Professional Documents
Culture Documents
BACKGROUND
INTRODUCTION OF ADIDAS :
HISTORY:
1924, his brother Rudolf returned to Herzogenaurach to join his younger brother's
business, which became Gebrder Dassler Schuhfabrik (Dassler Brothers Shoe
Factory) and prospered. The pair started the venture in their mother's laundry, but,
at the time, electricity supplies in the town were unreliable, and the brothers
sometimes had to use pedal power from a stationary bicycle to run their
equipment.
By the 1936 Summer Olympics, Adi Dassler drove from Bavaria on one of the
world's first motorways to the Olympic village with a suitcase full of spikes and
persuaded U.S. sprinter Jesse Owens to use them, the first sponsorship for an
African American. Following Owens's haul of four gold medals, his success
cemented the good reputation of Dassler shoes among the world's most famous
sportsmen. Letters from around the world landed on the brothers' desks, and the
trainers of other national teams were all interested in their shoes. Business
boomed and the Dasslers were selling 200,000 pairs of shoes each year before
World War II.
Both brothers joined the Nazi Party, but Rudolf was slightly closer to the party
than Adolf. During the war, a growing rift between the pair reached a breaking
point after an Allied bomb attack in 1943, when Adi and his wife climbed into a
bomb shelter that Rudolf and his family were already in: "The dirty bastards are
back again", Adi said, referring to the Allied war planes, but Rudolf was
convinced his brother meant him and his family. After Rudolf was later picked up
by American soldiers and accused of being a member of the Waffen SS, he was
convinced that his brother had turned him in. The Dassler factory, used for
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After a period of trouble following the death of Adolf Dasslers son Horst
Dassler in 1987, the company was bought in 1989 by French industrialist Bernard
Tapie, for 1.6 billion (now 243.9 million), which Tapie borrowed. Tapie was at
the time a famous specialist of rescuing bankrupt companies, an expertise on
which he built his fortune. Tapie decided to move production offshore to Asia. He
also hired Madonna for promotion. He sent, from Christchurch, New Zealand, a
shoe sales representative to Germany and met Adolf Dasslers descendants
(Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few
items to promote the company there. In 1992, unable to pay the loan interest,
Tapie mandated the Credit Lyonnais bank to sell Adidas, and the bank
subsequently converted the outstanding debt owed into equity of the enterprise,
which was unusual as per the prevalent French banking practice. The stateowned bank had tried to get Tapie out of dire financial straits as a personal favor
to Tapie, it is reported, because Tapie was Minister of Urban Affairs (ministre de
la Ville) in the French government at the time. In February 1993, Credit Lyonnais
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sold Adidas to Robert Louis-Dreyfus, a friend of Bernard Tapie for a much higher
amount of money than what Tapie owed, 4.485 billion (683.514 million) francs
rather than 2.85 billion (434.479 million). They also purposely bankrupted
Tapie's company that owned Adidas, because only the company had the right to
sue them. Robert Louis-Dreyfus became the new CEO of the company. He was
also the president of Olympique de Marseille, a team Tapie had owned until
1993.Tapie filed for personal bankruptcy in 1994. He was the object of several
lawsuits, notably related to match fixing at the football club. During 1997, he
served 6 months of an 18-month prison sentence in La Sant prison in Paris
Post-Tapie era:
In 1994, combined with FIFA Youth Group, SOS Children's Villages became the
main beneficiary. In 1997, Adidas AG acquired the Salomon Group who
specialized in ski wear, and its official corporate name was changed to AdidasSalomon AG because with this acquisition Adidas also acquired the Taylor made
Golf Company and Maxfli, which allowed them to compete with Nike Golf. In
1998, Adidas sued the NCAA over their rules limiting the size and number of
commercial logos on team uniforms and clothing. Adidas withdrew the suit, and
the two groups established guidelines as to what three-stripe designs would be
considered uses of the Adidas trademark. In 2003, Adidas filed a lawsuit in a
British court challenging Fitness World Trading's use of a two-stripe motif similar
to Adidas's three stripes. The court ruled that despite the simplicity of the
mark, Fitness Worlds use was infringing because the public could establish a link
between that use and Adidas's mark. In September 2004, top English fashion
designer Stella McCartney launched a joint-venture line with Adidas, establishing
a long-term partnership with the corporation. This line is a sports performance
collection for women called "Adidas by Stella McCartney", and it has been
critically acclaimed. Also in 2005, on 3 May, Adidas told the public that they sold
their partner company Salomon Group for 485m to Amer Sports of Finland. In
August 2005, Adidas declared its intention to buy British rival Reebok for
$3.8 billion (US$). This takeover was completed with partnership in January
2006. and meant that the company would have business sales closer to those of
Nike in North America. The acquisition of Reebok would also allow Adidas to
compete with Nike worldwide as the number two athletic shoemaker in the world.
