INTRODUCTION (Comfy Shoemakers Pvt. Ltd.):

About the Company:

Comfy Shoemakers Private Limited, Established in 1985 is located in Sidco Industrial Estate,Ambattur,

Chennai. The Company has 3 divisions namely, Manufacturing of Safety Shoes and has Retail(Total

15 stores) Stores of Adidas in Entire Tamilnadu and Bangalore (Karnataka).

Comfy shoemakers Pvt. Ltd. is one of the premier in retail industry as franchisee of “adidas”, it has

fourteen stores in Tamilnadu & one stores in Bangalore. The idea behind every store is to promote fresh

& trendy sports Merchandise and be the trend setter with its latest merchandise, the store not only offers

fresh sports merchandise but also keep the atmosphere of store very much trendy with its unique

interiors and VM designs. The merchandise consists of premier apparel brand “adidas” and adidas in-

house attractive range. New offers are offered to the customers often, the offers consist from attractive

membership to reduced prices to free gifts to gift vouchers. Every measure is taken to make entire

shopping process attractive.

The store staffs follows a few guidelines like every customer is greeted smartly with a Welcome to

Adidas and a smile, staffs are pushed to be proactive in order to simplify the search of customers.

The sections which a store has for apparel are:-

Footwear

T-Shirts

Polos

Shorts

Track Pants

Track Suit

Socks

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Bags

Caps

Fitness Equipments.

Sports equipments.

COMPANY PROFILE (Comfy ShoeMakers Pvt.Ltd.):

Comfy ShoeMakers Private Limited, Established in 1985 is located in Ambattur Industrial

Estate, Chennai. The Company had 3 divisions namely, Manufacturing of Shoes,

Distributing “adidas” entire range of Products for the State of Tamilnadu and Retail

EBO’S of Adidas. But these years company is concentrating on retail sector specially &

also manufacturing products for sports brand “adidas”.

CSPL, was promoted by Mr.Vasu V.Bhatia, B Tech ( Footwear ), who is the Chairman of

the company. The other Directors are Mr.Upendra Bhatia and Mr.Devendra Bhatia.

The Manufacturing division is specialising in Manufacturing Leather Shoes with Direct

Injection process of PVC, Direct Vulcanise process of Rubber and Stuck on process of

Polyurethane.

We at Shoemakers believe in Manufacturing Safety Shoes of high quality, with

competitive price and outstanding Customer Service and Timely Delivery.

We are dedicated to provide our Customers with the most comprehensive variety of up

to date Shoes. Our Shoes are made of Prime Quality Raw Material.

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Our Shoes are guaranteed against any Manufacturing defect and have a very

satisfactory wear to Customers.

The Distribution division takes care of the Whole sale Business of Adidas Entire

Range of Products for the region of Tamil Nadu.

The Range includes Footwear, Apparels consisting of T-Shirts, Shorts, Track Pants,

Track Suits, and the Accessories range includes Socks, Bags, Caps, and Fitness

Equipments.

We have 80 dealers across Tamil Nadu, which includes Exclusive Adidas Stores, Multi

Brand Dealers, Shop in Shops in cities namely Chennai, Coimbatore, Trichy, Madurai,

Erode, Salem, Ooty, Coonoor, Tirunelveli, Nagercoil, Tirupur, Karur to name a few.

The Retail Division takes care of the Exclusive Adidas stores. CSPL, has 15 stores in

Tnagar( Second Largest Adidas Store in Asia ), TTK Road , Annanagar, Nelson

Manickam Road, Chrompet, Spurtank , Trichy, Salem, Ooty,

Tirunelveli ,Ponicherry,Ambattur, Express avenue, Erode and Residency in

Bangalore.

Comfy shoemakers deals with only one type of format.

i.e EBO (exclusive branded outlet),

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Outlets of EBO cover the following store:

Adidas Nm Road

Adidas T nagar

Adidas Pondichery

Adidas Ooty

Adidas Chrompet

Adidas Salem

Adidas Tirunelveli

Adidas Annanagar

Adidas Egmore

Adidas TTk

Adidas Trichy

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Adidas Residency

Adidas Express Avenue

Adidas Ambattur

Adidas Erode

Company hierarchy:

CHAIRMAN

MANAGING DIRECTOR

CLUSTER HEAD

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CLUSTER MANAGER

STORE MANAGER

ASSITANT STORE MANAGER

CUSTOMER SERVICE ASSOCIATE

STOCK BOY

Management Team:

Vasu bhatia, Chairman

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Upendra Bhatia, Jt. MD.

Debendra Bhatia, Jt. MD.

Amita Raj, Cluster Head.

Rajendra Das, Cluster Manager

15 Store Managers.

15 Asst. store managers.

Adidas year by year:

1949

The foundation

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18 August - adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das'

from Dassler.

954 - The 'Miracle of Bern' Germany battle Hungary with a competitive advantage. They are wearing

adidas soccer boots which for the first time feature removable studs.

60s

Higher

Driven by a desire to help all athletes committed to performance, adidas manufactures equipment for

what some consider "fringe sports". Unconventional high jumper Dick Fosbury launches himself up

and over in adidas footwear.

70s

The "adidas" team wins

Crowning moment: Franz Beckenbauer, the "Kaiser", raising the World Cup in victory salute.

Germany had just beaten Holland 2-1 in the 1974 final.

80s

The transition

After Adi Dassler's death, Adi's wife Käthe, his son Horst, and his daughters carry on the business.

90s

With a new management

Under the CEO Robert Louis-Dreyfus, adidas is moving from being a manufacturing and sales based

company to a marketing company.

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1995

adidas goes public

Flotation of the company on the Frankfurt and Paris Stock Exchange.

1996

A splendid year

The "three-stripes company" equips 6,000 Olympic athletes from 33 countries. adidas athletes win

220 medals, including 70 gold. Apparel sales increase 50%.

1997

adidas-Salomon AG

adidas AG acquires the Salomon Group with the brands Salomon, TaylorMade, Mavic and Bonfire in December 1997. The

new company is named adidas-Salomon AG.

1999

The new brands

The integration of the new brands is gaining momentum. The new TaylorMade FireSole clubs boost sales. Salomon in-line

skates take off with high double-digit growth during the first half of 1999.

2000

New management

Following personnel changes, the new management initiates an ambitious Growth and Efficiency

Program. Major sports events such as the European Soccer Championship EURO 2000™ and the

Olympic Summer Games, where swimmer Ian Thorpe takes three gold medals, contribute to the

company’s success.

2005

Sale of Salomon 

The Salomon Group (including Salomon, Mavic, Bonfire, Cliché and Arc’Teryx) is being sold to

Amer Sports in October 2005. The new adidas Group is focusing even more on its core strength in

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the athletic footwear and apparel market as well as the growing golf category. The legal name of the

company will change to “adidas AG” in May/June 2006.

2006

adidas-Salomon AG acquires Reebok 

The closing of the Reebok transaction on January 31, 2006 marks a new chapter in the history of the

adidas Group. By combining two of the most respected and well-known brands in the worldwide

sporting goods industry, the new Group will benefit from a more competitive worldwide platform,

well-defined and complementary brand identities, a wider range of products, and a stronger presence

across teams, athletes, events and leagues.

