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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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TOWS Matrix & Nintendo

In this weeks breakout session the topic was Nintendo and their latest and best gadgets. The group discussed and reflected on the given questions and came to an overall conclusion on each of the three products that where on show and the company as a whole. The organisation Nintendo have been extremely clever in the way in which they have marketed their recent products, as it has enabled them to cover all the market segments. By this we mean that Nintendo have a product for the young to the old, males and females and from the inactive to the active.

The first product we viewed was the Wii you, this is their latest in a range of Wii components that Nintendo have released. We found that it’s mainly aimed at the younger generation and family environment. This is clearly indicated in the way Nintendo have advertised this console. The bright theme and loud dance music will be highly appealing to kids, and throughout the advert it shows how young children will benefit the most from this gadget. However, they have also tried to push for another alternative, lower key couple and family market, by introducing movie capabilities and other mature features. As a group we liked this innovative add on to the older Wii console, but we all agreed that in comparison to other products on the market like the Xbox Kinetic, that it looked dated in terms of the technology used in its creation.

The next Nintendo product was the Wii fit, another extra add on to the Wii console. In this advert it was clear to see that the target market was busy mums, and the fact that no matter how much they had on their plate they still had time to have fun, being active on the Wii fitness board and game. Once again as a group we really liked this product, and many of us owned one ourselves. We thought that changing the target market in the adverts from families and kids to the individual mum was a good tactical move and will benefit the company massively as modern lives are only getting busier.

The final product advert we watched together was the older less demanding Nintendo DS. To complete their market dominance Nintendo have produced another product that appeals to all markets, but in this advert via the use of Terry Wogan they have narrowed this just to the older generation, with the theme of keeping the brain active and in shape from the comfort of your living room.  They achieved this look by incorporating aged and mature surrounding in the advert, for example a wood burning fireplace and the position of the dated armchair in a library. The final issue we considered was the use of the actor, as influential and clever person, Terry Wogan would inspire and encourage the sales of the DS.


At our current stage we a slightly behind the given point of progress, but after this weeks session we have arrange to meet up outside of the class hours to catch up. The main reason for this delay in development is because of the struggle we faced with the TOWS matrix. This was because we all got highly confused in how to complete it correctly with the information we had and more importantly didn’t have. This also had other consequence as not finishing the matrix meant we couldn’t move on to the critical success factors.

When we left the class session we were all assigned tasks to go and research and source information on Adidas as a whole company, which would enable us to complete the matrix when we meet up again in the library. Our findings showed that:

 Threats

• Counterfeit products may hurt brand image
• Intense competition may hurt brand image
• Foreign markets us susceptible to currency fluctuations

Opportunities

• Reorganization the potential to increase efficiency
• Sponsorship at event enhances company profile
• Growing online presence

Weaknesses

• Dependency on third party manufacturing

Strengths

• Research/ continuous development of new products
• Wide geographical market
• Strong brand portfolio

Action Points:

• Completion of critical success factors (CSF)
• The creation of the actual poster design and layout
• Preparation of continuing blogs

Adistats
Jordan Gillett

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Continuing research

During the marketing workshops this week, it became clear that there was some confusion as to what exactly  was meant by the "breakout sessions" for this module. As a result, many of the groups, including our own, have failed to document a reflection on the discussions we have within these "breakout sessions". However, our workshop leader is looking into this and we will update the blog accordingly next week.

Furthermore, due to illness and time constraints we were unable to gather the whole group this week in order to discuss the project in any detail. This has brought some concern to members of the group as it has, in effect, put us a week behind. Therefore, to rectify this issue, we will be meeting tomorrow in the scheduled workshop and setting aside tasks to undertake before arranging a large time frame in which to catch up on last weeks meeting and progress with this weeks assignments and blog. Our main task is to complete the TOWS analysis and therefore, to ensure it is completed thoroughly, I will be assigning each person one piece of research to analyse before our next meeting as Francis had collected and emailed key information such as the marketing reports and executive summary.

Action points:

• Assign people to specific reports to review before the end of the week
• Complete and blog a TOWS analysis
• Try to arrange a time in which we can meet regularly each week to avoid any confusion 
• Ensure everyone is aware of the 11th March deadline and build a plan of what we want to achieve and how we are going to achieve it within the time we have left

Adistats
Jessica

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Identifying the Micro and Macro Factors for Adidas

Adidas Micro and Macro Environmental Factors

Following today’s group session we discussed the history of Adidas in addition to reviewing each of our research findings. This included Adidas’s main brand lines, for example;

Adidas Performance

This sector is Adidas’s ‘Sport performance division’ which focuses on delivering their sport foot ware to its athletes. Their main target audience for these sport products are athletes participating in key sporting activities such as ‘football, running, training and basketball’.

(Fashiongear.fibre2fashion.com)

Adidas Original

Adidas Original focuses mainly on the fashion and style on particular products produced within their foot ware range. Furthermore, Adidas promote the famous ‘three stripes’ on well-known celebrities, for example David Beckham, therefore it markets their brand image as being stylish and fashionable.

However, our key task was to study our research we had collected to progress into our marketing audit for Adidas. As a team we collected our information to find out the Micro and Macro environmental factors for our brand.

