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Reference 

Google.co.uk (n.d.) adidas - Google Search. [online] Available at: https://www.google.co.uk/search?hl=en&tbm=isch&sa=1&q=adidas&oq=adidas&gs_l=img.3..0l10.23009.25109.6.26402.20.11.0.0.0.3.184.1224.4j7.11.0...0.0...1c.1.5.img.JwBI3TwNdh4&bav=on.2,or.r_cp.r_qf.&biw=1360&bih=696&imgrc=tz8hnBz_IcKqnM%3A%3BrAb9cLNRIuHBxM%3Bhttp%253A%252F%252Fdiaryoo.com%252Fimages%252F5502-vector-graphics-for-your-inspiration-adidas-vector-logo.jpg%3Bhttp%253A%252F%252Fdiaryoo.com%252Fshow%252Flogo-adidas-anim%3B1024%3B768&cad=h#imgrc=tz8hnBz_IcKqnM%3A%3BrAb9cLNRIuHBxM%3Bhttp%253A%252F%252Fdiaryoo.com%252Fimages%252F5502-vector-graphics-for-your-inspiration-adidas-vector-logo.jpg%3Bhttp%253A%252F%252Fdiaryoo.com%252Fshow%252Flogo-adidas-anim%3B1024%3B768 [Accessed: 10 Mar 2013].

Emma Hiskett

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Group Meeting Friday, 08 March 2013

Last week, we had another group meeting to gather up and review all the information we have collected from our research in the past few weeks. We have discussed about condensing our findings and chose which information to put forth in our infographic. We also talked about the format of our infographic and how we planned to make it, either by using an online infographic generator or making the infographic ourselves.

We decided to use colours that are relevant to adidas such as black, white and blue. We want to avoid making our poster too clustered with information or diagrams and we want to make it as concise, simple and understandable as possible. We talked about keeping the format simple, avoiding too much fancy writing in order to present our work neatly and formally.

By the end of the meeting, we made sure that everybody knew which section of the infographic each member was supposed to do. We have arranged another meeting on Sunday to complete our project and add some final touches.

Adistats,
Frances Agoncillo

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Statistics

Consumer purchases of Sporting Goods in the US

The adidas Group net sales worldwide from 2000-2011

The adidas Group's footwear production worldwide from 2008-2011

Athletic Footwear Sales of Nike and Adidas in 2011

Global market share of athletic apparel vendors of apparel revenue in 2011

References:

• Statista (2013) Consumer purchases of Sporting Goods in the US from 2002-2012 (in billion US Dollars). Available from: http://www.statista.com/statistics/200773/sporting-goods-consumer-purchases-in-the-us-since-2004/ [Accessed: 10 March 2013]
• Statista (2013) The adidas Group net sales worldwide from 2000-2011 (in million euros). Available from:http://www.statista.com/statistics/158763/net-sales-of-the-adidas-group-worldwide-since-2000/ [Accessed: 10 March 2013]
• Statista (2013) The adidas Group's footwear production worldwide from 2008-2011. Available from: http://www.statista.com/statistics/227015/the-adidas-groups-footwear-production-worldwide/ [Accessed: 10 March 2013]
• Statista (2013) Athletic Footwear Sales of Nike and Adidas in 2011. Available from: http://www.statista.com/statistics/248908/global-athletic-footwear-sales-of-nike-and-adidas/ [Accessed: 10 March 2013]
• Statista (2013) Global market share of athletic apparel vendors of apparel revenue in 2011 Available from: http://www.statista.com/statistics/246719/athletic-apparel-companies-global-market-share-athletic-apparel-revenue/ [Accessed: 10 March 2013]

Adistats,
Frances Agoncillo

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Sports Clothing and Footwear Industry in the UK, China and the US Overview

UK

• Sports clothing and footwear has been an established part of the general apparel market for 20 years. 

• The UK market is worth £4.25bn in 2006 at retail selling prices (rsp). 

• Between 2002 and 2006, market growth increased by 4.9%. 

• Sports clothing was worth £3bn at rsp in 2006 and footwear (predominantly trainers) was worth £1.25bn at rsp in 2006. 

• In 2006, Nike Inc. is the clear UK and world leader, followed by adidas Group (which also owns Reebok). 

• The globalised marketing of Nike, adidas, Reebok and other sportswear brands fits in with gloablised production. 

• Domestic manufacture of sportswear has withered away in Europe, replaced by imports from the Far East (particularly China and Vietnam).

China

• Official industry figures showed Chinese firms in the sportswear sector saw inventory levels rise 36% last year, to 58%. 

• According to ResearchinChina, the insights group, Nike took 10.5% of sportswear sales in China last year, ahead of adidas on 7.9%, Li Ning on 7.2%, Anta on 7.1% and Xtep on 4.4%.

