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PROJECT REPORT

ON

MARKETING STRATEGIES OF ADIDAS

(A CASE OF N.C.R)

SUBMITTED TO SUBMITTED BY

GAURAV CHHABRA

BBA (B&I) 3rd sem

Roll No. 04724001810


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TABLE OF CONTENTS

INTRODUCTION TO THE STUDY

OBJECTIVES OF THE STUDY

PURPOSE OF THE STUDY

COMPANY PROFILE


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CHAPTER-1

INTRODUCTION TO THE TOPIC

My project topic is "Adidas" which is a shoe company and I am analyzing its

Marketing Strategy. I have chosen this particular topic mainly for two reasons. Since

our childhood days we had great interest in the shoes and we like to buy new shoes as

and when it comes in the market. The Shoe Company that we most admire is Adidas.

Hence we have decided to do my project report on this company.


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OBJECTIVE OF THE STUDY

1. To understand why customers prefer to buy products of Adidas.

2. To know the marketing opportunities for the company.

3. To understand marketing problems faced by Adidas.

4. To help in the selection of right course of action.

5. To know about customers acceptance of the product.

6. To understand the distribution network.

7. To forecast the probable volume of the future sales.

8. To analyze the expected market share.

PURPOSE OF THE STUDY

An advertising strategy is designed to sell a product. It is a one-way form of

communication, from company to consumer, geared toward giving consumers

the information necessary to make a purchasing decision. Advertisements tell

consumers about the product and how to get it. The purpose of advertising is

to sell products and to build brand name. Advertising strategies are long term

and designed to build brand name and increase sales through repetition.

Advertising campaigns can cost a great deal of money and may not show

immediate results. The advertising strategy is ideal for medium to large

companies with brand recognition. Examples of advertising strategy include

scripted commercials, magazine advertisements and radio announcements that

inform the consumer about a product.


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CHAPTER- 2

COMPANY PROFILE

Name of the firm- Adidas

Address- 645 Fifth Avenue, New York, NY 10022. United States.

Telephone no -212-407-8000E-mail id -

www.adidas.com/uk

Nature of organization- Trading

Write Indian headquarters
http://www.adidas.com/ukhttp://www.adidas.com/ukhttp://www.adidas.com/ukhttp://www.adidas.com/uk


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Brief History:In the small German village ofHerzogenaurach the world began its

love affair with Adidas (Rynos Company History). In 1920, Adolf Adi Dassler

brought to life those three little stripes. With his brother, Rudolph, Dassler

manufactured his first sports shoe, made for training, after realizing the need for

performance athletic shoes. In1948, the Dassler brothers separated to form their own

two separate companies. Dassler formed Adidas and his brother formed Puma, both

headquarters in Herzogenaurach.

The Adidas mission has changed little since founder Adi Dassler beganmaking sports shoes in the 1920s: to be the best sports brand in the world.

The history of Adidas is one of consistently meeting the evolving needs of the

athlete. Focusing more on function and less on fashion, Adidas strives to

provide athletes with shoes that can make a noticeable difference in their

performance. Meeting athlete needs is what makes Adidas the best. Adidas

America has continued to build on this history.

In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing

company founded by former Nike executives Rob Strasser and Peter Moore. Sports

Inc. had been working in conjunction with Adidas USA on the design, development,

and marketing of the Adidas Equipment line. This line helped rejuvenate and

reposition the Adidas brand in the United States by creating an exclusive line focused

on fulfilling the functional needs of the athlete and by utilizing the best materials and

athlete input in the tradition of Adi Dassler. It offered moisture management, thermal


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insulation, weather protection, ease of movement, and safety, helping the athlete to

perform more efficiently. After the successful creation and launch of Adidas America

General Information

For over 80 years Adidas has been part of the India of sports on every level,

delivering state-of-the-art sports footwear, apparel and accessories. Today, with total

net sales of 6.1 billion and net income of 208 million, Adidas - Salomon is a global

leader in the sporting goods industry and offers the broadest portfolio of products.

Adidas-Salomon products are available in virtually every country of the world. Their

strategy is simple: continuously strengthen our brands and products to improve our

competitive position and financial performance.

The company's share of the world market for sporting goods is estimated at around 15

percent.

