Social media marketing at Reebok India — the dilemma of ROMI and beyond

Abstract

Subject area Marketing management, digital marketing, advertising and promotion management, and technology management. Study level/applicability The case is suitable for BBA and MBA students. It can also be considered in executive education programs. Case overview Venkatesh Kothapalli, the marketing head at Reebok India headquarters at Gurgaon, was in a decision dilemma about the effectiveness of using social media marketing and its employment in the current scheme of marketing strategy being planned. He had been able to generate a fair amount of awareness and excitement amongst potential users on Reebok's social media sites. However, these often fail to convert into topline sales. In addition, Alex his superior had given clear instructions that no separate budget would be earmarked for this type of medium. So Venkatesh had to divert some parts of his existing budgets (which he did from the PR budget and the DM budget) and channel these into the new area of social media marketing. This had also created concerns in Venkatesh's mind about the possibility of the new media not showing favourable results while budgets of the traditional and tried and tested media like PR and direct marketing were being chopped. Expected learning outcomes These include: understanding the dilemma of an organization's adoption of newer marketing tools as opposed to traditional marketing practices; evaluating the role of newer mediums like social media marketing and its long term and short term relevance; understanding the origins and development of social media marketing to grasp the full scale of its usefulness; and appreciating the complexities of measuring the effectiveness of social media marketing initiatives. Supplementary materials Teaching notes are available, please consult your librarian for access.