Adidas And Reebok Core Competencies Marketing Essay

Introduction:

This reported is offered intent to attract would the comparison in the marketing communication strategies and blend adopted by the shoes brands Adidas and Reebok. The dual brands are working in a non-monopolistic global market environment which imposes the necessity to be market savvy and creative on the part of the business houses such as Adidas, Reebok and many other established brands to not only maintain their existing market segment but also grow into new market on a local, national and international airplane. There is a pre-existing need to modify strategies in framework to costs, advertising, products, product quality and marketing communication strategies. Inability to take action on the part of the business properties could adversely influence the sales of the merchandise and lead the company and the merchandise to an unhealthy status of declination.

The fact cannot be denied that the athletic sneaker brand market has been emerging to be extremely competitive and a few brand names such as Adidas, Reebok, Nike, Puma have successfully captured certain market segments. These brands recognise the necessity to hold on to their market position and work at market growth in the process. Adidas and Reebok, for the sake of exemplification have proven the actual fact that besides high quality products, a good market communication strategy and blend is essential for survival and simultaneous expansion in a market which is constantly driven by a competitive atmosphere.

I intent to work with the following ways to present a comparative evaluation on the strategies followed by Adidas and Reebok
Primary Research

Consumers would be interviewed and data put together would be analyzed and inferences would be attracted on that basis.

Secondary Research

Secondary Research would be gathering, analysing and segregation of data from websites, business journals and catalogs.

Business Analytical Tools: S. W. O. T. Analysis, Marketing Mix

Market and Books Review:

Adidas:

The German National Adolp Dassler could be credited with the creation of the phenomenal brand "Adidas". His nickname "Adi" and the first syllable of his previous name "Das" put together created the brand name "Adidas". History claims that Adolf was a boot fanatic who spent several hours in his workshop building shoes with purpose to master it and to surpass anyone in this line of work. His dedication towards his cause led to the creation of this brand which in today's era is the next best global athletic footwear brand commanding market position of 33% internationally after Nike.

This brand came in to limelight with the 1926 Olympic Games wherein the activity celebrity of the Games Jesse Owens used Adidas shoes which undertaking at the Olympics. This led to instant recognition of this brand and soon the sales was reported to have gained huge momentum. The Olympic Games was the most important turning point in the annals of the brand Adidas. After that, Adidas, the Business house has been essentially sponsoring Global Athletics Events, Olympic Game titles and many such occurrences and has amassed mass popularity for their product lines. This strategy of the business has helped the brand gain great worldwide marketing coverage for their product lines and the sales have been reported to increase in continuity.

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Zidane, Beckham and Kaka are the stars who wear Adidas shoes while carrying out at the game titles. The dual aftereffect of high marketing coverage and the celebrity wearing Adidas creates a super star of sorts of the footwear brand Adidas.

Today celebrity sports players such as Kaka, Zinedine Zidane, David Beckham and many more are being sponsored by Adidas.

Adidas has been efficiently in existence for about 80 years as an integral area of the activities world providing hi-tech sports activities sneakers, accessories and garments. At the moment the business house takes delight in commanding a global position in the athletic shoe brand market. Adidas products especially shoes are sold all over the globe being available in nearly every country of the world with multiple retail outlet wooing the consumers showing the fact that the business enterprise house has carved a distinctive specific niche market for itself in the global market.

Adidas has graduated from a tiny workshop in just a little know German town to a world renowned global venture. (http://www. adidas-group. com/en/ourgroup/history/history. aspx)

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The distinctive custom logo it offers and the catchy advertising slogan "Impossible is Little or nothing" further consolidates the brand image and reputation.

Reebok:

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Reebok's United Kingdom-based ancestor company was started off to cater to one basic need which was to help athletes run with swiftness of lightning. Joseph William Foster in 1890s created main known running shoes with spikes in them. By the period of 1895, Foster was running a business handmade shoes by hand for the country's top runners; rather than before much time his fledgling company, J. W. Foster and Sons, created success by catering to a global customer of highly known sports athletes. The family-owned business house with pride created the jogging shoes which were utilized by players in the 1924 Summertime Games celebrated in the film "Chariots of Flame. "

In 1958, Foster's grandsons commenced a partner company that was christened by them as Reebok, named for an African gazelle. In 1979, Paul Fireman, who was a partner within an outdoor sporting goods distributorship, recognized Reebok shoes at an international trade show. Later on, he continued to discuss for the UNITED STATES distribution permit and made a grand release of three running shoes in the U. S. that season. With the value of $60, Reebok was the most expensive running shoes on the market.

