Reebok India commands a 54% market share in the premium sportswear industry. It reaches customers through 900 Reebok stores and 2,500 dealer outlets. The document analyzes Reebok's taglines and logos over time such as "Have Fun While You Run" and "I am what I am". It discusses Reebok's print, television, internet and celebrity endorsement advertising strategies. Reebok sponsors sports teams and events in India like the IPL and Formula One's Force India team. The marketing manager interview discusses Reebok's market leadership and plans to continue expanding operations and exploring new models to offer innovative products to consumers.
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Reebok India's Advertising and Sales Promotion Strategies
1. MARKETING MANAGEMENT ASSIGNMENT
ON
ADVERTISING AND SALES PROMOTION
SALES PROMOTION –
TO SOMETHING DIFFERENT TO STIMULATE CHANGE
Submitted By:
KAVITA SHARMA
N-33
KINSHOOK CHATURVEDI
N-35
FMS Part Time MBA 2009-12
3. Objective
The objective of the assignment is to assess the advertising and sales promotion strategies
implemented by Reebok India for creating awareness among masses.
Overview of the Sector
The Indian footwear retail market is expected to grow at CAGR of over 20% for the
periods spanning from 2008 to 2011. The annual domestic consumption of shoes in India
is 1.1 billion pairs and it is estimated that the footwear market is around Rs 10, 000 crore
and will grow at 10% pa, this offers great opportunities for MNC Brands Sold in India
like Adidas, Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee
cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport,
Stacy Adams, Levi Strauss , Lee Cooper, Puma and Indian Brands sold in India like
Bata, Red Tape, Liberty, Khadims, Lakhani, Metro, Action, Provogue, ID, M&B
Footwear.
Reebok India commands a 54% market share in the premium sportswear industry in the
Rs 2000-crore premium sportswear market. Reebok reaches out to its target customers
through its 900 Reebok Stores & 2500 dealer outlets. The company has plan to tap tier II
and Tier III cities. Reebok is planning to add 55 new lifestyle stores by the end of this
year. It offers different segments for both men and women like sports and fitness
footwear, apparel, accessories, fitness equipment and the lifestyle section.
Reebok India
Reebok 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 in
Mumbai, Kolkata and Bangalore and ranks at the top amongst international footwear
companies in India. The Company's brand vision is fulfilling potential, its mission –
Always challenge and lead through creativity. Reeboks brand values are authentic,
individualistic, courageous, empowering, innovative and real.
Analysis of Reebok Taglines and Logos
Reebok Taglines Development
Tag lines give a brand the momentum it can only dream of, if it is used the right way. It is
very important to develop a catchy corporate tagline in addition to a great corporate logo
that will effectively communicate in one sentence what services or products the company
sells.
In 2008, Reebok joined hands with the celebrity Bipasha Basu to make fitness fun with
Reebok. The Easytone campaign prompts people to “Ree-think” the definition of sport.
Reebok's challenger approach is to provide consumers with the choice to take the
boredom out of working out. Running online, out-of-home, in-store, and in print, the
campaign features fun, engaging taglines such as, "Less work, more play. Fitness is what
you make of it. “Your Move" and "Confusing fitness with fun?
4. Some of the other Taglines of Reebok are:
June 2009 – “Have Fun While You Run”
Early 2008 – “I am what I am”
“Take the gym with you”
“Eye candy for your feet”
“Little Said, greatly Felt! ”
Promotion Strategy
Reebok is committed to make fitness fun – 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 company uses various promotional tools to bring awareness
among its customers. It offers discounts, vouchers, coupons and
custom made sneakers on their products. Apart from this, there
are celebrity endorsements, road shows, sponsorship events,
television commercials, print ads, billboards, alliance events.
Print Media Advertising
Print Media Advertising consists of newspapers and Magazines. It also includes outdoor
billboards, transit posters, the yellow pages, and direct mail.
Magazine
Reebok features its
print ads on
magazines like
Flimfare, Cineblitz
and Stardust. The
famous ad
campaign of
Mahindra Singh
Dhoni and Bipasha
Basu were featured
in these magazines.
5. Newspaper
Reebok features its ad in supplement papers of national dailies like HT City of Hindustan
Times, Delhi Times of Times of India, Mumbai Times of Times of India
Electronic Media Advertising
Television Media
In 2008, Reebok commercial of “Your Move” ad campaign
featured celebrities like Bipasha Basu and Mahindra Singh
Dhoni.
