Case Study: The rise, scandal, and revival of Reebok

Established in 1958, the brand quickly gained prominence. The real game-changer came in 2005 when Reebok was acquired by Adidas, which aimed to expand its global presence. Over the years, Reebok’s brand positioning and marketing strategies have continuously evolved to compete head to head with global and local brands.

Market Entry in India

Reebok entered the Indian market in 2006, a time when it was still owned by Adidas. The brand seized this opportunity to tap into India’s growing middle-class population as a part of its global expansion plan.

In India, consumers increasingly wanted to try global brands for footwear, but the prices turned out to be an issue for many. Reebok, however, offered affordable luxury – high-quality products at good prices. Not only this, the brand also eventually repositioned itself from a footwear brand to a fitness and sports brand, expanding its product categories and revenue scope.

And it’s not only targeting metros but Tier-2 and Tier-3 cities as well. Reebok was aggressive with its retail strategy, opening exclusive stores across major cities. This early move was essential in establishing brand visibility and trust, especially in a market that still leaned towards local footwear brands.

Once a market leader, Reebok’s brand image took a hit due to internal challenges, including a financial scam that impacted its credibility in India. It was a case of corporate misconduct, where some top-level employees manipulated records and hid products, resulting in a loss of INR 870 Cr!

The company lost ground to competitors like Nike, Adidas, and Puma. However, its acquisition of India operations by the Aditya Birla Group in 2021 provided a fresh start for the brand in India. Aditya Birla Fashion’s portfolio expansion into sportswear through Reebok has helped rejuvenate the brand, positioning it to capture a share of India’s booming athleisure market.

Reebok’s journey in India has been full of highs and lows, but its ability to adapt, rebrand, and reposition itself continues to keep the brand relevant.

Reebok’s STP and SWOT Analysis

Segmentation:

When Reebok first entered India, they zeroed in on urban metros and Tier 1 cities where fitness culture was on the rise. Middle to upper-class individuals, aged 18-35, primarily athletes and fitness enthusiasts were the core audience. Psychographically, they targeted people who live for wellness, love to stay active, and appreciate a stylish athleisure look.

Targeting:

Reebok’s primary target has been sports professionals, athletes, and gym-goers. The brand also found a sweet spot with fashion-conscious consumers who may not hit the gym every day but want athleisure that blends both style and comfort.

This allows the brand to position itself as a versatile player in both performance wear and casual fashion – ideal for the growing number of people who wear sportswear both for workouts and social outings.

Positioning:

Over time, especially in India, Reebok pivoted toward fitness, wellness, and lifestyle. This shift mirrored the rising fitness culture in the country and helped the brand tap into a broader market.

Strengths:

• Strong Brand Identity: 
  Reebok is a well-established global name, recognized for its high-performance sports gear and trendy athleisure wear.

• Collaborations and Endorsements: 
  From fitness influencers to Bollywood stars, Reebok has successfully aligned with top personalities. This strategy has helped boost its visibility and credibility in India, where celebrity culture plays a significant role in brand success.

• Versatile Product Range: 
  Reebok offers everything from performance-enhancing athletic wear to fashionable athleisure, catering to different consumer needs.

Weaknesses:

• High Price Point: 
  One challenge for Reebok is its relatively higher prices, especially when local competitors like Decathlon offer more affordable sportswear options. This price disparity makes it harder for Reebok to appeal to budget-conscious consumers in India.

• Lagging in Innovation: 
  In comparison to brands like Nike and Puma, Reebok has sometimes been slow to innovate, especially in the growing athleisure segment.

Opportunities:

• India’s Booming Fitness Market: 
  The fitness and wellness industry in India is growing rapidly, and Reebok can expand its market share, particularly in fitness gear and athleisure.

• Sustainability: 
  Initiatives like sustainable manufacturing and eco-friendly materials could resonate with the modern, environmentally conscious shopper​.

Threats:

• Intense Competition: 
  Reebok faces stiff competition from global heavyweights like Nike, Adidas, and Puma, as well as affordable local players like Decathlon.

• Shifting Consumer Preferences: 
  With fast-changing fashion trends, especially in athleisure, Reebok must stay on its toes to keep up.

By keeping an eye on market trends, Reebok has a chance to make a strong comeback in sectors where it may be lagging.

Competitor Analysis

Nike:

Nike‘s presence in India is all about innovation, from its cutting-edge sports gear to fashion-forward athleisure. One of Nike’s biggest strengths is its relentless product innovation – whether it’s the latest cushioning technology in running shoes or sustainable material choices for apparel.

This makes them a go-to brand for athletes, but also for fashion enthusiasts who want to sport trendy, premium-quality products.

Adidas:

Adidas, the parent company of Reebok, is in a slightly more comfortable position in the Indian market. Adidas has consistently capitalized on global trends like collaborations with artists, fashion designers, and influencers, offering consumers a mix of high-performance sports gear and stylish streetwear. In India, Adidas’ focus on cricket, football, and running gear has given it a distinct advantage.

