A SURVEY REPORT ON “MARKETING STRATERGY OF ADIDAS” mitted in partial fulfillment of the requirements for the three yea: Bachelor of Commerce (B.COM) (Affiliated to Mahatma Gandhi Kashi Vidyapeeth Varanasi, Uttar Pradesh) SESSION-2024-25 Under Supervision of: Submitted by: Ms. ASMITA KHANNA SHAURYA JAISWAL Assistant Professor B.Com Vth Semester SMS Varanasi RollNo BCOM2209074 "a V < School of &. [= a S Management Varanasi SciencesACKNOWLEDGEMENT First I would like to thank almighty for keeping me heathy and active because of which I was able to complete my project successflly. | express my greatest gratitude to our Prof, P.N. JHA (Director) of SMS, Varanasi who gave me such a great opportunity to work on a project where I can show my creativity, my mentor Mr. ASMITA KHANNA , Assistant Professor for providing me knowledge, guidance, and fill cooperation extended during the perusal of my project. And at the last but not the least I woukl ike to thank Dr. Chandra Shekhar Singh (Course Coordinator B.COM) and Dr. Santosh Kumar (Course Co-Coordinator B. Com) who helped me and enlighten my path, This report is the outcome of the support which I have received from people directly or inci Fimilly, 1 woukl like to show my gratitude to all my family members, fiends, faculty members of SMS, Varanasi whose guidance have helped to complete this report Name B.COM 5" Semester Roll Number- BCOM2209074DECLARATION | SHAURYA,, student of B.Com 5 Semester from School of Management Sciences Varanasi hereby declare that Ihave completed this survey report under the guidance and support of (Mentor Name and Designation) The information that I have written in this project is original to the best of my knowkdge. The content that Iam sharing is not copied and is writen. by myself. Name B.COM 5" Semester Roll Number- BCOM2208074ADIDAS AS A COMPANY Adi Dassler founded the German sportswear company Adidas in 1920. It was formerly known as Dasslers Brothers Shoes Factory when it was first created, and later on, it was rebranded as Adidas in 1949, Initially, Adidas heavily invested in improving the effectiveness of football players on the pitch & later, they started designing personalized shoes for other sports athletes like Muhammad Ali, Kathrine Switzer, and many more. In the 1936 Berlin Olympics, Dassler's Uniquely designed shoes began to get appreciation all over the world when Jesse Owens, by wearing Adi's track shoes, achieved the triumph of winning four gold medals. A quantum leap came for Adidas when Germany won its first-ever FIFA World Cup in 1954 by wearing shoes designed by Adidas that caught people's attention worldwide. Adidas as a brand. In the 1960s, Adidas started bringing up sportswear for vatious sporting events and started producing training wear. They started designing and manufacturing balls in 1963 & Since 1970, the official Matchball at all major soccer events, from the European championship to the World Cup, is designed, manufactured & supplied by Adidas. In the 1980s, as Hip-Hop culture grew day by day, Adidas started heavily investing in shoes for street fashion and Hip-Hop. Their most famous line of street fashion shoes was the superstars; since then, ‘Adidas has focused morely on innovating new technologies to maintain the quality of their product. In the 2000s Haile Gebrsclassie's Adizero Adios Neftenga, the shoe in which he broke the world record for the marathon, became a cultural icon. With Ian Thorpe's racing suit, Adidas made its entry into performance swimwear.= It is one of the comprehensive range sports apparel manufacturers in Europe and the Second- largest sports apparel manufacturer globally. In 2020, Adidas's net worth was approximately around $16,48 billion. ADIDAS The Brand ‘Adidas Three-bar logo, emphasize on developing &creating a! A est products for atheletes which helps in improving the adidas performance of atheletes in major sports such as football, basketball, running and training wha ‘Adidas Trefoil logo emphasize on daily sportswear, training Za —— equipments and street style fashion wear which includes | adidas different labels such as the adidas neo, y3 sports shoes ete Over the years, two logos are playing prominent roles for the Adidas group BRAND SLOGANS. ADIDAS VISION STATEMENT ‘To be the most influential and leading brand in the world of sports ADIDAS MISSION STATEMENTAdidas's sole focus is to revamp sports to the next level. Theit main aim is to enhance social and cultural life by bringing men and women to the same level, making all the communities stand together hand in hand. Adidas is also involved in various sporting events and provides financial aid to the growing young talents, and gives them the platform to sueceed at a very young age. Adidas always strives to push its innovation to the next level. Their primary goal is to come up with the best products on the market. They mainly emphasize