RESEARCH REPORT

ON MARKETING STRATEGIES OF

ADIDAS

Report Submitted For The Fulfillment Of The Requirement Of Degree Of Master Of Business Of Administration

Submitted To

Submitted by: Roll no.: -4th Sem

ACKNOWLEDGEMENT

First and foremost I would want to thank my Institute Janhit Institute of Education & Information, Greater Noida for giving each and every student a platform of such nature where even before the completion of twos course, interaction with the industry and exposure to the same is made possible. I express my immense pleasure and solemn gratitude to Mr. Satish Matta, Faculty, JIEI, Greater Noida for giving me this opportunity to study an entire sector very closely. Last but not the least I am grateful to all those persons who were involved with me in the project for their co-operation and support.

RAHUL ROHIT

TABLE OF CONTENTS
OBJECTIVES OF THE STUDY AIM / OBJECTIVES OF THE MARKET INTRODUCTION DEFINE THE MARKET MARKETING MIX METHODOLOGY FINDINGS AND ANALYSIS SWOT ANALYSIS SALES ANALYSIS COMPETITIVE BRAND & COMPARATIVE ANALYSIS LIMITATIONS RECOMMENDATIONS & CONCLUSION BIBLIOGRAPHY APPENDICES

Objectives of the Study

AIM/OBJECTIVES OF THE MARKET STUDY

1.

To understand why customers buys a particular product.

2. 3. 4. 5. 6. 7. 8. 9.

To know the marketing opportunities To understand marketing problems To help in the selection of right course of actions To know about customers acceptance of the product To understand the distribution network To forecast the probable volume of the future sales. To analyze the excepted market share To assess competitive slight policies

Introduction

INTRODUCTION
Our project topic is "Adidas" which is a shoe company and we are analyzing its Marketing Strategy. We have chosen this particular topic mainly for two reasons. Since our

childhood days we had great interest in the shoes and We like to buy new shoes as and when it comes in the market. The Shoe Company that We most admire is Adidas. Hence We have decided to do my project report on this company.

Brief

History

In

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
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of movement, and safety, helping the athlete to perform more efficiently. After the successful creation and launch of Adidas America

General Information
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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. AdidasSalomon 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
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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. AdidasSalomon worldwide. Turnover and Brand Image The turnover of Adidas company has grown to 45 Million Rs. in 2005. 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 2005. AG has approximately 13,400 employees

12

Future Plans Turnover is expected to rise to 550 million rupees for Adidas India in 2006. cash break even is fore cast during calendar year 2004 and an operating break even during 2005. The other Adidas owned brands, salomon & taylor made are expected to hit Indian Adidas stores during 2005 and 2006. 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.
13

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.

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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. 1993 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.

15

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. 1997 The acquisition of Salomon broadens the Adidas product range to include Taylor Made for golf products and Mavic for cycle components. 1997 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

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2005. Sale of Salomon The 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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THE TECHNOLOGY TIME LINE OF THE COMPANY 1925 Leather soccer shoes with nailed studs and track shoes with hand forged spikes are produced for the first time in the Dassler factory. 1928 Dassler purchases his production building in

Herzogenaurach. 100 pairs of shoes are produced daily. Late 1920s Dassler begins producing soccer balls. 1929 Dassler fills his substantial order of 10,000 pairs of shoes. 1930 Dassler introduces soccer shoes with nail-stripe trim. 1931 The first tennis-specific shoe earns one of the more than 700 patents awarded to Adi Dassler. 1935
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400 pairs of shoes are being produced daily. 1937 Dassler now produces shoes for eleven sports. 800 pairs of shoes are produced daily. 1946 Dassler produces sports shoes made of sailcloth from military tents and rubber from leftover American fuel

tanks after World War II. 1940s Dassler introduces arch support lacing and an early type of speed lacing.

19

1948 Adidas develops the first indoor track shoe. 1949 Adidas produces the first soccer shoes with molded rubber studs. 1950 Adidas produces the first Samba soccer shoe, made for better traction on ice, snow and hard frozen ground. 1953 Adidas produces the first track shoes with changeable spikes. 1953 Adidas produces the first sports bag. 1954 Adidas begins producing soccer boots with screw-in studs, helping Germany win the World Soccer

Championships in Switzerland. The screw-in studs

20

enable the game to be played under vastly different conditions without slipping. 1954 2,000 pairs of shoes are produced daily. 1956 Adidas develops nylon soles for soccer shoes. 1957 Adidas produces the first track shoe with nylon halfsoles. 1960 Adidas develops a rubber toe protector and rubber foxing for the training shoe. 1963 Adidas introduces nylon half-soles with molded inthread inserts. 1964 Adidas introduces outsoles with bending zones, which provide flexibility.

