ADIDAS �1

Matthew Crowley

Dr. Spirou

MKT-265: Social Media Marketing M, TH 11:00

Adidas: Final Paper

30 November, 2015

ADIDAS �2

Company Overview

According to Marketline, Adidas and its golf line, TaylorMade, acquired Adams Golf in

2012, adidas, along with its TaylorMade-adidas Golf segment, acquired Adams Golf. This

incorporation designs, assembles, markets and distributes unprecedented golf clubs for all skill

levels. This addition to Adidas provides a stronger golf brand name for Adidas. Market line also

mentions that Adidas announced its plans to close their only sportswear factory in China in 2012.

Additionally in 2012, the Nuremberg District Court allowed adidas to continue manufacturing

and distributing its Primeknit shoe in Germany. Nike tried to take Adidas to court to issue an

order to enjoin Adidas from producing their Primeknit shoe because both the Primeknit and

Nike's Flyknit shoes employ a one-piece fused yarn upper.

In 2013, adidas launched Energy Boost running shoes, with their new BOOST

technology, a cushioning technology creating high energy return. This new BOOST technology

provides more support in a running shoe with the same pop that any other shoe has. Also in 2013,

adidas and FIFA extended their partnership agreement, naming adidas the Official Partner,

Supplier and Licensee rights for all FIFA events, including the FIFA World Cup, until 2030.

In 2014, Adidas introduced its new retail concept, HomeCourt. This interactive store

concept, HomeCourt, changes the atmosphere of retail so the consumers can feel the energy of

the game while they shop. Adidas introduced this new concept in its largest global store in

Beijing, China, in February of 2014. In July 2014, adidas entered and official partnership with

Barclays Premier League’s Manchester United. Manchester United is a big name in the soccer

world and Adidas will supply products to Manchester United and provide Adidas uniforms for all

ADIDAS �3

of the club's teams. Additionally, Adidas now has the right to distribute dual-branded Manchester

United merchandising products worldwide.

Situational Analysis

Messi 15.1 soccer cleats are in a collection of cleats that Messi wears. They are the

newest model in the collection, which means Lionel Messi, world soccer phenomenon, will be

wearing these cleats next time he steps onto the field. These cleats are made for the player who

dribbles at opponents just like Messi himself. These cleats are built with a “messiTOUCH X-ray

surface” for precision in every touch, a “messiFRAME locked-in fit,” and a

“messiGAMBETRAX” stud design. These cleats are designer for players like Messi, who play to

win. This new model has been slightly redesigned for a softer and more lethal grip on the ball,

and for form fitting comfort. With these cleats your feet will be carry a light 8.2 oz. with a soft,

comforting synthetic material. You will have a good touch on the ball and your feet will be

dressed in style, just like Lionel Messi.

Adidas offers sportswear for both men and women, as well as the youth. They have

shoes, apparel, accessories, and sports gear for both men and women. Their shoe line ranges

from soccer cleats and basketball shoes to slides and sandals. They also make lifestyle shoes and

boots now to expand their target market. In their apparel, they offer sweatshirts and jackets, short

and long sleeve shirts, graphic tees, pants and shorts, and jerseys. Accessories offered are bags,

balls, watches, hats and sunglasses. Then they offer more sport specific gear such as basketball

shorts, soccer socks, football gloves, etc. Adidas offers a micoach line, which allows consumers

to choose their training, get coaching, get tips & tricks from the pros and keep track of

performance. This technology offers an app to track all of this information. In addition to all of

ADIDAS �4

the products Adidas has to offer, they also sponsor athletes in their ads and show the athlete

wearing their product. On the Adidas Facebook page, they post motivational posts with pictures

of athletes and quotes such as “Create for the moment,” or “Your dream. Your freedom. Claim

it.” Adidas isn’t only in selling their products, but they know that if more people are out

exercising, more people will need to buy their products, and they can sell their brand that way.

Adidas has a growing target market because of changes in style and fashion. Mintel

shows studies that show that the changes in the consumers who buy sportswear. One study shows

that fitness apparel is not just for fitness anymore. The study is based off of 2,000 internet users

18 years or older. The study showed that 38% of consumers wear sportswear casually, not just to

work out in. Another study shows that young adults are the fitness industry’s “low hanging fruit.”

