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Post 13: Promotion

It is without a doubt that marketing and advertisement in today’s day and age requires the use of a social media platform. Instagram, Twitter, Facebook, and YouTube, just to name a few, cannot be neglected in order to spread a brand’s awareness. In the past few years, Adidas has embraced the digital age and has invested a lot of its advertising efforts into the media platform. Though tools such as prints, billboards, posters, and flyers are still visible today, it is without a doubt that Adidas’ presence in social media has a far more effective outcome. However, before we can analyze this trend we must first pay homage to the traditional form of advertising- the paper age so to speak.

Adidas physical ads (in the form of billboards and banners) are still being utilized today and they play a huge roll in the company’s mass media channels. Though it is not as common as it was a decade ago, you can catch a glimpse of the Three-Stripes logo at sports arenas for basketball, football, and soccer especially. Adidas billboards are visible as well, particularly in big metropolitan cities around the world such as New York City, Portland, Las Vegas, Singapore, Berlin, and Beijing to name a few. Although most of us prefer staring into a five-inch phone screen, these Adidas billboards are designed in a very appealing manner and will attract your eyes regardless. With images of famous athletes (i.e. Damian Lillard, Jeremy Lin, David Beckham, Mohammed Ali, and Lionel Messi) and inspirational quotes like “Impossible is Nothing”, “Never Doubt”, and “All in or Nothing”, it is difficult to not be stimulated by these billboards. Needless to say, the Adidas billboards are still impressive and gratify towards consumers’ emotional appeal. As a result, this form of advertisement serves a purpose and should remain displayed under city lights around the world.

In contrast, Adidas’ main advertising strategy relies on the use of its niche media platform- the social media. Adidas, like many of us, is very active on Instagram, Facebook, Twitter, and YouTube- and chances are you probably have seen at least one Adidas ad through any one of these channels. Through its original, influential, and aesthetically pleasing content, Adidas is able to capture its audience attention and more importantly, create conversions. In fact, Adidas has decided to terminate television advertisement altogether and concentrate its efforts on to the digital media platform. Adidas chief executive “explained [that] the company is looking to boost its e-commerce revenues from $1.06 billion in 2016 to $4.25 billion by 2020 — and Adidas wants to use digital channels to get there”1. When looking at the numbers, it’s no brainer that digital marketing is the future of this company.

Adidas’ presence in social media is undoubtedly large. Adidas has a multitude collection channels/profiles from individual sports like skateboarding, swim, hockey, football, and running), countries and cities including NYC, Mexico, Indonesia, Panama, and Paris, to other directories such as help and alerts, and not to mention their original profile @Adidas. On Twitter, @Adidas has 3.42 million followers, on Instagram with 19.6 million, and Facebook with 33 million likes. When looking at this data, promoting brand awareness doesn’t seem to be a problem.

However, Adidas’ best form of advertising relies on the mixture of persuasive advertising and social marketing. Through numerous ad campaigns that include video, short films, and online hashtags, Adidas has created some of the best advertisement to date. One of the most effective campaigns is that of the Adidas Originals Stan Smith. The campaign, which started in December 2013, was aimed to re-launch the iconic Stan Smith sneakers. Adidas did so by releasing a short video that documented and interviewed the legend himself, Stan Smith, along with celebrity cameos (i.e. Will Arnett, Andrew Garfield, Andy Murray, and Max Greenfield). The video became viral and as a result, sales of the Stan Smith increased significantly with upward to 50 million pairs being sold and counting. But the fun doesn’t stop there. In the past few years, Adidas has launched numerous campaigns, such as the “Never Follow” (highlighting the idea of originality), “#MyGirls” (promoting inclusion and equality for women athletes and individuals alike), “Calling All Creators” (the company’s invitation for consumer to channel their creativity into Adidas’ endless opportunities), and “Original Is Never Finished” (a call to arms against complacency for the generations to come). Though the message in itself is inspirational, it doesn’t hurt to include big-name celebrities and athletes in these campaigns- names such as Nick Young, James Harden, David Beckham, Dua Lipa, Paul Pogba, Pharrell Williams, Candace Parker, Karlie Kloss, A$AP Ferg, and Tracy McGrady just to name a few.

By taking advantage of these multiple channels, Adidas as a company will continue to grow. With campaigns and advertisements that carry a strong emotional and persuasive appeal, it is no wonder that everyone wants to own a pair of Adidas. Additionally, by targeting numerous market segments from sports to fashion/lifestyle, Adidas has mastered the basis of a unique selling proposition- highlighting the exclusivity and uniqueness of each product in accordance with its audience. If Adidas continues at this rate, the company will never have to resort to personal selling ever again as they are on the way to become the leading sportswear manufacturer in the world.

References: 

1 O'Reilly, L. (2017, March 16). Adidas says it's ditching TV advertising. Retrieved April 26, 2018, from http://www.businessinsider.com/adidas-says-its-ditching-tv-advertising-because-young-people-engage-with-the-brand-on-mobile-2017-3

Flammia, C. (2017, December 20). Adidas Taps Every Famous Person Ever for Its New Campaign. Retrieved April 26, 2018, from https://www.esquire.com/style/mens-fashion/a14472979/adidas-calling-all-creators/

Montes, P. (2018, January 26). Adidas Originals Drops Star-Studded 'Original Is Never Finished 2018' Campaign Video. Retrieved April 26, 2018, from https://hypebeast.com/2018/1/adidas-originals-original-is-never-finished-2018-campaign-video

Sandison, D. (2016, October 20). Adidas Is Trying to Take Over the Sneaker World Through Social Media. Retrieved April 26, 2018, from http://www.complex.com/sneakers/2016/07/adidas-is-trying-to-take-over-the-sneaker-world-through-social-media

https://www.youtube.com/

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Post 12: Place (Distribution)

Adidas products are available everywhere. In terms of retailing, Adidas seems to practice an intensive distribution strategy approach. In other words, you can find Adidas merchandise nearly everywhere, from department stores like Macy’s and Nordstrom, to warehouse clubs like Costco, and off-price retailer like Burlington and Ross, and even footwear specialty stores like Kith and Stadium Goods in New York. Additionally, with the introduction of the Internet, Adidas has expanded its retail store beyond a brick-and-mortar. It was reported that Adidas’ online sales in 2015 surpassed its goal by over $100 million (about a 40% increase); it’s no surprise considering some of their products are only available exclusively online (i.e. any of the Yeezy collection). 

Additionally, Adidas has launched a mobile app that is personal in nature. By utilizing specific algorithms Adidas is able to observe and learn about consumer purchasing behavior, likes and dislikes, and personal profile. All of which, will help in creating a personalized app for each individual user. Furthermore, the app will provide newsfeed, special promotions, exclusive release dates of new products, a customer support directory, and an online store. The app aims to increase Adidas’ online sales, stating “[a] goal of reaching $4.6 billion in online sales from its own platforms by 2020”1. By providing its products via the Internet, through both its online retail store and its mobile commerce, Adidas is able to expand its distribution intensity via an omnichannel marketing strategy. 

