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A. INTRODUCTION
Executive Summary
Adidas Inc. is a marketer of sports apparel and athletic shoes. The German
manufacturer, through its marketing strategy which rests on a favorable brand image,
has evolved into a large multinational enterprise. In keeping with the brand image is its
association with the distinctive logo and its advertising slogan, "Impossible is Nothing."
In order to maintain and sustain this image, the company makes huge investments in
advertising and brand promotion.
At the critical time of global economic crisis, Adidas will react to the consumers
pessimistic attitude and stressful emotion during this period. It may become a good
chance for Adidas because it can take advantage of its previous advertising way of
Impossible is Nothing campaign by sponsoring sports stars to express the corporate
philosophy of grit, determination, passion and humor, giving people more courage and
psychological comfort in face of economic crisis.
But besides that, we also focus more about family function especially in Asian
countries which emphasize a lot on family, which can provide caring emotional
communication. Therefore, from both strong-willed hero worship and water-like fork
environment, customers can easily link Adidas image with not only strength, but also
warmth. The preferred media we choose are TV, specific magazines, outdoor and
internet.

Company Background
Adidas was formed by German sports apparel by the founder Adi Dassler during
the 1920s. While Dassler was in his mothers wash room he decided to begin an
athletic shoe. After he made the shoe he had help from his brother andtwelve other
people to produce around 50 handmade shoes per day. These athletic shoes were
made for running and training.
For over 80 years, Adidas has been part of the world of sports on every level,
delivering state-of-the-art sports footwear, apparel and accessories. Today, Adidas is a
global leader not only in the shoe industry, but also in the sporting goods industry.
Shoes from the Adidas are available in virtually every country of the world. Oddball is
proud to carry quality large size Adidas, (www.oddballshoe.com).
Recently Adidas and the NBA joined forces and made The Brotherhood. The
Brotherhood consists of Tracy McGRady of The Houston Rockets, Dwyane Wade of
The Miami Heat, Tim Duncan of The San Antonio Spurs, Chauncey Billups of the Detroit
Pistons and Gilbert Arenas of the Washington Wizards. When it came down to it Adidas
and the NBA came up with the slogan called Basketball is a Brotherhood.
The main focus of The Brotherhood was Adidas to sponsor the NBA. The way
these six players were selected was by their athletic ability which is why they are also
known as all stars. Then these six players decided to form a series that would help kids
to discover their dream by playing with NBA Stars.
A strong advertising and public Relation events makes adidas as a worldwide
recognized brand and it would be more sustainable in the world market.

B. SITUATION ANALYSIS
Adidas AG (pronounced [AH-dee-'dahs]; often in English, FWB: ADS) is a German
sports apparel manufacturer and part of the Adidas Group, which consists of Reebok
sportswear company, Taylor Made-adidas golf company, and Rockport. Besides sports
footwear, the company also produces other products such as bags, shirts, and other
sports and clothing related goods. The company is the largest sportswear manufacturer
in Europe and the second biggest sportswear manufacturer in the world, to its US rival
Nike. The company's clothing and shoe designs typically feature three parallel bars, and
the same motif is incorporated into Adidas's current official logo. The company revenue
for 2008 was listed at 10.799 billion and the 2007 figure was listed at 10.299 billion,
or about US$15.6 billion. The situation analysis consists of the market trend analysis
and competitor analysis.

Cultural Context
Consumer in the Philippines are well known as a shoe lovers that is the reason
why variety of local as well as international brands are entering the Philippine market
thru globalization to offer there different product particularly the sports apparel. In the
Philippines, Marikina city is known and even also outside the Philippines as the
Philippines Shoe Capital. Aside from the local brands, Filipinos also influence by
different foreign brand when it comes to shoes, one of the famous brands in the shoe
industry is the brand Adidas which is one of the favorite brands of the Filipinos when it
comes in shoes. Filipinos is consider as a fanatic of shoes weather men or women of
all ages, because in the Philippines, shoes symbolize or represent authority and power,
but they can also represent humility, servitude. In older times, not all people could afford
buying shoes (slaves often didn't wear shoes), that is why they are associated with

wealth, freedom and comfort, but also with the other side of the coin: vanity and
arrogance. And lastly, the reason behind the success of the shoe industry in the
Philippines is also because of the culture that Filipinos adopted from different countries
like United States of America, Japan and China who are also well known when it comes
in the shoe market.

