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 each year and earn revenues that exceed 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

Website: www.adidas.com

Adidas Fun Fact : Adolf named his company Adidas after his own name, blending Adi (a nickname for Adolf) and the first part of his last name, Das(sler). … 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, 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 that include Reebok, Adidas, and Rockport, as well as Taylor specifically for various segment of customer segments.

Adidas employs a distinct targeted approach to focus on young adults adults, young adults, and youngsters who are passionate about fitness and sports. While it targets people in the 13-40 age bracket, years, its majority of customers are 15-30 years old of age, who 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 the potential consumer. By highlighting the importance of premium products that are backed by a reputable brand, Adidas can keep its brand’s essence. The portfolio is categorized according to.

  • They are able to boast Adidasperformance 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 the distribution network as well as its product’s quality along with its brand’s reputation. It has around 2400 stores worldwide with $4.3 billion in business (2014 information). To align itself with the community, Adidas has been a sponsor for many international sports events like FIFA, UEFA, NBA, Cricket & Olympics. In addition in the past, Adidas has proven its top-quality products on the market that are always comfy, above and beyond the norm, and durable.

The strong relationships with various 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 are taken by BCG. 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 as brands hold a substantial part of the market however they also face tough market competition in the fitness and sports segment is extremely high. Other brands such as Puma, and Nike are also fighting for a significant part of the market.

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

Distribution strategy in the Marketing strategy of Adidas  

As the current consumer environment gets more fluid and trends are rapidly evolving, Adidas is also increasing its efforts to anticipate these shifts and reacting with rapidity. They have aligned their sales strategy with the distribution strategy to facilitate and drive an increased consumer-centric Omnichannel – channel 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. In order to broaden their distribution network, they introduced their products via Exclusive Stores (franchise model) as well as Co-branded stores which purchase the product 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 own distinctive brand identity and position to life by constructing products and services which provide frameworks and platforms to build market share over time and profit growth.

Although Adidas and Reebok both have distinct identities, traditions, technologies, designs, and brands The strategic concepts and strategies for driving expansion in sales and improvement in profitability 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 segments of the market that are identified as strategic to help their group’s goal is 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 its position 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, E-commerce companies.

 Market Analysis in the Marketing strategy of Adidas  

Due to the existence of 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 is regular people professionals youngsters who aren’t afraid to switch to different brands due to the shifting competitive position that is being analyzed by players.

Industries are growing because of the changing lifestyle, economics of the population, and migration from Rural cities to rural areas, but at the same time, the demand and supply insufficiently matched with inactive inventory are 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. In order to be successful across the different segments of the market, Adidas acknowledged that a strategy of mass production or mass marketing is no longer enough.

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

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