Comprehensive Digital Marketing Plan Report for Adidas Company

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This report provides a comprehensive digital marketing plan for Adidas, a leading retail brand specializing in footwear and sportswear. It begins with an introduction to digital marketing and an overview of Adidas, including its history, organizational structure, mission, vision, and strategies. The main body of the report delves into a detailed organization description, customer analysis focusing on demographics and market positioning, and a thorough SWOT analysis, highlighting Adidas' strengths, weaknesses, opportunities, and threats. The core of the report is the digital marketing plan itself, which outlines objectives, strategies, and an action plan, including digital marketing research, channel selection (Facebook, Instagram, SEO), segmentation, and the RACE framework. The plan aims to enhance Adidas' customer base and increase sales through various digital channels. The report concludes with a summary of key findings and recommendations, and it references relevant academic sources.
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Digital Marketing Plan
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organization Description.............................................................................................................3
Customer Analysis.......................................................................................................................5
SWOT Analysis...........................................................................................................................5
Digital Marketing Plan.................................................................................................................7
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12
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INTRODUCTION
Utilization of various marketing strategies over digital channels to take several
competitive advantages is call as digital marketing plan. Its more like a set of operations to
implement marketing strategies at the various digital platforms. In this report Adidas is taken as
an organization. Adidas was established in the year 1924 by the Adolf Dassler. Adidas is a retail
brand. Headquarter of the company is located in Herzogenaurach, Germany. Igor Landau is the
chairman and Kasper Rorsted is the CEO of Adidas Company. In this report various aspects of
the organization will be reported. Different aspects of the SWOT analysis will be reported. To
evaluate various opportunities a well diversified marketing plan will also be framed that will
project multiple aspects of organization.
MAIN BODY
Organization Description
Adidas is a retail brand that specifically deals in foot wear and sports wear
products. The company started its operations in the year 1924 in Germany. Today the company
is serving the globe retail market. Adidas is among the top brand in sports wear and foot wear
that is statistically justified by the company's sales stats and increasing trend of market share
globally. The market presence of the company's products are well justified with the facts that the
company management has reported the sales revenue of more then 21 billion. Currently Adidas
is employing to more then fifty thousand people across the globe that is significantly justify the
contribution of the company in generating employment world wide (Altstiel, Grow and Jennings,
2018). The organizational hierarchy of the Adidas is well diversified that involve multiple
departments based on the operational activity. The organizational structure of the company
allows the company management to achieve highest operational efficiencies that also involve
well balanced work load over all the human resources of the company.
Purpose: The management of Adidas is serving wide purpose with the operational efficiencies.
The company management wants to provide the best sporty experience with the help of quality
footwear and sports wear products (Armstrong and et.al., 2018). The purpose of the company
also serve the affordability aspect as the company wants to serve the best experience of foot wear
and sports wear in the most affordable price range. Another purpose of company's operations is
to promote sport culture across the globe to improve the health care in the general public.
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Mission: The primary mission of the Adidas Group is to present in the market as the global
leader in foot wear and sports wear products (Swaminathan, 2016). To improve the sport culture
the company management wants to achieve the best market growth by giving quality sport
products. Another mission that drives to the operations of the company is to promote the sport
lifestyle across the globe to improve the fitness in the normal people. To convey the ultimate
mission the company management has issues vision statement “ to be the design leaders with a
focus on getting the best out of the athletes with performance guaranteed products in the
sports market globally”. This vision statement has potentially depicted about all the sole
mission behind company's operations.
Strategy: The marketing strategies of the Adidas is based on various factors that enable the
company management to take all the potential competitive advantage in the market. The
company management follow the segmentation strategy that involves demographic,
psychographic and various factors of behavioural aspects that give the complete strategical
framework regarding market segmentation. The targetting strategy of the company also look well
diversified as the company cover different marketing channels such as social media marketing,
television and radio advertisements to target various age group people such as young adults,
adults and children's (Swaminathan, 2016). Based on the statistical sales records of the company
of recent years that depicts that the majority customer base of the company is between the age
group of 13-40 years of age and that also involve the majority consumer base are between the
age group of 15 to 30 years of age that involve all the young sports enthusiasts. The company
management aim to upper middle class and upper class people as the price of the company's
products is relatively belong to such class and category people.
On the basis of outcome attached with market segmentation and targetting the company
management frame the optimum marketing strategies to position the company's products in the
market. Market positioning of the company's products involve various social and health cause
that also depict about the vision and mission of the company to promote the health care among
the general people.
Goal:
To dominate the sports market by achieving the maximum profitability in the market.