Adidas history:

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adidas AG is a major German sports apparel brand and manufacturer of excellent

quality sports equipments. It registered as adidas AG on 18 August 1949 (with lower-

case lettering: "adidas"). Adidas AG is the parent company of adidas group, which also

includes Reebok sportswear, Taylormade-adidas golf company & Rockport. The

company was named after its founder, Adolf ( Adi ) Das sler , who started producing

shoes in the 1920s in Herzogenaurach, near Nuremberg, with the help of his brother

Rudolf Dassler who later formed rival shoe company PUMA AG. The company's

clothing and shoe designs typically include three parallel stripes of the same color, and

the same motif is incorporated into adidas' official logos. Layer the company formed

three criteria for retailing

adidas plans to become the leader in the organised sports footwear and sportswear

market.

Adidas in India

adidas first entered India in 1989 through a licence agreement with Bata. adidas later re-

entered 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 Pvt. Ltd. adidas holds a 100 percent stake in the company.

The company launches every six months between 600 and 800 new designs in footwear

and between 1,500 and 2,000 new designs in apparels. The apparel range is priced

between Rs279 and Rs2700, while the footwear is priced between Rs499 to over

Rs12499. adidas' products in India are sold through 140 own outlets (excluding multi-

brand outlets).

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The company, which is known for football and running shoes, introduced its cricket

gear in India in 2004.

The company adheres to strict quality and design specifications and uses the

manufacturing unit of Lakhani Footwear to manufacture the locally produced adidas

range in India.

Around 30-40 percent of the components are locally sourced.

Industry Scenario

Footwear brands drew up ambitious plans targeting a larger audience and higher market

share.

MNC brands like Reebok and Adidas launched television commercials after a gap of

four years and brand shops were filled with a fresh and upgraded product line-up.

The new distribution strategy focused on extending the reach rather than exclusivity and

at broad-basing distribution through tie-ups with branded retailers and setting up shop in

shopping malls.

For adidas, sales of higher priced footwear recorded strong growth in 2003-2004 and

the company expected to close the year with a 30 percent growth.

Now have a look in scenario of business atatement of adidas group recently:

Currency inMillions of Euros

As of: Dec 312006

ReclassifiedEUR

Dec 312007

ReclassifiedEUR

Dec 312008

ReclassifiedEUR

Dec 312009EUR

4-YearTrend

Revenues 10,084.0 10,299.0 10,799.0 10,381.0

TOTAL REVENUES 10,084.0 10,299.0 10,799.0 10,381.0

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Cost of Goods Sold 5,589.0 5,417.0 5,543.0 5,669.0

GROSS PROFIT 4,495.0 4,882.0 5,256.0 4,712.0

Selling General & Admin Expenses, Total 1,592.0 1,705.0 1,508.0 1,376.0

Other Operating Expenses 2,012.0 2,246.0 2,703.0 2,796.0

OTHER OPERATING EXPENSES, TOTAL 3,604.0 3,951.0 4,211.0 4,172.0

OPERATING INCOME 891.0 931.0 1,045.0 540.0

Interest Expense -184.0 -166.0 -178.0 -138.0

Interest and Investment Income 37.0 27.0 37.0 16.0

NET INTEREST EXPENSE -147.0 -139.0 -141.0 -122.0

Currency Exchange Gains (Loss) 2.0 7.0 -25.0 -25.0

Other Non-Operating Income (Expenses) -13.0 -2.0 -- -3.0

EBT, EXCLUDING UNUSUAL ITEMS 733.0 797.0 879.0 390.0

Impairment of Goodwill -- -- 21.0 --

Gain (Loss) on Sale of Assets 1.0 21.0 10.0 3.0

Other Unusual Items, Total -11.0 -3.0 -6.0 -35.0

EBT, INCLUDING UNUSUAL ITEMS 723.0 815.0 904.0 358.0

Income Tax Expense 227.0 260.0 260.0 113.0

Minority Interest in Earnings -13.0 -4.0 -2.0 --

Earnings from Continuing Operations 483.0 551.0 642.0 245.0

NET INCOME 483.0 551.0 642.0 245.0

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

483.0 551.0 642.0 245.0

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

483.0 551.0 642.0 245.0

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Pre-1997, adidas had tied up with Bata and Woodland and first began exploring multi-

brand outlets and retail malls.

Reebok was slated to grow by almost 30 percent against 22 percent in 2002-03 and

focused on its global Performance Range products. Bata started retailing other brands

like Reebok, Nike and Lee Cooper.

As of 2005-06, the current premium sports goods market in India was valued around Rs

500 crore. Within this market, adidas enjoys considerable brand equity and is

considered among the leading international brands in the country.

Scope of Study

I have selected the Footwear(Athletic) and apparels as Product Category.

The main multinational players in this industry are Nike, Puma, Fila, adidas & Reebok.

Indian players include Action Shoes Ltd., Liberty Footwear Co., and Bata India Ltd.

This report will mainly consider Nike & Rbk (Reebok) as competitors for adidas. Other

than this as adidas is now trying to make a customer base in apparel sector also so

casual wears brands like levi’s, Pepe are also coming into competitors.

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Adidas technologies & their benefit

Technologies Features Benefit

Adiprene Located in the heel area Good cushioning,shock

absorbing, stability &

durability

Adiprene+

Located in the forefoot area Highly elastic, gives

better toe-off

Torsion

Traxion

Located in midfoot area

Located in the outsole area

Provides support to the

arch, gives stability &

control

provide maximum grip in

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all direction

Pro-moderator

Light weight & durable

midsole system

Provide stability for flat

feet people

Climacool

Most ventilated product Maximum ventilation,

keeps feet cool & drier

Climawarm

Trapping body heat,

reducing exess heat loss

Keeps body warm in cold

environmental condition

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SWOT ANALYSIS OF NIKE AND ADIDAS

(With respect to e-commerce)

STRENGTHS

1. First movers advantage in e-

commerce.

2. Brand recognition and reputation.

3. Diversity in products offered on the

web. (footwear, apparel, sporting

equipment etc).

4. Strong control over its own

distribution channel.

5. Innovative designs in footwear

enabling consumers to design their

own shoes online.

6. Secondary websites (eg.,

soccerevolution.com)

WEAKNESSES

1. Negative image portrayed by poor

working conditions in its overseas

factories.

2. E-commerce is limited to USA.

3. Online customer service not

“helpful” or easy to find.

4. The direct sale to consumers is

creating conflicts with its own

resellers.

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OPPORTUNITIES

1. Increased demand in the industry

for products available online.

2. E-commerce will reduce the cost of

goods sold.

3. Expand e-commerce to global

markets.

4. Possibility of outsourcing web

development and e-commerce to a

third party developer.

5. Expand e-commerce to global

markets

6. Growing reputation in non-

basketball sports will boost e-

business.

THREATS

1. Increase in price of providing

technological solutions (e-

commerce).

2. Strong competition from some of

its major challengers in all

branches of the business.

3. Negative image created by the

sponsored athletes (i.e. Kobe

Bryant and his sexual assault

case).

4. Possibility of distress from

growing beyond its capabilities.

E-BUSINESS MODEL

Nike and Adidas have adopted a merchant model which has three pillars of their e-

commerce strategy:

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1. Pure-play e-tailer

2. Tricks and clicks

3. Their online store.

The main purpose of acquiring relationships with pure-play e-tailers is to promote and

market products on an international level. Nike has landed a deal with Fogdog Sports

which will sell their entire Nike product line on its web site. Adidas signed an

agreement with SportsLine.com and Sports.com. Fogdog.com, Sports.com, and

SportsLine.com have the initial coverage in the US, UK and eventually in Asia. Nike

and Adidas will also operate their traditional o, while selling their specialty products on

their e-commerce web sites. This business model is referred to as "Bricks and Clicks."

