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M.DES – FASHION MANAGEMENT AND MARKETING

FASHION DEPARTMENT

BATCH – 2019-20

SEMESTER – I

MODULE CODE: PFMFD103

MODULE NAME – FASHION MARKETING AND PROMOTION

Mentor:
Prof. Anurodh Agnihotri

Submitted By:
Aayushi .J. Bagrecha
Vanshika Rajawat

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Acknowledgement
Presentation, inspiration and motivation have always played a key role in the
success of any venture.
We pay our deep sense of gratitude to professor Anurodh Agnihotri of Pearl
Academy fashion school of Mumbai to encourage us to the highest peak and to
provide us the opportunity to prepare the project. We are immensely obliged to
our friends for their elevating inspiration, encouraging guidance and kind
supervision in the completion of our project.
We feel to acknowledge our indebtedness and deep sense of gratitude to our
course coordinator Vandana Ma’am whose valuable guidance and kind
supervision given to us throughout the course which shaped the present work as
its show.
Last, but not the least, our parents are also an important inspiration for us. So
with due regards, we express our gratitude to them.

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Table of Contents
1. Introduction
1.1. Background
2. Fashion marketing concepts
2.1. Product concept
2.2. Societal marketing
concept
2.3. Marketing concept
3. Marketing environment
3.1. Micro
3.1.1. Suppliers
3.1.2. Manufacturers
3.1.3. Designers
3.2. Macro
3.2.1. Political factor
3.2.2. Social factor
3.2.3. Technology factor
3.2.4. Green and ethical factor
3.2.5. Demographic factor
4. Marketing mix (4Ps)
4.1. Product
4.2. Price
4.3. Place
4.4. Promotion
5. Marketing strategies tools
5.1. Porter’s five forces
analysis
5.2. SWOT Analysis
5.3. STP Analysis
5.4. Business model canvas
5.5. Perceptual map
6 BMG Matrix

Individual reflections
Bibliography

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List of images

Sr.n Details
o
Figure 1 Product concept
Figure 2 Societal concept
Figure 3 Manufacturers
Figure 4 Macro factor: Technology factors
Figure 5 Macro factor: Green & ethical
Figure 6 4P’s: product
Figure 7 4P’s: Price
Figure 8 4P’s: Place
Figure 9 4P’s: Promotion
Figure 10 Competitive Rivalry
Figure 11 SWOT Analysis
Figure 12 Positioning of Adidas

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List of charts

Sr. no Charts Pg. no

1 Macro factors
2 Marketing mix of
Adidas
3 Porter’s five forces
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1. Introduction
1.1. Background
Marketing is made and established to gratify the needs and wants of
customers. In the modest fashion business, businesses are enforced to put
more energy and thought into their marketing strategies and means of
appealing the clients in the initial place. The fashion business has grown-
up enormously in the past couple of years. Newer generations are full-
grown in a period where appearance is seen as an asset. Folks are
0063ontinually in touch with fashion. Magazine stances are filled with
fashion magazines and TV is filled with makeover shows where
individuals with bad appearance are turned-out to be more gorgeous. As
media forages us with rules of looking decent, people are spending more
currency on their own appearance. As the target markets have grownup,
so has the business. As competition has become tougher, industries are
enforced to get back to the essentials; corporate and promotion concepts.
The reputation of operational promotion has raised its head partially due
to hardening rivalry and partly to tightening economic situation.
Classifying target clients and their needs is vital for both the clients and
the industries wallet. [ CITATION Grö12 \l 1033 ]

Adidas is headquartered in Herzogenaurach, Germany. It is a

multinational brand that designs and builds shoes, dress and accessories.
It is the major sportswear manufacturer in Europe, and the second major
in the world, after Nike. It is the holding corporation for the Adidas
Group, which comprises of Reebok sportswear firm, TaylorMade golf
firm (including Ashworth), 8.33% of the German football club Bayern
Munich, and Runtastic, an Austrian fitness technology company. India
has been a very speculative marketplace for Adidas. Despite this Dave

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Thomas, managing director of Adidas in India is determined of the

nation's latent. In 2015, the firm had hired Ranveer Singh a protruding
Bollywood artist as a brand ambassador to the firm's products. The firm
later decided to use the people's almost spiritual esteem for the game
cricket to endorse their brand. It soon launched a new cricket movement
in the nation. The movement was called FeelLoveUseHate with
protruding Indian cricketer Virat Kohli. The firm also trades its goods
online through e-commerce websites such as Myntra, Snapdeal, Jabong
and Amazon. Adidas also has a website devoted to the Indian viewers
that markets and trades goods to its customers in India. [ CITATION Jim19 \l
1033 ]

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2. Fashion marketing concepts

2.1. Product concept
United we stand divided we fall,
a fair method to clarify Adidas'
growth in the business. In 1936,
Dassler brothers traveled to the
mid-year Olympics with a trunk
Figure 1 The shoe that started it all (2011)
loaded with running spikes where
they influenced U.S. sprinter Jesse Owens to utilize them. This brought
about being the main sponsorship for an African American competitor.
Following Owens' ambush of four gold awards, his prosperity solidified
the great notoriety of Dassler shoes among the world's most well-known
sportsmen. Business blasted and the Dassler siblings were selling 200,000
sets of shoes every prior year World War II. Now in the organizations
profession their solitary item was viewed as a customer item for it tried to
fulfill people needs and needs in the region of Olympic style events.
Because of hostile contrasts the pair spilt and more youthful sibling Adolf
"Adi" Dassler established Adidas in 1948. With an altogether new frame
of mind and perspective of things Adolf propelled his organization and
later executed another item blend acquainting a clothing line committed
with various brandishing exercises and even a line for urban wear.
Currently, Adidas is globally known and offers a wide scope of items that
fall in the classes of customer, accommodation, shopping and even claim
to fame items. The huge measure of items along their item blend caused
Adidas to make momentous product offerings. [CITATION Adi11 \l 1033 ]

