PREFACE

Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected HOD Dr.Pramesh Gautam, Head of Department of Business Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY, SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of Mr. Ankur Gautam she rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.
SHAILENDRA PANDEY B.B.A. III SEM.

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected , Head of Department Dr.Pramesh Gautam, Department of Business Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of He rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

SHAILENDRA PANDEY B.B.A. III SEM.

DELCLARATION BY THE CANDIDATE

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Date : I declare that the project report titled " A STUDY ON MARKET SHARE OF REEBOK" on Market Segmentation is nay own work conducted under the supervision of Mr. Ankur Gautam Department of Business Management , SWAMI

VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR To the best of

my knowledge the report does not contain any work , which has been submitted for the award of any degree , anywhere.

SHAILENDRA PANDEY B.B.A. III SEM.

CERTIFICATE
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The project report titled

" A STUDY ON MARKET

SHARE OF REEBOK" been prepared by SHAILENDRA PANDEY BBA III Semester , under the guidance and supervision of MR. ANKUR GAUTAM for the partial fulfillment of the Degree of B.B.A.

Signature of the Supervisor

Signature of the Head of the Department

Signature of the Examiner

TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Certificate Acknowledgement Objectives Executive summary Introduction Research methodology Company Profile Finding and Analysis Suggestion and Recommendation Bibliography Questionnaire

INTRODUCTION TO REEBOK

Reebok is an American-inspired, global brand that creates and markets sports and lifestyle products built upon a strong heritage and authenticity in sports, fitness and womens categories. The brand is committed to designing products and marketing programs that reflect creativity and the desire to constantly challenge the status quo.

REEBOK'S 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. We all have 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.

REEBOK'S MISSION
Always Challenge and Lead through Creativity

At Reebok, we see the world a little differently and throughout our

history have made our mark when weve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brands unlimited creative potential.

REEBOK'S POSITIONING
Celebrate Individuality in Sport and Life

Reebok understands that people are, above all, unique. Reeboks 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. While some may call them crazy or eccentric, Reebok calls them visionary and original.

REEBOK'S PURPOSE
To Empower Global Youth to Fulfill their Potential Commitment to Corporate Responsibility is an important legacy and hallmark of the Reebok brand. For two decades, Human Rights, through the Reebok Human Rights program, was the primary focus of this effort. Reebok has expanded on what had been built and created a Global

Corporate Citizenship platform with a purpose for the brand that will help underprivileged, underserved youth around the world fulfill their potential and live healthy, active lives.

REEBOK'S BRAND TERRITORY

Having Fun Staying in Shape Having Fun Staying in Shape comes to life through a fun, bold, provocative manner expressed through fresh, eye catching imagery signed off with a unique 'Reeword.' The tone and manner allows the consumer to look at sport and lifestyle through our lens of 'Ree.'

Brands
Reebok International Rock Port RBK CCM Hockey (Worlds largest) Greg Norman Apparel

 Ralph Lauren Brand The Hockey Company Avia Onfield Apparel Athletic footwear DMX2000 3D Ultralite Ralph Lauren Apparel line

PRODUCTS

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HISTORY OF REEBOK
1890-1930's J.W. Foster and Spikes of Fire Reebok's United Kingdom-based ancestor company was founded for one of the best reasons possible: athletes wanted to run faster. So, in the 1890s, Joseph William Foster made some of the first known running shoes with spikes in them. By 1895, he was in business making shoes by hand for top runners; and before long his fledgling company, J.W. Foster and Sons, developed an international clientele of distinguished athletes. The family-owned business proudly made the running shoes worn in the 1924 Summer Games by the athletes celebrated in the film "Chariots of Fire. 1950-1980 A Gazelle Named Reebok, A Company on the Move In 1958, two of the founder's grandsons started a companion company that came to be known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok shoes at an international trade show. He negotiated for the North American distribution license and introduced three running

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shoes in the U.S. that year. At $60, they were the most expensive running shoes on the market.

