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Marketing Management and Strategy Task

Marketing Audit for Adidas Group’s Company

Executive Summary

Companies use marketing to interact with their customers and potential buyers in order to persuade them to acquire their merchandise. This essay examines Adidas Group’s marketing approach, focusing on how it has impacted the firm’s industry stance. Since its founding, the corporation has preserved a market governance role, which can be credited to the corporation’s intensive and creative marketing techniques. While the firm’s greatest documented income was $29 million, earnings have been declining due to a variety of external variables. The Adidas Orthopedic Football boots are described as spiced tea in this article. The purpose of introducing this commodity is to make the corporation more appealing to the football sector.


Marketing audits are one of the instruments that companies employ to figure out what their branding abilities are and whether they’re being used effectively. A marketing audit is critical for international corporations like the Adidas Group in establishing what role the firm currently maintains and which aspects it should investigate if it strives to increase its worldwide placement. This article aims to execute an Adidas Group marketing audit and create an item suggestion centered on market requirements. Adi Dassler established the Adidas Group, which is a sportswear company based in Germany. This corporation was established on the enthusiasm for sports of its founder’s father.

The firm’s founding concepts were to create the finest sneakers to meet the demands of sporting activities, to inhibit damage, and to create high-quality, long-lasting commodities. The firm is known for being a figurehead in the business in aspects of creativity and styling, which is one of the major rationales for its rapid rise to second position in aspects of worldwide purchases. Under the Adidas umbrella, the corporation has launched a number of varying products, each of which offers a distinct commodity tailored to the label (Winterich et al, 2019). The corporation ‘s main goal is to become a market figurehead in the sports paraphernalia sector, which it intends to achieve by promoting the sporting culture and carrying out its operations with enthusiasm.

Customer and Prospect Research


Segmentation essentially allows a corporation to take advantage of the industry in order to achieve a competitive edge. Adidas uses multifaceted segmentation as a tactical step to guarantee that the corporation has a broad market presence (Carr, 2019). Adidas divides its customer base into psychographic, behavioral, population, and locational sections.


Targeting is an efficient technique for reaching out to teenagers, kids, and grownups who are interested in sporting events, coaching, and wellness. Adidas primarily caters to consumers between the ages of 12 and 40, but a sisable portion of their client base is between the ages of 15 and 31. Customers are also divided into two groups: middle-class and upper-middle-class. They discovered that mass producing and mass marketing were no longer viable options since they couldn’t efficiently commercialise to each customer segment (Laukkanen, 2021). If the large percentage of your customer platform is on social networks and barely looks up from their handsets, for instance, widespread advertising via billboard will not strive. Once the objectives and motivations of each customer for participating in sporting events and exercise are acknowledged and recognised, devotion can be built. The Western European sone also accounts for a sisable portion of Adidas customers (Osgen, 2019). This is their biggest industry and the source of the majority of their purchases.


Adidas has approximately 51 own e-commerce webpages, over 2,800 own general merchandise outlets, over 12,000 mono-branded chain retailers, over 115,000 distributor doors. They have a massive client infrastructure that is nearly impossible to penetrate. Adidas is able to provide a fantastic consumer encounter thanks to this network. Adidas places a premium on excellent consumer service, which has resulted in long-term brand recognition (Wildfeuer, 2018). It pushes superior client experience with the unveiling of the Connect-Engage-Inspire delivery framework. This framework has resulted in increased customer contentment and income. An improved purchasing experience is also enhanced by a more individualised encounter with consumers. Consumers, whether in person or digitally, want to believe as if they aren’t just another buyer. Being Omni-present also aids in properly addressing the customer.

Marketing Overview of Internal Factors

SWOT Analysis


Adidas’ greatest strength as a global corporation is its well-known brand title. The firm’s culture and reputation have come a long way, and its historical background ingratiates it to customers. The Adidas label is so solid that numerous knockoffs have emerged, posing a risk to the brand’s stance. Any initiatives at imitating the firm’s sewing and symbol are thwarted by the industry’s elaborate sewing and emblem initiatives (Patras, 2021). The corporation’s second resilience is its label diversity. The organisation uses the various brands in its investment to entice customer satisfaction. The corporation uses both a solid brand image and a diverse client base as advertising methods all of the time, and both have demonstrated to be efficient since the trademark is linked to value.


