Marketing: Adidas Advertising Campaign

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Background to the study
Aim and scope of the report
Analysis
The consumer buying process, involvement Levels/Risk Perception
Marketing mix
Critique and recommendations
Reference List

Background to the study

The US is one of the developed economies in the world. Its economic growth coupled with other factors such technological development, legal, social, and political stability have significantly enhanced the country’s attractiveness to domestic and foreign investors.

The apparel industry has attracted major players such as Nike, Addidas, and Reebok, which has led to an increment in the intensity of competition and degree of rivalry in the industry. As one of the industry players, Addidas incorporation focuses at increasing its market share both in its domestic and foreign market. Marketing is one of the most important aspects that the firm has incorporated in its operations.

The firm has formulated and implemented a multi-faceted market awareness strategy. The strategy constitutes an integrated marketing communication, which entails diverse methods of creating awareness. Advertising is amongst the promotion methods that the firm has adopted.

The intense competition in the apparel industry is motivating marketing managers to formulate marketing mix strategies. The marketing mix strategies formulated have to align with the target market (Lamb, Hair, & McDaniel 2012.). In a bid to enhance the effectiveness with which its brands gain effective market penetration, Addidas ensures effective coordination of its promotion, distribution, and pricing strategies.

Miller (2009) asserts that it is paramount for marketing managers to develop in-depth and up-to-date information regarding customers’ product needs. Therefore, it is important for marketing managers to understand the consumers’ buying behaviour.

Understanding the consumers’ decision-making process is paramount in firms’ effort to influence consumers in their decision making process. Over the years, Addidas has been committed to influencing consumers in their decision making process through advertising.

Aim and scope of the report

The objective of this report is to conduct a broad analysis of Addidas advertising campaign. The report takes into account the consumer’s decision-making process, involvement levels or risk perception, and the marketing mix strategies adopted by the firm. The report also incorporates a critique and recommendations on the ad campaign.

Analysis

In 2004, Addidas allocated $50 million of its marketing budget to advertising, which was the largest budget that the firm has ever committed to advertising. The campaign was undertaken through various mediums such as television, the Internet, and print media. The campaign aimed at enabling the firm to attain an effective market position especially within the sports footwear and apparels market.

Through the campaign, Addidas would market its diverse footwear and apparels products. The decision to engage in such an advertising campaign hinged on the fact that the firm had kept aloof with regard to the sports market for a considerable duration. Consequently, it needed to develop an edge in the apparel market.

The consumer buying process, involvement Levels/Risk Perception

Prior to purchasing a product or service, consumers engage in a broad decision making processes (Kumar 2008). This aspect explains the importance of marketers to develop a comprehensive understanding of the consumers’ decision-making process. The decision making process varies depending on the nature of the product that consumers intend to purchase and the level of risk involved (Reid & Bojanic 2009).

Products that customers attach high value to are considered to have a high degree of involvement. On the other hand, other consumer products such as purchasing toothpaste have a low degree of involvement (Kurtz & Boone 2009). According to Reid and Bojanic (2009), some products involve a high degree of risk.

The various risks involved in the purchasing process include social risk, functional risk, financial risk, psychological risk, and physical risk (Ferrell & Hartline 2008). Some purchases are characterised by a relatively a higher degree of risk as compared to others. Consequently, the decision making process that consumers undertake is also dependent on the degree of risk involved.

In their purchasing process, one of the aspects that consumers consider is the brand. Consumers make their decisions based on their previous product experiences. Therefore, if they become satisfied with a particular product or service, they are likely to repurchase it in the future.

The consumers’ decision-making process entails a number of steps, which include problem recognition, information search, identification of product, evaluation of alternative options, actual purchase, and post purchase evaluation.

By investing in the advertising campaign, Addidas sought to influence consumers at different points of their decision making process. The advertising campaign was effectively designed by incorporating a catchy slogan, viz. “impossible is nothing”. The message of the slogan aimed at encouraging consumers to overcome their individual challenges that they perceive as being impossible.

A number of factors influence consumers in their purchasing process. Some of these factors relate to situational, social, and psychological influences (Pride & Ferrell 2012). Psychological influences refer to the consumers’ self-concept, perception, motives, and lifestyles.

