Surya

TABLE OF CONTENTS
Contents Page Nos
1 Executive Summary
2 Objectives of the study
Research Methodology
3
1 Primary Data
2 Secondary Data
3 Sampling Design
4 Data Collection tools/instruments.
5 Limitations of the Study
4 Literature Review
Chapter I Topic Name-An Introduction(Scope &

Importance of the Study should be discussed)
Chapter Company NameA Profile

II
Chapter Competitor Analysis

III
Chapter Data Analysis and Interpretation

IV
Chapter Findings, Recommendations or Learnings and

V Conclusion
ANNEXURE
1.Copy of questionnaire/Fact sheets or Balance

sheet etc
2.Article
3.Case Study
4.Brochure,photos,leaflets etc (if Any)
Bibliography
1
EXECUTIVE SUMMARY
The Adidas group headquartered in Herzogenaurach(Germany) was built on 18 august

1920 by Adolf Dassler the brand and its products celebrated their first world wide success
in 1954 after German have won the soccer world championship. After some commercial
disappointments in the middle 80s, the family enterprise had to open up for investors .in
1995 followed the initial public offering on Frankfurts exchange market.to stay
competitive to Nike on the us market the company had taken over reebok in 2006.
Furthermore the company has worldwide 169 subsidiaries and had total revenue of
11.990mio. euros in 2010. The company uses the image of its brand and the available
amount of capital to sponsor many sports events such as soccer championships Olympic
games or Paralympics and many more.in 2012 adidas will be the official sports wear
partner of the Olympic games and the parlympics in London .
The Adidas mission has changed little since founder adi dassler began making sports
shoes . after the successful creation and launch of Adidas in America .i have made a
research on marketing strategies of Adidas by questionnaire method .the main aim of my
research is to find out how Adidas hold the market and what areas to improve upon ,in the
questionnaire itself I have emphasis on the marketing strategies of Adidas .and also the
current position of the Adidas in the market.. according to my research.
OBJECTIVES OF THE STUDY

To study the marketing strategies of Adidas
To find out Adidas main competitors and their marketing strategies.
To find out that how Adidas hold to the customers.
2
TYPE OF RESEARCH: -
PRIMARY DATA
Primary data was collected through survey method by distributing questionnaires .the
questionnaires were carefully designed by taking into account the parameters of my study.
SECONDARY DATA
Data was collected from websites going through the records of the organization it is the
data which has been collected by individual or some one else for the purpose of other than
those of my particular research study.
QUESTIONNAIRE Design
Under this method, list of questions pertaining to the survey are prepared for marketing
staff of consumers of Nike shoes.
Questionnaire has structured type questions as well as unstructured type questions.
Structured objective type questions are prepared for the respondents with fixed response
categories. Some of the questions are of multiple-choice type. The questions have more
than one alternative.
SAMPLING UNIT: -
Who is to be surveyed? The marketing researcher must define the target population that
will be sampled.
The sample Unit taken by me; General public of different age group, different gender and
different profession
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EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey
TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th July
SAMPLING FRAME:-
The source from which the sample is drawn
SAMPLING TECHNIQUE: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among the probability
sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different gender
and different profession
SAMPLE SIZE
No of consumers ; 50 nos
LIMITATIONS
The research project has been completed with ease and comfortabl y. No
particular limitation or shortcoming was realized during the anal ysis.
In some cases data is collected from their past records.
Also due to some constraints sufficient data was not given by the company.
4
LITERATURE REVIEW
The study of consumer behavior has evolved since the Information Processing Model
(Bettman, 1979) assumed that the individual is logical in his/her buying process. This
model was criticized because it failed to treat different consumption phenomena
motivated by symbolic meanings (Holbrook and Hirschman, 1982).
Individuals are not always looking for efficiency and economy, but also for distraction,
aesthetic, expression, etc. (Boyd and Levy, 1963). Calling for a broadening of theoretical
frameworks of consumer behavior, many authors pleaded in favor of the study of all
consumption forms (Holbrook, 1986), being inspired by European semi logy and
American semiotic (Levy, 1959, 1963, 1981; Hirschman, 1980; Kehret-Ward, Johnson
and Louie, 1985; Mick, 1986; Holbrook, 1986; OShaughnessy and Holbrook, 1988;
Nth, 1988; Stern, 1988; Grafton-Small and Linstead, 1989).
These are the study of signs, meanings and production of symbols. Fantasy, emotion and
pleasant aspects of consumption were then tackled from an experiential point of view.
The Experiential View is a phenomenological perspective that perceives consumption as
a primary state of consciousness having a variety of symbolic meanings, responses and
hedonist criteria (Holbrook and Hirschman, 1982;
Olshavsky and Granbois, 1979). The basis of the traditional Information Processing
Model is the optimization of the utility of a product under the basis of a utilitarian
evaluation of its tangible characteristics. Nevertheless, it neglects emotional aspects. On
the other hand, the Experiential View leaves out different factors such as economic
conditions, expectations, some elements of the marketing mix (price, distribution),
perceived risk and conflicts, but mostly the social influence of the consumers reference
groups (Holbrook and Hirschman, 1982; Business Central Europe, 1994) which is the aim
of the Symbolic Interactionism Perspective. Acquisition, possession and consumption are
activities taking place in a process of impressions creation or identity management which
is, according to Belk (1978), an interactive process concerning both the image of goods
consumed and that of the individuals consuming them. The Symbolic Interactionism
Perspective deals with the relationship between consumers and the products they
5
consume, and suggests that a significant proportion of consumption behaviors consist of
social behaviors, and vice versa (Solomon, 1983).
This leads us to consider the importance of socialization processes (family, reference

groups) through which individuals learn the meanings of symbols and those of
consumption. With the aforementioned meanings being negotiated and built through
interactions with others, consumption is not only an individual activity, but also a social
process of goods definition (Gallant and Kleinman, 1983). Since individuals are often
motivated to acquire products according to what they mean to them and to members of
their social reference groups (Leigh and Gabel, 1992), their behavior is subject to the
pressures of cultural norms and the expectations of socialization institutions rules such as
those coming from family and other reference groups (Faber, OGuinn and McCarthy,
1987; Engel, Blackwell and Miniard, 1993). Thus, Symbolic Interactionism Perspective
considers the human spirit as fundamentally social, and dependent on shared symbols.
The symbols being generated at a global level (Geertz, 1973; Solomon, 1983;
McCracken, 1986, 1988; Leigh and Gabel, 1992), the Symbolic Interactionism
Perspective accepts as precept the fact that society and its culture precede every
individual action, and that a cultural consensus results from interactions, communication,
and negotiation between social actors (Charon, 1989).
If, at a conceptual level, the consumption good becomes an instrument of communication,

