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JOMC
279
Research
Final
Paper
Topic
Adidas
Footwear Division
Problem:
o Adidas has always been a rather large company known for its performance apparel and
footwear, but since 2011 its 9% share of the footwear market has declined every year.1
When Adidas ventured into the fashion footwear industry, it was welcomed with mixed
results. Nike continues to dominate the market, and other smaller brands are constantly
developing strong followings, so Adidas has to keep itself relevant. Launching the Yeezy
Boost (a signature shoe done with artist Kanye West) has helped, but it still has much
more ground to cover if it wants to see its market share leave the red and enter the green.2
This research study will focus on the fashion footwear ‘sneakerhead’ market, which
ranges in age, but the heart of the industry lies within people aged 18-35.
Research Questions (RQs):
o How can Adidas best appeal to “sneakerheads?”
o What lifestyle/social/fashion/trend insights can be discovered to help attract a
larger following for the brand?
Research Plan:
• Secondary/Syndicated Research/Digital Analytics
o Why Here? Why in this order?
§ While secondary research can be used to reinforce findings thought the
research process, it is often used to set the scene of the research. When
done properly, secondary research serves as a way to understand the
brand, guide further research, and to clarify any research questions.
o Why This Method?
§ Secondary research consists of analyzing preexisting data in order to
answer the question proposed. Secondary research is used because it
enables the researcher to find out information quickly and inexpensively.
The researcher does not have to organize his/her own study; instead, one
can easily find and take advantage of the vast amount of previous studies
available.
o Databases:
§ There are two main databases that would provide the majority of
background information, MRI Plus and Statista.
§ MRI gives statistics and information based on demographics. This site
supplies the researcher a breakdown of the typical brand consumer by age,
income, ethnicity, geographic location, and education. MRI also shows
what magazines, cable services, TV shows, and websites that the
1
http://www.highsnobiety.com/2015/11/09/nike-adidas-market-shares/
2
http://www.highsnobiety.com/2015/11/17/adidas-consumer-strategy/

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consumers prefer. This information offers a look into the consumption
patterns of the market segment that Adidas should attempt to understand
and cater their message to.
§ Statista provides the researcher with charts that shine a light on the
footwear sales for Adidas and the market share breakdown of the footwear
industry more generally. This information can help the researcher
understand where the brand stands compared to its competition and where
it needs to improve. From here the researcher can diagnose what the brand
is doing correctly and incorrectly, while also getting an idea of where the
competition is capitalizing.
o Findings
§ MRI: I would search for any information that would help me correctly
understand what demographics we are currently capitalizing on and what
demographics we need to reach out to in the future. I would hope to find
information that would allow me to construct consumer profiles. These
consumer profiles would create a great foundation for further analysis and
primary research techniques.
§ Statista: I would search for information regarding the entire footwear
industry in order to understand where we stand as a brand relative to other
footwear brands. I would hope to find information regarding overall brand
sales and footwear sales, while also looking at how the brand does
globally. Another key insight that can be drawn from Statista is the
number of footwear brands in the market as well as their annual ad spend,
which gives the research team an idea of how we can compete with the
flood of new entrants and how they are successfully building their
customer bases.
o Applying The Findings
§ Bringing together the findings from MRI and Statista, I would be able to
create a perfect foundation for further primary research at minimal cost—
the only cost is the time for gathering this research. MRI supplies
information to create consumer profiles, which I can construct for not only
Adidas, but also every brand that directly or indirectly competes with us.
The information gathered from Statista will allow me to see our brand
performance. Tying the results of these two sources together, I can
uncover where the brand is suffering and thriving and highlight areas of
focus that the brand needs to tackle in order to stay relevant in the
industry. This would give the brand a direction for further primary
research and focus that research on brand-specific areas (while saving
money and time in the process).
o Other Sources of Secondary Research:
§ Highsnobiety & other Sneaker Blogs: As the Internet becomes
increasingly important, reliable blog sites become more and more
informative and educational. These sites desire to stay relevant, much like
any other brand, and to do so they need to constantly update their sites
with relevant and accurate information. While these sites may not have the
general statistical information that can be found on sites like MRI and

