Reference no: EM133339475

Case Study: The Adidas Communication Strategy Marketing Communication strategy of Adidas is based on on-line and offline advertising and promotion. Development of informative web site is the top priority for Adidas. On the one hand, it helps Adidas to sustain brand image and deliver better services to customers. As Adidas competes in a progressively fiercer market place for a larger wallet share of an increasingly discerning and diverse customer base, they become ever more communication-dependent. This is very important because consumers are becoming increasingly demanding and sophisticated in their requirements and expectations, and able to defend their bargaining stance/purchase position. On-line promotion involves banner ads and via the on-line community, and sharing current information about new products and new services as the most important support activities. Role of Branding Strong brand image of Adidas helps the company to establish trustworthiness, confidence, and competence for customers. This strategy will be supported by the buying process and the pricing, and most importantly this positioning strategy helps the customers to have the product within their minds. Marketing communication allows Adidas to create a complex bundle of images about its products in the customer's mind. Adidas represents a promise about high quality sports goods; it is a sort of quality certification. Branding is crucial for Adidas because it enables customers to better organize their marketplace experience by helping them seek out and zero in on particular sports products. An important Adidas brand function is to differentiate Adidas offering from all others. Using marketing communication techniques Adidas creates brand equity, which represents the added value that accrues to a product as a result of a company's prior investments in the marketing of the brand. Adidas's Communication Mix can be described as a choice between alternatives. Therefore, for maximum penetration Adidas selects primary (first choice) media that interlock and cross support each other. Most importantly, Adidas uses repetition in the promotion campaign because it is as important as the promotion itself. Using brand celebrities is a very effective technique used by Adidas to popularize its goods. It helps the company to develop a certain image of Adidas brand and create a core of loyal supporters. In any case, press advertising in professional journals takes an important place informing potential customers about new products. Also, coupons, advertise sales and measure the response and assists Adidas to reach its target audience and increase sales in the UK. The armoury of communication techniques at the organization's disposal, which might be used singly or in combination, are blended together into an effective and persuasive communications mix. Market data shows that communication mix is successful because it helps Adidas to sustain strong market position and compete on the market with its direct competitor, Nike. "Adidas is the global market leader in football products, with an estimated 35% share of the market, just ahead of Nike with 33%. Its ambition was to have extended that lead by the end of the World Cup". To some extent, Adidas follows the strategy of its competitors, Nike and Reebok, and sponsored sport events around the globe. Customers integrate all their experiences of observing, using, or consuming a service with everything they hear and read about it. Information about Adidas comes from a variety of sources and cues, including advertising publicity, sales personnel, and packaging. Brand equity can also be thought of as an asset representing the value created by the relationship between Adidas brand and customers over time. Integration Traditional advertising provides Adidas immediate access to a market of potential consumers. The potential customer base is not limited by the number of catalogues or brochures that are printed and mailed, but strong brand image and core of word-to-mouth strategy. This results in economically efficient outcomes helping to attract millions of new jobseekers and improved service for customers. Socialization, and influences that shape social behaviour in a particular social settings determine Adidas orientations. To be socially responsible Adidas uses different ways of advertising, as well as variations of influence in the business environment. Adidas proposes to its customers exceptional services and atmosphere in its site, providing a high level of customer loyalty. Rivalry keeps the market dynamic and creates continual pressure to improve and innovate. Adidas rivalry forces other firms including to develop new services, improve existing ones, lower costs and prices, develop new technologies, and improve quality and service. Adidas has to fight not just for market share, but also for employee talent, and prestige in the UK market. Recommendations Many customers do not have time to read press or listen to the radio, so in-store demonstrations and street advertising will be the main tool to attract new customers. The aim of the message is to appeal to consumers' mind with unique selling proposition. Bill boards and transport ads should be the main tool to attract diverse target audience appealing to emotions of consumers and creating a unique image of Adidas product lines. Also, Adidas should create an environment which encourages the creativity of Customer Relationship Strategy, and enables everyone to work without feelings of insecurity, and without insult. Adidas should use CRM as one of the most important communication technique to deliver customer value and maintain high service quality. The aim of the advertising should be to get a message into the heads of most people at the lowest possible cost. Over the next 12 months Adidas can use "image" advertising to enhance the public's perception of a company, create goodwill, or announce a major change such as a merger or acquisition. It is based on emotional and aesthetic appeal and has an impact on consumers' imagination. The proposed design of the brand communication mix should be to repeat each season with a new product line and message according to the season. Adidas should start its advertising campaign based on new promotion mix. It will include transport ads and direct mail, radio advertisement and PR campaigns. Online community is one of the most successful tools used by companies to establish trustworthy relations with consumers, so Adidas should create an on-line community to be closer to its customers, and support on-line sales and traditional brand relationships. Lately, brand-based online communities with the potential benefits of dialogue flowing between consumers via two utilities: real-time 'chat' taking place in 'chat rooms' and discussions that play out over days, weeks, and even months in discussion forums or bulletin boards. Adidas should divide its campaign into four parts: summer, spring, autumn, winter. The slogan campaign will be - "Enjoy your Walking with Us (Adidas)". The recognition of brand is very important. And the clients will wait impatiently for the next season to see something new. Every season the colours can be changed: spring is green and yellow, summer is red, etc. Advertisements should be placed in the Press, on TV or radio and consumers are encouraged to seek for something new. The advertisement used must be informative enough to enable existing customers to make a decision to buy new goods.

Questions:

1. Discuss the Strategic Role of Branding and the measures that Adidas implemented to sustain Brand Equity.

2. Define "Integrated Marketing Communications (IMC)" and using examples from the case study, discuss how Adidas uses IMC in their Marketing Communications Campaigns