Marketing 14: Strategic Management and Adidas Marketing Plan, NZ

This report presents a comprehensive marketing plan for Adidas in New Zealand, outlining the company's strategic approach to entering and succeeding in the market. It begins with an introduction to Adidas, its background, and its global presence, followed by a detailed discussion of its marketing goals and objectives, including sales, profit, pricing, and product objectives. The report then delves into market research, analyzing the apparel and accessories industry in New Zealand, identifying trends, and assessing the potential for sportswear. A crucial section focuses on the target market, defining demographic, behavioral, and psychographic characteristics. Furthermore, the report provides a competitor analysis, profiling key players like Nike and H&M. The 7 Ps of marketing (Product, Price, Place, Promotion, People, Processes, and Physical Evidence) are then applied to Adidas's strategy in New Zealand, followed by a discussion of financial information and projected outcomes. The conclusion summarizes the key findings and recommendations for Adidas's successful market entry and growth in New Zealand.

Running Head: MARKETING 1
Strategic Management and Marketing:
Adidas, New Zealand

MARKETING 2
Table of Contents
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Marketing Goals and Objectives.....................................................................................................4
Sales Objectives...........................................................................................................................4
Profit Objectives..........................................................................................................................4
Pricing Objectives........................................................................................................................4
Product Objectives.......................................................................................................................4
Market Research..............................................................................................................................4
Analysis of Target Market and Competitors...................................................................................5
Target Market...............................................................................................................................5
Demographic Characteristics...................................................................................................6
Behavioral Characteristics........................................................................................................6
Psychographic Characteristics..................................................................................................6
Competitors’ Profile.....................................................................................................................6
7 Ps of Marketing.............................................................................................................................9
Product.........................................................................................................................................9
Price...........................................................................................................................................10
Place...........................................................................................................................................10
Promotion...................................................................................................................................10
People.........................................................................................................................................11
Processes....................................................................................................................................11
Physical Evidence......................................................................................................................11
Financial Information....................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
Marketing plan of an organization is one of the major documents, which includes all the
processes and activities, which are needed to bring its products and services to the market.
Primarily, it is used for promotion and advertising of the products to its potential customers. This
report includes the marketing plan for a well-established organization, i.e. Adidas, New Zealand.
Adidas is the German multinational organization that offers a wide range of products to its
customers. Under this marketing plan, there is discussion about the marketing goals and
objectives of Adidas. It includes the market research, target market and leading competitors of
the organization. When an organization brings its new products to the market and people, then it
needs to conduct market research for analyzing needs of customers and current trends in the
market. Furthermore, the report uses 7 Ps tool of marketing that includes different marketing
strategies in context of Adidas. At the end, it includes the predictive levels of sales and profits,
which the company wants to attain in New Zealand by implementing different marketing
strategies and tactics.
Company Background
Adidas is a Multinational Corporation of Germany that is headquartered in Herzogenaurach,
Bavaria. It was founded in the year 1949 by Adolf Dassler. The organization operates its
business by offering a wide range of products, like; it manufactures and designs clothing, shoes
and different accessories. Adidas is a well-established organization and it is named as the largest
sportswear manufacturer in Europe. This is a holding firm of Adidas Group, which includes
various firms, such as; TaylorMade-Adidas Golf Company, Reebok Sportswear Company etc.
As of 2016, the total revenue of the company was €19.29 billion. Currently, the company is
employing over 53,731 employees in more than 160 countries and produces more than 660
million products each year and produces the sales of € 14.5 billion. By looking at the figures, it
can be suggested that the company has complex structure, but it keeps the things very simple,
fast and lean (Adidas Groups, 2017). It is the major reason that company is known as second
largest sportswear manufacturer in the world. The company has expanded its business in various
countries and now, it is planning to bring its operations to New Zealand.

