Da Nang University of Economics Sunderland University Degree Programme

BUSINESS ENVIRONMENT REPORT FOR ADIDAS GROUP

By: Truong Hong Son (Andrew) Nguyen Van Long (Eric) SUD- 11

July, 2012 Da Nang

Table of Contents
I. Introduction ......................................................................................................................... 9 1. Company background ...................................................................................................... 9 2. Vision ............................................................................................................................... 9 3. Mission ............................................................................................................................. 9 4. Objectives ......................................................................................................................... 9 5. Products .......................................................................................................................... 10 II. Internal Business Environment ......................................................................................... 11 1. Organization Structure ................................................................................................... 11 2. Employees ...................................................................................................................... 14 3. Stakeholders ................................................................................................................... 15 III. External Business Environment .................................................................................... 16 1. Suppliers......................................................................................................................... 16 2. Customers....................................................................................................................... 17 a. Customer Structure .................................................................................................... 17 b. Consumers ................................................................................................................... 17 IV. Inputs and Outputs ........................................................................................................ 19 1. Inputs .............................................................................................................................. 19 a. Raw materials ............................................................................................................ 19 b. Employees ................................................................................................................. 20 c. Technology ................................................................................................................ 20 2. Outputs ........................................................................................................................... 23 a. Products ..................................................................................................................... 23 b. Community Involvement ........................................................................................... 23 c. Shareholders .............................................................................................................. 23 V. Research for the company in Vietnam .............................................................................. 24 1. Raw materials and Labour ............................................................................................. 24 2. Technology..................................................................................................................... 24 VI. Manufacturing process ................................................................................................. 25 VII. Marketing strategies and Recommendations ............................................................... 27 REFERENCES......................................................................................................................... 28 APENDICES ............................................................................................................................ 30 Appendix 1 ............................................................................................................................. 30 Appendix 2 ............................................................................................................................. 31

I.

Introduction

1. Company background
Our Group is one of the global leaders in the sporting goods industry, offering a broad range of footwear, apparel and hardware for sport and lifestyle. Our brands are renowned for their innovation and heritage and include household names such as adidas, Reebok, TaylorMade-adidas Golf, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany, our Group employs more than 46,000 people across the globe and generated sales of 13.3 billion in 2011. (The factsheet is shown on appendix 1)

2. Vision
We are striving to be the global leader in the sporting goods industry and this demands that we return strong financial results. But leadership is not only about results, it is also about how success is achieved. We are accountable for the way we do business. In particular, we accept responsibility for the way our products are manufactured by our suppliers. By our actions we can and should improve our social and environmental impact.

3. Mission
The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position. We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. We are consumer focused and therefore we continuously improve the quality, look, feel and image of our products and our organisational structures to match and exceed consumer expectations and to provide them with the highest value. We are a global organisation that is socially and environmentally responsible, that embraces creativity and diversity and is financially rewarding for our employees and shareholders. We are dedicated to consistently delivering outstanding financial results.

4. Objectives
Our goal as a Group is to lead the sporting goods industry with brands built upon a passion for sports and a sporting lifestyle. Inspired by our heritage, we know that a profound understanding of the consumer and customer is essential to achieving this goal. To anticipate and respond to their needs, we continuously strive to create a culture of innovation, challenging ourselves to break with convention and embrace change. By harnessing this culture, we push the boundaries of products, services and processes to strengthen our competitiveness and maximise the Groups operational and financial performance. This, in turn, will drive long-term value creation for our shareholders.

5. Products
Adidas and Reebok branded products include footwear, apparel and accessories, such as bags and balls. TaylorMade-adidas Golf includes the three brands TaylorMade, adidas Golf and Ashworth. TaylorMade designs, develops and assembles or manufactures highperformance golf clubs, balls and accessories. adidas Golf branded products include footwear, apparel and accessories. Ashworth designs and distributes mens and womens lifestyle sportswear. Rockport predominantly designs and markets leather footwear for men and women. Reebok-CCM Hockey designs, produces and markets hockey equipment such as sticks and skates as well as apparel under the brand names Reebok Hockey and CCM Hockey. ( The group brands is shown on appendix 2)

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II.

