...2 – Adidas Brand in the Hand Introduction This case deals largely with mobile and modern advertising. In the case it introduces Adidas’ first experiences with mobile marketing and how it was success. This was due largely to the increase in wireless technology becoming so abundant. The usage of this technology became apparently significant to people in their everyday life and Adidas took full advantage of that by advertising through cell phones (ring tones, applets, etc.) and even through some of the first massive Internet ads. Their ads were so successful they crashed the site. This lent immediate attention to the power of advertising through various and popular mediums. Adidas was one of the first organizations to utilize online advertisements to their potential. They saw trends and reacted upon them. If one looks at exhibit 1, media consumption is based highly on wireless media. Their utilization of online media boosted their awareness extensively, however it is mentioned that their profit margin was slim in some cases. An example of one of their successful campaigns came when they released an applet that allowed one to view live scores. Their projected sales were 30,000, however when they release the product halfway through the campaign they already more than doubled that number. A key fact to note is that Adidas significantly less money on mobile media advertising than in Asia-Pacific or in Europe by roughly $4,000,000,000. Another note is that Adidas, in...
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...Marketing” 5 Pros and Cons 7 Financial Calculations/Evaluation and Control 8 Contingency Plan 9 Appendices 11 Executive Summary In late 2004, adidas has launched the Respect M.E. line of sports apparel with hip-hop star Missy Elliot in Europe, and is preparing to introduce it in the United States. The line has been promoted via mobile advertising, online, and with an upcoming face-to-face event in Miami. The focus of the campaign is the mobile effort, which is seen as an inexpensive and yet potentially wide-reaching marketing strategy. This is especially important for adidas, as their advertising budget is only about 2/3rds the size of their greatest competitor in this segment, Nike. The determination about how to proceed with the launch in the U.S. revolves around the benefits and limitations of mobile media, including the technological limitations and social considerations. The suggested strategy for adidas is to maintain its strong mobile presence, supported by online content and tie-ins, but to supplement this approach with a limited infusion of “traditional” advertising. The goal of this hybrid strategy is to advertise via a widespread and tested mainstream medium the existence and benefits of the mobile marketing campaign, thus increasing awareness of the more modern and “hip” promotion. This is especially significant with respect to adidas core target audience, those aged 12-24 years. The expected outcome of this strategy is to engage a fan base of hundreds of thousands joining...
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...H 905A24 THE BRAND IN THE HAND: MOBILE MARKETING AT ADIDAS David Wesley prepared this case under the supervision of Professors Andy Rohm and Fareena Sultan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services is the exclusive representative of the copyright holder and prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 6613882; e-mail cases@ivey.uwo.ca. Copyright © 2005, Northeastern University, College of Business Administration Version: (A) 2005-11-07 Nick Drake, Global Media manager (Global Media Group) for adidas, arrived at the company’s headquarters to present a bold new marketing strategy, based around mobile phones. “We call it the Brand in the Hand,” he told the senior marketing executives who had gathered to present their strategy for the upcoming year. The Global Media Group had been arguing that mobile marketing was the ...
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...Nike and adidas are sportswear companies whose products are very popular around the world, while Nike has the upper hand in sales and sponsorships, Adidas is growing. Adidas owns Reebok, Taylor Made golf company and Rockport. Nike owns the Jordan Brand, Umbro, Hurley, Converse and Cole Haan. "Nike", the name came from the Greek name for the almighty Goddess of Victory. The company was originally named "blue ribbon sports". The name "Adidas" is a juxtaposition of the company founder Adolf Dassler's nickname-- Adi Dassler. Adidas' motto is "Impossible is Nothing" or "all day I dream about sports". Nike's motto is "Just do it". Adidas' sport section has a three stripe design; Nike has a "swoosh" symbol. Adidas' "Originals" brand has a "Trefoil" design. Nike initiated as a brand focusing on track and field while Adidas' primary focus was soccer. Both these companies have expanded enormously ever since and are the two most notable brands in any field of sports. Adidas believes in providing equipment for every sports present including boxing, table tennis, wrestling and gymnastics, without giving significant importance being the leader, while Nike believes in a more focused approach, dealing in the most popular and the most followed sports, making sure it's the most dominant force present. There are some perceptions that Nike is slightly more overly priced than it's German rival however there are no studies conducted which prove this. Some people also consider Nike to be more...
