Term Paper On

SUBMITTED TO:
Professor Dr. M. Mahmodul Hasan

SUBMITTED BY:
Golaper Kata

Course Bus 620

Section - 4
LETTER OF TRANSMITTAL
April 02, 2016

Professor Dr. M. Mahmodul Hasan

President of EMBA/MBA Program
School of Business,
North South University

Subject: Submission of Term Paper on Reebok

Dear Sir,
This is the term paper based on the topic Reebok as requested by yourself, is being
submitted to you as part of our group project to complete the course Marketing
Management for the semester Spring16. The report has been prepared keeping in mind
the topic and brand Reebok and covers the areas of Marketing Management, Business
Plan, Corporate and Marketing Strategies, SWOT Analysis, PESTEL, Marketing Mix,
Value Chain Model, TQM, Branding and Brand Elements along with 5Ms of Advertising.
We highly appreciate the advice, cooperation, patience, suggestions and encouragement
that you have given us in order to complete the report.

The Report is constructed by the group Golaper Kata

Please find the members name and student IDs given below:

Name ID Signature

TANZIRAL ZAHARA ZABIN 1520421660

MAFIA BEGUM MANILA 1521843060

NAZMUS SALEHEEN 1531206660

KISHOWER JAHAN 1611586660

ACKNOWLEDGEMENT
First of all, we would like to express our gratitude to Almighty Allah for keeping us
mentally and physically sound to prepare this report.
We are deeply indebted to our dear Faculty, Professor Dr. M. Mahmodul Hasan, and
President of EMBA/MBA Program; who assigned us such exciting topic and provided
direction in which the analysis needs to be accomplished. He also encouraged and
supported us throughout the course, especially for useful suggestions given during the
course of the project.
Finally, we take this opportunity to extend our deep appreciation to our family and
friends for all that they meant to us during the times of completion of our project.

EXECUTIVE SUMMARY
Reebok International Ltd. is a global athletic footwear and apparel company.[3] Reebok
produces and distributes fitness and sports items including shoes, workout clothing and
accessories, and training equipment.
The purpose of this research is to carry out the market analysis which includes the
Marketing Management, Business Plan, Corporate and Marketing Strategies, SWOT
Analysis, PESTEL, Marketing Mix, Value Chain Model, TQM, Branding and Brand
Elements along with 5Ms of Advertising.
We have primarily collected data through online browsing of different article and
journals and explained our results through various graphs and diagram.
As per the findings and analysis we have recommended Reebok that it can also explore
the segment of formal wear, where it is not present at all. Also, focus on finding the most
promising customers (kids and women) and introduce more products or improve
current ones to satisfy potential increase in demand. Keep expanding into current and
future foreign markets by being aggressive and the worldwide leader of the footwear
industry.

Contents
About Reebok...............................................................................................................................1
Early History................................................................................................................................1
 Highlights throughout the Journey..............................................................................................2
Product Lines...............................................................................................................................3
Marketing Management (Theory 2000 2010 & Theory 2011 2015).........................................4
Mission Vision Business Plan Corporate Strategy.................................................................6
Reeboks Mission.........................................................................................................................6
Reeboks Vision...........................................................................................................................6
Corporate Strategy.......................................................................................................................7
Business plan...............................................................................................................................7
SWOT Analysis...............................................................................................................................9
PESTEL ANALYSIS OF REEBOK..............................................................................................10
Michael Porters Five Forces:........................................................................................................11
Barriers to Entry:.......................................................................................................................11
Buyer Power:.............................................................................................................................12
Supplier Power:.........................................................................................................................12
Threats of Substitutes:...............................................................................................................13
Rivalry within Industry:.............................................................................................................13
Marketing Strategy:.......................................................................................................................14
Core Marketing Concept:..............................................................................................................14
Market Segmentation:....................................................................................................................15
Marketing Mix (7P) + 4C:.............................................................................................................16
The Seven P Components of the Market Mix............................................................................16
The 4C Components of the Market Mix....................................................................................17
Value Chain Model........................................................................................................................18
TQM (Total Quality Management) Loyalty Quality & Control...............................................19
Brand & Branding..........................................................................................................................20
Brand..........................................................................................................................................20
Branding....................................................................................................................................20
Brand and Branding Aspect of Reebok.....................................................................................20
Box Analysis of Brand Elements...................................................................................................22
Brand Elements..........................................................................................................................22
The Brand Dynamic Pyramid:.......................................................................................................24
Bonding:....................................................................................................................................24
Advantage:.................................................................................................................................25
Performance:..............................................................................................................................25
 Relevance...................................................................................................................................25
Presence:....................................................................................................................................25
Mass communication.....................................................................................................................27
a) Advertising budget and campaign cost:.................................................................................28
b) Sales promotion and budget..................................................................................................29
c) Events and sponsorships:.......................................................................................................30
d) Public relation (PR)...............................................................................................................31
e) Corporate Social Responsibility:...........................................................................................31
Marketing Budget & expenditure..................................................................................................32
Pricing strategies............................................................................................................................33
Recommendation...........................................................................................................................34
Conclusion.....................................................................................................................................35
References:....................................................................................................................................36
About Reebok
Reebok International Ltd. is a global athletic footwear and apparel company. Reebok
produces and distributes fitness and sports items including shoes, workout clothing and
accessories, and training equipment. Reebok is the official footwear and apparel sponsor
for UFC, CrossFit, Spartan Race, and Les Mills.

