In the business world, change is vital to success. While it is certainly true that start-ups must practice some kind of innovation to grow their business, even well-established corporations must also adapt to changing market conditions. Stagnancy through a failure to recognize the new or changing needs of a marketplace can cause a loss of sales. That’s why it’s so important for companies to be constantly thinking of ways to expand the business. One of the most intuitive and often effective ways to grow an organization is to offer a product line that is new to the company.
The following essay will examine the marketing implications of adding a new product to an existing company’s line of goods. Adidas is a name synonymous with athletic wear. Found in 1924, the Adidas company has certainly had its share of experience and understands a great deal about how to grow a business.
The company’s main product offerings center around footwear, yet they also manufacture clothing, watches, cologne and other accessories.
Adidas is a multinational corporation, being the largest sportswear manufacturer in Europe, and the second largest sportswear manufacturer in the world. Adidas reports regular annual revenues in excess of 10 billion dollars. One of the things that has made Adidas such a highly successful company is their large target market. Adidas appeals to many individuals across many key demographics by offering clothing that supplements physical activity, something that many people enjoy to do. In addition, Adidas has branded itself highly in the consumer’s mind, offering both useful athletic wear as well as a good fashionable image.
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Because of this, Adidas appeals to even those who don’t exercise or play sports often. Despite their wide and varied target markets, however, Adidas has overlooked certain niche markets that have proven very profitable for other companies.
They do certainly have room to expand and compete in these markets because of their size and existing reputability in the consumer’s mind, The product that Adidas will be adding to its manufacturing will seek to achieve market share in a very profitable niche market relating to the Mixed Martial Arts (MMA) industry and training for this type of fighting activityr Because of the recent popularity of professional MMA fighting, consumers’ demands for MMA training gear as well as MMAvrepresentative Clothing have increased. Adidas will thus capitalize on this growing demand by offering a new line of shirts labeled HardBody, Hardbody t-shirts will come in five distinct iterations. The first four are related to MMA training and helping MMA athletes improve their performance The first shirt will be a long sleeve shirt that traps heat This is beneficial for athletes wanting to burn fat and improve their cardio.
The next shirt will be the exact opposite: a shirt that’s extremely breathable non-confining for athletes to perform their best in. The third type of shirt is a support shirt that promotes good weightlifting form and less risk of injury by offering tough padding in key areas like the lower back. The fourth type of shirt will be one that is extremely tight, form-fitting and elastic, so much so that it is restrictive to the individual’s movements This shirt will be specifically for fighters’ training when they are doing boxing workouts. The restrictive shirt promotes more strength and speed, especially once the shirt is removed, The fifth and final type of shirt in the HardBody line will be one that represents the brand as well as MMA fighting and is generally for fashion purposes rather than training. Marketing is extremely important to the HardBody line’s success.
Though Adidas is already a very well established brand, they currently do not have any products that appeal directly and specifically to the MMA fan/enthusiast niche market. Thus, marketing HardBody will first of all create brand awareness that Adidas is now offering this type of gear. Secondly, marketing HardBody will make the benefits of using this sportswear for training known. There are not many well—known products which can currently compete with the features offered by HardBody. Thus the marketing will also help differentiate HardBody from many other product lines of competitor. Repeated marketing messages will establish this HardBody brand as a long-lasting and recognizable staple of MMA-related sports and fashion wear. Thus, when a consumer in this niche market thinks about their choices of buying a shirt to help their MMA training, or to show their MMA allegiance, among the first brands they will think of will be HardBody.
The marketing team for HardBody, must keep in mind, however, that merely sending messages informing consumers that HardBody exists and explaining what it does may not be enough for the line‘s success. Adidas must also make sure that the marketing messages position the HardBody brand as high quality, functional, modern, and fashionable. This will ensure popularity and a gaining of market share in the MMA niche. Marketing is extremely important to HardBody‘s success. There are many strengths that this product line has. First of all, the products are much more functional and useful for fitness goals, particularly for MMA fighters, than most other athletic clothing, In addition, the parent brand Adidas has extreme popularity and loyalty from millions of consumers, who would likely feel little hesitancy in purchasing a product from the HardBody brand, The product line also has the benefit of being specifically designed for MMA training, which likely appeals to both MMA athletes as well as fans for training and fashion.
The primary weakness of this product line centers around the fact that it is new to this niche market Consumers who already use other MMA sportswear may be hesitant to switch over because of this newness. Furthermore, the shirts are relatively revolutionary in design, Non- trendsetters may be cautious of adopting this type of training before they see others doing so, meaning that HardBody sales could be slow in the beginning. Furthermore, consumers who View MMA as more hardcore and intense than other sports may assume that the Adidas parent label (which tailors to other sports) is not designed for MMA, Opportunities if the HardBody line experiences success, there are many opportunities for moving forward with these products. First of all, there could be similarly designed pants, gloves, and other sportswear for training.
If the fashion aspect of the product line proves to profitable, HardBody could manufacture clothing accessories and perhaps even expand into footwear. One very real possibility is that the functional nature of HardBody will be extremely popular, in which case other ways that sportswear can be modified to assist in training purposes should be explored Soon after the release of HardBody and depending on its success, competitors may start offering similar products that help people train. In terms of more obvious threats, the existing companies operating in the MMA consumer niche market may increase marketing and lower prices to increase the barriers to successful entry in this market. Consumer preferences may also change and MMA may decline in popularity faster than it gained acceptance, This would practically destroy the niche market and make much of the marketing and fashion choices of this product line a failure.
Trends The most important trend for the purposes of HardBody is the popularity of MMA In addition, the public focus on fitness is gaining steam as obesity has been labeled a health epidemic As such, more consumers nowadays are focused on achieving great fitness than a couple decades ago. These trends practically built the demand for these types of products. In order to fully develop the marketing plan and tactics, a great deal of market research would need to take place, MMA practitioners and fans must be gathered and data should be extracted from these two groups in the niche market. For MMA trainers, fitness goals, terminology, and methodologies should be gathered to frame the products correctly and create a sense of extreme knowledge in the marketing. MMA fans should yield data on fashion choices and their favorite fighters, Demographic data is also useful in for figuring out when and how the messages should be delivered.
It is important that the sample that data is obtained be generalizable, thus, respondents and demographic data should be drawn from many geographic locations and many targeted age groups to help ensure that the data is not misleading or ineffective when applied to a larger population. Adidas has a great opportunity to expand their sales offerings while simultaneously delving into a new niche market. If they are careful about designing a quality product and delivering effective marketing messages through appropriate channels to targeted demographics, the company can realize a great deal of success. Only time will tell if they can truly capitalize on the HardBody brand and keep it profitable into the future
Business Proposal of Adding a New Product to the Existing Goods of Adidas. (2023, Apr 06). Retrieved from https://paperap.com/business-proposal-of-adding-a-new-product-to-the-existing-goods-of-adidas/
