Question

I chose Adidas!

Pick a tangible product that you are interested in and prepare a report on the Marketing Mix actually used for that product. Discuss this product in a single report describing Product, Place, Promotion, and Price. Divide the report into four sections and devote at least one page to each section.

1. Product

This section is the heart of the marketing mix and should describe the product offering and product strategy. The product includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value and many other factors.

2. Place

The section should describe the Place associated with your product. Place is concerned with making products available when and where customers want them. A part of place is physical distribution, which involves all the business activities concerned with storing and transporting finished products. The goal is to make sure that the products arrive in usable conditions at designated places where they are needed.

3. Promotion

This section should describe the Promotion associated with your product. Promotion includes advertising, public relations, sales promotion and personal selling. Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading and reminding them of the benefits of an organization or product.

4. Price

This section should describe the Pricing strategies associated with your product. Price is what a buyer must give up to obtain a product. It is often the most flexible of the four mix elements- the quickest element to change. It is an important competitive weapon and is very important to the organization because price multiplied by the number of units sold equals total revenue for the firm.

Answer 1

Marketing Mix for Adidas :

Product :

The products offered by the company are shoes, jerseys, shorts, gloves, shafts, heads and protective pieces. This company is into the manufacturing of the sports products and offers everything that a sport person might need. Adidas has four of its subsidiaries. One is on the name Adidas, itself. The second one is Reebok, which is the strongest of all subsidiaries. The third is the Rockpot which specializes in outdoor apparels, footwear and accessories. And the fourth is Taylor made that specialises in the golfing clothes and equipment. The main product of Adidas is shoes and the secondary product is the apparel. Adidas is known for its best quality and customer satisfaction. While its subsidiary, Reebok is stronger in the sales of shoes, Adidas is known to do better in the apparel section. The sports jersey, shorts, gloves, etc. are in great demand. It uses the strategy of providing the best quality products, though a bit expensive, to attract more customers.It provides the best of design and technology and is preferred by the most of the youngsters, specially the ones involved in sports.

Place :

The main and primary way of the sales of the products of Adidas are the retail stores. It has many exclusive outlets to which the company directly provides the products. Also, there are many multi brand showrooms to which the company provides the product. The third mode of distribution is through online. The products are available on fashion websites such as myntra.com and also Adidas has its own official website through which it sells its products. So the main distribution formats are : Manufacturing to Adidas stores to End customers; Manufacturing to distributors to multi brand showrooms to End customers; Manufacturing to Adidas website/ Online fashion websites to End customers. The company is very well known and sales are generally high through all channels of distribution, especially that of retail stores and multi brand showrooms.

Promotion :

The main way through which Adidas promotes its products is Television. The teams that are responsible for the ads are generally very creative and do a great job at making attractive ads that makes it so eye catching and also produces the desire in people to own the products. It has a very motivating tagline which says "impossible is nothing" which motivates people to buy the products. Adidas also uses the strategy of product placement when it comes to promotion mix in which it ties with the best sport players in the world and advertises its products by making these players use its products. It is a great way of sales as most youngsters follow sports and would love to wear the same brands as their favorite players. It is also involved in the sponsorship of some sports teams, especially football, which is a great way of advertisement. It also does marketing through events and campaigns.

Price :

Adidas uses the skimming price and also the competitive price strategy. It invest a good amount of time and energy in the designs and comfort of its products and therefore uses the skimming price strategy for its products. It keeps a competitive price also keeping in mind companies like Puma, Nike, Reebok, etc. For the unique and different designs of products that are newly introduced by Adidas, it uses skimmed price strategy.Because the brand is preferred by the high end customers and also the upper middle class, it marks it prices according to have its niche. The brand uses premium quality of raw material, expensive designing team, etc that ultimately results in unique designing and also premium quality products. Adidas does not drop the prices of the products that are sold by it. It uses the skimming price strategy for all its products including apparels. The good quality products and the comfort of them are the factors that makes the sales go high even after the high prices of products,