Macro Factors for Adidas

The Macro environments are factors which are external to the company. This can be a number of effects, for example by using the PESTLE analysis factors can be;

• Political
• Economical
• Social
• Technological
• Environmental
• And Legal

 (ARMSTRONG, G., & KOTLER, P.2011)

PESTLE Analysis for Adidas

Political factors within the company are issues such as their employees’ health and safety, in addition to Adidas as an organization ensuring that their employees rights are kept.

Economical issues within Adidas’s organization are the fact that they provide employment within a variety of countries worldwide; moreover to decrease outlay Adidas has agreed ‘manufacturing contracts’ to other countries. Likewise, ‘Labor charges’ to manufacture their products are significantly higher in Germany where the foundation of Adidas was established. Therefore, the majority of factories are based within the Asian region. (Hale,2002)

Social elements that need to be considered within Adidas’s organization are, for example, Adidas sell their foot ware products worldwide; however they need to consider where their highest potential customers are. Within the United Kingdom there are many cities which most of them have local football teams. Moreover within London alone they have several; therefore the United Kingdom has a substantial consumer base. Furthermore, Adidas should take opportunity of this within the football seasons by promoting their products to expand their sales revenue.

Technological equipment should be utilized to the best of its ability. For example, using quality information systems and consistently updating their webpages.  By doing this it gives Adidas the opportunity to have efficiency in operations which primarily will improve their overall production. Therefore by doing this it will offer a high standard of customer service, likewise it can keep them in the lead of their market and may even give them an advantage over their competitors.

Environmental issues concerning Adidas are matters such as animal rights. This is because Adidas foot ware is produced from animal skin. Furthermore, as mentioned above Adidas produce their products mainly in China. The main reason for this is because of cheap labor, therefore Adidas need to consider the publicity they will receive.

Legal matters within the company such as adhering to the advertising standards and the sales and supply act. Adidas will need to obey these procedures in order not to be fined.

Micro Factors for Adidas

Whereas the Micro environmental factors are external elements that can affect Adidas, the Micro environmental factors are internal issues that can affect the organization. An effective way of researching all the factors that can influence the company is by using a SWOT analysis. This is a method of strategic planning in which Adidas can calculate their:

• Strengths
• Weaknesses
• Opportunities
• Threats

(ARMSTRONG, G., & KOTLER, P.2011)

Strengths within Adidas’s organization are that they are highly associated as a leading brand for popular sports around the world.

Weaknesses concerning Adidas as an organization can be issues such as their advertisement agencies are considered not to be at a higher standard as some competitors.

Opportunities are widely available to Adidas; they can take advantage of new technology, in addition to improving their current online business, which will result in demand for higher sales as their products are more easily accessible. Furthermore, Adidas has joined Reebok therefore it opens up opportunities for new business ventures.

Threats that mainly concern Adidas are their main competitor Nike. Nike is the leading brand in foot ware over Adidas and spends a considerable amount more on advertisement than Adidas. Furthermore, Adidas foot ware is considered as expensive therefore the average person cannot always afford their latest product. This has resulted in counterfeit Adidas products being copied.

Blog entry by Emma Hisket 08/02/2013

References 


Adidas, Sports Perfomance, Adidas Performance, Adidas Product Performance, Adidas Eyewear, Adidas Watches, Fibre2fashion. [online] Available at: http://fashiongear.fibre2fashion.com/brand-story/adidas/performance.asp [Accessed: 8 Feb 2013].

Google Books (n.d.) Business Environment. [online] Available at: http://books.google.co.uk/books?hl=en&lr=&id=09uqSNHNT9EC&oi=fnd&pg=PT19&dq=PESTLE+ANAYLISIS+BUSINESS&ots=tguZ_vew56&sig=5rnhoWMOIgkbTUCa61Dj55PuZPM [Accessed: 8 Feb 2013].

Sciencedirect.com (2004) ScienceDirect.com - European Journal of Operational Research - Strategic development and SWOT analysis at the University of Warwick. [online] Available at: http://www.sciencedirect.com/science/article/pii/S0377221703000626 [Accessed: 8 Feb 2013].

Onlinelibrary.wiley.com (2002) What Hope for ‘Ethical’ Trade in the Globalised Garment Industry? - Hale - 2002 - Antipode - Wiley Online Library. [online] Available at: http://onlinelibrary.wiley.com/doi/10.1111/1467-8330.00141/abstract [Accessed: 8 Mar 2013]

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Welcome to Adistats

We are first year students studying Business Studies with Marketing at University of the West of England, Bristol. Following our "Break Out" session in our Understanding the Market Process module, we formed our group consisting of five students and discussed which of the different markets we wanted to further research for our project.

Out of the four possible options, we chose to look at the footware market due to the the variety of the consumer markets that we could explore. Within this we then decided to look at Adidas as our specific brand within that sector, a brand which each of us have bought into over the years.

Our next decision was to divide our market into two different sectors:

• Functional Market
• Fashion Market

Furthermore, within these markets we then looked into the social and psychological influences; taking into account the endorsements and sponsorships that may affect buying behaviours amongst the functional market and fashion market.

Progress/Action Points:
At the end of the session, we allocated time within the week to write and produce this blog together. Following that, each of us have been set the task of basic brand research which will aid our initial study into the brand during our next meeting.

Until next week,

The group
Adistats

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