A

SUMMER TRAINING REPORT

On

MARKETING STRATEGIES OF ADIDAS

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

SESSION 2010-13

SUBMITTED TO: SUBMITTED BY:

MR. MOHIT GUPTA

(PROJECT GUIDE)

CHIRAG SINGHAL

BBA VI SEM.

ROLL NO. 9054509

INSTITUTE OF MANAGEMENT AND RESEARCH

8th mile stone, Delhi-Meerut road Duhai, Ghaziabad

DECLARATION

I, Chirag Singhal hereby that the project entitled "MARKETING

STRATEGIES OF ADIDAS" is my original work.

Now it is an asset of VIT, Meerut all right for using the report file with the

institute. Unauthorized copying, hiring, broad casting or rental of this without

permission from the institute will be considered illegal.

CHIRAG SINGHAL

BBA VI SEM.

Roll No: 9054509

ACKNOWLEDGEMENT

First and foremost I would want to thank my Institute I.M.R, GHAZIABAD for

giving each and every student a platform of such nature where even before the

completion of two’s course, interaction with the industry and exposure to the same is

made possible.

I express my immense pleasure and solemn gratitude to Dr. Garima Chaudhary for

giving me this opportunity to study an entire sector very closely.

Last but not the least I am grateful to all those persons who were involved with me in

the project for their co-operation and support.

CHIRAG SINGHAL

BBA VI SEM.

Roll No. 9054509

CONTENTS

1. Introduction

2. Objectives of the Study

3. Company Profile

4. Marketing Mix

5. Marketing Strategy

6. Research Methodology

(a) Definition of Research

(b) Research Objective

(c) Advantage of Survey

(d) Survey Design

7. Comparative brand & Comparative Analysis

8. Findings & Analysis

9. SWOT Analysis

10. Limitations of the study

11. Conclusion

12.12. BibliographyBibliography

13. Questionnaire

Executive Summary

The entire population of the world wears shoes. Once the concept of wearing a

pair of shoes was to protect the feet, but as time passed, it became style. A lifestyle is

the person’s pattern of living in the world as expressed in activities, interests and

opinions. Lifestyle portrays the “whole person”, interaction with his or her

environment. Marketers have been searching for relationships between their products

and lifestyle groups.

In an era of style, Adidas has created has created a niche for itself among the

young and old generation. It is a multinational company that has become a part of

peoples’ lifestyle around the world. In the case of the Indian population, it has much

interaction among the young generation.

Adidas, the leader of shoes category in the world is a well-known name in

every household. It is one of the first companies in the world to make shoes for

special purposes for example specially designed shoes for football, running,

basketball, cricket and tennis etc.

The Adidas in India and abroad are franchisees and Adidas itself has a major

role in their successful running. Apart from these showrooms, it also supplies to

retailers who sell various other brands but it mainly concentrates in franchisee

showrooms.

INTRODUCTI

ON

INTRODUCTION

Our project topic is "Adidas" which is a shoe company and we are analyzing its

Marketing Strategy. We have chosen this particular topic mainly for two reasons.

Since our childhood days we had great interest in the shoes and we like to buy new

shoes as and when it comes in the market. The Shoe Company that we most admire is

Adidas. Hence we have decided to do my project report on this company.

Brief History:

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

Adidas (Ryno’s 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

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:

The turnover of Adidas Company has grown to 45 Million Rs. in 2005. 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 2005.

Future Plans

Turnover is expected to rise to 550 million rupees for Adidas India in 2009 cash break

even is fore cast during calendar year 2009 and an operating break even during 2010.

The other Adidas – owned brands, Salomon & Taylor made are expected to hit Indian

Adidas stores during 2009 and 2010.

OBJECTIVE OF

THE STUDY

OBJECTIVES OF THE MARKET STUDY

1. To understand why customers buys a particular product.

2. To know the marketing opportunities

3. To understand marketing problems

4. To help in the selection of right course of actions

5. To know about customers acceptance of the product

6. To understand the distribution network

7. To forecast the probable volume of the future sales.

8. To analyze the excepted market share

9. To assess competitive slight policies

COMPANY PROFILE

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 Dassler 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.

1990

Rob Strasser and Peter Moore of Sports Incorporated present Adidas with the

“Equipment” concept. The footwear and apparel line is introduced in 1990.

1992

Bernard Toupee purchases 80% of Adidas stock.

1994

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 Peter Moore

becomes Worldwide Creative Director.

1996

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.

1998

Adidas moves from eighth to third position in Indian Footwear Industry Rankings.

Indian Footwear and apparel sales increase by an estimated 75%.

2000

Adidas goes public on the stock exchange in Frankfurt.

2002

Performance Logo becomes the worldwide Adidas logo.

2004

The acquisition of Salomon broadens the Adidas product range to include Taylor

Made for golf products and Mavic for cycle components.