Internal Business Environment

Executive Board

1. Organization Structure
Our Executive Board is composed of four members who reflect the diversity and internationality of the Group. Each member is responsible for a major business area within the Group.

Executive Board

Herbert Hainer - CEO

Glenn S. Bennett - Global Operations

Robin J. Stalker - Finance

Erich Stamminger - Global Brands

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Supervisory Board Supervisory Board Sabine Bauer* (Deputy Chairwoman) Dieter Hauenstein*

Igor Landau (Chairman) Willi Schwerdtle (Deputy Chairman) Dr. Wolfgang Jger*

Dr. Stefan Jentzsch

Herbert Kauffmann

Roland Nosko*

Alexander Popov

Hans Ruprecht*

Heidi ThalerVeh*

Christian Tourres

(*) Employee representative

The Supervisory Board of adidas AG - in accordance with the German Co-Determination Act (Mitbestimmungsgesetz - MitBestG) is composed of twelve members, of which six members are elected by the Annual General Meeting and six members are elected by the employees. The core functions of the Supervisory Board include the appointment and dismissal of Executive Board members, the supervision and consultancy of the Executive Board, the approval of the financial statements as well as the authorisation of important operative planning and corporate decisions. The term in office of all members of the Supervisory Board started with the end of the Annual General Meeting of adidas AG on May 7, 2009. By rotation, the next Supervisory Board elections will be held in 2014.

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Supervisory Board Committees

In order to handle complex tasks and to increase efficiency of its work, our Supervisory Board has formed five permanent expert committees.
Supervisory Board Committees

Steering Committee Igor Landau (Chairman) Sabine Bauer* Willi Schwerdtle

General Committee Igor Landau (Chairman) Sabine Bauer* Roland Nosko* Willi Schwerdtle Mediation Committee Igor Landau Sabine Bauer* Willi Schwerdtle Heidi Thaler-Veh* Committee for Real Estate Projects Herbert Kauffmann (Chairman) Dr. Wolfgang Jger* Dr. Stefan Jentzsch

Audit Committee Herbert Kauffmann (Chairman) Dr. Wolfgang Jger* Dr. Stefan Jentzsch Hans Ruprecht* Nomination Committee Igor Landau (Chairman) Willi Schwerdtle Christian Tourres

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2. Employees
We know that our people are crucial to our success. Becoming the global leader in the sporting goods industry depends on the potential, dedication, knowledge and performance of our employees and the excellence of our leaders. Therefore, we foster a corporate culture based on our values of performance, passion, integrity and diversity as we are convinced this is crucial to stimulate innovation, team spirit and engagement. We aim to continuously develop our employees and make opportunities for career progression transparent. Our performance culture is based on strong leadership where achievement gets rewarded. We have a set of Labour Rights Principles we abide by as an employer and similarly we expect our more than 46,000 employees to adhere to the Employee Code of Conduct. We aim to make the workplace safe for our employees and we encourage them to share their views and participate in decision-making through our Works Councils.

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3. Stakeholders
Our stakeholders are those people or organisations who affect, or are affected by, our operations. Companies do not operate in isolation from society and our stakeholders have a legitimate interest in the way we do business. They are a diverse group and include the following:

Employees of the adidas Group. Authorisers: government, trade associations, shareholders, Board of Directors. Business partners: unions, suppliers, service providers. Workers in our suppliers factories. Opinion-formers: journalists, community members, special interest groups. Customers: professional sports people, distributors, retailers, consumer. Peers: other multinationals, consumer goods companies and brands. WAYS WE ENGAGE

Whenever we are approached by our stakeholders, our policy is clear: we actively engage, we listen, we seek to understand their ideas and concerns, and where it is within our ability, we act. We engage with our stakeholders in a number of ways:

Formal stakeholder consultation meetings (called stakeholder dialogues) with our industry peers, with workers, union representatives, non-governmental organisations (NGOs) and our business partners. Reports of stakeholder dialogue meetings can be downloaded from our corporate website. Meetings with socially responsible investment (SRI) analysts. With our employees through internal reporting and induction or orientation programmes. Responding to enquiries from consumers, interest groups and the media. Collaborating with other brands in joint initiatives or business forums. Outreach to graduates and the academic community.

