The marketing plan intends to carry out market research on the sportswear industry which is a diverse sector covering a wide range of products in sports. The product of focus is the Adidas sneakers which are manufactured by the Adidas company founded and headquartered in Herzogenaurach, Bavaria, Germany. The company designs and manufactures footwear, apparel, and accessories. Adidas products are traditionally marked with a three-stripe trademark, which is used as a promotional logo. The target market of focus for the plan will be athletes and non-athletes who on various occasions have been using sportswear. Athletes prefer light sneakers when exercising as it offers less resistance thus conserving more energy. The preference for sneakers is changing from not only being an athletic shoe but also a fashion trend (Abbasi, 2020). The types of strategic changes required include; new markets for the current Adidas sneakers and the development of new athleisure sneakers for the new markets. The company’s strategy is the development of athleisure aesthetic sneakers that are versatile in their styling where the design is structured to be a perfect motif for almost any outfit, such as monochrome tracksuits and t-shirts, and jeans laid back style. The sneakers will possess similar characteristics as athletic sportswear.
The marketing plan entails performing marketing environmental factors for the product and analyzing the company strengths, weaknesses, opportunities, and threats that affect the product market. The set of marketing objectives which the company intends to attain by developing a new product are outlined. Further, a comprehensive marketing strategy is incorporated in marketing the product. This is achieved by assessing the various marketing variables such as product, price, distribution, and promotion. The plan also contains implementation and evaluation strategies to ensure effective marketing of the product.
Marketing environment factors
The company supplies and ships sneakers worldwide and it is bound to follow political procedures such as government regulations when selling the product online. The company also uses political forces as a method of the intervention of counterfeit products. Additionally, the company must follow laws such as international trade agreements, labor laws, Consumer safety product regulations, and Product safety laws (Frue, 2017). The company manufactures its product in China due to the availability of labor-intensive with low cost of creation as compared to North American countries. Adidas designs sneakers that match the interest of consumers available for any age, gender, and lifestyle (Ranjan, 2016). The company’s core focus group is health-conscious buyers with a love for sports. The company supports Olympics where they leverage marketing opportunities and attracting new consumers worldwide. The company is embracing technology that ensures durable solutions to athletic problems by using natural materials for its product.
|Strengths||· The company has a strong brand image which means there is a high level of popularity and brand recognition for the product (Bush, 2019).
· The strong market presence of the company in the key markets worldwide is a major strength of the product (Ranjan, 2016). The company operates in major markets such as North America, China, and Japan where its performance has been great.
· Adidas company has used sponsorships and partnerships for marketing purposes which is a strength of its product (Pratap,2017).
· The company has embraced an innovative marketing strategy focusing on the metropolitan cities where most of the product target market lives.
|Weaknesses||· The product is facing tough competition from other companies manufacturing products of the same purpose such as Nike leading to customer retention pressure.
· The product has quality variation due to the company outsourcing production to third-party manufactures which leads to low quality (Bush, 2019).
· The company products are relatively expensive as compared to other sports brands thus, most of the customers cannot afford the products.
|Opportunities||· The company has embraced product design innovation which has attracted and retained customers.
· The increased demand for athleisure products is an opportunity for the company to increase the production and sale of the product to the customers.
· Emerging markets in the globe are an opportunity for the company to tap it for the sharper growth of the product (Bush, 2019).
|Threats||· The market dominance by Nike products is a great threat to the Adidas products. Also, tough competition from other brands such as Puma and Under Armour is a challenge to the products (Ranjan, 2016).
· There is economic uncertainty in some important markets for the products including Russia which is affecting the financial performance of the company.
Related: Tesla: Strategic Marketing Analysis Paper | Research Homework Help
In ensuring the company’s new product dominates the market and outshine the dominant brand products like Nike, there are various marketing objectives that must be achieved. The company should have the intention of attaining a market share of twenty-five percent within a maximum period of a year. By increasing the market share of the product, there will be great dominance of the products than the counterparts enabling products to compete effectively. The company should focus on increasing the sales of products from the current level to thirty-five percent within a maximum period of one and a half years. Also, the company should focus on increasing the customer satisfaction rate of the product from eighty percent to ninety-five percent within one year. With an increase in product sales and market share, the company can experience an increase in revenues. Also, an excellent customer satisfaction rate of the products will give the company a competitive advantage.
Target Market Information
The typical market targets for the Adidas sneakers are the sports participants as well as non-athletes who are inspired by or really love sports. This marketing plan will focus on two types of targets, the sports athletes and non-athletes to grow the market of the Adidas sneakers. The target market group is the most influential consumer group in using the products. Sports activities require the participants to have strong and comfortable shoes that will enable the player to have a good time playing and enjoying the particular activity. Sports athletes are likely to go for shoes that have high quality due to the kind of sports. For instance, the football players will look for strong shoes that can withstand the pressure of using some force while playing to prevent muscle injuries, knee pain, leg injuries, back pain, and hip pain and not shoes that will get spoiled in the middle of the game. For non-athlete consumers, they are gradually adopting wellness and fitness activities that require them to use shoes also which are comfortable and fashionable. In most cases, the non-athletes tend to emulate the athletes on the kind of shoes they like wearing while playing and their views regarding the shoes. Other non-athletes who are influenced by fashion would like to have adorable shoes which are just for leisure and not for sporting activities. The company should take note and try to manufacture sneakers that can be used by the fashionist in streets apart from the sports shoes. According to Grand View Research (2018), the global athletic footwear market size has increased and it is expected to expand at the rate of over five percent from 2018 to 2025. This is an indication that athletes and non-athletes are buying sports shoes in high numbers making them key targets for the Adidas sneakers.
