Marketing strategy: Case Adidas

Thèmes abordés

Marketing objectives, PESTEL, competition analysis, Porter five forces, Portfolio analysis, SWOT, consumer bahavior, STP, 7 P's

Résumé du document

In a globalized environment, where the competition has never been so intense, sportswear firm Adidas aims to become the leader in the sports footwear market.

In order to reach this goal, this group focuses on the marketing campaign, which reflects the company's culture and passion with respect to technology.
The company, under these two entities, positions and differentiates itself on two growing segments:
-Performance shoes: This segment was created for athletic consumers and technology employed by Adidas has helped people passionate about sports to reach their goals.

-Fashionable shoes: The range of products under this segment has been developed for non-athletic consumers, in order to compete with Nike, which is the leader in the footwear market.
With 465 products, from the entry-level to professional shoes, distributed in five continents, Adidas enjoys significant brand awareness and an enormous sales force. Combined with numerous celebrity endorsement contracts, such as those featuring David Beckham or the All Blacks, the company has a strong communication force.
Nevertheless, the sales of high commodity prices and the increase of raw material prices, associated with the current exchange rate between Europe and the US are some of the weaknesses for the firm.

Moreover, a decrease of profit by 10%, a raise of operating expenditures during 2008 to 2009 due to Reebok's acquisition in 2005 and a decline of capital, represents some threats to the brand on the financial side.

Finally, with the help of current tendencies of well being and good-health in Occidental societies (which is gradually spreading to emerging markets), Adidas must perform a series of activities that will act as a medium for this group to become the leader in the sports footwear market. This group believes in the motto “Impossible is nothing”.

Adidas is one of the most important companies in the global sportswear market. With €10,381 million in turnover and €508 million of operating margin in 2009, Adidas has a strong position among the richer companies of the world and is present in the DAX-30 (a blue chip stock market index consisting of the 30 major German companies) stock exchange.

Adidas's footwear strategy is clearly established and its marketing department is very efficient and this makes it easier for studying the marketing aspect of the firm. In addition, we agree with the positive ideas the group promotes, such as encouraging people to stay fit, to play, to look fashionable and so on.

The three-stripes firm's footwear enjoys large brand awareness, is present in five continents and is the leading player in the market for football boots. The company was the official sponsor of the FIFA cup in 2010 and has signed numerous endorsement contracts with stars such as David Beckham, Lionel Messi, etc.
Much information is available concerning the group's sports footwear tactic with respect to marketing strategy, financial analysis, etc. The official website of the Adidas group contains plenty of data about the financial reports and the official strategy.

Tags: Sportswear market, Adidas marketing strategy, Adidas global positioning

Extraits

[...] Marketing strategy Case Adidas Executive summary In a globalized environment, where the competition has never been so intense, Adidas aims to become the leader in the footwear market. In order to reach this goal, the three bands firm focuses its marketing campaign, which reflects the company's culture, on passion on technology. The company, thanks to these two entities, positions and differentiates itself on 2 growing segments: - Performance shoes: This segment was created for athletic consumers. Thanks to Adidas' technology, passionate people can now transcend their limits. [...]

[...] Adidas has to deal with the counterfeit of Adidas footwear products. Competition analysis The competition on the sport footwear has become really aggressive because of many reasons. Nowadays, many people do sports because of the care about well being but also because sports brands have become social symbols that permit to people to distinguish from the others and show their membership in a social group much as for making sport in itself. Consequently, competition on the sport footwear market increase dramatically with the idea of making everything to make your best competitor has a bad image in front of customers and to prove that your brand is the best by all means, we can even talk in some case about unfair competition. [...]

[...] Every product has different version: when a product ends its life cycle the company re-launches it. Adidas footwear is the core product of the brand since 1924. The footwear is well-known thanks to the innovative image of the brand and its quality. Most of the athletes are using Adidas shoes. The brand is easily recognized thanks to its three horizontal stripes. The company has a very good reputation and a strong brand strategy. Adidas is the second market leader after Nike. [...]

[...] They are doing international advertising campaigns to reach the largest number of people such as “IMPOSSIBLE IS NOTHING”. To keep an image of quality, Adidas is using the product placement strategy by signing endorsement contract with celebrities such as David Beckham, Anna Kournikova, Kobe Bryant and Daft Punk. To continue building its brand image Adidas is sponsoring sports events all over the world in every sport. The company is for example the official supplier of the FIFA World Cup, the National Basketball Association (NBA) and also the rugby team: The All Black. [...]

[...] It can be seen by the way they are so appreciated and recognized by the sport community, as shown by the numerous athletes in every kind of sports who wear Adidas. This can be explained because Adidas puts huge efforts and money to manufacture sport shoes which can perfectly suit to every kind of sport and helps the athlete to give its best because of its shoes. They invest a lot in innovation in order to always renew and improve their shoes, like the shoe named which is completely revolutionary has its as electronic components. This segment is oriented as its name suggests to performance. [...]