Adidas Brand

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<h1 style='line-height:16.0pt'>Adidas Brand Audit
essat<o:p></o:p></h1>

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<h4 style='line-height:16.0pt'>By NertilaAsani | Studymode.com<o:p></o:p></h4>

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ADIDAS
B RAND AUDIT 
 
Eleonora Popova 
Nertila Asani Reita Hackaj Tomas Krajcovic 
 
 
TABLE OF CONTENTS adidas Background
................................................................................
..............................
2 Industry Background
. ...............................................................................
............................
2 Consumer
analysis........................................................................
.......................................
2 Brand Inventory
. ...............................................................................
...................................
3 Brand elements
................................................................................
................................
3 Brand Strategies
. ...............................................................................
...............................
4 Brand portfolio analysis
................................................................................
....................
6 Competitors
. ...............................................................................
.....................................
6 PODs and POPs
. ...............................................................................
.................................
7 Brand Exploratory
................................................................................
................................
8 Brand associations
................................................................................
............................
8 Brand positioning ............................................................
.................................................
8 Brand perceptions
................................................................................
............................
9 SWOT Analysis ................................................................
...................................................
10 Adidas Strengths
................................................................................
............................
10 Adidas Weaknesses ...........................................................
.............................................
10 Adidas Opportunities
................................................................................
......................
11 Adidas Threats ..............................................................
.................................................
11 Recommendations
. ...............................................................................
.............................
11 
 
1 
 
ADIDAS BACKGROUND adidas AG is a German sports
apparel manufacturer and part of the adidas Group,
which consists of REEBOK Sportswear Company, TAYLORMADE- ADIDAS Golf Company,
a nd His aim was to provide sport athletes with the best sports equipment, so he
started ROCKPORT. The company was founded 1924 by Adolf (Adi)
Dassler and registered in 1949. desi
gning
the first shoe with the few materials available after the First World War.
Today, the Adidas product range extends from footwear and apparel to
accessories and sports equipment for all kinds of different sports. The key
priorities are: running, football, basketball and training. Th
e
h eadquarter of the company is in Herzogenaurach
,
Germany. The revenue 2011 amounted $ 13,044 billion and the operating income $
1,011 billion. 
 
INDUSTRY BACKGROUND The sporting goods industry is separated into three
segments: Athletic footwear, apparel and equipment. 
 
Sporting Good Industry 
Athletic Footwear Apparel Equipment 
 
Apparel makes up the biggest part of the 
 
sporting goods industry with 50%, athletic footwear occupies 33% of the market
share and the remaining 17% are made up by equipment. The three largest markets
for athletic 
 
17% 
 
33% 
 
equipment are the US at 50% of the market share and Japan at 10% market share.
 
share, Western Europe at 25% of the market 
 
50% 
 
CONSUMER ANALYSIS <span lang=EN-US style='font-size:14.0pt;font-family:
Symbol;mso-ascii-font-family:Arial;mso-fareast-font-family:"Times New Roman";
m so-hansi-font-family:Arial;mso-bidi-font-family:Arial;mso-char-type:symbol;
mso-symbol-font-family:Symbol'> <span lang=EN-US
style='font-size:14.0pt;font-family:Symbol;mso-ascii-font-family:Arial;
mso-fareast-font-family:"Times New Roman";mso-hansi-font-family:Arial;
mso-bidi-font-family:Arial;mso-char-type:symbol;mso-symbol-font-family:Symbol'> emerging markets in
developing nations undergoing changing societal concerns, attitudes, lifestyles
new internet applications allow consumers ability for customization in online
s tores Target group: urban youth with the brand proposition competition to
lifestyle Adidas is a really consumer- focused brand Consumers demand
differentiation and customization in their products 
 
2 
 
BRAND INVENTORY BRAND ELEMENTS Name The name adidas
w as derived from the initials of the founder Adolf (Adi)
Dassler. The name is easy to remember for the
consumers, you can recall ability and you don t confuse it with any other
brand. Logo The three mark stripes is without doubt
the quintessential adidas symbol. It was created by
t he founder Adolf Dassler and first used on footwear
in 1949. In 1972 they launched the trefoil symbol which
is representing the adidas Originals line today. The
present corporate logo was introduced in 1996 and consists of three bars and
the name adidas written in smallcap
.
The three bars represent a mountain and stand for future challenges of the
consumer. The consumer should have the impression that with wearing adidas every goal can be achieved and he/ she can get over
every challenge. The adidas logo is recognizable for
every consumer, bright, sporty and easy to remember. It differentiates adidas from any other brand in their competing frame. 
 
