Table of Contents
- Market and Demographic Segmentation
- Market Targeting
- Market Positioning
Adidas is a multinational corporation, founded and headquartered in Germany that designs and manufactures shoes, clothings and accessories (Wikipedia Contributors, 2019). Adidas is well liked by many as they sell a different range of items such as men's and women's clothings, shoes and accessories. The benefits and services of Adidas are that they are putting in continuous efforts to strengthen the brand to maintain in a competitive market by improving the quality, looks and designs in order to exceed customer's expectations. Adidas is also a global organisation that focuses on being creative to attract more customers to achieve an outstanding sales target. ("Adidas Mission Statement | eNotes," 2014).
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The purpose of this report is to educate you about how Adidas segment, target and position their market and its progressions with their new and improved products with different targeted consumers.
Market and Demographic Segmentation
Market segmentation divides a market into distinct groups of buyers based on demographic, geographic, psychographic or behavioural characteristics. Through my secondary research, I have found out that Adidas segments their market into different groups due to different customers' preferences and likings. They might need a separate product or marketing mix of benefits or value from the products they purchase. In addition, it also provides a clearer identification of market opportunities and particularly analysis of gaps in the market.
Adidas have different segment of products of which includes Performance, Originals, Style and Neo. Adidas Originals provides limited edition type of casual and heritage fashion clothings and shoes that are usually street-styled with more colours but less of a sporty look, whereas the typical Adidas appeals more to people to play sports (HIGHSNOBIETY, 2018) Secondly, Adidas performance was designed to maintain their loyalty towards athletics. They provide products mainly focusing on football, soccer and training and had even collaborated with sports groups like Chealsea FC. (HB Team, 2013)
Thirdly, Adidas Style have clothes that are sporty but trendy at the same time. It is usually popular among the youths.
Adidas Neo is the latest sub brand which is launched to target younger age groups of customers from 14-19 years of age. ("adidas NEO," 2019)
Customers with higher social status tend to purchase products from Adidas that are on the pricer end. Customers with lower social status are able to purchase items that are preferably more affordable for them. (Psychographic characteristics)
Customers who loves sports will tend to purchase sporty items from Adidas whereas on the other hand, customers who loves street styled clothings will probably buy the products they want from Adidas Originals or Style as they have the same preferences. This happens as they have the same behavioural characteristics which they are able to relate to one another. (Behavioural characteristics).
Demographic segmentation studies the human populations in terms of size, age, gender, occupation, and other statistics ("What Is Demographic Segmentation & Why Is It Necessary? [Examples]," 2019). For example, Adidas have clothes, accessories, shoes that are suitable for males and females ( adults / kids ) in order to provide a wider range for different age/ gender groups which would then attract more customers. With this, Adidas is able to improve ability to closely tailored products or services according to the individual market segments requirements and improve organization's ability to compete effectively and profitably, possibly avoiding strong competitors.
Adidas targets existing groups of customers who love and have a passion for fitness and sports as well as people who supports Adidas since the start. They target 20-30 years of age groups who are athletics or young people who loves sports. ("Who Is Adidas' Target Market Today?," 2019) Adidas is starting to focus on age groups of 13-18 athletics as they have a strong believe that they are the next generation of athletics that will improve the brand and the most influential consumer group("Who Is Adidas' Target Market Today?," 2019). However, the brand is quite popular among 40-65 years of age groups as well.
Adidas products are usually higher priced due to the quality and brand equity in the market. Hence, they target customers of upper middle class/ high end customers. In recent years, smartphones have brought many new lifestyle products for Adidas originals target group which benefits the brand as it has a larger customer base. Alongside with this audience, Adidas targets a smaller group of customers who are not into sports that purchases shoes/ clothing items as a fashion statement, they are between 15-25 years of age groups. It is very difficult for Adidas to connect to all customers in large and diverse market as if they try to target everyone, the message they are trying to deliver will be unclear and it will not be able to satisfy any customers at all.
Adidas position through speed, cities and open source. ("Strategy," 2018) They deliver customers with products that they are looking for to where and when they want them which is very efficient. They deliver to target cities which are shaping the global trend. Furthermore, Adidas tries to collaborate and innovate with athletics, social influencers, reporters to co-establish the sports culture together with Adidas. It also includes the marketing mix which consists of place, price, promotions and product. Adidas is sold in their retails outlets that can be found in most shopping malls around the world. Some of Adidas products can be found through distributors and market intermediaries such as JD sports and Aw Lab. (Place)
The prices in Adidas are rather affordable but there are still some products that are higher priced than usual as it may be a new product that is introduced in the market recently or is a uniquely designed item. (Price)
Adidas uses social media to promote their items to notify online users of the newly added or promotion items that may catch their eye. For example, sometimes when I am surfing the net such as Instagram and Facebook, I happen to chance upon Adidas advertisements showing me the new designs that are available in stores which I may be interested in. This serves as a more convenient way for customers to look for items they want since many have smartphones these days.
Adidas also involves influencers/ athletics for sponsorships and collaborations. Through this method of marketing, Adidas is able to increase their sales with their help. For example, users of internet are able to see the posts of the influencers using the product and showing how good the product is. This will then convince the customers that it is worth buying that product and may actually really purchase it. (Promotion)
Adidas products are usually designed with three-stripes with unique colours and designs which may appeal to different groups of customers. Adidas is also considered as one of a luxury brand. (Products)
In a nutshell, Adidas provides high quality and durable products. Market segmentation, targeting and positioning is one of the important factors in Adidas's company marketing. "Impossible is nothing" is Adidas's slogan which strengthen the brand philosophy. I believe that with continuous efforts and determination, Adidas will be able to sore to a greater height and be the first ranking sports brand in the world.