INTRODUCTION:

Adolf Dassler was inspired by a single idea when he made his first shoes in 1920, at
the age of just 20. His vision was to provide every athlete with the best footwear for
his respective discipline. It was this principle that guided him right up until his death
in 1978.
The breakthrough came for Adi Dassler when Germany won the Soccer World Cup in
1954. In the legendary Final against Hungary, the German team wore boots with
screw-in studs by adidas.
From the mid 1960s, adidas also started producing apparel for competition and
training. Ball production began in 1963, and ever since 1970 the Official Match ball at
all major soccer events has been an adidas product
Producing top products in top quality again became the companys guiding principle.
In 1991, adidas launched adidas EQUIPMENT, a line of performance-oriented,
functional footwear and apparel.
On January 31, 2006, Reebok International Ltd. was acquired providing the new
adidas Group with a footprint of around 9.5 billion ($11.8 billion) in the global
athletic footwear, apparel and hardware markets.

Contd...
Market Cap $22.76 B As of May 2014
Industry: Shoes/Apparel/Accessories
Founded: 1920
Country: Germany
CEO: Herbert Hainer
Website: www.adidas-group.com
Employees: 50,728
Sales: $19.24 B
Headquarters: Herzogenaurach

Forbes Lists (2014 A.D)

#522 Global 2000
#487 in Sales
#611 in Profit
#1264 in Assets
#488 in Market value
#61 World's Most Valuable Brands
#92 Innovative Companies (2013) (#93 in 2012)
Profile
Adidas is engaged in the production and manufacture of sportswear and sports
equipment. Its brands include adidas, Reebok, and TaylorMade-adidas Golf.

Contd...
The name of this company stands
for, All Day I Dream About Soccer.
At the beginning, Adidas made only
soccer shoes.
Slogan :

Mission , Vision & Objectives of the

company:
Mission of Adidas
Mission of Adidas is to be the best sport brand in the world offering
the best products and services . Adidas aims to come up as a
socially and environmentally responsible organisation that
embraces creativity and diversity and reward its employees and
shareholders.
Vision & objectives
To lead in all areas of the sport industry
To develop the market for sport goods and services
To be perceived as the leader of sports products/services in the
industry
Be the company teams, association, athletes, customers
,consumers wants to be associated with.
Set standards of sport industry
To consistently deliver outstanding financial results
Be the place where people want to work, recognized for its
employees development and working environment

Company Structure on
Brand Basis:
ADIDAS GROUP

Rockp
ort

Adidas

Reebok

Taylor
Made
Adidas
Golf

DIFFERENT PRODUCTS OF
ADIDAS:

ADIDAS AND ITS SBUS:

ADIDAS

SHOES

CLOTHIN
G&
APPAREL
S

ACCESSOR
IES

TYPES OF SHOES FROM

ADIDAS:

Adidas classic shoes

Adidas running shoes
Adidas superstar
Adidas soccer shoes
Adidas basketball shoes
Mens Adidas shoes
Adidas tennis shoes
Adidas casual shoes

Contd...
Adidas
Footwear, apparel and accessories such as bags and balls.
Reebok
Footwear, apparel and hardware
Rockport
Dress, casual and outdoor footware, Apparaels and
Accessories
TaylorMade-adidas Golf
Golf Equipment: metalwoods, irons putters, golf balls,
footwear, apparel and accessories.

Why adidas brand is the global leader in sporting goods and shoes
industry?

They are committed to strengthen their

brands and products
They are innovative and design leaders
They are consumer focused
They are global organization
They are dedicated to consistently
delivering outstanding financial results.

PEST Analysis:

Contd...
Political:
Adidas policy is to control and monitor Hazardous substance to
protect human health and environment. Adidas protects and
supports the rights of its employees by following all the current
employment laws. Adidas specially for Asian region has a separate
monitoring department for washing stations and disinfectant units.
Economical:
As a multinational company adidas helps countries to decrease
unemployment by increasing every year the number of employees.
The industrial production in germany was 1% in 2001-2003, in 2004
it became 1.7%. adidas is a reason of this increase because of the
big sponsorship in 2004 olympic games. Labour salary is high in
Europe in comparision to asia which is the reason that most of the
manufracturing plants of adidas are in asia; specially in china which
helps in monetory value addition to shareholders.

Contd...
Social:
Adidas products declare in any race, age, religion and
lifestyle always in fashion with special design in any of
the product. Focus in people who like sport and athletes,
almost everybody can purchase adidas products.
Technological:
Adidas join into technology by producing worlds 1 st smart
shoes, adding a microchip inside the shoe and wireless
MP3 player. The packaging that company uses , are
suitable for transportation over long distance , humid
condition and extreme temperature changes and use
recycled paper and other environmentally friendly
packaging materials.

