EXECUTIVE SUMMARY

My project topic is "Adidas" which is a shoe company and I am analyzing its Marketing Strategy. I have chosen this particular topic mainly for two reasons. Firstly, since my childhood days I had great interest in the shoes and I like to buy new shoes as and when it comes in the market. The Shoe Company that I most admire is Adidas. Secondly adidas grows as one of the best leading brand in the shoes and other accessories which is admired by all types of generation. Hence I have decided to do my project report on this company. The Adidas mission has changed little since founder Adi Dassler began making sports shoes in the 1920s: to be the best sports brand in the world. The history of Adidas is one of consistently meeting the evolving needs of the athlete. Focusing more on function and less on fashion, Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. Meeting athlete needs is what makes Adidas the best. Adidas America has continued to build on this history. In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing company founded by former Nike executives Rob Strasser and Peter Moore. Sports Inc. had been working in conjunction with Adidas USA on the design, development, and marketing of the Adidas Equipment line. This line helped rejuvenate and reposition the Adidas brand in the United States by creating an exclusive line focused on fulfilling the functional needs of the athlete and by utilizing the best materials and athlete input in the tradition of Adi Dassler. It offered moisture management, thermal insulation, weather protection, ease of

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movement, and safety, helping the athlete to perform more efficiently. After the successful creation and launch of Adidas America I have made a research on marketing of Adidas by questionnaire method. The main aim of my research is to find out that how Adidas hold to the market and what are the areas in which Adidas can improve upon, in the questioner itself I have emphasis on the marketing of Adidas and also about the current position of Adidas in market. According to the response of my questionnaire, I have found that Adidas and Nike are main competitors but Nike is more preferred brand then Adidas. This is mainly for two reasons first Nike has more variety and good looks then Adidas and second there outlets are more then Adidas so the company must work upon these two thing to be the world number one.

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OBJECTIVES OF THE STUDY

To study the marketing of Adidas and also about the current position of Adidas in market

To find out Adidas and Nike are main competitors but Nike is more preferred brand then others.

To find out that how Adidas hold to the market and what are the area seen which adidas can improve.

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With his brother. and marketing of the Adidas Equipment line. Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. Dassler formed Adidas and his brother formed Puma. the Dassler brothers separated to form their own two separate companies. Adidas acquired Sports Inc. 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. Focusing more on function and less on fashion. Meeting athlete needs is what makes Adidas the best.COMPANY PROFILE In the small German village of Herzogenaurach the world began its love affair with Adidas (Ryno’s Company History). a US-based sports marketing company founded by former Nike executives Rob Strasser and Peter Moore. after realizing the need for performance athletic shoes. This line helped rejuvenate and reposition the Adidas brand in the United States by creating an exclusive line focused on 4 . The history of Adidas is one of consistently meeting the evolving needs of the athlete. In1948. Adidas America has continued to build on this history. In February of 1993. made for training. had been working in conjunction with Adidas USA on the design. both headquarters in Herzogenaurach. Sports Inc. Rudolph. In 1920. Adolf “Adi” Dassler brought to life those three little stripes. development.. Dassler manufactured his first sports shoe.

Salomon is a global leader in the sporting goods industry and offers the broadest portfolio of products.1 billion and net income of 208 million. the domicile of Adidas America Inc. and home to the strategic business units Basketball. It offered moisture management. weather protection. The company's share of the world market for sporting goods is estimated at around 15 percent. Adventure and Alternative Sports. helping the athlete to perform more efficiently. Additional key corporate units are based in Portland. Today.fulfilling the functional needs of the athlete and by utilizing the best materials and athlete input in the tradition of Adi Dassler. and safety. Also located in Herzogenaurach are the strategic business units for Running. Soccer and Tennis as well as the Research and Development Center. Activities of the company and its approximately 100 subsidiaries are directed from Adidas-Salomon AG's headquarters in Herzogenaurach. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance. Adidas . Adidas-Salomon products are available in virtually every country of the world. Germany. The strategic business unit Golf is based in 5 . with total net sales of 6. Oregon in the USA. delivering state-of-the-art sports footwear. After the successful creation and launch of Adidas America General Information For over 83 years Adidas has been part of the world of sports on every level. thermal insulation. ease of movement. apparel and accessories.

