You are on page 1of 6

10/12/2013

FLAWED SALES MODEL STOPS REEBOK RUN


CASE ANALYSIS

SUBMITTED BY Keerthi Kocherlakota 2012PGP164

Research Problem: The rapid expansion of Reebok stores by the Franchisee model has resulted in the dilution of the brand in India. It was also accompanied with severe losses at different levels of the distribution chain. The research problem would be to identify the deficiencies in this case and address the antecedent factors that might have caused this to happen. 1. Why the rapid expansion of the number of stores of Reebok had resulted in losses 2. How the increase in the stores has diluted the brand image of Reebok in India 3. What could be done to make the situation at hand better and to combat the diluting brand image Data Collection Methodology:

1. Problem Solving Method

In depth interviewing: Franchisor Level o Interviewing a select franchisors to find out their expectations from the franchisees Franchisee level o Interviews to know if the franchisors expectations are clearly known to them o Informal interactions with franchisors, field visits Formal interviews with at least 10 franchisors and franchisees needs to be conducted. These interviews are focused on various themes that would have been identified during the preliminary data collection procedures involving field work. Each interview needs to be recorded and transcribed. Field notes needs to contain the actual description of the setting and what is going on there Analytical remarks, if any

Observation: Store Level:

o Observing what is done at the store level for the sale of Reebok and to determine the extent of sincerity with which the store manager looks out for the overall benefit of the brand o Informal interactions as to know whether the store managers know what is expected of them During the observations, it is preferable to have informal interactions with selected informants 2. Case Study research method By relying on the secondary data of case studies and identifying situations where companies have dealt with situations of a similar kind and arrived at possible solutions in such cases. In this situation, case studies involving franchising models could be studied in order to identify the critical success factors of businesses in such models, understand how the brand image of Reebok was diluted by the franchising model and also to explore the factors that have resulted in the models failure in India Rationale:

Problem Solving Method: o This situation has a clearly defined problem and so this method could be used to perform the situation analysis with highlighting the causes of the problem, weaknesses in the system and causes of its breakdown o By data collection at the individual levels, the problems could be clearly highlighted and it becomes easier to pinpoint what went wrong o In depth interviewing would help highlight the motives of franchisor and the franchisee while running the businesses o By keeping the questions open ended, it could elicit the responses on their expectations from the other party o The underlying objective of this interviewing would be to know whether the expectations of franchisor are clearly known to the franchisee and vice versa. o In case there is a gap in expectations, how do they make up for the shortfall in such situations?

o It could also further elaborate on those expectations of these individuals which arent clearly stated.

Case Study Research Method: o Given that the fact or the situation in existence is already known clearly- The diluting brand value of reebok in India and also that there are accumulated losses in the system. o The circumstances that have resulted in this situation are clearly known- The detailed contextual analysis of a limited number of events leading to the overall losses for Reebok as well as the diluting brand image have been described explicitly in great detail. o The research addresses an explanatory question as to how or why the rapid expansion has resulted in losses and dilution of the brand. o The boundary between the context and the phenomenon is not clear as in it is impossible to have a true picture for decision making without considering the context within which it occurred. o By studying multiple cases in the case study research method and identifying if similar results could be replicated to yield similar results in this case. It could also be used to identify the contrasting cases and highlight what shouldnt be done in this case. o Furthermore the theoretical frameworks that might have been employed in cases of a similar kind and those which could be extended into this case. Profiling of the respondents:

Problem Solving Method: For interviewingo Identifying a select set of franchisors, franchisees. These need not be necessarily pertaining to Reebok. o Need to be from the retail sector with at least a 10 years experience in operating the units. o It is preferable if the size of the company that they run is huge i.e. with at least a 100 operating units.

For observationObserving what happens at the store level and the way in which the sales activities are carried out by identifying a set of reebok stores. o Informal interaction with the store managers to know their plans to drive the sales etc. o The store need to be a normal reebok outlet. o It is preferable if observation is done in atleast 10-15 stores across different types ranging from the stores that are present in malls to those which are labelled as factory outlets. Case Study Research Method: o It would be preferable if at least 10 cases of a similar type across different types of franchising models are studied. o The case studies could also vary across different industries. o However, the business that is studied needs to be huge with at least a 100 operating units in the franchise. Questionnaire for Data Collection:

Franchisor level: 1. How do you select a franchisor 2. How frequently do you communicate with the other party 3. How often do you visit the stores 4. Do you make any surprise visits to the stores 5. How often do you check the books of accounts 6. To what extent do you offer exclusivity to the franchisee Franchisee level: 1. Do you know what is expected of you by the franchisor 2. How do you select store managers 3. How often do you visit the stores 4. How are the sales accounted for 5. Do you make any surprise visits to the stores

Data Collection Guide: o The ideal time for the interviews to be carried out should range between 20-30 minutes. It is much easier to leave the question open ended so that the interviewee can respond as he wants. This way it is easier to compile the thought processes and the other implicit data that might have been mentioned by the interviewee. o Arrange for a comfortable room o It is preferable to keep the conversation as informal as possible so that the interviewee is more comfortable and can open up while answering the questions o Take notes as well as record the discussion but only after obtaining a permission and if the interviewee is comfortable with it Observation would typically comprise spending an entire day at the store and merely observing the sales processes as handled by the staff at stores. The entire data needs to be documented as observed. Expectations from the study How do the sales for the Reebok shoes happen at various outlets? Is there sufficient demand for the product? What is the current scenario at various stores regarding the sales? What are the motivations of the franchisor and that of the franchisee while running the business and do they contradict with each other

You might also like