BET FOR TRAINERS

App Business Plan

 In collaboration with the Adidas Marketing Team: Jessica Broadbent (N0619053), Francesca Weston (N0621307), Ella Tarrant
(N0629492) and the Adidas App Development Team: Akash Dayalji (N0694358) and Joe Coleman (N0697775)

2
Table of Contents
List of Figures ................................................................................................................................................................................................................................... 4
Executive Summary...................................................................................................................................................................................................... 5
Appendix A.................................................................................................................................................................................................................... 6
Market Opportunity .......................................................................................................................................................................................................................... 6
Why is our App Unique? ................................................................................................................................................................................................................... 7
Appendix B ................................................................................................................................................................................................................... 8
Consumer Profile ............................................................................................................................................................................................................................. 8
Appendix C ................................................................................................................................................................................................................. 10
Detailed Product Overview............................................................................................................................................................................................................. 10
Appendix D ................................................................................................................................................................................................................. 12
Business Plan ................................................................................................................................................................................................................................ 12
Appendix E .................................................................................................................................................................................................................. 17
Prototype........................................................................................................................................................................................................................................ 17
Conclusion ................................................................................................................................................................................................................. 19
References ................................................................................................................................................................................................................. 20
Bibliography .............................................................................................................................................................................................................. 22
Appendices .................................................................................................................................................................................................................................... 27
Appendix 1 ...................................................................................................................................................................................................................................... 27
Appendix 2...................................................................................................................................................................................................................................... 28
Appendix 3 ..................................................................................................................................................................................................................................... 30
Appendix 4...................................................................................................................................................................................................................................... 32
Appendix 5 ..................................................................................................................................................................................................................................... 33

3
List of Figures
Figure 1- Authors Own
Figure 2- Magee, 2017
Figure 3- Authors Own
Figure 4- Authors Own
Figure 5- Unsplashed,2018
Figure 6-Magee, 2017

4
Executive Summary
‘Bet with Trainers’ is an Adidas game app created to bring together football fans and the Adidas trainer collections. The app is made in
collaboration with the marketing and app development team, who have experience in creating the original Adidas app and successful
marketing campaigns.

The app is a brand-new concept to the market. Customers sign up to the app and can place two free bets a day on premier league matches
for the chance to win discount codes for Adidas trainers. The app also gives customers the chance to win football and trainer related prizes
as an incentive for downloading the app. The app is a game and customers will not have to spend any money to place a bet, in fact the only
money they will be spending is if they decide to purchase a pair of Adidas trainers using their winning discount code.

From research men will be more enticed to download an app, if it involves sport. There is a great market opportunity for this app as most
fashion apps are primarily aimed at women. Adidas have found a gap in the market which is able to entice males by mixing sport and fashion
in a game. From market research, it has been found that young men between 18-24 are the top UK footwear consumers, with 95% of the
market having bought trainers in the last 12 months. The app is therefore aimed at UK males aged between 18-24.

The app is a brand-new concept with no direct competition. The ‘Bet for Trainers app’ will however be in indirect competition with existing
sports betting app and voucher apps. The app will incorporate the popular features of these styles of apps, however unlike betting apps it is
a free and safe way to bet and still earn rewards.

The app aims to increase trainer sales throughout the premier league season by enticing customers with discount codes. As well as gaining
customer data through sign ups, which can be used for other marketing purposes such as email marketing. The app will need an investment
of £50,000 to produce the app, and the overall costs before the launch will equate to approximately £300,000. Although this may seem like a
major investment, the app will recover these costs within the first launch month.

The long-term vision of the app is to expand into other sporting events, creating even more opportunity for sales and to open up the app to
international markets.

5
Appendix A
Market Opportunity

At Adidas everything we do is rooted to sports, with the consumer at the heart of everything the brand does. The brand’s mission is to be
the best sports brand in the world and not just through our products but also with the best service and experience (Adidas, 2018). With the
global rise of e-commerce, the company aims to boost ecommerce revenues to $1.9 billion to 4.9$billion by 2020 using digital channels with
the use of apps (Joseph, 2018). The Adidas digital- marketing and app development team have come up with a brand-new app concept to
make these goals become reality.

“Our Mission for the Adidas ‘Bet for Trainer’s’ app is to bring
together football fans, and enhance the consumers sporting lifestyle
in order to become the global leading in the sporting goods
industry”

The Adidas Bet for Trainer app is designed to enhance customer engagement
and boost footwear sales, by allowing football fans to place free bets on
Premier League games with a chance to win discount codes. These can then be
used to purchase any Adidas footwear, on the website or in store. The purpose
of the app is to offer the consumer a free way to place multiple bets around the
football season whilst receiving live game updates. The app targets 18-24-year-
old males who are football fanatics that love to use their football knowledge to
place bets and keep updated on live scores. The app is made to be user-friendly
and easy to navigate. The app adapts to the needs of the consumer and allows
them to interact with friends by sharing their results on social media
Figure 2- Magee,2018

6
Why is our App Unique?

This is a brand new concept that allows consumers to place free and safe bets to win discounts on trainers. The drive for betting can be
explained through the self-determination theory and the need for satisfying physiological needs of relatedness and competence (Lamont,
2018) (Appendix 1). The Bet for Trainers app allows consumers to still fulfill these needs at no extra cost!

