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Marketing Strategies Of Adidas

NAME : YASH PRABHAKAR HATIM

ROLL NO : 23

CLASS : TYBMS (Marketing)

TOPIC NAME : MARKETING STRATEGIES OF ADIDAS

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Table of Contents

TABLE OF CONTENTS ........................................................................................

The Timeline of the Company ....................................................................................

LITERATURE REVIEW .....................................................................................

ADIDAS SAYS “Nothing compromised. The most innovative Adidas products


created specifically to help make you a better athlete. For Adidas, product is
not just a assortment of few items. But it involves—developing of the right
product – which can then be put to right place & sold with the right
promotion & price
.....................................................................................................................................

2. PRICING ................................................................................................................

3. Place and physical distribution: .............................................................................

A: Place ....................................................................................................................................

Process used – assorting progress...................................................................................

B: Physical distribution .............................................................................................

As per Adidas nearly half of the costs of marketing is spend upon the physical
distribution. To take care of this problem Adidas has appointed marketing
managers who decides how the transporting and storing functions should be
divided within a channel .....................................................................................................

OTHER STEPS.............................................................................................................................
STEPS

THE ADIDAS LOGO ..................................................................................................................

Equipment .................................................................................................................

FEATURES ..........................................................................................................

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Moisture-wicking, antimicrobial ortholite sockliner ..................................................

GLOBAL MARKET SHARES OF VARIOUS BRANDS IN ATHELETIC FOOTWEAR


.............................................................................................................................................................

DEFINE THE MARKET ......................................................................................

Some of the theory we have used in my project are as follows..............................

Theory: what is market research and why it is important ........................................

AIM/OBJECTIVES OF THE MARKET STUDY .........................................................

RESEARCH METHODOLOGY...........................................................................
METHODOLOGY

INTRODUCTION ......................................................................................................

RESEARCH DESIGN: ...............................................................................................

DESCRIPTIVE RESEARCH STUDIES .....................................................................

DATA COLLECTION METHOD..............................................................................


METHOD

RESEARCH INSTRUMENTS....................................................................................
INSTRUMENTS

QUESTIONNAIRE DESIGN......................................................................................
DESIGN

SAMPLING ...............................................................................................................

SAMPLEING PLAN....................................................................................................................
PLAN

SAMPLE DESIGN .....................................................................................................

CLUSTER SAMPLING..............................................................................................
SAMPLING

SAMPLING SIZE ........................................................................................................................

DATA ANALYSIS......................................................................................................
ANALYSIS

1. Which of the following in your opinion potrays itself as the best before consumers?
.............................................................................................................................................................

6. WHO AMsiONG THESE DO YOU FEEL IS THE PERFECT CHOICE FOR


THE BRAND AMBASSADOR OF ADIDAS ? ..............................................................

8. ARE YOU AWARE ABOUT THE ONLINE SHOPPING FACILITY


PROVIDED BY ADIDAS ?...............................................................................................

ANNEXURE.........................................................................................................
ANNEXURE

QUESTIONNAIRE ....................................................................................................

1. Which of the following in your opinion potrays itself as the best before consumers?
.............................................................................................................................................................

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A) LIONEL MESSI ...............................................................................................

B) KARIM BENZEMA ...........................................................................................

C) ACHRAF HAKIMI...........................................................................................
HAKIMI

D) MANIKA BATRA ........................................................................................................

E) PEDRI.............................................................................................................
PEDRI

8. ARE YOU AWARE ABOUT THE ONLINE SHOPPING FACILITY


PROVIDED BY ADIDAS? ...................................................................................

A) YES....................................................................................................................................
YES

B) NO......................................................................................................................................
NO

9. WHICH OF THE FOLLOWING INDUCES YOU THE MOST TO OPT FOR


ADIDAS? .............................................................................................................

A) DISCOUNT OFFERS .......................................................................................

B) SPONSORSHIPS FOR EVENTS ......................................................................

C) ADVERTISEMENTS .......................................................................................

D) ONLINE SHOPPING @ SHOPADIDAS ..........................................................

E) BRAND..............................................................................................................................
BRAND

BIBLIOGRAPHY.................................................................................................
BIBLIOGRAPHY

Web Sites .......................................................................................................................................

Magazines ..................................................................................................................

Newspapers ...............................................................................................................

Books ..............................................................................................................................................

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INTRODUCTION
In the small German village of Herzogenaurach the world began its love affair with Adidas
(Ryno’s Company History). In 1920, Adolf “Adi” Dassler brought to life those three little
stripes. With his brother, Rudolph, Dassler manufactured his first sports shoe, made for
training, after realizing the need for performance athletic shoes. In1948, the Dassler brothers
separated to form their own two separate companies. Dassler formed Adidas and his brother
formed Puma, both headquarters in Herzogenaurach.

The Adidas mission has changed little since founder Adi Dassler began making sports shoes in
the 1920s: to be the best sports brand in the world. The history of Adidas is one of consistently
meeting the evolving needs of the athlete. Focusing more on function and less on fashion,
Adidas strives to provide athletes with shoes that can make a noticeable difference in their
performance. Meeting athlete needs is what makes Adidas the best. Adidas America has
continued to build on this history.

In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing company
founded by former Nike executives Rob Strasser and Peter Moore. Sports Inc. had been working

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in conjunction with Adidas USA on the design, development, and marketing of the Adidas
Equipment line. This line helped rejuvenate and reposition the Adidas brand in the United States
by creating an exclusive line focused on fulfilling the functional needs of the athlete and by
utilizing the best materials and athlete input in the tradition of Adi Dassler. It offered moisture
management, thermal insulation, weather protection, ease of movement, and safety, helping the
athlete to perform more efficiently. After the successful creation and launch of Adidas America

General Information

For over 80 years Adidas has been part of the India of sports on every level, delivering state-of-
the-art sports footwear, apparel and accessories. Today, with total net sales of 6.1 billion and net
income of 208 million, Adidas - Salomon is a global leader in the sporting goods industry and
offers the broadest portfolio of products. Adidas-Salomon products are available in virtually
every country of the world. Their strategy is simple: continuously strengthen our brands and
products to improve our competitive position and financial performance.

The company's share of the world market for sporting goods is estimated at around 15 percent.
Activities of the company and its approximately 100 subsidiaries are directed from Adidas-
Salomon AG's headquarters in Herzogenaurach, Germany. Also located in Herzogenaurach are
the strategic business units for Running, Soccer and Tennis as well as the Research and
Development Center. Additional key corporate units are based in Portland, Oregon in the USA,
the domicile of Adidas America Inc. and home to the strategic business units Basketball,
Adventure and Alternative Sports. The strategic business unit Golf is based in California. The

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business unit Winter Sports is in Annecy, France. The company also operates design studios and
development departments at other locations around the world, corresponding to the related
business activity. Adidas-Salomon AG has approximately 13,400 employees worldwide.

Turnover and Brand Image


Almost 53% of the turnover is from sale of apparel and accessories with the rest from footwear.
The Adidas brand is one of the most popular brands as determined by a within brand survey of
sportswear brands in the year 2008.

The Company

Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called
Adidas India Ltd. and announced its joint venture with Magnum International Trading Company
Ltd. on October 1, 1996. The new joint venture – Adidas India Ltd. – was incorporated with an
initial investment of Rs. 8000 million with Adidas India Ltd. holding 80% of the equity and
Magnum holding the balance 20%. This investment was raised to Rs 475 million with the equity
structure remaining the same. Currently, the total investment stands at Rs. 500 Million with the
equity structure changing to 91.4% by Adidas and 8.6% by magnum.

