PRICING STRATEGY OF ADIDAS

impossibe is
nothing by

DEEBAH KAMAROJMAN

PRICING DECISION

to be the best SPORT reebok
company in the world ADIDAS

MISSION THE CORE BRANDS

creating
the new

ADIDAS STRATEGY

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SPEED OPEN SOURCE
deliver

CITIES

ADIDAS use a skimming price strategy,
for product which are newly introduce in the
market and uniquely design. Having said that,
launching the new product with high price when
there is no or little competition. Then, reduce the
price back, later on.

The impact of Adidas skimming price is most
applied to the new product and charges the high
price that customer will to pay for the wished
product.

"skimming price are very useful especially the product
on introduction step in life cycle stages. It can make
more initial cash flow. (Dipp et al., 2005, p660)

SKIMMING PRICING STRATEGY

Adidas charge the price similar to
their big competitors (NIke and
Puma). Furthermore, Adidas show
that they use the competitive pricing
in Amazon.

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However, Adidas products take over
the third place for most of
production company in a year as
well as cheap labour and low cost.
Every company wants to reduce
the total cost and make a total
revenue as much as they can.
but still, when it come to the
pricing, we have to take note
that "price is the value that wil
place to the product even it will
make the exchange" (Dibb et al,
2005, p623).
Besides that, it not signify as a
total cost is the actual value of
the product but the product
itself can increasing the value
with other factors like
promotion, brand image and
quality. Having said that, the
price of the market and
company's competitor can be
another factor to the price
exchanges. (Dibb et al., 2005).

COMPETITIVE PRICING

PENETRATION PRICING

Adidas never use penetration pricing as their strategy because
they scared it will effect to theor brand equity of Adidas.
Adidas believe that the high price can help more to the price
quality approach and customer must be know the high of the
price is equivalent with the better quality of the product.

Conversely, Reebok launch the new
product in the market with penetration
pricing strategy. The price grow as well
as the number of the demand increase
for the product.

we can see the advantages of Reebok's pricing strategy is
because the set price have to suitable with the market price
level. Additionally, the price will goes high regarding the high
demand, it will be not affected to the willingness of customer
to buy. (Roll, 2015).
Adidas practice and implement pricing strategies depends on
which market that they go through with mission to achieve
different way to accomplished. However, Adidas still
available to use penetration pricing strategy to attain further
market domination and beneficial to economies.

COMPETITORS

NIKE
PUMA
UNDER ARMOUR

WHY CAN'T
COMPETE
WITH
ADIDAS?

Adidas has left Under Armour far away and pace to Nike
(CNN Business, 2017). According to CNN Business news,
the German sports brand rise meanwhile two of the
competitors were scuffle.

Adidas brand sales up to 31% in North America
and broader and investing in the U.S and more
marketing aimed to women.

The Mark King, the president of Adidas North
America want to emphasis and win as a top
sports brand in U.S to accomplish the mission
being the world's greatest company of sports
brand.
Adidas make a beautiful innovation new edition,
marketing, and investing to U.S and at the same
time, Nike do nothing and their price are too
high.

According to analyst to Wedbush,
Christopher Svezia Adidas manipulated the
market share with 5% two years ago and
now 10% in U.S. Lately, Adidas operated
"Speed Factory", an automated
manufacturing center in Atlanta.

So, Adidas no need to tense when come
peak demand season because the factory
can helps Adidas to produce and distribute
shoes to customer or retailers.

In 2024, Adidas makes a target to achieve with replace all virgin
polyester with recycled polyester and more than 40% of Adidas
apparel's had produce recently.
Actually, the clothing made by Adidas with ocean plastic has been
used in college sports, the NHL, the Australian Open, and more.
But it still not disposed the plastic pollution overall.

PARLEY FOR THE OCEAN
FUTURE CRAFT LOOP
SPORT INFINITY
BIOSTEEL FIBER
DYEING PROCESSES
LOW WASTE
REDUCE WASTE AND EMISSIONS-
ADIDAS FORMOTION TECHNOLOGY

Like I said this before, Adidas find another way to improve and
make innovation over and over. Then, Adidas make another

strategy partner to be a green production. Adidas create 100%
recyclable shoe called the Future Craft Loop in 2021. The shoe is
made to remade so it will be returned and broken down to create a

brand new pair.

