Professional Documents
Culture Documents
Rahul Dogra Sip Edited
Rahul Dogra Sip Edited
By
RAHUL DOGRA
(22GSOB2010886)
Nov, 2023
Certificate of Approval
Name Signature
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Certificate from Summer Internship Project Guide
This is to certify that Rahul Dogra, a student of the Master of Business Administration / Bachelor of
Business Administration/ Bachelor of Management Studies has worked under my guidance and supervision.
This Summer Internship Project Report has the requisite standard and to the best of my knowledge, no part of it
has been reproduced from any other summer Internship project, monograph, report or book.
Signature:
School of Business
Galgotias University
Date
3
4
5
DECLARTION
I further declare that it has not been submitted elsewhere by any other person in
any of the institutes for the award of any degree or diploma.
Rahul Dogra
Signature of the Student
Date
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ACKNOWLEDGEMENT
This project is the outcome of sincere efforts, hard work and constant guidance of not only me but a number of
individuals. First and foremost,
I am thankful to my guide MS. SOMYA GUPTA for providing me help and support throughout the Project
Report period.
I owe a debt of gratitude to my faculty guide who not only gave me valuable inputs about the industry but was a
continuous source of inspiration during these months, without whom this Project was never such a great
success. Last but not the least I would like to thank all my Faculty members, friends and family members who
have helped me directly or indirectly in the completion of the project.
Rahul Dogra
Date
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CONTENTS
1. EXECUTIVE SUMMARY
2. INTRODUCTION
3. COMPANY’S PROFILE
4. MARKETING STRATEGIES
6. FINANCIAL FACTS
7. SWOT ANALYSIS
8. RESEARCH METHODOLOGY
9. DATA ANALYSIS
10. DISCUSSION
11. FINDINGS
12. LIMITATION
13. RECOMMENDATION
14. CONCLUSION
15. ANNEXURE
16. BIBLIOGRAPHY
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EXECUTIVE SUMMARY
My project topic is "Adidas" which is a shoe company and I am analyzing its Marketing
Strategy. I have chosen this particular topic mainly for two reasons. Firstly, since my childhood
days I had great interest in the shoes and I like to buy new shoes as and when it comes in the
market. The Shoe Company that I most admire is Adidas. Secondly adidas grows as one of the
best leading brand in the shoes and other accessories which is admired by all types of generation.
Hence I have decided to do my project report on this company.
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 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
I have made a research report on marketing of Adidas by questionnaire method. The main aim
of this report is to find out that how Adidas hold to the market and what are the areas in which
Adidas can improve upon, in the questioner itself I have emphasis on the marketing of Adidas
and also about the current position of Adidas in market. According to the response of my
questionnaire, I have found that Adidas and Nike are main competitors but Nike is more
preferred brand then Adidas. This is mainly for two reasons first Nike has more variety and good
looks then Adidas and second there outlets are more then Adidas so the company must work
upon these two thing to be the world number one.
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INTRODUCTION
in Herzogenaurach, Bavaria, Germany. It is the largest sportswear manufacturer in Europe, and the
second largest in the world, after Nike. It is the holding company for the Adidas Group, which also
owns an 8.33% stake of the football club Bayern München, and Runtastic, an Austrian fitness
technology company. Adidas's revenue for 2018 was listed at €21.915 billion.
The company was started by Adolf Dassler in his mother's house. He was joined by his elder
brother Rudolf in 1924 under the name Gebrüder Dassler Schuhfabrik (Dassler Brothers Shoe
Factory). Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic
events. To enhance the quality of spiked athletic footwear, he transitioned from a previous model of
heavy metal spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to
use his handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in the
relationship between the brothers, Adolf created Adidas and Rudolf established Puma, which
became Adidas's business rival.
The three stripes are Adidas's identity mark, having been used on the company's clothing and shoe
designs as a marketing aid. The branding, which Adidas bought in 1952 from Finnish sports
company Karhu Sports for the equivalent of €1,600 and two bottles of whiskey, became so
successful that Dassler described Adidas as "The three stripes company
To study the marketing of Adidas and also about the current position of Adidas in market
To find out Adidas and Nike are main competitors but Nike is more preferred brand then others.
To find out that how Adidas hold to the market and what are the area seen which adidas can
improve.
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COMPANY PROFILE
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 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
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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 percent.
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 Center. 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.
The turnover of Adidas company has grown to 20Million US dollar in year 2005-06. 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
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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 percent.
