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ACKNOWLEDGEMENT
I would like to render my heartfelt thanks to ACCURATE INSTITUTE OFADVANCED
MANAGEMNET for providing me with this wonderful opportunity to work on this project;
which I am sure will add to my pool of knowledge.
Also, I would like to thank my faculty guide Miss.Preeti Rajanfor his unwavering help andsupport throughout this project.
Saurabhendr Km. Sharma
ROLL NO- 1168670148
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DDAATTAA AANNAALLYYSSIISS .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3388
SSWWOOTT AANNAALLYYSSIISS OOFF AADDIIDDAASS .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5500
RREECCOOMMMMEENNDDAATTIIOONNSS && CCOONNCCLLUUSSIIOONN .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5522
TTHHEE FFUUTTUURREE .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5533
AANNNNEEXXUURREE .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5544
QQUUEESSTTIIOONNNNAAIIRREE .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5544
BBIIBBLLIIOOGGRRAAPPHHYY .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5577
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INTRODUCTIONIn the small German village of Herzogenaurach the world began its love affair with Adidas
(Rynos Company History). In 1920, Adolf Adi Dassler brought to life those three little
stripes. With his brother, Rudolph, Dassler manufactured his first sports shoe, made for training,
after realizing the need for performance athletic shoes. In1948, the Dassler brothers separated to
form their own two separate companies. Dassler formed Adidas and his brother formed Puma,
both headquarters in Herzogenaurach.
The Adidas mission has changed little since founder Adi Dassler began making sports shoes in
the 1920s: to be the best sports brand in the world. The history of Adidas is one of consistently
meeting the evolving needs of the athlete. Focusing more on function and less on fashion, Adidas
strives to provide athletes with shoes that can make a noticeable difference in their performance.
Meeting athlete needs is what makes Adidas the best. Adidas America has continued to build on
this history.
In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing company
founded by former Nike executives Rob Strasser and Peter Moore. Sports Inc. had been working
in conjunction with Adidas USA on the design, development, and marketing of the Adidas
Equipment line. This line helped rejuvenate and reposition the Adidas brand in the United States
by creating an exclusive line focused on fulfilling the functional needs of the athlete and by
utilizing the best materials and athlete input in the tradition of Adi Dassler. It offered moisture
management, thermal insulation, weather protection, ease of movement, and safety, helping the
athlete to perform more efficiently. After the successful creation and launch of Adidas America
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General Information
For over 80 years Adidas has been part of the India of sports on every level, delivering state-of-
the-art sports footwear, apparel and accessories. Today, with total net sales of 6.1 billion and net
income of 208 million, Adidas - Salomon is a global leader in the sporting goods industry and
offers the broadest portfolio of products. Adidas-Salomon products are available in virtually
every country of the world. Their strategy is simple: continuously strengthen our brands and
products to improve our competitive position and financial performance.
The company's share of the world market for sporting goods is estimated at around 15 percent.
Activities of the company and its approximately 100 subsidiaries are directed from Adidas-
Salomon AG's headquarters in Herzogenaurach, Germany. Also located in Herzogenaurach are
the strategic business units for Running, Soccer and Tennis as well as the Research and
Development Center. Additional key corporate units are based in Portland, Oregon in the USA,
the domicile of Adidas America Inc. and home to the strategic business units Basketball,Adventure and Alternative Sports. The strategic business unit Golf is based in California. The
business unit Winter Sports is in Annecy, France. The company also operates design studios and
development departments at other locations around the world, corresponding to the related
business activity. Adidas-Salomon AG has approximately 13,400 employees worldwide.
Turnover and Brand Image
http://images.google.co.in/imgres?imgurl=http://img.classiccloseouts.com/images_104/attributes_m/2BQ00900.jpg&imgrefurl=http://www.shoppingsuzy.com/Fashion/adidas-shoes.htm&h=345&w=250&sz=31&tbnid=de0y6StB_VQJ:&tbnh=116&tbnw=84&hl=en&start=3&prhttp://images.google.co.in/imgres?imgurl=http://www.theprosstuff.com/shoes/kb_adidas%20shoes%20big.JPG&imgrefurl=http://www.theprosstuff.com/shoes.htm&h=1473&w=1629&sz=743&tbnid=0B96h9lwVfIJ:&tbnh=135&tbnw=150&hl=en&start=5&prev=/images?qhttp://images.google.co.in/imgres?imgurl=http://img.classiccloseouts.com/images_104/attributes_m/2BQ00900.jpg&imgrefurl=http://www.shoppingsuzy.com/Fashion/adidas-shoes.htm&h=345&w=250&sz=31&tbnid=de0y6StB_VQJ:&tbnh=116&tbnw=84&hl=en&start=3&prhttp://images.google.co.in/imgres?imgurl=http://www.theprosstuff.com/shoes/kb_adidas%20shoes%20big.JPG&imgrefurl=http://www.theprosstuff.com/shoes.htm&h=1473&w=1629&sz=743&tbnid=0B96h9lwVfIJ:&tbnh=135&tbnw=150&hl=en&start=5&prev=/images?q7/30/2019 Saurabh Report
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Almost 53% of the turnover is from sale of apparel and accessories with the rest from footwear.
The Adidas brand is one of the most popular brands as determined by a within brand survey of
sportswear brands in the year 2008.
The Company
Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called
Adidas India Ltd. and announced its joint venture with Magnum International Trading Company
Ltd. on October 1, 1996. The new joint ventureAdidas India Ltd.was incorporated with an
initial investment of Rs. 8000 million with Adidas India Ltd. holding 80% of the equity and
Magnum holding the balance 20%. This investment was raised to Rs 475 million with the equity
structure remaining the same. Currently, the total investment stands at Rs. 500 Million with the
equity structure changing to 91.4% by Adidas and 8.6% by magnum.
Adidas Range of Products in India
A month after announcing the joint venture, Adidas India Ltd. launched its range of sports
footwear, apparel and accessories in New Delhi on November 1, 1996. Subsequently, Adidas
products were also launched in Mumbai, Bangalore, Chennai, Hyderabad and Calcutta.
Currently, Adidas products are available in 30 cities in India.
The range of Adidas products available in India include sports footwear featuring some of the
most popular innovations and technologies developed by Adidas such as Feet You Wear, Torsion
system and adi wear. The sports footwear available in India includes a wide range of core
categories such as adventure, basketball cricket, golf, indoor, running, tennis, training, soccer
and workout.
Adidas has introduced in India, a wide range of sports wear for both men and women. These
include apparel for athletics, basketball, cricket, golf, running, soccer, swimming, tennis and
training for Men. The womens range includes apparel for athletics, golf, running, swimming,
tennis, training and workout. Accessories include bag packs, campus bags, medium and large kit
bags, caps, socks, wrist and headbands. Adidas Markets its products in India through a
combination of mega exclusive stores (area of 1000 sq. feet and above), exclusive stores, multi-
brand stores and distributors. At present, Adidas is available in 75 exclusive outlets out of which
34 are company owned with 8 new Company owned stores planned for 2006 and in 450
multi-brand outlets in India.
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History of the Company
The Timeline of the Company
1948 -The Dassler and his brother Rudolph and Adolph, separate and two companies. Adi Dassler
forms Adidas-a combination of his nickname, Adi, and the first three letters of his last name a lowercase
a is adopted to further distinguish Adidas. He commences production with 47 employees. Rudolph
forms Puma, with its headquarters located across town from Adidas in Herzogenaurach.
