Marketing Strategy and Management for Adidas

This assignment provides an in-depth analysis of the marketing strategies employed by Adidas, including direct exporting and licensing, social media marketing campaigns, and segmenting consumer reactions to social network marketing. It also explores the impact of service marketing mix on bank performance and introduces Ansoff's Matrix as a tool for market analysis. The assignment aims to provide students with a comprehensive understanding of marketing concepts and strategies in real-world business scenarios.

Introduction to Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Identify the current marketing strategy of organization and its comparison between
competitors ............................................................................................................................3
Identify the consumers segment for driving growth of company ..........................................5
Extended marketing mix of company and make recommendation .......................................6
TASK 2 ...........................................................................................................................................8
Apply Ansoff's Matrix framework to organization and suggest strategies for future growth to
expand into global market .....................................................................................................8
TASK 3 .........................................................................................................................................10
Create marketing campaign to increase consumer awareness for goods and services ........10
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Marketing is the action, set of organizations and procedure for making, communicating,
delivering and exchanging offering which have worth for consumers, clients and partners and
society at the large level. It is the procedure of satisfying needs and wants through exchanging
the relationship for achieving the organizational objectives (Armstrong and et.al., 2015). It is the
important function in all the businesses and companies and is becoming to success in modern
global economy. The marketing is successful only when company's vision, mission and activities
as well as ability to leverage technology align and complement each other and whole business.
The present study is based on Adidas is a multinational company, established and
headquartered in Herzogenaurach, Germany. This company is popular for designing and
manufacturing clothing, shoes and accessories. It is the largest manufacturer in sportswear all
around the Europe and second largest in the world after Nike.
TASK 1
Identify the current marketing strategy of organization and its comparison between competitors
(Fahy and Jobber, 2015).
Adidas came into existence in the year 1924 in Germany by two brothers Rudolf and Adi
Dassler. The company was named as Dassler shoes but later became Adidas. The company is
known for manufacturing apparel, sports footwear and accessories. It also offers running, tennis
and basketball shoes for men and women. The mission of Adidas group is to become a global
leader in the sport industry with sports brands produced for sports and sporting lifestyles (Anda
and Temmen, J., 2014).
Difference between ADIDAS and Nike marketing strategy :
It involves product, pricing strategy, promotional tools, distribution channels, sales
promotion and targeting consumers. Therefore, both companies require determining all strategies
of marketing for attracting customers and achieving to sustainable competitive advantages in the
retail marketplace.
Basis ADIDAS Nike
Product Strategy ADIDAS is a leading sportswear
and goods brands including
As opposed to, organization offers
shoes and apparel equipment and

apparel, footwear, accessories.
Adidas has always focused on
providing the best of the
equipment and goods to the
athletes with their innovative
products.
accessories.
Pricing Strategy Adidas has a particular set of
customers and it focuses on giving
best products and experience to
them. The company uses
skimming and competitive pricing
strategy. (Krishna and Schwarz,
2014).
As compared to, Nike follow value
based pricing strategy in which they
provide lowest prices goods at
maintain quality. Firm provides low
and stable prices after receiving
feedback from their consumers and
reducing expenses of promotion to
further lower prices.
Promotional
Channels
Adidas has set up an effective
portfolio of promotion
partnerships with multinational
recognised sports associations. It
also uses social media, print media
and other marketing activities to
promote it products.
As opposed to, Nike use personal
selling, direct marketing. This aid to
get more customers towards goods
and services of firm (Armstrong and
et.al., 2015).
Distribution Strategy
(Place)
The backbone of Adidas is its an
agile supply chain and it is
enhancing the number of customer
touch points. Factories of the
company have been subcontracted
by number of suppliers to perform
operations that main suppliers are
not able to perform.
As compared to, Nike has retail
online stores are allowing consumers
to complete all their daily shopping
one trip and under one roof (Anda
and Temmen, 2014).
Sales promotion Adidas rarely offers any coupons As opposed to, Nike use sales

