A Project Report on

COMPARATIVE STUDY OF ADIDAS AND NIKE

Submitted to the
APEEJAY INSTITUTE OF TECHNOLOY!SCHOOL OF
"ANAE"ENT
in P#rti#$ Fu$%i$$ment %or the #&#rd o%
POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM)
'(
RAHUL DUBEY
P)" *
ST
YEAR
SECTION +',
Under the uid#nce o%
)r- A"IT .U"AR UPA)HYAY
Declaration
RAHUL DUBEY
Students of MBA I Trimester 2013-15, at APEEJAY
INSTITUTE OF TECHNOLOGY-SCHOOL OF
MANAGEMENT hereby declare that this ro!ect "e#ort
under the title $com#arati%e study on Adidas and &i'e(
is the record of my )or' under the *uidance of
DR A! UPADHYAY
This re#ort has ne%er been submitted to any)here else
for a)ard of any de*ree+

Si"nat#re o$ %entor Si"nat#re o$
&t#'ent

Certi(cate
Thi/ i/ to certi%( th#t R#hu$ )ube(0 # /tudent o% P)" *
/t
(e#r b#tch o%
Apeej#( In/titute o% Techno$o1( 0 Schoo$ o% "#n#1ement 0re#ter Noid# h#/
done the project &or2 on
3CO"PARATI4E STU)Y ON A)I)AS AN) NI.E 5 under m( /uper6i/ion
#nd 1uid#nce - I under/t#nd thi/ project report i/ bein1 /ubmitted to Apeej#(
In/titute o% techno$o1(!Schoo$ o% "#n#1ement re#ter Noid# %or #&#rd o%
de1ree o% PGDM-To the be/t o% m( 2no&$ed1e0 thi/ report h#/ not been
/ubmitted to #n( other Uni6er/it( %or #&#rd o% #n( other de1ree-
)urin1 thi/ period0 I h#6e %ound the per%orm#nce o% hi/ &or2 /#ti/%#ctor(-
)r- A-. UPA)HYAY
+uide,
Pro%- )-N- 'AJPAI
+)irector,
AC!NO)LEDGEMENT
I &ou$d $i2e to e7pre// m( 1re#te/t 1r#titude to the peop$e &ho h#6e
he$ped 8 /upported me throu1hout m( project- I #m 1r#te%u$ to m( te#cher
DR. A.K UPADHYAY 8 Other F#cu$t( %or their continuou/ /upport %or
the project0 %rom initi#$ #d6ice 8 cont#ct/ in the e#r$( /t#1e/ o% conceptu#$
inception 8 throu1h on1oin1 #d6ice 8 encour#1ement to thi/ d#(-
A /peci#$ th#n2 o% mine 1oe/ to m( co$$e#1ue &ho he$ped me in
comp$etin1 the project 8 The( e7ch#n1ed their intere/tin1 ide#/0 thou1ht/ 8
m#de thi/ project e#/( #nd #ccur#te-
I &i/h to th#n2 m( p#rent/ %or their undi6ided /upport #nd intere/t &ho
in/pired me #nd encour#1ed me to 1o m( o&n &#(0 &ithout &hom I &ou$d be
un#b$e to comp$ete m( project- At $#/t but not the $e#/t I &#nt to th#n2 m(
%riend/ &ho #ppreci#ted me %or m( &or2 #nd moti6#ted me #nd %in#$$( to od
&ho m#de #$$ the thin1/ po//ib$e---
RAHUL DUBEY
PGDM *+
&t
YEAR,
Content
INTRODUCTION
COMPANY PROFILE
HISTORY OF THE COMPANY
MANUFACTURING PRACTICES OF THE COMPANY
MARKET SHARE
RESEARCH OBJECTIVE AND METHODOLOGY
THE MARKETING MIX STRATEGIES
SWOT ANALYSIS
RECOMMENDATIONS
LIMITATIONS
CONCLUSION AND IMPLICATIONS
RIVALS COMPARISON
INTRODUCTION
INDUSTRY O-ER-IE)
Indian leather industry is the core stren*th of the Indian foot)ear industry+
It is the en*ine of *ro)th for the entire Indian leather industry and India is
the second lar*est *lobal #roducer of foot)ear after ,hina+ "e#uted *lobal
brands li'e -lorsheim, &unn Bush, Stacy Adams, .abor, ,lar's, &i'e,
Adidas, "eebo', /cco, 0eichmann, /lefanten, St Michaels, 1asley,
Salamander and ,olehaan are manufactured under license in India+
Besides, many *lobal retail chains see'in* 2uality #roducts at com#etiti%e
#rices are acti%ely sourcin* foot)ear from India+ The foot)ear sector has
matured from the le%el of manual foot)ear manufacturin* methods to
automated foot)ear manufacturin* system+
0esi*n and "etail information is re*ularly made a%ailable to foot)ear
manufacturers to hel# them suitably address the season3s re2uirement+
The Indian -oot)ear Industry is *earin* u# to le%era*e its stren*ths
to)ards ma4imi5in* bene6ts+ Stren*th of India in the foot)ear sector
ori*inates from its command on reliable su##ly of resources in the form of
ra) hides and s'ins, 2uality 6nished leather, lar*e installed ca#acities for
#roduction of 6nished leather 7 foot)ear, lar*e human ca#ital )ith
e4#ertise and technolo*y base, s'illed man#o)er and relati%ely lo) cost
labour, #ro%en stren*th to #roduce foot)ear for *lobal brand leaders and
ac2uired technolo*y com#etence, #articularly for mid and hi*h #riced
foot)ear se*ments+ "esource stren*th of India in the form of materials
and s'illed man#o)er is a com#arati%e ad%anta*e for the country+
The e4#ort tar*ets from 2008-09 to 2010-11 as tabulated belo) re:ects
the fact that foot)ear sector is the most si*ni6cant se*ment of the
;eather Industry in India+
India has emer*ed in recent years as a relati%ely so#histicated lo) to
medium cost su##lier to )orld mar'ets
The leather industry in India has been tar*eted by the ,entral
.o%ernment as an en*ine for economic *ro)th+ ro*ressi%ely, the
.o%ernment has #rodded and le*islated a reluctant industry to modernise+
India )as noted as a su##lier of ra)hides and s'ins semi #rocessed
leather and some shoes+
In the 1<80=s, the .o%ernment initially banned the e4#ort of ra) hides
and s'ins, follo)ed this by limitin*, then sto##in* the e4#ort of semi
#rocessed leather and encoura*in* local tanneries to manufacture
6nished leather themsel%es+ 0es#ite #rotestations from the industrialists,
this has resulted in a mar'ed im#ro%ement in the shoe manufacturin*
industry+ India is no) a ma!or su##lier of leather foot)ear to )orld
mar'ets and has the #otential to ri%al ,hina in the future >?0@of ,hinese
e4#orts are synthetic shoesA+India is often referred to as the slee#in* *iant
in foot)ear terms+ It has an installed ca#acity of 1,900 million #airs,
second only to ,hina+
It has o%er 100 fully mechanised, modern shoe ma'in* #lants, as *ood as
any)here in the )orld >includin* /uro#eA+ It ma'es for some u#mar'et
brands includin* -lorsheim >BSA, ;loyd >.ermanyA, ,lar's >BCA, Mar's and
S#encer>BCA+India has had mi4ed fortunes in its recent e4#ort
#erformance+ In 2010, e4#orts of shoes )ere BSD ?51 millionE in 2011
these increased to ??3 million but declined in 2012 to ?23 million dollars+
The main mar'ets for Indian leather shoes are BC and BSA, )hich
bet)een them ta'e about 55@ of total e4#orts+ India has not yet reached
its full #otential in terms of a )orld su##lier+ 1o)e%er, India is an e4cellent
su##lier of leather u##ers+ Im#ortation of u##ers from India does not
infrin*e -TA )ith /uro#e or the BSA+ The #otential is set to chan*e albeit
slo)ly, but )ith a #o#ulation ri%allin* ,hina for si5e, there is no doubt the
tussle for )orld domination in foot)ear su##ly is bet)een these t)o
countries+

