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MI ADIDAS
MASS CUSTOMIZATION
     INITIATIVE
MEANING OF MASS
                        CUSTOMIZATION..

           • Production of personalized or custom-
    tailored goods or services to meet consumers'
         diverse and changing needs at near mass
                                 production prices.
               • Customer is integrated during co-
  design, configuration and product specifications.
• Mass customization is designed to deliver highly
        customized products with mass production
                                        efficiency..
MI ADIDAS..
    This case examines adidas “mi adidas”
   initiative aimed at delivering customized
     athletic footwear to retail customers. It
         discusses the practical implications
    associated with expanding the initiative
from a small pilot to a wider operation with
                            a retail presence.
• Mi adidas was launched in April 2000 to
  provide consumers with a chance to create
  unique athletic footwear produced to their
  personal specifications. It was an entirely
  new idea to customize product, test
  consumers’ demands and fulfill their
  expectations as far as possible.
Phases of mi adidas…
Phase 1: The mi adidas Pilot

 It paid attention towards the evaluation of
        the feasibility and prospects of mass
customizing athletic shoes . The objective
  was to offer a customized product to test
    customers demand for the product and
fulfill their expectations as far as possible.
               It included the following steps-
 Product selection
         Free shoes as for testing
                        Marketing
              Customer feedback
   Check on competitors activities
This led to a positive impression of the
        brand amongst the customers.
Phase 2-The mi adidas Retail Tours
• After the success of phase -1 & satisfying
  customer, mi adidas entered phase-2 where it
  paid more attention towards the retail stores.
  Retail units were set up which were more
  durable and customer friendly.
• A large number of retailers were willing to take
  part in this phase but only 50 were selected.
• Adidas paid more attention towards the small
  specialty stores where in their products can be
  easily marketed and customer can easily access
  the customization process.
• As the first phase was fully event based, now the
  second phase was 90% on the shoulders of
  retail outlets and 10% event based.
• There were some problems faced by the
  retailers regarding the geographical location and
  the fee of promoting and marketing the brand.
  This also hampered the engagement of
  customers in the project.
The main stress was laid on the customized fit
  over customized design. For this purpose the 3D
  foot scanner was replaced by a simple foot
  scanner unit for the best measurement for length
  and width.
The prices of the customized shoes were also kept
  at premium about 30-50% over the catalog
  price.
After being successful in the field of soccer
  shoes, mi adidas was now ready to enter into
  the running shoe market and launched its
  customized shoes during marathons.
• As the demand for the customized shoes
  increased, Mi adidas faced some problems but
  slowly and steadily it tried to maintain fit, design
  and performance of the product.
Competitors...
                           Nike
 New Balance Athletic Shoe, Inc.
              Custom Foot Corp.
          Creo Interactive GmbII
Customatix.com of Solemates, Inc.
EVENT
RETAILER                KIOSK     E-ROOM




  2nd LEVEL RETAILERS           FACTORY




                          CUSTOMERS
Check in         Scanning     Fitting




           Designing        Testing
Phase-3
• This phase will pay more attention towards
  bringing of new shoes under customization
  process such as basketball and tennis foot
  wears.
• Targets has been set for the shoes like
  Precision, Supernova, Bromium and
  Barricade.
Phase-4
• This phase will pay more attention
  towards setting up of permanent
  MC units in adidas stores and
  selected specialty stores.
Future of mi adidas
• Consumer feedback was
  enthusiastic and enticing for
  adidas to repeat the offerings
  of mi adidas.
 •In the long run only those mass
 customization systems will be
 successful that manage the
 tradeoff between the benefits
 and costs of customer
 integration sufficiently.
Imagine
personalizing your
shoes on your feet
      without even
    removing your
            shoes?
What was Adidas Distribution
 strategy for mass
 customization approach?
Can you suggest an alternate
 distribution strategy for
 Adidas?




      Discussion..
Alternative strategies..
Emphasize on Horizontal Growth
 Strategy with Focus on Diversification-
 expansion of its products in other
 geographical locations, for example, in
 emerging countries like India, Brazil and
 Russia where the market is growing very
 rapidly.
Also consider to diversify its sports products by
 using price strategy. For instance, under pricing
 strategy there are premium prices with high
 quality products, medium price with high-high
 quality or high medium quality of products, or
 low price with average quality. By diversifying
 such many pricing strategy, customers will have
 much choice and more can choose according to
 their affordability.
Stability strategy
Adidas can stop or limit its production towards
 some products to have an innovation and
 redesign. This can help to increase the
 company’s products image and reputation. This
 is because over produced products will cause
 products low value and it will not be appreciated
 as it will be easy to get.
Presented
by-         GROUP 7
            Devendran S.P
            Gaurav Khatri
            Pushpam Shree
            Siddharth Tripathi
            Timsi Luthra
            Vandana Madhuri
             Singh
Thank you for your
time and attention..