or rebates as such however they
have sales often for promoting
several original and new Adidas
products. The company recently
had a sale in which they offered
70% off on most of the products
along with two coupons for $10
off on purchases of $50 or more.
promotions in forms of club card,
free gift to attract more customer as
compared to ADIDAS.
Targeted consumers The main target customer for the
company is 13 – 30 years old
consumers.
As compared to, company shift
traditional marketing strategy to
digital marketing to reach highly
targeted consumers.
People The high consumer satisfaction is
the most essential for company
(Baker, M. J., 2014).
Employees and consumers
experience towards products and
services of Nike.
Process Adidas is implemented the internet
marketing strategy for planning of
marketing process.
Nike is implemented the social
media strategy for planning of
marketing process.
Identify the consumers segment for driving growth of company
Consumer segmentation is the activity of dividing consumers base into group of single
persons which are similar in specific modes relevant to marketing like age, gender, interest and
spending habits. It is the also known as customer, clients segmentation and process. Through
this, ADIDAS can markets to each group effectively and appropriately (Fill and Turnbull, 2016).
This process involve deciding collection of number of data and ways of gathering, evolving
methods of data analysis for segmentation, set up impressive communication between applicable
to business unit about segmentation and responding the information as well as apply the
applications to effectively deal with data (Campbell, Ferraro and Sands, 2014). There are
different consumers segments such as:
Demographic Segmentation:

This segment sorts a markets by demographic components such as age, education,
income, family size, race, gender, occupation, nationality and so on. It is the one of the easiest
and most commonly utilised forms of segmentation, because buying products and services by
consumers. In this context, ADIDAS selecting age and gender segment for their targeting the
customers for their products and services.
Age: Company select 13- 30 years age consumers group to identify the needs and wants
for their products and services (Baker, 2014). This segment is relevant because each age group of
people buy clothing, footwear products specially food products on daily basis. This help to
increase sales and future growth of firm (Kotler and et.al., 2015).
Gender: ADIDAS mainly focus women for clothing, footwear and house products
section in the company. Women are very interested to purchase foot wear on special occasion
and particular food products on daily basis. Therefore, this segment also relevant to increase
sales and future growth (Campbell, Ferraro and Sands, 2014).
Occupation: Organization select consumers who are professional and self employed for
selling the products and services to the customers. This segment is not relevant because self
employed people are not purchased products and services regularly, so that it impact on sales and
growth of business (Schmidt, Spann and Zeithammer, 2014).
Income: Firm select consumers group in income segment under £40000-60000 for
selling the products and services. This segment is relevant to firm for increase sales and profits
as well as growth in the future.
Psychographic Segmentation:
This segment takes into account the psychological point of view of consumers behaviour
by dividing markets according to life style, values, personality traits, opinions and interest of
customers. ADIDAS focus on upper class consumers in lifestyle segment for selling the products
and services in the marketplace. If the company has provided product according to lifestyle and
choice of consumers, so that this segment is relevant to business in terms of increase sales and
profits of business (Zeriti and et.al., 2014).
Behavioural Segmentation:
This segment divides markets by behaviours and decisions making patterns such as buy,
consumption, lifestyle and utilization of products and services by consumers. Segmenting

markets based off purchase behaviour allows marketers to develop more targeted approach
(Tuten and Solomon, 2017).
Purchase: Company focus on consumer who purchase regularly of their products and
services. This approach consumer and occasion level segmentation models and offer determining
of individual consumer's needs, behaviour and value under various occasions of utilization and
time (Zeriti and et.al., 2014).
Benefit Sought: This segment allows to be divided into sections with well-defined needs,
perceived value and advantage which increases from buy of products and services. ADIDAS
utilising this segment can develop products with various quality levels, performance, consumers
services and any other purposeful benefits in different goods at the each of segment . This
segment is relevant to company, because they offer clothings, footwear, home products
according to consumer need, high quality level of products and services. This help to make
profits and future growth of ADIDAS (Kotler and et.al., 2015).
Extended marketing mix of company and make recommendation
Marketing mix is the combination of different elements such as product, price, place,
promotion, process, people and physical evidence which is used as the marketing strategy in the
ADIDAS. In this context, extended marketing mix involve current product portfolio, pricing
strategy, retail distribution and brand image of company.
 People: The employees and consumer satisfaction are main elements involving in the
people component of marketing mix (Cates and et.al., 2014).
 Process: The company must have followed the procedures of providing the goods and
services of ADIDAS (Campbell, Ferraro and Sands, 2014).
 Physical Evidence: The image of Adidas is highly attraction of consumers towards their
products and services (Zeriti and et.al., 2014).
 Current Product Portfolio: The current product portfolio of ADIDAS covers different
products for all age group be it mean, women and children. Company offers products
clothing, footwear for women and men. ADIDAS are mainly sold in house brand instead
of another global brand. Therefore, company is popular and top chain brand in the world
based out of UK. In clothing section, company offers for women such as jeans, shirts,
skirts, Blazers, suits and many more. Company offers footwear like boots, sandals,

