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Kingston University
Faculty of Business and Law
MA Marketing with English
Marketing Communications – Group Assignment
“Sportswear: Adidas”
Module Title: Marketing Communications – BMM004
London, 19th December 2011
Group:
Can Cihan - K1160334
Catherine Rivas - K1101655
Jaroonrat Kovawinthaveewat – K1144255
Tomoko Kawashima - K1149575
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Executive Summary
The purpose of this report on Adidas is to re-lunch the company to make it the first
brand in sportswear sector in UK. This re-lunching process is important because
even Adidas spends more money than the leader (Nike), Adidas have not achieved
the leadership in UK yet.
To achieve the leadership firstly consumer trends investigated, then internal and
external environments were analyzed, the former with SWOT Analysis, the latter
with PEST analysis. After that new objectives were defined for corporate level,
marketing level and communication level. Furthermore, targeting, segmentation
and positioning theories are applied to reach the customer easily. Addition to this,
the most suitable communication tools were determined with take account of
budgeting constraints. Finally an evaluation is made with pre-testing and post-
testing techniques.
In the light of the researches, it can be seen that the new trend is being fashionable
in sportswear sector. Thus the slogan reviewed and changed as “Impossible Is
Nothing, Fashion Is Everything” to reflect the new trend and new objective of
Adidas.
To conclude, due to the forecasts of the sportswear trends and buyer behavior,
Adidas will change its strategy and communication interface to be a leader in
sportswear sector in UK. Moreover, there is a good chance for the company that
London Olympics will take place in near future. To use this chance, the company
will use all of the effective communication tools. Adidas will spread the new slogan
and new face to consumers.
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Table of Contents
1. Introduction...................................................................................................................4
2. Company Profile/ Products............................................................................................4
3. Context Analysis...........................................................................................................5
3.1 Consumer Trend......................................................................................................5
3.2 Business context: Sale and Market Share................................................................5
3.3 Competitor analysis.................................................................................................6
3.4 Internal Analysis – Adidas......................................................................................7
3.5 External Analysis - Adidas......................................................................................7
4. Objectives......................................................................................................................9
4.1 Corporate objectives................................................................................................9
4.2 Marketing Objectives............................................................................................10
4.3 Communication Objectives...................................................................................10
5. Targeting and Segmentation........................................................................................10
5.1 Demographic Trends.............................................................................................10
5.2 Behavioral/ Psychographic Trends........................................................................11
5.3 Pen Profile/ The target audience............................................................................11
6. Positioning...................................................................................................................11
7. Communication Strategy.............................................................................................12
7.1 Creative Brief.......................................................................................................13
7.1.1 Co-branding/Collaboration – Fusion “Adidas and H&M”.............................13
7.1.2 Integrated Marketing Communication........................................................16
8. Total Budgeting of the Campaign...............................................................................21
9. Evaluation and control.................................................................................................23
9.1 Pre-testing..............................................................................................................23
9.2 Post-testing............................................................................................................23
10. Conclusion.................................................................................................................24
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1. Introduction
Coming 2012, London will be the host of London Olympic 2012. It is easily
imagined that the enormous attentions toward Olympic could also turn to their
attitude of sports. Automatically this attitude would affect sportswear market
positively as they became more interested in sports. In terms of sportswear
market, one of the top brand Adidas has possessed a second market share
following the top leading company Nike for amount of times. Nike leads not only
products sales but consumer perceptions of the brand images. Then, this reports
aim to suggest Adidas re-launching strategy to differentiate and defeat Nike by
both creating new image and awareness of Adidas and increasing products sales.
Therefore, the precise marketing communication plan of Adidas, which is using
several advertising methods and platforms, will be demonstrating.
2. Company Profile/ Products
ADIDAS Group
The company name is based on its founder’s name, Adolf (Adi) Dassler
whose first name was shortened to the nickname Adi. Together with the initial
three letters of his surname it formed ADIDAS. Adolf (‘Adi’) Dassler began the story
of the Adidas Group in his mother’s washroom, a small room with no electricity
and no machinery in 1920. Moreover, on August 18th, 1949 Adidas was registered
as a commercial company called “Adolf Dassler Adidas Sportschuhfabrik” in Fürt,
the small town of Herzogenaurach (AdidasGroup, 2011a). In addition to this it is
also necessary to consider the logo of the company, the 3 – Stripes, was designed
by Adi Dassler and first usage of the symbol on footwear is in 1949. (AdidasGroup,
2011b).
