1Public Relations Project Topic - Nike V/S Adidas

Lala Lajpat Rai College

Public Relations Project

Rough Draft

Topic: Nike V/S Adidas

Submitted To: Proj. Mithil Shah

Submitted by:

Shumaila Ansari (9100105)

Pallavi Arora (9100107)

Nikitha D’souza (9100122)

Aman Dedhia(9100126)

Rohan Grover(9100138)

Hassan Husseini(9100142)

2Public Relations Project Topic - Nike V/S Adidas

Index

Sr.no. Topic Page no.

1) Survey Questionnaire 32) NIKE: Introduction & Background 53) Products &Brand Portfolio 74) Executives 95) Public Relation Strategies 106) Public Relation Planning 117) Situational Analysis 138) ADIDAS: Introduction &

Background16

9) leadership 1710) Brand portfolio & Product 1811) Public relation strategies 2312) Public relation planning 2513) Situational analysis 2814) Administration value analysis 2915) Pr budgetting 3116) Comparison (nike v/s adidas) 3217) Conclusion 34

3Public Relations Project Topic - Nike V/S Adidas

Survey QuestionnaireName:

Age Group:

1. 15-20 2. 20-25 3. 25-35 4. 35-50 5. <50

How many pairs of sports shoes do you buy in a year on an average?

A. 1 or none B. 2 C. 3 D. 4 E. > 4

Which brand of shoes do you prefer to buy?

A. NIKE B. ADIDDAS C. OTHER (Specify)

Out of the two brands which is your preferred brand for sporting products (other than shoes)?

A. Nike B. Adidas

What are the tag lines for Adidas and Nike respectively? (write both if you know both or write one)

Which brand products are you better informed about?

A. ADIDAS B. NIKE C. NONE

Which brand’s various brand ambassadors are you better aware of? (select the brand you know more brand ambassadors of)

A. Nike B. Adidas

4Public Relations Project Topic - Nike V/S Adidas

Are you aware of any social causes supported by Nike or Adidas? If yes then specify which brand and which cause?

Are you aware of any malpractice undertaken by Nike or Adidas? If yes then specify which brand and which malpractice?

If you have visited a retail outlet of Nike and Adidas then which brand’s staff was better informed about the products and provided you with a better insight of the products?

Which brand’s products are you more up-to date on?

A. Nike B. Adidas

Which brand’s website have you ever visited or visit more often?

A. Nike B. Adidas C. Never visited

According to your experience of whichever media you follow which brand has a greater and more prominent presence in that respective media?

A. Nike B. Adidas C. None

How much do you rate the After Sale Service of Nike and Adidas respectively on a scale of 1 to 10:

-----------------------------------------------------------THANK YOU-----------------------------------------------------------

5Public Relations Project Topic - Nike V/S Adidas

NikeNike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world's leading supplier of athletic shoes and apparel [4] and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Cast parts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian.

The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978. The company takes its name from Nike , the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.

Background Of NikeBack before the Swoosh logo and long before the days they were called Nike, there was Blue Ribbon Sports (BRS). It was the company Phil Knight, our founder, and legendary track coach Bill Bowerman created in 1964 to provide athletes with better shoes. Their first year sales totaled around $8,000. It wasn’t until 1971 that BRS introduced the concept of the Greek winged Goddess of victory—Nike— followed by the launch in 1972 of the company we know today as Nike. In December 1980 we went public. And the rest is history.

When Nike co-founder Bill Bowerman made this observation many years ago, he was defining how he viewed the endless possibilities for human potential in sports. He set the tone and direction for a young company created in 1972, called Nike, and today those same words inspire a new generation of Nike employees.

Our goal is to carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.

It started with a handshake between two visionary Oregonians - Bowerman and his University of Oregon runner Phil Knight. They and the people they hired evolved and grew the company that became Nike from a US-based footwear distributor to a global marketer of athletic footwear, apparel and equipment that is unrivaled in the world.

6Public Relations Project Topic - Nike V/S Adidas

Headquarters

Nike's world headquarters are surrounded by the city of Beaverton, but are within unincorporated Washington County.

Manufacturing

Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.Nike is hesitant to disclose information about the contract companies it works with.

EmployeesNike employs more than 33,000 people globally. Nike World Headquarters located in Beaverton, Oregon is home to more than 7,000 employees.

RevenueFor the fiscal year ending March 31, 2010, it was recorded a revenue of $4.7 billion that is up 7 percent versus prior year.

ProductsNike produces a wide range of sports equipment. Their first products were track running shoes.

They currently also make shoes, jerseys, shorts, baselayers etc. for a wide range of sports including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse, basketball and cricket. Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. The most recent additions to their line are the Nike 6.0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than their competitors'.[17] In 2008, Nike introduced the Air Jordan XX3, a high-performance basketball shoe designed with the environment in mind.

Nike sells an assortment of products, including shoes and apparel for sports activities like association football,[18] basketball, running, combat sports, tennis, American football, athletics, golf and cross training for men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, association football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and recreational uses. Nike is well known and popular in youth culture, chav culture and hip hop culture as they supply urban fashion clothing. Nike recently teamed up with Apple Inc. to produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano. While the product generates useful statistics, it has been

7Public Relations Project Topic - Nike V/S Adidas

criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small, concealable intelligence motes in a wireless sensor network.[19][20]

In 2004, they launched the SPARQ Training Program/Division.[citation needed]

Some of Nike's newest shoes contain Flywire and Lunarlite Foam. These are materials used to reduce the weight of many types of shoes.[21]

The 2010 Nike Pro Combat jersey collection will be worn by Miami, Alabama, Boise State, Florida, Ohio State, Oregon State, TCU, Virginia Tech, West Virginia and Pittsburgh. Teams will wear these jerseys in key match ups as well as any time the athletic department deems necessary.

Brand Portfolio

Along the way, Nike has established a strong Brand Portfolio with several wholly-owned subsidiaries including Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd.

NIKE, Inc.’s wholly-owned affiliates, reported as Other Businesses – Cole Haan, Converse, Inc., Hurley International, LLC, NIKE Golf, and Umbro, Ltd. – play a significant role in our future growth plans. At the end of fiscal 2009, NIKE, Inc.’s affiliate businesses contributed approximately $2.5 billion of the company’s $19.2 billion in revenue. As part of our growth strategy, we continue to invest in opportunities that will generate the highest possible long-term returns.

Cole Haan

Cole Haan, a wholly-owned subsidiary of NIKE, Inc., is one of America’s leading luxury brands, offering high-quality men’s and women’s footwear, accessories and outerwear. Each product blends craftsmanship, design and innovation to give it distinctive character and style. Cole Haan operates more than 180 retail locations throughout the United States, Canada, the Middle East and Asia. Cole Haan is headquartered in New York City and Yarmouth, Maine.

Converse Inc.

