PRATIKSHA SUNIL JADHAV

ROLL NO : 50

PROF.DR.SARIKA SAGAR MAM

SATISH PRADHAN DNYANSADHANA COLLEGE,THANE

(ARTS,SCIENECE & COMMERCE)

OFF ESTERN EXPRESS HIGHWAY, DNYANSADHANA COLLEGE MARG,

THANE – 400604

ACEDMIC YEAR 2020-21

 CERTIFICATE

This is certify Miss .JADHAV PRATIKSHA SUNIL has worked and duly completed his Project Work for
the degree of Bachelor of Management studies under the Faculty of Commerce in the subeject of Marketing
and his project is entiteled. Brand Awerness of Adidas Company. Under the my superivision.

I further certify that the entire work has done by the learner under my guidance and that no part of it has
been submitted previously for any Degree or Diploma of any Univercity.

It is his own work and facts reported by his personal findings and investigation.

Date of submission Name and Signature of Guiding

techer
 Declaration by learner

I the undersigned Miss. Pratiksha Sunil Jadhav here by. Declare that the work embodied in this project
work titled “ A Study Of Brand Awareness of Adidas Company” , formas any own contributor to the
research work carried out under the guidance of Prof. DR. Sarika Sagar is a result of my own research
work and has not been previously submitted to any other university for any other degree diploma to this or
any other University.

Wherever reference has been made to previous work of others, it has been clearly indicates as such and
included in the bibliography

I here by further declare that all information of this document has been obtained and presented in accordance
rules and ethical conduct.
 Acknowledgement

To List who all have helped me is difficult because they are so numerous and the depite is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of his project.

I take this opportunity to thank the Univercity of Mumbai for giving me chance to do this project.

I would like to thank my Principal, Dr. Hemant Chitte. for providing the necessary facilities required for
completion of this project.

I take this opportunity our Coordinator Prof. Rajesh Valeja. for his moral support and guidance.

I would also like to express my sincere gratitude towards my Project Guide Prof DR.Sarika Sagar.whose
guidance and care made the project successful.

I would like to thank my College Library. For having provided varios reference books and magazines related
my project .

I astly , I would like to thank each and every person who directly or indirectly helped
 INDEX

Sr.N Title of Analysis Page NO

o
1 TITLE PAGE 1.1

2 CERTIFICATE 1.2

3 DECLARATION BY LEARNER 1.3

4 ACKNOWLEDEGMENT 1.4

5 INDEX 2

6 LIST OF TABLES 2.1

7 LIST OF GRAPHS 2.2

8 INTRODUCTION 3

9 REVIEW PF LITERATURE 3.1

10 FINDING AND CONCLUSIONS 3.1.2

11 SUPPLEMENTRY MATTERIAL 3.1.3

12 BIBILOGRAPHY 3.1.4

13 ANNEXURE 3.2

14 3.2.1

15 3.2.2
 LIST OF TABLE

Sr Title of anylysis Page no

no
Gender od response
Age of responded
 LIST OF GRAPHS

Sr no Title of inseparation Page no

 CHAPTER 1

1.1 Introduction

Adidas AG (German stylized as adidas since 1949) is a German multinational corporation founded and

headquartered in Herzogenaurach, Bavaria that designs and manufactures shoes, clothing and accessories. It is
the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike It is the holding
company for the Adidas Group, which consists 8.33% stake of the football club Bayern München, and Runtastic,
an Austrian fitness technology company. Adidas' revenue for 2018 was listed at €21.915 billion.
The company was started by Adolf Dassler in his mother's house; he was joined by his elder brother Rudolf in
1924 under the name Gebrüder Dassler Schuhfabrik ("Dassler Brothers Shoe Factory"). Dassler assisted in the
development of spiked running shoes (spikes) for multiple athletic events. To enhance the quality of spiked
athletic footwear, he transitioned from a previous model of heavy metal spikes to utilising canvas and rubber.
Dassler persuaded U.S. sprinter Jesse Owens to use his handmade spikes at the 1936 Summer Olympics. In
1949, following a breakdown in the relationship between the brothers, Adolf created Adidas, and Rudolf
established Puma, which became Adidas' business rival.
The three stripes are Adidas' identity mark, having been used on the company's clothing and shoe designs as a
marketing aid. The branding, which Adidas bought in 1952 from Finnish sports company Karhu Sports for the
equivalent of €1,600 and two bottles of whiskey, became so successful that Dassler described Adidas as "The
three stripes company".
The company was founded by Adolf "Adi" Dassler who made sports shoes in his mother's scullery or laundry
room in Herzogenaurach, Germany after his return from World War I. In July 1924, his older
brother Rudolf joined the business, which became "Dassler Brothers Shoe Factory" (Gebrüder Dassler
Schuhfabrik). The electricity supply in Herzogenaurach was unreliable, so the brothers sometimes had to use
pedal power from a stationary bicycle to run their equipment.
Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic events. To enhance
the quality of spiked athletic footwear, he transitioned from a previous model of heavy metal spikes to utilising
canvas and rubber. In 1936, Dassler persuaded U.S. sprinter Jesse Owens to use his hand made spikes at
the 1936 Summer Olympics. Following Owens' four gold medals, the name and reputation of Dassler shoes
became known to the world's sportsmen and their trainers. Business was successful and the Dasslers were
selling 200,000 pairs of shoes every year before World War II.
Both Dassler brothers joined the NSDAP in May 1933 and became also members of the National Socialist Motor
Corps. Furthermore, Adolf took the rank of Sportwart in the Hitler Youth from 1935 until the end of the
war. During the war, the company was running the last sport shoe factory in the country and predominantly
supplied the Wehrmacht with shoes. In 1943 the shoe production was forced to cease operations and the
company's facilities and workforce was used to manufacture anti-tank weapons. From 1942 to 1945 at least
nine forced labourers were working at both sites of the company.
The Dassler factory, used for production of anti-tank weapons during World War II, was nearly destroyed in 1945
by US forces, but was spared when Adolf Dassler's wife convinced the American soldiers that the company and
its employees were only interested in manufacturing sports shoes. American occupying forces subsequently
became major buyers of the Dassler brothers' shoes.
The brothers split up in 1947 after relations between them had broken down, [19] with Rudolf forming a new firm
that he called Ruda – from Rudolf Dassler, later rebranded Puma, and Adolf forming a company formally
registered as Adidas AG from Adi Dassler on 18 August 1949. An urban myth has promulgated
the backronym All Day I Dream About Sports.
Puma SE and Adidas entered into a fierce and bitter business rivalry after the split. Indeed, the town
of Herzogenaurach was divided on the issue, leading to the nickname "the town of bent necks" — people looked
down to see which shoes strangers wore. Even the town's two football clubs were divided: ASV
Herzogenaurach club was supported by Adidas, while 1 FC Herzogenaurach endorsed Rudolf's footwear. When
handymen were called to Rudolf's home, they would deliberately wear Adidas shoes. Rudolf would tell them to
go to the basement and pick out a pair of free Pumas. The two brothers never reconciled and although they are
now buried in the same cemetery, they are spaced as far apart as possible.
In 1948, the first football match after World War II, several members of the West German national football
team wore Puma boots, including the scorer of West Germany's first post-war goal, Herbert Burdenski. Four
years later, at the 1952 Summer Olympics, 1500 metres runner Josy Barthel of Luxembourg won Puma's first
Olympic gold in Helsinki, Finland.
At the 1960 Summer Olympics, Puma paid German sprinter Armin Hary to wear Pumas in the 100 meter sprint
final. Hary had worn Adidas before and asked Adolf for payment, but Adidas rejected this request. The German
won gold in Pumas, but then laced up Adidas for the medals ceremony, to the shock of the two Dassler brothers.
Hary hoped to cash in from both, but Adi was so enraged he banned the Olympic champion.
In 1952, following the 1952 Summer Olympics, Adidas acquired its signature 3-stripe logo from the Finnish
athletic footwear brand Karhu Sports, for two bottles of whiskey and the equivalent of €1600.
The Trefoil logo was designed in 1971 and launched in 1972 just in time for the 1972 Summer Olympics held
in Munich. This logo lasted until 1997, when the company introduced the "three bars" logo (that had been
designed by then Creative Director Peter Moore), initially used on the Equipment range of products
After a period of trouble following the death of Adolf Dassler's son Horst Dassler in 1987, the company was
bought in 1990 by French industrialist Bernard Tapie, for ₣1.6 billion (now €243.9 million), which Tapie
borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, an expertise on which he
built his fortune.
Tapie decided to move production offshore to Asia. He also hired Madonna for promotion. He sent,
from Christchurch, New Zealand, a shoe sales representative to Germany and met Adolf Dassler's descendants
(Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few items to promote the company
there.
In 1992, unable to pay the loan interest, Tapie mandated the Crédit Lyonnais bank to sell Adidas, and the bank
subsequently converted the outstanding debt owed into equity of the enterprise, which was unusual as per the
prevalent French banking practice. The state-owned bank had tried to get Tapie out of dire financial straits as a
personal favour to Tapie, it is reported, because Tapie was Minister of Urban Affairs (ministre de la Ville) in the
French government at the time.
Robert Louis-Dreyfus, a friend of Bernard Tapie, became the new CEO of the company in 1994. He was also the
president of Olympique de Marseille, a team Tapie had owned until 1993. Tapie filed for personal bankruptcy in
1994. He was the object of several lawsuits, notably related to match fixing at the football club. During 1997, he
served 6 months of an 18-month prison sentence in La Santé prison in Paris. In February 2000, Crédit Lyonnais
sold Adidas to Louis-Dreyfus for a much higher amount of money than Tapie owed, 4.485 billion
(€683.514 million) francs rather than 2.85 billion (€434.479 million). They also purposely bankrupted Tapie's
company that owned Adidas, because only the company had the right to sue them.
India has been a very speculative market for Adidas. Despite this Dave Thomas, managing director of Adidas in
India is ambitious of the country's potential. The company hopes to double its revenue from Rs. 805 crores by
2020. In 2015, the company had signed Ranveer Singh a prominent Bollywood actor as a brand ambassador to
the company's products. Ranveer then was a budding actor. The company later decided to use the people's
almost religious adoration for the game cricket to promote their brand. It soon launched a new cricket campaign
in the country. The campaign was called FeelLoveUseHate with prominent Indian cricketer Virat Kohli. However,
in 2017, Virat Kohli was removed as the brand ambassador of the company. The cricketer later signed a major
deal with Puma India. The company also sells its products online through e-commerce websites such as Myntra,
Snapdeal, Jabong and Amazon. Adidas also has a website dedicated to the Indian audience that markets and
sells products to its consumers in India.
One of the main focuses of Adidas has always been football kits, and the associated equipment. Adidas remains
a major company in the global supply of team kits for international association football teams and clubs.
Adidas makes referee kits that are used in international competition and by many countries and leagues in the
world. The company has been an innovator in the area of footwear for the sport, with notable examples including
the 1979 release of the Copa Mundial moulded boot used for matches on firm dry pitches. It holds the accolade
of the best selling boot of all time. The soft-ground equivalent was named World Cup and it too remains on the
market.
Since 1970, FIFA, the world governing body of football, has commissioned specially designed footballs for use in
its own World Cup tournaments. The Adidas Telstar was the first ball commissioned for the World Cup in 1970.
The balls supplied for the 2006 World Cup, the "Teamgeist", were particularly noteworthy for their ability to travel
further than previous types when struck, leading to longer range goals. Goalkeepers were generally believed to
be less comfortable with the design of the ball, claiming it was prone to move significantly and unpredictably in
flight.
Adidas introduced the Jabulani for the 2010 World Cup. The ball was designed and developed by Loughborough
University in conjunction with Bayern Munich. The Adidas Brazuca for the 2014 World Cup was the first World
Cup ball named by the fans.
Adidas is one of the official sponsors of the UEFA Champions League, and the Adidas Finale is the competition's
official match ball. Along with the aforementioned Adidas Predator boot, Adidas manufactures the adiPure range
of football boots. Adidas named an official match ball of the UEFA Euro 2016 tournament the Adidas Beau
Jeu which translates to "The Beautiful Game" in English. Adidas provides clothing and equipment for all teams
in Major League Soccer.Adidas has also provided baseball equipment and sponsors numerous players of Major
League Baseball and Nippon Professional Baseball in Japan.
Adidas Baseball hardgoods are licensed to Dick's Sporting Goods.
From 1997 to 2008, Adidas sponsored New York Yankees.
Adidas' Superstar and Pro Model shoes, affectionately known as "shelltoes" for their stylized hard rubber toe
box, were fueled by, among others, coaches such as UCLA's John Wooden. Adidas drew about even
with Converse in basketball by the mid-1970s before both started to fall behind then-upstart Nike in the early
1980s. Subsequently, Adidas Superstar became very popular in the 1980s hip hop streetwear scene alongside
Adidas' stripe-sided polyester suits
From 2006 to 2017, Adidas was the uniform supplier of all the 30 teams in the National Basketball Association,
replacing the Reebok brand after Adidas' acquisition of Reebok. Adidas was replaced by Nike as the official
uniform supplier of the league after the 2016–17 season.
Adidas began manufacturing cricket footwear in the mid-1970s, with their initial target market being Australia.
Their shoes were a radical departure from traditional leather cricket boots which had remained basically
unchanged for decades, being lighter and more flexible but also offering less toe protection, so that it became
not uncommon to see batsmen who had been struck by the ball on the foot hopping around in pain. Having
continued to manufacture cricket footwear for many years, in 2006 the company finally entered the field of bat
manufacture in 2008 and currently their bat range includes the Pellara, Incurza, Libro and M-Blaster models.
In the 1990s, Adidas signed the superstar Indian batsman Sachin Tendulkar and made shoes for him.  From
2008 until his retirement, Adidas had sponsored the cricket bat used by Tendulkar. It created a new bat, 'Adidas
MasterBlaster Elite', personalized for him.
In 2008, Adidas made a concerted move into English cricket market by sponsoring English batting star Kevin
Pietersen after the cancellation of his lifetime deal with Woodworm, when they ran into financial difficulties. The
following year they signed up fellow England player Ian Bell, Pakistan opening batsman Salman Butt and Indian
Player Ravindra Jadeja.
In the Indian Premier League (IPL), Adidas sponsored the team Mumbai Indians from 2008 to 2014 and Delhi
Daredevils from 2008 to 2013. They were the official sponsors of Pune Warriors India in 2011 and 2012,
however the team was banned from IPL due to payment issues. In 2015 Season, Adidas sponsored Royal
Challengers Bangalore.
Adidas currently manufactures several running and lifestyle shoes, including the Energy-boost, and the spring-
blade trainers. The brand has built a strong runners' network within big European capitals, such as Paris' "Boost
Energy League". In 2016 the 3rd season launched. In Paris, the Boost Energy League gathers 11 teams
representing different districts of Paris.
Adidas launched two new color ways of the NMD R1 and one new color way of the NMD XR1 in September
2016. adidas EQT is a style of sneakers from adidas. It originated in the early 90s and relaunched in 2017. The
latest adidas EQT line released in a "Turo Red" Pack on 26 January 2017, and included models such as the
adidas EQT Support 93/17, EQT Support ADV, and EQT Support Ultra. adidas.com is one of the few online
retailers.
In November 2016, Adidas teased a sneaker made from ocean plastic. The shoe is created from a fabric called
"Biosteel". The shoe is called the "Adidas Futurecraft Biofabric." The material used is 15% lighter than
conventional silk fibers, and is 100% biodegradable. The shoe only begin to dissolve when it is put in contact
with a high concentration of the digestion enzyme proteinase, which occurs naturally. Once this happens, the
shoes can decompose within 36 hours. The shoe was never released.

