MINOR PROJECT REPORT

ON

MARKET COMPARISION OF NIKE AND ADIDAS

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE

DEGREE OF BACHELOR OF BUSINESS

ADMINISTRATION

UNDER THE GUIDANCE OF

MS. SWATI VERMA, VIPS

SUBMITTED BY:
Ekampreet Singh Saggu
09229801722
2022-2025 (BBA 2E)

Vivekananda School of Business Studies

Vivekananda Institute of Professional Studies
AU Block (Outer Ring Road) Pitampura
Delhi - 110034
 MINOR PROJECT
REPORT ON
MARKET COMPARISION OF
NIKE AND ADIDAS

Submitted By: Ekampreet Singh Saggu

 STUDENT’S DECLARATION

This is to certify that I have completed this Project titled

“MARKET COMPARISION OF NIKE AND ADIDAS” under the
guidance of “SWATI VERMA” in partial fulfillment of the
requirement of the award of degree of Bachelor of
Business Administration at Maharaja Surajmal Institute,
Delhi. This is an original piece of work and I have not
submitted it earlier elsewhere.

Name - Ekampreet Singh Saggu

Enrollment. NO- 09229801722

ii
 CERTIFICATE FROM THE GUIDE

This is to certify that the project titled “MARKET COMPARISION

OF NIKE AND ADIDAS” is an academic work done by “AMIT
KUMAR JAIN” submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelor of
Business Administration from Maharaja Surajmal Institute, C-4,
JANAKPURI, Delhi, under my guidance & direction. To the best
of my knowledge and belief the data & information presented
by him in the project has not been submitted earlier.

SWATI VERMA

signature

iii
 ACKNOWLEDGMENT

With profound sense of gratitude and regard, I convey my

sincere thanks to my guide and mentor, for their valuable
guidance and the confidence they instilled in that helped me in
the successful completion of the project report.

I wish to express my sincere gratitude to my project guide Ms.

SWATI VERMA,

“VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES” under

whose guidance the study was undertaken. Without her
guidance at each stage of the project study, the task could not
have been accomplished. This acknowledgment would be
incomplete without thanking the college faculty who helped me
in all possible ways their whole hearted cooperation. Last but
not the least I am ever grateful to my friends for their help and
support in completing my project.

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 TABLE OF CONTENTS
ii. Acknowledgement

iii. Student’s Declaration

iv. Certificate from the guide

1. Introduction
a. Company profile

2. Marketing & advertising Strategies

Competitive Analysis

3. SWOT Analysis

4. Data Interpretation & Analysis

Research Methodology

5. CHAPTER -4 Conclusions & Suggestions

Findings
Limitations
Suggestions
Conclusion

6. Bibliography
7. Annexure
 INTRODUCTION
INDUSTRY OVERVIEW
Indian leather industry is the core strength of the Indian footwear industry. It is the
engine of growth for the entire Indian leather industry and India is the second largest
global producer of footwear after China.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike,
Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan
are manufactured under license in India. Besides, many global retail chains seeking
quality products at competitive prices are actively sourcing footwear from India.

The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped with
In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe
Design packages that are intuitive and easy to use. Many Indian footwear factories
have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications.
Excellent facilities for Physical and Chemical testing exist with the laboratories having
tie-ups with leading international agencies like SATRA, UK and PFI, Germany.

One of the major factors for success in niche international fashion markets is the ability
to cater them with the latest designs, and in accordance with the latest trends. India, has
gained international prominence in the area of Colours & Leather Texture forecasting
through its outstanding success in Europe. Design and Retail information is regularly
made available to footwear manufacturers to help them suitably address the season's
requirement.

The Indian Footwear Industry is gearing up to leverage its strengths towards

maximizing benefits.

Strength of India in the footwear sector originates from its command on reliable supply
of resources in the form of raw hides and skins, quality finished leather, large installed
capacities for production of finished leather & footwear, large human capital with
expertise and technology base, skilled manpower and relatively low cost labor, proven
strength to produce footwear for global brand leaders and acquired technology
competence, particularly for mid and high priced footwear segments. Resource
strength of India in the form of materials and skilled manpower is a comparative
advantage for the country.

The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that
footwear sector is the most significant segment of the Leather Industry in India.

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India has emerged in recent years as a relatively sophisticated low to medium cost
supplier to world markets –The leather industry in India has been targeted by the
Central Government as an engine for economic growth. Progressively, the Government
has prodded and legislated a reluctant industry to modernise. India was noted as a
supplier of rawhides and skins semi processed leather and some shoes.

In the 1970‟s, the Government initially banned the export of raw hides and skins,
followed this by limiting, then stopping the export of semi processed leather and
encouraging local tanneries to manufacture finished leather themselves. Despite
protestations from the industrialists, this has resulted in a marked improvement in the
shoe manufacturing industry. India is now a major supplier of leather footwear to
world markets and has the potential to rival China in the future (60% of Chinese
exports are synthetic shoes).

India is often referred to as the sleeping giant in footwear terms. It has an installed
capacity of 1,800 million pairs, second only to China. The bulk of production is in
men‟s leather shoes and leather uppers for both men and ladies. It has over 100 fully
mechanised, modern shoe making plants, as good as anywhere in the world (including
Europe). It makes for some upmarket brands including Florsheim (US), Lloyd
(Germany), Clarks (UK), Marks and Spencer (UK).

India has had mixed fortunes in its recent export performance. In 2000, exports of
shoes were US$ 651 million; in 2001 these increased to 663 million but declined in
2002 to 623 million dollars.

The main markets for Indian leather shoes are UK and USA, which between them take
about 55% of total exports.

India has not yet reached its full potential in terms of a world supplier. This is due
mainly to local cow leather that although plentiful, has a maximum thickness of
1.4 – 1.6mm, and the socio / political / infrastructure of the country. However, India is
an excellent supplier of leather uppers. Importation of uppers from India does not
infringe FTA with Europe or the USA.

The potential is set to change albeit slowly, but with a population rivalling China for
size, there is no doubt the tussle for world domination in footwear supply is between
these two countries.

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 Few Interesting Facts:
 The Indian footwear retail market is expected to grow at a CAGR of over 20% for the
period spanning from 2012 to 2015.
 Footwear is expected to comprise about 60% of the total leather exports by 2015 from
over 38% in 2008-09.
 Presently, the Indian footwear market is dominated by Men's footwear market that
accounts for nearly 58% of the total Indian footwear retail market.
 By products, the Indian footwear market is dominated by casual footwear market that
makes up for nearly two-third of the total footwear retail market.
 As footwear retailing in India remain focused on men's shoes, there exists a plethora of
opportunities in the exclusive ladies' and kids' footwear segment with no organized
retailing chain having a national presence in either of these categories.
 The Indian footwear market scores over other footwear markets as it gives benefits like
low cost of production, abundant raw material, and has huge consumption market.

COMPANY PROFILE
ADIDAS
In the small German village of Herzogenaurach the world began its love affair with
Adidas (Ryno‟s Company History). In 1920, Adolf “Adi” Dassler brought to life those
three little stripes. With his brother, Rudolph, Dassler manufactured his first sports
shoe, made for training, after realizing the need for performance athletic shoes. In1948,
the Dassler brothers separated to form their own two separate companies. Dassler
formed Adidas and his brother formed Puma, both headquarters in Herzogenaurach.

