final project pt 1

ADIDAS CAMPAIGN

Matthew Eleweke

HISTORY

Adidas was founded in 1949 by Adolf Dassler

1954 World Cup, German National team defeated the Hungarian National team wearing adidas.

Nike

VF Corp

Under Armour

Skechers

Kering

COMPETITORS

COMPETITOR RANKING

Nike reported an 11% increase in total revenue at the end of 2014, equaling $27.8B.

Adidas reported a 6% increase in total revenue at the end of 2014.

• Sales declined 4% in North America.

PROBLEM

Adidas is overshadowed in the market.

Has yet to solidify themselves, and declare themselves as a brand with a specialty.

In order to regain market share, adidas must shift the perception of its consumers.

SWOT

STRENGTHS

Long brand life

Celebrity brand ambassadors (aside from athletes)

Diverse line of products• Sub-brands allow for a wide range of different

products and materials.

WEAKNESS

Nike commands over 40% of the athletic wear market.

Adidas has a history of poor customer service.

Overshadowed by Nike brand.• Nike has more of an influence, especially in the

United States.

OPPORTUNITIES

According to the adidas group, GDP in international markets is on the rise.

Product line expansion is an option.• Use celebrity ambassadors to reach more into

street-wear.

THREATS

Competition• VF Corp took 2nd place in athletic footwear market

last year over adidas.

Adidas is known for outsourcing its manufacturing to reduce cost of production.

MARKETING OBJECTIVES

Sales Objective:• Long Term: To regain the #2 spot in the Athletic

footwear market, and to solidify the adidas brand as the expert in athletic street-wear.

• Short Term: To increase sales by 10% in the year 2016.

Market Share Objectives:• Long Term: Gain 20% of the Market Share• Short Term: Control 10% of the market share

MARKET OBJECTIVES (CONT’D)

Consumer Objectives:

Build new customer base of 25%

Profit Objectives:• Increase adidas group profit in the year 2016 and

create a trend for at least the next 5 years.• Increase website usage rate.• Reduce days to deliver.

ADVERTISING OBJECTIVE

Create Brand Loyalty:

Launch an IMC in 2016. It will be an interactive campaign that encourages people to get involved with the brand, and the new steps it plans on taking.

The message will introduce adidas’ new “lifestyle” and will begin to label adidas as the new innovator of athletic street-wear.

DEMOGRAPHICS

14-25 year old athletes/non-athletes

Male and Female

Hypebeasts

Fashionable people

Sneakerheads

HOW DO THEY USE MEDIA?

10.5 hours/week watching television

89% use social media on daily basis.

14.5hours a week on smart phones.

MEDIA MIX

Television and Social media• Television is proven as the best way to reach a large

segment of people.• Social media is very cost friendly, and also a great

way to reach a large segment of people.

Focus mainly on reaching people through social media, and use television on an informative basis, and to have a consistent media mix.

SCHEDULING

Continuity Scheduling method.

This product/service requires continuous reinforcement

Advantages:• Cost efficient• Positioning advantages• Made to remind the consumer about the product.

MEDIA SYNERGY

This campaign allows people to design a personal, custom version of an adidas shoe from the line of a non-athlete brand ambassador.

Will be allowed to design their shoe on all social media platforms. (Facebook, Instagram, Twitter)

Purchaser will be allowed to purchase their 1 of 1 version of the shoe they have designed.

At the end of the competition, adidas will choose the top 10 designs created, and will allow people to decide on the best design.

• At the end of the competition, the winner will receive a shoe deal with adidas to design a shoe that will be released nationally.

WHAT IS SEEN

MORPH

MEDIA ROLES

Social media/ website will allow the consumer to create the shoe of their liking.

The television commercials will advertise the contest that is taking place, and outline the guidelines.

• Must use adidas celebrity endorsers.

COMPETITION

“Nike ID”:• Created in 2012• Initial launch allowed only the customization of one

shoe only.• Allows on color and fabric customization.

“Mi adidas”:• Available for original lifestyle shoes only.• Better than Nike because you can customize on

social media sites and not just the adidas website.

WORKS CITED

http://fortune.com/2015/06/05/adidas-footwear-fall/

http://financials.morningstar.com/competitors/industry-peer.action?t=ADDYY&region=usa&culture=en-US

 http://www.hoovers.com/company-information/cs/competition.adidas_AG.79a5676ce80e686e.html

http://spiderbook.com/adidas-competitors.html