Adidas Project
Adidas Project
Adidas Project
INTRODUTION
1
EXECUTIVE SUMMERY
The Adidas sneakers were popularized by the Run DMC song “My Adidas” and
became a huge fashion trend. The Tapie affair of the company as presented by
its official web site is incomplete, perhaps because it is indirectly linked to
financial scandals. After a period of serious trouble. The death of Adolf
Dassler’s son Horst Dassler in 1987, the company was bought in 1990 by
Bernard Tapie, for 1.6 billion French francs ($320million), which Tapie
borrowed. Tapie was at the time a famous specialist of rescuing bankrupt
companies, a business on which hebuilt his fortune. Nike is the world’s 1
manufacturer and marketer of athletic footwear and apparel. Almost out of the
blue, the company established itself as one of the world’s most familiar brands
during the 1980s and 1990s.As familiar as a coke bottle or Big Mac, the Nike
“swoosh” logo came to symbolize not just sports culture, but street culture, as
the appeal of the star players who endorsed the brand was carried onto city
streets. The approach of the new century set Nike new problems.
Trainers went out of fashion, economic slowdown and labor problems hit Asian
performance. But the group has bounced back, retaining its iron grip on the
sporting apparel sector and still undisputed lender in sports-oriented street wear.
Reebok is the world’s third- largest maker of sneakers, athletic shoes and sport
apparel. Goods are sold under the brands Reebok, Rockport and Greg Norman
Collection. Reebok is also the official outfitter of the NFL and has an exclusive
deal to supply NBA jerseys beginning the season Reebok announced in July it
will merge with German Sporting apparel company adidas-saloman in a deal
valued at 3.8 billion.
ADIDAS INTRODUCTION
2
Adidas was formed by German sports apparel by the founder Adi Dassler
during the 1920’s. “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, Adidas is a global leader not only in the shoe industry, but
also in the sporting goods industry. Shoes from the Adidas are available in
virtually every country of the world. .Besides sports footwear, the company also
produces other products such as bags, shirts, watches, eyewear and other sports
and clothing-related goods. The company is the largest sports wear
manufacturer in Europe and the second biggest sportswear manufacturer in the
world, after its American rival Nike. The company’s clothing and shoe design
typically involve three parallel stripes of the same color and the same motive is
incorporated into Adidas’ official logos.
Adidas was founded in 1948 by Adolf Dassler, following the split of Gebrüder
Dassler Schuhfabrik between him and his older brother Rudolf. Rudolf later
established Puma, which was the early rival of Adidas. Registered in 1949,
Adidas is currently based in Herzogenaurach, Germany. Puma is also based
in Herzogenaurach.
The company's clothing and shoe designs typically feature three parallel bars,
and the same motif is incorporated into Adidas's current official logo. The
company revenue for 2010 was listed at €11.99 billion.
Activities of the company and its subsidiaries are directed from Adidas-
Salomon AGs headquarters in Herzogenaurach, Germany. Products: Adidas -
footwear, apparel, and hardware such as bags and balls. Salomon - Winter
sports incl. skis, snowboards, snowblades, skiboots and bindings, inline skates,
hiking, apparel. Mavic –Cycle components, Bonfire - Snowboard apparel. Arc
Teryx - Outdoor apparel, climbing equipment, Cliché - Skateboard equipment,
footwear and apparel, Taylor Made-Adidas Golf - Golf equipment, golf apparel,
golf shoes and finally, Maxfli - Golf balls, irons and accessories.
HISTORY
3
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. The
company Adidas was founded18. in the early 1920s as Gebruder Dassler
Schuhfabrik, in Herzogenaurach in Germany. Adolf Dassler designed a pair of
sport shoes in 1925 and few years later he and his brother Rudolph were selling
special shoes for tennis players and began design specific shoes for different
sports. The family company split in 1948. After the split, Adolf (Adi) Dassler
founded Adidas and his brother Rudolph founded Puma. The three-stripe logo
was designed in 1941 by Adi Dassler and he registered it as a trademark for
Adidas after the split. The strength of Adidas was its product innovation. Adi
Dassler registered more than seven hundred patents. Adidas began selling its
shoes in the United States after 1968 and in few years the company dominated
the American market. The most important marketing breakthrough was the
active promotion of global sporting events, especially the Olympics. The
connection of Adidas to the Olympics has a rich heritage. At the 1972Olympic
game in Munich, every official wore Adidas. Adidas has 107 subsidiaries in 20
countries, and exports to 160 countries.
