The paper "Situational Analysis - Adidas" is a great example of a marketing case study. A daring dream in 1920 by Adi Dassler to make his first shoe prospered over the years to become the trademark Adidas. The company, together with the three-striped trademark was founded in 1948, and from the start, it sought to adhere to three guiding principles namely: producing a shoe that meets sports requirements; producing a shoe that would protect athletes from sustaining injuries; and producing durable shoes for the consumer market (Bupesh, 2011). Over the years, Adidas has been a market leader in the sports shoes and sports apparel industry, second only to its main competitor Nike (Bupesh, 2011).
As a company that embraces innovation as part of its growth strategy, Adidas embraced e-marketing in 2000, when it launched its website www. adidas. com/com/, and later integrated e-commerce into the same website in the summer of the same year (Bupesh, 2011). Notably, Adidas’ action came four years after Nike had launched its e-commerce website and platform. In the sections below, this paper will conduct a situational analysis of Adidas’ Internet marketing strategy.
According to Nykiel (2007), a situational analysis monitors the “ appropriateness of the firm’ s marketing strategy to determine whether changes to the strategy are necessary” (p. 9). In the concluding section, this essay makes recommendations that Adidas should adopt in order to enhance its Internet marketing strategy. 5C analysis of Adidas’ Internet marketing strategy Company According to Adidas Group (2013), Adidas’ main goals and objectives when developing the Internet marketing strategy were to enhance more online purchases through the use of friendly electronic functionalities such as ease of navigation, speed and ease of purchase.
Position-wise, the Adidas website acts as a virtual store accessible to millions of customers across the world. On the website, customers are able to choose different products, compare prices, and Adidas is also able to run promotions on the same platform. By 2012, Adidas Group (2012) indicated that it generated 68% “ currency-neutral sales growth” through electronic commerce sites (p. 38). Consequently, Internet marketing-generated sales worth € 158 million in 2012 alone. The total net sales for the company in 2012 were € 11.344 billion. The company targets € 500 million in sales through the same channel in 2015 (Adidas Group, 2012). Adidas has a diverse brand portfolio, which serves athletes and casual consumers interested in fashion trends.
Notably, all the brands are available on Adidas marketing platforms (most especially the website), and through e-tailers, which are Internet-based retailers. Competitors Having acquired Reebok in 2006, Adidas’ main competitors are Nike and Puma. Nike has a 39.2% global athletic footwear market share compared to Adidas’ 15.1%. Puma’ s global market share was projected at 10.6%, while New Balance, another competitor worth mentioning, has a 9.4% global athletic footwear market.
These projections are based on the 2012 period as indicated by Trefis Team (2013). Customers Adidas’ main target is young customers (18-30 years), both male and female, who are active in sports or sporting activities. Some of the sporting activities mentioned in the adidas-group. com website include football, running, basketball, training, and outdoor activities such as hiking. Collaborators In addition to having what the Adidas Group (2012) considers a strong supply and distribution chain, the company has other collaborators in the name of brand centres, concept store, and factory outlets.
The e-tailing concept that is used by each of the aforementioned collaborators is especially relevant to the Internet marketing concept since it enables the collaborators to collectively present an Internet-based marketing process to consumers.
Adidas Group. (2012). Pushing boundaries. Annual Report 2012. Retrieved September 13, 2013, from http://www.adidas-group.com/en/investorrelations/assets/pdf/annual_reports/2012/GB_2012_en.pdf
Adidas Group. (2013). Shop Adidas. Retrieved September 14, 2013 from http://www.adidas.com/us/
Bupesh, D. (2011). Case study – Nike vs. Adidas, market and comprehensive competition analysis, retrieved September 13, 2013, from http://www.beknowledge.com/wp-content/uploads/2011/01/16790Case%20Study%20-%20Nike%20vs%20Adidas,%20market%20and%20comprehensive%20competition%20analysis.pdf
Gieras, A., King, J., McNeill, T., & Parrish, T. (2003). Athletic footwear industry analysis. Retrieved September 14, 2013, from http://www.slideshare.net/FNian/athletic-footwear-industry-presentation
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Nykiel, R.A. (2007). Handbook of marketing research methodologies for hospitality and tourism. London: Routledge.
Trefis Team. (2013). Here’s why Nike will keep gaining market share in sports apparel. Retrieved September 13, 2013, from http://www.trefis.com/stock/nke/articles/181715/heres-why-nike-will-keep-gaining-market-share-in-sports-apparel/2013-05-09
Wondra, E. (2013). Nike vs. Adidas: Internet marketing. Retrieved September 14, 2013, from http://ericwondra.wordpress.com/2013/02/26/nike-vs-adidas-internet-marketing/