Jagdish Saran Hindu P.G.

College
Amroha
Topic Adidas

FACULTY OF MANAGEMENT
Department of Business
Administration
M.J.P. Rohilkhand University,
Submitted by
Submitted to
Bareilly
Saif Khan
BBA Faculty
BBA-2nd Sem.

Roll No.
7178050036

ACKNOWLEDGEMENT
It is my pleasure to acknowledge the assistance of a number of people without
whose help this project report could not be completed.
I express my profound sense of gratitude to my project guide BBA Faculty for
giving encouragement in taking up the project.
I am also thankful to all my faculties for motivating and librarian for making
available to me the important book in the library and the necessary guidance for
this project.
At last but not the least, I express my thanks to my parents, who provided me
support throughout this project. They have been a perennial source of
inspiration for me.
I am too small so thank GOD for anything & everything.

Saif Khan
BBA-2nd Semester
Roll No. : 7178050036

STUDENT DECLARATION
I Saif Khan hereby declare that this Project Report entitled Adidas,
submitted in the partial fulfillment of the requirement of Bachelor of Business
Administration (BBA) from Jagdish Saran Hindu PG College, Amroha. It is
based on primary & secondary data found by me in various departments, books,
magazines and websites & Collected by me under the guidance of my Project
guide BBA Faculty.

Saif Khan
BBA-2nd Semester
Roll No. 7178050036

Contents

1.
2.
3.
4.
5.
6.
7.

Title

Page No.

Acknowledgement
Student declaration
Company profile
Findings of study
Conclusion
Suggestion
Bibliography

2
3
5-22
23
24
25
26

Company Information Adidas

4

Adidas AG is a German multinational corporation that designs and

manufactures sports shoes, clothing and accessories. The company is
based

in Herzogenaurach, Bavaria, Germany.

It

is

the holding

company for the Adidas Group, which consists of the Reebok sportswear
company,TaylorMade-Adidas golf company (including Ashworth), 9.1%
of FC Bayern Munich and Runtastic, a former-Austrian fitness company.
Besides sports footwear, Adidas also produces other products such as
bags, shirts, watches, eyewear and other sports and clothing-related
goods. Adidas is the largest sportswearmanufacturer in Europe and the
second biggest in the world, after Nike (since 2012).
Adidas was founded on 18 August 1949 by Adolf Dassler, following a
family feud at the Gebrder Dassler Schuhfabrik company between him
and his older brotherRudolf. Rudolf had earlier established Puma, which
quickly became the business rival of Adidas. Both the Adidas and Puma
companies still remain based inHerzogenaurach, Germany to this day.
The company's clothing and shoe designs typically feature three parallel
bars, and the same motif is incorporated into Adidas's current official
logo. The brand name is appropriately uncapitalized, with a lower case
"a." The company revenue for 2012 was listed at 14.88 billion.

History

Early days
Christoph Von Wilhelm Dassler was a worker in a shoe factory, while his
wife

Pauline

ran

small

laundry

in

the Bavarian town

of Herzogenaurach, 20 km (12.4 mi) from the city of Nuremberg. After

leaving school, their son, Rudolf "Rudi" Dassler, joined his father at the
shoe factory. When he returned from fighting in World War I, Rudolf
received a management position at a porcelain factory, and later in a
leather wholesale business in Nuremberg.
Adolf "Adi" Dassler started to produce his own sports shoes in his
mother's wash kitchen in Herzogenaurach, Bavaria after his return from
World

War

I.

In

July

1924,

his

brother

Rudolf

returned

to

Herzogenaurach to join his younger brother's business, which

became Gebrder Dassler Schuhfabrik (Dassler Brothers Shoe Factory)
and prospered. The pair started the venture in their mother's
laundry, but, at the time, electricity supplies in the town were unreliable,

and the brothers sometimes had to use pedal power from a stationary
bicycle to run their equipment.
By the 1936 Summer Olympics, Adi Dassler drove from Bavaria on one
of the world's first motorways to the Olympic village with a suitcase full of
spikes and persuaded U.S. sprinter Jesse Owens to use them, the
first sponsorship for an African American. Following Owens' haul of four
gold medals, his success cemented the good reputation of Dassler
shoes among the world's most famous sportsmen. Letters from around
the world landed on the brothers' desks, and the trainers of other
national teams were all interested in their shoes. Business boomed and
the Dasslers were selling 200,000 pairs of shoes each year before World
War II.

