Adidas is the sports brand, which was established with the mission to prepare the sports products and focus on the sports performance to help the athletes to perform at different levels. It has the sports heritage to target the trend-setters to involve in the sports activities and it also enhances the sport style to focus on cosmopolitan consumers to use their fashion oriented sportswear products. The company is focusing on top five activities like running, basketball, football, tennis and training. For its effective and global advertising campaign, the company started its advertisement with title of ‘Nothing is Impossible’ and it also uses key technologies to commercialize its products and participate in UEFA EURO European Football Championship 2004 and Olympic Games in Athens.
In the sports heritage, it is included with strategies like limited distribution of products helps to prevent the dilution of brand, which can play important role to get success and it will also launch new products in whole lifestyle market by taking the inspiration of unique heritage of brand in Olympic sports, basketball, football and tennis. Adidas has maintained its business relationships with NBA for its products like Dwayne Wade, Gilbert Arenas, Tim Duncan, The Houston Rockets and many more.
Adidas SWOT Analysis
• Adidas is well established sports brand, which has sound financial position.
• Adidas sponsored various international games to highlight its brand image and name across the world.
• Adidas focus on running, football, basketball, tennis games, which are worldwide games and played almost in all countries of the world.
• Adidas manufactured sports products for the players, which can help them in showing good performance.
• Adidas has sound brand name and enjoys its reputation.
• Adidas does not have complete global appearance, as it does not concentrate in small economies.
• The brand transports its sports goods to other countries, which involve enough transportation charges and it reduces its margin of profit.
• The flow of cash of the brand is not satisfactory.
• The sports brand needs to tap in various other international economies to enhance its business.
• Adidas needs to focuses on the cities like Mumbai as it has multilingual customer base.
• The brand should introduce its products in other emerging economies to boost its business.
• Adidas needs to set up its manufacturing plants in countries having sound economy, so that it can produce sports goods at comparatively cheaper rates.
• The brand has to face strong competition with rival companies in sports goods, which is great threat for this brand.
• Local brands provide sports goods at cheaper rates and attract attention of clients.
• The regulations and policies of the government can affect the business of the brand.
• The fluctuation in taxes and other duties affects the financial position of the company and also reduces the profit on the products.
The company is going to focus its attention on its consumers to improve their look, image, quality and feel for organization structure and products to get the expectations of consumers to give them values. The company has developed its different products, which can facilitate the athletes to wear them and attain excellent performance. Adidas is the global leader in sports goods and it also provides financial rewards to the employees and its shareholders.
Adidas is working in this market for creation of proper segments to launch and promote their new products. Now the marketing department is working hard for the identification of suitable segments and selects the best target to achieve it. It is divided into geographic and demographic segmentation to locate their market in cities, states, countries and region. In the demographic segmentation, it is located in family, age, gender, income, occupation, nationality, social class and religion.
In the behavioral segmentation, the consumers are divided into knowledge, attitude, response and use of product. The other behavioral segments are like user status, usage rate, loyalty, benefits and occasions. The consumers are also divided into segments of lifestyle, personality and values in the psychographic segmentation. The consumers are also divided into their attitude, activities and interests and it can help to analyze the personalities of the consumers.
If you keep in mind the quality of the product, then its targeted market is urban youth and adult people with the competition to lifestyle. The main objective of the company is to concentrate on the consumption of cities and urban areas to have excessive reach to the target market.
Product Differentiation and Positioning
The company is striving hard to look original with its products and consumers want to maintain it. The consumers like to have motivational method to meet the needs of consumer and they want to be diverse and feel contentment with the standard of the product. The company wants to market its products and sell them in large number so that they can raise market share. The company has dominant share in the sports goods industry and they want to maintain the market competition. The company adopts the Porter‘s generic strategies in the market so that they can get maximum market share.
The company is looking for the suitable places, where they introduce their sports goods. As this is the multinational company, so they look for the cities having multi languages and diverse population, which can be good place for the launching of their sports products. Adidas is setting up the exclusive stores to provide their goods direct from the company. The outlets can also get the products of this company through big distributors in the market. The clients can have another option to place order online and company manages to provide its products to the clients.
Adidas is big company and its products are well-known among its users due to their designs, styles, and promotions and these sports products are available at the competitive prices. Its various products like Puma, Reebok and Nike are excellent due to their designs, so they are provided at comparatively higher rates than other sports goods. The cities like Mumbai has diverse consumers and have different varieties of products in the market and large number of people visit these markets. If the price of the product is suitable then it can attract number of clients and allures the customers to buy them.
Adidas has adopted the strategy to impress its customers and deal with its target customers. As most of the people of any country belong to middle class and these are the main target customers of any company. Then company needs to provide their products at the reasonable rates and try to attract more and more people through their advertisements and publicity. They manage promotional campaigns, free gift coupons, offers on festivals, and marketing schemes to attract most of the clients.
Adidas has developed its business across the globe, so it has to adopt the global marketing strategy and domestic marketing strategy. As the domestic market is limited, so their main focus is international market, to provide bulk of their products to other countries. The company focuses on different international events like FIFA football world cup, tennis tournaments, and basketball international competition, and Olympic Games, where they support and sponsor the games to introduce their products and study the multilingual market having diverse customer base, which is the extensive market for the showcasing of their sports products.
Return of Investment
The companies and firms perform different marketing strategies so that they can grow their business and get profit from different business expeditions. The companies allocate the funds for these marketing strategies and allocate the funds for marketing communications. Then they get the desired result and return of their investment, which is expected to get after one year of its business activities.