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A Project Report

On

MARKETING MIX OF ADIDAS

(PRODUCT)

Submitted in partial fulfilment of the requirements for the award of degree of

BBA (General)

By

RONIT SAINI

Semester – 4th

121020034

Batch – 2020-2023

Under the supervision of Project Guide

: DEEPAK PARASHAR

State Highway -22, Bahadurgarh Jhajjar Road, Haryana-124507

Phone: 01276-699700, 01-15
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Declaration

I hereby declare that the project report entitled “Field Study

(Retail)” submitted by me to
MR. AMIT NAGPAL; Programmed In charge Department of
Management; Jagannath Institute of Management Science; in partial
fulfillment of the requirement for the award of the degree of BBA. In
Management department is a record of actual project work carried out
by me under the guidance of MR. DEEPAK PARASHAR. I further
declare that the work reported in this project has not been submitted and
will not be submitted, either in part or in full, for the award of any other
degree in this institute or any other institute or university.

Ronit Saini

(Name & Signature of Candidate)

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To be filled in by Faculty In charge

This project report has been completely drafted by _____________(name of student) under
my guidance . He has been regular and sincere during the entire duration of work (service-
community) . He has put complete effort in completing the project and I confirm that it is

complete and original in each aspect.

Deepak Parashar

( Name and signature of faculty in charge)

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Report Approval Form

(Field Study-Retail)

To be Filled in Study-Retail

Name : Ronit Saini Course : BBA

Batch : 2020-2023 Section : (A)

Roll No : 121020034 Contact No : 8894314399
Field Study : _______________________________________________________ Project Title. :

_______________________________________________________

Declaration:

I hereby confirm that this Project Report has been entirely drafted by me under the guidance of my
Faculty In charge Mr. Deepak Parashar on the basis of and during my Working on marketing mix in the
Adidas Stores (Name of Field Study). This project report has neither been copied nor produced through
any unfair means. This project report is complete and original to the best of my knowledge and bears no
resemblance with other project reports regarding title, date and contents. I will be solely responsible if
my Project Report gets rejected by the University due to any course.

___________________________ _________________

(Name and Signature of Student) (Date of Submission)

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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been
possible without the kind support and help of my friends. I would like
to extend my sincere thanks to all of them.

I would like to thank “Mr. Deepak Parashar” for her guidance and
constant supervision as well as for providing necessary information
regarding the project and also for her support in completing the
project.

I also thank for her continual guidance, encouragement, support and

valuable suggestions.

Ronit Saini

(BBA)
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Table of Contents

Chapters Particulars Page no.

1 • Introduction to Retail Industry 7-14

1.1 History of retail sector in India
1.2 Growth of retail sector in India
1.3 About Adidas
1.4 Departments in the store
1.5 Adidas products
1.6 SWOT analysis of Adidas

2 • Marketing Mix (Product) in Adidas

2.1 4ps of marketing 15-19
2.2 Adidas Product Strategy
2.3 Adidas Place Strategy
2.4 Adidas Price Strategy
2.5 Adidas Promotion Strategy

3
• Conclusion 20

4 • Recommendation 21-23
4.1 Questions
4.1 Bibliography
4.2 Annexure
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CHAPTER - 1

INTRODUCTION TO RETAIL INDUSTRY

1.1 HISTORY OF RETAIL SECTOR IN INDIA

Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its
GDP. The Indian retail market is estimated to be US$ 600 billion and one of the top five Retail
markets in the world by economic value. India is one of the fastest growing retail Markets in
the world, with 1.2 billion people. As of 2003, India’s retailing industry was essentially owner
manned small shops. In 2010, larger format convenience stores and super markets accounted
for about 4 percent of the industry, and these were present only in large urban centers.India’s
retail and logistics industry employs about 40 million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand
retail forbidding foreign groups from any ownership in supermarkets, convenience stores or any
retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic
process. In November 2011, India’s central government announced retail reforms for both
multi-brand stores and single-brand stores. These market reforms paved the way for retail
innovation and competition with multi-brand retailers such as Walmart Carrefour and Tesco, as
well single brand majors such as IKEA, Nike, and Apple .The announcement sparked intense
activism, both in opposition and in support of the reforms. In December 2011, under pressure
from the opposition, Indian government placed the retail reforms on hold till it reaches a
consensus.

