PROJECT REPORT

ON
“MARKETING STRATEGY
OF ADIDAS”

AS A PARTIAL FULFILMENT FOR THE DEGREE

BACHELOR OF MANAGEMENT STUDIES (B.M.S)
SEMESTER – VI

SUBMITTED BY:
MR. ANIMESH NAGESH RAY
ROLL NO: 104

UNDER THE GUIDANCE OF:

PROF. CHANDAN DEVIDASANI

K. M. AGRAWAL COLLEGE OF ARTS, COMMERCE & SCIENCE.

ADDRESS: GANDHARI, PADGHA ROAD,
KALYAN (W), 421-301. DISTRICT – THANE

2023-2024
 DECLARATION

I, the undersigned Mr. ANIMESH NAGESH RAY here by, declare that the work
embodies in this project work titled “MARKETING STRATEGY OF ADIDAS” forms
my own contribution to the research work carried out under the guidance of PROF.
CHANDAN DEVIDASNI is a result of my own research work and has not been
previously submitted to any other University for any other Degree/Diploma to this or any
other University.

Wherever reference has been made to previous works of document has been obtained
andpresented in accordance with academic rules and ethical conduct.

Name and signature of the student

Certified by

Name and signature of the Guiding Teacher

 K. M. AGRAWAL COLLEGE OF ARTS, COMMERCE & SCIENCE.
ADDRESS: GANDHARI, PADGHA RD.,
KALYAN (W), 421-301. DISTRICT – THANE

CERTIFICATE

This is to certify that Mr. ANIMESH NAGESH RAY has worked and duly completed her
project work for the degree of Bachelor of Management Studies under the Faculty of
Commerce in the subject of MARKETING and her project is entitled, “MARKETING
STRATEGY OF ADIDAS” under my supervision.
I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is her own work and facts reported by her personal finding and investigation.

Seal
of the
College
Name and Signature of External Examiner:
Guiding Teacher:

PROF. CHANDAN DEVIDASANI

B.M.S Coordinator: Internal Examiner:

MR. MAHENDRA PANDEY

Self-Finance Incharge: Principal:

MR. SUJEET SINGH DR. ANITA MANNA
Date of Submission:

ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and

freshdimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving

me chance do this project.

I would like to thank my Principal, DR. ANITA MANNA for

providing the necessary facilities required for completion of this
project.

I take this opportunity to thank our Coordinator, PROF. SUJEET

SINGH for hismoral support and guidance.

I would also like to express my sincere gratitude towards my Project

Guide, PROF. CHANDAN DEVIDASANI whose guidance and care
made the project successful.

I would like to thank my College Library, for having provided

various reference books and magazines related to my project.

Lastly, I would like to thank each and every person wo directly or indirectly
helped me in the completion of the project especially my Parents and
Peers who supported me throughout my project.
 TABLE OF CONTENTS

Unit No. Content Page No.

1 Introduction to Marketing 1-2

1.1 Evolution of Marketing 3-5

1.2 Necessity of Marketing 6-7

2 Marketing Mix 8-9

❖ Elements of Marketing Mix 10-13

3 Introduction of Adidas 14-15

3.1 History 16-25

3.2 Adidas in India 26-27
3.3 Products & Services 28-31
3.4 Brand Image 32-33

4 Segmentation of Market by Adidas 34-35

4.1 Geographic Segmentation 35-37

4.2 Demographic Segmentation 38-39
4.3 Behavioural Segmentation 40-41
4.4 Psychographic Segmentation 42-43

5 Promotion Strategies of Adidas 44-45

❖ Sponsorships and Endorsements 45-46

❖ Influencer Marketing 47-48
❖ Digital and Social Media Campaigns 49-50
 ❖ Product Innovation and Technology 51-52
❖ Retail Experiences and Events 53-54
❖ Co-Branding with Fashion and Lifestyle Brands 55-56
❖ Customization and Personalization Programs 57-58

6 Competition Marketing & Strategies 59

6.1 Brands in Competition 60-63

6.2 Pricing War 64-65
6.3 Adidas in Pricing War 66-67
6.4 Current Position of Adidas 68-69
6.5 Collisions of Products 70-71
6.6 Survival Tactic of Adidas in Competition 72-73

7 S.W.O.T Analysis 74

7.1 What is S.W.O.T Analysis? 75-75

7.2 S.W.O.T Analysis of Adidas 76-78

8 P.E.S.T.L.E Analysis 79

8.1 What is P.E.S.T.L.E Analysis? 80-82

8.2 P.E.S.T.L.E Analysis of Adidas in India 83-85

9 Case Study 86-88

10 Conclusion 89

11 Bibliography & Webliography 90

 UNIT 1

1. INTRODUCTION TO MARKETING

1.1 Evolution of Marketing

1.2 Necessity of Marketing

1
 Introduction to Marketing

Marketing is the heartbeat of commerce, a dynamic force that propels businesses forward by
crafting compelling narratives, shaping consumer perceptions, and fostering enduring
relationships. It's the art and science of understanding people's needs and desires, then creatively
fulfilling them in ways that resonate deeply. In essence, marketing is the bridge between
businesses and their audiences, facilitating connections that drive growth, innovation, and
societal change.
As the landscape of commerce continues to evolve, so too does the practice of marketing. Gone
are the days of one-size-fits-all advertising; today's consumers demand personalized experiences
and authentic interactions. Modern marketing is about empathy, about listening as much as
speaking, and about creating value at every touchpoint along the customer journey.
Marketing has also expanded beyond traditional boundaries, embracing new technologies and
channels to reach and engage consumers in innovative ways. From social media platforms to
augmented reality experiences, marketers have an ever-expanding toolkit at their disposal to
connect with audiences and drive meaningful interactions.
At its core, effective marketing is rooted in a deep understanding of human psychology, market
dynamics, and cultural trends. It requires a blend of creativity and analytical rigor, as marketers
must balance intuition with data-driven insights to make informed decisions. From crafting
compelling brand stories to optimizing digital campaigns, every aspect of marketing is a delicate
dance between art and science.
In this comprehensive introduction to marketing, we embark on a journey to explore the
multifaceted world of consumer engagement and brand building. We'll uncover the secrets of
successful marketing strategies, from segmentation and targeting to positioning and messaging.
Along the way, we'll dive into the latest trends shaping the industry, from the rise of influencer
marketing to the impact of artificial intelligence on customer interactions.
Moreover, we'll examine the ethical considerations and societal implications of marketing
practices, exploring topics such as consumer privacy, cultural sensitivity, and environmental
sustainability. As stewards of the brand, marketers have a responsibility to wield their influence
thoughtfully and ethically, ensuring that their efforts contribute positively to society as a whole.
Whether you're a seasoned marketing professional or a newcomer to the field, this introduction
serves as a roadmap for navigating the complexities of modern marketing. Through a blend of
theory and practice, case studies and real-world examples, we'll equip you with the knowledge
and tools needed to thrive in today's fast-paced business environment. So, let's embark on this
journey together and unlock the power of marketing to drive success and make a lasting impact
in the world of commerce.

2
1.1 Evolution of Marketing

Marketing, as we know it today, has deep roots that trace back to ancient civilizations. From the
bartering systems of early human societies to the sophisticated marketing strategies of modern
corporations, the evolution of marketing reflects humanity's enduring quest to exchange goods
and ideas in pursuit of mutual benefit. In this exploration of the history and evolution of
marketing, we embark on a journey through time to uncover the origins of marketing practices
and trace their evolution to the present day.

Ancient Marketing Practices:

The history of marketing can be traced back thousands of years to the earliest human
civilizations. In ancient Mesopotamia, merchants engaged in trade activities, exchanging goods
such as grains, textiles, and livestock through bartering systems. This primitive form of
commerce laid the foundation for future marketing practices, as individuals sought to acquire
desired goods and services through negotiation and exchange.

Medieval Trade and Commerce:

During the Middle Ages, the rise of trade routes and market towns facilitated the exchange of
goods on a larger scale. Merchants traveled far and wide, trading goods such as spices, silk, and
precious metals across continents. The emergence of guilds and trade associations provided a
framework for regulating commerce and protecting the interests of merchants, while markets
served as vibrant hubs of economic activity where buyers and sellers converged to exchange
goods and information.

The Era of Industrialization:

The Industrial Revolution of the 18th and 19th centuries marked a pivotal moment in the history
of marketing. With the advent of mechanized production and mass manufacturing, businesses
began to produce goods on a scale never before seen, leading to unprecedented growth in
consumer markets. The rise of steam-powered transportation and communication technologies
further accelerated the pace of commerce, enabling companies to reach broader audiences and
expand their market reach.

Emergence of Modern Marketing Concepts:

The late 19th and early 20th centuries witnessed the emergence of modern marketing concepts
and techniques. Pioneering figures such as John Wanamaker and Aaron Montgomery Ward
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revolutionized retailing by introducing innovative practices such as fixed pricing, money-back
guarantees, and mail-order catalogs. These developments laid the groundwork for the modern
retail industry and transformed the way businesses interacted with consumers.

The Birth of Advertising:

The rise of mass media in the 20th century gave birth to the modern advertising industry. Print
publications, radio broadcasts, and later television commercials became powerful vehicles for
promoting products and shaping consumer preferences. Advertisers employed persuasive
techniques to capture the attention of audiences, using catchy slogans, jingles, and celebrity
endorsements to sell everything from household goods to luxury automobiles.

The Marketing Concept:

In the mid-20th century, a paradigm shift occurred in the field of marketing with the introduction
of the marketing concept. This concept, popularized by scholars such as Philip Kotler and
Theodore Levitt, emphasized the importance of understanding and satisfying customer needs as
the primary driver of business success. Companies began to adopt a customer-centric approach to
marketing, focusing on market research, product development, and customer relationship
management to create value and build brand loyalty.

The Era of Relationship Marketing:

In the latter half of the 20th century, relationship marketing emerged as a dominant paradigm in
the field of marketing. Building on the marketing concept, relationship marketing emphasizes the
long-term cultivation of customer relationships based on trust, loyalty, and mutual benefit.
Companies began to invest in customer loyalty programs, personalized communication channels,
and customer service initiatives to foster deeper connections with their target audience.

The Digital Revolution:

The advent of the internet and digital technology in the late 20th century ushered in a new era of
marketing. Digital channels such as websites, email, social media, and search engines
transformed the way businesses interacted with consumers, enabling more targeted and
personalized marketing campaigns. The rise of e-commerce platforms further disrupted
traditional retail models, providing consumers with greater convenience and choice in their
purchasing decisions.

4
Data-Driven Marketing:
With the proliferation of digital channels and the exponential growth of data, marketers began to
leverage analytics and data-driven insights to optimize their marketing efforts. Big data analytics,
machine learning algorithms, and customer relationship management (CRM) systems
empowered marketers to segment their audiences, personalize their messaging, and measure the
effectiveness of their campaigns with unprecedented precision.

The Evolution of Marketing Strategies:

As marketing continues to evolve, new strategies and approaches have emerged to meet the
changing needs and preferences of consumers. Content marketing, influencer marketing,
experiential marketing, and guerrilla marketing are just a few examples of innovative techniques
that marketers have embraced to engage audiences and differentiate their brands in crowded
marketplaces.

Ethical and Sustainable Marketing:

In recent years, there has been a growing emphasis on ethical and sustainable marketing
practices. Consumers are increasingly concerned about the social and environmental impact of
their purchasing decisions, prompting companies to adopt more transparent and socially
responsible approaches to marketing. From fair trade certifications to eco-friendly packaging,
brands are aligning their values with those of socially conscious consumers.

The Future of Marketing:

Looking ahead, the future of marketing is likely to be shaped by ongoing technological
advancements, changing consumer behaviours, and societal trends. Artificial intelligence, virtual
reality, augmented reality, and voice search are poised to revolutionize the way marketers engage
with audiences and deliver personalized experiences. Moreover, the continued globalization of
markets and the rise of emerging economies present new opportunities and challenges for
marketers seeking to expand their reach and influence on a global scale.

5
1.2 Necessity of Marketing

Marketing plays a crucial role in the success of any business or organization. Here are some key
points highlighting its importance:

• Customer Awareness: Marketing helps in creating awareness about products, services,

or brands among potential customers. It ensures that the target audience knows about
what is being offered.

• Customer Acquisition: Effective marketing strategies help in acquiring new customers

by attracting them towards the products or services offered by a business. This is
achieved through various channels such as advertising, content marketing, social media,
etc.

• Brand Building: Marketing helps in building a strong brand identity and image.
Consistent messaging, branding elements, and experiences across different channels
contribute to shaping how the audience perceives a brand.

• Market Positioning: Through marketing, businesses can position themselves in the

market by highlighting their unique selling propositions (USPs) and differentiating
themselves from competitors. This helps in targeting specific market segments
effectively.

• Customer Engagement and Loyalty: Marketing fosters engagement with existing

customers through various channels like social media, email marketing, and loyalty
programs. It helps in maintaining relationships with customers, increasing their loyalty,
and encouraging repeat purchases.

• Revenue Generation: Ultimately, marketing efforts are aimed at generating revenue for
the business. By effectively promoting products or services and persuading customers to
make purchases, marketing contributes directly to the revenue stream of the organization.

6
 • Market Research and Insights: Marketing involves conducting market research to
understand customer needs, preferences, and market trends. This data-driven approach
helps in making informed decisions, refining marketing strategies, and adapting to
changing market dynamics.

• Innovation and Adaptation: Marketing encourages innovation by identifying new

opportunities and trends in the market. It also necessitates adaptation to changes in
consumer behaviour, technological advancements, and competitive landscapes.

In summary, marketing is essential for businesses to thrive in today's competitive environment. It

serves as a bridge between the business and its customers, facilitating communication, value
creation, and sustainable growth.

7
 UNIT 2

2. Marketing Mix

❖ Elements of Marketing Mix

8
 MARKETING MIX

The concept of the marketing mix is a foundational pillar in the world of marketing, serving as a
roadmap for businesses to navigate the complexities of promoting their products or services
effectively. Originating from the seminal work of Neil Borden in the 1950s and further
popularized by E. Jerome McCarthy in the 1960s, the marketing mix encompasses a strategic
framework that encapsulates the various elements involved in marketing endeavors. At its core,
the marketing mix revolves around the central idea of understanding and fulfilling customer
needs while achieving organizational objectives. By leveraging the marketing mix, businesses
can develop cohesive and targeted marketing strategies, aligning their efforts with consumer
preferences and market dynamics. This framework provides a structured approach to decision-
making, enabling businesses to allocate resources efficiently, maximize return on investment,
and gain a competitive edge in the marketplace. In essence, mastering the intricacies of the
marketing mix empowers businesses to orchestrate impactful marketing campaigns, drive brand
success, and foster long-term relationships with customers.
The marketing mix comprises essential components that businesses use to craft effective
marketing strategies. These elements, often referred to as the 4Ps, include Product, Price, Place,
and Promotion. Product refers to the offering itself, Price pertains to its monetary value, Place
involves distribution channels, and Promotion encompasses communication and promotional
tactics. Each element plays a vital role in shaping the overall marketing strategy and influencing
consumer behavior. Businesses strategically manipulate these elements to position their offerings
in the market, differentiate themselves from competitors, and ultimately drive customer
satisfaction and loyalty. Understanding and mastering the interplay of these elements is essential
for businesses seeking to succeed in today's competitive marketplace.
In addition to the traditional 4Ps of the marketing mix, three additional elements—People,
Process, and Physical Evidence—are often considered. People focuses on understanding and
meeting the needs of stakeholders, while Process involves optimizing procedures for a seamless
customer journey. Physical Evidence refers to tangible aspects that shape brand perception.
Integrating these elements enables businesses to develop more holistic marketing strategies and
enhance overall customer experiences.

