This strategic report examines Adidas Group across four analytical dimensions. It opens with a SWOT analysis identifying the brand's key strengths — including global recognition and high-profile athlete sponsorships — alongside weaknesses in technology adoption and customer communication. The report then evaluates Adidas's brand identity and unique selling proposition, before defining its target market segments, including athletes, college-age consumers, and the hip-hop community. Using the 4Ps framework, the report outlines strategic marketing actions covering product, pricing, promotion, and distribution. Finally, it applies stakeholder theory to assess Adidas's corporate social responsibility performance in the areas of labor welfare and environmental standards.
The manufacturing concern examined in this report is the Adidas Group. Adidas began its operations in 1924, founded by Rudolf Dassler. It was among the earliest companies to create running and training shoes and sports garments without the use of electricity — all products were handmade. Today, Adidas is the second-largest footwear producer in the world. The group has extended its operations into the broader sports goods market (Adidas Group History 2013).
Adidas Group is a giant in the field of footwear and clothing manufacturing. It generates significant profits and carries a strong reputation in the market. According to group policy and its directors, the company never compromises on standards designed for the welfare of people and societies. This report reviews policies and procedures related to marketing strategy, with particular focus on strategies relevant to employees and environmental responsibility.
Adidas has an edge over competitors such as Nike because its trademark is quality combined with style. Adidas continues to survive and grow in the market for several reasons, yet there are still many areas in which it can excel further to establish itself as the world's number-one brand. The company has also acquired its former rival Reebok. Furthermore, Adidas has strong brand recognition and awareness in the international market, driven largely by sponsorships of high-profile athletes such as David Beckham and Yao Ming, as well as clubs such as Real Madrid.
One significant weakness of Adidas is its inefficient use of technology to promote production and innovation. Currently, Adidas is not focusing sufficiently on less-established markets. By targeting these markets, the company could attract a large number of consumers in a shorter period of time, given the potential in countries such as India and Pakistan. Another important issue is weak communication with customers (Kotler & Keller 2012, pp. 70–74).
If Adidas does not make key changes in its approach, it risks losing market share. In order to cultivate more loyal consumers in clothing categories beyond soccer, the company needs to revise its strategies accordingly. Without these necessary changes, Adidas could be significantly dominated by its competitor Nike. Chinese homegrown sportswear brands represent another growing threat. Economic downturns also pose a threat, particularly when the company fails to adapt its offerings in response to recessionary pressures (Babiak & Wolfe 2006, pp. 214–222).
Several recommendations can help Adidas create a new base of loyal customers in the sports clothing market and further dominate competitors through deeper market penetration.
Adidas should become a more socially responsible company by improving its supply chain management practices. The company should also focus properly on the female market — specifically active women who value stylish sports brands but reject overly feminized product designs.
The company should avoid allocating heavy resources toward promoting its clothing brands in niche markets and should instead streamline its product offerings on a regular basis. In the area of functional communication and technological awareness, Adidas should promote its brands specifically, one by one, rather than advertising them collectively as a single entity (Heere & James 2007, pp. 319–337).
A brand is an important marketing concept defined through its name, symbol, quality, popularity, and features that identify a seller's goods or services. Adidas is one of the biggest names in sporting goods today, leading in the space and building several sub-brands oriented around sport and a sporty lifestyle. The group's stated strategies include: "performance as a core group value, leveraging opportunities across our brand portfolio, leading position in innovation and design, shareholder value, and customer distribution." Adidas is also continually exploring new business avenues, offering sporting goods such as footwear, equipment, and accessories (Adidas Group History 2013).
A unique selling point (USP) is the position at which a company is strongest in the market. After years of sustained effort, Adidas has reached a stage where it is recognized as a global brand. Its current strength lies particularly in the growth of fashion-oriented products. Adidas continuously innovates across its product lines through quality improvements and broader availability. Target customers consistently choose Adidas products because of the company's commitment to customer satisfaction.
For future growth, Adidas can take advantage of the Asian market. The female market also presents a strong opportunity for Adidas to compete directly with Nike in a relatively unclaimed segment (Mahony, Madrigal & Howard 2000, pp. 15–25).
In summary, the major key selling points of Adidas are its quality products, durability, style, reasonable pricing, and strong word-of-mouth among sports enthusiasts and professional athletes.
The global market for sports equipment — including sportswear, shoes, and play balls — has experienced broadly stable growth worldwide. This stability is particularly evident in the United States and Europe, while in Asian countries such as China, growth reached approximately 4%.
Adidas has targeted distinct market segments, with its primary segments built around lifestyle categories: college-age students, the hip-hop community, and athletes. The athletic lifestyle segment consists heavily of competitive athletes and a wide fan base that values sports, style, and performance. Soccer represents Adidas's most significant investment of time and resources within the athletic lifestyle segment. As the world's most popular sport, soccer makes strong financial and marketing sense for the brand.
The college student and hip-hop community segments both share a focus on style. Consumers within these segments share similar lifestyle orientations, and there is also an emerging segment with considerable potential for future growth and profit.
Adidas consumers have grown up with media heavily connected to the internet. They can research products quickly using online platforms such as Facebook and Twitter, and they make purchasing decisions based on product availability and convenience.
"Adidas is aware of the availability factor and has undertaken a process of refining its distribution, concentrating on expanding its outlets and improving retail relationships" (Innovation Leaders). Adidas offers three core features across its main segments: performance, originals, and style.
To deliver complete customer value, the company is building awareness and ensuring that products are accessible through both virtual and physical retail channels. Adidas engages its customers through electronic media — whether by posting engaging videos on YouTube or by sponsoring sporting events.
"Product, price, promotion, and distribution tactics"
"CSR policies, labor standards, and environmental awards"
Adidas and other sport-related organizations have come to understand the importance of CSR practices related to labor rights and standards from outsourced suppliers, though this awareness was largely driven by pressure from the anti-sweatshop movement campaign. All of the awards and assessments discussed in this report indicate that Adidas is performing well in implementing CSR policies. Sport organizations as a sector will not automatically develop strategies aligned with CSR principles unless external pressure compels them to do so. Adidas has recognized the challenges related to employees and the environment and has begun working seriously on CSR policy implementation as a result of the sustained pressure applied by anti-sweatshop movement campaigns.
You’re 51% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.