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Corbin Rachor Chanelle Bertelsen Cattie Mae Williams

contents company summary


the new strategic initiative


market analysis


target consumer


communication & promotion


financial plan




executive summary AdidasBio is an initiative embracing the technological advances of biometric technologies to enhance the consumer experience in store. The store will incorporate finger scanners, as well as scanners that can identify consumers gender, race, age range, as well as track their movement throughout the space. This information will be collected to create a more engaging, interactive shopping experience. For this to be successful AdidasBio will have to properly execute the implementation of the biometric technology. Throughout the store the space must move fluidly and safely, while still maintaining its integrity. Second, the marketing of AdidasBio must be directly to the consumer with complete transparency. With the understanding that with the implementation of the biometric scanner is to create an engaging interactive space, where there is new discovery each visit. This focus on the discovery aspect is what will drive AdidasBio forward. Lastly is the acceptance of the consumer of the mobile space and technology. With recent identity theft scares in large corporations this could be a touchy concept. With correct marketing and successful implementation of the technologies our hope is that consumers will follow.

company summary


history The Early Years It all started in Bavaria, Germany. After first steps in his mother’s wash kitchen, Adi Dassler registered the “Gebrüder Dassler Schuhfabrik”. 1924 was the date he started his mission to give athletes with the best possible equipment ( The Founding Father August 18, 1949, Adi Dassler had to start over again and started the “Adi Dassler Adidas Sportschuhfabrik”, with 47 employees. This was also the point in time where Adi Dassler registered the shoe that became the most famous, the Adidas 3-Stripes (

A Miracle Adidas created the screw-in-stud lightweight football boot during this time ( “When the German national football team faced the unbeatable Hungarians in the 1954 World Cup final, they won so much more than just a trophy. Their unbelievable victory would be heard around the world for decades to come. And it made Adidas and its founder a household name on football pitches everywhere” (

Fine Futures Franz Beckenbauer’s tracksuit was modeled and celebrated ( This was Adidas first attempt with apparel. The created a whole new market segment and product category ( Becoming multi-sports specialist Adidas kept expanding tapping into more sporting opportunities to reach a range of athletes ( This is the point in time Adidas grew their portfolio and further developed apparel products to outfit their athletes. Innovation At this point Adidas dealing with many financial burdens ( Upon hiring a new marketing team, the brand tried to refocused Adidas ( “Some of the most famous Adidas innovations, such as Torsion (1989), the Equipment concept (1991), the Streetball campaign (1992) and the Predator football boot (1994), were born in this era� (

An innovative leader Herbert Hainer became the new CEO of adidas-Salomon AG.

On route By 2010 the Adidas group created a new business plan to fit the modern market ( “Route 2015” is the name of the new initiative that reach out to all Adidas brands including sales channels, incorporates special targets for all brands, sales channels and Group functions globally (

Innovation “Running changed forever. Big words. History will tell us if it is true. Adidas introduced the Energy Boost running shoe which featured a completely new cushioning material. Created in cooperation with the German chemical company BASF, the material combines former contradictory benefits of soft and responsive cushioning for a running experience unlike any other” (

today A new digital focus Right now Adidas is entering the digital world and trying to figure out how to reach their consumer in the most managable way. They have created a professional training system called miCoach. This allows athletes to, “track, record and improve their performance in sports, including football, running or basketball” ( Adidas also launched a new sub-brand which is known as, Adidas NEO. This brand targets the young generation. The company used social tools to engage in this opportunity, for example this customer can shop at the window of an Adidas retailer with the touch of a button (Adidas. com). “We do not know what the future in sports will bring but it will not stop us from shaping it. We will keep pushing the envelope with continuous innovations. And more importantly: we will make sure that we give you the tools you need to be the best athlete possible. Just how Adi wanted it” (

“Because exercise and fitness are so sticky, these brands have a unique opportunity to be part of their customers’ daily routine, and fitness apps use technology to create customer loyalty. It’s a big opportunity for these brands,” -Maureen Mullen, direct of the research and advisory group a L2

who we are mission

“To be the leading sports brand in the world.”

vision “Our passion for sport makes the world a better place.”

Our brand vision expresses our highest goal and motivation. It is our ultimate purpose. Our vision gives customers, employees, and everyone else connected with our brand something to believe in and belong to. It is a goal towards which every employee can organize their efforts, energy, and passion. We are, and always will be, a brand that truly cares about the human condition. Our vision is one of an industry leader.

values Authentic adidas is the first genuine sports brand. We were founded by a true athlete whose one guiding principle was to make equipment that makes athletes better. This is what made Adi Dassler Authentic then, this is what makes us authentic today, and this is what will always make us authentic.

Passionate Passion is at the heart of sport and of every true athlete. Passion knows know borders, no age, no race and not time. Passion is what drives athletes to succeed and is what drove Adi Dassler to make his first pair of athletic shoes in 1920. It is this same passion that will always guide adidas.

Adidas Group Headquarters - Herzogenaurach, Germany via

Inspirational Honest

Being inspirational helps build and maintain relationships with At all times and in all relationships, adidas is genuine, ethical the athletes we support. It is our emotional connection to our and fair. heritage, our athletes and to sport that inspires us to create products and communications that, in turn, inspire others.

Innovative There is continuous innovation in every area of our business – from product technologies that help athletes perform better to communications that help athletes understand our brand and our products. New ideas and solutions can be found in every office and department around the world.

Committed Our commitment to our athletes and sport is uncompromising, unwavering and forever. We will continue to sponsor, advise, listen to and support athletes with the same resolve as Adi Dassler.

adidas: what they hold close to the field


ownership structure



Adidas’ head office is broken up into five key players. The Adidas board of members work together to allocate the companies structure. Their keys goals are to maintain and allow Adidas to operate internationally in many niche markets. While is the second largest sports goods manufacture in the world, this corporation has to maintain status and expand to new technologies to able fundamental growth. The Board is primarily responsible for enhancing shareholders’ interests and entice effective operation. Other vital roles are, material agreements, non-recurring projects, determining the financial structure of the company including treasury and dividend policy, overseeing control, audit and risk management, and lastly, setting and monitoring remuneration policies. Right now Adidas is working on expansion and remodeling for 2015.

(Annual, 37)

Shares Adidas first initial public offering was November 17TH, 1995 and first split share June 6TH, 2006 (ratio 1:4). Adidas is present on Dow Jones Sustainability Index world and Europe and Dax-30 to name a few important indices (Annual, 11). Their symbols on the stock market are as followed, ADS, ASDG.DE. By the end of first quarter had 209, 216, 186 outstanding shares that where registered no-par-value shares (Annual, 11). As of 2014 Adidas shares have drop when compared to year to date and the DAX-30 by 3% and the MSCI (World textiles, Apparel & Luxury Goods) by 15% (Annual, 11).

(Annual, 14)

current status Adidas to this day is the largest sportswear manufacturer in Europe and rivals Nike for second place in the world (Poor Boy). Adidas is also one of the most widely known active wear brands in the world, fostering many sports wear technologies we know to date. In the first quarter, North American Adidas sales were down 20% (Annual, 9). Specifically Adidas was down in the basketball sector and the company admits to missing some of the fashion trends in the past twelve months (Annual, 9). “Importantly though, all of our other fitness-related products as well as Classics are doing extremely well (Annual, 9). Adidas is in the process of reconstructing their internal structure internationally. This will be executed by a new leadership team that is joint with Reebox (Annual, 9). These roles have been appointed by Mark King, the President of Adidas Group North America (Annual, 9). The goal is to have stronger penetration in the American market place and drive product and sales. During the first quarter this year, the advanced global economy has strengthened, “was supported by modest, but consecutive, GDP expansion in the euro area. Nevertheless, despite improvements in economic activity and sentiment, many developed markets continued to face significant negative challenges, such as high unemployment and indebtedness” (Annual, 14). In the USA the economy grew first quarter. This was in favor to the Adidas group, meaning inflation and interest rates were low. Fundamentally this helped drive consumption (Annual, 14). When directly looking at sporting goods first quarter they did have a slow start across the board (Annual, 14). For example, “While basketball and high-performance technical footwear and apparel continued to be in strong demand, casual footwear and outdoor saw declines” (Annual, 15).

(Annual, 24)

current revenue Compared to 2013, adidas Group’s revenue decreased 3% to € 19.88 billion from € 14.492 billion from € 14.883 billion in 2012 (Annual, 122). The Group’s gross margin increased 1.5% points to 49.3% (2012: 47.7%) due to the drive of positive impact from a more favorable pricing strategy, product and regional sales mix as well as a large share of higher margin retail sales (Annual, 122). The Group’s gross profit rose 1% to € 7.140 billion in 2013 versus € 7.103 billion in 2012. According to World Bank, global GDP growth moderated slightly to 2.4% for 2013 , compared to the 2.5% of 2012. The emerging markets outperformed developed economies, causing them to grow 4.8% and 1.3% (Annual, 122). GDP growth was flat in 2013 in Western Europe, which was an improvement from the contraction of 0.3% the previous year. This shows that the region is overall, a very stable one. However, some of the region’s major economies, like Italy and Spain, area in recession. This was mostly due to high unemployment numbers, austerity inhibiting invesment, spending and confidence. These developments offset modest growth in the larger economies using the euro, Germany and France. These countries have shown a recovery in consumer demand and spending which is


(Annual, 122)

income statement & net sales In 2013, the adidas Group’s revenue grew 3% on a currency-neutral basis as a result of sales increase in retail and other businesses. Currencyneutral wholesale revenues remained fairly stable compared to that of 2012. Currency-neutral wholesale revenues remained stable. Reebok grew at a low-single-digit rate, while revenues at adidas remained at the prior year’s level. Currency-neutral retail sales increased 8% versus the prior year as a result of sales growth at both adidas and Reebok.

(Annual, 122)

% of group sales As of 2013, the global sporting goods industry recorded very solid growth, mostly being driven by an increasing amount of consumer spending in emerging markets. The e-commerce channel has continued to see rapid expansion all across the industry, with a variety, with a range of strategies being implemented to leverage commercial opportunities like digital, social media, and particularly innovative mobile technologies. The industry has seen a large number of fitness-tracking devices and fitness mobile apps coming into the market more frequently than past years. The 2014 FIFA World Cup supported the football category well, especially towards the end of the year (Annual, 126).

