PROJECT REPORT ON

THE STUDY ON MARKET POTENTIAL & CUSTOMER SATISFACTION OF ADIDAS

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

Master of Business Administration (Marketing)

UNDER THE GUIDANCE OF

UNDER THE SUPERVISION OF

SMU Faculty

Mr. Mukes Vinayak

TSI (Adidas)

SUBMITTED BY
PURNENDRA SINGH
1205031440

2012-2014

CERTIFICATE
This is to certify that the project work done onTHE STUDY ON MARKET POTENTIAL
& CUSTOMER SATISFACTION OF ADIDAS SHOES is a bonafide work carried out
by Mr. PURNENDRA SINGH under my supervision and guidance. The project report is
submitted towards the partial fulfillment of Two year, Part time Sikkim Manipal University.
This work has not been submitted anywhere else for any other Degree/ Diploma.

Name &sign (Company guide)

guide)

PURNENDRA SINGH
1205031440
Date -2/02/2014

Name &sign (Faculty

ACKNOWLEDGEMENT
Interdependence is a higher value than
independence
Some Says Managers are born and some says managers are
made. I was also in some dilemma before commencing my
Summer

Internship

Project.

But

after

the

successful

completion of my internship project, I came to know that

managers are made if they are guided properly and are
motivated to work willingly towards fulfillment of specific
goal.
It is with a sage sense of gratitude, I acknowledge the efforts of
whole hosts of well wishers who have in some way or other
contributed in their own special ways to the success and completion
of this summer internship project.
First of all, I express my sage sense of gratitude and
indebtedness to my Manager, Mr. S.P.Panday of from the bottom
of my heart, for his unprecedented support and faith that I do the
best and his valuable recommendation and for accepting this
project.
I sincerely express my thanks to our Retail operation Head Mr.
Bhaskar Banarjee

for his valuable guidance and intellectual

suggestions during this project.

Also, I also express my sincere thankfulness to my mentor Mr.
SANJOY SIR for their kind advice, suggestions and constant help in
a lot of various ways during project course.

Further I express my sage sense of gratitude to Mr. Deepak

Agarwal, Regional Manager of Planet Retail Ltd (Future group) and
Mr. Mohd. Arshi, who were kind enough to give an opportunity to
work under their immense expertise. I sincerely thank to both of
them for their valuable suggestions, motivation and encouragement.
I express my thanks to the Adidas Supporting Team, for their
support and encouragement in bringing out this project report.
I would be failing in my duty if I dont express my profound
gratitude to the entire respondent who has spent their valuable time
to answer the questionnaire.
Last but not the least; I would also like to expand my thanks to
all faculty members of SMU, who have helped a lot during the course
of my project.
Finally, I sincerely express my thanks to all my friends and the
Staff members of Web Uni for their support.

Purnendr
a Singh
(Roll No.: 1205031440)

DECLARATION

I, PURNENDRA SINGH OF Sikkim Manipal University hereby declare

that this project report entitled The Study on Market Potential &
Customer Satisfaction of Adidas Shoes at Saharaganj ,
Hazratganj for Adidas , lucknow is a bonafide record of work done by
me during the course of summer internship project work of MBA Distance
program and all contents and facts are prepared and presented by me
without any bias.
I also declare that it has not previously formed the basis for the award to
me for any degree/diploma associate ship, fellowship or other similar title,
of any Institute/Society.

PREFACE
I want to express my gratitude for the experience and practical
knowledge that I gained during the summer internship project at Adidas
Store. It was my first experience when I went to the Store not to buy
anything but to do the survey and to Study of Market Potential and
Customer Satisfaction of Adidas Shoes at Saharaganj, Hazratganj,
Lucknow with reference to Adidas retail India Ltd. The basic need of this
survey is to interact with customers. On first day I was nervous, but
because of the good image of the Adidas in the market the people reacted
positively.
For accomplishment of the project report I think about the
conditions and views and then I used to compose the whole thing on
computer. In making the project report theoretical knowledge was needed
more than the practical which was given to us by my professors in my
institutes. In the market the experience relating to the practical
knowledge was very good which realized me about the real conditions of
the retailing.
The project flows logically consisting of market research, data
collection method and questionnaire. It hoped that the findings and the
suggestions will help the company, confidently to formulate its strategy in
comparison to its competitors. I have enjoyed my summer internship at
Adidas and have learnt lots of new things, which will be helpful to me
during my work in any organization. I thank Adidas for giving this
opportunity at their store and being good to me all the time.

I am please to work in this esteemed organization. I have tried

my best to make this report a reader friendly & also did my level best to
fulfill the objective of the summer training.

Lastly I am giving thanks to SMU family who gave me their

precious time to make project successful.

Place:
PURNENDRA SINGH
Date:
TABLE OF CONTENTS
SrNo

Particulars

PageNo

Introduction

2.1

Introduction to Adidas

2.2

Aims
and
company

2.3

Types of product/ services offer

2.4

Objective of the study

establishment

of

the

8
9

Methodology

11

3.1

Research Design

12

3.2

Sampling Design

13

3.3

Data Collection

14

Analysis And Recommendation

15

4.1

Data Findings and Analysis

16

4.2

Recommendation

18

4.3

Limitation of study

4.4

Overall experience

4
5.1

Annexure

20

Bibliography

28

Retailing Customer is
King

A Customer is the most important visitor on our premises. He is not dependent

on us. We are dependent on him. He is not an interruption on our work. He is the
purpose of it. He is not an outside of our business. He is a part of it and we are
not doing him a favor by servicing him. He is doing us a favor by giving us an
opportunity to do so.

Ma
hatma Gandhi

Some Published issue of Retail

Industry

The retail industry is expected to grow into a USD 427 billion industry by
2010- FICCI.

Indias retail industry, which is in the middle of rapid growth, has already
scripted success stories fit to be the subject of a Bollywood film-Business
Standard.

The impact of organized retailers that have seen swarming of malls lately, on
the mom-n-pop stores in 20 Indian cities- Indian Council of Research in
International Economic Relations (ICRIER).

Modern Retailing Comprehensive policy vital- The Hindu

Retail boom triggers ancillary industry growth- The Times of India

The Indian Macro

Economy

Tops AT Kearney list of emerging markets for global Retailers to enter.

2nd Fastest growing economy in the World and 50% of the total GDP led by services
such as IT, telecommunications, healthcare and retailing.
GDP growth rate for the year 2007-08 ended at 9.4% (in 1 st quarter) and current GDP
(6 %) is better than China and other developed country.
Reserves crossed the $150 billion mark, showcasing India as one of the top ten
holders of Foreign exchange reserves.
Population 1000+ Million 50 Million Rich and 300 Million Middle class
65% of population below 35 years and 54% below age 25 years
Working population in India is growing like most other developed countries.
China has issues of median age 30-34 years at the early stage of development and
psychology issues after implementation of one child policy
Housing Boom due to nuclear family, low interest rates, tax benefits from
government and lastly strong Indian values driven by savings and owning home
Economy - 4h largest economy in the world on PPP basis (next only to USA, China
and Japan) -One of the fastest growing economy with 6.5% average growth in GDP
for last 10 years and is expected to rank 3rd by 2010, just behind the US and China
Fragmented retailing with 5 million retailers and 95% less than 500 sq ft nation of
shop-keepers -brilliant trading and entrepreneur community
Over 3.9 million tourists visited India this year, up from 3.0 million last year.

India is on the track to be the servicing capital of the world (As China is
manufacturing capital) and Organized retail growing at 25-30%+ p.a. compound
growth.
IPL has again drastically changed the outlook of the whole world towards India. It has
the highest paid players across the Globe / Sports.
Real Estate & Retailers in India are the most aggressive in Asia in expanding their
businesses, thus creating a huge demand for real estate. Their preferred means of
expansion is to increase the number of outlets in a city and also expand to other
regions.
Driven by changing lifestyles, strong income growth and favorable demographic
patterns, Indian retail is expanding at a rapid pace.
Besides the 6 metros, India has 61 other cities with populations greater than 0.5
million and contributes about 14% to the countrys GDP.

