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A MARKET SURVEY REPORT ON

CUSTOMER SATISFACTION TOWARDS ADIDAS

Submitted To:

COLLEGE OF MANAGEMENT AND COMPUTER APPLICATIONS, MORADABAD In Partial Fulfillment of the Requirement of the Degree of Bachelor of Business Administration (BBA) SESSION: 2010-2013 Department of Management TEERTHANKER MAHAVEER UNIVERSITY DELHI ROAD, MORADABAD
Project Guide: Project Incharge:

Ms. Prineeta Rastogi

Mr. Mohit Rastogi


(Course Co-ordinator, B.B.A.)

Submitted By:

Akash Kumar
B.B.A. V Semester Roll No.

CERTIFICATE

This is to certify that Mr. Akash kumar

is pursuing three year full time

Bachelor of Business Administration (BBA) Course from Teerthanker Mahaveer University, Moradabad as regular student, in session (2010-2013). In compliance with the provision/guidelines of Teerthanker Mahaveer University, Moradabad, He/she has been assigner a market survey project. The project work has been genuinely carried out by the student for the during specified by the university. He/she has made sincere efforts in the completion of the project work.

MS. PRINEETA RASTOGI Project Guide

STUDENT DECLARATION

I Akash Kumar hereby declare that the research work presented in this project report entitled Customer Satisfaction towards Adidas. for the fulfillment of the award of Bachelor of Business Administration from Teerthanker Mahaveer University; Moradabad. The project embodies the result of original work and studies carried out by me and the contents of the project do not form the basis for the award of any other degree to me or to anybody else.

Akash Kumar BBA 5th Sem

ACKNOWLEDGEMENT
It gives me immense pleasure and privilege to acknowledge my deepest sense of gratitude towards all those who helped me in the successful execution of this project.

I would like to thanks Chancellor Sir, Shri Suresh Jain, Group Vice Chairman Mr. Manish Jain, Additional Director Dr. Vipin Jain for their able guidance. I also extend my gratitude towards the H.O.D. Dr. M.P. Singh and my course co-ordinators Mr.Mohit Rastogi who entrusted me for the completion of this project. I am highly indebted to my project guide, Ms. Prineeta Rastogi whose constructive counseling and able guidance helped me immensely in bringing out this project in the present form. And lastly the entire faculty member and Mr. Sanjeev Singh (Librarian) & the entire Lab staff for providing me this opportunity and expose me to industrial culture. The acknowledgement would be incomplete without thanking my family and friend who were a big support throughout.

Akash kumar BBA 5th SEM

PREFACE

Theoretical knowledge without practical knowledge is of little value. In order to achieve positive & concrete results along with theoretical concept the exposure of real life situation existing in corporate is very much needed. To fulfill this need the management course has a provision for the practical market survey. I thank my institute to provide us such opportunity having market survey in our course so that students can have real feeling of a researcher.

In the coming pages an attempt has been made to present a comprehensive market survey report is concerning different aspects.

EXECUTIVE SUMMARY
Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products. Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920s. For over 80 years, Adidas has been part of the world of sports on every level, delivering state of-the-art sports footwear, apparel and accessories.

This project is based on the survey, which was done in the Moradabad city. The main aim of the survey to find out customer satisfaction towards Adidas. We have covered almost all the aspects, which are related to the customer satisfaction and Adidas. The company profile and product range is given in the beginning of the report the data have been collected by help of questionnaire with sample size of 100, which is given in the report. The collected data have been analyzed and shown in the form of pie chart.

CONTENTS

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

Introduction Company Profile Objectives of the study Literature Review Research Methodology Data Analysis & Interpretation Findings/ Conclusion Suggestions & Limitation References/ Biblography Annexure- Questionnaire

8. 9. 10.

INTRODUCTION

INTRODUCTION
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Measuring customer satisfaction Organizations need to retain existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the researcher

with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement in terms of their perception and expectation of performance of the service being measured. Arguably, consumers are less complex than some of these surveys tend to portend. They are basically in two simple states; satisfied or not satisfied. On or off, just like a switch. A business can measure its customer satisfaction index by relating the aggregates of satisfied customers versus dissatisfied customers. Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change. Competitors that are prospering in the new global economy recognize that measuring customer satisfaction is key. Only by doing so can they hold on to the customers they have and understand how to better attract new customers. The competitors who will be successful recognize that customer satisfaction is a critical strategic weapon that can bring increased market share and increased profits.

