Adidas: Strategic Management and Marketing Plan Analysis Report

This report presents a comprehensive analysis of Adidas' strategic management and marketing plan. It begins with an executive summary outlining the report's focus on Adidas' market strategies, sales, profit, and product strategies. The report then delves into Adidas' marketing goals and objectives, sales, profit, pricing, and product objectives. It includes extensive market research, covering market size, growth of the sportswear industry, Adidas' sales performance, and sales trends. The analysis extends to target customers, competitors, and the 7Ps of marketing. Furthermore, the report provides a detailed overview of Adidas' financial information and concludes with an assessment of the company's performance and marketing mix. The report highlights Adidas' market position, competitive advantages, and strategies for sustainable growth in the competitive sportswear market.

Running head: STRATEGIC MANAGEMENT AND MARKETING
Strategic Management and Marketing
Name of the Student
Name of the university
Author note

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Executive Summary
The report is based on the analysis of the different strategies and goals of the market of
Adidas. The different strategies namely sales, profit, product strategies have been provided
with proper importance as this helps in analysis of the competitive market. Adidas is one of
the leading brands and the growth of sales of Adidas has increased to a huge extent.
The main aim and purpose of the report is to properly analyze the target customers along with
competitors of the Adidas Company and this will help in understanding along with
identification of the different financial growth of the company as well. The proper depiction
of the sales and profit is essential in nature as this will help in analyzing the marketing mix of
Adidas.
The conclusion will be based on the financial performance of the company along with the
different marketing mix of Adidas. The marketing mix has to be properly analyzed as this
will help in understanding the tactics of the marketing that is required to be competent in
nature in the entire market that is competitive in nature.

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Table of Contents
1. Introduction............................................................................................................................3
2. Marketing goals and objectives.............................................................................................3
3. Market Research.....................................................................................................................6
3.1 Size of market of Adidas..................................................................................................6
3.2 Market Growth of Sportswear Industry...........................................................................6
3.3 Performance of sales of Adidas........................................................................................7
3.4 Trend of sales of Adidas..................................................................................................8
3.6 Demographics..................................................................................................................9
4. Analysis of target customers and Competitors.....................................................................10
5. 7Ps of marketing of Adidas..................................................................................................11
6. Financial Information of Adidas..........................................................................................15
7. Conclusion............................................................................................................................18
References................................................................................................................................20
Appendix:.................................................................................................................................24
Appendix 2:..............................................................................................................................25
Appendix 4:..............................................................................................................................27

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1. Introduction
Marketing is one of the vital and necessary aspect of the business. To ensure the
profitability in the m market through the successful selling of the products to the consumers
the marketing is considered to be the key tool. Marketing can be defined as the management
process which conceptualizes the transfers of the products and services to the customers. The
marketing of any product is necessary for sustaining the products in the market in terms of
acceptancy of the same by the consumers. In addition, the marketing helps the company to
understand the target market along with the demand trends of the consumers. Therefore,
marketing activities are considered to be the primary tools of the business. On the other hand,
the marketing includes various activities from the market research to the promotion of the
products. It needs to be mentioned that the marketing of the products and service is based on
the strategies which enables the company to ensure the effective establishment of the
products as well as the brand for successful business activities. The following report is
concerned with the marketing plan of Adidas in the target as well as global market. Along
with this, the following report also discusses the market research of the sportswear industry in
terms of identifying the position of Adidas in the international market. Therefore, the
structure of the report includes the complete company information with the necessary
information for the marketing activities of the same in the competitive market.
2. Marketing goals and objectives
The marketing objective of Adidas is that it is a global brand in the industry of sports
good wherein the strategic objective is to increase the share of market as to be the leader of
the market. On the other hand, the financial objective of Adidas is to decrease the cost by
10% and improving the sustainability of the performance of the entire company as this will

