MARKETING MANAGEMENT ASSIGNMENT ON ADVERTISING AND SALES PROMOTIONSALES PROMOTION – DO SOMETHING DIFFERENT TO STIMULATE CHANGESubmitted By:KAVITA SHARMAN-33KINSHOOK CHATURVEDIN-35FMS Part Time MBA Ist year 2009-12
ObjectiveThe objective of the assignment is to assess the advertising and sales promotion strategiesimplemented by Reebok India for creating awareness among masses.Overview of the SectorThe Indian footwear retail market is expected to grow at CAGR of over 20% for theperiods spanning from 2008 to 2011. The annual domestic consumption of shoes in Indiais 1.1 billion pairs and it is estimated that the footwear market is around Rs 10, 000 croreand will grow at 10% pa, this offers great opportunities for MNC Brands Sold in Indialike Adidas, Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Leecooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport,Stacy Adams, Levi Strauss , Lee Cooper, Puma and Indian Brands sold in India likeBata, Red Tape, Liberty, Khadims, Lakhani, Metro, Action, Provogue, ID, M&BFootwear. Reebok India commands a 54% market share in the premium sportswear industry in theRs 2000-crore premium sportswear market. Reebok reaches out to its target customersthrough its 900 Reebok Stores & 2500 dealer outlets. The company has plan to tap tier IIand Tier III cities. Reebok is planning to add 55 new lifestyle stores by the end of thisyear. It offers different segments for both men and women like sports and fitnessfootwear, apparel, accessories, fitness equipment and the lifestyle section.Reebok 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.Advertising AgenciesIn 2004, Reebok hired McGarry Bowen as there advertising agency. Till 2007,McGarry was Reebok’s brand agency. McGarry Bowen was founded in 2002 and hasoffices in New York and Chicago. McGarry Bowen is a fully-integrated agency withadvertising, design, relationship marketing and a digital arm. The Agency has been therecipient of many honors, including Adweek’s President’s Award for the “non-traditionalagency having the greatest impact on the industry.” The Agency works with many of theof the world’s best known companies including JPMorgan, Chase, Kraft, Disney,Marriott International, Chevron, Pfizer, HP, Reebok International, Crayola, InBev,Century 21, News Corp, The Wall Street Journal and the U.S. Olympic Committee.During the period of McGarry Bowen, Reebok had done advertising and marketing forvarious products. Pump sneakers advertisements, “Two People in Everyone” adcampaign, Runners head game- I am What I am ad campaign were all under thisadvertising agency.In early March 2009, Reebok appointed DDB Worldwide as its creative advertising
agency.DDB will provide creative solutions across a range of brand advertising andmarketing communications and will service the business from three hubs: Berlin,Chicago, and Hong Kong.DDB Worldwide Communications Group Inc (www.ddb.com) is the largest consolidatedadvertising and marketing services global network in the world, according to AdvertisingAge.DDB also has been frequently ranked as the most awarded agency network in the worldby Creativity magazine and The Gunn Report, among others. With more than 200 officesin over 90 countries, the DDB Group believes that creativity is the most powerful force inbusiness, building enduring and powerful brand experiences that create TalkValue,™influence social communities and drive results. DDB Worldwide is part of OmnicomGroup Inc.The agency handles brand advertising and marketing communications as the brand seeksto establish the brand in the womens fitness market. The ad campaign “Your Move” wasdone under this agency.In September 2007 in Hong Kong, Reebok handed its regional advertising business toWPP subsidiary Soho Square. Reebok is the founding client for Soho Square, which willmanage Reeboks key markets in the Asia Pacific including Hong Kong, Japan, Korea,Australia and India and China.Analysis of Reebok Taglines and LogosReebok Taglines DevelopmentTag lines give a brand the momentum it can only dream of, if it is used the right way. It isvery important to develop a catchy corporate tagline in addition to a great corporate logothat will effectively communicate in one sentence what services or products the companysells.In 2008, Reebok joined hands with the celebrity Bipasha Basu to make fitness fun withReebok. The Easytone campaign prompts people to “Ree-think” the definition of sport. Reeboks challenger approach is to provide consumers with the choice to take theboredom out of working out. Running online, out-of-home, in-store, and in print, thecampaign features fun, engaging taglines such as, "Less work, more play. Fitness is whatyou make of it. “Your Move" and "Confusing fitness with fun?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 AdvertisingPrint Media Advertising consists of newspapers and Magazines. It also includes outdoorbillboards, 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.NewspaperReebok features its ad in supplement papers of national dailies like HT City of HindustanTimes, Delhi Times of Times of India, Mumbai Times of Times of India
