Btec Business
Evaluation of the businesses marketing techniques and the effectiveness of the businesses actlvltles. Introduction In this report I am writing about the effectiveness of the marketing technique used by the business of my choice which is Adidas AG. Also I will be using my research to make Judgements. Adidas AG Is a German sports clothing manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adldas golf company (Including Ashworth), and Rockport.
Adidas uses brand awareness to promote there company and Its products, Ilke football boots. They are also the kit provider, to the German national football team; Adidas also sponsors the Argentine, Japanese, Mexican, Scottish, Spanish and Colombian national football teams, among others. Adidas is very active at sponsoring top football clubs in Germany such as Bayern Munich, Schalke, Hamburg, Bayer Leverkusen, and VfL Wolfsburg and top football clubs worldwide such as R. S. C. Anderlecht, Rapid Vienna, Real Madrid C. F. , AC Milan, Dynamo Kyiv, Chelsea, Lyon,
AFC Ajax, Galatasaray, Benfica, Fenerbah#, Panathinaikos, Bolton Wanderers and many others. As they use brand awareness they will always be a well-known company because a lot of people watch football and football Is an International sport so when big football clubs like Real Madrid and Chelsea wear there kits with Adidas sponsoring the clubs, all the clubs fans will always want to check who Adidas is as a company, and Adidas will make money from the football clubs as they will receive a lot of customers who like football and sports.
Adidas diversified into the accessory market after doing well in the sports apparel arket, as they did this they produced, deodorants, perfumes, aftershaves, lotions, watches, eye-wear, and bags. Going into the accessory market meant that they could sell their products to a wider range of people, Including older people. Essential accessory products Ilke deodorants would appeal to everybody as everyone would want to smell nice, and every accessory product I named Is essential so Adidas would be making a lot of money if people bought their products.
I Analysls 0T A Strengths: In many events they are the biggest sponsor, they have a strong anagement team, there brand recognition and reputation is really big, they have diversity and variety in products offered on their websites, they have strong control over their own distribution channel, they don’t have any bad reputation like child labor or environmental pollution and in the Football industry, they have a stronghold, as they are famous. Weaknesses: they have high prices in some products, so this could turn people who don’t have money to spend to other sports companies.
There E-commerce is limited to USA as they are a European Company, this could be a big loss but, Reebok the ompany they also own is famous there so they could make a lot of money even if they want Adidas in USA. The direct sale to consumers is creating conflicts with its own resellers and online customer service not “helpful” or easy to find, this could put a lot of people annoyed with their company and this could cause people to go and look at other sports companies.
Opportunities: They have collaborated with other online retailers to offer Adidas products, and this could make them money and there products could be more known. They have collaborated with other online retailers to offer Adidas products; his could be a big advantage as they will want to make a lot of money. The possibility of outsourcing the web development and e-commerce to a third party developer is high. Threats: With Nike’s strong reputation in the footwear and apparel industry they could lose out on a lot of money.
The negative image created by their sponsored athletes (i. e. Kobe Bryant and his sexual assault case), could harm their image as a good company. All the marketing techniques I have named have been very effective for Adidas as they used their successful company name to get sponsors to promote their products nd wear their products, and this was where they used the technique called brand awareness. They also used their famous name to diversify into the accessories market; this had the opportunity to get them a lot of customers as they made essential products like deodorant.
The SWOT Analysis showed that they had different strengths like there stronghold on the Football Industry, but they have weaknesses like the limited services in the USA, and the USA is a big sporting country. They have a lot of opportunities to develop there company, but there is a lot f threats like the negative image of one of their most famous sponsors called Kobe Bryant having a sexual assault case against him.
Conclusion In tnls report I learnt tnat companles use sports cluDs ana players to promote tnelr company, but the players that they sponsor could make the company sponsoring look bad. But Adidas the company I wrote about is a big company that is struggling to get really famous in the USA, and they have stiff competition from Nike, which is an American company, but they are big in Europe and they are the biggest sports company in Europe.