COMPANY PROFILE
ADIDAS
In the small .erman %illa*e of 1er5o*enaurach the )orld be*an its lo%e
aFair )ith Adidas >"yno=s ,om#any 1istoryA+ In 1<20, Adolf $Adi( 0assler
brou*ht to
life those three little stri#es+ Gith his brother, "udol#h, 0assler
manufactured his 6rst s#orts shoe, made for trainin*, after reali5in* the
need for #erformance athletic shoes+ In1<H9, the 0assler brothers
se#arated to form their o)n t)o se#arate com#anies+ 0assler formed
Adidas and his brother formed uma, both head2uarters in
1er5o*enaurach+The Adidas mission has chan*ed little since founder Adi
0assler be*an ma'in* s#orts shoes in the 1<20sI to be the best s#orts
brand in the )orld+
Meetin* athlete needs is )hat ma'es Adidas the best+ Adidas America has
continued to build on this history+ In -ebruary of 1<<3, Adidas ac2uired
S#orts Inc+, a BS-based s#orts mar'etin* com#any founded by former &i'e
e4ecuti%es "ob Strasser and eter Moore+ S#orts Inc+ had been )or'in* in
con!unction )ith Adidas BSA on the desi*n, de%elo#ment, and mar'etin*
of the Adidas /2ui#ment line+ This line hel#ed re!u%enate and re#osition
the Adidas brand in the Bnited States by creatin* an e4clusi%e line
focused on ful6llin* the functional needs of the athlete and by utili5in* the
best materials and athlete in#ut in the tradition of Adi 0assler+ It oFered
moisture mana*ement, thermal insulation, )eather #rotection, ease of
mo%ement, and safety, hel#in* the athlete to #erform more eJciently+
After the successful creation and launch of Adidas America .eneral
Information -or o%er 93 years Adidas has been #art of the )orld of s#orts
on e%ery le%el, deli%erin* state-of-the-art s#orts foot)ear, a##arel and
accessories+
Today, )ith total net sales of ?+1 billion and net income of 209 million,
Adidas - Salomon is a *lobal leader in the s#ortin* *oods industry and
oFers the broadest #ortfolio of #roducts+ Adidas-Salomon #roducts are
a%ailable in %irtually e%ery country of the )orld+ Kur strate*y is sim#leI
continuously stren*then our brands and #roducts to im#ro%e our
com#etiti%e #osition and 6nancial #erformance+ The com#any3s share of
the )orld mar'et for s#ortin* *oods is estimated at around 15@+Acti%ities
of the com#any and its a##ro4imately 100 subsidiaries are directed from
Adidas-Salomon A.3s head2uarters in 1er5o*enaurach, .ermany+ Also
located in 1er5o*enaurach are the strate*ic business units for "unnin*,
Soccer and Tennis as )ell as the "esearch and 0e%elo#ment ,entre+
Additional 'ey cor#orate units are based in ortland, Kre*on in the BSA,
the domicile of Adidas America Inc+ and home to the strate*ic business
units Bas'etball, Ad%enture and Alternati%e S#orts+ The strate*ic business
unit .olf is based in ,alifornia+ The business unit Ginter S#orts is in
Annecy, -rance+ The com#any also o#erates desi*n studios and
de%elo#ment de#artments at other locations around the )orld,
corres#ondin* to the related business acti%ity+ Adidas-Salomon A. has
a##ro4imately 13,H00 em#loyees )orld)ide+
T#rno.er an' Bran' I%a"e
The turno%er of Adidas ,om#any has *ro)n to 1? Million BS dollar in
2008-09+Almost 53@ of the turno%er is from sale of a##arel and
accessories )ith the rest from foot )ear+ The Adidas brand is one of the
most #o#ular brands as determined by a )ithin brand sur%ey of
s#orts)ear brands in the year 2009+

F#t#re Plan&
TB"&KL/" IS /M/,T/0 TK "IS/ TK 19 MI;;IK& BS 0K;;A"
-K" A0I0AS I&0IA I& 20012-013 ,AS1 B"/AC-/L/& IS -K"/,AST
0B"I&.,A;/&0A" N/A" 20012 A&0 A& K/"ATI&. B"/AC /L/& 0B"I&.
2013+T1/ KT1/" A0I0AS
O
KG&/0 B"A&0S, SA;KMK& 7 TAN;K" MA0/ A"//M/,T/0 TK 1IT I&0IA&
A0I0AS STK"/S 0B"I&. 2012 A&0 2013

