Strategies on Adidas Marketing

8/9/2019 Strategies on Adidas Marketing

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RESEARCH REPORT

ON

“ STRATEGIES OF ADIDASMARKETING”

Table of Contents

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TitlePage

No.

1. Introduction 5

2. Objectives of the Study 11

3. o!"any Profile 13

#. $ar%eting $i& 22

5. $ar%eting Strategy ' ()I)(S 3*

*. +esearch $ethodology ,Sa!"le Si-e Sa!"le design

Sources of )ata ollection /ocation of the study0#1

. +esults Inter"retation #*

. o!"arative brand o!"arative (nalysis *5

4. /i!itations of the study #

1. +eco!!endations onclusion *

11. 6ibliogra"hy6ibliogra"hy

12. +eferences or 6ibliogra"hy 2

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Introduction

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INTRODUCTION

Brand Positioning: 7very "urchase of the consu!er is not guided by the chea"est of the

"rices but by the benefit that the usto!er "erceives for the invest!ent "lanned. 8ence it is

critical to be a""ealing to the i!age see%ers 9hile being relevant to the value for !oney

see%er. :ith lifestyles i!"roving and beco!ing i!"ortant to individuals; "ersonalities the

brand;s "ositioning and its relevance to the consu!er 9ill beco!e !ore i!"ortant than ever

before.

Customer Relationship Management: The e&"erience that the consu!er goes through

during the entire "urchase cycle and the "ost "urchase usage e&"erience is critical to the

organisations; future business. $anaging custo!er relations and the e&"erience that is offered

to her throughout 9ill be a challenge for all "layers.

Channel Management: ( strong influencer on the buying decision is the net9or% and the

organisation that !anages the net9or% better has a substantial edge over others.

The "ast cou"le of years could be ter!ed as the !ost dyna!ic years in the history of this

industry. The rise of $N brands and its adverse effect on the Indian counter"arts. $any

Indian brands have beco!e al!ost e&tinct. ?iven that s"orts goods is a high>tic%et "urchase the consu!er needs a strong

reassurance fro! the brand in ter!s of reliability. /ongstanding brands that have "roven trac%

record of trouble>free "roduct "erfor!ance score on this "ara!eter. /i%e any "roduct

electronic goods suffer 9ear and tear.

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PRODUCT PROFILE

Our "roject to"ic is @(didas@ 9hich is a shoe co!"any and 9e are analy-ing its $ar%eting

Strategy. :e have chosen this "articular to"ic !ainly for t9o reasons. Since our childhood

days 9e had great interest in the shoes and 9e li%e to buy ne9 shoes as and 9hen it co!es in

the !ar%et. The Shoe o!"any that 9e !ost ad!ire is (didas. 8ence :e have decided to do

!y "roject re"ort on this co!"any.

Brief History : In the s!all ?er!an village of 8er-ogenaurach the 9orld began its love

affair 9ith (didas ,+yno;s o!"any 8istory0. In 142 (dolf A(diB )assler brought to life

those three little stri"es. :ith his brother +udol"h )assler !anufactured his first s"orts

shoe !ade for training after reali-ing the need for "erfor!ance athletic shoes. In14# the

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The (didas !ission has changed little since founder (di )assler began !a%ing s"orts shoes

in the 142s' to be the best s"orts brand in the 9orld. The history of (didas is one of

consistently !eeting the evolving needs of the athlete.


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General Information

of>the>art s"orts foot9ear a""arel and accessories. Today 9ith total net sales of *.1 billion

and net inco!e of 2 !illion (didas > Salo!on is a global leader in the s"orting goods

industry and offers the broadest "ortfolio of "roducts. (didas>Salo!on "roducts are available

in virtually every country of the 9orld. Their strategy is si!"le' continuously strengthen our

brands and "roducts to i!"rove our co!"etitive "osition and financial "erfor!ance.

The co!"anyEs share of the 9orld !ar%et for s"orting goods is esti!ated at around 15

"ercent.

(ctivities of the co!"any and its a""ro&i!ately 1 subsidiaries are directed fro! (didas>

Salo!on (?Es headCuarters in 8er-ogenaurach ?er!any. (lso located in 8er-ogenaurach

are the strategic business units for +unning Soccer and Tennis as 9ell as the +esearch and

)evelo"!ent enter. (dditional %ey cor"orate units are based in Portland Oregon in the

DS( the do!icile of (didas (!erica Inc. and ho!e to the strategic business units

6as%etball (dventure and (lternative S"orts. The strategic business unit ?olf is based in

alifornia. The business unit :inter S"orts is in (nnecy


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The (didas brand is one of the !ost "o"ular brands as deter!ined by a 9ithin brand survey

of s"orts9ear brands in the year 25.

!uture Plans

Turnover is e&"ected to rise to 55 !illion ru"ees for (didas India in 2*. cash brea% even

is fore cast during calendar year 2# and an o"erating brea% even during 25. The other

(didas G o9ned brands salo!on taylor !ade are e&"ected to hit Indian (didas stores

during 25 and 2*.

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Objectives of

the Study

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"B#$CTI%$& "! TH$ M'R($T &T)*+

1. To analy-e the "ositioning strategies of (didas.

2. To %no9 the !ar%eting o""ortunities

3. To understand !ar%eting "roble!s

#. To hel" in the selection of right course of actions

5. To %no9 about custo!ers acce"tance of the "roduct

*. To understand the distribution net9or%

. To forecast the "robable volu!e of the future sales.

. To analy-e the e&ce"ted !ar%et share

4. To assess co!"etitive slight "olicies

1. 7ffectiveness of sales "ro!otional strategies.

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The Company Profile

(didas entered the Indian !ar%et in 144* by setting u" a 1F subsidiary of (didas (?

called (didas India /td. and announced its joint venture 9ith $agnu! International Trading

o!"any /td. on October 1 144*. The ne9 joint venture G (didas India /td. G 9as

incor"orated 9ith an initial invest!ent of +s. !illion 9ith (didas India /td. holding

F of the eCuity and $agnu! holding the balance 2F. This invest!ent 9as raised to +s

#5 !illion 9ith the eCuity structure re!aining the sa!e. urrently the total invest!ent

stands at +s. 5 $illion 9ith the eCuity structure changing to 41.#F by (didas and .*F by

!agnu!.

