Marketing Segmentation of Adidas Essay

In addition, these companies are able to easily compete in the sports apparel market because the barriers to entry are low. On the other hand, many companies should think twice before entering the market. One reason is the large capital costs that are required to meet consumer demand in the market. In addition to large capital costs, some of the largest companies have gained customer loyalty based on their strong marketing skills. For example, Under Armour, Nike, Adidas, Reebok, ASICS, make new entrants into this industry much more difficult to compete with when these companies have a big share in the market already. According to Exhibit 4 in the textbook, it shows the major competitors and brands in 2013. Nonetheless, competition is intense in the sports industry market but, the high levels of product differentiation can also act as a barrier to entry for many companies because company’s need a high level of marketing to market their brand to consumers.

Companies like Under Armour, Nike and Adidas/Reebok have high threats of substitute´s products. These companies share the sport apparel industry and are vulnerable to competitive pressure from the actions of buyers whenever they view that their products can be substituted for others. The availability of substitutes invites the costumer to compare performance, features, and ease of use as well as price. Under Armour’s major competitors are Nike and Adidas/Reebok because they have a similar or competing product offerings. The top sport apparel brands offer similar products and that is why each one of them needs to keep a high standard and produce good quality products in order for customers to keep buying their product.

The level of competition in the sector of athletic shoes, apparel and equipment is extremely high between two primary businesses in this category and that is Adidas and Nike. Other shoe businesses also are fighting to take a pieces of the market with new products and promotions these companies include for athletic shoes brands such as Reebok, Puma, Under Armour, Converse, Vans, New Balance, Fila, Asics, Keds, Geox, Rockport, Ecko and for clothing brands new competitors such as Tommy Hilfiger, Ralph Lauren, Nautica and the Gap. All of these emerging brands with some of them having their own customer bases or brand loyalty do threaten Nike’s control of the largest segment of the market. It is not so much the price of the shoes but the branding that drives the market. So if the brand is popular than that is what the customer is looking for more than price. Much of this threat to Nikes branding is from changing customer preferences for what brand of sports shoes that they want.

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

According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications

The strategic positioning statement of Adidas Group states that the company identifies as its strongest consumer market the 20- to 29-year-old age group, who are involved with sports somehow; either athletes or people that just enjoy doing sports. Also, Adidas is focused on targeting and strengthening its brand with the next generation of athletes in the 14- to 19-year-old age group because this group may be considered as one of

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,

The primary reason we’ve decided to target lower-middle class individuals in the millennial age range is due to the fact that we anticipate our consumers to be both quality driven and frugal. The shoe will provide benefits such as durability, style, and affordability to the consumers and will give them a great return on their investment. These shoes are made with the active millennial in mind. This generation of customers is also the first generation to grow up in the world of digital technology, as they are

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

At Adidas “impossible is nothing”. Their mission to be the best sports company in the world along with their ability to embrace breakthrough technologies and deliver superior innovative products is a testament to that fact. This paper will focus on how Adidas is leading the disruption in the field of sports apparel and will continue doing so in the years to come. “Creating the new” is the motto of their new strategic business plan until 2020. Adidas believes that through sports they have the power to change and impact lives. To achieve this Adidas has successfully orchestrated the process of automating shoe manufacturing by establishing Speedfactories. Innovation is the essence of the company which has been demonstrated by the creation of concept sneakers like the Futurecraft 4D. Their phenomenal study and understanding of the current market and strategic technology trends can be substantiated from their collaboration with Silicon Valley based 3D printing startup, Carbon. Adidas is so deeply committed to innovation to provide their customers a fulfilling experience that they are light years ahead of their competitors. They have been successful in leveraging AI, data analytics, big data and machine learning to add value to their products. This establishes the fact as to why Adidas features in the smartest 50 companies list of 2017. Their proclivity towards innovation and consumer centric products directly aligns with Vijay Govindarajan’s 3 box principle thus

Adidas have an objective of being the world’s best sports brand which shows great ambitions. They have maintained a great image therefore they have a lot of popularity and brand recognition. Adidas have a strong market

With its mission ‘to be the best sports company in the world’, Adidas Group is committed to constantly strengthen its brands and merchandise to enhance its competitive position. Adidas’ marketing mix analyses the brand and company that cover 4Ps (Product, Price, Place, Promotion) and explains the Adidas marketing strategy.

There is intense competition faced by Nike. Their competitors are Adidas, Reebok, Puma, and so forth, whilst competition is tighter with the coming of Adidas. More, the product line is slightly different between Nike and Adidas.

Market segmentation: The process of dividing a market into distinct groups of buyers who might require separate production or marketing mixes (Wells, Burnett, & Moriarty, 2006).