at an operational level, image variables may be regarded as the intangible attributes of the
product that carry cultural and social meanings. According to Erickson, Johansson and
Chao (1984), an image variable is defined as some aspect of the product that is distinct
from its physical characteristics but that is nevertheless identified with the product. The
image variables emerge from four cognitive representations individuals have of their
environment: the symbolism of advertising, the celebrity endorsement, the brand, and the
country of origin of the product.
The made-in is considered by Dichter (1962) as the fifth element of the marketing mix,
and is defined as the country where are located the corporate headquarters of the
organization doing the marketing of the product or the brand (Johansson, Douglas and
Nonaka, 1985). The country of origin carries a rhetoric that influences consumers
preconceptions towards the products of a country. Its meaning can be conceived as an
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indication serving as a basis of evaluation (Bilkey and Nes, 1982), when one considers a
product as a bundle of information. Consequently, according to Kaynak and Cavusgil
(1983), the images of a foreign country that are formed by consumers are made of
cognitive, affective and behavioral components. The first one represents the perceived
characteristics of the country. The second one concerns the appreciation or not of those
characteristics, and the third one corresponds to the actions about the country that the
consumer feels are appropriate. A tendency to evaluate positively the local production
compared to imported production, and biases in favor of industrialized countries have
been found in previous studies (Bilkey and Nes, 1982; Cordell, 1992). This does not
mean the consumer will not buy the product, but rather that he is not inclined to do so
(Schooler, 1971). When entering foreign markets, sellers often face quotas, tariffs, and
non-tariff barriers. In addition, they may face an intangible barrier in the form of
consumer bias on the basis of product origin (Schooler, 1971).
The informational value of the country of origin was also found to vary according to the
level of involvement of the consumer in purchasing the product and the presence of other
cues such as brand name, guarantee and price (Ahmed and dAstous, 1993). In a recently
published meta-analysis of country-of-origin effects, Peterson and Jolibert (1995)
conclude that the average effect size is lower (0.19) for purchase intention, higher (0.30)
for quality/reliability perceptions and context dependent. More specifically, they found
that the characteristics of the study (research design, type of respondents, study cues,
sample size, stimulus context etc.) influence the relative effect of country-of-origin to a
lesser degree for quality/reliability perceptions than for purchase intention. However, the
type of respondents (students, consumers or businesspeople) had no influence on
quality/reliability perceptions.
Stanford GSB marketing professor Itamar Simonson and Ran Kivetz, an assistant
professor at Columbia University, asked a group of 195 Columbia students to do; eat a lot
of sushi.Participants were offered a "frequent diner" program that would reward them for
their patronage at various university dining locations and given a card that would track
their purchases. They were randomly assigned to one of two groups those in the "low"
requirement group were told they would have to purchase 12 sandwiches to get two free
movie tickets, whereas those in the "high" requirement group were told they would have
to purchase 12 sandwiches and 12 orders of sushi to get two free movie tickets. So, the
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second group had to do much more to receive the same reward. Kivetz and Simonson also
asked participants how much they liked sushi relative to the typical student. The result?
Students who liked sushi were much more likely to join the "frequent diner" program that
required them to purchase both 12 sandwiches and 12 orders of sushi. "It shows a
common mistake that consumers make & if they see an offer that seems to fit them better
than other consumers, for example, a program that requires sushi-lovers to eat sushi that
fit completely colors their assessment of how attractive the offer is," Simonson says. "As
a result, by creating what appears like personal fit, marketers can attract consumers to
frequency programs and many other promotional offers." Kivetz and Simonson replicated
these findings regarding influences on participation in frequency, or loyalty, programs in
studies with travelers interviewed at domestic airports.The sushi study is among a number
of studies Simonson has been conducting since the late 1980s about how consumers make
choices. Much of his work debunks the accepted theory that giving consumers what they
want and making a profit are the most basic principles of marketing.
The theme that pervades Simonson's work is that customers may not know what they
want and second-guessing them can be expensive. In his words, The benefits and costs
of fitting individual customer preference are more complex and less deterministic than
has been assumed." That's because, Simonson says, "customer preferences are often ill-
defined and susceptible to various influences, and in many cases, customers have poor
insight into their preferences."
In another recent paper, Simonson tackles the issue of one-to-one marketing and mass
customization. Supporters of these marketing approaches have suggested that learning
what customers want and giving them exactly what they want will create customer loyalty
and an insurmountable barrier to competition. In an example taken to the extreme in the
2007 movie Minority Report, Tom Cruise's character Anderson runs through a shopping
mall past talking billboards that recognize him by name and urge him to buy products he
has expressed interest in such as jeans and Ray-Bans; the ultimate in personalized
advertising. But Simonson has this to say: "The fact that consumer preferences are often
fuzzy, unstable, and manipulatable is unlikely to change. So, the effectiveness of
methods to give customers exactly what they (say they) want has been grossly
exaggerated." His take on the long-held assumption that individual marketing will
supplant targeted marketing is "not so fast." That's because consumers are very difficult to
8
figure out, science fiction and technology notwithstanding. "Furthermore, even when
customers have well-defined preferences and receive offers that fit those preferences, it is
far from certain that the response to such offers will consistently be more favorable than
those directed at larger market segments."
It's all psychology. Consumers with well-defined preferences may be skeptical that a
marketer could match expectations. Those who don't know what they want may not ever
see the fit with what the seller wants them to buy. So, individualized offers depend on
customers' preferences; how the offer was extended & and on trust. "Effective individual
marketing requires not only an understanding of individual preferences and matching
offers to those preferences, but also a thorough familiarity with the various factors that
impact customers' responses," he writes.
This is a tall order, one that some companies have been able to fill at least to some extent.
For example, Amazon keeps track of customers purchases and suggests other books they
might like. Dell builds computers from mass-made parts to customers' specifications. But
Simonson argues some companies can take the concept too far, like the Custom Foot
chain of shoe stores that took detailed measurements and specifications from each
customer to design one-of-a-kind shoes. Simonson argues that Custom Foot didn't take
into account that some customers were put off by the individualized attention and felt
obligated to buy the shoes because the store went to so much trouble. They often didn't
come back. Indeed, an Internet search produces no Website.
Simonson, who has received many prestigious awards for his research on consumer
behavior and marketing, teaches MBA and Ph.D. marketing and consumer decision-
making courses. The loyalty program article is slated for publication in the Journal of
Marketing Research this year.
Online customization gives consumers the opportunity to choose characteristics they want
in a product when they shop for it online. Many companies are looking at online
customization as the future of online business Janis Crow, Kansas State University
marketing instructor, researched how people make choices on the Internet. She recently
studied consumers in an online environment and their ability to customize several
products - pizza, shoes, and electronic devices.
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Crow said that her study posed two questions for respondents: first, how difficult is it to
customize a product, and secondly, how likely is the person to purchase the product he or
she has customized?
All participants in the study chose to customize products. In terms of customers

likelihood to purchase, a greater number of customers made purchase decisions when
there are more options to choose, she said. However, it was slightly more difficult when
more features were offered.
She created a website where people could customize products to their individual
preferences and needs. Crow selected three generic products: pizza, shoes, and a Personal
Digital Assistant (PDA). Thirty-one college students took part in the study.
"Students could customize the three products, and I provided a drop-down box on the site
with attributes to choose from," she explained. Consumers could click on a drop-down
box to customize a product they would want to purchase, she said. She found that more
people relied on the default choices rather than selecting other choices that were offered.
She said, some research suggests that many people do not want to put a lot of effort into
purchase decisions. "A lot of times, people may not have preferences already in mind,"
she said. When consumers have the chance to create preferences, the question is whether
they rely on previous preferences or if they develop new ones, she said. In the future,
Crow says she will be studying strategies that consumers go through during purchase
decisions. "I will be studying decision processes to develop computer aids that could help
the consumer reach their purchase decision," she said.
Although her current project involves analyzing the consumer behavior of college
students in an online environment, in future projects she plans to analyze other
demographic groups. Customization will be a key business opportunity in the future for
businesses online or in more typical shopping environments," Crow said.
She hopes her research will help consumers in making purchase decisions and help
businesses determine products to offer and how to offer them.
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Hong Kong companies, including leather consumer goods suppliers, have shown a
growing interest in tapping the mainland consumer market after China's accession to the
World Trade Organization and gradual opening of its domestic market. For Hong Kong
companies targeting this vast market, a good understanding of the behavior of mainland
consumers is necessary in order to formulate an effective and suitable market strategy.
In view of this, the HKTDC conducted a survey study in four major mainland cities in
February 2007. The study was composed of two interlocking surveys. The first survey
(survey on shoppers) successfully interviewed a total of 1,000 shoppers of leather
consumer goods in four major cities, namely Beijing (BJ), Chengdu (CD), Guangzhou
(GZ) and Shanghai (SH). The second survey (survey on retailers) interviewed
managers/officers-in-charge of major department stores in these four cities.
The survey study analyses leather consumer goods in terms of consumer behavior, the
competitiveness of Hong Kong brands and the consumer segments with the greatest
biggest spending power.
INTRODUCTION OF THE TOPIC
Marketing strategy has the fundamental goal of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic short term and
long term activities in the field of marketing that deal with the analysis of the strategic
initial situation of company and formulation evaluation and selection of market oriented
strategies that contribute to the goals of the company and its marketing strategies cover
everything from pay per click search engine marketing .public relations engineering with
marketing and much more.
Marketing management versus marketing strategy

The distinction between strategic and managerial marketing is used to distinguish two
phases having different conceptual tools .strategic marketing concerns the choices of
policies aiming at improving the competitive position of the firm taking into account of
challenges and opportunities proposed by the competitive environment .on the other hand
,managerial marketing is focused on the implementation of specific targets. Marketing
11
strategy is about lofty vision translated into less lofty and practical goals is where we
start to get our hands dirty and make plans for things happen.
Developing a marketing strategy

Strategic planning begins with a scan of the business environment both internal; and
external this includes understanding strategic constraints. An understanding of the
external operating environment including political ,economical social and technological
this analysis is termed as pestle analysis
The aim of the pest

Analysis is to identify opportunities and threats in the wider operating environment.
Firms try to leverage opportunities while trying to buffer themselves against potential
threats .basically ,the PEST analysis guides strategic decision making.
The main elements of the PEST analysis are as follows
Political
political intervention with the potential to disrupt or enhance trading condition e.g
government statues, policies funding or subsidies support for specific industries ,trade
agreements tax rates and fiscal policy
economic
economic factors with the potential to affect profitability and the prices that can be
charged such as economic trends inflation exchange rates seasonally and economic
cycles consumer purchasing power and discretionary incomes.
Social
social factors that are affect demand for product and services consumer attitudes tastes
and preferences like demographic social influencers role models shopping habbits.
Technological
Innovation technological developments or break through that create opportunities for new
products, improved production process or new ways of transacting business e.g new
material , new ingredients ,new graphic ,new machinery ,new packaging solution ,new
software and new intermediaries.
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Chapter 2
Company profile
Biggest sportswear manufacturer of Europe & one of the biggest in the world, Adidas is
segmented based on demographic, psychographic & behavioural factors. The Adidas
group has four brands in its strong portfolio Reebok, Adidas, Rockport & taylor made
meant for different segment customer groups. Adidas uses differentiated targeting
strategy to target young adults, adults as well as children who have passion for fitness &
sports. Although it targets customers in the age group of 13-40 years but majority of its
customers are of 15-30 years of age who hail from upper middle class or the luxury class
of customers.
User & benefit based positioning are the strategies Adidas uses to create distinctive image
in the mind of the prospective consumer. By emphasizing the value of quality products
from a trusted brand Adidas is able to maintain its brand essence. The portfolio is divided
as follows.
They have Adidas-performance in Competitive sports,

