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CHAPTER 1

INTRODUCTION
INTRODUCTION TO THE STUDY

My project topic is "Adidas" which is a shoe company and I am analyzing the consumers
perception towards the shoes. 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 Adolf Dassler 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.

In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing company
founded by former Nike executives Rob Strasser and Peter Moore. Sports Inc. had been working
in conjunction with Adidas USA on the design, development, and marketing of the Adidas
Equipment line. This line helped rejuvenate and reposition the Adidas brand in the United States
by creating an exclusive line focused on fulfilling the functional needs of the athlete and by
utilizing the best materials and athlete input in the tradition of Adi Dassler.

A research on Adidas was made by questionnaire method. The main aim of this research is to
find out that how market positions adidas. In the questionnaire, emphasis is on the perception
about 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 than Adidas so the company must work
upon these two thing to be the world number one.
OBJECTIVES OF THE STUDY

To study the perception of people in terms of price, quality provided by


ADIDAS.

To study the awareness level among consumers towards Adidas.

To study about the current position of Adidas in market.


RESEARCH METHODOLOGY

Adidas outlets were visited, which are located in South Delhi. Some Of the Marketing
persons also Helped in Getting The Required Information.

Some Of The Information From Other Resources Of The Corporate Office Like:

Company Journals

Company Catalogs

Questionnaire (Structured & Non Disguised)

And Other Related Sources.

Primary data:

A questionnaire for the general public was prepared asking about the consumer perception
towards Adidas. In that particular questionnaire, some questions given in finding and analysis
section were asked: (the Questionnaire is filled by 100 people).

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. Two type of survey methods,
questionnaire and mail survey were used. Some questions were asked about
the company by mail and also by direct contacts. The Questions asked are
given in questionnaire part below.

The sources for the secondary data are as follows:

Secondary Data

News Papers

Magazines

Internet

SAMPLING METHODOLOGY

Sampling Technique: Random Sampling

Sampling Area : Vasant Vihar

Sample Size: 100


LIMITATIONS

The research project has been completed with many difficulties like the
company privacy.

Also, due to time constraints, enough justice could not be done to the
project.

The customer could be biased while answering the questions.


CHAPTER 2

PROFILE OF THE ORGANISATION


COMPANY PROFILE

In the small German village of Herzogenaurach, the world began its love affair with Adidas
(Rynos 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 Adi Dassler 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 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
GENERAL INFORMATION

For over 83 years Adidas has been part of the world of sports on every level, delivering state-of-
the-art sports footwear, apparel and accessories. Today, with total net sales of 6.1 billion and net
income of 208 million, Adidas - Salomon is a global leader in the sporting goods industry and
offers the broadest portfolio of products. Adidas-Salomon products are available in virtually
every country of the world. Our strategy is simple: continuously strengthen our brands and
products to improve our competitive position and financial performance.

The company's share of the world market for sporting goods is estimated at around 15 percent.

Activities of the company and its approximately 100 subsidiaries are directed from Adidas-
Salomon AG's headquarters in Herzogenaurach, Germany. Also located in Herzogenaurach are
the strategic business units for Running, Soccer and Tennis as well as the Research and
Development Center. Additional key corporate units are based in Portland, Oregon in the USA,
the domicile of Adidas America Inc. and home to the strategic business units Basketball,
Adventure and Alternative Sports. The strategic business unit Golf is based in California. The
business unit Winter Sports is in Annecy, France. The company also operates design studios and
development departments at other locations around the world, corresponding to the related
business activity. Adidas-Salomon AG has approximately 13,400 employees worldwide.

TURNOVER & BRAND IMAGE


The turnover of Adidas has grown to 16 Million US dollar in 2010-2011. 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 2011.
MARKETING: ADIDAS

In 1997, Adidas became Adidas-Salomon with its US $1.4 billion purchase of Salomon, a French
manufacturer of skis and other sporting goods. The deal put Adidas one step closer to competitor
and world market leader Nike, and one step ahead of Reebok.

