ACKNOWLEDGEMENTS

DEDICATED TO OUR PARENTS AND

TEACHER

We have no words to express our feelings. But we have offer our

humbleness sense to ALMIGHTY ALLAH. The most beneficial,
gracious and merciful who enable us to perceive higher ideas of life
and helped us throughout our life especially in writing this report and
all blessing to His favorite PROPHET MUHAMMAD (PBUH) who is
the greatest personality of this universe.
After God we owe our heartiest gratitude to our parents and our family
whose prayers encouraged us to complete our task.
We are also extremely thankful to our Teacher (Sir ABID SAEED) for
their sympathetic treatment, reward less help, precious suggestions,
constant encouragement and personal interest and kind guideline that
enabled to write our report.
At the end we shall like to thank all our class fellows who always
helped us in our studies when we needed.
 OPPURTUNITY IDENTIFICATION

We know that a person can be best described with his shoes. We have
come up with a unique and simple product RAYO trainer .These days in
our hectic lives, we face a general problem of bad odors from a pair of
shoes worn by us for long duration .People sitting close to us or in our
nearby surrounding start getting irritated as well as they get bad
experience for their shoes.

PRODUCT INNOVATION CHARTER

PIC stands for product innovation charter. PIC is a document that
contains main information about the new product. It consists of
following points about the product.
With the help of our market research we have decided that our product
will be a high technology item and will provide ease to the sportsmen.
Also it will help them to maintain their physical fitness.
.

Vision

• Develop market and sports

• Be perceive da slender
• Be the company teams, associations, athletes, customers,
Consumers want
• To be associated with
• Set standards of the industry
 MISSION

"Adidas-Salomon strives to be the global leader in the

sporting goods industry with sports brands built on a passion
for sports and a sporting lifestyle.

We are consumer focused. That means we continuously

improve the quality, look, feel and image of our products and
our organizational structures to match and exceed consumer
expectations and to provide them with the highest value.

We are innovation and design leaders who seek to help

athletes of all skill levels achieve peak performance with
every product we bring to the market.

We are a global organization that is socially and

environmentally responsible, creative and financially
rewarding for our employees and shareholders.”

Background:
Adidas is a major German sports apparel manufacturer, part of the
Adidas Group, consisting of Replica Reebok sportswear company,
Taylor made Golf Company, Maxfli golf balls, and Adidas golf and is
the second largest sportswear manufacturer in the world. The company
was named after its founder, Adolf (Adi) Dassler, in 1948. Dassler had
been producing shoes starting in 1920 in Herzogenaurach, near
Nuremberg, with the help of his brother, Rudolf Dassler, who later
formed the other shoe company Puma. The company registered as
replica Adidas shoes AG (with lower-case lettering) on 18 August 1949.
The company’s Replica clothing and shoe designs typically feature three
parallel stripes, and this same motif is incorporated into Adidas current
official logo. The company revenue for 2005 was listed at 6.6 billion, or
about US$8.4 billion. Adidas revenue for 2006 was listed at 10.084
billion, or about $13.625 billion. Replica Adidas perfumery and personal
care products are manufactured by Coty, Inc. under license worldwide.|
FOCUS:
The main focus of the company is to become biggest market share
holder in sportswear business. Our product consists of many special
features but beside these features we are mainly focusing on introducing
technology and maintaining physical stats. As the target market is south
Asia including Pakistan.

Concept generation

Keeping in mind these problems, we took them it as opportunity and

thought of designing a product that contains a solution for these
problems and also can be appreciated in the market.

So, to overcome this problem we have come up with a solution, “RAYO

TRAINER”. RAYO will give the consumers a varied range to choose
jogger /trainer (including new technology in it). The feature of
acupressure will not only seek to health problems. An additional
material (like ARMBAND) will be used to enhance the quality. As this
will be a new product with new additional features of armband, blue
tooth system, water proof sole and rechargeable battery in the sports
trainer for the first time, so reasonable Price will be set based largely on
competitor’s price, by comparing quality, and features. It also has
special feature like Blood pressure, Heartbeat sensor, mp3 player, and
watch. So it will be characterized by high level of perceived quality and
features with price just high enough but not out of customer’s reach.
Determining all these factors we have included SWOT analysis and
marketing mix for RAYO.
 Concept Evaluation

Market research:

We conducted a survey after feeling the market gap in this

(joggers/trainers) product line. The research survey was based on
questionnaire and some personal interviews. In questionnaire it was
asked what were their priorities for joggers and the majority’s answer
was that whenever they want to be comfortable and easy or usually for
running or jogging. As people usually want a jogger for comfort so it is
very necessary that joggers / trainers should be very comfortable. More
over joggers isn’t for any specific age group. Our survey included all age
groups who use the joggers. Secondly people of all age groups usually
wear the joggers at gym or running so actually people don’t want to go
to gyms as they love to walk in natural atmosphere and environment but
as there are some facilities at gyms so people have to go there. More
over people like to listen to music during walking or jogging. People
analyze the quality by brand name. We had a question in our
questionnaire that what do they prefer? Quality or brand name? Most of
them were of the view that brand name represents the quality. In
interviews we came to know mostly aged people are always conscious
about their heart beat rate and curious to know the calories burned
during walk. As aged people mostly have various heart diseases so
actually it was very necessary for them to know the heart rate or BP so
that they can survive against health mishaps. Most of the aged people
said that they feel congested at gyms, as they won’t be able to have
breath in fresh air. So actually there is need of such innovative product
that helps the people to fulfill their requirements. The basic requirement
of the people of this market segmentation is first of all comfort and then
other facilities like music of your own choice that you can have only in
case if you have your own music player or ipod along with you. And
more over heart beat rate and calories burning status and distance
covered. So we felt a need of such a jogger instead of heavy machinery
at gyms like tread mill or running instruments that gives you all your
requirements. We just give an idea to people who were surveyed that
would you go for a product which have all these features in it so not
even they were willing to buy it but they insisted every one should buy
this instead of regular joggers even if one’s going to gym or not or want
to know or not it’s a essential thing if one’s want to take care it himself.
Actually people really like to know what is that product and how would
it work. They seem very impatient to have that product. So after
research we found great potential in this market segmentation.

