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What is Special About the Pricing of Adidas?

October 15, 2022 in Editor Picks

Since Adidas consumers put a generous deal of confidence and value in its products and assistance, the brand has developed worldwide. The following article will deliver detailed information about the pricing of Adidas, the pricing strategies used by Adidas, and how it is different from its competitors.

Adidas as a Brand

German international enterprise Adidas, the world’s second-largest sportswear manufacturer, was established by Adoft Dassler in 1939. Adidas is primarily known for manufacturing sportswear, including a broad range of apparel, shoes, and accessories. The company is competent at marketing, and its rank in the international market has been cemented without a doubt. 

adidas as a brand

As an enormous and multifaceted organization working in over 100 countries, Adidas employs over 62000 people worldwide. Successful brand associates of Adidas include Reebok, TaylorMade, and Runtastic.

As we move onwards, let’s examine the strategies and pricing of Adidas. As part of its pricing strategy, Adidas utilizes a high-low model. The pricing of Adidas is typically higher than its competitors, but they use promotional discounts to make them more appealing to consumers.

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Marketing and Product Strategies of Adidas

  • In order to build excitement, the brand reaches out to people on a unique and relatable level around the world of sports. As part of their consumer engagement strategy, they operate numerous social media and retail outlets.
  • For Adidas’ target audience, six prominent cities across the globe affect buying judgments, trends, and perceptions. It comprises Los Angeles, London, Shanghai, New York, Tokyo, and Paris. Among Adidas’ primary focus areas in the UK are soccer products, and New York and Los Angeles, on the other hand, focus primarily on basketball and baseball. 

marketing and product strategies of adidas

  • Expanding its innovative abilities through collaboration with professional athletes and prominent technology firms has been Adidas’s most outstanding achievement. Branding, as well as marketing, play a significant role in this. In order to strengthen its connection with customers, the brand has consistently employed collaborative marketing approaches. 
  • Adidas produces diverse products, including footwear, clothing, accessories, football kits, golf supplies, etc. Additionally, Adidas provides equipment and kits for a variety of different sports games. Through its subsidiaries, Reebok, Runtastic, TaylorMade, and Rockport, Adidas has increased its popularity.
  • Despite the company’s vast product line, footwear represents the majority of its products. Due to Adidas’ foundation as a footwear firm, its footwear stays the market leader, followed by its clothing and accessories.

Pricing Strategy and Pricing of Adidas  

  • The marketing combination of Adidas consists of Skimming Pricing and Competitive Pricing. The enterprise uses competitive costs for its mill products to compete with trademarks such as Nike and Puma while skimming prices for its latest products. 
  • Adidas stresses price in its marketing mix. The pricing of Adidas products is high, and clients at the top end of the market are targeted with these products. Buyers who buy high-end products regard they are obtaining a graded product given their high price.
  • The intent of skimming pricing is to keep high prices for newly launched products to assert exclusivity and slowly reduce them over time until they achieve market average prices.
  • Since Adidas has substantial brand equity in clothing, it generally uses skimming price approaches. This indicates that Adidas caters to both middle-class and high-end customers.
  • It is necessary to remember, however, that premium pricing entails certain challenges. There are many common people who cannot afford these developments, for instance, and it may be particularly difficult for individuals from developing nations.

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Despite this, Adidas’ sales remain substantial because the target clients are inclined to pay higher prices, but it does turn the trademark into an elitist one. The act of possessing an Adidas item is used by a considerable number of people as a status symbol as well as a means of displaying a preference for quality.

pricing strategy and pricing of adidas 

Furthermore, the enterprise invests heavily in marketing, promotion, and sponsorships, thereby impacting the price. Various aspects may impact the pricing of Adidas’ various products, such as import limitations, duties, and tariffs because 90% of its production occurs in Asia, where labor is moderately cheap. Despite this, Adidas has never compromised on its quality or standards, and its costs are always reasonable.

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FAQs

Has Adidas' strategy been successful?

One of the things that make Adidas stand out from its competitor is its marketing approach. Sportswear manufacturing is Adidas' most robust market, other than that of its American competitor, Nike.

How does Adidas manage its competitive edge?

There are several manners in which the brand distinguishes itself from its contenders, including technology, trade, supply chain, product creation, and grade. It is equally committed to sustainability and the innovation of sustainable developments to improve its trademark and product popularity.

What does Adidas do to satisfy its customers?

In order to build excitement, the brand advances out to people on an individual and relatable level around the world of sports. As a consequence, they have numerous outlets for communicating with their clients, including social media and retail stores.

What is Adidas' audience targeting strategy?

There is a positively active target market for Adidas, encompassing athletes and non-athletes who are impassioned about sports. Although Adidas delivers apparel and footwear for infants and youngsters, its consumers usually are between 14 and 40.

Conclusion

In conclusion, Adidas delivers vibrant, stylish, and comfy wear for teenagers and adults alike. It is correct that Adidas delivers exceptional customer fulfillment to some degree, as does its rival Nike, but there are still some consumers who choose Nike over Adidas. Due to the purchase of Reebok, Adidas now has a more expansive consumer base, which will no doubt result in a more significant profit margin. 

There is no question that Adidas shoes are not too much of a luxury product in terms of price since some people who have bought them before would repeat their decision to repurchase them in the future. No matter how small the discount. Many prominent shoe enterprises are vigorously creating new models that meet client demands in the sports shoe industry. In addition to being vigilant and active, Adidas is committed to improving the grade of its products and meeting the needs of consumers.

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Rahul Gupta More posts by Rahul Gupta