1.1 Company Background
Reebok was instituted as a companion company to Joseph William Foster and Sons, founded in 1895 in Bolton, Lancashire, England. Reebok International Ltd. was formerly known as Reebok USA Limited, Inc. Reebok designs, markets and distributes sports, fitness and casual footwear, apparel as well as equipment. It is an international brand that creates and caters sports and lifestyles products build upon a strong legacy.
The company’s international headquarters are situated in Canton, United States, with regional offices in Amsterdam, Montreal, Hong Kong and Mexico City. They also operate about 150 factory direct stores.
This brand reflects ingenuity and the desire to continuously pursue a fuller life through fitness. Reebok is widely known as one of the world’s leading athletic footwear and apparel markers. The company first gained their popularity by opening up a new market for athletic shoes and exercise shoes for women who are interested in fashion as well as function. Subsequently, they started to expand into other sports and products and by seeking business around the world. The company offers their products to a range of customers from professional athletes to recreational runner and kids who are into sports.
Reebok currently sells footwear, bags, accessories such as caps, bottle, socks and apparel in the sports, fitness, and casual sector. It serves customers through its retail stores and other sports retailer in the United States and internationally.
1.2 Reebok in Singapore
There are only 4 direct outlets of Reebok in Singapore. Other than that, they can usually be found in Royal Sporting House which is located at various outlets. Reebok in Singapore offers different types of sport shoes and they are all categorised accordingly based on the sports performance such as, running shoes, training shoes, lifestyle shoes as well as studio shoes. Same goes to their apparels and accessories which they provide different types of product lines and categories.
2. REEBOK COMPETITORS
2.1 Reebok closest Competitors
Based on a research, Nike and Fila are known to be the two closest competitors to Reebok compared to the rest of other brands that have been shared in the previous page.
Nike was formed in 1964 and acquired its name from the Greek victory goddess in 1978. It is the international number one apparel and shoe company. Nike is a successful and innovative marketing company. The company continuously sets new trends and develops new products year after year. With the addition of manufacturing good quality athletic shoes, and other products, Nike has launched many successful marketing campaigns. As a result, this is becoming the topmost competitor of Reebok.
The company gets its reputation from the fact that it designs, manufactures and sells only quality varieties of products that are really needed when playing soccer, basketball and running among other athletic activities.
Women, men, and children training have all become easier and more interesting courtesy of Nike as it sells sports-inspired products for all these groups and classes of people. Various recreational and competitive activities such as tennis, golf, and walking have their products having been branded Converse and Hurley, which is Nike’s marketing branding.
Similarities between Nike and Reebok
• Both offer a lot of product lines and categories such as apparel, running and training shoes.
• Both focus more on core sports
Differences between Nike and Reebok
• Positive- Reebok’s shoes are more affordable than Nike.
• Negative- Reebok is not as highly advanced compared to Nike.
• Both are reachable and can be purchased through website
Fila saw that it was fit for exercisers to stay fit in style. The company, which has its subsidiary in Korea, designs, develops and markets leisure shoes, sportswear, athletic brand as well as other sports accessories. Through Fila’s website as well as at some of the major stores such as Foot Locker and Kohl’s, these ranges of products are sold.
One thing that has made Fila U.S.A give Reebok a big problem is its diversity in what it offers the sporting sector. Unlike Reebok that mainly specializes in running and training shoes, Fila deals in basketball, tennis, golf, soccer, running and yoga inspired sportswear as well as sports-inspired street wear.
Though Adidas is still a powerhouse when compared with Fila, the advertisement & marketing campaigns put in place by Fila will make it pass Reebok in the near future if the latter doesn’t up to its game.
Similarities between Fila and Reebok
• Both offer full product lines in categories like running, jogging, yoga and etc.
• Both are reachable and can be purchased through website
Differences between Fila and Reebok
• Fila produces more stylish and white colour shoes compared to Reebok
• Fila more affordable than Reebok.
2.2 Rationale choice of the chosen Competitors
I chose Nike and Fila since they are the most competitive competitors compared to the other branded brands. Just like Reebok, both Nike and Fila sell different product lines to different group of people. Nike owns more than 1000 retail stores compared to Reebok, also due to its tremendous presence and revenue, as well as the brand valuation, Nike is the highest among all the competitors. As for Fila, they provide more sporting sector compared to Reebok. They produce their own golf shoes specifically for those who play golf. Hence, this could be the factor of why Fila is one of the Reebok’s upmost competitors.
3. CONSUMER BEHAVIOUR
3.1 Consumer Involvement
Reebok has its own high and low involvements which varies on the consumers. Low involvement is when consumers make a quick decision making and has gathered information on the product beforehand. If the product is inexpensive, it poses a low risk for the consumer because they know they make a mistake on purchasing it but they don’t feel regret as it is inexpensive in the first place. As for high involvement, they need some time to gather as much information about the product before purchasing it. Hence, this will lead them to making slow decisions as the need more attention and advanced understanding on the products.
Based on a research, consumers for reebok tend to have high involvements when it comes to purchasing different type of sports shoe. They tend to make a comparison between other sport shoes like Nike and Fila as they also have varieties of sports shoes provided. If the consumer prefers a comfortable, simple yet high branded shoe, they may face a bit difficulty as there are also other brands that offer the same thing. In terms of price and quality, they may choose other brands that are cheaper and normal quality than Reebok. Compared to Reebok, Fila offer slightly lower prices than Reebok. Hence, this may lead the consumers to make slow decisions as they need to make more comparison to other products that may sell a bit cheaper yet high quality than Reebok. As for low involvement, if the consumer is loyal to the brand, they may still purchase the brand without having better understanding about the other brands.