Market Segmentation of Adidas

Every great company has a successful history behind it, and the story of German brand Adidas is not an exception. In 1949, a man named Adi Dassler wanted to improve athlete performances and thought that creating a new brand that can offer qualified sportswear products is a possible solution. While Adidas started its activities in a washroom, nowadays it has already conquered the world. To understand how this company became so popular, it is essential to look at its segmentation strategy.

To begin, let’s watch this commercial and understand what the target segmentation of Adidas is.

Firstly, it is essential to note that one can notice how often Adidas includes famous athletes, influential individuals in the company’s energetic and entertaining commercials. Through this marketing strategy, Adidas makes its products more popular.

This ad is not an exception, too, as the main persona of it is Shaala Mosley, a fashion, beauty, and lifestyle influencer who aspires to inspire and empower women. The main hero of the commercial is Mosley, who is having an active workout by wearing leggings, a top, and running shoes (Boost) produced by Adidas.

Adidas started producing Boost shoes in 2013, and it immediately caught the customers’ attention because of its unique design and comfort. These running shoes are made to cope with every temperature, making it possible for the person to wear them even if it is snowing or raining. After wearing Boost, one can feel that they are running on the clouds. Besides, the leggings and the top the girl is wearing are also eye-catching and comfortable to wear.

It is equally important to note that Mosley seems to be a woman who follows a well-organized routine and does not accept herself failing. Shaala Mosley is full of confidence; she gives importance to the way she looks and tries to have a modern look.

All these lead us to conclude that the main hero of this commercial is one of the representatives of the target market that Adidas has chosen- Peacocks.

Let’s learn some interesting facts about this target group.

Personality, Lifestyle and other interesting facts:

• Peacocks are usually self-focused and confident people who want to be different from the crowd. This can be noticed in their clothes, the places they go, and even the preferable topics for them to talk about.
• As success is highly significant for these people, they accept failures as a chance and continue doing their job even with more enthusiasm.

• In a team, the representatives of this target segment are more likely to be leaders, as they have all the needed qualifications.

• Peacocks believe that learning is a continuous process, and they are never satisfied with the educational system.

• While these people have a modern perspective on life, they still keep traditional values, especially when it comes to family values.

• Peacocks usually have many friends whom they can count on.

• Most of them give importance to a long-lasting relationship with one partner, and in many cases, they choose their partner based on physical attractiveness.

• Peacocks believe that it is crucial always to be informed, and although TV is a traditional medium, they prefer to learn about new events from TV.

• The Internet is the primary platform for them through which they are always in touch with their friends and relatives.

• Old mediums such as radio and print media do not really interest these people.

• The representatives of this target group care about their country, so they try not to pollute the surrounding.

• Peacocks are fond of going to clubs and other places that are full of people. Getting VIP tickets is a real attraction for them, and they can even try to find lots of ways to get them.

Shopping, Brand usage:

• As Peacocks give massive importance to the way they look; they are pretty active when it comes to shopping. When these people like one brand, they might stick to it for a pretty long time.

• Even if Peacocks do not have a high income, they strive to get qualified products.

Positioning Plan of the brand.

Positioning is a great marketing strategy through which the company gets a chance to emphasize its advantages and create an image of the company’s offerings in customers’ minds.

Adidas cares about its customers a lot, and that is why some of the core values of this company are diversity, integrity, performance, and passion. By designing and selling qualified products and having quick service and long experience, Adidas positions itself as a leading sportswear brand and tries to increase its credibility.

The company sees itself as a brand for people who want to succeed and become great football players, athletes, etc. This strategy makes people believe that one of the ways to victory is having Adidas products on. That is the reason why this company’s campaigns are mostly encouraging and motivational (e.g., “Nothing is Impossible,” “Calling All Creators,” etc.).

As Adidas does not stop working on the quality, uniqueness of its product and tries to satisfy its customers through fast, attentive, and upbeat service, that is why at present, it is considered to be one of the brands that sets standards for the rest of the market.

Now, let’s move on to the Marketing Mix of Adidas

The marketing mix is a widely accepted framework that seeks to define strategies that each company uses to achieve its goals. This paragraph focuses on the 5 Ps of the marketing mix- Product, Pricing, Place, Promotion, and People. All of these have a vital role in the growth and success of this famous company. 