Salomon, aside from its winter sport equipment, also owns golf club brand
Taylor Made and cycle brand Mavic. The merger makes Adidas/Salomon the
second largest sport marketer in the world, and number one in Europe.
Salomon is currently very strong in North America and Japan, and Adidas has
the largest market share in Europe.

Adidas is, like Nike, very active insuring sponsorships advertising deals with
celebrities. Some of the most famous are Martina Hingis (tennis), Kobe
Bryant (basketball), Peyton Manning, Paul Palmer (swimmer), jan Ullrich
(racing cyclist) and the New York yankees. David Beckham, Patrick Kluivert
and Zidane all wear Adidas boots, the Predator Accelerator.

Continuing its association with trump card Sania Mirza, the local four-ad print campaign tries to
connect Adidas product attributes with Sania Mirzas magic. Instead of presenting just one
dimension:

The first ad connects Sania Mirzas choice of Adidas Falcon Dorf light weight shoes.

The second new shoe range to be introduced for the first time in India. Sub-branded Aksu and
priced at Rs 2,299, these are athletic sandals primarily meant for water-based adventure sports.
Finally, The next ad will convey that Adidas covers various price points by promoting its existing
Portland range priced at Rs 1,499 and 1,799 (the leather version).
The importance of celebrity sponsorship and events to Adidas is illustrated
by Robert Louis-Dreyfus letter in the companys 1998 annual report:

When it comes to showcasing our brands, 1998 was truly exceptional. Early
in the year, the Winter Olympics focused the attention of sports enthusiasts
on Nagano. In summer, the Soccer World Cup in France attracted more
spectators than any single sports event before. When the

French team, promoting the three stripes, won the World Cup, we could not
have wished for more. These were great times for our brand.

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


become an official sponsor of the 2000 UEFA European Championships.
Adidas will have access to the official emblems, mascot and trophy for the
design of its own products.

In 1998, the overall Adidas budget for promotion and sponsoring accounted
for nearly 15% of turnover.

The positioning is being communicated through its global campaign-released


worldwide in February 1999 but in India, only in May-as well as through a
four-ad print campaign developed locally by RK Swamy / BBDO. Says G
Kanan, general manager, marketing, Adidas: We are the only brand with
heritage in sports. As a brand, were not an attitude thats fashionable. Were
an attitude that is relevant all the time.

The campaign also introduces a new brand line for Adidas: Forever Sport.
The line sums up the deeply-felt and long-term love affair (it has been
involved with sports since 1928) that Adidas has with sport in all of its forms.
Interestingly, the new brand line has been introduced almost after a decade,
when it was using Earn your stripes as its tag-line. The company dropped it
during the late 80s after it found that it wasnt connecting too well with its
consumers.

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

The company expects the campaign to strengthen the image of the brand since research had
indicated that neither of the three multinational sports shoe brands present in India had a clear
image: most were perceived as diffused brands and personality-led. Says Kanan: Sania Mirza
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 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 associate with the World Cup. Instead, according to
Kanan, the campaign has been broken now to coincide with the peak season (April-June). The
World Cup is incidental. Its too large an event to make significance for us, says Kanan.

However, the company is to maintain a steady and dominant presence in the media during the
Cup: strewn over select channels like Star, Discovery, and ESPN are the Sania Mirza ads
promoting Adidas. Star News is delivering good value while through Discovery, we can catch
the elite customer, Kanan says.

Although Kanan admits that the sports shoe and apparel market is at a nascent stage, he claims
that Adidas has grown by over 250 per cent from last year. As a company that takes pride in not
joining the price brawl, Adidas does not intend to bring down the prices of its products.
For Adidas, the real breakthrough, says Kanan, has come through a combination of strategies:
signing on Sania Mirza, Leander Paes and Mahesh 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.
We have built-in value pricing in our products, and supported them through sports icons who
are looked up to. We have realized that to have just one good guy endorsing your brand is more
important than having several unknown faces, says Kanan

The company is enlarging the scope of its business by concentrating on apparel. Apparel is
driving the business. Most consumers start experimenting with the brand through apparel,
admits Kanan. Essentially perceived as a male brand, Adidas however defends its range by
pointing out that currently it has 50 items out of a total of 250, for women.