Early History
Reebok's history began way back in 1890, when a shoemaker named J.W. Foster
developed the first known running shoes with spikes, enabling athletes to run faster
than ever before.

HoopsVibe's Very Quick Call: The history of a sneaker company is a wild ride .

P a g e 1 | 38
Highlights throughout the Journey
In 1982, the company made a move that took the sneaker industry by surprise,
and sent sales through the roof. Reebok introduced the first athletic shoe for
women. This move helped Reebok grab the majority of the market share in the
early 1980s.
Then in 1989, Reebok introduced the Pump to the basketball world to take on the
Nike Air. These shoes were designed specifically with basketball in mind.
Reebok decided to look for endorsements as a way to increase brand awareness
when their sales started to decline during 90s and Nike took the top spot.
In 1996, they roped in NBA newcomer Allen Iverson as a target. From 1996 to
2000, Iverson and Reebok had a lot of success promoting the brand. With
Iverson quickly becoming an NBA superstar, his shoe which was known as The
Answer was selling at a fast pace and helping to bring Reebok back to the
forefront of the industry.
Then in 2005, during NBA All-Star weekend Reebok introduced the new ATR
(Above the Rim) Pump, this time the pump is located on the outer ankle of the
shoe. It again allows for the athlete to get a perfect fit. During the 2005 All-Star
game, NBA superstars Allen Iverson and Yao Ming showcased the ATR Pump to
the world. Shortly after the new ATR Pump debuted, Reebok was shook up once
again.
Late in 2005, they were bought out by Germanys Adidas-Salomon for $3.78
billion. The reason for this merger was quite clear in the sneaker
industry. Reebok and Adidas were constantly fighting out for second place behind
sneaker giant Nike. They felt that by joining forces, they may be able to overtake
Nike and become the number one sneaker manufacturer in the world. But they
still had a long way to go since in 2004, Nike had approximately 36% market
share in the United States shoe industry; whereas Adidas and Reebok combined
had about 21%.
From there on their main focus on Reebok was to establish it as a leading fitness
and training brand.

P a g e 2 | 38
Product Lines
The product line of a Reebok retail outlet generally consists of sports accessories. The
product line is divided into four sections:
1. Shoes
2. Apparels
3. Sports Equipments
4. Exercising/health products
5. Personal grooming

P a g e 3 | 38
Marketing Management (Theory 2000 2010 & Theory 2011
2015)

According to Marketing Management (Theory 2000 2011), Marketing

Management is the art and science of choosing target markets and getting, keeping,
and growing customers through creating, delivering, and communicating superior
customer value.
Reebok divided its potential customers into groups based on common sets of
characteristics, hobbies and professions to both male and female genders such as,
basketball players, hockey players, tennis players, dancers, trainers, yoga and etc.
Reebok has always made efforts to vibe with the customer for its apparel range as well,
that contributes 45 per cent to the companys turnover. According to consumers need
and requirements Reebok would innovate, create, and offer sport and fitness apparels
for both male and female genders whether they are for yoga, dancing and sports related
even for children. In this manner they have managed to conquer a huge consumer base
for each of the fitness and sport sections with superior taglines such as Be More
Human and I am what I am that creates inspirations and emotional communication to
the consumers which are more appealing.
Also according to Marketing Management (Theory 2012 2015 ), Marketing
management depends on the size of the business and the industry in which the business
operates. Effective marketing management will use a company's resources to increase its
customer base, improve customer opinions of the company's products and services, and
increase the company's perceived value.
Sportswear is a huge industry where Reebok
is one of the top players giving intense
competition to high end brands such as Nike,
Fila, Adidas, Puma and more. Hence, going
along with such high brands Reebok has
managed to keep their marketing intact
through interacting with consumers for its
apparel range and improve the quality and
product lines keeping in mind the needs and requirements of their customer base.

P a g e 4 | 38
They have even roped in top celebrities in their own field as brand ambassadors who are
themselves into fitness from the world of Cinema and Cricket such as in India, John
Abraham (who is known as the fittest Man in Bollywood), Nargis Fakhri who herself is a
fitness freak and M.S Dhoni. People look up to them and when such high profile
celebrities are endorsing the brand Reebok and using the apparels, it pursues people in
to using them too. Therefore, so far Reeboks marketing management has been going
well.

From Left to Right - John Abraham (Actor and Reebok India Brand Ambassador), Erick Haskell
(MD, Reebok India), Nargis Fakhri (Actress and Reebok India Brand Ambassador) and Somdeb
Basu (Brand Director, Reebok India)

P a g e 5 | 38
Mission Vision Business Plan Corporate Strategy
Corporate Plan Mission and Vision
Man Ass
age emb
Strategic Priorities men ly
t Secr
Boar etar
Business Plan

Define Objectives
d iat
Delivery
Man
ager
Annual Reports

Performance measurement
s

Performance Appraisal Staffs

Reeboks Mission
Challenge and lead the fitness world through creativity
At Reebok, we see the world a little differently and throughout our history have
made our mark when we've had the courage to challenge convention. Reebok
creates products and marketing programs that reflect the brand's unlimited
creative potential.