The primary goals of operating a bricks and click site is to increase sales, reduce cost,

increase market reach, applying competitive pressure, promoting new products,

improving customer service, and progress in addressing user concerns.

EFFECTIVENESS OF E-BUSINESS

Nike's ability to realize the potential of the Internet has placed them in the e-commerce

leadership position among other sporting goods companies. Through its initiative to be

the first to market with its e-commerce web site launch back in 1999. By continuously

relying on innovative companies to redesign the site, Nike acquired the luxury of

owning a site that's every bit as inspirational as it is informational, an important

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milestone for a market leader. Today, Nike's store enables online consumers to design

key elements of the shoes they purchase. This program is the first time a company has

offered such mass customization of footwear.

Adidas's approach to e-commerce was that of a follower since Nike was first. As a

result, Adidas relentlessly pursued innovation and refreshing content to differentiate

itself from Nike. Adidas also realized that in order to be successful it has to be fully

committed to this initiatie. That's why it included adidas.com as part of its three pillar

strategy along with pure play e-tailers, bricks and clicks. The final result is a web site

that successfully portrays Adidas's product portfolio in an interactive and informational

manner.

Nike and Adidas seem to follow similar online strategies but Adidas experienced a

greater transformation from being a minor, insignificant player back in 1998 to the

number two position in the athletic footwear and apparel industry. Part of this success is

due to Adidas's ability to thoroughly leverage the Internet as a marketing and e-

commerce medium, most of it at the expense of Reebok. In the Nike's case the online

strategy ensured its strong leadership position in the intensely competitive market. No

other athletic footwear company is able to outshine these two firms when it comes to e-

commerce.

VS

Consumers

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In 1999, when adidas entered the Indian market, it introduced the cheapest range of

shoes it had ever sold keeping Indian consumers in mind. The new line took into

account the importance of affordability in the Indian market, and the company expected

the move to expand their customer base by 20%.

But today, the customer has changed. Andreas Gellner, MD of adidas India, tells us:

“Today’s Indian customer is aware of international fashion and technology and he cares

about them. He is also a big sports enthusiast. We have also noted the need for constant

change—which implies faster turnaround for designs and therefore newer products.

On the other hand, the buying experience is becoming crucial. The retail scenario in

sportswear is changing accordingly—marketers are focusing on shop design and service

and on brand consistency across outlets; they are paying a premium on technology and

innovation. This has also been impacted to a large extent by the mall mania and the

growth of the high street.”

From our meeting with adidas’ marketing executives we gathered information about

how they defined their target demographic. They target the 15-35 age group, both males

and females, with a monthly income of over Rs15000.

The consumer is typically an image-conscious sports fan, but not necessarily a

sportsman.

||| Consumer Behaviour |||

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Our market research delves into the customer mindset, trying to assess the population

and coming up with demographic details as to who our target customer is. This is being

done by a two-pronged strategy of reaching out to the young working class on the one

hand (in and around NCR) and also by assessing the student strata who are pursuing

their post-graduation (IMT, DSE, FMS etc). This would leave us with roughly 120

separate assessments on buyer behaviour on which we plan to base our studies.

FIFA World Cup 2006 and other Football Tournaments

The World Cup's Status so far:

Respondents: 118

Dates of response: 27-08-2006 to 17-09-2006

Demography: Students (post-graduate – 107, young working class – 11)

Method of survey: Online

Some of our observations so far:

Only around 3% of the total respondents cited Price as the number one factor

influencing their purchase decision, and another question showed that comfort, weight

and styling of the shoe were important elements of the shoe. This initially seems to

indicate that the Indian customer no longer fits the price-sensitive stereotype, but a

closer look at the results shows a different picture. The survey also showed that 62.93%

budgeted less than Rs. 2000 for their sports shoes. This shows that while Price is almost

never the most important factor for most respondents, it is certainly a very important

consideration.

More respondents own a Reebok pair than adidas (second place) and Nike (third),

but when asked which brand they would like to own, Nike topped list, followed by

adidas and Reebok. This shows that Reebok’s Indian pricing has managed to attract

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more market share than its rivals, but Nike still has the highest brand equity and

perceived value.

Nike being the world-wide leader does well on advertisements and viewer/customer

attention-catching and carries the best image of the 3 top brands. It is the brand that

people want to own.

The survey also revealed that customers felt that Sales Staff Service was the most

important part of the buying experience. With 51.46%, it beat the other 4 factors by a

long way.

Environmental Analysis

Global TV and Web audience was bigger than the Olympics' or the Super Bowl's -- 38

billion in-home viewers worldwide. Adidas was an official sponsor and paid for the

rights to shut Nike out of TV advertising in the U.S. for all 64 games.

The retailers we spoke to acknowledged that the World Cup caused a sharp spike in

sales, both of the football (Teamgeist) and footwear & jerseys. Globally, by end-June

2006, adidas had already sold $1.5 billion worth of football products this year owing to

the then ongoing World Cup. Football-related sales were expected to stabilise at slightly

above 1.0 billion euros in 2007 before rising again in 2008, when the football European

Championships take place. It had already sold a record three million replica jerseys in

the wake of the football event, including 1.5 million jerseys of the German national

team.

At the previous World Cup in 2002, the company sold 1.5 million federation jerseys and

250,000 German jerseys.

It has also sold more than 15 million of its "Teamgeist" World Cup match balls,

compared with 6.0 million of the replica ball for the 2002 tournament.

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Adidas is an official sponsor, supplier and licensee of the World Cup and is sponsoring

six national teams in the tournament, including host country Germany. Three teams

sponsored by Adidas - Germany, France and Argentina - reached the quarter-finals and

France went through to the finals.

Adidas estimated its global share of the soccer footwear market rose by 1-2 percentage

points to 35-36 percent at the end of the first quarter.

The company also announced that it has signed a long-term partnership to be the global

sponsor for Euro 2008, which will take place in Austria and Switzerland. It has also

extended its partnership with the UEFA Champions League to become the official ball

supplier until 2009.

BPO Boom

This booming industry has emerged as a boon for the hundreds of thousands of job-

hunting Indian youth and aims to grow into Rs.100,000 crore industry generating over

1.1 million jobs by 2008.

As we shall explain later, the Call Centre Crowd is characterised by high disposable

income, which is spent on lifestyle products. Therefore, this constitutes a segment of

increasing importance for adidas.

Retail

We visited retailers of leading footwear brands in chennai, and we gained an insight

into the workings of the retail business. Periodical meetings are held, where the

company shows samples of its various models and products to the retailers. It is up to

the retailers to decide which products they will stock in their shops, how and when they

will put them on display and when they will be put up for sale. Thus, retail outlets of the

same brand might well have differentstocks of different products at the same time.

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Sales staff is another important factor. The Reebok retailer told us that Reebok does

not allow retailers to hire their own sales staff without company approval. All sales staff

must pass the company’s test before getting the job. The same does not apply to adidas

though. Retailers for this company are allowed to hire salespersons they feel will be

effective. Training for salespeople, however, happens across the board. Reebok believes

that investing in salespeople is a cause for their higher sales, and will be a source of

sales growth in the future.

Area Sales Managers (ASMs) are in constant touch with their retailers and actively

take their feedback and suggestions. adidas mentioned that they occasionally employ

mystery shoppers to get a better feel of the customer’s perspective.

