ADIDAS
ANDY
WARHOL
CONTENT 4 ADIDAS 6 ANDY WARHOL 8 COLLABORATION
10
MACRO ENVIRONEMENT
12 MICRO ENVIRONMENT 14 COMPETITION
16
BRAND ANALYSIS
18 CUSTOMER PROFILE 20 MARKET MIX
22
PRODUCT RANGE
24 OVERVIEW
26 FIGURES
27 REFERENCES
Adidas is a German sportswear brand that was founded in 1949 by Adi Dassler. The brand was discovered in a small town in Germany called Bavaria. Adidas is a global established brand that creates products that are rooted in sports. Adidas has a long heritage and relationship with sports and this is what establishes them globally. The current CEO for Adidas is Kasper Rorsted; he became CEO in October 2016. Adidas’ previous tagline use to be ‘Impossible is nothing’ meaning that everything is possible in some way. Its current tagline is ‘All in’. Adidas is a brand that has lots of connections with athletes, celebrities and clubs and this is what allows them to launch successful campaigns such as the Yeezy trainers and Rita Ora’s Adidas Original collection. Adidas has a range of shoes and clothing that is both affordable but high quality to ensure it is suitable for its working-class customers and also its middle class and upper class. Adidas has collaborated with lots of celebrities and new fashion icons including fashion designers such as Kanye West, Rita Ora, Pharrell Williams, Stella McCartney, Jeremy Scott and Yohji Yamamoto.
ANDY WARHOL
Andy Warhol is a popular pop art artist who continues to influence figures in the art industry through his vivid and fun pieces of art work. Andy Warhols creates masterpieces which all involve different types of media such as painting, drawing, printing and photography. Andy Warhol’s legacy was kept alive by a group of people creating an Andy Warhol foundation which is supported by his work. Another way to keep his legacy alive was by a museum being constructed in 1982 which includes most of his work that he created including exclusive works of art; the museum is located in Pittsburgh, Pennsylvania. Some of Warhol’s most famous and popular artwork is the Marilyn Monroe Diptych (1962) pop art silkscreen painting; Campbell’s Soup Can (1922) pop art painting and his ‘Banana (1966)’ painting/ print which was created for a band album cover called ‘The Velvet Underground & Nico’. Warhol’s art work involves the same concept as other artists such as Roy Lichtenstein, Keith Haring and Romero Britto. They all use pop art and colour to bring a piece of artwork to life.
COLLABORATION
For this collaboration Adidas’ trendy style will collaborate Andy Warhol’s abstract colourful work. The first reason for this collaboration with Andy Warhol and Adidas is to keep Andy Warhol’s legacy alive and a good way to do it is through a popular brand. Sports brands are on the rise and becoming more popular not only as sportwear but as casual wear. Also, Adidas has collaborated with artists and designers before which had a good outcome and successful campaigns and sales for each brand. They are a good brand to collaborate with because they have experience within collaborations and also have an online presence in the sportswear market. Adidas fits perfectly with Andy Warhol because Adidas has collaborated with the likes of Pharrell, Rita Ora who all have a certain background in fashion or are often involved in the fashion industry. They have created innovative prints that are similar to Andy Warhol’s or perhaps inspired. The outcome for this project is to create equality in the sportswear industry which is majorly influenced and dominated by men. Andy Warhol was an open homosexual and it was visible through the way he dressed and looked. He expressed the way he looked through his slightly feminine dress sense. Women and girls wear men’s sportswear and it should be socially acceptable and they shouldn’t be criticised for not dressing as the typical 21st century female.
MACRO ENVIRONMENT PESTEL
POLITICAL
Political factors such as national and international policies and legislation could impact Adidas. The national legislation that Adidas would have to follow is the UK tax which could be Corporation tax or VAT. The UK has left the EU therefore further constraints on trade tariffs and policies would also affect Adidas and how they sell globally.
ECONOMICAL
Economic performance could also have an impact on Adidas; factors such as economic depression, inflation and exchange rates could all impact the brand. With an economic downturn consumer spending could decrease causing future sales to drop. Rising inflation could also decrease spending on Adidas’s core product area.
SOCIAL
Social factors are one of the most important factors to Adidas because they are inherently trend led. Adidas and their competitors, Nike have attracted more customers through cultural trends than traditional sportswear. For example, Adidas launched Yeezy’s, a collaboration with rapper Kanye West, which significantly evolved Adidas into a fashionable and cool status. Previously Adidas was worn more in traditional sports scenarios and is now part of the athleisure trend.
