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Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
Sneaker Wars - Nike Vs Reebok
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Sneaker Wars - Nike Vs Reebok

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Class assignment at MMUGM

Class assignment at MMUGM

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  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • The factories stated that sometimes they have to keep the products at the consolidator because the products are too early for the timelines acceptable by Logistics. According to Logistics, “the consolidator does not manage shipments based on the factories GAC dates (RGAC). If the factory delivers cargo as stated in their booking to the consolidator and the cargo is not 'needed' by Nike's destination region the cargo will be held at the consolidators warehouse at the expense of the destination region. The 14 day rule is basically the average amount of time allowed as 'free time' by the consolidator at origin.” In other words,
  • Transcript

    • 1. Sneaker Wars : Reebok Vs Nike Marketing Management- MM UGM AP 6B How Reebok dealing head to head competition with Nike Group 7: Danny Dharmawan Kosasih Retno Nuramini
    • 2. Reebok Company Overview <ul><li>Reebok, the second largest shoe company in US market </li></ul><ul><li>Founders: Joseph William Foster and his grandsons </li></ul><ul><li>Sales in 1981, 1,5 million. Post introduction of Freestyle, woman aerobic exercise shoe in 1982, sales exploded in the next year from $13 million to $307 million in 1985. In 1987, Reebok shares of US athletic footwear surpassed Nike </li></ul><ul><li>In addition to Reebok sportswear and accessories, Reebok sports the Greg Norman line of men&apos;s casual wear, as well as Rockport and Weebok shoes. </li></ul><ul><li>Runs more than 220 retail stores. </li></ul><ul><li>Reebok sponsors some sports stars, but the firm is taking strides to become more fashionable. </li></ul><ul><li>In 2005 Reebok sold its Ralph Lauren Footwear unit to Ralph Lauren for about $110 million. </li></ul><ul><li>Adidas, in 2006, acquired Reebok for about $3.8 billion. Paul Harrington then succeeded Paul Fireman (who, with his wife, owned nearly 19% of the firm) as head of Reebok. </li></ul>
    • 3. Nike Company Overview <ul><li>Nike, the world&apos;s biggest shoe company, holds nearly 37% of the US market, a giant lead over #2 Reebok, which has 20.5%, and #3 Fila, with only 5.1%. </li></ul><ul><li>Nike - a powerhouse in the world of sports, the designer and international marketer of athletic shoes, casual footwear, apparel, and accessories </li></ul><ul><li>Founders: Bill Bowerman and Phil Knight. First year-sales totaled $ 8,000 (1962) </li></ul><ul><li>Employees approx 26,000 people worldwide. 650,000 are employed in Nike contact factories around the world. </li></ul><ul><li>Revenue FY05: $ 13.7 billion ( 12% increase from FY04) </li></ul><ul><li>Manufacturing: 137 factories in Americas (including US), 104 in EMEA, 252 in North Asia and 238 in South Asia. </li></ul>
    • 4. Reebok Vs Nike : Milestones Reebok Founded Nike Founded Launch Freestyle Nike went public 50% athletic shoes Fireman bought Reebok Launch Instapump Change to “V” logo Endorse Shaq Launch Shaq Attack shoe Price Fixing Gain back market leadership
    • 5. Content of the War <ul><li>Reebok Vs Nike : War points </li></ul><ul><li>Reebok Vs Nike : Sales &amp; Net Income </li></ul>
    • 6. Reebok Vs Nike: War points <ul><li>In 1990’s, 15% shares in basketball , &lt; 20% shares in cleated shoes </li></ul><ul><li>Endorse Shaquille O’neal, Michael Chang </li></ul><ul><li>“ Planet Reebok” theme </li></ul><ul><li>“ V” logo </li></ul><ul><li>Reebok Instapump </li></ul><ul><li>Shaq Attack </li></ul><ul><li>50% shares in basketball, 80% shares in cleated shoes </li></ul><ul><li>Endorse Michael Jordan, Pete Sampras </li></ul><ul><li>“ Just Do It” theme </li></ul><ul><li>“ Swoosh” logo </li></ul><ul><li>Nike Air </li></ul><ul><li>Air Jordan </li></ul>
    • 7. Reebok Vs Nike : Sales &amp; Net Income Reebok Domination Nike Domination
    • 8. Context of the War <ul><li>Porter’s Five Forces </li></ul><ul><li>Industry &amp; Market Competition </li></ul><ul><li>Marketing War </li></ul><ul><li>Competition on Buyers/Customers : Foot Locker, The Biggest Shoes Seller </li></ul><ul><li>Others : Reebok Turmoil, Price Fixing </li></ul>
    • 9. Porter’s Five Forces (Industry competitive analysis) Source: Marketing Management. 2000. Kotler (p.241) Competition among Rivalry Buyers (Buyer Power) Suppliers (Suppliers Power) Threat of New Entrant Substitutes Area of competition: Reebok Vs Nie
    • 10. Industry &amp; Market Competition Shoes Industry Basketball Soccer Athletic Sport Shoes Casual Shoes Tennis Golf Baseball Men’s wear Women’s wear Apparel &amp; accessories Industry Casual Industry Sub Industry Market Competition among Rivalry Reebok and Nike are competing each other head to head in all markets
    • 11. Marketing War Competition among Rivalry Segmentation Targeting Positioning Product Price Promotion Placement Reebok and Nike are battling by marketing strategy and marketing mix Marketing Strategy Marketing Mix (Tactic)
    • 12. Foot Locker Company Overview
    • 13. Competition on Buyers/Customers : Foot Locker, the biggest shoes sellers Buyers (Buyer Power) Nike had won over Reebok in dealing with buyer/customers. Nike maintains relationship with Foot Locker, the biggest athletic footwear seller  x
    • 14. Reebok To Win The War <ul><li>Market Challenger - Attack Strategies </li></ul><ul><li>Principles of Flank Attack </li></ul><ul><li>Redefine the marketing war! Shifting the competition </li></ul>
    • 15. Market Challenger - Attack Strategies Attacker Defender (4) By pass attack (2) Flank attack (1) Frontal attack (3) Encirclement attack (4) Guerilla Attack Source: Marketing Management. 2000. Kotler (p.241) 
    • 16. Principles of Flank Attack <ul><li>Principle #1 </li></ul><ul><li>A good flank attack must be pointed to uncontested market </li></ul><ul><ul><li>Find the battle ground where no competitor existence </li></ul></ul><ul><ul><li>Segmenting approach </li></ul></ul><ul><ul><li>Foreseen the market </li></ul></ul><ul><li>Principle # 2 </li></ul><ul><li>Tactical surprises must be the most important thing in the planning </li></ul><ul><ul><li>Make undetectable (by competitor) marketing action </li></ul></ul><ul><ul><li>Surprises must be sustainable to shock the competitor </li></ul></ul><ul><li>Principle # 3 </li></ul><ul><li>Sustaining the attack is same critical as the attack itself </li></ul><ul><ul><li>Attack and attack! </li></ul></ul><ul><ul><li>Attack competitor’s biggest weakness </li></ul></ul>Source: Marketing War. Ries &amp; Trout. 1986
    • 17. Reebok Redefine The Marketing War <ul><li>Re –segmenting, Re-targeting &amp; Re-positioning! </li></ul><ul><ul><li>Explore and exploit new market segment </li></ul></ul><ul><ul><li>New Positioning </li></ul></ul><ul><li>Differentiate! </li></ul><ul><ul><li>Create point of differentiation from Nike </li></ul></ul><ul><li>Renovate! </li></ul><ul><ul><li>Gain market insight to renovate product lines </li></ul></ul><ul><ul><li>Gain relationship with major customers </li></ul></ul><ul><li>Innovate! </li></ul><ul><ul><li>Emphasis on product innovation </li></ul></ul>Source: Group discussion
    • 18. Reebok Redefine The Marketing War FOCUS Source: Group discussion <ul><li>or! </li></ul>
    • 19. Reebok Products Source: Group discussion
    • 20. Nike Products Source: Group discussion
    • 21. Nike Products Source: Group discussion

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