ADIDAS

Marketing Strategy
Submitted to:
Deepti Srivastava
Submitted By:
Vijayta Yadav Satyendra Yadav Tinku Yadav Himanshu Kanaujia Abhinav Anurag Rahul
INTRODUCTION
Adidas was created by Adolf Dassler who took his nickname, Adi, and combined it
with the first syllable of his last name to create the Adidas brand. Adidas firs
t started using athletes to promote their line of products. In the 1936 Olympic
Games, Jessie Owens sponsored Adidas by wearing Adidas shoes for his races. A lo
t of star athletes were sponsored and today star soccer players such as Kaka, Zi
nedine Zidane, David Beckham are sponsored by Adidas.
At the end of the 1970s Adidas dominated the world market in sportswear. But in
1978, a small Oregon company named Nike founded in 1972 offered more distinctive
colors and styles while also patenting the technical innovations underneath and
inside them. As a result Adidas was overtaken by Nike in the 1980s, with large
financial misfortunes. They were able to come back in the market by creating the
credo that “Teens will usually shun whatever their parents wear” and their parents
wore Nike. In 1997 Adidas sales had climbed over 50% from the previous year, jum
ping back as the driving force in the sportswear market.
ADIDAS IN INDIA
1989 - entered India, license agreement with Bata

1996 - joint venture with Magnum International Trading Co. Ltd.

1998 - Sachin Tendulkar is Brand Ambassador for India

1999 - introduced the cheapest range of shoes they had ever sold

2001 - first televised advertisement for India: Paes & Sachin

2004 - Advantage adidas campaign kicks in. 30% growth milestone

2005 - Andreas Gellner is new MD, India

CUSTOMER SURVEY ANALYSIS
We have conducted the survey of adidas customers to analyze the willingness of t
he customers in India. So according to our survey we have drafted a graph.

There are various prices on the x-axis and on y-axis we have the percentage popu
lation. Percentage of customer who are willing to pay the prices according to th
eir affordability. As it is clear from the graph when we asked to customer if we
are providing you the pair of adidas shoes at just ` 1000-1499 price. We have o
nly 7% people who are ready to buy the shoes at these prices. Most of them are p
utting question on the quality of the product so inspite of buying adidas at thi
s price they are ready to pay these to some cheaper product of matching quality.
Hence we have the less percentage. Then we increased our price to `1500-1999, a
nd then we have 25% of the population. Most of them are ready to buy at these pr
ices just coz they believe that adidas may not compromise with the quality. And
these prices they can afford. After increasing the amount to` 2000-2499 the perc
entage of population who are willing to pay the price are maximum ie, 31%. They
are willing to pay for that and compromise with the prices factor. Increasing pr
ice more to `2500-2999 some of them choose for different brand of some high qual
ity, as if they can pay `2999 so they also go for other options. Increasing more
to `3000-3499 the percentage again decreasing i.e., 8%. the interest of percent
age decreasing as for most of them it is not an affordable prices. Now as we ask
ed at `4000+ the percentage of population increases these population basically h
igh class customers. Most of them are willingly to
pay prices with durability and comfort.
SWOT ANALYSIS OF ADIDAS
Strengths
Took advantage of the trend in mobile media advertising early, before many competi
tors. The Respect M.E. ad campaign reached out to America's youth. Ahead of the curv
e on innovative advertising, due to limited budget. Partnership with MTV further e
nhanced its image of cool. Attained consumer confidence and comfortability with th
e adidas logo on their cell phones. The adidas arcade-style soccer game applet cre
ates a complete brand experience for users. Breaking into the large, urban basketb
all market (U.S.)
Weaknesses
Consumers on average receive no more than 8 minutes of adidas advertising per year
through all forms of broadcast media. Many of its ad campaigns in Europe focused
on older consumers, and not the key 12-24 demographic. Rigid pricing structure. Many
adidas shoes are low quality and over-priced. Limited product line. A line of shoes
targeted towards athletes (many adidas are) should not be so heavy.
Opportunities
Video games can provide a brand experience specifically aimed at the 12-24 year ol
d demographic. Digital media offers richer, more personal, transactional experienc
es than television or print. Advertising through mobile media can be delivered dir
ectly to a targeted audience. While having the portability of print, mobile media
devices are more timesensitive, providing continuous on-time delivery content. 3G-
equipped cell phones allow users to browse the web, watch movie clips and sporti
ng events, download music and play games; this opens new doors for adidas. Lag in
technology adoption in the U.S. cell phone market enables adidas to test new pro
ducts in Europe before launching them in the U.S.. Target the achievers psychograp
hic. Trends in North America tend to have enormous impact on consumer preferences
around the world
Threats
Consumers may be annoyed by advertisements intruding into their personal lives (mo
bile media). Pop-up blockers and digital video recorders provide customers with wa
ys to avoid unwarranted messages. Scarcity of time available to directly address c
onsumers. The dot-com-induced stock market decline of 2000 lost the confidence of
many would-be advocates of digital media. Hard to measure the effectiveness of mob
ile marketing in a rapidly changing technological environment. Advertising must be
tailored to regional tastes in different countries. Out of adidas, Reebok, and Ni
ke, adidas is the least preferred brand among consumers. Failure to expand in Nort
h America could hamper adidas prospects in Asia and threaten its leadership in E
urope, where Nike is growing.
MARKETING MIX
Marketers use the tools to meet the needs of the target customers these tools ar
e called marketing mix. These are 4p’s of marketing: product, price, place and pro
motion. Collectively they are called marketing mix. In the context of 4p’s product
is to meet the needs of consumers in terms of services and goods. Place, promot
ion, accessibility are the other factors which gives importance there should be
a good place for stocks which will be easier to the consumer to get through it.
Promotion of product also plays and important role in the marketing. Promotion o
f the product increases the interest of customer and also creates a value and tr
ust towards it. It also gives the importance and relevance of the products. Prom
otion can also be through the communication. Price also matters it should be in
accordance with your target customers. Also in such a manner that it will give m
ore revenues in short run. Each mix has its own importance, remember if your mar
keting mix doesn’t meet the needs of the customers then you will never meet your o
bjectives. For example if you have improve your product, then the cost in the pr
oduction must increases as a result it increases the cost of the product. There
must be a good communication to tell the customers that you have improved the qu
ality for them to make more desirable and stable thus increases the price.
PRODUCT The product is the physical product or service offered to the consumer.
In the case of physical products, it also refers to any services or conveniences
that are part of the
PRICE
PLACE Promotion decisions are those related to communicating and selling to pote
ntial consumers. Since these costs can be large in proportion to the product pri
ce, a break-even analysis should be performed when making promotion decisions. I
t is useful to know the value of a customer in order to determine whether additi
onal customers are worth the cost of acquiring them. Promotion decisions involve
advertising, public relations, media types, etc.
PROMOTION Place (or placement) decisions are those associated with channels of d
istribution that serve as the means for getting the product to the target custom
ers. The distribution system performs transactional, logistical, and facilitatin
g functions. Distribution decisions include market coverage, channel member sele
ction, logistics and services.
Pricing decisions should take into account profit margins and the probable prici
ng response of Competitors. Pricing includes not only the list price, but also d
iscounts, financing, and other offering. Product decisions options such as inclu
de leasing. aspects such as function, appearance, packaging, service, warranty,
etc.
levels
PRODUCT
we know that marketing is the fundamental to provide the actual benefit to the c
ustomers. Marketing is not only to provide the product but it is to the change o
r to communicate to the customers and convince about it. Adidas as a product peo
ple need comfort, durability and style.
FEATURED Chelsea FC
Brotherhood