Activities of the company and its approximately 100 subsidiaries are directed from

Adidas-Salomon AG's headquarters in Herzogenaurach, Germany. Also located in

Herzogenaurach are the strategic business units for Running, Soccer and Tennis as

well as the Research and Development Center. Additional key corporate units are

based in Portland, Oregon in the USA, the domicile of Adidas America Inc. and home

to the strategic business units Basketball, Adventure and Alternative Sports. The

strategic business unit Golf is based in California. The business unit Winter Sports is

in Annecy, France. The company also operates design studios and development

departments at other locations around the world, corresponding to the related business

activity. Adidas-Salomon AG has approximately 13,400 employees worldwide.


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Turnover and Brand Image

The turnover of Adidas Company has grown to 45 Million Rs. in 2005. Almost 53%

of the turnover is from sale of apparel and accessories with the rest from footwear.

The Adidas brand is one of the most popular brands as determined by a within brand

survey of sportswear brands in the year 2005.

53%

47%

Sales

apparel and accessories

footwear


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FUTURE PLANS

Turnover is expected to rise to 550 million rupees for Adidas India in 2006. Cash

break even is fore cast during calendar year 2004 and an operating break even during

2005. The other Adidas owned brands, salomon & taylor made are expected to hit

Indian Adidas stores during 2005 and 2006.

HISTORY OF THE COMPANY

THE TIMELINE OF THE COMPANY

1948

The Dassler and his brother Rudolph and Adolph, separate and two companies. Adi

Dassler forms adidas-a combination of his nickname, Adi, and the first three letters of

his last name a lowercase a is adopted to further distinguish adidas. He commences

production with 47 employees. Rudolph forms Puma, with its headquarters located

across town from adidas in Herzogenaurach.

1949

Adidas adopts the trademark three-stripes.

1955

The first license is given to a factory in India to manufacture adidas shoes.

1972

Adidas introduces the Trefoil logo.

1984

Kathe Dassler dies, leaving the company to Horst, the Dasslers first-born.

1987

Horst dies at the age of 51.Ron more is brought in from adidas Canada to run

operations and a new facility is acquired in Warren, New Jersey.

1988

Adidas is incorporated.

1989


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Rob Strasser and Peter Moore of Sports Incorporated present adidas with the

Equipment concept. The footwear and apparel line is introduced in 1991.

1990

Bernard Taupie purchases 80% of adidas stock.

1993

A group of investors led by Robert Louis-Dreyfus, former head of the British

advertising group Saatchi & Saatchi P.L.C., acquires control of adidas. Adidas

America is formed in February; Rob Strasser is appointed CEO and Peterr Moore

becomes Worldwide Creative Director. Rob Strasser dies on October 30. Peter Moore

is named CEO of adidas America n November 9, while maintaining his role as

Worldwide Creative Director.

1994

Adidas moves from eighth to third position in Indian Footwear Industry Rankings.

Indian Footwear and apparel sales increase by an estimated 75%.

1995

Adidas goes public on the stock exchange in Frankrurt.

1997

Performance Logo becomes the worldwide adidas logo.The acquisition of Salomon

broadens the Adidas product range to include Taylor Made for golf products and

Mavic for cycle components.Adidas achieves record sales and passes the 1 billion

dollar mark in gross sales in the India.

2000

Adidas proudly celebrates the 100th

birthday of our founder, Adi Dassler

The Salomon Group (including Salomon, Mavic, Bonfire, Clich and ArcTeryx) 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.


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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 Groupwill 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.

THE TECHNOLOGY TIME LINE OF THE COMPANY

1925

Leather soccer shoes with nailed studs and track shoes with hand forged spikes are

produced for the first time in the Dassler factory.

1928

Dassler purchases his production building in Herzogenaurach. 100 pairs of shoes are

produced daily.

Late 1920s

Dassler begins producing soccer balls.

1929

Dassler fills his substantial order of 10,000 pairs of shoes.

1930

Dassler introduces soccer shoes with nail-stripe trim.

1931

The first tennis-specific shoe earns one of the more than 700 patents awarded to Adi

Dassler.


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1935

400 pairs of shoes are being produced daily.

1937

Dassler now produces shoes for eleven sports. 800 pairs of shoes are

produced daily.

1940s

Dassler produces sports shoes made of sailcloth from military tents and rubber from

leftover American fuel tanks after World War II.

1946

Dassler introduces arch support lacing and an early type of speed lacing.

1948

Adidas develops the first indoor track shoe.

1949

Adidas produces the first soccer shoes with molded rubber studs.

1950

Adidas produces the first Samba soccer shoe, made for better traction on ice, snow

and hard frozen ground.

1953

Adidas produces the first track shoes with changeable spikes.Adidas

produces the first sports bag.

