Initial Company Research - Yeezy Brand/Adidas

1. ASSIGNMENT 1 - INITIAL COMPANY RESEARCH
Student Name: Truston Ware
Date: 03/08/2020
COMPANY: (Include in-text citations)
Parent Company (or Holding Company) Name: Adidas Group
Brand/Division/Subsidiary Name: Yeezy
https://www.linkedin.com/pulse/confused-terms-subsidiary-affiliate-division-others-gary-kirshenbaum
Parent company structure: (begin with a brief history, mention its relationship to the brand you
selected, and note its current financial position below):
Adidas Group was founded in 1949 by Adolf Dassler in Herzogenaurach Germany. Adidas Group
engages indesign, distribution, and marketing of athletics and sporting lifestyleproducts. It is the
largest sportswear manufacturer in Europe, and the second largest in the world. The CEO of the
company is now Kasper Rosted. (Profile, 2020) Adidas Group is on their mission is to become the
best sports company in the world. The believe that through sport they have the power to change
lives. (History, n.d.)
Brand/Division/Subsidiary Detail (begin with a brief history, identify the CEO, and what part in
plays in the success of the parent company, i.e. percent of business):
Yeezy is a fashion collaboration between Adidas Group and designer Kanye West. Yeezy started
in 2013 and is now run by Kanye West and has been considered one of the most influential
sneaker brands in the world. While mostly known for its sneakers, the company also produces
shirts, jackets, track pants, socks, and women’s shoes. (Greenburg, 2020)
Parent company financial position (Refer to assignment attachment: “Financial Information
Source” for these five financial measures. Remember to include currency and year.)

2.  Year over Year (Stock price going up or down? Give stock price at beginning and end of the
most recent 5-year period): March 9,2015 (37.47) March 2,202 (136.25) (ADIDAS AG
(ADDYY) Stock Price, Quote, History & News, 2020)
 Compare stock performance to a market index (note the percentage of change in the
market index, and compare it to the percentage of change in the stock price for the same
period): Adidas Group stock compared to its competitor Nike is above the growth rate with
its changed price (-1.44%) Nike (-2.45) ADIDAS AG (ADDYY) Stock Price, Quote, History &
News, 2020)
 Net Income: 1,702,000 12/31/2018 (ADIDAS AG (ADDYY) Income Statement, 2020)
 Net Profit Margin: 7.76% 12/31/2018 (ADIDAS AG (ADDYY) Balance Sheet, 2020)
 Debt to Assets Ratio: 43.77% 12/31/2018 (ADIDAS AG (ADDYY) Income Statement, 2020)
BUSINESS LINES OF BRAND OR DIVISION (Include in-text citations)
Include a description of the Product or Service Line and the Product or Service example. Do not
assume your decision-making client knows what “Mass Effect” is. She may be an Accounting VP,
not a gamer. Emphasize benefits to potential and current customers.
Product/Service line A: Yeezy Boost Sneakers
Example of Product/Service line A: The Yeezy Boost features technology that was created to
bring together formerly contradictory benefits of soft and responsive cushioning. Introducing a
midsole made from thousands of expanded particles that work together to deliver an uptick
energy return in every stride. (Greenburg, 2020)
Product/Service line B: Yeezy Clothing
Example of Product/Service line B: Designer Kanye West leads Yeezy fashion brand with outfits
designed with monochrome grays, browns, blacks, and oranges are favorite hues and either
second skintight or so loose the body is swallowed completely by holey knits and shearlings.
(YEEZY: What to Know About Kanye West's Sneaker & Clothing Brand, 2020)
Product/Service line C: Yeezy Powerphase Calabasas
Example of Product/Service C: The Yeezy Powerphase features a soft leather upper, die cut EVA
midsole and a high abrasion rubber outsole. The quarter panel carries the Calabasas, California
logo marque. The Yeezy Powerphase is based on the original Adidas Powerphase fitness shoe
from 1987. (Woolf, 2017)
TARGET MARKET FOR BRAND OR DIVISION (Include in-text citations)
Complete these segmentations for each Example of the Product/Service you identified above.
Segment the Market according to what you learned in Introduction to Marketing. Be specific.
Avoid broad generalizations like “worldwide”, “everyone” and “all ages.”

