Adidas is a multinational corporation that designs and manufactures footwear, apparel, and accessories. It has outsourced most of its production to over 1,200 independent factories in 63 countries. Adidas uses both a direct sourcing model where it has direct contracts with core suppliers, and an indirect sourcing model where agents place orders with preferred suppliers or licensees may directly place orders. The document discusses Adidas' supply chain structure, types of suppliers, and the complexity of its global supply chain network.

1. 1
Introduction
Industry profile of Adidas
Adidas is a multinational corporation, founded and headquartered in Herzogenaurach, Germany,
which designs and manufactures footwear, apparel, and accessories. The Adidas group is made
up of Reebok, TaylorMade, and Runtastic.
Supply Chain Structure
Outsourced most of its production work with more than 1,200 independent factories from around
the world that manufacture our products in 63 countries.
• The most dominant sourcing locations are: China India Indonesia Vietnam.
• Supply chain is global and multi-layered, with many different types of Business partners, some
of who are directly contracted factories, and others who are not.
DIFFERENT SOURCINGRELATIONSHIPS
Direct sourcing model
Direct contractual relationships with its core suppliers who are centrally supervised by Global
Operations.
Global Operations manages
o Product development
o Commercialisation
o Distribution Supervision of the manufacture of apparel
o Footwear and accessories for the adidas.
o Reebok and TaylorMade-adidas Golf segments
Indirect Sourcing Model
 Sourced by agents or is made under license.
 Agents place orders with their preferred suppliers.
 Licensees may either place orders directly with their suppliers or use agents as
intermediaries.

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TYPES OF SUPPLIERS
• Main suppliers. They supply products, whether for export or domestic market consumption.
• Subcontractors. Factories subcontracted by our suppliers to perform manufacturing operations
(Main Suppliers are not capable)
• Material and other service providers. They supply goods and services to main suppliers.
• Licensees. In 2011, the adidas Group worked with 44 licensees whose suppliers sourced
products from 269 factories in 45 countries.
• Agents. Independent companies that act as intermediaries to source product manufacturing,
manage the manufacturing processes, and sell finished products to the Group.
Complexity of the supply chain
Adidas Group
supplier
supplier
`
`Sub-Contractor
Online Orders
o Order is placed on the website
o Shipping Methods
o Standard Shipping/Express Shipping/mi adidas Shipping
o Tracking your order
Licensee
Sub-Contractor
Agent supplier
Agent
Sub-Contractorsupplier

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Possible Status are:
 Received
 Transferred
 Order shipped
 Returns Received
 Order completed
4 main Subsidiary’s of Adidas
1. ADIDAS, which is present in clothes as well as footwear.
2. REEBOK which has overtaken Adidas and is one of the leading subsidiary’s in the Adidas
group.
3. ROCKPOT which specializes in outdoor footwear, apparel’s and accessories.
4. TAYLORMADE-ADIDAS made which is focused on golfing clothes, equipment etc.
PRODUCT LINE
o Footwear
o Clothing
o Accessories
ADIDAS SPORT PERFORMANCE
 Primary focus for Adidas.
 70% of Adidas income.
 Main Focus : Running , Football , Basketball and Training Apparel.
RUNNING
o Adidas “Top priority in 2007”.
o Brands of choice for runners on all level.
o Partnering with running retailer.
o Partnership with the global marathon events (such as Boston , London , and Berlin
Marathons).

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BASKETBALL
 Aims to increase its presence in this category.
 Main market is in North America, Europe, and Asia especially in China.
 “It take 5ive”
 Brand ambassadors –Andrew Wiggins ,Tim Duncan, Derrick Rose.
FOOTBALL
 Main focus area at Football.
 World largest Football brand.
 Partnership with Football Associations , national federations , clubs , and individual
players.
 Brand ambassadors – Lionel Messi, Mesut Ozil , Gareth Bale , Kaka, .
ADIDAS MAIN COMPETITORSARE AS FOLLOWED :
 NIKE
 PUMA
 NEW BALANCE
 FILA
 UMBRO

