Customer Satisfaction of Adidas

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Customer Satisfaction OF Adidas

B.com(hons) (Guru Gobind Singh Indraprastha University)

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MINOR PROJECT REPORT SUBMITTED TOWARDS A PARTIAL FULFILMENT OF


BACHELORS OF COMMERCE

MINOR PROJECT REPORT


ON
CUSTOMER SATISFACTION OF ADIDAS
BATCH: 2018-2021

SUBMITTED BY: PROJECT GUIDE


NAME: ADITYA KUMAR NAME: KANIKA SHARMA
ENROLLMENT NO:00520688818 DESIGNATION: AST.PROFESSOR

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, NEW DELHI

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ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feelings towards my mentor who graciously gave me
her time and expertise.

She has guided me with the valuable guidance sustained effort and friendly approach. It would have been
difficult to achieve the result in such a short span of time without her help.

I deem it my duty to record my gratitude towards the project supervisor MS. Kanika Sharma who devoted
her precious time and interact, guide and gave me the right approach to accomplish the task and also
helped me to enhance my knowledge in understanding the project.

Signature Aditya
Kumar
00520688818
B.com(h), Ist shift, 2nd sem.

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CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project work “CUSTOMER SATISFACTION TOWARDS ADIDAS” made by
Aditya Kumar of B.com(h) Ist shift 00520688818 is an authentic work carried out by him under the
guidance and supervision of Ms. Kanika Sharma

The project report submitted has been found satisfactory for the partial fulfilment of the degree of bachelors
of communication

Project supervisor: Ms. Kanika Sharma


Signature:
Name:

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DECLARATION

I hearby declare that the following document project report tilled “COSTUMER SATISFACTION
TOWARDS ADIDAS” is an original and aunthetic work done by a particular fulfilment of Bachelors of
Commerce degree programme.

I hearby certify that all the endeavour put in the fulfilment of the task are the genuine and original to the best
of my knowledge and I have not submitted it earlier elsewhere.

Signature Aditya
Kumar
B.com(h) Ist year, Ist shift
00520688818

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INDEX

SO. NO CONTENT PG. NO

1 CHAPTER-1 INTRODUCTION

1.1) HISTORY 7
1.2) ADIDAS TODAY 15
1.3) EXCLUSIVE BOARD 16
1.4) AWARDS AND RECOGNITION 21

2 CHAPTER-2: RESEARCH METHODOLOGY

2.1) OBJECTIVES OF STUDY


2.2) SCOPE OF STUDY 25
2.3) DATA COLLECTION 26
2.4) SAMPLING DESIGN 27
29

3 CHAPTER-3: DATA ANALYSIS AND INTERPRETATION

3.1) GRAPHICAL ANALYSIS 31

4 CHAPTER-4: FINDINGS 42

5 CHAPTER-5: LIMITATIONS 44

6 CHAPTER-6: SUGGESTIONS 46

7 CHAPTER 7: CONCLUSION 48

8 BIBLIOGRAPHY 49

9 ANNEXURE 50

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CHAPTER-1
INTRODUCTION

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EXECUTIVE SUMMARY
The Adidas Group is one of the global leaders within the sporting goods industry, offering a broad range of
products around the core brands: Adidas, Reebok, Taylor Made, Rockport and Reebok-CCM Hockey.
Headquartered in Herzogenaurach, Germany, the Group has more than 46,000 employees and generated
sales of € 13.3 billion in 2011.

INTRODUCTION
Established in post-war Germany in 1949 (in its current form) by Adolf Dassler, the Adidas Group has been
synonymous with sports and sportswear for the last 60 years. The company has been part of many
significant sporting moments, including but not restricted to the 1954 and 1974 German victories in the
football World Cup, the recently in news Boston and Vancouver Marathons, and all World Cup and Euro
Cup footballs since 1970. The phenomenal growth of the company has been primarily off the back of
clever sponsorships of key athletes and teams, and also through the design of innovative new technologies.
For example, Adidas was the first footwear brand to develop football boots with removable studs in the
1954 World Cup, and more recently in 2005, the design of the first shoe with an in-built microprocessor
that can adjust itself as per the runner’s needs. Alongside this, their revenues have been growing roughly at
11% year-on-year with the latest financial reports of 2012 showing Revenues of €14.9 billion and Net
Income of
€526 million. Adidas Group counts amongst its brands the flagship “Adidas marque”, “Adidas Originals”
and “TaylorMade-Adidas” (golf range), amongst many others. In 2005, Adidas acquired Reebok for $3.8
billion, thus bringing it closer to its largest rival Nike in terms of Sales, and making it the number two
athletic shoemaker in the world. Apart from Nike, other competitors for adidas include Puma, Deckers,
Crocs and Callaway Golf (competing with adidas’ golf range – TaylorMade). The operating environment of
adidas is the sportswear and fashion industry, which has seen outstanding growth since the economic
recession. Worth less than $200 billion in 2008, it is projected to grow to $300 billion in 2017. This growth
provides tremendous opportunities for sportswear firms, both large and small, to expand and establish their
business in this arena. Most of the growth in this segment is provided for by the United States, Brazil, China
and Russia, who together account for 60% of the total growth. However, challenges for the industry still
remain in the form of market saturation in developing countries and the subdued economic environment.1 In
the following report, they analyse the corporate structure of adidas AG, and look at the firm’s Capital
Structure, Dividend Policy and the Firm Valuation. They 4 use their analysis to determine the stock value of
the firm and they compare that to the actual price at which the stock is trading.

