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a. Topic of the Project b. Rationale for the study c. Objectives of the Study d. Research Methodology to be used for carrying out the study (dealing nature of data, data sources, collection methods, tools and techniques of analysis, sampling, cauterization etc.) e. The expected contribution from the study. f. Limitation.
Reeboks
Reeboks principal business activity is to design, development & worldwide marketing of high quality footwear, apparel, equipment.
Distributed around the world: (Asia, Australia, Canada, Europe, Latin America, and the United States)
Reebok is 3rd largest seller of athletic footwear and athletic apparel in the world.
HISTORY OF REEBOK
1890-1930's Reebok's United Kingdom-based ancestor company was founded for one of the best reasons possible: athletes wanted to run faster. So, in the 1890s, Joseph William Foster made some of the first known running shoes with spikes in them. By 1895, he was in business making shoes by hand for top runners; and before long his fledgling company, J.W. Foster and Sons, developed an international clientele of distinguished athletes. The family-owned business proudly made the running shoes worn in the 1924 Summer Games by the athletes celebrated in the film "Chariots of Fire."
1950-1980 In 1958, two of the founder's grandsons started a companion company that came to be known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok shoes at an international trade show. He negotiated for the North American distribution license and introduced three running shoes in the U.S. that year. At $60, they were the most expensive running shoes on the market.
1980's By 1981, Reebok's sales exceeded $1.5 million, but a dramatic move was planned for the next year. In 1982, Reebok introduced the first athletic shoe designed especially for women; a shoe for a hot new fitness exercise called aerobic dance. The shoe was called the Freestyle, and with it Reebok anticipated and encouraged three major trends that transformed the athletic footwear industry: the aerobic exercise movement, the influx of women into sports and exercise and the acceptance of well-designed athletic footwear by adults for street and casual wear. Explosive growth followed, which Reebok fueled with new product categories, making Reebok an industry leader.
In the midst of surging sales in 1985, Reebok completed its initial public offering (stock symbol is NYSE: RBK). A year later, Reebok made its first strategic acquisition, The Rockport Company. Rockport was a pioneer in using advanced materials and technologies in traditional shoes and the first company to engineer walking comfort in all types of dress and casual shoes. In the late 1980s, Reebok began an aggressive expansion into overseas markets and Reebok products are now available in more than 170 countries and are sold through a network of independent and Reebok-owned distributors. Creating innovative products that generate excitement in the marketplace has been a central corporate strategy ever since Reebok introduced the Freestyle. In the late 1980s, a particularly productive period began with The Pump technology and continues today, with breakthrough concepts and technologies for numerous sports and fitness activities. 1990's In 1992, Reebok began a transition from a company identified principally with fitness and exercise to one equally involved in sports by creating several new footwear and apparel products for football, baseball, soccer, track and field and other sports. That same year, Reebok began its partnership with golfer Greg Norman, resulting in the creation of The Greg Norman Collection.
In the late 1990s, Reebok made a strategic commitment to align its brand with a select few of the worlds most talented, exciting and cutting-edge athletes. Since then, the company has focused on those athletes who represent the top echelon of sports and fitness. 1999-2000 In 1999-2000, Reebok and the National Football League announced an exclusive partnership that serves as a foundation of the NFLs consumer products business. The NFL granted a long-term exclusive license to Reebok beginning in the 2002 NFL season to manufacture market and sell NFL licensed merchandise for all 32 NFL teams. The license includes on-field uniforms, sideline apparel, practice apparel and an NFL-branded footwear and apparel collection. Logos
Products
Brands
Reebok International Rock Port RBK CCM Hockey (Worlds largest) Greg Norman Apparel Ralph Lauren Brand The Hockey Company Avia Onfield Apparel Athletic footwear
Went public in 1985 and is traded on the New York Stock Exchange. Share Price 2006 2007 2008 2009 $ 69.62 $ 58.31 $ 56.97 $ 56.53
REEBOK'S VISION
Reebok 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.
Continue to bring inspiration to present and future athletes, while maintaining the company's standard of quality for its products.
REEBOK'S 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.
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.