Further, Adidas is planning to add 30 new stores this year. Were looking at driving the market
through exclusive stores Says Kanan. The logic is clear: use Forever Sport to ensure sales
forever.

Never achieved profitability and collapsed under the weight of its own unrealized
ambitions.

Adidass objective with the new line of footwear is to generate sales leads through its Web site,
either through direct purchase or a retailer finder. Villota says that every style of footwear has a
story, particularly those endorsed by star athletes, and its these stories that sell the shoes to
buyers.

While Villota wouldnt disclose how much of Bryants Adidas footwear is sold online, he did say
one of three visitors to the Bryant portion of the Adidas site demonstrated purchase intent by
clicking through to the store or to the retail finder.

The newest version of Bryants footwear hits the street Nov. 1, coinciding with the start of the
2005-2006 NBA season. While Adidas wont comment on the new sites features, citing
competitive pressure, Villota says it is Adidas Americas most ambitious integration of Web
content and electronic marketing.
The Adidas - Salomon Executive Board will propose paying a dividend of CC 0.92 per share to
the Annual General Meeting of Shareholders on May 10, the same amount as in the previous
year. This decision to maintain a stable dividend level, despite the EPS decline in 2006,
underlines Managements confidence in its ability to achieve its 2007 targets. Management views
2006 as a year of consolidation and restructuring and has increased the payout percentage to
reward long-term shareholders.

THE ADIDAS LOGO

The Trefoil was adopted as the corporate logo in 1972. It represents the
heritage and history of the brand. In 1996, it was decided that the Trefoil
would only be used on heritage products. Examples of product featuring the
Trefoil logo include the Stan Smith, Road Laver, A-15 warm-up, and Classic T-
shirt.

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-Striped brand mark became the worldwide Adidas corporate logo.
This logo represents performance and the future of the Adidas brand. This logo is used in all
advertising, printed collateral and corporate signage.

Since 1949, the Three-Stripes have been an integral part of our brand and
product designs. This trademark has become synonymous with Adidas and
its dedication to producing high-quality athletic products to help athletes
perform better.

MARKETING MIX OF ADIDAS

One of the top brands in the sports and footwear market, Adidas has seen its share of ups and
downs. The company started in 1936 and is one of the oldest footwear brands of the world.
However, even though the company has old origins, its heart is young. Adidas faced stiff
competition in the 1980s from Nike but soon overcame the competition by targeting youngsters
as well as sports oriented people.
This article will focus on Adidas only and not on the other subsidiarys of Adidas group. Here is
the marketing mix of Adidas.

Products in the marketing mix of Adidas


The Adidas group has 4 main subsidiarys. The first is its own brand name Adidas, which is
present in clothes as well as footwear. The second is Reebok which has overtaken Adidas and is
one of the leading subsidiarys in the Adidas group. The 3rd is Rockpot which specializes in
outdoor footwear, apparels and accessories and 4th is Taylor made which is focused on golfing
clothes, equipment etc. Out of all the above subsidiarys, Reebok is the strongest followed by
Adidas.

Adidas has various products. The major product of Adidas is off course their footwear. Coming
in various design and style, Adidas footwear is robust and athletic. The secondary product of
Adidas is apparels and accessories. Apparels like T-Shirts, jackets, sweatshirts, shorts etc are in
great demand. Where Reebok is stronger in footwear, Adidas is stronger in apparels.
The aim of Adidas is to give the best footwear to their customers which has the combination of
technology and design. These products are not need based. In fact, the shoes are bought by
customers to satisfy their wants and desires. Similarly, the apparels are targeted towards comfort

during heavy activity. However, although the main target is sports, the apparels are frequently
used as a style statement by youngsters.

Pricing in the marketing mix of Adidas.