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1964 Adidas produces a track shoe weighing only 96 grams, the lightest track shoe in the world at that time. 1967 Adidas develops heel padding to protect the Achilles tendon. 1967 The first adidas tracksuit is produced. 1968 Adidas introduces injection-molded, multi-studded,

polyurethane soles. 1968 Achille, the first real jogging shoe, is launched on the market. 1968 Adidas introduces the adilette health sandal. 1972 Adidas introduces rain soles.
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1973 Adidas introduces the plastic Ghilly lacing system. 1973 Adidas introduces adicourt sole for indoor tennis surfaces. 1974 Adidas begins tennis racket production. 1974 Adidas introduces its first leisure shoe. 1975 Adidas introduces the adistar 2000, the first track shoe for syntheticd track surfaces. 1976 Adidas introduces the first cross-country ski binding. 1976 Adidas introduces TRX jogging shoes.

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1977 For the first time a soccer shoe is developed with a dual-density sole material. The Copa Mundial, the worlds largest selling soccer shoe ever, is launched. 1979 Adidas introduces shock-absorbing elements for

sports shoes. 1979 Adidas introduces outsoles with beveled studs. 1982 Adidas develops soccer shoe sole materials in three different degrees of hardness. 1985 Adidas introduces the APS, the first running shoe with an adjustable shock absorption system.

24

1986 Adidas introduces the first soccer shoe with bayonet fastening and ceramic screw-in studs. 1988 Adidas introduces the Torsion system, which allows for multi-directional flexibility. It was designed to give the midfoot support during twisting and flexing motions, and proves to be revolutionary in the sports shoe market. 1991 Launch of the Equipment line: a new, performanceoriented and functional, shoe and textile line. 1993 Adidas lunches Tubular Technology, the first shoe with total customization possibilities. 1994 Predator technology for soccer footwear results in more powerful, accurate shots.

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1995 Traxion Technology combines the grip of screw-ins with the comfort of molded cleats. 1995 Adidas introduces Point of Deflection System

technology for running shoes. This outsole technology provides improved shock absorption and stability by deflecting and dispersing pressure at the point of impact. 1996 Adidas introduces Feet You Wear, a concept which provides extra stability by copying the design of the human foot. 1999 Adidas introduces Teflon-coated fabric for swimwear to reduce drag.

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2003 a.D.S (adidas Drainage System): Used primarily in Adventure products, the a.D.S. is a patented system integrated into the midsole of a shoe. Its perforated internal midsole allows for maximum water drainage in wet environments 2006 Introduced ClimaProof: Light, breathable fabrics that block wind, rain and snow while allowing heat and sweat to escape through evaporation, keeping you dry and comfortable in even the harshest conditions

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FOOTWEAR TECHNOLOGIES

adiPRENE Shock absorbing material under the heel. Provides heel cushioning and stability. Provides extra absorption of harmful impact forces. Adds stability a ground contact.

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adiprene Elastic material under the forefoot. Allows a more efficient push-off. Retains natural forces at toe-off for added forefoot efficiency. Maximizes energy use. torsion Helps control of the natural independent rotation of the heel and forefoot. Creates stability and control. Helps the forefoot adopt to surfaces easily. Maintains mid-foot support.

Traxion Lugs in shoe bottom provide optimal ground

penetration and maximum grip. Lug placement optimizes comfort while increasing surface contact. Adds stability at ground contact.

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 Meets the specific needs of different sports and surfaces. Pro-Moderator Usage of TPU as lightweight mid-sole support system reduces weight of shoe giving greater mobility. Improved durability of mid-sole adds to life of shoes providing consistent and stable run. Direct moulding on mid-sole frees your foot from thick inserts giving improved toe-all.

GeoFit Frame An Internal footwear technology that enhances fit and comfort by placing padding in anatomically correct areas. Every piece of anatomically moulded padding follows the form of the foot, evenly distributing pressure for the ultimate fit. Improved padding means improved comfort. Improved comfort equals an enchances sense of stability, further providing more protection.
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 It eliminates the internal heel counter by extending the TORSION bar to act as an external heel counter, thus reducing weight. Quickstrike Light outsole improves flexibility. Abrasion resistant lugs absorb impact. Precise location of outsole lugs-gives consistent

performance. Improves cushioning and durability

adiwear A non-marking rubber outsole compound that offers better abrasian resistance than any other outsole material.

adiTUFF An abrasion resistant material used in the toe and / or lateral forefoot of the shoes upper It protects the upper from excessive wear.

