Advertisement

Effectiveness & Marketing

Communication of Adidas

Abstract
This thesis discusses how adidas differentiate their communication to reach women and men make the adidas brand more appealing. The adidas brand has always had their main focus on sportswear for men. This has led to the brand being perceived as masculine and it makes it hard for the female consumer to identify with adidas. We have analyzed six adidas adverts from the last five years to see what adidas have communicated to women. The main purpose of this thesis is to understand which branded sport shoes is mostly preferred by people as per their choices in what means. The theoretical chapter is divided into three parts; Brands, Communication and Consumer Behavior. The first part describes what a brand is, how it is built and continues with how a brand can be gendered. A brand is not very likely to keep a strong position if the values connected with the brand are not reinforced through communication. When forming a communication strategy, companies have to understand how consumers behave. When selling a gendered product, companies have to understand the distinction between men and women and how they differ in consumption. Our discussion is based on the qualitative method of collecting data. The qualitative method was carried out through two panel interviews and one personal interview, and we also performed picture analysis on adidas advertisements. Ten open-individual interviews with ten different peoples were conducted to get their opinions on the six adverts. Adidas have presented five different identities over five years, each with diverse focus and with different brand associations. This has led to flexibility in market and therein lays a part of the reason how adidas have been successful in appealing message of brand recognition. Since 2005 adidas have collaboration with Stella McCartney. This is an attempt to add design to adidas functional clothes and to make their brand more appealing. This collaboration will continue until 2010 and this could provide adidas with the uniformity they need.

1

Advertisement

Effectiveness & Marketing

Communication of Adidas

Acknowledgement
The preparation of Thesis on the topic “Advertisement Effectiveness and Marketing Communication of Adidas” would not have been possible without the valuable contribution of institution of ‘IIPM’. I would like to thank Mr. Rahul Chandra Pal, Chief Executive Officer of Neem Tree Productions and his staff for valuable assistance and with whom all the initials was conceptualized. I would also like to thank all the teachers who worked closely with me and compiled all the information and corrected several times over, so as to incorporate the latest data. My special thanks also to Prof. Alpi Jain (Faculty - Marketing) who ably assisted us in consolidating the several changes that the project underwent in spite of critical deadlines. Thanks again, Sincerely, Rakesh Ramkumar Ram Registration Id No.- DF/08/10-M-138 PGP/FW- 2008/10

2

Advertisement

Effectiveness & Marketing

Communication of Adidas

1.1

INTRODUCTION

Adidas is a German sports apparel manufacturer, part of the Adidas-Salomon Corporation. Adidas was named after its founder, Adolph ( Adi ) Das sler , who started producing shoes in the 1920s in Herzogenaurach near Nuremberg with the help of his fellow friend Cody. It registered as Adidas AG on 18 August 1949. The company's clothing and shoe designs typically include three parallel stripes of the same color, and the same motive is incorporated into Adidas' official logos. In 1989 Adidas entered India, license agreement with Bata. In 1996 a joint venture with Magnum International Trading Company Ltd. took place. In 1998 Sachin Tendulkar became a brand ambassador for Adidas; In 1999 Adidas introduced the cheapest range of shoes they had ever sold. In 2001 the first televised advertisement for India: Paes & Sachin were endorsing. In 2004 an advantage for Adidas campaign kicks in 30% growth milestone. In 2005 Andreas Gellner was new MD of Adidas in India. Adidas strategy in India has been consistent over the past few years. The broad elements of the strategy are to target the brand to urban youth with our brand proposition from ‘competition to lifestyle’ using the authentic sports platform and build and reinforce credibility through relevant brand ambassadors and grassroots sports marketing programs. Further, it would target principal consumption centres, namely metros and build significant stand-alone exclusive store presence in significant locations. The strategy would be to play to our strengths, i.e. in apparel and mid to high priced footwear.

1.2

SCOPE OF THE WORK
This project takes a look in various kinds of Merchandising activities, Market Share

of different sports shoes and various Sales Promotion schemes, which are followed in the Sports shoes industry. The three major global players i.e. Reebok, Nike, and Adidas dominate the sports shoes industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition between the three. The companies claim to be in number one sport coating the data produced by two different marketing research companies. Advertisement plays a crucial role in the brand selection, so how much it is impactful in giving the message and attracting the customer to shift and stick to their brand.
3

Advertisement

Effectiveness & Marketing

Communication of Adidas

1.3

RESEARCH OBJECTIVE
1. To know the personal views of “Delhi and NCR regions” people regarding choices

among various branded sport shoes. 2. To study which branded sport shoes is mostly preferred by people as per their choices.
3. Comparison between various branded sport shoes.

4. To find out factor influencing the people at the time of purchasing sport shoes quality,

durability, variety, price, and use in sport or any other.
5. In a time slot trade, debiting an account of a seller and crediting an account of a buyer

in accordance with the terms of the trade. To analyze the cost on advertisement budget.

1.4

RESEARCH METHODOLOGY

Secondary data:There are basically two sources to collect secondary data:
a) Internally: Provided by the company/organization (Neem Tree Production)

b) Externally: Various publication of central, state and local Government. • • Books, magazines, newspapers Internet

After only keeping in mind one can think about what type of data has to be collected during research as our research is concerned I have to gather primary data for Customer preference.

