BRAND IN HAND:

MOBILE MARKETING AT ADIDAS

PRESENTED BY:
DHAVAL MUCHHALA (9108)
HARSH RATHOD (9216)
SRIJIB MISRA (9251)
 COMPANY OVERVIEW
 Adidas is a global company that manufactures
sports goods, apparels, shoes and equipments
 Ranked No. 2 globally
 Market share is 33.65% as on 2009
 Revenue structure:
Apparel = 45%; Shoes = 45%; Hardware = 10%
 Adidas Group consists of the brands Adidas,
Reebok and Taylormade
 MISSION STATEMENT:
“ To become the best sports brand in the world. To that
end we will never equate quantity with quality”

 VISION STATEMENT:
“Our vision is for everyone in the Group and our supply
chain to share a common set of values and to follow
responsible business practices”
 MARKET SHARE OF ADIDAS
  2009 (In US $) 2009 (In US $)
Company Revenue (In Millions) Net income (In Millions)
Nike 18,627 1,883.40
Adidas 13,377 316
Puma 3,261 167
Sketchers 1,436 55
Columbia Sportswear Company 1,244 67
Callaway Golf Company 951 -15
Under Armor 857 47

Nike

Adidas

Puma

Sketchers

Nike Columbia Software Company

Adidas 46.86%
33.65% Callaway Golf Company

Under Armor
STRATEGIES FOLLOWED BY ADIDAS
• Adidas sports performance: Divisional Overview
– Football: Expanding market leadership
– Running: Building credibility with high performance athletes
– Training: Creating new consumer experience
– Basketball: Creating Consumer footprint
– Outdoor: The athletic brand in outdoors

• Adidas Sport style: Divisional overview

– Adidas Originals: from niche to fashion mainstream
– The Fashion Group: Adidas is fashion
 THE PROMOTIONAL CAMPAIGN
• Increased advertising spending to
accommodate important events like Soccer
World Cup
• $ 900 million advertising budget
• Television is still the primary communication
medium
• Traditionally sponsors sporting events and
sportspersons
• Clutter in print media
 PARADIGM SHIFT IN MARKETING MEDIA

• Breaking away from the clutter

• 3D billboard
• Living billboards created buzz
• Renting of popular websites like Yahoo
• Personal Mobile Gateway
• Spread of 3G technology
 MOBILE MARKETING
• Concept of “Brand in Hand”
• High levels of interaction
• Increased consumer participation

• The Initial Concept

– Downloading ringtones and wallpapers
– Downloadable game applets
– Downloading Adidas logo
 R2L Mobile Marketing

• Sponsors of UEFA 2004

• Polyphonic ringtones at less than a dollar
• Text messages to Club Nokia members,
advertising downloadable videos
• Euro 2004 Java Ticker applet
• Applications far exceeded expectations
 Respect M.E.
• The Missy Elliott Campaign
• Best selling female hip hop star roped in for a
year for brand promotion
• Adidas launched ME line of clothing and
footwear
• Campaign launched after budgets were
allocated
• Three way promotion: Mobile, Internet, Music
Awards
 INTERACTIVE MARKETING PLAN
Mobile , Radio, TV and
other forms of
Communication Media

SMS Informational Campaign

SMS Promotional Campaign

SMS Broadcast Campaign

Web Widget Registration

Other Campaigns

WAP – Mobile Website

APP - iPhone APP - Blackberry APP - Google

 ISSUES WITH MOBILE MARKETING
POSITIVES NEGATIVES
• Personal approach • Invasion of privacy
• High interaction • Continuous promotion
• Information comes with may evoke adverse
purchase option reaction
• Low cost of promotion • Pay per download is not
• Increasing mobile that popular
phone users
INCREASE IN MOBILE PHONE USERS
 SWOT Analysis
Strengths Weakness
1. Competitive pricing 1. High cost structure
2. Good financial position 2. Over pricing especially in developing
3. Effective Marketing Strategy countries
4. Strong online presence 3. Limited product line
5. Strong brand
6. Strong international operations
7. Strong distribution chain

Opportunities Threats
1. Change in consumer lifestyles. 1. Competition from foreign markets
2. Available technological innovations 2. Growing power of customers to set the price
3. Low barriers of entry in new markets 3. Growing power of suppliers to set the price
4. Expand customer base 4. Financial slowdown
5. Expand product/service lines 5. Increase in taxation
6. Market Diversification 6. New competitors entering the market
7. Merger or takeover 7. Counterfeit goods in developing countries
8. Failure of Competitors to take advantage of
new media
 COMPANY FINANCIALS (in million euros)

YEAR SALES EBT NET INCOME CASH BALANCE

2001 6112 376 208 85

2002 6523 390 229 122

2003 6267 438 260 189

2004 6478 520 314 195

2005 6636 655 434 1524

2006 10084 723 496 311

2007 10299 855 555 295

 PORTER`S 5 FORCE ANALYSIS
Threat of New Entrants - Low
• Website is Sophisticated
•Brand Identity – Competitive Advantage
• Hijacking of Websites

Threat of Substitute Competitive rivalry within

Products – Low an Industry - High
Little alternatives to switch More the firm goes global
or performance satisfaction more is the competition

Porter`s 5
Force Bargaining power of
Bargaining power of
Suppliers – Low Analysis Customers – High
•Many Suppliers – bargaining • Large number of buyer
power non existent relative to number of firms
• Dependency on large firms • Customization and
for their survival designing
 PESTLE Analysis (1 of 5)

• Political & Legal

– In Ghana Adidas claimed that it invented a cloth
calling Kante, but Ghananians claim that its their
invention and they call it Kanta
– It has to adhere to all the prevailing IP and patent
laws of countries in which it has its footsteps.
 PESTLE Analysis (2 of 5)

• Economic
– As a multinational company Adidas helps
countries to increase employment opportunities.
– The Industrial Production growth rate in Germany
was 1% in 2001-03, in 2004 it was 1.7%. This
increase was due to the big sponsorship in 2004
Olympic Games.
 PESTLE Analysis (3of 5)

• Socio – cultural
– In some parts of South America Adidas has
acknowledged that it has not wholly adhered to
the prevailing labor laws.
– Establishing teams to manage and monitor SARS in
Asia factory, washing stations, disinfectant units.
– Adidas provides training sessions on employment
standards, HR systems, health and safety.
 PESTLE Analysis (4 of 5)

• Technology

– Adidas made the world’s first “smart shoe”, adding

a microchip inside the shoe and wireless mp3
player.
– The packaging that company uses, are suitable for
transportation over long distances, humid
conditions and extreme temperature changes
 PESTLE Analysis (5 of 5)

• Environmental
– Adidas uses recycled paper and other
environmentally-friendly packaging materials.
– Using the hot melt system in the production by using
Heat – activated adhesives is environment friendly.
– Adidas policy is to control and monitor hazardous
substance to protect human health and
environment. Like, eliminating PVC by finding
substitutes like polyurethane, ethyl vinyl, silicones
thermoplastic rubber.
 SUGGESTIONS
• Increase product line
• Reduce operational cost
• Initiate marketing campaigns to tap ethnic
groups
THANK YOU!!!