The document provides an overview of Reebok, including its vision statement, company overview, products offered, positioning, market share in athletic wear, competitors, SWOT analysis, and strategies. Reebok's principal business is designing and marketing high-quality footwear, apparel, and equipment worldwide. It offers a wide range of products including running shoes, sports equipment, men's and women's styles. Reebok aims to continue inspiring athletes while maintaining quality standards. The document discusses Reebok's competitors and strategies to target women, kids, and developing countries.

1. Presented By: GORKY PURI
NADIR ALI QURESHI
VIKAS TOLANI
SHVETA KAUSHAL
GROUP NO. 22

2. Proposed Vision Statement
Continue to bring inspiration to present and future
athletes, while maintaining the company's standard of
quality for its products.”

3. Company Overview
Reebok’s principal business activity is to design &
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.
Remain market leader in India since 1999

4. Product in Offer
Running
Pink Ribbon
Sports equipments
Men's Styling
Women
Sportswear

5. REEBOK'S POSITIONING
 Celebrate Individuality in Sport and Life
 Reebok understands that people are, above all, unique.
Reebok’s 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.

6. Athletic Wear
Global Market Share

7. COMPETITIVE SCOPES
ADIDAS
 ADIDAS is in the sportswear, apparel and sports accessories industry. The main
competitors of ADIDAS in the industry are NIKE, and PUMA since it acquired REEBOK
in January, 2006.
NIKE
 Nike is currently the world leader in Sports goods industry with a brand value of
$12,672 million. The company concentrates on style and technology with a high price
range of the products.
PUMA AG
 A German based company best known for its football shoes and athletic shoes. The
competition from Puma has become stronger after the 2008 Olympics in which the
Jamaican sprinter Usain Bolt broke records and won 6 gold medals. Bolt was wearing
Puma shoes!

8. SWOT ANALYSIS
Strengths : Weaknesses
Research and development Dependency on
Marketing Footwear sales
Outsourcing Inefficiencies within
Name recognition Management
Y2K+ Readiness Rely on Retail
Financials sales stores to sell.

9. CONTD.
Opportunities : Threats
Asia Competition
College/Pro Sports Sweat Shop Issues
Emergence of more Manufacturing Capacity
Sporting events Global/Domestic Economies
Women’s Marketplace

10. Contribution to Energy
Conservation
Shopping Bags
Energy Audits
Optimum Utilization of
Energy in stores

11. Transformation of a 113 year Old Company

12. Consumer Behavior
Cultural Factors
Social Factors
Economic Factors
Product Factors
Demographic Factors

13. Readiness to Pay
37.07
40
35
25.86
30
19.83
25
20
15 9.48
7.76
10
5
0
500-999 1000-1999 2000-2999 3000-3999 4000 +

14. Strategies
Target Women
Kids
Targeting developing countries
Offering variety of products

15. MARKETING STRATEGY
ADIDAS
 People purchase products or services for
three basic reasons:
 To satisfy basic needs.
 To solve problems.
 To make themselves feel good.

16. MISSION OF THE
MARKETING PLAN
 To devise a marketing plan and formulate strategies which would
help in the achievement of the marketing objectives of the company
which are,
 Market penetration – gaining market share across all markets in
which we compete
 Market development – expanding into new markets and addressing
new consumer segments
 Awareness - increasing awareness and visibility across all brands,
providing clear and consistent messaging and supporting product
initiatives at the point-of-sale.

17. MARKET INDUSTRY
 Comfort
 Durability
 Style
 Price
 Brand

18. ADIDAS –
Strategy in India
 Adidas’ strategy in India has been consistent over the past few years.
 The broad elements of the strategy are to target the brand to urban youth
with our brand proposition from ‘competition to lifestyle’ using the
authentic sports platform and build and reinforce credibility through
relevant brand ambassadors and grassroots sports marketing programs.
 It would target principal consumption centres, namely metros and build
significant stand-alone exclusive store presence in significant locations.
 The strategy would be to play to our strengths, i.e. in apparel and mid to
high priced footwear.

19. CONTINUED
 Multi-Brand Approach
 There is a natural limit a brand can achieve given the diverse tastes and expectations
of a highly fragmented consumer market. Thus, a multi-brand approach will provide
the firm with a major competitive advantage and significant additional commercial
opportunities compared to a single brand strategy. It can leverage the power of its
brands in a more precise and meaningful way, utilizing the combined strengths of
each to compete for a higher percentage of the market, covering a greater number of
consumer needs, price points and demographics.