The problem companies face, however, is exactly how to do all of this and do it well. They need to understand how to quantify measure and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, analyze and use the data as a strategic weapon to drive the business, no firm can be effective in this new business climate. Plans constructed using customer satisfaction research results can be designed to target customers and processes that are most able to extend profits. Too many companies rely on outdated and unreliable measures of customer satisfaction. They watch sales volume. They listen to sales reps describing their customers' states of mind. They track and count the frequency of complaints. And they watch aging accounts receivable reports, recognizing that unhappy customers pay as late as possible--if at all. While these approaches are not completely without value, they are no substitute for a valid, well-designed customer satisfaction surveying program. It's no surprise to find that market leaders differ from the rest of the industry in that they're designed to hear the voice of the customer and achieve customer satisfaction. In these companies: Marketing and sales employees are primarily responsible for designing (with customer input) customer satisfaction surveying programs, questionnaires and focus groups. Top management and marketing divisions champion the programs. Corporate evaluations include not only their own customer satisfaction ratings but also those of their competitors. Satisfaction results are made available to all employees.

Customers are informed about changes brought about as the direct result of listening to their needs. Internal and external quality measures are often tied together. Customer satisfaction is incorporated into the strategic focus of the company via the mission statement. Stakeholder compensation is tied directly to the customer satisfaction surveying program. A concentrated effort is made to relate the customer satisfaction measurement results to internal process metrics. To be successful, companies need a customer satisfaction surveying system that meets the following criteria: The system must be relatively easy to design and understand. It must be credible enough that employee performance and compensation can be attached to the final results. It must generate actionable reports for management.

Defining customer satisfaction

Because the concept of customer satisfaction is new to many companies, it's important to be clear on exactly what's meant by the term. Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service. The

achievement of customer satisfaction leads to company loyalty and product repurchase. There are some important implications of this definition: Because customer satisfaction is a subjective, no quantitative state, measurement won't be exact and will require sampling and statistical analysis. Customer satisfaction measurement must be undertaken with an understanding of the gap between customer expectations and attribute performance perceptions. There should be some connection between customer satisfaction measurement and bottom-line results. "Satisfaction" itself can refer to a number of different facts of the relationship with a customer. For example, it can refer to any or all of the following: Satisfaction with the quality of a particular product or service Satisfaction with an ongoing business relationship Satisfaction with the price-performance ratio of a product or service Satisfaction because a product/service met or exceeded the customer's expectations Each industry could add to this list according to the nature of the business and the specific relationship with the customer. Customer satisfaction measurement variables will differ depending on what type of satisfaction is being researched. For example, manufacturers typically desire on-time delivery and adherence to specifications, so measures of satisfaction taken by suppliers should include these critical variables.

Clearly defining and understanding customer satisfaction can help any company identify opportunities for product and service innovation and serve as the basis for performance appraisal and reward systems. It can also serve as the basis for a customer satisfaction surveying program that can ensure that quality improvement efforts are properly focused on issues that are most important to the customer.

Customer Satisfaction Measurement Facts


A 5-percent increase in loyalty can increase profits by 25%-85%. A very satisfied customer is nearly six times more likely to be loyal and to repurchase and/or recommend your product than is a customer who is just satisfied. Only 4 percent of dissatisfied customers will complain. The average customer with a problem eventually tells nine other people. Satisfied customers tell five other people about their good treatment.

Objectives of a customer satisfaction surveying program

In addition to a clear statement defining customer satisfaction, any successful surveying program must have a clear set of objectives that, once met,

will lead to improved performance. The most basic objectives that should be met by any surveying program include the following: Understanding the expectations and requirements of all your customers Determining how well your company and its competitors are satisfying these expectations and requirements Developing service and/or product standards based on your findings Examining trends over time in order to take action on a timely basis Establishing priorities and standards to judge how well you've met these goals

Before an appropriate customer satisfaction surveying program can be designed, the following basic questions must be clearly answered: How will the information we gather be used? How will this information allow us to take action inside the organization? How should we use this information to keep our customers and find new ones? Careful consideration must be given to what the organization hopes to accomplish, how the results will be disseminated to various parts of the organization and how the information will be used. There is no point asking customers about a particular service or product if it won't or can't be changed regardless of the feedback. Conducting a customer satisfaction surveying program is a burden on the organization and its customers in terms of time and resources. There is no point in engaging in this work unless it has been thoughtfully designed so that only relevant and important information is gathered. This information must allow the organization to take direct action. Nothing is more frustrating than having information that indicates a problem exists but fails to isolate the specific cause. Having the purchasing department of a manufacturing firm rate the sales and service it received on its last order on a scale of 1 (terrible) to 7 (magnificent) would yield little about how to improve sales and service to the manufacturer. The lesson is twofold. First, general questions are often not that helpful in customer satisfaction measurement, at least not without many other more specific questions attached. Second, the design of an excellent customer satisfaction surveying program is more difficult than it might first appear. It requires more than just writing a few questions, designing a questionnaire, calling or mailing some customers, and then tallying the results.

