1 2 Table of Contents Table of Contents……………………………………………1-2 Overview of Research…………………………………………4 Situation Analysis……………………………………………..5 Introduction………………………………………………………6 Company/ Brand History and Evaluation…………………...6-7 Product Evaluation…………………………………………...7-11 Consumer Evaluation……………………………………… 11-14 Competitive Evaluation……………………………………. 14-17 Market Evaluation…………………………………………..17-21 SWOT Analysis…………………………………………….. 21-22 Research Questions………………………………………… 23-24 Research I (Qualitative) ……………………….................... 25 Overview of the Study………………………………………… 26 Objectives of the Study………………………………………... 26 Project Details…………………………………………………. 26 Analysis of the Results………………………………………… 26 3 Research II…………………………………………………... 27 Background Investigation……………………………………. 28 Research Objective…………………………………………... 28 Research Methodology……………………………………… 28 Survey Research Findings………………………………… 28-29 Analysis of Research II Result……………………………… 30 Overall Findings and Suggestions……………………… 31-32 References………………………………………………. 33-36 Appendices………………………………………………….. 38 Research I………………………………………………………40 Research II…………………………………………………….59 4 Overview of Research 5 Overview of Research Yee-kicks has studied the behavioral patterns of athletic apparel consumers throughout the course of the semester. Understanding consumer profiles is vital for brand positioning and ultimately effective advertising. Yee-kicks conducted multiple focus groups in order to accumulate enough qualitative data to produce lifestyle patterns and draw conclusions on the participant sample. Focus groups allow brands to collect primary data on consumer behavior that is relevant to current brand strategies, which help brands like Adidas that exist in such a cluttered marketplace. Yee-kicks also released a public survey to collect valuable quantitative data which gives a raw, measurable representation of consumer attitudes, the procedure does have pros and cons, for instance the anonymity of the survey can be both beneficial as respondent’s came be honest with their feedback and helps to eliminate bias. In conclusion, 6 Yee-Kicks has worked diligently throughout the semester to provide our client with valuable qualitative and quantitative feedback in several different forms. 7 Situation Analysis Introduction The following is a situation analysis and market development plan for Adidas footwear, an athletic company devised to change the world of soccer, one cleat, one kick, one step at a time. Adidas offers a wide variety of apparel and equipment options personalized for fans and players of the FIFA World Cup as well as the average man taking a stroll through a park. This analysis features secondary data research to support our proposal to help expand the Adidas brand and logo further to gage the interest of a wider audience. Supported by both our primary and 8 secondary data analysis, this new development plan clearly explains our intent throughout the remainder of this paper. Consumer/Brand History & Evaluation Company/Brand History Adidas started by Adi Dassler in August 18th, 1949 beginning with shoes with three stripes. The three stripes served as the starting point to the widely recognizable and famous symbol for the Adidas brand the world sees today. In order for Adidas to become a success, Adi Dassler had to innovate and create new products. Dassler listened to what athletes had to say about the products, what they liked and what needed improvement to fit the athletes specific needs. At the 1970 FIFA World Cup, TELSTAR by Adidas was presented and became a phenomenon for the brand. TELSTAR became the official ball for the FIFA World Cup. The ball was created to increase visibility via television. Later in 1972, Germany was hosting the Olympics. Presenting an opportunity for Adidas to create a new logo, which was called the Trefoil. The Trefoil logo is still used today for the street collection. On September 6th, 1978, Adidas founder Adi Dassler passed away at the age of 78. Adi Dassler’s son took over Adidas and continued to successfully innovate new products (Adidas Group, 2015). Company/ Brand Evaluation “Through sport, we have the power to change lives. We work every day to inspire and enable ​ people to harness the power of sport in their lives. We also translate our competence in sports into streetwear and fashion because sport is an attitude and a lifestyle. Everything we do is rooted in sports” (Adidas Group, 2015). ‘Creating the New’ is the title of Adidas’s strategic method plan for the next 5 years. Between Adidas, Reebok and TaylorMade, Adidas is able to target different consumers with each brand. Adidas is targeted towards the athlete, Reebok is targeted towards people into fitness and TaylorMade is targeted towards golfers. Adidas has 3 main factors