'didas, Range of Produ-ts in India

( !onth after announcing the joint venture (didas India /td. launched its range of s"orts

foot9ear a""arel and accessories in Ne9 )elhi on Nove!ber 1 144*. SubseCuently (didas

"roducts 9ere also launched in $u!bai 6angalore hennai 8yderabad and alcutta.

urrently (didas "roducts are available in 3 cities in India.

The range of (didas "roducts available in India include s"orts foot9ear featuring so!e of the

!ost "o"ular innovations and technologies develo"ed by (didas such as


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tennis training and 9or%out. (ccessories include bag "ac%s ca!"us bags !ediu! and large

%it bags ca"s soc%s 9rist and headbands.

(didas $ar%ets its "roducts in India through a co!bination of !ega e&clusive stores ,area of

1 sC. feet and above0 e&clusive stores !ulti>brand stores and distributors.

(t "resent (didas is available in 5 e&clusive outlets out of 9hich 3# are co!"any G o9ned

9ith ne9 o!"any G o9ned stores "lanned for 2* and in #5 !ulti>brand outlets in

India.

HI&T"R+ "! TH$ C"MP'.+

TH$ TIM$/I.$ "! TH$ C"MP'.+

0123:The )assler and his brother +udol"h and (dol"h se"arate and t9o co!"anies. (di

)assler for!s adidas>a co!bination of his nic%na!e (di and the first three letters of his last

na!e a lo9ercase AaB is ado"ted to further distinguish adidas. 8e co!!ences "roduction

9ith # e!"loyees. +udol"h for!s Pu!a 9ith its headCuarters located across to9n fro!

adidas in 8er-ogenaurach.

0121: (didas ado"ts the trade!ar% three>stri"es.

0144: The first license is given to a factory in India to !anufacture adidas shoes.

0156: 'didas introduces the ATrefoilB logo.

0132: athe )assler dies leaving the co!"any to 8orst the )asslers; first>born.

0135: 8orst dies at the age of 51.

0135: +on $ore is brought in fro! adidas anada to run o"erations and a ne9 facility is

acCuired in :arren Ne9 =ersey.

0133: (didas is incor"orated.

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0131: +ob Strasser and Peter $oore of S"orts Incor"orated "resent adidas 9ith the

A7Cui"!entB conce"t. The foot9ear and a""arel line is introduced in 1441.

0117: 6ernard Tau"ie "urchases F of adidas stoc%.

0118: ( grou" of investors led by +obert /ouis>)reyfus for!er head of the 6ritish

advertising grou" Saatchi Saatchi P./.. acCuires control of adidas. (didas (!erica is

for!ed in %no9n brands in the

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9orld9ide s"orting goods industry the ne9 ?rou" 9ill benefit fro! a !ore co!"etitive

9orld9ide "latfor! 9ell>defined and co!"le!entary brand identities a 9ider range of

"roducts and a stronger "resence across tea!s athletes events and leagues.

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TH$ T$CH."/"G+ TIM$ /I.$ "! TH$ C"MP'.+

!oot=ear Te-hnologies

ADIPRENE

Shoc% absorbing !aterial under the heel.

Provides heel cushioning and stability.

Provides e&tra absor"tion of har!ful i!"act forces.

(dds stability a ground contact.

Adiprene

7lastic !aterial under the forefoot.

(llo9s a !ore efficient "ush>off.

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+etains natural forces at toe>off for added forefoot efficiency.

$a&i!i-es energy use.

Torsion

8el"s control of the natural inde"endent rotation of the heel and forefoot.

reates stability and control.

8el"s the forefoot ado"t to surfaces easily.

$aintains !id>foot su""ort.

Tra>ion

/ugs in shoe botto! "rovide o"ti!al ground "enetration and !a&i!u! gri".

/ug "lace!ent o"ti!i-es co!fort 9hile increasing surface contact.

(dds stability at ground contact.

$eets the s"ecific needs of different s"orts and surfaces.

ProModerator

Dsage of TPD as light9eight !id>sole su""ort syste! reduces 9eight of shoe giving

greater !obility.

I!"roved durability of !id>sole adds to life of shoes "roviding consistent and stable run.

)irect !oulding on !id>sole frees your foot fro! thic% inserts giving i!"roved toe>all.

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Geo!it !rame

(n Internal foot9ear technology that enhances fit and co!fort by "lacing "adding in

anato!ically correct areas.

7very "iece of anato!ically !oulded "adding follo9s the for! of the foot evenly

distributing "ressure for the ulti!ate fit.

I!"roved "adding !eans i!"roved co!fort. I!"roved co!fort eCuals an enchances

sense of stability further "roviding !ore "rotection.

It eli!inates the internal heel counter by e&tending the TO+SION bar to act as an e&ternal

heel counter thus reducing 9eight.

Qui-gives consistent "erfor!ance.

I!"roves cushioning and durability

Adiwear

( non>!ar%ing rubber outsole co!"ound that offers better abrasian resistance than any

other outsole !aterial.

Adituff

(n abrasion resistant !aterial used in the toe and L or lateral forefoot of the shoe;s u""er

It "rotects the u""er fro! e&cessive 9ear.

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*efine the Mar


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Condu-ting mar


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Mar

The $ar%eting $i& ,The # PEs of $ar%eting0

• Product

• Price

• Place ,distribution0

• Pro!otion

The ter! @!ar%eting !i&@ beca!e "o"ulari-ed after Neil 8. 6orden "ublished his 14*#

article The Con-ept of the Mar: 6orden began using the ter! in his teaching in

the late 14#Es after =a!es ulliton had described the !ar%eting !anager as a @!i&er of

ingredients@. The ingredients in 6ordenEs !ar%eting !i& included "roduct "lanning "ricing

branding distribution channels "ersonal selling advertising "ro!otions "ac%aging dis"lay

servicing "hysical handling and fact finding and analysis. 7. =ero!e $carthy later grou"ed

these ingredients into the four categories that today are %no9n as the # PEs of !ar%eting

de"icted belo9'

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The Mar

These four PEs are the "ara!eters that the !ar%eting !anager can control subject to the

internal and e&ternal constraints of the !ar%eting environ!ent. The goal is to !a%e decisions

that center the four PEs on the custo!ers in the target !ar%et in order to create "erceived

value and generate a "ositive res"onse.

