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Introduction
Introduction
ADIDAS
all Day I Dream About Sports
Adidas marketing strategies is aimed at being the top sports brand in all over the
universe. It plans to do this by ensuring that the athletes are faster, stronger, cooler,
natural and stronger. Its other strategy is creating new customer experiences through
training and then increasing global footprint.
Products
-The core benefit is to satisfy consumers needs or want.
-Caters for different needs and wants of consumer
-Uphold its brand by constantly upgrading and improving products innovative features and
quality to satisfy its customers.
-Today, Adidas has established itself as a strong brand for sports apparels Price
Place
-Distributing some of the Adidas products to the various sporting outlets
-Adidas outlets
-Online purchasing through the internet Promotion
-Promotion objective
Become the NO.1 sporting brand in the world.
Promotion Mix
-Advertising commonly through the mass media
-Through the use of the internet and SNS
-Point of Sale
-Impossible is Nothing campaign
Five Forces Analysis Threat of New Entrants:
Very high barriers of entry in to the market
High cost
Legal Barriers
Control of Market (Market leaders benefiting from economies of scale
Brand establishment Threat of substitute products
Other manufacturers selling similar good at low prices
Uniqueness/ Technology Bargaining power of customers
Bulk means less price Bargaining power of suppliers
Low control of suppliers on cost price because of large number of factories willing to
manufacture Intensity of competitive rivalry
High levels of competition
Competition for market share
Nike holds 36% of Market share
Adidas holds 21% of Market share
Adidas must ensure high quality and unique at reasonable prices Adidas SWOT Analysis Adidas
SWOT Analysis
Strengths:
Adidas is the world's second largest producer of sport apparel and equipment by sales with
revenues of $15,333.30 million in the 1st qt Adidas leading market position is built on its
positioning of strong brands, which enhances adidas market standpoint and boosts its topline:
1) Adidas 2) Reebok 3)TaylorMade 4) Rockport 5) Ashworth
Adidas portion of own retail has grown substantially giving adidas more brand control
Operates over 2200 stores for adidas and reebok internationally
Large geographical foot print in diverse markets enables adidas to expand its markets to high
growth economies
Weaknesses:
China negatively impacted by clearance of high excess inventories following the Beijing 2008
Olympic Games which subdued consumer demand in 2009
adidas outsources 95% of production to independent thirdparty suppliers in Asia, including 32%
from China
Merchandise procured from foreign manufacturers is a weakness because it gives adidas less
control over the product quality.
Vendor and manufacturer failures to achieve and maintain high manufacturing standards could
result in manufacturing errors resulting in: Product recalls, Delays of Production Adidas SWOT
Analysis
Opportunites
Adidas has sponsorship agreements for major sports events across the world:
1)Japan Football Association until March 2015.
2)Australian Olympic Committee until 2016.
3)Secured sponsorship rights to the 2014 FIFA World Cup.
Sponsorship of major sports events helps the company strengthen its profitability and enhance its
brand recall among consumers Adidas SWOT Analysis
Threats:
Widespread counterfeits deprive revenues for the company and can dilute the adidas brand image
The market for sports apparel and footwear has declined in 2009Athletic footwear declined 3.2%
in 2008 & 1.4% in 2009
Other Manufactures for example: Puma, Nike, etc.
Celebrities Marketing Adidas comes at us with a great new commercial to represent the
brand. Staring the likes of B.o.B, Katy Perry, David Beckham, Dwight Howard and Derrick Rose
among others. Adidas motto to go along with the visual, "Heart over head. Inclusion over ego.
United by passion, we go all in. Go all in." The new spot also features Big Sean, Chicago Bulls
player Derrick Rose, Sky Ferreira, K-Pop group 2NE1 and Kids. These Days all sporting their
own creative and hipster get-up. Adidas has been linked to hip-hop ever since Queens MCs Run-
DMC rapped about ''My Addidas,'' and now the sport wear brand have made female rapping
superstar Nicki Minaj star in their latest Originals commercial. Also Justin Bieber Signs with
adidas NEO Impossible is nothing ! -Focus on the global major and sport life style markets
-Impossible is Nothing
-Three different categories of adidas strategies: adidas products divisions, distribution, and
pricing strategies. ADIDAS MARKETING STRATEGIES