Adidas and Reebok Marketing Communication Strategies

Adidas and Reebok Marketing Communication StrategiesIntroductionThis reported is rendered with innovation to fall would the comparison in the commercializeing intercourse strategies and mix adopted by the tog discolorations Adidas and Reebok. The dual nocks argon functioning in a non-monopolistic serviceman-wide foodstuff environment which im produces the need to be grocery storeplace savvy and originative on the part of the profession halls such(prenominal)(prenominal) as Adidas, Reebok and many different established dirts to not only retain their existing merchandise component plainly also grow into youthful securities industry on a local, groundal and international plane. There is a pre-existing need to castrate strategies in context to determine, advertising, fruit lines, proceeds quality and commercialiseing communication strategies. Failure to do so on the part of the melodic line line houses could adversely affect the sales of the product and le ad the company and the product to an unwanted state of declination.The fact cannot be denied that the acrobatic shoe de multifariousnessity market has been emerging to be extremely matched and a few distinguish names such as Adidas, Reebok, Nike, Puma contribute successfully captured indis moveable market surgical incisions. These crisscrosss recognise the need to retain their market position and body of work towards market yield in the process. Adidas and Reebok, for the sake of exemplification have prove the fact that besides noble quality products, a correct market communication strategy and mix is vital for survival and simultaneous growth in a market which is constantly driven by a agonistic atmosphere.I intent to utilize the following techniques to present a comparative analysis on the strategies adopted by Adidas and Reebok primary investigateConsumers would be interviewed and info compi guide would be analyzed and inferences would be drawn on that basis.Secon dary ResearchSecondary Research would be gathering, analysing and segregation of data from websites, occupancy journals and books.Business Analytical Tools S.W.O.T. Analysis, Marketing MixMarket and literature ReviewAdidasThe German National Adolp Dassler could be credited with the creation of the phenomenal brand Adidas. His nickname Adi and the first syllable of his last name Das put together created the brand name Adidas. History states that Adolf was a shoe rabid who spent several hours in his workshop designing raiment with intent to perfect it and to surpass anyone in this line of work. His dedication towards his cause light-emitting diode to the creation of this brand which in todays day and age is the second scoop issue world(a) athletic shoe brand commanding a market position of 33% internationally after Nike.This brand came in to public eye with the 1926 Olympic Games wherein the sport star of the Games Jesse Owens wore Adidas shoes which per varianting at the Olymp ics. This led to instant recognition of this brand and soon the sales was reported to have gained massive momentum. The Olympic Games was the well-nigh crucial turning point in the muniment of the brand Adidas. From then on, Adidas, the Business house has been essentially sponsoring world(a) Sports Events, Olympic Games and many such events and has amassed mass popularity for their product lines. This strategy of the system has helped the brand gain colossal worldwide media coverage for their product lines and the sales have been reported to grow in continuity.Zidane, Beckham and Kaka be the celebrities who wear Adidas shoes while performing at the games. The dual effect of superior media coverage and the celebrity wearing Adidas creates a celebrity of sorts of the shoe brand Adidas. today celebrity soccer players such as Kaka, Zinedine Zidane, David Beckham and many more are organism sponsored by Adidas.Adidas has been successfully in existence for around 80 years univers e an integral part of the sports world providing hi-tech sports footgear, accessories and vestments. At the moment the business house takes reserve in commanding a world position in the athletic shoe brand market. Adidas products specially shoes are sold all over the globe being available in al around every country of the world with ternary retail outlet wooing the consumers proving the fact that the business house has cut a distinctive niche for itself in the world-wide market.Adidas has graduated from a small workshop in a little know German village to a world renowned global enterprise. (http//www.adidas-group.com/en/ourgroup/history/history.aspx)The distinctive logo it possesses and the catchy advertising slogan Impossible is nada further consolidates the brand image and popularity.ReebokReeboks United Kingdom-based ancestor company was started get by dint of to cater to one staple fiber need which was to help athletes run with hie of lightning. Joseph William Foster in 1890s created one of the first known political campaign shoes with spikes in them. By the period of 1895, Foster was in business handmade shoes by hand for the countrys top runners and not sooner much time his fledgling company, J.W. Foster and Sons, created success by ply to an international customer of highly known