TERM PAPER

MARKETING STRATEGIES 0F
ADIDAS
(A CASE 0F N.C.R)
Submitted By
AKASH TRIPATHI
A3104613151
B.C0M (H0NS)

In Partial Fulfillment 0f the Requirements f0r the Degree 0f

Bachel0r 0f C0mmerce

AMITY C0LLEGE 0F C0MMERCE & FINANCE

AMITY UNIVERSITY UTTAR PRADESH

ACKN0WLEDGEMENT
I wish t0 express my heartfelt appreciati0n t0 many wh0 have c0ntributed t0
this study. I w0uld like t0 thank t0 my Faculty Guide Mr. Adarsh Ar0ra,
ACCF, Amity University, N0ida f0r his valuable guidance.
I wish t0 c0nvey my heartfelt thanks t0 all my friends f0r their enc0uragement
and m0ral supp0rt during the c0urse 0f my pr0ject w0rk. The inspirati0n
behind successful c0mpleti0n 0f my pr0ject w0rk is their endurance, everlasting
str0ng supp0rt and endless prayers.
Lastly I express my thanks t0 all th0se wh0 helped me directly 0r indirectly
f0r the successful c0mpleti0n 0f this pr0ject.

AKASH TRIPATHI

PREFACE
The success 0f any business entity s0lely depends 0n h0w effectively
d0es it utilizes its 0ptimum res0urces and h0w s00n d0es it make
arrangements f0r the rem0val 0f the cust0mers grievances. M0re0ver,
the c0mpany sh0uld always be ready t0 make necessary changes
acc0rding t0 the requirement in 0rder t0 attract m0re cust0mers s0 as
t0 maintain a substantial gr0wth in the

market. The t0pic given t0 me

was:

MARKETING STRATEGIES 0F ADIDAS

I have tried t0 put my best eff0rts t0 c0mplete this task 0n the basis
0f skill that I have achieved during my studies in the institute.
I have tried t0 put my maximum eff0rt t0 get the accurate statistical
data. If there is any err0r 0r any mistake in c0llecting the data, please
ign0re it.

TABLE 0F C0NTENTS

INTR0DUCTI0N T0 THE STUDY

0BJECTIVES 0F THE STUDY

RESEARCH METH0D0L0GY

C0MPANY PR0FILE

FINDING AND ANALYSIS

SW0T ANALYSIS

SALES ANALYSIS

C0MPETITIVE BRAND & C0MPARATIVE ANALYSIS

LIMITATI0NS

REC0MMENDATI0NS & SUGGESTI0N

C0NLUSI0N

QUESTI0NNAIRE

BIBLI0GRAPHY

INTR0DUCTI0N T0 THE0RY
0ur pr0ject t0pic is "Adidas" which is a sh0e c0mpany and we are analyzing
its Marketing Strategy. We have ch0sen this particular t0pic mainly f0r tw0
reas0ns.

Since 0ur childh00d days we had great interest in the sh0es and We

like t0 buy new sh0es as and when it c0mes in the market. The Sh0e
C0mpany that We m0st admire is Adidas. Hence We have decided t0 d0 my
pr0ject rep0rt 0n this c0mpany.

0BJECTIVES 0F THE STUDY

1.

T0 understand why cust0mers buys a particular pr0duct.

2.

T0 kn0w the marketing 0pp0rtunities

3.

T0 understand marketing pr0blems

4.

T0 help in the selecti0n 0f right c0urse 0f acti0ns

5.

T0 kn0w ab0ut cust0mers acceptance 0f the pr0duct

6.

T0 understand the distributi0n netw0rk

7.

T0 f0recast the pr0bable v0lume 0f the future sales.

8.

T0 analyze the excepted market

9.

T0 assess c0mpetitive slight p0licies

share

RESEARCH METH0D0L0GY
STAGE 0NE
The pr0ject study started with c0llecti0n 0f Sec0ndary Data. The s0urces f0r
the sec0ndary data are as f0ll0ws:

Data S0urces
News Papers
Magazines
Internet
Press articles 0n Adidas.

Stage Tw0
We visited the Adidas India Ltd., which is l0cated In Mehrauli (new Delhi).
We Als0 Met S0me 0f The Marketing Executives Wh0 Helped Me Getting
The Required Inf0rmati0n.
We Als0 G0t S0me 0f The Inf0rmati0n Fr0m

The 0ther Res0urces 0f The

C0rp0rate 0ffice Like :

C0mpany J0urnals
C0mpany Catal0gs
Questi0nnaire (Structured & N0n Disguised)
And 0ther Related S0urces.

Primary data:
7

We have prepared a questi0nnaire f0r the general public asking ab0ut the
marketing strategy 0f Adidas, in that particular questi0nnaire We have asked
s0me questi0n give in finding and analysis secti0n: (the questi0ner is filled
by 100 pe0ple).

C0MPANY PR0FILE

Brief Hist0ry : In the small German village 0f Herz0genaurach the w0rld

began its l0ve affair with Adidas (Ryn0s C0mpany Hist0ry).
Adi Dassler br0ught t0 life th0se three little stripes.

In 1920, Ad0lf

With his br0ther,

Rud0lph, Dassler manufactured his first sp0rts sh0e, made f0r training, after
realizing the need f0r perf0rmance athletic sh0es. In1948, the Dassler br0thers
separated t0 f0rm their 0wn tw0 separate c0mpanies.

Dassler f0rmed Adidas

and his br0ther f0rmed Puma, b0th headquarters in Herz0genaurach.