India Vs World

Indian retail is fragmented with over 12 million outlets operating in the country which

is 13 times more the all retail outlets operating in USA (0.9 million outlets).
India has the highest number of outlets per capita in the world - widely spread retail

network but with the lowest per capita retail space (@ 2 sq. ft. per person)
Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size
of Indian retail industry. Almost 100 times more than the turnover of HLL (India's

largest FMCG Company).

Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's
large format store (Spencers, Big Bazaar, Shoppers' Stop, Westside, Lifestyle) can

compare.
The Wal-Mart sales per hour of $22 million are incomparable to any retailer in the
world. Numbers of employees in Wal-Mart are about 1.3 million where as the entire

Indian retail industry employs about three million people.

One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of

HLL's annual turnover.

Developed economies like the U.S. employ between 10 and 11 percent of their
workforce in retailing (against 7 percent employed in India today).

60% of retailers in India feel that the multiple format approach will be successful here

whereas in US 34 of the fastest-growing 50 retailers have just one format

Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an
average inventory turns ratio of about 18. Many Indian retailers have inventory turns

levels between 4 and 10 - KPMG surveyed.

Global best-practice retailers can achieve more than 95 percent availability of all
SKUs on the retail shelves (translating into a stock-out level of less than 5 %).The
stock-out levels among Indian retailers surveyed ranged from 5 to 15 percent.

1. Executive Summary

Executive Summary
Retailing is emerging as a sunrise industry in India and is presently largest
employer after agriculture. Some economists say that Retailing is one of the
pillars of the economy in India, and some say it is gold mine of Indian economy.
Retailing in its present form started in the latter half of 20 th century in USA and
Europe. Retail industry is divided into organized and unorganized sectors. Over
12 million outlets operate in the country and only 5% of them being larger than
500 sq ft (46 m) in size. Organized retailing in India is projected to grow at the
rate of 25-30% p.a., is estimated to grow from the US $ 330 billion in 2007 to US
$ 427 billion by 2010 and US $ 637 billion by 2015. Indian Retail Sector is
growing very fast with so many new players are coming in this growing organized
sector and trying to attract customers by giving attractive offers and offering
competitive prices etc.

Adidas Retail India Ltd is Indias leading retailer that operates in multiple
formats. We have offices in more than 55 countries and 50 nationalities
represented amongst our staff at the Groups Headquarters in
Herzogenaurach, Germany. We have more than 150 subsidiaries and
source products from a multi-tiered external supply chain in more than 60
countries.
The motive of the study is to know the market potential at Hazratganj,
Lucknow with reference to EBO & find out the customers perception about
EBO & what are the customers expectations from Adidas. The main
purpose of the study is to find out the target customers, preferences of
the customers and sales potential with reference to Adidas.
The study is done with the help of primary data given by respondents
during survey and secondary data to know the market potential and
customer Satisfaction of Adidas Shoes at Saharaganj, Lucknowt with
reference to Adidas, and also to understand the current market position of
Adidas at that area and know the potential customers. This study is done
with the help of area mapping and catchment analysis technique. Primary
data is collected through personal interview using structured
questionnaire and secondary data is collected from management of the
Adidas Retail India Ltd, various book, journals and Adidas website.
Hazratganj is a developed area of Lucknow and it consists of all classes of
families. Most of the families belong to Socio Economy Class (SEC) A & B.
Most of the residents fall in to age group 18-45. Most of the families have
4 to 5 members in their families. Residents are well educated and holding

jobs. Their monthly incomes are ranging from 10,000-20,000 and above.
Approximately 86.5% people visit Supermarket for shopping and 50.75%
people visit to Adidas. From the above data it can be observed that there
is not potential for good market opportunities for EBO.
The reason for visiting EBO as mentioned by the respondents varied from
better services to pricing to variety of products available with the EBO.
44.75% respondents visit super markets for the lesser prices offered by
the super markets and 46.75% mentioned that the quality of product
provided by the EBO is the reason for their visit to EBO.
The other factors which attract the respondents to various EBOS are
variety of products offered, new products like new stylish shoes and
Apparels, availability of Accessories, exchanging policies, accepting debit/
credit cards, fast billing, booking counters, customer service, courteous
and friendly behavior and ambience.
Most of the customers complained regarding customer service, variety of
product with deep assortment, store image, arrangement of products,
pricing, product knowledge of employee, quality of products, product
updation, opening time at Saharaganj with reference to Adidas.
Company can enhance its business or increase its sales by doing these
things; provide better customer service than its competitors, increase the
variety of merchandise with deep assortment, arrangement of product
should be in proper way that creates good store image, provide innovative
product like as Jerseys , shoes etc to the customers. Company should also
include apparels segment in the store, should advertise through
pamphlets about various offers, provide extra space for merchandise and
employ knowledgeable sales staff.
This study helped me a lot for analyzing the market, understanding retail
business and how to respond in critical situations. Findings and
suggestions/recommendation of this report might be helpful for the
company to improve its performance and business.

2. Introduction to retailing

Introduction
The word retail has its origin in French word retaillier and means to cut a piece off or to
break bulk. The term Retailing is defined as All activities involved in selling goods and
services directly to final consumers for their personal and non-business use. In simple terms,
it implies a first-hand transaction with customer. Retailing involves a direct interface with the
customer and the coordination of business activities from end to end right, from the concept
or design stage of a product or offering, to its delivery and post delivery service to the
customer. The industry has contributed to the fastest changing and dynamic industries in the
world today.
Retailing, it is an emerging trend in the India and Hyderabad is not far behind which is also
witnessing the stupendous growth and opportunities presented by this sector. Many
institutions- Manufacturing, Wholesalers and retailers do retailing, but most retailing is
done by Retailers. A business wholesales come from primarily from retailing. It is a proven
fact that in India the retail industry has become the 2 nd largest employer after agriculture.
Indian retail sector is in boom period and many reasons are contributing to it.
The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12
million retail outlets of various sizes and formats. Almost 95% of these retail outlets are less
than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US
figure of 16 sq. ft. Thus Indias per capita retailing space is the lowest in the world.
With more than 9 outlets per 1000 people, India has the largest number of outlets in the
world. Most of them are independent and contribute as much as 95% to the total retail sales.
Because of the increasing number of nuclear family, working women, greater work pressure
and increased commuting time, convenience has become a priority for the Indian consumers.
The growth and development of organized retailing in India is driven by two main factors
lower price and benefits the consumers cant resist. According to experts, economies of scale
drive down the cost of supply chain, allowing retailers to offers more benefits offered to the

customers. Globally, retailing is customer-centric with an emphasis on innovation in

products, process and services. In short, the customer is the king.
The Indian retail market is the 5th largest retail destination globally. It is estimated to grow
from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015.

In Saharaganj, Adidas Performance came up as the organized retail outlet in the form of a
E.B.O in the year 2005, with its inception in Lucknow, shopping got an altogether new
meaning in Lucknow. Some of the striking features of Adidas small store and different
formats having nice store image, along with soothing music and luring visual display of the
products with self-selection facility magnetizing customers to choose from a wide assortment
and variety of the products priced with entrancing fables offers.
The emergence of organized retailing has led to competition which has resulted to the
demographics & psychographic changes in the life of urban consumers. The life style and
purchasing power of the middle class & upper class segment have fuelled the growth of
organized retailing to intense competition among the big players.
Adidas Retail is facing big intense competition from organized retail outlets like Reebok,
Nike , Puma, Woodland , and from unorganized retailers like Footwear shops, Garment shops
etc. Competition in retail sector has become extremely keen. Many new players coming in the
retail market has increased the degree of competition by adopting 5 Ps (i.e. place, product,
price, promotion and people) for successful retailing. While some of the exiting retailers
survived, others failed to do so.

