Executive Summary<br />Reebok is a renowned brand in athletic footwear and apparel. Recently Reebok has made strides to become the leader in toning footwear. Its main competitors are Skechers, New Balance, and Fit Flop. <br /> <br />BJS&M has developed a comprehensive plan to position Reebok EasyTones as footwear that combines style, comfort, and toning while retaining the popular Reebok brand. This will be executed by strategically placing advertisements in the correct mediums to not only reach our target audience, but to communicate the values of the Reebok brand to them.<br /> <br />Our campaign will consist of advertisements in print, television, internet, mobile, and promotional marketing that is estimated to cost $14 million. Our goal is to turn Reebok EasyTone into the bestselling brand for toning shoes.<br />2.<br />1.<br />
Situation Analysis<br />Company Analysis<br /> Reebok was founded in Bolton, England in 1895 by Joseph William Foster. At the time people wanted to run faster, so J.W. Foster created a shoe with spikes in them. Reebok quickly developed and became a well established brand in the U.S. for athletics. In 2000 the NFL and Reebok entered into an exclusive contract that that gave Reebok the exclusive licensing rights to all NFL merchandise for the 32 NFL teams. However, Nike will replace Reebok as the official uniform supplier for the NFL in 2012. Reebok also entered into a similar contract in 2001 licensing all merchandise from the NBA, WNBA and the NBDL to Reebok. In 2004 Reebok became the leading producer of Hockey apparel and equipment. In 2006 Reebok was bought by Adidas for $3.8 billion and Paul Harrington was named CEO of the Reebok brand. In 2009, Reebok introduced the Easy Tone, which toned the glutes and legs of women<br /><ul><li>The U.S. sneaker market is valued at $17.4 billion and Reebok has a 2.6% share.
Reebok’s share of women’s footwear has gone from 3.3% to 8.0% in the past year.
Reebok is second in the toning shoe market with a 35% share.
Overall sales have been declining over the past four years.</li></ul>Consumer Analysis<br /><ul><li>BJS&M’s primary research was done by conducting 100 surveys of the EasyTonedemographic, women 18-35.
Primary research provided a better understanding of the consumer as well as their perceptions and experiences with toning footwear as well as the Reebok brand</li></ul>3.<br />2.<br />
<ul><li> The first results showed that 26% of people surveyed would buy toning footwear. However, after mentioning Reebok’s toning collection 34% said they would buy EasyTones. An increase of 8% which points to the Reebok brand as a selling point.
We see here that consumers rate comfort and quality as the primary attributes they look for in an athletic shoe, with fashion and stability falling right behind. Toning did not place very high. This could be explained by a lack of awareness since toning is a new aspect for shoes.</li></ul>4.<br />3.<br />
Market Analysis<br /><ul><li>Women have a 62 % awareness of toning footwear, while men have 37% awareness.
So far in 2010, toning footwear has made up 6.5% of the $17.5 billion U.S. athletic shoe market compared to 0% in 2009
Skechers is currently the top brand in the toning shoe industry with 55% market share, while Reebok places second with 35%. Fit Flop and New Balance were both under 5% along with other competitors. </li></ul>Trends<br /><ul><li>Expansion to toning running shoes, sandals, moccasins, and slippers.
Sales in 2008 of toning footwear were $17 million, while in 2009 sales rose to $245 million. 2010 projections are nearing $1.5 billion, while 2011 sales are estimated at over $2 billion. These numbers are surprising since the overall athletic shoe market dropped 1.4% in 2009.</li></ul>Risks<br /><ul><li>Doubt in consumer’s mind of product not working.
Consumer concerns of foot and ankle pains. Possibility of ankle spraining. </li></ul>5.<br />4.<br />
Product Analysis<br />Reebok, Skechers, Fit Flop, and New Balance have all introduced toning shoes, each with their own unique innovative technology that claim to tone your legs and glutes simply by walking in them. <br /><ul><li>Reebok uses balance pods as opposed to a rocker bottom which gives the unbalanced sensation of walking on sand.