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Define the Market

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Define the Market 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

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 How much demand there is for what you hope to sell What price would people be prepared to pay

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Conducting 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. Theory: marketing mix

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The Marketing Mix

(The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of

ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions,

packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped

36

these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:

The Marketing Mix These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

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Product Decisions The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made: Brand name Styling Quality Price Decisions Some examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Cash and early payment discounts Price flexibility Price discrimination

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Distribution (Place) Decisions Distribution is about getting the products to the customer. Some examples of distribution decisions include: Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Warehousing Distribution centers Transportation Promotion Decisions In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include: Promotional strategy (push, pull, etc.)

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 Advertising Personal selling & sales force Sales promotions Theory : Swot analysis This theory tells about the company strength, weakness, opportunity and Threats. This theory is very important for the company because this theory tell the weakness and the strong points of the company and if company knows it weakness and it strong points then company becomes easy operative and also the profits as well as the market share of the company get increased. 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 venture Adidas India Ltd. was incorporated with an initial investment of Rs. 8000 million with Adidas India Ltd.
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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

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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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Marketin g Mix

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MARKETING-MIX ( FOUR PS): ADIDAS THE PRODUCT: Whatever your athletic preference, you can now purchase an extensive range of Adidas footwear and 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

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following is a general outline of how we create our performance-based products. 1. The marketing department evaluates athletes needs and develops a basic concept 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 teams sketch possible prototypes. 3. The people from design and marketing consider the prototype sketches together, narrowing the selection to those they anticipate will most

successfully meet athletes needs. 4. The development department then works with the design department to create an actual

prototype from the selected sketches.

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5.

Three separate groups marketing, design and development meet and discuss how to improve the prototype.

6.

Samples are wear-tested to ensure the product meets Adidas standards for performance and durability 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 for feedback. Based upon this information, final changes are made. 8. Samples are distributed to Adidas sales

representatives for presentation to retailers. 9. The finished product is delivered to retailers.

A. 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.

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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. Thats the Adidas way of doing it image is a critical part of branding strategy the world over.

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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 positioning. Its working with promising 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 image because that make us fashionable.

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B. Words of G. Kannan (Director Marketing) Our Secret is our commitment to the sports process. We develop shoes that take into account the needs of a particular sports & the role of this brand is driven by this factor. Good news for Adidas is that even in the casual market, the trend is towards being sporty. Going to Gym is fast graduating from a mere fad to serious
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body

building,

strengthening

&

toning.

This

is

reflected in the clothes that people wear today. The three stripes, for instance is unique property which can be reinvented in various forms as trends changes. C. 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 product which can then be put to right place & sold with the right promotion & price.

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VALUE OF ITS PRODUCTS FOR ADIDAS Our goal is to create a product that is honest it must perform. The rule is simple: form follows function. 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 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.
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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 fulfills some psychological needs a warranty and confidence that service will be available after the purchase. PLACE AND PHYSICAL DISTRIBUTION: A: Place Adidas is very much concerned about its second p. as per Adidas 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

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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. 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.

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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. 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.

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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.

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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 the company. 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 encouragement of the customer to by their products. Adidas believes sales promotion tries to compliment the companys selling efforts.

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STEPS THAT ADIDAS TAKE 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. They 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 everyone can 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

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advertising is growing. Continuously, from World War II to 1980 it went from $1 billion to $50 billion. Adidas also spends nearly $2.9 million on its

advertising 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.

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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 affordable. To tackle this, Adidas came out with speed 2000, a product priced at Rs.995 with the help of local and
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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 price that is relevant to the consumers. Adidas feels that as the volume go up, Adidas will try and work out price points as people graduate with better understanding of quality and price perception. 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.
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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% in terms of value in both shoes and apparel, while the industry growth as a best case estimate has been 20-25%. MARKETING STRATEGY Adidas, the brand with three stripes, seems to use the elements of high-tension in its ads. Remember the Sachin Tendulkar and commercial? the How everything glass is STRATEGY ADIDAS OTHER

near-frozen,

shattering

signifies

release. Release of tension. Adidas gives you a chance to but the boundaries in every sphere.

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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 life. Anyones life. You dont have to be the high-voltage performer to be a part of the Adidas family. And it goes beyond that Adidas becomes something that makes you better. Not just as an athlete, but as a sports person, a better human being. 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.

