Reebok CCM Advertising Campaign - Case Study Example

I. Situation analysis A. Company’s (or product’s current marketing situation Business or industry information The industry for composite hockey stick has replaced the traditional wooden hockey stick which has been used by hockey enthusiasts ever since. New technology gives firms various advantages to provide more advanced and custom-tailored products to new generations of hockey enthusiasts. The advantages that these new products provide have enabled the composite hockey stick segment to dominate the hockey stick industry, melting down the wooden category of the market. 2. Description of company, product or service a) Stage of product life cycle Reebok CCM offers sporting products, specifically hockey gears such as skates and sticks. While the company is in the industry which replaces the traditional hockey gears, the industry where these products are part of can be said to be in the introduction phase. The industry is said to be in the introduction phase as composite sticks replace the wooden sticks during the past few years. As apparent in the sales figures of the three major players, the composite sticks industry needs more marketing efforts in order to get past the introduction phase and experience robust growth in the players’ operations. b) Goods classification Composite hockey sticks are classified under industries that specialize in manufacture of sporting and athletic goods, as well as manufacture of sporting and recreational goods. This is according to the US NAICS code 339920 and US SIC Code 5091 respectively. c) Competitive or market positioning Reebok positions itself as the most innovative manufacturer of the hockey sporting gears—that is they aim to set and define the hockey sporting gear industry’s future by constantly innovating. This innovative positioning is apparent in its various marketing activities, as well as its products. Being the first company to open retail stores that are dedicated to selling hockey goods, the company’s positioning for always breaking the ice first is very much apparent. The new technology which is incorporated in its new products presents a lot of benefits that distinguish its product. 3. General description of market(s) served Reebok CCM serves a market that is comprised both by amateur hockey players and hockey enthusiasts. These markets comprise young people who are generally interested with hockey and with some who have later developed a passion to play in the professional field. 4. Sales history and share of market In 2007, the company grossed $190.5 million in sales. The company has a substantial share of the market, although compared to its two major competitor, it has the smallest chunk in the industry’s pie. 5. Description of consumer purchase process The consumer purchase process in the hockey goods industry, as described by the hierarchy-of-effect model is an example of a think-feel-do model. The emergence of the new hockey goods that serve as alternative provides more benefits to consumers. The main thing that consumers want about the products are to gain an edge when they play the game of hockey, as the technology allows a lot more advantages to them. ‘Think’ is first, as they get to evaluate the alternatives when choosing from the roster of hockey goods available in the market. ‘Feel’ comes in the form of assessing the level of trust among the available alternatives. After assessing the functional benefits that different alternatives provide, having a ‘feel’ of each of the brands and assessing their attitude toward it plays a great part. Lastly, the ‘do’ pertains to a certain action such as purchase decision when the consumer has evaluated the alternatives well. 6. Methods of distribution Reebok CCM has initiated a different type of distribution in its operations. It is the first among the industry players to open a retail store that is dedicated to selling hockey goods. 7. Pricing strategies employed The pricing strategy that Reebok has been using is a more-for-the same strategy. It offers more benefits and value in the form of more advance technology that come with the products to practically the same price as its competitors. 8. Implications of any marketing research With the company’s positioning of gaining an edge over the competition on the basis of innovation makes us imply that for a certain level, there is at least minimal marketing research that is done in order to manage the risks involved with the launching of more innovative products. While the company’s innovativeness can be argues to be entrepreneurial, the emergence of products which offer technology that adds value to consumers can imply some marketing research that has been done by the company; at least to determine the relative benefits the consumers look for the hockey goods in terms of usage and experience. 