How to improve the

brand image of Reebok in

India facing competition
from Nike(Repositioning)

1:

Companies situation
analysis

Reebok International Limitedis a producer and

brand ofathletic shoes,clothing, and accessories.It
came to India in the mid-90s primarily to develop the
middle segment of footwear market.
Founded by J.W. Fosters
CEO-Uli Becker
The company is retailing from almost 750 exclusive
stores. It also retails from 2 thousand multi-brand
Reebok headquarters in
outlets.

Canton,Massachusetts,
U.S.

Reebok started making

profits in 1999 and was
one of the first MNCs
that posted profits post
liberalisation.

Other some objctives are

1.To Empower Global
Youth to Fulfil their
Potential.
2. Celebrate Individuality
in Sport and Life
3. Having Fun Staying in
Shape.

The strategy was to leverage the

appeal of Reebok's world famous
athletes and use them to promote
Reebok's image as the brand for
serious athletes. Athletes in key
sports sectors were chosen.

Athlete Promotions is here to help you book the

sports celebrity of your choice.
Reebok India took Indian cricket stars like
Mahendra Singh Dhoni, Rahul Dravid , Yuvraj
sing .Bipasha Basu is also endorsed for the brand
promotion.

NIKE
REEBOK

sponser -the most

popularathletesand teams.
50% shares in basketball, 80%
shares in cleated shoes
Endorse Michael Jordan, Pete
Sampras
Just Do It theme

Swoosh logo

sponsors big events and

organisations.
15% shares in basketball , <
20% shares in cleated shoes
Endorse Shaquille Oneal,
Michael Chang
Planet Reebok theme
V logo

Reebok India has bagged the

prestigious Subsidiary of the
Year award many times.
In August 2004, AdidasSalomon acquired Reebok in
USD 3.8 billion

STAGE 2
STRATEGIC 4P
ANALYSIS

1.PRODUCT STRATEGY

Reebok is an
American-inspired
global brand,
starting with fitness
as the backbone for
the brand's global
positioning.They
aspire to make their
consumers "Fit for
Life"(e.g. flexibility
or lightweight).

REEBOK PRODUCTS

2.PRICING STRATEGY

Main aim is to survive

and grow in the market.

Starts with high prices

and then slowly drop
prices over time.

Earn more profit and

communicate to buyers
with high price that the
product is superior.

Usually follows skimming

strategy and then later it
followed penetrating
strategy.

Reebok came up with destroyer pricing strategy and set deliberately

very low prices hoping that the competitors cannot match it.

3.PROMOTION MIX STRATEGY

ADVERTISING
2004-2007,Mc Garry BowenReeboks brand agency globally.
PUMP

SNEAKERS ads-Two
people in everyone ad
campaign.

RUNNERS

HEAD GAME-I am
what I am campaign.
In 2009 it changed to DDB
Advertising Agency worldwide.

Ad

campaign-Your Move,to
establish its brand in the
womens fitness market.

SALES PROMOTION

Short term incentive to

encourage the
customer to purchase
or buy good and
services.

Offers great deals on

footwear,apparel,and
fitness equipment for
women,men,and kids.

Offers
discounts,vouchers,cou
pons and custom made
sneakers on their
products

4.PLACE (DISTRIBUTION)
In

2009,integrated with the

largest integrated franchise
and retail solution providerFRANCHISE INDIA HOLDINGS
LIMITED (FIHL).

Enjoys

almost total brand

recall in the country.

It

has over 1000 stores in

over 325 cities and towns
across the country which is
more than double of any of
its rivals.

PLACE

Offers over 80 stockkeeping units under

Rs.2,590 which form the
bulk of its sales.

Developed its own

yardstick:any location
which has a population of
10,000 to 15,000 can
sustain a Reebok
store,especially if it is a
service hub.

95% of the time Reebok is

successful while launching
the store.

STAGE 3:
Strategic Marketing &
Consumer analysis

Stage 3: Strategic Marketing &

consumer analysis

Past trend late 1990s-2008

Current Market scenario

ESTIMATE MARKET FOR 3 YRS

Reebok Continues to
Toughen Up Its Image
with New UFC
Partnership. Reebok
estimates that there
are 35 million people
training in combat
sports around the
globe.

SEGMENTING:
Age segments:
Teenagers are more than 32% of total sales
Gender segments:
Men segment buys more but Women segment has
higher growth
Price segments:
62% of sneakers cost less than $50
Sports segments:
Running shoes are #1 (29%) sales, basketball shoes
#2 (21%), cross trainers #3, (13%). Basketball shoes
sales increasing, cross trainers declining slightly.
Lifestyle segments:
75% of sales are for casual, non-athletic use.
Athletic shoes are more profitable with prices rising
dramatically.

POSITIONING:
Toreinforceitspositionasapr
emiumsportsandlifestylebra
nd,Reeboksgoalisto
significantly improve and
increase its product offering at
high and mid-price points to
drivegrowthinaverageselling.

TARGETING:

Reebok target customers are

kids, youth, women and men.
Reebok mission is to make
fitness fun again for women. The
tagline I am what I am became
a promise to the consumer that
Reebok was a brand that enabled
self-expression

STAGE 4
STRATEGIC COMPETITION
ANALYSIS

MAJOR PLAYERS

MARKET SHARE

FOCUS

Challenge and lead the fitness world

through creativity.

Creates products and marketing

programs that reflect the brand's
unlimited creative potential.

Unlike many other brands, Reebok is

committed to making fitness
aspirational and fun again by
providing consumers with
experiences, products and the
inspiration to be Fit for Life. By
creating inspiring product and brand
experiences.

PORTERS 5 FORCES
ANALYSIS

BARGAINING POWER OF
SUPPLIERS

Large number of substitute inputs.

Inputs have little impacts on costs.

Diverse distribution channel.

BARGAINING POWER OF CUSTOMERS

Limited

Large

buyers choice.

number of customers

THREAT OF SUBSTITUTES
Substantial

Limited

product differentiation

number of substitutes.

INTENSITY OF EXISTING RIVALRY

Relatively

few competitors

THREAT OF NEW COMPETITORS

High capital requirement.

Strong brand names are important.

 Industry

requires economies of scale.

Customers

are loyal to existing brands

Stage

Strategic Customer Analysis

Segment Customer Groups

How to make customers

Aware

A certain store in the US of its monthly

Sales

Stage 6
Strategic Recommendations

Market-product Strategies
Promotion Mix
Brand Promotions
Customer Loyalty
HR Development

Presented by:
Anamika
Kajol
Hersh