Course Name-Marketing Management-II
Course Code - MBA-202
Topic- Product Mix of Adidas
Date- 11-04-2022
Submitted by-
Shagun
Manav
Rakshit
Submitted To- Dr. Ranju Katoch
CONTENT
Introduction
Board Of Directors
Product mix
Competitors Of Adidas
Swot Analysis
Recommendations And Awards
Overview
•Company: Adidas Group
•Founder: Adolf (Adi) Dassler
•Year founded: 1924 (as Gebruder Dassler Schuhfabrik), 1949 (as
Adidas)
•CEO: Kasper Bo Rorsted
•Headquarter: Herzogenaurach, Bavaria, Germany
•Type: Public
•Ticker Symbol: ADDYY
•Market Cap (March 2022): € 40.9 Billion
•Annual Revenue (FY 2019): € 21.2 Billion
•Net income (FY 2019): € 2.1 Billion
INTRODUCTION
• Adidas is a German Multinational corporation founded in 1959 by Adolf Dassler,
headquartered in Herzogenaurach, Germany.
• It is one of the oldest footwear brands that is still considered a major style statement by
youngsters worldwide.
• Having operations in over 100 different countries, Adidas is a large and multifaceted
organization that employs 62000 people all over the world.
• Since its establishment, Adidas has opened its successful brand subsidiaries including
Reebok, TaylorMade, and Runtastic.
BOARD OF
DIRECTORS
• Kasper Rorsted :- Chief Executive Officer
• Roland Auschel:- Global Sales Officer
• Brian Grevy:- Global Brands Officer
• Harm Ohlmeyer:- Finance
• Amanda Rajkumar:- Human Resource
• Martin Shankland:- Global Operation
PRODUCT MIX
• Product Mix, another name as Product Assortment, refers
to several products that a company offers to its customers.
It basically has 4 dimensions:
• Width:- refers to how many product lines the company carries.
• Length:- total number of products within the company product
lines.
• Depth:- the total number of variations for each product.
• Consistency:- refers to how closely products are linked to each
other
Product Mix OF Adidas
• Adidas deals in various product lines including footwear,
apparel, accessories, football kit, golf equipment, etc.
• The range of Adidas products is also divided according to
different sport games for which Adidas provides kits and
equipment.
• Some of the sports games where the company majors in
supplying the team kits globally are: Association football,
Baseball, Basketball, Cricket, Gymnastics, Ice hockey,
Lacrosse, Running, Skateboarding, Tennis, Kabaddi, and
Golf.
Product Mix of
Adidas
• The Adidas group has 4 main subsidiary’s.
• The first is its own brand name – Adidas,
which is present in clothes as well as footwear.
• The second is Reebok which has overtaken
Adidas and is one of the leading subsidiary’s in
the Adidas group.
• The 3rd is Rockpot which specializes in
outdoor footwear, apparel’s and accessories.
• 4th is Taylor made which is focused on
golfing clothes, equipment etc.
• Out of all the above subsidiary’s, Reebok is
the strongest followed by Adidas.
• Adidas has various products. The major product of Adidas is off
course their footwear.
• Coming in various design and style, Adidas footwear is robust and
athletic.
• The secondary product of Adidas is apparel’s and accessories.
Apparel’s like T-Shirts, jackets, sweatshirts, shorts etc are in
great demand.
• Where Reebok is stronger in footwear, Adidas is stronger in
apparel’s.
• The aim of Adidas is to give the best footwear to their customers
which has the combination of technology and design.
• These products are not need based. In fact, the shoes are bought
by customers to satisfy their wants and desires.
• Similarly, the apparel’s are targeted towards comfort during heavy
activity.
• However, although the main target is sports, the apparel’s are
frequently used as a style statement by youngsters.
Competitors of Adidas
NIKE
PUMA
FILA
Contd..
• Nike –
• It manufactures design and sell sportswear, apparel and other related accessories like adidas. The customer choose
Adidas and Nike on personel performance.
• Puma –
• It is the strongest competitor of Adidas. The reason is that once Puma and Adidas were operated under the brand
name of Dassler by Rudolf and Adolf. Later on their relations were not good and they separate the entity in two
companies Adidas and Puma. Puma also sells the products like shoes, shirts, sneakers.
• FILA
. The Fila brand is mostly liked by the medium income earners to low income earners (who are majority in society).
