In this assignment, we will look into contemporary issues in marketing and consumer behavior of Adidas. In the following sections, there are two main areas in this context are discussed. Firstly, the contemporary issues in marketing strategy of Adidas are discussed and then followed by a detailed discussion on the consumer behavior towards Adidas is presented.
Adidas is a brand that stands for quality in all sectors of sport around the world. It has started at the year 1920 by Adi Dassler, the founder of Adidas when he started making the first Adidas shoe. Initially, the company was known as “Adolf Dassler adidas Sportschuhfabrik”. The trademark and the three famous white stripes have been founded in 1948. Since then, Adidas has been competing hard to be the leader globally in terms of providing excellent products specifically for sports (Holmes, 2006). Presently, Adidas has a variety of product choice, from sporting shoes to apparel. However, the core products are still for running shoes, football shoes and also basketball shoes. Adidas expanded fiercely when the merging of Adidas and Reebok, another brand leader in sports shoes and apparel Currently, Adidas has surplus 38,000 employees globally with more than 170 subsidiaries in the market (Fong, 2008).
Contemporary Issues in Marketing of Adidas
As defined by the American Marketing Association marketing is “the activity, set of institution, and processes for creating communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large” (Kotler, 2004). The modern way of marketing at present focuses on the relationship marketing that prioritize the consumers, the business marketing that benefits the organization and finally the social marketing that focuses on the society at whole.
Issues with e-commerce. There are numerous ways of how express and effective marketing can be done. By using e-commerce, is one of the main tools in accomplishing it and Adidas, has no exception as well. E-commerce is a name used to explain the broad collection of marketable actions carried out by electronic way that allow the buying and selling transaction with no restrictions of geographical borders. The Internet gives an environment in which computerized utility can take on important business dealings with small or no physical movement (Fong, 2008).
Adidas’s advance to e-commerce is moving rapidly over the years. Consequently, Adidas persistently followed the global innovation and energizing products to set apart itself from other competitors such as Nike and New Balance. Adidas also understand that in turn to be victorious to e-commerce, it has to be completely dedicated to this project. The creation of Adidas.com is a main approach to depict the customers. Even though, there are apparent benefits in accomplishing e-commerce over the Adidas.com there are also possible obstruction. The main obstruction of e-commerce is the technological obstacle varying from transportation to safe internet protection. A constant subject of question that encounters the e-commerce business is the safe internet environment of security (Janoff, 2006). Today, it is so common that our emails and websites are being hijacked. For this case, should the site of Adidas.com have been hijacked, the information related to the payment details of the customers will be in chaos. Therefore, Adidas have to ensure take action in ensuring the security system is rock-solid (Cassidy, 2006).
Furthermore, making a successful business via e-commerce business requires a convincing marketing strategy. A successful e-commerce business will incorporate new and evolving plans with best practices of tactical planning. An e-commerce business must be able to adapt to changes in the market that is moving towards modernization in technology that may impact its online process and consumer rapport (Kotler, 2004). Besides that, a technical expertise of Adidas.com must be able to resolve issues immediately at any point of time. It is also important to have continuous improvement to run and maintain the website for the east of customers. The other challenge is to have a global page that will be the likings of all customers around the whole. Some of the online customers will find flashes, fancy graphics or animation but some other majority may like it. Thus, by using a webpage alone, Adidas might not be able to please very customer of theirs. As a result to this varied consumer taste, Adidas have to invest in a few different ways of approaching customers globally (Fong, 2008).
Creating Strong Brand Culture. Branding is vital for organizations that wish to make a notable impact, as well as grow and maintain a large market share in today’s competitive business environment (Kotler, 2004). A reputable brand is one of the key players for a customer to decide on the purchase. Without doubt, Adidas has an encouraging brand image and merchandise and services that are well-designed and applicable in order to draw the attention from new customers. Having obtained new customers, Adidas have to convey on their trademark promises and provide an affirmative brand experience to retain them. Adidas has indeed identified the company as a brand leader in sports apparel, in particularly running shoes (Fong, 2008).
The issue here for Adidas is to keep up the identity is has created decades ago. With the close competition from another sporting giant namely Nike besides the challenge from an emerging of new sporting brand such as New Balance, Adidas have to speed up the way forward to maintain the highest standard of the brand. Adidas has an extensive demand to a large demographic of customers, from athletic people to hip-hop dancers. They’ve created a more ‘chill’ feeling around their merchandize that makes people feeling comfortable but trendy at the same time. Adidas have a slogan of ‘Impossible is Nothing’ and it has been a big promotion that appeals to ordinary customers from the market. Moving on, another major approach that Adidas did was being the official sponsor for the previous FIFA World Cup 2006 which was held in Germany (Holmes, 2006). The method of targeting the world of football during World Cup means billions of spectators watching the sponsor and therefore there would be billions of are exposed and aware of Adidas (Holmes, 2006).