Almost 53% of the turnover is from sale of apparel and accessories with the rest from footwear.400 employees worldwide. The company also operates design studios and development departments at other locations around the world. 6 . corresponding to the related business activity.California. Adidas-Salomon AG has approximately 13. The other Adidas – owned brands. salomon & taylor made are expected to hit Indian Adidas stores during 2005 and 2006. The Adidas brand is one of the most popular brands as determined by a within brand survey of sportswear brands in the year 2007. Turnover and Brand Image The turnover of Adidas company has grown to 20Million US dollar in year 2005-06. The business unit Winter Sports is in Annecy. France. Future Plans Turnover is expected to rise to 22 Million US dollar for Adidas India in 2006-07 cash break even is fore cast during calendar year 2005 and an operating break even during 2006.

you hope to sell to. are the people I want to sell to. Market research will answer questions like: • • • Whether your products or services are needed Who might want to buy your products What age. • If there are changes taking place and how this might affect what you sell • • • How well your products or services might sell How much demand there is for what you hope to sell What price would people be prepared to pay 7 . income occupation etc. Market research is a method of collecting data which will make you (as a business) more aware of how the people. will react to your products or services.MARKETING STRATEGIES: AN OVERVIEW OF ADIDAS Some of the theory I have used in my project are as follows Theory: what is market research and why it is important. sex.

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. questionnaire and mail survey. I have made use of two type of survey methods. Depending on the type of data you hope to collect will have a impact on what you choose to use. Questionnaires and personal interviews are one of the most common ways in which you can conduct market research. The Question I have asked are given in “questionnaire part” below. I have asked some question about the company my mail and also by direct contacts. Theory: marketing mix The Marketing Mix (The 4 P's of Marketing) Marketing decisions generally fall into the following four controllable categories: • • • • Product Price Place (distribution) Promotion 8 . Mail Survey and Telephone interview. and there are many methods of gathering data this way: Direct Interview.

advertising. display. branding. and fact finding and analysis. Borden published his 1964 article. physical handling. 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. servicing. The ingredients in Borden's marketing mix included product planning. 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". depicted below: The Marketing Mix These four P's are the parameters that the marketing manager can control. 9 .The term "marketing mix" became popularized after Neil H. subject to the internal and external constraints of the marketing environment. packaging. personal selling. promotions. distribution channels. E. The Concept of the Marketing Mix. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing. pricing.

or exclusive distribution) Warehousing 10 . penetration.Product Decisions The term "product" refers to tangible. 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. physical products as well as services. selective.) Cash and early payment discounts Price flexibility Price discrimination Distribution (Place) Decisions Distribution is about getting the products to the customer. Some examples of distribution decisions include: • • • Distribution channels Market coverage (inclusive. etc.

) Advertising Personal selling & sales force Sales promotions Theory: SWOT analysis This theory tells about the company strength. opportunity and Threats. Marketing communication decisions include: • • • • Promotional strategy (push.• • Distribution centers Transportation Promotion Decisions In the context of the marketing mix. that is. the communication of information about the product with the goal of generating a positive customer response. weakness. pull. promotion represents the various aspects of marketing communication. etc. 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 11 .

Hyderabad and Calcutta. Adidas has introduced in India.4 Million with the equity structure changing to 91. launched its range of sports footwear.6% by magnum. Adidas India Ltd. This investment was raised to US $ 6. 12 . 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. – was incorporated with an initial investment of US $ 205 million with Adidas India Ltd. the total investment stands at US $ 11. The sports footwear available in India includes a wide range of core categories such as adventure. Adidas products were also launched in Mumbai.4 million with the equity structure remaining the same. These include apparel for athletics. apparel and accessories in New Delhi on November 1. 1996.Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called Adidas India Ltd.4% by Adidas and 8. tennis. Bangalore. Chennai. running. training. Adidas products are available in 30 cities in India. on October 1. indoor. Currently. a wide range of sports wear for both men and women. Torsion system and adi wear. basketball cricket. The new joint venture – Adidas India Ltd. and announced its joint venture with Magnum International Trading Company Ltd. golf. basketball. 1996. Adidas’ Range of Products in India A month after announcing the joint venture. Currently. holding 80% of the equity and Magnum holding the balance 20%. Subsequently. soccer and workout.

running. tennis. socks. running. 13 . wrist and headbands. soccer.cricket. campus bags. At present. multi-brand stores and distributors. training and workout. exclusive stores. caps. swimming. golf. Adidas Markets its products in India through a combination of mega exclusive stores (area of 1000 sq. feet and above). tennis and training for Men. medium and large kit bags. golf. Accessories include bag packs. Adidas is available in 80 exclusive outlets out of which 34 are company – owned with 8 new Company – owned stores planned for 2005 and in 500 multi-brand outlets in India. swimming. The women’s range includes apparel for athletics.

