ADIDAS MARKETING PLAN

Contents

Executive Summary

Company Profile

Market Segmentation & Targeting

Situation and Company Analysis

Ethics and Social Responsibility

Marketing Information and Research

Customer Decision-Making Profile

Positioning and Differentiation

Branding

Marketing Mix (4Ps)

Product Strategy

Pricing Strategy

Place: Distribution Strategy

Promotion: Integrated Marketing Communications Strategy

Budget

Action Plan

Risk Factors

Attributions

Executive Summary

Company Description

The brand Adidas has built and will continue to build will continue to grow and be a household known brand. The shift I would like to see in the brand is a total takeover in sustainability. This would be at the responsibility of the company to all the back-end work and supply a product that people could be proud to own knowing they are a part of the solution but purchasing Adidas over other brands.

Target Segment

All people

Competitive Advantage

Supreme Branding

Positioning Statement

We strive to be the sportswear leader in technology sustainability and comfort.

Marketing Plan Objectives

Introduce the world to new high tech and sustainable products that will stay in style for generations.

Company Profile

• Company Name: Adidas

• Industry: Retail

• Headquarters (city, state, country): Herzogenaurach, Germany

• Year founded: 1949

• The number of employees: 62,000

• Annual revenue (estimated): $19,844,000

• Major products and/or services: Shoes

• Target customers: Adults

• Distribution channel(s): Retail stores and online web store

• Key competitors: Nike

• Link to website: www.adidas.com

• Link to Yahoo! Finance information page (for public companies): https://finance.yahoo.com/quote/ADDYY/

Market Segmentation & Targeting

• Adidas footwear provides stylish athletic shoes and solves the problem of having to choose between one or the other.

• The total market is the whole world everybody that needs shoes.

• Adidas is segmented based on demographic, psychographic & behavioral factors.

• Demographic- B2C company would include such demographic traits as age, education, gender, occupation, family status, and income.

• Psychographic- groups based on social class, lifestyle, or personality characteristics.

• Behavioral - behavior patterns when interacting with a particular business or website.

• Adidas marketing plan focuses on the following segments.

• Demographic- Adult Male, Female & Kids

• Psychographic- Original, Style and Performance

• Behavioral- Adidas focus on social class because people within a given social class tend to have similar buying behavior.

Situation and Company Analysis

Economic Environment

Factors that affect Adidas customers purchasing power and spending patterns depends on economic class. The economy remains stable for now but has volatility at the same time it may be heading into a recession in the future. There are adidas options for all classes however the amount spent, and types of items may vary. Current interest rates are around 2.9%. Consumer confidence is high and especially in this industry of athletic gear.

Technical Environment

As technology advances adidas and athletic brands will be on the forefront of technology with the best comfort and performance technology.

Industry Environment

More jobs are working from home or becoming relaxed about causal wear in the offices. Athletic brands are growing more and more in popularity as comfortable clothing is becoming more embraces.

Competitive Environment

The key competitor to Adidas is Nike. Nike has a longer and more establish brand. But Adidas is slowly creeping up on the Nike brand. The competitive advantage that Adidas has over Nike is the bad publicity and accusations that Nike shoes were using child labor in their imported items for their products. There are several more competitors such as Under Armor that are not yet a threat.

Political Environment

Fortunately, with fabrication items there is not too much regulation. Most of the regulations would be about the plastics and non-toxicity of the product which do not produce any challenges.

SWOT Analysis

HELPFUL Ideas

HARMFUL Concerns

Internal

Strengths

• Adidas has a strong branding presence.

• There are so many celebrity endorsements such as Kanye, Beyonce and Pharrell.

• Yes, it has different items to target each all the segments of the target market.

• What makes the products unique the brand is established and a style icon.

• The value brought to customers is style and comfort technology.

Weaknesses

• Does the organization have a weak brand presence? No

• Are resources insufficient for marketing activities? No

• Does the company lack distinctive products or services? No, the superstar and three stripe branding are well known and often imitated.

• Do current products or services fail to satisfy the needs of customers? No

• Do current products or services fail to bring value to customers? No

External

Opportunities

• New fabric technologies that integrate with iWatch or other applications

• Adidas could pair up with other companies that are ecofriendly.

• There is opportunity to work with customers to improve products through testing.

• Market demands are increasing through covid comfort is being prioritized.

