A QUALITATIVE RESEARCH PROPOSAL ON

CUSTOMERSRECEPTIVENESS TOWARDS REEBOKS NEW MARKETING INITIATIVES, RETAIL FORMAT OF STORES AND REPOSITIONING AS A FITNESS BRAND

Submitted on: 10th December 2013 To

Prof. Bhavani Shankar

(In partial fulfilments of the requirements of the elective Qualitative Market Research, Term V, IIM Indore)

Submitted By : SONAKSHI BEHL 2012PGP366

TABLE OF CONTENTS

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INTRODUCTION RESEARCH OBJECTIVE KEY RESEARCH QUESTIONS RESEARCH DESIGN ASSUMPTIONS RESEARCH TECHNIQUES TO BE USED RESEARCH METHODOLOGY PROFILING OF THE RESPONDENTS DATA COLLECTION TOOLS FOCUS GROUP DISCUSSION TOPICS SEMI STRUCTURED INTERVIEW GUIDE DATA COLLECTION METHOD DATA ANALYSIS APPROACH EXPECTATIONS FROM THE STUDY REFERENCES

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1. INTRODUCTION
With many global sports labels entering India and existing ones reworking their strategies to present themselves as sports-lifestyle brands, Reebok is also aiming to revive its brand image in India. This objective is critical for the company due to 2 reasons the brands reputation was severely hit due to the alleged 870 crore fraud by its former MD and COO and India presents itself as the fastest growing market for sportswear in the world. The company has set the objective to reposition the brand from a mass sportswear brand to a premium, youth fitness label. To achieve this, it has designed an integrated four-pronged strategy: Introduce fit-hub concept stores: The sales people will be trained on nutrition, work out. Stores would feel like a gym as they focus on fitness, the sales people would advise customers about suitable products and fitness routines. Rope in new brand ambassadors: Youth icons from different walks of life such as sports, entertainment, music etc. who endorse fitness and healthy lifestyle would be associated with the brand. M S Dhoni, John Abraham and Nargis Fakri have been signed as brand ambassadors. Launch new marketing campaign(s) : Initiatives such as Live with Fire campaign that aim to spread the importance of fitness among youth are planned. The right channel, reach, theme are critical for success of such initiatives. Introduce new products : Running and Training are the two typical range of products Reebok sells, but given huge focus on holistic fitness, and especially for women, new products are planned to be introduced for routines such as yoga, cross-training, walking etc. 1.1 RESEARCH OBJECTIVES The purpose of this research study is to aid the company in designing a most effective marketing strategy to ensure the brand is hugely accepted among its target customers. This study aims to identify the various elements that must be included in the marketing initiatives of the sportswear company that appeal most to the customers. At a macroscopic view, the company wishes to know what aspects the consumers attach with their sportswear brand, what are the gaps in the customer expectations and what is available in the market, what are the role models they see for fitness, how do they associate fitness in their daily lives etc. An extensive and comprehensive qualitative research study among the target consumers themselves would better equip Reebok to design its new marketing strategy. At a microscopic view, this research intends to validate the effective of the marketing initiatives that Reebok plans to launch. There are 4 specific objectives: Whether the new fit-hub concept stores would attract customers to brand Reebok and understand from customers themselves what services, features, products, atmosphere they would like to see in such a store. What type of campaigns do people get attracted to. What are the elements people like in a sports/fitness campaign and what is the most suitable channel for launching these campaigns? Do celebrity endorsers provide more credibility and repute for a brand? If yes, which youth icons would people like to see for Reebok?
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Apart from running and training, what other routines do people wish to have sportswear products for such as Yoga, walking etc. Get consumers insights for ideas about new products especially for women.

1.2 KEY RESEARCH QUESTIONS Through this qualitative study, the consumer responses, attitudes, beliefs and aspirations are sought and used to answer the following key problems: Are the Indian customers really fitness conscious? Do they perceive fitness as a lifestyle? Do they really attach importance to their sportswear when it comes to fitness? What are current gaps the customers witness in what they desire from a sportswear brand and what is actually available? Do they like the concept of a fit-hub store where the companys store people advise them on nutrition, workouts and fitness products suitable for them? Do they attach any credibility to celebrities endorsing for a brand? If yes, which celebrities do they most associate/idolise as fitness youth icons? What are the different forms of fitness routines, exercises they prefer and the associated sports gear with them? Do they feel any product missing for any sport?