Product

Throughout the 72 years of its existence, this leading sportswear and goods brand company has always strived to provide its customers with the most comfortable and nice-looking products. The company is known for having different kinds of sportswear products.

The main product of the company is shoes. These shoes are available in various designs and types. For example, Adidas has running and lifestyle shoes, soccer shoes, and other shoes made for tennis, cricket, basketball, golf, volleyball, lacrosse, gymnastics, rugby, baseball, skateboarding, kabaddi, and what more.

Adidas also produces apparel and various accessories. Apparels include T-shirts, jackets, sweatshirts, shorts, etc. All of them are in high demand, as they are futuristic and can satisfy all the desires of customers. When it comes to accessories, Adidas produces watches, sunglasses, sports bags, caps, socks, etc., and it also has deodorants, perfumes, aftershave, and lotions..

This leading sportswear manufacturer also collaborates with various celebrities and launches exclusive and limited products. As a pattern, Adidas Yeezy Boost sneakers that gained considerable popularity among its customers resulted from collaboration with Kanye West, a famous rap artist.

Pricing:

The company uses two main strategies of pricing: skimming and competitive.

Adidas uses a skimming pricing strategy when the product is just launched and is sold at a pretty high price because of its uniqueness. The company prefers this strategy because it knows that some customers are ready to pay a high price for the product, as the quality always justifies the price.

Through this strategy, Adidas also focuses on one of its target segments- premium customers. These premium customers always want to be different from the crowd; hence they prefer unique products.

When the product is in the market for a long time, the price gradually decreases (not much), and the company starts using a competitive pricing strategy. This means that the prices are set according to the competition.

However, it is equally important to note that Adidas chooses high-end consumers and upper-middle-class as their target audience. Hence, the company rarely reduces its products’ costs as it affects the brand’s equity. Moreover, psychologically, consumers conclude that the higher price is the guarantor of better equality.

Place

Place and Distribution of certain products play a significant role for the company. When it comes to Adidas, the company uses both offline and online platforms to promote its products. Specifically, Adidas makes its products worldwide available through franchises, merchandise, online retails, stores, etc.

Adidas has some exclusive stores that get the materials directly from the company. A lot of multi-brand showrooms also have Adidas’ products in stock, and in most cases, they get it from the distributors

As online shopping is extremely developed nowadays, Adidas also distributes its products via online mediums or fashion stores, such as myntra.com. Obviously, the company also has its own online medium adidas.com .

Through all these various channels, Adidas makes its products available for the world population.

Promotion

An effective promotion influences people and is one of the common ways of “collecting” customers.

Adidas promotes its products through various mediums, such as TV, social media, billboards, etc. The company is known for having extremely creative, entertaining, and memorable ads full of energy. These commercials help Adidas attract more customers toward the brand by sending the right marketing message.,

As a pattern, several years ago, the company included famous personas in their commercial, such as David Beckham, Muhammed Ali, Adi Dassler, etc. During the ad, these people were showing some fears that they eventually overcame.

The commercial’s tagline said, “Impossible is nothing,” which encouraged and motivated many people not to give up and always strive for their dreams.

Another advertising strategy is done through sponsoring top teams, such as Real Madrid, the national football teams of the UK, France. Simultaneously, the company also uses product placement as a method of promotion. The popularity of the brand increased when famous sports players started wearing Adidas products.

So, all the strategies mentioned above seek to make every person have the company’s name in their minds.

However, it is equally important to note that in some cases, a fifth P can be added to this list-People.

However, it is equally important to note that in some cases, a fifth P can be added to this list- People.

This mix is about both the people who work for Adidas and the people who use Adidas products.

As a legendary manufacturing company, Adidas understands that the number of customers would decrease if their workers do not create communication between customers. That is why the company trains its workers with specific techniques that help them to build communication between the users.

Adidas also has people who work at retail stores and are always available to answer any questions and help customers decide which product and size would be the best for them. In addition, as the company gives huge importance to high-quality, it also has specialists who work with suppliers and choose the best raw materials.

To conclude, the main focus of this article was the segmentation strategy of the leading brand Adidas. Specifically, this post gave special attention to its target segment, positioning plan, and marketing mix, as these are key factors for the company’s success. I hope you could find answers to your questions related to this brand.

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