The rule is simple: form follows function. you can now purchase an extensive range of Adidas footwear and apparel online. The following is a general outline of how we create our performance-based products. An Adidas product is the result of the intense thought and creative energy of many different people. The marketing department evaluates athletes’ needs and develops a basic concept of how those needs should be 14 . From running shoes to baseball cleats. A development team makes the actual prototypes. all things sport are available at the Adidas store. collegiate licensed jackets to good old fashioned cotton T-shirts. How do adidas create its Products Adidas goal is to create a product that is honest – it must perform. These prototypes are then presented to the retail market by the marketing department. 1. Technology and functional design.MARKETING-MIX (FOUR P’S): ADIDAS The Product Whatever your athletic preference. eye wear to lanyards.

The development department then works with the design department to create an actual prototype from the selected sketches. The people from design and marketing consider the prototype sketches together. 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. narrowing the selection to those they anticipate will most successfully meet athletes’ needs. This concept is then presented to the design department. 5.met. 2. Based upon this concept from the marketing department. 3. 6. 15 . the design teams sketch possible prototypes. 4. Three separate groups – marketing. design and development – meet and discuss how to improve the prototype.

Preview samples are presented to key accounts and consumer focus groups for feedback. That’s the Adidas way of doing it – image is a critical part of branding strategy the world over. The finished product is delivered to retailers. Based upon this information. 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. At Adidas the brand awarding is been taken rather seriously at its headquarters. Adidas wants to bring inline skates into India. 16 . but it will contribute a lot to Adidas brand image.7. final changes are made. As A BRAND At Adidas –you have got to be sporty. Samples are distributed to Adidas sales representatives for presentation to retailers. I. What that kind of stuff got to do with Indian market? Yes. 8. it won’t really be a hot seller. 9.

Its working with promising athletes to give them a taste of its products. II. This is reflected in the clothes that people wear today. Adidas in fact did go through a limited fashion phase. Adidas will take on arch Nike with almost the same positioning. strengthening & toning. Adidas nowadays is capturing an attitude that is sports related. the trend is towards being sporty. They had the image. We develop shoes that take into account the needs of a particular sports & the role of this brand is driven by this factor”. Words of G. apart from endorsing the performance element in the brand. Leander Paes & Mahesh Bhupathi endorsing the brand in India. 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. 17 . Adidas steps out of crease with a clear sports positioning. Going to Gym is fast graduating from a mere fad to serious body building. Kannan (Director – Marketing) “Our Secret is our commitment to the sports process.Adidas already has heavy weight sportsmen such as Sachin Tendulkar. Good news for Adidas is that even in the casual market.

an engine and four wheels? If a company sell a delivery service. For Adidas the product plays an eminent role in the enhancement of their corporate as well as sports image: ADIDAS SAYS – “Nothing compromised. product is not just a assortment of few items. The most innovative Adidas products created specifically to help make you a better athlete. For Adidas. If a company sell an automobile. The rule is simple: form follows function. VALUE OF IT’S PRODUCTS FOR ADIDAS Our goal is to create a product that is honest – it must perform. But it involves—developing of the right product – which can then be put to right place & sold with the right promotion & price. for instance is unique property which can be reinvented in various forms as trends changes. is it selling so much wear and tear on a delivery truck and so much operator fatigue? As 18 . of nuts and bolts. is it selling a certain no. some metal sheet. C. As studied earlier an Adidas product is the result of the intense thought and creative energy of many different people.The three stripes.

but it includes accessories. installation. They don’t care how they were made. use or profit the customer wants. the don’t really care how much out of the way the driver had to go or where he/she has been. that whatever product they purchase should fulfill all their needs and preferences. the package. instruction on use. as per Adidas place and physical distribution of the product is something on which almost every company spends a handsome amount of money. perhaps the brand name which fulfills some psychological needs a warranty and confidence that service will be available after the purchase. Further they want that when they order something. Adidas says that all the customer wants is. Adidas says that the total product is not just a physical product with its related features. 19 . They just want their package. That means for them only the final service matters.PLACE AND PHYSICAL DISTRIBUTION: A: Place Adidas is very much concerned about its second “p”. As per Adidas the idea of product potential customer’s satisfactions or benefits is very important.per Adidas the answer to these question is instead what we are really selling is the satisfaction.

TRUCKS In Adidas. Note: Physical distribution can be varied endlessly in a marketing mix and in a channel system. except the export products. which is available is put together to give a target market what it wants. His is usually done by those who are close to the retailers only. Marketing specialists put together an assortment to satisfy some target market. Adidas has appointed marketing specialists who are taking care of the supply of the product and their distribution channels and process. 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. Process used – assorting progress Entire range. The flexibility of trucks makes them really 20 . B: Physical distribution As per Adidas nearly half of the costs of marketing is spend upon the physical distribution. trucks are considered to be the best medium for transport.Hence Adidas takes a good care of its place and physical distribution process.

