PowerPoint Presentation
How to improve the brand image of Reebok in India facing
competition from Nike(Repositioning)
Stage 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. FostersCEO-Uli BeckerThe company is retailing from almost
750 exclusive stores. It also retails from 2 thousand multi-brand
outlets.
Reebok headquarters inCanton,Massachusetts, U.S.Reebok started
making profits in 1999 and was one of the first MNCs that posted
profits post liberalisation.
Other some objctives are1.To Empower Global Youth to Fulfil
their Potential.2. Celebrate Individuality in Sport and Life3.
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.NIKEsponser -the most popularathletesand
teams.50% shares in basketball, 80% shares in cleated shoesEndorse
Michael Jordan, Pete Sampras Just Do It theme Swoosh
logoREEBOKsponsors big events and organisations.15% shares in
basketball , < 20% shares in cleated shoesEndorse 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, Adidas-Salomon acquired Reebok in
USD 3.8 billion
STAGE 2STRATEGIC 4P ANALYSIS
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).1.PRODUCT STRATEGY
REEBOK PRODUCTS
2.PRICING STRATEGYMain 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 STRATEGYADVERTISING2004-2007,Mc Garry
Bowen-Reeboks 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 PROMOTIONShort 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,coupons and custom made sneakers on
their products
4.PLACE (DISTRIBUTION)In 2009,integrated with the largest
integrated franchise and retail solution provider-FRANCHISE 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.
Offers over 80 stock-keeping 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.PLACE
Stage 3:Strategic Marketing & Consumer analysis
Stage 3: Strategic Marketing & consumer analysisPast trend
late 1990s-2008
Current Market scenario
ESTIMATE MARKET FOR 3 YRSReebok 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 salesGender
segments: Men segment buys more but Women segment has higher
growthPrice segments: 62% of sneakers cost less than $50Sports
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:Toreinforceitspositionasapremiumsportsandlifestylebrand,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 4STRATEGIC COMPETITION ANALYSIS
MAJOR PLAYERS
MARKET SHARE
FOCUSChallenge 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 SUPPLIERSLarge number of substitute
inputs.Inputs have little impacts on costs.Diverse distribution
channel.
BARGAINING POWER OF CUSTOMERSLimited buyers choice.
Large number of customers
THREAT OF SUBSTITUTESSubstantial product differentiationLimited
number of substitutes.INTENSITY OF EXISTING RIVALRYRelatively few
competitors
THREAT OF NEW COMPETITORSHigh capital requirement.
Strong brand names are important.
Industry requires economies of scale.
Customers are loyal to existing brands
Stage 5Strategic Customer Analysis
Segment Customer Groups
How to make customers Aware
A certain store in the US of its monthly Sales
Stage 6Strategic RecommendationsMarket-product
StrategiesPromotion MixBrand PromotionsCustomer LoyaltyHR
Development
Presented by:Anamika KajolHersh