Converse, Inc., established in 1908 and based in North Andover, Massachusetts, has built a reputation as “America’s Original Sports Company”™ and has been associated with a rich heritage of legendary shoes such as the Chuck Taylor® All Star® shoe, the Jack Purcell® shoe and the One Star® shoe. Today, Converse offers a diverse portfolio including premium lifestyle men's and women's footwear and apparel. Converse product is sold globally by retailers in over 160 countries and through more than 50 company-owned retail locations. Converse realized $915 million in sales in fiscal 2009.

8Public Relations Project Topic - Nike V/S Adidas

Hurley International LLC

Headquartered in Costa Mesa, California, Hurley International LLC designs and distributes a line of action sports apparel for surfing, skateboarding and youth lifestyle apparel and footwear under the Hurley brand name. Hurley realized $203 million in sales in fiscal 2009.

NIKE Golf

Located at NIKE’s World Headquarters in Beaverton, Oregon, Nike Golf designs and markets golf equipment, apparel, balls, footwear, bags and accessories worldwide. Nike Golf is passionately dedicated to ushering in the future of this great sport by developing ground-breaking innovations that enable and inspire athletes to become better. Nike Golf realized $648 million in sales in fiscal 2009.

Umbro Ltd.

Founded in 1924 and headquartered in Manchester, England. Umbro, Ltd. designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer), under the Umbro trademarks. Umbro Ltd. has been associated with football since the 1930s and its relationship with leading national teams and professional clubs includes exclusive endorsements and distribution rights for playing kit, apparel and equipment, including playing and training kits for England’s National Team. Umbro realized $174 million in sales in fiscal 2009.

ExecutivesBehind a great company are strong leaders.

Below is Nike's global senior team leading our business and growth strategies.

ExecutivesBehind a great company are strong leaders.

At Nike, we excel as a team. The Nike environment is a collaborative, matrix organization, where team members often report into two areas, such as a geography and a global function. In the Nike brand, teams work across footwear, apparel and equipment product engines; our core consumer categories - action sports, basketball, football (soccer), men's training, running, sportswear, and women's training; and in our six geographies - North America, Western Europe, Eastern/Central Europe, Greater China, Japan, and Emerging Markets. Our NIKE, Inc. affiliate brands operate in a similarly collaborative way, as well as critical corporate functions.

9Public Relations Project Topic - Nike V/S Adidas

Philip H. Knight, Chairman of the Board of Directors

Philip H. KnightChairman of the Board of Directors

Mr. Knight, 71, a director since 1968, is Chairman of the Board of Directors of NIKE. Mr. Knight is a co-founder of the Company and, except for the period from June 1983 through September 1984, served as its President from 1968 to 1990, and from June 2000 to 2004. Prior to 1968, Mr. Knight was a certified public accountant with Price Waterhouse and Coopers & Lybrand and was an Assistant Professor of Business Administration at Portland State University.

Mark Parker, President & Chief Executive Officer, NIKE, Inc.

Mark G. ParkerPresident and Chief Executive Officer

Mr. Parker, 53, has been President and Chief Executive Officer and a director since January 2006. He has been employed by NIKE since 1979 with primary responsibilities in product research, design and development, marketing, and brand management. Mr. Parker was appointed divisional Vice President in charge of development in 1987, corporate Vice President in 1989, General Manager in 1993, Vice President of Global Footwear in 1998, and President of the NIKE Brand in 2001. In addition to helping lead the continued growth of the Nike brand, Parker is responsible for the growth of NIKE, Inc.'s global business portfolio, which includes Cole Haan, Converse Inc., Hurley International LLC, and Umbro Ltd.

Charlie Denson, President, NIKE Brand

Public relations strategyNike's public relations strategy is an important component of the company's success. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan: "Just do it".[41] Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams.

10Public Relations Project Topic - Nike V/S Adidas

Advertising

In 1982, Nike aired its first national television ads, created by newly formed ad agency Wieden+Kennedy, during the New York Marathon. This was the beginning of a successful partnership between Nike and W+K that remains intact today. The Cannes Advertising Festival has named Nike its Advertiser of the Year on two separate occasions, the first and only company to receive that honor twice (1994, 2003).[42]

Nike also has earned the Emmy Award for best commercial twice since the award was first created in the 1990s. The first was for "The Morning After," a satirical look at what a runner might face on the morning of January 1, 2000 if every dire prediction about Y2K came to fruition.[43] The second Emmy for advertising earned by Nike was for a 2002 spot called "Move," which featured a series of famous and everyday athletes in a stream of athletic pursuits.[44]

Sponsorship

Nike pays top athletes in many different sports to use their products and promote/advertise their technology and design.

Nike also sponsors various minor events including Hoop It Up (high school basketball) and The Golden West Invitational (high school track and field). Nike uses web sites as a promotional tool to cover these events. Nike also has several websites for individual sports, including nikebasketball.com, nikefootball.com, and nikerunning.com.

Source:

http://www.nikebiz.com/company_overview/

http://www.nike.com/nikeos/p/nike/language_select/

www.Nike Inc.com

Public Relation PlanningObjectives

Provide an environment which develops people to maximize their contribution to NIKE.Identify focused consumer segment opportunities.Provide quality and innovative services and products internally and externally.

11Public Relations Project Topic - Nike V/S Adidas

Establish and nurture relevant emotional ties with consumer segments.Maximize profits.(from Nike Consumer Affairs packet, 1996)

Source: http://www.trizera.com/jsp/nikehist.html

Target audience

Unlike its rival companies, Nike presents itself to many different audiences in different ways. It's a marketing strategy born from a sophisticated understanding of how people respond to images of lifestyle. Whereas most companies develop products for an existing market, Nike tries equally to create the image first and then respond to the market that emerges.

But devising a tactic to pursue niche markets is something not solved with a one-size-fits-all design approach. If your business is going after myriad audiences, it would be nearly impossible to satisfy the needs of all customers under one umbrella mega-site. The web is not a mass marketing engine. It's a place to begin one-to-one conversations with your customers. Male street basketball players are not likely to identify with the same site content as female tennis players. Each Nike product has a particular group of potential athletes in mind. Each Nike site goes after those target groups, first beginning with the country, then the sport, i.e. NikeGolf.com, then with marketing content and products. Using similar structure, color, grid and logo treatment, Nike has created a cohesive identity across the network, but with relevant individuality to the target audience.

Source: http://www.hypergene.net/ideas/nike.html

Strategies

Make Your Brand an EventConsider the challenge of getting media attention at the Olympics or the World Cup. Creating destinations like Nike Park offer media, athletes and customers the chance to experience the brand and test out Nike products while generating word of mouth and media coverage.

Turn Your Brand into ArtNike has also evolved into what it calls sports culture events like White Dunk. White Dunk brought together 25 artists to create art inspired by the Nike Dunk shoe. The end result is an art exhibit which was initially housed in a building transformed to resemble a giant, white shoebox. Online demand for the shoe surged as a result and pieces of the exhibit are now on loan to various art shows.

