Reebok moves to McCann; marketing spend may cross Rs 25 crore

Company signs up McCann Erickson in place of JWT

When global footwear brand Reebok announced its new advertising partner, an obvious question was to ask the company about its marketing budget for calendar year 2005. But then, MNCs are notorious for keeping secrets. After much cajoling, Subinder Singh Prem, managing director, Reebok, revealed that the company planned to allocate some 10 per cent of its projected turnover to promoting brand Reebok this year.

Considering that the company had clocked a turnover of Rs 250 crore during January-December 2004, it would not be wrong to pre-suppose that the projected turnover for 2005 would be in excess of Rs 250 crore. Now, 10 per cent of Rs 250 crore alone is Rs 25 crore. Therefore, the expected marketing spend for 2005 should comfortably cross Rs 25 crore.

Little wonder that McCann Erickson India president Santosh Desai described the size of the Reebok account as “substantial”.

Advertising for the Reebok brand was in JWT's custody till recently. The account movement was not preceded by an agency pitch. McCann Erickson was selected on the basis on its fresh approach to the brand.

McCann Erickson's Desai told agencyfaqs!: “I believe our fresh approach and our body of work impressed the Reebok management.”

Reebok has not been very aggressive with its advertising over the last one-and-a-half years. While the company did spend 10 per cent of its turnover as marketing expenses, that had very little traditional advertising.

In fact, besides outdoor advertising and the global marketing campaign 'Wear the Vector. Outperform' that broke in October 2003 and ran till mid-2004, the global footwear giant did not come up with any advertisement.

“That was because of the company's decision to spend the marketing budget in pushing the product,” Prem defended. “But all that is going to change,” he promised. “Reebok will be present everywhere. We will be on TV, print, outdoor...” Now that sounds like a good account for McCann Erickson.

Prem, before signing off, mentioned that Reebok had a good relationship with JWT. “....but it was just that Reebok was seeking a fresh perspective for the brand”. That is how McCann Erickson came into the picture.

© 2005 agencyfaqs!