Ib Project on Reebok(Final)

7/30/2019 Ib Project on Reebok(Final)

1/11

SUBMITTED BY:-

CHANDAN YADAV (317)

VIKAS KUMAR (356)

VED PRAKASH YADAV (355


2/11

Proff. - Amit Kumar

Background & History of Reebok Shoes

Reebok began in 1895 in a part of the UK as Bolton and the founders were Joe and Jeff

foster natives of UK.

The companys original name was Mercury sports but was renamed Reebok in 1958.

Reebok is a British producer of athletic footwear, apparel, and accessories. In January

2006, Reebok became a subsidiary of Adidas after the company acquired Reebok

International Limited for $8 billion.

The companys headquarters are in Boston, Massachusetts and the UK head office is

located in Lancaster.

Company with their growth story1982 marked the year that the first athletic shoe designed with women in mind wasintroduced to the market by Reebok. The shoe was called the Freestyle, and it wasdesigned for the latest exercise craze, aerobic dance. Reebok's sales had alreadysurpassed the $1.5 million point when the Freestyle caused the company to explode. In1985 Reebok went public and then in 1986 they bought The Rockport Company, a leaderin the development of comfortable casual and dress shoes. Reebok invaded theinternational market in the late 1980s and is currently sold in over 170 countries.

Partnering

Reebok shifted from a focusing solely on exercise to a company focused on exercise aswell as sports in 1992, when they created new clothing and shoes designed for alldifferent types of sports. The Greg Norman Collection was also birthed in 1992 when thegolfer partnered with Reebok. Greg Norman was just the beginning though, as Reebokcontinued to partner with top athletes in the late 1990s.

Recently

In 2000 Reebok partnered up with the NFL. 2002 marked the year when Reebok

designed clothing and shoes inspired by street fashion, these items were launched as theReebok collection. In 2003 Jay-Z and Reebok partnered to create the S. Carter Collectionby Reebok. In 2004 Reebok acquired The Hockey Company, snagging an agreement thatgives them the exclusive rights to make all on-ice jerseys for all the NHL teams. Themarketing campaign, "I Am What I Am," in 2005, which encouraged youth to appreciatetheir individuality, and featured many celebrities. Reebok was acquired by Adidas in2006, and Paul Fireman, the CEO, left the company, allowing for Paul Harrington tobecome President and CEO of Reebok. The "Your Move" marketing campaign was


3/11

launched in 2008, and set Reebok apart from other sporting goods manufacturers as acompany that celebrates individuality.

Drivers & Differentiation

(Distinguish with any one competitor)

Different drivers of globalization and they can basically be separated into five different

groups.

1:-Technological drivers

Technological shaped and set the foundation for modern globalization. Innovations

new technology like online shopping & advertising which all play very important roll in

selling of Reebok products.

2:-Cost drivers..

The cost factor like psychological pricing which is adopted by them like Rs

899.And also discount factors like flat discount of 25% on purchase of Rs1500+.

And also a kind of discount like Reebok Coupon CodesCustomersrate Reebok positively for its comfortable, lightweight footwear and custom-

made. Products.

3:-Competitive drivers.

With the industry experiencing such competition with Nike, Adidas, and the product

requiring intensive labor, firms are facing extreme pressure to increase their profit

margins through their sourcing practices.

Difference between Reebok and Nike

Reebok and Nike are two of the most recognizable sports equipment brands around,

and you would be hard pressed to find anyone in the world who hasn't heard of one or

both of these brands.

Reebok and Nike Fit, Support, Durability.

The winner in terms of ruggedness and durability

Tend to fit a lot better

Offers a snug fit that still provides adequate protection Nike

Tends to fall apart fairly quickly under heavy use


4/11

Has a reputation for producing some of the most balanced athletic shoes on the market.

Reebok and Vulcabras Form Joint Venture in Brazil & Argentina

The adidas Group and Vulcabras S.A. today announced that they

have agreed to form a joint venture company to conduct the distribution of

Reebok footwear, apparel and accessories in Brazil and Paraguay.

The joint venture company will commence operations on April 1,2008. Financial results of the joint venture are planned to be fully

consolidated within the adidas Group as of April 1, 2008. The joint ventureagreement expires at the end of 2015.