MISSION
The adidas Group strives to be the global leader in the sporting goods industry with brands built on a
passion for sports and a sporting lifestyle. They are committed to continuously strengthening their brands
and products to improve their competitive position. Authentic: adidas is the first genuine sports brand. They
were founded by a true athlete whose one guiding principle was to make equipment that makes athletes
better. This is what made Adi Dassler Authentic then, this is what makes Adidas authentic today, and this is
what will always make them authentic. Passionate: Passion is at the heart of sport and of every true athlete.
Passion knows know borders, no age, no race and not time. Passion is what drives athletes to succeed and is
what drove Adi Dassler to make his first pair of athletic shoes in 1920. It is this same passion that will

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always guide adidas. Innovative: There is continuous innovation in every area of their business – from
product technologies that help athletes perform better to communications that help athletes understand their

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brand and their products. New ideas and solutions can be found in every office and department around the
world. Inspirational: Being inspirational helps build and maintain relationships with the athletes adidas
support. It is their emotional connection to their heritage, their athletes and to sport that inspires them to
create products and communications that, in turn, inspire others. Committed: Adidas commitment to their
athletes and sport is uncompromising, unwavering and forever. They will continue to sponsor, advice, listen
to and support athletes with the same resolve as Adi Dassler. Honest: At all times and in all relationships,
adidas is genuine, ethical and fair. Consumer focused: and therefore Adidas continuously improve the
quality, look, feel, and image of their products and their organizational structures to match and exceed
consumer expectations and to provide them with the highest value. Global organization: that is socially and
environmentally responsible, that embraces creativity and diversity, and is financially rewarding for their
employees and
shareholders. 5 They are dedicated: To consistently delivering outstanding financial results.

HISTORY
Adidas started in a wash room and conquered the world. And in-between, they have scored big and also,
sometimes, struggled to reach their goals. They have done their best for the best. They have improved and
grown. Looking ahead to the future, always remembering where they came from. This is their story.
1900-1949
THE EARLY YEARS
Every great story has a beginning. This one started in a small town in Bavaria, Germany. After first steps in
his mother’s wash kitchen, Adi Dassler registered the “Gebrüder Dassler Schuhfabrik” in 1924 and
embarked on his mission to provide athletes with the best possible equipment. Gold medals in Amsterdam
(1928, Lina Radke) and Berlin (1936, Jesse Owens) were first rewards and milestones – and only the start of
their story.

FIRST GOLD MEDALS

FOUNDING FATHER
On August 18, 1949, Adi Dassler started over again at the age of 49, registered the “Adi Dassler adidas
Sportschuhfabrik” and set to work with 47 employees in the small town of Herzogenaurach. On the same

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day, he registered a shoe that included the Registration of the soon-to-become-famous adidas 3-Stripes.
From humble beginnings to a global success story – this was accelerated by a miracle…

A MIRACLE IN BERN
Who would have thought that screw-in-studs on lightweight football boots would help write history? When
the German national football team faced the unbeatable Hungarians in the 1954 World Cup final, they won
so much more than just a trophy. Their unbelievable victory would be heard around the world for decades to
come. And it made adidas and its founder a household name on football pitches everywhere.
"WHAT A DASSLER"

REEBOK: A BROTHER-TO-BE, STILL MILES AWAY


Two brothers working together for the best of the athlete. Sounds familiar? Well this story started across the
channel, miles away from Herzogenaurach. While adidas continued to grow after its own 1954 miracle, two
British men by the names of Joe and Jeff Foster gave their grandfather’s company “J.W. Foster and Sons”
(founded in 1895) a new name: Reebok. Keep it in mind for now; they will get back to this later.

1967
FINE FEATHERS MAKE FINE BIRDS

What’s in a name? Everything, when you name it after a “Kaiser”. When the Franz Beckenbauer tracksuit
model celebrated its debut, it became the first piece of apparel for adidas and opened a whole new business
to a company that, so far, was famous for shoes.

THE ATHLETES’ TRUST

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How do you consistently earn the trust of world-class athletes through the decades? Produce innovative
products that make them better for once. Adi Dassler’s secret to success had an additional personal
ingredient: he met with athletes (some of them even as visitors in Herzogenaurach), listened carefully to
what they said and constantly obs erved what can be improved or even invented to support their needs. The
best of the best trusted adidas and its founder from the beginning. And that would not change throughout the
decades to come.

THE ATHLETES' TRUST

ONE BALL FOR ALL

Footwear for gold medal winners? Check. Apparel for record breakers? Check. Now, how about something
to kick with? Consider it done. In 1970, adidas conquered yet another branch of the sporting goods industry,
delivering the official ball, TELSTAR, for the 1970 FIFA World Cup™. As the name TELSTAR already
tells, the ball was designed to improve visibility on Black and White TV. It was the beginning of a
wonderful partnership, with adidas providing the Official Match Ball to every FIFA World Cup™ that
followed.

1971

OUT OF THE TRUNK, INTO THE WORLD – THE BIRTH OF ROCKPORT

The best businesses seem to come out of family. Across the pond, a father and son hit the US roads to sell
shoes out of their trunk. Saul and Bruce Katz started the first company to ever combine advanced materials
and technologies in casual footwear: Rockport. Again, this will be important later on.

