Task 1

1. What is marketing?
Marketing has many definitions, mostly all the definitions are related with the
customer orientation and satisfying customers needs.
To start with the definition of the father of marketing, Phillip Kotler describe
s marketing as “Marketing is the social process by which individuals and groups ob
tain what they need and want through creating and exchanging products and value
with others.”
The Chartered Institute of Marketing-UK describes marketing as “The management pro
cess responsible for identifying, anticipating, and satisfying customer requirem
ents profitably.
And finally the American Marketing Association describes marketing as “Marketing i
s the activity, set of institutions and processes for creating, communicating, d
elivering, and exchanging offerings that have value for customers, clients, part
ners, and society at large.
All these three definitions of marketing explains you about the customer satisfa
ction in different ways, when considering to Philip Kotlers definition he says t
hat it is an process in which the individuals or groups gain their needs and wan
ts by creating and exchanging products and value with others, whereas CIM-UK def
inition is identifying, anticipating and satisfying their customer requirements
profitably. Thereafter the American Marketing Association explains that the cust
omers are satisfied by activities such as creating, communicating, delivering an
d exchanging offerings that have for their customers.

2. Characteristic of a marketing oriented organization.

Marketing orientation is identifying the customers’ needs and wants. After identif
ying, the organization tries to make competitive advantage by satisfying the cus
tomers’ needs. In order to determine customers’ needs the organization does a market
research, by the market research the organization identifies what type of a pro
duct they expect.
Usually firms go through 3 main steps, firstly the firm identifies the customers’
needs and wants through a market research, then the collected information are pr
omulgated within the firm and the products are developed as for the customers ne
eds. Finally when the product is launched to the market, the firm should monitor
the customers’ satisfaction and alter the product if necessary.
Some of the characteristics of a marketing oriented firm will be as follows;
• Wide use of market research – This is continuous collection of information of cust
omers needs and this could also include researching about the competitors too.
• Long product lines – This is that the organization will have a broad product line;
a market oriented organization will be having several related products. For exa
mple Adidas having a wide product line (shoes, T-shirts, etc.)
• Giving prominence to a products benefits to customers rather than on product att
ributes – A market oriented firm will emphasize on their customers’ rather their pro
fits or benefits out of the product. Market oriented firms will be always think
that the customers are the kings.
• Product innovation – This includes that the organization makes something new, this
that the organizations brings new products to the markets.
• Organization provides ancillary services – This is where the organizations offer t
heir customers with services like warranty, installations etc. This is done in o
rder to maintain an organizations and its customers’ relationship.
These are some of the features of a market oriented firm. This simply defines a
market oriented firm should understand its customer needs and make an effort to
provide its customer with the best product or service in an appropriate way.
3. Elements of Marketing Concepts
Marketing concepts are the main factors which should be considered by any organi
zation, everything done by a company will be focused on their customers. Marketi
ng concepts transmits that the customer are the king. There are four main market
ing concepts; all these four main concepts are related to the customers.
Four marketing concepts are as follows;
• Needs, wants and demand – Needs are the basic requirement of humans, for example p
eople need food, cloth, shelter etc. whereas wants are the things which satisfie
s a need, for example an Srilankan will need food but he/she needs dhal and rice
. Finally demands are the wants for a specific product with willingness to pay f
or it, example Hummer.
• Products and services – Product or service will be the final outcome of an organiz
ation; these are done in order to satisfy the consumers. These are in two types
they are the tangibles and intangibles. Whereas tangibles are the things you can
feel and see, this includes all the products. Intangibles are the vice versa of
tangibles, intangibles cannot be seen or felt, these includes all the services.
• Utility – These are the satisfaction the consumers gain out of the final product o
r the services offered by an organization. For example 24 hour banks, this is a
service offered by the banks where you can withdraw money in case of an emergenc
y.

• Exchange relationship – This is where two or more parties involved in order to exc
hange the goods or services they have, good example for exchanging relationship
is barter trade, this is exchange of goods for goods. Exchange relationship also
follows some procedures in order to make a good deal.
• Markets – This is a place where all the consumers and the sellers meet. This is wh
ere the consumer is able to buy the goods or services they need.
Those were the four main elements of marketing concepts. The four elements are i
nvolved with the customers’; therefore it is very important to have a good custome
r relationship.
4. Benefits and costs of a marketing approach
When approaching to a specific market, there are so many benefits and costs incu
rred. Any organization would appreciate the benefits of a product rather than th
e costs incurred in it. Organizations should be able to use all its resources ef
fectively and efficiently in order to cut its cost and gain benefits.
Some of the benefits and costs incurred in a marketing approach;

4.1 Benefits
• Profits – This is the income you get from the final product or the service. Once y
our product has penetrated into the market and starts making profit it benefits
your organization. Therefore this is the important benefit you get.
• Customer loyalty and trust – This is another important benefit, customer should ha
ve a good impression in the product, especially they expects good quality produc
ts for the money they pay. Once a product gains the trust and the loyalty among
the customers, this would have a long term benefit on the organization. Customer
s have trust in the product therefore they would pay even more to consume the ne
w products.