1.2 DEFINATIONS

The name adidas came from the founder. Adolf “Adi” Dassler’s name. He used his nickname. Adi, and the first
three letters of his nickname. Adi, and the first three letters of his last name. Das, to create adidas.
The name Adidas (written “adidas” by the company) is an abbreviation of the name of founder Adolf (“Adi”)
Dassler. The Dassler family began manufacturing shoes after World War I. At the 1936 Berlin Olympics. The
American track-and-field Jesse Owens wore shoes that were reportedly a gift from Adi Dassler.
1.3 Consumer Obsession

Adidas Mission : To be the best sports bran in the world

The adidas brand mission is to be the best sports brand in the world. By designing, building and selling the best
sports products in the world. With the best services and experiences. In a sustainable way.
The consumer is at the heart of everything the adidas brand does. By constantly devlpoing desirable products
and inspiring experiences, the loyalty with consumers. Through “Creating the New’. The adidas brand has
refined its strategic direction, operational processes and incentive systems, to foster a culture of consumer
obsession across its entire organization.

1. Operating model

2. Creator archetype

3. Consumer centricity

1.4 Marketing investment

Adidas is focused on creation inspirational and innovative marketing concepts that drive consumer advocacy and
build equity. While the brand historically spent almost half of its marketing investment of partnership assets, with
the remainder on partnership assists, with the remainder of brand marketing activities such as digital,
advertising, point-of-sale and grassroots investment spent on promotional partnership. In addition, the brand will
consolidate and focus and impact on the creator and the brand’s key franchises. This will be achieved by
focusing on three priorities:

1. Reason to believe

2. Reason to buy

3. Sports Communities

1.5 ROLE OF CATEGORIES

The adidas brand has assigned each category a role and ambition until 2020, allowing the brand
to exploit short- and medium-term potential, while at the same time incubating long-term
opportunities for the brand. There are three overarching roles: ‘Lead’, ‘Grow’, and ‘Authenticate’.

1) Lead
To lead in the sporting goods industry, we believe it is a must to lead in the world’s most popular sport,
football. As such, the adidas brand aspires to be the number one football brand in every market by 2020.
This will be driven by focusing on winning the football creator in key cities as well as investing in the brand’s
football footwear franchises. In 2019, the adidas brand implemented innovations across its football footwear
 business with the continued focus on the Predator, ‘X’, Nemeziz and Copa franchises. Endorsement by a
globally renowned portfolio of player partners and further amplification via a wider portfolio of partners, such
as the FIFA Women’s World Cup, ensured global reach and exceptional engagement from creators,
especially during key consumption periods. In addition, 2019 marked the launch of the Arsenal Football
Club partnership. Reinterpreting the brand’s shared history for today’s creator, the club represents a key
partnership within the key city London approach.

 The adidas brand also strives for leadership in lifestyle in every market with Originals. Not only is adidas the
original sports brand, it also was the first brand to bring sport to the street. Brand credibility and heritage is
an important prerequisite to win the discerning streetwear hound consumer. These consumers are looking
for substance and craft and are inspired by stories and design.

 The brand continued to actively manage the lifecycles of existing classic franchises such as Superstar and
Stan Smith while also launching and incubating future icons like Ozweego and Supercourt to create a
balanced portfolio with healthy sell-through rates and inventory levels across footwear and apparel. In 2019,
the adidas brand continued to pioneer the future of fashion and streetwear culture by partnering with
influential brands such as Beyoncé’s Ivy Park, as well as Prada and Palace.

2). Grow
 The running category has been one of the adidas brand’s biggest growth opportunities across all
genders and price points. The brand’s goal is to double sales in the category by 2020 compared to
the 2015 financial year. The brand has introduced breakthrough innovations in materials such as
BOOST, pioneered new manufacturing processes through Speedfactory, and significantly scaled
up 3D printing together with its partner Carbon. To spur growth, amongst other things, adidas
Running has significantly refined and evolved its franchise strategy for the male and female athlete
across price points. The category will also continue to increase its investment in running
communities and grassroots activations through the adidas Runners communities in over 100
cities around the world, as well as drive the future of sport through digital experience and the
relaunch of the Runtastic app as the ‘adidas Running by Runtastic’ app. It will also keep playing a
major part in sustainability through the Run For the Oceans activation and the commitment to
recycled polyester programs together with Parley. In 2019, the brand launched Futurecraft Loop,
the first fully recyclable running shoe that was made to be remade.
 The second category where the adidas brand is focused on driving significant market share gains
is adidas Core. adidas Core targets a value-minded consumer, offering entry-price-point styles
across all categories. To ensure success, the adidas Core formula employs a ‘fast fashion’
business model. This means quick reaction to emerging trends through shorter lead times and
excellence in retail execution.
 The Training category is the adidas brand’s largest performance category and is also the apparel
engine of the brand. Led by cutting-edge innovation in fabrics and materials, the adidas brand
aims to significantly increase its apparel footprint through Training, which provides products for
general training purposes as well as for specific sports, and through Athletics, which is geared to
capturing the sports mindset of every athlete off the pitch. Given the high visibility of its products in
all markets, this category plays a central role in amplifying the brand.
3) Authenticate
 In order to be the best sports brand in the world, the adidas brand also needs to be true to
sports on a local level. As such, the brand will continue to cater to a wide range of sports
such as golf, basketball, American football, baseball, rugby, tennis, volleyball, swimming
and boxing. To maximize impact and resources, in key markets and cities, the adidas brand
will prioritize those sports that are most significant in terms of local culture, participation and
national pride.

