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Marketing Project
Marketing Project
Brand- Adidas
For 80 years, Adidas has been providing, not only national, but global consumers state-of-
the-art footwear.
Today, the Adidas group is a Global Leader in the sporting goods industry and offers a broad
portfolio of products.
Our strategy is simple: continuously strengthen our brands and products to improve our
competitive position and financial performance.
The product name is Sole Mate. The product is made keeping in mind the demanding needs of the
customers. So, we have introduced a product in the era of workload, in which people could work
without getting their feet tired. The main specifications of our new launch are as follows –
SWOT Analysis
Strengths-
Strong Financial Position- the Company has a strong financial position, Sole Mate will be able
to increase its sales and generate €21.218 billion revenue in the year 2019. This will help in
investing more in the new venture Sole Mate.
Brand Value- Brand value is an important strength Adidas. According to BrandZ, Adidas is
one of the most valuable brands in the world. This will help in getting the required
recognition to the product Sole Mate.
Global Presence- Another key strength of Adidas brand is its global presence. The company
is operating in Asia Pacific, Western Europe, North and Latin America, Emerging markets and
Russia/CIS. This will help to get worldwide attention to the innovation master Sole Mate.
Innovative Marketing Strategy- Sole Mate marketing strategy is focused on three different
pillars i.e. focus on 6 different geographies and target markets, focused on speed-to-market
strategy and collaboratively worked with athletes, celebrities.
Product Innovation- The ultimate goal of Sole Mate is to deliver high performance but
sustainablityto its consumers. The company is designing and manufacturing innovative
products that give great comfort and are better for its users.
Weaknesses-
Product Pricing Strategy- Sole Mate has adopted premium pricing strategy and it makes
product less affordable for middle class consumers and in underdeveloped regions. The main
reasons behind premium pricing is the use innovative technologies and manufacturing
methods. This is why Sole Mate has been priced @6000$.
Sole Mate Products Turnaround is very slow- Sole Mate turnaround time is about 18 months
from design to store which is an alarming weakness of Sole Mate. This turnaround is very
slow and the company is unable to capitalize on emerging trends in the market.
Opportunities-
Product Line Expansion- Besides improving its existing product line, Sole Mate should also
focus on production line expansion to increase market share and at the same time
differentiate itself from competitors.
Exploring the Emerging Markets- For footwear brands, emerging markets have dynamic
growth opportunity. Sole Mate should also avail the opportunity because new markets have
low competition and developed economies are difficult compete in.
Endorsements- Sole Mate need to sign endorsements contracts with different athletes and
non-athlete superstars and celebrities. Because Celebrity-infusion strategy has worked for
many sportswear brand like PUMA. This can certainly increase the financial performance and
brand presence of Sole Mate. A star face connected with Sole Mate could increase its sale
rapidly.
Threats-
Strong Competitors- Though Sole Mate is one of the most innovative product in the world
but still the brand is facing strong competitors like Nike, Under Armour and PUMA in sports
footwear.
Economic Uncertainty- There are many economic factors that affect Sole Mate financial
performance for example currency fluctuations and strong dollar.
Dependence on Suppliers- Most of the Sole Mate production is outsource. According to The
supply chain structure 80 independent factories manufacturing Sole Mate product. Though
the company is focused to maintain long term relations still suppliers have strong bargaining
powers.
Laws and Regulation- Compliance with Governmental regulations and laws key threat to Sole
Mate. Asian countries are manufacturing 68% products of Sole Mate. Government
regulation, labour laws and taxes can affect the pricing and financial performance of the
company.
PESTLE Analysis
STP Analysis
Segmentation:
Sole Mate uses different types of segmentation to break a bigger market into small
customer groups.
1.) Demographic Segmentation- Segmentation according to demography is based on
consumer- demographic variables such as age, income, family size, socio-economic
status, etc. Mainly Sole Mate targets young consumers between 14 – 40 years of age
group. Sole Mate’ brand equity is not just confined to this customer segment, the brand
is quite popular and is liked by consumers with age group between 40 -65 as well.
2.) Psychographic Segmentation- Sole Mate uses psychographic as one of their main
segmentation. In order to create a premium positioning among consumers, Sole Mate
targets upper-middle-class consumers to affluent consumers.
Targeting:
After segmentation, the company needs to decide on the Targeting strategy. Companies
need to select the market segments that they want to focus on and put in their future
business strategy. The marketer faces a number of important decisions:
Below are three factors that are essential for evaluating a potential market segment-
Above mentioned are the few potential market segments that Sole Mate chooses to target
for driving their business strategy, sales and marketing activities.
Positioning:
Positioning is the final step in the S-T-P planning approach; Segmentation→ Targeting →
Positioning; a core framework for developing marketing plans and setting objectives
On finalizing the market segments that the company wants to target, the marketer’s next
step is to design a marketing program (also known as the marketing mix) that will resonate
with the target market or markets.
Sole Mate no longer portrays itself as a mere sports brand but as an Innovative Technology
Brand which is working very hard to bring revolutions in the footwear industry.
Marketing Mix
Product-
Sole Mate has various designs. Coming in various design and style, Sole Mate footwear is
robust and athletic. The aim of Sole Mate is to give the best footwear to their customers
which has the combination of technology and design. These products are not need based. In
fact, the shoes are bought by customers to satisfy their wants and desires.
Pricing-
Sole Mate, because of its style, design and promotions uses skimming prices as well as
competitive pricing. For run of the mill products, Sole Mate uses competitive pricing keeping
in mind competitors like Nike, Reebok and Puma. But for products which are newly
introduced in the market and are uniquely designed, Sole Mate is prices @6000$
Place-
The major way in which Sole Mate is sold is through retail outlets. Sole Mate has its own
exclusive stores in which the material is provided directly from the company. On the other
hand, many multi brand showrooms will also have Sole Mate on display. These multi brand
showrooms get the products from a distributor. The third and last mode of distribution is
online. The products are sold through online medium via fashion stores like myntra.com as
well as the online website of Adidas.
Promotion-
Sole Mate markets through various marketing vehicles but the majority of marketing is
concentrated on television and product placements. The creative team of Sole Mate is
known to pump adrenaline in their customers through ads which are well made, very
creative and filled with energy. These ads attract the customers towards the brand by
sending the right marketing message to the customer.
The tagline of Adidas “Impossible is nothing” is in itself a very powerful statement for the
brand.
After television, product placement is the second line of promotion for Sole Mate. The
popularity of the brand is because it ties up with the top players across the world such as
Lionel Messi, Ronaldinho, Sachin Tendulkar and various others.
At the same time, Sole Mate is planning to sponsor teams and some of the top teams
include Real Madrid, France, Great Britain (in football), England and South Africa (in cricket)
and several others.
Launch Plan
We will show advertisements two months before launch through different mediums of
promotion, in order to create curiosity in buyers. On big retails outlets like Big bazaar,
Reliance Footwear, Mochi, etc., we will put sample shoes for sale so that feedback can be
taken properly from the buyers and subsequent changes can be bring about it.
One Month before launch, we will start showing advertisement all around the country for
our product. Our maximum investment will be on video, audio and print ads.
There will be an advertisement on every channel at all possible time. We will take into
consideration radios also. We will be doing public gatherings sponsoring shows and events.
Advertisement Plan