Detailed Marketing Mix of Adidas with Complete Company Overview
By Aditya Shastri
Adidas uses “Impossible is Nothing” as its tagline and has even proved it for itself. A prominent sportswear manufacturing company today, it came into the headlines and became world-famous in 1954 after the great victory of the German team in the World Cup, the “miracle of Berlin”. Adidas was also listed in Forbes’s most valuable companies list in 2020.
In this blog, we will learn the marketing mix of Adidas incorporating its 7P’s
About Adidas
Adidas is a German Multinational corporation founded in 1959 by Adolf Dassler, headquartered in Herzogenaurach, Germany. It is one of the oldest footwear brands that is still considered a major style statement by youngsters worldwide. Even after facing intense competition from the traditionally competitive US sportswear market, Adidas through its creative and appealing marketing campaigns has managed to remain one of the leading brands in the world.
Having operations in over 100 different countries, Adidas is a large and multifaceted organization that employs 62000 people all over the world. Since its establishment, Adidas has opened its successful brand subsidiaries including Reebok, TaylorMade, and Runtastic.
Now that we have a brief about the company, let us dive straight into Adidas’ Marketing Mix
Marketing Mix of Adidas
Marketing Mix refers to the foundation model of any business which is centred around mainly the 7Ps which are product, price, promotion, place & distribution, people, process and physical evidence. Companies lay out strategies and marketing techniques around these to reach out to their target audience to achieve their marketing objectives.
Let us understand the following 7 Ps of Adidas-
1. Product Strategy of Adidas
Adidas deals in various product lines including footwear, apparel, accessories, football kit, golf equipment, etc. The range of Adidas products is also divided according to different sport games for which Adidas provides kits and equipment. Some of the sports games where the company majors in supplying the team kits globally are: Association football, Baseball, Basketball, Cricket, Gymnastics, Ice hockey, Lacrosse, Running, Skateboarding, Tennis, Kabaddi, and Golf.
Adidas has gained huge popularity by opening its subsidiaries including Reebok, Runtastic, TaylorMade, and Rockport. Though there are around 110 subsidiaries of Adidas Worldwide, the subsidiary that overtaken Adidas itself is Reebok footwear and apparel. Whereas Runtastic is a digital health and Fitness app, TaylorMade is centred on golfing clothes and Rockport offers outdoor footwear, apparel and accessories.
Though this company offers various products, its major product line is Footwear. Given that Adidas’ foundation was built on footwear itself, its footwear is still deemed the most robust and athletic in the market, followed by its apparel and accessories
2. Price strategy of Adidas
Adidas includes Skimming Pricing and Competitive pricing in its marketing mix. Competitive prices are used for its mill products to compete with brands like Nike and Puma and skimming prices are used for the newly introduced products in the market.
Under Skimming pricing, high prices are kept for newly launched products to maintain the exclusivity and gradually the prices are reduced with time until it reaches market average.
When it comes to Apparel, Adidas mostly uses a skimming price strategy because of its brand equity. Thus, the Target audience of Adidas includes the upper-middle class as well as high-end customers.
Matter of fact, the High-price strategy of Adidas makes it a luxury brand among people. Folks go for Adidas even when the prices are high because psychologically, they think that high prices mean high quality and confirmation of authenticity.
3. Place & Distribution Strategy of Adidas
.Adidas has its production houses in around 55 countries and has 800 factories pinned across different continents. The major source through which its products are sold is Retail Stores i.e., Adidas outlets. It has more than 2800 retail outlets globally.
The second major way of distributing Adidas products is through multi-brand showrooms. The showrooms get the products from the distributor. These showrooms put on display the brands’ products.
In today’s world, no major brand is complete without an Online Store . Thus, Adidas has an online website too and some of the products like apparel are sold through various famous fashion stores like Myntra and Amazon too.
4. Promotion Strategy of Adidas
It is a well-known fact that the TV ads of Adidas are Adrenaline pumping. Knowing that Adidas’ strength is derived from sports, their ads are robust and passionate. The major source of promotion for Adidas is marketing through television.
Another major promotion method of Adidas is product placement. Product placement means where references to brands are made by featuring them in other work like movies and television programs. The popularity of Adidas is also because of all its tie-ups with sports icons such as Lionel Messi and Ronaldinho.
Along with tying up with major sports celebrities, Adidas also sponsors some popular sports teams such as Real Madrid and in football, Great Britain which helps the company in building its brand image.
Apart from this, Adidas has been known for its creative marketing campaign and event marketing. Social Media is another way through which this company keeps up with the folks across the world. There are millions of followers of Adidas on both Facebook and Instagram. The sports angle in their social media handle makes it more magnetic and appealing.
The most recent campaign by Adidas “Own the Game” was introduced in virtual investor and media day. The campaign is to strengthen and uplift the authenticity of the brand and proliferate the company’s activity in sustainability. This campaign has been created with the expectations of sales and profitability until 2025.
5. People Strategy of Adidas
There are 4 main departments under Adidas which are contributing to its smooth and systematic working-
- The first one is Mediator , These people work with the suppliers to obtain the raw materials and have a significant role in improving the quality of the final product.
- The Sales Team is the key element for the sales and marketing of the company. They are trained with convincing and marketing techniques to help customers find their relevant choice.
- People working at retail stores , these people directly help the customers on-site by answering their questions and giving them a good experience at the store.
- The customer support department helps customers when there is an issue with the product and communicate with the consumer to resolve the problem.
6. Process Strategy of Adidas
Adidas has an intensive process from ordering a product to delivering it. They have a system installed in retail stores wherein retailers can inform whenever the inventory is low, they do this to keep the stores full and products available. For the website, they have a computer-based system where the order is received and the relevant product is shipped to the delivery chain.
The company is also extensively involved in market research and customer feedback to understand consumer choices and problems, to bring changes accordingly.
7. Physical Evidence Strategy of Adidas
Adidas has a website that is user-friendly and helps customers view their products in high-quality images. They also have a customer service department that helps consumers with all their issues.
For their retail stores, the company has separate specially designed shelves to make it easier to locate products. The products are also packed in different colourful packaging, again to make them unique and easily identifiable.
So, these were the 7P’s of Adidas, we can see how the company has used everything perfectly in their favour which has led to its strong brand identity. Let’s sum up the above marketing strategy of Adidas.
With the above-mentioned 7Ps, it can be concluded that the 71-year-old Adidas is still a robust and successful company out there. It has come up with some of the most creative campaigns and its creative team has never failed to boost the confidence of sports lovers and youngsters in the company worldwide. Adidas has maintained its authenticity and credibility by always catering to its target market by providing quality products. Their thousands of outlets all over the world have made the brand easily accessible. With their signature branding, Adidas has created for itself a distinguished position in the market.
Found the blog interesting? If you want to learn further about Digital Marketing, do check out our 45 minutes Free Digital Marketing Masterclass by Karan Shah, the founder and the CEO of IIDE.
Thank you for reading this case study.
Aditya Shastri
Lead Trainer & Head of Learning & Development at IIDE
Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]
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Adidas Case Study And SWOT Analysis
Adidas was founded by Adolf Dassler and his elder brother Rudolf Dassler in the early 1920s and is now recognized as one of the most famous global manufacturers of sports products. Adidas is developing its products to serve customers’ needs at best possible level. Adidas works on its products by incorporating new fashion trends and technology and making them more sport-specific. Today, we will discuss the Adidas marketing strategy, marketing mix, and market analysis through SWOT analysis in this case study.
There are three main areas of marketing where Adidas sees an increase in its mix of sales and investment.
- First, the company is expanding into new places, such as developing new products and services, enterprising in new fields, and moving from production to development for upkeeping.
- Second, Adidas’s presence on social media platforms is increasing as people seek out its products for fresh flavors and ingredients.
- And third, Olympics-related advertising will continue to be a major part of Adidas’s marketing strategy.
Marketing Mix of Adidas
Here is Adida’s marketing mix comprised of the 4Ps of marketing: Product, Place, Price, and Promotion.
Product: This product that Adidas markets under its various labels, such as energy boost, running, football training, tropical heat wear, etc.
Place: This is a place where these products primarily sell out depending upon the developed region.
Price: Adidas is aggressive in promoting prices to enjoy a competitive position. In this area, Adidas believes the price will be dictated by the market’s demand, not its shortages or excesses. In 1964 when Adidas began pricing shoes at $12 vs. Nike at $15, Shoe sales went down, but once set price, they stayed the same, becoming more attractive to prospective buyers versus new entrants with their much lower prices.
Promotion: This refers to the strategies of Adidas for attracting consumers to purchase its products, whether it is competition, direct marketing campaigns, or social media messaging and advertising.
Adidas differentiation strategy
Adidas focuses more on the broad differentiation strategy. The corporate level strategy of Adidas focuses on innovation, trying to produce new products, services, and processes to cope with the competition. The group’s multi-brand portfolio gives them an important competitive advantage. That created a global sales function responsible for commercial activities, and international brands serve accountable for the marketing of both brands.
The global sales function was split into two departments, wholesale and retail. That catered to the various needs of both these business models. It has been done to sustain their corporate-level strategy for the long run so that these divisions could emphasize and work hard in their respective departments to make the most of their efforts.