Adidas’ Range of Products in India

A month after announcing the joint venture, Adidas India Ltd. launched its range of sports
footwear, apparel and accessories in New Delhi on November 1, 1996. Subsequently, Adidas
products were also launched in Mumbai, Bangalore, Chennai, Hyderabad and Calcutta.
Currently, Adidas products are available in 30 cities in India.

The range of Adidas products available in India include sports footwear featuring some of the
most popular innovations and technologies developed by Adidas such as Feet You Wear,
Torsion system and adi wear. The sports footwear available in India includes a wide range of
core categories such as adventure, basketball cricket, golf, indoor, running, tennis, training,
soccer and workout.

Adidas has introduced in India, a wide range of sports wear for both men and women. These
include apparel for athletics, basketball, cricket, golf, running, soccer, swimming, tennis and
training for Men. The women’s range includes apparel for athletics, golf, running, swimming,
tennis, training and workout. Accessories include bag packs, campus bags, medium and large kit

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bags, caps, socks, wrist and headbands. Adidas Markets its products in India through a
combination of mega exclusive stores (area of 1000 sq. feet and above), exclusive stores, multi-
brand stores and distributors. At present, Adidas is available in 75 exclusive outlets out of which
34 are company – owned with 8 new Company – owned stores planned for 2006 and in 450
multi-brand outlets in India.

History of the Company

The Timeline of the Company

1948 -The Dassler and his brother Rudolph and Adolph, separate and two companies. Adi Dassler
forms Adidas-a combination of his nickname, Adi, and the first three letters of his last name a lowercase
“a” is adopted to further distinguish Adidas. He commences production with 47 employees. Rudolph
forms Puma, with its headquarters located across town from Adidas in Herzogenaurach.

1949- Adidas adopts the trademark three-stripes.

1955-The first license is given to a factory in India to manufacture Adidas shoes.

1972 -Adidas introduces the “Trefoil” logo.

1984-Kathe Dassler dies, leaving the company to Horst, the Dasslers’ first-

born. 1987-Horst dies at the age of 51.

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1987-Ron More is brought in from Adidas Canada to run operations and a new facility is
acquired in Warren, New Jersey.

1988-Adidas is incorporated.

1989 -Rob Strasser and Peter Moore of Sports Incorporated present Adidas with the “Equipment”
concept. The footwear and apparel line is introduced in 1991.

1990-Bernard Taupie purchases 80% of Adidas stock.

1993-A group of investors led by Robert Louis-Dreyfus, former head of the British advertising group
Saatchi & Saatchi P.L.C., acquires control of Adidas. Adidas America is formed in February; Rob
Strasser is appointed CEO and Peterr Moore becomes Worldwide Creative Director. Rob Strasser dies on
October 30. Peter Moore is named CEO of Adidas America n November 9, while maintaining his role as
Worldwide Creative Director.

1994-Adidas moves from eighth to third position in Indian Footwear Industry Rankings. Indian
Footwear and apparel sales increase by an estimated 75%.

1995-Adidas goes public on the stock exchange in Frankrurt.

1997-Performance Logo becomes the worldwide Adidas logo.The acquisition of Salomon


broadens the Adidas product range to include Taylor Made for golf products and Mavic for
cycle components. Adidas achieves record sales and passes the 1 billion dollar mark in gross
sales in the India.

2000-Adidas proudly celebrates the 100th birthday of our founder, Adi Dassler

2005.-Sale of Salomon The Salomon Group (including Salomon, Mavic, Bonfire, Cliché and
Arc’Teryx ) is being sold to Amer Sports in October 2005. The new Adidas Group is focusing
even more on its core strength in the athletic footwear and apparel market as well as the
growing golf category. The legal name of the company will change to “Adidas AG” in
May/June 2006.

2006-Adidas-Salomon AG acquires Reebok


The closing of the Reebok transaction on January 31, 2006 marks a new chapter in the history of
the Adidas Group. By combining two of the most respected and well-known brands in the
worldwide sporting goods industry, the new Group will benefit from a more competitive
worldwide platform, well-defined and complementary brand identities, a wider range of
products, and a stronger presence across teams, athletes, events and leagues.

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LITERATURE REVIEW
Brands

Brands were originally developed as labels of ownership: name, term, design, symbol. However,
in present world it is what they do for the people that matters much more, how they project and
engage them, how they define their aspiration and enable them to do more. Powerful brands can
determine success in competitive and financial markets, and undoubtedly become the
organization's most valuable assets.” Kotler”

April 2, 1993, labeled Marlboro Friday, is described by Klein (2000) as the death day of the
brand. On that day, Phillip Morris declared that there will be a 20 per cent price cut of Marlboro
cigarettes in order to compete with cheaper price cigarettes. At the time, Marlboro cigarettes
were known to be notorious for their heavy advertising campaigns, and nuanced brand image.
On that day, the prices of many branded companies Wall street stocks fell: Heinz, Coca Cola,
Quaker Oats, PepsiCo; seemingly the signal of the beginning 'brand blindness'(Klein 13).

Concepts

A brand which is commonly known in the marketplace acquires brand recognition. When brand
recognition builds up to a level where a brand celebrates with a critical mass of positive
sentiment in the marketplace, it is said to have achieved brand franchise. The identification of a
brand without the name of the company being present is one of the goal of brand recognition.
For example, Disney has been very successful at branding with their distinct particular script
font (originally created for Walt Disney's "signature" logo),

Building a Brand

With appropriate senior management commitment, building a relevant and powerful brand for
any consumer-focused company, including a bank, is a reasonable goal. The overall objective is
to change customer behavior, improve business economics, gain competitive advantage and
provide a clear mandate for employees. But this objective means that branding a company and
its products must be more “business science” than “marketing art.” Based on extensive study
and work with clients, Booz·Allen believes there are four components to successfully branding a
company. These steps blueprint the process of developing a concise message or promise that an
institution wants to communicate to its customers, and for executing a strategy that delivers on
that promise.

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The first step in building a branded business is to understand the role of the brand in that
particular business, including the leverage it can provide across markets and product categories.
A brand can provide information and communicate efficiently, qualify a product or service, or
establish differentiation. A truly powerful brand can do all three if necessary. To decide what
role brands should play, it is important to take a dispassionate look at the current status of the
organization and product/service offering—how they are perceived by customers, competitors
and employees. In addition, the institution has to understand what these distinct constituencies
need to know and believe about the brand.

Secondly, brand builders must choose brand architecture consistent with the chosen role, the
institution’s products, services and market landscape. There are three types of brand
architectures: a single brand—one brand that covers the entire product range; tiered brands, with
a parent brand supported by sub-brands for each product line; or multiple brands, with each
product carrying its own brand distinct from the parent. Sony, Home Depot and Visa are
examples of a single brand architecture.

The third step in branding a business and developing a brand strategy is to position the brand to
effectively communicate the value proposition. Critical here is clarity, consistency and
relevance. Volvo (safety), Nike (limitless performance) and Wal-Mart (good deals) are
examples of companies that have clear brand positions. The clarity is achieved through the
consistent use of all marketing levers (e.g. price, product design, image and channel selection)
to drive home a single message.