Retail Sector and its scope

in India

Retail Sector and its scope in India

Structure of Indian Retail Sector

The retail industry continued in India in the form of Kirana stores till 1980. Soon,
following the modernization of the retail sector in India, many companies started
pouring in the retail industry in India like Bombay Dyeing, Grasim etc. From that
time the retail sector in India can be widely split into the organized and the
unorganized sector.

Organized Retail Sector

After 50 years of unorganized retailing and fragmented Kirana stores, the Indian
retail industry

has finally begun to move towards modernization, Systematization

and consolidation. Today, modernization is the catch phrase and the key to
understanding retail in the next decade.
There has been a boom in retail trade in India owing to a gradual increase in the
disposable incomes of the middle class households, as a result of good performance
of IT, Service and Infrastructure sectors. More and more players are entering the
retail business in India to introduce new formats like malls, supermarkets, discount
stores, department stores and even changing the traditional looks of bookstores,
chemist shops, and furnishing stores.
Organized retail formats prevalent globally

Malls

Supermarkets

Hypermarkets

Discount Stores

Department Stores

Specialty Stores

Internet Retailing

Convenience Stores

MBO

Unorganized Retail Sector

The unorganized retail sector basically includes the local Kirana stores,
hand cart, the vendors on the pavement (sidewalk) etc. This sector constitutes
about 95% of the total retail trade. As 70% of the employment is generated in
Agriculture sector, hence this form of retailing is widely seen in those areas and of
course to some parts of the urban. There is a lot of hue and cry in the sector for
opening of sector for direct investment from the foreign players, but government
cannot neglect the interests of small players. One of main reason of not opening this
sector to FDI is it may shrink the employment in the unorganized sector and expand
that in the organized.

The Evolution of retail in India

Traditional
Formats
Itinerant Salesman

Established
Formats
Kirana shops

Emerging
Formats
Exclusive retail

outlets
Haats

Convenience/Department stores Hypermarket

Melas

PDS

Malls/Multiplexes
Kiosks

Pan/Beedi shops

Specialty Malls

Post Office

Fast food outlets

etc.

India's Largest retail Chains:

1. PDS (Public Distribution System): 463,000
2. Post offices: 160,000
3. KVIC (Khadi & Village industries): 7,000
4. CSD (Canteen Stores Department) Stores:3,400
(Source business world marketing White book 2005)

Current Scenario of Indian Retail

Sector

The Indian retail market, which is the fifth largest retail destination globally, has
been ranked the 2nd most attractive emerging market for investment after Vietnam
in the retail sector by AT Kearneys seventh annual Global Retail Development Index
(GDRI), in 2008. The share of retail trade in the countrys gross domestic product
(GDP) was between 8-10% in 2007. It is currently 12%, and is likely to reach 22% by
2010.
A McKinsey report 'The rise of Indian Consumer Market', estimates that the
Indian consumer market is likely to grow four times by 2025. Commercial real estate
services company, CB Richard Ellis' findings state that India's retail market is
currently valued at US$ 511 billion

Indian retail on the fast-track

The Indian retail market is the fifth-largest retail destination globally. It is

estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by
2010 and further US$ 637 billion by 2015. Indian retail showed a growth

rate of 49.73% with a turnover of US$ 25.44 billion in 2007-08 as against

US$ 16.99 billion in 2006-2007.

Retail contributes to 10 per cent of Indias Gross Domestic Product and

provides employment to 8 per cent of Indias working population.

Higher disposable incomes, easy availability of credit and high exposure to

media and brands has considerably increased the average propensity to
consume over the years.

GRDI
India ranked first for the third consecutive year on the Global Retail Development
Index 2007, conducted by AT Kearney across 30 emerging economies. India is
ranked as the most preferred retail destination for international investors.
GCCI
India ranked first for the fifth time on the Global Consumer Confidence Index
June 2007, conducted by The Nielsen Company. Indians were judged as the
worlds most optimistic consumers, with high financial confidence about their
income for the next 12 months.

The contribution of retail sector to GDP has been manifested below:

Country

Retail Sector's share in GDP (in %)

India

10

USA

20

China

Brazil

The analysts foresee bright future of the retail sector. A huge number of
shopping malls, nearly 100, have come up in the recent past, generating 20mn

sq ft. retail space, extending more space of about 12mn sq ft to it. Nearly 60
malls are on the verge of completion and may be operational by the end of
current financial year. A forecasted number of nearly 200 malls, in a move to
make additional 50mn sq ft of retail space, will be completed within the next
two -years.
India retail industry is expanding itself most aggressively; as a result a great
demand for real estate is being created. Indian retailers preferred means of
expansion is to expand to other regions and to increase the number of their
outlets in a city. It is expected that by 2010, India may have 600 new shopping
centers. In the Indian retailing industry, food is the most dominating sector and is
growing at a rate of 9% annually. The branded food industry is trying to enter the
India retail industry and convert Indian consumers to branded food. Since at
present 60% of the Indian grocery basket consists of non- branded items. The
global retail giants like Wal-Mart, Spar International, Tesco, K-Mart/SEARS,
Carrefour, ZARA, FCUK, Carrefour Group and The Home Depot, NEXT, Mother
Care, lKEA, Trussardi, DKNY and many more have made plans to march in the
Indian market.
Companies like Spencers, Shoppers Stop, Trent, Reliance, Lifestyle, Pantaloons
Tanishq, Crossroads, Vishal and More already have planned to invest over Rs
5,000cr. Trent is on the edge to take both its brands 'Star India Bazaar' and
'Westside' to new cities, meanwhile Shoppers' Stop has recently geared up for
expansion of present ones and to add 11 new stores including two hypermarkets.
Pantaloon has planned to add eight 'Big Bazaar' malls within the next 6 to 8
months and also Spencer has geared up for opening 15 hypermarkets in near
future.

After partition, Reliance Industries Ltd (RIL) is substantially getting ready to enter in
field of retailing. RIL is poised to emerge as the single largest player in this sector. On the
other hand, Toscos, Wal-Marts or Safeway does ultimately enter in the country. So finally,
Shoppers' Stops, Westside, Pantaloons and West sides in coming years have will face stiff
competition.

Major Indian Retailers:-

RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper,

Spencers Super, Daily, Express & Fresh
Pantaloon

Retail-Formats:

Big

Bazaar,

Food

Bazaar,

Pantaloons,

Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction,
Landmark, and Titan Industries with World of Titans showrooms, Tanishq
outlets, Chroma.

K Raheja Corp Group Formats: Shoppers Stop, Crossword, Hyper City,

Inorbit

Lifestyle International- Lifestyle, Home Centre, Max, Fun City and

International Franchise brand stores.

Pyramid Retail-Formats: Pyramid Megastore, True-Mart

Nilgiris-Formats: Nilgiri's supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom

discount chain.

More-Formats: Supermarket chain and hypermarket chain

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

German Metro Cash & Carry:- Wholesale

Shoprite Holdings-Formats: Shoprite Hypermarket

International Retailers:The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti Enterprises
to enter Indian retail market.

Microsoft's first shop-in-shop pilot has been launched with the Tata Group subsidiary
Infiniti Retail's multi-brand consumer durables retail format, Croma.

The Walt Disney Company, consumer product retailing arm of global animation
giant, will soon add 135 new stores to its existing 15 stores.

World's leading coffee chain, Starbucks' enters India through a tie-up with the
country's leading multiplex operator PVR Limited.

Apple Inc has entered into an exclusive marketing and distribution deal with Reliance
Retail through "iStore by Reliance Digital".

Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony,
Sharp, Kodak, Medicine Shoppe among others.

