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A special thanks to Mr.Sanjeev chaturvedi for helping in making my project at Adidas a memorable learning experience. For his learned guidance, constant inspiration, keen interest and immense encouragement throughout the period of market research. His constant supports as well as the confidence, which he shown in me helped me, hide over the difficulties. No work is complete without credits being given to the person who helped in achieving the desired task.I feel privileged to thank my teacher Mr Sanjeev chaturvedi and all those who have directly or indirectly contributed to the completion of the project.
ARUSHI BANSAL SEC F A1802011187
This is to certify that I , Arushi bansal, pursuing MBA from Amity university ,Noida have prepared this project by myself with the help of various people.
Most importantly, I would like to thank my teacher guide MS. SARGAM MAKKAR. I am grateful to her for her help and guidance throughout.
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.
TABLE OF CONTENTS
1. INTRODUCTION 2. COMPANY PROFILE 3. SWOT ANAYSIS 4. OBJECTIVES 5. RESERCH METHODOLOGY
FINDINGS & ANALYSIS
7. LIMITATION 8. CONCLUSIONS 9. RECOMMENDATION 10.QUESTIONNAIRE 11.BIBLIOGRAPHY
After the successful creation and launch of Adidas America . The history of Adidas is one of consistently meeting the evolving needs of the athlete. and marketing of the Adidas Equipment line. Meeting athlete needs is what makes Adidas the best. Adidas America has continued to build on this history. a US-based sports marketing company founded by former Nike executives Rob Strasser and Peter Moore. 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. It offered moisture management. Focusing more on function and less on fashion. had been working in conjunction with Adidas USA on the design. development.. The Shoe Company that I most admire is Adidas. helping the athlete to perform more efficiently. Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. 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. Firstly. Adidas acquired Sports Inc. ease of movement. I have chosen this particular topic mainly for two reasons.INTRODUCTION My project topic is "Adidas" which is a shoe company and I am analyzing its Marketing Strategy. Hence I have decided to do my project report on this company. weather protection. and safety. Secondly adidas grows as one of the best leading brand in the shoes and other accessories which is admired by all types of generation. 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. thermal insulation. Sports Inc. In February of 1993.
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. 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. I have found that Adidas and Nike are main competitors but Nike is more preferred brand then Adidas. . According to the response of my questionnaire. in the questioner itself I have emphasis on the marketing of Adidas and also about the current position of Adidas in market.I have made a research on marketing of Adidas by questionnaire method.
Adidas America has continued to build on this history. Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. and marketing of the Adidas Equipment line. Dassler formed Adidas and his brother formed Puma. Rudolph. In February of 1993. In1948. It . the Dassler brothers separated to form their own two separate companies. Dassler manufactured his first sports shoe. made for training. Adidas acquired Sports Inc. a US-based sports marketing company founded by former Nike executives Rob Strasser and Peter Moore. Adolf “Adi” Dassler brought to life those three little stripes. 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.. had been working in conjunction with Adidas USA on the design. 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 fulfilling the functional needs of the athlete and by utilizing the best materials and athlete input in the tradition of Adi Dassler.COMPANY PROFILE In the small German village of Herzogenaurach the world began its love affair with Adidas. With his brother. Sports Inc. In 1920. development. The history of Adidas is one of consistently meeting the evolving needs of the athlete. Focusing more on function and less on fashion. both headquarters in Herzogenaurach. Meeting athlete needs is what makes Adidas the best.
. The company also operates design studios and development departments at other locations around the world. ease of movement. Activities of the company and its approximately 100 subsidiaries are directed from Adidas-Salomon AG's headquarters in Herzogenaurach. The business unit Winter Sports is in Annecy. thermal insulation. corresponding to the related business activity. delivering state-of-the-art sports footwear. helping the athlete to perform more efficiently. Today. weather protection. 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. Adidas-Salomon products are available in virtually every country of the world. France. Turnover and Brand Image The turnover of Adidas company has grown to 16 Million US dollar in 200405.offered moisture management. and safety. Germany. Adidas . Almost 53% of the turnover is from sale of apparel and accessories with the rest from footwear.Salomon is a global leader in the sporting goods industry and offers the broadest portfolio of products. The company's share of the world market for sporting goods is estimated at around 15%.400 employees worldwide.1 billion and net income of 208 million. apparel and accessories. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance. AdidasSalomon AG has approximately 13. with total net sales of 6.
