Case Study: Adidas

Marketing 1030
July, 16th 2015

Describe the elements that make up the marketing mix.

As a market-orientated organization Adidas continuously identifies and
reviews consumers needs to ensure its products meet these needs. It aims
to exceed customer expectations by adapting its product portfolio to meet
the changing needs of consumers. It is this focus on its customers, teamed
with product and marketing innovation, that plays a key role in Adidas
success.
Adidas determines what its consumers want and then use the four Ps of advertising:
product, price, place, and promotion to tailor their marketing strategy. For Adidas they were
among the first to see the potential in sports marketing, which sponsors different sport
competitions and athletes. They have been doing this since 1978, when they sponsored the
FIFA World Cup.

Explain the term sponsorship. Name a sponsorship deal

that you think was effective.
Sponsorship is defined as backing, supporting, funding or financing another individual or
team. Adidas has sponsored thousands of different athletes and teams across the globe over
the years. This recognition has bought them loyalty within the hearts of their customers, a
few of these include:

Jesse Owens 4 gold medals in Berlin 1936.

Cassius Marcellus Clay (Muhammad Ali) taking gold in the

boxing light-heavyweight division at Rome 1960.

Dick Fosburys revolutionary new back-first high jump technique at Mexico 1968,

known as the Fosbury Flop.

Gymnast Nadia Comanecis perfect 10 at Montreal 1976.

This case study demonstrates how Adidas used innovative marketing strategies in its
sponsorship deal with the London 2012 Olympic Games to engage with young consumers in
the UK and across the globe.

Analyze the importance of using both above-the-line and

below-the-line promotion for an effective marketing
campaign.
Above-the-line promotion refers to traditional methods of advertising, such as, print adverts
in magazines and newspapers, billboards or online and TV advertisements. This form of
promotion is expensive. Above-the-line activity for Adidas campaign included TV adverts
that showcased the best UK talent across sport, street and style. Below-the-line promotion
aims to reach more targeted groups of consumers. For example, through sponsorship deals,
direct marketing, public relations and social media. Below-the-line promotion targeted at the
youth audience was a key method for Adidas to achieve its marketing objectives. It used a
wide range of promotional activities to create deeper engagement with its audience, mixing
traditional media with an innovative use of social and digital channels. The scale of the
activation of this campaign was an industry first.
The importance of using both was that Adidas was able to reach many more demographics
with bot above and below the line promotion. They were focused on the younger 14 19 age
group, and the traditional above-the-line method was not as effective in reaching this age
group as it is for their older existing customer base. Using below-the-line promotion through
things like social media and YouTube videos, they were able to reach more of the younger
demographic. This helps them get younger, long lasting customers that will continue to buy
their products throughout their lifetime.

Evaluate the effectiveness of Adidas use of social media in

its Take the Stage campaign.
"Social media played an integral part in Adidas campaign. For example,
on Twitter #takethestage became the summer trend for supporting Team
GB. Videos on YouTube created hundreds of millions of views, including a
video of Team GB athletes singing along to Queens Dont stop me now. In
addition, a large photo booth was set up at Westfield shopping centre in
Stratford. Members of the public then entered the booth to show support
for Team GB. Videos of peoples reactions to David Beckham making a
surprise appearance received 3.2 million views, as well as international TV
coverage."
The use of Adidas below-the-line promotion through social media with the Take the Stage
campaign was a huge success. They were able to generate 8 million views on their
#takethestage content through YouTube. Out of that 8 million, 2.5 million of the views were
from 14 24 year olds. The Adidas Dont stop me now video of athletes singing the popular

Queen song, was the most viewed video on BBCs website during the 2012 London Olympic
Games. They also increased their Twitter followers by 25% in this time, with 128 million
impressions for the #takethestage hashtag. This also was reflected in it return on
investment. Adidas market share grew by 2% after this campaign, and had 100 million
product sales in 2012. This displays the effectiveness of this marketing campaign.