Kisha Dean
Tusculum College
BSN-554
Introduction
Adidas was formed in 1948 and named for its founder Adolf “Adi” Dassler. It is currently the largest manufacturer of sportswear in Europe, while it is second worldwide after Nike. It is based in Germany and currently has more than one-hundred and seventy subsidiary companies. The company was formed after Dassler and his brother Rudolf disbanded their previous company, Gebruder Dassler Schuhfabrik (Dassler Brothers Shoe Factory). The company was divided after a rift between the brothers, and two separate companies were formed. Adidas, named for Adi Dassler, and Ruda, named for Rudolf Dassler. Ruda was later renamed Puma, and the two companies went into competition against each other.
Both companies utilized varying marketing strategies that included advertising to the masses via athletes. This marketing strategy was duplicated by the American run Nike Company, and by the 1990s, both Adidas and Puma were practically completely replaced in the U.S. market. In 2006, Adidas acquired the Reebok Company, which helped to rejuvenate its place in the U.S. market (Esterl, 2008). The company now exists second in the world behind Nike as the leading manufacturer of sportswear. The company’s main strategy is to “lead the sporting good industry with brands built upon a passion for sports and a sporting lifestyle” (Strategy, 2011).
Strategies for Functional Areas
Marketing/Sales
Adidas has employed a successful marketing strategy since its inception. In its earliest days, the company simply relied on word of mouth and product placement. While Adidas and Puma competed in early years, the people in their small town in Germany were the main faces of the companies. Over the next several years, though Adidas turned to spreading its advertisements across the world and began using famous faces to sell shoes. Professional athletes were employed to be spokespersons for the company, and several particular
References: Babej, M. (2011). Adidas sees opportunity in sustainability. Forbes. Retrieved from http://blogs.forbes.com/marcbabej/2011/03/22/adidas-sees-opportunity-in-sustainability Elfes, H. (2011). Adidas rises after forecasting higher profit, sales for year. Business Week. Retrieved from http://www.businessweek.com/magazine/content/10_21/b4179022112034.htm Elfes, H. & Jarvis, P. (2010). Adidas predicts 2011 growth on China rebound, Russia. Businessweek. Elfes, H. & Steele, M. (2011). Adidas debuts lightest basketball shoe to tackle Nike. Businessweek. Esterl, M. (2008). A run for their money. Wall Street Journal, W5. Retrieved from http://online.wsj.com/article/SB120606066903653643.html?mod=googlenews_wsj. Townsend, M. & Elfes, H. (2010). Adidas’ big money defense against Nike. Businessweek. Retrieved from http://www.businessweek.com/magazine/content/10_21/b4179022112034.htm Wilson, J. (2010). Adidas targets US youngsters for sales. Financial Times. Retrieved from http://www.ft.com/intl/cms/s/0/c13f7b72-eb3a-11df-811d- Wong, E. (2011). Is Reebok Adidas’s next footwear darling? Forbes. Retrieved from http://blogs.forbes.com/elainewong/2011/03/02/is-reebok-adidass-next-footwear-darling/.