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1. Executive Summary
This study takes a look in various kinds of Merchanding activities, market share of different sports shoes and various promotion schemes, which are followed in sports shoes industry. The three major player i.e., Reebok, Nike and Adidas dominates the sports shoes industry in India. India is one of the battle ground in the world. Where there is neck to neck compotation between the three. the companies claim to be in number one sports coating the data produced by two different marketing research companies.
In 1980, Adidas sneakers became popular amongst teenagers and young man. The adidas sneakers were popularized by the Run DMC song “My Adidas” and became a huge fashion trend. The topic affair the history of the company as presented by it's official website is incomplete, perhaps because it is indirectly linked to financial scandals.
Nike is the # 1 manufacturer and marketers of the athletic footwear and appeal. Almost out of the blue, company established itself as one of the world 's most familiar brand during 1980s and 1990s.
Trainees went out of the fashion economic slowdown and labor problem hit Asian performance. But te group has bowed back retaining it:s iron grip sporting apparels sector and still undisputed leader in sports oriented street wear.
Reebok is the world's third largest maker of sneakers, athletic shoes and sports appeal.
Goods are sold under the brand Reebok, Rockport and Greg Norman collection. Reebok is also the official outfitter of the NFL and has an exclusive deal to supply NDA jerseys beginning this season.
Reebok announced in July it will merger with German sporting apparel company adidas -Salomon in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2008 and will create the second largest sporting goods company behind Nike with $ 11billion in revenue.
Adidas will maintain it's corporate headquarter in Germany and it's North American headquarter in Portland. Reebok will continue to operate under it's name and will remain it's headquarter in canton MA.
In fiscal 2008, Reebok had net income of $192.4 million and sales $3.7billion.
2. Company Profile
Adidas is a German sports apparel manufacturer, part of the Adidas-Salomon Corporation. Adidas was named after its founder, Adolph (Adidas, who started producing shoes in the 1920s in Herzogenaurach near Nuremberg with the help of his fellow friend Cody. It registered as Adidas AG on 18 August 1949. The company's clothing and shoe designs typically include three parallel stripes of the same color, and the same motive is incorporated into Adidas' official logos.
COMPETITORS: Rudolf Dassler, Adie's brother, founded a rival company, PUMA the chief competitors of Adidas are Puma and Nike. In August 2005, the company announced that it had made a deal to acquire rival Reebok for $3.8 billion. The acquisition would increase its market share in North America and allow it to further compete with Nike. This will propel Adidas to the number two spot in the foot apparel market behind Nike. Adidas' trademark saying is ‘impossible is nothing'.
ENHANCEMENT: In the 1980s, Adidas sneakers became popular amongst teenagers and young men. The Adidas sneaker was popularized by the Run DMC song “My Adidas” and became a huge fashion trend.The Tapie affair the history of the company as presented by its official website is incomplete, perhaps because it is indirectly linked to financialscandals. After a period of serious trouble following the death of AdolfDassler's son Horst Dassler in 1987, the company was bought in 1990 byBernard Tapie, for 1.6 billion French francs ($320 million), which Tapieborrowed. Tapie was at the time a famous specialist of rescuing bankruptcompanies, a business on which he built his fortuneTapie decided to move production offshore to Asia. He also hired Madonnafor promotion.
In 1992, Tapie was unable to pay the interest from his loan. He mandated the Credit Lyonnais bank to sell Adidas, and the bank subsequently convertedthe outstanding debt owed into equity of the enterprise, which was unusual for then-current French banking practice. Apparently, the state-owned bank had tried to get Tapie out of dire financial straits as a personal favor to Tapie, reportedly because Tapie was a minister of Urban Affairs (ministre de la Ville) in the French government at the time.
In February 1993, Credit Lyonnais sold Adidas to Robert Louis-Dreyfus, afriend of Bernard Tapie (and cousin of Julia Louis-Dreyfus from the Seinfeld TV series), for a much higher amount of money than what Tapie owed,4.485 billion francs rather than 2.85 billion. Forgetting why the bankactually bought Adidas, Tapie later sued the bank, because he felt spoiled bythe indirect sale.Robert Louis-Dreyfus became the new CEO of the company. He is also thepresident of the Olympique de Marseille football team, to which Tapie isclosely linked.
Tapie went bankrupt himself in 1994. He was the object of several lawsuits,notably related to match fixing at the football club. He spent 6 months in LaSanté prison in Paris in 1997 after being sentenced to 18.In 2005, French courts awarded Tapie a 135 million euro compensation (about 886 million francs).
In 1997, Adidas AG acquired the Salomon Group, and its corporate namewas changed to Adidas-Salomon AG.
A HAWK EYE VIEW
In 1998, Adidas sued the NCAA over theirrules limiting the size and number of commercial logos on team uniforms and apparel. Adidas withdrew the suit, and the two groups established guidelines as to what three-stripe designs would be considered uses of the Adidas AG.
