Project Report On

Comprehensive Marketing Analysis

Of

Submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Business Administration (2007-2010)

Submitted to: Dr. Rakesh Gupta Project Guide

Submitted by: Anshul Arora Roll No: 0751921707

LALITA DEVI INSTITUTE OF MANAGEMENT & SCIENCES (Aff. to Guru Gobind Singh Indraprastha University)
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ACKNOWLEDGEMENT
Nobody is born perfect in himself, it is some timely guidance, proper teachings & blessings by the well wishers & seniors around us, who give perfection & skills to make ourselves prepared for a walk on the path of success. Through these lines I would like to extend my heartiest gratitude for timely guidance & valuable information, which has contributed a lot towards successful completion of my project. I deem it a privilege to extend my special thanks to Rakesh Gupta , my Project Guide for his whole-hearted support and valuable guidance, which led to successful completion of my project. I am also thankful to my colleagues and friends with whom I discussed the basic framework of this project report and got several good ideas. Hereby, I acknowledge the support of all.

Anshul Arora BBA- 6th Semester

INDEX
Page No. Reebok- History Product Line, Product & Products Image Organisational Structure & Organisational Structure Advertising & Marketing Swot Analysis Buying & Selling Policy Promotion Training, Recruitment, Remuneration & Supervision Selling Concept & Selling Methods Layout & Display Price Policy & Price Range Sales Accounts, Cash Sales & Credit Sales Achievements Review 5 17 22 26 34 39 42 46 51 55 58 61 63 67

Name of The Organization

DATE OF ESTABLISHMENT AND HISTORY OF THE ORGANISATION

The entire population of the world wears shoes. Once the concept of wearing a pair of shoes was to protect the feet, but as time passed, it became style. A lifestyle is the persons pattern of living in the world as expressed in activities, interests and opinions. Lifestyle portrays the whole person, interaction with his or her environment. Marketers have been searching for relationships between their products and lifestyle groups. In an era of style, Reebok has created has created a niche for itself among the young and old generation. It is a multinational company that has become a part of peoples lifestyle around the world. In the case of the Indian population, it has much interaction among the young generation. Reebok, the leader of sports accessories in the world is a well-known name in every household. It is one of the first companies in the world to make shoes for special purposes for

example

specially

designed

shoes

for

football,

running,

basketball, cricket and tennis etc. All the Reebok outlets in India and abroad are franchisees and Reebok itself has a major role in their successful running. Apart from these showrooms, it also supplies to retailers who sell various other brands but it mainly concentrates in franchisee showrooms. Date of Establishment Earlier there are a retain outlet in South Extension Part II but this retail outlet has been recently opened in South Extension Part I on 14th December 2001. Normally the history of an organization is very important aspect in the success of any retail outlet. Since Reebok has its own brand image, which the company has built over the years. This particular outlet has been able to attract a number of customers through their attractive display and huge sales promotional activities undertaken by Reebok itself.

Address and Location The Reebok retail outlet, which I have chosen, is accessible to the consumers who are living in South Delhi. The showroom is situated adjacent to the Ring Road, at South Extension, Part I. It is a huge showroom that keeps a wide range of shoes, and other products. A number of people can be housed at the same time on the floor of this Reebok showroom. Address Shop No. 5, Commercial Complex, South Extension, Part-I New Delhi. The Franchisers of this showroom are JEESE ENTERPRISES Under agent Teksons

TYPES OF RETAILERS This Reebok showroom is a speciality store and is a franchisee organization. The products are basically shoes, apparels, sports equipment, health products etc. The horizon of products is very limited, that is, there are only a few types of product. According to the need of customers, specialty stores are further divided into single-line stores, limited-line stores and super-speciality stores. In todays world, people love to go and shop in a speciality store. In such a store, customers find their own goods, although they can ask for assistance. Customers complete their transactions by paying the cashier for the item. The sales executives are kept to assists the customers, who need assistance and information related to the products. Specialty Store: Narrow product line with a deep assortment, such as apparel stores, sporting goods stores, furniture stores, florists, and bookstores. A clothing store would be a single line store, an mens clothing store would be a limited line store, and a mens custom shirt store would be super specialty store. Examples: Athletes Foot, Tall Men, The limited, and the body Shop.
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Franchise Organization: Contractual association between a franchiser (manufacturer, wholesalers, service organization) and franchisees (independent businesspeople who buy the right to own and operate one or more units in the franchise system). Franchising has been prominent in dozens of product and service areas. Examples: McDonalds, Subway, Pizza Hut, Jiffy Lube, Meindke Muffers, 7- eleven. The other various types of retailers around the world are: Department Store: Several product linestypically clothing, home furnishing, and household goodswith each line

operated as a separate department managed by specialist buyers or merchandisers. Examples: Sears, JCPenney,

