Adidas

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franchise of addidas

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Adidas

  1. 1. ADIDAS By:- Praveen Kumar Sunil kumar Abhay kumar Amit sharma
  2. 2.  Franchise is the right to use a predetermined method for marketing products or services through outlets that use a known name or trademark. Franchising is not a business or an industry, but it is a method used by businesses for the marketing and distribution of their products or services.
  3. 3. The two parties which emerge are: THE FRANCHISOR – He owns the trademark/product/ service and licenses the trademark to another party. THE FRANCHISEE –
  4. 4.  PRODUCT/TRADE NAME FRANCHISE - , the franchisee concentrates on one manufacturer’s product, and thereby acquires the manufacturer’s identity to some extent. BUSINESS FORMAT FRANCHISE –entitling franchisees to make use of a complete business package, including training, support and the corporate name, thus enabling them to operate their own businesses with exactly the same standards and ‘format’ as the other units in the franchised chain.
  5. 5.  LOW RISK EASE OF FINANCING & OPERATIONAL SUPPORT GROWTH ADVERTISING
  6. 6.  ROYALTY/FEES LACK OF CONTROL
  7. 7.  The time span/duration of the agreement. Obligations/duties of the franchisor. Obligations/duties of the franchisee. The territory under which the franchisee will operate. The franchisee fee and the right to use the franchisor’s trademark/brand/patents and signage. The training or support that will be provided by the franchisor. Royalties as may be payable. Support as in terms of advertising and other promotions. Terms of renewal and termination/cancellation policies.
  8. 8.  Adidas was founded by Adolf "Adi" Dassler, in 1948. It is based in Herzogenaurach, Germany. Adidas Group consists of Rockport, Reebok Sportswear Company and Golf Company (including Ashworth). In addition to sports footwear, the company also manufactures other products such as Shirts Eyewear Bags, Watches and other sports goods.
  9. 9. Company Name Sales Revenues Nike $150 billion Adidas $7.4 billion Puma $1.5991 billion Reebok $3.4853 billion Sketchers $221.8 million Saucony $133.2 million K-Swiss $121.6 million Asics $111.1 million Keds $696 million L.A Gear $580 million Asics $465 million
  10. 10.  The Adidas India is a consumer focused organization and therefore wishes to continuously improve the quality, look, feel and image of its products. The sportswear business organizational structures match and exceed consumer expectations to provide them with the highest value. The Group is committed to continuously strengthening its brands and products to improve the competitive position. Adidas is socially and environmentally responsible, creative and financially rewarding for its employees and shareholders
  11. 11.  Across all brands, the sportswear business Group focuses on increasing awareness and visibility, providing clear and consistent messaging and supporting each product at its point-of-sale. One of its important growth drivers in latest years has been the Group’s ability to consistently bring key innovations to the market, create exciting products, superior functionality and attractive designs. The Group is committed to launching at least one new technology or technological evolution per year.
  12. 12.  As sustainable revenue and operating profit growth are critical to the Group’s success, all its brands pursue the most value- enhancing avenues for growth, with particular emphasis on bringing the Reebok brand in line with the Group’s profitability standards. At the same time, the Group remains committed to increasing returns to shareholders through above industry average share price performance and dividends.
  13. 13. Going forward, Adidas have simplified the shape of Adidas’s store chain, by clustering it into three different formats, namely brand centers, core stores and factory outlets.Brand centers, i.e. large stores carrying the full range of each of Adidas sub-brands under one roof, are the bold and powerful statements about their strength, breadth and depth. This format will be kept to a limited number and only in exclusive locations.
  14. 14.  Core stores are the commercial engine for sales and profit across the Group’s retail organization, upholding and accentuating each brand’s reputation. There will be Adidas brand core stores, Originals core stores and Reebok core stores and, depending on their size, they will be categorized and clustered into A, B or C. factory outlets will facilitate the controlled sale of excess stock returned from Adidas’s wholesale key and field accounts, franchise partners, e-commerce as well as own-retail stores. Through improved management of regional inventory and limited planned production, Adidas want to improve and balance Adidas’s product offering and therefore further increase profitability.
  15. 15.  Thank you

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