4.2 Costs
• Market research – Market researches takes a high costs in order to identify the cu
stomers needs and wants. Before marketing a product the most important fact is t
o research the market before commercializing, if the consumers will like the pro
duct.
• Gain attention for the product – These are the costs incurred in promoting a produ
ct, that can be by advertising. By doing this the organization gets the customer
s attention towards their product.

1. ABOUT ADIDAS
Adidas – a name that stands for competence in all sectors of sport around the glob
e. The vision of company founder Adolf Dassler has long become reality. The idea
was as simple as it was brilliant. Adi Dassler’s aim was to provide every athlete
with the best possible equipment. Thereafter the brand famous brand “Adidas” began.
It was started in the year 1920, when Adi Dassler made his first shoes using th
e few materials available after the First World War. Today, the adidas product p
ortfolio contains shoes, apparel and accessories for basketball, soccer, fitness
and training to adventure, trail and golf. The adidas name dates back to 1948,
deriving from the first two syllables of Adi Dassler’s first and last name.
In 1997, adidas acquired the Salomon group, and they had to be changed to Adidas
-Salomon AG. The Salomon group included Bonfire and the Taylor Made golf brands,
among others.
Adidas completed and introduced its revolutionary three-divisional structure in
2002. The brand segmented into three which are the Adidas Sport Performance, Adi
das Sport Heritage and Adidas Sport Style. The Sport Performance division produc
ts were focused on the sports performance market but have design appeal, which a
lso encourages the consumers to wear the products both on and off the court or p
laying field. The Adidas Sports Heritage division contains Adidas originals prod
ucts. Originals extend the unique and authentic heritage of adidas products to t
he lifestyle market. The Sport Style division houses Y-3, a collaboration betwee
n iconic Japanese designer Yohji Yamamoto and Adidas. Y-3 combines the mission o
f the sports brand with the vision of style to develop an unexpected, radical ap
peal and the future in sportswear.
In October 2005, the Salomon business acquisition was sold to the Finnish Amer S
ports Corporation. And thereafter the company changed its legal name to Adidas A
G.
And on January 31, 2006, adidas-Salomon AG acquired Reebok International Ltd. Th
e closing of the Reebok transaction marks a new chapter in the history of the ad
idas Group. By the combination of the worlds most well known and leading sports
equipment
manufacturers of this competitive world platform and well-defined and complement
ary brand identities, provides a wider range of products and a stronger presence
across teams, athletes, events and leagues.
Today, the new Adidas Group which has more than 25,000 employees across the worl
d, with more than 2,000 employees working at the company’s headquarters in Herzoge
naurach, Germany. This includes a team of designers, product developers and expe
rts for biomechanics and material technology researchers.
1.1 Mission Statement of Adidas
"Adidas-Salomon strives to be the global leader in the sporting goods industry w
ith sports brands built on a passion for sports and a sporting lifestyle.
We are consumer focused. That means we continuously improve the quality, look, f
eel and image of our products and our organizational structures to match and exc
eed consumer expectations and to provide them with the highest value.
We are innovation and design leaders who seek to help athletes of all skill leve
ls achieve peak performance with every product we bring to the market.
We are a global organization that is socially and environmentally responsible, c
reative and financially rewarding for our employees and shareholders.
We are committed to continuously strengthening our brands and products to improv
e our competitive position and financial performance.
In the medium term, we will extend our leading market position in Europe, expand
our share of the US footwear market and be the fastest growing major sporting g
oods supplier in Asia and Latin America. The resulting top-line growth, together
with strict cost control and working capital improvements, will drive over-prop
ortionate earnings growth. ."
2. Micro and Macro environmental factors which influence marketing decisions
2.1 Micro environmental factors
These are the internal factors which directly influence an organizations strateg
y. This includes:
Customers
Employees
Suppliers
Media
Competitors
2.1.1 Customers
Organizations survive in the basis of fulfilling their needs, wants and satisfyi
ng their customers need. If they fail to do so, it will result in a failed busin
ess strategy. Therefore an organization should mainly consider on satisfying the
ir customers, this is done by providing the best price.
2.1.2 Employees
Employing the right person to the right job and keeping these employees motivate
d is very essential in strategic plan of an organization. Keeping the employees
motivated can be by training and developing their skills, also Adidas can adopt
the motivation theories such as the Hertzberg’s motivation and hygiene factors. Mo
tivating employees plays a major role. To gain the maximum out of the employees,
they should be happy with their job.

