Adidas Word

8/3/2019 Adidas Word

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SUMMER INTERNSHIP PROJECT AT

ADIDAS

BY

MAHIMA BEDI

D1012SSISBE-B10276(DEL-2-DA-1171)

SG1

Indian Institute Of Planning and Management

Delhi

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CERTIFICATE

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Acknowledgement

It gives me immense pleasure to have this opportunity to thank Mr. Sumeet

Lohia and Mr. Rochit Bansal who provided me the opportunity to do this

training in such a healthy environment and with other infrastructural facilities

which initiated and helped me to work and go ahead with my training.

I would also like to thank them for their guidance which enabled me to carry out

my training successfully.

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Contents

Page No.

1. Executive Summary 5

2. Introduction 6

3. Project Objective 7

4. Retail footwear in India 8

5. Organised footwear Vs Unorganised footwear market 9

6. Retail apparel 10

7. Government FDI Policy 10

8. SWOT Analysis of EBOs, MBOs, Hypermarkets 11

9. Store Feedback Forms, Images and problems and

solutions of different Lifestyles and Shoppers stop 15- 61

10. Improving sell thru of the products 62

11. Possible Schemes to improve Business 63

12. Improving the Human Resource 64

13. Conclusions 65

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14. Bibliography 66

Executive Summary

This project report is a detailed study of the Large Format Store Retailing in

footwear and apparel in India and determining the impactful ways of Business

Improvisation.

It gives an overview how adidas can improve its sales in Multi Brand Outlets

like Shoppers Stop, Lifestyle etc. Also understanding and comparison of

competitive products like reebok, nike, puma, fila and their fast sellers and slow

sellers.

This project also studies the slides business of adidas, reebok, puma, nike and

fila.

This project also talks about the methods to exercise control on sales staff and

reducing the attrition rate.

There are suggestions on how the current Multi Brand Outlet Business of

Shoppers Stop and Lifestyle can be improved.

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Introduction

Adidas AG is a German sports apparel manufacturer and parent company of the

Adidas Group, which consists of the Reeboksportswear company, golfcompany (including Ashworth), and Rockport.

Besides sports footwear, the company also produces other products such as

bags, shirts, watches, eyewear and other sports and clothing-related goods. The

company is the largest sportswearmanufacturer in Europe and the second

biggest sportswear manufacturer in the world, after its American rivalNike.

Adidas was founded in 1948 by Adolf "Adi" Dassler, following the split of

Gebrder Dassler Schuhfabrikbetween him and his older brother, Rudolf.Rudolf later established Puma, which was the early rival of Adidas. Registered

in 1949, Adidas is currently based in Herzogenaurach, Germany, along with

Puma.

The company's clothing and shoe designs typically feature three parallel bars,

and the same motif is incorporated into Adidas's current official logo. The

"Three Stripes" were bought from the Finnish sport company Karhu Sports in

1951. The company revenue for 2009 was listed at10.38 billion and the 2008

figure at 10.80 billion

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http://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Parent_companyhttp://en.wikipedia.org/wiki/Reebokhttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Ashworth_(clothing)http://en.wikipedia.org/wiki/Rockport_(company)http://en.wikipedia.org/wiki/Sportswearhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/United_States_of_Americahttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Adolf_Dasslerhttp://en.wikipedia.org/wiki/Rudolf_Dasslerhttp://en.wikipedia.org/wiki/Puma_AGhttp://en.wikipedia.org/wiki/Herzogenaurachhttp://en.wikipedia.org/wiki/Three_stripeshttp://en.wikipedia.org/wiki/Logohttp://en.wikipedia.org/wiki/Karhu_Sportshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Euro_signhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Parent_companyhttp://en.wikipedia.org/wiki/Reebokhttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Ashworth_(clothing)http://en.wikipedia.org/wiki/Rockport_(company)http://en.wikipedia.org/wiki/Sportswearhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/United_States_of_Americahttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Adolf_Dasslerhttp://en.wikipedia.org/wiki/Rudolf_Dasslerhttp://en.wikipedia.org/wiki/Puma_AGhttp://en.wikipedia.org/wiki/Herzogenaurachhttp://en.wikipedia.org/wiki/Three_stripeshttp://en.wikipedia.org/wiki/Logohttp://en.wikipedia.org/wiki/Karhu_Sportshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Euro_sign


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PROJECT OBJECTIVE

As a management student we have undergone intense learning of

various departments of a business like finance, marketing, sales and

human resource management but now it was time for us to grab some

practical knowledge and test our managerial skills by applying all

managerial concepts.

