Positioning of Adidas
Understanding the Segmentation, Targetting and Positioning of Adidas
Adidas AG (stylized as ɑdidɑs since 1949) 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.
In this article, we will talk about the Positioning of Adidas and how it segments and targets the market and then position itself differently for each market segment.
Let’s first understand what does Adidas logo mean because a company’s logo is the building block of company’s positioning:
meaning of Adidas logo :
Old Logo ( The Trefoil): The icon was built from three radiating leaves with the now-ubiquitous three stripes running through the lower half of the emblem. The Logo communicates the company’s aspiration for growth in the ever-changing diverse market.
Adidas positioning statement :
Adidas’ positioning is based on three strategic choices “Speed, Cities, and Open Source”
- Speed – How we deliver: Deliver customers with fresh and desirable products where and when they want them.
- Cities – Where we deliver: Target cities which are shaping the global trends and customers’ perception, perspectives and buying decisions.
- Open Source – How we create: Collaborate and Innovate – Open the doors of our brands inviting athletes, consumers, and partners to co-create the future of the sport and sports culture with us.
ADIDAS MISSION STATEMENT :
To be the best sports company in the world – By designing, building and selling the best sports products in the world, with the best service and experience, and build a positive share of mind among consumers during this course of action.
Interesting read: How to develop an effective SEO strategy using theme cluster model
MARKETING MIX OF ADIDAS:
Click on the link to learn about the marketing mix of Adidas
positioning of ADIDAS
Market segmentation is the process of dividing up mass markets into different groups of similar needs and wants. The motive behind segmentation is Get to know the customer in a detailed manner, gain a competitive advantage and then be able to serve the customers’ needs and wants in a better way.
Adidas uses different types of segmentation to break a bigger market into small customer groups.
1. Demographic Segmentation:
Segmentation according to demography is based on consumer- demographic variables such as age, income, family size, socio-economic status, etc.
Mainly Adidas targets young consumers between 14 – 40 years of age group. Adidas’ brand equity is not just confined to this customer segment, the brand is quite popular and is liked by consumers with age group between 40 -65 as well.
Adidas offers different sub-brands like Adidas Originals, Adidas Neo etc which targets different customer segments.
Adidas Neo: It is the newest sub brand which was launched by Adidas to target the customers aged between 14-19 years of age. Adidas offers stylish, fresh and young products to please this customer segment. The price point of the products under Adidas Neo is competitive thus allowing the brand to reach out to a larger customer base.
Adidas targets both male and female customers and offers premium quality sports products.
2. Psychographic Segmentation :
Adidas uses psychographic as one of their main segmentation. In order to create a premium positioning among consumers, Adidas targets upper-middle-class consumers to affluent consumers.
Adidas’ sub-premium to premium pricing strategy and superior quality products helps the brand target its desired customer segments and create a premium positioning in the minds of its consumers.
After segmentation, the company needs to decide on the Targeting strategy. Companies need to select the market segments that they want to focus on and put in their future business strategy. The marketer faces a number of important decisions:
- What criteria should be used to evaluate markets?
- How many markets to enter (one, two or more)?
- Which market segments are the most valuable?
Below are three factors that are essential for evaluating a potential market segment.
- Segment size and growth
- Segment structural attractiveness
- Company objectives and resources.
Above mentioned are the few potential market segments that Adidas chooses to target for driving their business strategy, sales and marketing activities.
Positioning is the final step in the S-T-P planning approach; Segmentation→ Targeting → Positioning; a core framework for developing marketing plans and setting objectives
On finalizing the market segments that the company wants to target, the marketer’s next step is to design a marketing program (also known as the marketing mix) that will resonate with the target market or markets.
Adidas no longer portrays itself as a mere sports brand but as a Creator Sports Brand
In 2018, Adidas launched its “Calling All Creators ” campaign in which they featured roundtable stories from the world’s most influential athletes, designers, and musicians in sports culture—all connected by a passion to create. They’ve also invited everyone to participate in what they call “Futurecraft,” a dedicated initiative to innovate across all elements of the production process for creators by creators.
Calling all creators: Game changers. Difference makers. Boundary breakers.
Super serious sports aren’t for everyone. And with its position as “The Creator Sports Brand,” Adidas has seriously opened up the playing field.
This concludes the positioning of Adidas
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