REEBOK

Reebok is an international brand that sells sports and lifestyle products. It

came to India in the mid-90s primarily to develop the middle segment of
footwear market. Reebok was the first among the big three to identify India as
a huge emerging market and a base for global exports.
It's more than 15 years in 2010 that Reebok has established its brand
throughout India. The first three years in India were very difficult for Reebok to
figure out the right marketing mix. Reebok started making profits in 1999 and
was one of the first MNCs that posted profits post liberalisation. When Reebok
entered into India, fitness was a very nascent industry and people used to buy
branded shoes only for image, fashion and comfort.
15 years ago, In Reeboks target segment only one in ten was indulged in any
physical activity, however now seven out of ten people indulge in some kind of
physical activity. Consumers has also started recognizing value for money
products and are willing to shell out more for the product they want.
Reebok also invited visitors from abroad to share fitness perspective and
conduct the Reebok Resolution with the Indian fitness fraternity at large. It is
not only instrumental in redefining the attitude of fitness in India but also
increasingly made it a career choice for many people.
VISION: Fulfilling Potential
Reebok India Company 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 weve had the courage to challenge convention. Reebok
creates products and marketing programs that reflect the brands unlimited
creative potential.
Reebok India is looking for expansion in different parts of India with the help of
a unique retail franchise concept which will benefit both the investors and the
company as a whole. Our franchise concept ensures high return on
investment and full support from the company to make the franchise outlet
popular. If interested, do contact us as soon as possible.

Type of Industry
Reebok is a global athletic footwear and apparel company.[1] Reebok
produces and distributes fitness and sports items including shoes,
workout clothing and accessories, and training equipment. Reebok is
the official footwear and apparel sponsor for UFC, CrossFit, Spartan
Race, and Les Mills.[2]
History
In 1958, two of the founder's grandsons started a companion company that
came to be known as Reebok, named for an African gazelle. A Gazelle
Named Reebok, A Company on the Move in the 1890s, Joseph William
Foster made some of the first known running shoes with spikes in them.
Reebok began a transition from a company identified principally with fitness
and exercise to one equally involved in sports. In 1986, Reebok made its
first strategic acquisition, The Rockport Company. By 1981, Reebok's sales
exceeded $1.5 million.
Reebok launched ZigTech, designed to conserve and return energy to the
athlete for a soft and springy ride. In January 2006, adidas-Salomon AG
acquired Reebok, forever altering the worldwide sporting goods industry
landscape.

PRESENT SCENARIO
Reebok launched Rbk Hockey, a new and innovative line of ultra-high
performance hockey equipment. Reebok formed a long-term strategic
partnership with the National Basketball Association. Reebok and the
National Football League announced an exclusive partnership that serves
as a foundation of the NFLs consumer products business.
In the news -Reebok Hires Lancaster MBAs To Work On New Branding
Strategy. Reebok Indias ex-MD, COO Bhagat arrested for fraud. Reebok
also launched RealFlex. Reebok also announced its long-term partnership
with producer, artist and designer Swizz Beatz. In 2011, Reebok formed a
long-term alliance with one of the biggest fitness movements of our time,
CrossFit.

Reebok Marketing Strategy

Ever since it established its presence in India in 1995, 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. Reebok's 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 was an
international brand 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 Reebok's 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 has been adding a store a week, for the next year
the company has lined up even more ambitious plans to open a
store every 72 hours. Reeboks biggest investment has been in the
field of marketing infrastructure, creating an international and
uniform retail ambience in all their exclusive stores. A functional
issue that was arguably instrumental in aiding the company
establish itself early in the country was the fact that its shoes have a
broader forefoot, which suits the Indian consumer. In contrast, the
shoes of international rivals have narrower forefeet. It has made
efforts to vibe with the customer for its apparel range as well, that
contributes 45 per cent to the company's turnover. 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. Investment in
building a strong brand is a means of securing Reebok sales and
business for the future. As products get more and more
commoditised and consumer choices soar, branding will provide the
key differentiation to break through the clutter. Fitness will be the
key driver in lifestyles, and Reebok is undoubtedly the fitness
enabler in the country. To inspire Indians at large to lead a fit
lifestyle is Reeboks goal and vision.
To reinforce Reeboks 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. Although this approach may slow Reeboks
top-line development in the short term, but they believe it enables
them to build a platform for future sales and profitability growth. As
a result of their new pricing strategy, there will be a certain level of