Having considered the history of the company, it is necessary to turn to
nowadays. Adidas AG is the world’s second largest sports company in the sporting
goods industry in terms of annual sales, which is more than €10bn. Adidas consist
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on three brands, including Adidas, TaylorMade Golf, and Reebok. Europe, the
Americas, and Asia are the regions where the company operates in. Furthermore,
the headquarter of the company is located in Herzogenaurach, and Adidas Group
has 42,542 employees. In terms of product range, the company has; footwear,
sports apparel, sports accessories, golf equipment, golf ball, hockey equipment and
apparel (Datamonitor, 2011).
3. Context Analysis
3.1 Consumer Trend
According to Key note reports, The Kantar Media’s TGI survey shows that
more male consumer purchase sports clothes than female in 2010 due to their
rather participations of sports. One of the remarkable trends of consumers in
sportswear market is that they tend to purchase sportswear as a casual wear or
fashion purposes rather than practical uses. (Appendix 1) It is estimated by Mintel
report that the value of this market went upward by 21% over the 5years and
forecasted more increase between 2011 and 2016. (Appendix 2) Another factor
that impacts on this market is, according to Mintel, one quarter of consumers buy
sportswear at online shops such as amazon, M and M Direct, ASOS, e-Bay. It is also
seen in a survey asking the attitudes towards internet shopping. (Appendix 3)
Price considered shopper buy from e-retailers as they can find out the big discount
value at there.
3.2 Business context: Sale and Market Share.
Keynote (2011) stated that the Adidas Group is in the second place in
sportswear market share in the UK and the number one is Nike Inc. (Appendix 4).
Adidas became stronger in the market after its acquired Reebok that is the third
place in market share on that time in 2006. The main focus on sportswear of the
adidas brand are football, running, basketball, training and outdoor activities
(Keynote, 2011).
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Adidas Group has increased its sales in 2009 that accounted for 72.4% of
the total sale (Appendix 5) (Keynote, 2011). According to Keynote (2011)
illustrated that ‘more recent figures from adidas show that sales have increased
substantially in 2010, with net sales in the first 9 months of 2010 reaching
£9.06bn, compared with £7.92bn in the first 9 months of 2009, although the full
year’s figures have not yet been released by the Group’.
However, the pre-tax profit showed a significant decrease from £33.2m in
2006 to £11.7m in 2009 (Appendix 6). It can be argued that the pre-tax profit has
decreased from 2006 to 2009, although the total sale has increased in 2009. It
might have a result from the recession and increasing in production cost that is
cotton (Keynote, 2011).
The majority of sports purchases are made by more fashionable than the
previous time. The purpose of wearing sportswear in present are both practical
and leisure aims (Mintel, 2011). Nike launched its flagship Niketown store where
customers can create their shoes color and style by themselves situated in Oxford
Circus in London (Keynote, 2011). Adidas also follows this trend by allowing
customers design their own shoes in the adidas website (Adidas, 2011). It can be
argued that adidas and Nike capture the trend of customer; nevertheless, adidas
might not enough power to compete with Nike to be number one in the market
share because Nike offers this opportunity in the store whereas adidas put this on
their website. It is more realistic to select a product by facing a real one instead of
imagination.
3.3 Competitor analysis
Nike has been the top market leader stood by Adidas and dominated other
brands such as Puma, New Balance, Pentland Group PLC in sport clothing and
footwear market in UK (Appendix 7). The best-selling products in Nike are running
shoes and basketball boots, which is dominant in the market. Nike also specializes
in functional sportswear for many sports and also offers sports activities. In 2011,
they launched new i-phone application, which targeted women for encouraging
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their participation of sports by helping to achieve their training goal. This launched
in order to compete with Adidas application ‘miCoach’. As Appendix 8 shows, it is
dominant that Nike is best positioning in consumer attitudes of both
‘differentiation’ and ‘trust’ aspects within other competitors. Pental Group PLC has
variety of sportswear brands ranged from outdoor brand to swimwear specialized
brand. In terms of Puma, their products perform as both fashionable and
functional sportswear which is divided into three options: ‘Teamsports, Running,
Lifestyle and Fundamental’. (Key note, 2011)
3.4 Internal Analysis – Adidas
Adidas is owner of a strong portfolio and the mission of this brand as a
worldwide company is to become the best sport brand in the world. According to
Mishra, 2010, “Mission of Adidas Global is to be the best sports brand in the world
offering the best products and services. Adidas aims to come up as a socially and
environmentally responsible organization that embraces creativity and diversity
and reward its employees and shareholders”. Adidas is a consumer focused
company due to this brand is always improving quality, look, and image of the
products according to customer’s needs. The innovation and design is focused in
help athletes of every skill levels to achieve the best performance with each
product of the line. However, Adidas have been less orientated in fashion and
trends than other sportswear companies of the markets. This fact generates the
need of creating a campaign to demonstrate that Adidas could be a fashionable
trade name as the other competitors. (Data Monitor, 2011). In order to understand
the internal analysis of this company it is important to revise the SWOT analysis
who gives the strength, weaknesses, opportunities and trends of this brand
(Appendix 9).