Slogan The slogan of adidas Impossible is Nothing stimulates the sportiness and enthusiasm in the
minds of consumers. The slogan is very apt with the product it is into and the
message and perception it wants to make. It evokes the impression that with
wearing adidas everything is POSSIBLE and the word
IMPOSSIBLE doesn t exist anymore. The emphasis is on the world IMPOSSIBLE,
that s a world that doesn t exist for people who wear adidas</s
pan>. 
 
Campaigns 
 
Most recent: ADIDAS ALL IN (2011) with an impressive cast: Kate Perry, Lionel
Messi, David Beckham,etc. The campaign shows very well adidas distinctive presence through different 
 
3 
 
cultures, lifestyles and sports and fuges the world
o f music, sports and fashion. It is targeted to everyone and intending to show
that adidas isn t only for sport athletes, but for
everyone. http://www.youtube.com/watch?v=YjMgUanz6h0 Take the stage campaign
for the London Olympics 2012 encouraging This is the biggest campaign adidas ever did in the UK.
http://www.youtube.com/watch?v=3MHhaMXrUk8 
 
British consumers to take the stage 2012 and to show off their talents. 
 
BRAND STRATEGIES 
 
adidas Sport Performance play to win Innovation is
at the core of all adidas Sport Performance products.
The target consumers of the sub-brand are those consumers who by and love
sport. 
 
call themselves athletes, are active in sport, or
simply are inspired While adidas has a pivotal
strength with the 20- to 29-year-olds, going forward a clear focus will be the
high school athlete and the adidas Sport Performance
offers products in most sports categories. The key focus categories are: 
<span
lang=EN-US style='font-size:14.0pt;font-family:Symbol;mso-ascii-font-family:
Arial;mso-fareast-font-family:"Times New Roman";mso-hansi-font-family:Arial;
span
-family:
span
-family:
span
" Times New Roman"'> 14- to 19-year-olds. 
 
Football 
 
Basketball Running Training Outdoor 
 
Furthermore, adidas Sport Performance is focusing on
interactive and customisation as key world s first
web-based personalised training service. adidas Originals celebrating
originality 
 
growth drivers across categories. A perfect example of this is adidas miCoach, which is the 
 
With a holistic offering in products and communications, adid
as
O riginals is focusing on 16- to 24-year-old high school and college kids. To
address the needs of its diverse consumer groups and 4 
 
maximise business opportunities, ad
idas
O riginals takes a three-tier strategy to brand and product marketing: <sp
an
lang=EN-US style='font-size:14.0pt;font-family:Symbol;mso-ascii-font-family:
Arial;mso-fareast-font-family:"Times New Roman";mso-hansi-font-family:Arial;
span
" Times New Roman"'> 
 
First, the brand invests and innovates in new concepts, whether it s street
fashion collections, such as those designed by Jeremy Scott, or entering new
market brands in this segment, Burton. segments such
a s the snowboard community in alliance with one of the leading 
 
 
 
Second, this permanent creation of newness and creating buzz around the
Originals segments such as denim, skate or our women s offensive Sleek. 
 
brand then allows adidas to
broaden their messages and expand into wider business Third, adidas c
ommercialises
the sub-brand to the widest audience with concepts such as ad
icolor,
w here the consumers can find their most-loved footwear and themes such as Star
Wars and Mega. apparel silhouettes in a variety of <spa
n
c lass=SpellE>colours and materials, and appealing seasonal 
 
To stay connected to its core teenage consumers, adidas
O riginals uses a constant stream of digital content to keep them interested 365
days a year. On digital media such as Facebook, currently a
l eader in the digital marketplace. a
didas
Sport Style style your life What once started as a niche business has
developed into a adidas Originals meanwhile has over
7 million fans. This is an area where adidas
Originals is 
 
significant contributor to the Group s top-line development. To Style is
targeting that market with a clear multi-label strategy. 
 
best tap the potential of the sports fashion market, <s
pan
class=SpellE>adidas Sport 
 
Y-3: pioneering 
 
Y-3 targets a sophisticated, forward-thinking fashion consumer and has enabled adidas to enter the premium sports fashion market segment. adidas SLVR: smart design 
 
adidas SLVR is the smart fashion sportswear label
within adidas Sport Style. At adida
s,
i t is sportswear that lasts longer than one season. The adida
s
SLVR label fulfils this need. adidas NEO label: fast and fresh 
 
believed that there is a need in the market for sophisticated, classic, yet
fresh and confident 
 
