Reebok 2006 Annual Report Download - page 18

014 ANNUAL REPORT 2006 › adidas Group ›
Your multi-brand approach is unique to the
industry. What advantages do you see
from this strategy and what role does Reebok
play in driving its success?
There is a lot of attention being focused
on Reebok’s current trading. What are you doing
to reinvigorate the brand?
And the success reverberated throughout our organization. Our sales momentum continued, and in some
regions even accelerated, well after the event. I am really proud of these results, and they serve as an inspi-
ration and a reminder to all of us of what we can achieve with the proper focus, dedication and hard work. We
have raised the bar at managing these types of events, and we will lift our game to achieve new heights with
the UEFA EURO 2008™, 2008 Beijing Olympics and the FIFA World Cup 2010™ all on the horizon.
A multi-brand strategy is not a new concept for the adidas Group. We have more experience than anyone
else in the sporting goods industry when it comes to utilizing different brands to attack different market
segments. And now with the Reebok acquisition, we have taken this strategy to the next level. We know that
there is also a limit to how far a single brand can be stretched in a particular product category, segment or
demographic. Brand management is our core competency and we believe that with a small number of top-
notch brands, we can mean more to more consumers. And in the long term, this is what market leadership
is all about.
Within our Group, adidas is recognized as the altruistic, premium performance brand with a strong empha-
sis on team sports. Reebok will be positioned within our portfolio to appeal to consumers who define sport
outside traditional convention, prioritizing comfort and fit and celebrating individuality in sport and life.
Reebok will be our brand that focuses on breaking the barrier of combining sport and lifestyle, with exten-
sive crossover collections that utilize the brand’s unique positioning with both women and American sports.
And TaylorMade-adidas Golf will continue to dictate the pace of innovation in the golf industry with the
power of the TaylorMade and Maxfli brands in golf equipment complemented by the strength of adidas Golf
in soft goods.
My vision for Reebok is simple and no different than my vision for our other brands: make the brand desir-
able, with a clear focus on performance. Reinvigorating the Reebok brand will not be an overnight process
and it will take several seasons before we really have the brand firing on all cylinders. There are short-term
challenges which are compounded by difficult conditions in Reebok’s core markets. These and negative
accounting impacts were the reason why Reebok was not earnings accretive in the first year, despite the
underlying profitability of the business. We have told you that we will make investments to address these
issues and to provide additional support to strengthen the brand over the coming quarters.