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• Nabduan D. ID:5520212002

• Omar N. ID:5520212005

• Raveepitchaya R. ID:5520212007

• Chulaluck C. ID:5520212008 1

• Adidas is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world.

• A German multinational corporation that designs and manufactures sports clothing and accessories.

• Founded: August 18, 1949

• Headquarters: Bavaria, Germany

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FOUNDER

• Adolf "Adi" Dassler

• His brother Rudolf returned to Herzogenaurach to join his younger brother's business

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MISSION

• The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.

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VISION• The company is innovation and design leaders who seek to help athletes of all skill

levels achieve peak performance with every product we bring to market.• The company are consumer focused and therefore we continuously improve the

quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.

• The company are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.

• The company are dedicated to consistently delivering outstanding financial results.

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CORE VALUE• Performance

Sport is the foundation for all we do and executional excellence.• Passion

Passion is at the heart of our company and continuously moving forward, innovating, and improving.

• IntegrityThe company are honest, open, ethical, and fair. People trust us to adhere to our word.

• DiversityThe company takes people with different ideas, strengths, interests, and cultural backgrounds to make our company succeed. We encourage healthy debate and differences of opinion.

BRAND VALUE• Authentic• Passionate• Innovation• Inspirational• Committed• Honest

BRAND ATTITUDEImpossible is Nothing

KEY MARKETS• North America • Russia• Greater China

KEY STRATEGIC PILLARS• Gaining sales and market share with key

growth categories such as Running and Basketball within Adidas Sport Performance.

• Expanding Adidas Sport Style in the fast-fashion business.

• Maintaining adidas Originals’ strong momentum to serve the needs of the fashion-driven lifestyle consumer.

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STRENGTH• Financial strength• Effective marketing strategy, distribution mix,

diverse brand portfolio and Supply Chain Management and Innovations

• Brand Value• The company has worldwide presence and is

internationally recognized.

WEAKNESS• High dependency of raw material prices• Low margin • Poor share price in U.S. Market• Customers have high brand switching

OPPORTUNITIES• Investments focused on highest potential

markets and channels• Technological innovations • Tie-up with emerging sports

teams/clubs/players internationally• Brand building by setting up sports academies

THREATHS• Price fluctuation in raw materials• Unstable currencies exchange• Other brands offer more styles and

varieties• Pirated/fake imitations affect brand

image

Market Segmentation

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GEOGRAPHIC SEGMENTATION: Divided the market into different units of location • Neighborhood, • States, cities • Regions, countries• Adidas Bold 2009 have operated in urban and

semi-urban cities of India.DEMOGRAPHIC SEGMENTATION: Divided into different segments based on the variables of family size, family life cycle, income, gender, age and etc. As follows:

• Age 15-36• Income level: $15,000• Social Class: Upper middle, upper class and

lower upper.• Gender: Both male and female

PSYCHOGRAPHIC SEGMENTATION: Divided different personalities of each consumersand only key is to be different.• Achievers• Well-experienced• Hard workers• Goal achievers

BEHAVIORAL SEGMENTATION: Divided the consumers according to their attitude, knowledge, response and use of the product. Below are the behavioral segmentation for adidas:• Benefits• Gym regular users• Sports lovers• Athletes• Image seekers• Brand freaks

Target Markets

• Sports personalities involved in various sporting activities such as soccer, rugby, athletics and basketball.

• Young people

• Male and Female

• Ages between of 10 to 30

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Product Positioning

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adidas• The brand strive to be the

globally leading and most popular sporting goods brand

• Focus is on innovation and technology

adidas Originals• The first brand leveraging its

sports assets in the lifestyle area

• Regarded as a legitimate sports lifestyle brand.

adidas Sport Style• "Future of Sportswear" • Includes the labels Y-3• Porsche Design Sport

adidas NEO, From the track to the catwalk, it helps you to "Style your Life"

4Ps

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Products 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 , Reebok , TaylorMadeAdidas Golf , Rockport, CCMHockey

4Ps

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Price 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 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.

4Ps

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Place Distribute its products to the consumer

with a strong focus on controlled space, including: Own-retail business, e-commerce, 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.

4Ps

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Promotion 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).

Commercials, ads, apps for smartphones, product placement, sponsorships for athletes and sport events (e.g. Berlin Marathon 2011)

Strategies

Creating shareholder value

Investments focused on highest-potential markets and channels

Creating a flexible supply chain

Leading through innovation

Develop a team grounded in company heritage

Becoming a sustainable company

Brand’s Broad and Unique Product Portfolio

Brand Extension Strategies

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Adidas Core Competencies – Technology– Customer focus– Brand recognition– Supply chain– Collaboratively competitive

Why Adidas is number two ?

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• Nike has an overall better selection of gym shoes, and basketball shoes compare to than Adidas.

• Nike have wider variation of types of shoes which ranges anywhere from boots, to basketball shoes.

• Nike also are endorsed by higher profile athletes than Adidas does. • Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin

Garnett, who is passed his prime. • Nike's shoes are also more stylish, and well known.• Nike have higher modification function for customers on design and technology

How to improve to rank no.1 in this market?