3.5 External Analysis - Adidas
Political:
Adidas has to be aware of the political states and law created for the
governments of UK, as well as it does in all the countries. The government offers
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subsidies if organizations set up factories in areas of high unemployment such as
South Wales. This is not an advantage for Adidas due to the manufacturing of the
products is outside the UK and does not affect to increase employments in this
area. However, Adidas give a lot of work place for people in the stores located
around England. Other points to be cautious are the tax policies for companies in
the UK, environmental regulations and trade restrictions and tariff (Appendix 10).
Economic:
Nowadays, the world reception is affecting many companies worldwide.
Many consumers have to reduce their expenses due to the inflation and this fact
cause a decrease in sales. Moreover, the global devaluation is increasing the prices
of raw material. Adidas are also affected by the state of the economy in the UK, the
interest rate is not very stable and will make it hard for Adidas to plan ahead in
terms of budget (Data Monitor, 2011). Another important factor in the economy of
Adidas is how this company produce and manage manufacturing. This brand has
located their manufacturing factories in non-development countries where the
manpower of employees is considerably cheaper comparing with the UK (Mishra,
2010). This fact make that Adidas does not have control of the manufacture and
increase cost of distribution. However, for the business is difficult to produce their
products in England due to the large quantity of investment that they would need
to spend to relocate factories and employees in the UK (Appendix 10).
Socio-Cultural:
In the actuality, many people are concerning more about health, wellness
and exercise. This aspect is very positive for Adidas due to this new market could
be penetrated. Additionally, lose weight and fitness is one of the most popular
markets and Adidas could take this fact as an advantage to create more campaign
about how maintain healthy conditions for the body promoting their products.
Another socio-cultural issue is the environment, every organization that produce
products using the nature have to be aware of this aspect. There are many ways of
been friendly environment such as create recycled package and stop using real
animals. However, Adidas’s raw materials for football boots are taken from
animals and this is creating several problems with environmental campaigners.
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Another social point is that people are more concern about fashion and style when
they purchase sport products. Nowadays, consumers have more awareness about
how they look and they are more interested in brand names and reputations. That
is one of the reasons why Adidas should be more focused on fashion to create a
new perspective of their products and attract more customers (Appendix 10).
Technology:
It is not a secret for anyone that technology is one of the most important
aspects for any corporation. It is fundamental for any company to be update with
technology, innovation, new development of products, new materials, quicker
production machines, etc. These are factors that Adidas should take into
consideration. Furthermore, use Social Media to communicate advertisements and
promotions could be the most accruable way to get new markets and make
campaigns in a cheaper way. Since the last 2 years, people are more connected
through internet and all the existing applications for many devises. Particularly,
Adidas has created technologies for their products; specifically adiPRENE and
adiPRENE+ for clothes and Torsion for sport shoes. Moreover, this company has to
keep innovating about all the applications for each new devises in the market such
as smartphones and tablets (Appendix 10).
4. Objectives
4.1 Corporate objectives
o To achieve the position of ‘the best sports brand in the world offering the best
products and services’ (Adidas Group, 2010).
o To manage our wider social responsibilities as a multinational company
(Adidas Group, 2010).
o To create brands that the consumer believe in by being helped by these four
values of Adidas Group, ‘Performance, Passion, Integrity, Diversity’ (Adidas
Group, 2010).
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4.2 Marketing Objectives
o To increase sales of Adidas brands by 20% by 2013.
o To increase Adidas brands market share by 7% of the total market share by
2013.
o To generate Adidas brands revenue by 10% by 2013.
4.3 Communication Objectives
o To reposition the brand images of Adidas Original from ‘A casual sportswear
brand’ to ‘A casual high-fashion brand’ within the first 6months.
o To increase brand awareness by 30% by June 2012.
o To create brand interest and gain consumer preference of Adidas Original from
target group by 25% by June 2012 before London Olympic 2012 starts.