COMPANY PROFILE
NI!E
&i'e #roduces <0 million #airs of s#orts shoes e%ery year+ In 1<<9,
re%enue increased by H@ to record D<+?billion, after re%enue increase of
H2@ and 3?@res#ecti%ely in the t)o #recedin* years+ &i'e is still the
number one #roduces of s#orts shoes, )ith Adidas close behind+ &i'e is
not only the bi**est #roducer of s#orts shoes, but also s#ends the lar*est
amount of money on ad%ertisin* and #romotion+ In 1<<9 the com#any
s#ent D1+13 billion for this #ur#ose+ -amous s#ortsman such as Michael
Pordan, Andre) A*es and Ti*er
)oods=
ha%e their names lin'ed )ith &IC/ #roducts and recei%ed, res#ecti%ely DH5
million, D10million and D29 million in endorsements in 1<<9+ The com#any
desi*ns and
#roducts shoes for !ust about e%ery s#ort+ &i'eQs #resence in soccer >bein*
the )orldQs bi**est s#ortsA became stron*er after enterin* into ne) #artnershi#s
)ith
to# /uro#ean club teams such as -, Barcelona and A, Milan+ At the 1<<9
)orld cu#, si4 teams >Bra5il, 1olland, Italy, &i*eria, South Corea and the
BSAA com#eted in the 'its desi*ned by &i'e+ In &o%ember 1<<< &i'e
ne*otiated ne) contract )ith the 0utch sauces association C&LB, and the
0utch team )ill be #layin* )ith the s)oosh on their shirts until 200<, for
about 10 million *uilders a years+ /%er since the day 1<81 )hen uni%ersity
of Kre*on trac' coach Bill Bo)er man
#oured rubber into his )ifeQs )aRe iron, technolo*ical inno%ation has
been the
dri%in*
* force behind &i'eQs success+ ,oach Bo)er man 6*ured that e%ery ounce
he sha%ed of a milerQs shoe )ould result in 200 fe)er #ounds lifted o%er
the
distance+ 1is li*ht)ei*ht )aRe sole become the foundation of &i'e and
re%olutioni5ed and entire industry+
Bo)er manQs )aRe sole set the sta*e for an
unri%alled tradition of inno%ation+
HISTORY OF THE COMPANY
NI!E
The com#any )as founded on Panuary 25, 1<?H as Blue "ibbon
S#orts by 'i$$ 'o&erm#n and Phi$ .ni1ht, and oJcially became &i'e, Inc+ on
May 30, 1<89+ The com#any ta'es its name from Ni2e >.ree' STUV,
#ronounced A, the .ree' *oddess of %ictory+ &i'e mar'ets its #roducts
under its o)n brand, as )ell as &i'e .olf, &i'e ro, Ni2e9, Air Jord#n, Ni2e
S2#tebo#rdin1, and subsidiaries includin* Hur$e( Intern#tion#$ and Con6er/e+ &i'e
also o)ned Bauer 1oc'ey >later renamed Ni2e '#uerA bet)een 1<<5 and
2009, and #re%iously o)ned Co$e H##n and Umbro In addition to
manufacturin* s#orts)ear and e2ui#ment, the com#any o#erates retail
stores under the &i'e to)n name+ &i'e s#onsors many hi*h-#ro6le
athletes and s#orts teams around the )orld, )ith the hi*hly reco*ni5ed
trademar's of WJu/t )o ItW and the S&oo/h lo*o+
&i'e, is an American mu$tin#tion#$ corpor#tion that is en*a*ed in the desi*n,
de%elo#ment and )orld)ide mar'etin* and sellin* of foot)ear, a##arel,
e2ui#ment, accessories and ser%ices+ The com#any is head2uartered
near 'e#6erton, Kre*on, in the Port$#nd metropo$it#n #re#, and is one of only
t)o Fortune :;; com#anies head2uartered in Kre*on+ It is one of the )orld3s
lar*est su##liers of #th$etic /hoe/ and #pp#re$ and a ma!or manufacturer
of /port/ e<uipment, )ith re%enue in e4cess of BSD2H+1 billion in its 6scal year
2012 >endin* May 31, 2012A+ As of 2012, it em#loyed more than HH,000
#eo#le )orld)ide+ The brand alone is %alued at D10+8 billion, ma'in* it the
most %aluable brand amon* s#orts businesses+
In 1<?H, in its 6rst year in business, B"S sold 1,300 #airs of Pa#anese
runnin* shoes *rossin* D9,000+ By 1<?5 the :ed*lin* com#any had
ac2uired a full-time em#loyee, and sales had reached D20,000+ In 1<??,
B"S o#ened its 6rst retail store, located at 3108 ico Boule%ard in S#nt#
"onic#0 C#$i%orni# ne4t to a beauty salon, so its em#loyees no lon*er needed
to sell in%entory from the bac' of their cars+ In 1<?8, due to ra#idly
increasin* sales, B"S e4#anded retail and distribution o#erations on the
/ast ,oast, in Gellesley, Massachusetts
&i'e has ac2uired se%eral a##arel and foot)ear com#anies o%er the
course of its history, some of )hich ha%e since been sold+ Its 6rst
ac2uisition )as the u#scale foot)ear com#any Co$e H##n in 1<99, follo)ed
by the #urchase of '#uer Hoc2e( in 1<<H+ In 2002, &i'e bou*ht surf a##arel
com#any Hur$e( Intern#tion#$ from founder 'ob Hur$e(+ In 2003, &i'e #aid
BSD30< million to ac2uire Con6er/e, ma'ers of the Chuc2 T#($or A$$!St#r/ line of
snea'ers+ The com#any ac2uired St#rter in 200H and Umbro, 'no)n as the
manufacturers of the En1$#nd n#tion#$ %ootb#$$ te#m3s 2it, in 2009+
In order to refocus on its core business lines, &i'e be*an di%estin* of some
of its subsidiaries in the 2000s+ It sold Starter in 2008 and Bauer 1oc'ey in
2009+ The com#any sold Bmbro in 2012, and ,ole 1aan in 2013+ As of
2013, &i'e o)ns t)o 'ey subsidiariesI Con6er/e Inc- and Hur$e( Intern#tion#$+
ADIDAS
Adidas )as founded in 1<H9 by Ado$% )#//$er, follo)in* the s#lit of Gebrder
Da!er S"#$#%abr&' bet)een him and his older brother Rudo$%+ "udolf later
established Pum#, )hich )as the early ri%al of Adidas+ "e*istered in 1<H<,
Adidas is currently based in Her=o1en#ur#ch, .ermany+ uma is also based
in Her=o1en#ur#ch+
Adidas A. >.erman #ronunciationI > #di d#/? A is a .erman mu$tin#tion#$
corpor#tion that desi*ns and manufactures s#orts clothin* and accessories
based in Her=o1en#ur#ch, '#6#ri#, erm#n(+ -re2uently mis#ronounced as
>.erman #ronunciationI > #dI d /? A+ It is the ho$din1 comp#n( for the Adidas
.rou#, )hich consists of the Reebo2 s#orts)ear com#any, T#($or "#de!
Adid#/ *olf com#any >includin* A/h&orthA, Roc2port, and <+1@ of FC '#(ern
"unich+ Besides s#orts foot)ear, Adidas also #roduces other #roducts such
as ba*s, shirts, )atches, eye)ear, and other s#orts- and clothin*-related
*oods+ Adidas is the lar*est /port/&e#r manufacturer in .ermany and
/uro#e and the second bi**est s#orts)ear manufacturer in the )orld+
The com#any3s clothin* and shoe desi*ns ty#ically feature three p#r#$$e$ b#r/,
and the same motif is incor#orated into Adidas3s current oJcial lo*o+ The
com#any re%enue for 2012 )as listed at @1H+H9 billion+
In 1<<H, combined )ith FIFA Nouth .rou#, SOS Chi$drenA/ 4i$$#1e/ became the
main bene6ciary+
In 1<<8, Adidas A. ac2uired the S#$omon roup )ho s#eciali5ed in s'i )ear,
and its oJcial cor#orate name )as chan*ed to Adidas-Salomon A.
because )ith this ac2uisition Adidas also ac2uired the Taylor made .olf
com#any and "#7%$i, )hich allo)ed them to com#ete )ith &i'e .olf+
In 1<<9, Adidas sued the NCAA o%er their rules limitin* the si5e and
number of commercial lo*os on team uniforms and clothin*+ Adidas
)ithdre) the suit, and the t)o *rou#s established *uidelines as to )hat
three-stri#e desi*ns )ould be considered uses of the Adidas trademar'+
Adidas has *lobal cor#orate head2uarters in .ermany, and many other
business locations around the )orld such as ortland K", 1on* Con*,
Toronto, Tai)an, /n*land, Pa#an, Australia, and S#ain+ Mainly sold in the
B+S+, Adidas ma'es lots of assets from these countries and is e4#andin* to
more o%erseas countries+
By the end of 2012, Adidas is re#ortin* the hi*hest re%enues e%er and
,hief /4ecuti%e 1erbert 1ainer e4#resses o#timism for the year ahead
THE MANUFACTURING PRACTICES OF THE
FOOT)EAR INDUSTRYI
NI!E -S ADIDAS
The current manufacturin* #ractices of the snea'er industry, in #articular
com#anies such as &i'e, "eebo', Adidas, ,on%erse, and &e) Balance,
ta'es #lace throu*hout the *lobe+ Gith the industry e4#eriencin* se%ere
com#etition, and the #roduct re2uirin* intensi%e labor, 6rms are facin*
e4treme #ressure to increase their #ro6t mar*ins throu*h their sourcin*
#ractices+ The follo)in* #a#er )illanaly5e the snea'er industry, )hile
e4aminin* the multitude of %iable manufacturin* o#tions, and criti2uin*
their current manufacturin* structure+
MAR!ET SHARE /
NI!E
&i'e currently en!oys a H8@ mar'et share of the domestic foot)ear
industry, )ith sales of D3+88 billion+ &i'e has been manufacturin*
throu*hout the Asian re*ion for o%er t)enty-6%e years, and there are o%er
500,000 #eo#le today directly en*a*ed in the #roduction of their #roducts+
They utili5e an outsourcin* strate*y, usin* only subcontractors throu*hout
the *lobe+ Their ma!ority of their out#ut today is #roduced in factories in
,hina, Indonesia, and Lietnam, but they also ha%e factories in Italy, the
hili##ines, Tai)an, and South Corea+ These factories are 100@ o)ned by
subcontractors, )ith the ma!ority of their out#ut consistin* solely of &i'e
#roducts+ 1o)e%er, &i'e does em#loy teams of four e4#atriates #er each
of the bi* three countries >,hina, Indonesia, LietnamA, that focus on both
2uality of #roduct and 2uality of )or'in* conditions, %isitin* the factories
)ee'ly+ They also de%elo#ed their code of conduct in 1<<2 and ha%e
im#lemented it across the *lobe, as its *oal is to set the standard for
subcontractors to follo) if they )ish to do business )ith &i'e+ 1o)e%er,
due to a manufacturin* net)or' of this ma*nitude, they ha%e faced
numerous %iolations in%ol%in* factory conditions and human ri*hts issues,
)hich ha%e been )idely #ublici5ed+
ADIDAS
Adidas is currently en!oyin* the fastest *ro)th of any brand domestically,
)ith a mar'et share of ?@ and re%enues of D500 million+ They ha%e been
shielded from
bad #ublicity by the t)o .oliathQs of the industry, &i'e and "eebo', and
are
rea#in* the re)ards substantially+ They ha%e ad!usted their manufacturin*
strate*y, from a %ertical o#eration in .ermany in the
?0=s and 80=s, to an
outsourcin* focus today throu*hout Asia+ Bnli'e the bi* t)o, they do not
ha%e a code of conduct, and their factories are considered to be the )orst
in the industry+ It is !ust a matter of time before they are e4#osed, )ith an
under*round s)ellin* of ne*ati%ity already occurrin* today+ In order to
a%oid the ne*ati%e eFects and lost re%enues that &i'e and "eebo' ha%e
recei%ed, they need to immediately be* into ta'e a #roacti%e stance in
re*ards to the )or'in* conditions of their factories+
RESEARCH OBJECTI-ES 0 METHODOLOGY

RESEARCH OBJECTI-E

To study the mar'etin* of Adidas and &i'e and also about the current
condition of Adidas 7 &i'e in mar'et+

To 6nd out )hy Adidas and &i'e are main com#etitors+
To 6nd out that ho) Adidas hold to the mar'et and )hat are the areas in
)hich Adidas can im#ro%e+
The %arious as#ects related to the mar'etin* strate*y of Adidas and to
ma'e further su**estions for its im#ro%ement+
A study to #ro%ide insi*ht into the bene6ts of mar'etin* techni2ues
ado#ted by com#anies and its eFecti%eness in the foot)ear industry+
To study the foot)ear industry in India )ith reference to Adidas and &i'e
shoes+
To *et the customer, dealer and retailers #erce#tions
To 'no) the IndustryQs internal and e4ternal en%ironment by 'no)in* Stren*th,
Gea'nesses, K##ortunities and Treats+
To analyse the current scenario to 6nd out the future #ros#ect of casual
shoes mar'et+
S#ace #lannin* solutions to o#timi5e sales, mar*ins and consumer loyalty
METHODOLOGY
0ATA ,K;;/,TIK& M/T1K0SI

The sam#le si5e ta'en )as 20 consumers
Sam#le unit
O
Shoes ,om#any >Adidas, "eebo', Bata, &i'eA The Area chosen )as *reater
noida+

The Q1 results show that there is a tight fight between Adidas and
Nike, where in our case Nike wins with !" over A#i#$s%s 1"&
This result shows that Adidas still has to work on its promotion, new
designs, and attractiveness to young people. This survey shows that
basically Adidas and Nike are two strongest brands.
'1" () *isit(rs h$*e he$r# $+(ut the ter, e-C(,,er.e while $t the
s$,e ti,e (nl/ 00" () the, h$*e $.tu$ll/ use# it&
From this information we can conclude that Adidas should invest more in
promoting online shopping and e!ommerce and attracting young
customers to use it.