the needs and demands of customers as much as possible effectively. They created numerous innovative sportswear products to provide consumers with a high-end product rich in quality Adidas mainly focuses on ethical values, designing higher quality products, focuses on enhancing. performance, and they also do set a roadmap to protect the environment while also doing research and innovation at the top level; since their mission strives towards protecting and conserving the environment, they came up with an invention called The future craft loop, which helps in recycling old shoes and makes products from available waste materials 1-3 BESsitt_icori wWwnit Ss H.sSeve £1.918 Bieior Is7-S0e 107 ADIDAS Value Proposition Innovation = Whether it is to retrieve the 3D printi ‘oles to ease the process of personalization or coming up with the newest innovations such as 10¢ clable performance footwear, which is perfectly oriented with their vow to conserve oceans, Adidas is always one step ahead when it comes to coping up with the demands of consumers with growing technology.‘= In the early 2000s, Adidas developed a unique shoe named Micropacer, which provides a micro- sensor inside the shoe that records athletes’ calorie consumption per day, tracking speed, distance covered, calories burned, which signifies Adidas strives towards innovation & research. Adidas also became the first sportswear brand to come up with an inbuilt microprocessor inside sports shoes in 2004. Customization + Adidas offers a full-fledged advantage to the consumer — customization on @ mass scale, allowing consumers to customize their product according to their preferred size and shape while lowering costs and manufacturing time with conventional processes, ‘Adidas also offers a sneaker customization program for their existing and new consumers. It lets them pick from various sizes, colors, and prints and add their name, a country flag for the team logo, ete. + Adidas also developed mobile app that gives customers more creative freedom to design their sneakers according to their preferences. Brand / Status Adidas has always been known for their superior quality and the price range within which they sell their products to their consumers, which set them apart from other brands available within the same category; they relentlessly focus on innovation and always comes up with an innovative product on every segment of sportswear; in this way, they create a brand image and a strong and positive perception of Adidas globally. Physical feat) [vats Patatatay n eee1) Product Strategy * Adidas is a world-renowned brand dealing in different products like footwear, accessories, apparel, golf equipment, ete. * Ithas a strong presence in almost all the significant sports, i, Football, Cricket, Baseball, Basketball, Gymnastics, Tennis, ete * Italso sponsors some of the major teams, which have a dynamic presence and following all around the world to sell its products like jerseys, kits, and sports equipment. ‘* Adidas acclaimed much fame from its subsidiaries like Reebok, Runtastic, and Rockport. There are approximately 110 subsidiaries worldwide, with a few of them overtaking Adidas itself, like Reebok, which has a footwear and apparel product line. © The Foundation of this brand was footwear, and they have maintained a stronghold in this line, still ‘acquiring significant market share in India, 2) Promotion Strategy + Its primary advertising strategy includes Adrenaline pumping TV ads about showing some sport generating heart-burning desire and an intense passion in the audience. * Another method of promotion includes exploiting their tie-ups with significant sports celebrity icons like Lionel Messi, Paul Pogba, etc.* Adidas also sponsors some significant Football clubs like Real Madrid in La Liga, Juventus in Serie A, Manchester United in the Premier League and Bayern Munich in Bundesliga. These clubs mentioned cover all the major leagues in football and also have a considerable following, ao YO a 6 Emirates SN tite’ * Other than the above, Adidas also advertises through a social media campaign, one of which is "Own the Game” which is expected to generate significant sales and profits until 2025, 3) Price Strategy © Adidas beautifully uses the competitive pricing and price skimming processes as a part of its pricing strategies. * Competitive pricing strategy is mainly used to counter other brands in this line like Nike and Puma. This is used chiefly for run-of-the-mill products. © Price skimming is a strategy where new produets are introduced with higher prices to maintain their specialties. Along the passing of time prices are reduced until it reaches the average market price. This strategy is used for apparel products by Adidas to maintain its brand equity targeting the upper class and upper-middle class. + Apparently, the above pricing strategy makes Adidas a luxury brand having a profound psychological impact on mostly youth minds boasting its quality and authenticity.4) Place & Distribution Strategy In terms of Infrastructure, Adidas has 800 factories in around 55 countries across different continents. Having more than 2800 retail outlets globally is the primary driving force behind its vast sales. Goods are also sold through multi-brand showroom And lastly, nowadays every brand is available at online stores like Amazon, Myntra, Flipkart Adidas also has an online website selling apparel and stuff. 