9
2.1 Elements of Marketing Mix (7 P’s)
The marketing mix is a fundamental concept in marketing management that outlines the key
elements or variables that a business can control to influence consumer demand and achieve its
marketing objectives. It is a strategic tool that helps businesses effectively plan and execute their
marketing strategies by considering various factors that contribute to the success of their
products or services in the marketplace.
The introduction of the marketing mix can be traced back to the 1950s when Neil Borden, a
professor at Harvard Business School, first coined the term "marketing mix" in his presidential
address to the American Marketing Association in 1953. Borden's concept initially comprised a
list of twelve elements that he believed were crucial for marketers to consider in their decision-
making processes.
However, it was E. Jerome McCarthy who popularized and simplified the concept of the
marketing mix in his seminal book, "Basic Marketing: A Managerial Approach," published in
1960. McCarthy distilled the marketing mix into four key elements, commonly known as the 4Ps
of marketing: Product, Price, Place, and Promotion. These elements provided a framework for
marketers to structure their marketing strategies and activities.

Introduced by Neil Borden in the 1950s and popularized by E. Jerome McCarthy in the 1960s,
the marketing mix originally comprised a set of controllable variables that marketers could
manipulate to achieve their objectives.
The marketing mix typically includes elements related to product, price, place, and promotion
(commonly known as the 4Ps of marketing). However, for this detailed explanation, let's focus
on the broader concept of the marketing mix without explicitly discussing the Ps.

10
 1) Product:
• At the heart of the marketing mix is the product or service offered by a business.
This encompasses everything the customer receives in exchange for their money,
including the core product or service, its features, design, quality, packaging,
branding, and after-sales service. The product element involves decisions
regarding product development, differentiation, customization, and lifecycle
management.

2) Price:
• Pricing decisions play a crucial role in the marketing mix as they directly impact
revenue, profitability, and perceived value. Price refers to the amount customers
pay for the product or service. It involves setting an appropriate price level based
on factors such as production costs, competitive pricing, market demand, pricing
strategies, and pricing tactics like discounts or bundling. The pricing strategy
chosen should align with the overall marketing objectives and positioning of the
product.

3) Place (Distribution):
• Place, also known as distribution, pertains to how the product or service is made
available to customers. It involves decisions regarding the distribution channels,
logistics, and supply chain management necessary to deliver the product or
service efficiently to the target market. Distribution channels may include
wholesalers, retailers, e-commerce platforms, direct sales, or a combination of
these. The goal is to ensure that the product is accessible and available where and
when customers want it.

4) Promotion:
• Promotion encompasses the various methods used to communicate the value of
the product or service to the target audience and stimulate demand. This includes
advertising, sales promotions, public relations, personal selling, direct marketing,
and digital marketing channels. The promotional mix aims to create awareness,
generate interest, persuade customers to purchase, and reinforce brand loyalty.
Marketers must carefully select the most effective promotional tactics and
messages to reach and resonate with their target market.
These four elements of the marketing mix work together to form a cohesive marketing strategy
that addresses product offering, pricing, distribution, and promotion. By strategically managing
these controllable variables, businesses can optimize their marketing efforts, attract customers,
meet their needs effectively, and achieve their organizational objectives. Additionally, the
marketing mix framework allows for flexibility and adaptation to changing market conditions,
consumer preferences, and competitive dynamics, ensuring continued relevance and success in
the marketplace.

11
Additional 3 P’s:
The 4Ps framework primarily focused on tangible goods and their marketing strategies.
However, as the service sector grew in importance, marketers recognized that traditional
marketing mix elements might not fully capture the complexities of marketing services.
The concept of the extended marketing mix emerged in the 1980s and 1990s, particularly within
the services marketing literature. Marketers and academics began to emphasize the unique
challenges and opportunities associated with marketing services, which often require a more
nuanced approach than marketing tangible products.

The additional Ps were introduced to address these challenges:

The additional Ps (People, Process, and Physical Evidence) were introduced as an extension of
the original marketing mix framework (4Ps) to better address the needs of service-oriented
businesses and to acknowledge the importance of customer experience and service quality.
The 4Ps framework, originally proposed by Neil Borden in 1953 and popularized by E. Jerome
McCarthy in the 1960s, primarily focused on tangible goods and their marketing strategies.
However, as the service sector grew in importance, marketers recognized that traditional
marketing mix elements might not fully capture the complexities of marketing services.
The concept of the extended marketing mix emerged in the 1980s and 1990s, particularly within
the services marketing literature. Marketers and academics began to emphasize the unique
challenges and opportunities associated with marketing services, which often require a more
nuanced approach than marketing tangible products.
The additional Ps were introduced to address these challenges:
5) People:
• In service industries, people play a crucial role in delivering the service
experience. This includes frontline staff, customer service representatives, and
any personnel who interact directly with customers. Recognizing the importance
of these interactions, the "People" element highlights the significance of
employees' skills, attitudes, and behaviours in shaping customer perceptions and
experiences.

6) Process:
• Service delivery often involves a series of processes and procedures that
customers may directly or indirectly encounter. These processes impact the
efficiency, consistency, and quality of service delivery. The "Process" element
underscores the importance of well-designed and streamlined processes to ensure
a smooth and satisfactory customer experience.

12
 7) Physical Evidence:
• Unlike tangible products, services are intangible and can be challenging for
customers to evaluate before purchase. "Physical Evidence" refers to the tangible
cues or tangible elements associated with the service that customers can use to
assess its quality and make judgments about its value. This includes aspects such
as the physical environment (e.g., the ambiance of a restaurant), branding
materials, equipment, and other tangible artifacts that signal the service provider's
capabilities and reliability.

Overall, the additional Ps provide a more comprehensive framework for understanding and
managing the marketing strategies of service-oriented businesses, acknowledging the critical role
of people, processes, and physical evidence in shaping customer perceptions and experiences.

In addition to the traditional 4Ps (Product, Price, Place, Promotion) and the extended 3Ps
(People, Process, Physical Evidence), there is sometimes an eighth “P” included in the marketing
mix framework:

8) Performance:
• Performance refers to the measurement and evaluation of marketing activities
and their impact on achieving organizational objectives. It emphasizes the
importance of analyzing and assessing the effectiveness of marketing efforts in
terms of sales performance, customer satisfaction, market share, return on
investment (ROI), and other key performance indicators (KPIs).

The inclusion of "Performance" underscores the need for marketers to not only develop and
implement marketing strategies but also to monitor and measure their performance over time. By
evaluating performance metrics, marketers can identify areas of strength and weakness, make
informed decisions about resource allocation, and continuously improve their marketing efforts
to achieve better results.
While the traditional 4Ps and extended 7Ps provide a framework for planning and executing
marketing strategies, the addition of "Performance" emphasizes the importance of accountability
and performance measurement in modern marketing practices.

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 UNIT 3
3. Introduction of Adidas

❖ History
❖ Adidas in India
❖ Products & Services
❖ Brand Image
❖ Current Market Scenario of Adidas

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 Introduction of Adidas

Adidas, established in 1949 by Adolf Dassler, has evolved into one of the foremost global brands
in athletic footwear, apparel, and accessories. Renowned for its blend of performance-driven
innovation and iconic style, Adidas has become synonymous with sports culture worldwide.
The brand's success is deeply rooted in its commitment to excellence across all facets of its
products. Adidas continuously pushes the boundaries of innovation, introducing cutting-edge
technologies to enhance athletes' performance. Whether it's the Boost cushioning system for
superior energy return in running shoes or Primeknit technology for seamless, adaptive comfort
in apparel, Adidas strives to equip athletes with the tools they need to achieve their best.
Beyond performance, Adidas maintains a strong focus on design and style. Collaborations with
fashion designers, celebrities, and cultural icons have propelled the brand into the realms of
streetwear and fashion, making Adidas products highly sought after not only for their
functionality but also for their aesthetic appeal.
Adidas's influence extends across a wide range of sports and activities, from soccer and
basketball to running, training, and outdoor adventures. Through partnerships with professional
athletes and sports teams, Adidas has solidified its presence in the competitive arena while also
inspiring amateur athletes and enthusiasts to pursue their passions.
Moreover, Adidas is committed to sustainability and social responsibility, recognizing its role in
creating a positive impact on the environment and society. The brand invests in eco-friendly
materials, sustainable manufacturing processes, and community initiatives aimed at promoting
sports participation and education.
In essence, Adidas embodies a rich legacy of excellence, innovation, and style. Its enduring
popularity among athletes, fashion enthusiasts, and consumers alike is a testament to its
unwavering dedication to quality, performance, and purpose-driven innovation.

15
 3.1 History of Adidas

Adidas was founded by Adolf "Adi" Dassler who made sports shoes in his mother's scullery or
laundry room in Herzogenaurach, Germany after his return from World War I. In July 1924, his
older brother Rudolf joined the business, which became Dassler Brothers Shoe Factory (Gebrüder
Dassler Schuhfabrik). The electricity supply in Herzogenaurach was unreliable, so the brothers
sometimes had to use pedal power from a stationary bicycle to run their equipment.

Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic events.
To enhance the quality of spiked athletic footwear, he transitioned from a previous model of heavy
metal spikes to utilizing canvas and rubber. In 1936, Dassler persuaded U.S. sprinter Jesse
Owens to use his hand made spikes at the 1936 Summer Olympics. Following Owens' four gold
medals, the name and reputation of Dassler shoes became known to the world's sportsmen and
their trainers. Business was successful and the Dasslers were selling 200,000 pairs of shoes every
year before World War II.

16
The Dassler factory, used for production of anti-tank weapons during the Second World War, was
nearly destroyed in 1945 by US forces, but was spared when Adolf Dassler's wife convinced the
GIs that the company and its employees were only interested in manufacturing sports shoes.
American occupying forces subsequently became major buyers of the Dassler brothers' shoes. The
brothers split up in 1947 after relations between them had broken down,[14] with Rudolf forming a
new firm that he called Ruda from Rudolf Dassler, later rebranded Puma, and Dassler forming a
company formally registered as Adidas AG from Adi Dassler on 18 August 1949. An urban
myth has promulgated the backronym All Day I Dream about Sports.

Puma SE and Adidas entered into a fierce and bitter business rivalry after the split. Indeed, the
town of Herzogenaurach was divided on the issue, leading to the nickname "the town of bent
necks" people looked down to see which shoes strangers wore. When handymen were called to
Rudolf's home, they would deliberately wear Adidas shoes. Rudolf would tell them to go to the
basement and pick out a pair of free Pumas. The two brothers never reconciled and although they
are now buried in the same cemetery, they are spaced as far apart as possible.

In 1948, the first football match after World War II, several members of the West German national
football team wore Puma boots, including the scorer of West Germany's first post-war
goal, Herbert Burdenski. Four years later, at the 1952 Summer Olympics, 1500 metres runner Josy
Barthel of Luxembourg won Puma's first Olympic gold in Helsinki, Finland. At the 1960 Summer
Olympics, Puma paid German sprinter Armin Hary to wear Pumas in the 100 meter sprint final.
Hary had worn Adidas before and asked Adolf for payment, but Adidas rejected this request. The
German won gold in Pumas, but then laced up Adidas for the medals ceremony, to the shock of
the two Dassler brothers.

17
Adi Dassler started adidas on August 18, 1949 because he wanted to make a difference in athlete
performance. Seventy years later, adidas has made an impact not only on sports and athletes, but
also on fashion, music, culture, sustainability, and beyond. Travel through time and discover the
history of adidas and the styles that have influenced where we are today.

1950s

Once the 3-Stripes became official in 1949, the ‘50s became a boom of technology, with
innovations to equipment for world-class athletes. adidas’ first decade delivered the Samba, which
soccer players still use today for agility and speed on the indoor soccer field and style in the streets.
The ‘50s also marked the development of a world-record-holding sprint shoe, and the first soccer
cleat designed with a nylon sole, which had an immediate impact on fit and feel. This decade laid
the groundwork for later developments too, like the All round training and basketball shoe that
would become an icon in the ‘80s. These years were revolutionary, creating a shift in what athletes
wore to perform at the top, but it was just the beginning for adidas. Every great story has a
beginning. This one started in a small town in Bavaria, Germany. After first steps in his mother’s
wash kitchen, Adi Dassler registered the “Gebrüder Dassler Schuhfabrik” in 1924 and embarked

18
on his mission to provide athletes with the best possible equipment. Gold medals in Amsterdam
(1928, Lina Radke) and Berlin were first rewards and milestones – and only the start of our story

1960s

The ‘60s was the decade for breaking barriers—from Kathrine Switzer blazing the trail in the
Boston Marathon as the first woman to officially run a marathon to the introduction of the Fosbury
Flop that forever changed how athletes approached the high jump. This was the decade for athletes
to push the limits of their sport with top-of-the-line products for that time. adidas developed the
first specialist running shoe, along with the Azteca Gold sprint spike for the Mexico Olympic
games that gave competitors an extra edge. The '60s also introduced future street style staples like
the iconic adidas tracksuit and an update to the training shoe turned cult classic, the adidas Samba.

