A STUDY ON THE SUPPLY CHAIN MANAGEMENT OF

REEBOK

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT OF BACHELOR OF BUSINESS
ADMINISTRATION (BBA) JAGANNATH UNIVERSITY
JAIPUR

FACULTY GUIDE: SUBMITTED BY:

Ms. Ambika bhatia chopra Pragati Jain - 87
Himanshu Mittal - 71
Akshay Khattar - 58
Mohit Lakhotia - 82

SESSION : 2015 2018

JAGANNATH UNIVERSITY
JAIPUR
 ACKNOWLEDGEMENT

We would like to thanks Ms. Ambika Bhatia Chopra for her continuous guidance and
support throughout the project report. We are deeply indebted to all people who have
guided, inspired and helped us in the successful completion of this project. We owe a
debt of gratitude to all of them, who were so generous with their time and expertise.

We would also like to thanks Mr. Sandeep Panchal and Ms. Astha Tandon who
arranged Transport Facility and plan our visit in the Pacific Mall Shubhash Nagar.

Last but not the least, We thank everybody, who helped directly or indirectly in
completing the project that will go a long way in our career, the project is really
knowledgeable & memorable one.
 EXECUTIVE SUMMARY

We did our project on Supply Chain of Reebok. In India Reebok operates in cash and
carry format as it is not an Indian company. Reeboks stores are specialty store. Reebok
deals with following products sport shoes, sport apparels. (Sun glasses, Watches, Carry
Bags, Sport kits, Clothes) Reebok is in vertical integration it is having its on
manufacturing units and retail outlets as well.

The objective of the research was to understand supply chain of Reebok and operation of
Reebok retail stores in India. The secondary objective of the research was to understand
the factors influencing consumer purchase in Reebok shoes and Reebokss performance
on those parameters. It was found that the promotion strategy and location of the store is
the most important factors that drive purchase.
In this project We studied about marketing strategies adopted by Reebok in Indian
market. Reebok India ltd uses an integrated promotion tool, Reebok use advertisement,
personal selling, sales promotion and internet marketing to promote its products. In India
Reebok is having a strong supply chain and customers can find Reebok products easily in
market.

This project helped me to get an experience of research and in understanding the various
theories of books which We understood from the real business world. It gave us a chance
of implementing our bookish knowledge.
 TABLE OF CONTENTS

CHAPTER PAGE NO.

INTRODUCTION

Company Profile
SWOT Analysis
Competitors Information
 CHAPTER 1: 1NTRODUCTION

Reebok was founded in England in 1895 as JW Foster and Sons as a manufacturer of

track shoes. It was renamed REEBOK in 1960.It is an American inspired Global brand
that makes sports products so as to meet the aspirations of the customer who has an
emotional value attached to it, the brand is committed to innovate and design products
and marketing programs so as to be at par with the competitors.

o Reebok is an American-inspired, global brand that creates and markets sports and
lifestyle products.
o The brand is committed to designing products and marketing programs that reflect
creativity and the desire to constantly challenge the status quo.
o Reebok was founded by Joseph. William Foster in the 1895.
o Reebok originated from Bolton, England.
o J.W. Foster made the first running shoes with spikes. It was a black shoe in chrome
leather.
o J.W. Foster died at the age of 52 in the year 1933.
 o J.W. Foster and Sons got its name Reebok in 1958.
o Reebok means African Gazelle.
o It became an American company in 70s.
o Reebok launches the first womens athletic shoe, the Freestyle, in 1982, meant for
new fitness exercise called aerobics dance.
o In 1986 Reebok acquires Rockport and the apparel division for Reebok has also
started in this year.
o 1986 was the beginning of step training; Reebok launched Step Reebok nationally
in 1989 after conducting scientific and biomechanical research.
o Reebok came into India in the year 1995.
o In the year1996 Basket ball player Allen Iverson endorsed with Reebok.

In December 2001-2, Reebok and the National Football League signed a 10 year contract
allowing Reebok to manufacture market and sell NFL licenced merchandise.

Year 2005 Paul Fireman announced his move to sell Reebok to adidas.