Understanding differing customer attitudes The most basic objective of a customer satisfaction surveying program is to generate valid and consistent customer feedback (i.e., to receive the voice of the customer, which can then be used to initiate strategies that will retain customers and thus protect the most valuable corporate asset--loyal customers). As it's determined what needs to be measured and how the data relate to loyalty and repurchase, it becomes important to examine the mind-set of customers the instant they are required to make a pre-purchase (or repurchase) decision or a recommendation decision. Surveying these decisions leads to measures of customer loyalty. In general, the customer's pre-purchase mind-set will fall into one of three categories--rejection (will avoid purchasing if at all possible), acceptance (satisfied, but will shop for a better deal), and/or preference (delighted and may even purchase at a higher price). This highly subjective system that customers themselves apply to their decisions is based primarily on input from two sources: The customers' own experiences--each time they experience a product or service, deciding whether that experience is great, neutral or terrible. These are known as "moments of truth." The experiences of other customers--each time they hear something about a company, whether it's great, neutral or terrible. This is known as "word-of-mouth."

CUSTOMER SATISFACTION IN 7 STEPS Its a well known fact that no business can exist without customers. In the business of Website design, its important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because its critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved. 1. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. If youre not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. Its important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone theyve actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, youre well on your way to a sale. 2. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers queries within the space of a few hours, but at least email or call them back and let them know

youve received their message and youll contact them about it as soon as possible. Even if youre not able to solve a problem right away, let the customer know youre working on it. A good example of this is my Web host. Theyve had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologized repeatedly, which was nice. Now if they server had just gone down with no explanation I think Id have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didnt seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service. 3. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. Its very important to be friendly, courteous and to make your clients feel like youre their friend and youre there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object it happens to all of us. Its vital that you keep a clear head, respond to your clients wishes as best you can, and at all times remain polite and courteous. 4. Have a Clearly-Defined Customer Service Policy This may not be too important when youre just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesnt work, then what? Should they contact different people for billing and technical enquiries? If theyre not satisfied with any aspect of your customer service, who should they tell?

Theres nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site and anywhere else it may be useful. 5. Attention to Detail (also known as The Little Niceties) Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and arent always cost effective, but remember to do them. Even if its as small as sending a Happy Holidays email to all your customers, its something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued. 6. Anticipate Your Clients Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. Take this as an example: youre working on the front-end for your clients exciting new ecommerce endeavor. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images youve used on the site. A note accompanies it which reads:

Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics Ive used on the site. Hopefully youll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way. 7. Honour Your Promises Its possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates.

COMPANY PROFILE

COMPANY PROFILE

Adidas Inc. is a marketer of sports apparel and athletic shoes. The German manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. In keeping with the brand image is its association with the distinctive logo and its advertising slogan, "Impossible is Nothing." In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion. At the critical time of global economic crisis, Adidas will react to the consumers pessimistic attitude and stressful emotion during this period. It may become a good chance for Adidas because it can take advantage of its previous advertising way of Impossible is Nothing campaign by sponsoring sports stars to express the corporate philosophy of grit, determination, passion and humor, giving people more courage and psychological comfort in face of economic crisis. But besides that, we also focus more about family function especially in Asian countries which emphasize a lot on family, which can provide caring emotional communication. Therefore, from both strong-willed hero worship and water-like fork environment, customers can easily link Adidas image with not only strength, but also warmth. The preferred media we choose are TV, specific magazines, outdoor and internet.

INTRODUCTION
Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920s. While Dassler was in his mothers wash room he decided to begin an athletic shoe. After he made the shoe he had help from his brother and twelve other people to produce around 50 handmade shoes per day. These athletic shoes were made for running and training.

For over 80 years, Adidas has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, Adidas is a global leader not only in the shoe industry, but also in the sporting goods industry. Shoes from the Adidas are available in virtually every country of the world. Oddball is proud to carry quality large size Adidas, (www.oddballshoe.com).

Recently Adidas and the NBA joined forces and made The Brotherhood. The Brotherhood consists of Tracy Mc G Rady of The Houston Rockets, Dwyane Wade of The Miami Heat, Tim Duncan of The San Antonio Spurs, Chauncey Billups of the Detroit Pistons and Gilbert Arenas of the Washington Wizards. When it came down to it Adidas and the NBA came up with the slogan called Basketball is a Brotherhood.

