Jagannath International Management School: Importance of Brand Loyalty Study of Adidas

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
IMPORTANCE OF BRAND LOYALTY STUDY OF ADIDAS

BY ARPIT SHARMA BBA (MORNING BATCH) 06114101709
Introduction to Brand Loyalty

Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price. The image surrounding a company's brand is the principal source of its competitive advantage and is therefore a valuable strategic asset. It is one of the most important factors influencing an item's success or failure in the marketplace, and can have a dramatic impact on how the "company behind the brand" is perceived by the buying public. The brand is not just a representation of a company's product; its a symbol of the company itself.
Introduction to The Company

ADIDAS
ADIDAS AG is a German sports apparel manufacturer and part of the ADIDAS Group which consists of REEBOK Sportswear Company, TAYLORMADE-ADIDAS Golf Company, and ROCKPORT. Adidas headquartered in Germany, is regaining its position as one of the leaders in athletic footwear, after being close to bankruptcy in 1993.Adidas currently has about 17% of the market share in the USA (Anonymous, 2000).When Adidas merged with SALOMON (a French manufacturer of skis and golf clubs) in 1997 for $.4 billion, many outsider saw it as a bad strategic move.
Adidas first entered India in 1989, through a license agreement with BATA .Adidas later rentered India for the second time in 1996 through a joint venture with Magnum International Trading Company Ltd with an initial investment of $2.5 million to form Adidas (India) trading private limited Adidas holds a cent percent stake in the company.
The product in the Adidas sports performance division are developed for the sports performance market but have design appeal encouraging consumers to wear the product both on and off the court or playing field.
The Adidas sports heritage division contains Adidas original products. Original products seek to extend the Adidas brand unique and authenticate to lifestyle market
RESEARCH METHODOLOGY
Sample size-The sample size is 100 respondents. Primary Data-I will collect the primary data from the structure questionnaire. Secondary Data-Secondary data means data that are already available i.e., they refer to the data which have already been collected and analyzed by someone else. In investigator research, secondary data were collected from the past records (annual reports of the company, companys library material, etc.), magazines, journals, internets, etc. which definitely help me in solving out the problem of investigator research.
ANALYSIS AND INTERPRETATION
Conclusion
Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customer store choice. Location decision are harder to change because retailers have to either make sustainable investment to buy and develop real estate or commit to long-term lease developers.
The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and service and making them available at a place, time and quantity that enable the retailer to reach its goal. Merchandising is perhaps, the most important function for any retail organization, as is decide what finally goes on shelf of the store.
Pricing is a crucial strategic variable due to its direct relationship with a firms goal and its interaction with other retailing elements. The importance of pricing decision is growing because todays customers are looking for good value when they buy merchandise and service. Consumer Pull, however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customer has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factor also seen to fuel the retailing boom. Our best customers are our existing customers. No matter what type of store we have, we should try to obtain name, address and email address from each one of our customers. Keeping in touch with our customers is the best form of advertising.
Awareness level of product like.

1.Adidas 2.Nike 3.Reebok
160 140 120 100 80 60 40 20 0
Awareness Level Of Product Like
Addidas Nike Reebok
Aware 57 50 28
Informed 45 43 42
Intersted 38 43 49
Derious 40 44 61
Awareness level of product like addidas is more in the indian market as per the graph shown here, nike is coming to the next level because of the sachin as a brand ambassador of addidas, it will give more product placement in higher manner.
Which brand you purchase among the following option? 1.Addidas 2.Nike 3.Reebok
Which Brand You Purchase
Nike 39%
Adidias 28%
Reebok 33%
This question tell us about the which brand an individual purchaser want to purchase following the three brands, nike has the most brand purchase of this segment i.e. 39% of the people purchase that brand. 33% of the people want to purchase reebok for there use because of the various parameter some of them like price etc.
On what basis Recommendation given to this brand

A. Quality B. Price C. Users D. Brand name E. Any others.
A. Quality B. Price C. Users D. Brand name E. Any others. 10 33 38 20 5
E. Any others. 5% A.Quality 9% B. Price 31%
D. Brand name 19%
C. Users 36%
As per the recommendation given by the dealers on the various basis 36% of the dealers give the recommendation on the users basis for example customers choice and use i.e. for marble flooring or sports wear. 31% of the dealers said they recommended product on the Price basis because customer are very price sensitive.
In the last two years do you have some changes in dealership of any brand?
A. Yes B. NO
Yes 58
No
42
No 42%
Yes 58%
As per the study 58% of the dealers suggested there were no changes they found in last two years in the dealership at the same time 42% of the dealers said yes they have some sense of changes in this industry as well.
Suggestion
Both Adidas and Nike have used the same theoretical systems to create their brand building programs. The companies are benchmarking each other, using the techniques from each others successes. What differs in the endorsement strategies is that Adidas focuses in sponsoring teams and global events, while Nike have their center of attention on stars in specific sport like basketball and Michael Jordan or in golf and Tiger Woods. Adidas choose a brand-building strategy that built on the same theoretical criterias as Nike. But they created a differentiation in identity of the brand (see comparing analysis in the Kapferer Prism Model above) compared to Nike.
LIMITATIONS
Only one company taken for the research Grasim people not ready to provide the accurate information
THANK YOU

Jagannath International Management School: Importance of Brand Loyalty Study of Adidas

Uploaded by

Copyright:

Available Formats

Jagannath International Management School: Importance of Brand Loyalty Study of Adidas

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Jagannath International Management School: Importance of Brand Loyalty Study of Adidas

Uploaded by

Copyright:

Available Formats

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

IMPORTANCE OF BRAND LOYALTY STUDY OF ADIDAS

Introduction to Brand Loyalty

Introduction to The Company

ANALYSIS AND INTERPRETATION

Awareness level of product like.

Awareness Level Of Product Like

Addidas Nike Reebok

Which Brand You Purchase

On what basis Recommendation given to this brand

E. Any others. 5% A.Quality 9% B. Price 31%

D. Brand name 19%

You might also like