Company Profile

Type

Public (BIT: BEN)

Industry

Fashion

Founded

1965

Headquart
ers

Ponzano Veneto, Italy

Key

Luciano Benetton, Chairman

people

Carlo Benetton, Deputy Chairman

Alessandro Benetton, Executive Deputy Chairman
Franco Furn and Biagio Chiarolanza, delegating
operative management of the company
Giuliana Benetton, Director
Gilberto Benetton, Director

Products

Clothing, Accessories and Footwear

Revenue

2,049 million euro (2009)

Employees 9,511 (2009)

Website

benettongroup.com

Today, the Benetton Group is present in 120 countries around the world.
Its core business is fashion apparel: a group with a strong Italian character
whose style, quality and passion are clearly seen in its brands, the
casualUnited Colors of Benetton, the glamour oriented Sisley, the
leisurewear brand Playlife. The Group produces over 150 million garments
every year. Its network of around 6,000 contemporary stores around the
world, offers high quality customer services and generates a total
turnover of over 2 billion euro.
In 1965, Luciano Benetton, the eldest of four children, was a 30-year-old
salesman in Treviso. He saw a market for colourful clothes, and sold a

younger brother's bicycle in order to buy his first second-hand knitting

machine. His initial small collection of sweaters received a positive
response in local stores in the Veneto region, and soon after he asked his
sister and two younger brothers, Gilberto and Carlo, to join him. In 1965,
the entity known as the "Benetton Group" is formed.
In 1966, the Benettons opened their first store in Belluno and three years
after in Paris, with Luciano as chairman, his brother Gilberto in charge of
administration, their younger brother Carlo running production, and
Giuliana as a chief designer.

VisionTo enhance social and environmental performance in the company and

the supply chain, thereby improving the lives of the people making our
products.

MISSIONTo create the best and most productive workplace in the world by:

Creating a working environment that stimulates team spirit and

passion, engagement and achievement

Instilling a performance culture, based upon strong leadership,

setting the ground for winners

Fostering an understanding of social and environmental

responsibility for the world in which we live; for the rights of all
individuals and for the laws and customs of the countries in which
we operateProviding a secure working environment.

Adidas' Values
The adidas Group strives to be the global leader in the sporting goods
industry with sports brands built on a passion for sports and a sporting
lifestyle.
Adidas is consumer focused and therefore continuously improve the
quality, look, feel and image of their our products and their our
organizational structures to match and exceed consumer expectations
and to provide them with the highest value.

They are innovation and design leaders who seek to help athletes of
all skill levels achieve peak performance with every product they bring to
market.
They are a global organization that is socially and environmentally
responsible, creative and financially rewarding for their employees and
shareholders.
They are committed to continuously strengthening their brands and
products to improve their competitive position.
They are dedicated to consistently delivering outstanding financial
results
.

Adidas position in the marketAccording to independent market research, adidas holds a

market share of 34% and is thus the worlds leading football brand. In
Europe, adidas holds a market share in football of over 38%, in some core
markets such as Germany and the USA the figure is over 50% (sources:
NPD Sports Tracking Europe and SportScan).

Awards and RecognitionWe value feedback from our stakeholders about our programme and, of
course we appreciate positive recognition from international institutions
and rating agencies, non-governmental organisations (NGOs) and socially
responsible investment (SRI) analysts. These organisations evaluate our
work through in-depth analysis of the companys social and environmental
programme, including document review and interviews with employees
and management.
We have won awards and recognition from several organisations:

2010 Industry leader and Supersector leader in the Dow Jones

Sustainability Index
Inclusion in the FTSE4Good Index
Inclusion in the ECPI Ethical Index EMU

 adidas AG has been awarded with the title "Sustainable retail business
2009"
Best rating by European consumer organisations in 2009
Inclusion in the Vigeo Group Indexes
adidas Group among the 100 most sustainable corporations in the
world
Re-accreditation by the Fair Labor Association in 2008
B.A.U.M. Environmental Award 2007
Product rated best for quality and CSR by Stiftung Warentest in 2006
adidas Group among Top Employers of the Year 2006
"komanager of the year 2005
Best Sustainability Reporting for 2002 and 2004

BENETTON GROUP
.

Brands
UCBA global brand, and one of the most well known in the world, United
Colors of Benetton has an international style that combines color, quality
and fashion. Each season the womenswear, menswear, childrenswear
and underwear collections offer a total look for everyday, for work and
for leisure, in the city and outdoors. The Benetton Baby label is a new
product line dedicated to the prenatal and the under-fivesworld.
The brand is present in many other sectors, from the elegant accessories
to the eyewear lines and perfumes, from the home collection to baby
products. The above products are available in selected specialized shops
worldwide.
www.benetton.com

Undercolors of Benetton is an extension of the Benetton brand,

featuring underwear, beachwear and sleepwear collections, as well
as accessories for women, men and children. A wide selection of
recurring basic colors is enriched every season with the latest
trends. Undercolors is available in its own chain of stores which now
has more than 500 locations in thirty countries and in selected
Benetton
Shops.
www.benetton.com/undercolors

Sisley
This is the Group's most fashion forward brand. Sisley presents
elegant and seductive collections, with special attention given to the
choice of design, fabrics and new shapes. Its creative artists and
independent sales teams concentrate their efforts on its image and
on strong-impact advertising campaigns. The brand has created the
very fashionable Sisley Young line for children from 8 to 12 years old.
www.sisley.com

Playlife is more than a fashion brand, its a multi-brand that brings

together
different
life-styles
and
multiple
purchasing
experiences: Playlife, the heritage brand that draws inspiration
from the preppiness of the American campus; Anthology of
cotton, the comfort of cotton jersey in a collection just for
her; Jeans West, the historic brand associated with denim and
everything that looks good with it; Killer Loop, the urban wear rich
in
technical
details.
www.playlife.com

Products
Running
Adidas currently manufactures several running shoes, including the
adiStar Control 5, the adiStar Ride (the replacement for the adiStar
Cushion 6), the Supernova Sequence (the replacement for the Supernova
Control 10), and the Supernova Cushion 7 (which will soon be replaced by
the Supernova Glide), among others. In addition, their performance

apparel is widely used by runners. Adidas also uses kangaroo leather to

make their more expensive shoes.

Association football
One of the main focuses of Adidas is football kit and associated
equipment. Adidas also provides apparel and equipment for all teams in
Major League Soccer. Adidas remain a major company in the supply of
team kits for international football teams. Current examples include
Russia, France, Germany, Greece, Romania, Argentina, Spain, Mexico,
Japan and Nigeria. Adidas also makes referee kits that are used in
international competition and by many countries and leagues in the world.
In the United States, referees wear the Adidas kits in MLS matches even
though the primary referee supplier is Official Sports. The company has
been an innovator in the area of footwear for the sport with notable
examples including development of the Copa Mondial moulded boot used
for matches on firm dry pitches for almost forty years. The studded
equivalent was named World Cup follow in celebration of the 1978
tournament won by Argentina, one of the nations it supplied at the time.
Adidas became renowned for advancing the "Predator" boot design
developed by ex-Liverpool and Australian international player Craig
Johnston. This design featured a ribbed rubber structure for the upper
leather of the shoe, used to accent the movement of the ball when struck;
highly skilled players claimed they were able to curve the flight of the ball
more easily when wearing this new contoured design. The Predator also
features the Craig Johnston invented "Traxion" sole. As the development
and popularity of Football continued Adidas played a leading role in
shaping the style of the play itself. FIFA, the sports governing body,
commissioned specially designed footballs for use in its own World Cup
tournaments to favour more attacking play. 37 38
In 2009, Adidas signed Sachin Tendulkar and started sponsoring his bat. It
created a new bat 'Adidas ST' for him and 'Adidas KP' for Kevin Pietersen,
the same year. Now both of them use their personalized bats in cricket.

Basketball
Adidas has been a longtime basketball shoe manufacturer and is one of
the leading basketball brands in the world. They are most famous for their
iconic Superstar and Pro Model shoes, affectionately known as "shelltoes"
for their stylized hard rubber toe box. These were made very popular in
the 1980s hip hop street-wear scene alongside Adidas' stripe-sided
polyester suits.

