Adidas x The Sims 4

DID PRODUCT PLACEMENT IN A VIRTUAL WORLD JULIETTE DRAPER

ID: 18020979 FINAL MAJOR PROJECT BA FASHION MARKETING LONDON COLLEGE OF FASHION

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Acknowledgments Firstly, I would like to thank Minal Kay Malik for being my supervisor, she has been encouraging, helpful and insightful throughout my project. She has guided me throughout my work and I am grateful for her advice and wisdom.

Secondly, I would like to thank Chris Goodlet my partner, he has supported me through every step of my final project. I appreciate all the time you have given to help me with my work and always supporting and encouraging me.

I would like to give a special mention to The Sims 4 Community for helping me with my work. Your support and participation has helped me greatly throughout my project.

Lastly, I would like to thank London College of Fashion and Middlesbrough College for giving me the opportunity to be on the Fashion Marketing and Fashion Business and Retail courses. It has developed my skills as a marketer and helped me flourish academically. I have loved my 6 years of education, and I am proud of what I can achieve. Special thanks Jane Rutter and Laura Pearn for being brilliant teachers.

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Project Summary This purpose of this project is to create an Adidas x The Sims 4 collaboration. The digital artefact will consist of co-branding, product placement and immersive experiential marketing. The mutually beneficial venture will create revenue whilst increasing brand loyalty and brand awareness. The artefact will come in the form of a ‘Stuff Pack’ which contains 26 fashion pieces and costs £9.99. A single use discount code of 35% off Adidas will be given with each pack that is purchased. Due to the nature of a digital product, the artefact will have unlimited stock, an infinite shelf life and no textile waste. The project will use online and offline approach to create a multi-channel marketed artefact.

The Sims 4 is it the largest life simulation game in history, reaching 32 million players in 2021. Despite this, The Sims 4 would massively benefit from exposure to 11% of the sporting goods market. Adidas is a leader in fashion technology however has only scratched the surface in the gaming industry. This artefact demonstrates an opportunity for Adidas to maintain to a competitive position against their biggest rival Nike, which featured in the most profitable game of 2019. The report finds the collaboration will benefit both brands by linking their core strengths and reinforcing character through expression of positioning.

An examination of the external market revealed fashion in video games is over saturated with luxury brands, which does not represent all customers tastes. Research has highlighted gamers enjoy realistic gameplay to emulate their personalities online. The report finds that there is a gap in the market for low priced brands to penetrate the gaming industry. The gaming industry is worth almost 160 billion dollars which is more than the music and film industry combined. This vast market is often overlooked by the fashion industry in comparison to music and film. The gaming industry can offer thousands of hours of non-intrusive product placement to fashion companies. Primary research showed that 78.84% of Sims 4 players have played over 900 hours.

A survey of 1150 Sims 4 players called attention to the 78.85% would like to see Adidas in The Sims 4. Many players download unofficial Adidas clothing for their Sims to wear, some outfits have 340,000 downloads. This highlights the customer hunger for an Adidas x The Sims 4 collaboration. These findings reduce the risks of the artefact substantially. Examining the costing aspect, the artefact has an estimated revenue of 128.8 million and a return on investment of 13043%.

By implementing the artefact both brands would receive a plethora of benefits including, a large return of investment, extensive product placement, a sustainable source of income, increased brand loyalty, brand awareness and content stakeholders.

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Contents Summary 5- Rationale 7- Value Proposition Canvas 8- Target Market 10- Internal Analysis – Adidas 12- SWOT Analysis 13- Marketing Mix 14- Market Segment 15- Core Products 16- The 4 M’s 17- Internal Analysis – The Sims 4 19- SWOT Analysis 20- Marketing Mix 21- Market Segment 22- Core Products 23- The 4 M’s 24- External Analysis – Size, Growth and Forecast 25- Porter’s 5 Forces 26- Market Competition and Market Growth 27- Demand, Risks and Opportunities 28- PESTLE 29- Demand Drivers and Future Market Position

40- Primary Research 42- Artefact Development – Contents of Artefact 46- RACE Model 47- Socia Media 49- Influencers 51- Outdoor Marketing 53- Email Marketing 54- Costings 57- Opportunity 58- Risk 60- Sensitivity 61- Conclusion 62- Bibliography 71- List of Figures 72- Appendix 1 74- Appendix 2 78- Appendix 3 79- Appendix 4

30- Strategy Summary – Value Chain 31- Ansoff Matrix 32- Co-Branding 34- The Benefits of a Digital Product 35- Product Placement and Immersive Experiential Marketing 36- Discount Code 38- Target Market 39- Future Competitive Position

CONTENTS 4

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RATIONALE The fundamental purpose for the development of this concept is to introduce Adidas into a virtual video game. This concept will include marketing techniques such as co-branding, product placement and creative interactive marketing. As a strong trio of techniques, the chosen fashion brand which would be adequate in resources and experience to execute this concept is Adidas (Statista, 2021). As an industry leader in its market, the brand is looking towards the future of fashion (Danziger, 2021). The aim is to showcase Adidas in its best light through a digital immersive platform. Both brands often utilise collaboration as a key element to their marketing plan and therefore it will prove beneficial throughout the development of the proposed artefact (Jackson, 2020) (Adidas, 2019).

The Brands

One of the Top 50 Best Selling Games of All Time, The Sims 4 are already experienced in the 3 marketing techniques, co-branding, product placement and creative interactive marketing (Favis, 2020). It would be advantageous for a mutually beneficial collaboration between the two brands.

The Sims 4 is a neutral game allowing players to control the lives of an ordinary person’s everyday life, thus being a platonic platform with no negative aspects (extreme violence, drug use, bad language etc.) that may affect Adidas’s reputation (The Editors of Encyclopaedia, 2021) (Pegi, 2014).

Adidas is a leader and one of the most successful brands in the sports apparel industry (Statista, 2021). Owning 11.4% of the sporting goods market, Adidas have

substantial wealth in resources to execute the proposed artefact (Statista, 2021). The chosen fashion brand has the marketing intents to propel co-creation, ele-

evate customer experiences and push the boundaries of sustainability within new environments (Adidas, 2019).

Affluent in innovative technology and fashion, Adidas would benefit greatly from a digital fashion collection on this scale (Danziger, 2021).

Product and Service The product which the collaboration will complete is a digital Adidas collection to be sold as a ‘Stuff Pack’ to The Sims 4 players. The joint venture will give players the opportunity to create a more realistic wardrobe for Sim’s 4 avatars to wear in game. Stuff Packs have an average of 26 digital fashion items per pack and cost £9.99 at retail (EA, 2021). Once the Stuff Pack is purchased, the user will be given a single use 35% discount code to spend online with Adidas. The product will be available to purchase for as long as The Sims franchise exists (EA, 2021). First published in 2000, The Sims franchise will encourage decades of sales for the artefact (EA, 2021). 5

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SMART TARGETS AND AIMS THIS PROJECT AIMS TO INCREASE REVENUE THROUGH DIGITAL DOWNLOADS WHICH LEADS TO PHYSICAL PURCHASES. SMART Objectives: 1.Gain 60,000 downloads within first 4 weeks of launch (December 2021) 2.Achieve 8,000 sales purchased with unique discount code (February 2022) 3. Achieve 1,000,000 social media interactions for the campaign (October 2021 to January 2022)

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BENEFITS The artefact will give players the ability to dress avatars (Sims) in official Adidas clothing.

FEATURES Adidas and The Sims 4 will collaborate to create additional content in conjunction with The Sims 4 game for £9.99. The artefact will also feature a single use discount code of 35% to spend with Adidas.

Players enjoy brand collaborations as it gives the ability to dress Sims in brands they know.

Players enjoy having a full collection of additional Sims 4 content.

Customers will have access to exclusive collaboration.

It will give players an added sense of reality into the life simulation game whilst giving players the opportunity to express themselves and mirror their own lives.

FEARS Player may be disappointed with product, may not fit with game and aesthetic.

NEEDS

The artefact will be low priced.

The 35% discount will be an incentive. Will always have access to content – long term purchase.