(Annual, 66)

future outlook

Due to the absence of any major economic shocks, the sporting goods industry is expected to expand in 2014. Specifically, this industry

has already benefited from the 2014 Winter Olympics in Sochi, Russia, and is anticipated to benefit greatly the FIFA World Cup which will be held in Brazil this year ( Sporting goods retailers are expecting a move towards a more omni-channel retail business model, while e-commerce and digital advertisements are predicted to remain growth areas. According to macroeconomic trends, consumer spending on sporting goods in emerging economies is expected to grow much faster than those of more developed markets ( The private consumption in many developed economies is forecasted to improve moderately in 2014, supporting modest industry expansion into those remaining markets.

In Europe, improvements in consumer confidence and domestic demand should positively impact the sporting goods industry in 2014. The region’s industry will also gain momentum due to the large number of European teams participating in the 2014 FIFA World Cup in Brazil and the importance of football for those markets ( This benefit will also positively impact many European emerging markets, including Russia, who also qualified. In the USA, industry growth rates are expected to be ahead of the economy’s overall growth. E-commerce channels are forecasted to remain strong, particularly via mobile ( From a category perspective, the trend towards highperformance technical footwear and apparel looks set to continue. Retro silhouettes are projected to remain strong across a variety of categories, including basketball and tennis. The US golf market is forecasted to continue to be very challenging but slight improvements are

expected as the year progresses. The sporting goods industry in Latin America is projected to record healthy growth in 2014, with wage growth expected to promote consumer spending and discretionary purchases ( Furthermore, given the significance of football in this region, the industry is expected to maintain momentum from sales relating to the 2014 FIFA World Cup in Brazil (

In 2014...

• the adidas Group’s gross margin is forecasted to increase to a level between 49.5 % and 49.8 % (2013: 49.3 %) (

Improvements are expected in most segments. Group gross margin will benefit from a positive pricing, product and regional sales mix, as growth rates in high-margin emerging markets are projected to be above growth rates in more mature markets ( In addition, the Reebok brand will positively influence Group gross margin development. However, these positive effects will be partly offset by less favourable hedging terms compared to the prior year, adverse currency movements in emerging markets as well as increasing labour costs, which are expected to negatively impact the Group’s cost of sales (

• The Group’s other operating expenses as a percentage of sales are expected to be around the prior year level (2013: 42.3 %). Sales and marketing working budget expenses as a percentage of sales are projected to increase modestly compared to the prior year. Marketing investments will be centred on major sporting events such as the 2014 FIFA World Cup and highly innovative product launches, particularly in

the running category. Further, we will support Reebok’s growth strategy in key fitness categories, leveraging partnership assets such as CrossFit, Spartan Race and Les Mills (

• We expect continued positive cash flow from operating activities. Cash will be used to finance working capital needs, investment activities, as well as dividend payments ( We intend to largely use excess cash to invest in our Route 2015 growth initiatives,

in particular the further expansion of our own-retail activities ( In 2014, gross borrowings of € 681 million will mature ( In order to ensure long-term flexibility, we aim to maintain a ratio of net borrowings over EBITDA of less than two times as measured at year-end (2013: –0.2) (

The adidas Group will continue to spend around 1 % of Group sales on research and development in 2014. Areas of particular focus include advanced cushioning solutions, lightweight and digital sports technologies as well as sustainable product innovation (

Additionally, investments and research emphasis will also include areas such as new manufacturing processes and advanced materials. In 2014, capital expenditure is expected to amount to between € 500 million and € 550 million (2013: € 479 million) ( Investments will focus on adidas and Reebok controlled space initiatives, in particular in emerging markets. These investments will account for around 50 % of total investments in 2014 (

swot analysis strengths •Adidas is a strong brand and is recognized and respected internationally (Business Development Strategies).

•“Affective Supply Chain Management, and ultimately leads to a high profit to earnings ratios yearly” (Business Development Strategies).

•Adidas has financial strength, high net income, and a strong distribution chain as a link internationally (Business Development Strategies).

•Strong management team (

•Effective marketing strategy and external brand team-ups; distribution

•Brand recognition and reputation in Europe (

mixes strong internationally (Business Development Strategies). •Adidas has a diverse brand portfolio, and a high level of diversification

•Strong control over its own distribution channel (Adidas. com)

internationally (Business Development Strategies).

•Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.) (

•In the Soccer industry, Adidas has a stronghold internationally (

weaknesses • “Adidas outsources 97% of its global production to 3rd party manufacturers based largely in Asia” (Adidas Market Analysis). • 35% of production is in China to reduce costs and to the laid-back labor laws (Adidas Market Analysis). • The lack of labor laws causes concern with children working in the factories. As of 2013 it put Adidas up for criticism (Adidas Market Analysis). • Strong competitors in the USA to contend with ( • E-commerce is limited to USA ( • The direct sale to consumers is creating conflicts with its own resellers ( • Online customer service not “helpful” or easy to find (

opportunities • “Adidas has recently undertaken a massive restructuring of its global operations, moving from a vertically integrated brand structure, to a function related structure. This includes global sales and brand functions, which is responsible for both brands. It has also closed a lot of its regional headquarters, allowing for a more centralized structure” (Adidas Market Analysis). • Adidas is trying to centralize their focuses on the highest potential markets and channels. For example, Adidas has found 500 new points of sale in China (Business Development Strategies). • “Route 2015” and “U.S. Generation 2015” are Adidas’ future growth plans to increase geographic growth and reach out to new developing markets (Business Development Strategies). • Collaborations with other online retailers to offer Adidas products (Adidas. com) • This in return will provide opportunity for more business opportunities this includes experimenting with new technological innovations (Business Development Strategies). Such technologies are Micoach and Techfit (Business Development Strategies). • Possibility of outsourcing the web development and e-commerce to a third party developer (

threats • Nike’s strong reputation in the footwear and apparel industry ( • Negative image created by the sponsored athletes (i.e. Kobe Bryant and his sexual assault case) ( • Increase in the Price of Raw materials ( • Continuing challenges in import/export duties (

perceptual map (u.s. stores)

competitors “Converse is Sneakers. And Converse is Change. Starting on the court and later it was adopted on the street. Converse began as a rubber company to make sneakers and boots, and then found its way to the game of basketball reinventing the sport. The Converse Chuck Taylor All Star sneaker became the court sneaker; it stood for the game. The company expanded into other sports with new sneaker silhouettes like the Pro Leather, the Star Player, and the Weapon. Just when it seemed to be a shoe for athletes only something happened. Converse sneakers were being adopted by the rockers showing up, on the streets, on rappers, on icons, on rebels and originals. It became the sneaker of choice for individuals. From All Star to Jack Purcell to CONS, Converse doesn’t confine itself to one style or definition. Be who you want to be in Converse sneakers or clothes. An artist, rebel, rapper, thinker, gamer, skater, smoke jumper, freelance dentist, whatever. If you’re wearing Converse, you know who you are” (

ASICS, an acronym derived from the Latin phrase, Anima Sana In Corpore Sano - a sound mind in a sound body. Staying true to the philosophy by which it was founded, every ASICS innovation, every concept, every idea is intended to create the best product. Their mission is to become the number one brand for the sports enthusiast. To accomplish this, we pledge to continue to make the best product; striving to build upon our technological advances and pushing the limits on what we can learn from the body and its needs in athletic gear. They pledge to bring harmony to the body and soul.ASICS products were introduced to the United States in 1977 and brought with them an incredible story of athletic performance and technical advancements, a philosophy which still holds true today.

“TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD” If you have a body you are an athlete “NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and accessories, controlling more than 60% of the market and becoming a pop culture icon. Nike may be one of the youngest of the major brands, but it is the dominant brand around the world. In 1963-1964 when University of Portland track coach, Bill Bowerman, and Phil Knight, a mid-distance runner joined forces to import and provide low-cost, high tech running shoes from Japan in order to provide alternatives to the German-dominated athletic shoe market. Operating under the name Blue Ribbon Sports, Bowerman and Knight began to sell the Japanese Onitsuke Tiger (now known as ASICS) running shoes. Jeff Johnson, a former rival of Knight, joins the company in 1965 as their first full-time salesperson and sells shoes from the back of his van at local and regional track meets until opening Blue Ribbon Sports’ first retail outlet at 3107 Pico Blvd, Santa Monica California. Blue Ribbon Sports officially incorporates in 1967 and does business under this name until approximately 1970 when Bowerman’s desire to improve on the shoe designs of Onitsuke Tiger and Knight’s ambition to do more than simply import and resell running shoes. The company’s new name, Nike, Inc. was born when Jeff Johnson, dreams of the Greek goddess of victory, Nike. A succession of shoes, many follows, some of the most famous are the Waffle Racer, Air Force One, Air Max 93, Max 95, and Air Max 97. “Today Nike is know as an innovator, leading the way with technology, always one step ahead of the rest” (

“PUMA is one of the world’s leading Sports Brands, designing, developing, selling and marketing footwear, apparel and accessories. For over 65 years, PUMA has established a history of making fast product designs for the fastest athletes on the planet. PUMA offers performance and sport-inspired lifestyle products in categories such as Football, Running, Training and Fitness, Golf, and Motorsports. It engages in exciting collaborations with renowned design brands such as Alexander McQueen and Mihara Yasuhiro to bring innovative and fast designs to the sports world. The PUMA Group owns the brands PUMA, Cobra Golf, Tretorn, Dobotex and Brandon. The company distributes its products in more than 120 countries, employs more than 10,000 people worldwide, and is headquartered in Herzogenaurach/Germany” (

“New Balance began as a Boston-based arch support company in the early 1900’s, developed into a specialized shoe manufacturer in the 1970’s, and has grown to become a leading global athletic products company. Today New Balance is a family of brands including New Balance, Dunham, PF Flyers, Aravon, Warrior and Brine. Since the days of selling arch supports to police officers and waiters, New Balance has been a brand concerned with meeting the needs of the everyday athlete. Part of producing superior footwear and athletic apparel is manufacturing it to fit all widths and sizes, because a better fit produces better performance” (New 1 of every 4 shoes we sell in the USA is made or assembled here.

“Inspired by the brand’s heyday in the 1970s, Fila Style pays homage to the original line by capturing its spirit and ethos right down to the exact colors, fabrics and detail. Fila encapsulates class and style with cool 70s retro nostalgia whilst quality and finish is in tune with Fila’s Italian heritage dating back to 1911” ( The company started in 1923 with a focus in high quality knit wear geared for tennis players. The company works to create fabrics designed to mirror the athletes’ movement like a second skin not to over power. Today the style plays homage to their original line capturing the spirit with color and fabrics.

