Description
It starts with the history of the company and growth charted by the company. It describes the secrets to Reebok's success and the strengths /weakness of the company. It also talks about the advantages and disadvantages of Human Rights Now Program. It further talks about trends in favour of Reebok and potential benefits of umbrella campaign.
REEBOK INTERNATIONAL LTD.
1.The Reebok Success Story
• Ability to respond to consumers’ needs & desires • High brand recognition. – 1987 survey: 95% of athletic shoe owners were aware of Reebok v. 57% two years prior • 98% teens purchased more than three pairs of shoes per year – Unaided awareness of Reebok doubled between 1985 and 1987 • Compared with a drop by Nike on the same measure • 57% of teens dubbed Reebok the “in” shoe (38% for
Strengths
• Market penetration – 52% had ever owned Reeboks (70% of the teens) – 45% were Reebok owners – higher than any other brand (customer retention is easier than acquisition) • High brand loyalty – 2 out of 3 consumers who last purchased Reebok intended to make Reebok their next purchase – Reebok owners more likely to purchase athletic shoes at regular price than non-owners
Some more Strengths
• Access to retailers through its direct distribution strategy • Field service and promotion representatives – Add value by travelling the U.S. teaching retailers and consumers about the products’ features and benefits • Well equipped to handle future supply shortages (like the ones in 1987) by manufacturing in multiple countries • A strong advertising campaign
Weaknesses
• Too much reliance on retail stores to sell products • Poor employment practices at overseas manufacturing sites • A heavy dependency on footwear sales
2.HOW DO CONSUMERS’ BUY ATHLETIC FOOTWEAR?
Buying Pattern:
Info. Source Friends/Relative Coach/Instructor Salesperson Magazine Article Advertisement Total 72 65 54 50 45 Users 69 54 53 52 43 Non Users 74 65 54 48 47
PRE 1987
? ? ? ? ? ?
1987
? ? ? ? ? ?
?
Innovative Vivid Adventurous Experimental Special Vibrant New
?
? ?
Comfortable Youthful Energy Fun Diverse Clean Leader A standard Middle class
PSYCHOGRAPHIC TRENDS
MARKET SEGMENTS
Weekend Warriors
• Use shoes for sports • Not so zealous athletes
Casual Wearers
• Athletic shoes for street-ware • Largest segment – 80%
Serious Athletes
• Smallest segment • Pyramid of Influence(Opinion leaders)
3.AD PROGRAMS
• Category advertising – A variety of communications to promote specific product lines • “Reeboks let U.B.U.” umbrella advertising – Stress freedom of expression and individuality to rekindle the vitality of the Reebok name while maintaining the brand’s mass appeal • Olympics advertising – Associate Reeboks with sports to excite brand dealers • Energy Return System (ERS) – Performance-based print campaign to reach active sports participants
CATEGORY ADS ($22M)
• $8M earmarked for category-specific print and television ads • $14M allocated to athlete endorsements and grassroots promotional events • Communications program for each category varies widely • Major category examples: – Basketball targeted young adults using performancebased TV ads and athlete endorsements – 73% of the tennis expenditures allocated to athlete endorsements and tournament sponsorship, along with 15% for print ads geared toward casual usage
PROGRAM EVALUATIONS
• Overall communications objectives – Boost brand image to be unique and exciting – Maintain mass appeal • Category advertising – Performance-based communications maintain credibility with opinion leaders – Fashion as a secondary focus captures broader market of casual wearer – Move toward standard core communications with subtle adjustments to tailor to specific categories
U.B.U ADS
• Campaign objectives: – Stress freedom of expression and individuality – Maintain the brand’s mass appeal • Targeted at 18 to 34 year olds, particularly women • TV ads run during prime-time and late-night shows on cable channels such as MTV and ESPN • Print ads run (Aug-Dec) in fashion, entertainment, and life style or special-interest magazines – July editions of five athletic shoe trade magazines
PROGRAM EVALUATIONS
