Topics: Reebok, Athletic shoe, Adidas Pages: 5 (1278 words) Published: October 24, 2014
Reebok International Limited was created in 1895 in England by Joseph William Foster (). During the beginning staages of Reebok, J.W. Foster devveloped the novelty ¨spiked running shoe¨ while he was producing the item. He then changed the company´s name from J.W. Foster and Sons to Reebok. Although Reebok has been in the shadows of major competitors Nike and Adidas, they still manage to be a successfful sports wear market. Reebok underrstands customers neeeds and continue to enhance as an international brand. While sportswear is becoming increasingly popular the bulk of sales ccome from the Rss 2000 to Rs 4000 segment compared to twwo years ago when mmost of the sales would come froom the Rs 1000s to Rs 2000 segment. A major aspect to Reebok´s success is it´s ubiquitous retail chain. Reebok is retailing from almost 750 exclusive stores and 2000 multi brand outlets. Reebok´s biggest invvestment has been in the field of marketing infrastructure, creating an international and uniform retail ambience in all their stores. Reebok is becoming a stronger brand daily. Investment in building a strong brand is a means of securing Reebok sales and business forthe future. As products become more popular and consumer choices increase,branding will provide the differentiation to break through the clutter. Fitness will be the key driver in lifestyles, and Reebok is undoubtedly the fitness enabler in the country. To reinforce Reebok´s position as a premium sports and lifestyle brand, Reebok intend to significantly improve and increase their product offering at high and mid price points to drive growth in average selling prices. Although this approach may slow Reebok´s top line development in the short term, they believe it enables them to build a platforrm for future sales and profitability growth. As a result of their new pricing strategy, there will be certain level of competition betwen the Adidas and Reebok brands, particuraly at mid level price points. To prevent cannibalizaion, Reebok will clearly differentiate both brands by communicating distinct bbrand messages targeted at differnt consumer types. ​

Marketing Mix
Product and branding strategies
Since Nike is the leader in sports equipment Research and Development the company’s goal was to recognize the gaps that existed in the sports shoe market. This is where the Nike Free design came in to play. It was a shoe that is designed to feel like you are barefoot while strengthening your feet and legs. The more power and speed one has the increase of risk decreases. The design did not go directly to the consumers it spent a minimum of 12 months in a trial phase. Innovation like this is what sets the company apart from its competitors. “Nike was conscious that Nike Free needed to be positioned as an additional training shoe in your kit bag, not necessarily as a replacement to your traditional running shoes.” (Financial Review, 2005-2012) Nike uses a labor intensive method to drive their products to the consumers. Mobil vans were used in the US, Europe, and Australia which attracted a large number of runners. These mobile units were staffed with experts in running and footwear. During customer visits they would receive gait analysis along with a chance to test the Nike Free product. This was an innovative way to attract the consumers on their terms and in their own comfort location. (Financial Review, 2005-2012) Staffing strategy

​The employees at the Nike brand must know the product and benefits, inside and out. Nike has established Nike Sports Knowledge Underground which is an animated multimedia learning environment. Each station introduces a new shoe product which will give learning tools on it, at the end of each module a quiz will be given. Since many sales employees are of the younger generation, this education tool is set up like a game to inform. (Financial Review, 2005-2012) Pricing Strategies

Nike ultimately uses a high-low pricing strategy....

References: Financial Review. (2005-2012). Nike: Product development from concept to customer. CaseStudies, With BUSINESS NEWS. Australian Business Case Studies Pty Ltd. Retrieved
May 23, 2014 from ​​​
Nike, Inc. (2014). History & Hertiage. Retrieved May 22, 2014 from
Nike, Inc. (2014). How We Work. Retrieved May 25, 2014 from​
Word Press. (2007). Marketing Strategy of Nike: Sales & Marketing Slides. Retrieved May 24,
2014 from
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