Produ-t *e-isions

The ter! @"roduct@ refers to tangible "hysical "roducts as 9ell as services. 8ere are so!e

e&a!"les of the "roduct decisions to be !ade'

• 6rand na!e

• Styling

• Muality

Pri-e *e-isions

So!e e&a!"les of "ricing decisions to be !ade include'

• Pricing strategy ,s%i! "enetration etc.0

• ash and early "ay!ent discounts

• Price fle&ibility

• Price discri!ination

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*istribution APla-e *e-isions: )istribution decisions include'

• )istribution channels

• $ar%et coverage ,inclusive selective or e&clusive distribution0

• :arehousing

• )istribution centers

Promotion *e-isions

In the conte&t of the !ar%eting !i& "ro!otion re"resents the various as"ects of !ar%eting

co!!unication.

Pro!otional strategy ,"ush "ull etc.0

• (dvertising

• Personal selling sales force

• Sales "ro!otions

Theory: &=ot 'nalysis

This theory tells about the co!"any strength 9ea%ness o""ortunity and Threats. This theory

is very i!"ortant for the co!"any because this theory tell the 9ea%ness and the strong "oints

of the co!"any and if co!"any %no9s it 9ea%ness and it strong "oints then co!"any

beco!es easy o"erative and also the "rofits as 9ell as the !ar%et share of the co!"any get

increased.

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Marketing Mix

M'R($TI.GMI A!")R P,&: '*I*'&M'R($TI.GMI A!")R P,&: '*I*'&

TH$ PR"*)CT:

:hatever your athletic "reference you can no9 "urchase an e&tensive range of (didas

foot9ear and a""arel online. shirts all things s"ort are available

at the (didas store.

H"D *" '*I*'& CR$'T$ IT& PR"*)CT&

(didas goal is to create a "roduct that is honest G it !ust "erfor!. The rule is

si!"le' for! follo9s function.

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Technology and functional design . ( develo"!ent tea! !a%es the actual

"rototy"es. These "rototy"es are then "resented to the re tail !ar%et by the

!ar%eting de"art!ent.

(n (didas "roduct is the result of the intense thought and creative energy of !any

different "eo"le. The follo9ing is a general outline of ho9 9e create our

"erfor!ance>based "roducts .

1. The !ar%et ing de"art!ent evaluates athletes; needs and develo"s a basic

conce"t of ho9 those needs should be !et. This conce"t is then "resented to

the design de"art!ent.

2. 6ased u"on this conce"t fro! the !ar%eting de"art!ent the design tea!s

s%etch "ossible "rototy"es.

3 . The "eo"le f ro! des ign and !ar%eting consider the "rototy"e s%etches

together narro9ing the selection to those they antici"ate 9ill !ost

successfully !eet athletes; needs.

# . The develo"!ent de"art!ent then 9or%s 9ith the des ign de"ar t!ent to

create an actual "rototy"e fro! the selected s%etches.

5 . Three se"ara te grou"s G !ar%eting des ign and develo"!ent G !eet and

discuss ho9 to i!"rove the "rototy"e.

*. Sa!"les are 9ear>tested to ensure the "roduct !eets (didas standards for

"erfor!ance and durabili ty and stands u" to the de!ands of the s"ort for

9hich it 9as designed.

. Previe9 sa!"les are "resented to %ey accounts and consu!er focus grou"s

for feedbac%. 6ased u"on this infor!ation final changes are !ade.

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. Sa!"les are distr ibuted to (didas sales re"resentat ives for "resentat ion to

retailers.

4. The f inished "roduct is del ivered to retai lers .

's ' BR'.*

(t (didas Gyou have got to be s"orty. (t (didas the brand a9arding is been ta%en

rather seriously at its headCuarters. (didas 9ants to bring inline s%ates into India.

:hat that %ind of stuff got to do 9ith Indian !ar%et Hes it 9on;t really be a hot

seller but it 9ill contribute a lot to (didas brand i!age. That;s the (didas 9ay of

doing it G i!age is a critical "art of branding strategy the 9orld over.

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The idea of the co!"any is to introduce "erfor!ance s"ecific s"orts shoes in the

Indian !ar%et by building i!ages around the 9orld at the sa!e ti!e create the

need for these shoes at the ground level.

(didas already has heavy 9eight s"orts!en such as Sachin Tendul%ar /eander

Paes $ahesh 6hu"athi endorsing the brand in India. They had the i!age a"art

fro! endorsing the "erfor!ance ele!ent in the brand. (didas ste"s out of crease

9ith a clear s"orts "ositioning. (didas 9ill ta%e on arch Ni%e 9ith al!ost the sa!e

"osi tioning. It s 9or%ing 9ith "ro!is ing athletes to give the! a taste of its

"roducts . (didas no9adays is ca"turing an at ti tude that is s"orts rela ted.

(didas in fact did go through a li!ited fashion "hase. (didas says G that you are

te!"ted to !a%e Cuic% buc% but 9e 9ould li%e to stic% to the s"orts brand i!age

because that !a%e us fashionable.

(. :ords of ?. annan ,)irector G $ar%eting0

AOur Secret is our co!!it!ent to the s"orts "rocess. :e develo" shoes that ta%e

into account the needs of a "articular s"orts the role of this brand is driven by

this factorB.

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?ood ne9s for (didas is that even in the casual !ar%et the trend is to9ards being

s"orty. ?oing to ?y! is fast graduating fro! a !ere fad to serious body building

strengthening toning. This is reflected in the clothes that "eo"le 9ear today. The

three stri"es for instance is uniCue "ro"erty 9hich can be reinvented in various

for!s as trends changes.

6.


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9ith its related features but it includes accessories installation instruction on use

the "ac%age "erha"s the brand na!e 9hich fulfills so!e "sychological needs a

9arranty and confidence that service 9ill be available after the "urchase.