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 Center. 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.
The turnover of Adidas company has grown to 20Million US dollar in year 2005-06. 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
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MARKETING STRATEGIES: AN OVERVIEW OF
ADIDAS
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
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 a impact on what you choose to use. I have made use of two type of survey
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methods, questionnaire and mail survey. I have asked some question about the company by
mail and also by direct contacts. The Question I have asked are given in ―questionnaire part‖
below.
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
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below:
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 center
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
Price Decisions
Price flexibility
Price discrimination
Distribution is about getting the products to the customer. Some examples of distribution
decisions include:
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Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Warehousing
Distribution centers
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:
Advertising
Sales promotions
This theory tells about the company strength, weakness, opportunity and Threats. This theory is
very important for the company because this theory tell the weakness and the strong points of the
company and if company knows it weakness and it strong points then company becomes easy
operative and also the profits as well as the market share of the company get increased.
The Company
Adidas entered the Indian market in 1996 by setting up a 100% subsidiary of Adidas AG called
Adidas India Ltd. and announced its joint venture with Magnum International Trading Company
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Ltd. on October 1, 1996. The new joint venture – Adidas India Ltd. – was incorporated with an
initial investment of US $ 205 million with Adidas India Ltd. holding 80% of the equity and
Magnum holding the balance 20%. This investment was raised to US $ 6.4 million with the
equity structure remaining the same. Currently, the total investment stands at US $ 11.4 Million
with the equity structure changing to 91.4% by Adidas and 8.6% by magnum.
A month after announcing the joint venture, Adidas India Ltd. launched its range of sports
footwear, apparel and accessories in New Delhi on November 1, 1996. Subsequently, Adidas
products were also launched in Mumbai, Bangalore, Chennai, Hyderabad and Calcutta.
Currently, Adidas products are available in 30 cities in India.
The range of Adidas products available in India include sports footwear featuring some of the
most popular innovations and technologies developed by Adidas such as Feet You Wear, Torsion
system and adi wear. The sports footwear available in India includes a wide range of core
categories such as adventure, basketball cricket, golf, indoor, running, tennis, training, soccer
and workout.
Adidas has introduced in India, a wide range of sports wear for both men and women. These
include apparel for athletics, basketball, cricket, golf, running, soccer, swimming, tennis and
training for Men. The women‘s range includes apparel for athletics, golf, running, swimming,
tennis, training and workout. Accessories include bag packs, campus bags, medium and large kit
bags, caps, socks, wrist and headbands.
Adidas Markets its products in India through a combination of mega exclusive stores (area of
1000 sq. feet and above), exclusive stores, multi-brand stores and distributors.
At present, Adidas is available in 80 exclusive outlets out of which 34 are company – owned
with 8 new Company – owned stores planned for 2005 and in 500 multi-brand outlets in India.
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MARKETING-MIX (FOUR P’S): ADIDAS
The Product
Whatever your athletic preference, you can now purchase an extensive range of Adidas footwear
and apparel online. From running shoes to baseball cleats, eye wear to lanyards, collegiate
licensed jackets to good old fashioned cotton T-shirts, all things sport are available at the Adidas
store.
Adidas goal is to create a product that is honest – it must perform. The rule is simple:
Technology and functional design. A development team makes the actual prototypes.
These prototypes are then presented to the retail market by the marketing department.
An Adidas product is the result of the intense thought and creative energy of many
performance-based products.
1. The marketing department evaluates athletes‘ needs and develops a basic concept of
how those needs should be met. This concept is then presented to the design
department.
2. Based upon this concept from the marketing department, the design teams sketch possible
prototypes.
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3. The people from design and marketing consider the prototype sketches together,
narrowing the selection to those they anticipate will most successfully meet athletes‘ needs.
4. The development department then works with the design department to create an actual
5. Three separate groups – marketing, design and development – meet and discuss how to improve
the prototype.
6. Samples are wear-tested to ensure the product meets Adidas standards for performance and
durability and stands up to the demands of the sport for which it was designed.
7. Preview samples are presented to key accounts and consumer focus groups for feedback. Based
I. As A BRAND
At Adidas –you have got to be sporty. At Adidas the brand awarding is been taken rather
What that kind of stuff got to do with Indian market? Yes, it won‘t really be a hot seller, but it
will contribute a lot to Adidas brand image. That‘s the Adidas way of doing it – image is a
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The idea of the company is to introduce performance specific sports shoes in the Indian market
by building images around the world & at the same time create the need for these shoes at the
ground level.