Reebok & Reebok classics in Active sports & casual sports, &
Adidas originals, Adidas Fun, Rockport in Sports fashion.
Marketing mix Click here to know about the Marketing mix of Adidas
SWOT analysis Click here to know about the SWOT analysis of Adidas
13
Mission in the Marketing strategy of Adidas The Adidas Group strives to be the
global leader in the sporting goods industry with brands built on a passion for sports and a
sporting lifestyle. We are committed to continuously strengthening our brands and
products to improve our competitive position.
Tagline Impossible is Nothing. This is one of the most famous tagline by the
company. This tagline, which showcases the importance of fitness and importance of
striving hard for anything you desire, is one of the biggest asset the company has, and
possibly summarises the marketing strategy of Adidas.
Competitive advantage in the Marketing strategy of Adidas One of the

few competitive advantages that Adidas has is its distribution network, its product quality
and its brand equity. Globally it has 2400 stores accounting $4.3 billion business (2014
data). In order to associate itself with the community it has sponsored many world sport
events such as FIFA, UEFA, NBA, Cricket & Olympics. At the same time, over the years
Adidas has been known to give the best products in the market which are always
comfortable, beyond normal and long lasting.
Strong relationship with the organizations such as International Labour organization,

International Finance Corporation has given the company edge over competitors for a
sustainable business.
BCG Matrix in the Marketing strategy of Adidas- BCG matrix helps in identifying the
strategic position & future course of actions of the SBUs (strategic business unit).
Adidas has four brands under the Adidas group out of which:
Adidas & Reebok are stars; Both of these individual brands have a strong market share
but at the same time the competition in this sports and fitness segment is very high. Other
brands like Pume, Nike also fight for a large share of the market.
Rockport & Taylor made is question mark This is because their market share is low but
at the same time there is a good potential for these brands. But when this potential will
actually benefit the company in a large way is yet to be seen.
14
Distribution strategy in the Marketing strategy of Adidas As the consumer
environment becomes even more dynamic with trends quickly changing, Adidas is also
increasing its focus on anticipating these changes and responding with speed. They had
aligned their sales with distribution strategy to enable and propel a heightened consumer-
centric Omni-channel mind-set. After analysing the purchase process of their customers,
they came to conclusion that the interactive experience and the availability, convenience
and the size of the product offerings plays a major role in a successful distribution
strategy. In order to expand their distribution system they made the products available
through Exclusive stores (franchise model), Co-branded stores who source it from C & N
and distributors.
Brand equity in the Marketing strategy of Adidas- Sports centric activities

predominantly revolving around social media & community connect programs has helped
Adidas to be one of the biggest players in the sportswear. Each brand and sub-brand is
responsible for bringing its own distinct identity and positioning to life, through the
creation of products, services and experiences that provide platforms and frameworks for
long-term market share and profitability improvements. While Adidas and Reebok each
have unique identities, heritages, technologies, designs and reputations, the strategic
principles and methods for driving future sales growth and profitability improvements are
common to both.
Competitive analysis in the Marketing strategy of Adidas Adidas Groups multi-

brand portfolio gives them an important competitive advantage. Through their brand
portfolio, they seamlessly cover the sports and consumer segments defined as
strategically important to support their Groups ambition to inspire and engage people to
harness the power of sport in their lives. Adidas is doing well because of its differentiated
positioning but Reebok, the brand Adidas has spent years trying to firm up, but its
situation is faltering.
Large firms such as Nike & Adidas have grown immensely over the last two decades.
Their global reach has expanded through all continents, which is attributed to the
changing lifestyle of developing economies & emergence of Internet, E-commerce firms.
Market analysis in the Marketing strategy of Adidas Due to the presence of

counterfeit products & high bargaining power of customers it is very difficult for these
15
players to sustain in the market. Although the offerings are meant for sports persons but
major chunk of its buyers are normal people professionals, young children who dont
mind switching to other brands due to the changing competitive positioning worked upon
by the players. Industry is growing due to changing lifestyle, economics of the population
& migration from Rural to urban areas but at the same time demand supply mismatch &
idle inventory is resulting into shrinking margins of the players in this industry.
Customer analysis in the Marketing strategy of Adidas Adidas customers consist of

upper & Upper-middle class social groups. To be successful across consumer segments,
Adidas acknowledged that a strategy of mass production or mass marketing is no longer
sufficient. Only by identifying and understanding consumers individual motivations and
goals for doing sport, their lifestyle, their fitness level, where they are doing sport and
their buying habits will help them in creating meaningful products, services and
experiences that build a lasting impression and brand loyalty.
BACKGROUND OF THE PROBLEM

Since the late 1980s, Business School marketing professor Itamar Simonson has looked
for ways to understand how consumers make choices. Much of his work debunks the
accepted theory that giving consumers what they want and making a profit are the most
basic principles of marketing. Customers may not know what they want, and second-
guessing them can be expensive, says the professor who teaches MBA and PhD
marketing and consumer decision-making courses. In Simonsons words, The benefits
and costs of fitting individual customer preference are more complex and less
deterministic than has been assumed. Thats because customer preferences are often ill-
defined and susceptible to various influences, and in many cases, customers have poor
insight into their preferences. In one of his recent papers, Simonson tackles the issue of
one-to-one marketing and mass customization. Supporters of these marketing approaches
have suggested that learning what customers want and giving them exactly what they
want will create customer loyalty and an insurmountable barrier to competition.
In an example taken to the extreme in the 2002 movie Minority Report, Tom Cruises
character runs through a shopping mall past talking billboards that recognize him by
name and urge him to buy products he had earlier expressed an interest in such as jeans
16
and Ray-Bans, the ultimate in personalized advertising. But Simonson has this to say:
The fact that consumer preferences are often fuzzy, unstable, and manipulatable is
unlikely to change. So, the effectiveness of methods to give customers exactly what they
(say they) want has been grossly exaggerated. His take on the long-held assumption that
individual marketing will supplant targeted marketing is not so fast. In studies, he has
learned that even when customers have well-defined preferences and receive offers that
fit those preferences, it is far from certain that the response to such offers will consistently
be more favorable than those directed at larger market segments.
Its all psychology. Consumers with well-defined preferences may be skeptical that a
marketer could match expectations. Those who dont know what they want may not ever
see the fit with what the seller wants them to buy. So, individualized offers depend on
customers preferences &; how the offer was extended &; and on trust. Effective
individual marketing requires not only an understanding of individual preferences and
matching offers to those preferences, but also a thorough familiarity with the various
factors that impact customers responses, Simonson writes. This is a tall order, one that
some companies have been able to fill, at least to some extent. For example, Amazon
keeps track of customers purchases and suggests other books they might like. Dell builds
computers from mass-made parts to customers specifications. But Simonson argues
some companies can take the concept too far, like the Custom Foot chain of shoe stores
that took detailed measurements and specifications from each customer to design one-of-
a-kind shoes. Custom Foot didnt take into account that some customers were put off by
the individualized attention, Simonson says, and felt obligated to buy the shoes because
the store went to so much trouble. They often didnt come back. So knowing only the
customer preferences is not enough. It is required to understand other aspects of customer
behavior. Kipping this in mind, present study will find out and analyze consumer
behavior of Nike shoes with reference to ladies segments.
In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing company
founded by former Nike executives Rob Strasser and Peter Moore. Sports Inc. had been
working in conjunction with Adidas USA on the design, development, and marketing of
the Adidas Equipment line. This line helped rejuvenate and reposition the Adidas brand in
the United States by creating an exclusive line focused on fulfilling the functional needs
of the athlete and by utilizing the best materials and athlete input in the tradition of Adi
17
Dassler. It offered moisture management, thermal insulation, weather protection, ease of
movement, and safety, helping the athlete to perform more efficiently. After the
successful creation and launch of Adidas America
General Information
For over 83 years Adidas has been part of the world of sports on every level, delivering
state-of-the-art sports footwear, apparel and accessories. Today, with total net sales of 6.1
billion and net income of 208 million, Adidas - Salomon is a global leader in the sporting
goods industry and offers the broadest portfolio of products. Adidas-Salomon products
are available in virtually every country of the world. Our strategy is simple: continuously
strengthen our brands and products to improve our competitive position and financial
performance.
The company's share of the world market for sporting goods is estimated at around 15
percent.
Activities of the company and its approximately 100 subsidiaries are directed from
Adidas-Salomon AG's headquarters in Herzogenaurach, Germany. Also located in
Herzogenaurach are the strategic business units for Running, Soccer and Tennis as well as
the Research and Development Center. Additional key corporate units are based in
Portland, Oregon in the USA, the domicile of Adidas America Inc. and home to the
strategic business units Basketball, Adventure and Alternative Sports. The strategic
business unit Golf is based in California. The business unit Winter Sports is in Annecy,
France. The company also operates design studios and development departments at other
locations around the world, corresponding to the related business activity. Adidas-
Salomon AG has approximately 13,400 employees worldwide.
Turnover and Brand Image