Puma:

Puma has quickly grown in popularity, especially among younger, fashion-forward audiences. With trendier products, Puma has positioned itself as the go-to brand for young professionals looking for stylish yet functional sportswear.

In India, Puma’s presence is amplified through collaborations with Bollywood celebrities, social media influencers, and an extremely strong digital marketing game.

Decathlon:

Decathlon, while not a direct rival in terms of premium positioning, has carved a niche by offering highly affordable sportswear and equipment. The brand’s massive retail stores and online presence in India allow it to provide everything from yoga mats to running shoes at prices significantly lower than competitors like Nike and Reebok.

What makes Decathlon particularly formidable is its accessibility – people looking for functional, no-frills sports gear tend to gravitate toward it. Reebok, then, sits in a crowded space, surrounded by brands that excel in different areas.

Reebok’s strategy going forward could benefit from embracing innovation, doubling down on its fitness and wellness positioning, and targeting the growing athleisure trend with a mix of style and performance.

Marketing Mix

Product:

Reebok’s product lineup in India spans a wide variety of offerings, including footwear, apparel, and accessories tailored for fitness enthusiasts. Collaborations with global fitness communities and local fitness influencers have helped Reebok maintain relevance in India’s fitness culture.

The brand doesn’t just sell products; it sells a fitness lifestyle. From running shoes and yoga pants to fitness trackers, Reebok’s range appeals to athletes, gym-goers, and even fashion-conscious consumers looking for athleisure wear.

Its product strategy taps into India’s growing awareness of health, fitness, and wellness .

Price:

In India, Reebok has positioned itself as a premium brand, and its pricing reflects this. Reebok’s products are priced in line with global competitors like Nike and Adidas, which limits its accessibility to more affluent urban consumers.

The pricing strategy makes it clear that Reebok’s target audience values quality, performance, and brand prestige over low-cost alternatives. However, Reebok frequently offers discounts through e-commerce platforms and exclusive sales, especially during major shopping festivals, which helps to stay competitive while maintaining its premium positioning .

Place:

Currently, Reebok has 170 stores across India, with most of them being franchises There are plans to add 300 more stores in the next 3 years – this will help to strengthen their retail presence. (Source)

Reebok has strategically focused on major metros as well as Tier-2 and Tier-3 cities, expanding its retail presence through flagship stores in shopping malls and high-traffic commercial areas.

This gives consumers a direct touchpoint to experience their products before buying. It has also embraced the digital shift by expanding its e-commerce footprint through partnerships with top online marketplaces such as Flipkart, Amazon, and Myntra, while also running its own direct-to-consumer website.

This multichannel distribution strategy ensures that consumers across India have access to Reebok’s offerings.

Promotion:

Reebok has consistently promoted itself as a fitness-focused brand through a blend of celebrity endorsements, social media campaigns, and grassroots events.

Bollywood stars like John Abraham and fitness influencers have been central to the brand’s messaging.

The ‘Fit to Fight’ campaign revolved around women’s empowerment through fitness and was fronted by Bollywood actress Kangana Ranaut.

Reebok cleverly tapped into the cultural narrative of female strength, aiming to position itself as more than just a sportswear brand but as a champion for Indian women by fighting against gender-based violence.

Reebok’s ZigTech technology, which was designed to help athletes improve their performance by using a unique zig-zag sole, was heavily promoted through campaigns featuring Indian athletes and cricket stars like Mahendra Singh Dhoni.

This helped in establishing Reebok’s credibility in the sports performance category and creating buzz around its innovative footwear technology. They also have the Reebok Running Squad which organizes various bootcamps in places like Bangalore and Dehradun.

This helps to instill a sense of community with the users while also helping them with valuable information and with reaching their fitness goals. It makes the users highly engaged with the brand on a personal level.

Apart from this, the campaign also gets organic user-generated content (UGC) which makes real people the brand ambassadors of the company, increasing trust, credibility, and word-of-mouth marketing.

In a Nutshell

As India continues to urbanize, there is a significant opportunity for Reebok to expand its presence in smaller cities. Its collaborations with Indian athletes and its focus on product localization demonstrate how a global brand can make an impact in a diverse market like India.

Reebok’s story is not just about sneakers and apparel but about resilience in the face of challenges and a keen understanding of market dynamics.

Key Takeaways from Reebok’s Marketing

• Adapt to Local Markets:
  Localizing your product and retail strategies can help build trust and relevance in new markets.

• Leverage Celebrity Endorsements:
  Collaborating with well-known influencers and athletes can amplify your brand’s visibility and credibility.

• Innovate Consistently:
  Staying ahead of competitors requires constant innovation in product design and marketing campaigns.

• Utilize Multichannel Distribution:
  An omnichannel presence ensures maximum customer accessibility.

• Engage the Customers:
  This helps to create a sense of community with the brand.