• Nike and adidas are expected to take 28% of sports apparel and shoe sales in 2013, Barclays has estimated. 

• “Foreign brands are more popular with China’s growing middle classes who can afford pricier and trendier products.” – Eugene Mak 

US

• Sporting goods to the value of more than $80bn USD are purchased by consumers in the U.S. 

• Almost one-third of these products is sold in sporting goods stores totalling $38bn USD in sales. 

• Walmart makes $8.6bn USD in revenue from sporting goods sales 

• Another 14% sporting goods retail sales is handled online/over the internet. 

• The two major sporting goods manufacturers are Nike and Adidas with $24.13bn and $17.27bn USD in revenue. 

• Other sporting goods manufacturers with at least 1.5bn USD in revenue include VF Corp., Puma, Asics, Jarden, New Balance, Quicksilver, Mizuno, Amer Sports, Columbia Sportswear and Billabong.

References:

• ReportLinker (2007) UK Sports Clothing and Footwear. Available from: http://www.docstoc.com/docs/67638378/UK-Sports-Clothing-_-Footwear---Download-this-market-research- [Accessed: 09 March 2013] 
• World Advertising Research Centre (2012) Nike, adidas well set in China. Available from: http://www.warc.com/Content/News/N30107_Nike2c_adidas_well_set_in_China.content?CID=N30107&ID=994d430c-6b7a-4bad-b604-307d0055735e&q=sportswear&qr= [Accessed: 09 March 2013] 
• Statista (2012) Statistics and Facts on the Sporting Goods Industry. Available from: http://www.statista.com/topics/961/sporting-goods/ [Accessed: 09 March 2013] 

Adistats,

Frances Agoncillo

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Ben and Jerry's breakout session

During this week’s breakout session, we looked into the success of the well-established ice cream brand, Ben and Jerry’s. From this, we discussed who the company’s main competitors were within the premium ice-cream market. We concluded that Magnum and Haargan Darz were the Ben and Jerry’s main competition. We argued that their ‘product anatomy’ was composed by the company’s ability to differentiate themselves from other brands by having a wide range of fun unusual flavours that appeal to a wide range of consumers. Ben and Jerry’s fun flavours also coincide with today’s current affairs such as global warming and other ethical issues, as shown in the video.

We also discussed how the brand positioning strategies of Ben and Jerry’s vary from their competitors and how this is manifested in the product anatomy. We concluded that Ben and Jerry’s wanted to measure their success on how they are doing socially by instituting annual social audits such as improving their environmental foot print. The company focuses on recycling and waste reduction. People purchase Ben and Jerry’s ice cream with the belief that they are buying into a company that has an ethic. They use their packaging and ice cream flavors to tackle issues close to people’s hearts for example, their global warming ice cream. People can find more information about the ethical issues by going onto the company’s website. The company also champions a wide array of causes beyond ice cream such as a demonstration that tried to get the government to label milk products sourced from cloned cows. Overall this creates a positive image for Ben and Jerry’s as they are showing that they care about the environment which is important, as being such a large company they have a big carbon footprint. As a result customers are more incline to purchase their products. However this varies from their competitors for example; Magnum tends to focus on being an attractive brand with sexually appealing women advertising their products. This creates a ‘sexy’ image for the brand making it more appealing to its customer base.

We also looked at the anatomy of the products in the sector and what we believed to be the most influential factors that determine the brands’ relative positioning. We decided that the success of Ben and Jerry’s isn't just from the unusual ice cream selection, but from progressive social missions that calls for the company to look at the larger interest of the community rather than only the financial interest of the business. Being in a caring community based business makes business more profitable, as owner Jerry Greenfield said ‘if you help others you are helped in return’.

Adistats,

Jasmine

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Adidas' Stakeholders.

Adidas’ stakeholders are people or organisations whom have an effect on or are affected by the businesses operations. Adidas doesn’t work in separation from society and their stakeholders have a legitimate interest in the way they do business. Below, displays examples of Adidas’ diverse group of stakeholders…

·         Employees of the Adidas Group

·         Authorisers government, trade associations, shareholders, Board of Directors

·         Business partners unions, suppliers, service providers

·         Workers in our suppliers' factories

·         Opinion-formers journalists, community members, special interest groups

·         Customers professional sports people, distributors, retailers, consumer

Adidas try to involve themselves with their stakeholders in numerous amount of ways. For example, formal consultation meetings, called 'stakeholder dialogues' are held with workers, union representatives, NGOs and suppliers. Reports of the meetings can be downloaded from the Adidas corporatize website, allowing members to access what has been discussed. Adidas also respond to enquiries from consumers and the media, collaborate with other brands in joint initiatives and outreach to graduates and the academic community.

