Fahim ShahMarketing Mix of Adidas (4Ps of Adidas)
This is a detailed analysis of the marketing mix of Adidas (4Ps of Adidas). Adidas is one of the largest sportwear manufacturers in the world. It is a German company, headquartered at Herzogenaurach in Germany.
Product strategies of Adidas
Adidas is a reputable brand in the sportswear industry. It is the second largest manufacturer of sportswear in the world. It designs and manufactures footwear, apparel, and accessories. It manufactures products for men, women, and kids.
Shoes, clothing, accessories, sports, and back to school are the product categories of Adidas. Each category contains a good number of products. For example, the clothing category includes shorts, trousers, tracksuits, swimwear, hoodies, sweatshirts, joggers, jackets, loungewear, sports bras, football shirts etc. Adidas also produces bags, backpacks, towels, sunglasses, gym and training bags, goggles, gloves, watches, and balls.
Adidas focuses immensely on sports. In fact, its mission is ‘to be the best sports brand in the world’ (Adidas, 2021). The brand is loved by youngsters and sports loving people. However, other customers are not catered for due to this focus.
Pricing strategies of Adidas
Price is an important element in the Marketing mix of Adidas (4Ps of Adidas). Adidas charges premium prices for its products. The products are aimed at high end customers. High prices make high end customers feel that the products are of higher quality.
However, premium pricing has its own challenges. For instance, many ordinary people are unable to buy the products. Particularly, people from developing nations may find it a difficult thing.
It is worth mentioning that as Adidas’ production is mostly done in Asia where it has access to cheap labour. Producing products with limited costs and selling them with high price increase its profit margins, though many people accuse it of profiteering. It should also be mentioned that Adidas mulls the sale of its Reebok brand as its popularity has waned (Butler, 2021).
Place/Distribution strategies of Adidas
Products of Adidas are available around the world. They are sold in retail stores, online website, e-commerce sites, and franchises. By selling on its website and on e-commerce sites such as Amazon, Adidas could reach a large number of customers as they have the opportunity to make purchases as and when required.
Adidas website allows customers to personalize their products to create the perfect gift! Similarly, at retail stores customers could physically see what they are purchasing which often impact on their buying decisions positively. However, it is worth stating that the supply chain shortages and challenges such as port congestion, lockdowns, and political instabilities in some countries in Asia are making it difficult for Adidas to meet the consumer demand and impact on its profitability (Hart, 2021).
Promotion strategies of Adidas
Adidas promotes its products by advertisements on television, print magazines, newspapers, and social media. It also sponsors international football teams such as Spain, Germany, Argentina, Mexico etc. and club football teams such as Real Madrid.
Adidas promotes its brands with celebrity endorsements. Beyonce, Kanye West, Stella McCartney, and Lionel Messi are some of the celebrities who it has worked with. However, it should be mentioned that celebrity endorsement is an expensive game.
In 2018, Adidas launched a membership program to offer personalized experiences to its most valuable customers. Through this membership scheme, it rewards customers for the purchases they make by offering exclusive hype products, access to launches, and special events. Its offer of up to 50% discounts on some categories also generates customer enthusiasm, though the profit margin on those products goes down.
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Last update: 06 September 2023
References:
Adidas (2023) Adidas, available at: https://www.adidas-group.com/en/ (accessed 06 September 2023)
Butler, S. (2021) Adidas confirms plans to sell Reebok, available at: https://www.theguardian.com/business/2021/feb/17/adidas-confirms-plans-sell-reebok-sportswear (accessed 03 August 2021)
Hart, C. (2021) Supply chain challenges dampen Adidas revenues, available at: https://www.cips.org/supply-management/news/2021/may/supply-chain-challenges-dampen-adidas-revenues/ (accessed 02 August 2021)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).
M Rahman
