Brand Study - Adidas

COMPANY PROFILE
• Founder: Adolf (Adi) Dassler
• CEO: Herbert Hainer
• Headquarters: Herzogenaurach, Germany
• Area served : worldwide
• No. Of employees: 57,016
• Website : www.adidas-group.com
 HISTORY
• Adidas was founded in 1948 by Adolf “Adi” Dassler, following
the split of Gebrüder Dassler Schuhfabrik (Dassler Brother
Shoe Factory) between him and his older brother, Rudolf.
• During the 1936 Summer Olympics held in Germany, Adolf
persuaded U.S. Sprinter Jesse Owens to run using his
company’s spikes. Owens went on to win 4 gold medals.
• Differences in political ideologies between the two brothers
during the World War II tensions between the two brothers.
• They finally split in 1947 and went on to form adidas and
Puma.
• Now owns brands like Rockport, Reebok, Taylormade, etc.
LOGO
 PRODUCT CATEGORIES

FOOTWEAR SPORTING GOODS

ACCESSORIES CLOTHING
 WHAT IS THE
MARKETING MIX OF ADIDAS ?
 PRODUCT RANGE
PRODUCT

Footwear
Clothing
Accessories
 
 
A New Strategy: Limiting Supply
• Adidas is actually limiting the availability of popular
shoes, example : Ultra Boost

• Proactive move to avoid overexposure and excessive

discounting of Adidas’ products.

• The number of discounts on Adidas products has

increased recently, and the decision to limit the supply
of some key products may be a response to the
growing pricing pressures generated by excessive
supply.
 Digital and technical
Adidas’s five-year strategy that issued in 2015
has the name “Creating the New”. Describing
itself as a digital company, Adidas wants to be
the world’s best sporting apparel brand.

subsequent digitalization as the key

part of their marketing strategy The
company spends 90% of its
marketing budget on digital
campaigns and social media.
 High-speed
manufacturing
• Digitize production process with 3D printing
technology and robotics at Speedfactory in
Ansbach. Futurecraft 4D shoes that crafted
with light and oxygen are one successful
example of the brand’s advanced technology.
 
• Deliver the most innovative and personalized
running shoes for every athlete.
PRICE
1.The target customer is the upper middle class as well as high end
customers.
 
2. Adidas uses skimming prices as well as competitive pricing
 
3. For run of the mill products, Adidas uses competitive pricing
 
4. Products which are newly introduced are uniquely designed, Adidas
uses skimming price strategy
 
5.Apparel’s of Adidas constantly use skimming price and are higher
priced due to brand equity of Adidas in the apparel’s market
 
 PLACE
- Manufacturing > Adidas outlets > End customer
- Manufacturing > Distributor > Multi brand showrooms
- Manufacturing > Online fashion websites / Adidas website >
End customer
 PROMOTION
Social media
Social media has been the focus of attention for the brand. Adidas remains active through the traditional channels,
its own website as well as the social media.

Adidas Instagram Profile

Adidas has active Facebook and YouTube
channels. Adidas original and Adidas football have
more than 20 million followers 

On Twitter, the brand has several accounts active

including Adidas original, Adidas US and Adidas
football. Results are showing in the form of
improved financial performance. 
 Collaboration
• Adidas backed powerful endorsement contracts with some
powerful non-athlete superstars
• the brand that its competitors like Puma followed the same suite
and signed-in famous personalities include popstar Rihanna for
their line of sportswear.

• The brand also collaborates world-famous football players, athletes

and singers to inspire. “Calling All Creators” campaign
 Relationship with
consumers
• The brand takes every touchpoint like
mobile, social and retail that consumers can
interact to provide a consistent experience.

•  By taking insights from digital analysis and

Big Data, Adidas tries to be everywhere its
consumers are

• An end-to-end customer experience that

enables the sales team to guide the purchase
decision through data visualization and
connected hardware
 OPEN-SOURCE
INNOVATIONS

• Adidas, ranked No. 3 in global sales in the Apparel/Accessories

category in Forbes World’s Largest Public Companies 

• behind only Christian Dior/LVMH and Nike

• 2024 it would use only recycled plastics in all its shoes and clothing.