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Customer Analysis
The market analysis of the sale of company's products show that the majority of customer
base is in between 15 to 30 years of age group people. The Adidas Group has achieved the new
sales of 21.92 bn euros that involve majority of share from the age group of 15 to 30 years of age
people. The expected or target customer base for the company is in between the age group of 13
to 40 years of age (Deepak and Jeyakumar, 2019). The market positioning of the company is
more youth or young customer's oriented that create a major impact or influence over the age
group of 15 to 30 years of people.
SWOT Analysis
Various factors involve in SWOT Analysis of Adidas that can be specifies as below.
Strength:
The company carry the legacy in sports products.
Adidas is well known brand that carry the image of youthful brand.
The company has the well diversified portfolio that allow to all sports enthusiasts to
connect with different products of Adidas.
The company owns more then 2400 stores world wide that covers all the sports freak
across the globe.
Adidas has the strong brand image that resulted into heavy turnover.
The Adidas group has a various strong collaborations with various organizations such as
international labour organization, international finance cooperation's and many other
international and national organization that resulted into strong company image (Bhasin,
2019).
Weakness:
The price range of Adidas products consist of premium and high price range that also
resulted into non affordability of the products specifically in the developing nations.
The company management outsourced almost 93% of manufacturing operations specially
in Asian region that resulted into high dependency over other entities and expensive price
range of products.
The company product line is limited and specific that many times look insufficient to
meet the consumer's requirements.
Product line expansion is also not look aggressive of Adidas.
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Insufficient resource utilization of the Adidas Group.
Opportunities:
Changing lifestyle of people in various developing nations has improved potential
market for the company.
In the recent years the increasing trend has witnessed of various premium products that
provided huge growth opportunities to all the big brands.
Improved economic growth of various countries has provided a huge business
opportunities by opening various new stores in such markets.
The management of Adidas can focus over product expansion that will create huge
business and growth opportunities for the company in the existing market.
Increased demand in Asian market specially of premium products. Recent sales figures
has shown the hike of more then 33 % in the demand of premium products in the Asian
market.
Backward Integration will also play a smart business strategy to improve the market
share for the Adidas in the market.
Threat:
Increased competition becomes the huge threat for the management of Adidas as the
company is facing the tough competition from other brands. Specially from the Nike that
is the top premium brand has given a tough competition to the Adidas.
Improved local entities presence in the various native market that also become a big
threat for the company management.
Increased supplier dominance specially for the Adidas as the more then 90 % of the
production is outsourced that also became a huge threat for the company management.
Various governmental regulations also create a big threat for the Adidas.
Digital Marketing Plan
A precise marketing plan is prepared to enhance the customer base of the company.
Various aims and objectives has also set in respect to marketing plan. A research will also
implemented over marketing of products to deal with associated challenges and opportunities
with the marketing. Action plan, race framework has also implemented. Marketing strategies
also evaluated for the success of the marketing plan. ADIDAS is planning to launch its new
shoes and to raise its sales it will conduct a digital marketing plan.
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Situational analyses
Strength:
Strong brand reputation
Global presence
High quality fashionable products
Weaknesses:
High prices of shoes and other trendy
products
Poor investment strategies
Opportunities
Globalisation
Technological advancement
Threat
High competition
Objective
Aim
To become market leader in this fashion industry.
Objective
To increase the market share of ADIDAS shoes by 25% till the end of 2020.
To raise sales of shoes by 20% within 6 months
Strategy
Product: Adidas will ensure designing of shoes become attractive so that more
consumers take interest in it.
Place: New shoe of Adidas will be available over all channels like retail, internet,
website and other associated channels for sales across the globe. It will use direct
retailing method to reach to end users.
Price: Adidas will use skimming pricing to gain attention of mass audience towards its
shoes.
Promotion: Adidas will promote over all the digital channels like Instagram, Facebook,
internet and websites. Company will also utilise other ordinary marketing channels like
radio, television for the marketing purpose of the new shoe line.
People: Adidas will provide motivation to its workers through rewards and incentives,
that strategy will help business in retaining talent and raising business performance.
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Process: Adidas will make communication with consumers through its website and
social sites and will ask their issues. It will try to resolve their problems through its social
sites on immediate bases.
Physical evidence: firm will make its interior so friendly and will maintain proper space
in its stores. Logo will be so attractive.