Athletes Serve Up the Nike ExperienceThe Flickr set above is from the Nike Plus News Conference in Taiwan. Marathoner Paula Radcliffe was a focus of this event where the audience was immersed in a themed environment created to show the impact the product could have on someone’s running routine.

12Public Relations Project Topic - Nike V/S Adidas

Big Brands, Budgets and BuzzEven an iconic brand like Nike needs to go big to stand out. Nike cannot afford to rely on a product media kit – not matter how clever – to get the coverage it needs. While I was pleased to learn that Nike does not use ad equivalency to justify its investment, I was surprised that there are few metrics in place to track ROI. Parker notes the president of Nike Brand understands the importance of these events and elements of these environments often trickle down to influence the retail launch.

Here is the takeaway that inspired me to write this post. When creating a giant media event, Nike is very careful to edit the message and to not say everything.

“Focus on saying less, but say it really well to generate more excitement than you might otherwise around a product.”

Think about that concept as you stuff your next press kit to its breaking point.

Source: http://prblog.typepad.com/strategic_public_relation/2007/09/nikes-impactful.html

Activities

For the World Cup 2010, Nike wanted to enhance its already fantastic reputation as an iconic football brand, and its fashion credentials. By creating an installation in the Ultra Lounge of Selfridges, they needed Slice to meet this ambition.

In an attempt to better its public relations, Nike organizes its annul Nike Women’s Marathon for past 7 years. Although the name says “Nike Women’s Marathon”, the run is open to both men and women.

The Nike Rockstar Workout dance event gives dancers in London the chance to strut their stuff, gain expert advice and possibly win a trip to Los Angeles for an exclusive audition.

NIKE Elite Youth Basketball: its mission is to improve the game of basketball from the ground up, offer young players a place to receive superior skill instruction, honest evaluation and life-changing experiences.

Source:

slice.co.uk/events/nike-stadium-selfridges

http://hubpages.com/hub/nike-womens-marathon

http://www.viewlondon.co.uk/whatson/nike-rockstar-workout-dance-event-feature-665.html

http://inside.nikebasketball.com/news/eliteyouth

13Public Relations Project Topic - Nike V/S Adidas

Situational Analysis of NikeEldrick Tiger Woods was born December 30, 1975 in Cypress California. He burst onto the golf scene long before 1997 when he joined the PGA Tour. Tiger woods played in Professional tournaments ever since he was sixteen. During his amateur career he set records. Ever since then Woods his achievements to date rank him among the most successful golfers of all time. Currently he holds the Worlds No. 1 spot , he was the highest-paid professional athlete in 2007, having earned an estimated $122 million from winnings and endorsements. Tiger Woods is truly the worlds most famous golfer if not athlete and is a huge marketing instrument for business. According to Golf Digest, Tiger Woods has made $769,440,709 from 1996 to 2007 since he officially joined the PGA Tour. The golf magazine predicts that by 2010, Woods will become the world's first athlete to pass one billion dollars in earnings(Davis). Woods is truly a marketing instrument for companies such as Nike and Buick who have endorsed him ever since he burst on the scene. According to Golf Today tiger first contract was with Nike and was reported to be around $100 million dollar deal for five years. Recently Nike Signed Woods to a ten year 200 million dollar deal. Although he has won numerous tournaments and awards the bulk of the money he has earned has been from endorsements . Nike obviously the main culprit of the endorsements. Nike has done such a great job marketing Woods that, when most people see the Nike sign they instantly link it to Tiger Woods and vice versa. Tiger Woods himself has been an instrument that Nike has used to sell their Products. Whether it has been clothing ,golf’s balls or other golf accessories. Nike has grossed a large amount of money from using Tiger Woods. The Nike sumo, was one of the most popular drivers ever. Tiger woods had something to do with that, there were numerous commercials with him and the Sumo driver. Another Product pushed by Nike is the Nike One Platinum. Early in his career Woods was criticized for using a Titlist golf ball, with a Nike sign on it. Soon after that Nike creating a ball exclusively for Woods, which was later put on the market. In recent years Nike developed a set of golf clubs called the “Tiger Woods” irons. Obviously because of the name they have been falling of the selves in stores. Nike Designer looks like a genius after developing some of these products but in all reality its because of the number one player in the world Tiger Woods that the products are selling. Ever since Tiger was introduced to the world of Golf, Nike has marketed him and promoted him with commercials which has also enticed the target market to buy Nike products. Even as one visit’s the Nike website, it could easily be mistaken as Tiger Woods website by the way they advertise the latest equipment. In every commercial Woods has done, he has worn the a the Famous black Nike hat as well as the His red Nike shirt. Nike has by far gained the most recognition for Promoting Woods. No company has capitalized on the appeal of Woods ahs a young African American golfer. Nike has even benefited from other companies commercials and products being promoted because customers instantly link woods with them. Nike has Woods adorned in its gear even when he's pitching products from other sponsors including

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American Express, Accenture, General Motors' Buick, and Electronic Arts. With each ad Woods is always wearing that the Nike Swoosh in full view, so that there is no mistake in identity. "I suspect that the nature of the relationship is such that he's obligated to wear Nike in any public appearance," says Gary Singer, chief strategy officer at Interbrand, a branding consultancy. "Tiger is so closely associated with Nike that whether you see other brands or not, you think of Nike."(DiCarlo, Lisa) Commercials have been the primary promotion instrument that Nike has used. Nike Products are sold everywhere. Every Sporting good store most likely carries Nike products. Although most of their products are on the pricey side, a sporting store should and probably carries Nike products. All golf stores sell Nike products such as Nevada Bobs, and Roger Dunn to name a few. The biggest store available to everyone is on the internet. Nike stores on the internet generated millions if not billions of dollars. The internet makes it easy for the customer to easily buy products made by Nike. Access to their products is always available. Not only is it available but it is also available all over the world anywhere and anytime. Nike Products promoted by tiger Woods are really expensive. The Sumo driver Disgusted earlier runs roughly around four hundred and Sixty dollars. A Set of clubs run between nine hundred dollars and thirteen hundred dollars. These Products that Nike Make and tiger Promotes are targeted at the middle class and upper class of individuals, Nike has tried to include all classes of people, not by lowering their prices but by including Diversity into the game of golf. For centuries has been mainly a rich white mans game and had lacked diversity in the races. When Tiger Woods came on to the scene, Nike used him as a race barrier breaker. Now when you go to golf courses you can find individuals of all races, colors and cultures. Price although it is an issue when it comes to Nike equipment, what Tiger has done he has made is respectable gentlemen’s game. Tiger is not restricted to the golf Market. Woods has many strengths on and off the course. On the course his mental game is much more superior to any other golfer on this planet. Woods biggest strength is probably his mind. His mind set as a player, and a businessman is stronger than anyone else. His race and ethnicity is also probably a strength, it gives and allows him to have a wider market. It seems like the ethical issue that seemed like a weakness has turned into a strength for Woods. Another strength Woods and Nike have is an abundance of money to do what they need to do the seem to constantly advertise to the a younger demographic, which in the end will produce more loyal customers. have the most commercials out on the golf market, every other commercials is a Tiger woods Nike commercial. Weaknesses are far and between for Nike and Woods, if there are any it would be ability and lack of creativeness with their designers. Before Tiger Woods, Nike Golf was nonexistent. Nike was basically a basketball company with their then instrument Michael Jordan. Nike was not even on the map in the golf world and was considered to be an inferior product. Nike has basically copied the designs of other companies such as Titlist and Cleveland in their advancements in golf technology. If it was not for Tiger Woods ,Nike products would still be still be on sale at Wal-Mart. The opportunities for Nike and Woods are endless. They have the opportunity to widen and broaden their borders to the whole world. Nike's 20,700 employees generated almost $8.8 billion in revenue worldwide. Woods had a huge part of those staggering numbers.

