Adidas

Case Study On

MNC : Prof . Manoj DasITM, Kharghar, Navi Mumbai , Batch : XIII

Group No. 7 Team Members

1. Kishore Gulhane (KH08JUNMBA074)

2. Tarun Tiwari (KH08JUNMBA107)

3. Tushar Patil (KH08JUNMBA066)

4. Shravan Bhumkar (KH08JUNMBA100)

5. Gaurav Patel (KH08JUNMBA065)

History of adidas

1920 : Adolf Dassler started to produce sports shoe

1972 : Nike shoes appeared in US Olympic games

1949 : Formal registration of adidas AG

1970s : adidas dominated in the Athletic footwear industry

1987 : Death of Horst Dassler

1993 : Robert Louis Deryfus as new CEO of adidas AG

1997 : Acquisition of Salomon AG

2001 : Herbert Heiner as a new CEO of adidas

2005 : Divestiture of Salomon Business Units to Armer Sports Corp.

2006 : Acquisition of Reebok International Ltd

2008 : Acquisition of Ashworth

Adidas FactsPresident & CEO Erich Stamminger

Description

At adidas, our organization is matched to the needs of sport-oriented consumers. Our two-divisional set-up of Sport Performance and Sport Style helps us to develop and market innovative products, to best meet the needs of today’s consumers. Within Sport Performance, clear focus lies on Running, Football, Basketball and other global performance categories. Sport Style, comprised of the previous Sport Heritage and Sport Style divisions, is specifically targeting the lifestyle consumer.

FinancialsAdidas 2008 Net sales: $10 billion

Employees 23,202 at year end 2008

Own retail792 Concept Stores (Sport Performance, Originals Stores) 381 Factory Outlets

Product Segment

Performance OriginalOriginal Life Style(Y3)

Men Footwear (146)Clothing (282)Accessories ( 49)Women Footwear (71)Clothing (193)Accessories ( 64)

Men Footwear (52)Clothing (81)Accessories (16)Women Footwear (47)Clothing (49)Accessories (08)

Men Footwear (24)Clothing (- -)Accessories (- -)Women Footwear (12)Clothing (- -)Accessories (- -)

Number indicates product available in market in particular segment

Case Study Issues

Changing ownership gradually eroded the company’s fortunes.

Lack of global advertisement campaign Less market share in U.S Importance of new ad claiming Adidas’s Heritage Creating 3 new divisions based on products Identifying market for new technology based footwear

Adidas-1

SWOT Analysis Continue…

STRENGTH WEAKNESS

World Wide presence in 200 countries

Long List of Product Line− Football− Running− Basketball etc. Focus on performance

development and Technology development

Sponsorship to various sports and events like Olympics, Streetball, Soccer, Tennis, etc.

Brand reputation in achieving sports performance products

Largest market share in Europe

Limited exposure to U.S market Limited budget allocation to

advertisement Few influential athletes in Brand

Ambassador portfolio Poor Ad agency Poor customer service

SWOT Analysis

OPPORTUNITIES THREATS

Has a great opportunity to expand international market

− Retail outlet− E-commerce Positive and increasing market

trends can increase through the effective advertising (For Technology driven products)

Increase endorsement programs Tie up with local market player to

boost the sale-volume

Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity

The newly born several brands like New Balance, Reebok, CAT, GAP has increase their advertising budget in recent years.

Amount of competitors increasing day by day

Global Economic crisis

Comparative Analysis

Brand Equity Model

Endorsement focus strategy, advertising, sponsorship programs focusing on major global events, sports associations, and teams, and sub-brands.

The platforms, the endorsement focus strategy, creating a dominant media presence, development of Flagship stores, NikeTown and sub branding.

Brand Awareness

Adidas focuses on sponsorship of teams and events e.g. national teams and big sport events like the Olympic Games and different World Championship events.

Nike has their focus on individuals like M. Jordan and Tiger Woods

TV and Media ads with personalities like Mohammad Ali & Emil Zatopek communicating adidas heritage of innovation, technology“We know then- we know now”

Billboards and Murals on building with messages featuring Nike sponsored athletes and not products.

Sports events like streetball challenge in Europe.

Estb. flag ship stores and Nike town shops nationally and abroad.

Brand association

Trendy, modern and cool Sports, attitude and life style

Adidas

Nike

Discussion Continue…

Ads proclaiming Adidas heritage will be effective in building brand in United states ?

Yes It shows brand’s deep historical reservoir of greatness,

inspiration and achievement and rekindle the indominatable spirit of a brand that earned its special place in the world.

It reflects itself as the true, legitimate global sports brand. It creates the attitude of winning in every athletes at every

level. Even if one isn’t a sport fanatic the quality of adidas shoes are

already passable for market. Company not only offer shoes but lifestyle.

It shows depth and breadth of the brand history.

Asses the new “Impossible is nothing” advertising tagline. Do you think this phrase will became part of popular culture the way Nike’s “JUST DO IT” tagline has ?

Yes It creates the attitude that drives all athletes to overcome barriers

and surpass limits. The true athlete is not discouraged by the impossible, but is

drawn to it as a challenge, as a dare. The “impossible” theme tied in with historic adidas moments

involving Muhammad Ali, Jesse Owens and Nadia Comaneci, each of whom managed to do the impossible.

It echoed some of adidas’s own breakthrough accomplishments as a pioneer in athletic equipment.

Discussion Continue…

It also resonated with the hungry spirit of every athlete, poor amateur; every kid on a skateboard trying a move that had never been done.

It challenges everyone to dream about what they would like to achieve and to believe that their dreams can be realized.

-------------------------------- YES, It can be integrated with popular culture like Nike’s “Just

do it” because big success stories with personalities like Emil Zatopek, Mohammad Ali trying to spread that “There is nothing between you and success, so exceed your own expectations and limitations” and “ Earn it”.

» “IMPOSSIBLE IS NOTHING”

Discussion Continue…

Discussion With an initial Price tag of $250,the high-tech Adidas-1 is not

targeted at broad market. What role can the Adidas-1 play in the company’s public relation plan?

To gain even great popularity among athletes and sports teams. Allows adidas to gain greater recognition for technology in sports

to improve athletic performance. The quality or the performance of product must excel in such a

way that public would do away of the amount. A high priced shoe in excellent performance. Let the public view the product Adidas-1 as a Futuristic shoe, this

is the edge.

Adidas-1

Suggestion Create more Endorsement program with professional athletes

for Sports Performance products Aggressive advertisement in USA for Adidas Original and Life

style product Keep building brands equity(buying out companies) Easy availability of products by opening more concept stores Focus marketing efforts at large sporting events on key products Tie up with local manufacturer to get critical information about

foreign market. To design a high quality shoe meant for use by athletes in the

local popular sport Sponsor a premier soccer team for the world cup 2010

Thank You …..