They implemented a multi-brand strategy by having a diverse brand portfolio, allowing them to cater to all market segments, from players to almost everyone. It helped them to keep a unique identity and concentrate on their core competencies.
Adidas’ digital marketing strategy
Adidas uses a straightforward digital marketing strategy to communicate with its current and potential customers. By implementing this strategy, they have been able to take competitive advantage with their top competitor, Nike. By changing the behaviors of consumers with this digital transformation, Adidas has to change how they work. The use of technology has helped Adidas connect with more consumers and build stronger relationships with customers.
Six components aid Adida’s digital marketing strategy, including:
- Digital and technology
- High-speed manufacturing
- Personalized experience to create strong relationships with customers
- Open-source innovations and collaborations
- Strategic cities include London, LA, New York, Paris, Tokyo, and Shangai.
- Improve portfolio of both brands, i.e., Adidas and Reebok.
Creative Idea
Creative Insight:
The past year has witnessed the growing popularity of Instagram Reels with millennials and Gen-Z audiences. Thus, harnessing the popularity & impact of Instagram Reels was the approach to creating visually appealing and stirring content that drove product heat and led the campaign story #OpenForum
Visual Storytelling & Content Output :
Social media has played an important role in bridging information gaps. In contrast, brands have ensured that Indian consumers access the best global launches on the same day as consumers in other parts of the world.
An Instagram campaign was undertaken that engaged 50+ creators from various fields to bring the campaign message to life and drive appeal for the launch of the new Adidas sneakers through relevant storytelling.
View this post on Instagram A post shared by I S H A B H A N S A L I (@ishabhansali)
SWOT Analysis of Adidas
SWOT analysis is the method of measuring the organization and its environment, whether internal or external. It is the first stage of planning, which helps marketers focus on the key issues an organization can face.
SWOT stands for Strengths, Weaknesses, Opportunities, and threats. Adidas’ strategy analysis focuses on Strengths and Weaknesses, which represent the company’s internal environment. In contrast, the other two represent the external environment with direct and indirect impacts on the business.
- The brand recognition of the product it’s well-reputed.
- High-quality products.
- Provides a diverse range of products (shoes, bags, shirts, perfumes, toiletries, etc.)
- Obeys environmental laws (Adidas has never been accused of pollution)
- Adidas’ policies and management safeguard employees’ rights.
Weaknesses
- Online stores are offered only to the USA or some locations in Europe.
- Customer services are not functional, which creates problems, especially in the case of e-marketing
- Price is interwoven to high quality.
Opportunities
- Outsourcing web development and e-commerce/marketing to a third party is possible.
- The growing market for sports apparel
- Joint Venture with partners around the world to increase participation in athletics.
- Unstable economic environment
- Competition at the supply chain management level
- Nike’s strong reputation in the sports industry
Related: Amazon Case Study: Marketing and Advertising Campaigns
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Fundamental Financial Analysis: A Case of Adidas
Adidas is a multinational corporation operating in the Global Sportswear Industry. The company has recorded remarkable success in the sportswear and sporting apparel business. It is driven by the mission of being the leader in manufacturing and marketing sports shoes, accessories, and equipment. In 2015, Adidas developed an initiative called “Creating the New” to expand its market size and increase revenue returns. The significant activities promoting Adidas operation are fitness exercises for good health, soccer games, and Olympic sports all over the world. The global economy influences retailing activities following the fluctuations realized in the micro-and macroeconomic environments. Thus, it is appropriate for Adidas to establish strong financial strategies for overcoming the shifts of commercial activities experienced in the competitive economic world. The fundamental financial analysis of Adida’s status as per the year 2019 focuses on short-term liquidity, operational efficiency, capital structure, and profitability in the global market. The ratios unveil that Adidas is not risking to incur losses but faces liquidity problems when obligations are met by using the quick assets only. The operation efficiency of the Corporation is relatively high since credit sales management functions on time. The capital structure analysis shows that Adidas has more assets than debts; however, the elevated credit ratio puts the company in a risky state that only relies on liabilities for capital. Generally, the profitability of the company in the global market is relatively low. The implication is that Adidas Corporation should focus on mitigating the weak points in its financial plan to gain higher revenue returns and market expansion.
Introduction
Adidas is a multinational company operating in the Sportswear Industry, having major brands of Adidas, Taylor Made, and Reebok. The corporation has its headquarters in Herzogenaurach city in Germany. Adidas was created by the Dassler brothers, Adi and Rudolf, but developed by Adi after a conflict. Rudolf Dassler came up with Puma after that. The company grew to the extent of holding a share in the DAX30 stock exchange in which highly mentioned 30 companies are recorded (Ind, 2015). Currently, Adidas Corporation is quoted more than 12 stock indices, and over 60,000 personnel are working for the company in 160 countries all over the world. The mission of Adidas is to “strive to be the global leader in the sporting goods industry with brands built upon a passion for sports and a sporting lifestyle.” Thus, by 2015, the “Creating the New” initiative was implemented to escalate growth in production and marketing. The products generating revenue for the corporation are classified as footwear, apparel, and hardware (Laluyan et al., 2017). This paper discusses the economy of Adidas Corporation and analyzes the financial flow of the company. The objective is to carry out a fundamental financial analysis and relate it with the development strategies and opportunities of Adidas.
The Industry
The Global Sportswear Industry deals with goods utilized for sporting activities. Adidas Corporation holds the second position among the most significant contributors to the Global Sporting Goods Industry (previously identified as the Global Sportswear Industry). The industry comprises manufacturing and retailing companies that trade equipment for fitness exercises, uniforms for athletic activities, soccer boots, Olympic shoes, and different accessories (Santos, 2017). The estimation in 2018 predicted a CGAR of 10.4 percent between 2019 and 2025, and at that time, the Global Sportswear Industry market size was USD 239.78 billion. The basis of forecasted growth in marking sporting costumes and apparel was the popularization of health benefits and a good lifestyle obtained from fitness activities (Santos, 2017). Thus, progression in the growth of the Global Sportswear Industry relies not only on athletics but aerobics; swimming and yoga also contribute to an increase in production and marketing in the industry.
The Global Sportswear Industry has obtained strong support from athleisure and increased participation in international sports. In 2016, the Deutsche Bank unveiled from different research that global health awareness pointing to physical exercise raised the revenue returns from retailing sporting apparel and costumes (Laluyan et al., 2017). Moreover, the industry profited from Brazil’s 2016 Olympic sports and the European Union soccer games hosted in France in the same year. The time range from 2015-202 was also indicated to be a period marked by growth in the Global Sporting Goods Industry with a CAGR of 3.4 percent. Apart from health awareness and sporting activities, the standards of living and consumer attraction to Adidas products comprised the drivers of industrial development (Santos, 2017). In addition, the online marketing platforms propagated Global Sporting Goods Industry growth since retailers would reach customers efficiently all over the world.
Global Economy Outlook
The third quarter of 2019 was marked by elevated equity returns. Irrespective of the low output of 2018 returns to the global economy, increasing product value to enhance marketing returns instead of wage-earning boosted the revenues. Generally, when there are favorable monetary conditions, equity prices increase, and economic growth is realized. However, in 2019, a case occurred in the United States, where the interest rates were cut three times, and lowered by 0.25 in October. In developed nations like the United States, the United Kingdom, and Japan, monetary easing would flatten the economy (Salvatore, 2020). Conversely, attaining the expected revenue returns from investments to meet the saving demands became hectic. Thus, economic growth relies on the high value of products to enhance the marketing of manufactured goods (Santos, 2017). It implies that the growth of Adidas Corporation has to follow a strong financial background and understanding of diversities in the market to overcome the competition challenge.
Future Prospects
The clarity of methods applicable to Equity valuations remains unsettled in the world of economics and business growth. Specifically, companies and marketing organizations hold a critical aspect of growth in a diverse and economically competitive world. Multiple valuations is a strategy employed by investment and financial institutions that follows the simplicity of its structure and dividends obtained in return. However, for a company to succeed, the approach as applied in banking institutions will be questionable on eligibility for the targeted customers (Santos, 2017). Well-defined strategies should be utilized in the fine-tuning equity valuation of Adidas Corporation. It is based on the fact that each model and method of assessment depends on openly available information about the targeted market and production in the company. Different factors affect the equity valuation in a company, such as a history and short-term changes in the micro-and macroeconomic environment (Santos, 2017). Thus, Adidas should consider looking into improving its economic output through a well-designed approach in equity valuation.
Short-Term Liquidity Analysis
The liquidity ratio shows the ability of the firm to meet its short-term liabilities.
- Current Ratio = Current asset/ Current Liability
10.64 Billion/ 8.75 Billion = 1.22
Since the current ratio of Adidas Company is greater than one, it implies that the company’s current asset is greater than the current liability. The organization will be in a position to meet its short-term obligation using the excess current asset (Yan & Zheng, 2017). Hence, the Adidas firm is not in a risky state or a financial crisis since its current ratio is more than one.