The Adidas mission has changed little since founder Adi Dassler began making sports
shoes in the 1920s: to be the best sports brand in the world. The history of Adidas is
one of consistently meeting the evolving needs of the athlete. Focusing more on
function and less on fashion, Adidas strives to provide athletes with shoes that can
make a noticeable difference in their performance. Meeting athlete needs is what
makes Adidas the best. Adidas America has continued to build on this history.

In February of 1993, Adidas acquired Sports Inc., a US-based sports marketing

company founded by former Nike executives Rob Strasser and Peter Moore. Sports
Inc. had been working in conjunction with Adidas USA on the design, development,
and marketing of the Adidas Equipment line. This line helped

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rejuvenate and reposition the Adidas brand in the United States by creating an
exclusive line focused on fulfilling the functional needs of the athlete and by utilizing
the best materials and athlete input in the tradition of

Adi Dassler. It offered moisture management, thermal insulation, weather protection,

ease of movement, and safety, helping the athlete to perform more efficiently. After the
successful creation and launch of Adidas America

General Information
For over 83 years Adidas has been part of the world of sports on every level, delivering
state-of-the-art sports footwear, apparel and accessories. Today, with total net sales of
6.1 billion and net income of 208 million, Adidas - Salomon is a global leader in the
sporting goods industry and offers the broadest portfolio of products. Adidas-Salomon
products are available in virtually every country of the world. Our strategy is simple:
continuously strengthen our brands and products to improve our competitive position
and financial performance.

The company's share of the world market for sporting goods is estimated at around
15%.

Activities of the company and its approximately 100 subsidiaries are directed from
Adidas-Salomon AG's headquarters in Herzogenaurach, Germany. Also located in
Herzogenaurach are the strategic business units for Running, Soccer and Tennis as
well as the Research and Development Centre. Additional key corporate units are
based in Portland, Oregon in the USA, the domicile of Adidas America Inc. and home
to the strategic business units Basketball, Adventure and Alternative Sports. The
strategic business unit Golf is based in California. The business unit Winter Sports is in
Annecy, France. The company also operates design studios and development
departments at other locations around the world, corresponding to the related business
activity. Adidas-Salomon AG has approximately 13,400 employees worldwide.

Turnover and Brand Image

The turnover of Adidas Company has grown to 16 Million US dollar in 2007-08.

Almost 53% of the turnover is from sale of apparel and accessories with the rest
from footwear.
The Adidas brand is one of the most popular brands as determined by a within
brand survey of sportswear brands in the year 2008.

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Future Plans
TURNOVER IS EXPECTED TO RISE TO 18 MILLION US DOLLAR FOR ADIDAS
INDIA IN 20012-013 CASH BREAK-EVEN IS FORECAST DURING CALENDAR
YEAR 20012 AND AN OPERATING BREAK EVEN DURING 2013. THE OTHER
ADIDAS – OWNED BRANDS, SALOMON & TAYLOR MADE ARE EXPECTED TO
HIT INDIAN ADIDAS STORES DURING 2012 AND 2013.

NIKE: COMPANY PROFILE

Nike produces 90 million pairs of sports shoes every year. In 1998, revenue increased
by 4% to record $9.6billion, after revenue increase of 42% and 36% respectively in the
two preceding years. Nike is still the number one produces of sports shoes, with
Adidas close behind. Nike is not only the biggest producer of sports shoes, but also
spends the largest amount of money on advertising and promotion. In 1998 the
company spent $1.13 billion for this purpose. Famous sportsman such as Michael
Jordan, Andrew Ages and Tiger woods‟ have their names linked with NIKE products
and received, respectively $45 million, $10 million and $28 million in endorsements in
1998. The company designs and products shoes for just about every sport. Nike‟s
presence in soccer (being the world‟s biggest sports) became stronger after entering
into new partnerships with top European club teams such as FC Barcelona and AC
Milan. At the 1998 world cup, six teams (Brazil, Holland, Italy, Nigeria, South Korea
and the US of A) competed in the kits designed by Nike. In November 1999 Nike
negotiated new contract with the Dutch sauces association KNVB, and the Dutch team
will be playing with the swoosh on their shirts until 2009, for about 10 million guilders
a years.

Ever since the day 1971 when university of Oregon track coach Bill Bower man
poured rubber into his wife‟s waffle iron, technological innovation has been the
driving force behind Nike‟s success. Coach Bower man figured that every ounce he
shaved of a miler‟s shoe would result in 200 fewer pounds lifted over the distance. His
lightweight waffle sole become the foundation of Nike and revolutionized and entire
industry.
Bower man‟s waffle sole set the stage for an unrivalled tradition of innovation.

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THE MANUFACTURING PRACTICES OF THE FOOTWEAR
INDUSTRY: NIKE VS. ADIDAS
Steven Van Dusen
The current manufacturing practices of the sneaker industry, in particular companies
such as Nike, Reebok, Adidas, Converse, and New Balance, takes place throughout the
globe. With the industry experiencing severe competition, and the product requiring
intensive labor, firms are facing extreme pressure to increase their profit margins
through their sourcing practices. The following paper will analyze the sneaker
industry, while examining the multitude of viable manufacturing options, and
critiquing their current manufacturing structure.

Footwear Industry – Players, Revenues, Market Share

To properly review the manufacturing in the footwear industry, it is necessary to first
gain an understanding of the dominant leaders in the marketplace. The industry is
currently experiencing hyper-competition, led by six main firms – Nike, Reebok,
Adidas, Fila, Converse, and New Balance (see exhibit 1), with nearly $7 billion in
revenues domestically. Nike is the industry leader, with a 47% market share, followed
by Reebok, a distant second at 16%, and Adidas at 6% (see exhibit 2). This category is
facing decreasing demand and the rising popularity of alternative footwear, resulting in
more pressure than ever before to achieve high gross margins through effective global
sourcing practices.
Footwear companies have two basic options in the manufacturing of their products,
they can both own and operate the factories that produce their products, or subcontract
their products out to secondary manufacturers. These facilities can be located either
domestically or internationally, and both present a myriad of positives and negatives.
Firms that produce domestically benefit from ease of monitoring, skilled workforce,
government stability, job creation, and well understood labor rules, while suffering
from the relatively high wages required in the U.S. as compared to developing
countries. By manufacturing products overseas, in particular in third world economies,
tremendous efficiencies are gained in the form of reduced wages, but are countered by
the increased difficulty of monitoring the quality of their products and the actual
working conditions in the factories. Companies that are vertically integrated, who own
and operate the factories where their products are manufactured, are faced with large
capital expenditure requirements and the management of the factories themselves,
resulting in lower profit margins.