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III.

External Business Environment

1. Suppliers
Workers in our suppliers factories play a central role in our programme. It was concern for their working conditions and wellbeing that led us to write our Workplace Standards. Our suppliers must also safeguard their workers health and safety and ensure environmentally sound factory operations. To explain how we expect our suppliers to live up to our Standards, we have produced a number of supporting guidelines that further define expectations for fair, healthy and safe workplace conditions. Our supply chain is large, multi-tiered and varied. We have a detailed approach to managing the relationships with our suppliers and we continue to develop approaches for engaging suppliers who are part of indirect sourcing models. Monitoring compliance is carried out by the adidas Groups SEA staff and commissioned third party experts while independent auditors verify compliance or evaluate our Workplace Standards programmatic activities. We are committed to facilitating workplace improvements and work with others to achieve this, so we continue to invest in training our suppliers and reaching out to stakeholders and third party service providers. We have a process for enforcing compliance with our Standards and an innovative system for rating suppliers. This rating then informs the Sourcing teams decision about whether we continue the business relationship with that supplier.

TYPES OF SUPPLIERS Main suppliers: They have a direct contractual relationship with the adidas Group for the supply of products, whether for export or domestic market consumption. Subcontractors: These are factories that have been subcontracted by our suppliers to perform manufacturing operations the main suppliers are not capable of doing in their own facility. Material and other service providers: These suppliers may not have a direct business relationship with the adidas Group, but supply goods and services to our main suppliers. Licensees: Independent companies which manage the design, production and distribution of specific products, under license to the adidas Group. In 2011, the adidas Group worked with 44 licensees whose suppliers sourced products from 269 factories in 45 countries. Agents: Independent companies that act as intermediaries to source product manufacturing, manage the manufacturing processes, and sell finished products to the Group.

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2. Customers
a. Customer Structure

Customers

Professional Sports People

Distributors

Retailers

Consumers

b. Consumers
b.1. Adidas the performance brand and multi-sport specialist

Adidas mission is to be the leading sports brand in the world. 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, exploit market opportunities from various angles as well as be less affected by onedimensional market risks. adidas commitment to product innovation and its rich heritage differentiates the brand from competitors and provides a solid platform for future growth. Adidas Sport Performance play to win The target consumers of the sub-brand are clearly those consumers who call themselves athletes, are active in sport, or simply are inspired by and love sport. While adidas has a pivotal strength with the 20- to 29-year-olds, a clear focus of the brand is on strengthening its resonance with the high school athlete and 14- to 19-year-olds. Adidas Sport Style - style your life Adidas Sport Style houses two groups. The Originals Group is the authentic, iconic sportswear label for the street and its message is Celebrate Originality. With a holistic offering in products and communications, adidas Originals is primarily focusing on 16- to 24year-old consumers, male and female, from all walks of life. The Fashion Group is defined as the future of Sportswear and includes the labels Y-3, Porsche Design Sport, adidas SLVR and adidas NEO. Though these four labels adidas brings authentic sportswear to the full spectrum of lifestyle consumers.
b.2. Reebok

In 2011, Reebok continued to gain momentum with its strategy of leading in fitness through its premium sport and lifestyle offering. Reeboks target consumer is one who sees staying in shape as a way to lead a healthy lifestyle and have fun. In the sports business, they are the 25+ year-olds who value style with performance. In Classics, they are 21+ and see athletic-inspired footwear and apparel as a staple in their wardrobe.
b.3. TaylorMade-adidas Golf