2.1.3 Suppliers
Closer relationship with the suppliers of Adidas is a way of ensuring competitiv
e and quality products for the organization. An increase in the raw material pri
ce of Adidas will have an effect on their marketing mix strategies. Therefore cl
oser relationship with the supplier is vital.
2.1.4 Media
Positive or adverse media attention on an organizations product or a service can
have a great effect on the organization. This is an effective way of getting th
e consumers attention. Therefore Adidas will have to use the media before the la
unch of their new products. Thereby the consumers are aware of the new product a
nd the features.
2.1.5 Competitors
An organization should study their main rivals before the commercialization of a
product. In marketing all organization should play the game of differentiation.
What benefits can an organization offer which is better than their competitors.
They should sustain the differentiation over a period of time from their compet
itors, in order to maintain a good market share. Therefore Adidas should create
new products which will be different from their major competitor Nike.
This diagram below depicts the micro environment factors.

2.2 Macro environmental factors

These are the external factors which effects an organization, but which are out
of their direct control. These factors will continuously change and the company
needs to be flexible to adopt this. Macro environmental factors includes,
Political factors
Economic factors
Sociocultural/social factors
Technological factors.
All these factors are simply known as the “PEST”.
2.2.1 Political factors
Government can intervene Adidas in many ways; the main ways of government interv
ening are by imposing tax, offering subsidies, quotas etc.
These are some of the ways which a government would intervene an organization. W
hen considering about Adidas, Adidas is a multi national company, therefore they
will be charged with taxes like income tax and Value Added Tax (VAT) on their i
mported goods etc.
2.2.2 Economic factors
These factors are such as employment, income, inflation, interest rates, product
ivity, wealth etc.
These factors effect the organization for example if the consumers income is red
uced due to inflation, this will gradually decrease the purchasing power of the
consumers, therefore this will affect the sales.
Whereas the interest rates are not stable in most of the countries, the unstable
interest rate will make it hard to plan ahead in terms of budget. Also if the i
nterest rates are too high

and keep rising, then the demand for the products will fall because people save
more and it will be too expensive to borrow.
2.2.3 Social factors
These are some other factors which affect the sales of an organization.
When considering Sri Lanka (SL), SL has people from different social backgrounds
, before launching a product the organization should be aware of the social fact
ors too.
Adidas Porsche S2 shoe is a casual wear shoe; therefore this will not be affecte
d by some of the factors like religion. Whereas this shoe is a men’s apparel and a
lso will be used by the upper class socioeconomic status people. Here again it a
ffects the others. Most of the factors should be considered in order for success
ful launch.
2.2.4 Technological factor
This means how many major new technologies have being discovered. Therefore Adid
as need to be tuned in to the new technologies which can increase the productivi
ty of the company and saves energy or to cut down labour required.
If this factor is not taken into consideration, competitors will make use of the
new technologies and be more efficient and productive.
In present most consumers use the internet to do their shopping, therefore the A
didas website should keep up to date.
PEST is one of the most important factors that should be considered to run the b
usiness successfully.

We should also consider about the Porter’s five forces

2.3 Porter’s five forces
2.3.1 Barriers to Entry - Low
Adidas are able to control their costs effectively, giving them an advantage ove
r emerging competitors in the industry. Their web sites are well- prepared and u
pdated promotions attract online shoppers. Adidas brand is well-known globally a
nd plays a major role in consumer decision making. Selling footwear online is hi
ghly competitive; however, barriers to enter into this e-commerce industry are q
uite low. Therefore, the online footwear industry is broad with hundreds of onli
ne retailers. Switching cost is low for the consumer, and may occur frequently d
epending on consumer preference and other factors affecting consumer buying deci
sion.
2.3.2 Bargaining Power of Buyers - High
There are a large number of buyers relative to the number of firms in this indus
try. Therefore, companies like Adidas must continuously market their product and
differentiate their brands against competitors, in order to increase sales and
market share. The use of online tools has helped to enhance the accessibility am
ong users. Brand identity plays a critical role in the buying behavior; strong i
dentity will offer consumers trust and loyalty.
2.3.3 Bargaining Power of Suppliers - Low
There are many suppliers in this industry. There is very little differentiation
among the suppliers which makes suppliers bargaining power non-existent. Leathe
r, rubber, and cotton are commodity items and are available abundantly in the ma
rket place. Adidas have advantages and power over their suppliers. These supplie
rs become dependent to the
firms as their means to survival. Adidas have standardized their input procedure
s pertaining to the materials used, their labor force, supplies, services. Firms
are able to switch between suppliers quickly and cheaply, due to the globalize
networks of cheap labor on various continents.
2.3.4 Threats of Substitutes - Low
Consumer substitutes for athletic footwear products are low because there are li
ttle alternatives to switch, some substitutes for athlete footwear could be boot
s, sandals, dress shoes or bear feet. Consumers are not likely to substitute due
to the performance specification of the product. For instance, a basketball pla
yer would not wear boots to play basketball. Therefore, there are no real substi
tutes for athletic footwear.
2.3.5 Rivalry among Existing Competitors - High
The rivalry among existing competitors in the footwear industry is quite high. L
arge firms such as Nike and Adidas have grown immensely over the last two decade
s. Their global reach has expanded through all continents; this is evident using
the Internet and e-commerce. Online selling has enlarged the reach for these fi
rms allowing them to increase sales while minimizing operating costs. Almost eve
ry large firm has a web site, and most of these web sites contain virtual stores
which provide convenience to consumers. Most individuals in North America have
access to high speed Internet and online purchasing has become the new trend for
the twenty first century.

