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A special thanks to Mr. Rakesh Manocha (Manager Marketing) for making my project at Adidas a memorable learning experience. For his learned guidance, constant inspiration, keen interest and immense encouragement throughout the period of market research. His constant supports as well as the confidence, which he shown in me helped me, hide over the difficulties. No work is complete without credits being given to the person who helped in achieving the desired task.I feel privileged to thank my teacher MISS SARGAM MAKKAR and all those who have directly or indirectly contributed to the completion of the project.
This is to certify that I , RATNADEEP SINGH , pursuing BBA from JIMS ,Vasant Kunj,New Delhi(Affiliated to Guru Gobind Singh Indraprastha University) have prepared this project by myself with the help of various people.
Most importantly, I would like to thank my teacher guide MS. SARGAM MAKKAR. I am grateful to her for her help and guidance throughout.
I have made a research on marketing of Adidas by questionnaire method. The main aim of my research is to find out that how Adidas hold to the market and what are the areas in which Adidas can improve upon, in the questioner itself I have emphasis on the marketing of Adidas and also about the current position of Adidas in market. According to the response of my questionnaire, I have found that Adidas and Nike are main competitors but Nike is more preferred brand then Adidas. This is mainly for two reasons first Nike has more variety and good looks then Adidas and second there outlets are more then Adidas so the company must work upon these two thing to be the world number one.
SWOT ANAYSIS 4.TABLE OF CONTENTS 1. COMPANY PROFILE 3.BIBLIOGRAPHY . RECOMMENDATION 10. FINDINGS & ANALYSIS 7. RESERCH METHODOLOGY 6. OBJECTIVES 5. CONCLUSIONS 9.QUESTIONNAIRE 11. INTRODUCTION 2. LIMITATION 8.
a US-based sports marketing company founded by former Nike executives Rob Strasser and Peter Moore. It offered .INTRODUCTION My project topic is "Adidas" which is a shoe company and I am analyzing its Marketing Strategy. development.. 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. 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. I have chosen this particular topic mainly for two reasons. Secondly adidas grows as one of the best leading brand in the shoes and other accessories which is admired by all types of generation. since my childhood days I had great interest in the shoes and I like to buy new shoes as and when it comes in the market. In February of 1993. Adidas America has continued to build on this history. Meeting athlete needs is what makes Adidas the best. Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. Firstly. The Shoe Company that I most admire is Adidas. had been working in conjunction with Adidas USA on the design. Hence I have decided to do my project report on this company. and marketing of the Adidas Equipment line. Focusing more on function and less on fashion. Sports Inc. The history of Adidas is one of consistently meeting the evolving needs of the athlete. Adidas acquired Sports Inc.
. After the successful creation and launch of Adidas America I have made a research on marketing of Adidas by questionnaire method. I have found that Adidas and Nike are main competitors but Nike is more preferred brand then Adidas.moisture management. weather protection. This is mainly for two reasons first Nike has more variety and good looks then Adidas and second there outlets are more then Adidas so the company must work upon these two thing to be the world number one. and safety. thermal insulation. The main aim of my research is to find out that how Adidas hold to the market and what are the areas in which Adidas can improve upon. helping the athlete to perform more efficiently. in the questioner itself I have emphasis on the marketing of Adidas and also about the current position of Adidas in market. According to the response of my questionnaire. ease of movement.
Adidas strives to provide athletes with shoes that can make a noticeable difference in their performance. Adidas America has continued to build on this history. made for training. a US-based sports marketing company founded by former Nike executives Rob Strasser and Peter Moore. 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. This line helped rejuvenate and reposition the Adidas . In 1920. the Dassler brothers separated to form their own two separate companies. had been working in conjunction with Adidas USA on the design.. Focusing more on function and less on fashion. In February of 1993. development. Sports Inc. Dassler manufactured his first sports shoe. Adidas acquired Sports Inc. Rudolph. Adolf “Adi” Dassler brought to life those three little stripes. after realizing the need for performance athletic shoes. Dassler formed Adidas and his brother formed Puma. and marketing of the Adidas Equipment line. The history of Adidas is one of consistently meeting the evolving needs of the athlete. Meeting athlete needs is what makes Adidas the best. In1948. With his brother. both headquarters in Herzogenaurach.COMPANY PROFILE In the small German village of Herzogenaurach the world began its love affair with Adidas (Ryno’s Company History).
It offered moisture management. Adidas .Salomon is a global leader in the sporting goods industry and offers the broadest portfolio of products. with total net sales of 6. The company's share of the world market for sporting goods is estimated at around 15%. thermal insulation. apparel and accessories. Today. delivering state-of-the-art sports footwear.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. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance. helping the athlete to perform more efficiently.1 billion and net income of 208 million. Adidas-Salomon products are available in virtually every country of the world. After the successful creation and launch of Adidas America General Information For over 83 years Adidas has been part of the world of sports on every level. Activities of the company and its approximately 100 subsidiaries are directed from Adidas-Salomon AG's . ease of movement. and safety. weather protection.