Currently, Reebok International is an extremely designated player in the sports and fitness products market, with a specific emphasis on shoes. Its prime strengths lied in its size and large brand consciousness. While athletic shoes are evidently its core products, concerns are being raised over its comparative lack of involvement in the associated athletic apparel market, which has ended double the dimensions of the shoes or boots global market. (http://bostonjobsource. com/reebok. html)

Methodology:

The methodology to perform this report successfully was main and extra method techniques.

Primary method made up of Consumer poll wherein a set of questions was asked to consumers of shoes for their responses. The questionnaire comprised 10 questions based mostly Reebok and Adidas drafted to pull answers which facilitated a comparative analysis

While carrying out the secondary research, books and websites and learning modules were examined and comprehended.

Employing the primary and secondary research techniques data compilation and analysis was completed to pull inferences.

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Analysis and Conversation:

Core Competencies (Jobber 2004)

Adidas Key Competencies

- Technology

- Customer focus

- Brand recognition

- Resource chain

- Collaboratively competitive

Reebok Primary Competencies

- Trend Identification

- Ability to market to a niche segment

- Women's footwear design

- Design expertise

- Celebrity relationships

http://www. allfreelogo. com/images/vector-thumb/swot-analysis-diagram-prev1267697786EyGuON. jpgS. W. O. T. ANALYSIS

S. W. O. T Evaluation: (Belch 2004)

A S. W. O. T Examination in conducted of your business house helps us in understanding the advantages of the organization, the weaknesses it is confronted with, the opportunities the business could avail of and the dangers which present harm its progress, diversification and presence.

Adidas

Reebok

Strength

The prime strength of the business is its 8 generations of presence in the global market. The work of high end technology in the production process boosts quality, accuracy and strength which are the most desired aspects by sports athletes. The organization gets the largest international profile of celebrity sports activities ambassadors. The business house as a part of promotion sponsors basketball teams and has a higher consumer brand commitment mainly in U. S. A and India. Information and surveys signify that Adidas gets the maximum level of popularity and brand image in India.

Reebok presents growing sales earnings. ON account of a part of a technique to extend quality market show, the business indulged along the way of buying three key products and marketing programs: Performance, RBK and Basic. Reebok International is actually the second greatest producer of athletic shoes in the US, pursuing Nike. The Reebok brand succeeds in accelerating sales moving it nearer to huge competitors such as Adidas. Reebok prides itself in being the quantity two or number 3 brand in almost all of its global market segments. It dominates on 10% of the global market. The business enterprise house succeeds in increasing gains even though retail conditions are challenging.

Weakness

The rates strategy of Adidas for many its products including athletic sneakers lacks flexibility which is highly rigid and this proves to be always a weakness in a general price conscious current economic climate. Adidas is hovered over with a detailed competitor by means of Nike, Puma and so many more in the global market. The Indian subcontinent, which in now recognized as a probably growing market with high potential of income, the brand is not showing good income results.

The business has low market talk about in the attire portion. Reebok has always focused on athletic shoes and not apparel. Here's where in fact the business lags behind.

The clothing market is doubly large as the shoes or boots market and the competition such as Adidas and Nike take benefit of this and sell their clothes products which increase heavily with their total annual global turnover

Opportunity

Adidas should avail the opportunity to explore new world market segments in the global industry. Health consciousness on the list of people in general is making a good need for athletic shoes that ought to be skillfully tapped by Adidas. Creative advertising used in continuity could open up opportunities of market expansion and sustenance.

The shoes are priced well below average with a starting range of 45 us dollars which is 15 us dollars less than some other brand which sells at a simple 60 dollar price. Reebok could improve its price as it offers a sizable consumer platform worldwide and a cost deviation is not expected to hinder sales but increase profitability.