Adidas has global corporate headquarters in Germany, and many other business
locations around the world such as Portland OR, Hong Kong, Toronto, Taiwan,
England, Japan, Australia, and Spain. Mainly sold in the U.S., Adidas makes lots
of assets from these countries and is expanding to more oversea countries. In
2005, Adidas introduced the Adidas 1, the first ever production shoe to use
a microprocessor. Dubbed by the company "The World's First Intelligent Shoe", it
features a microprocessor capable of performing 5 million calculations per second
that automatically adjusts the shoe's level of cushioning to suit its environment.
The shoe requires a small, user-replaceable battery that lasts for approximately
100 hours of running. On 25 November 2005, Adidas released a new version of
the Adidas 1 with an increased range of cushioning, allowing the shoe to become
softer or firmer, and a new motor with 153 percent more torque. On 11 April
2006; Adidas announced an 11-year deal to become the official NBA clothing
provider. They will make NBA, NBDL, and WNBA jerseys and products as well
as team-colored versions of the "Superstar" basketball shoe. This deal (worth over
$400 million) takes the place of the previous 10-year Reebok deal that was put in
place in 2001. By the end of 2012, Adidas is reporting the highest revenues ever
and Chief Executive Herbert Hainer expresses optimism for the year ahead.
PRODUCTS:
Running:
Football:
One of the main focuses of Adidas is football kit and associated equipment.
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. The company has
been an innovator in the area of footwear for the sport, with notable examples
including the 1979 release of the Copa Mundial moulded boot used for matches
on firm dry pitches. It holds the accolade of the best selling boot of all time. The
soft-ground equivalent was named World Cup and it too remains on the market,
timeless and iconic. Some of the most famous football teams are currently
sponsored by Adidas. Adidas became renowned for advancing the Predator boot
design developed by ex-Liverpool and Australian international player Craig
Johnston. This design featured a ribbed rubber structure for the upper leather of
the shoe, used to accent the movement of the ball when struck; highly skilled
players claimed they were able to curve the flight of the ball more easily when
wearing this new contoured design. The Predator also features the Craig Johnstoninvented Traxion sole. FIFA, the world governing body of football, commissioned
specially designed footballs for use in its own World Cup tournaments to favor
more attacking play. The balls supplied for the 2006 World Cup, the Teamgeist,
were particular noteworthy for their ability to travel further than previous types
when struck, leading to longer range goal strikes that were intended to increase
the number of goals scored. Goalkeepers were believed to be less comfortable
with the design, claiming it would move significantly and unpredictably in
flight. Adidas also introduced another new ball for the 2010 World Cup.
The Jabulani ball was designed and developed by Loughborough University in
conjunction with Chelsea FC. It received much criticism from players, managers
and pundits for being too hard to control. The lighter and more aerodynamic ball
led to many shots and passes being over hit. The Jabulani was widely blamed for
the low numbers of long range goals or even remotely accurate attempts in the
opening stage of the tournament.Adidas sponsors Bundesliga club Bayern Munich
In Germany, Adidas sponsors the German national
team and Bundesliga clubs Bayern Munich, Schalke, Hamburg, Bayer
Leverkusen, Nuremberg, and Wolfsburg. In Addition, Adidas has numerous major
kit deals with clubs worldwide. Amongst the most high profile are Real
Madrid, Olympique Lyonnais, AC Milan, Ajax, SL Benfica, and Olympique de
Marseille. Current footballers that Adidas officially endorses includes (but is not
limited to): Mats Hummels, Lionel Messi, Nani, Shinji Kagawa, Daniele De
Rossi, Frank Lampard, Arjen Robben, Thomas Muller, Kaka, Xabi Alonso, David
Villa, Andr Schrrle, Steven Gerrard, Michael Ballack, Bastian
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Schweinsteiger, Philipp Lahm, Toni Kroos, Alessandro Del Piero, Xavi, Atsuto
Uchida, Hiroshi Kiyotake, and Karim Benzema. As well as the
aforementioned Predator boot, Adidas also manufacture
the F50 and adiPure range of football boots. Adidas also provides clothing and
equipment for all teams in Major League Soccer. They are also set to produce kits
for Premier League team Arsenal from 2014.
