PRESENTATION ON INTERNATIONAL
MARKETING STRATEGIES
Adidas In India
• 1989 - Entered India , license agreement with Bata
• 1996 - Joint venture with magnum international trading Co. LTD.
• 1998 - Sachin tendulkar is brand ambassador of India
• 1999 - Introduced the cheapest range of shoes they had ever
sold
• 2001 - First televised advertisement for India- paes and sachin
• 2004 - Advantage adidas campaign in. 30% growth milestone
• 2005 - Andreas Gellner is the new MD, India
Marketing strategy
People purchase products or services
for three basic reasons:
✔ To satisfy basic needs.
✔ To solve problems.
✔ To make themselves feel good.
Mission Statement
The adidas Group strives to be the global leader in the sporting goods industry
with sports brands built on a passion for sports and a sporting lifestyle.
•We are consumer focused » and therefore 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 value.
•We are innovation and design leaders » who seek to help athletes of all
skill levels achieve peak performance with every product we bring to
market.
•We are a global organization » that is socially and environmentally
responsible, creative and financially rewarding for our employees and
shareholders.
•We are committed » to continuously strengthening our brands and products to
improve our competitive position.
•We are dedicated » to consistently delivering outstanding financial results.
Market Segments
Geographic segmentation Density: Urban and semi-urban cities
Age: 15 to 35
Demographic segmentation
✔ Income level: >Rs. 15,000
✔ Social class: Upper middle, lower upper
and upper class
✔ Gender: Male and female
Marketing Mix
Product Mix
•Running
Shoes, spikes, socks
•Football
Studded boots, stockings, team-its, warm up suites
•Basketball
Shoes, jerseys n shorts, team kits
•Golf- Taylormade
Hats, gloves, bags, vintage clubs (golf sticks), golf
balls, putters
•Casual
Footwear and clothing
Apparels and accessories
•Tennis
•Cricket
•Lacrosse
•Rugby
•Gymnastics
•Skateboarding
Price Mix
It targets principal consumption centers, namely metros and build significant stand-
alone exclusive store presence in significant locations. The strategy would be to play
to our strengths, i.e. in apparel and mid to high priced footwear.
PRICING (GLOBAL):
Price Range: Men Shoes: $55 to $350.
Sandals: $15 to $40.
Woman Shoes: $45 to $240.
Sandals: $20 to $ 35.
PLACE:
Major retail outlets in India:
Agra, Ahmadabad, Aizwal, Ajmer, Allahabad, Alwar, ambala,
Amritsar,Aurangabad, Azamgarh, Baddi, Bangalore,
Bhatindia, Bareilly, Bhopal,Bhubaneshwar, Bikaner, Bilaspur,
Chandigarh, Chennai, Coimbatore, Cuttack,Darjeeling,
Dehradun, Dhanbad, Dimapur, Firidabad, Ganganagar,
Gantok,Ghaziabad,Gorakhpur,Gurgaon, Guwahati,Haridwar,
Hissar, Hydrabad, Indore,Imphal, Itanagar, Jabalpur, Jaipur,
Jallandhar, Jammu, Jodhpur, Jorhat, Kanpur,Kolkata, Kota,
Kullul, Lukhnow, Ludhiana, Manglore, Meerut, Monga,
Mohali,Mumbai, Moradabad, Mussoorie, Mysore, Nagpur,
Nashik, Newdelhi, Noida,Palampur, Panchkula, Panipat,
Panjim, Pathankot, Patiala, Patna, Pondicherry,Pune,
Rajkot, Raipur, Ranchi, Rothak, Rourkela, Secunderabad,
Shillong, Shimla,Siliguri, Surat, Udaipur, Varanashi,
Vijayawada, Vizag
PROMOTION:
ADIDAS promotes its products through Television advertisement, mobile
marketing, through various sponsorship in sports events, websites, tie up with
various football clubs and international teams. Brand ambassador of ADIDAS
India is Sachin Tendulkar and Sania Mirza.
