Marketing strategy of Adidas

Marketing strategy Of Adidas: Adidas employs over 62,285 employees across more than 160 countries. They create over 660 million merchandise units annually and earn revenues exceeding EUR 14.5 billion (all numbers are from 2020). These figures alone could indicate it is the case that Adidas Group is quite a complicated company. True. However, they make things simple, light, and quick.

Did You Know About Adidas?

Company: Adidas

CEO: Kasper Rørsted

Founder: Adolf Dassler

Year founded: 18 August 1949

Headquarters: Herzogenaurach, Germany

Annual Revenue (FY2020): 2,191.5 crores EUR

Profit | Net income (FY2020): 170.2 crores EUR

Products & Services: Sports Apparel | Football Boots | Basketball Shoes | Running Shoes | Sports Bags | Glasses | Hats | Headbands, and Wristbands | Hoodies | Yoga Pants | Shorts, T-Shirts | Jackets

Competitors: Nike | Puma | Under Armour | Callaway Golf | Fila | Converse | New Balance | ASICS | Lululemon Athletica | VFC | Victoria Secrets


Adidas Fun Fact: Adolf named his company Adidas after his name, blending Adi (a nickname for Adolf) and the first part of his last name, Das(seller). Since at least the 1970s, people have been claiming the name Adidas is an acronym taken from the initials of All Day I Dream About Soccer or Sports.

Marketing strategy Of Adidas - AG

 Segmentation, Targeting, and Positioning in the Marketing Strategy of Adidas  

The largest sportswear manufacturer in Europe and one of the largest around the globe, Adidas is segmented by demographic, psychographic, and behavioral aspects. The Adidas group includes four brands within its impressive portfolio: Reebok, Adidas, and Rockport, as well as Taylor, specifically for various customer segments.

Adidas employs a distinct targeted approach to focus on young adults, young adults, and youngsters passionate about fitness and sports. While it targets people in the 13-40 age bracket, its majority of customers are 15-30 years old and are from the middle class or upper class of its customers.

Benefit and user-based position are the methods Adidas uses to establish a distinctive impression in the minds of potential consumers. Adidas can keep its essence by highlighting the importance of premium products that a reputable brand backs. The portfolio is categorized according to.

  • They can boast performance in Competitive sports. ability in competitive sports,
  • Reebok & Reebok classics in active sports and casual sports, and
  • Adidas originals, Adidas Fun, Rockport in Sports fashion.

 Mission in the Marketing Strategy of Adidas  

“The Adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position”.

Adidas Tagline

  “Impossible is Nothing”. This is one of the most famous taglines by the company. This tagline, which showcases the importance of fitness and the importance of striving hard for anything you desire, is one of the biggest assets the company has and possibly summarises the marketing strategy of Adidas.

Competitive Advantage in the Marketing Strategy of Adidas  

One of the main competitive advantages Adidas can boast is its distribution network, product quality, and brand reputation. It has around 2400 stores worldwide with $4.3 billion in business (2014 information). Adidas has sponsored many international sports events to align itself with the community, such as FIFA, UEFA, NBA, Cricket & Olympics. In addition, in the past, Adidas has proven its top-quality products that are always comfy, above and beyond the norm, and durable.

The strong relationships with organizations like the International Labor Organization and International Finance Corporation have helped the company stand out from competitors to ensure a long-term sustainable business.

 BCG Matrix in the Marketing Strategy of Adidas  

BCG Matrix aids in determining the strategic positioning and future direction of action that BCG takes. It also helps identify the strategic position and future course of action for SBUs (strategic business units).

Adidas owns four brands as part of the umbrella of the Adidas group, which include:

Adidas & Reebok are the top brands, and both brands hold a substantial part of the market; however, they also face tough market competition in the fitness and sports segment. Other brands, such as Puma and Nike, also fight for a significant part of the market.

Rockport & Taylor made an appearance in a question mark. This is because the market shares of these brands are small. However, there is plenty of chance to grow these companies. However, when this potential will substantially benefit the company remains to be determined.

Distribution strategy in the Marketing strategy of Adidas  

As the current consumer environment gets more fluid and trends rapidly evolve, Adidas is also increasing its efforts to anticipate these shifts and react rapidly. They have aligned their sales and distribution strategies to facilitate and drive an increased consumer-centric Omnichannelchannel mentality.

After analyzing the purchasing procedure of their customers, They concluded that interaction with customers and the ease of access, convenience, and size of products play a significant aspect in a successful delivery method. To broaden their distribution network, they introduced their products via Exclusive Stores (franchise model) and Co-branded stores, which purchase products directly from C & N and distributors.

Brand equity in the Marketing strategy of Adidas  

Activities geared towards sports that are primarily based on social media and community connect programs have helped Adidas to become one of the leading athletes in the world of sportswear. Each brand and subbrand is responsible for bringing its distinctive brand identity and position to life by constructing products and services that provide frameworks and platforms to build market share over time and profit growth.

Although Adidas and Reebok have distinct identities, traditions, technologies, designs, and brands, The strategic concepts and strategies for driving sales expansion and profitability improvement are the same for both.

 Competitive analysis in the Marketing strategy of Adidas  

Adidas Group’s diverse branding portfolio provides them with a significant competitive edge. Through their portfolio of brands, they cover all the market segments identified as strategic to help their group’s goal to inspire and motivate individuals to tap into the power of sports in their lives.

Adidas is prospering due to its distinctive positioning. However, Reebok, the company that owns Adidas, has been trying for years to improve its position; however, it is slipping.

Large companies such as Nike & Adidas have grown exponentially over the last two decades. Their reach is expanding across all continents. This is due to the changing lifestyles of emerging economies and the development of the Internet and e-commerce companies.

 Market Analysis in the Marketing Strategy of Adidas  

Due to counterfeit goods and customer bargaining power, it’s extremely difficult for these companies to survive in the market. Although the product offerings are designed for people who play sports, the majority portion of their customers are regular people, professionals, and youngsters who aren’t afraid to switch to different brands due to the shifting competitive position that players are analyzing.

Industries are growing because of the changing lifestyle, economics of the population, and migration from Rural cities to rural areas. Still, at the same time, the demand and supply are insufficiently matched with inactive inventory resulting in lower margins for companies in this sector.

 Customer Analysis in the Marketing Strategy of Adidas  

Adidas customers are comprised of upper and middle social classes. To succeed across the different market segments, Adidas acknowledged that a strategy of mass production or mass marketing is no longer enough.

Identifying and understanding consumers’ motivations and objectives for playing exercise as well as their lifestyle, fitness level, the place they play, and their purchasing habits can create valuable products, services, and experiences that leave an impression that lasts and trust in the brand.

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