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MM Project Adidas

Adidas, founded by Adolf Dassler in 1949, is a leading global sportswear brand known for its innovative athletic footwear and apparel. The company targets a diverse demographic, primarily focusing on younger consumers aged 20-29, and emphasizes quality, style, and sustainability in its product offerings. Adidas employs competitive and skimming pricing strategies while maintaining a commitment to corporate social responsibility and environmental initiatives aimed at achieving net-zero emissions by 2050.

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0% found this document useful (0 votes)
41 views33 pages

MM Project Adidas

Adidas, founded by Adolf Dassler in 1949, is a leading global sportswear brand known for its innovative athletic footwear and apparel. The company targets a diverse demographic, primarily focusing on younger consumers aged 20-29, and emphasizes quality, style, and sustainability in its product offerings. Adidas employs competitive and skimming pricing strategies while maintaining a commitment to corporate social responsibility and environmental initiatives aimed at achieving net-zero emissions by 2050.

Uploaded by

dhruvvadukul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ABOUT Services Portfolio Contact Testimonials

A D I D A S

01 11
INTRODUCTION OF BRAND ADIDAS
Adidas, a global powerhouse in sportswear and
lifestyle fashion, traces its origins to the vision of
Adolf "Adi" Dassler, who founded the company in
1949 in Herzogenaurach, Germany. Emerging
from a family split with his brother Rudolf
(founder of Puma), Adi focused on creating high-
performance athletic footwear, driven by his
passion for enhancing athletes' capabilities.
Today, Adidas stands as Europe's largest
sportswear manufacturer and the world’s
02 11
second-largest, rivaled only by Nike
ADIDAS TARGET MARKET ANALYSIS
1. DEMOGRAPHIC
Age: SEGMENTATION
The largest target market for Adidas demographics is aged between 20 and 29,
Adidas primarily targets a younger audience, including active and fashion-conscious
millennials and Gen Z. These consumers are drawn to athleisure styles that blend
functionality with trendiness, allowing them to seamlessly transition between workout and
casual environments.
Gender:
Adidas caters to a broad range of consumers across gender lines, with distinct product
lines for men and women, as well as unisex options. This inclusive approach ensures that
Adidas appeals to various preferences and styles, enhancing its relevance in a diverse
market.
The Adidas target audience
has traditionally skewed
more towards males.
However, in recent years,
Adidas has stepped up its
marketing for the Female
Target Market.
An example is the award
winning “Liquid Billboard”
campaign, encouraging
women to feel confident
while swimming in public.
INCOME
: generally targets consumers in the middle- to higher-income brackets who value quality
Adidas
and are willing to invest in premium sportswear. This group appreciates the durability and
design of Adidas products, making the brand a go-to for those who prioritize performance and
style.
EDUCATION
:
Adidas’ audience often includes students, young professionals, and urban residents who align
with its commitment to innovation and sustainability. This educated and digitally engaged
demographic is responsive to Adidas’ brand values, which center on forward-thinking design
and environmental responsibility.
ADIDAS TARGET MARKET ANALYSIS
2. ADIDAS GEOGRAPHIC SEGMENTATION • Asia -Pacific
10%

Latin America
The Adidas target audience is located internationally, and
7%
• EMEA
the company has a market presence in over 160
37%
countries. In 2021, Adidas operated 2184 retail store
world wide.
• Greater China
22%
The proportion of Adidas net sales is highest in Europe,
• North
the Middle East and Africa (37%), followed by North America
America with 24% and Greater China at 22%. Smaller 24%

markets cover Asia-Pacific and Latin America.