Adidas, because of its style, design and promotions uses skimming prices as well as competitive
pricing. For run of the mill products, Adidas uses competitive pricing keeping in mind
competitors like Nike, Reebok and Puma. But for products which are newly introduced in the
market and are uniquely designed, Adidas uses skimming price.
Apparels of Adidas constantly use skimming price and are higher priced due to brand equity of
Adidas in the apparels market. The target customer for Adidas is the upper middle class as well
as high end customers. Adidas never uses penetrative pricing because that will affect the brand
equity of Adidas. In fact, the higher price point helps in the price quality approach and
psychologically, customers think that a higher price will mean better quality as well. Thus,
Adidas rarely drops its prices.

Place in the marketing mix of Adidas


The major areas in which Adidas is sold is through retail outlets. Adidas has its own exclusive
stores in which the material is provided directly from the company. On the other hand, many
multi brand showrooms will also have Adidas apparels and footwear on display. These multi
brand showrooms get the products from a distributor. The third and last mode of distribution is
online. The products are sold through online medium via fashion stores lie myntra.com as well as
the online website of Adidas. Thus the distribution channel of Adidas is as follows :
Manufacturing > Adidas outlets > End customer
Manufacturing > Distributor > Multi brand showrooms
Manufacturing > Online fashion websites / Adidas website > End customer

Due to the excellent brand equity of Adidas, the operating margins are fairly high thereby
keeping the distribution channel motivated. A happy distribution channel means better promotion
for the company.

Promotions in the marketing mix of Adidas


Adidas markets through various marketing vehicles but the majority of marketing is concentrated
on television and product placements. The creative team of Adidas is known to pump adrenaline
in their customers through ads which are well made, very creative and filled with energy. These
ads attract the customers towards the brand by sending the right marketing message to the
customer. The tagline of Adidas Impossible is nothing is in itself a very powerful statement for
the brand.
After television, product placement is the second line of promotion for Adidas. The popularity of
the brand is because it ties up with the top players across the world such as Lionel messi,
Ronaldinho, Sachin tendulkar and various others. At the same time, Adidas also sponsors teams
and some of the top teams include Real Madrid, France, Great Britain (in football), England and
South Africa (in cricket) and several others.

Below the line marketing of Adidas includes some very creative outdoor campaigns as well as
events marketing. Sales promotions and trade promotions are also regularly offered by
Adidas to their channel partners to promote the sales of the brand. This concludes the
marketing mix of Adidas.
SEGMENTATION

For adidas the market segments in consideration are based on demographics, psychographics and
behaviour. The demographic segmentation is based on age, gender, income and occupation.

The market is segmented into three main categories based on age. These segments are age groups
1-15 years, 15-35 years and above 35 years.

Based on monthly household income the market is segmented into below Rs.15000 pm,
Rs.15000 to Rs.50000 pm and above Rs.50000 pm. The market is also segmented based on
gender and occupation (which leads to differential disposable incomes).

Psychographic segmentation is of great importance for the sport shoe industry. The higher
income groups are classified based on their tendencies into four major categories; the innovators,
thinkers, achievers and experiencers. As for the groups with lesser resources, they are
categorized into believers, strivers, makers and survivors.

Under behavioral segmentation an important user group is the sports and fitness conscious
population. This segment is further subdivided into gym regulars, professional and amateur
athletes and even drawing-room sports enthusiasts.
TARGET AND POSITIONING

Based on information gathered from retailers and adidas executives, it is evident that the major
demographic segment targeted by adidas is the age group of 15-35 years. Very few footwear
products are aimed at the female market.

adidas targets households with monthly incomes greater than Rs. 15,000. Households with
incomes between 15,000 and 30,000 rupees per month dont buy a new pair as often as higher
income brackets. This is primarily because they use shoes as shoes and not as style/image
products. It is important that when this group enters the market with an intention to buy, they
should buy from adidas. To ensure this, adidas should sell durable, comfortable shoes at a
reasonable price to this group.