heels, loafers etc. for women. In this context, company should expand range of products
such as children's footwear and clothing across the worldwide (Cates and et.al., 2014).
 Pricing Strategy: ADIDAS follow competitive pricing strategy for their product
portfolio. This pricing strategy means setting price of product and service which is based
on charging by competitors. Therefore, company has in house brand are priced between
medium to higher category, because of their premium quality. But still ADIDAS follow
competitive pricing strategy as consumers have more options to select from in relation to
increase competitions. Also, organization faces competitions from online retailers and
other large retail players. During the seasonal time, they adopt dynamic pricing strategy
in which they offer products and services on higher discount as well as sell the old stock
at lower prices to get more consumers in the market. In order to that, company should
follow penetration pricing strategies in which they offer products and services on lower
prices to attract the consumers (Tuten and Solomon, 2017).
 Retail Distribution: The distribution of products and services is essential for getting
more consumers in different places. Adidas has employed more than 59000 employees
all over the world in 2017. Firm has got its presences in countries such as India, Spain,
France, Ireland, Hungary etc. Also, they have own websites from consumer can
purchase products and get home delivery. Company also gives an option for
international delivery for limited goods. The company has followed exclusive and
simplify distribution strategy which try to high image in front of consumers. In order to
that, ADIDAS should follow selective distribution strategies for selling the home
accessories to attract the consumers in the marketplace (Campbell, Ferraro and Sands,
2014).
 Brand Image: Company use promotion tools to enhancing the brand image in the
market place. Therefore, ADIDAS align advertisement campaign with digital marketing
and stores strategy. Company utilise print media, TV advertisement, mobile ads etc.
Also, they use their own websites to promote its brand cloths for men, women and
children. Consumers can find blogs and fashion tips on their websites. They also give
special discount in season sale to their loyal consumers. In this context, ADIDAS should
make efforts to runs loyalty programs Sparks which adds points to consumer's account
on the basis of amount spending on shopping by consumers (Khan, 2014). This reward

point can be spent on future purchases from stores of ADIDAS. This program help to
promote products and services as well as increase brand image in front of consumers in
the marketplace (Cates and et.al., 2014).
Recommendation:
Adidas should follow the competitive pricing strategy in which they should decide the
pricing the products as compared to their competitors. Company should increase their online
presences for increasing sales and profits as compare to their challengers.
Conclusion
From the above, it can be concluded that Adidas follow marketing strategies such as
product, pricing strategies, distribution channels and promotional strategies for achieving the
marketing obejctives.
TASK 2
Apply Ansoff's Matrix framework to organization and suggest strategies for future growth to
expand into global market
Ansoff's Matrix framework is the strategic planning tool which gives framework to aid
executives, senior administration and devise strategies for future growth. This strategy focuses
on present and potential goods and consumers. This market growth matrix implies that company
attempt to grow depend on whether their markets new or existing products in fresh and existence
markets. There are four combinations of products and markets (Islam and Rahman, 2015). Such
as:
Market Penetration:
In this section, ADIDAS tries to achieve growth with sell existing products in the
existence markets. The aim of firm is to enhance market share in the retail industry. Market
penetration has limits and once market strategy saturation another strategy can be pursued while
company is to continue to grow in the market.

