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Marketing strategy: Case Adidas

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  1. Introduction
    1. Why did we choose this firm for our presentation?
    2. The history & the brand
  2. Environment
    1. Context
    2. Aims
    3. Marketing objectives
  3. Contextual analysis
    1. The market
    2. PESTEL analysis
    3. Competition analysis
    4. Porter's five forces (including generic one)
    5. Portfolio analysis
    6. Strategic Business Units
    7. SWOT
  4. Marketing strategy
    1. Consumer behavior
    2. Segmentation
    3. Targeting
  5. Financial Statement
  6. Recommendations and conclusions

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

[...] That means the Some accusations have been leveled at the Adidas product portfolio features brand regarding poor working conditions the best shoes on this market. in Adidas' Asian factories. In order to be more efficient in sales strategy, the concept of management is undertaken on a very serious level. Adidas offers a wide range of footwear products online. Resounding success in Europe which allowed the brand to raise its objectives. As Adidas acquired Reebok, it hopes to be well positioned in the women's athletic shoes market in the US as Reebok had been the leader. [...]

[...] Marketing objectives Adidas wants to shore up its leadership in Europe and its shares in the US footwear market. It also plans to be a high volume performer like Nike which is the current leader in this segment. To compete with Nike, Adidas needs to constantly strive to maintain and increase its strength with respect to its position in the sports footwear and apparel market. It has to imitate the competition with respect to the brand's strength, uniqueness and at the same time, innovate in order to be different. [...]

[...] The Sport Performance segment generated the following sales revenues: Figures( in millions 2009 Training 149.8 Football 141.2 Running 62.1 Swimming 22.9 Outdoor 16.2 Other 50.0 Performance sales revenue 442.2 The sales revenues of each sport[6] Promotion Adidas is known worldwide and its target market may correspond to a mass marketing strategy. The firm already enjoys a strong reputation in the footwear market which is quite saturated. Adidas has to implement a strategy aimed at retaining its current customers and attracting new ones by understanding their needs. [...]

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