• Governments may become stricter on products that have non-recyclable plastics and they may need to revamp and find new recyclable products.

• Global issues facing the company is to be more sustainable

Threats

• The tactic used by Nike is branding they are such a well-known brand.

• The biggest strength of the biggest competitor Nike is that they have a bigger store presence unlike adidas which need to me purchased through other retailers.

• Competitors will always put out competitive products and new releases at the same time.

• Nike has many legacy products such as Air Force 1’s, Jordans and Cortez where Adidas does not have many legacy products besides the superstar shoe.

• Sizing varies from shoe to shoe.

• If the market decreases and nobody has feet anymore or plays any sports, there would be no need for the shoe market, and they would only need clothes

Mission, Objectives & Goals

“The Adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.”

Objectives:

1. Create new sustainable fabrics

2. Technology integrated shoes and athletic gear

3. Partner with rainforest saving

4. Pay a living wage

Ethics and Social Responsibility

Current Status

Out of all the big sportswear brands Adidas is ranked the best. Ethics, corporate social responsibility and pursing sustainable business practices are important to Adidas. Adidas addresses their code of ethics and their responsibility to sustainability and has greater plans to implement them through 2025.

During the pandemic Adidas was able to reduce net carbon emissions and reduce water and energy consumption. Adidas will continue reducing energy consumption and CO2 emissions. They plan to continue this trend started during the pandemic by transitioning to clean energy and seeking energy harvesting opportunities. A portion of eco-friendly and recycled materials are currently using the products and leads the industry in sustainability.

Although Adidas does not have control over what other companies do, they do have the choice of who they will partner with in their supply chain. To being in the Adidas supply chain businesses must submit to audits and traces. Also, during the pandemic Adidas committed to protecting suppliers and workers in the supply chain from the negative impacts COVID-19.

Adidas also commits to minimizing animal suffering by using wool from well treated animals and excludes materials such as exotic animal skins and furs.

Recommendations

To create a more ethical, socially responsible, and sustainable business, Adidas must address caring for the earth, animal rights and human rights. Recommendations include the use more natural and compostable materials, use recycled and recyclable materials. Stop using leather and create a more sustainable recycled faux leather product. Ensure that wool use is from free range sheep. All energy should be solar powered and only ecofriendly office supplies should be used. Employees should be given benefits and the supply chain should continue to include gender equality, LGBTQ+ and race inclusions and well as anti-age discrimination. In addition, there should be a fully paid lengthy benefit for paid Maternity and Paternity leaves.

Marketing Information and Research

Research Question

To help the organization, meet its goals and objectives the company must begin paying a living wage and benefits to employees. The amount of money a brand spends to endorse celebrities or athletes is a large enough amount to signify that the Adidas brand could pay a living wage and benefited job to all employees. There are many resources showing that this is having a negative social impact on the brand.

Information Needed

As a very well-known and popular brand it is also known that celebrities and professional athletes get very generous endorsements from the brand. It is also a public company where sales and revenue are also public knowledge. Last year alone Adidas experienced a 6 percent net sales growth to $23.6 billion last year. Adidas employees, especially at the lowest or entry level positions often work long hours for very little pay. They work hard to reach production strict schedules. Adidas brands pump out large quantities of products as fast as possible.

Research Recommendations

Adidas must conduct primary research through employee surveys to measure the overall satisfaction of its employees. Also, finances will need to be reviewed for both sizes by analyzing revenue and payroll analysis to forecast the cost of fair pay on the company financially. The company can expect a greater public view of the company once the employees are given a living wage. With all data collected action items for improvements for their Human Resources will be apparent A shift in how the company is viewed will change for the greater and more consumers would rather purchase from Adidas than other sporting goods companies with less favorable treatments to their employees. They should facilitate discussions and the idea of workers unionizing to ensure fair treatment for all.

Customer Decision-Making Profile

Identifying the Customer and Problem

The primary decision maker in my target segment is a parent, they can make purchasing decisions for them, their spouse, and their children. This is probably the most effective target segment. The primary problem Adidas solves for families is getting shoes in styles for all members in the family that have arch support but also are stylish at the same time at the same store.

Factors Influencing Customer Decisions

• Geographic characteristics: The US would be a large client for Adidas. Mainly those in areas where it is not snowing, they are able to wear a tennis shoe that is not water resistant. However, those in colder areas also must get athletic gear for indoor exercise.

