Adidas Marketing Strategy: How the Brand Dominates the Market

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Editorial Team

Adidas is known by many people, not just sports lovers. It started in Germany making shoes. Now, its worth is over 21 billion euros. It is a top choice for sports clothes and gear. Adidas shoes are selling fast. By June 30, 2022, Adidas made sales of $24.559 billion. It began in Herzogenaurach, Bavaria, selling soccer gear. Now, it is one of the top sporting goods companies. It competes closely with Nike in the sports clothing market. This article will look at how Adidas makes its products and markets its brand. This has helped Adidas stay successful for 73 years.

Introduction

Adidas: The Powerhouse Brand in the Sportswear Industry

Adidas is the world’s second-largest sportswear maker. It started in 1924 as a small shoe factory in Germany. Now, it is famous for its creative products, big partnerships, and smart marketing.

The Journey from a Small Shoe Factory to a Global Giant

In 1924, Adolf Dassler began making soccer gear at his mom’s house. His brother, Rudolf, soon joined him. But later, they went separate ways, with Rudolf starting Puma. Adidas kept growing and got Reebok in 2005. This move made Adidas even stronger in sports gear.

Overview of Adidas’ Marketing Strategy

Adidas has worked hard for 70 years to be a top brand. It focuses on quality, new ideas, and reaching many people through ads. This helps Adidas stay ahead in the sportswear market.

Adidas aims its ads at athletes and young people. It sells many sports clothes, gear, and more. The brand uses unique designs and works with others to make cool stuff. By pricing things higher at first and using lots of ads, Adidas sells its new items well. It sells in stores, online, and in its own shops.

Adidas Brand Profile

Company History and Milestones

Adolf Dassler founded Adidas in Germany in 1949. He was known for making top-notch sports shoes. Thanks to his love for new ideas and quality work, Adidas quickly became famous. It was the first company to make football boots with screw-in studs. Then, in 2005, Adidas gained Reebok, making it an even bigger name in sports gear.

Vision, Mission, and Brand Values

Adidas wants to be the best sports brand globally. They believe sports can change lives. Their tagline “Impossible Is Nothing” shows they’re about pushing limits. They focus on making quality products and being innovative in sports and more.

Product Portfolio and Diversification

Adidas offers all kinds of things like t-shirts, hoodies, shorts, and sports gear. They sell sweaters, tracksuits, jackets, and more. They also make fragrances, backpacks, sunglasses, and watches. This helps them meet the needs of many customers. They compete with big brands like Nike by offering a lot of choices.

Target Market Segmentation

Primary Target: Athletes and Youth

Adidas focuses on athletes and young people aged 20 to 30 in their marketing. They also aim at 13 to 18-year-old athletes, seeing them as future stars.

Secondary Target: Fitness Enthusiasts and Lifestyle Consumers

Adidas broadens its customer base. It includes anyone who loves sports and staying fit. The brand appeals to those aged 40 to 65, offering top quality to attract wealthier shoppers. It also targets 15 to 25-year-olds who view its shoes and clothes as trendy fashion.

Product Strategy

Adidas is known for making famous shoes that everyone loves. They have shoes like the Superstar for basketball, the Stan Smith for tennis, the Samba for soccer, and the Ultra Boost for running.

Iconic Shoe Models: Superstar, Stan Smith, Samba, and Ultra Boost

The Adidas Superstar changed things in basketball when it first came out in 1969. With its special shell toe, it made a big impact. Another favorite is the Stan Smith, a top pick in the tennis world. The Samba started as a soccer shoe but is now popular for everyday wear. Finally, the Ultra Boost is known for being an extremely comfortable running shoe.

Apparel and Accessories: Sportswear, Bags, and Equipment

Besides shoes, adidas offers a lot of clothing and gear for sports and everyday use. You can find things like sweaters, shorts, and swimsuits. They also have backpacks, sunglasses, and watches for all activities.

Innovation and Collaborations: Adidas x Parley, Yeezy, and More

Adidas works hard to be creative. They partner with different people to make their products better. A great example is their work with Parley for the Oceans. They use plastic waste to make shoes. Adidas also has special lines made with famous people like Kanye West and Stella McCartney.

Pricing and Positioning

Adidas sells its products at high prices. It says they are better and not everyone can buy them. Many rich people and those in the middle with lots of money are the main buyers. They pay more for Adidas’ famous stuff.