Historical Context
Adolf Adi Dassler was inspired by a single idea when he made his first shoes in
1920, at the age of just 20. His vision was to provide every athlete with the best
footwear for his respective discipline. It was this principle that guided him right up until
his death in 1978. 700 patents and other industrial property rights worldwide are proof of
his permanent quest for perfection. His first shoe, made from the few materials
available in the difficult post-war period, was produced from canvas. A passionate
athlete himself, from the very beginning Adi Dassler was in close contact with sports
participants and was always present in person at important sports events. Adi Dassler
focused his work on the classic disciplines of track and field. Athletes wore special
shoes from his workshop for the first time at the 1928 Olympic Games in Amsterdam. In
the mid 1920s he was already experimenting with spikes. In the mid 1930s Adi Dassler
was already making 30 different shoes for eleven sports, and he had a workforce of
almost 100 employees. In less than two decades adidas advanced to become the
worlds leading sports shoe manufacturer.
After the turmoil of the Second World War, Adi Dassler made a fresh start. In 1947, with
47 workers, he began putting into practice the knowledge gained from the pre-war
period and also new ideas. Adi Dassler made the first post-war sports shoes using
canvas and rubber from American fuel tanks. In 1948 he introduced adidas as the

company name, a combination of his own first and last name. One year later he
registered the - to this day - unmistakable Three Stripes.
The breakthrough came for Adi Dassler when Germany won the Soccer World
Cup in 1954. In the legendary Final against Hungary, the German team wore boots with
screw-in studs by adidas.Parallel to the rapid developments in sport, Adi Dassler
strove to specialize and optimize his products. Adi Dassler was the first entrepreneur to
use sports promotion in order to make the public aware of his innovations. He started
using well-known athletes as advertising for his products. Many famous athletes such
as Jesse Owens, Muhammad Ali, Max Schmeling, Sepp Herberger and Franz
Beckenbauer counted themselves among the friends of the Dassler Family.
Aggressive publicity became one of the cornerstones of his corporate policy. From now
on, Adi Dassler came up with a product innovation for every major event, documenting
the superiority of adidas footwear. In constant contact with active athletes in a wide
variety of disciplines, he developed the optimal shoe for almost every sport. Together
with his son Horst, Adi Dassler created an international company that was, and still is,
present at all the worlds sporting events. From the mid 1960s, adidas also started
producing apparel for competition and training. Ball production began in 1963, and ever
since 1970 the Official Matchball at all major soccer events has been an adidas
product. Adi Dassler died in 1978, at the age of 78. Carrying on his heritage and his
ideas, his name and his developments will continue to help athletes in their efforts to
push the limits of performance, on into the new millennium.
Following the death of the company founder, Adi Dasslers widow Kthe and his son
Horst took charge of running the company. Horst Dassler perfected the opportunities
offered by sports promotion. Under his guidance, adidas became a global leader in the

sector of innovations in sports marketing. He was also responsible for establishing the
brand in France. Horst Dassler died unexpectedly in 1987, at the early age of 51.
In 1989, adidas was transformed into a corporation (Aktiengesellschaft). At the
beginning of the 1990s, after a difficult transition period, adidas returned to its roots and
its original objective. Producing top products in top quality again became the companys
guiding principle. In 1991, adidas launched adidas EQUIPMENT, a line of performanceoriented, functional footwear and apparel. With streetball in 1992, adidas started
specifically addressing a younger target group. In 1993, Robert Louis-Dreyfus took over
management of the company. The Frenchman initiated the comeback of the Three
Stripes. In 1995, the adidas share was one of the most interesting new introductions on
the stock market. In 1997, adidas AG and the Salomon group combined to form adidasSalomon AG. Since 2001, Herbert Hainer has been leading the Group.
In October 2005, the Salomon business segment, including the related subsidiaries and
brands Salomon, Mavic, Bonfire, ArcTeryx and Clich, was sold to the Finnish Amer
Sports Corporation.

