Now-a-days, companies are looking to expand their business overseas in order to attract greater number of customers, attain higher turnover and better returns to derive success. Marketing plays an essential role in such expansion as it helps the firms to introduce their products and services in foreign lands and establish business successfully. In such respect, global marketing practices refer to advertising, promoting and marketing the business offerings across international market. With the advancement of technology, entrepreneur pays more attention to digitalize their marketing and operational practices so as to achieve long-term success in the global competitive marketplace. Adidas is a multinational company that has a strong product portfolio consisting of shoes, clothing and accessories products (Beck, 2015). It carries out operational functions across various countries of the world such as US, Canada, Indonesia, India, Turkey, Vietnam, China, Thailand, Sweden and many others. In the present assignment, there is discussion on the global marketing strategies for those who done business online. There is also an understanding of global consumer behaviour, global business ethics and the way they put impact on the online as well as offline business. Further, there is a study on the pricing strategies as well as on how internal and external factors may impact on the global marketplace.
Critical analysis of global marketing practices of Adidas
Global marketing- It is a different concept as it is not simply to sell the goods at the international place but it majorly include the process in which they make plan, place, position and promote the firm's goods at the worldwide marketplace. In other words, it can be stated that global marketing practices refer to the placement of advertisement and promotional strategies internationally to expand the business overseas. There are various benefits that can be received by Adidas through global marketing practices such as high turnover, large customer base, better returns, competitive strengths, high reputation and a strong brand image.
It will also help them to increase brand image of the firm's product in minds of customers (Kasemsap, 2015). Apart from this, global marketing also enables Adidas to reduce the overall cost and achieve benefits of economy of scale due to high production. It is a type of process that makes company's products or services popular at worldwide that can be possible with the help of international marketing strategies. As already said, that Adidas operates at multinational level, therefore, it is important for the business to innovate their marketing practices so as to grab crowded audiences to the business and attain targets successfully.
In the current corporate world of globalization, it explores a wide range of opportunities for the corporations to expand their operations in an international market other than their domestic nation. According to the views of Beck (2015), in the complex and highly uncertain market environment, it becomes important for companies to examine and evaluate the external factors so as to devise an appropriate marketing strategy. Globalization bring a significant level of effect on the international marketing practices in diversified ways. Rising and growing use of e-commerce, technology, political and economic changes along with removal of trade barriers also allow an organization to focus not only on the domestic or home country but also on foreign lands. In this regard, globalization makes it easier for Adidas to establish global outreach through promoting & advertising their products inside and outside countries.
Similary, Garriga,Flores,Cechich and Zunino, (2015) presented that main objective of the global marketing is to establish worldwide presence or connectivity. Globalization provides various opportunities to marketers for the same. Technological advancement such as web technology and social-media networking help establishments to create a strong connectivity with the outside world and enable them to expand business across nations.
With reference to Adidas, it aims to become the industrial top leader, therefore, it created a multi-brand international marketing strategy which enables the firm to capitalize market opportunity. Under international marketing, company is committed to strengthen their brand and competitive position through promoting and advertising goods. High quality product, unique identity and broad range of goods portfolio generated substantial benefits to the firm through promoting goods in outside market. Adidas mainly focused on market with the highest potential so as to grab large and profitable opportunities, more importantly, in China and Russia.
Contrary to this, Crane, Kawashima and Kawasaki (2016), presented CAGE Framework to present the challenges under global marketing area. The theory demonstrates that Adidas faces various threats in international marketing strategies such as cultural differences, differences in laws, regulation and advertisement policies and many others. Two countries have different languages, religion, norms and ethnicities, therefore, this makes it extremely difficult for the marketers to positively influence overseas customers through marketing. Culture plays an important role in affecting buyer’s purchasing decisions and therefore, it seems really important for Adidas to discover the cultural changes among countries and plan accordingly. Here, the most challenging task for company is to decide the degree or level of standardization versus adaptation in global marketing.
The table presented above clearly differentiated both the international marketing practices, as under the standardisation, same range of goods at same price are delivered by the company at uniform locations. In the standardisation, Adidas develop products and they market those goods worldwide by adopting the standardisation marketing mix as well as they have done a mass marketing (Garriga,Flores,Cechich and Zunino,2015).
Contrary to this, in the adaptation there, different range of products is delivered by Addidas considering the cultural differences and charge competitive prices. It enables Adidas to take advantage from various levels to increase the satisfaction level of customers. Moreover, they adopt the mixing standardisation and mainly focus on the customization in that way to minimize the overall cost. The main essence of the Adaptation strategy is the segmentation and they usually think globally act as a locally.
Benefits of adaptation strategies are like these help Adidas to enhance quality of products and services along with minimizing the overall cost (Hirst, Thompson and Bromley, 2015). Along with that, it rapidly improves production capacity, decreases the cost of raw material and one of the most important is that to increase the company's brand value. Along with that, the adaptation strategies help company to modify existing goods or services that help them to develop innovative products. They provide goods or services in regional market that suit to customer and increase profits of the firm.
Critical analysis of online business practices of Adidas
Online business strategies- Adidas can adopt internet business strategies that help the firm to make establishment to target the potential segment demographically. Thus, it provides a report of market strategy as well as planning that help the organisation to enhance its brand (Hitt, Ireland, and Hoskisson, 2012). Company can develop a right web design as well as utilize the search engine optimization that are related with the keywords. Also, there is another online strategy, that is, email marketing through which the useful information can be sent directly to a large group of people. The internet business strategies have a wide scope that market a larger area without consuming more energy as well as money. Therefore, it have benefits that help the business to capture the market at global level and retain a large number of customer by making an international relationship with the other business.