4

Advertisement Effectiveness & Marketing Communication of Adidas Primary Data:Primary data collected through sample survey from the selected elements in malls and super markets.Random Simple Sampling Sample size – 100 Primary data – – Sample While deciding about the sample of research. Sampling plan Sample Methods . So for this purpose I have used the most popular tool of primary data collection through direct communication with respondents. The tools I used are questionnaires. To organize & collect data:Once the researcher has formulated and developed a research design including questionnaire. it is required from the researcher’s point to pay attention to these under mentioned points: Questionnaire Interview 5 . second thing he has to decide how he has to collect the information from all the targeted customers. To decide form of data collection:For this project Survey method was selected which will be carried through interviews because information from different customers will be required.

Market Survey and the market area is: Delhi and NCR c) Sampling size: This refers to the no. it should be optimum. of items to be selected from the universe to constitute a sample. village etc. sampling unit may be a geographical one such as state. analyzed and interpreted to the conclusion reach. To process & analyze data:After the data was collected it was tabulated. The size of sample should neither be excessively large not too small.Sample size in this research is 100. so in this research sampling unit is Delhi and NCR area Malls and Showrooms. Techniques Applied: • • Bar Chart Pie Chart Exploratory Research Research used: 6 . This size of population must be kept in view for this also limits the sample size . This is a major problem before the researcher.e.Advertisement Effectiveness & Marketing Communication of Adidas Sample Units: a) A decision has to be taken concerning a sampling unit before selecting a sample. district. b) Source of data: Data required for the study was collected through primary sources i.

the soccer player Zidedine Zidane and L. global sports events and sport associations. Their advertising agency is called Leagas Delaney and is located in London. Even though Adidas is sponsoring top athletes like tennis player Anna Kournikova.1 PROFILE ADIDAS TODAY As mentioned before Adidas’ headquarters are still located in Herzogenaurach in Germany but Adidas has subsidiaries in 60 countries including adidas USA. 2.A Lakers’ basketball player Kobe Bryant. women and children and for almost all sports available. children 7-15 years old. Adidas has clothes. They strive to have a uniform profile of their brand and all marketing campaigns are globally coordinated. They 7 . They export athletic equipment to 160 different countries and produce 120 000 pairs of shoes and 50 000 metres of fabric every day. To analyze the increase in sales figure on strategically advertising through outdoor. the soccer World Cup and the Olympics as mentioned before. girls/women 15-35 years old and boys/men 15-35 years old. adidas is Europe’s largest supplier of sports apparel and athletic footwear. shoes and accessories for men. The company employs over 14 000 employees worldwide. Adidas have three main age and gender based target groups that they focus on. To interpret the right mix of media that enables advertisers to hit the precise media groups. they sponsor the European football championship. the focus for the company is nowadays towards teams. Today. Adidas can this way connect itself with emotional events in sport.5 HYPOTHESIS Number of Our Advertising Time Slots Available for Adidas Sales Promotion The number of time slots available for our digital TV screens in Live Media during the period presented is calculated by multiplying the time slots Live Media per week by the number of weeks during the period presented when we had operations in each Live Media and then calculating the sum of all the time slots available for each of the our network Live Media. celebrity endorsement of product Adidas. 2.Advertisement Effectiveness & Marketing Communication of Adidas 1. print.

The top five priorities are football. adidas heritage and adidas style. running. adidas Golf and Maxfli. 8 . Ian Brown and remakes of vintage adidas clothes. has become a more than € 1 billion segment for adidas. started in 2000.2 COMPANY SEGMENTS The adidas group own several different brands. Sports Heritage includes lines designed by Missy Elliott. Adidas has quite recently bought Reebok International and the adidas group is also in possession of the golf brand Taylor Made. This division. Adidas Heritage This line targets trendsetters who seek sport-inspired street wear with an authentic origin. tennis and training. basketball. Selective distribution to prevent dilution of the brand plays a major role in the development of this division. Adidas Sport Performance This brand is aimed at meeting the sport-specific needs of athletes at all performance levels. (Aaker and Joachimsthaler. Adidas has changed their image from just targeting elite athletes and is now more about participation. The main adidas brands are however adidas sport performance. we will mainly focus on adidas performance in this thesis but we will give a short presentation of the other brands as well. 2010) 2. This line of sportswear is focused on offering functional and innovative products that are designed for sports.Advertisement Effectiveness & Marketing Communication of Adidas also sponsor national and local teams around the globe.

3 CONSUMER BEHAVIOR As the young Indian executive class matures in terms of quality. fashion oriented sportswear products. is influential designs combined with the highest quality standards. developed with designer Yohji Yamamoto. The brand is created because of the increased importance of niche marketing and that successful brands are those that can reach not only larger audiences but also small and influential ones. However. With respect to the rest of the world. design and brand. The Y-3 collection. The footwear retail segment is currently one of the most organised sectors within the retail domain.Advertisement Effectiveness & Marketing Communication of Adidas Adidas Sport Style Sport Style focuses on young cosmopolitan consumers who look for exclusive. this is purely due to the highly organised nature of the men’s footwear segment. this is an anomaly as the women’s 9 . in fact close to 95% of the category is unorganised. This division is entering its fourth year in 2006. 2. the preference will be more towards branded footwear and the growth is expected to be high in this segment with the migration of people from villages to cities for better career and profession. The women’s category is largely unorganised. in other words haute couture by adidas.