COMPANY PROFILE
Reebok International Limited, a subsidiary of the German company Adidas since
2005, is a producer of athletic shoes, apparel and accessories. The name comes from
the Afrikaans spelling of rhebok, a type of African antelope or gazelle. In 1890 in
Holcombe Brook, a small village 6 miles north east of Bolton, United Kingdom, Joseph
William Foster was making a living producing regular running shoes when he came up
with the idea to create a novelty spiked running shoe. After his ideas progressed hejoined
with his sons, and founded a shoe company named J.W. Foster and Sons in 1895.

In 1958, two of the founder's grandsons Joe and Jeff Foster renamed the
company Reebok in the United Kingdom, having found the name in a dictionary won in
a race by Joe Foster as a boy; the dictionary was South African edition hence the
spelling.
REEBOK'S VISION

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 help consumers, athletes and
artists, partners and employees fulfill their true potential and reach heights they may have
thought un-reachable.

REEBOK'S MISSION

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.

REEBOK'S BRAND TERRITORY

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.'

Brands

Reebok International
Rock Port
RBK CCM Hockey (Worlds largest)
Greg Norman Apparel
Ralph Lauren Brand
The Hockey Company
Avia
Onfield Apparel
 Athletic footwear

PRODUCTS
SWOT ANALYSIS

Strength:-

Size & strong brand awareness and perception.

Wide range of celebrity associated sponsorship

It's strong position in the women's sector

Research and Development

Marketing

Weaknesses:-

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

Opportunities:-

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)

Threats:-

Strong competition.

Rising price of row material

Chinese products

Global/Domestic Economies

TOP 5 COMPETITORS

In the below Figure, we show the Top 5 Competitors of Reebok

1. PUMA
PUMA SE, branded as PUMA, is a German multinational company that designs and
manufactures athletic and casual footwear, apparel and accessories, headquartered
in Herzogenaurach, Bavaria. PUMA is the third largest sportswear manufacturer in
the world. The company was founded in 1948 by Rudolf Dassler. In 1924, Rudolf and
his brother Adolf Dassler had jointly formed the company Gebrder Dassler
Schuhfabrik (Dassler Brothers Shoe Factory). The relationship between the two
brothers deteriorated until the two agreed to split in 1948, forming two separate
entities, Adidas and PUMA. Both companies are currently based in Herzogenaurach,
Germany.

PUMA has been a public company since 1986, listed at the Frankfurt Stock
Exchange. Since 2007 PUMA has been part of French group Kering (formerly known
as Pinault-Printemps-Redoute or PPR). Since 1 July 2013, the company has been led
by former football professional Bjrn Gulden (CEO).
2. NIKE

Nike, Inc. is an American multinational corporation that is engaged in the design,

development, manufacturing, and worldwide marketing and sales of footwear,
apparel, equipment, accessories, and services. The company is headquartered
near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest
supplier of athletic shoes and apparel and a major manufacturer of sports equipment,
with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31,
2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the
brand alone was valued at $19 billion, making it the most valuable brand among
sports businesses. As of 2017, the Nike brand is valued at $29.6 billion.

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill
Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The
company takes its name from Nike, the Greek goddess of victory. Nike markets its
products under its own brand, as well as Nike Golf, Nike Pro, Nike+, AirJordan, Nike
Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and
subsidiaries including Brand Jordan, Hurley International and Converse. Nike also
owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and
previously owned Cole Haan and Umbro. In addition to manufacturing sportswear
and equipment, the company operates retail stores under the Niketown name. Nike
sponsors many high-profile athletes and sports teams around the world, with the
highly recognized trademarks of "Just Do It" and the Swoosh logo.
3. NEW BALANCE
New Balance Athletics, Inc. (NB), best known as simply New Balance, is an
American multinational corporation based in the Brighton neighborhood of Boston
Massachusetts. The company was founded in 1906 as the "New Balance Arch
Support Company" and is one of the world's major sports footwear manufacturers.