Adidas already has heavy weight sportsmen such as Sachin Tendulkar, Leander Paes
& Mahesh Bhupathi endorsing the brand in India. They had the image, apart from endorsing the
performance element in the brand. Adidas steps out of crease with a clear sports positioning.
Adidas will take on arch Nike with almost the same positioning. Its working with promising
athletes to give them a taste of its products. Adidas nowadays is capturing an attitude that is
sports related.
Adidas in fact did go through a limited fashion phase. Adidas says – that you are tempted to
make quick buck but we would like to stick to the sports brand image because that make us
fashionable.
―Our Secret is our commitment to the sports process. We develop shoes that take into account
the needs of a particular sports & the role of this brand is driven by this factor‖.
Good news for Adidas is that even in the casual market, the trend is towards being sporty. Going
to Gym is fast graduating from a mere fad to serious body building, strengthening & toning. This
is reflected in the clothes that people wear today. The three stripes, for instance is unique
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C. For Adidas the product plays an eminent role in the enhanceme nt of their
ADIDAS SAYS –
―Nothing compromised. The most innovative Adidas products created specifically to help make
you a better athlete. For Adidas, product is not just a assortment of few items. But it involves—
developing of the right product – which can then be put to right place & sold with the right
promotion & price.
Our goal is to create a product that is honest – it must perform. The rule is simple: form follows
function.
As studied earlier an Adidas product is the result of the intense thought and creative energy of
many different people. If a company sell an automobile, is it selling a certain no. of nuts and
If a company sell a delivery service, is it selling so much wear and tear on a delivery truck and
so much operator fatigue? As per Adidas the answer to these question is instead what we are
Adidas says that all the customer wants is, that whatever product they purchase should fulfill all
their needs and preferences. They don‘t care how they were made. Further they want that when
they order something, the don‘t really care how much out of the way the driver had to go or
where he/she has been. They just want their package. That means for them only the final service
matters.
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As per Adidas the idea of product potential customer‘s satisfactions or benefits is very important.
Adidas says that the total product is not just a physical product with its related features, but it
includes accessories, installation, instruction on use, the package, perhaps the brand name which
fulfills some psychological needs a warranty and confidence that service will be available after
A: Place
Adidas is very much concerned about its second ―p‖. as per Adidas place and physical
distribution of the product is something on which almost every company spends a handsome
amount of money.
Hence Adidas takes a good care of its place and physical distribution process. Adidas has
appointed marketing specialists who are taking care of the supply of the product and their
Entire range, which is available is put together to give a target market what it wants. Marketing
specialists put together an assortment to satisfy some target market. His is usually done by those
B: Physical distribution
As per Adidas nearly half of the costs of marketing is spend upon the physical distribution.
To take care of this problem Adidas has appointed marketing managers who decides how the
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Note: Physical distribution can be varied endlessly in a marketing mix and in a channel system.
TRUCKS
In Adidas, except the export products, trucks are considered to be the best medium for transport.
The flexibility of trucks makes them really good for moving small loads for short distances. They
can travel on almost any road. According to Adidas they can give extremely fast service. Also
PROMOTION:
Adidas is one of the India‘s biggest company of sports that spends nearly $10 million on its sales
Adidas believe that it just cannot be taken lightly. It is a very important aspect of products life
cycle. It is the process which is responsible for the growth or decline in the sale of the product.
Adidas thinks that promotion is communicating information about the product between the seller
To handle the company‘s promotional activities Adidas has employed marketing managers,
wherever the Adidas is located. These marketing managers look after process of the promotion
As per Adidas the marketing managers promotion job is to tell the target customers that the right
product is available at the right place and at the right time and especially at the right price.
Adidas thinks that only taking the product to the customers is not a task of the company. But
company takes a very important look about how the product works and this message is
communicated to their consumers. Because a wrong message can lead to the end of their
products life.
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Sales Promotion
Adidas is the most popular amongst its rival for its excellent sales promotional activities.
As per Adidas they say that they themselves are responsible for the enc ouragement of the
customer to by their products. Adidas believes sales promotion tries to compliment the
In the last years the Adidas has almost given sale to its products 6 to 7 times i.e .
almost twice in a year Adidas goes for discount on sales. They arrange contest.