1.6 Marketing strategy of adidas

Adidas employs more than 53,731 people in over 160 countries produce more than 660
million product units every year and generate sales of € 14.5 billion (all figures relate to
2014). These numbers alone can easily suggest that Adidas Group is quite a
complex organisation. True. But they keep things simple, lean and fast.

1.7 Segmentation, targeting, positioning in the Marketing strategy

of Adidas
Biggest sportswear manufacturer of Europe & one of the biggest in the world, Adidas is
segmented based on demographic, psychographic & behavioural factors. The Adidas
group has four brands in its strong portfolio – Reebok, Adidas, Rockport & taylor made
meant for different segment customer groups.

Adidas uses differentiated targeting strategy to target young adults, adults as well as

children who have passion for fitness & sports. Although it targets customers in the age
group of 13-40 years but majority of its customers are of 15-30 years of age who hail
from upper middle class or the luxury class of customers.

User & benefit based positioning are the strategies Adidas uses to create distinctive
image in the mind of the prospective consumer. By emphasizing the value of
quality products from a trusted brand Adidas is able to maintain its brand essence. The
portfolio is divided as follows.
  They have Adidas-performance in Competitive sports,
 Reebok & Reebok classics in Active sports & casual sports, &
 Adidas originals, Adidas Fun, Rockport in Sports fashion.

1.8 Mission in the Marketing strategy of Adidas

“The Adidas Group strives to be the global leader in the sporting goods industry with
brands built on a passion for sports and a sporting lifestyle. We are committed to
continuously strengthening our brands and products to improve our competitive
position”.

Tagline – “Impossible is Nothing”. This is one of the most famous tagline by the

company. This tagline, which showcases the importance of fitness and importance of
striving hard for anything you desire, is one of the biggest asset the company has, and
possibly summarises the marketing strategy of Adidas.

1.9 Competitive advantage in the Marketing strategy of Adidas.

One of the few competitive advantages that Adidas has is its distribution network,
its product quality and its brand equity. Globally it has 2400 stores accounting $4.3
billion business (2014 data). In order to associate itself with the community it has
sponsored many world sport events such as FIFA, UEFA, NBA, Cricket & Olympics. At
the same time, over the years Adidas has been known to give the best products in
the market which are always comfortable, beyond normal and long lasting.

Strong relationship with the organizations such as International Labour organization,

International Finance Corporation has given the company edge over competitors for a
sustainable business.

1.10 BCG Matrix in the Marketing strategy of Adidas.

BCG matrix helps in identifying the strategic position & future course of actions of
the SBU’s (strategic business unit).

Adidas has four brands under the Adidas group out of which:

Adidas & Reebok are stars; Both of these individual brands have a strong market

share but at the same time the competition in this sports and fitness segment is very
high. Other brands like Pume, Nike also fight for a large share of the market.

Rockport & Taylor made is question mark – This is because their market share is low but
at the same time there is a good potential for these brands. But when this potential will
actually benefit the company in a large way is yet to be seen.
1.11 Competitive strategies of Adidas
Using Porter five forces model to scan the competitive environment in sporting goods industry, the
researcher found that Nike, Adidas-Reebok, Puma, and Fila were the main brands in the athletic footwear
industry. However, in general, Asics commanded the fourth largest global market share in sporting brands as
shown in Appendix 1(Mahdi et al., 2015). Nevertheless, the industry must be aware of the entry of relatively
new competitors such as Under Armour which was founded in 1996. The entry of new companies in this
industry shows that the industry is not exclusively closed to new competition. Furthermore, there are several
small companies involved in production in sports goods branded in professional teams colors and logos
around the world (Nike, 2018). These small companies and replica goods shows the significant threat of
substitutes to Adidas and Nike products.

As part of their low cost strategy, both Nike and Adidas outsource production and materials from low cost
suppliers in low cost countries such as Indonesia, China and Thailand. For instance, Nike uses private
contractors in Vietnam to produce sneakers (Mahdi et al., 2015). However, Nike and Adidas have significant
powers over these factories and can easily switch between them. Elsewhere, Nike and Adidas designs their
products based on the customer feedback, observed changes in tastes and preferences among consumers and
emerging trends in the market. In this regard, customers in the footwear industry have significant power and
can easily switch between brands if not satisfied. Some of the factors that customers consider in selecting a
brand include better prices, higher quality and new style etc (Nike, 2018). To counter the power of the
customer, these companies have come up with different strategies not only to attract customers but also to
ensure high level of customer loyalty.

1.12Strategies of Adidas
Just like Nike, Adidas competitive strategy focuses on broad differentiation approach (Ghauri and Cateora,
2014). At the corporate level, the company focuses on innovation, production of new and unique products
and effective processes to assist in coping with competition. As part of this strategy, the company has
developed multiple brands and also taken over Reebok brands thus giving it competitive advantage
especially in its main market in Western Europe (Adidas, 2017). This multi-brand approach helps not only in
development of diverse brand portfolio but also allows the company to cater for all segments of the market.
Adidas also strives to keep a unique identity by focusing on its core competencies such as best marketing
and distribution channels in different countries, critical evaluation of consumer buying behaviors and
securing prime shelf space. Adidas has also embraced e-commerce so as to become more efficient and
appeal more to their customers as well as making the products more accessible to their customers around the
world (UKFT, 2017). Adidas also has a close control of its supply chain and its overseas producers so as to
facilitate customization of products which can appeal to a broad range of customers.

The organizational culture at Adidas also encourages employees to be creative and innovative. The culture
promotes flexibility and implementation of new ideas thus employees are able to produce highly innovative
goods with the use of latest technologies in the industry. To become a sustainable company, the company is
currently putting more emphasis on balancing the interests of the shareholders, needs of the employees as
well as the environmental concerns (Adidas, 2019). Further, the company focuses on faster production and
continuous improvement of infrastructure, processes and systems. To ensure production efficiency and high
productivity, Adidas has simplified group level operations by streamlining global product range and
consolidating the warehouse base (Spulber, 2007). The company is also implementing innovative speed
models so that it can quickly respond to the consumer needs.

Consequently, Adidas marketing strategy focuses on demonstrating its value as the leader in creation of high
performance product lines based on the specific needs of the athletes and consumers. In addition, Adidas
STP strategy is based on demographic, psychographic and behavioral factors (UKFT, 2017). For instance,
Adidas has a strong brand portfolio made up of Adidas, Reebok, Rockport and Taylor Made intended for
different market segments. In addition, Adidas uses differentiated targeting strategy to target young adults
and children who have passion for sports and fitness. Though Adidas target customers are in the age group
between 13 and 40 years, most of the customers are between 15 and 30 years of age and hail from the middle
class and the luxury class of customers (Adidas, 2017). Moreover, Adidas positioning is based on user and
benefits strategy. The goal of this strategy is to create a distinctive image in the mind of the prospective
consumer by putting emphasis on the value of quality products from a trusted brand. In this regard, Adidas
divides is brand portfolio into three categories. First, Adidas is intended for performance in competitive
sports. Second, Reebok and Reebok classics are for active and casual sports while Adidas originals, Adidas
Fun and Rockport are for sports fashion (Adidas, 2019).

1.13 Growth opportunities for Adidas

There are at least three growth opportunities that Adidas can take advantage of based on their competitive
strategy and marketing objectives. Firstly, Adidas should consider moving into new markets to fend off
competitors and expand its market shares. Currently, Adidas is over-reliant on its core market of Western
Europe. Though North America, Asia and Eastern Europe are also emerging as major markets for Adidas, it
is already facing stiff competition in those markets from Nike, Asics, Puma and other emerging competitors.
In addition, Adidas main market of Western Europe is facing significant uncertainties due to the ongoing
Brexit process. Since it is still difficult to estimate the real consequences of Brexit on demand for Adidas
products, the company should exploit two other main market options i.e. increased penetration of the world’s
largest market for sporting goods, North America and development of new markets in emerging economies
(Donaldson, 2016).

North America is the single most important market for sporting goods in the world. North America accounts
for approximately 40 percent of total sales of global sporting goods industry. In this regard, penetration of
North America should be a priority of Adidas. In this case, the company can increase its investments onto its
US business, people, infrastructure and marketing (Worrell and Miller, 2018). For instance, the company
should invest more in US popular sports such as ice hockey, American football, basketball and baseball and
so on. This way, the company can be more in touch with the American consumer and improve their
penetration in this market. In addition, the new signed North American Free Trade Area (NAFTA) offers a
great opportunity for Adidas to target Canada and Mexico as well using a single North America strategy. In
the meantime, Adidas must also consider developing new markets in emerging markets such as India, Latin
America and Middle East. Though the demand for high end sporting goods is still low in these markets, it is
predicted that these regions will see the highest growth of middle income people (Safonovs and Upadhvav,
2017). In this case, developing marketing and distribution networks in these markets will give Adidas first
mover advantage over Nike and other competitors leading to improved revenues and stronger competitive
position in the global market for sporting goods.

1.14 Adidas Market Segmentation, Targeting and

Positioning
Adidas is a multinational corporation, founded and headquartered in Germany that designs and
manufactures shoes, clothings and accessories (Wikipedia Contributors, 2019). Adidas is well
liked by many as they sell a different range of items such as men’s and women’s clothings, shoes
and accessories. The benefits and services of Adidas are that they are putting in continuous efforts
to strengthen the brand to maintain in a competitive market by improving the quality, looks and
designs in order to exceed customer’s expectations. Adidas is also a global organisation that
focuses on being creative to attract more customers to achieve an outstanding sales target.
(“Adidas Mission Statement | eNotes,” 2014).
The purpose of this report is to educate you about how Adidas segment, target and position their
market and its progressions with their new and improved products with different targeted
consumers

1.15 MARKET SEGMENTATION

Market segmentation divides a market into distinct groups of buyers based on demographic,
geographic, psychographic or behavioural characteristics. Through my secondary research, I have
found out that Adidas segments their market into different groups due to different customers’
preferences and likings. They might need a separate product or marketing mix of benefits or value
from the products they purchase. In addition, it also provides a clearer identification of market
opportunities and particularly analysis of gaps in the market.