P/'C$ '.* PH+&IC'/ *I&TRIB)TI".:

(' Place

(didas is very !uch concerned about its second A"B. as "er (didas "lace and

"hysical distribution of the "roduct is so!ething on 9hich al!ost every co!"any

s"ends a handso!e a!ount of !oney.

8ence (didas ta%es a good care of its "lace and "hysical distribution "rocess.

(didas has a""ointed !ar%eting s"ecialists 9ho are ta%ing care of the su""ly of the

"roduct and their dist ribution channels and "rocess.

Pro-ess used E assorting progress

7ntire range 9hich is available is "ut together to give a target !ar%et 9hat it 9ants.

$ar%eting s"ecialists "ut together an assort!ent to satisfy so!e target !ar%et. 8is is usually

done by those 9ho are close to the retailers only.

B: Physi-al distribution

's per 'didas nearly half of the -osts of mar


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TRUCKS

In 'didasF e>-ept the e>port produ-tsF tru-ibility of tru-


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Sales Promotion

(didas is the !ost "o"ular a!ongst its rival for its e&cellent sales "ro!otional

activities.

(s "er (didas they say that they the!selves are res"onsible for the encourage!ent

of the custo!er to by their "roducts. (didas believes sales "ro!otion tries to

co!"li!ent the co!"any;s selling efforts.

&T$P& TH'T '*I*'& T'($ T" PR"M"T$ &'/$&

In the last years the (didas has al!ost given sale to its "roducts * to ti!es i.e.

al!ost t9ice in a year (didas goes for discount on sales. They arrange contest.

In order to !otivate the e!"loyees of the co!"any (didas also "re"ares training

!aterial for the co!"any;s o9n sales force. They even design the sales !aterials

for the co!"any;s o9n sales force to use during the sales calls.

'*%$RTI&I.G

(s "er (didas advertising can get results in a "ro!otion blend. ?ood results are

obtained at a cost of course. The a!ount s"ent in the Dnites States for advertising

is gro9ing. ontinuously fro! :orld :ar II to 14 it 9ent fro! 1 billion to 5

bi ll ion.

(didas also s"ends nearly 2.4 !illion on its advertising throughout the 9orld.

(didas in India is s"ending al!ost 1 !illion on advertising.

The heavy 9eight "layers li%e Sachin Tendul%ar /eander Paes and $ahesh

6hu"athi are already attached 9ith their ad>ca!"aigns.

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PRICI.G:

(didas is clear it 9ants to beco!e the no. one s"orts brand in India a choice

brand for al l brands . So far so good but ho9 9ill it tac%le a "rice conscious !ar%et

li%e India

(didas feels that being a high energy business (didas introduces *> articles

every si& !onths G enables the brand to re!ain fresh and bring on an international

and Indians the brand fro! the "rice stand "oint.

Price that;s the !ost critical factor in the Indian conte&t. (didas believes it has to

deliver a functional at an affordable "rice. It;s a tough job G to !aintain the

integrity of the "erfor!ance and still co!e out 9ith a "roduct a right "rice "oint.

?lobally shoes start at 5. 6ut in India as the "erceived need is lo9er you have to

!a%e the "roduct !ore affordable.

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To tac%le this (didas ca!e out 9ith s"eed 2 a "roduct "riced at +s.445 9ith

the hel" of local and 8ong ong source "eo"le. (didas ho9ever feels that its just

the !atter of ti!e before India coverage;s the 9orld on this front. It is very

difficult to o"erate on a lo9er "rice "oint and !aintain integrity of "roduct but its

been barely 3 years since the s"or ts !ar%et has ta%en off.

(didas feels that as the volu!e go u" (didas 9ill try and 9or% out "rice "oints as

"eo"le graduate 9ith better unders tanding of Cual ity and "r ice "erce"tion.

Qolu!es are bound to go u". (didas started at the ti!e 9hen India had no strength

out in the s"orts "roducts !ar%et in 144 G 4. Its then licensing "artner 6ata and

it had li!itations of 9hat it could have "ut behind the brand. So co!"any too% the

ne&t best ste" 9hen the licensing agree!ent ended to ta%e a bigger share in

business .

To conclude 9e can say that (didas is "utting all efforts to bring do9n the "rice

consciousness in the Indian !ar%et. o!"any is trying to !a%e "roducts 9hich are

easy to afford and still !aintain the integrity of their "erfor!ance.

?ro9th has been "heno!enal for (didas even given the base is s!all. In 144

(didas gre9 by 25F 1444 by over 5F and this year (didas is e&"ecting !ore

than 5F in ter!s of value in both shoes and a""arel 9hile the industry gro9th as

a best case esti!ate has been 2>25F.

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M'R($TI.G &TR'T$G+ E '*I*'& "TH$R &TR'T$G+

(didas the brand 9ith three stri"es see!s to use the ele!ents of high>tension in

its ads. +e!e!ber the Sachin Tendul%ar co!!ercial 8o9 everything is near>

fro-en and the shattering glass signifies release. +elease of tension. (didas gives

you a chance to but the boundaries G in every s"here.

Only no9 the setting is not the "layground or the trac% or the court it is the urban

landsca"e G 9ith its o!ni"resent traffic ja!s cro9ded streets and so forth. This

9ay (didas beco!es a "art of life. (nyone;s life. Hou don;t have to be the high>

voltage "erfor!er to be a "art of the (didas fa!ily. (nd it goes beyond that G

(didas beco!es so!ething that !a%es you better. Not just as an athlete but as a

s"orts "erson a better hu!an being.

M'R($TI.G: '*I*'&

In 144 (didas beca!e (didas>Salo!on 9ith its DS 1.# billion "urchase of Salo!on a


36/82

$anning Paul Pal!er ,s9i!!er0 jan Dllrich ,racing cyclist0 and the Ne9 Hor% yan%ees.

)avid 6ec%ha! Patric% luivert and Ridane all 9ear (didas boots the Predator (ccelerator.

