A

PROJECT
ON
STRATEGIC MANAGEMENT (REEBOK COMPANY)
SUBMITTED BY
YATRI CHANDRESH SHAH
ROLL NO: 126
(M.COM, SEM-1)
PROJECT GUIDE
MS. RASHMI BHATTACHARYA
SUBMITTED TO
UNIVESRSITY OF MUMBAI
RAJASTHANI SAMMELANS
GHANSHYAMDAS SARAF COLLEGE
OF ARTS & COMMERCE
AFFILIATED TO UNIVERSITY OF MUMBAI
REACCREDATED BY NAAC WITH AGRADE
S.V.ROAD, MALAD (W)
MUMBAI -400064
A.Y. 2015-2016

RAJASTHANI
SAMMELANS
GHANSHYAMDAS SARAF COLLEGE
OF (ARTS & COMMERCE)
AFFILIATED TO UNIVERSITY OF MUMBAI
REACCREDATED BY NAAC WITH AGRADE
S.V.ROAD, MALAD (W)
MUMBAI -400064

CERTIFICATE
I Prof. MS. RASHMI BHATTACHARYA here by certify
that YATRI CHANDRESH SHAH a student of
Ghanshyamdas Saraf College of arts &
commerce, m.com-1 sem-1 has completed
project on STRATEGIC MANAGEMENT (REEBOK
COMPANY) in the academic year 2015-2016.
Thus information submitted is true and original to
the best of my knowledge.
Project
Principal:
Date:
External Examiner:

guide:

Date:
College seal:
ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY

OF MUMBAI for giving me a chance to do this
project.
I express my sincere gratitude to the principal
DR. SUJATA KARMARKAR, chief co-coordinators
MS. RASHMI BHATTACHARYA, teaching faculty and
our librarian for their constant support and
helping for completing the project.
My deep sense of gratitude to the staff and
employees of for their support and gratitude.
I am also grateful to my friends for giving me
moral support during the course of my project
work. Lastly, I would like to thank each and every
person who helped me in completing the project
successfully especially MY PARENTS.

Student signature

DECLARATION

I YATRI CHANDRESH SHAH a student of

Ghanshyamdas Saraf college of arts &
commerce, malad(w) M.COM-1 sem-1 hereby
declare that I have completed project on
STRATEGIC MANAGEMENT (REEBOK COMPANY)
in
the
academic
year
2015-2016.
This
information submitted is true and original to best
of my knowledge.

Date:
signature of student

Executive summary:

Reebok is an
American-inspired, global brand that creates and
markets sports and lifestyle products built upon
a strong heritage and authenticity in sports,
fitness and womens categories. The brand is
committed to designing products and marketing
programs that reflect creativity and the desire to
constantly challenge the status quo. From the
study it is also concluded that, most of the
people prefer Reeboks shoes and even Indian
cricket players uses Reeboks bats. Last but not
the least, it is concluded that the market position
of Reebok is much better than other companies

Research Methodology:

S
P
O
R
E
IU
C
R
M
O
N
C
A
E
R
D
Y
A
O
R
F
D
Y
A
D
T
A
T
A

PRIMARY IS NOT DONE BECAUSE OF SHORT

TIME AND LESS INFORMATION

I ADOPTED THE SEC ONDARY DATA WHICH I

WILL FIND EITHER FROM BOOKS OR FROM
OTHER WEBSITES .SECONDARY DATA

INDEX
SR. NO. CHAPTERS
1

PAGE
NO.
OVERVIEW OF REEBOK COMPANY 1

INTRODUCTION

2-3

HISTORY

4-8

PRODUCTS & SERVICES

MISSION & VISION

10

FEATURES

11

SWOT ANALYSIS

12-15

COMPETITORS ANALYSIS

16

ACHIEVEMENTS

17-19

10

CONCLUSION

20

11

BIBLIOGRAPHY

21

Overview of Reebok Company:

Reebok principal business activity is to

design, development & worldwide marketing
of high quality footwear, apparel, &
equipment.
Distributed around the world : (Asia Australia
Canada Europe Latin America and the united
states)
Reebok is 3rd largest seller of athletic
footwear and athletic apparel in the world.
Remain market leader since 1996.

