Customized Shoe Service
The project is represented by developing a customized shoe service for Adidas' customers. The idea is replicated after Nike's ID service. The success of Nike's customized shoe service determines Adidas product development researchers to develop such a project that their customers can enjoy. Basically, the service consists in personalizing customers' shoes with glow in the dark paint in a variety of prints.
The importance of the project relies on the service generating increased sales for Adidas. This is also intended to increase customer satisfaction. It is likely that most customers that will address customized shoes already are customers of Adidas. However, a certain number of new customers can be attracted. The customized shoes project is also intended to help Adidas differentiate itself from other spot shoes producers.
Involvement by Other Departments
The development of a customized shoe service is a complex project that requires the collaboration of several departments, like, the production, financial, marketing, sales, and product research and development departments. The financial department must establish whether the investment in developing the customized shoe line can provide satisfactory returns. In addition to this, the financial department must determine whether the company has the resources that are required by this investment.
The product research and development department develops the project. This department comes with the idea, but also with the scheduled plan necessary for reaching this objective. The production department must determine the necessary raw materials required for developing customized shoes, but also to plan the production process in order to satisfy demand for other products of Adidas.
The marketing department must develop market research studies in order to determine the demand for customized shoes, but also to develop a marketing strategy that refers to identifying the benefits of the product and communicating them to the targeted customer segments. The sales department must develop the sales strategy required in order to reach the established objectives regarding sales volume.
Estimated Project Duration
It is likely that the project duration is five months from the idea presentation of the product research and development department...
The complexity of the project and size of Adidas' business require this duration. The duration of the project must be adapted in accordance with different environmental factors that influence it.
Assumptions and Uncertainties
Based on Nike's success with the Id shoe service, Adidas can make the assumption that it can also benefit from the success of developing a customized shoe service. However, Adidas is not certain whether the market for such products can be increased in order to absorb its products. It is not likely that Nike customers will purchase Adidas products because of their loyalty towards the company.
Objective
The objectives of the project refer to cost, schedule, and performance. The cost of the project must not exceed the established investment with more than 10%. The investment in developing a customized shoe service must break even in the first year after the service is provided to customers.
The schedule of the project is the following: proposal from the product research and development department -- 2 weeks, presentation to top management -- 1 day, approval by top management -- 2 weeks, strategy development by the departments involved -- 1 week, production -- 2 months, promotional activities -- 1 month, introduction on the market.
The performance indicators that must be reached by the project are represented by: increasing the number of customers by 5%, increasing the sales volume by 5%, increasing customer satisfaction and loyalty.
Project Benefits for the Company
The project is developed in the attempt to follow the strategy developed by Adidas' competitor, Nike (Nike, 2013). Developing the customized shoes service is likely to determine several benefits for Adidas, like expanding the range of products, which means the company will satisfy an increased number of needs and preferences from customers, increasing customer satisfaction, which determines customer loyalty and helps improve the company's position on the market. In addition to this, the company's profits are likely to increase, but not by much.
This customized shoe service is addressed to younger customer segments, By increasing their satisfaction and loyalty, Adidas builds the solid customer base for the future, when these customers…