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1980's By 1981, Reebok's sales exceeded $1.5 million, but a dramatic move was planned for the next year. In 1982, Reebok introduced the first athletic shoe designed especially for women; a shoe for a hot new fitness exercise called aerobic dance. In the midst of surging sales in 1985, Reebok completed its initial public offering (stock symbol is NYSE: RBK). In the late 1980s, Reebok began an aggressive expansion into overseas markets and Reebok products are now available in more than 170 countries and are sold through a network of independent and Reebok-owned distributors. 1990's In 1992, Reebok began a transition from a company identified principally with fitness and exercise to one equally involved in sports by creating several new footwear and apparel products for football, baseball, soccer, track and field and other sports. That same year, Reebok began its partnership with golfer Greg Norman, resulting in the creation of The Greg Norman Collection. 2000 In 2000, Reebok and the National Football League announced an exclusive partnership that serves as a foundation of the NFLs consumer products business. The NFL granted a long-term
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exclusive license to Reebok beginning in the 2002 NFL season to manufacture, market and sell NFL licensed merchandise for all 32 NFL teams. The license includes on-field uniforms, sideline apparel, practice apparel and an NFL-branded footwear and apparel collection. 2001 In 2001, Reebok formed a long-term strategic partnership with the National Basketball Association under which Reebok designs, manufactures, sells and markets licensed merchandise for the NBA, the Womens National Basketball Association (WNBA) and the National Basketball Development League (NBDL), the NBAs minor league. Reebok also had exclusive rights, with limited exceptions, to design, manufacture, market and sell headwear, Tshirts, fleece and other apparel products for all teams in most channels of distributions. In 2006, Reebok transferred the NBA rights to the adidas Brand.

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2002 In 2002, Reebok launched Rbk a collection of street-inspired footwear and apparel hook-ups designed for the young man and woman who demand and expect the style of their gear to reflect the attitude of their lives: cool and edgy, authentic and aspirational. Inspired by street fashion, Rbks marketing is culturally relevant as well. 2003 2003 was a landmark year for Rbk. Reebok formed an unprecedented partnership with rap musician Jay-Z, which included the design and marketing of the "S. Carter Collection by Rbk," which launched in April. With the partnership, Jay-Z became the first non-athlete to have a signature athletic footwear collection. 2004 In 2004, Reebok became the worlds leading producer of hockey apparel and equipment with its acquisition of The Hockey Company. The Hockey Companys brands, CCM, Koho and Jofa, are among the most respected in the sport. Reebok has a long-term licensing agreement with the National Hockey League, under which the company serves as the supplier of authentic on-ice game jerseys to all 30 NHL teams.

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2005 In early 2005, Reebok launched Rbk Hockey, a new and innovative line of ultra-high performance hockey equipment, sticks and skates and signed hockey phenom Sidney Crosby, who has lived up to his billing as the leagues next great player. In two short years, Rbk Hockey has become one of the most visible and in-demand hockey brands on the market.

In 2005, Reebok launched its largest global integrated marketing and advertising campaign in nearly a decade. "I Am What I Am" is a multi-faceted campaign which links all of the brand's marketing and advertising efforts under the "I Am What I Am" umbrella.
2006

In January 2006, adidas-Salomon AG acquired Reebok, forever altering the worldwide sporting goods industry landscape. Fireman got his start working for his family's fishing tackle business. Hes sold fitness giant Reebok to Adidas for $3.8 billion .Shortly after the close of the acquisition, Reebok Chairman and CEO Paul Fireman announced he was leaving the company to pursue other interests, and Paul Harrington was named President and CEO of the Reebok brand.

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2007 Reebok launched Run Easy, one of the most comprehensive running campaigns in the brands history. The goal of the campaign was to inspire consumers around the world to fulfill their potential and celebrate their individuality. In addition, Reebok's partnership with the National Hockey League took center stage with the unveiling the Rbk Edge Uniform System, a complete, team-wide redesign and re-engineering of the NHL uniform, and the opening of the NHL Powered by Rbk retail store in New York City. Reebok also launched its "There are Two People in Everyone" marketing campaign for the second half of 2007 in select regions. The campaign, featuring international sport stars such as Allen Iverson, Yao Ming, MS Dohni and Nicole Vaidisova, declared that there is more to an athlete than his or her sport.

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2008 Reeboks global marketing campaign, Your Move launched in March of 2008 and evolved Reeboks positioning as the brand that celebrates individuality and supports those who choose to do things their way. In the summer of 2008, Reebok and driving ace Lewis Hamilton announced a multi-year partnership at a spectacular 3-D event in Amsterdam, home of Reeboks European Headquarters. 2009 In February 2009, Reebok launched the Jukari Fit to Fly workout, the first in a series of initiatives to come out of a new, long-term partnership with Cirque du Soleil. Jukari Fit to Fly makes fitness fun again by introducing a new way to move. Also in 2009, Reebok made a pledge to tone the butts and legs of women around the world with its innovative EasyTone footwear.

