Subject

International Marketing & Brand Management

(EIB 549)

Group Assignment on
“Adidas, a Sportswear Company, and its Marketing Strategy”

Submitted to
Dr. Md. Kamal Uddin
Professor
Department of International Business
Faculty of Business Studies
University of Dhaka

Submitted by
Name ID
Md. Ishfaq Zaman 801414065
Md.. Mehedi Hassan 801827009
Md. Fahim Akhter 801827016
Ananya Dey Puja 801827026
Faisal Nasirul Huq 801928011

Date – November 29, 2021

 Table of Contents

SN Details Page No.

1 Introduction 1-2

2 Marketing Environment of Sportswear Industry 2-3

3 Marketing Strategy of Adidas 3-10

4 SWOT Analysis of Adidas 10-14

5 Conclusion 14-14

6 References 15-15
1. Introduction:

Adidas or, Adidas AG since 1949 is a German 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. Adidas' revenue for 2018 was listed at €21.915 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 Gebrüder Dassler Schuhfabrik ("Dassler Brothers Shoe Factory"). In
1949, the brothers split where Adolf created Adidas, and Rudolf established Puma, which
became Adidas' business rival. Adidas AG is the holding company for the Adidas Group,
which consists of the Reebok sportswear company, 8.33% of the German football club
Bayern München, and Runtastic, an Austrian fitness technology company.

Figure: Current Logo of Adidas Figure: Current Logo of Reebok

The different types of products sold by Adidas are –

i. Apparel

Adidas sells a range of clothing items like men's and women's t-shirts, jackets, hoodies, pants
and leggings.

ii. Sportswear

 Association football: Where the main focuses of Adidas has always been football
kits, and the associated equipment. They are the major global supplier of team kits for
international association football teams and clubs. They also make referee kits that are
used in international competition and by many countries and leagues in the world.
 Baseball: They provide baseball equipment and sponsorship to numerous players of
Major League Baseball, USA and Nippon Professional Baseball in Japan.
 Basketball: They provide shoes and uniforms to the National Basketball Association
(NBA), USA.
 Cricket: Adidas began manufacturing cricket footwear in the mid 1970s, with their
initial target market being Australia. Currently they produce many cricketing items
like Bats, Pads, Gloves etc.
 Golf: Adidas Golf manufactures golf clothing, footwear, and accessories. Men's and
women's equipment includes footwear, shirts, shorts, pants, outerwear (wind suits),
base layer and eyewear.
 Gymnastics: They provided men's and women's gymnastics wear.

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Other sports where Adidas manufacture and provide kits and sports item are Ice hockey,
Tennis, Kabbadi, Skateboarding, Running, Lacrosse etc.

iii. Accessories

Adidas also designs and makes slide-style sandals, mobile accessories, watches, eyewear,
bags, baseball caps, and socks. As well, Adidas has a branded range of male and female
deodorants, perfumes, aftershave and lotions.

2. Marketing Environment of Sportswear Industry:

Sportswear is defined primarily as apparel and footwear made for sports participation, though
it now also includes casual clothes worn by people for daily activities. The product types sold
by sportswear industries are – i. Footwear ii. Wearables iii. Apparels. The footwear
contributes to about 33.27% of the total market share of the sportswear industry. The global
market size of the sportswear industry has grown from US$145 billion in 2007 to US$166
billion by 2014. The global sportswear market size was US$ 160.61 billion in 2020 which
was due to Corona pandemic exhibited a decline of 10.6% as compared to the years of 2017-
2019 revenue. The global sportswear market is projected to grow from $170.94 billion in
2021 to $267.61 billion in 2028 at a growth rate of 6.6% in the forecast period of 2021-2028.

Figure: Annual Sales Revenue of Adidas from 2000 - 2020

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Sportswear market size by region is high in North America and Europe, Medium in Asia and
Australia and low in Africa and South America. Asia-Pacific is the fastest-growing region in
the global athletic footwear market, owing to countries such as China and India which have a
higher percentage of young population. China, backed by government initiatives to encourage
active participation in sports, is leading the market in the region and has the potential to
surpass the United States as the leading market worldwide in the future.

