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Reebok is an English footwear and apparel company which was founded in 1958 by Joe and Jeff
Foster in Bolton, England. It is a global brand that creates and markets sports and lifestyle products
built upon a strong heritage and authenticity in sports, fitness and women’s categories. The brand
is committed to designing products and marketing programs that reflect creativity and the desire to
constantly challenge the status quo. The company has become a subsidiary of German sporting
goods giant Adidas since 2005.

Reebok produces and distributes fitness, running and CrossFit sportswear including clothing
and footwear. It is the official footwear and apparel sponsor for Ultimate Fighting
Championship (UFC), CrossFit, and Spartan Race. Reebok caters to hockey aficionados through its
Canadian Reebok-CCM (Canada Cycle & Motor Co. Ltd) Hockey division, and its Sports Licensed
Division. Reebok International Ltd. is known to be a “leading worldwide designer, marketer and
distributor of sports, fitness and casual footwear, apparel and equipment. It operates more than
750 retail stores. Reebok, which has been credited with igniting the aerobics craze of the early
1980s, has fallen out of step since then. In 2005, the brand was purchased by Adidas for 3.8 billion
dollars. However since then, Reebok hasn’t been very profitable. In order to increase sales and
differentiate the brand from Adidas and Nike, the company decided to launch a new branding
strategy by focusing on an emerging niche market: the CrossFit movement. This movement is a new
training program devised by fitness experts in the US. It helps achieve several goals (weight loss,
strengthen and tone muscles, increase cardiovascular fitness) by focusing on all physical skills
equally. Under Adidas, the company is trying to regain traction in the market for athletic shoes and
apparel.

Reebok Brand Analysis

Parent company Adidas
Category Apparel and accessories
Sector Lifestyle and Retail
Tagline/ slogan I am what I am
USP Reebok company is known for its innovative and comfortable footwear and
sports apparel.
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It came to India in 1995 to develop the middle segment of footwear market. The first three years in
India were difficult for Reebok to figure out the right marketing mix. Through over the years, once it
established its brand, a descent market segment started purchasing shoes for some form of fitness
activity. Reebok India has bagged the prestigious Subsidiary of the Year award many times. It has a
market share of 47 per cent in sports footwear and apparel category in Indian market. The
company has also started expanding in Pakistan and Sri Lanka.

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 fulfill
their true potential and reach heights they may have thought un-reachable.

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 POSITIONING

Celebrate Individuality in Sport and Life

Reebok understands that people are, above all, unique. Reebok’s positioning reflects this;
celebrating the distinct qualities that make people who they are - their unique points of view, their
individual style and their remarkable talents and accomplishments. Reebok celebrates their
individuality, their authenticity and the courage it takes to forge their own path to greatness. While
some may call them crazy or eccentric, Reebok calls them visionary and original.

REEBOK'S PURPOSE

To Empower Global Youth to Fulfill 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 fulfill their potential and live healthy, active lives.
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REEBOK'S BRAND TERRITORY

Having Fun Staying in Shape

Having Fun Staying in Shape comes to life through a fun, bold, provocative manner
expressed through fresh, eye catching imagery signed off with a unique 'Reeword.'
The tone and manner allows the consumer to look at sport and lifestyle through our
lens of 'Ree.'

SUB-BRANDS
Reebok International

Rock Port

RBK CCM Hockey

Greg Norman Apparel

Ralph Lauren Brand

The Hockey Company

Avia

Onfield Apparel

Athletic footwear

DMX2000

3D Ultralite

Ralph Lauren Apparel line

Reebok’s Alms

Reebok addressed their aim to focus on three trend growing aspects; exercise,
increasing the number of women involved in sport, and street culture/casual wear. In
1982 they launched ‘The Freestyle’, which was the first athletic shoe designed for
women. Fitness pro Gin Miller became the face of the company’s aerobic fitness
campaign and program, ‘Step Reebok’. Reebok achieved sales figures of $13 million
and ‘The Freestyle’ trainer still remains Reebok’s most sold shoe throughout their
history.
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Product line

The product line of Reebok is generally consists of sports accessories and apparels
which is divided into four sections : -

1. Shoes – Reeboks speciality is their shoes. They vary from shoes for every day
use to professional footwear. They have around 4000 different types of shoes.
They also sell floaters and sandals which have gained a tremendous amount of
popularity among the youth.

2. Apparels – These includes t-shirts, shirts, track suits, shocks, caps etc.
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3. Sports equipments – Cricket bats & balls, gloves and tennis balls.

4. Exercising/health products – Dumbles, skipping ropes etc.

Business Plan
Reebok’s main focus and plan has always been to be the top player in sportswear industry.
Acquiring with Adidas in 2005 was their business strategy. Both companies have taken clear
positions in the marketplace. Adidas targets at competitive sports with its sports division based on
innovation and technology, sports lifestyle, and fashion consumers with its sports style division.

Reebok has become the fitness and training brand for active and casual sports. Their main focus
and objective is to establish Reebok as the leading fitness and training brand. Even after its merger
with Adidas, the Reebok brand has continued to execute its old strategy, positing itself focused on
fitness and training. They developed a clear path for its key business going forward: Own women’s
fitness, and Challenge in Men’s training/sports. It is committed to make fitness fun again-
challenging men and women to fulfil their potential in sport and life by providing them with the
opportunities, products and inspiration to have fun staying in shape.
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Competitors

1. Nike
2. Adidas
3. New Balance
4. Converse
5. Puma
6. Fila
7. Bata
8. Liberty Shoes
9. Under Armour
10. Umbro
11. Woodland
12. Asics

Reebok marketing strategy

Reebok has dominated the Indian sports- wear market. While its major competitors
Adidas (now its sister concern) and Nike have not been as successful in the Indian
market. Reeboks main advantage has been that it understood the Indian consumer
very well and has made an effort to grow alongside him. For instance, when the
company came to India, all that the consumers wanted were an international brands
of footwear and Reebok gave them that at an affordable price." Today, with sports
becoming fashionable, the bulk of the sales come from the Rs 2000 to Rs 4000
segment compared to two years ago when most of the sales would come from the Rs
1000 to Rs 2000 segment. One aspect to Reeboks success has been its ubiquitous
retail chain. The company is retailing from almost 750 exclusive stores. It also retails
from two thousand multi-brand outlets.