In January 2012, India approved reforms for single-brand stores welcoming anyone in the world
to innovate in Indian retail market with 100% ownership, but imposed the requirement that the
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single brand retailer source 30 percent of its goods from India. Indian government continues the
hold on retail reforms for multi-brand store.

1.2 GROWTH OF RETAIL SECTOR 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. Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57
were approved and implemented. 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 % 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. 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 organized 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 organized retail competition and with a
ban on foreign direct investment in multibrand 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 realize 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 organized retail. 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
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a major transformation and growth. The e-commerce players have grown tremendously,
consolidation and mergers 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 unorganized retail market, which is
around 85% of the total retail sector. By 2021, the share of organized retail market is
projected to increase to 2225%.
This will bring down unorganized retail market’s share down to 77%.

1.3 ABOUT ADIDAS

Adidas AG is a German multinational corporation, founded and headquartered in

Herzogenaurach, Bavaria, 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 8.33% stake of the
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 Gebrüder Dassler Schuhfabrik (“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.

1.4 Departments In the Store

Adidas has a great depth of products in relation to its breadth. Adidas has three main product
lines – footwear, apparel and accessories, and they are all focused on a specific type of
fashion (sportswear). Even though this may not seem like a lot, within those product lines are
an extensive product mix, where products come in different sizes, colours and features
(differentiated between female and male). For example, under apparel, there are both male
and female clothing (jackets, shirts, pants) and within that the products come in many
different colours and sizes.
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Adidas Football

Absolutely, football is the hottest sport of the world. That means football has a huge
consumer groups and worldwide attentions, especially during the periods of major sporting
events such as the
FIFA World Cup, UEFA Champions League and etc. So football is clearly one of adidas’ key
strategy priorities. More specifically, adidas’ main strategy is to be partners including
football events (e.g. FIFA World Cup, UEFA), national federation (e.g. defending FIFA),
leagues (e.g. Major League Soccer in USA), clubs (e.g. Real Madrid, FC Bayern Munich)
and individual players (e.g. Thomas Müller, Steven Gerard). Adidas football always occupies
a mass part of sales among all products.

Adidas Basketball

Adidas is committed to strengthening its position in basketball by expanding its footprint in the
critical North American market and capitalizing on the growing popularity of the sport in the
emerging markets. To achieve this, adidas Basketball strives to build brand equity by
leveraging its status as the official NBA outfitter, capitalizing on relationships with some of
the most promising stars of the NBA such as Derrick Rose and Dwight Howard, and building
the best product in the game.
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Adidas Running

Running continues to be high on adidas’ agenda and is crucial to the brand’s success moving
forward. Adidas’ philosophy is to inspire and enable runners on all levels, with the aim to be
the most trusted and desired runners’ brand in the world. Adidas sees significant market share
opportunities among casual runners and young multi-sport runners in the future. To achieve
growth and market share increases, adidas promotes by developing adiZero and Climacool
ranges.

Y-3

Y-3 targets a sophisticated, forward-thinking fashion consumer and has enabled adidas to enter
the premium sports fashion market segment.

1.5 Departments In Store

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Adidas store is majorly divided into three departments

1. Men section

2. Women section

3. Kids section

4. Clothing & Accessories

1.6 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 position (Nike at # 1 and ESPN at # 2) with a brand
value of $12.9 Billion. In 2020, Adidas was ranked the 51st most valuable brand in the world.
[1]

An Iconic Brand with a Prestigious Legacy: Adidas has nurtured a strong and prestigious
legacy and heritage over its long, illustrious history by influencing and shaping numerous
aspects of society across the world.

New Products Innovation: Since its founding, Adidas has prioritized the quality of its
products over everything else. In 2021, EUR 130 million was invested in R&D (0.6% of its
annual net sales) and EUR 115 million in 2020. High-quality, innovative products are one of
the driving forces behind its ever-growing customer base.

