Addidas Advertising Essay

1364 words - 5 pages

PAGE PAGE 3 Pierce
TUIMKT501Module 4: Case AssignmentBackgroundIt should be noted that this is not the first Olympics that Adidas has participated in and there is a claim that the company has had its ups and downs over the years. In 1996, the company provided equipment for six thousand Olympians and in 2000 its participation in the Olympics with Olympian Ian Thorp helped contribute to the firm's success. Also, Adidas was the sole sponsor for the 2002 FIFA event taking place in Korea. However, Nike embarked on a FIFA advertising campaign. Nike asked the winners to wear a specific sign on their shirt, and many liked the idea of wearing a secret sign. While Adidas was the sole sponsor, Nike won in terms of branding as well as in equity share. So how did Adidas do in the 2008 Beijing Olympics?AdvertisingWhile Adidas has not competed well in the past, they hope the Beijing is different. Adidas has paid tens of millions for the podium rights to all of the Chinese Olympic teams. Nike has decided to do deals with 22 of 28 Chinese teams so that they'll compete in Nike gear - even though they'll be wearing Adidas on the podium. Currently Adidas has more than 3,500 stores in China right now, and by 2010 they are planning on having approximately 5,000 stores. So Adidas has a lot riding on the success of their advertising campaign. One of their firstfor Brands are personifications of organizations, products, services and experiences. In this way they are the primary sources of relationships with customers, promises to customers, and customer loyalty. The process of giving a 'name' or brand affiliation to a product has developed rapidly this century. Brand marketing grew alongside the consumer society, supported by the surge in consumer durables and the expansion of commercial television. Branding gives consumers the assurance that their next purchase of a product will give them one which is virtually identical. Brand relationships are created, and exploited by the manufacturer, through the tacit guarantee of quality and consistency. Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. Brands seek to meet needs and wants of consumers, and are therefore designed in order to sell more products. Firms seek to raise the product beyond simple use value; to give it more appeal than a generic use.I happen to agree with Dr. Fournier that people...

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