9. Communications history Reebok CCM over the years has built its reputation and its share in the market by relying heavily on sports sponsorship, some amount of advertising through above-the-line media as well as some non-traditional media. The company’s latest campaign, “You Plus” where advertisements feature hockey sporting gears with images of muscles, tendons and veins that seals the message with a slogan of “it’s you, but better.” B. Target market description 1. Market segments identified a) Geographic The two major segments of Reebok for its hockey goods include two geographic segments in North America which is the United States and Canada. These two segments offer the hockey goods industry a lot of opportunities as they are home for many hockey enthusiasts. b) Demographic One basis for segmentation using demographic variables is through ages. While the segments reveal some good clusters, those who are most likely to respond to marketing communications initiative and those who are hockey enthusiasts are teens and young adults, who look forward to professional hockey players as their reference group which makes them a great segment in the market. c) Psychographic The hockey goods market can also be segmented by psychographics, where the lifestyle of these enthusiasts is reflected by their passion for active sports such as hockey. As a psychographic classification, the sporty lifestyle of the hockey enthusiasts who choose to play the game, apart from enthusiasts who just love the game is a major segmentation criterion. d) Behavioral The market can further be segmented by the hockey enthusiasts’ level buying behavior, frequency or relative amount willing to spend for hockey goods and their dedication to buy new hockey goods for a given period of time. 2. Primary market The primary market for Reebok CCM hockey goods are young people with ages 12 to 20, hockey enthusiasts and plays hockey as their major sport. 3. Secondary market The secondary market is comprised of a broader market of young people with ages 12 to 20, who may not play hockey as their major sport, but are hockey enthusiasts who may want to try, and therefore buy the hockey goods offered by Reebok. C. Marketing objectives 1. Need-satisfying objectives 2. Long- and short-term sales target objectives D. Marketing mix for each target market 1. Product For the primary target market, the hockey goods that Reebok offers include skates and sticks. The skates and sticks that are marketed under the U+ or You Plus product line offer good technology and various functional benefits that enhance the experience of the hockey player who uses it. This line allows better handling, accuracy and power for the player, which is the major advantage that is sought by the consumers. The benefits cater to the two different markets—one which emphasizes the professional performance which is for the long-time hockey players, and the more basic products which are for the secondary market. The product line includes skates, sticks, shoulder pads, shin pads, and carry bag. 2. Price The company’s pricing for the hockey sticks range from $90 to $190. The price varies depending on whether the stick is made for junior hockey players, intermediate or pro—offering different benefits and experiences, with the more expensive products for the primary market, and the less expensive products for the secondary market who may start with the basics. The skates are priced from $150 to $530, same with the sticks that offer different benefits depending on the player’s game requirement. The other accessories such as the shoulder pads, shins, carrying bag, etc comes in sixty dollars or less. 3. Distribution The company has retail stores which are dedicated to selling hockey goods. The company has a network of dealers which carry the Reebok CCM product line in the two countries. Aside from these, the company commissions many online sellers where the goods are available for order, then shipped to the consumers’ location. 4. Communication Communication comes in the form of sports sponsorship as well as advertising in order to relay the message to the two target markets. The current advertising campaign which emphasizes the ‘being part of the consumer’ hype by using images of veins, tendons and muscles in the product layouts cater to the primary market, and emphasizes the products’ being part of them. As for the secondary market, these are the customers who should be acquired first before they belong to the primary market. While the communication for the primary market also balances the need for retention and acquisition, the secondary market needs to be enticed to play hockey in order for them to buy the products. E. Intended role of advertising in the communication The advertising’s role in communication is to create an image of the brand, more like for awareness and reinforcement purposes of the campaign. By making the consumers aware of the new products’ technology through the advertisements’ catchy images and phrases, these also serve as reinforcement to the brand as it creates association of the brand with its goal to become part of the consumer. II. Advertising objectives A. Primary or selective demand As Reebok aims to capture more of the secondary market and turn them into primary market because they offer a lot of opportunities in the process, the advertising campaign aims to cater to selective demand. B. Direct action or indirect action The advertising campaign aims to stimulate indirect action on the part of the consumer. The purpose of the advertising campaign is to make the consumers aware of the products and the benefits of the products, feel good about the products, become curious about the products which will result to some action in the process. C. Objectives stated in terms of 1. Advertising pyramid From the bottom of the pyramid objectives can be expressed as follows: for awareness, knowledge or comprehension. An objective can be increased product awareness among the 70% of the target market, and knowledge and comprehension of the benefits to among 50% of the target market. As it goes up, action or purchase among 30% of the target market, regular use among the 15% of the target, and 5% of the target market to become advocates of the brand. 