Reebok’s biggest investment has been in the field of marketing infrastructure,

creating an international and uniform retail ambience in all their exclusive
stores. Lately the company has come up with its NBA-NFL range of T-shirts that are
flying-off shelves in retail stores due to the customer demand for the Americana look.
Reebok is becoming stronger as a brand day by day. To reinforce Reebok’s position as
a premium sports and lifestyle brand, Reebok intend to significantly improve and
increase their product offering at high- and mid-price points to drive growth in
average selling prices. The Reebok brand has continued to execute its old strategy,
positioning itself as a premium sports and lifestyle brand focused on fitness and
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training. Based on its roots and heritage in fitness/training, consumer insights and
positioning within the Adidas Group, Reebok developed a clear roadmap for its key
businesses going forward: Own Women’s Fitness, Challenge in Men’s Training/Sport
and Revive Classics. On the promotions front as well the company has increased its
spend and is roping in top sports persons to push its brand. Reebok has tied-up with
cricketers like Rahul Dravid, Mohamed Kaif, Yuvraj Singh, Irfan Pathan, Dhoni and
Harbhajan Singh. In tennis, it sponsors the Davis Cup and backs Prakash Amritraj. In
the upcoming field of motor racing it is sponsoring the fastest Indian Narain
Kartikeyan.
Four P Components of Marketing Mix

1. Product - Reebok has strategically launched various new products in Men’s and Women’s
segment. The product range of Reebok consists of footwear, apparels and sports related
accessories.

Shoes
ReeTone: Reebok conducted a survey and concluded that Women are busy and don’t always find
the time to fit in their daily workout. Based on this relevant consumer need, in 2009, Reebok
launched the EasyTone footwear collection that allows consumers to "take the gym with them".
EasyTone is based on Reebok’s proprietary "moving air" technology. It involves two balance pods
under the heel and forefoot of the shoes that create natural instability with every step, forcing the
muscles to adapt and develop tone. Building on the huge success of EasyTone in 2009, Reebok will
launch an integrated marketing campaign around the world in 2010 under the motto of "ReeTone".
Reebok is also expanding its footwear offering into the running and training category, launching
RunTone and TrainTone in 2010.

ReeGym: Through Reebok’s partnership with Cirque du Soleil, the brand will continue to develop
new inspiring workout experiences and product collections to strengthen its position in the gym.
The overriding aim of this collaboration is not just to create physically demanding workout routines,
butto create exercises that are fun, unique and enjoyable. In spring 2009, Reebok and Cirque du
Soleil launched JUKARI Fit to Fly, taking inspiration from the theatrical and physically demanding
artistry of Cirque du Soleil. Building on this, in 2010 Reebok and Cirque du Soleil are launching
JUKARI Fit to Flex – a workout that enhances flexibility and muscle tone with the help of a
specifically designed JUKARI band. The JUKARI training experience is accompanied by a fully
integrated women’s fitness range, the Reebok Cirque du Soleil collection, which combines the
performance demands of the workout with the creativity of Cirque du Soleil. In addition, Reebok
launched the On The Move collection of apparel and footwear, created for the needs of a woman’s
busy lifestyle. The collection is versatile and able to be mixed and matched in or out of the gym.

ReeZig: In spring 2010, Reebok will introduce ZigTech, a completely new training shoe for
endurance sports like running and agility sports. In product testing, a host of enthusiastic athletes
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and consumers confirm that ZigTech is not only visually striking, but more importantly it addresses
an unmet need of fitness runners and athletes. This need is to get more out of their workout and
reduce wear and tear – thus allowing them to enhance their lifetime as an athlete. By maximizing
energy transfer through its zigzag geometry back to the actual running stride, this shoe allows the
wearer to train longer, faster and healthier. This is achieved as the unique energy and cushioning
system reduces stress on muscles by up to20%, therefore reducing wear and tear on the runner’s
body. The introduction of ZigTech will be supported by an integrated global marketing campaign
"ReeZig" – featuring key athletes from Reebok’s roster – with major launches planned to coincide
with global event milestones such as the Super Bowl.

ReeTrain: In 2010, Reebok has introduced a complete range of strength training products for men
based on its muscle toning platform of "moving air". Air-filled pods under the heel and forefoot of
the shoes create a natural instability with every step, forcing the muscles to adapt and work harder.
This allows the consumer to "get more out of their workout". The offering includes EasyTone for
walking and casual wear, TrainTone for training exercises and the gym, RunTone for running and
JumpTone, helping to strengthen key leg muscles and thus allowing athletes to improve their
vertical leap.

Reebok Junior: Going forward with its strategy of retail segmentation, Reebok’s latest retail
venture, Reebok Junior, is largely to satisfy the company’s ambition to "become India’s largest kids
apparel brand by end-2009." Small surprise that other kids apparel retailers like Liliput are already
having nightmares. Reebok Junior has 30 stores across the country as of now and Company says
that the plan is to rollout 100 stores by the end of this year. Given the aggressiveness, in its
debutant year itself, the kiddies segment contributed about 5% to the total turnover of the
company. Although Reebok Classics was born from sport in the early 80s, today it represents the
intersection where sport meets style, offering lifestyle footwear, apparel and accessories. In
rebuilding the Classics business, a key tenet of the strategy is to control distribution by segmenting
the product offering available for retailers, as well as keeping a tight rein on supply. In 2009,
Reebok has continued to tightly manage its directional sport and generalist retail channels
particularly in the United States and in Europe, with the primary aim to clean up old inventory and
reduce the brand’s exposure to low price points. In addition, Reebok has launched new product
initiatives in a controlled and disciplined way. At the same time, the brand has begun to strengthen
its position in the select and trend channels with limited editions and special projects. An example
of this is"Pump20" which was kicked off in November 2009 to celebrate the 20th anniversary of The
Pump™. Through a partnership with 20 select retailers around the world, custom collaborations of
The Pump™ were developed and exclusively launched in select stores. To leverage its iconic sports
heritage, Reebok revives its Classics business by focusing its product range with two priority pillars
that define the Classics product architecture: Always Classic and New Classic. Always Classic: Always
Classic products harken back to the brand’s roots and merge iconic models from the 80s and 90s
with new midsole/outsole technologies. New Classic: The New Classic segment represents the
modern interpretation of Reebok’s roots. Inspired by the past, New Classic collections merge sport
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and style to re-energies the category. The launch of the Women’s Fly Generation collection
represents this new direction with products like theTop Down and Courtee Mid.

Apparels

EA 7 / Reebok – Apparel: The apparel is inspired by the ‘alter ego’ concept of sport and fashion and
can be combined with the footwear for a confident, total look. Rich, luxurious fabrics from the
fashion world of Emporio Armani have been infused with cutting-edge Reebok technologies to
maximize comfort, fit and performance. Signature fashion detailing inspired by crocodile skin
changes according to movement in the fabric and expresses a dynamic visual effect during
performance. For men, the apparel features sophisticated key colour ways of black, misty grey and
white, punctuated with fashion tones such as fluorite yellow for a confident, sexy look. Sleek, fitted
running tanks and tops incorporate reflective branding, zip closure, bonded mesh paneling as well
as PlayDry, a moisture management system that wicks away perspiration. Stylish, highly functional
running tights employ isolated compression for optimized functionality. Long-sleeve technical tops
utilize 2-way front zip detailing and elbow articulation. Running shorts incorporate X-static, an anti-
microbial, odour free, anti-static thermo-regulation technology.