COMPANY: ADIDAS & THE SIMS 4 PRODUCT: THE SIMS 4 STUFF PACK IDEAL CUSTOMER: NORTH AMERICAN

WANTS

EXPERIENCE

18-34 FEMALE

SUBSTITUTES

Modder’s create custom unofficial Adidas clothing available for PC players only – risk of viruses for users and game crashing.

VALUE PROPOSITION

CUSTOMER

PRODUCT

VALUE PROPOSITION CANVAS (Osterwalder et al., 2014) 7

PEN PORTRAIT Pen Portrait Name: Rachel Hofstetter Gender: Female She/Her Age: 28 years old Income: £45,000 a year Education: University degree in Spanish Language Social Status: Middle Class Family: Mum, Dad and 2 brothers who she sees often Life stage: Finished her degree which she does not use and has been self-employed for the past 4 years doing a job she loves. She lives alone in an apartment, saving to buy a house but looking for a long-term relationship first.

Occupation: Self employed as a streamer, makes money from brand deals selling her own merchandise and advertisement revenue.

Location: The city of LA, USA Area: Rachel lives in an apartment in the city centre

Climate: A Mediterranean climate Population: 3.96 million (LA) Language: English

Lifestyle: Rachael has an extremely flexible career which gives her the ability to make time for friends and events whenever she chooses. She likes to have friends over for take outs and down time but enjoys the days to herself. She has made a career from gaming which is her favourite hobby. Her clothing is usually comfy, modern and compliments her figure. She loves athleisure.

VALS: Rachael is a thinker, she values knowledge and creativity.

(Strategic Business Insights, n.d.)

AIO: Activity – Going to the gym, gaming, ordering takeaways Behavioural Rachael has a high amount of disposable income for someone her age, this leads her to makes impulse purchases.

The target customer is very brand loyal and will shop and recommend trusted brands frequently. The target customer is accustomed to using her bank card online. Rachael’s career is playing games, including The Sims 4. She has been a fan of The Sims 4 since it was released and has played The Sims throughout her childhood.

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The collaboration will be targeted towards female 18–34-year-olds. This is to align with The Sims 4 consumers to ensure the artefact is catered to existing players rather than a new market (Lewis, 2017). This market is passionate about sustainable fashion, self-care and technology which resonates with the experiential marketing techniques used within the artefact (Estacio, Whittle and Protheroe, 2017) (Vogels, 2019). 18–34-yearolds are most likely to be financially independent or starting to make their own purchasing decisions which will encourage sales of the artefact (Barroso, Parker and Fry, 2019).

TARGET MARKET SEGMENT

The Sims 4’s is most popular within North America which conveniently produced 24% of Adidas sales in 2020, suggesting this should be the target demographic for the brand collaboration (Statista, 2021) (Gamstat, 2020).

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Opportunity and Challenges Adidas, a leader in the fashion industry, pushes the limits of what can be achieved for the future of fashion (Danziger, 2021). The sports apparel brand has no boundaries due to collaboration, innovation and technology (Danziger, 2021). Owning 11.4% of the sporting goods market, Adidas’s global reputation has established them as pioneers in the fashion industry for innovation and technology (Johnson, 2021) (Russel, 2018). Adidas CEO Kasper Rorsted spoke openly about their successes and declared “we have been and will continue to invest very, very heavily into our digital business model” (Rorsted, 2018).

There is opportunity to work with EA as Adidas has already affiliated themselves with the gaming brand and have a strong relationship (EA, 2020) (Reyna, 2021). The pair have worked together on the sports game FIFA, including their own range in the game mode Volta (EA, 2020). With a mainly male demographic focusing solely on football, The Sims 4 opens the opportunity for the female target market (Northman and Leon, 2020) (EA, 2021). Expanding with digital content focused solely on the brand and its values on a platform which can permit it to a new market may be very beneficial for Adidas.

a famous Fortnite streamer (Adidas, 2020).

Adidas said that “the partnership may lead to products in the physical or virtual world.” (Peters, 2019). Already accumulating knowledge on the virtual gaming industry, its potential, size and opportunity, Adidas has established the basis to grow its foundations within this market (Peters,2019).

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A large challenge for Adidas is competition from outside brands who are doing the same thing (Russell, 2019). Nike has also been featured in FIFA, demonstrating the non exclusivity that the video game holds (EA, 2020). Nike previously have had it’s own exclusive feature in a video game whereas Adidas have not had this oppertunity. (Nory-Williams, 2019). Another challenge Adidas should be mindful of is trying to make the artefact’s content and marketing resonate more with players than Moschino’s Sims collaboration (Fowler, 2019). Adidas would need to research their best-selling clothes and player-made Adidas cloth-

Figure 1.

INTERNAL ANALYSIS

There is opportunity for streamers to promote content through paid partnership (Miceli, 2019). Adidas have had previous success signing and collaborating on more than one collection with Tyler Blevins (Ninja),

Figure 2.

ADIDAS

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FORM THE FUTURE Current Marketing Strategy Create the New Adidas’ current strategic marketing strategy is to ‘increase brand credibility, elevate the experience for our consumer, and pushing the boundaries in sustainability’ (Adidas, 2021). Adidas are trying to increase their creative capital through co-creation by using new tools, new environments and new perspectives (Adidas, 2019).

This marketing strategy aligns with the values and strategy of the intended artefact.

Competitive Advantage Adidas have a competitive advantage, through demonstrating a high amount of co-creation (Adidas, 2021). Stepping into a new form of market and digital exposure can be seen as a bountiful opportunity. Dirk Schonberger, Global Creative Director of the brand said, “Adidas is a melting pot of different cultures.” (Johnson, 2021). This could speculate that there are no cultural boundaries that could hinder or disadvantage Adidas venturing into new video games.

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(Humphrey, 2005)

brand

offers

$160B) ($53.7b)

SWOT ANALYSIS 12

MARKETING MIX

(Borden, 1984)

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MARKET SEGMENT Adidas’s demographic is targeted to 14-40-year-olds however is not confined to this customer segment as it is quite popular with 40-65 year-olds as well (Heartofcodes, 2021). Adidas’s demographic is male and female (Heartofcodes, 2021). An average customer may be elite, upper class, middle class, lower middle class.

Adidas customers tend to be achievers, hard workers, strivers, goal orientated and stylish.

The may be viewed as brand enthusiast and image seekers (PHDEssay, 2020).

42.8% of Adidas’s global revenue is sourced from Europe (Statista, 2021). Adidas’s stores are usually located in densely populated areas such as cities and outlet stores can be found in suburban areas (Adidas, 2021).

An Adidas consumers are usually sports and leisure orientated. They may partake in activities such as running, football, cricket, going to the gym and tennis (PHDEssay, 2020).

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CORE PRODUCTS To make athletes better through innovation.

(Adidas, 2019)

CORE BENEFIT

Athletic shoes, apparel, accessories, sports equipment.

(Adidas, 2019)

ACTUAL PRODUCT AUGMENTED PRODUCT

Providing a complete solution for the exercising needs of an individual.

A sports community, delivery, customer support (Adidas, 2019)

“THROUGH SPORT, WE HAVE THE POWER TO CHANGE LIVES” (Adidas, 2019) Figure 3.

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THE 4 M’S

(Varley et. al, 2019)

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Opportunities and Challenges The Sims 4 is a life simulation video game created by the companies Maxis and EA Games (EA, 2021). Being placed in the top 50 best-selling games of all time, The Sims 4 achieved this through constant adaptation and diversification in the game, growing with consumer needs (Favis, 2020). The Sims 4 has recorded over 33 million players for their first quarter of 2021, whilst EA Games has recorded its highest net revenue to date (5.54 billion dollars in 2020) (Bailey, 2021) (Statista, 2021). The Sims 4 is played globally in over 70 countries (Gamstat, 2020).

Sims is an extremely malleable game, players have the ability to control the lives of ordinary people, whilst providing a world of nearly infinite freedom (The Editors of Encyclopaedia, 2021).

