B rand I n H and 1

Group:- 1  Md. Istiaq Alam  Golam Morshed Hasan  Tawhid Rifat Ami  Nafis Ahmed  Shafat Zamil Upal

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?  2 nd 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 % % -UK % % -Germany % %

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 ringtones were downloaded. -When they were promoting ”Impossible is nothing” campaign using yahoo portal- 5 millions downloads were made. - In R2L campaign ring tones were downloaded - The company made 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 million -Europe 8500 million -As their target consumer is 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

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