Professional Documents
Culture Documents
INTRODUCTION
The company’s clothing and shoes designs typically feature three parallel
bars, and the same motif is incorporated into Adidas’s current official logo.
Adidas headquartered in Germany, is regaining its position as one of the
leaders in athletic footwear, after being close to bankruptcy in 1993.Adidas
currently has about 17% of the market share in the USA (Anonymous,
2000).When Adidas merged with SALOMON (a French manufacturer of skis
and golf clubs) in 1997 for $.4 billion, many outsider saw it as a bad strategic
move .In the past, Adidas has the global dominance, but in this decade NIKE
has taken over that position. Similar to Nike Adidas is restructuring by
streamlining the product range. Adidas-Salomon designs, develops and
markets a broad range of athletic and active lifestyle footwear, apparel and
hardware products under Adidas, Salomon, Taylormade, Mavic and Bonfire
brand names.Adidas-Salomon product are sold in over 160 countries in the
world .
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Adidas-Salomon has athletic shoes from tennis to basketball and now, with
the purchase of Salomon, they offer ski, golf, and bike gear. Although, many
offline retailers offer these items, they are not yet available at
Adidas.com.The website offers most of their athletic shoes line and many of
their athletic apparels. The prices of the items are comparable to those in the
retail store. Adidas.com offers a number of their athletes like Kobe Bryant,
Anna Kournikova and Peyton Manning commercials online and provides the
user with insight on each of them. In addition to using these athletes,
Adidas.com uses the promotional strategies to attract the customers to their
website by offering a trip to Yankees Stadium and meeting the team.
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ADIDAS AG
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HISTORY
ADOLF (“ADI”) DASSLER started to produce his own sports shoes in his
mother’s wash kitchen in HERZOGENAURACH, BAVARIA, after his
return from world war 1.In 1924; his brother RUDOLF (“RUDI”) DASSLER
joined the business which became GEBRUDER DASSLER
SCHUHFABRIK(Dassler brothers shoe factory)and prospered. At the 1928
Olympics, Dasslerequipped several athletes, laying the foundation for the
international expansion of the company. During the 1936 summer Olympics
on BERLIN, Dassler equipped quadruple gold medal winner Jesse Owens of
the USA with his shoes .Late in the world war2, the shoe factory shifted to
production of the PANZERSCHRECK anti-tank weapon. The brothers split
up in 1948 with RUDI forming PUMA, and ADI forming ADIDAS.The
company formally registered as ADIDAS AG (with lower case lettering)on
18th August,1949.Thephrase” ALL DAY I DREAM ABOUT SPORTS”,
although sometimes considered the origin of the Adidas name, was applied
retroactively. The name actually a portmanteau from “ADI”(a nickname from
Adolf) and “DAS” (from “Dassler”).
ADIDAS IN INDIA
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produced Adidas range in India. Around 30-40% of the components are
locally sourced.
The three stripes mark is without doubt the quintessential Adidas symbol. It
was created by the Adidas company founder, AdiDassler ,and first used on
footwear in1949.Dassler created a symbol that could be immediately
recognized when his footwear was used in athletic competition and associated
with Adidas.He emphasized the association with the slogan ”The Brand With
The 3 Stripes”. The 3-stripes were first used on apparel in 1967. The 3-stripes
now enjoy worldwide recognition as an Adidas symbol.
In the late 60s Adidas expanded into the leisure and apparel sector and this
promoted Kathe and AdiDassler to seek a new, additional identification mark
for the Adidas brand. In August 1971, the Trefoil was born, out of more than
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100 ideas. Inspired by the 3-stripes, it is a geometric execution with a triple
intersection, symbolizing the diversity of the Adidas brand.
This symbol was first used on Adidas product in 1972, and later became the
company’s corporate symbol. Today it plays the important role of
representing the Adidas Originals collection.
In August 1998, following the merger of Adidas and Salomon, the then
named ADIDAS-SALOMON introduced a new corporate logo. The logo
unites the value of the brands of the Group, incorporated the typical colour of
the two previous groups: blue for Adidas and red for Salomon. The logo
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shows three shapes coming together to form a large shape, namely a diamond.
The space between the shapes forms another shape, that of a person with arms
raised in victory and celebration. This logo appeared on all corporation
document of the then named Adidas-Salomon AG, but not on the products.
The product in the Adidas sports performance division are developed for the
sports performance market but have design appeal encouraging consumers to
wear the product both on and off the court or playing field.
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1949
The foundation
50s
60s
Higher
70s
Crowning moment: Franz Beckenbauer, the "Kaiser", raising the World Cup in
victory salute. Germany had just beaten Holland 2-1 in the 1974 final.
