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COMPANY OVERVIEW
MARKET ANALYSIS
TARGET MARKET
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PRODUCT ASSORTMENT
BRANDING AND MESSAGING
MARKETING AND VISUAL MERCHANDISING
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Adidas is a brand that has a more distinguished history and stronger connection with sports, from the Olympic Games to the FIFA World Cup. As a global brand with German roots, adidas’ mission is to be the leading and most desired sports brand in the world. However, unlike other sports brands adidas has a broad and unique product portfolio, spanning from apparel footwear for professional athletes to premium fashion. This allows adidas to address multiple consumer needs, exploit market opportunities from various angles as well as being less affected by one-dimensional market risks. Adidas’ commitment to product innovation and its rich heritage differentiate the brand from competitors and provide a solid platform for future growth.
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COMPANY OVERVIEW
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MARKET OVERVIEW COMPETITORS Nike
Nike, the world’s largest sportswear company, they are in growth mode. 2007/8 revenues of $13.5bn were up 13% on the year before while gross margin increased by 16%. As it seeks to incorporate yet higher performance credentials into its products, this mass-market player is pushing harder into the swim wear and soccer areas. Nike focuses on the elite athletes and how to improve their performance with technology.
Puma
The outcome of the brothers’ split at Adidas and so also based in Herzogenaurach, Puma was, for a long time, a relatively small player in the sportswear sector. However, it gained significant growth and rising profitability in the early part of the decade when its products were increasingly worn by celebrities such as Madonna. Now, with a string of new golf, running and soccer products hitting the market, Puma is a strong player from both the fashion and performance perspectives.
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Sportswear is very big business. “In America alone, almost 90% of people under 35, and 76% of the population as a whole, buy at least one item of sportswear a year. Consumers benefit from a huge range of choice so brand awareness and credibility is pretty much everything. Marketing budgets have to be enormous because performance enhancing technology is considered the holy grail of any sports manufacturer. In addition, trends in health and well-being are acting as catalysts for change as governments and sports associations recognize the cost benefits of securing fitter, healthier nations.
ADIDAS STRATEGY Although adidas competitors are rooted in athletic performance wear, adidas wants to continue to diversify their product portfolios. The path adidas has been taking to expand their “creative ecosystem,” is moving into non-sport areas to strengthen their street style and fashion presence. With adidas’ plan to expand its fashion market equity, they will be moving into a very competitive and fast moving market. Working a long vertical retailers like H&M and Zara that move in new product every few weeks. With the creation of a more contemporary assortment adidas has to differentiate itself. Adidas differentiation is through collaborations; they create short-lived assortments of 10 – 20 apparel or footwear pieces that are sold in its entirety.
MARKET ANALYSIS
INNOVATION DRIVERS To capture further potential in the sports industry fashion market adidas has created sub-brands Originals and adidas Sport Style. Street wear and lifestyle sports fashion represents a unique opportunity for sporting goods companies. Adidas has been successful in this market segment because of brand credibility and heritage as an important prerequisite. Originals consumers are constantly looking for substance and craft and are inspired by passions and stories which we serve through iconic trefoil logo with products such as the Stan Smith, Superstar , Samba and ZX. Adidas retains success with keeping up to date with and setting trends as
well as remaining committed to serving consumer groups who are looking for options to express their individuality.
STRATEGIC PARTNERSHIPS The adidas Group is constantly evolving its partnership network within sports and culture, with academic organizations and other industries in research and development, designers in the fashion industry, other brands and non-traditional sporting goods retailers. To add to the long list of fashion designer collaborations, adidas will be adding New York based brand, Public School to their line up. The collaboration will work along the sub-brand Originals. Originals sub-brand is a hub for creativity and collaborations with a unique point of view. 7
Adidas Originals is not all about sportswear anymore, this brand has embraced creative expression with street wear. The positioning of the Originals brand supports creative expression and is the clothing of choice for passionate creative people. Public School is on the tip of everyone’s tongue right now because its authentic embrace of American state of mind. A didas is in need of regaining its market share in North America. What better way to do so then by working along the Public School brand to create a new exciting assortment. This assortment will feature sporty pieces that are familiar to the adidas aesthetic but a bit sophisticated. Public School with be bringing a upscale look to the adidas brand, that mixes both high fashion and street wear. The twelve piece collection is sure to energize the North American consumer into buying with the Adidas brand. Adidas is a brand that has big commercial success and sales volume. Public School is a cool designer brand that has creditability. Public School offers its credibility whilst adidas lends in volume, creating a successful commercial collaboration. Public School will be infusing their elevated street wear and tailored looks with adidas sports performance archive.
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PUBLIC SCHOOL FOR ADIDAS
TARGET MARKET Creative athletes, artist, musicians, dancers, and fashionistos, the generation who are embracing the art of creative expression. DEMOGRAPHIC Gender: Male Age: 18 -35 years old Income: $25,000 - $60,000 Geographic location: New York, Atlanta, Los Angeles and Chicago
PSYCHOGRAPHIC Attentive to trends Active on social media Technology savvy Listens to reviews from peers before making buying decisions
INTEREST Enjoys events such as art exhibitions, fashion shows, sports games and music gigs. All the events are reliant on word of mouth through social media as well as targeted advertising.
