Marketing Project 1m354f

yae kim

adidas: eco-friendly line 1

the brand with the 3 stripes • product

– trendy eco-friendly adidas shoes – recycling old shoes to make fashionable

• what is adidas?

– for 80 years, adidas has been providing, not only national, but global consumers state-of-the-art footwear. – today, the adidas group is a global leader in the sporting goods industry and offers a broad portfolio of products.1 – our strategy is simple: continuously strengthen our brands and products to improve our competitive position and financial performance.1 adidas originals

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our mission • in today’s society, people are looking to be more fit and healthy but still stylish. • to the economy, a more cost efficient solution is most desired. • adidas must take advantage of this problem and turn it into an opportunity. • with advanced technology and recycled materials, adidas can create a new line of products that hold true to the distinct adidas style in a fashion appeal. • this inexpensive yet aesthetically appealing product line will allow adidas to cater to the younger and lower income marketplace. 3

consumer needs • shoes that last longer and cost less money • innovate eco-friendly shoes that satisfies the consumers • finding a way to purchase recycled shoes by helping the environment

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market research: primary data pairs of shoes bought per age group (per year)

10+ 7-9 4-6 1-3

12-17

18-24

25-34

age group 5

market research: primary data response about environmentally friendly shoes Positive

Negative

Neutral

37%

40%

23%

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market research: secondary data • statistics show purchases of the adidas brand in the united states: – approximately 80% male – approximately 20% female

• adidas is one of the top 25 places that people shop in new york. • consumers purchase adidas because they are known for providing maximum level of comfort while supplying an aesthetic appeal. • customers are willing to purchase the eco friendly shoes that benefit the environment rather than manufactured and processed shoes.

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competition • nike

• new balance • puma • asics 8

swot analysis • strengths

– adidas is recognized worldwide by its traditional three strips style. – adidas has a diverse range of products. – adidas is strong in market strategy, international operations, and market leadership. – adidas has a long heritage and high brand value since 1924.

• weaknesses

– the productions for its products can be costly due to innovative technology. – it has price sensitivity towards consumers. – adidas is depended on third party manufacturing for its products. 9

swot analysis • opportunities

– adidas is endorsing famous people that can reach out towards consumers by style and preference. – adidas is improving in efficiency by expanding more product/service lines and creating innovative products. – adidas changes its products based on consumer’s lifestyles and keeps a strong brand name.

• threats

– adidas is dealing with pirated/fake imitations that are sold cheap and affects brand image. – competition with other brand names domestically and internationally. – promoting internationally can affect with the money value of its products.

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segmentation/targeting • primarily males (generation y) • primarily age: 18 – 24 years old – secondary ages: 12-17 – tertiary ages: 25-34

• follow: – – – –

tumblr blogs highsnobiety lookbook.nu hypebeast

• single and trendy • income between $25k to $100k per year • big spenders or are dependent on parents; not money savers

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website that bloggers can post about adidas

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positioning • environmentally friendly

– have the best/most credible recycled shoe

• trendy

– have our designs be the leaders and trendsetters in the fashionable recycled sneaker category

• just the right price

– have our price be not so low that it’s looked at as cheap/our competitors have lower prices but high enough that we have a sense of cool 13

market strategy • diversification analysis • product development

– introduce the new shoe through blogs.

• send free samples to notable blogs to review the shoe

– inform audience of shoe’s environmental benefits through banner ads on blogs. – have event at adidas store where shoe is introduced, and give out 20% off coupons for purchases of the new shoe.

• product differentiation

– pre existing knowledge that adidas is leader in sneaker quality. 14

product/service • eco-friendly shoes • recycled/ used shoes craved and developed to produce a new line of Trendy shoes • colors will be dictated by the colors of the recycled shoes and can be customized to the s desires • comes in all sizes and provide maximum level of comfort • this new technology of reusing old shoes will be later developed into the athletic side of the shoe industry 15

price • price skimming

– start off with a higher price, then lowers later

• relatively low cost, but still able to maintain high quality • customers may receive discounts if they bring in old pair of shoes (only 1 per customer). • fraction of higher quality products • prices will range from $39.99 to $69.99 depending on the lifestyle and demand. 16

place • debut stage: online websites – adidas.com – footlocker.com – finishline.com

• expansion stage: personal stores in new york – adidas originals – footlocker – finishline

• final stage: retailers and outlets in new york – outlet malls – individual boutiques – brand store malls like macys, bloomingdales, nordstroms

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adidas originals store in soho, new york

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promotion • blogs/ social media – free

• lookbook.nu • tumblr • instagram

• outdoor ment

– 8 sheet poster range from $300- $750 per month • fly posting • window display • billboards

• google ment banner ads – $15,000, 6 month cycle

• new york university school newspaper ments – $1,000 per month for 10 months

• facebook ads

– $2,560, $0.64 per click

• direct mail

– 5,000 emails cost about $200 19

success metrics • in a ten month period: – our goal is to sell 15,000 pairs of shoes – we expect a 20% increase in our sales

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questions???

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