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8/3/2019 IIMA Layman Bros
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Fuelling passion into action
Lessons in Marketing Excellence 3
Team Layman Bros, IIM Ahmedabad
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Contents
About Reebok Current Trends Segmentation Societal factors Market Analysis Major issues Solution
Awareness Quality Improvement Financing
Measuring Impact
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Reebok
Positioning Celebrate individuality in sports & life
Purpose Empower global youth to fulfill their potential
Brand territory Have fun staying in shape
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Current Trends*
A growing need is being felt forbecoming/remaining Fit
Common options available for people ofdifferent age groups
Gymming, Walking, Yoga or any sportsactivity
Parents are supportive but only till theage of ~14 yrs. (class 9)
Youth influences fitness consciousness inParents
Increased participation in Status Sports -Tennis, Golf, etc.
No serious pursuit by most people
Cricket is still the most popular game inevery parameter while there has beenemergence of interest in surrogate sportslike, Tennis, Squash, Swimming, etc.
Focus has shifted Accessibility (paucity of time and facilities)
Quality (improper facilities, trainers)
Seriousness-->
Importance -->
Perceptual Mapping of Sports and Fitness*
Sports
Fitness
Sports N
Fitness N
* Obtained from the Qualitative
Surveying of Players, Coaches,Shop Owners, Gym trainers, etc.
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Segmentation
8-14 yrs 18*-25 yrs 25-35 yrs >35 yrs
Focus: Sports
Motivation:Competitions,Societal
recognition.
Influencers:Parents,Peers,Coach,Seniors
Focus: Sportsand FitnessMotivation:Show-off,Recreation,
Health andFitness
Influencers:Peers, Coach
Focus: Fitness& Sports.Motivation:Health, Generalfitness,
Recreation
Influencers:Peers, Coach
Focus: Fitness
Motivation:Health,Recreation,
Socializationneeds andGeneral fitness
Influencers:Peers,Children/Youth,
Doctors* a gap of 4 years given hardly anyone studying in India from std. X to std. XII indulges in sportsactivities seriously
Slicing through these three segments A small % of people whopursue sports seriously & rest for fun and rejuvenation
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Quantitative survey results
Whatkind offitnessactivity doyou
pursue ?,
Whatkind offitness
activity doyou
pursue ?,
Whatkind offitness
activity doyou
pursue ?,
Whatkind offitnessactivity doyou
pursue ?,
Whatkind offitnessactivity doyou
pursue ?,
What kind of fitness activitydo you pursue ?
Cricket
OtherSports
Gymming
Walking/Running
Other
Whatmadeyoustart
pursui
ng thi
activity ?,
Whatmadeyoustart
pursuing thi
activity ?,
Whatmadeyoustart
pursuing thiactivity ?,
Whatmadeyoustart
pursuing thisactivity ?,
Whatmadeyoustart
pursuing this
activity ?,
What made you start pursuingthis activity ?
Advertisements/MassMedia
Doctorssuggestion
Parental/Senior's Advice
SelfMotivation/Interest
Peer Advice
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Quantitative survey results
Whatkeepsyou
motivated forthese
sports/fitnessactiv
Whatkeepsyou
motivted fothese
sportsfitnesactiv
Whatkeeps
youmotivated forthese
sports/fitness
activ
Whatkeepsyou
motivated forthese
sports/fitnessactiv
What keeps you motivated for thesesports/fitness activities?
