Adidas (Case Study)

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Adidas (Case Study)

  1. 1. Case Study On MNC : Prof . Manoj Das ITM, Kharghar, Navi Mumbai , Batch : XIII
  2. 2. 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)
  3. 3. 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
  4. 4. Adidas Facts President & CEO Erich Stamminger 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. Description 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. Adidas 2008 Financials Net sales: $10 billion Employees 23,202 at year end 2008 792 Concept Stores (Sport Performance, Originals Stores) Own retail 381 Factory Outlets
  5. 5. Product Segment Performance 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
  6. 6. 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
  7. 7. 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  Poor customer service development 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
  8. 8. SWOT Analysis OPPORTUNITIES THREATS  Has a great opportunity to expand  Adidas larger competitor Nike has a international market grater market share and having a − Retail outlet big budget in marketing activity − E-commerce  The newly born several brands like  Positive and increasing market New Balance, Reebok, CAT, GAP trends can increase through the has increase their advertising effective advertising (For budget in recent years. Technology driven products)  Amount of competitors increasing  Increase endorsement programs day by day  Tie up with local market player to  Global Economic crisis boost the sale-volume
  9. 9. Comparative Analysis Endorsement focus strategy, advertising, The platforms, the endorsement sponsorship programs focusing on major focus strategy, creating a Brand Equity global events, sports associations, and dominant media presence, Model teams, and sub-brands. development of Flagship stores, NikeTown and sub branding. Adidas focuses on sponsorship of teams Nike has their focus on and events e.g. national teams and big individuals like M. Jordan and sport events like the Olympic Games and Tiger Woods different World Championship events. TV and Media ads with personalities like Billboards and Murals on building Brand Mohammad Ali & Emil Zatopek with messages featuring Nike Awareness communicating adidas heritage of sponsored athletes and not innovation, technology products. “We know then- we know now” Sports events like streetball challenge in Estb. flag ship stores and Nike Europe. town shops nationally and abroad. Brand Trendy, modern and cool Sports, attitude and life style association
  10. 10. Adidas
  11. 11. Nike
  12. 12. 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.
  13. 13. 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.
  14. 14. 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”
  15. 15. 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.
  16. 16. Adidas-1
  17. 17. 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
  18. 18. Thank You …..

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