Adidas customized shoe service development and market implementation

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 to the introduction on the market of the service. 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.

Facts and Assumptions

The most important fact that must be addressed is that by developing a customized shoe service, Adidas provides a wide range of choice for its customers. The company allows customers to customize the looks of their shoes, their color, graphics, features, and others. It is assumed that customers will receive this service as an attempt from the company to satisfy their special needs and preferences. This is intended to increase affiliation with Adidas. It is expected that numerous customers will address this service instead of purchasing regular sport shoes. In addition to this, it is expected that the company will also attract new customers.

In addition to this, it is likely that the cost and duration of the project will not be exceeded. The company benefits from know how regarding this issue, which helps Adidas reduce the number of errors and delays associated with the project. It is also expected that the performance standards established to be reached by this project can be exceeded.

Research

There is little research that can be performed in order to determine the benefits, costs, and resources required by Adidas developing a customized shoe service. Most of the research is based on Nike's Id service. In addition to this, several marketing studies were analyzed.

Potential Uncertainties

The customized shoe developed for Adidas models Nike's service. However, this does not mean that Adidas' service will be as successful as Nike's. There are several issues that make this project uncertain. The need for customized shoes might have been addressed entirely by Nike. This means that Adidas cannot address a large customer segment with its service.

In addition to this, the psychology of consumers might not indicate a preference for such a developed offer. It has been proven through several scientific studies that when confronted with several options, individuals want to keep their options open. They do not want to choose an option, and miss out on others. They want them all open at the same time. N other words, they do not like to make choices. The process of making a choice puts a lot of pressure on the consumer. In many cases, the consumer prefers not to suffer the pressure determined by the decision making process, and prefers not to purchase the product in case.

This is one of the reasons for which companies do not present their entire range of products in a TV commercial in the fast moving consumer goods industry. They prefer to only advertise the most important product of the range, or several products in different commercials. Therefore, by providing a customized shoe services that provides a large number of choices that must be made by customers, Adidas might not make the best decision regarding its business. Some of its customers might orient towards smaller brands that provide a smaller number of different shoes, which reduces the pressure associated top making a decision regarding the purchase in case. It is important that the company develops a thorough analysis on the implications and requirements, and consequences that developing a customized shoe service is likely to have on its business expansion strategy, and also on its profits.

Reference list:

1. Customize the latest from NikeiD (2013). Nike. Retrieved September 15, 2013 from http://www.nike.com/us/en_us/c/nikeid?sitesrc=id_redir.