iima layman bros

8/3/2019 IIMA Layman Bros

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Fuelling passion into action

Lessons in Marketing Excellence 3

Team Layman Bros, IIM Ahmedabad


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Contents

About Reebok Current Trends Segmentation Societal factors Market Analysis Major issues Solution

Awareness Quality Improvement Financing

Measuring Impact


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Reebok

Positioning Celebrate individuality in sports & life

Purpose Empower global youth to fulfill their potential

Brand territory Have fun staying in shape


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Current Trends*

A growing need is being felt forbecoming/remaining Fit

Common options available for people ofdifferent age groups

Gymming, Walking, Yoga or any sportsactivity

Parents are supportive but only till theage of ~14 yrs. (class 9)

Youth influences fitness consciousness inParents

Increased participation in Status Sports -Tennis, Golf, etc.

No serious pursuit by most people

Cricket is still the most popular game inevery parameter while there has beenemergence of interest in surrogate sportslike, Tennis, Squash, Swimming, etc.

Focus has shifted Accessibility (paucity of time and facilities)

Quality (improper facilities, trainers)

Seriousness-->

Importance -->

Perceptual Mapping of Sports and Fitness*

Sports

Fitness

Sports N

Fitness N

* Obtained from the Qualitative

Surveying of Players, Coaches,Shop Owners, Gym trainers, etc.


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Segmentation

8-14 yrs 18*-25 yrs 25-35 yrs >35 yrs

Focus: Sports

Motivation:Competitions,Societal

recognition.

Influencers:Parents,Peers,Coach,Seniors

Focus: Sportsand FitnessMotivation:Show-off,Recreation,

Health andFitness

Influencers:Peers, Coach

Focus: Fitness& Sports.Motivation:Health, Generalfitness,

Recreation

Influencers:Peers, Coach

Focus: Fitness

Motivation:Health,Recreation,

Socializationneeds andGeneral fitness

Influencers:Peers,Children/Youth,

Doctors* a gap of 4 years given hardly anyone studying in India from std. X to std. XII indulges in sportsactivities seriously

Slicing through these three segments A small % of people whopursue sports seriously & rest for fun and rejuvenation


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Quantitative survey results

Whatkind offitnessactivity doyou

pursue ?,

Whatkind offitness

activity doyou

pursue ?,

Whatkind offitness

activity doyou

pursue ?,


pursue ?,


pursue ?,

What kind of fitness activitydo you pursue ?

Cricket

OtherSports

Gymming

Walking/Running

Other

Whatmadeyoustart

pursui

ng thi

activity ?,

Whatmadeyoustart

pursuing thi

activity ?,

Whatmadeyoustart

pursuing thiactivity ?,

Whatmadeyoustart

pursuing thisactivity ?,

Whatmadeyoustart

pursuing this

activity ?,

What made you start pursuingthis activity ?

Advertisements/MassMedia

Doctorssuggestion

Parental/Senior's Advice

SelfMotivation/Interest

Peer Advice


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Quantitative survey results

Whatkeepsyou

motivated forthese

sports/fitnessactiv

Whatkeepsyou

motivted fothese

sportsfitnesactiv

Whatkeeps

youmotivated forthese

sports/fitness

activ

Whatkeepsyou

motivated forthese

sports/fitnessactiv

What keeps you motivated for thesesports/fitness activities?

I have toimprove myplay

It keeps me ina good shape

It keeps mehealthy

It has becomeasocializing/recreationalactivity for me

Few InsightsSelf motivation is the most importantaspect in making a person pursuesportsFor most of the populace, even pursuitof sports is for a health purpose

Research indicates that mostly kidswho played a sport re likely to pursue itas adults for recreationPicking up a new sport after age of 20is unusual ( Except for status sportsTennis, Golf)Lack of infrastructure is majorimpediment for people who want to play

Most people if given an opportunity willpursue Gymming/fitness activity ratherthan sportsPeer advice and WOM is a veryeffective medium to get a person intosport/fitness


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Factors that influence sporting culture

Macro level factorsIncome, Culture, Awareness, Healthconsciousness, Promotion of sports, politicalimperatives

Community levelFacilities available, Neighborhood, Hostingmega sports events, Success in sporting events(effect varies from region to region)

