2. • Adidas is the largest sportswear manufacturer in Germany
and Europe and the second biggest sportswear manufacturer
in the world.
• A German multinational corporation that designs and
manufactures sports clothing and accessories.
• Founded: August 18, 1949
• Headquarters: Bavaria, Germany
2
3. FOUNDER
• Adolf "Adi" Dassler
• His brother Rudolf returned
to Herzogenaurach to join
his younger brother's
business
3
4. MISSION
•
The adidas Group strives to be the global leader in the sporting goods industry with
brands built on a passion for sports and a sporting lifestyle. We are committed to
continuously strengthening our brands and products to improve our competitive
position.
VISION
• The company is innovation and design leaders who seek to help athletes of all skill
levels achieve peak performance with every product we bring to market.
• The company 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.
• The company are a global organization that is socially and environmentally
responsible, that embraces creativity and diversity, and is financially rewarding for
our employees and shareholders.
• The company are dedicated to consistently delivering outstanding financial results.
4
5. CORE VALUE
•
•
•
•
Performance
Sport is the foundation for all we do and executional excellence.
Passion
Passion is at the heart of our company and continuously moving forward, innovating, and
improving.
Integrity
The company are honest, open, ethical, and fair. People trust us to adhere to our word.
Diversity
The company takes people with different ideas, strengths, interests, and cultural backgrounds to
make our company succeed. We encourage healthy debate and differences of opinion.
BRAND VALUE
•
•
•
•
•
•
Authentic
Passionate
Innovation
Inspirational
Committed
Honest
BRAND ATTITUDE
Impossible is Nothing
KEY MARKETS
• North America
• Russia
• Greater China
KEY STRATEGIC PILLARS
•
•
•
Gaining sales and market share with key
growth categories such as Running and
Basketball within Adidas Sport
Performance.
Expanding Adidas Sport Style in the fastfashion business.
Maintaining adidas Originals’ strong
momentum to serve the needs of the
fashion-driven lifestyle consumer.
5
6. STRENGTH
• Financial strength
• Effective marketing strategy, distribution mix,
diverse brand portfolio and Supply Chain
Management and Innovations
• Brand Value
• The company has worldwide presence and is
internationally recognized.
WEAKNESS
• High dependency of raw material prices
• Low margin
• Poor share price in U.S. Market
• Customers have high brand switching
OPPORTUNITIES
• Investments focused on highest potential
markets and channels
• Technological innovations
• Tie-up with emerging sports
teams/clubs/players internationally
• Brand building by setting up sports academies
THREATHS
• Price fluctuation in raw materials
• Unstable currencies exchange
• Other brands offer more styles and
varieties
• Pirated/fake imitations affect brand
image
6
7. Market Segmentation
GEOGRAPHIC SEGMENTATION:
Divided the market into different units of
location
• Neighborhood,
• States, cities
• Regions, countries
• Adidas Bold 2009 have operated in urban and
semi-urban cities of India.
BEHAVIORAL SEGMENTATION:
Divided the consumers according to their
attitude, knowledge, response and use of the
product. Below are the behavioral segmentation
for adidas:
• Benefits
• Gym regular users
• Sports lovers
• Athletes
• Image seekers
• Brand freaks
PSYCHOGRAPHIC SEGMENTATION:
Divided different personalities of each consumers
and only key is to be different.
• Achievers
• Well-experienced
• Hard workers
• Goal achievers
DEMOGRAPHIC SEGMENTATION:
Divided into different segments based on the
variables of family size, family life cycle, income,
gender, age and etc. As follows:
•
•
•
•
Age 15-36
Income level: $15,000
Social Class: Upper middle, upper class and
lower upper.
Gender: Both male and female
7
8. Target Markets
• Sports personalities involved in various sporting activities such as
soccer, rugby, athletics and basketball.
