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1 Introduction to Branded Sports Shoes

This project takes a look in various kinds of Merchandising activities, Market Share of different sports shoes and various Sales Promotion schemes, which are followed in the Sports shoes industry. The three major global players i.e. Reebok, Nike and Adidas dominate the sports shoes industry in India. India is one of few battle grounds in the world where there is neck-to-neck competition between the three. The companies claim to be in number one sport coating the data produced by two different marketing research companies. In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneaker was popularized by the Run DMC song "My Adidas" and became a huge fashion trend. The Tapie affair the history 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 ($320 million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, a business on which he built 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 (briefly) 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 leader in sports-oriented street wear. Reebok is the world's third-largest maker of sneakers, athletic shoes and sports 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 this season. Reebok announced in July it will merge with German sporting apparel company AdidasSalomon in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2008 and will create the second-largest sporting goods company behind Nike with $11 billion in revenues.
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1.2 COMPANY PROFILE OF REEBOK 1.2.1 Introduction:

Reebok is the world's third-largest maker of sneakers, athletic shoes and sports 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 this season. Reebok announced in July it will merge with German sporting apparel company AdidasSalomon in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2006 and will create the second-largest sporting goods company behind Nike with $11 billion in revenues. Reebok will maintain its corporate headquarters in Germany and its North American headquarters in Portland, OR. Paul Fireman will remain as Chief Executive Officer of Reebok International Ltd. and will continue to lead the Reebok team. Reebok will continue to operate under its name and will retain its headquarters in Canton, MA. In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7 billion.

1.2.2 Brief History

Reebok's origins go back to 1895 when Joseph William Foster made running shoes with spikes in them. He formed a company called J.W. Foster and Sons which made shoes for top runners. The family-owned business made the shoes for athletes in the 1924 Summer Olympics. In 1958, two of the founder's grandsons started a companion company that came to be known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok shoes at an international trade show. He negotiated for the North American distribution license and introduced three running shoes in the U.S. that year. At $60, they were the most expensive running shoes on the market. By 1981, Reebok's sales exceeded $1.5 million, but a dramatic move was planned for the next year. In 1982, 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 the 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
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acceptance of well-designed athletic footwear by adults for street and casual wear. Reebok went public in 1985.

1.2.3 Current Performance: Reebok & Fit Shoes

Athletic Shoes: o 30% of total shoe sales o 40% of wholesale market controlled by Adidas and Nike

Reebok purchased by Adidas in 2006 o 20% of Adidass sales from Reebok

Fit Shoe category becoming bigger o 1% of all athletic shoe sales o 36 million units & $888 million sales in 2010

2009: Reebok launches Easy Tone Walking shoe for women Reebok most successful new product in 5 years Average Price: $100 Sold out on backorder at most retailers

Strategy
Advertising will help Reeboks EasyTone line become the leader in toning footwear by a hybrid of continuous and fighting advertising patterns. Continuous advertising will increase brand awareness in the toning shoe market, while fighting will capitalize on more prominent periods. Our fighting period will consist of advertising in time for Black Friday and the Christmas season, and increased advertising in the beginning of January to target the New Years Resolution consumers.

Our strategy will also include the following alternative ways of advertising: Sponsoring Relay for Life, including participation in Relay for Life by Reebok. Percentage of profits of EasyTones sold at Relay for Life will go towards cancer awareness. Discounts for bringing in old pairs of Reeboks In our Bucks for Boks promotion. Discounts when consumers join Curves, an all women's gym. Point of purchase displays to push consumers to choose Easytones over Skechers. Online rebates to increase web traffic.

Advertising will place the following positioning statements in the mind of the consumer: EasyTones are the first in style, fashion, and comfort for toning shoes. Reebok is the most desired brand in the toning shoe market. Balance pod technology is above all other toning technology.

1.2.4 Vision and Mission Statement

Reeboks vision Fulfilling Potential: Reebok is dedicated to providing each and every athlete - from professional athletes to recreational runners to kids on the playground - with the opportunity, the products, and the inspiration to achieve what they are capable of. Everyone has the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought unreachable. Reeboks Mission Always Challenge and Lead through Creativity. At Reebok, they see the world a little differently and throughout their history have made their mark when they've had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand's unlimited creative potential.

