analysis of the global brand adidas

Impossible is Nothing

Analysis of the

global brand

Adidas

The objective of the Presentation

To identify a global brand and critically analyze it with contrast to

the related theories and frameworks

The structure of the Presentation

Introduction to the brand

Situational Analysis

STP Strategy used by Adidas

International Marketing mix

Global issues

Recommendations

Introduction to the brand

Adidas is the biggest sportswear manufacturer in Europe and one of

the biggest in the world.

Owns a global market share of 35%

The company that started in 1924 is one of the favorites for many

athletes.

Adidas has also won the trust of many customers as a strong and

reliable brand.

Their core products are Footwear, Clothing, and Accessories

History of the brand

Adidas began when Adolf Dassler began making

shoes in his mothers wash kitchen in Germany in

1924

The first name for Adidas was Gebrüder Dassler

Schuhfabrik (Dassler brother shoe factory)

‘Adi Dassler adidas Sportschuhfabrik’ was

registered on 18th August 1949 and set to work with 47 employees in the small town of

Herzogenaurach.

Vision and Mission Vision

“To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology"

Mission

The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.

We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market.

We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.

We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.

We are dedicated to consistently delivering outstanding financial results.

Vision and Mission Vision

“To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology"

Mission

The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.

We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market.

We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.

We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.

We are dedicated to consistently delivering outstanding financial results.

Corporate Mission Strives to be the leader in sports gear and apparel

Improving operations

Core Values

Performance

Passion

Integrity

Diversity

Situational Analysis

Situational Analysis

PESTEL Analysis

SWOT Analysis

Level of Internationalization

Market demand

Porter’s five forces

PESTEL Analysis POLITICAL

Issues such as their employees’ health and safety

ECONOMICAL

The outsourcing done to Asian countries

SOCIAL

Targeting mainly the European countries

TECHNOLOGICAL

Using quality information systems and R&D in sportswear

ENVIRONMENTAL

matters such as animal rights

LEGAL

Adhering to the advertising standards and the sales and supply act

Labor laws

SWOT Analysis

STRENGTHS

Long heritage and big brand value

Supplier for major sports events

Diversified product range

Strong and innovative marketing

Has a workforce of over 45,000 employees

SWOT Analysis

WEAKNESSES

The products costly due to innovative technology or production method

Stiff competition and similar big brands means customers have high

brand switching

SWOT Analysis

OPPURTUNITIES

Adidas generates close to 60 new foot-friendly designs each year.

The company can venture into making more stylish designs and cuts

Tie-up with emerging sports teams/clubs/players internationally

Brand building by setting up sports academies

SWOT Analysis

THREATS

Other brands offer more styles and varieties, thus more competition

Threat from other competitive brand who produce sports equipment

and accessories at a lesser cost

Pirated/fake imitations affect brand image

Level of Internationalization

Market Demands

Global market share of 35%

Product line is widely ranged

Porter’s 5 forces

DEGREE OF RIVALRY

The rivalry among existing competitors is pretty high in the sports and

footwear industry as compared to other similar industries.

THREAT OF SUBSTITUTES

The substitutes of Adidas products such as NIKE, PUMA etc.

Switching cost is low there is a higher tendency to lose its customers.

Porter’s 5 forces

BARGAINING POWER OF BUYERS

Bargaining power of Buyers of Adidas products tends to be high. One of

the reasons for this is that the buyers’ concentration is high, that means

they buy large volumes.

BARGAINING POWER OF SUPPLIERS

The suppliers for the Adidas products are available in plenty and so the

bargaining powers of suppliers are low.

BARRIERS TO ENTRY

But such an established brand like ADIDAS will not be affected much.

The entry barriers to the sportswear market are comparatively high.

STP Strategy

STP Strategy

SEGMENTATION

Young men, women and children who have passion for fitness and

sports

STP Strategy

TARGETING

Mostly youth between ages 13 – 30

The consumer is from upper middle and upper class

The consumer is working & love sports

The Consumer is fashionable and stylish

STP Strategy

POSITIONING

The shoes are comfortable as compared to any other in the segment

The apparels are stylish & designed to suit the consumer need

The eye gear and the perfumes are serving the niche segment

International

Marketing mix

Products

Caters for different needs and wants of consumer – (e.g.:

Sportswear and fashionable items.)

Uphold its brand by constantly upgrading and improving products’

innovative features and quality to satisfy its customers.

Adidas has established itself as a strong brand for sports apparels.

Price

Adidas is a shopping product.

Able to penetrate the market as it is cheaper than its competitors,

which is penetration strategy.

Uses market skimming for some of the other products offered in the

product mix (e.g.: white T-mac 4 shoes is being charged at a higher

price than the other color of the same version).

Place

Distributing some of the Adidas products to the various sporting

outlets

Adidas outlets all over the world.

Online purchasing through the internet.

Promotion

Promotion objective: Become the NO.1 sporting brand in the world

PROMOTION MIX

Advertising commonly through the mass media.

Through the use of the internet.

Point of Sale.

‘Impossible is Nothing’ campaign by using various celebrities and sports

personnel as brand ambassadors

Global issues faced

by Adidas

Europe

Slow Growth

-Due to rising costs of resources

China

Big Boom

-Due to increasing popularity of sports

Criticized and allegations of sweatshop labor usage

Criticized for productions done from animal skin

Recommendations

Short Term

Identify market dynamics and change accordingly

Keep up with endorsements and Sponsorships

Long Term

Increase R & D

Advance further in Technologies

Keep supporting diversity

Target more into women’s wear

Thank you