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 StatementThe adidas Group strives to be the global leader in the sporting goods industrywith 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 organizationalstructures to match and exceed consumer expectations and to providethem with the highest value.

•We are innovation and design leaders » who seek to help athletes of allskill levels achieve peak performance with every product we bring tomarket.

•We are a global organization » that is socially and environmentallyresponsible, creative and financially rewarding for our employees andshareholders.

•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

Demographic segmentationAge: 15 to 35

✔ Income level: >Rs. 15,000 ✔ Social class: Upper middle, lower upper

and upper class ✔ Gender: Male and female

Marketing MixProduct Mix

•RunningShoes, spikes, socks

•FootballStudded boots, stockings, team-its, warm up suites

•BasketballShoes, jerseys n shorts, team kits

•Golf- TaylormadeHats, gloves, bags, vintage clubs (golf sticks), golfballs, putters

•CasualFootwear and clothingApparels and accessories

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.

•Tennis•Cricket•Lacrosse•Rugby•Gymnastics•Skateboarding

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, mobilemarketing, through various sponsorship in sports events, websites, tie up withvarious football clubs and international teams. Brand ambassador of ADIDASIndia 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 FIFAConfederations Cup, South Africa June 14 – 28, 2009

TARGET MARKETSThe target market of Adidas is the urban youth with the brand proposition‘competition to lifestyle’. The principle consumption centre's namely the metrosare 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 highprice 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 inwhich 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 theleading player in the industry.

•Multi-Brand Approach

There is a natural limit a brand can achieve given the diverse tastes andexpectations of a highly fragmented consumer market. Thus, a multi-brandapproach will provide the firm with a major competitive advantage andsignificant additional commercial opportunities compared to a single brandstrategy. It can leverage the power of its brands in a more precise andmeaningful 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 experiencefor the product. Establishing shop-in-shop formats (e.g. with JJB and Dick’sSporting Goods) or retail partnerships (e.g. with INTERSPORT) are exampleswhere the company is leading the industry. Such co operations can beparticularly effective in markets that have become dominated by price and lackof differentiation.

•Cost leadership

The acquisition of Reebok has created significant opportunities to reduce andoptimize costs, through scale benefits, back office consolidation and combinedcapital 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.                                                                 

• 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

Economic factors are about economic growth, interest rates, exchange rates and inflation rate as follows:

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