BUS105 Business Statistics: Assignment

Running Head: MARKETING
Marketing

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MARKETING
Executive summary
The main aim of this report is to develop a marketing strategy for Adidas shoes. It also
presents the information about the Adidas background. The SWOT analysis includes
strength, weakness, opportunity, and threat. The SWOT analysis helps to internally analysis
the condition of Adidas. Moreover, the target market helps to identify a specific market to
deliver the product and services of the company for theire specified consumers. The
marketing mix can be supportive to influence a large number of consumers to use the product
and services. It entails different factors such as product, price, place, and promotion. The
innovative and creative strategy is used to improving the product, price, place, and
promotion. At the same time, enhance the participation in the local community to improve the
corporate social responsibility of Adidas.

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Table of Contents
Introduction................................................................................................................................3
Background................................................................................................................................3
SWOT analysis.......................................................................................................................3
Target Market.........................................................................................................................4
Marketing mix............................................................................................................................4
Product....................................................................................................................................4
Price........................................................................................................................................6
Promotion...............................................................................................................................8
Placement.............................................................................................................................11
Innovative recommendation.....................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

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Introduction
This report discusses background of Adidas shoes. It also presents SWOT analysis of
Adidas. It also demonstrates the target market as well as target customer of the Adidas shoes.
This report also shows the marketing mix to the Adidas shoes. This paper represents the
innovative recommendation in the context of Adidas.
Background
Adidas is German Multinational Company that was established in 1949. Headquarter of
Adidas is located in Herzogenaurach, Bavaria. It provides many product and service to
consumers such as shoes, accessories, and clothes. In Europe, it is the largest sportswear
organization. Adidas is the second largest organization of sportswear at the global level.
Adidas obtained €19.29 billion as revenue in 2016. Adolf Dassler and Gebrüder Dassler
Schuhfabrik were the founders of Adidas. Further, designing of shoes included the three
parallel bars. In the current period, Adidas use the same theme into their current official sign.
SWOT analysis
Strengths
 It exists in more than 200
countries.
 It concentrates on the
development of performance
as well as technology.
 Sponsorship to numerous
events and sports such as
Streetball, Olympic, Tennis,
and Soccer.
 Largest market share
 The Strong Brand image in
the marketplace.
Weakness
 Imperfect Budget allocation
in the advertisement.
 Poor advertisement agency.
 Not satisfactory Customer
services.
 Few influential sportsmen in
a brand ambassador.

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Opportunities
 It has great opportunity to
spend in the global market
such as retail outlet and e-
commerce.
 Favourable and enhancing
market trends can enhance
by using effective
technology.
 Enhancement in the
endorsement activities.
 The tie-up with local market
to improve the sale-volume.
Threats
 The Higher competition
level in the marketplace.
 The threat of new entrants.
 Global economic crisis.
 The Higher price of
products.
Target Market
Segmentation can be effective to categorize the market as well as a potential consumer
for offering product and services of the company. Adidas segment incorporated
different types of factors such as behavioural, demographic and psychographic to their
shoes. It has four brands in their robust portfolio like Reebok, Rockport & Taylor, and
Adidas. It implements differentiated targeting strategy for targeting young adults along
with children who give preference to the fitness and sports. It targets the consumers
who lie between the age group of 13-40 years but at the same time, it is addressed that
the majority lies between 15-30 years. These consumers are belonging from the upper
middle class or higher class of consumers (Armstrong, et al., 2015).
Marketing mix
Marketing mix can be important for an organization due to promoting their product and
services. It considers four factors such as product, price, place, and promotion. These
are discussed as below:
Product
There are three level of product that is included in the product level such as Core
product, actual product, and augmented product.

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Core Product
The core product is based on the non-tangible product. The customer cannot able to
touch it because the core product is the advantage of product which makes valuable to
the product. The style and comfort of the shoe cannot be touch thus it can come into the
core product.
(Source: Armstrong, et al., 2015).
Actual Product
The actual product is a tangible product that can be touched by the consumers. For
example, the customer can buy collect and use the shoes of Adidas. It includes many
components such as quality, colour, fashion, branding, and style of product and
services.
Augmented Product
The augmented product is non-physical part of the particular product. It generally
consists of many added values for which a customer may not pay. Additionally, it
considers many factors such as warranties, customer care, delivery, services,
installation, and finance. An Adidas can obtain higher profit from the application of
such layers in the business operation.
Adidas focuses on a narrow class to offer the shoes in the marketplace because it helps
to achieve the cost advantages.

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Product lifecycle stage for the product and suggestion for marketing
Product lifecycle supports to identify the actual condition of the product in the
marketplace. It also helps to improve the condition of product and services by providing
an effective suggestion. On behalf of the product lifecycle, Adidas shoes lie in the
Growth stage. The growth stage of the product indicates that the sales volume of
product is starting to grow. The product is also starting to gain their profit
systematically. Adidas can use Image result for persuasive
advertisingwww.buzzfeed.com persuasive advertising strategy to promote its products
and services. The major aim of this strategy is to encourage the consumers for buying a
specific product, especially in the existence of many substitutes in the market.
(Source: Armstrong, et al., 2015).
Adidas is used “Impossible is Nothing” as a brand tag. It is the important tagline for the
company because it demonstrates the significance of fitness as well as the importance
of struggling hard to meet anything that a consumer desire. It can be the biggest
marketing strategy of Adidas.
Price
Adidas use premium price strategy as compared to their competitors. The premium
price strategy provides more benefit to the organization because premium price
demonstrates the better quality than the competitors. This strategy of the company can
support to gain the profitability as well as sales of the organization. The main reason to

