Transcript Product/Service Features and Capabilities 0

+
Date:
By: Matthew
Sonnenfeldt
BUS 360 001
T
+able of
Contents
COMPANY OFFERING
PRODUCT/SERVICE 0
-Company Description 0
-Company Location(s) and Facilities 0
-Other Products/Services Offered
0
-Market Areas Sells To 0
PRODUCT/SERVICE BEING
MARKETED
0
-Description of Product/Service
-Product/Service Features and
Capabilities 0
-Product/Service Selling Cycle 0
0
MARKET OF PRODUCT/SERVICE 0
-Customers for Product/Service
0
-Why Product/Service Needed 0
-How Product/Service Used
0
-When Product/Service Bought0
PRODUCT/SERVI
CE POSITION 0
-Competitors
Offering
Products/Services
0
-Competing
Products/Services
Features/Capabiliti
es 0
-How
Product/Service
Better or Worse
than Competitors
0
-Products/Services
Market Share for
Each 0
PRODUCT/SERVICE
MARKETING
PROGRAM
0
-Overall Marketing
Program
0
-Product/Service
Promotion Program
0
-Product/Service
Advertising Program
0
-Product/Service
Branding Program
0
-Product/Service
Branding Program
0
-Product/Service Online
Marketing Program
-Improvements Might
Make to Program
PRODUCT/SERVI
CE MARKETING
CHANNELS 0
-Current
Product/Service
Marketing Channels
0
-Competitor(s)
Marketing Channels
0
Advantages/disadva
ntages of Current
Channels 0
-Possible Alternative
Channels 0
INFORMATION
SOURCES
0
Individuals
Web Sites
Other
COMPANY OFFERING
PRODUCT/SERVICE
Company Description
Reebok is a sports apparel and footwear company headquartered in Massachusetts. Though it
originates in the United States, it is a global brand that creates and markets sports and lifestyle
products built upon a core competency in sports, fitness and women’s categories. Reebok is
committed to designing products and marketing programs that reflect creativity and the desire to
constantly challenge the norms of the sports industry.
Company Location(s)
Reebok has two main locations in the world:
Reebok World Head Quarters - 1895 J.W. Foster Boulevard
Canton, Massachusetts
Reebok Canada – 3400 Raymond-Lasnier
St. Laurent (Quebec)
+
Other Products/Services Offered
Other than running shoes, Reebok sells all sorts of other shoes from basketball to casual shoes.
Reebok also sells a good amount of exercise apparel and equipment in order to maximize the
output that its customers obtain in their exercising. Reebok has had long term relationships with
the National Football League, National Basketball Association, and National Hockey League, which
allows them to market all of the apparel associated with the different professional sports teams.
Recently their contract ended with the NFL and now Nike has taken over the sales in that sect of
the market.
Market Areas Sells To
According to Patrick Joyce, Senior Manager Global Sports Marketing at Reebok International,
Reebok currently sells to customers who are the overall fitness minded consumers. This is a
person that would do a variety of fitness activities during the week no matter what those activities
may be.
Product/Service Being
Marketed
Description of Product
Reebok running shoes consist of several different types of models. The models include: EasyTones, ZigTech,
RealFlex, and different Stability, Neutral, and Minimalist models. The EasyTones are a shoe that has two points
on the bottom of the shoe that are rounded to promote toning and definition in your legs and thighs. ZigTech has
multi directional cushioning which delivers spring as you step and providing energy return. The shoe also has
natural flexibility to add to comfort and efficiency. The RealFlex line that Reebok developed promotes
minimalist characteristics that lean towards more naturalist running. The RealFlex has lightweight materials and
minimalized material used to also add to the minimalist approach to the running shoe. The Crossfit marketing
plan revolves around the benefits of wearing the Reebok RealFlex. The Stability shoes are meant for those
people who need more support than normal, the Neutral shoe is meant for those that have a neutral and
balanced foot, and the minimalist shoes are meant for those going towards a naturalist running strategy.
Features and Capabilities
The features and capabilities of the Reebok EasyTones include balance pods on both the heel and ball of your
foot. These balance pods transfer air along the shoes creating micro-instability, which causes the muscles in
your legs and glutes to work harder and gain strength. The features and capabilities of the ZigTech are
lightweight components and a high-tech zig-zag styled bottom to the shoe. The specialty associated with the Zig
bottoms of the shoes is they transfer energy both up and down and side to side on the shoe. This gives users
more energy transfer and helps the user reach a new athletic performance. The Zig also allows for a more
natural flexibility through the many movable surfaces on the bottom part of the shoe. The capabilities of the
RealFlex are the lightest materials, ultimate flexibility, and natural movement. These capabilities are achieved
through the implementation of independent flex nodes all over the bottom of the RealFlex shoes. These nodes
allow the shoe to move in any direction and motion that the foot is able to move. Through adding to these nodes
on both the forefoot and the heel Reebok has managed to offer natural motion and minimalist ideas without
losing foot protection, support, and stability.
