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Adidas Report

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40 views9 pages

Adidas Report

Uploaded by

Sujan Aryal
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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“Strategic Brilliance: Analyzing Adidas'

Marketing Success Through the 4Ps, Target


Customer Focus, and Digital Dominance”

Introduction
Adidas, a prominent multinational sportswear corporation, was established in Germany in 1949
by Adolf Dassler. The organization has gained significant recognition for its inventive designs,
cutting-edge technologies, and effective marketing initiatives that center on athletic apparel,
footwear, and accessories. Headquartered in Herzogenaurach, Germany, adidas has captured
strong market share across North America, Europe and Asia Pacific with 2021 revenues reaching
€21.2 billion. Prominent contenders within the sportswear sector include New Balance, Nike,
Puma, and Under Armour. Nevertheless, adidas has sustained its position as the second largest
global sports brand, trailing only Nike, by means of investments in sponsorship, product
innovation, and digital platforms. In addition to professional athletes, the company appeals to
fitness and casual fashion enthusiasts. The company sells a variety of items aimed to improve
performance and comfort in a variety of sectors, including outdoor, lifestyle, training, soccer, and
basketball. As the importance of sustainability grows, adidas' attempts to use sustainable
materials and manage its business in a more ecologically friendly manner have considerably
boosted the brand's reputation (Us, 2023).

Marketing Mix
Adidas uses the marketing mix, also known as the 4Ps (product, price, promotion, and place), as
a framework to promote its products and services more effectively. Adidas, a multinational
sportswear firm, must implement an efficient marketing mix to sustain competitiveness, meet
customer requests, and achieve organizational goals. (Sun, 2022)
Product
With a wide range of fashionable apparel, high-performance sports gear, and iconic vintage
labels, Adidas has created an excellent assortment of products. As an example, Boost running
shoes have state-of-the-art technology that enhances performance. Known for their trendy
clothing lines, Adidas seamlessly blends timeless styles with contemporary fabrication
techniques. Another great thing about historical lines is how they blend modern production
techniques with a hint of nostalgia. Fitness, running, basketball, and football are some of
Adidas's key target sports so the company can concentrate its product development efforts and
capture a significant portion of those niche markets. Supply chain innovations facilitate
production near to consumer demand. Because of this, Adidas is able to respond faster to
consumer demands and the products of competing brands by releasing new products to the
market (Singhvi & Srivastava, 2021). Offering personalized, high-quality items increases
customer loyalty and repeat business.

Price
To determine the optimal rates, Adidas employs value-based pricing, which entails researching
rival companies' prices and client sentiment towards them. Limited edition apparel and sports
gear often has premium pricing to capitalize on scarcity, establish an elite brand image, and
justify high production costs (Poerner et al., 2018). Conversely, due to its mass production, the
well-known Adidas Originals clothing line is more affordable for younger consumers. To account
for competition and average wages, prices are purposefully adjusted when entering new overseas
markets. Sales, coupons, seasonal discounts, and factory outlet outlets provide customers with
cheaper options at different times, helping to maintain brand values. Adidas maximizes profits
and global sales with the use of effective pricing tactics.

Promotion
Sponsorships of prominent athletes provide corporations with extensive exposure at major
sporting events attended by millions of people worldwide. Innovative billboard and television
advertisements help to distinguish the Adidas brand in people's perceptions. When brands own
social media sites, such as Adidas' YouTube account, they may entice followers with engaging
content. On sites like Instagram, creative hashtags and collaborations with influencers are
utilized to improve user-generated content (Li, 2023). Furthermore, personalized digital ads
deliver messages that are more relevant to consumers who visit websites or are currently
customers. While detailed, sophisticated advertising keeps consumers aware of the Adidas brand,
the corporation is continually expressing the brand's principles (Crasto et al., 2020).

Place
The easy availability of preferred Adidas products is ensured by the efficient management of
distribution and sales channels. Complete brand immersion is shown at flagship Adidas stores in
the world's most populous cities through clothing displays, unique merchandise, and even
running tracks that are right there in the stores (Kwon et al., 2023). By forming strategic
alliances with big shops such as Foot Locker, Dick's, and JD Sports, market penetration is
significantly expanded. Suite-wide initiatives have placed significant emphasis on e-commerce
channels in an effort to improve the user experience, capitalize on data, and increase sales
conversion rates. For added distribution flexibility, Adidas maintains direct-to-consumer
channels such as the Adidas mobile application. Adidas' ultimate objective is to provide a
cohesive brand experience, irrespective of the manner in which the customer interacts with the
brand and makes purchases. Significantly, omnichannel distribution aids this objective.

