AMITY BUSINESS SCHOOL

MARKETING MANAGEMENT

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. 2008 Annual Sales = $ 2.66 billion and 2009 Annual Sales = $ 2.49 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

Marketing Strategies

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.

List Of Reebok Technology

Reebok Pump E.R.S Hydromove ZigTech Hexalite PlayDry PlayWarm PlayShield 3D Lite DMX DMX10 DMX6 DMX I-pack DMX Reflex

DMX Shear DMX Plus EasyTone RunTone KineticFit(K.F.S) HexRide U-Form Hardlink Bead Away Griptonite SmoothFit X-Beam Graphlite

Market Segmentation
The products of Reebok are divided into different segment that is: a) HIGH LEVEL CLASS: for men, women and kids. b) MIDDLE LEVEL CLASS: for men, women and kids. Reebok has not produce products for lower level class.

Market Segmentation (Continues)

Reebok has segmented its products as per the sets of needs and wants of customers. Shoes- athlete shoes, aerobic shoes, basketball shoes, football shoes, golf shoes etc. Clothes- t-shirts, jackets, track suits, shorts, pants, short sleeves, jerseys, vests etc. Sports Equipments- gloves, cricket bats, caps, sports guards, sports kits or gear etc.

Athletic Shoe Market Share, 2000

Athletic Shoe Market Share, 2009

Competitive Profile Matrix (CPM)

PROFILE:

Reebok

Marketing Mix 4Ps

Product

Footwear, apparel, fitness equipment, licensed watches, sunglasses, caps, jackets, bags etc. Products may be merchandised as collections or assortments requiring coordinated delivery. Products may require special fixtures.

Products (Continues)

Reebok EASYTONE

Reebok ZIGTECH

Price

Different prices for different products like shoes, watches, kits, equipments, jackets, socks etc. Prices of Reebok products are facing comparative price competition with other products such as NIKE and ADIDAS. Reebok provides comparatively high range price in any of its product.

Promotion

Reebok promotes its products through advertising in the form of different T.V. channels, newspapers, magazines, internet, banners etc. Now days main promotion is done by the brand ambassador. Current ambassador is current Indian Captain M.S. Dhoni in India. He is also brand ambassador of 24 companies in Jan-June 2010.

Place (Channel Of Distribution)

Department stores Sporting goods Specialty retailers Company-owned stores Internet Wholly-owned, international Subsidiaries and distributors.

Practical Example: Nike vs. Reebok (Buy-Side)

Nike
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Active Buy-Side Institutional Ownership Reebok

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Investor Name MFS Investment Management Boston Partners Asset Management, L.L.C. Lazard Asset Management, L.L.C. First Pacific Advisors, Inc. I. G. Investment Management, Ltd. Fidelity Management & Research Glenview Capital Management, L.L.C. Neuberger Berman, LLC Goldman Sachs Asset Management (US) Hotchkis and Wiley Capital Management, LLC Stonebrook Fund Management Principled Capital Management, L.L.C. American Century Investment Mgmt. Jennison Associates LLC Suffolk Capital Management, LLC Victory Capital Management Inc. Wachovia Securities Dalton, Greiner, Hartman, Maher & Co. PPM America, Inc. I. G. International Management Ltd. Red = Common Owners
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Investor Name Fidelity Management & Research Janus Capital Management LLC Marsico Capital Management, L.L.C. Wellington Management Company, LLP Lord, Abbett & Co. LLC RCM Capital Management LLC Putnam Investment Management, L.L.C. J.P. Morgan Investment Management Inc. (New York) AIM Management Group, Inc. Berkshire Hathaway Inc. Enhanced Investment Technologies Inc. Robert M. Bass (Oak Hill Strategic Partners) MFS Investment Management Capital Research & Management Company ING Investment Management Co. (CT) Fiduciary Asset Management Co. Tudor Investment Corporation Northern Trust Global Investments Capital Growth Management L.P. Chase Investment Counsel Corporation

Practical Example: Nike vs. Reebok

Nike $22 bil ion 1.62x 8.57% 1.15% 13.72%

Item Market Cap EV/Sales Net Income Margin Dividend Yield Total Debt/Total Capital

Reebok $3 bil ion 0.66x 5.06% 1.32% 30.04%

Major Differentiation Yes Yes Yes No No

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SWOT Analysis
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

SWOT Analysis Continue

OPPORTUNITIES
Established objectives Result-oriented culture Strengthen management team Contemporize products Relevant advertising and marketing campaigns Grow quality market share Restructured production creation teams

THREATS
Strong US dollar may affect brand Having weak department store channel Foreign market is suffering

SWOT Analysis Continue

The Sounds and Rhythm of Economic decline in key Sport. fashion consumers markets National Football League Chinese products campaign Strong Competition Changed leadership for difficult brands Ability to create synergy between brands Special Technology

Thank You