Taking Adidas Cleats to the streets…in Australia

MKT 333 Final ProjectRocky Worley

4/29/16

Australia- “The land down under”

Australia- 1. Geography (australia.gov.au, 2016)

Physical Characteristics

Australia is the planet's sixth largest country after Russia, Canada, China, the United States of America and Brazil. It is also the only one of the largest six nations that is completely surrounded by water. Australia's land mass is:

▪ almost as great as that of the United States of America

▪ about 50 per cent greater than Europe, and

▪ 32 times greater than the United Kingdom.

Geographical and climatic features

• Australia is the smallest of the world's continents. It is also the lowest, the flattest and (apart from Antarctica) the driest.

• Nearly 20 per cent of Australia's land mass is classified as desert. As well as having a low average annual rainfall, rainfall across Australia is also variable. The rainfall pattern is concentric around the extensive arid core of the continent, with rainfall intensity high in the tropics and some coastal areas.

• Climatic zones range from tropical rainforests, deserts and cool temperature forests to snow covered mountains.

Australia- 2. Demographics (CIA World Factbook, 2016)

Population: 24,059,795

• 51% Males 12,270,495 men

• 49% Females 11,789,300 women

Population living in urban areas: 89.4% of total pop. 21,413,217 people

Population between the ages of 25-54 (54.81%) 13,187,173 people

6,355,609 males6,114,241 females

Australia- 3. Economics (CIA World Factbook, 2016)

• GDP: $1.56 trillion

• GDP per capita: $43,929

• GINI score: 30.3

• 72.6% “MIDDLE CLASS”From $35,600$ to $462,500 17,467,411 people

Australia- 3.a. Economics (2) (CIA World Factbook, 2016)

Economic Growth• Post World War II Boom

1949-1972

Recessions• 1973–75 recession• Early 1980s recession• Early 1990s recession• Early 2000s recession

Recovery• 13% growth GDP• Unemployment rates: 6.1% (2014 est.)

Australia- 4. Political Environment (CIA World Factbook, 2016)

Political structure• federal parliamentary democracy and

a Commonwealth realm

Political Parties• Legislative, Executive, and Judicial

branches

Stability of government• Very stable (democracy)

Australia- 5. Legal Environment (Australian Government, 2016)

Legal System • Common law system based on the English model

Organization of the judiciary system• The judiciary is the legal arm of the government. Independent of the legislature and the executive, it is the role of

the judiciary to enforce Australia's laws. It must also ensure that the other arms of government do not act beyond the powers granted to them by the Constitution or by Parliament.

• The High Court of Australia is, as its name suggests, Australia's highest court. Underneath the High Court are a number of other federal courts.

Department of Industry, Innovation and Science• Agency that administers intellectual property (IP) rights and legislation relating to patents, trademarks, designs

and plant breeder's rights.• Participation in patents, trademarks and other conventions

Australia- 6. Culture (Australia's Cultural Diversity, 2016)

Official language(s) • N/A

Other languages• Australian English• Australian Aboriginal• Tasmanian• Torres Strait

Religion• Christians represented 61% of the

population 14,676,474 people

• 31% of the population stated they had no religion or did not state their religion 7,458,536 people

Popular sports• Cricket• Rugby• Australian Rules Football

(has around 700,000 members in the AFL) As of 2015, over 280,000 females participate in the game across

Australiao The AFL is set to establish a semi-professional, nationally

televised women's league competition by 2020

Australia- A. Target Market Profile

Adidas Women’s Rugby/ARF Cleats

Women, ages 25-54 6,114,241

Urban (89.4% of population) 5,466,131

Middle-class (72.6%) 4,438,938

Australia- B. marketing.mix.element.PRODUCT

Adidas Women’s Cleats

b.1. Core product benefits (shared

by all competing products)• Traction• Ankle support• Stability

b.2. Differentiation of your product

I. Brand name• X15.2 Firm/Artificial Ground Cleats

II. Features/benefits• Soft, close-fitting synthetic skin upper• Reinforced cage for game changing stability• NON STOP GRIP (NSG) adds texture to the upper for incredible touch• Revolutionary X-CLAW stud configuration allows for quicker cuts and greater

acceleration• Traction outsole designed for explosive movement on firm and artificial ground

III. Packaging (see picture)

IV. Support services• available 8AM ET – 11PM ET, 7 days a week to take your order, answer questions

about our shoes and apparel or assist you in any way.

