Marketing Strategy – Adidas
The group has maintained a culture of providing high quality products aimed at providing the best value to the costumer. The products portfolio is continuously enhanced through creations and innovations throughout the companies various categories.
This is pursued in order to cater to the various needs and wants of consumers worldwide.
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Well-known brands for sports apparels, equipment and accessories, the Adidas group has a diverse brand portfolio consists of: Adidas: footwear, apparel and accessories; Reebok: footwear, apparel and accessories; TaylorMade Adidas Golf: Golf Equipment, footwear, apparel and accessories; Rockport: Dress, casual and outdoor footwear, apparel and accessories; CCMHockey: Hockey equipment and apparel.
Adidas had implement latest technologies in their products which able to enhance performances of players and they focus on sports such as football, tennis, basketball and even training shoes which are used by anyone with the ability to run. Their new technologies have lead to the production of Climacool, a shoe with a ventilation system and a shoe with an energy management system that guides and drives an athlete’s foot through each stride. Price
Adidas adapt a premium pricing strategy which it is a strategy where companies charge a premium price for their products. Adidas is trying to penetrating markets by using market skimming tactics – use premium strategy and offer high quality and customer satisfaction for high prices. This had clearly positions itself as a top-notch brand in the market.
The company has adopted an ambitious global plan to distribute its products to the consumer with a strong focus on controlled space, including: Own-retail business, e-commerce, Shop-in-Shop, Joint ventures with retail partners, mono-branded franchise stores, co-branded stores with sports organizations and other brands. Hence, a high level of brand control is provided. In addition, an “integrated distribution roadmap” has been set up to ensure further growth and to increase brand presence in under-penetrated, affluent cities, without cannibalizing their own brands and distribution mix.
The Adidas group sells products in virtually every country of the world. Thus, different promotional tools are used in order to reduce the number of lost customers and to increase sales. The group has set up an unparalleled portfolio of promotion partnerships with international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL). Henceforth, commercials, ads, apps for smart phones, product placement, sponsorships for athletes and sport events (e.g. Berlin Marathon 2011) are implemented. Adidas has provided the Official Match Ball containing Logo of the Adidas for FIFA World Cup 2010 (South Africa).
Adidas is tier one partner and sponsor for the coming London 2012 Olympics – one of the important Sporting Event of the World. The officials and staff of 2012 Olympics wearing Adidas Sportswear during Inaugural and Closing ceremonies will always leave Adidas in the brains of the Millions of the people watching these ceremonies. Adidas has hailed its biggest ever UK marketing campaign ‘Take the Stage’ for lifting sales of London 2012-related merchandise to around £100m.
Q2. Why Adidas Sponsor In London Olympics But Not New York Or Malaysia? A worldwide sporting event like The Olympics or world Cup provides a huge marketing opportunity for sports apparel companies, which have long enjoyed a spike in sales during such events. Historically, the Olympic Games have been an ideal forum for brands looking to strengthen their global presence. “Faster, Higher, Stronger”: it is the motto of the Olympic Games. But it is also a pretty good fit for the global market for athletic footwear, apparel and equipment.
Retail sales totaled an estimated USD 340 billion in 2011. That represented growth of 7%, well ahead of global GDP growth of 2.5%. Companies have paid hefty sums for the privilege of being associated with the Games, convinced that no other event in the world offers the unique combination of mass worldwide exposure and fostering of positive values. London Olympics will put sport into the living rooms of billions of consumers around the globe, which should help to keep revenues in the segment on an upward trajectory. London is a key focus for the sportswear market, for both performance sportswear and sports fashion.
This market sets more trends than anywhere else in the country. London 2012 gave Adidas a platform to target this audience but with a global reach. As a result of the marketing strategy in London 2012, Adidas said that the Olympics, alongside its sponsorship activity around the European Championships and the Champions League, helped push sales up 15 per cent to €3.5bn (£2.8bn) year-on-year in its second quarter. Net income jumped 18% to €165m (£129m). Other non Olympic host – such as Malaysia, did not gain sponsorship from Adidas although Malaysia had hosted some major sport events such as F1.
However, car racing is not there main product line of Adidas. Adidas main pipelines lies in running, training, football, basketball etc, which these sport is also a major attention worldwide. F1 for example, did not have vast amount of audience compare to football and basketball. Return of investment for sponsoring are not significant as market penetration is not huge as per Olympics.