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O.C. Ferrell Chapter 19 Case 19 - Mobile Marketing at Adidas - Swot and 5 P's

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O.C. Ferrell Chapter 19 Case 19 - Mobile Marketing at Adidas - Swot and 5 P's
Case 19 Mobile Marketing at Adidas

Analysis

Internal Strengths
• Huge advertising budget ($900 million dollars in 04)
• Sponsorships/cobranding with some of the biggest athletes (Beckham, Kobe, etc.)
• Established brand name: Historically largest share of soccer market in Europe (until 03)
• Hiring Nick Drake brought insider’s view of mobile technology and market

Internal Weaknesses
• “Second place” to Nike
• No longer the European premier soccer brand
• Smaller marketing budget than Nike
• Placed sponsorships with risky celebs “Kobe – sex scandal, Beckham – injuries, Missy Elliot – ?)

External Opportunities
• Increasing spending power of 12-24 year olds
• Rise of soccer’s popularity in US
• Growth of overall mobile market
• Mobile market relatively untapped in US

External Threats
• Nike
• Other mobile media “applets”
• Other advertisers in print (hence, their need to break the clutter)
• Other billboard advertisers (again, need to break clutter)

Target Market
• Basketball, baseball fans in US and Hockey fans in Canada
• Hip Hop market in US

Positioning
• Seen as a fashion statement in hip hop market
• To be a leading resource in mobile entertainment

Price
• $70-120 for Run DMC Style to Missy Elliot Boots
• Similar to Nike, possibly cheaper

Product
• Mobile downloads, backgrounds, etc.
• Sporting apparel including shoes, clothing, etc.
• Hip hop fashion apparel
Place
• Global (sponsorship of World Cup)
• National (Japanese advertisement, Greece upset victory)
• Regional (Road to Lisbon, sponsorship of regional major league teams)

Promotion
• Reach to Hip Hop market through song lyrics
• Guerrilla marketing through campaigns in Japan
• Viral marketing through Impossible is Nothing campaign
• Reach to mobile youth market as young as

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