A crucial segment adidas has identified is the Call Centre Crowd. This segment is substantial in
the metros and is expected to continue its rapid growth. It consists of image-conscious youth who
are earning but are not yet independents. This means that their entire income is disposable.
adidas seeks the highest share of wallet from these consumers.

Under psychographic segementation, adidas targets

Experiencers: young, enthusiastic, impulsive people who seek variety and excitement.

Strivers: Trendy and fun-loving people who are resource-constrained but favour stylish
products that emulate the purchase of those with greater material wealth.

Image Drivers: The wealthy few who set the trends in their social circle. This is the
segment responsible for the selling out of the Rs.12499 adidas One - adidas most
expensive shoe in India.

The company targets behavioural segments also: The sports and fitness conscious population is
further subdivided into gym regulars, professional and amateur athletes and even drawing-room
sports enthusiasts. adidas has specific products for each of these sub-categories.
Cross-training shoes, running shoes, etc. are aimed at gym regulars and runners. Shoes are
designed specifically for sports like cricket, football, basketball and now even adventure sports
like rock-climbing. We can take a particular segment which we call Hardcore football. It refers
to young footballers, passionate about playing the sport, with the means to pay. A good example
here would be adidas Predator, which sets the standard for football studs.

adidas rightly sees themselves as the world leaders in football shoes. This is the only sport
market in which they lead Nike. The brand has been synonymous with football ever since Adi
Dassler invented the first adjustable rubber screw-on studs. An interesting fact: Every World Cup
winning team before 2006 wore adidas football boots!

Sport-inspired designs are incorporated into adidas lifestyle products for the sports enthusiast.
For example, there is a shoe that is designed like an F1 drivers shoe. The heel is molded to fit
into the floorboard of an F1 car and the sole is made of Goodyear rubber the same rubber that
F1 tyres are made of! Despite the effort put into design and manufacturing of the shoe, it is still
meant to be a lifestyle product.
CHAPTER 3

ANALYSIS AND
INTERPRETATION OF
DATA
DATA ANALYSIS

1) WHATS YOUR AGE ?

AGE GROUP BELOW 15 15 - 20 21 - 25 26 - 30 31 - 40 40 +

PERCENTAGE 20 30 25 12 8 5

35

30

25

20

PERCENTAGE
15

10

0
BELOW 15 15 - 20 21 - 25 26 - 30 31 - 40 40 +

AGE
Which brand's sport shoe to you own right now ?

OTHER
BRAND ADIDAS NIKE REEBOK PUMA S
PERCENT
AGE 35 20 25 15 5

35

30

25

20
PERCENTAGE

15

10

0
ADIDAS NIKE REEBOK PUMA OTHERS

BRAND
What is the price range that you are willing to keep as a budget when
buying sport shoes?

PRICE BELOW 999 1000 - 1999 2000 2999 3000 -3999 4000 +

PERCENTAGE 20 35 20 15 10

35

30

25

20
PERCENTAGE
15

10

0
BELOW 999 1000 - 1999 2000 - 2999 3000 -3999 4000 +

PRICE
Which is the most important factor to you while purchasing
sneakers/sport shoes?

DURABILIT DESIG OTHER


FACTOR PRICE Y COMFORT BRAND IMAGE N S
PERCENTAG
E 12 25 30 15 15 3

OTHERS; 3%

DESIGN; 15% PRICE; 12%

BRAND IMAGE; 15% DURABILITY; 25%

COMFORT; 30%
Which brands advertisements do you like the most?

BRAND ADIDAS REEBOK NIKE PUMA


PERCENTAGE 40 35 20 5

PUMA; 5%
NIKE ; 20%
ADIDAS; 40%

REEBOK; 35%
Which aspect of buying experience do you consider most important?

AMBIENC OTHER
FACTOR LOCATION E SERVICE INTERIORS S
PERCENTAG
E 25 15 30 20 10

OTHERS; 10%

LOCATION; 25%

INTERIORS; 20%

AMBIENCE; 15%

SERVICE; 30%
DO YOU THINK THAT THE COMPANY IS GIVING ITS
CUSTOMER WHAT THEY WANT IN TERM OF QUALITY AND
PRICES OR VALUE FOR MONEY?