• Personal and demographic characteristics: Families with school age children can indulge the most bang for their buck at a one-stop shop.

• Social and Psychological characteristics: Folks from all cultures, social classes and lifestyles and beliefs would all indulge in the purchase of a tennis shoe.

• Situational characteristics: As a known brand people will buy Adidas products for the logo. Branding has brought Adidas return clients.

• B2B/organizational buying considerations: B2B opportunities arise for department stores and chain and private owned shoes stores to purchase shoes or athletic gear and sell them at a retail price. However, Adidas is also able to get great sales directly through their own online shop. So, the retailers really need Adidas shoes to compete with other retailers, but all are still competing with the Adidas shop itself.

Reaching the Customer

1. Celebrity endorsements do very well with this brand. They should continue create product lines with celebrities such as Beyonce, Pharrell and Kanye West. These celebrities have cult followings and will buy anything with their beloved celebrities touch on it.

2. Segmentation marketing towards families and mothers and fathers who have the buying power. These families can buy for all family members and can even use programs such as After Pay to pay in installments.

Positioning and Differentiation

In the market Adidas would like to be the most well-known sportswear brand with the most sustainable business model and products as well as the happiest well taken care of employees. Also, Adidas would like to be known for having the unique technology in their materials as well as the most ecofriendly. Other competitors are unable to keep up with Adidas in this aspect for ethics and corporate responsibility. Though there is still work to be done on this forefront Adidas will lead the way for the industry by being the first completely sustainable big brand sportswear company.

Competitive Advantages

Things that make Adidas have the competitive advantage is that Adidas has a long-standing good reputation and great classic items that can fit to any family’s style or economic status. Branding is well established and seen on celebrities but also local parents and hip teens. Comfort technology is the most important factor of why Adidas product get picked up over a competitor who focuses more on a style and look than the comfort which is neglected.

Market Niche and Positioning Strategy

The market niche that I want to fill is the professional sports teams. With the current items as classics that are constantly improved a technology infused shoe or athletic gear item would be the best strategy. First, we will use the marketing strategy by giving the customer exactly what they want with the highest quality and to fulfil their needs wishes. Next, we will use the selling strategy to push a hard sell to each professional team that this is the brand they want. The quality of the materials used in the shoes and clothing is revolutionary.

Positioning Statement

“To target athletic teams Adidas is the only sports gear that delivers quality, high technology, reputable athletic gear and is able to gain untouchable celebrity partnership because it is the elite brand for athletic gear and wear.

Repositioning Considerations

I do not recommend a repositioning statement currently as Adidas is working well toward very achievable and current goals to the company and the industry and the world.

Branding

Brand Description

The brand Adidas has built and will continue to build will continue to grow and be a household known brand. The shift I would like to see in the brand is a total takeover in sustainability. This would be at the responsibility of the company to all the back-end work and supply a product that people could be proud to own knowing they are a part of the solution but purchasing Adidas over other brands.

Brand Promise

The Adidas brand's mission is to be the best sports brand in the world, by designing, building, and selling the best sports products in the world, with the best service and experience, in a sustainable way.

Adidas promises a good fit with a well-rounded promise to the quality of the product, style, and social accountability.

Brand Voice and Personality

• Adidas is stylish, sustainable, fair, comfortable, fast, athletic, high tech, innovative, inclusive for everybody, healthy, quality.

• Adidas is never wasteful, discriminatory, unhealthy, offensive, single use.

Brand Positioning and Strategy

A branding position or strategy to help build the Adidas brand and contribute to align it with what the target market wants would be a marketing campaign to give shoes to underprivileged communities. One pair given for every pair purchased. This would contribute to the success of Adidas because it would give them the edge in the social responsibility that would make every consumer choose Adidas over one of its competitors.

Marketing Mix (4Ps)

Product Strategy

Adidas Product Strategy

The adidas tennis shoes comes in many styles However the most significant style tennis shoe is the NMD and boost line. These are two different shoes but with the same technology and similar styles. They both have a robust base or sole with a wide bottom and arrow towards the top where the sole connects to the shoe. There is special technology used in this base, a very specific crafted material.

The features that can be removed or added to the shoe are the extra logos in certain styles. Since the shoe is a slip on with laces the laces could also be changed with various styles. The NMD/boost shoes offer something that other shoes cannot. They offer boost technology which excels in categories of both comfort and style. The shoe comes in various versions depending on the look you are going for. Either NMD for casual and simple and the boost ultra for a more athletic style.