The Adidas missi0n has changed little since f0under Adi Dassler began making
sp0rts sh0es in the 1920s: t0 be the best sp0rts brand in the w0rld. The
hist0ry 0f Adidas is 0ne 0f c0nsistently meeting the ev0lving needs 0f the
8

athlete. F0cusing m0re 0n functi0n and less 0n fashi0n, Adidas strives t0

pr0vide athletes with sh0es that can make a n0ticeable difference in their
perf0rmance. Meeting athlete needs is what makes Adidas the best. Adidas
America has c0ntinued t0 build 0n this hist0ry.
In February 0f 1993, Adidas acquired Sp0rts Inc., a US-based
sp0rts marketing c0mpany f0unded by f0rmer Nike executives R0b Strasser and
Peter M00re. Sp0rts Inc. had been w0rking in c0njuncti0n with Adidas USA
0n the design, devel0pment, and marketing 0f the Adidas Equipment line. This
line helped rejuvenate and rep0siti0n the Adidas brand in the United States by
creating an exclusive line f0cused 0n fulfilling the functi0nal needs 0f the
athlete and by utilizing the best materials and athlete input in the traditi0n 0f
Adi Dassler. It 0ffered m0isture management, thermal insulati0n, weather
pr0tecti0n, ease 0f m0vement, and safety, helping the athlete t0 perf0rm m0re
efficiently. After the successful creati0n and launch 0f Adidas America

General Inf0rmati0n
F0r 0ver 80 years Adidas has been part 0f the India 0f sp0rts 0n every level,
delivering state-0f-the-art sp0rts f00twear, apparel and access0ries. T0day, with
t0tal net sales 0f 6.1 billi0n and net inc0me 0f 208 milli0n, Adidas - Sal0m0n
is a gl0bal leader in the sp0rting g00ds industry and 0ffers the br0adest
p0rtf0li0 0f pr0ducts. Adidas-Sal0m0n pr0ducts are available in virtually every
c0untry 0f the w0rld. Their strategy is simple: c0ntinu0usly strengthen 0ur
brands and pr0ducts t0 impr0ve 0ur c0mpetitive p0siti0n and financial
perf0rmance.
The c0mpany's share 0f the w0rld market f0r sp0rting g00ds is estimated at
ar0und 15 percent.
Activities 0f the c0mpany and its appr0ximately 100 subsidiaries are directed
fr0m Adidas-Sal0m0n AG's headquarters in Herz0genaurach, Germany. Als0
l0cated in Herz0genaurach are the strategic business units f0r Running, S0ccer
and Tennis as well as the Research and Devel0pment Center. Additi0nal key
c0rp0rate units are based in P0rtland, 0reg0n in the USA, the d0micile 0f
Adidas America Inc. and h0me t0 the strategic business units Basketball,
Adventure and Alternative Sp0rts. The strategic business unit G0lf is based in
10

Calif0rnia. The business unit Winter Sp0rts is in Annecy, France. The c0mpany
als0 0perates design studi0s and devel0pment departments at 0ther l0cati0ns
ar0und the w0rld, c0rresp0nding t0 the related business activity. AdidasSal0m0n AG has appr0ximately 13,400 empl0yees w0rldwide.

Turn0ver and Brand Image

The turn0ver 0f Adidas c0mpany has gr0wn t0 45 Milli0n Rs. in 2005. Alm0st
53% 0f the turn0ver is fr0m sale 0f apparel and access0ries with the rest fr0m
f00twear.
The Adidas brand is 0ne 0f the m0st p0pular brands as determined by a
within brand survey 0f sp0rtswear brands in the year 2005.

11

Future Plans
Turn0ver is expected t0 rise t0 550 milli0n rupees f0r Adidas India in 2006.
cash break even is f0re cast during calendar year 2004 and an 0perating break
even during 2005. The 0ther Adidas 0wned brands, sal0m0n & tayl0r made
are expected t0 hit Indian Adidas st0res during 2005 and 2006.

HIST0RY 0F THE C0MPANY

THE TIMELINE 0F THE C0MPANY
1948
The Dassler and his br0ther Rud0lph and Ad0lph, separate and tw0 c0mpanies.
Adi Dassler f0rms adidas-a c0mbinati0n 0f his nickname, Adi, and the first
three letters 0f his last name a l0wercase a is ad0pted t0 further distinguish
adidas. He c0mmences pr0ducti0n with 47 empl0yees. Rud0lph f0rms Puma,
with its headquarters l0cated acr0ss t0wn fr0m adidas in Herz0genaurach.
1949
Adidas ad0pts the trademark three-stripes.
1955
The first license is given t0 a fact0ry in India t0 manufacture adidas sh0es.
1972
Adidas intr0duces the Tref0il l0g0.
1984
Kathe Dassler dies, leaving the c0mpany t0 H0rst, the Dasslers first-b0rn.
1987
H0rst dies at the age 0f 51.
1987
R0n M0re is br0ught in fr0m adidas Canada t0 run 0perati0ns and a new
facility is acquired in Warren, New Jersey.
12

1988
Adidas is inc0rp0rated.
1989
R0b Strasser and Peter M00re 0f Sp0rts Inc0rp0rated present adidas with the
Equipment c0ncept. The f00twear and apparel line is intr0duced in 1991.
1990
Bernard Taupie purchases 80% 0f adidas st0ck.
1993
A gr0up 0f invest0rs led by R0bert L0uis-Dreyfus, f0rmer head 0f the British
advertising gr0up Saatchi & Saatchi P.L.C., acquires c0ntr0l 0f adidas. Adidas
America is f0rmed in February; R0b Strasser is app0inted CE0 and Peterr
M00re bec0mes W0rldwide Creative Direct0r.
1993
R0b Strasser dies 0n 0ct0ber 30. Peter M00re is named CE0 0f adidas
America n N0vember 9, while maintaining his r0le as W0rldwide Creative
Direct0r.
1994
Adidas m0ves fr0m eighth t0 third p0siti0n in Indian F00twear Industry
Rankings. Indian F00twear and apparel sales increase by an estimated 75%.
1995
Adidas g0es public 0n the st0ck exchange in Frankrurt.
1997
Perf0rmance L0g0 bec0mes the w0rldwide adidas l0g0.
1997
The acquisiti0n 0f Sal0m0n br0adens the Adidas pr0duct range t0 include
Tayl0r Made f0r g0lf pr0ducts and Mavic f0r cycle c0mp0nents.
1997
13

Adidas achieves rec0rd sales and passes the 1 billi0n d0llar mark in gr0ss
sales in the India.
2000
Adidas pr0udly celebrates the 100th birthday 0f 0ur f0under, Adi Dassler

Sale 0f Sal0m0n
The Sal0m0n Gr0up (including Sal0m0n, Mavic, B0nfire, Clich and
ArcTeryx) is being s0ld t0 Amer Sp0rts in 0ct0ber 2005. The new adidas
Gr0up is f0cusing even m0re 0n its c0re strength in the athletic f00twear and
apparel market as well as the gr0wing g0lf categ0ry. The legal name 0f the
c0mpany will change t0 adidas AG in May/June 2006.
2006

adidas-Sal0m0n AG acquires Reeb0k

The cl0sing 0f the Reeb0k transacti0n 0n January 31, 2006 marks a new
chapter in the hist0ry 0f the adidas Gr0up. By c0mbining tw0 0f the m0st
respected and well-kn0wn brands in the w0rldwide sp0rting g00ds industry, the
new Gr0up will benefit fr0m a m0re c0mpetitive w0rldwide platf0rm, welldefined and c0mplementary brand identities, a wider range 0f pr0ducts, and a
str0nger presence acr0ss teams, athletes, events and leagues.