• “Reeboks let U.B.U.” – Necessary to meet objectives efficiently and effectively – Appropriate to both objectives • Message stresses self-expression and individuality • Placement of TV and print ads attempts to reach the mass market • Exception: Ad placement in July editions of trade magazines
OLYMPICS ADS
• Assured Reebok brand exclusivity in athletic footwear advertising during NBC’s television coverage of the Summer Games • Ads featured real people wearing Reebok shoes and engaging in street or yard sports – Example tagline: “Summer Games, Bronx, NY” – End commercial with slogan “And you thought all the excitement was in Seoul” • Expected to excite Reebok brand dealers
PROGRAM EVALUATIONS
• Olympics advertising – Summer Olympics are exciting and appeal to the worldwide mass market – Association with sports appeals to Reeboks dealers • Recommendation: Print ads should replace the “U.B.U” ads in July editions of trade magazines
ENERGY RETURN SYSTEMS(ERS)
• A $600,000 performance-based print campaign featuring Reebok’s new Energy Return System • ERS design competes with Nike’s Air line and is intended to reach active sports participants – $75-90 per pair retail price range – Ads carry the slogan “The Revolution is Over” in response to Nike’s successful 1987 “Revolution” campaign – Ad will run in sports magazines (Jun-Dec)
PROGRAM EVALUATIONS
• ERS new product advertising – New innovation is exciting and ads are appropriately performance-based • Reebok is not known for its innovative technology • Requires a brand image stretch, rather than a mere boost – Target market is the active sports participants • Print ads placed in hard core athletic magazines – Direct competition with Nike and niche competitors • Requires heavy television advertising
4.NEED FOR UMBRELLA CAMPAIGN
Footware Growth
Nike
• Demand for athletic shoes • Changing exercise trends • Heavy promotions for “AIR” • Enters into women footware - IE • Just Do It
Market Conditions1988
Consumer Attitude & Behaviour Challenge
• Higher leather costs, labour costs, weakened Dollar • Limited brand selection by retailers • Reducing Athletic shoe life –cycle(9 Months)
• Changing consumer perspective • Influence of serious athletes • To maintain cult-like following, trendy image in mass appeal market • New strategic approach
MORE AWARENESS
?
MORE SALES TRENDS IN FAVOUR OF REEBOK
57% in 1985 95% in 1987 ? 90% teens bought Reeboks thrice in a year ? Higher unaided awareness ? Perceived good in quality and comfort
Customer base - 52% of the surveyed sample Teens – 70% ? Current market share – 45% ? Loyal customer base(2/3)
?
POTENTIAL BENEFITS - UMBRELLA CAMPAIGN
Boost brand image
Brand loyalty
High awarenes s
Market penetrati on
6. EVALUATE THE HRN TOUR SPONSORSHIP
Objective is to reach young people with a positive message about Reebok • Advantages: ?Association with the most exciting event of the year ?High awareness(60%) and favourable attitude(49%) among Reeboks target market(18-34) ?1 lakh new members in the last concert
HRN TOUR SPONSORSHIP
More Advantages: ?Mass pre-event, event, and post-event exposure ?Gels well with the UBU Umbrella campaign ? 18 concerts in 16 countries on 5 continents ? Extensive advertising, promotions, and public relations ?Worldwide Branding exercise
HUMAN RIGHTS NOW!!
• Disadvantages: ?As the sole underwriter of the tour, the risks are high ?Financial risk: $2M tour expenses + up to $8M tour deficit + $5M marketing = $15M ?Potential negative tour publicity ?AI has the final decision on most aspects of the tour ?Net profits from tour merchandise donated to AI
OTHER OPTIONS FOR HRN TOUR
1. Get other Sponsors on board, like Media Sponsor, Food sponsor, Travel Sponsor and Reebok can be Lifestyle partner 2. Launch special Human Rights Edition Merchandise and Shoes
THANK YOU
doc_198929096.pptx
It starts with the history of the company and growth charted by the company. It describes the secrets to Reebok's success and the strengths /weakness of the company. It also talks about the advantages and disadvantages of Human Rights Now Program. It further talks about trends in favour of Reebok and potential benefits of umbrella campaign.