• Young people
• Male and Female
• Ages between of 10 to 30
8
9. Product Positioning
adidas
• The brand strive to be the
globally leading and most
popular sporting goods brand
• Focus is on innovation and
technology
adidas Originals
• The first brand leveraging its
sports assets in the lifestyle
area
• Regarded as a legitimate
sports lifestyle brand.
adidas Sport Style
• "Future of Sportswear"
• Includes the labels Y-3
• Porsche Design Sport
adidas NEO, From the track to the catwalk, it helps you to "Style your Life"
9
10. 4Ps
Products
Providing high quality products aimed at
providing the best value to the costumer.
The products portfolio is continuously
enhanced through creations and
innovations throughout the companies
various categories. This is pursued in
order to cater to the various needs and
wants of consumers worldwide.
Well-known brands for sports apparels,
equipment and accessories, the Adidas
group has a diverse brand portfolio
consists of: Adidas , Reebok , TaylorMade
Adidas Golf , Rockport, CCMHockey
10
11. 4Ps
Price
Using adapted pricing strategies,
depending on which market they are
operating in, so as to achieve its goals.
Penetrating attack markets with lower
prices or using market skimming tactics,
for instance.
In intense competition in the global
market, the company is involved in regular
evaluation of its price to ensure that the
products stay competitive at the point of
sale.
11
12. 4Ps
Place
Distribute its products to the consumer
with a strong focus on controlled space,
including: Own-retail business, ecommerce, Shop-in-Shop, Joint ventures
with retail partners, mono-branded
franchise stores, co-branded stores with
sports organizations and other brands.
Hence, a high level of brand control is
provided.
In addition, an “integrated distribution
roadmap” has been set up to ensure
further growth and to increase brand
presence in under-penetrated, affluent
cities, without cannibalizing their own
brands and distribution mix.
12
13. 4Ps
Promotion
Different promotional tools are used in
order to reduce the number of lost
customers and to increase sales.
The group has set up an unparalleled
portfolio of promotion partnerships with
international recognized sports
associations (e.g. UEFA, FIFA, NBA, NFL,
and NHL).
Commercials, ads, apps for smartphones,
product placement, sponsorships for
athletes and sport events (e.g. Berlin
Marathon 2011)
13
14. Strategies
Creating shareholder value
Investments focused on highest-potential markets and channels
Creating a flexible supply chain
Leading through innovation
Develop a team grounded in company heritage
Becoming a sustainable company
Brand’s Broad and Unique Product Portfolio
Brand Extension Strategies
Adidas Core Competencies
–
–
–
–
–
Technology
Customer focus
Brand recognition
Supply chain
Collaboratively competitive
14
15. Why Adidas is number two ?
• Nike has an overall better selection of gym shoes, and basketball shoes
compare to than Adidas.
• Nike have wider variation of types of shoes which ranges anywhere from boots,
to basketball shoes.
• Nike also are endorsed by higher profile athletes than Adidas does.
• Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin
Garnett, who is passed his prime.
• Nike's shoes are also more stylish, and well known.
• Nike have higher modification function for customers on design and technology
15
16. How to improve to rank no.1
in this market?
• Adidas should improve its product lines substantially as variation in products
could lead to better and improved sales which form a major objective of any
business organization.
• Adidas should concern more on innovation along with strategic partnership,
Now, Adidas signed a contract with Samsung to produce a shoe + phone
promotional campaign. In this strategic partnership, both the companies
developed a phone to be used with shoes during training
• Improve brand association of professionals with Adidas is that it has a culture
of technology and has a history of achieving a strong position in the minds of
target customers.
• Adidas should work towards improving market share and being at par with Nike
which is currently the world leader in Athletic footwear. Adidas should focus on
roping in more celebrities to promote their products
16
18. Balance Scorecard
Perspectives
Objectives
Targets
Measurements
2012
2013
12%
Measures profitability a company is for the owner of the investment, profitably a company employs its equity.