Adidas have different segment of products of which includes Performance, Originals, Style and
Neo. Adidas Originals provides limited edition type of casual and heritage fashion clothings and
shoes that are usually street-styled with more colours but less of a sporty look, whereas the typical
Adidas appeals more to people to play sports (HIGHSNOBIETY, 2018) Secondly, Adidas
performance was designed to maintain their loyalty towards athletics. They provide products
mainly focusing on football, soccer and training and had even collaborated with sports groups like
Chealsea FC. (HB Team, 2013)

Thirdly, Adidas Style have clothes that are sporty but trendy at the same time. It is usually popular
among the youths.

Adidas Neo is the latest sub brand which is launched to target younger age groups of customers
from 14-19 years of age. (“adidas NEO,” 2019)

Customers with higher social status tend to purchase products from Adidas that are on the pricer
end. Customers with lower social status are able to purchase items that are preferably more
affordable for them. (Psychographic characteristics)

Customers who loves sports will tend to purchase sporty items from Adidas whereas on the other
hand, customers who loves street styled clothings will probably buy the products they want from
Adidas Originals or Style as they have the same preferences. This happens as they have the
same behavioural characteristics which they are able to relate to one another. (Behavioural
characteristics).

Demographic segmentation studies the human populations in terms of size, age, gender,
occupation, and other statistics (“What Is Demographic Segmentation & Why Is It Necessary?
[Examples],” 2019). For example, Adidas have clothes, accessories, shoes that are suitable for
males and females ( adults / kids ) in order to provide a wider range for different age/ gender
groups which would then attract more customers. With this, Adidas is able to improve ability to
closely tailored products or services according to the individual market segments requirements and
improve organization’s ability to compete effectively and profitably, possibly avoiding strong
competitors.

1.16 MARKET TARGETING

Adidas targets existing groups of customers who love and have a passion for fitness and sports as
well as people who supports Adidas since the start. They target 20-30 years of age groups who
are athletics or young people who loves sports. (“Who Is Adidas’ Target Market Today?,” 2019)
Adidas is starting to focus on age groups of 13-18 athletics as they have a strong believe that they
are the next generation of athletics that will improve the brand and the most influential consumer
group(“Who Is Adidas’ Target Market Today?,” 2019). However, the brand is quite popular among
40-65 years of age groups as well.

Adidas products are usually higher priced due to the quality and brand equity in the market.
Hence, they target customers of upper middle class/ high end customers. In recent years,
smartphones have brought many new lifestyle products for Adidas originals target group which
benefits the brand as it has a larger customer base. Alongside with this audience, Adidas targets a
smaller group of customers who are not into sports that purchases shoes/ clothing items as a
fashion statement, they are between 15-25 years of age groups. It is very difficult for Adidas to
connect to all customers in large and diverse market as if they try to target everyone, the message
they are trying to deliver will be unclear and it will not be able to satisfy any customers at all.

1.17 MARKET POSITIONING

Adidas position through speed, cities and open source. (“Strategy,” 2018) They deliver customers
with products that they are looking for to where and when they want them which is very efficient.
They deliver to target cities which are shaping the global trend. Furthermore, Adidas tries to
collaborate and innovate with athletics, social influencers, reporters to co-establish the sports
culture together with Adidas. It also includes the marketing mix which consists of place, price,
promotions and product. Adidas is sold in their retails outlets that can be found in most shopping
malls around the world. Some of Adidas products can be found through distributors and market
intermediaries such as JD sports and Aw Lab. (Place)

The prices in Adidas are rather affordable but there are still some products that are higher priced
than usual as it may be a new product that is introduced in the market recently or is a uniquely
designed item. (Price)

Adidas uses social media to promote their items to notify online users of the newly added or
promotion items that may catch their eye. For example, sometimes when I am surfing the net such
as Instagram and Facebook, I happen to chance upon Adidas advertisements showing me the
new designs that are available in stores which I may be interested in. This serves as a more
convenient way for customers to look for items they want since many have smartphones these
days.
Adidas also involves influencers/ athletics for sponsorships and collaborations. Through this
method of marketing, Adidas is able to increase their sales with their help. For example, users of
internet are able to see the posts of the influencers using the product and showing how good the
product is. This will then convince the customers that it is worth buying that product and may
actually really purchase it. (Promotion)

Adidas products are usually designed with three-stripes with unique colours and designs which
may appeal to different groups of customers. Adidas is also considered as one of a luxury brand.
(Products).

1.18 Marketing Mix of Adidas

Marketing Mix refers to the foundation model of any business which is centred around mainly the
7Ps which are product, price, promotion, place & distribution, people, process and physical
evidence. Companies lay out strategies and marketing techniques around these to reach out to
their target audience to achieve their marketing objectives.

Let us understand the following 7 Ps of Adidas-

 
1. Product Strategy of Adidas
Adidas deals in various product lines including footwear, apparel, accessories, football kit, golf
equipment, etc. The range of Adidas products is also divided according to different sport games for
which Adidas provides kits and equipment. Some of the sports games where the company majors
in supplying the team kits globally are: Association football, Baseball, Basketball, Cricket,
Gymnastics, Ice hockey, Lacrosse, Running, Skateboarding, Tennis, Kabaddi, and Golf. 
Adidas has gained huge popularity by opening its subsidiaries including Reebok, Runtastic,
TaylorMade, and Rockport. Though there are around 110 subsidiaries of Adidas Worldwide, the
subsidiary that overtaken Adidas itself is Reebok footwear and apparel. Whereas Runtastic is a
digital health and Fitness app, TaylorMade is centred on golfing clothes and Rockport offers
outdoor footwear, apparel and accessories.
Though this company offers various products, its major product line is Footwear. Given that
Adidas’ foundation was built on footwear itself, its footwear is still deemed the most robust and
athletic in the market, followed by its apparel and accessories

2. Price strategy of Adidas

Adidas includes Skimming Pricing and Competitive pricing in its marketing mix. Competitive prices
are used for its mill products to compete with brands like Nike and Puma and skimming prices are
used for the newly introduced products in the market. 
Under Skimming pricing, high prices are kept for newly launched products to maintain the
exclusivity and gradually the prices are reduced with time until it reaches market average. 
When it comes to Apparel, Adidas mostly uses a skimming price strategy because of its brand
equity. Thus, the Target audience of Adidas includes the upper-middle class as well as high-end
customers.
Matter of fact, the High-price strategy of Adidas makes it a luxury brand among people. Folks go
for Adidas even when the prices are high because psychologically, they think that high prices
mean high quality and confirmation of authenticity.
 3. Place & Distribution Strategy of Adidas
.Adidas has its production houses in around 55 countries and has 800 factories pinned across
different continents. The major source through which its products are sold is Retail Stores i.e.,
Adidas outlets. It has more than 2800 retail outlets globally.
The second major way of distributing Adidas products is through multi-brand showrooms. The
showrooms get the products from the distributor. These showrooms put on display the brands’
products.
In today’s world, no major brand is complete without an Online Store. Thus, Adidas has an online
website too and some of the products like apparel are sold through various famous fashion stores
like Myntra and Amazon too. 

4. Promotion Strategy of Adidas

It is a well-known fact that the TV ads of Adidas are Adrenaline pumping. Knowing that Adidas’
strength is derived from sports, their ads are robust and passionate. The major source of
promotion for Adidas is marketing through television.
Another major promotion method of Adidas is product placement. Product placement means
where references to brands are made by featuring them in other work like movies and television
programs. The popularity of Adidas is also because of all its tie-ups with sports icons such as
Lionel Messi and Ronaldinho.
Along with tying up with major sports celebrities, Adidas also sponsors some popular sports teams
such as Real Madrid and in football, Great Britain which helps the company in building its brand
image.
Apart from this, Adidas has been known for its creative marketing campaign and event marketing.
Social Media is another way through which this company keeps up with the folks across the world.
There are millions of followers of Adidas on both Facebook and Instagram. The sports angle in
their social media handle makes it more magnetic and appealing. 
The most recent campaign by Adidas “Own the Game” was introduced in virtual investor and
media day. The campaign is to strengthen and uplift the authenticity of the brand and proliferate
the company’s activity in sustainability. This campaign has been created with the expectations of
sales and profitability until 2025. 

 
5. People Strategy of Adidas
There are 4 main departments under Adidas which are contributing to its smooth and systematic
working-
1. The first one is Mediator, These people work with the suppliers to obtain the raw materials and
have a significant role in improving the quality of the final product.
2. The Sales Team is the key element for the sales and marketing of the company. They are trained
with convincing and marketing techniques to help customers find their relevant choice.
3. People working at retail stores, these people directly help the customers on-site by answering their
questions and giving them a good experience at the store.
4. The customer support department helps customers when there is an issue with the product and
communicate with the consumer to resolve the problem.
 5.Process Strategy of Adidas
Adidas has an intensive process from ordering a product to delivering it. They have a system
installed in retail stores wherein retailers can inform whenever the inventory is low, they do this to
keep the stores full and products available. For the website, they have a computer-based system
where the order is received and the relevant product is shipped to the delivery chain.
The company is also extensively involved in market research and customer feedback to
understand consumer choices and problems, to bring changes accordingly.

7. Physical Evidence Strategy of Adidas

Adidas has a website that is user-friendly and helps customers view their products in high-quality
images. They also have a customer service department that helps consumers with all their issues.
For their retail stores, the company has separate specially designed shelves to make it easier to
locate products. The products are also packed in different colourful packaging, again to make them
unique and easily identifiable.
So, these were the 7P’s of Adidas, we can see how the company has used everything perfectly in
their favour which has led to its strong brand identity. Let’s sum up the above marketing strategy of
Adidas.

