MKT744 GLOBAL MARKETING AND SALES DEVELOPMENT SAMPLE
1. Introduction
Adidas is the sports shoe brand that sweeps over Europe and across the globe with the sportswear and shoe, which is sensational but still a carries an athlete vibe with it. It has significantly captured the market in several sports arena and athlete space throughout the globe. Adidas is present both as online and offline store and is considered to be the one of the best-selling sports brand in UK. It is also got to be the most successful is international area but still ruling the market of the United Kingdom. In the year of 2019, this brand had let 6.56 million use sports shoe all over UK(Statista, 2022a). Adidas has a brand awareness of 92% in the United Kingdom, meaning 92 people out of hundred people have heard of this sportswear(Statista, 2022b).
2. Allocated Company’s International outlook image and profile and the product/category selection
2.1. Overall image
Adidas is termed to be a one of the best demanded sports shoe and apparel brand in UK. It is characterised by its good quality, efficiency and comfort that is required in the sports event It has gained a huge glory such that it is also being used by normal people as a fashion statement.
2.2. Number of major products/services:
There is a range of Shoes and sports apparels being sold by the company along with some sports shoe. These are the shoes that have high quality and some of them are for common people as well. The latest strategy of the brand is t extend its service to a broader audience for which the brand is extending its service wider.
2.3. Competitive strategy, and its presence in different countries:
In the United Kingdom, the company is quite established and serves with a price that is moderate whereas in Canada the company tries to lower the price for capturing the market to engage in market penetration while extending the service to a wider category of the population. On the other hand, since the product is newly established in Australia it has a higher cost due to the premium quality it is offering the country moreover, the product is also manufactured in Australia which also has an impact on the pricing range that is to be followed by the company.
Strategy is set in this way because there is less consumption of this Adidas products in Australia and this has its impact on the company operation. So the company has a manufacturing units set up country though the demand is significant. While implementing the strategy of international marketing in Canada, the company diversified the product range to common people as well. Hence the company had to modify its product in order to have a great over the market based on the trend of wellness and health in the country of Canada.
3. Brief Overview of the Marketing environment of C
anada and Australia
3.1. Canada and Australia: Macro Environment:
| Australia | Canada | |
| Political | The company required to set up a manufacturing unit for the product to meet its demand in Australia which comes with a range of regulations and taxes regarding manufacturing laws. This is the reason the company has to pay some amount and that affects the price that the company takes from the products in Australia | Canada has regulations of health and well-being of its people along with las regarding fashion brand. Due to the sustainability law the brand had to bring in some changes within the process of manufacturing of the shoes in order to comply with the laws and regulations followed in the country. |
| Economical | Due to the upcoming recession in Britain as predicted by the bank of England, it is expected that business of Adidas will be hampered to an extent. | Canada, on the other hand, has knach for sports and a craze for ports apparels and shoes and the people in the country consider Adidas to be one of the best in its field when an offer to them and they have a better reception of the product because it has been visible to them from quite sometimes (Statista, 2022a). Due to the recession, there is a tendency for a decrease in the affordable capacity of the people which will affect the consumption of premium quality sports shoes. |
| Technological | There are a range of technology that is being used in Australia regarding promotion by Digital media and through eCommerce implementation which helps the company to have the operation to keep up with the demand after having the manufacturing unit for gowth of the market of the product in Australia | Technology is one of the major aspects that is being considered by Canada while selling the product. There are stores which are providing interactive videos to take orders at to make the customer more aware of the product of Adidas. |
| Social | In Australia, there are people who are interested in indulging into sports shoes and are very lively and excited which goes with the value and spirit of the product thus the company has a huge potential in establishing the market in Australia | The society of Canada is developing an understanding and awareness of health and wellbeing which is a new tendency that is developing. In order to comply with that the company had to engage in modification of the product that is being offered by the company in order to comply with the regulations of the area. |
3.2.Microenvironment
3.2.1.Customers
The brand has a lot of excitement within it because of its association with risk-taking and high sports spirit. Quality product has the two main sources of excitement regarding the product which leads the product towards more popularity in spite of the inhibitions that is present against the sustainability (Adidas, 2022b). The brand is also associated with ruggedness because of its range of customers who have associated the sports and fitness with agility. This brand is portrayed in a masculine way to attract the masculine population who is named for sports enthusiast. However, with the process of discarding gender stereotypes and gender binaries, there is the attendance of women to enjoy this spirit of the brand as well.
