Marketing Mix of Adidas: Product, Price, Place, and Promotion
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This report analyzes the marketing mix of Adidas, including product strategy, pricing, distribution channels, and promotional strategies. Recommendations are also provided for the company to improve its market share.
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Marketing Abstract Adidas is considered as the largest company and the company focuses on offering quality goods to the customers. The purpose of the report is to consider the marketing mix of Adidas. The method that will be used in this report is secondary data and also the overall products offered in the market and their price, promotion and place will be analyzed. It has been analyzed that the company has a good position in the market and just because of this goals and objectives are achieved by the company. So, it has been seen that there are many types of products offered by the company with high quality. It can also be concluded that the company achieved a large market share if the focus is given on reducing the overall price of the products. Also, it is recommended that Adidas should focus on enhancing the overall production process by emphasizing on reducing the actual cost and this can help the company to grow in the competitive market. 1
Marketing Introduction Adidas is considered as one of the largest multinational corporations. Headquarter is situated in Herzogenaurach, Germany. It has been analyzed that in Europe the Company is known as one of the biggest sportswear manufacturers. The manufacturing and designing of the shoes are done in Germany. The company deals in the apparel and accessories sector. The products which are sold by the company are Footwear, Sportswear, sports equipment, and toiletries. There are more than 56,888 employees who are managing the overall activities of the company (Adidas, 2018).Adidas was the company which has three strips logo and it is considered by the company in clothing and shoe designing as a marketing aid. So, in this paper, the focus will be given on the overall marketing mix of Adidas. Method To evaluate the Adidas market mix, this report relied on the information from the secondary sources. The sources considered from the literature that helps to analyze the exact information related to the marketing mix. The information is also taken from the Adidas official website so that it can help to ensure that the information from the literature sources was correct and latest. Case study 4.1 Product Adidas is considered the biggest sportswear brand with the motive of introducing the products with good quality. In the product strategy of Adidas, the emphasis is given on covering the overall product line. The company also sells sports bags and sportswear with good quality so that customers can be satisfied with the services offered by the company. In 2000's the company was the first in the sector to introduce the new segment of the lifestyle and also they focused on street wear. The company offers a wide range of products which consist of apparels, running shoes, soccer shoes and the sports utilities for tennis and volleyball. The company also focuses on designing the unique watches, caps, and sunglasses so that large market share can be grabbed. In the segment of networking, it has been seen that Adidas is also known as one of the subsidiaries 3
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Marketing named as Runtastic which also creates the applications for the fitness activities. The main focus of the company is on making the apparels and equipment for all sorts of sports so that it can be simple to attain profits. It has been seen that company grabbed the large market share by introducing various products in each sector and it has enhanced the overall demand of the product in the market (Alipour & Sabzikaran, 2018). 4.2 Price It has been seen that the company has a set of customers and the main aim of the company is to offer the best quality of products to them. It can be stated that just because of the innovative technique and continuous improvement of the products the company has achieved success in the market. The products which are offered by the company are premium priced which also consider the best quality. The strategy of pricing has emphasized the high quality by maintaining the price level of the products (El Sabour & Mohamed, 2016). It is only because the products of the company are customized according to the need. The products of the company are offered at a high rate just because of the quality or the material which is used. This also makes the product less affordable for the people of the developing nations. The pricing of the products can be affected by the import tariffs and import regulations and it is just because of the reason that most of the production of the products is done in Asia just due to the lack of cheap labor. But the company never compromised with the overall quality of the product with the price. So, the prices of the products are justified (Ang & Rusli, 2018). 4.3 Place Adidas has many outlets all over the world. There are many distribution channels of the company like Franchises, specialty stores, and online stores. So, it has been seen that there is the extensive global reach of the products in the market. The company main aim is to reach the customers in every area and in every country. The company is associated with ILO (International labor organization) and IFC (International Finance Corporation) which also lead to the overall sustainable in comparison with the competitors.There are also flagship stores of the company and it is present on the global platform. By emphasizing on the digital platform it has been seen that the company is emphasizing to grab the online market not only through its website but also by focusing on the multi-brand e-commerce websites (Naidu and Babu, 2016). 4
Marketing 4.4 Promotion The company used various sources to promote the products and services in the market. It has been seen that the company used the social media strategy to promote the products in the market. 360 branding strategy is also considered by the company in which the focus is given on media and communication (Laluyan, Pangemanan & Worang, 2017). The company promoted the products through commercial campaigns like print, TV, and billboards. It has been seen that Adidas also featured the leading players in various sports segment. Through these techniques, the company enhanced the market share and achieved growth in the competitive market (Jensen, Wakefield, Cobbs & Turner, 2016). Conclusion So, by focusing on the report it has been stated that Adidas is one of the largest company on the global platform. It has been seen that there are various products introduced by the company in the market which are purchased by the customers. The overall sales of the company have been enhanced and this is just because of considering the place and promotion strategy. The products of the company are sold on the global platform which enhanced the overall demand of the customers and also it can be easy for the customers to purchase the products of the company. The promotional strategy considered by the company is 360 branding strategy in which the products can be easily promoted with the help of social media sites and also through traditional marketing. The company considered social media sites for marketing the products and with this, the company accomplished its overall goals and objectives. 5
Marketing Recommendations It has been recommended that company should focus on reducing the price of the products so that it can be easy to achieve the large market share. Less cost of the products attracts large mass of the customers so by reducing the price the company can maintain the large customer base. 6
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Marketing References Adidas., 2018.P.O.D SYSTEM.[Online] Available from: https://www.adidas.co.in/. [Accessed on 6 October 2018]. Alipour, M. and Sabzikaran, E., 2018. Investigating the Effect of Brand Authenticity on the Importance of Brand and the Desire to Buy (Case Study: ADIDAS Brand).American Journal of Business, Economics and Management, 6(1), p.1. Ang, C. and Rusli, H., 2018. The Impact of Marketing Mix 4Ps and Consumer Behavior toward Purchase Decision of Adidas Products.iBuss Management, 6(2),pp.52-60. El Sabour, A. and Mohamed, H.F., 2016. Sports Logo as a Marketing Enhancement Tool of Printed Sports Wear.International Design Journal, 26(56), pp.1-10. Jensen, J.A., Wakefield, L., Cobbs, J.B. and Turner, B.A., 2016. Forecasting sponsorship costs: marketing intelligence in the athletic apparel industry.Marketing Intelligence & Planning, 34(2), pp.281-298. Laluyan, W.N., Pangemanan, S.S. and Worang, F.G., 2017. The effect of advertising, perceived quality and brand awareness on consumer purchase intention (Case study: Adidas sport shoes). Jurnal EMBA:Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 5(2), pp.50. Naidu, G.R. and Babu, R.H., 2016. A Case Study Of: Clint Relationship Management (CRM) Practices In Selected Organized Retail Outlets.IJSEAT, 4(2), pp.091-099. 7