2.3 Customer retention and customer development
The definition of customer retention is the number of customers doing business with a firm at the end of a financial year expressed as percentage of those who were active customers at the beginning of the year. Besides, for customer development is the process of growing the value of retained customers.
2.3.1 Strategy Retaining Customers
Those strategies implemented by Adidas to keep customer loyalty are Adidas continuously learn about the existing customers. This is because when they know their customers carefully, these will actually allow them to make sound business decisions. As they are creating customers profile Adidas Company try to collect and analyse information about the customers,
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The customers appreciate being recognized, listened to, and understood. Adidas has let their customers know that they care about them in every communication.
Lastly, by retaining the right customers one of the obvious truths associated with CRM is that it is cheaper to keep a customer than to find a new one. Adidas Company has put more efforts in retaining their loyal customers and widen their attention to other potential
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The function of this Adidas 3Stripes software is the platform where the member or the fans can sign up or sign in to be first in line for everything active, original and outing edge in the world of Adidas. Besides, Adidas Company also has event-based marketing, from the interview we knew that Adidas Company Malaysia has been sponsoring in those marathon run and even more event based marketing in overseas for example Football World Cup or the Olympic Games. This is because it will eventually draws attention to the way the company do business and the conditions under which the products are made. Lastly, the strategy that Adidas use is channel integration. The channel integration that Adidas Company uses are through online and offline
Nike is also very committed to ensuring they are fulfilling the needs and wants of their customers. Brand loyalty is a big concern for Nike as long as they continue to focus on these needs they will be in business far into the future.
First, customer centricity is important to channel customer centricity into their company strategy. It will get the whole workforce on track. Next, the collection should keep their customer data up-to-date. They would benefit from building a stable foundation by bringing all of their current customer contacts. The brand should also save all documents including minutes-of-meetings, emails, offers, contracts, and every payment transaction. Then, the company should establish healthy customer relationships based on their customer profile. It is always important to follow-up on customers and to make sure they stay satisfied with the merchandise. Finally, it is all about the customer. Their response is very important. It is viable to surprise and impress their customers, as well as plan and implement multi-phase marketing campaigns(CAS
It is found that there was not a common approach utilized in managing company’s lineup of sporting goods prior to restructuring started in 2005. Although Adidas has diversified in the sporting industry, the company still failed to realize resources fit within the business segments. Furthermore, there are integration problems between Adidas athletic footwear business unit with Salomon’s business units. As the business segments are too diverse, different raw materials and labors as well as processes are required to develop products that did not allow company to capitalize on any value chain. In serving different needs throughout the diversification, the three business segments made with different product mix has faced problems to cross promote the merchandise. In addition, through the varied demands of each business segment, there are no economie...
Product: As an athletic shoes producer, they try to provide better quality and more comfortable shoes that fit to the sport player through research and development. By claiming their shoes meet the physics need of different sports, which help the sport player to maximize their ability by protecting them and reduce the sport harm.
This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage. Through an inside-out perspective, Under Armour has been able to concentrate on the growth mission. Its mission is about building ... ...
It will look at the role of promotions as a consumer product company, offer possible promotional objectives, and consider other promotional methods the Nike Corporation may wish to implement in its quest to remain the market leader.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
Nike promotes their sportswear in such a way that their communication objective can easily be achieved. Nike uses following way to interact with their current and new customers:
The marketing goals are: Increase customer retention, Increase eCommerce Sales, Increase our Community Involvement. The first goal specifically works towards reaching 60% repeat sales through different promotional strategies like emotional marketing and sponsoring different professional athletes. Customer retention is extremely important to maintain Nike’s market leader position. Increasing eCommerce is a major focus for Nike. Last year we were able to increase our eCommerce sales by a profitable 51%. Our second goal is to continue this trend by increasing online sales by 50% every year for the next four years. It is our belief that doing so will solidify Nike as a leader in the online athletic market. Nike truly believes that sport can change
Loyalty is a positive propensity for an organisation or brand (Da Silva & Alwi, 2006). In general, loyalty has been considered in various ways, such as positive word of-mouth, repurchase intention and so on. Burton (2002) argued that loyalty is probably better seen as attitude than behaviour.
It has taken a fresh approach by making a foray into sectors like jewellery, footwear, entertainment etc. As a result of this diversification it becomes mandatory for an organization of reliance’s stature to anyhow retain its customers, making CRM an integral part of its Company Policy.
Nowadays, there are so many famous sportswear companies that exist in the market globally, which make people have more product varieties that they can choose. In addition, most of those companies have become very important for its host countries, in terms of supporting their economic development. Yet, the existence of those companies can also possibly bring some problems to the host countries, as well as negatively affect the countries’ people (Pettinger, 2008). In order to explain it better, the existence of Adidas in Indonesia is used in this report to give more information about what makes Adidas becomes a successful company in the world, as well as providing problems that Adidas has in Indonesia.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Since its inception in 1949, adidas have been a leader in innovation; which is also their main competitive advantage in the market place. Along with innovation, the company differentiates itself in the market place with its strong brand equity, supported by a strong global marketing and advertising program.