MARKETING 4
Marketing Goals and Objectives
In the formulation of business plan, first step is to develop its objectives and goals for marketing
process. Under this step, the company will decide that what it wants to attain by introducing its
brand in New Zealand (Ait-Alla, et al, 2014). The marketing objectives of Adidas are divided in
four criteria, which are stated below;
Sales Objectives
Under this objective, the firm intends to significantly accelerate its sales and growth in earnings
till 2020 as a major part of this marketing plan. Adidas is expecting the sales to increase at the
rate between 10% and 15% per year in the period of 2017 to 2020.
Profit Objectives
Under this objective, the company is looking for to increase its profits and revenues to increase
from 10 to 12% on average during the period of 2017 to 2020. It will target that net income
should grow approximately 20 to 22% in this duration (Alexander & Ella, 2013).
Pricing Objectives
The company will set the prices with the objective of retaining the existing customers and
creating new customers. For existing products, it will use competitive prices and skimming
prices for the new lunched products. It will assist the organization in attaining pricing related
objective.
Product Objectives
By offering innovative and new products in New Zealand, the company wants to make its unique
brand image and to become one of the most talked sports brand in New Zealand. By these
products, the company aims to attract more and more customers and engage them to drive brand
preference in the country (Barney, 2014).
Market Research
Market Research is the process that is conducted by an organization for collecting the
information about market and market trends. It assists an organization in understanding the needs
and preferences of customers in a particular country (Cody & Jackson, 2016). In this report,
Adidas is expanding its business in New Zealand, so it needs to make research in New Zealand
apparel and accessories industry. In this country, the clothing industry has performed very well

MARKETING 5
over past few years, despite threatening retail circumstances. The sector is forecasted to grow by
a yearly rate of 1.1% over past years throughout the period of 2017-18 to total of $2.57 billion.
There is a strong demand of sportswear and foot wear.
The industry in New Zealand owed much to enduring regaining of economy, enhancement in the
employment rates and increase in the number of migrants, in some cities, like; Wellington and
Auckland. Another reason behind the increase in the revenues of this industry is increasing
household incomes, which also enhanced the confidence among businesses and customers. In the
industry, the number of international players is increasing in New Zealand industry (Cole, 2013).
Due to this, local players are confronting competitive pressure and low margin atmosphere in the
year 2016. In the year 2017, it is estimated that sales of retail industry will increase by 2.7%. The
figures from previous years show that sales volume trend for footwear, clothing and accessories
has increased in these years, following duration of decline in between 2012 and 2013. People are
very concerned about fashion and they are becoming more health concerned. It has increased the
sales of sportswear and shoes, which are used by the people for their exercise and gym. Adidas
will enter in this market by after considering these facts and figures that sportswear and apparel
industry in New Zealand will be proven profitable in the future (Dawes, 2009).
Analysis of Target Market and Competitors
When an organization plans to expand its business operations in other country, it has to
understand the needs and preferences of people and develop a target market on the basis of
similar taste and preferences. It will assist the organization in understanding the expectations of
customers. Apart from this, the above-mentioned market research will help Adidas in knowing
about its leading competitors in New Zealand industry. It is very important to analyze the
competitors and their market tactics to gain competitive advantage against them (Eden &
Ackermann, 2013).
Target Market
Target market is a specific group of customers at which the products and services of company
are aimed. Finding a target market is the process by which a company could determine its market
segments for increasing the demand of products in this target market (Varadarajan, 2010). It
includes the set of people for whom company will make its marketing and advertising efforts.

MARKETING 6
There are different characteristics, which can separate the market in different segments, like;
purchasing power of people, geography, demography and psychographics. In New Zealand,
Adidas will target the market, which includes the people, who are more interested in purchasing
sportswear. Adidas is the biggest sportswear brand in Europe and it has segmented the market on
the basis of psychographic, demographic and behavioral characteristics. In this country, Adidas’
target market will be the urban adults and youth with a creative value proposition of the brand in
competition of people’s lifestyle (Hill, Jones & Schilling, 2014). Its major objective is to
emphasize on usage to the urban areas and cities to approach the potential target market. In New
Zealand, the primary target market of Adidas will be young adults and children, who are
interested and passionate about the sports and fitness.
Demographic Characteristics
Under this criterion, the company will segment the market on the basis of age, income, religion,
family size, social class etc. Although, it currently aims at the people with the age group of 13 to
15 years but most of its customers are from the age group of 16 to 30 years, who are from the
higher and middle class families.
Behavioral Characteristics
This segment divides the customers on the basis of their knowledge, attitude, their feedback and
utilization of product. Under this segment, Adidas will primarily target the sports persons and the
people and non-athletes, who are motivated by or actually love sports (Keller, 2010). The
company has a long history of supplying athletic apparel and footwear at all levels of sports.
Psychographic Characteristics
Under this market segmentation, the customers are divided as per their lifestyle, values and
personality. In New Zealand, Adidas will target the market, which include well-experienced
people, achievers, goals achievers and hard workers.
Competitors’ Profile
In the New Zealand apparel and footwear industry, the company may face intense competition
from domestic and international players. There are so many competitors in the industry, which
have already established their business and operations in the New Zealand sportswear industry.
The companies are using effective marketing strategies and tactics to deal with the competitive
pressure in the industry (Kunz, Karpova, & Garner, 2016). In this country, it can be seen that