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2.2. Societal concept

Adidas follows the societal concept as well as CSR, their main strategy is
sustainability. They aimed at reducing their carbon footprints and to
follow the responsibility towards the society, they made a public
commitment ‘To reduce their waste production, energy consumption and
water use by at least 20% at all their facilities by 2020.’ [ CITATION Eri19 \l
1033 ]

Adidas also provides scholarships programs and school supplies to

underprivileged students. Adidas has also given a statement “All
community based like better pay for local workers in the under develop
countries, avoiding under-age employees offer of per sports gear for
talents”

Figure 2 Eco friendly shoes made of ocean plastic (2018)

Recently adidas will produce 11million pair of shoes with ocean plastic
by parley by intercepting plastic waste on beaches, remote islands and in
coastal commodities. “Taking plastic waste out of the system is the first
step, but we can’t stop there”, said Eric Liedtke executive board member
at adidas.

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2.3. Marketing concept

Brand’s e-commerce network is the quickest rising revenue channel and

all the production process as digitized as possible. Changing consumer
behaviors with digital transformation also changes the way how Adidas
works. Technology helps the company to build more direct relationships
with their customers.

Adidas use subsequent digitalization as the key part of their marketing

strategy. For them “Best” means designing, building and selling the best
sports goods in the world. The company spends 90% of their marketing
budget to digital campaigns and social media.

3. Marketing environment
3.1. Micro factors
3.1.1. Suppliers
Almost 100% of production is outsourced to independent third-party
suppliers which are locates in Asia in order to minimize production costs.
The suppliers give an excellent result in cost efficient and high-volume
production in accessories, footwear and garments. Majority of the
products are produced in fewer than 110 manufacturing units globally.
Around half of the suppliers have worked with adidas for almost 10 years
and 15% have the tenure of more than 20 years as Adidas value long term
relationships. There are limited number of own production and assembly
sites of adidas in the countries like four in USA, 3 in Canada and 1 in
Germany. In order to make sure that customers get high quality products,
they ensure strict control and inspection measures to their suppliers and
their own factories. Along with this, the company also promote social and
environmental morals throughout the supply chain. [ CITATION Ano16 \l 1033 ]

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3.1.2. Manufacturers
Global manufacturers managed
product development, sourcing and
distribution for the adidas and reebok
and for adidas golf and ashworth.
They work with 297 independent
manufacturing partners. Adidas 80%
independent manufacturing partners
Figure 3 Adidas manufacturing (2018)
are in Asia, 12% in America and 7%
in Europe and 1% in Africa. [ CITATION Ano16 \l 1033 ].

3.1.3. Designers of Adidas

Marc dolce, Denis Dekovic and Mark Miner, are the main designers of
the Adidas. The vice president of Adidas is Brooklyn bred and creative
director is Marc Dolce at the Brooklyn Creator farm which is an open
source creation center. His role focuses on shaping creative direction
across the entire brand as well as building and fostering positive
relationships within the local community. Dolce, Dekovic and Mark
Miner are the main pillars of adidas’s designing team, each taking on
leadership roles as adidas VP Creative Director of the Brooklyn Farm.
The three help to lead the Farm, and work on advance concepts and
design vision.

3.2. Macro factors

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Political factor

Social factor

Technology factor

Green and Ethical factor

Demographic factor

Chart 1

3.2.1. Political factor

Adidas makes strategies and screen dangerous substance to secure human
wellbeing and situation and furthermore, it secures the privileges of its
representatives by keeping work laws on nation superior way. Adidas a
worldwide organization need to consider the worldwide, radical state and
household radical issue. It is critical to screen the government's laws
which influence the matter of Adidas. Since the political field has a many
impact upon the guideline of government and private sector
organizations, and the spending intensity of buyers and different
organizations. It has turn out to be essential for Adidas react and
productivity for these issues. The administration enters into any trade
contracts Adidas needs to keep it on track since it might influence the
business. Government tax assessment strategy assumes a remarkable job
in organization's benefit. [ CITATION Boo16 \l 1033 ]

3.2.2. Social factor

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There is no hurdle for Adidas items like raise, age, religion, and way of
life, it is always in style with various strategy or design in any item.
Adidas center in individuals who like sporting and games, close everyone
past the limits. [ CITATION Boo16 \l 1033 ]

3.2.3. Technology factor

Adidas
acquaints new
approaches
with doing
innovative and
ancient things,
Adidas link

Figure 4 Adidas high technology running shoes(2014)

into
innovation by
make up the world's first "smart shoe", including a microchip inside the
shoe and remote mp3 player. Adidas utilizes hot decompose arrangement
of creation which is atmosphere friendly. Moreover, the packaging
framework, storing framework and conveyance of items are variously
best in relating with different organizations. [ CITATION Boo16 \l 1033 ]

3.2.4. Green and ethical factor

Expanding on various
environmental establishment over
the previous years, in 2010, they
built up a good environment
methodology for the Adidas
group. The system conveys the
Figure 5 Adidas sustainability goals 2020
(2017)

