Strategies On Adidas Marketing
Strategies On Adidas Marketing
ON
STRATEGIES OF ADIDAS
MARKETING
Table of Contents
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Title
Page
No.
1. Introduction
11
3. Company Profile
13
4. Marketing Mix
22
36
41
46
65
74
76
11.
Bibliography
80
82
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Introduction
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INTRODUCTION
Brand Positioning: Every purchase of the consumer is not guided by the cheapest of the
prices, but by the benefit that the Customer perceives for the investment planned. Hence, it is
critical to be appealing to the image seekers while being relevant to the value for money
seeker. With lifestyles improving and becoming important to individuals personalities, the
brands positioning and its relevance to the consumer will become more important than ever
before.
Customer Relationship Management: The experience that the consumer goes through
during the entire purchase cycle and the post purchase usage experience is critical to the
organisations future business. Managing customer relations and the experience that is offered
to her throughout will be a challenge for all players.
Channel Management: A strong influencer on the buying decision is the network, and the
organisation that manages the network better, has a substantial edge over others.
The past couple of years could be termed as the most dynamic years in the history of this
industry. The rise of MNC brands and its adverse effect on the Indian counterparts. Many
Indian brands have become almost extinct. Few Indian brands who have not only survived
but have grown during this period. Today, Saini and Jay enjoy a high brand salience and is
seen as a trusted and reliable brand, with a very high degree of product satisfaction among its
users.
Quality - Given that sports goods is a high-ticket purchase, the consumer needs a strong
reassurance from the brand in terms of reliability. Longstanding brands that have proven track
record of trouble-free product performance score on this parameter. Like any product,
electronic goods suffer wear and tear.
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PRODUCT PROFILE
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 (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
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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 stateof-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 AdidasSalomon 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.
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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 2006. cash break even
is fore cast during calendar year 2004 and an operating break even during 2005. The other
Adidas owned brands, salomon & taylor made are expected to hit Indian Adidas stores
during 2005 and 2006.
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Objectives of
the Study
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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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.
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.
1993: 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 components.
1999: 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: The 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: 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
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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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ADIPRENE
Shock absorbing material under the heel.
Provides heel cushioning and stability.
Provides extra absorption of harmful impact forces.
Adds stability a ground contact.
Adiprene
Elastic material under the forefoot.
Allows a more efficient push-off.
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Torsion
Helps control of the natural independent rotation of the heel and forefoot.
Creates stability and control.
Helps the forefoot adopt 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-Moderator
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 moulding on mid-sole frees your foot from thick inserts giving improved toe-all.
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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 an enchances
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.
Quickstrike
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 abrasian 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.
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If there are changes taking place and how this might affect what you sell
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Marketing mix
The Marketing Mix
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964
article, The Concept of the Marketing Mix: Borden began using the term in his teaching in
the late 1940's after James Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions, packaging, display,
servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped
these ingredients into the four categories that today are known as the 4 P's of marketing,
depicted below:
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Brand name
Styling
Quality
Price Decisions
Some examples of pricing decisions to be made include:
Price flexibility
Price discrimination
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Distribution channels
Warehousing
Distribution centers
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing
communication.
Promotional strategy (push, pull, etc.)
Advertising
Sales promotions
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Marketing Mix
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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.
5.
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.
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8.
9.
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. Thats the Adidas way of
doing it image is a critical part of branding strategy the world over.
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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
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.
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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.
B. For Adidas the product plays an eminent role in the enhancement of their corporate as well as
sports image:
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 product which can then be put to right place & sold with
the right promotion & price.
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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.
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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 Indias biggest company of sports that spends nearly $10 million on
its sales promotion and advertising in Indian Market.
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 companys selling efforts.
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 affordable.
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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.
Adidas feels that as the volume go up, Adidas will try and work out price points as
people graduate with
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% in terms of value in both shoes and apparel, while the industry growth as
a best case estimate has been 20-25%.
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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 nearfrozen, and the shattering glass signifies release. 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. Anyones life. You dont have to be the highvoltage 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.
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 Mavic. 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
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Manning, Paul Palmer (swimmer), jan Ullrich (racing cyclist) and the New York yankees.
David Beckham, Patrick Kluivert and Zidane all wear Adidas boots, the Predator Accelerator.
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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 Kanan: 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 a 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 associated with the World Cup. Instead,
according to Kanan, the campaign has been broken now to coincide with the peak season
(April-June). The World Cup is incidental. Its too large an event to make significance for
us, says Kanan.
