PROJECT ON

ADIDAS

SUBJECT: Global Entrepreneurship

Submitted By: Submitted To:

Kuldeep Devadi Assistant Professor
A30106421038 Neha Makkar
BBA-4{A}
 DESCRIPTION

• Adidas ; stylized as adidas since 1949) is a German multinational

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

• The company was founded by Adolf "Adi" Dassler who made sports shoes in
his mother's scullery or laundry room in Herzogenaurach, Germany after his
return from World War I. In July 1924, his older brother Rudolf joined the
business, which became "Dassler Brothers Shoe Factory" (Gebrüder Dassler
Schuhfabrik). The electricity supply in Herzogenaurach was unreliable, so the
brothers sometimes had to use pedal power from a stationary bicycle to run
their equipment.
 PROBLEM IDENTIFICATIONS

The major challenges facing Adidas in its expansion in the emerging economies like china and
India is the existence of competitors. Nike being the most triumph competitor, there is the
existence of other competitors like puma, which steer in the same market.

Adidas teamed up with Parley to help spread awareness and

transform ocean plastic pollution into high-performance
sportswear, spinning the problem into a solution.

By far the biggest concern over the next six months for
experts in the footwear industry is the cost of merchandise or
raw materials, according to a survey conducted in April 2022.
Worries over insufficient demand, both in home and overseas
markets, also troubled the experts.

Adidas outsources the production of its products to Far

Eastern manufacturers. While this strategy does allow the
brand to cut costs, it's one of their major weaknesses. By
outsourcing manufacturing processes to third-party suppliers
working overseas, Adidas loses some control over how its
products are made.
 BUSINESS OPPORTUNITIES

The primary opportunity for Adidas may well be the growing

sportswear industry. Health and fitness are hotter than ever,
and there's no sign they'll be slowing down any time soon.
This means there will be a consistent increase in the number
of people practicing sport and thus needing appropriate
sportswear.

The brand has built several sources of competitive advantage

which include technology, marketing, supply chain as well as
product design and quality. Apart from them, it is investing in
sustainability and the creation of sustainable products to
increase the popularity of its products and brand.

The unique selling point of Adidas is developing such light-

weighted and comfortable sports apparel that the other
competitors could not manufacture. Based on this, Adidas
customers put deep trust and value to its products and
services, hence the brand expands on a wider scale.

Adidas not only offers high quality footwear to its customers

but also, that is comfortable and durable. It is known because
they create products keeping their users in mind. They even
have segregated their products according to the needs of the
customers and sport the users follow in mind.
 VALUE PROPOSITION

Adidas Retail puts customers first by offering the products

and services they want, when they want them and at
competitive prices. Through over 3,000 retail sites around the
world, we provide high quality fuels, lubricants, services and
other products in a clean, safe and secure environment.

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 Gebruder Dassler Schuh Fabrik. The three stripes
are Adidas’ identity mark, having been used on the
company’s clothing and shoe designs as a marketing aid.

The global supply chain of Adidas extends to various tiers

from manufacturing partners to raw materials such as cotton,
leather, and natural rubber and the use of technology.
As part of the new strategy, Adidas aims for its direct-to-
consumer business to account for half of its total sales by 2025
and contribute more than 80 percent to the company’s
targeted revenue growth until then. By 2025, Adidas aims to
triple its members to around 500 million, all while doubling its
e-commerce sales to around $10 billion (about $31 per person
in the US). In addition, Adidas’ own retail stores will be
digitized with fully-fledged omni-channel capabilities.
 BUSINESS MODEL

• The collaboration of Adidas with various athletes and

significant-tech companies has allowed it to enhance
innovation with branding and marketing. This has led to
the development of a more vital relationship with the
customers, ensuring customer loyalty. It also collaborates
with celebrities which includes music and fashion icons.
Thus, the strategy is to build must-have designs that reach
out to more than just sports fanatics.

• Adidas' business model is highly focused on creating

innovative products designed to meet consumer needs.
Rather than investing in product endorsements, the
company attempts to demonstrate its value by creating a
high-performance product line based on the specific needs
of athletes and consumers.

•Adidas' business model is highly focused on creating

innovative products designed to meet consumer needs. Rather
than investing in product endorsements, the company attempts
to demonstrate its value by creating a high-performance
product line based on the specific needs of athletes and
consumers.
SEGMENTATION: Adidas separates its market into multiple
categories depending on different consumers' choices and likings.
Market segmentation can be separated into different segments of
consumers depending on demographic segmentation, geographic
segmentation, psychographic segmentation, or behavioral
segmentation criteria. They may require a different product altogether
or have a marketing mix of perks or benefit from the items they buy.
It also allows for a more accurate determination of market
opportunities, as well as the examination of market gaps.

TARGETING: Adidas aims to appeal to current categories of

consumers that enjoy and are passionate about health and fitness
sports, as well as those who have been loyal to the company from its
inception. They are aimed at athletes or young individuals who enjoy
sports between the ages of 20 and 30. Adidas is focusing on 13-18-year-
old athletes because they feel they are the future generation of
athletes who will develop the brand and are the most important
customer segment. Nevertheless, the company is also very famous for
those aged 40 to 65.

POSITIONING: Positioning is a wonderful marketing approach that

allows a company to highlight its benefits and establish a picture of
the firm's services in the minds of customers. Adidas is very concerned
about its clients, which is why diversity, honesty, performance, and
Enthusiasm is among the company's key principles. Adidas presents
itself as a major sportswear brand and attempts to build its reputation
by creating and selling qualified items, providing swift service, and
having a lengthy history.