THE TREFOIL AND THE OLYMPIC IDEA


In 1972, the world turned to Germany when the Olympic Games opened in Munich. Just in time for the
event, adidas presented a new logo that was here to stay: the Trefoil. Then, symbolizing performance.
Today, the adidas Originals collection stands for lifestyle and street. Times may change, but trefoil quality
will always remain

BECOMING A TRUE MULTI-SPORTS SPECIALIST


From Herzogenaurach to the world: the 3-Stripes kept expanding to more and more sports throughout the
years. This is reflected in the broad range of athletes who trust adidas to make them better: besides the usual
suspects such as the world’s best football players, like the Argentinean national team, outdoor icon Reinhold
Messner climbed mountains in adidas shoes and gymnast Nadia Comaneci scored a perfect 10, repeatedly.
BECOMING A MULTI-SPORTS SPECIALIST

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DEATH OF A SHOEMAKER
Adi Dassler died on September 6, shortly before his 78th birthday. The man who almost single-handedly
redefined the sporting goods industry and lifted the benchmark by a mile left behind a flourishing company.
The end of one Dassler era became the start of another: Adi’s son Horst, with support from his mother
Käthe, took over and – among many other things – continued to master his invention, the modern sports
marketing.

THREE IS NOT A CROWD – TAYLORMADE’S FIRST STEPS

What can you do with just three employees? Lay the foundation for a future market leader, for example.
While adidas continued its flourishing ways, Gary Adams and two colleagues started a company in
California that will produce metal woods tailored to make players better. TaylorMade will eventually
become market leader, proving that three is not always a crowd.

A BROTHER-TO-BE FINDING ITS WAY – REEBOK ON THE MOVE

30 years after Joe and Jeff Foster renamed their grandfather’s company, Reebok was fit to lead. Literally.
Following the booming fitness trend, women around the world work out in the Reebok Freestyle while
fitness professional Gin Miller became the face of Step Reebok. And that’s not all: THE PUMP innovation
hits markets in 1989, making Reebok a household name in other categories as well.

REEBOK ADVERTISING

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A COMPUTER FOR YOUR FEET

It sounds quite common today, but back in the ‘80s, a computer did not belong, much less fit, in your shoe.
Didn’t stop adidas from putting it in there. An innovation ahead of its time, the Micropacer featured a system
– known today as miCoach – providing performance statistics to athletes.

THE MERGE OF ARTS AND SPORTS

When US-based hip hop group Run DMC released “my adidas” it was about setting the record straight
about hard working people in troubled neighbourhoods and about pure enthusiasm about their sneakers.
Adidas itself only found out about this love story when the band held up the 3-Stripes shoes during a
concert in front of 40.000 fans – one of these concertgoers was an adidas employee. The song became a
hit and Run DMC and adidas unexpected and unique partners. This merge of art and sports not only set
the everlasting street fashion trend off but also marked the birth of nonathletic promotions in the sporting
goods industry.

RUN DMC AND ADIDAS

END OF THE FAMILY BUSINESS

Horst Dassler’s sudden death in 1987, two years after his mother Käthe passed away, meant troubled waters
for adidas. After the Dassler family exited the company, it is changing leadership and questionable strategic
decisions that caused a record loss in 1992 and brought the company near bankruptcy. But who does not
love a comeback story?

A SLEEPING GIANT’S NEW MASTER


Robert Louis-Dreyfus. The new CEO made an almost impossible job seem easy. Together with his partner
Christian Tourres, he understood that the almost bankrupt adidas did not need to be reinvented; it simply
needed a new direction. He turned the sleeping giant from sales- to a marketing-driven company and steers
adidas back on the growth path. In 1995, six years after becoming a corporation, adidas went public and its
new marketing slogan could not sum it up better: “They knew then, they know now”.

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INNOVATION NEVER SLEEPS


While the company was still dealing with financial challenges, a new marketing team refocused adidas on
what it has been known for years: making athletes better. Some of the most famous adidas innovations, such
as Torsion (1989), the Equipment concept (1991), the Streetball campaign (1992) and the Predator football
boot (1994), were born in this era.

A NEW TEAM MEMBER – SALOMON JOINED THE GANG


Back on the right track, adidas added a new member to its team. With the acquisition of the Salomon
Group and its brands Salomon, TaylorMade, Mavic and Bonfire, the company changed its name to adidas-
Salomon AG.

HOME SWEET HOME


The year the company’s share is admitted to the DAX, comprising Germany’s 30 largest quoted companies,
adidas-Salomon AG committed itself to its roots and moved into new headquarters just outside
Herzogenaurach. The “World of Sports”, a former US military base turned campus, is constantly renewed,
extended and modernized over the following years to house the growing company and its employees. As of
2013, the World of Sports is home to more than 3,000 adidas employees, offers outdoor sports facilities, a
cafeteria, a kindergarten and a gym.

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AN INNOVATIVE LEADER
Herbert Hainer became the new CEO of adidas-Salomon AG and, with him; the company’s focus went
even more to innovation. ClimaCool (2002), adizero (2004) and the F50 football boot, launched just in
time for the 2006 FIFA World Cup™ in Germany, became market hits – as did the new CEO. Herbert
Hainer will lead the adidas Group from one record to the next and will become the longest-standing CEO
of all DAX companies in 2011. Herbert Hainer is surrounded by a very international team of Executive
Board members. It currently consists of Robin J. Stalker from New Zealand (Finance), Eric Liedtke
(Global Brands) and Glenn Bennett (Global Operations), both from the USA, as well as Roland Auschel
from Germany (Global Sales).

