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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

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.

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 4

10. Conclusion1. 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 founders 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 mothers 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 Frt, 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 worlds second largest sports company in the sporting goods industry in terms of annual sales, which is more than 10bn. Adidas consist 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 Medias 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 6

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). 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 years 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. 7

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 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 customers needs. The innovation and design is focused in help athletes of every skill levels 8

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 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 9

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, Adidass raw materials for football boots are taken from animals and this is creating several problems with environmental campaigners. 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 10

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

To achieve the position of the best sports brand in the world offering the best products and services (Adidas Group, 2010). To manage our wider social responsibilities as a multinational company (Adidas Group, 2010). 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).

4.2 Marketing Objectives


To increase sales of Adidas brands by 20% by 2013. To increase Adidas brands market share by 7% of the total market share by 2013. To generate Adidas brands revenue by 10% by 2013.

4.3 Communication Objectives

To reposition the brand images of Adidas Original from A casual sportswear brand to A casual high-fashion brand within the first 6months. To increase brand awareness by 30% by June 2012. 11

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 that people and utilize of its positive effects and opportunities aware 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 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 12

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 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 13

its budget for advertisement more than Nike in 2011, its performance wasnt 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 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 14

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:

Magazines / Sales Promotion Techniques (Bar Codes & Discount Coupons)

Cinema (Odeon) 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 15

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. 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 16

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.

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

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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 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 Pounds 250.000,00 500.000,00 800.000,00 150.000,00 600.000,00 2.300.000,00

Design Production Distribution Web Page Design Celebrities Total

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 18

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. Objectives To spread the slogan Impossible Is Nothing Fashion is Everything in UK before the start of the London Olympics. 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. To spread the message People can be seen fashionable even when they make exercise in UK. To increase Brand Loyalty 10% to keep market share during the London Olympics in UK. To reach new customers during the Olympic Games therefore to increase market share by %7 19

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 Adidass 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

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. 20

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.

Figure 2 Source: http://www.barb.co.uk/report/weeklyViewingSummary

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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: Mens Health: The magazine is the top selling mens 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.

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. 22

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. 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

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Plan: target

The

main is it to can

objective of sales encourage be argued the that new to buy a product. one of the most reach 2009). To increase of Adidas by 7% needs to reach

promotion Moreover

audience

sales promotion is effective ways to customers the (Fill, the market share company new customers.

Figure 3 Source: http://2d-code.co.uk/adidas-qr-code/

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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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: Mens 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) 25

Magazines Expenditures: 24,620 + 48,800 + 43,890 + 23,700 = 141,010 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.

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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 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 Adidass 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, 27

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 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.

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Reference List Adidas Group, (2010). Sustainability Report 2010, [Online] Available at: <http://www.adidas-group.com/en/SER2010/Default.aspx> [Accessed: 7th December 2011] Adidas Group (2011a) 60 years of adidas- the stories that still inspire us today Available at: <http://www.adidasgroup.com/en/ourgroup/assets/History/pdfs/60Yea rs_HistoricalOverview_e.pdf > [Accessed: 10 December 2011]. AdidasGroup (2011b) The story of logoAvailable at: <http://www.adidasgroup.com/en/ourgroup/assets/History/pdfs/logohi story-e.pdf > [Accessed: 9 December 2011]

Adidas, (2011) Customise: mi create your own Available at: http://shop.adidas.co.uk/miadidas/Main.action [Accessed: 9 December 2011]. Anonymous, (2011), Development a communication Strategy, Available at: http://www.dhacommunications.co.uk/, [Accessed: 8th December 2011]

BRAD (2011a) BBC World News [Online]. Available at: http://www.bradinsight.com/bradv2/Member/TitlePage.aspx? titleId=21118 (Accessed: 10 December 2011) BRAD (2011b) ITV [Online]. Available at: http://www.bradinsight.com/bradv2/Member/TitlePage.aspx? titleId=106300 (Accessed: 10 December 2011)

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BRAD (2011c) Mens Health [Online]. Available at: http://www.bradinsight.com/bradv2/Member/TitlePage.aspx? titleId=15960 (Accessed: 10 December 2011) BRAD (2011d) Vogue [Online]. Available at: http://www.bradinsight.com/bradv2/Member/TitlePage.aspx? titleId=10428 (Accessed: 10 December 2011) BRAD (2011e) Cosmopolitan [Online]. Available at: http://www.bradinsight.com/bradv2/Member/TitlePage.aspx? titleId=2551 (Accessed: 10 December 2011) BRAD (2011f) Esquire [Online]. Available at: http://www.bradinsight.com/bradv2/Member/TitlePage.aspx? titleId=3442 (Accessed: 10 December 2011)

Chililibreeze (2011) Impact of Celebrity Endorsement on a Brand Available at: http://www.chillibreeze.com/articles/Celebrityendorsement.asp (Accessed: 15 December 2011)

