Final Project C_adidas Group

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    Analysis of the company

    Adidas shoes in Danish Market

    Project C

    Marketing Management

    Business Law

    Teachers:

    Lena and Sussane

    Prepared by:Binita, Ali, Anastasija, Waqar and Gurudatta (Rabi)

    Mec 2v3, Intl Marketing Management

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    Table of Content

    Introduction----------------------------------------------------------------------------------------------3Problem Formulation-----------------------------------------------------------------------------------3

    Market Analysis-----------------------------------------------------------------------------------------3

    SWOT-----------------------------------------------------------------------------------------------------4

    Consumer buying behavior-----------------------------------------------------------------------------4

    Distribution-----------------------------------------------------------------------------------------------6

    Competition----------------------------------------------------------------------------------------------7

    Segmentation strategy-----------------------------------------------------------------------------------7

    Target markets--------------------------------------------------------------------------------------------7

    Positioning------------------------------------------------------------------------------------------------8

    Marketing Mix-------------------------------------------------------------------------------------------8

    Product----------------------------------------------------------------------------------------------------8

    Price -------------------------------------------------------------------------------------------------------9

    Promotion-------------------------------------------------------------------------------------------------10

    Place-------------------------------------------------------------------------------------------------------11

    Business Law---------------------------------------------------------------------------------------------12

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    A short Introduction

    Adidas is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reeboksportswear company. Besides sports footwear, the company also produces other products such as bags, shirts,and other sports and clothing related goods. The company is the largest sportswear manufacturer in Europe andthe second largest sportswear manufacturer in the world.

    The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporatedinto Adidas's current official logo. The company revenue for 2008 was listed at 10.799 billion and the 2007

    figure was listed at 10.299 billion, or about US$15.6 billion.

    Problem Formulation

    How can Adidas shoes increase its demand and market share in Danish Market?

    Market Analysis

    Denmark's market economy features efficient markets, above average European living standards, and highamount of free trade.

    Denmark has a GDPper capita higher than that of most European countries, and 15-20% higher than that of theUnited States. Denmark is one of the most competitive economies in the world according to World EconomicForum 2008 report, IMD, and The Economist. According to World Bank Group, Denmark has the most flexiblelabor market in Europe. It is easy to hire, fire, and find a job. According to rankings by OECD, Denmark has the

    most freefinancial markets in EU-15 and also one of the most free product markets, owning to liberalisation inthe 1990s.

    Around 2.9 million residents are in the labor market. The proportion of tertiary degree holders is one of thehighest. GDP per hour worked was the 10th highest in 2006 and unemployment at 2.3 percent. Denmark has acompany tax rate of 25% and a special time limited tax regime for expatriates. Denmark is home to many multi-national companies, among them: A. P. Moller-Maersk Group, (Maersk international shipping), Danfoss(Heating & Cooling), Lego (children's toys), Bang &Olufsen (hi-fi equipment),and Carlsberg.

    The market for branded consumer goods is rapidly increasing in Denmark.Denmark is not a huge market but it isan attractive place for business. The development of Denmark into a modern market economy has gone muchfaster. A liberal and market controlled economy has open up for international competition.

    SWOT Analysis of adidas shoes in Danish market

    StrengthsAdidas is a biggest sponsor of athletics, running, basketball, soccer and more. It has strong management team,strong brand recognition and reputation. Diversity and variety in products offered on the web (footwear, apparel,

    http://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/Labour_economicshttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Product_markethttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_hour_workedhttp://en.wikipedia.org/wiki/A._P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/Danfosshttp://en.wikipedia.org/wiki/Legohttp://en.wikipedia.org/wiki/Bang_%26_Olufsenhttp://en.wikipedia.org/wiki/Carlsberg_Grouphttp://en.wikipedia.org/wiki/Carlsberg_Grouphttp://en.wikipedia.org/wiki/Bang_%26_Olufsenhttp://en.wikipedia.org/wiki/Legohttp://en.wikipedia.org/wiki/Danfosshttp://en.wikipedia.org/wiki/A._P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_hour_workedhttp://en.wikipedia.org/wiki/Product_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Labour_economicshttp://en.wikipedia.org/wiki/World_Bank_Grouphttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Market_economy
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    sporting equipment, etc.). It has strong control over its own distribution channel. In Denmark, adidas has no badreputation like child labor or environment pollution. In the Soccer industry, Adidas has a stronghold

    WeaknessesAdidas has premium prices. So everybody cannot afford its premium products. Adidas has very limited service

    in e-commerce. It is only limited to USA. Adidas has getting conflicts with its own resellers because of its directsales.It is not helping ecommerce service. Small market share in Danmark (only one shop).

