New_Product_Launch_of_Adidas_Elite

NAPIER UNIVERSITY Advertising Management New Product Launch of Adidas Elite [pic] Table of Contents Executive summary Introduction Company overview Competitor Analysis SWOT Analysis Background about Adidas Elite Marketing opportunities of Adidas Elite Targeting Market Marketing positioning of Adidas Elite Market segmentation of Adidas Elite Advertising Strategy Advertising Objectives Message to communicate Media strategy 7.1 Light box 9 7.2 Magazine and newspaper ad 9 7.3 Retail poster 7.4 TV commercial Media schedule. Budget Allocation Pre-testing Campaign Evaluation Appendixes References EXECUTIVE SUMMARY Adidas - a name that stands for competence in all sectors of sport all over the world. Adidas was founded by Adolf Dassler, who started producing shoes in the 1920s with the help of his brother Rudolf Dassler who later formed rival shoe company PUMA AG. Nowadays, Adidas AG s a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylor Made-adidas golf company, and Rockport. Besides sports footwear, the Adidas brand product range extends from shoes, apparel and accessories for basketball, soccer, fitness and training to adventure, trail and golf. Adidas keeping with the brand image is its association with the distinctive logo. The main focus of The Brotherhood was Adidas to sponsor the NBA. The way these six players were selected was by their athletic ability which is why they are also known as all stars. Adidas Elite series is one of the product lines of Adidas, Adidas Elite provide different function of a series of sports drinks include before activity, during activity and after activity. “Adidas Elite” wants to deliver the main message” The science of performance, the formula for success” to the customer. With using the new scientific formulate, the series of “Adidas Elite” is providing a new element to the sport player that can release their potential and reach to the peak of performance. INTRODUTION Company Overview Adidas produces sportswear and sports equipment. The group offers its products primarily through three brands, including Adidas, TaylorMade, and Reebok. The group primarily operates in Europe, the Americas and Asia. According to Adidas group history, Adidas Inc. is a marketer of sports apparel and athletic shoes. The German manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. In keeping with the brand image is its association with the distinctive logo and its advertising slogan, "Impossible is Nothing."(Adidas Group, 2009) “For over 80 years, Adidas has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, Adidas is a global leader not only in the shoe industry, but also in the sporting goods industry. Shoes from the Adidas are available in virtually every country of the world.” (www.oddballshoe.com, 2009) Adidas, like other sports brands is believed to engender high consumer brand loyalty. As well, Adidas has a branded range of male and female deodorants, perfumes, aftershave and lotions. A strong advertising and public Relation events makes Adidas as a worldwide recognized brand and it would be more sustainable in the world market. Competitor Analysis A SWT analysis would be helpful to understand the competitive environment. According to Hill, T. & R. Westbrook (1997).A SWOT analysis comprise of strength, Weakness, Opportunity and Threats. These four trends are analyzed below. STRENGTHS • Market Leadership In sporting goods market, the Adidas is primarily engaged in sports shoes and sportswear. • Strong online presence. In 2008, Adidas also successfully launched its e-commerce platform in four major European markets • One of the strong brands in the world. According to Adidas group data, the nominal capital of the Company shall be EUR 193,515,512. • The Adidas Group is a global player which is represented in markets all over the world. Hence, the company provides strong international operations. • Strong distribution chain all over the world. Adidas has 107 subsidiaries in 20 countries, and exports to 160 countries. • Good financial position, according to Adidas group annual report 2008. In euro terms, Adidas Group revenues grew 5% to € 10.799 billion in 2008 from € 10.299 billion in 2007. (Adidas annual report, 2008) • Highest brand image in worldwide. In sporting goods market, the Adidas is primarily engaged in sports shoes and sportswear. WEAKNESSES • Negative image portrayed by poor working conditions in its overseas factories • E-commerce is limited to USA • The direct sale to consumers is creating conflicts with its own resellers OPPORTUNITIES • Increasing demand in the industry for products available online • Increase female participation in athletics • E-commerce will reduce the cost of goods sold thus improving the "bottom line" • New technology and innovation to stay on top of market need. • Collaborate with other online retailers to offer Adidas products. • Has a great opportunity to expand international market. • Market Diversification THREATS • Strong competition from some of its major challengers in all branches of the business. For example, Adidas larger competitor Nike has a greater market share and having a big budget in