• Nabduan D. ID:5520212002
• Omar N. ID:5520212005
• Raveepitchaya R. ID:5520212007
• Chulaluck C. ID:5520212008 1
• Adidas is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world.
• A German multinational corporation that designs and manufactures sports clothing and accessories.
• Founded: August 18, 1949
• Headquarters: Bavaria, Germany
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FOUNDER
• Adolf "Adi" Dassler
• His brother Rudolf returned to Herzogenaurach to join his younger brother's business
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MISSION
• The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.
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VISION• The company is innovation and design leaders who seek to help athletes of all skill
levels achieve peak performance with every product we bring to market.• The company are consumer focused and therefore we continuously improve the
quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.
• The company are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.
• The company are dedicated to consistently delivering outstanding financial results.
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CORE VALUE• Performance
Sport is the foundation for all we do and executional excellence.• Passion
Passion is at the heart of our company and continuously moving forward, innovating, and improving.
• IntegrityThe company are honest, open, ethical, and fair. People trust us to adhere to our word.
• DiversityThe company takes people with different ideas, strengths, interests, and cultural backgrounds to make our company succeed. We encourage healthy debate and differences of opinion.
BRAND VALUE• Authentic• Passionate• Innovation• Inspirational• Committed• Honest
BRAND ATTITUDEImpossible is Nothing
KEY MARKETS• North America • Russia• Greater China
KEY STRATEGIC PILLARS• Gaining sales and market share with key
growth categories such as Running and Basketball within Adidas Sport Performance.
• Expanding Adidas Sport Style in the fast-fashion business.
• Maintaining adidas Originals’ strong momentum to serve the needs of the fashion-driven lifestyle consumer.
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STRENGTH• Financial strength• Effective marketing strategy, distribution mix,
diverse brand portfolio and Supply Chain Management and Innovations
• Brand Value• The company has worldwide presence and is
internationally recognized.
WEAKNESS• High dependency of raw material prices• Low margin • Poor share price in U.S. Market• Customers have high brand switching
OPPORTUNITIES• Investments focused on highest potential
markets and channels• Technological innovations • Tie-up with emerging sports
teams/clubs/players internationally• Brand building by setting up sports academies
THREATHS• Price fluctuation in raw materials• Unstable currencies exchange• Other brands offer more styles and
varieties• Pirated/fake imitations affect brand
image
Market Segmentation
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GEOGRAPHIC SEGMENTATION: Divided the market into different units of location • Neighborhood, • States, cities • Regions, countries• Adidas Bold 2009 have operated in urban and
semi-urban cities of India.DEMOGRAPHIC SEGMENTATION: Divided into different segments based on the variables of family size, family life cycle, income, gender, age and etc. As follows:
• Age 15-36• Income level: $15,000• Social Class: Upper middle, upper class and
lower upper.• Gender: Both male and female
PSYCHOGRAPHIC SEGMENTATION: Divided different personalities of each consumersand only key is to be different.• Achievers• Well-experienced• Hard workers• Goal achievers
BEHAVIORAL SEGMENTATION: Divided the consumers according to their attitude, knowledge, response and use of the product. Below are the behavioral segmentation for adidas:• Benefits• Gym regular users• Sports lovers• Athletes• Image seekers• Brand freaks
Target Markets
• Sports personalities involved in various sporting activities such as soccer, rugby, athletics and basketball.
• Young people
• Male and Female
• Ages between of 10 to 30
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Product Positioning
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adidas• The brand strive to be the
globally leading and most popular sporting goods brand
• Focus is on innovation and technology
adidas Originals• The first brand leveraging its
sports assets in the lifestyle area
• Regarded as a legitimate sports lifestyle brand.
adidas Sport Style• "Future of Sportswear" • Includes the labels Y-3• Porsche Design Sport
adidas NEO, From the track to the catwalk, it helps you to "Style your Life"
4Ps
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Products Providing high quality products aimed at
providing the best value to the costumer.
The products portfolio is continuously enhanced through creations and innovations throughout the companies various categories. This is pursued in order to cater to the various needs and wants of consumers worldwide.
Well-known brands for sports apparels, equipment and accessories, the Adidas group has a diverse brand portfolio consists of: Adidas , Reebok , TaylorMadeAdidas Golf , Rockport, CCMHockey
4Ps
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Price Using adapted pricing strategies,
depending on which market they are operating in, so as to achieve its goals.
Penetrating attack markets with lower prices or using market skimming tactics, for instance.
In intense competition in the global market, the company is involved in regular evaluation of its price to ensure that the products stay competitive at the point of sale.
4Ps
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Place Distribute its products to the consumer
with a strong focus on controlled space, including: Own-retail business, e-commerce, Shop-in-Shop, Joint ventures with retail partners, mono-branded franchise stores, co-branded stores with sports organizations and other brands. Hence, a high level of brand control is provided.
In addition, an “integrated distribution roadmap” has been set up to ensure further growth and to increase brand presence in under-penetrated, affluent cities, without cannibalizing their own brands and distribution mix.
4Ps
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Promotion Different promotional tools are used in
order to reduce the number of lost customers and to increase sales.
The group has set up an unparalleled portfolio of promotion partnerships with international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL).
