Reebok Rebrands: Corporate and Marketing Strategies in the South African Sporting Goods Industry

Abstract

This case examines the global and local strategies of Reebok to reposition itself as a fitness brand within the sporting industry. The case revolves around PJ Morilee, Reebok South Africa’s brand manager, and his efforts to increase Reebok’s brand equity which is measured by a monthly NPS score. Having previously worked for Adidas, PJ received the opportunity of re-establishing Reebok in the South African market. PJ believes the strategic and marketing activities should focus on the brand being authentic and credible as this will lead to an increased NPS score, and with it, the brand will grow.

The acquisition of Reebok by the Adidas Group in 2006 caused a ripple effect within Reebok. The corporate strategy changed from being a sporting brand competing against the likes of Nike, Puma and Adidas themselves, to being a subsidiary of the Adidas Group focussing on the specialised fitness segment. This affected the brand from a local perspective and it was PJ’s responsibility to ensure the local marketing activities represented the global vision of the company.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit 1: Calculation of the NPS Score

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The NPS is calculated by taking the percentage of customers who are promoters and subtract the percentage who are detractors as shown in the equation below:

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Exhibit 2: The Reebok Freestyle and Pump

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Exhibit 3: Reebok’s Online Fitness Categories

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Exhibit 4: Adidas Group Corporate Strategies

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Exhibit 5: Reebok Classic

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Exhibit 6: Nielsen Les Mills Global Consumer Fitness Survey

Millennials Dominate All Fitness Class Activities

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Exhibit 7: Reebok’s Strategic Focus

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Exhibit 8: Net Promotor Score

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  • Largest NPS Gain across all brands: +23.2
  • Significant Key city gains, JHB: +30.4 & CPT: +40.8 (Durban brings overall score down – previous distributor legacy)
  • Reebok NPS amongst athletes up to +18.6

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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