Reeboks Vision
Fulfilling Potential
Reebok is dedicated to providing each and every athlete - from professional
athletes to recreational runners to kids on the playground - with the
opportunity, the products, and the inspiration to achieve what they are capable
of. Everyone has the potential to do great things. As a brand, Reebok has the
unique opportunity to help consumers, athletes and artists, partners and
employees fulfill their true potential and reach heights they may have thought
un-reachable.

Corporate Strategy
Reeboks mission is to challenge and lead the fitness world through creativity and their
vision is to provide products to different athletes in order to help them achieve their
goals.

P a g e 6 | 38
Reebok has launched a global brand strategy to position itself as the worlds primary
fitness brand featuring sportsmen including Lewis Hamilton and cricketer MS Dhoni in
a campaign to support their desired direction.
The brand says the strategy was designed to change the way people perceive, define and
experience fitness and achieve Reeboks ambition to bring fitness to the world and be
seen as the worlds fittest company. Reebok has identified the fitness sector as a
significant opportunity and it hopes to own this space around the world.
The campaign, which includes a partnership with fitness program Cross Fit was
launched showcasing The Sport of Fitness has Arrived campaign.
Throughout its history and again today, Reebok's success has been based on its courage
to challenge convention: developing innovative products, creating new markets, and
creating the latest athletic style. Inspired by its roots in fitness, Reebok is a global sports
brand that is committed to empowering consumers to be fit for life.

Business plan
A business plan is a formal statement of business goals, reasons they are attainable,
and plans for reaching them.
Reeboks main focus and plan has always been to be the top player in sportswear
industry and even after Adidas acquiring Reebok in 2005, as part of the strategic
business plan was a clear indication of it by any means. Adidas and Reebok have taken
clear positions in the marketplace. While adidas is targeted at competitive sports with its
Sport Performance division based on innovation and technology, and towards the sports
lifestyle, fashion consumer with its Sport Style division, Reebok has become the fitness
and training brand for active and casual sports.
Their main focus and objective since has been to establish Reebok as the leading fitness
and training brand.
Even after its merger with Adidas, the Reebok brand has continued to execute its old
strategy, positioning itself focused on fitness and training. Based on its roots and
heritage in fitness/training, consumer insights and positioning within adidas group,
Reebok developed a clear path for its key businesses going forward: Own Womens
Fitness, Challenge in Mens Training/Sport and Revive classics. Unlike many other

P a g e 7 | 38
brands, Reebok is committed to make fitness fun again-challenging men and woman to
fulfill their potential in sport and in life by providing them with the opportunity,
products and inspiration to have fun staying in shape.

P a g e 8 | 38
SWOT Analysis
STRENGTHS
WEAKNESSES
1. Reebok is amongst the top 3 largest seller of athletic
footwear and athletic apparel in the world. 1.The brand faces tough problem from fake and
2. Reebok brings out the perfect combination of duplicate sales
technology and fitness each year in its products. 2. Being a popular brand means any controversy
3. New technology makes the firm to be able to make affects brand image considerably
better shoes.
3. Going for too many segments leads to company mot
4. Able to enter into different markets and gain market being able to handle all of them well, this may cause
share from it.. company to loss its market share in the long run.
5. Utilize market research and development trying to
find our consumers preference.
6. Reebok sponsors international teams, clubs, players
from all sports like football, cricket, basketball,
motorsport, etc

OPPORTUNITIES THREATS

1. The market is large, and the increasing demand is 1. Facing strong competition in the casual market as
expected. competitors products are trendy, fashionable, and
modern.
2. Lifestyle section can be expanded and can be given
more focus. 2. Rapid changes in technology and consumer
preference occurring in the footwear and apparel
3. More tie-ups with sports academies and schools
markets contribute to significant risk factors in the
worldwide
Companys operations.
4. Newer technology development or innovations can
help company to get more profit and market share on
its future sales.

P a g e 9 | 38
 PESTEL Analysis Of Reebok
POLITICAL
Controversial Advertisements are
always subjected to criticism by
politicians.
Provide training sessions to
employees as per standard
SOCIAL/SOCIO-CULTURAL
With change in lifestyle and increase
in income people tend to focus more
in fitness and therefore increase
consumption.
Focus on people who are into sports
anf fitness.
ECONOMICAL
Poor Economy would lead to lower
purchase and consumption of Reebok
products that might affect the sales
and market share.
Help countries decrease
unemployment rate.
TECHNOLOGICAL
Reebok spends a lot on their research
and development sector as well as
advanced technology would help to
improve quality of the products that
will lead to more sales and market
share in the long run.
P a g e 10 | 38
ENVIRONMENTAL/ECOLOGICAL LEGAL

Tackling challenges of climate change Risk of legal violation in terms of

human rights, environmental issues.
Waste disposal and recycle
Risk of contract manufacturers
copying of products.

Corporate Social responsibility

beyond legal obligation.

Trade agreement to safeguard

business operation.

{TANZIRAL ZAHARA ZABIN 1520421660}

Michael Porters Five Forces

SUPPLIER POWER:
Threat of forward
integration.
Supplier
concentration
Switching costs of
firms in the
industry.