Q1 sh(ws us that there is a larger amount of people who have actually
bought product online. !2" is w$/ $+(*e the e34e.te# $n# re$l
results&
"ut this shows that ma#ority of internet users have purchased some
product online. Adidas can use this for its further promotion. $t shows the
increased interest of people who want to buy something online
compared to previous years.
T1e Mar2etin" Mi3 *T1e 4 P5& o$ Mar2etin",
Mar'etin* decisions *enerally fall into the follo)in* four controllable
cate*oriesI

Pro'#ct
Price
Place *'i&tri6#tion,
Pro%otion
T1e Mar2etin" Mi3
The term Wmar'etin* mi4W became #o#ulari5ed after &eil 1+ Borden
#ublished his 1<?H article, The ,once#t of the Mar'etin* Mi4+ Borden
be*an usin* the term in his teachin* in the late 1<H03s after Pames
,ulliton had described the mar'etin* mana*er as a Wmi4er of in*redientsW+
The in*redients in Borden3s mar'etin* mi4 included #roduct #lannin*,
#ricin*, brandin*, distribution channels, #ersonal sellin*, ad%ertisin*,
#romotions, #ac'a*in*, dis#lay, ser%icin*, #hysical handlin*, and fact
6ndin* and analysis+ /+ Perome Mc,arthy later *rou#ed these in*redients
into the four cate*ories that today are 'no)n as the H3s of mar'etin*,
de#icted belo)I
These four 3s are the #arameters that the mar'etin* mana*er can
control, sub!ect to the internal and e4ternal constraints of the mar'etin*
en%ironment+ The *oal is to ma'e decisions that centre the four 3s on the
customers in the tar*et mar'et in order to create #ercei%ed %alue and
*enerate a #ositi%e res#onse+
Pro'#ct Deci&ion&
The term W#roductW refers to tan*ible, #hysical #roducts as )ell as
ser%ices+ 1ere are some e4am#les of the #roduct decisions to be madeI
Brand name
Stylin*
Xuality
Price Deci&ion&
Some e4am#les of #ricin* decisions to be made includeI
ricin* strate*y >s'im, #enetration, etc+A
,ash and early #ayment discounts
rice :e4ibility
rice discrimination
0istribution >laceA 0ecisions
0istribution is about *ettin* the #roducts to the customer+ Some e4am#les
of distribution decisions includeI
0istribution channels
Mar'et co%era*e >inclusi%e, selecti%e, or e4clusi%e distributionA
Garehousin*
0istribution centres
Trans#ortation
Pro%otion Deci&ion&
In the conte4t of the mar'etin* mi4, #romotion re#resents the %arious
as#ects of mar'etin* communication, that is, the communication of
information about the #roduct )ith the *oal of *eneratin* a #ositi%e
customer res#onse+ Mar'etin* communication decisions includeI

romotional strate*y >#ush, #ull, etc+A
Ad%ertisin*
ersonal sellin* 7 sales force
Sales #romotions
AD-ERTISING
As #er Adidas ad%ertisin* can *et results in a #romotion blend+ .ood
results are obtained at a cost of course+ The amount s#ent in the Bnites
States for ad%ertisin* is *ro)in*+ ,ontinuously, from Gorld Gar II to 1<90
it )ent from D1 billion toD50 billion+ Adidas also s#ends nearly D2+< million
on its ad%ertisin* throu*hout the )orld+ Adidas in India is s#endin* almost
D18 million on ad%ertisin*+ The hea%y )ei*ht #layers li'e Sachin
Tendul'ar, ;eander aes and Mahesh Bhu#athi are already attached )ith
their ad-cam#ai*ns+

PRICING7
Adidas is clearE it )ants to become the no+ one s#orts brand in India, a
choice brand for all brands+ So far so *ood, but ho) )ill it tac'les a #rice
conscious mar'et li'e IndiaY Adidas feels that bein* a hi*h ener*y
business Adidas introduces ?00-800 articles e%ery si4 months
-enables the brand to remain fresh and brin* on an international and
Indians the brand from the #rice stand #oint+
rice, thatQs the most critical factor in the Indian conte4t+ Adidas belie%es
it has to
deli%er a functional at an aFordable #rice+
ItQs a tou*h !ob O
to maintain the inte*rity of the #erformance and still come out )ith a
#roduct a ri*ht #rice #oint+ .lobally shoes start at D50+ But in India as the
#ercei%ed need is lo)er, you ha%e to ma'e the #roduct more aFordable+
To tac'le this, Adidas came out )ith s#eed 2000, a #roduct #riced at
"s+<<5 )ith the hel# of local and 1on* Con* source #eo#le+ Adidas
ho)e%er feels that
itQs !ust the matter of time before India co%era*eQs the )orld on this front+ It is
%ery diJcult to o#erate on a lo)er #rice #oint and maintain inte*rity
of #roduct, but itQs
been barely 3 years since the s#orts mar'et has ta'en oF+ The ori*inal
sector is !ust 20@ of the total mar'et and 90@ of the %olumes comes from
s#orty shoes+ But our mar'et is #roducin* #roducts at a #rice that is
rele%ant to the consumers+ Adidas feels that as the %olume *o u#, Adidas
)ill try and )or' out #rice #oints as #eo#le *raduate )ith better
understandin* of 2uality and #rice #erce#tion+ Lolumes are bound to *o
u#+ Adidas started at the time )hen India had no stren*th out in the
s#orts #roducts mar'et in 1<9<
O
ItQs then licensin* #artner Bata, and it had limitations of )hat it could ha%e
#ut behind the brand+ So com#any too' the ne4t best ste# )hen the
licensin* a*reement ended to ta'e a bi**er share in business+ To conclude
)e can say that Adidas is #uttin* all eForts to brin* do)n the #rice
consciousness in the Indian mar'et+ ,om#any is tryin* to ma'e #roducts,
)hich are easy to aFord and still maintain the inte*rity of their
#erformance+ .ro)th has been #henomenal for Adidas e%en *i%en the
base is small+ In 2002 Adidas *re) by 25@, 2003 by o%er 50@ and this
year Adidas is e4#ectin* more than 50@ in terms of %alue in both shoes
and a##arel, )hile the industry *ro)th has a best case estimate has been
20-25@
ADIDAS OTHER STRATEGY
Knly no), the settin* is not the #lay*round or the trac' or the court, it is
the urban landsca#e )ith its omni#resent traJc !ams, cro)ded streets
and so forth+ This )ay, Adidas becomes a #art of life anyoneQs life+ Nou
donQt ha%e to be the
hi*h-%olta*e #erformer to be a #art of the Adidas family+ And it *oes
beyond that Adidas becomes somethin* that ma'es you better+ &ot !ust as
an athlete, but as a s#orts #erson, a better human bein*+ Kne of the
ad%ertisementI The s#ot featurin* Boldon, sho)s him chasin* a thief
>)hoQd stolen a TL set )hen its o)ner )as in the bathA
THE ADIDAS LOGO
The $Trefoil( )as ado#ted as the cor#orate lo*o in 1<82+ It re#resents the
herita*e and history of the brand+ In 1<<?, it )as decided that the Trefoil
)ould only be used on herita*e #roducts+ /4am#les of #roduct featurin*
the Trefoil lo*o include the Stan Smith, "oad ;a%er, A-15 )arm-u#, and
,lassic T-shirt+ /2ui#ment The Adidas /2ui#ment line )as launched in
1<<1+ This line of foot)ear and a##arel re#resents the most uni2ue and
functional of Adidas #roducts+ /2ui#ment is the ultimate e4#ression of
)hat is uni2uely #ossible by desi*n )hen form follo)s function+ In Panuary
1<<?, the Three-Stri#e brand mar' became the )orld)ide Adidas
cor#orate lo*o+ This lo*o re#resents #erformance and the future of the
Adidas brand+ This lo*o is used in all ad%ertisin*, #rinted collateral and
cor#orate si*na*e+
Since 1<H<, the Three-Stri#es ha%e been an inte*ral #art of our brand and
#roduct desi*ns+ This trademar' has become synonymous )ith Adidas and
its dedication to #roducin* hi*h-2uality athletic #roducts to hel# athletes
#erform better+
MAR!ETING 0 AD-ERTISING STRATEGIES OF NI!E
In the late 20thcentury American, the cultural ca#ital of cor#orations had
re#laced many human forms of ca#ital+ As )e but, )ear, and eat lo*os, )e
become the henchmen and admen of the cor#oration, de6nin* oursel%es
)ith res#ect to the social standin* of the %arious cor#orations+ Some
)ould say that this the ne) form of tribalism that is s#ort cor#orate lo*os
)e rituali5e and humani5e them, )e rede6ne the cultural ca#ital of the
cor#orations in human social terms+ I )ould say that a state )here culture
is indistin*uishable from lo*o and )here the #ractice of
culture ris's infrin*ement of #ri%ate #ro#erty is a state that %alues the
cor#orate o%er the human+ In li*ht of the rash of 'illin*s o%er &i'e shoes in
1<<1 and the continued mar'et dominance of the brand, clearly &i'e
e4erts a si*ni6cant social and #sycholo*ical force on the American
consumer+ It is my assertion that &i'e a##eals to a buyin* #ublic that
treats 6tness as a )orthy indi%idual foal )hich simultaneously im#arts
social identi6cation+ The 2uestion remains ho)Y &i'e ads, )hen 6rst
released
)ere $treated li'e ne) #lays or boo's(+
,oncernin* semiotic analysis informs this discussion and stands as a *reat
study aid interestin* readA+
Bnloc'in* &i'eQs Ads

