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Impossible is Nothing

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Introduction

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 forIndia

1999 introduced the cheapest range of shoes they hadever sold

2001 first televised advertisement for India: Paes &Sachin

2004 Advantage adidas campaign kicks in. 30%growth milestone

2005 Andreas Gellner is new MD, India.

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MISSION OF THE COMPANY

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 thequality, 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 skilllevels achieve peak performance with every product we bring to market.

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

shareholders.

We are committed to continuously strengthening our brands andproducts to improve our competitive position.

We are dedicated to consistently delivering outstanding financial results

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COMPETITOR ANALYSIS

Reebok

STRENGTHS

Found in 1895, Reebok Intl. Ltd. Is steeped in history and heritage Has largest market share in India Has strived on street hip-hop image as its USP Compulsory centralized test for all sales staff

WEAKNESSES

Least preferred brand among the three and currently stagnating

Nike

STRENGTHS

Largest International portfolio of sport ambassadors Sponsors football teams with maximum fan following in India Highest brand image in India according to our survey

WEAKNESSES

Rigid pricing structure Our survey shows Nike behind Reebok & Adidas in market share in India

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MOST PREFERRED BRANDS IN INDIA

CUSTOMERS WILLINGNESS TO PAY

0

5

10

15

20

25

30

35

40

45

Reebok adidas Nike Others

0

5

10

15

20

25

30

35

40

500-999 1000-1999 2000-2999 3000-3999 4000+

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ADIDAS - MARKETING PLAN

MARKETING STRATEGY

People purchase products or services for three basic reasons:

To satisfy basic needs. To solve problems. To make themselves feel good.

MISSION OF THE MARKETING PLAN

To devise a marketing plan and formulate strategies which would help in the

achievement of the marketing objectives of the company which are,

Market penetration gaining market share across all markets in which wecompete

Market development expanding into new markets and addressing newconsumer segments

Awareness - increasing awareness and visibility across all brands, providingclear and consistent messaging and supporting product initiatives at the

point-of-sale.

TARGET MARKETSThe target market of Adidas is the urban youth with the brand proposition

competition to lifestyle. The principle consumption centres namely the metros are

also a potential target market!

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MARKET NEEDS

Comfort Durability Style Price Brand

MOST IMPORTANT FACTOR

BEFORE PURCHASE

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10

20

30

40

50

60

Durability Comforts Looks Brand Others

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PRODUCT MIX

BRAND EQUITY

Adidas

FOOTBALL

Studdedboots, stocking

s, team-its, warm up

suites

RUNNING

Shoes, spikes,socks

BASKETBALL

Shoes, jerseysn shorts, team

kits

GOLF TAYLORMADE

Hats, gloves, bags, vintage

clubs (golfsticks), golf

balls, putters

CASUAL

Apparels andaccessories

0

5

10

15

20

25

30

35

40

45

Nike Adidas Reebok Others

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COMPANY PRODUCTS

ADIDAS

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

NIKE

FOOTBALL

Boots, jerseys, shorts, stockings, team kits, warm up suites,

BASKETBALL

Shoes, jerseys, shorts and team kits

GOLF

Shoes, golf balls, apparel

ATHLETICS

Shoes, spikes, compressor apparel, training kits

NIKE+

i-pods and watches

CASUAL

Footwear , apparels and accessories

PUMA

FOOTBALL

Boots

RUNNING

Shoes, studs, warm up suites and training kits

GOLF

Golf ball and apparelsMOTORSPORT

Apparels, equipments and footwear

SAILING

Chute, board shorts, cruising jackets and accessories

CRICKET

Bats, gloves, pads, footwear, training kits, apparels and equipments.

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COMPETENCE

The firm has a stiff competition in the Indian market. Currently, Nike is the leading

player in the industry.

Multi-Brand ApproachThere 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 distributionClose cooperation with retailers can significantly improve the in-store experience

for the product. Establishing shop-in-shop formats (e.g. with JJB and DicksSporting 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 leadershipThe acquisition ofReebok has created significant opportunities to reduce and

optimize costs, through scale benefits, back office consolidation and combined

capital expenditure planning.

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MARKET SEGMENTS

Geographic segmentation

Density: Urban and semi-urban cities

Demographic segmentation Age: 15 to 35 Income level: >Rs. 15,000 Social class: Upper middle, lower upper and upper class Gender: Male and female

Psychographic segmentation Experiencers Achievers Image drivers Strivers

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ADIDAS z STRATEGY IN INDIA

Adidas strategy in India has been consistent over the past few years. The broad

elements of the strategy are to target the brand to urban youth with our brand

proposition from competition to lifestyle using the authentic sports platform and

build and reinforce credibility through relevant brand ambassadors and grassrootssports marketing programs. Further, it would target 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.

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