competition between the adidas and Reebok brands, particularly at

mid-level price points. To prevent cannibalization, Reebok will clearly
differentiate both brands by communicating distinct brand messages
targeted at different consumer types.
Even after its merger with Adidas, the Reebok brand has continued
to execute its old strategy, positioning itself as a premium sports
and lifestyle brand focused on fitness and 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 Womens
Fitness, Challenge in Mens Training/Sport and Revive Classics.
Central to Reeboks 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 fulfil their
potential in sport and in life by providing them with the opportunity,
the products and the inspiration to have fun staying in shape.
On the promotions front as well the company has increased its
spend and is roping in top sportspersons 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

Product
Reebok has strategically launched various new products in Mens
and Womens segment. This study has described all those products
range launched by the company in recent past. Broadly speaking,
the product range of Reebok consists of footwear, apparels and
sports related accessories.
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.
Promotion
To promote its brand, Reebok has been taking services from
advertising agencies for quite some time now. During 2004-2007,
Mc'Garry Bowen was Reeboks 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.
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.

Product
In alignment to the Marketing strategy discussed in previous section,
Reebok has strategically launched various new products in Mens
and Womens segment. This study has described all those products
range launched by the company in recent past. Broadly speaking,
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 dont 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.
ReeGym
Through Reeboks 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.
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 and consumers
confirm that ZigTech is not only visually striking, but more
importantly it addresses an unmet need of fitness runners and
athletes.
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.
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 maximise 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 colourways 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
panelling as well as PlayDry, a moisture management system that
wicks away perspiration. Stylish, highly functional running tights
employ isolated compression for optimised functionality. Long-sleeve
technical tops utilise 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
PlayDry base layer moves moisture, accelerates evaporation and
reduces abrasion without trapping the bodys 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 SmoothFit 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.

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
infact 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 footwear 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 into 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.

Parent
Company

Nike Inc

Category

Apparel, Sports Equipment and Accessories

Sector

Lifestyle and Retail

Tagline/ Slogan Just do it

USP

Shoes that are made for professional athletes

SWOT Analysis
1. Worlds leading brand for sports shoes and apparel
2.Recognized three times by fortune magazines on 100 best
companies to work for
3. Effective business relationship globally
4. Launched many other products in collaboration with
companies e.g. launched music player, watches etc
5. Exclusive shops all over the world apart from availability
through multi-brand retail stores

Strengths

6. Ranked in top three for climate-friendly companies

7. Associates itself with leading international sports teams,
players and events

1. In Cambodia and Pakistan there have been allegations for

Weaknesses child labor and poor working conditions
1. Product expansion in areas like more concentration in
sunglasses, sportswear etc. which gives high profit
Opportuniti 2. Enhance brand visibility by opening sports academies
es
across the world for nurturing talent
Threats

1.Footwear market is so competitive, major competition from

other brands

2.As it is an international brand currency fluctuations of

countries affects the business
3. Fake imitations and replicas often cause a problem
4. Adaption of new techniques and innovation by other
brands

Adidas
Parent
company

Adidas Group

Category

Apparel and accessories

Sector

Lifestyle and retail

Tagline/
slogan

All in; Impossible is Nothing

Usp

World renowned company for sports equipment, clothing and

other accessories
SWOT Analysis
1. The company has a long heritage and high brand value since
1924.
2. The company sponsors major sporting events including
Olympics and major sportsmen and teams.
3. The company has worldwide presence and is internationally
recognized.
4. The company has a very diversified product portfolio ranging
from sports shoes, equipments to clothing and accessories.