The menswear market is growing, increasing the choice of retailers for men (Sender, 2018). With the footwear market continuing to grow
faster than the rate of clothing, making it vital for Adidas to stand out more than ever before. (Baram, 2018). It was found that young men
ages 18-24 are the UK’s top footwear consumers, with 95% of the market having bought trainers in the last 12 months (Hounslea, 2018).
Despite this being the case there seems to be a lack of apps aimed at this demographic, aspiring Adidas to fill the gap in this market.

To engage with this consumer, it’s important to underline how these consumers interlink fashion and their true interests. Fashion and
menswear are often influenced by socioeconomic and cultural influences in society (Choklat, 2018). This can be seen during the football
season as the menswear market feel the effect from ‘football fever’ with searches using the words ‘football’ and soccer’ are up 340% year
on year. (Sutherland, 2018). Adidas saw a 4% rise in revenues during the World Cup 2018. (Brown, 2018). Unlike women men do not seek
fashion advice from the runway but through sports (Odero, 2017). Our research has found 40% of apps used by men are centered around
sports, with focus on sports score, news and live game update. (Yu, 2018). Betting on sports via online platforms has also seen a rapid
increase in popularity and this form of entertainment has in turn expanded market opportunities. (Lopez, 2018). It was found that several
leading betting apps have reports 50% turnover is related to mobile devices. (Best UK Betting Apps, 2018).

This app is a brand-new concept with no direct competition. Research was carried out looking at Adidas’ leading competitors and any apps
they have developed (Appendix 2). Following on from this research, it was found no sporting retailers have developed any apps like the Bet
for Trainers app. Despite this there is indirect other competition from voucher apps and other sports betting apps.

We have conducted a TOWS and PEST analysis for the app, to understand how the app is unique within the market (Appendix 3).

7
Appendix B
Consumer Profile
Consumer Research
A survey was created for the target age group to establish the customer’s behaviour and needs regarding the app concept (Appendix 4). 100
males responded to the survey and the results concluded that 82% of participants watched football and 70% of these placed football bets.
100% of participants bought new trainers every 1-6 months and the results found that 86% of participants said that a discount would entice
them to buy a new pair of trainers.

Consumer Profile
This is the target consumer Jack. He’s a British 21-Year-Old student, currently studying ‘sport and exercise science’ at Loughborough
University.

He enjoys shopping both online and instore and likes to purchase trainers the most frequently. As Jack is on a student budget, he will always
look for discount codes before buying a product and may get put off purchasing if he is unable to find one. His staple trainer is his Adidas
Gazelles and he will frequently repurchase these in different colourways. He is keen to follow the latest trends but will stay loyal to Adidas
when it comes to trainers.

In his spare time, he enjoys going to the gym and socialising with his friends by either playing on the Xbox or going to the Student Union to
watch the football. He is easily influenced by his friends and likes to compete against them by placing bets on the matches he’s watching.

His favourite social networking sites to use are Twitter for keeping updated with the football. Instagram for following his favourite footballers
and sporting pages and uses Youtube to watch football highlights and sporting talk shows.

8
 Figure 3- Authors Own, 2018

Jacks ‘Bet for Trainers’ Journey

Awareness: Jack sees the advertisement on Instagram on a sponsored post from Adidas
Action: Jack downloads the app onto his smart phone
Action: Jack signs up to the app using his email address and date of birth, he accepts the terms and conditions for Adidas to send him emails.
He also links his twitter account to the app
Action: Jack places two bets on a Premier League match of his choice, he places a bet for a low discount on a team to winner, and takes a risk
on a difficult bet to earn a larger discount
Consideration: Jack watches the football match and browses trainers via the app that he could purchase with the discount
Action: Jack uses his winning discount code to purchase Adidas Gazelles on the Adidas website

9
Appendix C
Detailed Product Overview

The Adidas ‘Bet for Trainers’ app has been designed and developed to increase sales and
to obtain customer data for marketing promotions. Users must sign up and create account
before any bets can be placed, information such as username, first and surname name,
email and date of birth is required. Users will also have to accept the terms and conditions
before they are able to proceed any further, to comply with GDPR regulations. The app
then allows users to place up to two free bets per day during the Premier League Football
season to win discount codes for Adidas trainers, the codes can then be redeemed in both
instore and online in which the user has the whole period of the premier league season to
do so. Bets that the user can place include the following, team to win, how many goals in
a game- (over/ under 1.5 goals), any time goal scorer (player to score within the 90 mins+
extra time) and finally first yellow card of the match.

