Escolar Documentos
Profissional Documentos
Cultura Documentos
ON
“MARKETING STRATEGIES OF
ADIDAS
1
ACKNOWLEDGEMENT
Last but not the least I am grateful to all those persons who were involved
with me in the project for their co-operation and support.
RAHUL ROHIT
2
TABLE OF CONTENTS
INTRODUCTION
MARKETING MIX
METHODOLOGY
SWOT ANALYSIS
SALES ANALYSIS
LIMITATIONS
BIBLIOGRAPHY
APPENDICES
3
Objectives
of the
Study
4
AIM/OBJECTIVES OF THE MARKET STUDY
product.
5
Introduction
6
INTRODUCTION
7
Brief History : In the small German village of
headquarters in Herzogenaurach.
8
The Adidas mission has changed little since founder Adi
9
of movement, and safety, helping the athlete to perform
of Adidas America
General Information
10
For over 80 years Adidas has been part of the India of
11
units Basketball, Adventure and Alternative Sports. The
worldwide.
12
Future Plans
and 2006.
1948
1949
13
1955
1972
1984
Dasslers’ first-born.
1987
1987
Jersey.
1988
Adidas is incorporated.
14
1989
1990
1993
1993
15
1994
1995
1997
1997
1997
2000
16
2005.
Sale of Salomon
17
THE TECHNOLOGY TIME LINE OF THE COMPANY
1925
with hand forged spikes are produced for the first time in
1928
Late 1920s
1929
1930
1931
1935
18
400 pairs of shoes are being produced daily.
1937
1946
1940’s
of speed lacing.
19
1948
1949
studs.
1950
1953
spikes.
1953
1954
20
enable the game to be played under vastly different
1954
1956
1957
soles.
1960
1963
thread inserts.
1964
provide flexibility.
21
1964
1967
tendon.
1967
1968
polyurethane soles.
1968
the market.
1968
1972
22
1973
1973
surfaces.
1974
1974
1975
1976
1976
23
1977
1979
sports shoes.
1979
1982
1985
24
1986
1988
market.
1991
1993
1994
25
1995
1995
impact.
1996
human foot.
1999
to reduce drag.
26
2003
wet environments
2006
block wind, rain and snow while allowing heat and sweat
27
FOOTWEAR TECHNOLOGIES
adiPRENE
28
adiprene
efficiency.
torsion
Traxion
Lugs in shoe bottom provide optimal ground
surface contact.
29
Meets the specific needs of different sports and
surfaces.
Pro-Moderator
Usage of TPU as lightweight mid-sole support system
GeoFit Frame
areas.
ultimate fit.
30
It eliminates the internal heel counter by extending the
reducing weight.
Quickstrike
performance.
adiwear
material.
adiTUFF
31
Define
the
Market
32
Define the Market
are as follows :
important.
33
• How much demand there is for what you hope to sell
34
Conducting market research
There are number of ways in which you can carry out your
this choice and what you hope the evidence will suggest
to you.
35
The Marketing Mix (The 4 P's of Marketing)
controllable categories:
• Product
• Price
• Place (distribution)
• Promotion
36
these ingredients into the four categories that today are
37
Product Decisions
decisions to be made:
• Brand name
• Styling
• Quality
Price Decisions
• Price flexibility
• Price discrimination
38
Distribution (Place) Decisions
• Distribution channels
distribution)
• Warehousing
• Distribution centers
• Transportation
Promotion Decisions
39
• Advertising
• Sales promotions
The Company
40
holding 80% of the equity and Magnum holding the
magnum.
India.
Feet You Wear, Torsion system and adi wear. The sports
41
categories such as adventure, basketball cricket, golf,
wear for both men and women. These include apparel for
distributors.
outlets in India.
42
Marketin
g Mix
43
MARKETING-MIX ( FOUR P’S): ADIDAS
THE PRODUCT:
store.
44
.
45
46
HOW DO ADIDAS CREATE ITS PRODUCTS
function.
marketing department.
47
following is a general outline of how we create our
performance-based products.
prototypes.
48
5. Three separate groups – marketing, design and
the prototype.
A. As A BRAND
India.
49
What that kind of stuff got to do with Indian market?
50
The idea of the company is to introduce performance
related.
51
B. Words of G. Kannan (Director – Marketing)
by this factor”.
52
body building, strengthening & toning. This is
sports image:
ADIDAS SAYS –
which can then be put to right place & sold with the right
53
54
VALUE OF IT’S PRODUCTS FOR ADIDAS
55
They just want their package. That means for them
A: Place
56
marketing specialists who are taking care of the
and process.
only.
B: Physical distribution
57
TRUCKS
PROMOTION:
58
Adidas believe that it just cannot be taken lightly. It is a
59
As per Adidas the marketing managers promotion job is to
Sales Promotion
60
STEPS THAT ADIDAS TAKE TO PROMOTE SALES
contest.
ADVERTISING
61
advertising is growing. Continuously, from World War
62
PRICING:
like India?
stand point.
