LIVE PROJECT REPORT A Study of Promotional Activities of ‘Adidas’ Brand of Sports Shoes in Pune, India Submitted By: Zainul Abedeen Lamak MBA 1: Media and Communication (Semester 1) Submitted To: Dr. Makrand Joshi (Professor – Marketing Management) Ajeenkya DY Patil University, Pune
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LIVE PROJECT REPORT
A Study of Promotional Activities of
‘Adidas’ Brand of Sports Shoes in
Pune, India
Submitted By:
Zainul Abedeen Lamak
MBA 1: Media and Communication
(Semester 1)
Submitted To:
Dr. Makrand Joshi
(Professor – Marketing Management)
Ajeenkya DY Patil University, Pune
LIVE PROJECT EVALUATION
Class of MBA-I (MAC) 2016-18
Name Of the Student: ______________________________________________________________
Live Project Report Evaluation Weightage – 10%
Sl. No
Component Max Marks Marks
Awarded
1 Understanding of the Objective of the Live Project 5
2 Identification of relevant Live Project concepts and context and their application.
15
3 Awareness developed about Marketing as a Function 5
4 Skill developed to handle Marketing Projects 15
5 Overall quality and effectiveness of the project report 10
Total (Report) 50
Live Project Presentation Weightage: 10%
Sl. No
Component Max Marks Marks
Awarded
1 Presentation Structure, Logical sequence and Time management
5
2 Quality of Power Point Slides and Elaboration of content 10
3 Language, Appropriate vocabulary, Grammar; body language and confidence
10
4 Elucidation of facts/ observations and their relation to the application of Marketing Concepts
15
5 Handling Question and Answers 10
Total (Presentation) 50
Name & Signature of the Domain Faculty Member Signature of Student
Date:
DECLARATION
I, Zainul Abedeen Lamak, hereby declare that the project report on „ A
study of promotional activities of sports shoes carried out by Adidas
in Pune‟ is a genuine research work undertaken by me.
All care has been taken to keep this report error free and I sincerely
regret for any unintended discrepancies that might have crept into th is
report. I shall be highly obliged if errors (if any) be brought to my
attention.
Signature
Name: Zainul Abedeen Lamak
Date: 11th
November 2016
Place: Pune, Maharastra
ACKNOWLEDGEMENT
A work is never a work of an individual. I owe a sense of gratitude to
the intelligence and co-operation of those people who have been so
easy to let me understand what I needed from time to time for
completion of this project.
I want to express my gratitude towards Dr. Makrand Joshi (Professor –
Marketing Management, Ajeenkya D Y Patil Universi ty) for guiding
me through the project.
Lastly, I would like to forward my gratitude to Mr. Dilshad Nawaz
(Owner- Adidas franchise, Nagpur) and Mr. Ashok Rane (Manager –
Adidas Outlet, JM road, Pune) for informational support.
TABLE OF CONTENT
Serial Content
Chapter 1. Introduction
A. Historical Background,
Introduction and Growth of
Industry B. Conceptual Framework C. Parameters of Study D. Significance of Study E. Reason For Selecting the Topic F. Limitation of the Study
Chapter 2 Company Profile
Chapter 3. Methodology
A. Objective of Study B. Research Methodology
Chapter 4. Facts and Observations
Chapter 5. Conclusions and
Suggestions
Bibliography
Annexures
Chapter 1. Introduction
This project is prepared to study the different types of promotional
activities performed by Adidas to promote their sport shoes in the city
and understand who their customers, their likes and preferences are, so
the promotions are effective.
1.1 Historical Background, Introduction and Growth o f
Industry
India‟s sportswear market has evo lved from a niche segment , which was
exclusively aimed at sportspersons, to a burgeoning consumer sector. The
industry has witnessed rapid growth over the past fe w years, dr iven by growth in
income levels, chang ing lifestyles and the entry o f foreign p layers after
liberalizat ion.
The ever- increasing popular it y o f cr icket , combined with the growing interest in
sports such as football, hockey and tennis, has contribu ted to the growth o f the
funct ional sportswear market in the country.
In addit ion to this, the t rend of using sportswear as casual wear has expanded
the definit ion o f target consumers for leading brands. Some brands also offer
co llect ions to cater to this demand for casual wear.
1.1.1 Market Overview
The sportswear retail market in India is est imated at INR365.8 billion and is
expected to grow at a robust 33% by 2018. The market includes sports apparel,
footwear and accessor ies, with footwear being the largest segment , account ing
for around 60% of the total market .