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...Introduction: STP strategy used by Adidas: Segmentation: All successful organizations have outstanding marketing strategies which they segment strategically. The market you sell to is very important to you organization. Companies such as Adidas market to athletes of all ages over the world. Adidas markets to professionals and amateur athletes. The market segmentation plays a key role in the marketing strategy. Each market is unique so the organization has to be careful upon choosing the right one(s). The purpose of market segmentation is to enable the marketer to adjust marketing mixes (product, price, promotion, place) to meet the needs of one or more specific segments. Basically marketers use the market segmentation process to divide big markets into smaller segments according to characteristics of individuals, different groups and locations. Adidas the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world markets by looking at buying attitudes and buying practices of different people. The sellers design a separate market program for each buyer. Adidas mainly focuses on demographic and psychographic segmentation's. So Adidas develops their brand in 3 different styles of segmentation. Demographic segmentation refers to dividing the market into groups based on demographic variables, such as sex and age. This method has long been used in clothing market. Adidas brands products into range of male, female and kids, according...
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...ADIDAS AND NIKE Nike and Adidas are two the largest sportswear companies of nowadays. They are the giants in the sportswear industry, which always introduce innovative products, in order to become the ultimate market leaders. Nike is an American multinational corporation, which produces footwear, clothes, equipment and other active sport items (Feifer 2014). The company was founded in 1964 by Phil Knight and Bill Bowerman. Nike uses specific method of advertising, which differentiates it from other sports companies; it creates motivational short videos, which promote sport and inspire people to stay fit. Hence, making an accent on sport, but not sportswear, Nike attracts customers in nonintrusive manner. In 2013, the total revenue of the company was $25.3 billion (Hall 2005). Adidas is a German sportswear company founded in 1924 by Adolf Dassler (Frenkel & Scott 2002). As well as Nike, Adidas focuses mainly on various types of sportswear, such as shoes, clothes, equipment and so on. The feature of Adidas manufacture is providing specific equipment for different kinds of sports, like tennis, baseball, basketball, skateboarding and cricket. The company’s total revenue was €14.49 billion in 2013 (Greeley 2014). Nike and Adidas offer similar services to clients; nevertheless, none of them have received the irrevocable advantage yet. Hence, each company has its own large audience of clients, which find something they like in a chosen sportswear provider. The analysis of...
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...for the last 3 months Stock Chart for the last 3 months Performance Evaluation (Feb, 2012 -Jan, 2014) Performance Evaluation (Feb, 2012 -Jan, 2014) Key Statistics (Vs Major Competitor) Key Statistics (Vs Major Competitor) Introduction NIKE, Inc. is an American multinational company that is involved in the athletic industry. The company focuses on the branding, marketing, designing, and development of several athletic equipment, shoes, and apparel. It is one of the world’s largest supplier of athletic shoes and apparel with the Jordan Brand being its biggest name brand. The NIKE swoosh is valued at around $10.7 billion, and is one of the most valuable brand among sports business. Stock Performance Looking at the three measures of risk adjusted performances shows that Nike as a stock has been for the most part successful in its performance. The Jensen’s Alpha of a 1.18 shows that Nike has outperformed the market. On the other hand, the Sharpe Ratio of Nike as a 0.27 illustrates that as an individual stock it has also had a good performance since Nike would earn an annual risk premium of a 0.27 per 1 percent of portfolio total risk. The positive 0.27 ratio is representative of a good performance, but when compared to the S&P 500 Sharpe Ratio the Nike stock appears to have been underperforming against the market. Finally, the Treynor Ratio puts Nike outperforming the...
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...BRAND IDENTITY PRISM Brasnd Identity Prism KAPFERER brand identity diagram as a six-sided prism Constructed Source/Sender Constructed Receiver * Physique according to him is the basis of the brand. * E.G. the physique of Philips is “technology and reliability” while for the brand Tata it is “trust” * Personality is same as Aaker, it answers the question “what happens to this brand when it becomes a person?” * Relationship is the handshake between consumer and the organisation. * Eg. the relationship with “safola” is safety. * Reflection is the consumer’s perception for what the brands stands for. * E.g. coke’s image more attract youth. * Self-image is what the consumer think of himself. * E.g. benz Car owner think that since he has bought the car he is treating himself to one of the best car in the world. * Culture symbolizes the organization, its country-of-origin and the values it stands for. * E.g. traditional brands like balsara, dabur and zandu. * Relationship is the handshake between consumer and the organisation. * E.g. the relationship with “safola” is safety. * Reflection is the consumer’s perception for what the brands stands for. * E.g. coke’s image more attract...