Fitness fleece hoodies with dual button closure, stand-up collars and built-in hoods are completed
by kangaroo front pockets and branding on the left arm. For women, relaxed fit harem pants are
teamed with asymmetrically fastening hooded tops. The look is flattering, slim on the hips and
baggy around the ankle, with snap button closure at the lower leg. A Play Dry base layer moves
moisture, accelerates evaporation and reduces abrasion without trapping the body’s thermal
energy. Slim fitting fitness pants, tunic dresses in magenta flash and double breasted snap button
fleece hoodies compliment the fitness story.

Running apparel for women offers soft, supple, sexy fabrications. Chaffing is eliminated by the use
of Smooth Fit technology which wraps around the body and creates interior surfaces that eliminate
friction during movement. Running tanks show tonal crocodile print on the back mesh detail while
running tights, tees and all weather H20 jackets complete the collection. Reebok men’s clothing
consists of Reebok t-shirts, Reebok polo shirts, Reebok jackets, Reebok hoodies, Reebok tracksuits
and sports training clothes made with Reebok Play Dry fabrics to keep body temperature perfect.
All of these clothing’s are designed to suit the training needs, the Reebok Light weight Track Jacket
is great for outdoor running. The Reebok Run t-shirt is perfect for running at the gym and outdoors.
Reebok Play Dry fabric, the Reebok Pace Run mens t-shirt works to manage moisture and keep you
feeling cool. Sporty and sleek, the women’s Reebok Evolution training range provides high fashion
sports and gym clothing. Women’s Reebok sports tops, Reebok t-shirts, women’s Reebok shorts,
Reebok tank tops, women’s training pants, Reebok 3/4 pants and women’s trainers. Perfect for
working out at the gym and running you’ll find everything you need for sport. Designed with an
elegant cut, the women’s Reebok Polo Shirt is great for standing out – whether you’re working out
or enjoying your leisure time. These outfits are perfect for gym training, running, and dance and
relaxing. Lightweight and designed to keep you at the optimum temperature, the Reebok Play Dry
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Tank is great for exercising at the gym. The women’s Reebok Core Long Bra is excellent for intense
workouts at the gym, aerobics, dance and running.

Price

Reebok follows the common pricing strategy. Their main aim is to survive and grow in the market.
But as such Reebok follows maximum market skimming strategy. Whenever Reebok unveils a new
technology in market they set a high price for it. Reebok starts for such products with high prices
and then slowly drop prices over time. As Reebok can sense that whenever they launch a product
they have sufficient number of buyers for that product and Reebok keeps the price high so that
they are able to control the demand, earn more profit and communicate to buyers with high price
that the product is superior. Reebok usually follow skimming strategy but when it entered into the
apparels and other accessory market in India it followed penetrating pricing, i.e. Reebok set low
prices for apparels to attract the customers at the start to an introductory price, and as the
products became more popular the prices were raised to a normal level. Companies usually set
their prices to stay ahead in the market.

In 2006 when Nike and Puma were also getting popular among youth, Reebok came up with
destroyer pricing strategy and set deliberately very low prices hoping that the competitors cannot
match it and in fact it helped Reebok acquiring a major share. Reebok usually puts its product on
Sale for clearance purposes two times a year. Reebok came to India in the mid-90s mainly to
develop the middle segment of 69 the foot wear market in Africa, the Middle East, and Central and
South Asia, and as a fallback in the event of an interruption in Chinese supplies. The annual threats
of adverse action against Chinese imports in to the United States, prior to the admission of China to
the World Trade Organisation in 2001, were noted in each Reebok annual report as having a
potentially negative financial impact. Reebok was the first among the big three that identified India
as a huge emerging market and a sourcing base for global exports. In order to combine the
popularity of its soccer and athletic brand with the popularity of football and basketball enjoyed by
Reebok, Adidas-Salomon bid $3.8 billion in early August 2004 to acquire the latter. This deal has
created a $11 billion sportswear giant and poses a formidable threat to arch rival Nike.5.3.

Promotion

Advertising Agencies

To promote its brand, Reebok has been taking services from advertising agencies for quite
sometime now. During 2004-2007, McGarry Bowen was Reebok’s brand agency globally. During this
period, Reebok had done advertising and marketing for various products. Pump sneakers
advertisements, "Two People in Everyone" ad campaign, Runners head game- I am What I am ad
campaign were all under this advertising agency. In March 2009, Reebok changed its advertising
agency to DDB Worldwide. This agency handled Reebok’s brand advertising and marketing
communications as Reebok is trying to establish its brand in the women’s fitness market. The ad
campaign "Your Move" was done under this agency. However, Reebok handed its regional
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advertising business to WPP subsidiary Soho Square, which was supposed to manage Reeboks key
markets in the Asia Pacific including Hong Kong, Japan, Korea, Australia and India and China.

Key Market Segments

Reebok has started to shift its focus on specific market segments. It has developed a clear road map
for its key businesses going forward: Own Women’s Fitness, Challenge Men’s Sport and Revive
Classics.

Promotional Methods

Reebok offers great deals on footwear, apparel, and fitness equipment for women, men, and kids.
The company uses various promotional tools to bring awareness among its customers. It offers
discounts, vouchers, coupons and custom made sneakers on their products. Apart from this,
Reebok uses various media tools to promote its brand and create awareness about the products.
Reebok uses television commercials, print ads, billboards, online advertising, sponsorship events
and various advertising campaigns for its promotion.

Above the line

Print Media Advertising

Reebok promotes its products through print media advertising which includes newspapers and
Magazines. It also includes outdoor billboards, transit posters, the yellow pages, and direct mail. In
India, Reebok features its print ads on magazines like Flimfare Magazine, Cineblitz Magazine,
Stardust Magazine. The recent popular print ad campaign of Mahindra Singh Dhoni and Bipasha
Basuwere featured in these magazines.

Newspaper

Reebok also features its ad in supplement papers of national dailies like HT City of Hindustan Times,
Delhi Times of Times of India, Mumbai Times of Times of India.

Television Media

Reebok uses many celebrities in India to shoot in a television commercial for promoting its different
categories of products. For sports related products, it has primarily used Indian Cricketers such as
M.S. Dhoni and Rahul Dravid. Recently, It has signed a deal with the great Sachin Tendulkar as well.
Reebok uses this marketing tool to gain recognition for its products and promote specific stores or
products. Reebok had used various sportsmen and non-sportsmen as their brand ambassadors. In
terms of general fitness; Reebok usually endorses famous models of bollywood stars.

The Reebok segment is comprised of the Reebok brand, Reebok-CCM Hockey and Rockport. In
2008, the Reebok brand has further refined its strategy considering the brand’s heritage and values,
consumer insights and positioning within the adidas Group port folio. Inspired by its roots in sport
and women’s fitness, Reebok developed a clear roadmap for its key businesses going forward: Own
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Women’s Fitness, Challenge Men’s Sport and Revive Classics. Central to Reebok’s brand heritage is
the courage to challenge convention. Unlike many other brands, Reebok is committed to make
fitness fun again – challenging men and women to fulfill their potential in sport and in life by
providing them with the opportunity, the products and the inspiration to have fun staying in shape.
In 2008, Reebok commercial of "Your Move" ad campaign featured celebrities like Bipasha Basu and
Mahindra Singh Dhoni.

