Reebok Launches EasyTone

Current Performance
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Reebok Total Performance, 2007-2009 (In Millions)

Performance (millions)
Market Demand (units) Global Market Share Sales Revenues Gross Margin Gross Profit Marketing, Sales, Admin Net Marketing Contribution Marketing ROS Marketing ROI

2009
108 5.3% $141 37% $52 $42 $64 7% 24% EasyTone Performance 2009 (in Millions)

Current Performance
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2009 Reebok launches EasyTone Marketed as walking shoe for women Reeboks most successful new product in 5

years
Claims to tone gluteus muscles and

hamstrings/calves 28% and 11% more, respectively

Average Price: $100 Sold out and on backorder at most retailers

(Nordstrom, Lady Footlocker)

Marketing Mix
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Product

Fit shoe that works to enhance muscle tone in legs and butt

Price

$99.99-$129.99 dependent on various colors and styles

Place

Online: Reebok.com, Zappos.com, Amazon.com Strategic Retail Partners: Footlocker, Sports Authority, Nordstrom, etc.

Market Demand
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o Athletic Shoe

Market
o

Fit Shoe & EasyTone Market Demand Growth 2009-2012

Sales fell 2.2% btw 2007-2009 Growth: 8.4% btw 2009-2012

o Fit Shoe Market

o

New section of athletic shoe market Growth: 10% per year btw 2009-2012

Industry Analysis
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Fit Shoe Industry scores 59/100Profitable Industry

Competitor entry, competitor exit, substitutes, buyer power, seller power, price rivalry
Fit Shoe Industry Analysis
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0.8 0.6 0.4 0.2 0 -0.2

e o h S t s e A c i t e h

Price

Competitors

Competition
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Reebokss market share and relative share are larger

than Skechers
Competition
Reebok Nike Puma New Balance Asics Skechers Others Sales (B) $2.7 (2008) $18.36 (2008) $3.07 (2008) Not public $2.29 (2008) $1.44 (2008) Market Share 6% 31% 7% 6% 5% 5% 18% Relative Share
of top 3 competitors sales

11.2% 76.1% 12.8% N/A 9.5% 6%

Share Performance
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Potential MSI: 41%

Customer Needs/Segmentation
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The EasyTone Customer

Fitness oriented Body conscious Female, Ages 20-45 Looking to increase muscle tone of the lower body Style conscious Price concious Well educated, middle class

Purchasing Behavior Interested in trends Wants to try better products Willing to take a financial risk on a slightly more expensive product

Competitive Position/ Customer Value

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Customer Perception

Shoe that tones the butt and leg muscles with out the unattractive rocking sole, or high price of competitors.

Relative Performance

Self-commissioned study found effectiveness of EasyTone, although study was very small.

Customer Value

Increased muscle tone and definition is of greater value than the cost of the shoe. Reebok brand equity $100 is not too much more than a traditional walking shoe,

SWOT ANALYSIS
12 Strength
Balance Ball Technology Reebok Brand Equity Style preferred to other fit shoes Reeboks most successful product in 5 years Priced at mid-point of fit shoes Light-weight and less chunky than competitors Early entrant into fit shoe market

Weakness
Product currently only available for women Product on backorder for major retailers Shoe effectiveness not proven with larger study group

Opportunities
Expand into a male market Develop an EasyTone shoe for running International market expansion Create partnerships like Nike and iPod

Threats
New entrants/competitors (Nike) Studies to prove effectiveness are selfcommissioned, reducing credibility. Fit shoe trend could fail to catch on

Marketing
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Marketing
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http://www.youtube.com/watch?v=qCHKXICefFw

Marketing
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Questions?
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