in North America

BUSS 205-07: Marketing Management

GROUP 8

2016120499 | Bondan Agung Rajasya

2016120436 | Duzhuoyan
2018120447 | 양의
2018120484 | 원려문
2020951569 | Anna Chan Kwoc Keung
2020951152 | Clémentine Schaedlich
2018120339 | 탕일위
2020951305 | Toghrul Pashayev
Agenda
1. Executive summary :
- Reebok’s background
- Problem recognition
2. Market analysis:
- Macroenvironment analysis
- Competition and company analysis
- Consumer analysis
3. Marketing goals
4. STP strategy
5. Marketing Mix
6. References
Executive summary ● Founded in England in 1958 by 2 brothers Joe & Jeff
Foster to carry a family athletic footwear tradition.
Reebok’s Background ● Name Reebok: inspired by the African Antelope grey
Rhebok.
● The brother’s firm Reebok continued producing
running spikes until 60’s and 70’s.
● 1979, Reebok exhibited at the Chicago International
Sneaker Trade Show. That year, Paul Fireman acquired
the exclusive rights to Reebok in North America.
● 1988, Reebok controls 27% of the athletic footwear
market

Brand value 1981: $1.5million

Sales 1987: $1,4billion
Sales 1988: $1.8billion
Executive summary
● 1990’s : Success of Reebok in the North
American market. Only competitors : Nike &
Problem recognition : Adidas. Reebok at that time positioned itself on
the fashionable sports footwear segment.
Reebok’s main challenges ● 2000-2010’s : diversifying portfolio : soccer
market + signing new stars.

2005 : Company acquired by Adidas. Establish

as a genuine technology-driven performance
brand instead of focusing on casual athleisure
footwear.

● 2010 : Partnerships with Crossfit and celebrity

trainers to re establish as a fitness brand.
● Nowadays challenge: simultaneously become
one of the best sportswear brand, but at the
same time remaining true to the brand’s DNA by
doing collaborations with fashion labels as
Vetements and Pyer Moss
Market Analysis
Macroenvironment analysis

Demographic Economic Social Technological Political Legal

- Reebok targets - Reebok - Natural factor : - Complete range - To maximize - Pay taxation in
Baby boomers, successfully In 2019, Reebok of Reebok’s Reebok products’ the different
millenials and targets specific launched its first products on the penetration, countries where
generation X. groups with its plant-based shoe brand’s website; analysis of the Reebok operates
- Comfortable “premium and to “inspire positive - Website’s also a different - Set the
sportswear which mid-range change” way to share their countries. appropriate
fits Reebok’s products”. - Social factor : new initiatives Different strategy wages
target market - The brand fulfills increase of - Ecommerce and especially in - Follow local
consumer needs popularity of the online shopping countries like policies to assure
listening to the fitness industry - Advanced China & India quick supply of
demand. among technology in products and
consumers due to materials and considerable
the rise in health product’s profits in sales.
awareness. features. - Some products
may not fit the
local policies.
 Suppliers power: Competition scope:

Market Analysis - Large pool of leather and - product level: competition with other brands’
rubber suppliers running shoes. E.g: New Balance
- category level: fitness & sportswear industry.
Competition analysis
- Moving to another supplier
wouldn’t have big impact E.g: Adidas or Puma
- Suppliers ‘ bargaining power - benefits level: comfortable shoes and good
is considered as relatively quality. Competes with Nike or Adidas.
Five forces analysis : constrained

Potential entrants : Industry competitors (segment rivalry):

- High entry barriers - Nike (main competitor) launches women Threat of substitutes:
- Most successful shoe sportswear line - Few alternatives to no
brands have reached - Entry barrier in the athletic shoe industry is alternatives
economies of scale high : increases rivalry between the existing - Indeed Reebok
- Reebok tries to competitors provides benefits for
differentiate introducing - Puma competes with design, prices, product physical effort
new “Pump” strategy
characteristics - New Balance: strong brand awareness