Ever since it established a presence in India in 1995, Reebok has dominated the Indian sportswear market. While its major competitors Adidas and Nike have not been as successful in
the Indian market. As a consumer-driven brand, Reebok commits to offer consumers products that provide maximum fit and comfort. For Reebok this means designing and developing products with materials, styles and technologies that enhance fit and comfort for consumers. The Reebok segment is comprised of the Reebok brand, Reebok-CCM 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. The depth of Reeboks India operations is reflected in the numbers. The company says it is growing at a compounded annual rate of 30 per cent for the past 3-4 years; in 2007, it says, it crossed Rs 900 crore in sales. Reebok has segmented its market on the basis of the needs of the consumer groups like runners, Aerobic/fitness exercisers, Tennis players, Basket Ball players, Golfers, Adventure
seekers, Walkers, Children, Comfort/Style conscious group. For each particular segment of group they offer unique range of shoes (products) and continuously come up with new line of shoes. The shoes they offer are like running shoes, Aerobic shoes, Tennis shoes, Basket Ball shoes, Kids shoes, Walking shoes, Training shoes, Golf shoes. With technologies such as SmoothFit, KineticFit and The Pump, Reebok has already provided consumers with innovative fit elements in its apparel and footwear. Reebok target customers are kids, youth, women and men. Reebok mission is to make fitness fun again for women . Reebok began to define its focus on womens fitness in autumn 2008, launching a womens specific Your Move campaign. In 2009, Reebok launched a new range of shoes especially for women who are busy and dont find time to gym. The EasyTone footwear collection was launched for the targeted group of busy women. In 2009 for men Reebok launched the SelectRide, an underfoot cushioning technology that allows the athlete to select the train or run mode. Research pointed that Reeboks target age 15-24 were early adopters/sneaker influencers. The price point was too large a barrier for the brand target and they were not influencing other groups. If they went after a sub-target group more interested in, and willing to pay for custom, they could not
only achieve their goals, but likely surpass them by tapping into the influencer capabilities of this group. They successfully increased brand awareness, traffic and sales and engaged users through a highly targeted, segmented approach to selling Reeboks custom sneakers. The tagline I am what I am became a promise to the consumer that Reebok was a brand that enabled selfexpression Media placements included areas where users consumed trend news, popular sneaker sites, music sites, electronics and apparel fashion sites to reach this targeted audience.
Online banner creative emphasized the key selling feature of the shoe allowing users to customize the shoe with a few clicks including color choice within the banner and ultimately be driven to the custom website to finalize the process and buy their personally designed shoes.
Positioning
To reinforce its position as a premium sports and lifestyle brand, Reeboks goal is to significantly improve and increase its product offering at high and mid-price points to drive growth in average selling prices. This approach may slow the
targeted short-term top-line development by voluntarily foregoing build a commercial platform for opportunities sustainable in the low-price sales and segment. More importantly, however, it enables Reebok to long-term profitability growth and preserves the brands image.
Celebrate Individuality in Sport and Life Reebok understands that people are, above all, unique. Reeboks positioning reflects this; celebrating the distinct qualities that make people who they are - their unique points of view, their individual style and their remarkable talents and accomplishments. Reebok celebrates their individuality, their authenticity and the courage it takes to forge their own path to greatness. While some may call them crazy or eccentric, Reebok calls them visionary and original.
Reebok offers a wide range of Footwear, Clothing and Accessories for both Men and Women. In the footwear product mix it offers in Athletic, Casual and Court in a color range like black, brown, grey, white, blue and pink. The footwear mix is offered both in men and women. In the
clothing, Reebok offers like jackets, tops and bottoms for both men and women for activities like yoga, tennis, walking, fitness and training. Accessories like bags, sippers, caps. The Reebok brand focuses on three product lines: Rbk, Performance, and Classic. Rbk product line features street footwear, apparel, and accessories. Performance line includes apparel and footwear designed for basketball, running, fitness, football, soccer, tennis, and other sports. Classic lifestyle product line includes footwear and apparel products, as well as classic reinterpretations. Reebok also has licensees for eyewear, watches, and heart rate monitors; and licensees in the United States for children's apparel, team uniforms, socks, and jogging strollers. The Ralph Lauren Footwear's product line features traditional classics, as well as dress and casual silhouettes. The Greg Norman Collection includes wovens, play dry outerwear, and sweaters. The company also offers hockey skates, sticks, helmets, and hockey-related apparel, as well as recreational skates and the Roger Edwards line of lifestyle apparel. Its licensed and branded active wear lines include fleece wear, pants, shirts, T-shirts, polo shirts, turtlenecks, and outerwear and headwear embroidered with various teams' logos. The company distributes its products to athletic specialty stores and other retail shops, as well as to sporting goods stores, department stores, and shoe stores.