Golfers of all levels are influenced by what equipment the best professional players in the world play with and wear. Hence, TaylorMade-adidas Golfs leadership and presence on the

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worlds major professional golf tours is imperative to increasing brand exposure and traction among consumers. Adidas Golf: setting new standards in high-performance footwear and apparel Adidas Golf develops high-performance golf footwear and apparel for active, serious, athletic-minded golfers seeking products to elevate their game. Ashworth: focus on performance fabrics and Tour presence Ashworth is an authentic golf apparel brand powerful name recognition among true, authentic golfers that moves effortlessly from the golf course to the clubhouse and beyond. b.4. Rockport Building on four decades of engineering expertise and a commitment to innovation, Rockport designs and markets dress, casual and outdoor leather footwear that uses performance technology to make style comfortable for the metropolitan consumer.
b.5. Reebok-CCM Hockey

Reebok-CCM Hockey is one of the worlds largest designers, manufacturers and marketers of ice hockey equipment and related apparel under two of the most recognised ice hockey brand names: Reebok Hockey and CCM. Reebok-CCM Hockey equips more professional hockey players than any other company, including NHL superstars such as Sidney Crosby and Pavel Datsyuck. Reebok-CCM Hockey is also the official outfitter of high-profile leagues such as the NHL as well as several NCAA and national teams. ReebokCCM Hockeys strategy is to increase market share by leveraging its multi-brand approach to speak to different consumer groups, supported by its dedication to innovate for the leading athletes in the sport.

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IV.

Inputs and Outputs

1. Inputs
a. Raw materials

Material
Leathers Natural leather PU-coated leather Polymers (Plastics) EVA materials Rubber materials TPU materials Nylon / pebax materials TPE / TPR materials Latex Other polymers Blown materials (e.g. PU-foam) Composite materials Synthetics PU-Synthetics Rubber synthetics Textiles (Fibers) Polyester textiles PA textiles (e.g. nylon) Polyacrylnitrile textiles Natural textiles Blended textiles (e.g. PES/cotton) Size labels

Material
Miscellaneous Cotton laces PA or PES laces Laces PES / cotton Laces nylon / cotton Sockliner EVA foam Sockliner rubber foam Cellulose / wood (e.g. insole material) Paper tissue / out cartons / box / QC labels / hangtags / wood QC labels / hangtags /wood Threads Inks, prints, repair colours All metal parts Applied surface coatings*

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b. Employees

Our people are crucial to our success. We strive to create a working environment that promotes team spirit, passion, engagement and achievement. We promote a performance culture based on strong leadership and therefore link employee compensation to Group and individual achievements. We aim to continuously develop our employees with opportunities for career progression, while upholding a culture that celebrates diversity and encourages global mobility. We also know how important it is to continue to attract and recruit new people to the adidas Group. In this so-called war for talent, it is important that we become a world-class recruiter, and this ambition has led us to launch innovative programmes to raise our profile with potential employees. We aim to create a stimulating and attractive work environment as we strive to be a Top 10 employer of choice in the key markets in which we operate.
c. Technology c.1. Adidas

