Company Profile Recbook

8/10/2019 Company Profile Recbook

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Synopsis

a. Topic of the Project

b. Rationale for the study

c. Objectives of the Study

d. Research Methodology to be used for carrying out the study

(dealing nature of data, data sources, collection methods,

tools and techniues of analysis, sampling, cauteri!ation etc."

e. The e#pected contribution from the study.

f. $imitation.


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Reeboks

% Reeboks principal business activity is to design,

development & worldwide marketing of high quality

footwear, apparel, equipment.

% Distributed around the world: !sia, !ustralia, "anada,

#urope, $atin !merica, and the %nited tates'

% Reebok is (rd largest seller of athletic footwear and

athletic apparel in the world.

% Remain market leader since )**+

% #mployees: *,)- only in %!.

HISTORY OF REEBOK

1890-1930's

Reeboks %nited /ingdom0based ancestor company was

founded for one of the best reasons possible: athletes

wanted to run faster. o, in the )1*s, 2oseph 3illiam 4oster

made some of the 5rst known running shoes with spikes in

them. 6y )1*7, he was in business making shoes by hand for

top runners8 and before long his 9edgling company, 2.3.

4oster and ons, developed an international clientele of

distinguished athletes. he family0owned business proudly

made the running shoes worn in the )*-; ummer


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1950-1980

>n )*71, two of the founders grandsons started a companion

company that came to be known as Reebok, named for an

!frican ga?elle. >n )*@*, Aaul 4ireman, a partner in an

outdoor sporting goods distributorship, spotted Reebok

shoes at an international trade show. Be negotiated for the

Corth !merican distribution license and introduced three

running shoes in the %.. that year. !t +, they were the

most eEpensive running shoes on the market.

1980's

6y )*1), Reeboks sales eEceeded ).7 million, but a

dramatic move was planned for the neEt year. >n )*1-,

Reebok introduced the 5rst athletic shoe designed especially

for women8 a shoe for a hot new 5tness eEercise called

aerobic dance. he shoe was called the 4reestyleF, and with

it Reebok anticipated and encouraged three maGor trends

that transformed the athletic footwear industry: the aerobic

eEercise movement, the in9uE of women into sports andeEercise and the acceptance of well0designed athletic

footwear by adults for street and casual wear. #Eplosive

growth followed, which Reebok fueled with new product

categories, making Reebok an industry leader.


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>n the midst of surging sales in )*17, Reebok completed its

initial public oHering stock symbol is CI#: R6/'. ! year

later, Reebok made its 5rst strategic acquisition, he

Rockport "ompany. Rockport was a pioneer in using

advanced materials and technologies in traditional shoes

and the 5rst company to engineer walking comfort in all

types of dress and casual shoes. >n the late )*1s, Reebok

began an aggressive eEpansion into overseas markets and

Reebok products are now available in more than )@

countries and are sold through a network of independent andReebok0owned distributors.

"reating innovative products that generate eEcitement in the

marketplace has been a central corporate strategy ever

since Reebok introduced the 4reestyle. >n the late )*1s, a

particularly productive period began with he AumpJ

technology and continues today, with breakthrough conceptsand technologies for numerous sports and 5tness activities.

1990's

>n )**-, Reebok began a transition from a company

identi5ed principally with 5tness and eEercise to one equally

involved in sports by creating several new footwear and

apparel products for football, baseball, soccer, track and 5eld

and other sports. hat same year, Reebok began its

partnership with golfer


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>n the late )**s, Reebok made a strategic commitment to

align its brand with a select few of the worlds most talented,

eEciting and cutting0edge athletes. ince then, the company

has focused on those athletes who represent the top echelon

of sports and 5tness.

1999-2000

>n )***0-, Reebok and the Cational 4ootball $eague

announced an eEclusive partnership that serves as a

foundation of the C4$s consumer products business. he

C4$ granted a long0term eEclusive license to Reebok

beginning in the -- C4$ season to manufacture market

and sell C4$ licensed merchandise for all (- C4$ teams. he

license includes on05eld uniforms, sideline apparel, practice

apparel and an C4$0branded footwear and apparel collection.