The key players of the sportswear market are (as of 2020) –

i. Nike ii. Adidas iii. Puma iv. Under Armour v. New Balance vi. Lululemon Athletica vii.
Columbia Sportswear viii. Asics xi. Fila x. Reebok (a subsidiary concern of Adidas)

Among these Brands - Nike, Under Armour, New Balance, Columbia Sportswear are
American sportswear companies. Adidas and Puma are German sportswear companies. Fila
is a South Korean sportswear company. Asics is an Japanese sportswear company.
Lululemon Athletica is an Canadian sportswear company. Reebok was an English sportswear
company which is currently owned by the German Adidas AG group.

3. Marketing Strategy of Adidas:

Purpose

According to Adidas, everything they do is rooted in sport. They say, sport plays an
increasingly important role in more and more people’s lives, on and off the field of play. It is
central to every culture and society and is core to people’s health and happiness.

Purpose of Adidas is, ‘through sport, they have the power to change lives’, guides the way of
their running the company, how they work with their partners, how they create their products,
and how they engage with the consumers. They always strive to expand the limits of human
possibilities, to include and unite people in sport, and to create a more sustainable world.

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Mission

The mission of Adidas is, “To be the best sports brand in the world. Every day, they come to
work to create and sell the best sports products in the world, and to offer the best service and
consumer experience – and to do it all in a sustainable way. They are the best when they are
the credible, inclusive, and sustainable leader in their industry.”

Attitude

At Adidas, they are rebellious optimists driven by action, with a desire to shape a better
future together. They see the world of sport and culture with possibility where others only see
the impossible. ‘Impossible is Nothing’ is not a tagline for them. By being optimistic and
knowing the power of sport, they see endless possibilities to apply this power and push all
people forward with action.

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Strategy

According to Adidas, with sport playing an increasingly important role in more and more
peoples’ lives, both on and off the field of play, they operate in a highly attractive industry.

‘Own the Game’ is their strategy that will guide them through to 2025 – a plan rooted in
sport. Sport is Adidas’ past, present, and future. ‘Own the Game’ puts the consumer at the
heart of everything Adidas do and is brought to life by the people. The strategic focus is on
increasing brand credibility, elevating the experience for the consumer, and pushing the
boundaries in sustainability. The execution of strategy is enabled by a mindset of innovation
across all dimensions of their business as well as digital transformation. Adidas own the
game and will drive significant growth. In 2025, ‘Own the Game’ will not only have
delivered over proportionate growth for Adidas, but also deepened relationships with the
consumer, as they continue to actively live the purpose ‘through sport, they have the power to
change lives’.

To successfully deliver on the five-year strategy, Adidas will support the people to truly own
the game.

In addition to that, the people part of Adidas’ strategy is built on 3 pillars:

 Leadership: Adidas will develop leaders to own the game and act as role models

empowering all people to realize their possibilities. 
 Betterment: Adidas believe in a mindset of continuous learning and
improvement and are committed to providing relevant learning opportunities to upskill
and reskill for the future. 
 Performance: Adidas builds the best teams that play to win,  recognizing
and rewarding both individual and team performances. 

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Strategic Focus Areas of Adidas

i. Credibility

Adidas is a leading brand thanks to their credibility in both sport and culture. To continue to
excite the consumers with innovative concepts that support Adidas mission, they will sharpen
the brand, refine their product offering, and leverage partnerships to further enhance their
credibility with consumers.

