COMPARATIVE STUDY BETWEEN FILA AND REEBOK

1.1 OVERVIEW OF BRANDED SHOE INDUSTRY

The branded shoes market consists of the total revenues generated through the sale of
all type of mens, womens and childrens shoes. The global figure includes the
Americas, Asia Pacific and Europe. Americas consist of Brazil, Canada, Mexico and
US, while Asia pacific consist of Australia, China, India and Japan. Europe comprises
of Czech Republic, France, Denmark, and Germany etc.

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1.2 GLOBAL SCENARIO

Branded shoes is huge and increasingly diversified business driven by a host of

demographic lifestyle, and fashion trends. It would not be exaggerating to say that
globally the branded shoes industry is having expanding market rather it is axiomatic.
As the world population increases so the living standards of people rise thus increasing
the demand of branded shoes. According to SATRA (Shoe and allied trade research
association, UK) the global trend of branded shoes industry are as follows.

Top branded shoe companies :

1. Nike
Nike is an American company founded in 1964 as Blue Ribbon Sports. It changed its
name in 1978 to Nike, who is the Greek goddess of victory. Its Just Do It slogan and
swoosh logo are some of the most recognizable marketing items in the world today. It
is considered to be the leading supplier of athletic shoes and apparel. Its first endorser
was Ilie Nastase, a tennis star back in the 1970s from Romania. It also had legendary
track athletes in its roster, including Steve Prefontaine, Carl Lewis, Jackie JoynerKersee and Sebastian Coe. The companys signing of Michael Jordan, however,
proved to be its biggest coup.
2. Adidas
Adolf Dassler established Adidas in 1948 in Germany. It can trace its roots, however,
to 1924 when the Gebruder Dassler Schuhfabrik was founded by Adolf and his
brother, Rudolf. The two split up in 1949, however, with Rudolf establishing Puma.
The basic design of Adidas is the three parallel bars, which is also incorporated in the
companys logo. Its endorsers include legendary basketball players like Pete Maravich,
Kareem Abdul-Jabbar, Jerry West, James Worthy, John Havlicek and Elgin Baylor.
Current athletes on its roster include Lionel Messi, Kaka, Lucas Moura, David
Beckham, Derrick Rose and Dwight Howard.

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3. Reebok
The company was founded in 1895 as J.W. Foster and Sons in England. It came from a
desire by the founder to create a spiked running shoe for his sons. In 1958, his
grandsons, Joe and Jeff, renamed the company as Reebok, which is the Afrikaan
spelling of rhebok, a type of antelope or gazelle native to the continent. Paul Fireman
brought it to the United States in 1979 after seeing a pair in an international trade
show. Endorsers include Eli Manning, Phillip Rivers, Peyton Manning, Tim Lincecum
and Justin Verlander. Reebok has been a subsidiary of Adidas since 2005.

4.Puma
Following the disagreement between Adolf and Rudolf Dassler, Adolf formed Adidas
in 1948 while Rudolf countered with Ruda. He later changed it to Puma.
The brothers had hit a goldmine before the split when they convinced Jesse Owens to
wear their shoes in the 1936 Summer Olympics in Berlin. Afterwards, the brothers
started to grow apart. Both became members of the Nazi party, but Rudolf blamed his
brother for his arrest by American soldiers. The two brands became bitter rivals and
divided their town. Even their sons got involved after Puma violated an agreement not
to outdo each other in trying to get Peles endorsement in the 1970 World Cup. Its
other endorsers included Eusebio, Johan Cruyff, Joe Namath and Walt Frazier.

5. Converse
Marquis Mills Converse established the company in 1908 as the Converse Rubber
Shoe Company. In 1915, it began making tennis shoes. A company milestone occurred
in 1917 when a basketball player named Charles H. Taylor walked into its office
because of sore feet. He designed a high-top sneaker that became the classic we know
today as Chuck Taylor. It was the shoe worn by Wilt Chamberlain when he scored
100 points in an NBA game in 1962. Michael Jordan was also wearing a Converse
when he converted the winning basket in the 1982 NCAA finals. It was the official
shoes of the NBA for a long time, with legends like Magic Johnson, Larry Bird and
Julius Erving all wearing it. Sadly, it has now disappeared from the league. The last
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player to wear a Converse on the court was Udonis Haslem, but he switched to LiNing in November 2012. Nike has owned Converse since 2003 after a $305 million
buyout.

6. Fila
Fila Ltd. was established in 1911 in Italy. It is known for its logo that features its name
in snakelike letters. It used to be endorsed by Boris Becker and Bjorn Borg. It
collapsed in 2003, however, forcing it to sell to a hedge fund company. Fila Korea,
however, was a distinct company and it bought all the rights to the company in 2007.

7. K-Swiss
The brothers Art and Ernie Brunner of Switzerland founded k-Swiss in Los Angeles in
1966. It was the first company to create leather tennis shoes. The white stripe on white
leather design was considered a classic, so much so that Steven Nichols bought out the
company in 1986. Popularity further increased with their Put Your Spin on It
campaign that allowed users to customize the stripes color.

8. Asics
It is an abbreviation for anima sana in corpore sano, which is Latin for a healthy soul
in a healthy body. It was established in Japan in 1949 as Panmure Co. Ltd. Endorsers
include Newcastle, Sunderland, Leeds and Aston Villa football teams.