Another challenge is also for Adidas to continue develop on the diverse product selection globally. As usual, all customers want to be spoilt by the selection of products. From an athlete searching for the greatest available running shoe, or the laid-back customers searching for the new style all of them want choices. With that, Adidas must continue to expand the range of product to secure the customer’s loyalty (Janoff, 2006). On the other hand, Adidas will also have to design a more accomodating supply chain pace and aletness are key to be ahead in the competition along with Nike. Being dedicated to experience the wide choices of customer requirements by ensuring product availability in the accurate size and colour, providing game-changing technical modernization and also the hottest trend to the utmost quality standards with the shortest lead time (Holmes, 2006).
Consumer Behavior of Adidas
According to Kotler (1994), “consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people needs”.
Impossible is Nothing. For Adidas, the consumer behavior that involved is on the consumer behavior with its popular “Impossible is Nothing” campaign. It is the fundamental note of a worldwide brand name movement that Adidas launches to lift the position Adidas shares with athletes around the globe. The international trademark of the campaign sets the yearning to provide the impossible possible, to shove consumers further, to exceed limits and to smash new position. The movement shows the wealthy established of Adidas athletes times of yore and currently, together with the supreme of all point, boxing legend Muhammad Ali, then the long distance runner such as Haile Gebrselassie, the famous football player David Beckham and also the popular NBA star Tracy McGrady (Cassidy, 2006).
Football Icon. During the FIFA World Cup 2006 in Germany, Adidas launched the innovative PredatorPulse™, which is the greatest football boot in the history, therefore emphasizing its place as the number one brand name in football (Janoff, 2006). The new Predator® football boots attribute the innovative PowerPulse™ equipment. This technology is based on a straightforward standard previously used in the manufacturing of tennis rackets and golf clubs: best possible delivery of the group. The Predator®, is the world’s best selling football boot and is certified by a few of the world’s best players such as the famous FIFA World Player of the Year Zinédine Zidane, and also famous players such as David Beckham, Raúl, Michael Ballack, Kaká and Rui Costa. Also in April 2008, Adidas started on the football campaign for 2008 in Germany. With that the football fans around the world that wanted to follow the trend of the football players of all time. As to that, this has significantly changed the buying behavior of customer that prefers Adidas, similarly to their football icon (Janoff, 2006).
Hence, all the emphasize on the football boot has definitely changed the youth’s buying behavior towards branded sports shoes, different consumers have got different decision making process. The buyer’s ultimate goal is to buy the product of qualitative, quantitative with low/best affordable price (Janoff, 2006).
The Buying Power of Women. The outline of expenditure has changed during the last five years. Women have a much bigger power in all buying than was considered previously and women are obtaining further and added ability in these matters. Women have even entirely taken over several of the typically men acquisition. Reason being is women do not only buy for themselves, they also make the most of procurement for their family members. Women are contributing for about eighty percent of personal consumer spending (Cohan, 2001) and therefore they can no longer be unnoticed by a product of Adidas. Knowing this, Adidas has expanded their collections that resemble more feminist, to attract the women customers. The move of Having Henrik Larsson or David Beckham as an advertisement name for Adidas football boots actually creates bigger sales of football shoes. However, this is unlikely for women, for the reason that Victoria Svensson wears a certain shoe it does not mean that women will want to purchase the shoe and consequently less women profiles are signed. Women in common look at additional features than just the basic capability of a particular product. Women want to achieve an iconic status, a way of life style and the sales person selling the shoe has to be more than just being excellent at providing quality sport related apparels or equipments. Hence, Adidas has been continuously develops and innovate new products to tailor suit the trend and taste for women. Presently, Adidas has also increase the range to toiletries, namely shower gels and perfumes. By doing that, Adidas has been successful in obtaining the market share from the women and to be the leader in the sporting brand in the industry (Janoff, 2006).
The excellent commercial movement used by the Adidas as argued in this report presents the essential use of consumer behaviour in marketing. In this situation, the happening as well as the goods of the Adidas brand name was successfully communicated to the potential customers. Adidas, as a leading player in the business of sporting goods have effectively used the surrounding cues of the FIFA World Cup Series (Cassidy, 2006) into their marketing method for its 2006 episode in Germany. Adidas’s goal in leading the sporting products business with brand name built upon a love for sports and a sporting lifestyle has been successful and growing for many years to come.
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