The Sims 4 is an extremely complex people simulator that allows players to explore the design of narratives that may reflect on their own lives or merely serve to entertain them (Chan, 2003).

This gives the player opportunity for the game to grow in any direction desired.

The Sims is a unique platform, a large percent of its community is female, which is a rarity in the video game world (Holch, n.d.) (EA, 2021) (Statista, 2020). A study with over 270,000 gam-

ers, found that 69% of players of simulation games are female (Yee, 2017).

This has been capitalised on by companies with a high female demographic such as MAC Cosmetics, Moschino (The Sims 4) and H&M (The Sims 2) who have had previous collaborations with The Sims (Abernethy, 2021) (H&M, 2007) (Fowler, 2019). Looking at the history of the game, there has never been a brand affiliated with street/sportswear or equipment, neither a clothing brand that is an attainable price for the average Sims 4 consumer in the past 14 years (H&M, 2007) (EA, 2021). This is a favourable circumstance for a brand such as Adidas.

INTERNAL ANALYSIS THE SIMS 4

A challenge The Sims 4 may face is over saturating their game with collaborating brands which many other games have received negative feedback and backlash (Dey, 2020). This is unlikely as there has only been 2 purchasable collaborations throughout the whole game in 7 years (EA, 2021). The Sims 4 may face is the release of The Sims 5, there has been speculation and interviews with staff about the release date of the franchises following game (Lee, 2021) (Coulson, 2021). This may cause uncertainty in the community about spending any more money the game, however many players have spent so much on the game they are unwilling to start fresh with no additional content (see Appendix 1).

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Figure 4.

Competitive Advantage The Sims franchise started in 2000 which was tremendously popular with 6 million sales in its first 2 years. The Sims franchise has sold over 200 million units and has made over $5 billion in lifetime sales (Eloise, 2020). It’s completely unique take on virtual life captured the imagination of players of all ages (Eloise, 2020). Described to “make you feel like a kid again” by Insider (Krause, 2020), the 20-year-old franchise commemorates nostalgia amongst current and past players. Nostalgia is linked to increasing self-esteem and alleviating existential threats (Sedikides, 2008).

COMPETITVE ADVANTAGE Current Marketing Strategy EA are basing their marketing budget around influencers opposed to traditional methods of marketing such as television (Grubb, 2017). The Sims 4 uses their community to its advantage by letting them use polls to help choose their next releases to the franchise follow consumer trends (EA, 2021).

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SWOT ANALYSIS THE SIMS 4

(Humphrey, 2005)

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MARKETING MIX THE SIMS 4

(Borden, 1984) 20

MARKET SEGMENT THE SIMS 4

y The Sims 4 consumers are most likel al ation aspir , tated orien ly to be fami and social people (Sicart, n.d.). The behaviour of The Sims 4 market segment may be seen as creative, humorous people (Sicart, n.d.).

IC& GRAPH O C Y H PS IOURAL BEHAV

GEOGRAPHIC

The Sims 4 is mostly popular in North America with 38% then closely followed by Europe with 37% (Gamstat, 2020). It is played in 70 Languages (EA, 2021).

Players range from ages 8 - 67 and then to be upper and middle class (Cacho, 2020). The Sims 4 have a larger majority of female players, more than male which is more uncommon in the gaming community (EA,2021).

DEMO

GRAPH

IC

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Control the life of ordinary people in a world of infinite freedom (EA, 2021)

Digital downloads, hard copy discs - Stuff Packs, Game Packs, Expansion packs. (EA, 2021)

The Sims 4 Community, Creator Gallery, post sale support, forums. (EA, 2021)

90987654323456789 ACTUAL PRODUCT

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CORE BENEFIT

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AUGMENTED PRODUCT

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CORE PRODUCTS

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THE 4 M’S THE SIMS 4

(Varley et. al, 2019)

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Number of Active Video Gamers From 2015 to 2023 (in billions) Figure 5.

which is almost double what it is currently ($160 billion) (Transperfect, 2021). The video game market is extremely stable and likely to have a continuous growth (Noonan, 2021).

In relation to Adidas, the athleisure industry received an 84% increase in sales since the start of 2020 (Briggs, 2021). Figure 2 demonstrates the market’s continuous stable growth and forecasted total revenue for 2025 ($207.79 billion). The global sports apparel market is worth $191.96 billion in 2021 and is forecasted to grow to $207.79 billion in 2025 (Staista, 2021).

The global gaming industry is worth almost 160 billion dollars which is more than the music and film industry combined (Business Matters, 2020). Similarly, the sports apparel market is worth 191 billion dollars (Statista, 2021). The two market titans are rarely linked despite their equal strengths.

Figure 5 demonstrates the continuous growth gaming produces globally, the number of active video gamers is steadily rising and is forecasted to reach 3.07 billion in 2023. Since 2020 the UK gaming population has grown 63% (Hardaker, 2020). The gaming industry is currently the highest profiting form of entertainment, larger than sport and film (Transperfect, 2021). It is forecasted to reach a value of $300 billion within the next 5 years,

Both markets have profited from the pandemic which may suggest consumers attitudes have shifted towards the markets (Briggs, 2021) (Hardaker, 2020). Fashion in video games has a predicted upward trajectory due to the shift of online values. Both markets are very stable and have predicted continuous growth.

SIZE, GROWTH AND FORECAST Age of U.S. video game players in 2020 Figure 6.

65+ 55-65 0-18 34-54 18-34

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PORTERS 5 FORCES (Porter, 2008)

Potential entrants – medium risk -High entry and exist barrier -Need to be well respected, established brand -Have to have resources to be able to pull of the collaboration -The collaboration needs to be with a popular game otherwise pointless -Video games and fashion brands collaborating is an exclusive infrequent occurrence -Games will not be constantly doing collaborations as may affect brand image (acquisitive) -Becoming more popular/ successful so established brands may want attempt video collaboration more often

Suppliers – low -Unlimited stock which uses no physical materials as it is a digital product -There is a potential unlikely risk of internet or website servers going down/ malfunctioning to causes users to be unable to download -Adidas may run out of certain stock due to discount code.

Industry Competition – High Risk -Adidas’s main competitor has already been features in a very popular video game.

-High amount of luxury brands collaborating in video game including The Sims 4.

Substitutes – low/medium risk -Different games have very different audience/ consumer base -Only a substitute if in The Sims 4 game -The Sims 4 only has 1 other fashion brand collaboration in its 7 years of being released so unlikely to have many substitutes and alternative options

Buyers – medium risk -The Sims 4 consumers are extremely loyal to the game -Primary research showed that 41% owned all The Sims 4 packs (see appendix) -The Sims 4 consumers may react badly to another brand collaboration such as the response to The Sims 4 x Star Wars (Appendix 1.2)

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Figure 7.

MARKET COMPETITION AND MARKET GROWTH Digital fashion is a trend with high trajectory expedited by the 2020 pandemic including cultural shifts such as London’s first digital fashion week and high-end designers capitalising from the gaming industry (Wallace, 2020). Digital avatars have been described as an innovation that will transform the industry by 2022 (WGSN, 2020). Described as “Fashions new playground.” by Vogue Business, the video games have become key to connect with Gen Z and Millennial consumers (Biondi, 2020). High-end designers are monetising from this new market such as Louis Vuitton in League of Legends, Marc Jacobs and Valentino in Animal Crossing (Biondi, 2020). Gucci has previously worked on The Sims 4 however this was an unofficial custom content collaboration with third party designers not affiliated with EA or Maxis (Jibilian, 2020).

campaign with digital fashion (Biondi, 2020). Looking at competitor behaviour stepping into the gaming direction is set to be a competitive market for the fashion industry’s future (Biondi, 2020).

Direct competitors for the artefact may be Moschino x The Sims 4 as it is the only other clothing brand in the game right now (EA, 2021). The Adidas collaboration may be more well received as The Sims 4 x Moschino “choice seemed truly bizarre; a high-end fashion brand, whose clothing is beyond the budget of the majority of players” (Ashcroft, 2021). Another competitor for the artefact with a female dominant video game collaboration is Marc Jacobs in Animal crossing (Chuy, n.d.). This collaboration is free and may seem more of a promotional artefact than one to gain money (Heron-Langton, 2020).