In order to motivate the employees of the company Adidas also prepares training material for the
company‘s own sales force. They even design the sales materials for the company‘s own sales
As per Adidas, people see same message in different ways. They may interpret the same words
differently. So Adidas always tries to deliver the message which everyone can easily understand.
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,
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 tackle a price conscious market like India?
Adidas feels that being a high energy business Adidas int roduces 600-700 articles every six
months – enables the brand to remain fresh and bring on an international and Indians the brand
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 its just the matter of time before
India coverage‘s the world on this front. It is v ery difficult to operate on a lower price point and
maintain integrity of product, but its 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. Its then licensing partner Bata, and it had limitations of what it could have put behind the
brand..
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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
Growth has been phenomenal for Adidas even given the base is small. In 2010 Adidas grew by
25%, 2011 by over 50% and this year Adidas is expecting more than 50% in terms of value in
both shoes and apparel, while the i ndustry growth as a best case estimate has been 20 -25%.
Adidas, the brand with three stripes, seems to use the elements of high -tension in its ads.
Remember the Sachin Tendulkar commercial? How everything is ne ar-frozen, and the shattering
glass signifies release. Release of tension. Adidas gives you a chance to but the boundaries – in
every sphere.
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
One of the advertisements: 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.
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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
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.
MARKETING: ADIDAS
In 1997, Adidas became Adidas-Salomon with its US $1.4 billion purchase of Salomon, a French
manufacturer of skis and other sporting goods. The deal put Adidas one step closer to competitor
and world market leader Nike, and one step ahead of Reebok.
Salomon, aside from its winter sport equipment, also owns golf club brand Taylor Made and
cycle brand Mavic. The merger makes Adidas/Salomon the second largest sport marketer in the
world, and number one in Europe. Salomon is currently very strong in North America and Japan,
Adidas is, like Nike, very active insuring sponsorships advertising deals with celebrities. Some
of the most famous are Martina Hingis (tennis), Kobe Bryant (basketball), Peyton Manning, Paul
Palmer (swimmer), jan Ullrich (racing cyclist) and the New York yankees. David Beckham,
Patrick Kluivert and Zidane all wear Adidas boots, the Predator Accelerator.
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LEVERAGING ON SACHIN: ONE MAJOR PART OF MARKETING
STRATEGY IN INDIA
Continuing its association with trump card Sachin, the local four-ad print campaign tries to
connect Adidas‘ product attributes with Sachin‘s magic. ―Instead of presenting just one
dimensions :
The first ad connects Sachin‘s choice of a heavy bat with Adidas‘ Falcon Dorf light weight
shoes. Says the headline: ‗Sachin likes his bat heavy, not his shoe.‘
The second new shoe range to be introduced for the first time in India. Sub-branded ‗Aksu‘ and
priced at Rs 2,299, these are athletic sandals primarily meant for water-based adventure sports.
Finally, The next ad will convey that Adidas covers various price points by promoting its
existing Portland range priced at Rs 1,499 and 1,799 (the leather version).
The importance of celebrity sponsorship and events to Adidas is illustrated by Robert Louis-
―When it comes to showcasing our brands, 1998 was truly exceptional. Early in the year, the
Winter Olympics focused the attention of sports enthusiasts on Nagano. In summer, the Soccer
World Cup in France attracted more spectators than any single sports event before. When the
French team, promoting the three stripes, won the World Cup, we could not have wished for
Adidas has reached an agreement with ISL Marketing of Switzerland to become an official
sponsor of the 2000 UEFA European Championships. Adidas will have access to the official
emblems, mascot and trophy for the design of its own products..
In 1998, the overall Adidas budget for promotion and sponsoring accounted for nearly 15% of
turnover.
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The positioning is being communicated through its global campaign-released worldwide in
February 1999 but in India, only in May-as well as through a four-ad print campaign developed
locally by RK Swamy/BBDO. Says G Kanan, general manager, marketing, Adidas: ―We are
the only brand with heritage in sports. As a brand, we‘re not an attitude that‘s fashionable. We‘re
The campaign also introduces a new brand line for Adidas: ‗Forever Sport‘. The line sums up
the ―deeply-felt‖ and ―long-term love affair‖ (it has been involved with sports since 1928) that
Adidas has with sport in all of its forms. Interestingly, the new brand line has been introduced
almost after a decade, when it was using ‗Earn your stripes‘ as its tag-line. The company
dropped it during the late 80s after it found that it wasn‘t connecting too well with its consumers.