The corporation’s merchandise is expensive due to specialised and creative technological advancements. The situation is made harsher by rising manufacturing and transportation expenses. As a consequence, the label is only accessible to consumers from the middle and upper classes. Customers from developing countries are mostly restricted due to financial constraints. The firm’s second flaw is its excessive reliance on the Asian economy, or low labor expenses and assets.


As a sportswear manufacturer, the industry’s most promising pathway is current societal growing infatuation with wellness. Its deluxe fitness clothing edge tends to make it an optimal intended corporation for athletes, public figures, and fitness experts seeking quality fitness gear (Wright, 2019). The growing industry also presents a chance for the organisation to broaden its brand segment, which will not only set it apart from its rivals but will also enhance its brand investments.


Despite being a worldwide organisation, Adidas competes fiercely in the top quality sportswear market with franchises like Puma and Nike. Product knockoffs, regional competitors, and other business entrants are all part of the rivalry. This competition has the capability to reduce the corporation’s sales share and income, negatively impacting its monetary results. Its potential threat stems from providers’ strong bargaining force (Labour, 2020). As more firms relocate their manufacturing lines to Asia, the market for outsourcing rises, giving distributors more bargaining power. This could lead to a rise in manufacturing expenses, resulting in a reduced earnings margin.

Market Overview of External Factors

PESTLE Analysis

Political Factors

Adidas, as a large global functioning in the worldwide business community, is vulnerable to political and governmental unrest in the regions where it does marketing. Potential setbacks from public strife, terrorist attacks, modifications in trade regulation, and expropriation are among these dangers. Furthermore, given that the majority of Adidas’ corporate is in the external segment, any increase in import constraints could stymie the corporation’s operations in another nation (Sicoli et al, 2019). The firm’s implementation expenses will rise as a consequence of an adjustment in minimum wage legislation, making it impossible to provide competitive rates.

Economic Factors

Interest percentages and economic expansion have a variety of effects on several nations, some of which are more negative than others. When customer preferences soar to the point where they are unsupportable, popularity for merchandise progressively drops as buyers are more involved with investment than expenses (Langan et al, 2019). When interest rates fall, investing becomes less appealing, and customers are enticed to splurge, implying that funds are available for circulation. When rates of interest are limited, lavish goods such as sporting apparel perform poorly, which has an impact on Adidas’ yields.

Social Factors

Adidas, as a multinational corporation, caters to people from all walks of life and socioeconomic cultures. Spirituality, ethnic background, heritage, and sexual identity all have an impact on customers’ attitudes and behavioral patterns toward brands, as well as their purchasing habits. Transitions in societal viewpoints could benefit or hurt Adidas. Innovative techniques that are in connection with socioeconomic adjustments are confined to adjust in order for Adidas to preserve a competitive stance.

Technological Factors

Manufacturing, advertisement, purchases, and achievement are all affected by technological advances. Adidas can pace up manufacturing, save fuel, and lower expenses by utilising technological innovations (Fahy et al, 2019). Furthermore, the social media has transformed the globe into a worldwide village, enabling Adidas merchandise to be promoted globally. Adidas has managed to keep up with the times by enabling customers to make transactions digitally and discuss brands with others so that they can learn about them.

Legal Factors

As a manufacturer of commodities, the corporation faces a high threat of legal action based on assertions of infraction of intellectual property, trademarks, and other legal protections. This implies that the firm must devote not only in the finest lawyers, but also in description and styling investigation in order to avert third-party dispute (Humbert, 2019). Non – compliance will almost certainly charge the organisation millions of dollars in fines from various legislative bodies around the globe.

