Strategic Marketing Managment of Reebok - Case Study Example

Case Summary Changing the market according to relevance and expectations is one of the driving forces of any corporation. The case study of Reebok shows that there are specific aspects that are leading to changes as a part of the company and the brand name. Tapping into specific target markets and benefiting from the demands that are a part of the corporation are helping Reebok to continue to expand its products. In the current case study of Reebok, there was a redefining point of the marketing strategy that is being used for the company as well as specific demands that are being used to create an alternative marketing plan to reach to different individuals that are within the market. The case study of Reebok first shows that the basic demands were from specific demographics. Women that were interested in aerobics and men that wanted comfortable footwear were the main focuses with the emergence of Reebok. However, the company found that this specific demand led to minimal increase in the growth of the corporation. Focusing on older individuals who might want to change their shoes is one that led to less demand. Instead, Reebok changed the approach to focus on a younger market, specifically by targeting urban youth. The company began to use commercials and innovations that were based out of famous rap stars, all which were hired to target teenagers and youth to wear the shoe not for athletic styles, but instead as a fashion statement that was a part of pop culture. Since the emergence of the new marketing strategy, Reebok has found different areas of growth and advertising for the company. They have incorporated different stores that focus on providing specific types of shoes for youth. However, this has been followed by different needs by the retail areas. The youth demand more styles of shoes to be seen on a continuous basis, which has led to growth of production. There are also changing approaches to marketing, such as shoe releases that are hosted by musicians and different events that cater to youth becoming loyal customers to the Reebok Corporation. To continue with this, Reebok is now placing in new styles and trends that are specifically focused on urban youth and which provide youth with a specific expression. The company expects that this advertising campaign will help the youth to remain loyal to the shoe brand through later years while helping with an emerging market that no other shoe companies are focused on. Analysis of Marketing Strategy and Theories The strategy that Reebok has decided to use is one that is effective because it is moving into an untapped target market. The focus on urban youth as the basic structure for the market was able to provide continuous growth of the company. More importantly, the ability to tap into pop culture and associating music with shoes is allowing the youth to create different styles. For most that are a part of urban pop culture, this is providing a different expression that continues to expand. Another part of the strategy that is effective is changing the brand identity to RBK. Tapping into the pop culture from this perspective is helping with a different level of communication for youth. From this specific approach, Reebok has been able to move into a specific region of demands for shoes. More importantly, they have found a target market that is outside of their competitors, which is leading to substantial growth within the corporation. The strengths that are associated with the strategy of Reebok also are creating new opportunities. Since the target market is based on a generation, there is the ability to continue to expand the market. Most products are known to have a life cycle which ends after the demand begins to diminish. However, Reebok can continuously tap into lifestyle options with the urban youth. At the same time, they are creating loyal customers that will be interested in the style of Reebok after their youth, which provides a different set of alternatives for Reebok. While Reebok has been able to create specific strengths and opportunities, there are also weaknesses and threats to the way in which they are approaching this strategy. The target market is focused specifically on urban youth that are interested in one form of pop culture. This instantly stops others from buying the shoes if they associate with the brand from this same perspective. Other loyal customers, such as those from the past, may not be as likely to continue to use Reebok. More importantly, other youth and segments of the market may associate with the rap artists and may decide not to buy the shoes because of the image that has been created from the shoes. For Reebok to continue to strategically grow, they will need to find other forms of expression outside of urban youth. Strategy of Reebok a. The main strategy of Reebok began to change because of the inability to find enough demand in the older commercials and marketing. In the video, it was stated that it was less likely to get a 30 year old to change their shoes that they knew were comfortable, especially for aerobics. At the same time, there were other leaders in athletic shoes that caused Reebok to be a part of the main demand. The positioning strategy that they used was to go outside of the normal reasons and practical demands for buying shoes. Moving into an untapped market and creating a new image was then able to change the demand and moved Reebok outside of their main competition. b. The segments that Reebok continues to target is based on the idea of urban youth. There are some parts of the brand that are moving into other expressions of youth; however, the main approach is through the urban culture. The segment was chosen specifically to create a fashion statement and brand name with youth through the shoes. More specifically, Reebok was able to use the music industry, which most youth find as an important part of their expression. Using music stars was able to highlight the shoes as a part of the culture and as an element of the shoes. The segments were then able to develop not only a shoe used for basic needs, but instead created a style that is directly related to urban youth expressions. c. The strategy that Reebok used with different brand names and specialized collections is a sound strategy. From one point of view, Reebok has a strong brand that has lasted through the inception of the shoes. However, segmenting the brand to move into different target markets is able to offer more alternatives for youth and draws different types of target markets to specific brand names. More importantly, it is able to create different levels of awareness that increase the amount of demand for the shoes. If different segments recognize the specialized names and brands, it will increase the interest in the main brand as well as in the smaller name brands. The cons that are associated with this brand strategy are that many of the target markets may not recognize the newer brand names and won’t associate it with Reebok. If there is not an association with the brand name, style and the comfort of the shoe, then there may not be a direct response to buy the shoe and to be a loyal customer to this brand. For the target markets, the segmentation may also stop others from deciding to buy the shoe because of disinterest in the new fashion statement that is specialized to urban youth. At the same time, there are several pros that are associated with developing this strategy. It can target new markets for the shoe and can help to increase production and popularity in one area. At the same time, those that are buying the shoe and recognize the smaller name will more likely become a loyal customer to the type of shoe, specific to that target market. Reebok will then have the ability to grow the types of target markets and styles that are associated with their brand. Recommendations For Reebok to continue to expand the market that it is working in there are several considerations to make. The first is based on the changing needs that are a part of being an urban youth as well as the segmentation that was chosen. Even though Reebok has found one strong target market, it is essential to continue to expand the product lines into other target markets so other types of shoes can begin to attract other types of youth or different generations. This will increase the product life line and will help the store to expand. The more that Reebok can focus on expanding target markets through the segmentation approach that has taken place with the urban youth, the more likely they will be able to reach different needs for those who are looking for brand name shoes. The second concept that Reebok can keep in mind as they continue to expand is based on the location of the shoes. Currently, the brand is specializing in athletic stores that attract urban youth. If Reebok decides to move into other target markets, it will also need to expand the availability of the shoes to attract more urban youth and to have different areas for the product line. Finding more areas where sales can take place and making sure that demands are met for those interested in the shoes can help to increase the product line and demands of the shoes. References Reebok. (2010). Reebok Case Study. Retrieved from: http://wps.pearsoned.co.uk/ema_uk_he_hollensen_globalmark_4/99/25521/6533615.cw/-/6533618/index.html. Read More