Reebok: Brand Development And Sales Promotion Activities .

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Reebok: Brand Development andSales Promotion Activities for Reebok IPL(Royal Challengers Bangalore) Campaign in BangaloreMohita Kaushik(PGDM No.:12150)Student, SDMIMD, [email protected] Joy NAssistant Professor - Marketing AreaSDMIMD, [email protected]

Comments by the FacultyThe Study titled ‘Reebok: Brand Development and Sales Promotion Activities for Reebok IPL(Royal Challengers Bangalore) Campaign in Bangalore” explores the possibility of brand loyaltybehaviour on sportswear and examines key brand loyalty factors – brand name , productquality, style, store environment and promotion strategies that can be adopted by leadingsportswear companies by collaborating with major events such as IPL. The study assumesrelevance as it is stated by FICCI that the Indian Sportswear Retail Market is set to grow rapidlyand will reach an estimated 400 billion by the end of 2015. Another pertinent factor that makesthe study timely is the immense potential that has been unlocked by the Indian Government byopening the country for multi brand retail by which the growth of organised retail is expectedto soar high.In a market where you have fewer but powerful players dominate, it becomes natural imperativefor the marketing managers to contribute investment and time in upholding brand identity,preserving brand loyalty and developing new lines so that they could occupy more marketshare. In this process, marketers realises the rising trends of brand switching and recogniseconsumer retention as an easier and more reliable source of superior performance. Thereforeit is important to acquire new methods, which are cost effective, to get more insights into thecreation of brand loyalty and it is in this context the study assumes greater relevance.Jojo Joy N180

Reebok: Brand Development andSales Promotion Activities for Reebok IPL(Royal Challengers Bangalore) Campaign in BangaloreAbout Industry – Sportswear RetailIndian Sportswear Retail Market, estimated at INR 365.8 billion, has evolved from aniche segment targeting only sportsperson, to a burgeoning consumer segment. Theindustry has seen rapid growth over the years, and is driven by change in lifestyle of the people,growth in income level, increase in sporting events, and entry of foreign players to IndianMarket after liberalisation. Other emerging trends in the industry are – Online Shopping, ProductInnovation (example – Reebok Zigtech and Easytone), Sports Merchandising, andLifestyle Positioning.Despite of huge success and growth in the organized sportswear retail market, the industryfaces certain challenges as counterfeiting, rising cost, low participation in sports, andunorganised players (approx. 70%).Though the major players in the Organized Sector are Liberty, Woodland, Nike, Adidas,Reebok, Lotto, Kappa, Puma, Bata, Fila, and Rockport, the project revolves mainly aroundReebok and its Marketing Strategies for Promotion of its IPL (Indian Premier League)Merchandise.About ReebokReebok, an American Inspired Global Brand and an oldest Shoe Company, is known for creatingand marketing Sports and Lifestyle Products, built upon its strong heritage in the segments ofSports, Lifestyle, and Women’s Category. The brand’s vision is to help every athlete – fromprofessional athlete to recreational runners on the ground to provide an opportunity by givingthem products and the feeling to aspire more, and to achieve what they are capable of. Reebok’sMission is to always lead and challenge through Creativity. The brand has always positioneditself as a brand of people with unique qualities, individualities, and the courage to forge theirown path to greatness. The individuality, the creativity, and the greatness of the brand issupported by its 2000 campaign “I Am What I Am”, which is one of the largest Global Campaignin the World.Reebok started its operation in India in 1995, the initial phases being difficult to figure out theright marketing mix for Reebok. Though gradually, by understanding the Indian Customers andtheir needs, Reebok became the Market Leader in Indian Sportswear Market.In 2006, German Sports Giant Adidas Group purchased Reebok for 3.8 billion, in an attempt tobe a world leader in Sportswear Market, the position being held by Nike. Post-merger,AdIdas-Reebok has delivered excellent product performance and excellent price performanceby developing great relationships with its stakeholders.181