1.2.5 Benefits
Medical Insurance Employees who work at least 20 hours per week are eligible to join our group medical plans after one month of employment. We currently offer three health plans (depending on your geographical location) so that you may choose the plan that best suits your needs. All of our plans have prescription drug coverage.

Dental Insurance (For both New England and Non New England: Delta Dental) Employees who work at least 20 hours per week are eligible to join our group dental plan after one month of employment. We currently offer two dental options so that employees may choose the plan that best suit their needs.

Group Life Insurance & AD &D (Prudential) Full-time employees We currently offer $10,000, one times an employee's base pay or two times an employee's base pay; supplemental life up to $300,000. The maximum coverage for Life and AD&D are $500,000 each.

Long-term Disability Full-time employees Coverage begins on the 91st day of disability. We offer three different levels of coverage - 50%, 60% and 70% of base earnings.

Short-term Disability Full-time employees coverage equals 100% of base earnings for up to 90 days. Travel accidental death & dismemberment (American International Group) Five times your annual salary to a maximum of $1,000,000. Coverage is free.

Reebok Employee Stock Purchase Plan All Employees with six months of service may elect to participate in the Reebok Stock Purchase Plan. Employees may contribute between 2% and 10% of their weekly earnings on an after-tax basis to buy stock at a special discount at the end of an option period. Option periods begin on January 1 and July 1.
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Reebok Savings and Profit-Sharing Retirement Plan All employees with one year of service (and over age 21) are eligible to participate in the 401(k) plan. Under this plan, employees may contribute between 1% and 80% of pre-tax earnings, choosing how their contributions are invested. To encourage participation, Reebok provides an employer matching contribution of 50 cents for each $1.00 saved by the employee, up to 10%. This matching contribution is invested over a five year period. Unless employees call to decline participation or change their contribution percentage, all newly hired employees will be automatically enrolled at 2% and defaulted into the Stable Value Fund, after completing the eligibility requirements.

Paid Vacations Twelve Vacation time is accrued on a monthly basis. Full-time employees accrue .833 days per month with a maximum of 10 days in a calendar year. In the calendar year in which employees celebrate their fifth anniversary, vacation is increased to three weeks, in the calendar year of their tenth anniversary, vacation is increased to four weeks per year and in the calendar year in which the employee celebrates their twentieth anniversary, vacation is increased to five weeks per year. Part- time employees working at least 20 hours per week accumulate vacation time on a prorated basis.

Paid Sick Leave Full-time non-exempt (generally those paid on an hourly basis) employees accumulate? Day sick time per month for the year. Part-time a 40% discount on apparel and footwear products purchased at the company outlet stores50% discount at all concept stores.

Fitness and Wellness Centers For a low price, employees at the Canton and Lancaster sites may access exercise classes, wellness activities and state-of-the-art equipment in our professional staffed fitness centers.

Business Casual Environment Save the stiff, uncomfortable stuff for social events. Suits and ties are not required.

1.3 COMPANY PROFILE OF NIKE 1.3.1 Introduction:

Nike India Ltd (BIL) is Indias largest footwear company. Nike first established itself in India in 1931 and commenced manufacturing shoes in Batanagar in 1936. The company has its Headquarters in Kolkata and manufactures over 33 million pairs per year in five plants located in Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka), Patna (Bihar), Hosur (Tamil Nadu). It secures its leather supply from two tanneries in Mokamehghat (Bihar) and Batanagar (West Bengal). It has a distribution network of over 1,500 retail stores and 27 wholesale depots provide excellent access to consumers and wholesale customers throughout India. Nike is also 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 (briefly) 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 leader in sports-oriented street wear.