PROMOTION PARTNERSHIPS:
•Adidas Official Outfitter of National Basketball Association BostonMarathon, Bosto/
Massachusetts, USA April 20, 2009.
•Adidas Official Apparel and Footwear Outfitter Flora London Marathon, London,
UK April 26, 2009
•Adidas Official Sponsor French Open, Paris, France May 24 – June 7, 2009
• Adidas Official Partner of Roland Garros UEFA Champions League Final,
Rome, Italy May 27, 2009
•Adidas Official Ball Supplier of Australia and England cricket teams FIFA
Confederations Cup, South Africa June 14 – 28, 2009
TARGET MARKETS
The target market of Adidas is the urban youth with the brand proposition
‘competition to lifestyle’. The principle consumption centre's namely the metros
are also a potential target market!
MARKET NEEDS
•Comfort
•Durability
•Style
•Price
•Brand
SITUATION ANALYSIS
THE CHALLENGE
COMPETITIVE SCOPES
THE INDUSTRY
ADIDAS is in the sportswear, apparel and sports accessories industry. The
main competitors of ADIDAS in the industry are NIKE, and PUMA since it
acquired REEBOK in January, 2006.
✔ NIKE
Nike is currently the world leader in Sports goods industry with a brand value of
$12,672 million. The company concentrates on style and technology with a high
price range of the products.
✔ PUMA AG
A German based company best known for its football shoes and athletic shoes.
The competition from Puma has become stronger after the 2008 Olympics in
which the Jamaican sprinter Usain Bolt broke records and won 6 gold medals.
Bolt was wearing Puma shoes!
COMPETENCE:
The firm has a stiff competition in the Indian market. Currently, Nike is the
leading player in the industry.
•Multi-Brand Approach
There is a natural limit a brand can achieve given the diverse tastes and
expectations of a highly fragmented consumer market. Thus, a multi-brand
approach will provide the firm with a major competitive advantage and
significant additional commercial opportunities compared to a single brand
strategy. It can leverage the power of its brands in a more precise and
meaningful way, utilizing the combined strengths of each to compete for a
higher percentage of the market, covering a greater number of consumer
needs, price points and demographics.
•Broader distribution
Close cooperation with retailers can significantly improve the in-store experience
for the product. Establishing shop-in-shop formats (e.g. with JJB and Dick’s
Sporting Goods) or retail partnerships (e.g. with INTERSPORT) are examples
where the company is leading the industry. Such co operations can be
particularly effective in markets that have become dominated by price and lack
of differentiation.
•Cost leadership
The acquisition of Reebok has created significant opportunities to reduce and
optimize costs, through scale benefits, back office consolidation and combined
capital expenditure planning.
PEST Analysis Of Adidas
Political factors include areas such as tax policy, employment
laws, human health and environmental regulations, trade
restrictions and tariffs and political stability. In terms of world
politics, global trade is being liberalized by governments; meaning
that products can be moved more freely as follows:
India is not a sporting Country and hence lesser demand for sports
shoes.
Home market lobbying/pressure groups.
Very few sporting events apart from cricket fixtures to attract
customers.
Economic factors are about economic growth, interest rates, exchange rates and
inflation rate as follows:
• The Indian footwear retail market is expected to grow at a CAGR of over 20% for the
period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of
the total leather exports by 2011 from over 38% in 2006-07
• Growing middle class and growing buyer power leading customers to look for
branded shoes.
• Seasonality issues – sports is more of a rage in summers
• Lack of targeting of market segments for kids and women
Social factors often look at the cultural aspects
lifestyle trends – upward shift
Demographics
Consumer attitudes and opinions changing favourably towards
branded shoes
media views
consumer buying patterns
fashion and role models
buying access and trends
advertising and publicity
Technological factors include:
Competing technology development
India offers benefits like low cost of production, abundant raw
material, and a huge consumption market
Research funding in design and requirements
Manufacturing maturity and capacity
Information and communications
Consumer buying mechanisms/technology
Innovation potential
Technology access, licensing, patents