Introduction of Reebok Company:

Reebok is an
American-inspired, global brand that creates and
markets sports and lifestyle products built upon
a strong heritage and authenticity in sports,
fitness and womens categories. The brand is
committed to designing products and marketing
programs that reflect creativity and the desire to
constantly challenge the status quo
Reebok positioning: Celebrate Individuality in
Sport and Life
Reebok understands that
people are, above all, unique. Reeboks
positioning reflects this; celebrating the distinct
qualities that make people who they are - 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. While some may call them
crazy or eccentric, Reebok calls them visionary and
original.

 REEBOK'S PURPOSE: To Empower

Youth to Fulfill their Potential

Global

Commitment to Corporate
Responsibility is an important legacy and hallmark of
the Reebok brand. For two decades, Human Rights,
through the Reebok Human Rights program, were the
primary focus of this effort. Reebok has expanded on
what had been built and created a Global Corporate
Citizenship platform with a purpose for the brand that
will help underprivileged, underserved youth around
the world fulfil their potential and live healthy, active
lives.
REEBOK'S BRAND TERRITORY: Having Fun
Staying in Shape
Having Fun Staying in
Shape comes to life through a fun, bold, provocative
manner expressed through fresh, eye catching
imagery signed off with a unique 'Reeword.' The tone
and manner allows the consumer to look at sport and
lifestyle through our lens of 'Ree.'

History of Reebok Company:

1890-1930': SJ.W. Foster and Spikes of Fire

Reebok's United Kingdombased ancestor company was founded for one of the
best reasons possible: athletes wanted to run faster.
So, in the1890s, Joseph William Foster made some of
the first known running shoes with spikes in them. By
1895, he was in business making shoes by hand for
top runners; and before long his fledgling company,
J.W. Foster and Sons, developed an international
clientele of distinguished athletes. The family-owned
business proudly made the running shoes worn in
the1924 Summer Games by the athletes celebrated
in the film "Chariots of Fire.1950-1980A Gazelle
Named Reebok, A Company on the Move In 1958,
two of the founder's grandsons started a companion
company that came to be known as Reebok, named
for an African gazelle. In 1979, Paul Fireman, a
partner in an outdoor sporting goods distributorship,
spotted Reebok shoes at an international trade
show. He negotiated for the North American
distribution license and introduced three running
shoes in the U.S. that year. At $60, they were the
most expensive running shoes on the market.
4

 1980's:

By 1981, Reebok's sales exceeded

$1.5 million, but a dramatic move was planned for
the next year. In 1982, Reebok introduced the first
athletic shoe designed especially for women; a shoe
for a hot new fitness exercise called aerobic dance. In
the midst of surging sales in 1985, Reebok completed
its initial public offering (stock symbol is NYSE: RBK).
In the late 1980s,Reebok began an aggressive
expansion into overseas markets and Reebok
products are now available in more than 170
countries and are sold through a network of
independent and Reebok-owned distributors.
1990's:

In 1992, Reebok began a transition

from a company identified principally with fitness and
exercise to one equally involved in sports by creating
several new footwear and apparel products
for football, baseball, soccer, track and field and other
sports. That same year, Reebok began its partnership
with golfer Greg Norman, resulting in the creation of
The Greg Norman Collection.
2000:

In 2000, Reebok and the National

Football League announced an exclusive partnership
that serves as a foundation of the NFLs consumer
products business. The NFL granted a long-term
exclusive license to Reebok beginning in the 2002
NFL season to manufacture market and sell NFL
5

licensed merchandise for all 32 NFL teams. The

license includes on-field uniforms, sideline apparel,
practice apparel and an NFL-branded footwear and
apparel collection.
2001:

In 2001, Reebok formed a long-term

strategic partnership with the National Basketball
Association
under
which
Reebok
designs,
manufactures,
sells
and
markets
licensed
merchandise for the NBA, the Womens National
Basketball Association (WNBA) and the National
Basketball Development League (NBDL), the NBA
minor league. Reebok also had exclusive rights, with
limited exceptions, to design, manufacture, and
market and sell headwear, T-shirts, fleece and other
apparel products for all teams in most channels of
distributions. In 2006, Reebok transferred the NBA
rights to the adidas Brand.
2002:
In 2002, Reebok launched Rbk a
collection of street-inspired footwear and apparel
hook-ups designed for the young man and
woman who demand and expect the style of
their gear to reflect the attitude of their lives: cool
and edgy, authentic and inspirational. Inspired by
street fashion, Rbks marketing is culturally
relevant as well.
2003:

2003 was a landmark year for Rbk.

