Reebok 2008 Annual Report Download - page 52

048 Group Management Report – Our Group Structure and Strategy — adidas Strategy
adidas Strategy
adidas strives to be the leading sports brand
in the world – an ambitious yet realistic goal.
One major lever to achieve this is the brand’s
broad and unique product portfolio spanning
from apparel and footwear for professional
athletes to premium fashion. It allows adidas
to address multiple consumer needs, tackle
market opportunities from various angles as
well as be less affected by one-dimensional
market risks. This product portfolio as well as
adidas’ commitment to excel in all relevant
segments differentiates the brand from com-
petitors and ensures solid market growth, while
staying true to the brand’s values. Currently,
the brand focuses on fi ve global priorities:
Football, Running, Training, Basketball and
Originals.
Preparing the adidas business for the future
Like every world-class athlete, adidas is continuously trying
to be faster, stronger and thus more competitive. To further
focus on becoming a more effi cient organisation, a compre-
hensive “Streamlining Complexity” programme commenced
at the beginning of 2008. The objective is to increase the effi -
ciency of how adidas brings concepts to market, defi ning clear
responsibilities, and ensuring optimal external results in the
marketplace. The programme is also designed to help adidas
reduce costs. In 2008, for example, adidas already achieved a
signifi cant article reduction that will drive improvements in net
sales per article. In addition, this will reduce workload in the
creation area going forward, facilitating higher focus on key
product initiatives. The Streamlining Complexity programme
will continue in 2009, providing a platform to maximise future
brand profi tability and a more dedicated focus on the brand’s
core strengths.
Innovation leadership through personalisation
adidas’ innovation philosophy encompasses every facet of the
brand’s business – from product design and development to
brand marketing, promotion partnerships and distribution. In
this area, personalisation represents a key focus. Personalised
product concepts at adidas include:
— Interactive product concepts such as miCoach – an indi-
vidual training system launched in 2008, which can sense,
understand and adapt to the consumer’s needs.
— Customised solutions such as the mi Originals platform or
the TUNIT™ football boot concept, which offer consumers the
opportunity to specify certain product features.
— A broad selection of well-defi ned product families such as
adiSTAR®, adiZero™ and Supernova™ and technologies such
as CLIMA, TECHFIT™, FORMOTION™ and BOUNCE™, offering
consumers extensive choice, according to their individually
defi ned needs and requirements.
In marketing and distribution, personalisation includes provid-
ing tailor-made offerings – be it online or in stores. Personali-
sation will be the brand’s lead innovation concept and a driving
force of the adidas business going forward. It will guide all
efforts in product design and development, (digital) marketing
and distribution and it is adidas’ goal to be the most personal
sports brand by 2015.
Partnership network strengthened
The utilisation of promotion partners such as federations,
teams, leagues, events, individuals and designers is an
important part of the brand’s strategy. This not only serves
to showcase the credentials of adidas products in the perfor-
mance arena, but also to facilitate the extension of the adidas
brand in the sport-inspired lifestyle market. In 2008, the
Sport Performance division further strengthened its promo-
tional partnership network. In November, adidas announced
a long-term partnership with the IAAF. Under this agreement,
adidas will be the offi cial IAAF athletic sponsor and licen-
see product supplier, a partnership that incorporates every
aspect of athletics, and makes adidas the Offi cial Sponsor
of the 2009 IAAF World Champion ships in Berlin. The brand
extended contracts with two of the world’s most recognised
football clubs: AC Milan and Ajax Amsterdam. Furthermore,
the Russian Football Union was added as a partner – an impor-
tant step for the brand’s future success in the Russian market.
Also, the sponsorship deal with the All Blacks, New Zealand’s
iconic rugby team, was extended. In the Sport Style division,
adidas has created a new platform – Originals by Originals –
to increase its collaboration with some of the world’s leading
designers. Season after season, this programme will allow
adidas to offer consumers cutting-edge footwear and apparel
that refl ects the diversity and creativity of the designers who
work close to the brand. Jeremy Scott, Alyasha and Kazuki
have each created mini collections for the launch of this initia-
tive in spring 2009.