Young people are a dominant market segment of Adidas’ target market. Justify whether you feel that this restricts the market for their products, or do you feel that they are doing the correct thing?
It’s very difficult for a company to connect to all the customers in large, broad or diverse markets. Adidas has done the right thing by targeting the young people. It knows very well that it has always been associated with sports of all kind and it is something that they can serve best. Obviously as each and every individual is different so each consumer has a different set of needs and a single brand alone is not sufficient to cater each and every segment. (Perner)
Adidas brand is based on the passion for distinction in sports and creative for athletes perform to as best to their ability. Youngsters are the one who follow sports more actively and are as such a brand face for them. (Wilson, 2010) As an example when the name Adidas is recalled the only thing that comes in your mind are sports, youth and a lot of energy this happens because it has positioned itself in the market as a brand that has supported many iconic athletes to achieve great things.
It is very important from the point of a view of a marketer to know the target market. It is very easy and simple to explain say that you can’t cover the entire market with one blanket. If Adidas as an example tries targeting everyone the message that it delivers would be undefined and won’t be able to satisfy any of it’s customers.
As for Adidas targeting is the very correct step as the customers who purchase Adidas are in accordance with anything and everything that it is offering. In this way it is a segment that would be the loyal cutomers for the Adidas whatsoever happens to it they would stick to it entirely. (Hamaleinko, 2010)
As everyone knows that time and resources are the most important things wasting them on things that seem disinteresting to your business would not be suitable. Adidas has taken a smart move by targeting most of its efforts on one direction as it knows that it is better to focus your entire money and resources on pleasing and offering those customers who expect innovative and creativity from it rather than diversifying into different segments. (Belzer, 2015)
For Adidas targeting has been a very profitable decision from the very start it was because of this that Adidas came to know that their demographic is the young innovative and energetic people who tried to experiment with the new stuff that was available and was being offered by Adidas.
Adidas knew very well that if it fails to perform a target market analysis before launching it’s products, the target audience would have never known about their business because as of then they won’t have know the ways to target their ,meassage to their intended audience. By learning about the needs and expectations of its target audience it has tailored it’s offerings before the launch so in short they don’t to worry about working backward. This also helps them ensure that their each every minute and cent has been spent in a nice manner. (Hainer)
In the world of globalisation it is necessary that the products are tailored to a specific customer who makes up revenue for the company. The market segmentation allowed Adidas to reach a consumer having specific needs and wants and who ssociated with it. In the long run, this has benefittes Adidas as through it is able to use its corporate resources in an effective manner and has taken batter strategic decisions. (Bose, 2012)
The need for segmenting arised for Adidas as it felt that market is not homogeneous. For each and every product the market is divided into different customer groups. And it is easier for them when they know their target market. (Teece, 2010)
Adidas has always believed that targeting should be done for a segment that you are after and this has helped them reach their target audience pretty easily. The major realization has been the fact that major investments in marketing are not essential to achieve the desired outcomes.
The company’s greater focus and high effectiveness embedded in their marketing plan has helped them in their vision and helped in attaining better returns on the capital invested.
It knows that each customer has different wants, needs and tastes. Customers often want to be the fashion leads. To achieve this, they focus on purchasing certain and specific styles and are willing to pay a premium for it. Most are also shoppers who desire value for money and bargain for best value. The Adidas as an organization faces a dilemma to target the both markets simultaneously with a single product. There are cases where a high priced product may not be so valued by a bargaining customer.
One of the major challenges remains the correct identification of the brand’s target population. The company knows that survival of the business in the competitive times is mainly based on the target population’s choice and behaviour assessment and understanding what they want. They have known for a fact that brands like them who can feel the choices and bring the right products to the market have a better probability of convincing the investors. Distinguishing between audiences has made it easier for them to determine that youth is the segment that truly does help them in supporting their business and them and has made them understand that for them they are more than one time purchase customers. (Goyat, 2012)
Belzer, J. (2015) Adidas Launches Adigirl Clothing Line Targeting Female Athletes. Available at: https://www.forbes.com/sites/jasonbelzer/2015/08/06/adidas-launches-adigirl-clothing-line-targeting-female-athletes/ (Accessed: 22 August 2015).
Bose, T. K. (2012) ‘Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective Value Chain Management’, International Journal of Marketing Studies, .
Goyat, S. (2011) ‘The basis of market segmentation: a critical review of literature’, European Journal of Business and Management, 3.
Hainer, H. (2015) Strategy Overview. Available at: https://www.adidas-group.com/en/group/strategy-overview/ (Accessed: 22 August 2015).
Hamaleinko, S. (no date) Adidas Target Audience. Available at: https://www.mindmeister.com/34165392/adidas-target-audience (Accessed: 22 August 2015).
Perner, L. (no date) Introduction to Marketing. Available at: https://www.consumerpsychologist.com/marketing_introduction.html (Accessed: 22 August 2015).Teece, D. J. (2010) ‘Business Models, Business Strategy and Innovation’, Long Range Planning, 43(2-3), pp. 172–194. doi: 10.1016/j.lrp.2009.07.003.
Wilson, J. (2010) Adidas targets US youngsters for sales. Available at: https://www.ft.com/intl/cms/s/0/c13f7b72-eb3a-11df-811d-00144feab49a.html (Accessed: 22 August 2015).