Adidas will close stores in Russia
Adidas is changing its marketing strategy. For the first time in recent years, the German manufacturer of sportswear plans to invest 2 billion euros in marketing and thereby increase sales in Europe and North America. And in Russia, it is planned to close stores due to lower profits.
The new Adidas marketing strategy is, first of all, that special teams will be created for each category, the company refuses the general marketing department, as it was before. Senior managers will oversee all areas of marketing: from research to innovation for each individual sport.
According to the company, such changes will increase the speed of decision-making and lead to more effective strategies for working with consumers. But despite the changes introduced, the newly appointed chief marketer Eric Lidke and his team will continue to formulate long-term strategies for each category and develop the main Adidas brand.
In the next year and a half, Adidas marketing costs will increase by 12-13% thanks to sales. It is also expected that this year the group’s revenues will be about 16 billion euros, which will bring the cost of promotion up to 2 billion euros. The Adidas marketing budget has grown for the first time since 2010, when 25% of all proceeds from sales were used to sponsor the World Cup in South Africa. Sales growth of 1,5% at that time was able to provide marketing costs of $ 1,75 billion.
Adidas decided to resort to these changes after it abandoned its plan to earn 17 billion euros in sales by the end of the year. The company cites weak demand for TaylorMade Adidas Golf products, as well as a decline in sales in Russia.
Adidas shares fell 15% after the company issued a profit warning and announced that it would accelerate the closure of stores in Russia due to increased risks to consumer spending in the region.
According to the AdIndex Data Center, Adidas ranks 62nd in the list of the largest advertisers in Russia in 2013. Advertising costs amounted to 895,75 million rubles.
On the territory of our country there are more than 250 branded Adidas stores.
Adidas is changing its marketing strategy. For the first time in recent years, the German manufacturer of sportswear plans to invest 2 billion euros in marketing and thereby increase sales in Europe and ...
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