Advertisement Effectiveness & Marketing Communication of Adidas category is majorly organised and forms a big chunk of the market. The Tier II and Tier III towns have over the last few years seen a spurt in income driven by the service industry boom. we rose to the challenge. Revenue in 2009 fell 6 percent to euro10. 3. 2009 was the most difficult year during my time as chief executive”. 10 . Herbert Hainer said in the report. said rising purchasing costs and currency effects were the main reasons for the decline in net income. Hence these towns definitely are a potential target. the market is still largely untapped and hence a big opportunity for growth. However. the world's second largest sportswear company by sales after Nike Inc.5 billion. we generated a 141 percent increase in net cash from operations for a record euro1. Hainer said.8 billion.. partly pushed by this year's football World Cup in South Africa. Hainer said Adidas was starting the New Year with growing optimism and aiming for a sales increase.4 billion from euro10. At present. This is definitely the outstanding achievement of the year and a credit to all the hard work and dedication of our employees. almost all of the organised retailers in the women’s footwear category are located in the metros and Tier I cities and towns. For the whole of 2009. net income fell 62 percent to euro245 million from euro642 million. currency effects and a drop in demand during the downturn. “With no doubt. The Herzogenaurach-based company earned euro54 million in net income during the October-December period of 2008. 3. Thus for us as retailers in the women’s footwear category. Adidas. Revenue for the fourth quarter of 2009 was steady around euro2.1 LITERATURE SURVEY CONCEPTUAL REVIEW (FIFA WORLD CUP-2010) German sportswear company Adidas AG said Wednesday its fourth quarter net income declined 64% to euro19 million ($26 million) on rising purchasing costs. Despite a 53 percent decline in operating profit.2 billion.

"India has a strong base for apparel manufacturing and along with that there is a cost advantage in manufacturing and exporting products from India. The news sent shares of Adidas 5 percent lower to euro36. Although we have not yet finalised the details of the centre.22 in 2008.12 in Frankfurt morning trade. managing director. hosted by Germany." The company has short-listed several locations in the country for setting up the facility. Adidas was able to add more than euro1 billion to its top line. the company forecast some lower operating and interest rate expenses. through sales of football equipment like jerseys.90 and euro2. Adidas brands include TaylorMade-adidas Golf.Advertisement Effectiveness & Marketing Communication of Adidas During the last World Cup in 2006. cleats and balls. 3. which would serve as a base for its global requirements. 11 . However. Rockport and Reebok-CCM Hockey. he added. the procurement division is looking at setting up an apparel manufacturing facility in India. marketing and sales division. The company has planned to set up a production facility for apparels in the country. Christophe Bezu. the company said it expected a slow turnaround in consumer spending in 2010 and only a low to mid-single-digit increase in sales. "As part of the company's global strategy. said.2 ADIDAS PLANS TO MAKE INDIA PRODUCTION HUB Global sportswear major Adidas is looking at India as a global manufacturing hub." Andreas Gellener. chief executive officer.15 from euro1. said. a decision will be taken in the near future. as fans snatched up garb during the month long tournament. Adidas. Adidas India. which should push earnings per share to a level between euro1. Asia Pacific. Despite the expected sales kick from the event.

"Our initial strategy did not bring desired results as we felt that our distribution network." The company has launched a new range of cricketing shoes. Therefore we are looking at launching him in these markets as he is perhaps the most popular name in cricket. which is currently the main procurement centre for the Asia Pacific region. Muhammad Ali. The company is planning to set up more outlets to strengthen its distribution network. asset management and company structure were not very strong. We have formulated a new marketing plan. said. which will also be marketed through advertisements including Tendulkar. The company is planning to reinforce its distribution network by setting up more outlets across the country. Ian Thorpre among 10-12 other Adidas's global ambassadors. "For marketing the Master Blaster range of cricket shoes in the cricketing regions." Andreas Gellner. Adidas India said. "Tendulkar has an incredible recognition value in countries where cricket is popular. chief executive officer. "We are looking at segmenting our range of products systematically and will introduce new 'localised' models. Adidas is the first global company to borrow an Indian name to sell its products outside the country." Bezu said. 12 . Christophe Bezu. The company is also planning a recruitment drive to "reinforce our team in India". managing director. His inclusion stems from his caliber as a global athlete and his potential to become a global ambassador for Adidas." he added. Sachin unveils new Adidas shoes Adidas has included Sachin Tendulkar in its global campaign "Impossible is Nothing" and plans to feature him across cricketing nations and the Asia-Pacific region.Advertisement Effectiveness & Marketing Communication of Adidas Adidas has a large manufacturing base in China. Adidas. Asia Pacific. which addresses all these issues. The campaign also features David Beckham. Adidas is also revamping its marketing strategy for India. we will be providing creative inputs which feature Tendulkar. range management.

The sports goods franchise is a consumer focused organization and therefore wishes to continuously improve the quality. 3. The sportswear business organizational structures match and exceed consumer expectations to provide them with the highest value. The Group is committed to continuously strengthening its brands and products to improve the competitive position. The combined strengths aim to widen the profile we have with consumers and enhance brand profitability by execution of a well-defined strategy. A consumer-driven company that does everything strengthens and develops its brands to maximize the Group’s performance. The Group is a innovation and design leader who seeks to help athletes of all skill levels achieve peak performance with every product we bring to market. as a part of the Adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a obsession for sports and a sporting lifestyle.3 VALUES AND STRATEGIES OF THE ADIDAS INDIA MARKETING FRANCHISE The Adidas India Marketing franchise. The acquisition of Reebok extended its global position.Advertisement Effectiveness & Marketing Communication of Adidas Although the current campaign will feature Tendulkar only in the cricketing countries and the Asia Pacific region. Dedicated to consistently deliver outstanding financial results. gaining a broader presence in key markets. 13 . look. product categories and consumer segments. the Group’s goal is to lead the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. The integration of Reebok has given the Group additional insights to the best-in-class techniques and processes across its entire organization. the company is looking at including him in its other global campaigns. creative and financially rewarding for our employees and shareholders. It is a global organization that is socially and environmentally responsible. feel and image of its products.

