Reebok 2008 Annual Report Download - page 61

adidas Group Annual Report 2008 057
Building on adidas Golf’s strength in footwear and apparel
adidas Golf’s steady commitment to developing great- looking,
great-feeling and performance-enhancing products has
made it the fastest-growing footwear and apparel brand in
golf during the last three years. The introduction of industry-
leading high-performance golf shoes such as the TOUR360,
the TOUR360 II and the POWERBAND has helped adidas Golf
extend its position as the top-selling footwear brand in Japan
and advance its standing as a strong competitor in the global
golf footwear market. adidas Golf intends to expand its posi-
tion in golf footwear in the medium term by further leveraging
adidas’ strength in footwear technologies and by building on
its successful TOUR360 and POWERBAND franchises.
In apparel, adidas Golf positions itself as the most inno-
vative
performance brand in the game by utilising adidas
CLIMACOOL®, CLIMACOOL® Motion, CLIMA Compression and
CLIMAPROOF® technologies in adidas Golf apparel products.
adidas Golf was the fi rst major brand to incorporate technolo-
gies like these into golf apparel, making the brand the clear
leader in technological innovation. adidas Golf is committed to
growing its apparel business by continuing to incorporate lead-
ing adidas apparel technologies into golf products, a strategy
that will help the brand achieve global market leadership in the
category in the medium term. Also, the integration of adidas
Golf and Ashworth has extended the segment’s distribution
capability from over 4,000 to 5,000 green grass retail accounts,
creating further distribution potential for adidas Golf.
Authenticity through Ashworth
The acquisition of Ashworth presents TaylorMade- adidas Golf
with a unique opportunity to establish a lifestyle business.
Through the combination of adidas Golf and Ashworth, the
segment is now the leading manufacturer in the golf apparel
market. The acquisition allows adidas Golf to sharpen its
focus and leadership in performance apparel, while under
its new multi-brand approach Ashworth can be refocused to
golf lifestyle. Its roots in golf and authenticity as a golf brand
provide a key differentiator from other golf lifestyle brands.
From a product perspective, the brand will primarily focus
on extending its leadership in functional cotton products that
deliver a modern look and will prioritise the men’s segment. In
line with TaylorMade- adidas Golf’s strategy, Ashworth will also
seek to build Tour visibility and credibility utilising partners
such as Tour professional Fred Couples. While maintaining two
distinct brands, to maximise the commercial opportunity of the
acquisition, all operating and go-to-market functions have
been fully integrated to take advantage of operational and fi xed
cost synergies.
Marketing excellence as a key success factor
Well-coordinated and consumer-relevant marketing is para-
mount to attaining sustainable market leadership. To achieve
that, TaylorMade- adidas Golf has combined product marketing,
brand communication and retail marketing into one fully-
integrated global marketing team. This team uses a variety
of strong marketing tools to achieve its objectives. Product
launches are followed by point-of-sale support, in-store com-
munication and customer fl ow management support (e.g.
assistance in reducing waiting times for consumers) to drive
product sell-through. Likewise, TaylorMade- adidas Golf’s lead-
ership and presence on the world’s major professional golf
tours is imperative to increasing brand traction among con-
sumers. A multitude of prominent Tour professionals wear and
play TaylorMade- adidas Golf products, including Kenny Perry,
Retief Goosen, Sean O’Hair, Darren Clarke, Natalie Gulbis,
Nick Faldo, Mike Weir, Andres Romero, Fred Funk and global
golf icon Sergio Garcia, with the logos of the brands clearly
displayed on their bags, hats, apparel and footwear. Further,
effi cient product lifecycle management plays an important role
in helping TaylorMade- adidas Golf achieve optimal market-
place results. In summary, marketing expertise and excellence
are critical tools that TaylorMade- adidas Golf uses to drive
sustainable growth.
Further extending and segmenting distribution
TaylorMade- adidas Golf works with retail partners that possess
the skills to effectively showcase the performance advantages
of TaylorMade, adidas Golf and Ashworth products. Core chan-
nels include green grass retailers, off-course golf specialty
retailers and sporting goods retail formats with golf-specifi c
departments. Focusing on strategic and key accounts (golf
specialty and sporting goods retailers) in the distribution mix
allows TaylorMade- adidas Golf to position its clubs, balls, foot-
wear and apparel among the top-selling golf products in these
retail channels.
TaylorMade- adidas Golf will continue to work closely with its
strategic accounts in 2009 and plans to increase its efforts to
extend brand presence at smaller retailers and on-course golf
shops, where great opportunities exist. To support growth and
at the same time avoid overexposure to certain accounts or
an oversupply in the market, TaylorMade- adidas Golf pursues
a selective distribution strategy based on a clear segmenta-
tion of its product offering at retail. The company also utilises
existing adidas infrastructure, particularly own-retail stores, to
distribute adidas Golf products and drive growth in emerging
markets.
Pricing strategy refl ects brand positioning
TaylorMade- adidas Golf’s pricing policy mirrors the positioning
of its three brands. As a result, TaylorMade’s pricing strategy is
to dominate the market at premium price points and compete
aggressively in the high-volume mid-price segment. adidas
Golf supports its market reputation as the innovation leader
by selling its products primarily at premium price points.
Ashworth positions products in the mid- and premium-price
categories, and focuses on distribution through golf special-
ists. Market share expansion, particularly in golf equipment,
is driven mainly by the ability to deliver best-in-class lines
of products at multiple price points. In 2008, two examples
of TaylorMade- adidas Golf’s success with this strategy are
the Burner® (medium price) and r7® Limited (premium price)
drivers, and the POWERBAND (medium price) and TOUR360
Limited (high price) footwear.