Adidas thinks that promotion is communicating information about the product between the seller and the buyer to change attitudes and behavior.good for moving small loads for short distances. These marketing managers look after process of the promotion of the products of their company. According to Adidas they can give extremely fast service. 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. PROMOTION: Adidas is one of the India’s biggest company of sports that spends nearly $10 million on its sales promotion and advertising in Indian Market. They can travel on almost any road. Adidas believe that it just cannot be taken lightly. Also trucks causes less breakage in handling. It is the process which is responsible for the growth or decline in the sale of the product. wherever the Adidas is located. To handle the company’s promotional activities Adidas has employed marketing managers. 21 . It is a very important aspect of products life cycle.

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 company’s selling efforts. But company takes a very important look about how the product works and this message is communicated to their consumers.Adidas thinks that only taking the product to the customers is not a task of the company. Because a wrong message can lead to the end of their products life. 22 . Sales Promotion Adidas is the most popular amongst its rival for its excellent sales promotional activities.

As per Adidas. They may interpret the same words differently. Continuously. So Adidas always tries to deliver the message which everyone can easily understand. 23 . They arrange contest. from World War II to 1980 it went from $1 billion to $50 billion. ADVERTISING As per Adidas advertising can get results in a promotion blend. almost twice in a year Adidas goes for discount on sales. people see same message in different ways. The amount spent in the Unites States for advertising is growing. In order to motivate the employees of the company Adidas also prepares training material for the company’s own sales force.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. They even design the sales materials for the company’s own sales force to use during the sales calls. Good results are obtained at a cost of course.e.

Adidas however feels that its just the matter of time 24 . It’s a tough job – to maintain the integrity of the performance and still come out with a product a right price point. Leander Paes and Mahesh Bhupathi are already attached with their ad-campaigns. To tackle this. Adidas came out with speed 2000. you have to make the product more affordable.Adidas also spends nearly $2. a product priced at Rs. Adidas believes it has to deliver a functional at an affordable price. So far so good. it wants to become the no.995 with the help of local and Hong Kong source people. PRICING: Adidas is clear. 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. one sports brand in India.The heavy weight players like Sachin Tendulkar. that’s the most critical factor in the Indian context. Globally shoes start at $50. Adidas in India is spending almost $17 million on advertising. But in India as the perceived need is lower. a choice brand for all brands. Price.9 million on its advertising throughout the world.

It is very difficult to operate on a lower price point and maintain integrity of product. Growth has been phenomenal for Adidas even given the base is small. So company took the next best step when the licensing agreement ended to take a bigger share in business. Adidas feels that as the volume go up. Adidas started at the time when India had no strength out in the sports products market in 1989 – 90. which are easy to afford and still maintain the integrity of their performance. The original sector is just 20% of the total market and 80% of the volumes comes from sporty shoes. but its been barely 3 years since the sports market has taken off. In 2002 Adidas grew by 25%. Company is trying to make products.before India coverage’s the world on this front. To conclude we can say that Adidas is putting all efforts to bring down the price consciousness in the Indian market. and it had limitations of what it could have put behind the brand. 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. Its then licensing partner Bata. 2003 by over 50% and 25 . But our market is producing products at a price that is relevant to the consumers.

this year Adidas is expecting more than 50% in terms of value in both shoes and apparel. 26 . while the industry growth as a best case estimate has been 20-25%.

a better human being. Adidas becomes a part of life. Release of tension. Remember the Sachin Tendulkar commercial? How everything is near-frozen. You don’t have to be the highvoltage performer to be a part of the Adidas family. And it goes beyond that – Adidas becomes something that makes you better. and the shattering glass signifies release. Anyone’s life. One of the advertisements : The spot featuring Boldon. to do what he has to do and what he needs to do. crowded streets and so forth. in a towel) in distress. it is the urban landscape – with its omnipresent traffic jams. Adidas gives you a chance to but the boundaries – in every sphere. the setting is not the playground or the track or the court. To help a man (the owner. the brand with three stripes. seems to use the elements of high-tension in its ads. Only now. Not just as an athlete.MARKETING STRATEGY – ADIDAS OTHER STRATEGY Adidas. 27 . shows him chasing a thief (who’d stolen a TV set when its owner was in the bath) through the dark streets. but as a sports person. And he uses all the power that he can. This way.

the other man could have done as well as Boldon. One is wearing a pair of Adidas shoes while the other is barefoot. This is perhaps shown in an oblique way when the spot ends at the feet of Boldon and the bather. Adidas became Adidas-Salomon with its US $1. aside from its winter sport equipment. a French manufacturer of skis and other sporting goods. In stark reality. 28 . The merger makes Adidas/Salomon the second largest sport marketer in the world. and number one in Europe. than he would otherwise have been able to. And Adidas goes beyond athletic performance – it becomes everyday life. The bather reads any man. and Adidas has the largest market share in Europe. MARKETING: ADIDAS In 1997. Though humorously and light. Salomon. it has a deep meaning. The deal put Adidas one step closer to competitor and world market leader Nike. Any man who wears Adidas. Salomon is currently very strong in North America and Japan.4 billion purchase of Salomon. goes the base.And Adidas helps him perform better. Adidas makes you better. and one step ahead of Reebok. In short. also owns golf club brand Taylor Made and cycle brand Mavic.

