Executive Summary: Adidas Marketing
The marketing plan relates to Adidas Company which intends to launch a new product called Adidas Score. The new shore is targeted to non-players. A Situation analysis evaluating the market condition and the firm’s performance is given. In addition, the firm’s strengths, weaknesses, opportunities and threats are given through a SWOT analysis.
The firm’s core strategy and strategic options in the process of producing and launching the product are also analyzed. The set of objectives which the firm intends to achieve by launching the new shoe are outlined. A comprehensive marketing strategy is incorporated in marketing the product.
This is attained by evaluating the various marketing variables which include price, product, promotion and place. The plan also includes the firm’s organization, implementation and control strategy to ensure effective marketing of the product.
Adidas Marketing Analysis
Over the past few years, the footwear industry has become very concentrated (Arnis & Cornwell 2005).The industry consists of a large number of smaller and segmented players. The large number of market players has resulted from the lucrative nature of the industry. In its operation, Adidas specializes in designing and manufacture of various sports apparels and shoes.
Through a market research conducted by the firm, the findings indicated that there is a high market potential with regard to the shoe industry. The findings of the market research revealed that customers are increasingly appreciating soccer. As a result, consumption of soccer products has increased (Cashmore 2010).
Despite the effects of the recession, a large number of consumers in the European Union are preferring quality and fashionable footwear (Arnis & Cornwell 2005). In addition, demand for footwear products is also associated with personal lifestyle. Over the years, Adidas has been well positioned with regard to designing and manufacture of football shoes to various football clubs around the world.
Its growth has also been enhanced by growth of football industry globally (CBI 2010). According to a study conducted in 2010 by NPD Sports, Adidas had a global market share of 34% with regard to football shoe brands (Boyle 2010).
In its core market which includes North America and Germany, the firm’s football market share is above 50%.Considering the shift in consumer behavior amongst the fans and non-players, the firm has identified an opportunity for it to grow.
Microenvironment
In its operation, Adidas is faced with intense competition from other companies which deal with designing and manufacturing of street soccer shoes.
The firm’s core competitors include Nike Inc., Amer Sports Corporation, Callaway Golf Company, Puma, Reebok, New Balance and K-Swiss. In its effort to launch the new shoe, the firm is faced by intense competition from Nike Inc. which as launched Nike Total90 Shoot III which is a street soccer shoe (Innovation Leaders 2010).
In marketing its products, Adidas has a well established network of suppliers and distributors. The distributors are located in various regions to ensure ease of accessibility of the firm’s products. The firm has 1000 distributors around the world.
In marketing its products, the firm has targeted consumers of diverse age groups. For example, the firm targets both the young and the elderly. As a result, the firm is able to increase the size of its market (Innovation Leaders 2010).
SWOT Analysis
The table below entails an evaluation of the firm’s strengths, weaknesses, opportunities and threats.
Core strategy
In the process of developing adidas score, the firm will integrate the concept of product differentiation. Product differentiation entails integrating uniqueness in a product and service. According to Jobber and Fahy (2009), a firm can attain a high competitive advantage through product differentiation. The firm will differentiate adidas score on the basis of quality. This will contribute towards the product appealing a wide range of customers.
Strategic option
Considering the fact that the firm has been in operation for a number of years dealing with production of a wide rang e of products such as shoes, the firm will incorporate the concept of product development as its strategic option (Jobber & Fahy 2009). This will entail marketing the new product in its existing market.
Adidas Marketing Objectives
In introducing the new product into the market, the firm’s management team intends to achieve a number of objectives as outlined below.
- The firm intends to attain a market share of 25% within a period of one year.
- By marketing the adidas score, the firm intends to increase its revenue level with a margin of 30% within a period of one year after launching the new shoe.
- The firm is also committed at ensuring that it supplies high quality shoe to its customers.
Marketing mix
Product
The firm will ensure that adidas score is of high quality. In order to achieve this, the firm’s management team will make use of Fusion Frame System Technology. Adidas will ensure that the new street soccer shoe is well designed to fit the customers’ requirements. The shoe will have an air cushioning and an innovative foam cushioning.