Logos


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Pro!"#s


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Br$%s

% Reebok >nternational

% Rock Aort

% R6/ ""K Bockey 3orlds largest'

%


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% DKM-

% (D %ltralite

% Ralph $auren !pparel line

Reebok S#o"k I%&or$#(o% )*YSE-RBK+

% tock ymbol: R6/.

% 3ent public in )*17 and is traded on the Cew Iork

tock #Echange.

% hare Arice

-+ +*.+-

-@ 71.()

-1 7+.*@

-* 7+.7(


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REEBOK'S ,ISIO*

Reebok is dedicated to providing each and every athlete 0

from professional athletes to recreational runners to kids on

the playground 0 with the opportunity, the products, and the

inspiration to achieve what they are capable of. 3e all have

the potential to do great things. !s a brand, Reebok has the

unique opportunity to help consumers, athletes and artists,partners and employees ful5ll their true potential and reach

heights they may have thought un0reachable.


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PROPOSE ,ISIO* ST.T/E*T

N"ontinue to bring inspiration to present and future athletes,

while maintaining the companys standard of quality for its

products.O

REEBOK'S /ISSIO*

.$s 4$e%ge $% Le$ #4ro!g4 re$#((#

!t Reebok, we see the world a little diHerently and

throughout our history have made our mark when weve had

the courage to challenge convention. Reebok creates

products and marketing programs that re9ect the brands

unlimited creative potential.


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PROPOSE /ISSIO* ST.T/E*T

o continue to oHer quality products with increasing growth

in the industry and eEpanding globally. Lur mission has

always been to provide a competitive edge by developing

the most technological products. /eeping in mind fair labor

practices in all our suppliers factories, while maintaining a

competitive advantage, with the shareholders interests, and

company pro5ts in mind. 3e also believe our employees are

one of our most important assets. o increase the

responsibility towards the environment by evaluating the

impact of day to day operation and attempts to change

operations that have a negative impact.

/$rke# Sege%#$#(o% T$rge#(%g $%

Pos(#(o%(%g

#ver since it established a presence in >ndia in )**7, Reebok

has dominated the >ndian sportswear market. 3hile its maGor

competitors !didas and Cike have not been as successful in


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the >ndian market. !s a consumer0driven brand, Reebok

commits to oHer consumers products that provide maEimum

5t and comfort. 4or Reebok this means designing and

developing products with materials, styles and technologies

that enhance 5t and comfort for consumers.

he Reebok segment is comprised of the Reebok brand,

Reebok0""K Bockey and Rockport. >n -1, the Reebok

brand has further re5ned its strategy considering the brands

heritage and values, consumer insights and positioning

within the !didas nspired by its roots in

sport and womens 5tness, Reebok developed a clear

roadmap for its key businesses going forward: Lwn 3omens

4itness, "hallenge Kens port and Revive "lassics. "entral

to Reeboks brand heritage is the courage to challenge

convention. %nlike many other brands, Reebok is committed

to make 5tness fun again P challenging men and women toful5ll their potential in sport and in life by providing them

with the opportunity, the products and the inspiration to

have fun staying in shape.

he depth of Reeboks >ndia operations is re9ected in the

numbers. he company says it is growing at a compounded

annual rate of ( per cent for the past (0; years8 in -@, itsays, it crossed Rs * crore in sales. Reebok has segmented

its market on the basis of the needs of the consumer groups

like runners, !erobicQ5tness eEercisers, ennis players,

6asket 6all players,


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"hildren, "omfortQtyle conscious group. 4or each particular

segment of group they oHer unique range of shoes

products' and continuously come up with new line of shoes.

he shoes they oHer are like running shoes, !erobic shoes,

ennis shoes, 6asket 6all shoes, /ids shoes, 3alking shoes,

raining shoes, n -*, Reebok launched a new range of shoes

especially for women who are busy and dont 5nd time to

gym. he #asyoneF footwear collection was launched forthe targeted group of busy women. >n -* for men Reebok

launched the electRideF, an underfoot cushioning

technology that allows the athlete to select the NtrainO or

NrunO mode.

