Marketing Plan for Adidas Australia: Waterproof Neon Shoes Promotion

This report presents a comprehensive marketing plan tailored for Adidas Australia, focusing on the launch and promotion of their new waterproof neon shoes. The report begins with an executive summary and table of contents, followed by an introduction that highlights Adidas's brand reputation and the purpose of the marketing plan. The company overview details Adidas's history and global presence, while the external environment analysis employs PESTLE and Porter's Five Forces frameworks to assess political, economic, social, technological, legal, and environmental factors, along with competitive dynamics in the Australian market. An internal environment analysis, including a SWOT analysis, evaluates Adidas Australia's strengths, weaknesses, opportunities, and threats. Competitive positioning and market segmentation strategies are then outlined, followed by a detailed discussion of marketing strategies. The report concludes with a set of recommendations for Adidas Australia to maximize the product's market success, supported by references.

Running head: MARKETING PLAN FOR ADIDAS
Marketing Plan for Adidas
Name of the Student
Name of the University
Author Note

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Executive Summary
Adidas is one of the fastest growing sporting brands in the world today and it is renowned for the
beautiful styles and designs of its sports shoes. Adidas is also seen to engage in the production of
sporting equipment and clothes that are comfortable to wear, elegant and sophisticated to look at
and which are endorsed consequently by leading athletes across the world. This report prepares a
marketing plan that will be used exclusively by Adidas Australia to promote a brand new
product, that is, waterproof neon shoes. The report engages in detailed situational analysis for
this purpose, points out important market strategies and strategies pertaining to competitive
advantage, and concludes with a number of important recommendations that can be taken into
consideration by Adidas Australia to draw as much attention and sales as possible for its
waterproof neon shoes in Australia.

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Table of Contents
Introduction......................................................................................................................................3
1. Company Overview – Adidas..................................................................................................3
2. External Environment Analysis................................................................................................5
2.1. PESTLE Analysis.............................................................................................................5
2.2. Porters 5 Forces Analysis..................................................................................................8
3. Internal Environment Analysis.................................................................................................9
3.1. SWOT Analysis of Adidas Australia................................................................................9
4. Competitive Positioning.........................................................................................................10
5. Market Segmentation.............................................................................................................10
6. Marketing Strategies...............................................................................................................11
7. Recommendations..................................................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................15

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Introduction
Adidas is one of the largest sportswear companies that is headquartered in Germany and
which runs operations in several parts of the world. Adidas has acquired name and fame over the
years and eventually, it acquired the status of a brand, because of the high quality of its garments
and accessories. This is a brand that is today, endorsed by leading sports personalities in various
corners of the globe and it has a very huge clientele comprising of men, women and children.
Adidas is renowned for its sporting garments and accessories, and as such it is quite famous for
its sturdy, durable and stylish sports shoes (Holtbrugge and Schuster 2017). This report
prepares a marketing plan for Adidas Australia, that it can use to market and promote a
new product of the company, which is, the waterproof neon shoes. The waterproof shoes are
meant to convenience users when they engage in sporting activities in wet weather or when they
venture out on the streets during or shortly after the rains, and the fact that these are neon shoes
makes it useful for players to wear them when participating in a game in the evening, after the
sun has set. The report is based on detailed situational analysis and outlines the competitive
positioning and marketing segmentation and strategies that are undertaken by Adidas Australia in
order to promote this product effectively. The report concludes with a number of useful
recommendations that Adidas Australia can take into consideration for the adequate marketing
and promotion of its waterproof neon shoes.
1. Company Overview – Adidas
Adidas AG is a renowned multinational corporation which officially came into existence in
the year of 1949 and which is headquartered in the city of Herzogenaurach in the country of

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Germany. The company engages in the design as well as in the manufacturing of clothing,
accessories and shoes and happens to be largest producer of sports garments and accessories
in the continent of Europe, while also being one of the largest producers of sports gear in the
world, ranking second only to Nike in this respect. The company was founded by a man by
the name of Adolf Dassler in the house of his mother, and the first important product
development initiated by the company was the creation of spiked sports shoes that made it
convenient for players to run on the fields. The spiked shoes made it possible for people
passionate about sports in Germany to use these for not just one but multiple types of
sporting events. The quality of the spiked sports shoes is something that was later enhanced
by the company by creating shoes that not only comprised of spikes but which were also
made using high quality rubber and canvas. Jesse Owens, the legendary sprinter from the
United States of America was persuaded by Adolf Dassler to make use of these spiked shoes
when taking part in the Summer Olympics in the year of 1936 (Holtbrugge and Schuster
2017).
The logo of the Adidas Company comprises of three stripes and this is a logo that is seen
to be used not only on the clothing manufactured by this company but also on its shoes, with
the logo chiefly being used as a marketing tool or aid. The branding of the Adidas Company
was purchased from a Finnish sporting company known as Karhu Sports in the year 1952,
and the success of this branding led Adolf Dassler to refer to his company as not Adidas but
The Three Stripes Company. One important feature of the brand name of Adidas that is
worth taking note of is the fact that it comprised of un-capitalized letters with stylization
being done through the use of the alphabet a in lowercase (Alipour and Sabzikaran 2018).

