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Adidas India: Expansion & Strategy

The company has been in business for 5 years. It has experienced growth as the Adidas brand won awards for sustainability. The company's mission is to be the global leader in sports and lifestyle brands through strong products and competitive positioning. It plans to expand in India by opening 1000 stores by 2020 and targeting various demographics, including urban youth. The store carries specialty brands like Adidas, Reebok, and private labels. It provides training to salespeople and pays them salaries with incentives. The store is located on a busy road in Kottayam for good access and visibility.

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Tijo Thomas
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Topics covered

  • Mission statement,
  • Pricing strategy,
  • Brand positioning,
  • Employee training,
  • Consumer preferences,
  • Sustainability awards,
  • Consumer demographics,
  • Category life cycle,
  • Brand partnerships,
  • Customer segmentation
0% found this document useful (0 votes)
128 views6 pages

Adidas India: Expansion & Strategy

The company has been in business for 5 years. It has experienced growth as the Adidas brand won awards for sustainability. The company's mission is to be the global leader in sports and lifestyle brands through strong products and competitive positioning. It plans to expand in India by opening 1000 stores by 2020 and targeting various demographics, including urban youth. The store carries specialty brands like Adidas, Reebok, and private labels. It provides training to salespeople and pays them salaries with incentives. The store is located on a busy road in Kottayam for good access and visibility.

Uploaded by

Tijo Thomas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Topics covered

  • Mission statement,
  • Pricing strategy,
  • Brand positioning,
  • Employee training,
  • Consumer preferences,
  • Sustainability awards,
  • Consumer demographics,
  • Category life cycle,
  • Brand partnerships,
  • Customer segmentation

History of the Company:

1. Who did you interview?

Store Manager: Stalin Varghese

2. How long have they been in business?

5 years

3. How has their business changed over the years?

The business over changed when Bata Adidas won “Global100 most sustainable

corporation in the world in 2014 adidas again become 8th in the world it is the most

trusted footwear brands

4. What is their mission statement?

Mission Statement

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 Statement

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.
Values

Performance
Sport is the foundation for all we do and executional excellence is a core value of our
Group.
Passion
Passion is at the heart of our company. We are continuously moving forward,
innovating, and improving.
Integrity
We are honest, open, ethical, and fair. People trust us to adhere to our word.
Diversity
We know it takes people with different ideas, strengths, interests, and cultural
backgrounds to make our company succeed. We encourage healthy debate and
differences of opinion.

1. Do they plan to expand, penetrate, diversify, or change their retail format in the

near future?

Sportwear major Adidas India after delivering strong results in the third quarter ended

December 2018 is eyeing double-digit growth going forward on the back of its massive

expansion planned next fiscal. Adidas is planning massive expansion during the current

financial year and their plan is to establish 1000 stores in india by 2020

B. Retail Strategy

1. Who is their Target Market?

 Define their customer according to demographics (age, gender, income level, education

etc.)

Age: Involves all age group.they recently launched new shoes for kid sport entusiasts

Gender: Adidas manufactures men and women's shoes, Rebok is their brand reebok

has both women and men segment,they even have a brand called stella maccartney

especially for women


Income level: Adidas have premium brand it concentrate on brand they target premium

customers,who are enthusiastic about sports and the brand,it open for upper middle

class customers

Occupation: The broad elements of the strategy are to target the brand to urban youth

with their brand proposition from ‘competition to lifestyle’ ,they focus on working

professionals who will do sports in their leisure time.

Location; it would target principal consumption centres, namely metros and build

significant stand-alone exclusive store presence in significant locations.

Family Life Cycle: person who married with kids the men will chose stan smith as

their sneakers,while for kids they offer reebok kids model

Performance-oriented footwear, apparel and hardware products will always remain the

lifeblood of adidas.

Broader Distribution – Adidas follows the strategy of closely monitoring and

cooperating with the retailers, so that they can significantly improve the in-store

experience of the product. Retail partnerships is also helping the firm to improve

effectiveness in the market which is dominated by price and lack of differentiation.in

Kottayam store they partnered with ikea for brand and logo

Social Class This includes Upper class, middle class, lower class etc. Adidas segmented

their market in this way as well. Like for men they target upper middle class for men

they have sneakers in the name of messi,also stan smith for more brand enthusiasts,the

ultraboost segments which is famous in uk are now became wide popular here for

special jogging peoples


 Trade Area – Adidas is primary trade area such as, The Company is evaluating new

locations and has currently identified 100 potential trade areas covering both malls, high

street areas. They would also like to open more stores in tier II and tier III cities through

the franchisee route. Ultraboost has shown good traction in recent times.

2. Merchandise Assortment:

 What are the major brands they carry?

Reebok- Parent Company: Adidas

Ultraboost- Parent Company: Adidas

 Do they have private brands?

Stan smith,Stella maccartney,messi,Gazile

 Where does this retailer's merchandise fit on the category life cycle?