Strengths

5. Strong and innovative marketing since years have created a

strong brand retention in the minds of customers

Weaknesses 1. The products can sometimes be costly due to innovative

technology or production method

2. Stiff competition and similar big brands means customers have
high brand switching
1. To keep up with the competition, Adidas generates close to 60
new foot-friendly designs each year.
2.The company can venture into making more stylish designs and
Opportuniti cuts
es
3. Tie-up with emerging sports teams/clubs/players internationally
1.Other brands offer more styles and varieties, thus more
competition

Threats

2. Threat from other competitive brand who produce sports

equipment and accessories at a lesser cost
3. Pirated/fake imitations affect brand image

Puma
Parent Company

Puma Societas Europa Incorporation

Category

Apparel and accessories

Sector

Lifestyle and Retail

Tagline/ Slogan

Be Light; Celebrate Anytime Anywhere

USP

Innovation and Ultimate comfort in the apparel and products.

SWOT Analysis

Strengths

1. Puma is established over 90 countries and employs around

8300 employees all over the world.
2. Puma is the main producer of enthusiast droving shoes and
racing suits in both Formula One and NASCAR.
3. Puma has entered into partnerships with famous companies

like Ferrari and BMW.

4. Puma brand is very innovative and has a very rich Research and
Development team. The Company produced the first screw boots
for football and Mexico 68 with the innovative brush soles,
which were the most comfortable running shoes.
5. Puma has an excellent brand name throughout the world.
6. The brand has excellent management and marketing strategies
and has the advertised the products very well and eye-catching
throughout the world.
1.Puma has tough competition and limited market share
compared to Nike and Adidas
Weaknesses

2.The company has less financial strength compared to the other

brands in the industry
1. The company can attain more sponsorship as more
international events in the sporting industry are taking place.

Opportunities

2.The company can start entering the lifestyle section of the

industry
1. The current economic situation is very bleak, hence expansion
is minimal.

Threats

2. There is extensive completion from existing players an new

players which is growing in the industry.
Fila

Parent Company

Fila Korea Limited

Category

Apparel and accessories

Sector

Lifestyle and Retail

Tagline/ Slogan

Sport for life

USP

Premium and innovative sports wear

SWOT Analysis
1. The brand has very popular sports brand ambassadors which
has promoted their brand very well.
2. The innovative use of mixing different components of cloth
into making a different sportswear was very successful
3. Filas has a very successful brand image due its motivational
designs
4. They have a very good name for its brand logo as its full of
colors and easily identifiable
Strengths

5. The brand has over 100 stores all over the world

Weaknesses

1. Fila has tremendous competition from sports apparel brand

globally meaning smaller market share
2. Lack of products in the women segment as compared to mens.
3. Distribution channels not as established as the global sports
apparel leaders

Opportunities

1. Fila will be the first brand to inculcate a casual culture into a

brand experience
2. The lines of expanding into casual clothing and sports
equipment

Threats

1. The new changing trends could replace the vintage 80 look

followed by fila.
2.Switching cost is very low in this Industry, so regular innovation
and adapting to changes in sports industry is quint-essential

Reebok
Parent
company

Adidas

Category

Apparel and accessories

Sector

Lifestyle and retail

Tagline/ slogan I am what I am

Usp

The company is known for its innovative and comfortable footwear

and sports apparel.
SWOT analysis
1. Reebok is amongst the top 3 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.

Strengths

5. The brand has been endorsed by many sports stars and movie
celebs globally
1.The brand faces tough problem from fake and duplicate sales

Weaknesses

2. Being a popular brand means any controversy affects brand

image considerably
1. Reebok can expand its kids section.
2. Lifestyle section can be expanded & can be given more focus.