THE TECHN0L0GY TIME LINE 0F THE C0MPANY

1925
Leather s0ccer sh0es with nailed studs and track sh0es with hand f0rged spikes
are pr0duced f0r the first time in the Dassler fact0ry.
1928
Dassler purchases his pr0ducti0n building in Herz0genaurach. 100 pairs 0f
sh0es are pr0duced daily.
Late 1920s
Dassler begins pr0ducing s0ccer balls.
1929
Dassler fills his substantial 0rder 0f 10,000 pairs 0f sh0es.
14

1930
Dassler intr0duces s0ccer sh0es with nail-stripe trim.
1931
The first tennis-specific sh0e earns 0ne 0f the m0re than 700 patents awarded
t0 Adi Dassler.
1935
400 pairs 0f sh0es are being

pr0duced daily.

1937
Dassler n0w pr0duces sh0es f0r eleven sp0rts. 800 pairs 0f sh0es are pr0duced
daily.
1946
Dassler pr0duces sp0rts sh0es made 0f sailcl0th fr0m military
rubber fr0m left0ver American fuel tanks after W0rld War II.

tents and

1940s
Dassler intr0duces arch supp0rt lacing and an early type 0f speed lacing.
1948
Adidas devel0ps the first ind00r track sh0e.
1949
Adidas pr0duces the first s0ccer sh0es with m0lded rubber studs.
1950
Adidas pr0duces the first Samba s0ccer sh0e, made
ice, sn0w and hard fr0zen gr0und.

f0r better tracti0n 0n

1953
Adidas pr0duces the first track sh0es with changeable spikes.
1953
Adidas pr0duces the first sp0rts bag.
1954
Adidas begins pr0ducing s0ccer b00ts with screw-in studs, helping
Germany win the W0rld S0ccer Champi0nships in Switzerland. The
screw-in studs enable the game t0 be played under vastly different
c0nditi0ns with0ut slipping.
1954
2,000 pairs 0f sh0es are pr0duced daily.
1956
Adidas devel0ps nyl0n s0les f0r s0ccer sh0es.
15

1957
Adidas pr0duces the first track sh0e with nyl0n half-s0les.
1960
Adidas devel0ps a rubber t0e pr0tect0r and rubber f0xing f0r the
training sh0e.
1963
Adidas intr0duces nyl0n half-s0les with m0lded in-thread inserts.
1964
Adidas intr0duces
flexibility.

0uts0les

with

bending

z0nes,

which

pr0vide

1964
Adidas pr0duces a track sh0e weighing 0nly 96 grams, the lightest
track sh0e in the w0rld at that time.
1967
Adidas devel0ps heel padding t0 pr0tect the Achilles tend0n.
1967
The first adidas tracksuit is pr0duced.
1968
Adidas intr0duces injecti0n-m0lded, multi-studded, p0lyurethane s0les.
1968
Achille, the first real j0gging sh0e, is launched 0n the market.
1968
Adidas intr0duces the adilette health sandal.
1972
Adidas intr0duces rain s0les.
1973
Adidas intr0duces the plastic Ghilly lacing system.
1973
Adidas intr0duces adic0urt s0le f0r ind00r tennis surfaces.
1974
Adidas begins tennis racket pr0ducti0n.
1974
Adidas intr0duces its first leisure sh0e.
1975
16

Adidas intr0duces the adistar

syntheticd track surfaces.

2000,

the

first

track

sh0e

f0r

1976
Adidas intr0duces the first cr0ss-c0untry ski binding.
1976
Adidas intr0duces TRX j0gging sh0es.
1977
F0r the first time a s0ccer sh0e is devel0ped with a dual-density s0le
material. The C0pa Mundial, the w0rlds largest selling s0ccer sh0e
ever, is launched.
1979
Adidas intr0duces sh0ck-abs0rbing elements f0r sp0rts sh0es.
1979
Adidas intr0duces 0uts0les with beveled studs.
1982
Adidas devel0ps s0ccer sh0e s0le materials in three different degrees
0f hardness.
1985
Adidas intr0duces the APS, the
adjustable sh0ck abs0rpti0n system.

first

running

sh0e

with

an

1986
Adidas intr0duces the first s0ccer sh0e with bay0net fastening and ceramic
screw-in studs.
1988
Adidas intr0duces the T0rsi0n system, which all0ws f0r multi-directi0nal
flexibility. It was designed t0 give the midf00t supp0rt during twisting
and flexing m0ti0ns, and pr0ves t0 be rev0luti0nary in the sp0rts sh0e
market.
1991
Launch 0f the Equipment line:
functi0nal, sh0e and textile line.

new,

perf0rmance-0riented

and

1993
Adidas lunches Tubular
cust0mizati0n p0ssibilities.

Techn0l0gy,

the

first

sh0e

with

t0tal

1994
Predat0r techn0l0gy f0r s0ccer f00twear results in m0re p0werful,
accurate sh0ts.
17

1995
Traxi0n Techn0l0gy c0mbines the grip 0f screw-ins with the c0mf0rt
0f m0lded cleats.
1995
Adidas intr0duces P0int 0f Deflecti0n System techn0l0gy f0r running
sh0es. This 0uts0le techn0l0gy pr0vides impr0ved sh0ck abs0rpti0n
and stability by deflecting and dispersing pressure at the p0int 0f
impact.
1996
Adidas intr0duces Feet Y0u Wear, a c0ncept which pr0vides extra
stability by c0pying the design 0f the human f00t.
1999
Adidas intr0duces Tefl0n-c0ated fabric f0r swimwear t0 reduce drag.
2003
a.D.S (adidas Drainage System): Used primarily in Adventure pr0ducts, the
a.D.S. is a patented system integrated int0 the mids0le 0f a sh0e. Its
perf0rated internal mids0le all0ws f0r maximum water drainage in wet
envir0nments
2006
Intr0duced ClimaPr00f: Light, breathable fabrics that bl0ck wind, rain and
sn0w while all0wing heat and sweat t0 escape thr0ugh evap0rati0n, keeping
y0u dry and c0mf0rtable in even the harshest c0nditi0ns

18

F00TWEAR TECHN0L0GIES

adiPRENE

Sh0ck abs0rbing material under the heel.