BARRIERS TO THREATS OF
ENTRY: SUBSTITUTES:
Access to inputs Can be substituted
Access to except for athletic
RIVALRY shoes by normal
distribution
Switching cost BUYER POWER: sandals.
Brands identify DEGREE OF costs
Switching RIVALRY:
are
Government
Substitutes low.
Range of products
policies
Intellectual available Brand & customer
Product
differentiation P a g e 11 | 38
Buyers incentives
Buyer
concentration
versus industry
DEGREE OF RIVALRY:
Range of products
Brand image &
customer loyalty

Barriers to Entry
Access to inputs - Access to inputs is easy

Access to distribution - opportunities is limited because of the top brands which

have already recognized in market.

Switching cost - are low

Government policies - permitting and licenses are not that strict.

Intellectual property - Patents and other types of proprietary intellectual property

are effective in limiting industry entry.

Capital requirement with regard to start up capital, it may be little costly

because start up is labor and capital intensive.

Brand identify dominated by branded products and strong brand loyalty.

Buyer Power
Brands identify high end brands and large companies in the industry set prices
points for their products.

P a g e 12 | 38
 Substitutes available except athletic, orthopedic, dancing shoes all other types
can be substituted by normal sandals.

Product differentiation low

Buyers incentives seasonal sales offered by reputed brands and stores.

Buyer concentration versus industry buyers are less concentrated, reduces

buying power.

Buyer volume dont buy in large quantities.

Price sensitivity buyers are more sensitive to price.

Supplier Power
Major firms can switch suppliers quickly without worry of a significant decrease
in quality.

Threat of forward integration low due to high entry barriers.

Supplier concentration fragmented

P a g e 13 | 38
 Any supplier that meets quality standards for the company will be able to supply
these commodity goods.

Threats of Substitutes
Can be substituted except for athletic shoes by normal sandals.

Switching costs are low.

Rivalry within Industry

More of an emphasis on non-price competition.

Firms instead try to increase their range of products to capture more of the
market.

Brand image and customer loyalty is huge in this industry, which leads to the
brands competing in advertising.

P a g e 14 | 38
Marketing Strategy
Reeboks main advantage has been that it understood the consumer base very well and
has made an effort to grow alongside. For instance, when the company came to India, all
that the consumers wanted were an international brands of footwear and Reebok gave
them that at an affordable price." Today, with sports becoming fashionable, the bulk of
the sales come from the Rs 2000 to Rs 4000 segment compared to two years ago when
most of the sales would come from the Rs 1000 to Rs 2000 segment. One aspect to
Reeboks success has been its ubiquitous retail chain.

Core Marketing Concept

The fact cannot be denied that the athletic shoe brand market has been emerging to be
extremely competitive and a few brand names such as Adidas, Reebok, Nike, and Puma
have successfully captured certain market segments. These brands recognize the need to
retain their market position and work towards market growth in the process. Adidas and
Reebok, for the sake of exemplification have proven the fact that besides high quality

P a g e 15 | 38
products, a good market communication strategy and mix is vital for survival and
simultaneous growth in a market which is constantly driven by a competitive
atmosphere.

Market Segmentation
Market Segmentation involves aggregating prospective buyers into groups that have
common needs and will respond similarly to the marketing strategy.
It plays a key role in the marketing strategy. When considering market segments, reebok
considers the following group:
1. Athletes runners, aerobics, dancers, tennis players, basketball players and etc.
2. Non Athletes comfort and style; conscious walkers and children.
Please note, that for Reebok the primary market group is Athletes. Therefore,
according to this information the best segmentation for Reebok is Demographic
Segmentation.
Firstly lets talk about Age segmentation, as the key consumers would be athletes
who are players and dancers which indicates that they will be mostly young
people focused on their fitness and includes people belonging to schools, college,
universities and young executives. The age varies from 10-15, 18-25 and 26-33.
Secondly, gender segmentation as Reebok distributes products as per
requirement of both male and female. Reebok designs different shoes, clothing
and accessories based on male and female genders. For example, the shoes made
for male gender are mostly black and blue with leather and male centric design.
However, the shoes for female are mostly in pink, purple and white with more
feminine design.
Other segmentations that are required for Reebok are Benefit segmentation and
wage rate segmentation. It is very important for marketers to analyze variables
such as, the degree to which the products will be beneficial t the consumers and
frequency of using it. Reebok has always produced shoes and accessories keeping
in mind its target consumers and how it will benefit them.

P a g e 16 | 38
 Marketing Mix (7P) + 4C

Marketing mix:
Winning companies will be those who can meet customer needs economically
and conveniently and with effective communication.
The marketing mix of Reebok has a focused market. It also has been campaigning
on the product, price, promotion, place, people, process and physical evidence.

