Adidas Marketing Communication - Research Paper Example

Adidas Marketing Communication Research Methodology This study was aimed at determining the marketing communication strategies used by Adidas and theparticipants were the employees of the company and members of the public. The employees of Adidas were helpful in providing information about how the company formulates effective marketing communication strategies to ensure that they are the number one choice for consumers interested in sports equipment and apparel. The employees helped in the understanding of the internal operations of the company. The consumers provided information about their buying patterns of Adidas products. They also gave information about how they learnt about Adidas products. They provided information about the various channels that the company uses in order to reach them. Data Collection Methods Data that was collected for this study was from both primary and secondary sources. The primary data collection methods that were used include interviews, questionnaires and observation. Interviews were used to collect data about the marketing communication strategies used by Adidas. Both the employees of the company and members of the public were interviewed. Structured and unstructured interview questions were used to question the employees about the marketing communication strategies that the company employs in ensuring that its products penetrate the global market. The members of the public were also interviewed on their perceptions about the promotion, pricing, sponsorship, and other marketing strategies used by Adidas. Interviewing the participants was important in collecting first hand information for the study. Questionnaires were also used to collect information about the marketing communication strategies of Adidas from sportsmen, students, and other consumers. Another data collection method employed is observation. Advertisements of the company were observed in the media such as websites, television, and print media. Secondary sources of data such as books, business journals, and research reports were used in gathering information about the marketing communication strategies employed by Adidas. These secondary sources were important in understanding the history of the company and the market trends over the years. Data Analysis In this research study, data collected was both quantitative and qualitative. The data collected was analyzed in order to identify the various methods of marketing communication that Adidas employs and their impact in influencing consumer decisions over sports equipment and apparel. Through analyzing the data the study was able to reveal the effectiveness of the current marketing communication strategies employed by Adidas and highlight the areas that need improvement. Adidas is a German company which is one of the world’s largest suppliers of athletic shoes, apparel, and sports equipment. The logo, shoes and clothing designs from Adidas include three parallel stripes of the same color. The company has also launched its products in different parts of the world including Europe, United States, and Asia in order to increase its market share and access larger markets. Adidas has three main brands which include Adidas Sport Performance, Adidas Style, and Adidas Heritage. Adidas Sport Performance aims at providing innovative and functional sports products to enhance the performance of sports athletes in basketball, soccer, tennis, and other sports. Adidas Heritage is meant for consumers who like sport street wear. Adidas Style is for young consumers interested in sports wear that is fashion oriented and exclusive (Brunner, 2008). One of the reasons behind the success of Adidas has been the use of effective marketing and promotional strategies. The company employs various marketing strategies in order to penetrate the global market. Adidas has several competitors in the apparel industry and in sporting and recreational equipment sectors including Nike, Callaway Golf, and Amer Sports. Therefore, the company applies various marketing communication strategies in order to get an edge over them. Adidas has been able to penetrate the markets and achieve profitability by employing several strategies. The company uses television, print and emerging media like text messages, blogs and video-game ads to market its products. Integrating all these marketing strategies enable the company to reach a big number of consumers. Adidas sponsors big sporting events like Olympic Games and Euro cup. The company also sponsors sports teams such as Liverpool FC, AC Milan, Chelsea FC, among others (Berger, 2008). Such strategies enable many people to get to know about the company and the products it offers. The fans watching such events get to learn about the company. Adidas also enhanced its image through its partnership with MTV. Adidas has also partnered with Samsung to produce shoes which display information on a Samsung phone that is Adidas-branded through the use of wireless biometrics. Another strategy that Adidas employs in marketing communication is using sports stars and other celebrities to market their products. Using celebrities in the company advertisements helps the company to form a powerful brand impression on the consumers. Adidas introduced a brand marketing campaign in 2004 themed “Impossible is nothing” through the internet ads, print media, and television. The company used several stars in various sports in the campaign, including boxing legend Muhammad Ali and his daughter Laila, tennis star Justine Henin-Herdenne, NBA stars Tim Duncan and Tracy McGrady and soccer star David Beckham. The campaign was an effort to reach the target audience of sports consumers aged between 12 to 24 years old. After this campaign, sales in the United States