MARKET SHARE OF ADIDAS:

CORE COMPETENCIES AND KEY

CAPABILITIES:
Core
Strategic
Innovations
competencies
Integrated Research
and development
Distribution Network
Supplier relations
Efficient Employees
Good Reputation as
mid-priced brand in
industry
Diverse brand
portfolio

Outsourcing
Key capabilities
capabilities
Product design
capabilities
Supply chain
capabilities
Effective distribution
capabilities
Financial control
Diversification
capabilities

Strategies:
Diverse brand portfolio
Focus on high Potential markets and
channels
Creating a flexible supply chain
Leading through innovation
Sustainability
Expand internationally

Porters five forces:

Barriers to Entry LOW

Bargaining power of buyers- HIGH
Bargaining power of suppliers- LOW
Threats of substitute LOW
Rivalry among Existing CompetitorsHIGH

SEGMENTATION:

Adidas, the largest sportswear manufacturer in Europe and the second biggest
sportswear manufacturer in the worldmarketsby looking at buying attitudes and
buying practices of different people. The sellers design a separatemarket program for
each
buyer.
Adidas
mainly
focuses
on
demographic,
geographic
andpsychographicsegmentation's. So Adidas develops their brand in 3 different
styles of segmentation.

Demographic segmentation
It refers to dividing the market into groups based on demographic variables, such as
sex and age. This method has long been used in clothing market. Adidas brands
products into range of male, female and kids, according to age and life cycle
segmentation and gender segmentation. Adidas has a branded range of male and
femaleclothing, shoes or body-careandeye wear. Performance, originals and
styleare all three brands of Adidas.

Psychographicsegmentation
It is used to divide the market into groups based on social class, life style or
personality characteristics. Adidas focuses on social class because people within a
given social class tend to have similar buying traits. Companies also use income,
gender, ethnic, and family life cyclesegmentation's to distinguish their market but
Adidas keeps it a little less complicated and more wide ranged so the brand is
marketing to many different people all over the world.

Contd...
Geographic segmentation
Geographic marketing allows Adidas to market
specific products to certain places throughout the
world. For example Adidas soccer cleat
commercials and ads are seen more in europe as
opposed to america because soccer isn't as
popular or as publicized in The United States as
european and other external countries.

TARGETING:
According to Adidas Group, Adidas is primarily targeting
sports participants, including those at the highest level
of their sport, as well as non-athletes who are inspired
by or really love sports. Adidas has a long history of
providing athletic footwear and apparel for athletes at
all levels of sport.
As detailed in its strategic positioning statement,
Adidas' strongest consumer market is with the 15- to
30-year-old age group who are athletes or are
passionate about sports. The company is focused on
targeting and strengthening its brand with the next
generation of athletes. Adidas believes this target group
is the most influential consumer group in the world.

POSITIONING:

Passion , elegance and durability

Focused on shoes
Europes No. 1 shoes brand
Worlds No. 2 sports shoes brand
Repositioning- inspiration, honesty &
commitment

Competitive Analysis:
The main competition for Adidas
brands and products come from the
products and brands of Nike, Puma,
Converse
Due to the availability and
distribution of substitutes product
the consumers are sometimes shifted
towards the competitors products.

Contd
The main competitor of Adidas in the
market is Nike which has a market
share of almost 33%.
Other competitors smaller than Nike
such as new balance and Puma are
operating in United states and
European countries.
In Asia Li-Ning(china) is main rival
present who mainly deals in the
athletic shoes.

Contd
Suppliers Behavior: They hold a
power in the market as they have
more options to produce for a large
number of companies.
Complementary products: Signing
contracts with different companies to
provide complements for its
products.

Contd

SWOT ANALYSIS:

Competitive Advantage:
Creation of high level of customers
involvement and loyalty.
Getting regular Customer feedback
through questionnaire and other
means of survey.
Brand endorsement by Celebrities
and top athletes.

ADIDAS MARKETING 4 PS:

Product:
Adidas group has a diverse product portfolio
which consists of:
Adidas: footwear, apparel and accessories;
Reebok: footwear, apparel and accessories;
TaylorMade Adidas Golf: Golf Equipment,
footwear, apparel and accessories; Rockport:
Dress, casual and outdoor footwear, apparel and
accessories; CCMHockey: Hockey equipment and
apparel.

 Price:
The target customer for Adidas is the
upper middle class as well as high
end customers.
Adidas constantly use skimming
price and are higher priced.
Adidas rarely drops its prices.
Adidas uses competitive pricing
keeping in mind competitors like Nike
and Puma.

 Place:
The major areas in which Adidas is sold is
through retail outlets.
Adidas has its own exclusive stores in which
the material is provided directly from the
company.
Many multi brand showrooms will also have
Adidas apparels and footwear on display.
The products are sold through online
medium via fashion stores like myntra.com
as well.

 Promotion:
Concentrated on television and product placements.
The tagline of Adidas Impossible is nothing is in itself
a very powerful statement for the brand.
Ties up with the top players across the world such as
Lionel messi, Ronaldinho, Sachin tendulkar and various
others.
The group has set up an unparalleled portfolio of
promotion partnerships with international recognised
sports associations (e.g. UEFA, FIFA, NBA, NFL, and
NHL). Henceforth, commercials, ads, apps for
smartphones, product placement, sponsorships for
athletes and sport events (e.g. Berlin Marathon 2011)
are implemented.

SUGGESTIONS:
They are targeting only sport lovers
from their segments, they should
also target other segments apart
from sports lover.
Currently Adidas is focusing only on
European Market but they should
segment their market on
geographical basis also, specially
focusing countries outside of Europe.