Introduction

-Business
-key terms
- tesis
Body 3 o 4
4 ideas
Advantages and limitations
Stakeholders conflicto and impact- success related to the comcept
Conclusion
Answer
Short term implications
Long term implicfations

ADIDAS
Adidas is a German multinational/business that specializes in selling products related to sporta like shoes,
sportwear and sport accessories. It was founded in 1949 by Adi Dassler. Currently is the biggest sporting
brand in Europe and second biggest in a global scale. Adidas prioritizes quality, designs, innovation,
sustainability, and social responsibility which are characteristics that have allowed the company to be well
known.
Change: refers to the adaptation of business objectives, strategies, and operations to accommodate changes.
Culture: Norms of an organizations, country or other social groups. (Values, belief and customs)
Ethics: socially accepted moral principles that guide decision-making, based on the collective belied of right
and wrong.
Globalization: worldwide movement toward economic, financial, trade and communication integration.
Strategy: a long term plan of an organization in order to meet business objectives
Innovation: refers to the changing or making more effective processes, products an ideas.

“To be the best world company in the world”

Strong competition with nike
59,0000 employees generates 23.64 billion in sales, diverse worforce with equal gende3r ratio, promote equity
and reduce gender disparity. Produce over 1.1 billion unit each year
Invest 152 million in research and development
Changes
1. 1967 Franz Beckenbauer tracksuit model first piece of apparel, whole new company
2. 1972 Change logo the trefoil wich stands for lifestyle and street.
3. 1986 Became a culture of hip hop due to a song of run DMC. – unexpected and unique partnerships-
merge of arts and sports. Birth of non-athletic promotion- beginning of street fashion trend.
4. 1989 Horst died, sister sold shares in 1990, name changed adidas AG, stock corporation” and change
in leadership and poor stratefic decision caused a record loss and almost cause bankruptcy
5. Louis Dreyfus (CEO) and Tourres, in 1993 figures that adidas didn’t need reinventation so it changes to
a market driven company
6. Expansion Arena building,- offering activity-based working spaces with a focus on flexibility and
communication:2019

Culture
1. 1986 Became essential in hip hop culture which means the fashion street wear trend
2. 2004 “impossible is nothing?
3. .hip hop culture
4. Staying healthy
5. creating multiple shoes and technology to do with sustainability, comfort, spedd, fashion, flexibility.
6. Promote diversity

Ethics
1. partnership with ocean conservation group Parley for the ocean-recycled shoes-increasingf conscern-
avoid to use plastic or unsustainable raw material.
2. Promote a healthy lifestyles
3. 2020 racial inequality, promote diversity an inclusion 120 million invewstment for 30% of new poswtiion
of black or latins- not satisfied.discriminatory working environment due to lack of diversity-damage
marketing campaigns Not only are the workers unable to organise to secure their rights, they are
effectively gagged from speaking out. Managers at Adidas’ Indonesian suppliers told workers they must
lie about their pay, hours and conditions during Adidas factory audits. At a factory in China a worker
was dismissed simply for telling an auditor they worked until 10pm on a daily basis. Trade unions are
essential to workers securing their basic rights, decent pay, working conditions and their fundamental
dignity. Through organising collectively they can assert their power and end this exploitation and abuse.
Adidas must stop the repression of trade unions throughout its supply chains and instead ensure a
positive environment for trade union organising.
4. Worker exploitation
5. Enhance the culture of sports
6.

Globalization
1. 1970 Partnership with important football association like the world cup
2. Hires employees across 100 nation
3. .work over 160 countries 2017 with 2400 stores
4. Sponsor many world wide sport events suc as FIFA, NBA
5. Their global reach has expanded through all continents, which is attributed to the changing lifestyle of
developing economies & emergence of Internet, E-commerce firms.
Innovation
1. Removable screw-in tuds on football shoes – in worldwide cup of 1954. Flexibility, lightweight, can be
adecuated in conditions´ field.
2. Official ball, TESLAR in 1970 for FIFA WOLRD CUP.
3. 1984 micropacer shoes, focus group, comfortable, fledxibility, security imapct and innovative but heavy
an know respiration for the feet.
4. 2000s first to introduce a new lifestyle segment, focusing on sport-inspired streetwear.
5. 2013 Energy boost riding shoes -Cushioning
6. 3D printed shoes soles
7. sustainable shoe created entirely form recuuled ocean plastics
8. uturecraft-dedicated initiative to innovate all elements of the production process for functional appearel
and footwear
9. innovation come from a need of the athletes