3.2.2. Competitor analysis
The range of competitors of brands like Nike also sells premium quality sports shoe. Some other brands as well like Puma, Lululemon Athletica Inc, ASICS Corp, Callaway Golf, Eastbay, Under Armour. And many more They are the company that produces a similar premium sportswear that is similar to the requirements of consumers of Adidas. Hence these are the companies that can stand as a thread against Adidas.
4. Market Entry Strategy
Adidas is named for manufacturing sports shoes and sports apparels for the highly enthusiast sports lovers and the athletes to help them increase their efficiency designing the shoe customed to the requirement of the athletes. However, the motive of the brand is to build sincerity through the establishment of several programs that enable safety and equality in sports practice through inclusion. There is high competence in the product due to the quality and designed customised for increasing efficiency and performance in sports in its seeking for the population of male and their association of the sports with agility.
There is sophistication associated with the brand because of the quality of the sportswear it produces and its source in of the customised design. This is also the reason why the price of this shoe is on the higher end. It is to be considered that the brand contains a customer range who associate the enthusiasm with aggression and that results in lowering the sophistication of the brand. Hence the sophistication of the brand is moderate.
5. Segmentation
5.1. Demographic
The target market of the sports shoe of Adidas is the affluent young male population of the United Kingdom of the current generation. This can be stated by reading the tagline associated with the product: “Impossible is Nothing”(Adidas, 2022a). This sports shoe has a demand that typically comes from enthusiasms with strong content of spirit among the sports lovers. This is quite high compared to the other alternative competitors available in the market of the United Kingdom. What is has to be noted that the price associated with the sportswear remains on the higher side and serves the upper-class and middle-class income groups. The age group opts for this sports shoe belongs to ages 25 years to 35 years (Statista, 2022b). The ingredients that are present in the sportswear come from natural sources. Hence for the sustainability of the product, it is supposed to be accepted by the population that is diverse. On the other hand, this sportswear contains a push in the experience apart from the enthusiasm. Hence sportswear can be termed as a sports shoe which is of desire for a population that is wide in the United Kingdom than the targeted.
5.2.Geographic:
Geographic segmentation includes segmenting the target consumer based on their working or living area of them. There are several approaches that can be taken which includes making groups of customer based on the living country or small division based on geography from the region towards the city or right through the postal code of the areas. As sports shoe is quite a sophisticated spiritic luxury item it is majorly consumed by the sophisticated urban population who are accustomed to luxury. Hence the geographic area targeted by the brand is the urban area as they are also the areas where people come up with a demand for a luxury spiritic luxury item like UK sports shoe.
5.3. Psychographic :
Psychographic segmentation is a methodology of research used for studying customers in order to divide them into a range of groups using the characteristics of psychology which includes lifestyle personalities social status activities opinions interests and attitudes. It must be noted that the brand targets the higher income group for which the social status activities require to be of middle or higher income group within the society. On the other hand, it also must be noted that the enthusiasm is often characterised by the nature of aggressive behavior within the spirit consumption because of its high content of spirit which leads to the aggressive behaviour of the consumer.
5.4. Behavioural:
The behavioral attribute of this sports shoe consumer is associated with enthusiasm because of its primary and previous association with aggressive behaviour in its promotional practices as well. This has developed negative implications for the product because of its contribution to sudden association with unlawful activity as well and the aggressive bringing tendency getting associated with the enthusiasm is being tried to overcome by the company. Behavioral segmentation belongs to the mass with attendance of binge enthusiasm and majorly the youth of the current time so associate enthusiasm with ruggedness but still want it with of flavour of a luxury
5.5. Targeting
While segmentation of the product the demographic and psychographic segmentation of the market is approached by this company as it solves the population who prefers the sportswear to be sophisticated yet slightly stronger with balanced comfort and quality. Demographic segmentation of the product includes the person who is young at age and current generation leaving with a decent lifestyle being in the income slab of mid-range or high range because of the high affordance requirement of this product (Marketing Dive, 2022). Psychographically the product appeals to consumers who have a demand for sophisticated sports shoes yet want a high spirit content in their spiritic enthusiasms while enjoying the concept of agility by being associated with sports
5.6. Positioning
Hence, it can be stated that the brand can be posited as one with a high price yet high quality. While it appeals to a specific section of the high and middle-level of income group it must be noted that the quality provided by the company is quite sophisticated and premium with great demand in spite of being of high spirit content.