marketing activity and Nike's strong reputation in the footwear and apparel industry. • Price war between competitors • Competition from foreign markets and amount of competitors increasing day by day. For example, China's largest local sports brand Li Ning • Economic downturn in North America and Asian Countries • Increase in the price of providing technological solutions, Price of Raw materials and taxation. • Changing consumer patterns Background about Adidas Elite Adidas Elite series is one of the product lines of Adidas, it provide different function of a series of sports drinks include before activity, during activity and after activity. Each scientific formulate of the product plays a key role in helping athletes keep their edge in three stages, before activity, during activity and after activity. Adidas Elite product portfolio has helped professional and elite athletes reach their peak of performance. And it is now newly expanded and available to athletes everywhere. Marketing opportunities of Adidas Elite As living standards and awareness of health get improved, many people have begun to keep fit through sports. According to appendix 1, after the Olympic Games held in Beijing in 2008, people have paid increasingly attention to sports, which has brought considerate demand for sporting goods. According to FIFA website, the 2010 FIFA World Cup Games scheduled to take place between 11 June and 11 July 2010 in South Africa(FIFA, 2009). The sports event will become more popular due to the increasing growth in sport industry. Hence, this is the opportunities to introduce sports drinks product to football team in world wide. Moreover, there are many sports activities cooperate with different city. For example, Hong Kong Government encourages the citizens to do more exercise and promote “sport for all” culture to the public. This is good opportunities for launch the product to international marketing. TARGET MARKET It makes the promotion, pricing and distribution of Adidas Elite easier and more cost-effective. Target marketing provides a focus to all of the marketing activities. [pic] Refer to the Figure 1, the number of new products by sub-category show the sports drinks is least competitors in the sub-category. The food and beverage industry in the US is highly concentrated, with a small number of companies enjoying a large market share. The beverage industry is especially concentrated. In the carbonated drinks category, the three largest beverage manufacturers— Coca-Cola, PepsiCo, and Dr Pepper Snapple—own the brands that enjoy as much as 89% of the total market share. (Henry Fund Research, 2009) Marketing positioning of Adidas Elite Unique selling point It is a series of sports drinks include before activity, during activity and after activity. With using the new scientific formulate, the series of “Adidas Elite” is providing a new element to the sport player that can release their potential and reach to the peak of performance. “Adidas Elite” can offer the highest of electrolyte to fulfill sport player’s needs in three stages, before the competition, during the competition and after the competition. Benefits to the customers To athletes who want to earn good result in the competition, “Adidas Elite” is the energize drinks that offer sport players more energy they want than any other brands, With” Adidas Elite”, athletes can keep the best state to face the intense challenge and obtain the good result in the competition. To target sport lovers who need to have an outstanding performance during the competition, Adidas Elite series is an energy drink that provide a series of energy drink of different utility. Market segmentation of Adidas Elite Geographic segmentation: based on location • China and Hong Kong urban and semi-urban cities with the brand proposition Demographic segmentation: based on measurable statistics • Age: 15 to 35 • Social class: Upper middle, lower upper and upper class • Gender: Male and female Behavioral segmentation: based on benefits sought • Athletes • Gym regulars • Sports enthusiasts • Brand freaks • Image seekers Psychographic segmentation: based on lifestyle preferences, • Experiences • Achievers • Image drivers • Strivers ADVERTISING STRATEGY Advertising objectives In order to ensure that effective objectives are set. According to George Doran (1981), he mentioned the goals should be SMART - specific, measurable, agreed upon, realistic and time-based. The acronym SMART has a number of slightly different variations, which can be used to provide a more comprehensive definition for objectives setting, the objectives of Adidas Elite are listed below: • To achieve a 20% return on capital employed by August 2019 • To make Adidas Elite the preferred brand of 15 to 35 year old athletes in China by February 2017 • To increase awareness of the Adidas Elite in China and Hong Kong from 0% to 25% by June 2017 • To gain 25% of the market for sports drinks by September 2015 Message to communicate Brand Name Adidas Elite Brand Logo Nowadays the Three-Stripe brand mark became the worldwide Adidas corporate logo. This logo represents performance and the future of the Adidas branding identity. It