'We strengthened our brand portfolio .The Adidas brand is one of the most popular brands as determined by a within brand survey of sportswear brands in the year 2004. Future Plans Football's World Cup and the takeover of US rival Reebok contributed to a surge in profits and turnover for adidas in 2006.08 billion euros. adidas faced a slowdown in growth because of an absence of major sporting events. Operating profit rose 26 per cent to 483 million euros while group revenues climbed 52 per cent to 10. the German based company said. Europe's biggest sporting goods manufacturer said Wednesday. Adidas AG chairman and chief executive office Herbert Hainer called 2007 'a truly exciting year' for the adidas Group. IN 2008.
following a 4 million euros loss for the same period of 2007. Turnover for the quarter rose 2. . Adidas reported a final quarter surplus of 13 million euros. Hainer said adidas' performance at the 2006 World Cup held on home soil 'was a stand-out in leveraging our brand strength.25 billion euros from 1.by acquiring Reebok and exceeded the 10 billion euro sales mark for the first time in the group's history.' The brand with the three stripes said it also profited from a strong performance by the TaylorMade-adidas Golf segment.52 billion in 2007.' he said.
are the people I want to sell to. • If there are changes taking place and how this might affect what you sell • How well your products or services might sell • How much demand there is for what you hope to sell • What price would people be prepared to pay Conducting market research .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. income occupation etc. Market research will answer questions like: • Whether your products or services are needed • Who might want to buy your products • What age. will react to your products or services. you hope to sell to. Market research is a method of collecting data which will make you (as a business) more aware of how the people.
questionnaire and mail survey. and there are many methods of gathering data this way: Direct Interview. The Question I have asked are given in “questionnaire part” below. Questionnaires and personal interviews are one of the most common ways in which you can conduct 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. I have asked some question about the company my mail and also by direct contacts. I have made use of two type of survey methods. Borden began using the . Depending on the type of data you hope to collect will have a impact on what you choose to use. Mail Survey and Telephone interview. 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 The term "marketing mix" became popularized after Neil H. The Concept of the Marketing Mix. Borden published his 1964 article.
promotions. depicted below: The Marketing Mix These four P's are the parameters that the marketing manager can control. display. packaging. branding. E. and fact finding and analysis. physical handling. distribution channels. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing.term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". servicing. The ingredients in Borden's marketing mix included product planning. pricing. advertising. The goal is to make decisions that center the four P's on the customers in the . subject to the internal and external constraints of the marketing environment. personal selling.
target market in order to create perceived value and generate a positive response. etc.) • 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 . 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. Product Decisions The term "product" refers to tangible. penetration. physical products as well as services.
) • Advertising • Personal selling & sales force • Sales promotions . or exclusive distribution) • Warehousing • Distribution centers • Transportation Promotion Decisions In the context of the marketing mix. etc.• Market coverage (inclusive. selective. Marketing communication decisions include: • Promotional strategy (push. that is. pull. promotion represents the various aspects of marketing communication. the communication of information about the product with the goal of generating a positive customer response.
Adidas products are available in 30 cities in India. Bangalore. apparel and accessories in New Delhi on November 1. The new joint venture – Adidas India Ltd. 1996. The Company Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called Adidas India Ltd. on October 1. holding 80% of the equity and Magnum holding the balance 20%. – was incorporated with an initial investment of US $ 205 million with Adidas India Ltd. 1996. Adidas India Ltd. Subsequently. Adidas’ Range of Products in India A month after announcing the joint venture. . Currently. Adidas products were also launched in Mumbai. 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. Chennai. Hyderabad and Calcutta.Theory: SWOT analysis This theory tells about the company strength. weakness. and announced its joint venture with Magnum International Trading Company Ltd. opportunity and Threats. launched its range of sports footwear.
tennis and training for Men.workout. golf. Adidas is available in 80 exclusive outlets out of which 34 are company – owned with 8 new Company – owned stores planned for 2011 and in 900 multi-brand outlets in India. indoor. basketball. tennis. tennis. running. cricket.Adidas Markets its products in India through a combination of mega exclusive stores. training and workout. The women’s range includes apparel for athletics. socks.The sports footwear available in India includes a wide range of core categories such as adventure. golf. These include apparel for athletics. swimming. a wide range of sports wear for both men and women. multi-brand stores and distributors. campus bags. swimming. medium and large kit bags. . running. wrist and headbands. exclusive stores.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. running. caps. At present. basketball cricket. Accessories include bag packs. soccer. golf. Adidas has introduced in India.
