Reebok case study "Reebok: In pursuit of Generation X"

Résumé du document

Reebok is a large and technological footwear company founded more than 110 years ago. Reebok's history started in 1895 in the United Kingdom, and continued in the United States. It became an international company at the end of the 80s. Today, Reebok's products are sold in 170 countries. This global strategy helped the brand to match the performance of its main competitors: Adidas and Nike. Reebok became one of the 3 market leaders, by sponsoring a lot of athletes and anticipating new trends such as aerobics, sports for women, and casual fashion (using sport-shoes everyday). Moreover, the company created new products, (apparels, T-shirt, bags), so they could stay competitive and a step ahead of its two aggressive competitors. As athletic footwear represented 40% of the total footwear sold, these two brands were taking away most of the market share. Moreover, Adidas and Nike had a fashionable brand-image, which was not true of Reebok which was seen by the public and customers more as a technical brand than "fashionable" one. Since 1990, Reebok has been using strategic sponsoring of prestigious athletes, like a lot of other sportswear brands. In 2003, Reebok's new marketing campaign changed the image of the company in the customer's mind, and their brand perception of Reebok. This new way of advertising was introduced to the company by Micky Pant, who chose to communicate a new message, to a new target, which Reebok did not really reach before, in a new and innovating way: viral marketing. This strategy is what we will study, by first explaining the concept of viral marketing, and then studying Reebok's new advertizing concept. Finally we will analyze the results of this campaign.

Our society has evolved a lot in the last 20 years, particularly in terms of demography and new technologies. Mentalities have also changed a lot, and we observe new consumer segments, with new consumption needs. To keep abreast of these evolutions, brands have adapted their marketing strategy. This is the case with viral marketing.

Viral marketing is a new way of using the internet to communicate. It is a kind of relational marketing which is being used by more and more companies, as traditional media (billboards, TV, radio, cinema, magazines) are over used and are becoming less efficient. Viral marketing is different from traditional media as it puts internet users at the center of the communication process. Internet users, especially the ones who are "bloggers", are targeted by the brand, which use viral marketing to seduce them. It is an interactive way of communication, because not only is the web user affected, but he also helps spread the message by sharing the links, videos, and ideas with others internet users. The consumer is not just the receiver; he can now become the transmitter. However, it is not that easy to make the consumer take an active role in spreading the brand message. There are some important points which must be implemented to ensure his involvement:

Extraits

[...] - The message has to be original and must attract curiosity: Actually, if the message is usual and if there is no more innovations that creations the consumer can see on television or on billboards, the consumer will not get the purpose to share it with friends. The format must be innovating, creative and must call out the people concerned. Briefly, the consumer must react, and react positively. - Viral Marketing must come from the brand: Viral marketing can come from different sources. It unhopefully appears without brands willing. Viral marketing can be a post on a blog criticizing a brand, a video showing a product default, complains on a forum about a service or a product. [...]

[...] But, he definitely changed the marketing and communication spirit of Reebok Company, with implementing a new way of advertizing: he's been quite an avant-garde because nowadays, traditional media are less and less used, in favor of internet advertising. To be really successful, the brand should have mixed traditional media advertizing (which efficiencies is still proved) and viral marketing. As they would have used different way of advertizing, they would have get qualitative results from viral marketing, and quantitative results, generally coming from traditional advertizing. Finally and unfortunately, Reebok didn't succeed by itself to gain market shares. [...]

[...] As we studied in part one, viral marketing is very efficient beside the people who are in this age range. That is certainly why Micky Pant chose this type of advertising. As we can read in the case, he studied a lot this community, to know what would make them laugh, what exactly their aspirations were and how they reacted in different situations. He highlighted that they were the ones who were most annoyed by advertising everywhere, who were bored at work because they had a lot of work and didn't seem to agree with their job values. [...]

[...] reebok case study “Reebok: In pursuit of Generation TABLE OF CONTENTS INTRODUCTION p.3 I. Using viral marketing, a new way to communicate p.4 a. Definition of viral marketing p.4 b. Advantages of using viral marketing instead of traditional media p.5 c. Limitations and risks of viral marketing p.7 II. 2003: Reebok and Terry Tate's buzz p.7 a. How to reach Generation p.7 b. Terry Tate advertising concept p.8 III. What are the results of Terry Tate viral campaign p.9 a. [...]

[...] That is the case with using viral marketing. a. Definition of viral marketing Viral marketing is a new way of using internet to communicate. It's kind of a relational marketing used by more and more companies as traditional media (billboards, TV, radio, cinema, magazines ) are over used and becoming less and less efficient. Viral marketing is different from traditional media with putting internet users in the middle of the communication process. Those internet users, and especially the ones who are “bloggers” are targeted by the brand using viral marketing to seduce them. [...]