1.3.2 History of NIKE

NIKE, pronounced NI-KEY, is the winged goddess of victory according to Greek mythology. She sat at the side of Zeus, the ruler of the Olympic pantheon, in Olympus. A mystical presence, symbolizing victorious encounters, NIKE presided over history's earliest battlefields. A Greek would say, "When we go to battle and win, we say it is NIKE." Synonymous with honored conquest, NIKE is the twentieth century footwear that lifts the world's greatest athletes to new levels of mastery and achievement. The NIKE 'swoosh' embodies the spirit of the winged Goddess who inspired the most courageous and chivalrous warriors at the dawn of civilization. (From Nike Consumer Affairs packet, 1996) Nike (US)

The Swoosh The SWOOSH logo is a graphic design created by Caroline Davidson in 1971. It represents the wing of the Greek Goddess NIKE. Caroline Davidson was a student at Portland State University in advertising. She met Phil Knight while he was teaching accounting classes and she started doing some freelance work for his company. Phil Knight asked Caroline to design a logo that could be placed on the side of a shoe. She handed him the SWOOSH, he handed her $35.00. In spring of 1972, the first shoe with the NIKE SWOOSH was introduced.....the rest is history! (From Nike Consumer Affairs packet, 1996) The Nike athletic machine began as a small distributing outfit located in the trunk of Phil Knight's car. From these rather inauspicious beginnings, Knight's brainchild grew to become the shoe and athletic company that would come to define many aspects of popular culture and myriad varieties of 'cool.' Nike emanated from two sources: Bill Bower mans quest for lighter, more durable racing shoes for his Oregon runners, and Knight's search for a way to make a living without having to give up his love of athletics. Bower man coached track at the University of Oregon where Phil Knight ran in 1959. Bower mans desire for better quality running shoes clearly influenced Knight in his search for a marketing strategy. Between them, the seed of the most influential sporting company grew. The story goes like this: while getting his MBA at Stanford in the early '60s, Knight took a class with Frank Shallenberger. The semester-long project was to devise a small business, including a marketing plan. Synthesizing Bower mans attention to quality running shoes and the burgeoning opinion that high-quality/low cost products could be produced in Japan and shipped to the U.S. for distribution, Knight found his market niche. Shallenberger thought the idea interesting, but certainly no business jackpot. Nothing more became of Knight's project. Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled with the wanderlust of young men seeking a way to delay the inevitable call of professional life. Seemingly on a whim, Knight scheduled an interview with a Japanese running shoe manufacturer, Tiger-a subsidiary of the Netsuke Company. Presenting himself as the representative of an American distributor interested in selling Tiger shoes to American runners, Knight told the businessmen of his interest in their product. Blue Ribbon Sports--the name Knight
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Thought of moments after being asked who he represented--was born. The Tiger executives liked what they heard and Knight placed his first order for Tigers soon thereafter. By 1964, Knight had sold $8,000 worth of Tigers and placed an order for more. Coach Bower man and Knight worked together, but ended up hiring a full-time salesman, Jeff Johnson. After cresting $1 million in sales and riding the wave of the success, Knight ET. Al. devised the Nike name and trademark Swoosh in 1971. By the late '70s, Blue Ribbon Sports officially became Nike and went from $10 million to $270 million in sales. Katz (1994) describes the success via Nike's placement within the matrix of the fitness revolution: 'the idea of exercise and game-playing ceased to be something the average American did for fun,' instead Americans turned to working out as a cultural signifier of status. Clearly, the circumstances surrounding the shift are not this simple; it is one of the aims of this project to discover other generators of popular attention to health. If Nike didn't start the fitness revolution, Knight says, "We were at least right there. And we sure rode it for one hell of a ride" (Katz, 66). The 80s and 90s would yield greater and greater profits as Nike began to assume the appearance of athletic juggernaut, rather than the underdog of old. "Advertising Age" named Nike the 1996 Marketer of the Year, citing the "ubiquitous swoosh...was more recognized and coveted by consumers than any other sports brand--arguably any brand" (Jensen, 12/96). That same year Nike's revenues were a staggering $6.74 billion. Expecting $8 billion sales in fiscal 1997, Nike has targeted $12 billion insales by the year 2000 and all from the back of a car. Few can question Nike's financial hegemony. But nearly $7 billion in revenues clearly begs the question, what sells these shoes? It is my assertion that Nike's power to sell comes from deep-rooted yearnings for cultural inclusiveness and individual athletic accomplishment. These seemingly paradoxical desires collide in consumers hearts and minds and produce the unyielding zeal for Nike shoes and apparel. Unfortunate effects of this zeal can be found in the rash of Nike apparel killings in 1991 and the profusion of Nike appeals to these disparate elements of Americans' personalities through an advertising philosophy that is, at once, simple and sublime. In addition, Nike's practices of top-level athletes promoting their products appeal to countless ages and creeds as a
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way to identify with and emulate their athletic heroes. These forces work powerfully upon the individual consumer, but one should not lose sight of the cultural context in which the individual moves.