The company will ensure that the sneakers score is of high quality than the current. To attain high quality, the company should employ Fusion Frame System Technology for a high-performance shoe. Adidas company will ensure that the new street soccer sneakers are well designed to fit the consumers’’ requirements. The sneakers should have air cushioning and innovative foam cushioning. A thin plate is sandwiched between the cushioning systems to ensure effective support of the feet. This design will make sneakers to be effective with regard to impact absorbing. To appeal to a wide range of consumers, the sneakers should be produced in a variety of designs.
Having in mind that the company is introducing a new product to the market, the management team should conduct market research on the competitors and consumers. The purpose of conducting competitor market analysis will be to identify the pricing strategy of other companies in the industry. The research will help the management team in the process of formulating the product price. The consumer market research will help the company’s management team in determining the price-sensitive nature of the consumers. From the research, the management team will be able to formulate a good price for the product. In its effort to enter the new market, the management of the firm will incorporate the concept of penetration pricing strategy. This involves setting the price of its products and services at a relatively low level compared to its competitors (Al Badi, 2015). As a result, the new shoe will appeal to a wide range of customers considering the fact that consumers are price sensitive and their desire is to maximize their utility level.
Product distribution is essential in ensuring that a product is easily accessible in the market (Išoraitė, 2016). Thus, the company management team should be committed to ensuring that the Adidas sneaker is accessible in the entire market. To achieve the objective, the company management team has to formulate a comprehensive distribution strategy. The strategy should integrate both direct and indirect forms of distribution (Abril and Rodriguez-Cánovas, 2016). Direct distribution methods will be used within the local market. It can be accomplished by incorporating a vertical distribution system in its supply chain. Adidas Sneakers will be supplied to wholesalers and retailers in the entire domestic and international market. In addition, the management team of the company will open distribution outlets in all the regions of the globe. The company will also distribute its products to major retailers.
The success of any business depends on the degree of market awareness through effective communication (Adefulu, 2015). This means that companies venturing into the footwear industry must conduct comprehensive market awareness. One of the methods through which this can be achieved is through marketing communication. The company management team will have to include various market communication methods such as advertising, sales promotion, public relations, and promotion. Marketing using advertising methods will use various mediums such as radio, television, print media such as newspapers and magazines, and outdoor advertising through the use of billboards. However, to reach a wide range of consumers, the company management team will use internet advertising due to a vast number of customers can access the internet daily. In order to achieve the objective, the company will enter into a contract with major search engines such as Google and Yahoo. The contract will enable the firm to post information regarding Adidas sneakers on these sites.
The management team will also make use of the emerging social networking tools such as YouTube, wikis, blogs, and Facebook in creating market awareness. These social network tools are effective in creating awareness since the company will be posting videos and pictures of the product for people to view. The company will also post videos and pictures of the product on its website that will enable potential consumers to access information regarding the product and services. Lastly, the company will utilize outdoor advertising by entering into a contract with local advertising firms to provide billboards services that are located in strategic locations.
In order to ensure the effective launching of the product, the company’s management team has set a substantial amount in its marketing budget. Advertising using print media such as newspaper, magazine, and billboards, it will cost the company total amount of $450,000. For internet marketing using google and yahoo, it cost the company $400,000. Using social network tools such as YouTube, Facebook, Twitter, and MySpace cost a total amount of $800,000. Thus, the estimated total cost of the marketing will be $1,650,000. From the figures above, the marketing plan will be costly and thus the company should prepare to incur the costs. Also, the technology and design proposed in this plan will be costly while the price of the product is expected to be affordable for the consumers.
To measure the effectiveness of this plan, the focus will be placed on the performance of the marketing methods used. For the social networking tools, progress trace can be done by checking the number of subscribers, followers, likes, comments, and shares of the users. It is easy to measure the progress of advertising using these tools because of the way they have been designed. If there are more likes, comments, subscribers, followers, and shares, it is a sign of good progress of the plan. The management team can have a look at comments the users are posting on the social networks whether they are positive or negative regarding the product. Tracing the performance of advertisement using radio, television, and billboard can be tricky but the company can have a plan where consumers can be asked where they heard about the product and record for accountability purposes. Also, the plan progress can be measured by the purchase number of the consumers that will start flocking the company to buy the company. If the purchase numbers increase, it means the plan is working well while if the numbers are the same or have reduced, then the plan will be ineffective to the company.