Nordstrom, Bloomingdales Supermarket: Relatively large, lowcost, lowmargin, high volume, self-service operation designed to serve total needs for food, laundry, and household maintenance products. Super markets earn an operating profit of only about 1 per cent on sales and 10 per cent on net worth. Examples: Kroger, Safeway, Jewel.

Convenience store: Relatively small store located near residential area, open long hours seven days a week, and carrying a limited line of high turnover convenience products at slightly higher prices. Many have added takeout sandwiches, coffee, and pastries. Examples: 7-Eleven, Circle K. Discount Store: Standard merchandise sold at lower prices with lower margins and higher volumes. True discount stores regularly sell merchandise at lower prices and offer mostly national brands. Discount retailing has moved into specialty merchandise stores, such as discount sporting goods stores, electronics stores, and bookstores. Examples: All- purpose: Wal-Mart, Kmart, Specialty: Circuit City, crown Bookstores. Off-price Retailer: Merchandise bought at less than regular wholesale prices and sole less than retail: often leftover goods, overruns, and irregulars obtained at reduced prices from manufacturers or other retailers. Factory outlets are owned and operated by manufacturers and normally carry the manufacturers surplus, discontinued or irregular goods. Examples: Mikasa (dinnerware), Dexter

(shoes), Ralph Lauren ( upscale apparel).

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Independent

off-price

retailers

are

owned

and

run

by

entrepreneurs or by divisions of larger retail corporations. Examples: Filenes Basement, loehmanns T.J.Maxx. Superstore: Averages 35,000 square feet of selling

space traditionally aimed at meeting consumers total needs for routinely purchased food and nonfood items. They usually offer services such as laundry, dry cleaning, shoe repairs, check cashing, and bill paying. A new group called category killers carry a deep assortment in a particular category and a knowledgeable staff. Examples: Borders books and Music, Petsmart, Staples, Home Depot, IKEA, and the Super Bazar in India. Combination stores are a diversification of the

supermarket store into the growing drug-and-prescription field. Combination food and drug stores average 55,000 square feet of selling space. Examples: Jewel and Osco stores. Corporate Chain store: Two or more outlets commonly owned and controlled, and employing similar central lines of buying and

merchandising

selling

merchandise.

Strongest in department stores, variety stores, food stores, drugstores, shoe stores and womens clothing stores. Their size
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allows them to buy in large quantities at lower prices, and they can afford to hire corporate specialists to deal with pricing, promotion, merchandising, inventory control, and sales

forecasting. Examples: Tower Records, Fayva, Pottery Barn Retailer Cooperative: independent retailers who set up a central buying organization and conduct joint promotion efforts. Examples: Associated Grocers, ACE Hardware. Consumer Cooperative: A retail firm owned by its customers. In consumer coops residents contribute money to open their own store, vote on its policies, elect a group to manage it, and receive patronage dividends. TYPES OF CUSTOMERS A customer may be defined as a different set of persons who may be differentiated according to their age groups, tastes, choices and preferences, and buying power. There may be different sets of customers. According to their age groups the choices, tastes and preferences may differ in their approach. For example, when we talk about a teenage girl and a cricketer then their choices will be different in approach

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depending upon their age group and the way they are living their lives. Humans are customers to the Industries. In the case of Reebok a person who is willing to buy or wear a pair of Reebok shoes is a customer. Customers are increasingly expecting higher quality and service and also some customization. They perceive fewer real product differences and show less brand loyalty. They can obtain extensive product information from the Internet and other sources, permitting them to shop more intelligently. They are showing greater price sensitivity in their search for value. But in spite of this the Reebok outlet at South Extension Part-1 has major customer penetration, says Mr. Navneet, the manager of the outlet. This means the percentage of