However, the company is maintain a steady and dominant presence in the media during the
Cup: strewn over select channels like Star, Discovery, and ESPN are the Sachin ads
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promoting Adidas. Star News is delivering good value while through Discovery, we can
catch the elite customer, Kanan says.
Villota says that every style of footwear has a story, particularly those endorsed by star
athletes.
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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 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 highquality athletic products to help athletes perform better.
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research in common parlance refer to a search for knowledge, one can also define research
as a scientific and systematic for pertinent information on a specific topics. In fact, research is
an art of scientific investigation. Research methodology is a way to systematically solve the
research problem. It may be understood as a science of studying how research is done
scientifically .Research aim to gain familiarity with a phenomenon or to achieve new insight
into it are termed as exploratory or formulate research studies .
This research is exploratory in nature; data was collected from various primary and secondary
sources. The choice of sample scheme was guided by the fact that a reasonable amount of
information was available and representing true picture of Self help group products.
Effective market research involves 5 steps: Defining the problem and research objectives.
Developing the research plan.
Collecting the information or data
Analyzing the information.
Presenting the findings.
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The first step in the scientific methods of research study is the research design.
Research Design
It is the plan structure and strategy of investigation convinced so as to obtain answer to
research question. It is purely and simply the framework or plan for study that guides the
collection of analysis of data. It is a blueprint that is followed on completing the study.
Designing of a research plan calls for decisions on the Data sources, Research approaches,
Research instruments, Sampling plan, and Contact methods.
Sample Unit customer
Sample Size 80
Sample groups Students, Farmers, Professionals, shopkeepers, housewives,
Retailers
Sample
For the purpose of completion of this particular project consumers were interviewed.
The sample sizes of 80 were taken in order to come up with the result.
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Data collection
Data collection is a key activity of research. Data collection method is the backbone of
research design; there are two types of data
1. Primary data primary data is a data gathered first time by the researcher. Primary data
can be collected through observational studies, market surveys or experiments.
2. Secondary data secondary data is the data collected by any other person other than the
researcher .the data collected may be internal or external. Collected data may be for the same
purpose or any other purpose.
Keeping in mind the research objective, the problem is to collect the relevant and
required information. The information required is a collection of coherent or relevant
numerical observations or events with their relevance with each other.
and industry,
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6.
Public records and statistics, historical documents, and other sources of published
information.
7. Main support in data collection is provided by internet & different websites related to Self
help group products.
Exploratory research:
Exploratory research studies are also termed as formulative research design. The main
purpose of such studies is that of formulating a problem for more precise investigation or of
developing the working hypothesis from an operational point of view. The major emphasis in
such studies is on the discovery of ideas and insight.
Method used:
Survey: Surveys are concerned with describing, recording, analysing and interpreting
conditions that either exist or existed. The researcher does not manipulate the variable or
arrange for events to happen. Surveys are only concerned with conditions or relationships that
exist, opinions that are held, processes that are going on, effects that are 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 surveys, variables that
exist or have already occurred are selected and observed.
Experimental research provides systematic and logical methods for answering the question,
What will happen if this is done when certain variables are carefully controlled or
manipulated? In fact, deliberate manipulation is a part of the experimental method. In an
experiment the researcher measures the effect of an experiment which he conducts
intentionally.
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RESULTS
AND
INTERPRETATION
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Interpretation:
Most of the costumers like sports. About 90% costumers respond that they like to watch as
well as play sports. Where 10% respondents did not like sports.
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Cricket
b)
Football
c)
Golf
d)
Jogging
e)
Lawn tennis
f)
Skiing
g)
Swimming
h)
Others
Interpretation:
50
50
45
40
35
30
25
20
15
10
10
10
Golf
Lawn Tennis
10
0
Cricket
Swimming
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%.
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25
25
25
25
20
15
10
5
5
0
Adidas
Nike
Fila
Newbalance
Interpretation:
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.
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3. How do you rate the company marketing strategy as compare to the other
competitors company like Nike, Reebok etc.?
reebok
20%
others
5%
adidas
nike
adidas
45%
nike
30%
reebok
others
Interpretation:
Out of 80 people 36 had said Adidas have a good marketing strategy and should continue like
this only, 24 had said Nike is more better then Adidas, 16 said Reebok is good and 4 said
others.
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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?
Interpretation:
Out of 80 people 68 person are satisfy with the quality and the price of the product and other
says that they are not satisfy.
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5. Do you think that the advertisements and the brand ambassador of the company
is good enough?
Interpretation:
Out of 80 people 66 person said yes they like the advertisement very much and rest said
no they dont like them.