- Quick/ Acid Ratio = (Current Asset – Closing Stock)/ Current Liability
(10.64 Billion – 4.09 Billion)/8.75 Billion
6.55 Billion/ 8.75 Billion = 0.75
The quick ratio shows the firm’s ability to meet its short-term obligation using the total current asset without the inventory. The firm’s quick ratio is 0.75, which is less than one, indicating that the firm faces challenges in meeting its short-term liability without using its inventory (Yan & Zheng, 2017). The Adidas firm faces a liquidity problem when it uses its quick asset only to meet its obligation.
Analysis of the Operating Efficiency
The ratio shows the efficiency of the firm in using its assets to generate sales.
- Total Asset turnover = Sales/Total asset
23.6 Billion/ 20.68 Billion = 1.14
Total asset turnover shows the efficiency of the firm in using the assets to generate sales. A higher ratio implies that the firm is efficient in using its assets to generate sales resulting in a good performance (Yan & Zheng, 2017). The Adidas firm generates 1.14 sales from every dollar of its total assets.
- Inventory turnover = Cost of goods sold/ Inventory
11.32 Billion/4.09 Billion = 2.77
Inventory turnover shows the efficiency of the firm in using its inventory to generate sales. It demonstrates the number of times a firm sells its stock in a year, which is 2.77 times in a year (Yan & Zheng, 2017). A higher inventory turnover of the Adidas Company shows its good performance in terms of using its inventory to generate sales.
- Day sales inventory = 365/Inventory turnover
365/2.77 = 132 days
Day’s inventory turnover shows the number of days that a firm takes to convert its inventory to sales. The lesser days are taken to sell the inventory, the more efficient is the firm. Adidas firm takes 131 days, which translates to four months before selling its inventory.
- Account receivable turnover = Sales/ Account receivable
23.64 Billion/3.24 Billion
Account receivable turnover shows the proportion of sales generated from the account receivable. Adidas generates 7.3 times sales from its account receivable during the year (Yan & Zheng, 2017). The implication is that Adidas Company receives payment from debtors 7.3 times in a year.
- Debtor days ratio = 365/Account receivable turnover
365/7.3 = 50 Days
Debtor day’s ratio shows the time taken by the debtors before paying the credit sales. It indicates the efficiency of the firm in administering its credit sales. The debtors of Adidas take 50 days before paying their debt to the firm (Yan & Zheng, 2017). Since the days are less, the company is efficient in its sales credit administration.
- Account payable turnover = Credit purchases/Account Payable
Credit purchases = Cost of goods sold (COGS) – Opening inventory + Closing inventory
11.32 Billion – 3.45 Billion + 4.09 Billion
= 11.96 Billion
- Account Payable turnover = 11.96 Billion/2.7 Billion
= 4.43 times.
Account payable turnover shows the number of times credit purchases (creditors) are paid during the year (Yan & Zheng, 2017). Adidas Company pays its creditors 4.43 times in a year, making it a good firm in management of its credit purchases payment.
- Creditor’s Conversion period = 365/Account payable turnover
The creditor’s conversion period shows the time that the firm takes before paying its creditors. The Adidas Company takes 82 days before paying its creditors (Yan & Zheng, 2017). The organization receives payment from its debtors after a short period (50 days) and pays its creditors after a long period (82 days). Thus, Adidas Corporation has good management for its credit sales and purchases.
Capital Structure of Adidas
The capital structure shows the extent to which the firm depends on the non-owner’s funds to operate the firm.
- Total Debt Ratio = Total debt/ Total asset
(0.043 Billion + 3.99 Billion)/20.68 Billion = 0.2 OR 20%
The total debt ratio demonstrates the extent to which the company uses debt to finance its asset. A higher value of debt ratio that is greater than one shows that the organization highly depends on debt, making it riskier (Syifaudin et al., 2020). Since Adidas’ total debt ratio is less than one, it indicates that it has more assets than debt, making it less risky.
- Debt equity ratio = Total debt/total equity
(0.043 Billion + 3.99 billion)/7.06 = 0.57 OR 57%
The debt-equity ratio indicates the proportion of funds contributed by the non-owners of the firm to that of the owners. It evaluates the leverage of the firm. A company with a debt-equity ratio greater than 100 percent shows that it is highly geared, making it riskier (Syifaudin et al., 2020). Since the debt-equity ratio of Adidas is 57 percent, which is less than 100%, it is not risky.
- Times Interest earned = Earnings before interest Tax (EBIT)/ interest expense
3.75 Billion/0.161Billion = 23.29
Times interest earned indicates the number of times a firm can cover its current payment (interest expense). A higher ratio indicates a low gearing position of the firm, making it have a low financial risk (Syifaudin et al., 2020). Since the time’s interest earned for Adidas is higher (23.29), it has a low financial risk.
Analysis of Adidas Corporation Profitability
Profitability ratios show the success of management in generating profits from a firm’s product sales.
- Gross profit margin = gross profit/ Sales
11.16 Billion/ 23.64 Billion = 0.47 OR 47%
The gross profit margin indicates the gross income that a firm obtains from its revenue. The lower the gross income, the lower the firm’s efficiency in generating profit from its sale (Syifaudin et al., 2020). Adidas generates 47 percent gross profit from its sales, which is roughly a high value.
- Net profit margin = Net profit/Sales
1.92 Billion/23.64 Billion = 0.08 OR 8%
Net profit margin refers to the percentage of the net profit that a firm generates from its sale. A higher net profit margin implies a good efficiency of the firms operating (Syifaudin et al., 2020). Adidas has a net profit margin of 8 percent, which is a lower value indicating its low performance in generating net profit from its sales.
- Return on asset = Net income/Total Asset
1.92 Billion/20.68 Billion = 0.09 OR 9%
Return on asset (ROA) indicates how efficient a company is in generating its net income. A higher return on assets indicates the firm’s efficiency in generating a net income from its asset. The Adidas Company has a 9 percent return on assets, indicating that the net income realized from the total asset is 9 percent (Syifaudin et al., 2020). The percentage is quite small, making it low in performance on generating income from the total asset.
- Return on equity = Net income/ Total equity
1.92 Billion/ 7.06 Billion = 0.27 OR 27%
Return on equity shows the amount of net income the firm generates from its shareholders. The lower the return on equity, the lower the performance of the firm. The Adidas Company generates 27 percent net income from its equity, indicating a low performance (Syifaudin et al., 2020). The reason is that the company can only generate 27 percent net income from its shareholders, which represents a lesser value.
Conclusion and Recommendations
The fundamental financial analysis of Adidas Corporation indicates that the company is stable and operates with limited liabilities to generate income. However, it is appropriate for it to make inputs towards gaining economic stability even when running on quick assets only. The liquidity problem may cease. Generally, the company is efficient in making credit sales. However, the payment of debts three times a year is likely to drag the business into a competitive global sportswear market. Thus, strategies should focus on how to transform credits sales efficiency to a rapid revenue return system. The capital structure of Adidas is well established. Efforts should focus on how to rely on the total assets for maximum income generation. Briefly, the value of Adidas Corporation is high, and mitigating identified points of weakness in its financial plan would yield maximum economic output in the global market.
Ind, N. (2015). Adidas: Rediscovering the source of its success. Web.
Laluyan, W. N., Pangemanan, S. S., & Worang, F. G. (2017). The effect of advertising, perceived quality and brand awareness on consumer purchase intention (Case study: Adidas sport shoes). Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 5 (2), 267-278.
Salvatore, D. (2020). Growth and trade in the United States and the world economy: Overview. Journal of Policy Modeling, 3 (1), 1-10.
Santos, D. F. (2017). Adidas group: Equity valuation thesis [Unpublished Master’s thesis]. Universidade Católica Portuguesa.
Syifaudin, A., Yusuf, Y., Mulyatno, R., & Dhevyanto, B. (2020). Fundamental financial information as a signal of company value . 1 st International Conference on Accounting, Management and Entrepreneurship (ICAMER 2019). 123, pp. 22-24. Atlantis Press.
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Appendix I: Adidas Income Statement for 2015-2019 Period
Appendix ii: adidas balance sheet for 2015-2019 period, cite this paper.
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Adidas Case Analysis
Adidas AG is a multinational corporation, founded and headquartered in Herzogenaurach, Germany, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike. It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, TaylorMade golf company (including Ashworth), Runtastic, an Austrian fitness technology company and 8.33% of German football club Bayern Munich. Adidas’ revenue for 2016 was listed at €19.29 billion.
The company was started by Adolf Dassler in his mother’s house; he was joined by his elder brother Rudolf in 1924 under the name Dassler Brothers Shoe Factory. Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic events. To enhance the quality of spiked athletic footwear, he transitioned from a previous model of heavy metal spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to use his handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in the relationship between the brothers, Adolf created Adidas, and Rudolf established Puma, which became Adidas’ business rival.
Adidas’ logo is three stripes, which is used on the company’s clothing and shoe designs as a marketing aid. The branding, which Adidas bought in 1952 from Finnish sports company Karhu Sports, became so successful that Dassler described Adidas as “The three stripes company”. The brand name is uncapitalized and is stylized with a lower case “a”.
Adidas Case Study Examples
Case study on adidas.