In the fourth step, a company must develop the programs needed to deliver the brand and the
brand promise. This happens through programs or services that convey the brand message to the
target audience. Nike’s support of grassroots athletic events and Visa’s Olympic sponsorship
illustrate the type of programs needed to creatively deploy brands. Nike helps amateur athletes
perform, while Visa demonstrates its global reach.

Competitive advantage

Competitive advantage (CA) is a position that a firm occupies in its competitive landscape.
Michael Porter says that a competitive advantage, whether sustainable or not, exists when an
organization makes economic rents, that is, their earnings exceed their costs (including cost of
capital). That shows that normal competitive forces and pressures are not able to drive down the
firm's earnings to the point where they cover all costs and just provide minimum sufficient
additional return to keep capital invested. Most kinds of competitive advantages cannot be

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maintained for any length of time because the call of economic rents drives competitors to
duplicate the competitive advantage held by any one firm.Analysis of the factors of profitability
is the subject of numerous theories of strategy including the five forces model pioneered by
Michael Porter of the Harvard Business School.

In 2006, Jaynie L. Smith authored Creating Competitive Advantage (Doubleday). This book
outlines how companies fail to understand their own existing competitive advantages and use
them in sales/marketing. She provides a framework for how companies can evaluate their own
operations and develop competitive advantage/competitive positioning statements to better hone
their sales/marketing messages. Competitive advantage statements help distinguish companies
by highlighting what they offer to the customer using tangible terms and concepts. The next step
is to test those CA statements through independent market research. This allows a company to
understand their customers' hierarchy of buying criteria in an objective indepenedent context.
From there, companies can tailor their CA statements to speak directly to the buying interests of
the customer.

Adidas
By-Vivian Manning-Schaffel
When adidas entered the marketplace some 50 years ago, its focus was to produce shoes crafted
specifically for soccer and running. Establishing the brand as the choice for professional athletes
eventually parlayed into preference in the mainstream.

In the 80's, Run DMC furthered adidas’s street cred with the rap “My adidas,” paying homage to
their favorite shell-toe. But by the early 90's, Nike and Reebok were out-marketing adidas –
even in Germany, its own turf. Kids weren’t interested in the sneakers their parents wore, and
adidas found itself forgotten in the back of the closet, heading for the Goodwill

The new millennium has since brought about an adidas renaissance; the brand has steadily
regained market share over the past five years to become the world's number two athletic shoe
company (behind Nike). How did it go about repositioning to once again be among the coolest
of kicks?

Adidas claims that, "the brand values of the company – authenticity, inspiration, honesty and
commitment – are derived from sport." Historically, this sensibility was demonstrated through
early and continued involvement with Olympic athletes, as well as active sponsorship of major
global sporting events – like the World Cup. Today these events provide an ample playing field

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for sportswear companies to duke it out for representation and thus market share. Adidas’s rapid
growth in Asia, where revenue rose by 15 percent to US$ 878M last year, may be further
propelled in Japan and Korea when those two nations host the World Cup this year – an event
which is expected to garner 2.5M spectators and one billion TV viewers worldwide.

However, the key to revitalized success seems to lie in the considerable endorsement deals
adidas has developed with world class athletes. Recent sports figures representing adidas don’t
only score high marks in their game – they also score high in their celebrity quotient. British
football star David Beckham’s relationship with adidas has no doubt lent itself well to the
brand’s visibility in the UK. Recently dubbed "Captain of England," Beckham led his team to
victory in the 2000 FIFA World Cup. It doesn’t hurt that he’s married to a highly visible, ex-
Spice girl and is often seen in the tabloids sporting the adidas logo. With Europe as adidas’s
largest market, exposure like this reflects in the numbers; sales grew seven percent to US$ 2.7
billion, last year.

Stateside, Kobe Bryant is another example of a winning adidas endorsee. The LA Laker and
youngest NBA all-star player is an athlete with substantial celebrity leverage. This translates
directly into sales, young men who idolize Bryant want to play basketball like he does, and thus
will want to wear what he wears. The equally compelling Russian born, American-bred tennis
star Anna Kournikova also meets these criteria. She’s a young, brilliant professional athlete
whose celebrity extends well beyond the world of tennis – like Bryant and Beckham she’s
captured the public’s interest in mainstream newspapers, magazines and tabloids.

Reinvention was key, not only for the adidas’s marketing strategy, but also for its product line.
On its website, adidas acknowledges that "The markets and industry in which we compete are
transforming rapidly, paced by the evolution – or revolution – in how 'sports' are defined. Team
sports such as soccer and basketball will always be a fundamental part of sporting competition.
Today, however, eclectic, individual, 'no-rules' sports such as snowboarding, inline skating and
surfing have grown into significant categories. Activities such as golf, hiking and mountain
biking, which used to be seen as lifestyle and leisure activities, are now part of mainstream
sports." Increased product offerings in these categories have undoubtedly contributed to a better
score for the brand.

To keep up with the competition, adidas generates close to 60 new foot-friendly designs each
year. The adidas credo is to regard shoes as feet, resulting in a product with superior fit and

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performance capabilities. Tactics have been revised in getting these products out for
consumption. As a result, products have been repositioned in higher-end and sports specialty
stores. As their main competitor has sprinkled flagship NikeTown stores throughout the US,
Europe and Australia, adidas has also embarked on a foray into retail. The first adidas-Solomon
megastore launched in Paris last year to capitalize on the brand awareness in that market; France
scored victories in both the 1998 World Cup and 2000 European Cup football championships.
Word on the street is the brand hopes to eventually roll out this concept to more cities in Europe
and North America.

Adidas continues to prove itself as a brand built to last through a game plan of reinvention. With
the recent acquisition of a lifetime partnership with Orlando Magic's Tracy McGrady
(basketball) and its heavy involvement with 2002 World Cup, it continues to strike savvy deals
that capitalize on the star power of young athletes and increase its visibility in the marketplace.

It appears that team adidas has honed its strategy to become a revitalized contender in today’s
competitive sporting goods market and is now duly recognized as the sneaker of yesterday and
today1

Punchy New Ads from

Adidas Section: UP

Front BRANDING

BATTLES

Tired of being the perennial also-ran to Nike, Adidas-Salomon plans to pump more than $50
million into an ambitious new ad campaign. On Feb. 5, Adidas will kick off a series of TV,
print, and Internet ads featuring Muhammad Ali and his daughter, boxer Laila Ali,
BusinessWeek has learned. Adidas even has a new, Nike-like theme: ``Impossible is Nothing.''

Some ads will include star Adidas athletes with Ali or in their own spots. Others will highlight
nontraditional sports such as skateboarding and athletes overcoming physical handicaps. ``The
challenge for Adidas is daunting,'' says Jeffrey Bliss, president of sports marketers Javelin
Group. ``They have to overcome their own previous marketing missteps and then take on Nike,
which is showing no sign of stumbling.''

The ads are part of Adidas' efforts to reenergize its business in North America. It wants to nearly
double its U.S. market share, to 20%. Despite strong sales of its new Tracy McGrady basketball
1
http://www.brandchannel.com/features_profile.asp?pr_id=71
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sneaker, total North American sales have dropped 16% in the first nine months of 2003. With
Nike controlling 41% of the U.S. footwear market, Adidas execs will need to believe their own
advertising.