I #lan to )or' )ith a small number of &i'e ads that s#ea' to the entire
*enre, thou*h a thorou*h analysis )ould include the Air Pordan series, the
)omen-
oriented $/m#athy( cam#ai*n, and All ,onditions .ear ads to name
de)+ I ho#e to incor#orate a )ider %ariety of &i'e ad%ertisements at a
later date+
&i'eQs ads, li'e any other businesses re2uire inter#retation+ Some of this
readin* *oes on at the conscious le%el, some unconsciously+ As o##osed to
e4tremist on either side of the inter#reti%e 2uestion, I fall most nearly to
the constructi%ist #oint of %ie) in that I %ie) meanin* as inter#lay
bet)een te4t and the reader+
,handler )rites, $Te4ts are full of indeterminacyQs )hich re2uire the readerQs
acti%e inter#retation+ Ge must dra) not only on our 'no)led*e of
lan*ua*e, but
on our 'no)led*e of the )orld+ (

Thus, readers of ad%ertisements brin* )ith them a surface 'no)led*e of
the lan*ua*e as )ell as a set of #reconcei%ed ideas about ho) to relate
the ad to themsel%es+ These mental tem#lates are 'no)n as schemata+
/4am#les of these may include ideas of the rebel, cor#orate businessman,
or mechanics= *ara*es+
Ads )or' on a %ariety of diFerent le%els includin*, but not limited to, si*n
ty#olo*y, #aradi*matic meanin*, #sycholo*ical a##eals, emotion, roles,
%aluesZbeliefs, and 'no)led*e+ A*ain, the im#act of an ad comes from the
inter#lay bet)een these %arious as#ects of ma'eu#
and the readerQs o)n notions about himZherself and the )orld+ So, ta'in*
the $Test Nour -aith( ad as our 6rst
e4am#leI Strai*ht oF, the reader 6nds himZ herself thrust into the schema
of reli*ious )orshi#+ &ot only must the %ie)er literally loo' u# to the
runner, but
heZshe recei%es the im#erati%e to $Test your faith+(
The runner #ictured a##ears in the midst of a run and rests easy in the
'no)led*e of his o)n *od- li'e attention to 6tness+ ;i'e)ise, the runner
has no identity beyond his role in the ad+ That is, )e cannot see his face,
*i%in* him an added element of the un'no)n di%ine+ The reader feels
co)ed loo'in* from a subordinate #osition at the 6*ure of the runner in
his element+ The te4t im#lies a direct connection bet)een e4ercisin* >in
this case, reinin*A and reli*ious 2uestionin* the )riters seem to su**est
an element of transcendence #ossible in e4ercise, as )ell as the need to
continually 2uestion )ho )e are in relation to our *ods and )hat )e hold
most sacred+ -or the runner in the ad, e4ercise in the ob!ect of sanctity+
Net the reader mi*ht inhabit a diFerent role by #lacin* themsel%es as the
runner in the ad itself+ Trans#orted from readin* a ma*a5ine to the middle
of a run,
6lled )ith the sensual #leasure of usin* oneQs body, the reader identi6es
himZherself as the [tester of faith, [And 6ndin* the #urity of e4ercise )ithin the
soul, the reader can acce#t a measure of hearty self-con*ratulation+ A
sli*htly dissimilar an*le for inter#retation )ould be to ima*ine the set of
causes or dri%es that #ro#elled the runner in the ad from his home to the
streets for a run+ The measure of the indi%idual in contem#orary society
rests u#on the e4tent to )hich they e4ercise their body+ Seein* the runner
en*a*ed in a lon* run should im#el the reader to ima*ine their o)n set of
%alues and desires+ Ghat )ould it ta'e to *et them on the streets for a
runY 1o) im#ortant is e4ercise to that #ersonY The ads #lace 6tness as a
to# #riority and su**est that the reader must ac'no)led*e the 6tness
culture, e%en if they do not ta'e an acti%e #art+ -inally, the *ritty *rey and
)hite tones of the ad%ertisement insinuate a harsh )orld in )hich runnin*
becomes an esca#e+ "eadin* the ads, #erha#s themsel%es members of
such a life, %ie)ers )ill immediately see' the release and redem#tion that
runnin* and e4ercise oFer+
Mo%in* on to another e4am#le of runnin* ad%ertisin*, )e loo' at $Nou
either ran\(
A*ain #laced in the dichotomy bet)een athletes and s#ectators, the
reader need only ans)er one 2uestion+ 1a%e I run todayY "es#ondents )ill
fall neatly into t)o cate*ories and can ta'e )ith them the re2uisite set of
emotions set of emotions that came )ith their ans)er+ Identi6cation and
aJliation )ith others, a##ro%al, self-)orth, and #ride all s#rin* from the
ans)er
$yes+( Mean)hile, shame >6rst and foremostA and ostraci5ation from the [in
cro)d= lea%e a bitter taste in the mouths of those ans)erin* [on+= lacin* the
runner a*ainst a neutral bac'*round *i%es the a##earance of a %oid in
)hich must be #laced the sum of %ie)ers= athletic endea%ours+ They )ill
be !ud*ed and *i%en admittance or refusal to the )orld that &i'eQs runner
inhabits+ The )orld of the as is com#osed of little more than the runner
and the bland s'y behind him+ -or the reader, the added force of the te4t
almost tauntin*, by no) ma'es the #oint clear+ Nou must belon*+ Cat5
assert that $&i'eQs ads in trac' and 6eld and runnin* ]ma*a5ines^ ha%e
lon* been ac'no)led*ed to be as much a)ay to su##ort the s#ortQs means
of communication as )ays to sell *ear( >11<A+ Ghile this may be lettin* &i'e oF
a bit easy, the ad%ertisements abo%e demonstrably s#ea' to an elite
*rou# of readers )ell-%ersed in the intricacies of runnin*+ All these factors
tie into the on-*oin* cultural formation of the 6t body discussed in this
#ro!ectQs+ 0urin* the late 1<90s, &i'e attained a relati%e saturation of the
B+S+ mar'et for athletic *oods and a##arel, lea%in* &i'e e4ecuti%es
)onderin*
[)here do )e *o from hereY A##ealin* to a hi*her sense of e4cellence >are, to
borro) another .ree' )ord married to the #hiloso#hy of &i'eA, &i'e ho#ed
to inculcate a sense of indi%idual accom#lishment #ossible on s#ort as
)ell as #lay into that %ery same sense already buddin* in the breasts of
consumers+ 1erein lays another e4am#le of the indi%isibility of
the 6tness culture and &i'eQs #lace in it+ hil
Cni*ht on mar'etin*I $Ghat &i'e does )ell is to inter#ret )hat #eo#le
are doin*, )hat
theyQre interested

in and )eQ%e been luc'y enou*h to ali*n oursel%es com#letely )ith )hat
)e #ercei%e( >Cat5 1<<HI 150A+
But one should not ima*ine &i'e as a mere re:ect of #o#ular culture, as
the ad%ertisin* e4am#le abo%e relate+ In fact, Pensen >Ad%ertisin* A*e,
12Z1?Z<?A in*_nues
&i'eQs
mar'etin* formula to consist of the inte*ration of the s)oosh into the
cultural fabric of s#orts and harnessin* of its emotional #o)er+ Kri*inally,
Cni*ht hated ads and s#ent must more on #romotions+ -or e4am#le
in1<8?, only D100,000 )as allocated for ad%ertisin* %ersus D310,000 for
#romotion >Strasser 7 Bac'land, 1<<HI23<A+ Cni*ht and the other &i'e
e4ecuti%es 'ne) )ell
$the im#ortance of o)nin* athlete endorsed a##arel\to youth for the sense
of cultural #o)er and belon*in* it im#arted( >Gilson 7 S#ar's, 1<<?IH15A+
And
)ho can deny the success of such lon*-term #romotional eForts as the
&i'e Air Pordan cam#ai*n+
S)OT ANAYSIS
ADIDAS