MISSION :
Mission at action group them mission is to work together, respecting each other,
our skills and knowledge to:-
Elimination of scrap, waste, defects and errors. To create a great place to work.
Be welcomed in the communities in which we operate.
VALUES :
5
OBJECTIVES
Adidas' main objective is to become the best sports brand in the world. The
company aims to be a leader in developing the sports industry, and also set high
standards for other similar companies. Adidas also aims to help athletes perform
at their highest level, and make innovative products modelled on the athlete's
needs.
6
adidas Group Headquarters
adidas AG
Adi-Dassler-Strasse 1
D-91074 Herzogenaurach
Germany
Phone:+49 (0) 9132 84-0
Fax:+49 (0) 9132 84-2241
Reebok Europe
Reebok Europe B.V.
Atlas Complex, Africa Building
Hoogoorddreef 9a
1101 BA Amsterdam Z-O
The Netherlands
Phone:+31 (0) 20 573 4573
Fax:+31 (0) 20 573 4586
TaylorMade-adidas Golf
Taylor Made Golf Company, Inc.
5545 Fermi Court
Carlsbad, CA 92008
USA
Phone:+1 760 918 6000
Fax:+1 760 918 6014
7
adidas Sourcing
adidas Sourcing Limited
10/F, 21-22/F, Suites 1407-1470
Cityplaza Four
12 Taikoo Wan Road
Taikoo Shing, Island East
Hong Kong
Phone:+852 2149 3888
Fax:+852 2149 3898
adidas Latin America
adidas Latin America, S.A.
Business Park
Ave. Principal y Ave. La Rotonda
Torre Sur - 4to Piso
Costa del Este
Panamá, Republic of Panamá
MARKET POSITIONING
Haryana
Himachal Pradesh and
Daman etc.
BRAND VALUE
Brand value and strategy of Adidas Ag, a leading producer of sports apparel. In
2006, Adidas owned another big brand Reebok for more than3.5 million dollars.
8
The brand value of Adidas Ag, the leading leisure wear, sports footwear and
equipment producer across the globe is currently almost 2748 million dollars.
The company’s brand name is Adidas and it is displayed with a trefoil logo.
This logo, a very popular one, is a signature of Adidas brand. It had been
launched in 1972.The new Adidas logo, three stripes running across its several
products, was introduced in 1991.In 2006, Adidas acquired the Reebok brand
for 3.8 million dollars. In 2007, Adidas repositioned its Reebok brand to attract
the consumers of athletics apparel. Moreover, the company adopted several
plans to expand its brand name. Adidas has given lot of emphasis on
advertising. The strong brand management has successfully branded the
company over the world. Adidas has introduced several market campaigning
ideas, for example, the "Run Easy" campaign for the Reebok brand. After
acquisition, the main challenge was to avoid the competition between the past
two rival brands, Reebok, the producer of athletics sneaker, and Adidas. But
Reeboks brand managers have not only successfully done that but also they
increased the brand value of both Reebok and Adidas.
CHAPTER :2
Objectives of the study
9
The purpose of this study is to get familiarized with the Indian Adidas
company and its marketing to International markets. In order to
accomplish this objective, the present dissertation covers the following
objectives:
To highlight the present Market Scenario of India Adidas company.
. Find out factors influencing the people at the time of purchasing goods such as
Quality, Durability, Variety, Price, And Use in Sport s.
CHAPTER :3
Research methodology
Research methodology is a way to systematically solve the research problem,
it not only takes the research methods but also consider the logic behind the
methods. The study of research methodology for developing the project gives
10
us the necessary training in gathering materials and arranging them,
participation in the field work when required, and provides training in
techniques for the collection of data appropriate to particular problems.
