Reebok in pursuit of Gen X

Group 9 Anju Ekka (PGP27202) | Dimple (PGP27212) Nikhil (PGP27226) | Pritha Ray (PGP27237) R Maheswaran (PGP27238) | Shishir (PGP27251) Venkatesh (PGP27259) | Vignesh N (PGP27260)

Case synopsis
Reebok, Adidas & Nike 3 major players in athletic shoe market Footwear growth was forecasted to grow at less than 1% Reebok looking for ways to connect with Gen X ( those born between 1965-1981, 50 mn)

Generation X
Why Gen X?
32% of the current work force Purchasing power of $730 billion Represent 27% of the countrys GNI

Gen X characteristics
Known for self reliance, refuse mediocrity and seek balance in life Dislike direct advertising, propensity for technology Attraction to personal style than designer logos Spend more time on the internet than TV

Terry Tate ad
CMO of Reebok viewed Super Bowl as critical moment; spent $4 mn for 60 secs spot Ad generated interest as it was viewed as hysterically funny Generated massive hype and great traffic to the companys website

Question 1
How effective was Terry Tate ad for Reebok brand? Ad succeeded in connecting with the Gen X audience as it was humorous However, brand awareness and brand perception showed no change as brand Reebok was not in the forefront of the ad No increase in sales or market share

Question 2
Is change in brand awareness a sufficient measure of impact of a viral campaign? Effectiveness of a viral campaign can be judged on 3 criteria Lead generation Brand exposure Conversion

The Terry Tate ad met only the third parameter

Question 3
What measures should Reebok employ to assess effectiveness of advertising dollars in cyber space? Measurement revolves around assembling a picture of what users actually do
VTR CTR No of people who forwarded the ad as an email Repeat viewing

There are specialists company that Reebok can employ to measure the above

Question 4
Was this viral campaign viral enough? Yes, because
20 downloads per second More than 20 million downloads 7 fold increase in traffic to online store Merchandise like Terry Tate dolls and shirts

However, it did not bring about an increase in sales or brand awareness

The six million dollar question

What should be Dennis Baldwins marketing strategy? Option 1 Viral ads
Reebok should employ software firms that can measure the effectiveness of their viral ad as explained earlier If effective, Dennis should go ahead with developing 3 additional Terry Tate videos However, care should be taken to make Reebok as a brand more visible in the ads

The six million dollar question

Option 2 Paid search
Using paid search, one can accurately measure the amount of business brought in by each customer click (Click through rate and Cost per thousand) As paid search has high relevance, it can effectively reach the target audience as against mass marketing Paid search also provides high flexibility with regards to cost controls

Thank you