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A. INTRODUCTIONExecutive SummaryAdidas Inc. is a marketer of sports apparel and athletic shoes. The German manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. In keeping with the brand image is its association with the distinctive logo and its advertising slogan, "Impossible is Nothing." In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion. At the critical time of global economic crisis, Adidas will react to the consumers pessimistic attitude and stressful emotion during this period. It may become a good chance for Adidas because it can take advantage of its previous advertising way of Impossible is Nothing campaign by sponsoring sports stars to express the corporate philosophy of grit, determination, passion and humor, giving people more courage and psychological comfort in face of economic crisis. But besides that, we also focus more about family function especially in Asian countries which emphasize a lot on family, which can provide caring emotional communication. Therefore, from both strong-willed hero worship and water-like fork environment, customers can easily link Adidas image with not only strength, but also warmth. The preferred media we choose are TV, specific magazines, outdoor and internet.

Company BackgroundAdidas was formed by German sports apparel by the founder Adi Dassler during the 1920s. While Dassler was in his mothers wash room he decided to begin an athletic shoe. After he made the shoe he had help from his brother andtwelve other people to produce around 50 handmade shoes per day. These athletic shoes were made for running and training.For over 80 years, Adidas has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, Adidas is a global leader not only in the shoe industry, but also in the sporting goods industry. Shoes from the Adidas are available in virtually every country of the world. Oddball is proud to carry quality large size Adidas, (www.oddballshoe.com). Recently Adidas and the NBA joined forces and made The Brotherhood. The Brotherhood consists of Tracy McGRady of The Houston Rockets, Dwyane Wade of The Miami Heat, Tim Duncan of The San Antonio Spurs, Chauncey Billups of the Detroit Pistons and Gilbert Arenas of the Washington Wizards. When it came down to it Adidas and the NBA came up with the slogan called Basketball is a Brotherhood.The main focus of The Brotherhood was Adidas to sponsor the NBA. The way these six players were selected was by their athletic ability which is why they are also known as all stars. Then these six players decided to form a series that would help kids to discover their dream by playing with NBA Stars.A strong advertising and public Relation events makes adidas as a worldwide recognized brand and it would be more sustainable in the world market.