Tennis:
Adidas has sponsored tennis players and recently introduced a new line of
tennis racquets. While the Feather is made for the "regular player and the
Response for the "club player", Adidas targets the "tournament player" with the
12.2 oz Barricade tour model. Adidas sponsors the following professional players
with mainly clothing and footwear: Ana Ivanovi, Andy Murray, Maria, Caroline
Wozniacki, Justine Henin, Jo-Wilfried Tsonga, Daniela Hantuchov, Alicia
Molik, Fernando Verdasco, Marcos Baghdatis, Gilles Simon, Fernando
Gonzlez, Flavia Pennetta, Laura Robson, Melanie Oudin, and Sorana Crstea.
Adidas tennis clothing contains the ClimaCool technology found in other athletic
jerseys and shoes. In November 2009 World Number 4 Andy Murray was
confirmed as Adidas's highest paid star with a 5-year contract reported to be worth
$24.5m.Players sponsored by Adidas can take advantage of the Adidas Player
Improvement Program, where the company provides coaches, fitness trainers and
sports psychologists to players in order to further their careers. The program
includes legendary coaches such as Darren Cahill and Sven Groeneveld.
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In Cincinnati, at the ATP Tennis Tournament in Mason, they have also sponsored
the ball-boy and ball-girl uniforms.
ANDY MURRAY
Cricket:
In the 1990s, Adidas signed world's iconic batsman Sachin Tendulkar of India and made
shoes for him. Tendulkar still wears Adidas shoes while playing matches. Since 2008,
Adidas has sponsored the cricket bat used by Sachin Tendulkar. It created a new bat,
'Adidas Master Blaster Elite', 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 Ravindra Jadeja. Having made cricket footwear
for many years, the company finally entered the field of bat manufacture in 2008. Now the
range includes Pellara, Incurza, Libro and M-Blaster. Currently the sponsored cricketers
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include Sachin Tendulkar, Suresh Raina, Lasith Malinga, Kieron Pollard and Dwayne
Bravo. Adidas manufactures uniforms for the England cricket team. Adidas signed
with Cricket South Africa in 2011 and the uniforms worn by South African Cricket
Team during and after the Cricket World Cup 2011 will be manufactured by the German
giant. The Australia cricket teams were previously sponsored by Adidas till late 2011. Now
they also sponsor 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 India
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MARKETING:
Adidas, like other sports brands, is believed to engender high consumer brand loyalty.
Brand loyalty towards Adidas, Nike, Inc., Puma AG and several other sportswear brands was
examined in a recent study. The study found consumers did not exhibit unduly high loyalty
towards such brands. During the mid to late 1990s, Adidas divided the brand into three main
groups with each a separate focus: Adidas Performance was designed to maintain their devotion
to the athlete; Adidas Originals was designed to focus on fashion and life-style; and Style
Essentials, with the main group within this one being Y-3. "Adidas is all in" is the current global
marketing strategy for Adidas. The slogan aims to tie all brands and labels together, presenting a
unified image to consumers interested in sports, fashion, street, music and pop culture.
"Impossible is Nothing" was the previous mainstream marketing slogan for Adidas.
This campaign was developed by 180/TBWA based in Amsterdam but also with significant work
being done by TBWA/Chiat/Day in San Francisco particularly for its basketball campaign
"Believe in Five".TBWA\Chiat\Day commissioned Zane Peach to produce images for 2007
international ad campaign.
MARKETING MIX:
Product:
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The group has maintained a culture of providing high quality products aimed at providing
the best value to the costumer. The products portfolio is continuously enhanced through
creations and innovations throughout the companies various categories. This is pursued in
order to cater to the various needs and wants of consumers worldwide. Well-known
brands for sports apparels, equipment and accessories, the Adidas group has a diverse
brand portfolio consists of: Adidas: footwear, apparel and accessories; Reebok: footwear,
apparel and accessories; Taylor Made Adidas Golf: Golf Equipment, footwear, apparel
and accessories; Rockport: Dress, casual and outdoor footwear, apparel and accessories;
CCMHockey: Hockey equipment and apparel.