The organization can work on creating an improved brand awareness in order to increase volume of sales. The brand could utilize the best of technology to include quality and precision to its products.

Threat

Statistics show that Reebok, a competition of Adidas has a good market show and employs a higher sum for market communication strategies. This reveals a threat which is growing for Adidas. New entrant brands such as Space, CAT prove to be a threat because they are eating in on the marketplace talk about of Adidas which it has created over a period of time

The brand is seriously reliant on footwear sales for its revenue input. This could pose a risk as there are continuous new entrants in the athletic shoes or boots market. Reebok must diversify into the areas such as luggage, sports accessories and products to stay afloat in this highly competitive market which is unpredictable.

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Adidas commands a global talk about of 16% while Reebok stands at 6%

Marketing Mix: (Pickton 2005)

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Product:

ADIDAS: This brand has a huge products of athletic shoes and apparels making it one of the most sought out brands besides Nike. The merchandise is highly promoted through sports events where it increases good media coverage. Adidas uses cutting edge technology to offer comfort and style in their product which are light in weight. Definitely, the products of Adidas have great value for money. Adidas shoes are recognized to have a hold which the exclusive provides and this is on account of good design and pays to especially in backpacking. They go with ease on the hip and legs and prevent almost any twist or sprain.

Reebok: The product line of Reebok is limited to shoes or boots. Reebok has a good type of women's boots. The brand has spent highly in technology to better its product lines. In the apparel sector the brand is missing far back of from Adidas.

Place:

Adidas and Reebok have been reselling in almost every nation of the world and they comes after one level channel or an indirect channel to make their product get in touch with the final consumer. The products are made by the maker and after that it reaches the retailer who in turn provides it to the ultimate consumer.

Price:

Adidas shoes are costed greater than that of Reebok. Adidas are able to charge greater than Reebok as Adidas is a far more proven brand than Reebok. The quality of Adidas may be better than that of Reebok

Promotion:

Reebok: The promotional strategy used by Reebok is basic advertising. The brand needs to develop better promotional strategies. New punch lines and slogan should be utilized by Reebok to set-up an impact on the consumers. It really is noticed that Reebok gets the potential to directly compete with Adidas.

Adidas: Sponsoring large scale sports incidents, adverting through different kinds of media.

Adidas have been constantly involved in brand building programs. Adidas has joined up with in with the strategy of high fund allocation to improve sales and compete. Adidas using their innovative campaigns have proven to be at par and also have to a large extent created the much desired impact which they set out to create at the onset of bringing about an improvisation of these promotional propaganda.

Conclusion:

It should be comprehended that shoes is no more considered as a product that just offers a sense of cover for feet. That which was hitherto considered as a 'Want' reaches the present day a simple 'Need'. Today, the shoes or boots business is a popular and powerful global business procedure composed of of huge economies of size.

The athletic footwear segment is greatly competitive in dynamics with the phenomenal players such as Nike, Adidas, Reebok and New Balance strategizing meticulously to maintain their consumer market share and the small time players such as Puma wanting to gain large market show. The athletic shoes or boots industry strains branding more than another competitive benefit. With the employment of advertisements, celebrity endorsements, assorted special offers, and licensing contracts, the top businesses or rather branded companies in this industry have allocated a lot of their resources to creating the much required brand recognition and commitment.

Significant features of this highly competitive market section are costly and constant advertising, celebrity endorsements, brand consciousness techniques etc. Nike, Adidas, Reebok and some more brands are the market leaders on earth because of the market communication and mix ground breaking strategies. (Bovee 2003)

Recommendations:

It is preferred that Reebok focus on increasing its promotional strategies. Reebok also needs to give attention to the apparel segment which is a sizable and promising market. The business enterprise house is rolling out a good consumer bottom and could work on increasing the costs with their products as this would bring in higher income, part of which could be employed for advertising campaign and promotion costs.

Adidas should work at improving market share and being at par with Nike which happens to be the world innovator in Athletic sneakers. Adidas should concentrate on roping in more stars to endorse their products as superstars are certainly crowd pullers. It is also advised that Adidas improve its product lines substantially as deviation in products may lead to better and much better sales which form a significant goal of any business corporation. (Pettit 2003)

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