Manufacturer of high performance footwear and apparel for the avid runners in the world. They look to there costumers as a muse stating: “At Saucony, we exist for runners. Runners inspire us, bring us new ideas, force us to be better. They drive our design and engineering. They keep us competitive. They keep us hungry. They keep us honest. Whether it’s in a conference room or out on a lunchtime run, we’re constantly talking about and arguing about our sport, runners and the products that fuel them. We love our products and we run in everything we make.This focus and passion fuels us as we strive to create the best running shoes and apparel on the planet. We leave work each day knowing we’ve done everything to make runners’ lives just a little bit better. At Saucony, a good day is when we get to run. A great day is when we inspire someone else to run” (

“Since 1966, K•Swiss has represented innovation, quality, performance and style. Its signature K•SWISS “CLASSIC,” the first leather tennis shoe, made its debut at Wimbledon in 1966, and more than 40 years later, is still a style staple both on and off the court. Today, K•Swiss’ premium sports heritage has expanded from tennis footwear, to also lifestyle, running, training, nautical, and free-running footwear that stands up to the performance demands of world-class athletes and trendsetters alike” (K•Swiss).

“It started with a simple plan to make a superior T-shirt. A shirt that provided compression and wicked perspiration off your skin rather than absorb it. A shirt that worked with your body to regulate temperature and enhance performance.Founded in 1996 by former University of Maryland football player Kevin Plank, Under Armour is the originator of performance apparel - gear engineered to keep athletes cool, dry and light throughout the course of a game, practice or workout. The technology behind Under Armour’s diverse product assortment for men, women and youth is complex, but the program for reaping the benefits is simple: wear HeatGear® when it’s hot, ColdGear® when it’s cold, and AllSeasonGear® between the extremes.Under Armour’s mission is make all athletes better through passion, design and the relentless pursuit of innovation” (UnderArmour. com)

retail distribution (24% of Net Sales) The Adidas’ Group overall vision is to improve their operational key

Retail distribution plays a consistent role of importance for the

performance indicators and retail sophistication with the goal of

Adidas Group. This distribution is a key driver for their Route 2015

delivering healthy, sustainable growth with an outstanding return on

journey, and the reasons are manifold:

investment, executing as a best-in-class retailer (www.adidas-group. com)..

• To showcase their breadth of brands and product offering (ex. Adidas brand centers, as a benchmark for retail partners) (

In order for the group to achieve this, they have implemented four key pillars of success:

• To provide consumers access to their products in mono-branded

• Focus on the customer

stores in the high streets and malls around the world (adidas-group.

• Achieve operational excellence


• Exploit portfolio of brands • Leverage global presence and scale

• To create distribution in markets which do not have traditional wholesale distribution • To leverage learnings from direct interaction with consumers through own retail for the entire organization • To provide a clearance channel (ex. factory outlets) (adidas-group. com).

(Annual, 24)

Focus on Customer Service Building on the strong foundation laid over the past years, Adidas’ retail strategic initiatives are now structured and prioritized against the principles of growth and efficiency ( We want to further simplify our structures and procedures in order to free up resources for all important consumer-facing tasks ( This focus on efficiencies will also enable the successful implementation of our growth initiatives, which include: • Customer Service Model: Deliver and embed a defined Customer Service Model that connects, engages and inspires our consumers during their shopping experience ( • Customer Relationship Management: Develop and implement a tailored CRM programme ( • Further drive product commonality by increasing the global mandatory range share in all our own stores ( • Drive people excellence through improved training and development procedures ( • Omni-channel focus: Create a seamless shopping experience for our consumers by connecting our online and offline touchpoints (adidas-group. com). Refreshing + Expanding the Chain

Although we continue to focus heavily on retail operational topics, another key area of focus is elevating the retail environment to ensure our stores represent fully the image and aspiration of the brands. As such, in 2014, we will commence an ongoing refresh of our core concepts

for the Adidas brand with the introduction of the Home Court format for Sport Performance and the Neighborhood concept for Originals ( We will also further experiment with single category stores such as Outdoor, Women and Kids, largely in our key markets China and Russia ( In addition, we will also continue to run our pilot store projects for NEO and Reebok to further test their acceptance with the consumer. In 2014, we will expand the NEO concept to other European countries outside of Germany. In addition, the Reebok FitHub concept will be further expanded and tested (

At the end of 2013, the Adidas Group had further grown its net store base, operating 2,740 own stores for the Adidas and Reebok brands worldwide ( In 2014, we will continue to invest in our worldwide retail network with additional store openings in the emerging markets, particularly in Russia/CIS (

wholesale distribution (63% of Net Sales)

Wholesale distribution’s objective is to deliver sustainable profitable market share growth in collaboration with third-party retailers ( The Adidas Group strives to establish long-term partnerships with the most dynamic retailers, including sporting goods chains, department stores, buying groups, lifestyle retail chains and e-tailers (

Toolkit Drives Market Management In order to drive speed and consistency within our selling processes, we have developed a set of methods and standards that are brought together in a common global toolkit for our sales teams (adidas-group. com). These enable us to permanently seek and use best practices around the world and help us to continuously improve other methods within the markets ( The toolkit supports, for example:

Customer + Range Segmentation to Exploit Market Potential

As part of our toolkit, our customer and range segmentation initiative is a key enabler to consistent customer relationship

• The complete selling processes to our customers and consumers (

management ( This facilitates the allocation of tailored product packages to groups of comparable customers (adidas-

• The setting of consistent global trade terms. In principle, the segmentation is based on the distinction between sports and lifestyle retailers that have either a brand-driven or

• The standardization of branded POS solutions.

a commercial positioning ( • The establishment of customer service excellence. This approach allows us to drive consistent messages and synergies, while leaving flexibility in local markets to react and adapt to specific local consumer and customer needs ( By fostering this entrepreneurial spirit, we can rely on highly engaged management teams ensuring local traction and strong on-the-ground relationships.

People Development Program to Build the Best Sales Team Wholesale is facing a changing customer landscape, driven by further consolidation, increased cross-border retail activities and a digital shift in consumer behavior ( We strive to have the best team in our industry, enabling us to react flexibly to all market developments. This means continuous skills development. The Wholesale people development and training framework called PEAK (Performance, Excellence, Activation and Knowledge) sets the expectations for individual excellence and provides tailored training programmes ( All Wholesale employees attend at least one training programme per year ( (Annual, 24)

online distribution

The success of our eCommerce strategy rests on our ability to attract, convert and retain the consumer in a highly competitive marketplace ( Therefore, we will activate our key unique selling proposition by offering broad ranges with high size availability to showcase the depth of our brands ( We want to attract consumers by having the right products and

the right marketing at the right time through our e-shops ( To drive conversion, we consistently improve our site visibility online and how it ranks in online searches.

Consistency in Global Presence Increased In 2013, we successfully completed the foundational work and roll-out of our own eCommerce business with the execution of our strategic priorities that include: • Establish consistent technical platforms globally ( • Implement a new eCommerce distribution policy for our wholesale partners ( • Create one consumer destination by integrating brand, shop and customization sites enabling improved user experiences ( In addition, we finalized the roll-out to the markets including, for example, Latin America, which means we have our own eCommerce platforms now available in every key market around the world for both Adidas and Reebok (

Go-To Destination For Our Brands Our strategic priorities for eCommerce focus on our desire to become the premium online destination for our brands through an innovative shopping experience. Strategic initiatives are concentrated on efforts to: • Ensure relentless site enhancements to evolve the shopping experience across devices ( • Leverage the brands to further enlarge the experience and discovery ( • Continue to evolve full customization through mi Adidas and YourReebok including simple personalization in key markets ( • Become the “go-to destination” for all Adidas and Reebok products in terms of technologies, benefits and heritage. • Deliver personalized experiences at key consumer touchpoints by leveraging the full potential of our evolving CRM loyalty solutions (

current crm activities • Mi adidas: creation and order of custom mi adidas products; can change colors and view your product created online ( • Mi team: same as above but for a sports team’s uniforms ( • Mi coach: custom training -adiconcierge: contact to track down hard to find products, buy gift cards for corporate use, or place team or group orders ( • Having an adidas account: you can save a list of your favorite products in a personal wish list; receive detailed information regarding your order ( as well as track your order every step of the way; can search order history and save multiple billing and shipping addresses making it easier and faster to purchase products; exclusive promotions and flash sales; invitations to in-store events; receive newsletters (

integrated distribution This is a joint approach in every market for agreed Top 100 Cities to identify where we want our brands successfully represented - our blueprint for the future. The initiative encompasses a joint approach between our three channels, allowing us to define how best to capture the consumer in the biggest and most attractive cities around the world without cannibalizing our brands and distribution mix ( • Provides a joined-up approach to growing our business ( • Cements the integrity and presence of our brands within a market ( • Grows market share in under penetrated affluent cities ( • Eliminates duplication of effort ( • Clusters own investment to achieve scale and site excellence (

adidas central hubs


global sales strategy

Global Sales aims to drive the commercial performance of the Adidas Group by building brand desire, meeting consumer needs at all times and capturing additional consumer potential ( Global Sales is responsible for all commercial activities of the Adidas and Reebok brands, serving our consumers through three channels: Wholesale, Retail and eCommerce (adidas-group. com). This channel-focused approach has allowed us to establish strong market positions globally, deepening and expanding our cooperation with leading wholesale partners, operating one of the biggest mono-branded store chains in our industry and becoming a significant e-commerce player with one consistent global platform ( Global Sales to Drive Omni-Channel Approach

The playing field for Global Sales has undergone fundamental changes over the past few years: Driven by the digitalization of communication tools, consumers are increasingly informed about product and service offers, they are socially engaged, and they shop wherever and whenever they like, regardless of country borders or opening hours ( Reacting to the shift in consumer behavior, many brick & mortar retailers are harmonizing their market approach across channels, and are growing their business across country borders ( E-commerce pure players are expanding globally, and vertical retailers are widening their assortment into sporting goods (

With the aim of putting ourselves at the forefront of our industry, Global Sales is currently in the process of evolving its strategy from a channel focus to an integrated omni-channel approach, which will better enable us to achieve a globally consistent product offer, brand communication, availability and service across all channels and consumer touchpoints ( This evolution

of the strategy will help to align more consistently the delivery of our product concepts globally. An example of this can already be seen with the unveiling of the official FIFA World Cup match ball which was globally launched on December 3 and sold as of December 4 in a synchronized manner across our Wholesale, Retail and eCommerce channels (

With the creation of a separate Global Sales function on the Adidas Group’s Executive Board, our commitment to drive more growth opportunities and leverage from our sales processes across channels and country borders has also been reflected structurally ( The new organizational set-up integrates all sales activities under one roof ( It also includes a new market structure for Western Europe: As of 2014, we will serve the European consumer with one integrated

organization, building on our far-reaching concept store network and our eCommerce platform which is now live in most European markets ( The major European retailers will be served by one sales organization, ensuring market consistency (

route 2015 (goals) What is more, the group is following the “Route 2015”; a strategic business plan incorporating all brands, sales channels and group functions globally ( This is done in order to grow the revenues of the Adidas group to 50% currency neutral to 2015 ( Global Sales directs all local market organizations responsible for the distribution of the Adidas and Reebok brands. On 365 days a year and at more than 140,000 points of sale, the Global Sales team is aiming to create desire for the Adidas and Reebok brands and grow market share through wholesale partners, own-retail stores and our e-commerce activities. The strategic business plan Route 2015 outlines our long-term priorities: • Increasing the share of controlled space to over 50% of Group sales by 2015 ( • Driving growth and maximizing brand potential in key demographic locations ( • Leveraging cross-channel sales opportunities and range efficiencies, facilitated by our omni-channel approach (adidas-group. com).