Reebok formed an unprecedented partnership with
rap musician Jay-Z, which included the design and
marketing of the "S. Carter Collection by Rbk," which
launched in April. With the partnership, Jay-Z became
the first non-athlete to have a signature athletic
footwear collection.
2004:
In 2004, Reebok became the worlds
leading producer of hockey apparel and equipment
with its acquisition of The Hockey Company. The
Hockey Companys brands, CCM, Koho and Jofa, are
among the most respected in the sport. Reebok has a
long-term licensing agreement with the National
Hockey League, under which the company serves as
the supplier of authentic on-ice game jerseys to all
30 NHL teams.

2005:

In early 2005, Reebok launched Rbk

Hockey, a new and innovative line of ultra-high
performance hockey equipment, sticks and skates
and signed hockey phenom Sidney Crosby, who has
lived up to his billing as the leagues next great
player. In two short years, Rbk Hockey has become
one of the most visible and in-demand hockey brands
on the market. In 2005, Reebok launched its largest
global integrated marketing and advertising
7

campaign in nearly a decade. "I Am What I Am" is a

multi-faceted campaign which links all of the brand's
marketing and advertising efforts under the "I Am
What I Am" umbrella.
2006:

In January 2006, adidas-Salomon AG

acquired Reebok, Forever altering the worldwide
sporting goods industry landscape. Fireman got his
start working for his family's fishing tackle business.
Hes sold fitness giant Reebok to Adidas for $3.8
billion .Shortly after the close of the acquisition,
Reebok Chairman and CEO Paul Fireman announced
he was leaving the company to pursue
other interests, and Paul Harrington was named
President and CEO of the Reebok brand.
2007:

Reebok launched Run Easy, one of the

most comprehensive running campaigns in the
brands history. The goal of the campaign was to
inspire consumers around the world to fulfil
their potential and celebrate their individuality. In
addition, Reebok's partnership with the National
Hockey League took centre stage with the
unveiling the Rbk Edge Uniform System, a
complete,
team-wide
redesign
and
reengineering of the NHL uniform, and the opening
of the NHL Powered by Rbk retail store in New
York City. Reebok also launched its "There are Two
People in everyone "marketing campaign for the
second half of 2007 in select regions. The
campaign, featuring international sport stars
8

such as Allen Iverson, Yao Ming, MS Dohni and

Nicole Vaidisova, declared that there is more to
an athlete than his or her sport.
2008:
Reeboks global marketing campaign,
Your Move launched in March of 2008 and
evolved Reeboks positioning as the brand that
celebrates individuality and supports those who
choose to do things their way. In the summer of
2008, Reebok and driving ace Lewis Hamilton
announced a multi-year partnership at a
spectacular 3-D event in Amsterdam, home of
Reeboks European Headquarters.
2009:

In February 2009, Reebok launched the

Jukari Fit to Fly workout, the first in a series of
initiatives to come out of a new, long-term
partnership with Cirque du Soleil. Jukari Fit to Fly
makes fitness fun again by introducing a new
way to move. Also in 2009, Reebok made a
pledge to tone the butts and legs of women
around the world with its innovative Easy Tone
footwear.

Products of Reebok:
The product is divided into four sections:
1 ) S h o e s ,
2 ) A p p a r e l s
3 ) S p o r t s e q u i p m e n t
4)Exercising / health products
1

:
Reeboks specialty is their
shoes. They vary from shoes for everyday use
to professional footwear. The outlet has
around 4000 different types of shoes. The outlet
also
sells
fl oaters and sandals which have gained a t
remendous amount of popularity among the
youth.
2 ) A p p a r e l s :
These include TShirts & shirts, track suits, shorts,
socks& c a p s w h i c h a q u i e t p o p u l a
r a m o n g t e e n a g e r s , Sports men and
professionals.
3 ) S p o r t s

E q u i p m e n t :
Sport equipment includes
like Cricket bats & balls, Tennis balls
and gymnastic equipment.
4)Exercising / Health Products:
10

health products
skipping ropes etc.

It also sells exercising /

like dumbles & weights,

Mission & vision:

Reebok vision: Fulfilling Potential

Reebok is
dedicated to providing each and every athlete from professional athletes to recreational
runners to kids on the playground - with the
opportunity, the products, and the inspiration to
achieve what they are capable of. We all have the
potential
to
do
great
things.
As
a brand, Reebok has the unique opportunity to he
lp consumers, athletes and artists, partners and
employees fulfil their true potential and reach
heights they may have thought un-reachable.
Reebok mission: Always Challenge and Lead
through Creativity
At Reebok, we
see the world a little differently and throughout
our history have made our mark when weve had
the courage to challenge convention. Reebok
creates products and marketing programs that
reflect the brands unlimited creative potential.