NEW CENTURY, NEW DIVISIONS


As the new century started, the adidas Group reinvented the game again. In addition to its sport performance
offering, adidas is the first in the industry to introduce a new lifestyle segment, focusing on sports-inspired
street wear. In the years to come, new partnerships with Yoshji Yamamoto (2002) and Stella McCartney
(2004) were born along with exciting labels such as Y-3 (2003) and Porsche Design Sport (2007).

IMPOSSIBLE? JUST A BIG WORD.

In one of its most memorable marketing campaigns, adidas lets its biggest athletes including David
Beckham, Haile Gebrselassie and Muhammad and Laila Ali face their fears, defeats and challenges only
to prove that, indeed, impossible is nothing. The slogan became the synonym for reaching one’s goals.

SALOMON LEAVES THE TEAM, REEBOK JOINED THE FAMILY


One year after adidas and Salomon go their separate ways, when the latter and its brands (excluding
TaylorMade) were sold to Amar Sports, adidas acquired Reebok, including the brands Rockport and
Reebok- CCM Hockey, and brought together two of the world’s most respected and best-known companies
in the sporting goods industry. In June, the company was re-named adidas AG.

FINDING NEW TEAMMATES


When you are already great, how do you become even better? You keep on training. Or join forces with
someone who complements you and your strengths.

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In 2011, the adidas Group acquired the outdoor specialist Five Ten, and TaylorMade first the golf
company Ashworth in 2009 and then, three years later, the golf equipment company Adams Golf –
making the Group even stronger for the road ahead.

ON ROUTE TO NEW HEIGHTS


At the end of 2010, the adidas Group presented the most comprehensive strategic business plans in its
history. “Route 2015” incorporates special targets for all brands, sales channels and Group functions
globally. That same year, TaylorMade reached market leadership and became the biggest golf company
worldwide.

WHAT BELONGS TOGETHER COMES TOGETHER

From the court to the catwalk and the stadium to the street. The adidas brand offers apparel and footwear
for every sport, every fashion, every style, whether you are an athlete or fashionista. And in 2011, adidas
brought together sport, street and style for the first time in one campaign to tell the world what it means to
go all in, heart overhead, inclusion over ego. “All in” (featured by Lionel Messi, David Beckham, Katy
Perry and Derrick Rose) lived from the idea that, no matter your goals or challenges, you have to go all in
for the ultimate success.

REEBOK FOCUSES ON ITS FITNESS ROOTS

If it is already in your DNA, why reinvent the wheel? After Reebok dominated the fitness and aerobics wave
/ movement in the 1980s with ground breaking products and marketing, the company signs a long-term
partnership with CrossFit, core strength and conditioning program, in 2011. Two years later, the studio
categories Yoga, Dance and Aerobics followed and Reebok has been back on track to become THE fitness
brand with the goal to empower consumers to be fit for life. Or should they say REEbecome?

2013

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ENDLESS INNOVATION

Running changed forever. Big words. History will tell us if it is true. Adidas introduced the Energy
Boost running shoe which featured a completely new cushioning material. Created in cooperation with
the German chemical company BASF, the material combines former contradictory benefits of soft and
responsive cushioning for a running experience unlike any other.

ADIDAS TODAY

WELCOME TO THE NEW WORLD – A NEW DIGITAL FOCUS

As the world changes, so do they. While a computer in your shoe seemed a bit weird in the ‘80s, it now is a
professional training system: MI Coach allows athletes to track record and improve their performance in
sports, including football, running or basketball. It becomes a category of its own. On top, adidas launches
a new sub brand: adidas NEO targets the young generation with social tools such as a social mirror and the
opportunity to, literally, shop at the window with the touch of a button. And the 2012 London Olympic
Games become a happening on the adidas social channels, bringing behind-the-scenes events, competitions
and athlete news to the young consumer.

They do not know what the future in sports will bring but it will not stop us from shaping it. They will keep
pushing the envelope with continuous innovations. And more importantly: they will make sure that they
give you the tools you need to be the best athlete possible. Just how Adi wanted it.

ORGANIZATIONAL STRUCTURE OF ADIDAS

In 2000, Adidas announced revolutionary new three divisional structures. This structure had never been
followed by any other organization before. In this structure, Adidas divided its products into three divisions.
The divisions were named as “The Forever Sports Division”, “The Original Division” and “The Equipment
Division”. The divisions are dealt as separate organizations as all the three divisions produce different
product to cater the different segments of the society. The competitors of these divisions are also different.
Furthermore, these divisions have a network structure within them. This new structure of Adidas is a very
powerful tool to handle all sorts of uncertainties of the different markets.

FOREVER SPORTS DIVISION

The forever sports division spotlights “sports performance” products that Adidas aims at fashion oriented
customers. Forever Sports offers products that compete with Nike, Reebok, Fila and Puma.

ORIGINAL DIVISION

Original Division focuses mainly on leisure products. The division offers three product segments: Re-
introduced, or limited volume remakes of the classical goods; Reinterpreted, or updated products based on
Adidas’ “sport” version; and Re-designed, based on older Adidas styles, but as the company explains, “put
in

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today’s fashion context.” Adidas wants this division to compete with retailers such as Polo, Abercrombie &
Fitch and GAP.

EQUIPMENT DIVISION

The equipment division will be launched in winter 2002. This division will create multifunctional sports
products. The distribution of these products will be in chosen markets like Germany, France and the US.

Adidas has undergone this structural change but one of its divisions has still not hit the markets. This new
structure of Adidas will provide Adidas with the dynamic framework that it needs to aggressively expand its
businesses and will enable it to deliver significant growth rates in the coming years.

