In this case study, we will be learning about the marketing mix of Reebok in detail. So, let’s get started with the company’s introduction.
About Reebok Company
Since August 2005, Reebok International Limited, footwear, and apparel firm has been a subsidiary of Adidas. The company manufactures and sells clothes and footwear for fitness, running, and CrossFit. CrossFit and Spartan Race both have it as their official footwear and gear sponsor.
The brand was formed in the United Kingdom in 1958 as a subsidiary of J.W. Foster and Sons, a sports goods firm founded in Bolton, Lancashire, in 1895. The firm’s roots were symbolized by the use of the British flag in its emblem from 1958 until 1986. With regional offices in Amsterdam, Montreal, Hong Kong, and Mexico City, the company’s worldwide headquarters are located in Boston, Massachusetts in the United States.
The organization announced in November 2016 that it will relocate its headquarters from Canton, Massachusetts, to the innovation and design complex in South Boston’s maritime neighbourhood. According to the firm, the move was made to “clarify the duties” of its US offices and to be placed in an urban setting that is more appealing to millennial workers. The relocation was completed in the fall of 2018.
Now that we have a basic understanding of Reebok as a company, so let’s get down in the business of learning about the marketing mix of Rebook.
Marketing Mix of Reebok
The four Ps of marketing is the most important aspects of promoting a product or service. They are the product, pricing, place, and promotion of a good or service. The four Ps, often known as the marketing mix, are influenced by both internal and external variables in the entire company environment, and they interact heavily.
The marketing mix assists a firm in selecting and deciding on an appropriate marketing plan. The marketing mix also aids a business in allocating resources and budgets to various areas of its marketing strategy and product development.
A firm may also use the marketing mix to select the most appropriate and successful marketing techniques for its promotional requirements.
Now we got the idea of why marketing mix is important. So now, let’s dive deeper into Rebook’s marketing mix.
4Ps of Reebok Company
Reebok’s Marketing Mix examines the company and describes the Reebok marketing strategy, which includes the 4Ps (Product, Price, Place, and Promotion). The brand’s success has been aided by a variety of marketing strategies, including product/service innovation, marketing investment, and customer experience.
Let’s start with the first P in the marketing mix section.
1. Reebok’s Product Strategy
Reebok is a global corporation that specializes in the development and sale of sports and fitness goods. Its portfolio includes a wide range of products for each demographic, including children, women, and men. The company’s major goods are sports-related accessories, clothing, and footwear.
Apparels have always been a motivating idea, combining fashion with athletics. To ensure optimum comfort, rich materials and technology have been combined. Fitted tanks, running shorts, and sleek, t-shirts for men are fashionable, useful, and odour-free. Jackets, polo shirts, and tracksuits are all part of the range.
Tank tops, shorts, t-shirts, training pants, and sports tops are among the product category available for women. Reebok Junior was created to create fashionable clothing for children that combined fashion and athletics. Always Classic and New Classic were the two categories under which Reebok Classics sold clothing, footwear, and accessories.
These are the products produced by Reebok. Now we understood the product strategy of the company, so let’s figure out its distribution strategy.
2. Reebok’s Place & Distribution Strategy
Reebok is based in Canton, Ohio, with offices in Mexico, Hong Kong, Canada, and the Netherlands. The construction and establishment of a unified retail environment in the distribution infrastructure have helped it build a strong brand identity.
The company has devised a concept for exclusive retail outlets in the retail business. Exclusive shops, factory outlets, and distributors are all available through Reebok. Professionals are hired by the firm to select the ideal site for their shop. Furthermore, the company’s financial condition is well-balanced, and the outlets are separated into limited-edition shops, super-sale shops, and one-of-a-kind shops. In India, Reebok operates a franchise system with over 1,000 outlets. In Hyderabad, it opened the world’s largest Reebok showroom.
The firm has fundamentally transformed the concept of selling thanks to its online buying method. They also have a presence on various e-commerce platforms and apps, such as Amazon, Flipkart, Myntra, and others.
Reebok sells its products globally with great fame. Let’s find how Reebok manages the pricing strategy
3. Reebok’s Pricing Strategy
Reebok has agreed on a uniform price approach to enter and capture the market. The firm established a penetrating price approach when it decided on its clothing division. Low prices were set as introduction costs, and when demand grew, the approach shifted to fair pricing rather than common pricing.
When a new product is introduced to the market, the brand adopts the market strategy of skimming policy first. The company set high pricing for its superior items as a result of this. Because customers identify this brand with quality, the value-added pricing method assists them in generating quick profits.
The firm uses its customer base’s loyalty to imply that higher costs are due to greater quality. The costs are then gradually reduced in the form of different programs and discounts. To combat the rising popularity of Puma and Nike, Reebok devised an unorthodox tactic of destroyer price policy in 2006.
The organization purposefully established extremely cheap pricing that other businesses were unable to match. As a result, they were able to increase their sales volume and gain a significant market share.
Now that we learned the pricing strategy of Reebok. Let’s finish this research of marketing mix with a promotional strategy.
4. Reebok’s Promotional Strategy
Reebok has launched a new promotional effort to assist customers in better comprehend its goods. Many athletes from the NBA, cricket, football, and racing were chosen as Reebok’s brand ambassadors to demonstrate the link between sports and fitness and the company’s product range. Reebok Advertising campaigns also choose actors and actresses.
Many sporting events, including the IPL, Davis Cup, Spartan Race, and others, have been sponsored by Reebok. The brand utilizes both physical and online advertising as part of its promotional strategy.
The company updated its logo in 2004 to reflect the positive impact that fitness has on people’s lives. To please its customers, it provides coupons, and products at lower prices. To demonstrate the exposure of its products, Reebok employs a range of offline media channels such as billboards, magazines, newspaper advertising, radio, and television.
The Reebok marketing mix is now complete. So, let’s end this case study with a summary.
Conclusion
Our marketing mix draws to a close with the final of the 4P’s approach. Reebok is a hugely successful corporation that has nailed both quality and diversity in its product offerings. The pricing is reasonable and tailored to its target demographic and industry. Because of the many decades of expertise, the company has a respectable geographic reach, as we observed.
The firm will undoubtedly maintain its prominent position in the industry as a result of its ongoing promotions and trademark branding.
Thank you for your interest in reading this case study. This case study should have taught you something new about Reebok’s marketing mix and presence.
If you are interested in taking up digital marketing, then do try the free Digital Marketing Basics masterclass by Karan Shah, Founder and CEO of IIDE to get insights into this industry.
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