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apparent vision and mission and sets yearly achievements which will
succeed the achievement of the 2015 targets. These objectives shelter
their whole value chain from item development to sourcing and
fabricating and from their very own exercises to their stores and all other
sale points. Their heading is to supervise ecological issues as a unified
piece of their day by day tasks, decidedly adding to the Adidas bunches in
all out-business execution. An environmental system group driven by the
social and environmental affairs (SEA) and comprising of representatives
of all brands and interior processes, declaration to the Adidas group
official board. [ CITATION Boo16 \l 1033 ]

3.2.5. Demographic factor

Suggests to separating the market into gatherings dependent on
demographic factors, for example, gender and age. This strategy has been
utilized for so long in clothing bazaar. Adidas brands products into scope of
male, female and children, as per age and life cycle division and gender
division. Adidas has a marked scope of male and female attire, shoes or
body-care and eye wear. Execution, firsts and style are all the three brands
of Adidas. [ CITATION Boo16 \l 1033 ]

4. Marketing mix of Adidas (4Ps)

Chart 2
4.1. Product

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Figure 6 Adidas product portfolio (2013)

The Adidas group has 4 fundamental subsidiaries.

i. The first is its very own brand name – Adidas
which is available in garments as well as footwear.
ii. The second is Reebok which has surpassed Adidas and is one of
the main subsidiaries in the Adidas group.
iii. The third is Rockpot which focuses in outdoor footwear, garments
and accessories
iv. The fourth is Taylor made which is centered around garments,
equipment and so on.

Out of all the above subsidiary's, Reebok is the most grounded

pursued by Adidas.

Adidas has different items. The main products out of all is Adidas
footwear. Coming in different structure and style, Adidas footwear is
strong and athletic. The secondary products of Adidas are attire's and
accessories. Clothing resembles T-Shirts, coats, sweatshirts, shorts and so
forth are in more demand. Where Reebok is more grounded in footwear,
Adidas is more grounded in apparels.

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The point of Adidas is to give the best footwear to their clients which has
the mix of innovation and plan. These items are not need based. The
shoes are purchased by clients to fulfill their desires and wants.
Furthermore, the fundamental objective of Adidas is sports, but its
apparels are mainly used by the youngsters as a style declaration.
[ CITATION Bha18 \l 1033 ]

4.2. Price
Adidas, on account of its
style, structure and
progressions uses skimming
prices and competitive prices.
For common items, Adidas
focuses on competitive price
Figure 7 Core prices at Adidas (2014)

remembering competitors like Nike, Reebok and Puma. In any case, for
items which are newly presented in the market and are exceptionally
designed, Adidas uses skimming price.

Garments of Adidas always use skimming price and are higher valued
because of brand value of Adidas in the clothing's business sector. The
target client for Adidas is the upper middle class and high-end clients.
Adidas never utilizes penetrative pricing because that will influence the
brand value of Adidas. In fact, the more expensive rate point helps in the
value quality methodology and mentally, clients feel that a more
expensive rate will mean better quality also. Consequently, Adidas hardly
ever drops its costs. [ CITATION Bha18 \l 1033 ]

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4.3. Place
The real manner by
which Adidas is sold is
through retail outlets.
Adidas has its very own
selective stores wherein
the material is given
straightforwardly from
Figure 8 Adidas Outlet (2019) the organization. Then
again, numerous multi
brand showrooms will likewise have Adidas attire's and footwear in
display. These multi brand showrooms get the items from a merchant
(distributor). The third and last method of distribution is through internet.
The items are sold through online medium by means of fashion sites like
myntra.com and on the online site of Adidas. In this manner, the
distribution channel of Adidas is as per the following

i. Manufacturing > Adidas outlets > End client

ii. Manufacturing > Distributor > Multi brand showrooms
iii. Manufacturing > Online design sites/Adidas site > End client

Because of the phenomenal brand value of Adidas, the operating margins

are genuinely high thereby keeping the distribution channel inspired. A
cheerful distribution channel means better advancement for the
organization. [ CITATION Bha18 \l 1033 ]

4.4. Promotion

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Figure 9 Adidas end of season sale (2017)

Adidas showcases through different promoting channels yet most of

advertising is focused on TV and product placements. The inventive
group of Adidas is known to tap adrenaline in their clients through
advertisements which are all around made, imaginative and loaded up
with energy. These promotions draw in the clients towards the brand by
sending the correct advertising message to the client.

The tagline of Adidas "Impossible is nothing" is in itself an extremely

ground-breaking declaration for the brand.

After TV, product placement is the second line of promotion for Adidas.
The status of the brand is on the grounds that it ties up with the top
players over the world, for example, Lionel Messi, Ronaldinho, Sachin
Tendulkar and different others.

Simultaneously, Adidas likewise sponsors’ teams and some of the top

teams include Real Madrid, France, Great Britain (in football), England
and South Africa (in cricket) and a few others.