Indian Sports Industry is worth $1.18 Billion.
Sportswear Segment is dominated by Men‟s Category .
Sport Shoes amount to 60% of the total sport product market of Ind ia.
The Footwear market of I ndia is expected to r ise to $1.3 Bil l ion in 2017
from $0.85 Bi l lion in 2015.
70%
30%
Market Share
Men's Sportswear
Women'sSports wear
60% 25%
15%
Sales
Shoes
Apparels
Others
0.31 0.4 0.56
0.85
1.3
0
0.5
1
1.5
2009 2011 2013 2015 2017
Indian Footwear Market
Figure 1.1 Figure 1.2
Figure 1.3
1.1.2 Key Drivers
The Indian sportswear market is po ised for st rong growth over the next few
years. Several factors, including a booming middle -class populat ion, a paradigm
shift in consumers‟ at t itude to health and fit ness, an increas e in the number o f
sports events and the growth of organized retail are dr iving this market .
Recent changes in government regulat ions on FDI in retail, passed by the Unio n
Cabinet , are expected to give a further impetus to the organized sportswear
market . The Government has increased FDI in sing le -brand retail from 51% to
100% with condit ions largely around domest ic sourcing
1.1.3 Key Challenges
A. Counterfeiting
Counterfeit ing is one of the biggest challenges sportswear brands are facing in
India today. Unorganized players imitate product styles, brand logos and names,
which adverse ly impacts the brand equity and sales brands.
B. Low participation in sports
Although there is high viewership of sports (part icular ly cr icket) in India,
part icipat ion cont inues to be low, with only an est imated 1% of the populat ion
engaging in sport ing act ivit ies. Therefore, in line with this market realit y,
several sports brands have posit ioned themselves as lifestyle instead o f fit ness
brands.
Awareness of
Health and Fitness
Growing Middle
Class Population
Increase in Sporting
Events
Growth in
Organized Retail
C. Rising costs
In the Union Budget 2011, the Government revised opt ional excise duty for
readymade garments and made-up text iles, and levied a 10% mandatory excise
tax on all branded apparel manufacturers. As a result , branded garments,
inc luding sportswear apparel, are likely to witness a pr ice increase o f 5%–10%.
D. Unorganized market
P layers face major compet it ion from unorganized players that const itute around
~70% of the overall sportswear market , since the lat ter have a significant
advantage over their organized counterpar ts in pr ic ing
1.1.4 Emerging Trends
A. Online shopping
Increas ing penetrat ion o f the internet in India is fueling the growth of online
shopping. Brands such as Reebok (www.shop4reebok.com) and Lot to
(shop. in. lot tosport.com) have init iated their online shops in India. Companies
such as Puma and Nike have partnered with online retailers such as Myntra and
Amazon to expand their dist r ibut ion beyond convent ional mult i -brand out lets
and large retailers.
B. Sports merchandising
Sports merchandising is an emerging concept in India. Brands have successfully
tapped the market by associat ing themselves with popular sports such as cr icket ,
and using popular sportspersons as their brand ambassadors for clothes, shoes
and other products. Moreover, with the debut of new sports such a s Formula 1
(F1), brands such as Puma have begun stocking co llect ions inspired by F1
racing.
Nike, the o fficial apparel sponsor of the Indian Nat ional Cr icket Team since
2005, has extended it s contract with the Board of Control for Cr icket in India
(BCCI) for a per iod of five years.
C. Product innovation
The sportswear industry has been witnessing significant innovat ion in the
premium as well as the mass segment . Brands such as Reebok have introduced
new products such as “Easytone” and “Zigtech,” and Nike the “DriFIT” appare l
techno logy.
D. Lifestyle positioning
The sports lifestyle business has been growing at 30% –40% per annum. Players
are increasing ly posit ioning their sportswear brands as lifestyle products by
co llaborat ing with well-known designers such as Manish Malhotra, Shantanu,
Nikhil and Aki Narula. Other apparel retailers such as S Kumars Nat ionwide and
Reliance Retail have also forayed into the lifestyle sportswear market .
E. Targeting hot spots of consumption
Having covered large cit ies, sportswear brands are now trying to ramp up their
presence in t ier -II and t ier-III cit ies. Companies are using a reduced pr ic ing and
localizat ion st rategy to drive sales in these cit ies.