 Sport: Adidas focuses on the most important sport categories: Football, Training,
Running, and Outdoor. Football is the biggest sport in terms of viewership, while
Running, Training, and Outdoor are the biggest participation sports. Adidas’ products
in these categories are built for sport and worn for sport.
 Lifestyle: To tap into the biggest commercial opportunity for the brand, Adidas will
sharpen their brand architecture by introducing a new consumer proposition called
Sportswear. These products are born from sport and worn for style. At the same time,
will extend Originals, which is inspired by sport and worn on the street, into the
premium segment through top-quality manufacturing processes and materials.
 Women: Adidas will execute on a cross-category plan to achieve product excellence
and elevate the women’s experience through their membership program to become
their indispensable sports brand.
 Partnerships: Adidas will amplify their credibility through partnerships by
leveraging their power, authenticity, and reach. Adidas will expand their portfolio of
partners, which already includes Beyoncé, Kanye West, Stella McCartney, and
Pharrell Williams, all of whom will continue to play a significant role in wowing the
consumer on the lifestyle side. And will continue to leverage partnerships with the
biggest symbols in sport, be it with teams like Bayern Munich or Real Madrid,
athletes like Lionel Messi or Mikaela Shiffrin, or events like the Boston and Berlin
Marathons.

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ii. Experience

To grow long-term relationships with the consumer, Adidas excite and empower them by
creating personalized experiences in both digital and physical spaces. With this in mind,
Adidas will accelerate the transformation into a direct-to-consumer-led (DTC-led) business
built around membership.

 Membership: With the launch of Adidas membership program in 2018, Adidas laid
the foundation for offering personalized experiences to their most valuable
consumers. They want to take this to the next level with the goal of increasing the
member base to around 500 million by 2025.
 DTC-led: E-Com continues to be Adidas’ most important store. Both adidas.com and
the Adidas app will see enhancements across the entire consumer journey. By 2025,
Adidas e-com business is expected to account for between € 8 billion and € 9 billion
of the company’s net sales.
 Key Cities: Adidas is building on their Key Cities portfolio of London, Los Angeles,
New York, Paris, Shanghai, and Tokyo, by adding Mexico City, Berlin, Moscow,
Dubai, Beijing, and Seoul. These cities offer commercial opportunities as
urbanization continues.
 Strategic Markets: Adidas will double down on Greater China, North America, and
EMEA to bring exciting consumer experiences to life, pursuing a tailored approach
that appeal to local trends. Adidas wants to gain market share in all three strategic
markets.

Sustainability

Adidas commitment to sustainability is truly holistic and deeply embedded into how they
have done business for over two decades. It’s rooted in the purpose that, ‘through sport,
Adidas have the power to change lives’. Adidas wants to move from strong stand-alone
initiatives to a scaled and comprehensive sustainability program.

 What Adidas offer: Adidas keeps pushing the boundaries of sustainable offering, so
that the consumer will be able to choose from a uniquely comprehensive range. By
2025, nine out of ten of Adidas’ articles will be sustainable. How Adidas will do this
revolves around how they expand and innovate 3-loops: made from recycled
materials, made to be remade, or made with natural and renewable materials. Adidas
define products as sustainable when they show environmental benefits versus
conventional products due to the materials used or the respective production
technologies.
 What Adidas do: Adidas are committed to reducing the CO2 footprint of their
product offerings as they work to reach climate neutrality by 2050. Adidas will
achieve this through initiatives such as driving zero-carbon within their own
operations and promoting environmental programs along their entire value chain in
close cooperation with their suppliers.

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  What Adidas say: Adidas will be vocal about the efforts that focus on creating low-
impact products that are made to be remade. To guide the consumer to make more
sustainable choices, Adidas will also simplify labeling strategy and scale up the
product take back program.

Market Segmentation:

Based on the products produced by Adidas, Market segmentation can be seen geographically
as –

i. North America: USA, Canada, Mexico and rest of North American

countries.
ii. Europe: UK, Germany, France, Italy, Russia, Spain and rest of the
European countries.
iii. Asia Pacific: China, Japan, India, Australia and the rest of the countries of
this region.
iv. South America: Argentina, Bolivia, Brazil, Colombia, Chile and rest of the
South American countries.
v. Middle East & Africa: South Africa, Saudi Arabia and rest of the countries
of this region.