Datamonitor (2011) adidas AG: Company Profile [Online]. Available at: <http://content.ebscohost.com/pdf27_28/pdf/ddd/dmhco/abc572794ff3-4592-a48c-17d2e6b59c0f.pdf?T=P&P=AN&K=ABC57279-4FF34592-A48C17D2E6B59C0F&S=L&D=dmhco&EbscoContent=dGJyMNHr7ESep7Y 4wtvhOLCmr0mep7RSrqu4Sq %2BWxWXS&ContentCustomer=dGJyMPGnr0%2BwqLdRuePfgeyx4I3 m> (Accessed: 10 December 2011)

Fill, C. (2009) Marketing Communications: Interactivity, Communities and Content, 5th Edition. Italy: Pearson Education Limited.

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Findarticles (2010) Using social media to increase advertising and improve marketing, Available at: <http://findarticles.com/p/articles/mi_m1TOL/is_15/ai_n56561875/ > (Accessed: 29 November 2011). Hall, J. (2011) London 2012 Olympics: Adidas aims to beat Nike into second place at Games, The Telegraph, 29 May[Online]. Available at: <http://www.telegraph.co.uk/finance/london-olympicsbusiness/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nikeinto-second-place-at-Games.html> (Accessed: 16 December 2011).

Jobber, D. (2007) Principles and Practice of Marketing 5th edition copyright 2007 by Mc Graw Hill, Chapter 3, Co-branding, pg 356.

Key note, (2011) Sports Clothing & Footwear Market Report 2011, Available at <http://www.keynote.co.uk/marketintelligence/view/product/10412/sports-clothing-%26footwear/chapter/6/competitor-analysis?highlight=sportswear> [Accessed: 7th December 2011]

Key note, (2010) Market Review 2010, Available at <http://www.keynote.co.uk/marketintelligence/view/product/2361/sports-market?medium=html > [Accessed: 7th December 2011]

Mintel, (2011) Sports Clothing and Footwear - UK - August 2011, Available at: <http://academic.mintel.com/sinatra/oxygen_academic/search_results /show&/display/id=545461> [Accessed: 7th December 2011]

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Mishra, D. (2010). Corporate Strategy for Adidas Group, School of Management. University of Purdue. Rhiannon, J. (2011) Versace for H&M, Fashion News, Available at: http://www.manchesterfashion.com/, [Accessed: 8th December 2011]

Appendixes

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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).

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Appendix 3: Trends in attitudes towards advertising and shopping on the internet, 2006-10 Base: adults aged 15+ (Mintel, 2011)

I tend to buy products from companies who sponsor sports events and teams Im tempted to buy products Ive seen advertised To do my shopping by internet makes my life easier % point change

2006 % 6 26 17

2007 % 6 25 20

2008 % 6 24 21

2009 % 6 25 25

2010 % 6 25 34

2006 - 2010 -1 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 Company Nike Inc. Adidas Group PUMA US Germany Germany 34 $19.01bn $10.38bn 2.62bn

Turnover

New Balance Pentland Group PLC Hi-Tec Sports PLC

US UK UK

$1.65bn 1.13bn 101.6m 80.5m

Regatta Ltd UK 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 Adidas Reebok TaylorMade-adidas Golf Rockport Reebok-CCM Hockey Other Total 7,113 1,831 804 291 210 50 10,299 2008 7,821 1,717 812 243 188 18 10,799 (Keynote, 2011) 2009 7,520 1,603 831 232 177 18 10,381

Appendix 6: Adidass profits from 2006-2009 Year End Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) 31/12/09 31/12/08 11,739 -27.61 2.85 11,894 31/12/07 16,217 -68.45 4.06 51,395 54.71 15.64 31/12/06 33,220 11.21 32,149

16,812 20,601 (Keynote, 2011)

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Appendix 7: Leading Suppliers of Sports Clothing and Footwear to the UK by Country of Origin and Global Turnover ($, and ), 2010 (Key note, 2011) Company Nike Inc adidas Group PUMA New Balance Pentland Group PLC Hi-Tec Sports PLC Regatta Ltd Country of Origin US Germany Germany US UK UK UK Turnover $19.01bn $10.38bn 2.62bn $1.65bn 1.13bn 101.6m 80.5m

Appendix 8: Attitudes, by sports clothing and footwear brand, June 2011 (Mintel, 2011)

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Appendix 9: SWOT Analysis

Appendix 10: PEST Analysis

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Appendix 11: Most popular sports and physical activities participated in, by age, June 2011 Base: 2,000 internet users aged 16+

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(Mintel, 2011) Appendix 12: Sports and physical activities participated in, by social grade, June 2011 - Base: 2,000 internet users aged 16+

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(Mintel, 2011) Appendix 13: Main monitored media advertising spend on sports/outdoor clothing and footwear, by top 15 advertisers, 2006-10 (Mintel, 2011)

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