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increase the net income annually by 15% (Guo et al., 2013). The basic objectives of Adidas
are:
To ensure cost competitiveness
To-provide industry leading availability
To enable late ordering
To moderate the company infrastructure
To increase the brand awards within the women for sports accessories
To expand athletic identity of Adidas
The goal of Adidas Company is to create a supply chain that will be flexible in nature
and this will help them in maximizing the operational as well as financial performance of the
company. Proper identification of the marketing goals of Adidas along with the set of
objectives of marketing of Adidas is as follows:
Sales objective is to deliver proper profitable growth of share of the market and
become the leading sales companies in the industry of sports goods. The strategy is to
properly establish proper relationships with the retailers who are leading in nature by
offering the target customers by offering tailored and best services (Floh et al., 2014).
In the retail market this will become the top retailers in the competitive market and
this will help in delivering healthy as well as growth that are sustainable in nature as
well. In the e commerce section, Adidas will establish properly sales that will be
based on internet and the strategy is relating to the attracting, retaining the different
customers by building proper capabilities of the e-commerce (Han et al., 2014).
Profit objective is the second objective of Adidas wherein they will help in delivering
best services to the customers that will be help them in decreasing the cost of the
products by 10% and this will help them in expanding the business and targeting the

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customers in order to properly secure the long term success and growth that is
sustainable in nature. Proper competitive advantage has to be gained by Adidas as this
will help them in maintaining proper sustainability in the entire market. The profit is
the main motive of all the companies in the competitive market wherein Adidas is the
one company wherein they have gained proper customer base with proper
implementation of different strategies as well as proper effectiveness and efficiency in
the usage of the different technologies that are used by them.
Pricing objective is the other objective as this will help in ensuring proper
competitiveness in the cost of the various sport goods. This will help in providing and
enabling modernization of the infrastructure. The strategies that will be used by
Adidas are to allow the customers in reducing the supply and product chain costs.
Adidas has to allow the customers to order different kinds of product closer at the
time of sale by building proper infrastructure along with different systems as well as
processes as this will support the growth of the organization. Adidas company has
kept the pricing in such a way that it will help the company along with the customers
in providing proper services to the customers (Kormann et al., 2016).
Product objective is essential in nature for Adidas as this will help in maintaining
proper sustainable growth as this will help them in providing the target customers the
different kinds of brands that are desired by them. The products that will be delivered
by Adidas have to be different from the competitor and this will help them in
providing good image of their products in the competitive market. Proper evaluation
of the competitors in the market is essential to be done by Adidas as this will help in
maintaining proper sustainability along with being aware about the goals of the
competitors (Perreault Jr, Cannon & McCarthy, 2013).

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3. Market Research
3.1 Size of market of Adidas
The market size of Adidas is the largest manufacturer of sportswear in Europe as well
as the second largest in the entire world. The employment level of Adidas is approximately
60000 employees worldwide in the year 2016. The net sales of the entire Adidas group are
amounted to 20 billion Euros in the year 2016 as well. The size of the market of Adidas is
more than 25 billion Euros whereas the total market size of the sports industry is 90.9 billion
Euros and the rate of growth in the market of Adidas is 15% (Mahdi et al., 2015).
Figure 1: Sportswear market share
3.2 Market Growth of Sportswear Industry
The market growth for sports and fitness industry is expected to reach US$231.7
billion by the end of 2024 as estimated by Global Industry Analysts. This growth can be
attributed to the change of perception of a large segment of the population. The people are
now living a healthier life style with increased participation in sports and fitness activities. It

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is assumed in the report that the Asia-Pacific region will reflect the fastest growth in the
international market with a CAGR of 6.9% over the above stated period. The 2016 report
reflects a registered growth of 10% and 6% respectively in the sports inspired footwear and
apparel. However, the performance sportswear holds the top position in the industry in terms
of market size with a market value of US$78 billion in 2016 (businessinsider.com (2017).
3.3 Performance of sales of Adidas
In the year 2016, Adidas has improved the desirability of the brands as well as
different products around the globe. As a result of this, Adidas has been able to increase the
revenues strongly and this helped them in achieving net income that is more than I billion
Euro for the first time in the entire history. The developments and the sales performance in
the financial year of 2016 are as follows:
The sales amount has reached 198 billion Euro wherein up to 18% on the neutral basis
of the currency (Sackner & Inman, 2016)
The operating margin improves from 1.3pp to 7%
The net income from the operations continuing climbs and hikes from 41% to 1.019
billion (Cross, Belich & Rudelius, 2015)
Management will help in proposing dividend of 2.00 per share Euro