Besides these priorities, we strive for business growth particularly in North America, Greater China, Russia/ CIS, our emerging markets in the Middle East and Latin America, in Japan and in our newly created market set-up for Western Europe ( Of these markets, the three attack markets North America, Greater China and Russia/CIS are targeted to contribute around 50% of the sales increase we anticipate as part of Route 2015 (

Besides these priorities, we strive for business growth particularly in North America, Greater China, Russia/CIS, our emerging markets in the Middle East and Latin America, in Japan and in our newly created market set-up for Western Europe ( Of these markets, the three attack markets North America, Greater China and Russia/CIS are targeted to contribute around 50% of the sales increase we anticipate as part of Route 2015 ( WITH ROUTE 2015 WE’VE SET OURSELVES THREE MAIN GOALS: • Achieve 17 billion euros in sales in 2015 ( • Bottom line to grow faster than top line with a compounded annual earnings growth rate of 15% per year

( • Reach an operating margin of 11% sustainability by 2015 at the latest (

The interim summaries all prove that Route 2015 is paying off. It is without a doubt the most comprehensive plan this Group has ever created and it was developed in close alignment across all parts of the business. Now Route 2015 ensures that the entire organization is working in a more disciplined and more focused manner on exactly the same goals than ever before. “all in” for value creation (

current communication & promotional activities

Marketing Communication strategy of Adidas is based on on-line and offline advertising and promotion. Development of informative web site is the top priority for Adidas ( On the one hand, it helps Adidas to sustain brand image and deliver better services to customers ( As Adidas competes in a progressively fiercer market place for a larger wallet share of an increasingly discerning and diverse customer base, they become ever more communication-dependent ( This is very important because consumers are becoming increasingly demanding and sophisticated in their requirements and expectations, and able to defend their bargaining stance/purchase position ( On-line promotion involves banner ads and on-line community, current information about new products and new services, and as the most important support activities.

Communication mix is Adidas can be described as a choice between alternatives. Therefore, for maximum penetration Adidas selects primary (first choice) media that interlock and cross support each other. As the most important, Adidas uses repetition in promotion campaign because it is as important as the promotion itself ( Using brand celebrities is a very effective

technique used by Adidas to popularize its goods. It helps the company to develop a certain image of Adidas brand and create a core of loyal supporters (

Adidas is a market-oriented organization that continuously identifies and reviews it’s consumers’ needs to ensure its products meet those needs ( It aims to exceed customer expectations by adapting its product portfolio to meet the changing needs of consumers ( The groups focus on its customers, teamed with product and marketing innovation, plays a key role in Adidas’ success. Every organization requires looking into its marketing in relation to the marketing mix (often referred to as the

4 P’s) ( These elements include the right product, sold at the right price, in the right place, using the most suitable form of promotion (

A global organization like Adidas must tailor its marketing mix to specifically designated markets ( This is called international marketing as it takes both cultural and social differences into account when planning upcoming marketing activity (

Sports marketing is a key focus for Adidas’ mix. The growing popularity of sports as entertainment has led to a huge increase in sports marketing. Adidas’ founder was one of the first people to see this potential in this form of marketing when he sponsored the FIFA World Cup back in 1978 ( Sponsorship involves a business paying to be associated with another organization, event, or TV program (

“For Adidas, London is a key focus for the sportswear market, for both performance sportswear and sports fashion. This market sets more trends than anywhere else in the country. London 2012 gave Adidas a platform to target this audience but with a global reach. The sponsorship deal obtained by Adidas was the broadest set of sportswear rights in Olympic history. It became the

Official Sportswear Partner of the London Games and the exclusive licensee of all branded (Adidas + London 2012) and event branded (London 2012 only) clothing. From these rights Adidas set four key marketing objectives” ( : - To ensure a clear association as Sportswear Partner of London 2012, Team GB and Paralympics GB ( - To engage and excite the 14-19 year old audience in order to drive brand preference in the UK ( - To deliver a Licensed Product Return on Investment (ROI) (branded and event branded licensee rights) ( - To become the most talked about sports brand in 2012 (

promotion & social media

SOCIAL MEDIA #’s TO DATE: Facebook 16, 444, 299 likes Instagram 1, 143, 113 followers Pinterest 7, 412 followers/3 boards Twitter 978,000 followers/1123 tweets

ABOVE-THE-LINE PROMOTION: +Television Ads + Print Ads + Campaigns BELOW-THE-LINE PROMOTION: + Sponsorship Deals + Celebrity Endorsements + Direct Marketing +Public Relations + Social Media SOCIAL MEDIA: + Facebook + Twitter + Instagram + Youtube + Pinterest

adidas neo screens

Adidas is currently in the process of implementing a more interactive retail technique, specifically, using digital technology to create a more immersive brick-and-mortar experience for customers (Digest Canada). The retailer’s goal is to change the way customers view their products when walking by their windows - rather than browsing their assortment, they want customers to actually be able to purchase their products without ever having to enter their location (Digest Canada). The brand has launched a number of concept stores in European cities such as Nuremberg, Frankfurt and Helinski, for their Adidas Neo line (Digest Canada). These stores allow and encourage customers to purchase product through a touch-enabled interactive storefront. Locations feature what they call Neo Window Shopping, which acts as a full functioning virtual store, complete with life-size mannequins and digital products for people to play with as they wish (Digest Canada). Once the customer decides they want to purchase a product they simply connect their smartphone through a prompted app, and can literally drag and drop products into their shopping cart on their mobile device (Digest Canada). “The experience is completely customizable,” says Raffael

Sarracini, Senior Manager, Digital Commerce and Marketing, Adidas Canada, who is also an extension of the Adidas Neo e-commerce experience (the line largely exists as e-commerce) (Digest Canada). Because the screen and mobile application act as the point of purchase, customers are able to shop our product assortment 24 hours a day (Digest Canada).

“When you provide an interactive experience you can provide a much deeper brand connection and allow the consumer to spend more time with your brand, which is always a good thing,” says Sarracini. “It’s about building a connection with the consumer and also driving awareness of our product lines (Digest Canada). It also ties into our omni-channel strategy of rolling out devices that can enhance our commercial reach (Digest Canada). So, the interactivity is more of a brand component, but the actual devices themselves, and their functionality, allow us to deploy a really broad omni-channel strategy that’s not necessarily possible with some of the regular laptop or tablet devices that are currently in some retail environments” (Digest Canada).

This philosophy combined with the new technology of biometrics is what we will implement in the renewal of our space to create an unforgettable brand experience for the Adidas customer (Digest Canada).

advertising activities (highlights) Digital Ads RUN DMC (2013) Simon Wassef, head of strategy, Sid Lee Amsterdam, says that this campaign marks the first time that Adidas has leveraged speech and command recognition to create an interactive video for consumers to collaborate with, adding that it’s part of the brand’s overall strategy to continue to push technological boundaries to reach its consumers ( “Our audience is natively digital. They move seamlessly online to offline, consuming and sharing content as currency and as an indicator of how culturally connected they are,” he says. “As such we didn’t want to create classic advertising that would drive to an online platform where they could ‘like’ the experience or go shopping. We wanted the advertising to be the experience, and vice versa, with opportunities to interact, share and shop all in the one place” ( Traditional Ads

Traditional advertising gives Adidas immediate access to a market of potential customers (mobilemarketer. com). This potential customer base is not limited to the number of catalogs and brochures that are printed and mailed out, but strong brand image and core of word-to-mouth strategy (

Social Media Goals = derive customer insights. Social Media manager of Adidas, Lia Vakoutis, says that all medias together provide “the most holistic view of Adidas sentiment on the web” (davidatqut). Marketing Communication/Interaction Adidas is a true expert in communicating with fans and followers on social networks. The brand has created several very successful social media campaigns to create hype around new products or activities by Adidas (ex. “TheReturn” campaign about a comeback of an NBA star who created his own Adidas shoe - within 30 days Adidas accomplished over 45,000 mentions in the Twitter community with the hastag #TheReturn) (davidatqut). “There are many different ways that Adidas has used social media to engage with fans. From exclusive first-looks of the latest Adidas footwear to live chats with Adidas’ partner athletes, our goal is to give fans access to the brand in ways they wouldn’t be able to get anywhere else. ” (Lia Vakoutis, Head of Digital Strategy at Adidas America). Generate and foster sales leads The analysis of customers and the needs and wants of the fans and followers to build a strong connection with customers - making it easier to create products tailored exactly to customer ( Social Commerce Adidas uses a lot of different ways to sell their products with the help of social networks and social commerce concepts. You may notice that the Adidas online store gives you the chance to “like” or “send to friend” below every product offered. This is an opportunity for Adidas to make use of network effects and cross-selling via social technologies (

current crm activities • Mi adidas: creation and order of custom mi adidas products; can change colors and view your product created online ( • Mi team: same as above but for a sports team’s uniforms ( • Mi coach: custom training -adiconcierge: contact to track down hard to find products, buy gift cards for corporate use, or place team or group orders ( • Having an adidas account: you can save a list of your favorite products in a personal wish list; receive detailed information regarding your order ( as well as track your order every step of the way; can search order history and save multiple billing and shipping addresses making it easier and faster to purchase products; exclusive promotions and flash sales; invitations to in-store events; receive newsletters (

the new strategic iniative


the new initiative: AdidasBio

CEO of Adidas Herbert Hainer is trying to take the company to the next level. The initiative ‘Route 2015’ is an implementation tactic to further the company internationally in the market place and keep up with competitors. Adidas is struggling to reach the millennial customer. When looking at Adidas’ reach, they are very limited with their presence and voice online. These are all current goals of the ‘Route 2015’ initiative. Adidas want to be apart of the digital revolution from the execution of the product to how the store operates (Annual, 14).

