Target Markets of Skechers and Reebok

When talking about footwear giants that have made an impact, brands that come to mind are Adidas, Nike, Reebok, and Skechers. Since 2005, Reebok has become a subsidiary of Adidas, while the founder of Skechers had been a part of a LA Gear team but later began his own shoe company. However, both of them managed to acquire more than $5 billion in net revenues each. The secret behind this huge success depends on many factors, but we will focus mainly on the marketing and segmentation strategies of Skehcers and Reebok. Let’s start by analyzing their marketing campaigns and target markets.

Let’s start our blog by discussing a campaign example of Shechers.

One of the most prominent advertising campaigns that was launched back in 2017 was a celebrity-driven advertisement with Camila Cabello. The campaign was focused mainly on a GEN Z segment and young millennials who are part of Camila’s fan base. In one of her interviews, Camila talked about her being a part of Skechers’ journey in their philanthropic endeavors. This initiative helped Skechers increase its sales and granted Camila a chance to utilize her success to give back.

Camila Cabello is one of the most influential celebrities meaning that a celebrity endorsement with her would reach millions of people around the world. The commercial was shot in Spanish and English since, as you might already know, Camila Cabello has Cuban/Mexican roots. In the ad, Camilla is featured in various Skechers D’lites sneakers that are colorful and highlight her style. In the video, the celebrity dances in Latino beats and talks about how her sneakers give her inspiration.

This advertising campaign was a real jaw-dropper since the company managed to raise its revenues by 7.5 percent. By 2018 Skechers sales have gone up to $1.18 billion, which means that this celebrity endorsement was a successful marketing strategy.

Now it’s time to analyze the slogan of the company and find out its communication strategy.

Skechers puts a lot of effort into their selling and branding strategies, which is why it has a unique slogan, that is “Unseen. Untold. Unsold.”

As the slogan indicates, the company tries to attract customers by keeping things mysterious. It hints them that the products they sell are something never seen before are unsold and untold to anyone. This way, the brand wants to make its customers feel special. They use scarcity and exclusivity to make their customers feel like insiders, making their products more desirable.

In my opinion, this tagline provokes an interesting curiosity for the customer. It makes you think and use your imagination to explore the variety that the brand creates. Something that is unseen, untold, and unsold triggers a buyer’s interest and makes them want to uncover the unknown.

Let’s move on to the segmentation strategy of Skechers.

To find out their primary target market, let’s look at this commercial by Skechers.

The commercial features models wearing Skechers men’s streetwear. The video also features professional video editing and camera angles to make it stand out more. Other than that, there are scenes where models are captured in poses like jumping or walking in slow motion or reverse, which cannot be seen very often in the modeling and design industry. Additionally, there are scenes where the models are confidently walking with their partners, which shows their prioritization of recognition and status.

Based on the preferences of the people featured in the video and how Skechers made those a reality, we can assume that Skechers’ main target audience is the Breakouts segment.

So, who are Breakouts?

Lifestyle and Values of the segment

Breakouts are status-oriented and seek to acquire material goods.

Their desire to move up in life means they are ready to make sacrifices to get ahead. Their success factor is money; hence they prioritize money in a career rather than personal fulfillment. In this case, their appearance is a way to showcase their achievements. Breakouts are poor savers and enjoy spending their cash.

These people like standing out in a crowd and want to stand out through their appearance to make up for their lack of education. They are brand-oriented, thus will always go for branded goods. Additionally, breakouts judge people by the cars they are driving. They are self-absorbed people that live for adventures and personal enjoyment.

Attitude to Shopping

When it comes to shopping, Breakouts are not very brand loyal and love switching to what’s new and trendy. They are mostly early buyers that get a hand of an item as soon as they become affordable. Breakouts purchase things just for the sake of having it, and the majority of these purchases are clothing. Quality is more important to them, but most of the time, they cannot afford premium goods, so they mostly go for trendy mainstream brands.

Some interesting facts about Breakouts.

• Breakouts are far from a healthy lifestyle and environmental issues. This means they don’t exercise, eat whatever they want, and never worry about the pollution.
• Their go-to leisure activity is hanging out with friends in pubs and cafes. Cultural events, traveling, and sports do not interest them.
• Media consumption is limited to entertainment. Their primary media source is TVs. Breakouts also read the press, but they focus mainly on fun topics. Radio usage is above average.

16 Personalities (what is for your business?)

Skechers are firmly holding their place in the market of sportswear. Surely, there are differentiating characteristics behind their worldwide success. Their products enjoy the love of customers, but the companies achieved this mark by a more complex approach than we might think. Segmentation strategy is of equal importance when developing a marketing strategy. In our case, Skechers and Reebok target the segment of Breakouts.

Breakouts, like the name would suggest, are people who want to move up in life and be respected for their achievements. Money and recognition are the signals of “making it”. They seek control over people and resources, but feel comfortable working in teams. Their appearance and image are a way to show their achievements. Whether they are real or pretended.

