43300948 marketing strategies by adidas

7/29/2019 43300948 Marketing Strategies by Adidas

1/22

MARKETING PLAN BY

The Team:

Preeti Bhavadas Amit ShettyNithya K.

Jignesh Mehra Pramila Rawat


2/22


3/22

HISTORY

Adidas Inc. is a marketer of sports apparel and athletic shoes.

Adidas was formed by German by the founder Adolf (Adi) Dassler

during 1920s.

The company Adidas was founded in the early 1920s as Gebruder

Dassler Schuhfabrik in Herzogenaurach in Germany. Adolf Dassler designed a pair of sport shoes in 1925 and few years

later he and his brother Rudolph were selling special shoes for

tennis players and began design specific shoes for different sports.

The family company later split in 1948. After the split, Adolf (Adi)

Dassler founded Adidas and his brother Rudolph founded Puma. The three-stripe logo was designed in 1941 by Adi Dassler and he

registered it as a trademark for Adidas after the split.


4/22

OVERVIEW

Adidas is the groups core brand and a leader in the sporting goods market.

At the heart of Adidas is- PASSION:

Passion for Sports

Passion for Athletes

Passion for Products.

Adidas is a brand built on leading technology and cutting-edge design. It is abrand identified and respected by consumers for its innovative, inspirational

and authentic values.

Adidas is organized into three consumer-oriented product divisions: Forever

Sport, Originals and Equipment. This structure is unique to the industry and

reflects the brands commitment to meet changing market demands, while

remaining anchored to its brand principles and heritage. Performance-oriented footwear, apparel and hardware products will always

remain the lifeblood of adidas.


5/22

Products of Adidas Group

Adidas

Footwear, apparel, and hardware such as bags and balls

Reebok

Footwear, apparel and hardware

Rockport

Footwear

Taylor Made- Adidas Golf

Golf Equipment: metalwoods, irons putters, golf balls, footwear,

apparel and accessories


6/22

Adidas in India

1989 Ventured India market on a license agreement with Bata.

1996 Joint venture with Magnum International Trading Co. Ltd.

1998 Sachin Tendulkar was the first Brand Ambassador for India.

1999 Introduced the cheapest range of shoes they had ever sold.

2001 First televised advertisement for India: Paes & Sachin

2004 Advantage Adidas Campaign kicks in 30% growth milestone

2005 Andreas Gellner became the new MD, India.

* Christopher Bezu is the head of Adidas Asia Pacific


7/22

Marketing Plan

The Game Plan unveiled by Adidas in India is to become the number

one sports brand in the country by 2010, either through Reebok or

Adidas.

In Asia Adidas India wants to become number one company by 2010,

as of now India is lagging behind other countries in the region atnumber four, way behind the likes of Japan, China and Korea

According to Bezu, In the sports gear market, we are already number

two as a brand, and number one as a group company in India.

The company has already commissioned a survey to study consumer

trends in India. Besides, it is experimenting with new formats andmanaging retail operations.

About 13% to 14% of our net sales are invested back in developing the

markets. That is the growth strategy


8/22

Mission of Marketing Plan

To devise a marketing plan and formulate strategies which would help

in the achievement of the marketing objectives of the company which

are;

Market penetration gaining market share across all markets in which

we compete.

Market development expanding into new markets and addressing

new consumer segments.

Brand Awareness - increasing awareness and visibility across all

brands, providing clear and consistent messaging and supporting

product initiatives at the point-of-sale.


9/22

Marketing Strategies

Adidas outsources its production and only focuses on marketing

Adidas believes that marketing is much more important because shoe

is in the shopping goods category.

Focus and target all sports that are popular in India.

Cooperate with famous designers Change the traditional image of sport.

Associate their brand with Major Sporting Events.

Hire A Class sports personalities to market and endorse their

various range of products.

Partnering with events meant for Young audience like Music channels,Rock Shows, Sporting events to target Urban Youth Market.


10/22

Marketing Strategies

The strategy of Adidas in India has been consistent over the past few

years. The broad elements of the strategy are to target the brand to

urban youth with our brand proposition from competition to lifestyle

using the authentic sports platform and build and reinforce credibility

through relevant brand ambassadors and grassroots sports marketingprograms.The principle consumption centres namely the metros are

also a potential target market.

