adidas: eco-friendly line

yae kim

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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

2adidas originals

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

12-17 18-24 25-34

pairs of shoes bought per age group (per year)

10+7-94-61-3

age group5

market research: primary data

37%

23%

40%

response about environmentally friendly shoes

Positive Negative Neutral

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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

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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.

• 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.

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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

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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.

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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– 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.

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

• fly posting• window display• billboards

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

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

• facebook ads – $2,560, $0.64 per click

• direct mail– 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???