MKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR Further information relating to the , which range fr penalties for plagiarism

Adidas has worked with the environmental organization Parley for the Oceans since 2015 toprevent the pollution of marine plastic by creating products made from recycled ocean plastic was

MKTG1421 CONSUMER PSYCHOLOGY AND BEHAVIOUR

Title of Assignment Assignment 3: Sustainable Consumption Project

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Table of Contents

1 Executive summary 5

2 Introduction 6

1.1 Nature of the company 6

1.2 Key services/ products 6

1.3 Major Rivals 6

1.4 Market share/sales 6

1.5 Primary target market 7

1.6 Positioning map 8

3 Stimuli of the brand/product/store 9

3.1 Print advertising 9

3.2 TV Advertising 9

3.3 Outdoor Advertising, Events 10

3.4 Online Advertising 11

4 Internal influences 14

4.1 Learning 14

4.1.1 Operant conditioning 14

4.1.2 Cognitive learning 14

4.2 Motivation 15

4.2.1 Safety need 15

4.2.2.Self- esteem needs 15

4.2.3 Self- actualization 16

4.3 Attitude 16

4.3.1 Cognitive 16

4.3.2 Affective 17

4.3.3 Behavioral 17

5 External Influences 18

5.1 Culture 18

5.1.1 Collectivism 18

5.1.2 Nature 19

5.1.3 Passive 19

5.2 Demographics 19

5.2.1 Population Trend 19

5.2.2 Geographics 20

5.2.3 Lifestyle 21

5.3 Group influence 23

5.3.1 Informational influence 23

5.3.2 Identification influence 23

6 Recommendation 23

6.1 Change store layout 23

6.2 Active/Trial Activities 24

7 Conclusion 25

8 References 26

1 Executive summary

This report contains our findings about a range of consumer behavior concepts in the case ofAdidas Our report draws attention to Adidas X Parley – an eco-friendly product released to raiseawareness of environmental conservation, in which project reflects some of the related marketingstimuli accompanying with internal and external influences In this report, we will dispatch limitations

of this campaign and address some possible recommendations on how the company can augmenttheir performance in Vietnam local market

At the outset, the written treatise fleetingly summarized the profile of this company and anoverview of Adidas X Parley eco-friendly collection Their target customers identified as young adultsaged from 18 to 35 years old based on the company's capability, therefore reflect the way theycompete with other brands in the same industry such as Nike, Puma Plenty of stimuli are beingcollected from many sources such as outdoor activities “Run for the Oceans”, Facebook fanpage,Instagram, Youtube, print advertising, running apps, celebrities and participants’ posts, etc

Regarding internal influences, Adidas applied multiple theories into their marketing strategies

in significant sections The three concepts of Maslow’s hierarchy of needs are used to enhanceconsumer’s motivation to purchase the product The implications of attitude developed into the flow ofnew trends, applied new awareness for local consumers to adapt and Adidas has done it effectively,however, the recognition has not reached its peak

Furthermore, culture also plays an important role which affects customer's purchase behavior.Our paper evaluated the company's performance in collectivism, nature, and passive cultureindicators Adidas has partially succeeded in using cultural factors to grasp Vietnamese consumers’purchase intention but not completely effective in some parts Strategies learned from the course(operant conditioning, iconic rote, modeling, and reasoning) has been effectively applied toencourage the new trend of young demographic, hence, still need to modify local supermarketdisplays

More improvements need to be applied to the marketing strategy thus in this report we willemphasize the existing weaknesses of Adidas X Parley strategies in operant conditioning, behavioralcomponent, and passive culture value Several applicable recommendations on changing storelayout, organizing trial activities, etc will be provided in order to improve their performance in reachingmore consumers in sustainable consumption

2 Introduction

1.1 Nature of the company

Adidas, one of the leading sport manufacturers in the world, was founded by Adi Dassler in 1949

in Germany Adidas has worked with the environmental organization Parley for the Oceans since 2015 toprevent the pollution of marine plastic by creating products made from recycled ocean plastic waste, withthe aim of raising awareness for the threat of marine plastic pollution and propose solution using power

of sports (B & T Weekly 2018)