5) People Strategy We can di The first would be the mediating people who work with the leading supplier of raw materials ide this into four significant departments to ensure the brand efficient working having a significant role in the quality of the finished goods. The sales and marketing team is responsible for brand image, advertising, signing prominent personalities and teams for brand promotion. The next are people working at offline stores equipped with different techniques to help customers find their expectations and entice and trap customers into buying other products. They have a significant role in inereasing sales for the brand. ‘And the most important to mention here is the Customer support department helping the customer resolve their issues with the products by quick replies. 6) Process Strategy Adidas has a very efficient process involving ordering to delivering of the goods. ‘They use a system with the functionality from which retailers can inform the warehouses whenever the inventory is low. This is done keeping in mind always to keep the product available for the customers coming to the stores. Similarly, there is a computer-based system for online stores also listing all the relevant information regarding deliveries. Adidas is substantially involved in customer feedback and market researches to keep in touch with the changing marketing trends and understanding customer preferences. 7) Physical Evidence Strategy* For offline stores, Adidas has separate shelves solely with the purpose of showing the product to the customer. Further, the products are packaged in different colors to make them easily locatable and identifiable. * For online stores they have an immensely customer-friendly website allowing the customers to view the product from different high-resolution images with zooming functionality. ak fore] [elorg Marketing environment of Adidas Microenvironment 1. Company The environment of intemal management is good as various departments are working in achieving the organizational goal jointly; this can be seen that every year finance dept. of the companies is passing vast amounts in advertising for competing well enough with their competitors as Nike is spending huge amount to capture the markets and company is putting the large amount in R&D to take advantage upon their rivals into the market. Conclusion: there is perfect internal coordination ean be seen in internal management; it can also through the operational revenue increasing trend as the company is also putting considerable funds to mect the demand by increasing their supply to the ‘consumers so they can be presented at the right place and time, Here are some graphical representations which show the annual company budget passed for various departments by the finance dept. which results in massive sales over the years! ‘Advertising Budget of Adidas , in ion dollars) asa 5R&D Budget of Adidas (in a million euros) This figure shows that the finance department and top-level management supporting the marketing Dept. 2. Suppliers: ‘They have a direct contractual relationship with the brands, followed up by various sub-contractors. As one of the most crucial sportswear brands, Adidas has the responsibility to set the standards among other e ing and new companies whether they are competitors. Adidas constantly urges its suppliers to be on the same page; it sets guidelines for them to follow through the whole process. Although Adidas has long-term relations with some of its suppliers, they also provide the best prices for their materials to ‘maintain long-lasting relations 3. Market Intermedi ies: Adidas has a very efficient distribution worldwide; their stores are present in every major city. Adidas focuses on Top cities drive brand distribution strategy; they are making themselves in every top city to give intense competition to Nike. Adidas showrooms are available in every shopping center where there are its other competitors. Also, the company is providing a good margin to their distributors to retain their distribution channels.4, Competitors: Adidas is running its operations in very tight competition; their rivals like Nike, Puma, and Skechers are also doing «great in the market compete with these rivals Adidas is investing a tremendous amount in R&D for giving more value in their produet compared to their