2006

Adidas achieves record sales and passes the 1 billion dollar mark in gross sales in the

India.

2008

Adidas proudly celebrates the 100th birthday of our founder, Adi Dassler

2010.

Sale of Salomon

The Salomon Group (including Salomon, Mavic, Bonfire, Cliché and Arc Terex) is

being sold to Amor Sports in October 2010. 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 2010.

2012

Adidas-Salomon AG acquires Reebok

The closing of the Reebok transaction on January 31, 2012 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.

THE TECHNOLOGY TIME LINE OF THE COMPANY

1912

Leather soccer shoes with nailed studs and track shoes with hand forged spikes are

produced for the first time in the Dassler factory.

1914

Dassler purchases his production building in Herzogenaurach. 100 pairs of shoes are

produced daily.

Late 1916s

Dassler begins producing soccer balls.

1918

Dassler fills his substantial order of 10,000 pairs of shoes.

1920

Dassler introduces soccer shoes with nail-stripe trim.

1922

The first tennis-specific shoe earns one of the more than 700 patents awarded to Adi

Dassler.

1924

400 pairs of shoes are being produced daily.

1926

Dassler now produces shoes for eleven sports. 800 pairs of shoes are produced daily.

1928

Dassler produces sports shoes made of sailcloth from military tents and rubber from

leftover American fuel tanks after World War II.

1930’s

Dassler introduces arch support lacing and an early type of speed lacing.

1932

Adidas develops the first indoor track shoe.

1934

Adidas produces the first soccer shoes with molded rubber studs.

1936

Adidas produces the first “Samba” soccer shoe, made for better traction on ice, snow

and hard frozen ground.

1938

Adidas produces the first track shoes with changeable spikes.

1940

Adidas produces the first sports bag.

1942

Adidas begins producing soccer boots with screw-in studs, helping Germany

win the World Soccer Championships in Switzerland. The screw-in studs

enable the game to be played under vastly different conditions without

slipping.

1942

2,000 pairs of shoes are produced daily.

1944

Adidas develops nylon soles for soccer shoes.

1946

Adidas produces the first track shoe with nylon half-soles.

1948

Adidas develops a rubber toe protector and rubber foxing for the training

shoe.

1950

Adidas introduces nylon half-soles with molded in-thread inserts.

1952

Adidas introduces outsoles with bending zones, which provide flexibility.

1954

Adidas produces a track shoe weighing only 96 grams, the lightest track

shoe in the world at that time.

1956

Adidas develops heel padding to protect the Achilles tendon.

1958

The first Adidas tracksuit is produced.

1960

Adidas introduces injection-molded, multi-studded, polyurethane soles.

1962

“Achilles,” the first real jogging shoe, is launched on the market.

1964

Adidas introduces the “Adilette” health sandal.

1966

Adidas introduces rain soles.

1968

Adidas introduces the plastic Philly lacing system.

1970

Adidas introduces “Adi-court” sole for indoor tennis surfaces.

1972

Adidas begins tennis racket production.

1974

Adidas introduces its first leisure shoe.

1976

Adidas introduces the “Adi-star 2000,” the first track shoe for synthetic

track surfaces.

1978

Adidas introduces the first cross-country ski binding.

1980

Adidas introduces “TRX” jogging shoes.

1982

For the first time soccer shoe is developed with a dual-density sole material.

The “Cope Mundial,” the world’s largest selling soccer shoe ever, is

launched.

1984

Adidas introduces shock-absorbing elements for sports shoes.

1986

Adidas introduces outsoles with beveled studs.

1988

Adidas develops soccer shoe sole materials in three different degrees of

hardness.

1990

Adidas introduces the “APS,” the first running shoe with an adjustable shock

absorption system.

1992

Adidas introduces the first soccer shoe with bayonet fastening and ceramic screw-in

studs.

1994

Adidas introduces the Torsion system, which allows for multi-directional flexibility. It

was designed to give the mid-foot support during twisting and flexing motions,

and proves to be revolutionary in the sports shoe market.

1996

Launch of the Equipment line: a new, performance-oriented and functional,

shoe and textile line.

1998

Adidas lunches “Tubular Technology,” the first shoe with total

customization possibilities.

2000

Predator technology for soccer footwear results in more powerful, accurate

shots.

2002

Traxion Technology combines the grip of screw-ins with the comfort of

molded cleats.

2004

Adidas introduces “Point of Deflection System” technology for running

shoes. This outsole technology provides improved shock absorption and

stability by deflecting and dispersing pressure at the point of impact.

2006

Adidas introduces “Feet You Wear,” a concept which provides extra stability

by copying the design of the human foot.

2008

Adidas introduces Teflon-coated fabric for swimwear to reduce drag.

