Adidas Plc



Adidas Plc.

Adidas Plc are a well-known worldwide brand name, which produces sports equipment and clothing for a variety of different customers. Originally it was a German Company set up to provide cheap and effective footwear for people to use when taking part in leisure activities (such as football, tennis and skiing).

During 2002 Adidas Plc held 73% of the European Sports Footwear market, which created an annual turnover of $5 billion. Its main footwear brands include Predator, Raptor and Torsion. Recently the business has looked to enter the clothing/training wear markets here in the UK. This has meant that the business has spent large amounts of money researching and developing such products as tracksuits/training tops/gym wear/leisurewear for customers to use.

Adidas Plc has a long history of promoting its products using well-known personalities. Recent examples have included David Beckham, Jonah Lomu, Andrew Farrell and Denise Lewis. This has not just taken place when the business uses advertising media, but also when these personalities are seen at awards evenings or social events.

The three main sportswear businesses have been blamed for “child/slave labour” in many third world countries such as Vietnam and India. As they have set up factories in these parts of the world to avoid having to pay higher wages in such countries as the UK and USA.

Questions.

1. Draw and label the product life cycle.

2. Explain what the 4Ps/marketing mix stand for.

3. Explain one point for each of the 4Ps that Adidas Plc would have to look at.

4. Explain what is meant by the term “brand name” (giving two examples of such brand names)?

5. Explain what the letters USP means?

6. Describe two USPs that Adidas Plc may have?

7. Explain one method of pricing?

8. Give examples of two methods of sales promotions that Adidas Plc may use and why?

9. Why has Adidas Plc entered the clothing/training wear markets here in the UK?

10. Identify two of Adidas’s competitors (explain why you think they are a competitor) giving an example of a product, which they use to compete with?

11. Why do you think each competitor has produced these products and how do they use them to compete with Adidas Plc?

12. What is primary research? Give an example that the business could use.

13. What is secondary research? Give an example that the business could use.

14. Why would Adidas use well-known people to promote their new products?

15. Explain what the term “advertising media” means (give two examples that Adidas Plc use)?

16. What do SWOT and PEST stand for? Why would a business use them?

17. Produce a SWOT analysis on Adidas Plc identifying two strengths, two weaknesses, two opportunities and two threats that you believe will affect the promotion and sale of this leisurewear.

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