Adidas’s direct competitor, Nike, have featured their ‘Jordan’ trainers in the game Fortnite for a limited time as well as being featured in FIFA collaboration (Nory-Williams, 2019) (EA, 2020). Nikes Jordan x Fortnite collaboration costs users $18 for 2 skins which can be upgraded through gameplay (Lu, 2019). Fortnite is considered a more popular game in comparison to The Sims 4 (Dubin, 2020). Puma have released a collection of gaming footwear, collaborated with a competing team in the League of Legends world championships as well as creating a

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DEMAND RISKS AND OPPORTUNITIES

POSITIONING MAP (Kotler et al., 2016) An opportunity in this market is using a low-priced brand, such as Adidas, in a very popular game. The luxury fashion-video game market may be viewed as over saturated from the positioning map (figure 3). This creates a gap in the market as there has only been one low priced brand collaboration in a popular videogame which was only available for a limited time (EA, 2020).

A risk to consider is the general player reaction when games create collaborations with outside brands such as movies, celebrities or fashion brands (Wilkins, 2021) (see Appendix 3). An example is Fortnite which could be seen as losing its own identity after releasing so many brand collaborations by “selling out its community” to advertising and brand deals (Wilkins, 2021) (Izaak, 2020). What may have felt like an organic way for Fortnite to immerse itself in popular culture has started to feel like a cash grab at the expense of players (Izaak, 2020) (Wilkins, 2021).

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PESTLE

PESTEL (Kotler et al., 2008)

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Demand Drivers and Future Market Demands People enjoy having fashion brands in games and being able to wear brands they cannot afford; high fashion is seen as a commodity in the current economic times and therefore players are able to experience it through their online personas (Arlidge, 2020) (Gilliland, 2020). Lower priced brands such as Adidas and Nike give players the opportunity to merge their reality into games for a more realistic experience (See Appendix 2). The value of digital products have gone up, including crypto currency, non-fungible tokens (NFTs) and virtual products (apartments, fashion and furniture) (World Financial Review, 2020) (BBC, 2021) (Hahn, 2021).

Consumers are finding ways to shop more sustainably, and digital products may be a resourceful tool for this due to the low emissions and cutting out waste and raw materials (Elks, 2019) (Roasmarin, 2021). 18-34-year-olds are found to be practicing self-care which could be classed as playing video games according to an Oxford University study (Przybylski, 2020) (Estacio, Whittle and Protheroe, 2017).

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General Administration - Finance accounts to be managed by both companies to keep track of finances from both sides - Contracts to ensure legal binding of deal and ensure process is carried out properly and officially.

Supply Chain Management (Digital) -Digital planning -Game developers -Cloud service that hosts data (high security system to ensure safety from hackers) -Official store and third-party sellers -Devices that users use to access the game

Operations -Maintenance and updates of the artefact -Update pack description/price in the event of changes/ sales of the artefact -Maintenance of software and company PCs to highest standards to develop game -Game testers

Sales and Marketing

Distribution -Online distribution exclusively -Available on The Sims 4 official website -Adidas will provide a link on their site to purchase from The Sims website -Third party sellers -Purchase will result in a code which may be redeemed in gaming platform to use the pack

VALUE CHAIN

-Outdoor digital marketing (bus stops, tube stations, billboards) -Social media sponsored content – affiliates on YouTube and Instagram -Social media paid ads – videos and still graphics on Facebook, Tiktok, Snapchat and Instagram -Social media free posts – stories, reels, posts, tweets (Instagram, Facebook, Twitter, Tiktok) -Promotional video -Single use discount code (35%) for adidas with artefact purchase

Services -Customer service instant chat (The Sims 4 website) -Email customer service (The Sims 4) -Phone customer service (The Sims 4)

MARG IN

STRATERGY SUMMARY

GIN

Human Resource management - Use of both The Sims 4 and Adidas staff organised by the project manager - Externally checked by independent age classification service (Pegi) - Training of staff on the artefact subject - Staff wages to continue on annual wage – no additional pay for participation of artefact - Recruitment of affiliates for sponsored content on social media platforms

R MA

Product R+D, Technology and Systems Design - Digital fashion collection catered to fit The Sims 4 avatars - Front cover of the new pack inc. alternative front cover - Game development and design software provided by The Sims 4 - Graphic content for promotional content and stuff pack - Back-end interface update to The Sims 4 and Adidas site.

(Porter, 2004)

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EXISTING PRODUCT

MARKET PENETRATION

NEW PRODUCT

PRODUCT DEVELOPM DEVELOPMENT

Both participating brands already exist they are using mutually beneficial co-branding to penetrate new markets.

Adidas will enter the female dominated gaming segment whilst The Sims 4 will position themselves alongside one of the most successful sports brands.

ANSOFF MATRIX Ansoff Matrix (Lynch, 2009)

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CO-BRANDING A main component of the artefacts marketing strategy is co-branding. Co-branding is a commonly used technique which offers both parties a way to penetrate new markets (Kenton, 2020) (Chang, 2009). It is beneficial as it can link the core strengths of the participating companies whilst reinforcing character through expression of positioning (Kenton, 2020) (Chang, 2009). The collaboration will consist of both companies’ names thus making it a market penetration strategy (Chang, 2009). The collaboration may be successful due to the high reputation of both brands and heterogenous customer segments, whilst offering horizontal integration (Chang, 2009).

Co-branding offers an opportunity for both brands to create revenue with less risk involved. 74% of companies say that brand partnerships are a very high priority for their business as well as 11% of marketers highlighting co-branding and partnership posts are their most engaged content on social media (HubSpot, 2020) (Nichols, 2018). Some co-branding campaigns have been unsuccessful due to uncomplimentary pairing of brands; This was evident between LEGO and Shell (Kosin, 2017). A combination of a children’s brand and an environmentally damaging brand caused a public outcry which forced the partnership to end (Kosin, 2017). This is a low risk for Adidas and The Sims 4 due to horizontal target markets and values of technology and innovation (Danziger, 2021) (Eloise, 2020).

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09.10.21 09.10.21 09.10.21 09.10.21 09.10.21 09.10.21

09.10.21 09.10.21 09.10.21 09.10.21 09.10.21 09.10.21 09.10.21 09.10.21 09.10.21 09.10.21

CO-BRANDING BENEFITS

Adidas Benefits The collaboration between Adidas and The Sims 4 should be beneficial for both parties. Adidas may utilize The Sims towards a nostalgic marketing strategy. Personal nostalgia refers to periods of an individual’s own lived past (Havlena and Holak, 1991). The Sims franchise was created in 2000, many consumers have memories playing the game as a child and may be one of the reasons they still play today (Eloise, 2020) (Krause, 2020). Nostalgic marketing is a successful marketing technique and works especially well with millennials which are part of the target audience (Friedman, 2016) (Kim and Yim, 2018). Adidas will be introduced to The Sims 4 consumers who are yet to be exposed to a sporting brand on their platform which may result in high brand recognition, positive associations and desirability (Kosin, 2017) (EA, 2021).

Sims 4 Benefits Synergistic momentum will result in The Sims will gaining exposure to over 11% of the sporting goods market (Statista, 2021) (Kosin, 2017). Adidas advertising The Sims 4 will give the opportunity of new larger markets to the video game. The artifact will consist of co-marketing and will be publicly announced from both participants on all media channels. The Sims 4’s previous collaboration with Moschino had speculation that “it probably benefited Moschino more” and Sim’s fans were “disappointed” with the high price point of Moschino (Stampler, 2019) (Stampler, 2019). Involving Adidas in The Sims 4 may countermand the backlash from Moschino due to Adidas resonating with players financial capacity and evidence of players wanting to see it in the game (see Appendix 1 and Appendix 2).

