Adidas Marketing case study solution: Adidas Marketing mix, Adidas website SMART Analysis, Adidas SWOT Analysis, Adidas Brand Identity, Adidas Digital Marketing Communication, Three Adidas Collaborations, Adidas Brand Elements & Evaluation, Adidas Brand positioning, Nike versus Adidas Brand comparative analysis
Case Snippet:
Identify and evaluate the strong and weak features of a website as marketing tool of a given company
Identify and describe the targeted customers group/s of a given company
Examine branding strategies of a given company (Adidas)
Explain the brand image, brand identity and brand relationship of a given company (Adidas)
Case Questions:
Part A:
Part B
Marketing Mix of Adidas Website
SMART Analysis for setting objectives of website of Adidas
SWOT Analysis of website of Adidas Adidas
Digital Marketing Communication
The three Adidas Collaborations
Evaluation of Brand elements on Adidas website
Brand positioning of Adidas on website
Nike versus Adidas Brand comparative analysis
1. Identify and evaluate the strong and weak features of a website as marketing tool of a Adidas company.
· Founded in 1949, Adidas AG is the largest sportswear company in Europe and second largest in world.
· Revenue € 23.6 Billion and net profit € 1.9 Billion (2019).
To become best sports brand through design, build up and sale of best sports products with best service and experience to its customers.
Athletic shoes, apparel and sporting goods and accessories.
Website
Reasons for selecting Adidas
Adidas is a multinational company engaged not only in offline sales but also through its website. Analysis will be more goal oriented and specific for this assignment.
Marketing Mix of Adidas Website
Online Product
Products are categorised on the basis of men, women, kids and sports shoes, clothing and accessories. Customisation of products is also offered by the website. Products have also been displayed brand wise. Features, description and all other necessary information on products along with product images have been exhibited to keep customers informed to meet their expectations. Mega offers and discounts are being displayed on first page of website.
Price of all products is mentioned along with products. Customers can navigate through website and search products of their choice, add products to cart, order online and also cancel the order anytime before product is dispatched directly using the website.
Discounts and offers are being displayed along with product display. Method of payments offered on website is through pay on delivery, credit & debit card, net banking and other UPI apps. Option of payment in instalments is also offered to customers through EMI.
Products are being shipped to all parts of the country including remote areas. Website has also option to order online and pick products from stores for its customers. Billing address and shipping address can be same or different as per the choice of the customers. Products are generally shipped and delivered within 3 to 15 days of time. In case of customised products delivery time ranges between 1 month to 3 months. Website also offers fast / emergency delivery system but charges extra for the same on request of the customer. Products are being shipped through courier partners of Adidas.
Adidas has dedicated team of SEO, SMO and web developers and designers to manage its website. It uses Google analytics tools and other web tools to keep an eye on traffics, returned customers, customers who have added products in cart but not purchased. It regularly conducts online survey to enhance customer experience on its website. It makes use of Google paid services and Facebook paid services to promote its products online. Company performs press release on regular basis and also offers feedback and product review option to customers to improve customer interactivity and experience on website.
Target Customers & Intended positioning
It targets young adults, adults as well as children who have passion for fitness & sports in the age group of 13-40 years but majority of its customers are of 15-30 years of age who hail from upper middle class or the luxury class of customers
SMART Analysis for setting objectives of website of Adidas
· E commerce sales to rise by 35 % in 2020 with revenue target of 4 Billion Pound.
· Reduce delivery time by 2 days for normal orders and 7 days for remote areas within 6 months.
· Shorten period of customised products delivery by one fourth time than current time period within one year.
· Adidas maintains customer relationship management software to track record of sales, tracks new entrants on website initiating purchase, tracks shipping and delivery time period and has vendor management system to track record of manufacturing and delivering customised products and other products.
· It has speed factories which can help to reduce manufacturing time of customised products.
· Efficient courier delivery management system and inventory management can help to reduce shipping period in remote areas and normal orders.
· In 2019, E Commerce revenue sales were up by 34 %.