In the summer of 2012, London will organize world spectacular sports event,
London Olympic 2012. This will bring significant opportunities to all of sport-
related industries. Adidas will not be exceptional of it as Adidas is one of the
official partners of the Olympics. To maximize and utilize its positive effects and
opportunities that people aware of sports activities, Adidas repositioning
campaign will set up before Olympic starts on July 2012.
5. Targeting and Segmentation
5.1 Demographic Trends
Current trends display that men are more participant in sport that women;
around seven in ten men play in any sport compared to just over six in ten women
(Mintel, 2011). Men between the ages of 16 – 34 are the most ages that participant
in sport (Appendix 11). It can be said that men between the ages of 16-34 have the
highest consumption in the sportswear. With respect to social class the highest
participant in sport are the ABC1 categories (Appendix 12). Mintel (2011) stated
that C2s category is likely to be increasing for purchasing in sports clothing and
footwear to wear as leisurewear. In terms of geographical location Greater London
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and inner London are where sportswear is consumed at the highest rate (Hall,
2011).
5.2 Behavioral/ Psychographic Trends
Nowadays, the customers’ trend is more likely to be more fashionable and is
a primary driver in sale for sportswear industry (Mintel, 2011). Moreover, buyers
tend to aware in their health, for example, control body sharp and protected
disease. According to these trends, it is really useful for the sportswear market to
increase in sale. Adidas will apply these trends to be specific in its marketing
campaign.
5.3 Pen Profile/ The target audience
For Adidas target market in this repositioning will be both male and female
between the ages of 16-34. Social class ABC1C2 who are dwelling within the United
Kingdom are been the target audience. The reason why it select the whole of the
United Kingdom instead of focusing on Greater London and inner London are
expanding a target of customer and make more customer than only concentrate on
London owing to number one in market shares for Adidas. It will be targeting all
ethnics.
6. Positioning
In order to determine re-launching position of Adidas, the current positions
of Adidas and other competing brands in the market has to be considered.
As Adidas is well-established and highly-trusted sportswear brand
positioning second leader of this market in the UK, Adidas possesses variety of
product ranges from shoes, apparel, accessories with different concepts brands
lead by ‘Adidas Performance’ following by ‘Adidas Original’ and ‘Adidas Style’ in
revenue order. However, According to Mintel (2010), Adidas is perceived by
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consumers as ‘makes me confidence’ brand while Nike, which leads the market
with top market share, is depicted as ‘sets trends’ brand which represents their
performance of highly-fashionable sportswear. (Appendix 8) Adding to this, as it is
mentioned in the corporate analysis, Nike is perceived by consumers as the most
trusted and differentiated brand within other competitors. (See Appendix6)
Although, Adidas spends its budget for advertisement more than Nike in 2011, its
performance wasn’t perceived by consumers as much as Nike did. (Appendix 13)
In terms of tendency of customers, Mintel (2011) describes about consumer
trends in this market ‘Fashion over Function’ as more purchases are made by
casual wear rather than sports purposes. In this growing market, embracing
fashion clothes into sportswear seems to be key point of success in terms of
expanding its market to the massive potential target. Simultaneously, as dominant
trends of the current market, amount of the channel where they purchase these
products is changing from retailer shops to internet shops. This fact cannot be
avoided by any of those corporations who seek to generate consumers and
consolidate their businesses.
To sum up, in order to compete with Nike, the re-launching strategy of
Adidas would be determined that to improve brand image more fashionable and
differentiate with Nike by the use of internet. The new slogan ‘Impossible is
Nothing, Fashion is Everything’ represents both company spirits and repositioning
concept. Therefore, this campaign will take part in social media such as Facebook
which is new campaign platform to seize massive potential customers who are
hidden behind it.
7. Communication Strategy
For companies is extremely important to create an accurate communication
strategy to aim and improve the way of how the corporation shares information
and find the needs of their clients. To have knowledge of the principal objectives of
the company and communicate effectively it is necessary to design a distinctive
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communication strategy depends on each case (Anonymous, 2011). The finality of
create this strategy for Adidas is to improve the sales of this brand giving a new
image of fashionable and trendy through the promotional mix. It can be said that
for this campaign would be used two ways of communications:
1. Co-branding and new fashion and popular retailer (Fusion).
Fusion with a popular and well-known brand: H&M – Limited Edition
2. Advertisements – New Celebrities Image
Tools:
o Magazines / Sales Promotion Techniques (Bar Codes & Discount Coupons)
o Cinema (Odeon)
o Facebook Dress-up Game
7.1 Creative Brief
7.1.1 Co-branding/Collaboration – Fusion “Adidas and H&M”
Target Audience: Males and Females (ages: 16 - 34) – Class: A, B, C1, C2
Slogan: “Impossible is Nothing, Fashion is everything”
Timeline: 6 weeks (30th June - 30th September 2012)
This campaign it will be placed one month in a half before and after the
Olympic Games 2012 in the UK. The reason of this timeline is due to there will be
more people interested in sports, exercises and look good for this event. The
advertisements and promotions would be focused on sports and that is something
that Adidas have to approach. Adidas is also supporting Olympic Games 2012 as
official commercial partner to gain more power in the market share of UK (Hall,
2011).
