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Reebok was founded in England in 1895 as JW Foster and Sons as a manufacturer of track shoes. It was renamed REEBOK in 1960.It is an American inspired Global brand that makes sports products so as to meet the aspirations of the customer who has an emotional value attached to it, the brand is committed to innovate and design products and marketing programs so as to be at par with the competitors. REEBOK'S VISION Fulfilling Potential Reebok is dedicated to providing each and every athlete - from professional athletes to recreational runners to kids on the playground - with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfil their true potential and reach heights they may have thought unreachable. REEBOK'S MISSION Always Challenge and Lead through Creativity At Reebok, we see the world a little differently and throughout our history have made our mark when we’ve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand’s unlimited creative potential. REEBOK'S PURPOSE To Empower Global Youth to Fulfil their Potential Commitment to Corporate Responsibility is an important legacy and hallmark of the Reebok brand. For two decades, Human Rights, through the Reebok Human Rights program, was the primary focus of this effort. Reebok has expanded on what had been built and created a Global Corporate Citizenship platform with a purpose for the brand that will help underprivileged, underserved youth around the world fulfil their potential and live healthy, active lives.
REEBOK IN INDIA
Reebok started its operation in INDIA in 1995 and it has dominated the India sports market with 51% market share far ahead of its competitors NIKE, PUMA etc. Reebok India has a PAN India presence with its branch offices in Mumbai, Kolkata, Bengaluru. It has always challenged and lean through creativity. It has introduced products in a wide range of sport shoe category from running, walking, aerobics, lifestyle, and newly introduced Runtone ready, Zigdynamic, Realflex etc. It celebrates individuality in sports and lifestyle. Reebok has introduced its internationally acclaimed fitness programs in India, conducted under the banner of Reebok Instructor Alliance, which is dedicated to fitness instructors, personal trainers and health club owners. Reebok has trained and certified more than 800 trainers till now. REEBOK Strategy: To continue with the heritage and take the business forward, Reebok has developed a roadmap which targets the women and kids sports, Revive classics, challenge Men’s sports, Develop a variety of products. Reebok has a Corporate Citizenship platform and encompasses four key areas: Philanthropy: The Reebok Foundation focuses its philanthropy in communities where Reebok’s offices are located. They have worked with 500 non-profit organizations as a part of their social responsibility. The Foundation strives to promote social and economic equality by funding non-profit organizations delivering programs aimed at inner-city youth and underserved groups to empower youth to fulfil their potential and programs that provide youth with the tools they need to lead healthy, happy and actives lives. Programming: They offer a wide range of programming designed to inspire and engage their employees including time off to volunteer, matching gift programs, and the REACH product donation program and through the Reebok4Real Human Rights Student Advocate Program. Partnerships: They seek partnerships which reflect their commitment to being responsible and making a difference. These collaborations include working with the athletes and assets and an active sponsorship of the Avon Walk for Breast Cancer. Sustainability: They take pride in their long standing efforts to set responsible workplace standards and to reduce their impact on the environment. As part of the Adidas Group, they continue to help ensure fair, safe and healthy factory conditions and believe that all workers involved in the production process deserve to be treated with dignity and respect. They also strive to reduce the environmental impacts through design process, day-to-day operations and in the supply chain.
REEBOK SUPPLY CHAIN
The majority of Reebok products are manufactured in approximately 724 independentlyowned and operated factories around the world. These factories employ more than half a million workers. Reebok adopted the supply chain transparency in 2002. Reebok stores are speciality stores. It is in vertical integration and has manufacturing units and retail outlets as well. SUPPLIER RELATIONSHIPS
There are three main types of commercial relationships: Direct relationships with contract factories They contract directly with some factories. These direct relationships account for 95% of footwear production by volume/spend. The Reebok country office in each location oversees this manufacturing. Sourcing through agents Some orders are placed through agents, who select the factories subject to their approval. In footwear manufacturing most orders are placed directly, but they also work with three agents. Subcontract factories Occasionally factories subcontract parts of an order to another factory. The Reebok entered India with 80:20 JV with Phoenix Overseas Ltd Phoenix is Asia’s largest footwear manufacturer with a capacity of 1000 pair per day Reebok started with 13 retail store in India. Company’s first concept store was launched in Delhi in 1999, named Planet Reebok. In Aug 2001 Reebok entered into retailing partnership with Bata India for sale of Reebok and Rockport footwear in Bata outlet. By 2001, Reebok with 65 exclusive stores and 700 shop-inshops, had 55000 sq. ft of exclusive retail space in 78 cities. By the end of 2005, the company was retailing from 182 franchise stores. It also retails from 2000 multi-brand retail outlets. The store count as of now is more than 600. Reebok reaches out to its target customers through its 500 exclusive Reebok Stores, 200 Shop in the shop outlets & 2500 dealer outlets. The company has plan to tap tier II and Tier III cities. Reebok is planning to add around 60 lifestyle stores also. It has the largest retail store in Hyderabad in India. Factories in INDIA Sant Rubber Corporation Sarup Tanneries Ltd. Jalandhar City India - Subcontract Jalandhar City India - Primary
