ADIDAS

Manal SAFIDINE
Imane Jiraoui
 Plan
Brand presentation
History
● Analyze PESTEL
● SWOT Analysis
THE 5 FORCES OF PORTER
Brand presentation:
The German giant, with the iconic 3-striped and 3-clover logos, is
the main sportswear company that sells clothing,
shoes and sports [Link] in more than 160
countries in the world, joining Nike and Under Armour as the trinity of
global sports goods companies. Adidas AG owns Adidas andReebok
markets and distributes products under these two brands through 2,500
stores around the world and a franchise network. While Adidas is
focus on popular sports, such as soccer, American football,
basketball, running, training equipment, Reebok is
specialized in sportswear and targets sports enthusiasts. 90 %
The sales of Adidas AG consist of products branded Adidas.
Footwear is the largest product segment of Adidas, generating approximately
60% of sales. The clothing segment contributes 35% and the 5%
remaining are occupied by sports equipment.
 Logo

World-renowned under the name:

the brand with the three stripes, in relation
with its logo, three stripes that cross
horizontally a three-leaf clover,
symbol of the group's diversity,
three main land masses and
three main markets of the group
(Americas, Europe/Africa and Asia).
 History:
1924: The company was founded in Germany by brothers Adolf and Rudolf Dassler.

They first named the brand Dassler Shoes, which began to gain popularity thanks to athletes.
sponsored at the Olympic Games.

1948: Brother Rudolf decided to create his own company Puma.

1949: Adolf Dassler changed the name of his company from 'Dassler shoes' to Adidas.

ADI = ADOLF

DAS = DASSLER
1950 - 1970: •Use of rubber and nylon instead of steel
and leather.

Creation of football shoes adapted to conditions

unfavorable weather conditions such as snow.

The German national football team outfitted by Adidas is

became world champion for the first time. Shortly after
after this victory, the sale of Adidas football shoes is
increased from 800 pairs to 2000 pairs per day.
Telstar, the Adidas ball became the official ball of the World Cup
World in Mexico 1970.
 The crisis years 1978-2000:

1978: • The death of Adolf Dassler and the management of the company passes to his widow Katarina. With the death of the
founder, a crisis began in the company.

1980: • The emergence of serious competitors.

Nike and Reebok launched aggressive advertising campaigns in North America. By the end of the
decade, these brands represented 50% of the sports shoe market in the United States, while
that Adidas's share had dropped to 3%.

Katarina died in 1984 and Horst Dassler, the son of Adolf and Katarina, passed away in 1987.
In 1989, the remaining heirs sold 80% of their shares for 1,600 million francs (approximately
243.9 million euros today) to the French politician and entrepreneur Bernard Tapie.
The man decided to relocate production to Asia.
In 1992, unable to pay the interest on the loan, Tapie instructed Crédit Lyonnais to sell Adidas.
In February 2000, Crédit Lyonnais sold Adidas to Robert Louis-Dreyfus for 4,485 million francs.
equivalent to 683 million euros.
From the 2000s to today:

In 2000, the company acquired the Reebok brand. After that, it became
one of the most renowned companies in the fitness market. Adidas has
achieved a record turnover of 19 billion euros in 2016, which is a
14% increase compared to the previous year.
Concerned about diversifying its market, Adidas has positioned itself these
last years as a brand of shoes, clothing and
casual style accessories, combining sport and elegance.
With collaborations signed by Kanye West and Rita Ora, the company is
reaffirms itself as a leading brand in terms of trends and
technology.
Analyze PESTEL
 POLITICS

Adidas is a group enjoying a global presence in terms of

of commercial and production implantation. He must therefore cope with

the policy of its host countries, which must be healthy and stable for

do not tarnish the group's activity.

ECONOMIC

Adidas is in formidable financial health, generating a

impressive turnover and making a profit that allows

to see the future with an investment capacity and

serious development always.

However, the competition is tough, once again internationalized.

with groups as big (as aNikeor a Puma)

SOCIOLOGICAL

The models of adidas shoes and clothing respond

to the latest trends.

Adidas focuses primarily on the sporting and athletic clientele.

Adidas must promote its products in Islamic countries

TECHNOLOGICAL

Adidas uses its own technology to manufacture products.

use their online sites well to sell products.

 ECOLOGICAL

Adidas has already released shoes in

recycled plastic, and works towards a

textiles conçus à cause aux déchets
found in the seas.
LEGAL

Global group, Adidas is subject to jurisdictions and

taxation of its places of sale and the States that
welcomes its factories in Asia. The legal factor
is therefore very influential in its activity.
SWOT Analysis
 Forces

A strong brand awareness and a significant marketing budget

allowed Adidas to conclude important contracts of
sponsoring with sports teams and athletes.