The turnover of Adidas company has grown to 20Million US dollar in year 2005-06.
Almost 53% of the turnover is from sale of apparel and accessories with the rest from
footwear.
The Adidas brand is one of the most popular brands as determined by a within brand
survey of sportswear brands in the year 2007.
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Future Plans
Turnover is expected to rise to 22 Million US dollar for Adidas India in 2006-07 cash
break even is fore cast during calendar year 2005 and an operating break even during
2006. The other Adidas owned brands, salomon & taylor made are expected to hit
Indian Adidas stores during 2005 and 2006.
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MARKETING STRATEGIES: AN OVERVIEW OF
ADIDAS
Some of the theory I have used in my project are as follows

Theory: what is market research and why it is important.
Market research is a method of collecting data which will make you (as a business) more
aware of how the people, you hope to sell to, will react to your products or services.
Market research will answer questions like:
Whether your products or services are needed
Who might want to buy your products
What age, sex, income occupation etc. are the people I want to sell to.
If there are changes taking place and how this might affect what you sell
How well your products or services might sell
How much demand there is for what you hope to sell
What price would people be prepared to pay
Conducting market research

There are number of ways in which you can carry out your research but you need to
carefully consider why you made this choice and what you hope the evidence will suggest
to you.
Questionnaires and personal interviews are one of the most common ways in which you
can conduct market research, and there are many methods of gathering data this way:
Direct Interview, Mail Survey and Telephone interview. Depending on the type of data
you hope to collect will have a impact on what you choose to use. I have made use of
two type of survey methods, questionnaire and mail survey. I have asked some
question about the company my mail and also by direct contacts. The Question I have
asked are given in questionnaire part below.
20
Theory: marketing mix
The Marketing Mix (The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964
article, The Concept of the Marketing Mix. Borden began using the term in his teaching
in the late 1940's after James Culliton had described the marketing manager as a "mixer
of ingredients". The ingredients in Borden's marketing mix included product planning,
pricing, branding, distribution channels, personal selling, advertising, promotions,
packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome
McCarthy later grouped these ingredients into the four categories that today are known as
the 4 P's of marketing, depicted below:
The Marketing Mix

These four P's are the parameters that the marketing manager can control, subject to the
internal and external constraints of the marketing environment. The goal is to make
decisions that center the four P's on the customers in the target market in order to create
perceived value and generate a positive response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are
some examples of the product decisions to be made:
Brand name
Styling
Quality
Price Decisions
21
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Cash and early payment discounts
Price flexibility
Price discrimination
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of distribution
decisions include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Warehousing
Distribution centers
Transportation
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the product
with the goal of generating a positive customer response. Marketing communication
decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Theory: SWOT analysis

This theory tells about the company strength, weakness, opportunity and Threats. This
theory is very important for the company because this theory tell the weakness and the
strong points of the company and if company knows it weakness and it strong points then
company becomes easy operative and also the profits as well as the market share of the
company get increased.
The Company
Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG
called Adidas India Ltd. and announced its joint venture with Magnum International
22
Trading Company Ltd. on October 1, 1996. The new joint venture Adidas India Ltd.
was incorporated with an initial investment of US $ 205 million with Adidas India Ltd.
holding 80% of the equity and Magnum holding the balance 20%. This investment was
raised to US $ 6.4 million with the equity structure remaining the same. Currently, the
total investment stands at US $ 11.4 Million with the equity structure changing to 91.4%
by Adidas and 8.6% by magnum.
Adidas Range of Products in India

A month after announcing the joint venture, Adidas India Ltd. launched its range of sports
footwear, apparel and accessories in New Delhi on November 1, 1996. Subsequently,
Adidas products were also launched in Mumbai, Bangalore, Chennai, Hyderabad and
Calcutta. Currently, Adidas products are available in 30 cities in India.
The range of Adidas products available in India include sports footwear featuring some of
the most popular innovations and technologies developed by Adidas such as Feet You
Wear, Torsion system and adi wear. The sports footwear available in India includes a
wide range of core categories such as adventure, basketball cricket, golf, indoor, running,
tennis, training, soccer and workout.
Adidas has introduced in India, a wide range of sports wear for both men and women.
These include apparel for athletics, basketball, cricket, golf, running, soccer, swimming,
tennis and training for Men. The womens range includes apparel for athletics, golf,
running, swimming, tennis, training and workout. Accessories include bag packs, campus
bags, medium and large kit bags, caps, socks, wrist and headbands.
Adidas Markets its products in India through a combination of mega exclusive stores
(area of 1000 sq. feet and above), exclusive stores, multi-brand stores and distributors.
At present, Adidas is available in 80 exclusive outlets out of which 34 are company
owned with 8 new Company owned stores planned for 2005 and in 500 multi-brand
outlets in India.
23
MARKETING-MIX (FOUR PS): ADIDAS
The Product
Whatever your athletic preference, you can now purchase an extensive range of Adidas
footwear and apparel online. From running shoes to baseball cleats, eye wear to lanyards,
collegiate licensed jackets to good old fashioned cotton T-shirts, all things sport are
available at the Adidas store.
How do adidas create its Products

Adidas goal is to create a product that is honest it must perform. The rule is
simple: form follows function.
Technology and functional design. A development team makes the actual
prototypes. These prototypes are then presented to the retail market by the
marketing department.
An Adidas product is the result of the intense thought and creative energy of
many different people. The following is a general outline of how we create our
performance-based products.
1. The marketing department evaluates athletes needs and develops a basi c
concept of how those needs should be met. This concept is then presented
to the design department.
2. Based upon this concept from the marketing department, the design teams
sketch possible prototypes.
3. The people from design and marketing consider the prototype sketches
together, narrowing the selection to those they anticipate will most
successfully meet athletes needs.
4. The development department then works with the design department to
create an actual prototype from the selected sketches.
5. Three separate groups marketing, design and development meet and
discuss how to improve the prototype.
6. Samples are wear-tested to ensure the product meets Adidas standards for
performance and durability and stands up to the demands of the sport for
which it was designed.
24
7. Preview samples are presented to key accounts and consumer focus groups
for feedback. Based upon this information, final changes are made.
8. Samples are distributed to Adidas sales representatives for presentation to
retailers.
9. The finished product is delivered to retailers.
I. As A BRAND
At Adidas you have got to be sporty. At Adidas the brand awarding is been
taken rather seriously at its headquarters. Adidas wants to bring inline skates
into India.
What that kind of stuff got to do with Indian market? Yes, it wont really be a
hot seller, but it will contribute a lot to Adidas brand image. Thats the Adidas
way of doing it image is a critical part of branding strategy the world over.
The idea of the company is to introduce performance specifi c sports shoes in
the Indian market by building images around the world & at the same time
create the need for these shoes at the ground level.
Adidas already has heavy weight sportsmen such as Sachin Tendulkar, Leander
Paes & Mahesh Bhupathi endorsing the brand in India. They had the image,
apart from endorsing the performance element in the brand. Adidas steps out of
crease with a clear sports positioning. Adidas will take on arch Nike with
almost the same positioning. Its working with promising athletes to give them a
taste of its products. Adidas nowadays is capturing an attitude that is sports
related.
Adidas in fact did go through a limited fashion phase. Adidas says that you
are tempted to make quick buck but we would like to stick to the sports bra nd
image because that make us fashionable.
II. Words of G. Kannan (Director Marketing)

Our Secret is our commitment to the sports process. We develop shoes that
take into account the needs of a particular sports & the role of this brand is
driven by this factor.
Good news for Adidas is that even in the casual market, the trend is towards
being sporty. Going to Gym is fast graduating from a mere fad to serious body
building, strengthening & toning. This is reflected in the clothes that people
25
wear today. The three stripes, for instance is unique property which can be
reinvented in various forms as trends changes.
C. For Adidas the product plays an eminent role in the enhancement of
their corporate as well as sports image:
ADIDAS SAYS
Nothing compromised. The most innovative Adidas products created specifically to help
make you a better athlete. For Adidas, product is not just a assortment of few items. But it
involvesdeveloping of the right product which can then be put to right place & sold
with the right promotion & price.
VALUE OF ITS PRODUCTS FOR ADIDAS