Buyers power:
- Consumers or retail chains like Foot Locker or ABC
Mart
- Reebok is free to choose the price point (due to very
few substitutes in the market)
- Low-price sensitivity + significant brand recognition
and loyalty
⇒ Bargaining power of buyers is moderate
Market Analysis
Framework

● Core Product:
- Not only sports brand but a unique lifestyle.
“You define the shoe”
● Mission statement :
- Challenge & lead through creativity
● Vision statement :
- Providing each and every athlete opportunity, ● End Product:
products and inspiration to achieve what they are - 2016 : Collaboration with
capable of Kendrick Lamar
● Values : - 2017 : Gigi Hadid starts
- Instigating innovation & defining its own-code. wearing Reebok
- Reliable, Well Made, Useful - Recently, Cardi B joined
the Reebok squad
Market Analysis
Company analysis : SWOT

Strengths Weaknesses
● Positions on very clear segment: sportspersons or ● Excessive commercialisation: downgrade of Reebok
exercise enthusiasts in consumer’s perception from premium brand to local
● Feature-rich products: strong selling point or regional player
● Multi-channel distribution strategy ● Poor awareness: the company has been unsuccessful
● High customer engagement: in educating customers and is stil associated to
● Celebrity endorsements sneakers industry
● “Cool” brand image

Opportunities Threats
● Looking at new markets: moving into categories such ● Competition :
as ethnic design, women sportswear segment, kids - product level: competition with other brands’ running shoes.
segment. E.g: New Balance
● Niche areas: combat shoes, dancing shoes, aerobic - category level: fitness & sportswear industry. E.g: Adidas or
Puma
shoes or training shoes. Customers could be more
- benefits level: comfortable shoes and good quality.
educated by Reebok being present is those areas. Competes with Nike or Adidas.
● Counterfeits : some of the products suffer copying
Market Analysis
Consumer Analysis

Target Market : Behavioral Analysis :

Customer Analysis:
- Fitness industry - Consumer buy Reebok’s
- Reebok fits with the trends
- Reebok then has product because they are aware
- Average spend for Baby boomers and
targeted the of benefits : performance,
Generation X : $60-$62 = price range of
women Fitness quality, comfort and support
lifestyle shoes: the 2 groups may not
clothing industry - Customers attracted by the
focus on performance and design but
- Reebok’s point prices as the products are not to
more on comfort and quality
of difference expensive
- Millenials spend $55
consists in - Extended decision-making
- 55% of customers are women ⇒
targeting different process
Reebok’s pioneer in women sportswear
segments - 90% of online purchase
Marketing Goals

- Enhancing customer loyalty - Finding new customers

For achieving this goal the requirements In this case, Reebok is offering 15%
on design i.e. fabric comfort were taken discount to its new users in online shopping.
into consideration. After meeting the Also, to improve its image the company
requirements, membership programs made an agreement with fitness brands as
Crossfit. In local scale, Reebok can chose to
were established including Reebok
go with country stars as BTS in case of
Unlocked and ReebokONE. While one is Korea. By this, they can increase their
focused on customer loyalty, the second audience and get love from the fans.
one aims the lifestyle.
STP Strategy
 These types of customers are

Segmentation - 16 y.o people with financial

dependance on their parents.
The price level for these products
are average, the design is very
vital.

The age range when the

16-24 y.o
customers are paying the most
attention to playing sports. The
products designated for them
should be very durable and the
price level not very high.

Most hard to analyze age

24+ y.o
group. Demand from products
is usually about the both
quality and comfort. The price
factor is not important becuase
of working age of customers.
 Among many segment of market, the company needs

Targeting
to choose one or couple of them that it wants to
penetrate.
The competition in the market, the availability of
resources of the company are determining factors for
Reebok to enter the certain market. Next, the market
should have good potential for development by itself.
However, along with this it should also correspond to the
aims of the company and should not distract it from its
goals.
For Reebok, the main population are people aged 16-24
and 26-35 that altogether make literally half of the
sports’ population.
Young adults usually spend more money on sports
products and have more requirements on them. There
are less consumers of the older age that really spend a
lot on sport products and the ones that do want to get
more high-quality and durable ones. Reebok has
products also for them.
Positioning
More buyers - more supply Small number and long
time of transactions