/7Q7+(?IN? ON S(8IN' ON7 $(=O+ P(+T O< $(+7TIN? ST+(T7?H ININ)I(

ontinuing its association 9ith tru!" card Sachin the local four>ad "rint ca!"aign tries to

connect (didas; "roduct attributes 9ith Sachin;s !agic. AInstead of "resenting just one

di!ensions '

The first ad connects Sachin;s choice of a heavy bat 9ith (didas;


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But the golden ;uestion is that =ill the -ampaign maled. Says anan' ASachin has

and 9ill "lay a !ajor role in "ushing the brand. 8e is i!"ortant as there are certain values a

consu!er needs to %no9 about (didas. 6ut after a certain duration 9e have to "resent a

global "ers"ective too and hence the and deliberately chose not to associated 9ith the :orld u". Instead

according to anan the ca!"aign has been bro%en no9 to coincide 9ith the "ea% season

,("ril>=une0. AThe :orld u" is incidental. It;s too large an event to !a%e significance for

usB says anan.

8o9ever the co!"any is !aintain a steady and do!inant "resence in the !edia during the

u"' stre9n over select channels li%e Star )iscovery and 7SPN are the Sachin ads

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http://images.google.co.in/imgres?imgurl=http://www.zappos.com/images/A/Adidas145/Adidas145wgnd.jpg&imgrefurl=http://www.zappos.com/n/p/dp/4164250/c/24435.html&h=240&w=240&sz=11&tbnid=wkP5ae8v6yYJ:&tbnh=104&tbnw=104&hl=en&start=70&prev=/images%25


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"ro!oting (didas. AStar Ne9s is delivering good value 9hile through )iscovery 9e can

catch the elite custo!erB anan says.

Qillota says that every style of foot9ear has a story "articularly those endorsed by star

athletes.

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TH$ '*I*'& /"G"

The ATrefoilB 9as ado"ted as the cor"orate logo in 142. It re"resents the heritage and

history of the brand. In 144* it 9as decided that the Trefoil 9ould only be used on heritage

"roducts. 7&a!"les of "roduct featuring the Trefoil logo include the Stan S!ith +oad /aver

(>15 9ar!>u" and lassic T>shirt.

$;uipment

The (didas 7Cui"!ent line 9as launched in 1441. This line of foot9ear and a""arel

re"resents the !ost uniCue and functional of (didas "roducts. 7Cui"!ent is the ulti!ate

e&"ression of 9hat is uniCuely "ossible by design 9hen for! follo9s function.

In =anuary 144* the Three>Stri"es brand !ar% beca!e the 9orld9ide (didas cor"orate logo.

This logo re"resents "erfor!ance and the future of the (didas brand. This logo is used in all

advertising "rinted collateral and cor"orate signage.

Since 14#4 the Three&tripes have been an integral "art of our brand and "roduct designs.

This trade!ar% has beco!e synony!ous 9ith (didas and its dedication to "roducing high>

Cuality athletic "roducts to hel" athletes "erfor! better.

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http://f/fr/


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R$&$'RCH

M$TH"*"/"G+

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RESEARCH METHD!"#

+esearch in co!!on "arlance refer to a search for %no9ledge one can also define research

as a scientific and syste!atic for "ertinent infor!ation on a s"ecific to"ics. In fact research is

an art of scientific investigation. +esearch !ethodology is a 9ay to syste!atically solve the

research "roble!. It !ay be understood as a science of studying ho9 research is done

scientifically .+esearch ai! to gain fa!iliarity 9ith a "heno!enon or to achieve ne9 insight

into it are ter!ed as e&"loratory or for!ulate research studies .

This research is e&"loratory in natureJ data 9as collected fro! various "ri!ary and secondary

sources. The choice of sa!"le sche!e 9as guided by the fact that a reasonable a!ount of

infor!ation 9as available and re"resenting true "icture of ASelf hel" grou" "roductsB.

$ffe-tie mar


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The first ste" in the scientific !ethods of research study is the research design.

Resear-h *esign

It is the "lan structure and strategy of investigation convinced so as to obtain ans9er to

research Cuestion. It is "urely and si!"ly the fra!e9or% or "lan for study that guides the

collection of analysis of data. It is a blue"rint that is follo9ed on co!"leting the study.

)esigning of a research "lan calls for decisions on the )ata sources +esearch a""roaches

+esearch instru!ents Sa!"ling "lan and ontact !ethods.

Sa!"le Dnit G custo!er

Sa!"le Si-e G

Sa!"le grou"s G Students


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*ata -olle-tion

)ata collection is a %ey activity of research. )ata collection !ethod is the bac%bone of

research designJ there are t9o ty"es of data G

0@ Primary data G "ri!ary data is a data gathered first ti!e by the researcher. Pri!ary data

can be collected through observational studies !ar%et surveys or e&"eri!ents.

6@ &e-ondary data G secondary data is the data collected by any other "erson other than the

researcher .the data collected !ay be internal or e&ternal. ollected data !ay be for the sa!e

"ur"ose or any other "ur"ose.

ee"ing in !ind the research objective the "roble! is to collect the relevant and

reCuired infor!ation. The infor!ation reCuired is a collection of coherent or relevant

nu!erical observations or events 9ith their relevance 9ith each other.

Colle-tion of se-ondary data

1. Qarious "ublications of foreign govt. or of international bodies and their subsidiary

organi-ations.

2. Technical and trade journals.

3. 6oo%s !aga-ines and ne9s"a"ers.

#. +e"orts and "ublications of various associations connected 9ith business and industry

ban%s stoc% e&changes and co!!odity e&changes etc.

5. +e"orts "re"ared by research scholars universities econo!ists etc. in different fields.

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*. Public records and statistics historical docu!ents and other sources of "ublished

infor!ation.

. $ain su""ort in data collection is "rovided by internet different 9ebsites related to Self

hel" grou" "roducts.

$>ploratory resear-h'

7&"loratory research studies are also ter!ed as for!ulative research design. The !ain

"ur"ose of such studies is that of for!ulating a "roble! for !ore "recise investigation or of

develo"ing the 9or%ing hy"othesis fro! an o"erational "oint of vie9. The !ajor e!"hasis in

such studies is on the discovery of ideas and insight.