2010

A.D.S (Adidas Drainage System): Used primarily in Adventure products, the A.D.S.

is a patented system integrated into the midsole of a shoe. Its perforated internal

midsole allows for maximum water drainage in wet environments

2012

Introduced Clime Proof: Light, breathable fabrics that block wind, rain and snow

while allowing heat and sweat to escape through evaporation, keeping you dry and

comfortable in even the harshest conditions

FOOTWEAR TECHNOLOGIES

ADIPRENE

Shock absorbing material under the heel.

Provides heel cushioning and stability.

Provides extra absorption of harmful impact forces.

Adds stability a ground contact.

Elastic material under the forefoot.

Allows a more efficient push-off.

Retains natural forces at toe-off for added forefoot efficiency.

Maximizes energy use.

TORSION

Helps control of the natural independent rotation of the heel and forefoot.

Creates stability and control.

Helps the forefoot adapt to surfaces easily.

Maintains mid-foot support.

TRAXION

Lugs in shoe bottom provide optimal ground penetration and maximum grip.

Lug placement optimizes comfort while increasing surface contact.

Adds stability at ground contact.

Meets the specific needs of different sports and surfaces.

PRO-MODATOR

Usage of TPU as lightweight mid-sole support system reduces weight of shoe

giving greater mobility.

Improved durability of mid-sole adds to life of shoes providing consistent and

stable run.

Direct moldings on mid-sole free your foot from thick inserts giving improved

toe-all.

GEOFIT FRAME

An Internal footwear technology that enhances fit and comfort by placing padding

in anatomically correct areas.

Every piece of anatomically moulded padding follows the form of the foot, evenly

distributing pressure for the ultimate fit.

Improved padding means improved comfort. Improved comfort equals enhances

sense of stability, further providing more protection.

It eliminates the internal heel counter by extending the TORSION bar to act as an

external heel counter, thus reducing weight.

QUICKSRTIKE

Light outsole improves flexibility.

Abrasion resistant lugs absorb impact.

Precise location of outsole lugs-gives consistent performance.

Improves cushioning and durability

ADIWEAR

A non-marking rubber outsole compound that offers better abrasion resistance

than any other outsole material.

ADITUFF

An abrasion resistant material used in the toe and / or lateral forefoot of the shoes

upper. It protects the upper from excessive wear.

DEFINE THE MARKETDEFINE THE MARKET

Some of the theory we have used in my project are as follows:Some of the theory we have used in my project are as follows:

Theory: Theory: what is market research and why it is important.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 pay

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.

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 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 is given in “questionnaire part” below.

MARKETING MIX MARKETING MIX

MARKETING-MIX (FOUR P’S): ADIDAS MARKETING-MIX (FOUR P’S): ADIDAS

PRODUCT :

Whatever your athletic preference, you can now purchase an extensive range of

Adidas footwear and 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.

.

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

basic concept 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

teams sketch possible prototypes.

3. The people from design and marketing consider the prototype

sketches together; narrowing the selection to those they anticipate

will most successfully meet athletes’ needs.

4. The development department then works with the design department

to create an actual prototype from the selected sketches.

5. Three separate groups – marketing, design and development – meet

and discuss how to improve the prototype.

6. 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.

7. Preview samples are presented to key accounts and consumer focus

groups for feedback. Based upon this information, final changes are

made.

8. Samples are distributed to Adidas sales representatives for

presentation to retailers.

9. The finished product is delivered to retailers.

A. 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 won’t 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 over.

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 Peas & 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 positioning. Its working with promising 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 image because that make us fashionable.

B. Words of G. Kanan (Director – Marketing)

“Our Secret is our commitment to the sports process. We develop shoes that

take into account the needs of a particular sports & the role of this brand is

driven by this factor”.

Good news for Adidas is that even in the casual market, the trend is towards

being sporty. Going to Gym is fast graduating from a mere fad to serious

body building, strengthening & toning. This is reflected in the clothes that

people wear today. The three stripes, for instance is unique property which

can be reinvented in various forms as trends changes.

C. 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 involves—developing of the right product – which can then be put to

right place & sold with the right promotion & price.

VALUE OF IT’S PRODUCTS FOR ADIDAS

Our goal is to create a product that is honest – it must perform. The rule is simple:

form follows function.

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 sells a delivery service, is it selling so much wear and tear on a

delivery truck and so much operator fatigue? As per Adidas the answer to

these questions is instead what we are really selling is the satisfaction, use

or profit the customer wants.

Adidas says that the entire customer wants is, that whatever product they

purchase should fulfill all their needs and preferences. They don’t care how

they were made. Further they want that when they order something, don’t

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 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,

installation, instruction on use, the package, perhaps the brand name which

fulfills some psychological needs a warranty and confidence that service

will be available after the purchase.

PLACE AND PHYSICAL DISTRIBUTION :

A: Place

Adidas is very much concerned about its second “p”. As per Adidas 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.

B: Physical distribution

As per Adidas nearly half of the costs of marketing are 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.