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The Benefits of a Digital Product Digital Products or DLC (downloadable content) In 2021, there are constantly increasing ways of creating revenue without producing a physical product, which can benefit both internal and external stakeholders (Smith, 2020). Digital products have high profit margins and no limit on how many units can be sold which avoids the over or underproduction of products (Jones, 2018). A digital product can be purchased years later to provide a continuous ongoing profit unlike physical fashion which is most likely is not a long-term investment due to trend cycles (Zarroli, 2013) (Jones, 2018). Electronic Arts profited $1.2 billion dollars from DLC’s and game add-ons, this is a quarter of the global total in 2017 (Perillo, 2020).

STRATERGY SUMMARY

Described as 2021’s most exciting technology trend, digital fashion illustrates a market for virtual self-expression (Ball, 2021). Evidence of video game avatar skins priced at £7-£16 being resold on eBay for £2000 demonstrates the high demand of dressing online personas (Fortson, 2019). Digital fashion may shape and reform the fashion industry (CBInsights, 2021). Future trends may highlight the slowness of adoption by traditional and established brands which are not prepared to adapt and change their business model to be future proof (Bertola and Teunissen, 2018) (CBInsights, 2021).

The term “fourth industrial revolution” refers to digital and smart manufacturing including the convergence of digital and physical environments (Bertola and Teunissen, 2018). Digital clothing has a potential for mass market appeal as it promotes Instagram’s online culture and is an advocate for sustainable fashion (Rubin, n.d.). Transitioning to a digital model may impact more efficient and sustainable production methods (Bertola and Teunissen, 2018). Digital garments create far less emissions than physical clothing due to cutting out sourcing materials, producing fabrics, making garments and shipping them internationally (Reuters, 2019). Some digital garments have been measured to produce 95% lower carbon footprint in comparison to physical clothing (Roberts-Islam, 2020).

Having the ability to earn a substantial income from a product with little waste put into the environment is beneficial for both participating companies. The digital supply chain gives the opportunity for companies to cut down costly and time-consuming logistics (McKinsey & Company, 2016).

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The artefact’s marketing strategy will utilise product placement for Adidas in The Sims 4.

Product placement is argued to be a highly effective marketing technique which involves purposeful incorporation of commercial content into a non-commercial setting (Williams, Petrosky, Hernandez and Page, Jr., n.d.) (Hang and Auty, 2011). It is suggested product placement invokes a more positive brand attitude in comparison to traditional advertisements (Glass, 2007). Research suggests product placement in video games is most effective than other media due to players having the ability to interact with the placements, leading to enhanced stimuli and fluency beyond a perceptual level (Hang and Auty, 2011).

An immersive experience represents brand actions which aim to create a new illusory environment for its audience (Writer, 2020).The aim of this marketing technique is to make the consumer feel part of what is presented to them (Writer, 2020). Millennials have shown a desire to see ads in the form of a game (Oritz, 2020) (see Appendix 3).

The Sims 4 will benefit from the placement, according to primary research that gamers enjoy seeing brands they like in the game and the realism it brings (see Appendix 3). This has been successful for The Sims franchise in previous collaborations such as Ikea x The Sims 2 which has a 4.5/5 user rating and is requested by fans for a second collaboWhether the placement is an obtrusive ad- ration with The Sims 4 (see Appendix 4). vertisement will influence the effectiveness of an advertisement (Hang and Auty, 2011). The artefact will create pro-longed exIf consumer is emersed in the narrative, they posure for Adidas, primary research are distracted from the product placement highlighted that 47.74% of players have and do not think about it being an advertise- spent more than 900 hours playing the ment being obtrusive (Hang and Auty, 2011). game (see Appendix 3). Adidas have a A study with college students playing a vid- history of positive product placements eogame with product placement involved such as the 1980’s $1.5 million brand found that the brands register in the subject’s deal in the with Run-DMC which is subconsciousregistered as positive and not still running in 2021 (Adidas, 2021) negative (Glass, 2007). It was found that par- (Joseph, 2013). Adidas utilising The ticipants registered these brands as good due Sims 4 as a virtual world for players to to the positive experience whilst playing the immersive themselves in conjunction game, this may be due to the hedonic nature with their brand offers a unique way of of the placement which may influence posi- gaining customer loyalty and referrals tive affect (Glass, 2007) (Hang and Auty, 2011). (Karnes, 2021) (Shaikh, 2020). Studies show companies that offering experiential products have a 200% greater likeImmersive experiential marketing is a less lihood of referrals and a 25% increase traditional form of marketing which produc- in customer loyalty (Karnes, 2021). es high consumer interaction (Writer, 2020).

STRATERGY SUMMARY

Product Placement and Immersive

Experiential marketing

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DISCOUNT CODE Adidas will provide a single use 35% discount code included in the pack. It is common for most discount codes to be around 10%-20% (Shopify, 2021). This will make customers act on impulse to make the code as beneficial as possible as it may seem like a once in a lifetime opportunity to get non-outlet Adidas clothing for 35% (Xu and Huang, 2014). The amount of the discount code is justified due to it being available to students and NHS members (Unidays, 2021) (Health Service Discounts, 2021).

Adidas offers a 35% off multiple use code for app purchases to students and NHS staff, however many millennials are unaware of this as they do not have access to these discounts (Health Service Discounts, 2021) (Unidays, 2021).

Shopping online has resulted in shoppers using browser extensions such as Honey which automatically apply discounts for purchases on any sight if available (Honey, 2021). 60% of consumers love to receive discount codes 59% of consumers state that discount codes influence purchasing decisions (Saleh, 2021). A phycological principle to seek pleasure and avoid pain causes a trigger a feeling of pain when missing a bargain or in contrast experience thrill from getting a good deal (Shopify, 2021).

Discount codes are common practice in the 21st century, Google Trends highlights the consistent growth in popularity since 2004 of consumers looking to get discounted items (see figure 4) (Rawlings, 2012).

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DISCOUNT CODE//

The single use discount code may be a large incentive for players or outside markets to buy the pack to save money. Consumers looking to buy Adidas clothing may believe paying £9.99 for a 35% discount code is incentive enough, as they may save more on clothing than what the price of the digital content is worth. There is evidence of this practice occurring throughout the retail industry, for example purchasing magazines and newspapers for the codes inside (Farrell, 2020).

The 35% discount code to spend at Adidas for physical products, may add to textile waste (Perry, 2018). Looking at Adidas as a whole, they can be viewed as a fast fashion brand however many garments are worn over 40 times on average (Thomasson, 2015) (Mile, 2019). The high-quality clothing brand offers end of life solutions for their products as well as teaming up with brands like Depop for sellers to re-sell their garments for a new life (Urquhart, 2021) (Adidas, 2021).

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STRATERGY SUMMARY

TARGET MARKET The artefact has been strategically targeted towards female 18–34-year-olds in North America. This is justifiable due to the combination of both target markets of the collaborating brands (Writer, 2020) (EA, 2021).

America has games ingrained as part of their culture and as a whole is playing more video games than watching network television (Hang and Auty, 2011) (Taylor, 2017). The USA contributed to $36.9 Billion to the gaming industry in 2020, second only to China which was $40.9 billion (Wepc, 2021). Females are highly influenced by fashion and create 70-80% of all purchases in both collaborating brands biggest markets (US, North America) (Davis, 2019) (Statista, 2021) (Gamstat, 2020). Women are more likely to buy hedonic products which will benefit the artefact (Tifferet and Herstein, 2012). The target age range will give Adidas a competitive advantage due to the disposable income of the target customer and independent financial responsibility (Elkins, 2019).

Nike, Adidas’s main competitor, featured in Fortnite which is the second most favourable game amongst pre-teens (Statista, 2021) (Nory-Williams, 2019). Pre-teens are more likely to have to ask permission of a guardian to make in game purchases which has led to only 40% of parents allowing their children to make in game purchases (Ives, 2019).

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Future Competitive Position The marketing development strategy for this brand collaboration has resulted in Adidas being placed in the market of digital fashion in video games directed towards a female demographic.

