Reebok has just done it with great strategies

Sheetal Patel - Televisionpoint.com | Gurgaon
It was a Wednesday morning when we reached the office of Reebok India located in Signature Tower, Gurgaon. The office was in stark contrast to the air of general gloom that seems to be serenading most of corporate India.

Reebok India recorded a turnover of Rs 1,400 crore in 2008 and is expecting to close this year with a higher amount than that. That perhaps was the reason behind the smiles on the faces of most Reebok employees, who walked the office corridors dressed in casual track-suits and gym-attire.

Subhinder Singh Prem

Speaking about passionate work culture, Subhinder Singh Prem, managing director, Reebok India, says, "We do not believe in creating an employee-boss relationship rather we have focused on creating an entrepreneurship model, where all senior employees act as businessmen."

Reebok India has just done it. With about half the Indian sportswear market under its belt, this Massachusetts-based sports and lifestyle brand has taken the game away from much bigger rivals like Nike.

Reebok India, a subsidiary of Adidas, happens to be the single nation success story for the global sportswear conglomerate. For the record, in global markets, Adidas and Reebok combined, do not come close to posing a threat to Nike's numero uno position.

"For our parent company, India is among the three fastest growing markets now. I feel the team quotient has not changed in fundamentals over the last 15 years, and it is one of the reasons for success in India." says Prem.

On the marketing front, the ads and tag lines of Reebok have changed countless times. Prem says, "About 20 years ago the trend was to project an icon as the mascot of a brand. But tell me, how many people can realistically achieve what an icon is capable of no matter what the potential is? We believe in a more 'real' approach and would like people to achieve. The world today is a melting pot of different youth cultures."

Cricket is a big focus area for Reebok's sub continental plans and it sponsors the Knight Riders IPL team. MS Dhoni, Yuvraj Singh and Harbhajan Singh sport the Reebok brand on their bats.

Prem started his career with the Indian pharmaceutical major Ranbaxy. But lack of experience in the sports retailing space did not stop him to add the requisite glitz to Reebok and take it forward from being a mere sports brand to a complete fashion brand.

All of Reebok's stores in India are franchisee-owned. And Prem says that they have taken great pains to deal with the accompanying trouble of maintaining brand consistency in such retail outlets. The company tries to always stay on top of new trends through product proliferation, brand extensions, segmentation and new marketing strategies.

Reebok's other brand Rockport seems to be getting the rough edge of the deal so far as expansion and even promotions are concerned. But Prem is quick to deny any insinuations to that effect and says that Rockport is for a comparatively older customer set and for those who pick up a brand for the self-goodness factor.

So what's Reebok India's next move? "India is changing and there is so much to work on, like the way mobile has evolved from a communication device to a fashion accessory, we want to bring a huge change to our industry." replies Prem.

Prem informs that globally, the focus of Reebok is in the area of women's fitness. "The female consumer is not 'owned' by anybody yet and we see an opportunity there. Also the company is working on men's fitness and training. And we will try and get close to the most popular sport according to the regions where we operate."

Prem continues, "We will be looking at cleaning up the business and getting our distribution right. Along with marketing and innovative products we need to have the right ammunition to execute our strategy. We need to have a focus and improve our business relationships and improve our products and concepts."