Executive top most company which outlines, produce and

Executive Summary

 

 The Adidas Group has the holding company for
Adidas AG, Reebok sportswear company and TylorMade golf company. Since 1924
adidas has grown to become one of the top most company which outlines, produce
and market a huge style of sporting materials for casual clothing and for lots
distinct sports. After Nike, it is the biggest sports apparel manufacturer in
the world and biggest in Europe.

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PESTLE
Analysis

PESTLE is a mnemonic which in its improved form
denotes P for Political, E for economic, S for Social, T for Technological, L
for Legal and E for Environmental. This is concept mostly used by companies to
know their environment they are operating in. Here we see the PESTLE analysis
of Adidas.

Political

Adidas supplies or ships their products world wide.  Each country has its own taxation system and
Adidas should follow these rules and regulations for each and every sale and
product distributed overseas, which commonly include International trade
agreements, Product safety laws, Labor laws ,Consumer safety product
regulations. Adidas coverage is to
manipulate and display unstable substance
to 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, on
the basis of health and safety which is important for the company. Following
the current employment laws Adidas protect and supports the employees rights.

Economic

Adidas helps the countries by increasing their
number of employees to reduce the unemployment…………

Social

Adidas is a world wide company where the employees
with different cultural backgrounds, so the company has to consider all the
social aspects.

Technology

 

 

Marketing
Mix of Adidas

Marketing mix refers to the set
of moves, or strategies, that a business enterprise uses to promote its emblem or
product inside the marketplace. The 4Ps make up a mean marketing mix Product ,Price,  Promotion and Place

Product

Adidas Group has four major subsidiary’s. Adidas, Reebok, Rockpot and
TaylorMade. Both Adidas and Reebok present in sports apparels, footwear and
accessories. Rockpot specializes in outdoor footwear and accessories and Taylor
Made deals with golf clothing and accessories. After Adidas Reebok is the
strongest subsidiary.
Adidas additionally a subsidiary within the social
networking phase named
Runtastic that creates apps for outside and indoor health activities. essentially,
Adidas makes clothing and device for nearly all sorts of sports
activities. It is aimed to provide best value to the customers by providing
high quality products.

Price

In the case of pricing Adidas use both
competitive and skimming prices because of its exclusive style and design as
well as the promotion. When the new products are introduced skimming pricing
are used for the uniqueness of the product and also for apparels to maintain
the brand equity of Adidas in the apparel market. Competitive pricing is used
to run the mill products while competing with other major brands like Nike, New
Balance, Puma etc.

In fact, psychologically customers
think that higher price point means high quality and Adidas rarely drop their
price tag.

Place

Adidas products are available through
different distribution channels like retail outlets, exclusive stores, multi
brand 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 customer
2) Manufacturing > Distributor >
Multi brand showrooms
3) Manufacturing > Online fashion
websites / Adidas website > End customer

The above chart shows the distribution
way of Adidas to the end customers.

Promotion

Various kind of promotion methods are
used to reduce the number of lost customers and increase the sales by
making  partnership with internationally
recognized sports association like FIFA, NBA, UEFA. And also by sponsorship for
athletes and sport events for example Berlin Marathon 2011. The majority
marketing is  promoted through the media.
It promotes itself through commercial ads on television, internet billboard
etc.. When tag line “impossible is nothing” is released it was the biggest
success campaign and  power full
statement for all the times. These types of promotions ensure that Adidas brand
stays in everybody’s mind the awareness towards the brand increased and
targeted the customers, hence this summarizes the marketing mix of Adidas.

SWOT Analysis of Adidas

1)    Strengths 

·       Global
market presence over 200 countries.

·       Partnership
and sponsorship used for marketing and various major  sports events like football.

·       Large
list of portfolio ranging from clothing, sports apparel, watches, accessories
etc..

·       High
brand reputation in the sports industry.

2)   Weakness

·       The
accessories and products may get more expensive because of pioneering
technology and production method.

·       Tendency
for customers to choose other brands because of stiff competition, like Nike,
Puma etc

·       Limited
market share in US.

·       While
comparing with its greatest competitor Nike, Adidas  spends less amount in advertising.

3)    Opportunities

·        
Big opportunities in international
market by setting up world wide outlets and through e-commerce.

·        
Introducing new stylish models and cuts.

·        
Sponsoring new emerging clubs and teams
globally can increase the brand presence.

·        
Effective advertisement according to the
market trend .

·       
Brand building  by starting new sports academies.

4)   Threats

·       Competition
between other new brands by offering new styles and varieties.

·       Increasing
establishment of other brands.

·       Threats
from other brands which sell their products at low cost and high quality.

·       Competition
between Nike, Nike has the greater market share and they spend a lot in
advertisement.

·       Increasing
number of fake and duplicate products in market reduce the brand image.

 

 

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