    OpportunitiesAdidas by Stella McCartney is to increase female participation in atheletics. It has been collaborating withother online retailers to offer Adidas products. Adidas has possibility of outsourcing the web development and e-commerce to a third party developer.

    ThreatsNike is the biggest competitor and has strong reputation in the footwear and apparel industry. Increasing in thePrice of Raw materials is the challenges of Adidas to expand its market share. Continuing challenges inimport/export duties are also challenging for Adidas.

    Consumers Buying behavior

    Consumer segments

    The Danish climate with cold wet winters and relatively warm summers influences the footwear marketprofoundly. Different types of shoes are needed for the different seasons. Sandals for the summer months andwarm boots for the winter are needed in addition to rubber boots and shoes for the spring and autumn season.The market can be divided into the following consumer segments: Mens shoes, womens shoes, sports shoesand footwear for children.

    Most men and women have a selection of shoes fit for the different seasons as well as for different occasions,

    work, leisure, sports etc. However, one consumer segment- primarily young people - tend to prefer to wearsports shoes all year round.

    Generally speaking Danish consumers are quality-conscious when it comes to footwear. Although price is animportant aspect, cheap footwear - if of a low quality - will be difficult to sell. So that adidas should aware of it.

    Most parents place great importance on selecting footwear for their children. The design must be foot shaped andof high quality and most parents are willing to pay a very high price to ensure this. So that design phase is reallyimportant. Children will normally get a full set of footwear each year to fit their growing feet. Adidas has to bedemand derive.

    There is a segment of consumers who are very fashion and brand conscious and who are willing to pay high

    prices for the best and most fashionable design. This segment however is relatively small. Most foot-wear soldare of middle to upper price and quality. So adidas should come up with comfort, new design and modernlifestyle.

    The maintenance of footwear- for instant soling - is very expensive due to the high labour costs. Thereforepeople will often dispose of medium price/quality shoes when soling is needed, instead of spending maybe 1/3 ofthe price of a new pair of shoes on soling.

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    Danish people tend to have rather large and broad feet, and normally designs aimed at consumers elsewhere inthe world will have to be adopted or modified, not only in relation to the look but also in relation to the size, inorder to suit the market. In oder to get more market share in Danish market, adidas should come up with largeand broad feet size, specially should be focus for Danish people.

    Danish consumers make many buying decisions every day. Mostly large companies do extensive research on

    consumer buying decision, to answer questions like what kind of shoes does consumer buy, where they buy, how

    they buy, how much they buy, when they buy and why do they buy a product, for this question to reorganize the

    decision different stages needed they are, information search, and evaluation of alternatives, purchase decision

    and post purchase decision etc., The consumer passes through all five stages with shoes purchase, but in more

    routine purchases, consumers often skip or reverse some of these stages.

    The buying process starts with need recognition, where as buyer recognize the need.

    The consumers are searching the information from the various sources those are information search, personal

    source, commercial sources, public sources and experimental sources; this is also process of the buying decision

    process before purchase of the product.

    The consumers evaluate all the alternatives available to them to arrive at a brand choice. The consumer will see

    the product as a bundle of attributes with varying capacities, which satisfies his or her needs. In the evaluation

    stage, the consumer ranks all the brands and makes a purchase intention. Generally the consumer purchase

    decision is to buy the most preferred brand, when purchasing a products, consumer will think about two things,

    which can be, purchase decision and purchase intention.

    The buyers job does not end when the shoes is bought. After purchasing the shoes, the consumer will be

    satisfied or dissatisfied and will be engaged in post purchase behavior.

    CONSUMER BEHAVIOR MODELS

    Most early psychologists studied people who had psychological problems, but Maslow

    Hierarchy needs tells us about the needs of consumer behavior.

    b. Hierarchy needs of consumer behavior model

    Maslow believes that people seek to fulfill five categories of needs.