New Balance maintains a manufacturing presence in the United States, as well as in

the United Kingdom for the European market, where they produce some of their most
popular models such as the 990 modelin contrast to its competitors, who often
manufacture exclusively outside the USA and Europe. As a result, New Balance
shoes tend to be more expensive than those of many other manufacturers. To offset
this pricing difference, New Balance claims to differentiate their products with
technical features, such as blended gel inserts, heel counters and a greater selection of
sizes, particularly for very narrow and/or very wide widths. The company has made
total profits of approximately $40 billion since 1991.
4. UNDER ARMOUR

Under Armour was founded in 1996 by Kevin Plank, a then 23-year-old former
special teams captain of the University of Maryland football team. Plank initially
began the business from his grandmother's basement in Washington, D.C. He spent
his time traveling up and down the East Coast with nothing but apparel in the trunk of
his car. His first team sale came at the end of 1996 with a $17,000 sale. From his
grandmother's basement, Plank moved to Baltimore. After a few moves in the city he
landed at his current headquarters in Tide Point.

As a fullback at the University of Maryland, Plank got tired of having to change out
of the sweat-soaked T-shirts worn under his jersey; however, he noticed that
his compression shorts worn during practice stayed dry. This inspired him to make a
T-shirt using moisture-wicking synthetic fabric. After graduating from the University
of Maryland, Plank developed his first prototype of the shirt, which he gave to his
Maryland teammates and friends who had gone on to play in the NFL. Plank soon
perfected the design creating a new T-shirt built from microfibers that wicked
moisture and kept athletes cool, dry, and light. Major competing brands
including Nike, Adidas and Reebok would soon follow in Plank's footsteps with their
own moisture-wicking apparel. Plank opted to use the British spelling "armour" in the
company name because the toll-free vanity number was still available for that
version.
 5. FILA
Fila, Inc. is a South Korean sporting goods company.
Fila was founded in 1911 in Italy. Since a takeover in 2007 by Fila Korea, Fila is now
owned and operated from South Korea. Headed by chairman and CEO Yoon-Soo Yoon,
Fila has offices in 11 countries worldwide.
Fila was created in Biella, Italy, by the Fila brothers in 1911.[2] It originally started by
making clothing for the people of the Italian Alps, now manufacturing socortswear for
men, women, kids and athletes.

The company's primary product was originally underwear, before moving into sportswear
in the 1970s, initially with the endorsement of tennis player Bjrn Borg. The brand got
more popular after moving into sportswear.

The original Italian ownership shop Holding di Partecipazioni sold the company to
US hedge fund Cerberus Capital Management in 2003, after the company over-
committed itself to expensive athletic endorsements, at a time when margins were under
pressure. Cerberus owned Fila through holding company Sports Brands International,
which owned and operated all Fila businesses around the world with the exception of Fila
Korea, which was a separate company operating the brand under licence.
 CHAPTER 2: SUPPLY CHAIN MANAGEMENT

ABOUT SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the oversight of materials, information, and finances
as they move in a process from supplier to manufacturer to wholesaler to retailer to
consumer. Supply chain management involves coordinating and integrating these flows
both within and among companies. It is said that the ultimate goal of any effective supply
chain management system is to reduce inventory (with the assumption that products are
available when needed). As a solution for successful supply chain management,
sophisticated software systems with Web interfaces are competing with Web-
based application service providers (ASP) who promise to provide part or all of the SCM
service for companies who rent their service.

REEBOK SUPPLY CHAIN

The majority of Reebok products are manufactured in approximately 724 independently-

owned and operated factories around the world. These factories employ more than half a
million workers. Reebok adopted the supply chain transparency in 2002.
Reebok stores are speciality stores. It is in vertical integration and has manufacturing
units and retail outlets as well.

SUPPLIER RELATIONSHIPS

There are three main types of commercial relationships:

Direct relationships with contract factories They contract directly with some factories.
These direct relationships account for 95% of footwear production by volume/spend. The
Reebok country office in each location oversees this manufacturing.
Sourcing through agents Some orders are placed through agents, who select the
factories subject to their approval. In footwear manufacturing most orders are placed
directly, but they also work with three agents.