ADIDAS TARGET MARKET ANALYSIS
3. ADIDAS BEHAVIORAL SEGMENTATION
The target market for Adidas is typically sports enthusiasts, amateur athletes and
professional athletes, who train or participate in sports on a regular basis. The brand also
appeals to those who view sport and fitness as part of their lifestyle and self-image.
Adidas customers are fashion and style conscious, and enjoy popular culture, evident in
the company’s frequent collaboration with celebrities, fashion designers and pop culture
icons.
ADIDAS TARGET MARKET ANALYSIS
4. ADIDAS PSYCHOGRAPHIC
SEGMENTATION
Adidas consumer is active, adventurous and aspirational, integrating sport and fitness into
their identity.
They value authenticity, style, and innovation – they want high performance and cool design.
Many follow sports culture and pop culture alike (Adidas appeals via celebrity and designer
collaborations).
Notably, around 70% of Adidas shoppers say sustainability influences their purchases so
eco-conscious values are important.
POSITIONING STRATEGY ADOPTED BY
ADIDAS
Positioning is the art of creating a distinct place in the consumer's mind for the
brand, and Adidas has mastered this art. Its positioning strategy focuses on two
main elements: quality products and a blend of style with functionality. Let's
dissect this:
Quality and Technological Innovation:

Adidas has positioned itself as a purveyor of quality sports gear. Their products
are designed using cutting-edge technology that promises durability and superior
performance. For example, the Boost technology in their shoes provides optimum
energy return with every stride, providing athletes with increased speed and
performance.
The continuous introduction of such innovative technologies affirms Adidas's
commitment to quality, setting a high benchmark in the sports apparel industry.
POSITIONING STRATEGY ADOPTED BY
ADIDAS
Versatility: All Sports Under One Roof
Adidas has established itself as an all-encompassing sports brand offering products catering
to a plethora of sports. Be it football, basketball, tennis, running or even golf; Adidas offers
specialized gear for all, hence positioning itself as a one-stop destination for sports-related
products. This versatility appeals to a wide range of sports enthusiasts, reinforcing their
positioning strategy.
Style and Aesthetic Appeal:
Positioning isn't merely about functionality; aesthetic appeal also plays a crucial role, and
Adidas comprehends this well. They seamlessly blend style with functionality, creating
products that aren’t just performance-driven but also fashion-forward. The Adidas Originals
line serves as the perfect testament to this. This strategy appeals to the younger
demographic that seeks both comfort and style in their sportswear.
Points of Parity (POPs)

A point of parity is any area where your business is the same as your competitors to be a buying consideration for your customers

• Performance-focused product portfolio:


Like Nike, Puma and Under Armour,
Adidas offers a full range of athletic
footwear, apparel and equipment
designed for performance. As Adidas
itself notes, it “spans footwear, apparel,
equipment and services…from elite
professional athletes and teams to any
individual who wants to make sport part
of their lives”
Points of Parity (POPs)

• Global marketing and endorsements: Adidas, Nike, Puma and Under Armour all sponsor major
teams, athletes and events worldwide. All leverage star athletes and large sporting events (e.g.
World Cups, Olympics, NFL) to build brand equity. Adidas is, for instance, an Olympic sponsor
and long-time FIFA/UEFA partner, just as Nike has historic basketball and NFL tie-ins. Likewise,
each brand has celebrity collaborations (e.g. Adidas had Kanye West’s Yeezy, Nike has Jordan
Brand and Off-White, Puma has Rihanna/Usher collaborations).
• Product Quality: like its competitors ADIDAS offer high-quality products that are durable and
perform well for athletes and fitness enthusiasts.

• Competitive Pricing: ADIDAS products priced competitively, offering affordable options while
maintaining premium products for customers who are willing to pay more for superior quality or
exclusive designs.
Points of Differentiation (PODs)

POD, refers to the unique attributes or features that set a brand apart from its competitors. These are the
distinctive qualities or benefits that make a brand stand out in consumers' minds, and they help create a
competitive advantage.
• Heritage and Iconic Branding: Adidas has a
unique heritage and its “Three Stripes” logo is
globally recognized. Adidas even uses an
empowering tagline “Impossible is Nothing” that
emphasizes overcoming limits, reflecting a long
history in sport. As the company proclaims, it
strives “to be the best sports brand in the world,
by designing, building and selling the best sports
products…in a sustainable way This mission and
heritage convey authenticity that is particular to
Adidas.
Points of Differentiation (PODs)

• Retro & Streetwear • High-Profile Collaborations:


