Marketing Strategy of Adidas: Analytical Essay

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Marketing Strategy of Adidas: Analytical Essay

Introduction

Marketing is a social incentive by which people and gatherings get what they want and need through creating, offering and uninhibitedly trade items and administration of estimation of others, marketing is addressing the necessities beneficial both of advertisers and clients. The point of advertising is to know how and comprehend clients so well that the items or administration fits him and offer themselves.

Adidas is a multinational German company that designs & manufactures sports accessories. The group of Adidas consists of reebok Sportswear Company, Golf Company and Rockport.

Adidas has been the largest sports manufacturing company across the Europe and Germany and it is the 2nd biggest sportswear manufacturing company in the world. Including sports footwear Adidas also produces products like bags, eyewear, shirts, watches and other sports and clothing related goods.

I. Marketing strategy of Adidas:

Adidas employees more than 53,731 people to in 160 nations which produce more than 660 million item units yearly also produce offers for € 14.5 billion. These numbers can undoubtedly recommend that Adidas bunch is very much complex association. Anyway they keep things simple, incline also quick.

I. Positioning in the Marketing strategy of Adidas:

Most amazing sportswear producer of Europe & a standout amongst the greatest in the world, Adidas may be fragmented in view of demographic, psychographic & behavioural factors. Adidas has four brands done in its solid portfolio – Reebok, Adidas, Rockport & Taylor meant for different customers of different groups. Adidas make different targeting strategy to target young adults, as well as children who have more interest towards fitness & sports. Even though it targets customers of the age group of 13-40 years but most of its customers are of 15-30 years of age who are from upper middle class or the luxury class of customers.

User & benefit based positioning are the strategies Adidas uses to create important image of their customers. By showing the value and quality products from a trusted brand Adidas is always been able to maintain its brand essence.

The portfolio is divided as follows:-

The Adidas show performance in Competitive sports, Reebok & Reebok classics in Active sports & casual sports, &Adidas originals, Adidas Fun, Rockport in Sports fashion.

II. Mission in the Marketing strategy of Adidas

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

Tagline – “impossible is nothing”. This tagline is the most popular tagline by any company. The tagline, which shows the great importance towards fitness and importance of getting anything which we desire, is one of the biggest asset the company has, and which possibly summarises the marketing strategy of Adidas.

III. Competitive advantage in the Marketing strategy of Adidas

There are few competitive advantages that Adidas has is its distribution network, Moreover worldwide Adidas has minimum of 2400 stores accounting $4.3 billion business. In a way to associate itself with the community it has sponsored many world sport events such as FIFA, UEFA, NBA, and Cricket & Olympics. over these years Adidas is also known to produce and give the best products in this world which are always in comfort and long lasting.

IV. BCG Matrix in the Marketing strategy of Adidas

BCG matrix which helps to identify the strategic position & future course of the strategic business unit. Adidas has four brands under the Adidas group out of which: Adidas & Reebok are stars; these two individual brands have a very strong market share and at the same time the competition for the sports and fitness segment is very high. There are other brands like Puma, Nike also which fight for a large share of the market.

V. Distribution strategy in the Marketing strategy of Adidas

As the customer’s environment becomes more dynamic with trends quickly changing, Adidas is also then focuses on what satisfies the customers which are new trends in the market. After knowing the process of purchase from their customers, they reach to conclusion that the interactive experience with the customers and the availability, the size of the product which plays a major great role in a successful distribution strategy.

VI. Brand equity in the Marketing strategy of Adidas

Sports activities which is revolving around social media & community which connect programs has really helped Adidas to be the biggest players in the sportswear. Each brand and sub-brand is responsible for bringing its own different identity and positioning to life. While Adidas and Reebok they both have unique identities, heritages, technologies, designs and reputations, the principles and the methods for driving future sales growth and towards profitability improvements are common to both.

VII. Competitive analysis in the Marketing strategy of Adidas

The group of Adidas multi-brand gives them an important competitive advantage. Through the brand portfolio, the Adidas cover the sports and consumer choices which defined as important to support their Group’s ambition and inspire which brings people more closely towards sports. The Large companies like Nike & Adidas which have been growing rapidly over the last two decades. They have reached worldwide which expanded through all continents, which is to change the lifestyle of developing economies & emergence of Internet, E-commerce firms.

VIII. Market analysis in the Marketing strategy of Adidas

Due to the counterfeit products which are presented and also high bargaining power of customers it’s been really very difficult for these players to keep themselves alive in the market. Even though the offerings are meant for sports persons but most of the buyers are normal people professionals, children who are young don’t mind in switching to other brands due to the change in competitive positioning worked upon by the players. The Industry is developing due to change in lifestyle, economics of the population & shifting from Rural to urban areas but in the same time demand supply gets mismatch & idle inventory which results in lowering the margins of the players in this industry.

IX. Customer analysis in the Marketing strategy of Adidas

Adidas users consist of Upper-middle class social groups. To get successful from a consumer point of view, Adidas acknowledged that a strategy of mass production or mass marketing is no longer sufficient. By understand and identifying the consumer’s individual motivations and goals for doing sport, their fitness and lifestyle where they are doing sport and their buying habits will help them in creating meaningful products, services and experiences which builds a lasting impression and a loyalty for the brand.