Stren*thsI
The main stren*th of Adidas is his roduct Xuality+ The 2uality and the
material uses in Adidas are %ery *ood+ The com#any has a *ood brand
ima*e in the mar'et, the #ublicity and the ad%ertisement is also %ery *ood
and lastly com#any holds a healthy mar'et share in the mar'et+ Adidas
Shoes is a %ery com#etiti%e or*ani5ation+ hil Cni*ht >-ounder and ,/KAis
often 2uoted as sayin* that 3Business is )ar )ithout bullets+3 Adidas Shoes
has a healthy disli'e of its com#etitors+ At the Atlanta Klym#ics, "eebo'
)ent to the e4#ense of s#onsorin* the *ames+ Adidas Shoes did not+
1o)e%er Adidas Shoes s#onsored the to# athletes and *ained %aluable
co%era*e+ Adidas Shoes has no factories+ It does not tie u# cash in
buildin*s and manufacturin* )or'ers+ This ma'es a %ery lean
or*ani5ation+ Adidas Shoes is stron* at research and de%elo#ment, as is
e%idenced by its e%ol%in* and inno%ati%e #roduct ran*e+ They then
manufacture )here%er they can #roduce hi*h 2uality #roduct at the
lo)est #ossible #rice+ If #rices rise, and #roducts can be made more
chea#ly else)here >to the same or better s#eci6cationA, Adidas Shoes )ill
mo%e #roduction+ Adidas Shoes is a *lobal brand+ It is the number one
s#orts brand in the Gorld+ Its famous 3S)oosh3 is instantly reco*ni5able,
and hil Cni*ht e%en has it tattooed on his an'le+
Gea'nessI
The ma!or )ea'ness in the Adidas is that the manufacturin* of the
#roducts of Adidas is not done in India itself it is bein* im#ort hence the
cost become hi*h
and the mar*in of #ro6t becomes lo) thatQs )hy com#any must *i%e a dee#
thou*ht on manufacturin* their #roducts in India+ Another ma!or )ea'ness
in the com#any is that it is not caterin* to all the se*ments )hich I ha%e
already discuss abo%e, If these t)o )ea'ness in the com#any can be
eradicated then the com#any may earn hi*h #ro6t and better mar'et
status+ The or*ani5ation does ha%e a di%ersi6ed ran*e of s#orts #roducts+
1o)e%er, the income of the business is still hea%ily de#endent u#on its
share of the foot )ear mar'et+ This may lea%e it %ulnerable if for any
reason its mar'et share erodes+

K##ortunitiesI
Adidas does ha%e many #roducts for the urban se*ment or #oor #eo#le,
but there is hardly any #roduct or )e can say that there are no #roducts
for this se*ment+ India is more a rural country, in the total #o#ulation of
India ma!or #art of #o#ulation li%es in rural area and these #eo#le cannot
aFord the costly #roducts of the com#any li'e Adidas hence com#any
must tar*et this #articular se*ment they must introduce the shoes and
other #roduct accordin* to their demands+ And also #rice is one of the
ma!or factor )hich may in:uence this ty#e of se*ment hence com#any
should ma'e their #olicy accordin*ly+ ,om#any must also consider the
ra*e of #roducts as com#are to &i'e and "eebo'+ In my o#inion the
com#any must introduce more ra*e or more %ariety in the mar'et to
com#ete )ith their com#etitors and also the customers ha%e more choices
to choice the #roduct from+ roduct de%elo#ment oFers Adidas Shoes
many o##ortunities+ The brand is 6ercely defended by its o)ners )hom
truly belie%e that Adidas Shoes is not a fashion brand+ 1o)e%er, li'e it or
not, consumers that )ear Adidas Shoes #roduct do not al)ays buy it to
#artici#ate in s#ort+ Some )ould ar*ue that in youth culture es#ecially,
Adidas Shoes is a fashion brand+ This creates its o)n o##ortunities, since
#roduct could become unfashionable before it )ears out i+e+ consumers
need to re#lace shoes+ There is also the o##ortunity to de%elo# #roducts
such as s#ort )ear, sun*lasses and !e)ellery+ Such hi*h %alue items do
tend to ha%e associated )ith them, hi*h #ro6ts+ The business could also
be de%elo#ed internationally, buildin* u#on its stron* *lobal brand
reco*nition+ There are many mar'ets that ha%e the dis#osable income to
s#end on hi*h %alue s#orts *oods+ -or e4am#le, emer*in* mar'ets such
as ,hina and India ha%e a ne) richer *eneration of consumers+ There are
also *lobal mar'etin* e%ents that can be utili5ed to su##ort the brand
such as the Gorld ,u# >soccerA and The Klym#ics+
ThreatsI
Adidas does not ha%e stron* distribution net)or' as com#are to &i'e and
"eebo' in India+ &i'e has more number of retail outlet then Adidas and
"eebo' has a uni2ue distribution net)or', the com#any "eebo' not only
use its outlet for the
sale of their #roduct but also use some other shoes com#any outlet li'e $Bata(+ In
a Bata sho)room u can 6nd "eebo' shoes and other #roducts+ But this is
not a case )ith Adidas hence "eebo' has an e4tra ad%anta*e o%er Adidas+
Adidas Shoes is e4#osed to the international nature of trade+ It buys and
sells indiFerent currencies and so costs and mar*ins are not stable o%er
lon* #eriods of time+ Such an e4#osure could mean that Adidas Shoes
may be manufacturin* andZor sellin* at a loss+ This is an issue that faces
all *lobal brands+
The mar'et for s#orts shoes and *arments is %ery com#etiti%e+ The model
de%elo#ed by hil Cni*ht in his Stamford Business School days >hi*h %alue
branded #roduct manufactured at a lo) costA is no) commonly used and
to an e4tent is no lon*er a basis for sustainable com#etiti%e ad%anta*e+
,om#etitors are de%elo#in* alternati%e brands to ta'e a)ay Adidas
Shoes=
mar'et share+ As discussed abo%e in )ea'nesses, the retail sector is
becomin* #rice com#etiti%e+ This ultimately means that consumers are
sho##in* around for a better deal+ So if one store char*es a #rice for a
#air of s#orts shoes, the consumer could *o to the store alon* the street
to com#are #rices for the e4actly the same item, and buy the chea#er of
the t)o+ Such consumer #rice sensiti%ity is a #otential e4ternal threat to
Adidas Shoes+ 3If you ha%e a body, you are an athlete3 - Bill Bo)erman said
this cou#le of decades a*o+ The *uy )as ri*ht+ It de6nes ho) he %ie)ed
the )orld, and it de6ne sho) Adidas Shoes #ursues its destiny+ Kurs is a
lan*ua*e of s#orts, a uni%ersally understood le4icon of #assion and
com#etition+ A lot has ha##ened at Adidas Shoes in the 30 years+
S)OT ANALYSIS7
NI!E

Stren*thsI
&i'e is the )orldQs no+ 1 shoema'er+ It desi*ns and sells shoes for a %ariety of
s#orts includin* baseball, *olf, cheerleadin*, %olleyball, tennis and
football+
&i'e uses a $Ma'e to Stoc'( customer order )hich #ro%ides a fast ser%ice to
customers from a%ailable stoc'+ &i'e o#erates &i'e To)n shoe and
s#orts)ear stores, &i'e factory outlets and &i'e Gomen sho#s+ &i'e sells
its #roducts throu*hout BS and in more than 190countries+&i'e is stron*
at research and de%elo#ment, as is e%idenced by its e%ol%in* and
inno%ati%e #roduct ran*e+ They then manufacture )here%er they can
#roduce hi*h 2uality #roduct at the lo)est #ossible #rice+ &i'e is a *lobal
brand+ It is the number one s#orts brand in the Gorld+ Its famous
[S)oosh= is instantly reco*ni5able, and hil Cni*ht >-ounder and ,/KA
e%en has it tattooed on his an'le+
Gea'nessesI
The income of the business is still hea%ily de#endent u#on its share of the
foot)ear mar'et+ This may lea%e it %ulnerable if for any reason its mar'et
share erodes+ The retail sector is %ery #rice sensiti%e+ 1o)e%er, most of its
income is deri%ed from sellin* into retailers+ "etailers tend to oFer a %ery
similar e4#erience to the consumer+ So mar*ins tend to *et s2uee5ed as
retailers try to #ass some of the lo) #rice com#etition #ressure onto &i'e+
K##ortunitiesI
roduct de%elo#ment oFers &i'e many o##ortunities+ The brand is 6ercely
defended by its o)ners )hom truly belie%e that &i'e is not a fashion
brand ho)e%er consumers that )ear &i'e #roduct do not al)ays buy it to
#artici#ate in s#ort+ In youth culture es#ecially, &i'e is a fashion brand+
This creates its o)n o##ortunities, s There is also the o##ortunity to
de%elo# #roducts such as s#ort )ear, sun*lasses and !e)ellery+ Such hi*h
%alue items do tend to ha%e associated )ith them, hi*h #ro6t The
business could also be de%elo#ed internationally, buildin* u#on its stron*
*lobal brand reco*nition+ There are also *lobal mar'etin* e%ents that can
be utilised to su##ort the brand such as the Gorld ,u# >soccerA and The
Klym#ics+
ThreatsI
&i'e is e4#osed to the international nature of trade+ It buys and sells in
diFerent currencies and so costs and mar*ins are not stable o%er lon*
#eriods of time+ Such an e4#osure could mean that &i'e may be
manufacturin* andZor sellin* at a loss+ This is an issue that faces all *lobal
brands+ The mar'et for s#orts shoes and *arments is %ery com#etiti%e+
,om#etitors are
de%elo#in* alternati%e brands to ta'e a)ay &i'eQs mar'et share+
RECOMMENDATIONS