 
 CHAPTER : 2

REVIEW OF LITUREATURE

Adidas Group, the world’s second largest producer of sporting apparel has had a long
and rich legacy of producing some of the highest quality and most technologically
innovative sporting equipment particularly footwear. Champion athletes and sports
teams trust the three stripes of adidas for helping them to achieve outstanding
performance when they need it most. A world leader, adidas commands nearly a quarter
(22 %) of the worldwide athletic footwear and apparel market. In the American sporting
footwear and apparel market, the largest market for sporting footwear and apparel in the
world, adidas holds 22% market share. In the race to be the world leader in sports
apparel, adidas trails behind only Nike, which holds a worldwide market share of 33%.
Adidas may currently trail behind Nike, but its rich legacy and focus on innovation, in
addition to a new guiding strategy that perfectly blends marketing and technology can
help adidas sprint ahead of Nike and grab the lead in both the American and emerging
markets of Asia and Latin America.
The global footwear industry is evolving a governance structure for CSR activities.
Many transnational corporations and international organizations have embraced
corporate social responsibility (CSR) to address criticisms of working and
environmental conditions at subcontractors ' factories. While CSR 'codes of conduct '
are easy to draft, supplier compliance has been elusive.
Procedia Engineering (2011)

Directional energy transfer is a term used to describe the phenomenon where energy is
returned as force acting in a direction other than the direction in which energy was put
into the system. Directional energy transfer in running shoes increases athletic
performance as running speed by transferring energy to the direction of locomotion.
The concept can be applied to the Adidas Bounce™ style shoe. The shoe uses tubes with
a Θ-shaped cross section incorporated into the shoe sole. Directional energy transfer
can be optimized if the Bounce tubes of Adidas shoes are rotated and the overall
stiffness changed (by altering the tube length). There are a number of parameters that
relate to directional energy transfer. These parameters are: energy transferred (as a
percentage of vertical input energy); energy transferred (absolute quantity); energy
returned in the horizontal direction and total system energy. The aim of this paper was
to investigate whether the optimum solution changed if the runner accelerated during a
stride. The simulations showed that there is very little change in optimum design angle
and that if additional rearward deflection of the bounce tube is permissible performance
(energy transferred and returned) actually improves when the runner accelerates.

Melissa Monika Wagner (2020)

The textile and fashion industry has had significant technological developments but is currently
criticised for its environmental and social impacts and for being a major contributor to waste. The
rise of the circular economy (CE) has promoted more sustainable concepts, including the trending
of recycling strategies to add value to the textile and plastic waste. However, adding value to
products and for users implies technical upscaling and clear communication about the benefits of
recycling. This paper presents a systematic literature review (SLR) and explores the state of the
art of recycled textiles (RT) and circular fashion (CF) as perceived by humans. The literature
review was performed on the basis of journal articles, book chapters, and conference papers using
the ScienceDirect (SD) and Web of Science (WoS) databases. The review identified that a
significant proportion of consumers from different countries have a basic understanding of
sustainable products but that there have been differences in consumers’ attitudes towards
sustainable purchase, use, consumption, and post-purchase behaviour. Diverse and even
contradictory results occurred concerning the relationships between RT and CF and their
perceived product attributes in terms of quality and functionality, as well as social-cultural factors.
Manufacturers’ and brands’ perceived values of RT were observed to be influenced by different
factors on the basis of the recycling system and cultural values, while designer attitudes towards
sustainability were observed to be influenced by external factors. This review contributes to the
creation of three main implications in terms of environmental impact and awareness, including
actions and concrete proposals for RT and CF. 

digitalcommons.unl.edu (2019)

Adidas is a well-established brand in the world of sportswear and lifestyle clothing. In

recent years, the company has been regaining success after a period of stagnation.
Spurring this success is the renewed popularity of old classic shoe models and a
surge in the lifestyle clothing trend. While adidas is doing well, it is not the top
sportswear company in the world and is far behind in North America. In an attempt
to boost the recent success even further, this thesis analyzes the current situation
that adidas faces including its strengths, weaknesses, opportunities, and threats.
With this information as a background, this paper then discusses potential new
strategies for adidas, ultimately deciding that obtaining a larger number of star
athlete endorsements is a strategy that could quickly make a large impact for the
company.

D Holtbrügge, T Schuster (2017)

In 2015, the sporting goods industry was comprised of numerous companies
engaged in the
manufacturing and retailing of sporting goods such as athletic footwear, apparel, and
hardware. Adidas and Nike were the market leaders in worldwide revenue in 2015
with
about 14.53 bn.€ and 25.14 bn.€ respectively. Other major companies were VF
Corporation
(11.12 bn.€), New Balance (2.98 bn.€), Puma (2.97 bn.€), Under Armour (2.79 bn.€),
Asics
(2.33 bn.€), and Columbia Sportswear (1.90 bn.€). The high number of relatively
small firms …

CHAPTER : 3

RESERCH METHODOLOGY

INTRODUCTION:

Research methodology is the specific procedures or techniques used to identify, select, process,
and analyze information about a topic. In a research paper, the methodology section allows the
reader to critically evaluate a study's overall validity and reliability.

Customer satisfaction, a term frequently used in marketing is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."
In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as
a key performance indicator within business and is often part of a Balanced Scorecard. In a
competitive marketplace where businesses compete for customers, customer satisfaction is seen
as a key differentiator and increasingly has become a key element of business strategy Purpose of
consumer satisfaction Customer satisfaction provides a leading indicator of consumer purchase
intentions and loyalty. Customer satisfaction data are among the most frequently collected
indicators of market perceptions. Their principal use is twofold: 1. Within organizations, the
collection, analysis and dissemination of these data send a message about the importance of
tending to customers and ensuring that they have a positive experience with the company’s goods
and services. 2. Although sales or market share can indicate how well a firm is performing
currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
make further purchases in the future. Much research has focused on the relationship between
customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most
strongly realized at the extremes.

RESERCH BRAND :
The adidas brand has a long history and deep-rooted connection with sport. Its broad and diverse
portfolio in both the Sport Performance and Sport Inspired categories ranges from major global
sports to regional heartbeat sports and local sneaker culture. This has enabled the brand to
transcend cultures and become one of the most recognized and iconic, on and off the field of play.
adidas is positioned as a premium sportswear brand that caters to all, from elite professional
athletes and teams to any individual who wants to make sport part of their lives, spanning
footwear, apparel, and accessories and gear. Driven by a relentless pursuit of innovation as well
as decades spent accumulating sports science expertise, the brand helps athletes of all levels to
make a difference – in their game, in their life, in their world. This is anchored in our company’s
purpose that, through sport, we have the power to change lives. In 2020, the adidas brand
accounted for 91% of the company’s sales.

RESERCH PROCESS :

Market research, Adidas can find out how successful their products would be in new markets. The
business would use primary research to find out about the new market. Product development –
This is when the business develops a new product to sell to an existing market.

 It helps the marketing planning process on decisions about objectives, strategies and
tactics.
 Marketing research is essential for establishing what customers want and how to reach
them. Adidas would have to find out the requirements of customers to come up with
strategies on new product development.
 It looks at the changes in society and technology. Adidas can use social media to find out
the new fashion trends to find out what customers are interested in.
 The business can find out about competitors. For example, it can help Adidas to identify
competitor’s products and prices and that way the business can come up with tactics.

EXPLOTARY RESERCH :

The method I used for exploratory research was

Primary and Secondary Research

There are two types of research: primary and secondary. This type of information can be gathered
internally (within the business) or externally (outside of the business).

 Primary research is information that the business has gathered first-hand and has not been
gathered before and it is data that is gathered for a specific purpose. Adidas’ internal
information can be the sales figures for their products and their external information can be
focus groups, face to face interviews in which the researcher meets the consumer and asks
them questions on things they like. Mystery shoppers (mystery shoppers are people who
visit a shop without revealing their true identity so they can assess the quality of products),
questionnaires and surveys so they find out what customers want and to see how successful
their products are.
 Secondary research is information that has already been gathered before and it is easy for
the business to access it. Adidas’ internal information can be reports from sales which is to
see how much each customer spends or how often they shop. Previous market research
which can help Adidas decide on tactics for the future. Their external information can come
from magazines, books, newspapers, government.
It is more cost effective for Adidas to do the secondary research first before the primary research.
This will allow the business to have an understanding of the market and it allows the business to
develop assumptions about what customers like which means that the business can use the
primary research to test the assumptions.

Qualitative and Quantitative Research

This is another type of research.

 Qualitative research is subjective and often open-ended. It involves finding out a person’s
views on something and they get results in wide range of answers based on personal
experiences. Adidas would use qualitative research to ask customer questions about their
goods and services like what they think of the product they bought or why they bought it
and come up with ways to improve this to the standards of customers.
 Quantitative research involves numbers and figures that can be analysed. If there are no
numbers involved then it is not quantitative research. Adidas might use this kind of research
to find out how many people buy the same product or how many people like sports that
way they can see how popular the product is and they can aim their products to a certain
type of audience. They can also use questionnaires since they have questions that give a
series of answers to choose from.

b) Adidas would use the results of market research for marketing planning. Marketing planning is
developing marketing strategies that will help a business achieve their goals. They would use
marketing research to develop:

1. Objectives – They are goals that the business sets for itself. Objectives can be expressed in
terms of profitability and growth or market share. With the market research Adidas could
have objectives like increasing sales, by the end of the year
2. Strategies – It is a long-term plan for success. Adidas can use Ansoff Matrix for their market
planning. Ansoff Matrix is a growth strategy developed by Igor Ansoff in 1957 and it looks
like this:

Product / Market Present New

Present Market penetration Product development
New Market development Diversification

 Market penetration – is when a business sells the same product in the same market. Adidas
make sportswear products such as clothing and shoes so their market would consist of
people who are into sports. The business could grow if they increase the share of current
markets with current products through lower prices to increase the market share and sales
volume. Adidas would use secondary research since they already have information about
the market they are selling.
 Market development – This is when a business sells the same product but in a new market.
For example, Adidas could sell their products in another country. By doing market research,
Adidas can find out how successful their products would be in new markets. The business
would use primary research to find out about the new market.
 Product development – This is when the business develops a new product to sell to an
existing market. Adidas could use qualitative data to find out what customers like and
therefore develop a product using their feedback.
  Diversification – This is selling a new product in a new market. For example, Adidas could
sell a new sportswear product that would enter a completely new, unrelated area. The
business would have to carry out a quantitative and qualitative research about the new
products and new market.

3. Tactics – They are plans and methods used to achieve a particular short-term aim. It is a
marketing mix that provides a good framework for developing marketing plans. This
includes the 4 P’s:

 Product – A product is anything that can be offered to the market to satisfy customers.
Products can include physical goods, services, events, places and experiences which is a
combination of goods and services that are offered to the clients. By doing marketing
research, Adidas could develop their products in ways that are up to customers’ standards.
 Price – This is the amount of money that customers would have to pay for a product. Prices
can be controlled and be flexible. For example, Adidas offers student discounts for their
products. Adidas can use marketing research to come up with prices that are suitable for
their clients.
 Place – It involves where and how customers can get their products. For example, Adidas
has physical stores all over the world but they also have an online store where customers
can buy things in case, they can’t go to the store physically.
 Promotion – This involves advertising, sales promotion, public relations and personal selling.
These are ways in which a business makes sure that customers know about the products. By
using market research, Adidas can develop ways to attract their customers.

c) There are some limitations of the marketing research methods in part a. It doesn’t matter how
big or small a market research project may be, any research that is not done correctly will not get
accurate results. When a business such as Adidas is making a decision based on their research, it
must take into account the limitations that there are. Both primary and secondary research have
their limitations which means that the results may not be valid and accurate. Some limitations can
be that:

 The sample size may be too small which means that there will be limited results.
 The business may have researched the wrong people. For example, a sportswear business
like Adidas asking musicians about sports.

