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Reebok Strategy
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Reebok’s Gameplan in
India“Have Fun While you Run”
Presented By:
Tushar Atrey Sumit Dhandhania Abishek K Rao Rohit Jamkhandi Nirav Patel Ananya Pandey
$3 bn fitness & sportswear giant
Came in India in 1995
Rs.1.3 bn business in India in 2002
50% market share in sports shoes in India
Near about 15% growth
The “Fitness Brand”
Rbk- Intro
Indian Footwear Market
Middle Class ( approx 10 mn) – Rs.500 to Rs.750
Premium ( 2 mn) – Rs.700 to Rs.1200
Super Premium – Rs.1200 and above
Super Premium – expected market of Rs.2.5 bn
Estimated Annual Growth – 10% to 12%
80:20 joint venture with Phoenix Overseas
Initially 65 types of shoes , and other sports garments in
5 exclusive stores in Delhi & Mumbai
In 1999 , 40 models introduced b/w range of Rs.990 –
Rs.1500
Cricket Shoes Pro & Golf Footwear range was introduced
First Concept store – Planet Reebok
Tie-Up with Bata for retailing footwear
By 2001, Reebok had 65 exclusive stores & 700 shops in
78 cities
Reebok Gymansium set up in Delhi & Bombay
Also organizes certification courses for fitness training
instructors.
Reebok in India
Reebok’s Strategies for Indian Market
Reebok
Focus
Diversification
Fundamental
Approach
Brand Visibility
Strategies
Celebrity endorsements like MS Dhoni and Bipasha Basu
Investing 30% in ATL and 70% in BTL activities.
Sponsored 4 teams in IPL Season 1 & 2
Targeting Women
Kids Range
Targeting developing countries
Offering variety of products – Fitness Products & Accessories
Market Share in India
40%
20%
15%
15%
Market Share
ReebokAdidasNike Others
* Only Market where Reebok is No.1Source:Technopak Advisors
Rbk’ Fitness PlatformVision : To enhance fitness
consciousness Till Now………..
Created awareness about fitness among Indians Reebok instructor alliance program (RIA) Set up Reebok gymnasiums in Bangalore & Mumbai Customized fitness apparels for women Range of personal fitness equipment More spending on fitness related events & activities
Road Ahead :
Indian Fitness Industry expected to grow 20-30% annually. Sponsorships in Sports Launching RunTone & TrainTone under EasyTone Collection Coming up with Fit to Fly and Fit to Flex fitness centres soon ReeZig – introducing Zig Technology for men
Reebok for Kids
Tapped Indian Kids Market Market Estimate Rs 10 Billion Special Edition Shoes for Kids Relatively low priced Customized Schools shoes with
Reebok Logo Brand Ambassador : Rahul Dravid Pricing Range: Rs 840 – Rs 2000 In 2002, Reebok for Kids became a
brand extension.
Competitive Analysis
Adidas• Performance Brand
•Selective Retailing Distribution
• Focus on Brand Visibility
• Targeted Diversification and Segmentation
Nike• Retail Promotion of Brand
• Awareness to be major promotional tool
• Structured Marketing Campaigns
• Creation of Distinctive Identity
Rbk Vs. Adidas Vs. Nike
Adidas moves out of the picture as a major competitor
Nike offering Wide range of Products
Aggressive marketing strategies by Nike with 40-50 models
of footwears & 100 new kinds of apparels every month
Reebok focusing on Fitness products
Opportunities in IndiaLow & Medium Priced RangeRun Easy CampaignsPlethora of opportunities in untapped Ladies & Kids Segment• Lion share around 80% of unorganised players in Ladies &
Kids segment• Tier II and Tier III towns can be potential targets
Estimated growth in the Industry is 12% & estimated to touch Rs,47000cr by 2025 Reebok Fitness Online workout Footwear export is growing at 18% annually Lifestyle brand for 17-35 yrs group
Question 1
Reebok was one of the first multinational sports footwear and apparel manufacturers to enter India. Soon after its entry, Nike and Adidas, the other two global players, also entered the Indian market. What were the strategies adopted by Reebok India to stay ahead of its competitors? Do you think these strategies can sustain Reebok’s lead position in the future.
Question 2
Globally, Reebok is positioned as a total fitness brand. However, the fitness footwear and apparel market in India is at nascent stage, and has limited scope. Do you think Reebok can maintain its lead position in India by banking on its fitness platform? Give reasons to justify your answer.
Question 3
Nike and Adidas are two strong competitors of Reebok. What are the strategies adopted by Nike and Adidas to compete with Reebok in the Indian market? Do you think they are capable enough to compete with Reebok?
Thank You ….
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