The following is a general outline of how we create our performance-based products. HOW DO ADIDAS CREATE ITS PRODUCTS Adidas goal is to create a product that is honest – it must perform. 1. Technology and functional design. A development team makes the actual prototypes. From running shoes to baseball cleats. . eye wear to lanyards. collegiate licensed jackets to good old fashioned cotton Tshirts. you can now purchase an extensive range of Adidas footwear and apparel online. An Adidas product is the result of the intense thought and creative energy of many different people. This concept is then presented to the design department. The rule is simple: form follows function. The marketing department evaluates athletes’ needs and develops a basic concept of how those needs should be met.MARKETING-MIX ( FOUR P’S): ADIDAS THE PRODUCT: Whatever your athletic preference. all things sport are available at the Adidas store.
the design teams sketch possible prototypes. Samples are distributed to Adidas sales representatives for presentation to retailers. stands up to the . 5. Based upon this information. 6. Three separate groups – marketing. The finished product is delivered to retailers. Samples are wear-tested to ensure the product meets Adidas standards for performance and durability and demands of the sport for which it was designed.2. 4. Based upon this concept from the marketing department. final changes are made. 8. design and development – meet and discuss how to improve the prototype. 3. The development department then works with the design department to create an actual prototype from the selected sketches. narrowing the selection to those they anticipate will most successfully meet athletes’ needs. 9. The people from design and marketing consider the prototype sketches together. 7. Preview samples are presented to key accounts and consumer focus groups for feedback.
At Adidas the brand awarding is been taken rather seriously at its headquarters. but it will contribute a lot to Adidas brand image. Adidas wants to bring inline skates into India. The idea of the company is to introduce performance specific sports shoes in the Indian market by building images around the world & at the same time create the need for these shoes at the ground level. Adidas will take on arch Nike with almost the same positioning. it won’t really be a hot seller. They had the image. That’s the Adidas way of doing it – image is a critical part of branding strategy the world over. apart from endorsing the performance element in the brand. . Adidas nowadays is capturing an attitude that is sports related. Adidas already has heavy weight sportsmen such as Sachin Tendulkar. Leander Paes & Mahesh Bhupathi endorsing the brand in India. As A BRAND At Adidas –you have got to be sporty. Its working with promising athletes to give them a taste of its products. Adidas steps out of crease with a clear sports positioning.A. What that kind of stuff got to do with Indian market? Yes.
We develop shoes that take into account the needs of a particular sports & the role of this brand is driven by this factor”. The three stripes. strengthening & toning. product is not just a assortment of few items. . 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.Adidas in fact did go through a limited fashion phase. For Adidas. C. This is reflected in the clothes that people wear today. Going to Gym is fast graduating from a mere fad to serious body building. B. Good news for Adidas is that even in the casual market. the trend is towards being sporty. Words of G. For Adidas the product plays an eminent role in the enhancement of their corporate as well as sports image: ADIDAS SAYS – “Nothing compromised. for instance is unique property which can be reinvented in various forms as trends changes. But it involves—developing of the right product – which can then be put to right place & sold with the right promotion & price. Kannan (Director – Marketing) “Our Secret is our commitment to the sports process. The most innovative Adidas products created specifically to help make you a better athlete.
of nuts and bolts. use or profit the customer wants. some metal sheet. The rule is simple: form follows function. but it includes accessories. is it selling a certain no. As per Adidas the idea of product potential customer’s satisfactions or benefits is very important. perhaps the brand name .VALUE OF IT’S PRODUCTS FOR ADIDAS Our goal is to create a product that is honest – it must perform. the package. installation. is it selling so much wear and tear on a delivery truck and so much operator fatigue? As per Adidas what we are really selling is the satisfaction. That means for them only the final service matters. Adidas says that the total product is not just a physical product with its related features.Adidas says that all the customer wants is. They don’t care how they were made. If a company sell an automobile. instruction on use. an engine and four wheels? If a company sells a delivery service. As studied earlier an Adidas product is the result of the intense thought and creative energy of many different people.they want that when they order something. They just want their package. that whatever product they purchase should fulfill all their needs and preferences.
which is available is put together to give a target market what it wants. Adidas has appointed marketing specialists who are taking care of the supply of the product and their distribution channels and process. Marketing specialists put together an assortment to satisfy some target market.which fulfills some psychological needs a warranty and confidence that service will be available after the purchase. . PLACE AND PHYSICAL DISTRIBUTION: A: Place Adidas is very much concerned about its second “p”. Process used – assorting progress Entire range. B: Physical distribution As per Adidas nearly half of the costs of marketing is spend upon the physical distribution. Hence Adidas takes a good care of its place and physical distribution process. His is usually done by those who are close to the retailers only. as per Adidas place and physical distribution of the product is something on which almost every company spends a handsome amount of money.