Product Mix : Reebok offers a wide range of Footwear for Men. realflex etc. Reebok Verona. soccer. as well as to sporting goods stores. Price. Eg. and shoe stores. white etc to flashy pink. Performance line includes footwear designed for basketball. Dhoni Trainer. REEBOK and its 4P approach in the Indian Urban Market The marketing mix or the 4 Ps of Marketing are Product. Page 4 . Reebok’s pricing is designed to be competitive to the other shoe retailers. Partnership with Bata Shoes . Reebok sweep. football. Reebok for Men: Reebok offers a wide variety of footwear for the Men. This can control costs and influence product pricing. sizes and prices. Smooth fit select ride. Easytone go outside.for super premium shoes. Place and Promotion.Rs 900-2500 The prices for Sportshoe of men. fluorescent etc. 2 million with an annual income of 75000(and above). It believes in innovation and creativity to compete in the market. They have a varied price range depending upon the target consumers. Reebok for Women: Reebok offers a wide range of women footwear.for medium priced shoes. department stores. Reebok offers: Easytone flips. Reebok swing. The company distributes its products to athletic specialty stores and other retail shops. The variety ranges from sober colours like black. women and kids vary from the range of approximately Rs 2000-10000. tennis.com are comparable to those sold by their retail partners. running. Price: The prices of goods sold at Reebok. It constantly upgrades its shoes with new Comfort levels and offers in various designs. It offers Athletic. Casual and Court in a varied colour range where it suits the demand of all sections of the consumers. The pricing strategy makes use of vertical integration wherein they own participants at differing channel levels or take part in more than one channel level operations. and other sports. their income and preferences. runtone ready. Reebok cover point. About 70% Sales from product priced below Rs 2000:Their main target was population of 10 million with annual income of 45000(and above). brown. etc. colors. orange. fitness. so as not to take away sales and revenues from their traditional channel partners. Women and kids.
Because of the share of mind and heart it has managed to be a market leader with 51% market share. valentine’s day. Reebok Caters to two main types of consumers. the yellow pages. Television Media:. According to our survey we found out that availability of stores for reebok is not an issue and customers prefer to buy the sportshoes from a reliable store and also where they get the most updated variety of shoes. there are celebrity endorsements. It offers discounts. vouchers. alliance events. The various ad campaigns were started for every launch of their new products. Christmas etc to promote their brand and hence increase in sales.Print Media Advertising consists of newspapers and Magazines. TNT basketball games. billboards. coupons on their shoes. Time to time new commercials aired on TV. Media vehicles:-Reebok uses various media tools to promote its brand and create awareness about the products. print ads.Reebok had joined hands with various Television channels for its commercials. Their marketing scheme changes from time-to-time depending on the particular demand for the current campaign year. ESPN basketball games and ESPN’s Sports Center. online advertising. Apart from this. Reebok had enrolled various celebrities both from athletic and non-athletic background for its television commercials. Page 5 . road shows. billboards. transit posters. Place: Reebok shoes are carried by multi-brand stores and the exclusive Reebok stores across the globe. the Performance Conscious Consumer and the Fashion Conscious Consumer. television commercials. Print Media Advertising:.000 retail accounts in almost 200 countries around the world. print ads. and direct mail. It also includes outdoor bill boards. Reebok commercials aired during NBA Basketball games. They have campaigns to go rural also. Reebok uses television commercials. The showrooms are readily available in malls in the metropolitans and also in the tier 2 cities. Reebok sells its product to about 20. Promotion strategy: Reebok has used various promotional tools to spread awareness among its customers about the new sportshoe launches and also its utility and its edge over the other brands. Their discounts are seasonal and last for longer durations. Reebok had separated 15% of its sales for its advertising and promotion activities. sponsorship events. They also have strategized and made the various important days like independence day. sponsorship events and various advertising campaigns for its promotion.
S. Rural to Rural To reach the rural market reebok is utilizing the 4A strategy which includes : Availability: Reebok. In 2007. bullock-carts and even boats in the backwaters of Pondicherry. IN 2007. Affordability: Page 6 . providing the users more ways of getting what they want. Urban to Rural 2. To service remote village. ―Run Easy‖ campaign.com being international. the company depot supplies. Internet Advertising Reebok. but they do put their web site address at the bottom of all their television commercials and print advertisements. Reebok commercial of ―Your Move‖ ad campaign featured celebrities like Bipasha Basu and Mahindra Singh Dhoni. television commercials include Rahul Dravid. the marketing message will have to be localized and the choice of offline media will be determined on a country-to-country basis. has built a strong distribution system which helps its brands reach the interiors of the rural market. With Reebok. To ensure full loads.com sells the same products on their web site as they do in the stores. Reebok has used a hub and spoke distribution model to reach the rural villages which is the future growth driver. Reebok campaign In 2008.com has not done much to promote its web site. It is a two-way marketing process wherein the transactions can be: 1. promoting. pricing. twice a week. Bipasha Basu was also associated with the Toning shoe campaign. Indian cricket captain Rahul Dravid and wicket keeper M. Dhoni featured in the Run Easy television commercials. large distributors which who act as hubs. global campaign of ―Two People in One‖. stockiest use auto rickshaws. Reebok. distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives. Rural to Urban 3. REEBOK IN RURAL MARKET Rural marketing involves the process of developing.