Adidas Case Study: Adidas is the great German international corporation which produces sportswear, sports equipment, shoes and bags. Today Adidas consists of a range of branches: Reebok, Y-3, Taylor-Made Golf, etc. The existence of the company began in the 1920 when the Dassler family decided to start producing shoes, generally sports shoes for sportsmen. Very […]
Case Study on Adidas and Reebok Merger
Adidas and Reebok Merger Case Study: Adidas and Reebok are the world leading multinational companies producing sportswear and sports equipment. Reebok is considered to be the oldest company of this type, because it produces sportswear since the end of the 19th century. Adidas on its turn is a quite younger company and it appeared in […]
Adidas – Case Study 2
1. What is Adidas‘ corporate strategy? Has the corporate strategy changed with restructuring? – Lead the sporting goods industry. – Provide athletes with the best possible equipment to optimize their performance. – Market penetration, gain access to all markets in which they can compete. – Develop and expand into new markets and express interest in […]
Adidas Swot and Pestel Analysis
This report is representing and discussing the SWOT and PESTEL analysis of Adidas sports’ wear company. Adidas, a German company with roots in Herzogenaurach near Nuremberg, tells a quintessential success story. The work of brothers Adi and Rudi Dassler, Dassler Brothers Shoe Factory focused on creating the best shoe for each sport and was one […]
Adidas Future Plan
Group is the world’s second-largest sporting goods company and had net sales of IJS$ 7. 74 billion in 2004. Adidas‘ product range includes shoes, apparel and accessories for basketball, golf, soccer, fitness and training. The company has over 14,000 employees, 110 subsidiaries and sources from 840 factories across the world. 0 per cent of the […]
Adidas: SWOT analysis and Michael Porter’s Five
These sports have been replaced in market share by sports such s baseball, basketball, football, and fitness activities like aerobics. Ideas has not developed the marketing mix to compete in these sports and fitness activities. The participation by women in these sports is growing, yet Ideas has neglected this market by remaining a preferred supplier […]
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An in-depth comparison between the two sneaker giants: adidas and nike on performance, popularity, and athletic ability., introduction .
There’s been a long debate about which is better, Nike or Adidas when it comes to sneakers. If you like to travel, then the importance of footwear is not lost on you. Two brands come to mind when you think of sneakers. There has been a long history between these two businesses, and everyone is curious to know who is better in terms of performance and revenues. Both brands have earned a reputation for excellence in their respective fields. Discover who is the king of the Nike vs Adidas battle by diving into the world of sneakers.
Adidas vs Nike: A Trip Down Memory Lane
After the brothers separated in 1949, Rudolph founded PUMA, while Adidas founded Adidas. At the time, PUMA was Adidas’ greatest competitor. Adidas was named after the first two letters of Adolf’s name and the last three letters of his second name. Choosing the logo was based on the unique features of Adidas’ shoes, and the three stripes symbolized comfort as well as a shoe design.
Adidas vs Nike: Performance and Revenues
This shoe company employed over 61 thousand people worldwide in 2021 , and generated revenue of 21 billion US dollars in the same year . After realizing that North America accounted for 40% of the global sports market in 2017 , the brand made it a point to dominate this market. Because of this, Adidas has always focused on this market. Despite Adidas’ smaller size when compared to Nike, this shoe brand stands out because it understands what consumers are looking for and focuses its efforts accordingly.
This shoe company employed over 73 billion people worldwide in 2021 , and generated revenue of 21 billion US dollars in the same year . Since Nike’s global revenue in 2017 was the biggest in the world, it chose North America as its target market. Nike has a strong marketing and sponsorship agreement to back up its actions. The vast revenue Nike generated in 2017 has partly been attributed to a contract signed in 2015. Adidas and Nike competed to provide the NBA with uniforms, and Nike won the bid.
Nike vs. Adidas: Production and Suppliers
Nike vs. adidas: perception.
Adidas appears to be winning the Nike vs Adidas argument in this category due to its collaboration with influencers, celebrities, and musicians. Adidas adopted an approach that focuses on streetwear sneakers. It collaborates with top celebrities, including Kanye West and Beyonce. Nike, on the other hand, emphasizes sports rather than celebrity collaborations. With the present athleisure trend moving sportswear to the office, Adidas stands a better chance in the market with this approach.
In contrast, Nike collaborates with celebrities of a different type. The Air Jordan trainer is regarded as one of the most popular celebrity sneaker brands due to its collaboration with Michael Jordan. These sneakers were introduced in 1985 and remain popular today. However, some individuals claim that they no longer have a cool factor to them. It is also worth noting that Nike partnered with Paris Saint Germain Football Club in 2018 and the team became the first to wear Jordan merchandise. The advertisements were centered around top footballers, Neyman and Mbappe. In a way, it is the foundation of both companies’ success as it forces them to grow their direct-to-customer relationships. Although Nike holds the majority of the market share, Adidas is rapidly closing the gap with its cool factor. Nike is the owner of the most prominent company, but Adidas is quickly closing the gap.
Nike vs. Adidas: Construction
The most important thing when choosing running shoes is to ensure that they fit comfortably. While there are occasions when you need narrow shoes, you may also prefer wider ones because of their comfort. When comparing Nike and Adidas, it is imperative to understand how both brands fit. Despite the fact that both brands offer a variety of features in their running shoes, there are certain distinctions to be made.
Uppers refer to the entire part of a shoe that covers the foot. Uppers are created by stitching or molding all parts of the shoe above the soles to form a single unit to attach the insole and outsole.
Those searching for comfortable, lightweight, and breathable uppers will be pleased to note that Nike provides precisely those qualities. The Nike Flyknit offers high-strength fibers without adding heavy weight. The fibers are woven into the upper so that it fits like a sock. Nike’s knit pattern varies slightly with each sneaker. Some of these shoes have tighter weaves to provide greater support, while others have loose weaves to provide greater flexibility.
In spite of the fact that Nike offers a variety of midsoles including carbon plates, carbon plates are not a regular part of its footwear. Nike’s top midsole technology is Nike React. Essentially, this technology utilizes a midsole that offers plenty of cushioning without sacrificing energy return. Additionally, it does not add a significant amount of weight to the shoe. You will feel nice and pillowy when you squeeze a Nike React shoe before it returns to its original form. As a result, the midsole of the Nike shoe provides a high level of cushioning and energy return.
Alternatively, Adidas is best known for its Boost technology, which was introduced in 2013. It is a groundbreaking cushioning technique that combines Thermoplastic Polyurethane with pressure-responsive properties. As a result of the compression feature, shock absorption is greatly enhanced and the show bounces back to its original state. This technology contributes to consistent performance because it provides excellent energy returns. As well as delivering outstanding energy returns, the Boost technology offers durability, temperature regulation, comfort, and flexibility, regardless of the weather conditions.
It is also important to consider the outsole in the Nike vs Adidas brand battle. Nike sneakers are guaranteed durability regardless of where they are purchased. The rubber outsoles of the shoes are thick and have deep grooves that channel water efficiently. Adidas, on the other hand, utilizes Continental Rubber outsoles that provide excellent traction. Thus, the sneakers are safe and easy to use when wet. A famous description of this rubber outsole is that it is durable and grippy, which makes it an excellent choice for running in inclement weather.
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Nike vs. Adidas: The Future
With a whopping worth of $85.54 billion US dollars in 2022, the sneaker industry continues to grow every day , and investing in marketing is crucial to a brand’s success. With such a lucrative size, it’s no wonder top sports brands compete for market share. It is evident that Nike and Adidas are doing exceptionally well and setting new financial records in the Nike vs Adidas argument. Nike has focused on expanding into China, while Adidas is looking to grow in North America. While Nike seeks new materials, Adidas focuses on design. Although Nike is the most popular of the Nike vs Adidas brands, Adidas is the winner regarding the cool factor. At the end of the day, it all depends on the individual’s preference as both brands have great features.
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Adidas Case Study
With the creation of Adidas by two German brothers in 1920, it was the innovator in the sports equipment industry for marketing strategies and the creation of new cleats for the superior athlete. For over 40 years, it was the most popular athletic shoe among Olympic athletes but with the combination of the market entry of competitor Nike, the death of the Dassler father and son leaving the company astray, and a myriad of other factors, caused Adidas to fall from its industry leading position to the bottom. Through a merger and an acquisition with some corporate restructuring, Adidas has come back to be second in the sports equipment industry.