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The Evolution of Manufacturing in Third World Countries
As the economies of countries around world expand, so does their ability and skill
level in all facets of manufacturing. Beginning in London in the early 1900‟s, and
followed through to the present day, manufacturing in its simplest form consists of
light manufacturing, which uses unskilled labour to produce items such as shirts,
shorts, and jeans.
As the economy develops along with the skill of manufacturing, countries begin
moderately technical light manufacturing, which includes footwear, outerwear and,
performance sportswear.
The next step in this growth involves the production of technical consumer products
such as radios, calculators, and wristwatches. With the most developed economies
gaining high levels of technical expertise, manufacturing grows to include technical
durables, which includes automobiles and computers.
This progression represents the advancement of economies throughout the world
today, and provides the reasoning behind sneaker companies manufacturing beginning
in the United States and Germany, and passing through Japan, Korea, and Taiwan, to
its present day central areas of China, Indonesia, and Vietnam.
As these three countries progress over the next decade, and large amounts of new
capital is pumped into their economies, their standard of living will rise along with
their manufacturing expertise. Companies will be forced to relocate their
manufacturing in countries such as Cambodia, Pakistan, and underdeveloped regions
of Africa in search of lower wages.

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Nike
Nike currently enjoys a 47% market share of the domestic footwear industry, with
sales of $3.77 billion. Nike has been manufacturing throughout the Asian region for
over twenty-five years, and there are over 500,000 people today directly engaged in
the production of their products. They utilize an outsourcing strategy, using only
subcontractors throughout the globe. Their majority of their output today is produced
in factories in China, Indonesia, and Vietnam, but they also have factories in Italy, the
Philippines, Taiwan, and South Korea. These factories are 100% owned by
subcontractors, with the majority of their output consisting solely of Nike products.
However, Nike does employ teams of four expatriates per each of the big three
countries (China, Indonesia, Vietnam), that focus on both quality of product and
quality of working conditions, visiting the factories weekly. They also developed their
code of conduct in 1992 and have implemented it across the globe, as its goal is to set
the standard for subcontractors to follow if they wish to do business with Nike.
However, due to a manufacturing network of this magnitude, they have faced
numerous violations involving factory conditions and human rights issues, which have
been widely publicized.
They have responded to these issues through the Andrew Young report, the
Dartmouth Study, and Ernst & Young‟s continual monitoring, but are still
approximately two years away from completely addressing these problems throughout
the globe.

Adidas
Adidas is currently enjoying the fastest growth of any brand domestically, with a
market share of 6% and revenues of $500 million. They have been shielded from bad
publicity by the two Goliath‟s of the industry, Nike and Reebok, and are reaping the
rewards substantially. They have adjusted their manufacturing strategy, from a vertical
operation in Germany in the 60‟s and 70‟s, to an outsourcing focus today throughout
Asia. Unlike the big two, they do not have a code of conduct, and their factories are
considered to be the worst in the industry. It is just a matter of time before they are
exposed, with an underground swelling of negativity already occurring today. In order
to avoid the negative effects and lost revenues that Nike and Reebok have received,
they need to immediately begin to take a proactive stance in regards to the working
conditions of their factories.

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 RESEARCH OBJECTIVES & METHODOLOGY
RESEARCH OBJECTIVE

 To study the marketing of Adidas and Nike and also about the current condition of
Adidas & Nike in market
 To find out why Adidas and Nike are main competitors.
 To find out that how Adidas hold to the market and what are the areas in which Adidas
can improve.
 The various aspects related to the marketing strategy of Adidas and to make
further suggestions for its improvement.
 A study to provide insight into the benefits of marketing techniques adopted by
companies and its effectiveness in the footwear industry.
 To study the footwear industry in India with reference to Adidas and Nike shoes.
 To get the customer, dealer and retailers perceptions
 To know the Industry‟s internal and external environment by knowing Strength,
Weaknesses, Opportunities and Treats.
 To analyse the current scenario to find out the future prospect of casual shoes
market.
 Space planning solutions to optimize sales, margins and consumer loyalty

METHODOLOGY

DATA COLLECTION METHODS:

The sample size taken was 100 consumers
Sample unit – Shoes Company (Adidas Shoes, Reebok, Bata, Adidas and Nike) The

Area chosen was Delhi.

The data was collected by means of

a) Questionnaires
b) Interviews (formal & informal)

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 QUESTIONNAIRES
Questionnaire prepared was open ended, structured, and disguised.

The Questionnaire was designed in such a way that it catered to every aspect of the
research objective. It was disguised as the consumer was kept unaware of the product
for which the research was being conducted.

Before filling up the Questionnaire, it was thoroughly discussed with them and their
views were noted down in the form of facts (answers) in the Questionnaire.

INTERVIEWS
Interviews just like informal discussions were pre-planned. Infact interviews only led
to informal discussions. Interviews were formal and in some cases, this was the initial
step which led to second & third meeting with the interviewee and they were able to
part with the information freely and informally with the researcher.

Interviews were pre-planned (after taking an appointment with them in many cases)
very formal and structured.

When this was through, they were asked to fill in one chart with parameters of a
footwear industry giving their rankings. It helped in finding out their awareness level
and needs.

INFORMATION
1. Facts
2. Quasi-facts
3. The awareness of the people
4. Their needs
5. Demands
6. Satisfaction with the product
7. Opinions

SAMPLING
Sampling done was stratified random sampling. It was random because consumers
were not determined, they were divided into groups and this was done only to explore
the dimensions of the target market.

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 CONSUMER GROUPS
Consumers were divided into 3 groups and thereafter the study was done. The

three groups are as follows:

1. School & college going students – Graduates, fresh graduates, post-graduates &
freshly employed youth (08-23 yrs.)
2. Young employed people – Businessman, Executives and professionals like
chartered accounts, Doctors, Advocates, etc. (23-25 yrs.)
3. Middle-aged well settled senior Executives, Businessman, Advocates, Doctors, etc. (35
yrs. & above)
This grouping was done in order to know the general preferences of different age
groups.

COMPETITIVE ANALYSIS

MARKETING & ADVERTISING ASPECTS

MARKETING STRATEGIES: AN OVERVIEW OF ADIDAS

Market research is a method of collecting data which will make you (as a business)
more aware of how the people, you hope to sell to, will react to your products or
services. Market research will answer questions like:
 Whether your products or services are needed
 Who might want to buy your products
 What age, sex, income occupation etc. are the people I want to sell to.
 If there are changes taking place and how this might affect what you sell
 How well your products or services might sell
 How much demand there is for what you hope to sell
 What price would people be prepared to pay

Conducting market research

There are number of ways in which you can carry out your research but you need to
carefully consider why you made this choice and what you hope the evidence will
suggest to you.
Questionnaires and personal interviews are one of the most common ways in which
you can conduct market research, and there are many methods of gathering data this
way: Direct Interview, Mail Survey and Telephone interview. Depending on the type
of data you hope to collect will have an impact on what you choose to use. I have
made use of two type of survey methods, questionnaire and mail survey. I have asked
some question about the company my mail and also by direct contacts. The Question I
have asked are given in “questionnaire part” below.

