IDM City Campus #3 Course Work Banner Branch Course Title Assignment ID Full Name Student Instruction The

Course Work or Assignment is setting and conducting via the board of HND evaluation. The evaluation and grading will be conducted by the two persons. The lecturer or the tutor is the first person to evaluate the course work and assignment. Then second person is the member of board of evaluation. The answers and explanation for the assignment must be done by the student with his own work. If the student refers any kind of resources he must put the correct reference in wanted area. If the students work will be found as matching with another or senior students work the assignment will be rejected by the board of HND evaluation. So, Student must do his assignment in his next session. When the student uploads his course work he must obey the rules and regulation. Student can upload his course work only three times and if the student uploads his course work after the dead line, the system will indicate the late submission. If the student will submit the excuse form for the late submission with the acceptable reason student can get the full marks. After the course work submission, the conformation document will send to the student e mail address. Then student must submit that document with his hard copy. : Wellawete Student ID : HND in Business Management Semister Module : ASGREF/2011/25 Name : Sukkri Muhamed Muzan : WEL004118 : 2 : Marketing

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1.1Try to relate organization with the AMA, PHILIP KOTLER and CIM marketing definition (Identify core concept of marketing and differentiate with different organization scenario)
Adidas (Impossible is nothing) Vision: Be perceived as a leader. Mission: To be the best sports brand in the world. Marketing is management that process identifies and satisfies customers requirement profitability (CIM Definition) Satisfying the needs and wants by exchanging (Philip kotler) According to AMA Marketing is the activity set of institution and process of creating, planning, communicating, pricing and delivering of ideas, goods, services that satisfy individual and organizational goals. CIM Definition In further explaining this definition it has been interpreted deeper manner, it says that the marketing is the procedure of the management which includes achieving the organizational targets; the organizations should first recognize the needs and wants with the awareness of the competitors strategies and should earn the positive and healthy revenue through the customer satisfaction. The businesses must give the first priority to the customers requirement where it says that the customers are the king. According to the definition the company staffs should work hard and should provide them the best. It is a responsibility for the managers to identify, analyse, monitor, and plan how to provide the best to the customers. If an organization can run their business according to this with finding customer needs and wants and satisfying them, they can survive and succeed in the market.

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PHILIP KOTLERs Definition This definition explain in a different manner which says that the marketing is an administrative and societal way which fulfilling all the criteria of the customers (can be individual or group) expectation with the base of value. Simply to say the exchange and transaction customers will only turn the value to the other side if they fully satisfied by the fulfilled requirement. Here, this definition is highly matching with the current scenario because, only concerning about the profitability of the organization will not going to lead to achieve the target easily. Addition to that, the company must be able to find and evaluate the customers values and if that has been done by the organization, definitely the organization will gain the customer loyalty in the market. So it is all about the social approach which gives the preference to the social factors. Satisfying needs and wants through an exchange process,

AMA Definition According to AMA marketing it is how the process of creating goods, planning, communicating, pricing and delivering of ideas and goods that benefit the organization and its stake holders. The company should always think of creating innovative product than their competitors and pricing should be made as a reasonable one where the customer will be satisfied. It is all about satisfying the customers at a most appropriate way which benefit our organization and the society. ADIDAS with CIM definition According to CIM definition it talks about how to identify customer needs and wants and satisfy them at a profit. In looking into ADIDAS company according to their mission statement To be the best sports brand in the world ADIDAS produce the goods according to the requirement of the customers what their expectation which is in high quality providing to the customers at a profit.
Net sales for 2009 = 10381 million Net sales for 2010 = 11990 million
4712 million Net profit 2010 = 5730 million

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1.1.1. This diagram mentions the sales and the profit of ADIDAS for two years.

ADIDAS with Philip kotlers definition According to Philip kotler he says satisfying customer needs and wants through an exchange process, ADIDAS has created a geed brand image among the customers and there are variety of products in the brand name ADIDAS after producing the next will be the exchange process where selling it and gaining the profit through it. ADIDAS with AMA definition, According to the above definition the company ADIDAS it plays a major role in marketing it always tries to capture the market share by advertising their product with most famous sport players and other such as: WINGER NANI, LIONEL MESSI, SACHIN TENDULKAR, and LASITH MALINGA, it targets its customers by advertising, It always think of how to satisfy their customers in improving the products according to their requirement. The managers continuously try to improve the look, feel, quality and image of the product. Adidas has a wide range of products for men and woman Such as: Sport shoes, Perfume, Body spray, shower gel, watches, caps and etc it has a good selection and they create innovative product than their competitors to capture the market share. It always keen on satisfying the customer needs and wants according to their requirement at a profit.

