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ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher (SAUMYA) who me the
golden opportunity to do this project of retail store on “ADIDAS” who also helped me in
completing my project. I am really thankful to them. Secondly, I would also like to thank my
parents and friends who helped me a lot in finalizing this project within the limited time
frame.

PARUL GANDOTRA
1.1 HISTORY OF RETAIL INDUSTY

For nearly as long as people have existed, they have been sharing, bartering, selling, and
consuming resources.

To trace the complete history of commerce back to its inception, we must travel to a time
when wooly mammoths still walked the Earth. People exchanged cows and sheep in trade
as far back as 9000 BC. The first proper currency extends as far back as 3000 BC in
Mesopotamia.

The first retail stores take up the mantle a bit further down the line. By 800 BC in ancient
Greece, people had developed markets with merchants selling their wares in the Agora in
the city center.

These ruins are of an ancient Greek agora. People would come there not only to shop but to
socialize and participate in government.
Flash forward a couple thousand years and we have our modern mammoths: retail giants
like Walmart, Costco, and Target.

1.2 GROWTH OF RETAIL IN INDIA

India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it
required government approval. The approval requirement was relaxed, and automatic
permission was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8
billion in foreign direct investment, representing a very small 1.5% of total investment flow
into India.[21][22]

Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were
approved and implemented.[23] For a country of 1.2 billion people, this is a very small
number. Some claim one of the primary restraints inhibiting better participation was that
India required single brand retailers to limit their ownership in Indian outlets to 51%. China
in contrast allows 100% ownership by foreign companies in both single brand and multi-
brand retail presence.

Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the
highest in the world, because of very limited integrated cold-chain and other infrastructure.
India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric
tons. However, 80 percent of this storage is used only for potatoes. The remaining
infrastructure capacity is less than 1% of the annual farm output of India, and grossly
inadequate during peak harvest seasons. This leads to about 30% losses in certain
perishable agricultural output in India, on average, every year.[21][24]

Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent
of 100 percent. There has been no interest in foreign direct investment in cold storage
infrastructure build out. Experts claim that cold storage infrastructure will become
economically viable only when there is strong and contractually binding demand from
organised retail. The risk of cold storing perishable food, without an assured way to move
and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of
organised retail competition and with a ban on foreign direct investment in multi-brand
retailers, foreign direct investments are unlikely to begin in cold storage and farm logistics
infrastructure.

Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a
number of intermediaries involved in the traditional Indian retail chain, norms are flouted
and pricing lacks transparency. Small Indian farmers realise only 1/3rd of the total price paid
by the final Indian consumer, as against 2/3rd by farmers in nations with a higher share of
organised retail.[21] The 60%+ margins for middlemen and traditional retail shops have
limited growth and prevented innovation in Indian retail industry.

In the last decade, the Indian retail industry has witnessed a major transformation and
growth. The e-commerce players have grown tremendously, consolidation and merges too
were witnessed in this space. On the other hand, several international retail brands entered
the Indian market. Likewise, domestic brands too have flourished.

Still, India largely continues to have an unorganised retail market, which is around 85% of
the total retail sector. By 2021, the share of organised retail market is projected to increase
to 22-25%. This will bring down unorganised retail market’s share down to 77%.

1.3 INTRODUCTION OF RETAIL OUTLET

Adidas is a German multinational corporation founded and headquartered

in Herzogenaurach Germany, that designs and manufactures shoes, clothing and
accessories. It is the largest sportswear manufacturer in Europe, and the second largest in
the world, after Nike. It is the  holding company  for the Adidas Group, which consists of
the Reebok sportswear company, 8.33% of the German football club Bayern München,
and Runtastic , an Austrian fitness technology company. Adidas' revenue for 2018 was listed
at €21.915 billion.

The company was started by Adolf Dassler in his mother's house; he was joined by his elder
brother Rudolf in 1924 under the name Dassler Brothers Shoe Factory. Dassler assisted in
the development of spiked running shoes (spikes) for multiple athletic events. To enhance
the quality of spiked athletic footwear, he transitioned from a previous model of heavy
metal spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to
use his handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in
the
relationship between the brothers, Adolf created Adidas, and Rudolf established Puma,
which became Adidas' business rival.

Adidas' logo is three stripes, which is used on the company's clothing and shoe designs as a
marketing aid. The branding, which Adidas bought in 1952 from Finnish sports
company Karhu Sports became so successful that Dassler described Adidas as "The three
stripes company".