The major Research and Development innovations for the adidas brand were created and aligned to support and strengthen its five key Sport Performance attributes: i. faster ii. smarter iii. stronger iv. cooler v. natural The faster attribute became a reality through the evolution of the ultra-lightweight adizero family of products. In running, the adizero Prime, the lightest commercial sprint spike ever created, was worn by Yohan Blake and helped him become the World 100m Champion at the 2011 IAAF World Championships. In the basketball category, the adizero Crazy Light, the lightest shoe in basketball, and the adizero Rose, enjoyed considerable commercial success. This ultra-lightweight shoe was built to help players to be faster, jump higher and perform better on the court. In 2011, the lightest and fastest football boot also became the smartest in the game, with the introduction of the adizero miCoach football boot. Utilising the miCoach Speed_Cell technology in the sole of the boot, it is the ultimate digital training tool, allowing users to track and upload key performance data and to compare and share stats via the miCoach football app. For stronger, the adiPower Howard basketball shoe Dwight Howards signature shoe provides outstanding power and reinforcement required for hard lateral and rotation movements. This is made possible through the Sprintskin upper technology combined with the Z-torsion system. In 2011, adidas launched the adipure Trainer, the first barefoot training shoe designed specifically for the gym. This shoe promotes pure and natural movement by harnessing the bodys natural mechanics, activating and strengthening muscles, building balance and promoting dexterity. The adidas Terrex Feather jacket, featuring Gore-Tex pro shell materials, was engineered for endurance in extreme conditions, while providing excellent waterproofness, breathability performance and lightweight packability. The adidas Tango 12 is the eleventh official match ball produced by adidas for
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the UEFA EURO tournament. It is the most tested ball adidas has ever produced and exceeded all FIFA approved standards for an official match ball. Apart from quantitative lab testing, the ball also underwent rigorous player testing which was conducted across eight countries, using players, federations and clubs from both elite and grassroots football.
c.2. Reebok

Reebok expanded its toning offering with the introduction of EasyTone, SlimTone and SimplyTone. Each toning platform is designed to be softer and less stable than conventional shoes, conceived to mimic the effect of walking on a soft beach. Reebok expanded the highly successful ZigTech technology platform, which features a unique zig-shaped lightweight foam sole that is designed to absorb the impact of heel strike and sends a wave of energy along the length of the shoe. A lower-profile, firmer version of ZigTech called ZigNano was also introduced in 2011. In addition, Reebok introduced a new technology pillar called RealFlex, which provides a point of difference in the emerging lightweight/barefoot running segment. Featuring 76 sensors on the bottom unit, it is designed to naturally flex to give a barefoot/natural feel while offering more protection by virtue of the geometric shape and height of the nodes as well as the proprietary foam used.
c.3. TaylorMade-adidas Golf

This driver incorporates new Adjustable Sole Plate technology into TaylorMades proven Flight Control Technology and Movable Weight Technology to create the ultimate golf driver experience. The Burner SuperFast 2.0 driver, also launched in 2011, is lighter, faster and longer than the previous generation thanks to lighter components and better aerodynamics. With their stand-out white colour finish, both lines of driver, the R11 and the SuperFast, were retail hits in 2011. Their striking appearance, which enhances visual perception by making the clubhead appear larger, helps improve alignment, while also reducing hot spots. This unique and new finish combined with breakthrough technology contributed to TaylorMade capturing over 40% of the U.S. metalwoods market share in March a month after their launch, and they went on to maintain this early success all year long. Following the success in the driver line, the R11 irons were launched in September and also achieved strong retail demand. The R11 iron, featuring a highly visible red Precision Weighting System in the back of the clubhead, helps users to achieve precise swing weight without modifying the position of centre of gravity, which controls ball flight. Capitalising on the success of the Corza Ghost putter, the Ghost Spider putter and Ghost Series putters were launched in 2011, also featuring signature white colour finishes and delivering the same visual benefits as those in the driver lines.
c.4. Rockport

In 2011, R&D efforts concentrated on making shoes more walkable and this was achieved by extending Rockports innovative truWalk architecture into dress, casual and rugged casual shoe products. This included DresSports shoes, making them some of the most lightweight, walkable shoes in the industry. The truWalk architecture works with the foots natural motion, resulting in a more comfortable, energised stride. Using adiPrene technology by adidas, truWalk enables a soft heel-strike, transitioning to a smooth roll through the arch, and finishing with a forefoot flex for an energised push-off. On the womens side, R&D efforts concentrated on creating athletic-inspired comfort in stylish business-oriented highheel silhouettes. The Janae collection was launched in 2011, with pumps featuring NanoGlide

