Discussion About Digital Marketing Communication Report 2022

RUNNING HEAD: DISCUSSION ABOUT DIGITAL MARKETING COMMUNICATION
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NIKE, REEBOK AND ADIDAS
Digital Marketing Communications
Student name
8/2/2019

STP, SWOT AND PESTLE ANALYSIS OF FOOTWEAR INDUSTRY
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Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Overview of DMC with the opportunities and threats of companies:.......................................2
PESTEL Analysis of firms:........................................................................................................3
STP (Segmentation, Targeting and Positioning) of Nike, Adidas, and Rebook:.......................4
DMC Mix of the corporations chosen in the industry:..............................................................5
Conclusion:................................................................................................................................6
Bibliography...............................................................................................................................8

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Introduction:
Digital marketing communications is evolved during the modern time as because of
the usage of internet, smartphone, and social media platforms (Kingsnorth, 2019). It is
needed so to remain competitive in the environment. For the purpose of explaining the
concept, selection of the footwear industry is Reebok, Adidas, and Nike.
Nike:
It is a company which continuously innovate its products for serving its offering to the
athletes’ people. It was established in the year 1964 by the sportsperson Phil Knight and his
coach Bowerman. It was known as Nike nowadays, but most people are not familiar with its
original name that is (BRS), which stands for Blue Ribbon Sports. Its first store launched in
the year 1966 through collaboration with Onitsuka Tiger, a Japanese company. It uses
football game for its marketing activity. It has a vision that everyone can reach their potential
irrespective of their ability level and its tagline is ‘Just do it’ (Nike, 2019).
Adidas:
It is a German company, which is existed in the market since 1949. It was named by its
founder that is Adolf Dassler. It not only manufactures shoes but also clothing as well as
accessories. Its product captures the huge market in Europe as it is famous in this country. It
comes second in the rankings of top leading brands. It makes its products through three
stripes, which is its trademark. It supports many types of events such as football, soccer, and
golf and it is launched after the world war (Adidas, 2019).
Rebook:
It is an English brand which is, also a subsidiary of Adidas Company. It is established in the
year 1958 by Josepsh William. Company sponsored various sporting events such as Ultimate
Fighting Championship, Spartan Race and Cross-Fit (Reebok, 2018).

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Discussion
Overview of current Digital marketing communication and SWOT analysis
Digital Marketing Communication is the necessity of today’s world because every
individual wants to be updated with the new technology and due to this, rise of marketing on
these mediums, so that to enhance the knowledge of consumers well. In this industry, major
trend is to utilise social media tool to interact. This industry is different from regular shoe
making as, in this profit margin is good (Ryan, 2012).
A. Nike: It uses tools such as social media websites and runs campaigns for the purpose
of communication. Three opportunities for Nike are, Firstly it can fill the gap which
exists in between social media users and secondly, by watching innovative
advertisement customers motivates to purchase more products of company. Thirdly, it
motivates people to fulfil their dreams without any fear in mind with their videos.
Three threats are firstly, related to use of other communication mediums, as it does
not focus on television as well as, on magazines and newspapers and Secondly, due to
this, its market range goes limited to only internet users and not gets the attention of
those who don’t use these Thirdly, in social media unnecessary responses get
attention and lead to the failure of the organisation (Srdjevic, 2012).
B. Adidas: Opportunity is that, firstly it uses various types of media for interaction such
as television, outdoor advertising by sponsoring gaming events. Secondly, it uses
Twitter, Facebook, Instagram and YouTube. It is by this it covers large segment of the
population easily, with the utilization of various tools in its marketing. By this, it
earns a huge amount of growth is achieved plus its profitability increase in the market.
Thirdly, it can collaborate with the retailers which sell products through online
medium. Threat factor, firstly, as though it uses various tools but its rating is low as
compared to the other enterprises. Secondly, it is not able to satisfy the needs of
customers. Thirdly, it is not able to solve the queries of clients in its website (Adidas,
2019)