managing director. Adidas India Six years into India. However. As part of that plan. Adidas opened its first RMC-managed store at Brigade Road (Bangalore) in October. but then it did make amends by reworking its India gameplan and making itself available across price points and in more ranges. What was the logic behind the move? How does it fit into the long-term brand building efforts of Adidas in India? A. So we started our retail stores in the significant cities and locations.Advertisement Effectiveness & Marketing Communication of Adidas 4. And sports retail is even farther from that. such as those for women and children. the company registered 30 per cent growth last year and is looking to break even next fiscal. Managing Director. Adidas India. Adidas India Marketing embarked on a retail initiative under which it roped in Retail Management Consulting (RMC) to manage its exclusive stores. Q. tells Sumita Vaid Dixit of agencyfaqs! how his company set about correcting its early mistakes and outlines his agenda for Adidas' growth in India.1 RECENT CONVERSATION WITH DAINIK JAGRAN Tarun Kunzru. 14 . Late last year. Adidas India Marketing has gotten real. The company might not have read the market signals right when it first hit the dirt tracks. 43-year-old Tarun Kunzru. In this interview. we need to create something new. THEOROTICAL REVIEW 4. A difficult industry climate notwithstanding. we realised that if Adidas has to provide a good retail opportunity to customers. I will pull back on this question a bit and say that retail in India has not come of age as yet.

Do you plan to replicate the RMC model elsewhere? A. Q. they do manage to get a couple of people aligned with them because of their zeal. And the reason to open an outlet at Brigade Road (Bangalore) was just to grab an opportunity that happened to come along at that point in time. it is about growing the number of people who visit the Adidas stores. Despite not having a large organisation. put them on the job. A case in point is our extremely successful store at Ansal Plaza (an upmarket shopping mall) in Delhi. About 55 per cent of our annual turnover comes from the 80 Adidas stores. which would undertake the task of hiring the right kind of people.Advertisement Effectiveness & Marketing Communication of Adidas Right now we have about 80 exclusive stores in India. For example. we use entrepreneurs. Retail investment is an integral part of our brand image strategy. who have a great drive to succeed. we would talk to RMC for more such stores. if the experiment at Brigade Road is successful. What about your investments in the retail business and expansion plans? A. though. We are going to use what works. 30 are Adidasmanaged stores. the response (to the RMC-managed store) has been positive. The quality of service is equally important. It is not about selling. Of these. They are doing a great job! But yes. Our products need a certain amount of interaction with the consumer in an environment that is 15 . We do not believe in putting all our eggs in one basket. A significant amount of investment has gone into our retail business. We understand that retail is a very important part of our business. I must say that this is not the only format that we use for retailing. Q. And it will be tailor-made for that situation. So we decided to hire the services of RMC as an experiment. While it is still early days for us. I would not like to quote the exact number. It is a big challenge in India to provide good customer service along with effective management of stores on a day-to-day basis. But having great real estate is not enough. train them right and deliver the needs we have. However. We thought one of the ways of doing this was through a professional organisation like RMC.

That's when we started getting our act together. It is not part of the plan as of now. From that standpoint retail investment is an integral part of our brand image strategy.Advertisement Effectiveness & Marketing Communication of Adidas conducive to his purchase decision . we also understand that locations are moving targets.in terms of having prior knowledge of the market .especially since our product is not an impulse purchase product. Let's put it this way. We merely existed. It is not about selling. but we were the last to have come in in a really aggressive way. I would say it was a back-burner operation.basically take equity position and present Adidas the way it is seen in the rest of the world. Having said that. Till one day Adidas decided that it needed to do something about this market. Our strategy has been to cover all important cities and significant locations. But we do not plan to have a thousand retail outlets for Adidas. it is about growing the number of people who visit the Adidas stores and getting them to know Adidas in the right way. Despite having a headstart . How would you explain this? A. but that was a weak representation of Adidas. nobody actually noticed Adidas in India. We entered India with very basic die-cut shoes and there wasn't much excitement around the brand either. We realised that we needed to take control of our destiny . The rules and regulations at that point in time were very different. We entered India with very basic die-cut shoes and there wasn't much excitement around the brand either. Our Hong Kong team had done this deal with Bata.Adidas seems to have fallen behind later entrants like Reebok in terms of marketshare. Adidas was the first among the major international sports shoe marketers to have entered India through a licensee agreement with Bata. Q. 16 . we were the first to have come into India. The economy was opening up and that represented a big opportunity. We are going to try to get into these new locations as well. We entered India through a licensee arrangement (Nike is still a licensee). Significant locations come up over time. I would say it was a back-burner operation. Yes.