11

FEATURES OF REEBOK:
Globally Fourth after Adidas, Nike and Puma
Number 1 in India- 53% share of branded
sports footwear market ( estimated size
3500cr per annum)
Its lowest price point is less than 1000 (Rs.
999 for a pair of jogging shoes).
Have 1000 stores in 325 cities.
About 300 outlets cater to lower end of the
market.
It offers 80 SKUs under 2590
About 70% of the sales volume comes from
low end product. In terms of value it
constitutes 50% of the revenue.
Over 80% of the footwear is manufactured in
India.
Reebok India MD-Subinder Singh Prem
Yard stick to open a store: Any location which
has a population of 10000 to15000 can
sustain a Reebok store.
Even if a franchisee, who owns the place,
sells three to four pairs a day, there is a profit
of 30000 to 40000 per month.
12

Swot analysis:
Internal Environment Analysis (strengt
hs/weaknesses Analysis)
This is one thing to decide attractive opportunitie
s anda n o t h e r t o h a v e t h e c o m p e t e n c i
e s t o s u c c e e d i n t h e s e opportunities. E
ach business needs to evaluate its internal
strengths and weaknesses periodically. It can do
so by using a form like the one shown in the
marketing Memo
Checklist
forPerforming Strength/Weaknesses Analysis.
Management or a n o u t s i d e c o n s u l t a n t
r e v i e w s m a r k e t i n g , fi n a n c i a l ,
manufacturing and organizational competencies
and
rates
each
f a c t o r a s a m a j o r s t re n g t h , m i n o r s t re n g
t h , n e u t r a l f a c t o r , minor weakness, or major
weakness.C l e a r l y , t h e b u s i n e s s d o e s n o t
h a v e t o c o r re c t a l l i t s weakness,
nor
should it gloat about all its strengths. The big
question is whether the business should
limit itself to those opportunities where it
13

might have to acquire or develop certain

strengths. For example, managers at Texas
Instruments
split between those who want TI t
o s t i c k t o i n d u s t r i a l electronics (where
it has clear strength) and those who want
the company to continue introducing co
n s u m e r e l e c t r o n i c products (where it lacks
some required
marketing
strength).S o m e t i m e s a b u s i n e s s d o e s
p o o r l y n o t b e c a u s e i t s departments
lack the required strengths but because they
do n o t w o r k t o g e t h e r a s a t e a m .
STRENGTH:
Reeboks name has excellent branding
and a high quality image.
People buy Reebok because its quality
and reliability.
It has an excellent service network. This
enables the outlet to stay ahead
of competition, both in terms of quality
and pricing by ensuring timely supply
of each and every item needed in the
showroom.
Teenagers and the young generation
are crazy about this product.
Size & strong brand awareness and
perception.
Wide
range
of
celebrity
associated
sponsorship
14

 It's strong position in the women's sector

Research and development
Marketing

WEAKNESS:
It faces a lot of competition like Nike,
Power, and Phoenix etc. In some places it
has not been able to compete with the
Indian sports shoe manufactures because
of its high prices.
Its high prices have limited their range of
customers. Reebok caters to only
thehigher middle class and top class of
the society.
Too much reliance on retail stores to sell
products.
poor employment practices at overseas
manufacturing sites
High % of upper management turnover
Dependency on Footwear sales
OPPORTUNITY:
The fickle and design. This is because of
the conscious nature of the target market
15

of young teenagers and adults who like

to buy the latest fashions.
Moving from the specialist sports
shoe market to the young and adult
market.
New and innovative sports shoe designs.
Emergence of more Sporting events
Womens Marketplace
College/Pro Sports
Reebok is also leveraging the digital
space to control distribution and build
direct consumer
Broaden market expected from convergence
of broadcasting, telecom and entertainment
industry (reality shows)

THREAT:
The biggest threat is the popularity of
other manufactures.
Reebok has to increase its popularity on a
regular basis.
Strong competition.
Rising price of row material
Chinese products
Global/Domestic Economies

16

Competitors analysis:

Reebok faced primary competition from industry

leader NIKE, after Nike puma is also a strong
competitor of Reebok in shoe industry.
Adidas acquisition of Reebok developed
increased opportunities to achieve competitive
advantage through branding.
The Reebok brand also gain sustainable
competitive advantage through increased brand
recognition. Globally, Reebok will benefit greatly
from Adidas distribution around the world.

