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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=EpW6PN7KvTU8/14/2019 Ppt Caso Brand in Hand
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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?