SAMPLING PLAN:-
b) Source of Data: Data required for the study was collected through
primary sources i.e. market survey.
c) Sampling Size: This refers to the no. of items to be selected from the
universe to constitute a sample. This is a major problem before the
researcher. The size of sample should neither be excessively large not too
small, it should be optimum. This size of population must be kept in view for
this also limits the sample size. Sample size in this research is 50.
method of data collection Actual data is of two kinds which are following-
11
a) Primary Data: primary data are those, which are afresh and for the first
time and this happen to be original in character.
b) Secondary Data: secondary data are those data which have already been
collected by someone else and which have already been used as per required.
RESEARCH INSTRUMENTS:
questionnaire design:
As the questionnaire is self administrated one, the survey is kept self
administered one, the survey is kept simple and user friendly. Words used in
questionnaire are readily understandable to allrespondent.I have made the
questionnaire in which questions are according to theresearch and these are
convenience for the respondent.
CHAPTER:4
Overview brand
12
A group of individuals had a vision that interactive software had the potential to
become a new form of art that surpasses all the traditional medias. In 1982,
Electronic Arts was found based on the heated passion of those individuals for
creating games. 30 years later, Electronic Arts has become one of the world
leading developers and publishers of interactive entertainment software.
Although a long period of time has passed, the tradition at EA still holds true, to
develop and deliver a rich and diverse range of products for our consumers.
Video games were once considered a passing trend, but has now captivated
lives of countless young men and women and has gained the respect of many.
Once a distant vision has now become reality. We at EA Games will-Challenge
Everything.
CHAPTER :5
Consumer behavior
13
All companies concentrate on customers satisfaction for making long relation
with there customer and make a loyal customer to their brands. By the better
understand to customer behavior company can make the profit.
Consumer behavior is defined as the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of products and
services that they expect will satisfy their needs.
Personality
Perception
Consumer learning
14
Adopters of products have moved through the following five stages.
innovation.
innovation or not.
of its value.
innovation.
MAIN FOCUS:
CHAPTER :6
Product profile
PRODUCT LINE
15
Footwear
Clothing
basketball
training apparel
RUNNING
Football
16
Adidas also makes referee kits that are used in international competition
and by many countries and leagues in the world. The company has been an
innovator in the area of footwear for the sport, with notable examples including
the 1979 release of the Copa Mundial moulded boot used for matches on firm
dry pitches. It holds the accolade of the best selling boot of all time. The soft-
ground equivalent was named World Cup and it too remains on the market,
timeless and iconic.
Jabulani
Golf
Adidas Golf sells clothing, footwear, and accessories for men, women, and
youth. Men's equipment includes footwear, shirts, shorts, pants, outerwear, base
layer and eyewear. Women's equipment includes footwear, shirts, shorts, skirts,
pants, outerwear, base layers, and eyewear. Youth equipment includes both
boys and girls footwear, clothing, and eyewear.
Tennis
17
Adidas has sponsored tennis players and recently introduced a new line of
tennis racquets. While the Feather is made for the "regular player", and the
Response for the "club player", Adidas targets the "tournament player" with the
12.2 oz Barricade tour model.
Cricket
Adidas has been a longtime basketball shoe manufacturer and is one of the
leading basketball brands in the world. They are most famous for their late
18
1960s iconic Superstar and Pro Model shoes, affectionately known as
"shelltops" for their stylized hard rubber toe box. These were made very popular
in the 1980s hip hop streetwear scene alongside Adidas's stripe-sided polyester
suits.
Adidas is also the current outfitter of all 30 franchises in the National Basketball
Association (replacing the Reebok brand after the merger) and sponsors
numerous players past and present like Kareem Abdul-Jabbar and Tracy
McGrady etc.
Lacrosse
In 2007, Adidas announced the future production of lacrosse equipment, and
will sponsor the Adidas National Lacrosse Classic in July 2008 for the top 600
high school underclassmen lacrosse players in the United States.[31]
Rugby
19
shorts have been available in the USA, with seasonal leotards offered for
Spring, Summer, Fall and Holidays. Starting in Spring 2013, Adidas gymnastics
products will be available worldwide through Elegant Sports.
Skate boarding
Adidas SB (Skateboarding) are shoes made specifically for skateboarding.
Many of the shoes Adidas previously made were redesigned for skateboarding.