Strategy
1. 1968 Adi Dasler primary research, meat with athletes to receive feedback, to innovate and improve for
their needs,
2. 1993 Tourres y Dreyfus strategy of marketing driven company
3. 1997 acquisition to salomon group
4. Partnerships
5. 2004- memorable marketing campaign, biggest athletes face their fears, defeats and challenges to
improve that “impossible is nothing”- importance of fitness and importance of striving hard for anything
you desire,
6. 2011 campaign all in
7. 2015 five years strategic plan “creating the new” The strategy translates that competence in sports into
streetwear and fashion because sport is an attitude and a lifestyle. The company is working every day
to inspire and enable people to harness the power of sport in their lives. 3 strategic choices speed,
cities (NY, LA, shangai, tokio, London, Paris). Open sources wants to increase market share and gross
profit
8. Marketin a product placement have conytibuted to brand image, promote spirits of sports across the
world

2017
- segmented based on demographic, psychographic & behavioural factors. The Adidas group has four brands
in its strong portfolio – Reebok, Adidas, Rockport & taylor made meant for different segment customer groups.
- differentiated targeting strategy to target young adults, adults as well as children who have passion for fitness
& sports.
The portfolio is divided as follows.

 They have Adidas-performance in Competitive sports,

 Reebok & Reebok classics in Active sports & casual sports, &
 Adidas originals, Adidas Fun, Rockport in Sports fashion.

“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”.
Competitive advantage in distribution network ts product quality and its brand equity.
BCG matrix
Adidas & Reebok are stars; Both of these individual brands have a strong market share but at the same time
the competition in this sports and fitness segment is very high. Other brands like Pume, Nike also fight for a
large share of the market.

Rockport & Taylor made is question mark – This is because their market share is low but at the same time
there is a good potential for these brands. But when this potential will actually benefit the company in a large
way is yet to be seen.

Distribution strategy
As the consumer environment becomes even more dynamic with trends quickly changing, Adidas is also
increasing its focus on anticipating these changes and responding with speed. They had aligned their sales
with distribution strategy to enable and propel a heightened consumer-centric Omni-channel mind-set.

After analysing the purchase process of their customers, they came to conclusion that the interactive
experience and the availability, convenience and the size of the product offerings plays a major role in a
successful distribution strategy. In order to expand their distribution system they made the products available
through Exclusive stores (franchise model), Co-branded stores who source it from C & N and distributors.

Industry is growing due to changing lifestyle, economics of the population & migration from Rural to urban
areas but at the same time demand supply mismatch & idle inventory is resulting into shrinking margins of the
players in this industry.

No mass production Only by identifying and understanding consumer’s individual motivations and goals for
doing sport, their lifestyle, their fitness level, where they are doing sport and their buying habits will help them
in creating meaningful products, services and experiences that build a lasting impression and brand loyalty.

The Adidas marketing mix 4Ps has been a tremendous help in forming the most effective marketing strategies
for reaching the target market, boosting the brand equity, increasing the company’s sales and successfully
achieving the set business goals and objectives.

competitive market because of technical innovation, superior quality and high-end designs.

The tagline “Impossible is Nothing” aptly depicts the mindset of one of the oldest footwear brands in the world.
Adidas constantly reinvents itself through its superior quality innovative products that are a firm favourite of
both developed and developing nations.

The iconic 3 stripes on Adidas products and the newer “mountain” and “trefoil” logos make the biggest
sportswear brand a renowned household name in every aspect of life be it sports, lifestyle, pop culture or
fashion. The efforts of the creative team and their marketing strategies have made it possible for the iconic
brand to reach both the common masses and elite customers with equal ease.