customers who buy from the outlet again and again is very high. Thus, they are loyal to the company and the product. A business can be defined in terms of three dimensions: customer groups, customer needs, and technology. Consider, for example, a small company that defines its business as designing incandescent lighting systems for television studios.
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Its customer group is television studios; the customer need is lighting; and the technology is incandescent lighting. The company might want to expand into additional business. For example, it could make lighting for other customer groups, such as homes, factories, and offices. Or it could supply other services needed by television studios, such as heating, ventilation, or air conditioning. Or it could design other lighting technologies for television studios, such as infrared or

ultraviolet lighting. Similarly, once the customers of Reebok were

sportspersons and athletes. It used to manufacture shoes especially for this customer group. That is why, during the eighties, Reebok launched a variety of sports shoes, which gained a huge amount of popularity around the world. But as time passed the company shifted its customers from sports specific to young teenagers, and adults. These people were influenced by the new fashion era and Reebok started to cater to these people also. Thus, Reebok shifted from the specialist sports shoe market to the fashion-oriented market. Moreover, apart from shoes it extended its product range by

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adding products like apparels, sports equipment and other health products. This particular outlet has been successful in capturing the market of adults and the fashion conscious teens. In brief, the customers of this Reebok outlet are of the effluent class. The outlet has been successful in collecting a considerable amount of knowledge over the time about their market, brand popularity and customers. The outlet passes this information to the company. The company intern accumulates various

manufacturing processes that are important to fulfill their customers needs and desires.

NO. OF EMPLOYEES Employees have an important value in any form of business, as they are the ones who make a valuable contribution to upgrade the sales turnover for any organization. It is hard to believe that an American Company, which has a number of outlets around the world, has only six employees in this outlet who are able to manage everything efficiently. Among these six employees one is the manager 15

Mr. Navneet, and three are sales representatives - Mr. Dinesh, Mr. Sanjeev and Mr. Vishal. There is also one cashier and one security guard. The sales representatives are of middle age, which handle the customer service for the consumers. One

more person has been recently recruited to increase efficiency in sales.

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Product Line, Product & Products image

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PRODUCT LINE, PRODUCT AND PRODUCTS IMAGE

Reebok is known for its product. As Reeboks products fall under specialty goods, it is important to know about specialty goods. Specialty goods are goods with unique characteristics or brand identification for which a sufficient number of buyers is willing to make a special purchasing effort. Examples include cars, stereo components, photographic equipment, and mens suits. A Mercedes is a specialty good because interested buyers will travel far to buy one. Specialty goods do not involve making comparisons; buyers invest time only to reach dealers carrying the wanted products. Dealers do not need convenient locations; however, they must let prospective buyers know their locations.

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The product line of a Reebok retail outlet generally consists of sports accessories. The product line is divided into four sections: 1) 2) 3) 4) Shoes Apparels Sports equipment Exercising / health products

1)

Shoes Reeboks specialty is their shoes. They vary from shoes for every day use to professional footwear. The outlet has around 4000 different types of shoes. The outlet also sells floaters and sandals which have gained a tremendous amount of popularity among the youth.

2)

Apparels These include T-Shirts & shirts, track suits, shorts, socks & caps which a quiet popular among teenagers,

sportsmen and professionals. 3) Sports Equipment Sport equipment includes like Cricket bats & balls, Tennis balls and gymnastic equipment.
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4)

Exercising / Health Products It also sells exercising / health products like dumbles & weights, skipping ropes etc.

Recently Reebok has launched its Iverson Collection which consists of Tees, Singlets and 13 play off Basket Ball shoes. PRODUCT IMAGE Buyers respond differently to different products. Hence every company tries to develop distinctive images for their brand. Apart from Reebok many other sport companies like Nike, have succeeded in convincing millions of young

consumers that a shoe is not simply a shoe, it is an attitude. Identity and image needs to be distinguished. Identity comprises the ways that a company aims to identify or position itself or its product. Image is the way the public perceives the company or its products. Image is affected by many factors beyond the companys control. The fact that image can have a life of its own is exemplified by Nikes problems in maintaining its appeal to the fickle youth market.

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Now the market is following perfect competition. There are numerous buyers and sellers with no single firm able to influence market prices. It is assumed that products are identical in every respect and that the firm accepts the price set by the market. Hence, the company likes to differentiate its product by using latest designs with comfort. The Reebok symbol represents Vector an animal similar to the Cheetah which runs very fast.