has become synonymous with Adidas and its dedication to producing high-quality athletic products to help athletes perform better. Slogan The science of performance, the formula for success Image Promoting the desired image (Vitality, Powerful and energetically). Capture customer insight by using sharp color and high reputation of Adidas Elite. Capture customer insight by creating resonance in young age group. Brand Personality: Users of the Adidas Elite will perceive a brand different from non-users. Being cull and adventure Budget Allocation Budget for a year |Price |Jan to Feb |Mar to Apr |May to Jun |Jul to Aug |Sep to Oct |Nov to Dec |Total | |47000 | | | | | | | | |60000 | | | | | | | | |245820 | | | | | | | | |48240 | | | | | | | | |80000 | | | | | | | | |35000 | | | | | | | | |12000 | | | | | | | | |53580 | | | | | | | | |2500 | |1 | | | | | | |2000000 | | | | | | | | |5000 | | | | | | | | Total budget for the advertisement campaign comes out to be $ for the period jan to dec. Media strategy Adidas Elite use several outdoor and indoor advertising media to promote the product in the marketplace. Different advertising media use in the in the market like commercial advertisement, Print media advertisement, covert advertising, Infomercials, Celebrities advertisement, Online advertisement, Public transport advertisement, e-mail etc. Present the function of Adidas Elite to capture customer insight. Competitiveness with others sports drinks to determine Adidas Elite is better than other brands. Television commercials The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The majorities of television commercials feature a song that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. The first Adidas Elite TV commercial launching may hold an event at 3 different shopping malls locates in Hong Kong in same day. The TV commercial runs 30 seconds and use the powerful music as the background is easily to capture customer interest. Create the resonance by creative slogan and TV commercial. The Event details: Date:       20rd, May, 2010 Location: Hong Kong famous shopping malls Topic:      First Adidas Elite TV commercial launching Guess:     NBA brand ambassador (McGRady, Dwyane Wade, Tim Duncan) Object:    To sharing how to be a success athlete Content: Case sharing with NBA Stars New product launch New product tasting Covert advertising Covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's owns a phone with the Nokia logo clearly written in the top corner, Adidas Elite also use this advertising technique. Infomercials There are two types of infomercials, described as long form and short form. Long form infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long. The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Print media advertisement Use the Magazine and newspaper ad. Inside the Magazine and newspaper page, it is rarely to using black as the background color. With using the black color in the Adidas Elite. Magazine and newspaper ad, it tends to attract reader attention. The ad is design in a simple way, is just focus on the three different kinds of Adidas Elite and the slogan “The science of performance, the formula for success”, its aim to resonance the sports lovers. Besides, Adidas Elite using the athlete photos as main theme of the poster, its aims to arouse indomitable spirit for everyone. It shows that everyone want to meet their goal. After drink the Adidas Elite series not only meet the goal, also can beat the goal. Online advertisement Use pop-ups and pop-unders. As the name suggests, these are adverts that pop up, or under, the web page being viewed. They open in a new, smaller window. The product feature will be point out at the window. Besides, display graphical or text-only ads that correspond to the keywords of an Internet search or to the content of the page on which the ad is shown. These ads are believed to have a greater chance of attracting a user, because they tend to share a similar context as the user's search query. Radio Youths who are a major part of our target audience though targeted from the above media vehicles but we have seen that they very often listen to FM stations so we have planned to focus three of the premier stations of the state through which we can grab the attention of young people. Media Schedule The entire Adidas Elite launch promotion plan will hold 1 year from 2010 Jun to Dec. The schedule will be the following schedule method to promote Adidas Elite.: First six months media scheduling approach will that be of continuity. Next six months: Our media scheduling will that be of fighting. This has been decided keeping in mind the Adidas Elite in the first three months of our campaign. The following item is selected in promoting Adidas Elite, Newspaper 1.Jan to Jun In the media quality, south china morning post is selected for the media; ads will publish on each Saturday. In the high quality, Apple is selected for the media; ads will publish on each Tuesday 2.Jul to Dec Magazine In the low quality, HK TIMES is selected for the media; ads will publish on each Monday. In the media quality, sixty weekly is selected for the media; ads will publish