1949- Adidas adopts the trademark three-stripes.
1955-The first license is given to a factory in India to manufacture Adidas shoes.
1972 -Adidas introduces the Trefoil logo.
1984-Kathe Dassler dies, leaving the company to Horst, the Dasslers first-born.
1987-Horst dies at the age of 51.
1987-Ron More is brought in from Adidas Canada to run operations and a new facility is
acquired in Warren, New Jersey.
1988-Adidas is incorporated.
1989 -Rob Strasser and Peter Moore of Sports Incorporated present Adidas with the Equipment
concept. The footwear and apparel line is introduced in 1991.
1990-Bernard Taupie purchases 80% of Adidas stock.
1993-A group of investors led by Robert Louis-Dreyfus, former head of the British advertising group
Saatchi & Saatchi P.L.C., acquires control of Adidas. Adidas America is formed in February; Rob
Strasser is appointed CEO and Peterr Moore becomes Worldwide Creative Director. Rob Strasser dies on
October 30. Peter Moore is named CEO of Adidas America n November 9, while maintaining his role as
Worldwide Creative Director.
1994-Adidas moves from eighth to third position in Indian Footwear Industry Rankings. Indian
Footwear and apparel sales increase by an estimated 75%.
1995-Adidas goes public on the stock exchange in Frankrurt.
1997-Performance Logo becomes the worldwide Adidas logo.The acquisition of Salomon
broadens the Adidas product range to include Taylor Made for golf products and Mavic for cycle
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components. Adidas achieves record sales and passes the 1 billion dollar mark in gross sales in
the India.
2000-Adidas proudly celebrates the 100th birthday of our founder, Adi Dassler
2005.-Sale of SalomonThe Salomon Group (including Salomon, Mavic, Bonfire, Clich and
ArcTeryx) is being sold to Amer Sports in October 2005. The new Adidas Group is focusing
even more on its core strength in the athletic footwear and apparel market as well as the growing
golf category. The legal name of the company will change to Adidas AG in May/June 2006.
2006-Adidas-Salomon AG acquires Reebok
The closing of the Reebok transaction on January 31, 2006 marks a new chapter in the history of
the Adidas Group. By combining two of the most respected and well-known brands in the
worldwide sporting goods industry, the new Group will benefit from a more competitive
worldwide platform, well-defined and complementary brand identities, a wider range of
products, and a stronger presence across teams, athletes, events and leagues.
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LITERATURE REVIEWBrands
Brands were originally developed as labels of ownership: name, term, design, symbol. However,
in present world it is what they do for the people that matters much more, how they project and
engage them, how they define their aspiration and enable them to do more. Powerful brands can
determine success in competitive and financial markets, and undoubtedly become the
organization's most valuable assets. Kotler
April 2, 1993, labeled Marlboro Friday, is described by Klein (2000) as the death day of the
brand.On that day, Phillip Morris declared that there will be a 20 per cent price cut of Marlboro
cigarettes in order to compete with cheaper price cigarettes. At the time, Marlboro cigarettes
were known to be notorious for their heavy advertising campaigns, and nuanced brand image. On
that day, the prices of many branded companies Wall street stocks fell: Heinz, Coca Cola,
Quaker Oats, PepsiCo; seemingly the signal of the beginning 'brand blindness'(Klein 13).
Concepts
A brand which is commonly known in the marketplace acquires brand recognition. When brand
recognition builds up to a level where a brand celebrates with a critical mass of positive
sentiment in the marketplace, it is said to have achieved brand franchise. The identification of a
brand without the name of the company being present is one of the goal of brand recognition. For
example, Disney has been very successful at branding with their distinct particular script font
(originally created for Walt Disney's "signature" logo),
Building a Brand
With appropriate senior management commitment, building a relevant and powerful brand for
any consumer-focused company, including a bank, is a reasonable goal. The overall objective is
to change customer behavior, improve business economics, gain competitive advantage and
provide a clear mandate for employees. But this objective means that branding a company and its
products must be more business science than marketing art. Based on extensive study and
work with clients, BoozAllen believes there are four components to successfully branding a
company. These steps blueprint the process of developing a concise message or promise that an
institution wants to communicate to its customers, and for executing a strategy that delivers on
that promise.
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The first step in building a branded business is to understand the role of the brand in that
particular business, including the leverage it can provide across markets and product categories.
A brand can provide information and communicate efficiently, qualify a product or service, or
establish differentiation. A truly powerful brand can do all three if necessary. To decide what
role brands should play, it is important to take a dispassionate look at the current status of the
organization and product/service offeringhow they are perceived by customers, competitors
and employees. In addition, the institution has to understand what these distinct constituencies
need to know and believe about the brand.
Secondly, brand builders must choose brand architecture consistent with the chosen role, the
institutions products, services and market landscape. There are three types of brand
architectures: a single brandone brand that covers the entire product range; tiered brands, witha parent brand supported by sub-brands for each product line; or multiple brands, with each
product carrying its own brand distinct from the parent. Sony, Home Depot and Visa are
examples of a single brand architecture.
The third step in branding a business and developing a brand strategy is to position the brand to
effectively communicate the value proposition. Critical here is clarity, consistency and relevance.
Volvo (safety), Nike (limitless performance) and Wal-Mart (good deals) are examples of
companies that have clear brand positions. The clarity is achieved through the consistent use ofall marketing levers (e.g. price, product design, image and channel selection) to drive home a
single message.
In the fourth step, a company must develop the programs needed to deliver the brand and the
brand promise. This happens through programs or services that convey the brand message to the
target audience. Nikes support of grassroots athletic events and Visas Olympic sponsorship
illustrate the type of programs needed to creatively deploy brands. Nike helps amateur athletes
perform, while Visa demonstrates its global reach.
Competitive advantage
Competitive advantage (CA) is a position that a firm occupies in its competitive landscape.
Michael Porter says that a competitive advantage, whether sustainable or not, exists when an
organization makes economic rents, that is, their earnings exceed their costs (including cost of
capital). That shows that normal competitive forces and pressures are not able to drive down the
firm's earnings to the point where they cover all costs and just provide minimum sufficientadditional return to keep capital invested. Most kinds of competitive advantages cannot be
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maintained for any length of time because the call of economic rents drives competitors to
duplicate the competitive advantage held by any one firm.Analysis of the factors of profitability
is the subject of numerous theories of strategy including the five forces model pioneered by
Michael Porter of the Harvard Business School.
In 2006, Jaynie L. Smith authored Creating Competitive Advantage (Doubleday). This book
outlines how companies fail to understand their own existing competitive advantages and use
them in sales/marketing. She provides a framework for how companies can evaluate their own
operations and develop competitive advantage/competitive positioning statements to better hone
their sales/marketing messages. Competitive advantage statements help distinguish companies by
highlighting what they offer to the customer using tangible terms and concepts. The next step is
to test those CA statements through independent market research. This allows a company tounderstand their customers' hierarchy of buying criteria in an objective indepenedent context.
From there, companies can tailor their CA statements to speak directly to the buying interests of
the customer.
