Taking it back to 2004 in the hockey equipment industry: Reebok acquired the brand CCM. The takeover came at a time when CCM was losing its customers to other established brands such as Reebok and Bauer. Rather than integrating the two brands into one product, Reebok chose to keep the brands separate and create products under both lines of hockey equipment. This strategy proved to be profitable for the company in the first few years. Unfortunately, in recent years, both lines of equipment have decreased in customer popularity due to the emergence of Bauer as a leading brand in the sport of hockey. As I have worked at a hockey retailer for just over a year, I have had the privilege of first-hand experience on the general vibe around each brand of product and the hype is always revolving around Bauer. When the Reebok-CCM product reps come into the store to show staff the new product, the description of the product is always in relation to what Bauer currently provides to the market: “Our new CCM Tack skate fits similar to Bauer’s MX3 skate; Our CCM Tack stick has a similar kickpoint to Bauer’s MX3 stick”. In contrast, when Bauer product reps come into the store, they simply describe their product and the improvements they are bringing to the market. Reebok-CCM has made attempts to differentiate itself by producing top of the line equipment at a lower price point than competitors such as Bauer. Again, consumers realize the far better technology infused into Bauer’s equipment and are willing to spend the extra money for it. Most recently, Reebok-CCM has begun to discontinue the line of Reebok. More specifically, the company has taken the Reebok Ribcor stick and re-introduced it to the market as the CCM Ribcor. The stick still has the exact same design as before with a few improvements and the brand name CCM painted on the stick. Reebok-CCM can’t expect to gain market share by sustaining innovation. The company needs to create a disruptive innovation in order to compete with top brands like Bauer. It’s unfortunate that a prior leading brand, Reebok, has been forced to discontinue its original brand from a loss of focus due to the acquisition of CCM. The competition of brands within a company itself isn’t sufficient, especially in the hockey industry.
Bauer Sponsor – Alex Ovechkin | Washington Capitals
CCM Sponsor – John Tavares | New York Islanders
Sources:
CBC News, “Reebok to buy CCM“, CBC News, April 8th/04