 Validity: A valid method is when the result that is given is truthful. Secondary research can
be a disadvantage to Adidas since some of the information may be old as the data has been
collected in the past. This means that the business will not be able to use secondary
research because the results will not match their idea for new product or service. The
information wouldn’t be valid either because the organisation or individual that carried out
the research in the past could have altered the results and this could be a problem for the
business because they would do market planning with fake results which can create a failure
in their new product or service. They also wouldn’t be able to use the information as it is not
done truthfully.
 The research is conducted in the wrong place or the wrong time and the researchers don’t
have the right skills to carry out the research and it can cause the research to be biased.
 Cost and time effectiveness: This is how much it costs to do market research and how long it
takes to do the research. The business may have to spend a lot of money to use the right
techniques and avoid making a wrong decision in which it can be expensive to the business.
 Research can also be time consuming as different techniques take more time than others.
For example, the manager may not have the results of the research at the moment he/she
wants to make a decision and if the research is rushed then the results may not be reliable.
Some of the limitations of primary research is that it can cost a lot of money to hire people
to carry out the research, it can also cost money to train workers who don’t have the right
skills to do the research. People would also have to travel from one place to another.
Travelling can cost money and it can also be time consuming since travelling can take hours.
Another reason why primary research is time consuming is because sometimes researchers
can have difficulties in accessing information.
 Accuracy: Sometimes research may not be accurate because researchers will not be using
the appropriate technique or people in a focus group may not reveal their true opinions.

Market research can only provide the information, it cannot provide the business with a strategic
decision. Doing observations will also be a limitation for the researcher as it does not give accuracy
of age or social class.

d) Some recommendations that have the ability to improve the validity of the marketing research
used to contribute to the development of Adidas’ marketing plan would be that Adidas would
need to make sure that the sample size that will be used for their research is big enough to get the
right amount of information. In the event that the business decides to use primary research such as
questionnaires as a form of market research, they need to make sure that they know the number of
customers and the type of audience that they will send the questionnaires to. For example, if
Adidas were to send around 200 questionnaires for their research and they only get back 15
questionnaires then the data will not be reliable. This can be due to the fact that the questionnaire
was too long which made it boring to complete or the questions were too complicated so it was
difficult for people to answer them. However, if the business receives 100 questionnaires out of the
200 that they sent then the data will be reliable and they can also make the questionnaires better
using that data that is received. When gathering qualitative data, Adidas would need to make sure
that their questions are easy to understand so people can answer them and that are quick to
answer. In addition to this, Adidas would also need to make sure that the questions are straight to
the point and specific to what the company needs so time is not wasted. When questionnaires are
designed carefully it can improve the validity of market research for the business. Some other
recommendations that have the ability to improve the validity of marketing research can be that
for Adidas, the company should train researchers on how to carry out a research or they can also
hire a person who has experience in market research. Training researchers can be useful due to the
fact that can save up money and by hiring a specialist, it will be a quicker method for market
research and it can also help the business grow. By doing this, it will avoid bias and the information
will be accurate which will help Adidas to create a very good product or service. Researchers in
Adidas need to make sure that when doing primary research, they do research on the right people.
For example, since Adidas is a sportswear business, they would usually target athletes and anyone
who is into sports. They should also carry out their research in the right place and at the right time
so they can gather more accurate results. Lastly, If Adidas decides to use secondary research then
they will need to make sure they get the information from reliable sources such as Mintel. This can
be useful given the fact that the company will be using information that is up to date, the results
will match with the strategies the company has in mind and the information will not be altered
which means that the data will be more accurate.

Task 2
Market segmentation is the sub-diving of a market into distinct subsets of customers where any
subset may conceivably be selected as a target market to be reached with a distinct marketing. If a
business sells a certain product, the market would be anyone who might buy the products. A
business can’t make and advertise only one product that meets the needs of everyone. Each
market segment has different types of needs and preferences so marketing has to be targeted
towards meeting the needs and preferences of customers. Customers may be influenced by a wide
range of factors. There are 4 different types of segmentation:

 Geographic segmentation – this depends on the regions/countries, cities/rural

 Demographic segmentation – this is grouping customers on the basis of age, gender,
income, religion, family size
 Psychographic/Lifestyle segmentation – segmenting customers depending on activities,
interests, opinions
 Behavioural segmentation – purchase occasion, benefit sought, user status, end use

3.2 Research onion

The model for “research onion” as created by Saunders demonstrates differentiated legs and phases
involved in the process of developing the research works. On the other hand, it can be stated that the
onion layers are useful in providing detailed descriptions and explanations of different steps included
and followed by the researcher’s during the ongoing research (Saunders et al., 2015). Based on the
model and the included elements, the components for this research have been identified.
 Figure 1: Research Onion
(Source: Kumar, 2019)

Reference used Methodology integrated Justification

“Berge, F. and Gaede, J., 2017.

Inductive research approach, These methods were in
Consumer Engagement in Social
exploratory design, secondary collaboration with the objectives
Media: A netnographic study of the
data from online posts and and derivatives related to the
company-owned Facebook pages of
sources topic of research
Nike and Adidas.”

“Dumitrescu, L., Orzan, G. and Fuciu,

M., 2015.Understanding the online
Deductive research approach, These methods helped the
consumer behaviour and the usage of
exploratory design, primary data researchers identify the utility o
the internet as a business
collection through survey on 267 internet as a marketing tool in
environment–a marketing
participants business operations 
research. RevistaEconomic?, 67(3),
pp.63-79.”

“Pappas, N., 2016. Marketing These methods helped in

strategies, perceived risks, and Deductive approach, conclusive understanding the aspects of
consumer trust in online buying design, primary data collected online buyer behaviour and the
behaviour. Journal of Retailing and through interviews marketing process brands use
Consumer Services, 29, pp.92-103.” online

“Ewerhard, A.C., Sisovsky, K. and Abductive approach, exploratory Selection of these methods
Johansson, U., 2019. Consumer design, primary data collected helped in fulfilling the research
decision-making of slow moving through structured interviews on objectives and understanding th
 consumer goods in the age of multi-
channels. The International Review of Adidas marketing strategy
12 participants
Retail, Distribution and Consumer utilised by businesses
Research, 29(1), pp.1-22.”
Table 1: Choice and justification of methodology
(Source: Created by the learner)

3.3 Which research philosophy is considered in the present study of Adidas marketing strategy?
According to the statement of Fletcher (2017), “research philosophy” is demarcated as a fixed
conjunction of beliefs, regarding the process or pathway through which information about various
phenomenon could be collected, evaluated, analysed, and applied. Primarily there are three types of
research philosophy that researchers need to consider while conducting a study; they are identified as
positivism, interpretivism and pragmatism. Each philosophy is associated with a specific set of data
collection and analysis method that would benefit the researcher in achieving the results expected
through the study (Quinlan et al., 2019).

3.3.1 Justification for selecting research philosophy (positivism)

Although there are different research philosophies applicable in the research as per the problems
identified in the study, positivism philosophy has selected during this investigation as this has helped
the researchers in gathering different statistical as well as scientific information from the sample
participants (Kennedy, 2017). One of the main reasons behind selecting this philosophy is its ability of
revealing different hidden or less explored information associated with the current Adidas marketing
strategy, along with its existing loopholes. The positivism philosophy has been selected for the
completion of this study, since it enables performer to gather primary data through surveys as per the
requirement of the study (Ray, 2017). Interpretivism philosophy is utilised in a study with only
secondary data whereas pragmatism philosophy is implemented in studies that requires inclusion of
both primary and secondary data. Since, this study would require interpretation of primary data only,
positivism philosophy is utilised. 

3.4 Research approach

“Research approach”is characterised as a set of planning, along with different procedural elements,
through which the researchers can get an idea of the broader methodological assumptions for the
investigation. The major approach types are- deductive, abductive and inductive approaches. These
enquiry attitudes support the scholar to conclude the course of the study through accurate data
collection and analysis that are in alignment with the known premises of the study (Gray, 2019).
Cuervo?Cazurraet al. (2017) mentioned that research approaches are generally selected as per the
contexts of the problems identified during the preliminary investigation.

3.4.1 Justification of selecting research approach (deductive)

Since the research aims to analyse the existing Adidas marketing strategy and models in UK market,
therefore, deductive approach has been applied during this investigation process. The deductive
approach helps in understanding the progression of collecting and analysing information as per the
known premises of marketing applied in the study. Since the completion of the study would not
produce new theoretical approaches and would continue to broaden the existing Adidas marketing
strategy and their impact, deductive approach is essential for the fulfilment of research objectives.
Abductive approach would sanction the examiner to achieve testable outcomes through known
attributes. Similarly, an inductive attitude would offer acanvasser to develop untested conclusions
through the framework of known premises.

3.5 Research design

Research design helps in selecting or choosing other integrated components through a logical as well as
coherent way. According to the statement of Attia and Edge (2017), a research design can help in
ensuring the ways of addressing research problems. The two main research designs that help
researchers recognise the data collection and analysis framework for their study are exploratory and
conclusive research designs. The exploratory design helps researchers conduct studies based on the
existing aspect of study in fulfilling the research objectives. Conclusive or explanatory designs help
researchers in explaining the internal functioning of the known aspects. This is also supportive in
constituting a blueprint for the collecting, measuring, and analysing the collected information.
3.5.1 Justification for selecting research design (exploratory)
In this case, since the researcher(s) aimed to investigate about the existing Adidas marketing strategy
specifically in the UK market, therefore, it can be easily assumed that they focused on ‘exploring’ the
existing things, rather than explaining or describing it. Apart from this, the ‘research design’ has also
facilitated the scholar(s) in identifying the intended issues of the existing marketing strategies of
Adidas influencing the behaviour of the customers, along with some positive and progressive
recommendations. Since, this study would require exploring the internal aspects of Adidas marketing
strategy on the UK market, selection of “exploratory research design” is justified inaccomplishment of
the study. 