In 2007, global campaign of “Two People in One”, television
commercials include Rahul Dravid.
Infomercial
Infomercials are also known as direct response television (DRTV) commercials or direct
response marketing.
The main objective in an infomercial is to create an impulse purchase, so that the
consumer sees the presentation and then immediately buys the product through the
advertised toll-free telephone number or website. Infomercials describe, display, and
often demonstrate products and their features, and commonly have testimonials from
consumers and industry professionals. Reebok arranges several infomercials in the sports
based program.
Reebok first infomercial was in April 2001 for the Reebok Core Board, a stationary
muscle training program. It was a 28-minute infomercial which demonstrated the system,
including the workout regimens, user testimonials and the system functions.
Internet Advertising
Reebok.com sells the same products on their web site as they do in the stores, providing
the users more ways of getting what they want. The prices of goods sold at Reebok.com
are comparable to those sold by their retail partners, so as not to take away sales and
revenues from their traditional channel partners.
6. Celebrity Endorsement
This type of advertising focuses upon using celebrity power, fame, money, popularity to
gain recognition for their products and promote them.
Reebok India took Indian cricket stars like M.S Dhoni and Yuvraj Singh.
Sponsorship Advertising
Reebok sponsors many sports both internationally and nationally.
Reebok India
Reebok sponsored sports kits for the great rich Indian Premier League teams, such as the
Royal Challengers Bangalore, Kolkata Knight Riders, Rajasthan Royals, Chennai Super
Kings and Deccan Chargers in the first edition of the league held in 2008.
Reebok also became the official partner of Force India on February 2009. Force India -
India’s only Formula One Team - is all set to speed its way into the fast-paced lives of
more and more Indians by partnering with premier sports and lifestyle products giant
Reebok as its official apparel and footwear merchandising partner for the next 5 years.
After inking the association in 2008, the partnership between Force India F1 team and
Reebok has rolled out with the 2009 Force India Team wear collection.
Reebok sponsors top three football clubs in India including East Bengal club and Mohan
Bagan. In Tennis they are sponsoring three budding Tennis players in India.
TIE UPS
Reebok innovates in colours and styling and has tied up with Manish Arora to launch
collections.
Reebok recently unveiled “My Name is Khan” collection, which is a fusion of sports and
lifestyle and is targeted at a growing, globally sports and fashion conscious Indians.
Other great brands like Whirlpool are tying up with Reebok as they see it as a good
value-add, incentivising purchase through Reebok products instead of doling out price
discounts. So, it is a win-win situation for everybody involved.
Reebok below the Line Promotion
In 2007, Reebok India had started with its Run Easy Campaign. In an attempt to
encourage consumers to participate in the campaign, Reebok will give away ten thousand
pairs of shoes in the first phase. The company has decided to explore the parks frequented
by joggers to undertake promotional activities for the campaign.
Reebok Easy Vans along with trainers will demonstrate the spirit of Reebok Run Easy at
the parks in cities like Delhi, Mumbai and Bangalore. The trainers will also teach fitness
steps like warm ups, breathing patterns and foot movements to the joggers. The campaign
enables Reebok to associate directly connect with the consumers, unlike cricket where
they are involved as mere viewers. Reebok has launched three new footwear collections
to attract the consumers who have just started running.
Bibliography
1. Interview with Subhinder Singh Prem, MD Reebok India – published in
the Economic Times, 11TH Feb 2010, Thursday.
2. www.reebok.com
8. Interview with Subhinder Singh Prem, MD Reebok India published in Economic Times, 11th
February 2010, Thursday.
SUBHINDER SINGH PREM MD, REEBOK INDIA
In India, cricket has made us a masstige brand
9. HE HEADS the
biggest sports
and fitness
brand in the
country, a
brand that
enjoys over
54% market
share in India.
Yet Reebok
India
managing
director
Subhinder
Singh Prem is
still running to
the fun beat. A
company
displaying
challenger
mindset, Prem
says that the
brand will
continue to
expand
operations,
explore new
distribution
models and
offer
innovative
products to the
consumers.
Reebok
recently
unveiled My
Name is Khan
collection,
which is a
fusion of
sports and
lifestyle and is
targeted at a
growing,
globally sports
and fashion
conscious
Indians. In an
interview with
Amit Sharma,
Prem
discusses
about winning
strides of
Reebok.
Excerpts: