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1. Evaluate a marketing plan for an operation with reference to contemporary theories, concepts and tools.

2. Compare and contrast the effectiveness of contemporary marketing theories, concepts and tools as applied to current marketing scenarios


3. Evaluate a pragmatic investigation/research methods associated with strategy, strategic management, and/or strategic marketing

Introduction to Adidas and its Business Operations

Marketing plan of an organization is one of the major documents, which includes all the processes and activities, which are needed to bring its products and services to the market. Primarily, it is used for promotion and advertising of the products to its potential customers. This report includes the marketing plan for a well-established organization, i.e. Adidas, New Zealand. Adidas is the German multinational organization that offers a wide range of products to its customers. Under this marketing plan, there is discussion about the marketing goals and objectives of Adidas. It includes the market research, target market and leading competitors of the organization. When an organization brings its new products to the market and people, then it needs to conduct market research for analyzing needs of customers and current trends in the market. Furthermore, the report uses 7 Ps tool of marketing that includes different marketing strategies in context of Adidas. At the end, it includes the predictive levels of sales and profits, which the company wants to attain in New Zealand by implementing different marketing strategies and tactics.

Adidas is a Multinational Corporation of Germany that is headquartered in Herzogenaurach, Bavaria. It was founded in the year 1949 by Adolf Dassler. The organization operates its business by offering a wide range of products, like; it manufactures and designs clothing, shoes and different accessories. Adidas is a well-established organization and it is named as the largest sportswear manufacturer in Europe. This is a holding firm of Adidas Group, which includes various firms, such as; TaylorMade-Adidas Golf Company, Reebok Sportswear Company etc. As of 2016, the total revenue of the company was €19.29 billion. Currently, the company is employing over 53,731 employees in more than 160 countries and produces more than 660 million products each year and produces the sales of € 14.5 billion. By looking at the figures, it can be suggested that the company has complex structure, but it keeps the things very simple, fast and lean (Adidas Groups, 2017). It is the major reason that company is known as second largest sportswear manufacturer in the world. The company has expanded its business in various countries and now, it is planning to bring its operations to New Zealand.

In the formulation of business plan, first step is to develop its objectives and goals for marketing process. Under this step, the company will decide that what it wants to attain by introducing its brand in New Zealand (Ait-Alla, et al, 2014). The marketing objectives of Adidas are divided in four criteria, which are stated below;

Marketing Objectives of Adidas in New Zealand

Under this objective, the firm intends to significantly accelerate its sales and growth in earnings till 2020 as a major part of this marketing plan. Adidas is expecting the sales to increase at the rate between 10% and 15% per year in the period of 2017 to 2020.

Under this objective, the company is looking for to increase its profits and revenues to increase from 10 to 12% on average during the period of 2017 to 2020. It will target that net income should grow approximately 20 to 22% in this duration (Alexander & Ella, 2013).

The company will set the prices with the objective of retaining the existing customers and creating new customers. For existing products, it will use competitive prices and skimming prices for the new lunched products. It will assist the organization in attaining pricing related objective.

By offering innovative and new products in New Zealand, the company wants to make its unique brand image and to become one of the most talked sports brand in New Zealand. By these products, the company aims to attract more and more customers and engage them to drive brand preference in the country (Barney, 2014).

Market Research is the process that is conducted by an organization for collecting the information about market and market trends. It assists an organization in understanding the needs and preferences of customers in a particular country (Cody & Jackson, 2016). In this report, Adidas is expanding its business in New Zealand, so it needs to make research in New Zealand apparel and accessories industry. In this country, the clothing industry has performed very well over past few years, despite threatening retail circumstances. The sector is forecasted to grow by a yearly rate of 1.1% over past years throughout the period of 2017-18 to total of $2.57 billion. There is a strong demand of sportswear and foot wear.

The industry in New Zealand owed much to enduring regaining of economy, enhancement in the employment rates and increase in the number of migrants, in some cities, like; Wellington and Auckland. Another reason behind the increase in the revenues of this industry is increasing household incomes, which also enhanced the confidence among businesses and customers. In the industry, the number of international players is increasing in New Zealand industry (Cole, 2013). Due to this, local players are confronting competitive pressure and low margin atmosphere in the year 2016. In the year 2017, it is estimated that sales of retail industry will increase by 2.7%. The figures from previous years show that sales volume trend for footwear, clothing and accessories has increased in these years, following duration of decline in between 2012 and 2013. People are very concerned about fashion and they are becoming more health concerned. It has increased the sales of sportswear and shoes, which are used by the people for their exercise and gym. Adidas will enter in this market by after considering these facts and figures that sportswear and apparel industry in New Zealand will be proven profitable in the future (Dawes, 2009).