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• Adidas should improve its product lines substantially as variation in products could lead to better and improved sales which form a major objective of any business organization.

• Adidas should concern more on innovation along with strategic partnership, Now, Adidas signed a contract with Samsung to produce a shoe + phone promotional campaign. In this strategic partnership, both the companies developed a phone to be used with shoes during training

• Improve brand association of professionals with Adidas is that it has a culture of technology and has a history of achieving a strong position in the minds of target customers.

• Adidas should work towards improving market share and being at par with Nike which is currently the world leader in Athletic footwear. Adidas should focus on roping in more celebrities to promote their products

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Strategies Map

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2012 2013 2014

Return on Equity(NI/Equity) 12% 12% 12% Measures profitability a company is for the owner of the investment, profitably a company employs its equity. - Accounting, Finance, Management

Net income attributable to shareholders

as a percentage of net sales

Earning per share increased 10%-15% 12%-16% 14%-18% Indicator of the profitability of the company - Accounting, Finance, Management

Operating Margin 8% 9% 10% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing - Accounting, Production, Management

Operating Expenses 40% 40% 40% From using ABC costing,ABM,EmployeeLeadershipProgram 2,500M Accounting, Management

Net borrowing/EBITDA below 2 below 2 below 2 Strong balance sheet increased flexibility to the best interest of sharesholders - Accounting, Finance, Management

Revenue increased 11% 11% 12% From using ABC costing,ABM,BetterSupplyChainProcess,Sales,Marketing,OnlineRetailer 1,500M Accounting, Management,Sales,CustomerService,R&D

Gross Margin 47.50% 48.0%-48.5% 49.00% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing 2,000M Accounting, Management,Production,Purchasing

Increase Share Value Share Price increased above standard 10% 12% 15% Better performance of the company - Accounting, Finance, Management

New customers % increase new customers through registration 10% 15% 20% Promotions/ Advertisment/ Marketing/ New products 200M Marketing, R&D

Customer retention % repeated sales through database 72% 75% 78% Promotions/ Advertisment/New products, good quality,reasonable price 100M R&D, Marketing, Sales Department

Customer satisfaction% repeated sales through database and

surverys95% 95% 95% Value customer project/ Surveys 25-50M HR, Sales Department

Increase demand% increase sales: both new customers and old

customers60% 40% 60% Advertisment/ Marketing, more outlets/ New products 200M R&D, marketing

Reduce standard lead times for footwear and apparel Standard lead times 60 days < 60 days < 60 days

Manufacturing flow mangement process/ Customer service management/ Warehousing management/ Physical

distribution/Increase proximity to sourcing countries 2,000M

Production manager, logistics, customer service, regional

manager

Product development, creation & innovation

1. Increased number of new ideas % increase in R&D expenses 12% 13% 14%

2. Improved quality of ideas No. of successful product launch 17 19 21

Create leadership excellence % global engagement survey 80% 83% 86% Leadership excellence programme / Best-in-class tools 2,300 Senior management

Enabling employee to reach their personal best Annual training hours by employee (in hours) 18 19 20 Targeted development programmes 1,200 All management levels

Employee satisfaction Turn over rate 1% 1% 0%Rewards programme / Global Salary Management System / Bonus programme, Profit participation programme, Long-term

incentive programmes, Champion Bonus 1,900 HR Department

Creating an attractive work environment Average length of service (in years) 5 6 7 Work-life Integration Programme 700 HR Department

Continuing to be the employer of choice Retaining of Top talent employees Recruitment activities / Employee referral Programme 850 HR Department

Number or new system support 2 3 6 Learning Management System / Ask the Management / e-Learning 700 HR Department

Number of employees 42,541 46,824 46,306 Recriutment process N/A HR Department

Reorganization of culture % product defection 25% 20% 15% Internal Training Programmes / Employee engagement surveys 2,300 Production and HR Department

Increase the propotion of women in management % Management position 28% 32% 35% Mixed leadership team / Work-life integration /Gender balance 2,300 HR Department

7,118MReduce product and supply chain cost Production manager, plant manager

N/A

Creating long-term value 20%-40% 20%-40%

Sustainable company

Revenue growth

% change in cost of sales 11.30% -7.00% -10%

Production creation system/Quality control management 130M Research & Develop manager/ Quality control manager

Cycle process system/ Supply chain and inventory management

Customers

Perspective

Champion

Learn & Growth

Perspective

TargetsPerspectives Objectives Measurements Programs Budget (€)

Online communication platforms to drive employee engagement and learning

Internal Process

Perspective

20%-40% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing 2,600M-5,200M Accounting, Finance, Management

Financial

Perspective

Balance Scorecard

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34Financial Perspective

Customer Perspective

Internal Process Perspective

Learning and Growth Perspective

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Balance ScorecardLearning and Growth Perspective

Balance ScorecardInternal Process Perspective

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Balance ScorecardCustomer Perspective

Balance ScorecardFinancial Perspective

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