Adidas Brand in the Hand

In: Business and Management

Submitted By jins89
Words 2872
Pages 12
Case 2 – Adidas Brand in the Hand

Introduction

This case deals largely with mobile and modern advertising. In the case it introduces Adidas’ first experiences with mobile marketing and how it was success. This was due largely to the increase in wireless technology becoming so abundant. The usage of this technology became apparently significant to people in their everyday life and Adidas took full advantage of that by advertising through cell phones (ring tones, applets, etc.) and even through some of the first massive Internet ads. Their ads were so successful they crashed the site. This lent immediate attention to the power of advertising through various and popular mediums.

Adidas was one of the first organizations to utilize online advertisements to their potential. They saw trends and reacted upon them. If one looks at exhibit 1, media consumption is based highly on wireless media. Their utilization of online media boosted their awareness extensively, however it is mentioned that their profit margin was slim in some cases.

An example of one of their successful campaigns came when they released an applet that allowed one to view live scores. Their projected sales were 30,000, however when they release the product halfway through the campaign they already more than doubled that number.

A key fact to note is that Adidas significantly less money on mobile media advertising than in Asia-Pacific or in Europe by roughly $4,000,000,000.
Another note is that Adidas, in Sweden advertised for 10 days on television for ringtones and sales shot up which resulted in 600,000 downloads.

Key Issues

One the main issues they have are their presence in the United States. They spend a significant amount on other parts of the world but not in North America. This is detrimental to them when it comes to facing off against powerhouses like Nike. Nike spent…...

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