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 The Marketing Mix (The 4 P's of Marketing)
Marketing decisions generally fall into the following four controllable categories:
 Product
 Price
 Place (distribution)
 Promotion
The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing manager
as a "mixer of ingredients". The ingredients in Borden's marketing mix included
product planning, pricing, branding, distribution channels, personal selling,
advertising, promotions, packaging, display, servicing, physical handling, and fact
finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four
categories that today are known as the 4 P's of marketing, depicted below:

The Marketing Mix

These four P's are the parameters that the marketing manager can control, subject to
the internal and external constraints of the marketing environment. The goal is to
make decisions that centre the four P's on the customers in the target market in order to
create perceived value and generate a positive response.

Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are
some examples of the product decisions to be made:
 Brand name
 Styling
 Quality

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 Price Decisions
Some examples of pricing decisions to be made include:
 Pricing strategy (skim, penetration, etc.)
 Cash and early payment discounts
 Price flexibility
 Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of
distribution decisions include:
 Distribution channels
 Market coverage (inclusive, selective, or exclusive distribution)
 Warehousing
 Distribution centres
 Transportation

Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the product
with the goal of generating a positive customer response. Marketing communication
decisions include:
 Promotional strategy (push, pull, etc.)
 Advertising
 Personal selling & sales force
 Sales promotions

ADVERTISING
As per Adidas advertising can get results in a promotion blend. Good results are
obtained at a cost of course. The amount spent in the Unites States for advertising is
growing. Continuously, from World War II to 1980 it went from $1 billion to
$50 billion.
Adidas also spends nearly $2.9 million on its advertising throughout the world. Adidas
in India is spending almost $17 million on advertising.
The heavy weight players like Sachin Tendulkar, Leander Paes and Mahesh Bhupathi
are already attached with their ad-campaigns.

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PRICING:
Adidas is clear; it wants to become the no. one sports brand in India, a choice brand for
all brands. So far so good, but how will it tackles a price conscious market like India?

Adidas feels that being a high energy business Adidas introduces 600-700 articles
every six months – enables the brand to remain fresh and bring on an international and
Indians the brand from the price stand point.

Price, that‟s the most critical factor in the Indian context. Adidas believes it has to
deliver a functional at an affordable price.

It‟s a tough job – to maintain the integrity of the performance and still come out with
a product a right price point. Globally shoes start at $50. But in India as the perceived
need is lower, you have to make the product more affordable.

To tackle this, Adidas came out with speed 2000, a product priced at Rs.995 with the
help of local and Hong Kong source people. Adidas however feels that it‟s just the
matter of time before India coverage‟s the world on this front.

It is very difficult to operate on a lower price point and maintain integrity of product,
but it‟s been barely 3 years since the sports market has taken off.

The original sector is just 20% of the total market and 80% of the volumes comes from
sporty shoes. But our market is producing products at a price that is relevant to the
consumers.

Adidas feels that as the volume go up, Adidas will try and work out price points as
people graduate with better understanding of quality and price perception. Volumes are
bound to go up. Adidas started at the time when India had no strength out in the sports
products market in 1989 – 90. It‟s then licensing partner Bata, and it had limitations of
what it could have put behind the brand. So company took the next best step when the
licensing agreement ended to take a bigger share in business.

To conclude we can say that Adidas is putting all efforts to bring down the price
consciousness in the Indian market. Company is trying to make products, which are
easy to afford and still maintain the integrity of their performance.

Growth has been phenomenal for Adidas even given the base is small. In 2002 Adidas
grew by 25%, 2003 by over 50% and this year Adidas is expecting more than 50% in
terms of value in both shoes and apparel, while the industry growth as a best case
estimate has been 20-25%.

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ADIDAS OTHER STRATEGY
Only now, the setting is not the playground or the track or the court, it is the urban
landscape – with its omnipresent traffic jams, crowded streets and so forth. This way,
Adidas becomes a part of life anyone‟s life. You don‟t have to be the high-voltage
performer to be a part of the Adidas family. And it goes beyond that
– Adidas becomes something that makes you better. Not just as an athlete, but as a
sports person, a better human being.
One of the advertisement: The spot featuring Boldon, shows him chasing a thief
(who‟d stolen a TV set when its owner was in the bath) through the dark streets. To
help a man (the owner, in a towel) in distress. And he uses all the power that he can, to
do what he has to do and what he needs to do. And Adidas helps him perform better,
than he would otherwise have been able to. This is perhaps shown in an oblique way
when the spot ends at the feet of Boldon and the bather.
One is wearing a pair of Adidas shoes while the other is barefoot. Adidas makes you
better, goes the base. In short, the other man could have done as well as Boldon. The
bather reads any man. Any man who wears Adidas. And Adidas goes beyond athletic
performance – it becomes everyday life. In stark reality. Though humorously and light,
it has a deep meaning.

THE ADIDAS LOGO

The “Trefoil” was adopted as the corporate logo in 1972. It represents the heritage and
history of the brand. In 1996, it was decided that the Trefoil would only be used on
heritage products. Examples of product featuring the Trefoil logo include the Stan
Smith, Road Laver, A-15 warm-up, and Classic T-shirt.

Equipment
The Adidas Equipment line was launched in 1991. This line of footwear and apparel
represents the most unique and functional of Adidas products. Equipment is the
ultimate expression of what is uniquely possible by design when form follows
function.

In January 1996, the Three-Stripe brand mark became the worldwide Adidas corporate
logo. This logo represents performance and the future of the Adidas brand. This logo is
used in all advertising, printed collateral and corporate signage.

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Since 1949, the Three-Stripes have been an integral part of our brand and product
designs. This trademark has become synonymous with Adidas and its dedication to
producing high-quality athletic products to help athletes perform better.

MARKETING & ADVERTISING STRATEGIES OF NIKE

In the late 20th century American, the cultural capital of corporations had replaced
many human forms of capital. As we but, wear, and eat logos, we become the
henchmen and admen of the corporation, defining ourselves with respect to the social
standing of the various corporations. Some would say that this the new form of
tribalism that is sport corporate logos we ritualize and humanize them, we redefine the
cultural capital of the corporations in human social terms. I would say that a state
where culture is indistinguishable from logo and where the practice of culture risks
infringement of private property is a state that values the corporate over the human.

In light of the rash of killings over Nike shoes in 1991 and the continued market
dominance of the brand, clearly Nike exerts a significant social and psychological
force on the American consumer. It is my assertion that Nike appeals to a buying
public that treats fitness as a worthy individual foal which simultaneously imparts
social identification. The question remains how? Nike ads, when first released were
“treated like new plays or books”. Concerning semiotic analysis informs this
discussion and stands as a great study aid interesting read).

Unlocking Nike‟s Ads

I plan to work with a small number of Nike ads that speak to the entire genre, though a
thorough analysis would include the Air Jordan series, the women- oriented
“Empathy” campaign, and All Conditions Gear ads to name dew. I hope to incorporate
a wider variety of Nike advertisements at a later date.
Nike‟s ads, like any other businesses require interpretation. Some of this reading goes
on at the conscious level, some unconsciously. As opposed to extremist on either side
of the interpretive question, I fall most nearly to the constructivist point of view in that
I view meaning as interplay between text and the reader. Chandler writes, “Texts are
full of indeterminacy‟s which require the reader‟s active interpretation. We must draw
not only on our knowledge of language, but on our knowledge of the world. ”

16
Thus, readers of advertisements bring with them a surface knowledge of the language
as well as a set of preconceived ideas about how to relate the ad to themselves. These
mental templates are known as schemata. Examples of these may include ideas of the
rebel, corporate businessman, or mechanics‟ garages.