Subcontract factories Occasionally factories subcontract parts of an order to another

factory.

Factories in INDIA

Sant Rubber Corporation Jalandhar City India - Subcontract

Sarup Tanneries Ltd. Jalandhar City India - Primary
Reebok has classified its retail stores in following three categories:

A store deals with new products and normally these stores do not provide any discount
on products as the products are new in market. In India Reebok is having 30 % of A type
stores.

B store deals with only old products which they get from the franchisees after a poor
demand of these products. B stores sales those products on a higher discount rate. Reebok
is having 10 % of B stores in India.

The Reebok entered India with 80:20 JV with Phoenix Overseas Ltd Phoenix is Asias
largest footwear manufacturer with a capacity of 1000 pair per day Reebok started with
13 retail store in India.

Companys first concept store was launched in Delhi in 1999, named Planet Reebok. In
Aug 2001 Reebok entered into retailing partnership with Bata India for sale of Reebok
and Rockport footwear in Bata outlet. By 2001, Reebok with 65 exclusive stores and 700
shop-in-shops, had 55000 sq. ft of exclusive retail space in 78 cities. By the end of 2005,
the company was retailing from 182 franchise stores. It also retails from 2000 multi-
brand retail outlets.

The store count as of now is more than 600. Reebok reaches out to its target customers
through its 500 exclusive Reebok Stores, 200 Shop in the shop outlets & 2500 dealer
outlets. The company has plan to tap tier II and Tier III cities. Reebok is planning to add
around 60 lifestyle stores also. It has the largest retail store in Hyderabad in India.
 CHAPTER 3 : STRATEGIES OF SUPPLY CHAIN
MANAGEMENT

Reebok started its operation in INDIA in 1995 and it has dominated the India sports
market with 51% market share far ahead of its competitors NIKE, PUMA etc. Reebok
India has a PAN India presence with its branch offices in Mumbai, Kolkata, Bengaluru. It
has always challenged and lean through creativity. It has introduced products in a wide
range of sport shoe category from running, walking, aerobics, lifestyle, and newly
introduced Runtone ready, Zigdynamic, Realflex etc. It celebrates individuality in sports
and lifestyle. Reebok has introduced its internationally acclaimed fitness programs in
India, conducted under the banner of Reebok Instructor Alliance, which is dedicated to
fitness instructors, personal trainers and health club owners. Reebok has trained and
certified more than 800 trainers till now.

REEBOK STRATEGY: To continue with the heritage and take the business forward,
Reebok has developed a roadmap which targets the women and kids sports, Revive
classics, challenge Mens sports, Develop a variety of products.

Reebok has a Corporate Citizenship platform and encompasses four key areas:

Philanthropy:
The Reebok Foundation focuses its philanthropy in communities where Reeboks
offices are located. They have worked with 500 non-profit organizations as a part
of their social responsibility. The Foundation strives to promote social and
economic equality by funding non-profit organizations delivering programs aimed
at inner-city youth and underserved groups to empower youth to fulfil their
potential and programs that provide youth with the tools they need to lead healthy,
happy and actives lives.
 Programming:
They offer a wide range of programming designed to inspire and engage their
employees including time off to volunteer, matching gift programs, and the
REACH product donation program and through the Reebok4Real Human Rights
Student Advocate Program.

Partnerships:
They seek partnerships which reflect their commitment to being responsible and
making a difference. These collaborations include working with the athletes and
assets and an active sponsorship of the Avon Walk for Breast Cancer.

Sustainability:
They take pride in their long standing efforts to set responsible workplace
standards and to reduce their impact on the environment. As part of the Adidas
Group, they continue to help ensure fair, safe and healthy factory conditions and
believe that all workers involved in the production process deserve to be treated
with dignity and respect. They also strive to reduce the environmental impacts
through design process, day-to-day operations and in the supply chain.