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Underneath the line advertising of Adidas incorporates some

exceptionally inventive campaigns and events marketing. Sales
promotion and trade promotion are likewise consistently offered by
Adidas to their channel accomplices to advance the offers of the brand.
[ CITATION Bha18 \l 1033 ]

5. Marketing strategies tools

P o rte r's F iv e F o rc e s
5.1 Porter’s five forces analysis

Suppliers

Buyers

Threat of
Substitutes
Threat of New
Entrants
Competitive
Rivalry
Chart 3 Porter’s fiveforces

Suppliers

Suppliers bargaining strength is low which is a direct result of the huge

number of suppliers in Adidas' supply chain. It is a result of their high
number and littler size. While a portion of the suppliers are enormous as
far as size and hold some whack, but not all. Besides, it is simpler for

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the brand to change to new suppliers. In any case, if a supplier danger

losing business from Adidas, at that point it can mean a major harm for
the supplier. Its suppliers are dispersed all-inclusive and separately none
of them can apply any weight on Adidas. Most of the creation at Adidas
is redistributed and it works with in excess of 1000 autonomous
manufacturing plants in 63 nations. It has a worldwide and multilayered
store network with a few sorts of suppliers in the chain, some of which
are immediate contractual workers, and many are most certainly not.
Accordingly, Adidas gets the opportunity to set the guidelines of the
game including labor and product quality measures and the suppliers are
required to agree to. To guarantee that the suppliers’ accord to the
standards, Adidas has kept up a checking and authorization process set
up. Along these lines, it is obvious that Adidas has state of power over
its suppliers. [ CITATION ada17 \l 1033 ]

Buyers

The bargaining intensity of buyers in the event of Adidas is low to

direct and keeping in mind that the individual buyers don't hold any
remarkable whack, as a group they practice to some degree critical
impact. It has a critical competing with Nike and separated from it
there are other of all big and small size competitors like Under Armor
and Puma. There are a few nearby and global brands competing for
market share in this industry. The switching costs are low for the
clients. In any case, this factor to an enormous degree gets directed by
the product quality and marketing of Adidas. Adidas has concentrated
on item quality, structure and execution and it is the reason the brand
has built up a great degree of client honesty. It is the reason the
bargaining strength of the clients gets decreased and turns out to be
low to direct. [ CITATION ada17 \l 1033 ]

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Threat of substitutes
The risk of substitute items before Adidas is low to direct. Its number
of competitors isn't huge but then not all that less either. There are
little and huge; domestic and international competitors which offer
items under a wide scope of costs. Some of them consider the
requirements of the top of the line client while the nearby competitors
offer substitutes at lower costs. The risk from the substitute items is
directed by the nature of products and advertising efforts of Adidas.
To further direct the risk, Adidas has concentrated on marketing in the
metropolitan markets since a huge portion of its client base lives there.
[ CITATION ada17 \l 1033 ]

Threat of new entrants

The risk of new participants for Adidas is low to direct. While a brand
can enter with a little capital on a neighborhood scale, to grow a brand
the size of Adidas requires a huge investment which can be
comprehended from the size of its manufacture and supply chain.
There are a few elements requiring huge investment like innovation,
talented HR, promoting, publicizing and so on. Thus, except if
somebody has enough money to spend entering the business would be
troublesome. Besides, one can't work as much brand value overnight.
It requires some investment also hard work to gain much brand value.
Each of these components moderate the risk emerging from any new
player attempting to enter the business. [ CITATION ada17 \l 1033 ]

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Competitive rivalry

The degree of
aggressive
competition in
the business is
high. Aside

Figure 10 Adidas vs Nike vs Under Armour (2019)

from the
principle
competitors like Nike, Puma and Under Armor there are a few other
littler competitors too which add to the degree of rivalry in the
business. While the degree of immersion in the business has
developed, the current players are additionally occupied with an
extreme fight for market share of the overall industry. Every brand is
putting intensely in marketing and spending billions on publicizing
and sponsorships. While the quantity of top brands is restricted, still
the degree of rivalry in the business is serious.
[ CITATION ada17 \l 1033 ]

5.2 SWOT analysis of Adidas

Figure 11 SWOT Analysis (2019)

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Strength

1. Adidas has very strong collaboration in the field of sustainability

organizations like international labour organization. Their main partner is
international finance corporations who has given them the edge over their
competitors so that they can get enough and more fund for their
sustainable business.
2. Adidas has a very strong and wide coverage; it has 2400 store globally.
3. Distribution channel of Adidas is quite strong for their products available
at online store as well as in stores.
4. Since Adidas has started sponsoring FIFA and Olympics etc. it has
created a great branding and name in the market.
5. Adidas has the largest market share in Europe.

Weakness

1. High price range for all categories because of high pricing only limited
customers can afford it.
2. Adidas has online selling available but according to consumer’s review,
they found it of no use.
3. Adidas is dependent on his external partners for manufacturing, 93% of
Adidas products are from Asia. 
4. And because it has it manufacturing in Asia, this increases its logistic
costs.
5. Comparatively to its competitors like Nike and reebok it has a low

advertising

Opportunity

1. Available technologies are latest innovations.

2. As the increase in economy and financial status of common public there
is change in their lifestyle and demand for premium products.
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3. Entries into new markets is the big opportunity for Adidas because of
high competition in the market.
4. As Adidas has a limited product range and line, so it has a opportunity to
create or innovate new products under its brand name

Threats

1. Nike is the biggest competitor in the market of Adidas, as Nike is on no.1

brand and Adidas is on 2nd position.
2. As its manufacturing is in Asia, it has given more bargaining power to
supplier than the company.
3. Import regulations, duty and tariff plays a critical role in the pricing and
success of the company.