Ads work on a variety of different levels including, but not limited to, sign typology,
paradigmatic meaning, psychological appeals, emotion, roles, values/beliefs, and
knowledge. Again, the impact of an ad comes from the interplay between these various
aspects of makeup and the reader‟s own notions about him/herself and the world. So,
taking the “Test Your Faith” ad as our first example: Straight off, the reader finds him/
herself thrust into the schema of religious worship. Not only must the viewer literally
look up to the runner, but he/she receives the imperative to “Test your faith.”
The runner pictured appears in the midst of a run and rests easy in the knowledge of
his own god- like attention to fitness. Likewise, the runner has no identity beyond his
role in the ad. That is, we cannot see his face, giving him an added element of the
unknown divine. The reader feels cowed looking from a subordinate position at the
figure of the runner in his element. The text implies a direct connection between
exercising (in this case, reining) and religious questioning the writers seem to suggest
an element of transcendence possible in exercise, as well as the need to continually
question who we are in relation to our gods and what we hold most sacred. For the
runner in the ad, exercise in the object of sanctity.

Yet the reader might inhabit a different role by placing themselves as the runner in the
ad itself. Transported from reading a magazine to the middle of a run, filled with the
sensual pleasure of using one‟s body, the reader identifies him/herself as the „tester of
faith, „And finding the purity of exercise within the soul, the reader can accept a
measure of hearty self-congratulation.

A slightly dissimilar angle for interpretation would be to imagine the set of causes or
drives that propelled the runner in the ad from his home to the streets for a run. The
measure of the individual in contemporary society rests upon the extent to which they
exercise their body. Seeing the runner engaged in a long run should impel the reader to
imagine their own set of values and desires. What would it take to get them on the
streets for a run? How important is exercise to that person? The ads place fitness as a
top priority and suggest that the reader must acknowledge the fitness culture, even if
they do not take an active part. Finally, the gritty grey and white tones of the
advertisement insinuate a harsh world in which running becomes an escape.
Reading the ads, perhaps themselves members of such a life, viewers will immediately
seek the release and redemption that running and exercise offer.

17
Moving on to another example of running advertising, we look at “You either ran…”
Again placed in the dichotomy between athletes and spectators, the reader need only
answer one question. Have I run today? Respondents will fall neatly into two
categories and can take with them the requisite set of emotions set of emotions that
came with their answer. Identification and affiliation with others, approval, self-worth,
and pride all spring from the answer “yes.” Meanwhile, shame (first and foremost) and
ostracization from the „in crowd‟ leave a bitter taste in the mouths of those answering
„on.‟

Placing the runner against a neutral background gives the appearance of a void in
which must be placed the sum of viewers‟ athletic endeavours. They will be judged
and given admittance or refusal to the world that Nike‟s runner inhabits. The world of
the as is composed of little more than the runner and the bland sky behind him. For the
reader, the added force of the text almost taunting, by now makes the point clear. You
must belong.
Katz assert that “Nike‟s ads in track and field and running [magazines] have long been
acknowledged to be as much away to support the sport‟s means of communication as
ways to sell gear” (119). While this may be letting Nike off a bit easy, the
advertisements above demonstrably speak to an elite group of readers well-versed in
the intricacies of running.

All these factors tie into the on-going cultural formation of the fit body discussed in
this project‟s. During the late 1980s, Nike attained a relative saturation of the
U.S. market for athletic goods and apparel, leaving Nike executives wondering
„where do we go from here? Appealing to a higher sense of excellence (are, to borrow
another Greek word married to the philosophy of Nike), Nike hoped to inculcate a
sense of individual accomplishment possible on sport as well as play into that very
same sense already budding in the breasts of consumers. Herein lays another example
of the indivisibility of the fitness culture and Nike‟s place in it. Phil Knight on
marketing: “What Nike does well is to interpret what people are doing, what they‟re
interested in and we‟ve been lucky enough to align ourselves completely with what we
perceive” (Katz 1994: 150). But one should not imagine Nike as a mere reflect of
popular culture, as the advertising example above relate. In fact, Jensen (Advertising
Age, 12/16/96) ingénues Nike‟s marketing formula to consist of the integration of the
swoosh into the cultural fabric of sports and harnessing of its emotional power.

Originally, Knight hated ads and spent must more on promotions. For example in
1976, only $100,000 was allocated for advertising versus $310,000 for promotion
(Strasser & Backland, 1994:239). Knight and the other Nike executives knew well “the
importance of owning athlete endorsed apparel…to youth for the sense of cultural
power and belonging it imparted” (Wilson & Sparks, 1996:415). And who can deny
the success of such long-term promotional efforts as the Nike Air Jordan campaign.

18
SWOT ANAYSIS ADIDAS

Strengths:
The main strength of Adidas is his Product Quality. The quality and the material uses
in Adidas are very good. The company has a good brand image in the market, the
publicity and the advertisement is also very good and lastly company holds a healthy
market share in the market.

Adidas Shoes is a very competitive organization. Phil Knight (Founder and CEO) is
often quoted as saying that 'Business is war without bullets.' Adidas Shoes has a
healthy dislike of its competitors. At the Atlanta Olympics, Reebok went to the
expense of sponsoring the games. Adidas Shoes did not. However Adidas Shoes
sponsored the top athletes and gained valuable coverage.

Adidas Shoes has no factories. It does not tie up cash in buildings and manufacturing
workers. This makes a very lean organization. Adidas Shoes is strong at research and
development, as is evidenced by its evolving and innovative product range. They then
manufacture wherever they can produce high quality product at the lowest possible
price. If prices rise, and products can be made more cheaply elsewhere (to the same or
better specification), Adidas Shoes will move production.

Adidas Shoes is a global brand. It is the number one sports brand in the World. Its
famous 'Swoosh' is instantly recognizable, and Phil Knight even has it tattooed on his
ankle.

Weakness:
The major weakness in the Adidas is that the manufacturing of the products of Adidas
is not done in India itself it is being import hence the cost become high and the margin
of profit becomes low that‟s why company must give a deep thought on manufacturing
their products in India.

Another major weakness in the company is that it is not catering to all the segments
which I have already discuss above, If these two weakness in the company can be
eradicated then the company may earn high profit and better market status.

The organization does have a diversified range of sports products. However, the
income of the business is still heavily dependent upon its share of the footwear market.
This may leave it vulnerable if for any reason its market share erodes.

19
Opportunities:
Adidas does have many products for the urban segment or poor people, but there is
hardly any product or we can say that there are no products for this segment. India is
more a rural country, in the total population of India major part of population lives in
rural area and these people cannot afford the costly products of the company like
Adidas hence company must target this particular segment they must introduce the
shoes and other product according to their demands. And also price is one of the major
factor which may influence this type of segment hence company should make their
policy accordingly.
Company must also consider the rage of products as compare to Nike and Reebok. In
my opinion the company must introduce more rage or more variety in the market to
compete with their competitors and also the customers have more choices to choice the
product from.