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lining, adiPrene technology, and thick-latex arch support for extra cushioning, resulting in a more walkable shoe for women.
c.5. Reebok-CCM Hockey

CCM launches were headlined by the roll-out of the remaining U+ Skate line offering, following the launch of the flagship U+ Crazy Light in the fourth quarter of 2010. The new U+ line offers market-leading heat customisation and fit at all price points. The U+ Crazy Light II stick continued to push the performance boundaries with its lightweight aerial grade carbon construction and new sweet spot technology. Reebok Hockey launch highlights were the 11K ReeFit helmet and the A.i 9 composite stick. The 11K helmet provides players with a unique 5-point safety system based on the fact that the helmet that fits the best, protects the best. The A.i 9 stick driven by the needs of elite professional players offers the power player a unique Power Taper ratio for ultimate energy transfer from the player to the stick.

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2. Outputs
a. Products

adidas Footwear, apparel, accessories

Reebok Footwear, apparel and accessories

TaylorMadeadidas Golf Metalwoods, irons putters, golf balls, footwear, apparel and accessories

Rockport Dress, casual and outdoor footwear, apparel and accessories

Reebok-CCM Hockey Hockey equipment and apparel

b. Community Involvement

The adidas Group has been actively supporting communities for many years. Our commitment and strategy is rooted in the Groups core value Integrity, expressing that we are honest, open, ethical and fair. People trust us to adhere to our word. This value has become visible through various programmes like the ongoing support from brand adidas through its corporate volunteering programmes managed by the Adi Dassler Fund, Reebok's track record in supporting human rights groups around the world or TaylorMade-adidas Golf's long-standing programme supporting golf charities. All our programmes are built on three complementary pillars community involvement, employee involvement and corporate giving determined by local cultural, economic and social factors. At brand level, our programmes are aligned to the brands missions. Group programmes are additional programmes led by our Social and Environment Affairs team. They include activities at Group headquarters, relief operations and projects in suppliers countries.
c. Shareholders

Based on our share register, we estimate that adidas AG currently has around 55,000 shareholders. In our latest ownership analysis conducted in February 2012, we identified 90% of our shares outstanding. Shareholdings in the North American market account for 37% of our total shares outstanding. Identified German institutional investors hold 10% of shares outstanding. The shareholdings in the rest of Europe excluding Germany amount to 33%, while 7% of institutional shareholders were identified in other regions of the world. adidas Group Management, which comprises current members of the Executive and Supervisory Boards, holds 2% in total. Undisclosed holdings, which also include private investors, account for the remaining 11%.

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V.

Research for the company in Vietnam

1. Raw materials and Labour

First, having a long-term plan may be one year, or 2-3 years of production and output markets for products, including a plan to purchase raw materials and labor recruitment to produce the product. In this plan, such a year to produce one million pairs of shoes buy X it should be part of materials in the country, partly to import more, and has a list of suppliers of materials and (A portion of his purchase, he bought part B). And to produce that kind of shoes should hire much more labor. Thus, most importantly, plan table and this table have done very well with the advice of experts. Products are produced on time to ensure proper quality and meet the sales contract was signed.

2. Technology
First when establish the company, made a technical survey report with consultant for what the factory need which equipments, and make the spending plan for equipment items as in the report. Compare with budget, see the company has more budgets, searching and buying the best equipment in the world for the company. The technology staff has been trained and updated regularly to operate equipments the best. Monthly and quarterly has a meeting with all department staffs and listening their reports and opinions. Having contact with consultants, suppliers, and others same factories to get their experiences. Products to be sold out very much and many consumers choose. State associations are recognized as high quality products.

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VI.