REEBOK'S PURPOSE
To Empower Global Youth to Fulfill their Potential Reebok recognizes that it has a responsibility to make a positive, lasting difference in the lives of our consumers, employees, partners and the world at large. For two decades, Human Rights, through the Reebok Human Rights program, were the primary focus of this effort. In 2007, Reebok expanded on what had been built and created a Global Corporate Citizenship platform with a purpose for the brand, to empower global youth to fulfill their potential. The primary pillar of the platform is Reebok 4 Real, which combines and maximizes the energy, resources, funds and passion of employees, athletes and artists, and our retail partners to create a network of empowerment that will help underprivileged, underserved youth around the world fulfill their potential and live healthy, active lives.
Other countries
267 M
258 M
47 M
2009 2010
$ 3,223 M $ 2,897 M
$ $
Net sales decrease(2008 to 2010) Net Income decrease (2008 to 2010) $124.08M
Sales (Shoes)
72%
1999
1998
1997
Advertisement campaign
Weaknesses
Rely on retail stores to sell products Issues with foot lockers Poor employment practices at their international
Internal strength
Weig ht 0.01.0
Rati ng 1-4
3 4 4 4
0.20
Dedication to employees Hydro technology DMX technology 4 major divisions & 6 SBUs Advertisement campaign Internal Weakness mover
0.05
3 4
0.15 0.40
moisture 0.10
4 3 3 Rati ng 1
Rely on retail stores to sell 0.05 products Issues with foot lockers 0.05
1 2
0.05 0.20
Poor employment practices at 0.10 their international manufacturing sites Heavy dependency on footwear 0.10 sales Total (including Strengths & 1.00 Weaknesses) CONCLUSION
0.20
3.20
Reebok gain 3.20 IFE total weighted score which is above 2.50 thats why Reebok is Internally very strong
Changed leadership for difficult brands Ability to create synergy between brands Special Technology
Threats Strong US dollar Weak department store channel Foreign market is suffering Economic decline in key markets Chinese products Strong Competition
EFE (External Factor Evaluation) Matrix Opportunities Weig ht 0.01.0 Established objectives 0.15 4 2 0.60 0.10 Rati ng 1-4 Weighted Score (WxR)
Restructured production creation 0.05 teams Its a Womans World young 0.10
0.30
women The Sounds and Rhythm of 0.05 Sport. fashion consumers National campaign Changed leadership for difficult 0.05 brands Ability to create synergy 0.03 1 0.03 1 0.05 Football League 0.05 2 0.10 2 0.10
between brands Special Technology Threats 0.10 Weig ht Strong US dollar Weak department store channel Foreign market is suffering 0.10 0.03 0.05 4 Rati ng 2 1 2 2 2 2 0.40 Weighted Score 0.20 0.03 0.10 0.10 0.18 0.10 2.38
Economic decline in key markets 0.05 Chinese products Strong Competition Total(Opportunities Threats) 0.09 0.10 & 1.00
Conclusion
Reebok gain 2.38 EFE total weighted score which is above 2.50 thats why Reebok is Externally facing strong competition.