Research pointed that Reeboks target age )70-; were early

adoptersQsneaker in9uencers. he price point was too large abarrier for the brand target and they were not in9uencing

other groups. >f they went after a sub0target group more

interested in, and willing to pay for custom, they could not


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only achieve their goals, but likely surpass them by tapping

into the in9uencer capabilities of this group.

hey successfully increased brand awareness, trac and

sales and engaged users through a highly targeted,

segmented approach to selling Reeboks custom sneakers.

he tagline N> am what > amO became a promise to the

consumer that Reebok was a brand that enabled self0

eEpression

Kedia placements included areas where users consumed

trend news, popular sneaker sites, music sites, electronics

and apparel fashion sites to reach this targeted audience.

Lnline banner creative emphasi?ed the key selling feature of

the shoe allowing users to customi?e the shoe with a few

clicks including color choice within the banner and ultimately

be driven to the custom website to 5nali?e the process and

buy their personally designed shoes.

Pos(#(o%(%g

o reinforce its position as a premium sports and lifestyle

brand, Reeboks goal is to signi5cantly improve and increase

its product oHering at high and mid0price points to drive

growth in average selling prices. his approach may slow the


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targeted short0term top0line development by voluntarily

foregoing commercial opportunities in the low0price

segment. Kore importantly, however, it enables Reebok to

build a platform for sustainable long0term sales and

pro5tability growth and preserves the brands image.

eebr$#e I%((!$(# (% S6or# $% L(&e

Reebok understands that people are, above all, unique.

Reeboks positioning re9ects this8 celebrating the distinct

qualities that make people who they are 0 their unique points

of view, their individual style and their remarkable talents

and accomplishments. Reebok celebrates their individuality,

their authenticity and the courage it takes to forge their own

path to greatness. 3hile some may call them cra?y or

eccentric, Reebok calls them visionary and original.

Reebok Pro!"# /(7

Reebok oHers a wide range of 4ootwear, "lothing and

!ccessories for both Ken and 3omen. >n the footwear

product miE it oHers in !thletic, "asual and "ourt in a color

range like black, brown, grey, white, blue and pink. he

footwear miE is oHered both in men and women. >n the


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clothing, Reebok oHers like Gackets, tops and bottoms for

both men and women for activities like yoga, tennis, walking,

5tness and training. !ccessories like bags, sippers, caps.

he Reebok brand focuses on three product lines: Rbk,

Aerformance, and "lassic. Rbk product line features street

footwear, apparel, and accessories. Aerformance line

includes apparel and footwear designed for basketball,

running, 5tness, football, soccer, tennis, and other sports.

"lassic lifestyle product line includes footwear and apparel

products, as well as classic reinterpretations. Reebok also

has licensees for eyewear, watches, and heart rate monitors8

and licensees in the %nited tates for childrens apparel,

team uniforms, socks, and Gogging strollers. he Ralph

$auren 4ootwears product line features traditional classics,

as well as dress and casual silhouettes. he


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REEBOK'S PRPOSE

To E6oer ob$ Yo!#4 #o F!: #4e(r Po#e%#($

Reebok recogni?es that it has a responsibility to make a

positive, lasting diHerence in the lives of our consumers,

employees, partners and the world at large. 4or two

decades, Buman Rights, through the Reebok Buman Rights

program, were the primary focus of this eHort. >n -@,

Reebok eEpanded on what had been built and created a


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E"o%o(" Per&or$%"e )S$es b reg(o%s+

*e# S$es;; *e# I%"oe

2008 < 3=>?1 / < 135@12

47 M258 M267 MOther countries

510 M585 M476 MEurope

661 M522 M545 MUK

2,000 M1,858 M1,609 MUSA

201020092008


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2009 < 3=223 / < 23@92

2010 < 2=89A / < 11@0?

% *e# s$es e"re$se)2008 #o 2010+


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!dvertisement campaign

De$k%esses

Rely on retail stores to sell products

>ssues with foot lockers

Aoor employment practices at their international

manufacturing sites

Beavy dependency on footwear sales

IFE )I%#er%$ F$"#or E$!$#(o%+ /$#r(7

I%#er%$ s#re%g#4 De(g

4#

0@0-

1@0

R$#(

%g

1-?

