Professional Documents
Culture Documents
Project report
On
Brand Audit
For
Adidas
Submitted to
Prof. Garima Sharma
Submitted by
Asad Siddique
Hafiz Patel - 28
Mohammed Yamin Shaikh - 61
Raees Basri -
Sohail vasaiwala - 100
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Table of contents
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The Adidas group at a glance
Adidas – a name that stands for competence in all sectors of sport around the globe. The vision
of company founder Adolf (“Adi”) Dassler has long become reality and his corporate philosophy
the guiding principle for successor generations.
The idea was as simple as it was brilliant. Adi Dassler’s aim was to provide every athlete with
the best possible equipment. It all began in 1920, when Adi Dassler made his first shoes using
the few materials available after the First World War. Today, the Adidas product range extends
from footwear and apparel to accessories for all kinds of different sports. The key priorities are:
running, football, basketball and training.
In 1949 Adi Dassler first registered Adidas in the commercial register (Handels register) in Furth
(near Herzogenaurach). The official name of the company back then was “Adolf Dassler Adidas
Sportschuhfabrik”. After a period spanning almost 70 years, the Dassler Family withdrew from
the company in 1989, and the enterprise was transformed into a corporation.
French-born Robert Louis-Dreyfus was Chairman of the Executive Board from April 1993 to
March 2001. It was he who initiated Adidas’ flotation on the stock market in November 1995.
Since 2001, Herbert Hainer has been leading the Group.
In 1997, Adidas acquired the Salomon group, and the company’s name changed to Adidas-
Salomon AG. The Salomon group also included the Taylor Made golf brand.
In October 2005, the Salomon business segment, including the related subsidiaries and brands
Salomon, Mavic, Bonfire, Arc’Teryx and Cliché, was sold to the Finnish Amer Sports
Corporation. The company changed its legal name to “Adidas AG” following shareholder
approval at the Annual General Meeting in May 2006.
On January 31, 2006, Adidas-Salomon AG acquired Reebok International Ltd. The closing of the
Reebok transaction marked a new chapter in the history of the Adidas Group. By combining two
of the most respected and well-known brands in the worldwide sporting goods industry, the new
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Group benefits from a more competitive worldwide platform, well-defined and complementary
brand identities, a wider range of products, and a stronger presence across teams, athletes, events
and leagues. And in June 2006, the company’s name is changed to Adidas AG.
The Adidas Group has well over 38,000 employees worldwide, with more than 2,600 Working at
the company’s headquarters in Herzogenaurach. A team of designers, product developers and
experts for biomechanics and material technology carries out research in Portland and at Adidas’
second technology centre in Scheinfeld near
Nuremberg. In Scheinfeld models, prototypes and made-to-measure performance products are
also manufactured and tested. It is here that Adidas maintains the only sports shoe production
facility still in existence in Germany.
More than 170 subsidiaries guarantee marketplace presence for products of the Adidas Group
around the world. Sales and distribution of Adidas products is grouped in four regions
worldwide: Europe/Emerging Markets, North America, Asia/Pacific and Latin America. Today,
the Adidas Group is Europe’s biggest supplier of athletic footwear and sports apparel.
His first shoe, made from the few materials available in the difficult post-war period, was
produced from canvas. A passionate athlete himself, from the very beginning Adi Dassler was in
close contact with sports participants and was always present in person at important sports
events.
Adi Dassler focused his work on the classic disciplines of track and field. In the mid 1920s he
was already experimenting with spikes. Athletes wore special shoes from his workshop for the
first time at the 1928 Olympic Games in Amsterdam.
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In the mid 1930s Adi Dassler was already making 30 different shoes for eleven sports, and he
had a workforce of almost 100 employees. In less than two decades Adidas advanced to become
the world’s leading sports shoe manufacturer.
After the turmoil of the Second World War, Adi Dassler made a fresh start. In 1947, with 47
workers, he began putting into practice the knowledge gained from the prewar period and also
new ideas. Adi Dassler made the first post-war sports shoes using canvas and rubber from
American fuel tanks. In 1949 he registered the company named “Adolf Dassler Adidas
Sportschuhfabrik” in the commercial register in Furth.
