Marketing Mix of Adidas
The marketing mix is a combination of various factors that are considered important in marketing. In product marketing, 4Ps are usually considered: product, price, place, and promotion. In services marketing, there are 7Ps, with people, process and physical environment added to the combination. What they mean and how they apply to Adidas will be presented in brief here.
Brief Overview of Adidas
Adidas is a German manufacturer that has made its global reputation as a leading brand in sports gear, apparel, footwear and other sports-related products. Established by brothers Adolf and Rudolf Dassler in 1924, it was not until 1949, after Rudolf broke away to form Puma, that the brand, Adidas – a combination of Adi (from Adolf) and Das (from Dassler), and its famous logo – the mark with the three stripes – was launched.
A product is an intangible (services) or tangible (product) offering that is made to satisfy the needs of a category of people.
Adidas’s products are high quality sports goods such as footballs, footwear such as shoes for different sports, apparel for almost every sports including as tennis, football, cycling, etc. as well as accessories such as glasses and watches. The company has several other brands under its umbrella, such as Reebok – which also makes sports apparel, Rockport – which specializes in adventure sports gear, Taylor-made – which focuses on golf equipment and apparel, and some other minor acquisitions, all related to sports.
The price of the product is the amount that a customer pays for it. Price is important as it determines the sales and demand for the product and consequently, the firm’s profit and survival.
Since Adidas has a reputation for high quality, it maintains this image by following a combination of a Skimming-Competitive price strategy, which entails introducing new products at high prices, thus skimming off the cream of high-end customers, and then gradually reducing prices as competition jumps in and the product becomes a mass-market one. If the product is not new, such as normal running shoes, prices are set low, or at competitive levels with rival brands.
Placement or distribution involves the distribution of the product in a place that is accessible to potential buyers. This may include online and/or brick-and-mortar stores.
Adidas used to sell through the normal distributor-retailer channel, which it still maintains, but is now shifting to its own “company outlets” more and more. This gives it more control over prices, promotion and customer service, while ensuring better mileage and displays, as well as tackling the problem of spurious or duplicate items in the market. Adidas products can also be bought online.
Promotion is the process of employing tactics to boost brand recognition and sales. It may include several methods such as advertising, sampling, public relations campaigns and so on.
Adidas is a heavily promoted brand that uses all kinds of media such as print, electronic, outdoor and others. It is advertised in most stadiums worldwide at all major events like the Olympics, Football World Cup, etc. It sponsors leading club and national teams in the sports that it covers, such as Real Madrid and Germany in football, and employs brand ambassadors such as Steffi Graf and Lionel Messi.
The Adidas logo that has undergone minor changes while retaining its basic 3 stripes format is one of the most visible ones worldwide and the company spends billions on brand recognition. The company also uses price promotion strategies in its stores in addition to other promotional tactics.