Reebok

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Transcript of Reebok

Founded in England in 1895 as J.W. Foster and Sons,

a manufacturer of track shoesRenamed Reebok in 1958 & named after African gazelle.

Contributes 18 % of Adidas group sales

Adidas officially took over Reebok in 2006 due to struggling with several years of steady decline

CEO: Uli BeckerReebok is a global brand that creates and markets sports andlifestyle products built upon a strong heritage and authenticity in sports, fitness and women’s categories.

“Continue to bring inspiration to present and future athletes, while maintaining the Company’s standard of quality for its products.”

“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 thebrand’s unlimited creative potential. ."

J.W. Foster and Spikes of Fire

In the 1890s, Joseph William Foster made some of the first known running shoes with spikes in them.1950-1980

A Gazelle Named Reebok, A Company on the Move

In 1958, two of the founders grandsons started a companion company that came to be known as Reebok, named for an African gazelle.

By 1981, Reeboks sales exceeded $1.5 million.

In 1986, Reebok made its first strategic acquisition, The Rockport Company.

Reebok began a transition from a company identified principally with fitness and exercise to one equally involved in sports.

Reebok and the National Football League announced an exclusive partnership that serves as a foundation of the NFL’s consumer products business.

Reebok formed a long-term strategic partnership with the National BasketballAssociation.

Reebok launched Rbk Hockey, a new and innovative line of ultra-highperformance hockey equipment

In January 2006, Adidas-Salomon AG acquired Reebok, forever altering the worldwide sporting goods industry landscape.

Reebok launched ZigTech, designed to conserve and return energy to the athlete for a soft and springy ride.

In 2011, Reebok formed a long-term alliance with one of the biggest fitness movements of our time, Cross Fit.

Reebok also announced its long-term partnership with producer, artist and designer Swizz Beats.

Reebok also launched Real Flex.

Reebok India’s ex-MD & COO arrested for fraud.

In the news -Reebok Hires Lancaster MBAs To Work On New Branding Strategy.

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 equipment

4) Exercising / health products

Reeboks specialty is their shoes. They vary from shoes for every day use toprofessional footwear. The outlet has around 4000 different types of shoes. The outletalso sells floaters and sandals which have gained a tremendous amount of popularityamong the youth.

These include T-Shirts & shirts, track suits, shorts, socks& caps which a quiet popular among teenagers , sportsmen and professionals.

Sport equipment includes like Cricket bats & balls, Tennis balls and gymnasticequipment.

It also sells exercising / health products like dumbles &weights, skipping ropes etc.Recently Reebok has launched its Iverson Collection .

Reebok’s name - branding and a high quality image Excellent service networkTeenagers and the young generationcustomersFactory situated in New Delhi -to cut down the cost of production

It faces a lot of competition in the sport shoes quality image industry .

Its high prices have limited their range of customers.

The variety of design and function Moving from the specialist sports shoes other manufactures market to the young and adult market New and innovative sports shoe designs Growing marketO

PPORTUNITIES

The biggest threat is the popularity of other manufactures

Customer loyalty

Limited customer base

SITUATIONAL ANALYSIS

Where is Reebok situated currently?

Fulfilling potential

Courage to challenge convention

Celebrating individuality

Having !

Exaggerated advertisements A more natural approach

Controversial and confusing product names Stay with Reebok

The current consumer segment Can be made stronger, is good BUT improve customer loyalty

Can be broadened, find new market segments

Love: The RED campaign Forecasting the future trends

Ecofriendly: The GREEN campaign

Community: The YELLOW campaign

RED CAMPAIGN

• Family month (May)• Right exercise

– Feet support your entire body – Prevents joint inflammation (Head, shoulders, knees and toes )

• Promotion: Bring your mother (with red clothes) and get 30% discount

GREEN CAMPAIGN

• Ecofriendly• Care about the nature• Sustainability and environmental issues• Promoting the natural movement of the foot• Recycled shoe boxes and materials in the shoe• Marathon in unique but natural environments

YELLOW CAMPAIGN

• Community & Friendship• Having fun• Providing balance and energy efficiency• Club party sponsored by Reebok!

40 Main Footwear Factories in 8 Countries

600 Apparel Factories in 29 Countries

450 Raw Material Suppliers

27 Freight Forwarders

• Transportation modes include Ship, Truck, Rail and Air

34 Custom Brokers

Over 5,000 purchase orders placed each month

Reebok India, leading Sportswear brand in India .

Mr. Sajid Shamim was the Brand Director of Reebok at Adidas Group.

Reebok India Company, which has filed a fraud caseagainst its two top former executives.

After this incident, Mr. Sajid Shamim resigned from the company.

Adidas (2012) said global sales of its Reebok brand declined by 26 per cent in the April-June quarter on a ‘currency-neutral basis’, mainly due to the impact from Reebok India Company.

In May this year, Reebok India had filed an FIR, alleging that its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat were involved in a Rs 870-crore fraud by indulging in "criminal conspiracy" and "fraudulent" practices over a period of time.

Both the executives, however, had denied the allegations. Following this, the Ministry of Corporate Affairs (MCA) had ordered a scrutiny of the books of accounts of the sportswear maker Reebok's Indian arm by the Registrar of Companies. The case was later handed over to the SFIO.

The Income Tax Department too had launched a probe into the finances of Reebok India.

Besides, Institute of Chartered Accountants of India (ICAI) had sought information from the auditors N Narsimhan & Co and the company in order to carry out its ownprobe into the role of auditors.

Earlier in May 2012, N Narasimhan & Co has informed the ICAI that there was no accounting wrong doing in the company.

Subhinder Singh Prem

Vishnu Bhagat

PRESENTED BY-

RUPALI SHARMA

VANSHIKA TYAGI