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Company profile
Company Mission
The Adidas group strives to be the global leader in sporting goods industry with sport brand built
on a passion for sports and a sporting lifestyle.
“We are consumer focused and therefor we continuously improve the quality, look ,feel and
image of our products and our organizational structures to match and exceed consumer
expectations and to provide them with the highest rank.
We are committed to continuously strengthening our brands and products to improve our
competitive position.”
Company Vision
Adidas vision is to enhance social and environmental performance in the company and supply
chain, thereby improving the lives of people making there product ,it strives to be global leader
in sporting goods industry.
Adidas Global Strategies
o Adidas has an increased focus on sustainable business and innovation that they hope to
integrate across all of their business strategies.
o Adidas believes that sustainability is the key to growth and innovation.
o Adidas strategy is to build a more lean, green, empowered and equitable supply chain.
Objectives of ADIDAS
 To be the global leader in the sporting goods industry.
 To maximize the group’s operational and financial performance.
 Retail: To become the top retailer.
 To ensure that the brand seize market and category opportunities.
 To modernize the group’s infrastructure.

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Company logos
1.
1929-1949
3.
1950-1971
5.
1971
7.
2002
2.
1949-1950
4.
1967
6.
1991

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 After the merge of Adidas and Salomon in August 1988, they introduced a new corporate
logo. The two colors of the previous group, blue for adidas, red for Salomon was
combined to form the logo.
 The space between the shapes form a shape of a person raising the hand for victories.
This logo only apply on all Adidas-Salomon corporate document only.
SLOGANS
 "Impossible is Nothing" was the previous mainstream marketing slogan for Adidas.
 This campaign was developed by 180/TBWA based in Amsterdam.

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ABOUT ADIDAS
 Founded in – 1924( registered on 18 august 1949)
 Founder – Adolf Dassler
 Headquarter – Bavaria,Germany
 Area served– Worldwide
 Products – Footwear , Sportswear, Sports- equipment , accessories.
 Employees – 53,731 employees
 Subsidiaries – Reebok and Runtastic
HISTORY OF ADIDAS
Adidas (German pronunciation: Adidas (stylised as adidas since 1949) is a German multinational
corporation, headquartered in Herzogenaurach.
Germany that designs and manufactures shoes, clothing and accessories. It is the
largest sportswear manufacturer in Europe, and the second biggest in the world.
It is the holding company for the Adidas Group, which consists of the Reebok sportswear
company. Taylor Made Adidas golf company (including Ashworth), 9.1% of FC Bayern
Munich and Run tactic, an Austrian fitness technology company. Adidas revenue for 2016 was
listed at €19.29 billion.
Adidas was registered on 18 August 1949 by Adolf Dassler, following a family feud at
the Gebrüder Dassler Schuhfabrik company between him and his older brother Rudolf. Rudolf
had earlier established Puma, which quickly became the business rival of Adidas, and is also
headquartered in Herzogenaurach.
Early days
Christoph Von Wilhelm Dassler was a worker in a shoe factory, while his wife Pauline ran a
small laundry in the Franconian town of Herzogenaurach, 20 km (12.4 mi) from the city
of Nuremberg. After leaving school, their son, Rudolf "Rudi" Dassler, joined his father at the
shoe factory. When he returned from fighting in World War I, Rudolf received a management
position at a porcelain factory, and later in a leather wholesale business in Nuremberg.
Adolf "Adi" Dassler started to produce his own sports shoes in his mother's wash kitchen
in Herzogenaurach after his return from World War I. In July 1924, his brother Rudolf returned
to Herzogenaurach to join his younger brother's business, which became Gebrüder Dassler
Schuhfabrik (Dassler Brothers Shoe Factory) and prospered. The pair started the venture in their