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Organizational Structure or Organizational Pattern

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ORGANIZATIONAL STRUCTURE OR ORGANISATIONAL PATTERN

To achieve the targets of the company, it is very important to have a healthy organizational structure with direct

responsibilities and powers to the various departmental hearts. It is now days, very difficult to handle the various departments centrally, thus the practice has become to have various departmental heads having their functions defined. As far as organizational structure of a Reebok showroom is concerned, it is very small. In the top level, there is one

manager whose role is to manage everything, right from sales operations to handling grievances of customers and

employees. The manager himself handled both the selling and purchasing departments. He exercises strategic supervision and discharges his fiduciary responsibilities towards the customers. The middle level management consists of the sales representatives and the cashier. The two sales representative
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of the company look after the necessities of the customers. As far as the customers of Delhi (who buy from them) are concerned, are educated and do not need too much assistance. Hence, the sales executives dont face major problems in selling the products. The lowest level consists of the security. There is only one security guard in the showroom. The manager says, We do not need more guards as there is no threat of any type within the showroom. This is the grassroot level of organizational structure in case of this Reebok showroom.

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ORGANISATION STRUCTURE

MANAGER (Top level management)

SALES REPRESENTATIVES (Middle Level Management)

SECURITY GUARD (Low Level Management)

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Advertising & Marketing

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ADVERTISING & MARKETING

Advertising is omnipresent. It is every where. Advertising is a powerful tool of business and marketing. But some others say that advertising manipulates our needs and makes us buy things, which we do not want. Advertising is considered so powerful that doing business today without advertising is like looking at a girl in a dark room. Countering claims about the powerful persuasive nature of advertising is one of the most notorious sayings in world of advertising; I know half the money I spent on advertising in wasted; but I can never find which half. Advertisers spend huge amount of money on advertising. In fact, the total estimated expenditure on advertising in India in the year 2000 is projected to make the full contribution to sales and profit. Well-planned and executed research is essential to pinpoint assess within the advertising effort that need improving. Otherwise mistakes or shortcomings in

advertising will badly affect sales measurements which are thought to be a major yardstick for advertising effectiveness.

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This would be true only when advertising is the dominant contributor to sales, where sales response is immediate. But since advertising does not work alone, sales record can not be the role measure of advertising effectiveness. So evaluate methods of measuring advertising effectiveness are adopted. Reebok, the U.S. Company, has been advertising and marketing since its inception. Reebok undergoes a tremendous amount of advertising through television, video, newspapers and magazines etc. Thus, the company itself promotes the various outlets. Reebok uses many cricketers like Rahul

Dravid, Yuvraj Singh, Dinesh Mongia for its advertisements in TV, Newspapers, magazines, and video etc. Through such an advertising strategy, Reebok has been able to influence the young generation in a big way. Recently, Reebok has undergone a major advertising campaign to launch its Iverson Collection. For promoting this campaign, company has signed Dinesh Mongia, the new cricket star who has gained tremendous amount of popularity in such a short span of his career. Specimens of advertisements by Reebok are given in the following two pages
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In the case of the retail outlet The retail outlet itself also does advertising which is mainly done through hoardings, boards and local

newspapers.

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MARKETING MIX Marketers use numerous tools to elicit desired responses from their target markets. These tools constitute a marketing mix. Marketing mix is the set or marketing tools that firm uses to pursue its marketing objectives in the target market. McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion. The particular marketing variables under each p are shown in figure.

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The Four P components of the Market Mix

Marketing Mix

Target Product Product variety Quality Design Features Brand Name Packaging Sizes Services Price List Price Discounts Allowances Payment Period Credit Terms Promotion Sales Promotion Advertising Sales Force
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Market Place Channels Coverage Assortments Locations Inventory Transport

Warranties Returns

Public Relations Direct

Marketing Marketing mix decisions must be made for influencing the trade channels as well as the final consumers. The Figure above shows the company preparing an offering mix of products, services, and prices, and utilizing a promotion mix of sales promotion, advertising, sales force, public relations, direct mail, telemarketing, and Internet to reach the trade channels and the targets customers. Typically, the firm can change its price, sales force size, and advertising expenditures in the short run. It can develop new products and modify its distribution channels only in the long run. Thus the firm typically makes fewer period-to-period marketing-mix changes in the short run than the number of marketing mix decision variables might suggest. Note that the four Ps represent the sellers view of the marketing tools available for influencing buyers. From a buyers point of view, each marketing tool is designed to

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deliver a customer benefit. Robert Lauterborn suggested that the sellers four Ps correspond to the customers four Cs. Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication

Winning companies will be those who can meet customer needs economically and conveniently and with effective communication. The marketing mix of Reebok has a focused market. It also has been campaigning on the product, price, promotion and place.

