Transcription
Marketing Analysis For1
Synopsis: Target AudienceIndian Market ShareMarket ResearchCompetition AnalysisCustomer FeedbackSWOT AnalysisConclusion2
Reebok Target Audience:Segment:Target Group:Positioning: Geo: Reebok chose to operate on Pan Indiabasis. Within India it segmented locations asper the consumers' needs. Income: Reebok caters to the middle-classand wealthy class and offers them midpriced products and premium products. Since its entry in India, Reebok haspositioned itself as a brand associated withfitness. Age: Reebok India has segmented its productrange as per the age of the consumers butthe primary focus is on the age group of 21-30years. Age Group: Kids in age group 3 - 7 yearsand kids in the age group 7-12 years. Inadults segment it is targeting 21 and 25 age groups. It launched ad campaigns with various taglines to show itself as a fitness brand. Forexample with it's "I am what I amcampaign“. Income: Reebok has product range for thelower income group as well as for high endcustomers. Gender: Reebok has wide variety ofproduct range for both men and women. The parent company Adidas, is positioningReebok as a brand associated with makingfitness fun and aspirational for everyone.3
About Reebok & Its Share In Indian Market:01Founded in 189502Strong sales growth from 2002-2004030405In Reebok’s target segment only one in ten was indulgedin any physical activity, however now seven out of tenpeople indulge in some kind of physical activity.It has a market share of 47 per cent in sports footwear andapparel category in Indian market.On August 03, 2005, Adidas-Salomon Announced acquisition of ReebokInternational Limited for 3.8 billon. 2) – The share price of Adidasincreased by 7.4% , while Reebok’s share price increased 30%. 3.4
Indian Market Research:More than 80per cent menand women aremaking aconscious effortto stay fit for ahealthierlifestyle.2 out of 10people engagesin a singleactivity, restpracticing twoor more.86 per centpeople feelfitness bandsand specialshoe designs arevital to theirworkout.55 per cent menlook for aperfect fit while56 per centwomen look forcomfort in theirgear.Source: www.brandequity.economictimes.indiatimes.comThe shoe fetishcontinues with64 per centpeople investingin the rightfootwear atleast once ayear.5
Spending Behavior & Attitude OfStaying Fit of Indians:Source: www.slideshare.net6
Reebok Top Competitors & Market Situation:Market Share IndiaAdidas holds a 21%Nike has a mere 11%market share in Indiamarket share in India.and has surpassed21%both Nike and Puma.11%Other brands14%Reebok holds a 46%46%Othertogether holds a 14%market share in India.7%market share in IndiaPuma has a mere 7%and has surpassedmarket share in India.both Nike andAdidas.Source: www.slideshare.net7
Top Competitors:Nike: Premium apparel provider for athletes. A Brand for athletes’ aspirational goals. Focus on hero athletes such as basketballlegend Michael Jordan. Sponsor many athletic programs, clubs,associations. Make use of new media advertisement suchas MySpace, YouTube, Facebook, Twitter,Apps, which contribute to its success.Fila:Puma: Develops markets leisure shoes, sportswear,athletic brand as well as other sportsaccessories. The company designs and developsapparel, footwear as well as other sportinspired accessories. Fila deals in basketball, tennis, golf, soccer,running and yoga inspired sportswear aswell as sports-inspired street wear. The advertisement & marketing campaignsput in place by Fila can make it passReebok in the near future if the latterdoesn’t up to its game.In the near past, apparel sale has grown atan unprecedented rate with athleticapparel options such as those formotorsports, men’s golf, and sailing gainingmomentum as days go buy. It is a strong competitor due to its pricingand product strategy.8
Reebok Customer Feedback:Source: www.amazon.com9
Reebok Customer Feedback:Source: www.trustpilot.com10
Reebok SWOT Analysis:Weakness:Strengths: Largest seller of athletic footwear andathletic apparel in the world. Brings out the perfect combination oftechnology and fitness each year in itsproducts. Products are made not only in thepremium range but also in mid-range. The brand has been endorsed by manysports stars and movie celebs globally.swThreats:Opportunities: Reebok can expand more in thekids section Lifestyle section can be expandedand can be given more focus. More tie-ups with sports academiesand schools worldwide Tapping the growing interest ofsports in emerging economies canbe targeted by Reebok Reebok faces tough problem fromfake and duplicate sales. Being a popular brand means anycontroversy affects brand imageconsiderably. Customers who are on the lookoutfor just the styling and not veryconcerned about features oftenprefer to purchase cheapimitations.OT Competition by internationalbrands means limited market sharefrom Reebok. Fluctuating international currenciescan mean losses to the company. Fake imitations can cause loss tothe brand. Cannibalization with Adidas brandcan also affect Reebok's business.11
Conclusion & Recommendation: Reebok has been very cleverly playing its marketing strategy for last few years. It has been segmenting itsmarket very precisely and then aggressively promoting their products specifically to that segment. It has been offering its products at different price levels for different targeted segments. Thus, it tries tocover everyone from mass to class. In addition, Reebok can also explore the segment of formal wear, where it is not present at all. Withgrowing Indian economy and large number of working people, Reebok can very well tap this market. Reebok should promote Indians more to go for physical exercises, for which may be it canannounce monetary incentives as well, such as Discount coupons at Reebok outlets if one loose nkgs of weights in n number of days. Thus, we recommend Reebok to continue expanding its reach in new areas, geographies,segments and cover the whole class as well as mass.12
Future Challenges Fake shoes manufacturers and retailers are hampering the brand image as consumers have startedassociating the quality and performance of a fake product to the brand. Because in India we don’thave too many laws against counterfeit.Reebok is focusing singularly on women to come back into the game. However, most women don'ttake out time for themselves and put fitness as their last priority. So Reebok has to think of moremarketing ideas. Though Reebok has a lot of products which cater to specific sporting needs of customers thecompany has been hugely unsuccessful in educating customers with the result that the brand hastoday largely become associated with sneakers. A drastic shift has been witnessed from the mainstream lace-ups and slip-ons to styles such asmonk straps, oxfords, brogues and tassels. Make In India Mission by Government of India is anticipating India to become amongst top 5superpowers by 2030, our consumption rates can reach as high as 7-8 pairs. In such a scenario,India would need to produce anywhere between 8-10 billion pairs considering yearlypopulation growth. Domestic shoe manufacturers are all set to capture the Indian market as they havemade significant gains in the recent past and it continues to be on an uptrend.13
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SWOT Analysis Conclusion . 3 Segment: Geo: Reebok chose to operate on Pan India basis. Within India it segmented locations as per the consumers' needs. Age: Reebok India has segmented its product range as per the age of the consumers but the primary focus is on the age group of 21-30 years. Income: Reebok has product range for the lower income group as well as for high end .
