Understanding consumer behavior is very important for companies who plan to make any sort of profits. Consumers product and service preferences are constantly changing, to market consumers effectively you must study and understand these desires in order to succeed in a well defined market. Adidas looks far into consumers and focus on certain things such as wants, desires, comfort level, and the stimulus cycle which includes the 5 senses sight, smell, taste, touch, and hearing.
Remember when Adidas launched the originals and consumers went crazy demanding for the all white low tops and then to keep then interested Adidas released the originals in a variety of colors and styles which helped Adidas develop a name for itself. (Here are the Adidas originals below)
Consumer wants and need are not the only factors that Adidas considers. Culture and values are also taken in consideration by Adidas. Cultural backgrounds influence the Consumer Decision Making process because consumers of a distinct background tend to have similar needs and identical consumption patterns. It is Adidas' job to adapt to the various surrounding and to ever evolving and changing needs of consumer. Not only attracting consumers in their birth place of Germany, Adidas also generates consumers interest in the United States, China, Russia and Mexico.
Diverse brand portfolio
Consumers want choice. Whether it is the athlete looking for the best possible equipment, or the casual consumer searching for the next fashion trend, Adidas is inspired to develop and create experiences that engage consumers in long-lasting relationships with its brands. To maximize the consumer outreach, Adidas has embraced a multi-brand strategy. This approach allows it to tackle opportunities from several perspectives, as both a mass and a niche player, providing distinct and relevant products to a wide spectrum of consumers. In this way, each brand is able to keep a unique identity and focus on its core competencies, while simultaneously providing for Adidas Group with a broad product offering, increasing in its leverage in the marketplace.
Presentation of Route 2015
In November 2010, the Adidas Group unveiled its 2015 strategic business plan named “Route 2015”. This plan is the most comprehensive the Adidas Group has ever prepared, incorporating all brands, sales channels and Group functions globally. Based on our strong brands, premium products, extensive global presence and our commitment to innovation and the consumer, we aspire to outperform total market growth (both GDP and sporting goods market) and to grow our bottom line faster than our top line. In addition, the Group plans to lay the foundation for leadership in the sporting goods industry by outgrowing our major competitor over the next five years. The plan aims at growing the revenues of the adidas Group by 45% to 50% currency-neutral from 2010 to 2015. In addition, the Group targets a compounded annual earnings growth rate of 15% and aims to reach an operating margin of 11% sustainably by 2015 at the latest. To achieve these goals, we have made strategic choices and will prioritise our investments under our six key strategic pillars.
Results from UIE's studies show that the online buying process acts as a sieve, where customers are inadvertently filter out at each stage of their decision-making process
Above is a chart of how consumers think and evaluate their product before purchasing it and what happens after the purchase, even though the chart shows a consumer going threw the process of buying a new computer, Adidas consumers go threw the very same process while picking and choosing sneakers and athletic gear. They go by deciding the size, style, color, comfort level, high or low top and the overall experience is shared with other potential consumers and then you receive more attention to your brand as shown before by the Adidas Originals.
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