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Figure 2: Analysis of market size of Adidas and Nike
(Source: Dolnicar et al., 2014)
Considering the fact of performance of the sportswear industry in the global market it is
found that the Adidas is leading in the second position in the fiscal year 2017. The total brad
value of the company is 7.9 billion U.S Dollars whereas Nike is leading the industry with
29.6 billion U.S Dollar brand value in the global market (Appendix 4). The awareness within
the people regarding the sportswear is increasing gradually, which is leading the sportswear
industry to expand the market in the global context. For example, the brand Nike has been
showing remarkable growth in its sales and business as the leading company of the
sportswear industry. On the other hand, Adidas is lacking the strategic growth unlike Nike.
3.4 Trend of sales of Adidas
The trend of sales of Adidas has increased in the last few years specially in the year
2014 and the sales has reached a limit of more than 19 billion Euro that is a huge hike in the
year 2015 and 2016 wherein in comparison to the other brands, Adidas has stood first and in
regards with the category of the different products namely apparel, footwear as well as
hardware, Adidas has scored the highest as well (Venter, Wright & Dibb, 2015). There has

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been huge increase in the number of employees as well in Adidas as the employees in the
year 2012 was 46,306 but in the year 2016 there has been huge rise in the number of
employees to 60,617 employees (Turner, 2015).
Figure 3: Financial Performance of Adidas in last few years
(Source: Dolnicar & Ring, 2014)
Adidas has been able to create proper competitive advantage in the competitive
market and they have been able to create a proper brand image in the minds of the target
customers as well. The social trend that has been created by Adidas has gained lot more
publicity than other brands such as Nike and Puma. Adidas basically focuses on the trends of
the customers that is followed by them as this helps them in creating proper value of their
brand.
3.6 Demographics
The segmentation of the demographics helps in dividing the entire market into the
basis of the group that is based on different variables like age as well as sex. Adidas has

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branded male range along with the clothing of female, shoes, body care along with eye care
as well. The originals, performance and style help in providing different products for the
particular segment. The psychographic segmentation helped Adidas into dividing the entire
market into different groups that are based on social life as well as the characteristics of
personality.
Adidas generally focuses on the social class of individuals as the people within the
social class have same kind of pattern of behavior. Adidas uses the strategies of user as well
as benefit based strategies that will help in creating distinctive image in the minds of the
customers. By properly providing value to the product quality Adidas is being able to
maintain proper essence of the brand over the customers who are the target customer of
Adidas (Baker & Saren, 2016).
4. Analysis of target customers and Competitors
The main audiences who are the target audiences of Adidas is of the age of around 15-
30 years old who are involved in any kind of discipline of sports. Adidas is one of the leading
brands who prepare high quality and high end products for different sports and this will help
in making the audiences’ interest about the different sports products at an affordable rate
(Rudolph, 2016). Along with the audiences, there is smaller audience those who are not into
sports but they shop in Adidas due to the logo and the brand name of Adidas and they
purchase such shoes for the fashion statement as well. These are the individuals who are
between the age group of 17-25 years of age both males and females of the middle class
families. The target audiences of Adidas is more than Nike as the varieties of clothing along
with accessories are more than in Nike and this attracts large group of individuals as well
(Murti & Sugiarto, 2014).

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The targeted group of Adidas come from upper middle class, middle class as well as
the upper class family wherein the monthly income of the individuals should be more than
20,000 at least and the target audiences are the youngsters as well as the middle aged
individuals who wear such Adidas shoes or other clothes for brand image and the big logo of
Adidas as well.
5. 7Ps of marketing of Adidas
A proper mixture of the different plans as well as ideas that is followed by the
representative of marketing as this will help Adidas in promoting proper brand or product that
is defined as the marketing mix. The proper analysis of the marketing mix of Adidas helps in
elaborating the different pricing, distribution as well as the advertising strategies of the
products and services that has been used by the respective company (Robusti, 2017). Adidas
has to properly analyze the different issues or the threats along with opportunities of the
company as this will help the respective company in satisfying the demands of the customers
along with providing them proper services in the future as well (Cordón, Leleux & Lennox,
2017). There are different elements of the marketing mix of Adidas that are described as
follows:
Product wherein the core benefit is to satisfy the wants as well as needs of the
customers and this will help in catering the different needs of the consumers as well.
Adidas will uphold the brand name by constantly improving as well as upgrading the
innovative features along with the quality to satisfy the wants of the customers. At
present the women sportswear are trending in the global market. From the market
research of the sportswear it is found that the trends of the women sportswear are
increasing. Women around the globe are increasingly demanding the sportswear.
Therefore, the marketing plan of the chosen company needs to focus on the trending