I worked as an intern in the key sales account department in the

corporate office of the multinational company Adidas. It covered

understanding the sales of all the goods sold by the adidas at its own

outlets as well as sold by other vendors of adidas like Shoppers stop,

Lifestyle etc.

An understanding of adidas footwear and apparel sales and

competitors sales in MBOs and schemes to increase the business

and improve the sell thru of the products was the main motive of this

study.

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Project details

Retail footwear

Retail footwear segment in Indian is very price sensitive and has been steadily growing over

the year. Major part of the demand is met by the unorganised sector and still there is a

shortfall of 300 million pairs. Branded shoe market only account for 20% of the entire

market. While international brands largely dominate the higher end of the spectrum, the

lower end of the market is dominated by home-grown players as well as unorganised players.

While men's footwear is the biggest target category (contributing almost 48%), children's

(11%) and women's lifestyle footwear (41%) is not behind in the race.

Segment wise classification of price ranges in the mens footwear segments:

Segments Price Ranges in Rs % of growth

Mass market 185 700 60% (Liberty Bata)

Economy market 700- 1000 30% (Bata Liberty)

Sports market 1000 3000 7% (Nike Adidas)

Premium leathers 3000- 5000 5% (Charles and Keith)

Luxury 10000- 50000 1% (Gucci Louis Vuitton)

Segment wise classification of women footwear segment:

Segments Price Ranges in Rs % of growth

Traditional footwear 699 999 5%

Designer Footwear 599 799 10%

Formals 299 699 40%

Casual Wear 499 799 25%

Sports Shoes 500- 699 20%

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Organised footwear market Vs Unorganised

footwear market

The average growth in the industry has been estimated at 12% and is estimated

to touch Rs 47000 crore by 2025. Presently the Indian organised foot wear

market is dominated by mens footwear segment that contributes for nearly 60%

of the market where the casual footwear has been better off with two thirds of

the share in the mens segment. The unorganised players have the lions share in

the ladies and kids segment with 80 percent share. The organised footwear

brands have less penetration in the ladies footwear segment mainly due to the

complex buying behaviour of Indian women. The ladies and kids segment is

one of the fastest growing segments in the branded footwear market and many

foreign brands like Catwalk have ceased the opportunity and have set their

footprints in this segment which has been untapped by major traditional Indian

footwear brands. Considering this many of the Indian footwear brands have

seen growing opportunities in the segment to widen their product portfolio,

widen their risk appetite and increase their market share in the footwear G

segment by contributing to newer growing consumer segment which will boost

the bottom lines of the retail players. The business models of the footwear retail

players have been different with a wide popularity of stores in high streets,

malls and new formats such as store in store has been catching up even with

international brands having gone the store in store model which has been the

most cost effective model in terms of testing the markets.

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APPAREL

India is well known as a competitive manufacturer of apparel. Many foreign

companies have been sourcing large quantities of garments regularly from India

for a number of years. But less well known is the fact that India has huge

potential as a market for foreign clothing, given its large population and

growing household incomes. A few significant foreign playerssuch as Levi

Strauss, Benetton and Lacostehave been selling their branded apparel in India

for a number of years. But most foreign companies have yet to enter the Indian

market.

