MINOR PROJECT REPORT

ON

Marketing Strategies of “ADIDAS”

“Adidas Int. Pvt. Ltd.”

Submitted in partial fulfillment of the requirement of

Department Of Commerce (BCOM)
Maharaja Agrasen Institute Of Management Studies, Rohini

Under The Guidance of SUBMITTED BY:

Ms. TARANPREET KAUR DAKSH CHAUHAN
Enrollment No. 09714788823

Maharaja Agrasen Institute of ManagementStudies (14, Bold)

(A unit of Maharaja Agrasen TechnicalEducation Society) Af
filiated to GGSIPUniversity; Recognized u/s 2(f) of UGC
Recognized by Bar Council of India; ISO 9001 : 2015Certified Institution
Maharaja Agrasen Chowk, Sector 22, Rohini, Delhi-110086

SESSION: 2023-26

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 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the minor project titled “Adidas” is an academic work done by“

Daksh Chauhan” submitted in the partial fulfilment of the requirement for the award

of the degree of Bachelors of Commerce(honours) at

Maharaja Agrasen Institute of Management Studies, Delhi,under my guidance & dire

ction.

To the best of my knowledge and belief the data & informationpresented by him/her i

n the project has not been submittedearlier.

Signature:

Name of the Guide : Ms. TARANPREET KAUR

2
 DECLARATION

I hereby declare that the project report entitled “Marketing Strategies of Adidas”, is submitted

in partial fulfillment of the award for the degree of the Department Of Commerce to Maharaja

Agrasen Institute of Management Studies, Rohini is an original piece of my project work carried

out by me and the same has not been submitted to any other University for the award of any

degree, diploma, fellowship or any similar title.

Name: - DAKSH CHAUHAN

Enrollment No- 09714788823

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 ACKNOWLEDGEMENT

Special thanks to Ms. TARANPREET KAUR for making my project at Adidas a

memorable learning experience. For her learned guidance, constant inspiration,

keen interest and immense encouragement throughout the period of market

research. Her constant supports as well as the confidence, which she shown in me

helped me, hide over the difficulties.

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 PREFACE

I have made a research on marketing of Adidas by questionnaire method. The main

aim of my research is to find out that how Adidas hold to the market and what are

the areas in which Adidas can improve upon, in the questioner itself I have emphasis

on the marketing of Adidas and also about the current position of Adidas in market.

According to the response of my questionnaire, I have found that Adidas and Nike

are main competitors but Nike is more preferred brand then Adidas. This is mainly

for two reasons first Nike has more variety and good looks then Adidas and second

there outlets are more then Adidas so the company must work upon these two thing

to be the world number one.

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 Table of Contents

❖ Chapter 1 - Executive Summary

o Introduction 7-8

❖ Chapter 2 - Profile of the Company 9-12

o Products 13-19
o Financial facts 20

❖ Chapter – 3 Marketing Strategies 21-28

o Marketing mix 29-40
o Other important strategies 41-47
o Adidas logo 48-49

❖ Chapter – 4 Market Research

o Objectives 50
o Conducting marketing research 51
o SWOT Analysis 52-53
o Research and Methodology 54-55
o Limitations 56

❖Chapter – 5 Findings and Analysis 57-66

❖Conclusion 67-68
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❖Recommendation 69-71

❖ Bibliography 72-73

❖Annexure 74-75

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 Executive Summary

CHAPTER 1 – INTRODUCTION

My project topic is "Adidas" which is a shoe company and I am analyzing its

Marketing Strategy. I have chosen this particular topic mainly for two reasons.
Firstly, since my childhood days I had great interest in the shoes and I like to buy
new shoes as and when it comes in the market. The Shoe Company that I most
admire is Adidas. Secondly adidas grows as one of the best leading brand in the
shoes and other accessories which is admired by all types of generation. Hence I
have decided to do my project report on this company.

The Adidas mission has changed little since founder AdiDassler began making
sports shoes in the 1920s: to be the best sports brand in the world. The history of
Adidas is one of consistently meeting the evolving needs of the athlete. Focusing
more on function and less on fashion, Adidas strives to provide athletes with shoes
that can make a noticeable difference in their performance. Meeting athlete needs is
what makes Adidas the best. Adidas America has continued to build on this history.