Says the headline: ‘Sachin likes his bat heavy. Some of the most famous are Martina Hingis (tennis). Finally.’ The second new shoe range to be introduced for the first time in India.299. LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING STRATEGY IN INDIA Continuing its association with trump card Sachin. very active insuring sponsorships advertising deals with celebrities. Patrick Kluivert and Zidane all wear Adidas boots. Paul Palmer (swimmer). not his shoe. Kobe Bryant (basketball). like Nike. these are athletic sandals primarily meant for water-based adventure sports. David Beckham.Adidas is. “Instead of presenting just one dimensions : The first ad connects Sachin’s choice of a heavy bat with Adidas’ Falcon Dorf light weight shoes. The next ad will convey that Adidas covers various price points by promoting its 29 . the local four-ad print campaign tries to connect Adidas’ product attributes with Sachin’s magic. the Predator Accelerator. Peyton Manning. jan Ullrich (racing cyclist) and the New York yankees. Sub-branded ‘Aksu’ and priced at Rs 2.

marketing. the Soccer World Cup in France attracted more spectators than any single sports event before. we could not have wished for more. These were great times for our brand. The importance of celebrity sponsorship and events to Adidas is illustrated by Robert Louis-Dreyfus’ letter in the company’s 1998 annual report : “When it comes to showcasing our brands. the Winter Olympics focused the attention of sports enthusiasts on Nagano.499 and 1.existing Portland range priced at Rs 1. won the World Cup. Adidas: 30 . Says G Kanan. the overall Adidas budget for promotion and sponsoring accounted for nearly 15% of turnover. promoting the three stripes. Early in the year. general manager.. In 1998. only in May-as well as through a four-ad print campaign developed locally by RK Swamy/BBDO.799 (the leather version). In summer. mascot and trophy for the design of its own products. 1998 was truly exceptional. Adidas will have access to the official emblems. The positioning is being communicated through its global campaignreleased worldwide in February 1999 but in India.’ Adidas has reached an agreement with ISL Marketing G of Switzerland to become an official sponsor of the 2000 UEFA European Championships. When the French team.

The campaign also introduces a new brand line for Adidas: ‘Forever Sport’. But after a certain duration. We’re an attitude that is relevant all the time. as there are certain values a consumer needs to know about Adidas. He is important. 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.“We are the only brand with heritage in sports. Says Kanan: “Sachin has and will play a major role in pushing the brand. 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. the new brand line has been introduced almost after a decade. Interestingly. when it was using ‘Earn your stripes’ as its tag-line. we’re not an attitude that’s fashionable.” 31 . The company dropped it during the late 80s after it found that it wasn’t connecting too well with its consumers. we have to present a global perspective too and hence the Forever Sport campaign. As a brand.

Leander and Bhupathi. the company is maintain a steady and dominant presence in the media during the Cup: strewn over select channels like Star. Adidas does not intend to bring down the prices of its products. and ESPN are the Sachin ads promoting Adidas. "“e 32 . says Kanan. has come through a combination of strategies: signing on Sachin. we can catch the elite customer”.Interestingly. Kanan says. 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. and support to the brand. We are willing to wait for the market to evolve. It’s too large an event to make significance for us”. says Kanan. Says Kanan.” For Adidas. he claims that Adidas has grown by over 250 per cent from last year. Discovery. Although Kanan admits that the sports shoe and apparel market is at a nascent stage. the real breakthrough. a revamped range which covers a band of price points. As a company that takes pride in not joining the price brawl. Instead. expanding its reach (it opened 45 stores last year). “We don’t look at driving down the market by lowering the price. according to Kanan. However. the campaign has been broken now to coincide with the peak season (April-June). “Star News is delivering good value while through Discovery. “The World Cup is incidental.