The McGraw-Hill Companies, Copyright

photo (black & white): family affair: The campaign will feature Ali and his
daughter, Laila

~~~~~~~~

By Stanley Holmes

Edited By Ira Sager

Adidas Leaps from Hot Sneakers to Warm Jackets

Section: Innovation & Design

Design

The sporting-goods maker aims to climb Alpine heights with a new performance-sports line

Dateline: [Bloomberg) —
Adidas has long been one of the world's premier brands in fashion sport shoes. Now the German
sporting-goods company plans to begin selling high-end mountaineering jackets next year,
muscling in on North Face's turf as outdoor gear grows faster than traditional sporting goods.

Adidas is setting a lofty goal for itself, too. It wants to become a leading brand for so-called
performance-sports gear by 2015, says Rolf Reinschmidt, head of the global outdoor division.

Sales of outdoor gear will rise about 0.7% in Europe this year, outperforming the declining
sporting-goods market, according to industry body European Outdoor Group. The fragmented
nature of the market makes it attractive for adidas. North Face owner VF leads the $59 billion
industry with outdoor-sports sales of $2.74 billion, the association says.

"Adidas is still far behind the specialist labels, but it's coming up," says Andreas Bartmann,
chief executive of Globetrotter, Europe's largest outdoor-products retailer. Globetrotter, in
Hamburg, Germany, will start selling adidas hiking boots next year.

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Revenue Is Up
The new 325-gram Terrex Feather Jacket is designed to protect trekkers at heights of up to
19,685 feet. Like all adidas performance sports gear, the $595 product will initially be available
only in Germany and neighboring Austria and Switzerland, along with Russia, China, and
Korea. From 2012, the entire line will be available globally.

The world's second-largest sporting-goods maker doesn't provide sales figures for its outdoor
unit, saying only that the division's revenue rose in the first nine months of 2009 while overall
sales fell 3.7%. VF, which is in Greensboro, N.C., reported that North Face's third-quarter
revenue increased 10% at constant currency rates, while sales of its Vans label climbed 4% on
the same basis.

Growth in the industry isn't universal. Columbia Sportswear said in October that third-quarter
sales fell 4%, to $434.5 million, and forecast a decline for the year of 8% to 9%. The Portland
[Ore.] company had previously predicted a "low-double-digit" drop in annual revenue.

Solo Ascent

Reinschmidt has led adidas' outdoor sports unit since 2007 and has a team of 40 developing
high-tech apparel and boots. In Europe, adidas increased its spending on marketing this year by
running TV commercials with Alexander and Thomas Huber, brothers who are known for
extreme Alpine climbing. The sporting-goods maker also started sponsoring Reinhold Messner,
who made the first solo ascent of Mount Everest without bottled oxygen.

Adidas Chief Executive Herbert Hainer has said his company would build its outdoor-sports
division using its own brand name and without resorting to acquisitions.

"Adidas is doing a seriously good job as the company tries to take advantage of the increasing
interest for outdoor gear," says Mark Held, secretary general of European Outdoor Group. He
expects the industry's growth to continue into next year. "Even in hard times, people continue
buying outdoor gear to escape for a while from the seriousness of life."

http://www.businessweek.com/innovate/content/dec2009/id2009129 _588770.htm

~~~~~~~~

By Holger Elfes, Dusseldorf, helfes@bloomberg.net

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MARKETING-MIX (FOUR P’S): ADIDAS


1. PRODUCT

Whatever your athletic preference, you can now purchase an extensive range of Adidas
footwear and apparel online. From running shoes to baseball cleats, eye wear to lanyards,
collegiate licensed jackets to good old fashioned cotton T-shirts, all things sport are available at
the Adidas store.

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HOW DO ADIDAS CREATE ITS PRODUCTS

Adidas goal is to create a product that is honest – it must perform. The rule is simple:
form follows function.

Technology and functional design. A development team makes the actual prototypes.
These prototypes are then presented to the retail market by the marketing department.

An Adidas product is the result of the intense thought and creative energy of many
different people. The following is a general outline of how we create our performance-
based products.

1. The marketing department evaluates athletes’ needs and develops a basic


concept of how those needs should be met. This concept is then presented to
the design department.

2. Based upon this concept from the marketing department, the design teams
sketch possible prototypes.

3. The people from design and marketing consider the prototype sketches
together, narrowing the selection to those they anticipate will most
successfully meet athletes’ need

4. improve the prototype.

5. Samples are wear-tested to ensure the product meets Adidas standards for
performance and durability and stands up to the demands of the sport for
which it was designed.

6. Preview samples are presented to key accounts and consumer focus groups for
feedback. Based upon this information, final changes are made.

7. Samples are distributed to Adidas sales representatives for presentation to


retailers.

8. The finished product is delivered to retailers. The development department then


works with the design department to create an actual prototype from the
selected sketches.

9. Three separate groups – marketing, design and development – meet and discuss how
to

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10. improve the prototype.

11. Samples are wear-tested to ensure the product meets Adidas standards for
performance and durability and stands up to the demands of the sport for
which it was designed.

12. Preview samples are presented to key accounts and consumer focus groups for
feedback. Based upon this information, final changes are made.

13. Samples are distributed to Adidas sales representatives for presentation to


retailers.

14. The finished product is delivered to retailers. The development department then
works with the design department to create an actual prototype from the
selected sketches.

15. Three separate groups – marketing, design and development – meet and discuss how
to

As A BRAND

At Adidas –you have got to be sporty. At Adidas the brand awarding is been taken
rather seriously at its headquarters. Adidas wants to bring inline skates into India.
What that kind of stuff got to do with Indian market? Yes, it won’t really be a hot
seller, but it will contribute a lot to Adidas brand image. That’s the Adidas way of
doing it – image is a critical part of branding strategy the world over.

https://www.google.com/imgres?imgurl=https%3A%2F%2Fassets.adidas.com%2Fimages%2Fw_383%2Ch_383%2Cf_auto%2Cq_auto%2Cfl_lossy%2
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%2Fwww.adidas.co.in%2Fmen-football-shoes&tbnid=BifPkXbRRxv5fM&vet=12ahUKEwity5q-
jsD9AhU7DLcAHetdC0EQMygBegUIARCRAg..i&docid=UvGCuDTtfU- Y6M&w=383&h=383&q=adidas%20football
%20shoes&ved=2ahUKEwity5q-jsD9AhU7DLcAHetdC0EQMygBegUIARCRAg

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The idea of the company is to introduce performance specific sports shoes in the
Indian market by building images around the world & at the same time create the
need for these shoes at the ground level. Adidas already has heavy weight sportsmen
such as Sachin Tendulkar, Leander Paes & Mahesh Bhupathi endorsing the brand in
India. They had the image, apart from endorsing the performance element in the
brand. Adidas steps out of crease with a clear sports positioning. Adidas will take on
arch Nike with almost the same positioning. Its working with promising athletes to
give them a taste of its products. Adidas nowadays is capturing an attitude that is
sports related.

Adidas in fact did go through a limited fashion phase. Adidas says – that you are
tempted to make quick buck but we would like to stick to the sports brand image
because that make us fashionable.

For Adidas the product plays an eminent role in the enhancement of


their corporate as well as sports image:
ADIDAS SAYS “Nothing compromised. The most innovative Adidas products created
specifically to help make you a better athlete. For Adidas, product is not just a
assortment of few items. But it involves—developing of the right product – which can

then be put to right place & sold with the right promotion & price.

