1. 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. The importance of having a good positioning strategy is to help the company to create its competitive advantage, create a consistent image for a product offering and to utilize particular strengths. Brand portfolio of Adidas Group is to build and manage a diverse brand portfolio with distinctive brands covering consumers from sport performance to sport lifestyle. (Adidas Group, 2013) There are two types of positioning, that is product positioning and market positioning (Kotler et.al, 2007) Market positioning was discussed earlier while product positioning is defined as the way the product is …show more content…
(Adidas Group, 2013) Each brand and sub-brand is responsible for bringing its own distinct identity and positioning to life. Through the creation of products and communications that not only support the commercial functions in their day-to-day business activities, but also provide the platform and framework for long-term market share and profitability improvements. (Hitesh Bhasin, June7, 2016) For example, adidas has include the adidas sport performance, adidas Originals and Sport Style. The adidas Sport Performance is for gaining sales and market share in the running and basketball categories. (Adidas Group, 2013) The adidas Originals & Sport Style is for expanding in the fast-fashion business with the adidas NEO label and maintaining the strong momentum of adidas Originals. Furthermore, the Reebok is for establishing Reebok as the leading fitness brand.4 (Group Management Report, 2013) Adidas is positioning the Originals brand as the brand which supports creative expression and is the footwear of choice for passionate creative people. This is the brand of creative expression and this brand is 100% street …show more content…
Adidas has created an inclusive platform encouraging them to show off or represent what they do best. It's smart and savvy and quite an evolution of the Adidas Originals brand. (Sid Lee, 2014) Adidas brand positioning is clear and distinct. Adidas established their positioning based on creating beliefs and values. The brand mission is quite simply to become the leading sports brand in the world. It aims to do this by becoming the best performing brand in all sporting goods categories. To achieve this, the brand continues to produce the highest quality performance products possible at marketplace prices.6 (Superbrands Ltd, 2003) Furthermore, products will continue to be designed and developed to enhance the performance of all who participate in sport, irrespective of their age, gender or ability. They create beliefs to the customers. Positioning statement: “To young, adidas Originals speak directly to the most fashion-conscious consumers in the lifestyle market. Adidas is the only brand that can fulfill your needs in sports. (Adidas Group booklet,
Adidas is a large sportswear brand with a large customer base for all genders and ages. Adidas who is a very similar brand to Nike, have exclusive ranges, including their Jordan range and Original, they are also a
Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.
As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,
1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the
Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.
Nike has totally changed the sports footwear and sportswear market. Nike's huge selection of merchandise consists of specialized workout equipment, footwear, clothing, accessories and sports components. Nike is among the world's biggest brands and a leader in the sportswear industry because of their advertising, innovative products and sponsorship of top teams and
It seems Adidas works to be transparent with the global community, they are striving towards meeting all customers’ needs, in all walks of life, while giving back to communities. They follow a corporate mission that reflects human resources, social and environmental affairs, and community affairs; thus, good corporate social responsibility
Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.
This report provides an analysis and evaluation of two of the biggest companies Nike and Adidas in athletic footwear industry. One of the most popular products is selected from each of the company to investigate. The report is conducted by analysing detail into the athletic footwear industry and both companies’ background, macro and micro environment forces, market segmentation, target markets, targeting strategies and position strategies. Many secondary researches which will be in the appendices to are done to finish the report. The results show that Adidas and Nike have similar market segmentations and targeting market. Their targeting strategy and positioning strategy are also similar, although the major parts of
Adidas is also targeting a certain class of people, that is women by launching under the idea that the “collection is for women who take their sport and their style seriously” and that
Today, the adidas® product range extends from shoes, apparel and accessories for basketball, soccer, fitness and training to adventure, trail and golf . adidas®, like many companies during the 1960s, believed in large volume sales. Lot of effort was put into advertising the brand in the early days through sporting celebrities. One of the main reasons that the colour of the 3 stripes on the running shoes was changed from black or dark brown to white was to facilitate easy brand recognition and identification, which in turn would promote the overall sales. The ideology was that the ability of a brand to stand out in the market place will enhance its chance of standing out in the customers mind. adidas® produced shoes that could be used for different types of sports.
Considering each sub brand, it uses market coverage strategy which identifies as a market coverage strategy in which a company goes after a large share of one or a few submarket. (Kotler et al 2010, p279) For example, Adidas Orginal promotes classic style. It comprise the side collection of numbers of items such as sneakers, clothes, eyewear an watches. In addition, it promotes for different gender, also it targets on customers refer to their lifestyle, which are interest, hobbies and personality , for example, the people like skateboarding would like Adidas Original. adidas Originals with its Trefoil logo has become a relevant part of many people’s lives, whether they are skaters, rockers, artists, musicians, sneakerheads, sports fans and so on. In 2011, Adidas Originals promotes a new line which is
In this report I will analyse how Adidas is influenced by its contemporary business environment. Furthermore, I will portray how Adidas if influenced further by several other factors including social, economic, technological,political and legal factors throughout the company. Adidas is a
Inspired by the heritage, Adidas know that a profound understanding of the consumer and their journey in sport is essential to achieving this goal. To anticipate and respond to their needs, it continuously strives to create a culture of innovation and creativity. By harnessing this culture together with their insights and knowledge of sport, Adidas push the boundaries of products, services and processes to drive a long-term strategic advantage. This, in turn, will drive value creation for their company and
Adidas is a sportswear manufacturing company started by Adolf Dassler. Adidas group has incorporated brands including Adidas, Reebok, TaylorMade-Adidas and Rockport. The wings of the company are widespread and have assimiliated other productions including handbags, shirts, spectacles, watches, balls, and sportswear. Adidas is being the largest company that sells footwear in the European market and have achieved a momentous market share at the global platform. Adidas has achieved phenomenal sale and have reached the pinnacle of success on the global scale with other international footwear companies (McDonald & Milne, 1999).