According to Statista.com, Adidas is currently operating a whopping 1,557 concept stores, 895 outlet stores, and 136 smaller concession stores. Considering the intensity of its distribution, it’s no wonder that Adidas’ sales figures have increased to $24billion in 2017. However, despite its intensive distribution strategy, Adidas practices a selective distribution approach as well. With the opening of a few flagship stores in major cities such as New York City, Chicago, Los Angeles, and London, Adidas promotes a vision of glamour, luxury, and style towards the metropolitan audience. These stores are massive, with the Chicago store expanding five thousand square feet and the NYC store is 45,000 square feet and four stories high. Though the store in itself feels more like an interactive museum than a retailer store, Adidas is able to uphold a strong perceived value of its brand. 

The Adidas flagship stores are an experience in itself. It provides customers with a sense of wonderment, entertainment, and exclusivity. Each flagship store is different in design and aesthetic, utilizing influences of the subculture of that particular region. With the addition of perfectly organized displays, interactive areas (i.e. a miniature soccer field, basketball court, treadmills, and a running track), framed photography, computer touch-screens to design your own custom shoes, bleachers and leather couches, and an entrance design to mimic a stadium entrance, Adidas is able to add value to its brand. Furthermore, Adidas promotes exclusive products that are only available at these flagship stores, such as the limited release of the EQT Support ADV Wicker Park shoes that are only available at Chicago flagship store. 

Whether Adidas distributes its product via off-priced retailers, eCommerce, or the newly designed specialty stores one thing is for sure, Adidas is having a phenomenal year. The numbers speak for itself as sales continuously increase. Though Adidas is ranked as the second largest sportswear manufacturer, falling behind Nike, their marketing and distribution strategy should be regarded a successful model for other companies to follow. 

References: 

1 Green, D. (2017, November 06). Adidas just launched a new shopping app that learns what you like. Retrieved April 26, 2018, from http://www.businessinsider.com/new-adidas-app-download-2017-11 

Gorsler, F. (2018, April 26). Adidas Sales Figures Jumped Almost 20 Percent in 2017. Retrieved from https://www.highsnobiety.com/p/adidas-sales-2017-rise/ 

Matousek, M. (2018, February 06). We visited the flagship stores of Nike and Adidas in New York City to see which does it better - and the winner was obvious. Retrieved April 26, 2018, from http://www.businessinsider.com/nike-vs-adidas-flagship-store-pictures-details-2018-2#i-went-to-adidas-fifth-avenue-store-next-adidas-opened-the-45000-square-foot-store-in-december-2016-11 

Verry, P. (2017, October 05). Adidas Originals' Largest Store Ever Is Now Open in Chicago. Retrieved April 26, 2018, from http://footwearnews.com/2017/focus/athletic-outdoor/adidas-store-chicago-440985/ https://www.statista.com/

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Post 11: Trends/Pricing

TRENDS: 

With the release of social media platforms, mainly that of Instagram, Facebook, and Snapchat, there has been an increase in exposure. What do I mean by that? With social media being almost a necessity in today’s culture everything is nearly being broadcasted through our mobile devices. In this day and age, we are consumed by social media content- whether we are following the news, a celebrity, or even a social trend. However, one of the biggest trends to appear in consequence to the introduction of social media is the fitness and healthy living lifestyle. Chances are within the past week you have stumbled upon a fitness related post, and if not, you’re about to within the next few days. However, the point I’m making here is that the fitness culture has opened a huge door for sports-related companies worldwide- Adidas being one of them.

This continuously evolving market segment provides Adidas with a clear opportunity in the marketplace. By creating apparel that appeals to this segment, the company has been able to increase its sales by a huge margin. In fact, it was reported that by 2017, Adidas’ sales increased by nearly 20%, upward to $24 billion. Adidas’ North America president, Mark King, stated that the company “decided to put a lot of energy, resources and investments in the North American marketplace — focusing on key cities [like] New York and Los Angeles — which set the trends for young consumers.”1 This decision has clearly proven to be worthwhile. Major cities like Los Angeles is the epicenter of a generational cohort, mainly that of the millennials and Generation Z (digital natives), that contribute greatly towards this new age fitness trend. When scrolling through our Instagram feed, it is hard to miss a fitness model sporting, promoting, or reviewing an Adidas product. These social media celebrities have evidently become the reference group for the younger generation. Understanding that this group holds a huge influence over the general consumer, Adidas should sponsor these individuals similar to sponsoring a famous athlete. By doing so, Adidas will be able to obtain a new market segment- one that is influenced by Instagram and/or YouTube stars. 

Additionally, by combining products that provide functionality and appeal, Adidas has allowed fitness enthusiast to wear the Adidas apparel both in and outside of the gym. With the recent release of the Boost technology, the Yeezy, and an array of an athletic leisure clothing line, Adidas has amplified the fitness subculture- creating a trendy athletic fashion trend. This fashion trend is blatantly obvious in today’s society- from nurses and doctors wearing the Adidas UltraBoost in the hospital to a magazine model sporting a dress suit with a white Adidas Originals Stan Smith sneaker. Whether we follow or disapprove, what is clear is that Adidas is taking advantage of the current and ever-evolving trend, creating products that appeal to multiple demographics and market segments. Though fashion and appeal is the drive in fulfilling the consumers’ psychological and esteem need, Adidas remains true to its athletic concept focusing on functionality and performance above all else. 

PRICE: 

It is difficult to discuss Adidas’ pricing strategy, mainly because that is private information withheld by the company- I mean do you really want to know the cost of producing a pair of $200 UltraBoost shoes? Probably not. Pricing strategy should be left to the marketing professionals, so long as the prices of the products we want are not excessively high, we will still have the desire to purchase these goods. Nonetheless, we can observe Adidas’ pricing trends to come up with a logical theory. 

In the past couple of years, Adidas has had an astronomical growth. It was reported, “Adidas’s overall sneaker sales jumped an eye-popping 80% in 2016, while its stock price has jumped 67% in the past year alone.”2 A huge aspect of this success relies on the close connection Adidas associate itself with pop-culture and media. Their marketing targets fashion, athletic, and musical icons like Madonna, Kanye West, James Harden, and Yohji Yamamoto to name a few. Though it’s quite obvious that Adidas has a good grasp of today’s cultural trends to market its products, Adidas also utilizes a customer-orientation approach to pricing. Simply put, the consumers ultimately influence Adidas’ product pricing. By releasing high-luxury sneakers like the Yeezy and the NMD in limited quantities, Adidas adds value to its brand as a whole. Subsequently, with an increase in perceived value, there is a definite increase in demand. When looking at the Yeezy Boost, the demand for the shoes was undoubtedly high and as a result, Adidas can manipulate its price point in accordance to that demand- is the Yeezy worth the $200 MSRP price tag? It seems so, as each online release of the shoes always sells out within minutes. 