France. The Adidas brand is one of the most popular brands as determined by a within brand survey of sportswear brands in the year 2004. Adidas-Salomon AG has approximately 13. Europe's biggest sporting goods manufacturer said Wednesday. Soccer and Tennis as well as the Research and Development Center. Also located in Herzogenaurach are the strategic business units for Running. The strategic business unit Golf is based in California. Additional key corporate units are based in Portland.headquarters in Herzogenaurach. The company also operates design studios and development departments at other locations around the world. and home to the strategic business units Basketball. Germany. Adventure and Alternative Sports. Turnover and Brand Image The turnover of Adidas company has grown to 16 Million US dollar in 2004-05. . the domicile of Adidas America Inc. Future Plans Football's World Cup and the takeover of US rival Reebok contributed to a surge inprofitsand turnover for adidas in 2006.400 employees worldwide. corresponding to the related business activity. Oregon in the USA. Almost 53% of the turnover is from sale of apparel and accessories with the rest from footwear. The business unit Winter Sports is in Annecy.
08 billion euros. . 'We strengthened our brand portfolio by acquiring Reebok and exceeded the 10 billion euro sales mark for the first time in the group's history. IN 2008.' he said.Operating profit rose 26 per cent to 483 million euros (632 milliondollars) while group revenues climbed 52 per cent to 10. the German based company said. Adidas AG chairman and chief executive office Herbert Hainer called 2007 'a truly exciting year' for the adidas Group. adidas faced a slowdown in growth because of an absence of major sporting events.
25 billion euros from 1. ADIDAS Managing Director . Interest payments result from the 3. following a 4 million euros loss for the same period of 2007.52 billion in 2007.' The brand with the three stripes said it also profited from a strong performance by the TaylorMade-adidas Golf segment. Adidas reported a final quarter surplus of 13 million euros.1 billion takeover of Reebok last year as well as negative effects from lower US operating margins pushed the group's operating margin down 1. Turnover for the quarter rose 2.Hainer said adidas' performance at the 2006 World Cup held on home soil 'was a stand-out in leveraging our brand strength. the company said.7 per cent of sales.9 per cent to 8.
• 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 . Market research is a method of collecting data which will make you (as a business) more aware of how the people. will react to your products or services. you hope to sell to. Market research will answer questions like: • Whether your products or services are needed • Who might want to buy your products • What age. income occupation etc. are the people I want to sell to. sex.MARKETING STRATEGIES : AN OVERVIEW OF ADIDAS Some of the theory I have used in my project are as follows Theory: what is market research and why it is important.
questionnaire and mail survey. I have made use of two type of survey methods. I have asked some question about the company my mail and also by direct contacts. The Question I have asked are given in “questionnaire part” below. Theory: marketing mix The Marketing Mix (The 4 P's of Marketing) Marketing decisions generally fall into the following four controllable categories: • Product • Price • Place (distribution) . Mail Survey and Telephone interview.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. and there are many methods of gathering data this way: Direct Interview. Questionnaires and personal interviews are one of the most common ways in which you can conduct market research. Depending on the type of data you hope to collect will have a impact on what you choose to use.
• Promotion The term "marketing mix" became popularized after Neil H. display. servicing. advertising. The Concept of the Marketing Mix. E. personal selling. pricing. and fact finding and analysis. physical handling. promotions. branding. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". depicted below: . distribution channels. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing. packaging. Borden published his 1964 article. The ingredients in Borden's marketing mix included product planning.
The Marketing Mix These four P's are the parameters that the marketing manager can control. physical products as well as services. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response. penetration. etc.) • Cash and early payment discounts • Price flexibility • Price discrimination . Product Decisions The term "product" refers to tangible. Here are some examples of the product decisions to be made: • Brand name • Styling • Quality Price Decisions Some examples of pricing decisions to be made include: • Pricing strategy (skim. subject to the internal and external constraints of the marketing environment.
pull.) • Advertising • Personal selling & sales force • Sales promotions . selective. Marketing communication decisions include: • Promotional strategy (push. or exclusive distribution) • Warehousing • Distribution centers • Transportation Promotion Decisions In the context of the marketing mix. Some examples of distribution decisions include: • Distribution channels • Market coverage (inclusive. that is. the communication of information about the product with the goal of generating a positive customer response. etc.Distribution (Place) Decisions Distribution is about getting the products to the customer. promotion represents the various aspects of marketing communication.
4 million with the equity structure remaining the same. on October 1. apparel and accessories in New Delhi on November 1. weakness. Adidas’ Range of Products in India A month after announcing the joint venture.4 Million with the equity structure changing to 91. – was incorporated with an initial investment of US $ 205 million with Adidas India Ltd. Currently. the total investment stands at US $ 11.4% by Adidas and 8. holding 80% of the equity and Magnum holding the balance 20%. launched its range of sports footwear. The Company Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called Adidas India Ltd. This theory is very important for the company because this theory tell the weakness and the strong points of the company and if company knows it weakness and it strong points then company becomes easy operative and also the profits as well as the market share of the company get increased. Adidas India Ltd. 1996.Theory: SWOT analysis This theory tells about the company strength. Subsequently. Adidas products were also launched in . and announced its joint venture with Magnum International Trading Company Ltd.6% by magnum. This investment was raised to US $ 6. 1996. opportunity and Threats. The new joint venture – Adidas India Ltd.
indoor. Currently. tennis and training for Men. golf. tennis. Torsion system and adi wear. soccer and workout. cricket. basketball cricket. Bangalore. These include apparel for athletics. The women’s . soccer. a wide range of sports wear for both men and women. Adidas products are available in 30 cities in India. running. basketball. swimming. The sports footwear available in India includes a wide range of core categories such as adventure. Chennai. running. Hyderabad and Calcutta. Adidas has introduced in India. training.Mumbai. 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. golf.