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theido mokhara
Madeeha Kanwal
Strategy is about the most crucial and key issues for the future of organizations. Strategy is also important to explore several strategic options, investigating each one carefully before making strategic choices. The study incorporates a rigorous and systematic effort to uncover the strategies and its impact on the company's performance by analysing case studies, articles and the annual report of Nike Inc. and Adidas Inc. The study attempts to find out the relevance of the strategies adopted by these companies, which are globally successful athletic apparel companies in the context of Bahrain. The findings of the study highlight Nike's strategies which focus on innovation and emphasis on its research and development department, provision of premium pricing for its customers, broad differentiation strategy, market Segmentation Strategy and Closed-Loop strategy. The Adidas strategies focus on the broad differentiation, innovation, trying to produce new products, services and processes in order to cope up with the competition. It embraces a multi-brand strategy, emphasis on expanding activities in the emerging markets, continuously improving infrastructure, processes and systems, foster a culture of challenging convention and embracing change, foster a corporate culture of performance, passion, integrity and diversity. These strategies coupled with its resources and unique capabilities form the basis of sustainable competitive advantage for both the companies. INTRODUCTION: The strategy is a path towards achieving the optimum goals of individuals, groups and organizations. In addition, it leads to a best use of companies' available resources and it also guides the company to stay in a business successfully and continuous improvements for its processes. The definition of strategy could be differ from one author to another, but the most common definition is that the strategy is long term plans and approaches towards the intended visions and objectives. It is a general framework that specified the organizations' plans, policies and approaches to meets its objectives, goals and end results. The way an organization used to shape its strategies could be differentiate from other organizations in order to make its products unique and remarkable. Globally, companies formulate their strategies based on their visions and reaching the satisfaction of customer's needs, requirements and expectations. Subsequently, they use those strategies as a baseline to compare their actual performance with planned ones, to evaluate the end results and ensuring the continuing organizational excellence. There are many kinds of strategies that are pursued by the companies; Such as cost leadership, differentiation and the focus strategies (Porter, 1985), services strategies, growth strategies. Based on the goals, the companies form those strategies and they rank them upon the priorities. It is more than important for any organization to put strategies and not any strategies; the correct strategies which are formulated after a long time of studying and after numerous number of brainstorming among the top management members. Therefore, those strategies then to be implemented by converting the organization's plans and policies into real actions through the best use of available resources such as: human resources, budgets and technological advance; in order to enhance the organization's performance, productivity and sustainability.
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Adidas Case Studies Samples For Students
11 samples of this type
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New Balance Athletic Shoe Inc Case Study Samples
The case is about New Balance Athletic Shoe Inc. and how they are planning to increase their efficiency and quality in their operation processes through the implementation of lean manufacturing. At this same period, two of the leading shoe producers Reebok and Adidas have merged hence New Balance needs to focus on ways to counter this move in order to sell effectively.
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Introduction, example of a grand entrance li-nings emergence as a global chinese brand case study, resource-based view analysis on li-ning case study.
Li-Ning is a leading sportswear brand in the Mainland China and they aspire to be a world's established brand in the sports goods industry. The company has been successful in maintaining and increasing its market share in China while facing strong competition from Nike and Adidas. Direct resources to branding and product research and development for long term well being of the company.
A grand entrance li-Nings emergence as a global chinese brand case study example
Example of case study on under amour-nike case, executive summary, example of under amor management case study.
In the current global economies, organizations aim at achieving competitive advantage given the intensified competition in the global market. This can be related to the story of Under Armor Inc from 1996, where the founder Kevin Plank aimed at making superior T-shirts. The idea originated from the fact that he was a former student and football player in University of Maryland.
Under Armor Strategic Management
Example of sporting and athletic goods industry case study, competitive forces, case study on executive summaries and critiques, executive summary.
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Adidas Case Study | Handling Inventory Demands More Efficiently
With retailers demanding faster inventory replenishment turns, adidas set out to ensure that its 258-acre campus in Spartanburg, SC, could meet this demand. Honeywell Intelligrated designed and installed automated conveyor and sortation systems in the campus's two unique DCs, on-time and on-budget.
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CASE STUDY: adidas Staying True to Its Culture, adidas Got 40% of Its Most Impactful Systems Running on Kubernetes in a Year
In recent years, the adidas team was happy with its software choices from a technology perspective—but accessing all of the tools was a problem. For instance, "just to get a developer VM, you had to send a request form, give the purpose, give the title of the project, who's responsible, give the internal cost center a call so that they can do recharges," says Daniel Eichten, Senior Director of Platform Engineering. "The best case is you got your machine in half an hour. Worst case is half a week or sometimes even a week."
To improve the process, "we started from the developer point of view," and looked for ways to shorten the time it took to get a project up and running and into the adidas infrastructure, says Senior Director of Platform Engineering Fernando Cornago. They found the solution with containerization, agile development, continuous delivery, and a cloud native platform that includes Kubernetes and Prometheus.
Just six months after the project began, 100% of the adidas e-commerce site was running on Kubernetes. Load time for the e-commerce site was reduced by half. Releases went from every 4-6 weeks to 3-4 times a day. With 4,000 pods, 200 nodes, and 80,000 builds per month, adidas is now running 40% of its most critical, impactful systems on its cloud native platform.
For engineers at adidas, says Daniel Eichten, Senior Director of Platform Engineering, "it felt like being an artist with your hands tied behind your back, and you're supposed to paint something."
For instance, "just to get a developer VM, you had to send a request form, give the purpose, give the title of the project, who's responsible, give the internal cost center a call so that they can do recharges," says Eichten. "Eventually, after a ton of approvals, then the provisioning of the machine happened within minutes, and then the best case is you got your machine in half an hour. Worst case is half a week or sometimes even a week."
To improve the process, "we started from the developer point of view," and looked for ways to shorten the time it took to get a project up and running and into the adidas infrastructure, says Senior Director of Platform Engineering Fernando Cornago.
"We were engineers before," adds Eichten. "We know what a typical engineer needs, is craving for, what he or she doesn't want to take care of. For us it was pretty clear. We filled the gaps that no one wants to take care of, and we make the stuff that is usually painful as painless as possible." The goals: to improve speed, operability, and observability.
Cornago and Eichten found the solution with containerization, agile development, continuous delivery, and a cloud native platform that includes Kubernetes and Prometheus. "Choosing Kubernetes was pretty clear," says Eichten. "Day zero, deciding, easy. Day one, installing, configuring, easy. Day two, keeping it up and running even with small workloads, if something goes wrong, you don't know how these things work in detail, you're lost. For day two problems, we needed a partner who's helping us."
In early 2017, adidas chose Giant Swarm to consult, install, configure, and run all of its Kubernetes clusters in AWS and on premise. "There is no competitive edge over our competitors like Puma or Nike in running and operating a Kubernetes cluster," says Eichten. "Our competitive edge is that we teach our internal engineers how to build cool e-comm stores that are fast, that are resilient, that are running perfectly."
Adds Cornago: "For me, our Kubernetes platform is made by engineers for engineers. It's relieving the development team from tasks that they don't want to do, but at the same time giving the visibility of what is behind the curtain, so they can also control it."
Case in point: For Cyber Week, the team has to create a lot of custom metrics. In November 2017, "because we used the same Prometheus that we use for monitoring the cluster, we really filled the Prometheus database, and we were not able to reduce the retention period [enough]," says Cornago. So during the freeze period before the peak shopping week, five engineers from the platform team worked with five engineers from the e-comm team to figure out a federated solution that was implemented in two days.
In addition to being ready for Cyber Week—100% of the adidas e-commerce site was running on Kubernetes then, just six months after the project began—the cloud native stack has had other impressive results. Load time for the e-commerce site was reduced by half. Releases went from every 4-6 weeks to 3-4 times a day. With 4,000 pods, 200 nodes, and 80,000 builds per month, adidas is now running 40% of its most critical, impactful systems on its cloud native platform.
And adoption has spread quickly among adidas's 300-strong engineering corps. "I call our cloud native platform the field of dreams," says Eichten. "We built it, and we never anticipated that people would come and just love it."
For one thing, "everybody who can touch a line of code" has spent one full week onboarding and learning the platform with members of the 35-person platform engineering team, says Cornago. "We try to spend 50% of our time sitting with the teams, because this is the only way to understand how our platform is being used. And this is how the teams will feel safe that there is someone on the other side of the wall, also feeling the pain."
Additionally, Cornago and Eichten took advantage of the fact that as a fashion athletic wear brand, adidas has sports and competition in its DNA. "Top-down mandates don't work at adidas, but gamification works," says Cornago. "So this year we had a DevOps Cup competition. Every team created new technical capabilities and had a hypothesis of how this affected business value. We announced the winner at a big internal tech summit with more than 600 people. It's been really, really useful for the teams."
So if they had any advice for other companies looking to start a cloud native journey, it would be this: "There is no one-size-fits-all for all companies," says Cornago. "Apply your company's culture to everything that you do."
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- 1. A brand case study
- 2. Adidas; History of the brand • •
- 3. History cont. • The next 50 years saw 4 different owners and seeing the death of Adi, his wife and his son. There was time of trouble after the shipment of products to Asia was a flop and money was a problem, but the next owner Dreyfus, perfected the brand’s stability, and changed it’s guidance as company, bringing back Adidas’ original 3 Stripe design. • The Rap Group Run-DMC gave Adidas it’s big fashion based break, rather than sportswear, by wearing the brand profusely in music videos, interviews etc.
- 4. Brand Values • • •
- 5. Product life Cycle • Rising Stars (referring to the Boston Matrix) – the ‘rising stars’ of adidas are it’s high-end, most expensive of the lot footwear. This footwear is mostly the customizable sports shoes worn by celebrity status sports men and women. People see these idols wearing custom made Adidas footwear and think ‘If I customize my own pair of shoes, I can maximise my performance like my idol eg David Beckham.’ As soon as these are seen being worn, sales will grow (with those that can afford them) • Cash Cows – the biggest sellers that are the cheapest to make and buy, but keep the money flowing in. For adidas, this includes the low end fashion trainers, the standard sports shoes, and apparel such as shorts, jumpers and jackets.