The term in office of all members of the Supervisory Board started with the end of the Annual General
Meeting of adidas AG on May 8, 2014. By rotation, the next Supervisory Board elections will be held in
2019. In accordance with the German Co-Determination Act (Mitbestimmungsgesetz - MitBestG) six of its
members are elected by the Annual General Meeting and six members are elected by the employees.

EXECUTIVE BOARD
Adidas Executive Board is composed of five members. Each member is responsible for a major business
area within the Group.

HERBERT HAINER - CHIEF EXECUTIVE OFFICER

I have been a passionate athlete and sports fan ever since I


was a little boy, playing football in my hometown. I also
have a passion for business. I used to work in my parents’
butchery as a kid and opened my own pub when I was a
student.

BORN-1954 in
Dingolfing (Bavaria),
Germany. NATIONALITY-German
EDUCATION-Degree in Business Studies
CV - Herbert Hainer

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ROLAND AUSCHEL - GLOBAL SALES

One of the adidas Group’s strengths is to value partnerships


and to bring them to new levels – be it with athletes, clubs
or customers. Helping my global team to develop such
strategic customer relationships as well as a future-oriented
distribution approach is a very exciting task for me.

BORN // 1963 in Bad Waldsee, Germany NATIONALITY-


German
EDUCATION // Degree in Business Studies (“Diplom-Betriebswirt”),
BA European Business Studies (UK),
MBA (US)
CV - Roland Auschel

GLENN BENNETT - GLOBAL OPERATIONS


Change is inevitable in just about everything we do in our
company. Having been associated with their brands for 30
years, I remain inspired and motivated by their team’s
ability to continually evolve and react to new business
opportunities and challenges in this ever-changing
environment we work in.

BORN // 1963 in New Hampshire,


U.S.A. NATIONALITY //
American
EDUCATION // Degree in Computer Science
CV - Glenn Bennett

ERIC LIEDTKE - GLOBAL BRANDS


BORN // 1966 in Dayton, U.S.A.
NATIONALITY // US-American

EDUCATION // Bachelor of Arts – Journalism


CV - Eric Liedtke

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IGOR LANDAU, CHAIRMA N

BORN // 1944
NATIONALITY // French
EXERCISED PROFESSION // Pensioner, Member of the Board of Directors, Sanofi -Aventis S.A., Par

SABINE BAUER, DEPUTYCHAIRWOMAN

BORN // 1963
NATIONALITY // German
EXERCISED PROFESSION // chairwomann of the Central Works Council, adidas AG

WILLI SCHWERDTLE, DEPUTY CHAIRMAN

BORN // 1953
NATIONALITY // German
EXERCISED PROFESSION // Independent Management Consultant, Partner, WP Force Solutions GmbH (in the cours

BORN // 1957
NATIONALITY // German
DIETER HAUENSTEIN
EXERCISED PROFESSION // Member of the Works Council, Herzogenaura

DR. WOLFGANG JAEGER

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BORN-1954
NATIONALITY-German

EXERCISED PROFESSION-Managing Director,


Hans-Böckler-Stiftung, Düsseldorf, Germany

DR. STEFAN JENTZSCH

BORN-1960
NATIONALITY-German

EXERCISED PROFESSION-Corporate Finance


Consultant, Partner, Perella Weinberg Partners UK LLP,
London, Great Britain
MANDATES

HERBERT KAUFFMANN

BORN-1951
NATIONALITY-German

EXERCISED PROFESSION-Independent
Management Consultant, Stuttgart, Germany
MANDATES
KATJA KRAUS
KATHRIN MENGES

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BORN-1970
NATIONALITY-German

EXERCISED PROFESSION-Managing Partner Jung von


Matt/sports GmbH, Hamburg, Germany

ROLAND NOSKO

BORN-1964
NATIONALITY-German

EXERCISED PROFESSION-Executive Vice President


Human Resources and Infrastructure Services, Henkel AG &
Co. KGaA
MANDATES

BORN-1958
NATIONALITY-German

EXERCISED PROFESSION-Trade Union Official, IG


BCE, Headquarter Nuremberg, Nuremberg, Germany
MANDATES
HANS RUPRECHT

HEIDI THALER-VEH

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B NATIONALITY-
O German
R
N EXERCISED PROFESSION-Sales Director Customer Service,
- Central Europe West, adidas AG
1
9
5
4

BORN-1962
NATIONALITY-German

EXERCISED PROFESSION-Member of the Central


Works Council, adidas AG *Employee
Representative

AWARDS AND RECOGNITION


Feedback and positive recognition is important to us.

Adidas value feedback from their stakeholders about their programme and they appreciate
positive recognition from international institutions and rating agencies, non-governmental
organizations (NGOs) and socially responsible investment (SRI) analysts. These organizations
evaluate adidas work through in-depth analysis of the company’s social and environmental
programme, including document review and interviews with employees and management.