The product strategy in the marketing mix of Adidas is very simple. It looks at the structural trends in the
competitive market and tries to push the boundaries of products and services to maintain its hold on the target
market.
Adidas company is known for some of the best releases and newly launched products in the world that
includes signature athlete silhouettes and uniquely designed products for high-end customers. It also offers mill
products for the upper-middle class target audience.
Many sportswear brands have gained popularity in recent years but Adidas has seen a tremendous rise in its
brand equity and brand image because of its product strategy which includes technically advanced product
lines. Running spiked shoes, moulded boots and spring-blade trainers from the Adidas company prove this
fact.
Adidas has spread its product presence to 100+ countries with help of brands like Adidas, Runtastic, Matix,
TailorMade Company, Rockport, Reebok and FC Bayern Munich where it has only a 9% stake. In 2017 it sold
TaylorMade to KPS Capital Partners and in 2022 Reebok to Authentic Brands Group.

The company outsources 100% of production to independent manufacturing partners out of which nearly 71%
are from Asia.

Adidas operates 1,327 concept or retail stores and owns 1,083 factory outlets. In the UK alone, the company
operates through 28 Adidas outlets across 22 cities.

The business activities and the distribution strategy of the company take place through its retail stores and
online stores.

Retail Stores

The marketing mix of Adidas place has created an extensive distribution strategy to meet the demands of its
end customer and increase the company’s sales figures. Products are available in multi-brand showrooms,
company-owned Adidas outlets and fashion stores that cater to customers interested in sportswear.

Both fashion stores and multi-brand showrooms like Walmart deal directly with distributors so that they can get
lucrative deals for displaying company products in their retail stores.

Online Stores

Besides retail stores, Adidas sells its products through the company website and online stores. Some of the
popular online fashion websites are Myntra, Snapdeal, Jabong, Flipkart and Amazon.

The brand has developed a comprehensive price strategy for product pricing. Adidas includes a competitive
pricing strategy and a skimming pricing strategy to deal with the target customers.

Skimming Pricing Strategy

Adidas uses the skimming pricing strategy for its high-end customers who are willing to shed extra bucks for
innovative and good-quality products. At the onset, these products have premium prices to maintain product
exclusivity but as competitors enter the market the brand starts lowering the higher price tags through offers
and discounts on the retail and online fashion websites. The skimming pricing strategy has helped the
company in maintaining its customer base in the market despite the initial high prices of its products.

Competitive Pricing Strategy

Adidas has a wide variety of products for the common masses, celebrities, upper-middle class and sports
professionals. The brand is also very popular in developing nations where it faces stiff competition from rival
brands. To increase the company’s sales in such markets and meet the demands of the end customer
successfully Adidas has implemented a competitive pricing strategy and not a skimming price strategy.
ts marketing mix focuses on an aggressive marketing strategy to connect with the target market. The brand
has used digital and event marketing and memorable marketing campaigns to achieve desired success in the
industry.

Online Archive of Adidas Products

In 2013 Adidas company created an online archive so that interested fans could visit the online museum and
look at the scans of vintage catalogues and images of footwear models. This was a promotional gimmick to
create a connection between the brand and its end customers.

Collaborations and Tie-ups

One of the greatest soccer players from Great Britain David Beckham has signed a lifetime deal worth 160.8
million USD as part of the marketing strategy of Adidas. He will represent the brand as a brand ambassador
throughout his life.

Collaborations with Balenciaga, Gucci and Ivy Park have taken the brand a step further in its desire to achieve
business goals.

Besides soccer players like David Beckham from Great Britain and Lionel Messi from Argentina the renowned
brand has signed basketball player Kareem Abdul-Jabbar and tennis players Stan Smith (a silhouette named
after him Adidas Stan Smith) along with celebrities like Run DMC for a 1 million USD endorsement agreement
and non-athlete musicians like Big Sean and Missy Elliot.

Adidas has collaborated with celebrities like Karlie Kloss, Jonah Hill and Beyoncé and designers Stella
McCartney, Raf Simons, Jeremy Scott and Alexander Wang to create some of the notable Adidas pieces.