    Maslows hierarchy of needsMaslows given the hierarchy needs for consumerbehavior, before starting

    about the consumer behavior, the consumer needs are important; usually)

    Fig No. 1 (Maslow hierarchy needsmodel

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    every consumer have some hierarchy needs, they are; self actualization needs, esteem needs, belonging needs,

    safety and security needs and psychological needs .

    1.The self actualization needs: The term actualization means that the intrinsic growth of what is already in the

    organism, or more accurately, of what the organism is called self actualizationneeds.

    Esteem needs: The term esteem means that need for things that reflect on self-esteem, personal worth, social

    recognition, and accomplishment, for example one can travel in the bus, motor bike, and car respectively,

    depends on his/her financial position they can travel.

    Social needs: The social needs includes love of family or friends, for example, the boy loves his girl friend, the

    relationship between husband and wife, one child belongs to one family

    Safety needs: The safety might include living in an area away from threats. This level is more likely to be found

    in children as they have a greater need to feel safe. For example one wants to live safe and secure life in thesociety. Finally, always consumer wants to live a life, which is safe and secured.

    Physiological needs: It includes the very basic need air, warmth, food, sleep, stimulation and activity. People can

    die due to lack of biological needs and equilibrium common needs like food, water, oxygen and other common

    minimum needs are wanted for everyone to survive in the world. This is also a basic need of consumer.

    Choice Criteria

    Danish consumers have concern with quality and durability when they buy any product, especially foot wears.

    Comfort ability is also an important factor when buying shoes. Most of the consumers normally dont thinkabout price when they are looking for a branded shoe. Because, they know only branded shoes are reliable and

    long-lasting. Young consumers in Denmark like upcoming fashions and new styles and do not hesitate to buy

    new products e.g. shoes, clothes, etc.

    Leading position in markets worldwide

    As a global organization, Adidas target leading market positions in all regions where they compete. In Europe,

    where our Group is the market leader in terms of sales, our strategy is twofold. First, we continue to strengthen

    our position in the major Western European markets and strive to grow our brands through well-coordinatedefforts with key account partners. Secondly, we are capitalizing on the strong growth opportunities in the

    regions emerging markets (i.e. Eastern Europe, the Middle East and Africa).

    In North America, we see significant upside potential. As a Group, we are number two in terms of sales, but we

    believe we are currently under-represented in the North American sporting goods market. Therefore, we target

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    market share expansion via a strong, consumer-driven product offering, a diversified distribution strategy, and

    visible and engaging communication initiatives.

    DistributionAdidas is continuously refining its distribution proposition, concentrating on two areas: expanding controlledspace and improving retail relationships. Controlled space includes: own-retail business including e-commerce;mono-branded stores run by retail partners; shop-in-shops that Adidas establish with its key accounts; jointventures with retail partners; co-branded stores with sports organizations or other brands.These formats provide Adidas with a high level of brand control, as Adidas either manage the stores itself (i.e.own retail) or work closely with partners (mono-branded stores, shop-in-shops, joint ventures, co-branded stores)to ensure the appropriate product offering and presentation at the point-of-sale. Brand control helps Adidas drivesales and profitability increases and expand market position. Adidas intend to generate at least 35% of Groupsrevenues through controlled space in the coming years.

    Competition

    The competition within the Sport shoes market in Denmark is tuff. Nike holds commanding percentage of sportsfootwear market in Denmark. But Adidas is getting closer and closer to it through its new style shoes, qualityand competitive price.Nike and Adidas are two primary footwear companies in Denmark along with their competitors, Puma andPatrick who have adopted an online e-commerce strategy to increase their sales and product awareness. Mostimportantly, companies like Nike and Adidas have invested heavily into online brand building and imagedevelopment. Attaining market share is important to Adidas. In order to maximize their market share, Adidas hasplaced a great importance in developing their branding and marketing strategies on the net through webappearance and user friendly functionalities such as ease of purchase, speed, and navigation.

    Adidas segmentation strategy

    Adidas strives to be the leading sports brand in the world an ambitious yet realistic goal. One major lever to

    achieve this is the brands broad and unique product portfolio spanning from apparel and footwear for

    professional athletes to premium fashion. It allows Adidas to address multiple consumer needs, tackle market

    opportunities from various angles as well as be less affected by one-dimensional market risks. This product

    portfolio as well as Adidas commitment to excel in all relevant segments differentiates the brand from com -

    petitors and ensures solid market growth, while staying true to the brands values. Currently, the brand focuses

    on five global priorities: Football, Running, Training, Basketball and Originals.