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Statista, for niche markets like the “sneakerhead” industry these sites are
invaluable. I believe that brands like Adidas need to constantly monitor
these sites for glimpses into the sneaker culture if they want to be
successful.
• Focus Groups & Interviews/Individual Interviews (IDIs)
o Why Here?
§ Working off of the secondary research, focus groups and interviews would
be better directed. The secondary research will develop a better
understanding of the brand and it’s competitors for the research team. It
will also allow the team to create better and more thorough questions,
which will lead to more in-depth answers.
o Why These Methods? Differences?
§ Focus groups are one of the options for speaking directly to the customer
and gaining their reactions to ideas or concepts. Focus groups bring a
group dynamic into the mix, which allows the client to gain multiple
perspectives from an interactive group setting. The members of a focus
group feed off of each other and come up with a broad array of
concepts/ideas.
§ Interviews are another option for speaking directly to the customer,
except this time you are speaking to a smaller group (usually one-on-one).
Interviews allow the client to gather a deeper, richer understanding of the
participants’ perspectives. The participants are not influenced by the group
dynamic and can feel more open to share personal and/or embarrassing
details on certain topics.
o Who To Interview
§ The footwear industry is a global and diverse one, with people of all ages
interested in what they wear on their feet. This may be great for business,
but it adds a few extra layers of difficulty to the process of organizing
focus groups and interviews. Therefore, this research study will be
focusing on American sneakerheads/footwear enthusiasts.
§ When organizing these direct methods, there are a few key decisions to
make.
• How diverse do you want the group to be?
• Do you want to discuss the product with loyal customers or an
uninterested party? Maybe both?
• Should you talk directly to the “wearers”? Maybe speaking to a
party who could potentially buy the item as a gift is a preferred
route?
§ For this particular study, we are focusing on the immerging footwear
fashion industry (18-35 year-olds) along with the gradually declining
Adidas consumer base.
§ I believe that each focus group should be organized with consumers of
similar viewpoints and ideologies toward the brand. Matching Adidas fans
with other Adidas fans and matching Nike loyalists with other Nike
loyalists. People feel more comfortable with like people, and therefore

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they will be more open and engaged—these groups can always be
compared later.
§ This is not to say that we would only focus on true footwear fanatics. A
few groups should focus on uninterested parties as well, like people who
never wear athletic shoes, or people strongly opposed to the immerging
fashion shoe industry. I believe bringing in a few diverse perspectives
would offer unique and invaluable insights—you never know, maybe all
Nike fans would jump ship if Adidas created a new lacing system or a
lightweight outsole.
§ If I were to simplify the purchasing process it would look something like
this; some people wear the shoes, others just buy them for gifts. Should we
hear from both sides of the spectrum? I think so, but the main focus should
rely on the actual “wearers” because they are the ones who will ultimately
decide the brand’s fate.
o IDI/Focus Group Setting
§ Interviews: Interviewing a person one-on-one could be preformed inside
an actual sneaker store, like footlocker or a boutique. This just seems like
the right environment for an interview. The sneaker store environment is
perfect for a detailed interview for a few reasons. First, it makes the
participant feel comfortable and makes the interview feel more natural.
Second, the store is filled with sneakers of all different kinds and brands,
allowing the moderator to obtain a visual explanation, rather than just a
vocal description.
§ Focus Groups: Focus groups are generally too large to be preformed in a
sneaker store. These should probably be preformed in a ‘lab’ setting, but
including a few popular shoe styles from various brands is not a bad idea.
This would make the environment more interesting for the participants and
give them a physical product to describe their viewpoints.
• Online focus groups could also be useful. Many of the younger
consumers may be more likely to participate online because it can
be viewed as more convenient and faster. This format not only
increases participation, but also eliminates geographical
boundaries, and saves the client some money.
o Length
§ Interviews: Typically, interviews range from 30 to 60 minutes. Since
these interviews will be preformed in a relaxed and casual environment, I
do not foresee a problem with a 45-60-minute interview. This lengthier
interview will allow the participant to get to know the moderator and take
their time when discussing their feelings.
§ Focus Groups: Focus groups could range anywhere from 60 to 90
minutes. I think a shorter time could be scheduled, around 60 minutes, but
if the conversation is creating rather interesting insights, the group could
be asked to continue or a few members could be called back for further
insights. I have yet to meet a person interested in shoes who does not want
to talk about it constantly. If the right participants are gathered, I believe
focus groups could result in some truly remarkable findings. This shorter