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Swot Analysis

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SWOT ANALYSIS
Internal Environment Analysis (strengths/weaknesses Analysis) This is one thing to decide attractive opportunities and another to have the competencies to succeed in these opportunities. Each business needs to evaluate its internal strengths and weaknesses periodically. It can do so by using a form like the one shown in the marketing Memo Checklist for Performing Strength/Weaknesses Analysis. Managementor an outside consultantreviews marketing, financial,

manufacturing and organizational competencies and rates each factor as a major strength, minor strength, neutral factor, minor weakness, or major weakness. Clearly, the business does not have to correct all its weakness, nor should it gloat about all its strengths. The big question is whether the business should limit itself to those opportunities where it might have to acquire or develop certain strengths. For example, managers at Texas Instruments (TI) split between those who want TI to stick to industrial electronics (where it has clear strength) and those who want
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the company to continue introducing consumer electronic products (where it lacks some required marketing strength). Sometimes a business does poorly not because its departments lack the required strengths but because they do not work together as a team. In one major electronics company, the engineers look down on the salespeople as engineers who couldnt make it, and the salespeople look down on the service people as salespeople who couldnt make it. It is therefore critically important to assess

interdepartmental working relationships as part of the internal environmental audit.

Strength Reeboks name has excellent branding and a high quality image. People buy Reebok because its quality and reliability. Consumers know they will get satisfaction by wearing this brand. Dealers and salesman who sell Reeboks product are knowledgeable and well trained in selling

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It has an excellent service network. This enables the outlet to stay ahead of competition, both in terms of quality and pricing by ensuring timely supply of each and every item needed in the showroom.

Teenagers and the young generation are crazy about this product.

Reebok has its factory situated in Bijwasan, N.Delhi. This helps to cut down the cost of production, which in turn reduces the price of the products, as the company doesnt have to import their products from outside.

Weaknesses It faces a lot of competition like Nike, Power, Phoenix etc. In some places it has not been able to compete with the Indian sports shoe manufactures because of its high prices. Its high prices have limited their range of customers. Reebok caters to only the higher middle class and top class of the society.

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Opportunity The fickle and design. This is because of the conscious nature of the target market of young teenagers and adults who like to buy the latest fashions. Moving from the specialist sports shoe market to the young and adult market. New and innovative sports shoe designs.

Threat The biggest threat is the popularity of other

manufactures. For example: Companies like Nike have given major

sponsorship for cricket and other sports. Nike has also bought the television rights for many cricket tournaments over the years. Reebok has to increase its popularity on a regular basis.

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Buying & Selling Policy

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BUYING & SELLING POLICY

The Buying and Selling policy of this Reebok showroom to be very simple. However, it would be better to know some of the sales models used by various companies. Following are the four models: Models 1. Markov-process model: This model shows the

probability of moving from a current state to any future state. Example: A branded packaged-goods manufacturer can determine the period to period switching and staying rates for her brand and, if the probabilities are stable, the brands ultimate brand share. 2. Queuing model: This model shows the waiting times and queue lengths that can be expected in any system, given the arrival and service times and the number of service channels. Example: Supermarkets can use the model to predict queue lengths at different times of the day given the number of service channels and service speed. 3. New-product pretest models: This model involves

estimating functional relations between buyer states of

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awareness, trial, and repurchase based on consumer preferences and actions in a pretest situation of the marketing offer and campaign. Among the well-known models are ASSESSOR, COMP, DEMON, NEWS, and SPRINTER. 4. Sales-response models: This is a set of models that estimate functional relations between one or more marketing variablessuch as sales force size, advertising expenditure, sales-promotion expenditure, and so forth the resulting demand level. Although, this unit is not using any special model of sales, but it maintains its record on sales. They daily update their accounts regarding their buying and selling.