15Public Relations Project Topic - Nike V/S Adidas

The threats to Nike and Woods probably come Externally. As Woods ages and time Progresses Nike will loose some of its pull on its faithful Tiger Woods customers. In economy, the biggest threat for Nike is if the economy goes into recession. If recession occurs, Nike's growth in sales, marketing and promotions will be affected. Other than that threats from other companies are there. These threats include the lack and ability to produce and innovative products that their customers can buy. Nike products are too expensive for the common customer. Therefore those regular Joes are at a disadvantage and they go buy the less expensive brand. Nike and Woods have built an almost unstoppable partnership. The amount of money they are generating yearly and since woods started playing golf is unimaginable. I believe this will continue for the next ten years or so. Nike has shown passion for their company, products, and athletes. They seem to be determined to provide consumers with comfort and assurance. Nike uses 1.7 billion dollars a year on advertising each year. They also find ways to be innovative and creative when it comes to advertising. Nike has seems to have a mission statement and goal at hand.. They want to be the best. “They adhere to their five brand principles namely: inspire, innovate, focus, connect, and care.”(Cuzoin)

Objectives: to promote nike products using a celebrity figure.

Results: higher returns in sales of product.

Source: http://hubpages.com/hub/Tiger-woods-swot-analysis

AdidasAdidas is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, golf company (including Ashworth), and Rockport. Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods. The company is the

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largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after its American rival Nike.

Adidas was founded in 1948 by Adolf "Adi" Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother, Rudolf. Rudolf later established Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.

The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The "Three Stripes" were bought from the Finnish sport company Karhu Sports in the 1951. The company revenue for 2009 was listed at €10.38 billion and the 2008 figure at €10.80 billion.

Background of adidasIn 1925, in a small German village, the world got it's first taste of Adidas. It was there, in a village by the name of Herzogenaurach, located 12 miles to the north and the west of Nuremberg, that those simple three stripes were brought to life by adidas' founder, Adolf "Adi" Dassler. Adi created adidas after realizing the need for performance athletic shoes. Adidas began small, producing soccer and running shoes, which ironically enough are still the main products that adidas is known for. Adidas has continued to gain momentum through the years. Many attribute this to adidas' quality, styling and reputation. Adidas is currently the largest supplier of athletic shoes in Europe. Adidas ranks second worldwide, with their products selling in almost 200 countries. In 1994 alone, adidas sales totaled 3 billion dollars. In late 1995, adidas went public with its stock. It was a tremendous success and continues to trade internationally. Adidas posted an amazing 40% increase in net sales in the first half of 1997. The Dassler family has a rich heritage in shoes. Adi's brother, Rudolf went on to create the puma brand in 1948 after a dispute with Adi. And, another Adi Dassler, who just happens to be the grandson of the founder of adidas, has launched his own shoe company, A. D. One. which specializes in adventure and sub-urban footware.

Adidas, one of the leading sports brands in the world, turned 60 on 18th august 2009.

It still seems an unlikely story: a modest shoemaker from a small rural town in Germany develops a range of sports products so original and so perfect that they are sought by athletes from all over the world.

As he indulged his passion for sport and for innovation, he created a brand as great as any in the world. An unlikely story, but not an impossible one.Becasue for him Impossible was nothing.

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For Adidas, it all started with shoes. Shoes to play in. Shoes to play better in. Shoes to win in. Shoes that, one day, would tread wembley and Wimbledon, win medals at the Olympic Games and the FIFA World Cup.

Athletes would wear them, record-breakers, and champions. Today, Adidas is one of the world’s leading brands, recognized and respected.

Passion, authenticity, innovation, inspiration, honesty and commitment – that is what Adidas means. Above all, it is the stories that made Adi Dassler’s idea and principle “no athlete left behind” come to life on the biggest sports stages around the world.

Leadership The Executive Board is composed of four members who reflect the diversity and internationality of the Group. Each member is responsible for a major business area within the Group.

Herbert Hainer – CEO

Mr. Herbert Hainer was Born in 1954 in Dingolfing (Bavaria),and holds a Degree in Business Studies.

Prior to Adidas he was working with Procter and Gamble as a Division Manager Sales and Marketing. He Joined Adidas in 1987 and held the responsibility as the sales Director Hardware (Bags, Rackets, Balls) and later the portfolio was altered to  (Footwear, Textiles, Hardware).

Further he served as the National sales director between 1991 till 1993; during 1996-1997 he became the Senior Vice President Region Europe, Africa, Middle East.

From Jan 2001 till March 2001 he was the deputy Chairman of the Executive Board, He became the CEO of Addidas AG* In march 2001.He has been a member of the executive since march 1997 and was raised to the Position of Deputy chairman Of the board.

Glenn BennettExecutive Board Member of Addidas AG (Responsible for Global Operations)

Robin J. StalkerExecutive Board Member of Addidas AG (Responsible for finance)

Erich StammingerMember of the Executive Board of Addidas AG

Brand portfolio

18Public Relations Project Topic - Nike V/S Adidas

Sharing the grand vision of the group, Adidas strives to be the global leader in the sporting goods industry living with a passion to build a sporting lifestyle.

The brand is very consumer focused and therefore they continuously improve the quality, look, feel and image of their products and organizational structures to match and exceed consumer expectations by providing them the highest value.

With immense innovations and leadership in design the brand always seeks to help athletes of all skill levels achieve peak performance with every product they bring to the market.

As a global brand Adidas is socially and environmentally responsible, creative and financially rewarding for their employees and shareholders.

Holding strong commitments the brand continuously tries to strengthen its competitive position and products in the market.

Dedicated to consistently deliver outstanding financial results, the brand has always retained the expectations of its fans world over.