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time period should draw more volunteers because it is less obstructive on
their daily schedule.
o Quantity
§ While these methods are not incredibly expensive, focus groups costing
around $5,000 to $10,000 and interviews costing much less, one has to
factor time into the equation. Both focus groups and interviews require
research on the topic, development of though-provoking and relevant
questions, traveling, and of course the actual performance. Not knowing
the budget, nor the timeframe I have to complete these events, I would
recommend doing at least enough of them to begin gathering a consensus.
Somewhere between 15-25 focus groups should suffice. Interviews, since
they can be completed in rather quick succession, should be preformed 25-
50 times. However, if after a dozen focus groups and interviews the results
are all over the place, it may be time to go back and re-analyze your
question wording or content of the questions themselves.
o Questions:
à Introductory/Getting to know the participant + Moderator Qs ß
1. What is your favorite thing to do in your free time?
a. Tell me more about [concerts/hanging out with friends]
i. Why do these activities matter to you?
2. What are some of your interests/hobbies?
a. What about [skateboarding/blogging/shopping] interests you?
i. What feelings/memories are evoked when
[skateboarding/blogging/shopping]?
3. If you had to pick a celebrity or influential figure that you most
admire/enjoy, who would it be?
a. Why do you feel that way about [Kanye West/Jay Z/Ronnie Fieg]?
b. In what ways do you relate to [Kanye West/Jay Z/Ronnie Fieg]?
4. What do you enjoy reading/learning about? Magazines? Authors? Blogs?
Social media accounts?
a. What about that [magazine/blog/account] peaks your interest?
i. In what ways does that [topic/issue/person] matter to you?
ii. Where do you enjoy reading about that topic? (Social
media, online, paper form, etc.)
àNext Q serves as a transition to more brand-specific Qs ß
5. What are your thoughts on how Adidas handles it’s social media and
online presence?
a. Why do you find it [interesting/engaging/boring]?
b. What platforms/concepts would you like to see in the future?
6. What brands, if any, do you consider yourself
a. What is it about [Ralph Lauren/Lacoste/Patagonia] that speaks to
you?
i. How much of a role does [quality/look/price point] matter
to you?
à Entering into more specific footwear questions ß
1. What brand(s) of shoes do you prefer?

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a. What is it about [Nike/Adidas/Asics/Puma] that speaks to you?
i. How much of a role does [comfort/style/performance]
matter to you?
ii. What is/are your favorite model from that company?
2. What factors impact your general purchasing decisions?
a. With shoes more specifically?
i. How would you describe [expensive/value/style]
3. What about brand collaborations interests/bothers you?
a. Why you feel that way towards collaborations?
i. What approaches to collaborations might make you feel
differently?
4. How do you feel about the Adidas x Kanye West “Yeezy” Collaboration?
a. Why do you think it is [awesome/typical/unique]
i. Would you like to see more of it in the future?
5. What would you like to see in the future from Adidas?
a. Why does a [new upper/collaboration/boot] interest you?
i. Do you like the newer style of our three-stripe logo, the
classic, or the newer styles without much branding?
o Data Analysis
§ Since these methods are generally more qualitative than quantitative, they
leave the research team with plenty of room for interpretation. This is not
to say that there are no valuable findings to be found, instead, qualitative
data can actually provide much more detailed information and deeper
emotional insights.
§ The moderator can create descriptive narratives of the participant’s
responses and group their ideologies to form a general consensus. From
this consensus, the research team can construct shared meanings of the
brand and its product offerings and use it to create descriptive consumer
profiles. The team can also discover relevant themes throughout the
process that will be useful for the future of the brand.
§ There are 3 key things to look for when analyzing this data. Frequency,
specificity, and emotions. Frequency is important because it shows how
popular the subject was during the research methods. The more a topic
was spoken about or mentioned in a group, the more significant that topic.
Specificity, or how detailed the responses were, is another key factor. A
topic that was mentioned consistently can be important, but so is the
amount of detail that was given. The more detail that is supplied, the more
insights that the research team can possibly develop. Lastly, and arguably
most importantly, are emotions. Emotions can be measured in a number of
ways, through speech, by physical reactions, and even by facial
expressions.
§ Qualitative research can even help the research team discover certain
colloquial phrases used by the sneakerhead community.
o Differences In Designing
§ Interviews would be much more structured because they are one-on-one.
This setting allowing the moderator/Interviewer to ladder his questions,