The reason behind this liking is because of the relatively low pricing when compared with Adidas, Nike and Puma.
SWOT ANALYSIS OF ADIDAS
STRENGTHS OF ADIDAS
• Brand Value:- Adidas is one of the most valuable brands in sports. According to Forbes,
it is ranked at #3 position (Nike at # 1 and ESPN at # 2) with a brand value of $6.8
Billion. In 2019, Adidas was ranked the 61st most valuable brand in the world
• New Products Innovation:- Since its founding, Adidas has prioritized the quality of its
products over everything else. In 2018, EUR 153 million was invested in R&D (0.7% of
its annual net sales) and EUR 152 million in 2019. High-quality, innovative products are
one of the driving forces behind its ever-growing customer base
• Celebrity Endorsements: Adidas has strived to maintain and enhance its recognition as a
youthful and urban brand through endorsements from celebrities. Adidas has been
endorsed by a long list of movie stars and music hit-makers such as Beyoncé and Kanye
West.
• Young Customers prefer Adidas: The consistent focus on product quality and customer
experience has enabled Adidas to nurture a global and loyal customer base,
particularly teens and young adults between 16 and 24 years in urban areas.
Weakness of Adidas
• Supply Chain Shortage: Adidas outsources the production of most of its products to
3rd party or independent manufacturing suppliers, mainly in China, Cambodia, and
Vietnam. It has exposed Adidas to the risk of overdependence on foreign suppliers.
• Expensive Products: Adidas charges a premium or high prices for its products, which
has alienated low-income consumers. Only upper- and middle-income group customers
can afford over a $100 shoe.
• Limited Product Line: Adidas Group has only Adidas brand and Reebok brand under
its portfolio, which has restricted the company within sports footwear, sports apparel,
and accessories. Therefore, a decline in demand for sports-related products can be
disastrous to Adidas.
• Links to Forced Labor: Adidas was among 83 multinationals that were
linked to forced labor in factories across China by ASPI. Any association with forced
labor not only exposes the company to legal risks but also erodes trust among
consumers.
Opportunities of Adidas
• E-commerce: In recent years, the number of consumers who shop online or use e-commerce sites has increased
significantly. Adidas incorporated Instagram’s checkout feature into its distribution network, leading to a
40% increase in online sales in the 1st Quarter of 2019, which implies that it can replicate this success in other
social media platforms such as Facebook and Snapchat.
• Growing Sportswear Industry: Sports and fitness have grown in popularity with no sign of slowing down
soon, which means there will be a consistent increase in demand for sportswear products and assortments.
• Culture of Yoga Pants: Increased health consciousness, change in preference, and tastes among consumers have
increased demand for sports-related products. “Culture of yoga pants” is redefining our sports apparel industry.
• Increasing Demand for Premium Sports Products: Improved economic situation in developing countries has
increased purchasing power and demand for premium products. Adidas can capitalize on this by expanding into
countries such as India, where discretionary income is expected to increase by 45% by 2025.
• Global Expansion: The rapid growth of emerging markets in Africa, Asia, and South America
provides Adidas with lucrative opportunities for expansion. For example, Adidas has about 12,000
stores in China, and in 2019, they plan to open additional 1000 new stores.
Threats of Adidas
• Competition: The main threat facing Adidas is increased competition due to
globalization and technological advancements, which has enabled entry and penetration
of small and medium companies. This implies that Adidas has to
compete against main rivals such as Nike, Under Armour, Puma while fending-off new
entrants and penetrators.
• Rapid Expansion and Adoption of Ecommerce: Companies are adopting the
rapidly expanding e-commerce at an alarming rate, which can pose a threat to Adidas if its
main competitors such as Nike and Puma adopt e-commerce before them.
• Supplier Dominancy: The fact that Adidas outsources most of the manufacturing of its
products implies that the suppliers have more bargaining power than the company. The
skewed balance of power exposes Adidas to the possibility of being held hostage by its
biggest suppliers.
Awards and recognition
• 2014 – editors group among the global 100
most sustainable corporations in the world
for 10th time in a row.
• 2013- Adidas included in Dr. Jones
sustainability indice for 14th time.
• 2013- Inclusion in Carbon disclosure
leadership index for Germany Austria and
Switzerland.
• 2016 - BAUM Environmental award
• 2016- environmental manager of the year.
THANK YOU
