Adidas Company Analysis

Scott LesterA42549339

ADV 492-NMDL

Adidas Overview

• Adidas is a German-based sports apparel manufacturer selling shoes, accessories and clothes appealing to all different demographics and interests.

Challenges

• Separating and establishing themselves over their competitors. (Nike, Reebok, Under Armour)

• Current economy (consumers spend their money more carefully)

• Stealing/obtaining celebrity endorsers from Nike/Under Armour

Goals

• Be the top seller in the shoe, sports wear, clothing and accessory industry far beyond their competitors.

• Developing marketing strategies such as “impossible is nothing.”

MiAdidas

• Custom design your own shoe• Colors, designs, shapes, sizes of your own

shoe• If they can make their feature more prominent

than Nike’s, they can gain a different consumer segment.

Build Individual Outlet Stores/Theme

• Build individual outlet stores in more locations (malls, stand alone stores)

• Something Nike and Under Armour does not do

• If people see Adidas store's popping up everywhere, people will buy more of their products because they are more accessible to the public

Social Media

• Twitter it is the fastest way people connect to a mass group of people.

• Start a facebook group for each store that is opening up and post status's that say "5% off everything in the store in the next 15 minutes." (generate attention and extra revenue that necessarily would not be there)

• Also will have a blog that people in the store can be running of the interesting things people say/do while shopping for Adidas wear. All these things can help bring attention and develop personality within the store and the products.

Measuring Success

• See how much money big outlet stores make in a month, week, holiday season.

• If the percentage of revenue is similar after paying employees, promotions, marketing, rent etc. Than establishing and building new stores is a good idea.

Regular Budget

• 8,000 per store. That includes rent and utilities ($1000), paying employees ($6000), shipping products to store($500), marketing running promotions($500).

• If each store can make 20,000 during the course of a regular month (about $666 per day, which is feasible because they are pricier products with longer lives so people will spend money on durable products).

Holiday Budget

• During the holidays, you would pay a little bit more to keep the employees working/working more hours because it is busier and a little bit to run more promotions.

• Rent ($1200), paying employees ($8000), shipping products ($600), marketing, running promotions ($600). It would cost about $10,400 for a seasonal month. Each store can definetly make about $25000 during one seasonal month (about $830 per day)