Marketing strategy Business 1Adidas Business 2Market penetration:This is when a product is brought by a business’s existing customers.
Adidas use this strategy buy offering their customers with loyalty schemes and memberships which ensure customers come back to the organisation. They also do tv adverts which include well known athletes to captivate the interests of their existing customers. Coca Cola use my coke rewards for their loyal customers as well as having the Coca Cola collectors club. They also offer buy one get one free offers for their customers to keep them buying their products. Product development:This is a strategy which incorporates a new products being sold by a business to their existing customers. Adidas have various technological tools which allow them to develop new products which can attract their existing customers. To attract new and existing customers products are developed according to customer’s tastes and likes.
Also by announcing new offers attracting new and existing customers. Coca cola produce various products varying from home decor to drinks as well as toys to catch the interest of their customers. For example Coke Zero and Diet Coke.Market development:This is when a business tries to look for new customers to buy their existing products.
Adidas have markets in Asia,Europe and North America which expands its operations. This provides them numerous opportunities as they can identify what markets they can expand without using huge amounts of finance. Coca cola have launched new products in order to encourage their female customers to drink more of their products. They launched the Diet Coke and Coke Zero both of which included a smaller amount of calories. This is market development as they are enhancing their products to gain new customers as well as their existing customers. Diversification: This is when a business increases its products to get new customers to buy their products. Adidas sell different merchandise such as caps, balls, water bottles and bags.
Coca Cola sell other merchandise such as house ornaments as well as pens, toys, glasses and fridges. Branding: This is when a symbol or name is created to represent a product and organisationThe Adidas logo includes three stripes used to target the sports industry. The recognition of Adidas’s products allows customers to purchase their products. Although Coca Cola being famous for their original logo whist producing new drinks they also produce new logos to go with the drinks. This allows many customers recognise the brand and buy their products.
Relationship marketing:This is when a business tries to build long term relationships with customers in order for them to come back to the organisation.Adidas give memberships to keep the loyalty of their customers as well as providing the customers with loyalty schemes. Coca Cola use Transactional marketing to keep the loyalty of their customers.
This means that rather than Coca Cola gaining a relationship with their customers they focus on sale transactions.M1Marketing is when a business conduct market research before launching their product to find out customers preferences and what they are willing to spend their money on. Marketing refers to meeting customer needs. Some of the frequently used marketing strategies consist of relationship marketing and branding.
Numerous organisations also use the Ansoff Matrix consisting of market penetration, market development, product development and diversification. Marketing is a vital method in which both Adidas and Coca Cola need to encounter in order to reach their aims, in contemplation of remaining market heads they are obliged to develop alternative products to avoid customer neglect.Both Adidas and Coca Cola use product development as a key marketing strategy as Adidas attain this by selling merchandise as well as offering their customers new products which are developed according to customer’s tastes and likes to attract new and existing customers.Coca Cola also have numerous products differing from drinks, house ornaments and toys. Their present aim would be to stay as market heads in drinks as well as develop alternative products that will captivate the interest of their acknowledged market.
An example of this would be Coca Cola selling Diet Coke which is targeted towards women in attempt to induce their existing female customers. This encourages their existing female market to purchase this product from them and increase coca cola’s sales. Similarly Adidas also produced new products for their existing customers such as the AdiPure III. These are football trainers which were tested before being advertised to the market Coca Cola market their products through diverse strategies consisting of adverts, leaflets and posters.Adidas however have other means of marketing their products such as receiving sponsors by well known athletes in order to advertise their products. An example of this would be footballers such as Lionel Messi which lead to an increase of sales of trainers and other items.
Market penetration is when products are sold to existing customers by an increase in promotions or price cuts. Adidas achieve this by expanding their scale of purchase by a broadcasting activity in order to encourage customers to persistently purchase merchandise from them. They do this by selling their former products such as sports clothing and trainers at an affordable price during the summer term. Coca Cola concentrates on selling their drinks to their existing customers by advertising their products with bargains such as buy one get one free offers as well as special offers advertised by massive organisation an example being McDonalds as well as massive retail stores including Asda and Tesco .
This method is used by both organisations in order to captivate the interest of their existing customers.Market development is a strategy used by both Adidas and Coca Cola in order to find new customers as well as broadening their target market. Adidas have markets in Asia, Europe and North America which expands its operations. The approach of Adidas having markets in these areas is to target their brand to the urban youth using the veracious sports podium and construct and strengthen integrity through sports marketing broadcasts. As well as Coca Cola operating in over 200 countries globally they launched new drinks with intentions on discovering a new category of purchasers for their existing products.
A definitive example of this would be the launch of Diet Coke and Coke Zero. Diet Coke contains no calories which is aimed mainly at the female market whereas Coke Zero contains zero calories which lead to a more masculine interest. Diversification is used by Coca Cola as a means of increasing their products to gain new customers. To do this Coca Cola offer a range of products such as pens, toys, home decor, glasses and fridges. The use of these range of products from Coca Cola is in order for them to receive new customers to purchase products from them as well increase sales.
Identically Adidas also sell a diversity of products such as caps, balls, bags and water bottles in order to obtain a new set of customers to buy their products whilst gaining profit from it also. Branding is used by both Adidas and Coca Cola to allow their customers to recognize their brand. However they differ in the way they are formed as Adidas’s brand contains three stripes whereas Coca Cola is simple through the use of vibrant colours such as white and red. Branding can help both organisations not only be indelible to their customers but also increase the value of the organisation. Whilst doing both it can also assist with advertising as while advertising the first thing consumers see is the logo of the brand.
Therefore if the logo of the brand captivates the public eye they are bound to purchase their products.Relationship marketing is used in organisations in order to create long term relationships with their customers. Adidas use this strategy by giving memberships and loyalty schemes to their customers. This provides information to adidas as every time a customer chooses to use their loyalty scheme the organisation is able to see what products are being sold constantly or what type of products customers are buying frequently so they can either reduce the amount of inventory if sales are not being made or increase the amount of products.
An example of this would be loyalty cards which customers are able to gain points on and can later be transferred into discounts or vouchers. However Coca Cola use other means of this strategy by using transactional marketing which means that rather than Coca Cola having to gain relationships with their customers they solely focus on sale transactions. This method has the motive of increasing the organisations sales by enhancing the capacity of discrete sales alternatively to growing relationships with customers. D1A crucial component of Coca Cola’s victory is their branding.
Their logo is well known, it is identified globally and as a organisation in general is specifically successful for its repute for high value, inexpensive and customer emphasis. It is evident that the use of product development within Coca Cola has been effective as the sales of both their Coke Zero and Diet Coke have earned up to 52% of sales within the market almost as much as their original drink Coca Cola classic. Since the launch of their product Coke Zero it has gained £115m. This shows that the use of product development has worked in favour of Coca Cola as the more products produced by the organisation the amount of people buying it will increase and therefore the quantity of profit increases for the organisation. However the use of this marketing strategy can come at a cost for the organisation but was overall a success. Coca Cola use market penetration as a means of marketing their existing products by offers such as buy one get one free and special offers given by great organisations such as McDonalds. This is effective for the organisation in the way that it persuades more customers to buy their product.
The sales of the organisations drinks are estimated at a rate of 1.9 billion drinks daily. From this figure it is evident that the use of market penetration has increased sales as well as profit for Coca Cola however special offers can be for a restricted time annually and therefore the use of the other marketing strategies is need in order to preserve a good amount of profit.