3.6 Methods of Data Collection

Since the investigation includes direct involvement of the company for analysing the existing Adidas
marketing strategy and its impacts on the UK customer population, therefore, primary quantitative
methodology has been performed for gathering information regarding the topic. The study process
included quantitative methods, through which the researcher(s) has collected different real-time and
unbiased information from the sample. Information from the 104 customers of Adidas would be
gathered through survey monkey.

3.6.1 Justification for selecting data collection methods (quantitative)

The study will utilise elements of primary data collection methods through survey process. As per the
requirements, the researcher(s) has surveyed 104 Adidas consumers through online platform and
closed-ended questionnaire using survey monkey. The survey questions will be set as per the research
questions and distributed online to consumers of Adidas for better fulfilment of the data collection
process. Accurate implementation of the questions would help the researcher gather pertinent and
necessary information essential for achieving the core elements of research. Selecting survey as means
of gathering data for this study is based on the core research elements of the study. This method of data
collection would help the researcher gather relevant data from the consumers of the company and help
in analysing the impact of Adidas marketing strategy on the customer segment. Secondary data
collection has not been considered for this study, as it would not provide a comprehensive and updated
understanding of the marketing tactics that the brand applies.

3.7 Sample size and Sampling technique

Sampling technique can be defined as a pathway of providing equal rights to all the desired candidates
or samples for being selected in the research process. Since the investigation process includes
quantitative methodology for collecting required data, therefore, quantitative sampling techniques
have been applied during the selection of participants for the survey. In case of survey, as influenced
from the viewpoint of Walliman (2017), non-probability sampling has been applied, as this ensures the
elimination of any kind of biasness and provides equal opportunities to all the deserving candidates.
Through this way, total 104 consumers of Adidas living in UK have been selected to analyse the Adidas
marketing strategy.

3.7.1 Justification for sampling technique and sample size (104 customers through non-probability)
The non-probability sampling technique allows researcher to include specific group of participants in
the study and helps in better analysis of the data collected through limited number of participants.
Survey invitation was sent to 150 customers associated with Adidas’ fan pages on social media sites, of
which, 104 customers responded back to the survey link. Thus, 104 respondents were selected for
participating in the survey.This method is also cost effective and time saving considering the surety of
responses from selected group of consumers. However, the core issue associated with this sampling
technique is the lack of understanding in identifying biased views and the lack of general options within
the participating group. The selection of probability sampling has not been considered, as it would
require selection of random consumers from the market, this would reduce the scope of gathering
accurate data and response from the participating members. The time and cost would increase in case
of simple random sampling technique.

3.8 Methods of Data Analysis

The quantitative data collection process requires analysing the information through different methods,
as the contexts of the collected data could not be similar in quantitative and qualitative approaches
(Aithal, 2017). Implementation of accurate data analysis techniques is essential for the completion of
the study. Accurate data analysis techniques help the researchers in gathering relevant knowledge
regarding the aim of the study and enhance the effectiveness of the outcomes generated through study
of Adidas marketing strategy. It is necessary for the researchers to implement primary data analysis
techniques for developing outcomes from data collected through primary methods. Similarly,
secondary data needs to be analysed through thematic analysis for better understanding and
interpretation of collected data. For example, researcher(s) has received statistical and graphical
information from the survey method.

The researcher would adopt implementation of regression analysis for data collected through SPSS. As
per the understanding portrayed by Darlington and Hayes (2016), regression analysis states the
relation between variables within the collected data. It also provides information about the ways known
and unknown variables are impacted through similar levels of change.

3.8.1 Justification of data analysis methods (thematic and SPSS)

Therefore, as per the collected information, frequency or statistical analysis has been followed during
the process of data interpretation. Since, this study utilises primary data collected through survey, the
integration of frequency analysis techniques have been implemented for fulfilling the objectives for the
study of Adidas marketing strategy. In order to analyse the quantitative data collected by survey, SPSS
software will be used. The use of SPSS software for data analysis would be effective in gathering
relevant information from the raw data gathered through survey monkey. Utilising digital methods of
data analysis benefits the researcher in developing accurate information from the survey results.
Analysis of information through regression would allow the researcher to develop findings of the study
as per requirements (Brook and Arnold, 2018). Numbers and values are effectively studied through
regression analysis and provides researcher with the opportunity to develop the findings as necessary
for achieving objectives.

3.9 Ethical consideration

It is essential for researchers to comply with the ethical standards of data collection and analysis while
conducting a research that requires opinions and notions from other elements. This would enhance the
veracity and authenticity of the outcomes proposed through the study. As opined by Cortiet al. (2019),
the application of effective ethical standards and guidelines in a study enables the researchers to gather
relevant data and ensure authenticity of the study. This study would consider the aspects of Data
Protection Act of 1998 while utilising and implementing the data gathered from the survey.
Participants within the survey would not be coerced into giving their opinion regarding the Adidas
marketing strategy. The researcher would also utilise the data for academic purposes only and not store
the same for future purposes. Relevant courtesy would be presented to other authors and studies that
helped the researcher in forming justifications and completion of the study. The survey process would
be done online, and participating elements would have the opportunity to leave the process at any time,
they would also have the scope of not answering any questions as per their liking. Opinions gathered
from the data collection techniques would not be manipulated by the researchers and would be
simplified as per the research objectives. Every participant would be acknowledged, and researchers’
opinion would not be imposed on them while data collection process. Following these aspects of ethical
standards, the research on impact of Adidas marketing strategy on UK consumers would be developed
effectively.

3.10 Research Timeline

Figure 2: Gantt chart
(Source: Created by the learner)

The Gantt chart suggests the type of planning and execution that would be undertaken for the research.
Systematic process of identifying the research topic, literature review, methodology and other essential
elements would be vital for the completion of the study within the limited period. Chronological and
disciplined timetable for conducting the study is essential for fulfilling the research objectives
associated with this study.

3.11 Research Limitation

The study on Adidas marketing strategy experiences several limitations while fulfilling the objectives
due to the selected methodology for its completion. These limitations would affect the outcomes
developed through data analysis moderately. Using “primary data collection and analysis” methods for
the completion of the study is effective but selecting the non-probability sampling technique for
selection of participants would present the chances of biasness in data collection greatly. This could
affect the outcomes generated through analysis of biased data. The choice of implementing positivism
philosophy has been beneficial for the study but opting for pragmatism philosophy would have been
effective in this case. Utilising both the forms of data is beneficial for developing a comprehensive
aspect of the study of Adidas marketing strategy as per the research objectives and aim. The time and
cost restraints have also affected quality of the study as it reduced the efficiency of data collection and
analysis process necessary for fulfilling the objectives of the study. Selecting many sample size for data
collection using sampling technique presented higher risk of gathering biased data and affecting the
outcomes of the study.

3.12 Summary
It is evident from the chapter that the research will include positivism philosophy in fulfilling the
research objectives through analysis and accumulation of information. The techniques of “primary data
collection” and synthesis would be executed within this element. Using exploratory research design and
deductive approach to data collection and analysis, the scholar could identify different bearings of
Adidas marketing strategy on the consumers’ opinion in the UK market. Using non-probability
sampling technique on 104 UK consumers of Adidas for quantitative data collection process would be
effective for the study. The researcher would also comply with the ethical standards and establish
authentic results through the completion of the study of Adidas marketing strategy.

Evaluating Adidas Internal And External Analysis

Adidas AG, largest sportswear manufacturer in Europe and second-largest in the world a multinational
corporation founded in 1949 in Germany. Adidas deals with a range of clothing products, varying from
men's and women's jackets, t-shirts, hoodies, football and many other accessories. Adidas started
manufacturing cricket footwear in the 1970s and until now it has entered into so many cricket
sponsorships that have showcased its brand value across the world (KAL, 2019). Not only cricket or
football but also Adidas has rolled out its products for different sports such as basketball, baseball, golf,
gymnastics, tennis and kabaddi. At the same time, it has started designing watches, sunglass, bags,
socks and also deodorants and perfume. Adidas is constantly uplifting their sponsorship tag by
sponsoring different leagues, football clubs and national teams along with its players worldwide. In
2019 Adidas has mainly focused on designing distinct types of running shoes and lifestyle shoes. For
this purpose, Adidas has developed a strong runners' network within the different cities of Europe.
Excluding the sponsorship, Adidas has launched so many campaigns time to time to redefine its brand
image like in 2004 'Impossible is nothing' is one of the company's most celebrated campaigns. In 2011
another campaign namely 'Adidas is all in' focused in fashion, street music and pop culture.

3. Evaluation of Trends
Adidas has designed its products as per market trends and customer demand and its focused product
are running shoes of the different model with great features. Under this segment, Adidas has unveiled a
new strategic business plan i.e. 'Creating the new until 2020'. Along with that, it has developed a
culture of 3Cs i.e. Creativity, Collaboration and Confidence and this plan have three choices i.e. speed,
cities and open source. In the speed objective, Adidas has evolved the entire business model end-to-
end, from planning to product design, sourcing, supply chain and sales (Yang, 2019). They have also
expanded 'fast creation' and 'fast replenishment' strategy and it has increased its sales by around 45%
in 2019. In cities segment, Adidas has figured out important cities across the world and created an end-
to-end in these cities which links the customer to relevant products with its holistic retail experiences.
Activation was the first step to launch one by one impressive shoe on any special event. Products and
experiences are the rest steps to launch a global campaign and providing customer premium retail
experiences across the globe. Open source is the last objective where Adidas has welcomed innovative
design from the consumer by encouraging them to co-create the future of sports with them. Under this
campaign, this company has manufactured extensive running shoes with exceptional features. Adidas
Alphaboost and Adizero Boston 8 are the most amazing models along with that Supernova Glide Boost
8, Rockadia Trail, Terrex Skychaser GTX, Ultraboost 19, Cloudfoam Ultimate, Terrex Swift R GTX has
transformed the running shoe segment across the world (Burnap, 2019). It has incorporated world-
class features such as dual-density which boosts the cushioning with stability pods, lightweight, well-
shaped, foam platform which is liable to take smooth and well-judged steps, unique outsole unit that
helps to grip the surface. In this planned way, Adidas has evaluated its products trends according to the
consumer and market acceptability.
4. Environment Analysis- Adidas internal and external analysis
4.1 External Analysis
To assess Adidas internal and external analysis, a PESTLE analysis can be highly efficient and
applicable.

