Comprehensive Global Marketing Strategy for Adidas

The case study examines Adidas' strategic approach to global marketing by analyzing its target market segmentation through demographic and psychographic methods. It discusses the company's comprehensive marketing mix, including product line strategies, competitive pricing, distribution channels, and promotional activities utilizing a 360 branding strategy. A detailed PESTLE analysis is provided, highlighting political, economic, social, technological, environmental, and legal factors impacting Adidas. Recommendations include diversifying products by opening gyms and stadiums, outsourcing human resources to reduce costs, and developing a mobile app to boost personalized shopping experiences.

Running head: GLOBAL MARKETING
Global Marketing

GLOBAL MARKETING 1
TO: Senior Marketing Manager
FROM: Marketing Executive
DATE: November 26, 2017
RE: Global Marketing
Adidas is a German multinational corporation and they are in the manufacturing of sports
accessories and clothes. Taylor Made-Adidas company, Rockport, golf company (including
Ashworth), and Reebok sportswear company are involved in the group Adidas.
Target market
A target market involves those organizations or consumers who will regularly avail the products
and services of the company. Because demand of the consumer and offering of the company are
same so it makes obvious for company to give maximum attention to these consumers.
Demographic and psychographic are the two segments that grab the attention of Adidas.
Therefore Adidas design its brand in 3 styles depend upon the segmentation. Dividing the market
into different groups according to the demographic variables like age and sex is known as
Demographic segmentation. Adidas design their products according to the age and gender
segmentation for kids, male and female.
Marketing Mix
Product- Adidas product strategy in marketing mix involve complete product line across
numerous sports and types. Sports-wear and sports bags are also sold by Adidas to its customers.
Price- Adidas is known for its promotions, styles, and designs of their products and due to that
they use competitive pricing as well as skipping prices strategy. Competitive pricing strategy is
used by Adidas so that they can give pricing competition to their competitors and they use
skimming price strategy for its newly introduced products with unique design in the market
(Bhasin, 2017).

GLOBAL MARKETING 2
Place- Adidas Company prefers selling their products through their own retail outlets. In the
retail outlets of Adidas, the products are delivered directly from their manufacturing sites. With
this, the products of Adidas are also sold by different showrooms and distributor of Adidas
deliver products to these showrooms.
Promotion- Adidas take help of media to promote its products. Promotional strategy in marketing
mix 360 branding strategy of promotion is used by Adidas that shelters all features of
communication and media.
Source [https://www.slideshare.net/102brandstrategy/adidas-brand-extensionabhinav-
goyalpgp30416]
Promotional mix
Personal selling- Personal selling is the one to one communication between seller and buyer.
Customers drop their contact details at the Adidas promotional activity, with the help of that
detail Adidas telemarketers call that customers to sell the product.
Direct marketing- Soccer players, runners and other athletes are the target group of Adidas.
Adidas conducts its direct marketing through emails or mail.

GLOBAL MARKETING 3
Advertising- Advertising is the important aspect of the promotional mic as it helps in building
brand image in the market. Advertising is used by the company as it reaches a maximum number
of audience.
Public relation- Public relation helps Adidas to create their positive image in the market and in
the eyes of their target audience.
Pestle analysis
Political factors- Adidas look after for the political factors as it faces various risk and civil
conflict and incredible variations in trade policies.
Economic factors- Revenue and profit of Adidas Company is affected by the economic factors
such as inflation, per capita income, taxation, and unemployment.
Social factors- Adidas produce products of unique design and produce those products that can be
used by any religion, raise age and lifestyle. Their main focus is on sports lover and athletes.
Technological factors- Adidas use advanced technologies that make other companies as their
competitors and also increases their production by saving energy, time and efforts.
Adidas; 6%
Nike; 7%
Puma; 2%
Columbia; 2%
Others; 83%
Global Market share

GLOBAL MARKETING 4
Environmental factors- All the manufacturing units of Adidas does not produce products that are
restricted. It helps in reducing the emissions of unstable and organic compounds.
Legal factors- Adidas should be aware of all legal measures. Advertising standards, trade
description Act, television commission, press complaint are the legal acts (Haseeb, 2017).
Recommendations
Diversification- Adidas should diversify their product line. They can open their own gym and
stadiums as these are the places where people wear Adidas products. It will help them to increase
their market share and profit. The sales of Adidas in the year of 2016 was € 19.3 billion, if they
follow diversification then there will be 10% increase in their sales.
Outsourced human resources- Adidas outsourced 93% of products from Asian manufacturer.
Adidas should outsource human resources to countries where it is operating apart from Germany
and Europe. It will reduce the expenses of transportation, labor cost, along with this it will
reduce risk and dependency on the Asian market.
Mobile Application- Adidas should create its own mobile application on which they can sell their
products with this they can invite other companies of related product to sell their products too.
According to the report of 2015, there is 81% increment in the personalized shopping
application.

GLOBAL MARKETING 5
References
Bhasin, H. (2017). Marketing Mix of Adidas. Retrieved from:
https://www.marketing91.com/marketing-mix-adidas/
Haseeb. (2017). Pestle analysis of Adidas. Retrieved from: http://marketingdawn.com/pestle-
analysis-of-adidas/