Reebok

Reebok segmentation, targeting and positioning best when Reebok introduced the Freestyle aerobic shoe that supported three trends that transformed the athletic industry: the aerobic exercise movement, the influx of women into sports, and the acceptance of well-designed athletic foot-ware by adults for street and casual wear. By 1992, the Freestyle had become the best-selling athletic shoe of all time. This was a best move by branching into fitness, sport and casual wear, Reebok able to increase its sale up to 3 billion.

An umbrella campaign is necessary in order to create a global identity and to unify the different brand images across the different product categories. A greater message consistency around the world would help to develop a unified brand image and improve the cost effectiveness of Reebok advertising. For the US market the campaign might be appropriate. However, for European markets the campaign needs more local adaptation, since the brand has a much higher customer-loyalty as a European/British brand with a feminine, fashion oriented, elegant and stylish image. The campaign should built on these brand-assets rather than trying to reposition Reebok’s image toward a position which is already occupied by Nike. The campaign as it is bears some potential risk to confuse loyal European customers and draw them away to competition, which occupies a clearer positioning.

Europe, since it was Reebok’s largest regional market outside North America, representing 65% of 1992 international sales. Also current customer satisfaction especially in Europe was built by successfully establishing Reebok as a European/British brand. Although Reebok is in fact an American brand, the European headquarter succeeded in keeping the European perception based on Reebok’s British heritage and through the use of the Union Jack-logo. By this, Reebok was the only viable European alternative to German-based Adidas. For many European customers, Nike has a too performance-oriented,...