Adidas
By-Vivian Manning-Schaffel
When adidas entered the marketplace some 50 years ago, its focus was to produce shoes crafted
specifically for soccer and running. Establishing the brand as the choice for professional athletes
eventually parlayed into preference in the mainstream.
In the 80's, Run DMC furthered adidass street cred with the rap My adidas, paying homage to
their favorite shell-toe. But by the early 90's, Nike and Reebok were out-marketing adidaseven
in Germany, its own turf. Kids werent interested in the sneakers their parents wore, and adidas
found itself forgotten in the back of the closet, heading for the Goodwill
The new millennium has since brought about an adidas renaissance; the brand has steadily
regained market share over the past five years to become the world's number two athletic shoe
company (behind Nike). How did it go about repositioning to once again be among the coolest of
kicks?
Adidas claims that, "the brand values of the company authenticity, inspiration, honesty and
commitment are derived from sport." Historically, this sensibility was demonstrated through
early and continued involvement with Olympic athletes, as well as active sponsorship of majorglobal sporting eventslike the World Cup. Today these events provide an ample playing field
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for sportswear companies to duke it out for representation and thus market share. Adidass rapid
growth in Asia, where revenue rose by 15 percent to US$ 878M last year, may be further
propelled in Japan and Korea when those two nations host the World Cup this yearan event
which is expected to garner 2.5M spectators and one billion TV viewers worldwide.
However, the key to revitalized success seems to lie in the considerable endorsement deals
adidas has developed with world class athletes. Recent sports figures representing adidas dont
only score high marks in their game they also score high in their celebrity quotient. British
football star David Beckhams relationship with adidas has no doubt lent itself well to the
brands visibility in the UK. Recently dubbed "Captain of England," Beckham led his team to
victory in the 2000 FIFA World Cup. It doesnt hurt that hes married to a highly visible, ex -
Spice girl and is often seen in the tabloids sporting the adidas logo. With Europe as adidass
largest market, exposure like this reflects in the numbers; sales grew seven percent to US$ 2.7
billion, last year.
Stateside, Kobe Bryant is another example of a winning adidas endorsee. The LA Laker and
youngest NBA all-star player is an athlete with substantial celebrity leverage. This translates
directly into sales, young men who idolize Bryant want to play basketball like he does, and thus
will want to wear what he wears. The equally compelling Russian born, American-bred tennis
star Anna Kournikova also meets these criteria. Shes a young, brilliant professional athlete
whose celebrity extends well beyond the world of tennis like Bryant and Beckham shes
captured the publics interest in mainstream newspapers, magazines and tabloids.
Reinvention was key, not only for the adidass marketing strategy, but also for its product line.
On its website, adidas acknowledges that "The markets and industry in which we compete are
transforming rapidly, paced by the evolution or revolutionin how 'sports' are defined. Team
sports such as soccer and basketball will always be a fundamental part of sporting competition.
Today, however, eclectic, individual, 'no-rules' sports such as snowboarding, inline skating and
surfing have grown into significant categories. Activities such as golf, hiking and mountain
biking, which used to be seen as lifestyle and leisure activities, are now part of mainstream
sports." Increased product offerings in these categories have undoubtedly contributed to a better
score for the brand.
To keep up with the competition, adidas generates close to 60 new foot-friendly designs each
year. The adidas credo is to regard shoes as feet, resulting in a product with superior fit and
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performance capabilities. Tactics have been revised in getting these products out for
consumption. As a result, products have been repositioned in higher-end and sports specialty
stores. As their main competitor has sprinkled flagship NikeTown stores throughout the US,
Europe and Australia, adidas has also embarked on a foray into retail. The first adidas-Solomon
megastore launched in Paris last year to capitalize on the brand awareness in that market; France
scored victories in both the 1998 World Cup and 2000 European Cup football championships.
Word on the street is the brand hopes to eventually roll out this concept to more cities in Europe
and North America.
Adidas continues to prove itself as a brand built to last through a game plan of reinvention. With
the recent acquisition of a lifetime partnership with Orlando Magic's Tracy McGrady (basketball)
and its heavy involvement with 2002 World Cup, it continues to strike savvy deals that capitalize
on the star power of young athletes and increase its visibility in the marketplace.
It appears that team adidas has honed its strategy to become a revitalized contender in todays
competitive sporting goods market and is now duly recognized as the sneaker of yesterday and
today1
Punchy New Ads from Adidas
Section: UP Front
BRANDING BATTLES
Tired of being the perennial also-ran to Nike, Adidas-Salomon plans to pump more than $50
million into an ambitious new ad campaign. On Feb. 5, Adidas will kick off a series of TV, print,
and Internet ads featuring Muhammad Ali and his daughter, boxer Laila Ali, BusinessWeek has
learned. Adidas even has a new, Nike-like theme: ``Impossible is Nothing.''
Some ads will include star Adidas athletes with Ali or in their own spots. Others will highlight
nontraditional sports such as skateboarding and athletes overcoming physical handicaps. ``The
challenge for Adidas is daunting,'' says Jeffrey Bliss, president of sports marketers Javelin
Group. ``They have to overcome their own previous marketing missteps and then take on Nike,
which is showing no sign of stumbling.''
The ads are part of Adidas' efforts to reenergize its business in North America. It wants to nearly
double its U.S. market share, to 20%. Despite strong sales of its new Tracy McGrady basketball
1. http://www.brandchannel.com/features_profile.asp?pr_id=71
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sneaker, total North American sales have dropped 16% in the first nine months of 2003. With
Nike controlling 41% of the U.S. footwear market, Adidas execs will need to believe their own
advertising.
The McGraw-Hill Companies, Copyright
photo (black & white): family affair: The campaign will feature Ali and his
daughter, Laila
~~~~~~~~
By Stanley Holmes
Edited By Ira Sager
Adidas Leaps from Hot Sneakers to Warm Jackets
Section: Innovation & Design
Design
The sporting-goods maker aims to climb Alpine heights with a new performance-sports line
Dateline: [Bloomberg)
Adidas has long been one of the world's premier brands in fashion sport shoes. Now the German
sporting-goods company plans to begin selling high-end mountaineering jackets next year,
muscling in on North Face's turf as outdoor gear grows faster than traditional sporting goods.
Adidas is setting a lofty goal for itself, too. It wants to become a leading brand for so-called
performance-sports gear by 2015, says Rolf Reinschmidt, head of the global outdoor division.
Sales of outdoor gear will rise about 0.7% in Europe this year, outperforming the declining
sporting-goods market, according to industry body European Outdoor Group. The fragmented
nature of the market makes it attractive for adidas. North Face owner VF leads the $59 billion
industry with outdoor-sports sales of $2.74 billion, the association says.
"Adidas is still far behind the specialist labels, but it's coming up," says Andreas Bartmann, chief
executive of Globetrotter, Europe's largest outdoor-products retailer. Globetrotter, in Hamburg,
Germany, will start selling adidas hiking boots next year.
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Revenue Is Up
The new 325-gram Terrex Feather Jacket is designed to protect trekkers at heights of up to
19,685 feet. Like all adidas performance sports gear, the $595 product will initially be available
only in Germany and neighboring Austria and Switzerland, along with Russia, China, and Korea.
From 2012, the entire line will be available globally.