5.7. Implementation of Strategy in Canada
While implementing the strategy of international marketing in Canada, product range was diversified making it available to a larger and wider consumer serving the need for everybody who are enthusiastic for sportswear in UK (Adidas, 2022b). Hence the company had to modify its product in order to have a great over the market based on the trend of wellness and health in the country of Canada. In the international market, it is extremely important to concentrate on the requirement of the country in order to set the strategy for gaining success in the specific area of operation of the company as well as the consumption rate of the product or service.
5.8. Implementation of Strategy in Australia
Adidas is manufactured in Australia but there would be a tendency for importing sportswear in Australia to increase its popularity. Strategy is set in this way because there is less consumption of this sports shoe in Australia and this has its impact on the company operation if the company sets up manufacturing unit set up country where the demand is not yet significant. On the other hand, in order to capture the market, the company is making in other places but operating and expanding in Australia resulting in an increase in the brand value of the organisation.
6. Marketing Mix Decisions for both Canada and Australia
6.1. Product
Adidas is a sports shoe that has its origin in UK and comes with a colour which suits the sportsman concentrating majorly on agility friendly design with providing quality and comfort with the product.. However, the texture of the product is crisp and hop but with a soft and smooth finish. The product of the brand is a sports shoe with a finish that is lingering but pale and the major uniqueness of the product lies in the fact of its high content of sportspirit in it. The augmented product of the brand of sports shoe is to be with higher content of spirit but still a range of flavours. This will be able to provide an experience that is sophisticated providing a feeling which is much enhanced than enthusiasm the sportswear with traditional flavour and demand. The product with potential in this category can be sportswear which comes from several flavour and this can also contain luxury items that are non-spiritic for the population who has a demand for the texture and smell of UK sportswear.
6.2. Price
The company of Adidas sports shoe targets a consumer base that is larger though the price of this sports shoe remains on the higher side than the average sportswear which are available in the market decreasing the customer base (Adidas, 2022c). However, the price offered with respect to quantity is much on the higher side for which the brand targets generally the population from the middle or higher level of income group. The product pricing strategy is quite sustainable because of the already established target consumer of the company which includes the group with habits of sports enthusiasm but still wants to enjoy the demand of the sports as a premium product.
However, with the diversification of the product content in the sportswear, there has been a tendency of decreasing the price of the sportswear in countries like Australia in order to the cater a wider range of audience to penetrate the market. Hence lowering the pricing strategy or selling the product at the optimum price is the penetration strategy of the product in the market of Canada. In a market of Canada product is quite popular and is capturing the market pretty fast. There is a chance for the organisation to excel in its functioning which will help the organisation to stand out as following the required market that is targeted by the company through this pricing policy.
It must also be noted that in Australia the product is not being manufactured and that requires a lot of prices to have set a market in Australia (Adidas, 2022e). Hence the price of the brand is a bit more in Australia but at this point, the product is engaging in good marketing procedures of the company to capture the market. With aggressive marketing through discounts and promotion in the market of Australia in spite of having a higher price range, the company is able to catch the attention of a number of the population in the market. In Australia, the product is readily available and this results in product penetration without taking the strategy of optimum price in order to cater to a large number of consumer
Overall Adidas is a product quite in demand but regarding pricing strategy, there are different strategies followed by the company based on its requirement and the region in which it is operating. In the United Kingdom, the company is quite established and serves with a price that is moderate whereas in Canada the company tries to lower the price for capturing the market to engage in market penetration while extending the service to a wider category of the population (Jernigan and Ross, 2020.). On the other hand, since the product is newly established in Australia it has a higher cost due to the premium quality it offers the country moreover the product is imported to Australia which also has an impact on the pricing range that is to be followed by the company.
6.3. Place
Adidas used to be broad primarily in UK but now gets brewed in the United Kingdom as well. The company has also extended its service to Canada while engaging in international expansion and at the current time, the company is growing its product in Canada in order to lower the operation price. This is helping the company to decrease the price of manufacturing the product for waste the company is being able to sell the product at a lower price in Canada and capture the market vigorously. However the product is important in Australia because the company is newly operating in the country and setting up a manufacturing unit in Australia will require an increased demand in the area in order to sustain (Ansons, et al., 2020). The company is engaged in creating and importing services to Australia in order to increase the bright visibility and brand awareness within Australia after which the company will be able to operate with a manufacturing unit. However, the company operates mostly in the urban area by targeting the current-day youths because the premium quality of the sportswear is mostly wanted by this group itself. There are a few other countries where the company seems to operate and that includes countries in Europe like Ireland or UK.
