MARKETING PLAN BY
The Team: Preeti Bhavadas
Amit Shetty Nithya K.
Jignesh Mehra
Pramila Rawat
HISTORY •
Adidas Inc. is a marketer of sports apparel and athletic shoes. Adidas was formed by German by the founder Adolf (Adi) Dassler during 1920’s.
•
The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik in Herzogenaurach in Germany.
•
Adolf Dassler designed a pair of sport shoes in 1925 and few years later he and his brother Rudolph were selling special shoes for tennis players and began design specific shoes for different sports.
•
The family company later split in 1948. After the split, Adolf (Adi) Dassler founded Adidas and his brother Rudolph founded Puma.
•
The three-stripe logo was designed in 1941 by Adi Dassler and he registered it as a trademark for Adidas after the split.
OVERVIEW •
•
•
Adidas is the group’s core brand and a leader in the sporting goods market. “At the heart of Adidas is- PASSION: Passion for Sports Passion for Athletes Passion for Products. Adidas is a brand built on leading technology and cutting-edge design. It is a brand identified and respected by consumers for its innovative, inspirational and authentic values. Adidas is organized into three consumer-oriented product divisions: Forever Sport, Originals and Equipment. This structure is unique to the industry and reflects the brand’s commitment to meet changing market demands, while remaining anchored to its brand principles and heritage.
•
Performance-oriented footwear, apparel and hardware products will always remain the lifeblood of adidas.
Products of Adidas Group • Adidas • Footwear, apparel, and hardware such as bags and balls • Reebok • Footwear, apparel and hardware • Rockport • Footwear • Taylor Made- Adidas Golf • Golf Equipment: metalwoods, irons putters, golf balls, footwear, apparel and accessories
Adidas in India
• 1989 – Ventured India market on a license agreement with Bata. •1996 – Joint venture with Magnum International Trading Co. Ltd. •1998 – Sachin Tendulkar was the first Brand Ambassador for India. •1999 – Introduced the cheapest cheapest range of of shoes they had had ever sold. •2001 – First televised advertisement for India: Paes & Sachin •2004 – Advantage Adidas Campaign kicks in 30% growth milestone •2005 – Andreas Gellner became the new MD, India.
* Christopher Bezu is the head of Adidas Asia Pacific
Marketing Plan
•
The Game Plan unveiled by Adidas in India is to become the number one sports brand in the country by 2010, either through Reebok or Adidas.
•
In Asia Adidas India wants to become number one company by 2010, as of now India is lagging behind other countries in the region — at number four, way behind the likes of Japan, China and Korea
•
According to Bezu, “In the sports gear market, we are already number two as a brand, and number one as a group company in India.”
•
The company has already commissioned a survey to study st udy consumer trends in India. Besides, it is experimenting with new formats and managing retail operations.
•
About 13% to 14% of our net sales are invested back in developing the markets. That is the growth strategy
Mission of Marketing Plan To devise a marketing plan and formulate strategies which would help in the achievement of the marketing objectives of the company which are; •
Market penetration – gaining market share across all markets in which we compete.
•
Market development – expanding into new markets and addressing new consumer segments.
•
Brand Awareness - increasing awareness and visibility across all brands, providing clear and consistent messaging and supporting product initiatives at the point-of-sale.
Marketing Strategies
•
Adidas outsources its production and only focuses on marketing
•
Adidas believes that marketing is much more important because shoe is in the “shopping goods” category.
• •
Focus and target all sports that are popular in India. Cooperate with famous designers
•
Change the traditional image of sport.
•
Associate their brand with Major Sporting Events.
•
Hire “A” Class sports personalities to market and endorse their various range of products.
•
Partnering with events meant for Young audience like Music channels, Rock Shows, Sporting events to target Urban Youth Market.
Marketing Strategies
•
The strategy of Adidas in India has been consistent over the past few years. The broad elements of the strategy are to target the brand to urban youth with our brand proposition from ‘competition to lifestyle’ using the authentic sports platform and build and reinforce credibility through relevant brand ambassadors and grassroots sports marketing programs.The principle consumption centres namely the metros are also a potential target market.
•
Further, it would target principal consumption centres, namely metros and build significant stand-alone exclusive store presence in significant locations. The strategy would be to play to our strengths, i.e. in apparel and mid to high priced footwear.
