The document provides an overview of Adidas, including its history, leadership, financial details, product segments, and case study issues. Some key points: - Adidas was founded in 1949 and has grown through acquisitions of companies like Salomon and Reebok. It reported $10 billion in net sales in 2008. - The company has three product segments: Performance, Originals, and Lifestyle (Y3). Performance focuses on categories like running and football, while Originals and Lifestyle target lifestyle consumers. - Case study issues include the company's reduced fortunes after changes in ownership, lack of advertising in the US, and opportunities to expand globally and identify new technology products. -

1. Case Study On
MNC : Prof . Manoj Das
ITM, Kharghar, Navi Mumbai , Batch : XIII

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. 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. 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. 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. 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. 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. 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. 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. Adidas

11. Nike

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. 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. 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. 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. Adidas-1

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. Thank You …..