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1.2. Briefly explain the elements of marketing concept, to a selected

organization
Organizations can be successful after they find the market what really customer wants and then produce the goods where it makes the customers satisfy than the competitors The marketing concepts are: Target market Customer needs and wants Coordinate marketing Profit through customer satisfaction Target market Target market means a selected set of market people who is satisfied the best is known as target market the targeting people in ADIDAS is in between 10 to 30 years old. In targeting the market ADIDAS spend some time to search the market what they really want. ADIDAS advertise, do plenty of sales promotion and so on ADIDAS is concern on producing new

products it will look into the target market who will be using the new product and launch it according to the requirement of the customers. Range of products Perfumes Clothing (bottoms, jersey, socks, bands etc) Shoes Football boots Jeans Sports jackets tshirts 2.2bn 1.9 bn 1.2bn 1.7bn 0.9 bn
Men and women preferring best designer and quality footwear. Professional footballers around the globe. Urban youth.

Turnover () 0.9 bn 1.8bn

Target market
Men/ women looking for freshness and fragrance. Celebrities, trainers and sports people

Professional sport people. Market looking quality casuals.

Figure 1.2.1 describes the target market of adidas

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Customer needs and wants Every human being are having needs to satisfy the needs you have to find what customers wants, E.g.; A man is in hunger he need something to eat but his want is to eat a pizza, So we have to find customer needs and wants to satisfy them. In finding customer needs and wants ADIDAS always does Market and Customer research, and it always expecting for feedbacks from the customers. In developing a new product ADIDAS always do market and customer research it is very important it describes the needs, wants, complaints and problems of the Product. After the research process it concentrate on the product what customer wants, their thoughts, feels, and according to that It develop and improve the product ADIDAS always keep on increasing innovative, variety, quality, features, and packaging which gives a good value to the product After concerning about the products next it thinks about the production where you should produce to satisfy the target market people. It should be available in the market where it is convenient to customers and to purchase at a reasonable price. Always the production managers will be concern on increasing the output of the product which brings down the price per unit. It helps the company to distribute to the market at a reasonable price which ADIDAS does to satisfy their customers needs and wants. Coordinate marketing This is the type of marketing where it is also concern on satisfying the customer where in the entire department they discuss how to satisfy the customer needs and wants in this point of view ADIDAS has a group for coordinate marketing where they identify customer needs and wants and sometimes the marketing manager may want a change in the product but production manager may against it since it raises the cost of production so coordination with each department is very important and you should always think of how to satisfy customer needs and wants and work according to the requirement. Profit through customer satisfaction After selling the product and when customers are satisfied what we get is profit through customer satisfaction so the managers always make decisions keeping the profit in mind. There are many ways to keep the customers satisfied providing them the best than what they

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Really want. According to ADIDAS they mostly do societal marketing to satisfy customer such as: avoiding under age employees, Supporting construction of sports ground, It produce cheaper goods for selected country and it use recyclable materials for packing it products which keeps a good image on the brand.

Financial Highlights 2010

01 Financial Highlights (IFRS)

2010 Operating Highlights ( in millions) Net sales EBITDA Operating profit Net income attributable to shareholders 11,990 1,159 894 567

2009 10,381 780 508 245

Change 15.5% 48.6% 76.0% 131.1%

Key Ratios (%) Gross margin 47.8% Operating expenses as a percentage of net sales 42.1% Operating margin 7.5% Effective tax rate 29.5% Net income attributable to shareholders as a percentage of net sales 4.7% Operating working capital as a percentage of net sales1) 20.8% Equity ratio 43.5% Net borrowings/EBITDA 0.2 Financial leverage 4.8% Return on equity 12.3% Balance Sheet and Cash Flow

45.4% 42.3% 4.9% 31.5%

2.4pp (0.2pp) 2.6pp (2.0pp)

2.4% 24.3% 42.5% 1.2 24.3% 6.5%

2.4pp (3.5pp) 1.0pp (19.5pp) 5.8pp

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Data ( in millions) Total assets 10,618 Inventories 2,119 Receivables and other current assets 2,324 Working capital 1,972 Net borrowings 221 Shareholders' equity 4,616 Capital expenditure 269 Net cash generated from operating activities 894 Per Share of Common Stock () Basic earnings Diluted earnings Operating cash flow Dividend Share price at year-end Other (at year-end) Number of employees Number of shares outstanding Average number of shares