Government FDI Policy

Government policy initiatives on FDI:a)Single brand retailing up to 51% subject to Govt. approval

b)Cash & carry wholesale trade 100 %on automatic route

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SWOT ANALYSIS

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MBO

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PACIFIC MALL FOOTWEAR

STORE FEEDBACK FORM

Name of the Store Lifestyle Rajouri Garden

Date and Time Visited 27th March 2011 1:00PM

Category Footwear

Space Management

Adidas

Ree

bok Fila

Pum

a Nike

Conv

erse

Tot

alArea Sq Ft 66 26 66 66 26 250

% Contribution 26% 0% 10% 26% 26% 10%

Running Sq Ft 3 5 3 11

% Contribution 27% 0% 0% 45% 27% 0%

No of SKUs 10 28 18 9 4

Footwear Wall Capacity 21 64 35 21 18 159

% Contribution 13% 0% 40% 22% 13% 11%

Summary

Business Potential

Avg Monthly Business 100000

2000

00

2700

00

1000

00

6000

0

730

000

% Contribution of Business 14% 0% 27% 37% 14% 8%

Rank in Terms of Business

(1-6) 3 2 1 3 4Any Particular Campaign, If

Yes, Mention with Details No No No No No

Summary Discontinuing with nike.

Business GAPS

Any Particular Campaign, If

Yes, Mention No No No No No

Potential Category Missing

Girls

footwea

r

No

Summary

Product Info

3 Top Sellers with Details

Avg MRP Footwear Sold 2500 2000 4000 2500 1099Min-Max MRP SKU Available. For 2299- 1299- 2799- 1975- 1099-

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Ex:1899-2699 3099 2999 5499 4500 1299


Higher

range

Slides Business

No of SKUs of Slides

Available 1 6 3

Slides Business PM 699

349-

799

399-

599

Slide Stand Available Yes Yes Yes

Summary

Other Info

Availability of Staff Yes/No No Yes Yes No No

POS Available Y/N Yes No Yes Yes No

ADIDAS

PUMA

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NIKE

CONVERSE

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FILA

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SLIDES

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PACIFIC MALL APPAREL

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Store Visit Feedback Sheet

Name of the Store Lifestyle Rajouri Garden

Date and Time Visited 27th March 2011 1:00PM

Category Apparel

Space Management

Adida

s

Ree

bok

Fi

la Puma Nike

Conv

erse

Tot

al

Area Sq Ft 64 64 64 192

% Contribution 33% 0%

0

% 33% 33% 0%



0

% 31% 31% 0%No of SKUs 10 12 16

Apparel Wall Capacity 60 60 60 180


0

% 33% 33% 0%

Summary

Business Potential

Avg Monthly Business

1500

00

2000

00

15000

0

500

000

% Contribution of Business 30% 0%

0

% 40% 30% 0%Rank in Terms of Business (1-6) 2 1 2Any Particular Campaign, If Yes,

Mention with Details No No

World

Cup

Summary Nike world cup cricket campaingn.

Business GAPS

Any Particular Campaign, If Yes,

Mention No No No

Potential Category Missing Girls Girls Girls

Summary

Product Info

3 Top Sellers with Details - - -

Avg MRP Apparel Sold 1000 1000 1000Min-Max MRP SKU Available. For

Ex:1899-2699

699-

1399

599-

1199

699-

1399


Colou

rs

- -

Other Info

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Availability of Staff Yes/No No Yes No

POS Available Y/N Yes Yes Yes

ADIDAS

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PUMA

NIKE

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NIKE

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LIFESTYLE PROMENADE FOOTWEAR


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Name of the Store Lifestyle Promenade

Date and Time Visited 22nd March 3:30PM

Category Footwear

Space Management

Adida

s

Ree

bok Fila Puma Nike

Conv

erse

To

tal

Running Sq Ft 5 4 3 1 13

% Contribution 38% 0% 31% 23% 8% 0%

Area Sq Ft 25 25 25 25 25

15

0

% Contribution 17% 0% 17% 17% 17% 17%

No of SKUs 18 17 14 5 2


% Contribution 28% 0% 26% 20% 7% 19%

Summary

Business Potential


4000

0 55000

95

00

0


Rank in Terms of Business (1-6) 2 1Any Particular Campaign, If

Yes, Mention with Details No No No No No No

Summary

Business GAPS


Yes, Mention No No No No

Potential Category Missing Girls Girls Girls GirlsAny Brand having extra-

ordinary effort to Improvise

Business - - - -

Summary Product Info


Avg MRP Footwear Sold 2500 2000 3000 2500 1299Min-Max MRP SKU Available.

