Reebok is a well-known brand which produces athletic footwear, apparel, and accessories, and which has been a subsidiary of Adidas since 2006. In this report, we will analyze the marketing strategy of this global brand and understand all its mechanisms. The goal of this project is to enable us to apply the concepts learned in class to a real case study.
That's why, in the first part, we will give a concise overview of the company with information like the export turnover and a history of its international development. Then, we will study the sport industry with the main competitors, and consumer behavior. Afterwards, we will analyze the marketing strategy of Reebok to finish with a Marketing Mixof one of the products supplied by the brand.
Reebok manufactures athletic footwear, active wear such as shirts and shorts and sports related items for men, women, and teens. The Reebok segment also comprises the brands Reebok-CCM Hockey and Rockport, and has 40% of total shares generated by international sales.
[...] Export turnover We can give here some figures concerning the export turnover of Reebok: Reebok has generated a turnover of more than 2 million Euros for the year 2008 and 45% of the net sales were generated in North America. In India, Reebok, which has a 54 per cent market share, has achieved a turnover of Rs 1,400 core for the calendar year ending December 2008. b. Number of subsidiaries abroad Reebok, being a subsidiary of Adidas, is present into a large number of countries all over the world. [...]
[...] Considering the Adidas Group portfolio, Reebok wants to own Women's Fitness, to challenge Men's Sport and to revive Classics. Furthermore, Reebok is trying to reach young and fashioned people with the trendy shoes, the older people with the classics but also sportsmen and women with the fitness products, especially in China and India where the fitness market is growing really fast. c. Brand Strategy Reebok developed a clear roadmap for its key businesses: As we told you in the previous part, Reebok want to own Women's Fitness, to challenge Men's Sport and to revive Classics. [...]
[...] He acquired exclusive rights to distribute Reebok shoes in North American and subsequently started the company known as Reebok USA. In January 2006, Adidas Group acquired Reebok for 3,1 billion Euros, in order to expand more and increase its turnover, to compete with Nike. In 2007, Adidas planed a big expansion for Reebok in Asia, including about 3,200 stores in China, India and Russia by 2010. The brand also intended to expand in Turkey, Poland and other parts of Eastern Europe. [...]
[...] In the end, even though Reebok faces harsh competition with Adidas and Nike, it has to be strong to cope with the various smallest competitors who own most of the global market shares. b. Type of competition (global, national, SMEs, niche) The competition concerns the global market. Effectively, those leading brands play a role on the international stage and are present on markets worldwide: the USA, the UK, France, India just to name a few. c. Supplier control (strength of negotiation power over suppliers) Reebok has included worker training to develop the capacity of workers. [...]
[...] Reebok distribution strategy depends on the country. In fact, Reebok use, in India and in China an intensive distribution strategy with 183 franchised stores and more than 2000 multi brands outlets. In the opposite, to reach their objectives Reebok use in France a selective distribution strategy. Reebok products are for instance only selling in several Parisians' trendy shop and in multi brands outlet such as André or Courir. Conclusion Having redrawn the history of the company of its creation until today, we saw that the multinational exercises activities on five continents with about 190 subsidiaries all over the world. [...]
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