8,875 1,471 2,038 1,649 917 3,771 240 1,198

19.6% 44.1% 14.0% 19.6% (75.9%) 22.4% 11.8% (25.3%)

2.71 2.71 4.28 0.802) 48.89

1.25 1.22 6.11 0.35 37.77

116.8% 121.8% (30.0%) 128.6% 29.4%

42,541 39,596 7.4% 209,216,186 209,216,186 0.0% 209,216,186 196,220,166 6.6%

Figure 1.2.2 Mentions the annual report to show the profit through customer satisfaction

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1.3. Briefly explain the cost and benefits of marketing approach in your

point of view to a selected organization

In concerning of marketing a product first and foremost you should conduct a marketing cost analysis and research what customer needs and wants according to that you should market the product. It cost a lot of money for surveys and market research it is worth it even though its expensive you can get fresh ideas from the market to create the product. The benefit on investing huge money to a product is to gain a profit through selling the product to customer should be aware of it so advertising, sales promotion and etc is very important. Adidas spends a lot on advertising its product; its a way of increasing the sales you should place the advertisement at a high popular area where they can see, hear such as: Movies, Radios, Television and etc where it target all Radio listeners, TV and movie viewers. I would select ADIDAS shower gel to approach the market ADIDAS shower gel was first marketed in 2007 in china Guangzhou, it was given to the Procter and gamble Hong Kong to market the product in marketing the product approximately ADIDAS company fixed a budget sum of HK $ 1.5 million to complete the project. ADIDAS shower gel was marketed all around the china market first to monitor how the product is moving in the market In creating the product there were many purpose of achieving goals, profit through sales, Volume, image and customer satisfaction After producing the product ADIDAS always was doing market research to identify the customer needs and wants and to create many verities than the competitors Adidas does regular market research to provide best to the customers it has good benefits such as: Profit, Customer loyalty, long term goals, reputation, and company image increases. In marketing the shower gel ADIDAS did a huge marketing campaign in 2007 in china its budget to market the shower gel was only for six month period it cost HK $ 1.5 million and it spent HK $ 750,000, in market research it spent HK $ 375,000 advertising and promotion and HK $ 375,000 to Maintenance and management of media relationship. According to today ADIDAS spend much on advertising for E-marketing compare to 4 to 5 years before it were spending money on advertising in TV and print medias but now it reduced to advertise their product on TV and print media now it mostly spends on E-marketing, since its target

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market is in between 14 to 19years most of the people in the world who use internet is in between that age and they mostly spend their time on social network sites so it targets social network to market its shower gel, it advertise on face book, Hi5,twitter, My space and etc.. all other famous social network where the product will be reached around the world up to today only on face book there are more than 20,55,723 fans for reference visit
http://www.facebook.com/adidas only on face book most of the fans are in between 10 to

30years its a strategic planning where it use to market the product. After the marketing activities there was good feedbacks by the customers then after they were finding customer needs and created more verities to them after words the product growth were moving fast so they market it around the world after marketing the product in social networks its sales increased so ADIDAS Shower gel today is available around the world where ever you are you can buy it. ADIDAS invested only HK $ 1.5 million to market the product and its benefit in return after 3 month was HK $ 18million around the world.

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2.1. Identify the macro and micro factors that influence the organization in

marketing activities and decision making

Marketers maintain a lot of interaction with in and out of the organization the factors that influence the organization is Micro factors and Macro factors Micro Factors Micro factors can be defined as the problems that occur internal of the organization there are many such as: Customers: They always cannot stick into one product or design easily; customers wants and needs change very frequently. Therefore when a new product is developed they are able to stay with us without changing into a competitors product so always you should create something new for them if not you cannot survive in the market.

Supplier: Suppliers always will not like a company staying in the same position and not purchasing anything new from them, just impressed with the same old type of raw-material they purchase make the supplier feel bored and in the meantime make less profits to them

Employees: They also demand for increase in their salaries where as their living cost and lifestyles keep changing. They wont be getting anything as they expect if the same work is done over and over also their ideas and co-operation is very important for a firm to succeed so you should also motivate them to get the best out of them.

Competitor: Competitor holding a strong brand or product is a threat. Since its very difficult for a new product to enter the market and compete with an already leader in the market. Strong advertising methods and creative promotions should be done inorder to compete Ex: Coca-Cola And the all new KIK Cola in the Sri-Lankan market.

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Media: Media makes an attention to the customers when Adidas is launching a product when they advertise the product in media the customers can be aware of the product.