Objectives: The main objective of this campaign is to improve the perception of
Adidas brand as fashionable and trendy for consumers who wants to look good at
the time when they go exercise. This promotion will lead to consumers think in
Adidas as trendy and comfortable clothes in affordable prices.
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“Communications based co-branding involves the linking of two or more existing
brands from different companies or business units for the purpose of joint
communication. This type of co-branding can take the form of recommendation”.
(Jobber, 2007)
Plan:
This strategy is one of the most important parts of the campaign. This
fusion consist in use this brand store as a retailer and at the same time to promote
the Adidas products as a fashion brand. In the past, this brand, H&M, make an
agreement with the label such as Versace and Jimmy Choo to sell their products in
the store and also be promoted in H&M web page. According to Rhiannon from
ManchesterFashion.com (2011), “H&M was responsible for an 8% increase in sales
for Jimmy Choo, in November 2010”. This strategy has the objective of promote
Adidas as a fashion brand using the popular high street chain H&M. This
collaboration is beneficial for both parties H&M and Adidas due to H&M can be
offering high end designs at high street prices and Adidas could promote their
brand as trendy and stylish clothes.
H&M is one of the most popular brands in the UK with a good overall
reputation of quality products in terms of prices and value. Another important
reason of collaborate with this brand is that their products are extremely
fashionables and trendy and this is the main point of this campaign of marketing
communication. This brand also has sportswear clothes and shoes in their lines;
therefore it would be easier to locate Adidas products in this section of the store.
This company, H&M, has had experience as co-branding and short time retailer
since it has previews practice on this kind of promotions with other premium and
top brands in the market. In the past few years, this company makes fusion with
some important and prestigious brands of the market such as Jimmy Choo and
most recent Versace, which according with some statistics of the fashion world; it
was well accepted for consumers in both sides.
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Mandatory elements:
There are some regulations for this collaboration:
1. The clothes line designed for H&M must be a Limited Edition (3 month).
2. The clothes design must be different to the lines sold on Adidas stores.
3. Promotions and Discount coupons do not match with clothes from H&M
stores.
4. H&M web page must show all the Adidas products offered in this
promotion, with option of shop online.
5. It will be placed an attractive Adidas advertisement in the home page of
H&M to stimulate the purchase of customers.
Budget:
The budget for this campaign it important to know that there are two parts
interested in the profits of this collaboration. For this reason the both part argue
that:
Clothes – Limited Edition: The design for this limited edition will managed
only for Adidas Group; raw materials, designers, manufacture and distribution. In
the other hand, it is important to have in a count that for Adidas is not complicated
to create a new line for this promotion due to, this company already has their own
designers, materials, manufacture and distribution (in India).
The creation of the advertisement web page would be covered for both
parts and using both sites for the promotion. The main part will be placed in H&M
page where will be a shopping cart option to purchase these items. However, it
cannot be increased cost for this part due to H&M is owner of a sophisticated web
page with this type of option; the point is to locate the new line of Adidas products
on this page.
To finalize the budget for this part of the campaign “Impossible is nothing,
Fashion is Everything” – Co-branding, the celebrity endorsement will be two of the
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most famous people of this days; Brad Pit and Angelina Jolie. This aspect and cost
will be explained bellow in the next section.
To sum-up, the budget for co-branding is detailed in the chart below:
Cost in PoundsDesign 250.000,00Production 500.000,00Distribution 800.000,00Web Page Design 150.000,00Celebrities 600.000,00Total 2.300.000,00
Figure 1
7.1.2 Integrated Marketing Communication
According to Fill (2009) in terms of brand awareness, advertising and
public relations are effective tools, similarly, sales promotion personal selling and
direct marketing are useful for increasing the rate of purchase. Considering this
view, in this section various media tools will be used; the main driving force is the
usage of Brad Pitt and Angelina Jolie for the new campaign, beside this, magazines,
social media tools such as Facebook and YouTube, TV commercials and
competitions will be used.