Commercials, ads, apps for smartphones, product placement, sponsorships for athletes and sport events (e.g. Berlin Marathon 2011)
Strategies
Creating shareholder value
Investments focused on highest-potential markets and channels
Creating a flexible supply chain
Leading through innovation
Develop a team grounded in company heritage
Becoming a sustainable company
Brand’s Broad and Unique Product Portfolio
Brand Extension Strategies
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Adidas Core Competencies – Technology– Customer focus– Brand recognition– Supply chain– Collaboratively competitive
Why Adidas is number two ?
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• Nike has an overall better selection of gym shoes, and basketball shoes compare to than Adidas.
• Nike have wider variation of types of shoes which ranges anywhere from boots, to basketball shoes.
• Nike also are endorsed by higher profile athletes than Adidas does. • Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin
Garnett, who is passed his prime. • Nike's shoes are also more stylish, and well known.• Nike have higher modification function for customers on design and technology
How to improve to rank no.1 in this market?
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• Adidas should improve its product lines substantially as variation in products could lead to better and improved sales which form a major objective of any business organization.
• Adidas should concern more on innovation along with strategic partnership, Now, Adidas signed a contract with Samsung to produce a shoe + phone promotional campaign. In this strategic partnership, both the companies developed a phone to be used with shoes during training
• Improve brand association of professionals with Adidas is that it has a culture of technology and has a history of achieving a strong position in the minds of target customers.
• Adidas should work towards improving market share and being at par with Nike which is currently the world leader in Athletic footwear. Adidas should focus on roping in more celebrities to promote their products
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2012 2013 2014
Return on Equity(NI/Equity) 12% 12% 12% Measures profitability a company is for the owner of the investment, profitably a company employs its equity. - Accounting, Finance, Management
Net income attributable to shareholders
as a percentage of net sales
Earning per share increased 10%-15% 12%-16% 14%-18% Indicator of the profitability of the company - Accounting, Finance, Management
Operating Margin 8% 9% 10% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing - Accounting, Production, Management
Operating Expenses 40% 40% 40% From using ABC costing,ABM,EmployeeLeadershipProgram 2,500M Accounting, Management
Net borrowing/EBITDA below 2 below 2 below 2 Strong balance sheet increased flexibility to the best interest of sharesholders - Accounting, Finance, Management
Revenue increased 11% 11% 12% From using ABC costing,ABM,BetterSupplyChainProcess,Sales,Marketing,OnlineRetailer 1,500M Accounting, Management,Sales,CustomerService,R&D
Gross Margin 47.50% 48.0%-48.5% 49.00% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing 2,000M Accounting, Management,Production,Purchasing
Increase Share Value Share Price increased above standard 10% 12% 15% Better performance of the company - Accounting, Finance, Management
New customers % increase new customers through registration 10% 15% 20% Promotions/ Advertisment/ Marketing/ New products 200M Marketing, R&D
Customer retention % repeated sales through database 72% 75% 78% Promotions/ Advertisment/New products, good quality,reasonable price 100M R&D, Marketing, Sales Department
Customer satisfaction% repeated sales through database and
surverys95% 95% 95% Value customer project/ Surveys 25-50M HR, Sales Department
Increase demand% increase sales: both new customers and old
customers60% 40% 60% Advertisment/ Marketing, more outlets/ New products 200M R&D, marketing
Reduce standard lead times for footwear and apparel Standard lead times 60 days < 60 days < 60 days
Manufacturing flow mangement process/ Customer service management/ Warehousing management/ Physical
distribution/Increase proximity to sourcing countries 2,000M
Production manager, logistics, customer service, regional
manager
Product development, creation & innovation
1. Increased number of new ideas % increase in R&D expenses 12% 13% 14%
2. Improved quality of ideas No. of successful product launch 17 19 21
Create leadership excellence % global engagement survey 80% 83% 86% Leadership excellence programme / Best-in-class tools 2,300 Senior management
Enabling employee to reach their personal best Annual training hours by employee (in hours) 18 19 20 Targeted development programmes 1,200 All management levels
Employee satisfaction Turn over rate 1% 1% 0%Rewards programme / Global Salary Management System / Bonus programme, Profit participation programme, Long-term
incentive programmes, Champion Bonus 1,900 HR Department
Creating an attractive work environment Average length of service (in years) 5 6 7 Work-life Integration Programme 700 HR Department
Continuing to be the employer of choice Retaining of Top talent employees Recruitment activities / Employee referral Programme 850 HR Department
Number or new system support 2 3 6 Learning Management System / Ask the Management / e-Learning 700 HR Department
Number of employees 42,541 46,824 46,306 Recriutment process N/A HR Department
Reorganization of culture % product defection 25% 20% 15% Internal Training Programmes / Employee engagement surveys 2,300 Production and HR Department
Increase the propotion of women in management % Management position 28% 32% 35% Mixed leadership team / Work-life integration /Gender balance 2,300 HR Department
7,118MReduce product and supply chain cost Production manager, plant manager
N/A
Creating long-term value 20%-40% 20%-40%
Sustainable company
Revenue growth
% change in cost of sales 11.30% -7.00% -10%
Production creation system/Quality control management 130M Research & Develop manager/ Quality control manager
Cycle process system/ Supply chain and inventory management
Customers
Perspective
Champion
Learn & Growth
Perspective
TargetsPerspectives Objectives Measurements Programs Budget (€)
Online communication platforms to drive employee engagement and learning
Internal Process
Perspective
20%-40% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing 2,600M-5,200M Accounting, Finance, Management
Financial
Perspective
Balance Scorecard
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34Financial Perspective
Customer Perspective
Internal Process Perspective
Learning and Growth Perspective