to our collection. Plus all the designs are contemporary.serious sports. First of all. two years ago. today we cover virtually every significant sports category that exists in India. Our retail push has also been very successful. today we have the whole range of apparel . So how have you gone about wiping out the negatives? A. fuddy-duddy. Old. Indeed. we have the best retail locations in India today. Clearly. performance wear to equipment apparel and lifestyle. we had about 30 to 40 kinds of shoes. Apart from these. And we have been successful in wiping out the negatives. When we were with Bata we did not have apparel. we have close to 180. We started setting up our retail stores some four or five years ago and we've kept changing the interiors of our stores to avoid fatigue.from serious sports to lifestyle. The ambience of our stores is very attractive. we laid out the Adidas range very aggressively and kept on building on the range. There is much more excitement around the brand today and it is more lifestyle driven. We've signed on the biggest sports personalities in India . And our youthfulness has started showing in our customer service. we were linking ourselves strictly with serious sports. For example. Today. We want to make products that sell. Initially.as brand ambassadors of Adidas. we have done things that are not visible to the consumer.like sunglasses and watches . Q.Advertisement Effectiveness & Marketing Communication of Adidas That entailed a lot of homework because Adidas was actually carrying a negative image in India. Leander Peas and Mahesh Bhupati . it's-my-grandfather-kind-of-brand etc. We have recently added accessories . Alongside. We have a strong and youthful organisation. We do not take our eyes off the ball when it comes to giving the right value for money. Now we have covered the whole expanse . 17 . Whatever is being sold elsewhere in the world is being introduced in India at the same time. we've worked on revamping our association with sports stars.Sachin Tendulkar. But as a management guy I can tell you we have hired some very good people recently.

You are absolutely right when you use the word 'perceived'. One big problem that most MNC shoe marketers face in India is their perceived expensiveness vis-à-vis local brands. "Have you not seen Schumacher changing his tyres after every 28 laps of the race. Consequently. "Well. I will make a one-line answer to this. He could have bought a truck tyre instead. "A pair of sports shoes I bought earlier lasted more than two years. Therefore. One of the classic lines I recall is about this customer who came to an Adidas showroom and inquired. Having said that we do not take our eyes off the ball when it comes to giving 18 . Will your shoe last that much?" I replied. Doesn't this end up arousing consumer suspicion about the actual price of the product? Also. "No. people are getting what they are paying for. And he wouldn't have won the race. the cost of manufacturing is that much higher. No. We are making a product for sports performance. But the concept of perceived expensiveness is changing quickly." To that I said. we have built over the last five years and in-house. And it is not uncommon to see these marketers flogging excess inventory at seconds' outlet. I cannot guarantee you that." He persisted." The point is we do not make shoes to last more than three years. People no longer perceive our offering as expensive but understand the value for money. But then his car might have crashed and he would have got hurt. And people who are looking for real comfort and real performance know they are not paying unreasonable amounts of money. we did not gain any consumer insights from our association with Bata. It depends on how much you use it.Advertisement Effectiveness & Marketing Communication of Adidas Q. when you retail your product at a third of its original price. doesn't it undercut the 'premiumness' of the brand? A. It's got everything you can ask for. Referring to your earlier comment that your licensee arrangement with Bata was but "a weak representation of Adidas". At the end of the day we are selling a technology product. are you saying that the arrangement didn't benefit you at all? A. I paid one-third the money compared to the cost of your shoes and it lasted me for more than two years. we make shoes for you to perform. Q. Whatever consumer insights we have built.

It is impossible that every variant is going to be as successful as the other. About 80 per cent of Adidas India's sales is purely for its lifestyle value. exercising is becoming a way of life. it does not work like this. However. And brands like Adidas deliver that 100 per cent. They make shoes for a different reason and therefore they are priced differently.Advertisement Effectiveness & Marketing Communication of Adidas the right value for money. but the reality is that you cannot compare apples to oranges. Do you see the average Indian's attitude changing with the entry of so many specialised shoe marketers? In which age group have you seen the biggest change happening? A. So next year our communication will move away from serious sports. To remain current we have this back up system of seconds' outlets. we want to make products that sell. So we need to have factory outlets to get rid of the unsold stuff. I would really like to sell my products in the regular stores. Our business is about sizes and colours and we have a huge number of variants. I think affordability is a big criterion. In India. Wearing a nice. Another issue is the average Indian's queer apathy towards sports or any kind of physical activity. Q. the purchasing population is skewed 19 . While the awareness level of footwear like Adidas has significantly risen in the 10-plus age group. Agreed we are not 'cheap' relative to some local brands. comfortable shoe that makes you look smart can actually change the experience of exercising. Now coming to you second question. And you might as well enjoy doing it. that is changing. People are coming round to the view that it is very important to be physically fit if you have to deliver mentally. We obviously do not want to make expensive products. selling at seconds' outlets is a worldwide phenomenon. To that extent you are right. the concept is relatively new. full of colour. 'Apathy' is not the right word. The local manufacturers are catering to a different set of consumers. Unfortunately. And it does not give me great pleasure to sell products through the seconds' outlet. I would say there is no passion for fitness. In our urban environment.

It is pitched on lifestyle. What's going to happen next year is that we may tweak our strategy slightly. In fact. Because about 80 per cent of Adidas India's sales is purely for its lifestyle value.our communication will move away from serious sports. But we are very smart with the way we spend our money. teenagers are increasingly driving their parents into the store. The fact that the Adidas account is prestigious is true and that we do not spend much is also right. 20 . Q. Since all programmes that we wanted to be on were not getting the desired viewership.Advertisement Effectiveness & Marketing Communication of Adidas towards a higher age group. In short. Leander Peas to various Adidas stores in the country. we would be spending bigger amounts of money. But yes. It's been more like perspiration. blood. Our new advertising is more fun. Has Adidas deliberately gone low-key so far as mass-media advertising is concerned? Don't you think this lack of visibility has impacted the image of Adidas as a happening brand? A. Therefore we redirected our efforts into retail and focussed on grass root level activities like organising visits of Sachin Tendulkar. success and win. last year we had planned a big campaign but we pulled out because of September 11. both domestic and international advertising of Adidas is changing to lifestyle and attitude. The first Sachin film was very serious…cricket and black and white colours etc. Had the Indian operations been a billion-dollar company. Our advertising has been more serious and puritanical in the past. we did not see any point in wasting our money. we are spending about 2 per cent of our annual turnover on advertising. The recent Sachin-Leander ad is an example of that. the company does not splurge so much in terms of sheer advertising spends. But as of now. What has been the crux of Adidas' advertising strategy in India? When one talks to advertising agencies one gets the feeling that though Adidas is a very prestigious account. But now we have changed all that. Adidas India's ad spends are proportionate to the size of the business. The comment that we are not visible on TV lately is also true.that Adidas is trendy and fashionable . While the focus will remain on the brand's image .

