Adidas Group Is a Global Leader

Since our company’s main focus is premium products we will aim for high contribution margins, around 50%, on average, over all five products. After establishing our company brand and products within the market we will look to increase contribution margin to be between 55%-60% over all five products.

Adidas is one of the most famous manufacturers of top-quality sporting goods. It is the market leader in sporting good alongside with its competitive rival Nike. It also consists of Reebok Sportswear Company.They produce different types and variety of products to all age categories such as bags, shoes, shirts and more. The Adidas group, headquartered in Herzogenaurach (Germany) started in 18th August 1920 by Adolf Dassler. Adidas witnessed its first international success in 1954 and that is when the German have won the soccer world championship. Adidas has 169 branches worldwide and total revenue of 11.9 M Euros. Adidas is well known of sponsoring many sports events such as world cup or Olympics in addition to the use of its products

The brand must be distinct and stand out in ways that relevance to consumers’ needs so as to be chosen by the consumers among thousands of brands in the market. However, before consumers respond to the brand’s communication efforts, the brand must be understood and understood correctly. That familiarity leads to a strong, positive consumer-brand connection.

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

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).

As such it is important to organize the marketing functions by customer groups. This would permit Adidas focus marketing efforts particularly on the needs of each group. Though Adidas’ main customers are Athletes, teens and Young adults’, it still caters for the needs of older adults, Children and coaches, therefore catering to a broad customer base. These differentiation would be in two main categories; Male and Female and further differentiated into shoe (footwear), clothing and accessories.

Adidas Group, the world’s second largest producer of sporting apparel has had a long and rich legacy of producing some of the highest quality and most technologically innovative sporting equipment particularly footwear. Champion athletes and sports teams trust the three stripes of adidas for helping them to achieve outstanding performance when they need it most. A world leader, adidas commands nearly a quarter (22 %) of the worldwide athletic footwear and apparel market. In the American sporting footwear and apparel market, the largest market for sporting footwear and apparel in the world, adidas holds 22% market share. In the race to be the world leader in sports apparel, adidas trails behind only Nike, which holds a worldwide market share of 33%. Adidas may currently trail behind Nike, but its rich legacy and focus on

While three brands give us the collective power, we have to be careful to market them uniquely so

Nike is one of the most recognizable brands in the world. It is not only renown for its high quality athletic apparel but it is also known as one of the best manufacturers and designers for sporty fashion for both the gym and the streets. Nike is among the sole companies that took note that, “Americans are wearing yoga pants, running gear and basketball shoes not just to-and-from the gym, but also around town.” (Fortune). Active wear is suddenly chic. They noticed that Americans find that athletic gear is comfortable after all. Analysts say that the attention manufacturers are making to fabrics and new colors and styles have helped to broaden the category’s appeal. “Active wear is booming, with sales growth exceeding that of the apparel market as a whole, consumers are drawn to its comfort and versatility, and the fact that it still makes a fashion statement.” (NPD analyst Marshal Cohen). Part of Nike’s success in 2015 is because the company altered its marketing strategy, it moved away from a single-slogan approach in favor of a targeted advertising campaign. The company’s social media and Internet based marketing practices and the Nike ID personalization website that allows customers to design their own footwear is one of the few features that makes Nike stand out from the rest. All of this information is provided on ‘Nike Digital Sport’, a part of the company that makes personal performance tracking devices and software that allows the company to obtain user data.

The competence of the Under Armour, Nike, and The Adidas Group are energetic and can be maintained continuously. All of three companies focus on the development, marketing and distribution of branded performance apparel, footwear, and accessories for men, women and youth. In one hand, they both have a large powerful brand image and benign reputation, in the other hand,

Adidas is a German worldwide corporation that designs and produce sports shoes, clothing and accessories headquartered in Herzogenaurach, Bavaria. It is the largest sportswear manufacturer in Europe and the second biggest in the world. Football kits and the associated equipment for football has always been Adidas main focus  . Adidas remains a major company in the supply of team kits for international association football teams and clubs. Adidas makes referee kits. Adidas referee kits  are used in  competition internationally  and used by many countries and leagues in the world. Adidas has been a go-getter in the area of footwear for the sport, with famous examples including the 1979 release of the Copa Mundial moulded boot used for matches on firm dry pitches. It holds the honor of the bestselling boot of all time. The soft-ground equivalent was named World Cup and it too remains on the market, timeless and iconic.

The company also maintained higher operating margin of 13.9% compared to close competitor, adidas AG, which recorded 6.2% during the same period. Strong financial performance enables the company to gain investor confidence and improve growth prospects.

Their typical buying situation is summarized by low-level involvement in a market that displays high levels of product differentiation. Common to this type of consumer, is “brand switching”, in order to satisfy their need for diversification.

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

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.