School of Business ManagementSchool of Business Management

Principle of Marketing BM0019Principle of Marketing BM0019Marketing Research ProjectMarketing Research Project

Topic: AdidasTopic: Adidas

IntroductionIntroduction

Marketing Research Marketing Research

– Adidas

Research DescriptionResearch Description

– Secondary data

– Primary data

Background & HistoryBackground & History

• Established in 18 August, 1949 Established in 18 August, 1949 – Manufacturing and Sales based Company

• Becomes a corporation in 1989 Becomes a corporation in 1989 – adidas AG – Marketing Company

• Acquired Salomon Group in 1997 Acquired Salomon Group in 1997 – adidas-Salomon AG

Background & HistoryBackground & History

• AchievementsAchievements– Net sales of 6.267 billion euros – Net income of 260 million euros

• Management Team infoManagement Team info– 15,700 employees worldwide

Background & HistoryBackground & History

• 115 subsidiaries worldwide115 subsidiaries worldwide

• 1 Operational Centre & 1 Technology Centre 1 Operational Centre & 1 Technology Centre – USA– Germany

• SingaporeSingapore– 13 branches– 1 Warehouse– 1 Counter

Mission StatementMission Statement

•Adidas are consumer focused.

•Adidas strive to bring innovation in technology and design to their product.

•Adidas are a global organisation that is socially and environmentally responsible for their employees and shareholder.

Marketing PhilosophiesMarketing Philosophies

• Product and Marketing concept.• To deliver desired satisfaction better than competitors

in order to achieve organizational goals • It focuses on providing athletes with the best possible

product • Adidas focus on the wants of consumers by launching

the “Customisation Experience” project

Marketing Mix ( 4Ps )Marketing Mix ( 4Ps )

ProductsProducts• The core benefit is to satisfy consumers’ needs or

want. • caters for different needs and wants of consumer • uphold its brand by constantly upgrading and

improving products’ innovative features and quality to satisfy its customers.

• Today, Adidas has established itself as a strong brand for sports apparels.

Marketing Mix (4Ps)Marketing Mix (4Ps)

PricePrice– Adidas is a shopping product– Able to penetrate the market as it is cheaper than

its competitors– Uses market skimming

• e.g white T-mac 4 shoes is being charged at a higher price than the other colour of the same version

Marketing Mix(4Ps)Marketing Mix(4Ps)

Promotion– Promotion objective

• Become the NO.1 sporting brand in the world.

– Promotion Mix• Advertising commonly through the

mass media.

• Through the use of the internet

• Point of Sale

• ‘Impossible is Nothing’ campaign

Marketing Mix (4Ps)Marketing Mix (4Ps)

Place – Distributing some of the

Adidas products to the various sporting outlets

• e.g Royal Sporting House, World of Sports, Sportslink

– Adidas outlets

– Online purchasing through the internet

How do you first get to know How do you first get to know the brand Adidas?the brand Adidas?

• Adidas attracts consumers attention through interesting and creative advertisements.

How do you first get to know the brand adidas?

internet

Mass Media

Family

Friends

What type of Adidas products What type of Adidas products do you usually buy?do you usually buy?

• Adidas does not focus enough advertisements on its swimwear products.

What type of Adidas products do you usually buy?

bags

clothing

footwear

accessories

What do you go for when What do you go for when buying Adidas product?buying Adidas product?

• Design plays a big part on the consumers purchase decision.

what do you go for when buying adidas products? please rate (most concer

what do you go for when buying adidas products? please rate (most concer

trendfeaturesDurabilitypricedesign

Fre

qu

en

cy

60

50

40

30

20

10

0

What do you go for when What do you go for when buying Adidas product?buying Adidas product?

• People have their own taste and preferences, they do not follow the trend blindly.

what do you go for when buying adidas products? please rate (least conce

what do you go for when buying adidas products? please rate (least conce

trendfeaturesDurabilitypricedesign

Fre

qu

en

cy

50

40

30

20

10

0

Does Adidas advertisements Does Adidas advertisements have any impact on you to buy have any impact on you to buy

more of their product?more of their product?

• Advertising acts as a motivator for consumers to buy Adidas products.

does the adidas advertisements have any impact on you to buy more of the

no

yes

Adidas products are Adidas products are affordable. Do you agree?affordable. Do you agree?

• Adidas price their products that consumers find it affordable.

Adidas products are affordable. Do you Agree?

Adidas products are affordable. Do you Agree?

strongly disagree

disagree

neutral

agree

Strongly agree

Fre

qu

en

cy

60

50

40

30

20

10

0

Are you satisfied with Are you satisfied with Adidas product?Adidas product?

• Adidas should continues to make improvements to ensure that all consumers are satisfied with their products.

Are you satisfied with adidas products?

Are you satisfied with adidas products?

not satisfiedsatisfiedvery satisfied

Fre

qu

en

cy

100

80

60

40

20

0

What Do You Go For When What Do You Go For When Buy Adidas Products?Buy Adidas Products?

• Only 8% of surveyors buy Adidas product once month, could be due the durability of their product, hence not having the need to purchase as regularly.

• 61% would buy Adidas’ products once or twice a year, as there is no need to replace the product unless it is spoilt. Again highlighting Adidas’ durability. Cost might also be a factor here.

how often do you purchase adidas products?

once a year

once every half year

once every 3 months

once a month

Do You Purchase Adidas Products Do You Purchase Adidas Products Using Its Online Services?Using Its Online Services?

• 97% said that they do not purchase from Adidas’ online service. This is due to their products are mostly sportswear, and require consumers to test them physically, something you cannot do online.

do you purchase adidas products using its online services?

no

yes

Do You Agree That Celebrities Used Do You Agree That Celebrities Used In Adidas’ Advertisement Helped In Adidas’ Advertisement Helped Them Gain More Customers?Them Gain More Customers?

• 68% of surveyors agree that the use of celebrities help Adidas gain more buyers.

• ‘Impossible is Nothing’ Ad gather top athletes round the globe to add awareness.

do you agree that celebrities used in Adidas's advertisements helped the

strongly disagree

disagree

neutral

agree

Strongly agree

What Do You Dislike About What Do You Dislike About Adidas?Adidas?

Our Surveyors Are Mostly Satisfied With Adidas’ Products With a Minority of Them Putting Design As Their Main

Dislike of Adidas’s Products.

If Adidas Has A New Product, If Adidas Has A New Product, What Would You Want It To What Would You Want It To

Be?Be?

Most of Them Answered That They Want An Improvement of Adidas’

Current Products And An Improvement To Their Design

ConclusionConclusion

• 86% of surveyors satisfied with adidas products

• Advertising makes impact on consumers to buy their products

• High satisfaction of consumers causes higher increase in sales of Adidas products

• Adidas products easily accessible and available to consumers

• Design is more priority to consumers rather than price

• On-line services needs improvement as shown from surveyors

RecommendationsRecommendations• Come out with new products such as swimwear, beachwear, table-

tennis, volleyball accessories and medication for body aches after exercising

• More promotions and a slight decrease in price

• Improve in online services such as providing more information

• Make improvements on advertising

Advertisement by Advertisement by Adidas-Salomon AG Adidas-Salomon AG

The EndThe End

Q & A