Adidas 2002 Annual Report Download - page 33

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31
CONSUMER-ORIENTED STRUCTURE /// We believe that one of our competitive advantages
is in structuring our organization in a way that unites our brand values with the needs and
demands of our consumers. This is a deliberate move away from the traditional industry
approach along footwear, apparel and hardware lines. We have already structured the
entire marketing and operations activities in this way. Our next priority is to extend this
model to our global sales function, and at the same time to increase our consumer research
to continually expand our knowledge about our primary target groups.
DESIGN AND INNOVATION LEADERSHIP /// Consumer buying and brand perception in
the sporting goods sector are intrinsically linked to cutting-edge design coupled with
market-leading, visible technologies that are easy to understand. At adidas-Salomon, we
are committed to keeping our product pipeline full with new, close-to-market design and
technologies. We plan to launch at least one major new technology or technological
evolution per year to excite consumers and demonstrate our continued commitment to
market innovation.
DEVELOP LEADING POSITIONS IN ALL OUR MAJOR MARKETS AND CATEGORIES /// We
are in the business to win. We strive to have number one or number two positions in all the
markets and categories that we compete in. On a regional basis, our efforts start in our
home market Europe, where we are seeking to extend our leadership position with our
“Winning in Europe” program to drive both top- and bottom-line growth in the coming
years. In North America, our first goal is to achieve an undisputed number two position.
With a footwear market share of 20% in the next three to five years. In Asia, we are striving
to become the market leader with top positions in the region’s major markets. And in Latin
America, our goal is to be the fastest growing sporting goods supplier for the next five
years.
EXCELLENCE IN EXECUTION /// Superior products and marketing are vital to success in
our industry, but sales are often made on the basis of who consistently delivers on time,
ensures best quality and is willing to go the extra mile for retail partners. These are areas
where our industry has a long way to go versus other industries, and for adidas-Salomon
we are placing a high priority on executional exellence. Our efforts to shorten and cus-
tomize the global supply chain, to ensure best-practice social and environmental standards
and ongoing commitment to customer service are just a few examples of our progress in
this area.
FOCUS ON FINANCIAL HEALTH /// Our Group knows that while top- and bottom-line growth
is critical to our goal to be the global leader in the sporting goods industry, performance
also needs to be measured by other criteria. The indicators of financial health that are
highest priorities for us include operating margin, working capital as a percentage of sales
and debt reduction. We intend to make visible improvements to the operating margin for
each of the next three years. Working capital as a percentage of sales should continue to
decrease
annually during the same period. And with respect to financial leverage, our goal
is to reduce
the Group’s debt by at least € 100 million per year.