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Marketing 710 Reebok Research Invitation B Hee Gyu Oh Reebok Recent Situation World ’ s 3 rd largest maker of sporting goods – 1 st : Nike, 2 nd : Adidas

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Marketing 710

Reebok Research Invitation B

Hee Gyu Oh


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Reebok Recent Situation

  • World’s 3rd largest maker of sporting goods

    – 1st : Nike, 2nd : Adidas

  • Brands : Reebok, Rockport, Ralph Lauren, RLX shoes, CCM, Koho, Jofa, Reebok hockey equipment and apparel, Reebok Classic, G-UNIT, S. Carter street lifestyle shoes and apparel

  • Products : Athletic footwear, Apparel, and Accessories


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Reebok Recent Situation (cont’d)

  • Exclusive rights to manufacture and market both uniform and sideline apparel of :

    • The National Football League (NFL), since 2002

    • The National Basketball Association (NBA), since 2004

    • The Canadian Football League (CFL), since 2004

    • The National Hockey League (NHL), since 2004


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Reebok Recent Situation (cont’d)

  • Official shoe supplier to the NFL, NBA, and MLB (Major League Baseball)

  • Major sponsor of stars

    • Allen Iverson (NBA)

    • Andy Roddic, Venus Williams (Tennis)

    • 50 cent and Jay Z (rappers)

  • 2005 UEFA Champions Leagues - Winner Liverpool won the trophy wearing Reebok kit.


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Revenue and Net Income

million $

million $

※ Nike (May, 2005) Revenue = $13,739 million ; Net income = $1,211 million


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Adidas and Reebok ‘just do it’ targeting Nike

Adidas will acquire Reebok in a friendly takeover.

Reebok’s stock price jumped 30% in one day after Adidas announced the plans to buy Reebok

2005. 8 , Adidas-Reebok combination announced


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Adidas-Reebok Merge

※ Brands will stay separate but complement each other.


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Adidas-Reebok deal (benefits/cautions)

  • Benefits

    • More accessible to athletic events

    • Cover all the major sports categories

    • Expand Market Share

      → Adidas-Reebok 28% ; Nike 31%

    • Expected savings : $ 120 million within the first 3 years

      → Sales, marketing and distribution saving, layoff and operations.

  • Cautions

    • Must be prepared to handle the larger team of brands

    • Control the difference (Roots, strengths, culture), being careful not to lose their loyalty.


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Reebok’s CEO- Paul Fireman

  • One of Forbes 400 richest people in America.

  • Dropped out of Boston University.

  • Family man, married to his wife Phyllis for 33 years and raising three children in his hometown, Boston.

  • He made Reebok the top class sports goods industry with Nike.

  • His life’s passion : golf

    • 1980s, he experienced blackballing (Jewish)

    • 1992, opened Willowbend Golf Club (open membership)

    • Opened 9 more golf clubs : worth $ 2 billion


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Liberty National Golf Club

  • The world’s most expensive golf course.

  • Full sight of the Manhattan skyline and the Statue of Liberty

  • Spent 7 years and $ 130 million.

    • 160 acres, wasteland

  • Accessible by car, helicopter, and yacht.

  • No blackballing


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