MARKETING 7
domestic players are dominated by the international players and they are facing more
competitive pressure from them. However, Adidas is offering its products with unique and
exclusive features, so it will be profitable for this to expand the business in New Zealand. The
profile of its major competitors in New Zealand apparel and footwear industry is stated below;
Basis Nike.com (NZ) Hennes & Mauritz Canterbury New
Zealand
Products and
Services
Nike is an American
based organization
that has its operations
in New Zealand and
engaged in
manufacturing and
designing the
apparels, sportswear
and footwear in global
market (Cwinkler.
2013).
The primary products
and services of the
company are to offer
athletic apparels and
footwear, i.e. sports
shoes.
Hennes & Mauritz is a
multinational
corporation that is
known for its fashion
clothing for women,
men, teenagers and
children in New
Zealand. Primarily, it
offers fast fashion
clothing and
accessories for the
people in the country.
Canterbury New
Zealand is the
sportswear provider
company that
primarily emphasizes
on rugby football.
This organization was
originated from
Canterbury area in the
country. In addition to
sports clothing, the
company offers sports
equipment also
(Harry, 2012).
Pricing Tactics The company is
implementing vertical
integration for setting
the prices of products.
It assists the
organization in
reducing the
avoidable costs. Apart
This company is
making efforts to
provide the quality
products at best prices
in comparison to any
other player in the
industry. Due to its
pricing strategy, the
The pricing strategy
of this organization is
created by setting the
higher prices of its
products because it is
supplying its products
as a wholesale
provider to the

MARKETING 8
from this, it is using
value based pricing
tactics.
company is known as
one of the largest
retailer in the world.
leading sports teams
at Northumbria
University. These
teams can afford the
higher prices of its
products.
Marketing Strategies Nike NZ is using
various
communication
channels for
approaching the target
people and it is using
different marketing
strategies to promote
its products and
services to customers.
The marketing team at
Nike in New Zealand
has introduced
creative message to
attract the people.
This organization is
using social media
strategy as its
marketing strategy, in
which it is
implementing many
social media
platforms for
promoting and
marketing its brands
and products.
The company is
sponsoring various
sports events in the
country, so that it can
effectively market and
promote its products.
For example, it
sponsors women’s
and men’s rugby
union clubs at Exeter
University. The
tagline of the
company is
“Committed to the
games”.
Supply Chain Supply chain of the
Nike is the engine that
drives its products all
over the world. Under
its supply chain
process, the company
has moved towards
developing long term
relationships with
some of the factories
Hennes & Mauritz is
making huge
investment in its
supply chain
processes to
competing with other
players in the sector.
It is implementing
innovative supply
chain practices, which
Under its supply chain
process, the company
is operating it’s all the
operations from its
headquarters and it
has established ware
houses and
distribution centres in
different cities of New
Zealand.

MARKETING 9
as their trusted
partners instead of
having short term
relationships with
various factories.
made it able to gain
the benefits over other
players in New
Zealand apparel and
footwear industry.
The cloths
manufactured at
different facilities
across the globe are
transferred to a
warehouse. In New
Zealand, the company
has its own
distribution centre.
However Adidas is facing strong competition in New Zealand, but it can establish its business
operations in the country by implementing effective strategies. The company may have various
competitive advantages in the country (Kotlar & Armstrong, 2012). The company is offering
quality products and its brand equity will offer it more competitive advantage over its
competitors. Supply chain process and distribution network are two major components, which
will assist the organization in gaining competitive advantage. In New Zealand, the company can
sponsor sports events to promote its products.
7 Ps of Marketing
Product
Adidas is manufacturing variety of products under its brands. The major product of the company
is foot wear and shoes. Available in different styles and designs, the shoes and footwear is
athletic and strong (Su, & Tong, 2015). In addition, the company offers accessories and apparels,
like; jackets, T-shirts, sweatshirts, shorts etc. These products are in demand all over the world.
Thus, the company is very much strong in sportswear.