At present. Accessories include bag packs. tennis. feet and above). medium and large kit bags.range includes apparel for athletics. training and workout. golf. running. multibrand stores and distributors. socks. campus bags. caps. swimming. Adidas Markets its products in India through a combination of mega exclusive stores (area of 1000 sq. exclusive stores. wrist and headbands. Adidas is available in 80 exclusive outlets out of which 34 are company – owned with 8 new Company – owned stores planned for 2009 and in 900 multi-brand outlets in India. .
eye wear to lanyards. 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. . An Adidas product is the result of the intense thought and creative energy of many different people. all things sport are available at the Adidas store. you can now purchase an extensive range of Adidas footwear and apparel online.MARKETING-MIX ( FOUR P’S): ADIDAS THE PRODUCT: Whatever your athletic preference. From running shoes to baseball cleats. Technology and functional design. These prototypes are then presented to the retail market by the marketing department. collegiate licensed jackets to good old fashioned cotton T-shirts. The following is a general outline of how we create our performance-based products. A development team makes the actual prototypes.
design and development – meet and discuss how to improve the prototype. The development department then works with the design department to create an actual prototype from the selected sketches. narrowing the selection to those they anticipate will most successfully meet athletes’ needs. 4. the design teams sketch possible prototypes. Three separate groups – marketing. The people from design and marketing consider the prototype sketches together. 6. 2. 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. 3. 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. . Based upon this concept from the marketing department.1. 5.
7. Adidas wants to bring inline skates into India. As A BRAND At Adidas –you have got to be sporty. Preview samples are presented to key accounts and consumer focus groups for feedback. What that kind of stuff got to do with Indian market? Yes. 9. Based upon this information. 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. it won’t really be a hot seller. Samples are distributed to Adidas sales representatives for presentation to retailers. final changes are made. . but it will contribute a lot to Adidas brand image. At Adidas the brand awarding is been taken rather seriously at its headquarters. That’s the Adidas way of doing it – image is a critical part of branding strategy the world over. A. 8. The finished product is delivered to retailers.
Kannan (Director – Marketing) “Our Secret is our commitment to the sports process. strengthening & toning. the trend is towards being sporty. Words of G. Leander Paes & Mahesh Bhupathi endorsing the brand in India. Adidas will take on arch Nike with almost the same positioning. The three stripes. This is reflected in the clothes that people wear today. . Adidas in fact did go through a limited fashion phase. Its working with promising athletes to give them a taste of its products. Good news for Adidas is that even in the casual market. Adidas steps out of crease with a clear sports positioning. Going to Gym is fast graduating from a mere fad to serious body building. apart from endorsing the performance element in the brand. B. 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. We develop shoes that take into account the needs of a particular sports & the role of this brand is driven by this factor”. Adidas nowadays is capturing an attitude that is sports related. They had the image.Adidas already has heavy weight sportsmen such as Sachin Tendulkar.
VALUE OF IT’S PRODUCTS FOR ADIDAS Our goal is to create a product that is honest – it must perform. product is not just a assortment of few items. For Adidas the product plays an eminent role in the enhancement of their corporate as well as sports image: ADIDAS SAYS – “Nothing compromised. The rule is simple: form follows function. some metal sheet. For Adidas. C. is it selling a certain no. The most innovative Adidas products created specifically to help make you a better athlete. of nuts and bolts. 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.for instance is unique property which can be reinvented in various forms as trends changes. is it selling so much wear and tear on a delivery truck and so much operator fatigue? As per . If a company sell an automobile. an engine and four wheels? If a company sell a delivery service.
the package. use or profit the customer wants. perhaps the brand name which fulfills some psychological needs a warranty and confidence that service will be available after the purchase. instruction on use. installation.Adidas the answer to these question is instead what we are really selling is the satisfaction. They just want their package. That means for them only the final service matters. They don’t care how they were made. Adidas says that all the customer wants is. Further they want that when they order something. 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. as per Adidas place and physical distribution of the product is something on . that whatever product they purchase should fulfill all their needs and preferences. the don’t really care how much out of the way the driver had to go or where he/she has been. PLACE AND PHYSICAL DISTRIBUTION: A: Place Adidas is very much concerned about its second “p”.