SWOT ANALYSIS
STRENGTHS:
• Result oriented approach.
• The brand is going to be well accepted in the country.
• Quality and Comfort.
• New technology (Launched for the first time)

WEAKNESSES:

1. We may be unable to achieve projected sales.

2. Varied consumer preference.

OPPORTUNITIES:
• The market is always open for innovation.
• Participation within a growing market.
 • High penetration levels.
• The large increase in customer base that follows with the
acceptance of the one customer.
• Changing needs of customers.
• Innovation according to the changing preferences of the new
generation.

THREATS:
• Existing players in the market.
• Chances of idea of product being copied.
• Change in consumer preferences.

DEVELOPMENT
We can use jerk detector (sensor), Bluetooth technology, for counting
steps and distance, moreover we can add mp3 player, and pulse counter
and blood pressure sensor.

Financial Criteria:

A normal jogger costs 4000, say. We will make it in max 5000 to 5500,
as it will not exceed the purchasing power of the costumer. We will also
take in account the reserves of the company so that it may not exceed the
expenses of the company as well.

Team:
Project team will contain 4 Technical experts, 2 Marketing persons, and
a finance manager.

Technical Tasks:

• Test the jerk sensor, pulse sensor, distance counter for the condition.

• Interface all the components of the circuitry with watch and MP3 player via
Bluetooth.

Marketing tasks:

• Launch awareness campaigns for the sportsmen about exercise statistics.

• Meet the distributors and advertisement agencies to finalize the marketing

plan.

• Getting the brand endorsement done.

Design and Prototype:

Basically our product is a Jogger and we are going to launch this product
because of consumers’ needs and requirements. The product, a cross
training sports shoe will be sold under the brand name “RAYO”
Overview of product:

Special features:
ADIDAS not only offers comfort and enables you to make a fashion
statement but takes care of your health also. RAYO provides an armband
to place the digital indicator.

• Mp3 player

• Bp(blood pressure)sensor

• Water proof sole

• Watch

• Distance covered (in km/h)

 • Bluetooth system

• Rechargeable battery

Other Attributes:
• RAYO shoes behave like an extension of the foot, which is a
complex structure of bone, muscle and fatty tissues.
• RAYO provide the user with a comfortableness and uniqueness to
the maximum.
• RAYO has a sensor placed under the sole and comes with a
portable digital indicator.
• The indicator keeps track of the distance covered and the speed at
which you walk/run.

LAUNCH
SEGMENTATION:
Geographic:
City:
More focus on metro cities because people believe in trying innovative,
new and better products.

Demographic:
Age: 16 years and above.
 Gender: Male and female both.
Income: Earning above Rs 20000 thousand P.M.
Occupation: Students, Athletes.

Psychographic:
Socio-economic: Upper-middle class.
Elite class
Life-style: Sport-oriented, outdoor oriented.

Behavioral:

Benefits: Quality, service, after sell service.

User status: Non user, potential user, first time user.

TARGETING:
• Measurable: Size ,purchasing power ,characteristics of the
segments.

• Substantial: A segment should be largest possible homogeneous

groups worth going after with a tailored marketing program e.g.
earning capacity 20,000p.m.

• Accessible: Reach should be good.

• Differentiation: People have different perception about different

marketing mix. A business man and a sports person will have
different feel about Rayo shoes.
 • Actionable: Effective programs can be formulated for attracting
and serving the segments.

POSITIONING:

It is point of difference by presenting and highlighting the new attributes

of Rayo shoes.

• Relevance

• Feasibility

• Distinctiveness

• Believability

• Communicability

• Sustainability

Pricing:
Pricing is the process of determining what a company will receive in
exchange for its products. Pricing factors are manufacturing cost, market
place, competition, market condition, Quality of product.
Setting the price
As this is a new product with new additional features launching for the
first time, so reasonable price should be set according to the following
factor.

Price of product: Rs 5,300

Promotion:
• Marketing activity used to communicate to consumer about the
organization its product, its activity and directly or indirectly
expenditure.
• An activity or material that Offer a direct inducement to purchase .
• We can do our sales promotion by:
• Sport sponsorship
• By sponsoring local sports events.
• Event sponsorship
• By sponsoring events like New Year eve.
• Advertisement on wheels
• Contests Contest like marathon race can be organized to build
brand image and increase the sales volume.
• Tying up with core companies having brand name and involved in
making only sports accessories or associating with brand
companies producing health care gadgets to get the benefits of
their brand value and increase the sales volume.
 • Using print media
• Sport magazines
• Weekly magazines
• Health magazines
• Newspaper
• Electronic media
• Adds on TV and internet
• Radio
• Bill boards.

Distribution channels:

Choose the best outlets in the major markets in the major cities.
First we are launching in major cities of Pakistan like Karachi Lahore
and Islamabad.