Ppt Caso Brand in Hand

8/14/2019 Ppt Caso Brand in Hand

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BRAND IN THE HANDMOBILE MARKETING AT

ADIDAS

Alex Dorward, Liam McGean, MatthewTomlinson, Yixi Yao

BSAD 331

DR. B.

MUKERJI


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Target Market

Through its brand in the handcampaign, Adidas is looking expand itsreach to target 12-24 year olds

Hopefully reaching customers outsidethe sporting sphere

Adidas also targets soccer segment in

Europe, basketball and Hip Hop (orUrban Cool) segment in North

America


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Porters 5 Forces - Competition

High

Adidas faces stiff competition from numeroussmaller competitors (NewBalance, Asics,

Columbia), as well as from very large players(Nike, Reebok)


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Threat of New Entrants

How severe is the threat of newentrants?


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Threat of New Entrants

Medium

Although is it relatively easy to producesportswear and accessories, it is difficult to

effectively compete in such a market Promotional costs are very high for this market


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Power of Suppliers

How much power do suppliers have?


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Power of Suppliers

Low

There are very many suppliers and thereforelots of choice and little supplier power


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Power of Buyers

How much power do buyers have?


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Power of Buyers

High

Since there is such competition, all of whichare competing for brand recognition, buyers

have a lot of choice and power


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Threat of Substitutes

How severe is the threat ofsubstitutes?


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Threat of Substitutes

Very Low

There are no substitutes for clothing andshoes

There are different types of shoes/clothing,however, if somebody requires soccer cleats,they cannot substitute these with another type

of shoe


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PEST Analysis - Political

What are some political factors thatmay affect the industry?


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PEST Analysis - Political

Regional laws regarding unsolicited mobilemarketing

PEST Analysis - Economic

Dot Com stock market decline in 2000 maymake people doubt the importance of mobilemarketing

Price of newer technology phone features aremore expensive therefore affordability issuesarise

Increased online advertising popularity resulted


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PEST Analysis - Socio-Cultural

Increased use of internet

Frequent use of cellular phones

More than half of the media consumption willbe digital by 2007 (estimate)

Consumers became hostile towardsperceived intrusion on their lives by

advertising


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PEST Analysis - Technological

2.5G and 3G mobile phones

Transfer speeds similar to wireless broadband

2.5G usage is estimated to go from 8% - 68%

from 2003-2006 (Europe) 3G usage is estimated to go from 0% - 28% from

2003-2006 (Europe)

Personal Mobile Gateways


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SWOT Analysis - Weaknesses

Adidas does not have the majority of marketshare in US

Nike held 40% market share

Adidas was not the leader in the Europeansoccer market in 2003

Nike edged out Adidas for the first time

Adidas spends less on advertising each yearcompared to its greatest competitor (Nike)


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SWOT Analysis - Opportunities

What are some potential opportunities?


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SWOT Analysis - Opportunities

In 2003 70% of Europeans had mobile phones

In 2003, 23% of Europeans had mobilephones with newer technology, allowing for

more innovative advertising strategiesA lag in the US mobile phone market gives

companies an opportunity to test their

strategies first on the European market Youth spending on mobile media is rapidly

increasing


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SWOT Analysis - Threats

What are some potential threats?


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SWOT Analysis - Threats

Limited bandwidth within the US

Regulatory delays and diverging delayed theintroduction of 3G into the US

Increased competition in domestic market

Consumers recognize minimal amounts oftraditional advertising

Ie. 8 minutes a year of Adidas advertising perperson


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Competitive Analysis

Nike is the global leader in athleticfootwear

In the US Market:Adidas 16% of athletic footwear market

share (16% Reebok, 40% Nike)

Companies compete by signing pro-

athletes such as Michael Jordan (Nike),Kobe Bryant (Adidas), Allen Iverson(Reebok)

In 2003, Nike had 60% of basketballse ment Adidas had 20% and Reebok


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Competitive Analysis (contd)

Nike spent $1.4 billion on advertising andpromotion compared to Adidass $900million (2004)

Adidas sponsored 2004 EuroCup

Nike sponsored Manchester United in

2002, and increased advertising duringthe World Cup.


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Marketing Mix

Price

Varies depending on product

Run DMC shoes cost $70

Missy Elliott Remix Boots cost $120Consumers are price insensitive

Product

Sportswear and accessories Place

No applicable information found in the case


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Marketing Mix

Promotion

Significant amounts of promotion required

This includes traditional promotion techniques such as

print, billboards, TV, and cinema Internet marketing

Also includes innovative promotion techniques suchas live billboards and mobile marketing

Mobile marketing seen as the future of Adidasmarketing in order to break through the clutter ofadvertising

P d C f M bil
http://www.youtube.com/watch?v=EpW6PN7KvTUhttp://www.youtube.com/watch?v=EpW6PN7KvTU


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Pros and Cons of MobileMarketing

Pros.?


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Pros of Mobile Marketing

Breaks through the clutter

There is an abundance of traditional advertisements

More personal, richer advertising possible

More meaningful and effective

Is not as intrusive as traditional media sinceconsumers have to give consent

Data can be collected that can help study whatconsumers want

Attracts consumers outside the sportingsphere

Broadens their brand ima e

P d C f M bil


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Pros and Cons of MobileMarketing

Cons.?


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Cons of Mobile Marketing

Potential for intrusive, unsolicited, unpopularmarketing (spam SMSs)

Difficult (and possibly expensive) to developcompelling content that users want

Does not reach everybody

Content isnt always available due to possibleservice interruptions

Possibility of increased use of mobile marketingand consequently getting lost in the clutter again

Fragmented and complex due to many differenthandsets and carriers, different types of

functionality, and different preloaded apps


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Conclusion

Should Adidas continue with mobilemarketing?

Ppt Caso Brand in Hand

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