Following will be the SWOT analysis for Adidas:

2.4 SWOT analysis
2.4.1 STRENGTHS
Established brand name - this means that Adidas has already built up a good repu
tation and it has a large market share within its industry.
Good retail links - Adidas has established good links with shops and outlets, wh
ich sell Adidas’s products.
Integration with Porsche - Two companies of high reputation integrates, there is
more recognition.
Good reputations for quality – Adidas and Porsche have built up a good reputation
over the years for the quality of their goods.
2.4.2 WEAKNESSES
A large amount of finance is required for research and development of the produc
ts, therefore their prices are high – this means that Adidas require a large amoun
t of funds so that they can carry on producing top of the range products.
Adidas Porsche design S2 will not be affordable for everyone; they have segment
ed according to the demographic geographic segmentation, which is the income, so
cioeconomic status and according to cities and etc.
2.4.3 OPPORTUNITIES
New products – One option, which Adidas could take, is producing new products.
Make deals with sports stars – Adidas could try to persuade more sports stars to
wear their products by offering them deals, including David Beckham, Zinedine Zi
dane, and Stephen Gerrard etc.
Expand distribution network – Adidas could also export their products to new coun
tries where their goods weren’t previously sold.
2.4.4 THREATS
Competition – Adidas’s competition includes Nike, Reebok, Puma, Umbro, Diadora and
otto etc.
Inflation of materials would cause prices to rise, therefore fewer customers wo
uld buy Adidas’s products – this means that if the prices of materials used were to
rise then this would cause the prices of Adidas’s goods to rise, as the products w
ould be more expensive to make. This would mean that not as many people would bu
y their goods at higher prices.
Following the PEST, Porter’s five forces and SWOT, the marketing objectives will b
e briefly explained.

3. Marketing Objectives
Marketing objectives are in two broad levels, they are:
Corporate level
Functional level

3.1 Corporate level

In this level Adidas will have to consider the business as a whole, this include
s deciding in which market they will have to compete and in which geographic reg
ions to operate, for example Adidas Porsche S2 will be first operated within the
Western province in Srilanka. Mainly multinational firms like Adidas involves r
esource allocation process such as cash, staffing, equipments, and other resourc
es are established at the corporate level.
3.2 Functional level
This is the level where Adidas should concern with coordinating the functional a
reas such as the marketing, finance, human resource, production, etc. Therefore
each functional area of Adidas should contribute to the organization. Functional
strategies are mainly concerned with appropriate timing, for example Adidas Por
sche S2 shoe will be advertised sixty days before the product launched, and this
is done to get the consumers attention towards their new product and aiming to
increase their customers.
Both the corporate and functional level needs to adhere to the SMART criteria. W
hereas “SMART” is the acronym form for
Specific - This is that Adidas should be precise in what they are going to achie
ve.
Measurable – This is to determine Adidas objectives.
Achievable – What Adidas is attempting to achieve.
Realistic – Has Adidas got resources to achieve their objectives?
Timed – When will Adidas achieve their objectives?

4. Marketing Objectives of Adidas Porsche S2

Adidas Porsche S2 is a new product which has been launched recently to the Europ
ean countries and will be launched to Srilanka in the mid of December 2009. Foll
owing will be some of the objectives of Adidas.
Adidas Porsche S2 will be launched to the Srilankan market by the mid of Decembe
r 2009.
Build brand image – Adidas already has a very good brand image, they need it to ex
pand it even more by integrating with Porsche. Whereas even Porsche racers will
be interested in buying the Adidas Porsche shoes which will be targeted for the
car racers.
Adidas Porsche S2 women’s apparels will be launched by the beginning of 2011.
To increase the profit margins at least by 10% of Adidas shoes ( excluding the b
oots, slippers and sandals)
To sell around 100 pairs of Adidas Porsche S2 shoes in 1 year within the Colombo
outlets.
These will be some of the marketing objectives set for the Adidas Porsche S2 and
following will be the STP strategies of Adidas Porsche S2.
Again STP is an acronym for:
Segmentation
Targeting
Positioning

5. Segmentation
The world is made of billions of people with their own set of need, wants and be
havior. Segmentation is aiming to match groups of people with the same set of pu
rchasing needs and their behaviors.

