Reebok Case Study: "Reebok: In pursuit of Generation X"

Reebok Case Study: "Reebok: In pursuit of Generation X"

I. Using viral marketing, a new way to communicate

A. Definition of viral marketing

B. Advantage of using viral marketing instead of traditional media
C. Limitations and risks of viral marketing
II. 2003: Reebok and Terry Tate's buzz

. How to reach Generation X?

A. Terry Tate's advertising concept
III. What are the results of Terry Tate viral campaign

. Quantitative results
A. Qualitative results

IV. Abstract : Case study

V. Reebok is a large and technological footwear company founded more than 110 years
ago. Reebok’s history started in 1895 in the United Kingdom, and continued in the United States. It
became an international company at the end of the 80s. Today, Reebok’s products are sold in 170
countries. This global strategy helped the brand to match the performance of its main competitors:
Adidas and Nike. Reebok became one of the 3 market leaders, by sponsoring a lot of athletes and
anticipating new trends such as aerobics, sports for women, and casual fashion (using sport-shoes
everyday). Moreover, the company created new products, (apparels, T-shirt, bags), so they could stay
competitive and a step ahead of its two aggressive competitors. As athletic footwear represented 40%
of the total footwear sold, these two brands were taking away most of the market share. Moreover,
Adidas and Nike had a fashionable brand-image, which was not true of Reebokwhich was seen by the
public and customers more as a technical brand than “fashionable” one. Since 1990, Reebok has
been using strategic sponsoring of prestigious athletes, like a lot of other sportswear brands. In
2003, Reebok’s new marketing campaign changed the image of the company in the customer’s mind,
and their brand perception of Reebok. This new way of advertising was introduced to the company by
Micky Pant, who chose to communicate a new message, to a new target, which Reebok did not really
reach before, in a new and innovating way: viral marketing. This strategy is what we will study, by first
explaining the concept of viral marketing, and then studying Reebok’s new advertizing concept. Finally
we will analyze the results of this campaign.

Our society has evolved a lot in the last 20 years, particularly in terms of demography and new
technologies. Mentalities have also changed a lot, and we observe new consumer segments, with new
consumption needs. To keep abreast of these evolutions, brands have adapted their marketing
strategy. This is the case with viral marketing.

Viral marketing is a new way of using the internet to communicate. It is a kind of relational marketing
which is being used by more and more companies, as traditional media (billboards, TV, radio, cinema,
magazines) are over used and are becoming less efficient. Viral marketing is different from traditional
media as it puts internet users at the center of the communication process. Internet users, especially
the ones who are “bloggers”, are targeted by the brand, which use viral marketing to seduce them. It is
an interactive way of communication, because not only is the web user affected, but he also helps
spread the message by sharing the links, videos, and ideas with others internet users. The consumer
is not just the receiver; he can now become the transmitter. However, it is not that easy to make the
consumer take an active role in spreading the brand message. There are some important points which
must be implemented to ensure his involvement:

VI. More abstract from Reebok Case Study: "Reebok: In pursuit of Generation X"
VII. [...] CONCLUSION To conclude, we can say that Micky Pant can be credited to introduce a
new way of advertizing in Reebok Company. Terry Tate’s commercial has definitely been a
phenomenon all around the world, and succeed in reaching a huge and sought-after community, with
a high buying power: Generation X. Others videos has been released since the campaign.
Unfortunately, using viral marketing had as many good results as bad ones. Reebok brand image
gained in reputation and recognition, and stuck to its cool and hype image it wanted to spread, but, it is
more Terry Tate phenomenon which has been memorized than Reebok brand. [...]
 VIII.
IX. [...] In an IPSOS study, of the people who are less than consider that there is too much
advertising in the street, on TV, in the newspaper .Viral marketing is less expensive and can be a lot
more efficient, but only if it works well. The brand is first lost in between a lot of others brands but can
rise on the web very quickly. As the IPSOS study shows, buzz is one of the main way of
communication attracting consumer confidence : of the people asked say that recommendations
coming from their peers and community, whereas only would give their confidence to brand
advertising on - It’s a less expensive way to advertise than using traditional media Billboards, radio,
newspaper and cinema). [...]
X.
XI. [...] Terry Tate advertising concept Generation X members were in between and As we
studied in part one, viral marketing is very efficient beside the people who are in this age range. That
is certainly why Micky Pant chose this type of advertising. As we can read in the case, he studied a lot
this community, to know what would make them laugh, what exactly their aspirations were and how
they reacted in different situations. He highlighted that they were the ones who were most annoyed by
advertising everywhere, who were bored at work because they had a lot of work and didn’t seem to
agree with their job values. [...]
XII.
XIII. [...] They were born between and In “Education Week” defined Generation Xer’s as those
between the ages of and inclusive.” That means most of them were between and in We can easily
deduce that the first reason Reebok wanted to reach its target is that it represents nearly one fifth of
the US population. The second reason Reebok wanted to reach Gen X is because what gathers Gen
X member is not only their birthdates but also theirs behaviors, beliefs and rites: it is a real community.
[...]
Reebok's case:" In pursuit of generation X"

1. Micky Pant can be credited with introducing a novel (at the time) and innovative tool into
Reebok's advertising strategy. Viral marketing was at the time only superficially understood.
How would you explain this technique to an uninformed audience? To what extent does it
complement or replace traditional media e.g.; television, billboards, direct mail, etc.?

2. Evaluate the Terry Tate commercials. Did they increase recognition of Rebook's brand? Was the
central message effective? And memorable? Did it generate a sufficient level of positive
attitudes toward the brand?

3. Considering some of the traditional indicators of advertising effectiveness mentioned above, to

what extent should they be relied on in the Terry Tate - Reebok Case?

4. Is this type of communication capable of capturing the attention of Generation X consumers ?

Explain why or why not ?

Abstract : Worksheet
Nowadays, competition is between companies very important. It is very important to distinguish one's company
from the competitors, not only concerning the products but also advertising, in order to seduce the consumers.
The brand must be innovative in order to win market share and increase its profits. For Reebok, television was
the primary communication medium but nowadays, it is imperative to communicate on the internet and diversify
the media. Internet is a means of communication more and more used by companies in order to seduce the
consumers. The competitors of Reebok: Nike and Adidas will have to be more creative and more innovative if
they want to make a success of the strategy of viral marketing. Generally, companies have a website in order to
present their products and can propose online payments, collect information in order to create a prospect
database. From now on, the most effective means to increase the fame of the brand and win market shares is to
create a Buzz.