2. RESEARCH DESIGN
2.1 ASSUMPTIONS The following assumptions are made before effectuating this study: The companys repositioning as a fitness brand is primarily targeted towards upscale customers only Based on companys previous study, the alleged scam has not tarnished the companys image as people see it only as a business issue and Reebok still enjoys high brand equity Reebok is primarily a youth brand and it continues to keep its focus on youth Women sportswear segment hold most potential for growth and currently only 20% of the brands sales come from this segment

2.2 RESEARCH TECHNIQUES TO BE USED The qualitative research techniques suggested for undertaking this research are: Focus Group Discussion Semi-structured interview Focus group discussion is chosen to reach out to a larger audience and identify the general perceptions, beliefs and attitudes of the youth community in general. Since, the proposed marketing strategy of Reebok is built on aspects like Brand ambassador, marketing campaigns such as Live with Fire which are targeted at connecting with masses, an FGD would help bring out the various aspects that the target consumer feel at a group level, not individual level. The FGD could facilitate a useful discussion on the general aspects of do consumers actually associate credibility to celebrity endorsers, what are the apprehensions of the consumers as a group, which are the celebrity youth icons. For the fit-hub concept store, information could be gathered about typical sources from where the consumers rely on fitness related information. The FGD would help similar consumers to interact and help them share more thoughts.
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In this situation, since the company aims to reach out to as many people as possible, an FGD will be convenient as well as save time, effort and money. The FGD can also be recorded providing the option to explore data multiple times to discover finer nuances, aspects. The FGD would also bring out contrasting opinions in a more pronounced manner since it would be a homogenous group in terms of demographics, lifestyle but yet different in opinions, experiences and attitudes. These different opinions would help in better designing the marketing strategy. From the FGD audience, certain people would be identified and taken for a semi-structured interview where a more detailed information gathering would happen through means of openended questions, encouraging the interviewee to share his stories, experiences about fitness, fitness products, his routine, what are the gaps he sees in current range of sports products, what are his expectations of a fitness hub store-ambience, salespersons skills, location, etc. A semi-structured interview is more suitable to let themes which are unknown to the interviewer also emerge. It would give more freedom to the interview to speak of certain less obvious factors through narrating stories, anecdotes, apprehensions etc. It would also ensure that we get pure, verified information in case the participants provide socially desirable responses and group think during the FGD. In a one-on-one interview, the answers they provide would be more reliable.

3. RESEARCH METHODOLOGY

3.1 PROFILING OF THE RESPONDENTS The detailed profiling of the target respondents of this study is as follows: Demographic Profile Age group- 16 to 35 years Gender- equal representation of both males and females Location Metro and Tier-1 cities (Tier-2 cities and below are excluded since they are trying to reposition the brand as a premium, upscale brand. Moreover, the fit-hub concept retail stores not plan to be launched in Tier-2 cities) Economic status- Upper-Middle and Higher Class Family size- Single, independent youth or couples (This is chosen so as to ensure that they have an independent source of income, decision making and buying power) Profession- Representation from varied professions which youth typically take up (traditional like engineers, doctors, managers as well as non-traditional professionals like singers, artists, sportsmen etc. would be targeted. This would provide an interesting analysis of what professions typically are attracted to a fitness-based lifestyle or yearn for one) Income levels- medium to high; typically above 25k per month

Psychographic Profile Young enthusiasts who go to gym/exercise at least twice a week Style seekers; like to define their own unique identity Brand conscious Urban outlook
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Aware of benefits of staying fit Like to indulge in sports of different kinds Information seekers, try to be aware and inquisitive about what they use, what information they trust etc. Open to experimentation

3.2 DATA COLLECTION TOOLS 3.2.1 FOCUS GROUP DISCUSSION TOPICS On fitness : o What does fitness mean to you? o Do you see it as an integral part of their lifestyle? o Are you particular of the sportswear brand they use? IF yes, why? o Do you feel that your sportswear is crucial part of your fitness routine? On fit-hub store idea : o What are the typical sources from where you seek information on health, nutrition, work out etc? o Do you seek information from the salesperson before buying your sports gear? What type of information you seek? o Do you feel they are well equipped to make suggestions? o Would you trust the recommendation made by the sales person? If not, do you see any conflict of interest or other apprehensions? o Do you like the idea of a fit-hub store? If given an option, would you buy from there? o Apart from customised advice, what other services and features would you like to see in a fit-hub store? o What are the important factors that would enhance your adoption/rejection of this store such as location, prices of products, promotion schemes, Loyalty club etc.? On Celebrity endorsers : o Does your attraction to use a brand depend on the celebrity who endorses it? o Do you associate any credibility to these celebrity endorsers? o What celebrities do you consider as youth icons or your role models? On marketing campaigns : o What other activities/entertainment media do you most prefer like music concerts, marathons, etc.? o Do you like the online campaigns? o Which is your preferred channel for such campaigns- youtube, facebook, Music concerts, and marathons? o How likely are you to attend/ watch a fitness campaign? On new product ideas : o What are the typical sportswear, shoess, accessories etc. that you buy? o Are you satisfied with your current sportswear, shoes, accessories etc. ? o Apart from running and gyming, what other physical fitness routines do you indulge in? o What other features/functionalities would you like to see in your sports gear?