+
Product/Service Life Cycle
The life cycle of running shoes has been debated over the years and there is no specified time period one
should have a pair of shoes for. The best approximation that I have found is that running shoes should be
replaced every 300 to 400 miles of wear. The time that it takes to complete these miles is completely irrelevant,
but after 300 to 400 miles the shoe will begin to break down and cause the body harm and trouble.
COMPANY OFFERING
PRODUCT/SERVICE
Competitors Offering Products/Services
The competitors that offer similar products as Reebok are other athletic shoe companies. The companies which
are Reebok’s main competitors are Nike, New Balance, Saucony, Mizuno, Puma, Brooks, Sketchers, and Vibrams.
Another competitor that is not included in the list is Adidas because Adidas AG actually owns Adidas and
Reebok, so the profit of both brands ends up going to the same corporation.
Competing Products/Services Features/Capabilities
The competitor’s alternatives to Reebok shoes vary according to the different companies that offer them. Nike is
known for its innovation in its shoes and products. Nike running spikes were the first to incorporate their
superlight material called Flywire. Through the introduction of the Flywire Nike has dominated the running
industry. Nike also introduced their Nike Frees that incorporate a new light weight free motion design that led
the shoe movement towards this new minimalist shoe era that dominates the market today. Nike also has
dominating fashionable basketball shoes. New Balance, Saucony, Mizuno, and Brooks also offer a similar type of
product; their running shoes are all competition to Reebok’s running shoes and offer high quality alternatives to
them. Vibrams are a super minimalist shoe that offers a minimalist alternative to the Reebok RealFlex.
How Competing Products/Services Different
+
The competing products on the market are different from the shoes that Reebok offers, varying from extreme to
minute differences. The Nike Flywire is a fabric patented by Nike that is super lightweight compared with
Reebok spikes. New Balance, Saucony, Mizuno, and Brooks offer very similar products to Reebok’s shoes. The
Vibrams differ in being a completely different shoe. The Vibrams have a sock like shape and are the most
minimalist shoes on the market.
Competing Products/Services Evaluations
Reebok’s shoes are some of the leading shoes seen on the market today. The main shoes that Reebok has
introduced that dominate the others are its Zigtech line as well as the Reebok Easytones. The main competition
to the EasyTones is the Sketchers ToneUps, which are a similar shoe that is supposed to help sculpt your legs
just as the EasyTones do. The Nike Frees is a more successful minimalist shoe when compared to the Reebok
RealFlex. The Nike Frees was the first of the minimalist shoes and thus captured most of the market from the
beginning encapsulating most of the buyers. Vibrams offer the extremist, purist type minimalists the ultimate
natural running experience, which no other shoe brands have tried fully to encapsulate. The market is a lot
smaller, so it seems that the other companies do not find it to be worth exploiting.
Market of the Product/Service
Customers for Product/Service
The customers of the Reebok running shoes at the most basic level are people that run. Furthermore, people
who exercise and participate in different levels of physical activity also are customers for Reebok running shoes.
The customers consist of all different ages and range from small to large amounts of running and physical
activities. The customers are fitness minded individuals who on a whole participate in exercise several times a
week.
Why Product/Service Needed
The customers need and want Reebok running shoes for several different reasons. When looking for running
shoes people are looking for comfort and style, both which Reebok running shoes have. One aspect that is
overlooked when analyzing customer behavior is the customers’ expectations of the running shoes. When they
see someone on television in a great state of fitness and looking great, they are seeing an image of what they can
possibly become. If they get the Reebok running shoes, then they will be able to look like that, be muscular and
in shape. Reebok running shoes become the customers’ transportation to a better, fit self.
How Product/Service Used
+
The customers use Reebok running shoes to wear when running, exercising, or participating in any type of
physical activity. They are laced up right on the feet and are ready to be run around in. The customers then use
the shoes when they are exercising and trying to gain fitness or workout.
When Product/Service Bought
There are several different circumstances and times when Reebok running shoes are bought. When the Reebok
EasyTones were released sales went ballistic with women buying these shoes in order to get a better looking
figure. Therefore, releases of new products marks a heavy buying period for Reebok’s customers. Another time
when people buy Reebok running shoes would be at the beginning of different sports seasons. When people
begin playing a sport they need to get new shoes to wear and practice in. Seasonally, the time of year when
most people buy running shoes is in the spring. Most people see the great weather begin to come out and know
that beach season is right around the corner, so they begin to exercise to enjoy the fresh air and to get their
bodies into shape for the beach. Another time of the year when Reebok running shoes are bought is around
Christmas and New Years. Many shoes are purchased before Christmas as gifts for family members and friends.
