Case Study on Brand Management

Presenters : Yatin Parab, Venika Agarwal, Vibhav Mohan & Udaykumar Sengunthar

GROUP 1

The Brand In Hand :Mobile Marketing At “adidas”

Contents

Company’s Profile and its Journey1

Cut through the Clutter, Role of Digital Media and Brand in Hand – Mobile Marketing

2

Success Stories of Digital Marketing and Road to Lisbon : Mobile Marketing

3

Key Market and US Scenario4

Way Ahead and Viewpoints5

Impossible is Nothing

Founded by Adolf Dassler in 1949Became an international brand in 1974Outsourced production in1990 to concentrate on marketingBecame a public company in 19952004 : Launch of “impossible is nothing” Localized advertising to suit national marketsMain competitor Nike whose advertisement spent is $1.4 billion compared to $900 million of Adidas

adidas : A Company’s Profile

Impossible is Nothing

Journey and What Next?

adidas Outline

Impossible is Nothing

Cut through the Clutter

Need Market saturation Customer Hostility towards advertisement Sporting events and sponsorship yield no new

customersInitiatives Continuous decrease in share for Print media

marketing in overall marketing budget average exposure to Adidas 8 minutes a year.

meaningful and memorable message Be on inside or front of cover

Impossible is Nothing

Role of Growing Digital Media

Increasing share of Digital media in Adidas Marketing budgetIncrease in usage of mobile phones in target customer which is in age group of 12-24Growing popularity of 2.5G and 3G cellphonesDivided digital content into three tiers: Free content Cost Plus content Fee based content

Impossible is Nothing

Brand in Hand - Mobile Marketing

Advantages of Mobile media over traditional media Reduces advertisement clutter Delivered directly to the target audience Time sensitive Portability of print

Mobile marketing elements: Mobile messaging Ringtones and Wallpapers Video Games

Impossible is Nothing

Yahoo portal “takeover” for Laila Ali – Impossible is Nothing campaignBrand in Hand ConceptMoving beyond text messagesSweden Collectable wallpaper campaignUK, ringtones pilot project resulting in 600,000 downloads in 10 daysAlthough Profits were miniscule from both the pilot projects the campaigns created Brand Awareness.

Success Stories of Digital Marketing : adidas

Impossible is Nothing

Tagged in 13 of Europe's greatest soccer starsAdidas media campaign Impact Involvement Activation

R2L campaign Ringtones (priced < $ 1) – 10,000 downloads Sales of

adidas Licensed jerseys exceeded 2.5 Mn units. Text advertising clips from R2L – 12,000 downloads

Issues and outcomes in R2L Infrastructure failure Earning from subscription fees not transferred to

them. Lack of focus on 12-24 years old

Road to Lisbon : Mobile Marketing

Impossible is Nothing

Key Market - USA

R2L and Match Centre failed to engage target audience (12-24 years)US teenagers influenced by peer and reference groupBased on above, US brand strategy centered around “URBAN CENTRES OF COOL”

Problems faced Low bandwidth available hence text messaging Nike already a market leader with Air Jordan

brand (targeted for basketball enthusiast) Lower spending on mobile media by American

youth

Impossible is Nothing

US Scenario (adidas Strategy)

Partnership with MTVHip-hop Music It has reached 45 million Americans who

spent $10 billion on music and merchandize

Respect ME : Missy Elliot campaignPromote the fashion line through mobile,

online and face2face eventDelivery of exclusive product preview to

attract customers and make them propagate the message (viral marketing)

Impossible is Nothing

Way Ahead & Viewpoints

Mobile marketing – Not just another fadWill not completely replace traditional channelsEffective through use of innovationChallenges Risks related to technology adoption – regional

customization , 2.5G or 3G. Infrastructure support should be robust. Difficulty in measuring effectiveness.

New avenues Advertising in PC and Console Games. Online product customization. Understanding customer better.

Impossible is Nothing

Questions?

Impossible is Nothing

All Day I Dream About Sports – adidas !!!