The breakthrough came for Adi Dassler when Germany won the Soccer World Cup in 1954. In
the legendary Final against Hungary, the German team wore boots with screw-in studs – by
Adidas. Parallel to the rapid developments in sport, Adi Dassler strove to specialize and optimize
his products. Adi Dassler was the first entrepreneur to use sports promotion in order to make the
public aware of his innovations. He started using well-known athletes as advertising for his
products. Many famous athletes such as Jesse Owens, Muhammad Ali, Max Schmeling, Sepp
Herberger and Franz Beckenbauer counted themselves among the friends of the Dassler Family.
Aggressive publicity became one of the cornerstones of his corporate policy. From now on, Adi
Dassler came up with a product innovation for every major event, documenting the superiority of
Adidas footwear. In constant contact with active athletes in a wide variety of disciplines, he
developed the optimal shoe for almost every sport. Together with his son Horst, Adi Dassler
created an international company that was, and still is, present at all the world’s major sporting
events.
From the mid 1960s, Adidas also started producing apparel for competition and training. Ball
production began in 1963 and ever since 1970 the Official Match ball at all major soccer events
has been an Adidas product.
Adi Dassler died in 1978, at the age of 78. Carrying on his heritage and his ideas, his name and
his developments will continue to help athletes in their efforts to push the limits of performance,
on into the new millennium.
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Following the death of the company founder, Adi Dassler’s widow Kathe and his son Horst took
charge of running the company. Horst Dassler perfected the opportunities offered by sports
promotion. Under his guidance, Adidas became a global leader in the sector of innovation in
sports marketing. He was also responsible for establishing the brand in France. Horst Dassler
died unexpectedly in 1987, at the early age of 51.
With street ball in 1992, Adidas started specifically addressing a younger target group. In 1993,
Robert Louis-Dreyfus took over management of the company. The Frenchman initiated the
comeback of the Three Stripes. In 1995, the Adidas share was one of the most interesting new
introductions on the stock market. In 1997, Adidas AG and the Salomon group combined to form
Adidas-Salomon AG. In 1998 TaylorMade was separated from the Salomon Group and
combined with Adidas Golf. Since 2001, Herbert Hainer has been leading the Group. In October
2005, the Salomon business segment, including the related subsidiaries and brands Salomon,
Mavic, Bonfire, Arc’Teryx and Cliché, was sold to the Finnish Amer Sports Corporation.
On January 31, 2006, Reebok International Ltd. was acquired providing the new adidas Group
with a footprint of around € 9.5 billion ($11.8 billion) in the global athletic footwear, apparel and
hardware markets.
Summary (Adidas)
Type Public
Founded 1924
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Founder(s) Adolf Dassler
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Industry
The sporting goods industry consists of three segments: Athletic footwear, Apparel and
Equipment. Athletic footwear makes up 33% of the sporting goods industry, Apparel 50% and
Equipment makes up the remaining market share. The three largest markets for athletic
equipment are the US at 50% of the market share, Western Europe at 25% of the market share
and Japan at 10% market share.
An industry that had one primary market segment consisting of the serious male soccer and track
athlete has now separated into several market segments containing the professional athlete, the
amateur athlete, the fitness group (aerobics and cross-training) and the mass consumer who is not
interested in athletics but enjoys the comfort of wearing athletic apparel.
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external environment facing the company. The exchange rates of Adidas were favorable. US
goods were expensive to German consumers, which probably encouraged many German citizens
to seek Adidas products versus US products that were more expensive. Likewise German goods
were cheaper for US customers, which should have stimulated the export market in favor of
Germany and Adidas.
MARKETING MIX
PRODUCTS
Men Accessories: Bags Eye Wear, watches Hardware Waterbottles, Yoga, Mats, Fitness
(Gripper) Spiking Football Pump, Wrist Band, Padding, Football, Basketball
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Woman Product: Footwear, Clothing, Accessories, Football, Running, Training, Tennis,
Indoor, Outdoor, Swimming.