The world's second-largest sporting-goods maker doesn't provide sales figures for its outdoor
unit, saying only that the division's revenue rose in the first nine months of 2009 while overall
sales fell 3.7%. VF, which is in Greensboro, N.C., reported that North Face's third-quarter
revenue increased 10% at constant currency rates, while sales of its Vans label climbed 4% on
the same basis.
Growth in the industry isn't universal. Columbia Sportswear said in October that third-quarter
sales fell 4%, to $434.5 million, and forecast a decline for the year of 8% to 9%. The Portland
[Ore.] company had previously predicted a "low-double-digit" drop in annual revenue.
Solo Ascent
Reinschmidt has led adidas' outdoor sports unit since 2007 and has a team of 40 developing
high-tech apparel and boots. In Europe, adidas increased its spending on marketing this year by
running TV commercials with Alexander and Thomas Huber, brothers who are known for
extreme Alpine climbing. The sporting-goods maker also started sponsoring Reinhold Messner,
who made the first solo ascent of Mount Everest without bottled oxygen.
Adidas Chief Executive Herbert Hainer has said his company would build its outdoor-sports
division using its own brand name and without resorting to acquisitions.
"Adidas is doing a seriously good job as the company tries to take advantage of the increasing
interest for outdoor gear," says Mark Held, secretary general of European Outdoor Group. He
expects the industry's growth to continue into next year. "Even in hard times, people continue
buying outdoor gear to escape for a while from the seriousness of life."
http://www.businessweek.com/innovate/content/dec2009/id2009129 _588770.htm
~~~~~~~~
By Holger Elfes, Dusseldorf,[email protected]
http://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://www.businessweek.com/innovate/content/dec2009/id2009129mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.businessweek.com/innovate/content/dec2009/id2009129http://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#toc7/30/2019 Saurabh Report
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MMAARRKKEETTIINNGG--MMIIXX ((FFOOUURRPPSS)):: AADDIIDDAASS
11.. PRODUCTWhatever your athletic preference, you can now purchase an extensive range of Adidas footwearand apparel online. From running shoes to baseball cleats, eye wear to lanyards, collegiate
licensed jackets to good old fashioned cotton T-shirts, all things sport are available at the Adidas
store.
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HOW DO ADIDAS CREATE ITS PRODUCTS
Adidas goal is to create a product that is honest it must perform. The rule is simple:
form follows function.
Technology and functional design. A development team makes the actual prototypes.
These prototypes are then presented to the retail market by the marketing department.
An Adidas product is the result of the intense thought and creative energy of many
different people. The following is a general outline of how we create our
performance-based products.
1. The marketing department evaluates athletes needs and develops a basicconcept of how those needs should be met. This concept is then presented to the
design department.
2. Based upon this concept from the marketing department, the design teamssketch possible prototypes.
3. The people from design and marketing consider the prototype sketchestogether, narrowing the selection to those they anticipate will most successfully
meet athletes needs.
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4. The development department then works with the design department to createan actual prototype from the selected sketches.
5. Three separate groups marketing, design and development meet and discusshow to improve the prototype.
6. Samples are wear-tested to ensure the product meets Adidas standards forperformance and durabili ty and stands up to the demands of the sport for which
it was designed.
7. Preview samples are presented to key accounts and consumer focus groups forfeedback. Based upon this information, final changes are made.
8. Samples are distributed to Adidas sales representatives for presentation toretailers.
9. The finished product is delivered to retailers.As A BRAND
At Adidas you have got to be sporty. At Adidas the brand awarding is been taken
rather seriously at its headquarters. Adidas wants to bring inline skates into India.
What that kind of stuff got to do with Indian market? Yes, it wont really be a hot
seller, but it will contribute a lot to Adidas brand image. That s the Adidas way of
doing it image is a critical part of branding strategy the world ov er.
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The idea of the company is to introduce performance specific sports shoes in the
Indian market by building images around the world & at the same time create the need
for these shoes at the ground level. Adidas already has heavy weight sportsmen such
as Sachin Tendulkar, Leander Paes & Mahesh Bhupathi endorsing the brand in India.
They had the image, apart from endorsing the performance element in the brand.
Adidas steps out of crease with a clear sports positioning. Adidas will take on arch
Nike with almost the same posi tioning. Its working with promis ing athletes to give
them a taste of its products. Adidas nowadays is capturing an attitude that is sports
related.
Adidas in fact did go through a limited fashion phase. Adidas says that you are
tempted to make quick buck but we would like to stick to the sports brand imagebecause that make us fashionable.
For Adidas the product plays an eminent role in the enhancement of
their corporate as well as sports image:
ADIDAS SAYS Nothing compromised. The most innovative Adidas products created
specifically to help make you a better athlete. For Adidas, product is not just a assortment of few
items. But it involvesdeveloping of the right productwhich can then be put to right place &
sold with the right promotion & price.
As studied earlier an Adidas product is the result of the intense thought and creative
energy of many different people. If a company sell an automobile, is it selling a
certain no. of nuts and bolts, some metal sheet, an engine and four wheels? If a
company sell a delivery service, is it selling so much wear and tear on a delivery truck
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and so much operator fatigue? As per Adidas the answer to these question is instead
what we are really selling is the satisfaction, use or profit the customer wants.
Adidas says that all the customer wants is, that whatever product they purchase should
fulfill all their needs and preferences. They dont care how they were made. Further
they want that when they order something, the dont really care how much out of the
way the driver had to go or where he/she has been. They just want their package. That
means for them only the final service matters.
As per Adidas the idea of product potential customers satisfactions or benefits is very
important. Adidas says that the total product is not just a physical product with its
related features, but it includes accessories, installation, instruction on use, the
package, perhaps the brand name which fulf il ls some psychological needs a warrant y
and confidence that service will be available after the purchase.
2. PRICING:Adidas is clear, it wants to become the no. one sports brand in India, a choice brand
for all brands. So far so good, but how will it tackle a price conscious market like
India? Adidas feels that being a high energy business Adidas introduces 600-700
articles every six months enables the brand to remain fresh and bring on an
international and Indians the brand from the price stand point.
Price, thats the most critical factor in the Indian context. Adidas believes it has to
deliver a functional at an affordable price. Its a tough job to maintain the integrity
of the performance and still come out with a product a right price point. Globally
shoes start at $50. But in India as the perceived need is lower, you have to make the
product more af fordab le.
To tackle this, Adidas came out with speed 2000, a product priced at Rs.995 with the
help of local and Hong Kong source people. Adidas however feels that its just the
matter of time before India coverages the world on this front. It is very difficult to
operate on a lower price point and maintain integrity of product, but its been barely 3
years since the sports market has taken off. The original sector is just 20% of the total
market and 80% of the volumes comes from sporty shoes. But our market is producing
products at a pr ice that is relevant to the consumers.
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Adidas feels that as the volume go up, Adidas will try and work out price points as
people graduate with better understanding of qual ity and price percept ion. Volumes
are bound to go up. Adidas started at the time when India had no strength out in the
sports products market in 1989 90. Its then licensing partner Bata, and it had
limitations of what it could have put behind the brand. So company took the next best
step when the licensing agreement ended to take a bigger share in business. To
conclude we can say that Adidas is putting all efforts to bring down the price
consciousness in the Indian market. Company is trying to make products, which are
easy to afford and still maintain the integrity of their performance.