3. Example of Product/Service line A: Yeezy Boost Sneakers
 Geographic: Worldwide (Chadwick, 2020)
 Demographic: Men & Women 16—30 (Profile, 2020)
 Psychographic: entrepreneurial mined, fear of missing out (Chadwick, 2020)
 Benefits Sought by consumer: make profits from purchases, stand out (Chadwick, 2020)
 Usage Rate of consumer: Heavy
Example of Product/Service line B: Yeezy Clothing
 Geographic: North America (Hanbury, 2018)
 Demographic: Men & Women 18-24 (Profile, 2020)
 Psychographic: fashion oriented, high purchasing power (Hanbury, 2018)
 Benefits Sought by consumer: Trendy
 Usage Rate of consumer: Average
Example of Product/Service line C: Yeezy PowerPhase Calabasas
 Geographic: North America (Woolf, 2017)
 Demographic: Men & Women 30-40 (Woolf, 2017)
 Psychographic: conservative mindset, relaxed (Woolf, 2017)
 Benefits Sought by consumer: comfort and nostalgia
 Usage Rate of consumer: Average
DIRECT COMPETITION FOR YOUR BRAND OR DIVISION (Include in-text citations)
Each Competitor’s Product/Service below should align with the Examples of your company’s
Product/Service identified above. For example, Competitor Company 1 Product/Service below
should be compared to Example of Product/Service line A above.
Name of Competitor Company 1: Nike (Nike, Inc. (NKE) Income Statement, 2020)
Competitor Company 1 Product/Service: Nike Off-White
Competes with your Product/Service A: Yeezy Boost Sneaker
Name of Competitor Company 2: The Carlyle Group (The Carlyle Group, n.d.)
Competitor Company 2 Product/Service: Supreme Streetwear
Competes with your Product/Service B: Yeezy Clothing
Name of Competitor Company 3: Groupe Artemis (Artemis Group, n.d.)
Competitor Company 3 Product/Service: Puma Icons

4. Competes with your Product/Service C: Yeezy Powerphase
Rank the 4 companies (each Competitor Company listed above and the Company you selected
for this Assignment). List the companies in order of success. Rank the most successful as #1.
Include the metric/numerical evidence used as the basis of the ranking. The metric/numerical
evidence can be annual revenue, annual profit, ticket sales, concert tour revenue, fan base size,
twitter followers, consumer reviews, age of company, size of company, etc. DO NOT USE current
stock price as a measure of success, since it does not offer the necessary context.
Ranking:
Company #1: Nike 39,117,000 Total Revenue (Nike, Inc. (NKE) Income Statement, 2020)
Company #2: Adidas 21,915,000 Total Revenue (ADIDAS AG (ADDYY) Income Statement, 2020)
Company #3: Puma 5,502,200 Total Revenue (PUMA SE (PUM.DE) Income Statement, 2020)
Company #4: Supreme 2,702,500 Total Revenue (Wolf, 2017)
FINDINGS: (Include in-text citations)
Research leads to findings. Summarize your findings here in two or three well-developed
paragraphs (a well-developed paragraph will contain 4-6 sentences). Describe your findings
(data) and note whether it was significant or not. Explain what the data you found implies, or
says, about your subject. Avoid overstating the importance (“XYZ is sure to dominate the
competition for years to come!”). Try to be objective in your description. Use both quantitative
and qualitative data from your research:
The Yeezy Brand has been successful thanks to the vision and leadership of the owner of the
brand Kanye West. He uses his platform and celebrity to connect with the millennials providing
his customers with a product that provides different levels of fulfillment. He uses a limited
releases strategy to build exclusivity and hype, making his products even more in demand. The
data that was found supports that since the adoption of this brand there has been substantial
growth within its industry.
Yeezy Brand separates itself from its competitors from its unique pattern textures, color
schemes, innovative designs, futuristic ideals. The Yeezy Brand growth is exponential in nature
as he continues to create freely and connect with his audience.
REFERENCES: (APA Format)
Listat least 3 references below using the APA long form guidelines for formatting. Eachreference
must also have a corresponding in-text citation above to show where it was used. It must be
formatted using the APA short form guidelines. Each of the five sections above (Company,
Business Lines, Target Market, Competition, Findings) must include at least one in-text citation.