Market segmentation can be seen demographically also such as, sex and age, which this
method has long been used in clothing market. They branded products into range of male,
female and kids, according to age and life cycle segmentation and gender segmentation, after
all they can have products that can fit to almost every demographic possible.

Psychographic segmentation can be seen also where the market is divided into groups based
on social class, life style or personality characteristics. Adidas focus on social class because
people within a given social class tend to have similar buying behavior. People interest in
many goods is affected by their life style and many goods they buy are expressions of their
lifestyle, people who loves outdoor activities and sporty style will tends to buy Adidas
products.

Target Market:

The target market for Adidas can be seen as per sports, like –

i. Football
ii. Cricket
iii. Tennis
iv. Baseball
v. Basketball
vi. Gymnastics and many other sports.

The target market for Adidas can also be seen as per end users, like –

i. Men

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 ii. Women
iii. Children

Based on distribution channel Adidas target market are –

i. Specialty stores
ii. Supermarket
iii. Online Shops (e.g. Ali Express, Amazon etc.)
iv. Other Channels (e.g. Franchising etc.)

Competitor Analysis:

i. Nike: Worldwide sportswear sales: $39.1 billion

ii. Adidas: Worldwide sportswear sales: $25.6 billion
iii. Puma: Worldwide sportswear sales: $5.7 billion
iv. Under Armour: Worldwide sportswear sales: $5.2 billion
v. New Balance: Worldwide sportswear sales: $4.1 billion
vi. Lululemon Athletica: Worldwide sportswear sales: $3.4 billion
vii. Columbia Sportswear: Worldwide sportswear sales: $2.9 billion
viii. Asics: Worldwide sportswear sales: $2.7 billion
ix. Fila: Worldwide sportswear sales: $2.6 billion
x. Reebok: Worldwide sportswear sales: $2.0 billion

Product Positioning:

Adidas’ positioning is based on three strategic choices “Speed, Cities, and Open Source”

i. Speed – How they deliver: Deliver customers with fresh and desirable products
where and when they want them.
ii. Cities – Where they deliver: Target cities which are shaping the global trends and
customers’ perception, perspectives and buying decisions.
iii. Open Source – How they create: Collaborate and Innovate – Open the doors of
their brands inviting athletes, consumers, and partners to co-create the future of
the sport and sports culture with us.

Marketing Mix of Adidas products:

The 4Ps of Marketing Mix of Adidas:

 Product: Adidas invests heavily in research and development so as to come up with

new innovations in their sports footwear category. Adidas has also
partnered/collaborated with different celebrities and have launched an exclusive and
limited range of sportswear. E.g. Adidas Yeezy Boost, an exclusive line of sneakers
gained huge popularity among customers, was made in collaboration with popular
singer Kanye West and Adidas. Adidas focuses on design and technology for their
products and produces products which are futuristic and satisfies customer wants and
desires.

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  Price: The brand known for its quality and stylish products focuses on the Upper
Middle class as well as High-end customers has always used the Competitive and
Skimming pricing strategy. For normal product launches, Adidas uses the competitive
pricing strategy keeping in mind the competitors like Nike, Puma, and Reebok. For
new products, which are uniquely designed and technologically advanced as
compared to other competitive brands, Adidas uses Skimming Pricing strategy. High-
Quality products do not come at a low price – This is the psychological factor that
Adidas plays at with its customers.
 Place: Place plays an important role in the Marketing Mix of Adidas. Adidas uses
both Offline and Online channels for the promotion of its products. For Offline
channels, Adidas uses its own dedicated Adidas outlets and Multi-brand outlets for
distributing their products. The company has set up different outlets and partnered
with different multi-brand outlets in different cities of the country to reach out to the
mass audience. For Online channels, Adidas uses e-commerce websites like
Aliexpress.com, Flipkart.com, Amazon.com etc to promote their products. Adidas is
using these channels to sell their new launches in footwear, sportswear etc.
 Promotion: “Impossible is Nothing”- That’s the message that Adidas promotes
through the promotions that the brand does. The advertisements are high energy
adverts that are aimed to bring in adrenaline rush in you and promote the message to
“Go for the Kill” and there is nothing that can stop you from achieving what you want
in life. Adidas uses a proper mix of Online and Offline channels for its promotion.
Online Channels: Adidas has a massive Facebook, Instagram and YouTube
followership and it makes the best use of it for promoting its latest launches and
giving product updates. Offline Channels: Adidas uses Television ads, Events
sponsorships, OOH promotion to its best to reach out to customers. The brand also
has tie-ups with leading sports personalities to promote their products.