In relation to a customer-based approach, Adidas also exemplifies a competitor orientation pricing strategy. It is without a doubt that Nike has and remains to be Adidas’ key competitor. When comparing the two companies’ products and pricing side by side, it is clear to see that there is a distinct pattern. A similar pair of shoes, apparel, and equipment is priced in comparison to one another. For example, the Adidas UltraBoost compared to Nike’s Epic React Flyknit are similar in functionality and design (minus certain colors). However, when analyzing their price tag, the UltraBoost starts at $180 while the Nike Epic React is priced at $150. Similarly, Adidas and Nike’s running tights have an MSRP price average of $60. When comparing the two brands, it seems that Adidas practices the use of a competitive parity in pricing. Both companies will sell their high-end/luxury products (i.e. Adidas’ Yeezy Boost 350 and Nike’s Air VaporMax Flyknit) with an MSRP of $150 or higher, while apparel for both can be priced as low as $20. 

Despite the similar price points, both companies provide products that are distinctively unique respectively. As a result, factors such as the substitution effect do not influence the demand curve of these products. Because the Originals Stan Smith can only be purchased through Adidas and the Huarache from Nike, the demand for these specific products will remain to be high, allowing each company to priced these items according to the quantity demanded and produced. This, in turn, will affect the price elasticity of demand. In short, in the attempt to set an effective pricing point for its products, Adidas cannot neglect components of its consumers’ interests, its competitors, well as the trend within the marketplace. 

References: 

1 McDonald, S. (2018, February 28). Adidas Sales Grew to More Than $24 Billion in 2017, Says CEO. Retrieved April 25, 2018, from http://footwearnews.com/2018/focus/athletic-outdoor/adidas-sales-2017-earnings-q4-ceo-kasper-rorsted-508729/ 

2 Woolf, J. (2017, April 27). Adidas Tells Us How It Plans to Catch Nike. Retrieved April 25, 2018, from https://www.gq.com/story/adidas-tells-us-how-it-plans-to-catch-nike 

Archer, S. (2017, November 15). Nike and Adidas have entirely different ideas of how to take over the US (NKE) | Markets Insider. Retrieved April 25, 2018, from http://markets.businessinsider.com/news/stocks/nike-adidas-stock-price-are-trying-opposite-strategies-to-take-over-the-us-market-2017-11-1008176312 

Schlossberg, M. (2016, April 17). Instagram is spurring the biggest shift the fitness world has seen in decades. Retrieved April 25, 2018, from http://www.businessinsider.com/instagram-and-the-fitness-world-2016-4

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Post 10: Services

As we all know, Adidas’ main business is the selling of their goods, in the form of tangible products that range from shoes, apparel, and sports equipment. However, Adidas’ target audience is not only that for the direct consumer (as in business-to-consumer [B2C] marketing), but also with other businesses (business-to-business [B2B] marketing). Adidas has worked with organizations such as the 2012 London Olympics and college sports teams (i.e. Rutgers Scarlet Knight, Texas A&M Aggies, and Mississippi State Bulldogs), providing these athletes with uniforms, footwear, and apparel.

Though it is important to mention Adidas’ products, we cannot perform a deep analysis of it, since there are simply too many products to account for. Instead, this blog post will discuss the company’s service that may be overlooked- customer support.

Let us begin with their website directory. On Adidas.com, the company provides consumers with online customer support care that can be contacted online (via chat) from 8 am to 11 pm EST, seven days a week. Additionally, Adidas has “advisors” that can assist you with product questions, concerns, and complaints via telephone from 8 am to 10 pm EST. As if that’s not sufficient enough, Adidas allows their customers to use social media platforms to voice their opinions through Facebook and Twitter, in which it will be directed to the Adidas support team. By providing numerous outlets for direct communication between the company and its consumers, Adidas hopes to increase its service quality while simultaneously decreasing the service gap (a.k.a. customer’s dissatisfaction). 

With the company’s exceptional customer service, Adidas will maintain a strong brand loyalty held by its consumers. From warranty on defected products to easy returns and exchanges, Adidas customers will remain happy and in consequence, will have a positive perceived value on the company. The customer reviews on Adidas’ customer support can speak for itself. Though the perception of a company can be subjective, the reviews found on YouTube speak otherwise; consumers speak highly of the company’s customer service and are satisfied with the service they received. For example, a YouTube video made by T-TiME’s KiTCHEN, comments on his experience in returning a pair of Adidas Boost sneakers. In the video, he highlights the ease and care in which the customer support team provided. Ultimately, making him a happy customer (as seen by his smile and enthusiastic demeanor). However, this service stretches beyond online support. A YouTube video by Colt Kirwan, appropriately entitled, “Adidas NYC Store Best Customer Service!”, documented his experience in the New York City Adidas store. He describes the Adidas employees as being happy, caring, highly knowledgeable, and very helpful, which epitomizes Adidas’ high service quality.

In order to be one of the leading sportswear manufacturers in the world, Adidas must provide an exceptional product excellence. However, Adidas merchandise cannot stand on its own. Customer excellence is, if not more, just as important as the products. By providing customer support and services of the highest quality, it adds value to the company as a whole and consequently will create a powerful brand presence within the market. 

References: 

https://www.adidas.com/us 

Jones, R. (2016, October 20). Adidas Made $100M More From Online Sales Than It Expected. Retrieved April 24, 2018, from http://www.complex.com/sneakers/2015/12/adidas-2015-e-commerce-sales-projections

McCann, M. (2017, October 02). Which schools wear Nike, Adidas and Under Armour? Retrieved from https://www.si.com/college-basketball/2017/10/02/adidas-nike-under-armour-contracts-schools-conferences

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Post 9: Brand Detail

Adidas as a brand is very recognizable. The iconic Three-Stripes logo cannot be mistaken for another brand. Any article of clothing marked with these Three-Stripes is inevitably associated with Adidas. Due to the company’s long history in the world of sports and pop-culture, about seven decades worth, Adidas has created a tenacious brand presence in today’s world. It is without a doubt that everyone knows what Adidas is. There is no ambiguity in the brand’s presence but rather a sense of pride and/or wonder. Thus, Adidas has emerged with a strong and powerful brand awareness. 