athletes. The family-owned business house with pride created the course shoes which were used by athletes in the 1924 Summer Games notable in the film Chariots of Fire.In 1958, Fosters grandsons commenced a companion company that was christened by them as Reebok, named for an African gazelle. In 1979, Paul Fireman, who was a partner in an outdoor sporting costlys distributorship, noticed Reebok shoes at an international transaction presentation. Later on, he went on to negotiate for the North American statistical distribution license and made a grand introduction of three running shoes in the U.S. that year. At the selling set of $60, Reebok was the most hi gh-priced running shoes on the market.Currently, Reebok International is a highly pronounced player in the sports and fitness products market, with a particular emphasis on footwear. Its prime strengths lied in its size and massive brand awareness. plot of ground athletic shoes are clearly its core products, concerns are being brought up over its comparative lack of interest in the associated athletic apparel market, which is over double the dimensions of the footwear global market. (http//bostonjobsource.com/reebok.html)MethodologyThe methodological analysis to execute this report successfully was primary and secondary method techniques.Primary method comprised of Consumer poll wherein a set of questions was asked to consumers of athletic shoes for their responses. The questionnaire comprised 10 questions based Reebok and Adidas drafted to draw answers which facilitated a comparative analysisWhile carrying out the secondary research, books and websites and learning modules were s tudied and comprehended.Employing the primary and secondary research techniques data compilation and analysis was carried out to draw inferences.http//media.katu.com/images/060124adidas_reebok.jpgAnalysis and Discussion philia Competencies (Jobber 2004)Adidas Core Competencies Technology Customer digest Brand recognition furnish chain Collaboratively competitiveReebok Core Competencies Trend Identification Ability to market to a niche segment Womens shoe design Design expertise Celebrity relationshipsS.W.O.T Analysis (Belch 2004)A S.W.O.T Analysis in conducted of a business house helps us in understanding the strengths of the organization, the weaknesses it is confronted with, the opportunities the organization could avail of and the threats which present harm its growth, diversification and existence.AdidasReebokStrengthThe prime strength of the organization is its 8 decades of existence in the global market. The use upment of high end engineering science in the production pro cess improves quality, precision and durability which are the most desired aspects by athletes. The organization has the largest international portfolio of celebrity sports ambassadors. The business house as a part of promotion sponsors football teams and has a high consumer brand loyalty mainly in U.S.A and India. Statistics and surveys indicate that Adidas has the maximum level of popularity and brand image in India.Reebok presents ontogeny sales revenue enhancement. ON account of a part of a strategy to expand quality market share, the company indulged in the process of investing in three strike products and marketing platforms Performance, RBK and Classic. Reebok International happens to be the second largest producer of athletic shoes in the US, following Nike. The Reebok brand succeeds in accelerating sales pushing it closer to huge competitors such as Adidas. Reebok prides itself in being the number two or number three brand in most of its global markets. It dominates o n 10% of the global market. The business house succeeds in change magnitude profits even though retail conditions are challenging.WeaknessThe pricing strategy of Adidas for all its products including athletic footwear lacks flexibility and is highly soaked and this proves to be a weakness in a general price conscious economy. Adidas is hovered over with a close competitor in the form of Nike, Puma and many more in the global market. The Indian subcontinent, which in now identified as a potentially growing market with high potential of revenue, the brand has not been showing good revenue results.The business has low market share in the apparel segment. Reebok has continuously focused on athletic shoes and not apparel. Here is where the business lags ass.The apparel market is twice as large as the footwear market and the competitors such as Adidas and Nike take advantage of this and sell their apparel products which add on heavily to their annual global turnover hazardAdidas shoul d avail the opportunity to explore new world markets in the global arena. Health consciousness among the people in general is creating a good need for athletic shoes which should be skillfully tapped by Adidas. productive advertising employed in continuity could open up opportunities of market growth and sustenance.The shoes are priced below average with a starting signal range of 45 dollars which is 15 dollars less than any other brand which sells at a basic 60 dollar price tag. Reebok could procession its price as it has a large consumer base worldwide and a price deviation is not expected to hinder sales but increase profitability.The