 Why do you think they chose this stage of the life cycle?

 Does this retailer carry convenience goods, shopping goods or specialty?

Adidas Carry out Specialty store, by finding strategic locations, medium sized layout and

merchandise on all shoe products,And merchandise mainly focusing on Adidas originals

3. Human Resources:

 How does this store prepare and train their sales people?

 Selected Sales people under go 2.5 months training period by the HR department and

every month they undergo training sections by store managers . Develop basic level
modules on communication skills,soft skills,sales and deliver internally. Facilitate

learning through a variety of delivery methods including classroom instruction, off site

training, on-the-job coaching

Store managers undergo 6 months training period.

 Are they paid on commission, salary, or hourly wage?

Sales people are paid salary per month

Sales person: ₹ 8000+bonus

Store Manager: ₹ 17000+incentives

 Are the sales people allowed to cross sell?

Yes, Adidas usually don’t encourages cross selling in their store,but if u buy a shoe

they will suggest the customer a matching branded socks

 Do they outsource any activities in their business?

They outsource only the supply chain like distributors for their products and labour for

unloading and stock clearing purposes.

4. Store Location:

 Where is this retail store located?

Adidas store,Shastri road opposite public library Kottayam pin.686001

 Why do you think they chose this location?


Shastri Road is near kotayam town . People come and go very frequently because it is

the way to kottaym town also new overbridge is building there,bit has bus stops which

have buses all time this will attract the customers.

 Is this site accessible for the customer?

Available facilities are Railway station, main road, bus stops etc.

 What type of lease do they have?

They take this building for 10 years contract

5. Pricing:

Common questions

Powered by AI

Adidas segments its market by demographics such as age, gender, income level, occupation, and family life cycle. It targets all age groups, with special products for kids, offers shoes for both men and women including specific brands like Stella McCartney for women, and appeals to upper middle-class customers. The company focuses on urban youth and professionals, aiming at those who engage in sports during leisure time. Adidas also tailors marketing strategies to social classes and trade areas by evaluating potential locations for expansion .

Adidas enhances market effectiveness through strategic retail partnerships by collaborating closely with retailers to improve in-store experiences, which is critical in a market dominated by price competition and lack of differentiation. Such partnerships help Adidas by attracting consumers seeking value-added services and experiences beyond just the products themselves .

Adidas' commitment to sustainability is reflected in being named one of the Global100 most sustainable corporations, emphasizing its reputation and brand trust. This sustainability recognition influences its strategy to maintain competitive leadership in the sporting goods sector, attract environmentally conscious consumers, and shape an eco-friendly brand image that bolsters its market position and customer loyalty .

Adidas has focused on massive expansion, aiming to establish 1,000 stores in India by 2020, leveraging its reputation as one of the most trusted footwear brands after being recognized among the Global100 most sustainable corporations in 2014. The company targets premium customers including urban youth, working professionals, and families, with a strategy to penetrate principal consumption centers through significant stand-alone stores and partnerships with retailers for an improved in-store experience .

Adidas emphasizes staff training and development by subjecting selected salespeople to a 2.5-month onboarding training focused on communication, soft skills, and sales, supplemented with monthly training sessions. Store managers undergo a 6-month training program. The emphasis on continuous learning includes a variety of delivery methods such as classroom instruction and on-the-job coaching. Staff compensation includes a salary with potential bonuses or incentives .

Adidas considers factors such as accessibility, proximity to key urban areas, and customer traffic flow when selecting store locations. For instance, the store on Shastri Road, Kottayam, is advantageous due to its frequent bus services, proximity to the town, and accessibility including a nearby railway station. These considerations are crucial for maximizing customer footfall and enhancing convenience, ultimately driving sales .

Challenges for Adidas' expansion in India could include logistical complexities, cultural diversity in consumer preferences, and intense competition in the retail sector. Mitigation strategies might involve adapting product lines to local tastes, expanding partnerships with local retailers for better market penetration, and leveraging technology to optimize supply chains and store operations to ensure efficient scalability .

Adidas tailors its product offerings by considering the family life cycle, serving married individuals with children through products like Stan Smith sneakers for men and Reebok models for kids. This approach accounts for family-oriented purchasing behaviors and caters to the needs of entire household units, reinforcing brand loyalty across different family stages .

Adidas' core values include performance, passion, integrity, and diversity. These values align with their mission to be the global leader in sporting goods by building brands with a passion for sports, continuously improving their competitive position. Performance is emphasized as they regard sport as foundational, while passion drives innovation and improvement, integrity builds trust, and diversity is seen as essential for success .

Adidas targets urban youth and working professionals because these demographics reflect a lifestyle that aligns with the brand's identity as a sporting and lifestyle company. These groups are likely to value brands that offer performance and style, making them attractive for a company focusing on innovation and active living, thus ensuring a robust customer base for its products .

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