• 800-982-9337• Link to online service

Australia- C. marketing.mix.element.PRICE (local currency)

Adidas X15.2 Firm/Artificial Ground Cleats• Suggested Retail Price

$144.61 ($110 U.S. dollars)

Competitors Prices

Nike Mercurial Superfly FG• Women's Firm-Ground Soccer Cleat• Suggested Retail Price

$361.52 ($275 U.S. dollars)

UA Flash FG• Women’s Soccer Cleat• Suggested Retail Price

$92.01 ($69.99 U.S. dollars)

Australia- D. marketing.mix.element.PROMOTION

Objectives

• Differentiate a product (best soccer cleat at the best price)

Suggested mix (advertising, sales promotions, commercial and appearances featuring Adidas sponsored ARF women)

Suggested Retail Price$144.61 ($110 U.S. dollars)

Australia- D.1. marketing.mix.element.PROMOTION

Themes, ideas, vehicles etc. • Branding elements consistent across all platforms.• Mediums used for promotion include: the Internet, television, advertisements, special events,

endorsements, newspapers, and magazines.

Australia- marketing.mix.element.PLACE

Adidas (New Zealand) Limited

Physical Address:Level 1 Building C, 600 Great South Road, Ellerslie, Auckland 1051

Postal Address:P O Box 22601, Otahuhu, Auckland 1640

Telephone:+64-9-259 7700

Fax:+64-9-259 7705

Website:http://www.adidas.com

Brands/Trade Names/Agencies:ADIDAS

Sold in select locations and available online.Corporate Headquarters in New Zealand (contact info below)

Australia- Rationale

Australian Rules Football’s popularity is on the rise, joining an already popular sport similar to it in rugby, and a global

rise in soccer. Adidas is positioned well, with a headquarters in New Zealand (see PLACE), to take control of the market

for cleats in Australia, starting with women. They have a versatile adaptation of their soccer cleat (see PRODUCT) ,

especially to target these sports “down under”.

They should start distribution of these versatile cleats in their store locations in southern Australia first, and offer them

with all of Adidas’ products online.

The price point falls between Nike and Under Armour for comparable cleats (see PRICE), and appeals to the 72.6%

Middle class (see Economics).

Sponsoring female ARF (Australian Rules Football) stars and featuring them in promotional materials and ads, Adidas will

increase brand awareness of their revolutionary cleats, and increase their market share of the global sports shoe and

apparel market (currently second behind Nike).

Australia- References

Household Income and Wealth, Australia, 2013-14. (2016, March 30). Retrieved from Australian Bureau of Statistics: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6523.0

australia.gov.au. (2016, April 29). Retrieved from The Australian Continent: http://www.australia.gov.au/about-australia/our-country/the-australian-continent

CIA World Fact book. (2016, 01 26). Retrieved from Australia-Oceana: https://www.cia.gov/library/publications/the-world-factbook/geos/as.html

Cowgill, M. (2013, May 13). What is the typical Australian’s income in 2013? Retrieved from We are all Dead: https://mattcowgill.wordpress.com/2013/05/13/what-is-the-typical-australians-income-in-2013/

Export.gov. (2016, 01 26). Retrieved from Australia Country Commercial Guide: http://export.gov/ccg/Australia

Trefis Team. (2013, December 17). Armoured For Growth; Potential Opportunities For Under Armour. Retrieved from Forbes: http://www.forbes.com/sites/greatspeculations/2013/12/17/armoured-for-growth-potential-opportunities-for-under-armour/#707675a6d730

Australian Government. (2016, 02 01). Retrieved from Local Government: http://www.australia.gov.au/about-government/how-government-works/local-government

Australia's cultural diversity. (2016). Retrieved from racismnoway: http://www.racismnoway.com.au/about-racism/population/index-Diversit-3.html