Adidas

Mission Statement

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.

Four theories of Excellence

Operational Excellence

4 Theories of Excellence

Strengths

Strengths

Legacy & heritage:

• established itself as a youthful brand
• high brand value since 1924
• made it a mission to become the world's best sports brand
• maintained a great image keeping it at a high level of popularity

Weaknesses

Premium pricing strategy:

• due to the use of innovative technologies and manufacturing methods
• shoes less afordable for middle class consmers and undeveloped regions
• keeps their prices usually higher than their competitors

Opportunity

Changing Lifestyle:

• product and design innovation
• change in taste and preferences are occuring
• education and lifestyles are changing economically

Threats

Increased competition:

• although Adidas is a global brand, there is extreme competition from Nike and Puma
• other brands offering more styles and varieties of shoes at a cheaper price
• puts pressure on overall sales

Segmentation

Segmentation

• Demographic and Psychographic Segmentation methods
• Demographic- grouping of consumers according to easily measured, objective characteristics
• 14-40 years old
• Adidas Neo- newest sub brand
• 14-19 yrs old
• both males and females
• Psychographic- based on how consumers spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live
• Athletic lifestyles

Targeting

• Differentiated Strategy- a firm targets several market segments with a different offering for each
• Urban communities
• Sports and fitness
• 14-40
• high quality
• affordable price
• Males/Females (Mostly males)
• Non-sport consumers
• 16-25
• fashion/distinct logos
• Males/Females
• Majority: 15-30
• Middle class/upper middle class
• luxury

Positioning

• Brands
• Old logo (Trefoil)
• New logo (3 Stripes)
• "Speed, cities, and open sources"
• "How we deliver"
• "Where we deliver"
• "How we create: collaborate and innovate"
• Creator Sports Brand
• "Calling all Creators"

Positioning

Product

• Product mix - complete set of all products
• Shoes
• Breadth - number of product lines
• Mens, Womens and Kids
• Depth - number of categories
• 12 for Women, 14 for Men and 4 for Kids
• Performance
• Essentials
• Originals
• Range of sports (running, basketball, tennis)

Price

• Price Elasticity - if a price is elastic, that means it is sensitive to changes
• Use competitive pricing keeping competitors in mind such as Nike and Puma
• Tends to keep a stable price on all of its products
• With the exception of sales and discounts
• Brand Loyalty - people will pay extra $$
• Offers high-end expensive shoes as well as basic semi-affordable shoes

Price

Promotion

• Good promotion can create a difference in customer base
• Promotion page on website
• Overview of sales and deals
• Sign up for their newsletter and get 15% off
• Students get 15% off and free shipping through Unidays
• Sponsor teams
• Collaborations with celebrities
• Kylie Jenner

Growth Strategy/Ad

Advertisement

• Pull strategy
• shows the consumer the environmentally friendly side
• Informative advertising
• Product-focused

Growth Strategy

• Diversification - introduces a new product or service to market segment that is currently not served
• Adidas introduced an environmentally friendly shoe
• Appeals to those making efforts towards better sustainability
• First kind of shoe like this
• Suggest that they keep moving forward with this