Growth has been phenomenal for Adidas even given the base is small. In 1998 Adidas
grew by 25%, 1999 by over 50% and this year Adidas is expecting more than 50% interms of value in both shoes and apparel, while the industry growth as a best case
estimate has been 20-25%.
3. PLACE AND PHYSICAL DISTRIBUTION:
A: Place
Adidas is very much concerned about its second p. as perAdidas place and physical
distribution of the product is something on which almost every company spends a
handsome amount of money.
Hence Adidas takes a good care of its place and physical distribution process. Adidas
has appointed marketing specialists who are taking care of the supply of the product
and their distribution channels and process.
Process used assorting progress
Entire range, which is available is put together to give a target market what it wants. Marketing
specialists put together an assortment to satisfy some target market. His is usually done by those
who are close to the retailers only.
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B: Physical distribution
As per Adidas nearly half of the costs of marketing is spend upon the physical
distribution. To take care of this problem Adidas has appointed marketing managers
who decides how the transporting and storing functions should be divided within a
channel.
Note: Physical distribution can be varied endlessly in a marketing mix and in a channel system.
Trucks
In Adidas, except the export products, trucks are considered to be the best medium for transport.
The flexibility of trucks makes them really good for moving small loads for short distances. They
can travel on almost any road. According to Adidas they can give extremely fast service. Also
trucks causes less breakage in handling.
4. PROMOTION:Adidas is one of the Indias biggest company of sports that spends nearly $10 million on its sales
promotion and advertising in Indian Market. Adidas believe that it just cannot be taken lightly. It
is a very important aspect of products life cycle. It is the process which is responsible for the
growth or decline in the sale of the product. Adidas thinks that promotion is communicating
information about the product between the seller and the buyer to change attitudes and behavior.
To handle the companys promotional activities Adidas has employed marketing managers,
wherever the Adidas is located. These marketing managers look after process of the promotion
of the products of their company. As per Adidas the marketing managers promotion job is to tell
the target customers that the right product is available at the right place and at the right time and
especially at the right price.
Adidas thinks that only taking the product to the customers is not a task of thecompany. But company takes a very important look about how the product works and
this message is communicated to their consumers. Because a wrong message can lead
to the end of their products life.
Sales Promotion
Adidas is the most popular amongst its rival for its excellent sales promotional
activities. As per Adidas they say that they themselves are responsible for the
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encouragement of the customer to by their products. Adidas believes sales promotion
tries to compliment the companys selling efforts.
STEPS TAKEN BY ADIDAS TO PROMOTE SALES
In the last years the Adidas has almost given sale to its products 6 to 7 times i.e.
almost twice in a year Adidas goes for discount on sales. T hey arrange contest.
In order to motivate the employees of the company Adidas also prepares
training material for the companys own sales force. They even design the sales
materials for the companys own sales force to use during the sales calls.
As per Adidas, people see same message in different ways. They may interpret the
same words differently. So Adidas always tries to deliver the message which everyonecan easily understand.
ADVERTISING
As per Adidas advertising can get results in a promotion blend. Good results are
obtained at a cost of course. The amount spent in the Unites States for advertising is
growing. Continuously, from World War II to 1980 it went from $1 billion to $50
bi ll ion. Adidas also spends nearly $2.9 mill ion on its advert is ing throughout the
world. Adidas in India is spending almost $17 million on advertising.The heavy
weight players like Sachin Tendulkar, Leander Paes and Mahesh Bhupathi are already
attached with their ad-campaigns.
OTHER STEPS
Adidas, the brand with three stripes, seems to use the elements of high-tension in its
ads. Remember the Sachin Tendulkar commercial. How everything is near -frozen, and
the shattering glass signifies release. Release of tension. Adidas gives you a chanceto but the boundaries in every sphere.
Only now, the setting is not the playground or the track or the court, it is the urban
landscape with its omnipresent traffic jams, crowded streets and so forth. This way,
Adidas becomes a part of li fe . Anyones li fe . You dont have to be the high -voltage
performer to be a par t of the Adidas fami ly. And it goes beyond that Adidas
becomes something that makes you better . Not just as an athlete, but as a sports
person, a be tter hu man being.
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One of the advertisement: The spot featuring Boldon, shows him chasing a thief
(whod stolen a TV set when its owner was in the bath) through the dark streets. To
help a man (the owner, in a towel) in distress. And he uses all the power that he can,
to do what he has to do and what he needs to do. And Adidas helps him perform
better , than he would otherwise have been able to . This is perhaps shown in an oblique
way when the spot ends at the feet of Boldon and the bather.
One is wearing a pair of Adidas shoes while the other is barefoot. Adidas makes you
better , goes the base. In short, the other man could have done as well as Boldon. The
bather reads any man. Any man who wears Adidas . And Adidas goes beyond athlet ic
performance it becomes everyday life. In stark reality. Though humorously and
light, it has a deep meaning.
LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING
STRATEGY IN INDIA
Continuing its association with trump card Sachin, the local four-ad print campaign tries to
connect Adidas product attributes with Sachins magic. Instead of presenting just one
dimensions :
The first ad connects Sachins choice of a heavy bat with Adidas Falcon Dorf light weightshoes. Says the headline: Sachin likes his bat heavy, not his shoe. The secon d new shoe range
to be introduced for the first time in India. Sub-branded Aksu and priced at Rs 2,299, these are
athletic sandals primarily meant for water-based adventure sports. Finally, The next ad will
convey that Adidas covers various price points by promoting its existing Portland range priced at
Rs 1,499 and 1,799 (the leather version).
The importance of celebrity sponsorship and events to Adidas is illustrated by Robert Louis-
Dreyfus letter in the companys 1998 annual report :
When it comes to showcasing our brands, 1998 was truly exceptional. Early in the
year, the Winter Olympics focused the attention of sports enthusiasts on Nagano. In
summer, the Soccer World Cup in France attracted more spectators than any single
sports event before. When the French team, promoting the three stripes, won the World
Cup, we could not have wished for more. These were great times for our brand.
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Adidas has reached an agreement with ISL Marketing G of Switzerland to become an official
sponsor of the 2000 UEFA European Championships. Adidas will have access to the official
emblems, mascot and trophy for the design of its own products..
In 1998, the overall Adidas budget for promotion and sponsoring accounted for nearly 15% of
turnover.
The positioning is being communicated through its global campaign-released worldwide in
February 1999 but in India, only in May-as well as through a four-ad print campaign developed
locally by RK Swamy/BBDO. Says G Kanan, general manager, marketing, Adidas: We are the
only brand with heritage in sports. As a brand, were not an attitude thats fashionable. Were an
attitude that is relevant all the time.
The campaign also introduces a new brand line for Adidas : Forever Sport. The line sums up the
deeply-felt and long-term love affair (it has been involved with sports since 1928) that
Adidas has with sport in all of its forms. Interestingly, the new brand line has been introduced
almost after a decade, when it was using Earn your stripes as its tag -line. The company dropped
it during the late 80s after it found that it wasnt connecting too well with its consumers.
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THE ADIDAS LOGO
The Trefoil was adopted as the corporate logo in 1972. It represents the heritage and history of
the brand. In 1996, it was decided that the Trefoil would only be used on heritage products.
Examples of product featuring the Trefoil logo include the Stan Smith, Road Laver, A-15 warm-
up, and Classic T-shirt.