To maintain a competitive advantage for Adidas x The Sims 4 the pair should maintain strong links and continue to work together in the future. One of Adidas’ main competitors Nike had a strong start to an exclusive fashion collaboration with Fortnite however this was a limited time occurrence and has yet to go further (Lu, 2019). For Adidas to perpetuate their relationship with The Sims franchise, it could be recommended that Adidas could start a clothing line with The Sims 4 licence. This could include Sims themed Adidas products similar to other brand collaborations Adidas have produced in the past (Almond, 2020).

Animal Crossing x Marc Jacobs may be viewed as a future competitor for Adidas x The Sims 4. The similar target markets and concepts may sway consumers to purchase the competing brand collaboration due to it being free (Chuy, n.d.) (Heron-Langton, 2020).

Adidas x The Sims 4 may still have a competitive advantage due to the depth and scale it offers in comparison to Marc Jacobs which offers 6 fashion items (Heron-Langton, 2020).

Luxury fashion brands offering digital fashion offering less attainable clothing may be an incentive for buyers as players escaping from reality is a large factor of digital fashion and gaming in general (Gilliland, 2020) (Nordby, Løkken and Pfuhl, 2019). However, research shows gamers online personas can be made to reflect their own lives and values depending on their gameplay style (Fong and Mar, 2015).

One of the highest risk competitors Adidas x The Sims 4 may face is further fashion brands being included in The Sims 4 game. The collaboration will always be available to purchase for the game, however if new brands are introduced the collaboration may become less exclusive and fall in sales (EA, 2021) (Sutherland, 2019). To avoid any of Adidas’ direct competitors being featured in the game, it could be beneficial to put a clause in the co-branding contract that no other sports apparel brand/ athleisure brands can collaborate in The Sims 4.

As time goes on Adidas x The Sims 4 may become less successful due to shifts in society’s purchasing behaviours and new games replacing The Sims 4 such as The Sims 5 (L’Estrange and Allen, 2021) (Lee, 2021). To stay competitive Adidas should maintain strong links with The Sims franchise and carry their relationship throughout their future.

Figure 8.

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PRIMARY RESEARCH A survey was conducted with the aim to gather qualitative data about Sims 4 users and their thoughts on Adidas as a collaboration, as a brand. It highlighted a lot of factors to consider when making the collaboration (price, contents, opinions). The survey was posted into a Facebook group “The Sims 4 Community” which is a place for general discussion about the game with over 85,000 members. The survey gathered just under 1,200 responses for the 10 questions.

The Sims 4 Community

WE WANT ADIDAS

NO E MOR

2E

P STRI

40

STATISTIC RESULTS Primary Reseach

Question 1 indicated the commitment the gamers had for the game, 47.74% of participants have played over 900 hours of the game (see Appendix 2). This is important for Adidas to consider as it highlights the exposure their brand would receive from the product placement. 493 participants stated they own all additional content from the Sims 4 (see Appendix 2). All the Sims 4 Expansion, Game and Stuff packs come to a total of over $750, highlighting the disposable income of players and potential use of the discount code (Muller, 2020). It may be interpreted that players who own all packs can be viewed as a safety net for the sales of the collaboration.

The Sims Community showed their desire for realistic game play, 57.89% of participants stated they use unofficial mods to make the game more realistic (see Appendix 2). Over 65% of players believed that real brands in the game make it more realistic (see Appendix 2).

No Yes

Analysing the results, the data showed consistent trends throughout the survey in favour of Adidas and The Sims x Adidas (see Appendix 2). Question 7 demonstrated that 78.75% of players would like to see Adidas and Sims 4 collaborate, this demonstrates the potential success and stance on the collaboration (see Appendix 2).

Would You Like To Adidas Featured in The Sims 4? (see Appendix 2)

The results demonstrated general aspects to consider when producing and selling the collaboration. Question 3 demonstrated that 91.39% of participants were more likely to buy additional content for the Sims 4 if it was under £10 (see Appendix 2). This may conclude that Adidas should indefinitely collaborate on a Stuff Pack priced at £9.99.

900< 701-900 501-700 301-500 101 -300 0-100

How Many Hours Have You Played The Sims 4? (see Appendix 2)

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ARTEFACT DEVELOPMENT

42

Figure 9.

FRONT COVER MOCK-UPS 43

DIGITAL FASHION CONTENTS MOODBOARD 44

GAMEPLAY MOCK-UPS

45

RACE MODEL The artefact will reach new consumers by using paid ads, sponsored content, outdoor marketing and digital/ print articles. Existing customers will be informed of the artefact through social media posts, sponsored content and email marketing.

The artefact will be optimised on both landing pages of the collaborating brands. Allow pre-orders in run up to the release. Give early access to Youtubers to review the artefact.

Give incentive through discount code. Digital downloads to be purchased from The Sims 4 site as well as gaming platforms such as Origin, PlayStation Store and Xbox Store.

Encourage reviews and general feedback from the community. Respond to comments and tweets on social media. Encourage use of #AdidasxTheSims4 to create a community of customers.

REACH ACT CONVERT ENGAGE (Smart Insights, 2020)

46

im s

*The S

4 X Adid

Multi-Channel Marketing The artefact will use multichannel marketing to promote and inform consumers. Multichannel marketing refers to the practice of interacting with consumers through indirect and direct communication channels (Sas, n.d.). The artefact will use social media (free content, paid advertisements, sponsored content), outdoor marketing and email marketing.

Social Media Social media is a useful tool to create free marketing from a brands customer base (Zen, n.d.). Keeping followers on board with what companies are doing is an effective way of gaining brand loyalty (Shanahan, Tran and Taylor, 2019).

Furthermore, free social media posts can easily be converted to paid advertisements to reach a further audience (Facebook, 2021). Paid advertisements on social media give marketers the opportunity to direct their content towards specific market segments to optimise user engagement without seeming intrusive (Mower, n.d.) (Facebook, 2021). It may be useful to create a short video highlighting key points of the collaboration. Most platforms push the use of video content especially Tik Tok, Facebook, Instagram and YouTube (Barnhart, 2021).

s

Sim 4 X

Ad idas

SOCIAL MEDIA

he 2021 The Sims 4 x Ad 1T e Si m s ida s 202 4 X Adidas - Th 021

as 2

The collaboration may benefit from making content which will be shared on all social media channels to create free awareness about the artefact. Combined, the brands have 62.6 million followers on Instagram which is a wide reach, if posts are shared it could expand that even further (Instagram, 2021).

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SOCIAL MEDIA MOCK-UPS Content on own brand’s social media

Adidas

The Sims 4 The Sims 4

ADIDAS

HERE TO CREATE

You spoke and we listened! Adidas x The Sims 4 coming soon!!

Pre-order now, coming this october.

PLAY WITH LIFE ADIDAS X THE SIMS

Send Message

Paid ads on social media 48

Individually Adidas and The Sims 4 both partake in sponsored content as a form of promotion (Joseph, 2019) (Heathman, 2020).

The effective form of marketing resonates well with the collaborations target market (Gundová and Cvoligová, 2019). There are multiple social media channels which have a high engagement rate such as YouTube and Instagram which may be effective for this artefact (Semeraro, 2019). A benefit of sponsored content is that it will be a permanent form of advertising, the post will stay continuously on the internet to reach people even years later, which the downloadable content will still be able to generate revenue (Sidewalker, n.d.).

YouTube is an effective way of reaching consumers and potential consumers (Gundová and Cvoligová, 2019). The Sims 4 will send a new game add-on a few days before its release for the content creator to review and play as a form of promotion (Heathman, 2020).

The Sims 4 have a wide reach on YouTube as streamers will post their videos with an accumulation of 8,872 channels and over 12 billion views (Play Index, 2021). It would be beneficial for the collaboration to use this marketing technique. Looking at the statistics of YouTube content creators, these may be some of ideal candidates to create awareness for the artefact to players that are already playing The Sims 4.

Kelsey Impicciche Subscribers 636k Overall Channel views 31M Most popular Sims video – 946K views. 53k upvotes, 377 down votes.

3,331 comments.

INFLUENCERS

Lilsimsie Subscribers 1.23M Overall Channel views 350M Most popular Sims video – 2M views.

66k upvotes, 798 down votes. 1,830 comments.