The NEO label brings stylish products for the more price-conscious consumer who
is looking for seasonal fashion items with a sports-casual fl
avour,
c onstant newness, expressing their personality and reflecting their lifestyle
a nd values. Incorporating footwear, apparel and a premium to competitors. 
 
accessories, adidas NEO
label focuses more on accessible price points, however maintaining 
 
5 
 
BRAND PORTFOLIO ANAL YSIS Adidas unique brand portfolio spans from apparel and
footwear for professional athletes to premium fashion. It allows adidas to address multiple consumer needs, exploit market
o pportunities from various angles as well as be less affected by
one-dimensional market risks. Adidas commitment to product innovation and its
rich heritage differentiates the intends to inspire,
s upport and equip all athletes in the best possible way to help them achieve
their optimal performance. brand from competitors and
provides a solid platform for future growth. That means adida
s 
 
Adidas brand extensions are clearly differentiated from each other. Each
extension has its 
 
own logo; still the three stripes are present in all, linking each brand to the
quality, heritage and status that the core adidas
brand carries. In addition, the Sport Performance, Originals and Sport style
brands have their own marketing campaigns and even own retail outlets. 
 
COMPETITORS Although there are many different
companies in the sporting goods industry, in this brand audit we will focus on adidas two main competitors: Nike and Puma. NIKE Nike is adidas biggest
competitor and also the market leader in the sporting goods industry. It is
considered to be the number 1 brand in the performance sportswear segment. The
U.S. market is largely dominated by this brand. Nike is known for their huge
spending in marketing and advertising. Nike s primary target consumers are the <s
pan
class=GramE>so called Yuppies: young males between the age of 18 and 35,
actively participating in sport. Its secondary target audience is the Buy-Me
Dads, i.e. males between 35 and 60 years old. Lately Nike started to target
females 18-35 years old, who are rebellious and single-minded, often referred
t o as Tomboys. Nike s brand extensions include Nike +: a line of support
technology products for use in sports. It was developed together with Apple and
includes a line of Nike branded iPods designed for running. One of the most
successful brand extensions is the Air Jordan Brand. It is a brand of sport
performance sportswear and footwear inspired by Michael Jordan. This brand
extension gave the start of the athlete-as-brand concept, which is carried
through into today. The marketing strategy is to create brands out of athletes
and then have those athletes represent what Nike itself is about. These
athletes become so recognizable, they reach one name status , meaning
mentioning them by their first name alone will register immediate recognition.
Nowadays, one of the most popular athletes-as-brands are
K obe 6 
 
Bryant and LeBron James in basketball, Roger Federer and Rafael Nadal in tennis, Tiger Woods in golf. Each of the athletes
has his/her own logo within the Nike products and also his/her own marketing
campaign. Another brand extension of Nike is its Skateboarding line, which was
an attempt to break into the skateboarder culture. Finally, N
ikeGolf
i s the brands line of high-performance golf products, including own line of
golf clubs as well. PUMA Puma is ad
idas
other big competitor, although their market share is quite small in the
sporting goods industry. Their brand portfolio includes the two masterbrands: Puma Sport and Puma Sport Lifestyle; sub-brand
s
s uch as 96 hours and nuala, and the cobrands Puma-<spa
n
c lass=SpellE>Mihara and Puma-Stark. Puma s strategies include the
co-branding with Ferrari and F1, in order to increase awareness about their
brand. The Sport division focuses on the traditional sports, i.e. football,
basketball, etc., but also they try to tackle the extreme sport segment (BMX
and motorsports), where neither adidas nor Nike have
set foot yet. Currently, they put a lot of attention on their sub-brands 96
hours and nuala which are
active in the high fashion sport segment. Puma s vision is to elevate the
brands so that they can compete with other market leaders such as Versace and <s
pan
class=SpellE>Dolce&Gabbana. PODS AND POPS 
 
