This blog is all about Adidas Success Story, but there was a time when Adidas lost business to Armour.
Adidas was used among teenagers to denote somebody who wore unfashionable sportswear.
Yeah, you don’t want your brand to go there. That was the wake-up call for Adidas in 2014. Within two years, they turned their image around with some pretty simple effective marketing techniques.
So, what did they do?
Contents
Let us look at Adidas simple,
effective marketing techniques from 2014 to 2020
- Structural focus on the US-market
- Focus on Influencer’s Personalities
- Individualization of product design
- of Adidas
- Digitization and Social Media Plan
- of Adidas
- Adidas Target Audience
- Where was Adidas in 2016
- Significant Developments of
- Adidas in 2019
- Adidas Viewpoint for 2020
- (No impact of Corona-Covid19 on
- Adidas)
- Adidas Digital marketing
- strategy for India
Adidas in 2014
Let us take a look at Adidas’ success story after the debacle of 2014.
Their sales in the US market dropped by 23% while Armour grew by 20%. Consequently, they lost their rank as the second biggest player.
It was their golf equipment and their soccer wear that just wasn’t selling. Wait, didn’t Adidas sponsor the German soccer team that won the world cup? Yeah, that didn’t help them. Adidas stock price lost 40% of its value that year.
Let us look at Adidas simple, effective marketing techniques from 2014 to 2020
In short, Adidas changed its marketing strategy to focus on influencers, individualization, and digitization. It helps them to find Adidas Success Story.
Structural focus on the US-market
Adidas put Eric Liedtke, an American top-manager, in charge of global brands. Liedtke then sent hundreds of employees to the United States as they were closer to the market.
They then developed new products in a metropolis like London, Paris, Tokyo, and New York, where new trends emerge.
While other brands only promoted their campaigns with celebrities, Adidas focused on the personality and direct involvement of the influencer.
Focus on Influencer’s Personalities
While other brands only promoted their campaigns with celebrities, Adidas put a focus on the personality and direct involvement of the influencer.
For example, Kanye West, for example, designed his own fashion line with Adidas and presented it during the New York Fashion Week.
That created such a demand for the line that when it hit the market, prices for the limited edition went through the roof.
Adidas also revised it’s sponsoring and only focused on absolute top teams and athletes like Lionel Messi, Derrick Rose and Aaron Rodgers or on stars like Ellen DeGeneres and Pharrell Williams.
Individualization of product design of Adidas
Adidas designed the soccer shoe “Glitch” without laces that consisted of an inner and an outer part.
Both parts were available in different styles which enabled every soccer player to design his shoe.
In the beginning, Glitch was only available through an App with a special code in London leading to same hype as with Kanye West’s line.
They attempted to communicate with their clients and make premium, associated and customized encounters. At the end of the day, they made energy about games on an individual level.
The brand took each touchpoint like versatile, social and retail that buyers can collaborate to give a reliable encounter.
By taking bits of knowledge from advanced examination and Big Data, Adidas attempted to be wherever its shoppers are. Adidas vows to convey multichannel, bound together and furthermore special encounters.
Digitization and Social Media Plan of Adidas
Adidas’ five-year technique that gave in 2015 has the name Making the New. Depicting itself as a computerized organization,
Adidas needs to be the world’s best donning attire brand. To accomplish this, they utilize ensuing digitalization as a vital piece of their promoting system.
The “Best” signifies planning, building, and selling the best game products on the planet. The organization burned through 90% of its promoting spending plan on computerized crusades and web-based life.
Adidas designed another app that allowed customers to reserve products and pick them up in-store later.
Through the app, Adidas was also able to inform customers of new products and ask for feedback which created an experience that connected online with offline.
On social media, Adidas delivered their message naturally and authentically generating a highly engaged audience. The ‘Stan Yourself’ initiative, for example, Adidas asked users to tweet a photo of themselves to win a personalized pair of the Stan Smith shoe.
Adidas Target Audience
After the organization’s system, the objective market needs to concentrate on the endeavours that it needs to place in.
With a long history of giving great athletic sportswear to competitors, Adidas’ target advertise is sports members, including those at the most elevated level of their game, just as non-competitors who are roused by or genuinely love sports.
Adidas target advertises inside the 20-to a 29-year-mature age bunch who are competitors or are enthusiastic about games. This is considered the most grounded shopper showcase.
The organization is cantered, focusing on fortifying its image with the upcoming age of competitors in the 14 to 19-year-mature age gathering.
Adidas accepts this objective gathering is the most compelling buyer bunch on the planet.
Where was Adidas in 2016
Just three years later Adidas surpassed Under Armour again. Sales grew by 32% in the US market in 2016.
Adidas had to revise its forecast four times because they were performing so well. They became the star of the German stock exchange as its value increased by 60%.
Significant Developments of Adidas in 2019
- Currency-neutral revenues up 6%
- Double-digit sales increase in strategic growth areas Greater China and e-commerce
- Operating margin expands to 11.3%
- Net income from continuing operations grows 12% to € 1.918 billion (up 15% to € 1.972 billion when excluding the negative impact from IFRS 16)
- Management proposes a dividend increase of 15% to € 3.85 per share.
Adidas Viewpoint for 2020
(No impact of Covid19 on Adidas)
- Money unbiased deals to increment somewhere in the range of 6% and 8%
- Working edge to increment to somewhere in the range of 11.5% and 11.8%
- Total compensation from proceeding with activities to increment somewhere in the range of 10% and 13%
- Viewpoint for 2020 doesn’t mirror any effect from coronavirus flare-up in China.
Adidas Digital marketing strategy for India:
With revenue of Rs. 1,132 crores in FY18 and continues to be one of the leading brands in the sportswear business in India.
Adidas Digital marketing strategy for India is based on one objective in 2020. As a brand, Adidas will be focusing on diverting towards digital.
It will remain the first choice of Adidas in India. In today’s time, digital is no longer a choice but a necessity as it is online where most of the content is being consumed.
This is commonalty understood by Adidas with the experience from other countries.
It will remain the first choice of Adidas in India. In today’s time, digital is no longer a choice but a necessity as it is online where most of the content is being consumed.
This is commonalty understood by Adidas with the experience from other countries.
What does this mean for you?
Adidas’ success story represents an excess of 53,731 individuals in more than 160 nations who produce more than 660 million item units consistently and create deals of € 14.5 billion.
These numbers alone can undoubtedly recommend that Adidas Group is a significant complex association. In any case, they keep things straightforward, lean, and quick.
What Adidas pulled off with its simple, effective marketing techniques in just two years takes excellent skills.
“Analyse your strategy. Revise it if necessary. Put a focus on the personality and the involvement when using influencers. Engage your audience in creative ways.”
Nice post