SEGMENTATION-TARGETING-POSITIONING STRATEGY OF
REEBOK

SEGMENTATION STRATEGY
Reebok is the market leader in sports shoe industry in India. After reebok entered Indian
market, they used exclusive strategies according to the Indian consumers needs, wants
and demands to segment, target and position itself. Although it had the first mover
advantage , but it still has maintained its numero - uno status in the market via its
efficient and effective innovative marketing strategies.
Segmentation forms the initial step of any marketing strategy where the firm divides the
market into small market segments where the consumers have similar kind of needs and
the firm can cover a substantial amount of market by a single strategy specific to the
market segment. There are many bases for market segmentation, we will focus on the
variables/bases reebok has used along with the reasons for using them

TARGETING STRATEGY

After segmenting the market, marketers next job is to select which markets to enter and
which not to. This process is called MARKET TARGETING, where the firm selects the
market on the basis of segment size and growth, segment structural attractiveness and
company objectives & resources. Reebok has been very specific when it comes to
targeting strategy.

Reebok has used differentiated marketing along with micro marketing for targeting its
market segments. For Example, Reebok segmented its market according to income
group, age and gender, the specific strategies are shown below:-
According to Income group, reebok had a target of 10 million people with annual
household income of Rs. 45000 and above for the middle priced product and 2
million people with annual household income of Rs.75000 and above for premium
priced products.
According to Age group:-
 Reebok found the growth opportunities in the kids market segment and to
effectively/efficiently tap that market potential, Reebok further segmented the market
into two segments i.e. kids in the age group 3-7 years and 7-12 years and introduced
different products according to different income groups and provided special stores
for these products. E.g. sports lovers( Type of specialty store for high- income group),
betts and betts ( for low-income group).
According to gender:-
Reebok similarly entered into the womens market and became the market leader
there by introducing a special product line and store for womens sports footwear.
E.g. Reetone.

POSITIONING STRATEGY

There are many positioning statements for Reebok like-

Premium quality brand at a reasonable price.
Brand that fits me

But Reebok wants to position itself as A FITNESS BRAND and for achieving that in
india it has continuously been informative and innovative in its strategies. For an
effective communication to its consumers it has used various promotional strategies and
has made it presence felt by continuously increasing its reach, Reebok has 220 Retail
outlets and its products are also available in over 2000 multi- brand outlets. For its
positioning statement, reebok has signed different ambassadors for different sports, e.g.
M.S.Dhoni for cricket, Tiger woods for Golf and many more.

COMMENTS ON THE SEGMENTATIONTARGETING-

POSITIONING STRATEGY OF REEBOK

The biggest strategical advantage of Reebok over its competitors strategy has been:-
Its understanding of the consumer needs of the market segment, its response for
the changing needs and introduction of new products to the market and the
efficient use of its supply chain to make it to the market as soon as possible.
 The continuous market development along with the product development to
complement it has also been one of the biggest strength of Reeboks success in
india. E.g. Reetone , product for women sports shoe market and opening new
stores specifically for womens sports-wear.
Understanding the Indian consumer. E.g . reebok realized that a broader forefoot
suits more to Indian consumer, hence they developed all the shoes that had a
broader forefoot to suit the Indian consumer.
Provided premium quality at a reasonable price. E.g. Reebok realized that the
Indian consumer is highly price-sensitive and diverse, hence it provided a range
of products under different price range.

SUPPLIERS OF REEBOK

From shoe uppers to whole shoes, made-in-India sports footwear is starting to go places.
All the big brands in the sports footwear industry Adidas, Reebok, Nike, Puma and
Fila are already manufacturing shoes in India through outsourcing contracts with
domestic companies such as Lakhani Arman group and other major manufacturers are on
their way in.
Apache Footwear Ltd, a China-based company and the largest manufacturer of Reebok
shoes worldwide, recently signed an agreement with the Andhra Pradesh government to
set up a manufacturing facility on a 314-acre site that will be accorded all the benefits of
a special economic zone. The company has said it plans to manufacture one million pairs
of shoes at the facility.

Footwear Reebok uses footwear factories in 14 countries. Most factories making Reebok
footwear are based in Asiaprimarily China (accounting for 51% of total footwear
production), Indonesia (21%), Vietnam (17%) and Thailand (7%). Production is
consolidated, with 88% of Reebok footwear manufactured in 11 factories, employing
over 75,000 workers.