YES NO
PERCENTAGE 85 15

No; 15%

Yes; 85%
How do you rate ADIDAS in terms of customer satisfaction ?

RATING EXCELLENT VERY GOOD GOOD AVERAGE POOR


PERCENTAGE 15 30 25 20 10

30

25

20

PERCENTAGE 15

10

0
EXCELLENT VERY GOOD GOOD AVERAGE POOR

RATING
How do you rate their After - Sales service ?

EXCELLEN
RATING T VERY GOOD GOOD AVERAGE POOR

PERCENTAGE 20 25 30 10 15

30

25

20

PERCENTAGE 15

10

0
EXCELLENT VERY GOOD GOOD AVERAGE POOR

RATING
How do you came to khow about the products of this brand ?

NEWSPAPE TELEVISIO MAGAZINE SPORTING


MEDIA R N S EVENTS OTHERS

PERCENTAGE 10 20 25 40 5

OTHERS

SPORTING EVENTS

MAGAZINES
MEDIA

TELEVISION

NEWSPAPER

0 5 10 15 20 25 30 35 40 45

PERCENTAGE
SWOT ANALYSIS

Adidas is one of the strongest sports brand in the world. Known most prominently for its range
of Shoes, the brand is also a manufacturer for clothing and accessories. Here is the SWOT
analysis of Adidas.

Strengths in the SWOT analysis of Adidas

1. Legacy & heritage: With decades of heritage & legacy, Adidas has travelled a long way to
establish itself as a youthful brand. The brand was started in 1949 and has travelled a long
way since then.

2. Diversified portfolio: Company has multiple product portfolios with varied range of
footwear & accessories under brand name Adidas (premium segment) & Reebok (mid
range).

3. Strong financial position: With its 2400 store globally accounting $4.3billions, the
company is in strong financial position.

4. Distribution network: By selling it from online stores to company owned stores to


supermarket stores, Adidas has an effective distribution system for their products available
through different channels.

5. Branding by creating touch points with the community: Celebrity endorsements &
sponsoring major sports organizations such as FIFA, UEFA, NBA & Olympics has
increased the awareness of Adidas in the market & hence it has increased the highly
targeted customer base as well.
6. Collaborations & memberships: Strong relationship within the sustainability area with
organizations such as International Labour organization, International Finance Corporation
has given the company an edge over competitors so that they can have a sustainable
business.
Weakness in the SWOT analysis of Adidas

1. Premium price range: High price range due to innovative technology & Production
methods have made the brand affordable to limited customers only, especially in
developing countries.

2. Outsourced manufacturing: Adidas has 93% of production outsourced to 3 rd party


manufacturers (largely to Asia) to avail of low labour cost & easy availability of resources.
They are running a risk of over dependency on outsourcing especially in Asian markets.
Also, the overall quality of products perceived by the consumers of developed economies
is a major concern as far as brand is concerned.

3. Limited product line: Adidas along with the recently acquired Reebok brands, has got
only 2 brands under their group although they have got deep assortments within these
brands. Thus, there is more scope for product line expansion.

Opportunities in the SWOT analysis of Adidas

1. Changing Lifestyle: With the saturation of developed economies, changing taste &
preferences, education & changing lifestyle of developing economies, there is a steep rise
in the demand of premium goods & services.

2. Market development: Entering into new markets will be the only way to succeed in the
future because developed economies are already having high competition.
3. Expansion in product line: Expanding its product line will open a new set of opportunities
while at the same time it can differentiate itself from the competitors by following this
strategy.

4. Increasing demand of premium products: If we only consider the Indian market then
there is a growth rate of 33% in demand of premium products. This tells us the future
business opportunity & expanding market size of developing economies.
5. Backward integration: This will be smart strategy if followed by Adidas as it will help
Adidas to secure their patent rights & also integrate their R&D with the operational team
in order to work in open system.