Adidas at its core is a manufacturer brand. This means that the manufacturer develops, owns and manages the product. By doing so, Adidas benefits from two things: One, the company can ensure that their products maintain a consistent quality and two, Adidas can control the price, promotion, and place of its products within the market. As a result of this consistency, Adidas has a strong brand association with the public eyes. When purchasing a pair of Adidas shoes, we as the consumer are aware that we have invested in a quality pair of shoes compared to other brands. With the release of Adidas’ line extension of shoes that include the UltraBoost, Yeezy Boost, and Adidas Originals, there is a perceived value of quality and exclusivity that is associated with the brand- I mean it’s nearly impossible to get a pair of Yeezy Boost 350 at retail price. With projects like this, Adidas is making a bold statement with its products. The exclusivity of these shoes creates a perceived value that outweighs the cost of the product itself. And as a result, the monetary investment of these products is perceived as a valuable cause; so it’s no wonder that consumers are willing to pay upward of $1,000 for a pair of Yeezy Boost from a third party retailer. By creating this so-called retail limitation on its products, Adidas is not only strengthening its brand awareness, but is also creating a brand association with valuable perceptions of quality, luxury, and rarity. 

Furthermore, through Adidas’ brand extension that goes beyond its original intent of running shoes, the company has expanded its variety of merchandises, which includes clothing/apparel, accessories, and sports equipment. Additionally, Adidas has branched out beyond the sports of soccer and running and introduced product lines that are associated with basketball, American football, weightlifting (via Adipower and Powerlift) and golf (via Adicross). As if that’s not enough, the brand has branched out into subcultures of hip-hop, fashion, skateboarding, and art with the support of artists with the likes of Kanye West, Run-DMC and Pharrell, and designer, Alexander Wang. 

In creating a strong brand identity, I believe that Adidas has done a phenomenal job; create a brand that is recognizable worldwide- check; associate the brand with powerful people- check; be seen by the consumer as a brand of high quality and appeal- check. Though it’s no small feat, Adidas has proved to be a dominant threat in the market of athletic shoes. But what maintains Adidas as a strong competitor is their ability to cater to different market segments and to continuously challenge its boundaries with innovation and creativity, which is inevitable in their products. So it would make perfect sense that Adidas has become the second largest sportswear manufacturer in the world (*see blog post 6 for details). If Adidas continues to uphold its integrity, I don’t doubt that Adidas will soon be on top of the world, sipping on margaritas (*no actual reference to the Mexican alcoholic drink, only used for the purpose of rhyming Adidas with margaritas). 

References: 

Foley, G. (2017, July 14). Adidas Three Stripes Branding: A Full History. Retrieved April 24, 2018, from https://www.highsnobiety.com/2017/07/12/adidas-three-stripes-history/ 

Adidas Golf Launches adicross – A New Line Extension That Addresses the On- and Off-Course Life of the Modern Golfer. (2017, November 28). Retrieved from https://news.adidas.com/us/Latest-News/adidas-golf-launches-adicross---a-new-line-extension-that-addresses-the-on--and-off-course-life-of-t/s/f4022b0a-46b3-4027-b11a-42ff1d5e9a09 

Smith, W. (2016, June 29). Adidas announces new line extension: "adidas KANYE WEST" . Retrieved April 24, 2018, from http://www.clickege.com/stream/adidas-announces-new-line-extension-adidas-kanye-west

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POST 7: The Package

Due to the fact that Adidas has a wide range of products from clothing to sports equipment the packaging differs in relation to the specific type of product being purchased. Adidas’ main shopping product is, of course, sneakers- ranging from athletic footwear such as running, basketball, and soccer cleats, to streetwear like the famous Stan Smith sneaker. However, Adidas released a handful of specialty products, mainly their product line of the Boost and the Yeezy sneakers with the addition of other collaboration products. This post will dissect the key elements of Adidas’ packaging, with the main focus being on the packaging for their shoes.

Adidas’ primary packaging is the shoebox. As mentioned previously, this packaging differs according to the type of shoes being purchased. Thus, in order to simplify this review, I will break down Adidas’ packaging into three packaging categories: the originals, the Boost, and the specialty/collaboration products.

The originals packaging utilizes only two colors: blue and white. The entire shoebox is blue in color with logos, texts, and other design in a contrasting white. The famous Three Stripes can be seen across the shoebox, almost perpendicular to the shoebox itself. The stripes are designed with jagged edges, something that resembles a tire track. On all four sides of the box (excluding the top and bottom) you will find the Adidas three leaves logo, with the text “adidas ORIGINALS” right below it. The shoebox is made out of two main structures, one being the main box itself (the part that holds the shoes) and the other is the lid of the box. The design of the shoebox is very simple and straightforward. It is aesthetically pleasing and exudes a sense of nostalgia- hence it’s referred to as the originals. This packaging does come in a variety of different color combination such as black & white, and green & white. Though the main color seemed to be the blue and white. If Nike has its famous orange shoebox, Adidas’ blue shoebox would be its most iconic packaging.

The second type of packaging is exclusively for the product line of the Boost sneakers. This packaging is different in design. The Boost shoebox is no longer blue and white. Instead, this shoebox has different shades of yellow, purple, and white as an accent color. The Three Stripes are not clearly defined as the entire top of the box is laced with about six stripes- all white in color. The word “boost” is drawn along two adjacent sides of the box in big white lettering. On the top of each corner of the box lies the Adidas Three Stripes logo as well as the brand name in black color. To me personally, this packaging is not the most appealing. Design wise it lacks exclusivity, considering a pair of Ultra Boost can cost up to $200. Though the color scheme is unique and stands out, I personally think it is quite tacky- the Originals packaging is more appealing compared to this box. However, the best part of this packaging is its effectiveness and convenience. Unlike the Originals shoebox, with two separate pieces, the lid of the Boost shoebox is attached to the base of the box. As a result, opening and closing the shoebox is done with ease and practicality. Nonetheless, I am not a fan of the design. I strongly feel that Adidas can make significant changes with a more sleek design.

Lastly, the specialty packaging includes shoes for the Yeezy line and the recently released Pharrell HU collaboration. First, the Yeezy packaging is by far my most favorite packaging design by Adidas. The shoebox is a solid, natural brown box color (think of any cardboard box). On the face of the box, the number 350 is printed in a large black font, followed by the word “BOOST” on the adjacent side of it. On the opposite end of the box the words “YEEZY BOOST 350 MADE BY ADIDAS – ADIDAS.COM/KANYE” is printed in black lettering followed by a small print of the Adidas Three Stripes logo. No additional colors are used on this packaging creating a very bare and natural design. However, unlike the previous packaging, this shoebox is unique in that it slides open- mimicking the design of a matchbox. This, by far, is the most special packaging and it should be, considering how exclusive these shoes are. Part of the appeal is just that- the exclusivity, increasing consumer’s perceived value of this product. Alternatively, the packaging for the Pharrell Hu is also different. Similar to the Yeezy, this packaging is bare and minimalistic. The shoebox is entirely white, with a triangular print on the face of the box and the text “Hu HUMAN 2016” printed inside the triangle- mimicking the symbol of an element on a periodic table. On the side of the box lies the Adidas three leaves logo, but this time in a mix of bright colors, similar to that of a rainbow. However, the only adjustment I would suggest is to use a matte finish as opposed to the glossy one that used. Having a matte finish, like that of the Yeezy packaging creates a level of uniqueness that will match with the exclusivity of the shoes.

