Strategy evaluation of Reebok

EVALUATION OF REEBOK’S STRATEGY

Group Members:

Ahsan Tanvir Ahmed, Id# 31324019

Farouque Hossain, Id# 31324017

COMPANY PROFILE

• Established in 1895 in the small England village of Holcombe as J.W. Foster and Sons, Reebok, as it was renamed in 1958 (after “rhebok”, a type of African gazelle)

• Reebok is a worldwide designer, marketer and distributor of sports, fitness and casual footwear, apparel and equipment.

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

• In 2013 about 1,640 million euros in sales which is 18 % of Adidas group sales

• CEO: Uli Becker

• Reebok is a global brand that creates and markets sports and lifestyle products built upon a strong heritage and authenticity in sports, fitness and women’s categories.

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PRODUCT CATEGORIES

• Brands – Nano 4.0, Les Mils, Cross fit gears, Zquick, Spartan,

Skyscape, Classics

• Men’s & Women – Shoes, Clothing, Accessories

• Kids – Shoes



KEY PRODUCTS OF 2009 - 11

Sales Volume 2006 - 13• Net sales of the Reebok brand worldwide from 2006 to 2013 (in million euros)

• This timeline shows the net sales of the Reebok brand worldwide from 2006 to 2013. In 2011, the Reebok brand's net sales amounted to about 1.94 billion euros.

0

500

1000

1500

2000

2006 2007 2008 2009 2010 2011 2012 2013

Million Euros

1,979 1,831 1,717 1,603 1,913 1,9131,940 1,640

Adidas Reebok may generate bid from investors:

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

Acquisition Background

• Goal: increase share in the U.S. market + better compete with Nike

• The deal will give Nike its first formidable competitor in more than a decade. A combined Adidas-Reebok will control about 23 percent of the market, although it will remain behind Nike, which has about a third of the $145 billion worldwide market.

• Reebok sales down in fourth quarter of 2005

• Deal closed on January 2006

• Price: $3.52 billion

<From: http://nikesports.wikispac

es.com/Finance>

COMPETITORS

31

16

67

6

5

4

2

5

18

Athletic footwear - Global market share

Nike

Addidas

Reebok

Puma

New Balance

ASICS

Converse

K- Swiss

Skechers

Others

CORE COMPETENCIES

• Trend Identification – Introduced first athletic shoe for

women

• Ability to market to a niche segment – Targeted women

• Women's shoe design

• Design expertise - The Pump. Reebok developed its pump technology in 1989. Introduced first spiked running shoes in 1890.

CORE COMPETENCIES

• Celebrity relationship - In 2003 Rebook made history by signing Jay-Z, the first non-athlete to score a deal for a line of sneakers from an athletic shoe company. Also launched many campaigns with many celebrities like 50 Cent, Yao Ming, Scarlett Johansson, Casillas, MS Dhoni, Thierry Henry, Miranda Kerr

• Loyal women consumers - Reebok has managed to hold the loyalty of a large portion of the industry’s female consumers market. Reebok's market share of women's athletic shoe sales was around 35%, and has been boosted by its 'It's A Woman's World' marketing campaign.

CORE COMPETENCIES

• Trend Identification

• Ability to market to a niche

segment

• Women's shoe design

• Design expertise

• Celebrity relationships

• Technology

• Customer focus

• Brand recognition

• Supply chain

• Collaboratively competitive

CORE COMPETENCIES COMBINED

• Adidas technology with Reebok design

• Adidas sports with Reebok women's market

• Adidas shoes with Reebok apparel

• Adidas global strength & Reebok US strength

Change in Logo• The new logo coincides with the brand's

"singular" focus on fitness. It endorses a specific set of activities training, running, outdoor, yoga, dance and aerobics” as specified in the press release — that Nike and Adidas are not placing as keen a focus on.

• The Reebok Delta has three distinct parts each representing the changes -- physical, mental and social.

Global strategy of Reebok International

• Develop innovative products for athletes.

• Attract serious athletes.• Creating market excitement.• Sport sponsor.• Focusing on both functional

and fashionable.• Build cooperative

relationships with retailers.• Customize services to better

fit their needs.• Improving retail presence.

Global strategy of NIKE• Corporate level strategy

• Focus on innovation

• Emphasis on research and product development

Global strategy of ADIDAS

• Corporate level strategy And product differentiation strategy

• Trying to produce new product, service and process

• Moving head quarters to reach customers

Comparison of strategies Between Nike, Adidas & Reebok

• Nike and Adidas have almost similar strategies but different in implementation method

• Both focus on technology and new product

• Where as Reebok creates the best gear and experience for the sport of fitness around the globe.

• Reebok connects with fit generation

• Reebok Kid is focused on fun in functionality

• Teenagers and Young generation

FOCUSED AREAS OF REEBOK

Strategy of Adidas - Reebok• Adidas will benefit from increased distribution in North America.

• Along with the increased operating capital, other synergies such as operating savings are realized.

• Reebok has an extensive line of men and women's apparel. The new company can combine Reebok's apparel with Adidas' new addition of fashion designer to gain a competitive advantage.

• Adidas will be able to take advantage of Reebok's existing distribution infrastructure in the U.S., while Reebok will be able to benefit from Adidas' existing distribution infrastructure in Europe.

• The Reebok brand will also gain sustainable competitive advantage through increased brand recognition. Globally, Reebok will benefit greatly from Adidas' distribution around the world.

• Combined R&D is helping speed development of cutting edge technologies


MARKETING CAMPAIGN TO WOMEN

Allure

Love

Green

Campaign


MARKETING CAMPAIGN : THE GREATEST LOVE


MARKETING CAMPAIGN FOR ENVIRONMENT


CREATIVE REEBOK EXTRA GRIP PACKING


SWOT ANALYSIS

• Reebok’s name - branding and a high

quality image

• Excellent service network

• Teenagers and the young generation

• Supplier’s factory situated in Asia- to cut

down the cost of production

• The biggest threat is the popularity of

other companies

• Limited customer base

• The variety of design and function

• Moving from the specialist sports shoe

market to the young and adult market

• New and innovative sports shoe designs

• Growing market

ST

RE

NG

HT

S

• It faces a lot of competition in the sport shoe

industry

• Its high prices have limited their range of

customers

• Lack of proper advertisement

OP

PO

RT

UN

ITIE

SW

EA

KN

ES

SE

ST

HR

EA

TS


Current Problems & Improvement Suggestions

Strategy evaluation of Reebok

Marketing

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