But the golden question is that will the campaign make Adidas run?
The company expects the campaign to strengthen the image of the brand since research had
indicated that neither of the three multinational sports shoe brands present in India had a clear
image: most were perceived as diffused brands and personality-led. Says Kanan: ―Sachin has
and will play a major role in pushing the brand. He is important, as there are certain values a
consumer needs to know about Adidas. But after a certain duration, we have to present a global
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-
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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
In January 1996, the Three-Stripes 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,
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
ADIDAS: COMPANY’S
FINANCIAL FACTS
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 £182 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 ever 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 19 percent.
31
SWOT ANAYSIS
Strengths:
The main strength of Adidas is his Product Quality. The quality and the material uses in Adidas
is very good.
The company has a good brand image in the market, the publicity and the advertisement is also
very good and lastly company hold a healthy market share in the market.
Another strength of the company is its well efficient and effective management, which works as
a team.
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
32
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 can not afford the costly products of the company like Adidas hence
company must target this particular segment they must introduce the shoes and other product
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 range and the variety of the 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 customer have more choices to choice the product from.
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 uses 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 do not have any competitive advantage as compared to Nike and Reebok.
33
RESEARCH METHODOLOGY
STAGE ONE
The project study started with collection of Secondary Data. The sources for the secondary data are
as follows:
Data Sources
News Papers
Magazines
Internet
Stage Two
I visited the Adidas India Ltd., which is located In Mehrauli (new Delhi). I Also Met Some Of The
I Also Got Some Of The Information From The Other Resources Of The Corporate Office Like :
Company Journals
Company Catalogs
Primary data:
I have prepared a questionnaire for the general public asking about the marketing strategy of
Adidas, in that particular questionnaire I have asked some question give in finding and analysis
34
DATA ANALYSIS
1. How does u rate the company marketing strategy as compare to the other competitors company
like Nike, Reebok etc.?
Out of 80 people 36 had said Adidas have a good marketing strategy and should continue like
this only, 24 had said Nike is more better then Adidas, 16 said Reebok is good and 4 said others.
others
5%
reebok
20% adidas
adidas nike
45% reebok
others
nike
30%
35
Do you think that the advertisements and the brand ambassador of the company is good enough?
Out of 80 people 66 person said yes they like the advertisement very much and rest said no they
don‘t like them.
0%
18%
happy
not happy
82%
What things u keep in mind while purchasing shoes will it be quality, advertisement, price or
design?
Out of 80 people 69 person had said that the product must have good quality and good design
and other said they purchase these shoe for status symbol only.
0%
14%
quality
other factor
86%
36
2. If u have to purchase shoe except Adidas which shoe it will be and why?
Out of 80 people 42 have said Nike, 23 said Reebok and 15 others, which shows that the main
competitor of Adidas is Nike. They have given different reason for that some said Nike and
Adidas are have same range of products and there quality and prices is also same, so different
people have different opinion.
19%
nike
52% reebok
others
29%
DISCUSSION
As of Analyzing the data there is lots of point to discuss Adidas is a growing company as stated
above, but how much and how fast? As you can see from the graph of net sales over the past five
years, sales have grown rather exponentially
37
While purchasing shoes will it be quality, advertisement, price or design?
Out of 80 people 69 person had said that the product must have good quality and good design
and other said they purchase these shoe for status symbol only.
This shows that Adidas does not have a large market share in Asia as compare US and Europe
Out of 80 people 66 person said yes they like the advertisement very much and rest said no they
don‘t like them.
FINDINGS
Adidas-Salomon AG operates in the Men‘s & boys‘ clothing sector. This analysis compares
Adidas with three other sport shoe and apparel manufacturers: Nike Inc. of the United States
(2004 sales of $9 billion of which 59% was Footwear), Reebok International Ltd. of the United
States (2003 sales: $2.87 billion of which 73% was Footwear), and Amer Group PLC which is
based in Finland (2003 sales of 6.46 billion Finnish Markka [US$996.88 million] of which 24%
was Racquet Sports). Note: not all of these companies have the same fiscal year: the most recent
data for each company are being used.
38
(C) Sales Analysis
During the first quarter of 2004, sales at Adidas totalled 1.56 billion euro. This is an increase of
2.7% from the 1.52 billion Euro in sales at the company during the first quarter of 2003. During
the previous 17 quarters, sales at Adidas have increased compared with the same quarter in the
previous year.