rivals. Adidas is also sponsoring various football clubs and sports tournaments to be more visible in the market to get more visibility than their rivals. They are also endorsing their product through celebrities to attract their fans’ attention towards their products and run various eampaigns to inspire the youth 5. Customers: To retain the customers, Adidas is consistently making efforts to engage their customers by not only providing additional value to their product but also running various campaigns to inspire the young generation launching Adidas app in which sports and fitness enthusiasts have access to get tips from professionals and, they run campaign named "ODDS" in 2016 where they support the Paralympics player such thing hit consumer minds and create an emotional engagement also. There is a various campaign which has successfully help in creating engagement. As Adidas is known for its sports product, they are also diversifying their product line by introducing a various causal and stylish line of products also, They are not only providing great values but also keeping engage their customers too. MA IRE Fr tr Ar NVI on inc TlhANMacro-environment: All the external factors affecting business externally are being discussed through PESTLE analysis and Adidas or any other company cannot control but to run its operations efficiently, they only can adapt to it PESTLE ANALYSIS 1. Political Factors: Adidas supplies, ships, and distributes their product worldwide. As Adidas is spread worldwide, they have also hired a team of specialists = who guide them regarding how to adapt to the environment to run their operations smoothly. It also help to increase awareness about political =s procedures and increasing supply chains for selling products offline or ay online. Each country has its taxation system or owns trade policies. 2. Economic Factor: Adidas is competing against the Nike and various other brands. ui Moreover, due to this factor, they maintain highly competitive prices. Flat) The global economy factor also helps Adidas to research where they have to sell products or by which mode they've to distribute it, Adidas plays smart with the price of its materials. They face continuous challenges when importing-exporting goods because of changing, policies of government. The rise of counterfeit products also create obstacles for Adidas sales. 3. Social Factor: Adidas frequently changes the designs and style of their products as per the recent trends. Their products are often for all gender, or for every lifestyle for ex- adidas is also offering casual sneakers as more and more youth are following this fashion or you can see that they are also producing limited =F edition sneakers for dance lovers and many more al Y ees edition sneakers for dance lovers and many more all they ¥ adidas provid Peete it for all ages. They have be covering all the different kinds of lifestyles that have an impact on youth. They mainly focus upon health-conscious buyers who a love of sports. Adidas also supports the Olympics like in 2016 they support Paralympics player and various sports leagues, and these things are are them to increase their marketing opportunities as they are engaging them emotionally and also provides values thus it'll also help attracting new audiences around the globe. They keep on inspiring people maintain quality with health trends and preferences to increase the number of audiences.‘Technological Factor: As there is new and advance technology is coming into market for making high quality, like re if nike comes with their own technology of making high quality products so it'l will definitely affect Adidas customers so in order to retain they also have to come with more better “ technological advancements and tests its produets under varying conditions. Making innovation in making the product more comfortable. They keep ‘on optimizing the performance their products, so they give best performance products for their coaches and professions athletes of the sports field. Adidas creates & us sits own technology, which helps the ‘company to have unique features in their shoes and help them to stay one step ahead into making sports products. Adidas keep on finding technological advancements to develops an edge over the ‘competition, For example ~ Boost technology. 5. Legal Factor: ‘They has ownership of the IP system and intellectual properties. They have also successfully adapted to the legal scenario of each country with the help ofa specialistteam Qdidas 3h. dida Gdidas who guide them legally too. To protect themselves against infringement they have = ~ * * al gg = cdides patents which them rights defending against adidas adidas. their copiers, and it also give them legal protection to end their counterfeit businesses. 