Most people buy new running shoes right after New Year’s because they make their New Year’s resolution to get
in shape this year. Hence, those people go out and buy new Reebok running shoes in order to be able to fulfill
their resolution.
Product/Service Position
Competitors Offering Products/Services
The competitors that offer similar products as Reebok are other athletic shoe companies. The
companies which are Reebok’s main competitors are Nike, New Balance, Saucony, Mizuno, Puma,
Brooks, Sketchers, and Vibrams. Another competitor that is not included in the list is Adidas
because Adidas AG actually owns Adidas and Reebok, so the profit of both brands ends up going
to the same corporation.
Competing Products/Services Features/Capabilities
The competitor’s alternatives to Reebok shoes vary according to the different companies that offer
them. Nike is known for its innovation in its shoes and products. Nike running spikes were the
first to incorporate their superlight material called Flywire. Through the introduction of the
Flywire Nike has dominated the running industry. Nike also introduced their Nike Frees that
incorporate a new light weight free motion design that led the shoe movement towards this new
minimalist shoe era that dominates the market today. Nike also has dominating fashionable
basketball shoes. New Balance, Saucony, Mizuno, and Brooks also offer a similar type of product;
their running shoes are all competition to Reebok’s running shoes and offer high quality
alternatives to them. Vibrams are a super minimalist shoe that offers a minimalist alternative to
the Reebok RealFlex.
+
How Competing Products/Services Different
The competing products on the market are different from the shoes that Reebok offers, varying
from extreme to minute differences. The Nike Flywire is a fabric patented by Nike that is super
lightweight compared with Reebok spikes. New Balance, Saucony, Mizuno, and Brooks offer very
similar products to Reebok’s shoes. The Vibrams differ in being a completely different shoe. The
Vibrams have a sock like shape and are the most minimalist shoes on the market.
Competing Products/Services Evaluations
Reebok’s shoes are some of the leading shoes seen on the market today. The main shoes that
Reebok has introduced that dominate the others are its Zigtech line as well as the Reebok
Easytones. The main competition to the EasyTones is the Sketchers ToneUps, which are a similar
shoe that is supposed to help sculpt your legs just as the EasyTones do. The Nike Frees is a more
successful minimalist shoe when compared to the Reebok RealFlex. The Nike Frees was the first
of the minimalist shoes and thus captured most of the market from the beginning encapsulating
most of the buyers. Vibrams offer the extremist, purist type minimalists the ultimate natural
running experience, which no other shoe brands have tried fully to encapsulate. The market is a
lot smaller, so it seems that the other companies do not find it to be worth exploiting.
Product/Service Position
Cont..
All of the products that the market shares are:
Reebook
EasyTones
RealFlex
ZigTech
UltimateVibe
YourFlex
SolarVibe
Premier
Classic
Nike:
Free Run (Frees)
Shox
Lunars
Victory
Matumbo
Zoom
+
New Balance
Stability
Motion Control
Cushioning
Minimus Road
Mizuno
Wave Series
Musha 4
Saucony
Hurricanes, Mirage
Stabil, Cohesion
Guide
Crossfire
Cortana
Triumph, Ride
Omni
Ignition,
Brooks
Pure
Trailblade
Ghost
Green Silence
Adrenaline
Product/Service
Marketing Channels
Current Product Marketing Channels
Reebok’s marketing Channels are print, digital media, and
television. Reebok uses magazines, banners, running websites,
the internet in general, and television plugs and commercials as
their marketing channels. On the internet Reebok exploits
exercising websites and running forums to be able to reach their
running shoe customers. Their marketing channels are where
their target audience will be reached.
+Competitor(s) Marketing Channels
Reebok’s competition’s marketing channels are generally the
same as Reebok’s. They all use magazines and other print to
market their running shoes. They also use the internet to market
their products using various exercising websites, blogs, and other
digital media. Lastly, just like Reebok there are plenty of
commercials on television with Nike, Adidas, Sketchers, and other
companies marketing their products.
