Comprehensive Marketing Audit Report of Adidas UK - MKT3017

This report provides a comprehensive marketing audit of Adidas within the UK market, analyzing its current position among competitors. It includes a PESTLE analysis to assess the impact of macro-environmental factors and a SWOT analysis to evaluate internal strengths and weaknesses, as well as external opportunities and threats. The report also conducts a micro-analysis to understand factors directly influencing the business and offers a comparative analysis of Adidas against its rivals. The ultimate goal is to provide strategic recommendations for enhancing Adidas's future market position, focusing on areas such as sustainable materials, online sales strategies, and brand engagement campaigns.

Principles of
Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Stating the brand and background...............................................................................................4
Macro analysis............................................................................................................................5
Conducting Micro analysis for the quoted firm..........................................................................6
Analysing the company competitive analysis.............................................................................8
Presenting SWOT analysis for the quoted firm..........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Executive summary:
The aim of the report is to identify current position of the Adidas amongst the other
competitors that are operating in the UK market. Further, the report had analysed the impact of
internal and external factors that affects the operations of the company through conducting
proper SWOT and PESTLE analysis. Further, the study had identified factors that are
responsible for business through micro analysis. Also, comparative analysis of quoted firm along
with other rivalries had also been covered. Lastly, certain recommendations for developing
future strategic position had also been discussed.

INTRODUCTION.
Marketings helps in selling the goods of the company in the most effective manner and
also using the right marketing technique help the firm in generating greater revenues. The
present report is based on Adidas which is global brand in the sportswear selling variety of
sports products and thus detail operations of the firm in UK country will be analysed. Also, the
report will conduct the PESTLE AND SWOT analysis so that better strategies and policies for
the quoted firm could be developed in the future. Further, micro analysis of the firm will help in
the firm in developing better organization structure against the competitors. Lastly, certain
suggestions will also be discussed under this report in detail so that better brand image could be
developed in the future.
MAIN BODY.
Stating the brand and background.
Adidas is multinational corporation in Germany that is selling variety of goods such as
apparel, shoes, sporting goods and much more. Also, company is running successfully in
different regions through catering needs of the people in systematic manner. Further, in UK the
company has changed the lives of many people through using the latest technologies so that best
of goods could be delivered (Pride and Ferrell , 2021). Also, quoted firm is aiming to expand the
current market through making all its products that are made out of sustainable materials. The
market that is been selected for auditing is United kingdom as people are actively involved in
rising sports participation and most of them are concern about the health and well-being thus
active in purchasing sportswear to remain fit and healthy.
Furthermore, current market of UK is highly developed, market oriented and diversified
etc. Hence, quoted firm need to continuously bring innovative products' so that it can stay ahead
in the competition for the longer run. Moreover, it is seen that its online store is more focused on
increasing overall sales of the company through introducing various promotions and offers so
that more people get attracted (Rezaeinejad, 2021). Also, the firm believes that through sport, it
has the power to change lives of other people and for this purpose firm ensures that better
engagement is developed. Further, it is seen that company is aiming to launch campaign
“celebrate originality ” and improve the budgets so that market share and growth could be
achieved in those regions where the brand awareness is weak.

Moreover, it is seen that Adidas is active in capturing large markets through developing
corporate level strategies so that competitive advantage could be gained.
Macro analysis.
This type of analysis is helpful for companies so that external factors could be closely
identified so that firm could develop the policies accordingly. This could be further linked to the
PESTLE analysis that is as follows :
Political factors :
Factors such as taxes, instability and trade restrictions and much more are also
responsible for all the activities that are carried out within the company (Hole, Pawar and
Bhaskar, 2018). Thus, in case of Adidas it can be said that if political situations in the country
are not better than it would not be able to sold large variety of goods to the target customers as it
can be seen that company need to pay higher taxes when selling goods in the Chinese market
after the dispute. Thus, such situations might create negative impact on the operations of the
company in the long run.
Economic factors:
In any country factors such as inflation, unemployment rates, import export restrictions
etc. helps in defining the policy of the business in any particular sector. Also, it can be said that
these factors need to be closely examined by any firm so that chances of losses are very less. For
Adidas during times of pandemic sales were largely affected but even though the firm had great
opportunity to employ large number of people at lower rates due to higher unemployment in the
country (Liu and Levin, 2018). Furthermore, another aspects such as inflation might also affect
the revenue for the firm as if inflation rate is higher in UK than quoted firm products prices
would be higher that would result in lower sales as people would switch to other options
available in the markets.
Social factors:
There are continuous changes in social trends, culture and fashion in the UK market.
Thus, the demand of the majority of the people are based on the current situation in the country.
Also, it can be seen that people now are more concerned about the health and thus are actively
involved in purchasing sports products to remain fit and healthy. In context of Adidas it is
positive factor as the company itself is targeting health conscious people and also supporting
various communities' so that health of the individuals could be maintained.