It is the process which is responsible for the growth or decline in the sale of the product. These marketing managers look after process of the promotion of the products of their company. To handle the company’s promotional activities Adidas has employed marketing managers. . TRUCKS In Adidas. Adidas believe that it just cannot be taken lightly. 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. except the export products.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. trucks are considered to be best medium for transport. It is a very important aspect of products life cycle. The flexibility of trucks makes them really good for moving small loads for short distances. Adidas thinks that promotion is communicating information about the product between the seller and the buyer to change attitudes and behavior.
Sales Promotion: Adidas is the most popular amongst its rival for its excellent sales promotional activities. Adidas thinks that only taking the product to the customers is not a task of the company. Adidas believes sales promotion tries to compliment the company’s selling efforts. In order to motivate the employees of the company Adidas also prepares training material for the company’s own sales force.e. As per Adidas they say that they themselves are responsible for the encouragement of the customer to by their products. But company takes a very important look about how the product works and this message is communicated to their consumers.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. almost twice in a year Adidas goes for discount on sales. They arrange contest. 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 .
PRICING: . The heavy weight players like Sachin Tendulkar. So Adidas always tries to deliver the message which everyone can easily understand. people see same message in different ways. They may interpret the same words differently. Continuously. As per Adidas. Leander Paes . Good results are obtained at a cost of course. ADVERTISING As per Adidas advertising can get results in a promotion blend.Sania Mirza and Mahesh Bhupathi are already attached with their adcampaigns. The amount spent in the Unites States for advertising is growing.the sales materials for the company’s own sales force to use during the sales calls. from World War II to 1980 it went from $1 billion to $50 billion.
. one sports brand in India. Adidas however feels that its just the matter of time before India coverage’s the world on this front.Adidas is clear. that’s the most critical factor in the Indian context. Adidas believes it has to deliver a functional at an affordable price. Adidas started at the time when India had no strength out in . Adidas came out with speed 2000. Globally shoes start at $50. a product priced at Rs. but its been barely 3 years since the sports market has taken off. you have to make the product more affordable. It is very difficult to operate on a lower price point and maintain integrity of product. Price. it wants to become the no. So far so good. It’s a tough job – to maintain the integrity of the performance and still come out with a product a right price point. To tackle this.995 with the help of local and Hong Kong source people. But in India as the perceived need is lower. Adidas will try and work out price points as people graduate with better understanding of quality and price perception. a choice brand for all brands. but how will it tackle a price conscious market like India? Adidas feels that being a high energy business Adidas introduces 600700 articles every six months – enables the brand to remain fresh and bring on an international and Indians the brand from the price stand point.
the sports products market in 1989. . Company is trying to make products. To conclude we can say that Adidas is putting all efforts to bring down the price consciousness in the Indian market. it took the next best step when the licensing agreement ended to take a bigger share in business. which are easy to afford and still maintain the integrity of their performance.
a better human being. shows him chasing a thief (who’d stolen a TV set when its owner was in the bath) through the dark streets. seems to use the elements of hightension in its ads. crowded streets and so forth. In short. Adidas makes you better. in a towel) in distress. it is the urban landscape – with its omnipresent traffic jams. the other man could . than he would otherwise have been able to. One of the advertisement: The spot featuring Boldon. but as a sports person. Only now. goes the base. Remember the SachinTendulkar commercial? How everything is near-frozen. And he uses all the power that he can. and the shattering glass signifies release. This is perhaps shown in an oblique way when the spot ends at the feet of Boldon and the bather. the brand with three stripes.MARKETING STRATEGY STRATEGY – ADIDAS OTHER Adidas. You don’t have to be the high-voltage performer to be a part of the Adidas family. To help a man (the owner. And Adidas helps him perform better. to do what he has to do and what he needs to do. Not just as an athlete. the setting is not the playground or the track or the court. And it goes beyond that – Adidas becomes something that makes you better. One is wearing a pair of Adidas shoes while the other is barefoot.