5.3 Segmentation, Targeting and Positioning Analysis

Segmentation
It is a process of dividing up mass market into different group of
consumers, who have similar taste, needs and wants. Segmentation plays
a crucial role so that the company will get to know the consumers in a
detailed manner and to analyse their preferences and then be able to
produce what they want or need.
 Demographic segmentation
Adidas mainly targets the age group of 14-40 years, generally young
consumers. It has different sub brands under it like Adidas neo which is a
brand for age group of 14-22, Adidas originals for different consumer
segment. Although Adidas is a very popular brand in the age group of 40-
65 also who are sports person or love fitness.
 Psychographic segmentation

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Psychographic is the main segmentation of Adidas as Adidas is a

premium brand and not everyone can afford it, so its main targets are
upper-middle class consumers to affluent consumer.
Targeting
After segmentation, the company needs to decide on the Targeting
strategy. Companies need to select the market segments that they want to
focus on and put in their future business strategy. 
 Segment size and growth
 Segment structural attractiveness
 Company objectives and resources.
Above mentioned are the few potential market segments that Adidas
chooses to target for driving their business strategy, sales and marketing
activities.
Positioning

Figure 12 Calling of Creators (2017)

In 2018 adidas launched a campaign “Calling All Creators” in which they

featured the most popular influential athletes, designers, and musicians of
the world and their stories all connected by the passion to create. They
also invited other people to participate in other campaign named as
“futurecraft” to innovate or create anything. After this campaign Adidas
positioned itself as the “Creator Sports Brand”. [ CITATION Ano18 \l 1033 ]
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5.4 Business Model Canvas

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5.5 Perceptual mapping

Perceptual mapping of Adidas is made by taking into consideration the
USA site of adidas and its competitors.
On the x-axis of perceptual mapping is the price denoted by the most
expensive and least expensive whereas on the y-axis is the quantity
denoted by high volume and low volume.

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6. BCG Matrix

Figure 10 BCG Matrix/ Boston Matrix (2011)

6.1 Cash Cow:

For Adidas, its dress and apparels are the cash cow in the
BCG Matrix, and it is essential for the Adidas to think
about this point, and position itself well in clients mind
by focusing on various geographic markets.

6.2Star:
In the Adidas group, Reebok and Adidas are the stars, as
both have the stronger piece of the overall industry;
nevertheless, of the tough challenge they are facing in the
fitness and sports industry, primarily its shoes. The
competitors like Nike and Puma are additionally battling
for the enormous segment of the market share, are the
greatest dread of the Adidas Group.

6.3Question Mark:
Taylor made and Rockport are the question marks for
Adidas, as both have extremely low market share in the
industry yet at the same time have the capability of
developing more in the intensive market. Adidas needs to
amend its strategies for transforming the potential into the
advantages for the key target of the Group. In the product
category, its Sports equipment are the question mark and
it have to focus on this space.

6.4Dog:

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Hats and Goggles of Adidas are ordered in this, on the

grounds that these are the less selling items of the
organization, and numerous individuals are not keen on
spending their cash in it, as they have better alternatives
in this class. Adidas isn't fruitful in beating the challenge
in this range, and as yet battling hard to make due in this
classification.
7.Promotion
Adidas brand is successful in terms of its promotional strategy as they
have made an impact in brilliant executions.
1. Quantity/Product concession
 Buy more get more
It’s been one-week Adidas has come up with the
quantity/product concession promotion in its stores where
the offer says that if you buy goods for Rs 10000 you’ll
get merchandise worth Rs 2000 free and along with that
there’s also another offer that says buy for Rs 6000 and
get merchandise worth Rs 1000 free.

Figure 11 Promotion board of Adidas at Seasons Mall, Pune

 Monthly campaign to drive sales

Adidas promotes some or the other campaign every
month at its retail stores so as to create brand awareness
and to keep in align with its competitors.

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It will display the new products which are launched by

keeping that product on the front display and along with
its banner at the front of the store.
In case, there’s no new product launched then at the front
of the store would be the banner of offers as shown in the
figure 11.

 Innovative cross selling and up selling strategies

Up selling strategy
If the customer is buying shoes then adidas can suggest
insoles by placing an insole in one shoe and not in the
other so that when the customer will try they can feel the
difference.
This strategy will ensure that conversion rates remain
high and that incremental business levels are maintained.
Cross selling strategy

2. Some percent off per item

 Discount codes

Steps to avail the discount

a) Click the green ‘Get Code’ button and copy the
code.
b) Double check the offer and also read the terms to
check whether you are eligible for the order.
c) Go to Adidas website and shop.
d) Now, go to ‘Your Bag’ and click on ‘Promo Code’
e) Paste the code and click ‘Apply’.
f) Lastly, go to check out and pay

 Cash backs
Current cash back offers of Adidas are as follows:

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3. Advertisements:
 Television commercials
Adidas have a large amount of TV commercial
advertisements in the world wide TV network like BBC,
CNN, etc. As TV advertisement is commonly viewed as
the best mass-showcase advertising strategy, as is
reflected by the significant expenses’ TV network charge
for brands during famous TV occasions. The greater parts
of TV ads include a tune or jingle that audience can relate
the product.
Following is the YouTube link of adidas TV commercial
ad which can be now watched on YouTube as well.
https://youtu.be/RbCuMRf7esM

 Celebrities
Celebrities are frequently engaged with promotional
strategies of brands, for example, TV or print adverts to
publicize specific or general products. For example, when
celebs share the brand’s preferred items or garments it
often attracts the consumers.
As per the latest Hollywood celebrity, Beyoncé Knowles
signed an agreement with Adidas to relaunch Ivy Park
and will become a creative partner of Adidas by
developing new footwear and clothes for the brand.
[ CITATION bus19 \l 1033 ]