Product Development:
In this section, company develops new products for targeting to its existing market
segments. It can leverage their strengths through evolving new product target to their existence
consumers in the marketplace. This situation is occurred when the strength of ADIDAS is related
to consumers and their products. Therefore, this strategy is more suitable for company for future
growth in the retail industry (Ansoff's Matrix, 2010).
Diversification:
ADIDAS develops new products for fresh markets for diversifying into new business. It
is the high risky which requires both products and market development. If the high risk is
remunerated by the possibility of huge rate of return, so that this can be reasonable choice of
company. This strategy is good to gain support in attractive industry and reduce risk of overall
business portfolio (Islam and Rahman, 2015).
Market Development:
The organization tries growth through targeting their existence products to new market
segments. It involves move of additional market segment or geographical areas. If the core
competence of ADIDAS is related to specific product instead of experience with the particular
market segments so that this is good strategy development of new markets for the products. The
Illustration 1: Ansoff's Matrix
Source: (Ansoff's Matrix. 2010)

market development is risk rather than market penetration strategy while firm is expanding into
fresh marketplace (Cates and et.al., 2014).
In this context, there are many strategies which help to expand their business in global
market. Therefore, they should adopt different strategies for their future growth in international
marketplace. Such as:
Direct Exporting: It is direct selling into market. ADIDAS should use this strategy when
they have set up sales programs turn to agents or distributors to show them further in the market.
Agents and distribution work very nearly with companies in representing interest (Parente and
Strausbaugh-Hutchinson, 2014).
Licensing: It is comparatively well-informed preparation where company transfers rights
to utilise of products and services to another firm. It is the particular useful strategy is the
purchasers of licenses has comparatively large market share in the market (Armstrong and et.al.,
2015).
Franchising: This strategy works well for companies which have repeatable business
model that can be easily transferred into other markets. If the company has strong brand
identification and business model is unique, so that they can be used globally and creating the
future competition in the franchisee.
Joint Venture: These are particular kind of partnership which includes creation of third
severally handled company. Both companies are shared risks and profits equality (Armstrong
and et.al., 2015).
Therefore, ADIDAS should follow joint venture strategy for future growth in relation to
enter into international market. This help to increase sales, profits, revenue and market share in
both local and global marketplace.
Recommendation:
Adidas should follow Ansoff's matrix while they want to develop their new product and
services within the marketplace. They should adopt joint venture for entering into international
marketplace.
Conclusion
From the above, it can be discussed that company needs to follow Ansoff's matrix and
many of modes for entering into new market such as joint venture and directing exporting which
help to accomplish the goals and objectives of marketing.

TASK 3
Create marketing campaign to increase consumer awareness for goods and services
Marketing campaign is the main method for both communicating with their market to
reach their positioning and consumer acquisition. Therefore, ADIDAS needs to create marketing
campaign for increasing consumer awareness to their products and services in the marketplace .
Marketing campaign involves goals and objectives, generate the strategies, target the audience,
create budget, measure and test as well as improve (Fahy and Jobber, 2015).
Objectives of Marketing Campaign:
 The goal of marketing campaign is to increase consumer awareness for products and
services of ADIDAS.
 To increase the sales of 30% of products and services in the business.
Generate campaign idea and strategy:
After identify the objectives, company needs to generate the ideas and strategies for
campaign for products and services of ADIDAS. Organization needs to sell products through
channels to market and consumers. Channels involve social media, internet marketing, direct
mail, email and traditional sales activities. Also, they determine which is the best and most
effective channel for meeting the particular objectives (Krishna and Schwarz, 2014).
In this context, ADIDAS select social media platforms for marketing campaign for
increasing consumer awareness for products and services in the marketplace. Social media
marketing is the one of the best and most effective channel or activity which help to achieve
marketing campaign of organization. This activity is more beneficial for company to increase
sales and increase consumer awareness of products and services. Therefore, every person use
social media for buying the products such clothing, footwear and other accessories. Thus,
company needs to create marketing campaign on social media platforms like Facebook, Twitter,
Instagram etc. which help to sell of products and services. With this, consumer know more about
their products and services as well as purchase them (Anda and Temmen, 2014).
Target Audience:
After generate the ideas and strategies, company needs to target audience for selling of
products and services in the market. In this context, firstly select segments then target those
segments in the marketplace. Therefore, ADIDAS choose demographic, behaviour segments
which is categorised subdivisions such as age, gender, income level, occupation, lifestyle,