Method used:

Sur$e%& Surveys are concerned 9ith describing recording analysing and inter"reting

conditions that either e&ist or e&isted. The researcher does not !ani"ulate the variable or

arrange for events to ha""en. Surveys are only concerned 9ith conditions or relationshi"s that

e&ist o"inions that are held "rocesses that are going on effects that are evident or trends that

are develo"ing. They are "ri!arily concerned 9ith the "resent but at ti!es do consider "ast

events and influences as they relate to current conditions. Thus in surveys variables that

e&ist or have already occurred are selected and observed.

7&"eri!ental research "rovides syste!atic and logical !ethods for ans9ering the Cuestion

A:hat 9ill ha""en if this is done 9hen certain variables are carefully controlled or

!ani"ulatedB In fact deliberate !ani"ulation is a "art of the e&"eri!ental !ethod. In an

e&"eri!ent the researcher !easures the effect of an e&"eri!ent 9hich he conducts

intentionally.

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+7SD/TS

(N)

INT7+P+7T(TION

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+7SD/TS (N) INT7+P+7T(TION

0@ *o you li


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6@ Dhat sports do you play in your leisure time

a0 ric%et

b0


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2. Dhat are the shoe brands you are a=are of

Interpretation:

It is found that !ost of the res"ondents a9are of (didas Ni%e and (didas and rest of theres"ondents a9are of S"eedo


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8@ Ho= do you rate the -ompany mar


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#. *o you thin< that the -ompany 'didas is giing its -ustomer =hat they =ant in

terms of ;uality and pri-es or alue for money

Interpretation:

Out of "eo"le * "erson are satisfy 9ith the Cuality and the "rice of the "roduct and other

says that they are not satisfy.

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9@ Dhat things you


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5@ If you hae to pur-hase shoe e>-ept 'didas =hi-h shoe it =ill be and =hy

Interpretation:

Out of "eo"le #2 have said Ni%e 23 said +eebo% and 15 others 9hich sho9s that the

!ain co!"etitor of (didas is Ni%e. They have given different reason for that so!e said

Ni%e and (didas are have sa!e range of "roducts and there Cuality and "rices is also

sa!e so different "eo"le have different o"inion.

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52%29%

19%

nike

reebok

others


54/82

. Dhat do you thin< that the -ompany 'didas must do to improe its mar


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'*I*'& : "%$R%I$D C"MP'.+,& !I.'.CI'/ !'CT&

of>the>art s"orts foot9ear a""arel and accessories. Today 9ith total net sales of +s. *

!illion (didas>Salo!on is a global leader in the s"orting goods industry and offers the

broadest "ortfolio of "roducts. (didas>Salo!on "roducts are available in virtually ever

country of the 9orld. Our strategy is si!"le' continuously strengthen our brands and "roducts

to i!"rove our co!"etitive "osition and financial "erfor!ance. The co!"any;s share of the

9orld !ar%et for s"orting goods is esti!ated at around 15 "ercent.

Internal $nironment 'nalysis

It is one thing to discern attractive o""ortunities and another to have the co!"etencies

to succeed in these o""ortunities. 7ach business needs to evaluate its Internal strengths and

9ea%nesses "eriodically. It can do so by using s for! li%e the one sho9n in the !ar%eting

$e!o Ahec%list for Perfor!ing StrengthL:ea%nesses (nalysisB. $anage!entor an

outside consultantrevie9s !ar%eting financial !anufacturing and organi-ational

co!"etencies and rates each factor as a !ajor strength !inor strength neutral factor !inor

9ea%ness or !ajor 9ea%ness.

learly the business does not have to correct all its 9ea%ness nor should it gloat about all

its strengths. The big Cuestion is 9hether the business should li!it itself to those

o""ortunities 9here it !ight have to acCuire or develo" certain strengths.

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Swot Anal%sis

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&D"T '.'/+&I& "! '*I*'&

&trengths:

The !ain strength of (didas is his Product Muality. The Cuality and the !aterial uses in

(didas is very good. The co!"any has a good brand i!age in the !ar%et the "ublicity and

the advertise!ent is also very good and lastly co!"any hold a healthily !ar%et share in the

!ar%et.

Dea


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co!"ete 9ith their co!"etitors and also the custo!er have !ore choices to choice the

"roduct fro!.

Threats:

(didas does not have strong distribution net9or% as co!"are to Ni%e and +eebo% in India.

Ni%e has !ore nu!ber of retail outlet then (didas and +eebo% has a uniCue distribution

net9or% the co!"any +eebo% not only use its outlet for the sale of their "roduct but also use

so!e other shoes co!"any outlet li%e A6ataB. In a 6ata sho9roo! u can find +eebo% shoes

and other "roducts. 6ut this is not a case 9ith (didas hence +eebo% has a e&tra advantage

over (didas.

Con-lusions:

()I)(S in IN)I( has al9ays been driven by its Qalue>for>!oney strategy. The co!"any

needs to identify critical success factory and 9or% assiduously to9ards achieving it

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Problems that -annot be &oled

(s the 9orld gro9s to beco!e one !any "roble!s 9ill arise that cannot be solved. One of

the "ri!ary challenges associated 9ith globali-ation is balancing conflicting and co!"eting

objectives. In the case of (didas it has faced such "roble!s already and ho9 they have dealt

9ith the! is 9ith fle&ibility and cal!ness. )es"ite 9hat could be higher costs (didas has

chosen to stic% 9ith their hu!an right codes and Standards of 7ngage!ent rather than

continue to be

associated 9ith subcontractors 9ho treat 9or%s in inhu!ane 9ays. (s (didas has gro9n

9orld9ide it has had to deal 9ith "roble!s of heterogeneity vs. ho!ogeneity. In other

9ords in an increasingly heterogeneous and global 9orld diversity in the 9or%"lace has

a""eared to e!erge as an issue. o!"anies including (didas are no longer ho!ogenous in

the sense that their co!"anies have gro9n 9orld9ide. (nd as a result (didas has had to

!a%e 9orld9ide headCuarters and "roduce infor!ation and "roducts in several different

languages. 8aving to s"read its 9or%force (didas has co!e to de"end on intangibles.

