Topic > A Business Review of Adidas Running Shoes

Adidas Running ShoesAdidas is an international company based in Germany. It is responsible for the design and production of sportswear, such as shoes, accessories and clothes (adidas-group.com, 2014). In Europe, Adidas is the largest sportswear manufacturer, while globally the Corporation is the second largest sportswear manufacturer. Sports shoes produced by Adidas include running shoes, golf shoes, and soccer shoes, to name a few. This essay, however, will focus on Adidas running shoes. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Adidas running shoes are durable, multicolored shoes, produced in large quantities and distributed worldwide in specific chain stores. These shoes are made from different materials, from synthetic leather to refined leather. Engineered elastic mesh is used to make the shoe's mesh technology, allowing the shoes to become more breathable and durable. The shoe is also more comfortable (runningshoesguru.com, 2015). The sole of the shoe is traditionally made of foam but recently Adidas has added the Springblade design. This new design incorporates foam microspheres into the sole of the shoe. Microfoam beads ensure the shoe has a more responsive feel than its predecessors. This new development ensures the comfort of the shoe in a wide range of seasons and temperatures. Runners or joggers who travel to different parts of the globe or train on different terrains will benefit from the comfort of this shoe (runningshoesguru.com, 2015). Although Adidas is the world's second-largest sportswear manufacturer, its market share has been relatively declining since 2011, where it held a 9% footwear market share in the United States. The company's sales have increased significantly over the years. In 2015 alone the company achieved a net turnover of 16,915 million euros. The company was overlapped by Nike, which has a 48% footwear market share in the United States (highsnobiety.com). On the bright side, Adidas footwear sales have gradually increased over the years. More and more people became aware of the brand, and thanks to the intense advertising and support from superstars, more and more people wanted to buy the footwear brand. In 2000 Adidas sold running shoes worth 5,835 million euros. In 2001, sales increased to 6,112 million euros. In 2002 there was an increase to 6,523 million euros. In 2003, it began to decline. They were 6,267 million euros. 2004 saw another drop in sales to 5,860 million euros. Sales increased slightly in 2005 to 6,636 million euros. The year 2006 recorded a notable increase in sales to 10,084 million euros. In 2007 the turnover increased slightly to 10,299 million euros (statista.com). In 2008 there was another slight increase in turnover to 10,799 million euros. In 2009, turnover fell slightly to 10,381 million euros. Sales returned to growth in 2010 with 11,990 million euros. In 2011, sales continued to increase and reached 13,322 million euros. In 2012, sales of Adidas running shoes reached 14,883 million euros. In 2013, sales decreased and stood at 14,203 million euros. The year 2014 saw a slight increase in sales to 14,534 million euros. 2015 saw the highest sales for Adidas running shoes so far, reaching 16,915 million euros (statista.com). Different age groups buy shoesAdidas running shoes. However, people between the ages of 45 and 64 hold the highest percentage of the consumer group, with 23.6% of the market share (www.adidas.com). These are the middle-aged ones. At this age, the body's metabolism slows down, so people resort to strenuous exercise to keep it under control. They will therefore look for the best sportswear for daily running or jogging. Adidas allows popular sports teams to endorse their products. Some people in this age group are also fans of these teams and will purchase the running shoes after seeing their favorite players wearing these shoes. The largest group of people who buy Adidas running shoes are men, who make up 83% of the total consumer market. This is mainly due to the fact that in today's world more men than women are involved in sports. There are also more famous and popular men's than women's sports teams, so more men support Adidas running shoes than women. Another reason why men have the highest percentage of Adidas running shoe consumption is because, for each event, women find it necessary to have different types of shoes. Women can have various types of shoes for casual wear, travel, office, event or just going out. Men, however, may not feel the need to change their footwear for every occasion they find themselves in. Men can have the same type of shoe that covers for many occasions. According to Oxfam Australia, Adidas' main goal is to lead the sports footwear industry. To achieve this, they use marketing strategies to fuel business development in both established and emerging markets. Adidas understood that greater consumer experience is needed to achieve success. In light of this, Adidas has focused more on marketing in geographies with the broadest consumer experience. It has decided to invest more in its running shoes, particularly in the USA, Russia and China as these are the areas with the highest