Professional Documents
Culture Documents
brother Rudolf Dassler who later formed rival shoe company PUMA AG.
parallel stripes of the same color, and the same motif is incorporated
Bata. adidas later re-entered India for the second time in 1996 through
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The company launches every six months between 600 and 800 new
products in India are sold through 140 own outlets (excluding multi-
brand outlets).
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||| Industry Scenario |||
(as of 2003-04)
after a gap of four years and brand shops were filled with a fresh and
percent growth.
Pre-1997, adidas had tied up with Bata and Woodland and first began
started retailing other brands like Reebok, Nike and Lee Cooper.
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As of 2005-06, the current premium sports goods market in India was
Category.
The main multinational players in this industry are Nike, Puma, Fila,
adidas & Reebok. Indian players include Action Shoes Ltd., Liberty
This report will mainly consider Nike & Rbk (Reebok) as competitors for
adidas.
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||| Consumers |||
cheapest range of shoes it had ever sold. The new line took into
sports enthusiast. We have also noted the need for constant change—
products.
has also been impacted to a large extent by the mall mania and the
target the 15-35 age group, both males and females, with a monthly
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The consumer is typically an image-conscious sports fan, but not
necessarily a sportsman.
strategy of reaching out to the young working class on the one hand
(in and around NCR) and also by assessing the student strata who are
pursuing their post-graduation (IMT, DSE, FMS etc). This would leave us
Status so far:
Respondents: 118
11)
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showed that comfort, weight and styling of the shoe were important
elements of the shoe. This initially seems to indicate that the Indian
at the results shows a different picture. The survey also showed that
62.93% budgeted less than Rs. 2000 for their sports shoes. This shows
that while Price is almost never the most important factor for most
and Nike (third), but when asked which brand they would like to own,
Nike topped list, followed by adidas and Reebok. This shows that
than its rivals, but Nike still has the highest brand equity and perceived
value.
The survey also revealed that customers felt that Sales Staff Service
was the most important part of the buying experience. With 51.46%, it
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||| Environmental Analysis |||
The World Cup's global TV and Web audience was bigger than the
Adidas was an official sponsor and paid for the rights to shut Nike out
sharp spike in sales, both of the football (Teamgeist) and footwear &
jerseys.
Globally, by end-June 2006, adidas had already sold $1.5 billion worth
of football products this year owing to the then ongoing World Cup.
billion euros in 2007 before rising again in 2008, when the football
million replica jerseys in the wake of the football event, including 1.5
At the previous World Cup in 2002, the company sold 1.5 million
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It has also sold more than 15 million of its "Teamgeist" World Cup
match balls, compared with 6.0 million of the replica ball for the 2002
tournament.
Adidas estimated its global share of the soccer footwear market rose
quarter.
partnership to be the global sponsor for Euro 2008, which will take
with the UEFA Champions League to become the official ball supplier
until 2009.
BPO Boom
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As we shall explain later, the Call Centre Crowd is characterised by
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||| Retail |||
the retailers to decide which products they will stock in their shops,
how and when they will put them on display and when they will be put
up for sale. Thus, retail outlets of the same brand might well have
that Reebok does not allow retailers to hire their own sales staff
without company approval. All sales staff must pass the company’s
test before getting the job. The same does not apply to adidas though.
Retailers for this company are allowed to hire salespersons they feel
their higher sales, and will be a source of sales growth in the future.
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The décor and ambience of the stores is under the control of the
posters within the store, the type of music, etc. generally conforms to
company policy.
Nike
as many of the world's top football clubs and national teams, including
have seen that although its brand image is good, its sales are not. Nike
Nike certainly does not target them. They use their higher perceived
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Reebok
We gathered from the retailers that in India, adidas and Reebok are
still very much in competition with each other. Both are trying to get to
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||| Segmentation |||
These segments are age groups 1-15 years, 15-35 years and above 35
years.
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||| Targeting & Positioning |||
the age group of 15-35 years. Very few footwear products are aimed at
per month don’t buy a new pair as often as higher income brackets.
A crucial segment adidas has identified is the Call Centre Crowd. This
are not yet independents. This means that their entire income is
consumers.