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mother's laundry, but, at the time, electricity supplies in the town were unreliable, and the
brothers sometimes had to use pedal power from a stationary bicycle to run their equipment.
By the 1936 Summer Olympics, Adi Dassler drove from Bavaria on one of the world's first
motorways to the Olympic village with a suitcase full of spikes and persuaded U.S. sprinter Jesse
Owens to use them, the first sponsorship for an African American. Following Owens' haul of
four gold medals, his success cemented the good reputation of Dassler shoes among the world's
most famous sportsmen. Letters from around the world landed on the brothers' desks, and the
trainers of other national teams were all interested in their shoes. Business boomed and the
Dasslers were selling 200,000 pairs of shoes every year before World War II.
World War II and company split
During the war, a growing rift between the pair reached breaking point after an Allied bomb
attack in 1943, when Adi and his wife ran into a bomb shelter that Rudolf and his family were
already in: "The bastards are back again", Adi said, referring to the Allies war planes, but Rudolf
was utterly convinced that his brother had been referring to him and his family. After Rudolf was
later picked up by American soldiers and accused of being a member of the Waffen SS, which he
was not, he felt certain that his brother had turned him in.
The brothers split up in 1947, with Rudi forming a new firm that he called Ruda –
from Rudolf Dassler, later rebranded Puma, and Adi forming a company formally registered
as Adidas AG from Adi Dassler on 18 August 1949. Although it is a popular urban myth that
the name is an acronym for All Day I Dream About Sports, that phrase is a "backronym"; in
reality the name is actually a portmanteau formed from "Adi" (a nickname for Adolf) and "Das"
(from "Dassler").
Early years and rivalry with Puma
Puma SE and Adidas entered into a fierce and bitter business rivalry after the split. Indeed, the
town of Herzogenaurach was divided on the issue, leading to the nickname "the town of bent
necks"—people looked down to see which shoes strangers wore.Even the town's two football
clubs were divided: ASV Herzogenaurach club was supported by Adidas, while 1 FC
Herzogenaurach endorsed Rudolf's footwear. When handymen were called to Rudolf's home,
they would deliberately wear Adidas shoes. Rudolf would tell them to go to the basement and
pick out a pair of free Pumas.The two brothers were never reconciled and although both are now
buried in the same cemetery, they are spaced as far apart as possible.

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What is marketing mix?
A mixture of several ideas and plans followed by a marketing representative to promote a
particular product or brand is called marketing mix.
Elements of marketing mix
 Product
 Price
 Promotion
 Place

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Significance of the study
 Adidas is the major brand in sportswearindustry.
 The study was to acquire the information on the marketing mix elements of
the leading brand
 The study helps know the other elements of marketing strategy of Adidas
e.g. the targeting and positioning.

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Objectives
I. To analyse the marketing mix and elements of Adidas.
II. To conduct a swot analysis of Adidas.
Methodology
The entire study was conducted onthe basis of secondary data only

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Analysis and Interpretation
MARKETING MIX(4P's) OF ADIDAS
Adi Dassler, the founder of Adidas, had three guiding principles for his development
work, from the time he made his first canvas training shoe for runners in 1920:
1. To produce the best shoe for the requirements of the sport.
2. To protect the athletes from injury.
3. To make the shoe durable.
1 PRODUCT MIX.
The Adidas group has 4 main subsidiary’s.
1. Its has own brand name – Adidas, which is present in clothes as well as footwear.
2. Reebok which has overtaken by Adidas and is one of the leading subsidiary’s in the Adidas
group.
3. Rockpot which specializes in outdoor footwear, apparel’s and accessories
4. Taylor made cloth which is focused on golfing clothes, equipment etc. Out of all the above
subsidiary’s, Reebok is the strongest followed by Adidas.
INNOVATIVE PRODUCT OF ADIDAS
 Adidas MiCoachSmart Run
 easy to use one button feature.

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 a highly sophisticated sensor embedded in the watch-heart monitoring and other fitness
tracking options.
 sophisticated voice enabled coaching system.
 store your favorite music , Bluetooth connectivity and has up to 4GB of data memory .
Adidas miCoach SMART BALL
is a Bluetooth Smart and app-enabled football with integrated sensor technology for dead-ball
kicking training such as penalties, free-kicks, shooting, corners, long passes and goal kicks.
2 PRICE MIX
Adidas, because of its Style, Design & Promotion uses skimming prices as well as competitive
pricing.
1. For run of the mill products, Adidas uses competitive pricing keeping in mind
competitors like Nike, Reebok & Puma.
2. The products which are newly introduced in the market & are uniquely designed,
Adidas uses Skimming price.
3. Apparel’s of Adidas constantly use skimming price & are higher priced due to
brand equity of Adidas in the apparel’s market.
4. Adidas never uses Penetrative pricing because that will affect the brand equity
of Adidas.
5. In fact, the higher price point helps in the price quality approach and
psychologically, customers think that a higher price will mean better quality as well.