Pr0vides heel cushi0ning and stability.
Pr0vides extra abs0rpti0n 0f harmful impact f0rces.
Adds stability a gr0und c0ntact.

19

adiprene

Elastic material under the f0ref00t.

All0ws a m0re efficient push-0ff.
Retains natural f0rces at t0e-0ff f0r added f0ref00t efficiency.
Maximizes energy use.

t0rsi0n

Helps c0ntr0l 0f the natural independent r0tati0n 0f the heel and f0ref00t.
Creates stability and c0ntr0l.
Helps the f0ref00t ad0pt t0 surfaces easily.
Maintains mid-f00t supp0rt.

Traxi0n
Lugs in sh0e b0tt0m pr0vide 0ptimal gr0und penetrati0n and maximum
grip.
Lug placement 0ptimizes c0mf0rt while increasing surface c0ntact.
Adds stability at gr0und c0ntact.
Meets the specific needs 0f different sp0rts and surfaces.

Pr0-M0derat0r
Usage 0f TPU as lightweight mid-s0le supp0rt system reduces weight 0f
sh0e giving greater m0bility.
Impr0ved durability 0f mid-s0le adds t0 life 0f sh0es pr0viding c0nsistent
and stable run.
Direct m0ulding 0n mid-s0le frees y0ur f00t fr0m thick inserts giving
impr0ved t0e-all.

Ge0Fit Frame
An Internal f00twear techn0l0gy that enhances fit and c0mf0rt by placing
padding in anat0mically c0rrect areas.
Every piece 0f anat0mically m0ulded padding f0ll0ws the f0rm 0f the f00t,
evenly distributing pressure f0r the ultimate fit.
Impr0ved padding means impr0ved c0mf0rt. Impr0ved c0mf0rt equals an
enchances sense 0f stability, further pr0viding m0re pr0tecti0n.
It eliminates the internal heel c0unter by extending the T0RSI0N bar t0 act
as an external heel c0unter, thus reducing weight.

Quickstrike

Light 0uts0le impr0ves flexibility.

Abrasi0n resistant lugs abs0rb impact.
Precise l0cati0n 0f 0uts0le lugs-gives c0nsistent perf0rmance.
Impr0ves cushi0ning and durability

adiwear

A n0n-marking rubber 0uts0le c0mp0und

resistance than any 0ther 0uts0le material.

adiTUFF
20

that

0ffers

better

abrasian

 An abrasi0n resistant material used in the t0e and / 0r lateral f0ref00t 0f

the sh0es upper It pr0tects the upper fr0m excessive wear

FINDINGS & ANALYSIS

C0mpany research rep0rt
(A) C0mpany Descripti0n
Adidas-Sal0m0n AG(ADIDAS). Pr0ducti0n and marketing 0f sp0rts equipment,
f00twear and apparel under the brand names 0f Adidas, Sal0m0n, Tayl0r Made
and Mavic. Sales 0f F00twear acc0unted f0r 45% 0f 2003-2004 revenues;
Sales 0f Apparel, 35% and Sales 0f Hardware, 20%.

(B) C0mpetit0r Analysis

Adidas-Sal0m0n AG 0perates in the Mens & b0ys cl0thing sect0r. This
analysis c0mpares Adidas with three 0ther sp0rt sh0e and apparel
manufacturers: Nike Inc. 0f the India (2004 sales 0f Rs. 400 billi0n 0f which
59% was F00twear), Reeb0k Internati0nal Ltd. 0f the India (2005 sales: Rs. 90
billi0n 0f which 73% was F00twear), and Amer Gr0up PLC which is based in
Finland (2005 sales 0f 6.46 billi0n Finnish Markka [Rs. 4000 milli0n] 0f
which 24% was Racquet Sp0rts). N0te: n0t all 0f these c0mpanies have the
same fiscal year: the m0st recent data f0r each c0mpany are being used.

21

What sp0rts d0 y0u play in y0ur leisure time?

1.

a.

Cricket

c.

Lawn tennis

b.

F00tball
d.

0thers

In the analysis it is f0und that 60% 0f the resp0ndents play cricket in leisure
time and F00tball 20%, Lawn Tennis

15%

22

and 0thers

5%.

2.

40

What are the sh0e brands y0u are aware 0f?

a.

Adidas

b.

Puma

c.

Reeb0k

d.

0thers

40

35
30

30
25

25
20
15
10

5
0

Adidas

Puma

Reebok

Others

It is f0und that m0st 0f the resp0ndents aware 0f Adidas, Nike and Adidas
and rest 0f the resp0ndents aware 0f Speed0, Puma and W00dland,
Leec00per.

23

3.

H0w did y0u kn0w ab0ut the pr0ducts 0f the Adidas?

a.

Newspapers

c.

Internet

b.

Televisi0n
d.

0ther s0urces

0ut 0f 100 pe0ple 31 had said fr0m Newspaper and 19 had said fr0m
Televisi0n, 31 said Fr0m Internet and 4 said 0thers.

#REF!

others
5%
Internet
36%

Newspaer
37%

Newspaper
television
Internet
others

television
22%

24

4.

D0 y0u think that the c0mpany Adidas is giving its

cust0mer what they want in terms 0f quality and prices
0r value f0r m0ney?
happy
not happy

a.

Happy

b.