MARKETING 10
Price
Due to its unique design, style and promotions, Adidas uses both skimming pricing policy and
competitive pricing as well. To operate its existing products, the company will use competitive
prices by looking at its competitors, like; Nike, Puma, H&M etc. But for the newly launched
products and services, the company will use skimmed prices (Pearce and Robinson, 2011). The
target customers of the company are the higher class people and luxury people, so it can offer the
products at comparatively higher prices. The organization never implements price penetration
strategy as that will impact its brand equity.
Place
In New Zealand, the company will sell its products by establishing its retail stores. Currently, it
has its exclusive retail stores in which the stock is supplied directly from the organization. Apart
from this, there may be some other multi-brand shops, which will have the footwear, shoes and
cloths of Adidas on display. These shops receive the products from distributor (Singh, 2017). In
addition, Adidas is offering its products online also. The offerings of the company will be
available on online shopping websites, like; Amazon.com, Myntra.com, Snapdeal etc. By
creating effective brand equity, operating margins will be high keeping its distribution channels
inspired.
Promotion
In order to bring its products and services to New Zealand, Adidas will use effective marketing
communication and promotion strategies. The company will use several marketing vehicles, like;
social media platforms, but most of the marketing process is focused on product placement and
television. Its creative team is well-known to influence the customers through attractive ads,
which are very well created, innovative and energetic (O'Sullivan, Abela & Hutchinson, 2009).
These ads will help the company in attracting the potential customers towards its products by
delivering them appropriate message. The company is using the tagline, i.e. “impossible is
nothing”. This statement shows power of the brand. In addition, the company can sponsor the
sports events in New Zealand and manufacturing the dresses for sports team. Developing
creating advertising campaign will also assist the organization in promoting its products in the
country.

MARKETING 11
People
Adidas has made a major focus on recruiting skilled and talented staff at their retail stores. It is
very important that employees at stores are customer-friendly that can help the company in
developing its customer base (Kelsey, 2015). The company is looking for the employees and sale
persons, who possess effective communication skills, so that they can interact with the customers
effectively. It will motivate the customers to purchase company’s products.
Processes
The company is using effective processes, which assist it in minimizing its costs. The supply
chain process of the company includes different strategies that impact its product delivery
positively. Distribution network of Adidas is very wide and effective. These processes will help
the company in minimizing the costs and increasing the profits (Peteraf, Gamble, & Thompson,
2014).
Physical Evidence
Physical evidence of a company shows the delivery of its products and services to the customers,
so that they can believe to its physical presence. When the customers think about the sportswear,
then the name of Adidas will come in their mind (Keat & Sam, 2013). The company will make
efforts to establish its physical evidence in the market by executing effective marketing
strategies. It shows the branding of company in the prospective market.
Financial Information
After creating a marketing plan, it is very important to develop a financial forecasting for its
sales and profits in the future (Rudolph, 2016). This will show the predictive levels of its sales
and profits in next five years. By looking at the previous figures of Adidas, it can be analyzed
that company is expecting to grow its sales by 15% in the timeframe of next three years. If the
company will use its effective strategies, then it will be able to enhance its sales. It is expecting
to grow at CAGR of 1.7% from the year 2011 to 2018. In addition, the profit objective of
company indicates that it is making efforts to increase its profits and revenues by 12% in next
few years (Hollensen, 2015). There are various factors, which will assist the company in getting
increased sales, like; increasing demand for relaxed footwear and shoes, awareness about healthy
lifestyles, higher income levels etc. If the company will not use these marketing strategy, then it
will grow but with a slow rate. In the future, the company will be able to enhance its market

MARKETING 12
share in New Zealand industry. The above-mentioned goals and objectives indicate the financial
intention of the company, which it wants to attain in New Zealand. The below-given table shows
predicted sales and incomes of the Adidas through business expansion in New Zealand.
If Adidas will not follow the tactics and strategies, which are mentioned in its above marketing
plan, then development and growth of company will be very slow. It will be not able to increase
its customers, which will make its sales and profits stable (Gordon, 2012). The company needs to
go ahead with different marketing strategies and tactics, so that it can gain more competitive
advantage against its competitors in the industry. By executing these strategies, the company will
be able to fulfill all the marketing and financial objectives in New Zealand.
Conclusion
From the above analysis, it can be concluded that Adidas is a well-established sports brand
across the world. The company is offering the sportswear products, like; T-shirts, footwear,
running shoes and other athlete products. The company has expanded its business operations in
different nations, now it is planning to run its operations in New Zealand. This report has been
created the marketing plan for company in order to attract the customers in NZ apparel and
footwear industry.
The industry has so many leading players, who are running this business there. The company
needs to develop various strategies to deal with these competitors. This marketing plan includes
various aspects in relation to Adidas in New Zealand. The company is expanding the business by
setting various marketing objectives, which will be fulfilled in next few years. It includes

MARKETING 13
different marketing strategies under marketing mix tool, which can be used in attaining these
objectives. At the end, there is the discussion about the predicted financial information about the
company. The company needs to attain the figures by executing given strategies and marketing
tactics. Thus, it can be said that it is very important to develop a marketing plan, when a
company plans for business expansion in other countries.

MARKETING 14
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