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

Case 19Mobile 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 12

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