Measuring Intangibles J %aluing *iersity

The %no9ledge 9orld9ide e&"erience and diversity that an (didas e!"loyee can bring to the

table are valuable. +ecently ho9 successful co!"anies are in the global 9orld is

increasingly derived fro! intangibles such as these that organi-ations cannot o9n. (didas

is greatly affected by these e&ternal influences since indeed it is a global co!"any. This is a

result of good global business. (didas has created a "roduct that is global and 9ith that

diversity and %no9ledge greatly affect the co!"any. (didas !ust be able to easily ada"t to

different cultures and !ust be culturally a9are 9hen conducting business. The long list of

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(didas subsidiaries 9here it conducts business "roves that (didas is constantly ada"ting to

cultural changes and !ust be e&tre!ely diverse. 6ecause of this necessity %no9ledge is

greatly valued. ?reat changes occur in this industry and as a result ne9 ideas intuition and

ins"iration are an asset that is a necessity in this industry and to re!ain a global co!"any.

:ho leads this %no9ledge and !aintains diversity are the !anagers yet they too are facing

ne9 changes.

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Sales Anal%sis

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&'/$& '.'/+&I&

)uring the first Cuarter of 24 sales at (didas totalled 12 billion ru"ees. This is an

increase of 2.F fro! the 12 billion ru"ees in sales at the co!"any during the first Cuarter

of 2. )uring the "revious 1 Cuarters sales at (didas have increased co!"ared 9ith the

sa!e Cuarter in the "revious year.

Sales at (didas a""ear to have so!e seasonally' during each of the "revious 5 years sales

have been highest during the third Cuarter 9hich has accounted for bet9een 2.F and

32.F of the annual sales.

(didas re"orted sales of 32 billion ru"ees for the year ending )ece!ber of 2. This

re"resents an increase of 4.F versus 2 9hen the co!"any;s sales 9ere 32 billion

+u"ees. Sales at (didas have increased during each of the "revious five years ,and since

23 sales have increased a total of 22*F0.

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R$C$.T &'/$& 'T '*I*'&

2,igures in Rs1 3

,In 1 /ac0

In 2 sales in India 9ere u" at a rate that 9as !uch higher than the co!"any as a 9hole'

in this region sales increased 3*.F to 11 !illion +s. (didas also e&"erienced significant

increases in sales in (sia>Pacific.

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0

1

2

3

4

5

!

"

2003 2004 2005 200! 200" 200#

1$"%

2$!1

3$!2

5$4" !$0! !$53


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Competiti$e

4rand

5

Comparati$e Anal%sis

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/I&T "! C"MP$TITI%$ BR'.*& '.* C"MP'R'TI%$ '.'/+&I&

0@ .I($

6@ R$$B"(

8@ !I/'

2@ &P$$*"

4@ .$D B'/'.C$

9@ &($TCH$R&

5@ P)M'

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C"MP$TITI%$ '.'/+&I&

(didas is currently ran%ed third in al!ost every category in the global athletic shoe

industry. 8o9ever they ran% second only to Ni%e in ter!s of sales. The !ain co!"etitors of

(didas include Ni%e and +eebo% 8o9ever other s!aller co!"etitors include


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C"MP'R'TI%$ &T)*+ DITH R$$B"(

Reebo


69/82

and +eebo% o9ned distributors. reating innovative "roducts that generate e&cite!ent in the

!ar%et "lace has been a central cor"orate strategy ever since +eebo% introduced the u"s designed for it and 9o!an 9ho de!and and e&"ect the style of their gear to

reflect the attitude of their lives G cool and edgy authen as"irational. (s +b% is ins"ired by

today;s street fashion its !ar%eting needed to be culturally relevant as 9ell. ( ne9 global

!ar%eting ca!"aign called the ASounds and +hyth! of S"ortB 9as launched in =anuary

2# and it energi-ed industry by blit-ing the !ar%et 9ith +b% "roduct launches television

and "rint ads consu!er and retail "ro!otions and events.

The ASound and +hyth! of S"ortB global !ar%eting ca!"aign features +eebo%;s N6( Nho" and ra" artists. The

television s"ots sho9case the !oves and !otion of the athlete energi-ed by the rhyth! of the

artist;s !usic.

In this co!"arative analysis bet9een reebo% and adidas 9e have chosen three "roducts eachfro! the t9o brands and classified out their details.

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C"MP'R'TI%$ &T)*+ DITH PR"*)CT&

0@ C'T$G"R+: &H"$ AR$$B"(

Reebok and Unit Casual Shoe Men’s

,+elease )ate ' )ec. 12 2#0

Ite! No. ' 1314*

Price ' +s. 3*.5

,eatures&

Soft "ad

Su""le u""er bed

o!fort

Su""ort

$oulded 7Q( soc% liner

$oulded $idsole

ushion

8igh abrasion rubber outsole

Traction and durability

Style and design

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This street ins"ired foot9ear 9as designed for young "eo"le 9ho 9ant the style of their gear

to reflect the attitude of their life. This ?* lifestyle foot9ear "rovides clean court ins"ired

designs that !irror distinct style and flavor. +eebo% has consented to donate fifty cents of

"roceeds of each "air sold to charitable causes.

6@ C'T$G"R+ : &H"$ A'*I*'&

(didas su"ernova T>$( 3

Ite! no. ' 3*3*25

Price ' +s. #5.

!eatures:

o!fort

Soft and stretchable !esh

hugging inner bootie

O"ti!al cushioning su""ort

grain leather u""er 9ith stretch !esh

adidas forefoot cushioning

Shoc%>absorbing adidas heel

$oisture 9ic%ing anti!icrobial ortholite soc%liner

Non>!ar%ing carbon rubber outsole

Style and design

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This !odern classic is the choice of high level "rofessional "layers all around the 9orld. The

su"ernova T>$ac3 features the highest Cuality crafts!anshi" cou"led 9ith "ure "erfor!ance.

The adidas o"ti!i-es gri" on soft to very soft natural "laying surfaces and e&cellent feel and

fit.