The main focus of The Brotherhood was Adidas to sponsor the NBA. The way these six players were selected was by their athletic ability which is why they are also known as all

stars. Then these six players decided to form a series that would help kids to discover their dream by playing with NBA Stars. A strong advertising and public Relation events makes Adidas as a worldwide recognized brand and it would be more sustainable in the world market.

HISTORY OF ADIDAS The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik, in Herzogenaurach in Germany. Adolf Dassler designed a pair of sport shoes in 1925 and few years later he and his brother Rudolph were selling special shoes for tennis players and began design specific shoes for different sports. The family company split in 1948. After the split, Adolf (Adi) Dassler founded Adidas and his brother Rudolph founded Puma. The three-stripe logo was designed in 1941 by Adi Dassler and he registered it as a trademark for Adidas after the split. The strength of Adidas was its product innovation. Adi Dassler registered more than seven hundred patents. Adidas began selling its shoes in the United States after 1968 and in few years the company dominated the American market. The most important marketing breakthrough was the active promotion of global sporting events, especially the Olympics. The connection of Adidas to the

Olympics has a rich heritage. At the 1972 Olympic game in Munich, every official wore Adidas.

Activities: manufacture and distribution of textiles, shoes and appliances for sport and related products. Adidas has 107 subsidiaries in 20 countries, and exports to 160 countries. Exploitation of the registered trademark Adidas is made where ever it is an opportunity. Activities of the company and its subsidiaries are directed from Adidas-Salomon AG's headquarters in Herzogenaurach, Germany.

Products: Adidas - Footwear, apparel, and hardware such as bags and balls. Salomon Winter sports incl. skis, snowboards, snowblades, ski boots and bindings, inline skates, hiking, apparel. Mavic -Cycle components, Bonfire Snowboard apparel. Arc'Teryx - Outdoor apparel, climbing equipment, Clich - Skateboard equipment, footwear and apparel, Taylor MadeAdidas Golf - Golf equipment, golf apparel, golf shoes and finally, Maxfli - Golf balls, irons and accessories. In 1990, Adidas was holding on to just a two to three percent share of the U.S. market. Between 1988 and 1992 Adidas total sales dropped from nearly $2 billion to $1.7 billion. In the same period, Nikes sales went from $1.2 billion to more than $3.4 billion. From being the U.S. market leader in the late 1970s, Adidass market share dropped to 3 percent in 1992. The European market shares dropped while Nikes shares grew. Adidas also have had problems with the upstream value activities in their value chain. Traditionally, the company have their own factories and wholly owned subsidiaries. What

happened in the '70s and forward, during the Adidas recession, was that Adidas was unable to ship products when it was needed, and they had a long supply chain - it took 18 months to get a new shoe into the market.

SITUATION ANALYSIS

Adidas AG (pronounced [AH-dee-'dahs]; often in English, FWB: ADS) is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylor Made-Adidas golf company, and Rockport. Besides sports footwear, the company also produces other products such as bags, shirts, and other sports and clothing related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike. The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The company revenue for 2008 was listed at 10.799 billion and the 2007 figure was listed at 10.299 billion, or about US$15.6 billion. The situation analysis consists of the market trend analysis and competitor analysis.

MARKET TREND ANALYSIS


Adidas earn from EU 877 million in worldwide sales to EU 9.2 billion in the ten years between 1988 and 1998. The market demand from teenagers who should be Adidas and most important target market increased very fast and Adidas started to expand its targeting market to younger consumers because of its severe competition with Nike and Reebok. Therefore, since the late 1980s, Adidas has worked to transform itself from a brand of sneakers to a product integral to the sports culture. During this stage, the Adidas brand has become so strong as to place it in the rarified air of recession-proof consumer branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble. Consumers are willing to pay more for brands that they judge to be superior in quality, style and reliability. A strong brand allows its owner to expand market share, command higher prices and generate more revenue than its competitors. With its Impossible is Nothing campaign and strong product, Nike was able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent.

Chart-1: Adidas Net Sales data in Euro (million) 2002-06 (Source-www.adidas.com)

COMPETITOR ANALYSIS
Adidas has two lager competitors Nike and Rebook. Besides that it would have several small competitors. A SWOT analysis would be helpful to understand the competitive environment.

SOWT ANALYSIS:
A SWOT analysis comprise of strength, Weakness, Opportunity and Threats. This four trends are analyze below.

Figure: Adidas expense to advertising (billion Euro), (Source-www.wekipedia.org)

STRENGTHS
Largest International portfolio of sport ambassadors. Sponsors football teams with maximum fan following in India and USA. Highest brand image in India according to our survey.

WEAKNESSES
Rigid pricing structure. Our survey shows Nike behind Reebok & Adidas in market share in India. Has not do well in Indian subcontinent market.

