Reebok's Gameplan in India

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Case Details:

Case Code : MKTG049
Case Length : 10 Pages
Period : 1991-2002
Pub Date : 2003
Teaching Note : Available
Organization : Reebok, Adidas and Nike in India
Industry : Footwear and Apparel
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

However, the parent company had issued a mandate that its Indian subsidiary should stick to the company's vision of instilling fitness consciousness among people and, at the same time stay focused on maintaining its leadership position in India.

Reebok underwent several changes in order to increase its visibility in the Indian market. It forayed into the kids footwear market where the sales volumes were higher. However, Reebok did not want to lose sight of what it originally was - a fitness brand.

The company felt that its fitness platform would fit well in the Indian market as it was better understood than sports. However analysts felt that the fitness footwear and apparel market in India were at a nascent stage, and had limited scope.

While Reebok made some adjustments in its marketing strategy in India, Nike and Adidas were very cautious while entering the Indian market. Both Nike and Adidas positioned themselves as lifestyle products.

Background Note

The liberalization of the Indian economy in 1991 led to an increase in the buying capacity of the country's middle class. This created optimism among industry players regarding sales in the premium segment (Rs. 700 - Rs. 1,200) of footwear.

During the same period, many Indian manufacturers also came up with a wide range of sports shoes (Phoenix's Power Range, Liberty's Force 10 and Geosport, Action)¹. They catered to the middle class sports lovers with shoes priced between Rs.500 and Rs.750...

Excerpts >>

1] Phoenix is Asia's largest footwear manufacturer with a capacity of 10,000 pairs per day.


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