Introduction
Adidas is the most famous sportswear brand in the world. It is recognized for its innovative design, better quality product, and strong position in the global market. Adidas manufactures great varieties of sports apparel, footwear, and accessories for different types of sports including soccer, baseball, basketball, cricket, racing, and hockey. Adidas is famous for its special three-stripe logos, which symbolise athleticism and performance. Since its opening Adidas has been striving for unique innovations in sports technology by constantly developing new materials and designs to improve athletic performance. Adidas has also established partnerships with top-class players and teams worldwide, further strengthening its position as a leader in the industry.
History
In 1920 Adolf Dassler started making sports shoes in her mother’s laundry room in Herzogenaurach, Bavaria, Deutschland. Then he established a factory in his house and named “Gebrüder Dassler Schuhfabrik”.In 1924 his brother Rudolf Dessler joined his Factory. They mainly produce shoes for athletes. The shoe became popular among athletes due to its innovative design and focus on performance. After the Second World War, the relationship between two brothers Adolf and Rudolf disintegrated due to ownership of the factory and finally, Adolf Dassler got ownership of the company. In 1949 Adolf Dassler named this company his nickname Adi and the first three letters name of his last name. That is the official name of Adidas. Now Adidas headquarters is located in Herzogenaurach, Germany. There are some businesses of Adidas in different places like London, Paris, Toronto, Tokyo, Taiwan, and Madrid.
Logo
At present, there are 4 types of logos established by Adidas in the global market. Each logo is used for each purpose.
Three Stripe logo: This logo is used for the Sports Line. The performance and sports apparel line uses the three stripes along the side of shorts, jerseys, armbands, sock boats, etc. This is the most popular logo in Adidas. This logo was purchased in 1949.
Trefoil: This logo is used for Lifestyle and casual wear. This one is more popular with people outside the sports. Different types of models, actors, celebrities, and influencers are used for company promotion. This logo was launched in 1971.
The Mountain Logo: In 1990 the Adidas line converted to another iconic look from the trio, which is now used to perform the product. The stripes previously used were moved to gaslight corners, representing how the shoes looked. The trio stripes were drawn on a mountain Shape icon that represents an obstacle to cross.
Adidas NEO Circle: The NEO Circle logo is featured in the Adidas lifestyle collaboration. The circle logo still carries the three stripes but offers a different look to symbolize a daily wear line that is not focused more on practical wear. This logo was launched in 2005.
Funding:
Key information about Adidas funding and financials:
1)Revenue: Adidas is a publicly traded company and its revenue comes from various sources including the sale of footwear, apparel, and accessories. The company reports its financial results on a quarterly and annual basis. Some of the information is available on the internet, some are not available for company privacy.
2)Investor: Adidas has a diverse group of shareholders, including institutional investors, individual investors, and investment funds. some of the largest shareholders may include investment management firms, pension funds, and another financial institutes.
3)Stock Exchange: Adidas is listed on several stock exchanges, including the Frankfurt Stock Exchange in Germany, where its shares are traded under the ticker symbol ADS. The company’s stock performance and market capitalization can provide insight into its valuation and investor sentiment.
4)Funding for innovation: Adidas invests in research and development to drive innovation in its products and Technologies. The company may allocate funds for research, partnership, and acquisition to enhance its technological Capabilities and stay at the forefront of the industry.
Some of the major shareholders of Adidas:
1)Public investment fund of Saudi Arabia: PIF is a sovereign wealth fund and one of the largest shareholders of Adidas.
2)Groupe Bruxelles Lambert: GBL is an investment management holding company based in Belgium and holds a significant stake in Adidas.
3)Blackrock: Blackrock is a global investment management corporation and is one of the largest institutional investors in Adidas.
4)The capital group companies: The capital group is a financial service company and holds a substantial stake in Adidas.
5)Norges Bank Investment Management: NBIM is the asset management division of the Norwegian Central Bank and manages Norway’s sovereign wealth fund.it is also one of the major shareholders of Adidas.
Last few year Adidas company annual revenue statistics
Different type of marketing strategy in adidas
4P Marketing strategy(Product,Price,Place,Promotion)
Product:
➤Adidas has a great reputation for its athletic footwear and it is the second-largest sports shoe brand globally.
➤”Adidas Superstar” model shoes acclaimed for its basketball performance and casual appeal.
➤” Adidas Stan Smith” model shoes are a minimalist style and functional choice for tennis players.
➤”Adidas Samba” model shoes are very popular among soccer players, their stylish look and comfortability impressed the football player.
➤” Adidas Ultra Boost series” model shoes are an ideal running shoe for exceptional comfort and energy return.
Price
Adidas always try to competitive pricing for regular products, considering rivals like Nike,puma.
➤skimming pricing:This is a pricing strategy that sets new products accurately high and significantly lower than competitors entering the market.For cutting-edge items of adidas can be price fixed this procedure. Adidas always target highclass tolow class customer.
➤ premium prices:That means superior quality product contain premier level price.This type of product mainly produced for premium customer.
Place:
All over the world, Adidas has about 1900 official stores. Only the USA contains 198 official stores.Adidas uses online platforms like Amazon, Flipkart, Myntra, and its official website offering personalised merchandise options for global accessibility.
