Adidas Marketing Mix (4Ps) Strategy

Adidas is one of the leading sportswear and goods brands. Adidas has always strived to provide
the best of the best goods and equipment to the athletes through its innovations including the
first shoes designed for ice and the first multi- studded shoes. The product strategy in the
marketing mix of Adidas covers its entire product line across various sports and types.

Pricing
Adidas has a scrupulous set of customers and it strives to give the best products and experience
to them. Due to its continuous innovation in the products that leads adidas to top notch
performance, that’s why we are charging premium price. Adidas focuses on the top quality
their products are customized according to the need in the market. However, Adidas never
compromised with its quality and standards, currently adidas is using two strategies i.e.

 Competitive pricing strategy

For run of the mill products, Adidas uses competitive pricing keeping in mind competitors
like Nike, Reebok and Puma.

 Skimming pricing strategy

For products which are newly introduced in the market and are uniquely designed, Adidas
uses skimming price

Pricing for Revised target market

Value based pricing strategy.
The target customer of adidas is upper middle class as well as high end customer. Adidas never
compromise in two things that is quality and innovation, in today’s world, where the
expectation of every customer is high from the brand because of the competition, Adidas is
continuously working on these two tools to beat other competitor in the market. The
advantages of value-based pricing strategy allow Adidas to know the consumer insights about
the product i.e. what they are expecting from Adidas to best deliver in the market.

The upper middle class and high-end customer are ready to pay the high prices only when they
will get value in return. It can also help you prioritize your customers in other facets of your
business, like marketing and service and also can boost customer sentiment and loyalty. There
are some advantages of value-based strategy for adidas.

Company can also forecast their product demand in the market that will definitely help in the
supply and demand management and ultimately this all will lead to the Increased profit. Here
are some points about how adidas can accomplished goals by using this strategy

 The willingness of customers to pay: This strategy only works when the customer is
willing you to pay against the price, to get the customer insights about the product and
 price before setting the price. To become more acquainted with your clients: Your
clients are the last purchasers of the item their point of view matters a great deal in the
creation of the item and choosing the price of the item. This will benefit your customer
before you enter your product in the market; you are taking one step forward to the
success of the company.
 Make the best item: Value based Pricing isn't just about the cost of the item, with the
assistance of this evaluating procedure, you can realize what your customer need and can
make items to satisfy their necessities.
Our product category for Pakistan will be as follows:

Youth: 8-12 Years Old

Children: 6-8 Years Old

Price: Rs 3k and Above

Products:

Footwear Category will be launched in Pakistan

Place
Adidas is the leading player in the shoe industry due to its strong distribution channel and well
throughout selling places. The reason for its success is its commitment to quality and production
capabilities and understanding the market dynamics. The brand has ensured that the customers
get the highest quality product with timely delivery through its retail outlets in Pakistan. Adidas
has outsourced most of its production facility with over 700 independent factories around the
world (Adidas Group). The company has 2500 own retail outlets, 15000 mono branded
franchise stores and more than 150,000 wholesale doors for customer touchpoints (Adidas
Group).

Adidas has multi layered supply chain system with 80% In Asia with various types of business
partnerships. It works on long term partnerships with its strategic suppliers working with the
company for more than 20 years (Adidas Group). The suppliers are selected by Adidas quality
standards and performance criteria which are regularly measured and reviewed. Adidas global
ecommerce business is fastest growing distribution channel with 36% sales in 2019 (Marketing
Week,2019).

Thus, distribution channels and places where Adidas will reach our target audience in Pakistan
will be as follows:
Channel 1:

Adidas Retail End Customer

Manufacturing
Outlets

Channel 2:

Multi Brand
Manufacturing Distributor
Showrooms

Channel 3:
Adidas
Manufacturing Website /Online End Customer
Websites /

Adidas Packaging
The packaging is one of the most important components of any product. It is a kind of value
addition that enables the brand to charge premium prices due to its premium packaging.
Therefore, it is important to focus on the packaging as well while considering the overall brand
image.

Why packaging is important for Adidas?

Adidas is a premium brand of sportswear. It offers a variety of different range of products that
fall under the sportswear and compliments the athletic brand image that the brand itself has
created. Adidas, being one of the largest multinational companies in this particular segment of
the market, offers fairly expensive products. Its footwear is one of the costliest products from its
product category. When a product is positioning itself to be one of the premium brands then
subsequently, it will also be focusing on its product packaging because the packaging defines
and completes the brand image. A person purchasing a $200 would not expect the packaging of
the shoes to be made out of cheap and light cardboard. The customer has a perception that the
brand would provide the product in a good, strong, but sleek packaging. Therefore, it is very
necessary for the brand to focus on the packaging of their shoes.
Although, if the shoes are in regular usage, the customer might not be using the packaging of the
footwear often, and even the product itself is not displayed on shelves with the packaging on.
However, the initial phase of unboxing the product will develop the customer’s experience of the
brand. Small details that are related to the brand builds up the customer experience of the
purchase and usage of the product. If the customer feels satisfied with their purchase and post-
purchase dissonance is avoided, then there is a greater chance that the customer will return to
make the purchase again.

Adidas Promotion
To attract new and existing customers and promote new product line along with the reminder of
existing products available at Adidas, special offer or discount, like; flash sale, limited time offer
or recurring sale can be offered. This strategy will entice new customers and aware them about
Adidas products; new and existing, making it easier existing customers that Adidas has
something new for them to wear.

This picture is an example of Adidas already using sales promotion tactics in Dubai. The events
like this drive quite an amount by causing quick sale situation.

Marketing Audit
Marketing Audit & Planning’ has emerged as an important area of research in the recent period.
This Report has been prepared for the Adidas Group. Adidas has been chosen because it is a
globally established brand and therefore, has several areas of marketing audit that can be
explored. The research on the marketing audit has been carried out through a literature review,
journals, and magazines and by studying the official website of Adidas.

Adidas was started in 1920 by Adi Dassler because of his passion for sports and shoe making
and with three guiding values in mind – to manufacture the best shoe to serve the needs of sport,
to protect the athlete from injury, and to make the product long-lasting.

Adidas is a global business organization with innovation and design leaders. Core strengths of
Adidas are strong retail footprint, huge success at FIFA 2010 and entry into emerging markets,
though it needs to improve its performance in the Chinese market and its dependency on third
party manufacturing. After Reebok’s revival and future sponsorship agreements, the company is
looking forward to a new milestone in coming days. However, its operations in the current
environment are affected by many external factors – political, economical, social and
technological, etc
The present profits and sales of Adidas have decreased in the past year from 5,256(Million Euro)
to 4,712(million euro). Therefore, it is recommended that the company explore new vistas and
expand into wider markets that are available to it right now. With further

development of the company’s marketing strategy and business plans Adidas can grow to be the
largest brand in the market, not only the sports market but also the general market of footwear,
clothing and accessories.