CUSTOMERS

EMPLOYEES

SUPPLIERS

COMPANY

COMPETITORS

SHAREHOLDERS

MEDIA

The Diagram 2.1.1. Mentions about the micro factors of an organization

SWOT Analysis of Adidas

Swot analysis means it is a strategic planning which is done by business organizations to evaluate the Strength, weaknesses, Opportunities, and the threats involved in the business or a particular project is known as SWOT analysis.

The Swot analysis of Adidas is:

Strength Adidas sponsor ship on matches such as football and cricket. There are more than 39,600 employees working in Adidas around the world. Many variety of products such as: T-shirts, watches, perfumes, and etc

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 Adidas and Reebok together they are interconnected and doing the business. Quality and conformability of the products where it makes to the response of customers Customer care service is very kind and taking care on customers when the call for feedbacks, and specially on e-marketing

Weaknesses E-commerce is limited in U.S.A. Online customer service is poor Poor advertisement agencies Customer service is poor

Opportunities Adidas and the Reebok Company is interconnected It increases the demand for goods because the product is available online New technology and innovate which makes standard products

Threats Fake brand of Adidas are available in the market because original is expensive and cannot afford by everyone. Nike is the competitor of Adidas, Nike leads in footwear than Adidas. Nike spends more on advertisement than Adidas. Competitors increasing day by day.

Macro Environmental factors The Macro environment includes all factors that influence the organization but its outside the organization where they cannot control. The marketer needs to compensate on the culture, political, and economical factors.

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PESTEL factors of Adidas

PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal It describes the Macro environment of an organization where they do strategic planning.

The PESTEL analysis of Adidas is:

Political
Employees standard and HR system should be maintained well. Health and safety of employees is important to the company. Employees rights should be followed.

Economical
Adidas decreases unemployment in countries by providing jobs Adidas has given manufacturing contract to many countries to manufacture such as: shoes, T-shirts, etc which reduce cost. Labour chargers are cheap in china compare to German, U.S.A., and France this is the reason where most of the factories are located in Asian region.

Social
Adidas always concern on target market such as: age, sex, religion, lifestyle and so on. In U.K. people who go to shop and purchase is less because they have no time so Adidas should recognize the fact and sell the products online. Adidas should identify which season they can sell more for E.g.: A person would buy 1 or 2 pair of football boots per season taking that into consideration Adidas should advertise the product on the football season where it will increase sales. In U.K. there are many people living under different religion such as: Muslims, Christian, Tamils, Jews and etc so Adidas should cater all these religion people.

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The place of selling the product is very important in taking an example In U.K. there are many large cities such as: Manchester, Birmingham and etc There are many potential customers to Adidas.

Technological
Adidas should use the latest technology equipment to cut down its cost of production, to reduce the labours in work and which also speed up the production if Adidas dint use latest technology the competitor will grab the market share. Adidas should make sure that they update their webpage because most of the people buy products via online nowadays technology places a major role in marketing. Adidas should concern and use the latest technology and provide the customer the best than the competitors.

Environmental
Adidas raw materials to produce a football boots is taken from animals so it should concern on reducing animal skin to produce. Most of the Adidas production plant is in China, Vietnam, Indonesia, and etc which reduces the cost of a product, because the labour charges are cheap in those countries this cause to people not to buy Adidas products since the produce under the cheap countries with low quality this is not good for Adidas because it get publicity and people will stop buying Adidas products.

Legal Adidas should concern on the legality that has been linked in sport wear, Adidas would be fined if they didnt follow the laws and the legality such as: Advertisement standard, Radio Authority, sales and supply act and so on.

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2.2. Segmentation of two products in different markets

Marketing Segmenting Marketing segmentation is about dividing the market into distinct group of buyer with different needs, Characteristics, or behaviour. According to the customers requirement the company will produce the good, In the market there are different kind of people every single of them have different wants every person differs from each according to this they divide the market into different segmentation according to the buyers wants in order to satisfy each and every person in the market. When segmenting the market there is four different segmentation to be considered they are: Geographic Variable Demographic Variable Psychographic Variable Behavioural Variable Geographic Variable Geographic variables means collecting and analysing information to see where the product are being selling the most to increase sales and advertising there. This includes: Region, size of the area, population, and climate. Demographic variable Demographic variable is dividing the groups according to: Age, sex, family gender, Income, education, status, race, generation etc. Psychographic variable Psychographic variable means divided in to groups according to their opinions, beliefs, thoughts, values and interest.

