Brand Management - Reebok - Case Study Example

Brand Management - Reebok Executive Summary Reebok is an American-inspired, international brand that produces and markets sports and lifestyle products based on a strong legacy and legitimacy in fitness, sports and women’s groupings. Reebok is dedicated to designing items and promoting programs that replicate creativity and innovation and the longing to perpetually dispute the status quo. (50 words) Reebok was founded in 1890 and named Reebok in 1953. This brand name was chosen because it signifies speed and any athlete would not hesitate to go for a brand that would help him or her attain a gold medal. Reebok has had numerous marketing campaigns whish have seen the company increase its sales and aggravate its customer loyalty among consumers. Marketing has played a huge role in creating awareness among individuals across the world. (75 words) Contents Subtitle Page Number Company Background…………………………………………………………4 Justification of brand development decisions ………………………………....5 Evaluation of the role of the marketing………………………………………..7 Coherence of Argument ………………………………………………………11 Conclusion…………………………………………………………………….12 References……………………………………………………………………13 Company Background Reebok International limited is a British company listed in Fortune Global 500 list. The company produces sports shoes, sportswear, sports accessories and fashion products. Reebok is the world leading fitness brand. Reebok Company is a subsidiary company of German’s Adidas AG (Reebok Official Website, 2012). The name Reebok came from Afrikaans word “rhebok” which refers to a type of an African gazelle. It was named so to signify that the company was on the move. Joseph William Foster founded the company in 1890 after an idea of making spiked shoes for running crossed his mind. (95 words) The company was first named as J. military internal and/or external conflictsW Foster and Son. In 1958, Joe and Jeff Foster, William Foster’s grandsons, renamed the company Reebok, after finding a South African dictionary won in a race by their grandfather, William Foster. This company has lived up to Joseph William’s legacy of manufacturing world-class footwear and sportswear throughout United Kingdom and the World (Reebok Official Website, 2012). It has taken the heritage of its brand to create a line of fitness accessories and equipments for both men and women. (85 words) Justification of Brand Development Decisions The mechanics of brand development have been thoroughly explained and examined over the years, with innumerable explanations of the myriad marketing activities and associated complexities (Kapferer, 2004, p. 67). Kapferer (2004) asserts that many brand management practices of top brands are adapted and even significantly altered, rendering the familiar frameworks virtually unrecognizable (p. 72). A systematic branding implies operating in a particular way, and adhering to a fixed plan. Indeed, most of the written material in brand management describes the importance of brand management as a systematic way of managing a business, defining terms, and parsing brand development decisions into a series of discreet, perfectly manageable, and logical choices (Heding & Bjerre, 2009, p. 123). (115 words) Most of the world’s successful and valuable brands have received heavy and sustainable investment over decades in every aspect of their marketing strategy. Careful considerations should be given to whether a new or improved product, line extension or modification will enhance the overall brand as well as helping with the initial sales of the product (Heding & Bjerre, 2009, p. 124). (61 words) In reference to Schneck (2005), a brand is a set of perceptions which a consumer has about a particular product from a particular manufacturer (p.156). It is a promise from a manufacturer to a customer about the benefits his or her firm will receive from a particular product. Reebok was branded as Reebok to signify the progressive benefits that the consumers and clients would get (Reebok Official Website, 2012). Customers expect brands to be a guarantee of satisfaction right through the purchase decision-making process. ‘Rhebok’ which means a gazelle signified that the company intended to increase the speed of the athlete. The spikes at the bottom of the shoes would help improve friction and grip and assist the athlete propel at a high speed. Gazelles and Antelopes are known to be among the fast animals in Africa (Reebok Official Website, 2012). A gazelle runs at a high speed of 80 kilometers per hour. All athletes are driven by the quest for success and achievement of Gold at the end of the race. Such a name would be enticing to any athlete. (181 words) Riezebos and Kist (2003) denote that development of a brand also involves licensing and the distribution channels to be used (p. 134). In some sectors, customers and clients do not differentiate between the brand owner and the brand distributor. This makes it essential to manage the brand throughout the supply chain. The decision by Reebok in 1979 to grant Paul Fireman a license to distribute its products in United States was a wise move (Reebok Official Website, 2012). This was aimed at strengthening its brand and creating awareness in North America. (92 words) Creating joint ventures and mergers to develop new products or brands is part of brand development (Heding & Bjerre, 2009, p. 125). Sports and footwear industry in America is epitomized by stiff competition between world renowned companies such as Nike, Fubu, Footstar, converse, K-Swiss and Puma. The move by Reebok to merge with Adidas was aimed at improving its competitive power and increase sales. Reebok anticipated this move to increase influence with dealers’ leverage of approval deals and sponsorships. (79 words) Evaluation of the role of the marketing Marketing is perhaps the most important aspect in an organization (Schneck, 2005, p. 56). It has direct effect on the sales and profitability of the organization. Marketing is responsible for most of the activities that bring income to the organization. Every organization dedicates staff and departments for the function of marketing. Reebok has employed numerous marketing communication tools in its marketing mix. It has invested a lot in marketing. Over years, Reebok has had numerous campaigns aimed at increasing sales and creating awareness such as the “Ree”, “Your Move”, “Framed”, “Reebok Nation”, “Fuel Yao’s Unlimited Power”, “There Are Two People in Everyone”, “Run Easy” and “I Am What I Am” (Reebok Official Website, 2012). (114 words) These campaigns have created an avenue where the company can interact with the public. Consequently, these interactions with the public create a reputation and an image of the company