Carlo Ancelotti dismissed talk of Real Madrid being subjected to "sporting humiliation" by Barcelona in a 3-1 Supercopa de Espana final but accepts they are in a "difficult moment."
Barca dominated the El Clasico showdown in Riyadh on Sunday, claiming their first major trophy under head coach Xavi.
Teenage attacking midfielder Gavi was the star of the show, scoring the opening goal and laying one on for Robert Lewandowski just before half-time.
The 18-year-old Spain international also set up Gavi for the Blaugrana's third goal at the King Fahd Stadium, with Karim Benzema scoring a consolation in the closing stages.
Madrid were beaten by Villarreal in their last LaLiga game and trail leaders Barca by three points in the title race.
Although Xavi's side were much the better side, Los Blancos were the architects of their own downfall, making a mess of playing out for the back as they looked shaky at the back and were overrun in midfield by a vibrant Barca side.
Head coach Ancelotti said: "It's not a critical moment, it's a difficult and complicated moment. It usually happens over a season. It can be fixed with the usual commitment and the usual attitude.
"The players must realise that. These mistakes are easy to avoid."
The Italian added: "We gave away, it started even, there wasn't much rhythm and avoiding gifts is the first thing, but we have given two. We have to improve our physical condition and play as a team.
"The mistakes have been definitive. It wasn't a good match for anyone. Talking about sporting humiliation seems to me to be disrespectful. They were better, period."