The Pie chart depicts an example of segmentation

When segmenting there are four main variables which should be considered by Adid
as they are as follows:
Geographic Variable
Demographic Variable
Psychographic variable
 Behavioral Variable
Adidas will be using some of these variables fairly; they will not be segmenting
a product by considering all the groups based on the variables.
To start with the geographic variables, Adidas will mainly launch a product cons
idering to the geographic variables.

Demographic variables will be used fairly, some of the groups based on this vari
able will be considered.
Psychographic variable will also be used fairly. And finally the behavioral vari
able will be also used fairly.
Whereas behavioral variable will also considered by Adidas fairly. Hence, you ca
n now have a look, how these variables can be used.
5.1 Geographic Variables
Adidas mostly consider about the geographic variable, Adidas Porsche S2 will be
first launched only within Colombo Srilanka. Whereas this shoe has being already
launched in the other Asian countries like China, Malaysia. UAE and etc, which
has been a success to Adidas. This shoe is mainly targeted to metropolitan citie
s and the area of density is urban and semi-urban. Climate has no impacts on thi
s shoe, which means this shoe could be used in any climate mainly because of the
leather mix.
5.2 Demographic Variables
Demographic variables which are mainly concerned by Adidas are age, gender, inco
me, and socioeconomic status. Adidas consider age because this shoe will be avai
lable only for the youth, young adults and old, due to the shoe sizes available.
And as mentioned before this shoe is only available for the males who have an i
ncome starting with 50000-100000, where the socioeconomic status would be upper
class and middle class. These will be some of the groups based on demographic va
riable and groups like religion, language etc. will have no impact on this produ
ct.

5.3 Psychographic Variable

Psychographic variables consider various impacts on people’s buying behavior, a co
nsumer opinion such as the interests or hobbies will have a huge impact on the p
roduct they will to buy. Adidas Porsche S2 is an authoritarian and an ambitious
product, this shoe will be bought by the consumers who know the value of Adidas
and Porsche, this
shoe is said to be as a substitute of a high performance sports car, consumers w
ill be fully appreciated by the low-profile comfort and distinct design that mak
e the Porsche design S2 men’s inspired shoe of high performance and luxury footwea
r.
When considering life styles, Adidas Porsche S2 shoe is mainly an out-door orien
ted shoe and also could used for sports, it is recommended for casual wear.
5.4 Behavioral Variables
Adidas takes moderate consideration of the behavioral factors; Adidas Porsche S2
 will be launched in Colombo Srilanka. Consumers have a clear knowledge on the b
rand Adidas; therefore behavioral variables like benefit sought will definitely
include quality in their product, the Porsche S2 will be a regular wear shoe. Mo
stly Adidas shoes are bought by the ex-users, regular users and potential users.
Considering the readiness stage, Adidas has an aware readiness stage, mostly co
nsumers who are well educated about the brand will decide to go for an expensive
pair of shoe.
Variables of segmentations were taken into consideration before the launch of th
e Adidas Porsche S2. Once the firm has successfully segmented its product, the n
ext step is to target the product.

6. Targeting
Adidas has decided to target the Adidas Porsche S2 only to a segment of Srilanka
, which is the Adidas Porsche S2, will be first launched only in Colombo, this i
s done in order to study how well their competitors like Nike and Puma have serv
ed the market, Nike and Puma has good reputation too within Srilanka, Therefore
Adidas will first target only a segment (Colombo). Adidas already have an establ
ished reputation within Colombo, because they already have some outlets and reta
ilers only within Colombo.
Adidas Porsche S2 will be mainly targeted on teens, youth and young adults. As m
entioned before this shoe is an out-door oriented shoe and will be mostly bought
by teens and youths.
Once the product is being targeted, the next step is to position the product tha
t is how the consumers will see Adidas.
7. Positioning
Adidas Porsche S2 adheres to some of the positioning strategies in positioning t
heir products. This includes:
Product attributes – this is where Adidas uses its products attributes or features
as the basis for positioning their products. For example Adidas Porsche S2 focu
ses on the new leather mix which provides damage resistant structure and also th
e long lasting sole. This is a key benefit which the consumers will gain.
Price and quality – two key factors used by the consumers in order to evaluate a p
roduct is the quality and the price. Adidas uses high price (premium pricing) to
indicate that their product is superior quality.

