Sneaker Wars

1
Sneaker Wars

• Reebok vs. Nike
• By Clay M Crockett

2
History of Reebok

• Started in 1958
• Reeboks first big step was womens shoes
• During the 1980s sales for Reebok exploded

3
What Reebok saw

• Reeboks realized 3 things
• 1) Aerobics
• 2) More women in sports
• 3) Wearing athletic clothing daily

4
Sales

• Sales in 1983 were 13MM
• Sales in 1985 where 307MM
• 1991 saw 2.7 B
• It was in 1987 that Reebok surpassed Nike

5
Reeboks Strategy

• Reebok signed Shaquille ONeal
• Also launched a major advertising campaign
  through sports sponsorship.
  
• Signed 3,000 athletes to wear Reebok shoes.

6
Nike

• Nike took back the lead three years later
• After that Reebok steadily lost ground

7
Nikes Strategy

• Turn from a shoe company to an athletic goods
  company.
  
• They began to sell everything from sandals to
  golf clothing, to sunglasses.

8
Tiger Woods

• Woods has been Nikes biggest success.
• Allowed them to surpass Reebok by 213 in 1999.

9
Conclusion

• Reebok tried to overtake Nike.
• They were able to temporarily but Nike had a
  better strategy.
  
• Nike won in the end.

10
Debate

• Companies should hire only
• Celebrity endorsers
• Heres why

11
Proven

• Consumers are more likely to buy from a company
  that uses a celebrity

12
Attention

• In a world of constant advertising, a well known
  person will hold a consumers attention.
  

13
Establishing a Connection

• People subconsciously connect the success of the
  person with success of a brand.

14

• Consumers will also mimic a famous person because
  they want to be more like them.

15
Goodwill

• When well known people support a brand, consumers
  are more likely to trust that person.
  
• This leads to increased goodwill for the company.

16
Free Advertising

• Each time a celebrity endorsers name is mentioned
  that is free advertising for the company.

17
Michael Jordan

• Of a survey of 200 Marketing execs, it was found
  93 thought Michael Jordan was the most effective
  celebrity of all time.
  
• Study by TSE Sports
• Entertainment

18
Reasons against Non-celebrity endorsements.
19

• Those that arent well known dont have the same
  clout as celebrities do.

20

• People wont seek to mimic someone that they
  dont know well.

21
More Risk

• While it may be cheaper, hiring a person that
  isnt a famous will likely lead to lower sales.

22
Conclusion

• Hire someone famous!