Adidas Future Plan Essay

843 Words Sep 17th, 2010 4 Pages
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ADIDAS INDIA MARKETING PRIVATE LIMITED

Background adidas was founded by Adi Dassler in 1948. It remained a family firm till 1988, when it was transformed into a corporation.The adidas Group is the world’s second-largest sporting goods company and had net sales of US$ 7.74 billion in 2004. adidas’ product range includes shoes, apparel and accessories for basketball, golf, soccer, fitness and training.The company has over 14,000 employees, 110 subsidiaries and sources from 840 factories across the world. 60 per cent of the company’s suppliers are based in Asia. In 1997, adidas acquired the Salomon group and the name got changed to Adidas-Salomon AG.The name is expected to change to “Adidas AG” in May 2006 following the acquisition
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In most countries, adidas is significantly bigger than Reebok. However in India, Reebok has a larger share of the market.

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Keys to success adidas’ success factors include strength in supply chain management, cutting edge technology, a strong retail network and effective advertising. India provides advantages in terms of lower labour costs and a highly-skilled work force. However, attracting and retaining the right people is a challenge in a highly competitive job market. Retailers are willing to invest money in setting up showrooms but generally their understanding of retailing is poor. Focused approach to the market and support from parent company adidas entered India with aggressive marketing campaigns. It brought in Indian sports icons Sachin Tendulkar and Leander Paes to endorse the brand. The parent company has been very supportive. The top management had the belief and commitment that it would weather the initial loss-making years, before India could gain critical mass and become a profitable operation. Association with sports events helped in building awareness adidas has been promoting sports such as tennis and cricket at various levels.The company aggressively promotes tennis in India as a part of the firm’s strategy to drive growth by identifying and developing key performance sports in India. It promotes tennis at three levels - the recognition of young talent through scholarships, sponsorship and

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