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The Adidas shoes in particular are quite distinctive in terms of their appearance and can
be used for playing various types of sports be it football, Golf, tennis or even baseball. The
shoes are designed in a way that these ensure absolute comfort for those who wear them, and
are also quite stylish in terms of appearance. Of late, the Adidas Company has also initiated
the manufacture of sweat suits for players, with this being largely preferred by tennis players
and basketball players. Many NBA stars are seen to endorse the sweat suits created by
Adidas. Adidas has acquired fame in recent years as well because of its memorable ad
campaign known as “Impossible is Nothing” launched in 2004, a campaign that was shortly
succeeded by a campaign that was specifically designed for the NBA season in America for
the year between 2006 and 2007 known as Believe in 5ive (Holtbrugge and Schuster 2017).
2. External Environment Analysis
This section will analyze the external environment in which business operations are
conducted by Adidas in Australia.
2.1. PESTLE Analysis
Political Factors – Australia is a country that falls in the category of a constitutional
monarchy and it belongs to the Commonwealth, with Queen Elizabeth II of England being
the head of the state in Australia. The city of Sydney in Australia is the largest in the whole
world and the capital of the country is Canberra. The political environment in Australia is
relatively stable with the country presently being under right wing rule (Howard 2019). The
stable political environment has facilitated a business like Adidas to conduct its operations in
the country without fearing any undue or uncalled for interruptions from the Australian
government. There are no stringent standards, rules and regulations established by the

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government of Australia that Adidas has to adhere to, in order to do business in this part of
the world.
Economic Factors – Economically, Australia is one of the most prosperous nations in the
Asia-Pacific region. The tax rate of the country stands at thirty percent at present. Some of
the key imports in Australia include products such as electrical machinery, mineral fuels,
vehicles, precious metals, medical apparatus, furniture and plastics. Some of the top exports
are natural gas, coal, gold, beef, iron ore, financial services, wheat, copper and educational
services (Howard 2019). The high rate of economic prosperity that is seen to prevail in the
country of Australia makes it feasible for a business like Adidas Australia to run its
operations without making too heavy an investment by generating considerable amount of
revenue and reaping significant profits at the same given time. The government does not
impose heavy excise duties and taxes on foreign businesses in the country, thus providing
them with the flexible and dynamic environment that they need in which to do business, in
both the short term as well as over the long term.
Social Factors – Society in Australia is a multi-ethnic society and one can come across
people from diverse ethnic, religious and cultural backgrounds living in Australia. Apart
from the white Australians who form the majority of the population, important ethnic groups
living in Australia include the Indians, Pakistanis, Greeks, Chinese, and the native
Australians known also as the aboriginal people (Lawson et al. 2019). The diversity that
prevails in Australian society and the inclusive approach that is adopted by Australians to
foreigners is something that has facilitated an international business like Adidas to not only
conduct business operations with success, in this part of the world, but also to thrive, with

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Adidas being able to locate its target audience amidst such a diverse and multi-ethnic
population quite easily.
Technological Factors – Australia is a country that is very advanced technologically and as
such, the use of the internet is very common in each and every part of the country. The
average Australian is seen to spend a considerable number of hours online every single day,
and most activities like shopping, business and even academic work are conducted through
the medium of the internet (Howard 2019). Adidas Australia is a company that has been able
to take advantage of this advancement in technology to set products via the medium of the
internet. The Adidas store online in Australia is widely used for the purchase of accessories
and garments while Adidas sporting gear, garments and accessories are also procured
through e-commerce platforms like Amazon Australia.
Legal Factors – The trading laws in Australia are quite far as are the consumer laws and
laws pertaining to business competition. Fair Work Act that was introduced by the
government in the year of 2009 is the most important legislation that influences business
operations in the country (Howard 2019). Adidas has been adhering to this and other
important business legislations in Australia since it arrived on Australian shores to do
business and has not run into any legal difficulties with the government or with local
businesses until now.
Environmental Factors – The country of Australia is one of the most breathtaking nations
in the world in terms of natural, scenic beauty and it is known particularly for its remarkable
bio-diversity. Yet this is a country that is susceptible to the dangers of global warming, being
one of the driest and most arid countries in the globe (Lawson et al. 2019). To combat the