Our goal is to create a product that is honest it must perform. The rule is simple: form
follows function.
As studied earlier an Adidas product is the result of the intense thought an d
creative energy of many different people. If a company sell an automobile, is it
selling a certain no. of nuts and bolts, some metal sheet, an engine and four
wheels?
If a company sell a delivery service, is it selling so much wear and tear on a
delivery truck and so much operator fatigue? As per Adidas the answer to these
question is instead what we are really selling is the satisfaction, use or profit
the customer wants.
Adidas says that all the customer wants is, that whatever product they purchase
should fulfill all their needs and preferences. They dont care how they were
made. Further they want that when they order something, the dont really care
how much out of the way the driver had to go or where he/she has been. They
just want their package. That means for them only the final service matters.
As per Adidas the idea of product potential customers satisfactions or benefits is very
important. Adidas says that the total product is not just a physical product with its related
features, but it includes accessories, installation, instruction on use, the package, perhaps
the brand name which fulfills some psychological needs a warranty and confidence that
service will be available after the purchase.PLACE AND PHYSICAL DISTRIBUTION:
26
A: Place
Adidas is very much concerned about its second p. as per Adidas place and
physical distribution of the product is something on which almost every
company spends a handsome amount of money.
Hence Adidas takes a good care of its place and physical distribution proc ess.
Adidas has appointed marketing specialists who are taking care of the supply of
the product and their distribution channels and process.
Process used assorting progress
Entire range, which is available is put together to give a target market what it wants.
Marketing specialists put together an assortment to satisfy some target market. His is
usually done by those who are close to the retailers only.
B: Physical distribution
As per Adidas nearly half of the costs of marketing is spend upon the physical
distribution.
To take care of this problem Adidas has appointed marketing managers who decides how
the transporting and storing functions should be divided within a channel.
Note: Physical distribution can be varied endlessly in a marketing mix and in a channel
system.
TRUCKS
In Adidas, except the export products, trucks are considered to be the best medium for
transport. The flexibility of trucks makes them really good for moving small loads for
short distances. They can travel on almost any road. According to Adidas they can give
extremely fast service. Also trucks causes less breakage in handling.
PROMOTION:
Adidas is one of the Indias biggest company of sports that spends nearly $10 million on
its sales promotion and advertising in Indian Market.
Adidas believe that it just cannot be taken lightly. It is a very important aspect of products
life cycle. It is the process which is responsible for the growth or decline in the sale of the
product.
Adidas thinks that promotion is communicating information about the product between
the seller and the buyer to change attitudes and behavior.
27
To handle the companys promotional activities Adidas has employed marketing
managers, wherever the Adidas is located. These marketing managers look after process
of the promotion of the products of their company.
As per Adidas the marketing managers promotion job is to tell the target customers that
the right product is available at the right place and at the right time and especially at the
right price.
Adidas thinks that only taking the product to the customers is not a task of the
company. But company takes a very important look about how the product
works and this message is communicated to their consumers. Because a wrong
message can lead to the end of their products life.
Sales Promotion
Adidas is the most popular amongst its rival for its excellent sales promotional activities.
As per Adidas they say that they themselves are responsible for the
encouragement of the customer to by their products. Adidas believes sales
promotion tries to compliment the companys selling efforts.
STEPS THAT ADIDAS TAKE TO PROMOTE SALES
In the last years the Adidas has almost given sale to its products 6 to 7 times
i.e. almost twice in a year Adidas goes for discount on sale s. They arrange
contest.
In order to motivate the employees of the company Adidas also prepares
training material for the companys own sales force. They even design the sales
materials for the companys own sales force to use during the sales calls.
As per Adidas, people see same message in different ways. They may interpret
the same words differently. So Adidas always tries to deliver the message
which everyone can easily understand.
ADVERTISING
As per Adidas advertising can get results in a promotion blend. Good results are obtained
at a cost of course. The amount spent in the Unites States for advertising is growing.
Continuously, from World War II to 1980 it went from $1 billion to $50 billion.
28
Adidas also spends nearly $2.9 million on its advertising throughout the world. Adidas in
India is spending almost $17 million on advertising.The heavy weight players like
Sachin Tendulkar, Leander Paes and Mahesh Bhupathi are already attached with
their ad-campaigns.
PRICING:
Adidas is clear, it wants to become the no. one sports brand in India, a choice
brand for all brands. So far so good, but how will it tackle a price conscious
market like India?
Adidas feels that being a high energy business Adidas introduces 600 -700
articles every six months enables the brand to remain fresh and bring on an
international and Indians the brand from the price stand point.
Price, thats the most critical factor in the Indian context. Adidas believes it has
to deliver a functional at an affordable price. Its a tough job to maintain the
integrity of the performance and still come out with a product a right price
point. Globally shoes start at $50. But in India as the perceived need is lower,
you have to make the product more affordable.
To tackle this, Adidas came out with sp eed 2000, a product priced at Rs.995
with the help of local and Hong Kong source people. Adidas however feels that
its just the matter of time before India coverages the world on this front. It is
very difficult to operate on a lower price point and maint ain integrity of
product, but its been barely 3 years since the sports market has taken off.
The original sector is just 20% of the total market and 80% of the volumes
comes from sporty shoes. But our market is producing products at a price that is
relevant to the consumers.
Adidas feels that as the volume go up, Adidas will try and work out price points
as people graduate with better understanding of quality and price perception.
Volumes are bound to go up. Adidas started at the time when India had no
strength out in the sports products market in 1989 90. Its then lic
29
CHAPTER III
COMPARATIVE ANALYSIS
Adidas, the brand with three stripes, seems to use the elements of high -tension
in its ads. Remember the Sachin Tendulkar commercial? How everything is
near-frozen, and the shattering glass signifies release. Release of tension.
Adidas gives you a chance to but the boundaries in every sphere.
Only now, the setting is not the playground or the track or the court, it is the
urban landscape with its omnipresent traffic jams, crowded streets and so
forth. This way, Adidas becomes a part of life. Anyones life. You dont have to
be the high-voltage performer to be a part of the Adidas family. And it goes
beyond that Adidas becomes something that makes you better. Not just as an
athlete, but as a sports person, a better human being.
One of the advertisements : The spot featuring Boldon, shows him chasing a
thief (whod stolen a TV set when its owner was in the bath) through the dark
streets. To help a man (the owner, in a towel) in distress. And he uses all the
power that he can, to do what he has to do and what he needs to do. And Adidas
helps him perform better, than he would otherwise have been able to. This is
perhaps shown in an oblique way when th e spot ends at the feet of Boldon and
the bather.
One is wearing a pair of Adidas shoes while the other is barefoot. Adidas makes
you better, goes the base. In short, the other man could have done as well as
Boldon. The bather reads any man. Any man who w ears Adidas. And Adidas
goes beyond athletic performance it becomes everyday life. In stark reality.
Though humorously and light, it has a deep meaning.
30
MARKETING: ADIDAS
In 1997, Adidas became Adidas-Salomon with its US $1.4 billion purchase of Salomon, a
French manufacturer of skis and other sporting goods. The deal put Adidas one step
closer to competitor and world market leader Nike, and one step ahead of Reebok.
Salomon, aside from its winter sport equipment, also owns golf club brand Taylor Made
and cycle brand Mavic. The merger makes Adidas/Salomon the second largest sport
marketer in the world, and number one in Europe. Salomon is currently very strong in
North America and Japan, and Adidas has the largest market share in Europe.
Adidas is, like Nike, very active insuring sponsorships advertising deals with celebrities.
Some of the most famous are Martina Hingis (tennis), Kobe Bryant (basketball), Peyton
Manning, Paul Palmer (swimmer), jan Ullrich (racing cyclist) and the New York yankees.
David Beckham, Patrick Kluivert and Zidane all wear Adidas boots, the Predator
Accelerator.
LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING

STRATEGY IN INDIA
Continuing its association with trump card Sachin, the local four-ad print campaign tries
to connect Adidas product attributes with Sachins magic. Instead of presenting just one
dimensions :
The first ad connects Sachins choice of a heavy bat with Adidas Falcon Dorf light
weight shoes. Says the headline: Sachin likes his bat heavy, not his shoe.
The second new shoe range to be introduced for the first time in India. Sub-branded
Aksu and priced at Rs 2,299, these are athletic sandals primarily meant for water-based
adventure sports. Finally, The next ad will convey that Adidas covers various price points
by promoting its existing Portland range priced at Rs 1,499 and 1,799 (the leather
version).
The importance of celebrity sponsorship and events to Adidas is illustrated by Robert

Louis-Dreyfus letter in the companys 1998 annual report :
31
When it comes to showcasing our brands, 1998 was truly exceptional. Early in the year,
the Winter Olympics focused the attention of sports enthusiasts on Nagano. In summer,
the Soccer World Cup in France attracted more spectators than any single sports event
before. When the French team, promoting the three stripes, won the World Cup, we could
not have wished for more. These were great times for our brand.
Adidas has reached an agreement with ISL Marketing G of Switzerland to become an

official sponsor of the 2000 UEFA European Championships. Adidas will have access to
the official emblems, mascot and trophy for the design of its own products..
In 1998, the overall Adidas budget for promotion and sponsoring accounted for nearly
15% of turnover.
The positioning is being communicated through its global campaign-released worldwide