Diversified Portfolio: Even though the Adidas brand is restricted within the sportswear
industry, the company’s products are diversified. It offers multiple products that are designed
to cater to a wide range of sports, including footwear, apparel, and hardware accessories.
Footwear represents 53%, Apparel represents 41% and Accessories and Gear represents 6%
of Adidas annual sales of € 21.2 Billion.
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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.

Expensive Products: Adidas charges a premium or high prices for its products, which has
alienated low-income consumers. Only upper- and middle-income group customers can
afford over a $100 shoe.

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.
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OPPORTUNITIES
E-commerce: In recent years, the number of consumers who shop online or use e-commerce
sites has increased significantly. Adidas incorporated various e-commerce such as
Instagram’s checkout feature into its distribution network, leading to over all 19% in online
sales (€ 3.9 Billion) in the fiscal year 2021.

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: The main threat facing Adidas is increased competition due to globalization and
technological advancements, which has enabled entry and penetration of small and medium
companies. This implies that Adidas has to compete against main rivals such as Nike, Under
Armour,
Puma, Lululemon, Patagonia while fending-off new entrants and penetrators.

Loss of Trademark: In 2019, Adidas lost the three-strip logo trademark case in the General
Court of the European Union, which exposes the brand to the threat of imitation.
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Exchange Rates: Fluctuations of major currencies such as the

Euro and the US Dollar can negatively affect Adidas’s profits since it operates in the global
marketplace.

CHAPTER 2 :

MARKETING MIX(PRODUCT) IN ADIDAS

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several
other Ps like Packaging, Positioning, People and even Politics as vital mix elements.
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4P’s of marketing mix :

• Price: refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply – demand and a host of other direct and
indirect factors. There can be several types of pricing strategies, each tied in with an overall
business plan. Pricing can also be used a demarcation, to differentiate and enhance the image
of a product.

• Product: This refers to the item actually being sold. The product must deliver a
minimum level of performance; otherwise even the best work on the other elements of the
marketing mix won’t do any good.

• Place: This refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good distribution or
‘place’ strategy. Retailers pay a premium for the right location. In fact, the mantra of a
successful retail business is ‘location’.

• Promotion: This refers to all the activities undertaken to make the product or service
known to the user and trade.

Adidas Product Strategy :

The Adidas group has 4 main subsidiary’s. The first is its own brand name – Adidas, which is
present in clothes as well as footwear. The second is Reebok which has overtaken Adidas and
is one of the leading subsidiary’s in the Adidas group. The 3rd is Rockpot which specializes in
outdoor footwear, apparel’s and accessories and 4th is Taylor made which is focused on
golfing clothes, equipment etc. Out of all the above subsidiary’s, Reebok is the strongest
followed by Adidas.

Adidas has various products. The major product of Adidas is off course their footwear.
Coming in various design and style, Adidas footwear is robust and athletic. The secondary
product of Adidas is apparel’s and accessories. Apparel’s like T-Shirts, jackets, sweatshirts,
shorts etc are in great demand. Where Reebok is stronger in footwear, Adidas is stronger in
apparel’s.
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The aim of Adidas is to give the best footwear to their customers which has the combination
of technology and design. These products are not need based. In fact, the shoes are bought by
customers to satisfy their wants and desires. Similarly, the apparel’s are targeted towards
comfort during heavy activity. However, although the main target is sports, the apparel’s are
frequently used as a style statement by youngsters.

Adidas Place Strategy :

The major way in which Adidas is sold is through retail outlets. Adidas has its own exclusive
stores in which the material is provided directly from the company. On the other hand, many
multi brand showrooms will also have Adidas apparel’s and footwear on display. These multi
brand showrooms get the products from a distributor. The third and last mode of distribution
is online. The products are sold through online medium via fashion stores like myntra.com as
well as the online website of Adidas. Thus the distribution channel of Adidas is as follows

1) Manufacturing > Adidas outlets > End customer

2) Manufacturing > Distributor > Multi brand showrooms

3) Manufacturing > Online fashion websites / Adidas website > End customer

Due to the excellent brand equity of Adidas, the operating margins are fairly high thereby
keeping the distribution channel motivated. A happy distribution channel means better
promotion for the company.
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Adidas Price Strategy :