1970s

The ‘70s brought us iconic music, culture, and fashion, as well as prominent moments in sports
history. From the Telstar, the World Cup’s first official soccer ball, to the first edition of the cult
favorite adidas Superstar, the ‘70s proved to be an influential period for today’s culture. This
decade laid the foundation for streetwear staples we still love today, like the Adilette—the world’s
most popular slide—and the iconic white tennis shoe named after Stan Smith. As these styles
evolved into today’s, we have kept sustainability and innovation at the forefront. The Nite Jogger

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lit up the ‘70s with new materials for running in the dark, and it was re-imagined with Boost in
2019 as a glowing street sneaker for late-night creators

1980s

The '80s was a decade for innovation. Sports influenced culture, music influenced fashion and
technology progressed. adidas made strides, bringing new technologies to shoes for athletes of all
kinds. The Micro pacer brought digital fitness tracking to running with a screen on the tongue of
the shoe that measured distance, average speed, and calorie consumption. 1983 introduced the
adidas Copa Mundial, which became the bestselling soccer cleat and an icon on the field that’s
still worn by players today. Torsion ZX8000 gave running a flexible torsion technology, making
it the first shoe to match the natural movement of a runner’s ankle. The ‘80s broke barriers in
culture as well, with Run-D.M.C garnering a cult following with the M45k Best bomber jacket.
New York Marathon legend Grete Waitz logged iconic miles in the Atlanta shoe. The Hercules
shoe inspired a high-top revolution in the music industry, and the cushioning elements of the ‘80s
inspired later shoes like the adidas NMD.

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1990s

Though the ‘90s was a period of recognizable fashion, it was also a decade for bringing
technologies closer to where they are today. For the Boston Marathon, adidas developed an iconic
teal and white EQT Volunteer Jacket. This track jacket marked a new era for adidas, sporting the
new 3-Stripes EQT logo that later evolved into today’s recognizable Badge of Sport. Other track
jackets like the Anga featured colorful patterns and color blocking that is popular again today. In
1994, the soccer field got a new player in the game. The Predator Cup was a true revolution in
footwear for soccer players, designed with ridges on the toe box to increase friction between the
cleat and the ball.

2000s

The 2000s further developed what was already working. Next came a custom Predator Precision
SG shoe for world-class soccer star David Beckham, and the Adizero Adios Neftenga, the shoe
Haile Gebrselassie set a marathon world record in. The Supernova Cushion M became the classic
2000s running shoe, which has regained popularity today in the chunky shoe trend. adidas broke
into performance swimwear when cutting-edge swimsuit technology was released for Ian Thorpe
to reduce drag in the water. It was also the decade for collaborations, with Yohji Yamamoto
releasing the YY MEI Brocade—which paved the way for Y-3—and Stella McCartney developing
a line of high-fashion sportswear that continues today.

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2010s

As the 2010s have progressed, sustainability has been at the forefront of new releases. adidas
teamed up with Parley, an ocean conservation organization, to develop shoes and clothes made
with recycled ocean plastic. This began a movement to end the wasteful fashion loop by reusing
plastic and debris that is already polluting the planet. With increased awareness of sustainability
came further technological innovation. The most recent decade brought the development of Boost,
the energy-returning midsole that is a favorite among runners today. The Futurecraft 4D began a
new way of crafting sneakers, with the midsole born of liquid sculpted by light and oxygen for
another evolution of cushioning. This decade also brought iconic partnerships, with Stella
McCartney merging runway fashion and high-performance sportswear for modern women, and
Kanye West launching YEEZY, an adidas line with a cult following. As we’ve come closer to the
here and now, we’ve watched barriers break and new generations fight for equality. In 2015, adidas
released the Superstar Pride Pack, making it the first LGBT+ sneaker for Pride month.

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Current Status of Adidas (2020s):

Adidas AG is the largest sportswear manufacturer in Europe and is second only

to ADIDAS worldwide. Adidas is a multinational corporation, founded and headquartered in
Herzogenaurach, Germany, which designs and manufactures footwear, apparel, and accessories.
The Adidas group is made up of Reebok, TaylorMade, and Runtastic. The company also owns a
share of the German football club Bayern Munich. Adidas' logo is three stripes, which is used on
the company's apparel and footwear designs as a marketing aid. Some of Adidas' major
competitors are ADIDAS, Puma, and Under Armour.

The company employed approximately 57 thousand people worldwide in 2018. The Adidas
Group's global net sales amounted to about 21.92 billion euros in 2018. In that year as well,
the North American region of the Adidas Group generated 21 percent of the company's retail net
sales

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As of 2023, Adidas remains one of the leading apparel, footwear, and accessories brands globally,
continuing its strong presence in the market. Here's an updated overview:

Adidas remains one of the top players in the athletic apparel and footwear industry, maintaining
its position as one of the most valuable brands. While specific brand value figures for 2023 may
vary, it's evident that Adidas continues to hold a significant market share.

The company's key segments, including footwear and apparel, continue to drive its success. In
2022, Adidas produced approximately 430 million pairs of shoes worldwide and a comparable
number of units in sports apparel, indicating a consistent production scale to meet consumer
demand.

Adidas retains its popularity among both men and women worldwide, known for its quality
sportswear offerings. The brand continues to resonate with consumers in various regions, including
the United States.

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In the U.S. market, Adidas maintains a strong presence in sports apparel, footwear, and
accessories. While specific market share figures may vary, Adidas remains a preferred choice for
many consumers.

Among U.S. consumers, Adidas continues to enjoy significant brand loyalty. A substantial
percentage of consumers, likely comparable to previous years, indicate a preference for Adidas
products across clothing, shoes, and accessories.

Moreover, Adidas remains a favored brand among high-income earners in the United States,
reflecting its appeal across diverse consumer segments. A notable percentage of respondents with
high income continue to own and purchase Adidas apparel, footwear, and accessories.

Overall, Adidas's status as a prominent player in the global sportswear market persists, with its
brand strength, product quality, and consumer appeal contributing to its ongoing success.

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3.2 Adidas in India:

In India, Adidas maintains a strong presence as one of the leading brands in the sportswear and
athletic footwear market. The brand has strategically positioned itself to capitalize on the
growing interest in sports and fitness among Indian consumers, as well as the increasing
adoption of athleisure trends in the country. Here's a closer look at the Adidas scenario in India:

➢ Market Position: Adidas is recognized as a premium sportswear brand in India,

competing with both domestic and international players. The brand's focus on quality,
innovation, and style resonates well with Indian consumers who seek high-performance
athletic gear and fashionable sportswear.

➢ Product Portfolio: Adidas offers a wide range of products tailored to meet the diverse
needs and preferences of Indian consumers. This includes footwear for various sports
such as running, soccer, basketball, and cricket, as well as apparel, accessories, and
lifestyle footwear for everyday wear.

➢ Retail Presence: Adidas has established a robust retail presence in India through a
combination of exclusive brand outlets (EBOs), franchise stores, multi-brand outlets
(MBOs), and online channels. The brand's flagship stores in major cities offer immersive
shopping experiences, showcasing the latest collections and innovations.

➢ Marketing and Sponsorships: Adidas leverages strategic marketing initiatives and

sponsorships to enhance its brand visibility and connect with consumers in India. The
brand collaborates with popular athletes, sports teams, and influencers to promote its
products and engage with the target audience. Sponsorship of sporting events, leagues,
and grassroots initiatives further strengthens Adidas's presence in the Indian sports
community.

➢ Embracing Digitalization: Adidas recognizes the growing importance of digital

channels in reaching and engaging consumers in India. The brand invests in e-commerce
platforms, social media marketing, and digital campaigns to drive online sales and
connect with tech-savvy consumers who prefer shopping online.

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 ➢ Focus on Sustainability: In line with its global commitment to sustainability, Adidas
emphasizes eco-friendly practices and initiatives in its operations and supply chain in
India. This includes using sustainable materials, reducing carbon emissions, and
supporting social and environmental causes in local communities.

Overall, Adidas continues to thrive in the Indian market by offering high-quality products,
engaging marketing strategies, and a commitment to innovation and sustainability. With the
growing interest in sports and fitness, coupled with evolving fashion trends, Adidas is well-
positioned to maintain its leadership position and expand its footprint in India's dynamic
sportswear industry.

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3.3 Products & Services

Adidas provides a diverse array of products across multiple categories, serving athletes, fitness
aficionados, and individuals keen on fashion. Below is an overview of the primary product
segments offered by Adidas, along with concise explanations:

1. Footwear:

- Running Shoes: Crafted for optimal performance and comfort, Adidas running shoes
incorporate innovative features such as Boost cushioning for energy return and Primeknit uppers
for a seamless fit.
- Soccer Cleats: Engineered to enhance agility, speed, and control on the field, Adidas soccer
cleats feature lightweight designs, specialized traction patterns, and customizable fits.
- Basketball Shoes: Designed for on-court excellence, Adidas basketball shoes offer stability,
support, and responsiveness through technologies like Bounce cushioning and grippy outsoles.
- Lifestyle Sneakers: Blending sport-inspired aesthetics with everyday comfort, Adidas lifestyle
sneakers include iconic models like the Superstar, Stan Smith, and Ultraboost, ideal for casual
wear.

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2. Apparel:

- Performance Apparel: Adidas performance apparel encompasses a broad range of activewear

tailored for sports such as running, training, soccer, basketball, and yoga, engineered to wick
moisture, provide ventilation, and allow unrestricted movement.
- Lifestyle Apparel: Adidas lifestyle apparel comprises casual clothing suitable for daily wear,
including t-shirts, hoodies, track pants, and jackets featuring the brand's signature logo and
streetwear-inspired designs.

3. Accessories:

- Bags: Adidas offers various bags, including backpacks, duffel bags, and gym sacks, designed
to carry essentials for workouts, travel, and daily activities.
- Hats and Caps: Adidas hats and caps offer sun protection and style, encompassing baseball
caps, beanies, visors, and bucket hats.
- Socks: Adidas socks deliver comfort and performance, featuring moisture-wicking fabrics,
cushioned soles, and arch support for a secure fit during sports and activities.

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 - Sports Equipment: Adidas produces a range of sports equipment, including soccer balls,
basketballs, volleyball kneepads, and training accessories such as agility cones and resistance
bands.
- Eyewear: Adidas offers sports sunglasses and eyewear designed for athletes, delivering UV
protection, impact resistance, and enhanced visibility during outdoor pursuits.
- Watches: Adidas watches combine athletic aesthetics with functional features such as stopwatch
timers, water resistance, and durable straps, suitable for tracking workouts and everyday wear.

In summary, Adidas products are renowned for their blend of performance, style, and innovation,
appealing to athletes, fitness enthusiasts, and fashion-conscious individuals across the globe.
Adidas primarily focuses on providing products, but it also offers some services to enhance the
customer experience and engagement.

Here are some services offered by Adidas, along with explanations:

1. Customization Services:
- Adidas allows customers to personalize their footwear and apparel through customization
services. This may include options to customize colors, materials, and designs to create unique,
one-of-a-kind products. Customers can express their individual style preferences and preferences
through customized Adidas gear, resulting in a more personalized and meaningful product
experience.

2. Virtual Fitting and Styling:

- Adidas offers virtual fitting and styling services through its online platforms and mobile apps.
Customers can use virtual try-on tools to see how products look on them before making a
purchase, enhancing confidence and reducing the risk of returns. Additionally, virtual styling
tools provide personalized recommendations based on individual preferences, helping customers
discover new products and styles that suit their tastes and needs.

3. Loyalty Programs:
- Adidas offers loyalty programs to reward and incentivize repeat purchases and brand loyalty.
These programs may include membership tiers, points-based rewards, exclusive discounts, and
special offers for members. By participating in Adidas loyalty programs, customers can earn
rewards and enjoy exclusive benefits, fostering long-term relationships and engagement with the
brand.

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4. Community and Events:
- Adidas organizes community events, sports activities, and experiences to engage with
customers and connect with the local community. These events may include sports clinics, fitness
workshops, product launches, and brand activations designed to inspire and motivate people to
lead active and healthy lifestyles. By participating in Adidas community events, customers can
interact with the brand, meet like-minded individuals, and experience the Adidas ethos firsthand.

5. Digital Content and Resources:

- Adidas provides digital content and resources to educate, inspire, and entertain customers.
This may include online articles, videos, tutorials, and training programs covering topics such as
sports performance, fitness tips, style guides, and sustainability initiatives. By offering valuable
and engaging content, Adidas aims to enrich the customer experience, build brand affinity, and
position itself as a trusted source of information and inspiration in the sports and lifestyle space.

Overall, these services complement Adidas's product offerings by enhancing the customer
experience, fostering engagement and loyalty, and providing value-added services that cater to
the diverse needs and preferences of its customer base.

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3.4 Brand Image

The brand image of Adidas is multifaceted, encompassing several key attributes that contribute
to its global appeal and recognition.
Some aspects of Adidas's brand image are mentioned below:

1. Performance and Innovation:

- Adidas is renowned for its commitment to performance and innovation in sportswear and
footwear. The brand consistently pushes the boundaries of technology to create products that
enhance athletic performance. From groundbreaking cushioning systems to advanced materials,
Adidas continues to innovate, earning the trust of athletes and fitness enthusiasts worldwide.

2. Authenticity and Heritage:

- With a history dating back to 1949, Adidas boasts a rich heritage steeped in sports culture.
The iconic three-stripe logo and Trefoil symbolize the brand's authenticity and legacy. Adidas's
heritage resonates with consumers who value tradition and craftsmanship, instilling a sense of
trust and reliability in the brand.

3. Style and Fashion:

- Adidas has successfully transitioned from a sports brand to a cultural icon, influencing
fashion trends across the globe. Collaborations with designers, artists, and celebrities have
elevated Adidas's status in the fashion world. The brand's stylish and versatile products appeal to
consumers seeking both performance and aesthetic appeal, cementing Adidas's position as a
lifestyle brand.

4. Inclusivity and Diversity:

- Adidas embraces inclusivity and diversity, championing athletes of all backgrounds, genders,
and abilities. The brand's marketing campaigns and initiatives celebrate diversity, promoting a
sense of belonging and empowerment among its diverse customer base. Adidas's commitment to
inclusivity resonates with consumers who value authenticity and representation.

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5. Sustainability and Social Responsibility:
- Adidas is committed to sustainability and social responsibility, recognizing its role in creating
a positive impact on the planet and society. The brand prioritizes sustainability throughout its
supply chain, from sourcing eco-friendly materials to reducing waste and carbon emissions.
Adidas's sustainability efforts appeal to environmentally conscious consumers who seek ethically
produced products.

6. Global Presence and Influence:

- Adidas's global presence and influence extend across continents, making it one of the most
recognizable brands in the world. The brand's widespread popularity transcends borders,
cultures, and demographics, resonating with consumers from diverse backgrounds. Adidas's
global reach reflects its universal appeal and influence in the sportswear and lifestyle industry.

Adidas's brand image is characterized by its dedication to performance and innovation,

authenticity, style, inclusivity, sustainability, and global influence. These elements collectively
contribute to Adidas's enduring popularity and position as a leader in the industry.

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 Unit 4

4. Segmentation of Market by Adidas

4.1 Geographic Segmentation

4.2 Demographic Segmentation
4.3 Behavioural Segmentation
4.4 Psychographic Segmentation

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4. Segmentation of Market by Adidas

Adidas segments the consumer market into groups based on the demography, geography,
behaviour and psychology. It then targets the most popular sport and focuses on the consumers
based on the segments.