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thus producing a much more routine Q&A. This is not to say that an
interviewee cannot say something that will change the direction of the
interview, they certainly can and hopefully will, but in general the
interview should be more structured because it is following the perspective
of one individual and his/her perceptions.
§ The focus group should begin on a certain topic, but the moderator should
also prepare a given time frame for the discussion segment and allow
enough time to go over every question in the originally suggested period.
§ So while both strategies are somewhat structured (from general to more
specific), they should be controlled in slightly different ways.
• Participant Observations/Ethnographies
o Why Here?
§ The point of doing ethnographic research after the focus groups and
interviews is to see to what extent the information gathered from focus
groups and interviews is correct. If the focus groups and interviews were
performed properly and well organized then the observer should see a lot
of similarity in the findings from the ethnographic research. So, this style
of research should act as reinforcement as well as to develop new insights
that participants were to shy to share or just instinctively do without
noticing.
o Why This Method?
§ Ethnographies help describe human interactions and behaviors in real-life
environments. This method can help discover how people spontaneously
make choices during their normal—uninterrupted—daily routines. There
is a lot to be gained from simple observation.
o Where To Observe
§ There are multiple locations where observation could gather advantageous
results.
§ Point of Sale
• This is a necessary piece to observe because it gives the observer
the ability to see how choices are made once in the store. How
costumers view the products, talk about the materials, etc.
o Generic Shoe Stores: Foot Locker, Champs, Finish Line,
Nordstrom, and maybe even Neiman Marcus.
o Specific Brand Locations: Adidas, Nike, New Balance,
Puma, Asics.
o Boutique Shoe Stores: Ubiq, Bows and Arrows, Concepts.
§ The Shopping ‘Experience’
• An overview of the shopping experience is necessary as well. This
will give the research team a better understanding of general
purchasing decisions.
§ Daily Routines:
• You cannot get all of your insights from only the point of sale.
Understanding what gets people excited, what gets them interested

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in the brands, and even what they do differently online versus in
store.
o Sneakerheads
o Athletic men and women
o Fashion bloggers
o Who/What To Study
§ One might think that observing every person who walks in the door of
sneaker stores and writing down their every move is the goal of
ethnographic research, but alas they would be wrong. Not every
movement is relevant to the research project, but with that said, it is also
important not to ignore seemingly unimportant moments because you
never know what might create a unique insight. Ethnographies offer the
researcher an in-depth look into a—minimally altered—natural
environment. The people who do more than pick up every shoe in the store
are worth watching. The customers who visually dissect and physically
examine the shoes—pulling on the laces and feeling the texture of the
upper—are the customers who are necessary to observe. These customers
will be the source of any valuable information and you will be able to tell
their thoughts on the shoe based on their facial expressions and interest in
showing their friend/girlfriend/family member or of course their social
media following.
o Length Of Observations
§ By using a digital recorder (found on most smartphones) the researcher
should be able to record their findings at a particular location for a while
without causing too much ‘pollution’ to the site. The benefit of doing
research on the shoe market is that where there is one shoe store, there are
probably a few more, which cuts down on wasted time. Shoes stores are
places people go to buy shoes, so that is obviously what they are paying
attention to. With that being said, no one likes to be studied so being
caught watching consumers will pretty much end the research you can get
accomplished at that store that day. Word of mouth spreads awfully fast.
§ Shoe styles, just like clothing styles, are constantly changing and trends
come and go so observing a shoe store for a few days in a year just
wouldn’t do the trick. Observing a few days a week for a couple months
should give the researcher time to develop a more complete understanding
of consumers preferences and allow more than enough time for the shoe
market to cycle through numerous new releases.
o When would you observe?
§ I believe observing on the weekends would be the most effective. These
are the days where people typically have the most free time. If there were
only time for one day per week of observation than Friday would most
likely be the best choice. Fridays at around 6-8 when people are just
getting off work—with their paycheck in hand—looking for a way to relax
after a long day. The busier days offer both, a better camouflage for the
researcher to blend into the store environment, and an opportunity to
maximize the time spent observing.