Leadership:
High-profile partnerships
(Yeezy by Kanye West,

Iconic sneakers like Pharrell Williams lines, Stella


McCartney womenswear, Y-3
Samba, Gazelle, designer wear) give Adidas a
Campus booming in fashion-forward edge. These
designer/alliance lines tie
global fashion.
Adidas to pop culture and
reach consumers beyond
pure sport.
Points of Differentiation (PODs)

• Open Innovation & Technology:


Adidas marketing has always placed a strong emphasis on
technology and innovation. In 1984, Adidas added the
Micropacer to its sneaker, the first tracking device to provide
performance data for athletes. This approach continues till
today, with the development of Futurecraft 4D STRUNG.
Futurecraft 4D is an innovative technology that uses athlete data,
3D printing and robotics to create the optimal personalized shoe
to enhance the individual’s sports performance.
Adidas has developed a new technology - Strung - the first
textile technology that transforms athlete data into dynamic
performance material. The company says it wants this to be
the most data-informed textile, based on foot anatomy and
athlete movement..
ADIDAS
EVALUATING
PODS
Desirable: Adidas’ PODs align with target values. Young urban athletes care about performance
and style (delivered by tech and fashion collabs) and are increasingly eco-conscious. Its
messaging of empowerment (“Impossible is Nothing”) and inclusivity (female swim billboard)
resonate emotionally.
Deliverable: Adidas can back these claims. Its R&D capabilities (partnership with Carbon, Parley,
MIT) ensure innovative products actually reach market. The 99% recycled polyester
achievement proves its promise on sustainability Its heritage gives it credibility to sell fashion-
forward sportswear.
Differentiating: Many PODs are truly unique. Few rivals match Adidas’ blend of lifestyle fashion
and environmental initiatives. For example, sending soccer balls to space or creating fully
recyclable sneakers are moves Nike and others haven’t replicated. The combination of German-
engineering reputation + trendy collaborations + planet-friendly materials creates a distinct
profile in consumers’ minds.
About SHOES Portfolio Contact Testimonials

FULLY
RECYCLABLE
SNEAKERS
Sportswear giant Adidas has
launched a fully recyclable
sustainable running shoe as part
of its ‘Made to be Remade’
project.
PRODUCT STRATEGY OF ADIDAS
Adidas Superstar – These took the basketball industry by storm in
1969. From traction to impact protection and durability, these
shoes had everything a player needed to play their best game.
They also work great as a casual sneaker for both men and
women.

Adidas Stan Smith – For many tennis players around the world,
this is a must-have pair of shoes. It features a minimalist design
that is extremely appealing and does not distract from the game. It
is also superbly functional and very comfortable to wear..
PRODUCT STRATEGY OF ADIDAS
Adidas Samba – Originally designed for soccer players, the Samba
got the attention of a type of soccer fans and, for some reason,
took to wearing these affluent-looking shoes to games. Its unique
look with the black leather and gum outsole added a lot to its
appeal and has since become one of the most popular Adidas
shoes of all time.

Adidas Ultra Boost – Considered by many to be the ideal running


shoe, the Ultra Boost series provides unparalleled comfort while
running even the toughest terrains. The innovative cushioning
does boost your energy and keeps you going with your workout far
longer than you think you can.
PRICE STRATEGY OF ADIDAS

Adidas has always utilized either of two strategies when it comes to pricing – the
competitive pricing strategy and the skimming pricing strategy. The competitive pricing
comes into play with its regular products, taking into account the prices of rival companies
like Nike and Puma. The skimming pricing strategy is used whenever Adidas launches a
cutting-edge product that is more advanced than what competitors offer.

• Competitive pricing strategy

A competitive pricing strategy involves setting product or service prices in relation


to what competitors are charging.
• Skimming pricing strategy

Price skimming is a pricing strategy where a business initially sets a high price for
a new product and then gradually lowers it over time.
PRICE STRATEGY OF ADIDAS

Model MSRP (USD) MSRP (INR)

Superstar II $100 ₹8,566

Stan Smith $100 ₹8,566

Samba OG $100 ₹8,566

Ultraboost 5X $180 ₹15,419


• Core Benefit: At the center, the core benefit of Adidas shoes is
represented, such as "Performance," "Comfort," and "Style."

