School of Business Management

1. School of Business Management Principle of Marketing BM0019 Marketing Research Project Topic: Adidas

2. Introduction Marketing Research • Adidas Research Description • Secondary data • Primary data

3. Background & History • Established in 18 August, 1949 • Manufacturing and Sales based Company • Becomes a corporation in 1989 • adidas AG • Marketing Company • Acquired Salomon Group in 1997 • adidas-Salomon AG

4. Background & History • Achievements • Net sales of 6.267 billion euros • Net income of 260 million euros • Management Team info • 15,700 employees worldwide

5. Background & History • 115 subsidiaries worldwide • 1 Operational Centre & 1 Technology Centre • USA • Germany • Singapore • 13 branches • 1 Warehouse • 1 Counter

6. Mission 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.

7. Marketing 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

8. Marketing Mix ( 4Ps ) Products • 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.

9. Marketing Mix (4Ps) Price • 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

10. 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

11. 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

12. How do you first get to know the brand Adidas? • Adidas attracts consumers attention through interesting and creative advertisements.

13. What type of Adidas products do you usually buy? • Adidas does not focus enough advertisements on its swimwear products.

14. What do you go for when buying Adidas product? • Design plays a big part on the consumers purchase decision.

15. What do you go for when buying Adidas product? • People have their own taste and preferences, they do not follow the trend blindly.

16. Does Adidas advertisements have any impact on you to buy more of their product? • Advertising acts as a motivator for consumers to buy Adidas products.

17. Adidas products are affordable. Do you agree? • Adidas price their products that consumers find it affordable.

18. Are you satisfied with Adidas product? • Adidas should continues to make improvements to ensure that all consumers are satisfied with their products.

19. What Do You Go For When 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.

20. Do You Purchase Adidas Products 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.

21. Do You Agree That Celebrities Used In Adidas’ Advertisement Helped 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.

22. Our Surveyors Are Mostly Satisfied With Adidas’ Products With a Minority of Them Putting Design As Their Main Dislike of Adidas’s Products. What Do You Dislike About Adidas?

23. If Adidas Has A New Product, What Would You Want It To Be? Most of Them Answered That They Want An Improvement of Adidas’ Current Products And An Improvement To Their Design

24. Conclusion • 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

25. Recommendations • 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

26. Advertisement by Adidas-Salomon AG

29. The End Q & A