Clothing: Jackets, Jerseys, Scarves, Pants & Tights, Shirts, Shorts, Sweatshirts, Tracksuits,
Tops, Pants, Swimwear, Underwear, Skirts, Dresses.
PRICING (GLOBAL):
Price Range: Men Shoes: $55 to $350.
Sandals: $15 to $40.
Woman Shoes: $45 to $240.
Sandals: $20 to $ 35.
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They don’t follow any type of pricing strategy. It depends on the version of the products.
For Ex: one version of a shoe is launched at Rs 5000.00 and after two months a new version of
technology is launched with some added features then the price will go up. Suppose the raw
materials of the product used decreases then automatically the prices will also decrease.
Discounts are given two times in a year during January and July.
PLACE:
Major retail outlets in India:
BHUBANESHWAR:
The ADIDAS outlets are mainly located in the posh area. In Bhubaneshwar ADIDAS is located
in two major locations namely Janpath & Pal Heights. The outlet here in Janpath is opened after
3 years of research. The outlet is well connected with the railway station and airport. The outlet
in Pal Heights is there because it is a posh area and surrounded by IT Park, XIMB, Ginger, and
Fortune Tower. The location in Janpath also attracts the foreigner as this is the way to Puri.
PROMOTION:
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ADIDAS promotes its products through Television advertisement, mobile marketing, through
various sponsorship in sports events, websites, tie up with various football clubs and
international teams. Brand ambassador of ADIDAS India is Sachin Tendulkar and Sania Mirza.
Promotion partnership:
1. IHF Men’s World Championship, Croatia January 16 – February 1, 2009
2. Adidas Official Partner of International Handball Federation NHL All- Star Game, Montreal/
Quebec, Canada January 25, 2009
3. Reebok- CCM Hockey Exclusive Licensee of National Hockey League NFL Super Bowl,
Tampa/ Florida, USA February 1, 2009
4. Reebok Official Outfitter of National Football League NBA All Star Game, Phonix/ Arizona,
USA February 15, 2009
5. Adidas Official Outfitter of National Basketball Association Boston Marathon, Boston /
Massachusetts, USA April 20, 2009
6. Adidas Official Apparel and Footwear Outfitter Flora London Marathon, London, UK April 26,
2009
7. Adidas Official Sponsor French Open, Paris, France May 24 – June 7, 2009
8. Adidas Official Partner of Roland Garros UEFA Champions League Final, Rome, Italy May 27,
2009
9. Adidas Official Ball Supplier of Australia and England cricket teams FIFA Confederations Cup,
South Africa June 14 – 28, 2009
10. Adidas Official Partner of Federation International de Football Association MLB All Star Game,
St.Louis/Missouri, USA July 14, 2009
11. Adidas Official Sponsor of International Association of Athletics Federations real, Berlin
Marathon, Berlin Germany September 20. 2009 Adidas Official Partner.
ADVERTISEMENT ANALYSIS:
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The ADIDAS India advertisement is featuring Sachin Tendulkar. Sachin Tendulkar is a
sports icon famous all around the world. There is an emotional attachment of Indians
towards Sachin Tendulkar and Cricket.
Barriers to Entry:
The footwear-manufacturing segment has the highest barriers to entry out of the three sporting
goods industry segments. in the U.S. 53%of the footwear market share is controlled by two
companies- Nike and Reebok. Adidas came in at 7th place with only 4 % of U.S. market share.
The competition in the industry is fierce, requiring a substantial investment in marketing to
establish a successful brand. Research and development expenses are high requiring a substantial
investment to develop a shoe that could provide the necessary level of comfort to complete with
companies like Nike and Reebok.