TECHNOLOGICAL
Adidas has a high profile across social media channels and editorial advertising. This profile helps Adidas maintain their status in the market; but also advertises them further. Adidas sells through online and physical stores including: JD Sport, Sports Direct and Footasylum. Customers can purchase on and offline with in store shopping on the decline Adidas can benefit from online sales and reducing business costs.
LEGAL Laws such consumer laws e.g. Sales of Goods Act, Consumer Rights Act 2015 and Data Protection act 1998 have to be followed by retailers. Adidas have an obligation to follow these to remain ethical and ensure consumer protection. Adidas have certain labour laws they must follow, and to remain ethical. Adidas must protect their workers through safety standards and working standards..
ENVIRONMENTAL Adidas manufactures clothing, shoes equipment and most of the materials used can be harmful to the environment such as plastic buttons, lace tips, rubber soles. These products all don’t decompose and can pollute the environment. Transportation creates carbon emissions which again can pollute the environment and lead to plants and animals dying. Therefore, recycling is an important consideration for Adidas to actively support the environment.
MICRO ENVIRONMENT SWOT
ADIDAS -
STRENGTHS Adidas is a well-known company. Nationally and internationally.
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Has sponsored main sports events such as Olympics, sport figures and teams .
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Good at advertising and good history of celebrity endorsement such as Stormzy, Rita Ora, Pharrell Williams.
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WEAKNESSES Some products can be costly for example Kanye west Yeezy’s which is approximately £150 a unit.
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Adidas has lots of competition which means customers could switch brands.
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OPPORTUNITIES Adidas create around 60 new footwear ranges every year, this can be independently or through celebrity endorsement or brand collaborations.
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Adidas has been more innovative with their designs. The designs of the shoe more abstract and risky especially when catering to a large fan base. This differentiates them from their competitors.
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Adidas could collaborate more with sports teams, players and clubs.
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THREATS Adidas’ biggest threats are other sports brands who sell the same type of product as Adidas.
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Other brands such as Nike launch new campaigns etc. which may put them ahead of Adidas.
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Another threat to Adidas is sports brand that produce and sell sportswear and equipment for cheaper.
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Pirated and fake imitations of Adidas’ products could affect Adidas because pirated companies are earning money off Adidas’ brand and logo.
ANDY WARHOL
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STRENGTHS Andy Warhol is an established artist who has a worldwide presence for his magnificent artwork.
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Creates a range of different artwork such as pop art, print making, photography and painting.
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Warhol Museum opened in Pittsburgh, Pennsylvania.
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WEAKNESSES Other artists such as Roy Lichtenstein create pop art which involves the same concept of block colours.
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OPPORTUNITIES The late Andy Warhol has established his legacy. No opportunities required.
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THREATS Other pop art, art photographers, painters and printmakers artists are a threat because they all base themselves around the subject of art however every artist is different and has their own style of working.
COMPETITION ADIDAS COMPETITORS SWOT
NIKE STRENGTHS
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Nike is the world’s leading brand in sportswear, sports footwear and equipment.
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Nike has an established brand worldwide. Its logo is easily identifiable globally.
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Good track record of collaborations with current popular brand amongst youth such as SUPREME, OFF-WHITE, Stussy.
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Has their own independent stores worldwide. Also has exclusivity in certain sports footwear stores.
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Nike take lead in certain international sports teams and events worldwide.
WEAKNESSES
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Nike has received allegations of unethical activity in the way they produce their products for example, poor conditions, bad labour and wage laws to protect their staff nationally and factories in third world countries.
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Even though Nike has built up the highest reputation and establishment for their brand lots of other leading sportswear brands are competition. Trends can almost immediately switch customers into supporting another brand more.
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Nike could create bigger stores in more concentrated areas.
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Nike could possibly launch sports academies that support youth’s talents. They could also sponsor more sports clubs and upcoming successful businesses.
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OPPORTUNITIES
THREATS
Competition is Nike’s biggest threats. Vintage clothing is on the rise and businesses such as Adidas are leading in that industry meaning that they could possibly generate more money for their business. -
Nike also has the same problem as Adidas when it comes to pirated and fake Nike products. Small illegal businesses can cause Nike a bad reputation whilst also making money off their logo and brand.