1.3.3 Present Scenario of Nike

Profile of the CEO Phillip H. Knight, Chairman and Chief Executive Officer, is the co-founder of Nike, Inc. He has been the driving force behind our company's success since its inception in 1964 under the name Blue Ribbon Sports. Knight is 61 years of age and holds an undergraduate degree from the University of Oregon and an MBA from Stanford University. Knight practiced as a CPA and taught at Portland State University prior to founding the company known today as Nike. He has been an innovative visionary in the industry of athletic footwear and apparel. His efforts have helped to establish Nike as an industry leader in both national and international markets. Knight's managerial mode is one that is characterized by strategic planning. This mode is representative of an open-minded CEO, one willing to take calculated risks and make conservative decisions based on careful analysis of external and internal environments. Knight's decision-making style favors the participative approach. He is not hesitant to make unilateral decisions, but prefers to look to his trusted management team for their insight and ideas before choosing a course of action.

Profile of the Competitor

Reebok, in terms of their products, is not entirely different from Nike. Reebok is involved in the design and marketing of both athletic and non-athletic footwear and apparel, as well as other various fitness projects. Reeboks market share is a distant third in the footwear industry at 11.2% (compared to 30.4% and 15.5% for Nike and Adidas respectively). Reeboks financial position has been gradually slipping for a number of years. This is evident in their declining stock price, which has fallen by over 80 percent in the last four years. Reeboks financial woes are illustrated in their declining net sales. Reeboks net sales declined 9% during the first threequarters of fiscal year 1999. During that same period, net income declined 17%. Taking these and other factors into account leaves Reeboks current financial position, as a whole, looking bleak.
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Industry Defined
20,000 retail accounts throughout the U. S. using independent distributors and also has contracts with 110 other countries Also has agreements with Internet companies and subsidiaries Operates within the sports footwear and apparel market. Originally designing and producing running shoes, their portfolio has broadened to include a wide range of sports and leisure wear. This is all endorsed by top sporting personalities.

1.3.4 Vision and Mission Statement

Vision Statement At Nike, our vision is to remain the leader in our industry. We will continue to produce the quality products that we have provided in the past. Most importantly, we will continue to meet the ever-changing needs of our customers, through product innovation

Mission Statement Our mission at Nike is to be a company that surpasses all others in the athletic industry. We will maintain our position by providing quality footwear, apparel and equipment to institutions and individual consumers of all ages and lifestyles. We pledge to make our products easy available worldwide through the use of retail outlets, mail order and our company web site. Nikes management believes that our success lies in the hands of our teammates, customers, shareholders and the communities in which we operate. We vow to keep this in mind with the execution of every decision within our company.

1.3.5 Nike products and Targeted Customers

They design, develop, and market high quality active sports apparel, equipment, and accessory products Nike distributes one new shoe style every single day Nikes critical factors for success are maintaining current standards, closer working relationships, and retaining customer loyalty by guaranteed standard of product
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Product Trend:
Bovine skin was by far the most preferred leather material, followed by goat/kid/lamb/sheep skin and crocodile skin. Respondents overwhelmingly preferred the color black and, to a lesser extent, dark brown. For handbags/briefcases, popular colors included light brown, white and red. Consumer Segments with the Biggest Spending Power Male professionals, managers and executives are the segment with the biggest spending power for now and in the coming three years. Other major consumer segments include male office workers; sole proprietors/business owners; female office workers; and female professionals, managers and executives. The Competitiveness of Hong Kong Brands/Suppliers of Leather Consumer Goods. Most retailers consider Hong Kong brands to be either very competitive or quite competitive in both high-end and mid-range segments, but less competitive in the low-end segment. The competitiveness of Hong Kong brands mainly rests on their product style/design and quality, with most respondents picking those as the major reasons behind the attractiveness of Hong Kong brands in the high-end and mid-range segments respectively.

Product Profile:
Apart from delivering a pair of comfortable sports shoes Nike also provides a number of valueadded features with its products. The features that are a part of every Nike sports shoe are as follows.