20. COMPETENCE
 Broader distribution
 Close cooperation with retailers can significantly improve the in-
store experience for the product. Establishing shop-in-shop formats
(e.g. with JJB and Dick’s Sporting Goods) or retail partnerships (e.g.
with INTERSPORT) are examples where the company is leading the
industry. Such co operations can be particularly effective in markets
that have become dominated by price and lack of differentiation.
 Cost leadership
 The acquisition of Reebok has created significant opportunities to
reduce and optimize costs, through scale benefits, back office
consolidation and combined capital expenditure planning.

21. PUMA
 BRAND PERSONALITY
 Passion
 Openness
 Self-belief
 Entrepreneurship

22. SUCCESS FACTORS
 Strong Presence: Sports and lifestyle fashion
market
 Products meeting market demand
 Big distribution network
 High innovative and qualitative products
 Harnessing resources and experiences
 Ample knowledge in R&D

23. 4 P’s of
Marketing Mix

24. PRODUCT
 It has wide range of footwear, sportswear,
sports goods, fashion accessories.
 Black label include collboration with
renowned designers such as Alexander
 Puma group owns Puma, Tretorn, Hussein,
Chalayan.

25. PRICE
 Puma’s pricing is designed to be competitive
to the other fashion shoe retailers. The
pricing is based on the basis of premium
segment as target customers. Puma as a
brand commands high premium.

26. PLACE
 Puma shoes are distributed to Multi-Brand
store front and the exclusive Puma stores
across countries. It allows Puma to offer a
such wider selection than any of the
competition.

27. PROMOTION
 Location, targeted advertising in the
newspaper and strategic alliances serves as
the foundation of Puma advertising and
promotion effort. The athletes and other
famous sports personalities are always taken
as brand ambassadors. They form the prime
building blocks of their portion strategy.

28. SWOT ANALYSIS
STRENGTHS OPPORTUNITIES
Branding Technology
Management Acquisitions
International Strategy Sponsorships
Experience in R&D Fitness hype
WEAKNESS THREATS
Missing sports segment High competition
Distribution system Limitation of products
Comparable lower financial resources Actual economic situation

29. PORTER’S FIVE FORCES
Many providers on market Threat High Competition
Build up healthy brand image of new Permanent threat :
entrants
same sector
Bargaining power
Bargaining power
of suppliers Rivalry of buyers
Threat
Own distribution
of
Big retail chains
substiut
Vulnerable sports market es Fragmented Market
Own retail store network

30. COMPETITORS
 NIKE. Inc
Number one sports brand in the world
 ADIDAS SALOMON AG
Focus on core sports like soccer, tennis, athletics, skiing
 PRADA SPORTSWEAR
Well known luxury brand
 DIESEL
Major fashion brand including: sunglasses, footwear,
watches, fragrances and writing tools

31. NIKE
 Nike is a global sports shoe giant company. It
is the largest seller of athletic footwear in the
world, holding the lion share of 33% of the
global market.
 The company has production facilities in
Asia, sales facilities in almost 200 countries,
and customer service and other operational
units worldwide

32. THE 4 P’s
OF MARKETING

33. PRODUCT
 Nike offers a wide range of shoe, apparel and equipment products,
all of which are currently its top-selling product categories.
 Nike started selling sports apparel, athletic bags and accessory
items in 1979. Their brand Cole Haan carries a line of dress and
casual footwear and accessories for men, women and children.
 They also market head gear under the brand name Sports
Specialties, through Nike Team Sports, Inc.
 They sell small amounts of plastic products to other manufacturers
through Nike IHM, Inc. Bauer Nike Hockey Inc. manufactures and
distributes ice skates, skate blades, in-roller skates, protective gear,
hockey sticks and hockey jerseys and accessories.

34. PRICE
 Nike’s pricing is designed to be competitive to the other fashion
shoe retailers.
 The pricing is based on the basis of premium segment as target
customers. Nike as a brand commands high premiums.
 Nike’s pricing strategy makes use of vertical integration in pricing
wherein they own participants at differing channel levels or take part
in more than one channel level operations. This can control costs
and influence product pricing.

35. PLACE
 Nike shoes are carried by multi-brand stores and the exclusive Nike
stores across the globe.
 Nike sells its product to about 20,000 retail accounts in the U.S. and
in almost 200 countries around the world.
 In the international markets, Nike sells its products through
independent distributors, licensees and subsidiaries.
 Independent distributors need not adapt to local pressures because
the 4Ps of marketing are managed by distributors.