the family is the key unit of identity. Page 7 .Reebok.. the rural consumer expressions differ from the urbans. With large parts of rural India inaccessible to conventional advertising media — only 41 % rural households have access to TV — building awareness is another challenge. However. It is a challenge for the company to spread awareness. The company tied up with NGOs and offered reasonably-priced policies in the nature of group covers. Reebok has addressed the affordability issue in the market by lowering its price and making it affordable. Acceptability: Rural market has a different set of consumers and product must be made available that suits their requirements. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. has launched a variant of its largest selling shoes brand. Awareness : The rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer. among the first MNC’s to realize the potential of India's rural market.
Electronic media promotion is still less in frequency. Increasing product range and design variety for competitors. Sporting goods. Competition offered by Chinese products. Specialty retailers. Unavailability of middle and low prices collection everywhere. Increasing disposable income of Indian consumer. Strong customer relationship management. IPL and Force India gaining popularity in India. WEAKNESSES Heavy dependency on footwear sales. Multiple Retail Channels. SWOT ANALYSIS STRENGTHS Consideration of comfort along with technological development Special collection for tier.I and tierII cities for being cost effective. THREATS Increasing competitor’s market share. Page 8 . Rely too much on retail stores to sell products. Licensees. For e. Icons of different fields as Brand Ambassadors. Department stores. Increasing awareness for different Technologies among the consumers.g. Better supplier base of competitors. OPPURTUNITIES Increasing kids market is yet another opportunity for Reebok Juniors. Company-owned stores.
Delhi and Sikkim Consumer expectations from the product will be different for different age groups. they used exclusive strategies according to the Indian consumer’s needs. especially in India.g.SEGMENTATION-TARGETING-POSITIONING STRATEGY OF REEBOK SEGMENTATION STRATEGY Reebok is the market leader in sports shoe industry in India. Segmentation forms the initial step of any marketing strategy where the firm divides the market into small market segments where the consumers have similar kind of needs and the firm can cover a substantial amount of market by a single strategy specific to the market segment. There are many bases for market segmentation. we will focus on the variables/bases reebok has used along with the reasons for using them – BASES/VARIABLES SEGMENTATION Geography FOR REASONS FOR USING THE VARIABLE Consumer needs for the attributes of the product will be different for different geographical locations. as consumers in India are very price-sensitive Reebok focuses mostly on the lifestyle of the consumer.uno status in the market via its efficient and effective innovative marketing strategies. E. After reebok entered Indian market. target and position itself. E. but it still has maintained its numero . most profitable and the most difficult variable to discover as it covers what the consumer wants or expects from the product Marketers need the information about the usage rate of a product in the market segment to judge the market growth and opportunities of the market segment. wants and demands to segment.g. product design and other attributes will be different for kids and an adult Consumer’s buying power also plays an important role in market segmentation. Although it had the first mover advantage . Demographic o Age o Gender o Income Psychographic Benefits sought Usage rate Page 9 . as the buying pattern depends on what the consumer will use the product for This is the most important.
e. kids in the age group 3-7 years and 7-12 years and introduced different products according to different income groups and provided special stores for these products.GRAPH 1: Factors for purchase of sports shoes for consumers TARGETING STRATEGY After segmenting the market. marketer’s next job is to select which markets to enter and which not to. Reebok has been very specific when it comes to targeting strategy. 45000 and above for the middle priced product and 2 million people with annual household income of Rs. reebok had a target of 10 million people with annual household income of Rs. betts and betts ( for low-income group). sports lovers( Type of specialty store for high. This process is called MARKET TARGETING.75000 and above for premium priced products. Page 10 . Reebok has used differentiated marketing along with micro marketing for targeting its market segments. E.income group). Reetone. age and gender.g. For Example. the specific strategies are shown below: According to Income group. where the firm selects the market on the basis of segment size and growth. Reebok segmented its market according to income group. Reebok further segmented the market into two segments i.g. According to gender:Reebok similarly entered into the women’s market and became the market leader there by introducing a special product line and store for women’s sports footwear. According to Age group:Reebok found the growth opportunities in the kids market segment and to effectively/efficiently tap that market potential. E. segment structural attractiveness and company objectives & resources.