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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 athletic

performance it becomes everyday life. In stark reality. Though humorously and light, it has a deep meaning. MARKETING: ADIDAS In 1997, Adidas became Adidas-Salomon with its US $1.4 billion purchase of Salomon, a French manufacturer of skis and other sporting goods. The deal put Adidas one step closer to competitor and world market leader Nike, and one step ahead of Reebok. Salomon, aside from its winter sport equipment, also owns golf club brand Taylor Made and cycle brand Mavic. The merger makes Adidas/Salomon the second largest sport marketer in the world, and number one in Europe.

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Salomon is currently very strong in North America and Japan, and Adidas has the largest market share in Europe. Adidas is, like Nike, very active insuring sponsorships advertising deals with celebrities. Some of the most famous are Martina Hingis (tennis), Kobe Bryant

(basketball), Peyton Manning, Paul Palmer (swimmer), jan Ullrich (racing cyclist) and the New York yankees. David Beckham, Patrick Kluivert and Zidane all wear Adidas boots, the Predator Accelerator. 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 weight shoes. Says the headline: Sachin likes his bat heavy, not his shoe.

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The second 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.

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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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But the golden question is that will the campaign make Adidas run? The company expects the campaign to strengthen the image of the brand since research had indicated that neither of the three multinational sports shoe brands present in India had a clear image: most were perceived as diffused brands and personality-led. Says Kanan: Sachin has and will play a major role in pushing the brand. He is important, as there are certain values a consumer needs to know about Adidas. But after a certain duration, we have to present a global perspective too and hence the Forever Sport campaign.
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Interestingly, Adidas claims that it did not want to be caught up in the clutter of the World Cup

promotions-and deliberately chose not to associated with the World Cup. Instead, according to Kanan, the campaign has been broken now to coincide with the peak season (April-June). The World Cup is incidental. Its too large an event to make significance for us, says Kanan. However, the company is maintain a steady and dominant presence in the media during the Cup: strewn over select channels like Star, Discovery, and ESPN are the Sachin ads promoting Adidas. Star News is delivering good value while through Discovery, we can catch the elite

customer, Kanan says. Although Kanan admits that the sports shoe and apparel market is at a nascent stage, he claims that Adidas has grown by over 250 per cent from last year. As a company that takes pride in not joining the price brawl, Adidas does not intend to bring down the prices of its products. Says Kanan, We dont look at driving down the market by

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lowering the price. We are willing to wait for the market to evolve. For Adidas, the real breakthrough, says Kanan, has come through a combination of strategies: signing on Sachin, Leander and Bhupathi; expanding its reach (it opened 45 stores last year); a revamped range which covers a band of price points; and support to the brand. "e built-in value pricing in our products, and supported them through sports icons who are looked up to. We have realized that to have just one good guy endorsing your brand is more important than having several unknown faces, says Kanan The company is enlarging the scope of its business by concentrating on apparel. Apparel is driving the business. Most consumers start experimenting with the brand through apparel, admits Kanan. Essentially perceived as a male brand, Adidas however defends its range by pointing out that currently it has 50 items out of a total of 250, for women.

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Further, Adidas is planning to add 30 new stores this year. Were looking at driving the market through exclusive stores. Says Kanan. The logic is clear: use Forever Sport to ensure sales forever. Never achieved profitability and collapsed under the weight of its own unrealized ambitions. Adidass objective with the new line of footwear is to generate sales leads through its Web site, either through direct purchase or a retailer finder. Villota says that every style of footwear has a story, particularly those endorsed by star athletes, and its these stories that sell the shoes to buyers. While Villota wouldnt disclose how much of Bryants Adidas footwear is sold online, he did say one of three visitors to the Bryant portion of the Adidas site

demonstrated purchase intent by clicking through to the store or to the retail finder. The Adidas - Salomon Executive Board will propose paying a dividend of CC 0.92 per share to the Annual General
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Meeting of Shareholders on May 10, the same amount as in the previous year. 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.

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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 all advertising, 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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Methodolo gy
78

METHODOLOGY
STAGE ONE The project study started with collection of Secondary Data. The sources for the secondary data are as follows: Data Sources News Papers Magazines Internet Press articles on Adidas. Stage Two We visited the Adidas India Ltd., which is located In Mehrauli (new Delhi). We Also Met Some Of The Marketing Executives Information. Who Helped Me Getting The Required

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We Also Got Some of The Information From Resources Of The Corporate Office Like : Company Journals Company Catalogs

The Other

Questionnaire (Structured & Non Disguised) And Other Related Sources. Primary data: We have prepared a questionnaire for the general public asking about the marketing strategy of Adidas, in that particular questionnaire We have asked some question give in finding and analysis section: (the questioner is filled by 80 people).