II. Adidas increases sales and earnings guidance until 2020

· 2017 was a successful year for the Adidas group; Adidas is increasing its long-term guidance. The company has decided to accelerate sales and earnings growth until 2020 according to their long term business plan, ‘Creating the New’. The company now expects currency-neutral sales to increase at a rate between 10% and 12% on average per year between 2015 and 2020 (previously: to increase at a high-single-digit rate). Net income from continuing operations is projected to grow between 20% and 22% on average per year in the five-year period (previously: to increase by around 15% on average).

I. Company culture:

Moreover, developing Adidas’ Adidas has its own culture which plays a central role for the company and it helps in achieving its long-term goals until 2020. From the company’s point of view they set a belief that through sports the employees of Adidas have the power to change the lives. As per the developing plan until 2020, Adidas is mainly focusing its HR initiatives on leadership, talent development and performance management.

II. Speed:

Adidas is the fastest sports developing company and it has set itself as one of the best. There were key milestones achieved on the road to this goal in 2017. For example, in 2017, a pilot ‘speed factory’ was set up in ansbach (Germany) and mass production will commence in 2018. In addition, the second Adidas speed factory will open in Atlanta (USA). Altogether, in 2017, around 15% of total sales were generated with products manufactured on speed programmes. It is the company’s ambition to increase the share of ‘speed-enabled’ products to at least 50% of net sales by 2020.

III. Cities:

Moreover, the Adidas is now focusing its sales and marketing activities on six major centres: New York, Los Angeles, London, Paris, Shanghai and Tokyo. The average- above volumes of sporting goods is purchased there, and these big cities also play a very crucial role in developing trends, both nationally and internationally. In 2016, Adidas increased brand market share in all these cities. The company’s main aim is to make the double profit in these cities by the year 2020 compared to 2015.

III. Adidas scores big in sales and social media growth during the World Cup

During the World Cup, the Americas director of soccer, Ernesto Bruce, he had noted the 2014 FIFA World Cup was the ‘…largest marketing campaign in the history of Adidas soccer.’ While discussing Adidas social media, retail, marketing strategy, Bruce had made one thing clear: Adidas did not only expect that the teams and players it outfits to win on the field, but for the company to also win on the bottom line. Germanys 1-0 win over Argentina was more crucial moment because the players were mostly seen in Adidas which gave the Adidas more growth, both Germany and Argentina are Adidas federations. While debate has come out that throughout the World Cup which company would bring a greater impact in the market, one thing is certain, Adidas did experienced significant growth. In particular, four federations–Germany, Argentina, Colombia and Mexico–saw significant jersey sales growth.

From the Bruce point of view, Adidas has seen sales growth of 45-percent for 2014 over 2013 for Mexico’s jerseys. Bruce noted that it is significant, as retailers wanted to cancel the order from Adidas, when the team almost didn’t qualify for the World Cup. However, he noted that Adidas ‘kept being strong and never cancel the orders or stopped the production.’ To Bruce, the growth Mexico has seen in its jersey sales is attributed to its ‘fans still supporting the team, no matter what.’

In 2010 world cup Columbia was not the Adidas team, Adidas is really happy with the growth of its jersey sales. ‘Colombia had been a very huge surprise. We measure the sale by comparing the Columbia with the France which was a participant of 2010 world cup which is no more. We did sold 60% more Colombia jersey sales compared to France in 2010. France is an internationally superpower in the sport and Colombia is unknown, so for Colombians to come in and performing the way they did and sell 60-% more jerseys is huge,’ Bruce said.

While the Colombians and Mexican’s outperformed Adidas, expectations in jersey sales, both the countries Germany & Argentina setup up jersey sales numbers that had Adidas celebrating. From 2010, the sale has increased by 60% from Argentina’s side. If we get 20-percent growth, we would be very happy,’ Bruce noted. Adidas needs to be even more concerned over Germany’s jersey sales numbers. Bruce noted that Adidas is going to sell 70% of Germany’s jersey in the United States.” for Germany winning the finals is a great success for us. The records are really getting broken in terms of sales for Germany jerseys,’ Bruce said.

IV. Conclusion

By checking overall, I must conclude that a survey is really a good opinion to know more or to gather information from public like what they really think about it, I get to know all the necessary things which the public wished for, it brings out public attention and let me knows what the customer feels about the brand if they are really satisfied with the products or not and I get to know from what thinks we are running short of. So, survey really helps in completing the doubts.

By conducting a survey, I will get to know more about Adidas brand and get to know more accurate results from the customers, by proceeding this method it will let me know about customers satisfaction towards it which leads to increase in the sale and increase in profit.

V. Bibliography

Marketing strategies of adidas retrieved 1st January 2017 from https://www.google.ae/search?q=www.marketing91.com+%E2%80%BA+marketing+management+articles&rlz=1C1EJFA_enAE765AE765&oq=WWW.MARKETING91&aqs=chrome.2.0j69i57j0l2j5l2.7486j0j4&sourceid=chrome&ie=UTF-8
Strategies of Adidas retrieve 2nd January 2017 from https://www.adidas-group.com/en/group/strategy-overview/
Chosen cities by Adidas retrieve 3rd January 2017 from https://www.ispo.com/en/companies/id_79710992/new-marketing-strategy-adidas-is-focusing-on-chosen-cities.html
History of Adidas retrieve 3rd January 2017 from http://www.taylorsadidas.blogspot.ae//