adidas Strategy
adidas has a clear mission – “to be the leading sports brand in the world”. To accomplish this mission, the brand comprises two divisions that reflect two distinct market segments: Sport Performance and Sport Style. Product and marketing initiatives at adidas primarily focus on five global priorities, which are expected to generate over 80 % of the brand’s top-line growth until 2010: running, football, basketball, training and Originals. The adidas brand attitude “Impossible is Nothing” drives all brand communication initiatives and helps strengthen the brand’s bond with consumers. With a well-defined and segmented distribution approach and a premium-price strategy, adidas clearly positions itself as a top-notch brand in all markets.
NEW BRAND STRUCTURE ESTABLISHED
In 2007, the adidas
brand continued to gain momentum – both financially
see adidas Business Performance and operationally. adidas
further
evolved its organizational structure, moving from three
to two divisions. With Bernd Wahler in Sport Performance
and Hermann Deininger in Sport Style, adidas appointed two
Chief Marketing Officers who have full ownership of their
respective
divisions. During the year, adidas not only established
the two-divisional structure on a global level but also
rolled it out in the regions of North America and Europe.
Further,
the brand appointed Patrik Nilsson as new President
of adidas North America to further strengthen its market
position
in the region.
EUROPEAN DISTRIBUTION FURTHER STRENGTHENED
In
Europe, adidas continued to refine its distribution with various
initiatives. For example, the brand extended a strategic partnership
with its key account Intersport International Corporation.
Within the scope of this cooperation, adidas offers customized
product ranges in Intersport stores in categories such as
football
and running in 32 markets worldwide. Additionally,
adidas and Intersport will continue to work closely on joint
marketing and event-related initiatives. adidas also successfully
implemented a segmented distribution strategy in the UK
see Risk and Opportunity Report and continued its strong retail
expansion in Russia.
PARTNERSHIP NETWORK FURTHER EXTENDED
adidas
further
expanded its portfolio of promotional partnerships in
2007. The brand entered into a Tier One partnership with the
London Organising Committee of the Olympic and Paralympic
Games (LOCOG), to become the Official Sportswear Partner
of the London Olympics in 2012. Brand adidas also extended
partnerships with the German, Spanish and Hellenic football
federations. In addition, the brand signed multi-year agreements
with race car driver Dale Earnhardt Jr., Texas A & M
University and the University of Michigan. In the Sport Style
division,
adidas agreed on a multi-year product collaboration
with a leading denim producer, Diesel, starting in February 2008.
MARKETING CAMPAIGNS LAUNCHED SUCCESSFULLY
With
respect to brand communication, adidas successfully launched
the newest installment of its “Impossible is Nothing” campaign
–
the largest global brand campaign ever implemented – in
over 50 countries. Late in the year, adidas also kicked off its
Olympics and global football campaigns for 2008.
INNOVATION LEADERSHIP THROUGH PERSONALIZATION
adidas’
innovation philosophy encompasses every facet of the
brand’s business – from product design and development to
brand marketing, promotion partnerships and distribution. In
this area, personalization represents a key focus. Personalized
product concepts at adidas include:
Interactive product concepts such as miCoach – a new
individual
training system to be launched in March / April 2008,
which can sense, understand and adapt to the consumer’s
needs.
Customized solutions such as the mi adidas platform or
the TUNiT football boot concept, which offer consumers the
opportunity to specify certain product features.
A broad selection of well-defined product families such
as adiSTAR, adiZero and Supernova and technologies such
as Clima,
TECHFIT™, ForMotion™ and BOUNCE™, offering
consumers extensive choice, according to their individually
defined needs and requirements.
In marketing and distribution, personalization includes providing tailor-made offerings – be it online or in stores. Personalization will be the brand’s lead innovation concept and a driving force of the adidas business going forward. It will guide all efforts in product design and development, (digital) marketing and distribution.
