BRAND ANALYSIS (MKT539)

ADIDAS
PREPARED FOR : MADAM NOR SARA NADIA
BINTI MUHAMAD YUNUS

KHAIRIN AMZAR BIN KAMARUL AZAHAR

2021158219

Company Background

Adidas was founded by Adi Dassler on January 18, Adidas' mission statement is to be the worldwide leader
1949, in the tiny town of Herzogenaurach located in in the sporting goods market with brands that are
Bavaria, Germany. In 1924, Adidas was known as founded on a love of sports and a sporting lifestyle. To
Gebrüder Dassler Schuhfabrik, with Dassler's main increase its competitive position, the organisation is
objective being to offer sportsmen with the best devoted to continually strengthening their brands and
available sporting equipment. Dassler registered a goods. Their vision, on the other hand, is to be the design
sneaker in 1949, which contained the registration of leaders in the global sports industry, with a focus on
the soon-to-be-famous Adidas three stripes. The getting the most out of athletes with performance-
'three-stripes brand' was formed, and Adi began guaranteed goods. Adidas managed to produce revenues
utilising the three-stripes emblem as the company's of more than 19 billion euros in fiscal year 2020, and
trademark. It was Europe's and the world's largest employs more than 62,000 people worldwide. Adidas
sportswear company in the early twenty-first supports a number of high-profile sportsmen and sports
century. Adidas is headquartered in Herzogenaurach, teams throughout the world under the trademarks
Germany, and is active in the design of clothes, "Impossible is Nothing" and the three stripes logo.
accessories, apparel, and services.

Risk on alternative
merchandise and services.
There are likely to be plenty of other firms competing in the same
industry as Adidas, which will continue to sell clothes, sportswear,
footwear, and accessories. Customers will choose other
organisations that supply the same sort of items, posing a
significant challenge for Adidas. This influence might be similar to
that of football teams, which are utilised by various players to
promote various shoe companies. For instance, in 2011, one of the

Problem most prominent football players, Gonzalo Higuain, was dissatisfied

with Adidas' merchandise and refused to promote the brand. After

Analysis that, he embraced his name with Nike, Adidas' competitor. Such act
has caused a downfall on the financial side of the company which
may lead to other various problems and also challenges to Adidas.

Competition in brand rivals.

Adidas faces fierce competition from firms such as Puma, Nike,
Under Armour and other emerging competitors. These high-profile
corporations have identified that huge conveyor systems play a vital
role in acquiring demand in the apparel sector for items and brands.
The existence among these rival enterprises has also posed new
challenges to the Adidas brand. The result of this may affect the
marketability of the brand.

The regression of Adidas'

brand strength.
The challenge that Adidas is facing is a reduction in market strength,
which has contributed significantly to the company's financial
deficit. This is due to the fact that the brand no longer has the ability
to dominate the market as it once did. The corporation should seek
measures that restore its brand strength and, as a result, share of
the market. The corporation might achieve competitive business
advantages by utilising intensive marketing and product
differentiation, among other things.
Problem
High level of competition Statement
within the industry.
Another challenge that Adidas is facing is that different rivals on the
market are becoming more competitive. In the face of intense
competition, corporations prioritise cost reduction as a primary
strategy where it may have an influence on profit margins, resulting
in low profit margins. Adidas must seek ways to solve the market's
competitiveness problem in order to gain a competitive edge.

 Carry out a Offer a more innovative

thorough market product in the market.
research Other significant techniques for dominating the
market for Adidas include improving existing items.
This challenge must be handled by doing field Innovation will only serve to improve existing items
market research and evaluating the on the market. At Adidas, innovation will result in the
hierarchy of qualities in terms of introduction of new items or the enhancement of
performance expectations, as well as the current ones. Because the business's goods suit the
best associated message and positioning, wants of customers and attempt to be more
using a consistent input. Market research is successful than the other market participants,
to comprehend consumer priorities and innovation can lead to higher profitability in the
provide solutions to satisfy the consumer's market. New concepts will emerge as a result of
most urgent issues. As a result, the terrible innovation, giving Adidas a strategic advantage over
product disarray is avoided. competitors.

