Saurabh Report

7/30/2019 Saurabh Report

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ACKNOWLEDGEMENT

I would like to render my heartfelt thanks to ACCURATE INSTITUTE OFADVANCED

MANAGEMNET for providing me with this wonderful opportunity to work on this project;

which I am sure will add to my pool of knowledge.

Also, I would like to thank my faculty guide Miss.Preeti Rajanfor his unwavering help andsupport throughout this project.

Saurabhendr Km. Sharma

ROLL NO- 1168670148


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DDAATTAA AANNAALLYYSSIISS .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3388

SSWWOOTT AANNAALLYYSSIISS OOFF AADDIIDDAASS .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5500

RREECCOOMMMMEENNDDAATTIIOONNSS && CCOONNCCLLUUSSIIOONN .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5522

TTHHEE FFUUTTUURREE .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5533

AANNNNEEXXUURREE .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5544

QQUUEESSTTIIOONNNNAAIIRREE .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5544

BBIIBBLLIIOOGGRRAAPPHHYY .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5577


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INTRODUCTIONIn the small German village of Herzogenaurach the world began its love affair with Adidas

(Rynos 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

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


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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

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
http://images.google.co.in/imgres?imgurl=http://img.classiccloseouts.com/images_104/attributes_m/2BQ00900.jpg&imgrefurl=http://www.shoppingsuzy.com/Fashion/adidas-shoes.htm&h=345&w=250&sz=31&tbnid=de0y6StB_VQJ:&tbnh=116&tbnw=84&hl=en&start=3&prhttp://images.google.co.in/imgres?imgurl=http://www.theprosstuff.com/shoes/kb_adidas%20shoes%20big.JPG&imgrefurl=http://www.theprosstuff.com/shoes.htm&h=1473&w=1629&sz=743&tbnid=0B96h9lwVfIJ:&tbnh=135&tbnw=150&hl=en&start=5&prev=/images?qhttp://images.google.co.in/imgres?imgurl=http://img.classiccloseouts.com/images_104/attributes_m/2BQ00900.jpg&imgrefurl=http://www.shoppingsuzy.com/Fashion/adidas-shoes.htm&h=345&w=250&sz=31&tbnid=de0y6StB_VQJ:&tbnh=116&tbnw=84&hl=en&start=3&prhttp://images.google.co.in/imgres?imgurl=http://www.theprosstuff.com/shoes/kb_adidas%20shoes%20big.JPG&imgrefurl=http://www.theprosstuff.com/shoes.htm&h=1473&w=1629&sz=743&tbnid=0B96h9lwVfIJ:&tbnh=135&tbnw=150&hl=en&start=5&prev=/images?q


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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 ventureAdidas 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 womens range includes apparel for athletics, golf, running, swimming,

tennis, training and workout. Accessories include bag packs, campus bags, medium and large kit

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.


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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.

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


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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 SalomonThe Salomon Group (including Salomon, Mavic, Bonfire, Clich and

ArcTeryx) 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 REVIEWBrands

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, BoozAllen 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 offeringhow 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

institutions products, services and market landscape. There are three types of brand

architectures: a single brandone brand that covers the entire product range; tiered brands, witha 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 ofall 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. Nikes support of grassroots athletic events and Visas 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 sufficientadditional 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 tounderstand 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 adidass 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 adidaseven

in Germany, its own turf. Kids werent 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 majorglobal sporting eventslike 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. Adidass 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 yearan 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 dont

only score high marks in their game they also score high in their celebrity quotient. British

football star David Beckhams relationship with adidas has no doubt lent itself well to the

brands visibility in the UK. Recently dubbed "Captain of England," Beckham led his team to

victory in the 2000 FIFA World Cup. It doesnt hurt that hes married to a highly visible, ex -

Spice girl and is often seen in the tabloids sporting the adidas logo. With Europe as adidass

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. Shes a young, brilliant professional athlete

whose celebrity extends well beyond the world of tennis like Bryant and Beckham shes

captured the publics interest in mainstream newspapers, magazines and tabloids.

Reinvention was key, not only for the adidass 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 revolutionin 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 todays

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,[email protected]
http://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://www.businessweek.com/innovate/content/dec2009/id2009129mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.businessweek.com/innovate/content/dec2009/id2009129http://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://web.ebscohost.com/ehost/detail?vid=2&hid=7&sid=4bd48b26-579c-47ff-9917-45ffa288d1fc%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#toc


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MMAARRKKEETTIINNGG--MMIIXX ((FFOOUURRPPSS)):: AADDIIDDAASS

11.. PRODUCTWhatever your athletic preference, you can now purchase an extensive range of Adidas footwearand 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 basicconcept 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 teamssketch possible prototypes.