Equipment
The Adidas Equipment line was launched in 1991. This line of footwear and apparel represents
the most unique and functional of Adidas products. Equipment is the ultimate expression of what
is uniquely possible by design when form follows function.
In January 1996, the Three-Stripes brand mark became the worldwide Adidas corporate logo.
This logo represents performance and the future of the Adidas brand. This logo is used in alladvertising, printed collateral and corporate signage.
Since 1949, the Three-Stripes have been an integral part of our brand and product designs. This
trademark has become synonymous with Adidas and its dedication to producing high-quality
athletic products to help athletes perform better.
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COMPETITIVE ANALYSIS
LIST OF COMPETITIVE BRANDS AND COMPARATIVE ANALYSIS
1. NIKE2. REEBOK3. FILA4. SPEEDO5. NEW BALANCE6. SKETCHERS7. PUMAPresent Situation
Adidas is currently ranked third in almost every category in the global athletic shoe industry.
However, they rank second only to Nike in terms of sales. The main competitors of Adidas
include Nike and Reebok However, other smaller competitors include Fila, Puma and Easy
Spirit. Adidas commands only 5% of the athletic shoe business in the India., compared with the
40% for the fearsome Nike, but the rejuvenated Adidas has climbed to within easy reach of
Reebok, which has been struggling in the past couple of years. Adidas is also steadily regaining
market share lost to other brands such as India. Gear and Fila
The Future
But the battle has only started, and the foreign sports companies are here for the long term. They
can sustain losses for years to come in order to gain market share. What they are doing at
present, is building up distribution networks to cover every nook and corner of the country and,
setting up manufacturing facilities.
Only those Indian manufactures which have a strong focus on manufacturing and technological
upgradation will survive in the long run, although with a much smaller market share than they
have at present. Small companies will be sidelined totally and will exit from the sports market
altogether. ADIDAS in INDIA has always been driven by its Value for-money strategy. The
company needs to identify critical success factory and work assiduously towards achieving it.
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COMPARATIVE STUDY WITH REEBOK
COMPARATIVE STUDY WITH THE HELP OF SPORTS FOOTWEAR
I. CATEGORY : SHOE (REEBOK)
Reebok and Unit Casual Shoe Mens
(Release Date : Dec. 12, 2004)
Item No. : 1387196
Price : Rs. 3,600.50
Features :
Soft pad Supple upper bed Comfort Support Moulded EVA sock liner Moulded Midsole Cushion High abrasion rubber outsole Traction and durability Style and design
This street inspired footwear was designed for young people who want the style of their gear to
reflect the attitude of their life. This street inspired footwear was designed for young people who want
the style of their gear to reflect the attitude of their life. This G6 lifestyle footwear provides clean, court
inspired designs that mirror distinct style and flavour. Reebok has consented to donate fifty cents of
proceeds of each pair sold to charitable causes.
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CATEGORY: SHOE (ADIDAS)
Adidas supernova T-MAC 3
Item no. : 3636825
Price : Rs. 4,500.00
Features
Comfort Soft and stretchable mesh Foot-hugging inner bootie
Optimal cushioning support
Full-grain leather upper with stretch mesh adiPRENE + forefoot cushioning Shock-absorbing adiPRENE heel Moisture wicking, antimicrobial ortholite sockliner Non-marking carbon rubber outsole Style and designThis modern classic is the choice of high level professional players all around the world. The
supernova T-Mac3 features the highest quality craftsmanship coupled with pure performance.
The adiPRENE optimizes grip on soft to very soft natural playing surfaces and excellent feel and
fit.
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COMPARISON BETWEEN REEBOK G UNIT CASUAL SHOE MENS, ADIDAS
SUPERNOVA T-MAC3 SHOES AND NIKE SHOES
Reebok Adidas Nike
Comfort Support Moulded EVA sockliner Cushion support Supportive pad Moulded midsole Supple upper bed Traction and durability High abrasion rubber outsole Soft and stretchable mesh
Foot hugging inner bootie
Moisture-wicking, antimicrobial ortholite
sockliner
Carbon rubber outsole Fore foot cushioning Shock absorbing heel Style and design
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GGLLOOBBAALL MMAARRKKEETT SSHHAARREESS OOFF VVAARRIIOOUUSS BBRRAANNDDSS IINN
AATTHHEELLEETTIICC FFOOOOTTWWEEAARR
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DDeeffiinnee tthhee MMaarrkkeett
Some of the theory we have used in my project are as follows:
Theory: what is market research and why it is important.
Market research is a method of collecting data which will make you (as a business) more aware
of how the people, you hope to sell to, will react to your products or services. Market research
will answer questions like:
Whether your products or services are needed Who might want to buy your products What age, sex, income occupation etc. are the people I want to sell to. If there are changes taking place and how this might affect what you sell How well your products or services might sell How much demand there is for what you hope to sell What price would people be prepared to payConducting market research
There are number of ways in which you can carry out your research but you need to carefully
consider why you made this choice and what you hope the evidence will suggest to you.
Questionnaires and personal interviews are one of the most common ways in which you can
conduct market research, and there are many methods of gathering data this way: Direct
Interview, Mail Survey and Telephone interview. Depending on the type of data you hope to
collect will have a impact on what you choose to use. we have made use of two type of survey
methods, questionnaire and mail survey. We have asked some question about the company by
mail and also by direct contacts. The Question we have asked are given in questionnaire part
below.
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AIM/OBJECTIVES OF THE MARKET STUDY
1. To understand why customers buys a particular product.2. To know the marketing opportunities3. To understand marketing problems4. To help in the selection of right course of actions5. To know about customers acceptance of the product6. To understand the distribution network7. To forecast the probable volume of the future sales.8. To analyze the excepted market share9. To assess competitive slight policies
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RREESSEEAARRCCHH MMEETTHHOODDOOLLOOGGYY
INTRODUCTION:
Research methodology is a way to systematically solve the research problem is to how
research is done scientifically. It consists of the different steps that are generally adopted by
the researcher to the study his research problem along with logic behind them. It is
necessary to the researcher to develop certain tests.
RESEARCH DESIGN:
Research design is a plan to answer whom, when, where, and how the subject under
investigation conceived so as to obtain answers to research questions. The type of research
design involved in this study is descriptive research studies.
DESCRIPTIVE RESEARCH STUDIES:
Descriptive research studies are those studies, which are concerned with describing the
characteristics of a particular individual, or of a group, where as diagnostic research study
determine the frequency with which something occurs or its association with something
else.The studies concerning whether certain variables are associated are example of diagnostic
research studies. As against this, study concerned individual, group or situation are all example
of descriptive research studies. Most of the social research studies come under this category
from the point of view of the research design.
DATA COLLECTION METHOD:
The required data was collected by both the primary and secondary sources. The data objective
are describe from the research objectives and their determination rests mainly on the research to
translate what the decision marker wants into specific descriptive of the needed data.
Primary data is the data gathered for the first time by the researcher by usingquestionnaire.
Secondary data, on the other hand, is those which have already been collected bysomeone else and which already been passed through the statistical process.
Secondary data pertaining to this study was obtained from research papers, informationavailable on internet etc.
