eebok stores in different parts of the country, but the goal is for 1000 by the end of 2009. Not only is Reebok creating its corporate image through retail stores, it sponsors over forty elite players in addition to providing athletic programs (to the left) to the buyers. But that is not all. In recent news, Reebok has announced that it wants to sponsor players from the grass root level and make the merchandise available to individuals living in suburban or rural neighborhoods. By doing so, Reebok is expanding its target cohort. This will modify the entertainment image of sports and create a new way of life. Based on the evidence, I believe that Reebok’s strategic marketing plan will create a unique brand for the company that will result in major profits not only in the short run but also the long run.
Reebok in the beginning started off as a small company in India, but has slowly evolved into one of the dominant market entities in India. With a corporate image of sports merchandise, it positioned itself toward the target audience of athletic males, but as time went on, the media expanded this demographic. According to Rediff.com columnist Meenakshi Radhakrishnan-Swami, Reebok’s thought was to "Ask not what percentage of an existing market your brand can achieve. Ask how large a market your brand can create by putting resources behind creating a category." One of the most important skills for valuable marketing is powerful branding. By making a unique name for the company, people will remember it. Once Reebok noticed that women and children were interested in sports, it began to change its positioning by opening a new women’s and children’s collection line to appeal to that audience. With this expansion, Reebok is showing all its competitors that its investments are based on making athletic apparel the new fashion line for everyone.
Given a larger consumer base, Reebok took it another step further to enh
ance the corporate image of the company. Managing director Subhinder Singh Prem (to the right) explained that the focus for Reebok “is to develop a new genre of sports and fitness enthusiasts making immense sense for a brand that is synonymous to sports and fitness gear.” This is an important point because in order to make a brand stand out it has to be incorporated into a person’s daily routine. Reebok India has done so by training individuals to become fitness instructors. In doing so, individuals are educated about exercise and understand its impact with all the associated health benefits. As a result, Reebok has created a new fitness trend in India.
With the consistent expansion and improvement for Reebok, it announced in recent news that it was looking to sponsor cricket athletes from the grass root level. Prem said that “this program will not be limited to Ranji trophy players but also target cricketing talents in tier III cities who may not grow for lack of resources.” By doing so, Reebok India is exposing itself to an even wider population. The company is awarding those players who have unique talent and deserve attention but may not be able to afford to participate in distinguished sports programs. Therefore, Reebok India is establishing its brand as a inclusive and well rounded company that cares about all athletes. In doing so, the world of sports becomes increasingly exciting and more individuals become interested and find ways to become a part of it whether it is through attending games or buying memorabilia. This leads to higher sales and more exposure for Reebok and the companies it supports.
By having an extensive marketing strategy, I have concluded that Reebok India is an excellent example of branding in the business of sports. The company specifically focuses on consumers by spending $100 million dollars annually on research and development. Even though that money could be spent on sponsoring another athlete or investing in another store, this is a smart move because Reebok knows exactly what consumers think of the products and what they will buy. As well, by including athletes from the grass root level, it shows no bias, but rather is presenting itself as a company that values the talent and effort that is put into sports. With companies creating a variety of different products, Reebok reminds us that the key to differentiation is branding.
1 comment:
CH, I really enjoyed reading your post. I liked how you examined your interest of sports from a business prospective. It was also refreshing to hear about the success of an Indian company. I feel we are so used to hearing about Nike. It was nice to hear how Reebok India is reaching out to even players from the grass root level.
I think that you support your argument quite well, especially when you say that “One of the most important skills for valuable marketing is powerful branding. By making a unique name for the company, people will remember it.” I definitely would agree with you. I agree that by targeting grass root level players Reebok will be more likely to be remembered for doing something good.
One thing I would have liked to see in your post would have been quoted evidence perhaps from the managing director himself. Furthermore, it would have been interesting to have included thoughts from grass root players. What do they have to say? I’m sure they are thrilled.
The pictures you used in your post really serve the purpose of drawing attention. However, the link to the first picture has been disrupted. I think it would have been great if you somehow explained the program that is depicted in the picture too. Other than that, your post was quite informative and well-written.
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