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Analytical Business Report- Adidas

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Executive Summary

This paper presents an analytical business report on ethical consumerism. The aim of this assignment is to reveal the meaning of ethical consumption in markets. To this end, Adidas Company is critically reviewed. Adidas manufactures sportswear and equipment. This report uses a survey design where a questionnaire or an opinion survey is the data collection instrument. Ethical consumerism is influenced by several factors some of which are, the quality of the products, advertisements, brand image and the moral value that users attach to different products. Corporate social responsibility and appropriate advertising are some of the activities that improve ethical consumerism. The data collected in this study is analyzed and presented in tables and figures.


Executive Summary 2
List of Tables 4
List of Figures 5
1.0 Background of the Study 6
1.1 Introduction 6
2.0 Literature Review 6
2.1 Overview of Ethical consumerism 6
2.2 Review of Adidas Company 9
2.2.1 Adidas Mission, Vision and Values 10
3.0 Methodology 12
4.0 Results of Survey 12
4.1 Response rate 12
4.2 Price of Adidas products 13
4.3 Quality of Adidas products 15
4.4 Brand Image of Adidas 16
4.5 Convenience for purchasing Adidas products 17
4.6 Attractiveness of Adidas products 18
4.7 Usefulness of Adidas Products 19
4.8 Advertisement for Adidas products 20
4.9 Ethical Values attached to Adidas products 21
5.0 Conclusion 22
6.0 Recommedations 22
Reference List 24
Questionnaire 25

List of Tables

Table 4.1 Response Rate……………………………………………………………………13

Table 4.2 Price of Adidas products………………………………………………………....14

Table 4.3 Quality……………………………………………………………………………15

Table 4.4 Brand image………………………………………………………………….......16

Table 4.5 Convenience……………………………………………………………………...17

Table 4.6 Attractiveness………………………………………………………………….....18

Table 4.7 Usefulness………………………………………………………………………..19

Table 4.8 Advertisements……………………………………………………………….….20

Table 4.9 Ethical Value……………………………………………………………………..21

List of Figures

Figure 4.1 Response Rate……………………………………………………………………13

Figure 4.2 Price of Adidas products………………………………………………………....14

Figure 4.3 Quality……………………………………………………………………………15

Figure 4.4 Brand image……………………………………………………………….….......16

Figure 4.5 Convenience……………………………………………………………………....17

Figure 4.6 Attractiveness…………………………………………………………………......18

Figure 4.7 Usefulness…………………………………………………………………….…..19

Figure 4.8 Advertisements……………………………………………………………….…..20

Figure 4.9 Ethical Value……………………………………………………………………...21

An Analytical Business Report on What Ethical Consumerism Means for Businesses

1.0 Background of the Study

1.1 Introduction

Ethical consumerism is a universal concept in marketing practices. According to Singh (2009), ethical consumerism is the practice of buying services and products manufactured in a manner that reduces environmental or social damage. Ethical consumerism is also the method of avoiding buying services or products deemed to possess negative influences or effects on the environment or the society (Saito, 2009). Other words for ethical consumerism are moral purchasing, ethical consumption, ethical sourcing, ethical purchasing, green consumerism or ethical shopping (Collins, 2012). This concept of ethical consumerism is based on positive buying. This fact means that consumers morally boycott unethical or negative products and favor ethical products. Corporations have been awarded ethical consumer's scores or ratings over the years. A UK magazine entitled the ethical consumer is one of the publications that publish such ratings. In business, ethical consumerism is a broad label for businesses providing goods that attract best selves. Healey (2013), argues that five sectors are included in the market for ethical products. These areas are the green home, ethical finance, ethical food and drink, ethical personal products and eco-travel and transport. For example, a purchase that has some of its value going to a charitable cause or a donation. Analysis of ethical consumerism reveals that in business, it links ethics and products purchases.