Price:
The group is using adapted pricing strategies, depending on which market they are
operating in, so as to achieve its goals. Penetrating attack markets with lower prices or
using market skimming tactics, for instance. In recognition of the intense competition in
the global market, the company is involved in regular evaluation of its price to ensure that
the products stay competitive at the point of sale.
Place
The company has adopted an ambitious global plan to distribute its products to the
consumer with a strong focus on controlled space, including: Own-retail business, ecommerce, Shop-in-Shop, Joint ventures with retail partners, mono-branded franchise
stores, co-branded stores with sports organizations and other brands. Hence, a high level
of brand control is provided. In addition, an integrated distribution roadmap has been
set up to ensure further growth and to increase brand presence in under-penetrated,
affluent cities, without cannibalizing their own brands and distribution mix.
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Promotion
The Adidas group sells products in virtually every country of the world. Thus, different
promotional tools are used in order to reduce the number of lost customers and to
increase sales. The group has set up an unparalleled portfolio of promotion partnerships
with international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and
NHL). Henceforth, commercials, ads, apps for smart phones, product placement,
sponsorships for athletes and sport events (e.g. Berlin Marathon 2011) are implemented.
Weaknesses
High dependency on raw material prices (cotton price almost doubled in 2010). Lower
margins in traditional wholesale business in comparison with own shops. Fierce
competition with strong rivals (Nike). Poor share in the U.S.-market.
Opportunities:
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Investments focused on highest potential markets and channels e.g. 500 new sales
points in China. Route 2015 and U.S. Generation 2015; this increased geographic
growth to tap developing markets. Improved presence in the global market implies a
significant potential for more business opportunities. Technological innovations e.g.
Micoach and Techfit compression jerseys.
Threats:
Increase in raw material costs Over pricing. New rising competition in developing
countries (China: Li Ning grew in five years from almost nothing to USD$882m has
pulled neck and neck with Adidas). Also a significant threat is the inherent unpredictable
environmental patterns in foreign markets. In todays business, international marketing
for companies is crucial in order to succeed in the long term. The world has become a
global village as the growth of technology has established. This provides businesses with
a perfect opportunity to reach previously unreachable markets. Adidas disposes a wellestablished capital base ensuring that diverse marketing tools and techniques can be
applied to penetrate untouched market segments. This contributes to their ability to cope
with occurring inherent complexities and to evolve costly marketing concepts to gain
additional market shares in order to prevail against strong multinational rivals. Mostly
notably, in the development of BEM is a favorable opportunity to achieve significant
growth and maximize the companys profitability. The groups performance is
remarkable, taking into account that Adidas is coping well with the complexities of the
developed and the developing world.
FUTURE OBJECTIVES:
To study the marketing of Adidas and also about the current position of
Adidas in market
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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 area seen
which adidas can improve.
FIRST IMPRESSION
CUSTOMER INTERACTION
CUSTOMER UNDERSTANDING
CONVINCING THE CUSTOMER
FITTING EXPERIENCE
MAXIMIZING OPPORTUNITIES
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CLOSING OF SALE
FINAL IMPERSSION
BRAND VALUES:
INNOVATIVE
INSPIRATIONAL
PASSIONATE
AUTHENTIC
COMMITTED
HONEST
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AWARNESS
YES
NO
18
15
10
5
0
INTERPRETATION:
19
INTERPRETATION:
20
AVAILABILITY
YES
NO
INTERPRETATION:Everyone i.e. 100% agreed that the products of the brand ADIDAS are
easily available.
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Preference
Price
Quality
Durability
Variety
INTERPRETATION:
22
Customer Service
Excellent
Good
Customer Service
Average
Poor
0
10
20
30
40
50
60
70
80
INTERPRETATION: 12.5% said that the ADIDAS provides excellent customer service.
70% said that the ADIDAS provides good customer service.
17.5% said that the ADIDAS provides average customer service.
0% i.e. no one said about the customer service provided by ADIDAS is Poor.
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30
20
10
0
3000-5000
5000-6000
6000-7000
Above 7000
INTERPRETATION:
24
30
20
10
0
INTERPRETATION:
25
Poor
Average
Good
Excellent
INTERPRETATION: 0% people voted for the poor variety provided with respect to shoes &
apparels.