Working with an Endeavour to devote itself fully to the sport culture and giving it a global flavor of fashion and style, the brand works out 3 major lines which are Adidas Performance, Adidas Original and Adidas style.

Adidas Sport Performance The guiding principle of the adidas Sport Performance Division is to equip all athletes to achieve their “impossible”. adidas Sport Performance brings its passion for great products to athletesin all sports and mainly focuses on four key categories globally:football, running, training and basketball.

Adidas OriginalPersonal collections,innovative style,groundbreaking fashion.Orginals by original is the sum of all three,pure celebration of originality in footwear and apparel.

From born originals like Mark Gonzales and Nike Nastase, to the music and style of Missy Elliot and Run DMC, to true champions like David Beckham and Stan smith the three stripes has been there since the very beginning.

Adidas StyleThe Sport Style Division is the home of Originals, defined as authentic sportswear, the Fashion Group, which is the future of sportswear, and Style Essentials, the fresh sport-inspired label made accessible for style-adopting youth. Together they offer consumers products from street fashion to high fashion, all uniquely inspired and linked to sport.

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ProductsRunning

Adidas currently manufactures several running shoes, including the adiStar Control 5, the adiStar Ride (the replacement for the adiStar Cushion 6), the Supernova Sequence (the replacement for the Supernova Control 10), and the Supernova Cushion 7 (which will soon be replaced by the Supernova Glide), among others. In addition, their performance apparel is widely used by runners. Adidas also uses kangaroo leather to make their more expensive shoes.

Football (soccer)

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.

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 notable examples including development of the Copa Mundial moulded 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 most famous football teams currently sponsored by Adidas.

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.[citation needed]The Predator also features the Craig Johnston-invented Traxion sole.

FIFA, the world governing body of football, commissioned specially designed footballs for use in its own World Cup tournaments to favour more attacking play. The balls supplied for the 2006 World Cup, the Teamgeist, were particular noteworthy for their ability to travel further than previous types when struck, leading to longer range goal strikes that were intended to increase the number of goals scored. Goalkeepers were believed to be less comfortable with the design, claiming it would move significantly and unpredictably in flight.

Adidas also introduced another new ball for the 2010 World Cup. The Jabulani ball was designed and developed by Loughborugh University in conjunction with Chelsea FC. It received much criticism from players, managers and pundits for being too hard to control. The lighter and more aerodynamic ball led to many shots and passes being over hit. The Jabulani was

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widely blamed for the low numbers of long range goals or even remotely accurate attempts in the opening stage of the tournament.

As well as the aforementioned Predator boot, adidas also manufacture the F50 and adiPure range of football boots.

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 Response for the "club player", Adidas targets the "tournament player" with the 12.2 oz Barricade tour model.[18] Adidas sponsors the following professional players with mainly clothing apparel and footwear: Ana Ivanović, Andy Murray, Maria Kirilenko, Caroline Wozniacki, Justine Henin, Jo-Wilfried Tsonga, Dinara Safina, Daniela Hantuchová, Alicia Molik, Fernando Verdasco, Gilles Simon, Fernando González, Flavia Pennetta, Laura Robson, Melanie Oudin, and Sorana Cîrstea. Adidas tennis apparel contains the ClimaCool technology found in other athletic jerseys and shoes.[19]

In November 2009 World Number 4 Andy Murray was confirmed as Adidas's highest paid star with a 5 year contract reported to be worth $24.5m.[20]

Players sponsored by Adidas can take advantage of the Adidas Player Improvement Program, where the company provides coaches, fitness trainers and sports psychologists to players in order to further their careers. The program includes legendary coaches such as Darren Cahill and Sven Groeneveld.

In Cincinnati, at the ATP Tennis Tournament in Mason, they have also sponsored the ball-boy and ball-girl uniforms.

Golf

adidasGolf is part of adidas, a German-based sports apparel manufacturer and part of the adidas Group, which consists of Reebok sportswear company, TaylorMade-adidas golf company, and Rockport. The adidas Group is one of the global leaders in the sporting goods industry offering a wide range of products around the three core segments of adidas, Reebok, and TaylorMade-adidas Golf. adidasGolf sells and manufactures adidas-brand golf apparel, footwear and accessories.

Cricket

In the 1990s, Adidas signed the famous Indian batsman Sachin Tendulkar and made shoes for him.[21] Tendulkar continues to wear Adidas shoes while playing matches. Adidas even made action figures after Sachin Tendulkar.

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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.[22] The following year they signed up fellow England player Ian Bell, Pakistan player Salman Butt and Indian Player Ravindra Jadeja. Having made cricket footwear 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.

Adidas also manufactures the uniforms worn by both the England cricket team and the Australian cricket team and they sponsored also the South Korea national 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.

Adidas is also the current outfitter of all 30 franchises in the National Basketball Association (replacing the Reebok brand after the merger) and sponsors numerous players past and present like Kareem Abdul-Jabbar and Tracy McGrady, as well as Dwight Howard, Chauncey Billups, Derrick Rose, Eric Gordon, Michael Beasley, Josh Smith and Tim Duncan. Adidas used to endorse Kobe Bryant with the Adidas Equipment KB8 as his first signature shoe, and stopped endorsing him in 2003. The company also endorsed Kevin Garnett, until he opted out of his contract in 2010; he is currently endorsing Anta. Lebron James also wore Adidas at high school. Now he endorses Nike to date. Gilbert Arenas was an Adidas endorser until the now-infamous gun incident last season; he currently endorses Under Armour.

Lacrosse

In 2007, Adidas announced the future production of lacrosse equipment, and will sponsor the Adidas National Lacrosse Classic in July 2008 for the top 600 high school underclassmen lacrosse players in the United States.[23]

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Rugby

Adidas make rugby balls and other rugby gear. They are the current kit and ball supplier to the New Zealand All Blacks, Irish Munster Rugby, the Argentinian Pumas, and the South African Stormers and Western Province rugby union teams among others. Adidas are also the official match ball supplier to the Heineken Cup.

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 adidas mens 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.[24]

Skateboarding

Adidas SB (Skateboarding) are shoes made specifically for skateboarding. Many of the shoes Adidas previously made were redesigned for 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, Lem Villemin,Vince Del Valle and Jake Brown.

Accessories

Adidas also designs and makes sandals, watches, eyewear, bags, baseball caps, and socks.

As well, Adidas has a branded range of male and female deodorants, perfumes, aftershave and lotions.

Source:

http://fashiongear.fibre2fashion.com/brand-story/adidas/

http://www.adidas-group.com/

http://www.bloomberg.com

Public Relation And Marketing Strategies Adidas, like other sports brands, is believed to engender high consumer brand loyalty. Brand loyalty towards Adidas, Nike, Inc., Puma AG and several other sportswear brands was examined

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in a recent study.[25] The study found consumers did not exhibit unduly high loyalty towards such brands.