Adidas tied up with legendary BMX riders Dave Mirra and Ryan Nyquist to launch signature sneakers that
eventually resulted in huge popularity amongst BMX riders.

“Adidas is all in” Slogan

The “Adidas is all in” slogan was released in 2011 to present a unified image of the brand. The hit slogan has
become one of the primary tools for Adidas’ marketing strategy in recent years.

Sponsorship

The marketing mix of Adidas puts a lot of focus on sponsorship deals and sponsors clubs, teams and players
like Real Madrid, Germany and Steven Gerrard respectively.

Digital Marketing Strategy of Adidas

Adidas has put all its efforts into changing consumer behaviour through digital marketing.

Own the Game

Adidas has invested 1 billion Euro in its digital marketing strategy “Own the Game” until 2025.

Innovative Products
As part of the Adidas marketing strategy, the brand launched the Adidas Tubular Line of Sneakers inspired by
car tires to emulate tires and related threading.

Commercials and TV Ads

Digital marketing is a key aspect of the Adidas marketing strategy under which the brand has launched TV ads
between television programs and commercials on YouTube.

Engine Digital

Adidas Digital Future Team collaborated with Engine Digital to know about the needs of Run Genie’s audience.
It helped the sales team to make viable purchase decisions through data visualization.

Impossible is Nothing

The motto Impossible is Nothing has been an integral part of the marketing mix of Adidas since the year 2004.
The creative marketing campaign highlights Adidas’ attitude of breaking new grounds, surpassing limits and
pushing yourself further.

Take the Deal, Dare to Create

This digital marketing campaign in the marketing mix of Adidas features athletes from various cultures
challenging the existing norms and creating their own style.

The Impossible Rondo Film

Adidas unveiled “The Impossible Rondo Film” with Lionel Messi ahead of his final tournament at the FIFA
World Cup in 2022. Using the latest advancements in VFX and artificial intelligence the film is one of its kind
and became hugely popular amongst the masses.

Most brands are vying for a chance to race past the company but only a few of them like Nike have overtaken
Adidas in the footwear industry.

Adidas is a versatile brand that offers products for regular people as well as professional athletes and so does
Nike. Adidas focuses on soccer and tennis players whereas Nike considers runners and basketball players its
main target.

Nike is an American company that designs products suited for American audiences whereas Adidas being a
German company focuses on German taste.

Both companies are fierce competitors vying to grab the maximum market share in the global sportswear
industry.

 Strong focus on quality supply chain

 Target the end customers through skimming and competitive prices
 Integrated marketing strategy
https://www.marketing91.com/marketing-mix-adidas/

Adidas’ “Own the Game” business strategy is described in this sentence. The company aims to increase
brand credibility, improve the customer experience, and be a leader in sustainability. The strategy is focused
on putting the consumer at the centre of everything they do and is driven by innovation and digital
transformation. The goal is to drive significant growth for the company through this strategy.

Strengths weaknesses
Strong brand recognition – brand value od - Reliance on few key markets – Europe
20.19 billion and north America 37%, 24%
Diverse product portafolio- sportwear, - High marketing and advertising
footwear, accessories, equipment. Broad expenses – invest heavily 100 million
range of customer need -growth and revenue dollar. Impact in profits
Global presence. Europe and Asia- larger - Workforce unsatified
customer base
Exceptional marketing and promotion –
739.17 million dollar
Focus sustainability – reduce environmental
impact reducing waste and recycle material.
60% recuclyed polyester- brand image
Research and devlpment-130 million euros –
development of new and unique products
Strongpartnership colaborations- reach ner
costumers, brand aw3areness, new markets
and recognition - other companies, sports
organizations, athletes.