Market Research of the Apparel and Accessories Industry in New Zealand

When an organization plans to expand its business operations in other country, it has to understand the needs and preferences of people and develop a target market on the basis of similar taste and preferences. It will assist the organization in understanding the expectations of customers. Apart from this, the above-mentioned market research will help Adidas in knowing about its leading competitors in New Zealand industry. It is very important to analyze the competitors and their market tactics to gain competitive advantage against them (Eden & Ackermann, 2013).

Target market is a specific group of customers at which the products and services of company are aimed. Finding a target market is the process by which a company could determine its market segments for increasing the demand of products in this target market (Varadarajan, 2010). It includes the set of people for whom company will make its marketing and advertising efforts. There are different characteristics, which can separate the market in different segments, like; purchasing power of people, geography, demography and psychographics. In New Zealand, Adidas will target the market, which includes the people, who are more interested in purchasing sportswear. Adidas is the biggest sportswear brand in Europe and it has segmented the market on the basis of psychographic, demographic and behavioral characteristics. In this country, Adidas’ target market will be the urban adults and youth with a creative value proposition of the brand in competition of people’s lifestyle (Hill, Jones & Schilling, 2014). Its major objective is to emphasize on usage to the urban areas and cities to approach the potential target market. In New Zealand, the primary target market of Adidas will be young adults and children, who are interested and passionate about the sports and fitness.

Under this criterion, the company will segment the market on the basis of age, income, religion, family size, social class etc. Although, it currently aims at the people with the age group of 13 to 15 years but most of its customers are from the age group of 16 to 30 years, who are from the higher and middle class families.

This segment divides the customers on the basis of their knowledge, attitude, their feedback and utilization of product. Under this segment, Adidas will primarily target the sports persons and the people and non-athletes, who are motivated by or actually love sports (Keller, 2010). The company has a long history of supplying athletic apparel and footwear at all levels of sports.

Target Market of Adidas in New Zealand

Under this market segmentation, the customers are divided as per their lifestyle, values and personality.  In New Zealand, Adidas will target the market, which include well-experienced people, achievers, goals achievers and hard workers.

In the New Zealand apparel and footwear industry, the company may face intense competition from domestic and international players. There are so many competitors in the industry, which have already established their business and operations in the New Zealand sportswear industry. The companies are using effective marketing strategies and tactics to deal with the competitive pressure in the industry (Kunz, Karpova, & Garner, 2016). In this country, it can be seen that domestic players are dominated by the international players and they are facing more competitive pressure from them. However, Adidas is offering its products with unique and exclusive features, so it will be profitable for this to expand the business in New Zealand. The profile of its major competitors in New Zealand apparel and footwear industry is stated below;

Basis

Nike.com (NZ)

Hennes & Mauritz

Canterbury New Zealand

Products and Services

Nike is an American based organization that has its operations in New Zealand and engaged in manufacturing and designing the apparels, sportswear and footwear in global market (Cwinkler. 2013).

The primary products and services of the company are to offer athletic apparels and footwear, i.e. sports shoes.

Hennes & Mauritz is a multinational corporation that is known for its fashion clothing for women, men, teenagers and children in New Zealand. Primarily, it offers fast fashion clothing and accessories for the people in the country.

Canterbury New Zealand is the sportswear provider company that primarily emphasizes on rugby football. This organization was originated from Canterbury area in the country. In addition to sports clothing, the company offers sports equipment also (Harry, 2012).

Pricing Tactics

The company is implementing vertical integration for setting the prices of products. It assists the organization in reducing the avoidable costs. Apart from this, it is using value based pricing tactics.

This company is making efforts to provide the quality products at best prices in comparison to any other player in the industry. Due to its pricing strategy, the company is known as one of the largest retailer in the world.

The pricing strategy of this organization is created by setting the higher prices of its products because it is supplying its products as a wholesale provider to the leading sports teams at Northumbria University.  These teams can afford the higher prices of its products.

Marketing Strategies

Nike NZ is using various communication channels for approaching the target people and it is using different marketing strategies to promote its products and services to customers. The marketing team at Nike in New Zealand has introduced creative message to attract the people.

This organization is using social media strategy as its marketing strategy, in which it is implementing many social media platforms for promoting and marketing its brands and products.

The company is sponsoring various sports events in the country, so that it can effectively market and promote its products. For example, it sponsors women’s and men’s rugby union clubs at Exeter University. The tagline of the company is “Committed to the games”.

Supply Chain

Supply chain of the Nike is the engine that drives its products all over the world. Under its supply chain process, the company has moved towards developing long term relationships with some of the factories as their trusted partners instead of having short term relationships with various factories.

