Adidas's strategies for the UK and Europe
"The Adidas Group has its headquarters at Germany with more than 2600 employees. Many of the company's innovative products are manufactured at their research centers in Germany and Portland. The Adidas brand has many ranges of footwear like Sport Performance, Originals and Sport Style.
Adidas strategies are based on endorsement with focus on strategy, advertising, sponsorship programs focusing on major global events, sports associations and teams; While Nike has centered its brand equity model on the platforms, the endorsement focus strategy, creating a dominant media presence and development of flagship stores.
Sport stars play an important role in promoting any brand as it creates an identity. In its pursuit of overtaking Nike, Adidas roped in the famous football star Lionel Messi recently. Also, for the first time the three stripe logo brand's separate lines was advertised with stars like David Beckham, Argentinean football star Lionel Messi, British heptathlete Jessica Ennis, tennis player Andy Murray and NBA star Derrick Rose and pop singer Katy Perry in a TV Commercial. This ?All Adidas ?campaign is planned to run throughout the year 2011 in all its Ad Campaigns, sponsored events and shows.
The German sportswear brand is second in the UK market today with 15 % market share as compared to its arch rival brand Nike with 18 % share in the £4.3bn sportswear market. In its Route 2015 strategy with an aim to achieve its goal the brand is hoping that its status as official sportswear partner of the 2012 Olympic Games in London will help greatly. A noteworthy mention here is that the brand during 1960 Olympic Games at Rome had 75% of all the track and field athletes in Adidas sports gear and also the Adidas wearing sportsmen dominated the 1968 Olympics in Mexico. In continuation of the rich history of Adidas in Olympics, it plans kitting the athletes in 25 of the 26 Olympic sports.
Adidas is also the Games' official clothing licensee and as a part of their social responsibility, it plans to make environmental ? friendly manufacturing in clothing. It hopes to generate a sales target of £100m form its clothing line in Olympics next year.
The huge marketing expenditure is sure of bringing them the desired results but the competition from Nike is no lesser, hence it remains to be seen which brand outperforms the other in the race.