Technological factors:
To sustain in the ever-changing environment it is essential that all the brands are active in
adapting to the latest technologies so that dominant position in the market could be maintained.
Also, Adidas ensures that all the products are tested under various conditions so that
performance could be optimized to great level (Sterev, 2017). Moreover, the firm is undergoing
various researches so that innovative products could be provided to number of people. Further,
with the online presence also the company is able to closely identified changing needs of the
customers. However, the company need to invest more on the technologies' so that more time
and cost could be saved and it could serve better than other rivalries that are present in the UK
market.
Legal factors:
Factors such as laws, regulation and business policies that are designed by the
government of country also affects sales of the company. Further, it could be seen that if these
legal laws are not abided properly than there are chances that firm might face future problems
(Palmatier and Sridhar, 2020). For instance quoted firm has ownership of various IP systems and
intellectual properties. Thus, it holds the patent rights that no other party could use the company
logo or name in manufacturing similar products. Moreover, if certain allegations such as earlier
problems of logo are faced by Adidas than there are chances that firm might not be able to work
properly.
Environmental factors:
While manufacturing various products it is essential that environment is not harmed in
any manner so that there is no misuse of resources. Also, companies need to ensure that ethical
practices are followed so that brand value could be maintained. Further, in context of Adidas it
can be said that it has developed low waste initiative program that aims to reduce the carbon
footprint. Thus, the company is using oil based plastic so that less waste could be generated on
the planet.
Conducting Micro analysis for the quoted firm.
It is group of factors that are closely linked with the firm and are responsible for
influencing the performance of the company. Also, these factors could be easily controlled by the
firm through identifying and applying various appropriate measures. Some of them that have
affected the Adidas are as follows:

The company:
It is very important for the company like Adidas that is operating on large scale to
evaluate various groups that are operating within the company such as finance, marketing,
human resource, research and development etc. so that better marketing decisions could be taken
by the firm (Sadchenko and et.al., 2020). Also, this would help the firm in understanding the
current needs of the customers so that products could be changed accordingly.
Suppliers:
They are important part of any firm and management of Adidas keeps close contact with
all the supply chain networks so that faster delivery of goods could be undertaken. Also, through
well-established relationship through its supply chain networks the firm is able to address
various issues that the supply chain is facing in delivering any kind of products.
Marketing intermediaries:
This is also important part of business in delivering the quality output to public. Also, this
includes agents, merchant that helps the firms in finding loyal buyers, identifies the physical
distribution place, helps in moving goods from origin to the destination etc. Further, quoted firm
also utilize these intermediaries' so that goods could be delivered in timely manner to all the
customers and for this purpose it allows the products to be made available through co branded
and exclusive stores (Moravcikova and et.al., 2017).
Competitors:
It is found that presence of rivalries in the market allows the firm to use the available
resources in the best possible way so that it could stay ahead in the competition. For Adidas it is
can be said that the firm not only aims at being (successful) than rest of the competitors in UK
market like Nike, Puma, new balance etc. but also aims at developing the strategic position in the
market through various ways and techniques.
Customers :
Buyers are most important part of any firm as it is considered as main source of revenues
generation and developing the brand in the market. Also, for Adidas it is very essential to target
the right customer market segment so that better relationships could be created in the future
(Tomczak, Reinecke and Kuss, 2018). For this purpose the main target areas of quoted firm is
upper and upper middle class social groups that are concern in buying quality products that are
priced reasonably higher than other products available in the markets.

Analysing the company competitive analysis.
Competitive analysis is done on the basis of certain aspects that helps to distinguish one
firm with the another. Also, below is the comparison of three firms that are successfully working
in UK and other parts of the country.
Particulars Adidas Nike Puma
Strength It is one of the best
sports company brand
in the world (Akbar,
French and Lawson,
2019).
The firm is
recognized as one of
the good premium
brands that has strong
presence in the market.
It has established
brand value across
various regions
through employing
the best of the
expansion policies.
Weakness It has restricted supply
chain due to which
limited products are
available in the
market.
It has limited market
share as most of the
revenues for the firm
is based on smaller
groups of people.
The firm has smaller
market share than in
comparison with
other two competitors
so better policies need
to be developed.
Promotions and
expansions
During pandemic the
firm has updated and
changed online
official websites so
that better revenues
could be generated.
It is been partnering
with world-class
events in form of
social media
campaigns so that it
could expand to new
regions.
It is being tie up in
international events
and social justice
causes so that better
brand image and sales
could be generated in
new areas.
Threats The firm is mostly
dependent on third
party for outsourcing
activities. Thus,
through this company
is not able to exercise
Due to certain
allegations relating to
unfriendly labour
conditions, the firm
brand image has
suffered lot which is
The company has poor
marketing strategy due
to which it is not able
to enter and capture
new markets that is
very essential for