profitability and growth in the medium to long term. As a result, they are also the top locations with the best and broadest consumer experience geographically. Compared to all this, these markets should also be expected to offer the highest “attack” or competition (Oxfam Australia, 2011). However, the main question is: how did Adidas manage to create such a great consumer experience in the market? geographical areas mentioned above? (Bloomberg.com) First it should be noted that Adidas sells its products all over the world. For example, major promotional moves such as partnerships with internationally recognized sportswear (e.g. NHL, UEFA, NBA, FIFA and NFL). In our case, the most significant partnership was with the 2011 Berlin Marathon where Adidas worked with athletes to provide running shoe services for all track events. China, Russia and the United States have popularized Adidas running shoes due to increased levels of participation in track events, poor eating habits leading to an obese nation requiring regular exercise, in our case running and/or jogging be part of it (Popular Mechanics, 2004). Enough said about geographic consumer experience: It's important to explore the success of Adidas running shoes from a family experience perspective. According to the annual report, it has been statistically proven that the largest consumer experience in terms of a household's income is located in Western Europe, which generates 25% of the company's retail business. North America follows closely behind, with 21% of incomeaverage household of fifty thousand dollars, which makes it largely manageable. China, Russia and Latin made up the rest of the percentage, with other businesses making considerable contributions (Annual Report, 2012). Currently, Adidas has one hundred and thirty franchised outlets in Beijing and many more around the world (Dubai News). Of all these global initiatives, there is none that has the highest percentage of consumer experience like that of Santilun, Beijing. This is not only because it is the largest Adidas outlet, but also because it has exceptional facilities and services. The technology is up to date, combined with the latest consumer products and great customer service. In particular it is the large surface area that allows for customer adventure and exposure to the luxury brands that Adidas has to offer. According to the latest statistics, customer satisfaction and experience stands at 82%, while management aims to achieve a record of 90%. It is correct to assume that the large Chinese market population, its significant economic power and a population enjoying a good average annual per capita family income are the main factors for the good reception of Adidas' customers, especially in the Santilun store (Adidas Giants. com). The large and leading European demand for Adidas shoes also helps drive the extensive customer experience. Adidas is based in one hundred and sixty countries with an annual production of six hundred and sixty million product units generating fifteen billion euros (all data according to 2014/2015 statistics). As a result, Western Europe, especially Germany, owns or rather controls the largest percentage of consumption units by store type. It is important to note and remember that Santilun in China recorded the highest customer experience, but when it comes to consumption units, Western Europe can be called the linchpin. The question we ask is: how does Western Europe achieve this? First of all, it must be considered that Western Europe is made up of many countries (e.g. Germany and Russia), which makes it a large and considerable market. According to Marxe Wolfe, most Western European countries are major economic powers. Of the six hundred and sixty billion units produced, Western Europe controls twenty-five percent of the production units (Marxe Wolfe Contemporary Art, 2010). This is approximately one hundred and seventy billion production units per year. Adidas' main marketing strategy is through its unique branding featuring three parallel bars. This has allowed it to have a significant percentage of consumer units per brand categorically in the larger parts of Europe. While it is difficult to provide brand statistics per unit of figures, it is much easier to do so based on monetary value. Take for example its partnership deal with NBA, NBDL AND WNBA which was estimated at over four hundred million US dollars for an apparel deal. However, its consumer brand, as previously mentioned, comes from Europe due to its major partnerships and sponsorships of major clubs. , for example Real Madrid, Bayern Munich, Juventus, Marseille, Ajax, Benfica, Lyon, Manchester United and FC Goa. Distinctively it does not stop there, but also goes ahead to make itself known through the national teams of Germany, Sweden, Argentina, Wales, Spain, Colombia, Mexico, Japan, Russia, Denmark, Venezuela and Paraguay. Adidas also sponsors many notable players such as Steven Gerrard, Lionel Messi, Paul Pogba, Xavi, Arjen Robben, Angel Di Maria and Manuel Nuer. The most significant consumer branding experience carried out by Adidas was the sponsorship of the Manchester United kit for the record sum of seven hundred and fifty - 140$•!