Product/Service
Marketing Channels Cont
Advantages/Disadvantages of Current Channels
The advantages of the current marketing channels:
The marketing channels are already developed
The marketing channels have heavy traffic (internet, television)
The marketing is placed in the channels that most of their customers use
It is simple and easy to locate their customers through profiling where their potential customers
would be on the internet, television, and what magazines they will be looking at
The internet is still on the rise in the technology era making it a prime channel to be exploiting
Digital media is growing at a rapid rate causing the user rate to rise, and the more people who see
the product, the better
The disadvantages of the current marketing channels:
Television, though a prominent marketing channel today, is slowly fading with the new
implementation of Hulu, Netflix, and other screening companies
Print media is a marketing channel that is dying rapidly and will not exist in the future due to
technology
There are other marketing possibilities not being exploited
The target customers are supposed to be active individuals who would not be looking at many of
these marketing channels that frequently
+
Possible Alternative Channels
Different social media: facebook, twitter, and instagram
Marketing through other products such as sports equipment
Since there is a similarity in their audience being exercise prominent, marketing at gyms and
sporting events is pertinent
Create apps on mobile devices to promote Reebok shoes as well as convince customers to buy
them
Market through the sustainability revolution by promoting a healthy body with a healthy earth
Product/Service
Marketing Program
Overall Marketing Program
Overall Marketing Program at Reebok, according to Patrick Joyce, consists of positioning Reebok as a premier
company in the footwear and apparel sports industry with a focus on Fitness.
Program Changes Made
There were a few sectors of marketing that I felt were not being exploited by Reebok, so my marketing plan
consisted of taking advantage of those nodes of the market.
My first idea for the marketing program was to start a GoGreen campaign to follow the green/sustainability
revolution and lead the shoe industry there with it. The campaign would consist of advertising promoting
Reebok’s new GoGreen running shoes created with recycled material and perfected to the best quality. It would
also have to have a high-performance athlete to endorse the campaign and be the label that people staple on the
campaign. I personally would attempt to sign somebody young and on the rise to relate to the young and fresh
idea, and actually be a physical representation of the idea in itself. In the campaign description it would be
great to give an overview of how Reebok is going with the green revolution towards sustainability, while being
able to keep their high standards of quality. A partnership opportunity would also be a great way to start the
campaign and get reassurance from another company who can back Reebok up and provide the foot in the door
of the sustainability market. The partnership can even extend to non-profit, in order to attract new customers
who love supporting charities. The GoGreen campaign would not only be a great step for Reebok, it would be
innovative and capture the audience before the other companies turning Reebok’s positioning in the market to
be stronger than it ever has been.
The next idea that should be implemented in the marketing program of Reebok is a “Be who you want to be”
campaign. The campaign promotes individualism and lets the customer know that Reebok believes that you can
be whoever you want to be. The plan would be to create a shoe that has many different ways to customize it, so
that each customer has their own individual shoe. Because of the specialty of the product, the cost would be a
little more than an average running shoe. However, it is not an average day running shoe; it is your specific shoe
that was designed by you personally, for you. The running shoes would focus on being able to let people
become whoever they want to be through the fitness the shoe that it will bring you. The print and image
advertising would have a silhouette of a shoe; underneath the silhouette it would read “YOU DECIDE.” Not only
does this invoke extreme curiosity, it makes the customer feel like they have a say in what they want, and
everyone likes to have a little control. The product captures the market that says “this shoe is great, but I wish I
could just change the color here on the side.” With ReebokYou, you are able to do this.
+
Product/Service
Marketing Program Cont.
Product Advertising Program
According to Patrick Joyce, Reebok’s product advertising consists of advertising through print,
digital, and television ads. The print advertising is seen through magazine advertisements in
health and fitness magazines. The digital advertising is seen through video advertising on
Youtube to image advertising on different health websites. The television ads consist of
commercial with people like Chad Ochocinco, Peyton Manning, and John Wall promoting ZigTech
and other running shoes.
Product Branding
The brand Reebok has been around for over a century, so its brand has grown and changed over
the years. The first competitive running shoe that incorporated spikes was first created by the
ancestor company of Reebok. Reebok changed from this ancestor company and became Reebok
named for an African Gazelle. At Reebok’s core running shoes are dominant, so as a brand this is
reflected with brand recognition. Reebok now brands its running shoes with athletes like Chad
Ochocinco, Peyton Manning, and John Wall. Through this advertising Reebok has built its brand
to be one associated with high athletic fitness and performance.
+
Product Marketing Success
Through talking with Patrick Joyce, the Senior Manager Global Sports Marketing at Reebok
International, I learned that Reebok is doing well and staying competitive with other products
through the strength of their marketing strategy. This is not just a Reebok marketing manager
saying that his company is doing well; it is actually backed up by evidence seen by people every
day. When one turns on the television there have been lots of commercials on ESPN and other
fitness channel promoting the Reebok ZigTech, through the endorsement of big time athletes like
Chad Ochocinco. There have also been a good amount of commercials for CrossFit and the
Reebok RealFlex on television. On the internet they have been successful through advertisement
placement before watching sports videos on Youtube. Their marketing also has endorsed
entertainers like Mike Posner and Tyga, who are two big names in the hip hop industry.