Process used – assorting progress Entire range. Adidas has appointed marketing specialists who are taking care of the supply of the product and their distribution channels and process. . Marketing specialists put together an assortment to satisfy some target market. 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.which almost every company spends a handsome amount of money. B: Physical distribution As per Adidas nearly half of the costs of marketing is spend upon the physical distribution. His is usually done by those who are close to the retailers only. which is available is put together to give a target market what it wants. Hence Adidas takes a good care of its place and physical distribution process.
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. These marketing . The flexibility of trucks makes them really good for moving small loads for short distances. It is the process which is responsible for the growth or decline in the sale of the product. TRUCKS In Adidas. They can travel on almost any road. Adidas thinks that promotion is communicating information about the product between the seller and the buyer to change attitudes and behavior. except the export products. wherever the Adidas is located. According to Adidas they can give extremely fast service. Adidas believe that it just cannot be taken lightly. Also trucks causes less breakage in handling. To handle the company’s promotional activities Adidas has employed marketing managers.Note: Physical distribution can be varied endlessly in a marketing mix and in a channel system. It is a very important aspect of products life cycle. trucks are considered to be the best medium for transport.
Because a wrong message can lead to the end of their products life. But company takes a very important look about how the product works and this message is communicated to their consumers. . 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 encouragement of the customer to by their products.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 believes sales promotion tries to compliment the company’s selling efforts. Adidas thinks that only taking the product to the customers is not a task of the company.
They arrange contest. Adidas also spends nearly $2. .STEPS THAT ADIDAS TAKE TO PROMOTE SALES In the last years the Adidas has almost given sale to its products 6 to 7 times i. As per Adidas. ADVERTISING As per Adidas advertising can get results in a promotion blend. Adidas in India is spending almost $17 million on advertising. Continuously. from World War II to 1980 it went from $1 billion to $50 billion. So Adidas always tries to deliver the message which everyone can easily understand. They may interpret the same words differently. They even design the sales materials for the company’s own sales force to use during the sales calls. The amount spent in the Unites States for advertising is growing. people see same message in different ways.9 million on its advertising throughout the world. almost twice in a year Adidas goes for discount on sales. Good results are obtained at a cost of course. In order to motivate the employees of the company Adidas also prepares training material for the company’s own sales force.e.
Price. Adidas believes it has to deliver a functional at an affordable price. 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.Sania Mirza and Mahesh Bhupathi are already attached with their ad-campaigns. It’s a tough job – to maintain the integrity of the performance and still . one sports brand in India. Leander Paes . it wants to become the no. that’s the most critical factor in the Indian context. a choice brand for all brands.The heavy weight players like Sachin Tendulkar. PRICING: Adidas is clear.
Adidas however feels that its just the matter of time before India coverage’s the world on this front. Volumes are bound to go up. and it had limitations of what it could have put behind the brand. It is very difficult to operate on a lower price point and maintain integrity of product. Globally shoes start at $50.come out with a product a right price point. But in India as the perceived need is lower. Adidas will try and work out price points as people graduate with better understanding of quality and price perception. The original sector is just 20% of the total market and 80% of the volumes comes from sporty shoes. Adidas started at the time when India had no strength out in the sports products market in 1989 – 90. . But our market is producing products at a price that is relevant to the consumers. Adidas feels that as the volume go up. Its then licensing partner Bata. Adidas came out with speed 2000. To tackle this. a product priced at Rs.995 with the help of local and Hong Kong source people. you have to make the product more affordable. but its been barely 3 years since the sports market has taken off. So company took the next best step when the licensing agreement ended to take a bigger share in business.
Growth has been phenomenal for Adidas even given the base is small. while the industry growth as a best case estimate has been 20-25%.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. 2006 by over 50% and in 2007 Adidas is expecting more than 50% in terms of value in both shoes and apparel. . In 2005 Adidas grew by 25%. which are easy to afford and still maintain the integrity of their performance.
Remember the Sachin Tendulkar commercial? How everything is near-frozen. And it goes beyond that – Adidas becomes something that makes you better.MARKETING STRATEGY – ADIDAS OTHER STRATEGY Adidas. it is the urban landscape – with its omnipresent traffic jams. This way. in a towel) in distress. Not just as an athlete. the brand with three stripes. Anyone’s life. You don’t have to be the high-voltage performer to be a part of the Adidas family. and the shattering glass signifies release. a better human being. crowded streets and so forth. Only now. to do what he has to do and what he needs to do. Release of tension. To help a man (the owner. Adidas becomes a part of life. One of the advertisement: The spot featuring Boldon. seems to use the elements of high-tension in its ads. the setting is not the playground or the track or the court. but as a sports person. And Adidas helps him . shows him chasing a thief (who’d stolen a TV set when its owner was in the bath) through the dark streets. Adidas gives you a chance to but the boundaries – in every sphere. And he uses all the power that he can.