17

 Combined R&D helped speed development of

cutting edge technologies, an important feature
of the increasingly fast paced industry.
Expedited research developed higher consumer
demand for innovation across all brands, putting
pressure on Nikes R&D capabilities.

ACHIEVEMENTS:
As a retail outlet :
S i n c e t h e h i s t o r y o f t h i s re t a i l o u t l e t
i s v e r y s m a l l , i t s major achievement is
attracting almost all type of customers is
such a short time. Another achievement
of
this
outlet
is
that
customers come to this outlet not
o n l y t o b u y s h o e s b u t apparels and o
ther sports accessories. Customers of S
outhExtension now know that they will be
satisfied if they buy from this outlet as they
can buy original Reebok products. Moreover,
the customer can try out whatever he buys.
18

Thus the outlet has achieved a good name in

the market.
As a company:
Nike was profitable and continuing to develop
its
role
as aspecialist US sports shoe manufact
urer with no production facilities in its
home
country.
Then
along
came
competition in the form of a new sports
shoe manufacturer, Reebok. From astartup Company in 1981, Reebok went into
battle againstN i ke u n d e r i t s f o u n d e r a
n d c h i e f e xe c u t i v e , Pa u l Fi re m a n . Ree
bok launched a strong and well-designed
range
of
sports
s h o e s w i t h g re a t s u c c e s s . B y t h e m i d
1 9 8 0 s , Re e b o k h a d
equalled
Nikes
annual sales in a fierce competitive
battle. In1987, Reebok was clear market
leader with sales of US$991 million and
a market share of 30 percent, compared
with Nike sales of US$597 million and a
share of 18 percent.
Part of the problem and op
portunity for both
manufacturers was the fickle and designconscious mature of the target market:
young, hip teenagers and adults buy
the latest fashions. Both Nike and Reebok
realized
that,
in
order
to
19

build volume, it was necessary to move

from the
specialistsports shoe market to wider a
doption by this much target,
fashionaware teenage and young adult market.
This was the battle ground that was
initially captured by Reebok with good
products and a campaign of public
relations that was highly disrespectful of
Nike. Mr. Fireman criticized Phil Knight as
being just a shoe guy who saw himself as
being a big-time presence in sports. In
response, Mr. Knight responded by saying
that he hated his competitor and that
the
most
innovative
piece
of R&D
equipment they have is the copy machine.
One author of a book on Nike commented:
Paul Fireman was installed as a devil
figure inside Nike, and he remains a dark
presence to this day.
To hit back against Reebok, Nike then began t
o investconsiderable sums on developing
new and innovative sports shoe designs.
The most successful of these was begun
in
thel a t e 1 9 8 0 s , t h e N i ke A i r s h o e . I t
w a s a n i n t u i t i v e l y s i m p l e technology to
understand, said John Horan, publisher of
sports Goods Intelligence, a US industry
newsletter.
its
obvious
toc o n s u m e r s t h a t i f y o u p u t a n a i r b a
g u n d e r t h e f o o t , i t w i l l cushion it. But it
was not until 1990 that the Nike Air shoe
20

wasl a u n c h e d a n d b e g a n t o d e l i v e r s u
c c e s s f o r N i ke . T h u s t h e 1 9 8 0 s w e re
b o t h t h e d e c a d e o f d i ff i c u l t y a n d t h e
t i m e f o r renewal. Nike had learned about
the heat of competition and the need for
innovation and continual R&D in its shoe
designs.

Conclusion:

From data analysis and interpretation it is

concluded that, most of the customers prefer
branded products.
21

 From the study it is also concluded that, most

of the people prefer Reeboks shoes and even
Indian cricket players uses Reeboks bats.
Last but not the least, it is concluded that the
market position of Reebok is much better
than other companies

Bibliography:

WEBSITE:

22

www.finance.yahoo.com
www.rbkindia.com
www.reebok.com
www.bigcharts.com
www.businessweek.com
www.wikkipedia.org
BOOKS:
Modern Marketing (Philip Kotler)
Marketing Management (S.A.Sherlekar)

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