SPORTS Basketball Golf Football Running Training Tennis Women outdoor

MORE

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adidas by Stella McCartney

F50i
PRICING
is the only mix which generates the revenues to the company. so the company shou
ld follow the strategy of price making by considering various factors:
BRAND VALUE – the price should be decided in such a manner so that it matches
with pshycology of the customers. If you made a higher price than it will decrea
se the demand for the product and hence fewer buyers. Fewer buyers ultimately le
sser will be the sales and hence profit. The price should not be too low because
If the price is too low than then it will decrease the value of the product for
the customers. They might be question on the quality of the product.

SUITABLE FOR THE TARGET CUSTOMERS - As higher as well as the lower price will af
fect the value hence the price should be right. It should be matched with custom
ers which you are targeting. If you are targeting to high class then your price
should be high and if you are targeting the middle as well as the lower class th
en the price should be matched accordingly.
GENERATING THE REVENUES QUICKLY – pice also affect the revenues and the profits of
the company. If we talking in terms of profit maximization then marginal revenu
e should be equal to marginal cost, MR = MC
Also the difference between the total revenue and the total cost should be maxim
um, π = TR – TC.
- com etition T he com any should aware about the com etetors, what the similar
roduct com any offering rices to customers.
PLACE-DISTRIBUTION
A crucial decision in any marketing mix is to correctly identify the distributio
n channels. The question “how to reach the customer" must always be in your mind.
The lace is where you can ex ect to find your customer and consequently, where
the sale is realized. Knowing this lace, you have to look for a distribution ch
annel in order to reach your customer.
Distribution areas:
Locations Logistics Channels channel motivation market coverage service levels
bile technology usage Instead of " lace" it would be better to use the word "dis
tribution" but the MBA lingo uses " lace" to memorize the 4 Ps of the marketing
mix!
The distribution strategies a lied by ADIDAS:
1. CONCENTRATING RESOURCES ON MOST PROFITABLE CUSTOMER SEGMENTS. Concentrating on
distribution channels reaching most rofitable segments. Offering total customer s
ervice at higher rice. 2. EXPLORING AND EXPANDING NEW GEOGRAPHICAL MARKETS. Natio
nal market ex ansion. Regional market ex ansion. Ex ort market ex ansion.
PROMOTION
Promotion includes all of the tools available to the marketer for 'marketing com
munication'. Promotion uses methods of communication with two objectives: (1) In
forming the existing and otential consumers about a roduct. (2) To ersuade co
nsumers to buy the roduct.
TOOLS OF PROMOTION
Advertising Public relations Messages Direct marketing Sales Media Budget
The romotion strategies a lied by ADIDAS:
REDUCING NUMBER OF LOST CUSTOMERS. Im roving communication with resent customers. Pr
motion aiming at existing customers. Understand reasons for losing customers. ATTRAC
TING OTHER MARKET SEGMENTS. Seeking other distribution channels. Advertising in othe
r media.
CONCLUSION
Adidas have used the theoretical systems to create their brand building rograms
. Adidas launched sub brand of the equi ment roduct line for the elite of s ort
s men. Adidas
continues to rove itself as a brand built to last through a game lan of reinve
ntion. And it is constantly im roving the sales and the brand image. Marketing m
ix lays an im ortant role in increasing the sales and making a brand name in th
e market. The right roduct on a correct rice at a right lace and with ro er
and constant romotion lays a vital role in marketing. Adidas used the tool of
Marketing mix rightly to enhance the image and to conquer the market.