The décor and ambience of the stores is under the control of the retailer, but still

guided by the company’s direction. The number of posters within the store, the type of

music, etc. generally conforms to company policy.

||| Competitors |||

Nike

Nike, Inc. is a major American manufacturer of athletic shoes, apparel, and sports

equipment. It is well known for its strong sponsorship agreements with athletes, leagues

and federations, as well as many of the world's top football clubs and national teams,

including Manchester United, Arsenal F.C, Brazil and even India.

Nike is the leading brand in sports footwear worldwide. In India, we have seen that

although its brand image is good, its sales are not. Nike products don’t compromise on

quality, and are always full-price. They do not have post-season discount sales on

footwear unlike adidas and Rbk. While no brand can neglect the highly price-sensitive

consumer, Nike certainly does not target them. They use their higher perceived value to

charge a premium for their products.

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Reebok

Also known by its contraction Rbk, Reebok International Limited is an Anglo-

American Fortune 500 company, now subsidiary of Adidas AG, and producer of

athletic footwear, apparel, and accessories.

Founded in 1895, the family-owned business proudly made the running shoes worn in

the 1924 Summer Olympics by the athletes, Harold Abrahams and Eric Liddell

celebrated in the film Chariots of Fire.

In August 2005, one of the company's largest rivals, Adidas, announced that it would

acquire Reebok for $3.8 billion. The acquisition would increase adidas' market share in

North America and allow it to pose a serious threat to the world's biggest maker of

sports apparel, Nike. The deal was completed in January of 2006.

We gathered from the retailers that in India, adidas and Reebok are still very much in

competition with each other. Both are trying to get to the #1 position presumably to

garner as much market share as they can, and in the process take some from Nike as

well.

||| Segmentation |||

For adidas the market segments in consideration are based on demographics,

psychographics and behaviour. The demographic segmentation is based on age, gender,

income and occupation.

The market is segmented into three main categories based on age. These segments are

age groups 1-15 years, 15-35 years and above 35 years.

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Based on monthly household income the market is segmented into below Rs.15000 pm,

Rs.15000 to Rs.50000 pm and above Rs.50000 pm. The market is also segmented based

on gender and occupation (which leads to differential disposable incomes).

Psychographic segmentation is of great importance for the sport shoe industry. The

higher income groups are classified based on their tendencies into four major

categories; the innovators, thinkers, achievers and experiencers. As for the groups with

lesser resources, they are categorized into believers, strivers, makers and survivors.

Under behavioral segmentation an important user group is the sports and fitness

conscious population. This segment is further subdivided into gym regulars,

professional and amateur athletes and even drawing-room sports enthusiasts.

||| Targeting & Positioning |||

Based on information gathered from retailers and adidas executives, it is evident that the

major demographic segment targeted by adidas is the age group of 15-35 years. Very

few footwear products are aimed at the female market.

adidas targets households with monthly incomes greater than Rs. 15,000. Households

with incomes between 15,000 and 30,000 rupees per month don’t buy a new pair as

often as higher income brackets. This is primarily because they use shoes as shoes and

not as style/image products. It is important that when this group enters the market with

an intention to buy, they should buy from adidas. To ensure this, adidas should sell

durable, comfortable shoes at a reasonable price to this group.

A crucial segment adidas has identified is the Call Centre Crowd. This segment is

substantial in the metros and is expected to continue its rapid growth. It consists of

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image-conscious youth who are earning but are not yet independents. This means that

their entire income is disposable. adidas seeks the highest share of wallet from these

consumers.

Under psychographic segementation, adidas targets…

Experiencers: young, enthusiastic, impulsive people who seek variety and

excitement.

Strivers: Trendy and fun-loving people who are resource-constrained but favour

stylish products that emulate the purchase of those with greater material wealth.

Image Drivers: The wealthy few who set the trends in their social circle. This is

the segment responsible for the selling out of the Rs.12499 adidas One - adidas’

most expensive shoe in India.

The company targets behavioral segments also: The sports and fitness conscious

population is further subdivided into gym regulars, professional and amateur athletes

and even drawing-room sports enthusiasts. “adidas” has specific products for each of

these sub-categories.

Cross-training shoes, running shoes, etc. are aimed at gym regulars and runners. Shoes

are designed specifically for sports like cricket, football, basketball and now even

adventure sports like rock-climbing. We can take a particular segment which we call

Hardcore football. It refers to young footballers, passionate about playing the sport,

with the means to pay. A good example here would be adidas’ “Predator”, which sets

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the standard for football studs. From 2010 world cup we now maximum number of

teams are using adidas products, this year also adidas team Spain won the cup.

“adidas” rightly sees themselves as the world leaders in football shoes. This is the only

sport market in which they lead Nike. The brand has been synonymous with football

ever since Adi Dassler invented the first adjustable rubber screw-on studs. An

interesting fact: Every World Cup winning team before 2006 wore adidas football

boots!

Sport-inspired designs are incorporated into adidas’ lifestyle products for the sports

enthusiast. For example, there is a shoe that is designed like an F1 driver’s shoe. The

heel is molded to fit into the floorboard of an F1 car and the sole is made of Goodyear

rubber – the same rubber that F1 tyres are made of! Despite the effort put into design

and manufacturing of the shoe, it is still meant to be a lifestyle product.

||| Recommendations |||

After analysing the data, we find that although adidas has a greater market share than its

arch-rival Nike, it still lags behind in brand image. To tackle this problem, we will now

show you what very few Indians have seen. Globally, adidas sells products under 3

divisions.

www.adidas-group.com provides us with a clear definition of these divisions.

Divisional Strategy

The divisional strategy has been developed to provide three distinct consumer segments

with product and marketing concepts that fulfill their unique needs and desires. The

three divisions are:

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Sport Performance Division Innovate to perform.

This division is completely focused on the athlete who demands performance first and

style second. Every sport is important, but the main categories of running, football,

basketball, as well as the women’s segment, are the primary focus in terms of both

footwear and apparel.

Sport Heritage Division Celebrate Originality.

This division looks to our past for inspiration and direction for the authentic and

contemporary products of the future. These are footwear and apparel products that

clearly have a foundation in sport but are meant for lifestyle and street wear.

Sport Style Division Modern Sportswear.

The newest division is directed at the style and fashion conscious consumer who still

desires the look and attitude of sport but in a new, more sophisticated interpretation. It

is the foundation in sport that adidas and this consumer share that makes this division so

exciting and full of potential for both footwear and apparel.

adidas can claim the prime position in the elite SEC, capturing share of both mind and

heart if they introduce adidas Originals (also known as Heritage) and adidas Style.

These are extremely up-market products: High profile designers of the likes of Stella

McCartney and Yohji Yamamoto combine cutting-edge technology with unique styling

and passion for sport.

This will enable adidas to target the Achievers psychographic segment, i.e. “success,

goal-oriented people who focus on career and family and favour premium products that

demonstrate success to their peers.”(Kotler & Keller)

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After acquiring a stagnating Reebok for 3.8 billion pounds, adidas must prove the deal

was more than a market share grab and integrate the companies smoothly. Considering

that adidas themselves admitted that the female market is not catered to properly but

still has great potential for growth, we think that Reebok should be used to tackle the

relatively untapped women’s sport shoe market. It could additionally tackle the price-

sensitive market.

Reebok has previously grown on the base of an urban, street, hip-hop image. This

image does not conflict with any of adidas’ target markets and should thus be exploited

to the full.

adidas could benefit from taking a leaf out of Reebok’s retail book. Reebok does not

allow retailers to hire sales staff. All sales staff have to have passed a centralised test.