- 6. Life Cycle Cont. • Question Marks – Where Adidas produces such a wide spectrum of goods, it’s hard to specify one area that isn’t getting enough attention. I’d say the ‘question marks’ of Adidas products were the expensive products they make for other sports other than football eg. Their TaylorMade adidas golfwear (because football boots and apparel is the biggest earner of Adidas). These products have a lot of potential to have a much higher market share, which because of performance technology, people will see as worth the money. • Dead Dogs – This section includes the products made by Adidas that are specifically for fashion, that will ultimately end up in the bargain bin, like this one here …
- 7. Dead dog Cont. • Shirts like this are Dead dogs, as they are not made by Fashion designers, they are made by Sportswear design- -ers. Leave the fashion for someone who knows what they’re doing!
- 8. Target Audience • The main target audience for Adidas is of around 13-30 year old consumers who are involved in any given discipline or sport. Adidas makes high end. High quality products for all sports, so this will interest this audience at it’s affordable price, especially if their discipline is football as a teenager (teenagers go mad for the new pair of Predator football boots released just about once a year). Mostly male based, and mainly working-middle class families or individuals. • Along with this audience, there is also the smaller audience of those who aren’t into sports. They shop at Adidas for the big logo’s and the look of the shoes for a fashion statement. These are between16-25, working- middle class both males and females.
- 9. Pricing strategy • Adidas adopt a premium pricing strategy in contrast to it’s competition. This premium pricing gives consumers more incentive to buy over it’s competition like Nike, Puma etc. This is because the higher priced tells the consumer that it’s better quality, and has the performance technology that Adidas is forever promoting. It can charge premium prices as it offers a different, higher-end ‘lifestyle’ than it’s competitors (an endless cycle caused by it’s high prices).
- 10. Marketing and PR • • • • http://www.adidas- group.com/en/investorrelations/strategy/adidas/default.aspx
- 11. Marketing and PR • The adidas group are intent in sticking to founder Adi Dassler’s spirit – make athletes perform better. This is the technique they have been using for years to reach out to the consumer – by being up to date, and almost in the future compared to the performance technology of competitors. • The campaign, ongoing today reflects this. The ‘Impossible is Nothing’ campaign has a long speech about reaching or achieving the impossible, selling the IDEA of this to the consumer.
- 12. Impossible is Nothing http://www.youtube.com/watch?v=9rTttFOWJV4
- 13. PR and Sponsorships • Sponsorships and endorsements are where Adidas spreads, the biggest celebrity endorsements being David Beckham and Lionel Messi of Football fame. • Rap Group Run-DMC released a song about Adidas called ‘My Adidas’, which expressed the groups love of their clothing (trainers and hoodies mostly). This sparked an idea in the owners, who struck a 1.6 million dollar endorsement partnership. They went on to design shoes and tracksuits for the company, becoming more and more linked to the brand, and helping expand the brand into rap fashion, building on it’s already booming sports industry.
- 14. Place and distribution • Adidas aren’t as picky and specific about what outlets distribute their clothing, and can be found in any good high-street in a range of shops. • Main outlets stock the whole range of Adidas products, broken down into spacious and specific sections (fashion, Football, Swimwear etc.). • Other than the specific ‘Adidas’ outlets, products can be found in different shops depending on what the product is. For example, the fashion trainers (the Cash Cows) will be found in shoe and fashion shops such as Schuh, Footlocker, Republic, tReds. Whereas you’d find the sports trainers placed in specific sections of sports outlets such as JJB Sports and Sports Direct (the displays of which are always the same)
- 15. Place Continued… • Adidas also distribute to online outlets such as Asos, based on it’s fashion premise. Here you would find products such as the hoodies, tracksuits and trainers that are the Cash cows of the company. • Overall, the ‘Cash cows of the company are widely distributed through internet and high-street outlets, where its less successful and upcoming products would only be found in the named outlet and the online store.
- 16. S.W.O.T Analysis • Strengths – - Effective celebrity endorsements from David Beckham, Lionel Messi and Run-DMC - Strong, Effective marketing techniques, focussing on the sports technology, promoting that if you buy Adidas, you’ll be better at sports - Knows it’s Target Audience well, and delivers what they want/need. - One of the leaders in sporting technology (Football boots one of it’s main incomes.) - Extremely recognizable Household name and logo.
- 17. Weaknesses • Focuses heavily on bringing out an extremely wide range of football boots. Too wide of a selection. • Good marketing techniques let down by small showing and distribution of advertising. • History. The links of the brand with Nazi’s in world war 2 are likely to put off some customers from buying. • Links with Sweatshops and unethical working conditions.
- 18. Threats • Nike’s growing market share in sportswear, mainly footwear. • Some endorsements going wrong. Basketball star Kobe Bryant has been in the tabloids for illegal activity, giving the brand the wrong sort of image they want to put across. • Growth of global and international sales and outlets could cause problems in inducing different marketing techniques to suit these differing demographics. • Cheap knock offs. ‘Two stripes’.
- 19. Opportunities • Growth of differing technologies gives the brand more platforms and mediums on which to expand their advertising. • Opportunity to always stay at the forefront of sports technology. • Expand fashion marketing through more fashion based endorsements rather than sports.
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Adidas Case Study – Marketing Mix & SWOT Analysis
Adidas was founded by Adolf Dassler and his elder brother Rudolf Dassler in the early 1920s and is now recognized as one of the most famous global manufacturers of sports products. Adidas is developing its products for serving the needs of the customers at the best possible level. Adidas works on its products by incorporating new fashion trends, technology and making them more sport-specific. Today, we are going to discuss the Adidas marketing strategy, marketing mix, and market analysis through SWOT analysis in this case study.
There are three main areas of marketing where Adidas is seeing an increase in their mix of sales and investment. First, the company is expanding into new places such as developing new products and services, enterprising in new fields, and moving from production to development for upkeeping. Second, Adidas’s presence on social media platforms is increasing as people are seeking out its products for fresh flavors and ingredients. And third, Olympics-related advertising will continue to be a major part of Adidas’s marketing strategy.
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Marketing Mix of Adidas
Here is Adidas marketing mix comprises of 4P’s of marketing: Product, Place, Price, and Promotion.
Product: This is a product that Adidas markets under its various labels such as energy boost, running, football training, tropical heat wear, etc.
Place: This is a place where these products primarily sold out depending upon the developed region.
Price: Adidas is aggressive in promoting price in order to enjoy a competitive position. In this area, Adidas believes the price will be dictated by the market’s demand and not its shortages or excesses. In 1964 when Adidas began pricing shoes at $12 vs Nike at $15 Shoe sales went down but once the price was set it stayed the same hence becoming more attractive towards prospective buyers versus new entrants with their much lower prices.
Promotion: This refers to the strategies of Adidas for attracting consumers to the purchase of its products, whether it is competition, direct marketing campaigns, or social media messaging and advertising.
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Adidas differentiation strategy
Adidas focuses more on the broad differentiation strategy. The corporate level strategy of Adidas focuses on innovation, trying to produce new products, services, and processes in order to cope with the competition. The group’s multi-brand portfolio gives them an important competitive advantage. This created a global sales function that is responsible for commercial activities and a global brands function that is responsible for the marketing of both brands.
The global sales function was also split into two departments, wholesale and retail. This catered to the various needs of both these business models. This has been done in order to sustain their corporate-level strategy for the long run so that these divisions could emphasize and work hard in their respective departments in order to make the most of their efforts.
They implemented a multi-brand strategy by having a diverse brand portfolio which allowed them to cater to all segments of the market from players to almost everyone. This helped them to keep a unique identity and concentrate on their core competencies.
Adidas digital marketing strategy
Adidas uses a straightforward digital marketing strategy to communicate with its current and potential customers. By implementing this strategy they have been able to take competitive advantage with their top competitor, Nike. By changing the behaviors of consumers with this digital transformation, Adidas has to change the way they work. The use of technology has helped Adidas connect with more consumers and build stronger relationships with customers.
There are 6 components that aid Adidas digital marketing strategy includes:
- Digital and technology
- High-speed manufacturing
- Personalized experience to create strong relationships with customers
- Open-source innovations and collaborations
- Strategic cities include London, LA, New York, Paris, Tokyo, Shangai.
- Improve portfolio of both brands i.e. Adidas and Reebok.
SWOT Analysis of Adidas
SWOT analysis is the method of measuring the organization and its environment whether internal or external. It is used as the first stage of planning which helps marketers to focus on the key issues that an organization can face.
SWOT stands for Strengths, Weaknesses, Opportunity, and threats. Adidas strategy analysis focuses on Strengths and Weaknesses are the factors that basically represent the internal environment of the company while the other two represent the external environment with direct and indirect impacts on the business.
- The brand recognition of the product it’s well-reputed.
- High-quality products.
