Current Marketing Strategy
“Creating the New” is the headline for the next five-year strategic business plan. The sports industry is growing faster than most other industries and with the accelerated growth, Adidas plans to be ready with the latest trends. By following their “creating the new” strategy, they will focus on speed. Their goal with this factor is to become the first truly fast sport company. This entails satisfying consumer needs as they happen and not after. Cities is the second key factor in achieving the new strategy. After thorough research, Adidas will select six cities in which they see opportunity for further brand promotion in hopes that it will capture more market share. Last but not least, we have open source. Adidas is inviting and encouraging athletes, consumers, and partners to come together and full embody the brand as a whole.
Currently, Adidas embraces a multi-brand strategy because they believe their consumers deserve a choice. Their core brands include, Adidas, Reebok, and Taylormade. The Adidas brand is geared toward sports. They are most prominently known for their soccer cleats and warm up apparel, but also include a wide range of other sports. Reebok is focused on general fitness. Examples would include moderate running, going to the gym, crossfit, etc. Lastly, Taylormade specifically targets golf apparel, shoes, and accessories. Through their unique and diversified portfolio, they are able to cater to more needs and desires creating a cutting edge advantage over their competitors.
Cause-Related Marketing
Adidas takes pride in giving back to its community and does so with a passion. One of their own projects that they hold regularly is a “Kids Sports Fun Day”, where local underprivileged children participate in an exciting sports day at the company’s headquarters in Germany. Additionally, Adidas always does its part in aiding in disaster relief efforts. One of the many examples took place shortly after the 2010 Haiti earthquake. Adidas teamed up with soles4souls to raise money for rebuilding efforts.
Currently, Adidas is in cooperation with the Ginga Social Project in Brazil. Ginga social is a sport-based after school program implemented in 5 Brazilian cities with 1,500 children participating. They offer various team and individual sports, including soccer, volleyball, basketball, dance, and more depending on local demand. As part of the project, sport facilities are renovated and extended. In addition to the sporting activities, the program also provides advice on health, education, and nutrition for all members of the community. A recent study concluded that this social program proved to have a significant impact on the children’s self-esteem and sense of responsibility. Less aggression is shown toward other children and more respected is presented toward adults. To date, over 2,200 children and teens have directly benefited from the sports activities so far, and around 10,000 members of the community have benefited from the program as a whole. Following these successful results, Adidas plans to continue investing in this project and beginning new project in upcoming years.
Adidas: 4 P's
Products
Adidas is a sporting company that began with it’s focus on footwear but has broadened its reach to many types of sports apparel. They have four main subsidiaries.
Adidas has similar pricing strategies for all four subsidiaries. Adidas is at the top of their product category so they are able to enforce a competitive pricing strategy. They also use price skimming when introducing a new and innovative product. Because they are gearing the apparel toward upper middle class and middle class, they are able to charge a little bit more. These higher prices also add to the appearance of quality. Adidas does not use penetration pricing because they are working to maintain brand equity and preserve their superior image.
Promotion
Adidas promotes through social media, television, and product placement. They have a very active presence on twitter, instagram, and facebook. They are also interactive with their fan base on these platforms. They feature their logo in prominent sports arenas such as the World Cup, NBA, and Beijing Olympics. They have TV commercials that feature pop culture. These are usually fast paced and motivational. Adidas is known for its celebrity endorsements such as David Beckham, Selena Gomez, Katy Perry, Kanye, Kobe Bryant, and Kareem Abdul-Jabbar.
Placement
Adidas are sold at retail locations and exclusive adidas stores. The retail locations allow them to demonstrate the superiority of their brand in comparison to the competitors. The exclusive stores are usually found in urban locations. They are trying to maintain their competitive advantage by locating in big cities such as New York, London, Paris, and Tokyo.
Adidas is a sporting company that began with it’s focus on footwear but has broadened its reach to many types of sports apparel. They have four main subsidiaries.
- Adidas' main brand is focused on performance and style. They create sports apparel that is geared toward modern athletic individuals.
- Reebok is focused on fitness. They create products that will make people passionate about fitness and more likely to go to the gym.