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 AdiDassler. It offered moisture management,
thermal insulation, weather protection, ease of movement, and safety, helping the

8
athlete to perform more efficiently. After the successful creation and launch of
Adidas America

I have made a research on marketing of Adidas by questionnaire method. The main

aim of my research is to find out that how Adidas hold to the market and what are
the areas in which Adidas can improve upon, in the questioner itself I have emphasis
on the marketing of Adidas and also about the current position of Adidas in market.
According to the response of my questionnaire, I have found that Adidas and Nike
are main competitors but Nike is more preferred brand then Adidas. This is mainly
for two reasons first Nike has more variety and good looks then Adidas and second
there outlets are more then Adidas so the company must work upon these two thing
to be the world number one.

9
 Chapter 2 - Profile of the company

In the small German village of Herzogenaurach the world began its love affair with
Adidas (Ryno’s Company History). In 1920, Adolf “Adi” Dassler brought to life
those three little stripes. With his brother, Rudolph, Dassler manufactured his first
sports shoe, made for training, after realizing the need for performance athletic
shoes. In1948, the Dassler brothers separated to form their own two separate
companies. Dassler formed Adidas and his brother formed Puma, both headquarters
in Herzogenaurach.

The Adidas mission has changed little since founder AdiDassler began making

sports shoes in the 1920s: to be the best sports brand in the world. The history of

Adidas is one of consistently meeting the evolving needs of the athlete. Focusing

more on function and less on fashion, Adidas strives to provide athletes with shoes

that can make a noticeable difference in their performance. Meeting athlete needs is

what makes Adidas the best. Adidas America has continued to build on this history.

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,

10
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 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

Current executive board

▪ CEO Adidas-group: Bjørn Gulden

▪ Finance Adidas-group: Robin J. Stalker

▪ CEO Adidas brand: Bjørn Gulden

▪ Global Operations Adidas-group: Glenn S. Bennett

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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 DevelopmentCenter. 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

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related business activity. Adidas-Salomon AG has approximately 13,400 employees
worldwide.

Turnover and Brand Image

The turnover of Adidas company has grown to 23.21 Billion US dollar in 2023.

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 2020.

Future Plans

Turnover is expected to rise to 2.8 Billion US dollar for Adidas India in 2024 cash

breakeven is forecast during calendar year 2025 and an operating break even during

2026. The other Adidas – owned brands, Salomon Taylor made are expected to hit

Indian Adidas stores during 2025 and 2026.

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 PRODUCTS

Running

Adidas currently manufactures several running shoes, including the adiStar Control

5, the adiStar Ride (the replacement for the adiStar Cushion 6), the Supernova

Sequence (the replacement for the Supernova Control 10), and the Supernova

Cushion 7 (which will soon be replaced by the Supernova Glide), among others. In

addition, their performance apparel is widely used by runners. Adidas also uses

kangaroo leather to make their more expensive shoes

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Football (soccer)
One of the main focuses of Adidas is football kit and associated equipment. Adidas

also provides apparel and equipment for all teams in Major League Soccer. Adidas

remain a major company in the supply of team kits for international football teams.

Adidas also makes referee kits that are used in international competition and by

many countries and leagues in the world. In the United States, referees wear the

Adidas kits in MLS matches even though the primary referee supplier is Official

Sports. The company has been an innovator in the area of footwear for the sport

with notable examples including development of the Copa Mundial moulded boot

used for matches on firm dry pitches for almost forty years. The studded equivalent

was named World Cup follow in celebration of the 1978 tournament won by

Argentina, one of the nations it supplied at the time. Some of the most famous

football teams are currently sponsored by Adidas, such as Al-Shorta.

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Cricket

In the 1990s, Adidas signed the famous Indian batsman Sachin Tendulkar and made

shoes for him.]Tendulkar continues to wear Adidas shoes while playing matches.

Adidas even made action figures after SachinTendulkar.From 2008, Adidas also

sponsor the Bat used by Sachin Tendulkar. It created a new bat 'Adidas Master

Blaster' personalized for him.

In 2008, Adidas made their move into English cricket market by sponsoring English

batting star Kevin Pietersen after the cancellation of his lifetime deal

with Woodworm, when they ran into financial difficulties.]The following year they

signed up fellow England player Ian Bell,Pakistan opening batsman Salman

Butt and Indian Player RavindraJadeja. Having made cricket footwear for many

years, the company finally entered the field of bat manufacture in 2008 and their

products are available in the Incurza, Pellara and Libroranges.This bat is worth over

£1000.