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stage a few are selected at random satisfying the characteristic and so on to finally make the
necessary selection of samples. All the samples selected at random at different stages will
posses the common characteristic or will be homogeneous on some basis Cluster sampling
involves arranging elementary items in a population into heterogeneous subgroups that are
representative of the overall population. One such group constitutes a sample for study.
SAMPLING SIZE:
The total numbers of respondents are termed as sample size. The sample size for this analysis
is 100 respondents.
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FINDINGS & ANALYSIS
Company research report
(A) Company Description
Adidas-Salomon AG(ADIDAS). Production and marketing of sports equipment, footwear and
apparel under the brand names of Adidas, Salomon, Taylor Made and Mavic. Sales of Footwear
accounted for 45% reveneue; Sales of Apparel, 35% and Sales of Hardware, 20%.
(B) Competitor Analysis
Adidas-Salomon AG operates in the Mens & boys clothing sector. This analysis compares
Adidas with three other sport shoe and apparel manufacturers: Nike Inc. of the India (2004 salesof Rs. 400 billion of which 59% was Footwear), Reebok International Ltd. of the India (2005
sales: Rs. 90 billion of which 73% was Footwear), and Amer Group PLC which is based in
Finland (2005 sales of 6.46 billion Finnish Markka [Rs. 4000 million] of which 24% was
Racquet Sports). Note: not all of these companies have the same fiscal year: the most recent data
for each company are being used.
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DATA ANALYSIS
1. Which of the following in your opinion potrays itself as the best before consumers?
marketingstrategy
Frequency Percent Valid Percent
Cumulative
Percent
Valid Adidas 40 40.0 40.0 40.0
Nike 33 33.0 33.0 73.0
Reebok 18 18.0 18.0 91.0
Others 9 9.0 9.0 100.0
Total 100 100.0 100.0
Inference-
We can conclude from the above that majority of the people feel that marketing strategies of
Adidas are better as compared to its major competitors followed by nike and then there is reebok
. other brands include puma , fila , Portland etc
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2. According to you, which of the following brand is best in sports wear?
bestbrand
Frequency Percent Valid Percent
Cumulative
Percent
Valid nike 28 28.0 28.0 28.0
puma 12 12.0 12.0 40.0
Adidas 27 27.0 27.0 67.0
reebok 16 16.0 16.0 83.0
portland 9 9.0 9.0 92.0
fila 8 8.0 8.0 100.0
Total 100 100.0 100.0
Inference
When a comparison was made on the basis of footwear , we found that the brands Adidas and nike both
attract the people , but Adidas has a slight edge over Adidas.reebok is the 3rd favorite of the people
followed by puma and fila.
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3. Do you think Adidas provides its customers value for money ?
valueformoney
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 78 78.0 78.0 78.0
no 22 22.0 22.0 100.0
Total 100 100.0 100.0
Inference
When I surveyed the people on the basis of value for money being provided by Adidas majority
of the people were satisfied and agreed that they do get value for money, however 22 % had bad
experience with Adidas
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4. What factor do you keep in mind while shopping from Adidas?
factors
Frequency Percent Valid Percent
Cumulative
Percent
Valid advertisement 7 7.0 7.0 7.0
price 27 27.0 27.0 34.0
design 7 7.0 7.0 41.0
quality 26 26.0 26.0 67.0
comfort 33 33.0 33.0 100.0
Total 100 100.0 100.0
Inference
In the above survey most of the people were of opinion that the shop from Adidas because of the
comfort provided by the company and also the people were very satisfied with the quality of the
products. People generally buy during the discount seasons as price is also an important factor
while shopping from the company.
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5. If you have to shop for sports wear apart from Adidas which of the following it will be?
Inference
We found out that people prefer to shop from nike the most after Adidas followed by puma
which is the next best favorite of the people , brands like newbalance ,fila are not so attractive
among the customers
alternative
Frequency Percent Valid Percent
Cumulative
Percent
Valid nike 31 31.0 31.0 31.0
reebok 22 22.0 22.0 53.0
fila 10 10.0 10.0 63.0
new balance 9 9.0 9.0 72.0
puma 28 28.0 28.0 100.0
Total 100 100.0 100.0
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6. Who among these do you feel is the perfect choice for the brand
ambassador of Adidas ?
bestbrandambassador
Frequency Percent Valid Percent
Cumulative
Percent
Valid sachin tendulkar 36 36.0 36.0 36.0
rickey ponting 22 22.0 22.0 58.0
david beckham 20 20.0 20.0 78.0
sania mirza 13 13.0 13.0 91.0
Zindine Zidane 9 9.0 9.0 100.0
Total 100 100.0 100.0
Inference
Out of the various brand ambassadors of Adidas sachin tendulkar is the favorite among the
people followed ricky pointing and david beckham. Zinedine zidane the French footballer and
the tennis star are not so popular among the people as the brand ambassadors.
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7. Do the brand ambassador effect your decision to opt for Adidas ?
brandambassador
Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly agree 9 9.0 9.0 9.0
agree 39 39.0 39.0 48.0
neutral 21 21.0 21.0 69.0
disagree 28 28.0 28.0 97.0
strongly disagree 3 3.0 3.0 100.0
Total 100 100.0 100.0
Inference
In the above survey we found out the brand ambassador endorsing the product does have a
significant impact on the buying decisions of the people.as can be seen from the graph ,39 %
people agree that their choice does get effected by the companys brand ambassador
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8. Are you aware about the online shopping facility provided by Adidas ?
awarenessonlineshopping
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 28 28.0 28.0 28.0
no 72 72.0 72.0 100.0
Total 100 100.0 100.0
Inference
When the people were surveyed about the online shopping facility being provided by Adidas we
found out that most of the people were not aware about such a facility being provided by Adidas
.the survey shows that only 28 % were aware about online shopping being provided
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9. Which of the following induces you the most to opt for Adidas ?
Salespromotion
Frequency Percent Valid Percent
Cumulative
Percent
Valid discount offers 23 23.0 23.0 23.0
sponsorship 12 12.0 12.0 35.0
advertisements 22 22.0 22.0 57.0
online shopping @
ShopAdidas8 8.0 8.0 65.0
brand 35 35.0 35.0 100.0
Total 100 100.0 100.0
Inference
From the above we can see that Adidas as a brand attracts the customers the most . the various
discount offers and advertisements also serve as a mean to induce the people to shop from
Adidas. The online shopping facility does not attract a lay customer much to shop from Adidas
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10. According to you, in which category should Adidas venture into?
Additionalproductline
Frequency Percent Valid Percent
Cumulative
Percent
Valid formal wear 28 28.0 28.0 28.0
informals 42 42.0 42.0 70.0
party wear 30 30.0 30.0 100.0
Total 100 100.0 100.0
Inference
From the above we can see that people are of view that Adidas should venture into the
other related field like informals. People also feel that it should venture into apprals like
formal wear and party wear
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11.Which of the following products do you purchase most often from Adidas?