POINTS OF PARITY 
 
POINTS OF DIFFERENCE 
 
Focus on innovation 
 
Broader product line 
 
Premium price strategy 
 
Team focus in advertising 
 
Sponsorship agreements 
 
Classic image 
 
Athletes endorsement 
 
Focus on product quality 
 
7 
 
 
BRAND EXPLORATORY BRAND ASSOCIATIONS When we mention adidas,
everyone associates the brand with an image of a sporty person, concerned about
his/her health, with athletic products of high quality and aiming at topnotch
p erformance while simultaneously having a flavor of stylishness and coolness.
A lthough the perception has slightly changed over the course of the past few yea
rs,
in its very core, the associations have remained more or less intact. The minor
change in perception will be elaborated on in more detail later on. BRAND
POSITIONING From the very beginning, adidas has
constantly positioned itself as brand for hard-core sports persons. This was
conditioned by Adi Dasler s
initial idea to manufacture high quality footwear for athletes and with
athletes. The company tightly cooperated with various sportsmen to enhance the
sporting experience, achieve the best performance and provide the best quality
products, thus targeting sportspersons or aspiring sportsmen was very much
relevant. Adidas gained core competency in sports goods by means of remaining
i n constant touch with sportspersons and identifying their needs. This competenc
y
h as given adidas a competitive advantage over its
competitors. Later on, the company diversified into sports equipment, apparel
a nd other accessories, whilst still remaining true to its core brand values. To
further support its positioning, adi
das
associated itself with major sport events such as the World Cup, Olympics
Committee or sponsored entire sports teams, soccer being the main target. Over
the course of the following decades, the company retained its focus on sports
p erformance, technology and innovation. In the 80s / 90s, Adidas significantly
expanded its product base. To fully understand the positioning change adidas underwent, we have to take a slight detour and
explore the shift in people s lifestyle. As a consequence of various social and
economic changes, the number of office workers rapidly increased opposed to
traditional blue-collar jobs, resulting in people spending an increased amount
of time sitting behind the desk or computer. In order to compensate for the
lost time, eating was done in haste, often opting for fast-food restaurants and
other means of a life style generally considered as unhealthy . In turn,
people became more concerned about their health and were seeking for ways of
doing something for their body. The ideal choice was jogging or running. Adidas
recognized this niche, yet emerging market and targeted it with a new line of
p roducts which were still 8 
 
holding true to the company s values of top quality and high performance, but
w ere also visually appealing at the same time and positioned not as a product
for athletes, but for ordinary people for everyday leisure activities. Also,
the price was adjusted accordingly. In addition, the company introduced the
Adidas Style brand extension which targeted a broader audience with casual
street wear and ended up being responsible for as much as 20% of total brand
sales (the target groups were mainly Hip-Hop musicians and break dancers).
Nonetheless, Adidas was still also manufacturing top-line products for
athletes, continued to collaborate with them as well as to further sponsor
certain events and teams. However, due to unclear communicating of the
diversification mentioned above, the multiple line extensions led to a somewhat
inconsistent image of Adidas and a certain loss of credibility. At the present,
the main goal of the company is to clearly differentiate its products, balance
fashion credibility with sports performance and try to gain new customers in
each segment respectively. The Performance line returns back to Adidas roots,
emphasizing performance, sport spirit and quality. While the company still
remains a major sports events sponsor, it has also engaged in celebrity
endorsement and high profile associations as of lately. A few shining examples
could be David Beckham, Andre Agassi or Katy Perry. Adidas currently offers
products that are geared primarily towards the soccer, tennis and general
athletics markets. However, the company tries to penetrate the basketball and
b aseball industries which are highly popular in the
US, a major market where Adidas still loses to Nike. This is part of a global
f ocus shift from Europe where the brand has been a major market player for
decades to the rest of the world as well, where it does enjoy a formidable name
but not the position of a market leader though. The company has also recently
t aken steps to increase its marketing and advertising budget. The remaining
Adidas lines are advertised similarly with Style being in the center of the
attention. The company perceives the fashion market as the most promising one
a nd with the highest potential and tries to target it accordingly. In addition,
measures to communicate the distinctions between
individual lines are being taken. BRAND PERCEPTIONS Up to the 90s, the brand
perception was identic with the positioning. The brand was recognized by both
a thletes and regular people as a true sports brand and was, or, as the case may
be, wasn t purchased accordingly. Later on, the introduction of the new line
for sports enthusiasts was greeted with much pleasure, as was the Style
extension. However, the stylish and cool aspects of the products seemed to take
over the performance aspect as the time progressed and Adidas became more of a
fashion brand rather than a sports brand. We 9 
 