This ensures that Reebok hires employees that are equipped with the right knowledge

and attitude towards service that is required to succeed in the Indian market. We know

that service at the point of sales is a crucial element of the buying experience because

51.46% of the respondents of our survey marked it as the single most important

element.

||| Appendix |||

Consumer Survey

Age

19-21 53 (44.92%)

22-24 54 (45.76%)

25-27 8 (6.78%)

>27 3 (2.54%)

Gender

Male 89 (75.42%)

Female 29 (24.58%)

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Do you own a pair of sport shoes?

Yes 111 (94.07%)

No 7 (5.93%)

If yes which Brand/s? (you can chose more than one)

Which is the most important factor to you while purchasing sneakers/sport shoes?

Price 4 (3.39%)

Durability 16 (13.56%)

Comfort 58 (49.15%)

Looks and styling 30 (25.42%)

Brand image 6 (5.08%)

Other 4 (3.39%)

Sole 45 (12.82%)

Inside cushioning 59 (16.81%)

Weight of the shoe 71 (20.23%)

Laces 7 (1.99%)

Material 48 (13.68%)

Styling 65 (18.52%)

Color 53 (15.10%)

Other 3 (0.85%)

Which brands advertisements do you like the most?

Adidas 44 (37.29%)

Nike 43 (36.44%)

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Reebok 27 (22.88%)

Other 4 (3.39%)

Which brand of shoes would you like to own?

Adidas 40 (33.90%)

Nike 45 (38.14%)

Reebok 25 (21.19%)

Others 8 (6.78%)

Which aspect of buying experience do you consider most important?

Shop Design 14 (13.33%)

Service 53 (50.48%)

Ambience 14 (13.33%)

Shop Location 19 (18.10%)

Others 5 (4.76%)

Function Of Retail Store Operations:

The function of retail store operations is to ensure that the store runs smoothly

and efficiently through thoroughly defined processes in each & every area.

Retail operations must ensure that every process in the store is both customer –

friendly and cost – effective.

Setting performance standards is critical to the efficient functioning of a retail

organization. Such standards have to be clearly defined.

Measuring performance through defined reports provides an indication about the

health of the retail store in every area of its operations.

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Buying & Merchandise:

The term merchandising is unique and exclusive to the retail industry. It refers to the

entire process of inventory planning and management in a retail organization.

Role of Merchandise manager:

Planning

Directing

Co – ordination

Controlling

STOCKS REFILMENT-

1. On every Tuesday I use to prepare top 20 selling item of one week, sales report & tock on hand report & send it to the head office.

2. According to that we get the stocks which are out of stock or fast moving articles, we can also recommend the head office if any specific items which we feel will run good in our respective store.

The buying Function:

Buying for a retail organization is a critical function of merchandising. The process begins with the preparation of the buying plan, called ‘Open to Buy’. It helps retailers projects and control future buying so that the flow of merchandise in the store matches anticipated sales at desired stock turn rates to give a positive cash flow.

An efficient OTB Plan has the following elements:a) Forward Sales Planningb) Forward Cover.c) Stock Required.d) Opening Stock.e) Intake Requirement.f) On order.g) Open to Receive.h) Closing Stock.

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Advantage of an OTBa) The OTB plan enables retailers to estimate in advance the amount of working

capital that needs to be employed in inventory from month to month.b) It helps ensure the right inventory level to support planned sales and to attain the

best gross margin return on inventoryc) The OTB plan places places restraints on merchandise commitments so that the

store receives the right merchandise at the right time and not before of after.d) It enables a continuous flow of fresh merchandise into the store month after

month during the season.e) The OTB plan establishes goals so that the actual performance can be compared

with the plan and corrective action taken in the required areas.f) Above all, an efficient OTB plan provides the organization more opportunity for

profit.

Visual Merchandising :

Visual Merchandising is the art of displaying merchandise in a manner that is appealing

to the eyes of the customer. It sets the context of the merchandise in an aesthetically

pleasing fashion, presenting them in a way that would convert the window shoppers into

prospects and ultimately buyers of the product. A creative and talented retailer can use

this upcoming art to breathe in new life into his store products. Passion for design and

creativity are essential to be a good visual merchandiser. A perfect design process and

the ability to create ideas that are different are required. Awareness of happenings in

fashion world is needed so as to keep up-to-date with the dynamics of the market

constantly.

 

Visual merchandising includes window displays, signs, interior displays, cosmetic

promotions and any other special sales promotions taking place. .

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Visual Merchandising is not a science; there are no absolute rules. It is

more like an art in the sense that there are implicit rules but that these also exit to be

broken for striking effects. The main principle of VM is that it is intended to increase

sales, which is not the case with a “real” art. It is one of the final stages in trying to set

out a way that customers will find attractive and appealing and it should follow and

reflect the principle that underpin the store’s image. VM is the way one displays’ goods

for sale’ in the most attractive manner with the end purpose of making a sale.

“If it does not sell, it is not Visual Merchandising.”

VM is the art of implementing effective design ideas to increase store traffic and

sales volume.VM is an art and science of displaying merchandising to enable maximum

sale. It is a tool to achieve sales and targets, a tool to enhance merchandise on the floor,

and mechanisms to communities increase ate to a customer and influence his decision to

buy. VM uses season based displays to introduce new arrivals to customer, and thus

increase conversions through a planned and systematic approach by displaying stocks

available. Recently visual merchandising has gained in importance as a quick and cost

effective way to revamp retail stores. A close sister to visual merchandising is “retail

experience”. “Customer experience” looks at the same issues around product

presentation but from the customer perspective, rather than the retailer perspective.

Status of VM in India:

Unlike the western countries, where VM receives highest priority in commercial

planning of a product, the Indian industry understands and practice of the concept of

VM is inadequate.  With phasing out of quantitative restrictions after the year 2004, the

textile industry will have to compete purely on the competitive edge of the products and

VM will be a helpful tool in projecting the uniqueness of the products and thereby

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increasing the market access and sales.  It is high time that the Indian textile and

clothing industry, therefore, understands and adopts the scientific and professional

system of VM rather than the traditional practices of display of products and

communication

How Visual Merchandising Helps The Shopper:

Retail professional’s displays to make the shopping experience more comfortable,

convenient and customer friendly by:

Making it easier for the shopper to locate the desired category and merchandise.

Making it easier for the shopper to self-select.

Making it possible for the shopper to co-ordinate & accessorize.

Providing information on sizes, color & prices.

Information about the latest fashion trends by highlighting them at strategic

locations.

Educating the customers about the product/service in an effective and creative

way.

Establishing a creative medium to present merchandise in 3D environment,

thereby enabling long lasting impact and recall value.

Setting the company apart in an exclusive position.

Establishing linkage between fashions, product design and marketing by keeping

the product in prime focus.

Combining the creative, technical and operational aspects of a product and the

business.

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Drawing the attention of the customer to enable him to take purchase decision

within shortest possible time, and thus augmenting the selling process.