All in all, the Adidas primary packaging is unique in nature. Their shoeboxes set them apart from other companies, thus creating a strong brand association. The packaging is easily recognizable with the Adidas brand and will not be mistaken for another brand. On the other hand, the secondary packaging is simplistic in its design. When shopping at their physical stores, the secondary packaging (being the shopping bag) is a simple brown paper bag, with the Adidas logo printed largely on the bag. Alternatively, when purchasing shoes from their online website, the secondary package is simply another box that harbors the shoebox- nothing special. However, I feel that Adidas should apply the same design it has on its shopping bag with that of its secondary packaging of the shoebox. Receiving a plain brown box in the mail is nothing special. But to receive a brown box with the Adidas logo printed on it creates a different feeling and excitement. Nonetheless, the use of a different and unique packaging for their specialty products is very smart on their part. Like mentioned before, creating a separate package for these products heightens the exclusivity of the product as well as for the Adidas brand. By making minor design changes, I feel that Adidas can create a stronger brand value, which will ultimately be advantageous for the company.

References: Adidas Official Website | adidas US. (n.d.). Retrieved March 17, 2018, from https://www.adidas.com Grewal, D., & Levy, M. (2017). M: Marketing 5th Edition. New York: McGraw Hill Education.

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POST 6: The Competition

When talking about competition, it is without a question that Adidas’ biggest rivalry can be summed up by a single image- the famous Swoosh. It is no secret that Nike is Adidas’ key competitor. Adidas and Nike have been dueling in competition for what seemed like an eternity. However, in the beginning of the new millennial age (early 2001), the two companies were nearly equal. However, with new product releases, athlete’s endorsements, and brand acquisitions Nike remained to be the reigning champion. Today, Nike continues to dominate the running shoe market followed closely by Adidas. Although Adidas has other competitors, such as Puma and Under Armour, no other brand is as big of a threat as The Swoosh. Thus, this post will discuss in depth of the main match event- Adidas vs. Nike.

So what is Nike doing that Adidas has failed to do? As a starter, Nike has a very strong sustainable competitive advantage. The Nike logo (The Swoosh) speaks for itself. Although Adidas’ famous Three Stripes is a well-known image, The Swoosh holds a higher value. This is part to Nike’s accumulation of product, customer, and operational excellence. By dominating these macros of the marketing mix, Nike has proven to be a company that has earned the top spot. It’s no wonder that Nike owns about 60% of the athletic footwear market share. When comparing the two brands, you can see a lot of similarities across the board. Firstly, the two companies share nearly identical mission statements- the quest to provide the best for athletes. They create and sell essentially the same products- athletic footwear (mainly running shoes). They sell the same idea- sportswear that will improve the athleticism in all of us. And they have the same market segments- such as basketball, running, fashion street wear, and skateboarding.

However, the differences cannot be clearer. First, Nike’s brand is associated with one of the biggest sports in the U.S., basketball. With the help of its subsidiary, Air Jordan, Nike owns 90% of the market share in basketball. This is evident not only through their basketball shoes, but through their big name endorsements (I.E. Kobe Bryant, Lebron James, and Kevin Durant). In the basketball market, Nike holds a strong brand awareness. Oppositely, Adidas is falling behind. It wasn’t until 2008 that they signed Derrick Rose and in 2015 with James Harden. So what’s with the late start? Well, Adidas’ main focus has been on international sports- mainly soccer. Adidas has endorsed soccer teams and famous players such as David Beckham and Lionel Messi. Nonetheless, Adidas acknowledges this huge disparity and recently began playing catch up in order to attract the American segment. Adidas saw the increase in the basketball segment and added more athletes to its roster, including Candace Parker, Brandon Imgram, and Kristaps Porzingis. Additionally, the brand begun endorsing NFL players (I.E. Aaron Rodgers and Von Miller) and started a partnership with the NHL.

On the other end of the spectrum, in the realm of the pop-culture both companies have had their fair share in defining the fashion social trend. Although Adidas has remained strong in targeting this market segment with the resurgence of the Stan Smith sneakers and the collaboration with artists like Katy Perry, Pharrel and Kanye West (for both parties), Adidas is still falling behind with only a 9% share of the USA’s footwear market while Nike owns 48%. With the recent trend of “fashionable trainers”, Adidas has maintain its attempt to release products that meet the demands of the consumers- to create a high performance shoe with a highly fashionable design. In fact, with the release of the Yeezy line, Adidas’ sales increased and the brad became a key player in the pop-culture (A.K.A Hype) movement.

The long history between Nike and Adidas has and will continue to be a highly competitive one. However, Adidas remains to be a tough opponent. With the release of the Boost technology coupled with the line of Yeezy Boost sneakers, Adidas “[became] the second-biggest sports footwear seller in America”, according to Business Insider. By understanding the market segments, social trends, and providing consumers with high degree of product and customer excellence, Adidas can potentially overtake Nike’s number one spot in the market. Though the competition is steep, Adidas’s main focus should be on its smaller goals- endorsing more popular athletes, designing new products, and maintain a strong brand presence in all segments. And in due time, they will be at the top of the game.

References:

Garcia, A. (2017, November 09). Adidas is running circles around its competition. Retrieved March 13, 2018, from http://money.cnn.com/2017/11/09/news/companies/adidas-us-earnings-nike-under-armour/index.html

Green, D. (2017, September 19). Adidas just dealt another major blow to Nike. Retrieved March 13, 2018, from http://www.businessinsider.com/adidas-passes-nike-jordan-brand-2017-9

Leach, A. (2015, November 09). Nike vs adidas: Who Owns the Market? Retrieved March 13, 2018, from https://www.highsnobiety.com/2015/11/09/nike-adidas-market-shares/

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POST 5: Target Market

To better understand the target market segment for Adidas, we will focus on two segmentation groups: demographic and psychographic.

Demographic:

The first and most obvious demographic segmentation is gender; men and women. The history of Adidas started as a means to provide athletes with the best shoes to enhance performance. Unfortunately, back in the days majority of the athletes were men. It is still evident today, that most of the big names in the Adidas roster are men (I.E. James Harden, David Beckham, and Aaron Rodgers). However, recently Adidas noticed this gender disparity and sought to make a change. According to Business Insider, Adidas “has taken several steps to improve its offerings to women, which have traditionally been limited.”1 The brand is doing so by offering exclusive products tailored for women, hiring former Lililemon CEO, Christine Day, as Adidas’ consultant, and utilizing specific marketing strategy that targets women (via social media, ad campaign featuring female athletes and subscriptions). Furthermore, Adidas has begun sponsoring women athletes such as tennis player Caroline Wozniacki, kickboxing champion Ruqsana Begum and WNBA’s Candace Parker.

