Business & Finance - Marketing KPI Proposal Assignment

Adidas & Disney KPI Assignment (Expanded Full Version)

Part A – Developing KPIs

Industry, Company, and Marketing Needs/Pain Points

Adidas is a global leader in the sportswear and lifestyle apparel industry, headquartered in Herzogenaurach, Germany. Founded in 1949, Adidas has grown to become the second-largest sportswear manufacturer in the world, with operations in over 160 countries. Its portfolio spans performance footwear, lifestyle sneakers, athletic apparel, and accessories. The brand emphasizes innovation, creativity, sustainability, and inclusivity, seeking to inspire people through both sport and culture. In 2023, Adidas reported revenues of more than €21 billion, with lifestyle sneakers and apparel representing a growing portion of its business. Collaborations with pop culture icons, entertainment franchises, and designers such as Marvel, Star Wars, and Ivy Park have expanded Adidas’s cultural footprint.

In Argentina, Adidas has long-standing cultural credibility through its sponsorship of the Argentine National Football Team. Yet it faces fierce competition: Nike has aggressively pursued the performance and lifestyle segments, while Puma has expanded affordability and street culture relevance. Argentine consumers are both brand-conscious and price-sensitive due to economic volatility, which makes premium pricing challenging but also creates opportunities for exclusive, limited-edition product drops tied to cultural moments.

Marketing Needs: - Strengthen Adidas’s presence in the lifestyle sneaker and apparel market in Argentina. - Deepen cultural relevance among Gen Z and Millennials motivated by exclusivity, sustainability, and digital experiences. - Drive engagement through digital-first campaigns using AR, influencers, and app-based gamification. - Boost sales of capsule collections tied to entertainment partnerships. Pain Points: - Nike’s dominance in Latin America and Puma’s affordability edge. - Argentina’s inflationary economy makes it difficult to maintain premium pricing. - Crowded sneaker market with limited differentiation. - High risk of consumer skepticism if partnerships appear inauthentic.

Partnership Context: Adidas x Disney’s Zootopia 2

The Walt Disney Company will release Zootopia 2, the sequel to the Academy Award-winning animated film. The first film grossed over $1 billion globally and performed strongly in Latin America. The sequel’s themes of diversity, inclusivity, teamwork, and urban culture align closely with Adidas’s values.

Why Zootopia 2 and Adidas are a Strategic Fit: - Zootopia 2 attracts family audiences, Gen Z, and Millennials—overlapping with Adidas’s target consumers. - The film’s diverse, urban characters inspire sneaker and apparel designs. - Both brands rely on storytelling—Disney through film and Adidas through fashion and culture.

Case Study Precedents: - Adidas x Marvel: Superhero sneakers generated hype and resale demand. - Adidas x Star Wars: Apparel and footwear inspired by iconic characters strengthened Adidas’s pop culture identity. - Lesson: Entertainment tie-ins can boost sales and brand engagement when authenticity and exclusivity are prioritized.

Higher-Level Conceptual Goals

Goal 1: Build Cultural Relevance and Brand Engagement Leverage Zootopia 2 to deepen Adidas’s cultural connection with Argentine youth. Goal 2: Drive Product Sales Through Capsule Collection Launch a limited-edition Adidas x Zootopia 2 capsule collection, merging fandom and exclusivity to drive direct sales. Goal 3: Reinforce Sustainability and Inclusivity Narrative Highlight sustainable materials and inclusive representation to align with Adidas’s global commitments and Zootopia’s themes.

SMART Objectives and KPIs

Goal 1: Build Cultural Relevance and Brand Engagement Objective 1: Achieve a 30% increase in social media engagement over 8 weeks. • KPI 1: Instagram/TikTok engagement rate (+30%). • KPI 2: Hashtag usage (#AdidasZootopia) – 100,000 posts. • KPI 3: Activation of 5+ Argentine influencers. • KPI 4: Sentiment analysis shows 70% positive mentions. Objective 2: Generate 1 million AR filter interactions. • KPI 1: AR filter plays (1M). • KPI 2: Avg. session time (2+ minutes). • KPI 3: QR scans from theaters/stores (250,000). • KPI 4: Click-through rate to Adidas.com/AR (15%). Goal 2: Drive Product Sales Through Capsule Collection Objective 3: Sell 50,000 capsule units in Argentina. • KPI 1: Online sales (20,000). • KPI 2: Retail sales (30,000). • KPI 3: Sell-through rate (80% in 4 weeks). • KPI 4: Average order value (+10%). Objective 4: Increase lifestyle sneaker market share by 5% in 12 months. • KPI 1: Quarterly growth vs Nike/Puma (+5%). • KPI 2: Repeat purchases (+15%). • KPI 3: Brand recall (70% aided recall). • KPI 4: NPS improvement (+10). Goal 3: Reinforce Sustainability and Inclusivity Narrative Objective 5: Ensure 40% of capsule uses sustainable materials. • KPI 1: 40% of SKUs certified sustainable. • KPI 2: 80% of campaign ads highlight sustainability. • KPI 3: 20+ earned media mentions on sustainability. Objective 6: Showcase inclusivity in 100% of campaigns. • KPI 1: ≥50% diverse representation in ads. • KPI 2: Consumer survey: 70% agreement Adidas is inclusive. • KPI 3: Positive inclusivity sentiment ≥65%.

Tactical Plan

Channels: - Cinema ads with QR codes leading to AR filters. - TikTok dance challenges tied to Zootopia characters. - Influencer collaborations with Argentine creators. - In-store AR-enabled displays. - Adidas app gamification with rewards. Consumer Funnel: - Awareness: Cinema trailers, influencer seeding. - Interest: AR experiences, Adidas app. - Desire: Capsule collection teasers. - Action: Purchases online and in-store. - Loyalty: App rewards and exclusive follow-up drops. Budget Allocation: - Media (cinema/social/influencers): 40% - AR technology/app: 20% - Retail activations: 25% - PR & sustainability storytelling: 15%

Timeline (12 Weeks + 12 Months Follow-Up)

Weeks 1–2: Pre-launch teasers, influencer seeding, AR beta. Weeks 3–5: Movie premiere, capsule release, cinema QR. Weeks 6–8: Social activations, UGC contests. Weeks 9–12: Evaluate sales, repeat purchase incentives. Months 3–6: Loyalty rewards and sustainability campaigns. Months 6–12: Market share analysis, ROI tracking.

Part B – Testing KPI Integrity

Risks: - AR interactions inflated by bots. - Capsule sales boosted artificially through discounts. - Influencer engagement falsified by fake followers. - Sustainability overstated (greenwashing). Prevention: - Third-party verification of influencer data. - Focus on conversion metrics over vanity numbers. - Unique user validation for AR. - Verified certifications for eco-claims.

Part C – Reflection Questions

1. Influence on Marketing Planning: Linking KPIs to goals ensures campaigns tie back to business outcomes like revenue and equity. 2. Balancing Measurement vs Flexibility: High-priority KPIs are tracked, but execution teams retain freedom in tactics. 3. Personal/Professional Goals: - Academic: KPIs like GPA and assignment completion support MSM program success. - Professional: In grants/marketing, KPIs like reimbursement timeliness, compliance submissions, and event ROI ensure alignment with city priorities.

Visuals

Goals → Objectives → KPIs Pyramid

SWOT Analysis

AIDA Funnel

KPI Dashboard Mock-Up

Timeline