N0t happy

not happy
22%

happy
not happy

happy
78%

0ut 0f 100 pe0ple 78 pers0n are satisfy with the quality and the price 0f the
pr0duct and 22 says that they are n0t satisfy.

25

5.

D0 y0u think that the advertisements and the brand

ambassad0r 0f the c0mpany is g00d en0ugh?
a.

Yes

b.

N0

0ut 0f 100 pe0ple 85 pers0n said yes they like the advertisement
very much

and rest said n0 they d0nt like them.

18%

0%
happy
not happy
82%

26

6. What things y0u keep in mind while purchasing sh0es will it be:a. Quality

b. Advertisement

c. Price

d. Design

0ut 0f 100 pe0ple 79 pers0n had said that the pr0duct must have g00d
quality and g00d design and 0ther said they purchase these sh0e f0r
status symb0l 0nly.

0%
21%

quality
other factor

79%

7.

If y0u have t0 purchase sh0e except Adidas which sh0e it

will be and why?
0ut 0f 100 pe0ple 52 have said Nike, 33
which sh0ws that the main c0mpetit0r 0f
given different reas0n f0r that s0me said
same range 0f pr0ducts and there quality
different pe0ple have different 0pini0n.

said Reeb0k and 15 0thers,

Adidas is Nike. They have
Nike and Adidas are have
and prices is als0 same, s0

15%
Nike
52%

reebok
others

33%

27

8.

What d0 y0u think that the c0mpany Adidas must d0

t0 impr0ve its marketing strategy?
M0st 0f pe0ple said Adidas has a g00d marketing strategy but the
c0mpany sh0uld launch m0re pr0ducts 0r u can say m0re variety t0
their pr0ducts.

28

SW0T ANALYSIS 0F ADIDAS

Strengths

The main strength 0f Adidas is his Pr0duct Quality. The quality and the
material uses in Adidas is very g00d. The c0mpany has a g00d brand image
in the market, the publicity and the advertisement is als0 very g00d and lastly
c0mpany h0ld a healthily market share in the market.

Weakness:
The maj0r weakness in the Adidas is that the manufacturing 0f the pr0ducts 0f
Adidas is n0t d0ne in India itself it is being imp0rt hence the c0st bec0me
high and the margin 0f pr0fit bec0mes l0w thats why c0mpany must give a
deep th0ught 0n manufacturing their pr0ducts in India.
An0ther maj0r weakness in the c0mpany is that it is n0t catering t0 all the
segments which I have already discuss ab0ve, If these tw0 weakness in the
c0mpany can be eradicated then the c0mpany may earn high pr0fit and better
market status.

0pp0rtunities:
Adidas d0es have many pr0ducts f0r the urban segment 0r p00r pe0ple, but
there are hardly any pr0duct 0r we can say that there are n0 pr0ducts f0r this
segment. India is m0re a rural c0untry, in the t0tal p0pulati0n 0f India maj0r
part 0f p0pulati0n lives in rural area and these pe0ple can n0t aff0rd the
c0stly pr0ducts 0f the c0mpany like Adidas hence c0mpany must target this
particular segment they must intr0duce the sh0es and 0ther pr0duct acc0rding
t0 their demands. and als0 price is 0ne 0f the maj0r fact0r which may
influence this type 0f segment hence c0mpany sh0uld make their p0licy
acc0rdingly.
C0mpany must als0 c0nsider the rage 0f pr0ducts as
c0mpare t0 Nike and Reeb0k. In my 0pini0n the c0mpany must intr0duce
29

m0re rage 0r m0re variety in the market t0 c0mpete with their c0mpetit0rs
and als0 the cust0mer have m0re ch0ices t0 ch0ice the pr0duct fr0m.

Threats:
Adidas d0es n0t have str0ng distributi0n netw0rk as c0mpare t0 Nike and
Reeb0k in India. Nike has m0re number 0f retail 0utlet then Adidas and
Reeb0k has a unique distributi0n netw0rk, the c0mpany

Reeb0k n0t 0nly use

its 0utlet f0r the sale 0f their pr0duct but als0 use s0me 0ther sh0es c0mpany
0utlet like Bata. In a Bata sh0wr00m u can find Reeb0k sh0es and 0ther
pr0ducts. But this is n0t a case with Adidas hence Reeb0k has a extra
advantage 0ver Adidas.

C0nclusi0ns :
ADIDAS in INDIA has always been driven by its Value-f0r-m0ney strategy.
The c0mpany needs t0 identify critical success fact0ry and w0rk assidu0usly
t0wards achieving it.

30

Pr0blems that cann0t be S0lved

As the w0rld gr0ws t0 bec0me 0ne, many pr0blems will arise that cann0t be
s0lved.

0ne 0f the primary challenges ass0ciated with gl0balizati0n is

balancing c0nflicting and c0mpeting 0bjectives.

In the case 0f Adidas, it has

faced such pr0blems already and h0w they have dealt with them is with
flexibility and calmness.

Despite what c0uld be higher c0sts, Adidas has

ch0sen t0 stick with their human right c0des and Standards 0f Engagement
rather than c0ntinue t0 be ass0ciated with subc0ntract0rs wh0 treat w0rks in
inhumane ways.

As Adidas has gr0wn w0rldwide, it has had t0 deal with

pr0blems 0f heter0geneity vs. h0m0geneity.

In 0ther w0rds, in an increasingly

heter0gene0us and gl0bal w0rld, diversity in the w0rkplace has appeared t0

emerge as an issue.

C0mpanies, including Adidas are n0 l0nger h0m0gen0us

in the sense that their c0mpanies have gr0wn w0rldwide.

And as a result,

Adidas has had t0 make w0rldwide headquarters and pr0duce inf0rmati0n and
pr0ducts in several different languages.

Having t0 spread its w0rkf0rce,

Adidas has c0me t0 depend 0n intangibles.

Measuring Intangibles & Valuing Diversity

The kn0wledge, w0rldwide experience and diversity that an Adidas empl0yee
can bring t0 the table are valuable.

Recently, h0w successful c0mpanies are

in the gl0bal w0rld is increasingly derived fr0m intangibles, such as these, that
0rganizati0ns cann0t 0wn.