Logo Development

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A.

B.

C.

OUR SUPPLY CHAIN

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The majority of Reebok products are manufactured in approximately 724 independently-owned and operated factories around the world. These factories employ more than half a million workers. A factory is defined as a manufacturing facility that: cuts, sews, screenprints, embroiders dyes, outsole placement/injection, stock-fits, and washes, assembles, or packages at a primary or subcontract facility.
SUPPLIER RELATIONSHIPS

There are three main types of commercial relationships: Direct relationships with contract factories We contract directly with some factories. These direct relationships account for 28% of apparel and 95% of footwear production by volume/spend. These factories are often part of a large company with factories in several locations. The Reebok country office in each location oversees this manufacturing. Sourcing through agents Some orders are placed through agents, who select the factories subject to our approval. Most of our apparel manufacturing in Asia is purchased through agents. In footwear manufacturing most orders are placed directly, but we also work with three agents. Subcontract factories Occasionally factories may subcontract parts of an order to another factory.
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Reebok has classified its retail stores in following three categories: A store deals with new products and normally these stores do not provide any discount on products as the products are new in market. In India Reebok is having 30 % of A type stores. B store deals with only old products which they get from the franchisees after a poor demand of these products. B stores sales those products on a higher discount rate. Reebok is having 10 % of B stores in India. A plus B store deals with both new and old products, thus it is a combination of A and B. in India Reebok is having 60% A plus B stores.

WHERE ARE OUR SUPPLIERS?

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Footwear Reebok uses footwear factories in 14 countries. Most factories making Reebok footwear are based in Asiaprimarily China (accounting for 51% of total footwear production), Indonesia (21%), Vietnam (17%) and Thailand (7%). Production is consolidated, with 88% of Reebok footwear manufactured in 11 factories, employing over 75,000 workers. Apparel Our apparel supply chain is larger, with factories in 45 countries. The process of purchasing products from suppliers is organized by region. Most (52%) of our apparel sold in the US is produced in Asia, with the rest coming from countries in the Caribbean, North America, Africa and the Middle East. Apparel sold in Europe is typically sourced from Asia and Europe. Apparel sold in the Asia Pacific region is typically produced by Asian-based manufacturers.

MAJOR PLAYERS IN THE INDUSTRY

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Nike

Bata

Puma

Relaxeo

Lotto

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Fila

Volume of purchase (for all members)

Volume of purchase is mainly depends on demand forecasted for the given period of time. Demand for shoes varies from store to due to the factors influence the demand like location, sales persons, and store ambiance etc. Usually Franchisees owners purchase 10 to 20 percent more than the projected demand for the shoes. Quantity purchase is also influenced by the funds available to the store owner.

Demand forecasting methods

Reebok use time series forecasting method for forecast the future demand. In time series forecasting method they use exponential smoothing method to see the effect of other factors on demand. The exponential smoothing is an averaging method that reacts more strongly to recent changes in demand by assigning a smoothing constant to the most recent data more strongly; useful if recent changes in data are the results of actual change (e.g., seasonal pattern) instead of just random fluctuations. Demand forecasting for the franchisees done by the Reebok India ltd by the above method.
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Stock replenishment cycle and methods

Stock is purchased on the basis of demand forecasted for the given season. As the Reebok distributors warehouses are not so far from the store in Delhi, it takes less time to transport the goods to stores so the store owners maintain the inventory as convenient to them.

Budget allocation
Reebok allocates a big amount to its advertisement campaign because there is strong competition with Nike and puma. Reebok is a well known global brand and on the way to achieve the highest position in sport shoes industry. Reebok spends about $215 million in its advertisements. Reebok spends 22% in TV broadcast, 20% on news paper, 5% on internet, 8% 0n radio, 12% customer magazine, 15% direct mail, 8% on yellow pages, 4% business publication, 6%on others of its promotional budget.

Promotional schemes
After the acquisition of Reebok by Adidas they were in the head lines of TV news and news papers. This creates awareness among people free of cost for a Reebok and Adidas. It also creates a strong perception in customers mind.