• This strategy is not just going to have an impact on Adidas but also
have profound implications in the overall fashion industry.
 BRAND IDENTITY PRISM
Traditional, conservative,
Sports and fitness Collective

Quality & heritage European, Traditional

- True sportsmanship Relates more to

- A good team player competing than
- Strong work ethic to winning
 BRAND PERSONALITY

• Brand personality is how the brand is perceived

by its consumers and how the brand portrays
itself. Adidas personality is exciting. They pride
themselves on providing the best athletic
footwear.
• They have an appeal to all athletes no
matter what sport. They have successful
products in every major sport around the
world. Baseball, basketball, football soccer,
tennis, golf tracks, and the list goes on and
on. Since they create a personality of being
a cool, successful athletic brand, athletes
want Adidas.
• Another thing that supports their
brand personality is the amount of
world class athletes that endorse
Adidas. Sonny bill Williams, Sania
Mirza, Hima Das are just a few of the
top athletes signed with Adidas.
Adidas is unique in the fact that they have a
huge target market. They target athletes, but
they don’t focus on a specific age range.

Adidas’s brand personality is athletic,

authentic, stylish, cool, trustworthy,
practical, customer focused.
 BRANDING STRATEGY OF ADIDAS
OPEN MINDED ATTITUDE

•Launch commercials/ads
• Paralympics achievers in their ads like
NICK VIJUCIC who is a great motivational
speaker and a sportsperson itself
• supporting social issues
•Use of the colour black and white

INTERACTION WITH THE

AUDIENCE

•Sports enthusiasts front end staff

•ADIDAS can interact with the customers
through sports event like Paralympics,
Wimbledon and world cup
• Collaboration with the achievers for
interactive sessions with the customers
WISE PRICING STRATEGY

•Adopt a pricing strategy(competitor based

pricing) to compete with its competitor like
DECATHLON who already has become the second
largest selling brand in India
• Launch of the new product range with
psychological pricing strategy

SOCIAL ROCKSTARS

•Collaboration with charity clubs like FREE

MANSION’S etc
•Events/campaigns in India specifically
•Launch of ADIDAS club in India and promote it
through social media platform
SUSTAINAIBILITY ORIENTATION

•Use of the 4 R’S REDUCE,REUSE,RECYCLE and

RECOVER
•Waste prevention techniques
•Water waste technique that will convert to
POLYMER and finally to product
 BCG Matrix of Adidas

STARS QUESTION MARK

- Shoes Reebok and Adidas -Taylor made and Rockport
-High market share -low market share, high growth
-high market growth
Market growth

-large volume of sales

CASH COWS
BCG DOG
-Clothing and apparel -Hats & Sunglasses
-high market share -low market growth
-low market growth -low market share

Market share
 PORTER’S FIVE FORCE MODEL

Company Rivalry
• High threat –competitors
• Good Quality Threat of new Entrants
Bargaining power of Buyer • Switching cost • Moderate Threat
• Price sensitive ( low switching • Customer Loyalty • Capital – R & D, Marketing,
cost) Advertising
• Online shopping • In house/outsourcing bargaining of
• Cost of innovation contracts

PORTER’S
FIVE
FORCES
MODEL
Bargaining power of Supplier Threats of Substitutes
• Low threat
• Low threat
• Several small suppliers
• Performance of substitute
• Investment in suppliers technology
• Cost of switching
• Recycled polyester (price slowly
• Nike, Puma
increasing)
 S W O T

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Global presence • Narrow product line • Product innovation • Counterfeits

• Innovative business • Price points • Increasing purchasing power of • Competition from local
strategies • Absence of brand loyalty customers and international
• Collaboration • Brand endorsements • Collaborations:  players
• Strong lineage
PESTLE ANALYSIS
  