As studied earlier an Adidas product is the result of the intense thought and creative
energy of many different people. If a company sell an automobile, is it selling a
certain no. of nuts and bolts, some metal sheet, an engine and four wheels? If a
company sell a delivery service, is it selling so much wear and tear on a delivery

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truck and so much operator fatigue? As per Adidas the answer to these question is
instead what we are really selling is the satisfaction, use or profit the customer wants.

Adidas says that all the customer wants is, that whatever product they purchase
should fulfill all their needs and preferences. They don’t care how they were made.
Further they want that when they order something, the don’t really care how much out
of the way the driver had to go or where he/she has been. They just want their
package. That means for them only the final service matters.

As per Adidas the idea of product potential customer’s satisfactions or benefits is


very important. Adidas says that the total product is not just a physical product with
its related features, but it includes accessories, installation, instruction on use, the
package, perhaps the brand name which fulfills some psychological needs a warranty
and confidence that service will be available after the purchase.

2. PRICING:

Adidas is clear, it wants to become the no. one sports brand in India, a choice brand
for all brands. So far so good, but how will it tackle a price conscious market like
India? Adidas feels that being a high energy business Adidas introduces 600-700
articles every six months – enables the brand to remain fresh and bring on an
international and Indians the brand from the price stand point.

Price, that’s the most critical factor in the Indian context. Adidas believes it has to
deliver a functional at an affordable price. It’s a tough job – to maintain the integrity
of the performance and still come out with a product a right price point. Globally
shoes start at $50. But in India as the perceived need is lower, you have to make the
product more affordable.

To tackle this, Adidas came out with speed 2000, a product priced at Rs.995 with the
help of local and Hong Kong source people. Adidas however feels that its just the
matter of time before India coverage’s the world on this front. It is very difficult to
operate on a lower price point and maintain integrity of product, but its been barely 3
years since the sports market has taken off. The original sector is just 20% of the total
market and 80% of the volumes comes from sporty shoes. But our market is
producing products at a price that is relevant to the consumers.

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Adidas feels that as the volume go up, Adidas will try and work out price points as
people graduate with better understanding of quality and price perception. Volumes
are bound to go up. Adidas started at the time when India had no strength out in the
sports products market in 1989 – 90. Its then licensing partner Bata, and it had
limitations of what it could have put behind the brand. So company took the next best
step when the licensing agreement ended to take a bigger share in business. To
conclude we can say that Adidas is putting all efforts to bring down the price
consciousness in the Indian market. Company is trying to make products, which are
easy to afford and still maintain the integrity of their performance.

Growth has been phenomenal for Adidas even given the base is small. In 1998 Adidas
grew by 25%, 1999 by over 50% and this year Adidas is expecting more than 50% in
terms of value in both shoes and apparel, while the industry growth as a best case
estimate has been 20-25%.

3. PLACE AND PHYSICAL DISTRIBUTION:

A: Place
Adidas is very much concerned about its second “p”. as per Adidas place and physical
distribution of the product is something on which almost every company spends a
handsome amount of money.

Hence Adidas takes a good care of its place and physical distribution process. Adidas
has appointed marketing specialists who are taking care of the supply of the product
and their distribution channels and process.

Process used – assorting progress

Entire range, which is available is put together to give a target market what it wants. Marketing
specialists put together an assortment to satisfy some target market. His is usually done by those
who are close to the retailers only.

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B: Physical distribution
As per Adidas nearly half of the costs of marketing is spend upon the physical
distribution. To take care of this problem Adidas has appointed marketing
managers who decides how the transporting and storing functions should be
divided within a channel.

Note: Physical distribution can be varied endlessly in a marketing mix and in a channel system.

Trucks

In Adidas, except the export products, trucks are considered to be the best medium for transport.
The flexibility of trucks makes them really good for moving small loads for short distances.
They can travel on almost any road. According to Adidas they can give extremely fast service.
Also trucks causes less breakage in handling.

4. PROMOTION:
Adidas is one of the India’s biggest company of sports that spends nearly $10 million on its
sales promotion and advertising in Indian Market. Adidas believe that it just cannot be taken
lightly. It is a very important aspect of products life cycle. It is the process which is responsible
for the growth or decline in the sale of the product. Adidas thinks that promotion is
communicating information about the product between the seller and the buyer to change
attitudes and behavior.

To handle the company’s promotional activities Adidas has employed marketing managers,
wherever the Adidas is located. These marketing managers look after process of the promotion
of the products of their company. As per Adidas the marketing managers promotion job is to tell
the target customers that the right product is available at the right place and at the right time and
especially at the right price.

Adidas thinks that only taking the product to the customers is not a task of the
company. But company takes a very important look about how the product works and
this message is communicated to their consumers. Because a wrong message can lead
to the end of their products life.

Sales Promotion
Adidas is the most popular amongst its rival for its excellent sales promotional
activities. As per Adidas they say that they themselves are responsible for the

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encouragement of the customer to by their products. Adidas believes sales promotion


tries to compliment the company’s selling efforts.

STEPS TAKEN BY ADIDAS TO PROMOTE SALES


In the last years the Adidas has almost given sale to its products 6 to 7 times i.e.
almost twice in a year Adidas goes for discount on sales. They arrange contest.

In order to motivate the employees of the company Adidas also prepares


training material for the company’s own sales force. They even design the sales
materials for the company’s own sales force to use during the sales calls.

As per Adidas, people see same message in different ways. They may interpret the
same words differently. So Adidas always tries to deliver the message which
everyone can easily understand.

ADVERTISING

As per Adidas advertising can get results in a promotion blend. Good results are
obtained at a cost of course. The amount spent in the Unites States for advertising is
growing. Continuously, from World War II to 1980 it went from $1 billion to $50
billion. Adidas also spends nearly $2.9 million on its advertising throughout the
world. Adidas in India is spending almost $17 million on advertising.The heavy
weight players like Sachin Tendulkar, Leander Paes and Mahesh Bhupathi are already
attached with their ad-campaigns.

OTHER STEPS
Adidas, the brand with three stripes, seems to use the elements of high-tension in its
ads. Remember the Sachin Tendulkar commercial. How everything is near-frozen, and
the shattering glass signifies release. Release of tension. Adidas gives you a chance
to but the boundaries – in every sphere.

Only now, the setting is not the playground or the track or the court, it is the urban
landscape – with its omnipresent traffic jams, crowded streets and so forth. This way,
Adidas becomes a part of life. Anyone’s life. You don’t have to be the high-voltage
performer to be a part of the Adidas family. And it goes beyond that – Adidas
becomes something that makes you better. Not just as an athlete, but as a sports
person, a better human being.

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One of the advertisement: The spot featuring Boldon, shows him chasing a thief
(who’d stolen a TV set when its owner was in the bath) through the dark streets. To
help a man (the owner, in a towel) in distress. And he uses all the power that he can,
to do what he has to do and what he needs to do. And Adidas helps him perform
better, than he would otherwise have been able to. This is perhaps shown in an
oblique way when the spot ends at the feet of Boldon and the bather.

One is wearing a pair of Adidas shoes while the other is barefoot. Adidas makes you
better, goes the base. In short, the other man could have done as well as Boldon. The
bather reads any man. Any man who wears Adidas. And Adidas goes beyond athletic
performance – it becomes everyday life. In stark reality. Though humorously and
light, it has a deep meaning.

LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING


STRATEGY IN INDIA
Continuing its association with trump card Sachin, the local four-ad print campaign tries to
connect Adidas’ product attributes with Sachin’s magic. “Instead of presenting just one
dimensions :

The first ad connects Sachin’s choice of a heavy bat with Adidas’ Falcon Dorf light weight
shoes. Says the headline: ‘Sachin likes his bat heavy, not his shoe.’ The second new shoe range
to be introduced for the first time in India. Sub-branded ‘Aksu’ and priced at Rs 2,299, these are
athletic sandals primarily meant for water-based adventure sports. Finally, The next ad will
convey that Adidas covers various price points by promoting its existing Portland range priced
at Rs 1,499 and 1,799 (the leather version).

The importance of celebrity sponsorship and events to Adidas is illustrated by Robert Louis-
Dreyfus’ letter in the company’s 1998 annual report :

“When it comes to showcasing our brands, 1998 was truly exceptional. Early in the
year, the Winter Olympics focused the attention of sports enthusiasts on Nagano. In
summer, the Soccer World Cup in France attracted more spectators than any single
sports event before. When the French team, promoting the three stripes, won the
World Cup, we could not have wished for more. These were great times for our
brand.’

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Adidas has reached an agreement with ISL Marketing G of Switzerland to become an official
sponsor of the 2000 UEFA European Championships. Adidas will have access to the official
emblems, mascot and trophy for the design of its own products..

In 1998, the overall Adidas budget for promotion and sponsoring accounted for nearly 15% of
turnover.

The positioning is being communicated through its global campaign-released worldwide in


February 1999 but in India, only in May-as well as through a four-ad print campaign developed
locally by RK Swamy/BBDO. Says G Kanan, general manager, marketing, Adidas: “We are the
only brand with heritage in sports. As a brand, we’re not an attitude that’s fashionable. We’re an
attitude that is relevant all the time.

The campaign also introduces a new brand line for Adidas: ‘Forever Sport’. The line sums up
the “deeply-felt” and “long-term love affair” (it has been involved with sports since 1928) that
Adidas has with sport in all of its forms. Interestingly, the new brand line has been introduced
almost after a decade, when it was using ‘Earn your stripes’ as its tag-line. The company
dropped it during the late 80s after it found that it wasn’t connecting too well with its
consumers.

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THE ADIDAS LOGO

The “Trefoil” was adopted as the corporate logo in 1972. It represents the heritage and history
of the brand. In 1996, it was decided that the Trefoil would only be used on heritage products.
Examples of product featuring the Trefoil logo include the Stan Smith, Road Laver, A-15 warm-
up, and Classic T-shirt.

Equipment

The Adidas Equipment line was launched in 1991. This line of footwear and apparel represents
the most unique and functional of Adidas products. Equipment is the ultimate expression of
what is uniquely possible by design when form follows function.

In January 1996, the Three-Stripes brand mark became the worldwide Adidas corporate logo.
This logo represents performance and the future of the Adidas brand. This logo is used in all
advertising, printed collateral and corporate signage.

Since 1949, the Three-Stripes have been an integral part of our brand and product designs. This
trademark has become synonymous with Adidas and its dedication to producing high-quality
athletic products to help athletes perform better.

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COMPETITIVE ANALYSIS
LIST OF COMPETITIVE BRANDS AND COMPARATIVE ANALYSIS

1. NIKE
2. REEBOK
3. FILA
4. SPEEDO
5. NEW BALANCE
6. SKETCHERS
7. PUMA
Present Situation
Adidas is currently ranked third in almost every category in the global athletic shoe industry.
However, they rank second only to Nike in terms of sales. The main competitors of Adidas
include Nike and Reebok However, other smaller competitors include Fila, Puma and Easy
Spirit. Adidas commands only 5% of the athletic shoe business in the India., compared with the
40% for the fearsome Nike, but the rejuvenated Adidas has climbed to within easy reach of
Reebok, which has been struggling in the past couple of years. Adidas is also steadily regaining
market share lost to other brands such as India. Gear and Fila

The Future

But the battle has only started, and the foreign sports companies are here for the long term. They
can sustain losses for years to come in order to gain market share. What they are doing at
present, is building up distribution networks to cover every nook and corner of the country and,
setting up manufacturing facilities.

Only those Indian manufactures which have a strong focus on manufacturing and technological
upgradation will survive in the long run, although with a much smaller market share than they
have at present. Small companies will be sidelined totally and will exit from the sports market
altogether. ADIDAS in INDIA has always been driven by its Value – for-money strategy. The
company needs to identify critical success factory and work assiduously towards achieving it.

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COMPARATIVE STUDY WITH REEBOK

COMPARATIVE STUDY WITH THE HELP OF SPORTS FOOTWEAR

I. CATEGORY : SHOE (REEBOK)

Reebok and Unit Casual Shoe Mens

(Release Date : Dec. 12, 2004)

Item No. : 1387196

Price : Rs. 3,600.50

Features :

➢ Soft pad

➢ Supple upper bed

➢ Comfort

➢ Support

➢ Moulded EVA sock liner

➢ Moulded Midsole

➢ Cushion

➢ High abrasion rubber outsole

➢ Traction and durability

➢ Style and design

This street inspired footwear was designed for young people who want the style of their gear to
reflect the attitude of their life. This street inspired footwear was designed for young people who want
the style of their gear to reflect the attitude of their life. This G6 lifestyle footwear provides clean, court
inspired designs that mirror distinct style and flavour. Reebok has consented to donate fifty cents of
proceeds of each pair sold to charitable causes.

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CATEGORY: SHOE (ADIDAS)

Adidas supernova T-MAC 3

Item no. : 3636825

Price : Rs. 4,500.00

Features

➢ Comfort

➢ Soft and stretchable mesh

➢ Foot-hugging inner bootie

➢ Optimal cushioning support

➢ Full-grain leather upper with stretch mesh

➢ adiPRENE + forefoot cushioning

➢ Shock-absorbing adiPRENE heel

➢ Moisture wicking, antimicrobial ortholite sockliner

➢ Non-marking carbon rubber outsole

➢ Style and design

This modern classic is the choice of high level professional players all around the world. The
supernova T-Mac3 features the highest quality craftsmanship coupled with pure performance.
The adiPRENE optimizes grip on soft to very soft natural playing surfaces and excellent feel

and fit.

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COMPARISON BETWEEN REEBOK G UNIT CASUAL SHOE MENS, ADIDAS


SUPERNOVA T-MAC3 SHOES AND NIKE SHOES

Reebok Adidas Nike


Comfort   
Support   
Moulded EVA sockliner   
Cushion support   
Supportive pad   
Moulded midsole   
Supple upper bed   
Traction and durability   
High abrasion rubber outsole   
Soft and stretchable mesh   
Foot hugging inner bootie   
Moisture-wicking, antimicrobial ortholite   
sockliner
Carbon rubber outsole   
Fore foot cushioning   
Shock absorbing heel   
Style and design   

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Define the Market


Some of the theory we have used in my project are as

follows: Theory: what is market research and why it is

important.

Market research is a method of collecting data which will make you (as a business) more
aware of how the people, you hope to sell to, will react to your products or services. Market
research will answer questions like:

 Whether your products or services are needed

 Who might want to buy your products

 What age, sex, income occupation etc. are the people I want to sell to.