PROMOTION:

Adidas is one of the India’s biggest companies of sports that spend 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 company’s 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 manager’s 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

the company. 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

encouragement of the customer to by their products. Adidas believes sales

promotion tries to compliment the company’s selling efforts.

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.e. almost twice in a year Adidas goes for discount on sales. They arrange

contest.

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

training material for the company’s own sales force. They even design the

sales materials for the company’s 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 everyone can 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 billion.

Adidas also spends nearly $2.9 million on its advertising throughout the

world. Adidas in India is spending almost $17 million on advertising.

The heavy weight players like Sachin Tendulkar, Leander Paces and Mahesh

Bhupathi are already attached with their ad-campaigns.

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, that’s the most critical factor in the Indian context. Adidas believes it

has to deliver a functional at an affordable price. It’s 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 affordable.

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 it just the matter of time before India coverage’s the world on this front.

It is very difficult to operate on a lower price point and maintain integrity of

product, but it’s 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 price

that is relevant to the consumers.

Adidas feels that as the volume go up; Adidas will try and work out price

points as people graduate with better understanding of quality and price

perception. 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. It’s

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%, 2011 by over 50% and this year Adidas is

expecting more than 50% in terms of value in both shoes and apparel, while

the industry growth as a best case estimate has been 20-25%.

MARKETING STRATEGY

MARKETING STRATEGY

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 of

tension. Adidas gives you a chance to 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 life. You don’t have to be the

high-voltage performer to be a part of the Adidas family. And it goes beyond

that – Adidas becomes something that makes you better. Not just as an

athlete, but as a sports person, a better human being.

One of the Advertisements: The spot featuring Bolden shows him chasing a

thief (who’d 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

Bolden 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 Bolden. The bather reads any man. Any man who wears Adidas and

Adidas goes beyond athletic performance – it becomes everyday lifeline

stark reality though humorously and light, it has a deep meaning.

MARKETING: ADIDAS

In 1997, Adidas became Adidas-Salomon with its US $1.4 billion purchase of

Salomon, a French manufacturer of skis and other sporting goods. The deal put

Adidas one step closer to competitor and world market leader Nike, and one step

ahead of Reebok.

Salomon, aside from its winter sport equipment, also owns golf club brand Taylor

Made and cycle brand Manic. The merger makes Adidas/Salomon the second largest

sport marketer in the world, and number one in Europe. Salomon is currently very

strong in North America and Japan, and Adidas has the largest market share in

Europe.

Adidas is, like Nike, very active insuring sponsorships advertising deals with

celebrities. Some of the most famous are Martina Hingis (tennis), Kobe Bryant

(basketball), Peyton Manning, Paul Palmer (swimmer), Jan Ulrich (racing cyclist)

And the New York Yankees David Beckham, Patrick Kluivert and Zidane all wear

Adidas boots, the Predator Accelerator.

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 Sachin magic. “Instead of presenting

just one dimension:

The first ad connects Sachin choice of a heavy bat with Adidas’ Falcon Dorf light

weight shoes Says the headline: ‘Sachin likes his bat heavy, not his shoe.’

The second 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 company’s 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.’

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 Swami/BBDO. Says G Kanan, general

manager, marketing, Adidas: “We are the only brand with heritage in sports. As a

brand, we’re not an attitude that’s fashionable. We’re 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

wasn’t connecting too well with its consumers.

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 diffused brands and

personality-led. Says Kennan: “Sachin has and will play a major role in pushing the

brand. He is important, as there are certain values a consumer needs to know about

Adidas. But after certain duration, we have to present a global perspective too and

hence the Forever Sport campaign.”

Interestingly, Adidas claims that it did not want to be caught up in the clutter of the

World Cup promotions-and deliberately chose not to associate with the World Cup.

Instead, according to Kennan, the campaign has been broken now to coincide with the

peak season (April-June). “The World Cup is incidental. It’s too large an event to

make significance for us”, says Kennan.

However, the company is maintaining a steady and dominant presence in the media

during the Cup: strewn over select channels like Star, Discovery, and ESPN are the

Sachin ads promoting Adidas. “Star News is delivering good value while through

Discovery, we can catch the elite customer”, Kennan says.

Although Kanan admits that the sports shoe and apparel market is at a nascent stage,

he claims that Adidas has grown by over 250 per cent from last year. As a company

that takes pride in not joining the price brawl, Adidas does not intend to bring down

the prices of its products. Says Kennan: “We don’t look at driving down the

market by lowering the price. We are willing to wait for the market to evolve.”

For Adidas, the real breakthrough, says Kennan, has come through a combination of

strategies: signing on Sachin, Leander and Bhupathi, expanding its reach (it opened

45 stores last year); a revamped range which covers a band of price points; and

support to the brand. "“e built-in value pricing in our products, and supported them

through sports icons who are looked up to. We have realized that to have just one

good guy endorsing your brand is more important than having several unknown

faces”, says Kennan.