The merger makes Adidas/Salomon the second largest sport marketer in the world. In stark reality. than he would otherwise have been able to. The bather reads any man. Salomon is currently very strong in North America and Japan. . In short. and Adidas has the largest market share in Europe.4 billion purchase of Salomon. The deal put Adidas one step closer to competitor and world market leader Nike. and one step ahead of Reebok. aside from its winter sport equipment. Salomon. And Adidas goes beyond athletic performance – it becomes everyday life. and number one in Europe. goes the base. also owns golf club brand Taylor Made and cycle brand Mavic. a French manufacturer of skis and other sporting goods. Any man who wears Adidas. the other man could have done as well as Boldon. Adidas became Adidas-Salomon with its US $1. it has a deep meaning. One is wearing a pair of Adidas shoes while the other is barefoot. Adidas makes you better. This is perhaps shown in an oblique way when the spot ends at the feet of Boldon and the bather. Though humorously and light. MARKETING: ADIDAS In 1997.perform better.
Adidas is. But analysts say production is complicated and that the new sneakers will cost four or five times as much to make as a normal shoe. Adidas won't divulge its capital investment in Adidas 1. very active insuring sponsorships advertising deals with celebrities. David Beckham.for $100 I can get a very good running shoe. But let me tell you . the Predator Accelerator. Paul Palmer (swimmer). and I spend a lot of money on running shoes. after two years of sinking sales. Nike Air Jordans. they hope to . I bet the Adidas shoe works really well. My guess is. like Nike. Kobe Bryant (basketball). production will be less than 10. Some of the most famous are Martina Hingis (tennis). Patrick Kluivert and Zidane all wear Adidas boots. I run a lot. rather than sell a lot of these shoes. at $150 to $175 a pair. Adidas: Marketing a $250 Running Shoe No one knows if even serious runners are ready to pay $250 for a shoe — more than 50% above the next most expensive sneaker on the market.000 this year to drive exclusivity and hedge Stamminger's bet. Is this computerized Adidas more than twice as good? I doubt it. Peyton Manning. jan Ullrich (racing cyclist) and the New York yankees. only staged a comeback last year. Because of that.
the local four-ad print campaign tries to connect Adidas’ product attributes with . LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING STRATEGY IN INDIA Continuing its association with trump card Sachin.instill Adidas as the "king of running shoes" in the mind of the public and hope that the existence of the computerized shoe drives sales of other models.
Says the headline: ‘Sachin likes his bat heavy. “Instead of presenting just one dimensions : The first ad connects Sachin’s choice of a heavy bat with Adidas’ Falcon Dorf light weight shoes.Sachin’s magic. not his shoe. .
won the World Cup.299. promoting the three stripes. these are athletic sandals primarily meant for water-based adventure sports. The next ad will convey that Adidas covers various price points by promoting its existing Portland range priced at Rs 1. These were great times for our brand. .’ Adidas has reached an agreement with ISL Marketing G of Switzerland to become an official sponsor of the 2000 UEFA European Championships. we could not have wished for more.499 and 1. In summer.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.The second new shoe range to be introduced for the first time in India. 1998 was truly exceptional. mascot and trophy for the design of its own products. the Winter Olympics focused the attention of sports enthusiasts on Nagano. Finally. Sub-branded ‘Aksu’ and priced at Rs 2. Early in the year.. the Soccer World Cup in France attracted more spectators than any single sports event before. When the French team. Adidas will have access to the official emblems.
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. Says G Kanan. We’re an attitude that is relevant all the time. As a brand. when it was using ‘Earn your stripes’ as its tagline. The company dropped it during the late 80s after it found that it wasn’t connecting too well with its consumers. general manager. But the golden question is that will the campaign make Adidas run? The company expects the campaign to strengthen the image of the brand since research had indicated that neither of the three multinational sports shoe brands present in India had a clear image: most were perceived as . only in May-as well as through a four-ad print campaign developed locally by RK Swamy/BBDO.In 1998. marketing. Adidas: “We are the only brand with heritage in sports. The campaign also introduces a new brand line for Adidas: ‘Forever Sport’. The positioning is being communicated through its global campaignreleased worldwide in February 1999 but in India. we’re not an attitude that’s fashionable. the overall Adidas budget for promotion and sponsoring accounted for nearly 15% of turnover.
Adidas claims that it did not want to be caught up in the clutter of the World Cup promotions-and deliberately chose not to associated with the World Cup. Says Kanan: “Sachin has and will play a major role in pushing the brand.” Interestingly. It’s too large an event to make significance for us”. we have to present a global perspective too and hence the Forever Sport campaign. But after a certain duration. the campaign has been broken now to coincide with the peak season (AprilJune). “Star News is delivering good value while through Discovery. Instead. He is important. we can catch the elite customer”. as there are certain values a consumer needs to know about Adidas. the company is maintain a steady and dominant presence in the media during the Cup: strewn over select channels like Star. . Discovery. according to Kanan.diffused brands and personality-led. says Kanan. and ESPN are the Sachin ads promoting Adidas. “The World Cup is incidental. However.