4. SWOT Analysis of Adidas:

SWOT analysis is Strength, Weakness, Opportunities and Threat analysis of an organization

or, company. In SWOT analysis, Strength and Weaknesses are the part of internal
environment analysis and Opportunities and Threats are the part of external environment
analysis. So, the internal environment analysis of Adidas group is as follows:

Strengths:

 Brand Value: Adidas is one of the most valuable brands in sports. According to
Forbes, it is a brand value of $6.8 Billion. In 2019, Adidas was ranked the 61st most
valuable brand in the world.
 Legacy & heritage: With decades of heritage & legacy, Adidas has travelled a long
way to establish itself as a youthful brand. The brand was started in 1949 and has
travelled a long way since then.
 An Iconic Brand with a Prestigious Legacy: Adidas has nurtured a strong and
prestigious legacy and heritage over its long, illustrious history by influencing and
shaping numerous aspects of society across the world. For example, the company

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 influenced sports in the 70s and shaped the hip-hop culture in the 80s. Its iconic three-
striped tracksuit and three-leafed motif logo transformed the brand into a cult,
particularly among urban youth.
 New Products Innovation: Since its founding, Adidas has prioritized the quality of
its products over everything else. In 2018, EUR 153 million was invested in R&D
(0.7% of its annual net sales) and EUR152 million in 2019. High-quality, innovative
products are one of the driving forces behind its ever-growing customer base.
 Diversified Portfolio: Even though the Adidas brand is restricted within the
sportswear industry, the company’s products are diversified. It offers multiple
products that are designed to cater to a wide range of sports, including footwear,
apparel, and hardware accessories.
 Young Customers prefer Adidas: The consistent focus on product quality and
customer experience has enabled Adidas to nurture a global and loyal customer base,
particularly teens and young adults between 16 and 24 years in urban areas.
 Effective Supply Chain Management: Supply chain management is vital in the
success of global companies, particularly for Adidas, since it outsources most of its
manufacturing. According to its annual report, Adidas works with key strategic
partners to ensure control of the entire supply chain.
 Strong Financial Position: Financial capability is critical in protecting market share
and long-term profitability and sustainability. Adidas is among the most financially
stable companies globally and utilizes its financial superiority to fend-off competition
from other global companies such as Nike and Puma. In 2018, Adidas’s currency-
neutral revenue grew by 8% to EUR 21.9 Billion, and net income increased by 20% to
EUR 1.7 Billion.
 Strong & Diversified Distribution Network: Adidas has several distribution
networks, including over 2300 company-owned retail stores, over 14,000 mono-
branded franchise stores, and over 150,000 co-branded, retail partners and wholesale
stores. In addition, e-commerce platforms increase sales by providing different
channels to reach target markets and sell directly to the consumers within these
markets.
 Effective Marketing Strategy: The strength of the marketing strategy used by
Adidas stems from its perfectly balanced mix of promotion, advertisements, and the
use of digital technology.
 Sponsorship: Promotion with sponsorship of high-profile athletes such as, Lionel
Messi, David Beckham, Zinedine Zidane, Sachin Tendulkar, Andy Murray, etc.
strengthens brand desire.