Adidas Skateboarding also has a skateboarding team. The team consists
of: Mark Gonzales, Dennis Busenitz, Tim O'Connor, Silas Baxter-Neal, Pete
Eldridge, Benny Fairfax, Lucas Puig, Nester Judkins, Lem Villemin,Vince Del
Valle, and Jake Brown.
Baseball
Adidas has also provided baseball equipment and sponsors numerous players
of Major League Baseball and Nippon Professional Baseball in Japan.
From 1997 to 2008, Adidas sponsored New York Yankees.
In Japan, Adidas is the official apparel sponsor for the teams Yomiuri
Giants and Waseda University.
Field Hockey
Adidas has provided Hockey equipment's and sponsors numerous players of
Germany, England, Netherlands, Australia, Spain and Belgium. They also
sponsor Reading Hockey Club, Beeston Hockey Club and East Grinstead
Hockey Club.
Adidas Fresh Impact – Limited Edition
Accessories
Adidas also designs and makes slide-style sandals, watches, eyewear,
bags, baseball caps, and socks. As well, Adidas has a branded range of male and
female deodorants, perfumes, aftershave and lotions.
20
Adissage
Adissage is also a uni-sex slide-style sandal.
Available in black, navy, light blue, black
with pink, and other assorted colors, the
sandal has the trademarked three stripes on
a velcro strap toward the front of the shoe.
On the side of the shoe, toward the heel on
either side, the manufacturer's name appears,
as well as on a round emblem in the actual
heel of the footbed. Like the Santiossage,
there are tiny black massage nubs throughout
the foot-bed for the purpose of massaging
foot aches after sport, although popular as a
casual sandal amongst non-athletes as well.
A pair of Adissage
CHAPTER :7
Marketing strategy
21
ADIDAS STRATEGIES Focus on the global major and sport lifestyle markets
“Impossible is Nothing” Women’s market Position as “Premium Brand” Three
different categories of adidas strategies:
The core benefit is to satisfy consumers’ needs or want. Caters for different
needs and wants of consumer Uphold its brand by constantly upgrading and
improving products’ innovative features and quality to satisfy its customers.
Today, Adidas has established itself as a strong brand for sports apparels.
PRICE STRATEGY
PROMOTION STRATEGY
Promotion objective Become the no. 1 brand Distributing some of the in the
world. Promotion mix advertising commonly through the mass media. Through
the use of the internet Point of Sale ‘Impossible is Nothing’ campaign.
PLACE STRATEGY
Adidas products to the various sporting Outlets e.g Royal Sporting House,
World of Sports, Sports link Adidas Outlets Online purchasing through the
internet.
GROUP STRATEGY
The adidas Group strives to be the global leader in the sporting goods industry
with brands built upon a passion for sports and a sporting life style Inspired by
22
our heritage, we know that a profound understanding of the consumer and
customer is essential to achieving this goal. ...
23
Adidas Group reconfirms strategic goals from 2010 to 2015
In November 2010, the Group unveiled its 2015 strategic business plan named
“Route 2015”, which defines strategies and objectives for the period up to 2015.
Aggressive marketing:
Customer’s relation:
Innovative outlook:
POSITIONING AND
DISTRIBUTION
POSITIONING
24
a) The shoes are comfortable as compared to any other in the
segment.
b) The apparels are stylish and designed to suit the consumer
need.
c) The eye gear and the perfumes are serving the nich segment.
COMPANY’S LOCATION:
Haryana,
Himachal Pradesh and
Daman etc.
DISTRIBUTION
DISTRIBUTION NETWORK:
they have network of more than 50,000 retail outlets all over India to sell our
footwear, which is being sold through more than 500 distributors appointed by
the company.
CHAPTER :8
ABOUT COMPETETOR’S
25
COMPETETORS
NIKE
PUMA
NIKE:
PUMA:
CHAPTER :9
26
DATA
ANALYSIS,INTERPRETATION
AND findings
1. AGE
INTERPRETATION
27
TYPES OF SHOES FREQUENCT OF PERCENTAGE OF
RESPONDENTS RESPONDENT
SPORTS 19 38%
LETEST FASHION 16 32%
FARMAL 15 30%
FREQUENCT OF RESPONDENTS
30%
38% SPORTS
LETEST FASHION
FARMAL
32%
INTERPRETATION:
Studies revealed that 38% respondents are undergraduate and they prefer to
wear sport shoes. There are 32% persons are graduate and they wear shoes
according to latest fashion and 10%respondents are post graduate and they
prefer to wear formal shoes.