Threats in the SWOT analysis of Adidas

1. Competition: Although Adidas is a global brand but it is facing fierce competition from
other brands like Nike which is No.1 brand and Adidas being in 2 nd Position in this
premium segment. Besides this, there is regular competition from local players, substitutes
and market penetrators.

2. Supplier Dominancy: Due to majority of its production being outsourced; Suppliers have
more bargaining power then the company.

3. Government Regulations: With its 35% products manufactured in China & 93% of
production happening in Asia, Import regulations, duty& tariffs plays a critical role in the
pricing and success of the company.
CHAPTER-4

CONCLUSIONS
CONCLUSIONS

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 per the questionnaire most of the people like the company ADIDAS because of its
unbeatable quality.

Out of all the products of the ADIDAS most of the people like footwear.

Nearly 80% of the people think that ADIDAS products are durable in nature.

Most of the people(70%) have rated the company ADIDAS from 6-10 on the scale from 1
to10.

Around 80% of the people are satisfied with the advertising strategy of the company
ADIDAS.

Most of the people while purchasing shoes give more importance to quality than price or
any other factor.

More than 80% of the people think ADIDAS gives this customer value of money.

The products were very warmly welcomed in the market due to the superior quality and
styling.
Adidas products are superior to their competitor product due to the quality factor.
Due to good quality packaging and after sales services the product proved to be a boon
Adidas had a wide range of features which made it the best possible buy for the market
the pricing made it repulsive for every type of consumer
CHAPTER-5

SUGGESTIONS
SUGGESTIONS

1. Nike and Reebok are the major competitors of ADIDAS so it needs to keep
track on its competitors to ensure people buy their product ahead of its
competitors.

2. The company should try to improve its quality regularly so that quality
products are attracted to them.

3. The footwear sector of the industry is going very good. They need to find
why other products have lesser demand.

4. The prices of branded shoes must be reduced to increase sales.


BIBLIOGRAPHY

BOOKS:

Kotler, P. (2000), Marketing Management, Millennium Edition, Prentice Hall Of India Pvt.
Ltd., New Delhi.

V S Ramaswamy & S Namakumari (2007), Marketing Management, Planning,


Implementation and Control, Global Perspective Indian Context, 3rd Edition, Macmillan
India Limited, New Delhi.

Berry L.L (1995), Relationship Marketing Of Services-Growing Interest, Emerging


Perspectives, Journal Of The Academy Of Marketing Science.

Rajan Saxena (2006), Marketing Management, 3rd Edition, Tata McGraw Hill Publishing
Company Limited, New Delhi.

WEB SITES:
http://www.adidas.com/
http://www.indiainfoline.com/
http://www.adidasindia.com/
ANNEXURE

Personal Details:
Name :

Address :

Age :

Contact No. :

WHATS YOUR AGE ?

Below 15 year 16 20 years 21 25 years

26 30 years 31 40 years 40 +

Which brand's sport shoe to you own right now ?


Below 15 year Below 15 year Below 15 year Below 15 year

What is the price range that you are willing to keep as a budget when
buying sport shoes?
below 999 1000 1999 2000 2999

3000 4000 4000 +


Which is the most important factor to you while purchasing
sneakers/sport shoes?
Price Durability Comfort Brand Image design others

Which brands advertisements do you like the most?


Adidas Nike Reebok Puma

Which aspect of buying experience do you consider most important?


Location Ambience Service Interiors Others

DO YOU THINK THAT THE COMPANY IS GIVING ITS


CUSTOMER WHAT THEY WANT IN TERM OF QUALITY AND
PRICES OR VALUE FOR MONEY?
Yes No

How do you rate ADIDAS in terms of customer satisfaction ?


Excellent Very Good Good Average Poor

How do you rate their After - Sales service ?


Excellent Very Good Good Average Poor

How do you came to khow about the products of this brand ?


Newspaper Television Magazines Sporting Events
Others