‘Route 2015’ has already helped Adidas to foster a digital store. These initiatives to date say that, “Adidas has launched a new store blueprint for its Originals fashion brand with a Wi-Fi equipped lounge and mobile charging points, aiming to persuade younger shoppers to linger longer and spend more in its high-margin, own-run outlets” (Reuters). This revamp in stores has started in Berlin and it making it’s way across seas for far with 30 stores under their belt (Reuters). Other Digital creations are the “digital bar” for charging devices in store, the revamped store seeks to reflect the Berlin urban vibe by stripping back decor to raw concrete and brick and exposing lighting, while underwear is displayed in an eye-catching vending machine” (Reuters). We can see Adidas is trying to reach the millennial customer especially with the NEO line. They are aiming to drive trends by using celebrities such as Selena Gomez and Justin Bieber for their advertisements. A choice clearly made to engage a younger demographic. More over, the Adidas brand is broken up into two major sectors, sports style and sports performance. Neo is

more youthful. To launch this product Adidas introduced a new point of sale for the customer by shopping online out side the stores with installed iPads (Reuters).

Adidas want to make their presence in the market stronger while still gaining some ground on its competitors. Our initiative is on track with Adidas’ current ‘Route 2015’. We want Adidas in New York to be an attraction that draws in the global customer. New York is an international hub and the Adidas customer travels allover the world and we want this experience to be the best taking the Adidas brand further into the digital world. The stores also have social media mirrors that let customers take photos of themselves while sporting items they’ve found to send to friends via Facebook or Twitter, and shoppers can also control in-store music through a digital jukebox.

key objectives • Further increase sales • Innovate brand relationships and selling for exploration • Make Adidas’ online presence stronger and more interactive for the consumer • Adopt new technologies to better understand the customer’s wants and needs • Create a new application that benefits Adidas while still being true to it’s well-known brand identity


why new york? We chose to implement our strategic initative for the adidas brand center on Broadway in New York City. We feel that this location is best suited for the biometric technology we would install due to its high volume of customers and constant traffic of tourists and locals alike.

610 Broadway New York, NY

best practice “The mobile interaction of static space to enhance brand discovery. This will be presented by a tailored space fitting the majority of traffic at one time based on the biometric analysis.�

To succeed in our goals for Adidas we are going to implement the use of biometrics, introduce a new Adidas app, and various in-store touch screens that all coincide with each other. These tools will be used to further both the Adidas customer’s in-store and out-of-store experience, all while aiming to bring in more milennial customers. Through the use of biometrics, the Adidas location on Broadway will be allowed to fully understand and cater to their customer in a new way. We feel that there is a need to implement such technology due to the location chosen. Being situated in a high traffic area, it is often hard to fully reach your target consumer when the majority of shoppers are tourist visiting from out of town. It can be hard to create a floor layout that appeals to all types of shoppers, for each customer has their own tastes. Adidas wants to evolve with their consumer, whether that pertains to their products, services, or retail environment. By developing a new space they can, “drive sustainable and quality growth, building a strong reputation and loyalty with consumers” ( Just like their customers demands sporting goods to fit their lifestyle, they also demand a new way of shopping ( This is what we aim to give the Adidas customer. Adidas has already segmented who their target customer is by creating five main groups that correlate with Route 2015: 1. Fit for life: “Sport is no longer just about competing and winning. Sport is becoming more embedded in consumers’ everyday lifestyles. Motivations and goals are becoming more holistic, fun, socializing and life-enhancing” ( 2. You are what you know and what you do: “Society is embracing a life-long learning attitude, and placing more emphasis on what we know and do versus what we have and where we come from” ( 3. Celebrating individuality: “Consumers increasingly fulfill their desire to differentiate themselves from one another by being more creative – on the one hand mixing and matching products and services they need, and on the other hand seeking personalized offerings tailored for them. The growth in social media continues to fuel more and more opportunities to display individuality, making it even more important” ( 4. Together is better: “There is an increasing need for meaningful social interaction, both online and offline, as consumers become more mobile, and digital technologies and social networks make it easier for them to connect with like-minded people” ( 5. Back to basics: “For everyday life, products and services are desired to be simple and authentic, making consumers’ lives easier. There is a growing interest in outdoor activities and minimalistic designed products, reflecting the desire to reconnect and be in tune with nature” (Adidas. com).

technology Biometrics: +Center of the store will be a movie platform elevator moving set merchandise from floor to floor upon biometrics. (Like LV DNA elevator). +The store will be divided in half by style: Adidas performance and Adidas style. From there is will be micro segmented into quadrants with moving platforms and wall displays. +Utilizes revolting platforms to move product. +Platforms can move up and down side to side. +Direct marketing Screens people can explore product through them as well, and order online in stores (important if not in stock and an international customer.). +Finger print scanners are also attached to screens to view personal profile. +Biometric finger scanners will also be placed at the doors if they wish to “check in”. earn points and exclusives if they already have an Adidas profile on app.

App: +Customer will download app if not already at the store. +Once they have the Adidas app they an also “check in” to gain points for exclusive deal if they already have an Adidas profile on app along with their preexisting. +Here they can also interact with the Micoach and on the screens +Shows when floor will move

Biometrics will fully outfit the Adidas store in Soho and will be clearly stated. When you first walk in there will be two face scanners at each door. This will document the entrance characteristic such as age, race, and gender to name a few. The face scanners can’t identify specific people. At each door there will also be finger scanners. These finger scanners will allow for the Adidas customer to ‘check in’ and receive reward points and other exclusives in store. This finger scanner will work directly with the app which will hold vital customer information a the customer profile such a likes, and equipment dislikes, direct feed to social media, Mi Coach, access to in store events, and exclusives. If the customer entering the store does not already have the app they will be advised to download it. All collected information is then fed to a centralized computer system where data is graphed and applied to a specific algorithm. Parts of the store will be moving constantly, while others will change with the customer population and other parts only two times a day. This collected data will allow the store react to the majority of customers in a store at once. For optimal rotation in the store it will laid out in a specific manner. Down the center will be a centralized walkway leading to a large glass ‘elevator’. This elevator would move constantly with the biometrics of the store. On either side of the walkway there would be moving platforms (picture a half divided in half, then into quadrants). These floor platforms would only move twice a day. The tables and displays on the platforms can rotate and move amongst the platforms more radially. Untimely the store will be split by collection. Their will also be elements of the store that are in constant motion such as shoes on rotating wall conveyor belts, modular shelving units, and industrial moving clothing hangers (like packaging centers).

Hot zones The app will allow the customers to also interact with the stores biometrics, such as moving conveyor belts themselves, touch screen interaction, live time store mapping, moving hot zones, and control table rotation. Inside the store an on the exterior of the store there will be large touch screens allowing the customer interact with the Adidas brand and shop 24/7 (for example the Adidas store in Berlin). Â

how it works

First biometrics will improve customer service levels by monitoring the shopper’s behaviors when visiting the Adidas store. The biometrics does not recognize individual people, but rather characteristics such as, gender, age, time and nationality. The key is for the experience to be completely transparent to the end user. Therefore having a space that interacts with the customer must be transparent as we collect and utilizing data.

When an abundant of people enter the store with the same characteristics an algorithmic-planed time the biometrics data collected will force the store to change stricture and shape. This will strategically reposition the store to who fits the majority of the traffic. This will also instigated the constant exploration of the store and product. More over this will increasing sales and units per transaction. Biometrics can determine a shopper’s gender, age as stated before, but most of all basic demographics ( This will be used in conjunction with digital signage/screens to tailor in-store marketing campaigns to customers. These will be positioned on strategically placed screens through out the store, in which the customer can also interact with.

Biometric system now available the cameras installed at the entrance records the arrival of the customer through facial scanners, this system can also help improve a retail location supply chain relationship by refurbishing only those goods that are in demand ( This date would be collected at the point of purchase. Biometric devices at placed at the entry way can pull up the customers buying history with the Adidas company and other vital information stored on the Adidas App. The information will come from a centralized computer and send this information for immediate replenishment on a real time basis ( This helps in reducing wastage and increases the productivity of the supply chain management on in store product. Biometrics will also be an advantage providing a high tech security protocol the increases loss prevention tactics ( This will benefit Adidas do to their high traffic nature.

Last year a company by the names of RBTE located in London showcased a many systems that can implement to help retail companies meet these capital, marketing, product reach needs. Biometrics allows a company to define their customer through conglomerate data ( For example Samsung partner Mediazest this presented the use of audio-visual tools including a system that can estimate people’s age based on video footage ( This allowed marketers to have a mathematical equation showing the number of shoppers to purchase to those who talk out of the store.

*Example Layout

considerations This form of technology is now making the retail market reconsider the way they invest in their company’s productivity. This type of technology can lead to strong communication and marketing efforts (The Science of Biometrics). The target will redefine a target audience challenging the old model of approach. This technology will be able to truly target and translate the real desires of customer (The Science of Biometrics). This creates and in-store solution with increased customer behavior understanding, marketing strategies, and developing communications of channels. Biometrics from both figure readers and facial scanners with provide a new 360 shopping experience and allow the customer to interact with a new shopping space. The store will be able to adopt the customer’s characteristics. What is a biometric recognition system? It is a computer system that is used to measure a purpose by the use of algorithms bases of a set biological characteristics and or behaviors (The Science of Biometrics). With these biometric sensors in retail setting it will allow for a retailer to cater to a customer in a new way by supporting their needs. Biometrics will also allow best product placement according to collection or designer team up. In total this will increase merchandising is effectiveness. This will allow our retailer to determine the impact of a floor window. Biometrics will allow immediate reactions formulating product plus resignation equaling sale. The overall system uses sensors and advanced software, that ultimately understand which customers come into a retail store and how they move in it move in a store (The Science of Biometrics). This type of software can map the busiest routes and times of day. The main value of this date relates to its effectiveness to translate data to alter a space to create a highly interactive space (The Science of Biometrics).

design of space

room 1/entrance

room 2/performance

room 3/neo

brand divisions / product assortment Globally, adidas sells products under 3 different divisions. The divisional strategy was developed to provide three distinct consumer segments with product and marketing concepts that fulfill their unique needs and desires. The 3 divisions are: The three-divisional set-up, established in 2000, has been very successful for adidas, allowing the brand to create products and concepts tailored to specific sports or lifestyle audiences while building equity for the adidas brand. This divisional structure was a huge success for adidas’ business development and brand positioning. Now, the divisional structure will be evolving (