I have toimprove myplay
It keeps me ina good shape
It keeps mehealthy
It has becomeasocializing/recreationalactivity for me
Few InsightsSelf motivation is the most importantaspect in making a person pursuesportsFor most of the populace, even pursuitof sports is for a health purpose
Research indicates that mostly kidswho played a sport re likely to pursue itas adults for recreationPicking up a new sport after age of 20is unusual ( Except for status sportsTennis, Golf)Lack of infrastructure is majorimpediment for people who want to play
Most people if given an opportunity willpursue Gymming/fitness activity ratherthan sportsPeer advice and WOM is a veryeffective medium to get a person intosport/fitness
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Factors that influence sporting culture
Macro level factorsIncome, Culture, Awareness, Healthconsciousness, Promotion of sports, politicalimperatives
Community levelFacilities available, Neighborhood, Hostingmega sports events, Success in sporting events(effect varies from region to region)
Individual level (motivations)Influence of sports heroes, winning competitionsand social recognition, For Health & Fitness,Influence of peer group
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Market Analysis
Sports Retailingin India
Totalsportsprodu
ctsmarke
t(valuewis
Totalsports
products
market
(valuewis
Totalsportsprodu
ctsmarke
t(valuewis
Total sportsproducts market(value wise)*
Mark
etshare(branded
sports
Mark
etshare(brandedsports
Mark
etshare(branded
sports
Market
share(branded
sports
Market share *
Nike Reebok Adidas Puma, Lotto, others
Health & Fitness market in India
Current Size: Rs 2900 cr in 2009CAGR: 15%Regular work out: 1.5% of urban population0.1% of total populationThe global figure is 15-20% of total population
Indicates low penetration and huge potential
Sports wear industryIncludes footwear, apparel & accessoriesRs 5000cr in 2010.Expected to grow to Rs.12000cr by 2020Increased participation will lead tohigher growth figures
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Major issues in sports
Issues Impact Current actions Criticality
Lack of good coachesand physical trainers
Bad performance atinternational forumsLack of motivation at lowerlevels of sports & fitness
RIA in fitness.No specific programmes toenhance coach quality
HIGH
Inadequate sportsinfrastructure
No proper practicePrevents mass participation
Increased funding by govt.No improvement in grassroots
infrastructure
HIGH
Mismanagement ofsports bodies
No accountabilityPersonal fiefdom ofpoliticians
Few politicians booted out afterscamsIn general, political interferencein sports is still high
HIGH
Funds Sponsors,
Prize money
Sports cannot be a career
option
Corporate sponsorships are
growing at top levelEx: Mittal champions trust,Olympic Gold quest etc
MEDIUM
Education Syllabus Focus shifts away fromsports during ages 15-17Many young talented peoplestop playing
Goa state syllabus includessports marks.CBSE moving in the samedirection.
MEDIUM
Capability
issue
Capability
issue
Capacity
issue
Capacity
issue
Attitude
issue
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Plan objectives & timeline
Short term2011-14
Co-ordinate with other private entities to form a sports lobby Small scale local level initiatives Focus: On current market & strong areas in the top metros &
cities
MediumTerm 2014-
20
Use new sport events & leagues to actively involve populace Drive change in thinking and perception of sports by pushing
structural changes Focus: Leverage new structures & events to generate interest,
create awareness, reach and connect with a new audience
Long Term2020 &beyond
Make sports & fitness part of lifestyle of majority of Indians Elevate sports from status of a secondary activity Focus: Complete overhaul of current system, by incessant
lobbying & through private investment & PPP Involvement in sports down to Community & neighborhood level
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Short term 2011-14
Co ordination ProblemLack of co-ordination amongst the privateplayers -> Partner with like mindedcompanies (Nike, Coke, RIL, M&M)Create a sports lobby with other majorcompanies interested in the sectorUse FICCI Turf conferences to achieve this
Push for tax rebates on promoting sportsPush for PPP in sports infrastructure
Funding & ScholarshipsSubstantial prize money and recognition at city, regional& national levels in competitions-Can be directlysponsored by ReebokAppoint Reebok ambassadors in top metro schools& colleges, Best all- rounder in sports -> Immensevisibility & aspiration created at ground level in schools
Sports Equipment for Corporates /Schools at subsidisedrates
Coach Training WorkshopsExpand the Reebok Instructor Alliance program for Gym Trainers Coach quality plays ahuge role in motivating people continue fitness activitiesEducate coaches on possible career paths, conduct talks by international trainersEducate on business planning & encourage opening of new gyms
Train physical Education Teachers improved awareness in schools
Camps for non-traditional & adventure sportslike Rugby, bungee jumping, paragliding etc togenerate interestOffice goers Reached through office touch-points - Create trophies in each city forvarious sports, generates interest &involvement in office partner with othercorporates for logistics & spending
Use Ad clout for local media coverage to solve chickenand egg problem of lack of coverage & lack of