Sales at Adidas appear to have some seasonally: during each of the previous 5 years, sales have
been highest during the third quarter, which has accounted for between 28.0% and 32.0% of the
annual sales.
Adidas reported sales of 5.38 billion Euro (US$5.35 billion) for the year ending December of
2004. This represents an increase of 9.0% versus 2000, when the company‘s sales were 5.35
billion Euro. Sales at Adidas have increased during each of the previous five years (and since
1999, sales have increased a total of 226%).
6 3.62
2.61
4 1.79
0
1999 2000 2001 2002 2003 2004
In 2002, sales in Latin America were up at a rate that was much higher than the company as a
whole: in this region, sales increased 36.0% to 171.00 million euro. Adidas also experienced
significant increases in sales in Asia-Pacific (up 3.9% to 875.00 million Euro).
39
GROWTH
Adidas is a constantly growing company. It is global in scope with the majority of its sales
coming from Europe, followed by the United states, with the smallest percent of Adidas‘ sales
coming from Asia. Adidas sales have grown significantly each year from 1994 to the present.
Adidas is the leading producer of sporting goods in Europe and it is second in the overall world
market, just behind Nike. Nearly 55% of Adidas revenues come from Europe, while 37% come
from the Americas, and only 9% of revenues come from a growing Asian market.
For anyone not familiar with the structure of this company (since it is not based out of the USA),
it is much like US based competitor Nike. Adidas has stock traded on exchanges in Frankfurt and
Pairs, and its ticker symbol is ADDDY. The pie chart below shows exactly how the ownership of
the company is spread out across the world. Most of the ownership comes from Europe, while a
substantial 30% comes from the United States, and the rest from Asia.
Asia
5%
Europe US
40% 30%
UK
25%
40
Adidas is a growing company as stated above, but how much and how fast? As you can see from the
graph of net sales over the past five years, sales have grown rather exponentially, although growth
slowed in 1999. This growth in sales comes from not only an improving world economy, but from
Adidas‘ marketing efforts to make it one of the most popular sporting goods brands.
This shows that Adidas does not have a large market share in Asia as compare US and Europe and
my questionnaire (given below) also suggest that company can improve a lot the certain areas are
marketing distribution and competing with the competitors. The company has to become innovator
not follower they must do something differently to come with the flying colors.
LIMITATIONS
The research project has been com pleted with ease and comfort . No particular limitation or
shortcoming was realized during the anal ysis.
Also, due to time con straints, enough justice could not be done to the project .
RECOMMENDATION
For 20012, the Adidas brand‘s new divisional structure will be in place to start delivering
positive results for the Group. Adidas America will remain a challenge but nevertheless will
deliver qualitative sales improvements in the second half of 20012. Top-line growth is expected
in all other regions. Double-digit growth from Salomon is projected as a result of the continued
innovative strength and the increasing profile of their products. The integration of Mavic with
Salomon, which began in 2002, was continued in 2005, with further synergies between the two
brands. At Taylor Made-Adidas Golf, increased marketing and sales support will target
ambitious golfers, and solid growth in all the major golf markets is expected to continue.
41
But the battle has only started, and the foreign sports companies are here for the long term. They
can sustain losses for years to come in order to gain market share. What they are doing at
present, is building up distribution networks to cover every nook and corner of the country and,
Only those Indian manufactures which have a strong focus on manufacturing and technological
upgradation will survive in the long run, although with a much smaller market share than they
have at present. Small companies will be sidelined totally and will exit from the sports market
altogether. ADIDAS in INDIA has always been driven by its Value – for-money strategy. The
company needs to identify critical success factory and work assiduously towards achieving it.
In addition to these positive top-line developments, gross margins are expected to remain
within a range of 41% to 43%, operating expenses will decline as a percentage of sales, and
as a result
Adidas is currently ranked third in almost every category in the global athletic shoe industry.
However, they rank second only to Nike in terms of sales. The main competitors of Adidas
include Nike and Reebok However, other smaller competitors include Fila, Puma and Easy
Spirit. Adidas commands only 5% of the athletic shoe business in the U.S., compared with
the 40% for the fearsome Nike, but the rejuvenated Adidas has climbed to within easy reach
of Reebok, which has been struggling in the past couple of years. Adidas is also steadily
regaining market share lost to other brands such as L.A. Gear and Fila (Fortune, 2000)
42
Since acquiring their current president, Louis-Dreyfus, Adidas, a wholly owned subsidiary, has
competed with a whole new strategy. Aside from cutting the whole line of German senior
management, Louis-Dreyfus also fired management in Asia, who failed to match competitors‘
low costs in subcontracting shoemaking to local companies. While Louis-Dreyfus fought bring
down costs, he also took a gamble on the side. Adidas began to focus on global marketing.