Another main benefit of using internet business strategies is that it saves cost and able to transfer the information most effectively without spending a lot of expenses on advertisement (Pieterse, 2015). Therefore, the company have advantages as they can easily take feedback from the customers when they do online business by adopting internet business strategies that help them to make the products as per the customers’ needs and desire that can be easily fulfilled. Thus, it will increase the satisfaction level of customers at a higher level.
The Adidas moved towards the online marketing strategy so that it can make promotion of its all products and services at a larger level along with some improvements in expansion plans. For this purpose, mentioned company has taken the assistance of various social media sites and online distributor channels which have contributed in making a better connection with customers. aumotte, Lall and Papageorgiou, (2013) has stated that online media of marketing has become an important tool in recent years without which the success of a particular brand cannot be imagined. The cited enterprise have used the online tools like Facebook, Twitter, and other online channels. Through Facebook, the organisation makes promotion of its various new products and services. It helps in providing a good communication platform for the company with their target customers. Besides this, for making promotion of its brand, the firm adopts strategy of creating a Twitter account. Through this account they provide all the necessary details regarding new product which helps consumers in getting detailed information about new products and services.
Thus, it helps in matching the needs and demands of target customers in appropriate way. In addition to this, they take help of Youtube as well which is a significant tool for displaying the products and services of mentioned entity (Athukorala, 2011). Further, the use of its official website for selling its final customer also demonstrates online presence of cited venture in better way. The major advantage of selling products directly through these online platforms is to save the cost of distribution. Further, it also gives an opportunity to make a direct contact with customer so that a better communication can be developed among the customers. Lambin and Meyfroidt, (2011) stated that nowadays, it is very common to use mobiles by the customers.
They make use of mobiles for various purposes and are also quite active on internet. Therefore, it will be a wise strategy to make use of mobile applications for customers. In this sense, the Adidas has used this strategy in right manner. The firm has adopted the strategy of using mobile application under which it has made very customisable for customers to use the mobile application launched by company. Here, clients can easily shop for their desired product after analysing it in detail and decide on its purchase. Apart from this, it becomes easy for them to shop for desired product as and when they like without visiting the outlets physically. For encouraging this activity to a higher level, the organisation has provided the facilities of discounts on making purchases through apps (Beck, 2015).
Weakness and areas for improvement
There are a number of weaknesses currently which are creating issues for mentioned entity in performing and also in generating intended revenues. Among these weaknesses, some of the common ones are:
High cost of all the products and services which are generally targeted towards high class customers. This increased cost of the products belonging to Adidas make the target market of this company contracted till limited customers. Apart from this, it also makes them vulnerable towards various threats as it works with a limited scope while Adidas works in a narrow segment.
Another major weakness of this company is that it releases very limited product ranges which as compared to its competitors are very limited (Kasemsap, 2015).
There is an intense growth of its competitors in market which poses a great thereat as the customers are switching to other brands due to company's weakness of offering less choices and varieties.
Possible solutions to overcome weaknesses
As per the above stated weaknesses, it is evident that company needs to perform a strategic analysis to attain a better price structure for products and services it deals in. it is evident that firm's products belong to higher ranges which are specially targeted towards high class people and not affordable by middle income level persons. Therefore, enterprise can review its price strategy that cab help in attainment of competitive prices or it can release a new product range of sportswear that are available on affordable price for lower and middle level people.
Another weakness of its limited product range can be resolved through conducting a proper market research that can help in getting information related to current market trends and desires of customers (Crane, Kawashima and Kawasaki, 2016). Thus, it will be helpful for organisation to workout on this study and come up with a number of strategies that can be helpful in attainment of wide range of products. In addition to this, the enterprise must make some strategies to make innovative products or giving differentiated services so that customer's switching costs can be minimised.
The present marketing strategies adopted by the Adidas are quite ethical as it has not violated any of the legal practice through its strategies. Apart from this, it has followed all the legal implications that are necessary for conducting the business and carry out activities related to it. It does not use information of its customers in unethical way as well as it fulfils its responsibilities towards clients (Garriga and et.al., 2015).
Recommendation for global business practice
It is apparent that the presence of Adidas in global market is quite good as it holds a good position in market. Yet there are some strategies that can be followed by mentioned company so as to survive in high competition:
The said company can embrace the Porter's Ansoff matrix which will aid in attaining the cost leadership and differentiation strategy.
The company can also make expansion by diversifying product ranges like making some products of sportswear for females sports person.
It can also make some sponsorship programmes of sports events that can help it in getting more exposure towards this field.
It must make an analysis that can help in diversifying in the local markets as per the needs and demands of customers (Hirst, Thompson and Bromley, 2015).
Recommendations for online business activities
The cited venture is performing well in online and digital business practices. Yet there are some scope which can help in promoting this business in a better manner. These recommendations are :
Organisation can use internet advertisements in more aggressive manner to capture more market share.
The website of mentioned company must be developed in a customised manner so that customers can search their intended content more easily at a single location.
The stated entity must make plans for improving its online payment system so that they can provide better facility of making online purchases.
The scope of search engine should be made better and with better opportunities of pay per click advertisements (Hitt, Ireland and Hoskisson, 2012). The online system with an improvement in advertisement of products and services at a wider level will aid in making the company recognisable at a global level.
The present report is based on Global marketing and digital business. This report has discussed about the Adidas organisation which takes an active part in digital marketing. Apart from this, the report has discussed about the online ways through which firm makes marketing efforts like social media sites, mobile applications etc. on this basis, it has also made an effort to expand business with the help of various factors like pay per click, sponsorship programmes etc.
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