awareness@storeFlyers stressing on importance of sport & fitnessCollect mobile nos of customer send messagesfocusing on benefit of sports & fitnessSpread message through social network feeds
Government involvement is critical for any large scale change in the sporting system
Capability
improvement
Capacity
Improvement
Attitude
Improvement
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Medium term 2014-2020
Comprehensive evaluationGoa state has included a sports componentin its overall marksPush a similar system amongst CBSE, ICSE& IB schoolsCreate sports scholarship schemes long linesof NTSECreate a body along NCAA (Nationalcollegiate athletic association) of USA
Upcoming Professional Leagues The next big thing in Indian sportsF1 starting in October 2011 Expected to usher the motorsport era in IndiaElite football league of India (EFLI), Junior NBA, FIH hockey leagues starting in 2013Indian Tennis, rugby & baseball leagues in the pipelineLocal leagues like Karnataka premier league
Focus - Developing a die-hard regional fan culture around these teamsThe fans will be the torch bearers & WOM carriers for the team & the league
Will provide lucrative career options in a variety of sports Thus increasing serious pursuitAttractive nature of leagues -> higher viewership -> higher sponsorships. Thus creating an upward cycle for thevarious sports involved
Create Local HeroesServes as inspiration to people pursuing it professionally & creates awarenessNearness effect He will affect & inspire people more than a national heroFeature local sports heroes in OOH ads & social mediaAdds to mystique, creates curiosity factor & leads to information searching
Associate with teams & offer Reeboks marketing skills to achieve the above
Fitness FocusTie up with doctors association to improveconsciousness about fitnessTrain coaches to increase levels of quality, equipmentand knowledge.Focus on retention as people pass through to middleages -> increase skill levels in gyms for counselingGym level advertisements
A
ttitude&capacityImprovement
Capability
improvement
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Long term vision - 2020 & beyond
Sports as anational unifier
Host mega sporting events Olympics, world cups etc
Publicize world classathletic achievements
behind which the nationcomes together Leagues based on regional
teams create healthycompetition
Sports is currently (and canbe even more in the future)an escape for the lowerclasses to stardom creatinga psychological impacton the community
More Events + Morewinners = National pride
Sports as a careerchoice
Create a talent pipelinefrom the community level tothe national level setupnecessary infrastructure
Salaries, job assurances,training & other incentivesfor the sporting talents
Involve private sectorcorporates to make itappealing to the currentgeneration
Professionalize sports
bodies and appoint CEOsto run each of them Improve rural facilities to
Sports as alifestyle
As the current Gen Yreaches parenthood, anatural focus on sports fortheir kids
Community levelinfrastructure toencourage recreationalparticipation
Construct mega sportscomplexes (One proposednear Blor) make it adestination activity
Make fitness a necessaryactivity across age groupsthrough mass media,doctors, promotions etc
All these steps will lead to rise of sporting culture in India
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Business view
Product portfolio expansionExpand to the new category of sports which will be launchedFocus on sports but expand lifestyle portfolio for non professionalusersMarketing-Ad-Promotion: Higher Local ControlIncreased focus on local and other sports heroes, as loyalties areexpected to be highly region based
Create attachment with the newer generation at a young ageHigher control to managers for institutional sales and other localschool level promotionsVisibilityEnsuring appropriate visibility in the various outreach programsScholarships, sponsorships etcMake sports an umbrella positioning with separate marketing &communications for various sports
Product deepeningHighest level technology embedded into products of all sports toposition as pioneerIn addition to SEC A , the target would include SEC AB - lowerrange of shoes
Changes
required toconsolidateposition and
increasesales
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Measuring Impact
Short Term
Medium term
Long term
BusinessImpact
Measure awareness and perception in schools were ambassador andscholarship programs are implementedPsychological impact of direct marketing and social media campaignsEffectiveness in creating sports lobby No of companies brought on board
Increase in sports participation due to education system changesEfficacy of creating of fan culture around the teams in leaguesIncrease in visibility and brand recall for ReebokImpact of better training of coaches through RIA on customers
Participation levels amongst school students & professional pursuitGeneral perception and importance attached to sports amongst populaceEffectiveness of lobby in changing status quo in various areasSuccess in creating local heroes
Web analytics to understand impact of activity through social media & blogsMeasuring Reeboks brand perception with sports & purchase intentSales impact due to association with professional leaguesSales variance over macro-economic f& other regular actors
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