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1.3 INDIAN SCENARIO

The Branded shoes Industry is a significant chunk of the Leather industry in India.
India ranks second among the branded shoes producing countries next to China. The
industry is labour intensive and is concentrated in the small and cottage industry
sectors. While leather shoes and uppers are concentrated in large-scale units, the
sandals and chappals are produced in the household and cottage sector. India produces
more of gents branded shoes while the worlds major production is in ladies branded
shoes. In the case of chappals and sandals, use of non-leather material is used to
manufacture these in the domestic market.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike,
Reebok, Ecco, Deichmann, Elefanten, St Michaels, fila, Hasley, Salamander and
Colehaan are manufactured under license in India. Besides, many global retail chains
seeking quality products at competitive prices are actively sourcing branded shoes
from India.

Top branded shoe companies in India:

Major companies such as Bata, Reliance Footprint, and Liberty have been increasing
their stores in a frenetic pace in the last couple of years. They have also started to open
largest outlets in the smaller locations.
The biggest retailer of shoes in India is Bata India. Rajeev Gopalakrishnan, the
organizations MD, has stated that the greater the competition has led to the companies
to improve their offering at a quicker pace compare to before.
At present Bata and Liberty are opening 100 stores on a yearly basis. In the last 3 years
Metro shoes have opened approximately 200 stores, while Louis Philippe has come up
with 20 to 25 outlets in that time. Reliance footprint has been opening around 9 stores
per month and for Woodland the yearly rate is within 60 to 70.

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Following are the leading shoe brands of India:

1. Reebok

Reebok is one of the leading global brands for lifestyle and sports products. It has a
commendable tradition and is one of the most authoritative brands in this domain. The
brand is focused on creating products, which show the wish and originality needed to
constantly come up with new challenges for the established norms. Its shoes are
available in the following categories:

Mens

Girls

Womens

Sports

Boys

Classics

2.Bata

Bata India is the biggest maker and retailer of shoes in the country and belongs to the
Bata Shoe Organization. It was established during 1931 as Bata Shoe Company Private
Limited. Its Batanagar manufacturing facility is also the first of its kind in India to
have been given the ISO: 9001 certification. Its major product categories are:

Women

Kids

Men

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3.Nike

Nike is a global footwear, accessories, apparel, services, and equipment brand that is
based at Portland, Oregon. It is the global leader in athletic apparel and footwear as
well as sports equipment. Its revenue is presently US$ 24.1 billion and it has at least 44
thousand employees around the world. Its present worth is approximately US$ 10.7
billion making it the top sports business brand in that regard. It is a Fortune 500
company as well.

Nike offers shoes in the following categories:

Men

Mens training

Women

Womens training

Kids

Golf

Running

Skateboarding

Basketball

Snowboarding

Football

Surfing

Soccer

Tennis

4.Adidas

Adidas is one of the most popular shoe brands in India and its sneakers, fashion
oriented, and sports shoes are highly sought after. The company was founded by
Dassler brothers Adi and Rudolph who came up with the first soccer shoes that had
studs.

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Its shoes are available in the following categories and more:

Women

Adventure

Men

Outdoor

Girls

Sneakers/canvas

Boys

Sandals

Casual

Slippers

Sports

Chappals/sandals

5. Liberty

Liberty Shoes has been in the business for more than 5 decades and is globally known.
At present its yearly revenue is at least INR 600 crore and it is one of the leading 5
global makers of leather footwear. It operates in 25 countries including France,
Germany, and Italy and has 150 distributors, at least 6000 multi brand showrooms, and
400 exclusive outlets around the world. It has also received the ISO 9001:2000 official
recognition. Its shoes are available in the following ranges:

Men

Boys

Women

Girls

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6. Woodland

Woodland is owned by Aero Group that has been in the business of outdoor shoes
since the early 50s. The brand was introduced during 1992. At present, the brand has
350 exclusive outlets across the world and is present in at least 3000 multi brand stores
in several countries.

The major product ranges of Woodland may be enumerated as below:

Boots

Casual

Shoes

Womens

Sandals

Climbing

Slippers

Trekking

Mens

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CUSTOMER PERCEPTION ABOUT INDIAN BRANDED

SHOE

India is on the verge of a retail boom fuelled by fast evolving lifestyles and
behavioural changes towards shopping. With changing retail landscape, Indian
footwear industry is set for a phenomenal growth in future1. The Indian footwear
market recorded total revenues of $4.10 billion in 2009, representing a Compound
Annual Growth Rate (CAGR) of 9.3% for the period spanning 2005-20092. It is
forecasted to grow with a CAGR of 9.4% in 2009-2014.

Nature of the Indian Footwear Market

Indian footwear market is Brand driven and Organised players dominate the sales.
Category motivators identified are namely price, looks, brand name, style, variety and
durability. The Indian Footwear market can be segmented as shown in Exhibit 1
below:

Exhibit 1 Indian Footwear Market Segments by Price

In terms of usage, Sport shoes are the largest selling sub-category. Attitude towards
specific brands plays a very important role in customer decision making in this subcategory. Exhibit 2 shows the market segmentation based on product use.

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Exhibit 2 Indian Footwear Market Segments by Usage

Bata, incorporated in 1931, is a household name in India though headquartered in

Lausanne, Switzerland. Bata has a nation-wide presence and has strong attitudes
associated with it. Bata enjoys a top-of-the-mind recall in formal wear shoes category
that has been through intergenerational classical conditioning. Bata is a big player in
footwear retail market housing numerous brands like Bata, Comfit, Marie Claire, Hush
Puppies etc.