3.2.2 SEMI- STRUCTURED INTERVIEW GUIDE o What are the parameters on which you decide your sportswear brand? o Do you associate any sportswear brand as a fitness brand in India? Why?
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o What is your definition of a fitness brand? What all features/services/products should it provide? o Would you trust the recommendations made by a sales person in a fitness brand store? o Do you see any gaps in your expectations from a sportswear brand and what is currently available? o Do you know who the celebrity endorsers for Reebok are? Adidas? Nike?Puma? o You said you like walking. Do you feel satisfied would the shoes you have? Would you like to have exclusive walking shoes in the market? 3.3 DATA COLLECTION METHOD The focus group would comprise of 10-12 members. The respondents would be chosen typical through approaching them outside Gyms, Sports complexes, stadiums, fitness centres etc. and inviting them for an FGD. Considering a conversion rate of 20%, invitation proposal would be sent to about 500 people. About 6-8 FGDs would be conducted one daily over a week. An FGD expert, preferable related to the sportswear industry would co-ordinate the GD. Each GD would last typically 35-45 minutes where the participants would be sitting around a round table facing each other. All the FGS would be recorded for future reference. The expert would be unbiased and merely act as a facilitator. He/She would provide lead topics in the FGDs to give cues for discussion. Each FGD would try to cover all the themes mentioned in the FGD guide. The expert would make notes simultaneously about the points being discussed. The notes/transcripts would be neatly taken. They would be analysed too simultaneously to understand of any new, unknown theme emerge from the discussion to ensure the group is probed further on it. The expert would also make note of the facial expressions, body language and any physical characteristics observed while the respondents were answering. From each FGD, 2 candidates would be identified who are 1) Dissidents of the topic discussed or bring some contrasting arguments and 2) Strong supporter of the topic. They would be invited for a semi-structured interview where would be probed in great detail about the 4 research objectives. The interviewer would pose open ended questions/statements based on the broad guidelines in the interview guidelines. The recording would also be done. The interviewer would also make notes of what the person says. He would be asked to explain all the stories, anecdotes in detail and further probed on them. The interview would also record any change on the body language of the respondent to any particular questions.

4. DATA ANALYSIS APPROACH

The qualitative data would be analysed by following the below 5 steps and explanation is given for each step: 1. Compiling Post the FGD and interview, all the transcripts would be digitised, i.e. computer files would be made and backup taken for all the files. Print copies would be made to give to each researcher. Ideally, 2-3 researchers would be working on the same data to ensure cross-validation of their findings. 2. Disassembling - Reflective notes would be made from the data recorded to identify the emergent themes, factors and relationships. They would be grouped under the 4 headsfit-hub retail store, brand ambassador, new product ideas, marketing campaigns. Under each head, Some existing or self-designed labels would be assigned to different subgroups of data.

3. Reassembling In this stage, the data matrix would be prepared i.e. all the narratives, would be written down under each label. Labels would be in the columns and the 4 heads in the rows. 4. Interpreting The narratives would be re-read, analysed to interpret the data. Based on them, it would be identified what customers feel about each of the 4 initiatives Reebok plans and what suggestions do the customers recommend. 5. Concluding Recommendations would be provided based on the interpretations made. The findings of the researchers would be cross-validated and any contradicting findings would be rechecked. The suggestions would be made for the Reeboks marketing strategy dimensions- how they should design their retail stores, what sort of marketing campaigns they should launch and what channel should be used to promote fitness as a lifestyle, should they go for celebrity endorsers and new products that customers would like to see in the market.

5. EXPECTATIONS FROM THE STUDY

The proposed study follows a qualitative research approach, involving semi-structured interview and FGD as the crucial data collection techniques to collect information from customers about how they perceive a sportswear brand to be a fitness brand. Due to time, effort and cost constraints, the research is limited to around 80-90 respondents. Considering the limitations of the research, the expectations from the study are to provide a basic foundation for the company to lay down its marketing strategy that is customer-oriented which creates, communicates and delivers value to its customers most effectively about how Reebok is a brand that is part of your fitness and lifestyle. We expect to find out various marketing mix elements that play a crucial role in communication effectively to the target group of Reebok and how they should be designed. The study tries to explore what features/services should be included in those fit-hub stores, what sort of celebrity personalities should be associated with the brand, what new products can Reebok launch especially for women and what design of marketing campaigns would proive biggest mileage to the brand as a lifestyle, fitness brand.

6. REFERENCES
1. http://www.livemint.com/Industry/fYByXQZW6kiwuWowXFoUIK/Reebok-to-open-150300-storesin-India-in-three-years.html 2. http://www.thehindubusinessline.com/marketing/reebok-charts-new-retail-concept-marketinginitiatives-in-india/article4357322.ece 3. http://www.business-standard.com/article/companies/reebok-takes-fresh-guard-in-india113082100041_1.html 4. http://timesofindia.indiatimes.com/business/india-business/Reebok-India-fraud-deep-in-the-pastAdidas-India-MD/articleshow/25834217.cms 5. http://www.thehindubusinessline.com/companies/reebok-india-ropes-in-john-abraham-as-brandambassador/article4941074.ece 6. http://profit.ndtv.com/news/corporates/article-reebok-india-targets-40-per-cent-of-total-sales-fromwomen-customers-372311 7. http://www.thehindubusinessline.com/companies/reeboks-fit-hub-stores-openingtoday/article4800774.ece?ref=relatedNews 8. http://www.fashionunited.in/news/apparel/reebok-reworks-mass-brand-image-230820135926 9. http://www.fashionunited.in/news/apparel/rebook-plans-fresh-retail-strategy-to-bounce-back040220134906 10. http://www.fashionunited.in/news/apparel/reebok-repositions-itself-in-india-020420135199 7