Reebok – Association with SportsReebok has positioned itself as a premium sports and lifestyle brand. Given its positioning,and its strong heritage, Reebok has always been associated with leading sports throughoutthe world. Be it National Football League, Rugby Union, Brazilian Club, or Cricket, Reebokhas sponsored various teams across the World and has provided them with Uniform Jerseys,Side-line Apparels, Caps, and other related Accessorise.In India, Reebok has partnered with Formula One Racing, ICC, and IPL. In IPL, Reebok hassponsored kits for Teams – Royal Challengers Bangalore, Chennai Super Kings, Rajasthan Royals,Kings XI Punjab, and Kolkata Knight Riders.The Project – Reebok and Royal Challengers BangaloreIn IPL 6, Reebok has sponsored three teams – Royal Challengers Bangalore (RCB), Chennai SuperKings (CSK), and Kolkata Knight Riders (KKR). During the IPL duration, which was of two months,Reebok conducted certain activities in the three cities – Bangalore, Chennai, and Kolkata, toincrease the Brand Visibility of Reebok in relation to IPL, and hence to increase the Sales ofReebok IPL Merchandise.The activities conducted by Reebok in Bangalore, for Royal Challengers Bangalore Team, aremainly focused upon in this article. The project work done can be divided into two parts – Getting Endorsements in the form of Ad Spaces (Barter Deals) from Malls, Bars, andRestaurants in Bangalore, for promoting Reebok IPL Campaign (RCB Team). To propose and implement a BTL (Below the Line) Activity Plan for the same.Apart from the points mentioned above, other activities were also done which are covered inthe topics to come.Activity 1 – Getting EndorsementsThe steps followed for getting endorsements were –Step 1 (Database Creation)Bangalore Area was segmented on the basis of Popularity among Youth, Crowd or Footfall,Number of Bars and Restaurants, and Availability of Reebok Showroom. After Segmentation,Contact Information was collected of the Managers of various locations, and phone calls weremade to fix up the meeting, to discuss about the deal.Step 2 (Proposal Preparation)A proposal detailing about the type of Ad Space Requirement, Duration, Promotional Activities,and In Exchange, was prepared. The Proposal was either presented to the concerned person, orsent via electronic mails.182

Step 3 (Closing Deals)Seeing upon the interest of other party, and discussing with Reebok Marketing Team, few dealswere closed. The related work was coordinating with the Vendors for printing of Ads and properplacements of them, and delivering the promise to the Other Party.Deals Closed and Other DetailsThe areas covered in Bangalore were – Indiranagar, Koramangala, Brigade Road, and UB CityVitthal Mallya Road. Out of a number of deals proposed, few were closed, the details of sameare as shown in the table on the next page.Few Points worth noting in the entire process are – All the deals closed were Barter in nature, which means in today’s world of Advertisements,due importance is given to the non-cash deals. Majority of the Ads placed were of Standee kind, because the cost involved in printing of aStandee is low, as compared to any other print media such as Tent Cards, or Pamphlets. Since most parties would not prefer Barter over Cash, decent Negotiation is required,which also involves understanding other party’s requirements.The entire process can be described with the help of a flowchart shown belowCollecting the informationof the concerned person ofthe places targetted(example - VisitingCards,Ph.Nos.etc.)Segmenting the area onthe basis of popularity,Crowd, Availability ofReebok Store Compiling the Datain anExcel Spreadsheet Making phone calls, andseeing upon the interest,further filtering the listof possible locationsin that areaDatabase of an areais ready. Repeatingthe procedure forother areas.Figure 1 : Database Creation Approach183

Negotiating with him,to get the space at thebest possible prices.(Barter Tie Ups)Fixing anappointment with themanager and makingpresentationin front of him Database CreatedMaking call to theConcerned personand briefly explaininghim about the deal If the deal proposed isapproved, keepinga follow up of it tillit is closedUpon agreement of theother party, detailingabout the dealto ReebokFigure 2: Deal Closing ApproachTable 2 :BTL Activity DoneS.No.LocationType of Ad Space/EndorsementIn Exchange1.Forum Mall2 Standees20 IPL Jerseys2.ION Bar and Kitchen3 Standees10 IPL Jerseys3.Legacy of Punjab Restaurant1 Standee Tent Cards15 IPL Jerseys4.Java City Caf 1 Standee PamphletsRs. 5000 or a ReebokShoe5.Le Rock Pub Caf 1 Standee10 IPL Jerseys 10Reebok Caps184

