PRESENTATION ON INTERNATIONAL MARKETING STRATEGIES

Adidas In India
‡ 1989 - Entered India , license agreement with Bata ‡ 1996 - Joint venture with magnum international trading Co. LTD.

‡ 1998 - Sachin tendulkar is brand ambassador of India

‡ 1999 - Introduced the cheapest range of shoes they had ever sold ‡ 2001 - First televised advertisement for India- paes and sachin

‡ 2004 - Advantage adidas campaign in. 30% growth milestone

‡ 2005 - Andreas Gellner is the new MD, India

Marketing strategy
€ People

purchase products or services for three basic reasons: To satisfy basic needs. To solve problems. To make themselves feel good.

Mission Statement
The adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle. ‡We are consumer focused » and therefore we continuously improve the quality, look, feel and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. ‡We are innovation and design leaders » who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. ‡We are a global organization » that is socially and environmentally responsible, creative and financially rewarding for our employees and shareholders.

‡We are committed » to continuously strengthening our brands and products to improve our competitive position.

‡We are dedicated » to consistently delivering outstanding financial results.

Market Segments
Geographic segmentation Density: Urban and semi-urban cities

Demographic segmentation

Age: 15 to 35 Income level: >Rs. 15,000 Social class: Upper middle, lower upper and upper class Gender: Male and female

Marketing Mix
Product Mix ‡Running Shoes, spikes, socks ‡Football Studded boots, stockings, team-its, warm up suites ‡Basketball Shoes, jerseys n shorts, team kits ‡Golf- Taylormade Hats, gloves, bags, vintage clubs (golf sticks), golf balls, putters ‡Casual Footwear and clothing Apparels and accessories

‡Tennis ‡Cricket ‡Lacrosse ‡Rugby ‡Gymnastics ‡Skateboarding

Price Mix
It targets principal consumption centers, namely metros and build significant standalone exclusive store presence in significant locations. The strategy would be to play to our strengths, i.e. in apparel and mid to high priced footwear.

PRICING (GLOBAL): Price Range: Men Shoes: $55 to $350. Sandals: $15 to $40. Woman Shoes: $45 to $240. Sandals: $20 to $ 35.

PLACE:
Major retail outlets in India: Agra, Ahmadabad, Aizwal, Ajmer, Allahabad, Alwar, ambala, Amritsar,Aurangabad, Azamgarh, Baddi, Bangalore, Bhatindia, Bareilly, Bhopal,Bhubaneshwar, Bikaner, Bilaspur, Chandigarh, Chennai, Coimbatore, Cuttack,Darjeeling, Dehradun, Dhanbad, Dimapur, Firidabad, Ganganagar, Gantok,Ghaziabad,Gorakhpur,Gurgaon, Guwahati,Haridwar, Hissar, Hydrabad, Indore,Imphal, Itanagar, Jabalpur, Jaipur, Jallandhar, Jammu, Jodhpur, Jorhat, Kanpur,Kolkata, Kota, Kullul, Lukhnow, Ludhiana, Manglore, Meerut, Monga, Mohali,Mumbai, Moradabad, Mussoorie, Mysore, Nagpur, Nashik, Newdelhi, Noida,Palampur, Panchkula, Panipat, Panjim, Pathankot, Patiala, Patna, Pondicherry,Pune, Rajkot, Raipur, Ranchi, Rothak, Rourkela, Secunderabad, Shillong, Shimla,Siliguri, Surat, Udaipur, Varanashi, Vijayawada, Vizag

PROMOTION:
ADIDAS promotes its products through Television advertisement, mobile marketing, through various sponsorship in sports events, websites, tie up with various football clubs and international teams. Brand ambassador of ADIDAS India is Sachin Tendulkar and Sania Mirza. PROMOTION PARTNERSHIPS: ‡Adidas Official Outfitter of National Basketball Association BostonMarathon, Bosto/ Massachusetts, USA April 20, 2009. ‡Adidas Official Apparel and Footwear Outfitter Flora London Marathon, London, UK April 26, 2009 ‡Adidas Official Sponsor French Open, Paris, France May 24 ± June 7, 2009 ‡ Adidas Official Partner of Roland Garros UEFA Champions League Final, Rome, Italy May 27, 2009 ‡Adidas Official Ball Supplier of Australia and England cricket teams FIFA Confederations Cup, South Africa June 14 ± 28, 2009

TARGET MARKETS
The target market of Adidas is the urban youth with the brand proposition µcompetition to lifestyle¶. The principle consumption centre's namely the metros are also a potential target market!

MARKET NEEDS
‡Comfort ‡Durability ‡Style ‡Price ‡Brand

SITUATION ANALYSIS THE CHALLENGE COMPETITIVE SCOPES

THE INDUSTRY ADIDAS is in the sportswear, apparel and sports accessories industry. The main competitors of ADIDAS in the industry are NIKE, and PUMA since it acquired REEBOK in January, 2006.

NIKE Nike is currently the world leader in Sports goods industry with a brand value of $12,672 million. The company concentrates on style and technology with a high price range of the products.

PUMA AG A German based company best known for its football shoes and athletic shoes. The competition from Puma has become stronger after the 2008 Olympics in which the Jamaican sprinter Usain Bolt broke records and won 6 gold medals. Bolt was wearing Puma shoes!

COMPETENCE: The firm has a stiff competition in the Indian market. Currently, Nike is the leading player in the industry. ‡Multi-Brand Approach There is a natural limit a brand can achieve given the diverse tastes and expectations of a highly fragmented consumer market. Thus, a multi-brand approach will provide the firm with a major competitive advantage and significant additional commercial opportunities compared to a single brand strategy. It can leverage the power of its brands in a more precise and meaningful way, utilizing the combined strengths of each to compete for a higher percentage of the market, covering a greater number of consumer needs, price points and demographics.

‡Broader distribution Close cooperation with retailers can significantly improve the in-store experience for the product. Establishing shop-in-shop formats (e.g. with JJB and Dick¶s Sporting Goods) or retail partnerships (e.g. with INTERSPORT) are examples where the company is leading the industry. Such co operations can be particularly effective in markets that have become dominated by price and lack of differentiation. ‡Cost leadership The acquisition of Reebok has created significant opportunities to reduce and optimize costs, through scale benefits, back office consolidation and combined capital expenditure planning.

PEST Analysis Of Adidas
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Political factors include areas such as tax policy, employment laws, human health and environmental regulations, trade restrictions and tariffs and political stability. In terms of world politics, global trade is being liberalized by governments; meaning that products can be moved more freely as follows: India is not a sporting Country and hence lesser demand for sports shoes. Home market lobbying/pressure groups. Very few sporting events apart from cricket fixtures to attract customers.

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Economic factors are about economic growth, interest rates, exchange rates and inflation rate as follows:

‡ The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07 ‡ Growing middle class and growing buyer power leading customers to look for branded shoes. ‡ Seasonality issues ± sports is more of a rage in summers ‡ Lack of targeting of market segments for kids and women

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Social factors often look at the cultural aspects lifestyle trends ± upward shift Demographics Consumer attitudes and opinions changing favourably towards branded shoes media views consumer buying patterns fashion and role models buying access and trends advertising and publicity

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Technological factors include: Competing technology development India offers benefits like low cost of production, abundant raw material, and a huge consumption market Research funding in design and requirements Manufacturing maturity and capacity Information and communications Consumer buying mechanisms/technology Innovation potential Technology access, licensing, patents

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