on each Thursday. In the high quality, SPORT magazine is selected for the media; ads will publish on each Friday TV Commercial High quality is selected. The TV Commercial will be broadcasted daily whole June to Oct. Infomercials The Infomercials will be broadcasted whole 11 June and 11 July 2010 after the World Cup. Transit light box package Light box will post in MTR station and bus stop for the whole promotion period. RoadShow on bus Ads will broadcasted in Roadshow on bus for the whole promotion period Poster Poster will post during the promotion carnival and in the main street. Events, road show or carnival Adidas Elite product launch carnival will hold on the second Sunday of May, because Sunday is public holiday, it will probably attract more people to participate to the event. PRE TESTING Message testing may hold two types: 1. Before a promotional tools is executed 2. After a promotional campaign is placed. 1. Before a promotional tools is executed A variety of tools may be used in protesting: Communications tests A communication test simply seeks to see whether a message is communicating something close to what is desired. This tests are usually done in a group setting like pencil and paper questionnaires and group discussion. Theater test Advertisements are tested in small theaters, usually set up in or near shopping malls. Theater audience are provided with a electronic device through which they can express their likes and dislikes towards a particular advertisement Attitude-change studies People from the target market are recruited, and their pre exposure attitudes towards advertise brand as well as towards competitors brand are taken. Then they are exposed to the test ad along with some dummy ads; following this exposure their attitudes are measured again. The goal is to gauge the potential of the specific add version for changing brand attitudes. Physiological measures Eye-tracking systems have been developed to monitor eye movement across print ads. 2. after a promotional campaign is placed Before committing to expense of a major campaign Adidas Elite take the message testing programs into the field. Split cable transmission It arouse testing of two different versions of an Adidas Elite advertisement through direct transmission to two separate samples of similar house holds with in a single well defined market area. Split run distribution Two different versions of same Adidas Elite advertisement are placed in every other copy of magazine with toll- free numbers and coupons.This method of pilot testing has the advantage of using direct response as test measure. Split list experiment Multiple versions of a direct mail piece are prepares and send to various segment of mailing list. CAMPAIGN EVALUATION Formative Evaluation focues on the institutional development. Sumative Evaluation Appendix Appendix 1 Story: Keep fit in Beijing Source: CCTV.com | 08-15-2008 19:30 The Olympics renews the focus on fitness, agility and health. In Beijing that focus is ongoing and there're lots of places to go. There are morning exercises in parks. Every district has gyms and sports centers. Keeping fit in Beijing is easy and convenient. How do Chinese people exercise' Every morning, every park in Beijing is filled with people doing morning exercises. It's quite normal. There's fresh air. There's a place to show off all the tricks you've just mastered and get a fresh start to the day. So if you're an early bird, join in. Practising Taichi is also a favorite exercise among people in Beijing. If you head for the parks and plazas, chances are you'll discover ranks of people practicing the ancient art. Taichi has a five hundred-year history in China. It incorporates kungfu and ancient medical practices. It strengthens the body and serves as an exercise in self defense. Beijing has many Taichi clubs where people can train. Yang Songquan teaches the Chen school of Taichi, which is believed to be the founding form. He holds classes every day in Beihai park. Yang says his students benefit greatly from the ancient controlled movements. He cites cases of illnesses being cured. If you've tried it at home, or it's something you've always want to try join a Taichi class. There're lots to choose from. Source: China Central Television. < http://www.cctv.com/english/20080815/109557.shtml> Reference Adidas Group, 2009 adidas Group History. Available from http://www.adidas-group.com/ [Accessed 27 December 2009] Adidas annual report, 2008. Adidas group annual report 2008. Available from http://ww.adidas-group.com/.../assets/pdf/annual_reports/2008/GB_2008_En.pdf [Accessed 27 December 2009] FIFA, 2009 Host nation of 2010 FIFA World Cup - South Africa. Available from http://www.fifa.com/worldcup/index.html [Accessed 27 December 2009] George Doran. (1981) There's a S.M.A.R.T. way to write managements's goals and objectives. Management Review Hill, T. & R. Westbrook (1997). SWOT Analysis: It’s Time for a Product Recall. Long Range Planning Henry Fund Research, 2009. Consumer Staples (Food & Beverage) THE UNIVERSITY OF IOWA ----------------------- [pic] Fig 1. number of new products by sub-category (Henry Fund Research, 2009) [pic]