Message
Nowadays people want to be seem as fashionable even when they make
exercises on the other hand they want to feel comfortable when they wear a
fashionable sportswear product (Keynote, 2011). Adidas has already has a sub-
brand, called Originals, for fashionable sportswear but new repositioning objective
is a little different from the purpose of Originals. To explain this further, Originals
aims that people can be seen fashionable and fell comfortable and casual when
they wear sportswear, but the new repositioning purpose is that people can be
seen fashionable even when they make exercise or prepare a competition or
participate in a Olympics. Thus the main message of the repositioning process is to
spread that the sportswear trend is being fashionable as well as functional.
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Objectives
o To spread the slogan “Impossible Is Nothing Fashion is Everything” in UK
before the start of the London Olympics.
o To increase the awareness of the brand %30 during the time of London
Olympics from the beginning of the July to end of August in UK.
o To spread the message “People can be seen fashionable even when they
make exercise” in UK.
o To increase Brand Loyalty 10% to keep market share during the London
Olympics in UK.
o To reach new customers during the Olympic Games therefore to increase
market share by %7
Celebrity Endorsement
According to Fill (2009) there are some potential problems with use of
celebrities. One of them is suitability of brand image and the celebrity is a big
concern, the other one is there is a danger that the audience can remember just the
celebrity instead of brand and its message. Although these potential problems are
known, Adidas will use some celebrities. Because it can be argued that using
celebrity is one of the most effective ways to establish credibility so Brad Pitt and
Angelina Jolie will be the advertisement face for Adidas. Brad Pitt is one of the
most famous actor in the world and his body and charisma is suitable for the
Adidas‘s new image. Similarly Angelina Jolie is one of the most beautiful and
talented actress in the world and there are a lot of woman who want to wear like
her. Moreover they are a couple so they can be used also for a family concept.
Communication Tools
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TV / Cinema Commercials
Plan: A series of 30-second commercials can be used to show that Angelina Jolie
and Brad Pitt wear Adidas sportswear and they make some exercises. Even they
make exercises they are looking fashionable and stylish. For this purpose the most
popular TV channels (as it can be seen in the figure) can be used such as BBC, ITV,
Channel 4, Five and BskyB. Similar to this, it is generally known that people are
more careful of the advertisement which published on the cinema. Thus, cinemas
will be used for the same purpose and people will watch their Stars Angelina Jolie
and Brad Pitt in the commercial as they are watching a film.
Schedule: Starting from the beginning of the July to end of August. This time
includes 1 month before the London Olympic Games and one month after the
Olympic Games. For TV two most popular TV channels BBC and ITV will be used
for two times in a day at the prime time for 30 seconds.
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Figure 2 Source: http://www.barb.co.uk/report/weeklyViewingSummary
Print Media / Magazines
Plan: For printed advertisements of the new campaign instead of using the top
sellers in general it is better to use suitable magazines for the target audience.
Adidas will use the top magazines related to fashion, style, sports and lifestyle in
the UK. These will be:
Men’s Health: The magazine is the top selling men’s lifestyle health and
fitness magazine, an excellent subscription for any man concerned with his
health, fitness relationships and diet.
Cosmopolitan: It is the magazine for young women who don't want to miss
out on all of the essential relationship features, the latest health news and
the latest fashion trends.
Vogue: The Magazine sets trends. Used as a point of reference within the
fashion industry, it is filled with insightful interviews with leading
designers, runway reviews, practical style tips and must-have buys. The
target audience is generally women.
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Esquire: For the very best celebrity features and interviews, health,
fashion, sport, thought-provoking writing and top quality photography in a
stylish, accessible package. Esquire also brings its customers culture, food,
business and technology, books, films and the arts. The target of the
magazine is man.
Schedule: Starting from the beginning of the July to end of August. This time
includes 1 month before the London Olympic Games and one month after the
Olympic Games.
Online Media / Social Media
Plan: Social Media is a type of online media that expedites conversation as
opposed to traditional media, which delivers content but does not allow
readers/viewers/listeners to participate in the creation or development of the
content (Ward, 2010, cited in findarticles, 2010). Thus Adidas will try to convince
customer to take in part of the repositioning campaign by social media tools.
Facebook: There will be a Facebook application which allow the customer to
create own doll and dress the doll with the new fashionable products of the Adidas.
They will share their dolls with their friends.
Competition on Facebook: Also there will be a competition about the dressed
dolls on the application, the users will save their dolls for election and due to the
result of the election there will be one winner who will get the chance to go for a
dinner with Angelina Jolie and Brad Pitt.
YouTube: The commercials not only will publish on TV but also they will publish
on YouTube, before the most popular video the Adidas commercials will be shown.