During the mid to late 1990s, Adidas divided the brand into three main groups with each a separate focus: Adidas Performance was designed to maintain their devotion to the athlete; Adidas Originals was designed to focus on fashion and life-style; and Style Essentials, with the main group within this one being Y-3.

"Impossible is Nothing" is the current mainstream marketing slogan for Adidas. This campaign was developed by 180/TBWA based in Amsterdam but also with significant work being done by TBWA/Chiat/Day in San Francisco – particularly for its basketball campaign "Believe In Five".TBWA\Chiat\Day commissioned Zane Peach to produce images for 2007 international ad campaign.

Game advertisement

The brand is featured in several games. Amiga|Commodore Amiga: Daley Thompson's Olympic Challenge Sony Playstation: Adidas power soccer Commodore 64, ZX spectrum, Amstrad CPC: Adidas Championship Football

Sponsorship

Adidas is a major domestic (within Germany) and international sports and events sponsor. During the last number of years, the Group has increased its marketing and sponsorship budget. Adidas is a key sponsor and supplier to the National Basketball Association (NBA). The company recently unveiled a new NBA game jersey to be worn by all NBA players in games beginning in the 2010–2011 season.

Adidas are the main sponsor and kit supplier of the highly successful New Zealand national rugby team, the All Blacks. Adidas also are the kit supplier to the Los Pumas, the the Eagles, the Irish professional rugby union team, Munster Rugby and the French professional rugby union club, Stade Français.

Adidas also sponsors and produces apparel for the rugby league club Gold Coast Titans in the Australian National Rugby League (NRL) competition.

In cricket, the company are the main and kit sponsors sponsors of the successful Australian Cricket Team and the England Cricket Team. They are also the main sponsors of the Indian cricketers Sachin Tendulkar and Virender Sehwag and English cricketers Kevin Pietersen and Ian Bell. They are sponsors of the Indian Premier League teams Delhi Daredevils and Mumbai Indians.

Adidas is the longstanding kit provider to the Germany national football team, a sponsorship that began in 1954 and is contracted to continue until at least 2018. Sponsoring also the Mexican, Argentine and Spanish National Football Teams and from 2010 will sponsor the Scotland national football team.

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Adidas are very active at sponsoring top football clubs such as R.S.C. Anderlecht, Rapid Vienna, Real Madrid, Liverpool, AC Milan, Dynamo Kyiv, Metalist, Partizan Belgrade, Fluminense, Palmeiras, Bayern Munich, Chelsea, Stoke City F.C., Lyon, Marseille, AFC Ajax, Schalke 04, Galatasaray, Benfica, River Plate, Beşiktaş, Fenerbahçe, UANL Tigres, Panathinaikos, South Melbourne FC, IFK Göteborg, Al-Ahly, Al-Hilal, Ahli Jeddah, Caracas, Universidad de Chile, Los Millonarios, Selangor, Beitar Jerusalem F.C. Albirex Niigata and Atlético Nacional.

Adidas is the apparel partner of the Collingwood Football Club and the Essendon Football Club in the Australian Football League.

Adidas and Major League Soccer (MLS) announced a 8-year sponsorship agreement in August 2010 that will continue to make Adidas the official athletic sponsor and licensed product supplier for the league, and to work together to expand the developmental league for MLS through 2018. Adidas also sponsors events such as the London Marathon.

In the 1980s, Adidas sponsored rap group Run-D.M.C., a breakthrough idea.

For the 2008 Summer Olympics in Beijing, China, Adidas spent €70 million sponsoring the event, amid criticisms.

Adidas has also been marketing in NASCAR, sponsoring big name drivers such as Dale Earnhardt, Jr. and Tony Stewart.

Public Relation PlanningObjectives

Adidas-Salomon strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle.

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We are consumer focused. That means 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.

We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to the market.

We are a global organization that is socially and environmentally responsible, creative and financially rewarding for our employees and shareholders.

We are committed to continuously strengthening our brands and products to improve our competitive position and financial performance.

Source: http://www.samples-help.org.uk/mission-statements/adidas-mission-statement.htm

Target audience

The target market of Adidas is the urban youth with the brand proposition‘competition to lifestyle’. The principle consumption centers namely the metrosare also a potential target market.

Source: http://www.scribd.com/doc/8760709/Adidas

Strategies

Football: expanding market leadership

Being the most popular sport worldwide, football is clearly one of adidas’ key strategic priorities. For over 50 years, adidas has led all major developments in football boot and ball technologies. Building on its success around major sporting events such as the FIFA World Cup™ and the European Football Championship, the brand strives to increase its leadership position by continuously creating the industry’s top products and fully leveraging its outstanding portfolio of sports marketing partners.

Running: building credibility with high-performance athletes

Running continues to be one of adidas’ highest category priorities and is critical to the brand’s success moving forward. The brand’s philosophy is to inspire and enable runners on all levels, with the aim to be the most trusted and desired runners’ brand in the world. First and foremost, adidas focuses on building credibility with the high-performance athlete and high-frequency health and fitness runners. This credibility provides a strong foundation to leverage

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the broader opportunity in the Running category, the casual runner and the young everyday runner where adidas has significant market share opportunities.

Training: creating new consumer experiences

At adidas, Training is the biggest category for both men and women. Training supports the preparation needs of serious athletes across all sports disciplines and is the industry’s largest apparel category. Its positioning is driven by adidas’ desire to support athletes to be “fit to win”. To achieve this goal, Training develops proprietary technologies and commercialises innovations for sport-specific categories to meet the needs of the everyday athlete. For example, in 2009, Training continued to expand athlete usage of its industry-leading TECHFIT™ PowerWEB™ concept, expanding the offering into new sports categories (e.g. basketball), and widening its commercially expanding executions at lower price points.

Outdoor: the athletic brand in the outdoors

adidas has a long history in outdoor, going back as far as 1978, when adidas and Reinhold Messner developed a new generation of boots which he used to reach the basecamp on his way to become the first man to climb Mount Everest without the help of oxygen equipment. With this heritage and the growth in the outdoor sports sector, adidas has invested in building an authentic and performance-orientated outdoor market position, through such products collections as TERREX and SUPER TREKKING. Given the progress made and the attractive future growth potential, adidas now recognises outdoor as one of its key categories.

adidas Sport Style: divisional overview

The market for streetwear and lifestyle fashion represents a unique opportunity for sporting goods companies as it is more fragmented and larger in size than the market for products used in sports activity. In addition, profitability in the sports lifestyle market is typically higher as a result of lower product complexity. adidas was the first brand to credibly leverage its sports assets in the lifestyle arena and as a result is regarded as a legitimate sports lifestyle brand.

adidas Originals: from niche to fashion mainstream

The cornerstone of the Sport Style division is adidas Originals: the original lifestyle brand, born in sport heritage but living in contemporary lifestyles. adidas Originals with its Trefoil logo has become a relevant part of many people’s lives, whether they be skaters, rockers, artists, musicians, sneakerheads, sports fans, etc. With a holistic offering in products and communications, adidas Originals speaks to and engages the youth audience in authentic, creative and new ways with the “Celebrate Originality” philosophy.

