Organization: Adidas (Multinational Sportswear Company)
Problem: Fallout from Terminating the Yeezy Partnership with Kanye West (Ye)
Timeline and Details:
- In October 2022, Adidas terminated its lucrative partnership with rapper and designer Kanye West (Ye) after he made a series of antisemitic and offensive remarks publicly.
- The Yeezy line, a collaboration between Adidas and Ye, had been one of the company's most profitable ventures. It generated billions in revenue and was a major driver of Adidas' brand popularity, especially among younger consumers.
Explain how the problem is derived from or translated to a marketing challenge (e.g., decline in sales, emergence of new competitors, launching a new product/brand, etc.). Describe the organization, the publics it communicates with, ownership (private, public or government), its environment, and the challenge itself. Provide detailed demonstration for your arguments.
Please follow the outline below (may be extended):
1. Background: a. The organization/company i. Industry ii. Product line and brands iii. Product and brand (or service, political candidate, social issue etc.). iv. Position (size, share, leader/follower) b. Target audience(s): i. Who are they? 1. Consumers (demographics, lifestyle, behavior)
2. Organizations (industries, size, position)
3. Investors ii. History of relationship with the organization (e.g., loyal and satisfied, disappointed, returning customers, non-users) c. The marketing environment: i. micro (customers, competition, suppliers, intermediaries) ii. macro (legal-political-regulatory, economic, socio-cultural, technological)
2. The marketing communication challenge. Describe the challenge comprehensively, including the following aspects: a. What is the challenge the company faced? b. How was it discovered? Who reported it? c. Level of severity? d. What parties were affected by this challenge (customers? partners?)