Type Public Founded 1949
Location Herzogenaurach, Germany
Key people Adolph Dassler, founder
Herbert Hainer, CEO
Robin Stalker, CFO
Andreas Gellner, Managing
Revenue $7.866 billion USD (2008)
INTRODUCTION: Reebok is the world's third-largest maker of sneakers, athletic shoes and sports apparel. Goods are sold under the brands. Reebok, Rockport and Greg Norman Collection. Reebok is also the official outfitter of the NFL and has an exclusive deal to supply NBA jerseys beginning this season. Reebok announced in July it will merge with German sporting apparel company adidas-Salomon in a deal valued at $3.8 billion. The merger is expected to be completed by the first half of 2006 and will create the second-largest sporting goods company behind Nike with $11 billion in revenues. Adidas will maintain its corporate headquarters in Germany and its North American headquarters in Portland, OR. Paul Fireman will remain as Chief Executive Officer of Reebok International Ltd. and will continue to lead the Reebok team. Reebok will continue to operate under its name and will retain its headquarters in Canton, MA. In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7 billion
BRIEF HISTORY: Reebok's origins go back to 1895 when Joseph William Foster made running shoes with spikes in them. He formed a company called J.W. Foster and Sons which made shoes for top runners. The family-owned business made the shoes for athletes in the 1924 Summer Olympics. In 1958, two of the founder's grandsons started a companion company that came to be known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok shoes at an international trade show. He negotiated for the North American distribution license and introduced three running shoes in the U.S. that year. At $60, they were the most expensive running shoes on the market. By 1981, Reebok's sales exceeded $1.5 million, but a dramatic move Swas planned for the next year. In 1982, Reebok introduced the first athletic shoe designed especially for women; a shoe for a hot new fitness exercise called aerobic dance. The shoe was called the Freestyle, and with it Reebok anticipated and encouraged three major trends that transformed the athletic footwear industry: the aerobic exercise movement, the influx of women into sports and exercise and the acceptance of well-designed athletic footwear by adults for street and casual wear Reebok went public in 1985.
Nike is the world's #1 manufacturer and marketer of athletic footwear and apparel. Almost out of the blue, the company established itself as one of the world's most familiar brands during the 1980s and 1990s. As familiar as a Coke bottle or Big Mac, the Nike “swoosh” logo came to symbolize not just sports culture, but street culture, as the appeal of the star players who endorsed the brand was carried onto city streets. The approach of the new century set Nike new problems. Trainers went (briefly) out of fashion, economic slowdown and labor problems hit Asian performance. But the group has bounced back, retaining its iron grip on the sporting apparel sector and still undisputed leader in sports oriented street wear.
The Ad brands Company Profile of Nike summarizes the company's history and current operations and also contains the following website links:
HISTORY OF NIKE:
NIKE, pronounced NI-KEY, is the winged goddess of victory according to Greek mythology. She sat at the side of Zeus, the ruler of the Olympic pantheon, in Olympus. A mystical presence, symbolizing victorious encounters, NIKE presided over history's earliest battlefields. A Greek would say, “When we go to battle and win, we say it is NIKE.” Synonymous with honored conquest, NIKE is the twentieth century footwear that lifts the world's greatest athletes to new levels of mastery and achievement. The NIKE ‘swoosh' embodies the spirit of the winged
Goddess who inspired the most courageous and chivalrous warriors at the dawn of civilization. (From Nike Consumer Affairs packet, 1996)
Nike Team Sports
Cole HaanS Nike Football
Nike Basketball Nike All Conditions Gear (ACG)
Nike Goddess Hurley International
Jordan Brand Nike Hockey
Nike Town Nike Golf
Bauer Blue Ribbon Sports
Nike Germany Nike Italy
Nike France Nike Spain
Nike (UK) Nike Japan
Nike Canada Nike Korea
Nike Hong Kong Nike Taiwan
Nike London (UK)
3. RESEARCH METHODOLOGY
Research methodology is one of the important aspects of any project. This gives us a clear-cut view of the method so used while gathering the information so needed for competition of the report.
“Marketing research is a systematic design; collection, analysis and reporting of data and finding relevant solution to a specific marketing situation or problem.”
Defining the problems and research objectives:
It is said “a problem well defined is half solved.” the step is to define the project under study and deciding the research objective.
1. Type of research: - Exploratory research is being conducted for this study.
2. Sampling design:
- Universe: - the study will be confined to lpu student only.
- Sample size: 50 customers
4. Sampling Technique: Sampling technique used for this research was convenience and random sampling for the selection of customers.
5. Population :
As the population of lpu student is very large, so we started our survey through Questionnaire who are using sports shoes.
6. Data collection: Â
a). Primary data
Primary data was collected through questionnaire. A variety of questions like open-ended questions, closed-ended questions, were used for this purpose. To facilitate answering, the questions were developed in simple words, to convey the real and full meaning. The questionnaire was also pre-tested to see whether the respondents would face any difficulty in understanding and answering the questions.
b). Secondary data
- These types of data available in Internet and other type of Medias.
- For this project, data was collected from the various journals.
Secondary sources used are:
Journal and journal of marketing.
4. Limitation of the Study
Many of the respondents were not willing to fill the questionnaire.Â· Some people were not willing to respond and few of them who responded were in hurry hence the active participation was lacking. Due to which I faced difficulties in collecting information's regarding our questionnaire.Â· Another problem which I face was that people were hesitating to give information about their views freely.
5. Data Analysis
- Adidas is the marketing leader according to research followed by Nike and reebok.
- 92% students are satisfied with the preferred brand
- 68% of the customer are agree that the brand image affect the pricing of sport shoes.
- 64% of the customer would prefer the same brand if the price increases.
- 64% customers give importance of the sports shoes to the comfort.
- 66% customer are looking for quality in their preferred brand after the durability.
- 60% customers are agree with that the advertisement play vital role in selection of brand shoes.
- 60% customer consider that the celebrity affect the purchase decision.
- 64% customer will go for another brand of the same brand quality if it will be offered them at the less price.
- 68% customer are agree that the weight is important factor choosing brand.
- 58% customers preferred the discount for the promotional tool.
- 42% customers said that friends influence them to purchase the sport shoe after that family.
- Company should focus on brand loyalty and brand quality.
- Customer looks for brand quality do not think about the price.
- The shoes weight should be light.
- Discount is the effective tools to attract the customer.
- Friends are the reference group while purchasing the brand.
C.R Kothari. Research Methodology Text book.
Consumer Behavior (Shiffman)