Product Alert(One Page and one source)

Product alert

Industry focus area

To:

From: student-product manager Adidas

Subject: Resonating Adidas Alpha bounce shoe with the US athlete

Article summary

Upon implementation of the design, the young American athletes will able to purchase and view the Adidas product as their own. Mark King, Adidas, president North America, disclosed during an interview with Fortune.

For nine months in 2014, Adidas U.S regional sales tumbled at 7% . Making a total sales of $2.27 billion. Analysts, however, argues that the sales could change and Adidas could double the sales if a great advertisement is done and design changed.

This includes changing of distribution channels, sponsoring of players, changing looks of company retail stores, running campaigns and moving away from traditional marketing strategy.

Analytically, Adidas has lost lots of shares due to the product designs presented to the market and the distribution channels used. Besides, Nike and Under Armor have churned great profits due to their designs being focused on U.S athlete. Nike and Under Armor have further opened specific factories in the U.S devoted to U.S manufacturing initiatives.

Recommendation for Action

Seemingly, Nike and Under Armor will double up their profits if Adidas continue to focus on a more traditional strategy in running their global campaign hence Adidas will lose a lot. Therefore, Adidas should employ sports sponsorship and change in the shoe design to meet the US athlete needs. Moreover, Adidas needs to run campaigns quarterly in the US to meet the growing customer needs.

I own 82.93 shares of Adidas. The share price is $16.15

Sources: Kell, J. (2015). Adidas top exec: We need to look cool again in the U.S. Fortune. Retrieved 17 April 2018, from http://fortune.com/2015/01/22/adidas-usa-turnaround-plan/