Manufacturing process
Product Creation
Raw Material Extraction and Processing

Innovation

Design

Development

Manufacturing

Packaging and Distribution

Product Use

End-of-life

Research & Development an integral part of the product creation process

R&D within the adidas Group follows a decentralised approach. However, fundamental research as well as expertise and competencies in sustainable product creation are shared across the Group. In line with their strategic and long-term visions and distinctive positioning, each brand runs its own research, design and development activities. These teams generally have either a category or a technology focus. R&D is closely integrated with the sourcing, design and product marketing functions. At the beginning of the product creation process, marketing defines a development priority, which may also include certain sustainability targets. This is derived on a case-by-case basis from a combination of consumer research and feedback, competition analysis and own product testing. Independently from specific development requests, our innovation teams also analyse new materials, production processes or scientific research often even from other industries to increase the exchange and scope of idea generation. The sourcing team, together with the
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innovation and material teams within product development, work closely with our suppliers to identify innovative materials as well as integrate sustainability, cost and production process aspects into the development phase. Once conceptualised, new technologies are engineered using state-of-the-art systems. Extensive virtual prototype testing and engineering loops are carried out on each technology, which promotes faster development phases as well as improved concept and quality, while simultaneously reducing physical material and resource requirements. Once a new technology is deemed viable, it is produced as a physical sample. These are then comprehensively tested by a broad range of users including top athletes. Only when these comprehensive tests have been successful, are these technologies handed over to product marketing, which commercialises the technology to a final product.

Initiatives to further streamline product creation process

We aim at improving our ability to adapt to changing consumer preferences more quickly, flexibly and efficiently. We achieve this by facilitating the direct interaction with and involvement of our suppliers in product creation, quality control, product testing and commercialisation. In 2011, we completed our Fast and Lean Creation programme which saw the implementation of direct development processes for footwear and apparel. In addition, we also made further progress on strengthening the cross-functional collaboration between marketing, design and our development teams early in the creation process. The resulting improved and closer interaction reduces the amount of costly and time-consuming product changes in the latter stages of the development process.

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VII. Marketing strategies and Recommendations

Signing contracts to famous athletes, famous clubs, national teams and sporting events. Famous athletes, clubs and national teams have a lot of fans. Company's brand will be associated with interest to fans. They will want to use products that their idols use. In sporting events, with very large numbers of spectator, so the image of the company will be spread widely. Signing contracts to famous artists. Famous singers, actors have a large and powerful fan. Their prestige will associate with the prestige of the product. The customer will not hesitate to buy the products that their idols are using. Advertising media such as internet, social network, television, newspapers, and magazinesBillions of people will know the companys products because of strong pervasion of media. Organizing contests to find out about sporting products for everyone to join: finding out products strong points, use the product to conquer the challengeThe winner will receive that product and maybe the added bonus. The program can invite more guest of honour who is famous in that sport in order to increase the attractiveness of the competition. Organizing contests to find out the representative face for fashion brands. Contestants will put on their costumes, shoes, accessories to take a photograph. Then the image will be uploading on the internet for people to vote for their favorite contestants. The vote can be conducted on the social network facebook, the image get the most like will win the prize. Therefore, the contestants will try to call friends on facebook support for them, and those friends continue calling more other people to vote. These things will make the number of people known about the competition increase quickly. Many people will know the company's products while the company does not have to pay advertising costs.

