Reebok 2006 Annual Report Download - page 60

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Structure and StrategyGroup Management Report
056 ANNUAL REPORT 2006 adidas Group
Sports Licensing: Continued Growth in American Sports
Being the only major brand that has official partnerships
with the NFL, the NHL and MLB, Reebok has a unique posi-
tioning in sports licensing and American sports. We are the
only brand offering footwear products with team logos of all
these three major American sports leagues. Our role as Offi-
cial Outfitter of the NFL and as exclusive licensee of the NHL
enables us to significantly increase our sports credibility in
our biggest market for the Reebok brand and to capitalize on
revenue opportunities in the licensed apparel category. The
strong position in North America also represents the ideal
basis to build a global platform in sports licensing. By lever-
aging our partnerships with outstanding athletes such as
Peyton Manning, Vince Young or Sidney Crosby through mar-
keting campaigns, we will further reinforce our brand image
among consumers and retailers. We will continue to aggres-
sively and strategically market our partnerships to drive sales
growth in sports licensing but also supplement our licensed
apparel and footwear offering with performance gear for
the respective sport. In hockey, for example, we support our
licensed apparel range with Rbk or CCM branded equipment,
fully capitalizing on the market leadership of Reebok-CCM
Hockey.
Regional Initiatives Strengthen Sports Positioning
The basketball and football categories also play key roles in
extending our sports positioning. While our initiatives in both
of these sports will be regional in nature, improving our mar-
ket position in basketball and football will help us strengthen
our global brand presence. By driving our PUMP™ custom fit
footwear technology and further utilizing our partnerships
with individual players such as Allan Iverson and Gerald
Green, we expect to grow in the basketball category in North
America going forward. Our partnership with Yao Ming can
help us to drive our basketball business in China. In football,
our intention is to position Reebok as a credible niche player
and to strengthen the brand’s sports positioning particularly
in Europe. Our partnerships with well-known footballers
such as Thierry Henry and Andriy Shevchenko will enable us
to offer signature products that fit their individual styles and
personalities.
Branded Apparel: Redefining the Category
We consider branded apparel as the most important global
growth opportunity for the Reebok brand. To realize this
opportunity, we intend to build a world-class cross-divisional
global apparel organization. This group will utilize the proven
capabilities and the infrastructure of adidas, particularly in
the areas of sourcing and supply chain excellence. We are
revamping product design and development processes,
adopting adidas best practices where possible. In addition,
we are building a strong apparel technology platform includ-
ing, for example, our successful “Play Dry” concept. By creat-
ing global ranges that include region-specific executions and
focusing on the unique fit of our products, we aim to posi-
tion the Reebok brand as a credible and competitive market
player in the branded apparel category.
Women’s: Delivering the Perfect Fit
The women’s segment has always been one of the key
strengths of the Reebok brand. To further extend our lead-
ing position in this important segment, we will continue to
strengthen our profile as the brand delivering the perfect fit
for women. Our goal is to offer innovative women’s footwear,
apparel and accessories across our sports and lifestyle cat-
egories. Our goal is to enable women to express their individ-
uality. Through fashionable and at the same time functional
products, emotional marketing concepts and partnerships
with top athletes (e.g. Amélie Mauresmo, Carolina Klüft,
Nicole Vaidisova) and other celebrities (e.g. Scarlett Johans-
son) we will show that Reebok is the brand that fully under-
stands the needs of the female consumer.