CONCLUSIONS
ADIDAS in INDIA has 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.
43
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.
It seems that conducting a survey is a very good choice to allow consumers to evaluate what
they wanted and what they are unsatisfied with. However, the drawbacks such as few willing
respondents and not able to fully voice out their opinions. This is not much of a problem as
survey questions are not very specific. But, conducting a survey is able to give us some idea of
what consumers are really thinking about Adidas products. In the future, survey questions will
be made to allow the consumers to give more accurate and specific answers to the Adidas brand.
This method, when done continuously, will create an idea that Adidas can use to fully meet
44
ANNEXURE
QUESTIONNAIRE
1. How do u rate the company marketing strategy as compare to the other competitors company like
Nike, Reebok etc.?
Adidas Nike
Reebok Others
2. Do u think that the company Adidas is giving its customer what they want in terms of quality and
prices or value for money?
4. What things u keep in mind while purchasing shoes will it be quality, advertisement, price or
design?
Nike Reebok
Others
6. What do u think that the company Adidas must do to improve its marketing strategy?
______________________________________________________
45
Format No: GU/M-30/ Form-1
Complete and submit to the Dean through School Internship Program Coordinator. (Type or write clearly)
Student Name:
Home Address Phone
Email address
Program Internship Semester
Overall GPA
Internship Preferences
Location Core Area Company/ institution
F-1 Preferance-1
Preferance-2
Preferance-3
Faculty mentor Signature: _________________________Date___________.
(Signature confirms that the student has attended the internship orientation and has met all paperwork and
process requirements to participate in the internship program, and has received approval from his/her Advisor)
Student Signature: _______________________________________Date__________.
(Signature confirms that the student agrees to the terms, conditions, and requirements of the Internship Program)
Dean Dean IIIC Dean Academic
46
Format No: GU/M-30/ Form-3
F-2 4-8 weeks internship Request Letter from University to internship provider
To
The General Manager (HR)
....................................... .......................................
We feel privileged to introduce Galgotias Educational Institutions (GEI) as one of the leading and quality-
driven educational groups in the Delhi-NCR Region.
Galgotias Educational Institutions consist of three institutions:
Galgotias College of Engineering & Technology (GCET)
Galgotias Institute of Management & Technology
(GIMT) Galgotias University (GU).
Galgotias Educational Institutions combine a supremely empowering educational process, industry stalwarts in
their faculty, global educational associations, and relentless placement efforts, to offer the best of career
opportunities to its students. Galgotias Educational Institutions are known for a combination of state-of-the-art
campus, strategic teaching-learning process, together with the most advanced facilities, creating an
environment in which wholesome corporate personalities are created.
Further, we‘d like to furnish that as a part of the course curriculum, our students are required to undergo a
Summer Internship Program of 45 Days. The Internship Duration will be from ………………………….
In this regard, we request you to kindly allow -Student name-------------- (Admission No.- ) student of 2 years
full-time program of Business Administration (Batch-………….) to complete Summer Internship in your
esteemed organization by assigning project work pertinent to the stream pursued.
Feedback on the student‘s progress and evaluation on the assigned ‗Project‘ will be highly
appreciated. Yours sincerely,
Dean Industry Internship Interaction Cell
47
Format No: GU/M-30/ Form-4
I will strictly abide by all rules and regulations of the industry/Institute and Galgotias University, Uttar Pradesh.
I shall be responsible for my conduct and own safety at the industry/Institute and Galgotias University, Uttar
Pradesh shall not be responsible for this in any manner.
I shall take care of my personal belongings. I shall not make any claim and no type of any claim shall be made in
my respect and on my behalf by anyone in respect of any loss or injury to me (including fatal injury or death) or to
the property of mine which may suffer or occur during the above mentioned programme.
I will not act in any manner that defames the industry/Institute and Galgotias University, Uttar Pradesh, in any
manner whatsoever.
I will not claim the expenses over & above for stay & mess to the Industry/Institute or to the University.
I will regardless of age, may not use or be in possession or under the influence of alcohol or unauthorized
drugs on either the industry premises or place of stay (Hostel/ rental accommodation) Violation of this regulation
may result in suspension or expulsion from the university.
