PROJECT REPORT ON

RETAIL MANAGEMENT OF SPORTS WEAR BRANDS

GROUP NO-10

PRESENTED TO: PROF.SUBRAMANIUM

PRESENTED BY:= SACHIN KODAPE-23 VINOD KHURADE-26 SANDEEP LEKHAK -27

Retail Management : Meaning

RETAILING Business activities involve Selling Goods and Services to Consumers for their Personal, Family or Household use. Every sale of Goods and Services to final consumer Food products, apparel, movie tickets; services from hair cutting to e-ticketing. Retailing is the Last stage in Distribution Process- Wholesale is an intermediate where Goods and services are sold to Business customers.

Overview of Indian Retail Industry

The Total retail Market of India is 19.48 Lakh Crore Rs. of which .126 lakh crore Rs.is organised. The organised market is growing at a rate of 28% and is expected to touch .206 lakh crore in 2011-12. The organised retail market share to total GDP is 2.1% and to that of private consumption is 3.4%. Organised retail share to total retail market is 6.5%, which is estimated to touch 8.1% in 2011-12.

Out of 19.48 lakh cr. Rs. market share, food and groceries has 67.5% share. Apparel & Clothing, Catering and Food Services and Jewellery with shares of 7.3%, 4.7% and 4.1% market share. Apparel Category is growing by 21%. Sportswear retail market in India is approx 2500 cr. of which 45% is the sports apparel market and 55% is the sports footwear market.The anticipated growth rate is 13%.

ADIDAS : AN INTRODUCTION
Adidas AG is a German sports apparel manufacturer, part of the adidas Group. It registered as adidas AG on 18 August 1949 (with lower-case lettering: "adidas"). The company was named after its founder, Adolf (Adi) Dassler, who started producing shoes in the 1920s in Herzogenaurach, near Nuremberg, with the help of his brother Rudolf Dassler who later formed rival shoe company PUMA AG. The company's clothing and shoe designs typically include three parallel stripes of the same color, and the same motif is incorporated into adidas' official logos. Adidas plans to become the leader in the organised sports footwear and sportswear market.

Adidas in India
Adidas first entered India in 1989 through a licence agreement with Bata. Adidas later re-entered India for the second time in 1996 through a joint venture with Magnum International Trading Company Ltd with an initial investment of $2.5 million to form adidas (India) Trading Pvt. Ltd. adidas holds a 100 percent stake in the company. The company launches every six months between 600 and 800 new designs in footwear and between 1,500 and 2,000 new designs in apparels. The apparel range is priced between Rs279 and Rs2700, while the footwear is priced between Rs499 to over Rs12499. adidas' products in India are sold through 140 own outlets (excluding multi-brand outlets).The company, which is known for football and running shoes, introduced its cricket gear in India in 2004. The company adheres to strict quality and design specifications and uses the manufacturing unit of Lakhani Footwear to manufacture the locally produced adidas range in India.Around 30-40 percent of the components are locally sourced.

MARKETING MIX
. PRODUCT

We know that marketing is the fundamental to provide the actual benefit to the customers. Marketing is not only to provide the product but it is to the change or to communicate to the customers and convince about it. Adidas as a product people need comfort, durability and style.

outdoor,bodycare eyeware micoach watches better place.

PRICING

Adidas targets customers mostly from the Income group of rupees 15,000 and more.Thus the prices are bit on the higher side

PLACE-DISTRIBUTION

A crucial decision in any marketing mix is to correctly identify the distribution channels. The question how to reach the customer" must always be in ones mind

Adidas has entered into a distribution tie-up with Woodland Shoes.Also , it had tied up with national multi-brand retailers like Planet Sports, Lifestyle and Metro Shoes. It also distributes its products through its exclusive showrooms.

PROMOTION

The promotion strategies of ADIDAS mainly focus on:

Reducing number of lost customers, Improving communication with present customers, Promotion aiming at existing customers and understand reasons for losing customers , attracting other market segments , seeking other distribution channels and Advertising in other media.

To achieve the above goals ADIDAS gives seasonal offers , discounts and Adidas coupens to its customers.

Targeting & Positioning

Based on information gathered from retailers and adidas executives, it is evident that the major demographic segment targeted by adidas is the age group of 15-35 years. Very few footwear products are aimed at the female market.

adidas targets households with monthly incomes greater than Rs. 15,000. Households with incomes between 15,000 and 30,000 rupees per month dont buy a new pair as often as higher income brackets. This is primarily because they use shoes as shoes and not as style/image products. It is important that when this group enters the market with an intention to buy, they should buy from adidas. To ensure this, adidas should sell durable, comfortable shoes at a reasonable price to this group.

A crucial segment adidas has identified is the Call Centre Crowd. This segment is substantial in the metros and is expected to continue its rapid growth. It consists of image-conscious youth who

are earning but are not yet independents. This means that their entire income is disposable. adidas seeks the highest share of wallet from these consumers. Under psychographic segementation, adidas targets

Experiencers: young, enthusiastic, impulsive people who seek variety and excitement. Strivers: Trendy and fun-loving people who are resource-constrained but favour stylish products that emulate the purchase of those with greater material wealth.