- Rockport shoes were originally made as a comfortable alternative to athletic shoes. They have the style of traditional outdoor shoes, but the comfort of athletic shoes.
- TaylorMade is focused on enhancement. They create golf products that have both game-enhancing performance and fashion forward style.
Adidas has similar pricing strategies for all four subsidiaries. Adidas is at the top of their product category so they are able to enforce a competitive pricing strategy. They also use price skimming when introducing a new and innovative product. Because they are gearing the apparel toward upper middle class and middle class, they are able to charge a little bit more. These higher prices also add to the appearance of quality. Adidas does not use penetration pricing because they are working to maintain brand equity and preserve their superior image.
Promotion
Adidas promotes through social media, television, and product placement. They have a very active presence on twitter, instagram, and facebook. They are also interactive with their fan base on these platforms. They feature their logo in prominent sports arenas such as the World Cup, NBA, and Beijing Olympics. They have TV commercials that feature pop culture. These are usually fast paced and motivational. Adidas is known for its celebrity endorsements such as David Beckham, Selena Gomez, Katy Perry, Kanye, Kobe Bryant, and Kareem Abdul-Jabbar.
Placement
Adidas are sold at retail locations and exclusive adidas stores. The retail locations allow them to demonstrate the superiority of their brand in comparison to the competitors. The exclusive stores are usually found in urban locations. They are trying to maintain their competitive advantage by locating in big cities such as New York, London, Paris, and Tokyo.
Adidas: SWOT Analysis
Strengths
- One of the strengths of Adidas is the brand loyalty and heritage it holds in customers. Ever since 1949, Adidas has been building it's reputation based on it's quality and style.
- Diverse Portfolio: Ranging from soccer to basketball, running to training, Adidas boasts a wide range in footwear and accessories. Some of the subsidiaries include their brand (Adidas), which is the premium segment, Reebok which is their mid-range segment, and Taylormade which is a brand under Adidas which specializes in golf.
- Excellent celebrity endorsements: Vin Diesel, RUN-DMC, David Beckham, Kanye West, Katy Perry, Selena Gomez, and many others.
Weaknesses
High-brand switching - Stiff competition with Nike and Under Armour. Consumers can easily switch brands. In America specifically, Adidas ranks third behind them.
Outsourcing - Outsourcing Asia and other third-party manufacturers blur the lines between business ethics and law which make international business tricky.
Price - The premium prices leave out a consumer segment in lower-income families and those in developing countries.
Opportunities
Apparel for Women - Nike and Under Armour don't carry too much selection of their products to women and girls. Adidas can jump at the opportunity and release a line for girls who play sports therefore giving them an advatange over their competitors which is what they need.
Expanding to untapped markets- Adidas can also improve their marketing strategies by tapping into untapped markets like India, Asia, Africa, and the Middle East. One way in which Adidas can gain market share in the areas previously mentioned is by sponsoring local sporting events in these areas which would develop brand association with their targeted consumers
Threats
Highly intense competition: Other brands who produce sports equipment and accessories at a lower cost
Counterfeit Products: Look almost identical to the real thing at a more affordable price resulting in a loss of revenue. Counterfeit products also cheapen the brand.
High-brand switching - Stiff competition with Nike and Under Armour. Consumers can easily switch brands. In America specifically, Adidas ranks third behind them.
Outsourcing - Outsourcing Asia and other third-party manufacturers blur the lines between business ethics and law which make international business tricky.
Price - The premium prices leave out a consumer segment in lower-income families and those in developing countries.
Opportunities
Apparel for Women - Nike and Under Armour don't carry too much selection of their products to women and girls. Adidas can jump at the opportunity and release a line for girls who play sports therefore giving them an advatange over their competitors which is what they need.
Expanding to untapped markets- Adidas can also improve their marketing strategies by tapping into untapped markets like India, Asia, Africa, and the Middle East. One way in which Adidas can gain market share in the areas previously mentioned is by sponsoring local sporting events in these areas which would develop brand association with their targeted consumers
Threats
Highly intense competition: Other brands who produce sports equipment and accessories at a lower cost
Counterfeit Products: Look almost identical to the real thing at a more affordable price resulting in a loss of revenue. Counterfeit products also cheapen the brand.