Franchise Opportunities

Category:-RetailArea Req : - 1200-2000 (1 Sq Mtr = 10.76 Sq Ft.) No. of Fanchise

Outlets : 700. Investment : Rs. 50 lac - Rs 1cr.

Clothing and footwear of the Reebok India franchise

This clothing and footwear business makes clothing in all sizes ranging from small to XL and

above, wherein the women's size range from small to XL and the mens sizes range from small

to XXL in certain styles. Thefootwear franchiseprovides a range of footwear such as foradventure, basketball, and casual and cross training.

Adidas-Reebok Merger: A Good Fit

Their merger could put the combined outfit on the fast track. Then again, Nike may still

prove to agile to catch
http://www.franchisebusiness.in/t/Clothing-Footwear-Franchiseshttp://www.franchisebusiness.in/t/Clothing-Footwear-Franchiseshttp://www.franchisebusiness.in/t/Clothing-Footwear-Franchiseshttp://www.franchisebusiness.in/t/Clothing-Footwear-Franchises


5/11

It makes too much sense not to happen. A combination of Reebok International (RBK) and Adidas-

Salomon AG (ADDYY), announced Aug. 3 by the two companies, is one of those mergers with which it's

difficult to find fault.

AS usual reebok is also use the three stage of iplc

1:- Introduction stage:-..Reebok has been providing athletes with quality goodssince 1895, when it began with running shoes. Since that time Reebok has changedowners, expanded their brand and made some key partnerships, all while still providingathletes with quality products.

In that stage they firstly start their production and selling only in their parent country us.

And after that . In 1985 Reebok went public and then in 1986 they bought The RockportCompany, a leader in the development of comfortable casual and dress shoes. Reebokinvaded the international market in the late 1980s and is currently sold in over 170countries.

2:- Maturity stage:-.When they created new clothing and shoes designed for alldifferent types of sports. The Greg Norman Collection was also birthed in 1992 whenthe golfer partnered with Reebok. Greg Norman was just the beginning though, asReebok continued to partner with top athletes in the late 1990s.

Reebok are start giving franchise , joint venture & merging with other company.

3:- Standardizing stage:-.For standardize their product they startadding some new innovation in reebok production like reezig,.,.,.

ReeZig reduces a lot of the wear and tear on your legs which sounds like it couldhelpful .

In this stage reebok start opening their manufacturing units in new country (host)
http://%20void%20showticker%28%27rbk%27%29/http://%20void%20showticker%28%27rbk%27%29/http://%20void%20showticker%28%27rbk%27%29/http://%20void%20showticker%28%27addyy%27%29/http://%20void%20showticker%28%27addyy%27%29/http://%20void%20showticker%28%27addyy%27%29/http://%20void%20showticker%28%27addyy%27%29/http://%20void%20showticker%28%27rbk%27%29/


6/11

Reebok Economic/ Political/ Technological Issues in IB

This will consider environmental influences on the organization, both in the past and with future

strategic plans.

Political

Political unrest in the production countries

Terrorism in the home country

Economic

Slow down in the economy

Reduction in consumer confidence

Contract manufacturing

Socio-cultural

Brand conscious consumers

Change in buying habits in younger people

Corporate social responsibility

Technological

Speed of change of product

Design Ability

Speed of News reporting

Environmental

Re use a shoe

Sustainability philosophy

Climate impact


7/11

In a season of economic reforms, the government has yet again brought about a

major policy change; now in the retail sector. It has allowed for 100% Foreign Direct

Investment (FDI) in single brand retail, and allowed for 51% FDI in multi-brand retail.

Before, only 51% FDI in single brand retail had been allowed meaning the individual

companies like Reebok, Levis were allowed to open up their stores in India. However,

no FDI in multi-brand retail was allowed, except in the cash and carry segment.

NEW TRENDS/ PROJECTS OVERSEAS

Reebok is basically internally strong organization.

It develop a more detailed plan grow sales.

Reebok Suffering foreign markets.

Find market that is not in economic decline.

Strong goals and plan to grow the sales & global reputation.

By changing advertising agencies frequently, Reebok has dug

themselves in a marketing hole.

