Reebok is an American brand. It is a private company and functions as a subsidiary of Adidas since 2005. The brand offers footwear, apparel, accessories, sportswear, sports equipment, etc. It is one of the most famous sports brands in the world. The brand is one of the largest clothing manufacturers in the world. The brand has global recognition and distributes its products in more than 28 countries. Many renowned athletes and teams have partnered with Reebok giving it the status of the most admired entity of the world. It offers products for fitness, running, and CrossFit sportswear including clothing and footwear. The brand has incorporated strength and credibility from its heritage in clothing.
This article highlights the historical background of this brand, its unique characteristics, branding and marketing strategy, etc. The article will also provide various stats and the reasons for the success of this brand.
HISTORICAL BACKGROUND OF REEBOK
It is an American sportswear company. The headquarters of the company is in Boston, USA. It was founded by Joseph William Foster in 1895. He started from his own house and his father’s sweet shop in Bolton, England, and made unique spiked shoes to announce himself. He made significant progress and came up with quality sports products for athletes. The most important product was the spike shoes that became famous around the world. In 1958, Joe and Jeff Foster formally incorporated the company. Many argue that the company was formally founded in 1958 by these two brothers. They were the grandsons of Joseph William Foster.
Both had to face copyright issues for launching the name ” Mercury” for one of their products. They formally chose Rhebok, a species of African Antelope which later became Reebok. Till 1978, the company continued to produce its famous spike shoes and generated handsome revenue by selling them. The headquarter of the company was based in England.
REEBOK AND PAUL FIREMAN
In 1979, during the Chicago International Sneaker Trade Show, Paul Fireman, an American businessman became impressed with the sneakers offered by the company. He formally acquired the license of the company in 1979 to offer the products of the company in the US market. The investment turned the fortunes for both the company and Paul fireman as the company started to generate roughly $1.5 million in 1981. Thus, the investment proved to be the most beneficial and rewarding for Paul.
In 1982, the company introduced the first shoe variety for women. It was called Reebok Freestyle aerobics shoe and was the first athletic shoe for women. In 1983, the company was able to generate sales of 13 million dollars. The company diversified its range of products and offered them to basketball and other sports. Paul Fireman formally became the owner of the company in 1984. The brand also stepped into new markets and started making its name in tennis with the Newport Classic, popularized by Boris Becker and John Mc Enroe, and the Revenge Plus, better known today under its name Reebok Club C. It launched its new logo in 1986.
The company was now making different kinds of sports accessories and was able to generate a revenue of $1 billion in 1989.
The brand signed many atheltes and collborated with many sports teams for its branding strategy. It:
- Signed Venus Williams, a famous tennis player in 2000
- Entered into a sponsorship agreement with the NFL.
- Became the official sponsor of outfitters for 29 teams of NBA in 2001.
- Achieved success to add its vector logo on the uniforms of the basketball team 2004 U.S. Olympics.
- Was acquired by the Adidas group in 2005.
- Entered into a partnership with CrossFit, a fitness company and competitive fitness sport, in 2010.
- Entered into a partnership with Les Mills, a group fitness and team training program in 80 countries in more than 20,000 studios in 2013.
- Phased out its vector logo and introduced delta sign, the second of its kind since the launch of the company.
BUSINESS MODEL OF REEBOK
It has diversified itself by offering other daily use items like handbags, perfumes, , apparel, footwear, and many other products. The brand also produces ready-to-wear and leather accessories. Another feature of the business model of the company is that it has not concentrated on a single product for its brand identity. It has used retailing and freanchising strategy as coare part for its business model.
CURRENT BRAND IDENTITY OF REEBOK
It has more than 268 stores worldwide and a presence in more than 28 countries at present. The brand has a logo with a delta sign with an aim to show agility, resilience, innovation, and a vision to become one of the leading sports clothing and accessories company. As per the company, it is also a symbol for a new way of life and at its core, represents a change.
The company aims to become one of the fastest and most advancing sports and lifestyle brands. The brand also aims to create innovative, advancing products and replace them with outdated and traditional designs both of its past own products and giving a tough time to its competitors.
MARKETING MIX OF REEBOK
The brand uses a skimming strategy to offer its produts to a wide range of customers across the world. Since last couple of years, it has shifted its focus from retailing and franchising methods to use modern digital means of communicatation to create a brand visibilty across the globe. To understnd in details, here is a marketing mix of Reebok:
It offers sports accessories including clothing, shoes and other products. Most of its products are of premium quality. It makes products for different sports loving youth and has made its different products for many professional teams throughout its history.
It uses a skimming strategy for pricing. This means it offers its products at a low price in starting and later, it charge them at premium rates.
It uses retailing, franchising and digital means like its website to target different customers across the world. It has promoted its products through magazines, celebrity endorsement, sponsorships etc.
It is based in Boston, USA, Popular in North America, the brand has also a huge market share in Hongkong, India, Canada, etc. Many developing economies of the world also witness the products offered by the brand at present.
MARKETING & ADVERTISING STRATEGY
The brand is using channels like social media, online advertising, billboards, TV commercials for promotion campaigns. Time and again it has come up with new slogans like:
I am what i am
Pain is temporary, Reebok is forever.
Have fun while running.
Go to the gym with you.
For ad campaigns it has used:
- Social Media
It has also sponsored many sports events like:
- Davis Cup
- Spartan Race
Founder: Joseph William Foster & Joseph William Foster
Headquarters: Boston, Massachusetts, U.S
CEO: Matt O’Toole.
Holding Company: Adidas
Revenue: 1.75 billion euros
Reebok has all the elements to continue as a leading brand. Over the years, it has diversified itself by introducing different range of products and improving its distribution channels. It has since 2005, also work closely with many leading athletes and sports teams to establish a strong brand identity. It understands that clothing industry is challenging so it has grwon into different markets of the world by offering accessories that are best quality products. In short, it is one of the best sports and clothing brand of the world at present.