Adidas is also the current outfitter of all 30 franchises in the National

Basketball Association (replacing the Reebok brand after the merger) and
sponsors numerous players past and present like Kareem Abdul-Jabbar
and Tracy McGrady, as well as Dwight Howard, Chauncey Billups, Derrick
Rose, Kevin Garnett, Tim Duncan, Candace Parker, and Gilbert Arenas.

Lacrosse
In 2007, Adidas announced the future production of lacrosse equipment,
and will sponsor the Adidas National Lacrosse Classic in July 2008 for the
top 600 high school underclassmen lacrosse players in the United States.

Rugby
Adidas make rugby balls and other rugby gear. They are the current kit
and ball supplier to the New Zealand All Blacks, Irish Munster Rugby, and
the Argentinean Pumas, among others.

Gymnastics
Since 2000, Adidas has provided men's and women's gymnastics wear for
Team USA, through USA Gymnastics. In 2006, Adidas gymnastics leotards
for women and Adidas men's comp shirts, gymnastics pants and
gymnastics shorts have been available in the USA, with seasonal leotards
offered for Spring, Summer, Fall and Holidays. Starting in 2009, Adidas
gymnastics wear has been available worldwide through GK Elite
Sportswear.

Skateboarding
Adidas SB (Skateboarding) are shoes made specifically for skateboarding.
Many of the shoes Adidas previously made were redesigned for
skateboarding.

Accessories
Adidas also designs and makes watches, eyewear, bags, baseball caps,
and socks. As well, Adidas has a branded range of male and female
deodorants, perfumes, aftershave and lotions.

PRODUCT PROFILEApart from delivering a pair of comfortable sports shoes ADIDAS also
provides a number of value-added features with its products. The features

that are a part of every ADIDAS PERFORMANCE SPORTS shoes are as

follows.

High Performance Sports Shoes:

ADIDAS have patented

four basic technologies like as adiprene, adiprene+, torsion, traxion and
have made it into a regular feature in most of its models that reduces the
weight of the shoe and reduces pressure on the heels. Besides the overall
design and compactness of the shoes have made it a favorite of many
professional athlete around the world.

Comfort:

ADIDAS shoes are renowned all over the world for the
comfort they provide. Well padded and cushioned, they provide a
tremendous level of comfort to the wearer and reduce the strain to his
feet while playing.

Lightweight: This attribute is in line with the two described above. A

lightweight shoe provides great mobility and eases the pressure on the
feel of wearer.

Durability:

People purchasing a pair of shoes at such a high price

often feel that they have made an investment. They would obviously want
to
see
their
shoes
last
a
long
time.

Style:

Adidass designs are considered to be the most stylish in the

industry and beat all others as far as looks are concerned. Attractively
packaged, it is a delight to bring a pair home. Add to this the three
strips the most recognizable symbol in sports and you have a product
that would give the user a definite sense of pride.
ADIdas shoes also come with a guarantee card that enables the owner to
return it in case of manufacturing defects. However, owing to the fact that
the company implements strict quality control measures, coming across a
defective pair in a store are a rarity. The most recent additions to their line
are the supernova and F-50, designed for skateboarding. ADIDAS positions
its products in such a way as to try to appeal to a "youthful....materialistic
crowd". It is positionedas a premium performance brand.
ADIDAS SUPERNOVA
ADIDAS F-50

Management Board

Igor Landau (Chairman)

Robin J. Stalker

Erich Stamminger

Objective of the Study

Objectives of the study

To study Hazratganj area demographic wise.

To study and measure satisfaction level of Adidas shoes users.

To suggest alternatives for enhancing customer satisfaction.

To study about customer preferences and frequency of shopping.

To know the target customers of Adidas E.B.O. at Saharaganj.
To understand the customers expectation from retail service provider.

The main objective of the study are

SWOT analysis of the product sold

Research Methodology and

Scope of the Study

Research Methodology
The study is relied on primary as well as secondary data.
The primary data is collected through personal interviews using structured
Questionnaire.
The Secondary is collected from management of the Adidas Retail Ltd, various
books, journals and Internet.
Sampling Methods:
Probability sampling method or simple random sampling
Universe: The research work was accomplished in Saharaganj, Lucknow. So Saharaganj
mall is my Universe.
Sample Size: Sample size was 50.
Research Instrument: For this study, for the collection of various data requirement, structured
questionnaire is used. This questionnaire contains qualitative and quantitative
information of the customers. The questionnaire contains of both open-ended
and close ended questions, which would help to know the situation prevailing in
the market.

Statistical Tools Used

For the purpose of data analysis, Percentage Method is used for calculation and
result was interpreted.
No. of Respondents
Percentage = ---------------------------100
Total Respondents

TYPES OF QUESTION INCLUDED

DICHOTOMOUS QUESTION
Which has only two answer YES or NO ?

MULTIPLE CHOICES QUESTION

Where

respondent is offered more than two choices.

IMPORTANCE SCALE
A scale that rates the importance of some attributes.

RATING SCALE
A scale that rates some attribute from highly satisfied to highly
unsatisfied and very inefficient to Very efficient

SAMPLING UNITWho is to be surveyed? The researcher must define the target population
that
will
be
sampled.
The sample Unit taken by me; General public of different age group,
different gender and different profession.

EXTENT:Where the servey should be carried out?

I have focused entire adidas customer of lucknow city for the servey

TIME-FRAME:When t

he survey should be conduct. I

conducted

my

survey

for

8weeks

from

1ST

Jun

to

12th-July.

SAMPLING FRAME:The source from which sample is drawn.

SAMPLING TECHNIQUEHow should the respondent be chosen?

In the Project sampling is done on basis of Probability sampling. Among

the probability sampling design the sampling design chosen is stratified
random
sampling.
Because in this survey I had stratified the sample in different age group,
different gender and different profession.

SAMPLE SIZEConsumers of shoes, 50 respondent

STEPS FOLLOWED IN COMPLETING THE STUDYI visited marketing, consumer behavior , management books, journals are
consulted.
(ii) Internet sites containing information on ADIDAS shoes & marketing are
browsed.
(iii) Sample survey was conducted.
(iv)Data was thoroughly checked for error.

DATA PROCESSING METHDOLOGYOnce the primary data have been collected, they are (I) Edited
inspected, corrected and
modified.

(ii) Tabulation bring similar data together and totaling them in

meaningful
categories.
Questionnaires are edited both in the field and later in home. Field editing
took place just often the interview. Generally editing is required for open
type of questions. Brief notes or symbols are frequently used during the
interview to initially record the interviewers response since it was not
desirable to interrupt the flow with lengthy note taking. Then immediately
after the interview, brief notes are respondent. The responses are
thoroughly checked in home for incorrect, inconsequential or
contradictions categories are developed only often the replies has been
reviewed. This review provided a feel for the pattern of answers and thus

determine
what
categories
best
represent
the
answers.
The collected data are placed into an order. Percentages of respondents
answered similarly are calculated and placed in a table. Then this is
interpreted. This involved drawing conclusion from the gathered data.
Interpretation changes the new information immerging from the analysis
into information that is pertinent or relevant to the study.

CONCLUSION
SURVEY

WAS

DRAWN

BASED

ON THE
FINDINGS

Finally recommendation was made to improve the sales strategy of

ADIDAS shoes to increase the level customer satisfaction.

SAMPLE DESIGNTHE BASIS OF DESIGN Consumers of ADIDAS shoes are chosen randomly, so that unbiased,
representative sample may be obtained.

Scope of the Study

With the help of primary data given by the respondent during survey and
secondary data, study is done to help the ADIDAS to understand the
market potential at SAHARAGANJ, HAZRATGANJ market, also to understand
the customer Satisfaction and, potential customers and current market
position of Adidas at that mall.