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Promotion

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PROMOTION
Promotion includes all the activities the company

undertakes to communicate and promote its products to the target market. Atlas has to hire, train, and motivate

salespeople. It has to set up communication and promotion programs consisting of advertising, sales promotion, public relations, and direct and on-line marketing. The principal objective of the outlet is sale-promotion. Sales-promotion objectives are derived from broader promotion objectives, which are derived from more basic marketing objectives developed for the product. The specific objectives for sales promotion vary with the target market. For

consumers, objectives include encouraging purchase of largersize units, building trial among nonusers, and attracting switchers away from competitors brands. For retailers,

objectives include persuading retailers to carry new items and higher levels of inventory, encouraging off-season buying, encouraging stocking of related items, offsetting competitive promotions, building brand loyalty, and gaining entry into new retail outlets. For the sales force, objectives include

encouraging support of a new product or model, encouraging

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more prospecting, and stimulating off-season sales. See the Marketing Memo Sales Promotions as Brand Builders. Coupling the new Nike Air shoe with advertising featuring Michael Jordan was a touch of marketing inspiration. The US basketball star, top of his chosen sport, was signed up to promote the new product in a multimillion- dollar deal that added a new dimension to sports sponsorship. The marketing campaign developed links between Nike and Jordans athletic ability and image. Reebok hit back with its own design, the Reebok Pump shoe, but it was forced to use Shaquille ONeal, a major basketball star but second to Michael Jordan. Thus around the turn of the decade, Nikes market share rose from 25 percent in 1989 to 28 percent to 21 percent. Building on this success, Nike realized that such

promotion provided powerful support for the brand. Over the next few years, this was enhanced by the heavy funds Nike was prepared to invest. For example, in 1995 Nike invested almost US$1 billion in sports marketing compared with Reeboks spending at around US$400 million. This investment in sports marketing was much higher than previous sums. It

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was developed after Nike had assessed the results of its heavy advertising campaigns earlier in the 1990s.

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Training, Recruitment, Remuneration & Supervision

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TRAINING, RECRUITMENT, REMUNERATION & SUPERVISION

Training refers to the

teaching / learning activities

carried on for the primary purpose of helping members of the organisation to acquire and apply the knowledge, skills, abilities & attitude needed by that organisation Many companies send their new representatives into the field almost immediately, supplied with samples, order books and a description of the territory. Much of their selling is ineffective. A vice president of a major food company once spent a week watching 50 sales presentations to a busy buyer for a major supermarket chain. Here is what he observed: The majority of salesmen were ill prepared, unable to answer basic questions, uncertain as to what they wanted to accomplish during the call. They did not think of the call as a studied professional presentation. They didnt have a real idea of the busy retailers needs and wants.

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Todays customers expect salespeople to have deep product knowledge, to add ideas to improve the customers operations, and to be efficient and reliable. These demands have required companies to make a much higher investment in sales training. Today, new sales reps may spend a few weeks to several months in training; the median training period is 28 weeks in industrial-products companies. Training time varies with the complexity of the selling task and the type of person recruited into the sales organization. At IBM, new reps receive extensive initial training and may spend 15 percent of their time each year in additional training. Sales training programs have several goals: Sales representatives need to know and identify with the company. Sales representatives need to know the companys products. Sales representatives need to know customers and

competitors characteristics.

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 Sales representatives need to know how to make effective sales presentations. Sales representatives need to understand field procedures and responsibilities. Reebok does train its employees with the help of latest techniques like cassette tapes, videotapes, CD-ROMs etc. A trainee can practice sales calls with a screen actor who portrays a buying executive in a particular industry. The actor buyer responds says. Recruitment is the process of discovering sources of differently depending on what the trainee

manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that therefore

manpower in adequate numbers to facilitate effective selection of an efficient working force. Recruitment is carried out through common sources Such as: Advertisements, State employment Exchange Agencies
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 Private employment Agencies Present Employees. Reebok outlets generally recruit its employees through Advertisements, Private employment agencies and Present employees. Remuneration The salary of the salesman is decided both by the owner and the manager of the outlet on the basis of their experience, capabilities, way of talking and presenting the product to the customers and way of convincing the customer etc. Above all this work performance of a salesman decides what salary he may get. The salesmen are also given commission if they exceed the target sale. Bonus is also given to the salesmen once a year on Diwali. Supervision The manager Mr. Navneet does the work of supervision. He keeps a regular check whether the customers have any

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problems with the salesman. He sees to that the salesman treats every customer equally and nicely.

