Adidas Case

This report will measure the effectiveness of Adidas’s advertising campaign. To achieve this goal this report will go through the French market analyse and the target consumers. Moreover, SWOT, PESTEL and Porter’s Five Forces analysis demonstrate the different opportunities in future for Adidas and the multiple factors influencing the sports equipment industry.

Adidas is one the leading company in the sports equipment industry (with Nike, Reebok…), recognizable with its three bands, and since few years he is launching very effective campaigns. This effectiveness it’s due to the celebrity endorsement. This report will be introduced by the introduction of the overview of Adidas’s market and secondly the sport equipment market in general.

Adidas is one of the largest companies in the sporting goods industry. The group has divided its operating activities by major brand into three divisions: Adidas, Reebok and TaylorMade-Adidas Golf. The group operates through more than 170 subsidiaries in Europe, the US and Asia, each focusing on a particular market or part of the manufacturing process. After the financial crisis of 2008 and economic difficulties of 2009, Adidas came back strongly in 2010 and can show an excellent year. The Group generated a record € 12 billion in sales, a growth of 9%, clearly outpacing his major competitors.As we can see in the table 1, in Europe the sports equipment market grew by 2.1% in 2011 to reach a value of €13.9 billion (Marketline 2012). And according to recent figures this growth will continue to increase, for more than 10% between 2011 and 2016 (Marketline, 2012).

The graph above clearly demonstrates that the French market is the most important as far as the sport equipment market is concerned, with a total value of €3.7 billion in 2011. The German and UK market, with respectively 18% (€3.5 billion) and 18.3% (€ 3.5 billion) of the market share, follow it. And then comes the Italian and Spanish