Technology: Rocker bottom with curved sole and collapsible heel create instability to activate muscles. Kinetic wedge foam midsole designed to absorb shock, increase comfort, and stimulate muscle activity.
Fitness Claims: Increases quad muscle activation 29%, increase glute muscle activation 16%, increases hamstring muscle activation 16%, increases calf muscle activation 14%, burns 10% more calories more than normal walking shoes.</li></ul> <br />Competitive Analysis<br />Primary: Skechers<br /><ul><li>Skechers is first in toning footwear with 55% market share. They are a versatile brand offering a wide variety of footwear options. They also have the largest line of toning footwear which includes athletic footwear and casual footwear.
Strengths: First to make toning shoes popular leading to strong presence in the market
Weaknesses: Ugly shoes, not a popular brand name.
Promotional Vehicles: Point of purchase displays, celebrity endorsements
Current Campaign: Focuses around their new Tone-Ups which are similar to EasyTones with the balance pod technology. Their slogan is “Make your Bottom Half your Better Half”</li></ul>Secondary: New Balance and Fit Flop<br /><ul><li>New Balance is one of the leaders in walking and running shoes.
Strengths: Stylish looking, known brand for walking and running
Weaknesses: Small brand awareness in toning shoe market. Only available in women’s styles
Promotional Vehicle: Public relations – 5% of sales go to Susan G. Komen for the Cure movement.
Strengths: Low priced, available to children, relieves back pain.
Weaknesses: New brand, low brand awareness, no athletic footwear.
Current Campaign: “Get a workout while you walk”</li></ul>7.<br />6.<br />
Competitive Analysis cont..<br />Why Nike is Not a Major Competitor<br /><ul><li>Consumers specifically go out to buy toning shoes rather than buying them in place of another athletic shoe (running, training, exc.), making them a unique purchase.
70% of consumer who buy Toning shoes, buy them in addition to another pair of athletic shoes.
In addition, Nike’s share of the women’s athletic shoe market has decreased by 18%, while Reebok’s share has increased by 242%.</li></ul>7.<br />
Associating with philanthropies</li></ul> <br />Weaknesses<br /><ul><li>Consumer uncertainty about product effectiveness
Lack of consumer awareness</li></ul>Threats<br /><ul><li>Skechers has already established a strong presence in the market owning the top market share
Competitors have already expanded toning to other types of shoes outside the athletic segment</li></ul>Skechers new Tone-Up shoe with similar balance pod technology<br />Target Market Profile<br /><ul><li>Women 18-35 years-old
Target Market Cont…<br />Rationale <br />Our target is women 18-35 years old that are fashion and health conscious. With the recent introduction of toning footwear, women have taken to the idea of “toning on the go,” and the trend is rapidly becoming a large portion of the female shoe market.<br /> <br />Insight<br />Toning footwear is a growing segment within the athletic shoe market because of the convenience of toning technology. Toning footwear allows the consumer to strengthen lower body muscles during daily activities as well as at the gym. Women prefer a sleek style with a low profile sole to avoid drawing attention to the fact that they are wearing toning footwear.<br /> <br />Target Selection on A brand-specific level<br />We would like to heighten brand awareness among our target audience. Focusing on brand loyal consumers and new category users is a key element because of the introduction of new toning technologies. Our target audience is women 18 -35 that want to remain sleek and fashionable while using a well established brand that combines innovative balance ball technology. <br />VALS: Strivers, Achievers and Experiencers<br /><ul><li>Strivers are image conscious consumers who spend on clothing and personal-care products.
Achievers are attracted to premium products, and are a prime target for several different brands.
Experiencers are likely to follow fashion trends and tend to buy on impulse. </li></ul>9.<br />
Objectives<br />Marketing Objectives<br />To increase the toning shoe market share by 20% by the end of the next year.<br /> <br />Communication Objective<br />To increase brand awareness by 65% by the end of next year.<br /> <br />Creative Objective<br />To create awareness of the many benefits EasyTone has to offer.<br /> <br />Media Objective<br />To reach 80% of the target market by the end of the year<br />Advertising Strategy<br />Creative Objectives<br /><ul><li>Get women to associate Reebok EasyTone shoes as the leading toning footwear brand above all others.