Individual level (motivations)Influence of sports heroes, winning competitionsand social recognition, For Health & Fitness,Influence of peer group


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Market Analysis

Sports Retailingin India

Totalsportsprodu

ctsmarke

t(valuewis

Totalsports

products

market

(valuewis

Totalsportsprodu

ctsmarke

t(valuewis

Total sportsproducts market(value wise)*

Mark

etshare(branded

sports

Mark

etshare(brandedsports

Mark

etshare(branded

sports

Market

share(branded

sports

Market share *

Nike Reebok Adidas Puma, Lotto, others

Health & Fitness market in India

Current Size: Rs 2900 cr in 2009CAGR: 15%Regular work out: 1.5% of urban population0.1% of total populationThe global figure is 15-20% of total population

Indicates low penetration and huge potential

Sports wear industryIncludes footwear, apparel & accessoriesRs 5000cr in 2010.Expected to grow to Rs.12000cr by 2020Increased participation will lead tohigher growth figures


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Major issues in sports

Issues Impact Current actions Criticality

Lack of good coachesand physical trainers

Bad performance atinternational forumsLack of motivation at lowerlevels of sports & fitness

RIA in fitness.No specific programmes toenhance coach quality

HIGH

Inadequate sportsinfrastructure

No proper practicePrevents mass participation

Increased funding by govt.No improvement in grassroots

infrastructure

HIGH

Mismanagement ofsports bodies

No accountabilityPersonal fiefdom ofpoliticians

Few politicians booted out afterscamsIn general, political interferencein sports is still high

HIGH

Funds Sponsors,

Prize money

Sports cannot be a career

option

Corporate sponsorships are

growing at top levelEx: Mittal champions trust,Olympic Gold quest etc

MEDIUM

Education Syllabus Focus shifts away fromsports during ages 15-17Many young talented peoplestop playing

Goa state syllabus includessports marks.CBSE moving in the samedirection.

MEDIUM

Capability

issue

Capability

issue

Capacity

issue

Capacity

issue

Attitude

issue


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Plan objectives & timeline

Short term2011-14

Co-ordinate with other private entities to form a sports lobby Small scale local level initiatives Focus: On current market & strong areas in the top metros &

cities

MediumTerm 2014-

20

Use new sport events & leagues to actively involve populace Drive change in thinking and perception of sports by pushing

structural changes Focus: Leverage new structures & events to generate interest,

create awareness, reach and connect with a new audience

Long Term2020 &beyond

Make sports & fitness part of lifestyle of majority of Indians Elevate sports from status of a secondary activity Focus: Complete overhaul of current system, by incessant

lobbying & through private investment & PPP Involvement in sports down to Community & neighborhood level


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Short term 2011-14

Co ordination ProblemLack of co-ordination amongst the privateplayers -> Partner with like mindedcompanies (Nike, Coke, RIL, M&M)Create a sports lobby with other majorcompanies interested in the sectorUse FICCI Turf conferences to achieve this

Push for tax rebates on promoting sportsPush for PPP in sports infrastructure

Funding & ScholarshipsSubstantial prize money and recognition at city, regional& national levels in competitions-Can be directlysponsored by ReebokAppoint Reebok ambassadors in top metro schools& colleges, Best all- rounder in sports -> Immensevisibility & aspiration created at ground level in schools

Sports Equipment for Corporates /Schools at subsidisedrates

Coach Training WorkshopsExpand the Reebok Instructor Alliance program for Gym Trainers Coach quality plays ahuge role in motivating people continue fitness activitiesEducate coaches on possible career paths, conduct talks by international trainersEducate on business planning & encourage opening of new gyms

Train physical Education Teachers improved awareness in schools

Camps for non-traditional & adventure sportslike Rugby, bungee jumping, paragliding etc togenerate interestOffice goers Reached through office touch-points - Create trophies in each city forvarious sports, generates interest &involvement in office partner with othercorporates for logistics & spending

Use Ad clout for local media coverage to solve chickenand egg problem of lack of coverage & lack of

awareness@storeFlyers stressing on importance of sport & fitnessCollect mobile nos of customer send messagesfocusing on benefit of sports & fitnessSpread message through social network feeds