there is a definite need to make sure that the POP is very exciting. And if you are. However. celeb endorsements or plain vanilla promo efforts? A. A consumer can experience the brand in different ways. At the end of the day you are not buying a product like shampoo which is going to last you a month or a few weeks. which is very relevant for the sports industry. Buying a pair of Adidas shoes requires a higher outflow of cash. the company shifted its ad account last year from RK Swamy/BBDO to McCannErickson. Even if the consumer does not buy your product. Internationally. We also realise that a significant part of the brand impression is created at the time of purchase. you would relate to the brand. event sponsorships. when the consumer wants to buy shoes. Adidas has changed its advertising agency recently. You could be 80 years and be young. What works better for marketers of your kind of products . he would think of Adidas.high decibel top line advertising. Q. is the brand ambassador. Both are equally important. it is imperative to make an informed decision. You could be 80 years and be young. Do you think another round of realignment in such a short span of time makes sense? 21 . And if you are. introduction of new products etc. at least he should go back with the feeling that it was an interesting retail experience. We have done that quite effectively by signing on the best sports personalities. you would relate to the brand.between 14 and 24 years but the central theme of our advertising is to capture 'youthfulness' irrespective of biological age. Each one plays its own role. For that. We want to help consumers achieve that. It is a heady mix of all of this.Advertisement Effectiveness & Marketing Communication of Adidas We advertise to communicate with a certain age group . So that there is more than a fair chance that next time. Q. So when we have a fresh introduction every quarter. Our advertising aims to capture 'youthfulness' irrespective of biological age. We use thematic advertising through TV to build the brand image and tactical advertising to talk sales. The other element. in India.

Which means we may have to move the business to TBWA Anthem here. there is no change. bright. I think we will be bigger and better as we go forward. the best in retail experience and one of the best places to work for in this industry. And we will be able to achieve all this if we continue to operate the way we are doing right now. 22 . It's not just an issue of market share and turnover. we want to be profitable. They did a good job. So we thought McCann-Erickson would be an interesting association to drive down that agenda both below the line and above the line. we are very happy with McCann-Erickson. It's just that we wanted to change the way we dealt with the brand. And we have struck a good deal. But next year we hope to break even. at the end of the day. But. and that too under very difficult conditions. So are we are pretty pleased with our performance. as of now. Adidas and McCann-Erickson know each other pretty well. All I can tell you now is that we are averaging a growth rate of 25 per cent year on year. there has been a global realignment in favour of TBWA. Q. Last year we grew by 30 percent. Simply put. We will see what the risks and the benefits are and we will deal with the issues accordingly. How do you assess your long-term future in India? Where do you see future growth of Adidas coming from . In all fairness to TBWA Anthem. Right now we are not. As for now. We want to pride ourselves as the best customer service provider. However. We have not met them and they have not even made a pitch. so it is obvious we would want to keep that going provided we can help it. The fact is that Adidas and McCann-Erickson know each other pretty well. The reason why we shifted from RK Swamy/BBDO to McCann-Erickson was not because we were terribly unhappy with RK Swamy/BBDO.shoes or apparel? A. so we would want to keep that going provided we can help it. though we are in discussions with TBWA internationally. And probably one of the coolest brands. we know nothing about them in India. We ran our full course with them. We have struck a good deal.Advertisement Effectiveness & Marketing Communication of Adidas A. They are passionate about the brand.

6% less of the Reebok India Pvt. 67.845 Effectiveness & Marketing Communication of Adidas Total Clicks/Month 1. the lower end of the market is dominated by home-grown players as well as unorganised players. children's (11%) and women's lifestyle footwear (41%) is not behind in the race. While men's footwear is the biggest target category (contributing almost 48%). Retail footwear segment in Indian is very price sensitive and has been steadily growing over the year. While international brands largely dominate the higher end of the spectrum.2 SALES AND MARKET SHARE FIG 1: Source: Euromonitor-Footwear-India-October 2010 The sales and market share of Adidas India Marketing Pvt. 4.Ltd.52 The above table gives a picture of Advertising effectiveness in making profit through brand recognition in masses. 55. was found of about 3. It has spontaneous growth from the Previous Fiscal Year. Major part of the demand is met by the unorganised sector and still there is a shortfall of 300 million pairs.51.606 Average Ad Position 2190 Average Cost/Click Rs. Ld. 23 . Branded shoe market only account for 20% of the entire market.Advertisement Advertising Activity Monthly Ad Budget Rs.21.4% which is 0.