The Seven P Components of the Market Mix

Target

Marketing Mix
PHYSICAL
Appearance
PRODUCT of the sports
apparels
Product PROMOTIONN
Variety PRICE PLACE PEOPLE PROCESS
Quality
Design Online
List Promotion Channel Dynamic peoples
Features service
Price Advertising s behind Reebok
Brand Physical
Discoun Sales Force Coverag brand and its
Name
ts Public e diversity
Packagin
Allowan Relations Assortm The diversified
g
ces Direct ent customers such as
Sizes
Paymen Marketing Location yoga, sports,
Services
t basketball players,
Warranti
COMMUNICATIONS
CLIENTS COSTS
Such as rising
Fitness will before
be the dawn for extreme
key driver exercise sessions-
in lifestyles, and The costs of CONVENIENCE
giving money in exchange of the
ultimately
Reebok ishelps people make
undoubtedly thegreater
fitnesscontributions to their
enabler in the apparels they will get for their fitness.
The 4C Componentsof Physical stores
the Market
families and communities. Much of the work focuses on the
country. To inspire all the concerned area of sports Mix
rapidly growing tough fitness category where the brand
and Online service
hasfitness sections
established such
a strong as runners,
presence throughsport
dealsplayers,
with high
dancers
intensity and yoga.
workout According
firm to their
CrossFit and needs and
the grueling, muddy
wants the apparels are offered.
Spartan Race.

TARGET P a g e 17 | 38
MARKET
 {MAFIA BEGUM MANILA 1521843060}

Value Chain Model

FIRM INFRASTRUCTURE: Talented top management, cost advantage, high liquidity.

HUMAN RESOURCE MANAGEMENT: Performance culture, training framework (PEAK)

SUPPORT
MARGIN
ACTIVITIES
P a g e 18 | 38
 TECHNOLOGY DEVELOPMENT: Higher sale though ecommerce, ongoing develop technology
product.

PROCUREMENT: Flexible Make-to -Stock, buffer and safety stock in hand.

INBOUND OPERATIONS: OUTBOUND MARKETING & SERVICE:

LOGISTICS: LOGISTICS: SALE:

1. Outsource 1. Use automate in 1. Good supplier 1. Emphasis on 1. Product

Non-core production process. Relationships. Spot event, quality

Activities. Product features.

And online stores. MARGIN
2. Using 2. Quality control. 2. Fast and timely
Sustainable logistics system. 2. Huge Customer
And recyclable base.
Material.

PRIMARY ACTIVITIES
Figure: Value Chain Model

TQM (Total Quality Management) Loyalty Quality & Control

Total quality management (TQM) is an organization-wide approach to continuously
improve the quality of all the organizations processes, products, and services. Product
and service quality, customer satisfaction, and company profitability are intimately
connected. TQM ran into implementation problems as firms became overly focused on
how they were doing business and not the why they were in business.

P a g e 19 | 38
As it relates to the strengthened bond between Reebok employees and the CrossFit
brand they are trying to enhance and promote, It was impressive step taken that how
Reebok apparel and footwear experts actively seek feedback from the CrossFit athletes.

Part of this is explainable from the simple perspective that Reebok is new in the CrossFit
world, and as such, must rely on the expertise of the competitive CrossFit athletes to
gauge elements of style and fit.

But because Reebok has invitingly welcomed CrossFit trainers into their suburban
Boston headquarters as full-time Reebok staff, the individuals responsible for designing
the apparel and footwear have a firsthand perspective of how to maximize the usefulness
of the products they ultimately sell to CrossFitters and other fitness consumers alike.

Brand & Branding

Brand
A traditional definition of a brand: the name, associated with one or more items in the
product line, which is used to identify the source of character of the item(s) (Kotler,
2000). The American Marketing Association(AMA) define a brand as a name, term,
sign, symbol, or design, or a combination of them, intended to identify the goods and
services of one seller or group of sellers and to differentiate them from those of
competitors.

P a g e 20 | 38
Branding
Branding is endowing products and services with the power of a brand. Its all about
creating differences between products. Marketers need to teach consumers who the
product is by giving it a name and other brand elements to identify it as well as what the
product does and why consumers should care, Branding creates mental structures that
help consumers organize their knowledge about products and services in a way that
clarifies their decision making and in the process, provides value to the firm.

Brand and Branding Aspect of Reebok

Reebok mostly brands itself as specializing in exercise and fitness. Cross Fit is their
main selling point, as it provides everybody with a chance to compete and perform in
the activity no matter what the age. They realized the market for the ever-expanding
fitness craze was there for the taking and they seized the opportunity. Being as many
people do not know of Cross Fit competitors, they realized they needed somebody to
represent their image that had similar objectives. This is where Reebok signed Ronda
Rousey and Jon Jones. Both of these people are fighters in the UFC and Reebok realized
that the same training that the fighters of MMA do compares to the training of many
fitness and Cross Fit participants.

Reebok has been a major fitness brand for long time now and they choose to concentrate
only on that. Even though it is an American-inspired global trend, it has gained success
in Indian market as well. Since Indians have become equally conscious about being fit
and active, sports brands have become a big hit in India too.
Tracing back into their history, Reebok has always focused on new comfort innovations
for people. Thus, even if people are doing their daily runs or playing sports, the Reebok
sports gears do not disappoint them.
Reebok dedicates to make fun products unlike other sports brands leaving people with a
plethora of options to choose from. Their slogan Fit for Life surely does spark and rub
inspiration into people.
Recently also Reebok changed their logo, the new logo coincides with the brands
singular focus on fitness. It endorses a specific set of activities training, running,
outdoor, yoga, dance and aerobics as specified in the press release - that Nike and

P a g e 21 | 38
Adidas are not placing as keen a focus on. The new logo Reebok Delta has three distinct
parts each representing the changes physical, mental and social.