jan Ullrich (racing cyclist) and the New York yankees. aside from its winter sport equipment. Kobe Bryant (basketball). and Adidas has the largest market share in Europe. Peyton Manning. The merger makes Adidas/Salomon the second largest sport marketer in the world. Paul Palmer (swimmer). very active insuring sponsorships advertising deals with celebrities. MARKETING: ADIDAS In 1997.4 billion purchase of Salomon. Adidas is. Salomon. The bather reads any man.have done as well as Boldon. Some of the most famous are Martina Hingis (tennis). also owns golf club brand Taylor Made and cycle brand Mavic. Salomon is currently very strong in North America and Japan. Adidas became Adidas-Salomon with its US $1. a French manufacturer of skis and other sporting goods. the Predator Accelerator. Any man who wears Adidas. and one step ahead of Reebok. The deal put Adidas one step closer to competitor and world market leader Nike. like Nike. And Adidas goes beyond athletic performance – it becomes everyday life. David Beckham. and number one in Europe. Patrick Kluivert and Zidane all wear Adidas boots. .
only staged a comeback last year. production will be less than 10. I run a lot. rather than sell a lot of these shoes. 1. analysts say production is complicated and that the new sneakers will cost four or five times as much to make as a normal shoe. at $150 to $175 a pair. after two years of sinking sales. I bet the Adidas shoe works really well.for $100 I can get a very good running shoe. and I spend a lot of money on running shoes. LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING STRATEGY IN INDIA . Because of that.000 this year to drive exclusivity and hedge Stamminger's bet. My guess is.Adidas: Marketing a $250 Running Shoe No one knows if even serious runners are ready to pay $250 for a shoe — more than 50% above the next most expensive sneaker on the market. Is this computerized Adidas more than twice as good? I doubt it. But let me tell you . Nike Air Jordans. they hope to instill Adidas as the "king of running shoes" in the mind of the public and hope that the existence of the computerized shoe drives sales of other models.
not his shoe.Continuing its association with trump card Sachin. Says the headline: ‘Sachin likes his bat heavy. “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 local four-ad print campaign tries to connect Adidas’ product attributes with Sachin’s magic.
299. won the World Cup. Finally. as there are certain values a consumer needs to know about Adidas. The next ad will convey that Adidas covers various price points by promoting its existing Portland range priced at Rs 1. promoting the three stripes.499 and 1.The second new shoe range to be introduced for the first time in India. Says Kanan: “Sachin has and will play a major role in pushing the brand. 1998 was truly exceptional. the Soccer World Cup in France attracted more spectators than any single sports event before. These were great times for our brand.799 The importance of celebrity sponsorship and events to Adidas is illustrated by Robert Dreyfus’ letter in the company’s 1998 annual report: “When it comes to showcasing our brands.’ 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. Subbranded ‘Aksu’ and priced at Rs 2. these are athletic sandals primarily meant for water-based adventure sports. we could not have wished for more. He is important. In summer. Early in the year. When the French team. the Winter Olympics focused the attention of sports enthusiasts on Nagano. .
the company is maintain a steady and dominant presence in the media during the Cup: strewn over select channels like Star. and ESPN are the Sachin ads promoting Adidas. However. the campaign has been broken now to coincide with the peak season (April-June). Kanan says.So it promotes the brand image and make it popular. according to Kanan. Instead.Interestingly.Many limited edition merchandises were launched during the IPL season to promote the brand. 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. “Star News is delivering good value while through Discovery. . ADDIDAS IS ALSO SPONSERING THE INDIAN PREMIER LEAGUE.It was one of the major sponsers of IPL season 1 & 2. we can catch the elite customer”. Discovery.which draw thousands and millions of fans towards it. “The World Cup is incidental.
Adidas does not intend to bring down the prices of its productsFor Adidas. says Kanan . says Kanan.Although Kanan admits that the sports shoe and apparel market is at a nascent stage. expanding its reach (it opened 45 stores last year). admits Kanan. has come through a combination of strategies: signing on Sachin. The company is enlarging the scope of its business by concentrating on apparel. for women. As a company that takes pride in not joining the price brawl. . a revamped range which covers a band of price points. Most consumers start experimenting with the brand through apparel”. Further. Says Kanan. Leander and Bhupathi. “We’re looking at driving the market through exclusive stores”. the real breakthrough. "“e built-in value pricing in our products. “Apparel is driving the business. Adidas however defends its range by pointing out that currently it has 50 items out of a total of 250. We have realized that to have just one good guy endorsing your brand is more important than having several unknown faces”. Adidas is planning to add 30 new stores this year. and support to the brand. Essentially perceived as a male brand. he claims that Adidas has grown by over 250 per cent from last year. and supported them through sports icons who are looked up to. The logic is clear: use Forever Sport to ensure sales forever… Never achieved profitability and collapsed under the weight of its own unrealized ambitions.