OPPORTUNITIES
Has a great opportunity to expand international market. Increasing demand on the sportswear. Positive and increasing market trends can increase through the effective advertising.

THREATS
Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity. The newly born several brands like CAT, GAP has increase their advertising budget in recent years. Amount of competitors increasing day by day.

COMPARATIVE ANALYSIS
Nike centred their brand equity model on the platforms, the endorsement focus strategy, creating a dominant media presence, development of Flagship stores, Nike Town and subbranding. The Adidas strategies were based on, endorsement focus strategy, advertising, sponsorship programs focusing on major global events, sports associations, and teams, and sub-brands.

To create brand awareness both companies have been using endorsement strategies in their brand-building programs. What differs is that Adidas focuses on sponsorship of teams and events e.g. national teams and big sport events like the Olympic Games and different World Championship events. This will help them to create awareness with help from different types of media. In contrast Nike has their focus on individuals like M. Jordan and T. Woods and their success stories.

About the second strategy, advertising. Nikes advertising strategy was to create dominant presence in media. Nike created media presence in several trend setting United States cities. TV ads linking Nike to a city were used, but real drivers were huge oversized billboards and murals on buildings that blanketed cities with messages featuring key Nike-sponsored athletes, not products. Adidas took up the competition with Nike through raising their advertising budget to a level that made it possible to compete with Nike on the same conditions and the same strength as Nike did to capture the consumer interest. Adidas did not just spend more money; they made an impact with brilliant executions. They made TV and other advertising campaigns. The company communicate their heritage of innovation, technology and big success stories with personalities like Emil Zatopek, Mohammad Ali. Adidas tried to spread meanings like We know then- we know now and There is nothing

between you and success, so exceed your own expectations and limitations and Earn it. The success was obvious and after hard work and striving toward a top position in the industry Adidas was back in business.

Nikes third strategy was to develop, flag ship stores, Nike Town shops in bigger citys, first national, and then abroad. Nike was the first company to establish flagship stores and it turned out to be a sensation. Adidas choice was to experiment with sport events, with which they made great success. Examples of that is the Adidas Street ball Challenge a local threeperson team basketball tournament, this event started out as a trail in Berlin in the beginning of the 1990s as one time occasion.

In the mid 1990s it had become a huge sport event with about 500.000 participants all over the bigger cities in Europe. In the finals in Germany it attracted 3200 players and 40.000 spectators. Adidas made hereby a brand-building success.

The Nike customer associated the Nike brand with words like sports, attitudes and life style. Reasons for that is one can relate to or identify one self to Nikes marketing campaigns like Just do it and the companies front athletes like Michael Jordan and Tiger Woods. For Adidas one image study of consumers found the brand very trendy, modern and cool. The survey was made in late 1990s.

All marketing actions that both companies are implementing will hopefully result in loyal customers. Adidas introduced a sub brand in 1990 to serve the high-end products for all categories of shoes and apparel. The Equipment sub brand would represent the best, whatever the product was. The low-end products, for the normal consumer still have a high

technology and level of innovation because of their inheritance of the older innovations and technology from the Equipment line. This strategy made the Adidas brand take on a different meaning; it still meant participation, emotion and performance. This was a success strategy for Adidas so successful that Nike copied their idea and introduced their own line, the Alpha line, based on the same idea.

Nike advanced from $1 billion dollars in 1986 to $ 9.9 billion in 2002, Adidas advanced from $1.7 billion in 1992 to $4.8 billion in 1998. According to sales figures for the both companies, it seems that both Nike and Adidas companies have succeeded to create a brand loyal customer who perceives the Nike and Adidas products as top quality.

ADVERTISING METHOD & MEDIA SELECTION


The media that was used of The Brother Hood will be television, magazines and Internet.

CORE ADVERTISING CONSIDERATION


The core advertising factors of Adidas are as follows. Besides that a huge amount of data about Adidas advertising related activities. As a multinational company Adidas have separate advertising strategy in different area of the world.

MEDIA VEHICLES:
The media vehicles that were used for television will be ABC basketball games, TNT basketball games, ESPN basketball games and ESPN 2 basketball games and ESPNs Sports Center. The media vehicles that

were going to be used for magazines were Sports Illustrated and ESPN Magazine. The media vehicles that are use for Internet were ESPN website (www.espn.go.com), NBA website (www.nba.com), Adidas website (www.shopadidas.com), Sports Illustrated website (sportsillustrated.cnn.com).

ADVERTISING UNIT:
When it came to the advertising unit for television Adidas only runs: 30 seconds ads since most of these ads are played during NBA games. The ads in magazines are full page. When it came to the Internet ads are a top banner. For example, on page five you will see the ad which it a top banner.