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3 PLACE MIX
1. The major way in which Adidas is sold is through retail outlets.
2. Adidas has its own exclusive stores in which the material is provided directly from the
company.
3. many multi brand showrooms will also have Adidas apparel’s and footwear on display. These
multi brand showrooms get the products from a distributor.
4. The last mode of distribution is online. The products are sold through online medium via
fashion stores like myntra.com as well as the online website of Adidas.
.4 PROMOTION MIX.
The creative team of Adidas is known to pump adrenaline in their customers through ads which
are well made, very creative and filled with energy. These ads attract the customers towards the
brand by sending the right marketing message to the customer.
The tagline of Adidas “Impossible is nothing” is in itself a very powerful statement for the
brand.
1. Adidas markets through various marketing channels but the majority of marketing
is concentrated on television and product placements.
2. Product placement (Brand Ambassador) is the way of promotion for Adidas. The popularity of
the brand is because it ties up with the top players across the world such as Lionel messi,
Ronald inho, Sachin Tendulkar and various others.
3. Adidas also sponsors teams and some of the top teams include Real Madrid, France, Great
Britain (in football), England and South Africa (in cricket) and several others.
4. The line marketing of Adidas includes some very creative outdoor campaigns as well as events
marketing.
4 main Subsidiary’s of Adidas
1. ADIDAS, which is present in clothes as well as footwear.
2. REEBOK which has overtaken Adidas and is one of the leading subsidiary’s in the Adidas
group.
3. ROCKPOT which specializes in outdoor footwear, apparel’s and accessories.
4. TAYLORMADE-ADIDAS made which is focused on golfing clothes, equipment etc.

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Strengths in the SWOT analysis of Adidas
Diversifiedportfolio: Companyhasmultiple product portfolio’s with varied range of
footwear & accessories under brand name Adidas (premium segment) & Reebok (mid
range).
Strong financial position: With its 2400 store globally accounting $4.3billions, the
company is in strong financial position.
Distribution network: By selling it from online stores to company owned stores to
supermarket stores, Adidas has an effective distribution system for their products
available through different channels.
Collaborations & memberships: Strong relationship within the sustainability area with
organizations such as International Labour organization, International Finance
Corporation has given the company an edge over competitors so that they can have
a sustainable business.
Weakness in the SWOT analysis of Adidas
 Premium price range: High price range due to innovative technology &
Production methods have made the brand affordable to limited customers only,
especially in developing countries.
 Outsourced manufacturing: Adidas has 93% of production outsourced to
3rd party manufacturers (largely to Asia) to avail of low labour cost & easy
availability of resources. They are running a risk of over dependency on
outsourcing especially in Asian markets.
 Limited product line: Adidas along with the recently acquired Reebok brands,
has got only 2 brands under their group although they have got deep assortments
within these brands. Thus, there is more scope for product line expansion.

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Opportunities in the SWOT analysis ofAdidas
 Changing Lifestyle: With the saturation of developed economies, changing taste
& preferences, education & changing lifestyle of developing economies, there is a
steep rise in the demand of premium goods & services.
 Market development: Entering into new markets will be the only way to succeed
in the future because developed economies are already having high competition.
 Expansion in product line: Expanding its product line will open a new set of
opportunities while at the same time it can differentiate itself from the competitors
by following this strategy.
 Backward integration: This will be smart strategy if followed by Adidas as it
will help Adidas to secure their patent rights & also integrate their R&D with the
operational team in order to work in open system.
Threats in the SWOT analysis of Adidas
Competition: Although Adidas is a global brand but it is facing fierce competition from other
brands like Nike which is No.1 brand and Adidas being in 2nd Position in this premium segment.
Supplier Dominancy: Due to majority of its production being outsourced; Suppliers have more
bargaining power then the company.
Government Regulations: With its 35% products manufactured in China & 93% of production
happening in Asia, Import regulations, duty & tariffs plays a critical role in the pricing and
success of the company.