more power over the
others.
also major threat to the
firm (Comparative
SWOT Analysis of
Adidas, Nike, and
Puma, 2021).
continuous growth and
success.
It is also known that it
has faced trademark
loss due to Tri strip
logo that created many
problems of the firm
While speaking on the
Uyghur situation Nike
was punished and has
paid several penalties
to Chinese government
In event of the
pandemic there were
certain restrictions on
the trade that affected
the earnings of the
firm.
Presenting SWOT analysis for the quoted firm.
SWOT analysis is effective tool that helps in analysing various internal factors that are
affecting the overall profitability of the firm (Bernyte, 2018). Also, it helps the firms in devising
new methods and systems that would allow in overcoming weakness so that better services could
be provided. Further, through this technique the firm would be able to analyse the strategic
position in the target market so that business objectives could be achieved in systematic manner.
For Adidas below is the SWOT analysis table.
Strength
 It is one of the most powerful brand
that is recognized in every country.
Also, most of the products that are sold
are of high quality (Adidas SWOT
analysis, 2020)
 Further, firm has strong distribution
network that allows in selling various
products that are of diverse nature.
Weakness
 The company sells quite expensive
products that cannot be purchased by
low income groups that could also help
in generating more revenues for the
firm
 Due to limited product line the firm
might face certain future challenges if
sports products are not sold effectively.
Opportunities
 The quoted firm has benefit of
Threats
 The company also have the fear of

expanding the business through the e-
commerce platform that allows
reaching large number of customers in
limited time period.
 It would be beneficial for Adidas to
invest in smart technologies' so that
demand could be increased in the
market in systematic manner.
facing the stiff competition from other
rivalries that are offering more varieties
and styles.
 There are various counterfeit products
that are available in the market that
might create decrease the brand value
and sales of the firm due to its low
prices.
Recommendations:
Based on the above analysis it can be suggested to the firm that though it has employed
various means and measures to remain competitive in the market but it needs to invest more in
marketing activities so that majority of the people are aware of new launches in the market.
Further to fulfil this purpose it can use its official website where better promotions and
incentives could be given to large number of people so that sales could be increased especially
during any festive seasons (Bheekharry and Singh, 2019). Also, it to be suggested that firm
concentrates more on technologies so that better and innovative products could be launched in
best of manner. Further, the firm need to develop and communicate the ways in which the goods
would be produced in the most sustainable manner so that brand loyalty could be maintained and
organization could run in better manner.
CONCLUSION.
From the above report it can be concluded that it is very important for any firm to
develop the brand through using the effective marketing mix so that gaols could be achieved in
systematic manner. Further, the report had analysed various key aspects that Adidas is having
and what are the ways through which the firm could establish good market in UK. Moreover, the
study had analysed the current market of the company through conducting the PESTLE analysis
that is helpful in identifying the external factors affecting any business. Also, the study had
identified the effects of various intermediaries, customers, company etc. through conducting the
micro analysis. Moreover, a detailed competitive analysis of Nike, puma and Adidas had also

been covered under this report. Lastly, strength, weakness, opportunities and threats of the firm
had also been analysed along with certain recommendations for future improvements.

REFERENCES
Books and Journals.
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Bheekharry, N. D. and Singh, U. G., 2019. Integrating Information Technology and Marketing
for Better Customer Value. In Information Systems Design and Intelligent
Applications (pp. 1-9). Springer, Singapore.
Hole, Y., Pawar, S. and Bhaskar, M. P., 2018. Service marketing and quality
strategies. Periodicals of Engineering and Natural Sciences (PEN). 6(1). pp.182-196.
Liu, Y. and Levin, M. A., 2018. A progressive approach to teaching analytics in the marketing
curriculum. Marketing Education Review. 28(1). pp.14-27.
Moravcikova, D. and et.al., 2017. Green Marketing as the Source of the Competitive Advantage
of the Business. Sustainability. 9(12). p.2218.
Palmatier, R. W. and Sridhar, S., 2020. Marketing strategy: Based on first principles and data
analytics. Bloomsbury Publishing.
Pride, W. M. and Ferrell, O. C., 2021. Foundations of marketing. Cengage Learning.
Rezaeinejad, I., 2021. Impact Online Marketing Strategies on Improving the Status of Businesses
in the COVID-19 Situation in Iran. Asian Basic and Applied Research Journal. pp.24-
33.
Sadchenko, О. and et.al., 2020. Marketing tools in stimulating innovative activity of
enterprises. International journal of management. 11(6).
Sterev, N., 2017. Marketing Leadership: the industry 4.0 need of next generation
marketing. Trakia Journal of Sciences. 15(1). pp.99-103.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. The Information Basis of Marketing Planning.
In Strategic Marketing (pp. 19-48). Springer Gabler, Wiesbaden.
Online
Adidas SWOT analysis. 2020. [Online]. Available through :<https://bstrategyhub.com/adidas-
swot-analysis/>.