3. TYPE OF FAMILY
28
Family is a group comprising a husband and wife and their dependent
children, constituting a fundamental unit in the organization of society.
60
50
40
30
NUCLEAR
JOINT
20
10
0
FREQUENCY OF RESPONDENTS JOINT
NUCLEAR
PERCENTAGE OF RESPONDENTS
INTERPRETATION:
29
Branded shoes represent status symbol of a person in the society.
FREQUENCY OF RESPONDENTS
INDIFFERENT
NO FREQUENCY OF RESPONDENTS
YES
0 5 10 15 20 25 30 35
Axis Title
INTERPRETATION:
The analysis showed that 68% consumers like to wear branded shoes. There are
other 20% consumers who never wear branded shoes and 12% not even
conscious about branded shoes..
30
A consumer can buy any product only when he or she aware about the
availability of that product in the market.
REEBOK ; 34
REEBOK ;
17
NIKE ; 22
NIKE ; 11
ADIDAS ;
22
ADIDAS ; 44
INTERPRETATION:
2. PURCHASING PLACE
31
Place play an important role in the marketing of products.
FREQUENCY OF PERCENTAGE OF
PLACE RESPONDENTS RESPONDENT
DEPARTMENTAL STORE 9 18
ORDINARY 17 34
SHOWROOM EXCLUSIVE 20 40
ANY OTHER 4 8
45
40
35
30
25
20
15 FREQUENCY OF
RESPONDENTS
10
PERCENTAGE OF
5 RESPONDENT
0
DEPARTMENTAL ORDINARY SHOWROOM ANY OTHER
STORE EXCLUSIVE
INTERPRETATION:
Most of the consumers prefer to buy branded shoes from exclusive showroom
and their percentage is 40% and 34% like to buy from ordinary showrooms and
18%, consumer go to departmental stores.
7. ADVERTISING MEDIA
32
Advertising is the art of influencing human action to buy or possess ones
product. The term “media” refers to the mean through which the advertising
information is communicated by the advertiser to the prospective customers.
FREQUENCY OF PERCENTAGE OF
TYPE OF MEDIA RESPONDENTS RESPONDENT
ADVERTISEMENT 13 26
FRIENDS 9 18
SALES PERSONS 19 38
EXCLUSIVE 9 18
FREQUENCY OF RESPONDENTS
FREQUENCY OF RESPONDENTS
38
26
18 18
INTERPRETATION:
Analysis revealed that 38% of the total respondents become aware about
particular brands through salespersons, 26% through advertisement, 18%
through friends.
3. REPURCHASE PERIOD
33
Purchasing decision of consumer depends upon the income level of the
consumer.
FREQUENCY OF RESPONDENTS
ONCE A YR
TWICE A YR
THRICE A YR
SEASONAL
SPECIAL OCCASION
INTERPRETATION:
Most of the consumer purchase once in a year andtheir percentage is 36% and
28% purchase twice a year, 4%thrice a year,24% purchase seasonally and 8%
purchase on special occasions.
34
Price and quality of the product are the main factors which affect the final
decision of the consumer.
FACTORS LARGE SOME LEAST WEIGHTED
EXTENT EXTENT EXTENT AVERAGE
. PRICE 28 13 9 2.38
QUALITY 45 5 - 2.9
SIZE 50 - - 3.5
DESIGN 26 17 7 2.38
COLOR 19 18 13 2.1
DURABILITY 35 10 5 2.6
AVAILABILITY 38 8 4 2.68
BRANDIMAG 29 19 2 2.54
E
. PRICE
50
BRANDIMAGE QUALITY
LARGE EXTENT
SOME EXTENT
AVAILABILITY 0 SIZE LEAST EXTENT
WEIGHTED AVERAGE
DURABILITY DESIGN
COLOR
INTERPRETATION:
Studies reveals that price, quality, size, design, durability, availability and brand
image fall between large extent and some extent, other attributes like colors of
the shoes lies between the some extent and least extent.