Opportunities
-Expansion into new markets
Growing demand for sustainable products
Partnerships and collaborations
Diversification into new product categories like
weareable technology
e-commerce and digital reitaling
threaths
Intense competition with nike and puma –
maintain market share
Cultural and regulatory challenges or changes
Economic uncertainty
Changing consumer preferences
Unlicensed sneaker market 450 billiion
dollars- x5 of the legal sector
Not meeting consumer expcetetions

El objetivo de Adidas es más que duplicar sus ventas de comercio electrónico en el 2020 hasta llegar a 4,000
millones de euros, frente a 1,600 millones que registró el pasado año.
Cuando ocurrió la crisis económica global en el 2008, la marca alemana Adidas empezó a tener problemas
financieros, perdió participación de mercado, sus acciones bajaron y Nike empezó a ganar terreno, pero de
acuerdo con los últimos estados financieros de la empresa, parece que todo vuelve a la normalidad y se alista
una vez más para ser el máximo rival de Nike, documenta un reportaje del diario Expansión de España.
Por ejemplo, una de esas medidas para volver a ser competitivos fue la anunciada hace unos meses. Adidas
espera cerrar un gran número de tiendas en los próximos años como parte de un cambio hacia la venta de
más productos a través de su página web, aplicación móvil y ante el hundimiento del retail, según explicó
Kasper Rorsted, el director ejecutivo de la firma, al Financial Times.
El objetivo de Adidas es más que duplicar sus ventas de comercio electrónico en el 2020 hasta llegar a 4,000
millones de euros, frente a 1,600 millones que registró el pasado año.
Varios movimientos marcan el ascenso de Adidas, pero uno por encima de los demás: el acuerdo de larga
duración firmado con Kanye West en el 2016 para diseñar modelos personalizados. Esta relación trajo de la
mano que una de las personalidades más célebres de EU, la casa de Nike. Él y su esposa, Kim Kardashian,
toda una celebrity. Esta exposición en el star system se ha prolongado a lo largo de estos años con acuerdos
con Kendall Jenner, Rita Ora, Stella McCartney o Pharrell Williams.

Lo que busca es posicionarse en el mercado digital y seguir atendiendo a sus compradores habituales. Las
acciones de Adidas cotizan en máximos de tres meses al anotarse un incremento de hasta 8% tras publicar
sus resultados trimestrales que han batido las previsiones de los analistas gracias a las ventas registradas por
camisetas de futbol. Las ventas de camisetas de la Copa del mundo de Adidas superaron 8 millones que se
vendieron para el torneo en Brasil hace cuatro años, dijo el máximo responsable de Adidas, Kasper Rorsted,
en una entrevista con CNBC.
Adidas ha informado que los ingresos aumentaron 10% hasta €5,260 millones en el segundo trimestre,
gracias al crecimiento de 12% de la venta de zapatillas. Los analistas anticipaban 5,170 millones de euros en
ingresos de media.

La empresa informó un desplome de hasta el 80% en sus ingresos a partir del cierre del mercado
chino.

la marca Adidas se sumó al listado de firmas auxiliadas con un desembolso de 3000 millones de euros
asignado por el gobierno alemán. Bankrupcy risk
informó un desplome de hasta el 80% en sus ingresos a partir del cierre del mercado chino, producto del
impacto de la pandemia del coronavirus en todo el mundo. La clausura de los mercados la obligó a
desprenderse de sus locales de venta en Europa, Estados Unidos y Canadá, en tanto que desde la mesa
directiva anunciaron la interrupción en el pago de dividendos mientras continúe la crisis sanitaria.
At adidas, we are rebellious optimists driven by action, with a desire to shape a better future together. We see
the world of sport and culture with possibility where others only see the impossible. ‘Impossible is Nothing’ is
not a slogan for us. By being optimistic and knowing the power of sport, we see endless possibilities to apply
this power and empower all people through action.

By the end of 2019, the Adidas Group was solidly the world’s second largest multinational in the sportswear
manufacturing industry, employing approximately 60,000 people worldwide. Following the successful
implementation of a digital transformation initiated in 2015, the company enjoyed years of sustained growth
and high profitability in the 2016-2019 period, strengthening its brand desirability and increasing sales
volumes, especially in the online space.

It ended fiscal year 2019 stronger than ever and its chief executive officer (CEO), Kasper Rørsted, was very
optimistic about what the future would hold. Yet the COVID-19 outbreak at the beginning of 2020 radically
changed the business landscape. adidas was severely hit by the lockdowns and social distancing was
expected to have a lasting impact on consumer habits – consequently on operations.