“adidas has always been a part of sport and always will be. Sport is what brings all our activities and divisions together. The Sport Performance Division will always remain the core of our brand and represent the majority of our sales. But we are passionate about sport in all its forms, from performance to heritage to style,� said Erich Stamminger, Member of the Executive Board of adidas-Salomon AG, responsible for Global Marketing

sports performance division Sports Performance Division: “Innovate to Perform� This division is completely focused on the athlete who demands performance first and style second. Every sport is important, but the main categories of running, football, basketball, as well as the women’s segment, are the primary focus in terms of both footwear and apparel.

sport heritage division Sports Heritage Division: “Celebrate Originality� This division looks to our past for inspiration and direction for the authentic and contemporary products of the future. These are footwear and apparel products that clearly have a foundation in sport but are meant for lifestyle and streetwear.

sport style division The Sport Style Division is the “Home of Originals� This division is defined as authentic sportswear, the Fashion Group, which is the future of sportswear, and Style Essentials, the fresh sport-inspired label made accessible for style-adopting youth. Together they offer consumers products from street fashion to high fashion, all uniquely inspired and linked to sport.

execution plan Operations Hire Employees Training (Customer Service) Forecasting Customer Traffic and Products Compensation Planning Establish Long-Term Goals
























Technology Create New App Integrate New + Old App Establish Placement in Store Install Products Test Products Establish Product Maintenance Methods Training (Products) Marketing + Promotion Conduct Market Research Develop Marketing Plan Prepare Budget Press Release Enhance Social Media Presence Gather Employee Feedback Products Choose Product Assortment Product Placement in Store Dec-15
















































































activity map reasoning We have chosen to create an 18 month execution plan, for we know that we have many technologies to implement into the redesigned Adidas store. The creation and installation of technologies takes months, even years to perfect so we made sure to give ourselves a comprehensive timeline in that section. After talking to various web developers, our average timeline for the creation of a new app, and then integrating our that app with Adidas’ current app will take roughly 5 months each - if everything goes as planned. We wanted to start that development into our second month (April 2015) of planning so that if anything goes wrong, we will have time to perfect before the store opening. Operationally, we have chosen to hire and train our employees on the latter end of execution, for the technology will have to be installed, tested, and placed strategically throughout the store before anyone can use it. We felt that it was important to constantly be forecasting customer traffic and product selections from beginning to end of execution due to the nature of our store. While biometrics will solve this issue of forecasting what customer wants what product, that technology will not be of use to us until at least 2 weeks after the store’s grand opening. This goes for conducting market research as well. We want to identify what types of markets will be entering our store as soon as possible so that we can plan our product assortment and store layout accordingly. We chose to develop our formal marketing plan and preparation of our budget in the first 6 months (March 2015-August 2015) because we want to avoid any error in these areas from the get-go. After preparing a strict budget and marketing plan, we will be able to know where our store stands every step of the way. We decided to enhance Adidas’ social media presence at various times throughout our execution so that we can continually remind customers throughout the 18 months that the store is coming. Each block of time will correlate with store updates, giving the customer an almost “live-tweet” essence so that they feel they are a part of our process after each new development has been implemented. As for our product assortment, we feel that it will be a struggle to predict exactly what our customers want to see product-wise in the store due to the high traffic and high tourist area. We will plan basic product assortment from the beginning between the months of March 2015 and May 2015, and then again right before opening between July 2016 and September 2016. This will allow us to gather extensive market and customer research, thus predicting what the Broadway customer might want to purchase. We have aligned product placement in the store with the times we choose our products for the two have everything to do with each other. The product’s location in-store will determine who they are as an Adidas customer, what lines they purchase, etc.

market analysis


pestel analysis political






political • Adidas prides them selves on their strict policy to control and monitor hazardous substance to protect human health all the way to production stages ( • 97% of all goods are manufactured in China ( • The company works to eliminate PVC instead using substitutes like polyurethane, ethyl vinyl, and silicones thermoplastic rubber and keep a clean environment one of those is to eliminate ( • Adidas also looks to train their staff to the fullest providing training sessions equipped with HR system entitlement, basic health and safety education from the ground up ( Adidas also, “protects and supports the rights of its employees by following all the current employment laws” ( • Across borders Adidas looks to strengthen ties with Asia factories especially in their practices (

economic • Adidas is a multinational company and works with other countries to decrease unemployment, for example every year they increase the number of employees they host ( • The Industrial Production Growth was ranked with a one 1% increase in 2003 but as of 2012 it increased by 2% ( • Adidas does have many international sponsorships from soccer world cups to Olympic games this could be notes for the increase ( • Labor salary is high in Germany, France and the USA but not in China, specifically Suzhou. Suxhou is the home to Adidas factories hence their abilities to product large capacities at high turnover (

social • The Adidas target market is made up of people from different social backgrounds. • The Adidas Group is affected by both consumer’s and employee’s religion, race, culture, education levels, population, gender, buying habits and lifestyle. • Different religions such as Hinduism, Islam, Christianity, Judaism and more have different buying patterns and opinions for any products they buy. • The Adidas Group has penetrated most countries so all of these social characteristics play a very large role when developing and finalizing the company’s strategy. (

technology • Adidas product employ the best of the best in technology, ranging from bodymapping, climacool, climalite, climaproof, climawarm, goretex, flowmapping, and many more ( • Adidas created the world’s first smart shoes, adding a microchip inside the shoe and wireless mp3 player ( • Adidas recently released their “BOOST” running shoe. It provides a higher energy return than any other foam cushioning material in the running industry (

internet infrastructure in new york In 2011, Mayor Bloomberg introduced New York City’s first Digital Roadmap. Less than three years later, with 100% of objectives are complete, New York City’s Digital Leadership demonstrates the strides the City has made to date, driven by investments in infrastructure, education, open government, online engagement and technology sector support. Highlights include: • Enabling 300,000 low-income residents to access the Internet and adopt service since the introduction of the first Digital Roadmap. •Launching over 40 digital learning programs that have served over 1,000,000 New Yorkers to date, including Cornell Tech NYC on Roosevet Island. •Expanding the NYC OpenData platform from 350 public data sets offered at launch to over 2,000. •Relaunching a groundbreaking website and tripling the City’s social media audience. •Growing the City’s technology sector to over 1,000 Made in NY technology companies.

environmental • In 2011 Adidas was targeted by Green Peace in concerns with high levels of industrial pollutants being released into China’s major rivers like the Yangtze and the Pearl. With their high influence on the supply chain as brand owners, they are in the best position to influence the environmental impacts of production and to work together with their suppliers to eliminate the releases of all hazardous chemicals from the production process and their products”. • The Adidas Group has a sustainability venture capital fund called greenENERGY. Launched in 2012, the investmend fund has three goals: ( 1. Accelerate carbon reduction in global properties 2. Rigorously track project performance 3. Deliver a healthy return on capital

• According to Adidas for 2010 to 2015 they look to reduce the

• Since then Adidas sign on to the Detox Challenge but as of October

environmental footprint by 15% they plan to achieve this by priority

2013 has failed to produce results and in a report published

and manning the following resources:

January 2014 revealed chemicals in children’s clothing and footwear.

Save energy and reduce carbon emissions Save water Reduce the use of non-renewable raw materials, using more environmentally friendly materials Reduce waste Reduce toxicity, for example through using less hazardous chemicals and through efforts to reduce the pollutants in waste water at supplier factories Improve the environmental footprint of raw materials and products Manage supplier performance through auditing, measuring and reporting against key performance indicators. Use management systems to drive continuous improvement. Use management systems to drive continuous improvement.

legal • Adidas has made a clear stance that effect the quality of life of their

• Adidas has confronted the problem in the Indonesian factories,

stakeholders. From human rights, fair wages, child labor, freedom of

and has increased the pay and are taking the appropriate steps

association, health and safety, and chemical management. (adidas-

to easing the over time demands. They are collecting ID cards to

ensure that no one under 18 is being employed at the factory. Adidas also confirmed that a manager had been fired for sexual

• However, recently two factories Nikomax Gemilang and Tuntex factories, in the Indonesian capital have bend accused of using child labor, forced overtime and sexual harassment... • children as young as 15 were made to work 15-hour days • expected to work 70 hours a week and punished for refusal to work overtime • paid less than $60 a month, rates are below the International Labor Organization’s demand for living wages • penalized for taking medical leave and illegal deductions taken from wages as punishments for minor misdemeanors

harassment. (Guardian)

the key players As of this moment there are no fashion retailers that have employed biometrics. Though technological companies such as Samsung do such as, “S5 user links her fingerprint to her PayPal account, PayPal will authorize a biometric-enabled transaction only if the encrypted number sent from a device matches what PayPal has stored for that consumer” (Internet Retailer). Also companies such as a Best Buy want to implement biometric facial scanners for contract vital information of their customer. As of 2014 they are think of ways to implement such tactics. The way we want to implement biometrics is truly a new best practice. With in the last year mobile devices are increasing in functionality. Specifically we see this technology driving the biometric industry. “Biometric authentication. That is, leveraging the uniqueness of your fingerprints, palms, eyes (iris and retina), voice, face, hand geometry, signature and DNA to verify your identity” ( Before Biometrics makes it ‘big’ there are some major obstacles that need to be address. First company needs to look at the consumers and enterprises, first their needs to be a proven benefit for both parties ( The benefit in which we already address will create conveniences. We also see biometrics providing security ( Is the world really ready for such technology? The question is yes as long as biometrics is used to with transparency. People may not know the name but biometrics is present in almost all our phones, which was adopted in 2013 ( Though in, “the summer of 2012, tech research firm Gartner predicted that biometrics would enter primetime within two years. We’re right in that window now” ( Here is proof that the industry is moving toward biometrics, “Apple (AAPL). In July 2012, the company plunked down $356 million for fingerprint sensor maker AuthenTec (AUTH)” ( The new iPhone’s are expects to full utilize fingerprint sensor as a form of identification ( At the moment, “Intel (INTC) is working with a palm-scanning technology. And Intel’s venture capital arm also recently invested in a leading fingerprint sensor technology company, privately held Validity Sensors, Inc. Meanwhile, Microsoft (MSFT) recently filed a patent for a biometric sensor in its popular Xbox gaming system, which underscores a key point” ( Wall Street Daily also that more than 50 school districts and 160 hospital systems in 15 states are currently using palm scanners to verify identities. Also today we are seeing ATMs and now retails are thinking of ways to implement it all the way to transactions (

direct competition Adidas’s Direct competitors are Nike and Under Armour. Both Nike and Under Armour are aggressively pursuing wearable technology as well as other advanced pursuits and have the potential to move in on Adidas market. Nike is the leading athletic brand worldwide. They have been working with Apple to develop there Nike + software which is rumored to be incorporated with the release of the i-watch since the termination of the fuel band. With two powerhouses working together it becomes a threat to Adidas. In addition Nike is working on remodeling of stores as well. Their newest showcase store in London called the FuelStation. The space focuses on the movement of the customers. Some of the technology being incorporated in the store includes. •