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Indias footwear retail Entry: Opportunities, Issues and

Challenges
India is the second largest footwear manufacturer in the world, next only to china.
Nearly 58 percent of the industry, which is by and large labour intensive and
concentrated in the small and cottage industry, which is by and large labour intensive
and concentrated in the small and cottage industry sectors, remains unbranded.
However, as part of its effort to play a lead role in the global trade, the Indian leader
industry is now focusing on key deliverable of innovation design, state of the art
production technology and unfailing delivery schedules.

Customer Segments
Retail footwear segment in Indian is very price sensitive and has been steadily growing
over the year. Major part of the demand is met by the unorganized sector and still there
is a shortfall of 300 million pairs. Branded shoe market only account for 20% of the
entire market. While international brands largely dominate the higher end of the
spectrum, the lower end of the market is dominated by home-grown players as well as
unorganized players. While men's footwear is the biggest target category (contributing
almost 48%), children's (11%) and women's lifestyle footwear (41%) is not behind in
the race.

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Segment wise classification of price ranges in the mens footwear segments:

Segment wise classification of women footwear segment:

The kids footwear segment is one of the fastest growing segments in India. The Indian
kids footwear segment is highly fragmented and dominated by the unorganised sector.
The branded kids footwear segment has a big card to play as India has the worlds
largest child population. The overall kids retail segment has a robust margin of 20
25 % which is huge potential opportunities for organised branded retail footwear
players. S&M is one of the players who have ventured into kids wear segment which
has 27 exclusive outlets through franchise model. S&M sees a huge potential with age
group of 3 16 years kids segment in the domestic market after the economic
slowdown in the international market that hit the companys revenues has now been
targeting the growing consumers market of India. It has set up store in store format for

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optimised revenue flow. The store in store format of business model has been the trend
among many retail footwear players in India.
Disney kids is another international brand which has forayed into exclusive kids shoes
in India and has targeted kids within the age group of 5-10 years. Disney shoes have a
tie-up with Sierra Industrial Enterprises to manufacture and market Disney shoes for
kids in India. Disney aims to become the market leader in the kids footwear segment
in India.
The Disney shoe collection will include boots, sandals, slippers and sports shoes for
boys and girls. The footwears has a price range from Rs 150 Rs 850. Disney has
targeted malls across the country and in prominent chain stores such as Lifestyle, Loft,
Shoppers Stop, Pantaloon and Central.
Bata is one of the oldest brands which have a more than 50% share in the executive
segment. As the young Indian executive class matures in terms of quality, design and
brand, the preference will be more towards branded footwear
and the growth is expected to be high in this segment with the migration of people
from villages to cities for better career and profession. The footwear retail segment is
currently one of the most organised sectors within the retail domain. However, this is
purely due to the highly organised nature of the mens footwear segment. The
womens category is largely unorganised, in fact close to 95% of the category is
unorganised. With respect to the rest of the world, this is an anomaly as the womens
category is majorly organised and forms a big chunk of the market. Thus for us as
retailers in the womens footwear category, the market is still largely untapped and
hence a big opportunity for growth. At present, almost all of the organised retailers in
the womens footwear category are located in the metros and Tier I cities and towns.
The Tier II and Tier III towns have over the last few years seen a spurt in income
driven by the service industry boom. Hence these towns definitely are a potential
target.
Major challenges in running domestic retail:
a) Retail presence: till recently, most companies invested in own stores as the means
to grow and expand. With commercial rents increasing in last few years, capital
required for expansions was a bottleneck.
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b) Credit Management: Brands that had no local presence, but preferred the thirdparty retail route had to face the challenge of receivables, often the credit period as
high as 120 days.
c) Brand: Many of the leather firms are SMEs, have great experience in trading and
vendor management, but completely lack brand building experience.

Even when

attempts were made, they lacked focus and consistent efforts, thereby diluting the
impact.
d)

Low IT investment:

Except the major leather manufacturers, none of the

companies had an ERP connecting POS data so as to effectively manage inventories.

It was not common to have round the year discount offerings to get over the
inventories.

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2 FILA

2.1About FILA:

:
When the Fila brothers first opened shop in 1911 in Biella, a small town in the
foothills of northern Italy, they had no idea how far their legacy would travel.
Originally in the business of creating quality textiles for local townspeople, the
brothers sought to produce fabrics that combined luxury, art and utility, drawing
inspiration from their homeland to create product as exquisitely textured and evocative
as the Italian landscape: the austerity of the Alps, the fluidity of the hills and the
boldness of the Mediterranean coast. Today, as we celebrate the 102nd anniversary of
Fila, we are proud to say that their vision lives on in our company. From the craggy
peaks of Mount Everest to the illustrious lawns of Wimbledon, the name Fila echoes
an unmistakable legacy of excellence, born through decades of innovation and
unswerving dedication to provide premium sportswear crafted to be exceptional as its
wearer.
The story of Fila's transformation into a leading global designer of high-end sportswear
has been one of continual evolution driven by a philosophy of innovation that lies at
the heart of our most successful designs. In 1923, the brothers officially established the
expanding family-run textile business as a high-quality knitwear manufacturing
company, entering into a limited partnership named Maglficio Biellese. Through the
years, the business grew beyond the borders of Biella to become a well-known quality
knitwear producer for Italy. In 1942, the company merged with the Fratelli Fila
company, and by 1972 the company had sales of over one billion lire and a total
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workforce of more than 250 people. Wishing to further expand the company,
Giansevero Fila hired Enrico Frachey as the managing director of the firm in 1968.
Frachey shared Fila's vision and it was his creativity and managerial resourcefulness
that ultimately transformed Fila into a global sportswear brand.
The 20th century saw a new form of individual expression rise to international
prominence: sports - and particularly tennis - were becoming the epitome of grace,
style and an example of the robust vivacity of the human spirit. As of the company
prepared for its bold debut into the sportswear industry, Frachey tasked two men with
ensuring its success: the innovative designer Pier Luigi Rolando, the artist behind our
most iconic designs, and Alessandro Galliano, the superbly knowledgeable
engineering director. Inspired by Frachey's own climbs on the cliffs near Biella,
Rolando and Galliano began their work with the understanding that sport is life
expressed through motion, and that sportswear must complement, not overpower, the
athlete. They set to work creating fabric designed to mirror the movements of the
athletes themselves, adhering smoothly to the body like a second skin yet providing a
sense of total freedom.
The product of this collaboration was our premiere outerwear collection, which
debuted in 1972. Rolando's designs, utilizing wool and cashmere in novel ways,
created a line that quickly became renowned for its seamless combination of grace and
vigor. The following year, our name was firmly established through the sports apparel
industry with the introduction of the now legendary "White Line" Collection. Named
as a respectfully irreverent jab at the traditional product lines and the ubiquitous
presence of all-white garments that had long dominated tennis apparel, the White Line
Collection was a fusion of the provocative and exemplary. The Collection,
aesthetically astonishing in its novel design and unconventional use of vibrant colors,
yet beautifully simple in its effectiveness and function, immediately took the world by
storm. The premiere collection marked the dawn of a new era, not just in Fila's history,
but in the sportswear industry as a whole. While others saw contradiction, Fila became
the brand that catered both to the exceptional athlete and the cosmopolitan individual,
ever conscious of the latest and boldest innovations in fashion. The White Line
Collection made a statement as audacious and respectfully irreverent as its new

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designs: Classic doesn't have to mean conservative, and timeless designs can still be
contemporary.
Fila has enjoyed a special relationship with remarkable athletes, pioneers marked as
much by indomitable passion as incomparable performance. Beginning with our debut
on the courts with tennis greats Adriano Panatta, Paolo Bertolucci and the
incomparable Bjorn Borg, we have had the fortune of helping extraordinary
individuals accomplish some of history's most iconic sports achievements. We
followed Borg as he ascended to the pinnacle of sports history, the F-Box logo proudly
displayed on his signature polo and headband, winning five consecutive victories at
Wimbledon and firmly establishing his legacy as tennis' most dominant and unique
player, both in terms of technique and style. In 1986, when Reinhold Messner reached
the treacherous summit of Everest, fueled by the spirit of adventure and the
determination to be the first to scale the titan without the aid of additional oxygen, he
wore high-tech mountain gear designed by Fila. Thirsting for more, he proceeded to
scale 13 peaks of the Himalayas, leaving his indelible mark on the history of
mountaineering and raising Fila and iconic F-Box logo proudly to the highest peaks of
the world. We slid down the slopes with Ingemar Stenmark in his pursuit of 86 World
Cup titles. We graced the greens of British Opens and two Masters Titles with Tom
Watson, skirted the frosty trails of Italy with Alberto Tomba and arched triumphant on
the shoulders of Monica Seles and Guillermo Vilas. And we were there in 2009 when
Svetlana Kuznetsoza won the French Open.
Fila has been especially proud to support Kim Clijsters, first as she made history by
coming out of an eighteen month retirement to win back to back US Opens in 2009
and 2010, becoming only the second mother to win a Grand Slam in the Open era and
following in the footsteps of former Fila athlete and mother Evonne GoolagongCawley, who was the first. In 2011, our 100th anniversary year, Kim started out
strong, winning the 2011 Australian Open, wearing a replica of one of GoolagongCawley's iconic outfits from the early 80's. With the announcement of Clijsters
retirement after the 2012 US Open, Fila designed a special commemorative Trophy
Collection for Clijsters to wear at the last Grand Slam tournaments of her illustrious
tennis career. Fila unveiled a special patriotic performance tennis apparel collection, in
August 2012, which was worn exclusively by Fila athletes representing their countries
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on the courts of the All England Lawn Tennis and Croquet Club during the London
Games. Fila also outfitted the South Korean and Hong Kong delegations at the London
Games.
In addition, Fila continues event sponsorships of the BNP Paribas Open in Indian
Wells, California, the Sony Open in Miami, Florida and the Hall of Fame Tennis
Championships in Newport, Rhode Island, the Porsche Tennis Grand Prix and the
BMW Open in Germany, as well as partnerships with the Van der Meer Tennis
Academy in Hilton Head, South Carolina, the John Newcombe Tennis Ranch in Texas
and the Junior Tennis Champions Center.

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2.2 MARKETING MIX

1) Product:
Fila has main 3 products
a. Athletic shoes
b. Clothing
c. Accessories
Fila manufactures all kind of shoes as well as slippers and sandals.
The main product of Fila is Athletic shoes.
.The men's Fila line of sportswear includes clothing for such sports as tennis, running,
cross training, basketball, golf, swimming, and Fila's own line of clothing.
The women's Fila line of sportswear includes clothing for such sports as tennis,
running, cross training, golf, swimming, and Fila's own line of vintage clothing.
Fila has everyday footwear for children of all ages, from infants to youth.