3. The people from design and marketing consider the prototype sketchestogether, narrowing the selection to those they anticipate will most successfully

meet athletes needs.
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4. The development department then works with the design department to createan actual prototype from the selected sketches.

5. Three separate groups marketing, design and development meet and discusshow to improve the prototype.

6. Samples are wear-tested to ensure the product meets Adidas standards forperformance and durabili ty and stands up to the demands of the sport for which

it was designed.

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

8. Samples are distributed to Adidas sales representatives for presentation toretailers.

9. The finished product is delivered to retailers.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 wont 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 ov er.
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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 posi tioning. Its working with promis ing 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 imagebecause 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 involvesdeveloping of the right productwhich 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 truck
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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 dont care how they were made. Further

they want that when they order something, the dont 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 customers 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 fulf il ls some psychological needs a warrant y

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, thats the most critical factor in the Indian context. Adidas believes it has to

deliver a functional at an affordable price. Its 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 af fordab le.

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 coverages 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 pr ice 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 qual ity and price percept ion. 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% interms 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 perAdidas 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 Indias 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 companys 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 thecompany. 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 companys 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. T hey arrange contest.

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

training material for the companys own sales force. They even design the sales

materials for the companys 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 everyonecan 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

bi ll ion. Adidas also spends nearly $2.9 mill ion on its advert is ing 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 chanceto 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 li fe . Anyones li fe . You dont have to be the high -voltage

performer to be a par t of the Adidas fami ly. And it goes beyond that Adidas

becomes something that makes you better . Not just as an athlete, but as a sports

person, a be tter hu man being.


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One of the advertisement: The spot featuring Boldon, shows him chasing a thief

(whod 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 athlet ic

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 Sachins magic. Instead of presenting just one

dimensions :

The first ad connects Sachins choice of a heavy bat with Adidas Falcon Dorf light weightshoes. Says the headline: Sachin likes his bat heavy, not his shoe. The secon d 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 companys 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, were not an attitude thats fashionable. Were 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 wasnt 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 alladvertising, 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. NIKE2. REEBOK3. FILA4. SPEEDO5. NEW BALANCE6. SKETCHERS7. PUMAPresent 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 designThis 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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GGLLOOBBAALL MMAARRKKEETT SSHHAARREESS OOFF VVAARRIIOOUUSS BBRRAANNDDSS IINN

AATTHHEELLEETTIICC FFOOOOTTWWEEAARR


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DDeeffiinnee tthhee MMaarrkkeett

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 payConducting 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 opportunities3. To understand marketing problems4. To help in the selection of right course of actions5. To know about customers acceptance of the product6. To understand the distribution network7. To forecast the probable volume of the future sales.8. To analyze the excepted market share9. To assess competitive slight policies


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RREESSEEAARRCCHH MMEETTHHOODDOOLLOOGGYY

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 usingquestionnaire.

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

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


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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 Mens & boys clothing sector. This analysis compares

Adidas with three other sport shoe and apparel manufacturers: Nike Inc. of the India (2004 salesof 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?

marketingstrategy

Frequency Percent Valid Percent

Cumulative

Percent

Valid Adidas 40 40.0 40.0 40.0

Nike 33 33.0 33.0 73.0

Reebok 18 18.0 18.0 91.0

Others 9 9.0 9.0 100.0

Total 100 100.0 100.0

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 brand is best in sports wear?

bestbrand


Cumulative

Percent

Valid nike 28 28.0 28.0 28.0

puma 12 12.0 12.0 40.0

Adidas 27 27.0 27.0 67.0

reebok 16 16.0 16.0 83.0

portland 9 9.0 9.0 92.0

fila 8 8.0 8.0 100.0

Total 100 100.0 100.0

Inference

When a comparison 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 ?

valueformoney


Cumulative

Percent

Valid yes 78 78.0 78.0 78.0

no 22 22.0 22.0 100.0

Total 100 100.0 100.0

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?

