Case Study On

MNC : Prof . Manoj Das

ITM, Kharghar, Navi Mumbai ,
Batch : XIII
 Group No. 7
Team Members

1. Kishore Gulhane (KH08JUNMBA074)

2. Tarun Tiwari (KH08JUNMBA107)
3. Tushar Patil (KH08JUNMBA066)
4. Shravan Bhumkar (KH08JUNMBA100)
5. Gaurav Patel (KH08JUNMBA065)
 History of adidas

2008 : Acquisition of Ashworth

2006 : Acquisition of Reebok
2005 : Divestiture of Salomon Business International Ltd
Units to Armer Sports Corp.
2001 : Herbert Heiner as a new
1997 : Acquisition of Salomon CEO of adidas
AG
1993 : Robert Louis Deryfus as
new CEO of adidas AG
1987 : Death of Horst Dassler
1972 : Nike shoes appeared in
1970s : adidas dominated in the US Olympic games
Athletic footwear industry
1949 : Formal registration of
1920 : Adolf Dassler started to adidas AG
produce sports shoe
 Adidas Facts
President & CEO Erich Stamminger

Description At adidas, our organization is matched to the needs of sport-

oriented consumers. Our two-divisional set-up of Sport
Performance and Sport Style helps us to develop and market
innovative products, to best meet the needs of today’s
consumers.
Within Sport Performance, clear focus lies on Running,
Football, Basketball and other global performance categories.
Sport Style, comprised of the previous Sport Heritage and
Sport Style divisions, is specifically targeting the lifestyle
consumer.

Financials Adidas 2008

Net sales: $10 billion
Employees 23,202 at year end 2008
Own retail 792 Concept Stores (Sport Performance, Originals Stores)
381 Factory Outlets
 Product Segment

Original
Original Life Style(Y3)

Men Men Men

Footwear (146) Footwear (52) Footwear (24)
Clothing (282) Clothing (81) Clothing (- -)
Accessories ( 49) Accessories (16) Accessories (- -)
Women Women Women
Footwear (71) Footwear (47) Footwear (12)
Clothing (193) Clothing (49) Clothing (- -)
Accessories ( 64) Accessories (08) Accessories (- -)
Number indicates product available in market in particular segment
 Case Study Issues

 Changing ownership gradually eroded the company’s

fortunes.
 Lack of global advertisement campaign
 Less market share in U.S
 Importance of new ad claiming Adidas’s Heritage
 Creating 3 new divisions based on products
 Identifying market for new technology based footwear
Adidas-1
 SWOT Analysis Continue…

STRENGTH WEAKNESS
 World Wide presence in 200  Limited exposure to U.S market
countries  Limited budget allocation to
 Long List of Product Line advertisement
− Football  Few influential athletes in Brand
− Running Ambassador portfolio
− Basketball etc.  Poor Ad agency
 Focus on performance development  Poor customer service
and Technology development
 Sponsorship to various sports and
events like Olympics, Streetball,
Soccer, Tennis, etc.
 Brand reputation in achieving sports
performance products
 Largest market share in Europe
 SWOT Analysis
OPPORTUNITIES
 Has a great opportunity to expand
international market
− Retail outlet
− E-commerce
 Positive and increasing market trends
can increase through the effective
advertising (For Technology driven
products)
 Increase endorsement programs
 Tie up with local market player to
boost the sale-volume
THREATS
 Adidas larger competitor Nike has a
grater market share and having a big
budget in marketing activity
 The newly born several brands like
New Balance, Reebok, CAT, GAP
has increase their advertising budget
in recent years.
 Amount of competitors increasing day
by day
 Global Economic crisis
 Comparative Analysis
Brand Equity Endorsement focus strategy, advertising,The platforms, the endorsement
Model sponsorship programs focusing on majorfocus strategy, creating a dominant
global events, sports associations, andmedia presence, development of
teams, and sub-brands. Flagship stores, NikeTown and
sub branding.

Brand Adidas focuses on sponsorship of teams andNike has their focus on individuals
Awareness events e.g. national teams and big sportlike M. Jordan and Tiger Woods
events like the Olympic Games and different
World Championship events.

TV and Media ads with personalities likeBillboards and Murals on building

Mohammad Ali & Emil Zatopekwith messages featuring Nike
communicating adidas heritage of innovation,sponsored athletes and not
technology products.
“We know then- we know now”
Sports events like streetball challenge inEstb. flag ship stores and Nike
Europe. town shops nationally and abroad.

Brand Trendy, modern and cool Sports, attitude and life style
association
Adidas
Nike
 Discussion Continue…

 Ads proclaiming Adidas heritage will be effective in building

brand in United states ?
Yes
 It shows brand’s deep historical reservoir of greatness,
inspiration and achievement and rekindle the indominatable
spirit of a brand that earned its special place in the world.
 It reflects itself as the true, legitimate global sports brand.
 It creates the attitude of winning in every athletes at every
level.
 Even if one isn’t a sport fanatic the quality of adidas shoes are
already passable for market. Company not only offer shoes but
lifestyle.
 It shows depth and breadth of the brand history.
 Discussion Continue…

 Asses the new “Impossible is nothing” advertising tagline. Do you

think this phrase will became part of popular culture the way Nike’s
“JUST DO IT” tagline has ?
Yes
 It creates the attitude that drives all athletes to overcome barriers
and surpass limits.
 The true athlete is not discouraged by the impossible, but is drawn
to it as a challenge, as a dare.
 The “impossible” theme tied in with historic adidas moments
involving Muhammad Ali, Jesse Owens and Nadia Comaneci, each
of whom managed to do the impossible.
 It echoed some of adidas’s own breakthrough accomplishments as
a pioneer in athletic equipment.
 Discussion Continue…

 It also resonated with the hungry spirit of every athlete, poor

amateur; every kid on a skateboard trying a move that had
never been done.
 It challenges everyone to dream about what they would like to
achieve and to believe that their dreams can be realized.
 --------------------------------
 YES, It can be integrated with popular culture like Nike’s “Just
do it” because big success stories with personalities like Emil
Zatopek, Mohammad Ali trying to spread that “There is nothing
between you and success, so exceed your own expectations
and limitations” and “ Earn it”.

» “IMPOSSIBLE IS NOTHING”
 Discussion
 With an initial Price tag of $250,the high-tech Adidas-1 is not
targeted at broad market. What role can the Adidas-1 play in the
company’s public relation plan?

 To gain even great popularity among athletes and sports teams.

 Allows adidas to gain greater recognition for technology in sports
to improve athletic performance.
 The quality or the performance of product must excel in such a
way that public would do away of the amount.
 A high priced shoe in excellent performance.
 Let the public view the product Adidas-1 as a Futuristic shoe, this
is the edge.
Adidas-1
 Suggestion
 Create more Endorsement program with professional athletes
for Sports Performance products
 Aggressive advertisement in USA for Adidas Original and Life
style product
 Keep building brands equity(buying out companies)
 Easy availability of products by opening more concept stores
 Focus marketing efforts at large sporting events on key products
 Tie up with local manufacturer to get critical information about
foreign market.
 To design a high quality shoe meant for use by athletes in the
local popular sport
 Sponsor a premier soccer team for the world cup 2010
Thank You …..