I will maintain confidentiality of work-related projects and personnel.
I will familiarize myself with, and adhere to, relevant organizational arrangements, procedures, and functions.
I will understand what constitutes a permissible work absence and who to notify if absent, be prompt with being
on time to work and with assignments; give it my best effort.
I will report changes in work schedule, supervision, or problems at the site to the internship coordinator and
industry supervisor.
I will dress appropriately for the work setting.
I will follow through on commitments.
I will not conduct personal business during work hours (i.e. e-mails, cell phones, and internet).
I will keep a positive attitude, open mind; avoid jumping to conclusions; try to make informed judgments.
I will communicate – keep people informed in a useful and succinct way, listen and ask questions.
I will be fair, considerate, honest, trustworthy, and cooperative when dealing with co-workers.
I will assert ideas in an appropriate and tactful manner, seek feedback from supervisors, accept suggestions for
corrective changes in behavior and attempt to improve performance.
I will accept constructive criticism and continuously strive to improve performance, seek to enhance professional
effectiveness by improving skills and acquiring new knowledge.
I am fully aware that no faculty coordinator is accompanying me and no coordinator is appointed on behalf of the
university at the place of internship.
Date Signature:
Place Name of Student:
Department Phone Number:
Semester Section-Roll No
I have allowed my ward (name as indicated above) for the above-mentioned Internship and instructed him/her to
take due precaution for safety and discipline as listed above. I also undertake that the Industry/Institute or the university shall
in no way be responsible for any loss or injury to my ward during the programme.
Date: Signature
Place: Name of Parent:
Address: Mobile No:
48
Format No: GU/M-30/ Form-5
49
Supervision: Describe in as much detail as possible the supervision to be provided/needed at the work site. List
what kind of instruction, assistance, consultation you receive from whom, etc.
Evaluation: How will your work performance will be evaluated? By whom? When?
Part IV: Agreement
This contract may be terminated or amended by faculty mentor or Industry mentor at any time upon written
notice, which is received and agreed by the other two parties.
Student Signature: Date:
Faculty Mentor signature: Date:
Industry Mentor Signature: Date:
50
Format No: GU/M-30/ Form-6
F-5 One Page Report for Industry Training with Topic identification
Branch :
Name of student: Section-Roll No.:
Contact Number: Project Batch:
GU mail id-
Name of Company:
Company Address
Industry Person Name & Contact No Email ID
Designation
HR
supervisor:
Details of Industry:
Topic Identification
51
Format No: GU/M-30/ Form-7
GU faculty visiting the training site may ask the students to show their work and put
their remarks on this page.
52
Format No: GU/M-30/ Form-9
53
Signature of Industry mentor:
54
permanent
employment
Helped me develop
my written and oral
communication skills
Provided a chance to
use leadership skills
(influence others,
develop ideas with
others, stimulate
decision-making and
action)
Expanded my
sensitivity to the
ethical implications of
the work involved
Made it possible for
me to be more
confident in new
situations
Given me a chance to
improve my
interpersonal skills
Helped me learn to
handle responsibility
and use my time
wisely
Helped me discover
new aspects of myself
that I didn‘t know
existed before
Helped me develop
new interests and
abilities
Helped me clarify my
career goals
Provided me with
contacts which may
lead to future
employment
Allowed me to
acquire information
and/ or use equipment
not available at my
Institute
In the Institute internship program, faculty members are expected to be mentors for students.
Do you feel that your faculty coordinator served such a function? Why or why not?
55
How well were you able to accomplish the initial goals, tasks and new skills that were set
down in your learning contract? In what ways were you able to take a new direction or
expand beyond your contract? Why were some goals not accomplished adequately?
Considering your overall experience, how would you rate this internship? (Tick One)
Satisfactory Good Excellent
Give suggestions as to how your internship experience could have been improved.
Signature Date
56
57
58
NO OBJECTION CERTIFICATE
59
BIBLIOGRAPHY
Books:
PHILIP KOTLER, MARKETING MANAGEMENT, EDITION 2005.
V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT,
SECOND
EDITION.
Web Sites
www.adidas.com
www.indiainfoline.com
www.webcrawler.com
www.indiatimes.com
Magazines
A&M
Business India
India Today
Business Today
Newspapers
The Times of India
The Hindustan Times
The Economic Times
\\\
60