Nike Vs Reebok Final

Presented By:
Presented To:
Amit Jha(01)
Ashish Bisht(05)
Divya Goyal(15)
Rahul Bhat(60)
Prof( Dr.)
Jayrajsinh Jadeja
Nike
Parent Company
Nike Inc
Category
Apparel, Sports Equipment and Accessories
Reebok
Parent Company
Adidas
Industry
Sports Equipment
Sector
Lifestyle and Retail
Sector
Lifestyle and Retail
Tagline/ Slogan
Just do it
Tagline/ Slogan
I am What I am
USP
Shoesthat are made for professional
Founded
1895 (as J.W. Foster and Sons) in
Segment
Sports enthusiasts
Products
Sports wear & Footwear
athletes
Target Group
Men, women and children from urban upper-
middle and upper class
Positioning
High quality, high price which gives
satisfaction and comfort
England, United Kingdom by J.W Foster
Target Group
Men, women and children from urban
upper-middle and upper class
Positioning
High quality, moderate price with timely
discounts
Mission Statements
Nike
To bring inspiration
and innovation to
every athlete* in the
world
* If you have a body,
you are an athlete
Reebok
To be the leading
sports brand in the
world
* I am What I am
Industry / Products
Nike
Athletic Shoes
Apparel
Sports Equipment
Accessories
Reebok
Footwear
Sportswear
Sports Equipment
Market Segments
Nike
Running
Footwear
Clothing
Golf
Footwear
Clothing
Soccer
Footwear
Clothing
Reebok
Sport Performance
Footwear
Sport Style
Clothing
Key Competitors
Nike
Adidas
Reebok
New Balance Athletic
Shoe, Inc
PUMA AG Rudolf
Dassler Sport
Reebok
Nike
Amer Sports Corp
Callaway Golf
Company
Acquisitions
Nike
1995: Bauer
2002: Hurley
International
2003: Converse
2004: Starter Brands
2008: Umbro
Reebok
2005: By Adidas
COMPETITORS
SWOT- Strengths
Nike
Swoosh Logo
Innovative
Technology Focus
LIVESTRONG
Campaign
Niketown
Conservative
Finances
Reebok
Attractive
logo/Tagline
Has ADIDAS as its
parent company
Leader in Corporate
Responsibility &
Sustainability
Buyer Loyalty
SWOT- Weaknesses
Nike
Male Dominate
Executive Board
Child Labour
Reebok
Low labour costs
Bad publicity of
unethical practices
SWOT- Opportunities
Nike
Growth in Mens
Footwear
Recent Growth in US
Market Share
Reebok
Continue Partnership
Development to acquire
more organisations as
done by parent
company
Enhance brand
visibility by opening
sports academies
across the world .
SWOT- Threats
Nike
As it is an
international brand
currency fluctuations
of countries affects
the business
Adidas
Footwear market is so
competitive, major
competition from
other brands
Case Study:
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, 1978.
An American multinational
corporation that is engaged in the
design, development and worldwide
marketing and selling of footwear,
apparel, equipment, accessories &
services.
It is the world's leading 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).
Nike- Downfall
In 1983,Inventory of 22 million pairs of unsold
shoes.
In 1984, Earnings dropped by 29 percent.
Lost No. 1 title to Reebok
Downfall-Reasons
Reebok International Limited, a subsidiary of
German sportswear giant Adidas, had been

making shoes since 1895.
Aerobic craze- Freestyle shoes, sales jumped
from $1.5million to over $600 million in 3 yrs
(1981-84).
USP
Reebok -- Fashion
Nike -- Performance
Downfall-Reasons(contd.)
U.S. sales of aerobic shoe market jumped upward by
450% between 1983 and 1985, Nike didnt enter till

1985.
Running shoes had outgrown fashion of the 1980s.
Nikes problem was :
The company had never outgrown its athletic youth or
learned to keep its winning streak in perspective.

Hired managers who had more experience on running
tracks rather than sitting behind the desk.
Arrogance arising from past success in accurately
predicting the market
In 1983, Knight handed over the controls to the Vice
President for marketing. Company resembled a a

team without a coach.
Come Back
In 1985, reducing the inventories by significantly
discounting.
Lay off about 400 employees - one-tenth of work force.
Repairing brand image apparel buyers
Nike responded to changes in Americans exercise habits
tailor made shoes for each activity :running, cycling,
walking, tennis et cetera.
Nike sponsored Michael Jordan, the NBA
star and
promoted Air Jordan Basketball shoe, for which Nike paid a
sum of $ 2.5 million for 5 years.
In 1984, Nikes basketball line showed a 49% increase in
sales. Accounting for 39% of all Nikes 1985 domestic
footwear sales.
In 1984, Reebok fell far behind Nike, with domestic sales of
less than $300 million.
1986 swap in positions. The US athletic shoe market now
totally nearly $2.73 billion, Nikes sales figure of $620
millions was far behind Reeboks astounding $850 million.
Results
1988 Nike gained
on Reebok rapidly.
Diversified out of
sportswear.
Market share: Nike
increased to 25%,
Reebok fell to 32%
Present Scenario (Nike):

Nike fiscal 2013 sales were $25 billion, growing in the high singles.
Nike was clearly the market leader in sport footwear and apparel.
In 2013, according to analysis of he www.SportsOneSource.com (SOS)
data, Nike Inc. had nearly at 59% sneaker market share at retail in
the US, while Adidas Inc. had about 10%. Interestingly, when Adidas
acquired Reebok almost a decade ago, the combined companies had
about 18% market share in the US.
Nike's most exciting new product last year was an app
called Making that helps companies measure the environmental impact
of using different materialswhich made up approximately 60% of
Nike's footprint and spurred the creation of the app.
Released last summer, the app evolved out of Nike's push to eliminate
the use of hazardous chemicals in the creation of its products by 2020
and has been incorporated into the curriculum at two design schools
and downloaded in 23 countries.
Present Scenario (Reebok):

Reebok is doing its best to sprint past competitors by partnering
with some of the biggest trends in fitness, including Spartan Race,
the multicity obstacle challenge, and Cross Fit.
The company's expanded portfolio led to double-digit growth in
both apparel and footwear, and its strategic relationships have
rolled over into R&D.
(Reebok will soon release a shoe designed for adventure-course
racing.)
Its biggest contribution to the fitness world thus far might be
Reebok ONE, a global online community designed for fitness
professionals to create profiles, promote their services, and, of
course, buy Reebok products.
The curate list of 5,000 trainers also serves as a directory for
consumers to find professionals based on philosophy and skill set.
We can consider it the online dating of training resourcesbut
without any fees.

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Presented By:

middle and upper class

satisfaction and comfort

England, United Kingdom by J.W Foster

upper-middle and upper class

German sportswear giant Adidas, had been

450% between 1983 and 1985, Nike didnt enter till

The company had never outgrown its athletic youth or

learned to keep its winning streak in perspective.

In 1983, Knight handed over the controls to the Vice

President for marketing. Company resembled a a

Present Scenario (Nike):

Present Scenario (Reebok):

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