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.

 The

basic idea behind launching this product is to help out in making calculated and well monitor workouts. 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.

An

 Adidas

Ltd is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylor Made-Adidas golf company, and Rockport. company is the largest sportswear manufacturer in Europe and the second largest sportswear manufacturer in the world.

The

 The

company revenue for 2006 was listed at 10.084 billion, or about US $13.625 billion and the 2007 figure was listed at 10.299 billion, or about $15.6 billion.

become the best sports brand in the world. To that end, never equate quantity with quality.
To

 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)

 WEAKNESS

We may be unable to achieve projected sales. Varied consumer preference.

 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 changing preferences of the new generation.

 THREAT

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

Indian footwear market is estimated to be about Rs 10,000 crore in value terms and is growing at 10 per cent annually India ranks second among the footwear producing countries next to China.
The India

produces more of gents footwear while the worlds major production is in ladies footwear.

What makes India makes India an attractive destination for Technology and Investments.

 Availability of

abundant raw material base market and

Large domestic

The

opportunity to cater to world markets

1.

Category
Mens Shoes Ladies shoes Kids shoes - 45 % - 40 % - 15%

MARKET SHARECategory
15%-KIDS 45%-MENS

40%-WOMENS

Branded Unbranded

- 42 % - 58 %

 FRONTRUNNER has

a sensor placed under the sole and comes with a portable digital indicator. indicator keeps track of the distance covered and the speed at which you walk/run.

The

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 different shapes and sizes of feet to give it a complete snug and cushioned fit.

 Polyurethane is

a unique material that offers the elasticity of rubber combined with toughness and durability. uses Triple-Shock-Absorption technology which provides long term light weight cushioning. strips placed under the soles to keep your shoes and feet smelling fresh as ever.

It

Perfumed

 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 a smooth step

Mainly in the heel area an enormous pressure arises, which will be led directly from the foot the spine and the joints. the construction of the new Triple-ShockAbsorption it comes clear, how to block the pressure and to absorb it by the 3 components. The extremities will be released considerably.

By

 ADIDAS

not only offers comfort and enables you to make a fashion statement but takes care of your health too

FRONTRUNNER provides an armband to place the digital indicator.

 FRONTRUNNER comes

with a small portable digital indicator which displays the distance covered (km) and the speed (km/ph).

 To

keep your shoes and feet smelling fresh Sesmo comes with 20 long lasting perfumed strips which can be placed under the soles.

MAXIMUM SPREADING OF THE PRESSURE Mainly in the heel area an enormous pressure arises, which will be led directly from the foot the spine and the joints.
The

new Triple-Shock-Absorption, blocks the pressure and absorbs it by the 3 components. extremities will be released considerably.

The

 The

curvature of the spine and damaged discs are the consequences of missing shock absorption. Therefore the foot contour technology comes to good effect. foam based polyurethane forming he lowest layer of the shoes adjusts according to the various shapes and sizes of feet. This is essential to get a complete fit of the shoes.

The

Segmenting Variables
Geographic Country-INDIA Region-Metropolitan cities and cosmopolitan cities (Mumbai, Bangalore, New Delhi, Chennai, Kolkata and other important cities.)

Demographic:
Age Gender Occupation Social

Class

- 15-60 - Male, female - College going youth and working population - Upper-Middle class and Upper class.

 PSYCHOGRAPHIC

Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics.
LIFESTYLE

Outdoors Oriented.

Behavioral:
Occasions: Regular

and special occasions Benefits : Convenient and economical

Attitude towards

product: Enthusiastic

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?

 AGE

-15 years-60 years -Male and female

GENDER

LIFE

CYCLE - Sports personality, youngsters, married, unmarried

OCCUPATION

-Sportsman, students, fashion oriented people, adventurous Upper middle class, upper class

SOCIAL CLASS

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

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.
The PRICING

OBJECTIVE-To Maximize Profits -To Meet a Specific Target Return on Investment -To Achieve a Target Sales Level -To Maintain or Enhance Market Share -To Meet or Prevent Competition

PARTICULARS RAW MATERIAL & LABOUR BLUTOOTH INSTRUMENT WRIST BAND SHOCK ABSORPTION TECHONOLOGY USB Kit PERFUMED STRIPS PACKGING TOTAL

COST PER PIECE Rs 850 Rs 625 Rs 350 Rs 225 Rs 145 Rs180 Rs 35 Rs 2410

Market skimming
The

practice of price skimming involves charging a relatively high price for a short time where a new, innovative, or much-improved product is launched into the market. RANGE- RS4999 onwards

PRICE

 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

 TV Adds Print

Media Hoardings Posters Radio Adds Internet Adds Collaborating with health and sports clubs. Sponsoring sports activities

 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.

FRONTRUNNER 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 also gives you a 15% discount on perfumed strips.

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 and expected 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.