Environmental Factors

Every firm ‘s activities prioritise ecological responsibility, and Adidas is no exception. Despite the financial costs, the corporation guarantees that constrained compounds are managed and that the ecological effect of their manufacturing and dispersion mechanisms is monitored (Cheng, 2019). The corporation is assertive in constructing sociologically and ecologically feasible goods, and its ‘Better Place’ initiative reflects the firm’s commitment to environmental stewardship.

Competitor analysis

The Adidas Group is a multi-brand company. This grants them a leg up on their rivals. When Nike and Puma were founded, they immediately set their sights on Adidas and their customer base. Nike only owns two affiliates in their product line, Converse and Hurley, in comparison to the Adidas Group. Adidas is recognised for being adaptable and durable. They are primarily the football product line; they have a significant point of distinction, and the Adidas label is becoming more attractive. Nike and Adidas share a relatively similar ambition, which explains their commitment to unique item advancement and creativity (Kosak, 2018). Nike, like Adidas, outsources all of its manufacturing and has been involved in controversies involving labor laws, exploitation of workers, and reduced wages in China.

Puma is an immediate rival of Adidas, but it is not as dangerous as Nike. They are eligible to capture a greater share of the track and field business, but that is primarily where their business commences and terminates. Nike and Adidas encompass all sporting events across the world, particularly the most popular ones, in a seamless manner (Birch, 2019). Both of these companies have aided in the shaping of adjusting lifestyles all over the globe.


Adidas has flourished and preserved business dominance in the face of fierce rivalry in a remarkably fragile and competitive field. Adidas’ accomplishment can be attributed to its capacity to use marketing to support the commodity while also alluring its company image to customers all over the globe. The emergence of Adidas soccer boots as a health-oriented alteration of Adidas’ football boots is proposed in this article. Because of the numerous health advantages associated with using the commodity, Adidas should reach the health-conscious and those who use substitute treatments. Incorporating this commodity to the sector will not be a huge challenge, given that Adidas already has a strong company image to which the commodity can appeal.


Birch, R., 2019. Adidas: A Strategic Audit.

Carr, D., 2019. The Effectiveness of Collaboration Within Supply Chain Management: A Case Study of Adidas Group.

Cheng, C., 2019. The Appraisal of Financial Performance of Adidas Group (Doctoral dissertation, Masarykova universita, Ekonomicko-správní fakulta).

Fahy, J. and Jobber, D., 2019. EBOOK: Foundations of Marketing, 6e. McGraw Hill.

Humbert, F., 2019. Sustainability reporting: A critical assessment of the EU CSR Directive and its German implementation from a human rights perspective. Schmalenbach Business Review71(2), pp.279-285.

Kosak, D., 2018. The development of a sustainability strategy with a focus on environmental issues in the context of MNCs: the business case of Adidas (Doctoral dissertation).

Langan, R., Cowley, S. and Nguyen, C., 2019. The state of digital marketing in academia: An examination of marketing curriculum’s response to digital disruption. Journal of Marketing Education41(1), pp.32-46.

Labour, F., 2020. Adidas®. The Corporate Social Responsibility Reader, p.156.

Laukkanen, J., 2021. Sustainability marketing in sporting goods industry.

Osgen, P., 2019. Self-Laundering for Marketing: Maintaining Sustainability. In Handbook of Research on Consumption, Media, and Popular Culture in the Global Age (pp. 355-370). IGI Global.

Patras, V., 2021. Sustainability in the shoe market: Adidas on a move to sustainability.

Sicoli, G., Bronsetti, G. and Baldini, M., 2019. The importance of sustainability in the fashion sector: Adidas case study. International Business Research12(6), pp.41-51.

Wildfeuer, J., 2018. Branding and customer satisfaction: A research about the Adidas Group.

Winterich, K.P., Nenkov, G.Y. and Gonsales, G.E., 2019. Knowing what it makes: How product transformation salience increases recycling. Journal of Marketing83(4), pp.21-37.

Wright, M., 2019. Strategic audit of Adidas.


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