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Question 1 ................................................................................................ 2

Question 2 ................................................................................................ 3

Question 3 ................................................................................................ 4

Question 4 ................................................................................................ 6

Question 5 ................................................................................................ 7

Question 6 ................................................................................................ 8

Question 7 ................................................................................................ 9

Question 8 .............................................................................................. 11

Question 9 .............................................................................................. 12

Question 10 ............................................................................................ 14

Reference list .......................................................................................... 15

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Question 1

SWOT analysis for the last five years for Adidas;

Strengths
 Adidas has a strong marketing strategy which consists of a perfectly
balanced amount of promotion, advertising, and digital technology.
 Adidas has a large market share existing in around 160 markets
worldwide.

Weaknesses
 Overdependence on sponsorship deals and brick and mortar stores.
 The use of traditional technology in the past was time consuming and
expensive.

Opportunities
 Rapid growth of emerging markets offers Adidas opportunities for
expansion.
 Collaboration with other entities and influencers to raise brand
awareness for a better market share.

Threats
 Increased competition because of globalization and technical
improvements.
 Easy entry into the market for competitors due to the emergence of
ecommerce.
 Uncertainty in the global economy. Unforeseen threats like the COVID
19 pandemic causes shifts in the global economy which negatively
impacts business for Adidas.

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Question 2

5S Objectives: Sell, Serve, Speak, Save and Savings

i. Sell: Sell objective encourages the growth of sales. Adidas achieved an

increase in sales of 93% due to a focus on direct sales online. The various
campaigns they ran improved their ecommerce business.

ii. Serve: Adidas started the #HomeTeam campaign to provide additional

benefits to clients during the COVID 19 outbreak. Hence, Adidas managed
to satisfy the serve objective by adding value to their customers.

iii. Speak: The objective seeks to get customers closer. Adidas formed the
Creators Club to establish a platform in which it would allow online
interactions with its customers.

iv. Save: In the past Adidas applied a traditional model, which was particularly
time consuming and expensive. The use of content automation platforms
enables them to save time and cut expenses through better management
of volumes of content.

v. Sizzle: It seeks to improve the brand presence on digital platforms. The

Adidas App offer experience tailored to users' preferences and behaviors,
and it was successful as it resulted in a four times sales growth in 2020.

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Question 3

The RACE digital marketing framework consist of four stages with

activities intended for engaging with customer which are.

Reach: involves building brand awareness externally in areas outside Adidas’

influence. Proposed marketing activities include:

 building awareness of its brand through using paid advertising on other

websites.
 appearing on guest blog posts for sportswear reviewers.

Act: this stage is all about encouraging interaction on Adidas’ digital platforms.
This can be enhanced in the following ways:

 having clearly labeled call to action buttons on the website.

 Asking for emailing details so that the customer can receive news about
future product promotions, new products and newsletters.

Convert: It involves getting audience to take that vital next step which turns

them into paying customers. Recommended marketing activities include:

 Providing a subscription service that offers discounts to new customers
and a certain volume of purchases.
 Offering after sales services such as the offering the customer the ability
to return a product bought online if does not fit or has a defect.

Engage: is all about using marketing activities to encourage repeat

purchases, empowering your customers to share their stories and success
with you. Adidas can achieve this by:
 Developing a long-term relationship with first-time buyers to build
customer loyalty as repeat purchases using communications on site,
social presence, email and direct interactions to boost customer lifetime
value.
 Customer review posts on their digital platforms.

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 Bonus points for every purchase for future discounts on future purchases.

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Question 4

The type of online presence for the website based on its functionality

Adidas Official South African website is a Transactional E-commerce website

because:
I. It enables the online purchase of products.
II. It provides information for customers who prefer to buy products offline.

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Question 5

Suitability of Adidas App

 The mobile App launched with Adidas is suitable for the current market
situation because it then resulted in a four times growth in 2020.

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Question 6

Market development strategies.

 New geographic markets: Adoption of the cloud technology to reach
global audiences.
 New customer segments: Paid advertising on television shows watched
by the target audience.

Market penetration strategies

 Market share growth: offering direct sales outreach efforts to prospects
of untapped market segments.
 Customer value improvement: Lowering prices and bundling product
offerings to increase value for the customer.

Product development strategies

 Changing payment models: use of subscription services.

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Question 7

Elements contributing to the brand equity for Adidas;

 Brand domain: Sports followers, professional and amateur athletes, and

people who regularly practice or engage in sports. Additionally, the brand
appeals to people who see health and sport as a way of life (Bala, 2018).

 Brand heritage: It is a brand with heritage going back over 70 years and
Adidas began strengthening its digital capabilities in 2015 when it
announced a five-year strategy called ‘Creating the New'. Furthermore, it is
rooted in sport, and it empowers creativity, collaboration and confidence.
(Walters. 2021)

 Brand values: Adidas introduced the Creators Club, a membership club

that rewards customers with special access to goods, activities, and
services in return for their assistance. Furthermore, the products are of
higher quality hence they are highly priced.

 Brand assets: Adidas corporate brand logo elements are the three stripes
and the with the wordmark adidas .