2. Purchase behavior The objectives can also be stated in terms of the purchase behavior. As the consumers recognize the problem and think about it, 70% will have the brand for their awareness set and consider the benefits. While 50% of the target will move to the feel level with good associations with the brand, the brand is aimed to be at their evoked set. Lastly, 30% of the target market should consider choosing Reebok CCM and move to the ‘do’ or action phase. D. Quantified expression of objectives 1. Specific quantities or percentages As mentioned earlier, 70% of the market is aimed to become aware of the product and the brand, and as the objectives are written up the pyramid, 50% of this target market is aimed to have good associations with the brand and consider making purchase, and lastly, 30% of the market is targeted to make the actual purchase. 2. Length of time for achievement of objectives These objectives are for the short-term, where the advertising campaign aims to achieve corporate objectives for the given year. While there will be longer-term objectives such as strengthening the company’s reputation, the Reebok brand is already well established and the focus is on introducing the product line to a greater part of the market to induce growth in sales. 3. Other possible measurements a) Inquiries b) Increased order size III. Advertising (creative) strategy A. Product concept—how the advertising will present the product in terms of 1. Product or market positioning The advertising campaign will target to communicate two sets of benefits to the consumers: functional benefits, as well as emotional benefits. The functional benefits will include the new technology that the new products utilize in order to improve the performance of the person using it. The emotional benefits will include the “You Plus” concept which aims to make the consumers feel the products part of them, which makes them better in the process—both in their performance and the added confidence that it brings. These sets of benefits will be highlighted in the advertising campaign. 2. Product differentiation The unique selling proposition of the product will include the product’s new technology, making it a forerunner of innovation in the industry. This will include both the functional and emotional benefits of the product, which will be encapsulated in the brand’s slogan “it’s you, but better.” 3. Life cycle The product’s life cycle, because of the obsolescence of new technology, has to be short-lived, making it something like 3-6 months in the market before a new product has to be introduced. This is because the product needs to be kept on improving, and the company innovating in order to stick to its positioning. Also, the speed of competition will determine the technology this product offers, which needs to be updated in the short period. 4. Classification, packaging, branding The products will be classified under the sporting and athletic, as well as sporting and recreational products. The product line will come with the packaging reinforcing the advertisement’s message and images. As earlier discussed, the branding for this product will utilize the same You Plus product brand under the Reebok brand in order to leverage the trust of the Reebok brand as an established entity in the sports and athletic goods market. 5. Kim-Lord grid purchase-decision position a) High/low think involvement The perceived financial risk regarding this product will entail the think involvement that is associated with the purchase. Because the product line comes in some hefty price tags for sporting goods, the think involvement is high as the perceived financial risk is high. b) High/low feel involvement The perceived social risk regarding the product determines the relative feel involvement that is associated with the purchase. As the product line entails a degree of social risk, the feel involvement is high for the product. The additional association that has implications with social risks makes the feel involvement higher in the process. B. Target audience 1. Detailed description of the target audiences a) Relationship of target audience to target market The target audiences include the target market itself, who are the information gatekeeper and decision-maker in the process as well as influencers in the decision-making process. For the younger people who could not afford the products themselves yet, they could play the role of information gatekeepers and major decider, while the buyer can be their parents in the process. Influencers include the sources of information for the target market, which are not limited to friends, older family members, and early adopters in peer groups as well as coaches. With the target market being comprised of the younger generation, most influencers are older people who may give insights in choosing the products for them. b) Prospective buying influences The prospective buying influences, aside from the influencers include opinion leaders such as coaches, sports celebrity bloggers, sports writers, etc. Third-party reviews such as editorials will also influence the target market as regards the purchase. c) Benefits sought/advertising appeals The primary target audience being the target market will likely respond more to vivid imagery as these are people from the younger generations. Also, as the functional and emotional