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... baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and recreational uses. Nike is well known and popular in youth culture, chav culture and hip hop culture as they supply urban fashion clothing. Adidas: Running Adidas currently manufactures several running shoes. Football (soccer) One of the main focuses of Adidas is football kit and associated equipment. Adidas also provides apparel and equipment for all teams in Major League Soccer. Adidas remain a major company in the supply of team kits for international football teams. Adidas also makes referee kits that are used in international competition and by many countries and leagues in the world. Tennis Adidas has sponsored tennis players and recently introduced a new line of tennis racquets. While the Feather is made for the "regular player", and the Response for the "club player", Adidas targets the "tournament player" with the 12.2 oz Barricade tour model. ADIDAS AGType Public (AG, FWB: ADS) Founded 1924 (Registered in 1949) Founder(s) Adolf Dassler Headquarters Herzogenaurach ,Germany. Key people Herbert Hainer (CEO), Erich Stammminger(CEO, Adidas brand)....
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...Branding in Soccer Light and Shadow Branding in Soccer Light and Shadow Introduction “Some people think football is a matter of life and death. I assure you, it's much more serious than that.” (Gloves, S. 2012) This much quoted comment of the former, British football manager Bill Shankly describes exactly my view of football. I am a big fan of the most popular sport in the world. Sure I know that this comment is exaggerated, but football becomes more and more important. Not only for the fans and the sportsmen, also for the global economy. (Hamil, S. and Chadwick, S. 2010) In professional football the success goes hand in hand with money. Today it is almost impossible to win a big trophy like the UEFA Championsleague without investing lots of money. The FC Barcelona is ranked as the best team in the world and invested in the last five years an average of 40 Million Euros per annum in new players. (Transfermarkt 2011) But where does all that money come from? According to Uli Hoeneß, the president of German football club FC Bayern Munich, only 15% of the twelve million DMs (6.1 Million Euros) revenue were out of broadcasting, marketing and sponsoring when he began in 1979 his career as a manager. (RP online 2011) His aim was to make his club independent from earnings from the spectators. As you can see in the following diagram he achieved his aim. In the year 2010 Bayern’s matchday earnings were only 21% of the total revenue. The biggest part is now coming from the commercial...
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...strategies of two companies from the same industry. The strategies of Nike and Adidas have been compared from the textile industry. Nike and Adidas both specialize in footwear, apparel and accessories and their competition is intense as Nike is the market leader and Adidas is the market challenger. The topics in this assignment cover critical incidents of both Nike and Adidas that occurred in the past and the comparison between both their strategies as well their future plans. This assignment shows us the influence the strategy has on the success or failure of companies and how companies craft sustainable strategies that help them to retain their position in the market. Table of Contents Page 1.0 Introduction 1 2.0 Literature review 1 3.0 Backgrounds of Nike and Adidas 2 3.1 Company overview of Nike 2 3.2 Company overview of Adidas 2 4.0 Critical Incidents that occurred in the past 3 4.1 Critical incidents that affected Nike 3 4.2 Critical incidents that affected Adidas 5 5.0 Comparison of the strategies of the companies 8 5.1 Strategies of Nike 8 5.2 Strategies of Adidas 9 5.3 Comparison of the strategies of Nike and Adidas 11 6.0 Future plans of Nike and Adidas 13 7.0 Conclusion 14 8.0 List of...