2) Price:
The recent tough overall economic scenario, with the rupee to dollar exchange rate at
an all-time high, is affecting most sportswear brands in India, including Fila. Most of
the components that go into the making of branded international shoes are imported,
which have forced players like Fila to go for a price hike on its fall-winter product
lines.
Rajiv Bajaj CEO of Fila India, reveals that the challenging economic environment is
affecting the business, but we have taken that in our stride and moved on. But since
the company is still in a brand-building phase, it is not planning to pass on all the cost
to consumers, and is looking at working around its sourcing pattern to stave off cost
pressures. The Fila sportswear products prices range from Rs.1,700 to Rs.5,000. The
apparel range starts from Rs.700 and goes up to Rs.4000, while the most popular
accessory bags start at Rs.999 and go up to Rs.1,999. Footwear contributes the lions
share of its revenue at 70%.
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PRODUCT RANGE

Fila Orlem Running Shoes Rs.1328

Fila Diablo Tennis Sneakers Rs. 1608

Fila UltraLite Training Shoes Rs. 2799

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Fila Adrine Running Shoe Rs. 2999

Fila Shake N Bake Running Shoes Rs. 3399

Fila Memory Aerosprinter Running Shoes Rs.3999

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3) Place:
Filas competition is intense with the likes of Adidas, Nike, Reebok, Bata and Puma
calling the shots. Also ruling the roost are many leading domestic brands like Liberty,
Woodland, Sreeleathers, all of which have been growing their competence and trying
to grab a bigger pie in the regions they dominate. In such a crowded market Italian
brand Fila made a quite entry in India three years ago, and has since been trying to find
its feet in a tough marketplace.
CEO Bajaj informs that the aim is to reach 100 exclusive stores across cities be it
metros, mini-metros, and tier 2 and tier 3 cities, over the next three years. Fila will also
ramp up its store presence from the existing 1,800 locations to over 2,500 stores during
this period.

4) Promotion:
The company is trying to tap youths in the 18-35 years category, and to sharpen its
appeal in its TG it has signed on swashbuckling cricketer Virender Sehwag as its brand
ambassador for the next three years. Sehwags association is a good fit for Fila, as his
fan following is very high among the target audience we are looking at youths in the
age group 18-35 years in the metros and tier 2 and tier 3 cities, says Bajaj. The
company also sponsors the Mohan Bagan soccer team and is trying to position itself as
sportswear brand with a lifestyle angle to it, more on the lines of Puma, which has
courted widespread success in India recently. For its marketing operations, Fila will be
using print, TV and online media for advertising (the popular youth mediums), and
plans to have TVCs featuring brand ambassador Virender Sehwag. Virender Sehwag
Fila's first ever Indian brand ambassador

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2.3 FILA Competitors

The Shoe Industry consists of a multitude of footwear manufacturers, wholesalers, and

retailers. The major wholesalers in the U.S. market are owners of a brand name and
typically source their shoes from independent manufacturers. The retail segment of the
industry ranges from owners of large multinational chains to small local businesses.
Many shoe companies operate in both the retail and wholesale arenas. Shoe companies
covered by Value Line generally adhere to the standard industrial page format.

Competitive Landscape
Taken as a whole, the Shoe Industry could be described as mature. However, barriers
to entry are far from insurmountable. Since demand is largely driven by fashion and
demographics, newcomers with a hot product may thrive at the expense of a fading
rival. Indeed, the profitability of individual companies depends on their ability to
design attractive footwear lines and remain at the forefront of consumers'
consciousness.
There are three major product categories within the Shoe Industry and the dynamics of
each may differ. The athletic shoe segment, which makes up about 30% of footwear
sales, is highly concentrated, as the largest companies comprise a vast majority of the
market share. Two players (Nike and adidas) dominate this category, with the giants
slugging it out over sponsorship contracts with star athletes and snuffing out the
competition using their economies of scale in distribution and marketing. Men's and
women's casual and dress shoes make up about 40% of the market (15% men's and
25% women's, respectively). The companies within these categories tend to be smaller
than their athletic counterparts and compete on the basis of superior design. Thus, the
market for men's and women's shoes is much more fragmented, consisting of a myriad
of bit players. Women's shoemakers, in particular, must be lean and flexible to meet
the changing tastes of their consumers. Demand here can be fairly cyclical, but the ebb
and flow of performance can be attributed more to the individual product portfolio
rather than macroeconomic factors. The economy does play a role in demand, though,
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particularly for products that are more up-market. The remaining 30% is comprised of
various niche product categories and boom-or-bust novelty designs.

The major competitors of fila are Nike, Adidas, Reebok and Puma.

This merger is indeed a success which has achieved significant sales growth. Merger
of Adidas & Reebok complement each other in competing with their competitors,
Nike; and is more cost efficient and beneficiary to both brands with Reeboks strong
presence in US market and the global recognition of Adidas.

Players :

Nike

Adidas

Reebok

Bata

Liberty

Puma

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2.4 Logo Of FILA

DESIGN ELEMENTS OF FILA LOGO

The Fila logo is one of the most popular logos ever created. It has been worn by many
of the worlds best athletes a fact that significantly strengthens the brand internally
and externally.

Shape of the Fila Logo:

The present Fila logo remains strikingly memorable, largely due to the cleverly artistic
treatment of the letter F. The symbol comprises of snakelike letters which give it a
highly futuristic and elegant look.

Color of the Fila Logo:

The red bar makes the initial unique in the Fila logo, and represents vitality, vigor and
passion. On the other hand, the blue color represent trustworthiness and reliability of
the brand.

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3 Reebok
3.1 ABOUT REEBOK

1890-1930's
Reebok's United Kingdom-based ancestor company was founded for one of the best
reasons possible: athletes wanted to run faster. So, in the 1890s, Joseph William Foster
made some of the first known running shoes with spikes in them. By 1895, he was in
business making shoes by hand for top runners; and before long his fledgling
company, J.W. Foster and Sons, developed an international clientele of distinguished
athletes. The family-owned business proudly made the running shoes worn in the 1924
Summer Games by the athletes celebrated in the film "Chariots of Fire."