for women. We have realized that to have just one good guy endorsing your brand is more important than having several unknown faces”. The logic is clear: use Forever Sport to ensure sales forever. admits Kanan. “We’re looking at driving the market through exclusive stores”. and supported them through sports icons who are looked up to. Most consumers start experimenting with the brand through apparel”. 33 . Adidas is planning to add 30 new stores this year. says Kanan The company is enlarging the scope of its business by concentrating on apparel. particularly those endorsed by star athletes. Never achieved profitability and collapsed under the weight of its own unrealized ambitions. Says Kanan. Adidas however defends its range by pointing out that currently it has 50 items out of a total of 250. and it’s these stories that sell the shoes to buyers. Villota says that every style of footwear has a story.built-in value pricing in our products. Adidas’s objective with the new line of footwear is to generate sales leads through its Web site. Further. “Apparel is driving the business. Essentially perceived as a male brand. either through direct purchase or a retailer finder.

underlines Management’s confidence in its ability to achieve its 2005 targets. citing competitive pressure. Management views 2004 as a year of consolidation and restructuring and has increased the pay out percentage to reward longterm shareholders. The newest version of Bryant’s footwear hits the street Nov. The Adidas . 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. 34 .92 per share to the Annual General Meeting of Shareholders on May 10. coinciding with the start of the 2003-2004 NBA season.Salomon Executive Board will propose paying a dividend of CC 0. 1. This decision to maintain a stable dividend level. despite the EPS decline in 2004.While Villota wouldn’t disclose how much of Bryant’s Adidas footwear is sold online. the same amount as in the previous year. Villota says it is Adidas America’s most ambitious integration of Web content and electronic marketing. While Adidas won’t comment on the new site’s features.

Examples of product featuring the Trefoil logo include the Stan Smith.THE ADIDAS LOGO The “Trefoil” was adopted as the corporate logo in 1972. and Classic T-shirt. Road Laver. it was decided that the Trefoil would only be used on heritage products. Equipment is the ultimate expression of what is uniquely possible by design when form follows function. It represents the heritage and history of the brand. This line of footwear and apparel represents the most unique and functional of Adidas products. 35 . In 1996. Equipment The Adidas Equipment line was launched in 1991. A-15 warm-up.

Since 1949. This logo is used in all advertising. the Three-Stripes brand mark became the worldwide Adidas corporate logo. 36 . the Three-Stripes have been an integral part of our brand and product designs. printed collateral and corporate signage.In January 1996. This trademark has become synonymous with Adidas and its dedication to producing high-quality athletic products to help athletes perform better. This logo represents performance and the future of the Adidas brand.

Adidas-Salomon products are available in virtually ever country of the world. apparel and accessories. delivering state-of-the-art sports footwear. 37 .ADIDAS: COMPANY’S FINANCIAL FACTS For over 83 years Adidas has been part of the world of sports on every level. Today. The company’s share of the world market for sporting goods is estimated at around 19 percent. with total net sales of £182 million. AdidasSalomon is a global leader in the sporting goods industry and offers the broadest portfolio of products. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance.

The quality and the material uses in Adidas is very good. the publicity and the advertisement is also very good and lastly company hold a healthy 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 that’s why company must give a deep thought on manufacturing their products in India.SWOT ANAYSIS Strengths: • The main strength of Adidas is his Product Quality. • The company has a good brand image in the market. • Another strength of the company is its well efficient and effective management. • Another major weakness in the company is that it is not catering to all the segments which I have already discuss above. which works as a team. 38 .

If these two weakness in the company can be eradicated then the company may earn high profit and better market status.

Opportunities:
• Adidas does have many products for the urban segment or poor people, but there is 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. • 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 range and the variety of the 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 uses 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 an extra advantage over Adidas. • Adidas do not have any competitive advantage as compared to Nike and Reebok.

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RESEARCH 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 I visited the Adidas India Ltd., which is located In Mehrauli (new Delhi). I Also Met Some Of The Marketing Executives Who Helped Me Getting The Required Information. I Also Got Some Of The Information From The Other Resources Of The Corporate Office Like :  Company Journals  Company Catalogs  Questionnaire (Structured & Non Disguised)

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 And Other Related Sources. 42 . Primary data: I have prepared a questionnaire for the general public asking about the marketing strategy of Adidas. in that particular questionnaire I have asked some question give in finding and analysis section: (the questioner is filled by 80 people).

(C) Sales Analysis During the first quarter of 2004. Note: not all of these companies have the same fiscal year: the most recent data for each company are being used. 20%. Production and marketing of sports equipment. (B) Competitor Analysis Adidas-Salomon AG operates in the Men’s & boys’ clothing sector. Sales of Footwear accounted for 45% of 2004 revenues. sales at Adidas totalled 1. footwear and apparel under the brand names of Adidas.52 billion Euro in sales at 43 .56 billion euro.87 billion of which 73% was Footwear).46 billion Finnish Markka [US$996.7% from the 1. and Amer Group PLC which is based in Finland (2003 sales of 6. Salomon. Taylor Made and Mavic.FINDINGS Company research report (A) Company Description Adidas-Salomon AG(ADIDAS). Sales of Apparel.88 million] of which 24% was Racquet Sports). This is an increase of 2. of the United States (2003 sales: $2. This analysis compares Adidas with three other sport shoe and apparel manufacturers: Nike Inc. Reebok International Ltd. of the United States (2004 sales of $9 billion of which 59% was Footwear). 35% and Sales of Hardware.

