SPIRIT OF ENTERPRISE
Reebok Sets the Pace
Mick Jagger likes his Reebok sneakers so much that he wears them in his hit music
video Dancin' in the Street. But when the lead singer of the Rolling Stones wanted
a few extra pairs, the stores in Britain were sold out. So Jagger's father wrote Paul
Fireman, president and chief executive of Reebok International Ltd., asking if his
son could pick up some on his next trip to New York. Fireman was glad to give the
singer satisfaction. Jagger isn't the only one scrounging for Reeboks (named after
an African gazelle). The stylish sneakers are fast becoming standard equipment for
trendy young consumers, and sales in 2006 will exceed $76 million pairs.
Reebok's breathtaking success may be attributed to four elements: The company
had something of quality to sell, its look was new, the marketing was shrewd, and
the public was waiting.
Fireman feels that Reebok has a distinct advantage over competitors whose senior
management consists mostly of men who tend to see things through the eyes of ex-
athletes. Reebok's management realized there was enormous pent-up demand for a
shoe that not only performs but fills a burning need for more style, more comfort,
more fit, and more fashion, particularly for women. The brilliant colors and soft
leather made Reeboks an overnight smash. Women became willing to spend $40
on athletic shoes, because they didn't think of them as just sneakers anymore.
One of Reebok's marketing secrets has been to find and develop market niches
unfilled by competitors. For example, the company designed shoes specifically for
tennis and aerobics. Reebok feels that the next great undiscovered, or at least
unexploited, American pastime is walking. Thus the company has recently
developed a line of walking shoes.
Reebok's marketing effort consists of a heavy dose of advertising in specialty
periodicals, with some advertising in related general-interest magazines and on
television; publicity for the product by a very select group of successful athletes;
and perhaps most important, a great emphasis on grassroots involvement, such as
research on injury prevention, sponsorship of aerobics seminars and clinics, and
publication of newsletters. Reebok has also formed instructor alliances. Aerobics
teachers were offered special deals on shoes, and arrangements were made to put
Reeboks on the feet of many television aerobic instructors. This sort of
involvement has kept the company in touch with what the public wants and has
created an identity.
Reebok has expanded the market for athletic shoes by luring customers from more
conventional casual shoes. It has also taken business from all other sneaker
companies, such as Nike. These companies, however, are trying to fight back. For
example, Nike has introduced wildly popular basketball shoes named for Chicago
Bull Michael Jordan. Adidas is also striking back with a line of soft-leather shoes,
as well as the industry's first canvas aerobic shoes.
At the moment, Reebok markets shoes for aerobics/exercise, fitness, running,
tennis, children/infants, casual wear, and basketball. Reebok is also moving into
the apparel market: accessories (socks, hats, bags, and the like) and tennis, fitness,
warm-up, and active wear. Kids' wear is also planned. Will the company continue
to be successful? In the business of shoes and fashion, it's easier to sprint than to
run a marathon. Only time will tell.
1. Explain the following words:
Scrounging_______________________
trendy __________________________
breathtaking _____________________
shrewd __________________________
pent-up __________________________
smash ___________________________
grassroots ________________________
warm-up_________________________
2. Give synonyms to the following words
To pick up, distinct, enormous, pastime, periodicals, alliances, to lure, apparel.
3. Make up short situations using the following phrases
Breathtaking success, senior management, to see things through the eyes of
somebody, to fill a burning need for more style, to develop a line of walking shoes,
publication of newsletters, to offer special deals on shoes, to keep in touch with
somebody, to fight back, to move into the apparel market.
4. Answer the following questions
Why wasn't Mick Jagger able to obtain a new pair of sneakers?
What did his father write Paul Fireman?
What is Reebok’s main advantage?
How does this advertise its products?
For what purposes have they invited the aerobic instructors?
What target market is Reebok aimed at?
How do competitors keep up with Reebok?
Why has Reebok become successful?
5. Translate the following sentences into English
- Стильні кросівки швидко стають стандартним обладнанням для модних
молодих споживачів, а обсяг продаж в 2006 році перевищить $ 76 млн. пар.
- Reebok має явну перевагу над своїми конкурентами, керівництво яких в
основному складається з людей, які схильні бачити речі очима колишніх
спортсменів.
- Один із секретів маркетингу компанії Reebok полягає в тому, щоб знайти і
розробити ринкові ніші, незаповнені конкурентами.
- Управління компанії Reebok зрозуміло, що існує величезний попит на
взуття, яке задовольняє гостру необхідність стилю та комфорту, особливо
для жінок.
- Reebok розширив ринок спортивного взуття шляхом заманювання клієнтів з
більш традиційного повсякденного взуття.
6. Explain all the four attributes of the company's success.