The company is enlarging the scope of its business by concentrating on apparel.

“Apparel is driving the business. Most consumers start experimenting with the brand

through apparel”, admits Kennan. Essentially perceived as a male brand, Adidas

however defends its range by pointing out that currently it has 50 items out of a total

of 250, for women.

Further, Adidas is planning to add 30 new stores this year. “We’re looking at

driving the market through exclusive stores”. Says Kennan The logic is clear: use

Forever Sport to ensure sales forever.

Never achieved profitability and collapsed under the weight of its own unrealized

ambitions.

Adidas’s objective with the new line of footwear is to generate sales leads through its

Web site, either through direct purchase or a retailer finder. Villota says that every

style of footwear has a story, particularly those endorsed by star athletes, and it’s

these stories that sell the shoes to buyers.

While Villota wouldn’t disclose how much of Bryant’s Adidas footwear is sold

online, 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.

The Adidas - Salomon Executive Board will propose paying a dividend of CC 0.92

per share to the Annual General Meeting of Shareholders on May 10, the same

amount as in the previous year.

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-Stripe brand mark became the worldwide Adidas

corporate logo. This logo represents performance and the future of the Adidas brand.

This logo is used in all advertising, 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.

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGYMETHODOLOGY

DEFINITION OF RESEARCH

1. “A systematic search for knowledge”

2. “Movement from known to unknown”.

3. Research in common refers to search for knowledge. One can also define

research as a Scientific and systematic research for pertinent information on

specific topics.

It is a way to systematically solve the research problem. In it we study various steps

that are generally adopted by a researcher in studying his research problem along with

the logic behind them. It is important for the researcher not only to understand the

research methods and techniques but also the methodology.

RESEARCH OBJECTIVE

The purpose of research is to discover answers to question through the application of

scientific procedure. The main aim of research is to find out the truth which is hidden

and which has not been discovered as yet. Though each research study has its own

specific purpose, we may think of research objectives as falling into a number of

following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insight into it

(studies with this object in view are termed as exploratory or formulate

research studies).

2. To portray accurately the characteristics of a particular individual,

situation or a group (studies with this object in view are known as

descriptive research studies)

3. To determine the frequency with which something occurs or with which it

is associated with something else (studies with this object in view are

known as diagnostic research studies)

4. To test a hypothesis of a causal relationship between variables (such

studies are known as hypothesis- testing research studies).

The research objective of the project is “Consumer Behavior and Sales

Promotion”

Advantages of survey method:-

(i) Survey is conducted in case of descriptive research studies.

(ii) Survey –type research studies usually have larger samples because the

percentage of responses generally happens to be low, as low as 20 to 30 %,

especially in mailed questionnaire studies. Thus, the survey method

gathers data from a relatively large number of cases at a particular time it

is essentially cross- sectional.

(iii) Survey are concerned with describing, recording, analyzing and

interpreting conditions that either exits or exited, The researcher does not

manipulate the variable or arrange for events to happen Survey are only

concerned wit condition or relationships that exits, opinion that are held ,

processes that are going on, effects that evident or trends that are

developing . They are primarily concerned with the present but at times do

consider past events and influences as they relate to current conditions.

Thus in survey, variables that exist or have already occurred are selected

and observed.

(iv) Survey is usually appropriate in case of social and behavioral sciences.

(v) Survey is an example of field research.

(vi) Survey may either be census or sample survey. They may also be

classified as social survey, economic survey or public surveys. The method

of data collection happens to be either observation, or interview or

questionnaire or some projective technique.

(vii) Possible relationships between the data and the unknown in the universe

can be studied through survey.

SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the technique or the procedure the researcher would adopt in selecting items

for the sample. Sample design is determined before the data are collected.

Sampling Unit: - A decision has to be taken concerning a sampling unit before

selecting sample. Sampling unit may be a geographical one such as state, district,

village, etc., or a construction unit such as house, flat, etc., or it may be a social unit

such as family, club, school, etc., or it may be an individual. The researcher will have

to decide one or more of such units that he has to select for his study.

Size of Sample: - This refers to the number of items to be selected from the universe

to constitute a sample a major problem before a researcher; the size of sample should

neither be excessively large, nor too small. It should be optimum. An optimum sample

is one which fulfills the requirement of efficiency, representativeness, reliability and

flexibility, while deciding the size of sample; researcher must determine the desired

precision as also an acceptable confidence level for the estimate. The size of

population variance needs to be considered as in case of larger variance usually a

bigger sample is needed.

The parameter of interest in a research study must be kept in view, while deciding the

size of the samples. Costs too dictate the size of sample that we draw. As such,

budgetary constraint must invariably be taken into consideration when we decide the

sample size.

Sample size of 200 consumers is taken from the target people.