1950-1980
In 1958, two of the founder's grandsons started a companion company that came to be
known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an
outdoor sporting goods distributorship, spotted Reebok shoes at an international trade
show. He negotiated for the North American distribution license and introduced three
running shoes in the U.S. that year. At $60, they were the most expensive running
shoes on the market.

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1980's
By 1981, Reebok's sales exceeded $1.5 million, but a dramatic move was planned for
the next year. In 1982, Reebok introduced the first athletic shoe designed especially for
women; a shoe for a hot new fitness exercise called aerobic dance. The shoe was called
the Freestyle, and with it Reebok anticipated and encouraged three major trends that
transformed the athletic footwear industry: the aerobic exercise movement, the influx
of women into sports and exercise and the acceptance of well-designed athletic
footwear by adults for street and casual wear. Explosive growth followed, which
Reebok fueled with new product categories, making Reebok an industry leader.
In the midst of surging sales in 1985, Reebok completed its initial public offering
(stock symbol is NYSE: RBK). A year later, Reebok made its first strategic
acquisition, The Rockport Company. Rockport was a pioneer in using advanced
materials and technologies in traditional shoes and the first company to engineer
walking comfort in all types of dress and casual shoes. In the late 1980s, Reebok began
an aggressive expansion into overseas markets and Reebok products are now available
in more than 170 countries and are sold through a network of independent and Reebokowned distributors.
Creating innovative products that generate excitement in the marketplace has been a
central corporate strategy ever since Reebok introduced the Freestyle. In the late
1980s, a particularly productive period began with The Pump technology and
continues today, with breakthrough concepts and technologies for numerous sports and
fitness activities.

1990's
In 1992, Reebok began a transition from a company identified principally with fitness
and exercise to one equally involved in sports by creating several new footwear and
apparel products for football, baseball, soccer, track and field and other sports. That
same year, Reebok began its partnership with golfer Greg Norman, resulting in the
creation of The Greg Norman Collection.

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In the late 1990s, Reebok made a strategic commitment to align its brand with a select
few of the worlds most talented, exciting and cutting-edge athletes. Since then, the
company has focused on those athletes who represent the top echelon of sports and
fitness.

1999-2000
In 1999-2000, Reebok and the National Football League announced an exclusive
partnership that serves as a foundation of the NFLs consumer products business. The
NFL granted a long-term exclusive license to Reebok beginning in the 2002 NFL
season to manufacture market and sell NFL licensed merchandise for all 32 NFL
teams. The license includes on-field uniforms, sideline apparel, practice apparel and an
NFL-branded footwear and apparel collection.

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3.2 MARKETING MIX

1) Product:
Reebok offers a wide range of footwear, clothing and accessories for both men and
women in the footwear product mix it Athletic, casual and court in a colour range like
black, brown, grey, white, blue pink. The footwear mix is offered both in men and
women.
The Reebok Brand focuses on 3 product lines
1. Performance and classic
2. Product line features street footwear
3. Appearl and accessories

Reebok for Men:

Reebok offers a wide variety of footwear for the Men. It constantly upgrades its shoes
with new Comfort levels and offers in various designs, colours, sizes and prices.

The various footwear from Reebok are:

Reebok swing, Reebok cover point, Reebok sweep, Reebok Verona, Dhoni
Trainer, Smooth fit select ride, Hex ride radiate SF, Reebok supreme.

Reebok for Women:

Reebok offers a wide range of women footwear. Reebok offers: Premier kfg, Premier
road plus, Verona, Hexride ready, Jungle low, Rang de Basanti, Rangela,
Swades,Black, Satyam Shivam Sundaram, Cirque du solei boot, Easy tone flips, Easy
tone go outside

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2) Price:
The prices of goods sold at Reebok.com are comparable to those sold by their retail
partners, so as not to take away sales and revenues from their traditional channel
partners. Reeboks pricing is designed to be competitive to the other fashion shoe .
Reebok as a brand commands high premiums.Reeboks pricing strategy makes use of
vertical integration in pricing wherein they own participants at differing channel levels
or take part in more than one channel level operations. This can control costs and
influence product pricing.
Product Range:

Reebok Extreme Speed Lp Running Shoes Rs.1999

Reebok Round Town Lp Running Shoes Rs.2299

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Reebok Pacific Run Lp Running Shoes Rs. 2999

Reebok Royal Cljogger Running Shoes Rs.3999

Reebok Runtone Plus Encyst 2.0 Running Shoes Rs.8999

Reebok Pr Trinity Kfs Lp Running Shoes Rs.9999

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3) Place:

Reebok shoes are carried by multi-brand stores and the exclusive Reebok stores across
the globe. Reebok sells its product to about 20,000 retail accounts in almost 200
countries around the world. In the international markets, Reebok sells its products
through independent distributors ,licensees and subsidiaries. It could be established in
Pondicherry to the urban areas as making it available in showrooms and outlets.

4) Promotion:
Reebok provides great deals on quality footwear, apparel, and fitness equipment for
women, men, and kids. Reebok sports and lifestyle products are built on commitment
to creativity and the desire to constantly challenge the status. The company uses
various promotional tools to bring awareness among its customers. It offers discounts,
vouchers, coupons and customer made sneakers on their products. Apart from this,
there are celebrity end or segments, road shows, sponsorship events, television
commercials, prints ads, billboards, alliance events. Reebok had separated 15% of its
sales for its advertising and promotion activities.