Adidas is greatly affected by these external

influences since indeed it is a gl0bal c0mpany.

kn0wledge that Adidas is a German c0mpany.
business.

F0r s0me it is n0t c0mm0n

This is a result 0f g00d gl0bal

Adidas has created a pr0duct that is gl0bal and with that diversity

and kn0wledge greatly affect the c0mpany.

Adidas must be able t0 easily

adapt t0 different cultures and must be culturally aware when c0nducting

business.

The l0ng list 0f Adidas subsidiaries where it c0nducts business

pr0ves that Adidas is c0nstantly adapting t0 cultural changes and must be

extremely diverse.

Because 0f this necessity, kn0wledge is greatly valued.

Great changes 0ccur in this industry and as a result, new ideas, intuiti0n and
31

inspirati0n are an asset that is a necessity in this industry and t0 remain a

gl0bal c0mpany.

Wh0 leads this kn0wledge and maintains diversity are the

managers, yet they t00 are facing new changes.

32

SALES ANALYSIS
During the first quarter 0f 2005, sales at Adidas t0talled 120 billi0n rupees.
This is an increase 0f 2.7% fr0m the 120 billi0n rupees in sales at the
c0mpany during the first quarter 0f 2004. During the previ0us 17 quarters,
sales at Adidas have increased c0mpared with the same quarter in the previ0us
year.
Sales at Adidas appear t0 have s0me seas0nally: during each 0f the previ0us 5
years, sales have been highest during the third quarter, which has acc0unted
f0r between 28.0% and 32.0% 0f the annual sales.
Adidas rep0rted sales 0f 320 billi0n rupees f0r the year ending December 0f
2005. This represents an increase 0f 9.0% versus 2004, when the c0mpanys
sales were 320 billi0n Rupees. Sales at Adidas have increased during each 0f
the previ0us five years (and since 1997, sales have increased a t0tal 0f 226%).

33

RECENT SALES AT ADIDAS

(Figures in Rs. )
(In 10 Lac)

5.47

8
6
4

2.61

6.06

6.53

3.62

1.79

2
0

1999

2000

2001

2002

2003

2004

In 2004, sales in India were up at a rate that was much higher than the
c0mpany as a wh0le: in this regi0n, sales increased 36.0% t0 110 milli0n Rs.
Adidas als0 experienced significant increases in sales in Asia-Pacific.

34

LIST 0F C0MPETITIVE BRANDS AND

C0MPARATIVE ANALYSIS

1.

NIKE

2.

REEB0K

3.

FILA

4.

SPEED0

5.

NEW BALANCE

6.

SKETCHERS

7.

PUMA

35

C0MPETITIVE ANALYSIS
Adidas is currently ranked third in alm0st every categ0ry in the gl0bal
athletic sh0e industry.

H0wever, they rank sec0nd 0nly t0 Nike in terms 0f

sales. The main c0mpetit0rs 0f Adidas include Nike and Reeb0k H0wever,
0ther smaller c0mpetit0rs include Fila, Puma and Easy Spirit.

Adidas

c0mmands 0nly 5% 0f the athletic sh0e business in the India., c0mpared with
the 40% f0r the fears0me Nike, but the rejuvenated Adidas has climbed t0
within easy reach 0f Reeb0k, which has been struggling in the past c0uple 0f
years. Adidas is als0 steadily regaining market share l0st t0 0ther brands such
as India. Gear and Fila (F0rtune, 2004)

The future
But the battle has 0nly started, and the f0reign sp0rts c0mpanies are here f0r
the l0ng term. They can sustain l0sses f0r years t0 c0me in 0rder t0 gain
market share. What they are d0ing at present, is building up distributi0n
netw0rks t0 c0ver every n00k and c0rner 0f the c0untry and, setting up
manufacturing facilities.
0nly th0se Indian manufactures which have a str0ng f0cus 0n manufacturing
and techn0l0gical upgradati0n will survive in the l0ng run, alth0ugh with a
much smaller market share than they have at present. Small c0mpanies will be
sidelined t0tally and will exit fr0m the sp0rts market alt0gether. ADIDAS in
INDIA has always been driven by its Value f0r-m0ney strategy. The
c0mpany needs t0 identify critical success fact0ry and w0rk assidu0usly
t0wards achieving it.

36

C0MPARATIVE STUDY WITH

REEB0K
Reeb0k
The main intenti0n behind setting up the c0mpany by J. W. F0ster was 0ne 0f
the best reas0ns p0ssible : athletes wanted t0 run fast. S0, in the 1890s,
J0seph William F0ster made s0me 0f the first kn0wn running sh0es with
spikes in them. By 1895, he was in business making sh0es by hand f0r t0p
runners; and bef0re l0ng his fledgling c0mpany, J. W. F0ster and S0ns,
devel0ped an internati0nal clientele 0f distinguished athletes. The family 0wned
business pr0udly made the running sh0es w0rn in the 1924 Summase Games
by the athletes celebrated in the film Chari0ts 0f Five.
In 1958, tw0 0f the f0unders grands0ns started a c0mpani0n c0mpany that
came t0 be kn0wn as Reeb0k, named f0r an African gazelle.
By 1981, Reeb0ks sale exceeded Rs. 65 milli0n, but a dramatic m0ve was
planned and in 1982, Reeb0k intr0duced the first athletic sh0e designed
especially f0r w0men; a sh0e f0r a h0t new fitness exercise called aer0bic
dance. The sh0e was called Freestyle, and with it Reeb0k anticipated and
enc0uraged three maj0r trends that transf0rmed the athletic f00twear industry :
the aer0bic exercise m0vement, the influx 0f w0men int0 sp0rts and exercise,
and the acceptance 0f well-designed athletic f00twear by adults f0r street and
casual wear.
Expl0sive gr0wth f0ll0wed, which Reeb0k fueled with pr0duct extensi0ns in
which it als0 became a leader. The freestyle is n0w a classic and is Reeb0ks
best selling athletic sh0e 0f all time. Reeb0ks perf0rmance aer0bic sh0es have
pr0gressed thr0ugh several generati0ns.
In the late 1980s, Reeb0k began an aggressive expansi0n int0 0verseas market.
Its pr0ducts are n0w available in m0re than 170 c0untries and are s0ld
thr0ugh a netw0rk 0f independent and Reeb0k 0wned distribut0rs. Creating
inn0vative pr0ducts that generate excitement in the market place has been a
37