0% versus 2000.79 2. sales have been highest during the third quarter.35 billion) for the year ending December of 2004.38 billion Euro (US$5. sales have increased a total of 226%).35 billion Euro. D. Adidas reported sales of 5. Adidas also experienced significant increases in sales in Asia-Pacific (up 3.the company during the first quarter of 2003.9% to 875. Sales at Adidas appear to have some seasonally: during each of the previous 5 years.61 3.00 million Euro).53 8 6 4 2 0 1999 2000 2001 1. which has accounted for between 28. Recent Sales at Adidas (Figures in Billions of Euro) 6.00 million euro. sales increased 36.0% and 32. Sales at Adidas have increased during each of the previous five years (and since 1999. This represents an increase of 9. During the previous 17 quarters.0% to 171.06 6.62 5.0% of the annual sales. when the company’s sales were 5. sales at Adidas have increased compared with the same quarter in the previous year. 44 . sales in Latin America were up at a rate that was much higher than the company as a whole: in this region.47 2002 2003 2004 In 2002.

and its ticker symbol is ADDDY. Adidas is the leading producer of sporting goods in Europe and it is second in the overall world market. Adidas has stock traded on exchanges in Frankfurt and Pairs.GROWTH Adidas is a constantly growing company. 45 . For anyone not familiar with the structure of this company (since it is not based out of the USA). just behind Nike. Adidas sales have grown significantly each year from 1994 to the present. while 37% come from the Americas. The pie chart below shows exactly how the ownership of the company is spread out across the world. while a substantial 30% comes from the United States. Most of the ownership comes from Europe. with the smallest percent of Adidas’ sales coming from Asia. and only 9% of revenues come from a growing Asian market. followed by the United states. and the rest from Asia. it is much like US based competitor Nike. It is global in scope with the majority of its sales coming from Europe. Nearly 55% of Adidas revenues come from Europe.

This growth in sales comes from not only an improving world economy. sales have grown rather exponentially. 46 . The company has to become innovator not follower they must do something differently to come with the flying colors.Asia 5% Europe 40% US 30% UK 25% Adidas is a growing company as stated above. but from Adidas’ marketing efforts to make it one of the most popular sporting goods brands. This shows that Adidas does not have a large market share in Asia as compare us and Europe and my questionnaire (given below) also suggest that company can improve a lot the certain areas are marketing distribution and competing with the competitors. although growth slowed in 1999. but how much and how fast? As you can see from the graph of net sales over the past five years.

16 said Reebok is good and 4 said others. others 5% reebok 20% adidas 45% adidas nike reebok others nike 30% 47 . How does u rate the company marketing strategy as compare to the other competitors company like Nike.DATA ANALYSIS 1.? Out of 80 people 36 had said Adidas have a good marketing strategy and should continue like this only. Reebok etc. 24 had said Nike is more better then Adidas.

2. Do u 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% 48 .

3. 18% 0% happy not happy 82% 49 . Do u 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 don’t like them.

14% 0% quality other factor 86% 50 . 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. What things u keep in mind while purchasing shoes will it be quality. advertisement.4.

23 said Reebok and 15 others. 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. which shows that the main competitor of Adidas is Nike.5. 19% nike 52% 29% reebok others 51 . so different people have different opinion. If u have to purchase shoe except Adidas which shoe it will be and why? Out of 80 people 42 have said Nike.

What do u 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. 52 .6.

53 .  Also. enough justice could not be done to the project.LIMITATIONS  The research project has been completed with ease and comfortably. No particular limitation or shortcoming was realized during the analysis. due to time constraints.

it has had to deal with problems of heterogeneity vs. 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. in an increasingly heterogeneous and global world. In the case of Adidas.CONCLUSIONS ADIDAS in INDIA has always been driven by its Value-for-money strategy. Companies. many problems will arise that cannot be solved. As the world grows to become one. 54 . including Adidas are no longer homogenous in the sense that their companies have grown worldwide. And as a result. Having to spread its workforce. The company needs to identify critical success factory and work assiduously towards achieving it. One of the primary challenges associated with globalization is balancing conflicting and competing objectives. Adidas has had to make worldwide headquarters and produce information and products in several different languages. Despite what could be higher costs. diversity in the workplace has appeared to emerge as an issue. it has faced such problems already and how they have dealt with them is with flexibility and calmness. In other words. Adidas has come to depend on intangibles. homogeneity.

