Go big or go home. This is the theme that Reebok India has weaved throughout the 12 years that it has existed. Currently, there are 525 Reebok 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 40 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 tier III cities (suburban or rural neighborhoods). I believe that Reebok’s strategic marketing plan will create a unique brand for the company which 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 unveiled into one of the dominant markets 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 stirred more attention to the sports world. According to Rediff.com columnist, Meenakshi Radhakrishnan-Swami, Reebok’s mind 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. Therefore, Reebok slowly began to change its positioning and target not only men, but also women and children. Now the company’s products are open to a wider range audience.
With a large consumer base, Reebok took it another step further to expose the corporate image of the company. Reebok India managing director Subhinder Singh Prem (to the right) explained that the focus for Reebok “is on promoting sports and fitness by sponsoring various sport icons and teams in India. The objective behind this initiative 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 such as footwear, apparel and equipment” 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 introducing a women’s and children’s collection as well as training individuals to become fitness instructors. As a result, Reebok has created a new fitness trend in India.
In recent news, Reebok announced 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 (below) 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 audience. The company is awarding those players who have unique talent and deserve attention but may not be able to afford to participate in the distinguished programs. Therefore, Reebok India is establishing its brand as a well rounded athletic company that cares about all athletes by making sure that those athletes that have talent receive that attention receive it. In doing so, the sports franchise becomes more 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 the sports franchise.
I believe that Reebok India is an excellent example of marketing in the sports business. The company specifically focuses on the 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 it is presenting itself as a company that values all the talent and effort that is put into sports. Therefore, with companies creating a variety of different products, the key to differentiation is branding.
Source : http://sportsmarketingplanet-ch.blogspot.com/2007/10/sports-branding-reebok-india-sponsors.html
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