benefits etc. Firm select 13-30 age group, women as gender, upper class, £40000 to £60000
income and quality conscious group of consumers.
In this context, selected organization tries to targeting all segments to increase consumers
awareness for products and services in the marketplace. With the help of it, enhance sales and
profits of business. This aid to improve competitive advantage in the retail industry. For targeting
the those segments, company needs to adopt social media networks such as Facebook, Twitter,
Instagram etc. This channel help to increase consumer awareness towards products and services
(Fill and Turnbull, 2016).
Create Budget and estimate return on investment
It is the necessary to create budget and estimate return on investment for marketing
campaign by ADIDAS's. This help to implement marketing campaign in the marketplace for
achieving objective in relation to increase sales and consumer awareness for product and services
in the marketplace (Baker, 2014).
Activities Amount (£)
Website Development £25000
Marketing Plan £20000
Utilization of social media network £40000
Television ads as promotional tool £10000
Marketing plan:
After estimate the budget, company needs to make plan of marketing in which they
analysis environmental factors, SWOT analysis, segmentation and positioning of goods and
services for targeting consumer, marketing mix strategy, make budget and their implementation
etc. Marketing plan help to identify the factors such as developing technology, consumer
demand, particular segments, determine product, pricing, distribution and promotion strategies in
the marketplace. This help to create marketing campaign for achieving the objectives of this
campaign in terms of increasing sales and consumer awareness for products and services in the
marketplace. This help to increase profits and create position in retail industry (Schmidt, Spann
and Zeithammer, 2014).
Measure and Implement:

It is easier to gain budget approval next time around when company measures campaign.
Therefore, ADIDAS's needs to measure budget by following the different ways for marketing
campaign such as calculation of all the expenses such as website development, marketing plan,
social media utilization, other promotional tool for products and services in the marketplace.
After that, company can implement the budget for marketing campaign in the market. This
measurement and implementation of campaign of marketing to products and services in terms of
increasing consumer awareness and sales of business (Zeriti and et.al., 2014).
In this context, marketing manager of ADIDAS's use social media platforms like
Facebook as promotion tool for implementing the marketing campaign for achieving the
objectives of marketing of products and services. Therefore, they are followed different ways to
implement the marketing campaign such as:
 First of all, manager create account on Facebook as company name then providing the
informations about the products and services, its prices, company information etc.
 After that, they need to support team for handling this platform by which implement
marketing campaign.
 Company use this platform, because every person have mobile and Facebook account, so
that this is network is more beneficial for marketing of products and services (Kotler and
et.al., 2015).
 After looking marketing campaign, consumer will give feedback in both positive and
negative, any inquiry about products and services on Facebook.
 Therefore, manager and support team will look feedback and give reply in effective
manner.
In order to that, company implement marketing campaign on Facebook which is more
beneficial to business in relation to increase sales and consumer awareness for product and
services in the marketplace. After implementing the marketing campaign, ADIDAS should
improve current marketing strategies like pricing, promotion, distribution, targeting and sales
promotion strategies for increasing the sales and consumer awareness for products and services
in the market. This implementation help to improve competitive edge and creating the high
position in the retail industry. This aid to increase the profits and generate revenue as well as
growth of firm in the future time (Campbell, Ferraro and Sands, 2014).

Recommendation:
ADIDAS should creating the appropriate marketing plan in which they should determine
the marketing strategies, marketing mix, swot analysis for accomplishing the marketing
objectives which is increasing the awareness of consumers for products and services.
Conclusion
From the above, it can be concluded that effective marketing plan help to achieve the
marketing objectives and creating the higher position in the marketing place.
CONCLUSION
This report has summarized that comparison between marketing strategies of ADIDAS
and Tesco which involve product, pricing, promotion, distribution, sales promotion and targeting
strategies within their business in relation to competitive advantage. It can be concluded that
select demographic segment like age, income, gender, occupation, behavioural segment like life
style and psychographic segment like purchase and benefits sought for future growth of
company. Furthermore, it can be discussed that extended marketing mix such as product
portfolio, retail distribution, pricing strategies and promotion as increase brand image of
ADIDAS. It can be applied the Ansoff's Matrix framework and different strategies like joint
venture, franchisee, direct exporting and licensing for expanding business into international
market.
Moreover, study has completed that ADIDAS create marketing campaign for increasing
the consumer awareness for products and services of firm. It can be discussed that company has
selected social media for marketing campaign and improving current marketing strategy of
business.

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Online
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<http://www.quickmba.com/strategy/matrix/ansoff/>.