Further, it would target principal consumption centres, namely metros

and build significant stand-alone 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.


11/22

MarketingStrategies

Adidas is also focused in Marketing with respect to the needs of the

customer like;

Comfort

Performance

Durability

Style

Price

Brand

3.45

13.79

50

24.14

5.173.45

0

5

10

15

20

25

30

35

40

45

50

Price Durability Comfort Looks Brand Others


12/22

Marketing Strategy- Competence

Multi-Brand Approach

There is a natural limit a brand can achieve given the diverse tastes

and expectations of a highly fragmented consumer market. Therefore

Adidas being a multi-brand entity, their approach provides 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.

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.


13/22

Marketing Strategy- Competence

Broader Distribution

Adidas follows the strategy of closely monitoring and co-

operating with the retailers, so that they can significantly

improve the in-store experience of the product. Retail

partnerships is also helping the firm to improve effectivenessin the market which is dominated by price and lack of

differentiation.


14/22

SWOT ANALYSIS

Largest International portfolio of

sport ambassadors.

Sponsors football teams with

maximum fan following in India

and USA. Highest brand image in India

Adidas focuses on performance

development and technology

development.

Adidas is popular in among soccerand athletic fans

Reebok has the largest market

share in India

22.94

25.29

28.24

7.65

2.35

13.53

0

5

10

15

20

25

30

Nike adidas Reebok Power Puma Others

STRENGTH


15/22

SWOT ANALYSIS

WEAKNESS Rigid pricing structure

Has not done well in the Indian subcontinent market as compared to

its competitors Nike and Puma

Least preferred brand among the three and currently stagnating

Negative image portrayed by poor working conditions in its overseas

factories.

OPPORTUNITIES

Increasing demand in the industry for products available online

Increase female participation in athletics

New technology and innovation to stay on top of market need.

Collaborate with other online retailers to offer Adidas products

Positive and increasing market trends can increase through the

effective advertising.


16/22

SWOT ANALYSIS

THREATS

Nike's strong reputation in the footwear and apparel industry

Strong competition from some of its major challengers in all

branches of the business Economic downturn in Asian Countries

Increase in the Price of Raw materials


17/22

PRODUCT

Attracting competitors' customers.

Sharper product differentiation.

Finding other products' uses.

Increasing promotional effort.

PRICE

Increasing present customers' rate of

usage.

Increasing the units of sales.

Special price packages / cross-selling

products

Reduction in price.Price incentive for increased use

PROMOTION

Attracting other market segments.

Seeking other distribution channels.

Advertising in other media.

PLACE

New geographical markets.

National market expansion.

Regional market expansion.

Export market expansion.

4Ps of ADIDAS


18/22

Market Segmentation

Geographic Segmentation:

Density: Urban and Semi-Urban Cities

Demographic Segmentation:

1. Age: 15 to 45

2. Income level: Greater than 15 Thousand per month.

3. Social Class: Upper middle class, Lower upper class and upperclass


19/22

Market Segmentation

Behavioural Segmentation:

Pyschographic Segmentation

Experiencers

Achievers

Image Drivers

Strivers

Benefit Segmentation

Athletes

Gym Regulars

Sports Enthusiasts

Brand Freaks

Image Seekers


20/22

Distribution Channel

All products of Adidas Group in India are outsourced from Asian

countries like Taiwan, Indonesia and Malaysia. 96% of Adidass

footwear and 78% of apparels are produced or sourced from Asia.

Adidas Globally operate on a third party contract manufacturing

model. In India, Adidas has two contract manufacturers. One of themis a Taiwan Based company Apache based out of Nellore, Andhra

Pradesh.

Adidas follows a basic franchisee model distribution process. After

the footwear and apparels are imported from the outsourced countriesto the contract manufacturers. Goods are then distributed to the

regional warehouses, from here they are forwarded to respective

franchisees. Footwear and apparels are then available to the

consumers from these respective franchisees.


21/22

Bibliography

http://www.adidas.com/in

http://www.google.com

http://economictimes.indiatimes.com/

http://www.thehindubusinessline.com/

http://www.financialexpress.com/

http://www.wikipedia.com


22/22

Thank You!!!

43300948 marketing strategies by adidas

Documents