2.0 Literature Review

2.1 A brief overview and analysis of ethical consumerism

Ethical consumerism drives sales and influences the market share that manufacturing Corporations possess. Corporate social responsibility is itself a practice of ethical consumerism. Studies on ethical consumerism have revealed the most ethical Corporations or brands in the world. Some of these top ethical brands are Coca-Cola, Cooperative bank in the UK, Nestle Corporation in Spain, Adidas in Germany and Danone in France. However, the UK list for the 15 top ethical companies lacked these five Corporations.

Ethical consumption refers to the purchase of products that are not harmful to the society or the environment and which conversion process was ethical. Moral use can be as complex as refusing to buy goods whose production involves child labor or as easy as agreeing to buy free-range eggs. Some of the goods that fall into the classification of ethical goods are electricity from renewable sources, organic produce, electric bulbs that are energy efficient, approved wood products and recycled paper (Hogg, 2006).

Lobby groups raise red flags towards companies that provide unethical goods or products that are harmful to the environment and the society. An example of such Corporation that flags businesses is the Ethical Consumer Research Association. This association publishes details in its magazine. Nonetheless, it 's hard for consumers to decide what to purchase and not what to buy (Pride & Ferrel, 2003. This difficulty is also manifest when investors choose the ethical funds or businesses to invest their wealth.

Ethical consumerism can also involve an evaluation of the effort and resources needed to get products to consumers. For this reason, it is wise for ethical consumers to buy locally produced goods. This action reduces the costs of purchase while making the customer aware of the ethicality of the products since when they are raw materials, through the transformation process and finally as finished goods. Ethical consumers must find the markets that are near them when they seek to purchase products.

According to Surhone, Timpledon & Marseken (2010), ethical consumerism is a powerful tool for change. A case point for this device is the anti- GM association or lobby group. Nonetheless, there is a long way to go to achieve ethical consumption fully. An illustration of this could be the recent report on moral use released by the Co-operative Bank of the UK. This report revealed that only 3 percent of United Kingdom consumers are worried about ethical use. Again, only 3 percent of the UK goods market is concerned to the ethical manufacturing of products (Rossouw & Vuuren, 2010). Some critics argue that moral consumption is dead and is irrelevant. Nonetheless, their argument is baseless because nothing will deter consumers from consuming ethical goods when they receive perfect information on ethical consumerism.

Ethical consumption for businesses means that more customers or users select buying products that are distributed ethically, sourced ethically and manufactured ethically. Customers are exploited or abused when they are unaware of the ethicality of the products they are buying. Green consumerism is mostly practice in marketing which has got impacts on the environment (Hogg, 2006). Ethical businesses have corporate social responsibility plans and choose to produce healthy goods. Ethical buyers are more concerned with the good of a product than its price. They compare the products regarding the source and the brand. Ethical consumers also consider several other aspects in products (Saito, 2009). Some of these aspects are;

• Ethical source of raw materials, transformation and distribution

• Pure and natural components or ingredients

• Clarification of nutritional value

• Labor must be fair

• Transparent goods

• Protection of human rights and human health

• Respect for the environment

• Ethical advertising and marketing practices

• Sustainability and recyclability

• Product CSR or giving back to the society or stakeholders

Businesses are increasingly considering the aspect of ethical consumption as it influences their sales, market share, competitive edge, and product positioning and market responsiveness. Ethical consumption is a good strategy for businesses to adopt because it increases a company's image or reputation. When the reputation of business is enhanced the revenue increases due to increased purchases from customers. Ethical consumption is a mutually beneficial strategy, on one hand it enables users to access ethical goods and on the contrary, it increases sales and market share for businesses.

2.2 A detailed review of Adidas Company

The Company for analysis is Adidas Company. Adidas is a multinational which specializes in sports clothes, equipment, and shoes. Adidas is ranked as the second manufacturer of sporting products behind Nike. Adidas has branches or subsidiaries in about 170 countries. Adidas has been in the sports industry for over 80 years. Adidas has delivered a state of the art sportswear, accessories, and apparel. Currently, Adidas is one of the leading companies in the manufacture of sports products. Adidas sports goods are virtually present in almost every corner of the globe. This Corporation operates on a simple strategy. Adidas business model and strategy focuses on creating a passion for innovation, strengthening their products and brands with an aim of improving financial performance and competitive position. Adidas headquarter in Germany a place called Herzogenaurach. This Corporation also runs development departments and creation centers at other locations in the world. These production centers complement the specific business roles of Adidas. Adidas brands include;

• Adidas, which is the line of apparel, footwear and other sporting accessories, It is located at the headquarters in Germany.

