In a globalized environment, where the competition has never been so intense, sportswear firm Adidas aims to become the leader in the sports footwear market.
In order to reach this goal, this group focuses on the marketing campaign, which reflects the company's culture and passion with respect to technology.
The company, under these two entities, positions and differentiates itself on two growing segments:
-Performance shoes: This segment was created for athletic consumers and technology employed by Adidas has helped people passionate about sports to reach their goals.
-Fashionable shoes: The range of products under this segment has been developed for non-athletic consumers, in order to compete with Nike, which is the leader in the footwear market.
With 465 products, from the entry-level to professional shoes, distributed in five continents, Adidas enjoys significant brand awareness and an enormous sales force. Combined with numerous celebrity endorsement contracts, such as those featuring David Beckham or the All Blacks, the company has a strong communication force.
Nevertheless, the sales of high commodity prices and the increase of raw material prices, associated with the current exchange rate between Europe and the US are some of the weaknesses for the firm.
Moreover, a decrease of profit by 10%, a raise of operating expenditures during 2008 to 2009 due to Reebok's acquisition in 2005 and a decline of capital, represents some threats to the brand on the financial side.
Finally, with the help of current tendencies of well being and good-health in Occidental societies (which is gradually spreading to emerging markets), Adidas must perform a series of activities that will act as a medium for this group to become the leader in the sports footwear market. This group believes in the motto “Impossible is nothing”.
Adidas is one of the most important companies in the global sportswear market. With €10,381 million in turnover and €508 million of operating margin in 2009, Adidas has a strong position among the richer companies of the world and is present in the DAX-30 (a blue chip stock market index consisting of the 30 major German companies) stock exchange.
Adidas's footwear strategy is clearly established and its marketing department is very efficient and this makes it easier for studying the marketing aspect of the firm. In addition, we agree with the positive ideas the group promotes, such as encouraging people to stay fit, to play, to look fashionable and so on.
The three-stripes firm's footwear enjoys large brand awareness, is present in five continents and is the leading player in the market for football boots. The company was the official sponsor of the FIFA cup in 2010 and has signed numerous endorsement contracts with stars such as David Beckham, Lionel Messi, etc.
Much information is available concerning the group's sports footwear tactic with respect to marketing strategy, financial analysis, etc. The official website of the Adidas group contains plenty of data about the financial reports and the official strategy.
Tags: Sportswear market, Adidas marketing strategy, Adidas global positioning
[...] That means the Some accusations have been leveled at the Adidas product portfolio features brand regarding poor working conditions the best shoes on this market. in Adidas' Asian factories. In order to be more efficient in sales strategy, the concept of management is undertaken on a very serious level. Adidas offers a wide range of footwear products online. Resounding success in Europe which allowed the brand to raise its objectives. As Adidas acquired Reebok, it hopes to be well positioned in the women's athletic shoes market in the US as Reebok had been the leader. [...]
[...] Marketing objectives Adidas wants to shore up its leadership in Europe and its shares in the US footwear market. It also plans to be a high volume performer like Nike which is the current leader in this segment. To compete with Nike, Adidas needs to constantly strive to maintain and increase its strength with respect to its position in the sports footwear and apparel market. It has to imitate the competition with respect to the brand's strength, uniqueness and at the same time, innovate in order to be different. [...]
[...] The three segments are: Performance Pleasure Style Performance Adidas has been, from the beginning of its operations, has been recognized as the brand of excellence in the sports community. Indeed, there are no other brands which have such a strong association with sport. It can be seen by the way the Adidas products are so appreciated and recognized by the sports community, as shown by the numerous athletes in every kind of sports who wear Adidas. This can be explained because Adidas invests immense efforts and money to manufacture sports shoes which can perfectly suit every kind of sports activity and helps the athlete to perform optimally. [...]
[...] Puma followed in the footsteps of Adidas and Nike by engaging in a massive marketing campaign ahead of the FIFA World Cup 2010. Puma sponsored seven teams, mostly from the African continent in addition to former World Cup winner Italy. To understand better the market shares of each brand, the following pie chart describes the global market shares of various sports footwear brands. http://www.wikinvest.com/stock/Nike_(NKE) (It is important to note that this chart was created in 2005. Reebok is now a part of Adidas) It can also be relevant to a mapping (See appendix to see where Adidas is located / positioned relatively to its competitors in terms of price and technicality.Adidas and its competitors Its second competitor is Puma which has been created after a huge argument between the two brothers Dasler ; Adidas has to be careful about Puma because it has been buy by the french luxury group PPR and is winning little by little market shares. [...]
[...] This is the case when each season, a new version of a previous product is launched such as Adidas with its Predator football shoes. Finally, there is the Diversification Strategy which offers the company an opportunity to develop new products for new markets! This method is the most risky one, as there is no previous knowledge of the product or of the market. Thus, Adidas could use this strategy to produce a product that the company is not familiar with, to be sold in a new market. [...]
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