Opportunities

3. More tie-ups with sports academies and schools worldwide

1. Competition by Chinese market can be perceived as a threat.

Threats

2. Fluctuating international currencies can mean losses to the

company.

CONVERSE
Parent company

Nike

Category

Apparel and accessories

Sector

Lifestyle and retail

Tagline/ slogan

Band and Of Ballers; All star shoes, we have got you

covered-clothes

Usp

Trendy and vibrant sports apparel for men and women

SWOT analysis
1. Mid premium segment apparels, shoes and other
accessories for the youth with good adveritisng
2. Range captures international designs and trends and also
special editions are launched for special occasions.
3. The shoes and the skate boards come in customizable
designs
4. The company has a long history since 1908 and a huge
loyal customer base.
5. The company has partnered with a NGO called RED,
working for AIDS relief in Africa.
6. Famous sports celebrities are brand ambassadors

Strengths
Weaknesses

7. The lean organization system which converse follows

makes in manufacture at least cost and minimum wastage.
1. Tough competition from existing brands means limited
market share
2. Converse buys and sells in different currencies and hence

can be at a loss sometimes.

PROMOTION
Advertising Agencies
To promote its brand, Reebok has been taking services from
advertising agencies for quite some time now. During 2004-2007,
McGarry Bowen was Reeboks 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 Reeboks 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.
Key Market Segments
Reebok has started to shift its focus on specific market segments. It
has developed a clear roadmap for its key businesses going forward:
Own Womens Fitness, Challenge Mens 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.
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
Basu were 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, ReebokCCM Hockey and Rockport. In 2008, the Reebok brand has further
refined its strategy considering the brands heritage and values,
consumer insights and positioning within the adidas Group port folio.
Inspired by its roots in sport and womens fitness, Reebok developed
a clear roadmap for its key businesses going forward: Own Womens
Fitness, Challenge Mens Sport and Revive Classics. Central to
Reeboks 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.
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 - Indias 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.
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. Reeboks taglines are
focused on women fitness - where it has deep roots; mens fitness
and training, to be credible an athletic footwear brand; and classics.
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 Indias footwear and athletic apparel market share was 54
percent as 2009 came to a close, up from 51 percent the year
before. Thats a far cry from Reeboks United States numbers. The
company was the first to introduce womens athletic shoes in 1982
and once enjoyed a dominant share of that market. The company
had just a 2 percent share of the womens footwear market in 2009,
down from an almost 9 percent share just two years ago. Reebok
was purchased by German sportswear giant Adidas in 2006 as the
companies sought to catch U.S. market leader Nike.
Store selection strategy
The sportswear giant is targeting a bigger share of both the lower
and upper ends of the market. Has it got the balance right?
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 work. The Greater Kailash post office in New
Delhi, for instance, is a high-income neighbourhood 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 countrys largest seller of sportswear and apparel,
this is a challenge it has to wrestle with every day. It wants to
become a mass-market brand, and the location of stores holds the
key to that. This, mind you, 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 markets
potential. Little did it realise that cars were bought on instalments

here, and a large number of drivers didnt own the cars these
were provided by the office!
In fact, India is the only market in the world where Reebok has such
dominance in the market place.
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
Reeboks 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 crore annually from Connaught Place
itself.
No guts, no glory
Reebok enjoys almost total brand recall in the country. And its lowest
price point is below Rs 1,000 Rs 990 for a pair of jogging shoes, to
be precise. The two basic requirements for going mass-market have
thus been fulfilled. The task in hand is to reach its shoes to
consumers all over India.
It has over 1,000 stores in over 325 cities and towns across the
country, which is more than double of any of its rivals, and the
numbers continue to add every day. About one-third of its stores
(over 300 outlets) cater to the lower end of the market. And it offers
over 80 stock-keeping units (SKUs) under Rs 2,590, which form the
bulk of its sales.
About 70 per cent of its sale volumes come from low-end products,
though in terms of value they constitute 50 per cent of the revenue.
And to keep costs down, over 80 per cent of the footwear is
manufactured in the country.