Figure 3: Creative Placed at Various PlacesActivity 2 – BTL PlanA BTL activity or Below the Line Activity, can be summed up in three points - Low Cost tothe Company, Greater V isibility, and Direct Interaction with the Customers. Keepingthis in mind, and using the AIDA Model (Attention, Interest, Desire, and Action), seven ideaswere proposed. Out of the ideas proposed, three were selected by the Reebok Team, whichare given as follows:My Face, My Team, My IPLOn the day of IPL Matches, a tattoo artist can be hired and people will be given a chance to getan IPL Tattoo on their face, but along with a Reebok Logo. This will be done without charginganything in return.185

Head to Toe, It is Cricket, It is IPLA person completely dressed up in an IPL Cricket Player’s Outfit, i.e. wearing an IPL Jersey,Trousers, Leg Pads, Arm Guards, Gloves and Helmet, and holding a bat in his hand, roamingaround at a specific location, and doing batting actions sometimes in between.This can be done for three teams which Reebok is sponsoring – Royal Challengers Bangalore,Kolkata Knight Riders and Chennai Super Kings.Lend Your FaceA large proportion of Bangalore Population is College Goers or Youngsters. If we can ask someof them to have their Faces painted with an IPL Team Logo on one Side and Reebok logo on theother side, for a day, in a particular location, this will attract a huge attention because of itsunusual quirkiness. In exchange, we can give those students some goodies from Reebok.Figure 4: Logo Designed for Face Painting** The logo proposed for getting it painted on the face is as shown in the figure.The three ideas selected were in a way related to face painting, and the idea “Lend Your Face”was conducted in Chennai Expressway Mall, as said by Reebok Marketing Team, because alreadymany activities were going on in Bangalore.Activity 3 – Forum Mall EventAn event was organized in Forum Mall, Bangalore, where customers of Reebok and Fans ofRoyal Challengers Bangalore were given chance to meet the Team Players, but only after fulfillingone of the below mentioned conditions –1. People were asked to send their photographs cheering the RCB Team in Red, in a Facebookcontest organized by Reebok2. They have to make a purchase of Rs. 4999 and above from ReebokThe event was organized for two major purposes –1. Reebok’s association with IPL – Firstly, because of the event, Reebok gained more popularity,as the public was given the chance to meet the RCBs Players. Secondly, there was a directimpact on the sales that day which was increased because people were getting signedmerchandises from Reebok (signed by the players).186

2. Reebok’s launch of CrossFit – The second purpose of the event was to launch the CrossFitBrand of Reebok, which is mainly focused on fitness.Figure 5: RCB Team at Forum MallReebok – Other StrategiesApart from the activities mentioned above, which were only related to IPL, and Reebok’s Promotionin Bangalore, the brand has followed other approaches also, which are very well understood byits activities. These other branding approaches are –SponsorshipsSponsorship is the acquisition of right to affiliate or directly associate with a product or eventfor the purpose of deriving benefits related to that affiliation or association. The sponsor thenuses this relationship to achieve its promotional objectives or to facilitate and support itsbroader marketing objectives.Reebok sponsoring IPL Teams, and other Sporting Events, supports its positioning and relationshipwith sports. Moreover, it is using the name of IPL to promote its merchandise, and to establishan emotional connect with the customers.Strategic PartnershipsThe utilization of Promotion Partners such as teams, leagues and events is an importantpart of endorsing Brand’s Positioning. Reebok is partnering with some of the mostinfluential and accomplished people in the fitness industry to validate its key conceptsand positioning.Reebok key assets include Reebok CrossFit Games 2012 Champions Rich Froning Jr. and AnnieThorisdottir, as well as, renowned Yoga Instructor Tara Stiles. In 2013, Reebok has also partneredwith some of the premier fitness events in the world such as Reebok CrossFit Games. The samecan be linked to the Forum Mall event where the Cricketers and the General Public was involvedin few of the games of CrossFit.187