Infomercial

Reebok also does its marketing through infomercials. There are two types of infomercials,
described as long form and short form. Long form infomercials have a time length of 30 minutes.
Short form infomercials are 30 seconds to 2 minutes long. Infomercials are also known as direct
response television (DRTV) commercials or direct response marketing. The main objective in an
infomercial is to create an impulse purchase, so that the consumer sees the presentation and then
immediately buys the product through the advertised toll-free telephone number or website.
Infomercials describe, display, and often demonstrate products and their features, and commonly
have testimonials from consumers and industry professionals. Reebok arrange several infomercials
in the sports based program. Reebok first infomercial was on April 2001 for the Reebok Core Board,
a stationary muscle- training program. It was a 28-minute infomercial which demonstrated the
system, including the work out regimens, user testimonials and the system

Internet

Online purchase and marketing has been a great revolution in last 2-3 years in India. Thus, Reebok
is also selling its same products as they do in stores through web as well.Reebok.com has not done
much to promote its web site, but they do put their web site address at the bottom of all their
television commercials and print advertisements.

Sponsorship Advertising

To cater to its major market sports playing people, Reebok had sponsored many sports both
internationally and nationally. The company had tie-ups with various sports for providing apparel,
footwear and cricket equipments Reebok has sponsored sports kits for the great rich Indian Premier
League teams, such as the Royal Challengers Bangalore, Kolkata Knight Riders, Rajasthan Royals,
Chennai Super Kings and Deccan Chargers in the first edition of the league held in 2008.Reebok also
became the official partner of Force India on February 2009. Force India - India’s only Formula One
Team - is all set to speed its way into the fast-paced lives of more and more Indians by partnering
with premier sports and lifestyle products giant Reebok as its official apparel and footwear
merchandising partner for the next 5 years. After inking the association in 2008, the partnership
between Force India F1 team and Reebok has rolled out with the 2009 Force India Team wear
collection.
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Film Promotions

Reebok, the world’s leading sportswear brand, is unveiling its ‘My Name is Khan Collection’,
showcased in the most awaited movie of the year starring Shahrukh Khan, Kajol and other stars.
The new range consists of footwear and apparel and will be available across Reebok stores in the
country.

Below the line

Reebok is also directly interacting with its customers to promote its products. The company has
decided to explore the parks frequented by joggers to undertake promotional activities for the
campaign. Reebok easy vans along with trainers will demonstrate the spirit of Reebok Run Easy at
the parks in the cities like New Delhi, Banglaore, and Mumbai. The trainers will also teach fitness
steps like warm ups, breathing patterns and foot movements to the joggers.

Reebok Taglines Development

Tag lines always give a brand its identity as well as a momentum, if it is used the right way. It is very
important to develop a catchy corporate tagline in addition to a great corporate logo that will
effectively communicate in one sentence what services or products your company sells. Over the
years Reebok has constantly changed its taglines and highlighted on different aspects of fitness.
Reebok’s taglines are focused on women fitness - where it has deep roots; men’s fitness and
training, to be credible an athletic footwear brand; and classics. In 2008, Reebok has signed an
endorsement with Bipasha Basu to make fitness fun with Reebok. Reebok pinpointed the consumer
insight that women perceive exercise as a boring, and would workout more often if the gym was
fun. Reebok tried to make fitness fun again through an exciting partnership with top instructors
from around the world. Reeboks challenger approach was to provide consumers with the choice to
take the boredom out of working out. Running online, out-of-home, in-store, and in print, the
campaign features fun, engaging taglines such as, "Less work, more play. Fitness is what you make
of it. Your Move In 2006, Reebok had a tagline "Run easy". The Run Easy campaign took 180 degree
turn from traditional sport advertising. It addresses the majority of runners, emphasizing on
running as a social activity and more importantly, fun. The campaign was well liked by the people
and Reebok had created a companion site called GoRunEasy.com to emphasize the social aspect of
running. Some of the other Taglines of Reebok are: "Have Fun While You Run" "I am what I am"
"Take the gym with you" "Eye candy for your feet" "Little Said, greatly felt.

Place

Reebok reaches out to its target customers through its 1000+ exclusive stores, 200+ shops in the
shop outlets & 2500+ dealer outlets. The footwear franchise provides a range of footwear such as
for Adventure, Basketball, and Casual and Cross Training. The Reebok franchise also has shoes for
Running, Soccer, Tennis, Walking and basic sandals for the men. The clothing and footwear
franchise has its apparel section for the women and men. Reebok India’s footwear and athletic
apparel market share was 54 percent as 2009 came to a close, up from 51 percent the year before.
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That’s a far cry from Reebok’s United States numbers. The company was the first to introduce
women’s athletic shoes in 1982 and once enjoyed a dominant share of that market. The company
had just a 2 percent share of the women’s footwear market in2009, down from an almost 9 percent
share just two years ago. Reebok was purchased by German sports wear giant Adidas in 2006 as the
companies sought to catch U.S. market leader.

Market Segmentation, targeting and positioning of Reebok

Market Segmentation:

Reebok has segmented the market according to different ages and targets all the customers who
want to be fit and are adventurous and sporty. It offers ranges of products on footwear, fitness
equipment and apparels for men, women, and kids. The product ranges have been segmented
according to age and the required comfort and design for different age groups. It plays a key role in
marketing strategy. While considering market segments, Reebok considers the following groups –

1. Athletes – Runners, Aerobics, Dancers, Sports persons, etc.

2. Non-Athletes

For Reebok, the primary market group is ‘Athletes.’

 Age Segmentation – The key consumers would be Athletes which indicates that they will be
mostly young people focused on their fitness and includes people belonging to schools,
colleges, universities and young executives. The age varies from 10 years to 35 years.
 Gender Segmentation – Reebok distributes products as per requirement of both male and
female. It designs shoes, clothing and accessories based on male and female genders.
For example , the shoes made for male are mostly black and blue with male centric design
and the shoes for female are mostly in pink, purple and white with more feminine designs.
 Benefit Segmentation and Wage rate segmentation – It is very important for marketers to
analyse variables such as, the degree to which the products will be beneficial to the
consumers and the frequency of using it. Reebok always produces shoes, apparels and
accessories keeping it’s target customers and how it will be beneficial for them in their
mind.

Targeting :

Focusing on the consumers have been an important part of Reeboks deigns of the products and
also its marketing strategy. The urban consumers from the upper-middle class are the target
market. Consumers who follow niche discipline like combat MMA and Cross-fit are also being
targeted by the brand. Reebok has an exclusive deal with Cross-fit and has become the exclusive
provider of apparel, footwear, and accessories for the brand.
 Page 15 of 32

Positioning :

Reebok’s positioning is very unique in the market and it understands that the consumers are unique
and has different requirements. The positioning of Reebok is to celebrate the distinct qualities
of people and appreciate what makes them who they are. It celebrates, authenticity and
individuality.