For Ex:1899-2699

2199-

3099

1999-

3999

1999-

4999

2200-

4000

1099-

1299


Slides Business

No of SKUs of Slides Available 3 3 2 3

Slides Business PM - - - -Slide Stand Available Yes Yes Yes Yes

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Summary

Other Info

Availability of Staff Yes/No Yes Yes Yes Yes Yes

POS Available Y/N Yes Yes Yes Yes No

ADIDAS

PUMA

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NIKE

FILA

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SLIDES

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Lifestyle promenade apparel


Name of the Store Lifestyle Promenade

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Date and Time Visited 22nd March 2011 3:30PM

Category Apparel

Space Management

Adida

s

Kapp

a

Fi

la Puma

Ni

ke

com

mon

Tot

alArea Sq Ft 14 16 12 42


0

% 29%

0

%

Running Sq Ft 200 200 200 600


0

% 33%

0

% 0%

No of SKUs 8 19 13



0

% 33%

0

% 0%

Summary Nike jst had lowers

Business Potential


8000

0

1000

00

5000

0

230

000


0

% 22%

0

% 0%

Rank in Terms of Business (1-6) 2 1 3Any Particular Campaign, If Yes,

Mention with Details No No No

Summary

Business GAPS


Mention No No No

Potential Category Missing No No NoAny Brand having extra-ordinary

effort to Improvise Business

Good

VM

Summary

Product Info


Avg MRP Apparel Sold 749 500 599

Min-Max MRP SKU Available. For

Ex:1899-2699

749-

1249

599-

1400


Other Info

Availability of Staff Yes/No Yes Yes Yes


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ADIDAS

PUMA

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KAPPA

NIKE

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Lifestyle Noida Footwear


Name of the Store Lifestyle Noida

Date and Time Visited 21st March 2011 2;00PM

Category Footwear

Space Management

Adidas

Ree

bok Fila Puma Nike

Conv

erse

To

tal

Area Sq Ft 40 40 40 40 40

20

0

% Contribution 20% 0% 20% 20% 20% 20%

Running Sq Ft 3 5 4 4 4 20

% Contribution 15% 0% 25% 20% 20% 20%

No of SKUs 9 20 12 12 3

Footwear Wall Capacity 18 30 24 24 24

12

0

% Contribution 15% 0% 25% 20% 20% 20%

Summary

Business Potential

Avg Monthly Business 2L 0% Contribution of Business #VALU #DI #DIV/ #DIV/ #DIV/ #DIV/

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E! V/0! 0! 0! 0! 0!

Rank in Terms of Business (1-6) 3 1 2Any Particular Campaign, If

Yes, Mention with Details No No No No No

Summary

Business GAPS


Yes, Mention No No No No No


Lack

of

stockAny Brand having extra-

ordinary effort to ImproviseBusiness

Summary Adidas should fill in their stocks on time.

Product Info



For Ex:1899-2699

1799-

7699

1599-

3999

1999-

6000

1875-

3900

1099-

1999


Slides BusinessNo of SKUs of Slides Available 2 3 2 2 0

Slides Business PM

Slide Stand Available Yes Yes Yes Yes No

Summary

Other Info

Availability of Staff Yes/No No Yes Yes Yes No

POS Available Y/N Yes No Yes Yes Yes

ADIDAS AND PUMA

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NIKE

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Lifestyle Noida Apparel


Name of the Store Lifestlye NoidaDate and Time Visited 21st march 2011 2:00PM

Category Apparel

Space Management

Adida

s

Ree

bok

Fi

la

Pum

a Nike

com

mon

Tot

al

Running Sq Ft 12 10 12 12 46


0

% 22% 26% 26%

Area Sq Ft 66.6 66.6 66.6 200

% Contribution 33% 0%0% 33% 33% 0%

No of SKUs 17 20 23



0

% 33% 33% 0%

Summary

Business Potential


2400

00

210

000

18000

0

630

000


0

% 33% 29% 0%



Summary

Business GAPS


Mention No No

World

cup

Potential Category Missing Girls Girls Girls

Any Brand having extra-ordinary

effort to Improvise Business

Summary

Product Info



Ex:1899-2699

749-

1299

599-

995

795-

1199Potential Category Missing

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Other Info

Availability of Staff Yes/No No Yes Yes


ADIDAS

PUMA

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NIKE

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Planet Sports Ambience Apparel