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Findings and Analysis

81

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% of 2003-2004 revenues; 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 sales of 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

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have the same fiscal year: the most recent data for each company are being used.

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QUESTIONNAIRE 1. What sports do you play in your leisure time? a) b) c) d) e) f) g) h) Cricket Football Golf Jogging Lawn tennis Skiing Swimming Others

50 45 40 35 30 25 20 15 10 5 0

50

10 5
Football Cricket

10 5 5
Skiing Swimming

10

5
Golf Jogging

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Others

Lawn Tennis

In the analysis it is found that 50% of the respondents play cricket in leisure time and Football, Golf 5%, Jogging 10%, Lawn Tennis others 10%. 5% and Swimming 10% and

2. What are the shoe brands you are aware of?

25 20 15 10 5

25

25

25

5
Adidas Reebok Nike Puma

5
Fila

5
Speedo

5
Newbalance

5
sketchers

It is found that most of the respondents aware of Adidas, Nike and Adidas and rest of the respondents aware of Speedo, Fila, Puma Newbalance and Sketchers and Woodland, Leecooper.

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3. How

do

you

rate

the

company

marketing

strategy as compare to the other competitors company like Nike, Reebok etc.? Out of 80 people 36 had said Adidas have a good marketing strategy and should continue like this only, 24 had said Nike is more better then Adidas, 16 said Reebok is good and 4 said others.

reebok 20%

others 5% adidas 45%

adidas nike reebok others

nike 30%

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4.

Do you think that the company Adidas is giving its customer what they want in terms of quality and prices or value for money?

Out of 80 people 68 person are satisfy with the quality and the price of the product and other says that they are not satisfy.
happy not happy

not happy 15%

happy not happy

happy 85%

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5. Do you think that the advertisements and the brand ambassador of the company is good

enough? Out of 80 people 66 person said yes they like the advertisement very much and rest said no they dont like them.

18%

0% happy not happy 82%

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6.

What things you keep in mind while purchasing shoes will it be quality, advertisement, price or design?

Out of 80 people 69 person had said that the product must have good quality and good design and other said they purchase these shoe for status symbol only.

14%

0%

quality other factor

86%

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7.

If you have to purchase shoe except Adidas which shoe it will be and why? Out of 80 people 42 have said Nike, 23 said Reebok and 15 others, which shows that the main competitor of Adidas is Nike. They have given different reason for that some said Nike and Adidas are have same range of products and there quality and prices is also same, so different people have different opinion.

19% nike 52% 29% reebok others

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8. What do you think that the company Adidas must do to improve its marketing strategy? Most of people said Adidas has a good marketing strategy but the company should launch more products or u can say more variety to their products.

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ADIDAS : OVERVIEW / COMPANYS FINANCIAL FACTS For over 80 years Adidas has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, with total net sales of Rs. 60000 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 ever country of the world. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance. The companys share of the world market for sporting goods is estimated at around 15 percent. Internal Environment Analysis It is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. Each business needs to evaluate its Internal strengths and weaknesses periodically. It can do so by using s form like the one shown in the marketing Memo

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Checklist for Performing Strength/Weaknesses Analysis. Managementor an outside consultantreviews

marketing, financial, manufacturing and organizational competencies and rates each factor as a major strength, minor strength, neutral factor, minor weakness, or major weakness. Clearly, the business does not have to correct all its weakness, nor should it gloat about all its strengths. The big question is whether the business should limit itself to those opportunities where it might have to acquire or develop certain strengths. For example, managers at Texas Instruments (TI) split between those who want TI to stick to industrial electronics (where it has clear strength) and those who want the company to continue introducing consumer electronic products (where it lacks some

required marketing strengths). Sometimes a business does poorly not because its departments lack the required strengths but because they do not work together as a team. In one major electronics company, the engineers look down on the salespeople as
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engineers who couldnt make it, and the salespeople look down on the service people as salespeople who couldnt make it. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit.

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Swot Analysis

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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 Adidas is 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
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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 product 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.

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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 use its outlet for the sale of their product but also use some other 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-formoney strategy. The company needs to identify critical success factory and work assiduously towards achieving it.