    Target Markets

    There are four generic target marketing strategies: undifferentiated marketing, differentiated marketing, focusedmarketing and customized marketing.Adidas belongs to differentiated marketing. A differentiated target marketing strategy exploits differencebetween marketing segments by designing a specific marketing mix for each segment. One potentialdisadvantages of all differentiated compared to undifferentiated marketing strategy is the loss of cost economies.Adidas has adopted the differentiated market for their products as its products are characterized in age, genderand desire for image. Adidas is used by young adults and teenagers and for both male and female. Adidas

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    Company is oriented in large and medium-sized companies. This product of company (shoes) will be sold in thespecific target group and marketing mix will be created

    Positioning

    Successful positioning is often associated with product possessing favorable connotation in the minds ofcustomers.Claritypositioning idea should be clear in terms of both target market and differential advantage.ConsistencyAdidas must have consistent message.Credibilitythe differential advantages that are chosen must be credible in the minds of the target consumers.Quality of products will be the biggest differential advantage at the same time being credible to the consumers.Competitivenessthe differential advantage should have a competitive edge. It should offer something of valueto the consumer that the competition is failing to supply. Its their daily wearing shoes (easy to wear, easy tochoice and so on! I don know maybe fashionable???

    Marketing Mix-4 Ps

    Product

    Product standard

    To ensure product quality and consumer-safe products, all materials and product samples have to pass a rigid

    compliance process and are tested in accordance with standardised material and product testing specifications

    and procedures.

    The Adidas Group function Product Safety and Environmental Services was expanded to further strengthen theinternal infrastructure and ensure the consistent application of physical, chemical product safety and conformity

    standards across all brands of the Adidas Group. This step was taken to roll out Group-wide product safetypolicies, to increase product checks and to engage more closely with the product teams on product safety issues.

    PackagingThe packing of the Adidas products are differentiated. This is because of the conditions that are required inforeign countries such as language, legislation, culture and environment. Adidas uses local language in packingin exporting countries to make customers understand products features easily.Global sales and procurement require well-packaged products which can be transported over great distances andmust withstand high relative humidity and extreme fluctuations in temperature. The volume and dimensions ofAdidas product packaging undergo regular checks and optimization, and we always strive to useenvironmentally friendly packaging materials such as recycled paper.

    Name and logoAdidas name and logo differentiated it from its competitors. All around the world consumers recognize aidassproducts only through it beautiful logo. The 3-Stripes mark is without doubt the quintessential adidas symbol. Itwas created by the Adidas company founder, AdiDassler, and first used on footwear in 1949. Dassler created asymbol that could be immediately recognized when his footwear was used in athletic competition and associatedwith Adidas. The 3-Stripes now enjoy worldwide recognition as an adidas symbol.

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    QualityTo ensure product quality and consumer-safe products, all materials and product samples have to pass a rigidcompliance process and are tested in accordance with standardised material and product testing specificationsand procedures. The adidas Group function Product Safety and Environmental Services was expanded tofurther strengthen the internal infrastructure and ensure the consistent application of physical, chemical product

    safety and conformity standards across all brands of the adidas Group. This step was taken to roll out Group-wide product safety policies, to increase product checks and to engage more closely with the product teams onproduct safety issues.

    Price

    The pricing policy that a business chooses is often a reflection of the market at which it is aiming. The prices ofall goods will also vary over time as market conditions alter and marketing objectives change from, saylaunching a new product to maximizing profit from it. When a business does have scope to set its price, there are

    a number of pricing strategies and policies it might choose:

    Driving Premium Price PointsWe offer the vast majority of our footwear, apparel and hardware products at high- and mid-level price points.Our goal is to strengthen both our brands market position and revenues by driving continuous growth in averageselling prices and increasing profitability. In case of strong promotional activities at retail, we proactively takesteps to protect the image of the Adidas brand, and are prepared to give up short-term revenue opportunities asnecessary to preserve our long-term market position.

    Cost plus pricingThis involves calculating the cost of producing each unit of output, and then adding a mark-up for profit. Forexample, if Adidas produced 10 000 units of a shoe costing 20 000, the average cost would be 2. A 10% profit

    mark-up would mean that units would be priced for sale at 2.20 each. Retailers often use thismethod of pricing. The advantage of this method is that it is a quick and simple way of setting a selling price. Italso ensures that sales revenue will cover total costs and generate profit.