B. SITUATION ANALYSIS

Adidas AG (pronounced [AH-dee-'dahs]; often in English, FWB: ADS) is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylor Made-adidas golf company, and Rockport. Besides sports footwear, the company also produces other products such as bags, shirts, and other sports and clothing related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike. The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The company revenue for 2008 was listed at 10.799 billion and the 2007 figure was listed at 10.299 billion, or about US$15.6 billion. The situation analysis consists of the market trend analysis and competitor analysis.Cultural ContextConsumer in the Philippines are well known as a shoe lovers that is the reason why variety of local as well as international brands are entering the Philippine market thru globalization to offer there different product particularly the sports apparel. In the Philippines, Marikina city is known and even also outside the Philippines as the Philippines Shoe Capital. Aside from the local brands, Filipinos also influence by different foreign brand when it comes to shoes, one of the famous brands in the shoe industry is the brand Adidas which is one of the favorite brands of the Filipinos when it comes in shoes. Filipinos is consider as a fanatic of shoes weather men or women of all ages, because in the Philippines, shoes symbolize or represent authority and power, but they can also represent humility, servitude. In older times, not all people could afford buying shoes (slaves often didn't wear shoes), that is why they are associated with wealth, freedom and comfort, but also with the other side of the coin: vanity and arrogance. And lastly, the reason behind the success of the shoe industry in the Philippines is also because of the culture that Filipinos adopted from different countries like United States of America, Japan and China who are also well known when it comes in the shoe market.Historical ContextAdolf Adi Dassler was inspired by a single idea when he made his first shoes in 1920, at the age of just 20. His vision was to provide every athlete with the best footwear for his respective discipline. It was this principle that guided him right up until his death in 1978. 700 patents and other industrial property rights worldwide are proof of his permanent quest for perfection.His first shoe, made from the few materials available in the difficult post-war period, was produced from canvas. A passionate athlete himself, from the very beginning Adi Dassler was in close contact with sports participants and was always present in person at important sports events.Adi Dassler focused his work on the classic disciplines of track and field. Athletes wore special shoes from his workshop for the first time at the 1928 Olympic Games in Amsterdam. In the mid 1920s he was already experimenting with spikes.In the mid 1930s Adi Dassler was already making 30 different shoes for eleven sports, and he had a workforce of almost 100 employees. In less than two decades adidas advanced to become the worlds leading sports shoe manufacturer.After the turmoil of the Second World War, Adi Dassler made a fresh start. In 1947, with 47 workers, he began putting into practice the knowledge gained from the pre-war period and also new ideas. Adi Dassler made the first post-war sports shoes using canvas and rubber from American fuel tanks. In 1948 he introduced adidas as the company name, a combination of his own first and last name. One year later he registered the - to this day - unmistakable Three Stripes.The breakthrough came for Adi Dassler when Germany won the Soccer World Cup in 1954. In the legendary Final against Hungary, the German team wore boots with screw-in studs by adidas.Parallel to the rapid developments in sport, Adi Dassler strove to specialize and optimize his products. Adi Dassler was the first entrepreneur to use sports promotion in order to make the public aware of his innovations. He started using well-known athletes as advertising for his products. Many famous athletes such as Jesse Owens, Muhammad Ali, Max Schmeling, Sepp Herberger and Franz Beckenbauer counted themselves among the friends of the Dassler Family.Aggressive publicity became one of the cornerstones of his corporate policy. From now on, Adi Dassler came up with a product innovation for every major event, documenting the superiority of adidas footwear. In constant contact with active athletes in a wide variety of disciplines, he developed the optimal shoe for almost every sport. Together with his son Horst, Adi Dassler created an international company that was, and still is, present at all the worlds sporting events. From the mid 1960s, adidas also started producing apparel for competition and training. Ball production began in 1963, and ever since 1970 the Official Matchball at all major soccer events has been an adidas product. Adi Dassler died in 1978, at the age of 78. Carrying on his heritage and his ideas, his name and his developments will continue to help athletes in their efforts to push the limits of performance, on into the new millennium.Following the death of the company founder, Adi Dasslers widow Kthe and his son Horst took charge of running the company. Horst Dassler perfected the opportunities offered by sports promotion. Under his guidance, adidas became a global leader in the sector of innovations in sports marketing. He was also responsible for establishing the brand in France. Horst Dassler died unexpectedly in 1987, at the early age of 51.In 1989, adidas was transformed into a corporation (Aktiengesellschaft). At the beginning of the 1990s, after a difficult transition period, adidas returned to its roots and its original objective. Producing top products in top quality again became the companys guiding principle. In 1991, adidas launched adidas EQUIPMENT, a line of performance-oriented, functional footwear and apparel. With streetball in 1992, adidas started specifically addressing a younger target group. In 1993, Robert Louis-Dreyfus took over management of the company. The Frenchman initiated the comeback of the Three Stripes. In 1995, the adidas share was one of the most interesting new introductions on the stock market. In 1997, adidas AG and the Salomon group combined to form adidas-Salomon AG. Since 2001, Herbert Hainer has been leading the Group.In October 2005, the Salomon business segment, including the related subsidiaries and brands Salomon, Mavic, Bonfire, ArcTeryx and Clich, was sold to the Finnish Amer Sports Corporation. Industry Analysis It is extremely high for the competition among industry rivals. The dominant forces in the industry are Adidas and Nike who are striving to expand into new and emerging markets while trying to outdo each other, specifically Adidas trying to overtake Nike, by expanding product lines, increasing R&D and advertising costs. New Balance and Puma which account for the smaller forces in the sports equipment industry and need to make a presence in the online market place since they have rather low market share in the retail market. The threat of new entrants into the market is a low to moderately low because the lack of barriers for entry. However, with dominant players like Adidas and Nike, competition would make it difficult with the necessary capital to invest for a start up, R&D, marketing and advertising, endorsements of popular and upcoming athletes who do not have a contract with a company yet, and the ability for production whether outsourcing or in-house. It is high to extremely high for buyers because of the price sensitivity for buyers purchasing bulk orders in the current economic climate. The buyer switching costs for substitutes are low with an industry of only a few major companies, leads to a strong bargaining power for buyers. And lastly, the threat of substitutes is moderate from the consumer always looking for a reasonable price. With only a few major companies in the sporting goods industry, it does not necessarily drive price down when the threat of new entrants is low.Market AnalysisThe market demand from teenagers who should be Adidas and most important target market increased very fast and Adidas started to expand its targeting market to younger consumers because of its severe competition with Nike and Reebok. Therefore, since the late 1980s, Adidas has worked to transform itself from a brand of sneakers to a product integral to the sports culture. During this stage, the Adidas brand has become so strong as to place it in the rarified air of recession-proof consumer branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble. Consumers are willing to pay more for brands that they judge to be superior in quality, style and reliability. A strong brand allows its owner to expand market share, command higher prices and generate more revenue than its competitors. With its Impossible is Nothing campaign and strong product, Nike was able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent.Competitor Analysis Adidas guarantee their customers for having a good quality of product. As the sportswear market is one of the fastest growing sectors, the customers choose a sportswear brand based on how they feel about the quality, designs, and the price. Adidas has two lager competitors Nike and Rebook. Besides that it would have several small competitors. A SWOT analysis would be helpful to understand the competitive environment.