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It includes: Social class Life style Personality Behavioural Variable Behavioural variable means this is about the consumer buying habits towards the product this includes: Reediness to buy Loyalty towards the brand User status Occasions Segmentation variables of Adidas body spray Geographic variable Adidas mostly consider on the geographic variable before launching the product they concern on Region where to launch the product, the population in that area and so on. The ADIDAS body spray was first marketed in INDIA, U.A.E., U.S.A, and etc Demographic Variable Demographic variable which ADIDAS is mainly concern on the Age, sex, Income and Status. ADIDAS consider on these factors because before launching the product it should know what kind of customers will be consuming the product. The body spray is mainly targeted for college students from the age of 18 to 24. This body spray is targeted for upper class and middle class people its price in SRILANKA is Rs.525/=. This cannot be affordable by lower class. This will not affect the religion or neither language etc

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Psychographic Variable Psychographic Variable consider on buyers behaviour most of the lower class people doesnt know about body spray and they also doesnt use it because its not affordable for them, So it is mainly targeted to upper and middle class people where it is easy and convenient than roll on deodorant. Behavioural Variable Behavioural variable consider on the customers behaviour most of the customer for the body spray will know about the brand and the product quality. They will be waiting for new product varieties and they get loyalty towards the product Segmentation variable for ADIDAS Y-3 shoe Geographic variable The ADIDAS Y-3 football boot is marketed first in U.K., U.S.A, Canada, Swiss eland, South Africa and etc. because most of the population who play football are in that region because they are much interest on football than any other sports. Demographic Variable Adidas is always concern on Age, Sex, Income, and Status before launching the product Adidas consist of age and sex because size of the shoe will be available for young people, youth and adults most of the males only play football so it is mainly targeted on Males. Adidas Y-3 consumers income level should be in between 50,000 to 200,000 if it is only it will be affordable to buy. Its target group is Upper and middle class people because the minimum price of a ADIDAS Y-3 football boot is 150 so it cannot afford by lower class people.

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Psychographic Variable Psychographic concern on the buying behaviour of customers the customer for the ADIDAS Y-3 is mostly will be upper class and lower class because the starting price of a Boot is 150 so it is not affordable by lower class. It is targeted mostly for Luxury sport wear and people from lower class will not know about the product whereas Upper and middle class people will know how far its benefit on paying 150 for a football boot. Behavioural Variables This is about the Buying habits of customers in looking into the ADIDAS Y-3 football boots most of the people who buy Y-3 boots are football professionals and other playing crowd. ADIDAS Y-3 is so expensive because its high quality and most of them buy it because they know how good the shoe is. When they need a football Boot most of them want ADIDAS Y3 football boot because its in High Quality and has a good grip where it shows the customer loyalty among the product.

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2.3. How Buyers behaviour will affect the organizations marketing activities
Customer buyer behaviour is very important in an organization it helps the organization to identify how customers think, feel, and select between different situations The major characteristics that effect consumer buyer behaviour is: 1) Cultural Factors 2) Social Factors 3) Personal Factors 4) Psychological Factors Cultural Factors This is the largest factor of desire and thus behaviour this can be according to buyers culture, which country they are from and which religion they are. For e.g.: ADIDAS shoes some are made out of Pig sole where Muslims doesnt consume those shoes because its their cultural issue. Culture also refers to the status, income, occupation, wealth and etc Each and every customer defers some will give more preference for a ADIDAS shoe some for ADIDAS body spray according to the cultural factors it differs. Social Factors Social Factors include the culture, Roles and status by taking reference where as a group it will be considered on family, friends, college, and schools etc. This will also influence the buyer behaviour according to their family background and college style they try to adapt to their culture when they are with groups according to the new trends. So this will make a change in the consumer behaviour. Personal factors The Personal factor is according to the buyers behaviour such as: Age, lifestyle, Personality, Occupation and etc In this personal factor the customer will look into his/ her status, prestigious and some prefer for unique products so every customer differs from each other.

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Before buying a product customer will consider on his/her economic situation whether he/she is affordable on buying the product

Psychological Factor This factor Includes motivation, Perception, learnings, beliefs and etc In this psychological factor the marketer should talk to the customers mind where it will motivate them to buy the product. ADIDAS has a good brand image and customers has beliefs that it is in a good quality and will last for a long period of time this makes ADIDAS good will among the product and the customer loyalty among it.