36. PROMOTION
 Promotion is largely dependent on finding accessible store locations. It
also avails of targeted advertising in the newspaper and creating
strategic alliances.
 Nike has a number of famous athletes that serve as brand ambassadors
such as the Brazilian Soccer Team.
 Nike also sponsors events such as Hoop It Up and The Golden West
Invitational.
 Nike’s brand images, the Nike name and the trademark swoosh, make it
one of the most recognizable brands in the world. Nike’s brand power is
one reason for its high revenues.
 Nike’s quality products, loyal customer base and its great marketing
techniques all contribute to make the shoe empire a huge success.

37. SWOT ANALYSIS

38. STRENGTHS
• Nike is a globally recognized for being the number one
sportswear brand in the World.
• Nike being a competitive organization has a healthy aversion
towards its competitors i.e. during Atlanta Olympics, Reebok
expensed on sponsoring the games; Nike however sponsored the
top athletes and due to this step, it gained valuable coverage.
• Nike has no factories; rather it uses contract factories to get the
work done which makes it quite a lean organization. It has
contracts with above 700 shops globally in about 45 different
countries.

39. STRENGTHS
•Nike is quite strong regarding its research and development; quite evident
regarding its evolving and innovative product range.
•They manufacture high quality at the lowest possible price, if prices rise
due to price hike then the production process is made cheaper by
changing the place of production.
•It belongs to the Fortune 500 companies. Nike employs about more than
30.000 people worldwide.
•It has a strong sense of marketing campaign by sponsoring top athletes.
•It uses linarite foam and fly wire materials in order to make the
manufactured shoes lighter and more controllable.

40. WEAKNESSES
•Even though the organization has a diversified range for
sportswear, the income of the business, however, is still
heavily dependent upon its share of the footwear market
which leaves it at a quite vulnerable spot if for any reason
its market share erodes.
•The retail sector is price sensitive; retailers usually tend to
offer a very similar experience to the consumers with
another cheaper product, which in return tends to get
squeezed as retailers try to pass some of the low price
competition pressure onto Nike.
•Nike was for quite some time unwilling to disclose any type
of information concerning its partnering companies.

41. WEAKNESSES
• It was charged with the violation of overtime and
minimum wage rates in Vietnam, 1996, that was
seen as having poor working conditions, and that it
was also charged for exploiting cheap workforce
overseas.
• Nike was also reported to have applied child labor in
Pakistan and Cambodia to produce soccer balls.
• It was positioned as a subject of criticism by anti-
globalization groups due to its unruly and exploited
manner that was quite a disaster for its reputation.

42. OPPORTUNITIES
• The brand is sternly defended by its owners who believe that Nike is not a
fashion brand, however, a large number of consumers wear Nike Product
because they derive a fashion trend rather than to participate in a sport.
• It is mostly argued that in youth culture, Nike is a fashion brand which also
creates opportunities for Nike since its products would become outdated before
even the product wears out i.e. consumers will feel the need to replace the
product with a newer trend.
• There are many international regions that still need tapping and there is need
for sportswear and with Nike’s strong global brand recognition, it can initiate in
many markets that have the disposable income to spend on high value sports
goods.
• Nike gives a lot of effort on its corporate marketing mainly through the
promotion of corporate brand and sponsorship agreements.

43. THREATS
• Nike is exposed to the international nature of
trade so it sells its product in different
currencies which destabilizes the costs and
margins for profits over long periods of time.
• The market for sports shoes and sportswear is
quite competitive; the competitors are
constantly developing alternative brands and
techniques to take away Nike’s market share.

44. THREATS
• Consumers are constantly shopping around for a better deal that
conveys a good quality and if one store charges a higher price for the
products, the consumer would try to seek a better deal of the same
product in the premises that delivers the same value but cheaper of the
two, this type of price sensitivity among the consumers is a potential
threat to Nike.
• The textile industry unpleasantly upsets the atmosphere, and therefore
the organization is constantly struggling to retain its eco-friendly
reputation.
• A recession may lead to job shortages in most of Nike’s worldwide
branches.
• The organization has experienced many adverse publicity feedbacks due
to its widespread advertising.

45. THE PORTER FIVE
FORCES

46. Rivalry among current
competitors in the industry
 The first part is analyzing the current treat or rivalry among
the existing firms. In the footwear industry, the level of
rivalry is high. There are several competitors such as
Reebok, Adidas, New Balance, Puma and of course Nike.
The competition between these companies is so intense
because they are dealing with short-life cycles products.
 The growth the athletic footwear industry has experienced
over the past twenty years is beginning to stabilize. This
forces firms to differentiate using marketing, advertising,
fashion and technology to steal market share away from
their competitors.