    Skimming or creamingThis pricing strategy is often used when there is little competition in a market. It involves charging a high pricefor a new product to yield a high initial profit from consumers who are willing to pay extra because the productis new and unique. As competitors enter the market, prices are reduced to encourage the market to expand. Thisstrategy is normally used in the video games market, e.g. when Playstation 2 was launched, it was the latestconsole on the market with the highest specifications on offer and new technology and so was set at a high price.However, now that the X-Box has been released and Nintendos console is being released in May,Sony will reduce their prices to expand and attract more customers to buy the product. Although this is a good

    strategy to gain high sales revenue at the start, I dont think that it will be good for the Adidas, because of currentcompetition. If we set the price of the Adidas shoes very high on its introduction stage, then customers willsimply buy alternatives such as Nike or the Puma.

    Penetrating the market.A business may set its price in order to gain a footing in a market. It involves pricing a product at a lowlevel so that retailers and consumers are encouraged to purchase the product in large quantities. I woulddefinitely use this pricing strategy for the Adidas, as it will offer customers extremely good value for money.

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    Although it is a high-risk, high-cost strategy, we have found from the questionnaire we carried out earlier in theproject, that price is a very important factor when customers are deciding which console to purchase. However,because the market that we are in is very competitive, a price war will inevitably break out amongst us, Nike andPuma for dominance in the market. Any rise in sales from low prices or price cuts may be short-lived, asrival firms slash prices in an attempt to retain their market shares. It is often said that only the consumer wins in

    a price war, but this is usually only temporarily.

    Demand oriented price settingThe price for not have to be lay down by the costs. Many companies among Adidas chose to lay down theirprices after the demand seen as relation to the target group. Adidas know they can take a high price for theirshoes when the consumers are willing to pay extra for the design and the brand. The demand oriented pricesetting can be divided into 2 variant

    Promotion

    Promotion involves providing information to consumers about products through a variety of media, andattempting to influence buying decisions by stressing certain features. Influence may becomepersuasion when firms attempt to stress product features, which may be more imaginary than real. Forexample, the image on the Adidas adverts that seem to convey the image that you can do anything with Nikeshoes. This image is also supported by the slogan Impossible Is Nothing.

    Businesses often refer to promotion above the line and below the line. However, customers are more subject topromotion above the line. Above the line promotion aims at mass markets through independent media such asTV, radio, newspapers and presses advertising. These allow a businessto reach a wide audience easily. Most advertising is carried out above the line. Below-the-line promotion refersto the use of media over which the producing firms have more control, allowing them to target their productsmore closely at particular customers. Examples include exhibitions, packaging, and in-store sales promotions.

    Adidas uses almost all kinds of promotion forms to promote their shoes in every market.

    AdvertisingImpossible is Nothing is Adidas biggest brand advertising campaign in six years. The campaign, whichintegrates television, print and outdoor advertising, point-of-sale and Internet, started in the US and have beenlaunched in Europe later. It has been developed by Adidas global advertising agency 180/TBWA. The fully -integrated communication campaign shows the rich stable of Adidas athletes past and present starting with thegreatest of all time, boxing legend Muhammad Ali, long-distance runner HaileGebrselassie, football icon DavidBeckham and NBA star Tracy McGrady, who challenge the impossible by taking risks, setting new records,changing conventions. The campaign features 22 athletes in total, from various sports and regions, showcasingadidas unrivaled broad involvement in sports and unique relationships with athletes. Adidas in Denmark need toconcentrate on their advertising in outdoor- and printed advertising.

    Mobile Marketing StrategyWe have demonstrated that the opportunity for brands to reach and influence consumers via mobile is signigicant.We concede that the mobile advertising industry is in its infancy and we agree that there are obstacles that mustbe overcome before it can become a mainstream advertising medium, but Adidas is increasing brand equitythrough mobile media now; Adidas learning fast and potentially leapfrogging its competitors. This opportunitymust however be shaped through the development of a coherent mobile marketing strategy that is fully

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    integrated with its brands primary marketing strategy and clearly supports its business objectives bydemonstrating unquestionable ROI.