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REFERENCES
Adidas Group (no date) At A Glance 2011 [online], [cited 18st June 2012]. <http://www.adidasgroup.com/en/investorrelations/assets/pdf/factsheet/adidas_Group_Bookle t_2011_En.pdf> Adidas Group (March 7th, 2011) the adidas Group [online], [cited 18st June 2012]. http://www.adidas group.com/en/ourgroup/values/default.aspx Adidas Group (March 7th, 2011) the adidas Group [online], [cited 24st June 2012]. <http://www.adidas group.com/en/ourgroup/strategy/default.aspx> Adidas Group (March 7th, 2011) the adidas Group [online], [cited 18st June 2012]. <http://www.adidasgroup.com/en/sustainability/Our_Programme/Our_business_ profile/default.aspx> Adidas Group (July 2nd, 2012) the adidas Group [online], [cited 18st June 2012]. <http://www.adidas group.com/en/ourgroup/supervisory_board/default.aspx> Adidas Group (April 13th, 2012) the adidas Group [online], [cited 20st June 2012]. <http://www.adidas group.com/en/ourgroup/supervisory_board/committees/default.aspx> Adidas Group (April 13th, 2012) the adidas Group [online], [cited 20st June 2012]. <http://www.adidas group.com/en/sustainability/Stakeholders/default.aspx> Adidas Group (July 2nd, 2012) the adidas Group [online], [cited 24st June 2012]. <http://www.adidas group.com/en/sustainability/Suppliers/default.aspx> Adidas Group (April 13th, 2012) the adidas Group [online], [cited 24st June 2012]. <http://www.adidas group.com/en/sustainability/Suppliers/Supply_chain_structure/default.aspx> Adidas Group (April 13th, 2012) the adidas Group [online], [cited 24st June 2012]. <http://www.adidas group.com/en/sustainability/Stakeholders/default.aspx> Adidas Group (July 4th, 2012) the adidas Group [online], [cited 25st June 2012]. <http://www.adidas group.com/en/ourgroup/brands/TaylorMade.aspx> Adidas Group (July 4th, 2012) the adidas Group [online], [cited 26st June 2012]. <http://www.adidas group.com/en/ourgroup/brands/reebok.aspx> Adidas Group (no date) the adidas Group [online], [cited 26st June 2012]. <http://adidasgroup.corporate-publications.com/2011/gb/en/group-management-report-ourgroup/other-businesses-strategy/reebok-ccm-hockey-strategy.html> Adidas Group (September 1st, 2011) the adidas Group Policy for the Control and Monitoring of Hazardous Substances [online], [cited 26th June 2012].
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<http://www.adidas group.com/en/sustainability/assets/Guidelines/A01_Sept_2011.pdf> Adidas Group (April 13rd, 2012) the adidas Group [online], [cited 27st June 2012]. <http://www.adidasgroup.com/en/sustainability/Our_Programme/Our_sustainability_strategy/ default.aspx> Adidas Group (March 7th, 2012) the adidas Group [onilne], [cited 27st June 2012]. <http://www.adidas group.com/en/ourgroup/our_business/default.aspx> Adidas Group (April 13th, 2012) the adidas Group [online], [cited 27th June 2012]. <http://www.adidas group.com/en/sustainability/Community_involvement/default.aspx> Adidas Group (no date) the adidas Group [online], [cited 28th June 2012]. <http://www.adidas group.com/en/investorrelations/share/structure/default.aspx> Adidas Group (April 13th, 2012) the adidas Group [online], [cited 28th June 2012]. <http://www.adidas group.com/en/sustainability/Environment/Product_creation/default.aspx> Adidas Group (no date) the adidas Group [online], [cited 28th June 2012]. <http://adidasgroup.corporate-publications.com/2011/gb/en/group-management-report-ourgroup/research-and-development.html>

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APENDICES
Appendix 1
FACTSHEET ADIDAS GROUP Name Chairman & CEO Description adidas AG Herbert Hainer The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. With brands such as adidas, Reebok, TaylorMade, CCM Hockey and Rockport in its portfolio, the adidas Group offers a broad range of products. As a global player the adidas Group is represented in major markets all over the world. The Group comprises around 170 subsidiaries with headquarters in Herzogenaurach, Germany. In 1949 adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das' from Dassler. 1.1. 31.12. adidas Group 2011 Net sales: 13.3 billion Net income: 671 million adidas AGs share is listed on the "Deutsche Brse" stock exchange in Frankfurt. The stock is part of the DAX-30 index, which includes only the largest German companies listed. 46,824 at the end of 20101 World of Sports Adi-Dassler-Str. 1 91074 Herzogenaurach Germany www.adidas-Group.com http://blog.adidas-group.com

Established

Business Year Financials

Share

Employees Headquarters

Internet

30

Appendix 2
GROUP BRANDS

31