In essence, by strategic optimization of components of the marketing mix, Adidas is able to


generate client interest, establish a positive brand image, penetrate untapped markets, outperform
rivals, and attain robust financial results. Product, price, placement, and promotion mastery are
essential for sustained success.

Target Customer
Adidas must establish a distinct target market in order to allocate marketing resources effectively
and enhance the pertinence of communications. Adidas primarily targets two large demographic
groups: young adults with a keen interest in fashion and athletes ranging from amateur to
professional. By focusing its brand efforts and product development on meeting the needs of
these fundamental client segments, Adidas achieves increased customer lifetime value and
improved customer retention compared to a disorganized and diluted strategy that attempts to
appeal to everybody. Adidas employs a variety of brand techniques to serve its target athletes.
Endorsement by prominent sports leagues and high-performing athletes offers both visibility and
credibility. With the input of athletes, customized products are developed to optimize
performance. By developing innovative proprietary technologies such as Boost foam and
GEOFIT shape-memory fabrics, Adidas distinguishes its products from those of its competitors.
Adidas stores strategically placed in cities and near sports facilities improve the shopping
experience for consumers who dress for active lifestyles. Finally, athletes are drawn to the
Adidas brand because of the innovative new ideas that address their functional performance
requirements (Birch, 2019).

Furthermore, younger, fashion-conscious individuals account for a sizable portion of revenues.


By incorporating historical design aspects from well-known brands like as Stan Smith and
Superstar, you can connect with current trends. Strategic partnerships with influencers and
limited capsule collections generate buzz and scarcity. Using personalized hashtags in social
media ads allows the adverts to automatically reach more people. Classic styles are still useful,
even with new material alterations and seasonal color upgrades. Offering low entry-level costs is
an excellent approach to attract millennials and Generation Z. In immersive retail locations, it is
also feasible to capture and interact with brand immersion. In general, Adidas does an excellent
job of fusing historical features with new trends in order to cultivate a dedicated following of
young fashionistas. Adidas simply wins by not attempting to appeal to all customers with a
mediocre strategy. Using customer experiences, brand messaging, and product design
optimization to truly connect with your target athlete and fashion-forward audience results in
increased long-term revenue since those consumers are retained. Positioning successfully is
dependent on being able to identify and then achieve these primary objectives.
Digital Marketing Communications
By integrating earned reach, paid advertising, and owned channels, one can develop an efficient
communication mix that provides significant customer insights. The digital marketing efforts of
Adidas fortify the brand's standing and accelerate long-term sales expansion (Bingemer, 2015).
By maintaining its own social media platforms, a business may engage its audience through the
dissemination of diverse narratives. There is a great deal of video content on the Adidas YouTube
channel, including product launch teasers, innovation explainers that resemble films, and
motivational athlete narratives. In the millions, the videos are viewed. Active Instagram,
Facebook, and Twitter accounts disseminate concise, relatable material that captivates followers,
ensures they remain informed, entertained, and fully involved in the Adidas brand, even outside
of their buying activities. Engagement of followers is facilitated through the implementation of
hashtag campaigns, collaborations with influencers, and the integration of user-generated
content. Adidas.com and similar owned review sites facilitate community interaction and collect
valuable, firsthand input from customers regarding apparel (Kwon et al., 2023). Paid digital is an
important component of the marketing mix as well. This includes brand-relevant advertisements
on Amazon, Google, social media, and lifestyle websites. Adidas merchandise are connected to
the search inquiries that individuals are most intrigued by means of sponsored search
advertisements. Retargeting display adverts remind interested site visitors of abandoned
shopping carts in an effort to seal the deal. Dynamic video advertisements on YouTube and
Facebook are compatible with both brief content and product presentations. Influential affiliate
partners are compensated for generating sales, attracting targeted visitors, and increasing brand
exposure. You can examine specifics regarding the performance of sponsored digital campaigns
using data analytics, allowing you to make adjustments often in order to meet key performance
indicators (KPIs) such as return on ad spend. Paid digital marketing essentially fills the sales
funnel, maintains strong demand throughout the buying cycle, and accelerates return on
investment (ROI).

