Reebok 2008 Annual Report Download - page 58

054 Group Management Report – Our Group Structure and Strategy — Reebok Strategy
Challenge in men’s sport
Reebok is a well-recognised men’s sports brand, a product of
its long-standing partnerships with several of the world’s top
athletes, professional leagues and teams. Many of the world’s
most recognisable athletes support Reebok, including Eli
Manning (2008 Super Bowl MVP), Santonio Holmes (2009 Super
Bowl MVP), Alexander Ovechkin (2008 NHL MVP), Yao Ming
(Olympic fl ag bearer for China), and footballers Thierry Henry
(France’s top goalscorer) and Iker Casillas (goalkeeper-captain
of Spain).
Given Reebok’s close collaboration with athletes, the brand
has a clear understanding of athletes’ training needs. In 2009,
Reebok will focus on the largest globally relevant market
segments, formulating a unique point of difference by fusing
running and training into one.
The primary focus is on creating versatile products that help
athletes prepare for their sport irrespective of the discipline.
One such example is the launch of the SelectRide™, an under-
foot cushioning technology that allows the athlete to select the
“train” or “run” mode.
To support this running /training initiative, Reebok formed a
new partnership with British driving sensation Lewis Hamilton,
the youngest ever Formula One champion. Reebok has already
successfully leveraged this partnership in 2008 through its
innovative “The Athlete within the Driver” campaign and will
continue to build on this throughout 2009.
This global focus on running and training will be comple-
mented by a select set of regional category priorities, includ-
ing American football, hockey, baseball and lacrosse in North
America, football in Europe and Latin America, and cricket in
India. The brand holds exclusive, long-term licensing agree-
ments with the National Football League, National Hockey
League and National Lacrosse League in North America, giving
Reebok the exclusive rights to manufacture and market both
authentic and replica uniform jerseys and sideline apparel.
For example, in North America, Reebok’s successful partner-
ship with the National Football League has provided signifi cant
exposure for the brand. As the offi cial outfi tter of the NFL,
Reebok provides on-fi eld uniforms, as well as off-fi eld apparel
products to all 32 NFL teams. This gives Reebok an unrivalled
presence at all NFL games during the season. In addition, the
partnership enables Reebok to drive its licensed business and
has a positive halo effect on the brand’s cleated footwear and
branded apparel business. By utilising individual players such
as Peyton Manning and Eli Manning as brand ambassadors,
Reebok strives to strengthen its connection with consumers.
Revive Classics
Most brands in the sporting goods industry defi ne them-
selves as either a sport or a lifestyle player. Reebok has a long
heritage within the industry based on products that bridge the
gap between sport and lifestyle. Catering to sports lifestyle
consumers continues to be an important pillar of Reebok’s
strategy.
In the past, the brand’s lifestyle business was overly reliant
on certain products, particularly in the Classics footwear seg-
ment. To limit the risk of overdependence on single styles and
build a broad-based lifestyle business for the future, Reebok
has been working over the past three years to limit distribution
of its Classics products to allow the market to recover from
oversupply.
Going forward, to leverage its iconic sports heritage, Reebok
will revive its Classics brand with a refi ned and widened
product range. In rebuilding this business, a key tenet of the
strategy will also be to control distribution by segmenting the
product offering available for retailers as well as keeping a
tight rein on supply. The intention is to reach a new generation
of consumers. Within Classics there will be three collections:
Retro Sports Line, Always Classics and Heritage.
Taking inspiration from its authentic fi tness Classics, Reebok
has remixed iconic models from its past – Freestyle™, Ex-O-
Fit™ and The Pump™ – for the spring /summer 2009 collection,
creating modern versions of them. These new shoes have the
distinct Reebok Classics branding, but have been energised
with a modern look and feel. On November 20th, 2009, Reebok
will celebrate the 20th anniversary of The Pump™, which
revolutionised the athletic footwear industry and was one of
the most successful shoes ever created. Through a partnership
with 20 select retailers around the world, custom collabora-
tions of The Pump™ will be newly developed in 2009 and exclu-
sively launched in select stores in limited quantities see
Reebok Products and Campaigns, p. 138.