Products

10

11

Association Football

One of the main focuses of Adidas has always been football kit and the
associated equipment. Adidas remains a major company in the supply of
team

kits

for

including Bayern

internationalassociation

football teams

Munich, Manchester
12

and

clubs,

United, Real

Madrid, Valencia, Benfica, Chelsea and A.C.

Milan,

with Manchester

United andJuventus both recently starting in the 2015-16 season.

Adidas makes referee kits that are used in international competition and
by many countries and leagues in the world. The company has been an
innovator in the area of footwear for the sport, with notable examples
including the 1979 release of the Copa Mundial moulded boot used for
matches on firm dry pitches. It holds the accolade of the best selling
boot of all time. The soft-ground equivalent was named World Cup and it
too remains on the market, timeless and iconic.

FIFA, the world

FIFA, the world governing body of football, commissioned specially

designed footballs for use in its own World Cup tournaments to favour
more attacking play. The balls supplied for the 2006 World Cup,
the Teamgeist, were particular noteworthy for their ability to travel further
than previous types when struck, leading to longer range goals.
13

Goalkeepers were generally believed to be less comfortable with the

design of the ball, claiming it was prone to move significantly and
unpredictably in flight.
Adidas also introduced another new ball for the 2010 World Cup.
The Jabulani ball

was

designed

and

developed

byLoughborough

University in conjunction with Bayern Munich. The Adidas Brazuca was

the match ball of the 2014 World Cup.
Adidas has numerous major kit deals with clubs worldwide, Adidas has
endorsed many players, including Lionel Messi, Zinedine Zidane, David
Beckham, Arjen

Robben, Thomas

Bale, Kak, Robin

Costa, James

van

Muller,Luis

Persie, Karim

Rodrguez, ngel

Di

Surez, Xavi, Gareth

Benzema, Mesut
Mara, Theo

zil, Diego

Walcott, Steven

Gerrard, Claudio Bravo and Marcelo Vieira.

Adidas is one of the official sponsors of the UEFA Champions League,
and the Adidas Finale is the competition's official match ball. As well as
the aforementionedAdidas Predator boot, Adidas also manufacture
the adiPure range of football boots. Adidas also provides clothing and
equipment for all teams in Major League Soccer.
In April 2013, Adidas and Opta Sports announced the introduction of a
new football player type - the Engine. The Engine' is the archetypical
box-to-box footballer who covers every blade of grass, seeks goal
scoring chances, tracks down his opponent and displays relentless
energy from the first minute to the final whistle.
In July 2014, Adidas and Manchester United agreed a ten-year kit deal,
starting with the 2015-16 Premier League season. This kit deal has a
guaranteed minimum value of 750 million ($1.29 billion), which made it

14

the most valuable kit deal in sports history, and replaced rival Nike as the
club's global equipment partner.

Tennis

Adidas has been involved with tennis equipment since the mid 1960s
and has historically sponsored many top tennis players, beginning with
two of the most dominant male tennis players at the start of the
15

professional era in the late 1960s, Stan Smith and Ilie Nastase. During
the 1980s and 1990s, not only were they exclusive apparel and footwear
sponsors

of

world

number

one

men's

tennis

players Ivan

Lendl and Stefan Edberg and ladies' world number one Steffi Graf but
each player had their own, exclusive graphic styles designed for their
use during play, which were in turn marketed to the general public. Ivan
Lendl even spent the vast majority of his dominant career playing with
several different models of Adidas tennis racquets, primarily using the
legendary Adidas GTX-Pro and then later the Adidas GTX Pro-T. The
company recently introduced a new line of tennis racquets. While the
Feather is made for the "regular player", and the Response for the "club
player", Adidas targets the "tournament player" with the 12.2 oz
Barricade tour model.

Golf
In 1998, Adidas Golf USA moved its business operations from Tualatin,
Oregon, to the Carlsbad, California headquarters of TaylorMade Golf,
acquired by Adidas-Salomon. Adidas Golf USA had thirty employees to
relocate. Carlsbad is also the headquarters of one of its primary
competitors, Callaway Golf Company.
In 1999, TaylorMade and AdidasGolf USA, were merged into a new
companycalled TaylorMade-Adidas Golfwith world headquarters in
Carlsbad. Mark King was named president of the company he had
begun his career with in 1981 as a sales representative after a short stint
as vice president of sales and marketing at Callaway Golf Ball Co. in
1998.