In its #FitToFight campaign encouraged women to fight and be physically, mentally and socially fit.
Reebok claims to be a woman-first brand and also a feminine brand.

Franchise model

In 2009 Reebok joined hands with the largest integrated franchise and retail solution provider
Franchise India Holdings Limited (FIHL) in order to expand the franchise opportunity. Interestingly,
all of Reebok’s stores in India are franchisee-owned. The Company has taken great pains to deal
with the accompanying trouble of maintaining brand consistency in such retail models. It is very
choosy in selecting our franchisees and even our sales team. But once on board, every month, the
company sends their own sales people visiting each Reebok store to address any issues that crops
up. Besides, the company tries to always stay on top of new trends through product proliferation,
brand extensions and segmentation strategies. For example, Connaught Place, Delhi where Reebok
has four stores and each of these stores offers different things in a different ambience to different
consumers, adding that the one floor of the first store has lifestyle products and the second floor
has sports goods. Another store only displays apparel for women, while the third store is for the
kids. Such a segmented retail strategy allows Reebok to rake in Rs.2.5 crores annually from
Connaught Place itself."

Future expansion plans

Reeboks other brand Rockport seems to be getting the rough edge of the deal so far as expansion
and even promotions are concerned. But Company is quick to deny any insinuations to that effect
and says that Rockport is for a comparatively older customer set and for those who pick up a brand
for the self-goodness factor. In 2009, reebok paired up with Franchise India in order to renovate its
current franchise business as well as to enter in to the growing market of Tier II and Tier III cities of
India. So what’s Reebok Indias next move? The next move of reebok in words of its CEO "India is
changing and there is so much to work on, like the way mobile has evolved from a communication
device to a fashion accessory, we want to bring a huge change to our industry." replies Prem. The
focus of Reebok is in the area of women’s fitness. As per company analysis the female consumer is
not owned by anybody yet and they see an opportunity there. Also the company is working on
mens fitness and training. And they will try and get close to the most popular sport according to the
regions where they operate. The company is looking at cleaning up the business and getting our
distribution right. Along with marketing and innovative products they need to have the right
ammunition to execute our strategy.
 Page 16 of 32

Reebok’s Fitness Culture and Positioning:

Reebok created Reebok core training and the Reebok core board based on a breakthroughtraining
technology and consumer market research. By synthesizing the intrinsic humanneed for self
improvement and feeling good with the functional needs of improved strengthand performance for
an active lifestyle, Reebok endeavored to redefine sports and fitness.

Reebok’s goal was to communicate the key benefits to consumers globally. This targeted approach
would ensure deep penetration and allow Reebok to create the necessary “forestfires” to
successfully drive Reebok core training nationally and globally.

Reebok Product Development Strategy

Reebok decided to externalize most of the product development, manufacturing and distribution
value chain activities. Reebok would utilize the strength of strategic alliance partners to develop
product and support club and retail distribution as well as the sales and some trade marketing for
the Reebok core boards and programming. Reebok would focus internal resources on the
marketing activities related to health clubs and consumer retail that would allow it to strategically
align with footwear and apparel marketing goals and enable it to leverage existing fitness assets.

The following illustrates some of the key research findings that helped shape the product design
formulation and product marketing strategies.

Consumer Market Research: Reebok conducted market research with US and international market
consumers, fitness professionals and health clubs.

Some of the highlights were:

CONSUMER TARGET 18-39 fitness enthusiast (male & female)

KEY INFLUENCERS Fitness Professionals Sports Rehab/Physical Therapists Athletic Trainers

Coaches/Teams

Core Training Program

• Build program to emphasize strength training as key element for a total body workout

• Offer short (15 -30 minute) executions of Core Training classes to induce trial and appeal to men

• Train instructors to incorporate strength training into Core Board use

Marketing Challenges

Reebok had some time back hired an international agency to help it identify locations for its stores
on the basis of income pockets. The agency devised a plan that looked good on paper: Divide each
city according to the postal codes. The assumption was that people covered by one post office
would have somewhat similar incomes. Within no time it was proved that the formula will not
 Page 17 of 32

work. The Greater Kailash post office in New Delhi, for instance, is a high-income neighborhood but
also includes the mid-income locality of Zamroodpur. Should Reebok then put up a store there or
not? What products should it stock? For Reebok, the country’s largest seller of sportswear and
apparel, it has to wrestle with this challenge every day. It wants to become a mass-market brand,
and the location of stores holds the key to that. This is not the first time that its market research
and assumptions have gone awry. When it first entered India in the early-1990s, it had assumed
that every car owner could be a potential buyer for expensive Reebok sneakers. It proved to be a
gross overestimation of the market’s potential. Little did it realise that cars were bought on
installments here, and a large number of drivers didn’t own the cars — these were provided by the
office. But it has got over the initial hiccups. Though fourth in the global sweepstakes after Adidas,
Nike and Puma, it leads the pack in India with a 53 per cent share of the branded sports footwear
market (estimated size: Rs 3,500 crores per annum).

Mass vs class

Detractors and competitors, however, say that the company’s strategy may take the sheen off the
brand. "You can’t be a prestigious brand and at the same time sell it for under Rs 1,000. Also you
will compromise on quality and these shoes are known for their performance. You can’t be both a
mass as well as a class brand," says a rival. Reebok is aware of the challenge. One way to overcome
it is to segment the market, and have sub-brands for each segment. For instance, Reebok has
created a segment for health- and figure-conscious women. It has launched Easy tone footwear
which promises to help tone the legs and butt. These are, of course, global products launched
recently and available at a stiff price starting from Rs 4,999. Similarly, to cater to the fashion-
conscious, Reebok has tied up with designer Manish Arora for the Fish Fry range. It’s a small market
but if offers a style statement and that gives the brand an extra dimension. Reebok recently found
that people above the age of 60 prefer to use sandals in their morning walk with friends. The
company caught on to the potential when he saw his father and his friends not using sports shoes
while walking in the morning. For the mass market, Reebok has bonded well with cricket. It has set
up exclusive cricket stores which stock pads, wickets and other cricketing gear. It has extended its
sponsorship with Kolkata Knight Riders by opening an exclusive store in Kolkata which sells KKR
merchandise. As many as nine players in the Indian cricket team use a Reebok bat. It has benefitted
from tying up with cricketers much before they become stars.