5. ADIDAS AG (ADDYY) Stock Price, Quote, History & News. (2020, March 19). Retrieved March 15,
2020, from https://finance.yahoo.com
ADIDAS AG (ADDYY) Balance Sheet. (2020, March 19). Retrieved March 15, 2020, from
https://finance.yahoo.com
ADIDAS AG (ADDYY) Income Statement. (2020, March 19). Retrieved March 15, 2020, from
https://finance.yahoo.com
Artemis Group. (n.d.). Retrieved March 15, 2020, from https://www.artemis-
holding.com/main/en.html
Chadwick, S. (2020, March 11). How Kanye West and Adidas are conquering the millennial
market. Retrieved March 15, 2020, from http://theconversation.com/how-kanye-west-and-
adidas-are-conquering-the-millennial-market-66035
DeStefano, M. (2020, February 18). Virgil Abloh vs. Kanye West: Whose Sneakers Won NBA All-
Star Weekend? Retrieved March 15, 2020, from
https://www.complex.com/sneakers/2020/02/virgil-abloh-kanye-west-whose-sneakers-won-
nba-all-star-weekend
Greenburg, Z. O. M. (2020, February 28). Kanye's Second Coming: Inside The Billion-Dollar Yeezy
Empire. Retrieved March 15, 2020, from
https://www.forbes.com/sites/zackomalleygreenburg/2019/07/09/kanyes-second-coming-
inside-the-billion-dollar-yeezy-empire/#6ef010f45ec3
Frias, A. (n.d.). How Kanye And Adidas 'Yeezy-Hacked' The Business Model of Celebrity
Endorsements. Retrieved March 15, 2020, from https://cmo.adobe.com/articles/2016/1/how-
kanye-and-adidas-yeezyhacked-the-business-model-of-celebrity-endorsements.html#gs.0x0g54
Hanbury, M. (2018, April 26). Kanye West's secret to building a footwear empire to compete
with Nike. Retrieved March 15, 2020, from https://www.businessinsider.com/how-kanye-west-
made-yeezy-brand-a-success-2018-4
History. (n.d.). Retrieved March 15, 2020, from https://www.adidas-
group.com/en/group/history/What is Boost? (2020, February 18). Retrieved from
https://www.adidas.com/us/blog/373504
Nike, Inc. (NKE) Income Statement. (2020, March 19). Retrieved March 15, 2020, from
https://finance.yahoo.com/quote/nke/financials/
Profile. (n.d.). Retrieved March 19, 2020, from https://www.adidas-
group.com/en/group/profile/

6. PUMA SE (PUM.DE) Income Statement. (2020, March 19). Retrieved March 15, 2020, from
https://finance.yahoo.com/quote/PUM.DE/financials/
The Carlyle Group. (n.d.). Retrieved March 15, 2020, from https://www.carlyle.com/
Wolf, C. (2017, October 9). Supreme Is Now a Billion-Dollar Brand. Retrieved March 15, 2020,
from https://www.gq.com/story/supreme-billion-dollar-valuation
Woolf, J. (2017, August 9). Your Adidas Yeezy Powerphase Calabasas Buying Guide. Retrieved
March 15, 2020, from https://www.gq.com/story/adidas-yeezy-powerphase-calabasas-buying-
guide
YEEZY: What to Know About Kanye West's Sneaker & Clothing Brand. (2020, March 15).
Retrieved March 19, 2020, from https://www.highsnobiety.com/tag/yeezy/