• Reebok: the global center for Reebok is found in Canton, Massachusetts in the United States. This subsidiary specializes in accessories, apparel, and footwear in both the performance arenas and sports.

• Taylor Adidas Golf: the headquarters for this brand is in California. This subsidiary focuses on golf accessories and equipment. Some of this equipment include golf balls, putters, metal woods and iron.

• Rockport: the headquarters for this subsidiary is in Massachusetts the same place where Reebok is situated. The brands produced at this subsidiary are casual wear, dresses, Rockport designs and outdoor footwear. All these accessories connect modern style with the dynamic technology.

2.2.1 Adidas Mission, Vision, and Values

Mission and Vision

• Adidas is committed to the passion for innovation, strengthening their products and brands with an aim of improving financial performance and competitive position.

• Adidas works hard to be the world leader in the sporting industry with products that are anchored on a sporting lifestyle and a passion for sporting activities.

• Adidas are design leaders and innovators who strive to improve the skills of every sporting person to enhance their performance in the sporting activities.

• Adidas is consumer oriented. To this end, Adidas enhances the feel, the look and the image of their organizational structures and their products. This enhancement focuses on matching the expectations of the users', and the provision of goods with highest value or satisfaction.

• Adidas is a multinational organization that is environmentally and socially responsible. Adidas embraces diversity, creativity and rewards its workforce and its shareowners financially.

• Adidas focuses on delivering or achieving their financial goals.

Values of the Adidas Group

The Adidas group is founded on four critical organizational values. These values are integrity, passion, performance, and diversity.

From the above description of the Adidas Company, it is clear that Adidas is an ethical Company. The first point to prove that Adidas is an organization that enables ethical consumerism is when Adidas sponsor various sporting activities like athletics. For instance, Adidas was one of the largest sponsors of the London Olympics of the year 2012. This sponsorship is just one of the many that Adidas has sponsored. Sports sponsorship is a form of corporate social responsibility activity that enhances the welfare of the community. When Adidas sponsors Olympics and other sporting activities, their public image is enhanced. Consumers or users of Adidas products and accessories are willing to buy more quantities of Adidas products as they are aware that part of the value of purchase goes to the sponsorship of CSR activities. Adidas values also illustrate that Adidas is concerned about ethical consumerism. For instance, Adidas indicates in their core values that they are ethical, open, honest and fair. Customers and other partners trust Adidas products and equipment. Adidas is also an environmentally and socially responsible organization that focuses on diversity and creativity. Adidas manufactures sporting goods that enhance the safety of sportspeople. Adidas is also committed to the production of sporting goods that increases the sporting skill and performance of athletes, golfers, and other sportsmen.
3.0 Methodology

This report uses a case study design. According to (Kothari, 2001), a case study design is a research on one particular organization from which generalizations are made. To this end, this ethical consumerism report analyzes Adidas Corporation. The findings of this study will be applied to create an understanding of the meaning of ethical consumerism in businesses. The survey instrument or the data collection instrument for this study is a short structured questionnaire. The sample for this activity report is ten students who are from GSM London. The analyzed data is presented in tables and charts.

4.0 Results of a Short Opinion Survey

The opinion survey was based on eight fundamental questions involving different aspects of Adidas marketing and the brands that they offer to their consumers. The response rate for the survey instrument was 100 % as indicated in the table below.

4.1 Response Rate

A total of 10 questionnaires were issued to the participants, and all of them were returned

Table 4.1 Response Rate

|Response |Frequency |Percentage |
|Returned |10 |100 |
|Not returned |0 |0 |
|Total |10 |100 |

Table 4.1 (Data, 2016)

Figure 4.1 Response Rate



From the data illustrated above, it is clear that all issued questionnaires were returned at a rate of 100 %.