Adidas, because of its style, design and promotions uses skimming prices as well as
competitive pricing. For run of the mill products, Adidas uses competitive pricing keeping in
mind competitors like Nike, Reebok and Puma. But for products which are newly introduced
in the market and are uniquely designed, Adidas uses skimming price.
Apparel’s of Adidas constantly use skimming price and are higher priced due to brand equity
of Adidas in the apparel’s market. The target customer for Adidas is the upper middle class
as well as high end customers. Adidas never uses penetrative pricing because that will affect
the brand equity of Adidas. In fact, the higher price point helps in the price quality approach
and psychologically, customers think that a higher price will mean better quality as well.

Adidas Promotion Strategy :

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Adidas markets through various marketing vehicles but the majority of marketing is
concentrated on television and product placements. The creative team of Adidas is known to
pump adrenaline in their customers through ads which are well made, very creative and filled
with energy. These ads attract the customers towards the brand by sending the right
marketing message to the customer.

The tagline of Adidas “Impossible is nothing” is in itself a very powerful statement for the
brand. After television, product placement is the second line of promotion for Adidas. The
popularity of the brand is because it ties up with the top players across the world such as
Lionel messi, Ronaldinho, Sachin tendulkar and various others. At the same time, Adidas
also sponsors teams and some of the top teams include Real Madrid, France, Great Britain (in
football), England and South Africa (in cricket) and several others. Here is a list of all the
sponsorships done by Adidas. Below the line marketing of Adidas includes some very
creative outdoor campaigns as well as events marketing. Sales promotions and trade
promotions are also regularly offered by Adidas to their channel partners to promote the sales
of the brand. This concludes the marketing mix of Adidas.
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CHAPTER – 3

CONCLUSION

Based on the all the data I collected, I can conclude that in overall customers are quite satisfied
with ADIDAS’s products and services. Customers have no doubt in the durability of the
material used in Adidas products, however, in terms of price and design, Adidas might need to
put in more effort and come out with a newest design that can attract more customers. Adidas
can also launch a promotion or give a special price offer in a certain period of time to increase
the sales volume and attract more customers.

In conclusion the company’s income statement, customer feedback , goodwill and sales record
show that Adidaa has been able to increase its profits while maintaining and in some cases
even decreasing the company’s expenses and liabilities.
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CHAPTER – 4

RECOMMENDATIONS
Since Adidas is an expert in sports performance sector, Adidas can expand their market by
invest in manufacture nutrition supplements that’s specially design for different kind of sport
athletes. And their athletes will consume them for better performance, this is indirectly
promoting their products quality. We are recommending Adidas to open their own gymnasium
branches which is a new market and new product service as diversification. Adidas can focus
to emerge their market to China and India as these countries having high population with
increasing buying power and now they are more aspiring to western lifestyles. Adidas can
invest more in R&D sector to discover more environmental friendly material to manufacture
their product such as now they are developing the Adidas Future craft Bio fabric, a
biodegradable running shoe. Adidas should concentrating more on the technology. Recently
they can build up a creative design of growing more Smart Shoes for their consumers. These
shoes will realize an up heavalin the field of sports in light of their expanded performance and
dependability.
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QUESTIONS

Q. How do you deal with customers and sell your products?

Answer- we have a various varieties of products and we deal in our best quality products , so
that our customer could also be satisfied and next time he will buy our product and he can
gain trust on our products.

Q. How do you promote your brand ?

Answer- we promote our brand through various modes of production like- advertisement ,
hosting events , bannering etc.

Q. How the place matters in opening the franchise?

Answer- location matters the most in opening the new store at different places because if the
store opens in urban areas there is lack in sales and people don’t like to prefer to eat candy
and cookies so we prefer to open our franchisee in rural areas as compare to urban areas.

BIBLIOGRAPHY :

LINKS :

1).https://www.investopedia.com

2).https://www.adidas.in

3).https://adiblogs.com

4).https://. Marketing 91.in

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News :

1) ABP News

2) BBC NEWS UK

3) CNBC

Magazines :

1) VOGUE

2) ROLLING STONE
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ANNEXURE