The social influences arise from various sources such as family members, reference groups, opinion leaders, roles, social class, electronic networks, culture, and subcultures. On the other hand, situational influences refer to purchasing reasons, the buyers’ mood, social surrounding, and condition. In designing its “Impossible is Nothing” campaign, Addidas objective was to influence consumers’ psychology in their purchasing process.

The campaign targeted consumers aged between 12-34 years old who are actively involved in sports irrespective of their social status, passion, and personal challenge. Adoption of such a slogan presented the advertising campaign as a campaign against oneself. Through the campaign, Addidas influenced consumers’ emotions in addition to challenging them to attain higher achievements.

The adoption of such a slogan was very effective in influencing the consumers’ decision-making process with regard to apparels. The slogan challenged consumers to try out issues in order to achieve higher goals. The basis of the ad campaign was that nothing is impossible if attempted. The effectiveness of designing the ad campaign made the message to resonate in the mind of the target audience.

Upon identification of the product to purchase, consumers undertake a comprehensive evaluation of alternatives, which arises from the fact that the market presents consumers with a wide range of products and services to choose. The alternatives considered are determined depending on the consumers’ past knowledge or association with a given product.

By incorporating a catchy slogan, Addidas managed to influence consumers in their search for alternative footwear and apparel products. Additionally, the firm managed to change and reshape the consumers’ perception by positioning itself as the most inspirational sportswear company.

Ultimately, the firm re-energised its brand, thus increasing its market share. Additionally, the decision to undertake such an advertising campaign also aimed at enhancing the firm’s competitive edge.

Marketing mix

Product strategy

In its operation, Addidas is committed at ensuring that its customers achieve a high level of satisfaction. One of the ways through which the firm intends to achieve this objective is by being innovative.

The firm has over the year’s undertaken comprehensive market research, with an aim of improving the firm’s effectiveness and efficiency with regard to its research and development processes. Consequently, the firm has developed sufficient capability in designing apparels and footwear products that are appealing to its customers.

In a bid to satisfy the entire market, Addidas has incorporated the concept of product diversification, which is evidenced by the fact that the firm produces products to meet the needs of both genders. In the process of designing its footwear and apparel products, Addidas ensures that its products are comfortable, and thus consumers can derive value and a unique experience.

Additionally, the implementation of the “Impossible is nothing” made consumers to develop a strong link with the firm’s products. Wearing Addidas’s products makes most consumers to develop a feeling of being a champion in whatever they do.

Pricing strategy

Price is one of the factors that consumers take into consideration in their purchasing processes. Through pricing, marketing managers can influence consumers tremendously. One of the ways through which this aspect is possible arises from the fact that price communicates value. Some consumers perceive high price as a representative of quality (Ferrell & Hartline 2008).

Thus, it is important for firms’ management teams to formulate effective pricing strategies. In the process of marketing its products, Addidas has incorporated diverse pricing strategies. Some of the strategies that the firm has adopted include penetration pricing, premium pricing, and psychological pricing.

The firm uses penetration pricing when introducing new apparels and footwear products. On the other hand, psychological pricing applies in the firm’s -effort to influence the consumers’ emotions in the decision-making process.

Promotion strategy

Creating marketing awareness is the first step towards a firm’s effort to attain profit maximisation (Pride & Ferrell 2012). In a bid to create sufficient market awareness, Addidas adopted integrated marketing communication in its advertising campaign. The firm implemented this goal by incorporating diverse market communication mediums such as television, print media, the Internet, and outdoor advertising.

The firm ensured that the television commercials were remarkably persuasive, and to achieve this element, the firm contracted 22 professional sports athletes across the sports spectrum to endorse its products. The commercials also involved a narrative of successes achieved by people who perceived some tasks being impossible.

As a result, the firm managed to inspire people to think about their obstacles and come up with ways of overcoming the same. The objective of the narratives was to inspire consumers to wear Addidas apparels and footwear when trying out what seems impossible to them irrespective of the outcome.

The TV commercials specifically aired on leading sports channels viz. Zee Sports, 180 Amsterdam, TBWA, and ESPN STAR. The firm ensured that the frequency of airing the commercial increased during primetimes such as during the UEFA Champions League and news time.