in February 1999 but in India, only in May-as well as through a four-ad print campaign
developed locally by RK Swamy/BBDO. Says G Kanan, general manager, marketing,
Adidas: We are the only brand with heritage in sports. As a brand, were not an attitude
thats fashionable. Were an attitude that is relevant all the time.
The campaign also introduces a new brand line for Adidas: Forever Sport. The line
sums up the deeply-felt and long-term love affair (it has been involved with sports
since 1928) that Adidas has with sport in all of its forms. Interestingly, the new brand line
has been introduced almost after a decade, when it was using Earn your stripes as its
tag-line. The company dropped it during the late 80s after it found that it wasnt
connecting too well with its consumers.
But the golden question is that will the campaign make Adidas run?
The company expects the campaign to strengthen the image of the brand since research
had indicated that neither of the three multinational sports shoe brands present in India
had a clear image: most were perceived as diffused brands and personality-led. Says
Kanan: Sachin has and will play a major role in pushing the brand. He is important, as
there are certain values a consumer needs to know about Adidas. But after a certain
32
duration, we have to present a global perspective too and hence the Forever Sport
campaign.
Interestingly, Adidas claims that it did not want to be caught up in the clutter of the
World Cup promotions-and deliberately chose not to associated with the World Cup.
Instead, according to Kanan, the campaign has been broken now to coincide with the peak
season (April-June). The World Cup is incidental. Its too large an event to make
significance for us, says Kanan.
However, the company is maintain a steady and dominant presence in the media during
the Cup: strewn over select channels like Star, Discovery, and ESPN are the Sachin ads
promoting Adidas. Star News is delivering good value while through Discovery, we can
catch the elite customer, Kanan says.
Although Kanan admits that the sports shoe and apparel market is at a nascent stage, he
claims that Adidas has grown by over 250 per cent from last year. As a company that
takes pride in not joining the price brawl, Adidas does not intend to bring down the prices
of its products. Says Kanan, We dont look at driving down the market by lowering the
price. We are willing to wait for the market to evolve.
For Adidas, the real breakthrough, says Kanan, has come through a combination of
strategies: signing on Sachin, Leander and Bhupathi; expanding its reach (it opened 45
stores last year); a revamped range which covers a band of price points; and support to the
brand. "e built-in value pricing in our products, and supported them through sports icons
who are looked up to. We have realized that to have just one good guy endorsing your
brand is more important than having several unknown faces, says Kanan
The company is enlarging the scope of its business by concentrating on apparel. Apparel
is driving the business. Most consumers start experimenting with the brand through
apparel, admits Kanan. Essentially perceived as a male brand, Adidas however defends
its range by pointing out that currently it has 50 items out of a total of 250, for women.
Further, Adidas is planning to add 30 new stores this year. Were looking at driving
the market through exclusive stores. Says Kanan. The logic is clear: use Forever Sport to
ensure sales forever.
33
Never achieved profitability and collapsed under the weight of its own unrealized
ambitions.
Adidass objective with the new line of footwear is to generate sales leads through its
Web site, either through direct purchase or a retailer finder. Villota says that every style
of footwear has a story, particularly those endorsed by star athletes, and its these stories
that sell the shoes to buyers.
While Villota wouldnt disclose how much of Bryants Adidas footwear is sold online, he
did say one of three visitors to the Bryant portion of the Adidas site demonstrated
purchase intent by clicking through to the store or to the retail finder.
The newest version of Bryants footwear hits the street Nov. 1, coinciding with the start
of the 2003-2004 NBA season. While Adidas wont comment on the new sites features,
citing competitive pressure, Villota says it is Adidas Americas most ambitious
integration of Web content and electronic marketing.
The Adidas - Salomon Executive Board will propose paying a dividend of CC 0.92 per
share to the Annual General Meeting of Shareholders on May 10, the same amount as in
the previous year. This decision to maintain a stable dividend level, despite the EPS
decline in 2004, underlines Managements confidence in its ability to achieve its 2005
targets. Management views 2004 as a year of consolidation and restructuring and has
increased the pay out percentage to reward long-term shareholders.
THE ADIDAS LOGO

The Trefoil was adopted as the corporate logo in 1972. It represents the heritage and
history of the brand. In 1996, it was decided that the Trefoil would only be used on
heritage products. Examples of product featuring the Trefoil logo include the Stan Smith,
Road Laver, A-15 warm-up, and Classic T-shirt.
34
Equipment
The Adidas Equipment line was launched in 1991. This line of footwear and apparel
represents the most unique and functional of Adidas products. Equipment is the ultimate
expression of what is uniquely possible by design when form follows function.
In January 1996, the Three-Stripes brand mark became the worldwide Adidas corporate
logo. This logo represents performance and the future of the Adidas brand. This logo is
used in all advertising, printed collateral and corporate signage.
Since 1949, the Three-Stripes have been an integral part of our brand and product
designs. This trademark has become synonymous with Adidas and its dedication to
producing high-quality athletic products to help athletes perform better.
35
ADIDAS: COMPANYS
FINANCIAL FACTS
For over 83 years Adidas has been part of the world of sports on every level, delivering
state-of-the-art sports footwear, apparel and accessories. Today, with total net sales of
182 million, Adidas-Salomon is a global leader in the sporting goods industry and offers
the broadest portfolio of products. Adidas-Salomon products are available in virtually
ever country of the world. Our strategy is simple: continuously strengthen our brands and
products to improve our competitive position and financial performance. The companys
share of the world market for sporting goods is estimated at around 19 percent.
SWOT ANAYSIS
Strengths:
The main strength of Adidas is his Product Quality. The quality and the material uses in
Adidas is very good.
The company has a good brand image in the market, the publicity and the advertisement
is also very good and lastly company hold a healthy market share in the market.
Another strength of the company is its well efficient and effective management, which
works as a team.
Weakness:
The major weakness in the Adidas is that the manufacturing of the products of Adidas is
not done in India itself it is being import hence the cost become high and the margin of
profit becomes low thats why company must give a deep thought on manufacturing their
products in India.
Another major weakness in the company is that it is not catering to all the segments
which I have already discuss above, If these two weakness in the company can be
eradicated then the company may earn high profit and better market status.
36
Opportunities:
Adidas does have many products for the urban segment or poor people, but there is hardly
any product or we can say that there are no products for this segment. India is more a
rural country, in the total population of India major part of population lives in rural area
and these people can not afford the costly products of the company like Adidas hence
company must target this particular segment they must introduce the shoes and other
product according to their demands.
Also price is one of the major factor which may influence this type of segment hence
company should make their policy accordingly.
Company must also consider the range and the variety of the products as compare to Nike
and Reebok.
In my opinion the company must introduce more rage or more variety in the market to
compete with their competitors and also the customer have more choices to choice the
product from.
Threats:
Adidas does not have strong distribution network as compare to Nike and Reebok in
India. Nike has more number of retail outlet then Adidas and Reebok has a unique
distribution network, the company Reebok not only uses its outlet for the sale of their
product but also use some other shoes company outlet like Bata. In a Bata showroom u
can find Reebok shoes and other products. But this is not a case with Adidas hence
Reebok has an extra advantage over Adidas.
Adidas do not have any competitive advantage as compared to Nike and Reebok.
37
CHAPTER IV
DATA ANALYSIS
1. Demography of respondents
Demographic Profile
20%
36%
6%
38%
students professionals businessmen others
ANALYSIS:
It was observed that the majority of the respondents consist of professional from various
fields like engineers, software professionals, working executive etc. who effective form
38% of our database. While 36% were students from various fields. Others constitute
designers and athletes etc. the further study is carried on the buying behavior of the above
mentioned categories of consumer, which shows that our consumer is well educated and
is very well informed about the product.
38
2. Consumers income level and spending capacity on shoes
spending power
None
1
spending limit
More then Rs. 6000

0
0
student
professional
Rs. 3000-6000
4
businessmen
others
10
11
Rs. 1000-3000
4
Less then Rs.1000
0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Less then More then Rs.

Rs. 1000-3000 Rs. 3000-6000 None
Rs.1000 6000
others 0 4 4 0 1
businessmen 0 0 1 2 0
professional 0 11 5 2 1
student 0 10 7 0 0
no: of people
ANALYSIS:
In the survey conducted a direct relation between the income level and the spending
capacity was observed. Also it was found that students were spending in the range of Rs
1000 Rs 3000 as compared to the working class professionals who were ready to spend
between Rs 3000 Rs 6000, since they have higher spending power because of higher
income levels.
39
SHOPPING SEASON
38
6
3 3
a.occasions b.festivals c.anytime d.travel/vacations
Series1
SHOPPING SEASON
ANALYSIS:
Amongst the student and the professional it was found the consumer buying BEHAVIOR
does not change with respect to the seasons and occasion as most of the consumer would
like to buy their shoes as and when need arises, whereas the businessman generally do
their shoes shopping during traveling or on special occasions.
BRAND RECOLLECTION
18
16
14
12
10
0
a. Adidas b. Nike c. Caterpillar d. Fila e. Reebok f. Others
Series1 17 11 0 2 17 3
BRAND RECOLLECTION:
ANALYSIS:
When asked about reconciling a sports shoes brand about 70% of the respondent were
able to recall REEBOK or NIKE were as rest were able to remember ADDIDAD and
FILA brands. This was due to the fact that REEBOK has brand ambassador like RAHUL
DRAVID and YUVRAJ SINGH.
40
Consumer Parameters
12% 20%
4%
a. Style
b. Brand Name
c. Comfort
d. Price
16%
e. Durability
48%
FACTOR INFLUENCING THE BUYING PROCESS:

ANALYSIS:
Among the various factors like social, psychological, personal and cultural factors it was
observed that the consumer give more preference to his personal choice and
psychological factors like 50% of the people consider comfort and they generally do not
consider durability as an important aspect because they believe that it comes along with
the brand. Also the social factor like style was second most important factor behind the
consumer buying motives.
OTHERS
20%
30%
10%
10%
30%
STYLE PRICE COMFORT