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Name of the Store PLANET SPORTS AMBI

Date and Time Visited 25TH MARCH 2011

Category Apparel

Space Management

Adid

as

Ree

bok Fila

Pum

a Nike

Conv

erse

To

tal

Area Sq Ft 300 900 300

15

00

% Contribution 20% 0% 0% 60% 20% 0%


% Contribution 23% 0% 0% 45% 32% 0%

No of SKUs 19 41 26

Apparel Wall Capacity 60 120 80

26

0

% Contribution 23% 0% 0% 46% 31% 0%

Summary

Business Potential


% Contribution of Business

#DIV

/0!

#DI

V/0!

#DI

V/0!

#DIV

/0!

#DIV

/0!

#DIV/

0!



Summary

Business GAPS


Mention No No No


Lifest

yle - -Any Brand having extra-ordinary

effort to Improvise Business No No No




Ex:1899-2699

799-

2999

599-

2000

795-

2999


Other Info

Availability of Staff Yes/No Yes Yes YesPOS Available Y/N Yes Yes Yes

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PUMA

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MGF Lifestyle Footwear


Name of the Store MGF LIFESTYLE

Date and Time Visited 23rd March 2011

Category Footwear

Space Management

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Adid

as

Ree

bok Fila

Pum

a Nike

Conv

erse

Tot

al

Area Sq Ft 40 40 40 40 40 200

% Contribution 20% 0% 20% 20% 20% 20%

Running Sq Ft 5 6 4 4 3 22

% Contribution 23% 0% 27% 18% 18% 14%No of SKUs 16 21 13 14 5


% Contribution 23% 0% 27% 18% 18% 14%

Summary

Business Potential


3500

00

3500

00

3200

00

3000

00

2000

00

152

000

0


Rank in Terms of Business (1-6) 1 1 2 3 4Any Particular Campaign, If Yes,

Mention with Details No No No No No

Summary

Business GAPS


Mention No No No No No


Any Brand having extra-


Business

Summary

Product Info



For Ex:1899-2699

999-

7600

1799-

2499

2999-

5499

2200-

3995

1099-

1399


Slides Business

No of SKUs of Slides Available 6 8 2 3 -

Slides Business PM

Slide Stand Available Yes Yes Yes Yes

Summary

Other Info

Availability of Staff Yes/No Yes No Yes Yes Yes

POS Available Y/N Yes Yes Yes Yes Yes

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ADIDAS

PUMA

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NIKE

CONVERSE

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FILA

MGF Lifestyle Apparel


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Name of the Store MGF LIFESTYLE


Category Apparel

Space Management

Adi

das

Ree

bok

Fi

la

Pum

a Nike

Conv

erse

Tot

al

Area Sq Ft 64 64 64 192


0

% 33% 33% 0%



0

% 36% 29% 0%

No of SKUs 11 16 13



0

% 35% 30% 0%

Summary

Business Potential


300

000

2500

00

10000

0

650

000


0

% 38% 15% 0%



Summary

Business GAPS


Mention No No No

Potential Category Missing Girls Girls GirlsAny Brand having extra-ordinary

effort to Improvise Business - - -




Ex:1899-2699

749-

999

599-

1199

999-

1500

Potential Category Missing - -

Lower

range

Other Info

Availability of Staff Yes/No Yes Yes Yes

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ADIDAS

PUMA

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Central Footwear


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Name of the Store CENTRAL


Category Footwear

Space Management

Adida

s

Reeb

ok Fila

Pum

a Nike

Conv

erse

To

tal

Area Sq Ft 200 150 150 200 150 150

10

00

% Contribution 20% 15% 15% 20% 15% 15%

Running Sq Ft 12 14 6 8 12 12 64

% Contribution 19% 22% 9% 13% 19% 19%

No of SKUs 12 27 13 14 23 6


37

6

% Contribution 19% 24% 13% 15% 19% 11%

Summary

Business Potential



#DIV/

0!

