Nike vs. Reebok Marketing Strategies, Essay Example

Nike and Reebok might have started as shoe manufacturers but have evolved since then to become one of the leading lifestyle brands in the world. Both companies do business on a global scale and are aware of the growing competition due to globalization. As a result, they understand the importance of marketing strategies in setting oneself apart from the competition. Nike and Reebok spend considerable efforts and resources on marketing and their respective marketing strategies share both similarities and differences.

One of the similarities between Nike’s and Reebok’s marketing strategies is that both utilize sports celebrities to emotionally appeal to the targeted market segments as well as build credibility for the products. Nike has arguably mastered the art of celebrity sponsorships and has sponsored a wide range of athletes over the years including Michael Jordan, Tiger Woods, Andre Agassi, Kobe Bryant, and Lebron James. Reebok doesn’t have the same resume as Nike but its latest marketing strategy does emphasize sponsorship of sports athletes that may boost its brand profile. Some of the athletes under contract with Reebok are Eli and Peyton Manning (Lefton).

Another similarity between the two companies’ marketing strategy is that they are both devoting considerable resources to digital marketing. Nike is so committed to digital marketing that the company’s TV and print advertising dropped by 40 percent in just three years in the U.S. (Cendrowski). Similarly, Reebok which is in the process of reinventing itself now designs marketing campaigns with a major focus on social media (McMains).

Another similarity between Nike’s and Reebok’s marketing strategies is that both companies are increasingly becoming consumer-oriented as opposed to product oriented. There was a time when both companies primarily focused on product innovation and hoped the products would sell themselves. But now Nike doesn’t just develop products and hope they will sell themselves but is actively studying consumers and their needs to provide specific solutions. Nike’s push in digital technology reflects this and the company now directly collects massive data on its customers and is more directly engaged with them (Cendrowski). Similarly, Reebok is now focused on creating products that are lightweight and flexible in order to make fitness lifestyle convenient for customers (Adidas Group).

One of the major differences between Nike’s and Reebok’s marketing strategy is that while Nike continues to exert major focus on traditional sports like American Football, soccer, and basketball, Reebok has been reinventing itself as more of a fitness lifestyle brand and moving away from major focus on traditional sports.. Reebok struck a 10-year deal with CrossFit in 2010 and now sponsors CrossFit Games. The tagline for the company’s 2012 marketing campaign even claimed, “The Sport of Fitness Has Arrived.” (Zmuda). Reebok also has partnership with fitness group Les Mills which owns Bodypump and Bodycombat programs and also organizes Spartan obstacle course races (Bryan).

Nike’s and Reebok’s marketing strategies have several similarities such as use of sports celebrities to emotionally appeal to customers, major emphasis on digital marketing, and greater focus on consumer needs. But at the same time, Reebok’s marketing focus is more limited as opposed to Nike. Nike continues to focus on traditional sports such as soccer and American Football but Reebok has almost shifted its entire focus on fitness lifestyle.

References

Adidas Group. mission and values. 10 March 2014 <http://careers.adidas-group.com/reebok/mission-and-values.aspx>.

Bryan, Victoria. Adidas calls in fitness experts to revive Reebok. 2 October 2013. 10 March 2014 <http://www.reuters.com/article/2013/10/02/us-adidas-reebok-strategy-idUSBRE9911BZ20131002>.

Cendrowski, Scott. Nike’s new marketing mojo. 13 Februry 2012. 10 March 2014 <http://management.fortune.cnn.com/2012/02/13/nike-digital-marketing/>.

Lefton, Terry. Reebok keeps foot in NFL by re-signing Manning brothers. 7 May 2012. 10 March 2014 <http://www.sportsbusinessdaily.com/Journal/Issues/2012/05/07/Marketing-and-Sponsorship/Reebok.aspx>.

McMains, Andrew. Reebok’s Marketing VP Talks New Campaigns, Social Media Strategy. 3 March 2011. 10 March 2014 <http://www.adweek.com/news/advertising-branding/reeboks-marketing-vp-talks-new-campaigns-social-media-strategy-126347>.

Zmuda, Natalie. Watch the Spot: Reebok Highlights CrossFit Connection in New Campaign. 13 January 2012. 10 March 2014 <http://adage.com/article/news/reebok-highlights-crossfit-campaign/232101/>.