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Reebok is using integrated promotion tools. Reebok is having a good brand value in India. Reebok is in top companies providing comfortable sport shoes and apparels. Reebok is using famous sports players and actors (M.S. DHONI, YUVRAJ SINGH, and BIPASA BASU) in its advertisements. Reebok is manly use TV and Print media for its advertisements. In sales promotion Reebok provides discounts on its shoes and also use the scheme of giving free gifts or products on higher purchase. Reebok also sponsored the events and games to create awareness among mass peoples. Reebok use internet marketing to sale and promote its shoes as well.

How goods are transported between the supply chains

In supply chain the retailer order the required quantity to the distributor and it is the responsibility of distributor to transport the product to the store location. But when distributors purchase the stock from Reebok India ltd it is again responsibility of distributors to transport the stock from Reebok warehouse to own warehouse or store.

Display decisions
A retail display is a merchandising display that attractively showcase shop inventory or featured products. An immense number of products in

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the retail market are competing for attention. And the offer of new product seems to increase day by day. Its good to know that at least 60% of purchases are decided right in the store, In display decision manly new and highly demanded products are highlighted in store. As the demand and trend change the location of products in store also change. Retailers display the products in such manner that influence the buying decision of the customers. Right choice of retail display and retail space design will help store owners to differentiate from other stores and persuade shoppers to come in, stay longer and come back.

Total sales and profits from shoes

Total sale of shoe for a month varies from 3.5 lacks to 6 lacks. A franchise owner of Reebok gets 20 percent of profit on M.R.P. of the shoes. In this 20percentage he can offer 5% to the customer at the time of bargaining to make the sale. So a shoes pair of 6000 M.R.P. he gets in 4800. After paying the expenses of stores like electricity bill, sales persons salary etc remaining is the net profit for the store owner. Thus the net profit for the owner varies from 38,000 to 65,000 per month.

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SWOT ANALYSIS
Strength: Size & strong brand awareness and perception. Wide range of celebrity associated sponsorship It's strong position in the women's sector Research and development Marketing

Weaknesses: Too much reliance on retail stores to sell products.

poor employment practices at overseas manufacturing sites

High % of upper management turnover Dependency on Footwear sales

Opportunities: Emergence of more Sporting events

Womens Marketplace College/Pro Sports Reebok is also leveraging the digital space to control distribution and build direct consumer Broaden market expected from convergence of broadcasting, telecom and entertainment industry (reality shows)

Threats: Strong competition.

Rising price of row material Chinese products Global/Domestic Economies

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CONCLUSION
From the field-study conducted at the Reebok showroom located at shine bag , Srita Vihar, New Delhi I was able to conclude that people buy Reebok products mostly because of comfort and they mostly go for the quality & brand value of the product. The after-sales service provided also acts as a factor for the purchase decision. The product quality & comfort along with style & promotional strategies of using sports celebrities as their endorser has helped Reebok gain the significant market share. We conclude sustainable competitive advantage will be achieved relative to Nike, especially in regards to increased branding. However, AdidasReebok will not achieve a higher market share over Nike immediately, due to the length of time branding requires. After analyzing financial statements from all three companies, as well as conducting several analyses, including the industry, customers, competitors, and marketing strategies, it is clear to us that Adidas-Reebok strategically will be positioned better than Nike.

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QUESTIONNAIRE FOR CUSTOMERS

Name Mob. No. : :

1. Do you prefer branded products? a) Yes b) No c) Not often

2. Have you ever visited Reebok outlet? a) Yes b) No 3. Do you feel Reebok shoes are easily available in the Market? a)Yes b) No

4.

Which motivates you to go for Reebok? a) Brand image b) quality c) price d) comfort e) others

5. How do you gather information about Reebok? a. Family& friend c) Personal experience b) advertisement d) Impulse purchase e) others

6. Which of these factors affect your purchase decision? a. Assortment b. Quality b) Brand name d) Ambience

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7. What do you think of product after purchase? [Post purchase behavior]. a. Good c) Satisfactory b) Excellent d) poor

8. Which one you will prefer? a) Reebok b) Nike c) Puma d) woodland e) other

9. Whether you are a frequent user of the product. a) Often c) Not a user b) occasional d) never heard of.

10.How would you rate Reebok? a) 1 b) 2 c) 3 d) 4 e) 5

11.

What suggestions would you like to give for Reebok?

Signature Thank you for spending your precious time answering this Questionnaire.

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BIBLIOGRAPHY

Internet:
www.google,com www.Reebok.com www.wikipedia.org www.scribd.com

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Books:

Philip Kotler Principles of Marketing

Kotler Marketing Management

Pryank Azad retail Management

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