As a company that takes pride in not joining the price brawl. Adidas does not intend to bring down the prices of its products. Kanan says.So it promotes the brand image and make it popular. he claims that Adidas has grown by over 250 per cent from last year.ADDIDAS IS ALSO SPONSERING THE INDIAN PREMIER LEAGUE.Many limited edition merchandises were launched during the IPL season to promote the brand. Although Kanan admits that the sports shoe and apparel market is at a nascent stage.It was one of the major sponsers of IPL season 1 & 2.which draw thousands and millions of fans towards it. Says .
the real breakthrough. has come through a combination of strategies: signing on Sachin.Kanan. Adidas however defends its range by pointing out that currently it has 50 items out of a total of 250. admits Kanan. . We are willing to wait for the market to evolve. “Apparel is driving the business. and supported them through sports icons who are looked up to. for women. The company is enlarging the scope of its business by concentrating on apparel. “We don’t look at driving down the market by lowering the price. expanding its reach (it opened 45 stores last year). a revamped range which covers a band of price points. Most consumers start experimenting with the brand through apparel”.” For Adidas. Leander and Bhupathi. Essentially perceived as a male brand. "“e built-in value pricing in our products. says Kanan . says Kanan. and support to the brand. We have realized that to have just one good guy endorsing your brand is more important than having several unknown faces”.
either through direct purchase or a retailer finder. and it’s these stories that sell the shoes to buyers. The newest version of Bryant’s footwear hits the street Nov. citing competitive pressure. he did say one of three visitors to the Bryant portion of the Adidas site demonstrated purchase intent by clicking through to the store or to the retail finder. particularly those endorsed by star athletes. Villota says it is Adidas America’s most ambitious integration of Web content and electronic marketing. While Adidas won’t comment on the new site’s features.Further. Says Kanan. The logic is clear: use Forever Sport to ensure sales forever… Never achieved profitability and collapsed under the weight of its own unrealized ambitions. coinciding with the start of the 2003-2004 NBA season. . Villota says that every style of footwear has a story. Adidas’s objective with the new line of footwear is to generate sales leads through its Web site. Adidas is planning to add 30 new stores this year. 1. “We’re looking at driving the market through exclusive stores”. While Villota wouldn’t disclose how much of Bryant’s Adidas footwear is sold online.
despite the EPS decline in 2004. Road Laver.Salomon Executive Board will propose paying a dividend of CC 0.92 per share to the Annual General Meeting of Shareholders on May 10. It represents the heritage and history of the brand. and Classic T-shirt. Management views 2004 as a year of consolidation and restructuring and has increased the pay out percentage to reward longterm shareholders. This decision to maintain a stable dividend level. A-15 warm-up. Examples of product featuring the Trefoil logo include the Stan Smith. underlines Management’s confidence in its ability to achieve its 2005 targets. .The Adidas . In 1996. THE ADIDAS LOGO The “Trefoil” was adopted as the corporate logo in 1972. the same amount as in the previous year. it was decided that the Trefoil would only be used on heritage products.
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. Since 1949.Equipment The Adidas Equipment line was launched in 1991. This line of footwear and apparel represents the most unique and functional of Adidas products. printed collateral and corporate signage. the Three-Stripes brand mark became the worldwide Adidas corporate logo. Equipment is the ultimate expression of what is uniquely possible by design when form follows function. This logo is used in all advertising. This logo represents performance and the future of the Adidas brand. In January 1996. .
. with total net sales of £182 million. apparel and accessories.ADIDAS: OVERVIEW/COMPANY’S FINANCIAL FACTS For over 83 years Adidas has been part of the world of sports on every level. The company’s share of the world market for sporting goods is estimated at around 19 percent. Our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance. 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 ever country of the world. Today. delivering state-of-the-art sports footwear.
the publicity and the advertisement is also very good and lastly company hold a heathly market share in the market. . The company has a good brand image in the market. The quality and the material uses in Adidas is very good. If these two weakness in the company can be eradicated then the company may earn high profit and better market status. 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.SWOT ANAYSIS Strengths: The main strength of Adidas is his Product Quality. Another major weakness in the company is that it is not catering to all the segments which I have already discuss above.
Opportunities: Adidas does have many products for the urban segment or poor people, but there are hardly any product 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 use 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.
OBJECTIVES OF THE STUDY
To study the marketing of Adidas and also about the current position of Adidas in market
♦ To find out Adidas and Nike are main competitors but Nike is more preferred brand then others. To find out that how Adidas hold to the market and what are the areas in which Adidas can improve.
STAGE ONE The project study started with collection of Secondary Data. The sources for the secondary data are as follows: Data Sources News Papers Magazines Internet Press articles on Adidas.
Stage Two I visited the Adidas India Ltd., which is located In GK-1 (new Delhi). I Also Met Some Of The Marketing Executives Who Helped Me Getting The Required Information. I Also Got Some Of The Information From The Other Resources Of The Corporate Office Like : Company Journals Company Catalogs
Questionnaire (Structured & Non Disguised) And Other Related Sources. Primary data: I have prepared a questionnaire for the general public asking about the marketing strategy of Adidas. in that particular questionnaire I have asked some question give in finding and analysis section: (the questioner is filled by 20 people). .
and Amer Group PLC which is based in Finland (2007 sales of 9. of the United States (2007 sales: $5. 35% and Sales of Hardware. Salomon. (B) Competitor Analysis Adidas-Salomon AG operates in the Men’s & boys’ clothing sector. Production and marketing of sports equipment.57billon] of which 24% was Racquet Sports). 20%. Sales of Apparel.87 billion of which 73% was Footwear). Sales of Footwear accounted for 45% of 2004 revenues. of the United States (2008 sales of $14 billion of which 69% was Footwear). . Note: not all of these companies have the same fiscal year: the most recent data for each company are being used. Taylor Made and Mavic. footwear and apparel under the brand names of Adidas.46 billion Finnish Markka [US$ 1. Reebok International Ltd.FINDINGS Company research report (A) Company Description Adidas-Salomon AG(ADIDAS). This analysis compares Adidas with three other sport shoe and apparel manufacturers: Nike Inc.
