This document outlines Reebok's marketing action plan to increase sales through a partnership with CrossFit. The plan's objectives are to increase awareness of Reebok CrossFit products among Generation Y to 30% and gain a 10% market share for footwear and 5% for apparel. The strategy involves developing specialized CrossFit shoes, opening Reebok FitHub stores, and running a TV, print, and digital campaign featuring CrossFit challengers to inspire people and boost engagement. Success will be measured through sales, market share, and awareness metrics.
2. agenda
The Business issue
Issue to opportunities
opportunities to oBjectives
OBJECTIVES TO STRATEGY
STRATEGY TO EXECUTION
MEASURING SUCCESS
REEBOK
CROSSFIT
3. THE Business Issue
Sales forecast Has Been cut By Adidas
Sales have Been down
MARKET SHARE IS DOWN
Opportunity to increase Sales on the Back of
growing Trend
5. reeBok
STRENGTHS
WEAKNESSES
Strong Brand equity and
recognition
not the top Brand choice for
purchasing fitness apparel
and footwear
unique heritage
Has initial grounding in the
fitness market
lost their appeal to the
everyday consumer in fitness
Adidas is ReeBok’s parent
company
Market share is low
6. reeBok analysis
ReeBok’s sales and shares
at a decline
2012 each quarter sales
fell at least 25%
Lost NFL
trailing shares
7. there’s optimism
Exclusive Brand for
Crossfit worldwide
unique fitness experience
challenge physical,
mental, social
frequent competitions
to push people further
growing industry
8. reeBok’s market
opportunities
threats
stand out within a growing
fitness apparel industry
Strong competition and
Brands that play within the
same marketplace
re-instate ReeBok as
leading Brand for fitness
apparel
consumer Buying due to
healthier economy
competitors to partake in
CrossFit’s unique program
Niche fashion Brands are
appealing to a younger
market
11. THE Competition
Nike
premium apparel provider
for athletes
a Brand for athletes’
aspirational goals
Under Armour
Brand identity is always
aBout the team
uniforms worn By teams at
more than 100 universities
13. THE TARGET MARKET
“Teenagers currently spend an estimated $153 Billion a year
on everything from computers to cars to clothes.”
!
“Young people are interested in fitness, not as a way to fix
health proBlems they already have, But to live a healthy
life and prevent any proBlems in the future.”
14. THE TARGET MARKET
Demographic segmentation:
Generation Y / Millennials
Geographic Segmentation:
New York, Miami and
Los Angeles
Psychographic Segmentation:
UrBan Achievers and Wealthy
Younger Family Mixes.
Behavioral Segmentation:
CrossFitter influencer
de:
Some Traits Inclu
,535
ian HH Income: $35
Med
loyment Levels:
Emp
White Collar, Mix
Education Levels:
College Graduate
ck,
ersity: White, Bla
Ethnic Div
Asian, Hispanic, Mix
Age Ranges: < 35
19. THE MARKETING PLAN
IVES
ECT
OBJ
increase awareness of
ReeBok CrossFit footwear
and apparel in the US By 30%
Become the preferred Cross
Fit Brand among Generation Y
share OBJECTIVES:
e
ok’s market shar
Increasing ReeB
to $5.0 share
ear $ share to 10%
Increase footw
o 5%
apparel $ share t
Increase
22. THE mission
BREAK DOWN FITNESS BARRIERS
LEAD A FITNESS REVOLUTION
IMPROVE MENTAL, PHYSICAL, AND SOCIAL WELL-BEING
23. PRODUCT offering
Nano 2.0 - Specialized CrossFit footwear
Nano 3.0 - introduce in 2013
enhanced staBility, increased
BreathaBility, greater flexiBility
Customization - Your ReeBok
specifically for CrossFit products
24. PRODUCT PRICING
positioned as a premium offering
within the sporting goods industry
!
The new Nano 3.0 footwear line will
Be premium priced at $200 as it offers
unique quality and Benefits among
this category
26. DISTRIBUTION
ReeBok will continue to Be sold in
national sporting goods retail stores
department stores.
!
The Big expansion on ReeBok’s distriBution channel will Be
their exclusive ReeBok Fit HuB stores:
Los Angeles
Miami
Houston
Washington DC
Chicago
San Francisco
27. THE POSITIONING statement
To all those seeking victory in the sport of fitness,
ReeBok’s CrossFit apparel elevates your performance and
ignites your will to succeed.
33. sfit
ros nge
C
lle
cha ot
sp
tv
THE CREATIVE
Woman VO: The biggest challenge is to push
yourself to the limit...
Woman VO: So Reebok challenged America
the Summer...
See the challengers at
youtube.com/ReebokCrossFit
Woman VO: and found three challengers to
train for the CrossFit games.
Woman VO: Follow these challengers online
and get inspired.
AVO: Join in on the challenge and submit your
CrossFit story online
38. The P&L statement
annual marketing working Budget
$10.35 million for North America
3.8% of operating margin
(down from 6% in first half of 2012)
The CrossFit campaign
cost $7.27 million (Production & Media)
Operating margin will remain at 9.1%
40. monitoring CONTROLS
KPI’s to monitor performance:
Dollar and Unit sales growth By distriBution channel
ReeBok stores
E-commerce
department stores
Dollar Market Share growth vs. main competitors
for footwear and apparel
41. monitoring CONTROLS
Other Financial and Marketing Metrics
Quarterly reporting of awareness levels
Quarterly category (footwear and apparel) reporting
Monthly reporting email response rate
Banner advertising click thru rate
digital impressions
FB likes growth, YouTuBe views, Twitter followers
Monthly tracking of coupon/ promo code redemptions