Other studies showed that both consumers who are healthier buy fitness apparel to a greater

degree, and those who work out also buy more apparel. Adidas has a youth line of products,

reaching out to the younger age groups. Adidas also can target those who work out more

frequently, because they need more clothes to exercise in. Since healthier people tend to wear

more athletic clothing, they too are included in Adidas’ target market.

Adidas is a top competitor in the sports equipment and apparel industry, competing with

Nike, Under Armor, and Puma. Adidas specializes in soccer equipment, but they still provide

equipment and apparel for other sports, such as basketball, baseball, american football, running,

and tennis. Adidas sells both sporty, lifestyle apparel and cleats and shoes to be worn while

playing the sports, along with all the clothing needed. Just like every other big company today,

Adidas uses social media to advertise and promote their products for their customers. They use

banners, emails, and social networking to reach their consumers and satisfy their consumer’s

ADIDAS �5

needs. Adidas started in Germany, with a focus of providing athletes the best possible equipment.

After Germany won the World Cup for soccer in 1954, Adidas became a household name

for soccer equipment everywhere. When Adidas started to grow, they had to expand their target

consumers, and in order to do that, they used Product Adaptation. They changed their product

line to reach out to other countries, like the United States, who value other sports such as

basketball and baseball more than they value soccer. They have not changed their promotion of

their products at all and have stayed successful because of the strong brand name, Adidas. In

March of 2015, Mark King, president of Adidas North America, said “The goal is for that effort

to get Adidas to 15 percent of U.S. sports footwear and apparel sales by 2020.” This will help

them compete with Under Armor and Nike and take an edge on their opposition.

The biggest external environmental factor that affects Adidas is the time of year. For

example, in a New England winter, Adidas will start to sell more of their warmer apparel, such as

sweatshirts, jackets, hats, gloves. Winter also means basketball season, so Adidas will use more

of their stock space for their basketball related products. The key environmental factors that

come into play when considering a global social media marketing strategy are demographics,

time of year, and culture. The time of year affects global social media marketing strategies,

because Adidas sells apparel and other sports equipment, most of it being seasonal. Culture is the

last thing to consider here, because every culture is unique, and each culture values different

styles, objects, and events differently.

Nike is a major competitor of Adidas because of the products they sell. Nike is

headquartered in Beaverton, Oregon, United States and employs 56,500 workers with an annual

revenue of $27,799 million. Nike is one of the world's largest designers, marketers and

ADIDAS �6

distributors of athletic footwear, apparel, equipment and accessories. The company operates in

the Americas, Europe, the Middle East, Africa and Asia. The company recorded revenues of

$27,799 million during the financial year ended May 2014, an increase of 9.8% over the

financial year of 2013. Adidas employs 53,731 people with an annual revenue of $19,315.7

million. Nike is a slightly bigger company, with a noticeable upper hand when it comes to

revenue. Both Nike and Adidas sell to the same market, and have similar prices on their

products, making them competitive companies.

Development of Creative Strategy

Adidas follows a fairly strict ad formatting template. Most of their email ads start with a

headline in big, bold letters. Below the headline there is a sub-headline that tells you more about

what they are advertising. Then below that they write what they are offering, for example, “2 for

$25 tees and 50% off select styles.**” They often have this information over a photo of an

athlete or multiple athletes covering a good portion of the ad. Adidas usually offers different

links, such as a “save now” link, “shop men” link, “shop women” link, and a “shop kids” link.

Adidas always includes their logo somewhere on the ad, so it is obvious who is trying to

advertise. Adidas uses white space where there is finer print, and on some of the margins of their

ads. Their email advertisements usually promote their sales, more than specific products.