16

In November 2008, Ashworth (clothing) became a wholly owned

subsidiary of TaylorMade-Adidas Golf, complementary to the synthetic
performance fabrics of Adidas Golf.
Golf
Adidas Golf sells clothing, footwear, and accessories for men, women,
and youth. Men's equipment includes footwear, shirts, shorts, pants,
outerwear (wind suits), base layer and eyewear, Women's equipment
includes footwear, shirts, shorts, skirts, pants, outerwear, base layers,
and eyewear. Youth equipment includes both boys and girls footwear,
clothing, and eyewear.

Cricket

Adidas began manufacturing cricket footwear in the mid 1970s, with their
initial target market being Australia. Their shoes were a radical departure
from traditional leather cricket boots which had remained basically
unchanged for decades, being lighter and more flexible but also offering
less toe protection, so that it became not uncommon to see batsmen
who had been struck by the ball on the foot hopping around in pain.
17

Having continued to manufacture cricket footwear for many years, in

2006 the company finally entered the field of bat manufacture in 2008
and currently their bat range includes the Pellara, Incurza, Libro and MBlaster models.
In the Indian Premier League (IPL), Adidas sponsored the team Mumbai
Indians from

2008

to

2014

and Delhi

Daredevils from

2008

to

2013. They were the official sponsors of Pune Warriors India in 2011 and
2012, however the team was banned from IPL due to payment issues.
Currently, from 2015 Season of IPL, Adidas sponsors Royal Challengers
Bangalore.

Basketball
Adidas has been a longtime basketball shoe manufacturer and is one of
the leading basketball brands in the world. They are most famous for
their late 1960s iconic Superstar and Pro Model shoes, affectionately
known as "shelltoes" for their stylized hard rubber toe box. Fueled by,
among others, coaches such as UCLA's John Wooden, Adidas drew
about even with Converse in basketball by the mid 1970s before both
started to fall behind then-upstart Nike in the early 1980s. Subsequently
Adidas Superstar became very popular in the 1980s hip hop
streetwear scene alongside Adidas's stripe-sided polyester suits.

18

Adidas is also the current outfitter of all 30 franchises in the National

Basketball Association (replacing the Reebok brand after the merger)
and sponsors numerous players past and present like Kareem AbdulJabbar and Tracy McGrady, as well as Chauncey Billups, Derrick
Rose, Brandon Knight, Eric Gordon, Josh Smith, Damian Lillard, Andrew
Wiggins, Tim Duncan, Jeremy Lin, Iman Shumpert, John Wall. Adidas
endorsed Kobe Bryant with the Adidas Equipment KB8 as his first
signature shoe until July 2002. The company also endorsed Kevin
Garnett until he opted out of his contract in 2010. Gilbert Arenas was an
Adidas endorser until 2010. In August 2015, James Harden left Nike for
Adidas by signing a 13-year contract reportedly worth $200 million.

Rugby

Adidas makes rugby boots, balls and other rugby gear. They are the
current kit and ball supplier to the New Zealand All Blacks, Irish Munster
Rugby, the French National Team Les Bleus, the Italian national rugby
team and the South African Stormers and Western Province rugby union
19

teams among others. Adidas is also the New Zealand Rugby

Union clothing

sponsor

and

supplies

clothing

to

all Super

Rugby franchises, a selection of domestic teams and national referees.

Adidas are also the official match ball supplier to the Heineken Cup.
Adidas was the British and Irish Lions kit supplier from 1997 to 2013.
They are the jersey manufacturers of the Gold Coast Titans Rugby
League club in the Australasian National Rugby League. Dual rugby and
league international and former boxer Sonny Bill Williams is a global
ambassador for Adidas.

Gymnastics
From 2000 to 2012, Adidas has provided men's and women's
gymnastics wear for Team USA, through USA Gymnastics. USA
Gymnastics and Adidas sponsorship concluded at the end of 2012. In
2006, Adidas gymnastics leotards for women and Adidas men's
competition shirts, gymnastics pants and gymnastics shorts have been
available in the USA, with seasonal leotards offered for Spring, Summer,
Fall and Holidays. Adidas previous collaborated with GK Elite, since
Spring 2013, Adidas gymnastics products have been available worldwide
through

Elegant

Sports.