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o How would you analyze your data?
§ A proper analysis of ethnographic data starts from the very beginning.
When observing it is necessary to take very detailed and “thick” field
notes. The next step is to pull out the overarching themes and observations
to figure out “what it all means.” This could include information about
how music effects purchasing patterns to how social interactions with
friends affect opinions. Interactions with employees, where shoppers
gravitate to, and when certain groups of people come into the store can all
be important insights. The key to ethnographic analysis is to create
umbrella topics where your insights can fall under. These topics can serve
as subheads, which should help organize the findings. A key piece of
advise when doing ethnographic research is that no interaction is too small
to take note of.
• Survey Research
o Why Here?
§ After the research team has spent time getting to know the brand with
secondary research, understanding consumers with focus groups,
interviews, and ethnographies, it is time for a much larger consensus, the
survey. The reason for placing the survey last in this research study is due
to the massive audience that will be involved using this one medium.
Unlike focus groups and interviews, the questions cannot easily be altered
after each participant, so the survey should be as accurate and all
encompassing as possible.
o Why This Method?
§ Survey research is one of the most popular methods for collecting
quantitative data. It is relatively inexpensive, extensive, flexible, and
dependable. Surveys can be administered on multiple different platforms
and if created well, responses will be easy to attain, read, and will be
exceedingly accurate.
o Questions?
à This section speaks to purchasing choices more generally ß
§ How likely are you to buy from one of these online retailors? (5 Point
Likert ‘Favorability’ Scale)
• Nike.com
• Adidas.com
• Zappos
• Nordstrom
• Macy’s
• 6pm
• FinishLine.com
• FootLocker.com
• Amazon

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• PacSun
• Zumiez
• Other
§ How likely are you to buy from one of these brick and mortar
retailors? (5 Point Likert ‘Favorability’ Scale)
• Foot Locker
• Finish Line
• Macy’s
• Nordstrom
• Nike Store
• Adidas Store
• PacSun
• Zumiez
• Other
§ How likely are the following concepts to affect your clothing and shoe
shopping? (5 Point Likert ‘Favorability’ Scale)
• Price
• Value
• Quality
• Social Influence/ Recommendations
• Design/Style
• Color
• Fit
àThis section speaks to more specifically to the shoe market ß
§ How often do you buy a new pair of shoes?
• Not often (once a year or less)
• Somewhat often
• Neither not often nor often (whenever I need a pair)
• Often
• Very often (more than once a month)
§ How much money would you normally spend on a new pair of shoes?
• $1-$30
• $31-$60
• $61-$90
• $91-$120
• $121-$150
• $151+
§ How likely are you to buy from the following shoe brands? (5 Point
Likert ‘Favorability’ Scale)
• Nike
• Adidas
• Diadora

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• Puma
• New Balance
• Asics
§ How does the Adidas brand come across to you? (Matrix Table)
• Affordable – Expensive
• Low Quality – High Quality
• Boring – Exciting
• Serious – Friendly
• Traditional – Innovative
• Ordinary – Unique
§ What do you think about the Adidas collaboration with Kanye West?
• Do not like it
• Do not really like it
• Do not know about it/I am indifferent about it
• Somewhat like it
• Like it
o Survey Flow
§ My survey would begin with general purchasing decision questions like
those posted above. This would introduce the topic of shopping as the
main idea of the survey as well as get a better understanding of whether
consumer shop more online or at brick and mortar stores. This section will
also point to some of the more popular store options.
§ Following the general section, I would focus on more specific questions
regarding the shoe industry. This section would explain the price point
people expect to pay for their shoes, what qualities that they value in a
purchase, and how often they actually purchase a new pair of shoes. This
section would also dive into some brand specific questions as well as
tackling questions about perceived qualities of the brand, favorability of
collaborations, and feelings about the Adidas personality.
§ The survey would end with general demographic information like age,
marital status, education and income level, geographical location, gender,
and a free response about your favorite hobby/activity.
o Measurement Styles
§ I would use mostly 5-point Likert scales. I use this type of scale because it
offers a variety of choices for a single question in an easy to understand
format. These choices can be ranked and measured by the mean. This style
of question also offers a middle point where someone without an
opinion—or someone who doesn’t believe in one side or the other—can
choose a middle of the road point. The 5-point Likert scales are also very
commonly used, so they are understood by the majority of the population,
which limits the possibility of confusion, therefore increasing the level of
accuracy of the survey overall.
§ I also used a matrix table to simply gain an idea of what consumer think of
a certain topic; in this case it is the brand itself. I use matrix tables because
they also have a middle ground point, which offers more than a simple
‘yes or no’ question would.