Weaknesses:

 Expensive Products: Adidas charges a premium or high prices for its products,
which has alienated low-income consumers. Only upper- and middle-income group
customers can afford over a $100 shoe.
 Supply Chain Shortage: Adidas outsources the production of most of its products to
3rd party or independent manufacturing suppliers, mainly in China, Cambodia, and

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 Vietnam. It has exposed Adidas to the risk of overdependence on foreign suppliers.
According to Reuters, these suppliers are unable to keep up with the growing demand
for medium priced apparel in the North American market, resulting in a reduction in
sales growth by 1-2% in 2019.
 Limited Markets: One problem in Adidas is it is limited to certain countries which is
preventing them to expand their business globally.
 Limited Product Line: Adidas Group has only Adidas brand and Reebok brand
under its portfolio, which has restricted the company within sports footwear, sports
apparel, and accessories. Therefore, a decline in demand for sports-related products
can be disastrous to Adidas.
 High Price: The products of Adidas are highly priced in terms of their competitors
like Nike, Puma, Under Armour etc.
 Brand Image: Although Adidas has an iconic brand image with history, in current
days the image is not successful as of the other brands like – Nike, ESPN etc.
 Links to Forced Labor: Adidas was among 83 multinationals that were linked to
forced labor in factories across China by ASPI. Any association with forced labor not
only exposes the company to legal risks but also erodes trust among consumers.

And the external environment analysis of Adidas group is as follows:

Opportunities:

 Retail Store Marketing: Adidas can market their products to the high end retail
stores all over the world to increase their sales volume.
 Improved Products: Adidas can improve their product quality, design to impress and
attract the customers.
 E-commerce: In recent years, the number of consumers who shop online or use e-
commerce sites has increased significantly. Adidas incorporated Instagram’s checkout
feature into its distribution network, leading to a 40% increase in online sales in the
1st Quarter of 2019, which implies that it can replicate this success in other social
media platforms such as Facebook and Snapchat.
 Growing Sportswear Industry: Sports and fitness have grown in popularity with no
sign of slowing down soon, which means there will be a consistent increase in
demand for sportswear products and assortments.
 Meeting Customer requirements: Adidas can work on the know the customers need
from them, what they want from Adidas like in terms of the designs of their new
product, quality, materials. And from these Adidas can produce their new products
accordingly to satisfy the customers.
 Investing in Smart Materials: Technological advancements have enabled the
development of new synthetic materials that are better and more beneficial than
traditional materials. Continual and increased investment in technological
development and the manufacture of new materials can provide Adidas with an edge
over its competitors. Adidas announced that it will expand the product lines using
newly launched fabrics made from recycled marine plastic and polyester.

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  Increasing Demand for Premium Sports Products: Improved economic situation in
developing countries has increased purchasing power and demand for premium
products. Adidas can capitalize on this by expanding into countries such as India,
where discretionary income is expected to increase by 45% by 2025.
 Diversification into sporting equipments: Even though Adidas has a diversified
portfolio, there is still room for expansion of its product line. For example, Adidas can
differentiate itself from Puma and Nike by expanding its product line to include
sporting goods such as tennis rackets, golf clubs, hockey sticks, and so on.
 Global Expansion: The rapid growth of emerging markets in Africa, Asia, and South
America provides Adidas with lucrative opportunities for expansion. For example,
Adidas has about 12,000 stores in China, and in 2019, they plan to open additional
1000 new stores.
 Product Development in Space: In 2019, Adidas has partnered with International
Space Station National Lab to explore new product development “Boost midsole
creation” process without gravity.