Fitness Brand Reebok has roped in Bollywood beauty Nargis Fakhri as their new
fitness brand ambassador for its all new womens category Studio. Reebok will
redefine the brand through focusing on apparels, trainers for dance, aerobics, and yoga.
Speaking about this association Adidas Group India Managing Director Erick Haskell
said that Reebok is dedicated on making fitness ambitious and fun and Nargis Fakhri is
the perfect epitome for this purpose. He is optimistic that with this brand Reebok will
jump to the next level. Reebok will soon launch a campaign with Nargis, which will
showcase the beautiful actress/talents dancing, & fitness skills as well.

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Nargis Fakhri Reeboks new fitness brand ambassador

Media vehicles:-

Reebok uses various media tools to promote its brand and create awareness
about the products. Reebok uses television commercials, print ads, billboards, online
advertising, sponsorship events and various advertising campaigns for its promotion.

Print Media Advertising:Print Media Advertising consists of newspapers and Magazines. It also
includes outdoor bill boards, transit posters, the yellow pages, and direct mail.

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Television Media
Reebok had joined hands with various Television channels for its commercials.
Reebok commercials aired during NBA Basketball games, TNT basketball
games, ESPN basketball games and ESPNs Sports Centre.

Reebok had enrolled various celebrities both from athletic and non-athletic
background for its television commercials. The various ad campaigns were
started for every launch of their new products. Time to time new commercials
aired on TV. Several tie-ups were made with different television channels for
its advertising.

Internet Advertising

Reebok.com sells the same products on their web site as they do in the stores,
providing the users more ways of getting what they want. Reebok.com has not
done much to promote its web site, but they do put their web site address at the
bottom of all their television commercials and print advertisements. With
Reebok.com being international, the marketing message will have to be
localized and "the choice of offline media will be determined on a country-to-country
basis.

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3.3 Competitors of Reebok

Reebok faces the heat from brands like Nike, Puma and Fila etc.
Branded shoe market is very competitive these days and everyone wants to survive and
gain more profit and goodwill.

Top competitor of Reebok are :

Nike
Fila
Puma

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3.4 Logo History

The Reebok logo holds a unique place in sports world and is undoubtedly among the
most popular apparel logos ever created. The original Reebok logo depicts the Union
Jack, portraying the companys humble beginnings in Bolton, England in 1895. In
1986,Reebok unveiled a second emblem, often termed as the vector. The emblem
was introduced to symbolize a new era of performance product. Its design was
inspired by the cues on the product, often called the side stripe cross check.

In 1996, the Reebok logo underwent only a few minor changes. Reebok took a big step
in 1998 and took away their logotype, while using only the cross check which
appeared on their products very aesthetic. In 2000, the company once again took out
the logo and used only logotype, which was further modified and made more modern
in 2002.

In 2004, the logotype, too, was discarded, and the cross check was reissued. To attain a
bigger link to the youth market, the company brought in a new tier of product called
Rbk in 2001. The wide success of this rebranding made Reebok to look at its overall
branding scheme and learn that the future of the brand would be more effectively
depicted by this new logo. The Rbk logo was created by the Arnell Group

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.
Celebrating the 50th anniversary of the brand name in 2008, Reebok brought back its
brand identity from Rbk to Reebok. While Rbk worked for their brand identity, the
culture and the business, Reebok is timeless and manifests the companys high values.
The current Reebok logo design features a new font that is modern yet simple,
complementing the brand identity and reflecting the brand values

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4.1 Research Study

PRIMARY DATA
Research objective:
The objective of research is to understand customer preference towards Fila and
Reebok shoes.

Research Methodology:
The research is descriptive research wherein on-field survey is done with the help of
questionnaire.

Research sample:
50 respondents were selected for research and the survey held only for those people
who go to gym on regular basis.

Research limitations:
Only 50 respondents were selected for the survey due to geographical constraints

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4.2 Analysis and Interpretation

Age group
18-25

25-35

35-45

above 45

4%
11%
40%

45%

In this research it is observed that buyers in age group of 18 25 years were

40% of the total buyers whereas buyer in age group of 25 35 is 45%, in 3540 is 11%, and buyers above age of 45 is 4%.

It shows that majority of the buyers fall in the age group of 18-25 and 25-35
i.e. total of both is 85%

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Do you prefer wearing branded shoes

Yes

No

30%

70%

In this 70 % of respond had said yes and remaining 30% said no.

From here onwards the further survey is conducted with this 70 % responder
who said yes

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How often do you wear branded shoe?

Regularly

Few days a week

occasionally

20%
30%

50%

30% of responders are regular user of branded shoes.

From the 70 % of responders some said that they wear branded shoe only few
days a week. i.e. 50%as most of them are working and as they can wear
branded sport shoe only on casual day.

20% of responders fall on occasionally because they do not afford to wear

expensive branded shoe daily.

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From where do you come to know about

these brand?
Television

Internet

Hoardings

Word of Mouth

15%

10%

45%

30%

Television and internet advertisement of branded shoe plays major role with
combine 75%. Most people use social networking sites regularly which gives
them information about the brands of shoe.

Whereas hoarding helps a company to attract 10 % response and word of

mouth with 15% response .

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Which of these brandsaccording to you is

trustworthy?
Nike

Adidas

Reebok

Puma

Fila

10%
30%
15%

20%
25%

In todays date Nike is most trusted shoe brand along with Adidas and Reebok.

While Puma and Fila gaining some trust from their customers.