Product development offers Adidas Shoes many opportunities. The brand is fiercely
defended by its owners whom truly believe that Adidas Shoes is not a fashion brand.
However, like it or not, consumers that wear Adidas Shoes product do not always buy
it to participate in sport. Some would argue that in youth culture especially, Adidas
Shoes is a fashion brand. This creates its own opportunities, since product could
become unfashionable before it wears out i.e. consumers need to replace shoes.
There is also the opportunity to develop products such as sport wear, sunglasses and
jewellery. Such high value items do tend to have associated with them, high profits.
The business could also be developed internationally, building upon its strong global
brand recognition. There are many markets that have the disposable income to spend
on high value sports goods. For example, emerging markets such as China and India
have a new richer generation of consumers. There are also global marketing events that
can be utilized to support the brand such as the World Cup (soccer) and The Olympics.

Threats:
Adidas does not have strong distribution network as compare to Nike and Reebok in
India. Nike has more number of retail outlet then Adidas and Reebok has a unique
distribution network, the company Reebok not only use its outlet for the sale of their
product but also use some other shoes company outlet like “Bata”. In a Bata showroom
u can find Reebok shoes and other products. But this is not a case with Adidas hence
Reebok has an extra advantage over Adidas.

Adidas Shoes is exposed to the international nature of trade. It buys and sells in
different currencies and so costs and margins are not stable over long periods of time.
Such an exposure could mean that Adidas Shoes may be manufacturing and/or selling
at a loss. This is an issue that faces all global brands.

20
The market for sports shoes and garments is very competitive. The model developed
by Phil Knight in his Stamford Business School days (high value branded product
manufactured at a low cost) is now commonly used and to an extent is no longer a
basis for sustainable competitive advantage. Competitors are developing alternative
brands to take away Adidas Shoes‟ market share.

As discussed above in weaknesses, the retail sector is becoming price competitive.

This ultimately means that consumers are shopping around for a better deal. So if one
store charges a price for a pair of sports shoes, the consumer could go to the store
along the street to compare prices for the exactly the same item, and buy the cheaper of
the two. Such consumer price sensitivity is a potential external threat to Adidas Shoes.

'If you have a body, you are an athlete' - Bill Bowerman said this couple of decades
ago. The guy was right. It defines how he viewed the world, and it defines how Adidas
Shoes pursues its destiny. Ours is a language of sports, a universally understood
lexicon of passion and competition. A lot has happened at Adidas Shoes in the 30
years.

SWOT ANALYSIS: NIKE

Strengths:
Nike is the world‟s no. 1 shoemaker. It designs and sells shoes for a variety of sports
including baseball, golf, cheerleading, volleyball, tennis and football.

Nike uses a “Make to Stock” customer order which provides a fast service to
customers from available stock.

Nike operates Nike Town shoe and sportswear stores, Nike factory outlets and Nike
Women shops. Nike sells its products throughout US and in more than 180 countries.

Nike is strong at research and development, as is evidenced by its evolving and

innovative product range. They then manufacture wherever they can produce high
quality product at the lowest possible price.

Nike is a global brand. It is the number one sports brand in the World. Its famous
„Swoosh‟ is instantly recognizable, and Phil Knight (Founder and CEO) even has it
tattooed on his ankle.

21
Weaknesses:
The income of the business is still heavily dependent upon its share of the footwear
market. This may leave it vulnerable if for any reason its market share erodes.

The retail sector is very price sensitive. However, most of its income is derived from
selling into retailers. Retailers tend to offer a very similar experience to the consumer.
So margins tend to get squeezed as retailers try to pass some of the low price
competition pressure onto Nike.

Opportunities:
Product development offers Nike many opportunities. The brand is fiercely defended
by its owners whom truly believe that Nike is not a fashion brand however consumers
that wear Nike product do not always buy it to participate in sport. In youth culture
especially, Nike is a fashion brand. This creates its own opportunities, s

There is also the opportunity to develop products such as sport wear, sunglasses and
jewellery. Such high value items do tend to have associated with them, high profit

The business could also be developed internationally, building upon its strong global
brand recognition. There are also global marketing events that can be utilised to
support the brand such as the World Cup (soccer) and The Olympics.

Threats:
Nike is exposed to the international nature of trade. It buys and sells in different
currencies and so costs and margins are not stable over long periods of time. Such an
exposure could mean that Nike may be manufacturing and/or selling at a loss. This is
an issue that faces all global brands.

The market for sports shoes and garments is very competitive. Competitors are
developing alternative brands to take away Nike‟s market share.

22
 DATA INTERPRETATION & ANALYSIS
The following is the analysis that is based on the responses filled in by the
consumers in the questionnaire. It is calculated with the help of frequency tables,
bar graph, pi-charts, etc. all close-ended questions have been included as a part of
the analysis and the analysis of the face to face interaction and the analysis of the
close-ended questions from the base for recommendations.
1. Income Level (Per Month) of Respondents:

0% 4%

21% < 5000

5000 - 10000
10000 - 20000
>20000
75%

2. Brand Preference

Preference

Adidas
14%
Nike
44% Red Tape
14%
Sarita
Knitting
16%
Levis
12%

 43.5% prefer Nike

 12.5% prefer Levi’s
 16% prefer Sarita Knitting
 14% prefer Red Tape
 14.5% prefer Adidas

23
 3. Parameter for choosing the brand

Price 15%
Quality 26%

Comfort 27%

Style 32%

 32% choose on style basis

 27% choose on comfort basis
 15% choose on Price basis
 26% choose on quality basis

4. Buying Place

Buying Place

Company Outlets 18%

Multiple Brand Outlets 46%

Execlusive Brand Outlets 36%

 18% from company outlets

 46% from multiple brand outlets
 36% from exclusive brand outlets

24
 5. Visits to the outlets

Every Week Twice in a

6%
Month 12%

Once in a Months 82%

 82% visits once in a month

 12% visits twice in month
 6% visits every week

6. Response time taken by company in case of defective products?

Response Time

1 Week 27%
27% More than 1 Week 40%

Less than 1 Week 33%

 33% customer thinks company takes less than 1 week time in case of any
defective product
 27% thinks company takes 1 week.
 40% thinks company takes more than 1 week.

25
 7. Customer Satisfaction with services provided by the company?