· Reducing shipping time will help Adidas to beat its competitor Nike.
· Increase in E Commerce sales will help Adidas to achieve its overall sales growth of 8 % in 2020.
· Reduction in time of delivery of Customised products will help it to become global leader in the sporting goods industry which is ultimate mission of Adidas.
Increase in sales revenue is targeted to be achieved within one year, shipping period for normal and remote areas to be 6 months and decrease in delivery time of customised products to be achieved in one year time frame.
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SWOT Analysis of website of Adidas
Dedicated team to manage the operations of website to enhance customer experience.
Order online and collect from store.
Easy Cancellation of order and refund of money even after shipment.
Return of product within 30 days.
App to support browsing and conduct purchase through smart phones.
Prompt Online customer support to help on queries of customers.
Content updates on regular basis.
Detailed information of products.
Longer delivery time in remote areas.
Long waiting time for customised orders.
Delay in delivery of products.
Tapping of new markets and customers in areas where Adidas is not physically present.
Design and development of innovative products to attract more and more customers.
Competitors like Nike have also entered into E Commerce and offering customisation.
Local laws such as varying tax policies prevailing in other countries with regards to E Commerce.
Customers’ can’t review products on thee website.
Adidas Digital Marketing Communication
Website contains adequate information on products being displayed and are regularly updated to enhance customer experience.
Navigation on website is very easy from point of searching a product to check out. Process has been kept very simple to avoid confusions and anxiety while navigating from one product search to another.
Information on website is apt to its users as it shares minute details regarding manufacturing material to its delivery to the customers.
Website offers easy to process order, make payment either online or pay on cash, delivery tracking mechanism and easy to cancel order, get refund and return policy of 30 days.
Price inclusive of taxes is being displayed on website. Packaging and shipping are free of cost.
China US trade war and US imposition on tariffs can have negative impact on sales.
Web Based Commercial Communication
Online chat support to offer two way communications through website.
Creators club membership program to strengthen relationship with customers.
Cancellation of order anytime, change of shipping address, replacement of products, and return within 30 days of purchase is some of the features to promote flexibility.
One to one support to its customers through online support, emailing to update on new products and offers, customisation of products to offer personalisation to its customers.
Website remains operational 24x7. Online Chat support is available during office hours. Orders can be placed anytime.
Adidas through its website uses demographic and psychographic market segmentation to target customers of its products. Being a sports products company, it targets male and female customers of age between 14 to 40 who are athletes and fitness freak. The company is focused on targeting and strengthening its brand with the next generation of athletes of age of 14 to 19 years. However, Adidas is also popular among people of age between 40 to 65. It offers different sub brands to target different customer segments like Adidas Originals, Adidas Neo, Porsche design, Stella McCartney.
Psychographic segmentation is based on socioeconomic and personality variables of customers which are done using Niche pricing strategy and superior quality products of Adidas. Thus it targets upper middle class consumers to affluent consumers by premium positioning of its products among consumers.
To target its customers it has defined a segmentation grid which comprises of comprises six key quadrants Male Athlete, Female Athlete, Young Creator, Street wear Hound, Amplifier, and Value Consumer. Within this grid, it is key to win the most influential consumers, defined as the creator archetype. Major categorization of products have been done on the basis of male, female, kids and A separate sports category with on the website directly targets athlete customers to navigate products in that section. Navigation on the basis of male, female and kids category is meant to segment customers in small group on the basis of gender and age to target customers who are into sports or fitness lover.
Exploiting opportunity of changing social proposition of and growing culture of remaining fit and healthy, Adidas website is targeting customers of all age groups by displaying products under Male, female and kids category. Product display on the basis of brand categorization is done to easily locate the product and prompt buying decisions. Brand such as Adidas NEO is meant for kids products which are price competitive in market. Customisation of products offer competitive advantage as well as company’s thrust to remain innovative and create best and new as per the requirement of the customers to remain customer obsessive and offer great experience to them.
Potential Barriers Adidas Company is facing in implementing its idea:
· Pricing issue- Products of Adidas are expensive.