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C. Reebok: Opportunity is that, Firstly, it runs various types of promotions such as
advertisements given on television, print media and through by giving sponsors as
well as campaigns. Secondly, it is connected with changing of its own business model
that is shift from sports to fitness. Because it understands the lifestyle of people, in
which fitness is required. Thirdly, it is the first one to launch the fitness campaign for
the people as it grasps huge attention and popularity. Threat, firstly, it faces
challenges relating to other brands as they provide various types of ranges in its
offerings. Secondly, it is also due to the technology as it changes very fast. Thirdly, its
product quality is not up to standards (Adidas, Reebok, 2019).
PESTEL Analysis of firms:
 Political factors: It is stable in Australia and due to this it is free from the evils of
corruption. In respect to Iran country, Nike is not allowed to manufacture its product
for football team of Iran as because its campaign of ‘Just do it’ is failed because it
shows the issue of racism happen to the player and due to this it’s image fallen down.
(Frue, 2019).
 Economic factors: Australia’s economy is the third-largest economy in the world
that’s the reason it is considered as good for doing business. However, its tax rate is
30% may impact on productivity, but not as much. Adidas produces more than 50%
of its products from China but it has to, transfer it to other countries as because of
increasing labour cost.
 Social factor: Here, life expectancy rate of people is low and people living here are of
various diversities. In this, groups are divided into various types such as working,
upper and middle class. Reebok is suitable as it tends to focus on improving the
lifestyle habits of people so that they can increase their age of life.
 Technological factor: Footwear Industry adopts new innovations easily and given all
support for technology in Australia. By this, Nike can easily implement technology in
fields such as designing and marketing.
 Environmental factor: In Adidas, factory harmful substances are not used for
manufacturing thus it is sustainable in this way.
 Legal factor: Its legal conditions are strict and provide protections against
discrimination practices whether it is related to gender, age, and disability so these
should be kept into consideration by Reebok while moving to newer markets (Frue,
2019).

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STP (Segmentation, Targeting and Positioning) of Nike, Adidas, and Rebook:
It is for the purpose of locating target market effectively.
Nike: It has well-positioned in the market as it can be shown from the evidence of its top
ranking. It targets those people who are athletes, and emphasis on the age group 11-45 years
particularly in which, focus mostly on women as well as teenagers. It utilizes the internet for
capturing the views of customers so that more customers are attracted by reading these
comments (Khan, 2013).
It serves the niche market because its products are costly. It also maintains its product
according to the preference of the cultural factor aroused such as Golf by Tiger Woods and
Soccer by Cristiano Ronaldo. For the purpose of positioning, it uses emotional branding
method so to connect with individual’s life and it can be achieved with the help of videos, in
which it highlights that how an individual can obtain their goal by removing all his
obstructions at the side (Danesi, 2014).
Adidas: It not confines to a particular age group, but focus on mainly age between 15 to 30
years and operating its business successfully, through its diversified product lines. It focuses
on both male and female consumers equally. It targets on the class which is above from the
middle-class people living.
It is made with the intention to fulfil the requirements of sports. It comes third in the
list of Forbes after Nike. It allows customization in its products for the purpose to satisfy the
needs and wants of customers’ satisfactorily. It is also is in partnership with music app
Spotify. It is for gym members, athletes as well as for the person who are enthusiastic
towards sports.
Reebok: It gives consideration to everyone in the world. Its age group starts from the early
10- 33 years old individuals. It makes its product on the basis of choice such as giving colour
pink and whitish to females range and for males, it is in usually black as well as blue.
It mainly focuses on branding of the cross-fit product, as because to differentiate one
product from others so that customer can easily recognize it. In order to implement this, it
hires two popular fighters- Ronda Rousey and Jack Jones (Adidas, Reebok, 2019).