S. reebok has signed different ambassadors for different sports.brand outlets. e. GRAPH 2: Price ranges for consumers to purchase sports shoes Page 11 . POSITIONING STRATEGY There are many positioning statements for Reebok like Premium quality brand at a reasonable price.g. M. Brand that fits me But Reebok wants to position itself as ―A FITNESS BRAND‖ and for achieving that in india it has continuously been informative and innovative in its strategies. Tiger woods for Golf and many more.Dhoni for cricket. For an effective communication to its consumers it has used various promotional strategies and has made it presence felt by continuously increasing its reach. For its positioning statement. Reebok has 220 Retail outlets and its products are also available in over 2000 multi.
‖ Reetone‖ . E.g. Understanding the Indian consumer.g . hence they developed all the shoes that had a broader forefoot to suit the Indian consumer. E. COMMENTS ON THE SEGMENTATION POSITIONING STRATEGY OF REEBOK –TARGETING- The biggest strategical advantage of Reebok over its competitors strategy has been: Its understanding of the consumer needs of the market segment. Provided premium quality at a reasonable price.g. product for women sports shoe market and opening new stores specifically for women’s sports-wear. E. reebok realized that a broader forefoot suits more to Indian consumer. its response for the changing needs and introduction of new products to the market and the efficient use of its supply chain to make it to the market as soon as possible. Reebok realized that the Indian consumer is highly price-sensitive and diverse. hence it provided a range of products under different price range. We can conclude that reebok has efficiently segmented the market and targeted the most proficient market and positioned itself as ―a premium brand at a reasonable price‖ Page 12 . The continuous market development along with the product development to complement it has also been one of the biggest strength of Reebok’s success in india.
GRAPH 3: Current positioning of different sports shoe brands in INDIA GRAPH 4: Intended positioning of different sports shoe brands in INDIA Page 13 .
For example. forcing retaliation or counterefforts. If the firm is currently in the dress shoe industry.PORTER’S FIVE FORCE MODEL – NEW ENTRANTS There are many barriers to entry preventing new entrants from capturing significant market share. Government policy is a low entry barrier. Reebok’s expansion of the women’s walking shoe. Manufacturers watch each other carefully and make appropriate countermoves to match a competitor’s move. Many athletic shoe customers are brand loyal and are reluctant to try a new athletic shoe. but the quest for global market share is eminent. inspired other firms to follow. they may use their existing connections to easily access athletic shoe distribution channels. it is extremely difficult to get shelf space at major shoe retailers. RIVALRY AMONGST EXISTING FIRMS - In the athletic shoe industry. Name recognition alone sells athletic shoes. because most firms have means to manufacture the demanded amount of athletic shoes. An extremely large capital investment is required for new firms to open athletic shoe factories and conduct research and design to create a popular athletic shoe. when manufacturing savings pass to the consumer. Product characteristics are related to market share. as all manufacturers in every industry are subject to factory safety laws. The rate of industry growth is stable. This increases global rivalry. Many shoe manufacturers (unorganized sector) reduce their costs by assembling athletic shoes abroad where labor is less expensive and tax laws are minimal. Page 14 . Today’s athletic shoes are highly technical. partially due to high entry barriers. This adds to the rivalry among existing firms. Capacity has minimal impact on rivalry. If they are a startup firm. and is entering the athletic shoe industry. corporations are mutually dependent.This ability to meet demand reduces market because most firms overproduce and drive down the selling price.Athletic shoe manufacturers greatly attempt to differentiate their products from all shoe manufacturers. Athletic shoe manufacturers relentlessly try to minimize fixed costs. The number of competitors is stable. Switching costs are very low for the athletic shoe industry. The larger the market share. A competitive move by one firm directly effects competitors. the greater advertising capabilities and hence increased name recognition. This increases rivalry.The aggressive marketing campaigns turn their products into household names making it arduous for new firms to compete.
where the manufacturing process adds to their value. The rivalry among existing firms is high where weak firms are easily acquired by fierce competitors. The overall impact from buyer’s bargaining power to profit potential is moderate. diversity among firms is small because every firm follows one another. the suppliers have limited bargaining power. A large population of athletic shoe consumers wear athletic shoes strictly because they are comfortable. Substitutes for athletic shoes are using other forms of shoes. For this reason. Given these reasons. Most buyers have a medium profit margin so price sensitivity of buyers is moderate. BARGAINING POWER OF SUPPLIERS - Athletic shoes are manufactured primarily from raw materials including rubber. Page 15 . This may have a high impact on profit potential.Low exit barriers and diversity among competitors has minimal impact on profit potential. price increases pass to the consumers. BARGAINING POWER OF BUYERS - Buyers have high switching costs in regards to opportunity cost. Additionally. then there are relatively few substitutes. If an athletic shoe retailer decided to drop one of the popular athletic shoe brands. leather and nylon. firms could switch to other shoe markets. If the athletic shoe is used for sports. These materials could be classified as commodities. If the athletic shoe industry becomes too unprofitable. or going barefoot(rural areas). and little impact on profit potential. Comfortable dress shoes or sandals are equally interchangeable with minimal switching costs. THREAT OF SUBSTITUTES - Athletic shoes are designed to improve comfort and personal safety during periods of increased movement. their sales would fall due to high consumer brand loyalty. the threat of substitute products is moderate and the impact to profit potential is moderate to high. In the athletic shoe industry.