went up by 11%. The internet campaign was also successful and there was a 125% increase in the number of searches for Adidas on Yahoo! after ads appeared online (Borowski, 2011). The company uses behavioral targeting to reach diverse customers. The marketers analyze the online activities of online users and determine the ones most likely to be interested in the products. Then they place ads on the websites visited by those consumers. This strategy is said to infringe on the privacy rights of consumers. However, most of today’s consumers do not mind people knowing about their private information. Adidas also makes use of social networking sites to reach many consumers. The company has pages in popular social networking sites like Facebook with very many fans. Social networking sites are very convenient in reaching a large number of people, especially young consumers (Smith and Zook, 2011). Adidas also markets its products online on the company’s website. Customers can view the products on the company website and view information about the technology used to make them. They can also choose the size and color of the products they want. Customers can easily order the products online. The company offers discounts on specific products and customers who are not satisfied with the product can be refunded. The company also makes use of user review websites to market the products. From the study, it is clear that marketing communication plays a great role in creating customer awareness about the products manufactured by Adidas. Consumers were asked if advertising played any role in brand selection. 70 percent of the consumers said that aggressive marketing communication through various types of media increased consumer awareness about the products and therefore influenced their decisions to buy those products. When asked about how they became aware of the products from Adidas, 65 percent of them cited the use of alternative media like internet, social networking sites, video-game ads and behavioral targeting. Therefore, it is clear that alternative media has played a great role in enabling the company to reach many consumers. Consumers were also asked if the use of celebrities and sports stars in advertisements influenced their purchase of sports equipment. 61 percent of the consumers said yes while 39 percent said no. Therefore, the use of celebrities in the marketing strategies has enabled the company to win more consumers. Conclusion Marketing communication is critical to the success of any business. An organization needs to make the consumers aware of its products and entice them to buy them through effective marketing strategies. Organizations use various strategies to conduct promotions, advertising, publicity, sponsorship and online marketing. Adidas Group the world’s second largest manufacturer of sportswear and equipment after Nike. The company produces technologically innovative and high quality sportswear and equipment and holds a market share of 22% (Brunner, 2008). Adidas has managed to reach many consumers and increase its sales through the use of various strategies. The company uses effective marketing communication strategies to position their products and generate demand for them. To increase the awareness and visibility of the products, Adidas has employed different strategies including television advertisements, social networking sites, user reviews, events sponsorship, blogs, video-game ads, endorsement from celebrities and sports stars, partnerships with other corporations and behavioral targeting, among others. These strategies have enabled the company to increase its market share and penetrate global markets. Recommendations From the study, it is evident that Adidas is employing efficient marketing communication and this has enabled it to have an increased market share. However, some improvements can make the company achieve even greater success. Therefore, some recommendations are given. In order to reach an even greater number of consumers, the company should advertize its products more aggressively through all forms of media. Increasing the use of alternative media such as social media can enable the company to market its products on a very large scale. Adidas should also expand its product line. The company should be more innovative and manufacture more products to meet the customers’ needs. The marketing campaigns should focus on consumers of all age groups. Adidas should also focus on emerging markets and try to establish relationships with local manufacturers. The company should continue with increased incorporation of technological innovations in its products, for instance, the smart shoe. In addition, the company should strive to manufacture products tailored to the exact needs of the users. For instance, shoes designed for the athletes should be light to facilitate ease of movement. Adidas should adjust its pricing structure to ensure that most of the consumers can afford them. Once in a while, they should offer discounts on their products in order to attract more customers. In marketing through sponsoring events like the Olympic Games, Adidas should focus the efforts towards key products. For instance, the company can attract consumers by letting them know that the shoes worn by the winning team were manufactured by Adidas. Reference List Berger, C. (2008). Strategic Sports Marketing: The Impact of Sport Advertising upon Consumers: Adidas - A Case Study. Munich: GRIN Verlag. Borowski, A. (2011). Adidas Marketing Strategy: An Overview. Munich: GRIN Verlag. Brunner, K. (2008). Great Brand Stories: Adidas: All Day I Dream About Sport. London: Cyan Communications. Smith, P. R. and Zook, Z. (2011). Marketing Communications: Integrating Offline and Online with Social Media. London: Kogan Page Publishers. Read More