Adidas Brand Case Study
Adidas: Brand Case Study
Company Background:
Adidas was founded in 1949. Adolf Dassler was the founder, hence the name “Adidas”. Dassler passed away in the 1980’s and his family carried on the business. However, in the 90’s, new CEO Robert Louis-Dreyfus switches the philosophies of the company from a manufacturing & sales company to a marketing company. The company then went public in 1995. Then in 2000, an ambitious Growth and Efficiency program is initiated. In 2005, the Solomon group sold the company to Amer Sports. This led to a refocus on its core strengths of athletic footwear and apparel. Following this sale, they decided to expand and acquired Reebok in 2006. In 2011, Five Ten (a leading brand in the technical outdoor market) was also acquired by Adidas Group.
Updated Financials:
Here is a breakdown of the financials of Adidas for the last 5 years (broken down by millions of Euros):
2008
2009
2010
2011
2012
Net Sales
10,799
10,381
11,990
13,322
14,883
Gross Profit
5,256
4,712
5,730
6,329
7,103
Gross Margin
48.7%
45.4%
47.8%
47.5%
47.7%
Brand Equity Strategies:
There are 5 performance benefits of the Adidas brand that are heavily emphasized: Faster, Stronger, Smarter, Cooler, & Natural. They have also completed some specified brand strategies per sport. Football is expanding its strong market position, Basketball is increasing its global footprint, and Running is building credibility with high profile athletes.
Market Share:
Adidas has a 4.4% market share of the Global Athletic Apparel market as well as an 8.6% share of the Global Athletic Shoe market.
Competition:
Adidas has a few strong direct competitors. Nike is their biggest competitor, and is leading the market share of the industry. They also have strong competition from Under Armour, Callaway, and Puma.
Sources of Brand Equity:
Adidas has some strong brand equity. They are currently rated the #15 best global brand by Interbrand, and they are especially having
Company Background:
Adidas was founded in 1949. Adolf Dassler was the founder, hence the name “Adidas”. Dassler passed away in the 1980’s and his family carried on the business. However, in the 90’s, new CEO Robert Louis-Dreyfus switches the philosophies of the company from a manufacturing & sales company to a marketing company. The company then went public in 1995. Then in 2000, an ambitious Growth and Efficiency program is initiated. In 2005, the Solomon group sold the company to Amer Sports. This led to a refocus on its core strengths of athletic footwear and apparel. Following this sale, they decided to expand and acquired Reebok in 2006. In 2011, Five Ten (a leading brand in the technical outdoor market) was also acquired by Adidas Group.
Updated Financials:
Here is a breakdown of the financials of Adidas for the last 5 years (broken down by millions of Euros):
2008
2009
2010
2011
2012
Net Sales
10,799
10,381
11,990
13,322
14,883
Gross Profit
5,256
4,712
5,730
6,329
7,103
Gross Margin
48.7%
45.4%
47.8%
47.5%
47.7%
Brand Equity Strategies:
There are 5 performance benefits of the Adidas brand that are heavily emphasized: Faster, Stronger, Smarter, Cooler, & Natural. They have also completed some specified brand strategies per sport. Football is expanding its strong market position, Basketball is increasing its global footprint, and Running is building credibility with high profile athletes.
Market Share:
Adidas has a 4.4% market share of the Global Athletic Apparel market as well as an 8.6% share of the Global Athletic Shoe market.
Competition:
Adidas has a few strong direct competitors. Nike is their biggest competitor, and is leading the market share of the industry. They also have strong competition from Under Armour, Callaway, and Puma.
Sources of Brand Equity:
Adidas has some strong brand equity. They are currently rated the #15 best global brand by Interbrand, and they are especially having