Marketing strategy of Adidas and Adidas Target Market
“CREATING THE NEW”
tHats the mantra “Adidas” – The second largest Sportswear manufacturer in the worlds lives by. The brand believes that, through sport, they have the power to change lives.
In this article we not talk about how big “Adidas” is, what is its net worth, how did it got its name .. blah blah blah…. one can use Wikipedia for that
This article will give you unearth some interesting facts as to how well the brand has performed in the past, how it managed to ward off its competitors like Pune, Nike and what has been the strategy, be it the business strategy or marketing strategy of Adidas, that made it come out stronger than ever. Also, what is Adidas competitive advantage and what is the primary Adidas target market?
ON A CLEAR MISSION – Adidas Competitive Advantage
There are times when companies don’t have a clear vision or a mission they tend to drift apart. Thankfully that’s not the case with Adidas.
Adidas wants to be the best sports company in the world. Best in the products they design, the service they provide and the experience they offer to their customers, partners, etc.
Having a clear mission and a strong plan to make it happen is what is the Adidas competitive advantage.
WITH A SOLID PLAN
A good mission and vision is nothing without a solid plan and this is where ‘Creating the New’ comes in. It is not only the attitude that leads the company into the future, but it is also the name of Adidas strategic business plan to accomplish the mission. “Creating the New” in essence is what differentiates it from the rest and it Adidas competitive advantage.
The core of “Creating the New” is the ambition of the company to drive top- and bottom-line growth by significantly increasing brand desirability.a
To achieve this business strategy Adidas followed a plan that is based on three strategic choices:
- Speed – Keeping customers at heart of everything the company does, Adidas ensures that its customers find their desired products where and when they want them.
- Cities – Owning to the target market of Adidas, the company zeroed down the six key cities in which they want to over-proportionally grow share of mind, the share of market and share of the trend: London, Los Angeles, New York, Paris, Shanghai, and Tokyo.
- Open Source – Collaboration and Innovation – This is a major leg which led to the success of Adidas. Lets put a pin on this for now and we will discuss later how the company successfully partnered with Athletes, partners to co-create the future of sports and sports culture.
The razor-sharp business strategy and clear future plans to achieve that strategy/mission is the main Adidas competitive advantage.
WHO IS ADIDAS’ TARGET MARKET TODAY?
After the company’s strategy and mission, comes the target market the company wants to focus on for the efforts that it wants to put in.
With a long history of providing high-quality athletic sportswear for athletes, Adidas target market is sports participants, including those at the highest level of their sport, as well as non-athletes who are inspired by or really love sports.
Adidas target market falls within the 20- to a 29-year-old age group who are athletes or are passionate about sports and this segment is considered as the strongest consumer market. The company is focused on targeting and strengthening its brand with the next generation of athletes in the 14- to 19-year-old age group. Adidas believes this target group is the most influential consumer group in the world.
Check out the positioning of adidas
WHAT IS THE MARKETING STRATEGY OF ADIDAS?
After discussing the business strategy of Adidas, Adidas target market and Adidas competitive advantage comes the Marketing Strategy of Adidas.
Collaboration:
You must have surely heard of “Yeezy’s” and Adidas Pharell William sneakers, these were the major reasons for Adidas resurgence.
Adidas backed powerful endorsement contracts with some powerful non-athlete superstars like Kanye West and Pharrell Williams and managed to very well captialize of these names by promoting them left right and center.
This Marketing strategy of Adidas worked so well for the brand that its competitors like Puma followed the same suite and signed-in famous personalities include popstar Rihanna for their line of sportswear.
Innovation:
Adidas, ranked No. 3 in global sales in the Apparel/Accessories category in Forbes World’s Largest Public Companies list, behind only Christian Dior/LVMH and Nike, just announced that by 2024 it would use only recycled plastics in all its shoes and clothing.
The strategy to move to use recycled plastics for their shoes and clothing is because of the company’s vision to get rid of virgin polyester overall by 2024.
This strategy is not just going to have an impact on Adidas but also have profound implications in the overall fashion industry.
A New Strategy: Limiting Supply
Popular Adidas shoe models such as the “Stan Smith” and “Superstar” have been major contributors to Adidas’ massive revival over the past few years, which have been supported by the aforementioned endorsements and innovative marketing campaigns.
While other styles such as the Ultra Boost are gaining market share at a massive rate, Adidas is actually limiting the availability of popular shoes (the two flagship sneakers just mentioned), and two models that many consider “evergreens” in Adidas’ portfolio.
The prices go up when the demand is high but the supply is low – Simple economics rule we all studied in school but Adidas applied it in their growing years. 🙂
This kind of move, which has already worked well for Adidas in the past, has the potential to help Adidas’ merchandise margins, which have already been significantly expanding recently. As reported in the past earnings release, Adidas’ gross margin has increased by a few hundred basis points, and the recent moves may indicate an attempt to push margins even further if Adidas’ supply limitation strategy works.
However, the decision to limit the supply of some sneakers may also be a proactive move to avoid overexposure and excessive discounting of Adidas’ products. The number of discounts on Adidas products has increased recently, and the decision to limit the supply of some key products may be a response to the growing pricing pressures generated by excessive supply.
Social media:
Social media has been the focus of attention for the brand when it comes to interact and connect with the customers. Adidas remains active through the traditional channels, its own website as well as the social media.
Adidas has active Facebook and Youtube channels where it uploads thousand of promotional videos for its products.
On Twitter too, the brand has several accounts active including Adidas original, Adidas US and Adidas football that it uses to stay connected with its fans and followers. The core focus of all its marketing efforts is to bring energy to sports and help athletes achieve.
However, now that it has revamped its strategy and focused its efforts on key areas, results have started coming in the form of financial success. While this could mean an increased challenge for both Nike and Under Armour, Adidas still has a long way to go to achieve its mission.
This concludes the marketing strategy of Adidas, Adidas Target market and Adidas competitive advantage.
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