As per the company, it is difficult to identify where to locate a

Reebok store, as demographic and psychographic data available in
the country is scanty. As per company, the division of cities, towns
and rural locations based on socio-economic data is imperfect
because in reality you can never know when a city has ended and
rural area has started. The census data of 2001 is too old, and
everyone has to add in some multiple to get to the real numbers of a
town or city. The company has developed its own yardstick: It
believes any location which has a population of 10,000 to 15,000
can sustain a Reebok store, especially if it is a service hub. So the
whole idea is to go ahead, put in a store and see if it works. The
good thing is that 95 per cent of the time Reebok is successful while
launching the new store.
Store layout and design:
Taking retail to new heights, Reeboks new store offers the finest
shopping ambience to customers with products displayed by
categories such as Running, Walking, Aerobics, Tennis, Cricket
and Lifestyle, to help customers make better purchase decisions.
Built across 2 floors with individual customized sections for fitness,
sports, lifestyle etc, the store offers a world class shopping
experience. Its the only single brand store with an escalator built
inside the store with a two floor high glass wall carrying footwear,
built in a circular fashion around it. So its literally a ride through a
maze of footwear, giving you a complete sense of the brand coupled
with an over whelming sense of stylized shopping and delight of
choice. With the focus on service and exceptional ambience
paramount to Reebok's objective to providing an experiential
shopping experience, the newly opened Reebok store promises to
offer a larger-than-life feel to the customers.
It offers different segments for both men and women like sports and
fitness footwear, apparel, accessories, fitness equipment and the
lifestyle section. A stupendous cornucopia of womens dance,
fitness, training, and sports collection is also present at the store.
The store also has a corner KREATE YOUR OWN SHOE in which a
customer can actually design their own shoe by choosing the colour,
lace, type of sole etc and buy it too!
Reebok India commands a 51% market share in the premium
sportswear industry. It plans to increase the store count from the
existing 500 to over 600 before the next financial year. Reebok
reaches out to its target customers through its 500 exclusive Reebok
Stores, 200 Shop in the shop outlets & 2500 dealer outlets.

Reeboks Managing Director for India, Mr. Subhinder Singh Prem

expressed his delight at the opening of their largest single branded
store in the world. The opening of biggest Reebok store in the world
in the city of Hyderabad is indeed a proud moment for us. With 500
stores across the country and now the launch of this store, we hope
to delight our customers with greater and more easily accessible
choice. The store would house all categories of Reebok sports,
fitness products and our Lifestyle collection catering to both men &
women.
Future expansion plans
Reebok's 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 India's 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 men's 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.

QUESTIONAIRE
Name

_________________________________

Age

___________

Residence Address

_________________________________
_________________________________
_________________________________

Telephone Number

_________________________________

Q1.

Q2.

Q3.

Q4.

Q5.
Q6.

Q7.

Q8.

Q9.

What type of shoe you like to wear?

a) Formal

c) Casual

Sex

__________

Sports
Any Other

How do you describe the brand REEBOK?

a) Poor

b)
c) Better

d)

Good
Best

Why do you think Reebok is so successful?

a) Range

b)
c) Price

d)

Marketing
Style

Who would you class as Reebok's main competitor?

a) Puma

(c) Converse
c) Fila

(d) Nike

Have you ever purchased anything from Reebok

a) Yes

b) No

What product have you purchased from Reebok in last 1 year?

a) Shoes

b) Apparels
c) Sports equipment

d) Bags

Are you loyal to the brand Reebok?

a) Yes

b)
d)

b) No

Do you consider quality and price is compatible with each other?

a) Yes

b) No
c) cannot say

b) Not bothered

What do you look for in the product before you purchase?

a) Comfort

b) Style
c) Brand

d) Price

Q10. Are you satisfied by the quality of product offered by Reebok?

a)

Yes

b) No