47. Threat of new entrants to
the industry
 The next part is the threat of new competition entering to the
sport footwear industry. The threat in this area is low because
many of the powerful companies in this industry are benefit from
the economic of scale. Since they are producing, marketing,
selling and innovating more, they are saving money because their
fixed costs are spread out over a larger volume.
 Another factor which affects the new companies to enter this
industry is product differentiation. Big companies such as Nike,
Reebok and Adidas own their brand identity that differentiates
their product to others and they have established their own loyal
costumers.

48. Bargaining power of
buyers
 The costumers have low bargaining power
because the customers cannot affect the
profitability of the industry or the company.
Each pair of shoes is a very small percentage
of overall sales and consumers usually do not
buy shoes in large quantities.

49. Bargaining power of
suppliers
 The bargaining power for the suppliers is
medium. The product is unique, and the
switching costs are high. It is also possible for the
suppliers (especially in foreign manufacturing) to
integrate forward into the industry's business (in
overseas markets) and become a rival to the
industry.
 Since the raw materials and equipment to make
the sport shoes is very important to the
companies, supplier cab gain bargaining power.

50. Threat of substitutes
 This factor is low in the sport footwear
industry, because there are already few
substitute products for it, such as the specific
performance shoes like for basketball, soccer,
baseball, tennis, etc.
 The sport footwear industry is constantly
innovating and adapting to the new trends
and costumers needs that can decrease the
treat of substitute products

51. RECOMMENDATIONS
 Nike should be more aware of their bad reputation in the labor
practice and try to come out with solution for the unethical business.
 Nike is a well known for their product all over the world. However,
Nike must be more careful in releasing the advertising because such
big reputation
 Costumer price sensitivity is a potential treat to Nike, that’s why
Nike need also to consider their product price in order to compete
with the other sport brand products.
 Try to think solution in case for the big treat of the merger of other
sport brand.
 Focus on their product development is very good, but they have to
consider also what are the costumer really needs

52. FOOTWEAR INDUSTRY: PEST
ANALYSIS
 POLITICAL
 Recent merger between Adidas and Reebok
 Home market lobbying/pressure groups
 Very few sporting events apart from cricket fixtures to attract
customers

53. ECONOMIC
• Marginal share of 2.44 percent in global trade worth US$ 97.606 billion
• Estimated target of 12 bn $ (7bn $ export + 5 bn $ domestic) trade by the year 2012
overseas economies and trends.
• The Indian footwear retail market is expected to grow at a CAGR of over 20% for the
period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of
the total leather exports by 2011 from over 38% in 2006-07.
• Growing middle class and growing buyer power leading customers to look for
branded shoes.
• seasonality issues – sports is more of a rage in summers.
• Lack of targeting of market segments for kids and women .

54. SOCIAL
 Lifestyle trends – upward shift
 Demographics
 Consumer attitudes and opinions changing favorably towards branded shoes
 Media views
 Consumer buying patterns
 Fashion and role models
 Buying access and trends
 Advertising and publicity

55. SUPPLY CHAIN IN FOOTWEAR
 In nutshell the supply chain in footwear starts from the farmers end and ends with
finished goods in the customer’s hand. The farmers who tame the animals send the
skins to skins & hides collector in their respective area, then these raw materials are
sent to the tannery which transforms these skins into raw material for the shoe
manufacturing companies, which in turn convert this into finished goods in the form
of footwear.
 Further these footwear are sent to warehouse of the manufacturing companies, after
that these goods are supplies to customers through various channel members like
retailers, wholesalers, retail chains, department stores. The diagrammatic illustration
is shown below:

56. SUPPLY CHAIN IN FOOTWEAR

57. CONSUMER’S PREFERENCE
 Globally, Nike is the market leader and has
captured the major share of the footwear
industry. It is known for its excellent quality,
designs and the brand name. It is widely
accepted and preferred at a global level.

58. INDIAN PERSPECTIVE
 In India, Reebok and Nike are mostly
preferred by men as they are priced
competitively and has a fairly good
reputation.
 Puma is the first choice among girls due to
their feminine designs and colors. They are
even reasonably priced.