Government involvement is critical for any large scale change in the sporting system

Capability

improvement

Capacity

Improvement

Attitude

Improvement


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Medium term 2014-2020

Comprehensive evaluationGoa state has included a sports componentin its overall marksPush a similar system amongst CBSE, ICSE& IB schoolsCreate sports scholarship schemes long linesof NTSECreate a body along NCAA (Nationalcollegiate athletic association) of USA

Upcoming Professional Leagues The next big thing in Indian sportsF1 starting in October 2011 Expected to usher the motorsport era in IndiaElite football league of India (EFLI), Junior NBA, FIH hockey leagues starting in 2013Indian Tennis, rugby & baseball leagues in the pipelineLocal leagues like Karnataka premier league

Focus - Developing a die-hard regional fan culture around these teamsThe fans will be the torch bearers & WOM carriers for the team & the league

Will provide lucrative career options in a variety of sports Thus increasing serious pursuitAttractive nature of leagues -> higher viewership -> higher sponsorships. Thus creating an upward cycle for thevarious sports involved

Create Local HeroesServes as inspiration to people pursuing it professionally & creates awarenessNearness effect He will affect & inspire people more than a national heroFeature local sports heroes in OOH ads & social mediaAdds to mystique, creates curiosity factor & leads to information searching

Associate with teams & offer Reeboks marketing skills to achieve the above

Fitness FocusTie up with doctors association to improveconsciousness about fitnessTrain coaches to increase levels of quality, equipmentand knowledge.Focus on retention as people pass through to middleages -> increase skill levels in gyms for counselingGym level advertisements

A

ttitude&capacityImprovement

Capability

improvement


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Long term vision - 2020 & beyond

Sports as anational unifier

Host mega sporting events Olympics, world cups etc

Publicize world classathletic achievements

behind which the nationcomes together Leagues based on regional

teams create healthycompetition

Sports is currently (and canbe even more in the future)an escape for the lowerclasses to stardom creatinga psychological impacton the community

More Events + Morewinners = National pride

Sports as a careerchoice

Create a talent pipelinefrom the community level tothe national level setupnecessary infrastructure

Salaries, job assurances,training & other incentivesfor the sporting talents

Involve private sectorcorporates to make itappealing to the currentgeneration

Professionalize sports

bodies and appoint CEOsto run each of them Improve rural facilities to

Sports as alifestyle

As the current Gen Yreaches parenthood, anatural focus on sports fortheir kids

Community levelinfrastructure toencourage recreationalparticipation

Construct mega sportscomplexes (One proposednear Blor) make it adestination activity

Make fitness a necessaryactivity across age groupsthrough mass media,doctors, promotions etc

All these steps will lead to rise of sporting culture in India


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Business view

Product portfolio expansionExpand to the new category of sports which will be launchedFocus on sports but expand lifestyle portfolio for non professionalusersMarketing-Ad-Promotion: Higher Local ControlIncreased focus on local and other sports heroes, as loyalties areexpected to be highly region based

Create attachment with the newer generation at a young ageHigher control to managers for institutional sales and other localschool level promotionsVisibilityEnsuring appropriate visibility in the various outreach programsScholarships, sponsorships etcMake sports an umbrella positioning with separate marketing &communications for various sports

Product deepeningHighest level technology embedded into products of all sports toposition as pioneerIn addition to SEC A , the target would include SEC AB - lowerrange of shoes

Changes

required toconsolidateposition and

increasesales


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Measuring Impact

Short Term

Medium term

Long term

BusinessImpact

Measure awareness and perception in schools were ambassador andscholarship programs are implementedPsychological impact of direct marketing and social media campaignsEffectiveness in creating sports lobby No of companies brought on board

Increase in sports participation due to education system changesEfficacy of creating of fan culture around the teams in leaguesIncrease in visibility and brand recall for ReebokImpact of better training of coaches through RIA on customers

Participation levels amongst school students & professional pursuitGeneral perception and importance attached to sports amongst populaceEffectiveness of lobby in changing status quo in various areasSuccess in creating local heroes

Web analytics to understand impact of activity through social media & blogsMeasuring Reeboks brand perception with sports & purchase intentSales impact due to association with professional leaguesSales variance over macro-economic f& other regular actors


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