Adidas Marketing Plan

Read the following case studies, and view the images provided in Annexure 1, before answering the questions that follow:

Case study Part 1: Adidas launches its largest store in Africa at Gateway Shopping Centre

Adidas South Africa has opened a new Home of Sport concept store in Durban, at Gateway Shopping Centre. It’s the first of its kind on the African continent, and with an impressive retail footprint of 1 687 square metres, it’s also the largest Adidas store in Africa.

The Home of Sport concept is rooted in sport culture, showcasing the best of the Adidas brand through powerful visual storytelling.

Customers will find a truly immersive retail experience, from cutting-edge technologies and a Run Lab that tests gait analysis, to a unique Made for You section where footwear and apparel can be personalised with embroidery, engraving, badges and heat press.

Changing rooms are spacious and include a bra measurement facility and Radio Frequency Identification (RFID) mirrors that automatically detect product information to provide consumers with real-time colour and style options.
The store has a wide selection of best-in-class products across its Running, Outdoor, Training, Women’s, Football, Sportswear and Originals categories, with a premium offering of Stella McCartney, Terrex and Y3, as well as an exclusive DBN t-shirt range.

The space is hyper-local, with Durban culture and credibility woven at every touchpoint. The store offers a modern retail space with a dynamic layout that combines both functional and aesthetic elements.

The furniture is designed by murrmurr, with the moon range inspired by the night sky. Different moon phases are incorporated in the design – including the waxing, waning, crescent, full and new moon.

Kylie Wentzel’s carpet design was inspired by the pace of life in the subtropical city of Durban. The warm and bold colours in the design, the palm trees, surfboard and sandcastle – are all suggestive of vibrant coastal living.

The store installation was done by Arturo Tedeschi, who used the map of Durban as a generative element to add meaning and depth to his work. An interplay between layers within the sculpture engages with the surrounding light and
spatial store dimensions in an immersive experience.

Source: Bizcommunity. 2023. Adidas launches its largest store in Africa at Gateway shopping centre. Buzcommunity. [Online] Available from: https://www.bizcommunity.com/Article/196/462/239602.html [Accessed: 2023-07-21].

Tip for student: browse the sports products on the Adidas website (https://www.adidas.co.za/) to better understand their offering.

Case study Part 2: Nike concept store opens at Gateway

Global sports brand Nike expanded its complement of Nike Concept Stores in Southern Africa, with the opening of its fourth store at Durban’s Gateway Theatre of Shopping last week.

The other three Nike Concept Stores are also based in South Africa: Sandton City, Johannesburg; the V&A Waterfront, Cape Town; and Menlyn Park Shopping Centre, Pretoria. Consumers can expect to find the same look and feel at local Nike Concept Stores as those in Vienna, Milan and Paris.
The Nike Concept Store is unique in that it only stocks the Nike brand and, most significantly, the majority of its range of apparel, footwear and equipment can only be found at Nike Concept Stores, and nowhere else. Consumers are spoilt for choice, ranging from the most technologically advanced products on the market to a more subtle, sports inspired range.

Apart from offering the full men’s product range, the Nike Concept Stores all feature a dedicated area for women. Retail Director at Nike SA, Jenene Cronning, explains, “The Women’s range is a key aspect of Nike Concept Stores. The
women’s layout is showcased in each store as never before.”

Source: Bizcommunity. 2004. Nike concept store opens at Gateway. Bizcommunity. [Online] Available from: https://www.bizcommunity.com/Article/196/87/3859.html [Accessed: 2023-21-07].

Tip for student: browse the sports product on the Nike website (https://www.nike.com/za/) to better understand their offering.

Required:

For the purpose of this assignment, you have been assigned the role of Assistant to the Marketing Manager of Adidas South Africa. Given the strategic launch of concept stores, as outlined in the case studies provided, it is clear that traditional in-store retailing still has relevance.

You need to compile a marketing brief to assist Adidas. Your brief must be presented under the main headings of a marketing plan and should follow the format outlined in the questions that follow.

You will guide the Marketing Manager on how to solve the following problem:

“How can Adidas attract brick and mortar customers (i.e. foot traffic) using display advertising in their concept stores?”

Tip for students: please note that your brief must be motivated by secondary research that supports your ideas.
Question 1 (12 marks)

Evaluating consumer segments

There are two different segments (with notable differences) that the Marketing Manager has already evaluated for you. These are as follows:

• Existing Adidas customers.
• Existing direct competitor customers who shop at Nike.

1.1 Use the following table format to describe and motivate the two specified target market segments’ characteristics, from a psychographic segmentation perspective:

Use the following table format to describe and motivate the two specified target market segments’ characteristics from a behaviouristic segmentation perspective:

Compare your data from the tables above and provide two similarities and two differences between target market segment 1 and 2. (4)

Question 2 (23 marks)

Assessing environmental factors and competitor analysis

Analyse Image 1 and Image 2 in Annexure A, the local and international Adidas stores. Conduct a SWOT analysis on each storefront by completing the tables below. Motivate your choices.

Adidas Image 1 (4)

Adidas Image 2

Analyse Image 3, the local Nike concept store. Describe three ways in which Nike is attracting customers to their store. (3)

Compare Image 1 (the local SA Adidas store) with Image 3 (the local Nike store). Identify the perception of each brand as created by the storefront:

2.3.1 Adidas (2)
2.3.2 Nike. (2)

“Adidas is at the same level of prestige as Nike and therefore competes well in the market.” Do you agree with this statement? Motivate your answer using the information and references you have collected thus far.
(2)

Using the competitors identified above and ANY one other direct competitor, illustrate (draw) a positioning map using “sport performance” and “fashionability” to show the ideal position Adidas could occupy in the market. (6)

Question 3 (15 marks)

Marketing objective and marketing mix strategies

Consider your answers in Question 1 and 2 before answering the next question.

3.1 Conduct an extended marketing mix analysis that focuses on Adidas’s concept store environment.

Use the table template below to complete your analysis. Refer to each sub-question per element:

Question 4 (15 marks)

Marketing material portfolio

To address the marketing problem (“How can Adidas attract brick and mortar customers (i.e., foot traffic) using display advertising in their concept stores?”), the Marketing Manager needs you to design/create visual evidence of how you expect an in-store display advert to look.

You therefore need to design a mock-up of one in-store display advert that would be shown on a large TV screen.

Answers to Above Case Study Questions

Answer 1: The two specified target market segments’ characteristics from a behaviouristic segmentation perspective are discussed in the table below:

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