PROJECTS OVERSEAS

Customization of product like reezig.

Focus on finding the most promising customers (kids and woman) and

introduce more products or improve current ones to satisfy potential

increase in demand.

Improve product diversification with companys newest technologies

so resulting increased earning could be reinvested in to R&D plans.

Keep expanding in to current and future foreign markets by being

aggressive and the worldwide leader of the footwear industry.

Come up with new strategy to expand towards other sports or

population segments.


8/11

Culture is part of the external impact that influence the customer. That is culture

represents effect that are put on the consumer by other individuals.

The Reebok brands, which have started as a local brand are now well accepted as

a world brand. These brand are well attached to the culture of the country.

The problems comes when to spread and extend the same culture to other

countries. The purchasing action assessment will be essential to know for

marketers.

The Reebok brand are communicated to the consumers according to in the

culture of the country. How can be a consumer across the culture different from

each other. Can there be and extension of consumer behavior along with a

product or services of one country to another country.

The marketers introduce the new product and services to the market and they tryto exploit the exposure gained by the new culture.

The most important situation is the consumer presents their attitude about the

foreign products and how much consumers are influenced with their won

culture.

The various dimension of culture which affect the buying decision of company

The age group and culture will affect each other.

The country and society is also have influencing situation towards the

culture.

Subculture also place and important role in deciding the culture

dimension of customer.


9/11

PRODUCT-LINES

Strategic management is a set of managerial decision and

action that determines the long run performance of a firm.

Reebok made some adjustments in its marketing strategy in India, Reebok was

very cautious while entering the Indian market. Reebok positioned them self as

life style products.

Subhinder Singh, managing director, Reebok India, creating a motivating and

relevant brand position in India would increase the sell volume. However, the

parent country had issued a mandated that its Indian subsidiary should stick to

the companys vision of instilling fitness consciousness among people, at the same

time stay focused on maintaining its leadership position in India.R

Product Extension

Create a new product that builds off your established brand image. For

example, Reebok is known for athletic footwear. Reebok extended thisimage and created Reebok Fitness Water to diversify its product line andbuild off the success of its shoe line.

Product Modifications

Product modifications such as color or different features can help diversifyyour product offers. For example, Heinz expanded its ketchup offerings toinclude colored ketchup in purple and green. These products targeted

consumers with children to capture additional market share. Consider aproduct modification strategy if you have budgetary constraints, or if slightmodifications could lead to expanded market share or reinvigorate yourexisting product's image.


10/11

BENEFITS/MOTIVES BEHIND INTERNATIONAL

BUSINESS

Following are some main benefits & motive behind international

business.

BENEFITS / MOTIVES..............

As we know that reebok is internationally excepted product.

When reebok product is introduce in united state in 1895.

After some time REEBOKstart doing their business in other nation also with help

of joint venture with Vulcabras & adidas due to demand factor which they

received from other nation.

The main Benefits / Motives of reebok to do their business in deferent country is

following.

Enhances the domestic competitiveness

Takes advantage of international trade technology

Increase sales and profits

Extend sales potential of the existing products

Maintain cost competitiveness in your domestic market

Enhance potential for expansion of your business

Gains a global market share

Reduce dependence on existing markets

Stabilize seasonal market fluctuations


11/11

CONCLUSION OF OVERALL COMPANY PERFORMANCE AND

FUTURE INITIATIVES IN INTERNATIONAL BUSINESS

Reebok is dedicated to providing each and every athletes fromprofessional athletes to recreational runners to kids on theplayground.

As a brand, reebok has the unique opportunity to help consumers,athletes and artists, partners and employees fulfill their true potentialand reach height s they may have thought un-reachable.

Continue to bring inspiration to present athletes,while maintaining the companys standard of

quality for its product

To continue to offer quality products with increasing growth in the industryand expanding globally. Our mission has always been to provide acompetitive edge by developing the most technological products. Keepingin mind fair labor practices in all oursuppliers factories, while maintaining acompetitive advantage, with share holders interests, and company profits inmind. To increase the responsibility towards the environment by evaluatingthe impact of day to day operation and attempts to change operation thathave a negative impact.

Ib Project on Reebok(Final)

Documents

Transcript of Ib Project on Reebok(Final)