800 from an adidas store. Kolkata. which is one of the official sponsors of Euro 2008. bags. The Economic Times. headgear and accessories. The company is also planning to launch an apparel and accessories collection named after Indian tennis player. Adidas. From fig. as the largest soccer tournament in Europe began on June 7. Chennai and Bangalore. 2008. The collection will target customers in the 15-27 age groups. Sania Mirza. To be introduced in September 2008. considers football as another sport after cricket that can help enhance brand value in India. Source: The Press Trust of India Limited. The company will also undertake major expansion by establishing nearly 160 new stores and setting footprints in 140 cities across India in 2008. and prize contest for customers making purchases of more than Rs 2.3 TRENDS AND STRATEGIC INITIATIVES Adidas lines up a series of campaigns across its 350 stores in India for Euro 2008. outdoor hoardings. plans to launch an apparel and accessories collection named after Sania Mirza– June 06 Sportswear and Apparel Company adidas is betting big on the Euro 2008. Mumbai. The company tied up with music channel MTV India to bring 'The Finger Football' tournament at adidas stores in five major metros of Delhi. and comprise apparel. lifestyle articles. the products under the Sania brand will be sold worldwide through adidas stores.1 ‘The Finger Football tournament’ involved playing the game with little paper footballs with two fingers in a miniature field put up inside the stores.Advertisement Effectiveness & Marketing Communication of Adidas 4. sporting gear. messaging. The campaign included a retail splash with Euro 2008 products such as footwear. Indian Business Insight 24 .

Advertisement Effectiveness & Marketing Communication of Adidas 5. DATA ANALYSIS AND INTERPRETATION “WHICH BRAND DO YOU PREFER” Brand Reebok Adidas Action Nike Others Percentage 34 28 9 26 3 Frequency 34 28 9 26 3 COMMENT: Most of the people prefer to wear shoes of Reebok brand but on the slighter down side Adidas is on race to grow. “ARE YOU SATISFIED WITH THE QUALITY OF PREFERD BRAND” 25 . A.

“IF PRICES OF YOUR PREFERED BRAND INCREASES WILL YOU PURCHASE AGAIN” 26 . B.Advertisement Effectiveness & Marketing Communication of Adidas Brand Reebok Adidas Nike Percentage (%) 65 44 42 Option Yes Yes Yes COMMENT: Most of the people in surveyed region were satisfied with their brand. “ARE YOU SATISFIED WITH THE PRICE RANGE” Option Yes No No Comment Percentage 64 19 17 Frequency 96 29 25 COMMENT: Price does not seem any obstacle in the way of consumers. Most of the people were happy with given price range. C.

Advertisement Effectiveness & Marketing Communication of Adidas Brand Same Brand Cheaper Brand Any Other Brand Percentage 58 16 26 Frequency 87 23 40 COMMENT: Increment in price affects the trend and market of the “branded sports shoe”. “HOW DO YOU CONSIDER THE IMPORTANCE OF SPORTS SHOES” 27 . D.

rather than price. durability etc.Advertisement Effectiveness & Marketing Communication of Adidas Importance Comfort Price Durability Use in Sports Any Other Percentage 68 4 16 10 2 Frequency 102 6 25 15 2 COMMENT: The main ground on which shoe being purchased is the quality of the shoe. E. This indicates the quality preference among consumers. “WHAT FACTORS INFLUENCE YOU TO GO FOR A PARTICULAR BRAND” 28 .

Advertisement Effectiveness & Marketing Communication of Adidas Influence Quality Price Durability Variety Any other Percentage 74 5 13 8 0 Frequency 111 8 20 11 0 COMMENT: People in the surveyed area mostly preferred the quality of the brand instead of price and durability. F. “DO YOU NORMALLY SWITCH OVER THE BRAND” 29 .

G. “IS THERE ANY EFFECT OF ADVERTISEMENT ON SELECTION OF BRANDS” 30 .Advertisement Effectiveness & Marketing Communication of Adidas Option Yes No Percentage 44 56 Frequency 66 84 COMMENT: Most of the people were not ready to switch over from their brand.

“WHAT KIND OF PROMOTIONAL TOOL YOU PREFER” 31 .Advertisement Effectiveness & Marketing Communication of Adidas Option Yes No Perentage 69 31 Frequency 104 46 COMMENT: Advertisement plays a crucial role in the brand selection H.

Advertisement Effectiveness & Marketing Communication of Adidas Option Lucky Coupon Free Gift Discount Buy One Get One Free Percentage 11 14 60 15 Frequency 14 22 91 23 COMMENT: Respondents were more inclined towards the discounts package in company’s promotional tools. “WILL YOU BUY PREFERED BRAND AT LOW COST OF NEGLIGIBLE QUALITY” 32 . I.

“IS THERE ANY IMPACT OF CELEBRITIES ON YOUR PURCHASING” 33 .Advertisement Effectiveness & Marketing Communication of Adidas Option Yes No Percentage 23 77 Frequency 34 116 COMMENT: Most of the people do not want to leave their preferred Brand at the cost of “low prices” J.

Advertisement Effectiveness & Marketing Communication of Adidas Option Yes No Percentage 52 48 Frequency 79 71 COMMENT: Celebrities have a special impact on the mind of the consumers that affects the purchasing sense of consumers. K. “WILL YOU PURCHASE ANOTHER BRAND OF SAME QALITY WITH LESS PRICE” 34 .

L.Advertisement Effectiveness & Marketing Communication of Adidas Option Yes No Percentage 70 30 Frequency 106 44 COMMENT: Consumers look more brand loyal as they are not ready to leave their brand for other brand of same weightage. “DO YOU THINK WEIGHT IS A FACTOR FOR CHOOSING A BRAND” 35 .