 98% customers are satisfied with Service

the services provided by the company
Satisfaction

 2% are not satisfied

N
O

8. Customer Satisfaction with the sales

2 personnel of the outlets?
%

 93% are satisfied Satisfaction with Sales

Personnel
 7% are not satisfied

N
O

Y
26
7
%
E

Y
E
 1. RANKING OF BRANDS
Adidas

Levis

Sarita Knitting

Red Tape

Nike

2. By 50 customers on the parameters:

Quality

Style

Comfort

Price

Service

Advertisement

LEE COOPER

Quality

Very Poor (F) 0%

Satisfactory
(D) Poor (E)
Good © 6%4% 0%

Excellent (A) 48%

Very Good (B) 42%

 42% customers are satisfied with the services provided by the company
 48% are not satisfied
 6% services provided by the company

27
 PRICE

Very Poor (F)

Poor (E) 0%
Satisfactory (D) 0% Excellent (A) 14%
6%

Very Good (B) 24%

Good © 56%

 60% customers are satisfied with the services provided by the company
 20% are not satisfied
 20% services provided by the company

Service

Very Poor
Satisfactory
(D) Poor (E) (F)
Good © 8%4% 0%0%

Excellent (A) 40%

Very Good (B) 48%

 50% customers are satisfied with the services provided by the company
 30% are not satisfied
 20% services provided by the company

28
 COMFORT
Satisfactory (D) 0%
Very Poor (F) 0%
Good © 6%
Poor (E) 0%

Excellent (A) 48%

Very Good (B) 46%

 40% customers are satisfied with the services provided by the company
 30% are not satisfied
 30% services provided by the company

ADVERTISEMENT

Poor (E) 4%
Satisfactory (D) 11%
Very Poor (F) 0%

Good © 6% Excellent (A) 33%

Very Good (B) 46%

Excellent (A) 32%

Very Good (B) 44%
Good (C) 6%
Satisfactory (D) 10%
Poor (E) 4%
Very Poor (F) 0%

29
Red Tape

Quality
Satisfactory (D) 4% Poor Very
(E) 0%
Poor (F) 0%

Good © 12%

Excellent (A) 48%

Very Good (B) 36%

EXCELLENT (A) 48%

VERY GOOD (B) 36%

GOOD (C) 12%

SATISFACTORY (D) 4%

POOR (E) 0%

COMFORT
Poor (E)
Satisfactory0% (D) Very Poor (F) 0%
4% Excellent (A) 24%

Good © 28%

Very Good (B) 44%

Excellent (A) 24%

Very Good (B) 44%
Good (C) 28%
Satisfactory (D) 4%
Poor (E) 0%
Very Poor (F) 0%
30
Services
Poor (E)
0% Very Poor (F) 0%
Satisfactory (D) 16%

Excellent (A) 28%

Good © 24%

Very Good (B) 32%

Excellent (A) 32%

Very Good (B) 28%
Good (C) 24%
Satisfactory (D) 16%
Poor (E) 0%
Very Poor (F) 0%

Advertisement
Very Poor (F) 2%
Poor (E)Excellent (A) 10%12%

Very Good (B) 20%

Satisfactory (D) Good © 16%

40%

Excellent (A) 40%

Very Good (B) 20%
Good (C) 16%
Satisfactory (D) 10%
Poor (E) 0%
Very Poor (F) 0%
31
SARITA KNITTING

Quality
Satisfactory (D) GoodPoor
© 0%(E) Very Poor (F)
12% 0% 0%

Very Good (B) 32%

Excellent (A) 56%

Excellent (A) 56%

Very Good (B) 32%
Good (C) 12%
Satisfactory (D) 0%
Poor (E) 0%
Very Poor (F) 0%

COMFORT
Satisfactory (D) Poor (E)
4% 0%
Very Poor (F)
0%
Good ( C)
16%

Excellent
(A)
48%

Very Good (B)

32%

Excellent (A) 48%

Very Good (B) 32%
Good (C) 16%
Satisfactory (D) 10%
Poor (E) 0%
Very Poor (F) 0%

32
Price
Poor (E) 0%
Satisfactory (D) 12% Very Poor (F) 0%

Excellent (A) 36%

Good ( C) 24%

Very Good (B) 28%

Excellent (A) 36%

Very Good (B) 28%
Good (C) 24%
Satisfactory (D) 10%
Poor (E) 12%
Very Poor (F) 0%

Service
Poor (E)
2% Very Poor (F)
Satisfactory (D) 0%
4%
Good ( C)
14%
Excellent (A)
36%

Very Good (B)

44%

Excellent (A) 36%

Very Good (B) 44%
Good (C) 14%
Satisfactory (D) 4%
Poor (E) 0%
Very Poor (F) 0%

33
Advertisement

Very Poor (F) 10%

Excellent (A) 8%
Poor (E) 20%
Very Good (B) 12%

Good ( C) 14%

Satisfactory (D) 36%

Excellent (A) 8%
Very Good (B) 12%
Good (C) 16%
Satisfactory (D) 10%
Poor (E) 20%
Very Poor (F) 10%
LEVI‟S

Quality
Poor (E)
Satisfactory (D) Very Poor (F)
0%
0% Excellent (A)
6% 22%

Good ( C)
41% Very Good (B)
31%

Excellent (A) 22%

Very Good (B) 31%
Good (C) 41%
Satisfactory (D) 6%
Poor (E) 0%
Very Poor (F) 0%

34
Comfort

Very Poor (F)

Poor (E) 3%
7%
Satisfactory (D)
10% Excellent
(A) 34%

Good (
C) Very Good (B)
22% 24%

Excellent (A) 34%

Very Good (B) 24%
Good (C) 22%
Satisfactory (D) 10%
Poor (E) 7%
Very Poor (F) 3%
NIKE

Quality
Poor (E)
Satisfactory (D)
0% Very Poor (F)
4%
Good ( 0%
C) 12%

Excellent
(A)
48%
Very Good
(B) 36%

Excellent (A) 48%

Very Good (B) 36%
Good (C) 12%
Satisfactory (D) 4%
Poor (E) 0%
Very Poor (F) 0%

35
 Satisfactory (D) 4% Poor (E) 0%
Very Poor (F) 0%

Good ( C) 24%

Excellent (A) 60%

Very Good (B) 12%

Comfort

Excellent (A) 60%

Very Good (B) 12%
Good (C) 24%
Satisfactory (D) 4%
Poor (E) 0%
Very Poor (F) 0%

PRICE Satisfactory (D) Poor (E) 0%

Very Poor (F) 0%
Goo 0%
d ( C)
10%

Very Good
(B)Excellent 30%(A)
60%

Excellent (A) 60%

Very Good (B) 30%
Good (C) 10%
Satisfactory (D) 0%
Poor (E) 0%
Very Poor (F) 0%

36
Advertisement

Satisfactory (D) Poor (E) 0%

Goo 0% Very Poor (F) 0%
d ( C)
10%

Very Good
(B)Excellent 30%(A)
60%

Excellent (A) 60%

Very Good (B) 30%
Good (C) 10%
Satisfactory (D) 0%
Poor (E) 0%
Very Poor (F) 0%

37
 RECOMMENDATIONS

 Both Company should strengthen its distribution network

 Opening of company owned showrooms is recommended as it should be a place to
showcase the latest products
 I recommend the both companies should concentrate in rural areas which it has
neglected a lot. I mean smaller cities as the growth potential lies there.

LIMITATIONS

1) It‟s tough to find data on company was not ready to share data with me.
2) Time was a constraint.
3) Adidas were apprehensive in divulging the details about company and its marketing
strategies thus we tried to get the data from advertisement agency articles and net.
4) With the environment being prone to high vitality thus relevance of this project
after six months is a questionable thing.
5) The focus of study is local in nature as mobility was a problem.