POLITICAL ECONOMIC SOCIO-CULTURAL

• Adidas supplies, ships, and • Unemployment, wages • Adidas changes designs of

distributes their products
worldwide. This requires
them to extend
international supply chains
and follow political
procedures when selling
products online
• Adidas is manufacturing
• Each country abides by
their own taxation system.
Adidas is required to abide
by these rules for each sale
and each product
distributed overseas
rates, taxation, inflation
and interest rates are
those economic
factors that can affect
Adidas performance and
profitability
more than 50% of products
in China. Adidas must play • Adidas also supports the
smart with the price of
materials. But they face
continuous challenges
when importing/exporting
goods
their products. Designs
match the interest of
consumers. Products are
often available for any age,
gender or lifestyle. But
their core focus group are
health-conscious buyers
with a love for sports
Olympics, which allows
them to leverage
marketing opportunities
and catch the eye of new
audiences around the
world

TECHNOLOGICAL
• Though Adidas has
opened few Speed
factories to speed up
production. It still needs to
expand this technology to
other factories in other
locations. Furthermore it
should incorporate data
collection integration
technology in its products
to measure performance
• Adidas must address
these technological
challenges to increase
productivity, market share
and brand loyalty
LEGAL
• Adidas has ownership of
intellectual properties and
IP systems. They also have
design patents, defending
their right against copiers
and infringement. The
patents also serve as legal
protection to end
counterfeit businesses. As
a big company, they
naturally have trademark
production
ECO-ENVIRONMENTAL
• Adidas decreases
environmental impact. It’s
their duty to monitor
hazardous substances and
eliminate them. This may
be why they offer natural
materials in their
products
• They follow ethical
business practices by
committing to ensure
supplies are following
regulations in every
country their products are
manufactured in
MARKETING PLAN

Marketing Plan for Indian Market for the coming 5 years (2020-
2025

Based on BCG Matrix, Poter’s five force model, PESTEL, SWOT &
Value

Detailed Marketing Plan consisting Marketing Mix

 OBJECTIVE

• Market penetration- achieving market shares across the globe in which Adidas
compete.
• Market development- increasing into new business markets and reacting to
consumer segments.
• Product awareness- developing visibility and consciousness of all brands
giving consistent and clear support and messaging product inventiveness at
point-of-sale
• Focusing on New Market Segment: Value Segment
 MARKET SEGMENT
GEOGRAPHIC SEGMENTATION: Urban and Semi-Urban Cities

BEHAVIORAL SEGMENTATION: Gym regular users, Sports lovers, Street Fashion lovers, Athletes
Image seekers, Brand freaks

PSYCHOGRAPHIC SEGMENTATION: Achievers, Well-experienced, Hard workers, Goal achievers

DEMOGRAPHIC SEGMENTATION
AGE: 15-40
SOCIAL CLASS: Middle, Upper Middle, Upper Class & Lower Upper
INCOME LEVEL: INR 50,000+
GENDER: Both male and female
 MARKETING MIX

PRODUCT:
• Continue Premium Technological & Sustainable Products with new Value Segment Products and Limited Addition
Collaborated Products
• Market and sell more products at the greater rate and raise the market share
• Differentiation Leadership Strategic Product Positioning (Porter’s Generic strategies)

PLACE:
• OMNI-Channel Retailing
• Focusing more on Tier-2 & Tier-3 cities along with Tier-1
• Availability through EBOs, MBOs, App, Website & E-commerce Marketplaces
• Stores dedicated to Personalised Products

PRICE:
• Premium Pricing for New Technological Products
• Economy Pricing for New Value Segment
• Pricing Strategies for Product Line
• Add-on Pricing for Personalised Products
 PROMOTION & MARKETING
• Omni Presence
• Adidas as a Technological Advance Brand
• Integration of Global Marketing with Indian Marketing
• Introducing New Young Faces & Influencers (Kyrie Irving & Neymar Jr. etc.)
• Re-Positing of Brand from ‘Sports’ to ‘Sports & Style’
• Limiting Supply of Special Luxury Collaborated Product Lines
• Going back to early 21st century's Guerrilla Marketing Strategies
• Focusing on Experiential Marketing through Events
• Co-Branding Strategies with Designers, Personalities & Retailers
 Return of Investment
• Adidas is capable of providing the funds for marketing communications
• Successful launches of New Technological & Sustainable Product Line for the
time period
• New Limited Luxury Collaborated Product Lines
• Increased Rate of Sales & Sell Thru of products
• Penetration in New Segment of Value Products