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Mi adidas

  • 2. MEANING OF MASS CUSTOMIZATION.. • Production of personalized or custom- tailored goods or services to meet consumers' diverse and changing needs at near mass production prices. • Customer is integrated during co- design, configuration and product specifications. • Mass customization is designed to deliver highly customized products with mass production efficiency..
  • 3. MI ADIDAS.. This case examines adidas “mi adidas” initiative aimed at delivering customized athletic footwear to retail customers. It discusses the practical implications associated with expanding the initiative from a small pilot to a wider operation with a retail presence.
  • 4. • Mi adidas was launched in April 2000 to provide consumers with a chance to create unique athletic footwear produced to their personal specifications. It was an entirely new idea to customize product, test consumers’ demands and fulfill their expectations as far as possible.
  • 5. Phases of mi adidas…
  • 6. Phase 1: The mi adidas Pilot It paid attention towards the evaluation of the feasibility and prospects of mass customizing athletic shoes . The objective was to offer a customized product to test customers demand for the product and fulfill their expectations as far as possible. It included the following steps-
  • 7.  Product selection  Free shoes as for testing  Marketing  Customer feedback  Check on competitors activities This led to a positive impression of the brand amongst the customers.
  • 8.
  • 9. Phase 2-The mi adidas Retail Tours • After the success of phase -1 & satisfying customer, mi adidas entered phase-2 where it paid more attention towards the retail stores. Retail units were set up which were more durable and customer friendly. • A large number of retailers were willing to take part in this phase but only 50 were selected. • Adidas paid more attention towards the small specialty stores where in their products can be easily marketed and customer can easily access the customization process.
  • 10. • As the first phase was fully event based, now the second phase was 90% on the shoulders of retail outlets and 10% event based. • There were some problems faced by the retailers regarding the geographical location and the fee of promoting and marketing the brand. This also hampered the engagement of customers in the project.
  • 11. The main stress was laid on the customized fit over customized design. For this purpose the 3D foot scanner was replaced by a simple foot scanner unit for the best measurement for length and width. The prices of the customized shoes were also kept at premium about 30-50% over the catalog price. After being successful in the field of soccer shoes, mi adidas was now ready to enter into the running shoe market and launched its customized shoes during marathons.
  • 12. • As the demand for the customized shoes increased, Mi adidas faced some problems but slowly and steadily it tried to maintain fit, design and performance of the product.
  • 13. Competitors... Nike New Balance Athletic Shoe, Inc. Custom Foot Corp. Creo Interactive GmbII Customatix.com of Solemates, Inc.
  • 14. EVENT RETAILER KIOSK E-ROOM 2nd LEVEL RETAILERS FACTORY CUSTOMERS
  • 15. Check in Scanning Fitting Designing Testing
  • 16. Phase-3 • This phase will pay more attention towards bringing of new shoes under customization process such as basketball and tennis foot wears. • Targets has been set for the shoes like Precision, Supernova, Bromium and Barricade.
  • 17. Phase-4 • This phase will pay more attention towards setting up of permanent MC units in adidas stores and selected specialty stores.
  • 18. Future of mi adidas • Consumer feedback was enthusiastic and enticing for adidas to repeat the offerings of mi adidas. •In the long run only those mass customization systems will be successful that manage the tradeoff between the benefits and costs of customer integration sufficiently.
  • 19. Imagine personalizing your shoes on your feet without even removing your shoes?
  • 20. What was Adidas Distribution strategy for mass customization approach? Can you suggest an alternate distribution strategy for Adidas? Discussion..
  • 21. Alternative strategies.. Emphasize on Horizontal Growth Strategy with Focus on Diversification- expansion of its products in other geographical locations, for example, in emerging countries like India, Brazil and Russia where the market is growing very rapidly.
  • 22. Also consider to diversify its sports products by using price strategy. For instance, under pricing strategy there are premium prices with high quality products, medium price with high-high quality or high medium quality of products, or low price with average quality. By diversifying such many pricing strategy, customers will have much choice and more can choose according to their affordability.
  • 23. Stability strategy Adidas can stop or limit its production towards some products to have an innovation and redesign. This can help to increase the company’s products image and reputation. This is because over produced products will cause products low value and it will not be appreciated as it will be easy to get.
  • 24. Presented by- GROUP 7 Devendran S.P Gaurav Khatri Pushpam Shree Siddharth Tripathi Timsi Luthra Vandana Madhuri Singh
  • 25. Thank you for your time and attention..