included in ‘Creating the New’: speed, cities and open source. Adidas adopted a fast process of identifying and responding to consumer needs. Along with having fast, 9 internal decision making. Adidas has a global plan constructed and focusing on specific cities to be part of the city culture, people and mind by opening market share and trend. One of Adidas’s other key factors is that they are the first athletic brand that invites athletes, partners, and consumers to contribute and be part of the brand. “‘Creating the New’ is an ambitious, yet realistic plan that provides the layout for our accelerated growth, both on the top and on the bottom line between now and 2020.” (Adidas Group, 2015) ‘Creating the New’ will cause the Adidas brand to evolve, adapt and innovate. Adidas is always finding opportunity to become a bigger and better brand in the marketplace. The CEO of Adidas Group, Herbet Hainer, stated in the first half year report: “The first half of 2016 has clearly shown that our consumer-centric approach as part of ‘Creating the New’ is paying off. The stellar financial performance in the second quarter is proof positive that we are true growth company that is winning in the marketplace across all categories, countries and channels.” (Hainer, 2016) The Adidas brand is continuing to grow. There is a significant increase in net income and sales. The average increase of net income for Adidas is 15% each year and their dividend payout will increase between 30% and 50%. (Adidas Group, 2015) Company/ Brand History & Evaluation Conclusion Adidas will continue to be a top brand for athletes and consumers. The company’s net income and sales will increase at an all time high on a global level. ‘Creating the New’ will be the strategic method that will keep Adidas at the top in the marketplace. “We truly believe that ​ acting as a responsible business – one which is fully committed to respecting human rights – will ​ ​ contribute to lasting economic success.” (Adidas Group, 2015) Product Evaluation The Adidas Group began 67 years ago and later formed its sisters company, Adidas North America, Inc. Today, corporate locations and manufactures are stationed in Europe, America and Asia. The corporation consists of 11 different sports brands under the major company. The most commonly recognizable brands under Adidas AG include Adidas, TaylorMade, Reebok (Adidas ​ ​ AG. MarketLine, 2015). Throughout 2015, Adidas produced over 660 million different types of cutting-edge athletic products to meet desires of various athletic performance and fashion demands (Hoovers, 2016). The main focus of Adidas is athletic apparel and equipment for men and young boys especially athletic shoes. (Hoovers, 2016) With the main focus on men, Adidas also produces women’s 10 athletic clothing and accessories. The Adidas Group is well known throughout the world selling products at a higher price range. Alongside multiple different sporting lines, the Adidas price range is not excessively high. Specialized gear such as soccer cleats and snowboarding shoes are examples of more expensive shoes than the standard athletic running sneakers. When the Products Are Used Footwear comes in various design which define their specific usage. Some Footwear products are casual use while other designs meant for sports related activities. Athletes tend to go for high end shoe brands such as Adidas and Nike because they are known to be of high quality. Nike and Adidas produce some of the best shoe design used by both men and women on field based on being consecutive top two brands in shoe wear. Most of sales made by major footwear companies are made from those who use them for sports related activities. Besides sports, footwear is also used for casual wear purposes (Tianbai, 2014). On Adidas website there are categories fit for lifestyle and walking which provides a recognition for consumers interested in the products but not for athletic reasons. Where Products are Purchased Most footwear companies operate through retail outlets to distribute their products to their consumers. Through a network of retail operations, Adidas has been able to reach a wider market distributed throughout the world. Today, Adidas is having plans of widening its market reach by opening more of its own network of retail outlets store (Ellen & Sara, 2015). The aim of this move is to ensure that consumers are given better service. Having more retail outlets allow shoe companies to interact directly with their consumers and get relevant feedback that can then be used to improve the quality of the products. Having a wider network of retail outlets allows companies to have full control of their brand image in the retail setup rather than getting mixed up with a variety of products in third