yet they too are facing new changes. knowledge is greatly valued. such as these. 55 . For some it is not common knowledge that Adidas is a German company. Adidas has created a product that is global and with that diversity and knowledge greatly affect the company. Adidas is greatly affected by these external influences since indeed it is a global company. how successful companies are in the global world is increasingly derived from intangibles. Who leads this knowledge and maintains diversity are the managers. This is a result of good global business. Because of this necessity. The long list of Adidas subsidiaries where it conducts business proves that Adidas is constantly adapting to cultural changes and must be extremely diverse. Adidas must be able to easily adapt to different cultures and must be culturally aware when conducting business. intuition and inspiration are an asset that is a necessity in this industry and to remain a global company. Recently.The knowledge. new ideas. that organizations cannot own. worldwide experience and diversity that an Adidas employee can bring to the table are valuable. Great changes occur in this industry and as a result.

with further synergies between the two brands. they rank second only to Nike in terms of sales. and solid growth in all the major golf markets is expected to continue. increased marketing and sales support will target ambitious golfers. At Taylor Made-Adidas Golf. The main competitors of Adidas include Nike and Reebok However. other smaller competitors 56 . and as a result net income is projected to increase by 15%. operating expenses will decline as a percentage of sales. Topline growth is expected in all other regions. Double-digit growth from Salomon is projected as a result of the continued innovative strength and the increasing profile of their products. However. the Adidas brand’s new divisional structure will be in place to start delivering positive results for the Group.  In addition to these positive top-line developments. which began in 2002. will continue in 2005. Adidas America will remain a challenge but nevertheless will deliver qualitative sales improvements in the second half of 2005. The integration of Mavic with Salomon. gross margins are expected to remain within a range of 41% to 43%.RECOMMENDATION  For 2004.  Adidas is currently ranked third in almost every category in the global athletic shoe industry.

has competed with a whole new strategy. setting up manufacturing facilities. Gear and Fila (Fortune. a wholly owned subsidiary. and the foreign sports companies are here for the long term. But the battle has only started. but the rejuvenated Adidas has climbed to within easy reach of Reebok. which has been struggling in the past couple of years. Adidas. They can sustain losses for years to come in order to gain market share. Adidas commands only 5% of the athletic shoe business in the U. Puma and Easy Spirit. compared with the 40% for the fearsome Nike. he also took a gamble on the side. Aside from cutting the whole line of German senior management. who failed to match competitors’ low costs in subcontracting shoemaking to local companies. Louis-Dreyfus. 57 . is building up distribution networks to cover every nook and corner of the country and. 2000)  Since acquiring their current president. Louis-Dreyfus also fired management in Asia.include Fila. While Louis-Dreyfus fought bring down costs. What they are doing at present.A. Adidas began to focus on global marketing. Adidas is also steadily regaining market share lost to other brands such as L.S..

58 . Small companies will be sidelined totally and will exit from the sports market altogether. although with a much smaller market share than they have at present. The company needs to identify critical success factory and work assiduously towards achieving it.Only those Indian manufactures which have a strong focus on manufacturing and technological upgradation will survive in the long run. ADIDAS in INDIA has always been driven by its Value – for-money strategy.

price or design?  Quality  Otaher factor 59 . Reebok etc. Do u think that the company Adidas is giving its customer what they want in terms of quality and prices or value for money?  Happy  Not Happy 3.?  Adidas  Reebok  Nike  Others 2. How do u rate the company marketing strategy as compare to the other competitors company like Nike. advertisement. Do u think that the advertisements and the brand ambassador of the company is good enough?  Happy  Not Happy 4. What things u keep in mind while purchasing shoes will it be quality.ANNEXURE QUESTIONNAIRE 1.

What do u think that the company Adidas must do to improve its marketing strategy? ______________________________________________________ ____________________________________________________ 60 .5. If u have to purchase shoe except Adidas which shoe it will be and why?  Nike  Others  Reebok 6.

ETJEC. V.BIBLIOGRAPHY Books: PHILIP KOTLER.webcrawler.adidas. SECOND EDITION. MICHALL J.indiainfoline. WILLIAM STANTON.J.WALKER FUNDAMENTAL OF MANAGEMENT. RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.com www.S RAMASWAMY AND S.com www. NAMAKUMARI MARKETING MANAGEMENT. Web Sites • • • www.com • Class Notes is referred Magazines • • • • A&M Business India India Today Business Today Newspapers • • • The Times of India The Hindustan Times The Economic Times 61 .com www. BRUCE J. EDITION 2005.indiatimes. MARKETING MANAGEMENT.

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