Management views 2004 as a year of consolidation and restructuring and has increased the pay out percentage to reward long-term shareholders. either through direct purchase or a retailer finder. In 1996. underlines Management’s confidence in its ability to achieve its 2005 targets. The newest version of Bryant’s footwear hits the street Nov. the same amount as in the previous year.Salomon Executive Board will propose paying a dividend of CC 0. particularly those endorsed by star athletes. It represents the heritage and history of the brand. and it’s these stories that sell the shoes to buyers. Villota says that every style of footwear has a story. Villota says it is Adidas America’s most ambitious integration of Web content and electronic marketing. This decision to maintain a stable dividend level. THE ADIDAS LOGO The “Trefoil” was adopted as the corporate logo in 1972. coinciding with the start of the 2003-2004 NBA season. it was decided that the Trefoil would . 1. The Adidas . While Adidas won’t comment on the new site’s features.Adidas’s objective with the new line of footwear is to generate sales leads through its Web site. despite the EPS decline in 2004. citing competitive pressure.92 per share to the Annual General Meeting of Shareholders on May 10.
Equipment is the ultimate expression of what is uniquely possible by design when form follows function. Equipment The Adidas Equipment line was launched in 1991. Since 1949. In January 1996. A-15 warm-up. the Three-Stripes have been an integral part of our brand and product designs. This logo represents performance and the future of the Adidas brand. Examples of product featuring the Trefoil logo include the Stan Smith. This line of footwear and apparel represents the most unique and functional of Adidas products.only be used on heritage products. printed collateral and corporate signage. the Three-Stripes brand mark became the worldwide Adidas corporate logo. . This logo is used in all advertising. Road Laver. and Classic T-shirt. This trademark has become synonymous with Adidas and its dedication to producing high-quality athletic products to help athletes perform better.
delivering state-of-the-art sports footwear. Today.ADIDAS: OVERVIEW/COMPANY’S FINANCIAL FACTS For over 83 years Adidas has been part of the world of sports on every level. 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. apparel and accessories. The company’s share of the world market for sporting goods is estimated at around 19 percent. SWOT ANAYSIS Strengths: The main strength of Adidas is his Product Quality. Weakness: The major weakness in the Adidas is the manufacturing of the products of Adidas is not done in India itself it is being import hence the cost become high . with total net sales of £182 million. The company has a good brand image in the market. the publicity and the advertisement is also very good and lastly company hold a heathly market share in the market.
But this is not a case with Adidas hence Reebok has a extra advantage over Adidas.In my opinion the company must introduce more rage or more variety in the market to compete with their competitors 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. In a Bata showroom u can find Reebok shoes and other products.. Opportunities: Adidas does have many products for the urban segment or poor people. the company Reebok not only use its outlet for the sale of their product but also use some other shoes company outlet like “Bata”. India is more a rural country.If these two weakness in the company can be eradicated then the company may earn high profit and better market status. 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. but there are hardly any product or we can say that there are no products for this segment. . Another major weakness in the company is that it is not catering to all the segments.and the margin of profit becomes low that’s why company must give a deep thought on manufacturing their products in India.
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. .
I Also Got Some Of The Information From The Other Resources Of The Corporate Office Like : Company Journals Company Catalogs Questionnaire (Structured & Non Disguised) .RESEARCH METHODOLOGY STAGE ONE The project study started with collection of Secondary Data. Stage Two I visited the Adidas India Ltd.. which is located In GK-1 (new Delhi). I Also Met Some Of The Marketing Executives Who Helped Me Getting The Required Information. The sources for the secondary data are as follows: Data Sources News Papers Magazines Internet Press articles on Adidas.
. And Other Related Sources. 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 20 people).
