Major Case Analysis- Adidas

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Saint Leo University *

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Marketing

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Apr 3, 2024

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docx

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Running Head: ADIDAS Major Case Analysis Adidas Jenn, Brooke, Alexas, Celine Saint Leo University 1

Running Head: ADIDAS Company Profile Adidas is an athletic sportswear company that first developed in Germany by Adi Dassler in 1924. The company markets their products towards athletes all over the world and to anyone who wants quality workout gear. Adidas makes anything from shirts, pants, socks, to bags, gear for different sports, and phone cases. How they market themselves is by consumers, television ads, and social media. Their brand is on most of their products, whether it is the Adidas tri-foil emblem or it is just the company name on the products. (Adidas, n.d.) Adidas’ mission is to be the best sports company in the world and by best they mean to be the best design, build, and service for all of their consumers. To achieve their mission, they want to focus on authentic sports brands, like Reebok, because it allows for them to develop and create products, experiences and services aimed towards the consumer’s desires which would increase their leverage in the marketplace. (Corporate Strategy, n.d.) Adidas also will target strong markets that they compete against, like Nike and Under Amour, but they also prioritize investments that will lead to long-term growth and profitability in the company. They are also looking into innovation by enhancing services to customers and they are wanting to focus on sustainability by searching for a balance between shareholder interests and needs of the stakeholders in the company, including the people who work for Adidas. The role of their market is to be as global as possible and the roles they specifically want to take are to extend, lead, and grow globally. The values that the Adidas company are responsible for performance, integrity, diversity, and passion. These values link Adidas to its past to present day and ties into their overall mission for the company. Operations are aiming for Creating the New in the six global cities of L.A., New York, London, Shanghai, Tokyo, and Paris. They are working on collaborations with companies, models, and athletes to continue growing as a 2

Running Head: ADIDAS company. One of their most recent collaborations was with Parley Ocean which would allow Adidas to produce products from recycled plastic bottles. Adidas is a company working towards making the world a better place and how they’re sending this message is by partnering up with such a company for people to understand what they support. (Corporate Strategy, n.d.) When people see Adidas doing such a thing, making things by incorporating a core value of responsible stewardship by using what is given to them without producing more waste, people will tend to value this action and vision. This operation done by Adidas can be witnessed through social media. Social media is a big contributor to how the company markets themselves, and it is also how their competitors may market themselves as well. With sources like Facebook, Twitter, and Instagram, people will see ads from recent or similar searches or they will see news about a new product or something new the company may be doing. This kind of information is not only useful to the consumers of the Adidas company but also to their competitors. If their competitors see them do something and it turns out to be successful, they may attempt to do something similar or better to out-do one another. For example, Adidas partnering up to make shoes and other products out of recycled plastic water bottles may inspire other companies such as Nike or Under Amour to do something similar or better. Social media marketing is all done with technology and is a fast and efficient way to set a brand image for any company. Technology also allows for efficient production and distribution of the products produced by Adidas. Financially, Adidas has never had any issues recently. In the stock market, they have been pretty consistent. In the past three years, they have been increasing in their profits. (Yahoo Finance, n.d.) 3

Running Head: ADIDAS Opportunity As mentioned above, Adidas recently partnered with Parley Ocean, this being a part of their corporate strategy. However, this also opens a world of opportunities for the company to remain sustainable; sustainability being the ability to maintain the amount of resources required by both current and future generations at a desired level of availability. In this market, sustainability pertains to sales, specifically, to these six business benefits: speed to market, cost reduction, marketing advantage, employee engagement, ability to expand in innovative areas, and access to investments (HuffingtonPost, 2018). These, benefits are a part of the opportunity to remain sustainable through the partnership with Parley Ocean. Although, this is an ongoing partnership, and has been for a few years, many people do not know about this ecological take in the athletic-wear market. The newest marketing campaigns for Adidas have been geared towards “Creating the New,” which encourages creativity, but has not explicitly shown the impact Adidas has made. This is the specific opportunity, marketing. Adidas could market the good they are doing for the environment. Adidas states in its sustainability tab that “As a global sports company, we believe that through sport we have the power to change lives,” (ADIDAS, 2018). By incorporating Parley Ocean’s strategy: avoid, intercept, and redesign (Parley, 2018) Adidas has captured the health trend. They could incorporate saving the ocean one piece of plastic at a time to make a profit. In turn, when customers hear more about this, they will be inclined to buy the items because then the consumers get a sense of good, as if buying a piece of clothing changes how much pollution is added to the water. In addition, Adidas is doing their part to try to make a change, they should just market it better. Through this partnership, there has been a total of two 4

Running Head: ADIDAS commercial released in 2017, and little to no social media presence of the Parley Ocean products. Due to this, Adidas needs to increase the attention on these products in order for this partnership to not only be profitable, but sustainable. Situational Analysis History with Parley for Oceans The Adidas company is allegedly committed to sustainability. They obtained a strategic partnership with Parley for the Oceans. Parley for Oceans is. As of the year 2015, Adidas partnered up with Parley for the Oceans, “a leader in ocean conservation and eco innovation, creating awareness and forging collaborations to end the destructions of the oceans.” (Adidas, 2018) “As a founding member, Adidas supports Parley for the Oceans in its education and communication efforts and commits to the Parley A.I.R. (Avoid, Intercept Redesign) strategy.” (Adidas, 2018 page 92). By doing this Adidas is trying to turn a problem into progress by minimizing marine plastic pollution. Adidas started an influence in the athletic wear market by “starting mass production of shoes using Parley Ocean Plastic.” (Adidas, 2018) In 2016, Adidas started to integrate parley ocean plastic into key products like running, outdoor, Originals and Stella McCartney shoes, soccer jerseys and various swimwear. In the year of 2017, Adidas created more than one million pairs of shoes using Parley Ocean Plastic and started to reduce the use of virgin plastic in stores and offices. “During 2017, the initiative was extended to Adidas Originals, yielding pioneering outcomes such as EQT support ADV parley, as well as to apparel performance products in the form of four Major League Soccer (MLS) football jerseys.” Annual report page 69. (Adidas, 2018) In the year of 2018, Adidas has continued to produce Parley 5

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