Marketing Strategies Adidas is also focused in Marketing with respect to the needs of the customer like; •
Comfort
•
Performance
•
Durability
50
•
Style
45
•
Price
•
Brand
50
40 35 24.14
30 25 13.79
20 15 10
5.17
3.45
3.45
5 0 Pric Pr ice e
Durrabil Du ilit ity y
Comfort
Loo Lo oks
Bra Br and
Others
Marketing StrategyCompetence •
Multi-Brand Approach – There is a natural limit a brand can achieve given the diverse tastes and expectations of a highly fragmented consumer market. Therefore Adidas being a multi-brand entity, their approach provides the firm with a major competitive advantage and significant additional commercial opportunities compared to a single brand strategy. It can leverage the power of its brands in a more precise and meaningful way, utilizing the combined strengths of each to compete for a higher percentage of the t he market, covering a greater number of consumer needs, price points and demographics. demographics .
•
Cost LeadershipThe acquisition of Reebok has created significant opportunities to reduce and optimize costs, through scale benefits, back office consolidation and combined capital expenditure planning.
Marketing StrategyCompetence • Broader Distribution – Adidas follows the strategy of closely monitoring and cooperating with the retailers, so that they can significantly improve the in-store experience of the product. Retail partnerships is also helping the firm to improve effectiveness in the market which is dominated by price and lack of differentiation.
SWOT ANALYSIS STRENGTH • •
Largest International portfolio of sport ambassadors. Sponsors football teams with maximum fan following in India and USA.
•
Highest brand image in India
•
Adidas focuses on performance development and technology development.
• •
Adidas is popular in among soccer and athletic fans Reebok has the largest market share in India
2 8 .2 30
2 5 .2 2 2 .9
25
20 1 3 .5 15 7 .6 10 2 .3
5
0 N ik e
a d id a s R e e b o k P o w e r P u m a
O th e rs
SWOT ANALYSIS WEAKNESS •
Rigid pricing structure
•
Has not done well in the Indian subcontinent market as compared to its competitors Nike and Puma
•
Least preferred brand among the three and currently stagnating
•
Negative image portrayed by poor working conditions in its overseas factories.
OPPORTUNITIES •
Increasing demand in the industry for products available online
•
Increase female participation in athletics
•
New technology and innovation to stay on top of market need.
•
Collaborate with other online retailers to offer Adidas products
•
Positive and increasing market trends can increase through the effective eff ective advertising.
SWOT ANALYSIS THREATS • Nike's strong reputation in the footwear and apparel industry • Strong competition from some of its major challengers in all branches of the business • Economic downturn in Asian Countries • Increase in the Price of Raw materials
4P’s of ADIDAS
PRODUCT Attracting
competitors' customers.
Sharper
product differentiation.
Finding
other products' uses.
Increasing
promotional effort.
PRICE Increasing
usage. Increasing the units of sales. Spec Special ial price packag packages es / cross‑sellin selling g products Reduction in price. Price incentive for increased use
PROMOTION Attracting Seeking
other market segments.
other distribution channels.
Advertising
in other media.
present customers' rate of
PLACE New
geographical markets.
National
market expansion.
Regional Export
market expansion.
market expansion.
Market Segmentation •
Geographic Segmentation: Density: Urban and Semi-Urban Cities
•
Demographic Segmentation:
1.
Age: 15 to 45
2.
Income level: Greater than 15 Thousand per month.
3.
Social Class: Upper middle class, Lower upper class and upper class
Market Segmentation •
Behavioural Segmentation: Pyschographic Segmentation
Benefit Segmentation
• Experiencers
• Athletes
• Achievers
• Gym Regulars
• Image Drivers
• Sports Enthusiasts
• Strivers
• Brand Freaks • Image Seekers
Distribution Channel •
All products of Adidas Group in India are outsourced from Asian countries like Taiwan, Indonesia and Malaysia. 96% of Adidas’s footwear and 78% of apparels are produced or sourced from Asia.
•
Adidas Globally operate on a third party contract manufacturing model. In India, Adidas has two contract manufacturers. One of them is a Taiwan Based company “Apache” based out of Nellore, Andhra Pradesh.
•
Adidas follows a basic franchisee model distribution process. After the footwear and apparels are imported from the outsourced countries to the contract manufacturers. Goods are then distributed to the regional warehouses, from here they are forwarded to respective franchisees. Footwear and apparels are then available to the consumers from these respective franchisees.
Bibliography
• http://www.adidas.com/in • http://www.google.com • http://economictimes.indiatimes.com/ • http://www.thehindubusinessline.com/ • http://www.financialexpress.com/ • http://www.wikipedia.com
Thank You!!!