When Adidas are approached by their stakeholders they revert to their clear policy which states ‘we actively engage, we listen, we seek to understand their concerns and where it is within our ability, we act’.

Adidas claim that then when you have a well-developed sustainability programme, as they have; engagement is rarely a one-off event: ‘stakeholder relationships develop over time and along the way, the nature of the dialogue changes, and matures’.

In 2010, the Adidas Company continued to pursue many long-standing engagements, such as the International Worker Rights Consortium in the USA, as well as trade unions in Bangladesh, Cambodia and Indonesia. Concerns over forced child labour in Uzbekistan's cotton fields meant that Adidas needed to engage with the Ministry of Foreign Affairs in Germany and call for enforcement of the law related to minimum wages. In Cambodia, Adidas asked the government to support freedom of association for striking workers. In El Salvador Adidas called for a greater enforcement of the law to benefit their workers and in Indonesia asked for the government's support for a possible factory closure. This creates a positive image for Adidas, making their stakeholders more incline to invest.

Adidas sponsored the 2010 FIFA World Cup South Africa™ which raised concerns with many international stakeholders who voiced their concerns over labour rights in the football industry. As a result Adidas provided an International Labour Rights Forum enclosed with their views on research and supporting information on pay and conditions in the stitching centres and factories that make Adidas ball products in Sialkot.

Adistats,

Jasmine

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Critical Success Factors and Tiger Beer

During this weeks breakout session we looked at the beer industry, with particular focus on 'Tiger Beer'. We discussed that people buy beer as a simple commodity and often can choose different brands dependent on price or special offers. This may be particularly true of students as their budget is smaller although their intake can be larger. However, it was discussed in the lecture that "product quality [was] not perceived as relevant" to which we argued that this may not be true of an older generation who may have the funds to decide on the quality of beer he would like to drink. 
Through the video clips shown, we all agreed that Heineken was trying to differentiate itself as the more sophisticated brand in which to buy. This was denoted within the advert through "The Switch" that drinking Heineken produces - transforming the venue that the beer is ordered in from a run down pub to a swanky bar with attractive women and an upbeat lively atmosphere. 
However, Red Stripe Beer is aimed at a younger target market. They show a young man (aged around 20 years) preparing for a house party, picking out his socks and updating his status ready for the event. Through the duration of the advert a Jamaican group are narrating his process through a song (alluding to the brand's Jamaican roots) using slang such as "stoked" to further identify with the brands young market.
Tiger beer also has a relatively young target market, firstly drawing on the idea that Tiger Beer is a way to connect with young women (as they arrive at his door requesting a bottle opener). This is the first time within the three adverts that women have been actively seen to be drinking beer in the foreground of the adverts, perhaps signifying the universal popularity of the brand. This is then continued in the second advert, where a young man travels across the world using the particular brand of beer to settle disputes in a vast array of languages as each nation is aware of the brand and fond of the produce. In its catch line "Here's to always working it out, here's to tiger time" it also implies that drinking the beer is therapeutic and a way in which to relax and resolve situations, taking the brand away from the idea of alcohol-fueled violence and charged emotions that is often reported in the media when drinking. 



Our group this week also met to decipher the critical success factors in association with the TOWS report we conducted. Our results were concluded by comparing the results from the 4 main components of the report:

• Threats
• Opportunities 
• Weaknesses
• Strengths

Firstly we addressed our weaknesses in association with our threats to see how we could use a weakness to combat a threat. One main threat is Nike and the proportion of the market they hold, with our less prominent advertising strategies being one of their main weaknesses.Therefore, within using their readily established relationships within the sporting field (generated through sponsorships of different athletes) they could try to eat into some of Nike's customer base through a wide scale push on advertising. 

Secondly, there is opportunity to reorganize the company to increase the efficiency of business and production. This can coincide with the weakness that it depends on third party manufacturing. Therefore a second critical success factor could be to restructure the company which could mean cutting out intermediaries in production. Moreover, this could potentially lead to a decrease in the main threat that Adidas suffers from in the production of counterfeit goods, which is generally manufactured in the companies in which its main production sites are housed. 

Furthermore, Adidas have an opportunity to capitalise on their ongoing research and developments of products to rise above the competition it faces from other brands such as Nike. 

Finally, with such a strong brand portfolio Adidas could increase its online prescence, ensuring it takes full advantage of the growing online marketplace. 

Together we developed our TOWS criteria and used research and ideas from the group to decipher our key critical success factors. 

Action points:

• This week we need to ensure that we have matched all the criteria and covered all the relevant points for this project in order to receive the highest possible grade we can
• Then our next aim is to bring together all this information in the form of an infographic
• We also need to ensure each member has all the required paperwork ready to hand in the project for Monday 11th
• We also thought it would be a good idea for someone to document how we brought the project together in a final blog

Adistats

Jessica

H

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