38
CONCLUSIONS & IMPLICATIONS
Both companies Adidas and Nike have always been driven by its Value-for-money
strategy. The company needs to identify critical success factory and work assiduously
towards achieving it.
As the world grows to become one, many problems will arise that cannot be solved.
One of the primary challenges associated with globalization is balancing conflicting
and competing objectives. In the case of Adidas, it has faced such problems already
and how they have dealt with them is with flexibility and calmness. Despite what
could be higher costs, Adidas has chosen to stick with their human right codes and
Standards of Engagement rather than continue to be associated with subcontractors
who treat works in inhumane ways. As Adidas has grown worldwide, it has had to
deal with problems of heterogeneity vs. homogeneity. In other words, in an
increasingly heterogeneous and global world, diversity in the workplace has appeared
to emerge as an issue. Companies, including Adidas are no longer homogenous in the
sense that their companies have grown worldwide. And as a result, Adidas has had to
make worldwide headquarters and produce information and products in several
different languages. Having to spread its workforce, Adidas has come to depend on
intangibles.
The knowledge, worldwide experience and diversity that an Adidas employee can
bring to the table are valuable. Recently, how successful companies are in the global
world is increasingly derived from intangibles, such as these, that organizations cannot
own. Adidas is greatly affected by these external influences since indeed it is a global
company. For some it is not common knowledge that Adidas is a German company.
This is a result of good global business. Adidas has created a product that is global
and with that diversity and knowledge greatly affect the company. Adidas must be
able to easily adapt to different cultures and must be culturally aware when
conducting business. The long list of Adidas subsidiaries where it conducts business
proves that Adidas is constantly adapting to cultural changes and must be extremely
diverse.
Because of this necessity, knowledge is greatly valued. Great changes occur in this
industry and as a result, new ideas, intuition and inspiration are an asset that is a
necessity in this industry and to remain a global company. Who leads this knowledge
and maintains diversity are the managers, yet they too are facing new changes.
The world-economy is now passing through the recession period. So it is very difficult
either to predict future trend or to decide strategy to boost up export sales. This global
recession has also affected the leather footwear industry. But considering it as a
temporary phase we can derive some important conclusions like below:

India has a booming garment and shoe market. In various cities there, new shopping
malls have sprung up one after another and sellers compete to exhibit latest products
while consumers exhibit eager demand for brand products. Many brands expand their
businesses through franchised operation, particularly garment and shoe brands. By
2012, franchised operation is expected to hit 6% in growth rate, amounting to USD 17

39
billion in total value. This means that this market will create substantial opportunities
related to franchised operation.

According to insiders, almost all international garment and shoe brands are gloating
over the Indian market or negotiating with large textile and garment companies there
concerning franchising agreement. With the entry of many large international brands
into Indian market, India is beginning to formulate specific laws and regulations
concerning franchised operation.

Organized retail scale in India only occurs recently. Adidas is one of the first brands to
implement franchised operation and currently, almost all sports shoe brands, including
Reebok, Adidas and Nike, are operated in this mode. Indian high-end sports shoe and
garment market is expected to achieve 20% growth rate this year.

The current market is shifting from low-price shoes to medium and high-end products,
thus attracting a lot of foreign shoe brands to open stores in India. Recently, Clarks
opened its exclusive shoe store in India and other brands such as Lotto, Marco Ricci,
Valis and Tommy Hilfiger have achieved outstanding performance.

Most international shoe brands enter Indian market through different retail channels,
including exclusive stores and stores dealing in multiple brands. Indian high quality
shoe market promises great potential. India has a population of one billion. If every
Indian buys a pair of Rs. 1000 shoes, this makes a huge market.

Sports shoe market is also experiencing a booming growth. Many international brands
such as Action, Adidas and Nike are planning to expand market in India. Holding 47%
market share in Indian high-end sports shoe market, Adidas already has about 30
stores there and is planning to open a new store every week to fully cover large and
small cities in India. These new stores are mostly franchised stores. India is one of
their largest and fastest-growing markets, and it is no problem soliciting franchised
operators there. The only problem is that there are too many candidates for them to
select.

40
 BIBLIOGRAPHY
Book/Magazines Referred:

 Berry L.L (1995), “Relationship Marketing of Services-Growing Interest, Emerging

Perspectives”, Journal of the Academy of Marketing Science.
 Homer, P., Kahle, L.R., (1988), “A structural equation test of the value-attitude-
behavior hierarchy”, Journal of Personality and Social Psychology, 54, 638-46.
 Howard J. (1989), Consumer Behaviour in Marketing Strategy, Englewood Cliffs, NJ,
Prentice Hall.
 Kotler, P. (1997), Marketing Management: Analysis, Planning, Implementation and
Control, Prentice-Hall, Englewood Cliffs, NJ.
 Kotler, P. (2000), Marketing Management, Millennium Edition, Prentice Hall of
India Pvt. Ltd., New Delhi.
 Berry L.L (1995), “Relationship Marketing of Services-Growing Interest, Emerging
Perspectives”, Journal of the Academy of Marketing Science.
 Homer, P., Kahle, L.R., (1988), “A structural equation test of the value-attitude-
behaviour hierarchy”, Journal of Personality and Social Psychology, 54, 638-46.
 Howard J. (1989), Consumer Behaviour in Marketing Strategy, Englewood Cliffs, NJ,
Prentice Hall.
 Kotler, P. (1997), Marketing Management: Analysis, Planning, Implementation and Control,
Prentice-Hall, Englewood Cliffs, NJ.

Websites referred:

www.researchandmarkets.com

www.google.com

www.adidas.com

www.nike.com

41
ANNEXURE
QUESTIONNAIRE

1. Income Level (Per Month) of Respondents:

5000

0000

20000

20000

2. Brand Preference
Sarita Knitting

Levis

Lee Cooper

3. Parameter for choosing the brand

Style

Comfort

Price

4. Buying Place
Company Outlets

Exclusive Brand Outlets

Multiple Brand Outlets

5. Visits to the outlets

Every Week

Twice in a Month

Once in a Months

6. Availability of Products
YES

NO

7. Response time taken by company in case of defective products?

More than 1 Week

42
Less than 1 Week

1 Week 27%

8. Customer Satisfaction with services provided by the company?

Yes

No

9. Customer Satisfaction with the sales personnel of the outlets?

Yes

No

Lee Cooper

Price

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Service

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)
Poor (E)

Comfort

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

43
Services

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Price
Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Advertisement

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

SARITA KNITTING

Quality

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)
COMFORT

44
Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Price

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Service

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)
ADVERTISEMENT

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Levis

Quality

Excellent (A)

Very Good (B)

45
Good (C)

Satisfactory (D)

Poor (E)
COMFORT

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

NIKE

Quality
Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

COMFORT

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Very Poor (F)

SERVICE

Excellent (A)

Very Good (B)

Good (C)

46
Satisfactory (D)

Poor (E)

Very Poor (F)

Price
Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Very Poor (F)

Advertisement

Excellent (A)

Very Good (B)

Good (C)

Satisfactory (D)

Poor (E)

Very Poor (F)

47