Merchandise presentation refers to most basic ways presenting merchandise in an

ordinarily, understandable,’ easy to shop’ and ‘find the product’ format. This easier

format is especially implemented in the fast fashion retailers. Apart from above

points VM also helps in following aspects:

1. Sell by showing and promoting.

2. Create an emotional connect between the viewer and the display.

3. Encourage the shopper to enter the store

4. Get the customer to pause and shop and “shop” the selling floor

5. Establish, promote, and enhance the store’s visual image.

6. Entertain customer and enhance their shopping experience.

7. Introduce and explain new products.

The Importance of Visual Merchandising:

Visual Merchandising is the art of displaying merchandise in a manner that is appealing

to the eyes of the customer. It sets the context of the merchandise in an aesthetically

pleasing fashion, presenting them in a way that would convert the window shoppers into

prospects and ultimately buyers of the product. A creative and talented retailer can use

this upcoming art to breathe in new life into his store products. Passion for design and

creativity are essential to be a good visual merchandiser. A perfect design process and

the ability to create ideas that are different are required. Awareness of happenings in

fashion world is needed so as to keep up-to-date with the dynamics of the market

constantly.

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Visual merchandising includes window displays, signs, interior displays, cosmetic

promotions and any other special sales promotions taking place.

 

Components of Visual Merchandising:

 

There are certain things which a retailer needs to take care while proceeding with the

process of displaying his products. These components when combined together in a

proper ratio will make a successful outcome.

 

Make merchandise the focal point:

 

The main goal of display is to showcase the products within the overall display area.

Customers give three to five seconds of their attention to window display. The retailers

visual message should be conveyed to the customer in that short period of time. It

should not be like an unsuccessful TV advertisement, where the product is forgotten

altogether and only the concept of the commercial remains in the mind of the viewer.

The arrangement of window display should go with the product and should not suppress

them to make it discernable to the eye.

 

Right choice of colors is vital:

 

Color is one of the most powerful tools in the Visual Merchandising segment. It is a

visual perceptual property. Colors can be associated with emotions, special occasions

and gender. It attracts attention and pulls more customers into the store. A retailer has to

focus on the right choice of color that would match with the theme of display. It is not

possible to satisfy everyone all the time, but it is possible to cultivate the taste of

customers gradually and purposefully. A right choice of colors in the display items can

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turn walkers into stoppers and significantly convert them into customers. It is therefore

mandatory to choose the right color for the right theme of display. A Halloween display

would require black color in the display theme. Valentines theme should be ruled by red

color supplemented with pink and white. A display of babies accessories should reflect

light shades of pink and blue colors. A Christmas display should contain colors of red,

green, gold and silver.

 

Display themes to appropriately support the product:

 

A theme is a display of sale items of similar categories e.g. a display of kitchen

accessories. Its essential to have themes for all retail displays. They can be romantic,

wild, or capricious, and capture peoples imaginations.

A good theme will lure the customer with a shopping mood into the store. Themes

mainly depend upon the retailer’s imagination and creativity. Focusing on the right

theme rather than creating a display with expensive raw materials is the key to

successful window display. A shoe store theme can be a group of elves buying shoes. A

theme for display of casual wears can be a group of mannequins sitting casually at a get

together in different poses. Related themes will tug the heartstring of the customers and

will pay off.

MIS(Management Information System):

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MIS (Management information system) is a system which provide essential information

to the upper level management by the help of software, hardware, human resource. It

provides processed information to the management to take decision. It plays a very

important role in decision making process in an organization.

Function of MIS:

MIS reports which consist conversion ratio in which they compare passed

years walk – INS with present year walk – ins, Sales Vs Stock ratio etc.

Stock analysis report in which they analyze the age of the stock in the

particular store, and on the basis of which they give discount on saleable

stock, slow moving stock, and non moving stock. (Annexure)

(1) Saleable stocks are those stocks which are 0 to 30 days old.

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Display should complement the retailers other strategies:

 The content of the display should complement the in store environment and other marketing strategies of the retailer. If the retailer has a specific logo, the colors of the display can reflect the same color of the logo. For e.g. MacDonalds display, the clown is of the same color, red and yellow as in their logo.

 Cleanliness:

 Neat and clean arrangement is the foundation of an inviting a successful visual display. A beautiful display can be ruined by a cracked sign holder or an unclean display environment. Effective cleaning schedule of showcases and display fixtures is required.

 Change the display settings in frequent intervals:

 Changing the arrangement of the displays in regular intervals will initiate new interest about the products in the minds of the customer. By designing a plan-o-gram and activating changes frequently one can thus be a proactive retailer.

 With globalization and the retail boom, visual merchandising is growing in leaps and bounds. It is not simply concerned about decorating a store beautifully; but must also symbolize the brand keeping the target audience in mind.

(2) Slow moving stocks are those stock which are 30 to 60 days old and

which are denoted by green tag.

(3) Non moving stocks are those stock which are 60 to 90 days old are

denoted by yellow tag.

(4) Dead stocks are those stock which are above 90 days old and they are

denoted by blue tag.

SPTS(Store Performance Tracking Sheet) for finance department.

(Annexure)

(1) Number of customers coming in the store.

(2) Number of bill made.

(3) Per bill value.

(4) Conversion percentage.

(5) Individual sales performance.

(6) Stock quantity and value.

(7) Actual sale for the day.

(8) Comparison between last three year/months sales with present

years/months sales.

Quarterly incentive report and sales report for HR department. It helps to

analyze quarterly target Vs sales achieved. To give incentive for the

employees.

Handbills and SMS reports for sales promotion. In handbills Newspapers

and pamphlets etc. are used. For SMS we collect database of customers from

different stores and send them SMS through the use of bksms software.

Store score sheets.(Annexure)

AUDIT: (annexure)

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The process of evaluating the condition of stock in EBO (Exclusive Brand Outlet) and

matching the stock with the billed stock in system records. Twice in a month Stock

checks are done, in that Stocks in the system should tally with the physical stock.

Suppose physical stocks are not tally with the system & some articles are missing, then

it will be billed & the money will be deducted equally from every staff including

Manager.

Apart from that other function of audit team is to timely visit the outlets to check

following things:

Daily Morning briefing sheet

Daily Store walk

Grooming of the employees

Maintenance of card, cash bill and gift vouchers details in register on daily

basis.

Maintenance of outlet.

INFORMATION TECHNOLOGY:

It takes care of the various problems faced by the outlets in terms of computers. The

maintenance of system is done by the IT department. One more important job of the IT

department is to provide support to the MIS department by collecting daily sales report

from various outlets and making sure that it will be secure and safe by the use of certain

software such as SHOPPERS etc.

RESPONSIBILITY:

The generalized description of internship responsibilities are as follows:

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As my internship was of 6 months, so my responsibilities were divided into 3 parts

which are as follow:

For 1 st & 2 nd month as CSA(customer service associate) where my

responsibility is:

Ensuring customer delight in each interaction

Maintaining stocks at the store level.

Helping CRO in achieving their monthly targets.

Assisting the manager in the implementation of various promotional

activities

Enrolling maximum number of customers onto signet and EMG.

Display of merchandise within the counters in specified format and its

maintenance.

Daily counting of stock

Tracking individual non conversion reasons. Tracking average UCP per

item sold. (Target vs achievement).

Making the final bills of all the merchandise selected by the customer.

For this ETP software is used.

Cancellation /exchange bills: if a customer needs to exchange the

product for any reason, can be changed. The bill can also be cancelled if

a customer wants to make it on some other name.

Cash maintenance: tally the cash sales of the previous day and write its

denomination, filling the challan form and then depositing it to the bank.

Trying to solve customer complaints.

Trying to rectify customer’s queries: Like can we change the strap,

particular model is available or not, offer is there or not n etc.

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Trying to improve the sales to fulfill the targets provided by the

company. E.g. influencing/encouraging the customer to take the product

by telling its features.