Mostpurchasedproducts
Frequency Percent Valid Percent
Cumulative
Percent
Valid shoes 42 42.0 42.0 42.0
caps 10 10.0 10.0 52.0
t-shirt 30 30.0 30.0 82.0
pullovers 8 8.0 8.0 90.0
tracksuits 10 10.0 10.0 100.0
Total 100 100.0 100.0
Inference
From the above we can see that out of the various products being provided by Adidas its sports
shoes are the favorite among the people followed by the t-shirts .its other products like track suits
, caps and pullovers are being purchased evenly by the customers
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12. Do you think Adidas is able to promote itself in a better way as compared to its
competitors?
promotioncomparison
Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly agree 9 9.0 9.0 9.0
agree 39 39.0 39.0 48.0
neither agree or disagree 21 21.0 21.0 69.0
disagree 28 28.0 28.0 97.0
strongly disagree 3 3.0 3.0 100.0
Total 100 100.0 100.0
Inference
Most of the people are of view that the marketing strategy of Adidas is good and the company is
able to communicate to its various customers effective through its various marketing strategies
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SWOT ANALYSIS OF ADIDAS
Strengths :
The main strength of Adidas is his Product Quality. The quality and the material uses in Adidasis very good. The company has a good brand image in the market, the publicity and the
advertisement is also very good and lastly company hold a healthily market share in the market.
Weakness:
The major weakness in the Adidas is that the manufacturing of the products of Adidas is not
done in India itself it is being import hence the cost become high and the margin of profit
becomes low thats why company must give a deep thought on manufacturing their products in
India.
Another major weakness in the company is that it is not catering to all the segments which I have
already discuss above, If these two weakness in the company can be eradicated then the company
may earn high profit and better market status.
Opportunities:
Adidas does have many products for the urban segment or poor people, but there are hardly any
products or we can say that there are no products for this segment. India is more a rural country,
in the total population of India major part of population lives in rural area and these people can
not afford the costly products of the company like Adidas hence company must target this
particular segment they must introduce the shoes and other product according to their demands.
and also price is one of the major factor which may influence this type of segment hence
company should make their policy accordingly.
Company must also consider the rage of products as compare to Nike and Reebok. In my
opinion the company must introduce more rage or more variety in the market to compete with
their competitors and also the customer have more choices to choice the product from.
Threats:
Adidas does not have strong distribution network as compare to Nike and Reebok in India. Nike
has more number of retail outlet then Adidas and Reebok has a unique distribution network, the
company Reebok not only uses its outlet for the sale of their product but also use some other
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shoes company outlet like Bata. In a Bata showroom u can find Reebok shoes and other
products. But this is not a case with Adidas hence Reebok has a extra advantage over Adidas.
Conclusions:
ADIDAS in INDIA has always been driven by its Value-for-money strategy. The company needs
to identify critical success factory and work assiduously towards achieving it.
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RECOMMENDATIONS & CCOONNCCLLUUSSIIOONN
Turbulent is the words that aptly describe the scenario in sports industry in last two last
financial years. By frequent price cuts in market and larger than live Marketing game plans,
competition reached its new highs and lows. It is no longer sufficient to just be competitive. A
company which has to survive has got to have competitive advantage. One needs to take strategic
initiative in the short run to achieve the desired positioning in future. One has to foresee
tomorrow.
Understanding competition today involves three levels:
Competition for intellectual leadership for new ideas that create new advantages. Competition for translating these ideas into product/service faster than others.Competition for market share.Following tips are helpful in combating competition:
Do not nature and PARADIGMS because today anything is possible. Search for newer markets than expanding your customer base. Come out with state of the art, feature packed affordable and competitive advantageous
products.
Set Benchmarks for growth. Improve up on distribution channels for viable coverage of the market. Wear out competition through trend setting, inimitable tactical moves based on our
infrastructure strengths.
The strategic intent should be clear down the management. Work on your strengths i.e. Infrastructure, financial base, backward integration. POP and MERCHANDISING material should be made as per international market. CORPORATE TRAINING PROGRAMMEA for Development of manpower from
external faculty.
We have so far identified the various areas on whichADIDASand other major sports companies
need to improve upon to achieve the desired level of competitiveness. These improvements
would give ADIDAS and the other sports companies base to compete with the MNCs and help
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the Indian companies to reduce the impact of MNCs on the Indian Market in the future. Indian
manufacturers will have to react quickly because any delay in reacting to the threat posed by the
MNCs would only give the MNCs time to establish themselves in the market. With their
expertise and financial capacity they would be nearly impossible to compete with once they get a
firm foot hold in the market.
THE FUTURE
But the battle has only started, and the foreign sports companies are here for the long term. They
can sustain losses for years to come in order to gain market share. What they are doing at
present, is building up distribution networks to cover every nook and corner of the country and,
setting up manufacturing facilities.
Only those Indian manufactures which have a strong focus on manufacturing and technological
upgradation will survive in the long run, although with a much smaller market share than they
have at present. Small companies will be side lined totally and will exit from the sports market
altogether.
ADIDAS in INDIA has always been driven by its Value for-money strategy. The company
needs to identify critical success factory and work assiduously towards achieving it.
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ANNEXURE
QUESTIONNAIRE
Dear Sir/maam
This is a questionnaire aimed at providing information and understanding the marketing
strategies of Adidas. Please provide required information and oblige me.
Name: ---------------------------------- Age: -------- ---------------------
Sex: ---------------------------- Contact details-----------------
1. Which of the following in your opinion potrays itself as the best before consumers?
a) Adidasb) Nikec) Reebokd) Others
2. According to you, which of the following brand is best in sports wear?
a) Nike
b) Puma
c) Adidas
d) Reebok
e) Portland
f) Fila
3. Do you think Adidas provides its customers value for money ?
a) Yes
b) No
4. What factor do you keep in mind while shopping from Adidas?
a) Advertisement,
b) Price
c) Design
d) Quality
e) Comfort
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5. If you have to shop for sports wear apart from Adidas which of the following it will be?
a) Nike
b) Reebok
c) Fila
d) New balance
e) Puma
6. Who among these do you feel is the perfect choice for the brand
ambassador of Adidas?
a) Sachin Tendulkarb) Ricky Pontingc) David Beckhamd) Sania Mirzae) Zindine Zidane
7. Does the brand ambassador of Adidas effect your decision to opt for it?
a) Strongly agreeb) Agreec) Neither agree nor disagreed) Disagreee) Strongly disagree8. Are you aware about the online shopping facility provided by Adi das?
a) Yesb) No
9. Which of the following induces you the most to opt for Adidas?
a) Discount offersb) Sponsorships for eventsc) Advertisementsd) Online shopping @ ShopAdidase) Brand
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10. According to you, in which category should Adidas venture into?
a) Formal wearb) Informalc) Party wear
11. Which of the following products do you purchase most often from Adidas?
a. Shoeb. Capsc.
T-shirts
d. Pulloverse. Tracksuits
12. Do you think Adidas is able to promote itself in a better way as compared to its
competitors?
a) Strongly agreeb) Agreec) Neither agree nor disagreed) Disagreee) Strongly disagree
Thank you for your time and for sharing your views
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BBIIBBLLIIOOGGRRAAPPHHYY
Web Sites
www.Adidas.com
www.indiainfoline.com
www.webcrawler.com
www.google.com
www.indiatimes.com
Magazines
A&M
Business India
India Today
Business Today
Newspapers
The Times of India
The Hindustan Times
The Economic Times
Books:
PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM EDITION V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT,
SECOND EDITION.
WILLIAM STANTON.J, MICHALL J.ETJEC, BRUCE J.WALKERFUNDAMENTAL OF MANAGEMENT.
RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.
http://www.webcrawler.com/http://www.webcrawler.com/