❖ Geographic Segmentation

1. North America:
Adidas North America, headquartered in Portland, Oregon, oversees operations in the United
States and Canada. In North America, Adidas sponsors various sports teams and events
across a range of sports, including:
• Soccer: Adidas sponsors Major League Soccer (MLS) teams such as LA Galaxy and New
York City FC, as well as college soccer programs.
• Basketball: Adidas partners with the National Basketball Association (NBA) and
sponsors NBA players like James Harden and Damian Lillard.
• Running: Adidas sponsors marathons and running events across North America,
promoting its performance running footwear and apparel.
• Football: Adidas supplies football gear to high school and college football teams, as well
as sponsoring individual athletes.

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 • Baseball: Adidas provides baseball cleats, uniforms, and equipment to baseball teams and
players.

2. Europe:
Adidas has a substantial presence in Europe, with key markets including Germany, the United
Kingdom, France, and Spain. In Europe, Adidas sponsors sports teams and events across various
sports, including:
• Football (Soccer): Adidas is deeply involved in football sponsorship, supplying kits to top
football clubs like Real Madrid, Manchester United, and Bayern Munich. It also sponsors
major football tournaments such as the UEFA Champions League and the FIFA World
Cup.
• Rugby: Adidas sponsors rugby teams and players in countries like France and the United
Kingdom, providing performance rugby kits and equipment.
• Tennis: Adidas sponsors tennis players participating in major tournaments like
Wimbledon and the French Open, offering tennis apparel and footwear.
• Athletics: Adidas sponsors track and field athletes, providing performance spikes, apparel,
and accessories for competitions and training.
• Winter Sports: Adidas offers performance gear for winter sports like skiing and
snowboarding, sponsoring athletes in events such as the Winter Olympics.

3. Asia-Pacific:
In the Asia-Pacific region, Adidas focuses on expanding its presence in countries such as
China, Japan, South Korea, and India. Adidas sponsors sports teams and events across various
sports, including:
• Basketball: Adidas partners with professional basketball leagues in China and sponsors
Chinese Basketball Association (CBA) teams, as well as NBA players in the region.
• Football (Soccer): Adidas sponsors football clubs in countries like China, Japan, and
South Korea, as well as national teams in Asia.
• Cricket: In India, Adidas sponsors cricket teams and players, providing cricket apparel
and footwear for matches and training.
• Running: Adidas organizes and sponsors running events and marathons in major cities
across the Asia-Pacific region, promoting its performance running gear.
• Fitness and Training: Adidas sponsors fitness events, gyms, and trainers in urban centers,
promoting its training apparel and footwear.

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 4. Latin America:
Adidas has a growing presence in Latin America, with a focus on key markets such as Brazil,
Mexico, and Argentina. In Latin America, Adidas sponsors sports teams and events across
various sports, including:
• Football (Soccer): Adidas is deeply involved in football sponsorship in Latin America,
supplying kits to top football clubs in Brazil, Argentina, and Mexico. It also sponsors
national teams in the region.
• Basketball: Adidas partners with basketball leagues and teams in countries like Brazil and
Argentina, providing basketball apparel and footwear.
• Athletics: Adidas sponsors track and field athletes in Latin American countries, offering
performance gear for competitions and training.
• Surfing: In countries with coastlines like Brazil and Mexico, Adidas sponsors surfers and
surfing competitions, providing surf apparel and accessories.
• Skateboarding: Adidas sponsors skateboarders and skateboarding events in urban centers
across Latin America, promoting its skateboarding footwear and apparel.

5. Middle East and Africa:

In the Middle East and Africa, Adidas targets urban centers and affluent consumers while also
tapping into the growing sports and fitness market. Adidas sponsors sports teams and events
across various sports, including:
• Football (Soccer): Adidas sponsors football clubs and national teams in countries across
the Middle East and Africa, providing football kits and equipment.
• Basketball: Adidas partners with basketball leagues and teams in urban centers like Dubai
and Johannesburg, offering basketball apparel and footwear.
• Athletics: Adidas sponsors track and field athletes in Africa and the Middle East,
providing performance gear for competitions and training.
• Cricket: In countries like South Africa and the United Arab Emirates, Adidas sponsors
cricket teams and players, offering cricket apparel and footwear for matches and training.
• Fitness and Training: Adidas sponsors fitness centers, trainers, and events in urban areas,
promoting its training apparel and footwear to health-conscious consumers.

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 ❖ Demographic Segmentation

Demographic segmentation involves dividing the market into different segments based on
identifiable demographic factors such as age, gender, income, occupation, education level,
marital status, and family size. Adidas utilizes demographic segmentation to tailor its marketing
strategies and product offerings to meet the specific needs and preferences of different consumer
groups. Here's an elaboration on how Adidas employs demographic segmentation:

1) Age:

• Adidas targets consumers across different age groups, including children, teenagers,
young adults, and older individuals. The brand offers a wide range of products tailored
to the preferences and lifestyles of each age group. For example, Adidas produces
children's footwear and apparel designed for durability and comfort, while also offering
trendy and performance-driven sportswear for teenagers and young adults.

2) Gender:

• Adidas develops products specifically designed for men, women, and gender-neutral
options to cater to diverse consumer preferences. The brand creates distinct marketing
campaigns and messaging tailored to each gender, highlighting features and styles that
resonate with male and female audiences. For instance, Adidas may emphasize
performance and functionality in its men's athletic footwear, while focusing on style
and versatility in its women's activewear collections.

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 3) Income:

• Adidas offers products at various price points to accommodate consumers with different
income levels. The brand provides premium, high-performance sportswear and
footwear for affluent consumers willing to invest in quality and innovation.
Additionally, Adidas offers more affordable options for budget-conscious shoppers,
ensuring accessibility and inclusivity across income brackets.

4) Occupation and Lifestyle:

• Adidas targets consumers based on their occupation and lifestyle choices, recognizing
that individuals with different professions and interests have unique needs and
preferences. For example, Adidas may develop specialized footwear and apparel for
athletes, fitness enthusiasts, outdoor adventurers, and urban commuters, addressing
specific performance requirements and style preferences associated with each lifestyle
segment.

5) Education Level:

• Adidas considers consumers' education levels and knowledge of sports and fitness
when developing marketing campaigns and product messaging. The brand may create
content that educates consumers about the benefits of different sports activities, training
techniques, and performance technologies, catering to both novice and experienced
athletes.

6) Marital Status and Family Size:

• Adidas acknowledges the purchasing behaviours of consumers based on their marital

status and family size. For example, the brand may offer family-friendly promotions
and discounts on bulk purchases of footwear and apparel for households with multiple
members. Additionally, Adidas may develop children's products featuring popular
characters or designs to appeal to parents and guardians shopping for their families.

By employing demographic segmentation, Adidas can identify and target specific consumer
segments with tailored marketing strategies and product offerings, ultimately enhancing brand
relevance, customer satisfaction, and sales performance across diverse demographic groups.

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 ❖ Behavioural Segmentation

Behavioural segmentation involves dividing the market based on consumer behaviour, including
purchasing patterns, product usage, brand loyalty, and lifestyle choices. Adidas utilizes
behavioural segmentation to understand how consumers interact with its products and brands,
enabling the company to develop targeted marketing strategies and personalized experiences.
Here's how Adidas employs behavioural segmentation:

1. Purchase Behaviour:

• Adidas analyzes consumers' purchasing habits to identify patterns and preferences. This
includes understanding factors such as frequency of purchase, average transaction
value, preferred sales channels (e.g., retail stores, online platforms), and timing of
purchases (e.g., seasonal trends, promotional periods). By recognizing different
purchase behaviors, Adidas can tailor promotions, discounts, and incentives to
encourage repeat purchases and drive sales.

2. Product Usage:

• Adidas categorizes consumers based on their usage of its products for various sports,
activities, and occasions. For example, Adidas may target runners, basketball players,
soccer enthusiasts, and gym-goers with specialized footwear and apparel designed for
their specific needs and performance requirements. By understanding how consumers
use its products, Adidas can develop innovative features and technologies that enhance
user experience and satisfaction.

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 3. Brand Loyalty:

• Adidas assesses consumers' brand loyalty and engagement with its products and brands.
This includes identifying loyal customers who consistently choose Adidas over
competitors, as well as understanding the factors that influence brand switching or
abandonment. Adidas may reward loyal customers with exclusive perks, VIP access,
and personalized offers to strengthen brand loyalty and foster long-term relationships.

4. Lifestyle Choices:

• Adidas considers consumers' lifestyles, interests, and values when developing

marketing strategies and product offerings. This involves understanding how sports and
fitness fit into consumers' daily routines, hobbies, and social activities. Adidas may
target consumers who prioritize health, wellness, and self-expression, positioning its
products as essential tools for achieving their lifestyle goals. Additionally, Adidas may
align its brand with cultural trends, social movements, and consumer aspirations to
resonate with target audiences and drive engagement.

5. Occasion-Based Segmentation:

• Adidas segments consumers based on occasions or events where its products are
relevant. This includes targeting consumers for activities such as running, training,
competition, leisure, and everyday wear. Adidas may develop themed collections,
limited-edition releases, and event-specific promotions to capitalize on seasonal trends,
holidays, and cultural celebrations. By aligning its marketing efforts with consumer
occasions, Adidas can create memorable experiences and drive purchase intent among
its target audience.

By leveraging behavioral segmentation, Adidas gains valuable insights into how consumers
interact with its products and brands, enabling the company to develop more targeted and
effective marketing strategies that resonate with its target audience. This approach ultimately
enhances customer satisfaction, brand loyalty, and long-term profitability for Adidas.

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 ❖ Psychographic Segmentation

Adidas employs sophisticated market segmentation strategies to understand and connect with its
diverse consumer base. Among these strategies, psychographic segmentation plays a pivotal role,
dividing the market based on consumers' lifestyles, values, attitudes, and personality traits. By
delving into the deeper motivations and aspirations of its target audience, Adidas can tailor its
marketing efforts and product offerings to resonate with specific consumer segments.

1) Lifestyle Segmentation:
Adidas classifies consumers based on their lifestyles, encompassing their activities, interests,
and perspectives. This involves understanding how sports and fitness integrate into consumers'
daily lives and recreational choices. For instance, Adidas may target active individuals valuing
health and wellness, alongside fashion-conscious consumers who perceive sportswear as a means
of self-expression. By aligning its products and messaging with various lifestyle segments,
Adidas can resonate more deeply with consumers and reinforce brand connections.

2) Values and Beliefs:

Adidas identifies consumers who share common values and principles, such as sustainability,
inclusivity, and social consciousness. This entails appealing to ethically and environmentally
aware consumers who prioritize brands with a positive impact. Adidas may communicate its
dedication to sustainability through initiatives like employing recycled materials, minimizing
carbon footprints, and advocating for fair labor practices. By associating its brand with values
resonating with the target audience, Adidas can cultivate trust and loyalty among socially
responsible consumers.

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3) Attitudes and Aspirations:
Adidas considers consumers' outlooks and ambitions in crafting marketing campaigns and
product assortments. This entails comprehending consumers' aspirations for self-improvement,
accomplishment, and personal fulfillment. Adidas may inspire consumers with messages of
empowerment, resilience, and ambition, positioning its products as enablers of unlocking one's
potential. By tapping into consumers' aspirations and motivations, Adidas can establish
emotional connections fostering brand preference and allegiance.

4) Personality Traits:
Adidas segments consumers based on personality characteristics like adventurousness,
creativity, and determination. This involves recognizing how individuals' personalities shape
their preferences and actions. Adidas may appeal to adventurous consumers with bold and
innovative product designs, while also catering to creative individuals with customizable and
expressive options. By acknowledging the diversity of personalities within its target audience,
Adidas can provide products and experiences resonating with consumers' unique identities and
tastes.

Adidas utilizes psychographic segmentation to gain insights into the intricacies of consumer
behavior and preferences. By categorizing consumers based on their lifestyles, values, attitudes,
and personality traits, Adidas can develop targeted marketing campaigns and personalized
experiences that foster stronger connections with its target audience. This strategic approach
enables Adidas to differentiate itself in the competitive sportswear market and drive brand
loyalty and engagement among diverse consumer segments.

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 UNIT 5

5. Promotion Strategies of Adidas

❖ Sponsorships and Endorsements

❖ Influencer Marketing
❖ Digital and Social Media Campaigns
❖ Product Innovation and Technology
❖ Retail Experiences and Events
❖ Co-Branding with Fashion and Lifestyle Brands
❖ Customization and Personalization Programs

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5. Promotion Strategies of Adidas

❖ Sponsorships and Endorsements

Sponsorships and endorsements are integral components of Adidas's marketing strategy, serving
as powerful tools to enhance brand visibility, credibility, and consumer engagement. Through
strategic partnerships with athletes, teams, and events, Adidas reinforces its association with
sports culture while leveraging the influence and appeal of sports personalities to connect with
consumers.

Example from the Indian Market:

In the Indian market, Adidas has strategically aligned itself with some of the country's most
prominent sports personalities to strengthen its brand presence and resonate with Indian
consumers. One notable endorsement partnership is with Indian cricketer Rohit Sharma. As one
of the leading cricketers in the world and the vice-captain of the Indian cricket team, Rohit
Sharma embodies the values of excellence, leadership, and resilience that Adidas seeks to convey
through its brand.

Adidas's partnership with Rohit Sharma extends beyond mere endorsement deals to include
collaborative initiatives and product collaborations. Rohit Sharma, as a brand ambassador for
Adidas, represents the brand across various marketing channels, including advertising

45
campaigns, promotional events, and social media platforms. His association with Adidas
reinforces the brand's commitment to cricket, a sport deeply ingrained in the Indian psyche,
while also showcasing Adidas's high-performance apparel and footwear offerings to a wide
audience of cricket enthusiasts.
Furthermore, Adidas collaborates with Rohit Sharma on the design and development of signature
cricket gear, including batting gloves, footwear, and apparel. These products are not only tailored
to meet Rohit Sharma's specific performance needs but also reflect his personal style and
preferences. By co-creating products with Rohit Sharma, Adidas enhances its credibility and
relevance in the cricketing community, attracting fans and aspiring cricketers who aspire to
emulate their idol's success on and off the field.

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 ❖ Influencer Marketing

Deepika Padukone's partnership with Adidas exemplifies the brand's strategic use of influencer
marketing to connect with consumers in India. As a style icon and fitness enthusiast, Deepika
Padukone resonates with Adidas's target audience, which includes individuals passionate about
sports, fitness, and lifestyle. Through various marketing initiatives, including advertising
campaigns, social media promotions, and public appearances, Deepika Padukone has showcased
Adidas products in an aspirational and relatable manner. Her endorsement of Adidas apparel,
footwear, and accessories has helped bolster the brand's image as a symbol of style, performance,
and empowerment.