Use or application – Adidas Porsche S2 has positioned as the right shoe for out-do
or oriented lifestyle.
User – This that Adidas produces their products targeting on special users, Wherea
s Adidas Porsche S2 has being designed for the teens and youth and the young adu
lts.
Following will be the perceptual map for Adidas Porsche S2
The perceptual map would have given you a clear idea of Adidas Porsche S2 and it
s competitors. Adidas Porsche S2 has been placed at the top of high quality and
also the cost. This is because Adidas products are set by the premium pricing st
rategy. Premium pricing strategy is adopted by Adidas because there is uniquenes
s in their product.
Once the positioning is done successfully next stage is to analyze their competi
tors. Before the launch of Adidas Porsche S2, Adidas benchmark its major competi
tors. This includes Nike and Puma.
8. How buyer behavior affects marketing activities?
Consumer buyer behavior is a main element which an organization should take into
consideration. Consumer buyer behavior is influenced by three major factors:
Social factors
Psychological factors
Personal factors
8.1 Social factors
These social factors can include culture, roles and family, social class and ref
erence groups. By taking reference group into consideration, this can influence
the consumer buying behavior, whereas reference group is referred to a group whe
re an individual identifies themselves, reference group can be a family, school
or college, work place etc. This can influence the buyer by when a person is int
roduced to a new group, for example a college, he/she will be meeting new people
and their behavior pattern will be different from the person’s previous college,
the style of clothing. When he/she is adapted to his new college, this will infl
uence and change his/her buying behavior.
8.2 Psychological factors
These factors are the thoughts of an individual which influence his/her purchasi
ng behavior. These factors include motives of an individual, perceptions, attitu
des and personalities. Adidas has built up strong reputation among its consumer
and most of its consumers have attitudes towards its brand. Consumers have the b
eliefs that the products offered by Adidas are durable. Therefore this will infl
uence the consumers to buy Adidas products due to the attitudes towards the bran
d.
Psychological factors play a major role in a brand; if the consumers have an adv
erse feeling on Adidas they will not buy the products again.
8.3 Personal factors
These are the factors that bring uniqueness to a person and influences purchase
behavior. These factors include demographic factors, lifestyle etc. this is aga
in a major factor to Adidas, and most upper class people express themselves on t
he basis of their interests, activities and their styles. An upper class child l
ifestyle will be completely different from a low class child; this is influenced
by the demographic factors and personality of both the child. Adidas Porsche S2
will be mainly targeted on upper class people. Therefore the buying behaviors o
f people differ from one another.
After identifying how the buyer behavior affects marketing activities, Adidas wi
ll also have to consider about the marketing mix, which is the 4p’s. Following wil
l be the marketing mix of Adidas.
9. Marketing Mix (4p’s)
The marketing mix includes:
Product
Price
Place
Promotion
All these four elements of the marketing mix will be discussed clearly, to start
with;

9.1 Product
The product which will be launched in the mid of December will be the Adidas Por
sche S2, which is a casual wear shoe. Adidas products core benefit is to satisfy
their customers’ needs and wants, Adidas Porsche S2 is an improved and upgraded p
roduct
When considering to its previous shoe, the innovative features and the quality o
f Adidas Porsche S2 is to satisfy its customers.
9.1 Adidas Porsche S2 details
• Full grain leather and synthetic upper is both durable and stylish
• Standout Porsche design logo for a unique touch
• Long-lasting rubber sole provides damage-resistant structure
• Contemporary tooling and modern profile design provides a high quality Porsche
distinction.
• Full lace-up construction for secure personalized fit
• Versatile tread pattern for steady traction on most surfaces.

9.2 Branding and Packaging

Branding and packaging has always been to protect and contain a product. Brandin
g and packaging has been important for the consumers to recognize a product by i
ts size, brand name, logo etc.
Adidas also position themselves as a brand for success and they have used some o
f the famous athletes, showing wearing Adidas products. Adidas formed relationsh
ip with some of the world’s famous players such as the FIFA world player Zinedine
Zidane, David Beckam, Raul, Michael Ballack, Kaka etc. Adidas used some of the f
amous players and found it effective to promote their brand. This approach has b
een a success in the European countries.

9.2.1 Package design

Adidas Porsche design will be in a normal size shoe box, the box will be in pure
black and blue and the three stripes which indicate that it’s a product of Adidas
will be going through the centre of the box. This will help the consumers to re
cognize a product instantly. Where as the Adidas logo will be also put in the co
rner of the box.