· Stiff competition from its rivals such as Nike, Armour, Puma.
· Availability of Fake and duplicate Adidas products in market.
· Delay in delivery due to shortage of inventory
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Part B
1. Identify how Adidas brand is currently expressed in the company website you have chosen. Evaluate elements used to assemble the brand.
Expression of brand on company website:
To be best in world in sports brand through design, build up and sale of best products and services empowered with advance technology and innovation to share best consumer experience.
Adidas Sport Performance
Focus: Products with advance technology and innovation
Group targeted: athletes and sports persons with a desire to remain strong smart, cool and excellent in their performance. It also targets customers who are inspired by fitness and sports.
Focus: Products that set trends including life style products.
Group targeted: consumers willing to express their individuality.
Focus of Adidas NEO: Stylish, fresh and young Products related to sports, Fashion and Lifestyle
Group targeted: Teenage consumers between 14 to 19 years.
The three Adidas Collaborations
Y-3, Porsche Design, and Stella McCartney focus on extraordinary products aligned with most updated technologies and top fashion designers.
Criterion
Easy and simple to memorise and recall.
Three stripes logo with Adidas tag is appealing helpful in easily recalling products of Adidas.
Useful in recalling brand name and its products.
Helpful in recognising brand
Makes easy to recognise products of Adidas.
Strong, positive and high quality
Represents sports challenges athletes face.
Performance based products as tools to face challenges
Convey mission of Adidas to become best sports brand in the world.
Convey association of brand with its customers.
Offer verbal imagery and mission of brand.
Three stripes using black and white colour depicts simplicity and likability.
Depicts boldness and strength.
‘Impossible is nothing’ enhances motivation of customers specifically sportsperson.
Energises customers through its visual and verbal appeal.
Easily transferable through sub brands inclusion.
Smart and excellent.
Unlimited additions in product ranges.
Promotes innovation and implementation of technology to adapt changes
Very good.
Difficult Near to impossible.
Modified multiple times in the past to adapt changes.
Responsive brand in redefining itself.
Modified to meet new requirements.
Redesigned multiple times in past.
Fully protected through acquisition of domain name
Fully protected through trademarks and copyright registration.
Strong, excellent and comprehensive.
Protected through copyrights.
Can be copied.
Evaluation of Brand elements on Adidas website
Since name Adidas has been derived from its founder, Adi Dassler a strong, versatile, enthusiastic and top quality shoe maker, the brand also depicts these three features accompanied with innovation and technology. The three striped with black and white logo along with its website name is not only easy to remember but also simple and catchy.
Brand logo signifies challenges and products displayed on website are considered as tools to overcome those challenges by athletes and fitness lovers.
Brand likability through website is visible through increase in its E commerce sales by 34 % in 2018. Also Logo of brand characterizes boldness and strength to the consumers’ thus increasing likability.
Website can easily incorporate sub brands and new products as per the design and resemblance of features into it, thus reflecting easy transferability through technology and innovative products.
Website URL may not be modified, however website is adaptable to changes to environment. Adidas logo went through multiple modifications since its inception and its mission supports adaptability.
Adidas has copyrights and trademark rights for its URL, Logo and slogans & patent rights for design of products and products. Hence company has protected its brand elements in all respects.
4. Explain the brand image of the company you have considered. Is there a gap between your brand image and the brand identity which is portrayed on the website? Explain your reasons.
1. As a product
Product Scope- to cater needs of athletes, sports persons and health & fitness freak at competitive price.
Product attributes- innovative design to match customer expectation, long lasting, customised, size fit for all, eco friendly raw material used,
Quality- Unmatched quality embedded with innovation and advance technology sports products much ahead than its competitors.
Users- athletes, fitness and health conscious people of age group between 14 to 65.
Uses- fitness and sports apparels shoes and accessories to deliver high performance in sports.
Country of origin and year of establishment- Herzogenaurach, Germany, 1924.