On the other hand, age plays a huge role in defining the market segment for Adidas. The first generational cohorts to experience the launch of the Adidas brand are the Baby Boomers. These group of people were born between 1946 and 1964, during the start of Adidas in the early 1950’s. As Adidas expanded, Generation X (those born between 1965-1976) became the next generational cohort to be exposed to Adidas. During this time, the hip-hop culture of 80’s helped popularized Adidas through artists like Run DMC. Now, fast forward to the present. The biggest target audience for Adidas today is owned by Generation Y- The Millennials (those born between 1977 and 2000). When looking to see which consumers are purchasing and wearing the Adidas products, it is clear to see that the majority of them are 20 to 30 year olds (including the sponsored athletes themselves). This demographic is a huge influence in Adidas’ design as it evident through the release of the Boost technology, which targets the millennials’ needs and wants- combining performance and fashion in a shoe.  

Lastly, though it is not clearly stated income is also a factor in Adidas’ market segment. For example, the line of UltraBoost shoes starts at $180 and can go up as high as $200 or more, which is a significant amount for a pair of running shoes. Compared to competitors such as Sketchers, Under Armour, and New Balance who retails their shoes at under $100, Adidas’ high price tag is targeted towards a specific income demographic.  Despite this price point, Adidas is aware that their target audience is willing to purchase their products as they continue to release new and better shoes.

Psychographic:

To understand the who’s and they why’s of Adidas’ huge success, we must first try to understand the psychographic segmentation of the brand’s audience. With the release of the Boost line of sneakers, including the Yeezy Boost, considered to be “some of the most—if not the most—highly coveted sneakers out there ever since they debuted in 2015”2, Adidas’ popularity has increased monumentally. At first glance, the Yeezy Boost sneakers is not as impressive as one may perceived, but at a retail price of $220, what makes it highly valuable? The answer is a combination of social trend and consumer’s psychological needs. Since the early 2000’s Kanye West has become a household name and beloved artist. His influence in music and fashion has increased Adidas’s market segments.

Perhaps the deciding factor for consumers to purchase the Yeezy sneakers is psychological versus functional in nature. Compared to other sneakers, the Yeezy can be easily compared to Adidas’ other products (i.e. UltraBoost and Pureboost) with a lower price point. However, owning a pair of Yeey Boost will boost consumer’s personal gratification. This idea is associated with consumer’s self-concept. The Yeezy Boost is considered to be a popular footwear amongst celebrities and athletes, and with only a limited amount release, owning and wearing a pair of Yeezy, illustrates an image consumers want to portray. With the added rarity and difficulty to purchase the shoes at retail price, Yeezy Boosts have had price tags up to $3,000 through third party sellers. As a result, this only heightens the sneakers’ exclusivity. In other words, wearing a pair of Yeezies communicates fame and esteem without having to say a single word.

On the other end of the spectrum, sneakers like the classic Stan Smith has also targeted a market segment of its own. Similar to the Yeezy, owning a pair of Adidas’ Stan Smith sneakers fulfills consumers’ psychological needs. Through the pop-culture lifestyle both the Yeezy Boost and Stan Smith sneakers have become a staple for the millennials’ footwear collection. By understanding consumers’ behaviors, self-values, and lifestyle Adidas was able to attract a huge target market. The Yeezy Boost is a prime example of a psychographic segmentation that companies focus on. Another target audience is athletes. Adidas is well known to be a popular sports brand and by focusing its efforts and ideas in soccer and basketball (just to name a few), the company can further expand its market segments. But what makes Adidas stand out more than ever is their craft to merge sports with fashion. This is evident through products such as the UltraBoost, Yeezy Boost and Stan Smith Boost- a mixture between high performance shoes with a fashionable design.  By appealing to the mass, embracing the popular culture and providing consumers with high-valued products Adidas was able to increase its revenue and strengthen its sustainable competitive advantage.

References:

1 Schlossberg, M. (2016, February 18). Adidas is working to fix a huge mistake its been making for decades. Retrieved March 06, 2018, from http://www.businessinsider.com/adidas-is-now-selling-to-women-2016-2

2 Woolf, J. (2017, June 13). Yeezy Boosts Are About to Get Easier to Buy. Retrieved March 06, 2018, from https://www.gq.com/story/yeezy-boosts-are-about-to-get-easier-to-buy

Connelly, T. (2017, February 02). Adidas tells the stories of female athletes' struggles with 'Unleash Your Creativity' campaign. Retrieved March 06, 2018, from http://www.thedrum.com/news/2017/02/02/adidas-tells-the-stories-female-athletes-struggles-with-unleash-your-creativity

[fullertonadidas]

POST 4: SWOT

Strengths (Internal) 

Sustainable competitive advantage through a strong brand presence: Adidas is a household name. Everybody has heard of the Adidas brand and if you haven’t, you will in the near future! 

Product excellence: Adidas products, mainly their shoes, are arguably one of the best athletic shoes out there thanks to the “Boost” technology. Since its release in 2013, the line of Adidas Boost sneakers have become a revolutionary feat in the sneaker game. 

Customer excellence: From easy returns to exchanges, newsletter, promotion code, and custom designed sneakers (a.k.a. value cocreation), Adidas maintains a strong competitive advantage. 

Diverse market segmentation: Adidas targets a wide range of demographics and cultures (i.e. gender, colleges, fashionistas, skateboarders, athletes and pop culture enthusiast). 

Expansion of Ideas: Adidas not only sell products but ideas through sponsorships, endorsements, and collaborations with big names such as James Harden, Von Miller, Karlie Kloss and Kanye West. 

 Weaknesses (Internal) 

High price point: Though the line of Adidas Boost shoes are top of the line, it does not come with a low price tag. A single pair of Adidas UltraBoost can cost you up to $180, while the Yeezy Boost 350 will retail for over $200. 

Sponsorships/endorsements: Though Adidas have a good list of sponsored athletes, the brand can expand more and obtain bigger names such as Lebron James, Kevin Durant, and Odell Beckham Jr. 

Management and control: Adidas has over 800 factories with more than 60,000 employees. Adidas, must maintain a strong corporate social responsibility by taking care and satisfying all 60,00 employees- which may be a huge number to deal with efficiently. 

Opportunities (External) 

Locational excellence: Although Adidas has a strong Internet presence (mainly through their website), the brand can benefit from expanding their physical store locations- there aren’t many Adidas stores out there (especially in the U.S.). 

Increase in market share: As of 2015 Adidas holds 9% of the U.S. market share in running shoes. The brand can increase this by creating products specifically designed for runners and sponsor runners/running events such as the Olympics. 

Expand corporate social responsibility programs by spreading awareness. 

