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REEBOK S OVERVIEW

Reeboks principal business activity is to design, development & worldwide marketing of high quality footwear, apparel & equipment. Reebok is 3rd largest seller of athletic footwear and athletic apparel in the world. 2004 Annual Sales = $4 billion Reebok India commands a 51% market share in the premium sports wear industry . Over 500 exclusive Reebok Stores, 200 Shop in the shop outlets & 2500 dealer outlets.

HISTORY

Reebok's United Kingdom-based ancestor company for athletes those wanted to run fast. In 1958, two of the founder's grandsons started a companion company that came to be known as Reebok, named for an African gazelle. Reebok started its operations in India in 1995. Reebok was the first multinational footwear company to enter India after the liberalization of the country's economy and post profits

MISSION STATEMENT

At Reebok , we see the world a little differently and throughout our history have made our mark when weve had the courage to challenge convention . Reebok creates products and marketing programs that reflect the brands unlimited creative potential. ."

PROPOSED MISSION STATEMENT


To continue to offer quality products with increasing growth in
the industry and expanding globally. Our mission has always been to provide a competitive edge by developing the most technological products. Keeping in mind fair labor practices in all our suppliers factories, while maintaining a competitive advantage, with the shareholders interests, and company profits in mind. We also believe our employees are one of our most important assets. To increase the responsibility towards the environment by evaluating the impact of day to day operation and attempts to change operations that have a negative impact.

REEBOK FINANCIALS
2004 Annual Sales = $4 billion An improving financial performance for the last five years:

Five consecutive years of earnings improvement. Compounded annual growth rate of 23.4%. Returned $226 million to shareholders in the form of dividends and share repurchases We have generated $900 million of operating cash flow. Our share price increased more than 400% and during the past year it outperformed the S&P 500 for the fifth consecutive year. Cash position at December 31, 2004, $565 million On August 3, 2005 Reebok agreed to be purchased by Adidas for $59 a share a 34% premium.

ATHLETIC SHOE MARKET SHARE

REEBOK BACKGROUND
Multiple Brands
Variety of Product Types Multiple Retail Channels

 Footwear, apparel, fitness equipment, licensed watches, bottled water, etc  Products may be merchandised as collections or assortments requiring coordinated delivery  Products may require special fixtures or collateral promotion material like posters, print ads, and store signage

 Department stores  Sporting goods  Specialty retailers  Company-owned stores  Licensees  Wholly-owned, international Subsidiaries and distributors  Sales in 140 countries
 Internet

COMPETITIVE PROFILE MATRIX (CPM)

PRODUCTS

EXTERNAL OPPORTUNITIES AND THREATS


OPPORTUNITIES: Established objectives Result-oriented culture Strengthen management team Relevant advertising and marketing campaigns Grow quality market share Restructured production creation teams The Sounds and Rhythm of Sport. fashion consumers National Football League campaign Changed leadership for difficult brands

THREATS: Strong US dollar Weak department store channel Foreign market is suffering Economic decline in key markets Chinese products Strong Competition

INTERNAL

STRENGTHS AND

WEAKNESSES
STRENGTHS:

WEAKNESSES:

Teams more connected to the consumer Multi-brand strategy Dedication to employees Hydro mover moisture technology DMX technology. 4 major divisions & 6 SBUs Advertisement campaign

Rely on retail stores to sell products Issues with foot lockers Poor employment practices at their international manufacturing sites Heavy dependency on footwear sales

RECOMMENDATIONS
Reebok is basically internally strong organization with lazy management team However

It develop a more detailed plan grow sales. Reliance on department store channels Suffering foreign markets Find markets that are not in an economic decline Strengthen the brand name and message of suffering brands Need strong goals and plan to grow the sales & global reputation By changing advertising agencies frequently, Reebok has dug themselves in a marketing hole. To accomplish their current goals they need to produce better marketing campaigns. Change Management

CONCLUSION

Focus on finding the most promising customers (kids and women) and introduce more products or improve current ones to satisfy potential increase in demand Keep expanding into current and future foreign markets by being aggressive and the worldwide leader of the footwear industry Accelerate funding for numerous marketing campaigns in order to get to specific markets or customer groups Focus on improving working conditions and human rights at international manufacturer centers and at the same time increasing their productivity Implement product diversification with companys newest technologies .

REFERENCES

http://finance.yahoo.com Reebok Annual Reports Reebok Quarterly Reports www.rbkindia.com www.reebok.com www.bigcharts.com www.businessweek.com www.wikkipedia.org

PRESENTED BY

Bhavin

Patel Spandan Sunakshi Sitesh Smarak Pradhan