Executive Summary The Adidas Group has the holding company forAdidas AG, Reebok sportswear company and TylorMade golf company. Since 1924adidas has grown to become one of the top most company which outlines, produceand market a huge style of sporting materials for casual clothing and for lotsdistinct sports. After Nike, it is the biggest sports apparel manufacturer inthe world and biggest in Europe. PESTLEAnalysisPESTLE is a mnemonic which in its improved formdenotes P for Political, E for economic, S for Social, T for Technological, Lfor Legal and E for Environmental. This is concept mostly used by companies toknow their environment they are operating in. Here we see the PESTLE analysisof Adidas.
PoliticalAdidas supplies or ships their products world wide. Each country has its own taxation system andAdidas should follow these rules and regulations for each and every sale andproduct distributed overseas, which commonly include International tradeagreements, Product safety laws, Labor laws ,Consumer safety productregulations. Adidas coverage is tomanipulate and display unstable substanceto shield human health and surroundings one of those is to cast off PVC making progress in finding substitutes like polyurethane, ethyl, vinyl, silicones,thermoplastic rubber. It also provide training sessions for the employees, onthe basis of health and safety which is important for the company. Followingthe current employment laws Adidas protect and supports the employees rights.EconomicAdidas helps the countries by increasing theirnumber of employees to reduce the unemployment…………SocialAdidas is a world wide company where the employeeswith different cultural backgrounds, so the company has to consider all thesocial aspects.Technology MarketingMix of AdidasMarketing mix refers to the setof moves, or strategies, that a business enterprise uses to promote its emblem orproduct inside the marketplace. The 4Ps make up a mean marketing mix Product ,Price, Promotion and PlaceProductAdidas Group has four major subsidiary’s.
Adidas, Reebok, Rockpot andTaylorMade. Both Adidas and Reebok present in sports apparels, footwear andaccessories. Rockpot specializes in outdoor footwear and accessories and TaylorMade deals with golf clothing and accessories. After Adidas Reebok is thestrongest subsidiary.Adidas additionally a subsidiary within the socialnetworking phase namedRuntastic that creates apps for outside and indoor health activities. essentially,Adidas makes clothing and device for nearly all sorts of sportsactivities. It is aimed to provide best value to the customers by providinghigh quality products.
PriceIn the case of pricing Adidas use bothcompetitive and skimming prices because of its exclusive style and design aswell as the promotion. When the new products are introduced skimming pricingare used for the uniqueness of the product and also for apparels to maintainthe brand equity of Adidas in the apparel market. Competitive pricing is usedto run the mill products while competing with other major brands like Nike, NewBalance, Puma etc.In fact, psychologically customersthink that higher price point means high quality and Adidas rarely drop theirprice tag.PlaceAdidas products are available throughdifferent distribution channels like retail outlets, exclusive stores, multibrand showrooms and through e-commerce(own and other online retails).
All these show the considerable international reach in its place and distribution marketing mix method.1) Manufacturing> Adidas outlets > End customer2) Manufacturing > Distributor >Multi brand showrooms3) Manufacturing > Online fashionwebsites / Adidas website > End customerThe above chart shows the distributionway of Adidas to the end customers.PromotionVarious kind of promotion methods areused to reduce the number of lost customers and increase the sales bymaking partnership with internationallyrecognized sports association like FIFA, NBA, UEFA. And also by sponsorship forathletes and sport events for example Berlin Marathon 2011.
The majoritymarketing is promoted through the media.It promotes itself through commercial ads on television, internet billboardetc.. When tag line “impossible is nothing” is released it was the biggestsuccess campaign and power fullstatement for all the times. These types of promotions ensure that Adidas brandstays in everybody’s mind the awareness towards the brand increased andtargeted the customers, hence this summarizes the marketing mix of Adidas.SWOT Analysis of Adidas 1) Strengths · Globalmarket presence over 200 countries.
· Partnershipand sponsorship used for marketing and various major sports events like football.· Largelist of portfolio ranging from clothing, sports apparel, watches, accessoriesetc..· Highbrand reputation in the sports industry.2) Weakness· Theaccessories and products may get more expensive because of pioneeringtechnology and production method.· Tendencyfor customers to choose other brands because of stiff competition, like Nike,Puma etc· Limitedmarket share in US.
· Whilecomparing with its greatest competitor Nike, Adidas spends less amount in advertising.3) Opportunities· Big opportunities in internationalmarket by setting up world wide outlets and through e-commerce.· Introducing new stylish models and cuts.· Sponsoring new emerging clubs and teamsglobally can increase the brand presence.
· Effective advertisement according to themarket trend .· Brand building by starting new sports academies.4) Threats· Competitionbetween other new brands by offering new styles and varieties.· Increasingestablishment of other brands.
· Threatsfrom other brands which sell their products at low cost and high quality.· Competitionbetween Nike, Nike has the greater market share and they spend a lot inadvertisement.· Increasingnumber of fake and duplicate products in market reduce the brand image.