De(g4#e

S"ore

)D7R+

Aro5ts increasing .7 ( .)7

Aaul 6. 4ireman "#L .) ; .;

"arl 2.Iankowski, #VA .) ; .;

eams more connected to the

consumer

.7 ; .-

Kulti0brand strategy .7 ; .-


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Dedication to employees .7 ( .)7

Bydro mover moisture

technology

.) ; .;

DKM technology .) ; .;

; maGor divisions & + 6%s .7 ( .)7

!dvertisement campaign .7 ( .)7

I%#er%$ De$k%ess De(g

4#

R$#(

%g

De(g4#e

S"ore

Rely on retail stores to sell

products

.7 ) .7

>ssues with foot lockers .7 ) .7

Aoor employment practices at

their international manufacturing

sites

.) - .-

Beavy dependency on footwear

sales

.) - .-

To#$ )(%"!(%g S#re%g#4s

De$k%esses+

1@00 3@20

O*LSIO*

Reebok gain (.- >4# total weighted score which is above

-.7 thatSs why Reebok is >nternally very strong


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Ke E7#er%$ F$"#ors .Ce"#(%g Reebok

O66or#!%(#(es

#stablished obGectives

Result0oriented culture

trengthen management team

"ontempori?e products

Relevant advertising and marketing campaigns

ts a 3omans 3orldO P young women


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Nhe ounds and Rhythm of port.O P fashion

consumers

Cational 4ootball $eague campaign

"hanged leadership for dicult brands

!bility to create synergy between brands

pecial echnology

T4re$#s

trong % dollar

3eak department store channel

4oreign market is suHering

#conomic decline in key markets

"hinese products

trong "ompetition

EFE )E7#er%$ F$"#or E$!$#(o%+ /$#r(7

O66or#!%(#(es De(g

4#

0@0-

1@0

R$#(

%g

1-?

De(g4#e

S"ore

)D7R+

#stablished obGectives .)7 ; .+


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Restructured production creation

teams

.7 - .)

N>ts a 3omans 3orldO P young

women

.) ( .(

Nhe ounds and Rhythm of

port.O P fashion consumers

.7 - .)

Cational 4ootball $eague

campaign

.7 - .)

"hanged leadership for dicult

brands

.7 ) .7

!bility to create synergy

between brands

.( ) .(

pecial echnology .) ; .;

T4re$#s De(g

4#

R$#(

%g

De(g4#e

S"ore

trong % dollar .) - .-

3eak department store channel .( ) .(

4oreign market is suHering .7 - .)

#conomic decline in key markets .7 - .)

"hinese products .* - .)1

trong "ompetition .) - .)


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To#$)O66or#!%(#(es

T4re$#s+

1@00 2@38

o%"!s(o%

Reebok gain -.(1 #4# total weighted score which is above

-.7 thatSs why Reebok is #Eternally facing strong

competition.

o6e#(#(e 6ro:e $#r(7


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.#4e#(" /$rke# S4$re


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Tos /$#r(7

S-O s#r$#eg(es

%se the eEpertise and eEperience of 4ireman and

Iankowski to carryout obGectives -, (, L)'

4urther increase pro5ts by utili?ing the restructures

production creation teams ), L@'

4urther strengthen the multi0brand strategy with

planned campaigns 7, L(, L;, L7'

4urther strengthen the multi0brand strategy with

changed leadership and synergy to grow quality market

share 7, L+, L)), L)-'

S-T s#r$#eg(es

%tili?e the teams connection to the consumer to

counteract sales lost because of the strong % dollar,

weak department store channels, and suHering foreign

market ;, ), -, ('

%tili?e multi0brand strategy to 5nd a connection to

foreign markets 7, ('


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%se the increased pro5ts to research other pro5table

markets to strengthen the foreign market and avoid the

negative eHects of declining key markets ), (, ;'

D-O s#r$#eg(es

trengthen obGectives to curb the eHect on heavy

dependent brands L), 3;'

%tili?e the changed leadership to correct dicult brands

L)), 3;'

trengthen campaigns to correct dicult brands and

lessen the need to rely on department stores L(, 3),

3;'

D-T s#r$#eg(es

Kaintain brands to lessen the eHect of the % dollar

and foreign markets 3;, ), ('

trengthen brands to be less dependent on department

store channels 3;,3), -'

$essen the reliance on retail stores to avoid the eHects

of weak department store channels 3-, -'

Aromote brands in diHerent markets to lessen the

reliance on suHering key markets 3;, ;'


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o%"!s(o%s

! maGor weakness of Reebok is located in their top

management. hey lack top management depth and face

high management turnover. his is attributed to the "#L,

Aaul 4iremans inability to delegate eciently. /ey

employees and top management were sometimes left out of

the =loop=. !dditionally, the board of directors felt 4iremans

salary was too high.