Industry Analysis
It is extremely high for the competition among industry rivals. The dominant
forces in the industry are Adidas and Nike who are striving to expand into new and
emerging markets while trying to outdo each other, specifically Adidas trying to overtake
Nike, by expanding product lines, increasing R&D and advertising costs. New Balance
and Puma which account for the smaller forces in the sports equipment industry and
need to make a presence in the online market place since they have rather low market
share in the retail market.

The threat of new entrants into the market is a low to moderately low because
the lack of barriers for entry. However, with dominant players like Adidas and Nike,
competition would make it difficult with the necessary capital to invest for a start up,
R&D, marketing and advertising, endorsements of popular and upcoming athletes who
do not have a contract with a company yet, and the ability for production whether
outsourcing or in-house.

It is high to extremely high for buyers because of the price sensitivity for buyers
purchasing bulk orders in the current economic climate. The buyer switching costs for
substitutes are low with an industry of only a few major companies, leads to a strong
bargaining power for buyers. And lastly, the threat of substitutes is moderate from the
consumer always looking for a reasonable price. With only a few major companies in
the sporting goods industry, it does not necessarily drive price down when the threat of
new entrants is low.

Market Analysis
The market demand from teenagers who should be Adidas and most important
target market increased very fast and Adidas started to expand its targeting market to
younger consumers because of its severe competition with Nike and Reebok.
Therefore, since the late 1980s, Adidas has worked to transform itself from a brand of
sneakers to a product integral to the sports culture. During this stage, the Adidas brand
has become so strong as to place it in the rarified air of recession-proof consumer

branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble.
Consumers are willing to pay more for brands that they judge to be superior in quality,
style and reliability. A strong brand allows its owner to expand market share, command
higher prices and generate more revenue than its competitors. With its Impossible is
Nothing campaign and strong product, Nike was able to increase its share of the
domestic sport-shoe business from 18 percent to 43 percent.

Competitor Analysis
Adidas guarantee their customers for having a good quality of product. As the
sportswear market is one of the fastest growing sectors, the customers choose a
sportswear brand based on how they feel about the quality, designs, and the price.
Adidas has two lager competitors Nike and Rebook. Besides that it would have several
small competitors. A SWOT analysis would be helpful to understand the competitive
environment.

SWOT Analysis
This SWOT Analysis can give insights to the Adidas internal strengths and
weaknesses and the external opportunities and threats of the business. These analysis
shows where the organizations do well and what areas do the Adidas need to improve.
SWOT
STRENGTHS
WEAKNESSES
Rigid pricing structure.
Largest International portfolio of
Limited design to offer compare to
sport ambassadors.
their competitors
Sponsors of different events around
Has not doing well in some country
the world
High brand image

OPPORTUNITIES
THREATS
Adidas larger competitor Nike
Has a great opportunity to expand
has a greater market share and
international market.
having a big budget in marketing
Increasing
demand
on
the
activity.
sportswear.
The several brands like CAT, GAP
Positive and increasing market
has increase their advertising
trends can increase through the effective
budget in recent years.
advertising.
Amount of competitors increasing
day by day.
Wide variety of products offer to the
Competitors may copy and make
customers.
several versions of the products at
different or affordable prices

C. OBJECTIVES
The overall objectives of this Advertising plan are:

To establish brand-switching of 40% from customers from competing

establishments within 5 months.

To increase sales revenue by the end of the year 2015.

To maintain or establish customer loyalty of at least 60% with its current

customers.

To increase the demand for Adidas by 40% by the end of 2015.

To reach out to the 50% of the target market around the Philippines with the use
of social media such as Facebook, Twitter, and/or Instagram.