Adidas take a slightly different approach on Facebook. Just like the emails Adidas sends

to their customers, the Facebook posts are not usually product specific. The format of these ads

are different, however. Adidas uses Facebook to motivate their consumers to go out and exercise,

or to follow their dreams. These posts use a lot more white space, partially because of how

Facebook is set up, but it still works in Adidas’ favor. All of the print that Adidas wants on these

ADIDAS �7

ads is easily legible and noticeable. After the viewer reads what Adidas has to say, they can then

view the image or video posted directly below the writing. Finally, because this is posted on

Facebook by Adidas, the brand name and profile picture (with the Adidas logo) are posted with

the ad, showing the viewers that it is Adidas.

Adidas also uses Twitter to advertise to their consumers. They take a similar marketing

approach on Twitter as they do on Facebook. They use the white space to help get their short

message across, then glamorize their tweet with a photo, most of the time being of an athlete.

Adidas usually tags the athlete in the post, gives a hashtag like “#teamadidas” and always

retweets other Adidas twitter accounts, like Adidas Football.

Another way Adidas advertises is on google.com. They pay to have their website be the

first possible link when someone searches “Adidas” in a google search. These advertisements

have no graphics or logos, just print. There are headlines that have links to different parts of the

Adidas website, and each headline has a short description about what that part of the website

entails. These ads change, but Adidas will always have the top search result, to make sure they

direct their target market to the right place on the internet.

Adidas puts advertisements in the newspapers too. In a Dick’s Sporting goods insert in

the paper, Adidas shows of their products in their ads. The ad starts with their logo in the top left

corner, then has “SALE 50% off” in big letter right below it with a large picture of their product.

Then there is a headline with a sub-headline describing the product.

For the most part, Adidas is consistent with their ads, except for the fact that they are not

always advertising their products. Adidas gets their customer engagement by posting on social

networks like Twitter, asking about their products and by responding to customer questions or

ADIDAS �8

complaints that may come up. They provide plenty of sales for their customers to take advantage

of, including those who love the brand, but may not be able to afford it. Adidas rarely shows

their tagline, “Impossible is nothing.” but they use other similar motivational lines all over

Facebook and Twitter.

Adidas’ advertisement campaign focuses on increasing their sales, but focuses more on

informing their consumers. Adidas spends more time trying to motivate their consumers and

letting them know about their product, rather than persuading everyone to buy their products.

Obviously Adidas spends time advertising their products, but it does not seem like their main

emphasis. Since they is a big competitor with Nike, Adidas should have the goal to pass Nike in

revenue in the next 10-15 years. They are competitors, but Nike generates a significantly larger

amount of money annually.

Adidas’ main execution style is slice of life, where they want their products to be a part of

their consumers’ everyday life. Adidas wants people to be wearing their apparel or footwear

daily, whether its for exercise, or just to wear as lifestyle apparel. Adidas does not have an

animated symbol, and it would be tough for a company like Adidas to have an effective animated

symbol. With the lack of television advertisements, Adidas also does not have a spokesperson,

because they have nowhere for this well-known person to speak. Adidas does put their products

through many tests to check for durability, in a sense, this is scientific evidence. In most of the

companies advertisements, they make the consumer feel more motivated to exercise because of

the content in their ads. There is very little to no humor in Adidas’ advertisement campaign.

Adidas takes a serious approach to advertising, just trying to say what they need to say.

ADIDAS �9

Adidas take a very similar approach to the majority of their advertisements, with little

variance from ad to ad. They get their point across, show off their product, and try to catch the

eye of the viewers while making their products look appealing. Adidas needs to appeal to

everyone in their target market in order to get something out of their advertising. They need to

appeal to both men and women, people of all ages (mostly young adults), people with larger

incomes, and especially those who exercise more often than others.

Media Objectives

Adidas does pretty well with their advertisements, however, they do not use all the media

vehicles to aid them. Adidas uses magazines and the newspaper to get their products seen and

show sales that they might be having on certain products. Adidas also uses their social media

pages effectively. Adidas posts regularly on both Facebook and Twitter. Adidas, however, does

not use television advertisements or radio ads to reach their consumers.

Adidas has 2.4 million Twitter followers and just under 21.8 million people like their

Facebook page. It is hard to say what the frequency is on these social media sites, because not

everyone checks these sites regularly, and when they do, its not a definite that they will see the

posts from Adidas’ page. Adidas circulates their advertisements on Facebook almost every week,

posting new updates. On Adidas’ Twitter page, the post multiple times a day, leaving a much

shorter circulation. Since Adidas is doing well with their social media websites, and posting

regularly, they must have a good marriage between their reach and frequency, or they would have

changed something.