New customers
% increase new customers through registration
10%
15%
20%
Promotions/ Advertisment/ Marketing/ New products
200M
Marketing, R&D
Customer retention
% repeated sales through database
% repeated sales through database and
surverys
% increase sales: both new customers and old
customers
72%
75%
78%
Promotions/ Advertisment/New products, good quality,reasonable price
100M
R&D, Marketing, Sales Department
95%
95%
95%
Value customer project/ Surveys
25-50M
HR, Sales Department
60%
40%
60%
Advertisment/ Marketing, more outlets/ New products
200M
R&D, marketing
11.30%
-7.00%
-10%
Cycle process system/ Supply chain and inventory management
7,118M
Production manager, plant manager
20%-40% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing
-
Accounting, Finance, Management
4
3
2
1
2,600M-5,200M Accounting, Finance, Management
Financial Perspective
Sustainable company
Revenue growth
Customers
Perspective
12%
20%-40%
Champion
Increase Share Value
Financial
Perspective
12%
Budget (€)
Return on Equity(NI/Equity)
Net income attributable to shareholders
as a percentage of net sales
Earning per share increased
Operating Margin
Operating Expenses
Net borrowing/EBITDA
Revenue increased
Gross Margin
Share Price increased above standard
Creating long-term value
20%-40%
Programs
2014
10%-15% 12%-16% 14%-18% Indicator of the profitability of the company
8%
9%
10% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing
40%
40%
40% From using ABC costing,ABM,EmployeeLeadershipProgram
below 2
below 2
below 2 Strong balance sheet increased flexibility to the best interest of sharesholders
11%
11%
12% From using ABC costing,ABM,BetterSupplyChainProcess,Sales,Marketing,OnlineRetailer
47.50% 48.0%-48.5% 49.00% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing
10%
12%
15% Better performance of the company
Customer Perspective
Customer satisfaction
Increase demand
Reduce product and supply chain cost
% change in cost of sales
2,500M
1,500M
2,000M
-
Accounting, Finance, Management
Accounting, Production, Management
Accounting, Management
Accounting, Finance, Management
Accounting, Management,Sales,CustomerService,R&D
Accounting, Management,Production,Purchasing
Accounting, Finance, Management
Internal Process Perspective
Internal Process
Reduce standard lead times for footwear and apparel
Perspective
Standard lead times
60 days
< 60 days
Manufacturing flow mangement process/ Customer service management/ Warehousing management/ Physical
< 60 days distribution/Increase proximity to sourcing countries
2,000M
Production manager, logistics, customer service, regional
manager
Production creation system/Quality control management
130M
Research & Develop manager/ Quality control manager
Leadership excellence programme / Best-in-class tools
2,300
Senior management
Product development, creation & innovation
1. Increased number of new ideas
2. Improved quality of ideas
% increase in R&D expenses
No. of successful product launch
12%
17
13%
19
14%
21
Create leadership excellence
% global engagement survey
80%
83%
86%
Enabling employee to reach their personal best
Annual training hours by employee (in hours)
18
19
20
Targeted development programmes
1,200
All management levels
Employee satisfaction
Turn over rate
1%
1%
0%
Rewards programme / Global Salary Management System / Bonus programme, Profit participation programme, Long-term
incentive programmes, Champion Bonus
1,900
HR Department
Creating an attractive work environment
Average length of service (in years)
5
6
7
Work-life Integration Programme
700
HR Department
2
42,541
N/A
3
46,824
850
700
N/A
HR Department
HR Department
HR Department
Learning and Growth Perspective
Learn & Growth
Perspective
Continuing to be the employer of choice
Retaining of Top talent employees
Number or new system support
Online communication platforms to drive employee engagement and learning
Number of employees
Recruitment activities / Employee referral Programme
6
Learning Management System / Ask the Management / e-Learning
46,306 Recriutment process
Reorganization of culture
% product defection
25%
20%
15%
Internal Training Programmes / Employee engagement surveys
2,300
Production and HR Department
Increase the propotion of women in management
% Management position
28%
32%
35%
Mixed leadership team / Work-life integration /Gender balance
2,300
HR Department
18
