Analysis of the global brand Adidas

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An analysis of the global sportswear and gear manufacturer Adidas

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  • To keep up with the competition, Adidas generates close to 60 new foot-friendly designs each year.
  • direct business relationships with 1,232 suppliers in 63 countries Adidas holds relationships with 269 licensee factories in 45 countries.
  • direct business relationships with 1,232 suppliers in 63 countries Adidas holds relationships with 269 licensee factories in 45 countries.
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  • Analysis of the global brand Adidas

    1. 1. Impossible is Nothing
    2. 2. Analysis of the global brand Adidas
    3. 3. The objective of the Presentation  To identify a global brand and critically analyze it with contrast to the related theories and frameworks
    4. 4. The structure of the Presentation  Introduction to the brand  Situational Analysis  STP Strategy used by Adidas  International Marketing mix  Global issues  Recommendations
    5. 5. Introduction to the brand  Adidas is the biggest sportswear manufacturer in Europe and one of the biggest in the world.  Owns a global market share of 35%  The company that started in 1924 is one of the favorites for many athletes.  Adidas has also won the trust of many customers as a strong and reliable brand.  Their core products are Footwear, Clothing, and Accessories
    6. 6. History of the brand  Adidas began when Adolf Dassler began making shoes in his mothers wash kitchen in Germany in 1924  The first name for Adidas was Gebrüder Dassler Schuhfabrik (Dassler brother shoe factory)  ‘Adi Dassler adidas Sportschuhfabrik’ was registered on 18th August 1949 and set to work with 47 employees in the small town of Herzogenaurach.
    7. 7. Vision and Mission  Vision “To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology"  Mission The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position. We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders. We are dedicated to consistently delivering outstanding financial results.
    8. 8. Vision and Mission  Vision “To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology"  Mission The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position. We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders. We are dedicated to consistently delivering outstanding financial results.
    9. 9. Corporate Mission  Strives to be the leader in sports gear and apparel  Improving operations  Core Values  Performance  Passion  Integrity  Diversity
    10. 10. Situational Analysis
    11. 11. Situational Analysis  PESTEL Analysis  SWOT Analysis  Level of Internationalization  Market demand  Porter’s five forces
    12. 12. PESTEL Analysis  POLITICAL   ECONOMICAL   Using quality information systems and R&D in sportswear ENVIRONMENTAL   Targeting mainly the European countries TECHNOLOGICAL   The outsourcing done to Asian countries SOCIAL   Issues such as their employees’ health and safety matters such as animal rights LEGAL  Adhering to the advertising standards and the sales and supply act  Labor laws
    13. 13. SWOT Analysis  STRENGTHS  Long heritage and big brand value  Supplier for major sports events  Diversified product range  Strong and innovative marketing  Has a workforce of over 45,000 employees
    14. 14. SWOT Analysis  WEAKNESSES  The products costly due to innovative technology or production method  Stiff competition and similar big brands means customers have high brand switching
    15. 15. SWOT Analysis  OPPURTUNITIES  Adidas generates close to 60 new foot-friendly designs each year.  The company can venture into making more stylish designs and cuts  Tie-up with emerging sports teams/clubs/players internationally  Brand building by setting up sports academies
    16. 16. SWOT Analysis  THREATS  Other brands offer more styles and varieties, thus more competition  Threat from other competitive brand who produce sports equipment and accessories at a lesser cost  Pirated/fake imitations affect brand image
    17. 17. Level of Internationalization
    18. 18. Market Demands  Global market share of 35%  Product line is widely ranged
    19. 19. Porter’s 5 forces  DEGREE OF RIVALRY   The rivalry among existing competitors is pretty high in the sports and footwear industry as compared to other similar industries. THREAT OF SUBSTITUTES  The substitutes of Adidas products such as NIKE, PUMA etc.  Switching cost is low there is a higher tendency to lose its customers.
    20. 20. Porter’s 5 forces  BARGAINING POWER OF BUYERS   BARGAINING POWER OF SUPPLIERS   Bargaining power of Buyers of Adidas products tends to be high. One of the reasons for this is that the buyers’ concentration is high, that means they buy large volumes. The suppliers for the Adidas products are available in plenty and so the bargaining powers of suppliers are low. BARRIERS TO ENTRY  But such an established brand like ADIDAS will not be affected much. The entry barriers to the sportswear market are comparatively high.
    21. 21. STP Strategy
    22. 22. STP Strategy  SEGMENTATION  Young men, women and children who have passion for fitness and sports
    23. 23. STP Strategy  TARGETING  Mostly youth between ages 13 – 30  The consumer is from upper middle and upper class  The consumer is working & love sports  The Consumer is fashionable and stylish
    24. 24. STP Strategy  POSITIONING  The shoes are comfortable as compared to any other in the segment  The apparels are stylish & designed to suit the consumer need  The eye gear and the perfumes are serving the niche segment
    25. 25. International Marketing mix
    26. 26. Products  Caters for different needs and wants of consumer – (e.g.: Sportswear and fashionable items.)  Uphold its brand by constantly upgrading and improving products’ innovative features and quality to satisfy its customers.  Adidas has established itself as a strong brand for sports apparels.
    27. 27. Price  Adidas is a shopping product.  Able to penetrate the market as it is cheaper than its competitors, which is penetration strategy.  Uses market skimming for some of the other products offered in the product mix (e.g.: white T-mac 4 shoes is being charged at a higher price than the other color of the same version).
    28. 28. Place  Distributing some of the Adidas products to the various sporting outlets  Adidas outlets all over the world.  Online purchasing through the internet.
    29. 29. Promotion  Promotion objective: Become the NO.1 sporting brand in the world  PROMOTION MIX  Advertising commonly through the mass media.  Through the use of the internet.  Point of Sale.  ‘Impossible is Nothing’ campaign by using various celebrities and sports personnel as brand ambassadors
    30. 30. Global issues faced by Adidas
    31. 31.  Europe  Slow Growth -Due to rising costs of resources  China  Big Boom -Due to increasing popularity of sports  Criticized and allegations of sweatshop labor usage  Criticized for productions done from animal skin
    32. 32. Recommendations
    33. 33.  Short Term    Identify market dynamics and change accordingly Keep up with endorsements and Sponsorships Long Term  Increase R & D  Advance further in Technologies  Keep supporting diversity  Target more into women’s wear
    34. 34. Thank you

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