 If there are changes taking place and how this might affect what you sell

 How well your products or services might sell

 How much demand there is for what you hope to sell

 What price would people be prepared to pay

Conducting market research

There are number of ways in which you can carry out your research but you need to carefully
consider why you made this choice and what you hope the evidence will suggest to you.

Questionnaires and personal interviews are one of the most common ways in which you can
conduct market research, and there are many methods of gathering data this way: Direct
Interview, Mail Survey and Telephone interview. Depending on the type of data you hope to
collect will have a impact on what you choose to use. we have made use of two type of survey
methods, questionnaire and mail survey. We have asked some question about the company by
mail and also by direct contacts. The Question we have asked are given in “questionnaire part”
below.

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AIM/OBJECTIVES OF THE MARKET STUDY

1. To understand why customers buys a particular product.

2. To know the marketing opportunities

3. To understand marketing problems

4. To help in the selection of right course of actions

5. To know about customers acceptance of the product

6. To understand the distribution network

7. To forecast the probable volume of the future sales.

8. To analyze the excepted market share

9. To assess competitive slight policies

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RESEARCH METHODOLOGY
INTRODUCTION:

Research methodology is a way to systematically solve the research problem is to how


research is done scientifically. It consists of the different steps that are generally adopted by
the researcher to the study his research problem along with logic behind them. It is
necessary to the researcher to develop certain tests.

RESEARCH DESIGN:

Research design is a plan to answer whom, when, where, and how the subject under
investigation conceived so as to obtain answers to research questions. The type of research
design involved in this study is descriptive research studies.

DESCRIPTIVE RESEARCH STUDIES:

Descriptive research studies are those studies, which are concerned with describing the
characteristics of a particular individual, or of a group, where as diagnostic research study
determine the frequency with which something occurs or its association with something
else.The studies concerning whether certain variables are associated are example of diagnostic
research studies. As against this, study concerned individual, group or situation are all example
of descriptive research studies. Most of the social research studies come under this category
from the point of view of the research design.

DATA COLLECTION METHOD:

The required data was collected by both the primary and secondary sources. The data objective
are describe from the research objectives and their determination rests mainly on the research
to translate what the decision marker wants into specific descriptive of the needed data.

➢ Primary data is the data gathered for the first time by the researcher by using
questionnaire.

➢ Secondary data, on the other hand, is those which have already been collected by
someone else and which already been passed through the statistical process.

➢ Secondary data pertaining to this study was obtained from research papers, information
available on internet etc.

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RESEARCH INSTRUMENTS:

Instrument : Questionnaires (personal administered)

Instrument Design : close ended Question are used in

questionnaires. QUESTIONNAIRE DESIGN

A well structured questionnaire was used for this study. The types of questions used in the
questionnaire were multiple-choice questions.

1. Multiple-choice questions are question, which contain a list of answer and permit the
subject to select the best answer.

SAMPLING:

Sampling is the process of selecting a sufficient number of elements from the population, so
that a study of sample and an understanding of its properties or characteristics would make
it possible for us to generalize such properties or characteristics to the population elements.

SAMPLEING PLAN:

➢ Sampling technique : Cluster sample

➢ Sample size : 100 units

SAMPLE DESIGN:

A Sample design is a definite plan for obtaining a sample from given population. It refers to
the technique or the procedure the researcher would adopt in selection items for the sample.
Sample may as well lay down the number of items to be included in the sample namely, the
size of the sample.

CLUSTER SAMPLING:

Cluster sampling method suggests, the samples are selected at different stages. In this method,
the population is first divided into different stages. Then from the first stage, a few items are
selected at random based on a specific feature or characteristic. From these in the second stage,
a few elements are selected at random possessing, he characteristic. From which in the third

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stage a few are selected at random satisfying the characteristic and so on to finally make the
necessary selection of samples. All the samples selected at random at different stages will
posses the common characteristic or will be homogeneous on some basis Cluster sampling
involves arranging elementary items in a population into heterogeneous subgroups that are
representative of the overall population. One such group constitutes a sample for study.

SAMPLING SIZE:

The total numbers of respondents are termed as sample size. The sample size for this
analysis is 100 respondents.

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FINDINGS & ANALYSIS


Company research report

(A) Company Description


Adidas-Salomon AG(ADIDAS). Production and marketing of sports equipment, footwear and
apparel under the brand names of Adidas, Salomon, Taylor Made and Mavic. Sales of Footwear
accounted for 45% reveneue; Sales of Apparel, 35% and Sales of Hardware, 20%

(B) Competitor Analysis

Adidas-Salomon AG operates in the Men’s & boys’ clothing sector. This analysis compares
Adidas with three other sport shoe and apparel manufacturers: Nike Inc. of the India (2004 sales
of Rs. 400 billion of which 59% was Footwear), Reebok International Ltd. of the India (2005
sales: Rs. 90 billion of which 73% was Footwear), and Amer Group PLC which is based in
Finland (2005 sales of 6.46 billion Finnish Markka [Rs. 4000 million] of which 24% was
Racquet Sports). Note: not all of these companies have the same fiscal year: the most recent data
for each company are being used.

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DATA ANALYSIS

1. Which of the following in your opinion potrays itself as the best before consumers?

Inference-

We can conclude from the above that majority of the people feel that marketing strategies of
Adidas are better as compared to its major competitors followed by nike and then there is
reebok . other brands include puma , fila , Portland etc

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2. According to you which of the following brands is best in sports wear?

INFERENCE

When a comparision was made on the basis of footwear, we found that the brands Adidas and nike
both attract the people, but Adidas has a slight edge over Adidas,Reebok is the 3rd favorite of the
People followed by puma and fila.

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3. Do you think Adidas provides its customers value for money ?

INFERENCE

When I surveyed the people on the basis of value for money being provided by Adidas majority
of the people were satisfied and agreed that they do get value for money, however 22 % had
bad experience with Adidas

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4. What factor do you keep in mind while shopping from Adidas?

INFERENCE

In the above survey most of the people were of opinion that the shop from Adidas because of the
comfort provided by the company and also the people were very satisfied with the quality ofthe
products. People generally buy during the discount seasons as price is also an important factor while
shopping from the company

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5. If you have to shop for sports wear apart from Adidas which of
the following it will be?

INFERENCE

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6. Whoamong these do you feel is the perfect choice for the brandambassador of
Adidas?

INFERENCE

Out of the various brand ambassadors of Adidas Lionel messi is the favorite among the people
followed karim benzema and Achraf Hakimi. Pedri the spanish footballer and the tennis star are not so
popular among the people as the brand ambassadors

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7. Do the brand ambassador effect your decision to opt for Adidas ?

INFERENCE

In the above survey we found out the brand ambassador endorsing the product does have a
significant impact on the buying decisions of the people.as can be seen from the graph ,39 %
people agree that their choice does get effected by the company’s brand ambassador

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8. Are you aware about the online shopping facility provided by Adidas ?

INFERENCE

When the people were surveyed about the online shopping facility being provided by Adidas we
found out that most of the people were not aware about such a facility being provided by Adidas
.the survey shows that only 28 % were aware about online shopping being provided

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. 9.Which of the following induces you the most to opt for Adidas ?

INFERENCE

From the above we can see that Adidas as a brand attracts the customers the most . the various
discount offers and advertisements also serve as a mean to induce the people to shop from
Adidas. The online shopping facility does not attract a lay customer much to shop from Adidas

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10. According to you, in which category should Adidas venture into?

