E-Marketing Case Study #2 (Adidas) -- Question 4

4. How important a role should MMC play in Adidas’ overall brand communications strategy? Is MMC just a novel approach to marketing communications and a marketing fad (is it merely communicating the same message in a new format?), and to what extent should it play a part of overall marketing communications strategy at Adidas or at other firms competing in different industries in the future?

Ans:

a) Based on the analysis in the previous question, we know that MMC(mobile marketing communication) does have great potential in the future. However, the status quo of the 3G wireless technology is not equipped enough to let Adidas giving up the entire traditional channel and transform to multimedia channel. In order to take advantage of MMC early to surpass its competitors, Adidas need to invest in MMC for a certain amount of advertising budget. 

 

MMC’s role in Adidas’ overall brand communications strategy  included:

No.	Contributions of MMC
1	Since mobile is private to individuals, MMC appeals to individual-based audiences rather than mass-based public.
2	Users can control what they want to know in MMC comparing to the traditional marketing channel. That is, users can manipulate the information through MMC rather than looking at the deadly message sent by Adidas.
3	MMC provides recreation, attractiveness, funny and interesting activities.
4	This is the most important point: MMC can create a new shopping channel.   e.g. Users can access a certain company to buy a product through their mobiles. At the same time, they can make use of GPS to position their home location or the nearest convenience shop for shipping.

 

b) MMC is certainly not a marketing fad. The information sent by MMC is much more meaningful comparing with that from the traditional channel. We can explain it by the “Brand in the hand” concept.

 

Brand in the Hand concept means that company is trying to do marketing through mobile channel rather than the traditional one such as Magazines and TV which become inefficient gradually.

 

Because individuals can now be connected anytime and anywhere through their mobiles, mobile marketing can be used to collect data through GPS & wireless technology to determine the exact location of an individual at a given time. We can also analyze the data to guess why he/she might be there. With that information, more meaningful and relevant advertising messages or promotions can be delivered to that individual through the mobile device. For example, we can show an individual where he/she can find the nearest store of Adidas  by his /her location right now. And we can also send him/her some promotion information to attract him/her to visit the store.  This is so called “Brand in the hand” concept.

 

By the “Brand in the hand” concept, it means to Adidas that it would have a chance to surpass its competitors if they start taking advantage of it earlier. And if Adidas succeed in the transformation, its branding efforts can cost Adidas much less budget but with higher effectiveness.

 

c) In order to clarify our answer , we construct the following table:

 

Adidas	So as for Firms in other industries
Promote the MMC to the current customers’ base to establish preference for MMC in their mind.
Construct mobile catalog to show the customers their products at anytime, anywhere.
Provide 3D view of a certain product or environment in a particular shop, or converging the fitness and wearables with the personal shape or photos.
Make use of GPS to show customers the route information about their stores.
Shopping through mobile service and integrated with GPS to provide high quality shipping service at the same time.   e.g. Directly ship to customer’s home or the nearest convenience store (7-11)
Mobile coupons
Spokesman’s music or video
Live sport event
Show real model catwalk with Adidas’ products
Use 3D model to show products in catalog and let customers can virtually try the products according to the information they provided.   e.g. Users can key in their height, weight and physical build in order to have a look at the 3D model to determine whether the products suit them. If it does, they can then purchase that product through their mobile.