Selling Concept & Selling Methods

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SELLING CONCEPT AND SELLING METHODS

THE SELLING CONCEPT The selling concept holds that consumers and

businesses, if left alone, will ordinarily not buy enough of the organizations products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotion tools to stimulate more buying. The selling concept is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots. These industries have perfected various sales techniques to locate prospects and hard-sell them on their products benefits. The selling concept is also practiced in the nonprofit area by fund-raisers, college admissions offices, and political parties. A political party vigorously sells its candidate to voters. The

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candidate moves through voting precincts from early morning to late evening, shaking hands, kissing babies, meeting donors, and making speeches. Countless dollars are spent on radio and television advertising, posters and mailings. The candidate flaws are concealed from the public because the aim is to make the sale, not worry about post purchase satisfaction. After the election the new official continues to take a sales-oriented view. There is little research into what the public wants and a lot of selling to get the public to accept policies the politician or party wants. Most firms practice the selling concept when they have over capacity. Their aim is to sell what they make rather than what the market wants. In modern industrial economies, productive capacity has been built up to a point where most markets are buyer markets (the buyers are dominant) and sellers have to scramble for customers. Prospects are

bombarded with TV commercials, newspaper ads, direct mail and sales calls. At every turn, someone is trying to sell something. As a result, the public often identifies marketing with hard selling and advertising.

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But marketing based on hard selling carries high risks. It assumes that customers who are coaxed into buying a product will like it; and if they dont, that they wont bad-mouth it or complain to consumer organizations and will forget their disappointment and buy it again. These are indefensible assumptions. One study showed that dissatisfied customers may bad-mouth the product to 10 or more acquaintances; bad news travels fast. Selling Methods Direct selling: At this showroom of Reebok only direct counter sales takes place. No commodity is sold on our installment

basis. No credit sales take place and there is no home delivery service. In case of counter sales, first of all the bill is made, of which one receipt is given to the customer and the other is with the cashier, who after checking the total article purchased by the customer and counting the total amount of the bill, will give the delivery. No orders are accepted through telephone or mail order service. Credit cards like Visa, American Express etc. are accepted.

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Layout & Display

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LAYOUT AND DISPLAY

Layout and display are among the most important factors of sales promotional activities. It is done to attract and catch the eyes of the people about the kind of products and variety of products in which the outlet engages. Layout includes the interior display of goods. On the other hand, display or window dressing is the exterior show up of the outlet. The moment we enter this outlet all we think about is SPORTS. There is a huge display board at the entrance, which is very colorful and attractive. The customer/visitor is so stunned by seeing the display of the product that they hardly consult the sales executives. The outlet adopts the powerful mode of visual presentation rather than scripts. Visual presentation is much powerful than any printed material. Shoes are kept on attractive racks so that the customer can touch, feel and try out the shoes. There are three or four mannequins, which are dressed attractively with apparels made by Reebok. Shirts and shorts are also on racks and there
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is also a try room where the customer tries out the garments. Thus the customer can be fully satisfied by trying out everything which he buys from the showrooms.

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Price Policy & Price Range

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PRICE POLICY AND PRICE RANGE

Price Policy : Price policy calls for the producer to establish a price list and schedule of discounts and allowances that intermediaries see as equitable and sufficient. Price Decision Prices are a key positioning factor and must be decided in relation to the target market, the product-and-service

assortment mix, and competition. All retailers would like to achieve high volumes and high gross margins. They would like high Turns x Earns, but the two usually do not go together. Most retailers fall into the high-markup, Earns, but the two usually do not go together. Most retailers fall into the highmarkup lower-volume group (fine specialty stores) or the lowmarkup, higher-volume group (mass merchandisers and

discount stores). Within each of these groups are further gradations. Thus Bijans on Rodeo Drive in Beverly Hills prices suits starting at $1,000 and shoes at $400. At the other extreme, Odd Lot Trading in New York City is a superdiscounter that sells odd lots and closeouts at prices below those of normal discounters.