4.2 Price of Adidas Products

The study participants were asked if they feel that price for Adidas products is fair. The following table shows the results.

Table 4.2 Price of Adidas Products

|Price |Frequency |Percentage |
|Fair |3 |30 |
|Moderate |3 |30 |
|Unfair |4 |40 |
|Total |10 |100 |

Table 4.2 (Data, 2016)

Figure 4.2 Price of Adidas products


From the above illustrations, it is evident that 40 % of the respondents said that the price of Adidas products is fair while only 30 % and 30 % stated that the price is moderate and unfair respectively.

4.3 Quality of Adidas Products

The participants answered questions related to the quality of Adidas products. The results of this question are indicated in the table below.

Table 4.3 Quality of Adidas Products

|Quality |Frequency |Percentage |
|High |8 |80 |
|Moderate |1 |10 |
|Low |1 |10 |
|Total |10 |100 |

Table 4.3 (Data, 2016)

Figure 4.3 Quality of Adidas products


80 % of the respondents said that the quality of Adidas products is high while 10 % stated that the quality is moderate, and another 10 % indicated that the quality is low.

4.4 The brand image of Adidas

The questionnaire also required the ten respondents to fill in how they perceive the image of Adidas brands. The following table shows what the respondents said.

Table 4.4 The brand image of Adidas

|Brand image |Frequency |Percentage |
|Good |9 |90 |
|Fairly good |1 |10 |
|Bad |0 |- |
|Total |10 |100 |

Table 4.4 (Data, 2016)

Figure 4.4 The brand image of Adidas


90 % of the respondents confirmed that the brand image for Adidas products is excellent, and another 10 % of the participants said that the brand image for their products is relatively good. No respondent stated that the brand image for Adidas was wrong.

4.5 Convenience for Purchasing Adidas Products

The respondents also revealed the convenience that they attach to Adidas products. The following table indicates the outcome of their response concerning this question.

Table 4.5 The Convenience for Purchasing Adidas Products

|Convenience |Frequency |Percentage |
|Yes |7 |70 |
|No |2 |20 |
|Not sure |1 |10 |
|Total |10 |100 |

Table 4.5 (Data, 2016)

Figure 4.5 The Convenience for Purchasing Adidas products


70 % of the respondents said that Adidas products are convenient; another 20 % confirmed that Adidas products are not suitable. The remaining 10 % of the participants confirmed that they are not sure of the convenience of Adidas products.

4.6 Attractiveness of Adidas products

The following were the results for this part of the questionnaire.

Table 4.6 Attractiveness of Adidas Products

|Attractiveness |Frequency |Percentage |
|Yes |8 |80 |
|No |2 |20 |
|Total |10 |10 |

Table 4.6 (Data, 2016)

Figure 4.6 The attractiveness of Adidas products


80 % of the respondents confirmed that Adidas products are attractive, and 20 % of the interviewees said that Adidas products are not appealing.

4.7 Usefulness of Adidas products

The respondents indicated the use of Adidas products as follows;

|Use |Frequency |Percentage |
|Regular use |5 |50 |
|Periodic use |3 |30 |
|No use |2 |20 |
|Total |10 |100 |

Table 4.7 (Data, 2016)

Figure 4.7 The Usefulness of Adidas products


50 % of the participants indicated that the use Adidas products regularly, another 30 % said that they use Adidas products periodically, and another 20 % of the respondents stated that they do not use Adidas products at all.

4.8 Advertisement of Adidas products

The respondents indicated their perception on the advertisements of Adidas products. The following table shows their responses;

|Advertisement |Frequency |Percentage |
|Aggressive |5 |50 |
|Moderate |3 |30 |
|No advertisement |2 |20 |
|Total |10 |100 |

Table 4.8 (Data, 2016)

Figure 4.8 The Advertisement of Adidas products


50 % of the participants said that advertisement for Adidas products is aggressive, 30 % said that Adidas ads are moderate, and 20 % of the participants indicated that they are not aware advertisement for Adidas products

4.9 Ethical Value attached to Adidas products

The following table shows the moral value that the respondents attach to Adidas products.

|Value |Frequency |Percentage |
|High |6 |60 |
|Moderate |2 |20 |
|Low |2 |20 |
|Total |10 |100 |

Table 4.9 ( Data, 2016)

Figure 4.9 The Ethical Value attached to Adidas products


This question looked at the ethical values that users of Adidas products attach to Adidas products. 60 % of the respondents said that the moral value of Adidas products is high, another 20 % of the participants indicated that the ethical value of Adidas products is moderate. Only 20 % of the respondents said that the moral value of Adidas products is little.