 Brand personality: The adidas brand's top 5 character qualities are

historic, modern, sporty, original, and simple. Effective brand
communication frequently builds on the good brand perception that
consumers already have.

 Brand reflection: By delivering new models of sportswear with new design

and innovation, such as (new mi Adidas products, ABSOLADO PS TF,
Adidas watches), the Adidas brand has already established an outstanding

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reputation in the minds of consumers. Adidas sportswear is the most

comfortable and fashionable in the world (Mandal, 2017).

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Question 8

Customer extension techniques to increase the depth or range of

products that a customer purchases from a company.

 Re-sell: Selling similar products to existing customers, which is important in

some business-to-business contexts as rebuys or modified rebuys.

 Cross-selling: Selling additional products that may or may not be related to

the original purchase.

 Up-selling is a subset of cross-selling that involves selling more expensive

products.

 Reactivation: Customers who have not purchased in a long time or who

have lapsed can be encouraged to do so again.

 Referrals are sales generated by existing customers' recommendations.

For instance, participant deals.

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Question 9

The impact that the Internet may have on Porter’s Five Forces and thenir

impact on Adidas as a company.

The impact that internet may have on the Porter's Five Forces.

 Bargaining power of buyers: Digital channels such as the internet

enables customers to evaluate products and compare prices. Adidas
sells premium products therefore the increase of bargaining power of
customers due to the internet may cause Adidas to relook at their pricing
models and offer more competitive prices.

 Bargaining power of suppliers: The internet has caused globalization

which has resulted in many suppliers having transnational contracts to
do jobs for organizations in different countries. This high demand can
cause them to increase their prices which impacts companies like Adidas
negatively as the cost of production increases.

 Rivalry between competitors: Internet made products that were intended

for a local market to appear online thereby making some products seem
identical. In addition, the barriers to entry have significantly reduced
because of the internet. This gives rise to more competitors which has a
huge effect on Adidas. More competition will result in better pricing and
more innovative products to maintain superiority over rivals.

 The threat of new entrances: the internet leads to mass entry of new
businesses. The cost of starting an online business and marketing is low.
This results in a number of new entries with competitive products at
different price points. This can lower Adidas sales as there is more
variety in the market.

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 The threat of the development of substitutes: Internet enables other

ways to meet needs and functions, creating new and unimaginable
substitutes. Fake products are on the rise and the internet has made
their distribution easier. Adidas has had make knock off products made
with its name. This can reduce Adidas’ market share as customers go
for the cheap more affordable knock of product.

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Question 10

Contiki Customer Relationship Management process;

Marketing Stage

At this stage Contiki should focus on identifying the target audience. In this case

18–35-year-old in school group and other special interest groups. Contiki can

do this by having targeted marketing campaigns such as emails, paid

advertisements and create a database of the target audience. This can then be

used to generate leads through analysis of the data (Wind, 2002).

Sales Stage

In the sales stage Contiki can focus on the remaining leads. These are the

individuals have shown interest in the product offering. It is necessary for

Contiki to interact with the customer at the stage via direct marketing, direct

sales pitch, offering special member programs for potential clients and so on.

The main goal is to turn leads into customers (Bala, 2018).

Product Stage

At this stage the focus is delivery of the product. In Contiki’s case, the product,

tours, must be packaged in such a way that the customer enjoys the experience

so that there can be repeat buyers and referrals as well. Contiki can achieve

this by having customer recommendations (Kannan, 2017).

Support Stage

At this stage Contiki can focus on resolving customer issues and providing

customer support. This can be done by offering after sales feedback forums

where customers can openly review their tours. Contiki can also offer customer

services like a newsletter that informs previous clients of upcoming tour dates

and promotions (Mandal, 2017).

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Reference list

Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala,

D. Verma (2018). A Critical Review of Digital Marketing. International Journal

of Management, IT & Engineering, 8(10), pp.321-339.

Chaffey, D. and Smith, P.R. (2017) Digital Marketing Excellence, Planning,

Optimising and integrating digital marketing, 5th ed

Charlesworth, A., 2014. Digital marketing: A practical approach. Routledge.

Kannan, P.K., 2017. Digital marketing: A framework, review and research

agenda. International journal of research in marketing, 34(1), pp.22-45.

IMM Graduate School (2022). FDM 101C: Fundamentals of Digital Marketing.

Study Guide. IMM GRADUATE SCHOOL. Capetown.

Mandal, P. and Joshi, N., 2017. Understanding digital marketing

strategy. International journal of scientific research and management, 5(6),

pp.5428-5431.

Walters, M. (ed.) (2021) THE HISTORY OF ADIDAS: A BACKGROUND OF

COLLABORATION AND INNOVATION, game plan-a.com. Google. Available
at:
<https://www.google.com/search?q=background%2Band%2Bculture%2Bof%
2Badidas&aff=test123#:~:text=https%3A//www.gameplan%2Da.com/2021/08/
the%2Dhistory%2Dof%2Dadidas%2Da%2Dbackground%2Dof%2Dcollaborati
on%2Dand%2Dinnovation/> (Accessed: October 6, 2022).

Wind, J. and Mahajan, V., 2002. Digital marketing. Symphonya. Emerging

Issues in Management, (1), pp.43-54.

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