Adidas has global corporate headquarters in Germany, and many other business locations
around the world such as Portland OR, Hong Kong, Toronto, Taiwan, England, Japan,
Australia, and Spain. In 2005, Adidas introduced the Adidas 1, the first ever production shoe
to use a microprocessor Dubbed by the company "The World's First Intelligent Shoe", it
features a microprocessor capable of performing 5 million calculations per second that
automatically adjusts the shoe's level of cushioning to suit its environment. The shoe
requires a small, user-replaceable battery that lasts for approximately 100 hours of running.
On 25 November 2005, Adidas released a new version of the Adidas 1 with an increased
range of cushioning, allowing the shoe to become softer or firmer, and a new motor with
153 percent more torque

On 11 April 2006, Adidas announced an 11-year deal to become the official NBA clothing

provider. The company has been making NBA, NBDL, and WNBA jerseys and products as
well as team-coloured versions of the "Superstar" basketball shoe. This deal (worth over
$400 million) took over the previous Reebok deal that had been put in place in 2001 for 10
years.
In November 2011, Adidas announced that it would acquire outdoor action sport
performance brand Five Ten through a share purchase agreement. The total purchase price
was US$25 million in cash at closing.[34]

By the end of 2012, Adidas was reporting their highest revenues ever and Chief Executive
Herbert Hainer expressed optimism for the year ahead. [35]

In January 2015, Adidas launched the footwear industry's first reservation mobile app. The
Adidas Confirmed app allows consumers to get access to and reserve the brand's limited
edition sneakers by using geo targeting technology[
1.4 VAROUS DEPARTMENT IN ADIDAs

1.5 PRODUCTE

1.6 PRODUCTS OF ADIDAS

Products of adidas may include - apparel , sportswear under sportswear it includes

association football, baseball, cricket, golf, gymnastic, lacrosse, running, skateboarding,
tennis, kabaddi.

 APPAREL

Adidas sells a range of clothing items, varying from men's and women's t-

shirts, jackets, hoodies, pants and leggings.
The first Adidas item of apparel was the Franz Beckenbauer tracksuit created in 1967.
Adidas AG is the largest manufacturer of sports bras in Europe, and the second largest
manufacturer in the world.

 SPORTSWEAR

ASSOCIATION FOOTBALL
One of the main focuses of Adidas has always been football kits, and the associated
equipment. Adidas remains a major company in the global supply of team kits for
international association football teams and clubs. Adidas makes referee kits that are used in
international competition and by many countries and leagues in the world.
 BASEBALL

Adidas has also provided baseball equipment and sponsors numerous players of Major
League Baseball and Nippon Professional Baseball in Japan. Adidas Baseball hardgoods are
licensed to Dick's Sporting Goods. From 1997 to 2008, Adidas sponsored New York Yankees.

CRICKET

Adidas began manufacturing cricket footwear in the mid 1970s, with their initial target
market being Australia. Their shoes were a radical departure from traditional leather cricket
boots which had remained basically unchanged for decades, being lighter and more flexible
but also offering less toe protection, so that it became not uncommon to see batsmen who
had been struck by the ball on the foot hopping around in pain. Having continued to
manufacture cricket footwear for many years, in 2006 the company finally entered the field
of bat manufacture in 2008 and currently their bat range includes the Pellara, Incurza, Libro
and M-Blaster models.

In the 1990s, Adidas signed the superstar Indian batsman Sachin Tendulkar and made shoes
for him.[51] From 2008 until his retirement, Adidas had sponsored the cricket bat used by
Tendulkar. It created a new bat, 'Adidas MasterBlaster Elite', personalized for him.

GOLF

Adidas Golf manufactures golf clothing, footwear, and accessories. Men's and women's
equipment includes footwear, shirts, shorts, pants, outerwear (wind suits), base layer and
eyewear.

GYMNASTICS
From 2000 to 2012, Adidas has provided men's and women's gymnastics wear for Team
USA, through USA Gymnastics. USA Gymnastics and Adidas sponsorship concluded at the
end of 2012. In 2006, Adidas gymnastics leotards for women and Adidas men's competition
shirts, gymnastics pants and gymnastics shorts have been available in the United States,
with seasonal leotards offered for Spring, Summer, Fall and Holidays. Adidas previous
collaborated with GK Elite, since Spring 2013, Adidas gymnastics products have been
available worldwide through Elegant Sports.

Ice hockey

Adidas has been providing uniforms for the  National Hockey League since the 2017-18
season, replacing Reebok.

LACROSSE

In 2007, Adidas announced its entering to the lacrosse equipment, also sponsoring the

Adidas National Lacrosse Classic in July 2008 for the top 600 high school underclassmen
players in the United States. The company made their self into their own brand such as
"Adidas Lacrosse", getting several scholarships.
SKATEBOARDING

Adidas Skateboarding produces shoes made specifically for skateboarding, including the
redesign of previous models for skateboarding. The brand also releases signature models
designed by team riders.