Premium Pricing for Quality and Exclusivity

Adidas is known for its quality. It makes its products seem special and not easy to get by. This makes people keep coming back to buy more, no matter the cost.

Skimming Strategy for New and Innovative Products

New Adidas products start with high prices. As time goes on, the prices go down. This allows many people to get these new cool things, after the rich early buyers.

adidas marketing strategy

Adidas uses many ways to stay on top in the sportswear world. It uses old and new ways to talk to people. This makes sure its messages are seen and heard well.

Traditional Advertising: TV, Print, and Billboards

TV ads, magazines, and outdoor signs help adidas show its stuff to lots of people. This is how they let everyone know what they’re about.

Digital Marketing: Social Media, Influencer Campaigns, and Online Advertising

Adidas also does a lot on the internet. They use Facebook, Instagram, and Twitter to talk to young people. They work with famous online stars and athletes to spread their message.

Sponsorships and Athlete Endorsements

Adidas backs big sports teams and events like the NBA and FIFA. They also work with famous players like Lionel Messi and Naomi Osaka. This makes them more trusted in sports.

Distribution Strategy

Adidas has a big network, with over 500 factories in 55 countries. You can find its products in stores, showrooms, and mega marts, as well as online.

Extensive Retail Network: Physical Stores and E-commerce

In the U.S., Adidas has 177 stores, with 29 in California. Worldwide, it has over 1,200 concept stores. It also sells its items on Amazon, Flipkart, and its own website to reach more people.

Strategic Partnerships and Collaborations

Adidas works with many retailers to sell more. It uses special strategies to offer better shopping experiences, improve online selling, and enhance sales in different places.

Adidas vs. Nike: The Fierce Rivalry

The sporting goods market is worth around $310 billion. Adidas and Nike are big names here. Nike leads in money, yet both have their ways to win customers.

Differentiation and Positioning Strategies

Adidas targets soccer and tennis players. Nike is more for those who love basketball and running. They both make a variety of products for all sports.

Marketing Spending and Advertising Campaigns

Adidas and Nike spend a lot on marketing. They use stars to sell their gear. Nike made over $1.2 billion thanks to its “Just Do It” ads. Adidas is known for slogans like “Impossible Is Nothing” and “All In”.

Athlete Sponsorships and Brand Ambassadors

Adidas and Nike sign big deals with athletes. This makes their brands more popular. Nike works with stars like Michael Jordan, and Cristiano Ronaldo. Adidas picks famous athletes and stars too, like Pharrell Williams and Kanye West.

Adidas’ Digital Transformation

Adidas is really focusing on online sales these days. It sees how important e-commerce and digital ways are. Its online store is becoming very popular, bringing in lots of money. It plans to make €4 billion by 2020, which is four times more than what it made in 2016. This big jump shows Adidas is serious about changing how it sells things.

Embracing E-commerce and Online Channels

Places like www.adidas.com and www.reebok.com now sell a lot more worldwide. Adidas is spending over €1 billion to be more digital. This is all part of the plan to do much better by 2025, called “Own the Game.” It’s a big effort to catch more online customers and stay strong digitally.

Social Media Engagement and Influencer Marketing

Adidas is big on Facebook and Instagram, with millions of fans. It teams up with famous people and online stars to sell more. For example, a campaign on TikTok with female athletes did really well. Over 57 million people saw it. This shows how Adidas is good at using digital ways to connect with its fans.

Personalization and Customization Initiatives

Adidas lets customers make their own stuff on its website. This makes shopping more fun and personal. They really want to give each customer a special experience. Adidas believes this will make people like their brand more.

Sustainability and Corporate Social Responsibility

Adidas shows it really cares about the Earth. It tries hard to not hurt the planet and to help people. Adidas works with Parley for the Oceans. Together, they use plastic from the ocean to make shoes. This means they care about using things again, which is good for the Earth.

Adidas’ Commitment to Sustainable Practices

Adidas is really aiming high for being kind to the planet. By 2025, it wants 9 out of 10 things it makes to be made in a good way. It also wants to make sure it uses less gas in making things.

In 2025, Adidas hopes it won’t add more to the air that’s bad for the Earth. And by 2050, it wants to be all about how to make things in a way that helps our planet. It plans to make things in a better way that doesn’t hurt the Earth as much by 2030 too.