5.0 Conclusion

Ethical consumerism means the purchase of goods that are produced ethically, and that promote safety and environmental sustainability. From this study, it is clear that several factors influence consumer behavior. Some of these factors are price, convenience, usefulness, quality, and ethical value of products, advertisement, attractiveness and the brand image (Bedford, 2000). The meaning of ethical consumerism in businesses is that businesses produce moral goods that promote the safety of their users and also care for the environment. Adidas Corporation is one of the largest sports Company in the sporting industry. It has been ethical through manufacturing of quality products and CSR activities. Adidas is a leading sponsor of sports. It has sponsored several sporting events including the London Olympics that occurred four years ago. The benefits of ethical consumerism in business are that it increases sales through widening the market share. The ultimate impact is that a company operates in the competitive edge due to the enhanced competitiveness and revenue.

6.0 Recommendations

The following are some of the recommendations to firms or companies

• Companies must plan and execute CSR programs that are mutually beneficial.

• Companies must produce ethical products if at all they need to promote ethical consumption.

• Organizations should study their consumer buying behavior by applying the concept of ethical consumerism.

• When products of a company are boycotted, it is critical for the company to change their production strategies so that they can incorporate ethical consumerism.

• Corporations must enhance the quality of their products, their advertisements, branding and the moral value of their products. When the act as such they improve ethical consumption, consumer buying behavior, and their competitiveness.

Reference List

Bedford, T.M., 2000. Ethical consumerism everyday negotiations in the construction of an ethical self, University of London.
Collins, D., 2012. Business ethics, Hoboken, NJ: John Wiley & Sons.
Healey, J., 2013. Ethical consumerism,
Hogg, M.K., 2006. Consumer Behavior, London: Sage Publ.
Pride, W.M. & Ferrel, O..C., 2003. Study Guide Marketing: concepts and strategies, Boston: Houghton Mifflin Co.
Rossouw, D. & Vuuren, L.V., 2010. Business ethics, Cape Town, Republic of South Africa: Oxford University Press.
Saito, F., 2009. Consumer behavior, New York: Nova Science Publishers.
Saucier, R.D., 2008. Marketing ethics, Lewiston: Edwin Mellen Press.
Singh, J.J., 2009. Consumer ethics: the role of incidental emotion, moral intensity, and affective commitment,
Surhone, L.M., Timpledon, M.T. & Marseken, S.F., 2010. Market segmentation: economics, marketing, customer relationship management, industrial market segmentation, marketing effectiveness, database marketing, Beau Bassin, Mauritius: Betascript Publishing.

Appendix – Opinion Survey

Please respond to the following Questionnaire by filling in the appropriate response. The anonymity of respondents is highly maintained. Your responses will be handled with utmost confidentiality and will be only used for this study. Please tick the responses appropriately.

I). What would you say about the price of Adidas Products?




II). How would you rate the quality of Adidas Products?



C).Low/ substandard

III). What would you say about the brand image of Adidas Products?


B).Fairly good

C). Bad

IV). Do you think that purchasing Adidas products is convenient?



C). Not sure

V). Are Adidas product attractive to you when you find them displayed in shops?



VI). Please say something about the usefulness of Adidas products.

A).Regular use

B).Periodic use

C).Do not use them at all

VII). How would you rate the advertisements of Adidas Products?

A).Aggressive advertisement

B).Moderate advertisement

C).No advertisement

VIII). What is the ethical value do you attach to Adidas products?

A).High value

B).Moderate value

C).Low value









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