SUBJECT NAME – DIGITAL MARKETING

ASSIGNMENT-01

NAME: SHALU VERMA SUBJECT CODE: 20BAT_336

UID: 20BBA1507 SUBMISSION DATE: 16-09-2022

SECTION: BBA-3

QUESTION: CREATE A DIGITAL MARKETING STRATEGY FOR A

PRODUCT OF YOUR OWN CHOICE.

ANS: We are all familiar with the name adidas. Adidas AG is one of the largest
companies in the sporting goods industry. The company offers its products through
three main brands: adidas, Reebok and TaylorMade-adidas Golf. The company
operates through more than 170 subsidiaries in Europe, the US and Asia, each
focusing on a particular market segment. Adidas was promoted by Adolf and Rudi
Dassler in 1949. adidas was named after its founders ‘Adi’ from Adolf and ‘Das’ from
Dassler. The company changed its name from adidas-Salomon to adidas AG (adidas)
in 2006. Adidas is the largest sportswear manufacturer in Europe and the second
biggest sportswear manufacturer in the world, after its American rival Nike .

INTRODUCTION:-

Adidas is a multinational firm which was founded in 1948. The firs specialized in
designing and manufacturing of sports clothing and accessories. The company is base
in Herzogenaurach, Bavaria, Germany.
Adidas AG group consist of the Reebok sportswear company, TaylorMade-Adidas golf
company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich. The
company also produces bags, shirts, watches, eyewear, and other sports- and

clothing-related goods. It is considered Number one manufacturer of sportswear in

both Germany and Europe.

The company was founded by Adolf Dessler who used the his nickname Adi and the
first initials of his last name . Adidas’ revenue for the year of 2012 is €14.48 billion.

The purpose of this project is to evaluate the company’s marketing strategy through
conducted sever analysis ( PEST , SWOT, Porter’s five forces , marketing mix
analysis, value chain analysis and competitor analysis ) and based on the findings
provide recommendation for the company.

Adidas’ straightforward digital marketing strategy is the power behind

this success

With this well-implemented strategy, the company wants to topple its main competitor
Nike from the crown. Brand’s e-commerce channel is the fastest-growing revenue
channel and all the production processes as digitized as possible. Changing consumer
behaviors with digital transformation also changes the way how Adidas works.
Technology helps the company to build more direct relationships with their customers.

DIGITAL MARKETING STRATEGY OF ADIDAS:-

1. Digital and technology

Adidas’s five-year strategy that issued in 2015 has the name “Creating the New”.
Describing itself as a digital company, Adidas wants to be the world’s best sporting
apparel brand. In order to achieve this, they use subsequent digitalization as the key
part of their marketing strategy. For the “Best” means designing, building and selling
the best sports goods in the world. The company spends 90% of its marketing budget
on digital campaigns and social media.

[Link]

High-speed manufacturing is one of the essential parts of Adidas’ digital marketing

strategy. They digitized the production process with 3D printing technology and
robotics at Speedfactory in Ansbach. Futurecraft 4D shoes that crafted with light and
oxygen are one successful example of the brand’s advanced technology.

The purpose of the manufacturing process is to deliver the most innovative and
personalized running shoes for every athlete. The sporting goods brand always tries to
meet the high demand. Created with innovation and collaboration, the fresh and
desirable products always ready for customers where and when they want them to
purchase.

[Link] with consumers

They try to interact with their customers and create premium, connected and
personalized experiences. In other words, they create enthusiasm and excitement
about sports on a personal level. The brand takes every touchpoint like mobile, social
and retail that consumers can interact to provide a consistent experience. By taking
insights from digital analysis and Big Data, Adidas tries to be everywhere its
consumers are. Adidas promises to deliver multichannel, unified and also unique
experiences.

Engine Digital collaborated with the Adidas Digital Future Team to meet the needs of
Run Genie’s other audience: the Adidas sales associate. They were tasked with
defining an end-to-end customer experience that enables the sales team to guide the
purchase decision through data visualization and connected hardware.

4. Open-source innovations and collaborations

Adidas opens its doors and calls all the creative including athletes, consumers and
partners to learn, create, share and shape future sports and sports culture. They try to
bring cool products to the market. Parley For the Ocean cooperation is a part of that
initiative which includes producing 3 new UltraBoost models from plastic waste from
the sea.

The brand also collaborates world-famous football players, athletes and singers to
inspire. “Calling All Creators” campaign created by 72AndSunny is a great example of
that collaboration.

5. Strategic cities

Six cities (London, Los Angeles, New York, Paris, Shanghai, and Tokyo) where shape
the consumers’ perception, trends, and buying decisions have strategic importance for
Adidas. In Europe, they focus on selling especially soccer products, but the US is a key
country for other subsidiaries like basketball and baseball. North America is the biggest
market in the sporting goods industry, and its total share is 40%.

6. Portfolio

The company is constantly revisiting its portfolio and concentrating on the core brand
Adidas and Reebok. Thus the brand makes more precise targeting and reduces
complexities. Footwear and apparel under Adidas Neo and Originals names continue
to grow. Adidas has repositioned Reebok for more profitability during 2018. For
Reebok, they collaborate with influential women designers like Victoria Beckham and
women who want to change the world like Ariana Grande and Gigi Hadid.

Even if Adidas has a strong competitor, they’re trying to be the best sporting goods
company in the world and they have no intention to give up the game. Using digital,
technology, right targeting, speedy manufacturing processes, innovation and
collaborations the brand is getting closer to catch the world’s number one. I guess we’ll
continue to watch these two sportswear giants’ competition for long years.