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Problems that cannot be Solved As the world grows to become one, many problems will arise that cannot be solved. One of the primary

challenges associated with globalization is balancing conflicting and competing objectives. In the case of

Adidas, it has faced such problems already and how they have dealt with them is with flexibility and calmness. Despite what could be higher costs, Adidas has chosen to stick with their human right codes and Standards of Engagement rather than continue to be associated with subcontractors who treat works in inhumane ways. As

Adidas has grown worldwide, it has had to deal with problems of heterogeneity vs. homogeneity. In other

words, in an increasingly heterogeneous and global world, diversity in the workplace has appeared to emerge as an issue. Companies, including Adidas are no longer

homogenous in the sense that their companies have grown worldwide. And as a result, Adidas has had to

make worldwide headquarters and produce information and products in several different languages.
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Having to

spread its workforce, Adidas has come to depend on intangibles. Measuring Intangibles & Valuing Diversity The knowledge, worldwide experience and diversity that an Adidas employee can bring to the table are valuable. Recently, how successful companies are in the global world is increasingly derived from intangibles, such as these, that organizations cannot own. Adidas is greatly

affected by these external influences since indeed it is a global company. For some it is not common knowledge that Adidas is a German company. This is a result of good global business. Adidas has created a product that is

global and with that diversity and knowledge greatly affect the company. Adidas must be able to easily adapt to

different cultures and must be culturally aware when conducting business. The long list of Adidas subsidiaries where it conducts business proves that Adidas is

constantly adapting to cultural changes and must be extremely diverse. Because of this necessity, knowledge is greatly valued.
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Great changes occur in this industry

and as a result, new ideas, intuition and inspiration are an asset that is a necessity in this industry and to remain a global company. Who leads this knowledge and maintains diversity are the managers, yet they too are facing new changes.

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Sales Analysis

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SALES ANALYSIS
During the first quarter of 2005, sales at Adidas totalled 120 billion rupees. This is an increase of 2.7% from the 120 billion rupees in sales at the company during the first quarter of 2004. During the previous 17 quarters, sales at Adidas have increased compared with the same quarter in the previous year. Sales at Adidas appear to have some seasonally: during each of the previous 5 years, sales have been highest during the third quarter, which has accounted for between 28.0% and 32.0% of the annual sales. Adidas reported sales of 320 billion rupees for the year ending December of 2005. This represents an increase of 9.0% versus 2004, when the companys sales were 320 billion Rupees. Sales at Adidas have increased during each of the previous five years (and since 1997, sales have increased a total of 226%).

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RECENT SALES AT ADIDAS

(Figures in Rs. ) (In 10 Lac)

8 6 4 2 0 1999 2000 2001 1.79 2.61 3.62

5.47

6.06

6.53

2002

2003

2004

In 2004, sales in India were up at a rate that was much higher than the company as a whole: in this region, sales increased 36.0% to 110 million Rs. Adidas also

experienced significant increases in sales in Asia-Pacific.

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Competitive Brand & Comparative Analysis

105

LIST OF COMPETITIVE BRANDS AND COMPARATIVE ANALYSIS

1. 2. 3. 4. 5. 6. 7.

NIKE REEBOK FILA SPEEDO NEW BALANCE SKETCHERS PUMA

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COMPETITIVE ANALYSIS
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 (Fortune, 2004) 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

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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

Reebok The main intention behind setting up the company by J. W. Foster was one of the best reasons possible : athletes wanted to run fast. So, in the 1890s, Joseph William Foster made some of the first known running shoes with spikes in them. By 1895, he was in business making shoes by hand for top runners; and before long his fledgling company, J. W. Foster and Sons, developed an international clientele of distinguished athletes. The family owned business proudly made the running shoes worn in the 1924 Summase Games by the athletes celebrated in the film Chariots of Five. In 1958, two of the founders grandsons started a companion company that came to be known as Reebok, named for an African gazelle. By 1981, Reeboks sale exceeded Rs. 65 million, but a dramatic move was planned and in 1982, Reebok

introduced the first athletic shoe designed especially for women; a shoe for a hot new fitness exercise called
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aerobic dance. The shoe was called Freestyle, and with it Reebok anticipated and encouraged three major trends that transformed the athletic footwear industry : the aerobic exercise movement, the influx of women into sports and exercise, and the acceptance of well-designed athletic footwear by adults for street and casual wear. Explosive growth followed, which Reebok fueled with product extensions in which it also became a leader. The freestyle is now a classic and is Reeboks best selling athletic shoe of all time. Reeboks performance aerobic shoes have progressed through several generations. In the late 1980s, Reebok began an aggressive expansion into overseas market. Its products are now available in more than 170 countries and are sold through a network of independent and Reebok owned distributors. Creating innovative products that generate excitement in the market place has been a central corporate strategy ever since Reebok introduced the Freestyle shoe. In the late 1980s, a particular fertile period began with The Pump technology and continues today, with break through
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concepts and technologies for a host of sports and fitness activities. In February 2004, Reebok launched Rbk a collection of street-inspired footwear and apparel hook-ups designed for it and woman who demand and expect the style of their gear to reflect the attitude of their lives cool and edgy, authen aspirational. As Rbk is inspired by todays street fashion, its marketing needed to be culturally relevant as well. A new global marketing campaign, called the Sounds and Rhythm of Sport was launched in January 2004, and it energized industry by blitzing the market with Rbk product launches, television and print ads, consumer and retail promotions, and events. The Sound and Rhythm of Sport global marketing campaign features Reeboks NBA, NFL and teanis athletes paired with the music industrys edgiest hip-hop and rap artists. The television spots showcase the moves and motion of the athlete energized by the rhythm of the artists music.