factors


Cumulative

Percent

Valid advertisement 7 7.0 7.0 7.0

price 27 27.0 27.0 34.0

design 7 7.0 7.0 41.0

quality 26 26.0 26.0 67.0

comfort 33 33.0 33.0 100.0

Total 100 100.0 100.0

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 of the

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

We found out that people prefer to shop from nike the most after Adidas followed by puma

which is the next best favorite of the people , brands like newbalance ,fila are not so attractive

among the customers

alternative


Cumulative

Percent

Valid nike 31 31.0 31.0 31.0

reebok 22 22.0 22.0 53.0

fila 10 10.0 10.0 63.0

new balance 9 9.0 9.0 72.0

puma 28 28.0 28.0 100.0

Total 100 100.0 100.0


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6. Who among these do you feel is the perfect choice for the brand

ambassador of Adidas ?

bestbrandambassador


Cumulative

Percent

Valid sachin tendulkar 36 36.0 36.0 36.0

rickey ponting 22 22.0 22.0 58.0

david beckham 20 20.0 20.0 78.0

sania mirza 13 13.0 13.0 91.0

Zindine Zidane 9 9.0 9.0 100.0

Total 100 100.0 100.0

Inference

Out of the various brand ambassadors of Adidas sachin tendulkar is the favorite among the

people followed ricky pointing and david beckham. Zinedine zidane the French 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 ?

brandambassador


Cumulative

Percent

Valid strongly agree 9 9.0 9.0 9.0

agree 39 39.0 39.0 48.0

neutral 21 21.0 21.0 69.0

disagree 28 28.0 28.0 97.0

strongly disagree 3 3.0 3.0 100.0

Total 100 100.0 100.0

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 companys brand ambassador


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

awarenessonlineshopping


Cumulative

Percent

Valid yes 28 28.0 28.0 28.0

no 72 72.0 72.0 100.0

Total 100 100.0 100.0

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 ?

Salespromotion


Cumulative

Percent

Valid discount offers 23 23.0 23.0 23.0

sponsorship 12 12.0 12.0 35.0

advertisements 22 22.0 22.0 57.0

online shopping @

ShopAdidas8 8.0 8.0 65.0

brand 35 35.0 35.0 100.0

Total 100 100.0 100.0

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?

Additionalproductline


Cumulative

Percent

Valid formal wear 28 28.0 28.0 28.0

informals 42 42.0 42.0 70.0

party wear 30 30.0 30.0 100.0

Total 100 100.0 100.0

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?

Mostpurchasedproducts


Cumulative

Percent

Valid shoes 42 42.0 42.0 42.0

caps 10 10.0 10.0 52.0

t-shirt 30 30.0 30.0 82.0

pullovers 8 8.0 8.0 90.0

tracksuits 10 10.0 10.0 100.0

Total 100 100.0 100.0

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

competitors?

promotioncomparison


Cumulative

Percent

Valid strongly agree 9 9.0 9.0 9.0

agree 39 39.0 39.0 48.0

neither agree or disagree 21 21.0 21.0 69.0

disagree 28 28.0 28.0 97.0

strongly disagree 3 3.0 3.0 100.0

Total 100 100.0 100.0

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

Strengths :

The main strength of Adidas is his Product Quality. The quality and the material uses in Adidasis 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 thats 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


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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.

Conclusions:

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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RECOMMENDATIONS & CCOONNCCLLUUSSIIOONN

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 whichADIDASand other major sports companies

need to improve upon to achieve the desired level of competitiveness. These improvements

would give ADIDAS and the other sports companies base to compete with the MNCs and help


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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/maam

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) Adidasb) Nikec) Reebokd) 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) Sachin Tendulkarb) Ricky Pontingc) David Beckhamd) Sania Mirzae) Zindine Zidane

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

a) Strongly agreeb) Agreec) Neither agree nor disagreed) Disagreee) Strongly disagree8. Are you aware about the online shopping facility provided by Adi das?

a) Yesb) No

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

a) Discount offersb) Sponsorships for eventsc) Advertisementsd) Online shopping @ ShopAdidase) Brand


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

a) Formal wearb) Informalc) Party wear

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

a. Shoeb. Capsc.

T-shirts

d. Pulloverse. Tracksuits

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

competitors?

a) Strongly agreeb) Agreec) Neither agree nor disagreed) Disagreee) Strongly disagree

Thank you for your time and for sharing your views


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BBIIBBLLIIOOGGRRAAPPHHYY

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.WALKERFUNDAMENTAL OF MANAGEMENT.

RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.
http://www.webcrawler.com/http://www.webcrawler.com/

Documents

Saurabh Report