Reebok case study

Résumé du document

The term of buzz knew a considerable marketing development since the arrival of the new information technologies and the communication. Indeed, this broadcasting mode allows a wide distribution of messages, in high rhythms and especially in moderate costs. For example, the creation of a web site then the mailing to a first target group is enough for the buzz to build up itself if the information has enough repercussions.

The buzzwords viral marketing "refers to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes".

In the highly competitive global market, companies must face to a new generation of consumers who have new lifestyle and use new technologies as well at work than at home. The traditional advertising campaign in use appears ineffective. Moreover, Reebok's ability to expand its market share is limited by his principal competitors, like Nike or Adidas which have a strong marketing and distribution networks, so it affect sales stability as well.

Extraits

[...] So consumers are the core of the viral marketing advertising. Indeed, if they well understand the advertising and like it, they will speak about it and developed a word of mouth and make the advertising known through their friends. So consumers become the main vectors of the brand's communication. In one hand, this technique has also some advantages like the cost which is often lower than the other types of marketing, since it is the consumer himself which make the promotion of the brand near its close relations. [...]

[...] It shows that people keep in mind Terry Tate to the detriment of the Reebok brand. The buzz perfectly worked because the video was viewed in numerous countries but regrettably there was no effect on the sales of Reebok because few persons knew that the advertising was created by Reebok. Even if the buzz was a real success, it's difficult to say that the fame of the Reebok increased with this video because of the absence of the logo during the video. [...]

[...] Reebok's mission is to capitalize on its effectiveness and establish a brand personality with Generation X. Considering some of the traditional indicators of advertising effectiveness mentioned above, to what extent should they be relied on in the Terry Tate Reebok Case? In an area of new technologies where the internet takes a huge part both in work and in private life, companies understand the necessity to have his own website. Indeed, with the viral advertising, it's easier to attract consumers on the company's website. [...]

[...] Indeed, generally companies have website in order to present their products with online payments and indirectly to collect information in order to create a prospect database. By this way, companies adapt to people expectations and exploit common motivations and behaviours of consumers in order to increase sales and win market shares. Besides, it is important to use existing communication networks to take advantages of others resources. Evaluate the Terry Tate commercials. Did they increase recognition of Rebook's brand? Was the central message effective? And memorable? Did it generate a sufficient level of positive attitudes toward the brand? [...]

[...] This message was a success for the brand. In some weeks, there had been more than 20 downloads per second and the audience of the retail website of Reebok was multiplied by 4 and Tate was seen by more than 20 million persons. So the message became memorable and the buzz relayed by the short video spot amplifies this effect. The target is a sporting population which will appreciate the context of Terry Tate, practicing the most popular sport in the United States. [...]