Choosing a Positioning & Differentiation Strategy

Adidas has developed a number of highly innovative products and has also collaborated with
high profile fashion designers to create sportswear that is both functional and fashionable 
The differentiating and positioning task consist of three steps:

1) Identifying Possible Value Differences and Competitive Advantage:

 Product differentiation: Adidas has been able to maintain a competitive edge

through product differentiation. Not only does Adidas offer clothes for the
runner who needs new workout gear for their upcoming marathon but they also
offer top of the line clothing for the fashion-forward person who wants to turn
heads at the next social event they attend. One of the biggest reasons that their
product differentiation is so profound is that even though their products are high
quality, they actually price lower than Nike.
 Channel Differentiation: Adidas has gained a competitive advantage through the
way they design their channels coverage, expertise and performance. Adidas
maintains their Facebook and Twitter pages very carefully and offer a number of
online stores in every country they have an outlet in. They also offer worldwide
shipping to countries that don’t have access to their products. Adidas also made
TV and other advertising campaigns to access their customers.
 People Differentiation: At adidas, every job is a creative job. Creators don’t just
design shoes. They work with numbers and spreadsheets, lines of code, and
annual reports. They sit in boardrooms, manage departments and run factory
floors.
 Image Differentiation: Adidas does not shy away from creating an image for its
brand. Over the years adidas has sponsored many celebrities to build an image
to show customers their product’s distinctive benefits. One of the major
celebrities they have partnered with is Kanye west, which has boosted their
brand image over the course of two years. They also sponsor Olympic games,
FIFA world cup and different players to showcase their brand image.

2) Choosing the Right Competitive Advantages:

 How many differences to promote:
“The Adidas Group strives to be the global leader in the sporting goods industry
with brands built on a passion for sports and a sporting lifestyle. We are
committed to continuously strengthening our brands and products to improve
our competitive position”.
Adidas does not focus on using the unique selling proposition (USP) rather it
positions itself on more than one differentiator. This is necessary for their brand
 because they are competing with more than one brand which claims to provide
the same attributes as they do. Nike, Puma and New balance all three of these
brands promise similar attributes which is why adidas chooses to focus on
promoting more than one differentiator.
Adidas claims that they want to be the global leader or the best at sporting
goods industry with the balance of fashion and sports. They also promise on
improving their brand over time and bringing new innovations into the market to
maintain their competitive position. By promoting more than one differentiator
Adidas is appealing to more segments in the market.

 Which differences to promote:

 Important: Adidas focuses on promoting itself as a sports brand which

delivers a highly valued benefit to target buyers.
 Distinctive: It focuses more on promoting its brand through soccer and
golf while Nike leans towards basketball.
 Superior:  Most of its ads and promotional campaigns are based on
themes of energy, motion and acceleration.
 Communicable: Adidas has differentiated its purpose from rivals like Nike
and Puma through focusing more on sports and being vocal about it.
 Preemptive: Many have tried to copy the adidas brand but the image
adidas has created over the years has become so powerful and distinct
that no new brand can compete against it.
 Affordable: The brand uses a high/low pricing strategy so that it can
reach to all of its customers.
3) Selecting an Overall Positioning Strategy:
Adidas positions themselves as a leading sportswear brand – focusing on performance
enhancement and driven towards people who want to achieve success and goal attainment as
inspiring athletes. Adidas introduced themselves with the tagline “Impossible is Nothing” vividly
summarizing the marketing strategy Adidas has adopted for their products. Highlighting the
importance of a healthy lifestyle and fitness, focusing more on an optimistic approach for goal
achievement on daily basis by claiming that there is no hindrance for the consumer to attain
their goals – creating a differentiated identity amongst their consumers.

Brand logos are the first perception of a consumer; customers wouldn’t be able to distinguish
between an Adidas, Nike or Puma shoe if the logos were to be removed. The Adidas logo itself
represents three parallel lines forming the shape of a mountain, referring to the challenges that
one might come across next at each stage of life and the drive to achieve such challenges for
goal attainment.
In 2016, Adidas put forward a new ‘Revolutionary three pillar strategy’ with a new slogan
‘Creating the New’. Which consists of the following factors: Speed (how they deliver), Cities
(where they deliver) and Open source (how they create). Collaboration between all three
choices will lead to a more customer focused and driven strategy, providing a competitive
advantage in the shoes industry.

The recent launch of Adidas’ Parley collection created a strong shared value brand strategy
between Adidas; it’s shareholders and the society, aligning all three together. The new
collection focuses on products made from recycled waste, transforming wastage into beautiful
running shoes. Such usage of sustainable materials portrays the Adidas group as friends and
caretakers of the environment.

Shoes Industry Perceptual Map

Performance

GAP

Price

Within the shoe industry, Adidas’s closet rival is Nike. Consumers buying behaviors are distinct,
taking into account two of the important factors: Price and Performance, Adidas could have an
opportunity to tap further into the market by introducing products that have low price and high
performance, as indicated by the gap in perceptual map. In doing so, customers will be engaged
in loyal relationships with the group, increasing the groups leverage and brand loyalty in the
marketplace.
References:

Hobbs, T., Roderick, L., Woollen, P., Vizard, S., Hemsley, S., Hammett, E., & Joy, S. (2016,
July 19). Adidas details 'revolutionary' three-pillar strategy as it aims to reclaim lost ground.
Retrieved from https://www.marketingweek.com/2016/07/19/adidas-details-revolutionary-three-
pillar-strategy-as-it-aims-to-reclaim-lost-ground/

Strategy. (n.d.).
Retrieved from https://www.adidas-group.com/en/group/strategy-overview/

Sandison, D. (2018, June 01). Adidas Is Trying to Take Over the Sneaker World Through Social
Media.
Retrieved from https://www.complex.com/sneakers/2016/07/adidas-is-trying-to-take-over-the-
sneaker-world-through-social-media

Hitesh Bhasin, (December 15, 2017), Marketing strategy of Adidas

Retrieved From https://www.marketing91.com/marketing-strategy-of-adidas/

Abhijeet Pratap, (June 15, 2017), Marketing and Branding Strategies of Adidas
Retrieved From https://www.cheshnotes.com/marketing-branding-strategies-adidas/

Adidas & Product differentiation, (October 28, 2017)

Retrieved from http://allaboutadidas101.blogspot.com/2017/10/adidas-product-
differentiation.html