organization could work on creating a fall apart brand awareness in order to increase volume of sales. The brand could employ the best of technology to add quality and precision to its products.ThreatStatistics show that Reebok, a competitor of Adidas has a good market share and employs a higher sum for market communication strategies. This pres ents a threat which is growing for Adidas. New entrant brands such as GAP, CAT prove to be a threat as they are eating in on the market share of Adidas which it has created over a period of timeThe brand is heavily reliant on footwear sales for its revenue input. This could pose a threat as there are continuous new entrants in the athletic footwear market. Reebok needs to diversify into other areas such as bags, sports equipments and fashion accessories to stay afloat in this highly competitive market which is unpredictable.Adidas commands a global share of 16% while Reebok stands at 6%Marketing Mix (Pickton 2005)ProductADIDAS This brand has a huge product line of athletic footwear and apparels making it one of the most sought out brands besides Nike. The product is highly advertised through sports events where it gains good media coverage. Adidas uses cutting edge technology to offer comfort and expression in their product which are light in weight. Undoubtedly, the products of Ad idas have great value for money. Adidas shoes are known to have a ensnare which the sole provides and this is on account of good design and is useful specially in hiking. They go with ease on the legs and prevent any charitable of twist or sprain.Reebok The product line of Reebok is limited to footwear. Reebok has a good line of womens footwear. The brand has invested highly in technology to better its product lines. In the apparel sector the brand is lacking far behind from Adidas.PlaceAdidas and Reebok have been selling in almost every nation of the world and they follows one level blood or an indirect channel to make their product reach out to the terminal consumer. The products are fabricate by the producer and it then reaches the retailer who in turn sells it to the final consumer.PriceAdidas shoes are priced higher than that of Reebok. Adidas can afford to mail higher than Reebok as Adidas is a far more established brand than Reebok. The quality of Adidas is known to be better than that of ReebokPromotionReebok The promotional technique used by Reebok is basic advertising. The brand needs to develop better promotional strategies. New punch lines and slogan should be used by Reebok to create an impact on the consumers. It is observed that Reebok has the potential to closely vie with Adidas.Adidas Sponsoring large scale sports events, adverting through different forms of media.Adidas have been constantly booked in brand building programs. Adidas has joined in with the strategy of high fund allocation to boost sales and compete. Adidas with their innovative campaigns have turn out to be at par and have to a large consummation created the much desired impact which they set out to create at the onset of bringing about an improvisation of their promotional propaganda.ConclusionIt should be understood that footwear is no longer considered as a product that just offers a sense of protection for feet. What was hitherto taken as a Want is at the present day a basic Need. Today, the footwear business is a widespread and dynamic global business operation comprising of huge economies of scale.The athletic shoe segment is tremendously competitive in nature with the phenomenal players such as Nike, Adidas, Reebok and New brace strategizing meticulously to retain their consumer market share and the small time players such as Puma attempting to gain large market share. The athletic footwear industry stresses branding more than any other competitive benefit. By the employment of advertisements, celebrity endorsements, varied promotions, and licensing agreements, the top enterprises or rather mark companies in this industry have allocated much of their resources to creating the much required brand recognition and loyalty.Significant features of this highly competitive market segment are expensive and continuous advertising, celebrity endorsements, brand awareness techniques etc. Nike, Adidas, Reebok and a few more brands are the market leaders in the world due to their market communication and mix innovative strategies. (Bovee 2003)RecommendationsIt is recommended that Reebok work on improving its promotional strategies. Reebok should also focus on the apparel segment which is a large and promising market. The business house has developed a good consumer base and can work on increasing the prices of their products as this would bring in higher revenue, part of which could be employed for advertisement and promotion expenditure.Adidas should work towards improving market share and being at par with Nike which is currently the world leader in Athletic footwear. Adidas should focus on roping in more celebrities to endorse their products as celebrities are undoubtedly crowd pullers. It is also recommended that Adidas improve its product lines substantially as variation in products could lead to better and improved sales which form a major objective of any business organization. (Pettit 2003)