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Adidas also manufactures the uniforms worn by both the England cricket team and

the Australian cricket team. Adidas signed partnership withCricket South Africa in

2011 and the uniforms worn by South African Cricket Team during and after Cricket

World Cup 2011 will be manufactured by Adidas.[23] They also sponsored

the South Korea national cricket team.

In the Indian Premier League (IPL), Adidas are the official apparel sponsor for the

teams Mumbai Indians, Delhi Daredevils and Pune Warriors

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Basketball

Adidas has been a longtime basketball shoe manufacturer and is one of the leading

basketball brands in the world. They are most famous for their iconic Superstar and

Pro Model shoes, affectionately known as "shelltoes" for their stylized hard rubber

toe box. These were made very popular in the 1980s hip hop streetwear scene

alongside Adidas' stripe-sided polyester suits.

Adidas is also the current outfitter of all 30 franchises in the National Basketball

Association (replacing the Reebok brand after the merger) and sponsors numerous

players past and present like Kareem Abdul-Jabbar and Tracy McGrady, as well

as Dwight Howard, Chauncey Billups, Derrick Rose, Eric Gordon, Michael

Beasley, Josh Smith and Tim Duncan. Adidas used to endorse Kobe Bryant with the

Adidas Equipment KB8 as his first signature shoe, and stopped endorsing him in

2003. The company also endorsed Kevin Garnett, until he opted out of his contract

in 2010; he is currently endorsing Anta. Lebron James also wore Adidas at high

school. Now he endorses Nike to date. Gilbert Arenas was an Adidas endorser until

the now-infamous gun incident last season; he is currently un-endorsed.

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Accessories

Adidas also designs and makes sandals, watches, eyewear, bags, baseball caps,

and socks.

As well, Adidas has a branded range of male and

female deodorants, perfumes, aftershave and lotions.

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 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 company’s share of the world market for sporting goods

is estimated at around 19 percent.

FINANCIAL DATA IN MILLION EUROS

Year 2006 2007 2008 2009 2010

Sales 10,084 10,299 10,799 10,381 11,990

EBITDA 1,078 1,165 1,280 780 1,159

Net results 483 551 642 245 567

Net debt 2,231 1,766 2,189 917 221

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 CHAPTER 3
MARKETING STRATEGIES

OVER VIEW 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

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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:

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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

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Price Decisions

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

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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

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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 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.

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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 women’s 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.

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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.

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 MARKETING-MIX

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

basic concept of how those needs should be met. This concept is then

presented to the design department.

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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.

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.

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A. As A BRAND

At Adidas –you have got to be sporty. At Adidas the brand award ing 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 won’t really be

a hot seller, but it will contribute a lot to Adidas brand image. That’s t he

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 specific 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.

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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 brand

image because that make us fashionable.

B. 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 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 involves—developing of the rightproduct – which can then be put to
right place & sold with the right promotion & price.

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VALUE OF IT’S 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 and

creative energy of many different people. If a company sell an automo bile,

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 don’t care how

they were made. Further they want that when they order something, the don’t

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 customer’s satisfactions or

benefits is very important. Adidas says that the total product is not just a

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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:

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

process. 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

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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 India’s 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.
35
To handle the company’s 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 company’s selling efforts.

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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 sales. They arrange

contest.

In order to motivate the employees of the company Adidas also prepares

training material for the company’s own sales force. They even design the

sales materials for the company’s 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.

Adidas also spends nearly $2.9 million on its advertising throughout the world.

Adidas in India is spending almost $17 million on advertising.

37
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, that’s the most critical factor in the Indian context. Adidas believes it

has to deliver a functional at an affordable price. It’s a tough job – to

maintain the integrity of the performance and sti ll 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 speed 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 coverage’s the world on this front.

It is very difficult to operate on a lower price point and maintain 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

38
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

licensing partner Bata, and it had limitations of what it could have put behind

the brand. So company took the next best step when the licensing agreement

ended to take a bigger share in business.

To conclude we can say that Adidas is putting all efforts to bring down the

price consciousness in the Indian market. Company is trying to make

products, which are easy to afford and still maintain the integrity of their

performance. Growth has been phenomenal for Adidas even given the base

is small. In 2002 Adidas grew by 25%, 2003 by over 50% and this year

Adidas is expecting more than 50% in terms of value in both shoes and

apparel, while the industry growth as a best case estimate has been 20 -25%.

