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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
Website: www.jagannathuniversityncr.ac.in
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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)

Report Approval Form

(Field Study-Retail)
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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 visual
merchandising in the Bata 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)

ACKNOWLEDGEMENT
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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)

Table of Contents
Chapters Particulars Page no.
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1 • Introduction to Retail Industry 6-9

2 • About Adidas
10-17

3 • Marketing Mix (Product) in Adidas 18-23

4 • Conclusion 24

5 • Bibliography 25

• CHAPTER - 1
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INTRODUCTION
TO
RETAIL
INDUSTRY

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
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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 single
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brand retailer source 30 percent of its goods from India. Indian

government continues the hold on retail reforms for multi-brand store.

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. 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 % 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
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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 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 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 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 22-
25%. This will bring down unorganized retail market’s share down to
77%.

• CHAPTER - 2
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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
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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.

PRODUCT AND BRAND HISTORY

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.

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
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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.
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Y-3

Y-3 targets a sophisticated, forward-thinking fashion consumer and

has enabled adidas to enter the premium sports fashion market
segment.

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.
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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.

WEAKNESSES

Supply Chain Shortage: Adidas outsources the production of most

of its products to 3rd party or independent manufacturing suppliers,
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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.

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
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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.

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.
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• CHAPTER - 3

MARKETING MIX
(PRODUCT)
IN
ADIDAS
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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.

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’.
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• 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

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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.

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
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helps in the price quality approach and psychologically, customers

think that a higher price will mean better quality as well.

Adidas Promotion Strategy :

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
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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 – 4

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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BIBLIOGRAPHY :

Links :

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

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

3).https://adiblogs.com

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