Child (10 yrs to 15 yrs) 25

Students (above 15yrs) 80

Girls students 20

Business man 10

House wife 10

Government employee 25

Service man 15

Teacher 15

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

We visited the Adidas India Ltd., which is located In Mehrauli (New Delhi). We Also

Met Some Of The Marketing Executives Who Helped Me Getting The Required

Information. We 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:

We have prepared a questionnaire for the general public asking about the

marketing strategy of Adidas; in that particular questionnaire. We have asked

some question give in finding and analysis section: (the questioner is filled by 80

people).

FINDINGS

&

ANALYSIS

FINDINGS & ANALYSIS

Company research report

(A) Company Description

Adidas Salomon AG (ADIDAS) production and marketing of sports equipment,

footwear and apparel under the brand name of Adidas, Salomon, Taylor Made and

Mavic. Sales of Footwear accounted for 45% of 2010-2012 revenues; Sales of

Apparel, 35% and Sales of Hardware, 20%.

(B) Competitor Analysis

Adidas-Salomon AG operates in the Men’s & boys’ clothing sector. This analysis

compares Adidas with three other sport shoe and apparel manufacturers: Nike Inc. of

the India (2010 sales of 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 Amor Group PLC which is based in Finland (2011 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.

1. What sports do you play in your leisure time?

a) Cricket

b) Football

c) Golf

d) Jogging

e) Lawn tennis

f) Skiing

g) Swimming

h) Others

In the analysis it is found that 50% of the respondents play cricket in leisure time and

Football, Golf 5%, Jogging 10%, Lawn Tennis 5% and Swimming 10%

and others 10%.

2. What are the shoe brands you are aware of?

50

5 5

10

5 5

10 10

0

5

10

15

20

25

30

35

40

45

50

Cricket Football Golf Jogging LawnTennis

Skiing Swimming Others

It is found that most of the respondents aware of Adidas, Nike and Adidas and rest of

the respondents aware of Speedo, Fila, Puma New balance and Sketchers

and Woodland, Lee cooper.

25

5

25 25

5 5 5 5

0

5

10

15

20

25

Adidas Nike Fila Newbalance

3. How do you rate the company marketing strategy as compare to the other

competitors company like Nike, Reebok etc.?

Out of 80 people 36 had said Adidas have a good marketing strategy and should

continue like this only, 24 had said Nike is better then Adidas, 16 said Reebok is

good and 4 said others.

adidas45%

nike30%

reebok20%

others5%

adidas

nike

reebok

others

4. Do you think that the company Adidas is giving its customer what they

want in terms of quality and prices or value for money?

Out of 80 people 68 people are satisfy with the quality and the price of the product

and other says that they are not satisfy.

happy

not happy

happy 85%

not happy15%

happy

not happy

5. Do you think that the advertisements and the brand ambassador of the

company are good enough?

Out of 80 people 66 people said yes they like the advertisement very much and

rest said no they don’t like them.

82%

18% 0%

happy

not happy

6. What things you keep in mind while purchasing shoes will it be quality,

advertisement, price or design?

Out of 80 people 69 people had said that the product must have good quality and good

design and other said they purchase these shoes for status symbol only.

86%

14% 0%

quality

other factor

7. If you have to purchase shoe except Adidas which shoe it will be and

why?

Out of 80 people 42 have said Nike, 23 said Reebok and 15 others, which shows

that the main competitor of Adidas is Nike. 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, so different people have different opinion.

8. What do you think that the company Adidas must do to improve its

marketing strategy?

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.

52%

29%

19%

nike

reebok

others

ADIDAS: OVERVIEW / COMPANY’S FINANCIAL FACTS

For over 80 years Adidas has been part of the world of sports on every level,

delivering state-of-the-art sports footwear, apparel and accessories. Today, with total

net sales of Rs. 60000 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 ever country of the world. Our 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.

Internal Environment Analysis

It is one thing to discern attractive opportunities and another to have the competencies

to succeed in these opportunities. Each business needs to evaluate its internal

strengths and weaknesses periodically. It can do so by using s form like the one

shown in the marketing Memo “Checklist for Performing Strength/Weaknesses

Analysis”. Management—or an outside consultant—reviews marketing,

financial, manufacturing and organizational competencies and rates each factor

as a major strength, minor strength, neutral factor, minor weakness, or major

weakness.

Clearly, the business does not have to correct all its weakness, nor should it gloat

about all its strengths. The big question is whether the business should limit

itself to those opportunities where it might have to acquire or develop certain

strengths. For example, managers at Texas Instruments (TI) split between those

who want TI to stick to industrial electronics (where it has clear strength) and

those who want the company to continue introducing consumer electronic

products (where it lacks some required marketing strengths).