    Sales promotionThe sales promotion is used with other forms of promotion to increase the sales volume of the company. In this

    way Adidas can create a clear effect of the promotion contribution in Denmark. Compared to Adidas the salespromotion activities will be events and exhibitions of their products on places where it is known that the targetgroup will be.

    BrandingThis is a way of establishing an identity for a product in order to distinguish it from the competition. Successfulbranding ads value to an item and ensure brand loyalty, e.g. people will only buy sports shoes made by Adidasdue to the history they have had in the sport shoes industry and the shoes that are exclusive to the product. Withthe slogan, Impossible is nothing. Branding the product with the company name in front make iteasier for consumers to relate the product to the company and enable products to be more readily accepted byconsumers if they already trust and are a follower of the existing brand.

    Public relationsThis attempts to communicate with groups that form a firms public. Such groups may include the government, shareholders, employees and customers. This, if used carefully, can increase the sales of the productby improving the image of the Adidas and its products. Businesses often use press conferences to attractpublicity. These might involve inviting journalists to a company presentation, where they are given information.This is an opportunity for a business to launch a new or updated product.Sponsorship is especially popular in the sporting world, with Nike and Adidas becoming well known due to theirsponsorships with sport and in particular, football and the World Cup. This type of public relation would be veryuseful for increasing awareness of our product and also in persuading the audience to buy the product. Forexample, if we attach our name Adidas to a big event that attracts a vast amount of people such as the WorldCup, the Olympic Games and so on, people might start to relate the event with the sponsor.

    PlaceShopping is a leisure activity for more and more Danish people. Especially young city-dwellers with highincomes enjoy looking through boutiques, shopping centers, and supermarkets. Brand-name products are in highfavor with consumers.This largely depends on the location and distribution of product on the marketWhen a company chose a form of distribution you have to take into considerationdifferent factors: factors in thedistribution, intern factors and customer factors.

    Selective distributionThe most used distribution strategy by Adidas in Denmark and on several of the export markets. This strategyfocuses on sale through a smaller number of chosen dealers in a particular geographical area. Adidas here takeuse of the SIS-draft and the multiband-stores

    Distributions formsThere are several of different distribution forms, all depends if the company has the production in the homecountry or in the foreign countries. As Adidas has the production in the home country it gives the opportunity toindirect distribution or direct distribution

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    Indirect distributionWith this distribution form the Danish company sells the products to other companies in Denmark. Thesecompanies overtake the products, which thereafter is sold to export markets. With this form of distribution youwill find business export, export agents the concept Piggy backing. Adidas do not take use of any of these formsof distribution.

    Direct distributionWith this distribution form you will find business imports, sales agents, dealers, own dealers, sales daughtercompanies, export co-operation and sale direct to the consumer. Adidas here take use of the dealers and salesdaughter companies1. The deals are as mentioned SIS-concept stores plus the multi brand stores. The salesdaughter companies create B1 stores on the markets and take care of the staff in these and in the SIS and themulti brand-stores are well educated inside Adidas product assortment.

    Part -Two (Danish Business Law)

    How can Adidas shoes increase its demand in Danish Market?

    The Danish practices act is the laws, which protect company against unfair competition. It also protect consumerfrom being deceive or being treated in a bad faith. It also protects trade from unfair both directly and in relationto consumer. The Adidas (Shoes) company should be aware of Danish marketing act to protect consumers right.Here are the some points which companies have to consider while doing business in Denmark.

    Misleading informationAccording to Danish Marketing Practices Act, section 3; Incorrect, misleading or unreasonably perfunctorystatements designed to influence demand for or supply of products, real property, other property, labour andservices must not be employed.(2) Subsection 1 also applies to statements that are unwarrantable when made toother traders or consumers as a result of their form or because they relate to immaterial matters.(3) Misleadingpractices similar in significance for supply and demand to those referred to in subsection 1 or equivalentpractices must not be employed insofar as they are unwarrantable when employed vis--vis other traders or

    consumers as a result of their specific form or because they relate to immaterial matters.(4) Where factualstatements are made, these must be capable of being substantiated by documentation.

    In respect to Danish Law, Adidas need to provide correct information about shoes to its costumer, so they couldbe able to know everything about product before buying the shoe. For example, Adidas should mention the rightweight, size and the material which used to make shoes in packaging. Adidas should also provide correctstatements about price, for instance before/now prices. Misleading information or wrong praising of product(which is illegal in Denmark) can increase the sale by short term but in long term company will fail to keep thatproduct in the market.

