2. Franchise is the right to use a predetermined method
for marketing products or services through outlets that
use a known name or trademark.
Franchising is not a business or an industry, but it is a
method used by businesses for the marketing and
distribution of their products or services.
3. The two parties which emerge are:
THE FRANCHISOR –
He owns the trademark/product/ service and licenses
the trademark to another party.
THE FRANCHISEE –
4. PRODUCT/TRADE NAME FRANCHISE - , the franchisee
concentrates on one manufacturer’s product, and thereby
acquires the manufacturer’s identity to some extent.
BUSINESS FORMAT FRANCHISE –entitling franchisees to
make use of a complete business package, including training,
support and the corporate name, thus enabling them to operate
their own businesses with exactly the same standards and
‘format’ as the other units in the franchised chain.
5. LOW RISK
EASE OF FINANCING & OPERATIONAL SUPPORT
GROWTH
ADVERTISING
7. The time span/duration of the agreement.
Obligations/duties of the franchisor.
Obligations/duties of the franchisee.
The territory under which the franchisee will operate.
The franchisee fee and the right to use the franchisor’s
trademark/brand/patents and signage.
The training or support that will be provided by the franchisor.
Royalties as may be payable.
Support as in terms of advertising and other promotions.
Terms of renewal and termination/cancellation policies.
8. Adidas was founded by Adolf "Adi" Dassler, in 1948. It is based in
Herzogenaurach, Germany.
Adidas Group consists of Rockport, Reebok Sportswear
Company and Golf Company (including Ashworth).
In addition to sports footwear, the company also manufactures
other products such as
Shirts
Eyewear
Bags,
Watches and other sports goods.
9. Company Name Sales Revenues
Nike $150 billion
Adidas $7.4 billion
Puma $1.5991 billion
Reebok $3.4853 billion
Sketchers $221.8 million
Saucony $133.2 million
K-Swiss $121.6 million
Asics $111.1 million
Keds $696 million
L.A Gear $580 million
Asics $465 million
10. The Adidas India is a consumer focused organization and therefore wishes to
continuously improve the quality, look, feel and image of its products.
The sportswear business organizational structures match and exceed
consumer expectations to provide them with the highest value.
The Group is committed to continuously strengthening its brands and
products to improve the competitive position.
Adidas is socially and environmentally responsible, creative and financially
rewarding for its employees and shareholders
11. Across all brands, the sportswear business Group focuses on
increasing awareness and visibility, providing clear and consistent
messaging and supporting each product at its point-of-sale.
One of its important growth drivers in latest years has been the
Group’s ability to consistently bring key innovations to the market,
create exciting products, superior functionality and attractive
designs. The Group is committed to launching at least one new
technology or technological evolution per year.
12. As sustainable revenue and operating profit growth are critical
to the Group’s success, all its brands pursue the most value-
enhancing avenues for growth, with particular emphasis on
bringing the Reebok brand in line with the Group’s profitability
standards. At the same time, the Group remains committed to
increasing returns to shareholders through above industry
average share price performance and dividends.
13. Going forward, Adidas have simplified the shape of Adidas’s
store chain, by clustering it into three different formats, namely
brand centers, core stores and factory outlets.
Brand centers, i.e. large stores carrying the full range of each of
Adidas sub-brands under one roof, are the bold and powerful
statements about their strength, breadth and depth. This format
will be kept to a limited number and only in exclusive
locations.
14. Core stores are the commercial engine for sales and profit across the Group’s retail
organization, upholding and accentuating each brand’s reputation. There will be
Adidas brand core stores, Originals core stores and Reebok core stores and,
depending on their size, they will be categorized and clustered into A, B or C.
factory outlets will facilitate the controlled sale of excess stock returned from
Adidas’s wholesale key and field accounts, franchise partners, e-commerce as well
as own-retail stores. Through improved management of regional inventory and
limited planned production, Adidas want to improve and balance Adidas’s product
offering and therefore further increase profitability.