The Fashion Group: adidas is fashion

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In 2002, adidas entered high-end fashion, collaborating for the first time with one of the most innovative and highly regarded global designers: Yohji Yamamoto. Creating the Y-3 brand, adidas combined the worlds of fashion and sports, making adidas a true pioneer in the field of sport-inspired, high-end, premium fashion.

Source: http://www.adidas-group.com/en/investorrelations/strategy/adidas/default.aspx

Activities

"My Adidas" A Run DMC collection No. 6 Newburgh Street W1F 7RQ London | December 2005 Run DMC and adidas are intrinsically linked in the imagination of the hip-hop community around the world. adidas represents the look and the life style of hip-hop and no other brand has been so closely associated with global hip-hop icons. Run DMC created an iconic street look and cultivated the ‘80s hip-hop signature style. No 6 in London was the location for a unique exhibition of rare Run DMC memorabilia and clothing from the glory days of hip-hop.

SPORT OF ART by Surface to Air London/ Berlin/ Tokyo/ Miami | October - December 2005 05 Presented with 180 pairs of adidas Samoa shoes, Surface to Air re-interpreted the idea of a ´classic´ and manipulated it into something newly ´original´-shredding the shoes only to transform their identity as an integral part of two other classics: the Barcelona chair by Mies van der Rohe and the Grand Confort by Le Corbusier.

Global adidas Predator PR launch

To launch the latest Predator boot to a global audience of press & media, FIVE33 conceived the design and build of a carefully crafted pair of super-sized Predator boots along with the largest shoebox in the world, standing 15 metres high and weighing 6 tonnes. The whole event was choreographed to an exclusively written and produced FIVE33 sonic soundtrack.

Source:

http://www.adidas.com/us/heritage/events.asp

http://www.five33.com/events-predator.html

Situational AnalysisAdidas' "March is a Brotherhood" Campaign

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Spring is getting near and you know what that means: love is in the air...for college basketball that is! As the college teams battle it out for spots in the Final Four, shoemakers are battling it out for shoe sales. Adidas has created a new basketball sneaker, Mad Clima, to be released in conjunction with March Madness.

In order to promote the new shoes, Adidas has launched an ad campaign called "March is a Brotherhood." One aspect of the campaign is a series ofweb videos featuring four of the NBA's top players including Tracy McGrady, Dwight Howard, Kevin Garnett, and Josh Smith. Each player chose a team to represent and is featured in their own short video clip about how their team will win. After watching the clips, I'm unsure about their potential effectiveness. So I wonder, will the video clips help make the campaign a success or will they get lost in the madness?The videos are very short little clips, about 20 seconds long, with the players basically just showing off jerseys of the college they are representing. Howard took the Kansas Jayhawks, Garnett represents for the UCLA Bruins, McGrady is for the Louisville Cardinals, and Smith backs the Pittsburgh Panthers. Essentially, the players talk smack about the choices the other players made and how their team will beat the others.

Unfortunately for Adidas, I think the route they chose to take with these videos was far too casual. Although I believe that informal messages work (think reality tv and blogs) because they are more personal and relatable, I think this tactic will be ineffective. It seems like they were going for was an unscripted "reality" type theme. It's not that the videos are bad, but they're not memorable, which is exactly what short videos are supposed to be. What the ads are really for is the Mad Clima sneakers, but you neither see nor hear anything about them until a picture is shown at the end. The only clip that shows the shoes is Kevin Garnett's and they're not even on his feet. If Adidas is paying the players to make these clips, they could have at least been wearing the shoes. Source:http://www.piercemattiepublicrelations.com/2009/03/sports_pr_adidas_march_is_a_br.html

Objective:

To promote the new line of shoes they will be launching .,using NBA stars who appeal to the public. By starring them in a video clip..

Result:they didn’t work out as good as they were supposed to as its just a 20 sec clip and the players aren’t even endorsing the product in some way..

Lop holes: none of the players are linked to any of these colleges so its is very absurd none of the players are holding the shoes in the video instead of wearing them

Administration Value Analysis

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Values Followed by Adidas StaffThe 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 consumer focused and strive to continuously improve the quality, look, feel and image of our products. Our organizational structures are built to match and exceed consumer expectations and to provide the highest value products in the industry.

We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market.

We are a global organization that is socially and environmentally responsible, creative and financially rewarding for our employees and shareholders.

We are committed to continuously strengthening our brands and products to improve our competitive position.

We are dedicated to consistently delivering outstanding financial results.

 

Benefits to employees (PR Team)Within the adidas Group, it's all about the people.

Only when an athlete has the best training and equipment can he or she compete at the highest level. Only when our people have the proper benefits and life resources can they achieve their best. Within the adidas Group, we provide our full-time employees with a generous, comprehensive and individualized benefits package.

Benefits vary by region, but here are some examples of what you may look forward to when joining the adidas Group.

Medical

Dental

Vision

Prescription drug benefits

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In addition, the adidas Group offers flexible savings accounts, company-paid life insurance, short term and long term disability, employee assistance programs, flexible time off and paid holidays.

We also offer "Fit for Today" and "Fit for Tomorrow" training courses to equip employees with the skills necessary to perform in our constantly changing and competitive landscape. Our "Fit for Tomorrow" courses prepare our employees for their next adventure here within the adidas Group – whether that's moving into a leadership position or taking on new global opportunities.

We also believe in doing things a little differently. In addition to the traditional benefits, the adidas Group offers a unique and diverse range of perks that makes working here not just another job. These may include:

Language courses

Personal trainers

Bicycle share programs

Full service kitchen with discounted rates for employees

Coffee Shops

Strong global career and travel opportunities

Opportunities to meet visiting athletes

Company wide sporting events

Competitions and celebrations

It's not uncommon during the day to find our employees engaging in their favorite sport at one of our athletic facilities.

You can rest assured that the adidas Group total compensation package is effective in attracting and retaining top candidates. Why? We compare our plans side by side with those offered by other companies and also listen to employees and new prospects for their reactions to our benefits package. We're always open to hearing ideas on how to make the adidas Group an even better place to work.

Benefits and perks may vary by location and division.

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PR Budgetting

Adidas: Marketing budget reallocation to digital channelsNovember 29, 2010 by Dr. Nikola Bachfischer

Adidas is about to restructure its marketing budget: “The biggest share of our communication is done via digital channels. By far, the traditional media do not play such an important role any more as they did in the past”, Chairman of the Board at Adidas Erich Stamminger told the German newspaper Handelsblatt. The second-largest sporting equipment manufacturer after Nike plans to reallocate the biggest chunk of its marketing budget to the (mobile) Internet. Marketing via traditional channels will only play a complimentary role then. This constitutes a radical shift in allocating the company’s marketing budget that amounted to 1.5 billion Euro in 2010 (approx. 13% of its annual turnover). Up to now, the marketing budget was allocated the other way around, with marketing spending via TV and print media occupying the main part and online marketing being just a supplementary addition.

