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yae kim

adidas: eco-friendly line
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the brand with the 3 stripes
• product
– trendy eco-friendly adidas shoes – recycling old shoes to make fashionable
– 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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• what is adidas?

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.
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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 age group

25-34
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market research: primary data
response about environmentally friendly shoes
Positive Negative Neutral

40%

37%

23%

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

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competition
• nike

• new balance
• puma • asics
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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. – 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.
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• weaknesses

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. – 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.

• threats

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segmentation/targeting
• primarily males (generation y) • primarily age: 18 – 24 years old • follow:
– – – – – secondary ages: 12-17 – tertiary ages: 25-34 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 • trendy
– have the best/most credible recycled shoe
– have our designs be the leaders and trendsetters in the fashionable recycled sneaker category – 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
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• just the right price

market strategy
• diversification analysis • product development
– introduce the new shoe through blogs.

• product differentiation

– 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.

• send free samples to notable blogs to review the shoe

– pre existing knowledge that adidas is leader in sneaker quality.
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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 users 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
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price
• price skimming • 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.
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– start off with a higher price, then lowers later

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 advertisement
• fly posting • window display • billboards

– 8 sheet poster range from $300- $750 per month

• google advertisement banner ads

• new york university school newspaper advertisements
• facebook ads • direct mail
– $1,000 per month for 10 months – $2,560, $0.64 per click

– $15,000, 6 month cycle

– 5,000 emails cost about $200
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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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