Innovative and high-quality products maintain the

Adidas sales at a high level and affirm its position among the
competitors.
 Weaknesses

Adidas's global sales rely too much on the segment of

shoes.

Fewer brands under management limits Adidas's capabilities in

brand positioning material in relation to Nike.
 Opportunities

Many opportunities on digital platforms for sales

and customer engagement.

Focus on penetrating the North American market to catch up

Nike in terms of sales and market share, which are relatively
weak compared to other regions.
 Threats

Environmentally conscious consumers are on the rise and this could

force Adidas to innovate more in its products to reduce waste and
encourage recycling.

Adidas lost its 3-stripe design in the EU after the EU General Court
judged that it was not distinctive enough in 2019.

The company states that "this decision is limited to this specific implementation of
the three-stripe brand and does not affect the wide range of protection enjoyed
adidas on its famous three-stripe brand in various forms in Europe.
The Court of Appeal awaits, the design of Adidas may be subject to imitation.
 THE 5 FORCES OF
PORTER :
 Bargaining power of suppliers:

As a leading company in sports products, Adidas must

so define the rules of the game including the quality standards of the
labor and products, the suppliers are then required to comply with it.
conformer.
In order to ensure that suppliers comply with the standards, Adidas has
maintain a monitoring and enforcement process at multiple levels
levels. In this way, Adidas has a high level of control over
its suppliers.
Distribution of suppliers of the German group Adidas in 2017, by
geographical region :
 Bargaining power of customers/buyers

The bargaining power of the consumer is relatively weak in this sector where
individual customers look for products that are essentially standardized and do not
do not know the product to make a decision.

However, wholesalers who are well aware of costs and wish to buy
essentially have the highest bargaining power when the threat of switching to
the presence of other substitutes is felt. The bargaining power of buyers in the case
Adidas is weak to moderate and, even if individual buyers have no
significant influence, they exert quite an important influence as a group.

Moreover, switching costs are low for customers. However, this factor
is largely mitigated by the quality of the products and the marketing of
Adidas. Adidas has emphasized quality in design, marketing, and
product performance. That is why the brand has been able to retain its customers. In
As a consequence, the bargaining power of customers is reduced and is considered low.
to moderate.
Competition among major brands:
The competition between major brands: NIKE, ADIDAS, PUMA, FILA, KAPPA and others who
are strong competitors in the sports articles industry.

Each of these four brands must suspect the movements of their rivals.

One can thus say that the rivalry among competitors is strong.
 Threat of substitutes or substitution

The threat of shifting to other sports products is moderately low

with the presence of only a few brands in clothing and
sports accessories. However, Adidas is competing with all the others
substitute products, whether in the field of sports or not, the threat
to be replaced by another cheap product is relatively high. The
the threat of substitute products for Adidas is low to moderate.
competitorslocalandinternationaloffering products in a wide range
price range can thus compete with the products offered by Adidas. Some
of these competitors meet the needs of the upscale client while the
local competitors offer substitute products forlower prices.

Furthermore, the threat of substitute products is mitigated by the quality of

products and the marketing efforts of Adidas. In order to further limit the
threat of substitutes.
 New entrants

The threat of new entrants for Adidas is low to moderate.

While a brand can enter with a small capital at the local level,
developing a brand the size of Adidas requires a
very important investment that can be understood from the size
from its production and supply chain. There are several
factors requiring significant investments such as the
technology, qualified human resources, marketing, the
advertising, etc. Furthermore, we cannot build that much capital of
brand overnight. It also takes time and effort.
to create as much brand capital. All these factors moderate the
threat that any new player trying to enter the
sector.
 PRESENTATION OF NEW PRODUCT:

Our new product is simply a normal coat and sweatshirt.

as you can see in the photo a normal adidas coat, nothing new and which
does not present any novelty in the design, colors, or fabric.

But the innovation is in the three buttons that Adidas added to this simple product.

Our product is a smart coat that adapts to your body temperature and you
provides the comfort that everyone seeks in sportswear stores.

The 3 buttons are used to increase or decrease the heat as well as a third button.
where the coat can adjust the heat according to your body.

It is a very simple product but it gives you a comfort that cannot be underestimated.
.
 SEGMENTATION STRATEGY:
Which consumers to serve:
 CONCLUSION :

The sportswear market depends on marketing, variety, and

support for professional athletes.
Adidas started with the best intentions to meet the
needs of athletes and regular consumers.
The company has lost its leading position but it is now
second largest sportswear brand worldwide
international