USA Olympic

20

team

members McKayla

Maroney, Jordyn

Wieber, Jake

Dalton and Danell

Leyva are

all

specifically

for

sponsored by Adidas gymnastics.

Skateboarding
Adidas

Skateboarding

skateboarding,

including

produces
the

shoes

redesign

made
of

previous

models

for

skateboarding. The brand also releases signature models designed by

team riders.
Baseball
Adidas has also provided baseball equipment and sponsors numerous
players of Major League Baseball and Nippon Professional Baseball in
Japan.
Adidas Baseball hardgoods are licensed to Dick's Sporting Goods and
manufacturing is directed by Dick's Sporting Goods.
From 1997 to 2008, Adidas sponsored New York Yankees.
In Japan, Adidas is the official apparel sponsor for the teams Yomiuri
Giants and Waseda University.

Field hockey
Adidas has provided hockey equipment and sponsors numerous players
of Germany, England, Netherlands, Australia, Spain and Belgium. They
also sponsor Reading Hockey Club, Beeston Hockey Club and East
Grinstead Hockey Club.

21

Accessories
Adidas also designs and makes slide-style sandals, watches, eyewear,
bags, baseball caps, and socks. As well, Adidas has a branded range of
male and femaledeodorants, perfumes, aftershave and lotions.
Adidas announced they will be launching a new $199 Fit Smart
wristband in mid-August 2014. The wristband will pair with Adidas's
miCoach app, which acts as a personal trainer.

Adissage

22

Adissage is also a uni-sex slide-style sandal. Available in black, navy,

light blue, black with pink, and other assorted colors, the sandal has the
trademarked three stripes on a velcro strap toward the front of the shoe.
On the side of the shoe, toward the heel on either side, the
manufacturers name appears, as well as on a round emblem in the
actual heel of the footbed. Like the Santiossage, there are tiny black
massage nubs throughout the foot-bed for the purpose of massaging
foot aches after sport, although popular as a casual sandal amongst
non-athletes as well.

Marketing
23

Adidas, like other sports brands, is believed to engender high consumer

brand loyalty. Brand loyalty towards Adidas, Nike, Inc., Puma AG and
several other sportswear brands was examined in a recent study. The
study found consumers did not exhibit unduly high loyalty towards such
brands.

FINDING
24

 The new stuff of the ADIDAS is attracting the consumers more

which might lead ADIDAS at the top spot in the pack in coming
financial year.
Celebrities also affect the sale of brand .ADIDAS shoes promoted
by David Beckham
ADIDAS has been major competitor for REEBOK.
Consumer reaction suggests that Adidas is the marker leader
among all its close counterparts in the sport shoes and apparel
segments.
Most of respondents prefer to purchase shoes from exclusive
showrooms.
Businessman, serviceman and professionals prefer to wear formal
shoes because of status and students like to wear only sports and
casual branded shoes.

SUGGESTIONS:

25

 Department stores are the prime sales and marketing channel for
branded shoes. In addition, store decorations and product displays
should be designed to create a strong first impression.
Seasonal promotion campaigns, like special discounts and
advertisements, could be employed. New lines of collections
should be introduced for festivals.
The prices of branded shoes must be reduced to increase sales.

Conclusion

26

Based on the group of companies that I have now analysed which ranges
from being very pure into sports and sports goods and then moving more and
more towards outdoor activities but still a part of sport
goods: Adidas, Nike, Puma,Asics, Amer Sports, Jarden
Corporation, Mizuno, Wolverine and Deckers Outdoor.
Then I would say that they are either fairly or overvalued by the market
today. None of the companies turned out to be undervalued by the market
unless we recalculate Deckers Outdoor based on their very nice growth the
last five years.. If one really wants to buy a sports shoe company due to the
future World Championship or due to the Olympics or due to whatever reason
then I would today find it very difficult to pick one and since I can not then I
also will not. Neither of them qualifies for me and therefore I will also not
invest. I am still waiting for that third or fourth wave.

Bibliography

27

Website
www.adidas.co.in
https://en.wikipedia.org
https://www.google.co.in
newspaper
Financial Express
Hindustan Times
The Times of India

28