Clare Siobhan Subscribers 1.83M Overall Channel views – 485.5M Most popular Sims video – 4.3M views.

50k upvotes, 854 downvotes. 6,879 comments.

James Turner Subscribers – 1.42M Overall Channel Views – 400.7M Most popular sims video – 7.5M views.

150k upvotes, 3.8k downvotes. 5,116 comments

(Youtube, 2021)

Joey Woahy Followers – 1.3M Posts – 890 Up to 110k likes on a post Emma Chamberlain Followers – 13M Posts – 663 Up to 2.3M likes Corinna Kopf Followers – 5.5M Posts – 755 Up to 1.4M likes on a post

(Instagram, 2021)

Saffron Barker Followers – 1.8M Posts – 1930 Up to 150k likes on a post

Instagram can be used to create sponsored posts; Adidas has previously used this technique to promote themselves through influencers (Heathman, 2020). Using influencers on Instagram may be an opportunity to promote The Sims 4 and the artefact to new markets. Choosing affiliates to post content who are involved in the gaming, streetwear or techno ogy communities is important to ensure you are reaching the correct markets. The posts can be distinguished by a hashtag #AdidasxTheSims4 which will allow all posts to converge in one place.

Influencers will also post stories with swipe up link to direct consumers straight to the online store, this will give the opportunity to track the effectiveness of the influencer marketing.

These influencers have been selected due to their high following count and relevant interests to the artefact.

Though these influencers are not all female (like the target market) they have a high percentage of female followers.

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Its official i’m a Sim! @Adidas x @TheSims4 collaboration coming soon AD

Its official i’m a Sim! @Adidas x @TheSims4 collaboration coming soon AD

SPONCORED POST MOCK-UPS ADIDAS

ADIDAS STUFF PACK

50

The artefact will be advertised using outdoor marketing due to its effective results for businesses, even those which are primarily online performers (Borisova and Martynova, 2017) (van Meurs and Aristoff, 2009). Outdoor advertisements are an effective way to reach consumers from different socio-economic backgrounds as well as life stages, this may reach unlikely new consumers who will not be a part of targeted online advertising (Borisova and Martynova, 2017).

To mirror trends in marketing, the use of technological advances within outdoor marketing can facilitate experientially orientated consumption of outdoor marketing (Koeck and Warnaby, 2014). Due to this, it may be beneficial to advertise through digital techniques outdoors aesthetically fitting with the primarily digital artefact.

OUTDOOR MARKETING

Large companies tend to use outdoor advertisements in densely populated areas for maximum viewing potential and effectiveness (Wilson and Till, 2011). An important factor to take into account is that location may affect brand image (Wilson and Till, 2011). The Sims 4 and Adidas are most popular in North America and Europe therefore one could argue that it would be most beneficial to promote in these regions to have the highest reach for the target markets (Statista, 2021) (Gamstat, 2020). Looking at highly populated areas of these regions it may be effective to advertise in London, Manchester, Los Angeles, New York, Paris and Madrid. Using outdoor marketing specific in densely populated areas will alienate potential consumers from more suburban areas who are a just as valued demographic (Dratch, 2021). Looking at digital outdoor marketing techniques, some of the main options to consider may be, digital LED bus stops, digital subway/ tube escalator posters and digital billboards.

51

COMING THIS OCTOBER

Coming Soon this October PRE-ORDER NOW

W PRE-ORDER NO

OUTDOOR MARKETING MOCK-UPS

52

EMAIL MARKETING

NEWS

Email marketing is an effective way to directly tell consumers about the artefact. Adidas and The Sims franchise both offer email sign-ups on their sites and may offer a broad database of consumer emails. 73% of millennials favour email updates from brands and research shows that emails will be noticed in this customer group (Naragon, 2017). Research shows that over half of 18–24-year-olds and 43% of 25–34-year-olds check their emails every morning, however only 40% actually read the content (Naragon, 2017).

The collaborating brands will both send out an email prior to the launch to inform consumers of the upcoming artefact as well as an email on the day of the launch which will allow users to navigate their way to The Sims 4 site to purchase the artefact. It is important to use the correct tone and language when speaking to consumers through email marketing.

EMAIL MARKETING MOCK-UP

SHOP

COMMUNITY

INFO

PRE-ORDER NOW

Adidas and The Sims 4 have come together to produce the first Adidas digital fashion collection Exclusively available for Sims everywhere. Whether they are hitting the gym or hitting the bar, give your Sim the streetstyle they deserve. Throw away the two stripes and strut in style, Adidas is all in.

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Post-production

Pre-launch

COSTINGS

Pre-launch

THE JUSTIFICATIONS OF PRICING

Testing

Production

Pre-production Planning

Figure 10.

The artefact will earn revenue from digital sales and purchases used from the single use code. Adidas will gain 15% of the revue from the digital content as well as all sales from the discount code. The Sims franchise will earn 85% of all revenue from the Adidas x The Sims 4 Stuff Pack. Staff from both brands will work on the artefact to ensure a cohesive seamless finish that both brands are happy with. All human resources are available between the two companies besides external independent age verification services which will give the game an age certificate (Pegi).

The average number of people to work on a video game can be between 20-100, considering this is the smallest form of an expansion pack to an already existing game the team working on this project should consist of around 20 individuals (Rockin, 2018). There are 7 stages

of creating a video game, being a small expansion with around 26 items, it can be estimated that the production of this artefact will take around 6-7 months (Pickell, 2017). Each of the stages may take around 1 month given the size of the project.

The artefact is monetarily beneficial as well as environmentally due to their being no physical product. The cost of physical materials is extremely small and both brands only need computers and software already owned to complete, sell and market the artefact using the digital supply chain. (Jones, 2018). A large proportion of the costing will be down to the marketing budget. It is important to indicate the high capital of both brands, through marketing and creating awareness (Wood, 2018). Deciding to advertise in highly populated outdoor areas as well as online increases the costs however also increases the reach and reputation of the collaboration (Olenski, 2011).

The Sims 4 passed a new milestone of 32 million players in 2021 (Bailey, 2021). 43% of survey participants own all The Sims 4 packs (see Appendix 2). This has created an overall estimated guaranteed revenue of £128.8 million and profit margin of 99.2% (see Appendix 4.1). The estimated overall cost to produce and market the pack will come to £979,934 and total profit of £127,871,000 (see Appendix 4.1). Primary research indicated 78% of participants would like to see the two brands collaborate for the artefact therefore the estimated revenue may be higher (see Appendix 2).

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55

Human Resorces

COSTINGS

56

Marketing

COSTINGS

SO WHAT’S NEXT? Opportunity Looking at the future of the co-branding artefact, there are many possibilities in which it can progress and develop. One opportunity is the discount and sale of the pack. Many Sims 4 users will wait until a pack goes on sale before buying it (see Appendix 1.3), this will give the artefact further reach and continuous sales after the launch. People who are savvy shoppers appreciate a bargain therefore the 35% discount code may still be utilized by Sims 4 consumers who may have less disposable income (Shopify, 2021).

The Sims 4 is a 7-year-old game, much speculation has been raised with the release of The Sims 5 (Lee, 2021). An interview hinted towards the possibility of a creator marketplace, allowing creators and designers to sell their own cosmetic items for The Sims 5 to earn revenue (Lee, 2021). This could be an opportunity for Adidas as it will give the brand the ability to continuously upload new products and earn revenue from an official Adidas store for the foreseeable future of the game.

THE FUTURE OF ADIDAS X THE SIMS

The most substantial opportunity is that that Adidas could release a clothing range with The Sims 4. Maintaining a strong relationship with EA could result in being given the licence to their franchise to use on a physical fashion collection. This would give opportunity for the many players who missed out on The Sims 4 capsule collection with Moschino due to the luxury price point.