Sometimes a business does poorly not because its departments lack the required

strengths but because they do not work together as a team. In one major

electronics company, the engineers look down on the salespeople as “engineers

who couldn’t make it”, and the salespeople look down on the service people as

“salespeople who couldn’t make it”.

It is therefore critically important to assess interdepartmental working relationships as

part of the internal environmental audit.

SWOT ANALSYSIS

SWOT ANALYSIS

Strengths:

The main strength of Adidas is his Product Quality. The quality and the material uses in Adidas are 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 that’s 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 weaknesses 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 customers 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 companies 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 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.

Problems that cannot be solved

As the world grows to become one, many problems will arise that cannot be solved.

One of the primary challenges associated with globalization is balancing conflicting

and competing objectives.

In the case of Adidas, it has faced such problems already and how they have dealt

with them is with flexibility and calmness. Despite what could be higher costs, 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.

As Adidas has grown worldwide, it has had to deal with problems of heterogeneity vs.

homogeneity.

In other words, in an increasingly heterogeneous and global world, diversity in the

workplace has appeared to emerge as an issue. Companies, including Adidas are no

longer homogenous in the sense that their companies have grown worldwide. And as

a result, Adidas has had to make worldwide headquarters and produce information

and products in several different languages. Having to spread its workforce, Adidas

has come to depend on intangibles.

Measuring Intangibles & Valuing Diversity

The knowledge, worldwide experience and diversity that an Adidas employee can

bring to the table are valuable. Recently, how successful companies are in the global

world is increasingly derived from intangibles, such as these, that organizations

cannot own.

Adidas is greatly affected by these external influences since indeed it is a global

company. For some it is not common knowledge that Adidas is a German company.

This is a result of good global business. Adidas has created a product that is global

and with that diversity and knowledge greatly affect the company. Adidas must be

able to easily adapt to different cultures and must be culturally aware when

conducting business.

The long list of Adidas subsidiaries where it conducts business proves that Adidas is

constantly adapting to cultural changes and must be extremely diverse. Because of

this necessity, knowledge is greatly valued. Great changes occur in this industry and

as a result, new ideas, intuition and inspiration are an asset that is a necessity in this

industry and to remain a global company. Who leads this knowledge and maintains

diversity are the managers, yet they too are facing new changes.

SALES ANALYSIS

During the first quarter of 2013, sales at Adidas totaled 120 billion rupees. This is an

increase of 2.7% from the 120 billion rupees in sales at the company during the first

quarter of 2012. During the previous 17 quarters, sales at Adidas have increased

compared with the same quarter in the previous year.

Sales at Adidas appear to have some seasonally: during each of the previous 5 years,

sales have been highest during the third quarter, which has accounted for between

28.0% and 32.0% of the annual sales.

Adidas reported sales of 320 billion rupees for the year ending December of 2013.

This represents an increase of 9.0% versus 2012, when the company’s sales were 320

billion Rupees. Sales at Adidas have increased during each of the previous five years

(and since 2007, sales have increased a total of 226%).

RECENT SALES AT ADIDAS

(Figures in Rs)

(In 10 Lac)

In 2012, sales in India were up at a rate that was much higher than the company as a

whole: in this region, sales increased 36.0% to 110 million Rs. Adidas also

experienced significant increases in sales in Asia-Pacific.

1.792.61

3.62

5.47 6.06 6.53

0

2

4

6

8

2007 2008 2009 2010 2011 2012

COMPETITIVE BRAND

&

COMPARATIVE

ANALYSIS

LIST OF COMPETITIVE BRANDS AND COMPARATIVE

ANALYSIS

1. NIKE

2. REEBOK

3. FILA

4. SPEEDO

5. NEW BALANCE

6. SKETCHERS

7. PUMA

COMPETITIVE ANALYSIS

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 (Fortune, 2012)

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 up gradation 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.

COMPARATIVE STUDY WITH REEBOK

Reebok

The main intention behind setting up the company by J. W. Foster was one of the best

reasons possible: athletes wanted to run fast. So, in the 1890s, Joseph William Foster

made some of the first known running shoes with spikes in them. By 1895, he was in

business making shoes by hand for top runners; and before long his fledgling

company, J. W. Foster and Sons, developed an international clientele of distinguished

athletes. The family owned business proudly made the running shoes worn in the

1924 Summaries Games by the athletes celebrated in the film “Chariots of Five”.

In 1958, two of the founder’s grandsons started a companion company that came to be

known as Reebok, named for an African gazelle.

By 2000, Reebok’s sale exceeded Rs. 65 million, but a dramatic move was planned

and in 1992, Reebok introduced the first athletic shoe designed especially for women;

a shoe for a hot new fitness exercise called aerobic dance. The shoe was called

Freestyle, and with it Reebok anticipated and encouraged three major trends that

transformed the athletic footwear industry: the aerobic exercise movement, the influx

of women into sports and exercise, and the acceptance of well-designed athletic

footwear by adults for street and casual wear.