SEASONALITY:
Since The Brotherhood is made up of The NBA the seasonality will be during the fourth quarter. The reason for this is that the basketball season begins in October which is in the fourth quarter. The time of day in which The Brotherhood would be run on television is during the evening while the NBA is holding their regular games. When it comes to the Internet The Brotherhood is advertise daily and at all times.

TARGET AUDIENCE:
When it came to any product the audience is very important. You need to know who are going to be interested in the product. When it came down to this The Brotherhood is mostly for boys ages 8-20 and for older males. For example, on page four you will see TMAC jersey for boys 8-20 and older males.

ADVERTISING MEDIA CONSIDERATION


The reason that this media was selected was because television, magazines and Internet were the best way in which Adidas were able to show there customers their products. As you see below the picture on the third page that says Adidas NBA Shop, in order for Adidas to promote the The Brotherhood they had to come up with a slogan in which they called it NBA is a Brotherhood. Besides Adidas have several technique in media selection which have discussed in the following sections.

ADVERTISING MEDIA

Commercial

advertising

media

can

include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web pop-ups, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logo-jets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

One way to measure advertising effectiveness is known as Ad Tracking. This advertising research methodology measures shifts in target market perceptions about the brand and product or service. These shifts in perception are plotted against the consumers levels of exposure to the companys advertisements and promotions. The purpose of Ad Tracking is generally to provide a measure of the combined effect of the media weight or spending level, the effectiveness of the media buy or targeting, and the quality of the advertising executions or creative. Adidas use several advertising media to promote their product in the marketplace. Different advertising media use in the in the market like commercial advertisement, Print media advertisement, covert advertising, Infomercials, Celebrities advertisement, Online

advertisement, Public transport advertisement, e-mail etc.

COVERT ADVERTISING
Covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Adidas also use this advertising technique.

TELEVISION COMMERCIALS
The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The majorities of television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. Adidas has a large amount of TV commercial advertisements in the worldwide TV network like BBC, CNN etc.

INFOMERCIALS
There are two types of infomercials, described as long form and short form. Long form infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long. Infomercials are also known as direct response television (DRTV) commercials or direct response marketing. The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals. Adidas arrange several infomercials in the sports based program.

CELEBRITIES
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. Adidas use David Bekham as their brand ambassador and many more celebrities in every region to promote their product.

ADVERTISING APPROACHES
The positive impact on the market of the Adidas Originals communication approach makes Adidas Originals continue their successful new creative marketing tonality. The Fall/Winter 2005 campaign is, as the one from Spring/Summer 2005, photographed by Karl Lagerfeld and underlines Adidas Originals lifestyle relevance. To Celebrate Originality, and in a playful opposing manner to last season, Adidas has switched from the black and white SS05 executions, highlighted only by the iconic blue Trefoil, to bright and energetic colours in FW05 ads; an engaging creative idea supervised by Adidas Global Creative Director Michael Michalsky and Visionaires Stephen Gan. The shooting took place at Karl Lagerfelds studio in Paris. The frame of the ads shows humour and translates the freshness of the High Energy High Style concept. The result is a new advertising campaign that clearly communicates Adidas Originals street relevancy. Adidas Originals contemporary street wear collections are inspired by the brands historical anecdotes.

The Fall/Winter 2005 ads will break globally in July 2005 issues of key lifestyle and fashion publications such as Kult, Pulp and Black book as well as magazines such as Arena Home Plus and Teen Vogue. All Adidas Originals marketing communication efforts will evolve around three pillars in 2005: to energize, globalize and contemporize Adidas Originals.

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY


To study the consumer perception towards Adidas.

To study consumer satisfaction.

LITERATURE REVIEW

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Introduction of the problem: To study the customer satisfaction towards Adidas

Research design: Research design is simply the framework or plan for a study, Used
guide in collecting and analyzing data. For the study: for conducting that research I selected the Descriptive research design.

Descriptive research design: Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic. That is, analysis of the past as opposed to the future. Descriptive research is the exploration of the existing certain phenomena. The details of the facts wont be known. The existing phenomenas facts are not known to the persons.

Sampling design:
I. Population: Section: Customers of Adidas Extent: Moradabad

II. Sampling unit: The sampling unit is customers of Adidas III. Sample size: The sample size of the report is 100 customers. IV. Sampling method: There are two Method of sampling: 1. Probability sampling: It is based on the concept of random selection of a controlled procedure that assures that each population element is gives a non-zero chance of selection. Probability sampling is of following types:

I) Simple Random IV) Cluster 2.