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RISKS An unlikely potential risk of the artefact to be considered is the collaboration being viewed as a promotional scheme and not for the best intention of the game. Previous collaboration with Star Wars following the release of their new film, became the most unpopular expansion pack with a 1.7 audience rating (see Appendix1.2). The franchise did not align with the target market of the Sims nor compliment the gameplay. It was viewed as a promotion for the release of the latest film (see Appendix 1.2). Over 80% of survey participants vocalised their desire for Adidas in the game therefore making this risk unlikely (see Appendix1.2). This risk is reduced due to the non-official products created with high download rates indicating the desire for the collaboration (Appendix 3).

A likely risk to take into account is the use of modifications in The Sims 4. Survey results highlighted that 57.89% of participants use modifications to make the game more realistic (see Appendix 2). Third party modifications may make the game susceptible to an unofficial 18+ rating with evidence of non-censored adult themes, violence and crime (O’Brien, 2021). Having Adidas’ brand being represented in this way may affect Adidas’ brand image, their morals and what they stand for as a company. This only affects PC players therefore it is not an immediate risk to the artefact (Jecks, 2020).

A highly likely scenario that may occur is people viewing the pack as a cash-grab. This is due to EA’s reputation of getting the most money possible out of a game, The Sims 4 included (Robb and from Megan, 2020). The pressure to deliver quarterly numbers changed EA’s priorities which resulted in the regularity of mediocre games which speculated they “lost their soul” and ruined their credibility (Polygon, n.d.). Consumers are becoming outraged across the gaming industry’s operations as a whole (Weber and from Michael, 2019). This is due to the style of selling games which always encourage additional costs after initial purchase to have an improved game play (Weber and from Michael, 2019). EA can be viewed to have the notorious reputation for additional spending in games however it is a common occurrence with most game manufacturers (Weber and from Michael, 2019) (Weber and from Michael, 2019). This may affect Adidas’s reputation due to being viewed as participating in a cash grab.

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RISKS MATRIX

(Harbottle, n.d.)

59

SENSITIVITY Ethical considerations to consider during the development of this project can consist of: 1.

Children spending parents’ money without consent.

The telegraph published an article stating that 1 in 6 children have spent a parent/guardian’s money towards video games without their consent (Hymas, 2020). Advice from Internet Matters offer help control this issue is for parents to set rules and limits on spending (Internet Matters, n.d.). It is important for parents to speak to the young demographic about what they can and can’t purchase (Internet Matters, n.d.).

2.

Video Game Addiction (VGA) World Health Organisation have classified VGA as a mental disorder (WHO, 2018). CAHMS (Children and Adolescent Mental Health Service) mentions the damaging effects with long- and short-term impact (CAMHS, n.d.). Similar to a substance addiction, video gaming can cause social anxiety, depression, loneliness and a pessimistic outlook on life (CAMHS, n.d.). Some advice from UK Rehab to limit the risk of this is to limit the length of gaming sessions and not to play every day (UK Rehab, n.d.). This mental disorder only affects 1.3% of gamers (Wittek et al., 2015).

3.

Age Based Advisory The Sims 4 has a PEGI (EU) 12 rating, due to its Sex (sexual images and/or sexual innuendo) and Violence (non-realistic looking violence towards human characters which cause minor injury) (Pegi, 2014). To avoid exposing children under 12 to this, PEGI suggests parents always check the age limit before buying the game and to try and look for a summary or review of the game (PEGI, n.d.).

Figure 11.

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CONCLUSION To conclude, Adidas and The Sims 4 may offer a very valuable collaboration with benefits to both brands. A co-branding product placement may be desirable to stakeholders due to its sustainable socio-economic advantages and customer satisfaction (Rosmarin, 2020) (Hanson, Salmoni and Volpe, 2009). Research has shown that using the marketing techniques in conjunction with each other may create a seamless experience with effective results (Glass, 2007) (Karnes, 2021) (Xu and Huang, 2014). The Sims franchise is the top life simulation game of all time and Adidas is one of the most highly regarded sports apparel brands in history (Eloise, 2020) (Adidas, 2021). The large amount of capital in their current markets gives them the ability to execute a successful digital fashion video game collaboration.

The artefact will immersively connect with players whilst working in a sustainable direction for fashion (Rubin, n.d.). Adidas entering into a highly profitable new market will offer an extensive amount of product placement which results in brand loyalty and awareness (Williams, Petrosky, Hernandez and Page, Jr., n.d.). The artefact will be competitive due to a unique selling point and competitive advantage that Adidas will be the first sports brand in the whole Sims franchise.

The desirability of the artefact has been indicated through primary research as well as extensive downloads of unofficial Adidas content (see Appendix 2) (see Appendix 3). Demand drivers highlight the shift in societal values towards technology, sustainability and fashion (BBC, 2021) (Hahn, 2021). This strongly suggests that merging fashion and technology is necessary and companies that do not follow may not be future proof.

Competitors in the sporting goods market have only touched upon videogame collaborations on a small scale, it is recommended that Adidas act on this to gain a competitive advantage.

Due to the rise of the athleisure and gaming markets in 2020, it is imperative that Adidas and The Sims 4 utilise this amplified popularity to create a well-executed and purposeful collaboration. The financial impact is highly likely to be profitable for both The Sims 4 and Adidas.

There is an estimated 13,043% return on investment due to the digital nature of the product, this results in unlimited stock, low production costs, and an infinite shelf life (Jones, 2018) (See appendix 4.1).

It is important to consider the risk this artefact may induce. EA has a reputation for being avaricious which may affect Adidas’ brand image by working with them. The Sims 4’s actions of collaborating with another brand may disappoint fans due to previous reactions which have not always been positive. These risks are unlikely however due to 78% of players wanting to see the collaboration and the established large market for unofficial Adidas content (See Appendix 2).

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Figure 5 – Statista, 2021. Graph showing Number of active video gamers worldwide from 2015 to 2023. [image] Available at: <https://www.statista.com/statistics/748044/number-video-gamers-world/> [Accessed 25 May 2021].

Writer, R., 2020. What is an Immersive Experience and How Brands Are Using It. [online] Rock Content. Available at: <https://rockcontent.com/blog/immersive-experience/> [Accessed 24 May 2021].

Figure 6 – Statista, 2021. Graph showing Distribution of video gamers in the United States in 2020, by age group. [image] Available at: <https://www.statista.com/statistics/189582/age-of-us-video-game-players-since-2010/> [Accessed 25 May 2021].

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Social Behavior and Personality: an international journal, [online] 42(8), pp.1293-1302. Available at: <https://www.researchgate.net/publication/266399913_Effects_of_Price_Discounts_and_Bonus_Packs_on_Online_Impulse_Buying>.

Figure 8- Adidas, 2021. Adidas Futurecraft.strung Shoe-Making Robot, Courtesy Design Museum. [image] Available at: <https://hypebeast.com/2021/5/exhibitions-to-visit-london-lockdown-lifting-details-david-hockney-yayoi-kusama-tate-modern> [Accessed 25 May 2021].

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Figure 9. Own artwork using custom content from creators: Rttraldi, Shakeproductions, Beckez2, McLaynesims, Dissa. The Sims Resource, 2021. Custom Content. [image] Available at: <https://www.thesimsresource.com/ downloads/browse/category/sims4/search/adidas/> [Accessed 27 May 2021].

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APPENDIX 1 Appendix 1 The Sims 4 consumer’s not wanting to purchase Sims 5 due to the money commitments they have in The Sims 4.

Appendix 1.2 The Sims 4 player reviews of Star Wars x The Sims 4 from Google reviews of the product.

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Appendix 1.3 The Sims 4 players from The Sims 4 Community waiting to buy Sims’s content only when it is on sale.

Appendix 1.4 Ikea x The Sims 4 Rating – Amazon(top) eBay (bottom)

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APPENDIX 2 Appendix 2 Primary Research Results – Survey

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Appendix 2.1 Primary evidence of interviews with participants from The Sims 4 Community on Facebook.

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APPENDIX 3 Appendix 3 Custom content made by third party designers, none affiliated with The Sims 4.

Pictures from TheSimsResource.com

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APPENDIX 4 Appendix 4 Media Packs for marketing cost

(The Guardian, 2021)

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Appendix 4.1 Costing table of profit

(Condenast, 2021)

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