October 15th, 2016


Mobile Marketing Case Assignment

1. Nike is the leading sports brand and has a larger advertising budget than Adidas ($1.4 billion vs. $900 million). Nike is especially dominating in the Basketball market, which has a strong influence on the 'Urban Cool' trend, which is prevalent among the lucrative segment of 12-24 year olds. In order to beat Nike, Adidas' advertisements have to be more effective.

Many of Adidas competitors are failing at adapting to the changing technology, which provides an opportunity for Adidas to stand out of the clutter with the new technology of mobile marketing. However, Nike is also using mobile advertising. Both companies had recognized that particularly their target audience of 12-24 year olds devoted more and more time to their mobile phones rather than watching TV.

Considering that they're going a different way than Nike and offering free content to the first users and rewarding word-of-mouth with credit for free content, I see a lot of potential for Adidas' campaign, especially in terms of creating buzz.

Buzz is very important for Adidas, because it is one way to advertise with a lower budget and still be more effective.

The case study doesn't mention Reebok's mobile marketing efforts, but assuming that they didn't make any, Adidas would be able to effectively beat Reebok in one of its target markets: Hip Hop.

Furthermore, looking at the relatively low position Adidas had in this market segment and in the USA in general, it would be a lot easier for them to gain shares, thus making the campaign successful.

 

2. All of Adidas previous mobile marketing campaigns had proven to be very successful, some even exceeding expectations and all leading to an increase in sales. Especially the R2L campaign showed that Adidas understands how to create buzz.

They should learn from the previous campaigns and keep creating compelling content that would attract users. The server crashes should also be a lesson to them and teach them to scale the Respect ME accordingly, even in such a way that it could handle a larger load than expected. Otherwise a server outage would most probably just end in lost revenues.

Considering that they're going a different way than Nike and offering free content to the first users and rewarding word-of-mouth with credit for free content, I see a lot of potential for Adidas' campaign, especially in terms of creating buzz.

Judging by the success of their previous campaigns, they will be able to create content with Missy Elliot that will attract users to use and share it and thus making the campaign viral and very successful.

 

3. Hard to imagine today, but Missy Elliot used to very influential in Hip Hop and in the entire fashion trend surrounding it. She was a major influencer in Adidas target segment of 12-24 year olds. Unfortunately, the case study doesn't explain why Missy Elliot changed from Reebok to Adidas. Did Reebok not find her effective enough (lower ROI than expected)? Did Adidas offer her more?

Assuming, that she does have enough influence, creating a special song about Adidas could prove to make the campaign very successful, as Run DMC showed with "My adidas". This is not even considering that Hip Hop has now a much bigger influence than back in the days of Run DMC

 

4. Adidas has rather general, unspecific goals, which will be most likely met.

  • Show the product line
  • The user can access the Respect ME collection through his cell phone. Additionally, the user receives updates of new products in the collection.
  • Create consumer demand
  • By having Missy Elliot promote the advertisement and making it cool among the Urban Cool fashion, they will be able to create consumer demand.
  • Drive traffic to retail outlets
  • The users can find the closest Adidas store to them. However, they could have also encouraged users to come to their outlets by rewarding them with free credit to access content.
  • Help consumers locate the products
  • Again, the user can find the closest store by the ZIP code.
  • Grow the existing database of Missy fans and capture SMS data
  • Through rewarding users who share info about the campaign, they will be able to grow the Miss Elliot fanbase and caputre a lot of SMS data.
  • Alert fans to product line activity, such as Missy press updates and ?appearances
  • Again, they can keep updating the users through their phones of the newest updates.
  • Enable users to download exclusive Respect M.E. mobile content onto their handsets for viral promotion
  • Can be done and has several incentives for the user. In contrast to Nike, it is cheaper for the user to download content.

 

5. Mobile marketing is the right way of advertising for Adidas in order to overcome their challenge of a lower advertising budget. I see one difficulty in the requirement of credit cards to access content, considering that most 12-24 year olds don't own a credit card. They should do this as they had in the past, where the user could be billed via their phone bill.

Other than that, I believe that with Missy Elliot they will manage to create the necessary buzz and make this campaign successful.