    Sales promotionAccording to section 9, A sales promotion campaign shall be presented in such a way that the terms of offer are

    clear and easily accessible to the consumer, and the value of any additional services is clearly indicated.(2) If atrader offers products or services at a particular price and has reasonable grounds for supposing that he will notbe in a position to satisfy demand in a quantity that is reasonable in relation to the offer and the scope of itsmarketing, the trader shall include a clear proviso to this effect in such marketing.

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    The Adidas Company should comply to increase its sales in Danish market by verities in products; alternativeschoose options, discount coupons and promotions, discount offers, and increase its sales retailers,decentralization. Adidas need to promote its shoes by positive sales promotion in country. Adidas can givespecial offers to its customers, which should be lawful.

    Advertising identification

    According to the Section 8, Marketing directed at children and young people shall be framed with specificreference to their natural credulity and lack of experience and critical sense, as a result of which they are readilyinfluenced and easy to impress.(2) Marketing directed at children and young people must not directly orindirectly incite them to violence, use of intoxicants (including alcohol) or other dangerous or inconsideratebehavior, nor make unwarrantable use of violence, fear or superstition in order to influence them.

    Adidas Company has not been violating the Danish marketing act. Comparative advertisements for Adidas arelawful if they meet a number of requirements.

    Guarantees

    According to section 12of the Danish marketing Act, Adidas must provide the guarantee which should clearlyinform the consumer about products fact, especially what the guarantee covers and for how long it valid. Adidasis providing 1 year guarantee on all products to it customers in Denmark. If product is defective during thisperiod, Adidas liable to give money back or replace the product.

    Draws and prize competitions

    According to section 11, No attempt may be made to promote the sale of products or services by means ofpossible winnings through participation in a draw, prize competition or other form of arrangement whoseoutcome depends wholly or partly on chance, if participation depends on a purchase.(2) Subsection 1 does notapply if the amount of the individual prize and the overall winnings value is within limits laid down by theMinister for Family and Consumer Affairs. Such amount limits may be determined by product and recipienttypes.(3) The publisher of a periodical may arrange draws for the distribution of winnings in connection with thesolving of prize competitions.

    Adidas should prompt its sales through draws and prize competitions.

    Conclusion

    As a global organization, Adidas target leading market positions in all regions where they compete. In Denmark,where Nike is the market leader in terms of sales, its strategy is twofold. First, we continue to strengthen ourposition in the Danish markets and strive to grow our brands through well-coordinated efforts with key account

    partners. Secondly, Adidas is capitalizing on the strong growth opportunities in the regions emerging markets.Because of the tuff competition from the Nike and Puma, Adidas has to replace their strategy. They are nowfocusing on making new style shoes, characterize of attractive design and competitive price.

    Nike is the market leader in sports shoes in Denmark. As we know in quality Adidas is not behind to itscompetitors. Nike is spending more money on promotion than any other company. Adidas should also increaseits advertisement budget to compete with its major competitor to become market leader in Denmark.

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    On the other hand Adidas can increase the demand and profit of the Company by doing effective marketing inDanish market while obeying Danish business Law.

    References:

    Principles and practice of marketing (David Jobber)

    An Introduction to Danish Law (Ana, Ulla, Leif)

    Marketing management (a relationship approach) (Svend Hollensen)

    www.adidas.com/www.adidas.dk

    www.google.com

    www.forburg.dk/english

    www.wikipedia.com

    www.123helpme.com

    www.onlinemarketing.com

    http://www.adidas.com/http://www.adidas.com/http://www.adidas.dk/http://www.adidas.dk/http://www.adidas.dk/http://www.google.com/http://www.google.com/http://www.forburg.dk/englishhttp://www.forburg.dk/englishhttp://www.wikipedia.com/http://www.wikipedia.com/http://www.123helpme.com/http://www.123helpme.com/http://www.onlinemarketing.com/http://www.onlinemarketing.com/http://www.onlinemarketing.com/http://www.123helpme.com/http://www.wikipedia.com/http://www.forburg.dk/englishhttp://www.google.com/http://www.adidas.dk/http://www.adidas.com/