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use the premium price strategy is to offer the higher-end ‘lifestyle’ as compared to their
competitors. It also makes different than competitors.
Pricing objectives
The following pricing objectives can be effective to gain the profitability of the
company in less time and cost. It mainly considers three factors such as customization,
footwear growth, and brand awareness.
 To execute mark up for customization.
 To expand the footwear line in the marketplace.
 To increase brand awareness in the market.
Concept of price elasticity for Adidas Shoes
The price elasticity indicates that how demand of product affect the price of product
and service in the marketplace. Price elasticity of demand is determined as the
proportion of percentage change in the demanded quantity of product to a percentage
alteration in the prices. On behalf of the price elasticity, in case the demand for the
product is increasing then they can increase the price of products. But, at the same time,
in case, the demand of the product is low then the company should decline the prices of
products due to enhancing the sale of product and services. In addition, there are two
factors that may affect the prices of a product such as income and price of commodities.
These factors can also influence the demand for product and services.

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Promotion
In the current business scenario, a large number of consumers have used the internet to
interact with each other therefore organization is implied internet advertisement to
promote the Adidas shoes. Through this, the organization provides a significant
promotional message to their potential consumers about Adidas shoes e.g. “control
everything”. An organization is used social media marketing strategy to attract more
consumers by spreading the awareness about product and services.
(Source: Kotler, et al., 2016).
(Source: Kotler, et al., 2016).
The above chart shows the viewers of company product that demonstrates that the
social media can be effective to gain profit as well as sale systematically.
Effectiveness of print advertisements in terms of applying the hierarchy of effects
model

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The hierarchy of effects model can be supportive for the print advertisement to increase
the awareness and demand of product and services. This model mainly considered three
factors such as cognitive, affective, and conative. Additionally, it can also be said that
the message should be considered such factors to easily attract the consumer. The
cognitive factor is used to make are the consumer about the product and services and
they create their best knowledge about goods and services. From this, Adidas can
increase the knowledge of consumer about the Adidas shoes in the marketplace. The
effective factor can use to create feeling between consumers to like and dislike Adidas
shoes. In the last step, consumers take a decision about purchasing of product and
services of the company.
(Source: Kotler, et al., 2016).
IMC mix used to communicate the product to the target market

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The integrated marketing mix can be supportive to communicate about the product and
services in the targeted market. There are different types of factors that are included in
the IMC such as advertising, personal selling, public relation, sales promotion, and
direct marketing. These factors are supportive to promote Adidas shoes in the targeted
market in less time and cost. At the same time, it is addressed that internet presence can
be an additional promotional element for Adidas to promote their shoe at the specified
time and cost
(Source: Kotler, et al., 2016).
Advertising can be an effective factor to influence a large number of consumers in less
time and cost. Personal selling can support the company to make a favourable
relationship with consumers. At the same time, it can be said that each element of
promotion can support to spread the awareness regarding product and services.
(Source: Kotler, et al., 2016).

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(Source: Kotler, et al., 2016).
Placement
There are two kinds of distribution channels that will be used by the organization to
provide their product and services for their potential consumers such as business to
business and business to customers. There are two kinds of channels are used by the
company to provide product and services such as direct and indirect distribution.
Direct Distribution
The organization can use the direct distribution wherein an organization is not using
the intermediate to offer the product and services of the firm. Adidas does not use the
direct distribution channel to provide their services.
Indirect Distribution
Indirect distribution can also be effective to provide the product and services by using
intermediate for potential consumers. Adidas is used wholesaler or distributor, dealer,
retailers, agents, and internet sources to sell their product and services.
Distribution strategy
The distribution strategy can be effective to improve the distribution that will help to
accomplish the specified goal. For this product, the company is used the intermediaries
to deal with a large number of consumers in less time. It is the imperative strategy of

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the Adidas. It is used the exclusive distribution to provide their product in the target
market through retailer, distributor, and wholesaler.
Types of retail outlets
There are many kinds of retail outlets that are used by a company such as Department
Stores, Discount Stores, Supermarket, Warehouse Stores, Mom and Pop Store,
Speciality Stores, Dollar Stores, E-Tailers, and Malls. Adidas is used the departmental
store to sell their shoe in the marketplace. It is effective to influence large numbers of
people as compared to other sources of retail outlets (Kotler, et al., 2016).
Innovative recommendation
The innovative and creativity can be effective to improve the financial condition as well
as the corporate social responsibility of firm. The company should encourage the
employees to create an environment wherein employee can share their innovative ideas
about the improvement of CSR. They also force the employees to seek society as an
important part of performance culture due to solving the CSR issues and make an
appropriate relationship with society member.
(Source: Kotler, et al., 2016).

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Another strategy is enhancing the participation in the local community by having the
raw material to the local market. It will be effective to improve the relationship with
local people that can directly influence the financial condition as well as an image of
the company in the marketplace.
Conclusion
From the above analysis, it can be concluded that the marketing mix can be significant
to make aware the consumer regarding product and services in the market. The
marketing mix can involve four types of factors such as product, price, place, and
promotion. In addition, it can also be summarized that innovation and creativity can be
an effective strategy for improving the corporate social responsibility as well as
improving the marketing of Adidas Shoe.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an
introduction. USA: Pearson Education.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2016). Marketing
management. USA: Pearson Education Ltd.