Adidas

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The idea was as simple as it was brilliant. Adi Dassler’s aim was to provide every athlete with the best possible equipment. It all began in 1920, when Adi Dassler made his first shoes using the few materials available after the First World War. Today, the Adidas product range extends from footwear and apparel to accessories for all kinds of different sports.




what is it that has made Adidas a stand out over the years?

First of all, The Logo is bright, Sporty and easy to recognize. It has few distinct features making it easily distinguishable with other brands like three line breaks. Also Name is written in small caps. The Slogan of Adidas “Impossible Nothing” though it has just two words, but it says a lot; It stimulates the sportiness and enthusiasm in minds of consumer. The slogan is very apt with the product it is into and the message and perception it wants to make. Brand Positioning Adidas tries to position itself as Sporty brand by associating itself with Major Sports events, Aspirational and successful sportspersons, and also by creating commercials full of energy. The slogan as mentioned above is also very sporty. The primary positioning which Adidas wants to make is of Super quality sports good for Sporty persons.All the parameters are related to Sports,Enthusiasm, reliability and quality.

The goal of Adidas is to lead the sporting goods industry. To achieve this ambitious goal different strategies are applied in order to fuel eager business development in future oriented emerging markets and to facilitate growth in terms of market share in already penetrated countries. Let’s have a look at the Adidas group by using standard marketing tools:

Adidas believe that consumers want choice. Therefore, the group implemented a multi-brand strategy, which allows them to capitalize opportunities from several perspectives, as both a mass and a niche player. According to that, the brand is able to keep a unique identity and focus on its core competencies, whilst simultaneously providing the group with a broad spectrum of products. International marketing is crucial for the group in its quest to generate substantial profits; as survival depends on their established presence on the global world market. What is more, the group is following the “Route 2015”; a strategic business plan incorporating all brands, sales channels and group functions globally. This is done in order to grow the revenues of the Adidas group to 50% currency neutral to 2015.

Consequently, the group’s investments are focused on the highest-potential markets and channels. Hence, Adidas is investing in markets with the best medium to long-term growth and profitability opportunities. Top priority is placed on emerging markets, particularly China and Russia; also building market share in under penetrated markets such as the US. Several factors such as economic, fiscal, technological developments, legal requirements and the business environment are taken into account. Consequently, attention to existing and potential competitors in the business is paid. Especially, in the three identified “attack” markets of Adidas: North America, Greater China, Russia/CIS; which report directly to Adidas group CEO Herbret Hainer, in order to ensure that these markets receive the focus needed to achieve their goals.

Promotional strategy :

The Adidas group sells products in virtually every country of the world. Thus, different promotional tools are used in order to reduce the number of lost customers and to increase sales. The group has set up an unparalleled portfolio of promotion partnerships with international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL). Henceforth, commercials, ads, apps for smartphones, product placement, sponsorships for athletes and sport events (e.g. Berlin Marathon 2011) are implemented.

• ADVERTISEMENT: WHAT BELONGS TOGETHER COMES TOGETHER

From the court to the catwalk and the stadium to the street. The adidas brand offers apparel and footwear for every sport, every fashion, every style, whether you are an athlete or fashionista. And in 2011, adidas brought together sport, street and style for the first time in one campaign to tell the world what it means to go all in, heart over head, inclusion over ego. “all in” (featured by Lionel Messi, David Beckham, Katy Perry and Derrick Rose) lived from the idea that, no matter your goals or challenges, you have to go all in for the ultimate success. 

GLOBAL BRANDS STRATEGY:

To secure long-term sustainable growth for the Group, Global Brands is focused on driving the development of the adidas and Reebok brands. The overall strategic goal is to achieve qualitative, sustainable growth by building desirable brands in consumers’ perception. Global Brands played a central role in the creation of Route 2015, the adidas Group’s strategic business plan that was unveiled in 2010. The adidas and Reebok brands are expected to deliver more than 80% of the targeted growth for the Group until 2015. 

Areas within adidas and Reebok that were identified as key contributors and game changers for the adidas Group include: 

•  Gaining sales and market share in the key global categories running and basketball with adidas Sport Performance.

•  Expanding adidas Sport Style in fast fashion with the adidas NEO label.

•  Maintaining adidas Originals’ strong momentum with the fashion driven lifestyle consumer.

•  Establishing Reebok as the leading fitness brand.

Global Brands also plays a key role in bringing the efficiency initiatives of Route 2015 to life, by focusing on speed, consistency and consumer focus. Among other things, we are striving to present adidas and Reebok in a more consistent way around the world in terms of ranges and pricing. In the long term, this should lead to range size efficiencies and gross margin optimisation. One example of this is the creation of the “Global Foundation Range” for each brand, which will be mandatory for all of our markets and channels.

References :

1. http://www.adidas-group.com/en/investors/strategy/global-brands-strategy/#/driving-the-long-term-development-of-adidas-and-reebok/
2. http://www.adidas-group.com/en/group/history/
3. http://wearedevelopment.net/2012/01/11/adidas-a-global-sports-strategy/