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Also, Indian celebrity Ranveer Singh is the brand

ambassador of Adidas Originals and he also launched the
Prophere, a pair of shoes for sneakers who want to wear
style on their feet in 2018 and launched Adidas home kit
for Arsenal club in 2019. [ CITATION exc19 \l 1033 ]

 Athletes
In September 2018 Hima das had signed an arrangement
with Adidas. The organization said in an explanation that
Hima Das will currently be outfitted with the best
contributions from Adidas for her dashing and preparing
needs. [ CITATION Hem19 \l 1033 ]

 Promo codes

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4. Shipping promotion
 Delivery of products
Delivery of Adidas products are free for US domestic
orders and you can get the product on the same day if the
order is placed before 1:00 p.m. EST or else it will be
shipped the next business day.
In India, cash on delivery of Adidas is Rs. 50 per order as
Adidas have to pay shipping partners additional fees in
order to process COD transactions.

6. Digital marketing-YouTube
#playfortheocean
Adidas can come with the strategy ‘#playfortheocean’ for its YouTube where it
can promote its sustainable shoes made out of ocean waste.
In this strategy, Adidas can make and upload a video representing athletes such
as Rohit Sharma, Hima Das, Aaron Rodgers, Kendall wright so on and celebs
such as Beyoncé, Ranveer, etc wearing adidas sustainable shoes while playing
the game and showing one step towards sustainability.
In the video the players would be speaking out the dialogue ‘I play for the
ocean’ to create an impact on the Adidas brand and it’s ethical and sustainable
move towards the environment.

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8. PRISM of Adidas

Physique

Self-
Personality
image

PRISM OF
ADIDAS

Reflection Culture

Relationship

Chart 4

8.1 Physique: (sports and fitness)

Physique refers to the physical characteristics of a brand. Here, Adidas’s
physical appearance comes as ‘sports and fitness’ which means that it’s
a brand for athletes and people who are fitness conscious. It helps
consumers to identify the brand. It shows the main purpose of ‘Adidas’
that what is its products, what it produce and what the product carries
value in the eyes of the consumers. ‘Sports and fitness’ carries all the
physical qualities and tangible added values of ‘Adidas’.
8.2 Personality: (Traditional and collective)
In personalities we assume the character of a brand if it would be a
human. The personality of Adidas is ‘Traditional and collective’. In this
Adidas shows communication to consumers as traditional brand, the
most old and strong brand for its consumers providing the best service
and high quality products since 1924. It is collective as it targets only
collective set of people as well as it manufactures a collective set of
products also according to needs and want of its consumers. As we
mentioned above ‘Athletes’ by demonstrating personifies traits such as
being collective or specific and traditional for its consumers.
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8.3 Culture: (European)

According to Kapferer, “Culture is a set of values that feed into or set as
foundation for the brand”. Culture can also come from the brand’s
country of origin, that’s how Adidas has ‘European’ in its culture
because the origin of Adidas is in Europe. Adidas was found in
Herzogenaurach, Germany by Adolf Dassler.

8.4 Relationship: (Quality)

As the term itself says ‘Relationship’ it is about the relationship between
the brand and its consumer. It includes both abstract aspects and tangible
aspects. Adidas maintains high quality relation with its consumers by
providing a high quality products to the consumers according to their
preference. And maintains the quality of products and supply on time.
This relationship shows how the Adidas reflects into consumer’s life and
shows how it is providing services to them.
8.5 Reflection: (A dedicated team player, sportsmanship, strong
work ethic)
Reflection refers to how a brand portrays its target audience. So
‘Adidas’ perceived, A good dedicated team player, sportsmanship and
strong work ethic. As its target market, this is a set of stereotypical
belief which Adidas sees in its consumers, and you can often see this in
their advertisements.
8.6 Self-image: (powerful competitor)
Self-image is the customer’s own internal mirror, that how the consumer
of the Adidas perceive themselves. So the consumers who use Adidas
products relates themselves as ‘more to competing than to winning’ by
associating themselves with Adidas, they feel like a better or best
version of themselves to competition in any sport or event.

9. Market Channel
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Marketing channel are the channels which company use to transfer the
good from manufacturing place to consumers. It is basically what
intermediaries they need to transfer the ownership of the goods to
consumers. There are different kinds of marketing channels which
companies use. For example- Indirect, direct channel, agents, whole sale
etc.
As we all know Adidas is a very collective brand, and is not into much
market channels. Till now it’s into one channel only and that’s ‘Retail
channel’.
In retail channel Adidas has its own retail stores globally, they have
established a huge wide global market. Adidas has 1342 no. of retail
outlets all over the world. In the retail outlets focus is on selling directly
to the consumers. There retail outlets sells the Adidas products on the
behalf of the Adidas to its consumers. Which makes it convenient for
Adidas to reach its target market consumers by creating one retail outlet
in any specific area where large no. of consumers can buy its products.
Adidas also has its online shopping website from which consumers can
buy Adidas products as well as other shopping websites like amazon and
myntra who are selling Adidas products. The retailers can sell the
products online or in stores according to their marketing strategy. The
emphasis is on the specific location but on selling directly to the
consumers. For retail outlets they have to take franchisee from the
Adidas which includes a lot of legal formalities.