This will make it to be effective with regard to impact absorbing. A thin plate is sandwiched between the cushioning systems to ensure effective support of the feet. In addition, meshed materials will be used in making the shoe. This will ensure that air can flow freely thus giving the customer a comfortable and cool feeling. The new shoe will also be of relatively low weight.
In order to appeal a wide range of customers, the firm will ensure that the shoe is produced in a variety of designs. To ensure increased customer satisfaction, the management will conduct continuous innovation to the new shoe so as to move with the industry trends.
Pricing strategy
Considering the fact that the firm is introducing a new product into the market, the management of the firm will conduct a competitor and a consumer market research. The objective of the competitor market analysis will be to identify the pricing strategy of other firms in the industry. This will aid the management in the process of formulating its price strategy.
On the other hand, the consumer market research will aid the firm’s management in determining the price sensitive nature of the customers. From the research, the management will be able to formulate a good pricing strategy.
In its effort to enter the new market, the management of the firm will incorporate the concept of penetration pricing strategy. This involves setting the price of its products and services at a relatively low level compared to its competitors (Lamb, Hair & McDaniel 2008).
As a result, the new shoe will appeal to a wide range of customers considering the fact that consumers are price sensitive and their desire is to maximize their utility level.
Psychological pricing will also be integrated in the firm’s pricing strategy considering the fact that consumers consider the firm’s product to be expensive. This will involve setting price points that have psychological effects on the consumers purchasing process (Jobber & Fahy 2009).
For example, the price of Adidas-Score will be set at $ 18.99. This is relatively low compared to Nike Total90 Shoot III whose price is set at $19.99. This price points will play a significant role in ensuring that the firm’s products price appeals to the emotions of different customers in their purchasing process. As a result, individuals of different income groups will perceive the product’s pricing strategy to be fair.
Promotion strategy
The success every business establishment depends on the degree of market awareness through effective communication (Lamb, Hair & McDaniel 2008). This means that firms venturing into the footwear industry must conduct comprehensive market awareness. One of the ways through which this can be attained is through marketing communication (Doren, Fechner &Green 2000).
To attain this, the firm’s management team has formulated a comprehensive marketing communication. The management team will incorporate various market communication methods which include advertising, sales promotion, public relations and advertising.
Marketing communication through advertising will integrate various mediums. These include television, radio, outdoor advertising through use of billboards, print media such as newspapers and magazines (Koekemoer & Bird 2004).
The management team of the firm has realized that it can attain a high level of revenue through incorporation of the emerging Information Communication Technology (ICT). As a result, the team will integrate electronic commerce in communicating to the market. This will be attained through use of the internet.
Use of internet advertising will enable the firm to reach to a wide range of customers in the United Kingdom. This is due to the fact that a wide range of customers access the internet daily (O’Guinn, Allen & Semenik 2008). To achieve this, the firm will enter into contract with major search engines such as Google and Yahoo. The contract will enable the firm to post information regarding adidas score in these sites.
The management will also make use of the emerging social networking tools in creating market awareness. These tools include You Tube, wikis, blogs and Face book. In integrating these social networking tools, the management will make use of the most famous wikis and blogs in the UK.
You Tube will be an effective market awareness tool since the firm will post the pictures of adidas score on You Tube. This will ensure that potential customers see what the firm offers. In addition, use of You Tube is more cost effective.
The firm will also post the new shoe in its website. The website will enable potential customers to access information regarding the firm’s products and services. In addition, use of Wikis and Blogs will ensure that the firm creates an interactive environment with potential customers.
To ensure that market awareness is well created, the management of the firm will also integrate outdoor advertising. This will be achieved by entering into contracts with local advertising companies which have their bill boards located in strategic locations. The firm will post pictures of adidas score in these billboards. In addition, the advertisements in these bill boards will integrate catchy slogans that will appeal the customers.
Distribution strategy
According to Pickton and Broderick (2005.) product distribution is paramount in ensuring that a product is easily accessible in the market. The management team of the firm is committed at ensuring that the new shoe is accessible in the entire market. To attain this, the management team of the firm has formulated a comprehensive distribution strategy.
The strategy will integrate both direct and indirect forms of distribution. Direct distribution methods will be used within the local market. This will be attained by incorporating vertical distribution system in its supply chain.