The following awards demonstrate external recognition and acknowledgement of the adidas Group’s
sustainability initiatives worldwide:

 2014 – adidas Group among the "Global 100 Most Sustainable Corporations in the
World" for the 10th time in a row; first time in top 10 - ranked 8th
 2013 - adidas AG included in Dow Jones Sustainability Indices for 14th time - Industry
Leader for 10th time
 2013 - adidas AG again included in the STOXX® Global ESG Leaders indices
 2013 – Continued inclusion in the FTSE4Good Index
 2013 - Reconfirmed inclusion in the Ethibel PIONEER and Ethibel EXCELLENCE
Investment Registers

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 2012 - Inclusion in the Carbon Disclosure Leadership Index for Germany, Austria and
Switzerland
Inclusion in the Vigeo Group Indexes
Inclusion in the ECPI Ethical Index EMU
 2011 – Silver medal for adidas AG as 'Sustainable Retail Company 2011'
 2009 - Best rating by European consumer organizations
 2008 – Re-accreditation by the Fair Labor Association
 2007 – B.A.U.M. Environmental Award
 2006 – Product rated best for quality and CSR by Stiftung Warentest
 2006 – adidas Group among Top Employers of the Year
 2005 – Environmental Manager of the year
 2002/2004 – Best Sustainability Reporting

ADIDAS GLOBAL SALES

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CHAPTER-2

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

The process used to collect information and data for the purpose of making business decisions. The
methodology may include publication research, interviews, surveys and other research techniques, and could
include both present and historical information.

The whole research process by us is as follows:-

1) Problem formation

2) Search design

3) Sampling design

4) Source of data

4.1) Primary source of data

4.2) Secondary source of data

4.3) Collection of data

4.4) Analysis of data

4.5) Interpretation of data

4.6) Project report and writing

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OBJECTIVE OF THE STUDY

I am fulfilling the objectives of my curriculum. During this practical exposure of six weeks. I have collected
some important information about Adidas.

This is important for management. This increase penetrability in the market. In any marketing job this forms
one of the important tools and therefore known as utility of such a tool is definitely one of the important
aims of this study.

1) The main objective of the study is to present the conclusion and necessary suggestions
regarding consumer awareness.

2) The objective of study is to describe the unique characteristics of Adidas products in comparison to
others.

3) To collect the information of various products from customers.

4) The objective of the study is to develop sound inter personal relation to get maximum output
both customer and producer.

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SCOPE OF STUDY

1) To learn about strategy and strategic management of 2 companies of same industry.

2) The strategies have been compared on the basis of athletic footwear industry.

3) To study the demand of which company products are more and methods used by themto attract the
market.

4) To measure the effectiveness of advertisement / promotional activities for a competing product class and
corporate advertising.

5) To understand and measure various factors that affect brand-building, brand re-call andfinally the choice
of customers while buying it.

6) To know how they face their competitor’s strategies.

7) To learn, how this company have dealt with critical situations they faced in past.

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DATA COLLECTION

Methods of data collection

The key for useful system is selection of the method for collecting data and linking it to analysis and
decision issue of the action to be taken.

The accuracy of the collected data is of great importance for drawing the correct and valid conclusion from
the detailed investigation.

There are 2 types of data primary and secondary.

PRIMARY DATA

The primary data are those which are collected afresh and for first time and thus happen to be original in
character. There are several methods of collection primary data particularly in survey and descriptive
research.

Some important methods of collecting primary data are:

1) Observation method

2) Interview method

3) Questionnaire

4) Schedules

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SECONDARY DATA

Secondary data are used means that are already available i.e they refer to the data which have already been
collected and analysed by someone else and which have already been passed through the statistical process.
Secondary data may either be published or unpublished data.

1) Companies websites

2) Articles and reports available on web

3) Newspaper like Economic Times

4) Various other sources mentioned in references

5) Companies balance sheet

6) Companies profit and loss accounts

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SAMPLING DESIGN

Sampling technique used

Initially, a rough draft was prepared keeping in mind the objectives of the research. The information was not
very technical in nature. The final questionnaire was arrived only after certain important changes were
done. Thus, my sampling came out to be judgemental and convenient.

Sampling unit:

he respondents who were asked to fill the questionnaire are the sampling units.

Sampling size:

I have restricted the sample size to 50 respondents. This is done keeping in mind the time constraints and
facts that felt i.e number would be enough to serve the information needs to require to show the trends.

Sampling area:

the area of he samples size e research was Sec-18 Dwarka.

Time exact:

6 weeks.

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CHAPTER 3:
DATA ANALYSIS AND
INTERPRETATION

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GRAPHICAL ANALYSIS

A survey was conducted on 50 people and questions were asked as mentioned in ANNEXURE:1

Based on the survey conducted and its responses following are the outcomes:

AGE

AGE BRACKET PERCENTAGE

15-20 years 50%


25-30 years 38%
35-45 years 10%
45 years above 02%

Age of persons filling up the questionnaire

ANALYSIS: I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found that people who actually filled the form and showed interest in this project
was max between the age group of 15-20 years. 38% people belonged to the category of age group of 25-30
years, 10% felled in the category of 35-45 years and only 2% belonged to the category of age bracket above
45 years.

INTERPRETATION: it is clear that adidas is loved most by the teenagers falling the afe bracket of 15-20
years and least recommended by the elders above 45 years.

INCOME

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MONTHLY INCOME PERCENTAGE

BELOW 25000 39.6%


25000-45000 29.2%
45000-65000 25%
65000 AND ABOVE 6.2%

Income of the persons filling up the questionnaire

ANALYSIS I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found that 39.6% people belonged to the category of income below 25000, 29.2%
felled in the category of income of 25000-45000, 25% belonged to the category of income 45000-65000 and
rest 6.2% belong to the category of income 65000 and above
INTERPRETATION- it is clear that most of the consumers of adidas products are more income below
25000 and lest at 65000 and above

BRAND CONSCIOUS
BRAND CONSCIOUS PERCENTAGE

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NO 18%
YES 40%
CHOOSEY 22%
DEPENDS ON PARTICULAR PRODUCT 20%

CONSIOUSNESS OF PEOPLE REGARDING BRAND

ANALIYIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found that 40% of the people are brand conscious, 22%of the people said that they
are choosey,20% of the people are depend on a particular good and rest 18% say no to adidas
INTERPRETATION- it is clear that the most of the people are brand conscious.