Adidas Porsche S2 package

9.2.2 Brand and Name logo
Adidas is one of the leading manufactures of shoes and they understand the impor
tance of their brand name. Adidas is a household name which the consumers associ
ate with quality; consumers are more likely to purchase products of Adidas rathe
r purchasing an untried or unknown brand. Therefore the brand name or the Adidas
striking logo is prominent on their package.
9.2.3 Product differentiation or Unique Selling Point (USP)
Product differentiation is mainly done to a product to give the product a distin
ctive image which will differentiate the product from its competitors. The packa
ging should be extra ordinary and should give a good impression on the shoe in t
he first sight of the consumer.
Even if the product was not very good, the packaging alone could give that it wa
s very good.
Following will be the Boston Consulting Group (BCG) of Adidas.
9.3 BCG of Adidas

Adidas is categorized as a cash cow because the products of Adidas are said to h
ave high profits, and they have a low investment, because they are one of the ma
rket leaders. It is said that surplus of cash from cash cow will be injected to
the stars and question marks in order to create future cash cows.
Adidas makes a high profit out of its products because they cut costs such as ad
vertising, they don’t do heavy advertisement due to the brand image and the reputa
tion among its consumers.

10. Pricing
Adidas has categorized pricing into two major factors which consists of
Internal factors
External factors
Internal factors are the factors which affects Adidas within the organization, t
he marketers of Adidas needs to have control on these internal factors. Adidas P
orsche S2’s selling price will be set after all the internal factors of pricing ar
e managed. Internal factors of Adidas Porsche S2 will be as follows;
• Cost of the Adidas Porsche S2 (Fixed costs and variable cost).
• Marketing strategy (The final price which is going to be set)
• Company and Marketing objectives (Return on investment, Cash flow, Market share
and maximize profits)
External factors will be the indirect factor which affects Adidas; these factors
are not within the organization, the price analysis will be complicated for Adi
das when considering these external factors. External factors consist of;
• Customer and channel partner expectation.
• Competitive and related products (Primary product pricing, direct competitor pri
cing, etc.)
• Government regulation.
Adidas marketers have set a premium pricing strategy for Adidas Porsche S2. Adid
as have been adopting the premium pricing strategy to all its products. Adidas P
orsche S2 is being priced at $100 (LKR 11446). This pricing strategy is adopted
by Adidas in order evoke the perceptions of the quality and the prestige with th
e product.

11. Distribution/place
Adidas products doesn’t have long distribution channel. They sell their products o
nly in their own outlets and their only retailer is Hameedias in Srilanka, where
as the distribution channel will be as follows;
1.

2.
Example of customer marketing channels

You may have a clear idea how the distribution channel works. The first way of d
istribution will be direct marketing channel and the second will be an indirect –m
arketing channel. This is because there is one intermediary involved.
When considering to the distribution channel Adidas doesn’t have a long distributi
on channel, therefore they have fewer channel conflicts relating to distribution
channels.
12. Promotions
This is the latter stage of the marketing mix. When considering to Adidas, Adida
s have separate advertising strategies in different areas of the world. Promotio
nal strategies also include some of the main factors to be considered. Before pr
omoting Adidas should be very clear for whom they are targeting, the nature of t
he product, the stage of Adidas in the product life cycle and the finance.
Adidas Porsche S2 will be targeted on teens, youth and young adults as told befo
re under targeting. Nature of the product will be low involvement product; this
is because Adidas already has good reputation and awareness among the consumers,
therefore the product will promoted for short time duration. When considering t
he stage of the product, it will be an introductory product to the Srilankan mar
ket and the finance required for the promotions will be within a small budget. A
didas does not have any heavy advertising campaigns.
The core advertising factors of Adidas will be as follows;
• Commercial advertising media – this includes wall paintings, bill boards, street f
urniture components, bus stop benches, sides of buses, musical stage show etc.
• Television commercials – Adidas considers this as the most effective mass-market a
dvertising. Adidas has a large amount of TV commercial advertisements in the wor
ldwide TV network like BBC, CNN etc.
• Infomercials – Infomercials can be in two types that are the long form and short f
orm. Long form time length will be to 20-30 minutes and the short form will be 3
0 seconds to 2 minutes. The main objective of Adidas in infomercials is to creat
e instant purchase, so that the consumers sees the infomercials and immediately
buys the product through the telephone number or websites. Infomercials mainly d
emonstrate the products and their features.
• Celebrities – Adidas promotes their products by the help of the famous celebrities
in order to gain recognition and to promote specific products, Adidas uses the

famous football player David Beckam as their brand ambassador and many more cele
brities in every country to promote their products.

