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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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