Action Plan
Digital marketing plan framed by the management of Adidas will channelise in the
following ways. Digital Marketing Research: The company management will follow primary and
secondary both the research to analyse about the various requirements attached to the target
consumer's (Steenkamp, 2017). To implement the primary research the company management
will conduct various product reviews and various interviews about the consumer's experience to
gather knowledge regarding the productivity and efficiency aspects of all the products and it will
involve the analysis about the expectations of the consumer's. The company management will
also follow the secondary research. To conduct the secondary research the company management
will gather information from all the previous conducted researches about the consumer
expectations. Market research will guide the company management in projecting various aspects
of the products based on the requirements of the target consumer's. Digital Marketing Channel:
Based on the outcomes of the researches the company management will finalize all the potential
marketing channels over digital platforms (Mueller, 2018). As per the figures among all the
digital marketing channels Facebook and Instagram has generated the best results. The company
will also address to various search engine optimization to projects the best product features based
on the expectations of the target consumer's. As all the marketing channels are finalized the
company management will focus over the action plan to project the various advertisements.
Segmentation will be based on demographic strategies as income and age will be taken
into consideration to target the people for Shoes of Adidas. Differentiated targeting will be
applied to gain attention of large audience. Apart from this, cost positioning would be best tool to
meet the set objective.
RACE Framework
To create strategies for the digital marketing the management of the Adidas will also
guide the RACE model. This model will also enable the management to manage all the
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marketing strategies of the company over digital channels. The framework follow the certain
approach that is summarised in the following ways.
Reach: Reach involve various approaches to increase the traffic over various sites that engaged
selling the products of Adidas (Buratti, Lanzara and Simoni, 2016). The management will
involve various strategies such as search engine optimization to improve the traffic and market
presence of products.
Act: Based on the strategical frame work the company management will implement all the
suitable action plans to improve the market reach of products.
Convert: In the process of convert the company management will try to convert all the
interested customer's by giving various offers such as discount and other offers to convert all the
interested people into customer's.
Engage: Even after converting the interested people into customer's the company management
will also interact with them time to time to maintain the proper customer relationship.
Objective Paid Earned KPI Tool Budget% Jan Feb March
Reach To increase
awareness of
new shoes of
Adidas
10000 5000 Sales
review
Paid
media
2000 2500 2800
Act Lead
generation
8000 4000 Sales
review
Website 2500 2600 2700
Convert Sales
conversion
5000 6000 Sales
review
Social
media
2600 2600 2700
Engage Customer
communication
2000 5000 Sales
review
Paid
media
2800 2900 3000
Control
The company management will set a short term targets and will timely monitor the results
from all the marketing channels (Ambrose and Harris, 2017). The company will also use
performance analysis to improve the impact of all the marketing channels. Adidas will control
over entire marketing plan through the use of sales review technique. It will help in knowing
effectiveness of this marketing plan for the shoes of Adidas.
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CONCLUSION
It can be concluded that a effective marketing plan is very necessary for the any company
including Adidas. With the help of this plan the company is able to promote their products and
services at large scale in all around the world. Here is marketing team of the company need to
develop some new and modern marketing strategies for use them in their marketing campaigns.
The company currently has great brand image in the international market. The reason behind last
statement is, company's all effective decision making and planning. There are great opportunities
for the Adidas to expand their business activities in new market segments with this marketing
plan. In the current time the company running its all business operations in progressive way with
the help of effective marketing strategies.
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REFRENCES
Books and Journals
Altstiel, T., Grow, J. and Jennings, M., 2018. Advertising creative: Strategy, copy, and design.
Sage Publications.
Armstrong, G. M., and et.al., 2018. Marketing: an introduction. Pearson UK.
Swaminathan, V., 2016. Branding in the digital era: new directions for research on customer-
based brand equity. AMS review. 6(1-2). pp.33-38.
Deepak, R. K. A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Mueller, A., 2018. DIgital Marketing Plan for Finn-Korkki.
Steenkamp, J. B., 2017. Customer Propositions for Global Brands. In Global Brand Strategy.
(pp. 45-73). Palgrave Macmillan, London.
Ambrose, G. and Harris, P., 2017. Packaging the brand: the relationship between packaging
design and brand identity. Bloomsbury Publishing.
Buratti, N., Lanzara, R. and Simoni, M., 2016. Technological innovation and marketing. a multi-
perspective analysis. Mercati e competitività.
Srinivas, D., 2019. A Swot Analysis Based Business Process Management System. International
Journal of Control and Automation. 12(6). pp.397-404.
Online
Bhasin, H. 2019. Adidas SWOT analysis – SWOT analysis of Adidas. [Online]. Available
Through: <https://www.marketing91.com/adidas-swot-analysis/>.
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