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...markets. To this end, Adidas Company is critically reviewed. Adidas manufactures sportswear and equipment. This report uses a survey design where a questionnaire or an opinion survey is the data collection instrument. Ethical consumerism is influenced by several factors some of which are, the quality of the products, advertisements, brand image and the moral value that users attach to different products. Corporate social responsibility and appropriate advertising are some of the activities that improve ethical consumerism. The data collected in this study is analyzed and presented in tables and figures. Contents Executive Summary 2 List of Tables 4 List of Figures 5 1.0 Background of the Study 6 1.1 Introduction 6 2.0 Literature Review 6 2.1 Overview of Ethical consumerism 6 2.2 Review of Adidas Company 9 2.2.1 Adidas Mission, Vision and Values 10 3.0 Methodology 12 4.0 Results of Survey 12 4.1 Response rate 12 4.2 Price of Adidas products 13 4.3 Quality of Adidas products 15 4.4 Brand Image of Adidas 16 4.5 Convenience for purchasing Adidas products 17 4.6 Attractiveness of Adidas products 18 4.7 Usefulness of Adidas Products 19 4.8 Advertisement for Adidas products 20 4.9 Ethical Values attached to Adidas products 21 5.0 Conclusion 22 6.0 Recommedations 22 Reference List 24 Questionnaire 25 List of Tables Table 4.1 Response Rate……………………………………………………………………13 Table 4.2 Price of Adidas...
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...Nike and Adidas Compare and contrast essay Both Nike and Adidas are sportswear companies whose products throughout many parts of the world are very popular and have been the top two leading sport companies in the sport industry. The purpose of this essay is to compare and contrast Nike and Adidas companies in terms of headquarters, market focus, sponsorships, marketing and advertising, price and product. Nike is an international U.S.-American sportswear manufacturers. It was founded by Bill Bowerman in the year 1972 and the slogan is “Just Do It”. On the other hand, Adidas is a worldwide sportwears manufacturer based in Germany and founded by Adolf Dassler on 18 August 1949. The slogan is “Impossible is nothing”. These two companies sell and offer a wide range of products for the customers and their products offered is mainly on sports wear for men and women. These companies also provide the customers varieties of footwear such as sports shoes, casual shoes, boots, sandals and stockings. While they are selling similar products, Nike products are more expensive than Adidas because all Nike brand has high and advance technology. Nike and Adidas have also been the top sponsors in the sport industry. Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. In contrast, Adidas sponsors professional soccer, tennis, general athletics with mainly clothing. In terms of market focus, Retail is a key...
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...Founded in 1962, by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon sports, now named Nike Inc., is a $10.7 Billion brand and is arguably the most valuable brand among sports businesses. Consistently ranked one of the best places to work, Nike has created a corporate culture rich with employee loyalty and team spirit. Keeping with the sports theme and culture Nike’s red swoosh is all throughout the company facilities, the corporate head quarters is called campus, employees are called players and coaches, and the meetings are even called huddles. Nike asks it players (employees) to work by two principals above all others, “Honesty first, and competition second. Compete with yourself not your colleagues.” Nike’s leadership and top management style can be characterized by the team management approach. This style of leadership leads to relationships of trust and respect. As the website states, “At NIKE, Inc., we believe that a talented, diverse and inclusive employee base helps drive the creativity that is central to our brands. Our employee base includes a broad range of functions and roles globally, from brand and category experts to footwear designers and retail workers, from specialists in logistics, customs, tax and trade, to distribution-center managers and many, many more.” (nike.com) Adidas is a German multinational corporation that designs and manufactures sports clothing and accessories based in Herzogenaurach, Germany. The company was...
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...familiar with “The Adidas Group.” The Adidas group is a publically traded company in Europe and with globalization it has increased its shares in the market. Adidas being traded on the European market is what we call an overnight stock. These stocks are traded at night here in the United States and open after the New York Stock Exchange closes at 4:00 PM eastern time. I will choose two segments of the general environment business factors that I feel influence this company and the industry to assess how they affect both Adidas Group and the Sporting Goods Industry. In addition I will use the five (5) forces of competition and evaluate which two of the processes are the most significant to the corporation by evaluating how Adidas has addressed them in the recent past. I will further use the two forces to predict what the Adidas Group might do to improve their corporation by addressing these forces in future endeavors. By choosing this corporation I will identify the external threats that affect them in the industry as well as the opportunities available. By doing this I will attempt to give my opinion on the corporation’s greatest threat and opportunity to identify some of their strengths and weaknesses for future growth potential. Identifying the firm’s resources, capabilities, and core competencies will assist in these opinions. Identifying its greatest competitor will also give me an idea of the competition and what their core competencies are that Adidas Group has to compete...
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