63
Hong Kong source people. Adidas however feels that
64
To conclude we can say that Adidas is putting all
been 20-25%.
STRATEGY
65
Only now, the setting is not the playground or the
set when its owner was in the bath) through the dark
66
One is wearing a pair of Adidas shoes while the other
meaning.
MARKETING: ADIDAS
and other sporting goods. The deal put Adidas one step
golf club brand Taylor Made and cycle brand Mavic. The
67
Salomon is currently very strong in North America and
68
The second new shoe range to be introduced for the first
leather version).
Cup, we could not have wished for more. These were great
69
Adidas has reached an agreement with ISL Marketing G of
since 1928) that Adidas has with sport in all of its forms.
70
Interestingly, the new brand line has been introduced
71
But the golden question is that will the campaign
72
Interestingly, Adidas claims that it did not want to be
channels like Star, Discovery, and ESPN are the Sachin ads
that takes pride in not joining the price brawl, Adidas does
73
lowering the price. We are willing to wait for the market to
evolve.”
Kanan
74
Further, Adidas is planning to add 30 new stores this
by star athletes, and it’s these stories that sell the shoes
to buyers.
75
Meeting of Shareholders on May 10, the same amount as
Equipment
76
In January 1996, the Three-Stripes brand mark became the
signage.
perform better.
77
Methodolo
gy
78
METHODOLOGY
STAGE ONE
Data Sources
News Papers
Magazines
Internet
Stage Two
Information.
79
We Also Got Some of The Information From The Other
Company Journals
Company Catalogs
Primary data:
80
Findings
and
Analysis
81
FINDINGS & ANALYSIS
82
have the same fiscal year: the most recent data for each
83
QUESTIONNAIRE
a) Cricket
b) Football
c) Golf
d) Jogging
e) Lawn tennis
f) Skiing
g) Swimming
h) Others
50 50
45
40
35
30
25
20
15
10 10 10 10
5 5 5 5 5
0
Golf
Football
Jogging
Skiing
Others
Tennis
Cricket
Swimming
Lawn
84
In the analysis it is found that 50% of the respondents play
others 10%.
25 25 25 25
20
15
10
5 5 5 5 5 5
0
sketchers
Adidas
Reebok
Nike
Newbalance
Speedo
Fila
Puma
85
3. How do you rate the company marketing
others
5%
reebok adidas
20%
nike
adidas
45% reebok
others
nike
30%
86
4. Do you think that the company Adidas is giving
the price of the product and other says that they are not
satisfy.
happy
not happy
not happy
15%
happy
not happy
happy
85%
87
5. Do you think that the advertisements and the
enough?
like them.
18% 0%
happy
not happy
82%
88
6. What things you keep in mind while purchasing
design?
have good quality and good design and other said they
0%
14%
quality
other factor
86%
89
7. If you have to purchase shoe except Adidas
19%
nike
52% reebok
others
29%
90
8. What do you think that the company Adidas must
91
ADIDAS : OVERVIEW / COMPANY’S FINANCIAL FACTS
percent.
92
“Checklist for Performing Strength/Weaknesses Analysis”.
weakness.
93
“engineers who couldn’t make it”, and the salespeople
94
Swot
Analysis
95
SWOT ANALYSIS OF ADIDAS
Strengths :
market.
Weakness:
in India.
96
eradicated then the company may earn high profit and
Opportunities:
97
Threats:
only use its outlet for the sale of their product but also use
Conclusions :
98
Problems that cannot be Solved
99
spread its workforce, Adidas has come to depend on
intangibles.
100
and as a result, new ideas, intuition and inspiration are an
diversity are the managers, yet they too are facing new
changes.
101
Sales
Analysis
102
SALES ANALYSIS
103
RECENT SALES AT ADIDAS
(Figures in Rs. )
(In 10 Lac)
6.06 6.53
5.47
8
6 3.62
2.61
4 1.79
0
1999 2000 2001 2002 2003 2004
104
Competitive
Brand
&
Comparative
Analysis
105
LIST OF COMPETITIVE BRANDS AND
COMPARATIVE ANALYSIS
1. NIKE
2. REEBOK
3. FILA
4. SPEEDO
5. NEW BALANCE
6. SKETCHERS
7. PUMA
106
COMPETITIVE ANALYSIS
The future
But the battle has only started, and the foreign sports
companies are here for the long term. They can sustain
107
networks to cover every nook and corner of the country
108
COMPARATIVE STUDY WITH REEBOK
Reebok
“Chariots of Five”.
109
aerobic dance. The shoe was called Freestyle, and with it
110
concepts and technologies for a host of sports and fitness
activities.
artist’s music.
111
In this comparative analysis between reebok and adidas,
112
COMPARATIVE STUDY WITH PRODUCTS
Features :
Soft pad
Comfort
Support
Moulded Midsole
Cushion
113
Style and design
114
CATEGORY : SHOE (ADIDAS)
Features
Comfort
115
This modern classic is the choice of high level professional
fit.