Page 16 .. Excise and customs duty for sports shoes raw materials has decreased providing a relief ECONOMICAL As a multinational company Reebok helps countries to decrease unemployment by increasing every year the number of employees. ethyl vinyl. Finally Reebok protects and supports the rights of its employees by following all the current employment laws. Reebok also provide training sessions on employment standards and HR systems. washing stations. disinfectant units. silicones thermoplastic rubber. health and safety is important for the company. PEST ANALYSIS POLITICAL Reebok policy is to control and monitor hazardous substance to protect human health and environment one of those is to eliminate PVC making progress in finding substitutes like polyurethane. Establishing teams to manage and monitor SARS in Asia factory.
age.5 lakhs are users of Reebok . for the second edition held in 2009. such as the Royal Challengers Bangalore. the Reebok Foundation focuses its philanthropy in communities where Reebok’s offices are located. Kings XI Punjab kits. As a crucial component of Reebok’s Global Corporate Citizenship Platform. TECHNOLOGY R&D teams at Reebok create footwear. the company invites its employees to ―reach‖ beyond their own personal means to support a cause that is important to them and their family. Focus in people who like sports and athletes. Kolkata Knight Riders. The Foundation strives to promote social and economic equality by funding non-profit organizations delivering programs aimed at inner-city youth and underserved groups to empower youth to fulfill their potential – programs that provide youth with the tools they need to lead healthy. almost everybody can purchase Reebok products. Reebok sponsored kits for Indian Premier League teams. and lifestyle. Frequent users are those with an annual income of 5 lakhs or more . Rajasthan Royalsand Chennai Super Kings in the first edition of the league held in 2008.Labor salary is high in Germany and France but not so expensive in China (Suzhou). comfort and fit for the consumer. We seek partnerships which reflect our commitment to being responsible and making a difference. the Reebok Employee Charitable program. always in fashion with special design in any of product. Kolkata Knight Riders. religion. Through Reach. the brand is committed to empowering and encouraging Reebok employees to get involved and make a positive difference in their communities. However. Through modest financial Reach grants made available to Reebok’s full time employees for qualified non-profit organizations (restrictions apply). apparel and hardware with the primary focus on developing products that provide maximum performance. Usually men and women from urban sector with an annual income of 1. These collaborations include working with our athletes and assets and an active sponsorship of the Avon Walk for Breast Cancer. SOCIAL Reebok products declare in any raise. Chennai Super Kings. Teams are structured along the brand’s product category focus in addition to certain cross- Page 17 . the sponsorships includedRoyal Challengers Bangalore. happy and actives lives. This is the reason that most of factories located in Asia.
At brand Reebok. Activities are primarily located in Canton/Massachusetts. Belgium and Ireland and had also introduced YourReebok – an application to design your own Reeboks. For the 2008–09 season. USA to facilitate close collaboration with the respective product marketing teams. Only 14% of ordered footwear products were related to products introduced three or more years ago (2008: 14%). In July 2007.category groups such as the Reebok Advanced Concepts (RAC) team. It uses a specially designed trapeze-shaped piece of equipment called JUKARI FlySet™ for an effective total body workout through cardio. Reebok launched the GOAL Collection of football gear on the release of the Indian football movie Dhan Dhana Dhan Goal. Reebok launched its Lifestyle Footwear Collection in association with Daddy Yankee's new album. Reebok launched the EasyTone™ shoe featuring ―moving air‖ technology. In 2009. strength. Austria. a new development centre was opened in Vietnam close to the brand’s sourcing base in the middle of 2009. Reebok will build on the success of the EasyTone™ and further expand its offering in this emerging category see Reebok Strategy. In order to include production considerations early in the process. The need to constantly rebalance weight tones the wearer’s butt and leg muscles with every step. In 2009. Also. Page 18 . in 2009 Reebok launched JUKARI Fit to Fly™. As a result. The league adopted the jersey and now all teams sport the new style for both their home and away jerseys. RECENT DEVELOPMENTS . balance and core training. 64% of ordered footwear was launched in 2009 (2008: 66%). The proprietary technology was worked into the shoe without compromising the look. a new gym workout developed in cooperation with Cirque du Soleil. Reebok created the Reebok Edge 2 uniform system. Reebok launched several new product initiatives which had an important influence on the brand’s sales development. Balance pods located in the sole of the shoe create natural instability with each step. in particular in the Women’s Fitness category. Going forward. Netherlands. In January 2009 Reebok had extended the store to Germany. In December 2007. In April 2008 Reebok launched its online store in UK and France. we expect to sell several million pairs of toning products in 2010. for National Hockey League's players.