Figure: Reebok Logos and new Logo launching

Reebok is strongly been placed in Indian markets. There are so many Reebok products
that have been instantly picked up by the people no sooner did it hit the market. The
exclusive Reebok Originals showrooms that have recently opened in the cities have
already created a buzz among the people (Lima Aier, 2014).

Box Analysis of Brand Elements

Brand Elements
Brand elements can be chosen to both enhance brand awareness and facilitate the
formation of strong, favorable, and unique brand associations (Keller, 2003). A number
of broad criteria are useful for choosing and designing brand elements to build brand
equity (Keller, 2003): (1) memorability, (2) meaningfulness, (3) aesthetic appeal, (4)
transferability (both within and across product categories and across geographical and
cultural boundaries and market segments), (5) adaptability and flexibility over time, and
(6) legal and competitive protectability and defensibility. Each brand element will have

P a g e 22 | 38
its own strength and weakness. Key to brand equity is the mixture and balance between
the different elements in their verbal and visual context to maximize their collective
contribution (Keller, 2008):

Figure: Brand Elements

Offensive Role Defensive Role

Memorability Transferability
Meaningfulness Adaptability
Likability Protectability
On the offensive side, to build brand equity, brand elements should be memorable and
distinctive, easy to recognize and easy to recall the sticky factor. Secondly, brand
elements need to be meaningful to convey the descriptive or persuasive content. It
means whether the customer is able to identify the right product category as well as
whether the brand element is credible in this product category. Hence, the descriptive
dimension is a determinant of brand awareness and salience. Persuasive in this context

P a g e 23 | 38
 Memorability Transferability

Reebok Reebok

How easily consumers recall and How useful is the brand element for line or
recognize the brand element category extensions

Reebok brand name is very much Reebok has developed a roadmap which
memorable targets the women and kids sports, Revive
classics, challenge Mens sports, Develop a
variety of products.

Meaningfulness Adaptability

Reebok

Brand elements may take on

descriptive or persuasive
meaning

The new Reebok Delta symbol

represents the positive and
transformative change that
fitness can have on a persons
life.

Likability Protectability

Reebok Reebok

Do customers find the brand Brand elements that can be legally

element aesthetically appealing protected internationally

Reebok is a well-recognized international

Reebok and that it endorses a brand and doing business over 100 years so
specific set of activities its well protected brand.
training, running, outdoor,
yoga, dance and aerobics their
products cover all these sectors
and its a very much likable to the
consumers.

P a g e 24 | 38
 Box Analysis of Six Brand Elements

Means a determinant of brand image and positioning. It is the specific information

about particular key attributes and benefits of the brand. This could even reflect brand
personality. Last offensive criteria, likability, reflects aesthetical appealing like the brand
style and brand themes (Keller, 2008). On the defensive side, to maintain brand equity,
brand elements should be transferable in such a way that they can cover more than one
product, product line, market segments, geographic boundaries, markets and cultures.
Secondly, brand elements need to be adaptable and flexible in time to remain relevant.
Protectability is the last defensive criterion and considers the legal and unauthorized
competitive infringements of the brand (Keller, 2008).

The Brand Dynamic Pyramid:

The brand pyramid is a model that illustrates the steps by which a customer establishes
loyalty to a particular brand. The model can be visualized as an inverted pyramid with
five levels. As one moves up the pyramid, from the narrow point to the broad base,
customer loyalty increases in direct proportion to revenue potential. Different sources
refer to these levels by different names, but they remain the same in essence.
The pyramid, as shown, illustrates the five key stages that customers go through with a
brand, starting with basic awareness and finishing with complete loyalty.

Bonding:
Here, customers have established a bond with the brand. They've determined that cost,
advantage, and performance are all at levels that they're happy with.
They've also formed a strong emotional attachment to the brand; the brand has become
an integral part of their self-image, and helps represent who they are. This, in turn,
encourages them to exclude other brands in favor of this one.
Customers at this level are also likely to be vocal advocates of the brand, which helps
build further awareness within their family, social, and professional circles.

P a g e 25 | 38
Advantage:
At this level, customers have determined that there is a distinct advantage to using the
brand, compared with others. They're also beginning to associate the brand with their
emotions and with their sense of self.

Performance:
Here, customers begin comparing the brand with others, to see whether it delivers on its
potential.
They're also starting to associate the brand with a specific identity, and they're
beginning to recognize it and associate with it. By now, the brand is on the customer's
"short list" of brands to choose from.

Relevance
At this level, customers start to think about whether the brand meets their wants and
needs. It's here that they begin comparing the cost of your products with respect to the
value these provide.
Customers begin asking questions like:
"Does this brand fit my needs?"
"Is it in the right price bracket for me?"
"Is it worth it?"

Presence:
At this level, customers are aware of your brand, but little else. They may have tried your
products and services before, but they have little or no emotional attachment to them.

P a g e 26 | 38
 The Brand Dynamic Pyramid of Reebok

BONDING
(REEBOK) STRONG
The company was founded in
RELATIONSHIP
1895 more than 100 years,
therefore customers has create
stronger relationships with
Reebok and also formed a strong
emotional attachment to the
brand.