Expand line of products and market segments: Though Adidas is known as a sports brand, branching off and targeting the fashion segment/culture could be an advantage for the brand. Adidas can create a different and bigger customer base by creating products that focuses on fashionable/street wear. 

 Threats (External) 

 High competition: Sports brands like Nike, Jordan, and Under Armour are brands that constantly competes with Adidas. 

Political and legal battles: Because a majority of Adidas’ factories are overseas, taxes, tariffs, and regulations are constant obstacles the company must face on a daily basis. 

Environmental concerns: Having 800 factories around the world must not be good for the environment. Thus, Adidas should consider green alternatives and focus on sustainability.

Sweatshop criticism: It was reported that Adidas has poor working conditions overseas with over 700,000 sweatshop employees. This negative image can hurt the brand in the long run. 

Black market: Fake/imitation products can cause a bad image for the brand and lower revenue. 

Overall, Adidas has come a long way in the past 10 years. Though sales have increased, I believe that Adidas should focus on expanding its brand presence/awareness. Nike has been the reigning champion in clothing the majority of professional athletes in the U.S. In order to compete with Nike, Adidas should attempt to sponsor more big name athletes and professional sports team. By appealing to the public’s most favorite player/team, Adidas can spread its brand awareness. Furthermore, Adidas is widely known to be the leading sportswear for soccer. Though soccer is the most popular sports internationally, I think it would benefit the company if Adidas were to target basketball and/or football for the American consumers. By associating themselves with the NBA or NFL, Adidas can attract more consumers and consequently grow bigger as a company, especially for the U.S. market. 

 On the other hand, having a lower price point on its product can be an advantage for the brand. Nike, Under Armour, and Puma have already begun competing with Adidas by creating similar shoes at a lower price point. Adidas is already at an advantage with its Boost technology, but by lowering the price of its shoes in comparison to the other brands, Adidas can potentially gain more sales.

References:

Adidas: Where do your products really come from? (2012, November 15). Retrieved March 05, 2018, from http.//ireport.cnn.com/docs/DOC-882034

Ericson, J.W. (2018, February 01). Adidas Boost: the Sneaker Technology that Changed a Company’s Fortunes. Retrieved March 05, 2018, from https.//www.gq.com/story/adidas-boost-history-yeezy-sneakers 

Profile. (n.d.). Retrieved March 05, 2018, from https.//adidas-group.com/en/group/profile/

[fullertonadidas]

POST 3: Strategy

What comes to mind when you hear Adidas? Sports? The famous three stripes? Shoes? Stan Smith? Or all of the above? Adidas has come a long way since its early days in Germany. Today, Adidas has entered the value-based marketing era and focuses its products and ideas with the consumers’ interest and values in mind. But what makes Adidas stand out? Well, its main sustainable competitive advantage would be its brand- the iconic Three Stripes. Nike has the swoosh, while Adidas has the stripes. Adidas’ design is easily recognizable, which allows them to stand out from their competitors. 

With the release of the Boost technology, Adidas has revolutionized the sneaker game. This product is another sustainable competitive advantage for Adidas. Prior to the Boost release, Nike was considered the reigning champ of running shoes. However, with the help of the Boost sneaker line (with the new design and high-valued shoes), it’s obvious that Adidas upholds its product excellence and has proved to be a threatening competition for Nike. On the other hand, Adidas’ iconic Stan Smith sneakers have proven to be a timeless product in the fashion industry targeting a different market segment. Though the price point for Adidas’ products can be argued to be on the high side, I think its quality can justify its price tag; Adidas products are of high value-and I stand by that. Their shoes are in fact what they claim it to be, a comfortable cross between “technology and style”1. If Adidas continues to release innovative products like the UltraBoost or PureBoost shoes, I do not doubt that Adidas will become the biggest sportswear brand in the world.

In relation to its product excellence, Adidas has a good understanding of customer excellence. Through its rewards program, 3Stripes, customers can earn special offers, prizes, exclusive invitations to events, and even a fast pass to skip long lines. And the best part is that the program is absolutely free. Additionally, Adidas’ customer service is exceptional. Through its website and physical store locations, Adidas’ no hassle return and exchange policies is a crowd pleaser. Furthermore, Adidas understands the subjective needs of its consumers. On the Adidas website, customers can design various shoes to their liking, giving them the creative power and allowing them to be involved in value cocreation. With the growing trend of the sneaker culture, Adidas understands that customers want and expect good quality products and services and I feel that through the three stripes, you get just that. 

In this day and age, online shopping has increased in popularity. Though it is important to satisfy the Internet users, it is equally as important to have a good amount of retail stores. According to Statista.com, Adidas has 1,757 concept stores and 902 factory outlets around the globe. With the combination of its website and retail stores, I would consider Adidas to have a strong locational excellence. 

Lastly, Adidas’s operational excellence possesses potential threats. As of today, Adidas has approximately 800 factories globally. A majority of its factories are located in Asia, with 337 factories in China and 99 in India. Though Adidas started as an international brand, having a global supply chain and foreign factories mean that the company faces legal regulations on imports and exports. Although labor costs overseas maybe lower than that of the U.S., the legal fees on trade and shipment may affect the price point of its products. However, in 2015 the company opened its biggest distribution center in Niedersachsenpark, Germany and aimed to carry out a huge load of its operations in this center including wholesale and eCommerce. According to the Adidas Group CEO, “The new distribution center will enable [Adidas] to bring products faster and more efficiently to our customers and consumers.”2 On the other hand, what will help Adidas maintain their strong competitive advantage is through its efficient operations. While other companies may charge for shipping costs, Adidas offers free shipping on all of their products. And with only 3-5 day delivery service, customers can get their products quickly without the extra charge. This efficiency satisfies their existing customers and will attract new potential consumers. 

References: 

1 Ericson, J. W. (2018, February 01). Adidas Boost: the Sneaker Technology that Changed a Companys Fortunes. Retrieved March 05, 2018, from https://www.gq.com/story/adidas-boost-history-yeezy-sneakers 

 2 Adidas Group to open its biggest Distribution Center worldwide. (n.d.). Retrieved March 05, 2018, from https://www.adidas-group.com/en/media/news-archive/press-releases/2011/adidas-group-open-its-biggest-distribution-center-worldwide/ 

Statista . (n.d.). Number of retail stores of the adidas Group worldwide 2008-2016, by store type | Statistic. Retrieved March 05, 2018, from https://www.statista.com/statistics/268442/number-of-retail-stores-of-the-adidas-group-worldwide-by-store-type/

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POST 2 Brand: The 4-1-1 

History: Adidas was created on August 18, 1949, in the small town of Herzogenaurach, Germany by a man named Adi Dassler. Dassler’s initial goal was to create light-weight soccer shoes for athletes. As a result of Dassler’s innovative product, Germany became the World Cup champion in 1954, which consequently gave Adidas its huge success. Since then, Adidas became a powerhouse in athletic footwear and continued to create advanced and productive sneakers aimed to help athletes become better competitors.