Different consumers - more Better elasticity of

types of needs demand means more
purchases
Marketing mix
Product & Promotion

1. Product 2. Promotion
As a subsidiary of Adidas, Reebok a. Spokespeople
has an access to its technology. This b. Sponsoring professional leagues
allows the company to produce c. Fitness places discounts for Reebok
better quality products combining customers
with its own technology.
Price & Place

1. Price 2. Place
a. Price skimming strategy a. Creation of qualitative
b. Penetrating strategy environment
c. Price destroying policy b. Professional look
d. Clearance strategy and price c. Online shopping
discrimination
References - 1

Adamkasi. (2016, September 1). PESTEL Analysis of Reebok. Retrieved May 30, 2020, from [Link]

Adamkasi. (2017, June 15). Porter's Five Forces Analysis of Reebok. Retrieved from [Link]

Adidas. (2020). Coronavirus pandemic weighs on adidas’ first quarter results [Ebook] (p. 3). Retrieved 29 May 2020, from
[Link]

Asics. (n.d.). Women's GEL-Nimbus 22: Piedmont Grey/Hot Pink: Running Shoes. Retrieved from [Link]

Australian Industry and Skills Committee. (2020, April 2). Fitness. Retrieved May 30, 2020, from [Link]

Barrett, A. (2019, October 4). Veja New Running Shoe Made with Bioplastics. Retrieved from [Link]

Bhasin, H. (2018, June 14). Top 10 Reebok Competitors - Reebok competitor analysis. Retrieved from [Link]

Bhasin, H. (2018, December 8). Marketing mix of Reebok - Reebok marketing mix and 4 Ps of Reebok. Retrieved from [Link]

Buco, L. (2019, December 3). Reebok Takes You on a Run With its First Plant-Based Shoe. Retrieved from [Link]

Bush, T., & Bush, T. B. T. (2016, July 13). Legal Factors Affecting Business. Retrieved from [Link]

Fitness for Weightloss. (n.d.). Gym statistics: members, equipment, and cancellations. Retrieved from
[Link]

Home. (2016). Retrieved June 15, 2020, from [Link]

References - 2
Kotler, P., & Armstrong, G. (2018). Principles of marketing. Upper Saddle River: Pearson.

McDonald, S., & McDonald, S. (2020). K-Pop Boy Band BTS Teams Up With Puma on a Sneaker That Its Army of Fans Will Snap Up, Stat. Footwear News. Retrieved 29 May 2020, from
[Link]

Morris, M., & Morris, M. (2020). How to Pick the Best Workout Clothes. Openfit. Retrieved 28 May 2020, from [Link]
[Link]

New Adidas CEO plans to reshape Reebok | Retail News USA. Apparel Resources India. (2020). Retrieved 29 May 2020, from
[Link]

New Balance. (n.d.). Made in US 990v5. Retrieved from [Link]

North America - adidas Annual Report 2019. adidas Annual Report 2019. (2020). Retrieved 29 May 2020, from
[Link]

Pro, A. (2019). Why we love Reebok Classic – Timeless shoe that will always spark. Retrieved from [Link]
Reebok. (n.d.). Reebok ZigWild Trail 6 Women's Shoes - Black: Reebok US. Retrieved from [Link]

Reebok Brand Strategy - adidas Annual Report 2019. adidas Annual Report 2019. (2020). Retrieved 28 May 2020, from
[Link]

Richardson, M. (2018, October 18). A Quick History of Reebok | Grailed. Retrieved June 15, 2020, from [Link]

Sacks, T. (2012, May 10). Reebok. Retrieved from [Link]

Saran, G. (2012, April 20). Reebok marketing analysis. Retrieved from [Link]

The Brand History of Reebok. (2019, March 25). Retrieved June 15, 2020, from [Link]

The World Bank. (n.d.). Population, total - High income, Middle income, Low income. Retrieved from [Link]
Thank you !
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