10. Market coverage strategy

Market coverage strategy is the starting of any marketing plan. It is the first
step of market plan and precedes everything else. In market coverage
strategy it depends on the company on which strategy it should focus on.
Market coverage is the assessment of the marketplace and subsequent
determination of how much of the marketplace the company should cover
with their advertisement for a particular product or service. By focusing on
the factors like the buyer’s nature, economy etc. to understand the product’s
relationship to each market. This understanding helps them to formulate an
effective market coverage strategy.

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Undifferentiated Differentiated Concentrated

Ch
art 5

There are three types of market coverage strategy-

1. Undifferentiated market strategy
2. Differentiated market strategy
3. Concentrated market strategy
From above three market strategies the Adidas follows ‘Differentiated
marketing strategy’
Differentiated marketing strategy is when company or brand creates
products for more than one particual market segment or target groups.
The brand or company can apply this strategy:
By modifying the product
By offering different level of service.
By making some changes in the same product but according to different
segments or target groups.
After evaluating different segments, Adidas adopts differentiated market
coverage strategy.
Adidas has three different types of shoes for its consumers which has
more sub brands under them. The main three are ‘Performance,
Originals, and Style’. Adidas has three more sub brands under it and
they are available everywhere around the world. Where originals is for
people who are into street style wear and fashion. ‘Style’ is a more
fashionable product and target’s forward thinking fashion consumers.
NEO targets the (12-18) years old teenagers and was specifically made
for teenagers.
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11. Research Process

11.1 Problem-
Adidas stores are facing huge problems in Kids wear range. The stock
for kids wear are kept as it is in stores, there is no or very less demand
for kids wear in retail outlets. Hence, the sales are very less
comparatively other Adidas products.
11.2 Decrease in customer loyalty-
Consumers of Adidas are not even aware of Adidas Kids wear range.
Lack of promotions, advertisements, campaigns, as such there are no
particular promotion strategies for Adidas kids wear which is affecting it
badly in terms of sales and customer loyalty.
11.3 Problems facing by retailers-
As we mentioned above, there is no or very less demand of Adidas kids
wear in consumers because of this the sales of Adidas kids wear is very
less in retail outlets. The retailer has to manage the stock and the have to
give report to their heads that why there is no sale of kids wear as well
as they have to manage the stock also, which has become a headache for
them. The kids wear products are also consuming the place in their retail
outlets, sometimes it causes trouble in visual merchandising because
they cannot decide where to keep old stock of kids wear.
11.4 Survey-
We did a small survey to understand the perception of consumers
regarding Adidas kids wear. In this we asked few basic questions related
to Adidas kids wear. Following are the questions and pie charts. It is a
quantitative research based on primary data which we collected while
interviewing consumers. We have also mentioned our findings which we
understood during this research.

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1. Are you aware of Adidas’s Kids wear range?

Awareness

Yes
24%

No
76%

Yes No

In the above question we asked consumers whether they are aware of Adidas
has a kids wear range also, 76% consumers said they are not aware of this.
Which is quite disappointing, as everyone was aware about Adidas fully and
they were excited while telling about the brand but during kids wear most of
them were confused or absolutely blank. From the response which we got from
consumers shows that the Adidas has a majorly lack of instant recall value
which is a identity of a good brand.
2. Do you think that Adidas’s kids wear range has a reasonable set of prices?

Reasonable prices

32%

68%

Yes No

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In above question 68% consumers think that the prices of Adidas kids wear is
not reasonable according to kids wear. They don’t want to spend us such a huge
amount for their kids, as kids are growing and their size are changing in a very
short period of time. So buying a footwear of rs. 3000-5000 just for few months
is not a wise decision according to them.

3. Do you think that Adidas has enough range and products in kids wear?

Products in kidswear

37%

63%

Yes No

Consumers feel that Adidas has a very limited products for kids wear
comparatively to teenagers or adults. They think that Adidas can come up with
more varieties or innovation in their products, as they have a huge market
scope.

4. Which brand do you prefer to shop for your kid’s shoes?

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Brand preference
25%

40%

15% 20%

liberty shoes Nike Adidas Bata

When we asked them that which is their preference while shopping for their
kids 25% consumers said liberty shoes, 40% Bata, 20% Nike, and only 15%
said Adidas. Which is again quite disappointing when we asked them the
reason for not choosing Adidas they said that set of prices according to kids is
quite high as well as varieties and style which they get in other brands are more
than Adidas. This question was particularly asked to know what really
motivates them or what are factors which affects their buying decision to
choose one brand for their kids.
11.5 Conclusion
According to the research we have felt that Adidas really need to focus on its
kids wear market. There is a lot of scope as consumers are well aware of the
brand but when it comes to kids wear they are clueless. Strong promotion,
campaigns and advertising can help the Adidas to create a good rank in kids
wear market also. Also for the kids wear they should prepare a different color
schemes which should be attractive enough to the eyes. As well as Adidas
should start venturing into marketing execution campaigns for kids wear
extensively, and they are constantly ignoring the kids wear. Adidas should focus
more on what are preferences of consumers of kids wear and should make
changes according to it, instead of product developments and other activities.