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3.1. Briefly explain the different products and services then explain how they satisfy customers and achieve organizational goals
ADIDAS has many varieties of product such as: Footwear Adidas has taken its place as one of the superior rank of sports and fashion world since 1920, delivering most advanced technologies and best quality in athletic footwear. The main aim is to design shoes that work with the foot, not against it, to make it easier for you to reach your maximum level of performance and ease. Apparel Apparel is not one of the main trades of Adidas though it also is specialized in manufacturing quality and fashionable apparels to its market. As usual their apparels are also very well known for its quality and durability. People have great demand for Adidas apparels as a very good sportswear also as a fashionable piece of clothing. Hardware such as bags and balls Adidas have a variety of hardwares such as bags, balls, golf sticks, hats, socks, watches, etc., they are provided to you with the same quality which you expect from Adidas. Different quality and designs are of different price ranges in the market, where as different people of different stages are affordable for a branded Adidas gear. Accessories Their accessories vary such as caps, hand gloves, belts, elbow sleeves, socks, watches, sunglasses, balls, etc. Also Adidas has a brand range of perfumes, deodorants, aftershaves, and lotions. Which are very well known for its brand, also meant to be a quality and prestigious sportswear?

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In explaining about the product would take 2 products to compare and show the benefits to the customers as well as the organization in explaining the this we should concern about the 7ps of marketing mix Product Price Place Promotions Physical environment Process People

Product ADIDAS Y-3 football boot is made for the best satisfaction of the football players which is so comfortable than the other boots. The Y-3 includes all the latest technology with the latest features in it to maximally satisfy its customers.

Features of Y-3: Its light in weight where easy to run while playing. Its cushioned inside the boot which makes more comfortable and most of them prefer to. Flexibility Suitable only for nature surface. It is made out of micro fiber

Price The price of the ADIDAS Y-3 boot will be 150; according to the world today most of the people who really want comfort ability and flexibility will not look into the price so customers prefer to pay for the quality. Place ADIDAS Y-3 boot is available in every country since ADIDAS showrooms also available worldwide if it is not available in the specific country simply buy via internet visit www.shopadidas.com you can through this it will be more convenient.

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Promotion ADIDAS advertise and do many promotional activities they advertise in media, papers, magazines, websites, and etc Adidas mainly promote their product via Internet.

Physical environment ADIDAS main concern about its environment too it makes its packaging disposal which will not make the environment dirt. It always concern on providing the best comfort to its customers if you are a customer of ADIDAS you would have felt the comfort if not try once and feel it.

Process ADIDAS procedure about the Y-3 football boot after manufacture they will send it to Q.C. where they check the quality to ensure the requirements are met. To look into that there are many process firstly the relevant person will wear the pair of boot and stand in the PAD which will scan the boot and if any errors it will be appearing after that the consultant will look into and make the faults and then send down to trailing after that ADIDAS invites the customers to come test and buy the Y-3 boot.

People ADIDAS is having a good set of employees who really work hard according to achieve the organizational goals: The managers are concern on the organization goals and motivates the employees towards the goal which will increase the productivity. ADIDAS provides best solution to its customers when they call or email on any inquires or complaints immediately action will be taken. It is how ADIDAS has built up its brand image among its customers.

In below to explain about the product briefly will be taking one product to show the customer satisfaction and the achievement of organization goals would take the ADIDAS Y-3 boot As mentioned previously this is a pair of boots specially produced to play football and is designed in such way that the grip is kept while handling the ball, and also many sports people suffer from losing their foot arch and therefore the Y-3 has a marvellous arch support along with a strong toe cap to keep your toe safe while hard shots.

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ADIDAS Y-3 is made out of leather and it has 4 attractive colours where it gives a rich look to the shoe and also it has an Impressive packaging has been done without a usual cardboard box, this shoe will come in a nice mini-suitcase, since we want the customers to feel that this shoe worth its price. The Y-3 brand ambassadors are famous FIFA players such as: David Beckham, Nani, kaka etc. ADIDAS Y-3 mostly target professional football players so most of them watch FIFA matches while the match goes the brand get promotes where it leads customers to consume the product. Y-3 is available from a size range of 7 to 14 where it shows that it will fit to a person of more than 18 years old, it also has a warranty period of 1 year because the initial cost is high so where it motivates the customers to buy the Y-3 boot. Since this is specially designed for football its main target market will be professional who play football and other footballers.

. Figure 3.1.1 shows the Y-3 football boot

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The figure 3.1.2 mentions about the ADIDAS BCG matrix

BCG matrix is the developer of a portfolio tool which helps the managers to organize and work towards the strategy and identify the market share of the business SBU Strategic business unit is to identify the BCG; first and foremost you should see the strategic business units to organize and marketing its own product SBU can be categorized into 4: Stars: SBUs that are stars having high share in the market and a high growth in the market and they have enough of money to invest in the business. Cash cows: SBUs that are cash cows it has a large share in the market but the product growth is slow they have enough of money but the market is not growing.