Apparel Our apparel supply chain is larger, with factories in 45 countries. The process of
purchasing products from suppliers is organized by region. Most (52%) of our apparel
sold in the US is produced in Asia, with the rest coming from countries in the Caribbean,
North America, Africa and the Middle East. Apparel sold in Europe is typically sourced
from Asia and Europe. Apparel sold in the Asia Pacific region is typically produced by
Asian-based manufacturers.

FACTORY LIST

DEMAND FORECASTING METHODS

Reebok use time series forecasting method for forecast the future demand. In time series
forecasting method they use exponential smoothing method to see the effect of other
factors on demand.
The exponential smoothing is an averaging method that reacts more strongly to recent
changes in demand by assigning a smoothing constant to the most recent data more
strongly; useful if recent changes in data are the results of actual change (e.g., seasonal
pattern) instead of just random fluctuations.
Demand forecasting for the franchisees done by the Reebok India ltd by the above
method.

STOCK REPLENISHMENT CYCLE AND METHODS

Stock is purchased on the basis of demand forecasted for the given season. As the Reebok
distributors warehouses are not so far from the store in Delhi, it takes less time to
transport the goods to stores so the store owners maintain the inventory as convenient to
them.

BUDGET ALLOCATION

Reebok allocates a big amount to its advertisement campaign because there is strong
competition with Nike and puma. Reebok is a well known global brand and on the way to
achieve the highest position in sport shoes industry. Reebok spends about $215 million in
its advertisements. Reebok spends 22% in TV broadcast, 20% on news paper, 5% on
internet, 8% 0n radio, 12% customer magazine, 15% direct mail, 8% on yellow pages,
4% business publication, 6%on others of its promotional budget.

MODE OF TRANSPORTATION

Transportation is to move the products from one place to another. There are mainly three
kinds of transportation will be used in the Adidas shoes commodity chain. First
transportation method is by air, which has the highest speed and cost. The secondmethod
is ocean freight which takes the longest time but have least cost. The last one is road
transportation, which has the medium speed and cost among this three methods.
Transportation is involve in multiple activities in the commodity chain, such as transport
products to warehouses, and transport products to customers. The selection of different
transportation is based on the distance between the starting point and the destination, the
cost and the delivery time. When transport products from the production factories to the
retail stores oversea, reebok choose the sea freiwght as the main shipping method.

TRANSPORTATION OF GOODS

In supply chain the retailer order the required quantity to the distributor and it is the
responsibility of distributor to transport the product to the store location. But when
distributors purchase the stock from Reebok India ltd it is again responsibility of
distributors to transport the stock from Reebok warehouse to own warehouse or store.

DISPLAY DECISIONS

A retail display is a merchandising display that attractively showcase shop inventory or

featured products. An immense number of products in the retail market are competing for
attention. And the offer of new product seems to increase day by day. Its good to know
that at least 60% of purchases are decided right in the store. In display decision manly
new and highly demanded products are highlighted in store. As the demand and trend
change the location of products in store also change. Retailers display the products in
such manner that influence the buying decision of the customers.
Right choice of retail display and retail space design will help store owners to Differ-
entiate from other stores and persuade shoppers to come in, stay longer and come back.

DISTRIBUTION CHANNEL OF REEBOK

Reebok uses a Multi Channel Distribution System which includes Direct Channel.

STEPS TAKEN BY REEBOK FOR GREEN SUPPLY CHAIN

MANAGEMENT

Reebok reports it is working toward replacing conventional cotton, with the aim of
using 100% sustainable cotton by 2018. The brand is committed to increasing the
sourcing of Better Cotton Initiative (BCI) cotton over the next few years, and is a
founding member of the BCI initiative. The brand states that in 2016, 68% of the
cotton it used globally was Better Cotton, exceeding its original target of 60%. The
Reebok BCI sourcing countries include Turkey, Brazil, US, Mali, Pakistan and India.

/ Reebok states that it is using recycled polyester(rPET) in some of its products,

and that rPET was the main material used in the 70,000 volunteers uniforms in the
2012 London Olympics.

