Adidas Executive Summary
This report contains information regarding the global brand Adidas in relation to the consumer’s decision-making process and its positioning strategy. The report starts off with a brief introduction followed by the consumer decision making process section which goes into how a consumer would end up purchasing an Adidas product. This is then followed by the positioning strategies section which includes a perceptual map and discusses Adidas’s positioning differences and how it is slightly differently perceived to its main competitor Nike.
This is finally followed by a conclusion which sums up the report. Introduction The global brand Adidas is a sports clothing manufacturer from Germany which was registered in 1949. They have a large range for both men and women including shoes, hats, leisure and casual wear and an assortment of accessories. Adidas is has millions of customers that go through the consumer decision making process on a daily basis and because of the way that it has positioned itself in the market, consumers regularly decide to buy Adidas products. Section one – Decision Making Process
Like any other product, when purchasing Adidas sportswear the consumer will go through the five stages of the consumer decision making process. The first stage is need recognition where the consumer realises a difference between his or her current and desired state. The second stage is pre purchase search which is when the consumer Searches for information on ways to solve a perceived problem or fulfil a want or need. This could simply mean they have a heightened attention or may actively search for information. The next stage is evaluation of alternatives.
The consumer evaluates their choices as a result of their information search. After this the consumer makes a purchase decision in which they actually buy the product. Finally, the last stage is the outcomes or post-purchase behaviour, where the consumer may take action after the purchase based on satisfaction or dissatisfaction. Each of these stages is influenced by both internal and external factors. In the case of a consumer buying Adidas sportswear, need recognition will occur quite easily as the consumers actual state is that they need clothing and the need is above their threshold.
Internal external influences on consumer behavior
There are many factors that may affect this internally and externally. For example the consumer maybe a growing teenager that has grown out of their shoes. In their actual state they are quite uncomfortable as their existing clothes don’t fit and in their desired state they will feel and look more comfortable as their shoes now fit. This is an internal influence. An example of an external influence would be that if the same teenager moved from Darwin to Melbourne, they would want to go from their actual state of being cold because they don’t have warm enough clothes to their desired state of being warm and comfortable.
At the information search stage, the Teenager has realised that he might be satisfied buy the purchase of some shoes. Internally, the consumer will have their own information in the recollection of past experiences which will influence their decision. The teenager may have previously bought a pair of High Top shoes and not been happy with them so they will buy a different type of shoe. Externally, the consumer will engage in research based on how high the perceived risk is.
This may be limited by external factors for example if the teenager lived in a remote area with no internet, they would be as effective in their information search as someone who lives in the city with high speed internet. When the teenager decides that he wants a pair of casual shoes, the evaluation of alternatives occurs. The evoked set of brands the teenager will have in this case will be most likely Adidas and Nike. Internally, the teenager may be in a very good economic situation and therefore is able to choose from virtually any of the shoes.
Externally, his peers will have a large impact as style and what everyone else is wearing will be very important. At the product choice stage, the teenager has purchased white pair of Adidas Core Lows. These were chosen as the teenager was ultimately happier with these shoes than any other shoe. The combination of looks, comfort and price outweighs any competing Nike shoe and therefore makes the Adidas Core lows the obvious decision. Finally, the teenager will evaluate his purchase decision and this will go one of three ways being equitable, ideal and expected performance.
In his case it is ideal as he decided the shoes have the best possible product performance. Internally he is comfortable in his shoes and thinks he looks good because externally he has been receiving compliments from his peers. Section two – Positioning Strategies The product position is the way the product is defined by consumers on important qualities. This is the place the product occupies in consumers’ minds relative to competing products. Although Adidas and Nike are very similar they have different positioning strategies and these are discussed below. High CSR
Low CSR High brand heritage Low brand heritage ADIDAS NIKE High CSR Low CSR High brand heritage Low brand heritage ADIDAS NIKE Obviously it is very hard to separate two large global brands because they are so similar. Using corporate social responsibility and brand heritage on the perceptual map is a good way to differentiate the two. It has come to light that both companies have used sweatshops in the past. Nike however has been in the limelight a great deal more than Adidas in relation to this matter. In a marketing sense Adidas has become better off simply because
Nike’s sweatshop use was more publicised. Workers were exposed to harmful materials, hazardous situations and worked days exceeding 14 hours. Adidas hasn’t always been as big as Nike. Although they do have a classics shoes range and were around in the eighties and nineties, Nike has had a much more success in the past. This success can be contributed to by NBA hall of famer Michael Jordan who was and still is one of Nike’s biggest stars they have ever been involved with. Air Jordan has essentially become a brand in itself.
Until the early two thousands, Nike has had such an edge over Adidas single-handedly because of Michael Jordan. Because Adidas and Nike are so similar, the deciding factor on which brand is actually better has started to fully revolve around which athletes and sports are sponsored by who. Adidas sponsors David Beckham, arguably the biggest soccer player ever which was part of the reason Adidas caught up to Nike. Both companies sponsor prospective up and coming athletes in hope that they will reach the top of their sport and therefore have every fan wanting to wear what they wear.
In summary, which brand is bigger and better will change according to how popular the athletes they are sponsoring are. Conclusion As can be seen, the decision making process is influenced by many factors in a consumers life being both internal and external influences and factors. Adidas has established itself as a global brand in such a way that it is prominent in the mind of many consumers when they are at they are seeking to buy sportswear. By positioning itself in the position that it is now in, it is a confident rival to Nike and will continue to be long into the future.
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