ADIDAS - MARKETING PLAN

MARKETING STRATEGY
People purchase products or services for three basic reasons:

✔ To satisfy basic needs.

✔ To solve problems.
✔ To make themselves feel good.

MISSION STATEMENT

MISSION OF THE COMPANY

The adidas Group strives to be the global leader in the sporting goods industry
with sports brands built on a passion for sports and a sporting lifestyle.

➢ 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 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 a global organization » that is socially and environmentally
responsible, creative and financially rewarding for our employees and
shareholders.
➢ We are committed » to continuously strengthening our brands and
products to improve our competitive position.
➢ We are dedicated » to consistently delivering outstanding financial
results.

MISSION OF THE MARKETING PLAN

To devise a marketing plan and formulate strategies which would help in the
achievement of the marketing objectives of the company which are,
➢ Market penetration – gaining market share across all markets in which we
compete
➢ Market development – expanding into new markets and addressing new
consumer segments
 ➢ Awareness - increasing awareness and visibility across all brands,
providing clear and consistent messaging and supporting product
initiatives at the point-of-sale.
TARGET MARKETS
The target market of Adidas is the urban youth with the brand proposition
‘competition to lifestyle’. The principle consumption centres namely the metros
are also a potential target market!
MARKET NEEDS
➢ Comfort
➢ Durability
➢ Style
➢ Price
➢ Brand
SITUATION ANALYSIS
THE CHALLENGE

COMPETITIVE SCOPES

THE INDUSTRY

ADIDAS is in the sportswear, apparel and sports accessories industry. The main
competitors of ADIDAS in the industry are NIKE, and PUMA since it acquired
REEBOK in January, 2006.
✔ NIKE
Nike is currently the world leader in Sports goods industry with a brand value of
$12,672 million. The company concentrates on style and technology with a high
price range of the products.

✔ PUMA AG
A German based company best known for its football shoes and athletic shoes.
The competition from Puma has become stronger after the 2008 Olympics in
which the Jamaican sprinter Usain Bolt broke records and won 6 gold medals.
Bolt was wearing Puma shoes!
PRODUCTS AND APPLICATIONS

COMPANY PRODUCTS
ADIDAS
 RUNNING

Shoes, spikes, socks,

FOOTBALL

Studded boots, stockings, team-its, warm up suites

BASKETBALL

Shoes, jerseys n shorts, team kits

GOLF – TAYLORMADE

Hats, gloves, bags, vintage clubs (golf sticks), golf

balls, putters,

CASUAL

Footwear and clothing

Apparels and accessories

NIKE

FOOTBALL

Boots, jerseys, shorts, stockings, team kits, warm up

suites,

BASKETBALL

Shoes, jerseys, shorts and team kits

GOLF

Shoes, golf balls, apparel

ATHLETICS

Shoes, spikes, compressor apparel, training kits

NIKE+

i-pods and watches

CASUAL

Footwear , apparels and accessories

PUMA

FOOTBALL

Boots

RUNNING

Shoes, studs, warm up suites and training kits

 GOLF

Golf ball and apparels

MOTORSPORT

Apparels, equipments and footwear

SAILING

Chute, board shorts, cruising jackets and accessories

CRICKET

Bats, gloves, pads, footwear, training kits, apparels and

equipments.

PRODUCT OFFERINGS
Comfort, durability, looks, value for money!
COMPETENCE
The firm has a stiff competition in the Indian market. Currently, Nike is the
leading player in the industry.
➢ Multi-Brand Approach
There is a natural limit a brand can achieve given the diverse tastes and
expectations of a highly fragmented consumer market. Thus, a multi-brand
approach will provide the firm with a major competitive advantage and
significant additional commercial opportunities compared to a single brand
strategy. It can leverage the power of its brands in a more precise and
meaningful way, utilizing the combined strengths of each to compete for a higher
percentage of the market, covering a greater number of consumer needs, price
points and demographics.
➢ Broader distribution
Close cooperation with retailers can significantly improve the in-store experience
for the product. Establishing shop-in-shop formats (e.g. with JJB and Dick’s
Sporting Goods) or retail partnerships (e.g. with INTERSPORT) are examples
where the company is leading the industry. Such co operations can be
particularly effective in markets that have become dominated by price and lack
of differentiation.

➢ Cost leadership
The acquisition of Reebok has created significant opportunities to reduce and
optimize costs, through scale benefits, back office consolidation and combined
capital expenditure planning.

MARKET SEGMENTS
➢ Geographic segmentation
 ✔ Density: Urban and semi-urban cities

➢ Demographic segmentation
✔ Age: 15 to 35
✔ Income level: >Rs. 15,000
✔ Social class: Upper middle, lower upper and upper class
✔ Gender: Male and female

➢ Behavioural segmentation
BENEFITS SOUGHT
✔ Athletes
✔ Gym regulars
✔ Sports enthusiasts
✔ Brand freaks
✔ Image seekers
USER STATUS
USAGE RATE
BUYER – READINESS STAGE
LOYALTY STATUS
ATTITUDE

➢ Psychographic segmentation
✔ Experiencers
✔ Achievers
✔ Image drivers
✔ Strivers
PORTER’S GENERIC COMPETITIVE STRATEGY
The DIFFERENTIATION strategy would help the firm in competing in a
competing market place.

The firm has a strong grip only in the basketball and casual wear product line.
Diversification of the products athletics, cricket and hockey would enormously
help the firm in competing in such a market as cricket is the most popular sport
in India. This would be a tough task since Nike is the sponsor of the Indian
national cricket team.

ADIDAS – Strategy in India

Adidas’ strategy in India has been consistent over the past few years. The broad
elements of the strategy are to target the brand to urban youth with our brand
proposition from ‘competition to lifestyle’ using the authentic sports platform and
build and reinforce credibility through relevant brand ambassadors and
grassroots sports marketing programs. Further, it would target principal
consumption centres, namely metros and build significant stand-alone exclusive
store presence in significant locations. The strategy would be to play to our
strengths, i.e. in apparel and mid to high priced footwear.

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