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dangers of climate change it is imperative for businesses in Australia to conduct their
operations in an eco-friendly manner, and this is something that Adidas Australia has been
doing consistently for quite some time now. The use of plastic is kept to minimum and all
rules and regulations pertaining to environmental wellbeing are adhered to and implemented
(Lawson et al. 2019).
2.2. Porters 5 Forces Analysis
Competitive Rivalry – Competitive rivalry is very high for a business like Adidas Australia.
The company is seen to face stiff competition from its rivals in the industry such as Nike,
Puma and a company known as Under Armor and has to continuously come up with products
that are stand apart from that of its rivals (Taylor 2019).
Bargaining Power of Buyers – The bargaining power of buyers is also something that is
quite high when it comes to a business such as Adidas Australia. There are many competing
stores and brands as mentioned above, that offer products like sports garments and
accessories which are as good as if not better than the ones provided by Adidas, hence there
are several options for buyers to exercise at the time of buying sporting equipment, garments
and accessories in Australia (Taylor 2019).
Bargaining Power of Suppliers – Due to the prevalence of many companies in Australia
that engage in the manufacture of sporting goods, there are several suppliers who can cater to
the needs and requirements of Adidas and it does not have to depend solely on one or two
suppliers to acquire the raw materials needed to manufacture its products. As such, the
bargaining power of suppliers is low for Adidas Australia (Choi et al. 2015).

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Threat of Substitution – The huge demand for sporting garments and accessories in
Australia, a country that is well-renowned for its athletes and its success in the international
sports arena, implies that there are several companies and dealers in this part of the world
that regularly manufacture sports goods and accessories and which can at some point or the
other substitute the products offered by Adidas. At the very least, its competitors like Nike
and Puma can do so, if care is not taken by Adidas to produce unique and exclusive sporting
gear for its target audience in Australia (Kim 2017).
Threat of New Entry – Once again, it must be noted that the wide demand for sports
garments and accessories in Australia, primarily because it is a sporting nation, means that
there is plenty of scope and opportunities for companies to emerge, that manufacture sporting
equipment, clothes and shoes as such companies can readily locate the target audience they
need to sell their products and accessories at high, moderate or even low prices (Fu 2017).
3. Internal Environment Analysis
3.1. SWOT Analysis of Adidas Australia
Strengths – One of the biggest strengths of Adidas in Australia is that it is a powerful brand
and almost every Australian is familiar with the name of the company and the products it
manufactures. The company is also serviced by an excellent network of distribution (Kaser
and Oelkers 2015).
Weaknesses – The product line of Adidas Australia is quite narrow and it has not been
diversifying any of its products of late. It is also hugely dependent on third party suppliers for
acquisition of raw materials for production and outsources much of its manufacturing

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activities to the Third World Nations. The company has also not received too many
endorsements in recent years (Hertrich and Mayrhofer 2015).
Opportunities – The high scale demand for sporting goods in Australia implies that there is
plenty of opportunity for the company to grow and expand and introduce new products to
capture the attention of both existing and prospective customers. The waterproof neon shoes
is marketed adequately and properly will be sure to attract huge numbers of clients to the
company, the brand and its products (Auber et al. 2016).
Threats – There are many rivals that the company has in the country of Australia itself such
as Nike and Puma who offer products which are almost similar to those offered by Adidas.
Hence it has to keep all of its products as uniquely positioned as possible so as to cater to the
needs, requirements and demands of the target population effectively (Turner 2019).
4. Competitive Positioning
On the basis of the theory of competitive advantage, Adidas Australia will make its
waterproof neon shoes truly stand out in the market by virtue of the fact that these are firstly,
waterproof and are available in bright fluorescent colors unlike other Adidas shoes. The
neon colors and lights that come with these shoes will allow players to see each other even
when engaging in a sporting activity in limited light thus making it possible for young and
old sports enthusiasts to engage in games on a wet day and even after the sun has set (Mahdi
et al. 2015).