Deepika Padukone's influence extends beyond traditional advertising channels, as she actively
engages with her millions of followers on social media platforms like Instagram and Twitter. By
sharing content related to her fitness regimen, workout routines, and daily life, Deepika
Padukone integrates Adidas products seamlessly into her lifestyle, reinforcing their relevance and
desirability among her fan base.
Moreover, Deepika Padukone's association with Adidas often extends to collaborative projects
and exclusive collections. Whether it's co-designing signature athleisure lines or participating in
brand events and activations, her partnership with Adidas goes beyond mere endorsement to
embody a genuine synergy between the brand's values and her personal ethos.

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Deepika Padukone's role as an influencer for Adidas underscores the brand's commitment to
leveraging the influence and reach of prominent personalities to connect with consumers
authentically. Through her partnership with Adidas, Deepika Padukone amplifies the brand's
messaging, enhances its visibility, and reinforces its positioning as a leader in sportswear and
lifestyle apparel in the Indian market.

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 ❖ Digital and Social Media Campaigns

Digital and social media campaigns play a crucial role in Adidas's marketing strategy, enabling
the brand to engage with consumers, drive brand awareness, and foster meaningful connections
in the digital sphere. Through innovative and impactful campaigns, Adidas leverages the power
of digital platforms to reach audiences across the globe, including the Indian market.

Market-specific Digital and Social Media Campaigns:

In the Indian market, Adidas has executed several digital and social media campaigns tailored to
resonate with the country's diverse and tech-savvy audience. These campaigns harness the
widespread use of smartphones and social media platforms among Indian consumers to deliver
compelling brand messages and experiences.

1. Adidas Originals Launch Campaign: Adidas Originals, the lifestyle division of Adidas,
often launches new collections and collaborations through digital and social media
campaigns in India. These campaigns include teaser videos, interactive website
experiences, and social media posts that generate buzz and anticipation among Indian
consumers.
2. Fitness Challenges and Workouts: Adidas frequently organizes digital fitness
challenges and virtual workout sessions on social media platforms tailored to the Indian
audience. These campaigns encourage participants to engage in fitness activities at home
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 and share their progress and achievements online using specific hashtags or tagging
Adidas's social media accounts.
3. Athlete Spotlights: Adidas showcases Indian athletes and sports personalities on its
digital platforms to inspire and connect with the local audience. Through interviews,
behind-the-scenes content, and athlete spotlights, Adidas highlights the stories and
achievements of Indian athletes, fostering a sense of pride and admiration among Indian
consumers.
4. Product Launches and Promotions: Adidas leverages digital and social media channels
to announce new product launches, promotions, and exclusive offers in the Indian market.
These campaigns include visually appealing content, product features, and limited-time
discounts to drive excitement and sales among Indian consumers.
5. Interactive Polls and Contests: Adidas engages with its Indian audience through
interactive polls, quizzes, and contests on social media platforms. These campaigns
encourage user participation, drive engagement, and provide opportunities for consumers
to win prizes or exclusive experiences with the brand.
These examples demonstrate how Adidas utilizes digital and social media campaigns to connect
with consumers, drive brand engagement, and promote its products and initiatives in the Indian
market. Through strategic content creation, influencer partnerships, and interactive experiences,
Adidas effectively leverages digital platforms to strengthen its brand presence and resonate with
Indian consumers' interests and preferences.

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 ❖ Product Innovation and Technology

Product innovation and technology are at the forefront of Adidas's strategy to stay ahead in the
highly competitive sportswear market. The brand continually invests in research and
development to create cutting-edge products that deliver superior performance, comfort, and
style to athletes and consumers worldwide.
In the Indian market, Adidas introduces innovative products tailored to meet the evolving needs
and preferences of Indian consumers, considering factors such as climate, culture, and sporting
activities popular in the region. Here are some examples of how Adidas implements product
innovation and technology in the Indian market:

1. Climate-Specific Apparel and Footwear: Adidas designs and develops sportswear and
footwear specifically optimized for the diverse climatic conditions prevalent in India.
This includes moisture-wicking fabrics, breathable materials, and weather-resistant
technologies to ensure comfort and performance, whether consumers are training in the
hot and humid conditions of coastal regions or the cooler climates of northern India.
2. Customized Cricket Gear: Given the popularity of cricket in India, Adidas offers
customized cricket gear tailored to the unique requirements of Indian cricketers. This may
include specialized cricket shoes with enhanced grip and stability, lightweight batting

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 pads and gloves for agility, and moisture-wicking jerseys designed to keep players cool
during intense matches played in the Indian heat.
3. Urban Lifestyle Collections: Recognizing the growing trend of athleisure and streetwear
fashion in urban Indian cities, Adidas introduces lifestyle collections that seamlessly
blend performance and style. These collections feature trendy apparel, footwear, and
accessories inspired by street culture, music, and art, catering to the fashion-conscious
youth demographic in India.
4. Digital Integration and Smart Technologies: Adidas integrates digital technologies into
its products to enhance the overall consumer experience. For example, Adidas offers
smart running shoes equipped with sensors and connectivity features that track
performance metrics such as distance, speed, and calories burned. These shoes sync with
smartphone apps, allowing users to analyze their workouts and set personalized fitness
goals.
5. Sustainable Innovations: In line with its global sustainability initiatives, Adidas
introduces eco-friendly materials and manufacturing processes in its products for the
Indian market. This includes using recycled materials, such as ocean plastic and
reclaimed polyester, in apparel and footwear, as well as implementing water-saving and
energy-efficient production methods to reduce environmental impact.
By prioritizing product innovation and technology, Adidas remains at the forefront of the
sportswear industry in India, offering consumers innovative, performance-driven products that
cater to their specific needs and preferences. Through continuous research, development, and
collaboration with athletes and consumers, Adidas reinforces its commitment to pushing the
boundaries of innovation and delivering products that inspire and empower individuals to
perform at their best, both on and off the field.

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 ❖ Retail Experiences and Events

Adidas understands the importance of creating memorable retail experiences and organizing
engaging events to connect with consumers, drive foot traffic to its stores, and strengthen brand
loyalty. Through innovative store designs, interactive experiences, and exciting events, Adidas
aims to provide consumers with more than just a shopping destination but a place where they can
immerse themselves in the brand's culture and community.
In the Indian market, Adidas leverages retail experiences and events to enhance the overall
shopping journey and foster deeper connections with consumers. Here are some examples of
how Adidas implements retail experiences and events in India:

(Ranveer Singh in 2018 at Adidas Retail Store in Delhi, India)

1. Brand Flagship Stores: Adidas operates flagship stores in key Indian cities, such as
Mumbai, Delhi, Bangalore, and Hyderabad, offering consumers an immersive brand
experience. These flagship stores feature cutting-edge designs, interactive displays, and
innovative technologies to showcase Adidas's latest products and brand initiatives. With

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 spacious layouts and modern aesthetics, these stores provide a premium shopping
environment that reflects the brand's values of innovation, style, and performance.

2. Product Launch Events: Adidas organizes exclusive product launch events in India to
generate excitement and anticipation among consumers. These events often feature
celebrity appearances, athlete meet-and-greets, live performances, and interactive
demonstrations, allowing attendees to experience the brand's newest offerings firsthand.
Product launch events serve as platforms for Adidas to showcase its innovation and
creativity while engaging with its target audience in a memorable and impactful way.

3. Pop-Up Shops and Experiential Activations: Adidas creates pop-up shops and
experiential activations at malls, festivals, and sporting events across India to reach
consumers in high-traffic areas and engage them with unique brand experiences. These
pop-up shops feature limited-edition merchandise, interactive installations, and
immersive activities that encourage participation and drive footfall. By bringing the brand
directly to consumers, Adidas creates opportunities for meaningful interactions and
conversions.

4. Workshops and Training Sessions: Adidas organizes workshops and training sessions at
its retail stores in India to educate consumers about fitness, sports performance, and
lifestyle topics. These sessions are led by fitness experts, nutritionists, and professional
athletes who share their expertise and insights with participants. By offering value-added
services and educational opportunities, Adidas enhances its role as a trusted resource for
consumers seeking to improve their health and wellness.

5. Community Events and Initiatives: Adidas actively engages with local communities in
India by organizing sports events, fitness challenges, and grassroots initiatives aimed at
promoting active lifestyles and fostering social connections. These community events
bring people together around a shared passion for sports and fitness, strengthening brand
affinity and building a sense of belonging among participants.
Through retail experiences and events, Adidas creates meaningful touchpoints with consumers in
the Indian market, driving brand engagement, loyalty, and advocacy. By continuously innovating
and adapting to evolving consumer preferences, Adidas strengthens its position as a leading
sportswear brand in India while reinforcing its commitment to inspiring and empowering
individuals to harness the power of sport and fitness in their lives.

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 ❖ Co-Branding with Fashion and Lifestyle Brands:

Adidas frequently collaborates with prominent fashion and lifestyle brands to create limited-
edition collections, exclusive collaborations, and co-branded products that merge sportswear
with streetwear and high fashion. These collaborations allow Adidas to tap into new markets,
expand its brand reach, and attract consumers who appreciate both style and performance.
In the Indian market, Adidas partners with fashion and lifestyle brands to introduce unique and
trend-setting collections that resonate with Indian consumers' evolving tastes and preferences.
Here are some examples of co-branding initiatives by Adidas in India:

1. Adidas x Parley: Adidas collaborates with Parley for the Oceans, an environmental
organization, to create eco-friendly footwear and apparel collections. These collections
feature products made from recycled ocean plastic, highlighting Adidas's commitment to
sustainability and environmental stewardship. By partnering with Parley, Adidas raises
awareness about ocean conservation issues among Indian consumers and offers them the
opportunity to support a worthy cause through their purchase decisions.

2. Adidas Originals x Pharrell Williams: Adidas partners with musician and fashion icon
Pharrell Williams to launch exclusive collections under the Adidas Originals line. These
collaborations blend Pharrell's unique sense of style and creativity with Adidas's
sportswear heritage, resulting in vibrant and eclectic designs that appeal to Indian
consumers seeking bold and expressive fashion statements. The Adidas Originals x
Pharrell Williams collections often feature iconic Adidas silhouettes reimagined with
Pharrell's signature aesthetic, including vivid colors, playful prints, and inspirational
messaging.
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 3. Adidas x Stella McCartney: Adidas collaborates with fashion designer Stella
McCartney to create high-performance activewear collections for women. These
collections combine Adidas's technical expertise in sportswear with Stella McCartney's
fashion-forward design sensibilities, offering Indian consumers stylish and functional
apparel and footwear options for their active lifestyles. The Adidas x Stella McCartney
collaborations reflect a commitment to empowering women through sport and fitness
while elevating the overall aesthetic of sportswear in the Indian market.

4. Adidas Originals x Disney: Adidas partners with Disney to launch co-branded

collections inspired by beloved characters and franchises. These collaborations appeal to
Indian consumers of all ages who have a nostalgic connection to Disney's iconic
characters and stories. The Adidas Originals x Disney collections feature classic Adidas
silhouettes adorned with whimsical Disney motifs, creating playful and enchanting
fashion statements that resonate with Indian consumers' love for pop culture and
storytelling.
Through co-branding initiatives with fashion and lifestyle brands, Adidas expands its brand
appeal, drives excitement, and cultivates a sense of exclusivity among Indian consumers. By
leveraging the creative vision and cultural relevance of its collaborators, Adidas continues to
push the boundaries of sportswear innovation and style, offering Indian consumers unique and
desirable products that reflect their individuality and lifestyle aspirations.

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 ❖ Customization and Personalization Programs

Adidas offers customization and personalization programs that allow consumers to create unique
and one-of-a-kind products tailored to their individual preferences and style. These programs
enable consumers to personalize various elements of Adidas products, such as footwear, apparel,
and accessories, to reflect their personal taste, identity, and lifestyle.
In the Indian market, Adidas provides customization and personalization options to cater to the
diverse preferences of Indian consumers and enhance their shopping experience. Here are some
examples of customization and personalization programs offered by Adidas in India:

1. Personalized Jerseys and Apparel: Adidas offers customization services for jerseys and
apparel, allowing Indian consumers to personalize sports jerseys and apparel with their
names, numbers, or favorite team logos. Whether it's a football jersey or a training shirt,
consumers can add their personal touch to Adidas apparel, making it ideal for sports
teams, fan clubs, or individuals looking to express their allegiance and identity through
personalized sports gear.

2. Exclusive Collaborations and Limited Editions: Adidas collaborates with artists,

designers, and celebrities to create limited-edition collections and exclusive
collaborations that offer customization and personalization options. These collaborations
often feature customizable elements such as interchangeable patches, detachable
accessories, and artist-designed graphics, allowing Indian consumers to express their
individuality through unique and collectible pieces.

3. Customizable Accessories: In addition to footwear and apparel, Adidas offers

customizable accessories such as bags, backpacks, and hats. Indian consumers can
personalize these accessories with their initials, favorite colors, or unique designs, adding
a personal touch to their everyday essentials and accessories.

4. Customization Workshops and Events: Adidas organizes customization workshops and

events at select retail locations in India, providing consumers with hands-on experiences
to design and personalize their Adidas products. These workshops may include
demonstrations, tutorials, and interactive stations where participants can unleash their
creativity and customize their own shoes, apparel, or accessories under the guidance of
Adidas experts.

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By offering customization and personalization programs, Adidas empowers Indian consumers to
co-create their own products and express their individuality through sportswear and lifestyle
gear. These programs not only enhance the brand's appeal and relevance but also foster deeper
connections with consumers who seek unique and personalized experiences in their shopping
journey.

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 Unit 6

6. Competitive Marketing Strategies

6.1 Brands in Competition

6.2 Pricing War
6.3 Adidas in Pricing War
6.4 Current Position of Adidas
6.5 Collisions of Products
6.6 Survival Tactic of Adidas in Competition

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6.1 Brands in Competition

In the vibrant ecosystem of sports apparel and footwear, Adidas stands as a titan, revered
for its commitment to innovation, performance, and style. However, within this fiercely
contested arena, Adidas faces formidable competition from a constellation of renowned
brands, each vying for market share, consumer loyalty, and cultural relevance.
At the forefront of this competitive landscape is Nike, an industry juggernaut renowned
for its iconic branding, innovative product offerings, and high-profile endorsements.
With its "Just Do It" mantra echoing across the globe, Nike exerts a formidable
influence, challenging Adidas at every turn and setting the benchmark for excellence in
the industry.
Joining the fray is Under Armour, distinguished by its relentless focus on performance
enhancement and technological innovation. Endorsements from elite athletes and a
steadfast commitment to pushing the boundaries of athletic apparel further solidify
Under Armour's position as a formidable adversary in Adidas' quest for supremacy.
Meanwhile, Puma emerges as a compelling contender, leveraging its heritage as a sports
brand to captivate consumers with a blend of performance and lifestyle appeal. Through
strategic collaborations and a keen eye for cultural trends, Puma poses a formidable
challenge to Adidas, tapping into the zeitgeist with precision and panache.
Rounding out the competition is Decathlon, a disruptor in the market with its value-
oriented approach and expansive product range spanning multiple sports and activities.
With a focus on accessibility, affordability, and community engagement, Decathlon
presents a unique proposition, enticing consumers seeking quality at an accessible price
point.
In this dynamic landscape, Adidas navigates a labyrinth of challenges and opportunities,
constantly evolving its strategies to stay ahead of the curve. As we delve deeper into the
intricacies of Adidas' competitive environment, we uncover the strategies, tactics, and
implications that shape the battle for supremacy in the global sports apparel market.