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 Question marks: SBUs that are question marks having a small share in the market but market growth is high.

Dogs: SBUs that are dogs they have a small share in the market of a low growth market.

IN the BCG matrix ADIDAS Company is in the stars because they have high market share towards the Y-3 football boot and also the Y-3 market is also growing so ADIDAS is in the Stars.

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3.2. The distribution channel of ADIDAS

The distribution of the product will be done directly through the Adidas Showrooms available worldwide, through retailers who already sell Adidas as Agents and Wholesalers who supply our products to the retailers and through franchised business. Also through our websites and other online shopping sites such as: EBay, Yahoo and so on we sell our product

MANUFACTURER

MANUFACTURER

MANUFACTURER

ADIDAS SHOWROOM

RETAIL AGENTS (HAMEEDIAS) CUSTOMERS

ONLINE PURCHASE

CUSTOMERS

CUSTOMERS

Figure 3.2.1 Mentions about the distribution chain The above figure clearly gives an Idea about the distribution channel of ADIDAS when taking the distribution in SRILANKA the intermediate involve is HAMEEDIA they are the retail agent in SRILANKA who sells ADIDAS product and also ADIDAS is having 3 to 4 showrooms in SRILANKA.

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3.3 ADIDAS Pricing

In fixing the price you should always consider on two main things: Internal factors External factors Internal factors is the factor which effect within the organization ADIDAS marketers should be in control on the internal factors such as: Marketing mix strategy the final price decided to fix, Marketing objectives the maximizing profit, quick cash flow and etc When we fix a price you should fix in a perfect and a suitable price for the product if not it will be a problem, where the customers always compare the cost against the product so when fixing a price you should consider in all the factors. External factors are which effect outside the organization these factors are: Nature of market and demand Competitors behaviour Other environmental elements In this factor you should concern a lot because this is the external factors which the competitors and other product play in the market so in this case you should mainly concern on ADIDASs Y-3 boot the pricing method which is used is premium pricing to show the superiority and the differentiation of the boot compare to others. In fixing the price for the ADIDAS Y-3 football boot the price of the Y-3 will be relatively high, since it has many extras added in to it. It shows the consumer the value of it while talking about the unique features it has been equipped with many extra valuable things; however it will keep adding value and prestige throughout in the game. In the meantime Adidas do not charge unfair prices for their products also they do not gain less profits, from all perspectives Adidas products is always worth for money and a main factor affecting the price of the Y-3 will be the product life cycle, since it is developed mainly for football and launched during the season, its life cycle will last for a less period and therefore Adidas will

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Have to cover up the developing cost of the product whereas the product will get fairly expensive so the price which will be marketed at 150.

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3.4. What are the promotional activities done to achieve the target of the Organization
Promotion Promotion plays a heavy role in a products life cycle; anyhow the Y-3 will be promoted along with the Germany football team as the brand ambassadors and media advertisements and also hoardings will be another way to promote the product, since the product has a very short life cycle being a football shoe; it has to reach its profits expected from Adidas. In the earlier days ADIDAS were promoting its product mainly in Medias such as: T.V., Radio, Leaflets and etc The marketers have found that it doesnt reach to the target market and now they have followed the latest method of promoting the product. In the 21st century promotion is very important to a product to motivate the customer towards it, According to this ADIDAS do many promotional activities it places its advertisement on Magazines, Bill boards, Banners, Internet and etc. this makes awareness to th e customers about new products in using advertisement in television they have reduced. According to the Y-3 boot its target market is in between 18-30 where it targets the football players, targeting this sector in todays world the best way of marketing a product is via internet. Today most of the people in the world when they get spare time they surf internet in that 90% of the people use social network sites such as: Facebook, Twitter, MySpace, Hi5 and etc The marketers have found the best place to promote the ADIDAS Y-3 is on the internet where ADIDAS is already doing it. Since its about a football boot the brand ADIDAS Y-3 football boot is promoted through a famous football player it is David Beckham.