Each bet has a specific amount of discount that the user can win.

Team to win: 15%

How many goals in a game- above/under 1.5 goals: 15%
Any time goal scorer (player to score within 90mins+extra time)- 20%
First yellow card of the match: 40%

The app is a game and therefore all bets placed are free.

Figure 4- Authors Own, 2018

10
Before the user can claim any winning discounts, they must share a message via social media or email to inform their friends or followers
that they have won a discount, and that they can do so by downloading the app. The user can also invite their friends to play.

The app also has a trainer shopping page, which is regularly updated with images of new in trainers. The user can scroll through these during
the match breaks, and if they chose to click on an image it will take them to the trainer on the Adidas website. Therefore, enhancing the
brands Omni-channel marketing, and creating an integrated shopping experience.

User Benefits

With the rise of gambling and online betting with young people the
Bet for Trainers App creates a safe environment in which users can
place limited free bets and enjoy sporting events in a game format,
without the risk of losing money. The app creates a sense of
community and involvement between the users and the sporting
events. Users can win large discounts to spend on trainers that
would not be available anywhere else.

The app will have clear text and images to make the user experience
seamless. Betting apps usually contain many different features and
so Bet for Trainers App will incorporate all the features into a smart
and simple design.

Furthermore, users are essentially using two apps within one where
they can place bets for sporting events whilst accumulating discounts
for trainers. This means the user will engage with the app and may
even tell friends and family about it. Figure 5- Unsplashed, 2018

11
Appendix D
Business Plan

The app will cost £307,805 in total including 50,000 for the initial app build. There will be a five-month payback period for the app, with the
app being in profit within the first month of its launch. The app will have a four-month time frame to be built and marketing materials will
be created prior to the apps release.

Sales A will be from trainer sales alone, this was calculated by research from the Millennial Population in the UK (Statista, 2018), how
millennials engage with the football (BBC, 2018), and from our survey (Appendix 4) about who shops at Adidas. From this we could estimate
if all these consumers bought a pair of trainers with discount, this would be our sales.

Sales B will be from email marketing from the users accepting the T&C’s when they sign up.

The app will need continuous maintenance and development to ensure it runs smoothly 24/7. This would involve things like bug fixes,
system patches, updates etc. The server infrastructure must also be considered. Therefore, we have set aside 10,000 a month for
maintenance.

A risk analysis was undertaken to ensure we have covered costs for all possible issues which could occur for the app (Appendix 5).

12
Profit and Loss

13
Year 1

14
Year 2

15
Annual Income from Sales A and Sales B

16
Appendix E
Prototype

17
The overall designs of the screens consist of a clean and easy to follow format, for example the logo is in the same location throughout
the app. There is a small navigation bar located at the top of each screen for the user to quickly and efficiently access the tab they need. The
colour scheme includes Black, Red and White – to match with the designated Adidas trainer’s logo.

Start-up / Home: This screen was kept simple intentionally to enable users to get familiar with the design of the app and the navigation.
Therefore, on this page, the user can either sign in to their account using their username and password or join to make a new account.

Join: This screen will allow the user to enter their details to make an account to use the Bet for Trainers app. This screen will have a few text
fields so the user can register. There will be a confirm button at the bottom when the user has finished filling in the boxes. The logo will be
at the top of the screen. This screen is also kept simple so that users don’t have difficulty whilst on that screen.

Log in: This screen will only include 2 or 3 boxes such as “username”, “password” and “confirm”. Likewise, the logo will be placed at the top
of the screen to give the app a professional look.

In Play: This screen showcases all the current matches taking place in text format. It contains the navigation hub and the logo in the same
place as the other screens.

Trainers: Contains the images of trainers available & by clicking on the image this will take the user to the website. Condensed format, but
clear.

Your Bets: A mini hub screen to display all the user’s bets that have been placed. This will have the same formatting as the other screens
but will consist mainly of text. Information displayed will include the teams, specific matches, time, score, ratios, winnings etc.

Future Matches: The Future Matches screen displays all the upcoming premier league matches in the month, and the next month.

Selected Game: This screen contains the selected game from the In-Play screen by the user. It has a larger thumbnail image, whilst
displaying the teams, time of the game, and score. This screen is to provide the user with more information on their selected game of
interest.

18
Conclusion
We believe ‘Bet for Trainers’ will be successful for our target market within the app industry. The future vision of the app is to expand into
other sporting events, creating even more opportunity for sales and to open the app to international markets.

Figure 6- Magee, 2018

19
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Appendices
Appendix 1- Theory

27
Appendix 2-
Competitor
Apps

28
29
Appendix 3- TOWS and PEST

30
31
Appendix 4- Survey

32
Appendix 5- Risk Analysis (Technical and Marketing)

33
34