Electronic Media AdvertisingTelevision MediaIn 2008, Reebok commercial of“Your Move” ad campaignfeatured celebrities like BipashaBasu and Mahindra SinghDhoni.In 2007, global campaign of“Two People in One”, televisioncommercials include RahulDravid.InfomercialInfomercials are also known as direct response television (DRTV) commercials or directresponse marketing.The main objective in an infomercial is to create an impulse purchase, so that theconsumer sees the presentation and then immediately buys the product through theadvertised toll-free telephone number or website. Infomercials describe, display, andoften demonstrate products and their features, and commonly have testimonials fromconsumers and industry professionals. Reebok arranges several infomercials in the sportsbased program.Reebok first infomercial was in April 2001 for the Reebok Core Board, a stationarymuscle training program. It was a 28-minute infomercial which demonstrated the system,including the workout regimens, user testimonials and the system functions.Internet AdvertisingReebok.com sells the same products on their web site as they do in the stores, providingthe users more ways of getting what they want. The prices of goods sold at Reebok.comare comparable to those sold by their retail partners, so as not to take away sales andrevenues from their traditional channel partners.TIE UPSReebok innovates in colours and styling and has tied up with Manish Arora to launchcollections.Reebok recently unveiled “My Name is Khan” collection, which is a fusion of sports andlifestyle 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 goodvalue-add, incentivising purchase through Reebok products instead of doling out pricediscounts. So, it is a win-win situation for everybody involved.Celebrity EndorsementThis type of advertising focuses upon usingcelebrity power, fame, money, popularityto gain recognition for their products andpromote them. Reebok India took Indiancricket stars like M.S Dhoni and YuvrajSingh.Sponsorship AdvertisingReebok sponsors many sports both internationally and nationally.Reebok IndiaReebok sponsored sports kits for the great rich Indian Premier League teams, such as theRoyal Challengers Bangalore, Kolkata Knight Riders, Rajasthan Royals, Chennai SuperKings 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 ofmore and more Indians by partnering with premier sports and lifestyle products giantReebok 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 andReebok has rolled out with the 2009 Force India Team wear collection.Reebok sponsors top three football clubs in India including East Bengal club and MohanBagan. In Tennis they are sponsoring three budding Tennis players in India.Reebok below the Line PromotionIn 2007, Reebok India had started with its Run Easy Campaign. In an attempt toencourage consumers to participate in the campaign, Reebok will give away ten thousandpairs of shoes in the first phase. The company has decided to explore the parks frequentedby 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.Interview with Subhinder Singh Prem, MD Reebok India published in Economic Times, 11thFebruary 2010, Thursday.SUBHINDER SINGH PREM MD, REEBOK INDIAIn India, cricket has made us a masstige brand
HE HEADS thebiggest sportsand fitnessbrand in thecountry, abrand thatenjoys over54% marketshare in India.Yet ReebokIndiamanagingdirectorSubhinderSingh Prem isstill running tothe fun beat. Acompanydisplayingchallengermindset, Premsays that thebrand willcontinue toexpandoperations,explore newdistributionmodels andofferinnovativeproducts to theconsumers.Reebokrecentlyunveiled MyName is Khancollection,which is afusion ofsports andlifestyle and istargeted at agrowing,globally sportsand fashionconsciousIndians. In aninterview withAmit Sharma,Premdiscussesabout winningstrides ofReebok.Excerpts:
REEBOK INTERNATIONAL APPOINTS DDB WORLDWIDE AS LEADCREATIVE AGENCYCANTON, MA (March 20, 2009) – Reebok International has appointed DDB Worldwide as itslead creative agency, Rich Prenderville, Reebok’s Head of Global Brand Marketing announcedtoday.DDB will provide creative solutions across a range of brand advertising and marketingcommunications and will service the business from three hubs: Berlin, Chicago and Hong Kong.Amir Kassaei, Executive Creative Director of DDB Germany will spearhead global creative effortson the account."DDB showed us incredible depth of creative resources around the world, deep thinking in non-traditional arenas and a passion for creative solutions beyond advertising," said Prenderville."Under the leadership of Amir and the team he and DDB have assembled, we are on the globaloffensive to drive great creative results for our brand."“Reebok is a fantastic brand and we are delighted with our partnership with Rich and his team,”Chuck Brymer, President and CEO of DDB Worldwide Communications Group Inc, said. “I amalso very proud of the partnership and creativity our DDB offices have once again demonstratedon behalf of a client.”Kassei, who is known for his work on such brands as Volkswagen and Ikea, noted, "There isgreat heritage and strength in the Reebok brand, and it will be a great honor and opportunity tocreate a clear, differentiating point of view for it on a global basis."Bibliography 1. Interview with Subhinder Singh Prem, MD Reebok India – published in the Economic Times, 11TH Feb 2010, Thursday. 2. www.reebok.com, http://corporate.reebok.com/en/news/2009/Reebok_Appoints_DDB.asp 3. U Magazine, January Edition.