• Basic Product: The next layer illustrates the basic product, including
essential components like the "Sole," "Upper," and "Laces."

• Expected Product: This level shows what customers expect, such as


"Durability," "Support," and "Cushioning."

• Augmented Product: Here, we see the added value, like "Brand Image,"
"Technology (e.g., Boost)," and "Design."

• Potential Product: The outermost layer represents future possibilities,


PRODUCT LINE OF ADIDAS
Line Description Key Sub‑categories

Running: Ultraboost, Adizero


Shoes for sport and lifestyle, • Football: Predator, X, Copa
engineered for activities from running • Basketball: Harden, Dame series
Footwear Line
to trail, plus casual slides and • Training: Adipower, Pureboost

sport‑specific models • Outdoor: Terrex


• Slides: Adilette, Adissage

Performance‑driven and • T‑Shirts & Tanks (AEROREADY tops)


• Hoodies & Crewnecks (Trefoil fleece)
heritage‑inspired clothing across
Apparel Line • Track Pants & Suits (three‑stripe warm‑ups)
tops, bottoms, outerwear, and • Jackets & Outerwear
sport‑specific kits • Leggings & Tights

verything that’s essential, nothing • EQT Footwear: Takumi Sen, Agravic, Support 93
that’s not” — minimalist, • EQT Apparel: Track tops, tees, hoodies
Equipment Line
performance‑first sub‑brand born in • EQT Accessories: Gym bags, caps, technical
PRODUCT LENGTH OF ADIDAS
Product Length refers to the total number of products in a company’s product line. It counts
the total items within a specific line, not to be confused with the number of product lines a
company has.
So, for ADIDAS’s Footwear Line, the product length is the number of different shoes Adidas
offers similarly for different product it have different varity. Within this line, there could be
different variations of shoes across different styles, colors, and sizes.
For
•example:
Football: Predator, X, Copa
• Basketball: Harden, Dame series
• Training: Adipower, Pureboost
• Outdoor: Terrex
• Slides: Adilette, Adissage
ADIDAS CSR ACTIVITIES

"Just keep moving forward."


01
Adidas has embedded CSR at the core of its corporate strategy through a 2025
roadmap emphasizing sustainability, social impact, and ethical governance. Its
environmental initiatives focus on decarbonization—targeting net‐zero by
2050—and circularity, with a goal of 90% “sustainable” products by 2025 and
utilizing recycled materials such as Parley Ocean Plastic in Primeblue and
Primegreen products.
Environmental Initiatives
• Decarbonization
Adidas aims to reduce Scope 1 and 2 emissions by
70% and Scope 3 emissions by 43% by 2030, with
02
interim targets of a 9% carbon intensity reduction in
2025. In 2024, the company achieved a 17%
reduction in Scope 1 and 2 emissions and a 20%
reduction in Scope 3 emissions relative to 2022
baselines
Powering up on Renewables: (67% reduction)

03
Adidas’s “Powering up on Renewables” initiative is the
cornerstone of its near‑term Science‑Based Targets
for Scope 1 & 2 emissions, accounting for 67% of the
70% reduction goal by 2030. By dramatically scaling
renewable electricity through a mix of on‑site solar
photovoltaic (PV) installations and both physical and
virtual Power Purchase Agreements (PPAs/VPPAs),
the company has laid out a clear roadmap across key
markets—Germany, China, Europe and North
America—to decarbonize its own operations and drive
systemic change in the energy sector
Circularity and Materials Innovation

Through partnerships with Parley for the Oceans, Adidas has


introduced Primeblue (50% Parley Ocean Plastic) and Primegreen
(≥40% recycled content) technologies, embedding recycled ocean
plastic into premium products since 2015. By 2020, over 60% of all
products incorporated sustainable materials, moving the brand
toward eliminating virgin polyester by 2024
Community Engagement Its Us VS Plastic Waste

Adidas’s “Run for the Oceans” campaign


leverages global running communities to raise
awareness and funds for Parley’s youth
education programs on marine conservation.
The company also supports local sports
programs and invests in grassroots
development via Adidas Sports Academies.

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