Sales of Footwear accounted for 45% of 2004 revenues. Production and marketing of sports equipment.46 billion Finnish Markka [US$ 1. and Amer Group PLC which is based in Finland (2007 sales of 9.87 billion of which 73% was Footwear).57billon] of which 24% was Racquet Sports). . of the United States (2008 sales of $14 billion of which 69% was Footwear). This analysis compares Adidas with three other sport shoe and apparel manufacturers: Nike Inc. footwear and apparel under the brand names of Adidas. 35% and Sales of Hardware. Note: not all of these companies have the same fiscal year: the most recent data for each company are being used. Reebok International Ltd. Salomon. Taylor Made and Mavic. Sales of Apparel. 20%. (B) Competitor Analysis Adidas-Salomon AG operates in the Men’s & boys’ clothing sector.FINDINGS Company research report (A) Company Description Adidas-Salomon AG(ADIDAS). of the United States (2007 sales: $5.
sales increased 36.7% from the 2.00 million euro. Sales at Adidas appear to have some seasonally: during each of the previous 5 years. This is an increase of 2.23 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008 In 2010.0% and 32. sales at Adidas have increased compared with the same quarter in the previous year. Recent Sales at Adidas (Figures in Billions of Euro) 7.53 6. sales in Latin America were up at a rate that was much higher than the company as a whole: in this region.86 8. sales have been highest during the third quarter.(C) Sales Analysis During the first quarter of 2006. Adidas also experienced significant increases in sales in Asia-Pacific.0% of the annual sales. Adidas reported sales of 7. D.94 7.0% to 571.49 billion Euro in sales at the company during the first quarter of 2005. Sales at Adidas have increased during each of the previous five years . sales at Adidas totalled 2. This represents an increase as of in 2006.23 6. .56 billion euro. During the previous 17 quarters.06 6. which has accounted for between 28. when the company’s sales were 7.86 billion Euro for the year ending December of 2007. since 2003.23 billion Euro.
while a substantial 30% comes from the United States. Adidas has stock traded on exchanges in Frankfurt and Pairs. followed by the United states. and its ticker symbol is ADDDY. Nearly 55% of Adidas revenues come from Europe. Adidas is the leading producer of sporting goods in Europe and it is second in the overall world market. and the rest from Asia. Asia 5% Europe 40% US 30% UK 25% . with the smallest percent of Adidas’ sales coming from Asia. just behind Nike. and only 9% of revenues come from a growing Asian market. The pie chart below shows exactly how the ownership of the company is spread out across the world.GROWTH Adidas is a constantly growing company. Most of the ownership comes from Europe. it is much like US based competitor Nike. For anyone not familiar with the structure of this company (since it is not based out of the USA). Adidas sales have grown significantly each year from 1994 to the present. It is global in scope with the majority of its sales coming from Europe. while 37% come from the Americas.
How do u rate the company marketing strategy as compare to the other competitors company like Nike.? . sales have grown rather exponentially. but how much and how fast? As you can see from the graph of net sales over the past five years. DATA ANALYSIS 1. 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. The company has to become innovator not follower they must do something differently to come with the flying colors. but from Adidas’ marketing efforts to make it most popular sporting goods brands. although growth slowed in 1999. Reebok etc.Adidas is a growing company. This growth in sales comes from not only an improving world economy.
* Out of 20 people 9 had said Adidas have a good marketing strategy and should continue like this only. 4 said Reebok is good and 1 said others. 6 had said Nike is more better then Adidas. others 5% reebok 20% adidas 45% adidas nike reebok others nike 30% .
happy not happy not happy 15% happy not happy happy 85% .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 20 people 17 person are satisfy with the quality and the price of the product and other says that they are not satisfy.
20% 0% happy not happy 80% .Do u think that the advertisements and the brand ambassador of the company is good enough? * Out of 20 people 16 person said yes they like the advertisement very much and rest said no they don’t like them.
What things you keep in mind while purchasing shoes will it be quality. price or design? * Out of 20 people 17 person had said that the product must have good quality and good design and other said they purchase these shoe for status symbol only. 14% 0% quality other factor 86% .2. advertisement.
20% nike 50% 30% reebok others LIMITATIONS . which shows that the main competitor of Adidas is Nike. They have given different reason for that some said Nike and Adidas are have same range of products and there quality and prices is also same. 6 said Reebok and 4 others. If u have to purchase shoe except Adidas which shoe it will be and why? * Out of 20 people 10 have said Nike.3. so different people have different opinion.
. No particular limitation or shortcoming was realized during the analysis. The research project has been completed with ease and comfortably. enough justice could not be done to the project. due to time constraints. Also.