High Performance Sports Shoes: Nike has patented the Air system and has made it into a regular feature in most of its models. Many models feature an air pocket in the shoe that reduces the weight of the shoe and reduces pressure on the heels. Besides the overall design and compactness of the shoes have made it a favorite of many professional athletes around the world.

Comfort: Nike shoes are renowned all over the world for the comfort they provide. Well padded and cushioned, they provide a tremendous level of comfort to the wearer and reduce the strain to his feet while playing.

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Lightweight: This attribute is in line with the two described above. A lightweight shoe provides greater mobility and eases the pressure on the feet of the wearer.

Durability: People purchasing a pair of shoes at such a high price often feel that they have made an investment. They would obviously want to see their shoes last a long time. To prove this point we draw the example of the authors of this marketing plan. All of us own a pair of Nikes and have been wearing them for well over two years a symbol of the durability of Nike shoes.

Style: Nikes designs are considered to be the most stylish in the industry and beat all others as far as looks are concerned. Attractively packaged, it is a delight to bring a pair home. Add to this the Swoosh the most recognizable symbol in sports and you have a product that would give the user a definite sense of pride. Nike shoes also come with a guarantee card that enables the owner to return it in case of manufacturing defects. However, owing to the fact that the company implements strict quality control measures, coming across a defective pair in a store are a rarity. The most recent additions to their line are the Nike 6.0 and Nike SB shoes, designed for skateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than their competitors'.[ Nike positions its products in such a way as to try to appeal to a "youthful....materialistic crowd". It is positioned as a premium performance brand.

1.4 Company profile of ADIDAS 1.4.1Introduction

Adidas AG is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok Sportswear Company, TaylorMade-adidas Golf Company, and Rockport. 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 sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike. 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 2008
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was listed at 10.799 billion and the 2007 figure was listed at 10.299 billion, or about US$15.6 billion. Adidas is on the move and always has been: It has had an adventurous history since it first grew out of a family business in Herzogenaurach, Germany in the 1920s. With the hostile separation of two brothers interests in the 1940s, nearly going bust in the 1980s and then executing two rescue operations, first by sending production offshore to Asia and then by reinventing itself into a design and marketing company, Adidas has riden the waves of change in the sports goods sector both up and down. Alongside its own brands, it owned the Saloman ski and sportswear brand for nearly a decade and now includes the Reebok, Taylormade Golf and Rockport brands in its stable.

1.4.2 History of the Company

A retail store in Tel Aviv, Israel: Adolf ("Adi") Dassler started to produce his own sports shoes in his mother's wash kitchen in Herzogenaurach, Bavaria, after his return from World War I. In 1924, his brother Rudolf (Rudi) Dassler joined the business which became Gebrder Dassler Schuhfabrik (Dassler Brothers Shoe Factory) and prospered. At the 1928 Olympics, Dassler equipped several athletes, laying the foundation for the international expansion of the company. During the 1936 Summer Olympics on Berlin, Dassler equipped quadruple gold medal winner Jesse Owens of the U.S. with his shoes. Late in World War II, the shoe factory shifted to production of the Panzerschreck antitank weapon. The brothers split up in 1947, with Rudi forming Puma, and Adi forming Adidas. The company formally registered as Adidas AG (with lower case lettering) on 18 August 1949. The phrase All Day I Dream about Soccer, although sometimes considered the origin of the Adidas name, was applied retroactively. The name is actually a portmanteau from "Adi" (a nickname for Adolf) and "Das" (from "Dassler").

