INTERNATIONAL MARKETING

ADIDAS

NAME :- KOMAL A. KHADSE

DIV. :- A
ROLL NO. :- MB21028
SUBJECT :- INTERNATIONAL MARKETING
Introduction:

● Adidasis a multinational firm which was founded in 1948.

The firs specialized in designing and manufacturing of sports clothing and accessories.
The company is base in Herzogenaurach, Bavaria, Germany.
Adidas AG group consist of the Reebok sportswear company, TaylorMade-
Adidas golf company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich.

● The company also produces bags, shirts, watches, eyewear, and other sports- and clothing-related goods. It is considered
Number one manufacturer of sportswear in both Germany and Europe.
● The company was founded by Adolf Dessler who used the his nickname Adi and
the first initials of his last name . Adidas’ revenue for the year of 2012 is €14.48 billion.

● The purpose of this project is to evaluate the company’s marketing strategy

through conducted sever analysis ( PEST , SWOT, Porter’s five forces , marketing mix analysis, value chain analysis and
competitor analysis ) and based on the findings provide recommendation for the company.
Overview :-

● About Adidas – short history

● Adidas shoes - Get a perfect & smart look
● Stylish Adidas casual Shoes - Feel the Pride
● Adidas Sports Shoes - Impossible is nothing
● Adidas originals – Long Live Originality
● Adidas originals Shoes - Look Original and Fresh!
● Popular Adidas Collections
● Quick Glimpse of Adidas Ads
About Adidas – short history :-

● Adidas was founded in 1949 by Adolf Dassler.

● Adidas has a clear mission that the brand strive to be the global leading and most popular sporting goods brand.
● Adidas is the largest sportswear manufacturer in Europe and the second biggest in the world.
● Adidas is believed to engender high consumer brand loyalty.
● "Adidas is all in" is the current global marketing strategy for Adidas. The slogan aims to tie all brands and labels
together, presenting a unified image to consumers interested in sports, fashion, street, music and pop culture.
Adidas shoes - Get a perfect & smart look :-

● Adidas shoes are indeed top quality footwear you’ll come across time and again.
● Give your active lifestyle the boost it needs with Adidas shoes.
● Explore our range of Adidas shoes, and upgrade your style in no time.
● Choose Adidas shoes and make your workout fun and stylish!

● Look through it for more

collections
http://www.myntra.com/adidas-s
hoes
Three Stripes Business Model of Adidas :-

● One brand that dominates the mindshare while consumers think of Hip Hop and
sporty brands is Adidas. So much so that Adidas is now one of the most desirable
sportswear brands. Adidas produces various sports equipment across different types
of sports. But then the question is what is the business model of Adidas that is helping
the brand rule the sportswear industry across all the sports (obviously next to Nike).

● As of 2020, Adidas had a turnover of €19.844 billion and has approximately 62,285
employees worldwide. From establishing itself as one of the best sportswear, it has also
been working towards establishing itself as one of the best CSR companies globally (as of
2020).
Currently, Adidas has products in the following category :-
● In July 1924, the business was 1. FOOTWEAR
established as “Dassler Brothers 2. APPAREL
Shoe Factory” (Gebrüder Dassler
3. ACCESSORIES & GEAR
Schuhfabrik), which was later
joined by his elder brother. It was
only in 1936 that the brand found
true success when Adi gifted shoes
to the gold medallist Jesse Owen
an American track-and-field star,
who also made a world record in
the 1936 Berlin Olympics. The
business became quite successful
and was selling 200,000 shoes each
year until WWII hit.

● After WWII in 1947, the brothers

had a clash and they split. Rudolf
formed another shoe company
known as Puma, which is now
considered one of the strongest
rivals of Adidas.
Fun Fact:
● The complete form of Adidas is ‘All Day I Dream About Sports.’ Initially, in 1949 the logo was a spiked shoe hanging in
between the letter ‘d ’

● Adidas logo developed its famous three strips from the original founder Karhu Sports, who was short
on capital post-WWII. The owners decided to sell the trademark of their logo for €1,600 and two
bottles of whiskey. As per Economic Times, The three-stripes of the Adidas logo represent a mountain,
pointing out challenges and goals people need to overcome.

● It was only in 1971 that the brand unveiled the

three-stripe Adidas logo in the form of a leaf called the
“trefoil.” This version was later replaced in 1990 by the
current logo, shaped like a triangle for the Equipment
Line but later became the corporate logo, though the
trefoil logo can still be found on some Adidas original
products.
Adidas Business Model is based on integrating hip hop culture and sports :-
● In 1970 the brand delivered its football for the 1970 World Fifa Cup and designed the ball in such a way that it would
increase the visibility on the black and white screen, and this soon led to one of the most successful and famous
partnerships of Adidas providing footballs to Fifa World Cup after that.
● In 1986, the brand expanded and entered the hip-hop culture and soon became a household name and a lifestyle. Unknown
to Adidas, the hip hop group Run DMC wrote a song about their shoes, “My Adidas,” and held up the 3-Stripes shoes during
the concert in front of 40,000 fans – amongst which was an Adidas employee, and it led to an unexpected partnership.

● LINK :- https://youtu.be/JNua1lFDuDI
Adidas Marketing Strategy :-
One of the most famous taglines of Adidas is ‘Impossible is Nothing,’ which focuses on the importance of fitness and the
importance of striving for something that a person truly desires and is also one of the primary marketing strategies for the
company.
● Furthermore, it has also sponsored many world sports events such as FIFA, UEFA, NBA, Cricket & Olympics. At the
same time, it is also known to provide the best products which are comfortable, long-lasting, and beyond the
ordinary.
● Moreover, it also takes advantage of 6 major cities, which helps shape the trend and the buying decisions of the
targeted customers. These cities are Los Angeles, London, Shanghai, New York, Tokyo, and Paris. In the UK, it
primarily focuses on selling soccer products, whereas it focuses on basketball and baseball in the US. Adidas ensures
that the marketing strategy meets the needs of consumers globally.

● The collaboration of Adidas with various athletes and significant-tech companies has allowed it to enhance
innovation with branding and marketing. This has led to the development of a more vital relationship with the
customers ensuring customer loyalty. It also collaborates with celebrities which includes music and fashion
icons. Thus, the strategy is to build must-have designs that reach out to more than just sports fanatics.
● This can be seen when Adidas created Yeezy with Kanya West. It turned out to be one of the fastest-growing
footwear lines and, in 2021, was valued between $3.2-$4.7 bn. This has allowed it to expand the customer
base and reach out to those customers who are not sports fans.
Adidas’ powerful distribution network :-
● Another competitive advantage that Adidas has is its distribution channel.
Globally it has around 2500 stores. The global supply chain of Adidas
extends to various tiers from manufacturing partners to raw materials such
as cotton, leather, and natural rubber and the use of technology.
● The majority of the products are produced by 132 manufacturing partners
worldwide. At the end of 2020, 61% of the strategic suppliers had worked for
more than ten years, and 30% worked for more than 20 years.

● As of 2020, it outsources most production and has 500 independent factories globally that manufacture products in more
than 49 countries. Its supply chain has different types of business partners and also has multiple layers. As of 2020, the
top 4 countries in terms of sourcing volumes were:
1. Vietnam
2. Indonesia
3. China
4. Cambodia
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