The Adidas Brand

Brand equity is a business having the clout and power of its product(s) to leverage that equity or clout for its need to raise capital or increase customers. Developing brand equity is important because it allows companies to interact with their customers in order to induce loyalty which increases the growth of a company. Every company, established ones as well as start-ups have the ability to create brand equity. It is especially important for start-ups because in the first step of business, they would want to ensure that

“Generally we define brand equity in terms of effects of marketing that influences brand. Brand equity relates to fact that various customers results owe to branding or services or products. There are various views concerning brand equity and researchers have focused their study on brand equity as it is most essential element of branding and impacts satisfaction of customers to great extent. (Keller 1993, 42–44)”

Brand equity is a consumer-based concept (Elliot 2017) and strategic asset of a company that encompasses the idea of the added value a brand contributes to a product. Influenced by consumer choices, it is the characteristic of a brand that indicates high levels of performance and determines the success of companies.

Adidas has made many product developments like in the category producing football shoes such as predator that has developed for the past 3 years in order to meet customer demands. That was the main reason for potential new buyers for Adidas.

Brand equity is an important asset for any organization. It is also an assets that offers an organization or a brand a road to success. Brand equity is important because its brand's product is closely associated with its premium price in the market. An organization or a brand with positive brand equity typically have higher quality products and services when compared to similar generic unbranded products. Furthermore, brand equity is important because it helps an organization or a brand to strengthen its competitive edge in the market. It is important to an organization or a brand, the reason are that it help lower the marketing costs and allows a brand to enjoy higher brand awareness and brand loyalty. Therefore, the ultimate goal of a brand

Brand equity and brand value are also two concepts related to segmentation and brand positioning. Brand equity has no relation with what marketer creates but what consumers perceive to have been created (Olshavski, 1985). Brand equity is also intangible. It has been found that 43 per cent of the companies measure brand equity, while 72 per cent of them were confident enough with their brand equity; however, over 66 per cent has claimed that their companies had no long term brand strategy (Davis & Douglas, 1995). “Brand value increases as the brand becomes better known and as the company supports the brand at the different contact points” (Moskowitz, Gabay, Beckley & Ashman, 2009). Companies such as Coca-Cola and McDonalds have invested time and money on creating and supporting their brand names. Consumers are more likely to switch to a big brand compared to a small brand.

Kotler and Keller (2012, pp. 271-272) maintain that there are three main sets of brand equity drivers:

One thing that can make or break a company is its brand equity. Brand equity is the value that comes with the familiarity with a company’s branding and the feelings consumers have towards that brand (Brand Equity, n.d.). A company with strong brand equity usually gives consumers a sense of reliability and value; causing a higher inclination to purchase its products. It usually takes

Adidas AG sells sports shoes, apparel, and equipment in 170 different countries. There focus lies in football, soccer, basketball, running, training gear, golf, and apparel. This is a two billion dollar industry and with Adidas being a main cog. They also specialize in lifestyle goods including SLVR and Y-3 fashion brands. They have trademarked their three-striped logo that has become a global symbol of sporting excellence. They are the #2 sporting goods manufacturer behind only NIKE. Adidas’ main market is the footwear manufacturing industry. Research and development is what gives Adidas a competitive advantage. They focus many

Brand equity increases as brand loyalty, brand awareness, perceived quality brand associations, and number of brand-related proprietary assets increase and become stronger and more positive.

Brand Equity is the added value endowed by the brand to the Product. Although the idea of using a name or a symbol to enhance a product’s value has been known to marketers for a long time, brand equity has gained renewed interest in recent years. Brand managers realize that after years of look-alike advertising and over copying with me-too brands, they now live in a world of product parity. The ensuing price competition through short term price promotions reduces the profitability of brands leading manufactures to examine ways to enhance loyalty toward their brands. In addition, facing with the increasing power of retailers, manufacturers of consumer products realize that having the

As Nike is doing it, Adidas has very high R&D costs. The company wants to create new products that are more efficient than the older ones. For example, Adidas’ new football shoes are always lighter and always better looking. Through this example, we understand that the brand wants to create new trends to attract more customers. Adidas wants to take care about customers and that is why they offer them the possibility to buy a product that sticks to their personality, to their needs. This service permits customers to wear nearly every product of the brand, but personalized with their colors, their n nicknames, their favorite numbers etc. To do so, customers are often ready to pay 40 or 50€ more, what shows that the strategy that is following Adidas is clearly a differentiation

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.

for the company is nowadays towards teams, global sports events and sport associations (Dogiamis & Vijayashanker, 2009). Adidas can this way connect itself with emotional events in sport; they sponsor the European football championship, the soccer World Cup and the Olympics. They also sponsor national and local teams around the globe (Dogiamis & Vijayashanker, 2009). Adidas has changed their image from just targeting elite athletes and is now more about participation. (Aaker & Joachimsthaler, 2000)