It will help to reach the objective in that to increase brand awareness.
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Schedule: Starting from the beginning of
the July to end of August. This time
includes 1 month before the London
Olympic Games and one month after the
Olympic Games.
Sales Promotion
Plan: The main objective of sales
promotion is to encourage the target
audience to buy a product. Moreover it can be argued that sales promotion is one
of the most effective ways to reach new customers (Fill, 2009). To increase the
market share of Adidas by 7% the company needs to reach new customers.
For this reason Adidas will use a QR Barcode-Promotion (an example of QR
Code in the figure).There will be some QR Codes on the YouTube videos, TV
commercials and Magazines, customers who can capture the code by their mobile
phones or tablet pcs can get some discounts during the London Olympic Games.
Schedule: During the London Olympic Games (27 July to 12 August 2012) because
of the high cost.
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Figure 3 Source: http://2d-code.co.uk/adidas-qr-code/
8. Total Budgeting of the Campaign
Celebrity Endorsement:
Venus Williams, tennis player and Wimbledon champion has signed a five-
year $40 million contract with sportswear manufacturer Reebok International Inc.
(Chillibreeze, 2011). Considering this Angelina Jolie and Brad Pitt will cost £2.6
million
TV / Cinema Commercials:
BBC: According to BRAD (2011a) BBC costs for primetime US $3360 per day, thus
for full schedule it will costs 3360*7(days) *8 (weeks) = $188160 = £125,440
ITV: According to BRAD (2011b) ITV costs for primetime £5415 per day, thus for
full schedule it will costs 5415*7*8= £303,240
TV Expenditures = 125,440 + 303,240 = £428,680
Print Media / Magazines:
Men’s Health: For third class out of five class, advertisement cost £12,310 per
pages thus for two months schedule it will costs £12,310 * 2 = £24,620 (BRAD,
2011c)
Vogue: For third class out of five class, advertisement cost £24,400 per pages thus
for two months schedule it will costs £24,400 * 2 = £48,800 (BRAD, 2011d)
Cosmopolitan: For third class out of five class, advertisement cost £21,945 per
pages thus for two months schedule it will costs £21,945 * 2 = £43,890 (BRAD,
2011e)
Esquire: For third class out of five class, advertisement cost £11,850 per pages
thus for two months schedule it will costs £11,850 * 2 = £23,700 (BRAD, 2011f)
Magazines Expenditures: 24,620 + 48,800 + 43,890 + 23,700 = £141,010
22
Online Media / Social Media
Facebook: Creating a Facebook application is free on the other hand there is no
sufficient data about publishment of the application on the website of the
Facebook.
YouTube: For personal purpose there is no charge to publish a video on youtube
but there is no suddicient data about publishment of corporate advertisements.
Co-Branding
As mentioned before, £2.3 million will be spend for Co-Branding activity with H&M
on design, production, distribution, web page design and celebrities.
Co-Branding Expenditures: £2.3 million
Total Budget: 2.6 million + 428,680 + 141,010 + 2.3 million = £5469690
Approximately £5.5 million.
9. Evaluation and control
This stage is one of important part of marketing campaign. According to Fill
(2009) stated that the role of evaluating can prove that the performance of the tool
and media used are followed by the communication objective that have set in the
first place. Moreover, marketing mix and budget have been applying in effective
way.
9.1 Pre-testing
The pre-testing will help the Adidas marketing campaign to evaluate the
result of all tools and media that are going to apply for its to more efficient and the
least mistake that is going to happen. It will apply focus group to be a pre-testing
for estimate the overall of marketing mix that it will happen. This method can help
to obtain the opinion and perception of customer to improve in some plan in
23
appropriate way. It will be conducted by 8 members in each group that select from
target audience. The total number of focus group is 6 groups.
9.2 Post-testing
In this stage will measure the effectiveness of a campaign result in different
areas of marketing tool and media used.
Advertising: Sales test and tracking studies are applied to be a measurement in this
campaign. In term of Sales test can help Adidas to know the effectiveness of
advertising by increasing or decreasing the level of sale and market share during
and after launching campaign. With respect to tracking studies will conducted by
interviewing 300 user and non-user of Adidas to indicate the awareness of
advertising and brand. Social media can be measured by a number of click to
access in Adidas’s campaign and also how long customer spend time in that social
media page.
Sale promotion: The co-branding of Adidas and H&M and OR code can be
measured by a number of sales in this promotion and how customers react to this
co-branding and this barcode- promotion.