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In this comparative analysis between reebok and adidas, we have chosen three products each from the two brands and classified out their details.

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COMPARATIVE STUDY WITH PRODUCTS I. CATEGORY : SHOE (REEBOK) Reebok and Unit Casual Shoe Mens (Release Date : Dec. 12, 2004) Item No. : Price : 1387196 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

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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 G6 lifestyle 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 design

115

This 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. NIKE : COMPARISON BETWEEN REEBOK G UNIT CASUAL SHOE SHOES Reebo k 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
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MENS

AND

ADIDAS

SUPERNOVA

T-MAC3

Adidas

Nike

Foot hugging inner bootie Moisture-wicking, ortholite sockliner Carbon rubber outsole Fore foot cushioning Shock absorbing heel Style and design

antimicrobial

117

Limitations

118

LIMITATIONS
Each reports has to have some limitations and restrictions. Hence the report we have made also have some limitations regarding various aspects of the report The Limitations are as follows: Time As far as time is concerned. There was no boundation of time as sufficient time was being provided to all the students for this project report. Time was never a constrain in order to complete the project report. But we could have tried to make report much more better if we would have little more time because of the late availability of the executives of the concerned companies. We got late appointment and due to which I was not able to compile report in time, We was able to complete the report during the last days of the submission of this report, cost factor which restricted met to do anything more creative.

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Though I had tried my level best to reduce the possibility of errors, but if any, We would like to request all the readers to forgive me by considering me as a normal

human being and also take each and every responsibility of possible errors on my shoulders. Miscellaneous Though we have put my very best efforts in making this project report but because of some unavoidable problems and circumstances we had to face lots of problems. Sometimes we didnt get the appointments with the concerned companys executives which further delayed the project report a bit. Secondly, all the required information was not available to me, so we had to put extra efforts in order to get that information. But there could be some information which is still missing. Therefore, we request the readers of the project report to kindly forgive me.

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Recommendati ons & Conclusion

121

RECOMMENDATIONS & CONCLUSION

Turbulent is the word 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.

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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.

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 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 which ADIDAS and 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 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

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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 formoney strategy. The company needs to identify critical success factory and work assiduously towards achieving it.

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Bibliograph y

126

BIBLIOGRAPHY 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

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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.WALKER FUNDAMENTAL OF MANAGEMENT. RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.

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Appendice s

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7APPENDICES ANNUAL GENERAL MEETING 2007 Agenda 1. Presentation Statements of of the adopted Annual AG and Financial of the

Adidas-Salomon

Consolidated Financial Statements as of 31 December 2007. Presentation of the Management Report of AdidasSalomon AG and of the Group Management Report as well as of the Supervisory Board Report for the year 2007. 2. Resolution on the Appropriation of Retained Earnings Voting Results : 13,557,668 YES Abstentions No

The executive board and the supervisory board propose to resolve on the appropriation of the retained earnings amounting to EUR 41,739,375.24 as follows:

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Payment of a dividend of EUR 0.92 per no-par-value share on the stock capital (fully dividend-entitled) of EU

116,093,352. The dividend shall be payable on May 11, 2008. The remaining amount shall be carried forward to new account. Total dividend EU 41, 721, 264.00 Carried forward to new account Retained Earnings EUR 18,111.24 EUR 41,739,375.24

From a tax point of view, a partial amount of EUR 18,549,342 of the dividend will be paid from the EK 40 and does therefore entail corporation imputation tax credit in the amount of EU 9,274,671. The remaining amount is paid from the untaxed EK 01 and does not entail a corporation imputation tax credit. 3. Resolution on the ratification of the actions of the Executive Board for the year 2007 Voting Results: 9,44.097 YES 1.432 No