1954

Adidas begins producing soccer boots with screw-in studs, helping Germany

win the World Soccer Championships in Switzerland. The screw-in studs

enable the game to be played under vastly different conditions without

slipping.2, 000 pairs of shoes are produced daily.

1956


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Adidas develops nylon soles for soccer shoes.

1957

Adidas produces the first track shoe with nylon half-soles.

1960

Adidas develops a rubber toe protector and rubber foxing for the training

shoe.

1963

Adidas introduces nylon half-soles with molded in-thread inserts.

1964

Adidas introduces outsoles with bending zones, which provide flexibility.

Adidas produces a track shoe weighing only 96 grams, the lightest track

shoe in the world at that time.

1967

Adidas develops heel padding to protect the Achilles tendon.The first adidas

tracksuit is produced.

1968

Adidas introduces injection-molded, multi-studded, polyurethane

soles.Achille, the first real jogging shoe, is launched on the market.Adidas

introduces the adilette health sandal.

1972

Adidas introduces rain soles.

1973

Adidas introduces the plastic Ghilly lacing system.

1973

Adidas introduces adicourt sole for indoor tennis surfaces.

1974


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Adidas begins tennis racket production.Adidas introduces its first leisure

shoe.

1975

Adidas introduces the adistar 2000, the first track shoe for syntheticd

track surfaces.

1976

Adidas introduces the first cross-country ski binding.Adidas introduces

TRX jogging shoe

1977

For the first time a soccer shoe is developed with a dual-density sole

material. The Copa Mundial, the worlds largest selling soccer shoe ever,

is launched.

1979

Adidas introduces shock-absorbing elements for sports shoes. Adidas

introduces outsoles with beveled studs.

1982

Adidas develops soccer shoe sole materials in three different degrees of

hardness.

1985

Adidas introduces the APS, the first running shoe with an adjustable

shock absorption system.


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1986

Adidas introduces the first soccer shoe with bayonet fastening and ceramic screw-in

studs.

1988

Adidas introduces the Torsion system, which allows for multi-directional flexibility. It

was designed to give the midfoot support during twisting and flexing motions, and

proves to be revolutionary in the sports shoe market.

1991

Launch of the Equipment line: a new, performance-oriented and functional,

shoe and textile line.

1993

Adidas lunches Tubular Technology, the first shoe with total

customization possibilities.

1994

Predator technology for soccer footwear results in more powerful, accurate

shots.

1995

Traxion Technology combines the grip of screw-ins with the comfort of

molded cleats.Adidas introduces Point of Deflection System technology

for running shoes. This outsole technology provides improved shock

absorption and stability by deflecting and dispersing pressure at the point of

impact.


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FOOTWEAR TECHNOLOGIES

AdiPRENE

Shock absorbing material under the heel.

Provides heel cushioning and stability.

Provides extra absorption of harmful impact forces.

Adds stability a ground contact.

Elastic material under the forefoot.

Allows a more efficient push-off.

Retains natural forces at toe-off for added forefoot efficiency. Maximizes energy use.


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TORSION

Helps control of the natural independent rotation of the heel and forefoot.

Creates stability and control.

Helps the forefoot adopt to surfaces easily.

Maintains mid-foot support.

TRAXION Lugs in shoe bottom provide optimal ground penetration and maximum grip.

Lug placement optimizes comfort while increasing surface contact.

Adds stability at ground contact.

Meets the specific needs of different sports and surfaces.

PRO-MODERATOR

Usage of TPU as lightweight mid-sole support system reduces weight of shoe

giving greater mobility.

Improved durability of mid-sole adds to life of shoes providing consistent and

stable run.

Direct moulding on mid-sole frees your foot from thick inserts giving improved

toe-all.

GEO-FIT FRAME An Internal footwear technology that enhances fit and comfort by placing padding

in anatomically correct areas.

Every piece of anatomically moulded padding follows the form of the foot, evenly

distributing pressure for the ultimate fit.

Improved padding means improved comfort. Improved comfort equals

an enhances sense of stability, further providing more protection.

It eliminates the internal heel counter by extending the TORSION bar to act as an

external heel counter, thus reducing weight.


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QUICK STRIKE Light outsole improves flexibility.

Abrasion resistant lugs absorb impact.

Precise location of outsole lugs-gives consistent performance.

Improves cushioning and durability.

Adi WEAR

A non-marking rubber outsole compound that offers better abrasion resistance

than any other outsole material.

Adi TUFF

An abrasion resistant material used in the toe and / or lateral forefoot of the

shoes upper it protects the upper from excessive wear.

Hierarchy, employees, market share,positioning


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