The Success of Adidas’ Olympic Games Brand Strategy

At first glance, the dim forecasts which surrounded the fusion of adidas and Reebok seem to cede come true. For three supremacyive years later on the merger, adidas AG has yet to fully benefit from the expected synergies of the two companies, with Reebok steady posting a negative growth in net gross gross revenue and profits.In 2007, for instance, the company posted a measly 2. 1 percent sales growth, obviously dragged by reeboks low performance. (Adidas AGa, 2007) As predicted, the main enigma facing adidas is adeptly managing a brand portfolio especially with two highly homogeneous brands and product offerings.On the other hand, Adidas is currently launching a new promotional campaign based on the 2008 prodigiouss which has the potential to increase Reeboks nominal head in the Asian market and revive its faltering sales performance. Clearly, Adidas Olympics themed promotional campaign is bound to have a positive impact in raising the companys brand equity especially in t he Asian market. Undoubtedly, the Adidas Olympics campaign is a significant part of adidas global outline of penetrating and dominating the Asian market.This strategy is primarily targeted at capturing a significant market share by ensuring adidas mien and leadership in mainland China, which is Asias biggest market. As the official sponsor of the Olympics in China, adidas is able to lead to the Asian market the companys corporate values of a passion for sports and a sporting lifestyle. (Adidas AGa, 2007) According to the company, the Olympic Games campaign with the rally cry Together in 2008, Impossible is Nothing is about drum up the nation and showing how the entire Chinese nation is supporting their athletes and the Games themselves. (Adidas AGb, 2007) Likewise, the Olympic campaign builds on Adidas earlier brand motto, United by variant which reflects the companys sporting culture. In this aspect, Adidas has an advantage over its rivals, curiously Nike, as adidas sponsors hip of the Beijing Olympics not only associates the company with the symbolic meanings of sports and the Olympic Games barely also complements Adidas forward integration strategy through the presence of 4000 adidas retail stores in China.(The China seam Network, 2008) Hatch & Schultz (2001) note, for instance, that brand achiever is determined by the strategic alignment between company image, vision, and culture. (p. 5) Adidas interlocking in the Beijing Olympics guarantee a higher level of word-painting and promotion of adidas retail outlets, while at the same time reinforcing adidas fond image for Chinese and other Asian consumers. Meanwhile the primary threats to the success of adidas Olympics campaign are guerilla marketing tactics of rival companies and the controversies that giving brands often attract from their participation in highly publicized events.Svetlicic & ampule (2008) observe, for instance, that although Adidas is the official TOP sponsor for the 2008 Olymp ic Games, 22 of Chinas 28 teams will be wearing Nike during their athletic performances. (p. 19) Hence, adidas most blotto rival may be employing a more cost-effective route of branding the Olympics through direct athlete sponsorships. Likewise, Wagner (2008) warns that the sponsors of the Beijing Olympics are move a risky, double-pronged strategy by highlighting their presence in the games with Chinese consumers while downplaying this in the West.However, adidas Olympics sponsorships may be able to hurdle these challenges. For instance, Nikes guerilla marketing tactics may backfire among Asian consumers who magnate interpret Nikes branding efforts vis-a-vis its refusal to sponsor the Olympics as insincere and cheap. In contrast, sponsoring the Olympics differentiates Adidas culture and image from its rival Nike, as it could be seen as a sign of the companys commitment to sports. Likewise, adidas does not have the same baggage that Nike has in terms of being embarassingly assoc iated with sweatshop labor, which could insulate it from controversies.Thus, it is intelligibly that Adidas Olympic Games Campaign will succeed in establishing the company as the sporting goods leader not only in China but in the Asian market. Works Cited Adidas AGa (2007). Annual Report 2007. Retrieved Aug. 13, 2008 from http//www. adidas-group. com/en/ intelligence activity/archive/2008/05_06_2008. asp Adidas AGb (2007). adidas China launches its olympic games campaign Together in 2008, Impossible is Nothing. Retrieved Aug. 13, 2008 from http//www. press. adidas. com/DesktopDefault. aspx/tabid-11/16_read-8434/ Hatch, M. J. & M. Schultz (Feb.2001). Are the strategic stars aligned for your corporate brand? Harvard Business Review. Svetlicic, Z. & F. H. Vial (2008). The four fronts of the upcoming olympic battle. The Hub, 2518-21. Wagner, W. (2008). Sponsors Find Olympic Connection a Double-Edged Sword. Retrieved Aug. 13, 2008 from http//www. spiegel. de/international/business/0,1 518,552074,00. html The China Business Network (2008). Adidas and the Beijing 2008 Olympics. Retrieved Aug. 13, 2008 from http//thechinabusinessnetwork. com/Advertising-and-PR/adidas-and-The-Beijing-2008-Olympics. html