Targeting Breakouts lies beneath the performance of Skechers. Product development and segmentation strategy should develop simultaneously in interconnection, by taking into account the factors in both. It is a cycle which brings to both successful products and satisfied customers. With the help of our e-book 16 Personalities, you will join Skechers and Reebok in success stories of becoming great. Our book has a lot more information on Breakouts and 15 other buyer personas, with additional tips on marketing and negotiation. 

Now it’s time to switch gears and discuss a campaign example of Reebok.

In March 2019, Reebok came up with a creative advertising campaign called “Sport the Unexpected.” This was a new initiative for the company as it mixed Reebok sportswear with fashion. The company wanted to combine those two since many people want to connect sport, lifestyle, and pop culture. According to the company’s marketing vice-president, this campaign was the brand’s first fully integrated campaign.

The commercial is called “Storm the Court,” We see a girl wearing Aztrek Double sneakers show up at a street-style basketball game. She hypnotizes players as she starts dancing to the beat, and soon all the people near the field start dancing along. This commercial was the first from the “Sport the Unexpected” series, while the second one is “Back Where We Started.”  

Until “Sport the Unexpected,” Reebok came up with campaigns that were by and large very similar. However, this campaign suggests an entirely different outlook on sport and lifestyle. As today’s youngsters lean towards more sporty yet stylish, Reebok wanted to grant people the chance to wear what’s unexpected.

What’s more important is that the commercial does not make any fashion or sports claims. The goal was to offer something unconventional. Additionally, somehow with this campaign, Reebok made a brave decision to go against brands like Nike, Adidas, and Skechers who carry a different philosophy.

Now let’s identify the communication strategy of Reebok and discuss its slogan.

The company’s slogan has changed over the years. At the moment, Reebok’s tagline is “i’m what I am,” which was a result of an advertising campaign launched in 2005. The slogan communicates the company’s desire to preach individuality.

This tagline is marketed to those with strong identities. This is why they featured celebrities like J-Z, 50 cent, Christina Ricci, etc. in the campaign. The idea was to spread individuality both into its products and consequently, their customer base.

I believe this way; Reebok propagates acceptance and self-love. It shows how important it is for people to stay true to their originality and even eccentricities. At the same time, it aims to make its products stand out by promising footwear and apparel that reflects customers’ distinctive individualities.

Moving on, let’s explore and analyze the target markets of Reebok.

To do so, let’s hop back to the “Sport the Unexpected” campaign.

The commercial starts with a scene in a beauty salon featuring Cardi B. We see her discussing a guy with another lady, meanwhile getting her hair done. Afterward, all the people in the salon stop for a moment as they notice Cardi’s untied Reebok sneakers. Everyone sits there surprised when the unexpected happens. Apparently, Cardi “nails” the situation when her nails miraculously start to grow long and tie her sneakers back. At this point, people continue observing Cardi with amazed yet excited faces.

Featuring such a public figure like Cardi B, that always stands out from the crowd confidently rocking her Reeboks, leads us to only one conclusion. Here we are dealing with a segment called Peacocks.

So, who are Peacocks?

Lifestyle and Values

Peacocks are usually very self-focused. They are attention seekers that always stand out in the crowd. In this male-dominated segment, people tend to opt for clothing, topics, and communication with those who will make them be noticed. When it comes to confidence, it is usually used to make their inner insecurity, which is due to their tendency to stand out.

Peacocks are organized individuals that actually follow up a routine. Failure can never stop them since they are quite perseverant. At the same time, they don’t stand the idea of them failing, so they would always blame it on outside factors. Peacocks are extremely sociable; that’s why some of their friends aren’t really true ones. Nevertheless, when it comes to personal relationships, they avoid deep emotions and connections.

Attitude to Shopping

When it comes to shopping, they always go for goods that make them stand out. This is the main reason why they would still choose brands. However, as their incomes are not very high, they try to find good deals whenever possible. They give preference to quality since it’s crucial to stay believable in their circle of friends.

Peacocks are brand loyal and can stick to one brand if it accurately reflects their style and overall themselves. They pay attention to trends and fashion, so they go to magazines and TVs to get inspiration. Being as confident as they are, Peacocks are sure that they know everything about trends better than any expert.

Here are some interesting facts about Peacocks.

• Peacocks have mid to high education levels and always want to get at the top of their career.
• Money has a principal value for them and can be an indicator of success.
• In their free time, they enjoy working out and socializing in the gym. They also visit clubs and cinemas very often.
• Peacocks always try to balance their modern outlooks on life with specific traditional values.
• Their environmental consciousness is connected to modern trends rather than genuine care.

To conclude, I hope you could find answers to the questions related to the marketing and segmentation strategies of Skechers and Asus. For more similar posts, click the homepage button.