benefits are reiterated earlier, advertising could appeal to their sense of self which is better in doing things that they love, such as their sport like hockey. d) Demographics The primary target audience will be comprised of the same demographic of the target market—both the primary and the secondary. The secondary target audience will be the influencers, people who are older than the target market—people these younger generations look up to as regards insights for such purchase decisions which may range from 20-45 in terms of age. e) Psychographics As the primary target audience is also the target market, the same psychographics apply. As for the influencers, these are more likely sports enthusiasts and sports hobbyists who may have played hockey in their younger years and still enjoy watching it. These people have active lifestyles and get more information as regards purchases, which could aid the target market in the process. f) Behavioristics As the primary target audience is also the target market, the same behaviouristics apply. As for the influencers, these people could be past users and brand enthusiasts of Reebok, who could attest to the performance of the brand, since the product may not have been available when they played hockey when they are younger. Those who have formed a certain trust in the Reebok brand will likely advocate the CCM product line to the target market. 2. Prioritization of target audiences a) Primary The primary target audience is comprised of the primary and the secondary target market. This primary target audience is the information gatekeepers and decision-makers in the process. They are also the buyers, although for the younger people who could not afford the products themselves the buyer could be a separate entity, such as their parents, guardian or older siblings. b) Secondary The secondary target audience is the influencers. While the target market acts as the information gatekeepers, influencers can give weight as to which information the target market will utilize for the purpose of deciding for the purchase. c) Supplementary The supplementary target audience, for the younger people who could not afford the products themselves is the buyers—the parents, guardians, or older siblings who will take care of the money that will be spent by the target market. This group should also be targeted as the target market will convince this group about the value for the money that will be given to them as regards purchase. C. Message execution Advertising will be implemented through its current media—the print and television advertisements which are aimed to cater to the primary target market. Advertisement in nontraditional media can also be utilized such as SMS services, as well as online advertisements. In the company’s website, mini hockey video games could be featured, where players can choose to wear the products and see and experience the benefits of the products during the simulation game itself. This will both reinforce the brand as well as give the target market complete idea about how the products are going to function in real life. As regards the secondary target market, non-traditional marketing is necessary in order to induce them to try hockey and sell the idea of using the goods for the first time. In order to reach the secondary target market, event marketing can be utilized in places like fast food restaurants, which are mostly frequented by the target market. However, these fast food chains should be chosen on the basis of the brand’s consistency with the image of Reebok CCM. Through co-sponsorship of events that will happen in these chains, aimed at the secondary target market, the idea of getting the basis Reebok CCM for hockey enthusiasts to try on can be communicated. These events should also be news-worthy, in that they will be able to get the benefits of additional publicity without having to resort to additional costs for advertisements. News-worthy events in the form of publicity stunts too for Reebok CCM will help generate viral marketing and word-of-mouth, at least for the product which could increase overall awareness. The utilization of website could be another medium to utilize, when after the target market becomes aware and gets curious about the product and brand, more support is available online. This could speed up the decision-process as the target market gets more information in less time. As for the influencers, these people are less attracted to vivid images and lofty words as they have more experiences about purchases all in all, as well as sports or hockey itself. Therefore, credibility of the product is necessary in order for the influencers to believe a claim of the product, which can then be passed on to the target market. This can be accomplished in the form of publicity, or editorials, third-party product reviews, press releases and testimonials from previous users. By incorporating the presence of the brand through advertisement along with the credibility that public relation creates, the influencers will likely recommend the brand to the target market. As for the buyers, these people are looking for value for money that they aim to spend for the target market’s decision. Like the influencers, they need credibility of the claim and may less likely be receptive to advertisements. Therefore, the same marketing communications execution strategy can be used to communicate to this set of target audience. Bibliography: www.bauer.com. 13 Sept. 2008 Read More