13. Expansion

Adidas is planning for expanding its Adidas Porsche S2 for the females too. Wher
eas Adidas Porsche S2 which is going to be launched by the mid of December will
be a men’s apparel.
Adidas Porsche S2 for the females is not launched to any market, as for the plan
Adidas will be launching the Adidas Porsche S2 by the mid of 2011.
The main reason for this expansion is to increase their total sales annually and
also to increase profit growth. In the year 2009 total sales for Adidas was 15.
3 billion euro’s and their profit growth was 11%.
Adidas recognizes that their consumers make purchase decisions based not only th
e brand but also the availability, convenience and breadth of product offering.
Adidas Porsche S2 will have a slight different segmentation strategy for their f
orthcoming product.
13.1 Segmentation
Segmentation strategies for the female Adidas Porsche S2 will be similar as the
males Adidas Porsche S2. Female Adidas Porsche S2 will be available launched in
all the countries where the male Adidas Porsche S2 will be available and the dem
ographic variables such as the age, income, socioeconomic status will be the sam
e as to the males Adidas Porsche S2. Also the psychographic and the behavioral v
ariables will be also the same.
After segmenting the product Adidas should consider the marketing mix of the new
female Adidas Porsche S2 which will be launched in the mid of 2011.
14. Marketing Mix
Marketing mix includes the 4p’s, which was clearly explained under the marketing m
ix of the males Adidas Porsche S2. The 4p’s includes firstly the;
14.1 Product
When considering to the female Adidas Porsche S2, Adidas has come out with a cre
ative idea. That is this female Adidas Porsche S2 will be having some added feat
ures comparing to the males Adidas Porsche S2.
Female Adidas Porsche S2 will be in two types that are the normal casual wear fe
male Adidas Porsche S2 and the other will be the Adidas Porsche S2 Sports is an
unisex sports shoe.
Adidas Porsche S2 sports shoe are perfect for high school athletes who compete i
n many multiple events.
This will be a sponsor for the participants of the forthcoming event, which is t
he Olympics 2012.
Some of the main features of Adidas Porsche S2 sports will be as follows;
• Adidas Porsche S2 is lightweight, well cushioned track spike.
• Nylon mesh upper combines lightweight and breathability (allowing the passage of
air and moisture).
• Synthetic leather trims improves durability.
• Pre-molded sole provides optimized comfort and cushioning.
• Replaceable spikes.
14.2 Price
Price strategy will be premium pricing for the Adidas Porsche S2 female. Whereas
Adidas Porsche S2 will be a sponsored for some the well known participants of t
he

Olympics’ 2012 for example Usain Bolt, and these shoes will be available only in t
he European market.
Adidas Porsche S2 female will be available in all the markets where Adidas Porsc
he S2 men are available.
14.3 Place
Again the distribution channel would be the same as the Adidas Porsche S2 men’s sh
oes. That is the Adidas outlets and their retailers.
14.4 Promotion
As mentioned before that Adidas has come with a creative idea. Adidas main promo
tional strategy for Adidas Porsche S2 men and female is the Adidas Porsche S2 sp
orts; this is because the main idea behind sponsoring the Olympics 2012 by their
new Adidas Porsche S2 sports is to keep its Adidas Porsche S2 in the public foc
us. This technique of sponsoring main events like the Olympics has been a great
success to Adidas.
In the year 2008 Adidas has sponsored sportsmen and women, 295 footballers, 64 r
ugby players, 71 tennis players, 24 basket ball players, 8 golfers.
By this most consumers by their product for the name and the prestige they get b
y wearing it. For example some consumers might by the Adidas Porsche S2 because
it was the brand that the world’s fastest runner Usain Bolt wore.
Other promotional strategies which will be used for the Adidas Porsche S2 female
will be as the same as the Adidas Porsche S2 men.

15. Conclusion
This report on marketing a particular product, that is the new product which wil
l be launched to the Srilankan market in the mid if December. This report on lau
nching a new product to the market would have been very clear, and what are the
steps an organization should follow in marketing a product for a throughout succ
ess.
In order to refresh your mind with some of the main factors in marketing a produ
ct is the analysis of the marketing environment with the three models that are t
he SWOT, PEST and the porters’ five forces. These are the tools to analyze an orga
nization. Following this the marketers should also consider about the marketing
objectives of the product.
By identifying the marketing objectives the marketers should segment, target and
position the product (STP strategies) and finally the marketers will have to co
mmit in the 4p’s, that is the features about the product, what are the pricing str
ategy used on the product, where and how to distribute the product and finally w
hat the promotional strategies used.
You may have a clear idea on how marketing a product and what are the affects yo
u may face when marketing. Therefore the knowledge of marketing is vey essential
to any marketer in order to succeed.
So finally to sum up this report I would like to give one the famous quote on ma
rketing by the father of marketing Phillip Kotler. He says;
Authentic marketing is not the art of selling what you make but knowing what to
make. It is the art of identifying and understanding customer needs and creating
solutions that deliver satisfaction to the customers, profits to the producers
and benefits for the stakeholders.