Adidas is a major German sports apparel manufacturer, which was founded in 1948. It is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after Nike. The company’s clothing and shoe designs typically feature three parallel bars. The company revenue for 2009 was listed at ˆ10. 38 billion. The market segmentation; targeting and position play an important role in this company. This essay will use the three factors to analyze this company.
Market segmentation Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first identifies different way to segment the market and then develops profiles of the resulting market segments. As market consist of many buyers, they may differ in their wants, buying attitudes and buying practices, so a seller might design a separate market program for each buyer.
Adidas mainly focus on demographic and psychographic segmentation. So Adidas develops their brand in 3 different styles according to the segmentation. Demographic segmentation refers to dividing the market into groups based on demographic variables, such as sex and age, which this method has long been used in clothing market. They branded products into range of male, female and kids, according to age and life cycle segmentation and gender segmentation, after all they can have products that can fit to almost every demographic possible.
Adidas has a branded range of male and female clothing, shoes or body-care and eyewear, which all three brands of Adidas; Performance, Originals and Style also provide products for this segment. Ppsychographic segmentation was to dividing the market into groups based on social class, life style or personality characteristics. Adidas focus on social class because people within a given social class tend to have similar buying behavior. People interest in many goods is affected by their life style and many goods they buy are expressions of their lifestyle, people who loves outdoor activities and sporty style will tends to buy Adidas products.
By using personality variables to segment markets, giving their products personalities that correspond to consumer personalities. From the fundamental marketing concepts, it is important to satisfy customers need and meet their expectations, in orders to keep royal consumer. Adidas has did a successful job in this area, because many people who are experiencers and image drivers believes that Adidas provides products which are fashionable, good looking and can be functional too. So Adidas Originals was designed to focus on fashion and life-style.
Adidas segment customers like athletes, gym regulars, sports enthusiasts, brand freaks and image seekers. Adidas often have work with different athletes, which produce products that enhance performances. Adidas Performance currently manufactures several running shoes, football kit and associated equipment, being official outfitter of NBA, golf equipments, training and more other sports. Adidas also featured with Y-3 and Adidas NEO Label provided crossover products with different brands that customers who loves either brands would also attracted to buy their products.
Market targeting Market targeting is evaluating different market segments, a company must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. (Kotler et al 2010, p277) After evaluating different segments, Adidas adopts market coverage strategy which is differentiated marketing. For using this, Adidas decides to target several market segments, and separate offers for each. (Kotler et al 2010, p278)
Thus, the company of Adidas has three different types of product for ustomers, which are Performance, Originals and Style. Here is the table shows three sub-brands of Adidas. Brand of Adidas | Target market| Performance| the customers who like sports. it’s everywhere around the global where sports are simply played, watched, enjoyed and celebrated. | Originals| focuses on streetwear and lifestyle fasions. | Style| Y-3 targets a forward-thinking fashion consumer. SLVR is the smart fashion sportswear label within adidas Sport Style.
NEO label is targeted to appeal to the fashionable teen (12- to 16-year-old) who is fully engaged in life, be it through social networking, family, friends, outdoor or sporting activities. | (Adidas group 2009) Those brands allow Adidas to address multiple consumer needs, exploit market opportunities from various angles as well as be less affected by one-dimensional market risks. Considering each sub brand, it uses market coverage strategy which identifies as a market coverage strategy in which a company goes after a large share of one or a few submarket. Kotler et al 2010, p279)
For example, Adidas Orginal promotes classic style. It comprise the side collection of numbers of items such as sneakers, clothes, eyewear an watches. In addition, it promotes for different gender, also it targets on customers refer to their lifestyle, which are interest, hobbies and personality , for example, the people like skateboarding would like Adidas Original. adidas Originals with its Trefoil logo has become a relevant part of many people’s lives, whether they are skaters, rockers, artists, musicians, sneakerheads, sports fans and so on.
In 2011, Adidas Originals promotes a new line which is denim collection. Market positioning After the market segmentation and market targeting, the next step is market positioning, positioning played an important role for a company to get success and the definition of positioning is designing the company’s offering and image to the mind of buyer (Kotler et al, 2010 p. 280).
From the definition of positioning we can easily understand positioning is not what company do to the product, it’s what company do to the mind of consumer elative to competing products, therefore, company can through a valuable proposition, positioning provide the reasons for purchase in the mind of the customers.
Firstly, Adidas is a company focus on producing and selling sports goods, which include footwear, clothes and some sports equipment. Therefore, Adidas invested a lot of money to major sport events and major sports clubs around the world to promote and positioning the impression of the Adidas’s sports products as the world leading high quality and most popular sports producer.
In addition to using celebrity and well-known club to endorse products, Adidas also constantly using innovation of technique to improve the quality of product, and employ world’s best designers to make their products more popular. As a result, Adidas positioning their products more popular and high quality in consumers mind. Secondly, Adidas is now positioning their new products to be “faster”. For example, the new basketball boots “Dwight Howard Superbeast” which was represented by NBA basketball star Dwight Howard is the lightest professional basketball boots in basketball history.
This boots make the basketball players run much faster and make stronger move than wearing other shoes. (No author, July 2010) As well as football boots, the “F50” football boots that represented by the best footballer in this decade Leonardo Messi is one of the lightest football boots in the world. (No author, March 2010) Thirdly, relative to competitors such as Nike, Adidas is more focusing on basketball such as NBA, Adidas is the main provider of all home kits and away kits of 20 teams in NBA, this make Adidas the best producer of basketball wearing products in consumers’ mind.
In conclusion, Adidas has become a world leading producer of sports wear by positioning themselves as high quality, popular, and faster. Conclusion In conclusion, market segmentation, targeting and positioning, which are the three important factors in Adidas Company’s marketing. Market segmentation, you should focus on demographic and psychographic segmentation, Adidas can develop brand in 3 different styles, and it can result in get more profit from different style customer.
Adidas target on the customers who like sports, such as FIFA World Cup or the NBA All-Star Gam. It can be seen that Adidas have more chance in big money events; it can help the company improve brand equity and enhance the company target. Adidas positioning on sports goods is high quality and popular, it is very suitable for the younger. If Adidas Company fully to use market segmentation, targeting and positioning three steps, I believe that Adidas becomes the first brand in the world in the future.
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