II) V)

Systematic Double

III)

Stratified

Non probability sampling: Non probability sampling is non-random and subjective i.e. each member does

not have a known non zero chance of being included. Types of non probability sampling: Convenience Judgment Quota For the study: In this report non probability convenience sampling is used to conduct a research.

Data collection method:


Primary data: The primary data are those which are collected afresh and for the first time, and thus happened to be original in character. There are several methods of collecting primary data particularly in surveys. Important ones are: (i) (ii) (iii) (iv) observation method interview method through questionnaires Through schedules etc.

For the study: Schedule method is used for collecting the data while conducting the research. II. Secondary data: The secondary data are those which have already been collected by someone and which have already been passed through the statistical process. Secondary data may either be published data or un published data. Usually published data are available in : (i) (ii) (iii) various publications of central, state, are local government; technical and trade journals; Books, magazines, and newspapers. The sources of unpublished are many; they may be found in diaries, letters, private individuals and organizations.

For the study: Internet is used for collecting secondary data while conducting the research. Data sources- Primary, Secondary. Data approaches- Questionnaire. Sampling unit- customers of Adidas. Sample size- 100 customers. Sample procedure-Non Probability Convenience sampling. Contact method- Direct.

DATA ANALYSIS AND INTERPRETATIONS

DATA ANALYSIS AND INTERPRETATIONS


1. Do you prefer wearing sports shoes?

Options Yes No

Percentage 100% 0%

0%

Yes 100% No

INTERPRETATION:
Most of the customers prefer wearing sports shoes.

2. Which brand you prefer?

Brand Name Adidas Nike Reebok Others

Percentage 90% 5% 5% 0%

5% 5%

0% Adidas Nike 90% Reebok Others

INTERPRETATION:
90% of the people like wearing Adidas shoes.

3. How do you consider the importance of Adidas sports shoes?

Options Comfort Use in sport Durability Any other

Percentage 35% 35% 25% 10%

INTERPRETATION:
Most of the people wear sports shoes for the purpose of comport and while use in sports.

4. Do you think weight is an important factor for choosing brand?

Options Yes No

Percentage 75% 25%

INTERPRETATION:
Few people consider weight is not an important factor while purchasing sports shoes.

5. Do you consider price as an important feature while buying Adidas sports shoes?

Options Yes No

Percentage 65% 35%

INTERPRETATION:
Price is important for people while purchasing Adidas shoes.

6.

If yes, what is highest price range that you are willing to keep as budget when buying Adidas sports shoes?

Prices 1000-1500 2000-2500 2500-3500 More than 3500

Percentage 20% 25% 35% 25%

INTERPRETATION:
Most of the customers prefer 2500-3500 range shoes.

7. Are you satisfied with the price range of Adidas shoes?

Options Yes No

Percentage 70% 30%

INTERPRETATION:
Few people think that the price range of the Adidas shoes is not according to them.

8. If the price of Adidas increases, will you purchase again? Options Same Brand Cheaper Other Brand Percentage 25% 55% 20%

INTERPRETATION:
More than half of the customers prefer to switch to cheaper brand.

9. What things you kept in mind while purchasing Adidas sports shoes?

Options Quality Advertisement Design Variety

Percentage 40% 25% 25% 10%

10% 25% 25%

40%

Quality Advertisement Design Variety

INTERPRETATION:
Quality is the most important factor for most of the people.

10. Are you satisfied with the quality of Adidas sports shoes?

Options Yes No

Percentage 90% 10%

INTERPRETATION:
Few people are not happy with the quality of the Adidas shoes.

11. Are you satisfied with the varieties of Adidas sports shoes?

Options Yes No

Percentage 55% 45%

INTERPRETATION:
Adidas needs to improve its varieties.

12. Does the advertising play a significant role while buying Adidas shoes?

Options Yes No

Percentage 45% 55%

INTERPRETATION:
The above chart shows that 45% of people think that advertising plays an important role while purchasing a brand shoe but 55% of people disagree with point.

13. Is there any impact of celebrities on your purchase of Adidas sports shoes?

Options Yes No

Percentage 35% 65%

INTERPRETATION:
There is as such no significant role of celebrities while purchasing sports shoes.

14. What kind of promotional tool you prefer? Options E-Shopping Free Gift Discount Percentage 15% 25% 60%

15% 60% 25% E-Shopping Free Gift Discount

INTERPRETATION:
Most of the people prefer discount as promotional tool.

15. Do you think Adidas Company has a good scope in India?

Options Yes No

Percentage 70% 30%

INTERPRETATION:
Adidas Company may have good scope in India.

FINDINGS

FINDINGS
Most of the customers prefer wearing sports shoes.

90% of the people like wearing Adidas shoes.

