Description
Case analysis of Brand In Hand Adidas, Mobile Marketing at Adidas
Brand in Hand Mobile marketing at Adidas
Adidas: A company’s profile
• Founded by Adolf Dassler in 1920 • Became an international brand in 1974 • Outsourced production in1990 to concentrate on marketing • Became a public company in 1995 • 2004 : Launch of “impossible is nothing” • Localized advertizing to suit national markets • Main competitor Nike whose adv spent is $1.4 bn compared to $900 mn of Adidas
*Source - http://emarketingfab6.blogspot.com/2008/03/e-marketing-case-study-2-adidas-outline.html
Brand in Hand Concept
• Need to break through clutter and fragmentation using mobile marketing –
– average exposure to Adidas 8 minutes a year – Be on inside or front of cover – Sporting events and sponsorship yield no new customers • 50% media consumption to digital by 2007 • Increase in usage of mobile phones in target age group of 12-24 • Advent of new technology (2.5G and 3G)
Brand in hand concept
• Advantages of Mobile media over traditional media
– – – – Reduces advertisement clutter Delivered directly to the target audience Time sensitive Portability of print
• Difficulties in mobile marketing
– Dotcom burst of 2000 made higher management wary – Issue of trust : Korea Issue which resulted in Adidas’ ‘optin’ policy
• Faster technology adoption in Asia and Europe • Testing in European markets key to success in US
Brand in Hand Concept
• Adidas divided digital content into three tiers
– Free content : inexpensive media free of cost to attract users e.g. wallpapers . – Cost Plus content : small fees to cover the expense of creating e.g. ringtones – Fee based content : extra value for interview of celebrity
• Nike charged users for all contents
Success Stories of Digital Marketing – Adidas
• Yahoo portal takeover for Laila Ali – Impossible is Nothing campaign • Collectable wallpapers, ringtones resulting in 600,000 downloads • R2L campaign – sales of adidas licensed jerseys surpassed 2.5 million units
– Mobile tracker – 63,000 subcribers – Ringtones (priced < $ 1) – 10,000 downloads – Text advertising clips from R2L – 12,000 downloads
Road to Lisbon : Mobile Marketing
• Tagged in 13 of Europe's greatest soccer stars • Adidas media campaign – Impact – Involvement – Activation • Issues and outcomes in R2L – Not able to attract users not familiar with the game – Infrastructure failure – Lack of focus on 12-24 years old – Earning from subscription fees not transferred to them – Testing of waters turned into huge investment costs
Key Market - USA
• R2L and Match Centre failed to engage target audience (12-24 years) • US teenagers influenced by peer and reference group • Based on above, US brand strategy centered around “URBAN CENTRES OF COOL”
• Problems faced
– Low bandwidth available hence text messaging – Nike already a market leader with Air Jordan brand (targeted for basketball enthusiast) – Lower spending on mobile media by American youth
US Scenario
• Adidas strategy in US
– Partnered with MTV – Hip-hop has reached 45 mn Americans who spent $10 bn on music and merchandize – Missy Elliot campaign
• Promote the fashion line through mobile, online and face2face event • Delivery of exclusive product preview to attract customers and make them propagate the message (viral marketing)
Way Ahead
• • • • Mobile marketing – Not just another fad Will not completely replace traditional channels Effective through use of innovation Challenges
– Risks related to technology adoption – regional customization , 2.5G or 3G – Infrastructure support should be robust – Difficulty in measuring effectiveness
• New avenues
– Advertising in PC and Console Games – Online product customization – Understanding customer better
THANK YOU
doc_317923619.pptx
Case analysis of Brand In Hand Adidas, Mobile Marketing at Adidas
Brand in Hand Mobile marketing at Adidas
Adidas: A company’s profile
• Founded by Adolf Dassler in 1920 • Became an international brand in 1974 • Outsourced production in1990 to concentrate on marketing • Became a public company in 1995 • 2004 : Launch of “impossible is nothing” • Localized advertizing to suit national markets • Main competitor Nike whose adv spent is $1.4 bn compared to $900 mn of Adidas
*Source - http://emarketingfab6.blogspot.com/2008/03/e-marketing-case-study-2-adidas-outline.html
Brand in Hand Concept
• Need to break through clutter and fragmentation using mobile marketing –
– average exposure to Adidas 8 minutes a year – Be on inside or front of cover – Sporting events and sponsorship yield no new customers • 50% media consumption to digital by 2007 • Increase in usage of mobile phones in target age group of 12-24 • Advent of new technology (2.5G and 3G)
Brand in hand concept
• Advantages of Mobile media over traditional media
– – – – Reduces advertisement clutter Delivered directly to the target audience Time sensitive Portability of print
• Difficulties in mobile marketing
– Dotcom burst of 2000 made higher management wary – Issue of trust : Korea Issue which resulted in Adidas’ ‘optin’ policy
• Faster technology adoption in Asia and Europe • Testing in European markets key to success in US
Brand in Hand Concept
• Adidas divided digital content into three tiers
– Free content : inexpensive media free of cost to attract users e.g. wallpapers . – Cost Plus content : small fees to cover the expense of creating e.g. ringtones – Fee based content : extra value for interview of celebrity
• Nike charged users for all contents
Success Stories of Digital Marketing – Adidas
• Yahoo portal takeover for Laila Ali – Impossible is Nothing campaign • Collectable wallpapers, ringtones resulting in 600,000 downloads • R2L campaign – sales of adidas licensed jerseys surpassed 2.5 million units
– Mobile tracker – 63,000 subcribers – Ringtones (priced < $ 1) – 10,000 downloads – Text advertising clips from R2L – 12,000 downloads
Road to Lisbon : Mobile Marketing
• Tagged in 13 of Europe's greatest soccer stars • Adidas media campaign – Impact – Involvement – Activation • Issues and outcomes in R2L – Not able to attract users not familiar with the game – Infrastructure failure – Lack of focus on 12-24 years old – Earning from subscription fees not transferred to them – Testing of waters turned into huge investment costs
Key Market - USA
• R2L and Match Centre failed to engage target audience (12-24 years) • US teenagers influenced by peer and reference group • Based on above, US brand strategy centered around “URBAN CENTRES OF COOL”
• Problems faced
– Low bandwidth available hence text messaging – Nike already a market leader with Air Jordan brand (targeted for basketball enthusiast) – Lower spending on mobile media by American youth
US Scenario
• Adidas strategy in US
– Partnered with MTV – Hip-hop has reached 45 mn Americans who spent $10 bn on music and merchandize – Missy Elliot campaign
• Promote the fashion line through mobile, online and face2face event • Delivery of exclusive product preview to attract customers and make them propagate the message (viral marketing)
Way Ahead
• • • • Mobile marketing – Not just another fad Will not completely replace traditional channels Effective through use of innovation Challenges
– Risks related to technology adoption – regional customization , 2.5G or 3G – Infrastructure support should be robust – Difficulty in measuring effectiveness
• New avenues
– Advertising in PC and Console Games – Online product customization – Understanding customer better
THANK YOU
doc_317923619.pptx