Both ,om#any should stren*then its distribution net)or'
K#enin* of com#any o)ned sho)rooms is recommended as it should be a
#lace to sho)case the latest #roducts
I recommend the both com#anies should concentrate in rural areas )hich
it has ne*lected a lot+ I mean smaller cities as the *ro)th #otential lies
there+
LIMITATIONS
1A Its tou*h to 6nd data on com#any )as not ready to share data )ith me+
2A Time )as a constraint+
3A Adidas )ere a##rehensi%e in di%ul*in* the details about com#any
and its mar'etin* strate*ies thus )e tried to *et the data from
ad%ertisement a*ency articles and net+
HA Gith the en%ironment bein* #rone to hi*h %itality thus rele%ance
of this #ro!ect after si4 months is a 2uestionable thin*+
5A The focus of study is local in nature as mobility )as a #roblem+
CONCLUSIONS 0 IMPLICATIONS
Both com#anies Adidas and &i'e ha%e al)ays been dri%en by its Lalue-for-
money strate*y+ The com#any needs to identify critical success factory
and )or' assiduously to)ards achie%in* it+ As the )orld *ro)s to become
one, many #roblems )ill arise that cannot be sol%ed+ Kne of the #rimary
challen*es associated )ith *lobali5ation is balancin* con:ictin* and
com#etin* ob!ecti%es+ In the case of Adidas, it has faced such #roblems
already and ho) they ha%e dealt )ith them is )ith :e4ibility
and calmness+ 0es#ite )hat could be hi*her costs, Adidas has chosen to
stic' )ith their human ri*ht codes and standards of /n*a*ement rather
than continue to be associated )ith subcontractors )ho treat )or's in
inhumane )ays+ As Adidas has *ro)n )orld)ide, it has had to deal )ith
#roblems of hetero*eneity %s+ homo*eneity+ In other )ords, in an
increasin*ly hetero*eneous and *lobal )orld, di%ersity in the )or'#lace
has a##eared to emer*e as an issue+ ,om#anies, includin* Adidas are
no lon*er homo*enous in the sense that their com#anies ha%e *ro)n
)orld)ide+ And as a result, Adidas has had to ma'e )orld)ide
head2uarters and #roduce information and #roducts in se%eral diFerent
lan*ua*es+ 1a%in* to s#read its )or'force, Adidas has come to de#end on
intan*ibles+ The 'no)led*e, )orld)ide e4#erience and di%ersity that an
Adidas em#loyee can brin* to the table are %aluable+ "ecently, ho)
successful com#anies are in the *lobal )orld is increasin*ly deri%ed from
intan*ibles, such as these, that or*ani5ations cannot o)n+ Adidas is
*reatly aFected by these e4ternal in:uences since indeed it is a *lobal
com#any+ -or some it is not common 'no)led*e that Adidas is a .erman
com#any+ This is a result of *ood *lobal business+ Adidas has created a
#roduct that is *lobal and )ith that di%ersity and 'no)led*e *reatly aFect
the com#any+ Adidas must be able to easily ada#t to diFerent cultures and
must be culturally a)are )hen conductin* business+ The lon* list of
Adidas subsidiaries )here it conducts business #ro%es that Adidas is
constantly ada#tin* to cultural chan*es and must be e4tremely di%erse+
Because of this necessity, 'no)led*e is *reatly %alued+ .reat chan*es
occur in this industry and as a result, ne) ideas, intuition and ins#iration
are an asset that is a necessity in this industry and to remain a *lobal
com#any+ Gho leads this 'no)led*e and maintains di%ersity are the
mana*ers, yet they too are facin* ne) chan*es+ The )orld-economy is
no) #assin* throu*h the recession #eriod+ So it is %ery diJcult either to
#redict future trend or to decide strate*y to boost u# e4#ort sales+ This
*lobal recession has also aFected the leather foot)ear industry+ But
considerin* it as a tem#orary #hase )e can deri%e some im#ortant
conclusions li'e belo)I India has a boomin* *arment and shoe mar'et+ In
%arious cities there, ne) sho##in* malls ha%e s#run* u# one after another
and sellers com#ete to e4hibit latest #roducts )hile consumers e4hibit
ea*er demand for brand #roducts+ Many brands e4#and their businesses
throu*h franchised o#eration, #articularly *arment and shoe brands+
By2012, franchised o#eration is e4#ected to hit ?@ in *ro)th rate,
amountin* to BS0 18
bi$$ion in tot#$ 6#$ue- Thi/ me#n/ th#t thi/ m#r2et &i$$ cre#te /ub/t#nti#$ opportunitie/ re$#ted
to %r#nchi/ed oper#tion- Accordin1 to in/ider/0 #$mo/t #$$ intern#tion#$ 1#rment #nd /hoe
br#nd/ #re 1$o#tin1 o6er the Indi#n m#r2et or ne1oti#tin1 &ith $#r1e te7ti$e #nd 1#rment
comp#nie/ there concernin1 %r#nchi/in1 #1reement- Bith the entr( o% m#n( $#r1e
intern#tion#$ br#nd/ into Indi#n m#r2et0 Indi# i/ be1innin1 to %ormu$#te /peci%ic $#&/ #nd
re1u$#tion/ concernin1 %r#nchi/ed oper#tion- Or1#ni=ed ret#i$ /c#$e in Indi# on$( occur/
recent$(- Adid#/ i/ one o% the %ir/t br#nd/ to imp$ement %r#nchi/ed oper#tion #nd current$(0
#$mo/t #$$ /port/ /hoe br#nd/0 inc$udin1 Reebo20 Adid#/ #nd Ni2e0 #re oper#ted in thi/ mode-
Indi#n hi1h!end /port/ /hoe #nd 1#rment m#r2et i/ e7pected to #chie6e C;D 1ro&th r#te
thi/ (e#r- The current m#r2et i/ /hi%tin1 %rom $o&!price /hoe/ to medium #nd hi1h!end
product/ 0thu/ #ttr#ctin1 # $ot o% %orei1n /hoe br#nd/ to open /tore/ in Indi#- Recent$(0 C$#r2/
opened it/ e7c$u/i6e /hoe /tore in Indi# #nd other br#nd/ /uch #/ Lotto0 "#rco Ricci0 4#$i/
#nd Tomm( Hi$%i1er h#6e #chie6ed out/t#ndin1 per%orm#nce- "o/t intern#tion#$ /hoe br#nd/
enter Indi#n m#r2et throu1h di%%erent ret#i$ ch#nne$/ 0inc$udin1 e7c$u/i6e /tore/ #nd /tore/
de#$in1 in mu$tip$e br#nd/- Indi#n hi1h <u#$it( /hoe m#r2et promi/e/ 1re#t potenti#$- Indi#
h#/ # popu$#tion o% one bi$$ion- I% e6er( Indi#n bu(/ # p#ir o% R/- *;;; /hoe/0 thi/ m#2e/ #
hu1e m#r2et- Sport/ /hoe m#r2et i/ #$/o e7periencin1 # boomin1 1ro&th- "#n( intern#tion#$
br#nd/ /uch #/ Action0 Adid#/ #nd Ni2e #re p$#nnin1 to e7p#nd m#r2et in Indi#- Ho$din1
EFDm#r2et /h#re in Indi#n hi1h!end /port/ /hoe m#r2et0 Adid#/ #$re#d( h#/ #bout G; /tore/
there #nd i/ p$#nnin1 to open # ne& /tore e6er( &ee2 to %u$$( co6er $#r1e #nd /m#$$ citie/ in
Indi#- The/e ne& /tore/ #re mo/t$( %r#nchi/ed /tore/- Indi# i/ one o% their $#r1e/t #nd %#/te/t!
1ro&in1 m#r2et/0 #nd it i/ no prob$em /o$icitin1 %r#nchi/ed oper#tor/ there- The on$( prob$em
i/ th#t there #re too m#n( c#ndid#te/ %or them to /e$ect-
TECHNOLOGY
&i'e Air is the most basic cushionin* material used by &i'eE it is made out
of a #olyurethane bladder 6lled )ith air+ It #ro%ides ade2uate cushionin*
for the casual )earer, but may not #ro%ide suJcient or #ro#er cushionin*
for serious athletes )ith indi%idual #references+
Adi#reneI A neo#rene-li'e material that feels some)hat li'e Wa soft #illo)W,
it is most often used in the heel of a shoe+ adi"/&/ is 2uite durable, and
is meant to res#ond to the cushionin* needs of acti%e feet+ 0ue to )hich
the comfort of the shoe increases, )hile runnin* it also #ro%ide *ri# )hich
hel#s athletes in there races+
MAR!ET SEGMENTS
BA;;S
>-KKTBA;;S, "B.BN BA;;S , LK;;/NBA;;S ,BASC/TBA;;S, .K;- BA;;SA
S1K/S
P/"S/NS
>-KKTBA;;, BASC/TBA;;, 1K,C/N, T"A,C A&0 -I/;0 , "B.BN, .K;- A
S1K"TS
SK,CS
A,,/SSK"I/S -
>,AS
BA&0S
BA.S
SB&.;ASS/SA
ARC RI-ALS *NI!E 0 ADIDAS,
&IC/ MAMIM-
/asy-to-s#ot ball for #remier #lay+ Made )ith durable materials and
contrast #anels that stand out durin* #lay, the &i'e Ma4im ; 1i-Lis
Soccer Ball retains its sha#e and is easy to see+ ,KL/"I Micro-te4tured
casin* im#ro%es ball control by e2uali5in* air:o) across surface+
,om#ressed B co%er stores ener*y from im#act and releases it at launch+
,ross-lin'ed nitro*en-e4#anded foam for e4ce#tional sha#e retention+
olyester su##ort fabric+ .eometric #recision desi*n distributes #ressure
e%enly for consistency, accuracy and #o)er+ B;A00/"I Si4-)in* carbon
late4 for e4#losi%e s#eed+ -I-A a##ro%ed+?0Z15Z13Z12
rubberZ#olyurethaneZ#olyester+ All of our balls are shi##ed de:ated+ This
hel#s in 'ee#in* our shi##in* costs lo), sa%in*s that )e can #ass on to
you+ Standard Ball Si5in* Si5e 5I a*es 12 and u# Si5e HI a*es 9-12Si5e 3I
a*es 9 and under Si5e 1I s'illsZ#ractice
A0I0AS TA&.K-
The Adidas Tan*o 12 is the oJcial match #//oci#tion %ootb#$$ of the UEFA Euro
C;*C+
>*?
The ball is named for the ori*inal and successful Adid#/ T#n1o family
of footballs, but the Tan*o 12 and its %ariations ha%e a com#letely ne)
desi*n+ Lariations of the ball ha%e been used in other contem#orary
com#etitions includin* the African ,u# of &ations and the Summer
Klym#ics O adidas has not cate*orised these football as the WAdidas Tan*o
12W family, ho)e%er they are listed here due to their similar desi*n+
Ni2e an' A'i'a& S1oe&
NIKE MAESTRI ( )
;i*ht)ei*ht ,omfort The &i'e ,T"3?0 Maestri III cleat oFers a comfortable
6t in a li*ht)ei*ht #ac'a*e+ The /LA soc' liner has K"K& ` inserts for
added cushionin* and reduced cleat #ressure, )hile minimal stitchin* in
the forefoot reduces irritation )ithout sacri6cin* loc'do)n+
More Bene6ts ;o)-#ro6le, su#er-durable #late for res#onsi%e su##ort and
durability TB cleat islands for e4tra durability and im#act #rotection in
hi*h-)ear 5ones Te4tured forefoot and mid foot for enhanced friction and
control Asymmetrical lacin* system for e4#anded ball control surface
B##er material sits close to the foot for natural touch and 6t
ADIDAS PREDATOR L* )
;i'e a laser si*ht for your foot, these men3s adidas redator ;a T"M -.
cleats blend 6%e 5ones of #redator` technolo*y )ith an ultra-li*ht, ultra-
soft u##er for #in#oint accuracy on the soccer #itch+ Mi ,oach`
com#atibility lets you trac' your #erformance+
#redator` technolo*y *i%es you 6%e lethal 5ones to control the ball )ith
e%ery touch
&e) synthetic su#er-soft u##er oFers bene6ts of both leather and
synthetic materials
re-molded /LA soc' liner )ith anti-sli# /LA inserts on the bac'
&ubuc' touch heel linin*E mi ,oach` com#atible
S"I&T-"AM/ construction uses *eometrical research for the #erfect
balance bet)een li*ht )ei*ht and stability
T"AMIK&b 2+0 -. stud con6*uration for ma4imum *ri# and acceleration
on 6rm natural #itches
NIKE VAPOR +,
S#eed has a ne) ally+ The most e4#losi%e boot in the *ame is bac' )ith an
e4tra ed*e+
The boot features All ,onditions ,ontrol >A,,A, the industryQs 6rst
technolo*y to oFer o#timal ball control in any condition+ It ensures the
surface of the Mercurial La#or LIIIQs u##er deli%ers consistent friction
bet)een boot and ball in )et conditions, so you 'ee# the ball under
control at the hi*hest s#eeds+
ADIDAS AD*ERO,
,omfort and su##ort features include A0I"/&/`c in the forefoot to
maintain eJciency and #ro#ulsion, and the /MT/&0/0 TK"SIK&`
SNST/M for foot inte*rity+
Gei*htI 8+H o5+ >si5e <A
Air mesh u##er for ma4imum breathabilityE /n%ironmentally res#onsible,
sol%ent-free synthetic Tirennina suede o%erlays for added su##ortE &on-
sli# ,oole%er linin* for comfort and #erformanceE A0I"/&/`c in the
forefoot maintains #ro#ulsion and eJciency
/MT/&0/0 TK"SIK&` SNST/M for mid foot and forefoot inte*rity
Molded res#onsi%e /LA soc'liner for anatomical 6t and *reat ste#-in
comfort
A0I"/&/` under the heel for su#erior cushionin* at im#act
Xuic' stri'e outsole decreases )ei*ht and increases :e4ibility and
durabilityE ,ontinentalb rubber outsole for surefooted *ri#
NIKE FLYKNIT,
After years of research, the )orldQs best runners told us )hat they )ere
cra%in*I a snu* and a*ile shoe that 6ts li'e a soc' and is as li*ht as a
feather+ Ge embar'ed on a four-year mission )ith a team of #ro*rammers,
en*ineers and desi*ners to create the #erfect technolo*y+ And &i'e -ly'nit
)as born+
ADIDAS PRIMEKNIT,
It has !ust ta'en the )ra#s oF the ne4t *eneration of Prime2nitI the adidas
rime'nit 2+0+ Than's to im#ro%ements in the 'nit manufacturin* #rocess,
the rime'nit 2+0 boasts a minimal, sin*le-layer u##er that reduces )ei*ht
and )aste+ The u##er features a uni2ue $di*ital burst( #attern across the
u##er d a subtle nod to the di*ital data #ro*rammed into the 'nit
machines to create the u##ers+ More #erformance-focused than similar
oFers from its com#etitors, the adidas rime'nit 2+0 features reinforced
#anels at the toe and heel for increased abrasion resistance, and sits ato#
the sole unit from the adidas adi5ero Adios 2 d currently the fastest
marathon shoe in com#etition+
NI!E AND ADIDAS JERSEYS
Gater-re#ellin* fabric
/mbroidered T)ill &umbers
-ly)ire stren*th resists stretch at the nec'+
Tailored 6t desi*ned for mo%ement
Strate*ic %entilation o%er ma!or heat 5ones
1i*hly :e4ible embroidered #remium t)ill numbers
&o-ta* nec' label for clean comfort
1and crafted inside and out for lastin*, #remium comfort
Pr&"e -.(/0

