Adidas is one of the biggest names in the sports industry, and diversified itself in apparels and footwear. It employs over 53,731 people across 160 countries, which produce over 660 million units of products annually, and generate the sales of around €14.5 billion (2014 figures). Such figures can clearly determine the success level and complexities of the Adidas Groups. Still, they are successful in keeping the things, lean, fast and simple. Adidas is the famous sportswear manufacturer across Europe, and successful in positioning itself in the minds of consumers to such an extent that everyone can easily recognize the brand by its logo. It has segmented itself on the basis of psychographic, behavioral and demographic factors. The Adidas Group owns four strong brands portfolios- Adidas, Rockport, Reebok, and Taylor made. This is mainly done to target the different segments of consumers. Its differentiated targeting strategy for targeting the youth, adults and kids along with athletes, who possess the passion for the sports and fitness is quite successful. However, mainly it targets the customers of 13-40 years, but the majority of the consumers lie between 15-30 years, who belongs to luxury class or upper-middle class (Adidas, 2018). Here is the BCG matrix of the Adidas, which helps in determining the company’s strategic position.
Cash Cows
These products have high market share but low market growth, which means they are generating the profit through sales in the current market, but does not possess the potential of more growth and expansion in the market. For Adidas, its clothing and apparels are the cash cow items, and it is necessary for the Adidas to consider this point, and position itself well in customers mind by targeting different geographic markets (Bagha, 2018).
Stars
The products which have high market share and high level of market growth fall in this category. Products are wisely categorized for this, as these items are mainly bringing the larger portion of profit in the company, but it is necessary for the company to reinvest in this category, and try to bring more innovations and creativity for retaining the position. For the Adidas group, Reebok and Adidas are the stars, as both have the stronger market share; despite of the tough competition they are facing in the fitness and sports industry, mainly its shoes. The competitors like Nike and Pume are also fighting for the large portion of the market share, are the biggest fear of the Adidas Group (Bhasin, 2017).
Question Marks
The products categorize in this, are with low market share but high market growth, which means if companies will pay more strategic attention to them, they might bring the large volume of sales for the company, and generate more profit. Taylor made and Rockport are the question marks for Adidas, as both have very low market shares but still possess the potential of growing more in the competitive market. Adidas needs to revise its strategies for turning the potential into the benefits for the strategic objective of the Group. In the product category, its Sports equipment are the question mark and it need to pay attention to this domain (Bhasin, 2017).
Dogs
These are the items with low market share and market growth, and mostly stand at the breakeven point. Hats and sunglasses of Adidas are categorized in this, because these are the less selling items of the company, and many people are not interested in spending their money in it, as they have better options in this category. Adidas is not successful in beating the competition in this range, and still struggling hard to survive in this category (Bagha, 2018).
References
Adidas, 2018. About us. [Online], Available at: https://www.adidas.com/us, [Accessed on: 29th May, 2018].
Bagha, S. 2018. BCG matrix. [Online], Available at: https://www.slideshare.net/saeedbagha/bcg-matrix-64686190, [Accessed on: 14th August, 2018].
Bhasin, H. 2017. Marketing Startegy of Adidas. [Online], Available at: https://www.marketing91.com/marketing-strategy-of-adidas/, [Accessed on: 14th August, 2018].
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