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§ I incorporated a few multiple-choice questions into the survey to break up
the larger and more time consuming questions. I believe this style should
limit “survey fatigue,” which occurs when participants start clicking on
the first thing they see to get through the survey as fast as possible.
o Expected Data
§ Surveys give the research team the ability to ask multiple questions in a
short period of time and in a way that is convenient to the participant.
Surveys are also typically anonymous which should result in more honest
answers. While focus groups and interviews might allow for deep analysis,
most participants will hold some information back due to embarrassment
or risk of feeling like an outcast. Surveys eliminate that risk, thus allowing
more free and sincere responses.
§ Although the resulting data from surveys are mostly quantitative and does
not consist of rich, deep qualitative responses, I believe that they offer the
best impression of how consumers think. With the help of bivariate and
multivariate analysis, researchers can test hypotheses of association to
help predict causality as well as discover new trends in thinking and
decision-making.
§ Analysis tools found on sites like Qualtrics make survey data easier to
analyze. These tools allow you to find the mean, median, and mode for
Likert scales, which allows the researcher to uncover how the group as a
whole feels about a certain brand/product/feature/etc. These tools also
supply the standard deviation, which shows the amount of variation within
a set of data. With tools like these, surveys have become a useful way to
gauge a population sample’s perception of a vast amount of topics without
costing a large amount of money.
§ This data will help the research team refine the existing customer profiles
to create more accurate unbiased target personalities. Data from this
process will also create a ranking scale of opinions for diverse topics; the
Likert scale gives a range of interest for the topics, which allows
researchers to understand whether a consumer just likes something or if
they love it.
o Who To Sample
§ The survey should be sent out to only relevant customers, but people of all
ages and locations like shoes so the sample selection process becomes a
difficult one. By focusing this survey on the American population,
specifically sneakerheads, I believe the survey will be more directed and
easily distributed. It should be given to preexisting and new customers of
major Adidas distributors. Since the survey is the last piece of this
research study, I would argue against sending it out randomly and instead,
focus on the currently engaged customers. So instead of sending a link out
to anyone registered to a sneaker or fashion related page, hand the survey
out in-store and online and give the participant a discount for his time.
This simple system will encourage participation and may even increase
sales through brand recognition.
o Quantity Of Responses

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§ Since the survey will be focusing on the American sneakerhead
population, 500-1,000 responses should suffice. This amount of data is
both manageable and informative. This range of responses should give us
a relatively low margin of error (roughly +/- 3%) and, if our questions are
properly developed, we should find rather consistent responses with key
insights to help develop the brand.
o Distribution
§ There are two ways that I think would be the most effective for
distribution.
1. In-store promotion: This is the easiest way to get a survey filled out
because the consumer is in the store buying something—or at least wants
to buy something—and they received a special discount or sticker pack for
doing so. If the survey is short enough and interesting enough, the answers
you will receive should be very honest and informative.
2. Online: Everyone is always looking for a deal and I am amazed at what
things people do just for free shipping or 10% off a purchase. Instead of
running a promotion, a major Adidas distributor (like Foot Locker/Finish
Line) could run this survey as a promotion. Online surveys also would
reach a larger segment of the target market.
o Both of these survey distribution methods make sure that the survey is
only going to be filled out by the customers Adidas is interested in
targeting.
o Concept Testing
§ Essentially, this survey is attempting to direct the Adidas brand by
showing what avenues to explore for future projects in the fashion sneaker
industry. This survey should dive into their current successes, soon to be
released products, and also give them insights on where to improve or kill
a concept.
• Conclusion
o Adidas needs to bring itself back into the spotlight and to do this they should
begin to really focus on the immerging sneakerhead market, which is something
that they currently have a solid foundation in. By preforming an intensive
research study, the brand will develop a better understanding of the target market
and thus understand how to proceed. With the research study complete, Adidas
should appreciate the consumers it is attempting to reach, including their social
habits, lifestyle, interests, and style. A deep and comprehensive understanding of
the target market will serve as a guide to keep the Adidas brand relevant and
successful for the future.