1.2 Key services/ products

Adidas x Parley turns marine plastic waste into high performance products help spread awarenessfor the beauty of the ocean In addition to sustainability practice, Adidas expanded a new line of Parley x Adidas Outdoor footwear and apparel in 2018, including collection of Terrex, Two, Agravic and Boat As aresult of the expansion of the product using recycled ocean plastic waste, Adidas produced over five million pairs of shoes and two million pieces of apparel using Parley Ocean plastic, according to adidas annual report 2018 (Adidas 2018) Shoe is the first product and the most popular line of the brand

partnership with Parley for the Oceans with the well-known collections are UltraBoost 4.0 x Parley in

2018, and most recently Alphabounce Parley (Hong Dung 2019)

1.4 Market share/sales

According to Passport, the top sportwear brands are Adidas, Converse, Puma and Nike Adidas becomes the top of mind brand due to its strong distribution network, effective marketing and promotionalactivities, and high performance products Moreover, Adidas Parley collection shows the sustainability efforts, leading to the dominant top of mind brands in sportwear segment

The chart shows the revenue in the sportwear segment in Vietnam increases over years and isforecasted to reach nearly 15 thousand billion in 2023 Therefore, Adidas collaboration with Parley for theOceans possibly continue to sell more products

1.5 Primary target market

As the growth of environmental awareness among youth community, Adidas engaged them to change their daily habits of using plastic in order to save the ocean (Adidas 2019) and partner with Parley to host Run for the Oceans project which challenges runners from around the world to raise money for Parley education Overall, Adidas Parley target customers are young adults (18-35 years old), have active lifestyle and high awareness of green consumption

1.6 Positioning map

Positioning map for Adidas x Parley include two attributes: recycled material and comfort Most sportwear brands nowadays using recycled materials to reduce their impacts on the planet as they noticethe overall pollution levels increase strongly Comfort is one of the crucial factor that influence people in purchasing athletic shoes (Lyons, Robert, Jr., Jackson, E Newton, Jr & Singleton-Jackson, Annette 2011)

3 Stimuli of the brand/product/store

3.1 Print advertising

Stimulus 1 Adidas Ultraboost Parley scanned banners at Quy Nhon beach <Adidas 2018>

Stimulus 2 Scanned advertiser in Adidas store

3.2 TV Advertising

Stimulus 3 Adidas “Run for the Oceans” Video Ads on Youtube <8/2018>.

Stimulus 4 Adidas Parley Campaign Ads from 2016 – 2017 – 2018 <Youtube.com >

Adidas started this campaign since 2015 and reached its peak in 2018 when the world started to

recognized this product.

Stimulus 5: Adidas x Parley video advertising content (Danielle Long, 2018)

3.3 Outdoor Advertising, Events

Stimulus 6: Adidas created Running campaign outdoor in Quy Nhon, 200 runners successfully

funded 800USD for Ocean Conservation (thethao247 2019

Stimulus 7 An event “Chay vi Dai Duong” occasioned at Long Hai Beach 2018

Stimulus 12 Adidas Facebook post featuring football manager Zidane supporting Adidas x Parley

campaign

Stimulus 13 Adidas x Parley online website

Adidas x Parley has effectively used various types of stimuli in advertising for “Run for the Ocean” campaign The most effective stimuli can be considered facebook posts featuring KOL such

as Phan Anh, Diem My and famous sport superstars, which have great effect in attracting customers participating running events However, Adidas x Parley has few print advertisings or even none POP displays in stores Moreover, the banners at event are brought from global campaign, which should

be modified into Vietnamese version to reach more customers

BOOST sole technology to ensure sustainable development of product’s quality (Arjun, 2018)

Therefore, it has ensured the positive reinforcement with the result of several positive reviews published from YouTube bloggers to large newspapers such as business insider, runnerclick, etc and

sold 1 million shoes in 2017 (Arjun 2018) Furthermore, Adidas also “added” reinforcement by rewards that adding a preferential package to customers if they bring their used shoes back to the

store so they are properly recycled and reusable However, the stores in Vietnam do not contain

pleasant store layout and atmosphere to attract the customer at first sight (Figure 1)