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SWOT ANALYSIS
STRENGTH WEAKNESS
 World wide presence in 200
countries.
 Sponsorship to various sports and
event like Olympics, street ball,
soccer, tennis etc.
 Largest market share in Europe.
 Brand reputation in achieving
sports performance product.
 Focus on performance development
and technology development.
 Poor customer service
 Poor Ad agency
 Limited exposure to U.S. market.
 Few influential athletes in Brand
Ambassador portfolio.
 Limited budget allocation to
advertisement.
OPPORTUNITIES THREATS
 Tie up with local market player to
boost the sale-volume.
 Increase endorsement programs.
 Has great opportunity to expand
international market
 E-commerce
 Retail outlet
 Positive and increase through the
effective advertising(for
Technology driven products)
 Global Economic crisis
 Amount of competitors increasing
day by day
 The newly born several brands like
New Balance, Reebook , CAT,
GAP has increase their advertising
budget in recent years.
 Adidas larger competitor Nike has
a grater market share and having a
big budget in marketing activity.

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TARGETING
“A target market is a group of customers a business has decided to aim its marketing efforts and
ultimately its merchandise towards.”
 Targets the youth
 The consumer is from upper middle class.
 The consumer is working and sports lover.
 The consumer is fashionable and stylish.
POSITIONING
Positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative
to competing brands, in the mind of the customer.
 SLOGAN – “ Impossible is Nothing”
 The shoes are comfortable as compared to any than any other segments.
 The apparels are stylish and designed to suit the consumer needs.
 The Eye gears and Perfumes are serving the niche segment.
ADIDAS STRATEGIES
 Focus on the Global major and sports lifestyle markets.
 Women’s market
 Position as “Premium Brand”
 Three different categories of Adidas strategies: Adidas products division , distribution ,
and pricing strategies.
PRODUCT LINE
o Footwear
o Clothing
o Accessories
ADIDAS SPORT PERFORMANCE
 Primary focus for Adidas.
 70% of Adidas income.
 Main Focus : Running , Football , Basketball and Training Apparel.

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Nike Adidas-Solomon
Headquarters Beaverton, OR USA Herzogenaurach, Germany
Major
Markets
Basketball, Cross-training, Running,
Women and Children’s shoes
Soccer, Tennis, Athletics
Key
Sponsorships
Michael Jordan; Mia Hamm; Tiger
Woods; Brazil Soccer
New York Yankees; University of
Tennessee; Kobe Bryant
Strategies � Domestic market focus
� Shifted focus to soccer in order to
gain international recognition
� Started athlete sponsorship frenzy
� Has created new look shoes to
excite "bored customers"
� Nike Team Sports
� Changes shoe designs frequently
to stay ahead of competitors
� Customized products (Nike ID)
� Uses overseas manufacturing
factories to cut production costs.
� Perfected its internet site with
custom footwear options
� Has lead the industry in
advertising and marketing strategies
� European market focus
� Adidas dominates the world market,
specifically the soccer market which is
considered the "world’s sport."
� Sponsors professional athletes and
athletic teams in response to Nike’s
marketing technique
� Tries to cut production time and cost in
order to be more efficient
� Uses low wage labor to cut production
costs
� Has enhanced marketing and advertising
budget
� Has recently tried to expand its market
to sports equipment and apparel

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Outsourcing � Nike is not a production
company; almost all shoes
are outsourced; the home
office in Beaverton
designs, develops and
markets the goods
� Subcontractors in
Taiwan and Korea contract
to other Asian countries
for production
� Assembly factories in
Taiwan, Korea, China,
Indonesia and Vietnam
produce the shoes.
� Nike’s trading company
is the Nissho Iwai
Corporation
� Adidas outsourced its production but the design
and development process is based in Germany.
� In 1993, Adidas moved its production overseas to
Asia in order stay competitive in the industry.

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Conclusion
 Adidas has grown 10 times every 10 years. This is due to their main marketing strategies
and uniqueness from day one.
 Despite a changing marketplace for athletic footwear, Adidas wants to expand their
product lines and marketing reach to become a more powerful global brand.
 The lesson from Adidas to new and old companies is very simple-”Adidas is all in”.

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Bibliography
I. http://en.wikipedia.org/wiki/Aidas
II. https://logos.fandom.com/wiki/Adidas

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