39
 OTHER STRATEGY

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. Anyone’s life. You don’t

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 advertisement: The spot featuring Boldon, shows him chasing a

thief (who’d 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

40
able to. This is perhaps shown in an oblique way when the 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 wears Adidas. And

Adidas goes beyond athletic performance – it becomes everyday life. In stark

reality.Though humorously and light, it has a deep meaning.

41
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 Sachin’s magic. “Instead of

presenting just one dimension:

The first ad connects Sachin’s choice of a heavy bat with Adidas’ Falcon

Dorflightweight 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 company’s 1998 annual report :

“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.’
42
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, we’re not an attitude that’s fashionable. We’re 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 wasn’t connecting too well with its consumers.

But the golden question is that will the campaign make Adidas run?

43
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 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. It’s 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

44
the prices of its products. Says Kanan, “We don’t 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. “We’re looking at

driving the market through exclusive stores”. Says Kanan. The logic is clear: use

Forever Sport to ensure sales forever.

45
 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.

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.

46
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.

47
 CHAPTER 4

MARKETING RESEARCH

OBJECTIVES OF THE STUDY

 To study the marketing of Adidas and also about the current position of Adidas
in market

 To find out Adidas and Nike are main competitors but Nike is more preferred
brand then others.

To find out that how Adidas hold to the market and what are the areas in which

Adidas can improve.

48
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 by mail and also by direct contacts. The

Question I have asked are given in “questionnaire part” below.

49
 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

heathly market share in the market.

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 that’s 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.

Opportunities:
50
Adidas does have many products for the urban segment or poor people, but there are

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. and 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 rage of 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 use 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 a extra advantage over Adidas.

RESEARCH METHODOLOGY

STAGE ONE

51
The project study started with collection of Secondary Data. The sources for the

secondary data are as follows:

Data Sources

❖ News Papers
❖ Magazines
❖ Internet
❖ Press articles on Adidas.

Stage Two

I visited the Adidas India Ltd., which is located In Mehrauli (new Delhi). I Also Met

Some Of The Marketing Executives Who Helped Me Getting The Required

Information.

I Also Got Some Of The Information From The Other Resources Of The Corporate

Office Like

❖ Company Journals
❖ Company Catalogs
❖ Questionnaire (Structured & Non Disguised)
❖ And Other Related Sources.

Primary data:

52
I have prepared a questionnaire for the general public asking about the marketing

strategy of Adidas, in that particular questionnaire I have asked some question

give in finding and analysis section: (the questioner is filled by 80 people).

53
 LIMITATIONS

❖ The research project has been completed with ease and

comfortably. No particular limitation or shortcoming was realized

during the analysis.

❖ Also, due to time constraints, enough justice could not be done to

the project.

54
 CHAPTER 6
FINDINGS AND ANALYSIS
Company research report

(A) Company Description

Adidas-Salomon AG(ADIDAS). Production and marketing of sports equipment,

footwear and apparel under the brand names of Adidas, Salomon, Taylor Made and
Mavic. Sales of Footwear accounted for 45% of 2004 revenues; Sales of Apparel,
35% and Sales of Hardware, 20%.

(B) Competitor Analysis

Adidas-Salomon AG operates in the Men’s & boys’ clothing sector. This analysis
compares Adidas with three other sport shoe and apparel manufacturers: Nike Inc.
of the United States (2004 sales of $9 billion of which 59% was Footwear), Reebok
International Ltd. of the United States (2003 sales: $2.87 billion of which 73% was
Footwear), and Amer Group PLC which is based in Finland (2003 sales of 6.46
billion Finnish Markka [US$996.88 million] of which 24% was Racquet Sports).
Note: not all of these companies have the same fiscal year: the most recent data for
each company are being used.

55
(C) Sales Analysis

In 2008, sales growth in the adidas segment exceeded Management’s initial

expectations. Profitability developed in line with expectations. Currency-

neutral sales in the adidas segment increased 14%. In euro terms, segment sales grew

10% to € 7.821 billion in 2008 from € 7.113 billion in 2007. Gross margin increased

1.2 percentage points to a record annual level of 48.6% (2007: 47.4%). This was

mainly driven by an improving regional mix, further own-retail expansion and a

more favourable product mix. Gross profit grew 13% to € 3.802 billion in 2008

from € 3.370 billion in 2007. As a result of the positive gross margin development

and stable net other operating expenses and income as a percentage of sales,

operating margin increased 1.1 percentage points to 14.0% (2007:

12.9%). Operating profit increased 19% to € 1.098 billion in 2008

versus € 920 million in 2007.

adidas at a glance
€ in millions
2008 2007 Change

Net sales 7,821 7,113 10%

Gross profit 3,802 3,370 13%
Gross margin 48.6% 47.4% 1.2 pp
Operating profit 1,098 920 19%
Operating margin 14.0% 12.9% 1.1 pp

56
ADIDAS NET SALES BY QUATER

GROWTH

Adidas is a constantly growing company. It is global in scope with the majority of

its sales coming from Europe, followed by the United states, with the smallest

percent of Adidas’ sales coming from Asia. Adidas sales have grown significantly

each year from 1994 to the present. Adidas is the leading producer of sporting

goods in Europe and it is second in the overall world market, just behind Nike.

Nearly 55% of Adidas revenues come from Europe, while 37% come from the

Americas, and only 9% of revenues come from a growing Asian market.

For anyone not familiar with the structure of this company (since it is not based out

of the USA), it is much like US based competitor Nike. Adidas has stock traded on

exchanges in Frankfurtand Pairs, and its ticker symbol is ADDDY. The pie chart

57
below shows exactly how the ownership of the company is spread out across the

world. Most of the ownership comes from Europe, while a substantial 30% comes

from the United States, and the rest from Asia.

Asia
5%

US
Europe 30%
40%

UK
25%

Adidas is a growing company as stated above, but how much and how fast? As you

can see from the graph of net sales over the past five years, sales have grown rather

exponentially, although growth slowed in 1999. This growth in sales comes from

not only an improving world economy, but from Adidas’ marketing efforts to make

it one of the most popular sporting goods brands.

This shows that Adidas does not have a large market share in Asia as compare us

and Europe and my questionnaire (given below) also suggest that company can

improve a lot the certain areas are marketing distribution and competing with the

58
competitors. The company has to become innovator not follower they must do

something differently to come with the flying colors.

DATA ANALYSIS

1. How do u rate the company marketing strategy as compare to the other

competitors company like Nike, Reebok etc.?

Out of 80 people 36 had said Adidas have a good marketing strategy and should
continue like this only, 24 had said Nike is more better then Adidas, 16 said
Reebok is good and 4 said others.

others
5%

adidas
reebok nike
20% adidas
45% reebok
others
nike
30%

59
2. Do u think that the company Adidas is giving its customer what they want in
terms of quality and prices or value for money? Out of 80 people 68 person are
satisfy with the quality and the price of the product and other says that they are
not satisfy.

not happy
15%

happy not happy

happy
85%

60
3. Do u think that the advertisements and the brand ambassador of the
company is good enough?

Out of 80 people 66 person said yes they like the advertisement

very much and rest said no they don’t like them.

0%
18% happy
82% not happy

61
4. What things u keep in mind while purchasing shoes will it be quality,
advertisement, price or design?

Out of 80 people 69 person had said that the product must have good quality
and good design and other said they purchase these shoe for status symbol
only.

0%

14%

quality
other factor

86%

62
5. If u have to purchase shoe except Adidas which shoe it will be and why?

Out of 80 people 42 have said Nike, 23 said Reebok and 15 others, which
shows that the main competitor of Adidas is Nike. They have given different
reason for that some said Nike and Adidas are have same range of products
and th ere quality and prices is also same, so different people have different
opinion.

19%
nike
reebok
52%
29% others

63
5. What do u think that the company Adidas must do to improve its marketing
strategy?

Most of people said Adidas has a good marketing strategy but the company
should launch more products or u can say more variety to their products.

64
 CONCLUSION
ADIDAS in INDIA has always been driven by its Value-for-money strategy. The

company needs to identify critical success factory and work assiduously towards

achieving it.

As the world grows to become one, many problems will arise that cannot be solved.
One of the primary challenges associated with globalization is balancing conflicting
and competing objectives. In the case of Adidas, it has faced such problems already
and how they have dealt with them is with flexibility and calmness. Despite what
could be higher costs, Adidas has chosen to stick with their human right codes and
Standards of Engagement rather than continue to be associated with subcontractors
who treat works in inhumane ways. As Adidas has grown worldwide, it has had to
deal with problems of heterogeneity vs. homogeneity. In other words, in an
increasingly heterogeneous and global world, diversity in the workplace has
appeared to emerge as an issue. Companies, including Adidas are no longer
homogenous in the sense that their companies have grown worldwide. And as a
result, Adidas has had to make worldwide headquarters and produce information
and products in several different languages. Having to spread its workforce, Adidas
has come to depend on intangibles.

