The first extension strategy that Adidas could consider is the idea of redesigning products. For example, as fashion tends to go out of trend or out of date, Adidas could reuse ideas from previous shoes and reincorporate those ideas in new shoes with slight adjustments. Since there are a large variety of designs for shoes, people will easily become excited over a different design, even though it may only be slightly different from one that was sold a couple of years ago.
The second extension strategy Adidas could consider is promotion. This includes offers such as discounts (i.e. 20% off, buy 2 get the 2nd one for half price), having a sale season (i.e. winter sales), limited time offers, or sponsorships. These promotions often work very well with footwear and apparel because these products are increasingly popular with Adidas. Having these promotions will increase the consumers’ desire for buying the products, and will even cause impulse buying, where the customer may buy something he/she did not intend to buy which leads Adidas to generate more sales and revenue. The third extension strategy Adidas could consider is extending to new markets. Since Adidas’ sales are mainly focused on Europe, North America and Greater China, one strategy to extend the product life cycle is to sell these products in other countries such as Russia, South America, different parts of Asia and so on, and entering new markets to promote their products. This could include any one of their three product lines – footwear, apparel and accessories. Links to Images: http://www.shoes2013.com/pic/Adidas_Running_Shoes/Adidas_3D_Running_Shoes_White_Grey_Yellow_1074.jpg http://www.nbajames.com/images/adidas-crazy-8-shoes.jpg http://www.worldfootballboots.co.uk/images/Football%20Boots/Mes%20F50%20adizero%20Messi%20Football%20Boots%200002.jpg http://www.adidas.com/us/product/mens-training-lightweight-hoodie/TZ191?cid=Z40292&breadcrumb=sxZu2Z1z13071 http://www.adidas.com/us/product/mens-basketball-rose-tech-shorts/TY246?cid=Z41792&breadcrumb=sxZu2Z1z13xgj http://www.adidas.com/us/product/womens-training-weekender-jacket/TZ354?cid=Z31197&breadcrumb=sxZu3Z1z13071 http://www.adidas.com/us/product/mens-originals-trefoil-tee/TL972?cid=X53105&breadcrumb=sxZu2Z1z13xgi http://www.adidas.com/us/product/training-naloa-sunglasses/D7521?cid=Q07824&breadcrumb=swZu3Z1z13071 http://www.adidas.com/us/product/womens-running-aktiv-marathon-10-shorts/QU822?cid=Z22171&breadcrumb=sxZu3Z1z13xgj http://www.adidas.com/us/product/womens-originals-big-trefoil-tee/WU473?cid=Z35441&breadcrumb=sxZu3Z1z13xgi http://www.adidas.com/us/product/originals-large-jersey-duffel-bag/WR443?cid=Z37705&breadcrumb=swZu2Z1z13071 Brief Description of Adidas' Product RangeAdidas has a great depth of products in relation to its breadth. Adidas has three main product lines – footwear, apparel and accessories, and they are all focused on a specific type of fashion (sportswear). Even though this may not seem like a lot, within those product lines are an extensive product mix, where products come in different sizes, colours and features (differentiated between female and male). For example, under apparel, there are both male and female clothing (jackets, shirts, pants) and within that the products come in many different colours and sizes. Potential Marketing ObjectivesLooking at Adidas’ product range, the company is doing very well in terms of providing footwear, apparel and accessories. However, Adidas could potentially look into providing a larger variety of sporting equipment (i.e. tennis rackets, badminton rackets, footballs, basketballs etc.) as it is a sporting goods company. Also, it is important that Adidas creates a constant stream of innovative and inspiring products as the fashion trends in sport products tend to go out of date rather quickly (i.e. people are constantly wanting to buy new shoes). Adidas should also do this because it creates continuous cash flow for the business which is an advantage to the business as it means that the profit earned from a product in the “maturing” stage of a product life cycle (PLC) can fund for new products introduced at the beginning of a PLC. According to Adidas’ 2011 annual report, the company stated that they should not use mass production or mass marketing, but rather identify and understand consumer’s buying habits, fitness levels and motivations for doing sports. This will help Adidas better understand their consumers and what to sell to them. It is important that Adidas creates an emotion connection between the company and the consumers and one way to do this is to market through social interaction both online and offline.
Works Cited: "Group Strategy Annual Report 2011." Adidas. Adidas Group, n.d. Web. 23 Jan. 2013. <http://adidas-group.corporate-publications.com/2011/gb/en/ group-management-report-our-group/group-strategy.html>. |
Archives
January 2013
Categories |
|