Adidas Brand Audit essat

Adidas is a well-known sports company that manufactures shoes, sportswear and accessories. Adolf Dassler in Germany established the company in 1949. Adidas was started in a washroom and over the years triumphed the world. Recently Adidas has been going through a lot of turbulence. In the year 2014 the company stocks went down staggeringly. Adidas recently closed down close to 200 stores in Russia due to deteriorating economy. Nike has been giving Adidas a stiff competition. Adidas definitely need better planning and better leadership to give its competitors a healthy competition.

The purpose of this study is to explore three companies by focusing on how the brands have been performing as well as what the customers and other stakeholders are saying about the different brands. This study will also summarize the strategic issues that the companies and those they are likely to experience in future.

In the following essay, I will write about Adidas Company and will describe the relationship among its various quality costs which are failure costs, internal failure costs, external failure costs, appraisal costs and prevention costs. In addition, I will analyze the efforts the company should focus on to further improve the quality of its products/services. Therefore, this essay is divided to 3 main points which I think the company should focus to improve its quality. The first point is the prevention cost which’s the most important quality cost that

In the running era, the two brothers were separated and Rudolf began his own company Puma while Adi took over Adidas. The original name Adidas came up with a logo, the three stripes under that today stand out in the market. The company Adidas gradually gained the stance in the market after the logo was introduced in the global market. Adidas products were used in different sports during the Olympics and revolved around renowned athletes. At this time, the business had up to 100 employees who were engaged in the production of sport shoes for 11 different sports. Despite of the separation, the company grew and became the leading sportswear manufacturing company

Ethics is defined as what is right and what is wrong. Every business should behave ethically. The moral principles that guide the way a business behaves are business Ethics. Ethics are moral guidelines to people or to an organisation which govern good behaviour. So behaving ethically is doing what is morally right. Doing an ethical business may always be not profitable but it will be more beneficial to company and the people involved in company as well as the people who are getting influenced by the company. If a company is acting ethically then it is trying to differentiate between right and wrong and then chose the right decision for everyone. It is very easy it identify any unethical

Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.

Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.

Furthermore, due to yearly sporting events such as UEFA Champions league, Super Bowl and the enormous interest in sport generally, the demand for sport products are high.

Adidas general approach is to be a sustainable company. Adidas Group is one of the global leaders within the sporting goods industry. Adidas offering a broad range of products around the core brands such as adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany. From the assesment, adidas Group’s sustainability strategy is rooted in the Group’s values which are performance, passion, integrity and diversity. Furthermore, the adidas Group is selected to join the Dow Jones Sustainability Indices (DJSI), which is positively welcomed by investors who integrate sustainability considerations into their portfolios.

Adidas was founded by Adi Dassler on August 18, 1949 in Herzogenaurach, Germany. Adidas has been in business longer than Nike, they have had their logo since the inception; thus, the three stripes on the side of their shoes. In Spring of 2015, they came out with their new strategic business plan called, “Creating the New”. The focus was on Cities, Speed, and Open Source. According to Herbert Hainer, the CEO at that time stated, “The company is working every day to inspire and enable people to harness the power of sport in their lives (Adidas Group, n.d.). Adidas current competitive strategy is not the same as Nike’s competitive strategy. In October 2016, Kasper Rorsted became Adidas’ current CEO. He believes health and fitness will continue to become a lifestyle not a fad. Furthermore, he wants to expound the three clear strategic choices: Speed, Cities, and Open Source.” They are more focused on the broad target market, a low-cost provider strategy. In March 2017, he updated the focus for Adidas to include “Corporate Culture, Digital, One Adidas, North America and Portfolio.” (Adidas Group, n.d.).

3. What is the Brand in the Hand concept? What does this mean to adidas and its branding efforts? It is one way to do the marketing communications. It means that company and product information can be easily delivered to people in their hands whenever and wherever possible. The media can be mobile devices, video games and the Internet. In such a way, brand awareness can be raised faster than traditional marketing communications. In the past, advertising and branding models were based primarily on 30-second commercials and magazine ads. Adidas traditionally advertised on TV and magazines as well as at sporting events and sponsor sports teams and players. But these events attract few new customers. On the other hand, increased advertisements intruding in the people’s lives made them hostile to ads and therefore more difficult for adidas to make effective advertising through the traditional way. Without moving

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.

Adidas is the second largest sportswear and apparels manufacturer (Dogiamis & Vijayashanker, 2009). By far, Adidas holds a market share of 22% (Dogiamis & Vijayashanker, 2009). Adidas had also registered the infamous ‘3 stripes’ as its trademark (Berntson, Jarnemo & Philipson, 2006). The founders of Adidas, Adolf and Rudolf Dassler had the vision of providing athletes with the best suited pair of shoes for their respective sports (Dogiamis & Vijayashanker, 2009). In efforts of achieving that, Adidas is had used the strategy of collaborating with important athletes to gain their insights on the products offered (Berntson, Jarnemo & Philipson, 2006). This contributes to the fact that Adidas had earned

2 1.2.1: History of Brand Name: ........................................................................................................ 2 1.2.2: Opening and International Expansion:.................................................................................. 2 1.3 Rational & Significance: ............................................................................................................... 3 1.4 Research Aims and Objectives: .................................................................................................... 4 1.5 Research Questions: ...................................................................................................................... 4 1.6 Structure Of The Study: ................................................................................................................ 5 CHAPTER TWO: LITERATURE REVIEW ......................................................................................... 6 2.1 Introduction: .................................................................................................................................. 6 2.2 Business and Strategy: .................................................................................................................. 6 2.2.1: Business: ............................................................................................................................... 6 2.2.2: Business Strategy:

Today, the adidas® product range extends from shoes, apparel and accessories for basketball, soccer, fitness and training to adventure, trail and golf . adidas®, like many companies during the 1960s, believed in large volume sales. Lot of effort was put into advertising the brand in the early days through sporting celebrities. One of the main reasons that the colour of the 3 stripes on the running shoes was changed from black or dark brown to white was to facilitate easy brand recognition and identification, which in turn would promote the overall sales. The ideology was that the ability of a brand to stand out in the market place will enhance its chance of standing out in the customers mind. adidas® produced shoes that could be used for different types of sports.