Threat of Substitute:
For athletic and fitness activities, few substitute exists for athletic footwear. Substitutes do exist
for athletic footwear and apparel in a leisure markets. For example, an individual could choose to
wear hiking boots instead of tennis shoes to the mall or to the park. The substitute trend at the
time of the case writing favoured the sporting goods industry. Many younger consumers were
turning to sporting goods textiles and footwear as substitutes for other type of casual dress. The
challenge for the sporting goods industry will be to determine and maintain the proper comfort to
cost ratio to continue the positive trend.
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have high levels of skills and education. Most sporting goods companies do very little in house
manufacturing. Since the skill set for manufacturing sporting goods is low and the capital
requirements for the equipment is low, manufacturing can be outsourced to regions of the world
with low labour wages. The raw materials used in the production of athletic apparel do not
appear to be rare commodities. No one supplier would seem to have dominance in this market.
No specific raw material supplier information was given in the case writing.
SWOT Analysis:
Adidas Strength
Adidas biggest are its long history in the sporting goods business, presences in Europe, lead in
the sales of Soccer and Track and Field Sports Equipment, and German heritage. Adidas should
use its legacy created in the sporting goods industry in advertising campaigns as well as its
German heritage. Adidas greater understanding of European culture should give it an advantage
in terms of marketing in Europe. Women in Soccer and the growth of popularity of soccer , track
and field, and the fact that Germans are renowned for their engineering capabilities as an entry
point to gaining market share in the U.S.
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Adidas weakness
Adidas overhead is 13% higher in terms of percentage of revenues than Reebok and 17% higher
than Nike’s. This increased overhead is not a result of an excessive advertising budget, since
only 6% of Adidas sales goes towards advertising and 10% of Nike’s sales goes towards
marketing. The biggest opportunity that Adidas has is to reduce overhead by recognising its
management structure and reducing the price that Adidas pays in leases and rent by divesting its
in-house production facilities. Adidas’s marketing department has become complacent over the
years. Their promotional style of advertising does not work. When going to a professional
sporting event, people do not see the tiny marks on the athletes’ shoes from the upper decks.
Instead, they do see huge colourful billboards with logos such as ‘Just Do It’ and prime time
advertisement f Michael Jordan slamming a basketball in pairs of Nike shoes. Trimming up
Adidas’s overhead costs will free up cash for additional marketing resources and schemes.
Adidas has long lead times on its products and the delivery of its products is not reliable. The
result of these types of problems in its supply chain is a lack of inventory control and the reason
why Adidas has poor control over its inventory and lead the industry in clearance sales at 30% of
production. The distribution information provided in the case writing is not easy to understand. It
does appear from the information given that Adidas’s attempt to sell in the U.S through
subsidiaries places it at a cost disadvantage, since Nike sells directly to distributors.
Adidas Opportunities
Reebok has plans to go head-to-head with Nike for the lead in the professional sporting goods
footwear market segment. Adidas has the opportunity to steal Reebok’s market share in the men
and women’s fitness shoe segment – the largest overall segment-ahile Reebok focuses its
resources on the other areas of the market. Footwear and textiles for fitness activities is by far the
largest growing and the biggest segment of the sporting goods industry. Adidas currently has no
brand or group of products to compete specifically in this market segment. Adidas has the
opportunity, while Nike and Reebok battle over the professional athlete and younger customer
market segment, to cash in on the fitness and fashion conscious market segment. Adidas
currently has a large percentage of sales in athletic apparel. While Nike and Reebok battle it out
over footwear, Adidas could use resources to gain more market share in the apparel market.
Adidas Threats
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Exchange rates are a big threat. During the 1992 environment presented in the case, exchange
rats were favourable for Adidas. Foreign goods were more expensive than Germany’s own
goods. As a result, Germany was more likely to export goods than import. This would include
shoes and favour Adidas in terms of maintaining share lead in Germany. The threat always exists
for this scenario to change, making U.S. goods more appealing to Germany’s citizens. Perhaps
the advantage to Adidas in terms of exchange rates is the only thing supporting its lead in the
European markets.
Adidas does contain the market share lead in sales of cleated shoes for soccer and track and field
type events and overall market share of sporting goods sold in Germany. As Nike and Reebok
continue to dominate other market segments, popularity of their brands in the cleated shoe line
and in Europe could grow, eroding away at Adidas’s last footholds in the sporting goods
industry.