KABADDI

Adidas entered Kabaddi which is still a non-Olympic sport but highly popular in the Indian
subcontinent and Asian countries. In 2014, with the launch of Pro Kabaddi League a city
based franchise league in India, kabaddi took the region with storm. In 2015, they tied up
with Mumbai-based franchise U Mumba.[64]

"The association of kabaddi with adidas is a clear exemplification of the growth of the sport
over the last two years," shared U Sports CEO, Supratik Sen.
  ACCESSORIES

Adidas also designs and makes slide-style sandals, mobile accessories, [65] watches, eyewear,

bags, baseball caps, and socks. As well, Adidas has a branded range of male and
female deodorants, perfumes, aftershave and lotions.

Adidas announced they would be launching a new $199 Fit Smart wristband in mid-August
2014. The wristband will pair with Adidas's miCoach app, which acts as a personal trainer.
It also include accessories like : Adilette, Santiossage, and Adissage.

1.5 SWOT ANALYSIS OF ADIDAS

STRENGTHS

 Brand Value: Adidas is one of the most valuable brands in sports. According

to Forbes, it is ranked at 3 positions with a brand value of $6.8 Billion.

  Strong financial position: With its 2400 store globally accounting $4.3billions,

the company is in strong financial position.

 Legacy & heritage: With decades of heritage & legacy, Adidas has travelled a

long way to establish itself as a youthful brand. The brand was started in 1949 and
has travelled a long way since then.

 Diversified portfolio: Company has multiple product portfolio’s with varied

range of footwear & accessories under brand name Adidas (premium segment) &
Reebok (mid range).

 Distribution network: By selling it from online stores to company owned

stores to supermarket stores, Adidas has an effective distribution system for their
products available through different channels.

 Young Customers prefer Adidas: The consistent focus on product quality and

customer experience has enabled Adidas to nurture a global and loyal customer
base, particularly teens and young adults between 16 and 24 years in urban areas.

WEAKNESSES

 Supply Chain Shortage: Adidas outsources the production of most of its

products to 3rd party or independent manufacturing suppliers, mainly in China,

 Cambodia, and Vietnam. It has exposed Adidas to the risk of overdependence on
foreign suppliers.

 Premium price range: High price range due to innovative technology &

Production methods have made the brand affordable to limited customers only,
especially in developing countries.

 Limited Product Line: Adidas Group has only Adidas brand and Reebok brand

under its portfolio, which has restricted the company within sports footwear, sports
apparel, and accessories. Therefore, a decline in demand for sports-related products
can be disastrous to Adidas.

OPPORTUNITY

 Changing Lifestyle: With the saturation of developed economies, changing

taste & preferences, education & changing lifestyle of developing economies, there
is a steep rise in the demand of premium goods & services.

 Market development: Entering into new markets will be the only way to

succeed in the future because developed economies are already having high
competition.

 E-commerce: In recent years, the number of consumers who shop online or

use e-commerce sites has increased significantly. Adidas incorporated Instagram’s

checkout feature into its distribution network, leading to a 40% increase in online
sales in the 1st Quarter of 2019, which implies that it can replicate this success in
other social media platforms such as Facebook and Snapchat.

 Growing Sportswear Industry: Sports and fitness have grown in popularity

with no sign of slowing down soon, which means there will be a consistent increase
in demand for sportswear products and assortments.
THREATS

 Competition: Although Adidas is a global brand but it is facing fierce

competition from other brands like Nike which is No.1 brand and Adidas being in 2nd
Position in this premium segment. Besides this, there is regular competition from
local players, substitutes and market penetrators.

 Supplier Dominancy: Due to majority of its production being outsourced;

Suppliers have more bargaining power then the company.

 Government Regulations: With its 35% products manufactured in China &

93% of production happening in Asia, Import regulations, duty & tariffs plays a
critical role in the pricing and success of the company.
 CHAPTER – 2

CONCEPTUAL DISCUSSION

(PROMOTION MIX)

2.1 PROMOTION

 promotion refers to any type of marketing communication used to inform target

audiences of the relative merits of a product, service, brand or issue, most of the time
persuasive in nature. It helps marketers to create a distinctive place in customers' mind, it
can be either a cognitive or emotional route. The aim of promotion is to increase awareness,
create interest, generate sales or create brand loyalty. It is one of the basic elements of
the market mix, which includes the four Ps, i.e., product, price, place, and promotion. [1]
Promotion is also one of the elements in the promotional mix or promotional plan. These
are personal selling, advertising, sales promotion, direct marketing publicity, word of
mouth and may also include event marketing, exhibitions and trade shows.[2] A promotional
plan specifies how much attention to pay to each of the elements in the promotional mix,
and what proportion of the budget should be allocated to each element.
Promotion covers the methods of communication that a marketer uses to provide
information about its product. Information can be both verbal and visual.
There are three objectives of promotion. These are:[6]
1. To present information to consumers and others.
2. To increase demand.

3. To differentiate a product.
The purpose of a promotion and thus its promotional plan can have a wide range, including:
sales increases, new product acceptance, creation of brand equity, positioning, competitive
retaliations, or creation of a corporate image.