A Study On Adidas' Marketing Performance


Adidas is one of the most renowned sports goods producers. This study addresses its marketing strategies and analyses Adidas' performance information and market rivals. The first portion of this study addresses the present Adidas condition and is submitted by the evaluation of PESTLE. Using these techniques, the firm and its business are provided a brief overview. The proposed strategies will be evaluated in the second portion of the study using modern marketing methods and techniques VRIO and the 5 steps in the decision-making process. Adidas ought to utilize a framework created by Harvard Professor Francis Aguilar in 1967 known as the Pestle Analysis, to assist them reveal, examine and understand the components that are likely to influence their performances and exercises. Pestle analysis stand for six important factors such as Political, Economic, Social, Technological, Legal and Environmental factors.

The main political problems influencing Adidas in many nations are changing trade policies and political unrest. To maintain its worldwide presence and economic result Adidas has to address such problems. Each nation abides by its own scheme of taxation. For each sale and each product distributed abroad, Adidas is needed to comply with these regulations. The administration of US President Donald Trump imposes tariffs and limitations on imports. U.S. Chinese goods tariffs are an enormous area of concern for Adidas and other athletic clothing companies regarding product price increases. Germany is a significant exporter, and tariffs on US imports can cost Germany up to EUR 20 billion dollars. Adidas has a global operation involving product and service shipping and distribution. Without enhancing its complicated supply chain to fulfill global and political legislation and procedures, Adidas is unable to attain its general goals and objectives. This will assist Adidas boost its understanding of sales, profitability and brand.

The financial variables that can influence Adidas efficiency and profitability are unemployment, wage rates, taxation, inflation and interest rates. The giants of the sport footwear sector are both Adidas and Nike. In 2011, both brands ' combined concentration ratio was 52.7 percent, meaning that these two controls nearly half of the sector.Adidas products are not life's requirement, but concentrate on consumers and athletes in active lifestyle. The global economy is experiencing noticeable changes. Adidas ' marketing approach should concentrate on selecting markets to distribute and sell products that will assist boost market share, brand loyalty, and profitability in Adidas. More than 50% of goods are manufactured in China by Adidas. But the business must move some of the manufacturing ability to other nations owing to increasing labour costs. Another financial factor affecting its output is increasing labour costs here. On the other side, the problems linked to import and export of products must be resolved by Adidas.

Culture, religion, lifestyle and preferences are the social variables that affect Adidas output, brand image and allegiance to customers. When taking any choice and implementing approach, Adidas should bear in mind all groups and values. People are becoming increasingly aware of their health. They want to tackle health-related issues and live an active lifestyle. Sport footwear, apparel and other associated fitness accessories are needed for this purpose. The demand for the footwear and apparel industry can be favourably affected. Social media today enabled customers to share and react to any problems that arise. But you can also stand out from another social media platform. Adidas has frequently used social media campaigns to raise awareness of sales and brands.

There is a competitive edge over rivals for every sports brand that embraces innovative techniques. Technology can be used, for instance, in product and process, leadership and billing systems, not only in a product itself but also in the general operation of the business. Although few Speed factories have been launched by Adidas to speed manufacturing. This technology still requires to be expanded to other Asian factories and other places. In addition, information collection integration technology should be incorporated into its products to evaluate performance athletes and other customers. To boost efficiency, market share and brand loyalty, Adidas must tackle these technological difficulties.

Adidas owns intellectual property and IP technologies. They also have patents for design, defending their right to copy and infringe. The patents also serve to stop counterfeit companies as legal protection. They have, of course, trademark manufacturing as a large business. Because Adidas endorses celebrity sponsorships as a type of marketing if their connection to the sports world. And comply fully with domestic and local legislation. Adidas reduces the effect on the environment. It is their responsibility to track and eliminate dangerous substances. This may be why they offer natural materials in their products. They pursue ethical business practices by committing themselves to ensuring that supplies follow the laws in each nation in which their products are produced. Adidas attempts to minimize the use of prohibited and limited material in manufacturing, goods and shops. Another commitment of the business is to decrease carbon emissions and achieve objectives for the 2020 green company. The company also aims to manufacture products and clothing followed by 'low waste initiative program.'

Adidas VRIO analysis is a resource-oriented analysis. Strategic resource-based assessment is oriented on the premise that strategic resources can provide a chance for Adidas to create a viable competitive benefit over its business competitors. This sustainable competitive advantage can assist Adidas to enjoy above-average sector earnings and undermine competitive pressures. Finding and defining the issue is the first step in decision-making. Adidas requires to collect all the data and closely consider it. The definition of the issue by Adidas can have a significant effect on how it is solved. In this critical first step in decision-making, there are 3 common errors that Adidas must prevent. The first error is too widely or too narrowly to define the issue. A very classic example, the issue indicated as: build a better mousetrap 'could be better said as' get rid of the mice. 'Adidas should describe issues in ways that provide them with the finest possible solutions. The second error focuses on symptoms rather than causes. Symptoms are indicators that there may be problems, but for the problems themselves they should not be mistaken. Adidas should be alert to detect the symptoms of the issue, example decrease in efficiency, and dig deeper to tackle root causes as well. The third error is to choose the incorrect issue to be dealt with at a specific stage in time. Adidas must first set priorities and address the most significant issues. Dealing with all the issues at once is not a reasonable choice, so before fixing them, Adidas must recognize the value and significance of each issue.

It is time to assemble the facts and information that can be used to solve it once a problem is defined. This is where precisely what is known and what needs to be known should be clarified by Adidas. Adidas should identify key stakeholders in this issue and consider the impacts of possible courses of action on each of these. The stronger the pool of options and the more they are known about, the greater the likelihood of making a healthy choice. It is essential that at this stage Adidas avoid a very prevalent decision-making mistake-too rapidly abandoning the search for options and assessing their impact. This often is due to impatience, time pressure, and blatantly ancient absence of engagement. Just because an alternative is convenient doesn't make it the best, it could possibly have less potential than others that could be found with the correct strategy and time engagement.

In the event of unforeseen beneficial or negative side effects, decisions often have unintended consequences. If Adidas provides adequate attention to options, some could be recognized in advance and their consequences used to alter and reinforce a choice. One way for Adidas to reinforce the search for options is to actively seek consultation and bear on a problem participation, generating more options for account shows more about the potential implications of the options.

Adidas' advertising strategy and attempts have been smartly managed. Now, greater customer engagement needs to be focused. The brand will need to concentrate on customer retention and commitment to match its largest competitor Nike. This will assist to drive CLVI greater for each client. Through most markets, the brand has accomplished double-digit growth rate, and now the focus must be on maintaining momentum in the future.

Attractive customer experience and powerful customer service are essential for maintaining this growth rate. Besides the mega cities, it also has to target the tier 2 towns where the amount of contemporary working-class experts has continued to grow. After Europe and North America, the focus has moved to the fast-growing economies in Asia. To discover quicker development, Adidas should target these markets through localized strategies.

Reference List

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14 May 2021
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