Indicate the various benefits of EasyTones by placing them in front of the word “tone,” (EX: “SmartTone, Imagetone, SleekTone.) This not only communicates the selling points of the shoe, but also creates higher recall of the EasyTone shoe</li></ul>Creative Strategy<br />Focal Point: Reebok EasyTone shoes have an edge over their competitors with their innovative balance pod technology, sleek, fashionable appearance, as well as their ability to be customized. <br />Positioning Statement: Reebok EasyTone is an established brand that combines toning and fashion with comfort and customization. <br />Unifying Idea: “EasyTone, AnyTone” This phrase relates to our campaign of interchangeable words in front of the word “Tone”. It also subtly illustrates the idea of customizable EasyTones. <br />10.<br />
Outdoor: <br />Outdoor advertisements such as these billboards will be placed in Denver, Austin, Los Angeles, Honolulu, San Diego, Portland, Seattle, San Francisco, Minneapolis and Miami as our research indicated that they are the top ten most athletic cities. These ads are consistent with our creative strategy in that they advertise both the variety of the shoe as well as the many different advantages of the EasyTone shoe. The repetition of the word “tone” paired up with the benefits of the shoe will create recall of the word “EasyTone” among consumers. <br />11.<br />
Print Ads: Half-page ads<br />Above are examples of half-page print ads that would run in our selected print media. The ads illustrate EasyTone’s capability of being customized online which directs traffic to the Reebok website. Both our outdoor ads and out print ads can be interchangeable as well. The ad also sticks with the theme of naming a benefit of the product paired with the word “tone.”<br />12.<br />
TV Spot:<br />This will be a 30-second spot that will run on both cable and network television. The spot will highlight many of the qualities of EasyTone.The spot will alternate shots of women using EasyTones in various places and our theme of interchangeable words in front of the word “tone”. The shot of the woman will relate to the tagline. Music will play throughout the entirety of the commercial. The spot will end with the final shot of Reebok EasyTone and voice over that says “EasyTone. Any tone, any time.”<br />13.<br />
Mobile Application: Custom EasyTone<br />BSJ&M will design various mobile phone applications that will be compatible with several top smartphone models including: iPhone, HTC, Samsung, and Windows .<br />The Mobile applications will advertise the strengthening benefits of EasyTone shoes as well as direct consumers to nearby locations carrying the shoes. Additionally, consumers will be able to use the application to customize and buy their own unique pair of EasyTone shoes. <br />14.<br />
Point of Purchase: In-store Display<br />In-store displays<br />will encourage the <br />consumer to test out the <br />product in person while social<br />Networking sites such as Facebook will allow the consumer to interact with the product online while directing them to the Reebok EasyTone website. <br />Social Networking: Facebook<br />15.<br />
Online Banner Ad:<br />A large part of our advertising will take place online through banner ads placed on predetermined webpages. Above is an example of an animated banner ad that will run at the top of a webpage. The banner shows the various styles and benefits of the EasyTone shoe in each slide. By clicking the banner, the consumer will be directed to the Reebok.comEasyTone page. <br />16.<br />
Promotional: “Bucks for ‘Boks”<br />Above is a poster that advertises our “Bucks for ‘Boks” promotion. The poster encourages consumers to turn in their old pair of Reeboks to be recycled in exchange for a 15% off coupon that can be used towards the purchase of a new pair of EasyTone shoes. Since the posters will be placed in-store, it also encourages the consumer to test out the product. <br />17.<br />
Media Strategy<br />Reach and Frequency Objectives<br />Frequency: 80%<br />Our primary objective is frequency, because our brand is national and our consumers are diverse. Additionally we want to focus on brand recognition.<br />Reach: 4<br />Reach is our secondary objective. We found reach to be less important, because through our research we discovered that Reebok has room to improve in awareness based on the market share to desired brand ratio of Reebok to Skechers .<br /> <br />18.<br />
Strategy<br />Advertising will help Reebok’s EasyTone line become the leader in toning footwear by a hybrid of continuous and flighting advertising patterns. <br />Continuous advertising will increase brand awareness in the toning shoe market, while flighting will capitalize on more prominent periods. <br />Our flighting period will consist of advertising in time for Black Friday and the Christmas season, and increased advertising in the beginning of January to target the New Year’s Resolution consumers. Advertising will also increase in late Spring/early Summer to promote outdoor exercising.<br />Our strategy will also include the following alternative ways of advertising:<br /><ul><li>Sponsoring Relay for Life, including participation in Relay for Life by Reebok. Percentage of profits of EasyTones sold at Relay for Life will go towards cancer awareness.