- Provides a diverse range of products (shoes, bags, shirts, perfumes, toiletries, etc)
- Obeys environmental laws (Adidas has never been accused of pollution)
- Employees’ rights are safeguarded by Adidas’ policies and management.
Weaknesses
- Online stores are offered only to the USA or some locations in Europe.
- Customer services are not totally functional which creates problems especially in the case of e-marketing
- Price is interwoven to high quality.
Opportunities
- Possibility of outsourcing the web development and e-commerce/marketing to a third party.
- The growing market for sports apparel
- Joint Venture with partners around the world to increase participation in athletics.
- Unstable economic environment
- Competition in supply chain management level
- Nike’s strong reputation in the sports industry
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- CREATE A CAMPAIGN
Adidas Successfully Increases Brand Awareness for BOOST Technology with Agency MediaCom and Taboola
MediaCom Delivered 50% Uplift in CTR for Client adidas with Taboola Video
- 50% Increase in CTR After Working with Taboola Video Studio
- 25% Higher CTR than other video platforms
Adidas is the one of the largest sportswear manufacturers in the world. MediaCom is a trusted digital partner to more than 2000 global brands, working with adidas to create and promote adidas’ BOOST technology
Increase awareness for BOOST footwear technology separate from the ubiquitous adidas name in Israel.
Use Taboola Video to promote video content related to BOOST technology and create unique video content using Taboola Studio with overlaid CTA to drive clicks and conversions.
With Taboola, MediaCom was able to uplift CTR, increase awareness, and drive sales. The product shown in the video became a best-seller.
Introduction
Adidas, a leading global sportswear manufacturer, is a household name in Israel. With the challenge of highlighting their BOOST technology and separating it from the brand’s ubiquity, adidas turned to global agency MediaCom.
MediaCom utilized Taboola Studio to create striking video content on behalf of adidas, designed to educate and inform on the BOOST technology, and ultimately drive interest and purchases of BOOST footwear.
With Taboola, MediaCom Delivered Video Completions and Conversions for adidas
adidas’ goal was to highlight the craftsmanship of their BOOST technology, separate from their ubiquitous brand name. They had put forth efforts to do so in the past but saw no noteworthy return. MediaCom felt confident that Taboola would be the right partner to increase CTR and traffic for adidas’ BOOST campaign.
In order to optimize adidas’ video creative for the platform, MediaCom worked with the Taboola Video Studio to implement hot spots on the informational adidas videos. These hot spots provide consumers with CTAs at the exact moments they’d be most likely to click—when they’re looking for more information.
The Taboola Video Studio optimizes engagement and results by using creative best practices and a wide array of features like custom overlays, end-slates, creative consulting, and more.
Adidas Best-Seller Emerges After Using Taboola Video
Across this campaign, MediaCom displayed a variety of adidas footwear, but one product became a best-seller in stores. The black men’s model of the BOOST running footwear, which MediaCom promoted using Taboola Video, which was featured in the video created with Taboola Studio, became a best-seller during the time that the video ran.
MediaCom Leverages Taboola for a Variety of Clients
Through their use of Taboola for their client adidas, MediaCom was able to discern ways that Taboola could also be an asset for more clients on their roster.
MediaCom worked closely alongside their Taboola account management team to ensure that all client needs were met, and that creative tools were being used to their maximum potential to produce the most effective video.
We were pleasantly surprised with the results we saw. Compared to past campaigns for BOOST Technology, the lift on those who saw the ad, and those who clicked through, was impressive
- Sustainability
Adidas: How to keep running fast in a post-Covid-19 world?
By the end of 2019 the adidas Group was solidly the world’s second largest multinational in the sportswear manufacturing industry. Following the successful implementation of a digital transformation initiated in 2015, the company enjoyed years of sustained growth and high profitability in the 2016-2019 period, strengthening its brand desirability and increasing sales volumes, especially in the online space. It ended fiscal year 2019 stronger than ever and its chief executive officer (CEO), Kasper Rørsted, was very optimistic about what the future would hold. The outbreak of the COVID-19 pandemic at the beginning of 2020 radically changed the business landscape. adidas was severely hit by the lockdowns imposed by governments. The new measures of social distancing were expected to have a lasting impact on consumer habits and consequently on the operations of companies such as adidas. Thus, unimaginable only few months before, the company’s first earnings call of 2020 led by Rørsted focused on the negative results obtained in the preceding few months and the high degree of uncertainty looking forward. Aware of the many challenges facing the company, Rørsted had to decide which strategic initiatives he should prioritize to future-proof the company and keep it on a steady growth trajectory in a post-COVID-19 world.
• Analyze the extent to which digitalization has changed the retail sector. • Analyze the extent to which the COVID-19 pandemic has revolutionized the business operations of companies such as adidas. • Explore the need for a retailer’s strategy to be adjusted in view of the pandemic and the ongoing digital disruption of the retail world. • Explore strategy in an environment characterized by a high degree of uncertainty associated with the COVID-19 pandemic.
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- All Candidates
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Interviews at adidas
Interviews for top jobs at adidas.
- Sales Associate (111)
- Intern (69)
- Retail Sales Associate (67)
- Internship (40)
- Seasonal Sales Associate (24)
- Assistant Manager (16)
- Store Manager (15)
- Marketing (15)
- Marketing Manager (13)
- Manager (12)
- Project Manager (12)
- Software Engineer (11)
- Sales Assistant (10)
- Director (10)
- Product Manager (8)
- Vendedor (8)
- Business Analyst (8)
- Senior Manager (8)
- Estagiário (8)
- Intern Marketing (7)
- Team Leader (7)
- Human Resources (7)
- Analyst (7)
- Designer (7)
- Sales Consultant (7)
- Trainee (6)
- Praktikant (6)
- Finance (6)
- Data Analyst (5)
- Senior Project Manager (5)
Feb 28, 2023
Seasonal Sales Associate Interview
Anonymous Employee
I interviewed at adidas
Very straightforward and easy. Offered me the job on the spot. Everyone is nice and lighthearted. The interview asked basics like "tell me about a time when you gave great customer service"
Feb 26, 2023
Estagiário Interview
Anonymous Interview Candidate
as entrevistas são feitas através de programas, não existe nenhum contato direto com entrevistadores e caso haja algum problema com o programa usado para a entrevista, como eu tive, não uma maneira de reportar.
- como você se descreve? projetos pessoais? o que você sabe da marca? Answer Question
Feb 25, 2023
Product Management Internship Interview
You are asked to prepare the interview by looking at their careers website. Then they ask you personal questions about your past experience and link them to the values at the company.
- When was one time you displayed creativity? Answer Question
Feb 24, 2023
Retail Salesperson Interview
It was tough because there are many candidates and applicants, many challenging interview question has been asked to test my soft skills and hard skills. Some examples will be provided in the text box below.
- Q: Tell me yourself in 2 sentences Answer Question
Feb 23, 2023
Senior Marketing Specialist Interview
I applied online. I interviewed at adidas
Apliquei pelo site da Adidas. Recebi a ligação do RH que fez uma rápida entrevista pelo telefone e marcou outra entrevista para o dia seguinte. Ao final da segunda entrevista disseram que iriam dar um retorno em até uma semana e nunca mais ouvi da empresa.
- Me fale um pouco sobre você. Answer Question
Feb 20, 2023
Assistant Manager Interview
Interview process is efficient and in orderly manner. First interview with HR, next interview was arranged efficiently with hiring manager and senior manager. Interview was first held face to face and subsequently video call.
- What kind of employer I would like to work with Answer Question
Feb 17, 2023
The interview process was fine, I originally applied for a sales associate position. During my interview I was offered a position for assistant manager, but I know had to go through the process for that position. I was denied employment after they ran, my credit score.
- , if they can run a background and credit check 1 Answer
Feb 9, 2023
Senior Platorm Software Engineer Interview
proceso bastante bien entrevista con RRHH prueba técnica entrevista con responsables todo en general bien fueron muy amables y transparentes con el puesto, gracias a ello lo rechacé ya que no iba conmigo este puesto.
- típicas preguntas, que has hecho, has tocado esto, has tocado lo otro Answer Question
Feb 5, 2023
Intern Interview
good The interview process was really good I enjoyed showcasing my knowledge of adidas and having good conversations with cool people, would definitely do it again because I had fun speaking with some of their managers.
- dsa database sql python programing Answer Question
Jan 15, 2023
Two rounds of interview - virtual and zoom interview with Manager (and also had to prepare a given case study on the company and present during the zoom interview) Questions asked were pretty straightforward
- 'what do you like about Adidas?' 'tell us about yourself' 'what do you think the brand can do to improve its marketing strategies' Answer Question
adidas Interviews FAQs
Glassdoor users rated their interview experience at adidas as 70.0% positive with a difficulty rating score of 2.65 out of 5 (where 5 is the highest level of difficulty). Candidates interviewing for Intern and Seasonal Sales Associate rated their interviews as the hardest, whereas interviews for Retail Sales Associate and Sales Associate roles were rated as the easiest.
The hiring process at adidas takes an average of 32 days when considering 885 user submitted interviews across all job titles. Candidates applying for Retail Sales Associate had the quickest hiring process (on average 12 days), whereas Intern roles had the slowest hiring process (on average 36 days).