in their minds. For this reason, the customers believe that a company is creative and dynamic based on the campaign messages. “Ree” 2010 campaign has helped Reebok delineate sport and style to bring back joy and fun. In addition, this campaign has helped in unifying the company and its customers. The Your Move marketing campaign inaugurated in 2008 depicts Reebok as a brand that appreciates personality, and up holds people who prefer activities done in their manner (Reebok Official Website, 2012). Reebok has carried these campaigns in audio, visual and internet Medias. In this campaign, Reebok endorsed sports stars such as Thierry Henry and Alexander Ovechkin aimed at encouraging consumers to share their moves. (143 words) Reeboks marketing campaigns have also helped highlight Reebok’s brand point of view of appreciating a person’s correspondence between sport and life. “There are Two People in everyone” campaign declared that there is more to an athlete than his or her sport (Reebok Official Website, 2012). This campaign helped the consumer relate to the fact that there are at least two sides of an individual. In addition, I Am Who I Am campaign encouraged the youth and people to start appreciating their contemporary heroes and stars. These campaigns have attempted to develop fulfilling relations with customers (Reebok Official Website, 2012).(99 words) At a broader perspective, marketing has helped Reebok to create a competitive environment in sportswear industry. This has helped in reduction of sports and footwear prices to the consumers. In addition, marketing has increased the market share and sales of Reebok (Reebok Official Website, 2012). The freestyle shoe campaign brought about increased sales and brand awareness among consumers. (58 words) The numerous Reebok marketing campaigns have been integrated in different marketing communication tools. Reebok employs the use of “advertising, public relations, direct marketing and sales promotion”. Pride and Ferrell (2008) define advertising as a paid non personal message to a selected audience through mass media aimed at attaining higher brand awareness (p. 128). Reebok carries out its campaigns through audio and visual forms of advertising. Your Move campaign was done in local TV and radio stations. This advert reached a high number of people at the same time thus creating awareness to a large number of them. (97 words) In reference to Pride and Ferrell (2008) sales promotion refers to a marketing tool that uses incentives and offers to entice customers to purchase their products (p. 145). Reebok has for long used discounts and offers to its consumers. This has helped in increasing sales and market share. (48 words) Public promotion is any activity that leads to a third party mentioning a company’s product or service (Pride and Ferrell, 2008, p. 147). Public promotion involves activities such as sponsorships and corporate social responsibilities. Reebok has been involved in numerous sponsorships and corporate social responsibilities. It sponsors American Football players such as Santana Moss, Peyton Manning, Vince Young and Eli Manning. (61 words) Schneck (2005) describes direct marketing as personal presentation to consumers where they respond by filling coupons or sending emails (p. 136). Reebok greatly uses the internet to communicate to its consumers. This ensures immediate feedback to the customers and ensures that customer needs are addressed. In addition, Reebok has used the internet to modify its products to suit consumer needs and requirements. (62 words) Customer Based Brand Equity Model Building a strong brand is the aim of many organizations. Building a strong brand with significant equity proves to provide a host of numerous financial rewards to firms and customer loyalty and has become a top priority for many organizations (Netemeyer et al, 2004, p. 212). (46 words) In reference to Keller (2001), the basic premise of this model is that the power of a brand lies in what customers have learnt, felt seen and heard about the brand over time (p.3). Needless to say, the power of a brand resides in the minds of customers. (48 words) Reebok has carried out its customer based brand equity through four steps. In the first step, Reebok has established an appropriate brand identity among its customers and clients. This has been through the in-depth brand awareness. Secondly, Reebok has created an appropriate bran meaning through strong, unique and favorable brand associations. Reebok has endorsed numerous celebrities in its marketing campaigns who consumers familiarize the company with. In addition, Reebok has elicited positive, accessible brand feedbacks from its consumers. Finally, Reebok has forged brand relationships with customers typified by active and intense loyalty (Reebok Official Website, 2012). (96 words) Achievement of these four steps has involved the establishment of six brand building blocks which are brand performance, brand salience, brand judgments, brand imagery, brand resonance and brand feelings. (29 words) This model has allowed Reebok to assess its progress in its brand building attempts and in guiding its marketing research objectives (Keller, 2001, p. 4). In addition, Reebok has used the customer based brand equity model in planning, implementing and interpreting brand strategies. (43 words) Conclusion Many studies have demonstrated that branding is an essential aspect in popularizing an organization’s products. Contemporary consumers only consider brand they are familiar with and whose quality is not compromised. This paper reviewed the brand management at Reebok which makes it one of the strongest brands at the global level. The focus of all brand management activities of the company is customer satisfaction and keeping the interest of the company at the highest priority. (74 words) References Heding, T. and Bjerre, M. 2009. Brand Management: Research, Theory and Practice, New York: Routledge Publishing. Kapferer, J. 2004. The New Strategic Brand Management: Creating and Sustaining Brand Equity, New Jersey: Kogan Page Limited. Keller, Lane K. 2001. Building Customer-Based Brand Equity: A blueprint for Creating Strong Brands. Marketing Science Institute. Netemeyer, R., Krishnan, B. and Pullig, C. 2004. 'Developing and validating measures of facets of customer-based brand equity ', Journal of Business Research, vol. 57, no. 2, pp. 209-224. Reebok Official Website 2012. About Us, 7 July, [Online], Available: Riezebos, R. and Kist, B. 2003. Brand Management: A Theoretical and Practical Approach, Ohio: Financial Times Prentice Hall. Pride, W. M., & Ferrell, O. C. 2008. Foundations of Marketing. Cengage Learning. Schenck, B. F. 2005. Small Business Marketing for Dummies. John Wiley & Sons. Read More