The reason for this shift lies in the fact that the main target audience for Adidas is the group of 14-19 year-olds, who spend most of their time online. At the same time, traditional media like TV and print report a steady decline in usage. With its new fashion brand adidas Neon, the company seeks to compete with the leading fashion companies H&M and Zara. adidas Neon is one of the cornerstones of the company’s growth strategy. Yet, Adidas is not alone with shifting its focus to online and mobile channels: Nike pursues a similar strategy and Puma has also announced to double its digital marketing budget.

Take the corporate Facebook page as an example: Adidas already reaches a couple of million people there. The Adidas Originals Facebook page has 6.2 million fans, the Adidas football page, which counted some 100,000 fans at the beginning of the year, has gathered 3 million fans in the meantime, and the Adidas’ main page lists 1.5 million fans.

Source:http://www.aquarius.biz/en/2010/11/29/adidas-marketing-budget-reallocation-to-digital-channels/

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Comparison: Nike V/S Adidas

(on the basis on public relation strategies adopted through the vast

media of the internet)Adidas is lagging on overall in web site appearance in comparison to Nike's web site.

OVERALL COMPANY VALUE CONFIGURATION

The value curve illustrates an evaluation of Nike and Adidas's focusing on the company as a whole but with the focal point of e-commerce extension. Nike.com Adidas.com The inputs to the e-commerce value configuration for both Nike and Adidas are: Brand Image, Price, Web site design, Service, and Innovation. Analyzing the graph, Nike.com has a slight edge over its arch rivals Adidas.

Adidas with growing popularity has narrowed the gap from previous years. The brand image for both Nike and Adidas is immense; however Nike has attained a considerable competitive advantage due to its reputation for quality and innovation. In terms of e-commerce, both Adidas and Nike are analogous, however, Adidas' web site is a bit more user friendly and navigation is fairly easy. The functionalities are identical in both cases. Overall, Nike's continued efforts in innovation coupled with its brand image, is a unanimous leader of the athletic footwear and apparel industry. In terms of the e-commerce portion of the industry, Adidas with its web site design and functionality has narrowed the gap between the market leaders and the market follower Nike.com's value proposition is an easy to use web site that is highly interactive, secure as well as its reputation and brand image of their product. For Adidas.com, similar to Nike, the value proposition is an interactive web site that is secure and easy to use. For the soccer industry, Adidas.com positions itself as the leading brand in apparel and footwear. The value chain configuration for both Nike and Adidas is supply chain. The value configuration has multiple components.

To the right is a table which summarizes these components and the respective percentages for a $100 product (footwear). Because the operations of both companies are similar, the table below only lists Nike's value chain breakdown. Adidas' value chain although slightly different, is similar in nature in comparison to the industry. Essentially, the breakdown of the value chain indicates for both Adidas and Nike that the cost to produce and sell an item over the Internet costs these companies almost 50% of the price of the item. ItemPercentage Material Cost16%

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Labour Cost2.6% Administration and Overhead4.6% Profit Margin1.9% Net Factory Price25.1% Shipping, Customs and Finance3.9% Net Landed Price29% Warehousing and distribution0.8% Royalties0.4% Quality Costs0.3% Direct Ship Allowance0.2% Research and Development0.2% Other costs of sale0.1% Total Cost of Goods Sold31% Sales and discounts4.6% SG&A8.3% Corporate Overhead1.8% Interest Expense0.2% Income Taxes2.6% Total Nike Cost48.5% Financial Analysis of Nike and Adidas Below is the Nike and Adidas stock performance comparison in Euros. There is no question Nike is the market leader in not only the product aspect but also the financial aspect of this industry.

However, over the last few years, Adidas has been slowly eroding the market share from Nike. The financial comparisons of both companies indicate Nike having a substantial financial advantage over Adidas. The operating margin and return on assets is slightly lower for Adidas. This could be indicative of the market leader and market follower relationship. Adidas needs to improve in both operating margin and return on assets to gain ground on Nike. A study conducted at Cornell University, which illustrated the distribution of market shares in the U.S. and in foreign markets. This research was conducted in 1998, since this time, Adidas has comfortably moved to the second spot in this highly competitive industry. For Nike to successfully remain as the market leaders, it must continue to innovate and produce leading edge designs that attract the diverse markets. One important point to highlight is the market share Adidas has gained since 1998. Adidas evolved from a minor player in the industry to the second biggest company in the industry.

Footwear Market Share SWOT Analysis for Nike.com & Adidas.com Nike.comAdidas.com

Position Market Leader Market Follower

STRENGTHS Strong management team and good corporate strategy in both North American and overseas markets First movers advantage in e-commerce Brand recognition and reputation Trademark "Just Do It" Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.) Strong control over its own distribution channel Strong customer base Strong financial position with minimal long term debts Innovative designs in footwear enabling consumers to design their own shoes online Brand reputation and recognition Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.) Adidas even offers items not available in its retail stores Emerging brand name Pricing strategy is competitive to Nike's Merger with Salomon will allow Adidas to gain a strong foothold in the Skiing Industry Secondary web sites (i.e. soccerevolution.com to simply promote soccer, Adidas leads the market in this sport)

WEAKNESSES Negative image portrayed by poor working conditions in its overseas factories E-commerce is limited to USA The direct sale to consumers is creating conflicts with its own resellers Currently available supply chain, manufacturing, and fulfillment technologies aren't easily integrated with online build-to-order Not known for its research andsystems development leading to innovative designs The e-commerce is limited to USA, however, has

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planned to expand to Canada and international in the near future Online customer service not "helpful" or easy to find

OPPORTUNITIES Increasing demand in the industry for products available online Increase female participation in athletics E-commerce will reduce the cost of goods sold thus improving the "bottom line" New technology and innovation to stay on top of market needs Expand e-commerce to global markets Possibility of outsourcing the web development and e-commerce to a third party developer Growing interest in the sport of Basketball. Partnering up with other retailers to sell basketball footwear and apparel Growing reputation in non-basketball sports will boost e-business E-commerce will reduce the cost of goods sold thus improving the "bottom line" Expand e-commerce to global markets Collaborate with other online retailers to offer Adidas products

THREATS Negative image due to "sweatshops" Economic downturn in North America and Asian Countries Increase in the price of providing technological solutions (e-commerce) Strong competition from some of its major challengers in all branches of the business Continuing challenges in import/export duties.

Thus through this study of both the companies, it makes our comparison regarding the different pr strategies adopted by them respectively, more clearer and defined. Thereby this makes us understand the effectiveness of a particular kind of pr strategy which is followed by the competitors more clear.

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