Threats:

 Competition: The main threat facing Adidas is increased competition due to

globalization and technological advancements, which has enabled entry and
penetration of small and medium companies. This implies that Adidas has to compete
against main rivals such as Nike, Under Armour, Puma while fending-off new
entrants and penetrators.
 Rapid Expansion and Adoption of E-commerce: Companies are adopting the
rapidly expanding e-commerce at an alarming rate, which can pose a threat to Adidas
if its main competitors such as Nike and Puma adopt e-commerce before them.
 Government Regulations: Adidas is facing government rules and regulation of fair
trade. Government of different countries are using fair trade methods for the market
which is hurting Adidas sales.
 Supplier Dominancy: The fact that Adidas outsources most of the manufacturing of
its products implies that the suppliers have more bargaining power than the company.
The skewed balance of power exposes Adidas to the possibility of being held hostage
by its biggest suppliers.
 Loss of Trademark: In 2019, Adidas lost the three-strip logo trademark case in the
General Court of the European Union, which exposes the brand to the threat of
imitation.
 Technological Advancements: The threat posed by competitor’s increases as they
become more technologically advanced. This implies that a competitor such as Nike
will pose a greater threat if they become technologically advanced than Adidas.
 Exchange Rates Fluctuation: Fluctuations of major currencies such as the Euro and
the US Dollar can negatively affect Adidas’ profits since it operates in the global
marketplace.
 Global Economic Uncertainty: The effects of economic slowdowns, such as lower
sales, negatively affect Adidas, just like any other company. In Q1 of 2020, its net

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 income dropped by more than 90% due to recent events. Adidas could lose up to $1
billion if economic uncertainties persist

5. Conclusion:

Adidas is a German multinational corporation 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. The purpose of Adidas is, ‘through sport, they have the power to
change lives’. The mission of Adidas is, “To be the best sports brand in the world. Every day,
they come to work to create and sell the best sports products in the world, and to offer the
best service and consumer experience – and to do it all in a sustainable way. They are the best
when they are the credible, inclusive, and sustainable leader in their industry.” According to
Adidas, ‘Own the Game’ is their strategy that will guide them through to 2025 – a plan rooted
in sport. It is a 5 year strategy for which Adidas will support the people to truly own the
game. Supporting people of Adidas’ strategy is built on 3 pillars: i. Leadership ii. Betterment
iii. Performance. Strategic focus area of Adidas are Credibility, Sustainability and
Experience. From market segmentation and target market section this assignment we can see
that Adidas has a very good marketing division. Their product positioning is also good in
terms of sales. From the competitor analysis section we can see that Adidas is only behind
Nike in terms of current market share and revenue. The remaining competitors are far behind
Adidas. The marketing mix section indicates the different products of Adidas, pricing
method, place of marketing and also the promotional strategies of Adidas. Lastly, the SWOT
analysis gives us the view of development points for Adidas. Considering the strengths from
SWOT analysis, we can say that Adidas should focus on product development as they have a
strong financial standing and try to increase their sales using their strong distribution network
and marketing strategies. From the weaknesses point, it can be said that Adidas should try to
solve their production materials supply related issues, expand their market and product lines
for the new generation of people, try to check their product price to meet the customers need.
From opportunities point of view, Adidas should start retail store marketing, improve their
products, and start in e-commerce business, with the growing sportswear industry they should
try to meet customer requirements, Invest in smart materials, with the increasing demand for
premium sports products they should diversify sporting equipments, try for global expansion.
Also product development in space will increase their brand image so, they should not miss
the opportunity before any other company seizes it. Finally, to overcome the threats, Adidas
should seek more and more suppliers for the supplier dominance issue. Seek exchange rate
fluctuation problem solutions like forward and future contract. Adidas should adopt advanced
technology for their production to avoid threats from other manufacturers. They should
expand their market and develop e-commerce related marketing strategies.

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6. References:

1) https://www.adidas-group.com/en/about/
2) https://www.alltopeverything.com/top-10-sportswear-brands/
3) https://www.mordorintelligence.com/industry-reports/global-sports-apparel-market-
industry
4) https://www.fortunebusinessinsights.com/sportswear-market-102571
5) https://heartofcodes.com/positioning-of-adidas/
6) https://findanyanswer.com/what-is-adidas-positioning-strategy
7) https://heartofcodes.com/marketing-mix-of-adidas/
8) https://biznewske.com/swot-analysis-of-adidas/

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