Assumptions of the Study

The assumptions of the study are---Questionnaires which were filled by both husband and wife and other
members of family have been considered by me as filled by male (earner)
only.
Those questionnaires which are more than 80% filled, I have taken them
in to consideration as a full filled questionnaire.
Customers who visit occasionally to Adidas in a month or with 15 days, I
consider that once in a week.

LITERATURE REVIEW
The study of consumer behavior has evolved since the Information
Processing Model (Bettman, 1979) assumed that the individual is logical in
his/her buying process. This model was criticized because it failed to treat
different consumption phenomena motivated by symbolic meanings
(Holbrook and Hirschman, 1982). Individuals are not always looking for
efficiency and economy, but also for distraction, aesthetic, expression,
etc. (Boyd and Levy, 1963). Calling for a broadening of theoretical
frameworks of consumer behavior, many authors pleaded in favor of the
study of all consumption forms (Holbrook, 1986), being inspired by
European semi logy and American semiotic (Levy, 1959, 1963, 1981;
Hirschman, 1980; Kehret-Ward, Johnson and Louie, 1985; Mick, 1986;
Holbrook, 1986; OShaughnessy and Holbrook, 1988; Nth, 1988; Stern,
1988; Grafton-Small and Linstead, 1989). These are the study of signs,
meanings and production of symbols. Fantasy, emotion and pleasant
aspects of consumption were then tackled from an experiential point of
view. The Experiential View is a phenomenological perspective that
perceives consumption as a primary state of consciousness having a
variety of symbolic meanings, responses and hedonist criteria (Holbrook
and Hirschman, 1982; Olshavsky and Granbois, 1979). The basis of the
traditional Information Processing Model is the optimization of the utility of
a product under the basis of a utilitarian evaluation of its tangible
characteristics. Nevertheless, it neglects emotional aspects. On the other

hand, the Experiential View leaves out different factors such as economic
conditions, expectations, some elements of the marketing mix (price,
distribution), perceived risk and conflicts, but mostly the social influence
of the consumers reference groups (Holbrook and Hirschman, 1982;
Business Central Europe, 1994) which is the aim of the Symbolic
Interactionism Perspective. Acquisition, possession and consumption are
activities taking place in a process of impressions creation or identity
management which is, according to Belk (1978), an interactive process
concerning both the image of goods consumed and that of the individuals
consuming them. The Symbolic Interactionism Perspective deals with the
relationship between consumers and the products they consume, and
suggests that a significant proportion of consumption behaviors consist of
social behaviors, and vice versa (Solomon, 1983). This leads us to
consider the importance of socialization processes (family, reference
groups) through which individuals learn the meanings of symbols and
those of consumption. With the aforementioned meanings being
negotiated and built through interactions with others, consumption is not
only an individual activity, but also a social process of goods definition
(Gallant and Kleinman, 1983). Since individuals are often motivated to
acquire products according to what they mean to them and to members of
their social reference groups (Leigh and Gabel, 1992), their behavior is
subject to the pressures of cultural norms and the expectations of
socialization institutions rules such as those coming from family and other
reference groups (Faber, OGuinn and McCarthy, 1987; Engel, Blackwell
and Miniard, 1993). Thus, Symbolic Interactionism Perspective considers
the human spirit as fundamentally social, and dependent on shared
symbols. The symbols being generated at a global level (Geertz, 1973;
Solomon, 1983; McCracken, 1986, 1988; Leigh and Gabel, 1992), the
Symbolic Interactionism Perspective accepts as precept the fact that
society and its culture precede every individual action, and that a cultural
consensus results from interactions, communication, and negotiation
between social actors (Charon, 1989).
The informational value of the country of origin was also found to vary
according to the level of involvement of the consumer in purchasing the
product and the presence of other cues such as brand name, guarantee
and price (Ahmed and dAstous, 1993). In a recently published metaanalysis of country-of-origin effects, Peterson and Jolibert (1995) conclude
that the average effect size is lower (0.19) for purchase intention, higher
(0.30) for quality/reliability perceptions and context dependent. More
specifically, they found that the characteristics of the study (research
design, type of respondents, study cues, sample size, stimulus context
etc.) influence the relative effect of country-of-origin to a lesser degree for

quality/reliability perceptions than for purchase intention. However, the

type of respondents (students, consumers or businesspeople) had no
influence on quality/reliability perceptions.
This is a tall order, one that some companies have been able to fill at least
to some extent. For example, Amazon keeps track of customers
purchases and suggests other books they might like. Dell builds
computers from mass-made parts to customers' specifications. But
Simonson argues some companies can take the concept too far, like the
Custom Foot chain of shoe stores that took detailed measurements and
specifications from each customer to design one-of-a-kind shoes.
Simonson argues that Custom Foot didn't take into account that some
customers were put off by the individualized attention and felt obligated
to buy the shoes because the store went to so much trouble. They often
didn't come back. Indeed, an Internet search produces no Website.
In view of this, the HKTDC conducted a survey study in four major
mainland cities in February 2007. The study was composed of two
interlocking surveys. The first survey (survey on shoppers) successfully
interviewed a total of 1,000 shoppers of leather consumer goods in four
major cities, namely Beijing (BJ), Chengdu (CD), Guangzhou (GZ) and
Shanghai (SH). The second survey (survey on retailers) interviewed
managers/officers-in-charge of major department stores in these four
cities.
The survey study analyses leather consumer goods in terms of consumer
behavior, the competitiveness of Hong Kong brands and the consumer
segments with the greatest biggest spending power. The main survey
findings are as follows:

CONSUMER BEHAVIOURShopping locations, Department stores were the most preferred type of
retailers, followed by outlets in shopping malls and chain stores. Product
variety, guaranteed quality, brand choice, price, services and store
environment were cited as the major reasonsfor visiting a leather
consumer goods store.
SHOPPING TIMEThirty-eight percent of respondents visited leather consumer goods shops
at least once a month.
Shopping during weekends is common. Other popular shopping occasions

include National Day (1st October), sales time (August/February), New

Year's Day (January), 15 August etc.
MARKETING CHANNELPromotional activities in shopping malls and department stores are the
most popular promotional and sales activities, followed by discount/price
reduction, TV commercials, discount coupons, promotional stands,
exhibitions,
buy-one(or
more)
gets-one-free.
PURCHASING POWEROn average adidas customers purchase power are very high.
SELECTION CRITERIAWhen choosing leather consumer goods, product quality stood out as the
principal consideration for respondents, followed by product material,
craftsmanship, style/design, price and brand.
POPULAR BRANDS- Most respondents considered brands important.

SWOT ANALYSIS
Strengths1-Leading player in the sporting goods industry-The company is
amongst the top players in the sporting goods industry due to its strong
brands, market-leading products and commitment to sports for meeting
consumer expectations.
2-Successful new product innovations-

The company has consistently launched new products and this has
enabled it to widen its portfolio and also enhance its competitive position.
Each company brand targets a specific market and new products are
introduced based on their requirements. This has helped the company
achieve a greater degree of success.
3-Geographically-diversified operations

Weaknesses1-Poor margins
2-Low inventory turnover
3-Poor ROA and ROI
4-Underperformance of Reebok

Opportunities1-Sponsorship agreements
2-Adoption of healthier lifestyles
3-Growing global footwear market

Threats1-Rising costs of raw materials

2-Counterfeits
3-Legal Risks

4 Ps
PRODUCTSegmentation:
Targets Men and Women.
Generally of the age between 15 years to 50 years.

 Serving Niche segments for some products.

The consumer is a sportsperson or an athlete & a brand in himself.
Targeting:
Targets the youth who is educated.
The consumer is from Upper Middle Class.
The consumer is working & loves sports.
The consumer is fashionable and stylish.
Positioning:
The Shoes are comfortable as compared to any other in the
segment.
The apparels are stylish & designed to suit the consumer need.
The eye gear and the perfumes are serving the niche segment.
Price

The prices of the products are skimming.

The prices are psychological.
The segment is niche, so the prices are higher.
Some products are having penetration prices.