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>n advertising, Reebok had diculty positioning itself.

Reebok changed advertising agencies eight times and they

earned a reputation as a dicult client. Reebok aimed to

diHerentiate its shoe and apparel lines and hired haquille

LCeal as a superstar endorser. hen Reebok changed

advertising agencies and haqs new role was contradictory

to the old.

Reebok largest customer is 4ootlocker, yet they established

poor relations with them, when they ignored their request to

manufacture a specialty line eEclusively for 4ootlocker.

Reebok was a poor listener to 4ootlocker, which has a good

ear to consumer wants and needs.

S!gges#(o% Re"oe%$#(o%s

>mmediately, Reebok should drastically improve its relation

with its largest distributor 4ootlocker. hen evaluate its

manufacturing situation in the 4ar #ast, to see if the bene5ts

outweigh the costs of a lowered reputation. he 5rms RL>

has decreased and they need to manage their new assets

better. 3e would recommend a brief turnaround strategy.


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"ontraction would include increasing their accounts

receivable turnover to increase pro5ts by collecting their

accounts sooner and divesting in unpro5table divisions that

dont follow their marketing strategy like the health and

5tness clubs. hen in the "onsolidation phase they can

measure their success by aiming for increases in their 5Eed

asset turnover and RL> ratios.

$astly, and most importantly, Reebok needs to improve their

top management environment and utili?e the skill that they

are paying for. >gnoring delegation duties in the top

management will not reduce the management turnover and

will limit managements progress.

Reebok has a strong name and even stronger campaign

plans. Bowever, the company has a few areas that need to

be analy?ed and corrected. he areas include:

Reliance on department store channels

uHering foreign markets

4ind markets that are not in an economic decline

trengthen the brand name and message of suHering

brands

Ceed strong goals and plan to grow the sales & global

reputation

6y changing advertising agencies frequently, Reebok

has dug themselves in a marketing hole. o accomplish


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their current goals they need to produce better

marketing campaigns.

"hange Kanagement.

e"(s(o%s

Pr($r 4ocus on 5nding the most promising customers

kids and women' and introduce more products or improve

current ones to satisfy potential increase in demand

.#er%$#(es

/eep eEpanding into current and future foreign markets

by being aggressive and the worldwide leader of the

footwear industry

!ccelerate funding for numerous marketing campaigns

in order to get to speci5c markets or customer groups

4ocus on improving working conditions and human

rights at international manufacturer centers and at the

same time increasing their productivity

>mplement product diversi5cation with companys

newest technologies so resulting increased earnings

could be reinvested into R&D plans

D4 T4(s S#r$#egG


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%.. 3omen: Arefer fashion, not footwear, they prefer

clothing8 we must create a shopping style based in

athletic shopping.

%.. /ids: #0commerce, in9uenced by innovation and

design, not only comforts or sports

Reebok need to consolidate % sales compared to

international sales and international competitors

Dicult to eEpand towards other sports or population

segments

I6ee%#$#(o%s )."#(o%s+

Women

Lpen speci5c stores speciali?ed only for women

>ncrease R&D eEpenses by in women products

>ncrease Karketing eEpenses by designing a speci5c

campaign for women using female endorsements

"reate a new logo for women market which would be

associated with fashion trends and introduce new

products

Kids

>ncrease R&D eEpenses in kids products

>ncrease Karketing eEpenses by designing a speci5c

campaign for kids


34/46

>ntroduce more soccer and basketball products

targeting potential youth market

Research in international market to 5nd out what are

the new trends related with women and kids products

$ong0term'

B(b(ogr$64

S4$r$ @@ : Karketing research Arinciples,

!pplication and cases , ultranchand and ons Cew

Delhi.

Ko#er= P4((6s -', Karketing Kanagement,

Arentice P Ball of >ndia Avt. $td. Cew Delhi.

Ko#4$r(= @R@ : research methodology, Kethods andechnology, 3ishwa Arakashan, Cew Delhi.

