The purpose of this case assignment is to evaluate Adidas’ new promotional campaign and identify the key factors affecting its success. Promotion serves as one of the fundamental tenets in marketing mix. Promotion is the communication of information by a seller to influence the attitudes and behaviors of potential buyers. 1 (Christ). Advertising, sales promotion, and public relations comprises promotion which are used to target specific buyers. These three aspects of promotion work together to attract and retain potential and existing buyers and also highlights the foundation of Adidas’ promotional campaign for the Beijing Olympics. Sportswear manufacturer Adidas’ recent merger with Reebok represents increased clout the firm can use exert on Nike in upcoming promotions for the Olympics. Nike which currently holds the majority of athletic footwear market has done an excellent job promoting its products to focus on target markets. Both manufacturers target the same markets which include the Basketball, Soccer, and Football athletes, as well as, Hip Hop culture. 4 Promoting sales of sportswear through the use of professional athletes has been a venture both Adidas and Nike have done very well. However, Adidas took a big hit when Nike was capable of capitalizing on the “Hip Hop Nation”, or subculture closely intertwined with performance sportswear. Rapper artist, Nelly, wrote a song about Nike shoes in 2005, underscoring Nike’s image change from solely performance sportswear to including fashionable and “cool”.
Adidas returned with signing performing artists Jay-Z, Missy Elliott, and 50-Cent to their sportswear lines. Promotional campaigns by both Adidas and Nike reflect consumer focus when purchasing athletic apparel is not solely tied to performance, and suggests that some consumers view athletic apparel as a reflection of personality and a fashion statement. A perspective from Gonzalo Basilico, a 12 yr old student, supports this notion, “I like Adidas, but I still prefer Nike for the fashion, colours, combinations [. . ] It’s all Nike at school. Everyone talks about Nike, no one talks about the others. ” 5 Adidas’ merger will allow them to compete on multiple fronts, and also eliminates the no. 3 contender, Reebok, from the competition. The combination of the two will allow Adidas to focus on both performance and fashion sportswear. Adidas styled high heel shoes pictured on their website, indicate a shift Adidas’ intention of attempting to claim both the performance and fashion athletic apparel markets. Moreover, Adidas will be able to promote their brands “Adidas” and “Reebok” by targeting specific athletic groups like Soccer and Football; respectively, that hold one or the other in high regards. 7 Both Adidas and Nike have robust advertising campaigns. Webpage, television, and magazine advertisements all suggest that the products are not merely performance sportswear, they’re fashion statements. Adidas’ iconic “3 stripes” and Nike’s “swoosh” are plastered all of over their advertisements and products.
The icons which at first were a company logo, represent a designer label that consumers want. Adidas’ division of efforts between the Adidas and Reebok lines will serve them well in the future. Reebok will be focused on middle priced shoes, while Adidas will focus on high end sport performance and fashion. Division of efforts between the two will pose a formidable advantage against, Nike, the current no. 1 contender in the sport performance apparel market. References 1. Christ, P. (2008). Principles of Marketing. Retrieved 20 JUL 08 from http://www. knowthis. om/tutorials/principles-of-marketing/promotion-decisions/1. htm 2. Unknown (2008). The Promotional Mix. Retreived 20 JUL 08 from http://en. wikipedia. org/wiki/Promotional_mix#cite_note-0 3. Kiley, D. (2005). Reebok and Adidas. Retrieved 20 JUL 08 from http://www. businessweek. com/bwdaily/dnflash/aug2005/nf2005084_8340. htm 4. Ibid. 5. Richardson, B. (2005). Adidas Bid Raises Image Concerns. Retrieved 20 JUL 08 from http://news. bbc. co. uk/1/hi/business/4741343. stm 6. Adidas (2008). Adidas Homepage. Retrieved 20 JUL 08 from http://www. adidas. com 7. Kiley, D. (2005).