ADIDAS - MARKETING STRATEGY

Adidas was founded in 1948 by Adolf Dassler, following the split of Gebrder 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, along with Puma.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 "Three Stripes" were bought from the Finnish sport company Karhu Sports in 1951. The company revenue for 2010 was listed at 11.99 billion. MISSION STATEMENT MISSION OF THE COMPANY The adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle. We are consumer focused and therefore we continuously improve the quality, look, feel and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. We are a global organization that is socially and environmentally responsible, creative and financially rewarding for our employees and shareholders. We are committed to continuously strengthening our brands and products to improve our competitive position. We are dedicated to consistently delivering outstanding financial results.

MISSION OF THE MARKETING PLAN To devise a marketing plan and formulate strategies which would help in the achievement of the marketing objectives of the company which are, Market penetration gaining market share across all markets in which we compete Market development expanding into new markets and addressing new consumer segments Awareness - increasing awareness and visibility across all brands, providing clear and consistent messaging and supporting product initiatives at the point-of-sale.

MARKETING STRATEGY
People purchase products or services for three basic reasons:

To satisfy basic needs. To solve problems. To make themselves feel good

TARGET MARKETS The target market of Adidas is the urban youth with the brand proposition competition to lifestyle. The principle consumption centres namely the metros are also a potential target market! MARKET NEEDS Comfort Durability Style Price Brand SITUATION ANALYSIS THE CHALLENGE

COMPETITIVE SCOPES THE INDUSTRY ADIDAS is in the sportswear, apparel and sports accessories industry. The main competitors of ADIDAS in the industry are NIKE, and PUMA since it acquired REEBOK in January, 2006. NIKE Nike is currently the world leader in Sports goods industry with a brand value of $12,672 million. The company concentrates on style and technology with a high price range of the products.

PUMA AG A German based company best known for its football shoes and athletic shoes. The competition from Puma has become stronger after the 2008 Olympics in which the Jamaican sprinter Usain Bolt broke records and won 6 gold medals. Bolt was wearing Puma shoes!

PRODUCTS AND APPLICATIONS

COMPANY ADIDAS

PRODUCTS RUNNING Shoes, spikes, socks, FOOTBALL Studded boots, stockings, team-its, warm up suites BASKETBALL Shoes, jerseys n shorts, team kits GOLF TAYLORMADE Hats, gloves, bags, vintage clubs (golf sticks), golf balls, putters, CASUAL Footwear and clothing Apparels and accessories

NIKE FOOTBALL Boots, jerseys, shorts, stockings, team kits, warm up suites, BASKETBALL Shoes, jerseys, shorts and team kits GOLF Shoes, golf balls, apparel ATHLETICS Shoes, spikes, compressor apparel, training kits NIKE+ i-pods and watches CASUAL Footwear , apparels and accessories PUMA FOOTBALL Boots RUNNING Shoes, studs, warm up suites and training kits GOLF Golf ball and apparels MOTORSPORT Apparels, equipments and footwear SAILING Chute, board shorts, cruising jackets and accessories CRICKET Bats, gloves, pads, footwear, training kits, apparels and equipments. PRODUCT OFFERINGS Comfort, durability, looks, value for money! COMPETENCE The firm has a stiff competition in the Indian market. Currently, Nike is the leading player in the industry.

 Multi-Brand Approach There is a natural limit a brand can achieve given the diverse tastes and expectations of a highly fragmented consumer market. Thus, a multi-brand approach will provide the firm with a major competitive advantage and significant additional commercial opportunities compared to a single brand strategy. It can leverage the power of its brands in a more precise and meaningful way, utilizing the combined strengths of each to compete for a higher percentage of the market, covering a greater number of consumer needs, price points and demographics. r distribution Close cooperation with retailers can significantly improve the in-store experience for the product. Establishing shop-in-shop formats (e.g. with JJB and Dicks Sporting Goods) or retail partnerships (e.g. with INTERSPORT) are examples where the company is leading the industry. Such co operations can be particularly effective in markets that have become dominated by price and lack of differentiation. Broade

leadership The acquisition of Reebok has created significant opportunities to reduce and optimize costs, through scale benefits, back office consolidation and combined capital expenditure planning. MARKET SEGMENTS phic segmentation : Urban and semi-urban cities raphic segmentation to 35 level: >Rs. 15,000 class: Upper middle, lower upper and upper class : Male and female oural segmentation

Cost

Geogra Density

Demog Age: 15 Income Social Gender

Behavi

BENEFITS SOUGHT s regulars enthusiasts freaks seekers USER STATUS USAGE RATE BUYER READINESS STAGE LOYALTY STATUS ATTITUDE graphic segmentation ncers rs drivers PORTERS GENERIC COMPETITIVE STRATEGY The DIFFERENTIATION strategy would help the firm in competing in a competing market place. In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions it self to meet those needs. The firm has a strong grip only in the basketball and casual wear product line. Diversification of the products athletics, cricket and hockey would enormously help the firm in competing in such a market as cricket is the most popular sport in India. This would be a tough task since Nike is the sponsor of the Indian national cricket team. Strivers Image Achieve Experie Psycho Image Brand Sports Gym Athlete

ADIDAS Strategy in India Adidas strategy in India has been consistent over the past few years. The broad elements of the strategy are to target the brand to urban youth with our brand proposition from competition to lifestyle using the authentic sports platform and build and reinforce credibility through relevant brand ambassadors and grassroots sports marketing programs. Further, it would target principal consumption centres, namely metros and build significant stand-alone exclusive store presence in significant locations. The strategy would be to play to our strengths, i.e. in apparel and mid to high priced footwear.