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80s
The transition
After AdiDassler's death, Adi's wife Kathie, his son Horst, and his daughters carry
on the business.
90s
1995
1996
A splendid year
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1997
adidas-Salomon AG
adidas AG acquires the Salomon Group with the brands Salomon, Taylor Made,
Mavic and Bonfire in December 1997. The new company is named adidas-
Salomon AG.
1999
The integration of the new brands is gaining momentum. The new Taylor Made
Fire Sole clubs boost sales. Salomon in-line skates take off with high double-digit
growth during the first half of 1999.
2000
New management
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2005
Sale of Salomon
The Salomon Group (including Salomon, Mavic, Bonfire, Cliché and Arc’Teryx)
is being sold to Amer Sports in October 2005. The new adidas Group is focusing
even more on its core strength in the athletic footwear and apparel market as well
as the growing golf category. The legal name of the company will change to
“adidas AG” in May/June 2006.
2006
The closing of the Reebok transaction on January 31, 2006 marks 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 Group will
benefit 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.
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Vision and mission
VISION
"Impossible is Nothing" is the current mainstream marketing slogan for
Adidas.
MISSION:
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Industry profile
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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BOARD OF DIRECTORS
Former management
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CHAPTER 2
PRODUCTS
Running
Association football
One of the main focuses of Adidas is football kit and associated equipment.
Adidas also provides apparel and equipment for all teams in Major League
Soccer. Adidas remain a major company in the supply of team kits for
international football teams. Current examples include Spain, Russia, France,
Germany, Greece, Romania, Argentina, Mexico, South Africa, Japan and
Nigeria.
Adidas also makes referee kits that are used in international competition and
by many countries and leagues in the world. In the United States, referees
wear the Adidas kits in MLS matches even though the primary referee
supplier is Official Sports.
The company has been an innovator in the area of footwear for the sport with
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notable examples including development of the Copa Mondialmoulded boot
used for matches on firm dry pitches for almost forty years. The studded
equivalent was named World Cup follow in celebration of the 1978
tournament won by Argentina, one of the nations it supplied at the time. Some
of the famous football teams currently sponsored by Adidas include Real
Madrid, Milan, Middlesbrough, Palmeiras, Chelsea, River Plate, Liverpool,
Marseille, Universidad de Chile, Bayern Munich, Schalke 04, Benfica,
Wolfsburg, Galatasaray, Panathinaikos, Derby County, Ajax and Lokomotiv
Moscow among others.
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
Johnston-invented Traxion sole
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
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Response for the "club player", Adidas targets the "tournament player" with
the 12.2 oz Barricade tour model. Adidas sponsors the following professional
players: Jo-Wilfred Tsonga, DinaraSafina, Ana Ivanović, Daniela
Hantuchová, Andy Murray, Fernando Verdasco, Gilles Simon, Marcos
Baghdatis, Fernando González, Marat Safin, FlaviaPennetta and upcoming
players like Melanie Oudin, SoranaCirstea and GrigorDimitrov. Adidas tennis
apparel contains the ClimaCool technology found in other athletic jerseys and
shoes.
In Cincinnati, at the ATP Tennis Tournament in Mason, they have also
sponsored the ball-boy and ball-girl uniforms.
olf
Cricket
In the 1990s, Adidas signed the world No. 1 batsman Sachin Tendulkar and
made shoes for him. He is still wearing Adidas shoes when he plays matches.
Adidas even made action figures after Sachin Tendulkar.
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 BellPakistan player Salman Butt
and Indian Player RavindraJadeja. Having made cricket footware for many
years, the company finally entered the field of bat manufacture in 2008 and
their products are available in the Incurza, Pellara and Libro ranges
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Adidas also manufactures the uniforms worn by both the England cricket
team and the Australian cricket team.
In 2008 and 2009 in both the seasons of the Indian Premier League (IPL), it
took up the sponsorship of the Mumbai Indians and the Delhi Daredevils.
In 2009, Adidas signed Sachin Tendulkar and started sponsoring his bat. It
created a new bat 'Adidas ST' for him and 'Adidas Pellara KP' for Kevin
Pietersen, the same year. Now both of them use their personalized bats in
cricket.
Basketball
Adidas has been a longtime basketball shoe manufacturer and is one of the
leading basketball brands in the world. They are most famous for their iconic
Superstar and Pro Model shoes, affectionately known as "shelltoes" for their
stylized hard rubber toe box. These were made very popular in the 1980s hip
hop streetwear scene alongside Adidas' stripe-sided polyester suits.