The shelf life of these ads on the social media pages is not very long at all, while some

posts might not even be seen by consumers. Adidas tweets multiple times a day, so if one of their

ADIDAS �10

follows doesn’t check twitter for a few days, they will definitely be missing some of Adidas’

advertisements. Adidas’ innovativeness is fairly good, however, they do not use much creativity

when posting on Facebook and Twitter, because they can only do so much. Adidas always gets

creative with their graphics, but other parts of the advertisements lack creativity, when they could

be more creative to help catch the viewers attention.

Adidas focuses more on showing off their products than persuading consumers to buy it.

Most of their persuasion is through sales, making the buyers feel like they should buy the

product because it is on sale.

Sales promotions are used to their full potential with this company. Adidas likes to create

reasons for their consumers to buy, so they have sales. When companies have big sales, like on

Black Friday or Cyber Monday, there is a traffic buildup in the store, which makes the

consumers see sales, and impulse buy things they might not normally buy. This Black Friday,

Adidas had plenty of sales at their store in Kittery, Maine, displaying sales and products in their

window to attract shoppers walking by. Adidas had all of their “doorbuster sales” to make the

shoppers feel like they were saving big, by purchasing these products. Adidas also sent out

plenty of emails about sales on Black Friday and Cyber Monday, giving coupons and other

savings to those on the email list.

Adidas has built their image for the company mostly through soccer. They sponsor some

of the world’s largest events such as the FIFA World Cup. Everyone worldwide watches this

soccer tournament, whether they enjoy watching soccer or not. Adidas has built their company ,

partially because of their long-term partnership with FIFA. Adidas has always made soccer cleats

ADIDAS �11

and soccer balls and they decided to reach out to other sports and started producing other sports

gear.

Financial Overview

In 2012, Adidas had an increasing annual revenue until 2014 when there was a drastic

drop in the company’s revenue. Adidas’ revenue in 2012 was $19.67B, then $19.95B in 2013. In

2014, Adidas’ revenue dropped to $17.67B. Adidas struggled financially in 2014 and it showed

in their net income as well. The net income followed a very similar pattern to the company’s

revenue from 2012-2014.

Conclusion

Adidas uses market penetration with just about every single product they offer. If they

sell a shoe, they more than likely have another shoe similar to it. If they are design a new pair of

soccer cleats, they will most likely still be selling a slightly older pair in the same market. Adidas

offers many products with the same intended target audience.

Kanye West has been working on a new shoe collection and recently debuted his "Kanye

West x Adidas Originals Yeezy Season 1" collection. This collection is the new buzz for Adidas,

and some people are wondering whether or not Kanye can save Adidas. Adidas has been

reaching out to the hip hop style in its most recent push and Kanye is going to help lead them

through it.

ADIDAS �12

References

Adidas Official Website | adidas. (n.d.). Retrieved November 30, 2015, from http://

www.adidas.com/us/?cm_mmc=AdieSEM_google-_-trademark-general-b-exact-_-

trademark-x-x-general-_-

adidas&cm_mmca1=us&cm_mmca2=e&ipd=0&gclid=Cj0KEQiA4eqyBRDUh7Omv9v

CtsoBEiQAspfs8ow7j_HYN0bM8G0jIDyiwDgyeH1lm9qR5P5LU6z0r7MaAl7l8P8HA

Q&gclsrc=aw.ds

Business Source Complete. http://web.a.ebscohost.com.ezproxy.snhu.edu/ehost/search/basic?

sid=c11a2056-0096-485e-a471-c7e430c7b2d8%40sessionmgr4004&vid=0&hid=4204

Hoovers. http://subscriber.hoovers.com.ezproxy.snhu.edu/H/home/index.html

Marketline. http://advantage.marketline.com.ezproxy.snhu.edu/

Mintel. http://academic.mintel.com.ezproxy.snhu.edu/homepages/default/