Hennes & Mauritz is making huge investment in its supply chain processes to competing with other players in the sector. It is implementing innovative supply chain practices, which made it able to gain the benefits over other players in New Zealand apparel and footwear industry. The cloths manufactured at different facilities across the globe are transferred to a warehouse. In New Zealand, the company has its own distribution centre.  

Under its supply chain process, the company is operating it’s all the operations from its headquarters and it has established ware houses and distribution centres in different cities of New Zealand.

However Adidas is facing strong competition in New Zealand, but it can establish its business operations in the country by implementing effective strategies. The company may have various competitive advantages in the country (Kotlar & Armstrong, 2012). The company is offering quality products and its brand equity will offer it more competitive advantage over its competitors. Supply chain process and distribution network are two major components, which will assist the organization in gaining competitive advantage. In New Zealand, the company can sponsor sports events to promote its products.

Adidas is manufacturing variety of products under its brands. The major product of the company is foot wear and shoes. Available in different styles and designs, the shoes and footwear is athletic and strong (Su, & Tong, 2015). In addition, the company offers accessories and apparels, like; jackets, T-shirts, sweatshirts, shorts etc. These products are in demand all over the world. Thus, the company is very much strong in sportswear.

Due to its unique design, style and promotions, Adidas uses both skimming pricing policy and competitive pricing as well. To operate its existing products, the company will use competitive prices by looking at its competitors, like; Nike, Puma, H&M etc. But for the newly launched products and services, the company will use skimmed prices (Pearce and Robinson, 2011). The target customers of the company are the higher class people and luxury people, so it can offer the products at comparatively higher prices. The organization never implements price penetration strategy as that will impact its brand equity.

Leading Competitors in the New Zealand Apparel and Footwear Industry

In New Zealand, the company will sell its products by establishing its retail stores. Currently, it has its exclusive retail stores in which the stock is supplied directly from the organization. Apart from this, there may be some other multi-brand shops, which will have the footwear, shoes and cloths of Adidas on display. These shops receive the products from distributor (Singh, 2017). In addition, Adidas is offering its products online also. The offerings of the company will be available on online shopping websites, like; Amazon.com, Myntra.com, Snapdeal etc. By creating effective brand equity, operating margins will be high keeping its distribution channels inspired.

In order to bring its products and services to New Zealand, Adidas will use effective marketing communication and promotion strategies. The company will use several marketing vehicles, like; social media platforms, but most of the marketing process is focused on product placement and television. Its creative team is well-known to influence the customers through attractive ads, which are very well created, innovative and energetic (O'Sullivan, Abela & Hutchinson, 2009). These ads will help the company in attracting the potential customers towards its products by delivering them appropriate message. The company is using the tagline, i.e. “impossible is nothing”. This statement shows power of the brand. In addition, the company can sponsor the sports events in New Zealand and manufacturing the dresses for sports team. Developing creating advertising campaign will also assist the organization in promoting its products in the country.

Adidas has made a major focus on recruiting skilled and talented staff at their retail stores. It is very important that employees at stores are customer-friendly that can help the company in developing its customer base (Kelsey, 2015). The company is looking for the employees and sale persons, who possess effective communication skills, so that they can interact with the customers effectively. It will motivate the customers to purchase company’s products.

The company is using effective processes, which assist it in minimizing its costs. The supply chain process of the company includes different strategies that impact its product delivery positively. Distribution network of Adidas is very wide and effective. These processes will help the company in minimizing the costs and increasing the profits (Peteraf, Gamble, & Thompson, 2014).

Physical evidence of a company shows the delivery of its products and services to the customers, so that they can believe to its physical presence. When the customers think about the sportswear, then the name of Adidas will come in their mind (Keat & Sam, 2013). The company will make efforts to establish its physical evidence in the market by executing effective marketing strategies. It shows the branding of company in the prospective market.

After creating a marketing plan, it is very important to develop a financial forecasting for its sales and profits in the future (Rudolph, 2016). This will show the predictive levels of its sales and profits in next five years. By looking at the previous figures of Adidas, it can be analyzed that company is expecting to grow its sales by 15% in the timeframe of next three years. If the company will use its effective strategies, then it will be able to enhance its sales. It is expecting to grow at CAGR of 1.7% from the year 2011 to 2018. In addition, the profit objective of company indicates that it is making efforts to increase its profits and revenues by 12% in next few years (Hollensen, 2015). There are various factors, which will assist the company in getting increased sales, like; increasing demand for relaxed footwear and shoes, awareness about healthy lifestyles, higher income levels etc. If the company will not use these marketing strategy, then it will grow but with a slow rate. In the future, the company will be able to enhance its market share in New Zealand industry. The above-mentioned goals and objectives indicate the financial intention of the company, which it wants to attain in New Zealand. The below-given table shows predicted sales and incomes of the Adidas through business expansion in New Zealand. 

