Jul 20, 2007

Brand Health Check... Reebok's marketing has brand in identity crisis

It appears that Reebok, once a global iconic sportswear brand, is suffering from something of an identity crisis, and to date, the jury's out on whether it will prove to be terminal.

Brand Health Check... Reebok's marketing has brand in identity crisis

In 1979, it owned the premium space and was the sports brand that gave birth to the women’s fitness boom. Yet, despite a strong tradition of success, Reebok has been slipping behind key rivals Nike and adidas, with the later finally acquiring it in 2005 for US$8 billion.

Traditionally, Reebok’s strength has been its focus on various sports, particularly sponsorship of a multitude of household names.

It is the exclusive rights holder for apparel for America’s NFL and Major League Baseball, and boasts tennis stars Venus Williams and Amelie Mauresmo on the books, along with a host of footballers including Thierry Henry and basketballers like Allen Iverson and, of course, Chinese player Yao Ming.

Notably though, the brand has actively been repositioning itself away from sport into fashion, in a strategy some say appears to be doing more harm than good.

Rapper Jay-Z became the first ‘non-athlete’ to receive a signature shoe from Reebok, with the S. Carter sneaker became the company’s fastest selling shoe in company history, and rapper 50 Cent, Nelly and Miri Ben-Ari are all Reebok spokespersons with varied success, with actress Scarlett Johanssen one of the latest additions.

Its US$30 million ‘Run easy’ campaign has been panned for repositioning running as ‘fun’, away from the more traditional ‘goal-oriented’ platform.

The brand has additionally been charged with ignoring the women’s segment it once clearly dominated.

The recent news though that Reebok is reviewing five of its markets — China, India, Korea, Japan and Hong Kong — will prove interesting. In opting for a more cohesive brand approach regionally, it is in a critical position to redefine what the brand stands for — sport or fashion.

Although, with a US hotshop leading creative strategy globally, it remains to be seen whether this will be the tonic it so desperately needs in Asia-Pacific.

Sid Duguid, MD, Field Asia

The Reebok Factor: Just because a brand is well-known, it doesn’t mean it will sell. Reebok is a good quality product that no one wants. It isn’t cool enough.

In competition with Nike and adidas, Reebok’s previous marketing efforts amount to little more than running to stand still. The brand has struggled to own any market segment. The ‘Run easy’ campaign (aimed at casual runners) uses pairs of celebrity pro athletes going for a jog and having a chat! This campaign will resonate with anyone if they pick up on the why rather than the how people run/exercise. 

This is new territory for the brand as it finally addresses a socio-cultural message. Reebok is doing what Nike and adidas have done for decades, but they have taken a gutsy risk. It remains to be seen whether Reebok will own non-aspirational, casual exercisers. 

In parallel, Reebok’s launch of Scarlett Johanssen’s fashion line might not soar in Asia but fashion-lovers in the cooler Asian cities will rip them off the shelves. Great, but it is doubtful whether this alone can re-capture its image with women, who they have lost to Nike.  

Two key recommendations: Think fashion over function, and Asian designers. Secondly, get technical.

Rob Campbell, regional creative brand planning director, Y&R 

There are two key issues. What Reebok is as a brand, and what sport means in Asia.
If I take the first issue, one of the key factors is that I don’t know what Reebok is anymore. I know what it used to be, which was a authentic sports brand, however with the recent US campaign where they used non-sport-associated famous people, they seemed to be going for a kind of leisure brand positioning. Very confusing.

The other issue is what sport means in Asia. The reality is that sport is more an activity that people observe than participate in, so with that in mind, you have to ask who the Reebok brand is going to target and tap into, especially as the market is so well catered for by adidas and Nike.

Is it heading in the right direction taking a regional approach? It has little or no option as Asian culture dictates brands must have a level of group acceptance and be a major player, so the goal is to find a position for Reebok to stand for something in Asia that is truly motivating, rather than being a cheap alternative to Nike and adidas.

Reebok is a brand that still has a great name, but how it will become more relevant and how it will resonate with people will be a challenge.

Source:
Campaign Asia
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