1) Nike:
➢ Explanation:
• Nike's iconic branding, epitomized by the "Just Do It" slogan, has entrenched its
position in the minds of consumers worldwide, fostering a strong emotional
connection and brand loyalty.
• High-profile endorsements from elite athletes such as LeBron James, Serena
Williams, and Cristiano Ronaldo not only elevate the brand's credibility but also
amplify its reach across diverse sports and demographics.

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 • Nike's relentless pursuit of innovation in product design and technology,
exemplified by advancements in cushioning systems like Air and React foam,
reinforces its reputation for performance excellence and sets industry standards.
➢ Impact on Adidas:
• Nike's pervasive brand presence and aspirational marketing campaigns pose a
significant competitive threat to Adidas, requiring the latter to continuously
enhance its marketing strategies and product offerings to maintain market share.
• Nike's ability to secure exclusive partnerships and endorsements may limit
Adidas' access to top-tier athletes and influential figures, necessitating strategic
alliances and collaborations to mitigate the impact.

2) Under Armour:
• Explanation:
• Under Armour distinguishes itself through a performance-driven ethos, leveraging
cutting-edge technologies like UA HOVR and UA Rush to enhance athletes'
abilities and optimize performance.
• Strategic endorsements with prominent athletes such as Stephen Curry and
Dwayne "The Rock" Johnson bolster Under Armour's brand authenticity and
resonate with fitness enthusiasts and aspiring athletes.
• The brand's commitment to innovation extends beyond apparel to connected
fitness platforms like MapMyRun, reflecting its holistic approach to empowering
athletes and fitness enthusiasts.
• Impact on Adidas:
• Under Armour's focus on performance-enhancing apparel and gear underscores
the importance of innovation and technological advancement for Adidas to remain
competitive, prompting investment in research and development to stay ahead of
the curve.
• The brand's success in securing endorsements with influential athletes highlights
the importance of athlete partnerships in driving brand visibility and credibility,
prompting Adidas to strengthen its athlete endorsement strategies.

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3) Puma:
• Explanation:
• Puma's distinct positioning in lifestyle and streetwear segments, exemplified by
collaborations with cultural icons like Rihanna and Selena Gomez, enables the
brand to resonate with fashion-forward consumers seeking style and functionality.
• Collaborations with designers and artists infuse Puma's product offerings with
creativity and cultural relevance, fostering a sense of exclusivity and desirability
among consumers.
• Leveraging its heritage as a sports brand, Puma maintains credibility in
performance categories such as soccer and running while simultaneously
capitalizing on lifestyle trends to expand its market reach.
• Impact on Adidas:
• Puma's success in merging sports performance with lifestyle and fashion trends
underscores the importance of diversification and brand agility for Adidas,
prompting strategic investments in both performance and lifestyle categories to
capture evolving consumer preferences.
• The brand's emphasis on collaborations and cultural relevance highlights the
importance of partnerships and brand storytelling in driving consumer
engagement and brand loyalty, prompting Adidas to explore similar initiatives to
enhance its brand image.

4) Decathlon:
• Explanation:
• Decathlon's value-oriented approach appeals to cost-conscious consumers seeking
affordable yet quality sports and outdoor products across a wide range of
categories.
• The brand's extensive product assortment, spanning from apparel and footwear to
equipment and accessories, caters to diverse sporting and recreational needs,
offering convenience and choice to consumers.
• Decathlon's focus on accessibility and community engagement, embodied by
initiatives such as local sports events and inclusive marketing campaigns, fosters a
sense of belonging and loyalty among customers.
• Impact on Adidas:
• Decathlon's expansive retail footprint and competitive pricing pose a challenge to
Adidas by capturing budget-conscious consumers and encroaching on market

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 share, necessitating strategic pricing and distribution strategies to maintain
competitiveness.
• The brand's emphasis on community-building and accessibility underscores the
importance of consumer engagement and grassroots initiatives for Adidas to foster
brand loyalty and differentiation, prompting investment in community-focused
marketing programs and partnerships.

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 6.2 Pricing War

In the intensely competitive arena of sports apparel, pricing wars are a common occurrence as
brands vie for market share and consumer loyalty. Adidas, Nike, Puma, and Under Armour
engage in strategic pricing maneuvers to gain a competitive edge while navigating the delicate
balance between profitability and market positioning. Here's a closer look at the price wars
among these industry giants:

1. Adidas:
• Adaptive Pricing: Adidas employs adaptive pricing strategies, adjusting prices
based on factors such as regional demand, consumer demographics, and product
life cycle stage. For example, it may offer higher prices for limited-edition
releases or premium products endorsed by top athletes, while adopting more
aggressive pricing for entry-level or basic sportswear items.
• Promotional Tactics: Adidas leverages promotional tactics such as seasonal
sales, discounts, and exclusive offers to stimulate demand and maintain market
share. These promotions may coincide with major sporting events, holidays, or
product launches to capitalize on consumer spending trends and generate buzz.
• Competitive Pricing: Adidas closely monitors competitors' pricing strategies,
particularly key rivals like Nike, Puma, and Under Armour, adjusting its own
prices to remain competitive. Price matching and price leadership tactics are
deployed strategically to retain customers and mitigate the risk of losing market
share to rivals.

2. Nike:
• Premium Pricing: Nike positions itself as a premium brand, commanding higher
prices for its cutting-edge technology, iconic designs, and brand cachet. The
brand's Air Jordan line and collaborations with high-profile athletes often carry
premium price tags, appealing to consumers seeking exclusivity and status.
• Innovative Pricing: Nike's pricing strategy is characterized by innovation, with
the introduction of performance-enhancing technologies and materials often
justifying premium prices. The brand invests heavily in research and development
to maintain a competitive advantage and justify its pricing premium.
• Price Leadership: As a market leader in the sports apparel industry, Nike sets
industry standards for pricing, with competitors often taking cues from its pricing

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 moves. Nike's pricing decisions can influence market trends and competitive
dynamics, shaping the broader pricing landscape in the industry.

3. Puma:
• Value-Based Pricing: Puma adopts a value-based pricing strategy, offering a
balance between quality, style, and affordability. The brand positions itself as a
lifestyle and performance brand, catering to consumers seeking fashion-forward
designs and functional sportswear at accessible price points.
• Promotional Campaigns: Puma utilizes promotional campaigns and
collaborations to drive sales and increase brand visibility. Limited-edition
releases, celebrity endorsements, and targeted marketing initiatives help Puma
stand out in a crowded market and attract price-conscious consumers.
• Competitive Pricing: Puma closely monitors competitors' pricing strategies,
particularly Adidas and Nike, adjusting its prices accordingly to remain
competitive. The brand may offer discounts or special promotions to match or
undercut competitors' prices while emphasizing the value proposition of its
products.

4. Under Armour:
• Performance-Driven Pricing: Under Armour positions itself as a performance-
driven brand, emphasizing innovative technologies and premium materials in its
product offerings. The brand's pricing reflects its focus on high-performance gear
tailored for athletes and fitness enthusiasts, commanding premium prices in the
market.
• Promotional Discounts: Under Armour frequently offers promotional discounts
and sales events to drive sales and clear excess inventory. These promotions may
include discounts on seasonal collections, clearance items, or special bundles,
enticing consumers with attractive pricing incentives.
• Strategic Pricing Adjustments: Under Armour closely monitors market trends
and competitor pricing strategies, making strategic adjustments to its own pricing
to maintain competitiveness. Price adjustments may be made in response to
changes in consumer demand, economic conditions, or competitive pressures
from rivals like Adidas, Nike, and Puma.

The price wars among Adidas, Nike, Puma, and Under Armour reflect the dynamic nature of the
sports apparel industry, with brands employing a mix of pricing strategies to capture market
share, drive sales, and maintain profitability in a highly competitive market environment.

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 6.3 Adidas in Pricing War

In the competitive landscape of the sports apparel industry, Adidas employs a strategic marketing
approach to navigate pricing wars effectively while maintaining its brand integrity and market
position. Here's an overview of Adidas' marketing strategy for pricing battles:

1. Value Proposition Communication:

• Adidas emphasizes its value proposition through marketing communication that
highlights the quality, performance, and style of its products. By effectively
communicating the value that Adidas offers to consumers, the brand justifies its
pricing and positions itself as a worthwhile investment compared to competitors.

2. Premium Brand Image Reinforcement:

• Adidas reinforces its premium brand image through aspirational marketing
campaigns, celebrity endorsements, and high-profile partnerships. By associating
itself with top athletes, influencers, and cultural icons, Adidas enhances its
perceived value and differentiation, enabling it to justify premium pricing despite
pricing pressure from competitors.

3. Innovation Showcase:
• Adidas showcases its commitment to innovation through marketing initiatives that
highlight technological advancements and product innovations. By emphasizing
features such as Boost cushioning, Primeknit materials, and sustainability
initiatives, Adidas positions itself as an industry leader, enabling it to command
premium pricing based on perceived product superiority.

4. Segmentation and Targeting:

• Adidas employs targeted marketing strategies to address diverse consumer
segments effectively. By understanding the unique needs, preferences, and
purchasing behaviors of different customer segments, Adidas can tailor its pricing
strategies to align with specific market segments, ensuring competitiveness while
maximizing profitability.

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 5. Promotional Tactics:
• Adidas utilizes promotional tactics strategically to stimulate demand and drive
sales during pricing wars. By offering limited-time discounts, seasonal
promotions, and exclusive deals, Adidas creates urgency and incentivizes
consumers to make purchases, enabling it to maintain market share and mitigate
the impact of aggressive pricing from competitors.

6. Channel Management:
• Adidas manages its distribution channels effectively to control pricing and
maintain brand equity. By working closely with retail partners and implementing
pricing policies that prevent excessive discounting or price erosion, Adidas
ensures consistency in pricing across different channels, safeguarding its premium
brand positioning.

7. Customer Value Enhancement:

• Adidas focuses on enhancing customer value through marketing initiatives that go
beyond pricing. By offering additional benefits such as personalized experiences,
loyalty rewards, and exclusive access to product launches or events, Adidas
strengthens customer loyalty and engagement, reducing price sensitivity and
increasing willingness to pay.

8. Adaptability and Agility:

• Adidas remains adaptable and agile in response to dynamic market conditions and
competitive pressures. By continuously monitoring market trends, consumer
preferences, and competitor actions, Adidas can adjust its pricing strategies
dynamically, seizing opportunities and mitigating threats in real-time to maintain
competitiveness and profitability.

Through these strategic marketing initiatives, Adidas effectively navigates pricing wars,
reinforces its premium brand image, maximizes customer value, and sustains its competitive
advantage in the sports apparel industry. By combining pricing strategy with brand positioning,
innovation, targeted marketing, and customer-centric approaches, Adidas ensures long-term
success and resilience in the face of intense competition.

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 6.4 Current Position of Adidas

Adidas stands as a global icon in the realm of sports apparel, tracing its roots back to its
inception in 1949 by Adolf Dassler. With a legacy spanning over seven decades, Adidas has
transcended mere sportswear to become a cultural phenomenon. Its brand image epitomizes a
fusion of performance, style, and innovation, resonating with athletes, fashion enthusiasts, and
trendsetters alike. From outfitting Olympic champions to shaping urban streetwear trends,
Adidas has established itself as a symbol of excellence, authenticity, and forward-thinking. With
a commitment to pushing boundaries, embracing diversity, and driving positive change, Adidas
continues to inspire and empower individuals worldwide, setting the standard for what it means
to be a global sports and lifestyle brand.

1. Legacy of Sporting Greatness:

• Adidas has a rich history of equipping some of the world's most legendary athletes,
underscoring its commitment to performance and excellence. From Jesse Owens'
triumphs at the 1936 Olympics to Muhammad Ali's iconic boxing matches, Adidas'
association with sporting greatness reinforces its status as a brand trusted by champions.

2. Innovation Leadership:
• Adidas is at the forefront of innovation in sportswear, consistently introducing
groundbreaking technologies that redefine performance and comfort. Its Boost
cushioning technology, for example, provides unparalleled energy return and
responsiveness, revolutionizing the running experience for athletes worldwide.

3. Cultural Collaborations and Influence:

• Through strategic collaborations with influential figures in fashion, music, and art,
Adidas transcends its sportswear origins to become a cultural phenomenon.
Collaborations with Kanye West, Stella McCartney, and Pharrell Williams have elevated
Adidas' brand appeal, shaping global fashion trends and capturing the attention of style-
conscious consumers.

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4. Urban Streetwear Authority:
• Adidas has long been a dominant force in urban streetwear culture, with its iconic
sneakers and apparel becoming staples in street fashion. From the classic Stan Smiths to
the Yeezy Boosts, Adidas' designs effortlessly blend sport and style, embodying
authenticity and attitude in urban fashion.

5. Sustainability Commitment:
• Adidas is committed to sustainability across its operations, supply chain, and product
offerings. By using eco-friendly materials like recycled polyester and implementing
responsible manufacturing practices, Adidas strives to minimize its environmental impact
while creating products that meet the demands of socially conscious consumers.

6. Digital Engagement and Community Building:

• Adidas leverages digital platforms to engage with consumers, creating immersive brand
experiences and fostering community engagement. Through interactive apps, social
media campaigns, and online communities, Adidas connects with its audience on a deeper
level, building loyalty and advocacy among its global fan base.

7. Inclusive Global Identity:

• Adidas celebrates diversity and inclusivity in its marketing campaigns, featuring a diverse
cast of athletes, creatives, and everyday individuals from around the world. By
championing diversity and promoting messages of unity and acceptance, Adidas
reinforces its image as a brand that welcomes and embraces people from all walks of life.