all might remember time when it was not at all unusual to see a person wearing
three stripes sweatpants on a regular walk to a store. Wearing Adidas products
almost became a status matter. To reverse this rather undesired trend, the
brand took the measures highlighted above (more distinct differentiation,
massive promotion of the Performance line). Nowadays, consumers perceive Adidas
products as of the finest quality, well-performing and
generally an ideal choice for sports products. However, it seems the general
notion is to prefer Nike over Adidas due to its more
a ggressive approach to advertising ( I vs. we ), earlier celebrity
endorsement, opposed to Adidas which has embraced it only recently and an unshattered brand image. It is debatable whether the
differentiation has or hasn t in fact harmed Adidas image as a true sports
brand, but it is almost certain the diversification should have been, and still
should be, communicated more clearly. The undeniable fact is that unless one
conducts a research on this very topic, one has no knowledge on what lines
Adidas offers and what each represents. Nonetheless, the products have always
b een perceived as reliable, durable and high quality which</sp
an>
is in compliance with the brand s positioning. SWOT ANALYSIS ADIDAS STRENGTHS
A didas is one of the world s most popular sports brand. Since it is a very
successful brand, it is easy to find numerous strengths which
were build up during its long history. In fact Adidas offers a wide range of
products in high quality. Consequently, it has managed to establish its
presence in more than 200 countries of the world, which has definitely
increased sales. When it comes to advertising, Adidas has a long tradition of
s ponsoring important sports events. Entering different sponsorships events such
as World Cup, the Olympics or Champions League has increased brand awareness
and strengthened its connection to sports. Brand recognition, especially the
three stripes, is high and well reputed. However, what makes Adidas the choice
of millions of consumers around the globe is its wide variety of products.
Whether someone is a professional or amateur athlete, or only wants to wear
comfortable clothes for leisure, Adidas always has the right product, tailored
for very specific needs. ADIDAS WEAKNESSES Often Adidas is perceived as a
European brand, connected strongly with the German heritage. However, nowadays,
when internationalization has gained a huge importance and Adidas itself has
penetrated the U.S. market, the pressure of competition is higher. Its strongest
competitor Nike is market leader in the U.S and it is present in different
events and 10 
 
campaigns. So overall, there is a limited exposure of the brand to the U.S.,
while brand awareness is rather lower than in Europe. Since Adidas has launched
lifestyle and fashion products in the recent years, its aim is to be recognized
not only as a sports brand. However, due to its long history related to
sportswear, it is rather difficult for Adidas to persuade consumers to perceive
it as a fashion brand. ADIDAS OPPORTUNITIES Nowadays, though
internationalization, companies are exposed to the global market which offers
i mmense opportunities and for a strong brand, such as Adidas, it should be even
easier to seize such opportunities. GIA announces that the global sports
and fitness clothing market is projected to reach US$126.30 billion by the year
2015, spurred by dramatic lifestyle changes, increasing sports participation
particularly by women, and demand for stylish, functional and versatile sports
apparel. In addition, with rapidly aging population, there is a definite
emphasis towards healthy lifestyle and activities such as sports, yoga and
jogging. This, thereby, offers a strong business case for sports and fitness
apparel, and is expected to play an instrumental role in driving future growth.
This crates the chance not only to increase sales worldwide through using both
e-commerce and retail outlets, but also to create new products, tailored for
the upcoming specific needs. ADIDAS THREATS In times of economic downturn and
i nsecurity even the strongest brands face difficulties. There may be an
increase of the prices of raw materials or a decrease in demand. Not only does
Adidas have to maintain stability in unstable times, but also face the thread
o f a very tough competition. It threatens Adidas in two directions. Firstly,
there is the increasing number of smaller or local brands that produce medium
q uality products at affordable prices. Secondly, the competition with Nike
could endanger the brand, especially the price war between the brands. Last but
not least, a brand such as Adidas has to face the problem of c
ounterfeits
w hich damages not only its image, but also affects sales. 
 
RECOMMENDATIONS To give recommendations to a strong brand such

a s Adidas is difficult. However, after a detailed audit of the brand we came up
with some humble ideas. Firstly, we would recommend Adidas to enter
sponsorships in events related to fashion or lifestyle, since they have decided
to produce lifestyle products, too. We think that it would absolutely help to
s tart associating the brand not only to sports. Secondly, we would recommend a
more 11 
 
aggressive advertising in the U.S. for both Adidas Original and Adidas
Lifestyle, because only in this way they will catch up with their strongest
competitor, Nike. In this case they would have to increase the advertising
spending for the upcoming years. Thirdly, we think that it crucial for Adidas
t o seize the opportunities offered by the increasing market for sports goods,
n ot only by increasing production and sales. Concentrating on the needs of
older consumers, which with the aging, population will make a relevant target
g roup in the future, in our opinion, will provide Adidas a <o:p></o:p></s
pan>

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<html xmlns:o="urn:schemas-microsoft-com:office:office"

< w:LsdException Locked="false" Priority="62" SemiHidden="false"

UnhideWhenUsed="false" Name="Light Shading Accent 2"/>

UnhideWhenUsed="false" Name="Light Grid Accent 4"/>

UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>

/ Style Definitions /

{mso-style-name:h <hgQ e;

class=SpellE>adidas</span> two main competitors: Nike and Puma. NIKE <span