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Under psychographic segementation, adidas targets…
• Image Drivers: The wealthy few who set the trends in their social
circle. This is the segment responsible for the selling out of the
categories.
and runners. Shoes are designed specifically for sports like cricket,
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adidas rightly sees themselves as the world leaders in football shoes.
This is the only sport market in which they lead Nike. The brand has
been synonymous with football ever since Adi Dassler invented the
for the sports enthusiast. For example, there is a shoe that is designed
like an F1 driver’s shoe. The heel is molded to fit into the floorboard of
an F1 car and the sole is made of Goodyear rubber – the same rubber
that F1 tyres are made of! Despite the effort put into design and
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||| Recommendations |||
After analysing the data, we find that although adidas has a greater
market share than its arch-rival Nike, it still lags behind in brand
image. To tackle this problem, we will now show you what very few
divisions.
Divisional Strategy
The divisional strategy has been developed to provide three distinct consumer
segments with product and marketing concepts that fulfill their unique needs and
desires. The three divisions are:
adidas can claim the prime position in the elite SEC, capturing share of
both mind and heart if they introduce adidas Originals (also known as
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Heritage) and adidas Style. These are extremely up-market products:
i.e. “success, goal-oriented people who focus on career and family and
After acquiring a stagnating Reebok for 3.8 billion pounds, adidas must
prove the deal was more than a market share grab and integrate the
that the female market is not catered to properly but still has great
potential for growth, we think that Reebok should be used to tackle the
image. This image does not conflict with any of adidas’ target markets
adidas could benefit from taking a leaf out of Reebok’s retail book.
Reebok does not allow retailers to hire sales staff. All sales staff have
employees that are equipped with the right knowledge and attitude
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towards service that is required to succeed in the Indian market. We
Consumer Survey
Age
19-21 53 (44.92%)
22-24 54 (45.76%)
25-27 8 (6.78%)
>27 3 (2.54%)
Gender
Male 89 (75.42%)
Female 29 (24.58%)
Do you own a pair of sport shoes?
Yes 111 (94.07%)
No 7 (5.93%)
If yes which Brand/s? (you can chose more than one)
Nike 39 (22.94%)
Adidas 43 (25.29%)
Reebok 48 (28.24%)
Puma 4 (2.35%)
Power 13 (7.65%)
Other 23 (13.53%)
For how many years do you use a pair of sport shoes?
1-2 73 (61.86%)
2-3 23 (19.49%)
3-4 7 (5.93%)
4-5 3 (2.54%)
>5 12 (10.17%)
What is the highest price range that you are willing to keep as a budget when
buying sport shoes?
500-999 30 (25.42%)
1000-1499 23 (19.49%)
1500-1999 21 (17.80%)
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2000-2499 15 (12.71%)
2500-2999 9 (7.63%)
3000-3999 9 (7.63%)
>4000 11 (9.32%)
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Which is the most important factor to you while purchasing sneakers/sport
shoes?
Price 4 (3.39%)
Durability 16 (13.56%)
Comfort 58 (49.15%)
Looks and styling 30 (25.42%)
Brand image 6 (5.08%)
Other 4 (3.39%)
What elements of the shoe are important to you? (you can mark more than one)
Sole 45 (12.82%)
Inside cushioning 59 (16.81%)
Weight of the shoe 71 (20.23%)
Laces 7 (1.99%)
Material 48 (13.68%)
Styling 65 (18.52%)
Color 53 (15.10%)
Other 3 (0.85%)
Which brands advertisements do you like the most?
Adidas 44 (37.29%)
Nike 43 (36.44%)
Reebok 27 (22.88%)
Other 4 (3.39%)
Which brand of shoes would you like to own?
Adidas 40 (33.90%)
Nike 45 (38.14%)
Reebok 25 (21.19%)
Others 8 (6.78%)
Which aspect of buying experience do you consider most important?
Shop Design 14 (13.33%)
Service 53 (50.48%)
Ambience 14 (13.33%)
Shop Location 19 (18.10%)
Others 5 (4.76%)
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