The knowledge, worldwide experience and diversity that an Adidas employee can
bring to the table are valuable. Recently, how successful companies are in the global

65
world is increasingly derived from intangibles, such as these, that organizations
cannot own. Adidas is greatly affected by these external influences since indeed it
is a global company. For some it is not common knowledge that Adidas is a German
company. This is a result of good global business. Adidas has created a product
that is global and with that diversity and knowledge greatly affect the company.
Adidas must be able to easily adapt to different cultures and must be culturally aware
when conducting business. The long list of Adidas subsidiaries where it conducts
business proves that Adidas is constantly adapting to cultural changes and must be
extremely diverse. Because of this necessity, knowledge is greatly valued. Great
changes occur in this industry and as a result, new ideas, intuition and inspiration are
an asset that is a necessity in this industry and to remain a global company. Who
leads this knowledge and maintains diversity are the managers, yet they too are
facing new changes.

66
 RECOMMENDATION

For 2004, the Adidas brand’s new divisional structure will be in place to start

delivering positive results for the Group. Adidas America will remain a challenge

but nevertheless will deliver qualitative sales improvements in the second half of

2005. Top-line growth is expected in all other regions. Double-digit growth from

Salomon is projected as a result of the continued innovative strength and the

increasing profile of their products. The integration of Mavic with Salomon, which

began in 2002, will continue in 2005, with further synergies between the two brands.

At Taylor Made-Adidas Golf, increased marketing and sales support will target

ambitious golfers, and solid growth in all the major golf markets is expected to

continue.

In addition to these positive top-line developments, gross margins are expected to

remain within a range of 41% to 43%, operating expenses will decline as a

percentage of sales, and as a result net income is projected to increase by 15%.

Adidas is currently ranked third in almost every category in the global athletic shoe

industry. However, they rank second only to Nike in terms of sales. The main

competitors of Adidas include Nike and Reebok However, other smaller competitors

include Fila, Puma and Easy Spirit. Adidas commands only 5% of the athletic shoe

business in the U.S., compared with the 40% for the fearsome Nike, but the

67
rejuvenated Adidas has climbed to within easy reach of Reebok, which has been

struggling in the past couple of years. Adidas is also steadily regaining market share

lost to other brands such as L.A. Gear and Fila (Fortune, 2000)

Since acquiring their current president, Louis-Dreyfus, Adidas, a wholly owned

subsidiary, has competed with a whole new strategy. Aside from cutting the whole

line of German senior management, Louis-Dreyfus also fired management in Asia,

who failed to match competitors’ low costs in subcontracting shoemaking to local

companies. While Louis-Dreyfus fought bring down costs, he also took a gamble

on the side. Adidas began to focus on global marketing.

But the battle has only started, and the foreign sports companies are here for the long

term. They can sustain losses for years to come in order to gain market share. What

they are doing at present, is building up distribution networks to cover every nook

and corner of the country and, setting up manufacturing facilities.

Only those Indian manufactures which have a strong focus on manufacturing and

technological upgradation will survive in the long run, although with a much smaller

market share than they have at present. Small companies will be sidelined totally

and will exit from the sports market altogether. ADIDAS in INDIA has always been

driven by its Value – for-money strategy. The company needs to identify critical

success factory and work assiduously towards achieving it.

68
 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.google.com

www.indiatimes.com

Magazines

A&M

69
 Business India

India Today

Business Today

Newspapers

The Times of India

The Hindustan Times

The Economic Times

From Company

Company Journals

Company Catalogs

70
 ANNEXURE
QUESTIONNAIRE

1. How do u rate the company marketing strategy as compare to the other

competitors company like Nike, Reebok etc.?

 Adidas  Nike

 Reebok  Others

2. Do u think that the company Adidas is giving its customer what they want in terms
of quality and prices or value for money?

 Happy  Not Happy

3. Do u think that the advertisements and the brand ambassador of the company is
good enough?

 Happy  Not Happy

4. What things u keep in mind while purchasing shoes will it be quality,

advertisement, price or design?

 Quality  Other factor

5. If u have to purchase shoe except Adidas which shoe it will be and why?

 Nike  Reebok
71
  Others

6. What do u think that the company Adidas must do to improve its marketing
strategy?

______________________________________________________

____________________________________________________

72