Adidas Strategic Report Adidas Illustrated Strategic Report Essay

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Adidas Strategic Report


Illustrated Strategic Report

The manufacturing concern which was selected by me is Adidas group. Adidas started its operations in 1924 by Rodulf Dassler. It was the first company who created running and training shoes and sport garments in the world without the use of electricity. These shoes were handmade. From now onwards, it is the second largest shoes producer of the world after Reebok. Adidas has extended its operations by entering into the business of sports goods as well (Adidas Group History 2013).

Adidas group is a giant group in the field of shoes and clothes manufacturing. It has big profits, great reputation in the market. According to the group policy and directors of the group, company never compromise with the standards designed for the welfare of people and societies. As my task is to review the policies and procedures related to marketing strategy, so the marketing strategy related to employees and harmless environment has been reviewed and examined accordingly.

Part 1

Market Trend


Adidas has an edge over its competitors like Nike because the trademark of the company is quality with style as compare to its competitors. Adidas is surviving in the market due to several reasons but there are many areas in which it can still excel to prove itself the No.1 brands of the world. It has also purchased its rival Reebok 5 years back. Secondly, Adidas has strong brand recognition and awareness in the international market. It is due to sponsoring of high profile athletes such as David Becham, Yao Ming and Real Madrid etc.


One significant weakness of Adidas is its inefficient use of technology for promoting production and innovation in the market. At the moment, Adidas is not focusing on the less established, if it focus on these markets then it can attract a large number of consumers in a shorter period of time so there is more potential in the market such as third world countries or much populated countries of the world such as India and Pakistan. Another important issue of Adidas is weak communication with the customers (Kotler & Keller 2012, pp.70-74).


If it will not make key changes in its approach then it cannot grab hold of the market. In order to get more loyal consumers in the clothing other than soccer, it needs to take proper changes in its strategies. If it doesn't take necessary then the company will not drawn but it will definitely be dominated by its competitor Nike greatly. Another great threat is Chinese homegrown sportswear. An economic is another threat for Adidas sportswear in a great way because of not adopting significant changes as per the duration of recession (Babiak, K., & Wolfe, R. 2006, pp.214-222).


We have few recommendations that if company follows then it can create a new base of loyal customers in sports clothes market and also dominate over its competitors by penetrating greatly.

Adidas should become more socially responsible company by improving supply chain management practices. Secondly, company should properly on the female market of active women who loves to have stylish sports brands and hate pink model.

Company should not put heavy resources and money over the promotion of its clothing brands in the niche market, it is also needed to streamline its product offerings from time to time. The fourth recommendation is in the field of functional communication and technological awareness, company should not promote and advertise Adidas brands as a whole but it should promote and commercialize brands specifically one by one separately (Heere & James 2007, pp.319-337).

Part 2;

Critically evaluate the market trend you have identified and demonstrate why and how it is relevant to your chosen brand.

Brand identity, and brand USP (Unique Selling Point)

Brand is one the important marketing term that has been explained with respect to name, symbol, quality, popularity and features which identify the services or goods of sellers. Adidas is one of big names in sporting goods these days; it leads in sporting goods and building several brands for sport and sporty lifestyle. Their strategies are "performance as a core group value, leveraging opportunities, across our brand portfolio, leading position innovation and design, share holder values and customer distribution." Adidas is also searching for the new ways of business for this purpose they offer sporting goods such as footwear, equipment and other accessories ((Adidas Group History 2013).

Unique selling point stands at the point where companies are stronger in the market.

After a long struggle and hard work, Adidas have reached a certain stage and it is known in the international market as a brand, we can also say that it is a recognized brand worldwide. The main strength of Adidas at this time as its growth in fashion oriented products. Adidas is continuously come with innovations in all its products through quality and availability. Target Customers always love to buy all goods of Adidas due to its commitment and satisfaction for all.

For the betterment and selling of the product company can take advantage of entering into the Asian market. Adidas also lies in entering in the female market which provides an opportunity for Adidas to compete head to head with Nike in an unclaimed market (Mahony, Madrigal & Howard 2000, pp.15-25).

In short, the major key selling point of Adidas is its quality products, long lasting usability, style, reasonable prices and strong word of mouth in the eyes of sport lovers and very popular athletes.

Clearly define and identify the target market segment of your chosen brand.

The market size as well as the all sport equipments such as sportswear, shoes, play balls etc. has witnessed almost same level of growth all over the world. This stability is specifically prominent in American and Europe countries while in Asian country such as China, the growth were seen in increasing level which was 4%.

Adidas has targeted market in different segments and the main segment of the company is lifestyles such and the followers or audiences such as college age student, the hip hop community and the athletic. If we talk about the athlete lifestyle, it is heavily consists of athletes and a wide range fans of sports, style and their performance. Adidas spend most of its time and tangible resources and the most tangible resource is soccer, it is the most important segment within the athletic lifestyle. Soccer is the most popular sport worldwide which makes good financial and marketing sense.

The teenage student and the hip hop community both have the focus on style. Most of the consumer of this segment share similar lifestyles and there is also an emerging segment that has much more potential for the future growth and profit.

The needs of the brand's target consumer

The Adidas consumers have grown up with its media which is heavily connected to internet. Consumer has the ability to research product in a very short time with online platforms such as facebook and twitter. Consumer makes their final decision with the availability and convenience of the product.

"Adidas is aware of availability factor and a process of refining of distribution of proportion, concentrating on expending its outlets and improving retail relationship"(innovation Leaders). Adidas offer three features of main segment, the performance, original and style.

For offering complete customer value products, company is creating awareness for the customer to buy product of the company available at all types of virtual and non-virtual way in the market. The Adidas customer engaged through the electronic media whether that is posting the humorous videos on you tube or sponsoring an event.

Part 3

Using the 4Ps of the marketing mix as a structure, sum up the strategic marketing actions needed for the brand to respond to the identified market trend:


Price, brand, comfort, style, performance and availability are the main six features of products of Adidas in the market. For the performance, Adidas targets Athlete and college students. However these athletic are usually willing to pay higher price for their customization and ingrain their favorite number into the performance footwear and hardware, they also want their ordered products to be comfortable and their customer values should be provided from style, price and performance. The sport style of Adidas is a mix of hip-hop mixture and college age demographic (Mason 1999, pp.402-418

In the final production, Adidas offer its style line, people wear sportswear which leading a demand of sportswear and tends and move people to the sports style. Adidas provides everything to its target market such as fashionable sportswear that can be wearing outside the gym which indicates the successful sports lifestyle of Adidas.


Price plays an important role in the product extensions. Prices of any brand or company are based on the top set on the customer values with pricing strategies. If we talk about the strategy of the price quotation of Adidas it helps to build a brand and play a bid role for the sportswear industry. The prices of…[continue]

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