Presented By: Abhigyan Mishra Amanpreet Kaur Ahuja Krishanu Bose Pramod Kumar MFM(1st Sem)
New product launch means introducing a new product into the market. In other words, it is adding a new product in the existing product line of the company.
A new product launch is an important aspect of product policy and product management.
For
expansion of business, time to time launch of new products is very necessary.
ADIDAS launches front runner in India. The product, a cross training sports shoe will be sold under the brand name FRONTRUNNER. They come under the category of consumer goods for fitness and health.
The basic idea behind launching this product is to help out in making calculated and well monitor workouts.
An
idea of freshness as with shoes customer will be provided with 20 perfumed strips that make you to feel fresh even after using the shoe for long hours.
Adidas Ltd is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylor Made-Adidas golf company, and Rockport.
The
company is the largest sportswear manufacturer in Europe and the second largest sportswear manufacturer in the world.
The company revenue for 2006 was listed at €10.084 billion, or about US $13.625 billion and the 2007 figure was listed at €10.299 billion, or about $15.6 billion.
To
become the best sports brand in the world. To that end, never equate quantity with quality.
STRENGTH
-
Result oriented approach. The brand is going to be well accepted
-
in the country. Quality and Comfort. Perfume strips (Launched for the first time)
WEAKNESS
- We may be unable to achieve projected sales. - Varied consumer preference.
OPPORTUNITY - The market is always open for innovation. - Participation within a growing market. - High penetration levels. - The large increase in customer base that follows with the acceptance of the product by one customer. - Changing needs of customers. - Innovation according to the changing preferences of the new generation.
THREAT
-
Existing players in the market. Chances of idea of product being copied. Change in consumer preferences.
The
Indian footwear market is estimated to be about Rs 10,000 crore in value terms and is growing at 10 per cent annually India ranks second among the footwear producing countries next to China. India
produces more of gents’ footwear while the world’s major production is in ladies footwear.
What makes India makes India an attractive destination for Technology and Investments….
Availability Large The
of abundant raw material base
domestic market and
opportunity to cater to world markets
1.
Category Men’s Shoes Ladies shoes Kids shoes
- 45 % - 40 % - 15%
Branded Unbranded
- 42 % - 58 %
FRONTRUNNER
has a sensor placed under the sole and comes with a portable digital indicator.
The
indicator keeps track of the distance covered and the speed at which you walk/run.
Foam
based foot contour
The foam which is made of polyurethane that adjusts the lowest layer of the shoe by spreading itself according to the different shapes and sizes of feet to give it a complete snug and cushioned fit.
Polyurethane
is a unique material that offers the elasticity of rubber combined with toughness and durability.
It
uses Triple-Shock-Absorption technology which provides long term light weight cushioning.
Perfumed
strips placed under the soles to keep your shoes and feet smelling fresh as ever.
DRY-TEC-PUR
- insole for best climate control Techno Gel - Techno gel-pad with excellent shock absorbing features. Latex-Pad - Latex-pad, integrated in the PU-insole for a smooth step
Mainly in the heel area an enormous pressure arises, which will be led directly from the foot the spine and the joints.
By
the construction of the new Triple-ShockAbsorption it comes clear, how to block the pressure and to absorb it by the 3 components. The extremities will be released considerably.
ADIDAS
not only offers comfort and enables you to make a fashion statement but takes care of your health too…
FRONTRUNNER provides an armband to place the digital indicator.
FRONTRUNNER
comes with a small portable digital indicator which displays the distance covered (km) and the speed (km/ph).
To
keep your shoes and feet smelling fresh Sesmo comes with 20 long lasting perfumed strips which can be placed under the soles.
MAXIMUM SPREADING OF THE PRESSURE Mainly in the heel area an enormous pressure arises, which will be led directly from the foot the spine and the joints. The
new Triple-Shock-Absorption, blocks the pressure and absorbs it by the 3 components.
The
extremities will be released considerably.
The curvature of the spine and damaged discs are the consequences of missing shock absorption.
Therefore the foot contour technology comes to good effect.
The
foam based polyurethane forming he lowest layer of the shoes adjusts according to the various shapes and sizes of feet. This is essential to get a complete fit of the shoes.
Segmenting Variables Geographic Country-INDIA Region-Metropolitan cities and cosmopolitan cities (Mumbai, Bangalore, New Delhi, Chennai, Kolkata and other important cities.)
Demographic: Age -
15-60 Gender - Male, female Occupation - College going youth and working population Social Class - Upper-Middle class and Upper class.
PSYCHOGRAPHIC
Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. LIFESTYLE
Outdoors Oriented.
Behavioral: Occasions:
Regular and special occasions Benefits : Convenient and economical Attitude
towards product: Enthusiastic
Targeting strategy or targeting is the selection of the customers you wish to serve.
The decisions involved in targeting strategy include: •Which segments to target? •How many products to offer? •Which products to offer in which segments?
AGE -15 years-60 years
GENDER
-Male and female
LIFE
CYCLE - Sports personality, youngsters, married, unmarried
OCCUPATION
-Sportsman, students, fashion oriented people, adventurous
SOCIAL
CLASS Upper middle class, upper class
Market positioning means the process by which marketers try to create an image or identify in the minds of their target market for its product, brand, or organization. The type of positioning used by us is double benefit positioning: -Complete monitored fitness -Odor free
The price is the amount a customer pays for the product. Price is the only revenue generating element amongst the 4ps, the rest being cost centers.
PRICING
OBJECTIVE-To Maximize Profits -To Meet a Specific Target Return on Investment -To Achieve a Target Sales Level -To Maintain or Enhance Market Share -To Meet or Prevent Competition
PARTICULARS
COST PER PIECE
RAW MATERIAL & LABOUR
Rs 850
BLUTOOTH INSTRUMENT
Rs 625
WRIST BAND
Rs 350
SHOCK ABSORPTION TECHONOLOGY
Rs 225
USB Kit
Rs 145
PERFUMED STRIPS
Rs180
PACKGING
Rs 35
TOTAL
Rs 2410
Market skimming The
practice of ‘price skimming’ involves charging a relatively high price for a short time where a new, innovative, or much-improved product is launched into the market.
PRICE
RANGE- RS4999 onwards
We
are planning to launch FRONTRUNNER in exclusive outlets located in the Metro cities as well as also through the Adidas exclusive outlets in order to minimize risk and initial expenses
TV
Adds Print Media Hoardings Posters Radio Adds Internet Adds Collaborating with health and sports clubs. Sponsoring sports activities
FRONTRUNNER will be hosting a launch party to open the first store in Mumbai. Our brand ambassador will be Sachin Tendulkar. A large screen will be set up at the venue. Sachin would be shown running towards the store wearing FRONTRUNNER.
FRONTRUNNER also has a launch offer: It includes membership points.
SILVER MEMBERSHIP can be bought with 2 pairs of shoes. Along with that one dry- clean session for your shoe will be done. Discount coupons will also be provided to buy perfumed strips in the future. GOLD MEMBERSHIP includes 2 dry clean sessions and a 1 year warranty for your digital indicator. It also gives you a 15% discount on perfumed strips.
Indian
branded sports shoes industry is sized about Rs650cr and expected to grow about 700cr by 2010. Approximately 55% of Indian branded sports shoes market is dominated by Adidas along with Reebok and expected to have revenue of around Rs400cr by 2010 end. We are expecting to contribute FRONTRUNNER about 4-5% of total sales of Adidas generating about Rs35-40cr sales by 2010 end.