HEALTH CONCERNED

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PEOPLE VISIT GYM PERCENTAGE


DAILY 24.5%
RARELY 24.5%
FREQUENTLY 24.5%
NEVER 26.5%

HEALTH CONCENERD POPULATION

ANALYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found 24.5% of the people daily visit the gym, 24.5%of the people rarely visit
to gym, 24.5% people frequently visit to the gym to and rest 26.5% people never visit to the gym.
INTERPRETATION- it is clear that most of the people do like to visit gym.

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BRAND PREFERENCE

BRAND PREFRENCE PERCENTAGE


PUMA 12%
ADIDAS 48%
NIKE 28%
REEBOK 12%

MOST LIKED BRANDS

ANALYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found 48% of the people are brand conscious, 28%of the people like Nike brand,
12% of the people like puma brand and rest 12% of the people like reebok brand.
INTERPRETATION-it is clear that the consumer like more product of adidas that any other brand.

REVIEW OF ADIDAS
REVIEW OF ADIDAS PERCENTAGE

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QUALITY 32%
VALUE OF MONEY 26%
DESIGN 18%
COMFORT 24%

REVIEW OF ADIDAS

ANALYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found 32% of the people like brand quality, 26%of the people said that they like
adidas because they have value of money, 24% said that the people like adidas because of comfort and rest
18% people like adidas because of design.
INTERPRETATION- it is clear that the consumer like adidas because of quality and least by design

FITTEST PLACE TO CARRY ADIDAS

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FITTEST PLACE TO CARRY ADIDAS PERCENTAGE


GYM 36.7%
TOGEATHER 34.7%
HOME 22.4%
OFFICE 6.2%

FITTEST PLACE TO CARRY ADIDAS

ANALYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found that 36.7% of the people like to wear adidas at gym ,34.7%of the people
said that they like to wear adidas products at get together, 22.4% of the people usually like to wear adidas at
home and rest 6.2% of the people like to wear adidas at office.
INTERPRETATION-it is clear that fittest place to carry adidas is gym.people love to wear adidas products
in gym

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POPULARITY OF ADIDAS

POPULARITY PERCENTAGE
LESS POPULAR 10%
POPULAR 44%
TREND SETTER 32%
NAME COMMON IN EACH HOUSE 14%

POPULARITY OF ADIDAS

ANALYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found 44% of the people says that the brand is popular, 32%of the people said that
adidas is trend setter, 14% of the people say adidas name is common in each house and rest 10% of the
people say that the adidas is less popular.
INTERPRETATION-it is clear that adidas is popular among the nation.

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MONEY VALUE

COMPARISION PERCENTAGE
REASONABLE 36%
COSTLY 36%
VERY CHEAP 20%
CHEAP 8%

ANLYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found that 36% of the people says that adidas is reasonable, 36% of the people
also says that the adidas is costly, 20% of the people say that the brand is very costly and rest 8% of the
people say that the adidas brand is cheap.
INTERPRETATION-it is clear that adidas that people found it to be affordable.

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PRODUCT FAVOURITE

PRODUCT PERCENTAGE
SHOES 48%
SLIPPERS 12%
ACCESSORIES 14%
CLOTHS 26%

PRODUCT FAVOURITE

ANALYSIS-I conducted my survey on 50 people and they all belonged to a different age group. From the
survey I conducted it was found 48% of the people are adidas brand shoes, 26%of the people said that
they like adidas cloths, 14% of the people like adidas accessories and rest 12% like adidas slippers
INTERPRETATION-it is clear that consumer like adidas shoes and least slippers

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CHAPTER-4
FINDINGS

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FINDINGS
This survey had a sample size 50. It was concluded that Adidas is most popular as 48% people voted for
Adidas as their favourite brand.
The people lying in age group of 15-20 years love the brand Adidas the most but its less popular among the
people of the age group above 45 years, thus Adidas is more proffered by the youth of the nation.
Income too plays a major role when you buy something which is Branded. The people with the income
below 25000 love to buy Adidas more of quality and value of money. The people with the income 65000
and above prefers other brands.
People love adidas the most because of its quality and value for money and they contribute 32% and 24%
respectively of the total interest of the surveyed people. 24% people like it for comfort and only 18% people
like for the design as they are limited in number and repeating too.
It was concluded that only 40% people were brand conscious, 22% of the people were choosy for the brands
and non-branded items but 20% people prefer brand only for a particular good or product.
Out of the surveyed people 24.5% people think that the fittest place to carry Adidas is the gym while 34.7%
says its apt for get together and its branded and stylish.
Most preferred good of Adidas is shoes as it got 48% vote, cloths were preferred by only 26%, accessories
by 14% and slippers by only 12%.

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CHAPTER: 5
LIMITATIONS

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LIMITATION OF THE PROJECT

Although it has been my endeavour to take all necessary precaution to insure that the information gathered is
authentic and maximum facts are presented but I faced certain constraints while doing so. The constraints
and limitation faced are mentioned below:

1) TIME
The nature of the report required detailed and meticulous information gathering. In this sense time was a
limiting factor and major constraint to accomplish the given task. Also sometimes information was not
available on time. this caused a lot of pilferage of time unnecessary of duplication of efforts.