5. BRAND LOYALTY
Brand loyalty refers to that a customer being permanent consumer of brand and
he never switch over to other brand.
35
RESPONSES FREQUENCY OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
YES 21 42
NO 29 58
60
50
40
30 YES
NO
20
10 NO
0
FREQUENCY OF YES
RESPONDENTS PERCENTAGE OF
RESPONDENTS
INTERPRETATION:
Study indicates that only 42% is the loyal customers and 58% will change their
brand if all the qualities are available with the new products.
Findings
REVENUE: 10.38 BILLIAN (2009)
Consumer reaction suggests that Adidas is the marker leader among all its
close counterparts in the sport shoes and apparel segments. NIKE is chasing
its position most aggressively so now it requires maintaining its position with
new stuff. ADIDAS has been major competitor for NIKE and REEBOK.
60% Customers are still pro NIKE believer. The new stuff of the ADIDAS is
attracting the consumers more which might lead ADIDAS at the top spot in
the pack in coming financial year. Consumers are not showing that kind of
craze in ACTION for past few years. Probably it could be because of the
aggressive attention snatched by brands like NIKE and ADIDAS especially
in India. Celebrities also affect the sale of brand .ADIDAS shoes promoted
by David Beckham. 72% respondents take their buying decision after
considering the advertisement of brand. Most of respondents prefer to
purchase shoes from exclusive showrooms. Businessman, serviceman and
professionals prefer to wear formal shoes because of status and students like
to wear only sports and casual branded shoes.
CHAPTER :10
LIMITATION
37
While surveying I encounter with some problems like-
In some of the retail showroom it is not allowed to get the questionnaire filled.
Many of the respondents were not willing to fill the questionnaire.
Some people were not willing to respond and few of them who responded were
in hurry hence the active participation was lacking.
Due to which I faced difficulties in collecting information’s regarding our
questionnaire.
Another problem which I face was that people were hesitating to give
information about their views freely.
Stringent rules of labeling in the developed country markets have adversely
affected growth in export trade.
Quality standards have been set by non-importing consuming countries. Some
of these standards are not even scientific but they inhibit world trade and
increase in consumption. The cost of conforming to ever increasing regulations
in the guise of food safety, consumer right to know and ethical practices is quite
high.
CHAPTER :11
CNCLUSION AND
SUGGESTIOn
38
Conclusion
“the bottom line” of the market researchs peaks that branded shoes in india has
been increasing on day by day basis. that sounds good for international as well
as domestic market
CORPORATE REPORT:
Adidas, the world's second-biggest sportswear firm, has posted higher profits
despite seeing sales fall in the first three months of 2013.
The German company said more people were buying its higher-priced items,
helping net profits rise 6.5% to 308m euros (£260m).
Its gross profit margin on sales was 50.1%, only the second time it has ever
reported a figure above 50%.
In Frankfurt, Adidas shares jumped almost 6% in early trading.
Adidas plans a drive to boost Reebok sales in 2013, with a focus on yoga, dance
and fitness training.
SUGGESTIONS:
Department stores are the prime sales and marketing channel for branded
shoes.
BIBLOGRAPHY
list of reference for the purpose of the completing this marketing project Is as
given bellow:
BOOKS:
Marketing management
By: Philip Kotler
40
Marketing management
By: J.C Gandhi
Functional management
By: R.K.Sharma
INTERNET:
www.google.com
www.wlkipedia.com
www.paradise.com
NEWSPAPER:
Economic times
WEBSITES
google.com
MAGAZINES / NEWSPAPERS
QUESTIONNAIRE
PERSONAL PROFILE
41
1. Do you wear Branded Shoes?
A. Yes B. No
A. Formal B. Sports
C. Casual D. Any Other
A. Nike B. Adidas
C. Action D. Reebok E. Any Other
A. Nike B. Adidas
C. Action D. Reebok E. Any Other
A. Price B. Quality
C. Size D. Design E. Brand image
A. Yes B. No
42
A. Once a Year B. Twice a Year
C . Thrice a Year D. Seasonally E. Special occasion
11. Where is any increase in price of this brand, is that Effect your purchase
decision?
A. Yes B. No
12. Would you like to buy another brand if all the attributes Are Available in other
brand?
A. Yes B. No
43