The Tapie affair After a period of trouble following the death of Adolf Dassler's son Horst Dassler in 1987, the company was bought in 1989 by French industrialist Bernard Tapie, for 1.6 billion French francs (now 243.918 million), which Tapie borrowed. Tapie was at the
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time a famous specialist of rescuing bankrupt companies, an expertise on which he built his fortune. Tapie decided to move production offshore to Asia. He also hired Madonna for promotion. He sent, from Christchurch, New Zealand, a shoe sales representative, to Germany and met Adolf Dassler's descendants (Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few items to promote the company there. A pair of Adidas "Sambe" football trainers. In 1992, Tapie was unable to pay the interest from his loan. He mandated the Crdit Lyonnais bank to sell Adidas, and the bank subsequently converted the outstanding debt owed into equity of the enterprise, which was unusual as per the prevalent French banking practice. Apparently, the state-owned bank had tried to get Tapie out of dire financial straits as a personal favour to Tapie, reportedly because Tapie was Minister of Urban Affairs (ministre de la Ville) in the French government at the time. In February 1993, Credit Lyonnais sold Adidas to Robert Louis-Dreyfus, a friend of Bernard Tapie for a much higher amount of money than what Tapie owed, 4.485 billion (683.514 million) francs rather than 2.85 billion (434.479 million). Tapie later sued the bank, because he felt "spoiled" by the indirect sale. Robert Louis-Dreyfus became the new CEO of the company. He is also the president of the Olympique de Marseille football team, a team Tapie owned until 1993. Tapie filed for personal bankruptcy in 1994. He was the object of several lawsuits, notably related to match fixing at the soccer club. During 1997, he served 6 months of an 18 month prison sentence in La Sant prison in Paris. In 2005, French courts awarded Tapie135 million compensation (about 886 million francs).

Post-Tapie era In 1994, combined with FIFA Youth Group, SOS Children's Villages became the main beneficiary. In 1997, Adidas AG acquired the Salomon Group who specialized in ski wear, and its official corporate name was changed to Adidas-Salomon AG because with this acquisition Adidas also acquired the Taylormade Golf Company and Maxfli which allowed them to compete with Nike Golf.
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In 1998, Adidas sued the NCAA over their rules limiting the size and number of commercial logos on team uniforms and apparel. Adidas withdrew the suit, and the two groups established guidelines as to what three-stripe designs would be considered uses of the Adidas trademark.

In 2003, Adidas filed a lawsuit in a British court challenging Fitness World Trading's use of a two-stripe motif similar to Adidas's three stripes. The court ruled that despite the simplicity of the mark, Fitness Worlds use was infringing because the public could establish a link between that use and Adidas's mark.

In September 2004, top English fashion designer Stella McCartney launched a jointventure line with Adidas, establishing a long-term partnership with the corporation. This line is a sports performance collection for women called "Adidas by Stella McCartney", and it has been critically acclaimed.

Also in 2005, on 3 May, Adidas told the public that they sold their partner company Salomon Group for 485m to Amer Sports of Finland. In August 2005, Adidas declared its intention to buy British rival Reebok for $3.8 billion (US). This takeover was completed with partnership in January 2006 and meant that the company will have business sales closer to those of Nike in North America. The acquisition of Reebok will also allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the world. Adidas has corporate headquarters in Germany, and many other business locations around the world such as Hong Kong, Toronto, Taiwan, England, Japan, Australia and Spain. Mainly sold in the U.S., Adidas makes lots of assets from these countries and is expanding to more oversea countries.

On 11 April 2006, Adidas announced an 11-year deal to become the official NBA apparel provider. They will make NBA, NBDL, and WNBA jerseys and products as well as team-coloured versions of the "Superstar" basketball shoe. This deal (worth over $400 million) takes the place of the previous 10-year Reebok deal that was put in place in 2001.

1.4.3 Present Scenario

Things are now definitely on track and, if the current marketing slogan, Impossible is Nothing", is anything to go by, the company is brimming with confidence. This is not surprising when you
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consider that Adidas now consistently out-performs the rest of the sector and has enjoyed eight years of consecutive double digit net income growth. It is now the world's number two sports apparel manufacturer with total sales for 2007 of 10.3bn and profit growth of 9%. Walk along any high street and it is clear that wearing sports clothing is definitely a fashion statement, and possibly an indication of athletic prowess. Adidas recognized this trend early on and has developed high-performance sports lines in collaboration with the likes of Stella McCartney, Yohji Yamamoto, Porsche Design and Rolland Berry. That said, the company does not sacrifice its commitment to improving sporting performance and aims to launch at least one major new technology or technological evolution per year. Even more than its peers, Adidas has put performance at the heart of its product portfolio and invests specifically to support this. R&D projects involve collaborations with professional and amateur athletes including ZinedineZidane, Michael Ballack and Allyson Felix. In addition, Adidas works with clubs such as AC Milan and Bayern Munich to test and optimize products. Over recent years this has led to development of technologies such as Formotion, which supports the core adistar and Supernova families, as well as the next generation of the Response and BOUNCE running shoes. Alongside providing performance products, Adidas recognizes that consumers make purchase decisions based not only on brand but also on availability, convenience and breadth of product offering. As a result the company has been refining its distribution proposition, concentrating on expanding its own outlets or controlled space and improving retail relationships. There are now over 1000 Adidas stores around the world and, in the run up to the Beijing Olympics the company opened an average of two stores a month in China. By 2010, the aim is to generate at least 30% of the groups revenues through controlled space.