Recommendation of alternatives for the

regression of Adidas's brand strength

Identification & Evaluation

of Alternatives

Recommendation of alternatives for the

high level of competition within the industry

Get information on Identify a set of new

the needs & wants niche market
of customers Given the congestion of present Adidas
markets, which has nearly wiped them out, they
This challenge must be handled by doing field should seek out and enter new target markets
market research and evaluating the with the purpose of avoiding saturated
hierarchy of qualities in terms of markets. The organisation would be able to
performance expectations, as well as the enhance its market share and hence acquire
best associated message and positioning, competitive market advantages by introducing
using a consistent input. Market research is new business sectors. Trade will broaden its
to comprehend consumer priorities and consumer base and enhance the danger of
provide solutions to satisfy the consumer's gaining a substantial market share. As a result,
most urgent issues. As a result, the terrible Adidas may end up with little more than a
product disarray is avoided. popular brand that caters to a bigger audience.

Recommendation
After a thorough analysis of the conflicts that Adidas is facing, it is reasonable to conclude that the company has
a wide range of challenges that it must overcome in order to maintain a more stable and long-term growth and
survival. Market rivalry and the deterioration of the Adidas Brand are two significant challenges that Adidas is
now facing, both of which will affect the profitability of the company. Adidas' brand value and quality are
diminishing by the day, allowing the company to spend more money on brand development and advertising.
Based on the alternatives presented, it is preferable for Adidas to improve their current product offers or
perhaps create new ones. The design, materials, and production procedures of the product should all be
enhanced. Only innovation may contribute to market competitive advantages, allowing Adidas to remain
competitive. Aside from that, Adidas has to figure out what their new niche market is. They must find ways of
penetrating new target areas in order to break out of highly competitive markets. The organisation would be able
to enhance its market share and hence acquire competitive market advantages by introducing new business
sectors.

Conclusion
In a nutshell, the cost of each product plays a significant part in this industry since it
directly influences consumers. It's difficult to tell if several potential buyers are more
worried about footwear expenses than others in a dominant sector. Other aspects, such
as preferences, uniqueness, trend, and alternative items, significantly affect footwear
requirements in addition to price.
In conclusion, Adidas' largest difficulty is a highly competitive market, which affects not
just the business's financial expenses but also its market strength. Adidas must find a
suitable approach to address the aforementioned issues, since the market is becoming
fiercely competitive. If executed properly, the initiation of the alternatives will raise
their sales margin, resulting in a high profit and lowering costs.

REFERENCES :

1) LEWIS, R. (2022). ADIDAS | HISTORY, PRODUCTS, & FACTS. RETRIEVED 1 JANUARY 2022, FROM HTTPS://WWW.BRITANNICA.COM/TOPIC/ADIDAS-
AG
2) WALTERS, M. (2021, AUGUST 3). THE HISTORY OF ADIDAS: A BACKGROUND OF COLLABORATION AND INNOVATION. ADIDAS GAMEPLAN A.
HTTPS://WWW.GAMEPLAN-A.COM/2021/08/THE-HISTORY-OF-ADIDAS-A-BACKGROUND-OF-COLLABORATION-AND-INNOVATION/
3) ADIDAS MISSION STATEMENT 2022 | ADIDAS MISSION & VISION ANALYSIS. (2021, JANUARY 27). ADIDAS MISSION AND VISION STATEMENT
ANALYSIS. HTTPS://MISSION-STATEMENT.COM/ADIDAS/
4) ADIDAS ANNUAL REPORT 2020 - HOME. (2020). ADIDAS ANNUAL REPORT 2020. RETRIEVED 2021, FROM HTTPS://REPORT.ADIDAS-
GROUP.COM/2020/EN/
5) ORTIZ, F. (2016, APRIL 28). 10 PLAYERS THAT CHANGED FROM ONE BRAND TO ANOTHER. FUTBOL EMOTION.
HTTPS://WWW.FUTBOLEMOTION.COM/EN/BLOGS/FOOTBALL-GOSSIP/10-PLAYERS-THAT-CHANGED-FROM-ONE-BRAND-TO-ANOTHER