Price barriers

The biggest challenge in front of company is to produce quality products at even lower prices and
break the existing price barrier. The company has brought down its entry level price from around Rs
1,390 a few years ago to Rs 990 now. And, of course, Reebok’s research and development centre
abroad are working to break new price barriers. For that, company is also experimenting with new
mediums which will supplement his already large advertising budgets. The focus now is to leverage
social websites and offer consumers knowledge about its products. One idea which has been
floated is to set up Reebok Clubs across websites were people can exchange notes on fitness and
Reebok products, and give their independent opinion. The company feels it can extract more value
 Page 18 of 32

this way than from an advertising campaign. But different markets and segments have different
requirements and aspirations from a sportswear or lifestyle brand. So how does Reebok cater to
the varying choices? Data shows that consumers are changing their old pair of shoes much faster
than before. Middle-class buyers now change their footwear every three months, down from eight
to 12 months earlier. And at the lower end of the market, consumers are changing once in every 15
months compared to three years earlier. "The customer who buys entry-level Rs-990 shoe upgrades
to the next level just like you upgrade your car. And as he is already hooked on to Reebok; so, his
next shoe will also be the same brand, provided of course we offer him wide variety and a new
offering at every level and price point," say she. So Reebok launches over 42 SKUs every month and
at least new footwear technology every two months.

SUPPLY CHAIN

The majority of Reebok products are manufactured in approximately 724independently-owned and

operated factories around the world. Thesefactories employ more than half a million workers.A factory is
defined as a manufacturing facility that: cuts, sews, screen-prints, embroiders dyes, outsole
placement/injection, stock-fits, andwashes, assembles, or packages at a primary or subcontract facility.

Supply chain of Reebok

HOT MARKET DEMAND NORMAL DEMAND
Raw material suppliers
2-16 weeks

Contract manufacturers

4-8 weeks

Reebok warehouse

1-2 weeks or less

3-12 weeks
Retail DC

1 weeks
Retail outlets

consumers

SUPPLIER RELATIONSHIPS

There are three main types of commercial relationships:

Direct relationships with contract factories

 Page 19 of 32

We contract directly with some factories. These direct relationships account for 28% of apparel and95% of
footwear production by volume/spend. These factories are often part of a large company with factories in
several locations. 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 our approval. Most of our
apparel manufacturing in Asia is purchased through agents. In footwear manufacturing most orders are
placed directly, but we also work with three agents.

Subcontract factories

Occasionally factories may subcontract parts of anorder to another factory.

Reebok has classified its retail stores in following three categories

A store

deals with new products and normally these stores do not provideany discount on products as the products
are new in market. In IndiaReebok is having 30 % of A type stores.

B store

deals with only old products which they get from the franchiseesafter a poor demand of these products. B
stores sales those products on ahigher discount rate. Reebok is having 10 % of B stores in India.

A plus B store

deals with both new and old products, thus it is acombination of A and B. in India Reebok is having 60% A
plus B stores.

WHERE ARE OUR SUPPLIERS?

Footwear

Reebok uses footwear factories in 14 countries. Most factoriesmaking Reebok footwear are based in Asia—
primarily China (accountingfor 51% of total footwear production), Indonesia (21%), Vietnam (17%)and
Thailand (7%). Production is consolidated, with 88% of Reebok footwear manufactured in 11 factories,
employing over 75,000 workers.

Apparel

Our apparel supply chain is larger, with factories in 45countries. The process of purchasing products from
suppliers is organized by region. Most (52%) of our apparel sold in the US is produced in Asia,with the rest
coming from countries in the Caribbean, North America,Africa and the Middle East. Apparel sold in Europe is
typically sourcedfrom Asia and Europe. Apparel sold in the Asia Pacific region is typicallyproduced by Asian-
based manufacturers.

Reebok Distribution Strategy

 Page 20 of 32

International distribution activities (board sales, inventory risk, fulfillment and partial marketing for both
home and club segments) of the Reebok Core board would be performed by the current Reebok home and
club equipment distributors in their respective markets. Reebok equipment distributors would align and
integrate with the local Reebok footwear and apparel distributor to create a synergistic effort supporting the
Reebok Core marketing initiative. Reebok US would support and develop global collateral materials for hand-
off packages to international markets to ensure brand and message consistency. New media creative and
production would be US based, but local market adaptations would be made. The Reebok core board retail
distribution strategy would be focused on Reebok’s strategically important key sporting goods retailers.
Reebok was seeking a higher penetration of its footwear and apparel in this distribution channel and viewed
the core board initiative as away to leverage additional footwear and apparel placement. This logic
presumed that the Reebok core board would become the next Reebok Step and key sporting goods retailers
would make it a “Must Have” hot retail fitness product. The targeted sporting goods retailers were aligned
with the 20 city launch tour in Q1 2001 in order to optimize impact while helping to ensure that a critical
mass of awareness and demand had been created to drive retail sell through in key markets at the selected
retailer rooftops. Additional launch tours were being planned for European, Asian and South American
markets.

The company has 100 exclusive stores spread across India and also has a retail presence from 2500 multi-
brand stores. The brand has been adding one store each week and also has an ambitious plan to open a
store every 72 hours. The brand also leverages the strong distribution network of Adidas in the major cities
of India. The brand has also taken advantage of the online stores and has an organized web system that
handles the distribution of the products. The brand has also merged with other online stores to sell its
produ cts.
Brand equity of Reebok

In the year 2017, it obtained the status of the most valuable brand and has acquired a very high brand value
of $1.2 billion. The brand has been doing well in the market and speaks of elegance and style in sports.

The innovative campaigns and product portfolio has helped build the identity of the brand. It has a unique
identity, designs, reputation, and heritage. The brand has helped Adidas drive its future sales growth and
improvement of profits.

The products of Reebok has a tough look, representing the extreme lifestyle. The entire brand architecture
of Reebok has revolved around inspiring new heights of achievement for the consumers and for the brand
itself.

Market analysis :

Reebok has implied a strategy to have a tie-up with many channels across India to promote its product at
different levels, this has helped Reebok improve its market share in the urban and rural India.

Reebok has been expanding its price ranges, product variety, geographical presence and also the promotion
channels. The key markets of Reebok are the Asia Pacific which includes countries like korea, Japan, Hong
Kong, Australia, China and India
 Page 21 of 32

The consumers love for sports is moving beyond cricket in India with the emergence of tennis, badminton,
football as well as yoga and CrossFit. Sports apparel and equipment is said to become the next big industry
by 2025. India’s market is doing very well with the growing economy and increasing disposable income.
Reebok can have a first mover’s advantage with terms of a brand whose sole focus is fitness.

Customer analysis :

Reebok has always claimed itself to be a customer-focused brand. To make the customer’s shopping
experience smoother, it has its products displayed in different categories for ‘Walking’, ‘Aerobics’, ’tennis’
‘cricket’, ‘CrossFit’, ‘Boxing’ etc. the main target customers of Reebok are women. It is a single place for all
the equipment needed for Combat Training.

The brand is targeting more specific customers who are into CrossFit, Martial Arts, etc. and creating a point
of differentiation. This has helped Reebok gain a different set of customers that are unique from Adidas and
Nike.

