Pdcm Introduction


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A project on the Distribution channel of Reebok

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Pdcm Introduction

  1. 1. HISTORYReebok’s headquartered in the US, Reebok is worldwide designer, marketer anddistributor of sports, fitness and casual footwear, apparel and equipment under theReebok, Rockport, CCM, Jofa, Koho and Greg Norman brands. Reebok announced inAugust 2005 that it would be merging with Adidas. Reebok is an American-inspired,global brand that creates and markets sports and lifestyle products built upon a strongheritage and authenticity in sports, fitness and women’s categories. The brand iscommitted to designing products and marketing programs that reflect creativity and thedesire to constantly challenge the status quo.Reebok International Limited, a subsidiary of the German sportswear company Adidas,is a producer of athletic footwear, apparel, and accessories. The name comes from theAfrikaans spelling of rhebok, a type of African antelope or gazelle. In 1890 in HolcombeBrook, a small village 6 miles north east of Bolton, England, Joseph William Foster wasmaking a living producing regular running shoes when he came up with the idea to createa novelty spiked running shoe. After his ideas progressed he joined with his sons, andfounded a shoe company named J.W. Foster and Sons in 1895.In 1960, two of the founders grandsons Joe and Jeff Foster renamed the companyReebok in England, having found the name in a dictionary won in a race by Joe Foster asa boy; the dictionary was South African edition hence the spelling. The company lived upto the J.W. Foster legacy, manufacturing first-class footwear for customers throughoutthe UK. In 1979, Paul Fireman, a US sporting goods distributor, saw a pair of Reeboks atan international trade show and negotiated to sell them in North America.Reebok surged in popularity in 1982 after the introduction of the Freestyle athletic shoe,which was a designed for women and came out when the aerobics craze started. Not onlywas the Reebok Freestyle popular as athletic wear, but also as casual wear. As a result theFreestyle became an icon of the 1980s fashion scene with hi-top versions and colors,including white, black, red, yellow, and blue. Reebok continues to produce the Freestyleas it is popular with cheerleading, aerobic dancing, the gym and consumers.Following the Freestyle success, Reebok also introduced an athletic shoe for men, calledthe Ex-O-Fit. Similar to the Freestyle, it came in low-top and high-top versions; however,unlike the Freestyle high-top with two velcro closure straps, the Ex-O-Fit only had onestrap. One of the designers of this early footwear was the founders son, David Foster.
  2. 2. OVERVIEWReebok IndiaReebok started its operations in India in 1995. Headed by Managing Director Mr.Subhinder Singh Prem, Reebok India has a pan-India presence with branch offices inMumbai, Kolkata and Bangalore and ranks at the top amongst international footwearcompanies in India. The Companys brand vision is fulfilling potential, its mission –Always challenge and lead through creativity. Reeboks brand values are authentic,individualistic, courageous, empowering, innovative and real. Reebok has introduced itsinternationally acclaimed fitness programs in India, conducted under the banner ofReebok Instructor Alliance, which is dedicated to fitness instructors, personal trainers andhealth club owners. Reebok has trained and certified more than 800 trainers till now.Reebok India commands a 54% market share in the premium sportswear industryaccording to the calendar year December 2008. Its revenue has touched 1400 Crores (atretail price) in 2008. It plans to increase the store count from the existing 500 to over 600before 2007. Reebok reaches out to its target customers through its 900 exclusive ReebokStores, 250 to 300 Shops in the shop outlets & more than 2500 dealer outlets. Reebok hasthe single largest store in Hyderabad.Reebok International Ltd.Reebok International Ltd., headquartered in Canton, MA, is a leading worldwidedesigner, marketer and distributor of sports, fitness and casual footwear, apparel andequipment under the Reebok, Rockport, CCM, JOFA, KOHO and Greg Norman Brands.Sales for 2004 totaled approximately $3.8 billion.According to the Reebok website as on May 2007, Footwear Reebok uses footwearfactories in 14 countries. Most factories making Reebok footwear are based in Asia —primarily China (accounting for 51% of total footwear production), Indonesia (21%),Vietnam (17%) and Thailand (7%). Production is consolidated, with 88% of Reebokfootwear manufactured in 11 factories, employing over 75,000 workers. Apparel Reebokhas factories in 45 countries. The process of purchasing products from suppliers isorganized by region. Most (52%) of Reeboks apparel sold in the United States isproduced in Asia, with the rest coming from countries in the Caribbean, North America,Africa and the Middle East. Apparel sold in Europe is typically sourced from Asia andEurope. Apparel sold in the Asia Pacific region is typically produced by Asian-basedmanufacturers.
  4. 4. Reebok uses the channel which includes manufacturer who is Reebok to warehouse thanto c & f agents than to state-wise distributor than either to retailers or to their own outletsand then to the end customer.Logi s t i c sRebook uses the transportation method for logistics purpose. Reebok and TNT LogisticsItaly have signed a partnership agreement that will run through to the end of 2008. TNTLogistics will continue to manage all distribution logistics activities for Reebok,including product receipt, quality control, storage and handling, preparation of orders anddelivery throughout the country, as well as collecting and managing returns from stores.Around 6,000 m2 of warehouse space will be dedicated to the account at the Scarmagnosite (Turin), TNT Logistics’ hub dedicated to its major customers in the fashion andapparel industry. TNT Logistics will handle a total of over 1,800,000 items per year ofReebok products (footwear and sportswear accessories), the equivalent of 140,000parcels and a volume of over 1,300 tons.“We are very pleased with the renewal of this agreement,” commented Gianfranco Sgro,Chairman and Managing Director of TNT Logistics Italy, “because it is symbolic of thetrust that multinationals like Reebok have been continuing to place in us for some timenow. This partnership is also important as it strengthens TNT Logistics’ position asleading provider for the fashion industry, a sector of economic importance to the countryand strategic to the further development of our organization in Italy.”Product Form & Safety of goodsReebok uses the packaged method because they are not selling their product in a liquid form or aloose form. They are selling their products in a packaged form. And TNT Logistics are managingall distribution logistics activities for Reebok, including product receipt, quality control,storage and handling, preparation of orders and delivery throughout the country, as wellas collecting and managing returns from stores.