4.1.1 PESTLE Analysis

The PESTLE analysis deals with the evaluation of external conditions of an organization and their
effects on the brand. The PESTLE analysis focuses on Political, Economic, Social, Technological, Legal
and Environmental factors that can affect organizational operations (Perera, 2017). The PESTLE
analysis for Adidas internal and external analysis has been presented as follows:

Political
As per the research conducted on Adidas internal and external analysis, UK faces major political unrest
due to the issues with Brexit which has led to the loss of Free Trade relations with the countries
involved in the European Union (Lawless and Morgenroth, 2019). Additionally, the recent outbreak of
COVID 19 has led to major political unrest worldwide and has led to unstable political conditions.
These issues have led to negative effects on the brand and can lead to further problems over the next
few years.

Economic
The UK has experienced a significant decrease in economic growth over the years which has led to
negative effects on a large number of organizations. It was found that the GDP growth rate in 2016 was
1.91% which decreased to 1.89% by 2017 and 1.38% in 2018 (data.worldbank.org, 2020). Additionally,
as per Fernandes (2020), the recent COVID 19 outbreak has led to an economic lockdown and thus
economic values are expected to decrease further. This can lead to major negative effects on Adidas and
can lead to problems with proper operations.

Social
Social factors deal with the population and demographic conditions of a country. Based on a dataset
report presented by the ONS, it was found that most of the male population in 2018 belonged to the age
groups 25-29 and 50-54 years (ons.gov.uk, 2020). Similarly, most of the female population in 2018
belonged to the age groups 45-49 and 50-54 years. The population values for both males and females
were significantly lower from the age group of 60 years and higher which indicates high opportunities
for Adidas to attract the younger population and employed individuals. The COVID 19 outbreak has
also mostly contributed to the death of the older population and thus Adidas may not face major
problems with sales.

Technological
The UK is highly efficient in the use of modern technologies which contributes to significant positive
effects on organizations. Additionally, as per Wignaraja (2016) in regards to the Adidas internal and
external analysis, the recent trade relations with China have contributed to increased opportunities for
the UK has led to positive effects on availability. This has been highly efficient for the operations of
Adidas as well as many other countries within the UK. However, the COVID 19 outbreak from Wuhan,
China has led to a lack of clarity regarding future trade relations with China (thediplomat.com, 2020).
This uncertainty can greatly affect Adidas and swift action for the development of relations with other
technology providing countries is necessary.

Legal
The UK has several laws relating to business operations which include compliance with the Fraud Act
of 2006 to prevent fraudulent behaviours by the organization in terms of finances and the Equality Act
of 2010 which ensures equal treatment of employees (Monaghan and Monaghan, 2018). Other laws
and legal guidelines include Company Act of 2006 dealing with organizational values and the Health
and Safety at Work Act 1974. Adidas is highly compliant with these legal values and guidelines and thus
has been highly efficient in managing their continued business operations.

Environmental
The environmental conditions of the UK are highly suitable for business operations. The weather
conditions of the UK cannot be stated as either too cold or hot and its thus contributes to efficient
performances. Extremely hot or cold weathers can lead to lethargy or lack of motivations for
employees. Additionally, the UK experiences a mediocre level of pollution which does not affect
people's performances in a major way as of yet (Howarth et al. 2018). Adidas ensures the provision of
environment-friendly products and their development processes do not contribute to any negative
effects on the environment. Therefore, it can be stated that Adidas can gain continued profits and
operations due to the environmental conditions in the UK.

4.2 Internal Analysis

In the present study of Adidas internal and external analysis, the analysis of internal processes leading
to significant competitive advantages of the brand can be evaluated with the use of the SWOT matrix
and the Porter’s Five Forces model.

4.2.1 SWOT Matrix

SWOT is used to assess the strengths, weaknesses, opportunities and threats of an organization.
However, as stated by Gürel and Tat (2017), this process is used for assessment and does not involve
the development of strategic actions. The SWOT analysis for Adidas internal and external analysis has
been presented as follows:

Strengths
· Adidas has implemented the corporate strategy
stated as 'Creating the new' which focuses on
providing high-quality products as per customer
feedbacks (report.adidas-group.com, 2020).
Weaknesses
· Adidas lacks the availability of a wide range of
products at different price ranges. The products
developed by Adidas have high prices and thus
the products are not affordable for a large
number of people.

· Adidas focuses on customer engagement and · Adidas has been involved in minimal
has high brand visibility worldwide. endorsements which have led to lower brand
image and visibility than that of Nike.

Opportunities
· The brand image of Adidas can help to ensure
better market penetration into various other
countries worldwide, which can lead to better
profits.
Threats
· Adidas is endorsed by footballer Lionel Messi
whereas its rival brand Nike is endorsed by
Cristiano Ronaldo. This has led to major divisions
in the fans of the products developed by Adidas.

· Adidas can gain high profits as the sportswear · Adidas faces competitions from companies such
industry is a major growth industry and only a as Reebok, Nike and Puma which leads to lower
few organizations can provide similar products. potential profits of the Adidas brand.
4.2.2 Porter’s Five Forces
Porter's Five Forces model deals with evaluating the competitive advantages of an organization. The
evaluation of Adidas internal and external analysis operations based on Porter's Five Forces model has
been presented as follows:

The threat of New Entry: This factor deals with the opportunity for new organizations to enter the
market (Safari et al. 2016). The sportswear development business is a growing industry and thus
contributes to major opportunities for various brands to gain profits. This has led to the rise of new
organizations such as Under Armour and more which affects Adidas negatively.

The Threat of Substitution: This factor focuses on opportunities for people to buy products from
substitute brands. The high prices of Adidas brand contribute to low opportunities for buyers to
continue buying products from the brand. Therefore, substitution is inevitable and people will be more
inclined to buy high-quality products at low prices from brands such as Reebok and Puma. This can
affect the sales and profits of Adidas adversely.

Bargaining power of Buyers: This factor presented in the present study of Adidas internal and external
analysis deals with the power of buyers to bargain for the products and buy them at low prices (Safari et
al. 2016). Adidas follows a no bargain rule but the high prices contribute to increased bargaining
powers of buyers. The buyers can buy products from other organization selling similar products at
lower prices, thus affecting the profits of Adidas.
Bargaining Power of Suppliers: Due to the high brand image of Adidas, the organization has several
suppliers. Therefore, it can be stated that the bargaining power of suppliers is low and Adidas has
different options available in case of negative relations with a few suppliers. This contributes to positive
effects on the operations for Adidas.

Industry Rivalry: Adidas faces competition from a large number of rival brands such as Nike, Reebok,
Puma, Under Armour and more. Reebok and Puma are involved in the provision of standard quality
products at low prices whereas Nike and Under Armour provide high-quality products at prices similar
to that of Adidas. Therefore, Adidas faces competition both in terms of quality as well as the price
which affects the competitive advantages of the brand negatively.

5. Industry Analysis using Tows Matrix

The Tows Analysis for evaluating Adidas internal and external analysis is used to developed strategic
actions based on the strengths, weaknesses, opportunities and threats evaluated using the SWOT
analysis (?erný et al. 2018). This method can be stated as an improvement over the SWOT matrix. This
section presents a detailed evaluation of the conditions of Adidas based on the use of the Tows Matrix.

Strengths (SO) Weaknesses (WO)

The products sold by Adidas are

Adidas has a high brand image
of high quality but are not
which contributes to increased
affordable for a large number of
opportunities for market
people. This provides a
expansion. Expanding to
significant opportunity for
Opportunities various other countries
Adidas to focus on providing
worldwide can help to gain
standard quality products at
increased sales and profits for
lower costs to gain high market
the brand (da Motta and
attraction and increase
Hamilton, 2019).
competitive advantages.

Strengths (ST) Weaknesses (WT)

As discussed in the study of

Adidas internal and external
analysis, the company faces
major problems with unstable
Adidas faces major competition economic conditions in various
from various other brands such countries due to the lack of
as Nike, Puma and Reebok. product affordability as well as
Puma and Reebok are involved political backlashes in various
in the provision of high-quality locations. The brand also faces
products at low prices whereas competition from local brands
Threats Nike is a major competing force in various locations which leads
in terms of quality of products to lower potential profits. These
(Matovi? et al. 2019). The brand issues can be minimized by
image of Adidas can be used to introducing a new set of product
introduce a variety of products models that contribute to lower
ranging from low cost-low costs and lower sale prices. High
quality to high cost-high quality. sale of products with low
individual profits of the brand
can lead to better affordability
of people and can also lead to
high profits over a large scale.
6. Evaluating Strategic Actions
As a market leader in the sportswear segment, Adidas needs to revaluate the strategic policies which
are affecting their profitability. These strategic actions outlined in the study of Adidas internal and
external analysis are acting as an opportunity to the other major brand like Nike, Puma and Reebok to
showcase their products. Adidas products are mainly focused on higher class people due to its high-
quality material which is not economical to all segments of people. For this case, a range of standard
quality product with affordable price can be launched. Again Adidas faces major setback with different
countries due to this affordability purpose and also for political disturbance (Bjerkem, 2019). Even in
some countries, it faces tough competition with the local brands also. For this purpose, strategic actions
can be changed in line with country wise and they can launch products as per the country-specific. Such
as in Asian country they can launch sports shoes and traditional shoes also along with their favourite
merchandise. In European countries plan of action can be different to implement this strategy thus it
will boost the profitability in overall sales.

7. Recommendations based on the Adidas internal and external analysis

Based on the reflection of the above mentioned key resources, the following recommended actions can
be applied to enhance its performance:

 Adidas has a high brand image so it has also renovated that image into an innovative way such
as customized products for the consumer can be a game-changer.
 As Adidas is facing high competition from its contemporary brands so using its brand
reputation they can launch a range of products varying low-cost quality to high-cost quality as
per the market demand.

8. Conclusions
From this study on Adidas internal and external analysis, it is evident that Adidas has been the
company which has great dominance in the sportswear manufacturing market now and it will be there
in the future. Adidas has been focusing much more on innovation through the application of various
campaign and design which are required for driving innovation and creativity in the industry so that
the quality products and premium retail experiences are to be delivered to the consumer. It is
concluded from the Adidas internal and external analysis that the company has the string and powerful
branding are they are much more focusing on the innovative design and quality which is high demand
in the global market.

What is Adidas business model

Adidas business model is highly focused on creating innovative products designed to meet
consumer needs. Rather than investing in product endorsements, the company attempts to
demonstrate its value by creating a high performance product line based on the specific needs of
athletes and consumers.