23070575 Product Launch

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    ADIDAS launches front

    runner in India.

    The product, a cross

    training sports shoe will

    be sold under the brand

    name FRONTRUNNER.

    They come under the

    category of consumer

    goods for fitness and

    health.

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    The basic idea behind launching this product

    is to help out in making calculated and well

    monitor workouts.

    An idea of freshness as with shoes customer

    will be provided with 20 perfumed strips that

    make you to feel fresh even after using the

    shoe for long hours.

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    Adidas Ltd is a German sports apparel

    manufacturer and part of the Adidas Group,

    which consists ofReeboksportswear company,Taylor Made-Adidas golf company, and

    Rockport.

    The company is the largest sportswearmanufacturer in Europe and the second largest

    sportswear manufacturer in the world.

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    The company revenue for

    2006was listed at

    10.084 billion, or about US $13.625 billion

    and the 2007 figure was listed at10.299

    billion, or about $15.6 billion.

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    To become the best sports brand in the

    world.

    To that end, never equate quantity with

    quality.

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    STRENGTH

    - Result oriented approach.- The brand is going to be well accepted

    in the country.

    - Quality and Comfort.

    - Perfume strips

    (Launched for the first time)

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    WEAKNESS

    - We may be unable to achieve projected

    sales.

    - Varied consumer preference.

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    OPPORTUNITY

    - 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 product

    by one customer.

    - Changing needs of customers.

    - Innovation according to the changingpreferences of the new generation.

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    THREAT

    - Existing players in the market.

    - Chances of idea of product being copied.

    - Change in consumer preferences.

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    The Indian footwear market is estimated to be about Rs

    10,000 crore in value terms and is growing at 10 per centannually

    India ranks second among the footwear producing

    countries next to China.

    India produces more of gents footwear while the worlds

    major production is in ladies footwear.

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    What makes India makesIndia an attractive

    destination forT

    echnologyand Investments.

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    Availability of abundant raw material base

    Large domestic market and

    The opportunity to cater to world markets

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    1. Category

    Mens Shoes - 45 %

    Ladies shoes - 40 %

    Kids shoes - 15%

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    45%-MENS

    40%-WOMENS

    15%-KIDS

    MARKET SHARE-

    Category

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    Branded - 42 %

    Unbranded - 58 %

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    FRONTRUNNER 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.

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    Foam based foot contour

    The foam which is made of polyurethane that

    adjusts the lowest layer of the shoe by

    spreading itself according to the differentshapes and sizes of feet to give it a complete

    snug and cushioned fit.

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    Polyurethane is a unique material that offers

    the elasticity of rubber combined withtoughness and durability.

    It uses Triple-Shock-Absorption technology

    which provides long term light weightcushioning.

    Perfumed strips placed under the soles to keep

    your shoes and feet smelling fresh as ever.

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    DRY-TEC-PUR

    - insole for best climate control

    Techno Gel- Techno gel-pad with excellent shock absorbing

    features.

    Latex-Pad

    - Latex-pad, integrated in the PU-insole for asmooth step

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    Mainly in the heel area an enormous pressure

    arises, which will be led directly from the foot

    the spine and the joints.

    By the construction of the new Triple-Shock-

    Absorption it comes clear, how to block the

    pressure and to absorb it by the 3 components.The extremities will be released considerably.

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    ADIDAS not only offers comfort and

    enables you to make a fashion statement but

    takes care of your health too

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    FRONTRUNNER provides an armband to

    place the digital indicator.

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    FRONTRUNNER comes with a small portable

    digital indicator which displays the distance

    covered (km) and the speed (km/ph).

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    To keep your shoes and feet smelling fresh

    Sesmo comes with 20 long lasting perfumed

    strips which can be placed under the soles.

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    MAXIMUM SPREADINGOFTHE

    PRESSURE

    Mainly in the heel area an enormous pressure

    arises, which will be led directly from the footthe spine and the joints.

    The new Triple-Shock-Absorption, blocks the

    pressure and absorbs it by the 3 components.

    The extremities will be released considerably.

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    The curvature of the spine and damaged discs are

    the consequences of missing shock absorption.