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE

WEAK
RELATIONSHIP

{NAZMUS SALEHEEN-1531206660}

P a g e 27 | 38
Mass communication

The objective for mass communication is to build awareness and create engagement
with consumers. We will use various tools and Medias to communicate with Reeboks
target audience.
Awareness Engagement

Television (TVC) Television

Print (Newspapers, Magazines etc.) YouTube

Out Of Home advertising (Billboards) Facebook

Online Banners Instagram

Pre-rolls (YouTube video commercials) Twitter

PR Buzz

For our communication route we are going to go with Reeboks recent tagline Be more
human. In this campaign they adopted a more humane approach to urge their
consumers to live up to their full potential. It is the culmination of Reeboks re-branding
campaign that started roughly five years ago and includes the creation of a new symbol
(the Reebok Delta), strategic partnerships with vigorous events (i.e. Spartan Race) and
combat sport athletes (i.e. Jon Jones and Johny Hendricks) as well as the Ultimate
Fighting Championship, and new footwear and apparel that caters to the fitness fanatic.
A major part of Reeboks recent growth is a commitment to CrossFit, which has catered
to a massive number of fitness oriented individuals. Fortunately for Reebok, there is an
emerging base of consumers for the type of tough fitness mentality that Reebok has re-
focused on persuading.
Storyline
Since Reebok symbolizes a fit lifestyle, tough attitude and strength, in our
communication we will feature famous sportsmen/women from all genres. We will show

P a g e 28 | 38
Dhoni from Indian cricket team, Michael Phelps as he is a world renowned swimmer,
Maria Sharapova the famous tennis player, Gerrard from the football scene. We will
show how hard these players work to be who they are and to be successful in their field.
We want to portrait the humane side of these players to inspire and motivate our
audience that hard work and determination makes it possible to achieve ones dreams no
matter how difficult it is. All our communications including TVC, social media videos,
campaigns and print ads will be based on this storyline.
a) Advertising budget and campaign cost:
In this budget we will include TVC and video production cost, billboard and print ads
designing cost and banner ads and media buying costs.
An annual timeline of our advertising campaign is given below:
Media 1st quarter 2nd quarter 3rd quarter 4th quarter
Online banner
ads
Mobile app
banners
YouTube
channel/pre-
rolls
TVCs
TV show
sponsorship
Event
sponsorship
Newspaper ads
Magazine
Billboards
Online
promotional
contests
An estimated budget for the above mentioned campaigns is given below:

Media 1st quarter 2nd quarter 3rd quarter 4th quarter

Online banner 10,000 10,000 10,000 10,000
ads
Mobile app 15,000 15,000 15,000 15,000

P a g e 29 | 38
banners
YouTube 100,0000 100,0000
channel/pre-
rolls
TVCs 700,0000 700,0000
TV show 500,0000 500,0000
sponsorship
Event 300,0000 300,0000
sponsorship
Newspaper ads 200,000 200,000 200,000
Magazine 250,000 150,000 200,000
Billboards 200,000 300,000
Online 10,000 10,000 10,000
promotional
contests
Total 34,270,000
USD

b) Sales promotion and budget

Our marketing plan includes various stores driven sales campaigns and online
campaigns to increase engagement with our consumers. The Medias used for these
promotions will be social media platforms such as Facebook, YouTube, twitter,
instagram, online banners. Our plan is to develop a successful digital media campaign
that will generate traffic to their website and stores resulting in increasing sales.
Keeping in line with our initial campaign Be more human we can arrange contests
where people can meet the famous players, or we can feature the aspiring contestants on
social media platforms.
An annual budget for sales promotion is given below:
Media 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Online Media $20,000 $20,000 $20,000 $20,000
buying
Celebrity $100,0000
endorsement
In store $10,000 $10,000 $10,000 $10,000
promotions
Additional $5,000 $5,000 $5,000 $5,000

P a g e 30 | 38
costs

Total 1,135,000 USD

c) Events and sponsorships:

To cater to its major market sports playing people, Reebok had sponsored many sports
both internationally and nationally. The company had tie-ups with various sports for
providing apparel, footwear and cricket equipment. Reebok has 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 - Indias 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.
We would suggest creating more affiliations with under privileged teams and womens
sports teams to spread Reeboks name in the root level of sports.

d) Public relation (PR)

Maintaining a good PR is very important especially when you are a billion dollar
Multinational Corporation. Reebok has its own PR department that handles all its
communications both online and offline. Our plan is to communicate about the aspiring
heroes from our online campaigns and their life stories through online blogs, articles
and webs. This way we can highlight what role reebok is playing to boost people in their
daily lives.

e) Corporate Social Responsibility:

Reebok pays special attention to workers rights to freedom of association, both because
it is a core labor standard but also because the company believes that informed,
empowered workers can be the most effective defenders of workplace rights. In China
Reebok began an elections experiment in 2001. This has shown that despite restrictions