Earned positive mentions of a business on the Internet are also quite valuable because they
attract new customers and enhance the brand's credibility. The organic promotion of new
products and premium owned content via user-generated social content accelerates the rate at
which it is viewed by audiences. Platform partner sites that provide favorable customer reviews
instill confidence in individuals considering the purchase of Adidas apparel as opposed to
competing brands. When non-branded performance-related keywords, such as "running shoes,"
achieve a high ranking in search results, they organically supplant brand-unrelated demand
(Singhvi & Srivastava, 2021). By contacting both general news and industry magazines via
public relations, editors are more likely to notice significant company news. By monitoring
earned reach forms, Adidas may potentially thwart reputation concerns early on and concentrate
on what is successful. A combination of owned, paid, and earned digital channels are utilized by
Adidas to reach the appropriate individuals at each point of the customer experience. Multimedia
narratives captivate audiences, while consumer insights and data-driven campaign optimization
are the forces that propel expansion. The perpetual evolution of digital marketing platforms
ensures that heeding customer feedback and generating innovative solutions will continue to be
pivotal for sustaining long-term success. This report is really comprehensive, and it does an
excellent job of addressing the key issues specified in the project brief. The work demonstrates a
commendable comprehension of the objectives and prerequisites, since it is structured into four
distinct components. This paper's primary objective is to analyze adidas' marketing approach.
Additionally, a succinct yet impactful synopsis of the organization, its dominant status within the
sportswear sector, and its rivals is provided in the introduction. This effectively establishes the
context for the subsequent strategic analysis. The Marketing Mix segment effectively
deconstructs the 4Ps and illustrates how adidas achieves market success through the integration
of Product, Price, Place, and Promotion strategies—while simultaneously establishing the brand's
cultural and athletic relevance.

Conclusion
An excellent foundation in Adidas' modern marketing is demonstrated by the examples that are
now available. Equally commendable insight is supplied evaluating Adidas Target Customer
inclinations spanning performance-driven producers as well as progressive lifestyle segments
fuelling relevance with youth culture and casual customers (Li, 2023). A customer overview is
one of the needs for the assignment, and this precisely corresponds with those objectives.
Evaluating the most current digital campaign, "Here to Create," is once again effectively
supported by detailing the messaging, mediums that were deployed, and the impact that resulted
in boosting Adidas' appeal as a creativity booster. From the perspective of digital
communications, the directions laid out in this part are totally satisfied by the commentary on
supporting brand image aspirations. In addition to exhibiting intelligent marketing understanding
that goes beyond textbook definitions, the report fulfills all of the requirements that were
outlined in the brief. Throughout, the structure and writing are of a very high quality; they are
lucid, clear, and correctly referenced, and they are of a university level. Goals regarding the
number of words have also been accomplished effectively. In general, the work demonstrates that
the student has a solid understanding of Adidas marketing and a talent for doing strategic
analysis by making use of concepts and examples. It is quite evident that it is deserving of full
marks for both the contents and the quality.
References

Bingemer, M.C. (2015) ‘Experiência Mística: Identidade em debate - doi 10.5752/p.1983-


2478.2014V10N17P25’, INTERAÇÕES, 10(17), pp. 25–47. doi:10.5752/p.1983-
2478.2015v10n17p25.

Birch, R. (2019) Adidas: A strategic audit, DigitalCommons@University of Nebraska - Lincoln.


Available at: https://digitalcommons.unl.edu/honorstheses/166/ (Accessed: 16 January
2024).

Crasto, S.G. et al. (2020) ‘Product innovation by Adidas Group through Sustainability’, Journal
of The Community Development in Asia, 3(1), pp. 1–7. doi:10.32535/jcda.v3i1.702.

Kwon, E. (Penny), Choi, T.R. and Ma, L. (2023) ‘Me, like Chanel: Examining antecedents and
consequences of consumers’ luxury brand engagement on Instagram’, Journal of Current
Issues & Research in Advertising, pp. 1–21. doi:10.1080/10641734.2023.2236176.

Li, X. (2023) ‘Analysis of the marketing strategy of Adidas’, Advances in Economics,


Management and Political Sciences, 23(1), pp. 33–38. doi:10.54254/2754-
1169/23/20230346.

Poerner, M. et al. (2018) ‘Adidas Tape’, ACM SIGGRAPH 2018 Talks [Preprint].
doi:10.1145/3214745.3214761.

Singhvi, V. and Srivastava, P. (2021) ‘Evaluation of consumer reviews for Adidas Sports Brands
Using Data Mining Tools and Twitter apis’, International Journal of Service Science,
Management, Engineering, and Technology, 12(6), pp. 89–104.
doi:10.4018/ijssmet.2021110106.

Sun, Y. (2022) ‘Marketing strategy analysis and evaluation for the Adidas’, BCP Business
& Management, 35, pp. 317–322. doi:10.54691/bcpbm.v35i.3308.

Us, A. (2023) Adidas official website: Adidas Us, adidas United States. Available at:
https://www.adidas.com/us (Accessed: 16 January 2024).

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