Tows Matrix:
S-O strategies
Use the expertise and experience of Fireman and Yankowski to carryout objectives (S2, S3, O1)
Further increase profits by utilizing the restructures production creation teams (S1, O7)
Further
strengthen
the
multi-brand
strategy
with
Further
strengthen
the
multi-brand
strategy
with
changed leadership and synergy to grow quality market share (S5, O6, O11, O12) S-T strategies Utilize the teams connection to the consumer to counteract sales lost because of the strong US dollar, weak department store channels, and suffering foreign market (S4, T1, T2, T3) Utilize multi-brand strategy to find a connection to foreign markets (S5, T3) Use the increased profits to research other profitable markets to strengthen the foreign market and avoid the negative effects of declining key markets (S1, T3, T4) W-O strategies
Strengthen objectives to curb the effect on heavy dependent brands (O1, W4)
Strengthen campaigns to correct difficult brands and lessen the need to rely on department stores (O3, W1, W4)
W-T strategies
Maintain brands to lessen the effect of the US dollar and foreign markets (W4, T1, T3)
Lessen the reliance on retail stores to avoid the effects of weak department store channels (W2, T2)
Promote brands in different markets to lessen the reliance on suffering key markets (W4, T4)
Conclusions
A major weakness of Reebok is located in their top management. They lack top management depth and face high management turnover. This is attributed to the CEO, Paul Firemans inability to delegate efficiently. Key employees and top management were sometimes left out of the "loop". Additionally, the board of directors felt Firemans salary was too high. In advertising, Reebok had difficulty positioning itself. Reebok changed advertising agencies eight times and they earned a reputation as a difficult client. Reebok aimed to differentiate its shoe and apparel lines and hired Shaquille ONeal as a superstar endorser. Then Reebok changed advertising agencies and Shaqs new role was contradictory to the old.
Reebok largest customer is Footlocker, yet they established poor relations with them, when they ignored their request to manufacture a specialty line exclusively for Footlocker. Reebok was a poor listener to Footlocker, which has a good ear to consumer wants and needs.
Lastly, and most importantly, Reebok needs to improve their top management environment and utilize the skill that they are paying for. Ignoring delegation duties in the top management will not reduce the management turnover and will limit managements progress. Reebok has a strong name and even stronger campaign plans. However, the company has a few areas that need to be analyzed and corrected. The areas include: 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.
Decisions
Primary: Focus on finding the most promising customers (kids and women) and introduce more products or improve current ones to satisfy potential increase in demand Alternatives: 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 so resulting increased earnings could be reinvested into R&D plans Why This Strategy?
U.S. Women: Prefer fashion, not footwear, they prefer clothing; we must create a shopping style based in athletic shopping.
U.S. Kids: E-commerce, influenced by innovation and design, not only comforts or sports
Reebok need to consolidate US sales compared to international sales and international competitors
Difficult to expand towards other sports or population segments Implementations (Actions): Women:
Open specific stores specialized only for women Increase R&D expenses by in women products Increase Marketing expenses by designing a specific
campaign for women using female endorsements Create a new logo for women market which would be associated with fashion trends and introduce new products Kids: Increase R&D expenses in kids products Increase Marketing expenses by designing a specific campaign for kids Introduce more soccer and basketball products
targeting potential youth market Research in international market to find out what are the new trends related with women and kids products (Long-term)
Bibliography
Marketing
research
Principles,
Kolter, Philips d (2000), Marketing Management, Prentice Hall of India Pvt. Ltd. New Delhi.
Kothari, C.R. : research methodology, Methods and Technology, Wishwa Prakashan, New Delhi.
Websites: http://finance.yahoo.com Reebok Annual Reports Reebok Quarterly Reports Annual ranking of America's largest corporations www.reebok.com www.bigcharts.com www.businessweek.com www.wikkipedia.org Strategic Management Concepts and Cases; Fred R. David, 10th Ed.
OBJECTIVE OF RESEARCH
ITS CUSTOMER IN COMPARISION TO ITS COMPETETIORS SUCH AS ACTION, LIBERTY, BATA ETC. IDENTIFY THE MARKET SHARE BRAND NAME LIKENESS OR DISLIKENESS OF TEENAGERS
RESEARCH METHODOLOGY
These types of research design used project are exploratory. Exploratory research is that in which new relationship are discovered. Design of Conclusive Research
Study of Secondary sources of information:Different book of marketing and research served as sources of information. The information from Internet was very useful as well. Survey of individual with ideas on general subject:Information was also collected from owner and distributor of Reebok, which is base of this whole project.
Data Collection Method:The method used to collect data is from primary sources. This method is appropriate as compared to secondary data available looking at the objectives of the report. The method used to collect data is a survey in which questionnaire is prepared and is given to the respondent to fill it.
Sampling method:-
The universe of this research report consists of 1 dealers and 25 customers those served as source of information.