1.1.5 Future Outlook
Today, India has become a st rategic market and offers st rong growth
opportunit ies to sportswear brands. Several o f them are t rying to st rengthen
their presence in the country by expanding their retail footpr int and dr iving
their vo lume growth. Furthermore, the recent regulatory changes made in FDI in
single brands are expected to give a further impetus to sportswear brands.
1.2 Conceptual Framework
A. Promotional activities:
Promotion is the process of communication from the company to the customers.
B. Segmentation:
Segmentation is dividing the market by grouping customers with similar tastes and
preferences into one segment.
C. Product Life Cycle:
A new product progresses through a sequence of stages from introduction to growth,
maturity, and decline. This sequence is known as the product life cycle and is associated with
changes in the marketing situation, thus impacting the marketing strategy and the marketing
mix.
1.3 Parameters of Study
The research was conducted on the following parameters:
A. Study of the promotion tools :
a. Advert is ing
b. Celebr it y Endorsements (Promotion)
c. Public it y
d. Dig ital Market ing
e. Sales Promotion
f. Fairs and Exhibit ion
B. Targeted audience of the promot ional act ivit ies .
C. Product life cycle stage study o f different sport shoes .
1.4 Significance of Study
A. This study played significant role in my understanding o f the methods o f
promotions by a sport shoe manufactur ing company .
B. This study can prove important for Adidas to ident ify t heir customers in
the cit y o f Pune and note addit iona l promot ions required to place their
product better .
C. This study can help general consumers understand sport shoes posit ioning.
1.5 Reason for choosing the topic
The reason for me choosing this topic is the keen interest I have in the product
and the love for the brand
1.6 Limitations of the study
A. In some o f the showrooms it was not allowed to get the quest ionnaire
filled
B. Some respondents did not show interest in filling the form
C. Some people whom I faced hesitated to give their opinion freely
Chapter 2. Company Profile
2.1 Adidas – Impossible is nothing
Adidas is a German mult inat ional corporat ion that
designs and manufactures sports shoes, clothing and
accessor ies headquartered in Herzogenaurach, Bavar ia. It is the largest
sportswear manufacturer in Europe and the second biggest in the wor ld .
The brands o f the Adidas Group complement each other in a unique way to help
athletes perform bet ter, play bet ter, feel better. Their products break records, set
t rends and make history. Every day. All over the wor ld.
The consumer‟s brand love is based o n their employee‟s extraordinary passio n
for a sport ing lifestyle. With dedicat ion, commitment and team spir it , Adidas
cont inuously innovates to establish new benchmarks in everything they do.
Shaping the sport ing goods industry sustainably is more than a job. It ‟s an
impulse, an at t itude that is t ruly dear to the hearts and that dr ives the company .
“ We are laser-focused on our mission: we strive to be
the best sports company in the world, with brands built
on a passion for sports and a sporting lifestyle! “
HERBERT HAINER, CEO OF THE ADIDAS GROUP
2.2 Brand value and strategy of Adidas
Adidas employs more than 55,555 people in over 160 countries , and produce
more than778 million product units every year to generate sales o f € 16.92
billion.
The new Adidas logo, three st r ipes running across it s several products, was
introduced in 1991.
It is the ho lding company for the Adidas Group, which consists o f:
A. Reebok Sportswear :
In 2005 Adidas owned Reebok for $3.8 million do llars.
In 2007, Adidas reposit ioned Reebok to att ract the consumers o f athlet ics
apparel. Moreover, the company adopted several plans to expand its brand name
as Adidas has given a lot of emphasis on advert ising.
Adidas has int roduced several market campaigning ideas, for example, the „Run
Easy‟ campaign for Reebok.
B. Taylor Made-Adidas Golf:
TaylorMade-Adidas Go lf Company (TMaG or TMaGC) is a manufacturer
of go lf clubs, bags shoes and accessor ies based in Car lsbad, California, Unit ed
States. It is a subsidiar y o f t he German company Adidas Group. The company is
current ly the largest go lf equ ipment and Apparel Company in t he wor ld wit h
sales est imated EUR $1.3 billion in 2012.
Tailor-mades‟ init ial success came with the innovat ion o f metal dr ivers, which
debuted in 1979 and have subsequent ly dominated the go lf market . Taylor Made
cont inued to grow throughout the 1990s, largely due to the introduct ion o f the
successful Burner Bubble franchise. In September 2012, Outside Magazine