Phone Interview: 20.55%
One on One Interview: 19.77%
Group Panel Interview: 15.59%
Presentation: 12.47%
Background Check: 9.36%
Drug Test: 6.59%
IQ Intelligence Test: 5.03%
Skills Test: 4.46%
Personality Test: 3.47%
Other: 2.69%
Popular Careers with adidas Job Seekers
Work at adidas share your experiences.
adidas Photos
Affiliated Companies
Expert Career Advice
Find a Great First Job to Jumpstart Your Career
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Write a Resume Recruiters Can't Resist
How to Prepare for Your Interview and Land the Job
adidas Job Seekers Also Viewed
Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job that’s right for you.
Award winner: adidas: How to Keep Running Fast in a Post-COVID-19 World?
This case was the Overall Winner at The Case Centre Awards and Competitions 2022 . #CaseAwards2022
The authors gave a webinar about writing and teaching the case on 24 March 2022. Watch it back here .
View photos and video from the awards presentation on 28 April 2022 .
Author perspective
Instructor viewpoint, who – the protagonist.
Kasper Rørsted , CEO of the adidas Group , the global apparel sports company.
From 2016 to 2019, the adidas Group had performed well and the period was one of sustained growth. In particular, the company had chosen to focus on a strategy of digitalisation by enhancing its digital presence and engaging in novel ways with its customers. But the first quarter of 2020 brought unexpected challenges for Rørsted and adidas.
With the spread of the coronavirus pandemic in the early part of 2020, social distancing and national lockdowns inevitably impacted the group’s brick-and-mortar stores and saw a massive spike in online shopping. Rørsted felt the company had already done a lot to embrace this digital acceleration, but was it enough to future-proof the company?
The case is set in April 2020, the early days of the coronavirus pandemic.
Adidas was founded as ‘Adi Dassler adidas Sportschufabrik’ in Herzogenaurach, Germany in 1949 and still is headquartered there today. During the 1950s, the company’s presence as an international brand grew and they were quickly exporting to over 40 countries. By 2020, they were the leading sportswear manufacturer in Europe and second in the US only to rival Nike Inc.
Rørsted believed that, in the medium-term, adidas’ innovative digital strategy had been successful in navigating the radically changing retail landscape. But he wanted to ensure the company’s long-term success in this unparalleled period of uncertainty and accelerated digitalisation. What more could he do to keep adidas on a steady growth trajectory in these uncertain times?
AUTHOR PERSPECTIVE
This is the first Case Award for authors Niccolò Pisani and Ornella Lupoi, and the 41st award for IMD, including five Overall Case Awards (1993, 1995, 2002, 2014, 2022).
Winning the award
Niccolò said: “This means a lot to me. It feels very rewarding knowing that so many colleagues have found our case valuable for their own teaching and students from all the world have used our case in their learning journeys.”
Case popularity
He reflected: “I think the case has been so popular for three main reasons.
- Firstly, adidas, beyond being an iconic brand, offers a great business setting to discuss how disruptive the pandemic has been and, in turn, how this has affected companies’ strategies to remain competitive in a post-COVID-19 world.
- Secondly, the case triggers an in-depth discussion on fundamental trends driving change in the business landscape nowadays, from digitalisation to sustainability and the retail disruption, and how these can inform the strategic choices that companies such as adidas need to make to future-proof themselves.
- Thirdly, the case has a clear story that caters for different audiences, which certainly contributed to its widespread adoption.”
Writing the case
The authors said: “We started working on the case in the summer of 2020 and published it in September of that year. So, we began working on the case when the pandemic was still in its early days. Realising that COVID-19 was going to have such a long-lasting impact on so many companies and disrupt entire sectors made us understand that adidas’ setting was ideal for a strategy and general management case study on the effect of the pandemic. Getting the case out at the right time turned out to be important too.”
Case writing advice
Niccolò said: “Keep the structure of the case simple and straightforward. Ultimately, you want to make sure students get a clear picture of the situation and understand the overall story. A simple structure that covers all the basic information in an orderly manner will ensure students understand the story of the case and will make it way more enjoyable for them to work on it.”
Teaching the case
He commented: “I have used the case in a variety of programmes at IMD, from the EMBA to different open and custom programmes. The experience has always been very positive and rewarding as participants have greatly enjoyed the classroom discussion.”
Instructor VIEWPOINT
Discover how this case works in the classroom.
The authors
The protagonist
Educators can login to view a free educator preview copy of this case and its teaching note.
Case video trailer
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Discover more
Adidas uses Display & Video 360’s connected TV solutions to show the world it is “Ready for Change”
- Display & Video 360
- Reassert Adidas’ values and commitment to promote justice and equality
- Create a unique and meaningful connection with their audience as they shift to connected TV
- Be responsive to social context and launch a connected TV campaign in a matter of days
The Approach
- Secured premium connected TV deals
- Harness programmatic technology to scale messaging quickly
- Centralize media buys to make every dollar count.
The Results
- Reached more than 24M unique viewers on connected TV
- Saved time thanks to automated workflow
- Increased reach within budget limits by cherry picking the 37.5% most relevant impressions
Adidas , one of the largest sportswear manufacturers in the world, aimed to build on its core belief that sport has the power to change lives and bring diverse people together.
With limited time and marketing budgets, the Adidas team chose to expand on their "Ready For Sport" brand platform and launch their “Ready for Change” campaign. In just a few days, Adidas’ media agency, MediaCom , had to pick the most efficient advertising channels and technology to reach Adidas’ audience in a unique and meaningful way.
Shifting to connected TV
With the interruption of live television programming, people have spent a remarkable amount of time watching connected TV content at home in the last few months. So, in order to connect with athletes and sports fans as they were enjoying on-demand content, Adidas used Display & Video 360 to secure premium connected TV deals and engage with over 24 million viewers across Hulu, ESPN and Roku.
Harnessing Programmatic Technology
To respond to their audience in the most timely manner, Adidas’ marketing team was quick to launch their new film reiterating their corporate values. In order to rapidly amplify this new message, MediaCom chose to harness programmatic technology to ensure high-speed advertising execution.
By using Display & Video 360 , they fast tracked the process of negotiating Programmatic Guaranteed deals with major publishers and setting up the campaign. They also cut down administrative complexity thanks to Display & Video' 360's unified billing.
“Now, more than ever, it is important to ensure we have the right messaging at the right time. Relying on Display & Video 360’s programmatic technology to secure CTV ads allowed us to rapidly adjust our ad strategy and stay in tune with our audience.”
Kat Miller , Director, Brand Media, Adidas
Centralized Media Buying
Consolidating their connected TV guaranteed deals into Display & Video 360 allowed Adidas to manage frequency across all channels and limit media waste. Based on their frequency management goal, Display & Video 360 only bid on the 37.5% most relevant impressions for Adidas. Thanks to this technology, Adidas maximized the number of viewers they reached while respecting their budget.
“Our consolidated buy in DV360 automatically reinvested our holistic frequency management savings and drove incremental unique reach for Adidas.”
Benny Guan , Director, Programmatic Mediacom
This consolidated approach also allowed Adidas to avoid a common connected TV advertising pitfall – repeatedly reaching the same viewers with the same ad.
Looking Ahead
Building on this experience, to support their ZX campaign, Adidas is now utilising Programmatic Guaranteed to test another channel in high-demand – audio. Frequency management in Display & Video 360 has also continued to help Adidas reinvest cost savings into additional working media.
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COMMENTS
"The case shows how even leading companies such as adidas need to rethink their strategic priorities to future-proof themselves in a post-COVID-19 world," said Pisani. "The strategic choices that companies make now will be critical to remain competitive in the aftermath of the pandemic."
About Adidas 1. Product Strategy of Adidas 2. Price strategy of Adidas 4. Promotion Strategy of Adidas 5. People Strategy of Adidas 6. Process Strategy of Adidas Conclusion Adidas uses "Impossible is Nothing" as its tagline and has even proved it for itself.
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It ended fiscal year 2019 stronger than ever and its chief executive officer (CEO), Kasper Rørsted, was very optimistic about what the future would hold. The outbreak of the COVID-19 pandemic at the beginning of 2020 radically changed the business landscape. adidas was severely hit by the lockdowns imposed by governments.
adidas interview details: 1,554 interview questions and 1,302 interview reviews posted anonymously by adidas interview candidates.
Answer (1 of 2): Adidas is a Germany shoe, attire, and clothing organization that likewise owns Reebok, Taylor Made, and Rockport. Adidas is the biggest athletic apparel organization in Europe and is the second just to Nike as the biggest active apparel organization on the planet. The organizatio...
''I like to use this case study in my teaching because it represents a smart interplay between the retailer's strategy and a response to the consequences of COVID-19 disruption, and it offers insight into the ongoing digitisation in the retail sector. The exciting journey of adidas provides many opportunities for lively classroom discussion.
Centralized Media Buying. Consolidating their connected TV guaranteed deals into Display & Video 360 allowed Adidas to manage frequency across all channels and limit media waste. Based on their frequency management goal, Display & Video 360 only bid on the 37.5% most relevant impressions for Adidas. Thanks to this technology, Adidas maximized ...