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Reebok Stores

Reebok reaches out to its target customer through its 1000+ exclusive stores,
200+ shops in the shop outlets & 2500+ dealer outlets. The footwear provides
a range of footwear such as for adventure, basketball and casual and cross
training. The Reebok franchise also has shoes for Running, soccer, Tennis,
Walking and basic sandals for the men. The clothing and footwear franchise
has its apparel section for the women and men.

Reebok India’s footwear and athletic apparel market share was 54 percent as
2009 came to close, up from 51 percent the year before. That’s a far cry from
Reebok’s United states numbers. The company was the first to introduce
women’s athletic shoes in 1982 and once enjoyed a dominant share of that
market. The company had just a 2 percent share of the women’s footwear
market in 2009, down from an almost 9% share just two years ago. Reebok
was purchased by German sportswear giant Adidas in 2006 as the companies
sought to catch U.S. market leader Nike.

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Store selection strategy

The sportswear giant is targeting a bigger share of both the lower and upper
ends of the market.

Reebok had some time back hired an international agency to help it identify
locaters for its stores on the basis of income pockets. The agency devised a
plan that looked good on the paper. Divide each city according to the postal
codes.

The assumption was that people covered by one past office would have
somewhat similar incomes. Within no time it was proved that the formula will
not work. The greater kailash post office in New Delhi for instance, is a high-
income neighbourhood but also includes the mid-income locality of
Zamroodpur. Should Reebok them put up a store there or not?

For Reebok the company’s largest seller of sportswear and apparel, this is a
challenge it has to wrestle with every day. It wants to become a mass-market
brand, and the location of stores hold the key to that. This, mind you is not the
first time that its market research and assumption have gone away.

When it first entered India in the early-1990s, it had assumed that every car
owner could be a potential buyer for expensive Reebok sneakers. It proved to
be gross overestimation of the market potential. Little did it realise that cars
were brought on instalments here, and a large number of drivers didn’t own
the cars

Details Of the Three Store Visits:


Store I

Reebok has a showroom at pacific mall, Ghaziabad. There was an ongoing sale
for the whole month of January at flat 40%. The offers are all decided by the
company and held across Delhi and NCR at the same time.

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Store II

Reebok has also a showroom at south extension part 1, South Extension. The
customer are generally the young people and mostly the colleges people

Store III

Reebok has launched its largest exclusive store at Jubliee Hills, Hyderabad in
september2007.

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Marketing Challenges
Reebok had some time back hired an international agency to help it identify
locations for its stores on the basis of income pockets. The agency devised a
plan that look good on paper. Divide each city according to the postal codes.
The assumption was that people covered by one post office would have
somewhat similar incomes. Within no time it was proved that the formula will
not work. The greater kailash post office in New Delhi, for instance, is a high
income neighbourhood but also include the mid-income locality of
Zamroodpur. Should Reebok put there a store there or not?

For Reebok the country largest seller of sportswear and apparel, it has to
wrestle with this challenge everyday. It wants to become a mass-market brand,
and the locations of stores hold the key to that. This is not the first time that its
market research and assumption have gone away. When it first entered India
in the early 1990s. It had assumed that every car owner could be a potential
buyer for expensive Reebok sneakers. It proved to be a gross overestimation of
the market’s potential. Little did it realise that cars were bought on instalment
here, and a large number of drivers didn’t own the cars-these were provided
by the office.

But it has got over the initial hiccups. Though fourth in the global sweepstakes
after Adidas, Nike and Puma, it leads the pack in India with a 53% share of the
branded sports footwear market .

Mass vs class

Detractors and competitors, however, say that the company’s strategy may
take the sheen off the brand “You can’t be prestigious brand and at the same
time sell it for under Rs1,000. Also you will compromise on quality and these
shoes are known for their performance. You can’t be both a mass as well as
class brand

Reebok is aware of the challenge. One way to overcome it is to segment the


market, and have sub-brands for each segment. For instance, Reebok has

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Created a segment for health- and figure-conscious women. It has launched
Easytone footwear which promises to help tone the legs and butt. These are,
of course, global products launched recently and available at stiff price starting
from Rs4,999 Similarly, to carter to the fashion-conscious, Reebok has tied up
with designer Manish Arora for the fishy fry range. It’s a small market but if
offers a style statement and that gives the brand an extra dimension.

Reebok recently found that people above the age of 60 prefer to use sandals
in their morning walk with friends. The company caught on to the potential
when he saw his father and his friends not using sports shoes while walking in
the morning.

For the mass market, Reebok has bonded well with the cricket. It has set up
exclusive cricket stores which stock pads, wickets and other cricketing gear. It
has extended its sponsorship with kolkata knight Riders by opening an
exclusive store in Kolkata which sells KKR merchandise. As many as nine
players in the Indian cricket team use a Reebok bat. It has benefited from tying
up with cricketers much before they become stars.

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