Image Drivers: The wealthy few who set the trends in their social circle. This is the segment responsible for the selling out of the Rs.12499 adidas One - adidas most expensive shoe in India.

The company targets behavioural segments also: The sports and fitness conscious population is further subdivided into gym regulars, professional and amateur athletes and even drawing-room sports enthusiasts. adidas has specific products for each of these sub-categori

How global brand Adidas slipped in India

Binoy Prabhakar & Chaitali Chakravarty, ET Bureau May 13, 2012, 06.53AM IST

For a company that sells running shoes, German sporting goods and apparel powerhouse Adidas has long preferred to tiptoe in the Indian market. Many global retail giants believe that this is a market where pots of money can be made, but Adidas has largely been cool to India. As early as 2011, the group identified North America, Greater China, Russia/CIS, Latin America, Japan and the UK as key growth markets. India managed to find mention in the annual report, but as an emerging market. Adidas chief corporate communication officer Jan Runau said India is important. How much so? "In terms of turnover, it is neither among our Top Ten markets globally nor in the Top Three in Asia."

But for a market on the backburner, Adidas devoted considerable time and emphasis on India while announcing its first-quarter results earlier this month. Only, it wasn't for reasons it would have preferred or imagined.

Adidas global boss Herbert Hainer said "commercial irregularities" at its Reebok unit in India had wiped out e125 million (about Rs 870 crore) from its global profits. The problems, limited to India, could lead to further charges of around e70 million (Rs 488.39 crore), he said. These are indeed big numbers, but it is not for nothing that Adidas is the world's second biggest sporting goods company. The first-quarter earnings beat expectations on sales of e3.8 billion and operating profit of e409 million. Annual sales from soccer alone are expected to top e1.5 billion this year. Cast against these numbers, e195 million is not quite as damaging as it seems. In a Shambles What could be worrying Adidas is the nature of the losses. Reebok has been a constant underachiever in many global markets since Adidas bought its smaller US rival for $3.8 billion in August 2005. A notable exception was India. It was a market where Reebok enjoyed a headstart over rivals and even Adidas itself.

A month before it lifted the lid on the irregularities, Adidas sacked Subhinder Singh Prem, its India head until then. Prem is credited with Reebok's breakneck expansion in India. The company hasn't shed a light on the irregularities or if Prem had a hand. Runau and Prem did not reply to questions from ET on Sunday on the controversy.

Prem has denied wrongdoing. He responded to the "defamation and termination of services" by launching legal action against the company. For its part, Adidas has replaced the management at Reebok India - COO Vishnu Bhagat also got the boot, and said it would cut the number of Reebok stores in India by about one-third (nearly 900). "The situation in India, although unfortunate, will allow us to now accelerate plans to improve a specific underperforming part of our business," Hainer said in a statement. From star performer to an underperforming business, Reebok India's fall from grace has been as astonishing as it has been rapid. How did that happen? How did Adidas stumble on the Reebok India irregularities? What really are these irregularities? The company is not telling. But the Reebok story in India is replete with instances of strategic blunders, corporate mismanagement and financial mischief, according to three people with knowledge of the matter. One of the persons, a high-ranking Adidas official, left the company only late last year after a nearly five-year stint. All three spoke on the condition of anonymity, citing the sensitivity of the matter. Rather than an underperforming asset, Reebok India's problems are much bigger, they said. More on that later.

Race to the Top

Prem's appointment raised few eyebrows because Reebok appeared to be the bigger division then. He was also an old hand, having joined the company in 1995. What received less attention was how Prem landed the job. The integration of the two Indian offshoots was only a formality. But the candidate for the head of the combined entity was undecided. Around 2008, Prem began gunning for the job, according to the former Adidas official. "His single-minded agenda was to become India MD, no matter what," the person said. Though Prem had the credentials, he knew he faced tough competition from Gellner, according to this person. "Adidas India began slowly, but was fast catching up with its Indian counterpart."

SWOT Analysis:

STRENGTHS Largest International portfolio of sport ambassadors. Sponsors football teams with maximum fan following in India and USA. Highest brand image in India

WEAKNESSES Rigid pricing structure. Behind Nike in market share in India. Has not do well in Indian subcontinent market.

OPPORTUNITIES Has a great opportunity to expand international market.

Increasing demand on the sportswear. Positive and increasing market trends can increase through the effective advertising.

THREATS Adidas larger competitor Nike has a greater market share and having a big budget in marketing activity. The newly born several brands like CAT, GAP has increase their advertising budget in recent years. Amount of competitors increasing day by day.

CONCLUSION
Adidas have used the theoretical systems to create their brand building programs. Adidas launched sub brand of the equipment product line for the elite of sports men. Adidas continues to prove itself as a brand built to last through a game plan of reinvention. And it is constantly improving the sales and the brand image. Marketing mix plays an important role in increasing the sales and making a brand name in the market. The right product on a correct price at a right place and with proper and constant promotion plays a vital role in marketing. Adidas used the tool of Marketing mix rightly to enhance the image and to conquer the market.