4. Marketing Plan
4.1 Product Plan
Our new product: The Adidas Energy-Boost; is a groundbreaking innovation in cushioning. It provides more energy return than any other foam cushioning material in the running industry, combining soft comfort with responsive energy for the ultimate running experience. In the heat, in the cold and after countless kilometers, it performs more consistently and doesn’t lose its cushioning properties.

The mid-sole of the shoe is made out of small individual energy capsules which provides cushioning while storing and releasing energy more efficiently. The foam is designed to be durable under all conditions. The upper part of the shoe uses TECHFIT technology (durable elasticated material) with power bands engineered to stabilise your foot as it moves without compromising comfort. A soft mash inside the shoe is designed to fit like a sock.
The design of the shoe addresses the “need for speed” and fights fatigue, to improve endurance and increase energy. The running shoe will be available in four colours black, pink, green and grey, and will be positioned in the market as a premium running shoe.
The current South African market for running shoes is broad and versatile. The target market comprises of both male and female of LSM 7-9. They are concentrated in urban areas and within the age group of 18 - 40. These individuals are health conscious and do not mind spending to improve on their health. It would appeal to physically active people and runners at all levels; both professional and casual. This target market is brand loyal and would rather spend their money on their preferred brands rather that less expensive alternatives.
The table below represents competitor products that are currently available on the market have been identified as as direct competition for the Energy-Boost shoe: Product 1: Nike Flyknit Lunar1+ | Product 2: Puma Faas 800 | | | A snug and agile shoe that fits like a sock and is as light as a feather | Innovative upper, constructed entirely of tightly woven polyester yam that varies in density | More open in targeted areas that need greater flexibility or ventilation and tighter in areas that demand support | Ultra light & combines revolutionary second skin fit and ultra soft Lunarlon cushioning to give you the perfect run | Single upper layer that eliminates overlays, reduces weight & minimises waste | Greener: creates little waste, making it efficient to produce | | Inspired by Jamaica | Stability shoe featuring a one-piece midsole. | Replaces hard, rigid technologies in stability with amped up version of Bioride Technology | Has EverTrack for durability | EverRide for cushioning | Ortholite Sock Liner to keep you fresh | Minimal design features a catch (wall) and release (grooves) system tha guides the foot into a neutral position - which is ideal for pronators. | Lateral release grooves compress to absorb shock and encourage the momentum to continue along the foot's lateral edge | |

Running shoes are used by professional athletes, gym fanatics and ordinary non athletic people that enjoy walking in comfortable “tekkies”. The Energy running shoe is mainly meant for the LSM 7 , 8 and 9. These individuals manage to cover all their monthly costs and still have enough disposable income. The Adidas Energy shoe is targeted at both males and females who live active lives. The age group ranges form 18- 40 years
4.2 Pricing Plan
The energy-boost product line will be positioned in the market as a premium running shoe, targeting high net worth customers who are “serious” about their running. Thus, a high pricing strategy will be adopted to correlate with and support the customer value proposition.
Identified competitor product retail pricing for Nike and Puma are R1500 and R800 respectively. The Energy-Boost running shoe will sell at the price of R1200.00 per pair. The minimum retail/promotion price would be allowable at R1000. Response to changes in competitor prices will be within the allowable minimum price.

Refer to the annexure XX for the 36 month projected Energy-Boost profit and loss statement for product costing.
4.3 Distribution Plan
The primary distribution will be handled by UTi.
The new product range will be available for point of sale at the retailers: 1. Wholesalers – Sportsman Warehouse, Tekkie World 2. Retailers – Edgars, Total Sports, Cross Trainer, Sports Scene 3. All Adidas stores countrywide as well as 4. eCommerce - “Zando.co.za” and “style36.co.za”.
4.4 Promotion Plan
The products will be promoted through activations at the following places and events; * Marathons; * Adidas Running clubs and Park-runs; * Virgin Active Gyms; * Targeted advertising in running magazines and sites, such as Runner's World and Entryonline.com * Lifestyle Clubs i.e. Run and Walk for Life; ASA affiliated Running Clubs; and * In store promotions and visibility through the use of visual aids. (Product Banners and Adverts)
New gym and lifestyle club members will be offered a 10% discount voucher for a limited period of time; valid from August - September 2013.
The Energy boost range will be visible at major marathons and qualifier races countrywide. e.g. Two Oceans Marathon, Comrades Marathon and Om die Dam etc. At these events runners will be given the opportunity to try on this shoe.