Figure 1 : Store layout

4.1.2 Cognitive learning

Iconic rote learning/Modelling

Adidas made a top-motion promotional video to tell the creative story of the Ultra Boost Parley

shoe by using animated embroidery on the shoe's unique woven fabric With impressive and

repetitive advertising, Adidas delivers content about the life cycle story of Parley shoes and eco-

friendly products (Stimulus 5)

Adidas also took advantage of the Adidas running community and worked with them to create

a movement that caught the attention of global audiences on a striking work that visually conveyed

the new message, running shoes Customers tend to adjust their behavior by observing other’s behavior Thus, the cast Diem My and Phan Anh participated in Adidas' ocean run competition and

inspired everyone (Stimulus 9) The campaign was effective when the community of running

enthusiasts in Vietnam contributed more than 1,000km, equivalent to 1,000 USD to the campaign to protect the marine environment (Tung Nhan 2018) Additionally, Adidas has effectively applied the

celebrity endorsement with KOL advertising strategy based on the actions of celebrities who are actors or influencer with high awareness and follow, which helped increase coverage, brand identity and reach new potential customers As a result, the official Facebook channel of adidas in Vietnam has reached 1 million fans and is among the top 15 brands with the largest fan base in Vietnam (Socialbakers.com 2018)

4.2 Motivation

4.2.1 Safety need

It is the fact that consumers are motivated by products that bring them both physical and psychological safety Product safety for customers is a must at Adidas They manage risks related to defective products that can effectively injure consumers One of the typical policies is to apply

chemical product compliance and safety standards to all brands of the company

Knowing the world's trends are geared towards environmentally friendly products and human safety needs, Adidas Parley has implemented strategies to build a quality brand image with the protection of customers' safety on social media Adidas has launched videos about telling the story

of shoes made from ocean plastic products but still ensuring quality have generated positive views of customers towards Adidas products The sponsorship of major sports tournaments also confirms the

reliability and quality of Adidas products (Stimulus 6,7)

4.2.2.Self- esteem needs

Most people have a need for respect, power, prestige and status, which has decisive meaning

in the purchase of customers People tend to change their behavior according to the crowd or famousand influential celebrities in society As living green is becoming a trendy lifestyle in Vietnam

(Vietnamplus 2019), when customers consume environmentally friendly products, they will be

perceived with more positive images and more respected in society

Adidas has successfully understood consumers‘s self-esteem need Famous sports

superstars have been featured on Facebook fanpage to make a positive impact and encourage

consumers to buy Adidas products (Stimulus 10,11) Along with that is the collaboration with Parley

organization to create shoes from ocean waste which convey a strong message and encourage

consumers to buy their products and contribute to protect the ocean The environmental running strategy was also launched by Adidas and strongly influenced the community of environmental and

sports lovers around the world (Stimulus 6,7)

4.2.3 Self- actualization

Self-actualization needs are considered to be the highest needs in the Maslow scale, which is the desire to achieve, to make the potential of an individual reach the maximum level and accomplish certain goals This need includes the need for awareness, aesthetics, and fulfill their goals with all their abilities

The highest demand of the user is self actualization Understand self-actualization need, Adidas x Parley has effectively told its product stories to consumers through short videos, promoting the consumer habit of environmentally responsible shopping Corporate social responsibility of Adidas

is one of the factors that make this brand become prestigious in customers Hundreds of millions of plastic bottles will be brought back to life with useful shoes instead of falling to the sea floor Realizingthe social values Adidas x Parley and with highly awareness of protecting the environment, customer are more eager to purchase Adidas x Parley products

4.3 Attitude

4.3.1 Cognitive

Adidas x Parley is a revolutionary collection which designed to give customers all the comfortand support their runs need, with tuned forging and an optimized fit (Adidas 2019) yet retain thepurpose of reducing the expansion of marine plastic Recently, consumers also refer environmentallyfriendly to this brand due to their effort in alleviating plastic waste into the ocean (Vnexpress.net2019), plenty of positive response can be seen in social media related to this eco-product (Figure 2)

Figure 2: Positive comments

Through online platforms, Adidas aimed at adding new beliefs in seeking a suitable shoe,high-performance footwear can be either fashionable and environmentally friendly Since sustainable