Organisation attributes- To deliver most innovative and best technology sports products to offer best consumer experience with a motive to become best sports brand in the world.
Local versus global- Multinational brand with presence in more than 160 countries worldwide physically and all around the globe through its Ecommerce website and distribution network.
Personality-
1. Sincerity- Real, original, honest, genuine
2. Excitement- Daring, trending, imaginative, independent, unique, adventurous
3. Competence- Reliable, successful, technical, confident, and efficient
4. Sophistication- Upper Class, smooth
5. Ruggedness – tough, strong.
Brand Customer relationship - committed to providing premium retail experiences to consumers with executions that connect, engage and inspire them. Brand strives to build a strong image, trust and loyalty with consumers through its brand strategy of ‘creating the new’.
Visual imagery & metaphors – Providing strength to accept challenges and overcome it.
Brand heritage – Long lasting heritage with high brand value in market. Brand is 95 years old.
Brand positioning of Adidas on website:
Messages transmitted:
Product- Most innovative and best technology based sports shoes, apparels and accessories to offer best consumer experience.
Price- Competitive pricing for normal product launches and skimming pricing for unique and technologically advanced product launches.
Place – Shipment and delivery of products in all parts of the world including remote areas to create trust and loyalty among customers.
Promotion/ Communication- Slogan of Adidas ‘Nothing is impossible’ rejoice consumers’ strength and empower them to overcome challenges and encourages them to become effortless in what they do. It portrays itself as a creators’ sports brand through its website Regular discounts and offers are made to customers on the website to increase sales and web traffic.
Nike versus Adidas Brand comparative analysis
The major competitor of Nike on E Commerce Platform is Nike. Both more or less follow similar branding strategy to lure customers but Adidas has leveraged the Internet and E Commerce marketing and sale more aggressively than Nike. Nike’s Ecommerce strategy created a strong brand position of its products and leader in this market contributing to its success in this market. However, Adidas has revamped its branding strategy from being a minor insignificant player during 1998 to reach to second position in the industry. Thus, it can be said that Adidas has really worked hard in strengthening its brand position in market through its continuous effort of designing and developing innovative and highly advanced products for its consumers to win their heart and maintain long lasting relationship through enhancing customer experiences.
Brand image of Adidas as perceived by consumers
Adidas through its website and E Commerce business has been successful in understanding the customer’s needs and design and development of innovative and technological products that suits their requirements. Adidas has been continuously accelerating on graph of having strong brand equity among customers in terms of an innovative, reliable, brave, tough, independent, daring trending and unique brand delivering promising and long lasting sports products to customers.
Gap between Brand image and brand identity:
Adidas fails in portraying itself as a company whose pricing is competitive among rivals. Local competitors can exert tough competition when it comes to target customers who seek low pricing with similar features. It will become difficult to target those customers who decide their buying decisions on the basis of pricing of products. Hence company should also focus on manufacturing products to cater needs of such customers in order to remain competitive in market.
Reference
Adidas Group. (2019). Adidas Annual Report 2019. Retrieved from https://report.adidas-group.com/2019/en/group-management-report-our-company/corporate-strategy/sales-and-distribution-strategy.html
Omer Khan. (2018). Retrieved from https://www.academia.eduv /19958453/Brand_ elements_ of_Adidas_and_Nike
Adidas Group (2019). Adidas Brand Strategy. Retrieved from https://report.adidas-group.com/2019/en/group-management-report-our-company/corporate-strategy/adidas-brand-strategy.html
Norizah Mustamil , Ho Yeow Chung & Mohd. Shoki Bin Mohd. Ariff. (2014).Determining Brand Personality of Nike Sports Shoes Using Aaker’s Brand Personality Scale; International Journal for Innovation Education and Research; Vol.2-06, 2014.
Julia Wildfeuer (2018). Branding and Customer Satisfaction: A Research about the Adidas Group. Novia University of applied sciences.
Kotler, P. , & Keller, K. L. (2006). Chapter 08: Identifying market segments and targets. In Marketing management (pp. 240–271). New Jersey: Pearson Prentice Hall.