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Designers Dao-Yi Chow and Maxwell Osborne, born and raised in New York City, represent the convergence and restless energy of the city in which they live and work. Found in 2008, Public School is redefining the landscape for menswear and women wear. The design duo blend high and low references from fashion, music and art to create a point of view that is both unique and precisely detailed. Public School recently won the International Woodmark Prize which they were the first American label to receive the award. In 2013, Public School was honored with the CFDA Swarovski Award for Menswear. In November 2013, they were named the winner of the prestigious 2013 CFDA Vogue Fashion Fund Award. Currently, the Public School collections are available at major department stores and specialty boutiques including Barney’s New York, Harvey Nichols, Isetan, Odin, MaxField, and Louis Boston.
Color
Lots of black and white with a gradual influx of color Main color palette white, gray tones, forest green and navy
Silhouette
Oversized and Elongated Technical and athletic wear Sharp Tailoring Relaxed Causal
Details
Zippers Paneling of Color Strong Prints
Overall Aesthetic
Urban Lifestyle with Modern Fashion
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COLLABORATION
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MERCHANDISE ASSORTMENT
PRICES Blocked Sweatshirt $100 Blocked Sweater $90 Elongated Vest $250 Blocked Woven Tee $ 80 Poll Neck Vest $200 Long Bomber $225 Parka $275 Sports Blazer $190 The combination of sportswear and street wear is an important element, smartened up through design for a more contemporary look in this Spring/Summer 2016 collection. Statement outerwear is the central focus just like in Public School’s collections. This collaboration updates and elevates “on court and field” classic silhouettes like the jogger, tracksuit and the bomber. The silhouettes have been infused with tailored details as well as being elongated and oversized referencing street wear. This line was inspired by geometric shapes and lines to create subtle color blocking.
Track Warm Up $150 Tailored Jogger $130 Loose Trouser $125 Leather Jogger $110
The collection will be released on March 3, 2016. At the end of Winter and right around the corner for Spring. The collection can be purchased adidas.com, and at all Adidas Originals locations.
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LOGOS
These logos will be used for the tags, clothing and branding. The vertical logo will be placed on the outside of the clothing, outside of the box that logo will be used for branding. The horizontal logo will be used for the hangtags inside of the clothing.
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BRANDING AND MESSAGING
PRESS To create anticipation and buzz, press releases will be sent out three months prior to the release of the collection to the following blogs and websites that our target consumer reads.
Adidas will be doing a multi-media campaign, to engage with the target market. The collection will be placed on the adidas Originals social platforms, Twitter, Facebook, and Instagram as well as the Public School’s platforms. The collaboration information will be featured on adidas.com and their blog. These photos of the design duo will be used on social media platforms to inform consumers of the upcoming collaboration prior to look-book creation.
COMPLEX.COM GQ.COM HIGHSNOBIETY.COM HYPEBEAST.COM NYTIMES.COM TMAGAZINE.COM NYMAG.COM DAILYHERALD.COM FOURPINS.COM THEDROPNYC.COM The look-book for the collection will be released a month and a half prior to the collection release date. Once the lookbook is created the following blogs and websites will receive another press release with that information. Once the look-book has been seen by consumers heavy promotion of the collaboration will be seen on social media and adidas.com
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SOCIAL ENGAGEMENT Digital communication is going to be a huge part of brand awareness for this collection. The hashtag #PSNYXADIDAS will be used when promoting the collection on all social platforms to create conversation about the collection prior to the release date and after.
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MARKETING
VISUALS The lookbook concept will be inspired by the creative adidas consumer in their natural element. Similar to the sports performance sub-brand creating look-books of athletes doing what they do best, being active. This look-book will showcase creative individuals in the act, weather it be performing or creating. The look-book will be a combination of black and white contrast and low saturation candid shots.
MARKETING EVENT To further push the promotion of the brand and get customers excited about the collaboration adidas will be hosting a line presentation event. The line presentation will be located in New York at the adidas Originals Soho location. The Soho location carries the iconic styles as well as the newest collaborations and designs. The collaboration will have Hannah Bronfman working as the DJ and hors d’oeuvres served while consumers shop the collection and meet with the designers.
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The store visually for the line presentation will be stripped down to a black, white and gray tonal color palette mimicking the collection. Adidas wants to provide the customer with the experience that they are purchasing this collection from a cool underground boutique. The clothing racks and hangers will stay in the same color palette. The lightening will be bright with an exposed ceiling. The overall aesthetic will be clean and modern. All mannequins will be replaced with real models wearing the adidas by Public School collection paired with adidas Originals footwear.
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VISUAL MERCHANDISING
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http://www.adidas-group.com/media/filer_public/e2/d7/e2d789a1-2e16-4a4c-97fc-e8d7c18fef2f/investor_day_es_ global_brands_final.pdf http://www.adidas-group.com/media/filer_public/2014/03/17/adidas_lb_2013_en.pdf http://www.fashionunited.co.uk/fashion-news/fashion/clash-of-the-fashion-titans-adidas-vs-nike-2014090422281 http://www.brandfinance.com/images/upload/sportsfull.pdf http://www.adidas-group.com/en/investors/strategy/global-brands-strategy/
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WORKS CITED
Annastasha Willis March 6, 2015 430 Professional Practices
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