NIKE :
SHOES
116
Foot hugging inner bootie × √ ×
Moisture-wicking, antimicrobial √ √ √
ortholite sockliner
Carbon rubber outsole √ √ ×
Fore foot cushioning × √ ×
Shock absorbing heel √ √ √
Style and design √ √ √
117
Limitations
118
LIMITATIONS
Time
119
Though I had tried my level best to reduce the possibility
Miscellaneous
120
Recommendati
ons &
Conclusion
121
RECOMMENDATIONS & CONCLUSION
foresee ‘tomorrow’.
levels:
122
Following tips are helpful in combating competition:
“anything is possible”.
customer base.
strengths.
management.
123
POP and MERCHANDISING material should be made
The future
124
But the battle has only started, and the foreign sports
companies are here for the long term. They can sustain
market altogether.
125
Bibliograph
y
126
BIBLIOGRAPHY
Web Sites
www.adidas.com
www.indiainfoline.com
www.webcrawler.com
www.google.com
www.indiatimes.com
Magazines
A&M
Business India
India Today
Business Today
127
Newspapers
Books:
MILLENNIUM EDITION
FUNDAMENTAL OF MANAGEMENT.
INDUSTRY.
128
Appendice
s
129
7APPENDICES
Agenda
2007.
2007.
Abstentions No
130
Payment of a dividend of EUR 0.92 per no-par-value share
new account.
1.432 No
131
578.504 Abstentions
retired in 2003.
1,272 NO
578.574 Abstentions
22.375 NO
556.884 Abstentions
132
The Supervisory Board is composed in accordance with
Meeting to elect.
9 5
Property, plant and 377,865 310, 068 21.9
133
equipment, net
Goodwill, net 580,069 601,028 (3.5)
Other intangible assets, net 91,131 77,633 17.4
Deferred tax assets 147,873 131,063 12.8
Other non-current assets 107,760 112,643 (4.3)
Total non-current assets 1,304,69 1,232,43 5.9
8 5
Total assets 4,182,87 4,018,46 4.1
7 0
Short-term borrowings 196,038 279,422 (29.8)
Accounts payable 629,701 532,299 18.3
Income taxes 111,020 76,318 45.5
Accrued liabilities and 346,876 390,250 (11.1)
provisions
Other current liabilities 110,040 90,388 21.7
Total current liabilities 1,393,67 1,368,67 1.8
5 7
Long-term borrowings 1,569,773 1,617,370 (2.9)
Pensions and similar 92,088 85,021 8.3
obligations
Deferred tax liabilities 41,552 31,748 30.9
Other non-current liabilities 13,019 10,570 23.2
Total non-current 1,716,43 1,744,70 (1.6)
liabilities 2 9
Minority interests 58,157 89,750 (35.2)
Shareholders' equity 1,014,613 815,324 24.2
Total liabilities, minority 4,182,87 4,018,46 4.1
134
interests and 7 0
shareholders' equity
Rounding differences may arise in percentages and totals
135
ADIDAS-SALOMON CONSOLIDATED STATEMENT OF
2007 2006
Operating activities:
Income before taxes 376,344 346,620
Adjustments for:
Depreciation and amortization (incl. 148,037 132,704
goodwill)
Unrealized foreign exchange losses, net 15,277 7,616
Interest income (12,061) (12,979)
Interest expense 107,772 108,517
Gains on sales of property, plant and (4,063) (4,440)
equipment, net
Operating profit before working 631,306 578,038
capital changes
Increase in receivables and other current (128,157) (115,767)
assets
Decrease/ (Increase) in inventories 32,165 (230,394)
Increase in accounts payable and other 71,161 8,014
current liabilities
Cash provided by operations 606,475 239,891
Interest paid (110,400) (105,313)
Income taxes paid (112,015) (144,993)
Net cash provided by/(used in) 384,060 (10,415)
operating activities
Investing activities:
136
Purchase of goodwill and other intangible (42,338) (24,562)
assets
Purchase of property, plant and (159,733) (124,815)
equipment
Proceeds from sale of property, plant and 23,293 14,141
equipment
Acquisition of subsidiaries net of cash (19,519) 0
acquired
Decrease in investments and other non- 9,300 1,808
current assets
Interest received 12,061 12,979
Net cash used in investing activities (176,936 (120,449)
)
Financing activities:
(Decrease)/Increase in long-term (47,667) 132,967
borrowings
Dividends of adidas-Salomon AG (41,721) (41,736)
Dividends to minority shareholders (51,349) (2,692)
Capital contributions by minority 0 4,970
shareholders
(Decrease)/Increase in short-term (88,283) 71,517
borrowings
Net cash (used in)/provided by (229,020 165,026
financing activities )
137
Effect of exchange rates on cash 2,185 1,436
(Decrease)/Increase in cash and cash (19,711) 35,598
equivalents
Cash and cash equivalents at beginning 104,706 69,108
of year
Cash and cash equivalents at end of 84,995 104,706
year
138