If Adidas will not follow the tactics and strategies, which are mentioned in its above marketing plan, then development and growth of company will be very slow. It will be not able to increase its customers, which will make its sales and profits stable (Gordon, 2012). The company needs to go ahead with different marketing strategies and tactics, so that it can gain more competitive advantage against its competitors in the industry. By executing these strategies, the company will be able to fulfill all the marketing and financial objectives in New Zealand.

Conclusion

From the above analysis, it can be concluded that Adidas is a well-established sports brand across the world. The company is offering the sportswear products, like; T-shirts, footwear, running shoes and other athlete products. The company has expanded its business operations in different nations, now it is planning to run its operations in New Zealand. This report has been created the marketing plan for company in order to attract the customers in NZ apparel and footwear industry.

The industry has so many leading players, who are running this business there. The company needs to develop various strategies to deal with these competitors. This marketing plan includes various aspects in relation to Adidas in New Zealand. The company is expanding the business by setting various marketing objectives, which will be fulfilled in next few years. It includes different marketing strategies under marketing mix tool, which can be used in attaining these objectives. At the end, there is the discussion about the predicted financial information about the company. The company needs to attain the figures by executing given strategies and marketing tactics. Thus, it can be said that it is very important to develop a marketing plan, when a company plans for business expansion in other countries.    

References

Adidas Groups. (2017). Strategic Overview. Retrieved from https://www.adidas-group.com/en/group/strategy-overview/.

Ait-Alla, A., Teucke, M., Lütjen, M., Beheshti-Kashi, S., & Karimi, H. R. (2014). Robust production planning in fashion apparel industry under demand uncertainty via conditional value at risk. Mathematical Problems in Engineering, 2014.

Alexander & Ella (2013). "H&M’s & Other Stories To Open London Store". British Vogue. 

Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson Higher Ed.

Cody, K., & Jackson, S. (2016). The contested terrain of alcohol sponsorship of sport in New Zealand. International Review for the Sociology of Sport, 51(4), 375-393.

Cole, G.A. (2013). Strategic Management, Cengage Learning.

Cwinkler. (2013). Nike vs. Adidas: Competitive Advantage, Retrieved from https://storify.com/cwinkler/nike-vs-adidas-competitive-advantage

Dawes, J. (2009). "Brand Loyalty in the UK Sportswear Market." International Journal of Market Research, Vol 51, No. 1.

Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage.

Gordon, R. (2012) Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), 122-126.

Harry, W. (2012). "Nike loses England rugby shirt deal to Canterbury". Telegraph. London.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Keat, R. A., & Sam, M. P. (2013). Regional implementation of New Zealand sport policy: New instrument, new challenges. International journal of sport policy and politics, 5(1), 39-54.

Keller, K. L.  (2010). Brand equity management in a multichannel, multimedia retail environment. Journal of Interactive Marketing, 24(2), 58-70.

Kelsey, J. (2015). The New Zealand experiment: A world model for structural adjustment?. Bridget Williams Books.

Kotlar, P. & Armstrong, G. (2012). Principles of Marketing (14 edition). Pearson Education, Inc.

Kunz, G. I., Karpova, E., & Garner, M. B. (2016). Going global: The textile and apparel industry. Fairchild Books.

O'Sullivan, D., Abela, A.V. & Hutchinson, M. (2009). Marketing performance measurement and firm performance: Evidence from the European high?technology sector", European Journal of Marketing, Vol. 43 Issue: 5/6, pp.843-862.

Pearce, JA., and Robinson, RB. (2011). Strategic management: Formulation, implementation, and control. 12th edn. McGraw Hill Higher Education.

Peteraf, M., Gamble, J., & Thompson Jr, A. (2014). Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education.

Rudolph, M. (2016). A Financial Analysis of the Sportswear Company Adidas AG.

Singh, P. (2017). Adidas targets rapid sales and profit growth until 2020. Retrieved from https://fashionunited.in/news/business/adidas-targets-rapid-sales-and-profit-growth-until-2020/2017030814931.

Su, J., & Tong, X. (2015). Brand personality and brand equity: evidence from the sportswear industry. Journal of Product & Brand Management, 24(2), 124-133.

Varadarajan, R. (2010). Strategic Marketing and Marketing Strategy: domain, definition, fundamental issues and fundamental premises, Journal of the Academy of Marketing Science, 38 (2), pp. 119-140.

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