#DIV/

0!

#DIV/

0!

#DIV/

0!

#DIV/

0!

#DIV/

0!

Rank in Terms of Business (1-6) 2 1 3 2 2 4Any Particular Campaign, If

Yes, Mention with Details No No No No No No

Summary

Business GAPS


Yes, Mention No No No No No No

Potential Category Missing Any Brand having extra-


Business No No No No No No

Summary

Product Info


Reezi

g

Avg MRP Footwear Sold 3500 6000 2000 3500 3000 2000

Min-Max MRP SKU Available.

For Ex:1899-2699

2199-

5799

1299-

7999

1799-

2899

2999-

5299

1975-

3995

1099-

2699


High

Range

Slides Business

No of SKUs of Slides Available - - - - - 4

Slides Business PM

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Slide Stand Available Yes

Summary

Other Info

Availability of Staff Yes/No No yes No Yes Yes No

POS Available Y/N Yes Yes Yes Yes Yes Yes

ADIDAS

PUMA

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REEBOK

NIKE

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CONVERSE

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Central Apparel


Name of the Store CENTRALDate and Time Visited 23RD MARCH 2011

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Category Apparel

Space Management

Adida

s

Ree

bok Fila

Pum

a Nike

Conv

erse

To

tal

Area Sq Ft 400 300 400 200 3001600

% Contribution 25% 19% 0% 25% 13% 19%

Running Sq Ft 22 8 8 18 12 68

% Contribution 32% 12% 0% 12% 26% 18%

No of SKUs 17 16 23 20 18

Apparel Wall Capacity 70 30 40 60 60

26

0

% Contribution 27% 12% 0% 15% 23% 23%

Summary

Business Potential



#DIV/

0!

#DIV

/0!

#DI

V/0!

#DIV

/0!

#DIV

/0!

#DIV

/0!

Rank in Terms of Business (1-6) 3 4 1 2 5Any Particular Campaign, If Yes,

Mention with Details No No No No No

Summary

Business GAPS


Mention No No No No No


High

RangeAny Brand having extra-ordinary

effort to Improvise Business No No No No No

Summary

Product Info

3 Top Sellers with Details Avg MRP Apparel Sold 700 1000 1200 850 499Min-Max MRP SKU Available. For

Ex:1899-2699

599-

999

499-

1399

599-

1299

645-

1095

499-

649


Other Info

Availability of Staff Yes/No No Yes Yes Yes No

POS Available Y/N Yes Yes Yes Yes Yes

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ADIDAS

NIKE

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CONVERSE

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Page 62


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Encourage team building activities so

that people work well together.

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Conclusions

In this period of 8 weeks it was a 2 way learning.

I gained experience of working in a multinational

company and learnt about the Indian retail market.

The marketing strategy of adidas in an exclusive

store varies from that in a mutlibrand outlet and i

got an understanding of it. In the above report its

seen the common problem is there is no stock for

girls, less skus compared to other brands

compared to the area square feet, there is no

adidas sales staff the MBOs.

Based on my understanding i built a business

improvising strategy and possible ways to increase

the sell thru of the products.

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Bibliography

www.adidas.com

www.google.com

www.wikipedia.com

www.puma.com

www.nike.com

www.reebok.com

BOOK

Indian Retail by Vikram Kapoor
http://www.adidas.com/http://www.google.com/http://www.wikipedia.com/http://www.puma.com/http://www.nike.com/http://www.reebok.com/http://www.adidas.com/http://www.google.com/http://www.wikipedia.com/http://www.puma.com/http://www.nike.com/http://www.reebok.com/

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Adidas Word

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