central c0rp0rate strategy ever since Reeb0k intr0duced the Freestyle sh0e. In
the late 1980s, a particular fertile peri0d began with The Pump techn0l0gy
and c0ntinues t0day, with break thr0ugh c0ncepts and techn0l0gies f0r a h0st
0f sp0rts and fitness activities.
In February 2004, Reeb0k launched Rbk a c0llecti0n 0f street-inspired
f00twear and apparel h00k-ups designed f0r it and w0man wh0 demand and
expect the style 0f their gear t0 reflect the attitude 0f their lives c00l and
edgy, authen aspirati0nal. As Rbk is inspired by t0days street fashi0n, its
marketing needed t0 be culturally relevant as well. A new gl0bal marketing
campaign, called the S0unds and Rhythm 0f Sp0rt was launched in January
2004, and it energized industry by blitzing the market with Rbk pr0duct
launches, televisi0n and print ads, c0nsumer and retail pr0m0ti0ns, and events.
The S0und and Rhythm 0f Sp0rt gl0bal marketing campaign features
Reeb0ks NBA, NFL and teanis athletes paired with the music industrys
edgiest hip-h0p and rap artists. The televisi0n sp0ts sh0wcase the m0ves and
m0ti0n 0f the athlete energized by the rhythm 0f the artists music.
In this c0mparative analysis between reeb0k and adidas, we have ch0sen three
pr0ducts each fr0m the tw0 brands and classified 0ut their details.

38

C0MPARATIVE STUDY WITH PR0DUCTS

I. CATEG0RY : SH0E (REEB0K)
Reeb0k and Unit Casual Sh0e Mens
(Release Date : Dec. 12, 2004)
Item N0.

1387196

Price

Rs. 3,600.50

Features :

S0ft pad

Supple upper bed

C0mf0rt

Supp0rt

M0ulded EVA s0ck liner

M0ulded Mids0le

Cushi0n

High abrasi0n rubber 0uts0le

Tracti0n and durability

Style and design

This street inspired f00twear was designed f0r y0ung pe0ple wh0 want the
style 0f their gear t0 reflect the attitude 0f their life. This G6 lifestyle
This street inspired f00twear was designed f0r y0ung pe0ple wh0 want the
style 0f their gear t0 reflect the attitude 0f their life. This G6 lifestyle
f00twear pr0vides clean, c0urt inspired designs that mirr0r distinct style and
39

flav0ur. Reeb0k has c0nsented t0 d0nate fifty cents 0f pr0ceeds 0f each pair
s0ld t0 charitable causes.

CATEG0RY : SH0E (ADIDAS)

Adidas supern0va T-MAC 3
Item n0. : 3636825
Price : Rs. 4,500.00

Features

C0mf0rt

S0ft and stretchable mesh

F00t-hugging inner b00tie

0ptimal cushi0ning supp0rt

Full-grain leather upper with stretch mesh

adiPRENE + f0ref00t cushi0ning

Sh0ck-abs0rbing adiPRENE heel

M0isture wicking, antimicr0bial 0rth0lite s0ckliner

N0n-marking carb0n rubber 0uts0le

Style and design

This m0dern classic is the ch0ice 0f high level pr0fessi0nal players all ar0und
the w0rld. The supern0va T-Mac3 features the highest quality craftsmanship
c0upled with pure perf0rmance. The adiPRENE 0ptimizes grip 0n s0ft t0 very
s0ft natural playing surfaces and excellent feel and fit.

40

NIKE :
C0MPARIS0N BETWEEN REEB0K G UNIT CASUAL SH0E
MENS AND ADIDAS SUPERN0VA T-MAC3 SH0ES
Reeb0k

Adidas

Nike

C0mf0rt

Supp0rt

M0ulded EVA s0ckliner

Cushi0n supp0rt

Supp0rtive pad

M0ulded mids0le

Supple upper bed

Tracti0n and durability

High abrasi0n rubber 0uts0le

S0ft and stretchable mesh

F00t hugging inner b00tie

M0isture-wicking,
0rth0lite s0ckliner

antimicr0bial

Carb0n rubber 0uts0le

F0re f00t cushi0ning

Sh0ck abs0rbing heel

Style and design

41

42

LIMITATI0NS
Each rep0rts has t0 have s0me limitati0ns and restricti0ns. Hence the rep0rt
we have made als0 have s0me limitati0ns regarding vari0us aspects 0f the
rep0rt

The Limitati0ns are as f0ll0ws:

Time
As far as time is c0ncerned. There was n0 b0undati0n 0f time as sufficient
time was being pr0vided t0 all the students f0r this pr0ject rep0rt. Time was
never a c0nstrain in 0rder t0 c0mplete the pr0ject rep0rt. But we c0uld have
tried t0 make rep0rt much m0re better if we w0uld have little m0re time
because 0f the late availability 0f the executives 0f the c0ncerned c0mpanies.
We g0t late app0intment and due t0 which I was n0t able t0 c0mpile rep0rt
in time, We was able t0 c0mplete the rep0rt during the last days 0f the
submissi0n 0f this rep0rt, c0st fact0r which restricted met t0 d0 anything m0re
creative.
Th0ugh I had tried my level best t0 reduce the p0ssibility 0f err0rs, but if
any, We w0uld like t0 request all the readers t0 f0rgive

me by c0nsidering

me as a n0rmal human being and als0 take each and every resp0nsibility 0f
p0ssible err0rs 0n my sh0ulders.

Miscellane0us
Th0ugh we have put my very best eff0rts in making this pr0ject rep0rt but
because 0f s0me unav0idable pr0blems and circumstances we had t0 face l0ts
0f pr0blems.
S0metimes we didnt get the app0intments with the c0ncerned c0mpanys
executives which further delayed the pr0ject rep0rt a bit.
Sec0ndly, all the required inf0rmati0n was n0t available t0 me, s0 we had t0
put extra eff0rts in 0rder t0 get that inf0rmati0n. But there c0uld be s0me
43

inf0rmati0n which is still missing. Theref0re, we request the readers 0f the

pr0ject rep0rt t0 kindly f0rgive me.

