Performance: Adidas generated a total of 11,990,000,000 in sales in the year of 2010. Generating a total of 5,730,000,000 in gross profit. Adidas increased their profit by 130 millions in just 4 years. They are also the second largest athletic shoe producer manufacturer in the world and the largest in Europe. In the year of 2010 Adidas made 5,389,000,000 in athletic shoe wear and 5,380,000,000 in apparel . Adidas counts with 42,541 employees.
The Adidas group states, On March 16, 2011, Adidas has been expanding to better the company. They have created a campaign leveraging the Adidas sport performance, adidas Originals and adidas Sport Style sub-brands in order to make the brand as memorable and successful as possible. Adidas expands the worlds of sport, music and fashion. Adidas has advertised known celebrities, football stars Lionel Messi and David Beckham to NBA star Derrick Rose and pop icon Katy Perry and many more. “In the past ten years we have successfully extended the adidas brand into three powerful sub-brands with adidas Sport Performance, Adidas originals and adidas Sport Style. Now we are proud to be able to show the breadth and depth of the adidas brand in one global brand campaign,” explains Erich Stamminger. Demonstrating the Adidas purpose is to become a dominant international brand and it has been successful so far due to subcontractor all over the globe. Adidas continues to make large amounts of profit by lowering their total cost and being able to sell their products for cheaper to the consumers. Adidas also is the targeted brand for sportswear which attracts most consumers to be athletes.
Strategies that Lead to Innovation: Adidas is a multinational company who has a mission to be the leading sports brand in the world. Having sparking athletic foot wear for professional athletes up to premium fashion is what drives them to competition. This allows Adidas to exploit many market opportunities as well as risks. The commitment that Adidas has to produce product innovation is a great start for growth in their company. The innovations created by Adidas target athletes that are active in sports or who simply love sports. It is broken up into different sports performance categories: football, basketball, running, training and outdoor. Furthermore, the way that they are performing is focusing on interactive growth across categories. An example of a great innovation created by Adidas is called miCoach that is the first web based personalized training service. No other brand has a more special or stronger sport connection than Adidas.
Retail Sales: Adidas is the world's second largest maker of athletic footwear, apparel and equipment by sales after Nike as of 2010. The company makes most of its money by selling at wholesale rates to large retailers such as Dick's Sporting Goods, Foot Locker, and Sports Authority. Adidas and Reebok have sought to increase profit margins by increasing retail sales as a percentage of their total sales. Adidas is an international company with roughly a quarter of its sales coming from North America. Since it targets the wealthiest segments of the market the company leads its competition in sales in Japan, Korea, India, Thailand, Indonesia, and New Zealand; these sales have an increase in growth because of its emerging markets in South America and Asia that have topped off 24% of sales in the industry making of sportswear in the competition between Puma, Nike, and UnderAmor.
Marketing: During the mid to late 1990's, Adidas had divided the brand into three main groups with each separate focus. Adidas Performance was designed to maintain their devotion to the athlete. Adidas originals was designed to focus on fashion and life-style, and Style Essentials was designed to work towards their personal goals. Adidas target market today is consumers of young teens and adults, the idea they are trying to get at customers is that when you love your game you put your all into it. Which grabs all types of athlete’s attention because of what they are trying to show their customers. For its Originals fashion brand the line accounts for 20% of Adidas sales, and the items are an average price between 70 dollars for the last several years.