In October 2006 Reebok launches its first blog. Reebok announced Scarlett Johansson on its array of brand ambassadors. one of the company's largest rivals." It allegedly caused the lead poisoning death of a 4-year-old child who swallowed it. In November 2006. On March 23. The deal was completed in January 2006. a court case began between Liverpool FC. the National Basketball Association and Women's National Basketball Association switched from Reebok to Adidas branding on authentic and replica jerseys because that brand is better known outside North America and the UK.000 charm bracelets that contained extremely high levels of lead. announced that it would acquire Reebok for $3. a 'fashion-forward. Reebok claimed that Liverpool cost them £7m because of a delay in confirming the renewal of the Carlsberg sponsorship deal. In August 2005. In June 2007.[ Page 19 . the National Hockey League introduced a new uniform system league-wide. and Reebok. The bracelet has a heart pendant at the end that is printed with the name "Reebok. but some have commented that the Edge system's improved water repelling abilities leads to gloves and skates becoming saturated and uncomfortable during play. Johansson promotes the Scarlett 'Hearts' Rbk" collection. For the 2007/08 season. Adidas. Reebok recalled 300. "I am what I am" in Spanish. athleticinspired' footwear targeted at the Indian market. The new uniforms include new fabrics which are said to repel water and sweat more effectively. designed and manufactured by Reebok and called Reebok Edge.8 billion. In late 2006. which meant a delay in releasing the away shirt for 2005/06 (the last that Reebok would make for them)The kit that was eventually released was very similar to the away kit for 2003/04. Most players have avoided comment. Liverpool subsequently switched to Adidas for their official kit following Adidas' acquisition of Reebok. 2006. the winners of the 2005 UEFA Champions League while wearing Reebok's kit.
Nike and Market Share puma 9% liberty 3% khadim 4% bata 7% adidas 30% nike 15% reebok 32% CHART 2: Market share of different brands in Indian sports shoe market Page 20 . Adidas. Khadim. Liberty. Puma. Bata.COMPETIOR ANALYSIS MARKET SHARE OF DIFFERENT SPORTS SHOE The organised and unorganised sector break up is given below: Market Share Unorganised 63% Organised 37% CHART 1: Market share of organised and unorganised sectors in Indian Footwear market The major brands in sports shoe market in India are Reebok.
PRODUCT FEATURES Reebok (Price range INR 1040 to INR 5000) Women’s Sport and challenge in Men’s Sport Page 21 . PRODUCT CATEGORY: TABLE 1: The following table gives the breakup of different products for different brands classified on gender: Reebok Zig tech Footware RealFlex Footware Men Reebok Crossfit Basketball Running Adidas Basketball Football Golf Running Training Tennis Outdoor Other sports Nike Cricket Football Running Puma Football Running Sailing Golf Motorsport Rugby BodyTrain Social Toning footware Zig tech Footware RealFlex Women Footware Reebock Crossfit Fluid trainer Adizero TR W No categorisation Football Running Golf Motorsport Social The strength or unique feature of each brand is highlighted in above table.
Reebok introduced its second innovative technology with ZigTech. a lower-profile version of the original ZigTech. Strength: leveraging leading position in toning In 2009. The ZigTech concept will be supported by an integrated global marketing campaign ―ReeZig – More Energy‖ in 2011. Reebok launched the EasyTone footwear collection that is designed to help tone key leg muscles. Reebok’s ZigTech footwear utilises a unique ―Zig-Zag‖ geometry that delivers energy transfer back to a runner’s running stride. Flexibility: introducing RealFlex In 2011. Conditioning: successful market launch of ZigTech In spring 2010. capturing this young and influential consumer in a highly relevant way. Reebok has developed three key product concepts: Toning (launched in 2009) ZigTech (launched in 2010) RealFlex (to be launched in 2011) These three product concepts are designed and will be commercialised across genders. The brand also expanded its toning reach with a new offering of lifestyle. This campaign features inspirational EasyTone fans from around the world who fit fitness into their busy lives with EasyTone footwear and apparel. supporting flexibility and natural movement. The brand also extended ZigTech into Kids. Reebok will introduce its third pillar. In spring 2011. an innovative running and training shoe concept for conditioning activities. athletic and dress shoe models to capture additional consumer segments and distribution channels. RealFlex is engineered with 76 independent ―sensors‖ that help promote the natural movement of your feet. Reebok will evolve the toning platform for 2011 with the launch of the ―Tone while you live‖ campaign. the next category-specific evolution of ZigTech for men and women will follow with the launch of ZigTech Nano. EasyTone is based on Reebok’s proprietary ―Moving Air‖ technology. forcing the muscles to adapt.With a holistic approach to fitness. It involves two balance pods under the heel and forefoot of the shoes that create natural instability with every step. Reebok’s strategy is to expand the ZigTech platform across categories in order to build ownership with this iconic geometric shape. in 2010 Reebok expanded its footwear offering into running with RunTone and training with TrainTone. Reebok provides consumers with proprietary technologies based on the three key elements of total fitness: strength. And just like ZigTech Page 22 . Through a focused approach to these elements. ZigTech not only created outstanding buzz among consumers. Building on the success of EasyTone. RealFlex provides Reebok with a unique point of view in the fast-growing lightweight running and training category. Its unique sole propels the runner forward and is designed to help reduce muscle fatigue in shins. These sensors are positioned to flex and move throughout the stride while providing protection under the feet. conditioning and flexibility.