And so – what would have been unimaginable only few months earlier – the company’s first earnings call of
2020 focused on the negative results of the preceding few months and the high degree of uncertainty going
forward. Aware of the many challenges facing the company, Rørsted had to decide which strategic initiatives
he should prioritize to future-proof the company and keep it on a steady growth trajectory in a post-COVID-19
world.

 More than 70% of the company’s global store base still closed
Supply chain constraints cost 500m euros- not able to procuce enough product to meet demand

Besides our own employees, workers in our suppliers’ factories play a

central role in our sustainability program. It was our concern for their
working conditions and well-being that led us to establish
our Workplace Standards, the supply chain code of conduct, which also
covers workers’ health and safety and provisions to ensure
environmentally sound factory operations. To enforce compliance with
our Standards we have a multi-level monitoring and enforcement
process in place, which includes the use of a rating system for the
assessment of our suppliers. The rating results are shared with our
Sourcing teams and incorporated into the overall supplier rating that
influences our decision whether and to which extent we continue the
business relationship with a specific supplier. This transparency and
integration with sourcing decisions is fundamental to the success of our
efforts to drive improvements in workplace conditions.

Working closely with key strategic partners, the vast majority of our
products are produced in the facilities of around 110 manufacturing
partners worldwide. We value long-term relationships.

adidas has outsourced most of its production. Overall, we work with

more than 400 independent factories from around the world that
manufacture our products in around 45 countries. Our supply chain is
global and multi-layered, with many different types of business partners,
some of whom are directly contracted factories, while others are not.

Adidas equips 6000 olimpyc athlethes form 33 countries, operate 2,401 sotores worldwide

Adidas has a specific way of targeting people, mostly sport teens. Adidas equipped 33 countries and 6000 Olympic
athletes in the last summer Olympic. These athletes in total won 220 medals (70 gold medals), which resulted in a 50%
increase in apparel sales. Adidas has contracted many famous athletes and teams to show off their brand. The
company would eventually expand to 65 different counties in the world and employing 775,000 people. Adidas is one of
the biggest companies in Europe and is the second, behind Nike, globally. Its main headquarters are in
Herzogenaurach, Germany. Adidas, like many large companies outsource their jobs to developing countries. The
outsourcing of jobs has led to many controversies in Indonesia and china. The positive effect of the globalization of
Adidas is that it has brought many jobs to developing countries. The bad effect would be that the workers in the
factories in developing countries are not being paid fairly and the working conditions are horrible. The companies
established in China have faced many strikes against the work conditions or the amount of pay many workers are paid.
This year, there have been 202 reported incidents in the first quarter this year in China alone. In a recent study,
Chinese workers are said to work from 8am to 11pm, working over the legal limit of overtime. In Adidas Chinese
factories, workers are hired with temporary contracts. That it quite significant I must admit and I am sure that it has
doubled since the first quarter. There has also been a dilemma in Indonesia were they are paid 34p an hour which is
below the minimum wage. This resulted in works skipping meals to make ends meet and to an extreme level, factory
workers passing out during their shifts. In Indonesia, there is lack of basic dignity and respect. For example, workers
need to ask the permission of their managers to use the toilet. They are also verbally abused, are thrown shoes or even
slapped across the face. I am sure this type of behavior is not only exhibited in Indonesia. These workers have the right
to protest against their factories in my opinion. The only thing these workers want is a thirty percent raise.

Honestly, think that is quite attainable since

Adidas is one of the largest companies in the world.

I do believe that Adidas is capable of raising the pay for workers and improving working conditions. If Adidas has
enough money to sponsor both the winter and summer Olympics and the FIFA World Cup, I am sure they can put out
some money for their workers. As much as I would love to see this happen, I am oblivious to say it will happen in the
future. Nevertheless, it is possible to bring to the people purchasing Adidas products the facts. The facts that involve
where their money is going towards, and the working conditions the workers face to bring make the product they are
purchasing.’