2) HUMAN ERROR
The feedback is provided by the consumers and the local people.
Approach has been assumed to be correct. But there might have been wrong and biased facts given. The
opinion of few cant be generalised in any manner.

3) CALCULATION ERROR
The report required calculations of figures and last have to analyse them too, so mistake can arise during
calculation.

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CHAPTER: 6
SUGGESTIONS

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Some useful and suggestions according to me and by the people in the survey are:-

1) PRICING:
Adidas is a bit expensive and therefore half of the people can’t afford it. If Adidas lowers down its price a
bit and gives more discount its sale will definitely shoot up and profit will increase. Adidas today though has
become a popular brand but not easily affordable.

2) PATTERN AND STYLE:


Adidas is a big brand but its pattern usually repeats itself. It should come up with more new designs because
in the world of fashion today it’s the style that matters the most. Adidas should include more patterns more
styles and more colours into it.

3) TARGETING EVERYONE:
Adidas is most popular among teenagers only and least popular amongst elders and people falling in the age
bracket of senior citizens. If adidas makes something simple and sober, something in a big size so that every
individual can carry them out.

4) NOT TO FOCUS ON JUST GYM:


Adidas is most popular in gyms and not other occasions. As adidas manufactures tshirts, lower and shoes the
most along with sports equiptment people find Gym only to carry this Brand. If adidas makes something
which is more trendy and can be carried out in parties then its sale will definitely shoot up.

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CHAPTER: 7
CONCLUSION

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Conclusion
Foreign brands occupy the dominant position of China's sporting goods market. Nearly half of the
customers were loyal to Adidas. And the price of the sports goods brand was the highest in similar products,
stating that the ability to buy high-end brand of college students was strong. There was a higher proportion
of high- end brand loyalty. The ration of customer loyalty to Lining was close to Adidas. Some sports
brands in domestic can compete with foreign brands. The customer loyalty was formed through the
accumulation of perceived quality, customer value, and customer satisfaction. Perceived quality was
positively correlated with customer value, but the correlation coefficient was small, which showed that the
quality of perception had positive effect on customer value, and other factors also play an important role in
customer value.
Customer value and customer satisfaction were positively correlated, and the correlation coefficient was
large, which illustrated that the customer value had an important effect on customer satisfaction. Customer
satisfaction and customer loyalty were positively correlated, and the correlation coefficient was also large,
which explained that customer satisfaction had an important effect on customer loyalty.
High technology and high-quality support the brand development. For example, Nike and Adidas, the brand
is “JUST DO IT”. That is their constant innovation. At present, China's sporting goods mostly rely on
processing and imitation. Technological content of products is low. As a result, enterprises produced low-
grade products, failed to investigate and analyse the market demand, and finally, without designing the
world's leading brands of products. It is said that the domestic low-end market is potential for development.
However, if there is no obvious difference in the characteristics of the product, with foreign sports goods at
the same price level has no comparative advantage, in the face of famous brand challenges, our brand will be
difficult.
China's sporting goods enterprise products is single, lack of core products, enterprises cannot accurately to
the brand positioning, will not be able to let people have a deeper understanding of the brand duplication.
Market for some products need to be developed and undeveloped or there is a great development space, but
failed to grasp the enterprise. Nike and Adidas in the early stages of its brand recognition has a clear market
positioning. In the fierce competition with other brands, in the premise of ensuring that the original brand is
not the core of the premise of constant innovation of products. Adidas is a football series. While the
domestic sports brand is simply the pursuit of fashion creation, sports atmosphere is not strong, the lack of
core products.

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BIBLIOGRAPHY

BOOKS MATERIAL

1) Philip kotlan journal

2) Adidas spring summer 2018 catalogue

3) Walter N., CleT. And Chu G. (2013) Vol. 2 (January), 130-144

WEBSITES

1) Adidas group official website

2) adidas Group. "adidas - Products." Welcome to adidas. adidas Group.


<http://www.adidas.com/com/performance/products.asp>.

3) Adidas-group.com. (2016). adidas Group to accelerate growth until 2020. [online] Available at:
http://www.adidas- group.com/en/media/news-archive/press-releases/2015/adidas-group-accelerate-growth-until-
2020/

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ANNEXURE:1

QUESTIONNAIRE

1) In which age bracket do you put yourself?

1) 15-25 years

2) 25-35 years

3) 35-45 years

4) above 45 years

2) Are you brand conscious?

1) no

2) yes

3) choosy

4) depends on brand for a particular good only.

3) Which brand do you prefer the most?

1) puma

2) Adidas

3) nike

4) reebok

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4) How often do you visit gym?

1) daily

2) rarely

3) frequently

4) never

5) What do like the most about Adidas?

1) quality

2) value for money

3) design

4) comfort

6) What kind of product you like most about Adidas?

1) shoes

2) slippers

3) cloths

4) accessories

7) Which is the fittest place to carry Adidas?

1) gym

2) get together

3) home

4) office

8) How popular do you think Adidas is among people?

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1) less popular

2) popular

3) trend setter

4) name common in each house.

9) What is your monthly income slot?

1) below 25,000/-

2) 25,000-45,000/-

3) 45,000-65,000/-

4) above 65,000/-

10) How would you rate it in comparison of value for money?

1) reasonable

2) costly

3) very costly

4) cheap

11) Any suggestions or views regarding Adidas?

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