In a bid to reach its target market, Addidas used the Internet to create awareness to consumers aged between 18-24 years. The decision to use the Internet revolved on findings of a market research conducted by the firm. The research revealed that consumers within this age bracket spend a substantial amount of time surfing the Internet.

Therefore, using the Internet would significantly increase the firm’s effectiveness in influencing its target market (Doren, Fechner & Green- Adelsberger 2000). The firm also designed a website called adidas.com, through which it marketed its products. The website was effectively designed by incorporating audios and state-of-the-art graphics that motivated the target audience to spend a considerable duration on the site.

The firm also ensured that the website was interactive as possible by giving potential customers an opportunity to post and share their incredibly impossible stories.

Individuals who posted the most incredibly impossible stories were given an opportunity to attend a tennis match with Justine Hennin Hardenne, a free-kicking session with David Beckham, and a swimming session with Aussie ace Ian Thorpe. The firm also undertook advertising through homepages of various search engines such as Yahoo, MSN, Google, and ESPN.

Additionally, the firm also used other tactics such as posting adverts on billboards, expansive wall-scrapers, and building climbing. Addidas also used sponsoring techniques to create market awareness to the sports fraternity.

For example, the firm was the official sponsor of the 2006 World Cup, and in 2004, the firm sponsored the Olympics. Currently, the firm sponsors a number of football clubs such as AC Milan, Liverpool, Real Madrid, Bayern Munich, and the New Zealand’s national rugby team. With regard to print media, the firm posted adverts on various sports magazines and newspapers.

Distribution strategy

Addidas has adopted direct and indirect distribution channels in a quest to ensure that its products are accessible to a large number of customers. One of the direct distribution methods that the firm has employed entails establishing retail outlets in the market. The retail outlets are in strategic locations to promote accessibility to a large number of customers.

Additionally, the firm has also utilised the Internet to distribute its products by incorporating the concept of online shopping, which occurs through the firm’s website. Additionally, Addidas has also entered into contracts with various large retailers such as supermarkets and hypermarkets across the world. The contracts stipulate that the retail outlets should trade in the firm’s products.

Critique and recommendations

The advertising campaign undertaken by Addidas was very effective. The firm adopted an effective slogan that appealed the consumers’ emotions. Consequently, the firm managed to influence the consumers’ decision-making process. Additionally, the firm adopted effective marketing strategies that enabled its products to gain sufficient market penetration.

The adoption of integrated marketing communication enabled the firm to create sufficient awareness regarding its products. The firm’s success in its advertising campaign is evident given that the firm experienced an increment in its market share especially in the European market such as France, Germany, Italy, UK and Spain.

Additionally, the firm’s sales share also increased with a 20 per cent margin. As a result, Addidas successfully outperformed its major rival companies such as Nike, Reebok, and Puma.

In a bid to improve the chances of success, Addidas should have widened the scope of the advertising campaign. Increasing the age bracket of the target audience is one of the ways through which the firm should have improved the outcome of the advertising campaign for the firm would have increased its sales revenue.

In addition, to increase its sales revenue, the firm should have adopted other advertising mediums such as the radio. This would have increased the firm’s effectiveness in creating market awareness.

Reference List

Doren, D, Fechner, D & Green-Adelsberger, K 2000, ‘Promotional strategies on the World Wide Web’, Journal of Marketing Communications, vol. 6 no. 1, pp. 21-35.

Ferrell, O & Hartline, M 2008, Marketing strategy, Thomson South-Western, Mason.

Kumar, S 2008, Case studies in marketing management, Pearson Education India, New Delhi.

Kurtz, D & Boone, L 2009, Contemporary business 2009 update, Sage, New York.

Lamb, C, Hair, J & McDaniel, C 2012, Essentials of marketing, South-Western Cengage, Mason.

Miller, S 2009, The essential MBA, Sage, New York.

Pride, W & Ferrell, O 2012, Marketing, Cengage Learning, Ohio.

Reid, R & Bojanic, D 2009, Hospitality management, John Wiley and Sons, New York.

Click Here To Order Now!