Reebok is an English apparel and footwear company and since 2005 it is a subsidiary of the sports giant Adidas. It produces and distributes ranges of products for running, fitness, clothing, and footwear.
Reebok is the sponsor of The UFC (Ultimate Fighting Champion), Spartan Race, CrossFit, etc. The headquarter of the company is in Boston Massachusetts with its regional offices in Montreal, Hong Kong, Amsterdam, and Mexico City. In the year 2010, Reebok established its brand in India.
In the Indian market, it has a share of 47% in the sports footwear and apparel category. Reebok has now expanded in Pakistan and Sri Lanka as well.
Segmentation targeting and positioning in the Marketing Strategy of Reebok
Reebok has segmented the market according to different ages and targets all the customers who want to be fit and are adventurous and sporty. It offers ranges of products on footwear, fitness equipment and apparels for men, women, and kids. The product ranges have been segmented according to age and the required comfort and design for different age groups.
Consumers who follow niche discipline like combat MMA and Cross-fit are also being targeted by the brand. Reebok has an exclusive deal with Cross-fit and has become the exclusive provider of apparel, footwear, and accessories for the brand.
Reebok’s positioning is very unique in the market and it understands that the consumers are unique and has different requirements. The positioning of Reebok is to celebrate the distinct qualities of people and appreciate what makes them who they are. It celebrates, authenticity and individuality.
In its #FitToFight campaign encouraged women to fight and be physically, mentally and socially fit. Reebok claims to be a woman-first brand and also a feminine brand.
Always Challenge and Lead through Creativity
“At Reebok, we see the world a little differently and throughout our history have made our mark when we’ve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand’s unlimited creative potential.”
“Reebok is dedicated to providing each and every athlete – from professional athletes to recreational runners to kids on the playground – with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought un-reachable”
Competitive Advantage of Reebok
Adidas as parent company :
Reebok was acquired by Adidas for $3.78 billion and this was a game-changing moment to help Adidas dethrone Nike from its position as no. 1. Adidas’s global presence and strong brand recognition have helped Reebok target newer markets more efficiently. Adidas has helped nurture Reebok and also big investments in advertising and marketing of Reebok.
Targeted advertising :
Reebok is a more targeted brand with a high concentration on categories such as CrossFit and has tied up with UFC (Ultimate Fighting Championship) and MMA (Mixed Martial Arts). The MMA is globally dominated by Tapout, Venum, Bad Boy, etc.
Strong in the women’s segment :
In International Women’s day, Reebok India released the campaign #BruisesCanBeGood. This was to honor the bruises an indication of mental toughness and physical strength of women. It was a campaign to show how important it is to teach girls and women the art of self-defense. This campaign was along the lines of #FitToFight campaign. The strong positioning of the brand has helped it have a stronger focus and also a point of differentiation.
BCG matrix of Reebok
Reebok was acquired by the Adidas group and for the group, both the brands Reebok and Adidas fall under the star category of the BCG matrix.
Despite the tough competition faced by Reebok in the sports and fitness industry, it is doing decently well in the market. Reebok’s sales are America fell by 15% in 2017 but the brand performed well in China showing double-digit growth of 25%. The brand requires the huge investment of marketing and advertising and strong innovation to have a better foothold in the market because the sports industry is growing and the opportunities are huge.
Distribution Strategy of Reebok
The company has 100 exclusive stores spread across India and also has a retail presence from 2500 multi-brand stores. The brand has been adding one store each week and also has an ambitious plan to open a store every 72 hours. The brand also leverages the strong distribution network of Adidas in the major cities of India.
The brand has also taken advantage of the online stores and has an organized web system that handles the distribution of the products. The brand has also merged with other online stores to sell its products.
Brand equity of Reebok
In the year 2017, it obtained the status of the most valuable brand and has acquired a very high brand value of $1.2 billion. The brand has been doing well in the market and speaks of elegance and style in sports.
The innovative campaigns and product portfolio has helped build the identity of the brand. It has a unique identity, designs, reputation, and heritage. The brand has helped Adidas drive its future sales growth and improvement of profits.
The products of Reebok has a tough look, representing the extreme lifestyle. The entire brand architecture of Reebok has revolved around inspiring new heights of achievement for the consumers and for the brand itself.
Market analysis :
Reebok has implied a strategy to have a tie-up with many channels across India to promote its product at different levels, this has helped Reebok improve its market share in the urban and rural India.
Reebok has been expanding its price ranges, product variety, geographical presence and also the promotion channels. The key markets of Reebok are the Asia Pacific which includes countries like korea, Japan, Hong Kong, Australia, China and India
The consumers love for sports is moving beyond cricket in India with the emergence of tennis, badminton, football as well as yoga and CrossFit. Sports apparel and equipment is said to become the next big industry by 2025. India’s market is doing very well with the growing economy and increasing disposable income. Reebok can have a first mover’s advantage with terms of a brand whose sole focus is fitness.
Customer analysis :
Reebok has always claimed itself to be a customer-focused brand. To make the customer’s shopping experience smoother, it has its products displayed in different categories for ‘Walking’, ‘Aerobics’, ’tennis’ ‘cricket’, ‘CrossFit’, ‘Boxing’ etc. the main target customers of Reebok are women. It is a single place for all the equipment needed for Combat Training.
The brand is targeting more specific customers who are into CrossFit, Martial Arts, etc. and creating a point of differentiation. This has helped Reebok gain a different set of customers that are unique from Adidas and Nike.
Promotions in the Marketing Strategy of Reebok
The brand is using channels like social media, advertisements, billboards, online advertising, TV, etc. to promote its products. Reebok is trying to establish itself as the brand focused on the women’s fitness market.
The ad campaign “Your move” focused on this matter. For sports products, it has used celebrities like M.S. Dhoni, Rahul Dravid, etc. We see the brand doing the number of sponsorship, for instance, it sponsored sports kits for the IPL teams like Kolkata Knight Riders, Rajasthan Royals, Royal Challengers Bangalore, etc.
The “Run Easy” campaign was very profitable for the brand that emphasized running as a social and fun activity. Reebok also promotes its products through infomercials to create impulse purchase. To promote its products the brand also puts up a clearance sale two times a year to clear its older stocks and to make consumers happy.