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Posted on March 31st, 2013, by

In the current essay I would like to analyze the marketing environment of one of the most well-known and recognizable brands of the world ”“ Adidas. To begin with, it should be noted that marketing ”“ is the phenomenon of the XX century. As a fact, marketing is closely related to the basic categories of economic theory, such as sharing, profit maximization, utility, specialty and rationality.

It can be said that marketing ”“ is a comprehensive system of organizing production and promotion of products, focused on meeting the specific needs of consumers and profit-based research and market forecasting, the study of internal and external environment of enterprises exporting, developing strategies and tactics of behavior in the market with the help of marketing programs. As a rule, these programs laid the measures to improve the product and its range, the study of customers, competitors and competition, to ensure the pricing policy, demand creation, sales promotion and advertising, optimization of product distribution channels and marketing, organization of technical service and expanding the range of services presented. The objectives of marketing are market research, products, competitors, customers and other areas. Moreover, marketing service is engaged in the development tactics of the organization and the implementation of the commodity, pricing, marketing policies and strategies for moving goods to market, according to Barbara Smit (2008).

As a matter of fact, for over 80 years Adidas is the symbol of success in the world of sports. Company history began in 1920 when a young shoemaker from Herzogenaurach (Germany) Adolf Dassler stitched his first pair of athletic shoes. He wanted each athlete to have the equipment, which helped him to achieve better results. The idea was so viable that to date the company has achieved significant success both in sport and in business, and represents a wide range of products, ranging from basketball shoes and football boots, ending with sports clothing and shoes for hiking.

It is essential to noted that in 2010, the operating income of the company “Adidas-Salomon AG”¯ amounted to ā‚¬ 894 billion and profit amounted ā‚¬ 567 million. Today, the company’s share is about 19% of the world market of sports goods. As a fact, in “Adidas-Salomon AG”¯ there are employed approximately 14.000 employees. Over 3000 people are employed in two major centers of the company – at the headquarters, located in Herzogenaurach (Germany), and operations center in Portland (USA, Oregon). Also, research units are located in Portland and Sheynfilde (Germany), where work designers, engineers and experts in the field of biomechanics, which are engaged in developing new models of shoes and equipment and their tests. It can be said that “Adidas-Salomon AG”¯ operates through a network of more than a hundred branches, joint ventures and representative offices located in different countries. The company’s distribution policy is based on dividing the world into five regions: Europe / Middle East, Africa, North America, Asia / Pacific, Latin America. As a fact, company’s products can be purchased in more than 160 countries, according to Adidas Strategy (2011).

It can be said that marketing is one of five main business functions – management, production, marketing, finance, personnel, among which a leading role is played by management. However, with increasing awareness of exactly customer’s satisfaction is the key to obtaining and increasing profitability of enterprises, the leading role gradually shifts to marketing. Without any doubts, marketing in the company Adidas is very closely connected with all the features of the enterprise. Marketing accompanies the goods all the way the process of creating, pricing, marketing strategies and promotion. It should be noted that trade policy determines the optimum marketing tools impact on new product, product life cycle, predicts aging, which contributes to cost savings and efficiency gains. In turn, pricing policy helps to determine the true price of the goods, to identify factors, which influence the change in prices and a strategy for pricing change. This tactic does not miscalculate the entrepreneur in determining the price, and inflate it, in both cases could lead to bankruptcy. As a fact, marketing strategy of the goods lies in determining optimal sales channel, its width and length, the choice of broker and provider, the choice of markets, the ability to create its own trading network, which has the best effect on savings in a market environment where even the slightest mistake is punished by the competitor, according to Michael Lee (2010).

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