By: Lindsey Deile, Michelle Mooer and Sacha Binde

Dickinson State University

Overview

HistoryIndustry AnalysisCompany AnalysisCompetitorsRecommendations

History

Founder Adolf (Adi) DasslerOriginally Dassler Brothers Shoe

Factory1948—Separate into 2 companies:

adidasRUDA—currently PUMA

History

Official Logo— “three stripes”Incorporation Date: 1989Joined the Dow Jones Sustainability

Indexes: October 2000Expansion—Berlin, Tokyo, Paris, and

AmsterdamHeadquarters Worldwide

HeadquarterLocation

*Adidas Annual Report, 2005

Industry Analysis

Advertising:Sponsoring sporting events and

athletesTelevision commercials--$400,000

for a 30-second adMagazines/Catalogues

Industry Analysis

Advertising Continued:MailingsInternetSuggestive AdvertisingBillboards--$700 to $2,500 a month

per billboard

Sponsorship

Three Sections:General Terms—length and

definition Sponsor Needs—utilization of the

athleteAthlete Compensation--benefits

Expansion

IndustryOrigins: FootwearApparelAccessories

GloballyCountryContinental

Footwear Market Segmentation

Asia-Pacif ic, 20.40%

Europe, 32.20%

Americas, 47.40%

*Datamonitor, 2006

Distribution

CatalogsOutlet StoresCollege CampusesSporting Good RetailersMajor RetailersInternet

Regulations

Codes of ConductLabor RightsHuman RightsChild Labor Issues

Company Analysis

SubsidiariesTaylorMade-adidas GolfRockportReebok

SWOT

StrengthsSizeInnovationReputationProduct Divisions

SWOT

WeaknessesProfit MarginReturnsCash Flow

SWOT

OpportunitiesPartnershipsHealth TrendsSporting Industry GrowthFree Marketing

SWOT

ThreatsCompetitionLawsuitsRaw Materials and Shipping CostRegulations

Competitors

NikePUMA New Balance

Nike43%

New Balance 12%

Adidas22%

Puma4%

Other19%

Percentage of Total Sales

*Brandweek, 2006

Nike

Industry LeaderNike—means Greek goddess of victoryOther brands:

Air JordanTeam StarterConverseHurley International

Nike cont.

EndorsersMichael JordanSteve PrefontaineLance ArmstrongLeBron JamesJohn McEnroe

Puma

Original: RUDAGerman-basedEndorsers

Serena WilliamsKasey KahneMichael SchumacherChristy Turlington

New Balance

Founded in 1906Specialized in arch supportLicensed Product Lines

Fitness QuestEyewear DesignsMoretz SportsPackworks

Recommendation

Short-termRe-innovation of existing products

—technology, trends and stylesReebok—lower-end sales brandPartnerships—fitness equipment

and videos

Recommendation

Long-termExpansionNew target market—gay/lesbian

consumers