Discounts for bringing in old pairs of Reeboks In our “Bucks for ‘Boks” promotion.
Discounts when consumers join Curves, an all women's gym.
Point of purchase displays to push consumers to choose Easytones over Skechers.
Online rebates to increase web traffic.</li></ul>Advertising will place the following positioning statements in the mind of the consumer:<br /><ul><li>EasyTones are the first in style, fashion, and comfort for toning shoes.
Reebok is the most desired brand in the toning shoe market.
Balance pod technology is above all other toning technology.</li></ul>19.<br />
Media Selection<br />Budget<br /> We recommend a budget of $14 million based off of approximately 3.5% of Reebok’s 35% share of the toning shoe market. Toning shoes make up an estimated 6.5% of the $17.5 billion athletic footwear market, or $1.4 billion for 2010.<br />20.<br />
Continuity Schedule<br />Media Explained<br />Nationwide (U.S.) <br />These advertisements will run nationwide in the U.S. to reach large percentage of our demographic. This also allows advertisements in nationwide publications.<br />Newspaper<br /><ul><li>Time: November – December
Why? This will heavily focus on the target audience almost all year round. Additionally most of the magazines focus on physique and image which will work excellent with toning advertisements.</li></ul>Cable TV<br /><ul><li>Time: May – July; November – January
Sample Programs: Jersey Shore, 16 and Pregnant, Real Housewives of Beverly Hills, Top Chef, Work Out, The City, Teen Mom, The Real World, Project Runway, Desperate Housewives, Cook Yourself Thin, Grey’s Anatomy, Dance Your A** Off, America’s Next Top Model, exc.
Why? High amount of viewers in the target audience.</li></ul>Internet<br /><ul><li>Time: April – January
Why? Mobile is estimated to be a $1 billion business in 2011, and an estimated 50% of cell phone users will have smart phones in 2011.</li></ul>Spot Advertisements<br />For spot ads we will be targeting the following cities: Denver, San Diego, Portland, Austin, Seattle, San Francisco, Minneapolis/St. Paul, Miami, Honolulu, and Los Angeles. These cities were chosen based on them being the top 10 most athletic cities for females in the U.S. Additionally it will provide an increase in frequency and reach for these cities.<br />Network TV<br /><ul><li>Time: May – July; November – January
Why? Able to reach a large audience with flighted advertisements during holiday season and Spring/Summer months. Will also cost less than airing spots nationally.</li></ul>Outdoor<br /><ul><li>Time: April – June; November – January
Why? Will reach a large number of people in the target audience with low costs.</li></ul>23.<br />
Public Relations<br />Press coverage will be available through press releases and a pre-assembled press kit. Press Release information will also be available online at Reebok.com. News releases will be sent to announce the following:<br /><ul><li>Reebok EasyTones will sponsor Relay for Life in 2011. This event will be announced in the months leading up to the event via newspaper ads, Reebok.comand on our Facebook.com fan page.
Reebok EasyTones will set up booths during Relay For Life events in major U.S. cities to hand out water bottles to participants. Also, tents will be set up at the event for patrons to test out and purchase EasyTone shoes.
Registration information for Relay For Life will be available at Reebok retailers as well as on the Reebok.com website.
“Bucks for ‘boks” – Donate/recycle old Reeboks to participating stores for 15% off coupons.to be used towards the purchase of EasyTone shoes. This will be a national effort and will be advertised via point of purchase displays as well as via email to Facebook fans.