Corporate information
Current executive board

CEO Adidas-group: Herbert Hainer Finance Adidas-group: Robin J. Stalker CEO Adidas brand: Erich Stamminger Global Operations Adidas-group: Glenn S. Bennett

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Former Management

CEO (1993-2002): Robert Louis-Dreyfus. Criticism As with the majority of prolific brand-based transnationals, Adidas business practices/ethics and commitment to worker welfare have been scrutinized and often criticized.

SLOGAN "Impossible is Nothing" is the current mainstream marketing slogan for Adidas. This campaign was developed by 180/TBWA based in Amsterdam but also with significant work being done by TBWA/Chiat/Day in San Francisco - particularly for its basketball campaign "Believe In Five".

Adidas Originals: Refers to the line of casual clothes and new campaign launched by Adidas around the beginning of 1996, when Adidas separated the brand into 3 main groups, each with its own focus. Four videos have been released to date, including "Original Games", which shows a group of guys and girls playing modified Olympic type games in the streets; "Handbags For Feet", which journeys through the streets of Berlin with a girl named Amelie taking interesting photos; "The Story of AdiDassler", which tells the story of the man who started Adidas and "Sounds of The City", which shows how DJ Theo Parish collects sounds for his music.

1.4.4 Mission
Adidas' mission statement applies to both their online and offline companies. Their mission statement reads, "Our mission is to become the best sports brand in the world. To that end, we will never equate quantity with quality. Our founder AdiDassler was passionate about sports. For Adi, the athlete came first. He gave those on the field, the court and the track the unexpected and the little differences that made them more comfortable and improved performance. This is our legacy. This is what the brand stands for. This will never change."

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1.4.5 Products of Adidas

Running: Adidas currently manufactures several running shoes, including the adiStar Control 5, the adiStar Ride (the replacement for the adiStar Cushion 6), the Supernova Sequence (the replacement for the Supernova Control 10), and the Supernova Cushion 7 (which will soon be replaced by the Supernova Glide), among others. In addition, their performance apparel is widely used by runners. Adidas also uses kangaroo leather to make their more expensive shoes.

Football (soccer): One of the main focuses of Adidas is football kit and associated equipment. Adidas also provides apparel and equipment for all teams in Major League Soccer. Adidas remain a major company in the supply of team kits for international football teams. Current examples include Russia, France, Germany, Greece, Romania, Argentina, Spain, Mexico, Japan and Nigeria. The company has been an innovator in the area of footwear for the sport with notable examples including development of the Copa Mondialmoulded boot used for matches on firm dry pitches for almost forty years. The studded equivalent was named World Cup follow in celebration of the 1978 tournament won by Argentina, one of the nations it supplied at the time. Adidas became renowned for advancing the "Predator" boot design developed by ex-Liverpool and Australian international player Craig Johnston.

Tennis: 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. Adidas sponsors the following professional players: Marat Safin, DinaraSafina, Ana Ivanovi, Fernando Verdasco, Novak Djokovic, Gilles Simon, Marcos Baghdatis and doubles team Bob and Mike Bryan. Adidas tennis apparel contains the ClimaCool technology found in other athletic jerseys and shoes.

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Golf: In 1997, Adidas purchased TaylorMade. The image and focus of TaylorMade was redirected shortly after the acquisition to take over the driver market. The company succeeded in achieving this goal in late 2004 when it officially became the No. 1 driver in golf. On 14 October 2008, Adidas, through its subsidiary TaylorMade, acquired Ashworth for $72 million, assuming $46.3 million in debt.