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6. What things you keep in mind while purchasing shoes will it be quality,
advertisement, price or design?
0%
14%
quality
other factor
86%
Interpretation:
Out of 80 people 69 people had said that the product must have good quality and good design
and other said they purchase these shoe for status symbol only.
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7. If you have to purchase shoe except Adidas which shoe it will be and why?
nike
19%
29%
52%
reebok
others
Interpretation:
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.
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8.
What do you think that the company Adidas must do to improve its marketing
strategy?
Interpretation:
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.
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Swot Analysis
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compete with their competitors and also the customer have more choices to choice the
product from.
Threats:
Adidas does not have strong distribution network as compare to Nike and Reebok in India.
Nike has more number of retail outlet then Adidas and Reebok has a unique distribution
network, the company Reebok not only use its outlet for the sale of their product but also use
some other shoes company outlet like Bata. In a Bata showroom u can find Reebok shoes
and other products. But this is not a case with Adidas hence Reebok has a extra advantage
over Adidas.
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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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.
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.
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
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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.
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Sales Analysis
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SALES ANALYSIS
During the first quarter of 2009, sales at Adidas totalled 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 2008. 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 2007. This
represents an increase of 9.0% versus 2008, when the companys sales were 320 billion
Rupees. Sales at Adidas have increased during each of the previous five years (and since
2003, sales have increased a total of 226%).
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7
6
5
4
3
2
1
0
5.47
2.61
6.06
6.53
3.62
1.79
2003
2004
2005
2006
2007
2008
In 2008, 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.
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Competitive
Brand
&
Comparative Analysis
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1.
NIKE
2.
REEBOK
3.
FILA
4.
SPEEDO
5.
NEW BALANCE
6.
SKETCHERS
7.
PUMA
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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,
2004)
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 formoney strategy.
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In the late 1980s, 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
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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 1980s, 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 Rbk 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 aspirational. As Rbk is inspired by
todays 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 Rbk product launches, television
and print ads, consumer and retail promotions, and events.
The Sound and Rhythm of Sport global marketing campaign features Reeboks NBA, NFL
and teanis athletes paired with the music industrys edgiest hip-hop and rap artists. The
television spots showcase the moves and motion of the athlete energized by the rhythm of the
artists music.
In this comparative analysis between reebok and adidas, we have chosen three products each
from the two brands and classified out their details.
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1387196
Price
Rs. 3,600.50
Features:
Soft pad
Comfort
Support
Moulded Midsole
Cushion
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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.
2. CATEGORY : SHOE (ADIDAS)
Adidas supernova T-MAC 3
Item no. : 3636825
Price : Rs. 4,500.00
Features:
Comfort
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 adidas optimizes grip on soft to very soft natural playing surfaces and excellent feel and
fit.
NIKE :
COMPARISON BETWEEN REEBOK G UNIT CASUAL SHOE MENS AND ADIDAS
SUPERNOVA T-MAC3 SHOES
Reebok
Adidas
Nike
Comfort
Support
Cushion support
Supportive pad
Moulded midsole
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Limitations
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LIMITATIONS
Each reports 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 a constrain in order to
complete the project report. But we could have tried to make report much more 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.
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
didnt get the appointments with the concerned companys 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.
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Recommendations
&
Conclusion
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Turbulent is the word 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.
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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 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.
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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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Bibliography
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BIBLIOGRAPHY
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
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QUESTIONNAIRE
1.
2.
3.
4.
5.
6.
(b) Football
(c) Golf
(d) Jogging
(f) Swimming
(g) Others
8. Which type of shoes you prefer?
(a) Branded
(b) Non-branded
9. Do you have awareness regarding these brands of shoes?
(a) Adidas
(b) Nike
(c) Fila
(d) Puma
(e) Woodland
(g) Sketchers
(h) Sketchers
10. How do you rate the company marketing strategy as compare to the other competitors
company like Nike, Reebok etc.?
(a) Adidas
(b) Nike
(d) Reebok
(e) Others
11. Do you think that the company Adidas is giving its customer what they want in terms
of quality and prices or value for money?
(a) Happy
12. Do you think that the advertisements and the brand ambassador of the company is
good enough?
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(a) Happy
(b) Not happy
13. What things you keep in mind while purchasing shoes?
(a) Quality
(b) Advertisement
(d) Price
(e) Design
14. If you have to purchase shoe except Adidas which shoe it will be and why?
(a) Nike
(b) Reebok
(c) Others
15. What do you think that the company Adidas must do to improve its marketing
strategy?
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