Building relationship with the customers

Preparing the gift vouchers report..

Tally the stocks coming from the stock point.

Enter the stocks in the system

For 4th and 5th month:

Will be responsible for the complete Store Operations including Opening

& Closing of the Store, Preparing the Report on Daily basis. Chasing

Sales Targets, Supervising & training Store Staff, Visual Merchandising,

Security of the store, Admin & Commercial issues, Reports/ MIS,

Inventory/Stock management, Business Development.

Manages and controls the operations of the store to ensure that company

standards and expectations are consistently met.

Manages the operations of the stockroom to ensure new merchandise

gets to the sales floor in a timely manner, goods are received properly

and maintains tight control of all merchandise in stock areas.

To enter the new stocks in the system by creating new master of the

particular stocks, then our job was also to do the stock inward & outward

Prepare, manage and upgrade vendor database.

Tracking and improving operational efficiency of the merchandising

team

Prompt availability of the required SKU

Maintaining optimum stock levels, guarding against excess inventory,

review of returnable and damaged stocks

To accurately phase sales, stock, margin, markdown and intake plans and

projections for the brand by week, taking into account historical

45

performance future trends, prevailing market trends and new store

openings, and to structure the buy to deliver the required level of

profitability at minimum risk.

Ensuring that availability is maintained throughout the product's life and

that re-buys and cancellations are actioned in a timely manner.

Maintaining a balanced mix of product at all times, and to effectively

execute the agreed exit policy.

To determine the footage requirement for the department for each grade

of stores so that the optimum range can displayed while delivering the

planned returns per square foot.

Vendor management and development.

To conduct the annual review of supplier performance with QA and

buying.

To liaise with vendor base and marketing for promotional activities.

To pursue and recover all monies due from vendors as a result of

performance penalties or markdown and promotional contributions.

Development of subordinates - To ensure that the skills of all direct

reports are fully developed through a balance of training and coaching,

and to manage individual performance so that full potential can be

realised.

Budget - To manage budgeted department expenditure within agreed

levels.

Integration with internal customers (Retail, Store planning, Visual

Merchandisers) and external customers (consumer).

Regularly track Competition's activities and consumer's needs and

buying patter

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After 2 nd month my responsibilities as a Store Manager of “adidas”

Tirunelveli

To handling each and every operations in store level.

Store Operation.

Merchandising

Sales

Targets achievements

Daily activities

Creating customer base

Identifying there problems

Giving suggestions to employees under me

To learn different strategies adopted by different outlets according to

different area and items.

To learn about Store layout and display of merchandise

Process of buying the merchandise

Fixing of target

OTHER RESPONSIBILITIES:

To organize sale out of the store like in Gym, Colleges etc..

To acquire complete knowledge about the company and its products.

To understand the market, consumer behaviour and competitors behaviour.

To give necessary suggestions and feedback whenever required.

47

To find out effectiveness of selected promotional mix elements.

To suggest the company other potential targets.

Strategies Adopted

For the first week of the Project, “Observation technique” has followed by me to

understand about the product, product features, product offers, about the organization.

The various marketing strategies applied are as follows:-

1. Target Segmentation - A platform of demographic segmentation is followed by

targeting the age group 14-35 as they are large potential customers and look for

great offers.

2. Product Differentiation – Differentiated ADIDAS products by doing

comparative analysis with existing products and explaining it to customers.

3. Positioning – Positioning the product by explaining the invaluable offers

provided by ADIDAS.

Learning's:

How to deal with different types of customers?

Billing in Shopper and ETP.

Stock analysis on the basis of cluster and brand

Final evaluation of gift vouchers(GV)

Way to display the merchandise

Process of day beginning and day closing activities

Opening &daily stock (head) counting

Cancellation/ returns/exchanges billing in Shopper and ETP

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Putting the price tags

How divide the monthly target in daily basis and division of monthly and

daily target in CSA’s on the basis on there experience

How to motivate the CSA’s

Arrangement of daily meeting agenda and minutes

Analysis the causes of low sale or walk-ins in the store.

Service billing

How to do inventory control

How to maintain petty cash

Putting the order of merchandise

Putting the new stock in system

Maintain daily sales report

How to deal with different kinds of customer:

o Greeting: Eye contact, smiling, Wishing Nodding

o Making Customer Comfortable: Engagement, leading to new arrivals

or customer choice, waiting

o Understanding Requirements:

1. Buying for whom, occasion, tastes

2. Listening skills, looking for single

o Presenting: Showing Footwears & Apparels, Talking about Features and

Benefits, Taking about Unique strengths, providing value with focus on

customer

49

o Trial Closing:

1. How to trail close, checking for concerns

2. Recognizing Buying signals, Caution signals

o Handling Concerns:

1. Understanding, Agreeing, Reassuring

2. Handling standard customer objection question

o Closing &Up Selling:

1. Closing steps- checklist for billing

2. Introduce SIGNET and EMG if applicable

o Thanking And Welcoming Back

Displaying Apparel:

Regarding displaying of the apparel I come to about that we have to follow

some standards which are as follow:

In every model or design 3 pieces are displayed like small, medium & large

Small piece displayed in the front followed by Medium & Large

Do not mix up collor & without collor t-shirts

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Also do not mix up the full-sleeves & half-sleeves t-shirt

Display cotton t-shirt, pes t-shirt & clima cool t-shirts separately

Price tag should be inside the article

In the front of the display hanger the high range article should be displayed.

In the display table the high range & attractive pieces displayed which can

attract the customer attention.

And rest pieces (xl & xxl) are in the stock room

All the apparels should be displayed with equal distance from each other, so that

customer can browse easily

Apparel should not have any stains

Display should be changed after every interval of 10-12 days

Mannequins display should also change after interval of every week

DISPLAYING SHOES:-

In shoe wall there are separate category for Running(men, womens),

basketball, golf, tennis

For Men we display the general size of shoe like 7 & 8 in the display & for

Ladies 4 & 5

There are separate socks for trail

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All the high range shoes are displayed at the Eye-level because Eye-level is

the Buy level.

Before 2 months we launched Adidas wet-print test, through this we can

check the exact structure of the customer feet & according to that we can

suggest the perfect shoe to the customer. & this method is working good.

We are also giving three months warranty for any manufacturing defect for

both apparel & footwear

How to motivate the CSA’s :

While motivating the CSA’s first we to understand the objectives of motivation

Objective: To enable employees to understand the relevance of developing themselves

to enhance their performance capabilities. This also plays a key role in retaining

good employees.

Processes: A comprehensive understanding of what development means, what

processes available within, how they are administered and how the outcomes

monitored.

When we are aware about the objective of the motivation and the process which are

going to follow then identified the developments needs which is going to be

considering, which could be for example;

1. Lack of assertiveness

2. Lack of aggression in pursuing targets

3. Poor interpersonal skills

52

4. Poor grooming

5. Poor expression in communication

6. Improvements in converting walk-ins

7. Insufficient up-selling

8. Discipline

9. Low product Knowledge

Once the motivation part is over then after a month we have to assess the performance

of the employee in an objective manner against set measurable objectives. To use this

information for determining what rewards and benefits flow to the employee in

recognition of performance. It also reflects on the areas of improvement for the

employee and the action that the employee needs to take for improving on personal

performance.

Appraisal Basics: Keep the appraisal process short and simple. The objective is to get

authentic information on the actual performance of the employee.

Set a target: These could be set at the beginning of the year or when the

employee joins.