/ The brand states that in Germany, its energy mix includes more than 60% energy
renewablesand to achieve further reductions in carbon emissions, its German sites
are investing in carbon-offsetting certificates.

/ The brand says that GHG emissions account for 42% of its total environmental
impacts with more than half of these being CO2 emissions (54%) caused beyond
direct suppliers. The impacts occur during the processing of raw materials, e.g.
leather production, which is mainly due to cattle farming, as well as high energy use
for production of synthetic materials.

/ The brand does not use PVC in the majority of its products (some local
production of athletic footwear products still uses PVC) and has eliminated the use
of polyethylene chloride for having a similar environmental footprint as PVC. The
brand appears to require testing for various polymers and lists these as restricted
substances in its restricted substances policy.

CUSTOMER RETENTION AND POLICIES

We, Reebok International Ltd., want to give you the best Reebok experience possible.
We use the personal information you share with us to make our products and services
and your experience even better.
Reebok products and services, engagements and offerings: we will use your personal
information to provide you with the products and services you have requested from us,
such as promotions, membership of Reebok Communities, Reebok loyalty programs,
events and our apps. This will, if applicable, include the use of your personal information
for submission in contests, Prize Giveaways and promotions, using your contact details
for events and using information like your location for our mobile apps.
The veteran in this regard is Reebok , which has been telling consumers for
years to I Am What I Am in all of its marketing and branding. It also seeks
to connect with consumers through storytelling, innovation and emotion.

CHALLENGES FACED BY REEBOK

The industry is controlled by fads and the fads are nearly not predictable.
Reebok facing strong competitors in the casual market, and competitor's products are
trendy, fashionable, and fleshy.
Competition in each of the markets for the Company's products is manifested in a variety
of ways, including price, quality, brand image and ability to meet delivery commitments
to retailers.As with its international sales operations, the Company's footwear and apparel
production operations are subject to the usual risks of doing business abroad, such as
import duties, quotas and other threats to free trade, foreign currency fluctuations and
restrictions, labor unrest and political instability.

INVENTORY MANAGEMT OF REEBOK

There are different ways Reebok can approach inventory planning.

Postponement and risk pooling:

Given the uncertainty associated with player demand, Reebok should make use
of postponement and -
try to push back the decision to print the players' number and name onthe jersey as
back as possible

By postponing the decision to nearer the regular season, Reebokwill have a better idea of
the demand for the individual players. This will help prevent Reebokfrom having too
many jerseys of a player it does not need. Postponement also means thatReebok is
aggregating the jerseys and such aggregated forecast are more accurate. Reebok willbe
able to enjoy some of the benefits from risk-pooling as high demand for a certain player
in ateam will be offset by a lower demand for another. Reebok will be able to enjoy some
of thebenefits from risk-pooling as high demand for a certain player in a team will be
offset by alower demand for another.

PUSH - PULL SYSTEMS:

Currently, there are two screen printing facilities within Reebok's supply chain: one is at
theContract Manufacturers, and the other one is at Reebok's distribution centre. Since
there arevery high variations for the dressed jerseys of each player, Reebok might
consider not orderingany dressed jerseys from the CMs. That is, the manufacturing
process should start by making ageneric product that is later differentiated into a specific
end-product. Till this time there can be-
Push Strategy - in place.Moreover, the

Pull Strategy - of which the supply chain is driven by demand would be helpful inthis
scenario since the lead time from Screen Printing at Reebok is 1 week, relatively
lowcompared to the current scenario of which the lead time is about 4+1=5 weeks
because itincludes the transportation time. In this way, the company will achieve the
higher service levelby deploying a responsiveness and flexible supply chain, which will
work well for its products.
 CHAPTER 4 : RECOMMENDATION AND FINDINGS

RECOMMENDATIONS:-

Tap the high-income group by bringing high priced product. Indian consumers
purchasing power is increasing, so the high-priced product will be a big contributor
to the revenue.
Increase the product-line for kids sportswear market in India.
Promotions through internet and other media channels should increase.
Lucrative offers like sale on product, purchase coupons etc. on regular bases to
retain customer loyalty.
Tie-up with different sporting and fashion events to promote its new products.
Capture the highly growing rural marketing with low- and medium- priced
products as the rural market purchasing power is increasing along with
strengthening its supply chain.