SWOT Analysis

This SWOT Analysis can give insights to the Adidas internal strengths and weaknesses and the external opportunities and threats of the business. These analysis shows where the organizations do well and what areas do the Adidas need to improve.SWOTSTRENGTHS

Largest International portfolio of sport ambassadors.

Sponsors of different events around the world High brand image WEAKNESSES

Rigid pricing structure.

Limited design to offer compare to their competitors

Has not doing well in some country

OPPORTUNITIES

Has a great opportunity to expand international market.

Increasing demand on the sportswear.

Positive and increasing market trends can increase through the effective advertising.

Wide variety of products offer to the customers.

THREATS

Adidas larger competitor Nike has a greater market share and having a big budget in marketing activity.

The several brands like CAT, GAP has increase their advertising budget in recent years. Amount of competitors increasing day by day. Competitors may copy and make several versions of the products at different or affordable prices

C. OBJECTIVESThe overall objectives of this Advertising plan are: To establish brand-switching of 40% from customers from competing establishments within 5 months. To increase sales revenue by the end of the year 2015. To maintain or establish customer loyalty of at least 60% with its current customers. To increase the demand for Adidas by 40% by the end of 2015. To reach out to the 50% of the target market around the Philippines with the use of social media such as Facebook, Twitter, and/or Instagram. To be committed to improve competitive position. To inform and persuade potential customers to try Adidas. To increase or maintain customer awareness.D. BUDGETING The only method of budget setting that focuses on the relationship between spending and advertising objectives is the objective-and-task approach. This advertisement will cost:MediaCost/mediaFrequencyCost

TV Commercials

DaytimeP80, 000.002 slots/dayP160, 000.00/day

PrimetimeP250, 000.006 slots/nightP1, 500,000.00/night

Radio Ads

DaytimeP9,000.003 slots/dayP27, 000.00/day

PrimetimeP12,000.005 slots/nightP60, 000.00/night

Print Ads

Inside front cover(7.26 x 11 with border)P37,000.0012 cover/yearP444, 000.00/year

Billboard (20x40ft)P16, 000.0050 pieces (selected places)P800, 000.00

TOTAL COST P 2,991, 000.00

E. STRATEGYAdidas: Shoe love is True loveA. TV Ad The media vehicles that were used for television will be ABS-CBN Sports Channel, TV5 basketball games and ESPN. Adidas can use this opportunity to reach all the audience of the said TV channels. Many potential audience watches in those channels. B. Radio Ad The reason for choosing this medium is because there are lot listeners. It can reach a wide range of audience such as people going to work or people on their way home. Even students, housewives, men and others can listen to the radio. It is good to run the ad during the evening where many workers and students go home and where a lot of sports fanatic is listening during their rest time.C. Print Media The continuous used of billboard will definitely create awareness among the target audience. You have to constantly remind them of your business.And also by using advertising at different sports magazine, the media vehicles were going to be used for magazines were UAAP magazine, Chalk magazine and Mens and Womens health magazines. By using brochures Adidas will distribute 5,000 brochures per week and will advertise in magazines every month for the whole yearD. Internet The constant innovation of technology allows everyone to access the internet anytime. This is a good medium for advertisement with no cost at all. The recent trend for entrepreneurs is posting their advertisements online. Adidas will constantly update their Social Media account for the promos they can avail and they will also post feedbacks from customers to enhance more the products they are going to offer.F. EXECUTIONTimetable of Activities (January-December 2015)January Interview all the people in the organization. Gathering of companys information regarding its story, employees, staff, and management.

February Brainstorming with the owners regarding on how the advertisement will look like. Ideas will be screened and assessed.

March Final ideas will be processed. Storyboard will be made. Casts for the commercial will be selected. Filming of the commercial will start.

April Editing of the commercial. Final edit to be shown in the management/owners for approval. Search and bargain air time costs for local networks to air the commercial.

May Adidas photo shoots for the companys products.

June Development of mobile app for Adidas Let the owners ideas contribute to the features of the app.

July Assessing the commercial if there are changes to be made.

August Search for other TV networks as to where to air the commercial. Making the final budget for the said airing of commercial.

September Have surveys to customers on how they have known Adidas Open ideas to management about promos and packages.

October

Create different social media account. Update followers of these accounts regarding updates on products, promos, and packages available.

November Contacting a known TV network to fully air the commercial and widen its reach on a national level.

December Assessment of the whole advertising campaign through feedback from the social media accounts and surveys from customers to know how effective the campaign is.

G. EVALUATIONAfter implementation of our plan, our next step is to evaluate our campaign to check our track whether we are going towards the right direction which we planned through this campaign. The evaluation strategy is:After the execution sales have been checked. The sales of Adidas after the execution of ad have been compared with the previous few months sales volume. The sales volume has been increased after the ad/ campaign being executed. People have become aware of the existence of the new products that Adidas offers. Also, customers who want to avail Adidas products have been increased that also led to increase in sales volume.