ADIDAS INSIGHTS with
TOURISM INDUSTRY

The competitive pricing strategy that will be implement when
the industry having a peak season.
The value add pricing
strategy for industry
tourism is for perceived
value equivalent with the
service that offer.
The sociocultural factors of
Adidas have like hijab or the
long sleeve jacket with
hoodies are for muslim wear.
However, for tourism is much
important too. As an example
make a prayer room or the
apparel for pray in certain
place for Islamic religion.

The innovation of the services or product are very good to make
your company more appeal than your competitor.
Make more sponsorship to any event that will exposed and
being your ambassador to your service or product like artist,
athlete, or non-government workshop.
The social media have actively participated. In this generation,
we hve to take the step very productive otherwise competitor
would seize the opportunity.

HEDONIC/AESTHETIC OBJECTIVE PERFORMANCE
PERFORMANCE NEEDS NEEDS

SUPERNOVA TEE CORE-QUALITY CONFORMITY AND
REGULAR FIT LIKE CHARACTERISTICS CHEMICAL SAFETY
NOWADAYS STANDARDS
TREND 
FEATURES- ADIDAS RECYCLED
SPORT STYLE OF STYLING PLASTIC BOTTLES
CLOTHES MADE OF AS A REPLACEMENT
MOISTURE- CHARACTERISTICS FOR VIRGIN
WICKING FABRIC POLYESTER 
THAT KEEPS YOU
DRY WHEN RUN  REPUTATION ADIDAS USES
SUPPORT TECHNOLOGY TO
ADIDAS ACQUIRED FUSE CUSTOMER'S
REEBOK AS A CHARACTERISTICS ONLINE AND
SUBSIDIARY. OFFLINE 
ADIDAS : FOCUS
MORE TO SPORTS
PERFORMANCE AND
LIFESTYLE.
REEBOK : MORE TO
FITNESS AND
TRAINING.

PERFORMANCE PRODUCT SOCIAL
RELIABILITY CONVENIENCE PERFORMANCE
NEEDS NEEDS
NEEDS
ADIDAS
DESIGNEDA SHOES ADIDAS APPLY COMFORTABLE AND
FOR MBA SPRAY FORMS AN SUPPORTIVE SHOES
BASKETBALL INVISIBLE LAYER FOR LONG CITY RUNS
PLAYER (CORE-
QUALITY THAT CAN
CHARACTERISTICS) PROTECT FROM

ADIDAS CREATE DIRT
MEMORABLE
STORY AND SINCE 2015, ADIDAS FOLLOWS MORE
PACKAGING ADIDAS HAS THAN A DECADE OF
EXPERIENCE PARTNER WITH RESEARCH MATERIAL
ILLUSTRATE THE PARSLEY FOR THE DEVELOPMENT AND
ATHLETE FROM OCEANS DRIVEN COLLABORATION WITH
THE STREET TO MANUFACTURING AND
THE FIELD OF THE TO ECO- RECYCLING PARTNERS
PLAY IN SUPPORT INNOVATION ACROSS ASIA, EUROPE,
OF THE PACK AND NORTH AMERICA.
tHE FIRST LOOP SHOE
MADE WITH ONE
MATERIAL TYPE AND NO
GLUE USING ADIDAS
SPEED FACTORY
TECHNOLOGY.

ADIDAS ACQUIRED ADIDAS HAVE AN ADIDAS USES
REEBOK AS A ONLINE SHOP TECHNOLOGY TO
SUBSIDIARY. SUPPORT FUSE CUSTOMER'S
ADIDAS : FOCUS ONLINE AND
MORE TO SPORTS OFFLINE 
PERFORMANCE AND
LIFESTYLE.
REEBOK : MORE TO
FITNESS AND
TRAINING.

REFERENCE

Adidas Website. Retrieved from https://www.adidas-
group.com/en/sustainability/products/sustainability-innovation/
CNN Money Sports. (2017 November 9). Adidas is running circle around
its competition. Retrieved from
https://money.cnn.com/2017/11/09/news/companies/adidas-us-
earnings-nike-under-armour/index.html
The University of Newcastle. (n.d.). The branding od Adidas is the brand
and a leader in. Retrieved from
https://www.coursehero.com/file/p1sj70v/The-branding-of-Adidas-is-
the-brand-and-a-leader-in-the-sporting-goods-market/
The marketing mix of Adidas and Puma. (2016 November 24). Pricing
the animal and the three stripes. Retrieved from
http://sunniesmarketing.blogspot.com/2016/11/adidas-puma-pricing-
animal-and-three.html

APPENDIX

Adidas slowly going to
Nike

when comes to
marketing,

Adidas still the
second lead

Adidas slowly going
reach top brands

Adidas high demand
more than Jordan Air

brand