Lacrosse
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Rugby
Adidas make rugby balls and other rugby gear. They are the current kit and
ball supplier to the New ZealandAll Blacks, IrishMunster Rugby, and the
Argentinian Pumas, among others.
Gymnastics
Since 2000, adidas has provided men's and women's gymnastics wear for
Team USA, through USA Gymnastics. In 2006, adidas gymnastics leatards
for women and adidasmens comp shirts, gymnastics pants and gymnastics
shorts have been available in the USA, with seasonal leotards offered for
Spring, Summer, Fall and Holidays. Starting in 2009, adidas gymnastics wear
has been available worldwide through GK Elite Sportswear.
Skateboarding
Adidas Skateboarding also has a skateboarding team. The team consists of:
Mark Gonzales, Dennis Busenitz, Tim O'Connor, Silas Baxter-Neal, Pete
Eldridge, Dave Bachinsky, Benny Fairfax, Nester Judkins, LemVillemin, and
Vince Del Valle.
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adidas took sport electronics and personalisation to a new
level. The first intelligent shoe not only senses every step
you take, but understands that your cushioning needs
change with faster or slower speed and the different
surfaces of the ground - and adapts the cushioning
respectively. Wh
of your life.at’s in it for you? The most personalised run
Adidas and Disney produce a range of kids wear featuring Mickey mouse and friends
Minnie Mouse is the key character on the girls’ apparel, with her lady-like
image featured on tees and caps. Feminine accessories complete the outfits:
matching trolley bags for apparel and footwear, caps with recurring graphics
of Mickey Mouse or Minnie Mouse and cozy cotton socks.
Adidas equips over 1,000 athletes for the Vancouver 2010 Winter Olympic Games
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weeks, athletes from more than 80 nations are fighting for gold, silver and
bronze and the brands of the adidas Group are in the middle of it all.
I n May 2009, adidas and Reinhold Messner renewed their partnership and
launched a new product concept: SUPERTREKKING. adidas cooperated
with Reinhold Messner back in 1978, developing the SUPERTREKKING
LTD. This shoe accompanied Reinhold Messner on his expedition when he
was the first man to ascend Mount Everest without supplemental oxygen. The
trekking shoe which Messner wore until he reached base camp became a
bestseller and legend in the outdoor scene. Around 30 years later, adidas is
now presenting a new edition of the successful shoe and is transferring the
philosophy behind this development also to apparel and backpacks -
lightweight, reduced, and functional.
A leading football producer. Still, it took adidas well over three years of
extensive research and development to present the adidas
JABULANI, its best performing ball ever. The didas has been producing
high-performance match balls since 1963 and is the world’s newly developed
“Grip’n’Groove” profile provides the best players in the world with a ball
allowing an exceptionally stable flight and perfect grip under all conditions.
Comprising only eight, completely new, thermally bonded 3-D panels, which
for the first time are spherically moulded, the ball is perfectly round and even
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more accurate than ever before.
Match Ball for the 2010 FIFA World Cup South Africa
F irst under the toughest laboratory conditions possible, later also with
professional players and clubs on the field of play. Scientific tests were
conducted together with the Sports Technology Research Group of the
University of Loughborough in England, one of the leading institutions of its
kind worldwide.
The name ”JABULANI” originates from the Bantu language isiZulu, one of
the eleven official languages of the Republic of South Africa, which is spoken
by almost 25% of the population. Literally translated, “JABULANI” means
“to celebrate”. Football is a passion that unites the world. The name of the
new match ball appropriately pays tribute to the passionate football
celebration international fans will enjoy in South Africa next summer
The 2010 jersey design is made from a special mesh material that appears
similar to the shirt fabric from 1986, although engineered for better air
circulation and moisture management. The distinctive blue and white colors
on both sides of the home jersey representing the country's flag colors, in
addition to a re-introduction of the crest used in 1986, will stir the emotions of
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players and fans.
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products to the ultimate test when they went on an expedition to Antarctica.
Even though temperatures dropped below -50 degrees Celsius during the trip,
the Huber Brothers were in good hands: The lightweight, breathable adidas
Outdoor product offers superior water repellency, so the body remains dry,
warm and comfortable even under the most extreme conditions.
I n May 2009 Lionel Messi presents the new F50i football boot.
Pioneering technologies and outstanding design make for the perfect
football boot for players who can decide a game with their brilliance and
inspire their teammates.