Though the shoe may continue to develop the main style and the boost performance material in the sole of the shoe would stay the same. The shoe comes in a simple and minimal style that proves to be timeless. The main shoe would remain the same while offering different material patterns and colors. The quality is maintained to be consistent in the boost NMD shoe line.

As technology grows new versions and improved material will be made. New materials will have more temperature control, water resistance, water proofing and durability. We are considering integrations with apple watch for exercise tracking. As Adidas moves forward with these inventive new technologies, the NMD and Boost remains a constant with the most modern athletic material technology.

Pricing Strategy

Pricing for Adidas varies, there are options at lower and higher to very high end. The lower priced clothing and shoe lines are the basic items. Pricing is competitive for basic items because it must be comparable to its competitors. Other styles such as the NMD and Boost line are sold using skimming pricing. They are new and innovative and start off at a high-end price and as new styles come out the pricing will go down. Unique styles especially celebrity lines such as Ivy Park by Beyoncé and Yeezy by Kanye West are high priced and stay that way and rarely go down and if they do it is not much at all. Adidas keeps a reputable brand by being consistent with pricing and avoiding penetrative pricing as a low price would reflect poorly on the branding reputation. Adidas does purposely lower prices of items when new items come out as the newer items make the older items look out of date or not as good because they are not as new. This keeps customers buying the more expensive new shoe over a shoe on sale. At the same time those who cannot afford the full price can get a chance to pick up a pair for NMD or Boost tennis shoes. Customers will keep buying Adidas because of the prestige and because of the staple items that are classics such as the 3 stripe track suits and the superstar shoe line. To achieve profitability or break-even Adidas revenue must hit $9,990,000.

Place: Distribution Strategy

The current distribution strategy includes both brick and mortar stores and e-commerce. Adidas products can be found in both Adidas stores and in other wholesale partners.

Adidas current distribution strategy is a brand distribution strategy by creating a significant presence in select locations in the global market. Adidas is available in 6 global markets. At Adidas it is called the Top City Strategy focusing on retail stores in New York, Los Angeles, Paris, London, Shanghai, and Tokyo. These strategic placements are the best choice for Adidas because they are situated in significant global cities that have a major impact in the fashion industry. While the main Adidas locations reside in major global cities, outlet stores remain in both urban and suburban areas globally.

Adidas also has a major focus on creating a premium consumer and wholesaler experience alike whether it is digital or physical. The Adidas online app caters to 30 countries. Not only is online accessibility for the end-user but also for the distributors. Wholesalers who sell the Adidas product are also able to use a B2B Distribution tool, an Adidas App called “Click” which is available in 41 countries.

Missed opportunities are being minimized at Adidas by focusing on various channels of customer engagement. Adidas allows customers and wholesaler to have conveniences to do inventory checks, buy online and pick up in store, ship from store to home, buy online and return to store, “Partner Program” to become available to more wholesale retailers, and an “Endless Aisle” which allows in store customers to access entire e commerce inventory.

Adidas also has created an optimization program to shift focus and resources to the most profitable channels to have improved the distribution mix of the company and increase profitability.

Promotion: Integrated Marketing Communications Strategy

Approach

Globalization is a great opportunity for Adidas in the past, present and future and has allowed Adidas to grow as big as it is today. Adidas has over 2,500 stores globally. Adidas is based and started in Germany, and it is the largest sportswear store in Europe and the second largest in the world. To be able to market to all the different economies in the world Adidas' varying price range plays a big role as it can be affordable for all nations even if they are still developing. Adidas must also sell items that cater to each individual culture where their stores are based. In the countries that are developing or industrialized are healthy places to grow new store locations. This allows Adidas to grow in popularity.

Some challenges Adidas would face are different rules and regulations and taxes in different countries especially regarding production, materials, and sales taxes. Also, in some countries Adidas is unable to develop because the country had certain regulations on media from the government.

As far as segmentation strategy, premium pricing may not work in all countries as well as it does in more fashion driven countries. They may have to sell their more affordable clothing lines rather than their NMD/Boost, Ivy Park, or Yeezys which are items with a higher price tag which would not sell well in underdeveloped or developing nations. The same distribution channels would also not be available country to country. Each economy would have a different means of best transport ex, plane to Hawaii, trains across Europe, truckers across the United States and ships for overseas.