REEBOK INTERNATIONAL LTD.
1.The Reebok Success Story
• Ability to respond to consumers’ needs & desires • High brand recognition. – 1987 survey: 95% of athletic shoe owners were aware of Reebok v. 57% two years prior • 98% teens purchased more than three pairs of shoes per year – Unaided awareness of Reebok doubled between 1985 and 1987 • Compared with a drop by Nike on the same measure • 57% of teens dubbed Reebok the “in” shoe (38% for
Strengths
• Market penetration – 52% had ever owned Reeboks (70% of the teens) – 45% were Reebok owners – higher than any other brand (customer retention is easier than acquisition) • High brand loyalty – 2 out of 3 consumers who last purchased Reebok intended to make Reebok their next purchase – Reebok owners more likely to purchase athletic shoes at regular price than non-owners
Some more Strengths
• Access to retailers through its direct distribution strategy • Field service and promotion representatives – Add value by travelling the U.S. teaching retailers and consumers about the products’ features and benefits • Well equipped to handle future supply shortages (like the ones in 1987) by manufacturing in multiple countries • A strong advertising campaign
Weaknesses
• Too much reliance on retail stores to sell products • Poor employment practices at overseas manufacturing sites • A heavy dependency on footwear sales
2.HOW DO CONSUMERS’ BUY ATHLETIC FOOTWEAR?
Buying Pattern:
Info. Source Friends/Relative Coach/Instructor Salesperson Magazine Article Advertisement Total 72 65 54 50 45 Users 69 54 53 52 43 Non Users 74 65 54 48 47
PRE 1987
? ? ? ? ? ?
1987
? ? ? ? ? ?
?
Innovative Vivid Adventurous Experimental Special Vibrant New
?
? ?
Comfortable Youthful Energy Fun Diverse Clean Leader A standard Middle class
PSYCHOGRAPHIC TRENDS
MARKET SEGMENTS
Weekend Warriors
• Use shoes for sports • Not so zealous athletes
Casual Wearers
• Athletic shoes for street-ware • Largest segment – 80%
Serious Athletes
• Smallest segment • Pyramid of Influence(Opinion leaders)
3.AD PROGRAMS
• Category advertising – A variety of communications to promote specific product lines • “Reeboks let U.B.U.” umbrella advertising – Stress freedom of expression and individuality to rekindle the vitality of the Reebok name while maintaining the brand’s mass appeal • Olympics advertising – Associate Reeboks with sports to excite brand dealers • Energy Return System (ERS) – Performance-based print campaign to reach active sports participants
CATEGORY ADS ($22M)
• $8M earmarked for category-specific print and television ads • $14M allocated to athlete endorsements and grassroots promotional events • Communications program for each category varies widely • Major category examples: – Basketball targeted young adults using performancebased TV ads and athlete endorsements – 73% of the tennis expenditures allocated to athlete endorsements and tournament sponsorship, along with 15% for print ads geared toward casual usage
PROGRAM EVALUATIONS
• Overall communications objectives – Boost brand image to be unique and exciting – Maintain mass appeal • Category advertising – Performance-based communications maintain credibility with opinion leaders – Fashion as a secondary focus captures broader market of casual wearer – Move toward standard core communications with subtle adjustments to tailor to specific categories
U.B.U ADS
• Campaign objectives: – Stress freedom of expression and individuality – Maintain the brand’s mass appeal • Targeted at 18 to 34 year olds, particularly women • TV ads run during prime-time and late-night shows on cable channels such as MTV and ESPN • Print ads run (Aug-Dec) in fashion, entertainment, and life style or special-interest magazines – July editions of five athletic shoe trade magazines
PROGRAM EVALUATIONS