New Innovations of Reebok

REEBOK ZIGTECH SHOE TECHNOLOGY in 2010

Reebok's ZigTech technology is designed to conserve and return energy to the athlete for a soft and springy
ride. The one-of-a-kind ZigTech bottom unit features an innovative, lightweight foam that is engineered into
a dramatic, geometric, zig-zag shape. This unique zig-shaped sole absorbs the impact of heel strike and sends
a wave of energy along the length of the shoe propelling the athlete forward with each step. The launch of
ZigTech, the brand's most technically advanced running and training shoe. ZigTech technology reduces wear
and tear in key leg muscles by up to 20% allowing you to train harder for longer. Simply put, it's an energy
drink for your feet. The shoes are very light; no more than 12 ounces (340 grams) each. The true secret of
the shoe is actually the zig-zag base from which the name of the shoe derives. The squiggly foam, according

to many shaped to resemble a heartbeat monitor, is light and flexible which allows for great amortization
and support. The shoes also have a distinct springiness which becomes more and more noticeable as the
runner increases his speed. This is because each part of the foam acts independently, allowing for smooth
absorption of the impact.
Page 22 of 32
 Page 23 of 32

Benefits behind the Technology

Reebok’s newest technology implemented in the ZigTech training shoe gives a wide range of benefits to the
user:

1. Upon impact with a surface, energy is sent from heel to toe and up to the body allowing the return of
some energy lost during the contact with the ground. Many people have stated that the with each step the
shoe feels like it’s accelerating and propelling the user forward.

2. The ZigTech reduces the tearing and wearing of important leg muscles by up to 20%, at the same time
minimizing chances of damage or injury

3. The stable heel and the soft base provide a strong frame that firmly fits your foot. The shoe is set to rap
itself around the foot of the user, fitting it with great precision.

4. Upon exercising, the flexible foam smoothly reacts with the ground. Each part bends independently to fit
the irregularities in the surface, providing an even run.

5. The shoes have been said to be very breathable which is quite useful; the feet do not get as sweaty and
the ZigTechs are much more comfortable. This trait can also prevent a variety of blisters or burns from
forming on your feet, something that can really effect the running form of regular runners.

REEBOK INTRODUCES NEW LIQUID FACTORY on 20th October 2016

Reebok introduces Liquid Factory – a ground-breaking manufacturing innovation that could fundamentally
change the process and speed of footwear creation. Developed by the Reebok Future team, the Liquid
Factory process uses state-of-the-art software and robotics to literally draw shoes in three dimensions. The
new technique leverages 3D Drawing, where a proprietary liquid material, created especially for Reebok by
BASF, is used to draw shoe componentry cleanly, precisely and in three-dimensional layers. This proprietary
layering technique is used to create totally unique footwear, without the use of traditional molds. this next
generation of footwear manufacturing allows the fitness brand to design and create a high performance
athletic shoe faster and more efficiently than ever before.
 Page 24 of 32

With this new process, we were able to program robots to create the entire shoe outsole, without molds, by
drawing in layers with a high-energy liquid material to create the first ever energy-return outsole, which
performs dramatically better than a typical rubber outsole. The all new Liquid Factory process is also used to
create a unique fit system that stretches and molds around the foot, providing a three dimensional fit.”

Liquid Speed is an energy return-focused running shoe that also brings the outsole and lacing together in
one piece for a comprehensive feel and sensory feedback for the entire foot. Reebok is releasing the Liquid
Speed with a limited edition 300 pair production run. Each of the 300 pairs is individually numbered, tagged
and boxed. The Liquid Speed shoe was designed and assembled in the USA and created with a three-way
collaboration between Reebok, BASF and RAMPF Group in Wixom, MI. Final assembly for the Liquid Speed
shoe took place at Reebok Headquarters in Canton, MA.

Reebok Launches New Cushioning Technology: Floatride Foam in 2017

Reebok launched the Reebok Floatride Run, which is their “most technically-advanced running shoe to
date” and provides ultimate comfort and performance for runners everywhere. It took a while for the
company to produce their latest running shoe venture in order to create their lightweight technology that
apparently helps runner “float” during their run. Reebok’s Floatride Foam is engineered to be pressure set
in order to have a cell structure that’s consistent, giving it a feel of softness and responsiveness during a
run. The company aimed to make runners feel comfortable while at the same time, push for high-level
running performance.

For the appearance, the Floatride Run has an Ultraknit upper to provide support and flexibility, making sure
that their release would make runners look and feel good at the same time. According to Reebok, the
Floatride “allows the wearer to look as distinctive during their run as the shoe’s unique technology will make
them feel.”

Key Features

The Floatride Run has the following features that Reebok put on their latest release to cement its status as a
premium performance running shoe:
 Page 25 of 32

 Floatride Foam: Floatride Foam has a cell structure that provides consistency and delivers seamless
cushioning and responsiveness.
 Ultraknit Upper: The Ultraknit is a seamless upper construction that has been designed to provide
adaptive comfort that still gives support and breathability.
 EVA Support Rim: This is a supportive foam rim that keeps the foot centered and balanced during
the gait cycle.

Reebok Releases New Sneakers With Sustainable Soles Made From Corn in 2017

Reebok has launched its “Cotton + Corn” sustainable products initiative. “With Cotton + Corn, we’re focused
on all three phases of the product lifecycle. First, with product development we’re using materials that grow
and can be replenished, rather than the petroleum-based materials commonly used today. Second, when
the product hits the market we know our consumers don’t want to sacrifice on how sneakers look and
perform. Finally, we care about what happens to the shoes when people are done with them. So, we’ve
focused on plant-based materials such as corn and cotton at the beginning, and compostability in the end.

“Ultimately, our goal is to create a broad selection of bio-based footwear that can be composted after use,”
McInnis continued. “We’ll then use that compost as part of the soil to grow the materials for the next range
of shoes. We want to take the entire cycle into account; to go from dust to dust.”

For the Cotton + Corn initiative, Reebok partnered with DuPont Tate & Lyle Bio Products, a leading
manufacturer of high-performance bio-based solutions. DuPont Tate & Lyle has
developed Susterra® propanediol – a pure, petroleum-free, non-toxic, 100% USDA-certified bio-based
product, derived from field corn. Susterra® propanediol is used to create the sole of the Cotton + Corn shoes.

“Reebok’s philosophy is to ‘Be More Human,’ and sustainability is a core part of that belief. As human
beings, we have a responsibility to leave this planet as we found it for future generations,” said Reebok
president Matt O’Toole. “Unfortunately, the fact is most shoes just end up in landfills, which is something
we are trying to change. As a brand, we will be focusing on sustainability with the Cotton + Corn program as
well as other initiatives we have in the works.”
 Page 26 of 32

Reebok’s New Flexweave Technology Expands the Future of Footwear & Prototypes in 2018

Reebok wants to dominate the fitness landscape. And its latest effort in athletics is focused on the hardcore
runner. The new innovative material, according to Reebok, features a figure eight weave to give the upper
flexibility, durability, lightness and an exceptional fit. The Fast Flexweave is the first runner to feature the
material. Aside from the upper tech, the shoe cushioning uses pressure mapping technology for flexibility
and stability, as well as tailored Flexweave zones for forefoot flexibility and breathability.

