Case Facts
Adidas had been the world leader in sporting goods up until the early 1990s when the company took a drastic turn, falling to third and finding the company in an uphill battle against behemoths Nike and Reebok. Adidas struggled to firmly plant their brand in the U.S. and to define their company strategy in terms of market segment, and product focus. To capitalize on the opportunities presented by adding a new CEO, Louis-Dreyfus, Adidas would need to leverage his expertise interest in challenges to overcome the 100-million-dollar deficit they currently had.
The above graph highlights the state of the market, and Adidas’ steady decline in the U.S. market through the mid-80’s; the precise deficit Louis-Dreyfus would need to overcome. …show more content…
When looking at both Nike and Reebok, each company had defined niches in the U.S. market, which were allowing them to compete against each other in overall revenue generation without necessarily going head-to-head. Nike had control of the basketball, football, and baseball markets through aggressive marketing and sponsorship deals. “On average, Nike’s advertising budget accounted for an estimated 10% of sales (or $180 million) .” (Adidas case study) - case Reebok chose to focus on the fitness/trendy shoe market, which was appealing to new segments of the sports footwear market including women and teens. Their overall advertising budget in the U.S. was $85 million. As these companies gained momentum, it was critical that Adidas change their view as a commodity item and generate interest from younger …show more content…
it will be important to embrace strategies aimed at the United States consumer. First, it is important to increase and change their marketing strategy in the U.S. Overall, the company needs to increase marketing budget and change their overall focus towards more visible sponsorship opportunities in more prominent sports. Their traditional endorsements of national sporting associations does not attract the younger generations the way athlete endorsements had for Nike. Additionally, Soccer is not as popular in the U.S. as Europe, highlighting the struggles of Adidas in the market and dominance within other countries. Involvement in basketball, baseball and football will increase visibility and attraction of young customers, which will enhance brand loyalty throughout the lifetime of the
Adidas had been the world leader in sporting goods up until the early 1990s when the company took a drastic turn, falling to third and finding the company in an uphill battle against behemoths Nike and Reebok. Adidas struggled to firmly plant their brand in the U.S. and to define their company strategy in terms of market segment, and product focus. To capitalize on the opportunities presented by adding a new CEO, Louis-Dreyfus, Adidas would need to leverage his expertise interest in challenges to overcome the 100-million-dollar deficit they currently had.
The above graph highlights the state of the market, and Adidas’ steady decline in the U.S. market through the mid-80’s; the precise deficit Louis-Dreyfus would need to overcome. …show more content…
When looking at both Nike and Reebok, each company had defined niches in the U.S. market, which were allowing them to compete against each other in overall revenue generation without necessarily going head-to-head. Nike had control of the basketball, football, and baseball markets through aggressive marketing and sponsorship deals. “On average, Nike’s advertising budget accounted for an estimated 10% of sales (or $180 million) .” (Adidas case study) - case Reebok chose to focus on the fitness/trendy shoe market, which was appealing to new segments of the sports footwear market including women and teens. Their overall advertising budget in the U.S. was $85 million. As these companies gained momentum, it was critical that Adidas change their view as a commodity item and generate interest from younger …show more content…
it will be important to embrace strategies aimed at the United States consumer. First, it is important to increase and change their marketing strategy in the U.S. Overall, the company needs to increase marketing budget and change their overall focus towards more visible sponsorship opportunities in more prominent sports. Their traditional endorsements of national sporting associations does not attract the younger generations the way athlete endorsements had for Nike. Additionally, Soccer is not as popular in the U.S. as Europe, highlighting the struggles of Adidas in the market and dominance within other countries. Involvement in basketball, baseball and football will increase visibility and attraction of young customers, which will enhance brand loyalty throughout the lifetime of the