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 6.5 Collision of Products

The collision of products between Adidas and other brands within the sports apparel industry is
characterized by intense competition and distinct brand identities vying for consumer attention
and market share. Here's a look at how products from Adidas intersect and compete with those of
other brands:

1. Performance Innovation Clash:

• Adidas competes fiercely with brands like Nike and Under Armour in the realm of
performance innovation. Each brand continually introduces cutting-edge technologies
and materials in their athletic footwear and apparel lines to enhance performance and
comfort for athletes. This competition drives innovation across the industry, pushing
boundaries and raising the bar for product excellence.

2. Lifestyle and Fashion Showdown:

• In the realm of lifestyle and fashion, Adidas faces off against competitors like Puma and
Reebok. These brands leverage their unique brand identities and collaborations with
celebrities, designers, and cultural influencers to capture the attention of fashion-
conscious consumers. The collision of products in this space results in a diverse range of
stylish athleisure and streetwear offerings, each vying for a slice of the lucrative lifestyle
market.

3. Sustainability Race:
• Adidas, along with brands like Patagonia and Allbirds, is engaged in a sustainability race,
striving to create environmentally friendly products and minimize their carbon footprint.
This collision of products is characterized by eco-friendly materials, responsible
manufacturing processes, and transparency in supply chains. Brands compete not only on
product performance and style but also on their commitment to sustainability and ethical
practices.

4. Price Point Competition:

• Adidas competes with brands like New Balance and ASICS in the mid-range price
segment, where consumers seek quality performance products at a more affordable price
point. This collision of products revolves around value proposition, durability, and brand

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 reputation, with each brand striving to offer the best combination of features and pricing
to attract budget-conscious consumers.

5. Niche Market Battles:

• Within niche markets such as yoga, hiking, or golf, Adidas intersects with specialized
brands like Lululemon, The North Face, or Callaway. These collisions of products occur
in segments where specific functionality, design, or brand affinity are paramount. Brands
differentiate themselves through unique product offerings tailored to the needs and
preferences of niche consumer groups.

In basic terms, the collision of products between Adidas and other brands fuels innovation,
diversity, and consumer choice within the sports apparel industry. This competition drives brands
to continually evolve and improve their offerings, ultimately benefiting consumers with a wide
range of high-quality, innovative, and stylish products to choose from.

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 6.6 Survival Tactics of Adidas in the Competition

1. Continuous Innovation:
• Adidas invests heavily in research and development to stay ahead of competitors in terms
of product innovation. By introducing new technologies, materials, and design concepts,
Adidas maintains its reputation for cutting-edge performance and style.

2. Strategic Partnerships and Collaborations:

• Adidas strategically collaborates with athletes, celebrities, and designers to create
exclusive collections and generate buzz around its brand. These partnerships help Adidas
stay culturally relevant and appeal to a broader audience.

3. Focus on Sustainability:
• Adidas prioritizes sustainability in its operations and product offerings, appealing to
environmentally conscious consumers. By using recycled materials, reducing waste, and
implementing sustainable manufacturing practices, Adidas sets itself apart from
competitors and attracts consumers who value eco-friendly brands.

4. Brand Differentiation:
• Adidas differentiates itself from competitors through its unique brand identity and
heritage. By emphasizing its legacy of excellence, authenticity, and innovation, Adidas
cultivates a strong emotional connection with consumers, making it more than just a
commodity brand.

5. Omni-channel Marketing Strategy:

• Adidas employs an omni-channel marketing strategy to reach consumers across various
touchpoints, including retail stores, e-commerce platforms, social media, and events. This
approach ensures that Adidas remains visible and accessible to consumers wherever they
are, maximizing its market reach and sales potential.

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6. Pricing Strategy:
• Adidas employs a dynamic pricing strategy that balances premium pricing with
occasional promotions and discounts. By offering value-driven pricing while maintaining
its premium brand image, Adidas attracts a wide range of consumers without sacrificing
profitability.

7. Customer Engagement and Loyalty Programs:

• Adidas focuses on building strong relationships with its customers through engaging
marketing campaigns, personalized experiences, and loyalty programs. By rewarding
customer loyalty and encouraging repeat purchases, Adidas fosters brand loyalty and
reduces the risk of losing customers to competitors.

8. Agile Supply Chain Management:

• Adidas maintains an agile supply chain that allows it to quickly respond to changing
market trends and consumer demands. By optimizing its supply chain operations, Adidas
ensures timely delivery of products while minimizing costs and maximizing efficiency.

9. International Expansion:
• Adidas continues to expand its global footprint, penetrating emerging markets and
strengthening its presence in key regions. By tapping into new markets and diversifying
its customer base, Adidas reduces its dependence on any single market and mitigates risks
associated with regional economic fluctuations.

10. Investment in Digital Technologies:

• Adidas embraces digital technologies to enhance the consumer experience, streamline
operations, and gain insights into consumer behavior. By leveraging data analytics,
artificial intelligence, and augmented reality, Adidas stays ahead of the curve in the
digital age, driving innovation and efficiency across its business operations.

In a dynamic and competitive industry, Adidas continues to demonstrate resilience and

innovation, staying true to its commitment to excellence, sustainability, and consumer-centricity.
As it adapts to evolving market trends and consumer preferences, Adidas remains poised to lead
the way in shaping the future of sports apparel, inspiring athletes and enthusiasts worldwide.

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 Unit 7

7. S.W.O.T Analysis

❖ What is S.W.O.T Analysis?

❖ S.W.O.T analysis of Adidas

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 SWOT Analysis

❖ What is SWOT Analysis?

SWOT analysis is a strategic planning tool used by businesses to identify internal strengths and
weaknesses, as well as external opportunities and threats. The acronym "SWOT" stands for
Strengths, Weaknesses, Opportunities, and Threats. By conducting a SWOT analysis,
organizations can gain valuable insights into their current position in the market, assess their
competitive landscape, and develop strategies to capitalize on strengths, address weaknesses,
leverage opportunities, and mitigate threats.

➢ Strengths: Strengths are internal factors that give an organization a competitive

advantage and contribute to its success in the marketplace. These may include attributes
such as a strong brand reputation, innovative product offerings, robust financial
performance, talented workforce, efficient operations, and loyal customer base.
Identifying and leveraging strengths can help organizations differentiate themselves from
competitors and maintain a strong market position.

➢ Weaknesses: Weaknesses are internal factors that place an organization at a disadvantage

or hinder its performance. These may include aspects such as limited resources, outdated
technology, poor brand perception, ineffective marketing strategies, high production
costs, or lack of expertise in certain areas. Recognizing weaknesses is crucial for
organizations to address areas of improvement and enhance their competitiveness in the
market.

➢ Opportunities: Opportunities are external factors in the business environment that

organizations can capitalize on to achieve growth and success. These may arise from
market trends, changing consumer preferences, technological advancements, regulatory
changes, globalization, or emerging market segments. Identifying and seizing
opportunities allows organizations to expand their market presence, enter new markets,
launch new products or services, and diversify their revenue streams.

➢ Threats: Threats are external factors that pose challenges or risks to an organization's
performance and viability. These may include factors such as intense competition,
economic downturns, changing market dynamics, disruptive technologies, regulatory
pressures, supply chain disruptions, or shifting consumer trends. Assessing threats
enables organizations to develop contingency plans, mitigate risks, and adapt their
strategies to navigate uncertain market conditions effectively.

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 ❖ SWOT Analysis of Adidas:

For Adidas in India, conducting a SWOT analysis is essential to assess its competitive position
within the dynamic Indian market. By evaluating internal strengths and weaknesses, such as
brand reputation and product innovation, alongside external opportunities and threats, such as
growing consumer demand and intense competition, Adidas can gain valuable insights into its
strategic position. This analysis enables Adidas to capitalize on India's burgeoning sportswear
market, address market-specific challenges, and develop tailored strategies to leverage its
strengths, mitigate weaknesses, capitalize on opportunities, and navigate threats effectively.
Ultimately, this strategic approach empowers Adidas to enhance its market presence and drive
sustainable growth in India.

❖ Strengths:
Strong Brand Recognition: Adidas enjoys high brand recognition globally, attributed to its
rich heritage, iconic logo, and association with top athletes and sports events. The brand's
strong reputation enhances consumer trust and loyalty, driving sales and market share.
Product Innovation: Adidas is renowned for its continuous innovation in footwear
technology, introducing advancements such as Boost cushioning and Primeknit materials.
These innovations enhance performance, comfort, and durability, attracting athletes and
consumers seeking high-quality sportswear.
Global Presence: With a presence in over 160 countries and a network of retail stores,
distribution channels, and e-commerce platforms, Adidas has established itself as a global
leader in the sportswear industry. Its extensive reach enables it to tap into diverse markets
and consumer segments.
Sponsorship of Elite Athletes: Adidas strategically sponsors top athletes, sports teams, and
events worldwide, including football clubs like Real Madrid and Manchester United, as well
as athletes like Lionel Messi and Serena Williams. These partnerships enhance brand
visibility, credibility, and association with excellence in sports.
Diverse Product Portfolio: Adidas offers a comprehensive range of products, including
footwear, apparel, and accessories for various sports and lifestyle activities. Its diverse
product portfolio caters to different consumer preferences and occasions, ensuring broad
market appeal and revenue streams.

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❖ Weaknesses:
Dependence on Footwear: While Adidas has expanded its product offerings, it remains
heavily reliant on footwear sales for a significant portion of its revenue. This dependency
exposes the company to risks associated with fluctuations in consumer demand and
competitive pressures in the footwear market.
Limited Market Share in Certain Regions: Adidas faces challenges in gaining significant
market share in regions where competitors have stronger footholds or cultural relevance. In
some markets, local brands or preferences may pose barriers to Adidas's growth and market
penetration.
Brand Perception in Certain Markets: Despite its global presence, Adidas may encounter
negative brand perceptions in certain markets due to factors such as pricing, product
availability, or cultural differences. Addressing these perceptions and building stronger
connections with local consumers is essential for sustained growth.
Supply Chain Vulnerabilities: Like many multinational corporations, Adidas is susceptible
to supply chain disruptions, including raw material shortages, transportation delays, and
geopolitical tensions. Ensuring supply chain resilience and agility is critical to mitigating
risks and maintaining operational efficiency.

❖ Opportunities:
Growth in Emerging Markets: Adidas has significant growth opportunities in emerging
economies with rising middle-class populations and increasing interest in sports and fitness.
By expanding its presence in markets such as China, India, and Southeast Asia, Adidas can
capitalize on growing consumer demand for sportswear.
Digital Transformation: Leveraging digital technologies such as e-commerce platforms,
mobile apps, and data analytics, Adidas can enhance its online presence, customer
engagement, and personalized shopping experiences. Embracing digital transformation
enables Adidas to adapt to changing consumer behaviors and preferences in the digital age.
Sustainable Practices: With increasing consumer awareness of environmental issues, Adidas
can differentiate itself by adopting sustainable practices throughout its value chain. Investing
in eco-friendly materials, reducing carbon emissions, and promoting ethical labor practices
not only aligns with consumer values but also enhances brand reputation and loyalty.
Expansion into New Product Categories: Adidas has opportunities to diversify its product
portfolio by entering new categories such as athleisure wear, outdoor gear, or wellness
products. Expanding beyond traditional sports apparel allows Adidas to target new consumer
segments and capture additional market share.

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 ❖ Threats:
Intense Competition: Adidas faces intense competition from other major sportswear brands
like Nike, Under Armour, and Puma, as well as emerging competitors and private labels.
Competitors' aggressive marketing strategies, product innovations, and pricing tactics pose
challenges to Adidas's market share and profitability.
Economic Uncertainty: Economic downturns, currency fluctuations, and changes in
consumer spending habits can impact Adidas's sales and profitability, particularly in regions
heavily reliant on discretionary spending. Uncertainties related to trade policies, tariffs, and
geopolitical tensions further exacerbate economic risks.
Rapid Technological Changes: Adidas must stay abreast of rapid advancements in
technology, including materials science, manufacturing processes, and digital marketing
platforms. Failure to adopt or adapt to emerging technologies could result in product
obsolescence, operational inefficiencies, or loss of competitive edge.
Regulatory Changes: Changes in regulations related to trade, labor, environmental
standards, and intellectual property rights can affect Adidas's operations, supply chain
management, and market access. Compliance with evolving regulatory requirements is
essential to mitigate legal risks and maintain ethical business practices.
By conducting a thorough SWOT analysis, Adidas can gain valuable insights into its internal
capabilities and external environment, enabling informed decision-making and strategic
planning. Leveraging its strengths, addressing weaknesses, capitalizing on opportunities, and
mitigating threats are essential for Adidas to maintain its leadership position in the competitive
sportswear market and drive sustainable growth in the long term.

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 Unit 8

8. P.E.S.T.L.E Analysis

7.1 What is P.E.S.T.L.E Analysis?

7.2 P.E.S.T.L.E of Adidas in India

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 P.E.S.T.L.E Analysis

What is P.E.S.T.L.E Analysis?

PESTLE analysis is a strategic tool used by organizations to assess the external macro-
environmental factors that may impact their business operations and decision-making. The
acronym "PESTLE" stands for Political, Economic, Social, Technological, Legal, and
Environmental factors. By analyzing these factors, businesses can identify opportunities and
threats arising from the broader socio-political, economic, and regulatory landscape.
Here's a detailed breakdown of each component of PESTLE analysis and how it applies to
Adidas:
➢ Political Factors:
Political factors encompass government policies, regulations, and geopolitical dynamics that can
influence business operations. For Adidas, political factors may include:
• Trade Policies: Changes in trade agreements, tariffs, and import/export regulations can
impact Adidas's global supply chain and international trade activities.
• Political Stability: Political instability, civil unrest, or geopolitical tensions in key markets
may disrupt operations and affect consumer confidence and spending.
• Labor Laws: Compliance with labor laws, employment regulations, and worker rights
standards in different countries where Adidas operates can impact production costs and
labor practices.

➢ Economic Factors:
Economic factors refer to macroeconomic conditions, including economic growth, inflation,
interest rates, and currency exchange rates. For Adidas, economic factors may include:
• Consumer Spending: Economic downturns or fluctuations in consumer confidence and
purchasing power can affect demand for sportswear products.
• Currency Fluctuations: Exchange rate volatility can impact Adidas's profitability,
especially in regions where sales are denominated in foreign currencies.
• Income Levels: Income inequality, wage growth, and disposable income levels influence
consumer spending on discretionary items like athletic apparel and footwear.

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 ➢ Social Factors:
Social factors pertain to societal trends, demographics, cultural norms, and consumer behavior
patterns. For Adidas, social factors may include:
• Health and Wellness Trends: Growing awareness of health and fitness promotes demand
for sportswear products, driving sales for Adidas's performance-oriented apparel and
footwear.
• Lifestyle Changes: Changing lifestyles, such as the rise of athleisure wear and
casualization of fashion, influence consumer preferences and fashion trends.
• Demographic Shifts: Population demographics, including age, gender, and urbanization
trends, shape Adidas's target market and marketing strategies.