Promotion:
Adidas was established as a brand through strategic and extensive marketing efforts. The brand invests heavily in traditional billboards, TV, magazines, and social media advertising. Adidas collaborates with influential celebrities such as Kanye West, Beyonce, Lionel Messi, and Stella McCartney for endorsements, inking million-dollar contracts. Additionally, Adidas has built a notable reputation by sponsoring football teams like Germany, Mexico, Spain, and Argentina.
Sponsoring Sports Events and Athletes
Adidas has successfully partnered with renowned sports organisations and athletes globally. Adidas secures long-term contracts in the NBA, MLS, FIFA, and the Olympic Games. Adidas collaborations include being the official kit supplier for European famous football teams like Real Madrid Manchester United, and Bayern Munich
Journey of Adidas
Early stage:(1949-1960)
Primary stage Adidas started as a small family-owned business founded by Adolf Dassler in 1949 in Germany. Initially, the company focused on manufacturing athletic shoes, primarily soccer players. Adolf Dassler’s vision was to create innovative footwear that would enhance athletes’ performance. During its early years, Adidas focuses on quality and innovation. Adidas gained recognition for its high-quality products and innovative design. one of the key milestones for the company was when it provided the footwear for the German soccer team’s victory in the 1954 FIFA World Cup. This Success helped establish Adidas as a prominent brand in the sports industry.
Expansion(1970-1980)
Adidas Diversified its product range to include various sports categories beyond soccer such as basketball, running, and tennis. The company also expanded into clothing and accessories becoming a comprehensive sports lifestyle brand.
The brand gained significant popularity globally through endorsements from high-profile athletes and teams.
One of the key moments in the company’s history came in the 1970s when Adidas signed a contract to supply the German national soccer team with shoes. This was a huge win for the brand, as it helped to cement Adidas’ reputation as a leading supplier of athletic footwear. Adidas began to expand internationally, opening up offices and factories in other countries.
Globalisation(1990-2000)
Adidas underwent significant international expansion, capitalization, the growing demand for sportswear, and the globalization of sports. The acquisition of brands like Salomon Group in 1997 and Reebok in 2005 broadened Adida’s market presence and products.
Brand Revitalization (2010)
In early 2010, Adidas embarked on a strategy to revitalize its brand and product innovation. Collaboration with fashion designers, celebrities, and influencers helped rejuvenate the brand appeal, particularly among younger consumers. Adidas also intensified its focus on sustainability and ethical manufacturing processes.
Digital Transformation (2010-2020)
Like many other companies, Adidas embraced digital transformation to embrace customer engagement and streamline operations. Investments in e-commerce, mobile apps, and data analytics have allowed Adidas to better understand consumer preferences and adapt its marketing strategies accordingly.
Diversification and innovation:(ongoing)
In recent years Adidas has continued to diversify its product offering and invest in innovation. Initiatives such as the future craft line, which incorporates advanced materials and manufacturing techniques, demonstrate the company’s commitment to pushing the boundaries of sportswear design and technology.
At present Adidas sells their product in more than 160 countries, throughout nearly 1900 owned retail stores.15000 mono-branded franchise stores.150000 wholesale doors, and owned e-commerce that is available in 67 countries.
Adidas future plan
1)Sustainability: Adidas has been increasingly focusing on sustainability in its operation and product development. This trend is likely to continue with the company working towards reducing its environmental footprint, using eco-friendly materials, and implementing sustainable manufacturing practices.
2)Digital innovation: Like many companies, Adidas is expected to further invest in digital technologies to enhance customer experiences, streamline operations, and optimize supply management. This may include advancements in e-commerce platforms, mobile apps, and data analysis to better understand consumer behavior and performance.
3)Expansion in Emerging Markets: Adidas may continue to explore opportunities for growth in emerging markets, particularly in Asia where there is a growing middle class and increased demand for sportswear and lifestyle products.
4)Focus on health and wellness: With a growing global emphasis on health and wellness, Adidas may expand its product offering beyond traditional sportswear to include items catering to fitness, lifestyle, and athleisure trends. This could involve partnerships with fitness influencers, wellness brands, or technology companies to offer innovative products and services.
5)Innovation in Performance Apparel:. Adidas is likely to continue investing in research and development to create cutting-edge performance apparel and footwear. This could involve advancement in material science, Biomechanics, and data-driven design to enhance athletes’ performance and comfort.
6)Community Engagement and Social Impact: Adidas may increase its focus on corporate social responsibility initiatives, including community engagement, youth development programs, and initiatives to promote diversity and inclusion within the company and the broader sports industry.
Several potential future challenge:
1)Competition: The sports apparel industry is highly competitive with established players like Nike, Under Armour and newer entrants constantly vying for market share. Adidas will need to stay innovative and agile to maintain its competitive edge.
2)Changing consumer preferences: Consumer preferences and trends in fashion and sportswear can change rapidly. Adidas must continuously Anticipate and adapt to these shifts to ensure its products remain appealing to its target
3)Supply chain disruption: Events like natural disasters, Geopolitics, tension, or global health crises can disrupt shortages. Adidas needs robust contingency plans to mitigate these risks.
4)Sustainability and Ethics: There is increasing pressure on companies to adopt sustainable and ethical practices throughout their supply chains. Adidas will need to continue investing in sustainability initiatives, Ethical sourcing, and Transparent business practices to meet evolving consumer expectations and regular requirements.
5)Digital Transformation: The rise of e-commerce and digital technology is reshaping the retail landscape. Adidas must remain at the forefront of digital innovation to enhance its online shopping experience, Encourage customers through social media and digital marketing, and leverage data analytics to drive business decisions