Stp Adidas

2560 Words Jan 2nd, 2016 11 Pages
Analysis of ADIDAS AG
Overview
Adidas AG (adidas or 'the company') with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide. The company has three major brands through which it sells its products adidas, TaylorMade and Reebok. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany. Adidas operates in Europe, the Americas and Asia and it had 53,731 people as its employee as of December 31, 2014. The company recorded revenues of E14 534 million ($19,315.7 million) during the financial year ended December 2014 (FY2014), an increase of 2.3% over FY2013. The
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Apparel’s of Adidas constantly use skimming price and are higher priced due to brand equity of Adidas in the apparel’s market. The target customer for Adidas is the upper middle class as well as high end customers. Adidas never uses penetrative pricing because that will affect the brand equity of Adidas. In fact, the higher price point helps in the price quality approach and psychologically, customers think that a higher price will mean better quality as well. Thus, Adidas rarely drops its prices.

Place
Western Europe, adidas’ largest geographical market, accounted for 27.9% of the total revenues
North America accounted for 21.1% of the total revenues in 2014.
European emerging markets accounted for 13.2% of the total revenues in 2014.
China accounted for 12.2% of the total revenues in the year 2014
Latin America accounted for 11% of the total revenues in FY2014.
Other Asian markets accounted for 14.6% of the total revenues in 2014.
Adidas markets its products through three segments the wholesale segment, the retail segment, and other businesses: * The Wholesale segment which is involved in various business activities related to the distribution of adidas and Reebok products to retail customers. * The Retail segment is involved in business activities related to the sale of adidas and Reebok products directly to consumers through its retail and

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