➢ Technological Factors:
Technological factors encompass innovations, advancements, and disruptions in technology that
impact business operations and product development. For Adidas, technological factors may
include:
• Digitalization: Embracing digital technologies, such as e-commerce platforms, mobile
apps, and augmented reality experiences, enhances Adidas's online presence and
customer engagement.
• Product Innovation: Technological advancements in materials science, manufacturing
processes, and 3D printing enable Adidas to develop innovative products with enhanced
performance, comfort, and sustainability.
• Data Analytics: Leveraging big data and analytics allows Adidas to gain insights into
consumer preferences, market trends, and supply chain optimization, facilitating
informed decision-making and personalized marketing strategies.

➢ Legal Factors:
Legal factors encompass laws, regulations, and compliance requirements that affect business
operations and industry practices. For Adidas, legal factors may include:
• Intellectual Property Rights: Protection of trademarks, patents, and copyrights is essential
to safeguard Adidas's brand assets and prevent counterfeiting and intellectual property
infringement.
• Product Safety Regulations: Compliance with product safety standards and regulations
ensures that Adidas's products meet quality and safety requirements, minimizing liability
risks and reputational damage.

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 • Employment Laws: Adherence to labor laws, workplace regulations, and diversity and
inclusion practices promotes fair employment practices and fosters a positive corporate
culture.

➢ Environmental Factors:
Environmental factors relate to sustainability, climate change, resource management, and
environmental regulations. For Adidas, environmental factors may include:
• Sustainable Sourcing: Adopting sustainable sourcing practices, such as using recycled
materials and reducing water and energy consumption in manufacturing processes, aligns
with Adidas's commitment to environmental stewardship.
• Carbon Footprint Reduction: Initiatives to reduce carbon emissions, minimize waste, and
implement eco-friendly packaging contribute to Adidas's sustainability goals and enhance
brand reputation among environmentally conscious consumers.
• Regulatory Compliance: Compliance with environmental regulations, such as waste
disposal regulations and emissions standards, ensures that Adidas operates responsibly
and minimizes its environmental impact.
By conducting a comprehensive PESTLE analysis, Adidas can gain insights into the external
factors shaping its business environment, enabling informed decision-making and strategic
planning. By proactively addressing opportunities and threats arising from political, economic,
social, technological, legal, and environmental factors, Adidas can adapt to market dynamics,
mitigate risks, and capitalize on emerging trends to drive sustainable growth and success.

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P.E.S.T.L.E Analysis of Adidas in India

The PESTLE analysis is essential for Adidas in India as it helps the company understand and
adapt to the external factors impacting its business operations. Factors such as political stability,
economic growth, regulatory reforms, societal trends, technological advancements, and
environmental concerns significantly influence Adidas's strategy, market positioning, and
decision-making process in India. By conducting a PESTLE analysis, Adidas can identify
opportunities and threats in the Indian market, enabling the company to formulate effective
strategies and sustain its competitive advantage.

❖ Political Factors:
• Government Stability: Political stability in India, exemplified by consistent policies and
leadership, fosters a conducive business environment for Adidas's long-term investments
and operations.
• Trade Relations: Adidas's operations in India may be influenced by trade agreements
between India and major exporting countries. For instance, changes in trade tariffs
between India and China can impact the cost of raw materials and manufacturing for
Adidas.
• Regulatory Environment: Changes in regulatory frameworks, such as tax reforms or labor
law amendments, can affect Adidas's business operations. For example, the
implementation of the Goods and Services Tax (GST) in India streamlined taxation
processes for businesses, including Adidas.
❖ Economic Factors:
• GDP Growth: India's rapid economic growth, exemplified by a robust GDP growth rate
exceeding 7%, presents ample opportunities for Adidas to expand its market presence and
increase sales revenue.
• Inflation Rates: Inflationary pressures in India, particularly on essential commodities,
may impact consumer spending patterns. Adidas may adjust pricing strategies to maintain
affordability and competitiveness in the market.
• Exchange Rates: Fluctuations in currency exchange rates, such as the depreciation of the
Indian Rupee against the US Dollar, can affect the cost of imported goods for Adidas. For
instance, a weaker Rupee may increase the cost of importing raw materials, impacting
product pricing and profitability.

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❖ Social Factors:
• Cultural Diversity: Adidas acknowledges India's diverse cultural landscape by launching
region-specific marketing campaigns and product lines. For example, Adidas Originals
collaborates with Indian artists and designers to create culturally relevant collections.
• Urbanization Trends: The rise of urbanization in Indian metros fuels demand for
sportswear products, prompting Adidas to focus on expanding its retail footprint in urban
centers. Adidas flagship stores in cities like Mumbai and Delhi cater to urban consumers
seeking premium athletic apparel and footwear.
• Rising Middle Class: India's burgeoning middle class, characterized by increased
disposable income and aspirational lifestyles, drives demand for branded sportswear.
Adidas targets this demographic through strategic pricing and product positioning,
offering mid-range and premium product lines tailored to their preferences.
❖ Technological Factors:
• Digital Penetration: Adidas leverages India's growing digital landscape to engage
consumers through social media platforms and e-commerce channels. For instance,
Adidas India collaborates with popular influencers and celebrities to amplify brand
visibility and connect with digitally savvy consumers.
• Manufacturing Automation: Adidas implements advanced manufacturing technologies,
such as robotics and automated production lines, to enhance efficiency and quality
control in its Indian manufacturing facilities. For example, Adidas Speedfactory in India
utilizes automated processes to accelerate production and meet consumer demand for
customized footwear.
❖ Legal Factors:
• Intellectual Property Protection: Adidas enforces stringent measures to protect its
intellectual property rights in India, including trademarks and patents. For instance,
Adidas actively monitors counterfeit products and takes legal action against infringers to
safeguard its brand integrity and market share.
• Regulatory Compliance: Adidas complies with Indian labor laws and environmental
regulations to uphold ethical business practices. For example, Adidas ensures fair labor
practices and workplace safety standards in its Indian manufacturing units, adhering to
local labor regulations and industry standards.
❖ Environmental Factors:
• Pollution Control Measures: Adidas implements sustainability initiatives in India, such as
eco-friendly manufacturing processes and renewable energy utilization, to reduce
environmental impact. For example, Adidas India collaborates with suppliers to
implement water and energy conservation measures in its manufacturing facilities.

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 • Water Conservation: Adidas promotes water conservation efforts in India by adopting
sustainable practices in its supply chain. For instance, Adidas partners with local
communities to implement water recycling and rainwater harvesting projects,
contributing to water conservation efforts in regions facing water scarcity challenges.
By considering these examples within the PESTLE framework, Adidas gains valuable insights
into the external factors influencing its business operations in India. Leveraging these insights,
Adidas can develop targeted strategies to capitalize on opportunities and mitigate risks, ensuring
sustainable growth and success in the dynamic Indian market.
India's political stability not only provides a conducive environment for Adidas to thrive but also
ensures a predictable regulatory landscape, fostering investor confidence. Moreover, the
country's favorable trade relations and regulatory reforms, including taxation policies,
significantly influence Adidas's business strategy, guiding its operational decisions and market
positioning. In addition, the nation's robust economic growth, coupled with urbanization trends
and technological advancements, presents abundant opportunities for Adidas to further penetrate
the Indian market and strengthen its brand presence.

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 Case Study

Introduction

In the fiercely competitive world of sports apparel and footwear, Adidas stands as an iconic
brand synonymous with innovation, performance, and style. With a heritage dating back to the
mid-20th century, Adidas has continuously evolved its brand strategy to stay ahead of the curve
and maintain its position as a global leader. This case study delves into the intricate details of
Adidas's brand strategy, exploring how the company has strategically positioned itself in the
market, engaged with its target audience, and addressed challenges in the rapidly changing
industry landscape.
As one of the most recognizable brands in the world, Adidas has carved out a unique identity that
transcends traditional boundaries. Unlike its competitors, Adidas has embraced a holistic
approach that goes beyond catering solely to athletes. While performance remains a core focus,
Adidas has successfully tapped into the lifestyle and fashion markets, appealing to a diverse
consumer base encompassing athlete, fitness enthusiasts, and trend-conscious individuals alike.
Central to Adidas's brand strategy is its relentless commitment to innovation. From
groundbreaking technologies in footwear to cutting-edge designs in apparel, Adidas continues to
push the boundaries of what's possible. Moreover, the brand's strategic partnerships and
collaborations with high-profile athletes, celebrities, and designers have further solidified its
cultural relevance and resonance among consumers worldwide.
However, navigating the competitive landscape of the sports apparel and footwear industry is not
without its challenges. Adidas faces stiff competition from rivals like Nike and Under Armour, as
well as disruptions caused by e-commerce and fast fashion trends. In response, Adidas must
continually adapt and innovate, leveraging its strengths in technology, design, and marketing to
stay ahead of the curve.
Against this backdrop, this case study aims to dissect Adidas's brand strategy, exploring key
questions regarding its market positioning, consumer engagement tactics, and strategies for
future growth. By examining these aspects in detail, we can gain valuable insights into how
Adidas navigates the competitive landscape, addresses challenges, and sustains its position as a
global powerhouse in the world of sports apparel and footwear.

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Key Questions:

➢ What is Adidas's current market positioning, and how does it differentiate itself from
competitors?
✓ Adidas has positioned itself as a premium sports brand that emphasizes innovation,
performance, and style. Unlike its main competitor, Nike, which often targets high-profile
athletes and sponsorships, Adidas focuses on a broader consumer base, including athletes,
fitness enthusiasts, and fashion-conscious individuals. By leveraging cutting-edge
technology, collaborative partnerships, and trend-setting designs, Adidas has cultivated a
distinct brand identity that resonates with diverse consumer segments.

➢ How does Adidas engage with its target audience and build brand loyalty?
✓ Adidas employs a multi-faceted approach to engage with its target audience and foster
brand loyalty. Through strategic marketing campaigns, sponsorships, and collaborations
with celebrities, athletes, and influencers, Adidas maintains a strong presence across
various channels, including social media, events, and retail activations. The brand also
prioritizes customer experience, offering personalized products, interactive digital
platforms, and exclusive membership programs to enhance engagement and loyalty
among consumers.

➢ What challenges does Adidas face in the rapidly evolving sports apparel and footwear
market, and what strategies can it implement to address these challenges?
✓ Despite its strong brand equity and global presence, Adidas faces several challenges in
the dynamic market landscape. Intense competition from rivals like Nike and Under
Armour, shifting consumer preferences, and disruptions caused by e-commerce and fast
fashion trends pose significant challenges to Adidas's growth and profitability. To address
these challenges, Adidas can focus on innovation and product differentiation, invest in
digital transformation and omnichannel retail strategies, and deepen its connections with
consumers through authentic storytelling and community engagement initiatives.

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Observations:
❖ Adidas's emphasis on innovation and style has helped it attract a diverse consumer base,
including both athletes and fashion-conscious individuals.
❖ The brand's strategic partnerships and collaborations with influencers and celebrities have
contributed to its cultural relevance and brand resonance.
❖ Adidas's investment in sustainability initiatives, such as using recycled materials and
reducing carbon emissions, aligns with growing consumer demand for eco-friendly
products and corporate responsibility.

Solutions:
• Continuously innovate and diversify product offerings to meet evolving consumer needs
and preferences.
• Strengthen digital capabilities and omnichannel strategies to enhance the online shopping
experience and drive sales growth.
• Foster authentic connections with consumers through engaging storytelling, community-
building initiatives, and purpose-driven marketing campaigns.
• Prioritize sustainability and corporate responsibility efforts to address environmental
concerns and build brand trust and loyalty among environmentally-conscious consumers.

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 Conclusion

In conclusion, the analysis of Adidas's marketing strategy presented in this blackbook project
reveals the brand's remarkable ability to adapt and innovate in the ever-evolving landscape of
sportswear and lifestyle industries. Through a comprehensive examination of Adidas's strategic
initiatives, including brand positioning, product innovation, digital engagement, and sponsorship
activations, it becomes evident that the brand's success is rooted in its deep understanding of
consumer preferences and market trends.
By leveraging its rich heritage, commitment to sustainability, and strategic partnerships with
athletes and celebrities, Adidas has successfully carved out a distinct identity in the highly
competitive market. The brand's emphasis on technology-driven innovation, coupled with its
relentless pursuit of excellence in design and performance, has enabled it to maintain a strong
competitive edge and resonate with diverse consumer segments worldwide.
Moreover, the exploration of Adidas's approach to marketing communication underscores its
adeptness at crafting compelling narratives that resonate with consumers on both emotional and
functional levels. From captivating advertising campaigns to engaging social media activations,
Adidas has demonstrated a mastery of storytelling that transcends mere product promotion,
fostering genuine connections with its audience and driving brand loyalty. As Adidas continues
to navigate an increasingly dynamic and complex marketplace, the insights gleaned from this
analysis provide valuable lessons and opportunities for further growth and differentiation. By
remaining agile, customer-centric, and innovative in its marketing endeavors, Adidas is poised to
not only sustain its position as a global leader in sportswear but also to shape the future of the
industry, inspiring athletes and enthusiasts alike to push boundaries and strive for greatness.
Additionally, in an era where social responsibility and sustainability are increasingly paramount,
Adidas's commitment to ethical business practices and environmental stewardship serves as a
cornerstone of its brand identity. By championing initiatives such as the use of recycled materials
and reducing carbon emissions, Adidas not only demonstrates corporate citizenship but also
resonates with a growing segment of socially conscious consumers who prioritize ethical values
in their purchasing decisions.
In essence, the marketing strategy of Adidas exemplifies a harmonious blend of innovation,
authenticity, and purpose-driven leadership. By staying true to its core values while embracing
change and embracing new technologies, Adidas remains poised to not only endure but thrive in
the ever-evolving landscape of the global marketplace. Through strategic agility, creative
storytelling, and a relentless pursuit of excellence, Adidas continues to inspire and empower
individuals to harness the power of sport to make a positive impact on themselves and the world
around them.

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Bibliography:

Adidas Marketing Strategy - An Overview

(Book by Arkadi Borowski)
Sneaker Wars: The Enemy Brothers Who Founded Adidas and Puma and the Family Feud That
Forever Changed the Business of Sport
(Book by Barbara Smit)

Pitch Invasion: Adidas, Puma and the Making of Modern Sport

(Book by Barbara Smit)

Playing the Game: The History of Adidas

(Book by Anne Sudrow, Christian Kleinschmidt, and Jörg Lesczenski)

Webliography:

www.adidas-group.com
www.gingermediagroup.com
www.blucactus.blue
www.digitalagencynetwork.com
www.peppercontent.io
www.financialchronicle.weebly.com/adidas.html
www.britannica.com/topic/Adidas-AG
www.forbes.com

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