.I($ :

C"MP'RI&". B$TD$$. R$$B"( G ).IT C'&)'/ &H"$ M$.& '.* '*I*'&

&)P$R."%' TM'C8 &H"$&

Reebo< 'didas .i


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!imitations

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/IMIT'TI".&

7ach re"orts has to have so!e li!itations and restrictions. 8ence the re"ort 9e have !ade

also have so!e li!itations regarding various as"ects of the re"ort

The /imitations are as follo=s:

Time

(s far as ti!e is concerned. There 9as no boundation of ti!e as sufficient ti!e 9as being

"rovided to all the students for this "roject re"ort. Ti!e 9as never a constrain in order to

co!"lete the "roject re"ort. 6ut 9e could have tried to !a%e re"ort !uch !ore better if 9e

9ould have little !ore ti!e because of the late availability of the e&ecutives of the concerned

co!"anies. :e got late a""oint!ent and due to 9hich I 9as not able to co!"ile re"ort in

ti!e :e 9as able to co!"lete the re"ort during the last days of the sub!ission of this re"ort

cost factor 9hich restricted !et to do anything !ore creative.

Mis-ellaneous

Though 9e have "ut !y very best efforts in !a%ing this "roject re"ort but because of so!e

unavoidable "roble!s and circu!stances 9e had to face lots of "roble!s. So!eti!es 9e

didn;t get the a""oint!ents 9ith the concerned co!"any;s e&ecutives 9hich further delayed

the "roject re"ort a bit.

Secondly all the reCuired infor!ation 9as not available to !e so 9e had to "ut e&tra efforts

in order to get that infor!ation. 6ut there could be so!e infor!ation 9hich is still !issing.

Therefore 9e reCuest the readers of the "roject re"ort to %indly forgive !e.

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Re+ommendations

5

Con+lusion

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R$C"MM$.*'TI".& J C".C/)&I".C".C/)&I".

Turbulent is the 9ord that a"tly describe the scenario in s"orts industry in last t9o last

financial years. 6y freCuent "rice cuts in !ar%et and larger than live $ar%eting ga!e "lans

co!"etition reached its ne9 highs and lo9s. It is no longer sufficient to just be co!"etitive.

( co!"any 9hich has to survive has got to have co!"etitive advantage. One needs to ta%e

strategic initiative in the short run to achieve the desired A"ositioningB in future. One has to

foresee to!orro9;.

)nderstanding -ompetition today inoles three leels:

o!"etition for intellectual leadershi" for ne9 ideas that create ne9 advantages.

o!"etition for translating these ideas into "roductLservice faster than others.

o!"etition for !ar%et share.

!ollo=ing tips are helpful in -ombating -ompetition:

)o not nature and P(+()I?$S because today Aanything is "ossibleB.

Search for ne9er !ar%ets than e&"anding your custo!er base.

o!e out 9ith state of the art feature "ac%ed affordable and co!"etitive

advantageous "roducts.

Set 6ench!ar%s for gro9th.

I!"rove u" on distribution channels for viable coverage of the !ar%et.

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:ear out co!"etition through trend setting ini!itable tactical !oves based on our

infrastructure strengths.

The strategic intent should be clear do9n the !anage!ent.

:or% on your strengths i.e. Infrastructure financial base bac%9ard integration.

POP and $7+8(N)ISIN? !aterial should be !ade as "er international !ar%et.

O+PO+(T7 T+(ININ? P+O?+($$7( for )evelo"!ent of !an"o9er fro!

e&ternal faculty.

:e have so far identified the various areas on 9hich ADIDAS and other !ajor s"orts

co!"anies need to i!"rove u"on to achieve the desired level of co!"etitiveness. These

i!"rove!ents 9ould give ()I)(S and the other s"orts co!"anies base to co!"ete 9ith the

$Ns and hel" the Indian co!"anies to reduce the i!"act of $Ns on the Indian $ar%et in

the future. Indian !anufacturers 9ill have to react Cuic%ly because any delay in reacting to

the threat "osed by the $Ns 9ould only give the $Ns ti!e to establish the!selves in the

!ar%et. :ith their e&"ertise and financial ca"acity they 9ould be nearly i!"ossible to

co!"ete 9ith once they get a fir! foot hold in the !ar%et.

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The future

6ut the battle has only started and the foreign s"orts co!"anies are here for the long ter!.

They can sustain losses for years to co!e in order to gain !ar%et share. :hat they are doing

at "resent is building u" distribution net9or%s to cover every noo% and corner of the country

and setting u" !anufacturing facilities.

Only those Indian !anufactures 9hich have a strong focus on !anufacturing and

technological u"gradation 9ill survive in the long run although 9ith a !uch s!aller !ar%et

share than they have at "resent. S!all co!"anies 9ill be sidelined totally and 9ill e&it fro!

the s"orts !ar%et altogether.

()I)(S in IN)I( has al9ays been driven by its Qalue G for>!oney strategy. The co!"any

needs to identify critical success factory and 9or% assiduously to9ards achieving it.

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BIBLIOGRAPHYBIBLIOGRAPHY

Web Sites

www.adidas.com

www.indiainfoline.com

www.webcrawler.com

www.google.com

www.indiatimes.com

Magazines

A&M

Business India

India Today

6usiness Today Ne9s"a"ers

The Times of India

The Hindustan Times

The Economic Times

Books:

• PHILIP KOTLER, MARKETING MANAGEMENT, NEW MILLENNIUM

EDITION

• V.S RAMASWAMY AND S. NAMAKUMARIMARKETING MANAGEMENT,

SECOND EDITION.

•RAVICHANDRAH.NCOMPETITION IN INDIAN INDUSTRY.

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Q)$&TI"..'IR$

1. Na!e>2. (ge>3. Occu"ation>#. No. of fa!ily !e!bers>5. (ddress>*. )o you li%e s"orts

,a0 Hes ,b0 No. If yes then 9hich s"orts do you "lay in your leisure ti!e

,a0 ric%et ,b0 branded

4. )o you have a9areness regarding these brands of shoes

,a0 (didas ,b0 Ni%e ,c0


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,a0 8a""y ,b0 Not ha""y13. :hat things you %ee" in !ind 9hile "urchasing shoes

,a0 Muality ,b0 (dvertise!ent

,d0 Price ,e0 )esign1#. If you have to "urchase shoe e&ce"t (didas 9hich shoe it 9ill be and 9hy

,a0 Ni%e ,b0 +eebo%

,c0 Others

15. :hat do you thin% that the co!"any (didas !ust do to i!"rove its !ar%eting

strategy

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Strategies on Adidas Marketing

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