Tonks, D. (2009). Validity and the design of market segments. Journal of Marketing Management, 25(3–4), 341–356.
Doran, G. T. (1981). There’s a S.M.A.R.T. way to write management’s goals and objectives. Management Review, 70(11), 35–36 (AMA FORUM).
Mosarrat Farhana. (2012). Brand Elements Lead to Brand Equity: Differentiate or Die. Retrieved from https://www.researchgate.net/publication/266684786_Brand_Elements_Lead_to_Brand_ E quity_Differentiate_or_Die.
Criterion
Easy and simple to memorise and recall.
Three stripes logo with Adidas tag is appealing helpful in easily recalling products of Adidas.
Useful in recalling brand name and its products.
Helpful in recognising brand
Makes easy to recognise products of Adidas.
Strong, positive and high quality
Represents sports challenges athletes face.
Performance based products as tools to face challenges
Convey mission of Adidas to become best sports brand in the world.
Convey association of brand with its customers.
Offer verbal imagery and mission of brand.
Three stripes using black and white colour depicts simplicity and likability.
Depicts boldness and strength.
‘Impossible is nothing’ enhances motivation of customers specifically sportsperson.
Energises customers through its visual and verbal appeal.
Easily transferable through sub brands inclusion.
Smart and excellent.
Unlimited additions in product ranges.
Promotes innovation and implementation of technology to adapt changes
Very good.
Difficult Near to impossible.
Modified multiple times in the past to adapt changes.
Responsive brand in redefining itself.
Modified to meet new requirements.
Redesigned multiple times in past.
Fully protected through acquisition of domain name
Fully protected through trademarks and copyright registration.
Strong, excellent and comprehensive.
Protected through copyrights.
Can be copied.
Evaluation of Brand elements on Adidas website
Since name Adidas has been derived from its founder, Adi Dassler a strong, versatile, enthusiastic and top quality shoe maker, the brand also depicts these three features accompanied with innovation and technology. The three striped with black and white logo along with its website name is not only easy to remember but also simple and catchy.
Brand logo signifies challenges and products displayed on website are considered as tools to overcome those challenges by athletes and fitness lovers.
Brand likability through website is visible through increase in its E commerce sales by 34 % in 2018. Also Logo of brand characterizes boldness and strength to the consumers’ thus increasing likability.
Website can easily incorporate sub brands and new products as per the design and resemblance of features into it, thus reflecting easy transferability through technology and innovative products.
Website URL may not be modified, however website is adaptable to changes to environment. Adidas logo went through multiple modifications since its inception and its mission supports adaptability.
Adidas has copyrights and trademark rights for its URL, Logo and slogans & patent rights for design of products and products. Hence company has protected its brand elements in all respects.
4. Explain the brand image of the company you have considered. Is there a gap between your brand image and the brand identity which is portrayed on the website? Explain your reasons.
1. As a product
Product Scope- to cater needs of athletes, sports persons and health & fitness freak at competitive price.
Product attributes- innovative design to match customer expectation, long lasting, customised, size fit for all, eco friendly raw material used,
Quality- Unmatched quality embedded with innovation and advance technology sports products much ahead than its competitors.
Users- athletes, fitness and health conscious people of age group between 14 to 65.
Uses- fitness and sports apparels shoes and accessories to deliver high performance in sports.
Country of origin and year of establishment- Herzogenaurach, Germany, 1924.
Organisation attributes- To deliver most innovative and best technology sports products to offer best consumer experience with a motive to become best sports brand in the world.
Local versus global- Multinational brand with presence in more than 160 countries worldwide physically and all around the globe through its Ecommerce website and distribution network.
Personality-
1. Sincerity- Real, original, honest, genuine
2. Excitement- Daring, trending, imaginative, independent, unique, adventurous
3. Competence- Reliable, successful, technical, confident, and efficient
4. Sophistication- Upper Class, smooth
5. Ruggedness – tough, strong.
Brand Customer relationship - committed to providing premium retail experiences to consumers with executions that connect, engage and inspire them. Brand strives to build a strong image, trust and loyalty with consumers through its brand strategy of ‘creating the new’.