OTHER NIKE COMPETITORS Adidas Converse Puma Fila Reebok
BRAND ANALYSIS BRAND ONION/
BRAND POSITIONING
BRA
formance, Com Per pa s
m ai
Colourful, vibrant, fun.
colours vib r a p his n t an Kee d h is s
ERSON DP A N
rity, Pa s s nterg i on n, I . tio
preciation, De , Ap dic n a sio
Y LIT
boration is to p colla rod s i th uc r o ea f
keep Andy W t will arh a h ols tt c u leg d V A D L N U A a ro E BR
. ve ali cy
p
D ESSENCE BRAN
ve. ali le ty
Ad i d as ’ HIGH PRICE
LIFESTYLE
PERFORMANCE
LOW PRICE
The axis labels were chosen based on the sports industry. The sports industry is known for having a range of products that differ from prices and its uses. The 21st century has transformed some sports clothing to trendy athleisure which is why one side of the axis is labelled ‘lifestyle’. However, some sports brands have managed to still keep its rooted heritage in sports by still producing clothes and accessories specifically aimed at sports which is why the other side of the axis is labelled as ‘performance’. Puma, Nike and Fila are Adidas’ closest competitors based on how they have been positioned on the map. They are the most threatening to Adidas because they offer the same products which is sportswear and sports accessories.
CUSTOMER PROFILE
DEMOGRAPHIC VARIABLES GEOGRAPHIC VARIABLES PSYCHOGRAPHIC VARIABLES
LIFESTYLE Early stages of career paths. SELF-IMAGE Confident, self-content, thoughtful, compassionate, practical. BUYING MOTIVES Impulse buyer, emotional product buying, influenced by cultural trends. INTERESTS AND HOBBIES Sportswear and sports. ATTITUDES Optimist, humorous, interested.
PSYCHOGRAPHIC VARIABLES
DEMOGRAPHIC VARIABLES
GEOGRAPHIC VARIABLESS
AGE 18-24 GENDER Unisex GENERATION Generation Y- born between 1982-2002, technology savvy. LIFE STAGE Adulthood OCCUPATION University, apprenticeship, full time job. INCOME Living wage
REGION Central London, outskirts of London and some cities around London. AREA Urban areas
MARKETING MIX
4 P’s
PRODUCT The product being made for the collaboration will be a cap. The reason why the collaboration has chosen to produce a cap is because it is not complicated, it’s very practical and affordable for most people. Caps are becoming a popular statement accessory that has become a staple in the fashion industry. The cap will have a sleek simple silhouette with a pop of colour to reflect Warhol’s artwork.
PRICE The price for the caps needs to be competitive. Many sportswear brands sell their products at a lower price. Whilst researching prices of sports caps and hats the average price of the caps were in the brackets of £10£80. The price of the Adidas X Andy Warhol caps will be an affordable £20. The collaboration with artist Andy Warhol will be exclusive and collectable with customers keen to purchase an iconic product.
£73
£15-£30
£20-£60
£10-£20
£10-£40
PROMOTION
£15-£20
For the launch of the Adidas x Andy Warhol campaign the product will be promoted on billboards and London buses. Both methods will attract lots of attention especially in busy urban areas. Adidas has a great reputation for word of mouth advertising especially since launching the Yeezy’s campaign which created an outbreak throughout the urban fashion industry. Therefore, this collaboration will be promoting heavily word of mouth advertising. PLACE Adidas sell sportswear and accessories through independent sports retailers including: JD Sports, Footasylum and Sports Direct. This gives them a wide presence in the market. This campaign will target JD Sports and Footasylum to increase Adidas sales in the youth market; and to target a wider market in-store from teenagers to young adults.
£10-£40
PRODUCT RANGE
CAPS
PRODUCT DETAILS 100% White Cotton Adidas Original logo Andy Warhol’s signature Black applique logo Curved peak Eyelet vents Adjustable back strap fastening Machine wash
RANGE Andy Warhol ‘Banana (1966)’ Andy Warhol ‘Cambell’s Soup Can (1922)’ Andy Warhol ‘Marilyn Monroe Diptych (1962)’
OVERVIEW
Adidas has proven to be successful with every collaboration launch by generating large amounts of profit and attracting customers to their business. The campaigns aim is to create equality in the sports and sportswear industry. This campaign wants to neutralise the difference between men and women for people who feel they don’t necessary fit into those categories. This collaboration also aims to target art enthusiast who represent the contemporary art industry. Now in the 21st century people have become more experimental with fashion and have blurred the lines between sports and art. Previously sportswear was worn more in traditional sports scenarios and is now part of the athleisure trend. Collaborating sports and art also targets people who have embedded sports into their lifestyle and how they express themselves.
FIGURES
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REFERENCES
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