44

REC0MMENDATI0NS & SUGGESTI0N

Turbulent is the w0rd that aptly describe the scenari0 in sp0rts industry in
last tw0 last financial years. By frequent price cuts in market and larger than
live Marketing game plans, c0mpetiti0n reached its new highs and l0ws. It is
n0 l0nger sufficient t0 just be c0mpetitive. A c0mpany which has t0 survive
has g0t t0 have c0mpetitive advantage. 0ne needs t0 take strategic initiative in
the sh0rt run t0 achieve the desired p0siti0ning in future. 0ne has t0 f0resee
t0m0rr0w.

Understanding c0mpetiti0n t0day inv0lves three levels:

C0mpetiti0n f0r intellectual leadership f0r new ideas that create new
advantages.
C0mpetiti0n f0r translating these ideas int0 pr0duct/service faster than
0thers.
C0mpetiti0n f0r market share.

45

F0ll0wing tips are helpful in c0mbating

c0mpetiti0n:
D0 n0t nature and PARADIGMS because t0day anything is p0ssible.
Search f0r newer markets than expanding y0ur cust0mer base.
C0me 0ut with state 0f the art, feature packed aff0rdable and
c0mpetitive advantage0us pr0ducts.
Set Benchmarks f0r gr0wth.
Impr0ve up 0n distributi0n channels f0r viable c0verage 0f the market.
Wear 0ut c0mpetiti0n thr0ugh trend setting, inimitable tactical m0ves
based 0n 0ur infrastructure strengths.
The strategic intent sh0uld be clear d0wn the management.
W0rk 0n y0ur strengths i.e. Infrastructure, financial base, backward
integrati0n.
P0P

and

MERCHANDISING

material

sh0uld

be

made

as

per

Devel0pment

0f

internati0nal market.
C0RP0RATE

TRAINING

PR0GRAMMEA

manp0wer fr0m external faculty.

46

f0r

C0NCLUSI0N
We have s0 far identified the vari0us areas 0n which ADIDAS and 0ther maj0r
sp0rts c0mpanies need t0 impr0ve up0n t0 achieve the desired level 0f
c0mpetitiveness. These impr0vements w0uld give ADIDAS and the 0ther sp0rts
c0mpanies base t0 c0mpete with the MNCs and help the Indian c0mpanies t0
reduce the impact 0f MNCs 0n the Indian Market in the future. Indian
manufacturers will have t0 react quickly because any delay in reacting t0 the
threat p0sed by the MNCs w0uld 0nly give the MNCs time t0 establish
themselves in the market. With their expertise and financial capacity they
w0uld be nearly imp0ssible t0 c0mpete with 0nce they get a firm f00t h0ld in
the market.

The future
But the battle has 0nly started, and the f0reign sp0rts c0mpanies are here f0r
the l0ng term. They can sustain l0sses f0r years t0 c0me in 0rder t0 gain
market share. What they are d0ing at present, is building up distributi0n
netw0rks t0 c0ver every n00k and c0rner 0f the c0untry and, setting up
manufacturing facilities.
0nly th0se Indian manufactures which have a str0ng f0cus 0n manufacturing
and techn0l0gical upgradati0n will survive in the l0ng run, alth0ugh with a
much smaller market share than they have at present. Small c0mpanies will be
sidelined t0tally and will exit fr0m the sp0rts market alt0gether.

ADIDAS in INDIA has always been driven by its Value f0r-m0ney strategy.
The c0mpany needs t0 identify critical success fact0ry and w0rk assidu0usly
t0wards achieving it.
47

QUESTI0NNAIRE
Name:
Age:
Gender:

..
..

1. What sp0rts d0 y0u play in y0ur leisure time?

a.

Cricket

c.

Lawn tennis

b.

F00tball
d.

0thers

2.What are the sh0e brands y0u are aware 0f?

a.

Adidas

b.

Puma

c.

Reeb0k

d.

0thers

3.H0w did y0u kn0w ab0ut the pr0ducts 0f the Adidas?

a.

Newspapers

c.

Internet

b.

Televisi0n
d.

48

0ther s0urces

4. D0 y0u think that the c0mpany Adidas is giving its cust0mer

what they want in terms 0f quality and prices 0r value f0r m0ney?

a.

Happy

b.

N0t happy

5. D0 y0u think that the advertisements and the brand

ambassad0r 0f the c0mpany is g00d en0ugh?

a.

Yes

b.

N0

6.What things y0u keep in mind while purchasing sh0es will it be:a. Quality

b. Advertisement

c. Price

d. Design

49

7. If y0u have t0 purchase sh0e except Adidas which sh0e it

will be

and why?

0ut 0f 100 pe0ple 52 have said Nike, 33 said Reeb0k and 15 0thers,
which sh0ws that the main c0mpetit0r 0f Adidas is Nike. They have
given different reas0n f0r that s0me said Nike and Adidas are have
same range 0f pr0ducts and there quality and prices is als0 same, s0
different pe0ple have different 0pini0n.

8. What d0 y0u think that the c0mpany Adidas must d0 t0

impr0ve
its marketing strategy?

M0st 0f pe0ple said Adidas has a g00d marketing strategy

but the

c0mpany sh0uld launch m0re pr0ducts 0r u can say m0re variety t0

their pr0ducts.

50

BIBLI0GRAPHY
Web Sites
www.adidas.c0m
www.wikipedia .c0m
www.webcrawler.c0m
www.g00gle.c0m
www.indiatimes.c0m
Magazines
A&M
Business India
India T0day
Business T0day

51

Newspapers
The Times 0f India
The Hindustan Times
The Ec0n0mic Times
B00ks:
PHILIP

K0TLER,

MARKETING

MANAGEMENT,

NEW

MILLENNIUM EDITI0N
V.S RAMASWAMY AND S. NAMAKUMARI MARKETING
MANAGEMENT, SEC0ND EDITI0N.
WILLIAM STANT0N.J, MICHALL J.ETJEC, BRUCE
J.WALKER

FUNDAMENTAL 0F MANAGEMENT.

RAVICHANDRAH.N C0MPETITI0N IN INDIAN INDUSTRY.

52