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TASK 4 Two different marketing segments that Adidas can operate and recommend marketing mix for the segment
Adidas is focusing on target market; when it markets a product it mainly consider on demographic and physiographic segmentations; where demographic segment before it markets it identify the consumer groups in: age, sex, education, race, religion, and occupation. And in Physiographic it divides the market into different levels as: Lower class, middle class, and upper class to identify their customers, Where Adidas has planned to market a new product for a different segmentation so it needs to identify the consumers. Adidas has identified that there are more consumers who wants ADIDAS Y-3 football boot in the age between 10 16 who play football so it has identified; in order to increase its sales ADIDAS has planned to market Y-3 boot for the age in between 13 17 at an economical rate where its affordable for middle-class since it has plan to market it at affordable to consumers The segmentation of Adidas Y-3 boot for above 18 its segmented on considering demographic segment such as: age, gender, occupation, race, education and etc its available in all countries at Adidas outlets whereas the other boot which is marketed for inbetween 13 17 has been considered as psychographic segment where its considered on upper class, lower, class, and middle class, in considering all the factor it has marketed at an economical price where its affordable to purchase the product. After the segmentation Adidas should consider on the marketing mix its also called as the 4ps. Product Price Place Promotion 85 where it is

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Product The ADIDAS Y-3 for teens has added more value to the football boot than the other which was marketed to adults. ADIDAS creates a good quality product to its customers. The new ADIDAS football boot which is going to be marketed on the end of December 2011 has more features than the ADULTS boot because its specially targeted to teens which should be created more comfortable for them. It has new features such as: Its well packed Its more durability than the ADULTS boot Its designed to increase friction between the boot and the ball Its more comfortable than the other because its cushioned inside

Price In pricing ADIDAS football boot it has set a penetration price for the teens boot which is more convenient to the customers; to purchase since its a boot for teens so it will be marketed at an economical price where they can purchase it. Place The availability of product is as same as the other ADIDAS products which will be distributed via the same distribution channel it will be available all over the world in ADIDAS outlets. Promotion In promoting the boot ADIDAS plays a major role they promote the boot via many online sites such as: Facebook, twitter, Hi5, MySpace and etc and where they also have a famous football player JADEN SMITH to promote the brand; where most of the teens are fans of JADEN SMITH when he wore the shoes in matches they will watch and they too will buy the boot where it increase sales.

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4.2. Explain the different between marketing products and services rather than consumers
A product is something which is tangible where as a service is intangible; in marketing a product and service, a product is much easier than the service because after you market and sell a product there is something tangible to be seen by the customer for his/her satisfaction but in services he/she cannot because its intangible. Its more difficult to understand the customer needs and wants you should provide services to your customers needs and wants. When marketing a product you should identify who are your customers? What they want? And when they want it? Anyone can purchase your product if they are able to purchase whereas with a service it is difficult to identify the customers because they think more times than buying a product because service because it can be used overtime so in selecting a service they will need more time to come to an idea. In marketing a product you no need to consider on each and every person, because if you are selling a product you should only consider on the demographic factors and physiographic factors; where as in service you should need to find who are the customers and you should maintain a good relationship with them and provide a best service in order to keep the customers with you, in service you should always try to increase the relationship When you market a product you need to calculate and fix an amount for the product, instead in service you have to negotiate the marketing cost, its difficult to come up with a price for the service.

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4.3. Evaluate domestic and international marketing activities and differentiate both
Marketing is the efficient and effective management and utilization of a companys resources to meet or exceed customers demands and companys target. It involves selling products of company to satisfy customer needs; this includes planning, pricing, promoting, and distributing company products in order to satisfy customers. This both marketing are same when it comes to fundamental principle of marketing. Domestic marketing Domestic marketing is selling company products within the local market, where it only deals with one set of competition and economic issues which make it more convenient to do, In domestic marketing there will be no any barriers in language, obtaining information and data about customers, its easy to develop marketing strategies that are more effective and efficient. In this marketing risk is lesser compare to international marketing, it need less financial resources; all goods are being produced keeping in mind only of local customers. International marketing International marketing is the promotion and sale of a companys product in overseas market in international marketing you need more financial resources, before marketing the product the company should know about the company laws, policies, and so on. International marketing needs more time and effort its also risky compare to domestic marketing and you need to commit more time to succeed in an international market. Difference between domestic marketing and international marketing Domestic marketing is the production, promotion distribution and sale of products in a local market where international marketing is in a global market. Domestic marketing is easy and less risky to conduct whereas International marketing is more risky and more complex. Domestic marketing needs only lesser financial resources where international marketing requires huge finance.

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 Domestic marketing deals with single market where as international marketing deals with several countries and different markets Domestic marketing with only one set of customers; where international marketing deals with different type of consumers with different tastes.

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Reference
http://www.consumerpsychologist.com/ http://www.oppapers.com/essays/Marketing-Segmentation-Of-Adidas/711825 http://www.imagesfashion.com/content/adidas-deo-in-new-avatar-997.aspx http://www.da-group.co.uk/index.php?option=com_content&view=article&id=31%3Amicro-andmacro-environments&catid=2%3Amarketing-lectures&Itemid=3

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