6.4. Promotion
The brand is currently on a mission to re-establishing the brand as one of the most premium and popular sports shoes in the world through an international market penetration strategy. The strategy is to bring back the tradition of UK sportswear through innovative marketing pushing the foody culture by opening a chain including restaurants of its own brand. Adidas is observed of being sold at a premium price from the beginning and was termed to be reassuringly expensive as it is called to be the third most valuable brand of sportswear throughout the world. It has 6 key markets and more than 80% of the volume of sales currently comes from them (Forbes, 2022). It’s the brand engaging in seasonal promotion through digital media in the videos that are interactive by using technology and its rapid advancement of the current times (Atkinson et al., 2022). It is enabling users of the open table to receive special surprises on taking a reservation while participating in such activity within the restaurant introducing the consumer to a series of digital video which allows the consumers to share their opinion and the item that is featured within it (Adidas, 2022f). This initiative is clearly done in order to increase brand awareness and to increase the consumption of the beard in places where the company is not yet highly active or visible to the consumers.
Apart from that, the company is also engaged in a social media campaign in order to target the current time youth who are most active on social media. The contents of the advertisements are revolving around audio-visual content because of its greater capacity of it to take the attention of the viewers and to create an impression of the brand in the former stage itself. Moreover, the brand also acknowledges that trends are extremely important in promotion for which the company engages in the recent evolving trends which in social media in order to increase the requirement of reach of it in the market where the company is newly engaging.
7. Conclusion
Primarily the company was comfortable with distributing the product in the market around domestic one but currently, the company has taken up the strategy to increase its operation in the international market as well. Adidas applies every element of the 4 P’s of marketing with its premium product and a premium price while offering promotional policies that are suitable in the required place based on the distribution of the market of the product throughout the globe. Companies also created a specific customer group and align the products as per their requirement. Hence the brand has a significant number of loyal consumers in its operation and process.
Reference List
Adidas, 2022a. Introducing the official match ball of the FIFA World Cup™ 2022 semi-finals and final. Available at: https://www.adidas.co.uk/ (Accessed: October 26, 2022).
Adidas, 2022b. ADIDAS BASKETBALL UNVEILS THE 2023 COLLECTION: CHAPTER 01 & PREMIERES “REMEMBER THE WHY” BRAND FILM. Available at: https://news.adidas.com/basketball/adidas-basketball-unveils-the-2023-collection–chapter-01—premieres–remember-the-why–brand-film/s/65296c64-9163-4e6e-8fe7-73b5fbd74d01 (Accessed: October 26,2022).
Adidas, 2022c. MADE WITH RECYCLED MATERIALS. Available at: https://news.adidas.com/made-with-recycled-materials/ (Accessed: October 26,2022).
Adidas, 2022d. PRODUCT STREAM. Available at: https://news.adidas.com/product-streams?product-streams=teams (Accessed: October 26,2022).
Adidas, 2022e. Your Table is ReadyADIDAS STORIES. Available at: https://www.adidas.co.uk/blog (Accessed: October 26,2022).
Adidas, 2022f. ADIDAS LOGOS: HISTORY AND MEANING. Available at: https://www.adidas.co.uk/blog/967644-adidas-logos-history-and-meaning/ (Accessed: October 26,2022).
Ansons, T., Murphy, C., Naert, S. and Strong, C., 2020. Brand rituals in a low-touch world. What’s Next for Brands, pp.2020-04.
Atkinson AM, Sumnall H, Meadows B. 2022 ‘We’re in this together: A content analysis of marketing by alcohol brands on Facebook and Instagram during the first UK Lockdown, 2020. International Journal of Drug Policy. 2021 Dec 1;98:103376.
Forbes 2022. Adidas | Company Overview & News, Forbes. Forbes Magazine. Available at: https://www.forbes.com/companies/adidas/?sh=68ea66a55e27 (Accessed: December 13, 2022).
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Statista 2022a. Adidas products ranked by number of users in Great Britain from 2013 to 2020. Available at: https://www.statista.com/statistics/312049/adidas-leading-products-in-the-uk/(Accessed: October 26,2022).
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The Guardian 2022. Adidas’s new ad campaign has sparked controversy – but anything that normalises nipples is OK with me | Arwa Mahdawi, The Guardian. Guardian News and Media. Available at: https://www.theguardian.com/commentisfree/2022/feb/15/adidas-new-ad-campaign-has-sparked-controversy-but-anything-that-normalises-nipples-is-ok-with-me (Accessed: December 13, 2022).
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