Research designs:
Research Type
25 Customers & 1
respondents of
MARKET RETAILER
SHARE
OR
VARIOUS
BRANDS
AS
PER
C onsum style er
8 % B oot
11%
8%
5% 3 Without L ces a
53%
25% Sports
33% Formal
Formal Casual
36% Casua l
Sports Ladies
FINDINGS
The
customer
of
Reebok
shoes
is
very
less
in
comparison of other brand shoes. Basically red chief provide best leather but it has no stylish design in comperision of other brand. Most of the customers prefer p.u. sole incomperision of other type of sole such as eva, tpr etc.
Reebok shoe sell its product from its dippo from which it has no gud market over the up basicaly in Pune, Chandigarh. The price range of market shoes between 1200-3200 is maximum icasso, and lee cooper etc. The students are influenced with range, design, style and comfertbility. Look of the leather shoes. Where as the service class person and business class person emphasize on more price, quality, durability, discount {if any} and all guarantee period. New brands are emerging in the market other than existing ones and they capturing some big market share. these brands include franco, leone,
LIMITATIONS OF STUDY
Retailers hesitate to give the answer to some question like profit margins
CUSTOMERS QUESTIONNAIRE
1. Which Company brand do you use? a. Action b. Reebok c. Red & Chief d. Others
2. What do you think about the price of product? a. High b. Low c. Reasonable
3. How did you come to know about this brand? a. Newspaper b. Magazine Hoardings 4. What criteria you see when you purchase Rseebok Shoes? a. Brand Name b. Price c. Quality d. Others c. T.V. d.
5. Do you feel Reebok Shoes price Economic? Yes/ No. & Why ? -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------6. If you purchase any other companys Shoes? Which one is you preferred? ------------------------------------------------------------------------------------------7. Do you have any complaints? Yes / No ;-----------------------------------------------------------------------------------------------------------------------------------
8. Which facet of product should be focused more whether product, quality, Price, Advertisement. ---------------------------------------------------------------------------------------
Date: Signature
CERTIFICATE
DATE: __________
The
project
report
titled
MARKETING
STRATEGY OF REEBOK in Sagar City Prepared by PRATEEK MEHTA (MBA 1ST guidance and supervision of Sem), under the
(Lecturer of MBA Deptt., SVNIT, SAGAR) for the partial fulfillment of the degree of Master of
1. Contents and presentation of the subject matter 2. Language 3. Embodies the original work of the candidate. 4. Submission within due date
Signature of
Signature of H.O.D.
DECLARATION BY CANDIDATE
I declare that the project report on MARKETING
MISS. NEHA
DUBEY (Lecturer of MBA Deptt., SVNIT) affiliated by Dr. Hari Singh Gour University, Sagar (M.P.).
To the best of my knowledge the report does not contain any work which has been submitted for the award of any degree, anywhere.
ACKNOWLEDGMENT
I would like to pay my sincere thanks to Dr. Pramesh Gautam Head of the Dept., SVNIT. Sagar for
providing me the opportunity of doing the project report. I would to express my deep sense of gratitude to Miss. Neha Dubey, advises, Lecturer for her & valuable Constant
guidance,
Cooperation
encouragement during the project preparation. She is very supporting and without her help I would not have completed my project report successfully. I express my heartful thanks to Miss. Preeti Shukla, Mr. Ashish Tiwari Miss. Ritu Khatri & Mr. Chaitanya Kaushikya and to the staff of SVNIT, Parents and friends for their kind support and suggestion.
I am very thankful to retailer and customer whom I had approached for collection of necessary data and who give their valuable time and comments, which were the inputs for my survey. Date: Place: Prateek Mehta MBA 1ST Sem.
P E A E R F C
The student of M.B.A. 1st Sem. has to undergo project report as a part of their academic Course. MARKETING STRATEGY OF
REEBOK is a part of this project report. Student has to do survey in the market and gather information regarding their respective survey. The main purpose of undergoing such a survey is to know the customer preference, retailer opinion & analyzing this information to find out the Marketing Strategy of Reebok.
The survey was conduct is Sagar city and much of the information is taken through websites of Reebok Company. This report presents the
introduction of Reebok along with data analysis, interpretation, limitation, suggestion and conclusion. The field survey was conduct with help of questionnaire, personal interview in Sagar city and through Internet. The main purpose of the survey is to determine the popularity of the Reebok products and the customers & Retailers preference about Reebok in Sagar City.