Reebok's 'Breakout' Spots Take A Swing At No. 1 Nike

BOSTON - In what sources last week called the "biggest shot yet" in the athletic shoe wars, a soon-to-break global branding campaign from Reebok International attempts to deliver a blow to the mighty Nike. Crafted by New York agency Berlin Cameron & Partners, the "Breakout" campaign will include a series of four commercials. The first spot, scheduled to break May 25 during the NBA finals, shows a phalanx of more than 6,000 runners, all of whom are the likeness of Terry Simpson, a triathlete, Olympic hopeful and Reebok endorser. Many of the clones are wearing the number "97005," which is also written graffiti-style on the sides of buildings. To the average viewer, this number has no particular significance. But it is, in fact, the ZIP code for Beaverton, Ore. - Nike's hometown. Reebok officials said the new work values individuality over conformity. In the initial spot, to illustrate the uniqueness of Reebok's products, the exterior of one of the clones shatters, and a new runner emerges, stepping on his mask with his Reebok-clad foot. "Reebok has the best shoe technology in the world in DMX, and we're essentially trying to show it's a breakthrough," said account planner Ewen Cameron, who oversees the Reebok business at Berlin Cameron. "We've got to challenge what people think is the winner. Nike used to be the winner, but no more." A tagline for the campaign, scheduled to run through the end of the year, has not yet been finalized. A possibility, according to Reebok representative Dave Fogelson, was "Creating possibilities." At least one of the future commercials will feature Reebok endorser and NBA player Allen Iverson. How wise is Reebok to attack its largest competitor? "Reebok probably senses an opportunity to strike at the 800-pound gorilla who is going through some problems," says Steven Richter, an equity analyst with Tucker Anthony in Boston. "Reebok has some neat technology and senses an opportunity to leverage it and attack the leader. Why not take advantage of the exciting technology and see if you can regain some market share?" This strategy only works on a short-term basis, if at all, says Jim Gregory, the chief executive officer of Corporate Branding in Stamford, Conn., "You can tweak the competition, but this sounds like an all-out effort to knock down a competitor," Gregory said. "Nike is a great brand that's having some short-term problems . . . I don't think it's a wise move to take on such an awesome competitor who really understands branding." The athletic shoe industry as a whole has suffered in recent months, with many former sneaker consumers now turning to what industry analysts call the "brown shoe," which is any type of footwear that is not a sneaker. Black & Co., an equity analysis company in Portland, Ore., reports that the "brown shoe" trend is rapidly gaining momentum among 25-35-year-old men. In addition, Nike has seen its stock price fall to $47, down from a high of $66.50. Reebok's stock has also suffered, last week hovering around $30, down from a high of $52. Despite its troubles, Nike still commands 47 percent of the footwear market in terms of sales. Reebok, with 16 percent market share, remains a distant second. Although Heater Advertising is described by Reebok officials as the company's lead branding agency, Berlin Cameron was tapped in January to promote Reebok's running shoes and has seen its role expand. Berlin Cameron presented Reebok director of worldwide advertising John Wardley with a campaign idea that stressed individuality, which Wardley thought would work in a larger brand-building context. Wardley last week said that Berlin Cameron's assignment would not affect Heater and that the Boston-based creative boutique is currently at work on brand assignments. Reebok's overall ad spending has declined in recent years, according to Competitive Media Reporting. In 1996, the Stoughton, Mass.-based footwear maker pumped more than $100 million into media with ads centered around a "Planet Reebok" theme. That figure dropped to just under $70 million in 1997, per Competitive Media Reporting.

Brand Marketing

Reebok's 'Breakout' Spots Take A Swing At No. 1 Nike

Sarah Jones

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Sarah Jones