In: Economics
Case study 2
Reebok is a sporting goods manufacturing company in the United Kingdom. It is one of the best-sellers among the top other finest sporting brands. The company‟s footwear, clothing, accessories, and sports equipment are in wide demand in many counties across the globe, and they are challengers for core branded companies for a quite span of time. For a long time, no competitor could compete with their products, and then came the Adidas Company of Germany as more challenging with more satisfactory and reasonably priced products to the customers. Though all the products are sporting products, there will be always various tastes and preferences in the minds of the customers. Reebok consumers like the way company‟s products are featured under various categories for different ages, ladies, men and children. Adidas carter the customers according to their income level and status.
Adidas has larger product line product than Reebok. Adidas Company is also very clear that they connect and engage with its customers as per their need and demand. Adidas sells a range of clothing items, varying from men's and women's t-shirts, jackets, hoodies, pants, and leggings. Adidas has many other business locations around the world such as Oman, India, Hong Kong, Toronto, US, England, Japan, Australia, and Spain. One of the main focuses of Adidas has always been football kits, and the associated equipment. Adidas remains a major company in the global supply of team kits for international association football teams and clubs. Adidas Performance was designed to maintain their devotion to the athlete; in comparison the Reebok Company has relatively less products than the giant Adidas Company. Thus the customers of Adidas were overwhelmed with the services and products of the second-largest best sporting manufacturing companies in the globe.
Question 2
(4 Marks–100 /125 words)
ii. Design a promotional mix for Rebook to increase their sales. (4 Marks–100 /125 words) iii. Suggest a pricing strategy for Reebok Company to attract the customers.
(2 Marks– 50 /75 words)
ANS
1 .The factors that is influencing the buying behaviour of the purchasers of Adidas company are the different range of product for different income group people,the adidas has the compititive quality with reebok which also influences their customers.Adidas have opened their product units in many countries and also their influence with the worldwide famous sport football have increased the interest of their buyer towards the brand.
2 .The promotional mix is the combination of 4 promotion activities that are public relations, advertising, sales promotion and personal selling , these activities may differ depending upon the market size of firm and their product lines.Currently Reebok can use advestising as it can associate with some public sports for advertising like adidas .Reebok can get associated with cricket.It can also work on sales promotion by giving discount offers to get more promotion in short span of time.
The pricing strategy of the reebok should be according to income level of different customers if it had to compete with Adidas.It should also produce medium range of shoes which are affordable to all along with pricy shoes which are more authentic. This pricing strategy would help reebok to generate more profits.