23 6.86 billion Euro for the year ending December of 2007. Adidas reported sales of 7.23 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008 .7% from the 2. when the company’s sales were 7.56 billion euro. Sales at Adidas have increased during each of the previous five years . sales at Adidas have increased compared with the same quarter in the previous year. This is an increase of 2. sales at Adidas totalled 2.(C) Sales Analysis During the first quarter of 2006. sales have been highest during the third quarter.0% and 32. During the previous 17 quarters. Sales at Adidas appear to have some seasonally: during each of the previous 5 years. since 2003.06 6. Recent Sales at Adidas (Figures in Billions of Euro) 7.86 8.94 7. D.49 billion Euro in sales at the company during the first quarter of 2005.53 6.23 billion Euro. This represents an increase as of in 2006.0% of the annual sales. which has accounted for between 28.
0% to 571. It is global in scope with the majority of its sales coming from Europe. followed by the United states. sales increased 36. and only 9% of revenues come from a growing Asian market. Adidas also experienced significant increases in sales in Asia-Pacific.In 2008. GROWTH Adidas is a constantly growing company. while a substantial 30% comes from the United States. and its ticker symbol is ADDDY. and the rest from Asia. . Adidas sales have grown significantly each year from 1994 to the present. while 37% come from the Americas. just behind Nike.00 million euro. Nearly 55% of Adidas revenues come from Europe. sales in Latin America were up at a rate that was much higher than the company as a whole: in this region. Adidas has stock traded on exchanges in Frankfurt and Pairs. The pie chart below shows exactly how the ownership of the company is spread out across the world. For anyone not familiar with the structure of this company (since it is not based out of the USA). with the smallest percent of Adidas’ sales coming from Asia. it is much like US based competitor Nike. Most of the ownership comes from Europe. Adidas is the leading producer of sporting goods in Europe and it is second in the overall world market.
The company has to become innovator not follower they must do something differently to come with the flying colors. This growth in sales comes from not only an improving world economy.Asia 5% Europe 40% US 30% UK 25% Adidas is a growing company as stated above. This shows that Adidas does not have a large market share in Asia as compare us and Europe and my questionnaire (given below) also suggest that company can improve a lot the certain areas are marketing distribution and competing with the competitors. but from Adidas’ marketing efforts to make it one of the most popular sporting goods brands. . sales have grown rather exponentially. although growth slowed in 1999. but how much and how fast? As you can see from the graph of net sales over the past five years.
4 said Reebok is good and 1 said others. others 5% reebok 20% adidas 45% adidas nike reebok others nike 30% . 6 had said Nike is more better then Adidas.DATA ANALYSIS 1.? * Out of 20 people 9 had said Adidas have a good marketing strategy and should continue like this only. Reebok etc. How do u rate the company marketing strategy as compare to the other competitors company like Nike.
Do u think that the company Adidas is giving its customer what they want in terms of quality and prices or value for money? * Out of 20 people 17 person are satisfy with the quality and the price happy of the product and other says that they are not satisfy.2. not happy not happy 15% happy not happy happy 85% .
20% 0% happy not happy 80% . Do u think that the advertisements and the brand ambassador of the company is good enough? * Out of 20 people 16 person said yes they like the advertisement very much and rest said no they don’t like them.3.
4. What things you keep in mind while purchasing shoes will it be quality. price or design? * Out of 20 people 17 person had said that the product must have good quality and good design and other said they purchase these shoe for status symbol only. advertisement. 14% 0% quality other factor 86% .
If u have to purchase shoe except Adidas which shoe it will be and why? * Out of 20 people 10 have said Nike. 20% nike 50% 30% reebok others .5. 6 said Reebok and 4 others. They have given different reason for that some said Nike and Adidas are have same range of products and there quality and prices is also same. which shows that the main competitor of Adidas is Nike. so different people have different opinion.
* Most of people said Adidas has a good marketing strategy but the company should launch more products or u can say more variety to their products. .6.What do u think that the company Adidas must do to improve its marketing statergy.
LIMITATIONS The research project has been completed with ease and comfortably. due to time constraints. No particular limitation or shortcoming was realized during the analysis. . Also. enough justice could not be done to the project.