Visual imagery & metaphors – Providing strength to accept challenges and overcome it.
Brand heritage – Long lasting heritage with high brand value in market. Brand is 95 years old.
Brand positioning of Adidas on website:
Messages transmitted:
Product- Most innovative and best technology based sports shoes, apparels and accessories to offer best consumer experience.
Price- Competitive pricing for normal product launches and skimming pricing for unique and technologically advanced product launches.
Place – Shipment and delivery of products in all parts of the world including remote areas to create trust and loyalty among customers.
Promotion/ Communication- Slogan of Adidas ‘Nothing is impossible’ rejoice consumers’ strength and empower them to overcome challenges and encourages them to become effortless in what they do. It portrays itself as a creators’ sports brand through its website Regular discounts and offers are made to customers on the website to increase sales and web traffic.
Nike versus Adidas Brand comparative analysis
The major competitor of Nike on E Commerce Platform is Nike. Both more or less follow similar branding strategy to lure customers but Adidas has leveraged the Internet and E Commerce marketing and sale more aggressively than Nike. Nike’s Ecommerce strategy created a strong brand position of its products and leader in this market contributing to its success in this market. However, Adidas has revamped its branding strategy from being a minor insignificant player during 1998 to reach to second position in the industry. Thus, it can be said that Adidas has really worked hard in strengthening its brand position in market through its continuous effort of designing and developing innovative and highly advanced products for its consumers to win their heart and maintain long lasting relationship through enhancing customer experiences.
Brand image of Adidas as perceived by consumers
Adidas through its website and E Commerce business has been successful in understanding the customer’s needs and design and development of innovative and technological products that suits their requirements. Adidas has been continuously accelerating on graph of having strong brand equity among customers in terms of an innovative, reliable, brave, tough, independent, daring trending and unique brand delivering promising and long lasting sports products to customers.
Gap between Brand image and brand identity:
Adidas fails in portraying itself as a company whose pricing is competitive among rivals. Local competitors can exert tough competition when it comes to target customers who seek low pricing with similar features. It will become difficult to target those customers who decide their buying decisions on the basis of pricing of products. Hence company should also focus on manufacturing products to cater needs of such customers in order to remain competitive in market.
Reference
Adidas Group. (2019). Adidas Annual Report 2019. Retrieved from https://report.adidas-group.com/2019/en/group-management-report-our-company/corporate-strategy/sales-and-distribution-strategy.html
Omer Khan. (2018). Retrieved from https://www.academia.eduv /19958453/Brand_ elements_ of_Adidas_and_Nike
Adidas Group (2019). Adidas Brand Strategy. Retrieved from https://report.adidas-group.com/2019/en/group-management-report-our-company/corporate-strategy/adidas-brand-strategy.html
Norizah Mustamil , Ho Yeow Chung & Mohd. Shoki Bin Mohd. Ariff. (2014).Determining Brand Personality of Nike Sports Shoes Using Aaker’s Brand Personality Scale; International Journal for Innovation Education and Research; Vol.2-06, 2014.
Julia Wildfeuer (2018). Branding and Customer Satisfaction: A Research about the Adidas Group. Novia University of applied sciences.
Kotler, P. , & Keller, K. L. (2006). Chapter 08: Identifying market segments and targets. In Marketing management (pp. 240–271). New Jersey: Pearson Prentice Hall.
Tonks, D. (2009). Validity and the design of market segments. Journal of Marketing Management, 25(3–4), 341–356.
Doran, G. T. (1981). There’s a S.M.A.R.T. way to write management’s goals and objectives. Management Review, 70(11), 35–36 (AMA FORUM).
Mosarrat Farhana. (2012). Brand Elements Lead to Brand Equity: Differentiate or Die. Retrieved from https://www.researchgate.net/publication/266684786_Brand_Elements_Lead_to_Brand_ E quity_Differentiate_or_Die.