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DMC Mix analysis of the corporations chosen in the industry:
Nike: It uses both traditional and modern sources for the purpose of integrated marketing
communication so that it touches the heart of consumers easily (Percy, 2014). It makes its
advertisement through the help of agency Wiedon+ Kennedy. It is based on the
transformational model because it showcases the experience of consumers after purchasing
the product.
It designs its advertisements by keeping various factors in minds such as pride,
achievement, actualization and ambition. It also utilizes social media that is facebook, twitter,
Instagram. It makes various campaigns on the social media, some of them are very much
successful such as ‘Make it count, Just do it, Risk Everything, Find the Greatness. For
solving the queries of customers, it makes its own software that is Nike analytics and
responded 96% for giving good customer service facility (Chaffey, 2017).
Recommendations:
a. It is on the top but it does not mean that it has not to do anything as because in this
industry, there are various companies existing so, it has to apply game theory in its
marketing.
b. It has to concentrate on to reduce its cost, to adapt new marketing sources.
c. It has to broaden its product range, make a video of training done by athletes’
personalities as because of collective thinking theory.
d. Have to do merging with other companies so to gain the share in market.
Adidas: It focuses on the AIDA (Attention, Interest, Desire and Action) model methodology,
which puts efforts on awareness, interest, and desire as well as on the action part (Hassan,
2015). It majorly uses the television medium for its promotion. It sponsors sports football and
cricket and makes celebrities as its ambassador. Its tagline is very much strong that’ nothing
is impossible’ (Baker, 2014).
It sponsors Olympic event which is a major one as it is done after the time interval of
5 years. It utilizes social media so to capture the stage effectively as it is having the power to
send a message as well as video together, which is usually not in ordinary text messages. It
gives the consumers the opportunity, from which they can also come in the advertisement

STP, SWOT AND PESTLE ANALYSIS OF FOOTWEAR INDUSTRY
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which is given by the company with the actor. It also collaborates with rock shows, games as
well as channels of music so to capture the attention of youth.
Recommendations:
a. It has to make use of email for the purpose of marketing so to increase the awareness
of the brand and loyalty which in turn benefit in increasing sales and it is also
mentioned in collective thinking theory (Bergh, 2013).
b. In future, it has to promote its brand in a well-desired manner just as to be in the
number one position and it has to make its products with some variation so that
customer feels the difference and agree to shift to it.
c. It has to utilize chat rooms so to communicate with buyers in such a way to build a
bond of relationship and it is also defined in the network theory of marketing.
d. Billboards as well as transport ads used so to grasp the market as working-class
people don’t spend time in reading a newspaper or listening to the radio (Ryan, 2012).
Reebok: It utilizes various tools so to reach customers. In this, it makes use of infomercial in
both forms short as well as long. It is used for getting a direct response in the form of
purchase quickly. It sponsors teams in the IPL cricket and in tennis.
It also makes use of movies. Its taglines which are going famous are ‘less work, more
play, run easy, eye candy for your feat’.
Recommendations:
a. It should put effort on improving the promotional strategies used and further, it has to
promote its apparel products as demand is there, but consumers are not much aware
whether it exists in a company or not so here, network theory to be used (Simula,
2015).
Conclusion:
It can be concluded that DMC that is digital marketing communications plays an
important role not only for the one company but impacts the whole industry. Therefore, it is
mattered for getting more customers in the firm possibly by making and showcasing product
unique and different so that the needs of buyers are satisfied.

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While doing this study, it can be said that Nike is the top-performing company but,
Adidas as well as Reebok are also doing well. It can also possible that these two companies
may come first but, it can be done with only good DMC. So, all companies have to put efforts
for this consideration as it is a new trend.
Bibliography
Adidas. (2019). Reebok. Retrieved from Adidas:
https://www.adidas-group.com/en/brands/reebok/
Adidas. (n.d.). adidas. Retrieved from ADIDAS:
https://www.adidas-group.com/en/brands/adidas/
Baker, M. J. (2014). Marketing Strategy and Management. Macmillan International Higher
Education.
Bergh, J. V. (2013). How Cool Brands Stay Hot: Branding to Generation Y. Kogan Page
Publishers.
Chaffey, D. (2017). Digital Marketing Excellence: Planning, Optimizing and Integrating
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Danesi, M. (2014). Dictionary of Media and Communications. Routledge.
Frue, K. (2019). PEST Analysis of Australia: A Brief Look into Politics, Economy, Society
and Technology. Retrieved from PESTLE Analysis:
https://pestleanalysis.com/pest-analysis-of-australia/
Hassan, S. (2015). Strategic Use of Social Media for Small Business Based on the AIDA
Model. Procedia - Social and Behavioral Sciences, 172, 262-269.

STP, SWOT AND PESTLE ANALYSIS OF FOOTWEAR INDUSTRY
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Khan, T. (2013). STP strategy for New Product Launch-a Work in Progress. International
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Kingsnorth, S. (2019). Digital Marketing Strategy: An Integrated Approach to Online
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Reebok
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