adidas brand extension_abhinav goyal_pgp30416

Adidas Brand Extension

Abhinav GoyalPGP30416Section B

INTRODUCTION•Adidas Inc. is the German manufacturer, a marketer of

sport apparel and athletic shoes.

• The company was named its founder, Adolf(Adi) Dassler, in 1948.

1970

Soccer Balls

1991

Adidas Equipments

1954

Footwear

1965

ApparelBrand Extension Over the Years

Market size: INR 242 bnGrowth rate(2009-14): 17%Growth rate expected ( 2014-18): 13%

Adidas Market size: INR 25.3 BnGrowth rate(2009-14): 15.4%Growth rate expected ( 2014-18): 15%

Market Share: Sportswear in India

Adidas Market Share: Sportswear in India

INDUSTRY ANALYSIS

2010 2011 2012 2013 2014

101 bn 127 bn 157 bn 196 bn 241 bn

Market Share of Sports Wear in India (in INR)

2010 2011 2012 2013 2014

8.89% 9.13% 9.06% 10% 10.3%

Adidas : Percentage share year wise

INDUSTRY ANALYSIS -- MARKET SHARE

Market Share

Nike adidas Reebok Power Puma Others0

5

10

15

20

25

30

22.94

25.29

28.24

7.65

2.35

13.53

Adidas spends a lot on marketing

TARGETING

Age

All Age group

Attitude

Bold, & fashionable

Adventurous

occasion

Daily

Casuals

Sports

Price

Low price

Medium Price

High Price

gender

Men

Women

Unisex

Target Segment Demographic:Age: 8-60Gender: Male/FemaleOccupation: Any

Target segment include anyone who is into running or any kind of sports.Also include people looking for sports apparel

POSITIONING

IT’S ALL ABOUT CREATING VALUE

THANK YOU

PERCEPTUAL MAPSport Tees

Nike

Reebok

Adidas

Puma

4 P’s of Marketing Mix

QUALITYBuilt with best available technology

DIFFERENT SPORTS• Basketball, Gym, Running, Football, Cricket, Baseball

VARIETY

Style Options according to the personality: Sports, adventure, funk

PromotionPromotion PlacePlace

ProductProduct PricePrice

EVERYTHING is on the portfolio for all the SPORTS

4 P’s of Marketing MixPromotionPromotion PlacePlace


PRICE POINT:INR XXX9INR XX59

PRICING STRATEG

Y:AFFORDABLE

TO YOUTH

SALES STRATEG

Y:DISCOUNTS ON

YOUTH FESTIVAL

BUYING QUEUE:

PRICE FIGURES END WITH 45

OR 95

4 P’s of Marketing MixPromotionPromotion


PlacePlace

• Adidas outlets

• Online purchasing through the internet

• Distributing some of the Adidas products to the various sporting outlets e.g Royal Sporting House, World of Sports, Sportslink

4 P’s of Marketing Mix ProductProduct PricePrice

PlacePlacePromotionPromotion

Advertising and public relation

Sales promotion

Brand ambassadors

Consumer promotion- signed goodies by celebrities on repeat purchase

Trade promotion-Display material assistance

https://www.youtube.com/watch?v=hIqC9IYMUOULINK to Videos

SWOT AnalysisSTRENGTHS:•Long heritage and high brand value.•Worldwide presence. •Diversified product portfolio.•Strong and innovative marketing have created a strong brand retention.

WEAKNESSES:•The products can sometimes be costly due to innovative technology or production method.•Stiff competition and similar big brands means customers have high brand switching.

OPPORTUNITIES:•New foot-friendly designs are developed each year.•Tie-up with sports teams/clubs internationally.•Brand building by setting up sports academies.

THREATS:•Other brands offer more styles and varieties, thus more competition.•Pirated/fake imitations affect brand image.

COMPETITORS - POP & PODPOINTS OF PARITY

• World wide presence • Covers All the

sports • Sports

accessories• Authentic Wear• All age group is

targeted

Competitor’s Place comparisonDigital Channel

Nike Adidas

Point of Parity

Physical Channel

https://www.youtube.com/watch?v=OZtnajpnsD0

Competitor’s Product comparison

Edge Air cushion Technology

Cooling technology - SHOE

Point of Difference

Competitor’s Price comparison

Basket Ball ShoesNike

Adidas

Adidas is cheaper on shoes over its main competitors

This strategy is consistent with all product range from apparel to gadgets

Point of Difference

Adidas Brand Extension PositioningPerformance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training

Special innovative solutions for promoting running, exercising and playing sports – Remain Fit Safely

Brand Equity

Nike adidas Reebok Others0

5

10

15

20

25

30

35

40 38.14

33.9

21.19

6.78

SUMMARYIndustry AnalysisMarket ShareTargetingPositioningLogosPerceptual Map4P’sSWOT analysisPOP POD analysisBrand Equity

Prof. Sameer MathurIndian Institute of Management LucknowMarketing Professor: August 2013- Present

McGill UniversityMarketing Professor : July 2009 – July 2013

Carnegie Mellon UniversityPh.D. in Marketing : August 2003 – June 2009

These slides were created by Abhinav Goyal, PGP30416 , IIM Lucknow , as a part of MBA course “Brand Management” (www.MBASkills.in) taught by Prof. Sameer Mathur

http://www.mbaskills.in/