Cricket: In the 1990s Adidas signed the former world No. 1 batsman Sachin Tendulkar and made shoes for him. He is still wearing Adidas shoes when he plays matches. In 2008, Adidas made their move into English cricket market by sponsoring English batting star Kevin Petersen after the cancellation of his lifetime deal with Woodworm, when they ran into financial difficulties. The following year they signed up fellow England player Ian Bell. Their products are available in the Incurza, Pellara and Libro ranges. Adidas also also sponsors the England Cricket Team and the Australian Cricket Team In 2008, in the first edition of the Indian premier league (IPL) it took up the sponsorship of two teams Mumbai Indians and Delhi Daredevils.

Basketball: Adidas has been a longtime basketball shoe manufacturer. They are most famous for the Superstar and Pro Model twins, affectionately known as "shelltoes" for their stylized hard rubber toe cap. These were made very popular in the 1980s Hip-Hop streetwear scene alongside Adidas' stripe-sided polyester suits. Adidas also sponsors players past and present like Kareem Abdul-Jabbar and Tracy McGrady, as well as Dwight Howard, Chauncey Billups.

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.

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MARKETING: Adidas has developed unique and dynamic marketing initiatives in traditional and emerging mediums. They are stalwarts of innovative, out-of-the-box campaigns that extend beyond their products to an entire philosophy, thinking, and way of life. Here are several campaigns that speak not only about Adidas products, but the lifestyle they create. Urban Art Guide--Adidas embodies rebellion, independence and creative expression, particularly in an urban setting. Their street-art locator application for Apple's iPhone, bolstered urban street artists exposure and branded the outfitter as a "for-the-people" company.

SPONSORSHIP: Adidas are the main sponsor and kit supplier of the highly successful New Zealand national rugby team, the All Blacks. Adidas also are the kit supplier to the Argentina national rugby team Los Pumas, to StadeFrancais and Munster. Adidas are the main sponsors and kit sponsors of the successful Australian Cricket Team and the England Cricket Team. They are also the main sponsors of the Indian cricketers Sachin Tendulkar and Virender Sehwag and English cricketers Kevin Pietersen and Ian Bell. Adidas are the main sponsors of Australian Domestic Cricket Competitions - Pura Cup, KFC Twenty20 Big Bash, Ford Ranger One Day Cup. They are sponsors of the Indian Premier League Teams Delhi Daredevils and Mumbai Indians. Adidas also sponsors the Gold Coast Titans and St George Illawarra Dragons rugby league clubs in the Australian National Rugby League (NRL) competition. Adidas is the longstanding kit provider to the Germany national football team, a sponsorship that began in 1954 and is contracted to continue until at least 2018. Adidas and Major League Soccer announced a 10-year sponsorship agreement in November 2004 to make Adidas the official athletic sponsor and licensed product supplier for the league, and to work together to create a developmental league for MLS. Adidas also sponsors events such as The London Marathon. For the 2008 Summer Olympics in Beijing, China, Adidas spent 70 million sponsoring the event amid criticisms.

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1.4.6 Five Performance Benefits

To be relevant to our target consumer as the performance brand, we have identified five consumer benefits which will form the basis of our innovation pipeline for the next five years. We believe that serving these benefits will keep us at the forefront of the industry, building brand image and allowing us to leverage our technologies and positioning seamlessly across categories. Faster: To help athletes be faster, we will focus on reducing product weight, making the lightest products on the market. The franchise will be built with the adiZero platform. Already prominent in 2010, this will be a key initiative for 2011 where we will introduce even lighter products in football, basketball and American football.

Stronger: With AdiPower, we intend to create a franchise to own power enhancement in sport. This platform will include products such as Predator in football, Barricade in tennis and Techfit apparel.

Smarter: Through interactive products, we will help athletes and consumers of all fitness levels to be, train and perform smarter. We work with the best athletes and coaches around the world. Through platforms such as miCoach, we will make this knowledge available to every consumer, helping them to define and work towards their individual goals.

Cooler: These products will be geared to help the athlete to always have the right temperature (cooler, warmer, wind protection, etc.). This will be served through the Clima franchise, which is already one of our best-known franchises around the world.

Natural: Natural motion is a major trend in our industry. Drawing on our long history, experience and understanding of the shape of the foot and movement of the body, we will create a new platform of products around natural motion over the next five years.

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