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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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reebok recent situation
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
reebok recent situation cont d
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
reebok recent situation cont d4
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.
revenue and net income
Revenue and Net Income

million $

million $

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

2005 8 adidas reebok combination announced
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
adidas reebok merge
Adidas-Reebok Merge

※ Brands will stay separate but complement each other.

adidas reebok deal benefits cautions
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.
reebok s ceo paul fireman
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
liberty national golf club
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