Having to spread its workforce. Recently. how successful companies are in . In other words. The knowledge. Companies. homogeneity. As the world grows to become one. In the case of Adidas. As Adidas has grown worldwide. diversity in the workplace has appeared to emerge as an issue.CONCLUSIONS ADIDAS in INDIA has always been driven by its Value-for-money strategy. many problems will arise that cannot be solved. including Adidas are no longer homogenous in the sense that their companies have grown worldwide. Adidas has come to depend on intangibles. it has faced such problems already and how they have dealt with them is with flexibility and calmness. The company needs to identify critical success factory and work assiduously towards achieving it. And as a result. in an increasingly heterogeneous and global world. 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. 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. it has had to deal with problems of heterogeneity vs. worldwide experience and diversity that an Adidas employee can bring to the table are valuable.
Because of this necessity. new ideas. Great changes occur in this industry and as a result.the global world is increasingly derived from intangibles. Adidas is greatly affected by these external influences since indeed it is a global company. This is a result of good global business. Who leads this knowledge and maintains diversity are the managers. such as these. For some it is not common knowledge that Adidas is a German company. . that organizations cannot own. Adidas has created a product that is global and with that diversity and knowledge greatly affect the company. 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. knowledge is greatly valued. intuition and inspiration are an asset that is a necessity in this industry and to remain a global company. yet they too are facing new changes.
Doubledigit growth from Salomon is projected as a result of the continued innovative strength and the increasing profile of their products.S.RECOMMENDATION For 2011 the Adidas brand’s new divisional structure will be in place to start delivering positive results for the Group. . gross margins are expected to remain within a range of 41% to 43%. The integration of Mavic with Salomon. but the rejuvenated Adidas has climbed to within easy reach of Reebok. Adidas America will remain a challenge but nevertheless will deliver qualitative sales improvements in the second half of 2010. Adidas is currently ranked third in almost every category in the global athletic shoe industry. have continue in 2005. with further synergies between the two brands. they rank second only to Nike in terms of sales. Puma and Easy Spirit. increased marketing and sales support will target ambitious golfers. In addition to these positive top-line developments. and as a result net income is projected to increase by 15%. operating expenses will decline as a percentage of sales. and solid growth in all the major golf markets is expected to continue.. The main competitors of Adidas include Nike and Reebok However. other smaller competitors include Fila. compared with the 40% for the fearsome Nike. Adidas commands only 5% of the athletic shoe business in the U. which began in 2002. Top-line growth is expected in all other regions. However. At Taylor Made-Adidas Golf.
They can sustain losses for years to come in order to gain market share.which has been struggling in the past couple of years. QUESTIONNAIRE 1. How do you rate the company marketing strategy as compare to the other competitors company like Nike. What they are doing at present. ADIDAS in INDIA has always been driven by its Value – for-money strategy. Adidas. Small companies will be sidelined totally and will exit from the sports market altogether. Louis-Dreyfus also fired management in Asia. is building up distribution networks to cover every nook and corner of the country . Aside from cutting the whole line of German senior management. Louis-Dreyfus. But the battle has only started. Reebok etc. who failed to match competitors’ low costs in subcontracting shoemaking to local companies.? . Gear. Since acquiring their current president. Adidas is steadily regaining market share lost to other brands such as L. and the foreign sports companies are here for the long term.A. although with a much smaller market share than they have at present. has competed with a whole new strategy. The company needs to identify critical success factory and work assiduously towards achieving it. a wholly owned subsidiary.Only those Indian manufactures which have a strong focus on manufacturing and technological upgradation will survive in the long run.
BRUCE J. • V. MICHALL J. SECOND EDITION. What things u keep in mind while purchasing shoes will it be quality.J. WILLIAM STANTON. Do you 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 4. MARKETING MANAGEMENT. • . price or design? Quality Other factor 5.WALKER FUNDAMENTAL OF MANAGEMENT.S RAMASWAMY AND S. EDITION 2005.ETJEC. NAMAKUMARI MARKETING MANAGEMENT. If u have to purchase shoe except Adidas which shoe it will be and why? Nike Others 6. advertisement. What do u think that the company Adidas must do to improve its marketing strategy? ______________________________________________________ ___________________________________________________ Reebok BIBLIOGRAPHY Books: PHILIP KOTLER. Adidas Reebok Nike Others 2.
adidas.indiatimes.webcrawler.N COMPETITION IN INDIAN INDUSTRY.com www.com www.com www.com Magazines A&M Business India India Today Business Today Newspapers The Times of India The Hindustan Times The Economic Times From Company Company Journals Company Catalogs .indiainfoline. Web Sites www.google.com www.• RAVICHANDRAH.
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