    Therefore the foot contour technology comes to

    good effect.

    The foam based polyurethane forming he lowestlayer of the shoes adjusts according to the various

    shapes and sizes of feet. This is essential to get a

    complete fit of the shoes.

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    Segmenting Variables

    Geographic

    Country-INDIA

    Region-Metropolitan cities and cosmopolitan cities

    (Mumbai, Bangalore, New Delhi, Chennai,

    Kolkata and other important cities.)

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    Demographic:

    Age - 15-60

    Gender - Male, female

    Occupation - College going youth and

    working population

    Social Class - Upper-Middle class and

    Upper class.

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    PSYCHOG

    RAPHICPsychographic segmentation divides buyers

    into different groups based on social class,

    lifestyle, or personality characteristics.

    LIFESTYLE

    OutdoorsOriented.

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    Behavioral:

    Occasions: Regular and special occasions

    Benefits : Convenient and economical

    Attitude towards product: Enthusiastic

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    Targeting strategy or targeting is the selection of the

    customers you wish to serve.

    The decisions involved in targeting strategy include:

    Which segments to target?

    How many products to offer?Which products to offer in which segments?

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    AGE -15 years-60 years

    GENDER-Male and female

    LIFE CYCLE - Sports personality, youngsters,

    married, unmarried

    OCCUPATION -Sportsman, students, fashion

    oriented people, adventurous

    SOCIAL CLASS Upper middle class, upper class

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    Market positioning means the process by which

    marketers try to create an image or identify in the

    minds of their target market for its product,

    brand, or organization.

    The type of positioning used by us is double benefit

    positioning:

    -Complete monitored fitness

    -Odor free

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    The price is the amount a customer pays for the product.

    Price is the only revenue generating element amongst the

    4ps, the rest being cost centers.

    PRICINGOBJECTIVE-

    -ToMaximize Profits

    -ToMeet a Specific Target Return on Investment

    -To Achieve a Target Sales Level-ToMaintain or EnhanceMarket Share

    -ToMeet or Prevent Competition

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    PARTICULARS COST PER PIECE

    RAWMATERIAL & LABOUR Rs 850

    BLUTOOTH INSTRUMENT Rs 625

    WRIST BAND Rs 350

    SHOCK ABSORPTION

    TECHONOLOGY

    Rs 225

    USB Kit Rs 145

    PERFUMEDSTRIPS Rs180

    PACKGING Rs 35

    TOTAL Rs 2410

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    Market skimming

    The practice of price skimming involves charging

    a relatively high price for a short time where anew, innovative, or much-improved product is

    launched into the market.

    PRICERANGE- RS4999 onwards

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    We are planning to launch FRONTRUNNER in

    exclusive outlets located in the Metro cities as

    well as also through the Adidas exclusive outlets

    in order to minimize risk and initial expenses

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    TVAdds

    PrintMedia

    Hoardings

    Posters

    Radio Adds

    Internet Adds

    Collaborating with health and sports clubs. Sponsoring sports activities

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    FRONTRUNNER will be

    hosting a launch party to

    open the first store in

    Mumbai.

    Our brand

    ambassador will be Sachin

    Tendulkar. A large screen

    will be set up at the venue.

    Sachin would be shown

    running towards the store

    wearing

    FRONTRUNNER.

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    FRONT

    RUNNER also has a launch offer: It includes membership points.

    SILVER MEMBERSHIP can be bought with 2 pairs

    of shoes. Along with that one dry- clean session for

    your shoe will be done. Discount coupons will also be

    provided to buy perfumed strips in the future.

    GOLD MEMBERSHIP includes 2 dry clean sessions

    and a 1 year warranty for your digital indicator. It alsogives you a 15% discount on perfumed strips.

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    Indian branded sports shoes industry is sized about

    Rs650cr and expected to grow about 700cr by 2010.

    Approximately 55% of Indian branded sports shoes

    market is dominated by Adidas along with Reebok andexpected to have revenue of around Rs400cr by 2010

    end.

    We are expecting to contribute FRONTRUNNER

    about 4-5% of total sales of Adidas generating about

    Rs35-40cr sales by 2010 end.

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