To be committed to improve competitive position.

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To inform and persuade potential customers to try Adidas.

To increase or maintain customer awareness.

D. BUDGETING
The only method of budget setting that focuses on the relationship
between spending and advertising objectives is the objective-and-task approach.
This advertisement will cost:
Media
TV Commercials

Cost/media

Frequency

Cost

Daytime
Primetime
Radio Ads
Daytime
Primetime
Print Ads
Inside front cover

P80, 000.00
P250, 000.00

2 slots/day
6 slots/night

P160, 000.00/day
P1, 500,000.00/night

P9,000.00
P12,000.00

3 slots/day
5 slots/night

P27, 000.00/day
P60, 000.00/night

P37,000.00

12 cover/year

P444, 000.00/year

P16, 000.00

50 pieces

P800, 000.00

(7.26 x 11 with border)

Billboard (20x40ft)

(selected places)
TOTAL COST

P 2,991, 000.00

E. STRATEGY
Adidas: Shoe love is True love
A. TV Ad
The media vehicles that were used for television will be ABS-CBN Sports
Channel, TV5 basketball games and ESPN. Adidas can use this opportunity to
reach all the audience of the said TV channels. Many potential audience watches
in those channels.
B. Radio Ad

The reason for choosing this medium is because there are lot listeners. It can
reach a wide range of audience such as people going to work or people on their

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way home. Even students, housewives, men and others can listen to the radio. It
is good to run the ad during the evening where many workers and students go
home and where a lot of sports fanatic is listening during their rest time.
C. Print Media

The continuous used of billboard will definitely create awareness among the
target audience. You have to constantly remind them of your business.

And

also by using advertising at different sports magazine, the media vehicles were
going to be used for magazines were UAAP magazine, Chalk magazine and
Mens and Womens health magazines. By using brochures Adidas will distribute
5,000 brochures per week and will advertise in magazines every month for the
whole year
D. Internet

The constant innovation of technology allows everyone to access the internet

anytime. This is a good medium for advertisement with no cost at all. The recent
trend for entrepreneurs is posting their advertisements online. Adidas will
constantly update their Social Media account for the promos they can avail and
they will also post feedbacks from customers to enhance more the products they

are going to offer.

F. EXECUTION
Timetable of Activities (January-December 2015)
January

February

Interview all the people in the

organization.
Gathering of companys information
regarding its story, employees, staff,
and management.
Brainstorming with the owners
regarding on how the advertisement

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March

April

May

June

July

August

September

October

November

December

will look like.

Ideas will be screened and
assessed.
Final ideas will be processed.
Storyboard will be made.
Casts for the commercial will be
selected.
Filming of the commercial will start.
Editing of the commercial.
Final edit to be shown in the
management/owners for approval.
Search and bargain air time costs
for local networks to air the
commercial.
Adidas photo shoots for the
companys products.
Development of mobile app for
Adidas
Let the owners ideas contribute to
the features of the app.
Assessing the commercial if there
are changes to be made.
Search for other TV networks as to
where to air the commercial.
Making the final budget for the said
airing of commercial.
Have surveys to customers on how
they have known Adidas
Open ideas to management about
promos and packages.
Create different social media
account.
Update followers of these accounts
regarding updates on products,
promos, and packages available.
Contacting a known TV network to
fully air the commercial and widen
its reach on a national level.
Assessment of the whole
advertising campaign through
feedback from the social media

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accounts and surveys from

customers to know how effective
the campaign is.
G. EVALUATION
After implementation of our plan, our next step is to evaluate our campaign to
check our track whether we are going towards the right direction which we planned
through this campaign. The evaluation strategy is:
After the execution sales have been checked. The sales of Adidas after the
execution of ad have been compared with the previous few months sales volume. The
sales volume has been increased after the ad/ campaign being executed. People have
become aware of the existence of the new products that Adidas offers. Also, customers
who want to avail Adidas products have been increased that also led to increase in
sales volume.