The brand branched off into the art and street-wear culture in part due to the exposure from a hip-hop group known as Run DMC. The group released a song entitled My Adidas in 1986 and in support of its song the group began wearing Adidas footwear during concerts, interviews, and music videos. As a result, Adidas became more than just an athletic shoe, but it also became a fashion statement. In 1989, Adidas became an official corporation and by 1995, the company became public. Since then Adidas continued to provide consumers with novel products to satisfy the demands of the generational cohorts. To this day, Adidas continues to sell past designs (such as the same shoes worn by Run DMC in 1986) in addition to newer models that attract the new generation. 

Marketing Mix: 

Product: 

Adidas offers consumers with products, mainly that of tangible goods. The primary focus for Adidas is shoes, with clothing and accessories as supplements to their sneakers. Their primary target audience or segment is sports-consumers (from fitness to sports enthusiast and athletes). According to Forbes, in 2012 Adidas was ranked number three (followed by their biggest competitors, Nike and ESPN) as the most valuable sports brand in the world with a net worth of $7.9 billion. 

Place: 

Adidas is a huge company, their official website indicates that they currently have about 60,000 employees in over 160 countries creating over 850 million products per year. Just to put some things into perspective, there are a total of 195 countries in the world, and for Adidas to have at least a single employee in 160 countries, that’s more than 80% of the world! Talk about global domination. Adidas’ main corporate headquarter is located in Herzogenaurach, Germany but they also have offices in the USA (Portland and Boston), Panama, Amsterdam, and Hong Kong. 

And as for consumers, Adidas is widely available. You can purchase a wide range of Adidas products from shopping malls, stores, and online. 

Price: 

Now, speaking of numbers: On their website, Adidas’s products range from a pair of socks at $6 to soccer cleats at $300. Though the average cost of Adidas’ most popular sneakers ranges from $100-$200, you can find almost anything within your desired budget. Through the exchange of their goods with consumers, Adidas’ net sales for the year 2017 as of May 2017 was at €5,671 million and a gross profit of €2,790. With the help of Google’s currency rate conversion, that’s roughly $7,016 million in sales and $3,452 million in gross profit. Due to their continual increase in sales, Adidas has become America’s second-biggest sportswear company next to Nike, according to Business Insider. As long as the company continues to satisfy its consumers and stick to its mission statement “to be the best sports company in the world”1, it won’t be long until Adidas reach the number one spot. 

Promotion: 

The huge profit generated by Adidas would not be possible without their effective brand communication. Adidas utilizes social media to target a specific culture and generational cohort, that of the millennials to be exact. Through apps such as Instagram and Twitter, we can be notified about Adidas’ newest products. Direct links to products are embedded within their posts, making it an easy and instant process to purchase these goods. 

Furthermore, Adidas creates brand awareness by selling ideas. By targeting a specific market segment Adidas is able to influence these consumers into buying their products. The primary market segment for Adidas is none other than the world of sports. Professional athletes from basketball players such as James Harden and Derrick Rose, to soccer player Lionel Messi, football quarterback Aaron Rodgers, and even professional skateboarder Dennis Busenitz are sponsored by Adidas. These athletes can be seen sporting the Adidas gear during games, matches, competitions, commercials, and TV appearances. Through these athletes, Adidas can market its brand at an international level knowing that millions of consumers are being exposed to the brand simply by watching a sports game. 

References: 

1 Corporate Strategy. (n.d.). Retrieved February 14, 2018, from https://www.adidas-group.com/en/investors/strategy/group-strategy/#/unsere-mission-das-weltweit-beste-sportartikelunternehmen-sein/ 

Ozanian, M. (2013, March 26). The Forbes Fab 40: The Worlds Most Valuable Sports Brands. Retrieved February 14, 2018, from https://www.forbes.com/sites/mikeozanian/2012/10/17/the-forbes-fab-40-the-worlds-most-valuable-sports-brands-4/#5e0715a63971 

Adidas Official Website | adidas US. (n.d.). Retrieved February 14, 2018, from https://www.adidas.com/us 

Green, D. (2017, March 16). Adidas fixed its biggest mistake and became the second-biggest sportswear brand in America. Retrieved February 14, 2018, from http://www.businessinsider.com/why-adidas-is-focusing-on-the-us-market-2017-3

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Post 1 Brand Selection: ADIDAS 

ADIDAS. What do you think when you hear that name? Shoes, perhaps? Sports? Or maybe fashion? Adidas has become a household name. You see it everywhere! They supply goods such as shirts, jackets, shoes, baseball caps, backpacks, socks, and water bottles. And who can forget the iconic three stripes design (reminiscent of the crosswalk of Abbey Road but with fewer stripes), which is a highly sustainable competitive advantage for the company. With its design, you cannot mistake Adidas for another brand. 

The reason I selected Adidas as my brand of choice is simple- I love their products. For the past five years, Adidas has had a huge makeover, from a slightly attractive brand, famous for its iconic Run DMC bulky shoes to sneakers that will guarantee to turn heads. Adidas is innovative in that it creates products that target a wide range of market segments- anywhere from cleats for athletes to the widely popular white and green Stan Smith sneaker that nearly every teenager owns. Additionally, Adidas offers a wide range of products, but the best part about Adidas? Value cocreation. Simply put, Adidas allows the consumer to design his or her own sneakers. They put the power of creativity into the consumers’ own two hands. Through their website, you can select an array of sneakers and design it to your liking.

It wasn’t until the release of the Boost line of running shoes that I became instantly hooked to the brand. Advertised as “the highest energy return in any running sneaker”1 on the market, I was skeptical at first. But being an exercise enthusiast, I had to give it a try. Prior to my first pair, I was running on New Balance. Though they provided me with enough support, they lacked the wow factor. With my new pair of PureBoost DPR LTD, I became an instant believer. The shoe had both the wow factor and also the feel of running on clouds- trust me. How Adidas was able to pull that off was beyond me, but it definitely made a loyal customer out of me. With this brand, I feel that Adidas really knows what the consumers want. It is quite evident through their product excellence that they meet the demands of the consumers; their goods can definitely attest to that. 

As Adidas grows as a company to be the dominant force in the sneaker game, I would like to dig deeper and investigate more on the brand. Who knows, I might end up learning a thing or two. Or maybe even end up with another pair of sneakers along the way. Reference: 1 Ismael, A. (2017, September 18). Heres why Boost technology makes Adidas the most comfortable sneakers ever. Retrieved February 14, 2018, from http://www.businessinsider.com/most-comfortable-sneaker-adidas-boost-technology/#amir-ismael-commerce-reporter-adidas-nmd-1.