Debs(#es

http:QQ5nance.yahoo.com

Reebok !nnual Reports

Reebok Wuarterly Reports

!nnual ranking of !mericas largest corporations

www.reebok.com

www.bigcharts.com


35/46

www.businessweek.com

www.wikkipedia.org

trategic Kanagement "oncepts and "ases8 4red R.David, )th #d.

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36/46

RESE.RH /ETHOOLOY

hese types of research design used proGect are

eEploratory. #Eploratory research is that in which new

relationship are discovered.

Design of "onclusive Research

S#! o& Se"o%$r so!r"es o& (%&or$#(o%-

DiHerent book of marketing and research served as

sources of information. he information from >nternet was

very useful as well.

urvey of individual with ideas on general subGect:0

>nformation was also collected from owner and distributor

of Reebok, which is base of this whole proGect.

$#$ oe"#(o% /e#4o-


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he method used to collect data is from primary sources.

his method is appropriate as compared to secondary data

available looking at the obGectives of the report.

he method used to collect data is a survey in which

questionnaire is prepared and is given to the respondent to

5ll it.

S$6(%g e#4o-

he universe of this research report consists of )

dealers and -7 customers those served as source of

information.

Rese$r"4 es(g%s-

Rese$r"4 T6e #Eploratory

$#$ oe"#(o% /e#4o Arimary &

econdary

,e%!e agar

Rese$r"4 .66ro$"4 urvey Kethod

Rese$r"4 I%s#r!e%# Wuestionnaire

S$6e S(e -7 "ustomers & )

Dealers


38/46

S$6(%g %(# respondents of

agar

.T. .*.LYSIS I*TERPRET.TIO*

O/P.RISIO* OF /.RKET SH.RE OF .TIO* SHOES

O,ER FOOTDE.R I,ISIO*

6ata 1T

!ction -+T

Reebok )+T

$akhani )-T


39/46

$iberty @T

Lther -1T

3oodland -T

$eecooper )T

/.RKET SH.RE OR ,.RIOS BR.*S .S PER

RET.ILER

!ction ((T

6ata )Tliberty -T

$akhani +T

Lthers ()T

3oodland (T


40/46

Reebok )7T

3ithout $aces 7(T

"asual -1T

3ith $aces ))T

6oot 1T


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4ormal ((T

"asual (+T

$adies +T

ports -7T


42/46

FI*I*S

he customer of Reebok shoes is very less in

comparison of other brand shoes.

6asically red chief provide best leather but it has no

stylish design in comperision of other brand.


43/46

Kost of the customers prefer p.u. sole incomperision of

other type of sole such as eva, tpr etc.

Reebok shoe sell its product from its dippo from which

it has no gud market over the up basicaly in Aune,

"handigarh.

he price range of market shoes between )-0(- is

maEimum icasso, and lee cooper etc.

he students are in9uenced with range, design, style

and comfertbility.

$ook of the leather shoes. 3here as the service class

person and business class person emphasi?e on more

price, quality, durability, discount Xif anyY and all

guarantee period.

Cew brands are emerging in the market other than

eEisting ones and they capturing some big market

share. these brands include franco, leone,

LI/IT.TIO*S OF STY

his Report is only based on S$g$r "(#.


44/46

Retailers hesitate to give the answer to some question

like pro5t margins

ome time respondent do not correct answer.

Koney is constraint to limit her scope of the study.

ime was also a constrain.

STO/ERS JESTIO**.IRE

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). 3hich "ompany brand do you useZ

a. !ction b. Reebok c. Red & "hief d. Lthers

-. 3hat do you think about the price of productZ

a. Bigh b. $ow c. Reasonable

(. Bow did you come to know about this brandZ

a. Cewspaper b. Kaga?ine c. .V. d.

Boardings

;. 3hat criteria you see when you purchase Rseebok hoesZ

a. 6rand Came b. Arice c. Wuality d. Lthers

7. Do you feel Reebok hoes price #conomicZ IesQ Co. &

3hy Z

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+. >f you purchase any other companys hoesZ 3hich one is

you preferredZ

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@. Do you have any complaintsZ Ies Q

Co 80000000000000000000000000000000000000000000000000000000000000000000000000000000

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1. 3hich facet of product should be focused more whether

product, quality, Arice, !dvertisement.

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Date:ignature

hanks for you co0operation & valuable time

Company Profile Recbook

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