Public relations: The impact of using Brad Pitt and Angelina Jolie will be evaluated
through the effect from the main media (TV, cinema, magazines, internet, etc).
Moreover, it can be evaluated by feedback of customer for purchasing a product of
Adidas that wearing by both of modeling.
10. Conclusion
In conclusion, the communication plan presented above has the aim to
increase Adidas brand awareness and products sales by changing image of Adidas
as a ‘fashionable’ clothes and not only for practical use in order to be ‘the best’
brand in the market. The key point of this campaign is based on the research
results such as remarkable buyer behavior that they buy sportswear as a fashion
24
purpose. By co-branding with H&M and promoting Brad Pit & Angelina Jolie as
new models of Adidas promotion, conventional Adidas image that is perceived by
consumers would be overturned to the aim image. Simultaneously, this campaign
would lead to increasing awareness and considerably interests in see Adidas as a
fashionable -trendy brand and also replacing Nike in the market share as the
number one on sportswear in the UK.
25
Reference List
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(Accessed: 10 December 2011)
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(Accessed: 10 December 2011)
26
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(Accessed: 10 December 2011)
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27
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clothing-%26-footwear/chapter/6/competitor-analysis?highlight=sportswear>
[Accessed: 7th December 2011]
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28
Appendixes
29
Appendix 1:
‘Closing and footwear purchased in the last 12 months, by reason for purchase, June 2011’ (Mintel, 2011)
Appendix 2:
‘Best and worst case forecast value sales of sports clothing, 2006-16’ (Mintel, 2011).
30
Appendix 3:
Trends in attitudes towards advertising and shopping on the internet, 2006-10
Base: adults aged 15+ (Mintel, 2011)
2006 2007 2008 2009 2010 % point change
% % % % % 2006 - 2010
I tend to buy products from companies who
sponsor sports events and teams
6 6 6 6 6 -
I’m tempted to buy products I’ve seen advertised 26 25 24 25 25 -1
To do my shopping by internet makes my life
easier
17 20 21 25 34 17
Appendix 4:
Leading Suppliers of Sports Clothing and Footwear to the UK by Country of Origin and
Global Turnover ($, € and £), 2010
Country of Origin † Turnover
Company
Nike Inc. US $19.01bn
31
Adidas Group Germany $10.38bn
PUMA Germany €2.62bn
New Balance US $1.65bn
Pentland Group PLC UK £1.13bn
Hi-Tec Sports PLC UK £101.6m
Regatta Ltd UK £80.5m
† — global turnover for latest full financial year, see profiles for further details
(Keynote, 2011)
Appendix 5:
Adidas Group — Global Sales by Brand (€m), 2007-2009
2007 2008 2009
Adidas 7,113 7,821 7,520
Reebok 1,831 1,717 1,603
TaylorMade-adidas Golf 804 812 831
Rockport 291 243 232
Reebok-CCM Hockey 210 188 177
Other 50 18 18
Total 10,299 10,799 10,381
(Keynote, 2011)
Appendix 6:
Adidas’s profits from 2006-2009
Year End 31/12/09 31/12/08 31/12/07 31/12/06
32
Pre-Tax Profits (£000) 11,739 16,217 51,395 33,220
% change year-on-year -27.61 -68.45 54.71 -
Profit Margin (%) 2.85 4.06 15.64 11.21
Operating Profit (£000) 11,894 16,812 20,601 32,149
(Keynote, 2011)
Appendix 7:
‘Leading Suppliers of Sports Clothing and Footwear to the UK by Country of Origin
and Global Turnover ($, € and £), 2010’ (Key note, 2011)
Country of Origin † Turnover
Company
Nike Inc US $19.01bn
adidas Group Germany $10.38bn
PUMA Germany €2.62bn
New Balance US $1.65bn
Pentland Group PLC UK £1.13bn
Hi-Tec Sports PLC UK £101.6m
Regatta Ltd UK £80.5m
Appendix 8:
‘Attitudes, by sports clothing and footwear brand, June 2011’ (Mintel, 2011)
33
Appendix 9: SWOT Analysis
Appendix 10: PEST Analysis
34
Appendix 11:
Most popular sports and physical activities participated in, by age, June 2011
Base: 2,000 internet users aged 16+
(Mintel, 2011)
35
Appendix 12:
Sports and physical activities participated in, by social grade, June 2011 - Base:
2,000 internet users aged 16+
(Mintel, 2011)
Appendix 13:
‘Main monitored media advertising spend on sports/outdoor clothing and
footwear, by top 15 advertisers, 2006-10’ (Mintel, 2011)
36