Flexweave “boasts an open figure-8 construction that interlocks unlimited strands of fibers to create a single
surface construction that is as strong as it is light.” Here, Joe Doucet x Partners, Modla, and Odd Matter each
worked with the version of the textile that will be found in the first generation of Reebok Flexweave
footwear which is set to launch this year.

Centering around form and function, the prototype collection thus includes a pair of cutting-edge running
gloves by Joe Doucet x Partners, Modla’s 3D-printed altitude training mask, and an assortment of
lightweight, active sitting chairs from Odd Matter. It’s strong and durable, so perfect for a product that will
get a lot of wear and tear; while also incredibly lightweight, making it breathable on the face for athletes
when training.”
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Global Challenges:

Over the first three years of the launch, Reebok and its strategic alliance partner’s expenditures globally on
the product launch and subsequent marketing efforts were in the millions. However, the diffusion and
adoption of the product by health clubs had been much slower than expected. Other group exercise
modalities such as spinning and taebo were crowding the group exercise schedule in clubs and limiting the
presence of the new Reebok Core Training classes. In addition, each core board had to be stored in the
studio and occupied precious space otherwise used for additional class participants. This was causing club
equipments buyers to think twice about bringing in a new training program that required additional
hardware. Additionally, clubs were dealing with delayed delivery of the Reebok core boards from the US
manufacturing supplier and quality issues that would impact their ability to offer Reebok core classes at their
clubs. Although enthusiastically embraced at the key trade shows and by fitness instructors & trainers and
fitness class participants, the Reebok core board and related training program for health clubs growth rate
was disappointing. Subsequent research indicated that while the product itself was innovative and well
received, fitness instructors were having some difficulty creatively iterating the base programming received
from Reebok (aka creating new, fresh class workout routines from the original programming and training
they received from Reebok’s training unit, Reebok University- this was a staple of the Reebok Step success-
fresh, easy to evolve Reebok Step programs were constantly developed every few months and passed on to
instructors so instructors could introduce their own creative slant on the programming for their specific
classes- Fresh programming-workout routines were critical to the further development of the Reebok Step
fitness experience) Additional feedback also indicated that instructors had a more difficult time teaching
functional stability/core training as a concept (verses a simple aerobics and cardiovascular concept like the
Reebok Step) to their classes due to more complex physiologic principles and movements involved. This also
typically required a more highly qualified instructor with an exercise physiology background.
 Page 28 of 32

FACTORY LIST
 Page 29 of 32

Volume of purchase (for all members)

Volume of purchase is mainly depends on demand forecasted for the given period of time. Demand
for shoes varies from store to due to the factors influence the demand like location, sales persons,
and store ambiance etc. Usually Franchisees owners purchase 10 to 20 percent more than the
projected demand for the shoes. Quantity purchase is also influenced by the funds available to the
store owner.

Demand forecasting methods

Reebok use time series forecasting method for forecast the future demand. In time series
forecasting method they use exponential smoothing method to see the effect of other factors on
demand. The exponential smoothing is an averaging method that reacts more strongly to recent
changes in demand by assigning a smoothing constantto the most recent data more strongly; useful
if recent changes in data are the results of actual change (e.g., seasonal pattern) instead of just
random fluctuations. Demand forecasting for the franchisees done by the Reebok India ltd bythe
above method.

Stock replenishment cycle and methods

Stock is purchased on the basis of demand forecasted for the given season. As the Reebok
distributors’ warehouses are not so far from the store in Delhi, it takes less time to transport the
goods to stores so the store owners maintain the inventory as convenient to them.

Budget allocation

Reebok allocates a big amount to its advertisement campaign because there is strong competition
with Nike and puma. Reebok is a well known global brand and on the way to achieve the highest
position in sport shoes industry. Reebok spends about $215 million in its advertisements. Reebok
spends 22% in TV broadcast, 20% on news paper, 5% on internet, 8% 0n radio, 12% customer
magazine, 15% direct mail, 8% on yellow pages, 4% business publication, 6%on others of its
promotional budget.

How goods are transported between the supply chains

In supply chain the retailer order the required quantity to the distributor and it is the responsibility
of distributor to transport the product to thestore location. But when distributors purchase the
stock from Reebok India ltd it is again responsibility of distributors to transport the stock from
Reebok warehouse to own warehouse or store.

Total sales and profits from shoes

Total sale of shoe for a month varies from 3.5 lacks to 6 lacks. A franchise owner of Reebok gets 20
percent of profit on M.R.P. of the shoes. In this 20percentage he can offer 5% to the customer at
the time of bargaining to make the sale. So a shoes pair of 6000 M.R.P. he gets in4800.After paying
 Page 30 of 32

the expenses of stores like electricity bill, sales persons salary etc remaining is the net profit for the
store owner. Thus the net profit for the owner varies from 38,000 to 65,000 per month.

Reebok SWOT Analysis

Reebok SWOT Analysis

Strengths 1. Reebok is amongst the largest seller of athletic footwear and athletic
apparel in the world.
2. Reebok brings out the perfect combination of technology and fitness
each year in its products.
3. Products are made not only in the premium range but also in mid-range.
4. The Reebok value store targets lower income groups thus categorizing its
products for each class of society.
5. The brand has been endorsed by many sports stars and movie celebs
globally
6. Reebok operates through a network of department stores, sporting
goods, specialty retailers, company-owned stores, licensees thus having a
better reach.
7. Reebok sponsors international teams, clubs, players from all sports like
football, cricket, basketball, motorsport, etc
8. Excellent advertising and branding make it a popular brand
9. Reebok has its business spread in more than 80 countries, along with
Adidas
Weaknesses 1. Reebok faces tough problem from fake and duplicate sales
2. Being a popular brand means any controversy affects brand image
considerably
 Page 31 of 32

Opportunities 1. Reebok can expand more in the kids section

2. Lifestyle section can be expanded and can be given more focus.
3. More tie-ups with sports academies and schools worldwide
4. Tapping the growing interest of sports in emerging economies can be
targeted by Reebok

Threats 1. Competition by international brands means limited market share from

Reebok
2. Fluctuating international currencies can mean losses to the company
3. Fake imitations can cause loss to the brand
4. Cannibalization with Adidas brand can also affect Reebok's business
 Page 32 of 32

https://www.mbaskool.com/brandguide/lifestyle-and-retail/4084-reebok.html

https://www.marketing91.com/marketing-mix-reebok/

https://www.mbaskool.com/marketing-mix/products/17578-reebok.html

https://www.uniassignment.com/essay-samples/marketing/the-marketing-strategy-of-reebok-marketing-
essay.php

https://www.mainlinemenswear.co.uk/blog/2017/history-reebok-footwear

https://www.reebok.ca/en/customer-service-company_information.html

https://moneyinc.com/reebok/