6, Environmental Factor: Adidas is playing their duties for environment Fs very excellently they are continuously making efforts to det es environmental impact of the plastic product that they se uses in past for making shoes by offering natural materials in their products. They are focusing on shifting towards using more organic raw material and are using waste plastic remains from oceans to‘make their products. They keep control of the different organic and volatile compound emissions, Adidas focus is focusing upon production of more sustainable products. It helps them in increasing their brand image as a eco-friendly organization and also in increasing product quality. Adidas Segmentation, Targeting and Po: ning Analysis ‘Adidas is an MNC and with an origin in Germany that is one of the biggest sportswear manufacturer in the world which includes clothing, footwear, and accesso for both men and women. Adidas put in regular efforts to improve the quality, looks, and designs to exceed customers’ expectations. This report educates Adidas segmentation, targeting, and positioning in the market. Market Segmentation Adidas segments its marketplace into unique segments because of other clients' preferences and likings Adidas segment customers like athletes, gym freaks, athletes, and brand lovers. Adidas has different types of products which are Neo, Style, Originals, and Performance. Adidas Originals has clothing and shoes of a limited edition with more colors but a less sporty look and more street-styled. Adidas enhances people to play sports. Adidas's performance mainly focuses on football players and is in partnership with sports groups like Real Madrid. They are designed to maintain its loyalty towards athletics. Thirdly, Adidas Style has apparel that can be trendy but also sporty simultaneously. It is generally popular between teenagers. The latest addition to it is Adidas neo, which targeted younger groups from 14-19 years of age. Consumers with elevated social status buy merchandise from Adidas, which can be on the more expensive side, Even middle-class customers are capable of buying items that are affordable to them. (Psychographic traits) Sports enthusiasts usually buy their products from Adidas only. Similarly, Consumers who prefer street-style apparel will select Adidas Originals or Style as they are designed for streetwear. (Behavioural characteristics). Adidas has clothing, accessories, and footwear that are preferred by both men and women (adults/kids), which provides a wide variety of products for different age/gender groups, therefore, attracting and targeting larger audiences (Demographic traits) Adidas improves it's ability by regularly asking for feedback from their customers which in return add a unique value to their Products and help company to compete effectively and profitably among its strong, competitors.Market -Targeting Adidas targets the consumers who have been passionate about fitness and sports and the existing customers since the beginning, Their primary target audience is 20-30 years of age groups passionate about sports and is into athleties. Adidas is now focusing on teenagers of 14-19 age groups interested in sports as they believe that the future generation will improve the brand value and will influence the customers the most. Adidas has various products, which makes it popular even between the 40-60 years aged groups. Adidas products are usually higher priced due to the quality and brand equity in the market. Hence, they target customers of upper middle class! high end customers. Market Positioning Positioning is the last process in the STP. Adidas positioned itself as the largest sportswear manufacturer in the world which includes clothing, footwear, and accessories for both men and women . Adidas positioned itself as a brand for people who want success. They convince common folk that they can be successfill by wearing right clothes just like their favourite athletes which are shown by adidas in there advertisements, ‘The brand has positioned itself as the performance enhancer or booster for upcoming athletes. Adidas also have their tagline " Nothing Is Impossible” It has its own brand value among consumers. Types of Buying Decision behavior Consumer Buyer Behavior is the behavior of consumers involved in buying and consuming products Stages of Consumer Buying Behavior The Consumer Buying Process L. Problem Recognition ‘The first stage is that of problem recognition. After the problem is recognized there must be a product or services which can solve that problem, 2. Information Research: once the problem is recognized the second stage is that of information research, The consumer will look to the product which can solve their problem or issue. Information collected can be both internally or externally.3. Evaluation of alternatives: After doing primary and secondary research, consumers make a list of brands which can provide those product and services. 