The increased pace of globalization in the recent decades has led to multinational companies expanding their presence across the globe. Customers now can avail many different varieties of products and services. This has prompted organizations to come up with innovative products which not only satisfy customer tastes and requirements but also ensure they get value for money (Hoyer & MacInnis 2009). Ferrell & Hartline (2013) mention that an effective marketing plan not only enables organizations to know what are customer tastes and requirements but also ensures creation of a positive brand image in their mindset. However, looking at changing customer tastes and requirements as well as changing dynamics of how businesses operate, the evaluation of marketing strategies time and again becomes important (Pride & Ferrell 2015).
Evaluating marketing strategies through marketing metrics…
In order to assess and guide future marketing actions as well as strategies, marketers need to have an insight into how their brand is performing in the market. This can be obtained through the marketing metrics which serve as a diagnostic tool to tell how the performance can be enhanced (Iacobucci 2014). The marketing metrics serve as a precedent that can be employed to make checks on the marketing strategies and performance, and comprise financial, behavioral, memory, physical availability, marketing activity and customer profile metrics (Pride & Ferrell 2015).
Source: News Vantage
Evaluating the marketing plan of Adidas, a pioneer sport shoes and apparel manufacturer…
From being a single company until the 1970’s, the Adidas group as of today operates under four different brand names. Adidas, which is into shoes and clothing accessories, Reebok which is again into the same, Rockport which is predominantly into formal footwear, clothing apparels as well as accessories & Taylor which primarily focuses on golfing equipment (Adidas Group 2016).
Source: Adidas Group
It can be said that the company has adopted a diversification strategy and continues to follow the same till date. Over the years, it has grown to be the second largest company in this segment after Nike & as per latest reports the company is outperforming Nike on an overall level (Kell 2016).
Cashing in on diversification…
Wit & Meyer (2010) point out that diversification allows firms to not only grow their overall revenues and market share, but also allows them to develop competencies in different sectors. It is clearly evident that one of the reasons Adidas is catching up with Nike is its diversification strategy as it markets its products in different segments and under different brands (Kell 2016). Not only have they created a positive image in consumers’ mindset but also they have successfully expanded their presence globally.
Effective Memory metrics through catchy taglines…
One of the other advantages of Adidas’ marketing strategy is the fact that they have catchy taglines which immediately catch the attention of consumers (Adidas Group 2016). Through their famous tagline ‘Impossible is Nothing’, Adidas has very succinctly specified the importance of being fit and also at the same time made consistent attempts to achieve what it wants (Adidas Group 2004). Via the means of this campaign, the company has over the years managed to rope in some of the biggest superstars across the globe in different sports; noteworthy examples being Lionel Messi in Football, Sachin Tendulkar in Cricket, Novak Djokovic in tennis etc. (Adidas Group 2016).
Source: Adidas Group
Also, at the same time the company through its differentiated targeting strategy has targeted youth and adults in the 14-40 age group who are passionate for sports (Adidas Group 2016).
Profiling consumers through customer profile metrics…
In short, it can be said that on one hand the company is attracting youth and adults who have a passion for sports through innovative taglines and at the same time through the means of celebrity endorsements, it is enhancing its popularity within this segment. Tp reinforce, Iacobucci (2014) states that the youth and adults are highly influenced by celebrity endorsements because they tend to idolize these celebrities and are more likely to purchase the brands they endorse as compared to others.
Another effective way in which Adidas is successfully marketing its products is via the means of sponsoring major sporting spectacles across the globe for instance, the London Olympic sponsorship deal by Adidas in 2012 was the largest set of sportswear rights in the history of Olympics (Pagano 2012). Adidas also record a breaking shirt sponsorship deal which the company signed with Manchester United (the largest football club brand in the world) which shows that the company intends to reach out to as many people as possible (Sale & Lawton 2014). In a way it can be said that by sponsoring global mega events and most loved sporting bodies across the world, Adidas is trying to expand its market presence across the globe. This can be supported by the fact that sponsorship of mega events is an effective strategy which firms use to expand their presence in different markets by not only making their presence felt but also encouraging more and more people to buy their products via the means of attractive advertisements shown during the events (Cornwell 2014).
All in all, it can be surmised that through diversification, apt employment of memory and customer profile metrics, differentiation targeting, use of celebrity endorsements as well as sponsorship of mega events and most followed sport teams across the world (Iacobucci 2014); the marketing strategy of Adidas is effective. The company is second largest after Nike and as per current growth trends which are higher than Nike (Kell 2016), might soon become one of the largest in this segment.
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