functional consumer proposition. Unavailability of middle and low prices collection everywhere. Sporting goods. In 2010. Icons of different fields as Brand Ambassadors. STRENGTHS Consideration of comfort along with technological development Special collection for tier. The key product concept in 2011 is Reebok Lite. Specialty retailers . Reebok also demonstrates its commitment to this fitness and training area through the creation of innovative workout experiences such as its partnership with Cirque du Soleil and the roll-out of the Jukari training programme. Increasing awareness for different THREATS Page 23 Increasing competitor’s market share. which has laid the groundwork for Reebok Classics to re-emerge in 2011. Classics targets consumers who want to be ―fit for the street‖ and value trend-right products that fit their mobile lifestyle. the foundation and strategic direction of the Classics business was further defined. Revive Classics Reebok Classics leverages the fitness attitude and roots of the brand into the lifestyle segment.g. Licensees. This new product collection will be highlighted through an integrated global marketing campaign.I and tierII cities for being cost effective.and Toning. technical details and a distinctive aesthetic appeal. Multiple Retail Channels. WEAKNESSES Heavy dependency on footwear sales. The result is a range of products that provide supreme comfort. trend-right materials and Reebok’s proprietary technologies. Electronic media promotion is still less in frequency. Reebok will expand its fitness footprint around the world through an innovative. RealFlex represents a distinctive visual DNA as well as a highly relevant. In 2011. Bad working practices in their manufacturing units. Rely too much on retail stores to sell products. For e. OPPURTUNITIES Increasing kids market is yet another opportunity for Reebok Juniors. Company-owned stores . back to basics grassroots movement. Strong customer relationship management. Competition offered by Chinese . Department stores . This collection modernises Reebok’s Classics offering by combining lightweight.
enter strength and flexibility data. Increasing product range and design variety for competitors. Basketball Crazylite: This basketball shoe was designed from the barefoot up and the results were astonishing. miCoach syncs so one can check the stats.8 ounces of pure lightweight performance.more comfortable stride. IPL and Force India gaining popularity in India. Page 24 . Increasing disposable income of Indian consumer. track progress and get coaching feedback for every workout. Running Adizero feather: Lightest ever 190 g.technologies among the consumers. miCoach Mobile puts instant feedback and workout analysis. On the go. ADIDAS (Price range INR 685 to INR 5999) Micoach Create a plan: From training to tennis. MiCoach keeps the cardio workouts in check with real-time audible feedback. Start Training: MiCoach workouts are based on four color zones personalized ones cardio or strength and flex plan. miCoach has a custom plan get to the top of your game whatever the sport. 9. Supernova: Streamlined for a more powerful. products. these Adidas Supernova. Better supplier base of competitors. Track your progress: Online. Sequence 4 shoes step you into an anatomical GEOFIT construction and a breathable air mesh upper.
These running shoes also protect your joints with impact-absorbent adiPRENE cushioning and TORSION midfoot support. These trail running shoes are also miCoach compatible. EVA cushioning and TPU heel support STRENGTHS In many events is the biggest sponsor Brand recognition and reputation Strong control over its own distribution channel No bad reputation like child labor or environment pollution Diversity and variety in products offered on the web WEAKNESSES High prices in some products E-commerce is limited to USA The direct sale to consumers is creating conflicts with its own resellers Online customer service not "helpful" or easy to find. Women footware: These lightweight. Response: When the run off the beaten path. Plus they support your stride with a TORSION midfoot and impact-absorbent adiPRENE cushioning. Page 25 . impact-absorbent adiPRENE cushioning and TORSION midfoot support. these adidas RESPONSE Trail 18 shoes strengthen the stride with their responsive FORMOTION design. slim and comfortable adidas training shoes are specially designed for a woman's foot. The adiZero Training shoes feature a breathable mesh upper. these adiSTAR Salvation 3 adidas running shoes feature a unique FORMOTION design that adapts to the ground every step of the way. Adistar: For smooth landings.