6.1 RESEARCH REVIEW 36 .Advertisement Effectiveness & Marketing Communication of Adidas Option Yes No Percentage 83 17 Frequency 125 25 COMMENTS: Weight proved its importance in purchasing of the shoe. Most of the users Preferred to wear lighter shoe. CONCLUSION 6.

Probably it could be because of the aggressive attention snatched by brands like “Nike” and “Adidas” especially in India. 9. 5. 6. 6. The new stuff of the adidas is attracting the consumers more which might lead adidas at the top spot in the pack in coming financial year. Only 8% market has been covered by Reebok in Recent past. 7. Consumers are not showing that kind of craze in Reebok for past few years .2 SUGGESTION 37 . 11. 12. 2. 3. 28% customers are still pro adidas believer. 4. 34% market capture is still under its kitty.Advertisement Effectiveness & Marketing Communication of Adidas After assessing the overall market scenarios what came in picture was as follows: 1. 8. People are still expecting something more from Nike. Adidas is chasing its position most aggressively so now it requires maintaining its position with new stuff. 10. Consumer reactions suggest that Nike is the market leader among all its close counterparts in the sports shoe and apparel segments. Nike has been the major competitor for adidas. Reasons being its restrictive manufacturing in India. That is miserable as per its Standard. After its sponsorship to major sports events and Teams like soccer in Europe and cricket in India give it an extra edge. and the cost of the products are not affordable as compared to European and US market.

When forming a communication strategy.4 FUTURE SCOPE The average growth in the industry has been estimated at 12% and is estimated to touch Rs 47000 crore by 2025. The ladies and kids segment is one of the fastest growing segments in the branded footwear market and many foreign brands like Catwalk have ceased the opportunity and have set their footprints in this segment which has been untapped by major traditional Indian footwear brands. companies have to understand how consumers behave. Presently the Indian organised foot wear market is dominated by men’s footwear segment that contributes for nearly 60% of the market where the casual footwear has been better off with two thirds of the share in the men’s segment. 38 . 6. 6. 2. It is vital to our purpose to find out how and why companies choose to communicate their brands. A brand is not very likely to keep a strong position if the values connected with the brand are not reinforced through communication. companies have to understand the distinction between men and women and how they differ in consumption.3 LIMITATION 1. That sounds good for international as well as domestic market. The unorganised players have the lions share in the ladies and kids segment with 80 percent share. The organised footwear brands have less penetration in the ladies footwear segment mainly due to the complex buying behaviour of Indian women. When selling a gendered product. The company can only satisfy their target group once they know how the consumer thinks and react to the conveyed message.Advertisement Effectiveness & Marketing Communication of Adidas “The bottom line” of the market research speaks that branded shoes in india has been increasing on day by day basis.

5 CONCLUSION The business models of the Adidas have been different with a wide popularity of stores in high streets. widen their risk appetite and increase their market share in the footwear segment by contributing to newer growing consumer segment which will boost the bottom lines of the retail players. Thus it improves its advertisement effectiveness and marketing communication in better understanding of changing generation. 6.Advertisement Effectiveness & Marketing Communication of Adidas Considering this many of the Indian footwear brands have seen growing opportunities in the segment to widen their product portfolio. malls and new formats such as store in store has been catching up even with international brands having gone the store in store model which has been the most cost effective model in terms of testing the markets. 39 .

1 Do you prefer wearing sport shoes? 40 .Advertisement Effectiveness & Marketing Communication of Adidas ANNEXURE QUESTIONNAIRE Q.

7 What factors influence you to go for a particular brand? (a) Quality (c) Price (e) Any other (b) Durability (d) Variety Q.8 Do you normally switch over the brand? (a) Yes (b) No 41 .3 Are you satisfied with the quality of preferred brand? (a) Yes (b) No Q.6 How do you consider the importance of sport shoes? (a) Comfort (c) Durability (e) Any other (b) Price (d) Use in sport Q.2 Which brand you prefer? (a) Nike (c) Reebok (e) Any other (b) No (b) Adidas (d) Action Q.5 If the price of your preferred brand increases will you purchase again? (a) Same brand brand (c) Any other brand (b) Cheaper Q.4 Are you satisfied with the price range of preferred brand? (a) Yes (c) No comment (b) No Q.Advertisement Effectiveness & Marketing Communication of Adidas (a) Yes Q.

11 Are you willing to buy the preferred brand at lower price with Negligible quality? (a) Yes (b) No (b) Free gift (d) Buy one get one Q.Advertisement Effectiveness & Marketing Communication of Adidas Q.9 Does the advertising play any role in selection of brands of shoes? (a) Yes (b) No Q.10 What kind of promotional tool you prefer? (a) Lucky coupon (c) Discount free Q.12 Is there any impact of celebrities on your purchase of sport shoes? (a) Yes (b) No Q.14 Do you think weight is a factor for choosing brand? (a) Yes (b) No 42 .13 Will you purchase another brand of same quality with less price? (a) Yes (b) No Q.

Advertisement Effectiveness & Marketing Communication of Adidas BIBLIOGRAPHY BIBLIOGRAPHY 43 .

com 44 .adidas.wikipedia.com www.com www.google. Beri By: Boyd and Stasch By: Philip Kotler INTERNET: www.Advertisement Effectiveness & Marketing Communication of Adidas The lists of reference for the purpose of completing this marketing project are as given below: BOOKS: Marketing Research Marketing Research Marketing Management By: G.com www.bambooweb. C.

Sign up to vote on this title
UsefulNot useful