Adidas Score will be supplied to wholesalers and retailers in the entire domestic market. In addition, the management of the firm will open distribution outlets in all the regions in the UK. The firm will distribute its products to major retailers.
Organization, Implementation and control
In order to ensure effective launching of the product, the firm’s management team has set a substantial amount in its marketing budget as illustrated below.
Evaluation: Marketing Objectives of Adidas
According to Milne (2008), the implementation process is significant in marketing since it turns the plans into actions. In addition, Milne (2008) asserts that the implementation defines the day to day activities which will contribute towards the plan’s success.
Implementation is paramount in contributing to the success of a firm’s marketing plan. This is due to the fact that the probability of market failure is high during the operation phase compared to planning phase.
In its operation, Adidas management team has formulated a comprehensive implementation plan which will ensure effective execution of the developed strategies in relation to marketing adidas score. The firm’s implementation plan has incorporated a schedule which defines the activities to be undertaken.
This results from the realization of the fact that assumption of that the entire marketing personnel will contribute towards the successful implementation of the firm could result to its failure. The table below illustrates the activities which will be undertaken and the time in which they are expected to commence.
A marketing plan cannot result into the desired success of if it is not controlled. As a result, the firm’s management team has integrated the concept of marketing control in marketing adidas score. Marketing control entails monitoring the plan which the firm’s management team intends to implement.
Through control, the management team will be able to mitigate the probability of deviations from the set plan. The ultimate result is that firm will be able to attain the set goals. Control entails a number of activities which includes evaluation, measurement and monitoring (Stapleton& Thomas 2007). A number of control standards to ensure that the marketing process is successful have been established.
The firm’s marketing department will conduct an analysis of adidas score market share compared to those of the competitors from time to time. This will enable the management team to assess the progress of the new shoe in the market.
Through market analysis, it will be possible for the firm’s management team to determine whether the new shoe has successfully penetrated the market. The percentage of market share attained by the new shoe will serve as an indicator with regard to the degree of market acceptability. The table below illustrates the intended control processes.
Conclusion: Marketing Plan of Adidas
From the analysis, there is a high probability of Adidas succeeding upon launching the new shoe. This arises from the fact that there is a change of trend amongst the consumers especially with regard to football. A large number of individuals are increasingly appreciating soccer in UK.
In addition, consumers have become quality conscious. By launching the new shoe, there is a high probability that a large number of consumers will be appealed. In order to achieve this, the firm should conduct a comprehensive market analysis.
This will ensure that it identifies market trends effectively. As a result, the firm will be able to adjust its marketing strategies appropriately. To ensure success of the product, the firm should implement an effective implementation and control strategy. The strategy should be evaluated from time to time to determine its effectiveness.
Reference List
Arnis, J. & Cornwell, B., 2005. Global sports sponsorship. London: Berg Publishers.
Boyle, B., 2010. NPD reports on athletic footwear and sports apparel market. Web.
Cashmore, E., 2010. Making sense of sports. New York: Taylor and Francis.
CBI. 2010. The future of footwear market in the European Union. Web.
Doren, D., Fechner, D. & Green, K. 2000. Promotional strategies on the World Wide Web. Journal of Marketing Communications. Vol. 6, issue 1 pp. 21-35.
Innovation Leaders. 2010. Profile: Adidas. Web.
Jobber, D. & Fahy, J.,2009. Foundations of marketing. London: McGraw-Hill International (UK) Ltd.
Koekemoer, L. & Bird, S. 2004. Marketing communications. New York: Juta and Company Limited.
Lamb, C., Hair, J. & McDaniel, C., 2008. Marketing. New York: Cengage Learning.
Milne, G. 2008. Implementing your marketing plan. Web.
O’Guinn, T., Allen, C. & Semenik, R., 2008. Advertising and integrated brand promotion. New Jersey: Cengage Learning.
Pickton, D. & Broderick, A., 2005. Integrated marketing communications. New York: FT Prentice Hall.
Stapleton, J. & Thomas, M., 2007. How to prepare a marketing plan: a guide to reaching the consumer market. New York: Gower Publishing Ltd.