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.

 Indiaproduces 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 of abundant raw material base

 Large domestic market and

 The opportunity to cater to world markets

1. Category
Men’s Shoes - 45 %
Ladies shoes - 40 %
Kids shoes - 15%
Branded - 42 %
Unbranded - 58 %
 FRONTRUNNER has a sensor placed under
the sole and comes with a portable digital
indicator.

 Theindicator 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.

 Ituses 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-Shock-

Absorption 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.

 Thenew 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 Rs 225

TECHONOLOGY
USB Kit Rs 145

PERFUMED STRIPS Rs180

PACKGING Rs 35

TOTAL Rs 2410
 Market skimming
 
 Thepractice 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.