Company and marketing environment

Adidas

During many years, the two largest groups of sports clothing and accessories worldwidely Nike and Adidas have competed together severely to achieve the No.1 provider. Nike still remains the No. 1 world, however, since Herbert Hainer became a Chairman of Adidas Inc, a change seems only a matter of time.

Adidas was founded by Adof Dassler since 1920 but the name and the global brand Adidas just have appeared from 1948. Adidas Group produces and supplies almost all products related to sport with many factories located in many different countries.

Annually, Adidas designs and launches to the customer over 600 different models of sport shoes and about 1,500 samples of clothing, uniforms, athletics sports. In fact, sports shoes is still the first priority. In 2004, Adidas reached the production and consumption peak at 110 million pairs sport shoes of all kinds.

Not only is the name Adidas well-known but Adidas logo with 3 scratch parallel simple has also become the symbol of a famous sports brand with the highest level. The Adidas products are now sold in 160 countries in the world.

Competitive structure of Adidas is clealy seen as monopolistic competition..Adidas ambition is to be the world largest sport shoes and equipment all over the world. And now its biggest competitor is Nike.

About the competition role of Adidas:

• The market leader:
• .The innovative leader of marketing
• .Have highly valued brands, good image.
• .Not be obsolete.

Competitive advantages:

Wide range of products..well-designed models..good quality. Using multi segmentation strategy..from children to adults are not so hard to choose the fit one for them.

Macro marketing environment:

Brand name Adidas used to be a No. 1 world sport brand more than two decades. But in the 80^th decade , it was for Nike. Since then the competition in the market between Adidas and Nike is like the war of two love rivals…very severe.
Both seek to bring new technology, improve quality to increase the price, Herbert Hainer has simultaneously sought to reduce cost. Government, business management distribution was reformed by Herbert Hainer to be more effective. He also strongly implemented reformation with the slogan: better, faster and easier.

Production systems and storage with high costs in Europe have been significantly streamlined to reduce costs. Many new partners has been found, many production facilities in Asia and Latin America have been established or expanded in size. Even number of members of the group's leaders are also restructured.
In 2002, the first year under the management of President Herbert Hainer, Adidas achieved the best business results in the history of corporations. Sales increased to 6.5 billion Euro. Profit increased 10% compared with the highly considered results of the previous year.

Adidas plans to transfer a part of the factory sport shoes from China to countries with lower skills, including Cambodia, Laos and Vietnam. According to the Manager Board of Adidas, 50% sport shoes of its brand are manufactured in China. Adidas have also opened thousands of shops sport shoes in this country. However, increased cost to the employees to nearly 20% in first six months in 2008 in cities in China, Adidas must think of the direction of moving their factories to countries with cheaper labor cost than .
Recently, Adidas has inaugurated factory production of the first sport in India. And production strategy led to this, Cambodia, Laos and Vietnam is becoming the first choice for investment workshops instead of the Adidas factory in China.
In addition, there is a probability of establishing the production line of Adidas products in the former Soviet Union and Eastern Europe.

Recently, there are more than 3,000 employees working in two centers of Adidas, at HQ in Herzogenaurach (Germany) and in Portland, Oregon (USA). Adidas-Salomon AG has about 13,000 employees worldwide. A team of designers and developers and product experts on the technology and materials to conduct research in Portland and at the second technology center of Adidas in Scheinfeld near Nuremberg.

Micro marketing environment:

Each season Adidas turn out the market about 600 types of sports shoes and other goods brought in 1500 embroidery decorating different Adidas. In 1999 Adidas sold over 80 million pair of shoes and more than 150 million shoes clothing hat and tool around the world. Products such as shoes sport socks, uniforms, equipment and all kinds of bags such as soccer and now is sold on 160 countries. About 100 branch companies, joint venture and license points ensure represents Adidas products worldwide. The distribution and sale of Adidas is classified into 5 Regions across the World: Europe, Africa, North America, Asia / Pacific and Latin America. Today, Adidas is the largest provider of European shoes, socks and sports clothing.

1.Try to create the unique products of shape and quality.

Adidas focused on building a laboratory of technique and new materials in order to constantly improve, enhance the quality of product and create attractive designs as well. Manufactures have successfully implemented some significant breakthrough by using shark-skins for the interior part of shoes and kangaroo-skins for the exterior part. They always put new improvements in the production to bring the convenience to all athletes

2. Of consumption, manufacturers have combined smartly product consumption and advocacy advertising.

Adidas has paid great attention to the sporting events internationally. At the Sport International in Montréal (Canada), they have announced a news very attractive: 82.8% of the athletes won medals used clothing and sports equipment manufactured by Adidas. And after that, sales of Adidas have reached one billion U.S. dollars.

Adidas has spent 80% of the total advertising costs for the type of live ads, ads by athletes performances, and only 20% for media advertising..on television, radio.

To maintain the position achieved on the international market, Adidas has a variety of products, not only produce sport shoes, but also produce clothes, all football, soccer and tennis rackets and various kinds of bags for the athletes.

Koobinaldo..Kop.