INTRODUCTION
Adidas was founded in Germany in 1920.it became an important supplier of footwear after Second World War. Later, it expanded its footwear line to include fringe sports. While Nike is the global leader in athletic shoe market, Adidas is nothing more than the second place in that market because it started its business in the field of soccer shoe market. So, Adidas could not handle the whole athletic shoe market. Later on, Adidas wanted to expand its capability on the shoe market. In order to satisfy the market’s need in depth, Adidas also went for the basketball market.
However, Adidas found that marketing is much more important because shoe is in the “shopping goods” category. It means that products from different brands have high homogeneity. Adidas must have a good marketing strategy if they don’t want to be in a price war. So, Adidas outsources its production and focus on marketing in the 1990s.
Marketing campaigns;
In the marketing process, Adidas launched several campaigns and we are going to show you briefly in the following table:
Timeframe Adidas’ major turning points
1995 Campaign for soccer footwear leader
1998 Focus on U.S. market
2002 “Colours” campaign in Sweden
2003 “Living Billboard” in Japan
2003 “Vertical Soccer Field” campaign
2004
T-MAC4: The first laceless basketball shoes
2004
“Impossible is Nothing” campaign
“R2L”campaign
2005
15~25% of total marketing budget on new media
Others
Partnered with MTV
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“Match Centre” campaign
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“Respect M.E.” campaign
Suggested strategies
On the other hand, we want to give Adidas some suggestions in the future.
First of all, Nike is the strongest competitor to Adidas as we know. Second, Nike’s capital capability is also huge. So, it’s certainly foolish for Adidas to compete with Nike in a price war.
According to the above analysis, Adidas can try to differentiate itself