Promotions

Official Sponsor of the FIFA WORLD CUP 2010.

Brand Ambassador is Mr. Sachin Tendulkar.
Women Brand Ambassador is Ms. Sania Mirza.
ADIDAS LIFESTYLE Promotions are done with GIFT VOUCHER.

Introduction to Market
Potential and Catchment
Analysis

Market Potential
Market Potential:-

Market Potential is the total amount of a product/service that customers will

purchase within a specified period of time at a specific level of industry wide
marketing activity or estimated maximum total sales revenue of all suppliers of a
product in a market during certain period of time.
This is an important aspect of marketing since one has to do market research
related to his industry product which can be business to consumer or business to
business. Market potential is basically carried out to know the strength in the
industry also to allocate the target to the sales force based on optimum market
research which normally includes the customers requirement and their
expansion plans, investment etc. With optimum information a company can
know amount of investment for a product, also for a particular area.

Total Market Demand:The total market demand for a product or service is the total volume that would
be bought by a defined consumer group in a defined geographic area in a
defined time period in a defined marketing environment under a defined level
and mix of industry marketing effort. Total market demand is not a fixed number
but a function of the stated conditions.
Market demand in the specific period

Market potential
Market forecast
Market minimum

Planned expenditure
Industry marketing expenditure

Market demand as a function of Industry marketing expenditures

Fig (1): Market Demand

Figure (1) shows the relationship between total market demand and various
market conditions. In this figure, upper limit of market demand is called Market
Potential.
Companies have developed various practical methods for estimating total
market demand.
A common method to estimate total market demand is as follows:Q=nqp
Where

Q = total market demand

n = number of possible buyers in the market
q = quantity purchased by an average buyer per year
p = price of an avg. unit

Benefits of Market Potential Analysis:

Understand market potential for a single store, network of stores or a new

market.

Deploy resources effectively by ranking markets in priority order.

Forecast total opportunity in terms of number of customers and revenue

potential.

Estimate your market share.

A market potential analysis may include:

A customer profile to understand where to find more like them

Market penetration and market share reports showing performance in

existing markets and expected performance in new markets

Market ranking reports allowing you to prioritize resource deployment into

new markets

A geographic view of market opportunity on detailed maps

Market potential can be expressed as a function of:

The number of customers purchasing

Amount purchased

Frequency of purchase

In other words, market potential = (how many * how much* how often)

Bottom Up or Top Down Market Analysis:

A Bottom Up approach to market sizing starts with a company

customers. How much and often do they buy? What is their profile? How
many potential customers do you have in the market based on your
customer profiles? How can you reach them?

A Top Down approach starts with market and industry data. It takes a
close look at a geographic market area and profiles the consumers and/or
businesses to let you know their propensity to buy your products and
services.

Estimating the market or market potential for a new business or business

expansion is critical in determining the economic feasibility of a venture. But
market potential is very essential for the company and by knowing market
potential a company can make its position in the market by finding how many
players are there in that sector.

CATCHMENT ANALYSIS

Introduction about Hazratganj, LUCKNOW :Hazratganj is developed area of Lucknow and it consists of all class of family. In his area
5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families belong to SEC A,
52% families belong to SEC B and 4% families belong to SEC C. All this result has been
found with the help of Area Mapping technique and catchment analysis, all these data are
approximate. By all these data we can find that this area is having good market opportunities
retail Supermarket.

If a company doesnt know who its shoppers are, how can company give them what
they want? If company doesnt know where they come from, how can company
communicate with them? Finding answers to these questions is vital but catchment
analysis is very helpful in that.

A company or retail store will be able to optimize its activities if and only if company
knows its market in depth. Its market penetration, its success and its potential depend
on geographical factors, hard to grasp, hard to fully understand, but catchment
analysis is very helpful.

In the catchment analysis, first part is the area mapping of that local market and
through that finds the locations of the competitors, customers and traffic between

them. Through that we quantify the sizes and potentials of that local catchment areas
and market of that area as whole.

With the help of catchment analysis, company knows the best location for business,
target and potential customers

Type of catchment area

There are four type of catchment that is following

Unitary Catchment
It is hub of the catchment area around the outlet, from where maximum number of
people comes to the retail stores for shopping.
Secondary Catchment
This area is called secondary catchment area which is around 2 km far away retail
stores from where some people come to the shop for shopping.
Tertiary Catchment
The area from where only some selected or loyal customers come to the retail stores
that is more than 2 km far from outlet.
Outer Catchment
Outer catchment area is totally outer area from where only less no. of
sometimes comes to the outlet,

person

9. Data Analysis and

Interpretation

Data Analysis and Interpretation

Research in retail is very essential, as customer preferences and choices are

dynamic and change frequently, the retail company needs to understand these
before redesigning its processes for enhancing business and many more. Since
customer interaction takes place at the store and near store, there is a big
opportunity to gather first hand information and feedback from customers
through research and survey. Research is carried out at the retail level for
concept testing, business feasibility analysis, identification of the right product
mix, target customer and market potential.

The major objectives of analysis of data are:-

To evaluate and enhance data quality

Describe the study population and its relationship

Examine effects of other relevant factors

Seek further insight into the relationship observed or not observed

Evaluate impact and importance

Target Customers
Out of 50 respondents who answerd the questionnaire, 33.5% people fall in the
age group 18-25 years, 38% people fall in the age group 26-35 years,14% people
fall in the age group 36-45 years, 6.75% people fall in the age group 46-55 years
and 7.75% people fall in the age group 56+ years.
From the above analysis, it is observed that majority of the residents fall in the
age

group

18-25

and

26-35.

Age Group of Respondents

7%

18-25

8%
34%

14%

26-35
36-45
46-55
56+

38%

No. of family members of the RespondentsOut of 50 respondents who answerd the questionnaire, 34.5 people belong to 5
members family, 33.75% people belong to 4 members family, 13.5% people
belong to 6 members family, 10.5% people belong to 3 members family, 5%
people belong to 2 members family, 1% people belong to 8 members family.

family member

18%

29%

1
2
14%

3
4

21%

11%
7%

5
6

Target Customer- Education Wise

Out of 50 respondents who answered the questionnaire, 1.75% people belong to
S.S.C. category education level, 7% people belong to Inter category education
level, 53.75% people to Graduate category education level, 34.5% people belong

to Post Graduate category education level and 3% people belong to others

category education level.

Occupation of Respondents
On this basis of 50 respondents who answered the questionnaire, 43% people
belong to Service category, 21.75% people belong to Business category, 18.25%

belong to Student category, 6.75% people belong to House Wife category and
10.25% people belong to Others category.

Occupation of Respondents

10.25

18.25

Student
House Wife

21.75

6.75

Service
Business
Others

43

Monthly Income of Respondents

Out of 50 respondents who answered the questionnaire, 17% people belong less
than 5000 monthly income category, 19.5% people belong to 5000-10,000
monthly income category, 37.25% people belong 10,000-20,000 monthly income
category and 26% people belong to more than 20,000 monthly income category.

Out of 50 respondents who answered the questionnaire, 71% people go to

Supermarkets for shopping, 16.50% people shop from malls, 11.25%
people shop at local retailers and 1.25% people shop at others.

Regular shopping place of Respondents

1%

16%

Super market
Malls

17%

other
66%

local retailer

For Better Price

Out of 50 respondents who answered the questionnaire, 44.75% said very

high about pricing of products, 28.5% said average, 12% said low and
none said very low regarding Better Price in reasons for visiting a Adidas
E.B.O.

PRICE RANGE
very low

low

average

high very high

14%
52%

33%

Out of 50 respondents who answered the questionnaire, 57% said

good about products knowledge of employee, 22.5% said average,
7.25% said very good and 1% said very poor regarding
Convenience/Opening Hours in reasons for visiting a Adidas store.