59. SWOT ANALYSIS OF
FOOTWEAR INDUSTRY

60. STRENGTHS
 Existence of more than sufficient productive
capacity in Tanning
 Easy availability to Export Market
 Export Friendly government policies
 Well established linkage with buyers in EU
and USA

61. WEAKNESSES
 Environmental Problem
 Delay in delieveries
 Uneconomical size of manufacturing units
 Non availability of quality footwear
components
 Little Brand Image

62. OPPORTUNITIES
 De-reservation of the footwear sector
 Growing fashion consciousness globally
 Growing international and domestic market
 Use of modern technology
 Exhibit strengths in manufacturing ,eg.
strength in classic shoe manufacturing

63. THREATS
 Entry of multinational in domestic market
 Stiff competition from other countries
 Limited scope for mobilising funds through
private placement and public issues,as many
business are family owned

64. CONCLUSION
 The athletic footwear industry is a strong, market driven industry.
From the five forces, four are favorable in this industry.
 The threat of the potential entrants is low, the bargaining power of
buyers is low because each pair of shoes sold in very small
percentage, the bargaining supplier is medium, and the only
weaknesses to this industry is the current rivalry.
 The competition is very intense and the increase of the research
development and the advertising can be very highly expensive.

65. Q1.Do you prefer wearing sports
shoes

66. Q2.“WHICH BRAND DO YOU PREFER”

67. Q3.HOW DO YOU CONSIDERED THE
IMPORTANCE OF SPORT SHOES?

68. Q4.“WHAT FACTORS INFLUENCE YOU TO
GO FOR A PARTICULAR BRAND”

69. Q5.“ARE YOU SATISFIED WITH THE
QUALITY OF PREFERD BRAND”

70. Q6.“ARE YOU SATISFIED WITH THE
PRICE RANGE”

71. Q7.“IF PRICES OF YOUR PREFERED
BRAND INCREASES WILL YOU PURCHASE
AGAIN”

72. Q8.“DO YOU NORMALLY SWITCH OVER THE
BRAND”

73. Q.9“IS THERE ANY EFFECT OF
ADVERTISEMENT ON SELECTION OF
BRANDS”

74. Q10.“WHAT KIND OF PROMOTIONAL TOOL
YOU PREFER”

75. Q11.“WILL YOU BUY PREFERED BRAND
AT LOW COST OF NEGLIGIBLE
QUALITY”

76. Q12.“IS THERE ANY IMPACT OF
CELEBRITIES ON YOUR PURCHASING”

77. Q13.DO YOU THINK WEIGHT IS A
FACTOR FOR CHOOSING BRAND

78. Suggestions & Recommendation
 Research finding
 AFTER ASSESSING THE OVERALL
 MARKET SCENARIOS WHAT CAME IN PICTURE WAS
 AS FOLLOWS:
 CONSUMER REACTIONS SUGGESTS THAT NIKE IS THE MARKET LEADER
AMONG ALL ITS CLOSE COUNTERPARTS IN THE SPORTS SHOE AND
APPAREL SEGEMENTS.
 AFTER ITS SPONSERSHIP TO MAJOR SPORTS EVENTS AND TEAMS LIKE
SOCCER IN EUROPE AND CRICKET IN INDIA GIVE IT AN EXTRA EDGE.
 PEOPLE ARE STILL EXPECTING SOME THING MORE FROM NIKE
 ADIDAS IS CHASING ITS POSITION MOST AGGRESIVELY SO NOW IT
REQUIRES MAINTAINING ITS POSITION WITH NEW STUFF.

79.  Nike has been the major competitor for adidas.
 The new stuff of the adidas is attracting the consumers more which
might led adidas at the top spot in the pack in coming financial year
 CONSUMERS ARE NOT SHOWING THAT KIND OF CRAZE IN REEBOK
FOR PAST FEW YEARS .
 PROBABLY IT COULD BE BECAUSE OF THE AGGRESSIVE ATTENTION
SNATCHED BY BRANDS LIKE “NIKE” AND “ADIDAS” SPECIALY IN
INDIA .
 ONLY 8% MARKET HAS BEEN COVERED BY REEBOK IN RECENT
PAST. THAT IS MISERABLE AS PER ITS STANDARD
 REASONS BEING ITS RESTRICTIVE MANUFACTURING IN INDIA, AND
THE COST OF THE PRODUCTS ARE NOT AFFORDABLE AS
COMPARED TO EUROPEAN AND U.S MARKET


80. Suggestion
“THE BOTTOM LINE” OF THE MARKET
RESEARCH SPEAKS THAT BRANDED
SHOES IN INDIA HAS BEEN INCREASINSG
ON DAY BY DAY BASIS.
THAT SOUNDS GOOD FOR
INTERNATIONAL AS WELL AS DOMESTIC
MARKET.

81. Questions & Comments