• “Reeboks let U.B.U.” – Necessary to meet objectives efficiently and effectively – Appropriate to both objectives • Message stresses self-expression and individuality • Placement of TV and print ads attempts to reach the mass market • Exception: Ad placement in July editions of trade magazines
OLYMPICS ADS
• Assured Reebok brand exclusivity in athletic footwear advertising during NBC’s television coverage of the Summer Games • Ads featured real people wearing Reebok shoes and engaging in street or yard sports – Example tagline: “Summer Games, Bronx, NY” – End commercial with slogan “And you thought all the excitement was in Seoul” • Expected to excite Reebok brand dealers
PROGRAM EVALUATIONS
• Olympics advertising – Summer Olympics are exciting and appeal to the worldwide mass market – Association with sports appeals to Reeboks dealers • Recommendation: Print ads should replace the “U.B.U” ads in July editions of trade magazines
ENERGY RETURN SYSTEMS(ERS)
• A $600,000 performance-based print campaign featuring Reebok’s new Energy Return System • ERS design competes with Nike’s Air line and is intended to reach active sports participants – $75-90 per pair retail price range – Ads carry the slogan “The Revolution is Over” in response to Nike’s successful 1987 “Revolution” campaign – Ad will run in sports magazines (Jun-Dec)
PROGRAM EVALUATIONS
• ERS new product advertising – New innovation is exciting and ads are appropriately performance-based • Reebok is not known for its innovative technology • Requires a brand image stretch, rather than a mere boost – Target market is the active sports participants • Print ads placed in hard core athletic magazines – Direct competition with Nike and niche competitors • Requires heavy television advertising
4.NEED FOR UMBRELLA CAMPAIGN
Footware Growth
Nike
• Demand for athletic shoes • Changing exercise trends • Heavy promotions for “AIR” • Enters into women footware - IE • Just Do It
Market Conditions1988
Consumer Attitude & Behaviour Challenge
• Higher leather costs, labour costs, weakened Dollar • Limited brand selection by retailers • Reducing Athletic shoe life –cycle(9 Months)
• Changing consumer perspective • Influence of serious athletes • To maintain cult-like following, trendy image in mass appeal market • New strategic approach
MORE AWARENESS
?
MORE SALES TRENDS IN FAVOUR OF REEBOK
57% in 1985 95% in 1987 ? 90% teens bought Reeboks thrice in a year ? Higher unaided awareness ? Perceived good in quality and comfort
Customer base - 52% of the surveyed sample Teens – 70% ? Current market share – 45% ? Loyal customer base(2/3)
?
POTENTIAL BENEFITS - UMBRELLA CAMPAIGN
Boost brand image
Brand loyalty
High awarenes s
Market penetrati on
6. EVALUATE THE HRN TOUR SPONSORSHIP
Objective is to reach young people with a positive message about Reebok • Advantages: ?Association with the most exciting event of the year ?High awareness(60%) and favourable attitude(49%) among Reeboks target market(18-34) ?1 lakh new members in the last concert
HRN TOUR SPONSORSHIP
More Advantages: ?Mass pre-event, event, and post-event exposure ?Gels well with the UBU Umbrella campaign ? 18 concerts in 16 countries on 5 continents ? Extensive advertising, promotions, and public relations ?Worldwide Branding exercise
HUMAN RIGHTS NOW!!
• Disadvantages: ?As the sole underwriter of the tour, the risks are high ?Financial risk: $2M tour expenses + up to $8M tour deficit + $5M marketing = $15M ?Potential negative tour publicity ?AI has the final decision on most aspects of the tour ?Net profits from tour merchandise donated to AI
OTHER OPTIONS FOR HRN TOUR
1. Get other Sponsors on board, like Media Sponsor, Food sponsor, Travel Sponsor and Reebok can be Lifestyle partner 2. Launch special Human Rights Edition Merchandise and Shoes
THANK YOU
doc_198929096.pptx