Most of the customers do not buy during promotions. Generally, the

respondents who buy occasionally or twice a year do not buy during
promotions but go for seasonal offers (34%). Moreover, when they
buy is not fixed (23%).

9
8
7
6
Every 3 months

Occasionally

Every 6 months

Once a year

2
1
0
During Promotions

Seasonal Offer

Not Fixed

Ranking different brands of jeans revealed the respondents followed

by ADIDAS (45) gave that REEBOK (30) the highest rank. NIKE, the
brand in question was ranked third (20).

50
45
40
35
30
25
20
15
10
5
0
ADIDAS

REEBOK

NIKE

PUMA

NEW BALANCE

BRANDS

The highest ranked attribute was given to durability of mess and

leather followed by durability of attachment and range of fitting
styles.
25

20

15

10

Majority of them said that they couldnt say whether advertising and
sales promotions affected their post purchase satisfaction(41%),
followed closely by those to whom advertising and promotions
affected(39%).

Findings of the Study

Findings of the Study

After completing the survey and analyzing the responses of the persons
contacted. I came across the following facts

Consumer life style and spending pattern are changing, more and
more customers are visiting EBO.
Demographics of HAZRATGANJ are very nice for retail business. In
this area 38% people belong 26-35 age group category, 33.5%
people belong to 18-25 age group category, and 14% people belong
to 36-45 age group category and rest other age group.
HAZRATGANJ is mixture of Joint family and Nuclear family because
34.5% family are having only 5 family members, 30.75% family are
having only 4family members, 13.5% family are having 6 family
members and 10.5% family are having 3 family members.
Residents of HAZRATGANJ are well qualified. 53.75% people are
Graduate, 34.5% people are Post Graduate and 7% people have
studied Intermediate/ S.S.C.
In HAZRATGANJ area most of the people are service man. 43%
people are job holders, 21.75% people are business man, 18.25%
people are students and 6.45% women are house wives, 10.25%
people do other works. Among the women respondent most of them
are job holders or business women. This finding indicates that
earning person is the decision maker for a family even for shopping
or any other work.
Most of the customers complained--In Adidas, several variety of product is not available, stock of 1
variety of brand is not sufficient; company should keep more
variety of product.
Adidas use skimming pricing strategy in own product that why
product are very costly .

Product assortment is not good.

Arrangement of products is not systematic, we face problem many
times for selection of products.
Football Jersys are not available in the time of FIFA world cup.
Accessories are available at few quantity.
For Shoes and hand bags, carry bag is small.
Store opening time should be decreased.
Most of the customers were not too happy with level of service.
Maximum time Light doesnt work properly.
Products are not updated; new launched products are not available.
VM is very poor and floor is very small.
Back storage area is very small according to merchandise
availability.

Suggestions and
Recommendations

Suggestions and Recommendations

Most of the customers believe that stock is not updated and no offer
schemes are provided by Adidas on the old stock. Same price is
charged for both the fresh stock and old stock. Respondents feel
offers should be provided on the old in other retail stores.
Adidas should employ experienced sales staff so that they can
better explain the quality and features of the products.
Some of the people find in-store environment of Adidas Store very
dull, so try to maintain nice store image which attracts the
customers and it works in word of mouth marketing for attracting
more customers.
Variety of products should be increased for better selection by the
customers so that customers can choose from a huge lot of items of
different companies having different features as the customers of
Hazratganj complained more regarding variety of products.
Company should try to include kids apparels segment in the Adidas
performance for attracting the customers.
To improve Product visualization the Company should do visual
merchandising in better way.
Adidas should do intensive advertisement through pamphlets, local
newspaper, banners, FM Radio, Kiosks for creating more awareness.
Variety of products should be increased with deep assortment for
better selection by the customers so that customers can choose
from huge lot of items of same company.

Customers are very eager to know about offers, discount schemes

provided by Adidas then Adidas should do better marketing for
creating awareness about offers and discount schemes.
Complained and feedback should be taken care in well manner to
create the loyalty and goodwill.
Merchandise should be arranged properly.
Company should offer competitive price with good quality of
products because most of the customers visit to Supermarket for
better price and quality of products.
Company should give information to the customers through the
marketing gimmick (sms) using database of customers.
Billing should be fast because customers dont want to stay in the
store after purchasing the products at the time of sale.

Limitations of the Study

Limitations of the Study

Following are the few limitation of the particulars research study.

The sample size chosen is limited to 50 only because of time and financial
constraint.

This study was based purely in Hazratganj, Lucknow.

Data collected may not be a representation of the entire population.

The time duration for this project was only for a period of 45 days.

I also took the view of respondents who dont shop from Adidas.

This study was limited to the capabilities and willingness of the

respondents in appropriately answering the questions and information
given by respondents may be correct and may not be correct.

Conclusion

Conclusion

The products of the company are good in quality but the style should be
improved in order to cater all the segments of the market that are already

being occupied by the competitors.

In the organized retail market of Lucknow, Adidas has come up with E.B.O
in the city in 2001, giving good competition to its competitors like Nike,
Reebok and other retail outlets. In the near future, it plans to open many
stores in other malls in Lucknow and other cities and some stores in other
parts of U.P Many more competitors has entered the market and many are
about to enter the market, making Adidas journey even tougher. Hence,
Adidas has to take some important steps to overcome its problem areas
and implement the suggestions before the existing and new retailers grab

the opportunity Making Adidas existence even more challenging.

To sum up Adidas is facing tough competition from its competitors Reebok,
Nike etc, who have grabbed half of the market by establishing its stores in
prime area of the city. Adidas has to do intensive media advertisements by
roping in celebrities as brand ambassadors to create awareness of its
existence, since most of the customers came to know only through friends
and family.

Adidas Performance has good brand awareness but still Spencers lacks in terms of
availability of products, range of items, high pricing and offers and discounts which
can mesmerize the customers to walk in to Adidas as compared to its competitors

Reebok, More, NIKE etc.

Company can enhance its business or increase its sales by providing better customer
service than its competitors, increase the variety of merchandise with deep assortment
and intensive promotion with the help of pamphlets, kiosks, radio about various
offers.

Annexure

FEEDBACK FORM

Name:-

Address:-

Contact No:-

1. What is your age group?

i) 18-25

ii) 26-35 iii) 36-45

iv) 46-55

v) 56+

2. How many Members do have in your family including with you

3. Your Education Level

1. S.S.C 2. Inter 3. Graduate 4. Post Graduate 5. Others

4. Your Occupation
1. Student 2.House Wife 3. Service
5. What is your monthly income?

4.Business 5. Others

1. < 5000

2. 5000-10,000

3. 10,000 - 20,000 4. >20,000

6. Where do you shop regularly?

1. Supermarkets 2. Local market

3. Others

7) How satisfied are you on the following parameters of Levis jeans?

Neither Satisfied
nor Dissatisfied
Extremely Dissatisfied
Somewhat Dissatisfied
Somewhat Extremely
Satisfied

Durability of mess

Price vis--vis quality

Range of colours

Range of fitting styles

Range of sizes

Durability of stitching
with upper

Washing convenience

Range of shades

After sales service

Satisfied

Rate the following attributes on a scale of 1-9 in affecting your

decision making process: (9 being the most important and 1 being least)

Attributes
a

Durability of cloth

Durability of stitching

Trendy clothes

Range of fitting styles

Range of sizes

Range of shades

After sales service

Advertising

Promotion

Rate

If, any other please specify

SUGGESTIONS

THANK YOU

Bibliography

Bibliography

Books:

Marketing Management (13th Edition) -

Principles of Marketing (11th Edition)

By Philip Kotler, Keller,

By Philip Kotler and Gary

Armstrong

Research Methodology

Retailing

Reference:www.google.com
www.adidasgroup.com
www.indiaretailing.com
www.retailindustry.com
www.adidasperformanceretail.com
www.ibef.org
www.thebrandreporter.com
www.shoefashion.com

--

C.R. Kothari
-

A.J. Lamba