The Marketing mix of Reebok analyses the 4Ps of Reebok, including the Product, Price, Place, and Promotions. Reebok is an international brand that deals in the equipment for the sports industry. J.W. Foster founded this global company in 1895 in England, and it later extended its network to different parts of the world. Since 2005, Reebok has been acting as a subsidiary company for Adidas. At present, Reebok has been able to carve a separate identity for itself that is associated with comfort, fashion, and a particular trendy image. Some of its competitors are-
- Nike
- Puma
- Adidas
About Reebok
- Type: Fitness footwear and apparel company
- Industry: Sportswear
- Founded: 1958
- Founder: Joseph William Foster
- Headquarters: Boston, Massachusetts, United States
- Area served: Worldwide
- Key people: Matt O’Toole (Chairman) and Todd Krinsky(CEO)
- Number of employees: Over 4,000
Table of Contents
Reebok Product Strategy
Reebok is a worldwide company that deals with the production, digital marketing, and later distribution of products related to sports and fitness. It has a wide variety of items in its portfolio for each segment, such as children, women, and men.
The new Product Mix of Reebok in 2023 is as follows (Source).
- Footwear: Reebok’s running shoes feature advanced cushioning and support systems suitable for long-distance running. The basketball shoes are crafted for maximum grip and stability, tailored for on-court performance.
- Apparel: The brand offers a variety of clothing items like shirts, shorts, leggings, and jackets. These are made from high-quality materials that provide comfort and durability, making them suitable for workouts and sports activities.
- Accessories: Complementing the apparel and footwear lines, Reebok offers accessories such as backpacks, hats, and socks. These products enhance the overall sportswear solution provided by the brand.
Reebok Place Strategy
Reebok has established its brand name and presence in the global market. Its headquarters is in Canton, USA, and its regional offices are in Mexico City, Hong Kong, Montreal, and Amsterdam.
Its most significant investment is in distribution infrastructure to create and establish a unified retail environment and uniform and fully international ambiance. As its products, all its outlets are also exclusive, creating a qualitative environment.
The brand has exclusive stores, outlets, and dealer outlets. They have hired professionals to choose the locations with the maximum visibility for their stores. According to the retailers, the stores are divided into Super-Special, Limited-Line Stores, and Single-Line Stores. Reebok has gone for a franchisee organization in India with more than one thousand stores in nearly three hundred and twenty-five cities. It has opened in Hyderabad, the most enormous Reebok showroom in the world.
Reebok’s place strategy demonstrates a well-structured approach to distributing its products and ensuring they are accessible to a wide range of customers. Here are the critical aspects of their strategy:
- Global Presence: Reebok has established a solid global presence, focusing on key markets in North America, Europe, and Asia. This broad geographical reach ensures their products are available to a diverse international customer base.
- Multi-Channel Distribution: The brand utilizes a multi-channel distribution strategy encompassing physical and digital retail channels. This includes company-owned stores, franchised stores, third-party retailers, and e-commerce platforms, offering various avenues for customers to access their products.
- Exclusive Retail Outlets: Reebok has created a concept for exclusive retail outlets, including exclusive shops, factory outlets, and distributors. This helps build a strong brand identity and gives customers a unique shopping experience.
- Online Retailing: Emphasizing the importance of digital commerce, Reebok has transformed its sales approach with a robust online buying method. The brand is also on various e-commerce platforms and apps, making it convenient for customers to purchase their products online.
- Partnerships with Fitness Studios and Gyms: Reebok collaborates with fitness studios and gyms in addition to traditional retail channels. This partnership promotes their products and creates unique customer experiences, enhancing brand engagement and community building.
Reebok Pricing Strategy
Reebok has decided on a standard pricing policy to penetrate and capture the market. The brand initially set up a penetrating pricing policy when it decided on its apparel section. Low prices were set as introductory prices, and as the demand started rising, the strategy changed to reasonable pricing instead of standard pricing.
In cases where the brand has launched a new product in the market, Reebok first follows the market strategy of skimming policy. Under this, they set high prices for their superior products. As consumers associate this brand with quality, the value-added pricing system helps them to make fast revenues. The company relies on the loyalty of its consumer base to communicate that quality is the reason for higher prices. It then starts slowly dropping the prices under the name of various schemes and discounts.
In 2006, Reebok came up with an unusual strategy: a destroyer pricing policy to tackle the growing popularity of Puma and Nike. They deliberately set meager prices that the other companies were unable to match. This led them to a higher sales volume and a significant market share.
Reebok’s pricing strategy is a sophisticated blend of market positioning and consumer value perception, tailored to maintain its competitive edge in the sportswear market. Here’s a detailed analysis of Reebok’s marketing here:
- Competitive and Value-Based Pricing: Reebok strategically positions its prices to be competitive with other sportswear brands while reflecting the quality and innovation of its products. This approach ensures the brand remains attractive to consumers seeking quality and value in their purchases.
- Diverse Price Range: Catering to a broad customer base, Reebok offers products at various price points. Entry-level items are affordable, making them accessible to budget-conscious consumers, while premium products with advanced features and technology command higher prices.
- Dynamic Pricing for Different Segments: Reebok’s pricing varies based on product type, material, design, and technology. This dynamic pricing structure allows them to cater to different market segments, from casual fitness enthusiasts to professional athletes.
- Promotional and Seasonal Pricing: The brand frequently employs promotional pricing strategies, including seasonal sales, discounts for students and military personnel, and other special offers. These promotions help attract and retain new customers, enhancing brand loyalty and market share.
- Skimming and Penetration Pricing: Initially, when launching new, innovative products, Reebok may use a price skimming strategy, setting higher prices to maximize profits from early adopters. Conversely, for expanding in new markets or product categories, they might use penetration pricing, setting lower initial prices to gain market share quickly.
Reebok Promotion Strategy
Reebok has gone for hi-fi promotional activities to familiarize the consumers with its vision and goals. It has been roping in sportspersons of various fields, for instance, in cricket Yuvraj Singh, Rahul Dravid, Dhoni, and Irfan Pathan, and in racing Narain Karthikeyan. It also supports Prakash Amritraj and sponsors the Davis Cup in lawn tennis. Actor Bipasha Basu has also been associated with Reebok ads. Reebok is also the sponsor of four IPL cricket teams in India, along with thirty-three of its players.
As a promotional scheme, Reebok’s marketing strategy makes a clearance sale twice yearly to clear out its old stock and make its consumers happy. It offers coupons, vouchers, and discounts on its items to satisfy its consumers. Reebok uses various other mediums to connect with the audience, like advertising online, on billboards, in magazines and newspapers, and on radio and television. Under the Direct-Interaction scheme, the company organized a Run-Easy Campaign; it encouraged the participation of the consumers and distributed thousands of footwear. Reebok also has various Tag Lines that have given their promotional activities a massive boost from time to time. Some of them are “I am what I am”, “Have fun while you run” and “Take the gym with you”.
Some Recent Video ads and Print ads for Reebok are:
https://youtu.be/aucICd1yoIk
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