Co-BrandingCo-Branding is a frequently practiced in Fashion and Apparel Industry, which involves combiningof two or more brands into a single product or service.Promotional co-branding starts with endorsements with celebrities and institutions and canenhance the brand image. Sponsorships can be a part of such activity which provides ampleopportunities as described above.Reebok also has successfully pursued design and co-branding strategies with complementarypartners. In 2012, Reebok has deepened its partnership with CrossFit which is one of the fastestgrowing fitness movements in the world.In a nutshell, the activities of Reebok can be described by using the following model of BrandManagement System: h of tiesInter-communityevents(brand clients)Advertising,In-Store Animations,Street MarketingFunctionalTrialPost- PurchaseSatisfactionPromotionPromotions Time Perspective of the RelationshipShort-Term TransactionRe-PurchaseLong-term ReciprocalCommitmentFigure 6: Brand Management System188

The Brand Management System, plotted over a two-dimensional matrix, depicts the depth ofrelationship of Reebok with its Customers over time. It can be described as below.Reebok has tried to build the aspirational fulfilment among its customers by engaging intosponsorship events like IPL, as well as co-branding with brand such as CrossFit. By sponsoringthe IPL Teams, and providing merchandises from Reebok for Team Fans, Reebok is able to fulfilthe aspiration of the customers and hence leading into a Short-Term Transaction for itself.Also, Reebok kept its customers engaged through Website, and Virtual Communities formedover Social Media Sites, by introducing various Contests. This again led to the aspirationalfulfilment, and Re-purchase also, as customers were willing to purchase more in orders to winthe contests.Inter-community events, such as the Forum Mall event, where Reebok associated itself withvarious clients, which were the management of Forum Mall, Reebok’s Media Planner Team, andothers. This leads to a long-term relationship with clients and customers as well.Suggestions and RecommendationsApart from the brand development and sales promotion activites undertaken by Reebok in IPLseason 6, the following activities can also be undertaken:1. Pamphlets attached to the bills provide direct visibility to the brand, so it can be implemented2. ION Bar proposed to have a Stall Activity in its Bar, without any charges, that could be done3. Gift Vouchers or Discount Coupons on a certain purchase could be given, so as to haveincreased sales, word of mouth publicity, and increased customer relationships4. Mobile Advertising could be done by sending Bulk SMSs, and by advertising on GamesDownloading Sites on Mobile Applications related to IPLReferencesAaker D A, 1996. Building Strong Brands, Free Press, New York.About Reebok. (2013, March 10). Retrieved from http://corporate.reebok.com/en/about reebok/default.aspAdidas reebok-merger. (2013, May 8). Retrieved from asreebok-merger-1983240.htmlAIDA (marketing)# Purchase Funnel. (2013, May 29). Retrieved from http://en.wikipedia.org/wiki/AIDA (marketing)#Purchase FunnelAnnual Report 2012. (2013, April 18). Retrieved from sets/pdf/annual reports/2012/GB 2012 En.pdf189

on-bump. (2013, March 28). Retrieved 787/Below-the-Line Promotion. (2013, April 2). Retrieved from http://www.ofs.edu.sg/BACCpacks/Marketing student/page 204.htmBTL Promotion. (2013, April 8). Retrieved from http://en.wikipedia.org/wiki/Below the line (advertising)Doing Business without Exchanging Money: The Scale and Creativity of Modern Barter. (2013).California Management Review, 55-58, 64-67.Principles and Tactics of Negotiation. (2013, March 27). Retrieved from http://jop.ascopubs.org/content/3/2/102.fullReebok Strategy. (2013, April 3). Retrieved from rategy/reebok/Reebok history. (2013, April 3). Retrieved from http://corporate.reebok.com/en/reebok history/default.aspSportswear Retail. (2013, May 9). Retrieved from tail—Wholesale/Key-driversAndrew M Kaikati, J. G. (2013). Doing Business Without Exchanging Money: The Scale andCreativity of Modern Barter. California Management Review, pp. 55-58, 64-67.Kapferer, J. N. (n.d.). The Brand System. In J.-N. Kapferer, The New Strategic Brand Management(pp. 160-163).190

their needs, Reebok became the Market Leader in Indian Sportswear Market. In 2006, German Sports Giant Adidas Group purchased Reebok for 3.8 billion, in an attempt to be a world leader in Sportswear Market, the position being held by Nike. Post-merger, AdIdas-Reebok has delivered excellent product performance and excellent price performance