Initiatives and Partnerships for Environmental and Social Impact

Adidas joined hands with many people to do good things. It works with others to make sure the places they get their stuff from are fair and good for people. The Fair Labor Association checks if they are doing a good job. This shows Adidas wants to make sure people who help make their stuff are treated right.

Adidas is a big sponsor of the FIFA World Cup Qatar 2022. In August 2022, they asked to talk about making things better for workers in Qatar. They made sure people who sell their stuff there know about how to be fair and take care of people. This shows Adidas wants to make things better for all workers.

Adidas is also working with the International Organization for Migration (IOM). They want to make sure getting a job is done in a good way. Adidas has promised to fight against making people work by force in their supply chains. They tell everyone what they are doing. People see they are doing a good job in doing business the right way. This includes making sure workers are treated well. They’re getting awards for improving how they do business in a way that helps other people and the Earth.

Adidas is working really hard to be gentle on our planet and to be good for people. They work with others to make sure what they do is right for everyone. They are leading the way for others in their industry to be more caring. They really want to do better for the Earth and for all of us.

Adidas’ Global Expansion Strategy

Adidas is a leader in sportswear worldwide. It focuses on new markets for growth. It uses its skills well, adjusting to please the locals.

Emerging Markets and Localization Efforts

In places like China, India, and Latin America, Adidas sees great opportunities. It makes products and ads that fit these places. This helps reach more people.

Strategic Cities and Cultural Influence

Adidas is not just expanding geographically. It aims to be a big deal in cities that shape trends. Places like Paris and New York are key for its strategy.

By focusing on local tastes and hitting big cities, Adidas shines globally. It connects well with different people’s wants and needs.

Memorable Marketing Campaigns

“Impossible Is Nothing” Campaign

Adidas’ “Impossible Is Nothing” campaign inspires young people. It encourages them to control their future and follow their dreams. The brand uses AI and technology to make unique ads. They show famous athletes like Muhammad Ali against their family. This highlights the message that with belief, anything is possible.

“Your Future Is Not Mine” Campaign

Adidas boldly started the “Your Future Is Not Mine” campaign. Using AI and top tech, they made ads that capture attention. These ads feature stars like Muhammad Ali competing with their family. They stress that you can make your future as you believe in yourself. Thus, the “Impossible Is Nothing” message hits home.

Collaborations with Celebrities and Influencers

Adidas teams up with big names to make unique products and ads. They work with people like Kanye West, Beyoncé, and Stella McCartney. This helps them reach a wide range of fans. By partnering this way, Adidas makes its brand more popular and appealing.

Future Outlook and Challenges

As Adidas moves forward, staying relevant is a big challenge. It must keep bringing new ideas in the sportswear world. With hopes of growing in 2024, it aims to hit a €500 million profit. To do this, Adidas needs to be quick to adapt and always meeting new demands.

Maintaining Brand Relevance and Innovation

Adidas has made its mark by always pushing quality and new ideas for athletes and active folks. To keep leading, Adidas should keep investing in new tech and work closely with top names in the field. Together, this helps make amazing new stuff and experiences.

Adapting to Changing Consumer Preferences

Today, what sportswear fans want is changing fast, mostly for the younger crowd. Adidas needs to keep up by making sure its stuff and how it talks to people fits these new wishes. Important parts include being green, letting people make stuff their own, and having a strong online vibe. These things are key to win over modern shoppers.

Competitive Landscape and Market Saturation

The market is packed, with Nike and others in the game fighting for a big piece. Getting ahead means standing out more these days. To stay up, Adidas might jump into new areas, find new spaces to fill, or make its story even more interesting. It’s about looking for the next big thing.

Conclusion

Over 73 years, Adidas has become a known and loved brand. It focuses on quality, new ideas, and great marketing. These things help it change with what people want, use new technology well, and do better than other sportswear sellers.

Adidas has fans who love sports and those who just like its style. By being part of big sports and cultural events, Adidas becomes even more popular. It’s known for cool designs, a focus on helping the environment, and smart digital adverts. Adidas is seen as more than just sportswear; people see it as part of their everyday life.

Looking ahead, Adidas must keep coming up with new things people will want. The sportswear business is getting more crowded. Handling tough competition, making smart moves in a full market, and listening to what buyers want are big tasks. Yet, with its strong base, clear goals, and love for quality and newness, Adidas should do great in the future.