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Which brand of sport shoe do you wear?

Adidas

Nike

Reebok

Fila

Others

10%
25%

10%

15%

40%

40% of responders wear sport shoe of Nike whereas 25 % wear Adidas.

15% people uses Reebok sport shoes whereas 10 % people uses Fila sport
shoes.

The remaining 10 % includes brand like Puma, converse, Liberty etc.

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How satisfied are you with your branded

shoe that you wear most often as mentioned
Satisfied

Somewhat satisfied

Somewhat dissatisfied

Dissatisfied

2%
8%

25%

65%

Majority of branded shoe users are satisfied i.e. 90 %

Whereas 10 % people are dissatisfied.

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What features do you consider while

purchasing a shoe?
Quality

Brand Image

Style

Price

15%
30%

20%

35%

Most people goes for quality and brand image of a shoe company.

Nike will be the best example for this question.

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What motivates you to make your purchase?

Self-decision

Friends

Peer group

celebrities

5%
20%

35%

40%

35% People make purchase by their own decision while 40% make purchase with the
help of the opinion of their friends.

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where do you usually purchase branded

shoes?
Internet

Shopping mall

Departmental store

Discount retailers

5%
20%
45%

30%

Most people like to purchase branded shoe from shopping malls and internet.

Whereas 20% and 5% people like to purchase branded shoe from departmental
store and discount retailers respectively.

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What is your price range when you buy a

shoe?
1000-1500

1500-2000

2000-3000

Above 3000

10%
35%

15%

40%

35% people buy branded shoe in 1000-1500 price range whereas 40% people
buy branded shoe in 1500-200 price range.

While only 10% people buy branded shoe in a price range that is above 3000.

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Which brand has better shoe designs?

Reebok

30%

15%

Nike

Fila

Adidas

25%

30%

According to the survey Nike and Adidas has best design in current market of
branded shoe.

While Reebok and Fila also have good reputation about the design of their
shoes.

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4.3 CONCLUSION

Branded shoes are the brand registered in the minds of all young people. Its the brands
which speak about trust for the products it provides. The brands are so much registered
in the mind of people that when shown are easily recognized.
In India the perception of branded shoe companies have been changed in recent years
due to changes in lifestyle, earning extra money, desire to use branded shoe products
etc. Even the school kids are attracted towards branded sport shoe due to the attractive
advertisement.
Young generation wants to purchase branded sports shoe because changes in lifestyle
and people who promotes the brand are their role model.
This study found that Reebok was perceived as a reliable and trendy brand.
Comparatively Reebok has better marketing strategies than fila. Reebok does more
promotional activities than Fila whereas Fila have been gaining some goodwill in
Indian market.
To overcome this problem Fila has to do more and more promotional strategies. Fila
has to gain customers attention towards their brand. Both Fila and Reebok has almost
same product line and price range but the only thing is that Reebok has better
marketing planning and development than Fila.
According to the survey conducted by me Reebok is more trustworthy and reliable
brand than Fila. Both the brands are not market leader but they are slowly and steadily
growing in branded shoe market. Nike and Adidas are most favourite brands of many
people.
It is very clear from the study that Reebok is well ahead of Fila. Reebok is clearly a
front runner along with Nike, Puma and Adidas etc. Whereas Fila has to focus more on
their product line and marketing strategies.

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Reebok and Fila both are tough competitors for Nike, Adidas and puma. Both Fila and
Reebok has to improve their operations and product line. They can gain extra market
share by providing shoe at reasonable price as most of the potential buyers belongs to
middle class and higher class family, middle class people cannot afford to purchase
high priced branded shoe. So both Fila and Reebok has to produce low cost branded
shoe which would have reasonable price in market. They can also improve the quality
of their product. They have to produce more products for young customers as most of
the potential buyer of branded shoe belongs to the age group from 14 to 30 years of
age.

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4.4 BIBLIOGRAPHY

BOOK
Marketing Management

Phillip Kotler

Websites
http://www.fila.com/History/History%20of%20Fila,en_US,pg.html
http://www.famouslogos.us/fila-logo
http://en.wikipedia.org/wiki/Fila_(company)
http://www.famouslogos.us/reebok-logo
http://en.wikipedia.org/wiki/Reebok
http://www.adidas-group.com/en/

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4.5 ANNEXURE
Questionnaire
NAME: ___________________
AGE: 18-25

25-35

SEX: MALE

35-45

Above 45

FEMALE.

Qualifying Question: Do you usually wear branded shoes? Y N

Proceed if answer is yes. If No, thank and terminate the interview.

1. How often you wear branded shoe?

Regularly

few days a week

occasionally

2. From where do you come to know about these brand?

Television

Internet

Hoarding

Word of mouth

3. Which of these brands is trustworthy?

Nike

Fila

Reebok

Others

(Specify)___

4. Which brand of sport shoe do you wear?

Adidas

Fila

Reebok

Others

(Specify)____

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5. How satisfied are you with your branded shoe that you wear most often as mentioned

Satisfied

Somewhat satisfied

somewhat dissatisfied

Dissatisfied

6. What features do you consider while purchasing a shoe?

Style

Brand image

Quality

Price

7. What motivates you to make your purchase?

Self-decision

Friends

Peer group

Celebrities

8. where do you usually purchase branded shoes?

internet

shopping mall

Departmental store

Discount retailers

9. What is your price range when you buy a shoe?

1000-1500

1500-2000

2000-3000

Above 3000

10. Which brand has better shoe designs?

Fila

Reebok

Puma

Nike

other

THANK YOU

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