In other words. And as a result. One of the primary challenges associated with globalization is balancing conflicting and competing objectives. it has faced such problems already and how they have dealt with them is with flexibility and calmness. Despite what could be higher costs. . Companies. As the world grows to become one. Adidas has come to depend on intangibles. including Adidas are no longer homogenous in the sense that their companies have grown worldwide. in an increasingly heterogeneous and global world.CONCLUSIONS ADIDAS in INDIA has always been driven by its Value-for-money strategy. Adidas has chosen to stick with their human right codes and Standards of Engagement rather than continue to be associated with subcontractors who treat works in inhumane ways. The company needs to identify critical success factory and work assiduously towards achieving it. many problems will arise that cannot be solved. it has had to deal with problems of heterogeneity vs. Adidas has had to make worldwide headquarters and produce information and products in several different languages. diversity in the workplace has appeared to emerge as an issue. As Adidas has grown worldwide. In the case of Adidas. homogeneity. Having to spread its workforce.
This is a result of good global business. that organizations cannot own. Who leads this knowledge and maintains diversity are the managers. Adidas is greatly affected by these external influences since indeed it is a global company. The long list of Adidas subsidiaries where it conducts business proves that Adidas is constantly adapting to cultural changes and must be extremely diverse. such as these. Great changes occur in this industry and as a result. intuition and inspiration are an asset that is a necessity in this industry and to remain a global company. knowledge is greatly valued. Because of this necessity. Adidas must be able to easily adapt to different cultures and must be culturally aware when conducting business. how successful companies are in the global world is increasingly derived from intangibles. Recently. . For some it is not common knowledge that Adidas is a German company. worldwide experience and diversity that an Adidas employee can bring to the table are valuable. yet they too are facing new changes. new ideas. Adidas has created a product that is global and with that diversity and knowledge greatly affect the company.The knowledge.
Double-digit growth from Salomon is projected as a result of the continued innovative strength and the increasing profile of their products. In addition to these positive top-line developments. and as a result net income is projected to increase by 15%. gross margins are expected to remain within a range of 41% to 43%. However. increased marketing and sales support will target ambitious golfers.RECOMMENDATION For 2009 the Adidas brand’s new divisional structure will be in place to start delivering positive results for the Group. operating expenses will decline as a percentage of sales. have continue in 2005. At Taylor Made-Adidas Golf. Adidas is currently ranked third in almost every category in the global athletic shoe industry. The integration of Mavic with Salomon. The main competitors of Adidas include Nike and Reebok . Top-line growth is expected in all other regions. which began in 2002. they rank second only to Nike in terms of sales. Adidas America will remain a challenge but nevertheless will deliver qualitative sales improvements in the second half of 2010. and solid growth in all the major golf markets is expected to continue. with further synergies between the two brands.
and the foreign sports companies are here for the long term. But the battle has only started. which has been struggling in the past couple of years. Gear and Fila (Fortune. They can sustain losses for years to come in order to gain market share.However. he also took a gamble on the side. Adidas commands only 5% of the athletic shoe business in the U. Aside from cutting the whole line of German senior management. Puma and Easy Spirit. Adidas began to focus on global marketing. who failed to match competitors’ low costs in subcontracting shoemaking to local companies.. compared with the 40% for the fearsome Nike. Louis-Dreyfus also fired management in Asia. setting up manufacturing facilities. While Louis-Dreyfus fought bring down costs. Adidas is also steadily regaining market share lost to other brands such as L. but the rejuvenated Adidas has climbed to within easy reach of Reebok.S. Adidas.A. is building up distribution networks to cover every nook and corner of the country and. 2000) Since acquiring their current president. Louis-Dreyfus. a wholly owned subsidiary. What they are doing at present. . has competed with a whole new strategy. other smaller competitors include Fila.
. ADIDAS in INDIA has always been driven by its Value – for-money strategy.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. The company needs to identify critical success factory and work assiduously towards achieving it. Small companies will be sidelined totally and will exit from the sports market altogether.
? Adidas Reebok Nike Others 2. Do you think that the advertisements and the brand ambassador of the company is good enough? Happy Not Happy 4. What things u keep in mind while purchasing shoes will it be quality. If u have to purchase shoe except Adidas which shoe it will be and why? Nike Others Reebok . advertisement.QUESTIONNAIRE 1. Do you think that the company Adidas is giving its customer what they want in terms of quality and prices or value for money? Happy Not Happy 3. price or design? Quality Other factor 5. Reebok etc. How do you rate the company marketing strategy as compare to the other competitors company like Nike.
6. What do u think that the company Adidas must do to improve its marketing strategy? ______________________________________________________ ____________________________________________________ .
com Magazines A&M Business India India Today Business Today Newspapers The Times of India The Hindustan Times The Economic Times From Company Company Journals Company Catalogs .indiainfoline. • • Web Sites www.BIBLIOGRAPHY Books: PHILIP KOTLER.com www. SECOND EDITION.google. BRUCE J.indiatimes.webcrawler. NAMAKUMARI MARKETING MANAGEMENT. EDITION 2005. MICHALL J.adidas.N COMPETITION IN INDIAN INDUSTRY.WALKER FUNDAMENTAL OF MANAGEMENT.J. RAVICHANDRAH.com www. MARKETING MANAGEMENT. • V.S RAMASWAMY AND S.com www.ETJEC.com www. WILLIAM STANTON.
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