Adidas is a major German sports apparel manufacturer, which was founded in 1948. It is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after Nike. The company's clothing and shoe designs typically feature three parallel bars. The company revenue for 2009 was listed at €10.38 billion. The market segmentation; targeting and position play an important role in this company. This essay will use the three factors to analyze this company.
Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first identifies different way to segment the market and then develops profiles of the resulting market segments. As market consist of many buyers, they may differ in their wants, buying attitudes and buying practices, so a seller might design a separate market program for each buyer. Adidas mainly focus on demographic and psychographic segmentation.So Adidas develops their brand in 3 different styles according to the segmentation.
Demographic segmentation refers to dividing the market into groups based on demographic variables, such as sex and age, which this method has long been used in clothing market. They branded products into range of male, female and kids, according to age and life cycle segmentation and gender segmentation, after all they can have products that can fit to almost every demographic possible. Adidas has a branded range of male and female clothing, shoes or body-care and eyewear, which all three brands of Adidas; Performance, Originals and Style also provide products for this segment.
Ppsychographic segmentation was to dividing the market into groups based on social class, life style or personality characteristics. Adidas focus on social class because people within a given social class tend to have similar buying behavior. People interest in many goods is affected by their life style and many goods they buy are expressions of their lifestyle, people who loves outdoor activities and sporty style will tends to buy Adidas products.
By using personality variables to segment markets, giving their products personalities that correspond to consumer personalities. From the fundamental marketing concepts, it is important to satisfy customers need and meet their expectations, in orders to keep royal consumer. Adidas has did a successful job in this area, because many people who are experiencers and image drivers believes that Adidas provides products which are fashionable, good looking and can be functional too. So Adidas Originals was designed to focus on fashion and life-style.
Adidas segment customers like athletes, gym regulars, sports enthusiasts, brand freaks and image seekers. Adidas often have work with different athletes, which produce products that enhance performances. Adidas Performance currently manufactures several running shoes, football kit and associated equipment, being official outfitter of NBA, golf equipments, training and more other sports.
Adidas also featured with Y-3 and Adidas NEO Label provided crossover products with different brands that customers who loves either brands would also attracted to buy their products.
Market targeting is evaluating different market segments, a company must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. (Kotler et al 2010, p277)
After evaluating different segments, Adidas adopts market coverage strategy which is differentiated marketing. For using this, Adidas decides to target several market segments, and separate offers for each. (Kotler et al 2010, p278) Thus, the company of Adidas has three different types of product for customers, which are Performance, Originals and Style.
Here is the table shows three...