INFERENCE

From the above we can see that people are of view that Adidas should venture into the
other related field like informals. People also feel that it should venture into apprals like
formal wear and party wear

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11. Which of the following products do you purchase most often from Adidas?

INFERENCE

From the above we can see that out of the various products being provided by Adidas its
sports shoes are the favorite among the people followed by the t-shirts .its other products
like track suits , caps and pullovers are being purchased evenly by the customers

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Additionalproductline

12. Do you think Adidas is able to promote itself in a better way as compared to its
competitors

INFERENCE

Most of the people are of view that the marketing strategy of Adidas is good and the company is
able to communicate to its various customers effective through its various marketing strategies

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SWOT ANALYSIS OF ADIDAS


STRENGTH:

The main strength of Adidas is his Product Quality. The quality and the material uses in Adidas
is very good. The company has a good brand image in the market, the publicity and the
advertisement is also very good and lastly company hold a healthily market share in the market.

Weakness:
The major weakness in the Adidas is that the manufacturing of the products of Adidas is not
done in India itself it is being import hence the cost become high and the margin of profit
becomes low that’s why company must give a deep thought on manufacturing their products in
India.

Another major weakness in the company is that it is not catering to all the segments which I
have already discuss above, If these two weakness in the company can be eradicated then the
company may earn high profit and better market status.

Opportunities:

Adidas does have many products for the urban segment or poor people, but there are hardly any
products or we can say that there are no products for this segment. India is more a rural country,
in the total population of India major part of population lives in rural area and these people can
not afford the costly products of the company like Adidas hence company must target this
particular segment they must introduce the shoes and other product according to their demands.
and also price is one of the major factor which may influence this type of segment hence
company should make their policy accordingly.

Company must also consider the rage of products as compare to Nike and Reebok. In my
opinion the company must introduce more rage or more variety in the market to compete with
their competitors and also the customer have more choices to choice the product from.

Threats:

Adidas does not have strong distribution network as compare to Nike and Reebok in India. Nike
has more number of retail outlet then Adidas and Reebok has a unique distribution network, the
company Reebok not only uses its outlet for the sale of their product but also use some other
shoes company outlet like “Bata”. In a Bata showroom u can find Reebok shoes and other
products. But this is not a case with Adidas hence Reebok has a extra advantage over Adidas.

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RECOMMENDATIONS & CONCLUSION


Turbulent is the words that aptly describe the scenario in sports industry in last two last
financial years. By frequent price cuts in market and larger than live Marketing game plans,
competition reached its new highs and lows. It is no longer sufficient to just be competitive. A
company which has to survive has got to have competitive advantage. One needs to take
strategic initiative in the short run to achieve the desired “positioning” in future. One has to
foresee ‘tomorrow’.

Understanding competition today involves three levels:

❖ Competition for intellectual leadership for new ideas that create new advantages.

❖ Competition for translating these ideas into product/service faster than others.

❖ Competition for market share.

Following tips are helpful in combating competition:

❖ Do not nature and PARADIGMS because today “anything is possible”.

❖ Search for newer markets than expanding your customer base.

❖ Come out with state of the art, feature packed affordable and competitive advantageous
products.

❖ Set Benchmarks for growth.

❖ Improve up on distribution channels for viable coverage of the market.

❖ Wear out competition through trend setting, inimitable tactical moves based on our
infrastructure strengths.

❖ The strategic intent should be clear down the management.

❖ Work on your strengths i.e. Infrastructure, financial base, backward integration.

❖ POP and MERCHANDISING material should be made as per international market.

❖ CORPORATE TRAINING PROGRAMMEA for Development of manpower from


external faculty.

We have so far identified the various areas on which ADIDAS and other major sports companies
need to improve upon to achieve the desired level of competitiveness. These improvements

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would give ADIDAS and the other sports companies base to compete with the MNCs and help
the Indian companies to reduce the impact of MNCs on the Indian Market in the future. Indian
manufacturers will have to react quickly because any delay in reacting to the threat posed by the
MNCs would only give the MNCs time to establish themselves in the market. With their
expertise and financial capacity they would be nearly impossible to compete with once they get
a firm foot hold in the market.

THE FUTURE
But the battle has only started, and the foreign sports companies are here for the long term. They
can sustain losses for years to come in order to gain market share. What they are doing at
present, is building up distribution networks to cover every nook and corner of the country and,
setting up manufacturing facilities.

Only those Indian manufactures which have a strong focus on manufacturing and technological
upgradation will survive in the long run, although with a much smaller market share than they
have at present. Small companies will be side lined totally and will exit from the sports market
altogether.

ADIDAS in INDIA has always been driven by its Value – for-money strategy. The company
needs to identify critical success factory and work assiduously towards achieving it.

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ANNEXURE
QUESTIONNAIRE

Dear Sir/ma’am

This is a questionnaire aimed at providing information and understanding the marketing


strategies of Adidas. Please provide required information and oblige me.

Name: ---------------------------------- Age: -------- ---------------------


Sex: ---------------------------- Contact details-----------------

1. Which of the following in your opinion potrays itself as the best before consumers?

a) Adidas
b) Nike
c) Reebok
d) Others
2. According to you, which of the following brand is best in sports wear?

a) Nike
b) Puma
c) Adidas
d) Reebok
e) Portland
f) Fila
3. Do you think Adidas provides its customers value for money ?

a) Yes

b) No

4. What factor do you keep in mind while shopping from Adidas?

a) Advertisement,
b) Price
c) Design
d) Quality
e) Comfort

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5. If you have to shop for sports wear apart from Adidas which of the following it will be?

a) Nike

b) Reebok

c) Fila

d) New balance

e) Puma

6. Who among these do you feel is the perfect choice for the brand
ambassador of Adidas?

a) Lionel messi

b) Karim Benzema

c) Achraf hakimi

d) Manika batra

e) Pedri

7. Does the brand ambassador of Adidas effect your decision to opt for it?

a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree
8. Are you aware about the online shopping facility provided by Adidas?
a) Yes
b) No
9. Which of the following induces you the most to opt for Adidas?
a) Discount offers
b) Sponsorships for events
c) Advertisements
d) Online shopping @ ShopAdidas
e) Brand

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Marketing Strategies Of Adidas

10. According to you, in which category should Adidas venture into?

a) Formal wear

b) Informal

c) Party wear

11. Which of the following products do you purchase most often from Adidas?

a. Shoe

b. Caps

c. T-shirts

d. Pullovers

e. Tracksuits

12. Do you think Adidas is able to promote itself in a better way as compared to
its competitors?

a) Strongly agree

b) Agree

c) Neither agree nor disagree

d) Disagree

e) Strongly disagree

“Thank you for your time and for sharing your views”

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BIBLIOGRAPHY
Web Sites

www.Adidas.com

www.indiainfoline.com

www.webcrawler.com

www.google.com

www.indiatimes.com

Magazines

A&M

Business India

India Today

Business Today

Newspapers

The Times of India

The Hindustan Times

The Economic Times

Books:

 PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM


EDITION

 V.S RAMASWAMY AND S. NAMAKUMARI MARKETING


MANAGEMENT, SECOND EDITION.

 WILLIAM STANTON.J, MICHALL J.ETJEC, BRUCE J.WALKER


FUNDAMENTAL OF MANAGEMENT.

 RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.

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