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578.504 Abstentions The Executive board and the supervisory board propose the ratification of the actions of the Executive Board members for the year 2003, including the members who retired in 2003. 4. Resolution on the ratification of the actions of the supervisory board for the year 2003. Voting Results : 13.006.246 YES 1,272 NO 578.574 Abstentions The Executive Board and the Supervisory Board propose the ratification of the actions of the Supervisory Board members for the year 2003. 5. Election of the Supervisory Board Voting Results: 13.026.283 YES 22.375 NO 556.884 Abstentions
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The Supervisory Board is composed in accordance with Articles 96 section 1, 101 section 1 of the German Stock Corporation Act and Article 7 section 1 No. 1 of the German Co-determination Act. Dr. Thomas Russell, member of the Supervisory Board, has resigned from his office as Supervisory Board member with effect from the end of the Shareholders Meeting on May 10, 2004. The Supervisory Board proposes to the Shareholders Meeting to elect. ADIDAS-SALOMON CONSOLIDATED BALANCE SHEETS DEC. 31 2007 (Euros in 000)

Dec. 31 2007 Cash and cash equivalents Accounts receivable Inventories Other current assets Total current assets 84,995

Dec. 31 2006 104,706

Change in % (18.8) 10.6 (1.6) 5.0 3.3

1,253,193 1,133,103 1,273,062 1,294,033 266,929 254,183 2,878,17 2,786,02 9 5

Property, plant and

133

377,865 310, 068

21.9

equipment, net Goodwill, net Other intangible assets, net Deferred tax assets Other non-current assets Total non-current assets 580,069 91,131 147,873 107,760 601,028 77,633 131,063 112,643 (3.5) 17.4 12.8 (4.3) 5.9

1,304,69 1,232,43 8 5

Total assets

4,182,87 4,018,46 7 0 279,422 532,299 76,318 390,250

4.1

Short-term borrowings Accounts payable Income taxes Accrued liabilities and provisions Other current liabilities Total current liabilities

196,038 629,701 111,020 346,876

(29.8) 18.3 45.5 (11.1)

110,040

90,388

21.7 1.8

1,393,67 1,368,67 5 7

Long-term borrowings Pensions and similar obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities Minority interests Shareholders' equity Total liabilities, minority

1,569,773 1,617,370 92,088 85,021

(2.9) 8.3

41,552 13,019

31,748 10,570

30.9 23.2 (1.6)

1,716,43 1,744,70 2 58,157 1,014,613 9 89,750 815,324

(35.2) 24.2 4.1

4,182,87 4,018,46

134

interests and

shareholders' equity Rounding differences may arise in percentages and totals for figures presented in millions as calculation is always based on the figures stated in thousands.

135

ADIDAS-SALOMON CONSOLIDATED STATEMENT OF CASH FLOWS (IAS) (EUROS IN THOUSANDS) 2007 Operating activities: Income before taxes Adjustments for: Depreciation and amortization (incl. goodwill) Unrealized foreign exchange losses, net Interest income Interest expense Gains on sales of property, plant and equipment, net Operating profit before working capital changes Increase in receivables and other current assets Decrease/ (Increase) in inventories Increase in accounts payable and other current liabilities Cash provided by operations Interest paid Income taxes paid Net cash provided by/(used in) operating activities Investing activities:
136

2006 346,620 132,704

376,344 148,037

15,277 (12,061) 107,772 (4,063)

7,616 (12,979) 108,517 (4,440)

631,306

578,038

(128,157) (115,767)

32,165 71,161

(230,394) 8,014

606,475

239,891

(110,400) (105,313) (112,015) (144,993) 384,060 (10,415)

Purchase of goodwill and other intangible assets Purchase of property, plant and equipment Proceeds from sale of property, plant and

(42,338)

(24,562)

(159,733) (124,815)

23,293

14,141

equipment Acquisition of subsidiaries net of cash acquired Decrease in investments and other noncurrent assets Interest received Net cash used in investing activities 12,061 12,979 (176,936 (120,449) ) Financing activities: (Decrease)/Increase in long-term borrowings Dividends of adidas-Salomon AG Dividends to minority shareholders Capital contributions by minority shareholders (Decrease)/Increase in short-term borrowings Net cash (used in)/provided by financing activities
137

(19,519)

9,300

1,808

(47,667)

132,967

(41,721) (51,349) 0

(41,736) (2,692) 4,970

(88,283)

71,517

(229,020 165,026 )

Effect of exchange rates on cash (Decrease)/Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

2,185 (19,711)

1,436 35,598

104,706

69,108

84,995

104,706

138