The F50i is the first football boot with a single-layer upper, the new
SprintSkin. The SprintSkin envelops the player’s foot like a second skin. The
synthetic material is both supple and water-repellent and always provides a
perfect fit. The single-layer SprintSkin further reduces the weight of the boot
without compromising on the stability that is so crucial for the footballer.
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MARKETING STRATEGY
Adidas is being torn apart in marketing by Reebok and Nike. In order for
Adidas to regain the lead in the sporting goods business a new marketing
strategy should be developed. Adidas should create an independent brand
name for a fitness line of shoe that appeals to both males and females. Adidas
have some of the top U.S and European fitness instructors, trainers, super
models and actors and actresses endorse the product. Adidas should forget
about the American football, baseball, and basketball markets. Let Nike and
Reebok fight over this territory.
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Reduce sourcing and production lead times to four months. Start by
outsourcing all production to independent manufacturers. Get rid of all
production in Europe and send to Asia, where costs are lower. For U.S
market, outsource production to U.S based facilities or to South American
facilities and sell directly to retailers in the U.S. instead of subsidiaries.
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ADIDAS STRATEGY
Adidas’ mission is to be the leading sports brand in the world. One major
lever to achieve this is the brand’s broad and unique product portfolio
spanning from apparel and footwear for professional athletes to premium
fashion. It allows adidas to address multiple consumer needs, exploit market
opportunities from various angles as well as be less affected by one-
dimensional market risks. adidas’ commitment to product innovation and its
rich heritage differentiates the brand from competitors and provides a solid
platform for future growth.
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GROUP STRATEGY
Our goal as a group is to lead the sporting goods industry with brands built on
a passion for sports and a sporting lifestyle. We continuously strive to
generate consumer excitement and enhance brand profitability by executing a
clear strategy. In everything we do, we are focused on strengthening and
developing our brands to maximize the Group’s operational and financial
performance and create shareholder value.
1. Performance as core Group value.
4. Customizing distribution.
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4’PS OF MARKET
MARKETING MIX
PRODUCTS
2. Hard Ground
3. Firm Ground
4. Turf Rugby
5. Astroturf
6. Leisure wear
7. Asphalt
8. Multi Surface
9. Rugby
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Men Accessories: Bags Eye Wear, watches Hardware Waterbottles, Yoga,
Mats, Fitness (Gripper) Spiking Football Pump, Wrist Band, Padding,
Football, Basketball
PRICING (GLOBAL):
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.
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PLACE:
Major retail outlets in India:
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PROMOTION:
Promotion partnership:
1. IHF Men’s World Championship, Croatia January 16 – February 1,
2009
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10. Adidas Official Partner of Federation International de Football
Association MLB All Star Game, St.Louis/Missouri, USA July 14,
2009
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DISTRIBUTION CHANNEL OF ADIDAS
(DistributionCenter)
S S
t S t
t S S
o o
o t t
r r
r o o
e e
e r r
e e
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Market Segments:
R&D done by coaches, athletes, and trainers. Have Air Sole Technology
developed by NASA engineer. Pump andHexalite Technology. Torsion
Technology. The market and sales department contains the R&D department
COMPETITORS
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CHAPTER 3
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
hugecolourful 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 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 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.
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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.
Emerging Markets
Economies that are small, but that have the potential for growth in size and
importance in coming years. For the Adidas Group, emerging markets are the
developing countries of Asia, Eastern Europe, Latin America and Africa.
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Fast-Growing Women’s Segment
Adidas Threats
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.
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Saturation and increased competition, intense marketing campaigns increasing
competitive pressures.
Shifts in the exchange rates affecting profits and cost of raw materials.
Predictions of a downturn in the economy e.g. recession, will affect purchases .As
household budgets is in control this could lead a decline in new sales and possible
rationalization of dealerships.
Adidas (overview)
Strengths Weaknesses
-Strong success in Europe -American athletes
-High-performance endorsed by Adidas are
products not as
-Recent selling of popular as Nike’s
subsidiary “dog” Salomon -it is gaining ground on
European soccer market
-Public dissent over use
of sweatshops
Opportunities Threats
-Acquisition -Foreign exchange rates
-Growing strength in golf will result in loss of
industry through Tailor- actual profits
Made
and recent acquisition
of Max fly
-Growing revenue from \\
opening of own retail
stores
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CHAPTER 4
CONCLUSION
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CHAPTER 5
New type of apparels are being produced continuosly as per the requirements of
its customers.
New discount and exchange offers are introduced frrequently to cater to its
existing customers.
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BIBLIOGRAPHY
JOURNALS
ADIDAS VERTICAL
OTHER WEBSITES
www.scribd.com
www.adidas.com
www.adidas-group.com
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