By: Lindsey Deile, Michelle Mooer and Sacha Binde Dickinson State University

Overview  History  Industry Analysis  Company Analysis  Competitors  Recommendations

History  Founder Adolf (Adi) Dassler  Originally Dassler Brothers Shoe Factory  1948—Separate into 2 companies:  adidas  RUDA—currently PUMA

History  Official Logo— “three stripes”  Incorporation Date: 1989  Joined the Dow Jones Sustainability Indexes: October 2000  Expansion—Berlin, Tokyo, Paris, and Amsterdam  Headquarters Worldwide

Headquarter Location *Adidas Annual Report, 2005

Industry Analysis  Advertising:  Sponsoring sporting events and athletes  Television commercials--$400,000 for a 30-second ad  Magazines/Catalogues

Industry Analysis  Advertising Continued:  Mailings  Internet  Suggestive Advertising  Billboards--$700 to $2,500 a month per billboard

Sponsorship  Three Sections:  General Terms—length and definition  Sponsor Needs—utilization of the athlete  Athlete Compensation--benefits

Expansion  Industry  Origins: Footwear  Apparel  Accessories  Globally  Country  Continental

Footwear Market Segmentation *Datamonitor, 2006

Distribution  Catalogs  Outlet Stores  College Campuses  Sporting Good Retailers  Major Retailers  Internet

Regulations  Codes of Conduct  Labor Rights  Human Rights  Child Labor Issues

Company Analysis  Subsidiaries  TaylorMade-adidas Golf  Rockport  Reebok

SWOT  Strengths  Size  Innovation  Reputation  Product Divisions

SWOT  Weaknesses  Profit Margin  Returns  Cash Flow

SWOT  Opportunities  Partnerships  Health Trends  Sporting Industry Growth  Free Marketing

SWOT  Threats  Competition  Lawsuits  Raw Materials and Shipping Cost  Regulations

Competitors  Nike  PUMA  New Balance

Percentage of Total Sales *Brandweek, 2006

Nike  Industry Leader  Nike—means Greek goddess of victory  Other brands:  Air Jordan  Team Starter  Converse  Hurley International

Nike cont.  Endorsers  Michael Jordan  Steve Prefontaine  Lance Armstrong  LeBron James  John McEnroe

Puma  Original: RUDA  German-based  Endorsers  Serena Williams  Kasey Kahne  Michael Schumacher  Christy Turlington

New Balance  Founded in 1906  Specialized in arch support  Licensed Product Lines  Fitness Quest  Eyewear Designs  Moretz Sports  Packworks

Recommendation  Short-term  Re-innovation of existing products—technology, trends and styles  Reebok—lower-end sales brand  Partnerships—fitness equipment and videos

Recommendation  Long-term  Expansion  New target market—gay/lesbian consumers