BRAND DURABILITY
41
Reebok
10%
30%
20%
10%
30%
STYLE PRICE COMFORT BRAND DURABILITY
(B) COMPARISON WITH OTHER BRANDS

ANALYSIS:
In response to the question about giving, out of 100 point to the various factors affecting
their buying BEHAVIOR between ADDIDAD and OTHERS following was observed:
OTHERS ADDIDAD
a. Style ____20____ ___30_____
b. Price ____10____ ___10_____
c. Comfort _____30___ ___30_____
d. Brand ____10____ ___20_____
e. Durability _____30___ ___10____
this further shows that the consumer look for style in the ADDIDAD more in comparison
to the other brand hence, gave their 30 points to it whereas 20 in case of other brands it
was seen that the comfort remains at equal place even while choosing a competitive
brand.
42
INFLUENCING FACTOR
6%
14%
8%
60%
12%
a. Family b. Friends
c. Brand Ambassadors d. Peers/Colleagues
e. Personal Choice
BUYING FORCES
ANALYSIS:
It was observed that consumer is forced by no factors like peer pressure, family and
friends and some time people would like to buy a product because it is being endorsed by
their favorite celebrity. It was observed that the beside that personal choice of the
respondent, the pressure from the friends plays an important buying force for the students,
while the peer and college in case of the professional and the least pursuing factor is
family which was seen in case of the respondents belonging to age group 35 years and
above.
43
BOUGHT REEBOK?
24%
76%
Yes No
NO OF PEOPLE BUYING ADDIDADSHOES & REEBOK SHOES:

ANALYSIS:
This question was asked to know the market capture by the REEBOK and the time period
of association of the customers with REEBOK. It was deduced that more than 75% of the
respondents were using the REEBOK shoes and were mainly associated with it for a
period of 1 year or more. While the remaining respondents were using either the NIKE or
ADDIDAS brand shoes.
44
SATISFACTION
16%
28%
4%
22%
30%
a. Very Satisfied b. Satisfactory c. Ok d. Poor e. not applied
CUSTOMER SATISFACTION:
ANALYSIS:
Because of the quality product offered by the REEBOK about 60% of the respondents
were either very satisfied or satisfied, while 10% did not gave any response as they were
not using the REEBOK shoes.
45
3. Do you ask for a specific brand by name?
No
10%
Yes
90%
90% people say yes to this. and the remaining 10% say no.
4. Which brand do you generally use?
Lotto
16%
Nike
Action 24%
17% Reebok
20%
Addidas
23%
People in India prefer NIKE the most as we can see that 24% % people prefer Addidad
sports wear. Then comes Adidas and Reebok.
46
5. Has any sports shoes ad (seen on TV/in a magazine) made an impact on you?
YES NO IF YES, THEN WHY

NIKE 43 57
ADIDAS 63 37
REEBOK 45 55
ACTION 30 70
70 70
63
60 57
55
50 43
45
40 37
30
30
20
10
0
NIKE
ADIDAS
REEBOK
ACTION
YES NO
Most of the people are influenced with Adidass ad, then with Reebok and then Addidad.
The most un-influential is that of action.
47
6. What according to you is the relative importance of the following?
V. Imp Imp. Not so Doesnt
Imp. matter
PRICE 50 28 12 10
DURABILITY 55 45 0 0
BRAND IMAGE 40 20 15 15
COMFORTABLE 54 36 10 0
LOOKS 40 40 15 5
Chart Title
V. Imp Imp. Not so Imp. Doesnt matter
55 54
50
45
40 40 40
36
28
20
15 15 15
12
10 10
5
0 0 0
PRICE DURABILITY BRAND IMAGE COMFORTABLE LOOKS
By this we infer that the consumer wants the shoe to be durable that is of primary
importance for them. Then the price is also very important for them. The shoe should be
comfortable. Along with that looks and the brand image is also important.
48
7. What features of Addidad do you like the most?
Chart Title
Air system Light weight Enhanced toe support Laceless models One size fit all
11%
18%
14%
22% 35%
The most liked feature of Addidad is the light weight shoe. Then it is the enhanced toe
support. From here we can infer that most important aspect for the consumers is the
comfort they get from the shoes.
49
8. What range you prefer?
Percentage of people
42
27
22
1500-3500 3500-5500 5500-7500 7500-9500
Larger number of people goes in for shoes that come under the range of Rs. 1500-3500.
A s we know that Addidad is a premium brand 27% of the buy shoes that falls under the
range of Rs. 3500-7500 and lesser no. of people buy shoes ranging in between 3500 and
5500.
50
9. How often you buy Addidad?
Weekly Monthly Yearly Not even once
2%
12%
24%
62%
62% of the consumers buy Addidad only once a year. Here we notice one thing that some
dont buy Addidad.
51
10. Are you satisfied buying Addidad?
70
64
60
50
40
30
21
20
15
10
0
Fully Satisfied Not satisfied Can't say
The people who buy Addidad are fully satisfied buying it, their percentage is 64%. Only
15 % are not satisfied buying it.
52
11. Do you think Addidad serves the purpose of being a good brand, for Sports wear?
60
50
40
30
20
10
0
Yes
No
Can't say
Yes No Can't say

Percentage of people 56 27 17
56% of the people agree that Addidad serves its purpose for being a sport brand. Only
27% people dont agree with it.
53
12. Will you prefer Addidad launching a new range which can serve the purpose of
service class?
Yes No Don't know
16%
17%
67%
67% say yes to the idea of launching a new range for the service class. 36 dont have any
idea of this.
54
Chapter V
CONCLUSION & FINDINGS
The specific brand objective of Addidad India would be to build up its brand reputation,
image and equity. A brand is not simply a collection of products and benefits, but also a
storehouse of value stemming from awareness, loyalty, and association of quality and
brand personality. A brand is a name, term, sign, symbol or design or a combination of
them intended to identify the goods or services of one seller or group of sellers and to
differentiate from those of competitors. In essence, a brand identifies the seller or maker.
It can convey up to six levels of meaning: Attributes, Benefits, Values, Culture,
Personality and User. If a company treats a brand only as a name it misses the point. The
branding challenge is to develop a deep set of positive associations for the brand.
Although these six meanings are noticeable in the Addidad brand in the west and other
parts of the world, they are yet to be cultivated in India. Addidad has to ensure that their
brand is built up on these pillars in India.
The secondary brand objective of Addidad India would be to ensure that they match the
market share and sales volumes of its competitors. After all, a company is in business to
make profits and stay ahead of its competitors. A company, product or brand may have a
very good reputation and image, but if it is not profitable, it does serve its purpose. At the
same time sales figures and data can be misleading. Hence market share has also to be
paid attention to.
Addidad despite being one of the most popular brands in the world has not really caught
on in India. Yet, there is reason to believe that Batas Power and Liberty would be ahead
of Addidad in terms of popularity. We also notice that Addidad is at par with Reebok.
This again does not reflect too well on the brand, considering that Addidad outsells
Reebok everywhere else in the world.
Hence it is reasonable to state that Addidads popularity level in India could do with a
boost. The best way to achieve this would be some serious brand building. The image of
the brand has to be improved and people must be made aware of its presence. Thus, the
55
rationale behind choosing improvement of brand image and reputation as the companys
primary objective is quite clear.
Addidads distinctive competency lies in the area of marketing, particularity in the area of
consumer brand awareness and brand power. On the global scale this key distinctive
competency towers over the competitors. As a result, Addidads market share is number-
one in the athletic footwear industry in most places around the world. Catch phrases like,
"Just Do It," and symbols like the Addidad "Swoosh," couple with sports icons to serve as
instant reminders of the Addidad Empire. It is about time that this competency is
leveraged on to India.
Two key attributes of a distinctive competency are its inability to be easily replicated and
the value or benefit it offers to consumers. Few companies have such a recognizable
image and the resources to promote it. This ultimately translates into added value for
consumers. The public benefits from the strength of Addidads image at the point of
purchase. For decades, consumers have come to associate the Addidad image with quality
products. By associating star athletes and motivational slogans like, "Just Do It," with
marketing campaigns that emphasize fitness, competition, and sportsmanship, consumers
identify their purchases with the prospect of achieving greatness. Younger consumers
especially benefit from this positive influence. This image is something that competing
companies can not easily duplicate by simply enhancing the physical characteristics of
their products.
Addidads vision is to remain the leader in the industry. The company will continue to
produce the quality products that have been provided in the past. Most importantly,
Addidad will continue to meet the ever-changing needs of the customers, through product
innovation. In the past, the company has utilized product differentiation as the main
competitive strategy. As Addidads reputation dictates, it will continue to place emphasis
in this area. Addidad has built its business on providing products that rise above all others
and this has made it the worldwide success that it is today.
Addidad is known for its technologically advanced products and is the leader in this area.
This allows Addidads products to stand out from the rest. The companys focus also
allows it to maintain a somewhat narrow niche that enables it to effectively capture the
56
needs and wants of the consumers. An example of Addidads superior and innovative
technology is its new range of shoes called Air Presto. Termed as the first T-shirt for
the feet, these shoes can take the shape and size of the wearers feet. Unlike regular shoes
it comes are sizes like XL, L, M, S and XS. Each of these sizes can accommodate three
conventional foot sizes. Addidad will continue to produce such path-breaking products in
the future and stay a step ahead of its competitors.
Addidad will also focus on making a strong effort in price leadership. Addidads products
in the past have been concentrated in the higher end of the pricing category. An entrance
will now be made into lower price categories with these quality products. This will enable
Addidad to capture an even greater hold on market share.
Presently, the only form of customer relationship management activity that Addidad has
adopted in India is product warranty. Addidad shoes come with a six-month warranty. If
the shoe is found to be defective or wears out within six months due to no fault of the
wearer, Addidad replaces the product. This is only the first step and more needs to be
dome in this area.
Being a company that always strives towards excellence, Addidad needs to know exactly
what its customers think about their products. A good way of assessing this would be to
have the customer fill in a form at the point of purchase. The form will ask the customer
his / her opinion on the product as well as the showroom. Suggestions and comments
would be welcome. However, care must be taken to ensure that these forms are not too
cumbersome and do not take up too much of the customers time. Surveys have indicated
that normally people dont mind filling in forms as long as they are not too long.
Another good method would be to introduce a system of customer points. Every time a
customer makes a purchase, he would earn himself a certain number of points, depending
on the price of the product. After he crosses a certain point level, he would be entitled to a
gift from the company or choose a product of a certain value from the range. This would
be helpful in building customer loyalty and give them an incentive to make repeat
purchases. A most valued customer database could be created from her e and various
forms of direct marketing could be directed at them. This would help the company to
retain its existing customers.
57
A third way to improve customer relationship would be to issue gift coupons and
vouchers. People would have the facility to buy these vouchers and present them to their
dear ones. This would be a good way to reach out towards newer customers through
existing ones.
58
RECOMMENDATIONS
To explore the mainland market, Hong Kong companies should position themselves in
areas in which they are strong. From the viewpoint of mainland consumers, Hong Kong's
leather consumer goods are considered competitive in the high-end and mid-range.
Mainland consumers are brand conscious, and it is vital to promote own brands which
have clear image.
This survey also shows that Hong Kong products are preferred for their design/style and
quality. Bearing these in mind, Hong Kong companies should never compromise on
quality, and they should allocate more resources to product design, selection of material
and craftsmanship.
59
ANNEXURE
QUESTIONNAIRE
1 I buy my own shoes
Very frequently
frequently
sometimes
never
2 I find buying shoes a pleasurable event.