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12. Referencing
adamkasi, 2017. porteranalysis.com. [Online]
Available at: https://www.porteranalysis.com/porters-five-forces-model-
of-adidas/
[Accessed 20 September 2019].
Anonymous, 2016. adidas-group.com. [Online]
Available at: https://www.adidas-
group.com/media/filer_public/c1/07/c10700a9-8a32-41fd-af9e-
01b3332bc928/lb_2016_gb_en.pdf
[Accessed 19 September 2019].
Anonymous, 2018. Heart of codes. [Online]
Available at: http://heartofcodes.com/positioning-of-adidas/
[Accessed 20 September 2019].
Bhasin, H., 2018. marketing91.com. [Online]
Available at: https://www.marketing91.com/marketing-mix-adidas/
[Accessed 20 September 2019].
Boom-Al-Habibi, 2016. academia.edu. [Online]
Available at:
https://www.academia.edu/23874596/Term_Paper_on_Marketing_Mana
gement_of_Adidas
[Accessed 18 September 2019].
Industries, A., 2011. blogspot.com. [Online]
Available at: http://adidasindustries.blogspot.com/2011/10/ch10-
product-concept.html
[Accessed 20 September 2019].
Liedtke, E., 2019. metro.co.uk. [Online]
Available at: https://metro.co.uk/2019/04/22/adidas-launch-
environmentally-friendly-100-recyclable-running-shoes-9283441/
[Accessed 20 September 2019].

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Marketing concepts in practise (2012) Taru Grönholm.

Whales, J. D., 2019. wikipedia.org. [Online]
Available at: https://en.wikipedia.org/wiki/Adidas#Marketing_In_India
[Accessed 20 September 2019].
exchange4media, 2019. exchange4media. [Online]
Available at: https://www.exchange4media.com/marketing-
news/ranveer-singh-launches-adidas-home-kit-201920-for-arsenal-club-
97819.html
[Accessed 11 October 2019].
businessjournal, 2019. The business journal. [Online]
Available at: https://www.bizjournals.com/bizwomen/news/latest-
news/2019/04/beyonc-signs-on-with-adidas-to-expand-activewear.html?
page=all
[Accessed 11 October 2019].
Singh, H., 2019. Jagranjosh. [Online]
Available at: https://www.jagranjosh.com/general-knowledge/hima-das-
records-and-biography-1563785998-1
[Accessed 11 October 2019].

13. Figure referencing

The shoe that started it all (Figure 1) 2011. Retrieved September 20,
2019 http://adidasindustries.blogspot.com/2011/10/ch10-product-concept.html

Eco friendly shoes made of ocean plastic (Figure 2) 2018. Retrieved

September 20, 2019 https://interestingengineering.com/adidas-sold-1-million-eco-
friendly-shoes-made-of-ocean-plastic-in-2017

Adidas manufacturing (Figure 3) 2018. Retrieved September 20, 2019

https://www.dezeen.com/2018/02/10/alastair-philip-wiper-photographs-behind-scenes-
adidas-factory-headquarters/

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Adidas high technology running shoe (figure 4) 2014. Retrieved

September 20, 2019 http://techassimilate.com/2014/06/smart-shoes-will-stamp-all-
over-smartwatch-success-thinks-taiwans-compal-electronics/

Adidas sustainability goal 2020 (figure 5) 2017. Retrieved September

20, 2019. http://adidasindustries.blogspot.com/2011/09/ethics-and-social-
responsibility.html

Adidas product portfolio (figure 6) 2013. Retrieved September 20, 2019.

http://keishelleeadidas.weebly.com/blog-posts/adidas-product-portfolio

Core prices of Adidas (figure 7) 2014. Retrieved September 20, 2019.

https://edited.com/blog/2014/08/crunch-time-for-adidas/adidas-core-pricing-variation-
editd/

Adidas outlet (figure 8) 2019. Retrieved from September 20, 2019

https://lulumallfujairah.com/stores/adidas-factory-outlet/

End of season sale (figure 9) 2017. Retrieved from September 20, 2019
https://www.supersports.co.th/store/adidas-end-of-season-jan-2017/

Adidas vs Nike vs Under Armour (figure 10) 2019. Retrieved September

20, 2019 https://footwearnews.com/2019/business/features/adidas-nike-under-armour-
sales-competition-us-north-america-1202777918/

SWOT Analysis (figure 11) 2019. Retrieved September 20, 2019

https://www.gasmandesign.com/minneapolis-swot-for-web/

Calling All Creators (figure 12). Retrieved September 20, 2019

https://www.youtube.com/watch?v=biErV3cVEaE

BCG Matrix/ Boston Matrix (figure 10). Retrieved October 9, 2019

https://expertprogrammanagement.com/2011/04/bcg-matrix-boston-matrix/

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13. Reflection
Name: Aayushi .J. Bagrecha

The fashion marketing and promotion overall project including the mid-
term and the end term of understanding the brand Adidas benefitted me
from a variety of new things right from studying and examining its
marketing 4Ps to gathering the deeper understanding of its promotion
strategies. I was able to relate the theories explained by the course faculty
Anuroudh Agnihotri on almost every topic covered in the report.

The hurdle which I personally faced during the making of the report was
firstly in the marketing concepts as Adidas is not following all the concepts
so it became little tough to gather information from the primary as well as
secondary data. Secondly, in the perceptual mapping, taking out the price
and volume of Adidas’s competitors was very time consuming as I
individually visited the USA website of Adidas and its competitors like
Nike, Puma and all and found out the high and low prices of women shoes
along with the volume of the same. Lastly, the market research process was
bit doubtful and way too much lengthy to come up with each step in a
proper and timely manner.

The store manager Nitin Ganojia helped in collecting the primary data by
answering the questions of the marketing topics and getting a clear
understanding of the brand. Moreover, there are few points and sub points
in the subject fashion marketing and promotion which Adidas is not
following so as per my understanding and knowledge I applied ideas that
Adidas can come up with mostly in the promotion strategies to enhance its
market growth and brand image in the future.

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