Can grow in new and emerging Markets. retire or become injured could adversely affect Nike image Heavy dependency on athletic footwear sales Effective Research and Development Effective promotional activities OPPORTUNITIES Nike must focus on Growing ecommerce. THREATS Nike’s strong reputation in the sports shoe industry.OPPORTUNITIES Increased female participation in athletics. it will have positive effect. Increase in the Price of Raw materials Continuing challenges in import/export duties. NIKE (Price range INR 1775 to INR 12000) STRENGTHS Lean organization Brand Name Leads international business operations through acquisitions and re-branding Financially Strong WEAKNESSES Unwilling to disclose to disclose partnering companies Use of Contract manufacturers makes it difficult to control quality of production and create financial problems due to foreign currency exchange rate fluctuations Use of sports stars who fail to perform. Possibility of outsourcing the web development and e-commerce to a third party developer. Women demand for athletic footwear THREATS Negative publicity feedback Strong Competitors Piracy of footwear and apparel designs could decrease sales and adversely impact image. Collaborate with other online retailers to offer Adidas products. Page 26 .
sports and fitness was predominantly a male activity.and who could be attracted with Reebok’s product offerings. there was always the realisation that there is a female consumer who lives an active lifestyle .who walks regularly. It worked out Page 27 . or even works out -. Political unrest in the supplier countries Perpetual Map MARKETING STRATEGY Reebok: In the initial years when Reebok was launched.is increasing significantly. Reebok adapted the format of all its stores and introduced a women's collection and created a small corner with 20-30 SKUs in apparel and shoes. the product offering was dominantly for the male consumer. However. At the time. Using eco-friendly projects Customer use of company’s products change from athletic purpose to a fashion item.
The integration of Reebok has given the Group additional insights to the best-in-class techniques and processes across its entire organization Nike: Nike. It is a global organization that is socially and environmentally responsible. However. the Group’s goal is to lead the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. Nike decided to strengthen its management. the largest seller of athletic footwear and athletic apparel in the world with subsidiaries in over 200 countries across the world. backed by innovative advertisements. successful associations (college teams) and event sponsorships. and increasing competition. Since then. Dedicated to consistently deliver outstanding financial results. Marketing to women took the grass-root path. Nike has been achieving rapid growth by using aggressive marketing tactics. as a part of the Adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a obsession for sports and a sporting lifestyle. feel and image of its products. A consumer-driven company that does everything strengthen and develop its brands to maximize the Group’s performance. gaining a broader presence in key markets.priced shoes. Page 28 . creative and financially rewarding for our employees and shareholders. Reebok has certified 700 trainers in India. celebrity endorsements. and streamline supply chain management. look. has attempted to keep itself on the cutting edge of technology. Nike still faces many challenges in the wake of changing fashion trends. overhaul its information systems. Adidas: The Adidas India Marketing franchise. the falling sale of its higher. When it faced a crisis in the late 1990s.well and soon women's business was 15 per cent of their main business. The sportswear business organizational structures match and exceed consumer expectations to provide them with the highest value. Nike has been launching new technically advanced shoe models from time to time. The acquisition of Reebok extended its global position. The sports goods franchise is a consumer focused organisation and therefore wishes to continuously improve the quality. The combined strengths aim to widen the profile we have with consumers and enhance brand profitability by execution of a welldefined strategy. The Group is committed to continuously strengthening its brands and products to improve the competitive position. product categories and consumer segments. The Group is an innovation and design leader who seeks to help athletes of all skill levels achieve peak performance with every product it brings to market.
The competitive advantage that Reebok relishes the most is its supply chain. Himachal Pradesh. 100-130 Cr J&K : Around Rs. Uttaranchal. and capitalises on increasing women sports shoe market which is not that significant for its competitors. as is the case with its competitors. GREY MARKET Grey market share is about 63% of the Indian sports shoe market till 2010 and expected to grow by 4-5% by 2015. Reebok focus on the middle income buyer also. Page 29 . Punjab.15000 Cr Indian footwear market with CAGR of 8. The product differentiation of Reebok is based on technology rather than on sports. Indian sports shoe market is 7% of the Rs. 60 Cr Uttar Pradesh : Around 600 Cr Northern region of India(J&K.20000 Cr by 2015. Delhi. Reebok has started to tap the potential kids sportswear market. and hence enjoys maximum customer satisfaction. Some of the data of the grey sports shoe market in some of the regions is provided below: Delhi : Rs.8% and expected to reach by Rs.40 % of grey market COMMENTS ON COMPETITIVE ADVANTAGE OF REEBOK Quality and price both play a very important role in the customer buying process in India and as it is visible from the perpetual model that Reebok has a clear advantage in both these attributes. which is a burgeoning class in India. Uttar Pradesh) : 30. Haryana. Research and development department and its understanding of customer needs. 250-300 Cr Chandigarh : Rs.
Promotions through internet and other media channels should increase. Indian consumer’s purchasing power is increasing. purchase coupons etc. Tie-up with different sporting and fashion events to promote its new products. Capture the highly growing rural marketing with low. Page 30 . Increase the product-line for kids sportswear market in India.RECOMMENDATIONS: Tap the high-income group by bringing high priced shoe. on regular bases to retain customer loyalty.and medium. Lucrative offers like sale on product.priced products as the rural market purchasing power is increasing along with strengthening its supply chain. so the high-priced shoe will be a big contributor to the revenue.