Most of the people wear sports shoes for the purpose of comport and while use in sports.

Few people consider weight is not an important factor while purchasing sports shoes.

Price is important for people while purchasing Adidas shoes.

Most of the customers prefer 2500-3500 range shoes.

Few people think that the price range of the Adidas shoes is not according to them.

More than half of the customers prefer to switch to cheaper brand.

Quality is the most important factor for most of the people.

Few people are not happy with the quality of the Adidas shoes.

Adidas needs to improve its varieties. The above chart shows that 45% of people think that advertising plays an important role while purchasing a brand shoe but 55% of people disagree with point.

There is as such no significant role of celebrities while purchasing sports shoes.

Most of the people prefer discount as promotional tool.

Adidas Company may have good scope in India.

CONCLUSION
Studying the customer satisfaction survey, analyzing the respondents answers, opinion survey and data analysis it came to conclusion that Adidas has a very good brand image in the mind of customers. Customer is very satisfied with the quality of products and its products are easily available in market this is also find that Adidas has very good variety of shoes and using very attractive celebrity advertisement.

SUGGESTIONS

SUGGESTIONS & RECOMMENDATIONS


Most of the showrooms do not have the full range of Product. So the company should

give more emphasis on it. The customer should be well known about the scheme and promotional strategy

offered by the company. The sales person of the company visit regularly to the dealer show room to check out

customer is benefited through the scheme offered by the company or not. Mostly customers are not able to know about the sale offer by the company so

companies should contact all the customers by feeding data in the data book in the showrooms. And convey all the promotional schemes to all customers.

LIMITATIONS

LIMITATIONS
1. The findings of the study are subjected to bias and prejudice of the respondents.

2. Area of the study is confined to the employees in Moradabad only.


3. Time factor can be considered as a main limitation. 4. The findings of the study are solely based on the information provided by the respondents. 5. The accuracy of findings is limited by the accuracy of statistical tools used for analysis. 6. Findings of the research may change due to area, demography, age condition of economy etc.

BIBLIOGRAPHY

BIBLIOGRAPHY
BOOKS: Kothari C.R., Research Methodology- Methods and techniques, new age international publishers, 2007, 2nd edition, pp. 26, 95, 111. Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, international edition, McGraw Hill, New York, NY and London. Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth Edition, Pearson Prentice Hall, 2005, Part II, pp. 71-340. Chisnall, P.M. (1985). Marketing: A Behavioural Analysis. 2nd edn. McGraw-Hill.

ARTICLES Ms. Lakshmipriya, Ms. Neena.S, MBA IV Semester, Department of Management Studies, Acharya Institute of Management & Sciences, 1st Cross, 1st Stage, Peenya, Bangalore-560 058

WEBLIOGRAPHY http://en.wikipedia.org/wiki/Customer_satisfaction http://www.customersatisfaction.com/ http://www.adidas.com

ANNEXURE

QUESTIONNAIRE
Dear respondent, I am the student of TMU (Moradabad) conducting a survey on Customer satisfaction towards Adidas. Kindly spare few minutes to fill up this questionnaire. Any information provided by you will be used for academic purpose only. Name: Age: Gender Occupation Location Contact No.

1. Do you prefer wearing sports Shoes? Options Yes No Percentage

2. Which brand you prefer? Brand Name Nike Reebok Adidas Others Percentage

3. How do you consider the importance of Adidas sports shoes? Options Comfort Use in sport Durability Any other Percentage

4. Do you think weight is an important factor for choosing Adidas shoes? Options Yes No Percentage

5. Do you consider price as an important feature while buying Adidas sports shoes? Options Yes No Percentage

6.

If yes, what is highest price range that you are willing to keep as budget when buying sports shoes? Prices 1000-1500 2000-2500 2500-3500 More than 3500 Percentage

7. Are you satisfied with the price range of Adidas shoes? Options Percentage

Yes No

8. If the price of Adidas increases, will you purchase again? Options Same Brand Cheaper Other Brand Percentage

9. What things you kept in mind while purchasing Adidas sports shoes? Options Quality Advertisement Design Variety Percentage

10. Are you satisfied with the quality of Adidas sports shoes? Options Yes No Percentage

11. Are you satisfied with the varieties of Adidas sports shoes? Options Yes No Percentage

11. Does the advertising play a significant role while buying Adidas shoes? Options Yes No Percentage

13. Is there any impact of celebrities on your purchase of Adidas sports shoes? Options Yes No Percentage

14.What kind of promotional tool you prefer? Options E-Shopping Free Gift Discount Percentage

14. Do you think Adidas Company has a scope in India? Options Yes No Percentage

Any suggestion about Adidas (if any)

Signature Thank You