Adidas AG is an apparel and sportswear German multinational brand. Adidas began operational in 1924 and rebranded its name as Adidas AG in 1949. Today, we’ll discuss the Ansoff matrix of Adidas; its four growth matrix strategy analysis quadrants; market penetration, product development, market development; and diversification of Ansoff matrix business examples of sportswear brands.
Marketing Penetration Campaigns of Adidas
- Collaboration with fashion desginers
- Sponsoring mega sporting events
- Brand endorsements of sports celebrities
- Social media memes and posts
- Digital media channels
- TV, Sports magazines and other traditional media channels
Top Selling Markets and Geographical regions of Adidas in terms of Growth Rate
- Asia pacific – 11%
- China – 15%
- North America – 25%
- Europe, Middle East, & Africa – 39%
Latest, Upcoming, and Best Selling Collection of Adidas
- Gazelle Shoes
- Adelette Slides
- Wensley Low Trainers
- Crazy IIINFINITY Shoes
- Predetator Elite FT Boots
The Ansoff matrix of Adidas would analyze the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification growth strategy. Here are Adidas Ansoff matrix company examples as follows;
Ansoff Matrix of Adidas
Let’s discuss the four growth matrix strategy analysis quadrants in the Ansoff matrix of Adidas as Ansoff matrix company examples; they’re as follows;
Market Penetration Strategy of Adidas
The market penetration quadrant in the Adidas Ansoff matrix business example as growth matrix strategy analysis has the lowest risk level in the growth strategy. It is because here the German sportswear brand sells its current products and services in the existing customer market. However, the sports market is growing, and the market penetration growth strategy is possible.
I-Celebrity Endorsements
Adidas collaborates with the world’s leading celebrities and mega superstars for the promotion of its sportswear and apparel products. It helps the brand to maximize its market and brand reach and further penetrate the market with its existing product portfolio. However, some of the top celebrities that have promoted the brand are as follows;
- Virat Kohli, Indian Cricket Team Captain
- Pharrell Williams
- Karlie Kloss
- Jonah Hill
- Beyonce
- Ranveer Singh, Bollywood Actor
II-Marketing Campaigns
Adidas runs aggressive marketing and advertisement campaigns for the promotion of its existing sportswear products to the current customer market. It helps the company to offer the existing portfolio to the new segments of the customer market.
III-Sponsoring Events
Adidas has sponsored various mega sporting events over the years. Sponsorships of the world’s sporting events help the company to amplify its market reach at the global level. Some of the main events that the company has sponsored are as follows;
- ATP Tennis Tournament
- UEFA Champion League
- Major League Soccer
IV-Strong Brand Image
Adidas has established a strong brand image in the sportswear and apparel manufacturing industry. It helps the company to penetrate the existing customer market and offer its current products to the customers.
Market Development Strategy of Adidas
The market development quadrant in the Adidas Ansoff matrix business example as growth matrix strategy analysis has a bit higher risk level than the market penetration strategy. It is because here you expand your sportswear and apparel market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.
I-Market Expansion
Currently, Adidas is operating its business in over 160 countries across the globe. The sportswear brand is entering new markets and new geographical regions to offer its existing product portfolio to the new segments of the market as a part of its market expansion strategy.
II-New Strategic Approach
Adidas pays heed to customer feedback and uses it in its marketing strategy. The focus of the sportswear brand is to repair its marketing strategy in the struggling markets. However, the brand employs innovative methods to promote its products to new customers.
Product Development Strategy of Adidas
The product development quadrant in the Adidas Ansoff matrix business example as growth matrix strategy analysis has higher risk than the market penetration strategy. It is because here you launch a new product service in the apparel and sportswear line for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.
I-New Product Development
Adidas invests a significant amount of capital resources in research and development to develop new designs and styles for the customers. The objective of the sportswear brand is to gain a competitive edge with its unique offers. However, some of the new products of Adidas are as follows;
- Boston Marathon Celebration Jacket
- Ozweego shoes
- Pureboost 23 Running Shoes
II-Product Variants
Along with developing new sportswear products and services to the customers; Adidas also manufactures new product variants of the running product lines. Launching new product variants helps the company to update and upgrade its existing products and services based on customer feedback and reviews.
Diversification Strategy of Adidas
The diversification quadrant in the Adidas Ansoff matrix business example as growth matrix strategy analysis has the highest risk rate of growth strategy than all three previous growth strategies. It is because here you launch a new sportswear product or service in a new customer market. You won’t know how your new market will react to the new items.
I-Horizontal Diversification
Adidas has successfully expanded its customer market and product portfolio over the years by launching new sportswear products and services. It helped the company to become a global mega sports brand and offered a wide range of products and services to the customers.
Conclusion: Adidas Ansoff Matrix Company Examples | Growth Matrix Strategy Analysis
After an in-depth study of the Ansoff matrix of Adidas; we have realized that Adidas is the world’s leading sportswear and apparel brand. If you are learning about the Adidas Ansoff matrix company examples; then you should keep in mind the abovementioned four growth matrix strategy analysis quadrants; market penetration, product development; market development, and diversification.
References
- https://strategicanalysishub.com/porters-five-forces-of-adidas/
- https://www.encyclopedia.com/books/politics-and-business-magazines/adidas-group-ag
- https://digitalbrandblueprint.com/adidas-brand-profile/
- https://forest500.org/rankings/companies/adidas-group
- https://www.macrotrends.net/stocks/charts/ADDYY/adidas-ag/number-of-employees
- https://swotandpestleanalysis.com/swot-analysis-of-adidas/-0
- https://en.wikipedia.org/wiki/Adidas
- https://www.britannica.com/topic/shoe
- https://strawpoll.com/most-popular-adidas-product
- https://www.statista.com/statistics/312049/adidas-leading-products-in-the-uk/
- https://www.adidas.com/us/best_sellers
- https://strategicanalysishub.com/bcg-matrix-of-adidas/
- https://www.adidas-group.com/en/sustainability/transparency/supplier-lists/
- https://www.adidas-group.com/en/sustainability/social-impacts/supply-chain/
- https://procurementmag.com/articles/how-adidas-manage-their-supplier-relationships
- https://www.go4worldbusiness.com/find?searchText=adidas&BuyersOrSuppliers=suppliers
- https://www.alibaba.com/adidas-suppliers.html
- https://supplychaindigital.com/digital-supply-chain/inside-adidas-supply-chain
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