27.5% people voted for the average variety provided with respect to shoes &
apparels.
60% people voted for the good variety provided with respect to shoes &
apparels.
12.5% people voted for the excellent variety provided with respect to shoes
& apparels.
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Product Appeal
40
35
30
25
Product Appeal
20
15
10
5
0
Design
Attractive
Colour
Range
INTERPRETATION: 35.5% people find the products of ADIDAS appealing on the basis of
Design.
35.5% people find the products of ADIDAS appealing on the basis of
Attractive.
12% people find the products of ADIDAS appealing on the basis of
Color.
17% people find the products of ADIDAS appealing on the basis of
Range.
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Yes
No
INTERPRETATION:92.5% agreed that ADIDAS brand provides variety & upgraded features in
their new product while7.5% denied that saying they do not provide variety
& upgraded features in their new products.
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Yes
No
INTERPRETATION:72.2% agreed saying that the promotions & marketing strategies used by
ADIDAS brand are effective using broadcasting and press media while
27.5% denied this point.
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Brand Loyalty
Adidas only
Puma
Brand Loyalty
Reebok
Nike
0
10
15
20
25
30
35
40
INT
ERPRETATION: 29.5% people said that they will shift to Nike if a particular product is not
available in ADIDAS.
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25.5% people said that they will shift to Reebok if a particular product is not
available in ADIDAS.
36.4% people said that they will shift to Puma if a particular product is not
available in ADIDAS.
Only 4.6% people said that they will stick to ADIDAS only even if a
particular product is not available in ADIDAS.
1) The main objective of this report is to implement theory of data collection into practical
manner.
2) How questionnaire method is used to collect data.
3) What are the difficulties faced by the people while data collecting.
4) Collection of information about Adidas through small sample size.
5) Knowing the peoples perception towards the brand.
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PROJECT DESIGN
I have used a sample size of 40 people to complete this project in the area of MITSOM COLLEGE. The research is on product mix of the brand Adidas.
Primary and Secondary method is used to collect the data for Adidas.
Questionnaire method is the primary source whereas internet, books and websites are the
secondary sources used to collect the data.
Some of the limitations faced to collect this data are as follow:LIMITATIONS
1) There was no response by few people.
2) Incomplete information was known about the products to few people.
3) Time delay due to late response.
4) Analysis and interpretation of data was bit difficult.
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62.5% people preferred the price of apparels between 1000-2000. 17.5% preferred the
price of apparels between 2000-3000.2.5% people preferred the price of apparels
above 3000.
In the survey of 40 people, 0% people voted for the poor variety provided with
respect to shoes & apparels.27.5% people voted for the average variety provided with
respect to shoes & apparels.60% people voted for the good variety provided with
respect to shoes & apparels.12.5% people voted for the excellent variety provided
with respect to shoes & apparels.
In the survey of 40 people, 35.5% people find the products of ADIDAS appealing on
the basis of Design.35.5% people find the products of ADIDAS appealing on the
basis of Attractive.12% people find the products of ADIDAS appealing on the basis
of Color.17% people find the products of ADIDAS appealing on the basis of Range.
In the survey of 40 people, 92.5% agreed that ADIDAS brand provides variety &
upgraded features in their new product while7.5% denied that saying they do not provide
variety & upgraded features in their new products.
In the survey of 40 people, 72.2% agreed saying that the promotions & marketing
strategies used by ADIDAS brand are effective using broadcasting and press media while
27.5% denied this point.
In the survey of 40 people, 29.5% people said that they will shift to Nike if a particular
product is not available in ADIDAS.25.5% people said that they will shift to Reebok if a
particular product is not available in ADIDAS.36.4% people said that they will shift to
Puma if a particular product is not available in ADIDAS. Only 4.6% people said that they
will stick to ADIDAS only even if a particular product is not available in ADIDAS.
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RECOMMENDATIONS/ SUGGESTIONS
It is very clear from the survey conducted that most of the people are aware of the
brand as it is seen that almost all the people use this brand nowadays.
From the survey it came to know that Adidas is a very well known brand and they should focus
on the middle class people also to sell their products, bring in some more varieties in their
products, improve their marketing strategies via broadcasting and press media, lower down the
prices in the footwear section when all the elements were considered during the survey. Hence
the study shows that Adidas is an excellent brand when it comes to quality, availability and brand
awareness.
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BIBLIOGRAPHY:
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