The Success of Adidas’ Olympic Games Brand Strategy
At leading scan, the dim forecasts which concealed the merger of adidas and Reebok look to accept behind penny. For three victoryive years behind the merger, adidas AG has yet to abundantly profit from the expected synergies of the two companies, after a suitableness Reebok steadily posting a disclaiming enlargement in net sales and avail.
In 2007, for illustration, the order posted a measly 2. 1 percent sales enlargement, distinctly dragged by reebok’s low accomplishment. (Adidas AG[a], 2007) As predicted, the deep gist facing adidas is adeptly managing a stigma portfolio distinctly after a suitableness two extremely resembling stigmas and effect offerings.
On the other artisan, Adidas is currently launching a new furtheranceal engagement grounded on the 2008 Olympics which has the undeveloped to growth Reebok’s influence in the Asian bargain and refresh its hobbling sales accomplishment. Clearly, Adidas’ Olympics themed furtheranceal engagement is frisk to accept a assured impression in preferment the order’s stigma equity distinctly in the Asian bargain. Undoubtedly, the Adidas Olympics engagement is a indicative multiply of adidas’ global temporization of keen and dominating the Asian bargain.
This temporization is chiefly targeted at capturing a indicative bargain distribute by ensuring adidas’ influence and chiefship in China, which is Asia’s biggest bargain. As the professional bail of the Olympics in China, adidas is potent to announce to the Asian bargain the order’s urbane values of “a excitement for sports and a sporting lifestyle. ” (Adidas AG[a], 2007) According to the order, the Olympic Games engagement after a suitableness the elevation cry “Together in 2008, Impossible is Nothing” is “about elevation the state and showing how the whole Chinese state is sustaining their athletes and the Games themselves.
” (Adidas AG[b], 2007) Likewise, the Olympic engagement builds on Adidas’ antecedent stigma motto, “United by Sport” which reflects the order’s sporting cultivation. In this side, Adidas has an habit aggravate its emulates, multiplyicularly Nike, as adidas’ bailship of the Beijing Olympics not barely associates the order after a suitableness the symbolic meanings of sports and the Olympic Games but too complements Adidas’ advanced integration temporization through the influence of 4000 adidas vend stores in China.
(The China Business Network, 2008) Hatch & Schultz (2001) voice, for illustration, that stigma victory is rooted by the strategic alignment between order likeness, prospect, and cultivation. (p. 5) Adidas’ multiplyicipation in the Beijing Olympics pledge a conspicuous roll of peril and furtherance of adidas vend outlets, suitableness at the identical space reinforcing adidas’ favorpotent likeness for Chinese and other Asian consumers. Meansuitableness the elementary threats to the victory of adidas’ Olympics engagement are moss-trooper bargaining diplomacy of emulate companies and the controversies that manifest stigmas repeatedly dispose from their multiplyicipation in extremely publicized events.
Svetlicic & Vial (2008) perceive-keep, for illustration, that “although Adidas is the professional TOP bail for the 2008 Olympic Games, 22 of China’s 28 teams obtain be wearing Nike during their vigorous accomplishments. ” (p. 19) Hence, adidas’ most costive emulate may be employing a more cost-effective way of stigmaing the Olympics through plain athlete bailships. Likewise, Wagner (2008) warns that “the bails of the Beijing Olympics are pursuing a foolhardy, double-pronged temporization” by highlighting their influence in the games after a suitableness Chinese consumers suitableness downplaying this in the West.
However, adidas’ Olympics bailships may be potent to hurdle these challenges. For illustration, Nike’s moss-trooper bargaining diplomacy may backfire incomplete Asian consumers who sway declare Nike’s stigmaing efforts vis-a-vis its disapproval to bail the Olympics as delicate and mean. In opposition, bailing the Olympics differentiates Adidas cultivation and likeness from its emulate Nike, as it could be seen as a presage of the order’s commitment to sports. Likewise, adidas does not accept the identical baggage that Nike has in conditions of nature embarassingly associated after a suitableness sweatshop drudge, which could separate it from controversies.
Thus, it is free that Adidas’ Olympic Games Engagement obtain achieve in establishing the order as the sporting property chief not barely in China but in the Asian bargain. Works Cited: Adidas AG[a] (2007). Annual Report 2007. Retrieved Aug. 13, 2008 from http://www. adidas-group. com/en/News/archive/2008/05_06_2008. asp Adidas AG[b] (2007). adidas China launches its olympic games engagement - “Together in 2008, Impossible is Nothing. ” Retrieved Aug. 13, 2008 from http://www. crush. adidas. com/DesktopDefault. aspx/tabid-11/16_read-8434/ Hatch, M. J. & M. Schultz (Feb.
2001). Are the strategic stars aligned for your urbane stigma? Harvard Business Review. Svetlicic, Z. & F. H. Vial (2008). The impure fronts of the upcoming olympic engagement. The Hub, 25:18-21. Wagner, W. (2008). Sponsors Find Olympic Connection a Double-Edged Sword. Retrieved Aug. 13, 2008 from http://www. spiegel. de/international/business/0,1518,552074,00. html The China Business Network (2008). Adidas and the Beijing 2008 Olympics. Retrieved Aug. 13, 2008 from http://thechinabusinessnetwork. com/Advertising-and-PR/adidas-and-The-Beijing-2008-Olympics. html