Lentilated climacool` 'ee#s you cool and dry
"ibbed L-nec' )ith stri#e
Mesh %entilation insertsE "ibbed cuFs )ith stri#e
,helsea -ootball ,lub )o%en bad*e on left chest
/mbroidered detailsE "e*ular 6t
100@ #olyester en*ineered
Im#orted
NIKE AND ADIDAS ACCESSORIES
8#e&tionnaire&

Inter%ie)s >formal 7 informalA
,KM/TITIL/ A&A;NSIS

MA"C/TI&. 7 A0L/"TISI&. AS/,TS
MA"C/TI&. ST"AT/.I/SI A& KL/"LI/G K- A0I0AS
Mar'et research is a method of collectin* data )hich )ill ma'e you >as a
businessAmore a)are of ho) the #eo#le, you ho#e to sell to, )ill react to
your #roducts or ser%ices+ Mar'et research )ill ans)er 2uestions li'eI

Ghether your #roducts or ser%ices are needed

Gho mi*ht )ant to buy your #roducts

Ghat a*e, se4, income occu#ation etc+ are the #eo#le I )ant to sell to+

If there are chan*es ta'in* #lace and ho) this mi*ht aFect )hat you sell

1o) )ell your #roducts or ser%ices mi*ht sell

1o) much demand there is for )hat you ho#e to sell

Ghat #rice )ould #eo#le be #re#ared to #ay
,onductin* mar'et research
There are number of )ays in )hich you can carry out your research
but you need to carefully consider )hy you made this choice and )hat
you ho#e the e%idence )ill su**est to you+ Xuestionnaires and #ersonal
inter%ie)s are one of the most common )ays in )hich you can conduct
mar'et research, and there are many methods of *atherin* data this )ayI
0irect Inter%ie), Mail Sur%ey and Tele#hone inter%ie)+ 0e#endin* on the
ty#e of data you ho#e to collect )ill ha%e an im#act on )hat you choose
to use+ I ha%e made use of t)o ty#e of sur%ey methods, 2uestionnaire and
mail sur%ey+ I ha%e as'ed some 2uestion about the com#any my mail and
also by direct contacts+ The Xuestion I ha%e
as'ed are *i%en in $2uestionnaire #art( belo)