Transcript 1. What is Adidas` position in the athletic shoe

Brand In Hand
1
Group:- 1
 Md. Istiaq Alam- 08104074
 Golam Morshed Hasan- 08104097
 Tawhid Rifat Ami- 08104155
 Nafis Ahmed- 07204018
 Shafat Zamil Upal- 07204051
2
Overview of Adidas
 Sports apparel, footwear, accessories
manufacturer
 Founded in 1920 by Adolf Dassler
 Registered in 1949
 Goes public in 1995 by enlisting in Frankfurt
and Paris stock exchange.
3
1. What is Adidas’ position in the athletic shoe
market? How does the brand seem to be doing in
this market?
 2nd largest sport apparel, footwear and accessories manufacturer.
 Nike is the strongest competitor in case of sales and revenue
 Adidas mostly emphasis on Soccer segment in Europe, basketball
segment in North America.
 Spend on advertising & promotion less comparatively to Nike. Nike
spend $1.4 billion and Adidas spend $900 million.
 Adidas got 16% of the market share and Reebok has got 16% market
share as well. While Nike has got the 40% market share in athletic
wear industry.
 Adidas mostly sales their product through big retail shops. Adidas has
over 2112 retail outlets thorough which they sales their product.
 The Group is a global player and principally operates in Asian,
European, Latin American and North American regions through more
than 170 subsidiaries.
4
2. What evidence does Adidas have suggests
the importance and potential success of
digital interactive and mobile marketing?

Adidas have found that Digital interactive marketing is very low
cost
 Mobile phone becomes a common and private stuff. So people
keep online on its marketing channel 24 hours day and 7
days/week. Most of the major market (Countries) they are using
2.5 and 3g phones. Example
-Netherland
2003 74%
2006 79%
-UK
2003 70%
2006 77%
-Germany
2003
72%
2006
79%
Continued…

Media consumption trend is changing. Before 2003 Adidas devoted
all their marketing effort to traditional media but when they realize
that by 2007 all the marketing consumption would be digital. They
shifted their marketing effort from traditional media.

Adidas can take advantage of time and place because shopping is a
certain extent of impulsive buying, According to classic ads
method.

From the exhibit 1 : Adidas projected that by 2020

Per week consumption of print media will be decreased.

People spend almost 90/week playing games.

Digital radio and wireless consumption hours/week will increase.

Digital TV consumption will be decreased.

And Internet consumption will be increased distinctively.
Continued…
 Another great evidence of potential success is, their main
competitor NIKE got huge success in digital interactive and
mobile marketing.
Adidas got huge success when they were entering in Digital
interactive mobile marketing- UK, in a pilot program 6 000 000 ringtones were downloaded.
-When they were promoting ”Impossible is nothing” campaign
using yahoo portal- 5 millions downloads were made.
-
In R2L campaign
-
10000 ring tones were downloaded
-
The company made 63000 subscribers
Continued…
They see in 2003 that:
Youth spending in mobile media:
-North America 250 million
-Asia pacific 6250 million
-Europe 6900 million
And they projected in 2006:
-North America 4500 million
-Asia pacific 16000 million
-Europe 8500 million
-As their target consumer is 14-24 years people. They have found
that their target consumers are more interested in mobile and digital
media. And it was a strong evidence they had found and changed
their marketing activates.
-They partnered with MTV.
Continued…
 Coca cola got huge success in this digital interactive mobile
marketing. This led adidas to move towards mobile marketing.
3.What is the Brand in the Hand concept?
What does this mean to adidas and its
branding efforts?
 Promoting their brand
through mobile phones by
sending text messages ,
creating wallpaper
downloads, applications,
games , ringtones regarding
adidas .
 They have to create
compelling messages to
attract the consumers which
will not irritate them.
10
Continued…..
 They are shifting from traditional advertising to a more
digital approach . Nowadays almost everyone owns a
mobile phone and it will make it much more easier to
promote their brand as people are exposed to it all the
time.
 Adidas is trying to capture the market by using the
latest trend and after the introduction of 3G and smart
phones consumers can also see the brand commercials.
 One advantage is that it can be directly delivered to its
target audience.
11
4. Why did Adidas choose to centre
the campaign based on Missy
Elliott?
 Adidas launched ‘Respect
M.E’.
 Missy Elliott is famous hip-
hop star in USA.
 Attract the young
Americans.
 People of USA follow local
star more rather than other.
 Targeted hundred of
thousand customer through
M.E campaign.
12
5. Role of MMC in Brand
Communication
 Increased spending on digital advertisements
 Outcome surpasses the projection
 Message in different format by combining global brands
with regional preference
 High growth potential
13
Continued…
 MMC appeals to individual-based audiences rather
than mass-based public.
 It provides recreational, funny and interesting
elements.
 A new shopping channel could be created.
 The information sent by MMC is much more
meaningful comparing with that from the traditional
channel.
14
Appendix
The objectives of the mobile campaign were to:
 1) Show the product line,
 2) Create consumer demand,
 3) Drive traffic to retail outlets,
 4) Help consumers locate the products,
 5) Grow the existing database of Missy fans and
capture SMS data,
 6) Alter fans to product line activity,
 7) Enable users to download exclusive Respect M.E.
mobile content onto their handsets for viral promotion.
15
THANK YOU
16