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5. Market Segmentation
Geographic Segmentation – The target audience of the waterproof neon shoes that are
marketed by Adidas Australia will be limited first to people living in New South Wales, and
based on the success of the product here a decision will be taken to expand the production and
sale of these shoes to the Australian capital territory and Tasmania and then eventually to the
north of Australia (Ratten et al. 2016).
Demographic Segmentation – The waterproof neon shoes that are to be launched in the
Australian market by Adidas will cater to sports lovers of all ages, be these school children,
teenagers, college graduates, young and middle aged working professionals and even people who
have crossed middle age and who love to take part in a game of football, golf, tennis or cricket
every once in a-while (Smilansky 2017).
Psychographic Segmentation – The waterproof neon shoes by Adidas Australia are meant to be
used by people who are mentally and emotionally inclined towards sports, who love being out of
doors and who would love to take part in sporting events, regardless of the weather conditions or
whether it is night or day (Smilansky 2017).
Behavioral Segmentation – The waterproof neon shoes by Adidas Australia will cater to people
who exhibit a love for sport, and who are willing to engage in sports at any given time of the day,
in rain and sunshine, in the evening or in the day time and who are willing to rough it out on the
sporting grounds for long hours. Specifically, these shoes are designed and styled in a way that
makes them ideal for robust and regular use (Langan et al. 2019).

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6. Marketing Strategies
The marketing strategies for the waterproof neon shoes by Adidas Australia will be analyzed
using the framework of the 4 P’s (Ang and Rusli 2018).
Product – The product that is being marketed is waterproof neon shoes by Adidas Australia. The
shoes are resistant to water logging, absorb water easily and come in bright neon colors that
allows them to be seen even in the dark. The shoes like all other Adidas shoes also come with the
characteristic spikes that make using them over rough and wet terrain quite easy to do (Lalulyan
et al. 2017).
Place – The waterproof neon shoes by Adidas Australia will initially be marketed in the city of
Sydney and other towns and locations in New South Wales. On the basis of its success in this
part of Australia, a decision will be taken as to whether or not the product should be introduced
in other parts of the country as well (Aubert et al. 2016).
Price – The waterproof neon shoes are going to be kept competitively priced at 500 Australian
dollars to begin with. If the shoes are well received by the target audience and the demand for the
waterproof neon shoes is high, the price can be hiked up in a slow and steady manner, eventually
making this product a well-branded and expensive product that sport stars and sport enthusiasts
would love to own and show off (Aubert et al. 2016).
Promotion – When it comes to promotion, Adidas Australia is going to make extensive use of
social media for this purpose. Social media platforms like Facebook, Instagram and Twitter are
going to be heavily utilized by Adidas Australia for the promotion of the new shoes, as social
media platforms facilitate the easy and quick dissemination of information and also allow for
visuals and other forms of media to be used as part of the marketing process. All the leading

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supermarkets and shopping malls in New South Wales will also contain advertisements of the
waterproof neon shoes by Adidas Australia and later such advertisements will be put up at stores
and malls in other parts of Australia as well (Holtbrugge and Schuster 2017).
7. Recommendations
In order to market the waterproof neon shoes in Australia in a successful manner, Adidas
Australia needs to take the following factors into consideration –
 Adidas Australia should provide adequate instructions about how the shoes are to be
maintained and used over the long term, so that customers get a good idea about the
value of the shoes and how these are to be cared for once the shoes are bought and
start being used (Kaser and Oelker 2015).
 Adidas Australia should use visuals and images as much as possible to promote the
waterproof neon shoes and should also post tutorial videos on social media channels
like Youtube explaining the benefits of wearing the waterproof neon shoes and
demonstrating how these are to be worn and then used by players (Taylor 2019).
 Adidas Australia should offer regular deals, discounts and rebates on the price of the
waterproof neon shoes in the initial days of its launch in the market. This will attract
wide sections of the target audience to go ahead and purchase the shoes and try them
out first hand (Ang and Rusli 2018).
Conclusion
Thus, there are quite a few tips, techniques and strategies that can be put in place by
Adidas Australia to market and sell its waterproof neon shoes. The waterproof neon shoes are

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undoubtedly one of kind and are certainly likely to go down with people in Australia who are
fond of engaging in sporting activities on a regular basis and who like to do so even in wet
weather or when there is not much light outside. Through the extensive use of social media and
also by keeping the waterproof neon shoes competitively priced, it is expected that plenty of
positive attention will be created concerning the product, which in turn will lead to decent sales
figures upon the launch of the product in the market.

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