Explosive growth followed, which Reebok fueled with product extensions in which it

also became a leader. The freestyle is now a classic and is Reebok’s best selling

athletic shoe of all time. Reebok’s performance aerobic shoes have progressed

through several generations.

In the late 1990s, Reebok began an aggressive expansion into overseas market. Its

products are now available in more than 170 countries and are sold through a network

of independent and Reebok owned distributors. Creating innovative products that

generate excitement in the market place has been a central corporate strategy ever

since Reebok introduced the Freestyle shoe. In the late 1990s, a particular fertile

period began with ‘The Pump technology’ and continues today, with break through

concepts and technologies for a host of sports and fitness activities.

In February 2004, Reebok launched Reebok – a collection of street-inspired footwear

and apparel hook-ups designed for it and woman who demand and expect the style of

their gear to reflect the attitude of their lives – cool and edgy, authen aspiration. As

Reebok is inspired by today’s street fashion, its marketing needed to be culturally

relevant as well. A new global marketing campaign, called the “Sounds and Rhythm

of Sport” was launched in January 2004, and it energized industry by blitzing the

market with Reebok product launches, television and print ads, consumer and retail

promotions, and events.

The “Sound and Rhythm of Sport” global marketing campaign features Reebok’s

NBA, NFL and tennis athletes paired with the music industry’s edgiest hip-hop and

rap artists. The television spots showcase the moves and motion of the athlete

energized by the rhythm of the artist’s music.

In this comparative analysis between Reebok and Adidas, we have chosen three

products each from the two brands and classified out their details.

COMPARATIVE STUDY WITH PRODUCTS

I. CATEGORY: SHOE (REEBOK)

Reebok and Unit Casual Shoe Men’s

(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 G6 lifestyle

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 flavor. Reebok has consented to

donate fifty cents of proceeds of each pair sold to charitable causes.

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 orthoclase sock liner

Non-marking carbon rubber outsole

Style and design

This 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.

COMPARISON BETWEEN REEBOK G UNIT CASUAL SHOE MENS AND

ADIDAS SUPERNOVA T-MAC3 SHOES

Reebok Adidas Nike

Comfort √ √ √

Support √ √ √

Moulded EVA sock liner √ √ √

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 orthoclase

sock liner

√ √ √

Carbon rubber outsole √ √ ×

Fore foot cushioning × √ ×

Shock absorbing heel √ √ √

Style and design √ √ √

LIMITATIONS

LIMITATIONS

Each report has to have some limitations and restrictions. Hence the report we have

made also have some limitations regarding various aspects of the report

The Limitations are as follows:

• Time

As far as time is concerned there was no boundation of time as sufficient time was

being provided to all the students for this project report. Time was never constrained

in order to complete the project report. But we could have tried to make report much

better if we would have little more time because of the late availability of the

executives of the concerned companies. We got late appointment and due to which I

was not able to compile report in time, We was able to complete the report during the

last days of the submission of this report, cost factor which restricted met to do

anything more creative.

Though I had tried my level best to reduce the possibility of errors, but if any, We

would like to request all the readers to forgive me by considering me as a normal

human being and also take each and every responsibility of possible errors on my

shoulders.

• Miscellaneous

Though we have put my very best efforts in making this project report but because of

some unavoidable problems and circumstances we had to face lots of problems.

Sometimes we didn’t get the appointments with the concerned company’s executives

which further delayed the project report a bit.

Secondly, all the required information was not available to me, so we had to put extra

efforts in order to get that information. But there could be some information which is

still missing. Therefore, we request the readers of the project report to kindly forgive

me.

CONCLUSION

CONCLUSIONCONCLUSION

Turbulent is the word that apply 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 which ADIDAS and 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 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 them 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 up gradation 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.

BIBLIOGRAPHY

BIBLIOGRAPHYBIBLIOGRAPHY

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.WALKER

FUNDAMENTAL OF MANAGEMENT.

• RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.

Questionnaire

Questionnaire

1) What sports do you play in your leisure time?

Cricket [ ] Jogging [ ]

Lawn tennis [ ] Skiing [ ]

Football [ ] Golf [ ]

Swimming [ ] Others [ ]

2) What are the shoe brands you are aware of?

ADIDAS [ ]

NIKE [ ]

FILA [ ]

NEW BALANCE [ ]

3) How do you rate the company marketing strategy as compare to

the other competitors company like Nike, Reebok etc.?

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4) Do you think that the company Adidas is giving its customer what

they want in terms of quality and prices or value for money?

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5) Do you think that the advertisements and the brand ambassador

of the company are good enough?

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6. What things you keep in mind while purchasing shoes will it be

quality, advertisement, price or design?

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7) If you have to purchase shoe except Adidas which shoe it will be and

why?

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8) What do you think that the company Adidas must do to improve its

marketing strategy?

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THANKS