LED walls that react to customers walking past by changing color from red to green

Kinect based installation that creates life-sized, digitized versions of customers

LCD wall reacts to movement and creates a unique piece of digital art which can be shared via social media

Augmented reality tools that feature interactive, animated product information

‘Digital mannequins’, motion sensitive intelligent mirrors that reveal film footage of local runners wearing key Nike products

iPads embedded in the store walls to provide product and event information, as well as access to for online purchases

A digitized treadmill that helps match shoes to running style

Under Armour is leading the way in wearable technologies. The recently acquired MapmyFitness is accompanied with one of the largest digital fitness communities, with over 20 million users. It is an iOS app that integrates with more than 400 fitness tracking devices. With all their focus in their wearable tec. their store experience has fell behind in comparison to its competitors. Ints newst store in Baltimore was their first Under Armour Brand House. Its Special Features include: •

UA Innovation Center highlighting Armour39™, the sports performance monitoring system

Interactive Digital Touch Screens for product and brand immersion

Jumbotron featuring the I WILL campaign

Largest depth of product offerings for men, women and youth in retail to date

Baltimore-exclusive product

indirect competition The athlete apparel industry would be sporting equipment, gym memberships, and sporting events. Spectator sporting events Generate 33.1 billion in revenue annually. The Number one spectator sport in the US. is football. The average ticket price is $77.34 . High ticket prices are driving people to watch the games at home. Attendance dropping by .4% from the previous year. How ever the Super bow alone grossed 157 million in ticket sales. An average American will spend $600 on a gym membership. With about 15% of the population holding memberships the nation spend around $2.6 billion per year on gym memberships. Although Athletes may have the right clothing the right gear is just as important and many times much more expensive. There is also the maintenance of the gear that is imperative for the athlete to perform safely.

Indirect competitor starting to use biometric finger scanning: Wal-Mart. The discount giant, and leading food seller, is studying biometric technology. Though once only commonplace in legal situations, fingerprinting is being used more in commerce. Institutions from banks to pawnshops are fingerprinting to authenticate transactions. Some gas station convenience stores only cash checks for those who ante up a fingerprint. "We wanted to eliminate the hassle of writing down all of the information: driver's license number, telephone number, Social Security number," says Ritesh Shah, owner of a Citgo station in Hapeville, Ga., that cashes up to 900 checks a week. Transaction processing time is less than 30 seconds, compared with three minutes before using the technology, he says. The increase in interest in biometric access stems from an increase in fraud involving more money, as well as a decline in the cost of the technology. The system costs about $10,000, experts say. (USA Today)

porter’s 5 forces / adidas Degree of Rivalry of ADIDAS Adidas is competing in the market with many rival firms including the world leaders Nike, PUMA, FILA etc. The rivalry among existing competitors is pretty high in the sports and footwear industry as compared to other similar industries. ADIDAS has adopted several strategic measures for their market growth such as acquisition of an existing competitor, building partnership etc. ADIDAS has grown into a world leader through several acquisitions; namely Sports Inc., Salomon AG, Reebok etc. In 2005, the ADIDAS acquired world’s third sports brand, REEBOK and this was a remarkable event in the history of the company, as it paved the way for the expansion of its market share. The Company ADIDAS has also benefited from the strategy of on-line sales. Though stiff and strict competition exists, the company growth is based on its brand-equity and brand identity. As ADIDAS deals with products of low product differentiation, the degree of rivalry is so high. Since the switching costs are low, the rivalry among competitors is very high. When dealing with products of competitive nature, the firm have to be highly innovative and the technology used should be of very advanced and sophisticated. This brings the fixed cost high and in turn increases the degree of rivalry among the competitors. The diversity of rivals, that is; the rival firms like NIKE, PUMA are of different cultural, historical and philosophical backgrounds and so the rival moves are very difficult to predict. Threat of Substitutes The substitutes of Adidas products such as NIKE, PUMA etc. is also affects the market growth of Adidas. The price of its substitute products often affects the products of ADIDAS, either in a positive or a negative way. When the price of the substitutes is low, the demand for the Adidas product will be low, and vice versa. That is when switching cost is low there is a higher tendency to lose its customers. However in certain circumstances buyer’s choice purely influences the buying decision and its demand. The degree of threat of substitutes is low in the case of Adidas.

Bargaining Power of Buyers Bargaining power of Buyers of Adidas products tends to be high these days. One of the reasons for this is that the buyers’ concentration is high, that means they buy large volumes. The ease of availability of its substitutes is one of the major reasons of the high bargaining power. The low switching costs to its substitutes also makes high bargaining power of customers. Price sensitivity and Product Differentiation also affects the bargaining power of buyers. Bargaining Power of Suppliers The suppliers for the Adidas products are available in plenty and so the bargaining powers of suppliers are low. Suppliers are weak because of high supplier concentration, that is; suppliers are far more than what is required. The other reasons are the easy availability of close substitutes of inputs, low switching cost from on supplier to another, backward integration of suppliers, weak customers etc. Moreover, the Adidas exerts a high power over the suppliers and is very demanding. Barriers to Entry The competition will become cut-throat when there is free market entrance. But such an established brand like ADIDAS will not be affected much. The entry barriers to the sportswear market are comparatively high. Any firm can freely enter into the market but survival in the market and to gain market leadership is quite difficult. When a new firm’s products are competing with such a huge brand name, it needed to be more cautious and have to adopt high quality strategies to gain the market. There are some barriers like High initial investments and fixed costs, Controlled access to the raw materials by Adidas, Controlled distribution channels by Adidas, Economies of scale, Government Policies and Protected Intellectual Property Rights like technical know-how

porter’s 5 forces / biometrics Introduction to the Five Forces Model ( The five forces and their determinants are: Competing sellers = Intensity of rivalry among competing sellers Potential entrants = The threat of entry Substitute products = Pressure by substitute products For example the German biometric market and industry are still in the Buyers = The bargaining power of buyers

introduction stage of the life cycle ( Mostly there is a high uncertainty amongst seller to the American markets all since

Suppliers = The bargaining power of suppliers

it is a new industry ( “The increasing number of sellers and the growth of public interest in biometric technologies

Intensity of Rivalry among Competing Sellers

are not yet reflected in sales. Since the market is still too small for more than a few sellers of the same biometric technology, and many

Today biometric sellers seek to meet customer needs better than

companies compete for few projects, the intensity of competition is

their competitors and set their competitors under performance

high� ( At this moment the market is entering

pressure ( biometric industry has

a growth stage in America therefore increasing market volume

different interests, needs, resource power, and resource allocation

( So far, brand identity of biometric products

than it did 10 years ago (

and solutions is low (

The Threat of Entry “New entrants threaten an existing industry with production and sales capacity, technology, know-how and other resources” (danishbiometrics. com). Entry barriers often found are regulatory policies, tariffs and trade restrictions due what can been as invasive technology (danishbiometrics. com).”The German biometric industry is seriously threatened by American and British biometric companies. Whereas German technology is highly competitive and attractive to foreign rivals, German manufacturers/ suppliers often lack sufficient finance to grow internally, acquire other companies or withstand acquisition threats. Particularly American companies tend to have more financial resources because the American biometric market is supported by the U.S. government” ( Right now the biometric industry in American has consolidated and has taken part in several mergers and acquisitions making them grow in size ( “In the last years, this has led to some acquisitions by American companies in Germany in key technologies such as face recognition, and continuously raises pressure on biometric companies already active in the German market” ( Therefore the threat of entry increases on account of the mentioned low brand identity of existing sellers. Pressure from Substitute Products “Substitute products represent a danger to established sellers because they threat the foundations of their businesses by substituting their products” ( These products could be other biometric or non-biometric technologies ( When looking at this technology it is quiet advanced and can take up to several years to research. When regarding new biometric technologies one has to relies they do pose a treat to existing technologies, though they can create new niche markets ( For example if we look at fingerprint, face and iris recognition become. They have become so specific it will be hard for new technologies to substitute them ( At this moment the risk of substitute is a low threat ( Bargaining Power of Suppliers “Since biometrics worldwide still lack standardization, suppliers are powerful once they have bound a system integrator to their technology. If a system integrator has decided for a certain biometric manufacturer, a change to another manufacturer is technologically difficult and causes high switching costs. This tendency increases due to supplier concentration” ( On the contrary, most companies are medium sized. “In many cases they are able to offer a moderate complete product lines and holistic solutions and depend on the system integrators’ projects, which diminishes their bargaining power. As a result, they possess medium power in the industry” (

Bargaining Power of Buyers A buyer’s bargaining power depends on the sales volume he creates, and it rises the more competing sellers are able to provide similar products because the customer could switch to another seller” ( The Biometric market is special and only exsists with buyers. With buyer awareness is gives them power ( The biometric sellers genrally have customer that are from the federal government and other authorities, and private sector customers, companies and private consumers. Today the only sales are from customers but in small volumes for example fingerprint sensors in laptops, phones, the power of individual private consumers is low ( On the other hand a large volumes of biometric sales are business to business. For example “governmental authorities and large private sector players, which empowers these potential customers. Sellers will fulfill all requirements and demands to participate in the expected purchases” ( Major potential customers in the next years will be: • The Federal Ministry of the Interior (BMI) with passports and ID cards ( • Large authorities and companies that need access control, time recording etc ( • “Governmental institutions take a hybrid role of customer and promoter at the same time” ( • “Since for governmental and other public customers high security is more important than low prices, this group has lower price sensitivity than private sector customers” ( • Buyer concentration causes high buyer bargaining power ( The biometric industry is entering the growth stage in both Europe but more so in America ( “Suppliers have certain bargaining power and threaten the system integrators with forward integration but are under pressure from potential new entrants themselves” ( As stated substitute technologies do not pose as major threats do to niche markets ( The American market for biometrics is booming, when it comes to business to business points of sale they are in large quantities but when to customer they are small scale (

target analysis


demographic segmentation Social Indicators

Demographics Race Hispanic/Latino 7.5% White 68.7% Black 2.7% Native American 0% Asian 18.1% Hawaiian/Pacific Islander 0% Other 0.4% Multiracial 2.5%

