adidas has launched the world's first intelligent running shoe, 'adidas_1', for the Indian market. Priced at Rs 12, 499, the new product is targeted at the Indian athletes.
With such a high price tag, the product may be beyond the reach of the average Indian athlete. As a high-end lifestyle product, it may of course find a few takers among P3Ps (Page 3 people).
Adidas, by showcasing the product, reaffirmed its technological superiority. Andreas Gellner, managing director, adidas India, said, "This product will establish adidas as a leader in the field of innovation. adidas_1 is the proof of our brand attitude - Impossible is nothing."
On the pricing front, Sriram Darbha, brand manager, adidas India, said, "Even if our lowest priced product costs Rs 1,299, the average sales price of our products is Rs 2,300. This implies that the Indian market has matured and now people are looking for high-priced product."
He, however, conceded that only the very affluent would be able to afford a shoe such as adidas_1.
When agencyfaqs! sought the opinion of industry experts on whether Indian athletes could be prospective TGs for adidas_1, the head of an Indian sports marketing company said, "The average Indian athlete is struggling to meet his/her basic requirements such as professional training, fitness equipment etc. Such high-priced shoes will be beyond his reach. Instead, adidas_1 may be used by the Sehwags and Sachins, especially for its technically superior features. Thus, this could be an aspirational product for high-end consumers."
He added, "To survive, every product or brand needs a certain volume. Thus, adidas_1 will have to go beyond its core TG. The high-end consumers can use it for their daily jogging or regular sports activities."
To promote this new product the company has chalked out an integrated communication approach. Without disclosing the total advertising spend, Darbha said, "Spends on television will amount to 30-40 per cent of the total budget." This is unlike other adidas products where the television media spend amounts to around 60 per cent of the total budget.
In television, adidas would primarily use music, movies and news channels (all in English), which cater to the upper socio-economic groups of the society.
The rest of the advertising budget, which is 60-70 per cent of media budget, would be spent on outdoor, new media and retail. Print has not been included in the media plan.
For new media, the company has set up a dedicated website, which will be further promoted to through popular horizontal portals in the country.
Retail advertisement will also include product display in company showrooms. Darbha said, "As this is a technologically advanced product, consumers need to be educated through live experiences at the company retail outlets." © 2005 agencyfaqs!