Very frequently
frequently
sometimes
never
3. I buy costly shoes

Very frequently
frequently
sometimes
never
4 for purchasing shoes, I can travel long distance

Very frequently
frequently
sometimes
never
5 I buy shoes which are liked by my family

Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
60
6 I buy shoes which are advertised attractitively
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
7 I buy shoes which are advertised and endorsed by celebrity.
8 I like to buy shoes which are imported from Paris or Italy.

Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
9. I like to buy shoes which are designed in Paris or Italy.
10. I like to buy shoes which are very stylish & of latest design.
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
11. I like to buy shoes which are less expensive but very stylish & of latest design.
Strongly agree 30.00
Agree 50.00
Indifferent 14.00
Disagree 4.00
Strongly disagree 2.00
61
12. I Like to buy shoes which are not very stylish but comfortable
(%.of Respondents)
Agree 30.00
Indifferent 18.00
Disagree 32.00
13. I Like to buy shoes which are not stylish but comfortable and long lasting
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
14 I Like to buy shoes which are expensive & stylish but comfortable strongly agree
Agree
Indifferent
Disagree
Strongly disagree
15 I like to buy Addidad shoes which are expensive & stylish but comfortable
Strongly agree 8.00
Agree 24.00
Indifferent 4.00
Disagree 2.00
62
16 I like to buy Addidad shoes which are not very stylish but comfortable
Agree 16.00
Indifferent 2.00
Disagree 8.00
17 I like to buy Addidadshoes which are not stylish but comfortable and long lasting
Strongly agree 8.00
Agree 16.00
Indifferent 2.00
Disagree 12.00
18 I like to buy Addidadshoes which are not very stylish but comfortable
Agree 16.00
Indifferent
Disagree
Strongly disagree
19 I like to buy Addidadshoes which are less expensive but very stylish & of latest
design.
Strongly agree 4.00
Agree 10.00
Indifferent 4.00
Disagree 14.00
63
20 I like to buy Addidadshoes which are very stylish & of latest design.
Strongly agree 2.00
Agree 6.00
Indifferent 8.00
Disagree 22.00
21 I like to buy Tailor made shoes which are very stylish & of latest design.
Agree 38.00
Indifferent 24.00
Disagree 16.00
22 I will certainly buy shoes if high quality matching imitation jewelry given free.
Agree 56.00
Indifferent 4.00
Disagree 4.00
23 I will certainly buy shoes if high quality imported scent given free.
Agree 60.00
Indifferent 2.00
Disagree 2.00
24 My expectation is fulfilled by my shoe supplier.

Strongly agree 6.00
Agree 24.00
Indifferent 42.00
Disagree 8.00
64
25 Shoe companies should survey customer preferences.
Agree 56.00
Indifferent 16.00
Disagree 2.00
26 Shoe companies should suggest shoe design using celebrity.

Agree 52.00
Indifferent 14.00
Disagree 2.00
27 I know exactly what I want in my shoes.

Strongly agree 8.00
Agree 26.00
Indifferent 24.00
Disagree 22.00
28 I dont want to spend too much time on deciding my shoes.

Agree 58.00
Indifferent 8.00
Disagree 6.00
29 Stores display is the best form of advertisement
Agree 48.00
Indifferent 10.00
Disagree 4.00
65
30 T.V advertisement is the best form of advertisement
Agree 52.00
Indifferent 4.00
Disagree 16.00
31 Buying customized shoe by internet is very attractive.

Agree 52.00
Indifferent 4.00
Disagree 16.00
32 Buying customized shoe by internet is very attractive. But no spam mail.

Agree 28.00
Indifferent 2.00
Disagree 10.00
66
BIBLIOGRAPHY
Books:
PHILIP KOTLER, MARKETING MANAGEMENT, EDITION 2005.
V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT,
SECOND EDITION.
WILLIAM STANTON.J, MICHALL J.ETJEC, BRUCE J.WALKER
FUNDAMENTAL OF MANAGEMENT.
RAVICHANDRAH.N COMPETITION IN INDIAN INDUSTRY.
Web Sites
www.adidas.com
www.indiainfoline.com
www.webcrawler.com
www.indiatimes.com
Class Notes is referred
Magazines
A&M
Business India
India Today
Business Today
Newspapers
The Times of India
The Hindustan Times
The Economic Times
67

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TABLE OF CONTENTS

Contents Page Nos

Chapter I Topic Name-An Introduction(Scope &

Chapter Company NameA Profile

Chapter Competitor Analysis

Chapter Data Analysis and Interpretation

Chapter Findings, Recommendations or Learnings and

1.Copy of questionnaire/Fact sheets or Balance

The Adidas group headquartered in Herzogenaurach(Germany) was built on 18 august

OBJECTIVES OF THE STUDY

In some cases data is collected from their past records.

This leads us to consider the importance of socialization processes (family, reference

If, at a conceptual level, the consumption good becomes an instrument of communication,

All participants in the study chose to customize products. In terms of customers

INTRODUCTION OF THE TOPIC

Marketing management versus marketing strategy

Developing a marketing strategy

The aim of the pest

They have Adidas-performance in Competitive sports,

Competitive advantage in the Marketing strategy of Adidas One of the

Strong relationship with the organizations such as International Labour organization,

Brand equity in the Marketing strategy of Adidas- Sports centric activities

Competitive analysis in the Marketing strategy of Adidas Adidas Groups multi-

Market analysis in the Marketing strategy of Adidas Due to the presence of

Customer analysis in the Marketing strategy of Adidas Adidas customers consist of

BACKGROUND OF THE PROBLEM

Turnover and Brand Image

Some of the theory I have used in my project are as follows

Conducting market research

The Marketing Mix (The 4 P's of Marketing)

The Marketing Mix

Theory: SWOT analysis

Adidas Range of Products in India

How do adidas create its Products

II. Words of G. Kannan (Director Marketing)

VALUE OF ITS PRODUCTS FOR ADIDAS

LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING

The importance of celebrity sponsorship and events to Adidas is illustrated by Robert

Adidas has reached an agreement with ISL Marketing G of Switzerland to become an

The positioning is being communicated through its global campaign-released worldwide

THE ADIDAS LOGO

students professionals businessmen others

More then Rs. 6000

Less then More then Rs.

a.occasions b.festivals c.anytime d.travel/vacations

FACTOR INFLUENCING THE BUYING PROCESS:

STYLE PRICE COMFORT

STYLE PRICE COMFORT BRAND DURABILITY

(B) COMPARISON WITH OTHER BRANDS

NO OF PEOPLE BUYING ADDIDADSHOES & REEBOK SHOES:

a. Very Satisfied b. Satisfactory c. Ok d. Poor e. not applied

4. Which brand do you generally use?

YES NO IF YES, THEN WHY

PRICE DURABILITY BRAND IMAGE COMFORTABLE LOOKS

1500-3500 3500-5500 5500-7500 7500-9500

Fully Satisfied Not satisfied Can't say

Yes No Can't say

2 I find buying shoes a pleasurable event.

3. I buy costly shoes

4 for purchasing shoes, I can travel long distance

5 I buy shoes which are liked by my family

7 I buy shoes which are advertised and endorsed by celebrity.

8 I like to buy shoes which are imported from Paris or Italy.