4, Purchase decision: Then comes the stage when consumers are ready to buy the product after evaluating different alternatives and choosing the right product which can solve their problem. 5, Purehase: There was a need, there a product with various alternatives available. After all research is done customer goes and buys the product. 6. Post purchase evaluation: After the customer has made the purchase if customer is satisfied with the product, he may buy it again and if dissatisfied he won't. Consumer Behaviour * Consumers purchases Adidas products for exercise practice like jogging, playing Football, Basketball, fashionable lifestyle ete. Also, since customer buy adidas product for its durability so they might face dissonance while buying adidas product ..So customer also undergo dissonance reducing buying behaviour. © Due to durability and comfort Adidas products are also used for some casual occasion as well '* Mostly, consumer products are influenced by Personal de 85. ‘+ Environmental factors like such as celebrities like sports persons wearing the brand. ‘© Adidas has positioned its product in such a way that it not only satisfies consumer static needs but also unstated and desire needs as well. By providing both sports and fashion desire at the same time. '* Adidas advertise or promote its product in such a way that it defines a person as confident and comfort loving person. '* Moreover, advertising in big sports events and endorsement from Celebrities influences the consumer to buy the product. * Also, a significant peer influence which affects the consumer behavior towards buying the product, With majority of youth or Millennials believes in having a sporting, healthy and fashionable lifestyle. Hence, this factor plays a major role in consumer buying behavior in the market. © The huge customer base or customer loyalty and premium market price are a major buying factor. ADIDAS COMPETITIVE ANALYSIS Adidas, Nike & Puma are the leading sportswear brand worldwide; these companies emphasize quality and Innovation. The market segment and targeted customers are pretty similar in each of these three companies, but they follow different marketing strategies while broadening their reach worldwide.eau CO Toe OR SERVICE Penta COLLECTION GENERAL AUTO EN} RIS) Adidas is the world's second-largest sp ortswear company. BRAND VALUE: $14.3 billion Adidas products ranges between mid-level pricing to high level pricing Adidas has vast collection of shoes and it makes unique shoes for every season and situation, Sports-related activities on social media and other programs have aided Adidas to be one of the best sportswear companies in the world, Adidas has various brands and sub- ‘brands with their own identity and positioning, providing a platform for Jong-term profitability and market share Constricted supply chain: Adidas is, dependent on suppliers from all over the world, mainly from countries like Vietnam, Cambodia, and China, which creates a restricted supply chain, This leads to the outsourcing of production activities and limited control on produ Address Potential customers needs and desires: They regularly ask for feedback from their customers which in Nike is the world’s largest sportswear company. BRAND VALUE: $122.3, billion Nike is costly. Nike offers no discount except the military discount. Nike has a vast collection and it makes shoes for every season and every different situation. Nike is recognized globally and is associated with different sports events like Football World cup, Olympics and other events which have created top awareness in mind of its ‘consumers and its brand value Bounded market: Nike's central market is in North ‘America. This is even though Nike is a brand that is known globally. The ‘middle-income group, mainly in developing ‘countries like India, considers Nike's products expensive. Complete Control of Business: All the physical as well as online outlets of Nike are controlled by it without any outside Puma's rank is third in the list of the world's largest sportswear companies. BRAND VALUE: $6.8 billion Puma is comparatively cheaper. The brand's variety will not fail to seize your awe. Puma, despite having a vast collection, fails to offer as much as Nike and Adidas. Puma has a vast collection as well but it doesn't make shoes every season like Nike. Puma sell their product less than their competition to stay relevant in the market. It is also promoted by various famous sports personalities on various advertising platforms, In India its main focus is to ‘generate revenue from cricket by sponsoring the Ranji Trophy. Cut throat competition: Puma's Market share is ‘much smaller than Adidas and Nike's, and it faces significant ‘competition from them. ‘The revenue and income of both the companies are more than that of Puma Innovation Puma has a strong Research and Development team. One of the examples of such Innovation is with the