Target should be set on the following parameters.

1. Value of sales.

2. Brand wise targets.

3. Customer appreciation.

4. Personal grooming.

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5. Walk-in conversion.

Assign clear weightage for each target.

Prioritize the target on the basis of primary importance in descending order.

For example:

1. Value of sales.30%

2. Sales volumes.50%

3. Customer appreciation 10%

4. Personal grooming and discipline 10%

Keep it transparent.

1. Make the calculation and present it to the employee at the end of each month

2. Let them check and verify that the statement reflects their actual performance.

3. Review process for follow up on status KRA. We recommend Half Yearly

review and appraisal at the end of the financial year.

4. Let them seek clarification if any.

Make the task simple.

Design a simple form so that employees can calculate for themselves and can track

their own performance.

On the basis of above appraisal standards we understand what actions can be taken

for the welfare of the employees. Towards retaining employees and to give them a

feeling of belonging to the business. For this we can use the following factors:

Health

Counseling

Recognition

Motivation

Celebrations

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Sympathy

Team work

Exercise

Food & Water

Recommendations

Personal Hygiene

Workspace Clutter

Toilet Training

Smoke and Gum Free

Divide the monthly target in daily basis and division of monthly and daily target in

CSA’s on the basis on there experience: During internship period I come to know

about the deviation of monthly target in daily basis and how a retailer divide there target

in there employees. For this have to consider the following standards:

1) Number of weekdays

2) Festivals in the month

3) National Holidays in the month

4) Number of employees in the store

5) Experience of employees

How to deal with different types of customers?

Billing in Shopper and ETP.

Stock analysis on the basis of cluster and brand

Dealing the signet to the customer and final evaluation of signet

55

Final evaluation of gift vouchers(GV)

Way to display the merchandise

Process of day beginning and day closing activities

Opening &daily stock (head) counting

Cancellation/ returns/exchanges billing in super and ETP

Putting the price tags

How divide the monthly target in daily basis and division of monthly and

daily target in CSA’s on the basis on there experience

How to motivate the CSA’s.

Arrangement of daily meeting agenda and minutes

Analysis the causes of low sale or walk-ins in the store.

Service billing

How to do inventory control

How to maintain petty cash

Putting the order of merchandise

Putting the new stock in system

Maintain daily sales report

Observation :

During the process of observation my area of concern was SO (Store Operation) and

Buying & Merchandising but before going with observation I had collected the

information about Store operation and Buying & Merchandising.

Retail Operation:- Retail enable a store to function smoothly without any hindrances.

The significant areas of retail operations consist of:

Customer Services and Accommodation.

Retail selling process.

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Store Staffing and Scheduling.

Retail Floor and Shelf Management.

Store Administration and Facilities Management.

Warehousing and Supply Chain Management.

Loss Prevention.

POS/Cashiering Process.

Visual Merchandising and Displays.

In front – end retail operations, it is very important to know how the store is performing

at least on a day – to – day basis if not on an hourly basis. There are ready reckoner are

there to help in store operation called Dipstick Parameters.

Dipstick Parameters:- Dipstick parameter enables retailers to find out about the health

of specific areas of operation customers stocks space, staff/employee, finance etc. in an

instant. Some of them are:

Customer Transactions: It tells how many customers came into my store

compared to the corresponding period last year, and the conversion rate.

Customer Conversion Ratio.

Returns To Net Sales:

Transactions Per Hour

Sales Per Transaction

Hourly Customer Traffic

Stocks: In order to determine the strength of stock holding.

Average Selling Price

Average Stock Price

Stock Turnover/Inventory Turnover Rate.

Percent Inventory Carrying Costs.

Gross margin return on inventory.

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Markdown Goods Percentage.

Shrinkage to net sales

Steps to define of design a performance programme for a retail store:

Collecting and sieving information.

Selecting key performance indicators.

Studying the result

Setting goals for action.

No facility of security inside the store, e.g.- security cameras, baggage counter.

Rules and Norms are not clearly defined in stores regarding employee’s

behavior.

Distribution of authority and responsibility is not clear, nobody is clear about his

or her job.

Lack of co-ordination between staff members of the store.

CSA’s are not able to understand consumer behavior as they have very few

knowledge about it.

Displays are not rotated regularly, repetition of products are too much.

Power back up is not up to the mark because of this sale suffered badly.

The model display in the back side of the counter should be available in the

store; otherwise there should be some facility that within half an hour or within a

specific period of time we can easily make it available for the customer.

The model displayed on the wall of the store should be change at regular interval and the changing should be rotated, so that we can change the position of flat bed also.

Rights and Duties should be clearly defined between employees. Additional benefit for the customers, e g if customer makes a purchase of high

value provides them additional services.

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Customer should be informed by the technician or manager after the services. Regarding the approval of the customer to do the services ahead, message or a

call should be clearly defined.

Limitations

1. The study is limited to few Adidas store of Chennai only. But market varies

from area to area. Hence it is not applicable to all areas.

2. There are some inability and unwillingness of customers to give actual data due

to various reasons.

3. The information given by concern person may not be 100% accurate.

4. The study was made with the facts of observation done and information

available with the store..

5. It was difficult to understand the consumer behaviour of various geographical

areas.

6. It was difficult to tap the corporate since he/she located in particular outlet in the

distribution channel.

7. As we have work in two kind of situation in Chennai & small district town of

Tamilnadu, the customer choice totally different so this report may vary in

places.

SUGGESTIONS

1) The Customer Care should avoid keeping the customer on hold for a long time.

2) Provide some customer care training to the CSA’s.

3) Monthly target of them should be divided in equal part within the CSA’s and the

monthly target of the CSA’s should be divided in equal daily targets.

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4) Arrange a daily meeting and appreciate them for their performance and talk to

those CSA’s who are not able to perform well, if possible talk to them separately,

and encourage him.

5) Whatever display card is put in the store must keep that model in stock.

6) Display should be according to price.

7) Early short out the problem of CSA’s because if the employees are happy then

only they can perform their duties efficiently.

8) Rotation of the displayed items should be there, minimum on weekly basis..

9) Goal and Vision of the company should properly communicated between the

employee’s.

10) Improve the space utilization in stores to increase GMROF(Gross Margin Return

On Footage).

11) Should maintain walk - in reports. It will be done on per CSA level. It will help in

finding the conversion ratio of customer and employee productivity.

CONCLUSION

1) CSA’s are not able to understand consumer behaviour as they have very few

knowledge about it.

2) CSA’s are only concerned with there own target and not to the store target and

after achieving there individual target the became relax and not attend the

customer properly.

3) There is a lack of co-ordination between staff members of the store.

4) Distribution of authority and responsibility is not clear nobody is clear about his

or her job.

5) Rules and Norms are not clearly defined in stores regarding employee’s

behavior.

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6) CSA’s need an extra training for handling customer.

.

Finally it can be concluded that in this course of time I have acquired good knowledge

about the corporate world, its ethics, rules and regulations, its mission and vision etc.

The art of convincing customer was not so easy task to execute so intern has learnt

about customers’ behavior, how to persuade them, how to interact with them and how to

convince them to buy the product instead of competitor’s product.

Bibliography and references

1) google.com

2) wikipedia.com

3) www.adidas.com

4) Retail Management by Gibson G.Vedamani (2007) ,JAICO PUBLISHING

HOUSE,DELHI.

5) www.comfyshoemakers.com

6) www.businessweek.com

7) Adidas technogy books

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