Adidas: Mobile Marketing

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Roadmap of Presentation
• Situation Analysis
•
• Marketing Problems
•
• Alternative Solutions

• Evaluation of Alternative Solutions

• Solution of Marketing Problems

• Implementation

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About Adidas

• Adidas was found in German in 1920 by Adolf Dassler. Following the

Second World War, it became an important supplier of footwear to
German soccer team.

• In 1974, the brand achieved international prominence when the Adidas-

sponsored German national team won the world cup soccer
championship.

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About Adidas
• In the 1990s, the company increasingly outsourced the production in
order to focus on marketing.

• Comptetive marketing strategy leaded to a well know brad all around the
world.

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 The Products

• Footwear

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 The Products

• Apperal

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 The Products
• Accessories

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The Capacity of adidas

• In the financial year 2004

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Market Share of Adidas

• Adidas’ tradational market is Europe and tradational product segment is

football product.

• In 2004, Adidas is the largest supplier of sportswear in Europe with $3

billion.

• Since 1998 company also focused USA market and basketball market
which is remote its traditional market and product. Adidas captured 16 %
of the athletic footwear market at USA versus to 40 % market share of
Nike.

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Market Share in USA

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Competitive Environment

Athletic Footwear:
• Nike

• Rebook

• Puma

• New Balance

• Asics

• Converse

• K-Swiss

• Sketcher

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Athletic Apperal :
• Nike

• Rebook

• Puma

• Quiksilver

• VF Knitwear

• Columbia

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Global Market Share

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Intensive Competition

• Intensive competition between Adidas and Nike, two leading companies of

market, make marketing process quite important for companies.

• Which enforce companies to penetrate their untradational market is their

willingness to increase market share.

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Adidas Competitive Strategy

• Football wear and Europe region is adidas tradatinal product and market.
Company pursue an expanding strategy to new market, and products.

• USA market and basketball products are among the adidas target areas.
adidas want to increase market share at USA

• Last endorsment of adidas is $8.6 billion dollars versus to Nike $12.8

billion dollars.

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New Marketing Strategy of Adidas

• In 2004, Nike spent a total of $ 1.4 billion on advertising and promotion

compared to approximately $ 900 million by Adidas.

• “Adidias goal is to be leading sport brand and that means we have to use
our money in smarter ways.” explained Rich Prendelville, head of global
media.

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 Dilemma :
Mobile Media versus Tradational

• Adidas tradationally advertised at sporting events and throug sponsorship

of sports team and player. In 2003, Adidas devoted its entire marketing
budget to tradational media.

• Dilemma was the trend which move away from tradational media to digital
media such as mobile device, video games and internet.

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Media Consumption Trend

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Mobile Marketing as a New
Marketing Strategy

• Due to the increasing importance of digital media after 2000s, Adidas

spended 15-25% of marketing budget to new media, more than any of its
competitors at 2005.

• Thanks to mobile marketing, adidas appealed lots of targeted clients

between 15-25 age, who uses internet and mobile phones intensively.

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The New Idea “Brand in Hand”

• “Brand in hand” concept is inspired from mobile tools like internet,

mobilephones. In order to reach clients at everywhere, adidas used these
tools at lots of mobile marketing application.

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“Colours” Campaign

• First interactive mobile marketing in Sweden in 2002.

• User could download adidas logo and ring tones to their mobile phone.
The collectable wallpaper enabled customers to have discount at adidas
store.

• In consequence of colours campaign, executives believed that mobile

marketing could be an effective weapon.

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Video Games

• Gaming is the biggest growing area among young customers.

• Adidas enabled the customers to download soccer game applet.Users

can choose David Beckham and different Adidas product at game.

• Adidas aimed that players would realise the benefits offered by real
products represented in the game.

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Road to Lisbon Campaign

• Adidas sponsored to Europen championship at 2004, and made lots of

activity as a part of “R2L” campaign. 13 Europen soccer stars travelled
across Europe on scooters. Final destination was Lisbon. The Porteguese
city where the championship would be done .

• Adidas created a R2L website that included ringtones, Java tiker applet
which can be downloaded to mobilephones and offered the real-time
score for the championship matches. User could obtain lots of facilities by
using mobilephones or internet.

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Adidas tried to tested the mobile marketing at this comprehensive campaign
without spending a significant money. Company also accomplished its goals.

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The Missy Elliot Campaign

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• Adidas used Miss Elliot a best selling female hip-hop star of all time. This
campaign was Adidas’s most ambitous mobile effort yet which attracted
“hundreds of thousand” of potential costumers.

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• Adidas prepared a Missy Elliot collection and started to sell in stores.

• Simultanuosly, created a website that cellphones access the site and

browse Missy Elliot collection,find nearist adidas store.

• Fans of Missy could easily download wallpaper, ringtones and others.

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Marketing Problems

Although Adidas pursue a competitive mobile marketing

strategy, it encountered some problems.

Firstly, Adidas advertisement especially sponsorded to

sports team, however costumer wants to define themselves
induvidually. That’s why Nike achieved high revenue with
Micheal Jordon advertisement

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 Another substantial problem can be assumed the Adidas’s narrow
targeted marketing strategy.

• Lack of regional marketing strategy of Adidas make them to

use advertisement in Turkey or other country, that they
prepare for Europe or USA market.

• Turkish customer are not able to exploit mobile marketing

of adidas.

• Adoptation problem can also occures in different region

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Marketing Solution

A marketing strategy which regards costumers age, gender and region

can be a favourable solution.

• For Turkey or other countries, using their own well known sporter will
appeal customer more than David Beckham do.

• In order to attract other costumer segment like15-25 aged female,

company have to use famous male singers at their advertisement. It
means different concerns lead different advertisement.

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Alternative solution-Different
Mobile marketing Campaign

1. Company can use 3 G mobile phones to introduce its new product to

Turkish customer before it comes out in store.

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ADVANTAGE DISADVANTAGE

Low marketing cost, opportunity to Can’t be too effective

introduce the product

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2. Creating a virtual environment like facebook, costumer involved by internet
or, mobilephones can chat, learn news about matches and critics.

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ADVANTAGE DISADVANTAGE

Low marketing cost, Increase at Focus only narrow segment.

brand awareness

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3. Company can get talking its customer with their idol football stars, singers
or politicians via 3G phones.

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ADVANTAGE DISADVANTAGE

Regional famous, which increase Needs high mobile marketing

the effectiveness. budget due to using famous
Appeal people who has different people at marketing.
concerns at different segment.
Costumer who don’t have 3 G
phones can use internet, so reach
every customer.

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 Implementation

In Turkey, campany will use a football star, singer and politician at their
campaign.

• Football star appeal young men,

• Singer attract young women,

• Politicion attract middle age costumer

They will be chosen among the most hit famous that lots of people are
ethusiastic to speak with them.

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3 famous poeple will involve the campaign. Adidas costumer will have a
chance to speak with famouses by 3G phones.

3 Famus people:
Arda, Hadise, Mustafa Sarıgül

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• Adidas will create famous’s collections,

• Downloaded wallpaper, ringtones will be available video by 3G.

• Company will introduce collection and other application at website which

is created for famous and collection.

• Tradational advertisement won’t be utilized.

• 3G application and famious collection will be introduced at stores and

websites.

• Yahoo, google and other web portal will be use for dvertisment.

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OUTCOMES

• Although famous people will increase the cost of marketing, using mobile
marketing will decrease the other cost like TV advertisement or others.

• Adidas will able to achive high revenue at every segment by using mobile
marketing, the cheapest way of advertising.

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Thank you for your attention

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