• Adidas Performance
• Adidas Neo
• Adidas Originals
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OBJECTIVE AND SCOPE OF STUDY
SAMPLING METHODOLOGY
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SAMPLING AREA: MUMBAI
Male 83.33 35
Female 16.67 6
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Interpretation
The graphical representation of table shows that out of 42 respondents, 35 were male and 6 were
female
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2) How old are you?
TABLE - 2
AGE PERCENTAGE FREQUENCY
11-16 7.14 3
17-22 40.47 17
23-28 35.71 15
29-34 4.76 2
35-40 9.52 4
41-46 2.38 1
47 AND 0 0
ABOVE
Interpretation
The graphical representation shows that the majority of the respondent was in the age bracket of
17-22.
Q-3) Income level of respondent family.
Table - 3
INCOME LEVEL PERCENTAGE FREQUENCY
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5,00,000 & ABOVE 9.52 4
Interpretation
The graphical representation shows that majority if respondent fall in the income level of 50,000
– 100,000.
Q-4) Which brand has a top of the mind recall?
TABLE - 2
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Interpretation
The graphical representation shows that the Nike is the top of mind brand.
Q-5) Which of the following attribute you associate with sportswear product?
Table - 3
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Interpretation
The graphical representation shows that the most people associate comfortable attribute with the
sportswear brand.
Q-6) Which brand would you consider if you were going to buy a sportswear product?
Table - 4
Interpretation
The adidas is the most considered brand if people were going to buy a new product
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Table - 5
Interpretation
The Pie Chart shows that people buy sportswear product once or twice a year
Table - 6
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Interpretation
The Pie Charts shows that people will definitely recommends the adidas product.
Q-9) On a scale of 1-5 where 1 is poor and 5 is exceptional, rate the brand visibility of
Adidas?
Table - 7
Interpretation
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The Pie Charts shows that the people rated 4 to the brand visibility of adidas
Findings
• Adidas is the most preferred brand if people were going to buy a new product
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Conclusion
• People buy sportswear product once or twice a year so sportswear brand should do the
branding during small tournaments to increases the sale
• Sportswear brand are mostly targeted towards the male, they should also concentrate on
the potential female segment of the market.
• Sportswear product are mostly targeted to youth, they should also expand the target
audience age from 20-50
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Limitations
• A small sample size 35 respondent was taken, so we cannot draw inferences about the
population from this sample size.
• The scope of the project is limited to the city of Mumbai. So, we cannot say that the same
response will exist throughout India.
• Some people were not willing to respond and few of them who responded were in hurry
hence the active participation was lacking.
• Another problem which I faced was that people were hesitating to give information about
their views freely.
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Malaysia, Thailand, China, Jaipur,
Hongkong, Bangalore, Poland,
Lakhani
Manufacturing unit
Institutional Area
Store Store
Store Store Store
1 2
3 3 3
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Figure only include Adidas, Reebok and Adidas Golf
2007
2007
BIBLIOGRAPHY
RESEARCH METHODOLOGY - C.R.Kothari
Web Resources
www.adidas.com/in/
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QUESTIONNAIRE
○ Male
○ Female
4) Which Sport brands are you aware of, Using & Used? [A=Aided, Ug=Using, Ud=Used
in past]
BRAND 1ST 2ND 3RD 4TH Aware Using Used
NIKE
REEBOOK
ADIDAS
OTHERS
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5) Which of the following attributes do you associate with Sportswear products?
□ Affordable
□ Comfortable
□ Stylish
□ Appeal to your Personality
□ Others _______________(Specify if any)
4) Which brand would you consider if you were going to buy a sportswear product?
○ Nike
○ Reebok
○ Adidas
○ Others _______________ (Specify if any)
4) On a scale of 1-5 where 1 is poor and 5 is exceptional, rate the brand visibility of Adidas
merchandise at the venue?
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