% male

0-9 years 10-19 years 20-29 years 30-39 years 40-49 years 50-59 years 60-69 years 70-79 years 80+ years All ages Median ages

% all

Marital Status

(among people 25 years or older)

(among people 15 years or older)

Less than 9th grade 9th-12th grade High school graduate Some college Associate degree Bachelors degree Graduate/Professional High school or higher Bachelors or higher

Age Male

Educational Achievement 8.3% 5.1% 9.3% 10.6% 2% 34.7% 30% 86.6% 64.6%

Never married Married Separated Widowed Divorced

53.4% 34.4% 1.3% 3.8% 7.1%

Stability/Newcomer Appeal Same home 5+ years 51.2%

Economic Indicators Female % female

% all

5.4% 2.7% 5.1% 2.5% 4.7% 2.4% 5% 2.5% 26.8% 13.4% 30% 15% 23.7% 11.9% 19.3% 9.6% 15.1% 7.6% 14% 7% 5.7% 11.4% 11.4% 5.7% 7.2% 3.6% 6.9% 3.4% 4.1% 2% 5.1% 2.6% 1.6% 0.8% 3.2% 1.6% 50.1% 49.9% 34.9 years 34.6 years

Both % all

5.2% 4.9% 28.4% 21.5% 14.6% 11.4% 7.1% 4.6% 2.4% 34.6

Household Income

Occupation (among employed persons over 16)

< $10,000 $10,000-$14,999 $15,000-$24,999 $25,000-$34,999 $35,000-$49,999 $50,000-$74,999 $75,000-$99,999 $100,000-$149,999 $150,000-$199,999 $200,000+

10.5% 5.3% 9.1% 7.5% 11.5% 17% 11.4% 13.7% 5.3% 8.8%

Mgt./Professional 65.8% Service 7.1% Sales/Office 19.3% Farm/Fishing/Forestry 0% 2.3% Construction/Mtnce. 5.5% Production/Transit Unemployment/Poverty *above U.S. average

Unemployed Below Poverty Line

4.1% 13.8% (ZipSkinny)

Demographics Traits Urbanicity: Urban Income: Upper Mid Income Producing Assets: Above Avg Age Ranges: <55 Presence of Kids: Family Mix Homeownership: Homeowners Employment Levels: Professional Education Levels: College Graduate Ethnic Diversity: White, Black, Asian, Hispanic, Mix

2013 Statistics US Households: 2,735,953 (2.30%) Median HH Income: $56,067

psychographic segmentation Understanding your target consumer is essential to building a successful brand. A lot of the time companies believe that a particular campaign geared towards American consumers will work on a global scale. When sales are not met, the funds spent on a big global launch have gone to waste. Adidas is constantly adding to their already established strategic brand that shows their knowledge of their target consumer. The Adidas customer is not black and white. Due to their varied product assortment, their customer range is broad. This range encompasses different genders, ages, and occupations. According to the VALS system, their customer most closely identifies with the believers, the achievers, and the experiencers. We have made three personas that we believe embodies the wide scope of Adidaâ&#x20AC;&#x2122;s customer base. (Forbes)

vals system ACHIEVERS Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery. With many wants and needs, Achievers are active in the consumer marketplace. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices. Favorite Things: Recognition and rewards Peer-group acceptance Material possessions Rules following that leads to success

BELIEVERS Believers are motivated by ideals. They are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation. Many Believers express moral codes that have deep roots and literal interpretation. They follow established routines, organized in large part around home, family, community, and social or religious organizations to which they belong. As consumers, Believers are predictable; they choose familiar products and established brands. They favor U.S. products and are generally loyal customers. Favorite Things: The familiar A close-knit family Traditional gender roles A religion-based life

EXPERIENCERS Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff. Favorite Things: A social-media following Being entertained Being established The ability to purchase

behavioral segmentation We believe that our initative is special in that it is an environment for the adidas brand to allow their current target customers a chance to discover something they might not have always seen, or known about. In our typical Adidas store with a constant set floor set, the following three consumers are who Adidas sees shopping at their other locations, making these profiles quite general. However, with our space - our goal is to allow target customers to discover new products; allowing them to shop the other brands just as openly. The constant discovery of products opens the consumer to find each area of the brand in a different way. Our focused user group is the sports and fitness conscious population. This segment is divided into gym regulars, professional and amateur athletes and even sports enthusiasts. Adidas has specific products for each of these sub-categories. Based on information gathered from retailers and adidas executives, it is clear that the major demographic segment that adidas targets is the age group of 15-35 years old.

persona 1 | sport performance AGE: 35 EDUCATION: College Graduate OCCUPATION: Entrepreneur INCOME: $250, 000 FAMILY STRUCTURE: In a Relationship

FREE TIME: Spending time with his dog, Playing pick-up game with his friends, SHOPPING HABITS: Online shopper

persona 2 | sports heritage AGE: 29 EDUCATION: College Graduate OCCUPATION: Mother INCOME: None on her own; $300,000 FAMILY STRUCTURE: Married, with two children SHOPPING HABITS: Thoughtout purchase decisions FREE TIME: Gardening, Yoga, Spending time with her Family, Cooking

persona 3 | sports style AGE: 22 EDUCATION: College Student OCCUPATION: Freelance Photographer INCOME: $90,000 FAMILY STRUCTURE: Single SHOPPING HABITS: Impulsive buyer FREE TIME: Going to concerts, socializing with friends, volunteering for charity of choice, obsessively updating her twitter account

communication & promotional plan


integrated communication plan The main objective is to first create a cohesive voice across the multiple media channels. That then will be tied together in one place through the new development of the AdidasBio app that is to enhance the consumer experience in the physical location of the AdidasBio store located in Soho, NY. Each platform, Facebook, Instagram, Twitter, YouTube, Pinterest, and Tumbler will deliver unique information design to engage the users across each channel. Facebook: is where Adidas keeps its consumers up today with what is next and new to the world of Adidas and sports. AdidasBio will start their announcements with Facebook announcing the news of the store. It will be the first spot to release the up to date information bout the opening, celebrity pop-ins and etc. Instagram: becomes a interactive collaborative space between the brand and its consumer. With the launch of campaigns like mi Adidas It allows for the customer to become a designer. AdidasBio will be posting behind the scenes construction, and sap shots of the movement of the store before opening to create a buzz. Twitter: is a place for customer service. Here Adidas can quickly identify needs of the customer and address them on a public platform. For the AdidasBio Twitter will be used to update consumers and answer any questions about the app or the physical location. You Tube: is a place were Adidas showcase its technology, performance, and innovation though film. AdidasBio will create a promotion video to explain the biometrics of the space and how it will move to enhance the consumer interaction. Tumbler: is product driven space allowing users to see the newest collaborations and products. Their will be a highlighted article on the Tumbler page about the AdidasBio store and exclusive collections. Pintrest: not only showcasing product but also highlights the celebrity athlete sponsorship. Here will be created a new board to collect images of the store and products to help the consumer visualize the AdisasBio store.

pre-launch •app •outdoor neo screens •social media Our app will be launched before the store is open so future customers can start to get excited, and familiar with the new technology. Our outdoor neo screens will be implemented months prior to the store opening so customers have something to look forward to. Social media updates will be constant througout the execution plan process, providing a clearly integrated channel of communication between brand and consumer. Along with Social Media AdidasBio will be publishing a few articles in the New York Times, The New Yorker, as well as through the Walls Street Journal, The Daily Fix sports blog, closer to our launch date. These articles will highlight the functionality of the space and give exclusive photos of the finished interior space.

launch â&#x20AC;˘adidas lab The Adidas lab has only been done once before in London. It is intended to be an ongoing series of innovation events that showcase adidas products of the past, present and future. The first event took place over the UEFA Champions League Final at Victoria House in London. Fans are given the chance to test unseen products first-hand in a range of high-tech interactive experiences. This is what we would like to implement for our storeâ&#x20AC;&#x2122;s launch party, which will take place the day before it actually opens (November 1). While the London store chose to focus on football (American soccer), we will be choosing to open an interactive space on each of our floors - one for running, one for football, and one for soccer. We will keep the soccer and running space open for two weeks after the storeâ&#x20AC;&#x2122;s opening, while we have strategically chosen to leave our football space open until the superbowl in February. We hope that this will bring good publicity to our store, as well as potential sponsorships of athletes involved in the future.


ROI = gain from investment (revenue) - cost of investment (expenses) / cost of investment *seasonal considerations and projected ROIs

2014 .015 2015 .965 2016 .967

financial plan


sales forcast for the new initiative 2014








Total Revenue






$42,330,427.00 Based on a 49.3% gross margin (Annual, 14)

EXPENSES Cost of Goods Sold Technology Research & Development


$10,000 per reader/2 total (Biometric Planet)

Figure Reader


$3165 per reader/5 total (Bioscrypt)

Computer System


App Development


$15,000 for development including app integration with micoach (Bluecloudsolutions)

Digital Screen


$10,000 per screen/6 total

Neo Screen


$23,050/2 screens

Staff Training


45 people (investopedia)

Store Launch


This includes all new technology for launch (Digest Dx3)



Building Renovation Electricity


$7000 for software & installation (Bioscrypt)


UNKNOWN Indicator unavailable


8.5 million; Based on Appleâ&#x20AC;&#x2122;s renovation of a single store (Asymco)



$99,960.00 Increased cost due to hydraulics in store
























































UNIT PRICE Prices increase with inямВation of 3%









2014 Daily Traffic




14,981,760 Predicted 2% annually


Annual Traffic


Increased Conversion due to…



Conversion (# of transactions)



Number of Units per Transaction/2.5



449,453 2.5 items per purchase (Annual)





449,453 (















3% Based on projections from report (Annual)

conclusion From its modest beginnings Adidas has come to be one of the leading sports apparel brands in the world only second to Nike. With the integration of the biometric technology Adidas hopes to approach on capturing a larger portion of the market. With the launch of the initiative in Soho, NY it allows for AdidasBio to reach a wide range of consumers with its high foot traffic of tourist. The analysis of large demographics will allow Adidas to improve upon its consumer experience in its brick and mortar retail. This will be achieved through the successful execution of the biometric technology, superb marketing strategy, and acceptance of the consumer.



perceptual map #s