Goal

Our goal is to create all sustainable products made from recycled materials.

Messages

1. Primary Message: Adidas cares about the earth

2. Message Pillar: We will become a sustainable product company by the year 2030

3. Proof Point: One by one we will convert our products to sustainable materials.

4. Call to Action: Register online today.

Promotional Mix and IMC Tools

• Who is the target audience? The target audience is all genders and all ages of people with various economic statuses. There is a product line for anybody. Everybody should wear Adidas and give them a try; they would find that they are much more comfortable than the competitors.

• What is your goal? Adidas goal is to provide the most comfortable fashion and technology forward with the most advanced and eco sourced ethical materials.

• What approach and strategy are you using for the campaign? For Adidas campaign we are using celebrity lines and strategic locations to put a high fashion influence on a brand that is accessible to all.

What is your proposed promotion mix, and which specific marketing communication tools will you use? Why do you think this is the right promotion mix for achieving your goals with this audience?

Advertising and sales promotions are the promotion mix for Adidas. Advertising is not only done by email and Adidas own Instagram directly from Adidas. But also, through celebrities and online influencers posting wearing Adidas gear or receiving promotional boxes. For example, Beyonce drops new items for her Ivy Park line at Adidas and sends free promotion boxes to other celebrities who post them on their social media. In exchange for sending the items the brand is exposed to broad audiences who are influenced to purchase items from Adidas.

For Adidas goals, the promotional mix is very influential. The popularity online also leads to items being purchased by lots of celebrities and therefore all people of all economic statuses can get a piece of the brand since there are items priced at every price point.

Sales Alignment

Our products reputations precede itself therefore the sales leads will come to us.

Measurement (KPIs - Key Performance Indicators)

• Total sales/revenue – This will show the overall success of the goal.

• New customer sales – This will show new business from the goal.

• Engagement - comments, likes, shares, page views, video views- This will show the presence of the brand.

• Followers - social media (Facebook, Twitter, LinkedIn, YouTube)- This will show the growing popularity.

Budget

Item

Purpose

Cost Estimate

Item #1

Tester groups for new product feedback

$20,000

Item #2

Design team Prototypes

$10,000

Estimated campaign impact: Sell out of product on original release date.

Action Plan

Timing

Activity Type

Brief Description

Audience

Owner

Date DEC 2021

Brainstorming

Meet with focus group and decide which product will be made in recycled materials

Executives

CEO

Date JAN 2022

Interview Vendors

Screen vendors that produce or distribute recycled materials

Executives and possible vendors

CEO & Chief Officers

Date FEB 2022

Select Vendor

Selection and evaluation of all final vendor choice with most sustainable and compatible recycled materials

All employees vote

CEO

Date MARCH-DEC 2022

Produce Product

Test prototypes and select best style and ways to incorporate sustainable materials into tech fashion

Sample group and Design team

Head of operations

Date JAN 2023

Market Product

Email, Instagram, social media presence, send PR boxes to influencers, web and in store promotions

Marketing team to worldwide audience

Head of Marketing

Date MARCH 2023

Distribute Product

Distribute to retailers and get ready for shelfing on Launch Day

Supply Chain and Retailers

Head of Distribution

Launch Date

JUNE 2023

Go live with product

Put product on shelves and online store

CEO

Risk Factors

To reduce possible risks for the company such as a recession. The company maintains so many levels for selling at lower price points. Additionally, the company faces the risk of a warehouse fire which would be covered by insurance. Another risk in the pandemic is a covid outbreak somewhere along the supply or distribution line, in which case there is so much product available that resources could be re allocated.

Attributions

CC LICENSED CONTENT, SHARED PREVIOUSLY

Flinders Business School Marketing Plan Template. Authored by David Medlow-Smith. Located at: https://archive.org/details/FlindersBusinessSchoolMarketingPlan2. License: CC BY-SA.

ORIGINAL CONTENT

SWOT and Integrated Marketing Communications Templates. Authored by Melissa Barker. License: CC BY: Attribution.

Revision and adaptation. Authored by Lumen Learning. License: CC BY-SA.

Revision and adaptation. Authored by Waymon D. “Wade” Hyde, faculty, El Centro College/Dallas County Community College District. License: CC BY-SA.