P a g e 31 | 38
on freedom of association, elections of worker representatives are possible within the
countrys legal framework. This involves (not uncontroversial) cooperation with the All-
China Federation of Trade Unions. In 2006 Reebok plans to carry out evaluations of
worker participation projects in Chinese factories.
The issue of human rights is a priority that requires the engagement of the business
community, but it also requires activism. In this respect Reebok goes further than most
companies. Every year Reebok celebrates human rights defenders through its Human
Rights Award, its Young Activist Program and other initiatives. In 2005 one of its
US$50,000 award recipients was 23 year old Charm Tong who fights for the rights of
ethnic groups in Myanmar, particularly the Shan people. She co-founded a network of
human rights monitors on the Thailand-Myanmar border, established a school for
young refugees and helped to bring to light violence against the ethnic women by the
Myanmar military.
In Asia Reebok has also supported womens rights projects in Cambodia, labor rights
projects in Thailand, China and Indonesia as well as providing support for refugees and
victims of trafficking.
The Reebok Report notes that it is not always simple or easy to address human rights
issues in a business setting, but it is always well worth the effort. As more companies are
engaging in human rights issues then the more we can convince others to take on the
challenge of engaging with the issues. With its increasing power in a world of
globalization business has a duty to do this and should not shy away from international
obligations so to do. The more that business does, the more we can help those who lack
the freedoms enjoyed by many of us.

Marketing Budget & expenditure

In August 2005 Adidas bought Reebok for 3.8 billion dollars and turned it around. Now
Reebok itself has billion dollars marketing budget and sales has increased satisfactorily.
Reebok is mostly popular is European regions. Their latest marketing budgets of the
previous years are given below:

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First quarter net sales development by segment
1) MEAA includes Middle East, Africa and other Asian markets.
2) Rounding differences may arise in totals.

Pricing strategies

Reebok follows the common pricing strategy. Their main aim is to survive and grow in
the market. But as such Reebok follows maximum market skimming strategy. Whenever
Reebok unveils a new technology in market they set a high price for it. Reebok starts for
such products with high prices and then slowly drop prices over time. As Reebok can
sense that whenever they launch a product they have sufficient number of buyers for
that product and Reebok keeps the price high so that they are able to control the

P a g e 33 | 38
demand, earn more profit and communicate to buyers with high price that the product
is superior. Reebok usually follow skimming strategy but when it entered into the
apparels and other accessory market in India it followed penetrating pricing, i.e. Reebok
set low prices for apparels to attract the customers at the start to an introductory price,
and as the products became more popular the prices were raised to a normal level.
Companies usually set their prices to stay ahead in the market.
The biggest challenge in front of a company is to produce quality products at even lower
prices and break the existing price barrier. The company has brought down its entry
level price from around $20 a few years ago to $15 now. And, of course, Reeboks
research and development centers abroad are working to break new price barriers. For
that, company is also experimenting with new mediums which will supplement his
already large advertising budgets. The focus now is to leverage social websites and offer
consumers knowledge about its products. One idea which has been floated is to set up
Reebok Clubs across websites where people can exchange notes on fitness and Reebok
products, and give their independent opinion. The company feels it can extract more
value this way than from an advertising campaign. But different markets and segments
have different requirements and aspirations from a sportswear or lifestyle brand.
Data shows that consumers are changing their old pair of shoes much faster than before.
Middle-class buyers now change their footwear every three months, down from 8 to 12
months earlier. And at the lower end of the market, consumers are changing once in
every 15 months compared to three years earlier. So Reebok launches over 42 SKUs
every month and at least a new footwear technology every two months.

Recommendation

Reebok has been very cleverly playing its marketing strategy for last few years. It has
been segmenting its market very precisely and then aggressively promoting their
products specifically to that segment. For example, Womens segment or kids segment.
Recently, it has launched reetone category specifically for women. In terms of price as
well, Reebok has been offering its products at different price levels for different targeted
segments. Its products range from $15 onwards. Thus, it tries to cover everyone from
mass to class. Reebok has also expanding its apparels section now along with shoes,

P a g e 34 | 38
which is gaining popularity day by day. In 1990s, Reebok stores were only present in
metros, however, nowadays; it has opened its stores in remote areas as well. Also, in
metros, it has opened its specialized stores as womens, kids, apparels or shoes stores.
Reebok has also tied up with many strategic channels in India to promote its brands at
different levels, which helped it to grow its market in urban as well as rural areas.
In conclusion, Reebok has been expanding its products categories, price range, and
geographic presence and promotion channels over the last decade. Despite being
acquired by Adidas, Reebok brand has been growing at a good pace. The above
strategies have been very successful till now and we recommend Reebok to continue
doing these things.
In addition, Reebok can also explore the segment of formal wear, where it is not present
at all. With growing Indian economy and large number of working people, Reebok can
very well tap this market. Reebok has already established its brand in the market and it
can leverage its brand to enter in new segments. Also, Reebok should promote Indians
more to go for physical exercises, for which may be it can announce monetary incentives
as well, such as Discount coupons at Reebok outlets if one loose n KGs of weights in n
number of days. Thus, we recommend Reebok to continue expanding its reach in new
areas, geographies, segments and cover the whole class as well as mass.

Conclusion

Conclusion Focus on finding the most promising customers (kids and women) and
introduce more products or improve current ones to satisfy potential increase in
demand. Keep expanding into current and future foreign markets by being aggressive
and the worldwide leader of the footwear industry. Accelerate funding for numerous
marketing campaigns in order to get to specific markets or customer groups Focus on
improving working conditions and human rights at international manufacturer centers
and at the same time increasing their productivity Implement product diversification
with companys newest technologies.

{ KISHOWER JAHAN 1611586660}

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\

Appendix

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P a g e 39 | 38