FINDINGS

From the analysis of data, we found Reebok has tough competition in market with
Nike, Puma etc.
Due to the high prices of products, it only caters to the need of higher Middle class
and top class of the society.
Reebok has excellent brand image, and it also ensures quality and reliability of
products.
Males are the main customers of Reebok as compared to female.
Youngsters are the prime customer of Reebok.
Customer having annual income 4 to 6 lakhs are the main target Market.
There are more occasional customer as compared to regular.
Customers are attracted by signage (reduced price, sales promotion etc.)
 Customers are more concern about brand image and price when buying from
Reebok.
Most of the customers believe that Puma can be a substitute of Reebok.
Moreover, in terms of genders response it was found that women were more
influenced by signages as compared to men in making their purchase decisions.
Non-working women were the ones who were much influenced by signages.
The degree of attractiveness of different elements in decreasing order is
Display>Store Front>Lighting>Interior Design>Music>Color

CONCLUSION

From the field-study conducted at the Reebok showroom located at Shubhash Nagar,
New Delhi we was able to conclude that people buy Reebok products mostly because of
comfort and they mostly go for the quality & brand value of the product. The after-sales
service provided also acts as a factor for the purchase decision.
The product quality & comfort along with style & promotional strategies of using sports
celebrities as their endorser has helped Reebok gain the significant market share.
We conclude sustainable competitive advantage will be achieved relative to Nike,
especially in regards to increased branding. However, Adidas-Reebok will not achieve a
higher market share over Nike immediately, due to the length of time branding requires.
After analyzing financial statements from all three companies, as well as conducting
several analyses, including the industry, customers, competitors, and marketing
strategies, it is clear to us that Adidas-Reebok strategically will be positioned better than
Nike.

Majority of the customers i.e.(89%) are aware about Reebok shoes.

Friends i.e.(74%)is the most important source through which customers came to
know about Reebok shoes.
 Price i.e.(30%) & quality i.e.(23%)are the factors which influence the customers to
purchase Reebok shoes.

Reebok i.e.(76%) is the most preferred brand of sports shoes in Bhilai city city

SUGGESTIONS

There are still efforts are needed to make people aware about Reebok shoes.

Reebok Company must provide after sale service to their customers.

Companies shall introduce or increase the range of their product in respect of price
so that a lower middle class people may also afford to have Reebok shoes.
Reebok should decrease the price of their products. As their products are very high
in range, middle and lower class of people could not think to afford it.

Reebok mainly deals in mens products, so there is an ignorance of womens and

kids product. They should make the products for them to increase their sales.

Reebok should increase the numbers of their outlets in the big cities and set up new
outlets in small developing cities so that consumer will not have to go in the big
cities for purchasing the products.

COMMENTS ON COMPETITIVE ADVANTAGE OF REEBOK

Quality and price both play a very important role in the customer buying process in India
and as it is visible from the perpetual model that Reebok has a clear advantage in both
these attributes. Reebok focus on the middle income buyer also, which is a burgeoning
class in India, and capitalises on increasing women sports shoe market which is not that
significant for its competitors. The product differentiation of Reebok is based on
technology rather than on sports, as is the case with its competitors, and hence enjoys
maximum customer satisfaction. Reebok has started to tap the potential kids sportswear
market. The competitive advantage that Reebok relishes the most is its supply chain,
Research and development department and its understanding of customer needs.

LIMITATIONS

Limited time for the study.

Respondents were hesitating to give the response.

Scope of the study is limited to the Gondia city only.

During the analysis of data, there is possibility of occurrence of human error.

BIBLIOGRAPHY :

www.kicksneakershoes.com
http://www.mouthshut.com/review/old-recent-reviews.php
http://www.reebok.com
http://www.scribd.com
http://en.wikipedia.org/wiki/Reebok
https://www.owler.com
https://www.wikipedia.org/