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Retailers must also pay attention to pricing tactics. Most retailers will put low prices on some items to serve as traffic builders or loss leaders. They will run storewide sales. They will plan markdowns on slower-moving merchandise. For example, shoe retailers expect to sell 50 percent of their shoes at the normal markup, 25 percent at a 40 percent markup, and the remaining 25 percent at cost. Some retailers have abandoned Sales pricing in favor of everyday low pricing (EDLP). EDLP could lead to lower advertising costs, greater pricing stability, a stronger image of fairness and reliability, and higher retail profits. General Motors Saturn division states a low list price for its cars and its dealers dont bargain. Wal-Mart also practices everyday low prices. Feather cites a study showing that supermarket chains practicing everyday low pricing are often more profitable than those practicing sales pricing. Price Range : The price range of this Reebok Retail Outlet is different in the case of apparels and shoes. For apparels the price range is from Rs. 379 to 1400. In the case of shoes price range is from Rs. 990 to Rs. 7990.

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Sales Accounts, Cash Sales & Credit Sales

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SALES ACCOUNTS, CASH SALES AND CREDIT SALES

In this Reebok outlet, the cash book is a self record and all the sales proceeds are entered into the cash book. The auditor annually checks these entries of accounts at the end of every financial year. No discount is given to the customers as Reebok has fixed prices. This outlet also does not carry out credit sales.

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Achievements

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ACHIEVEMENTS
As a retail outlet : Since the history of this retail outlet is very small, its major achievement is attracting almost all type of customers is such a short time. Another achievement of this outlet is that customers come to this outlet not only to buy shoes but apparels and other sports accessories. Customers of South Extension now know that they will be satisfied if they buy from this outlet as they can buy original Reebok products. Moreover, the customer can try out whatever he buys. Thus the outlet has achieved a good name in the market. As a company: Nike was profitable and continuing to develop its role as a specialist US sports shoe manufacturer with no production facilities in its home country. Then along came competition in the form of a new sports shoe manufacturer, Reebok. From a start-up company in 1981, Reebok went into battle against Nike under its founder and chief executive, Paul Fireman. Reebok launched a strong and well-designed range of sports shoes with great success. By the mid-1980s, Reebok had
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equalled Nikes annual sales in a fierce competitive battle. In 1987, Reebok was clear market leader with sales of US$991 million and a market share of 30 percent, compared with Nike sales of US$597 million and a share of 18 percent. Part of the problem and opportunity for both

manufacturers was the fickle and design-conscious mature of the target market: young, hip teenagers and adults buy the latest fashions. Both Nike and Reebok realized that, in order to build volume, it was necessary to move from the specialist sports shoe market to wider adoption by this much target, fashion-aware teenage and young adult market. This was the battleground that was initially captured by Reebok with good products and a campaign of public relations that was highly disrespectful of Nike. Mr. Fireman criticized Phil Knight as being just a shoe guy who saw himself as being a big-time presence in sports. In response, Mr. Knight responded by saying that he hated his competitor and that the most innovative piece of R&D equipment they have is the copy machine. One author of a book on Nike commented: Paul Fireman was installed as a devil figure inside Nike, and he remains a dark presence to this day.
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To hit back against Reebok, Nike then began to invest considerable sums on developing new and innovative sports shoe designs. The most successful of these was begun in the late 1980s, the Nike Air shoe. It was an intuitively simple technology to understand, said John Horan, publisher of sports Goods Intelligence, a US industry newsletter. Its obvious to consumers that if you put an airbag under the foot, it will cushion it. But it was not until 1990 that the Nike Air shoe was launched and began to deliver success for Nike. Thus the 1980s were both the decade of difficulty and the time for renewal. Nike had learned about the heat of competition and the need for innovation and continual R&D in its shoe designs.

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Review

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REVIEW
Reebok has been successful in maintaining its brand image and brand positioning among the Delhites and the Indian Consumer. But, there is a wide range of Indian population who prefer to buy and wear Indian shoes as they are available at cheaper prices. In spite of this the Reebok outlet in South Extension is considerably doing well as far as sales is concerned. The outlet has been able to live up to the expectations of consumers as far as quality and service is concerned. On the other hand the management has been able to run its operation in the minimum possible cost; for example employing only three sales representatives who handle all the sales

themselves.

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BIBLIOGRAPHY

www.reebok.com
http://en.wikipedia.org/ http://books.google.co.in/ www.google.com

www.topmensmagazines.com

Various first hand data provided by personnel at Reebok Showroom, South-ex

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