Drop-off locations will be located at Lady Footlocker, Famous Footwear, and Macy’s. </li></ul>Sales Promotion<br />Sales Promotions will be available through a variety of outlets. Rebates to new and active gym members of Curves, and recycling and donation discounts for new and used shoes are the campaign’s prominent sales promotions. Each will be retainable online at Reebok.com or in select shoe department stores. <br />Curves (women’s only gym) new and active members will get a rebate for $10 off of Reebok EasyTone shoes. This will increase Reebok.com’s web traffic and promote women to customize their own pair of EasyTones. <br />Recycling and Donating new and used Reebok shoes will allow the recycler/donator to get a 15% discount off of their purchase of Reebok EasyTones in Reebok stores. This will allow for product interaction. <br />Reebok EasyTone sales promotions will allow for the interaction between our target audience and product. This will create support and excitement through a network of interaction by Reebok EasyTones and the benefits it offers. An arrangement of sales promotions allows the audience to obtain the maximum amount of benefit associated with Reebok’s EasyTone product.<br />24.<br />
Campaign Evaluation<br />Within the first year of the launch, BJS&M Agency will measure the success of the campaign primarily by assessing the level of brand awareness in terms of recall and in brand purchase intention. We will also measure by means of:<br /><ul><li>The number of rebates redeemed via Reebok.com
An increase web traffic via Facebook membership
Pre- and Post-tests levels of awareness and purchase intention at targeted locations i.e. Curves® women’s gyms, which will be monitored on a quarterly schedule.
Percent of coupons issued for donated/recycled old Reeboks for in-store credit, linked to an increase in product sales. </li></ul> <br />25.<br />
References<br />“Toning Shoes May Find Untapped Market in Men, NPD Data Find” By: Matt Townsend<br />http://www.businessweek.com/news/2010-03-11/toning-shoes-may-find-untapped-market-in-men-npd-data-find.html <br />2) “Toning shoes, while hot, could be bad Nike fit” By: Alexandria Sage<br />http://us.mobile.reuters.com/article/idUSTRE6202AI20100301?ca=rdt<br />3) “Why Skechers will ‘Shape Up’!”<br />http://seekingalpha.com/instablog/729278-retailprodog/97729-why-sketchers-will-shape-up<br />4) http://www.adidas-group.com/en/investorrelations/default.aspx<br />5) http://www.skechers.com/<br />6) http://www.reebok.com/US/custom-shoes/womens/listing?f.ProductId=37<br />7) http://www.newbalance.com/company/<br />8) http://www.fitflop.com/<br />9) “The Complete Guide to Toning Shoes” By: Ed Forteau<br />http://www.walkingshoereviews.com/complete-guide-toning-shoes<br />10) “Soaring sales, wary words for toning shoes” By JennAbelsohttp://www.boston.com/business/articles/2010/07/23/soaring_sales_wary_words_for_toning_shoes/<br />11) “Are Toning Shoes the Next Crocs?” By ALyceLomahttp://www.fool.com/investing/general/2010/09/10/are-toning-shoes-the-next-crocs.aspx<br />12) “The Most Multipurpose Toning Shoe on the Market” By QaswerAmin http://ezinearticles.com/?The-Most-Multipurpose-Toning-Shoe-on-the-Market&id=4783554<br />13) “UPDATE 2-Skechers Q3 lags on toning shoe build-up; shares fall” <br />http://www.reuters.com/article/idUSSGE69Q0OX20101027 <br />14) CORRECT (8/31): “Toning Shoe Makers Diversify To Grab More Market Share” By Veronica Dagher<br />http://online.wsj.com/article/BT-CO-20100902-712144.html<br />“’Toning’ Shoes Gain Traction” By Matt Townsend http://www.businessweek.com/magazine/content/10_24/b4182022652759.htm<br />16) “Nike Touts New Women’s Trainer, Counters Toning Shoe Claims”<br />http://www.sportsbusinessdaily.com/article/141182<br /> <br /> <br /> <br />26.<br />