Reebok 2009 Annual Report Download - page 27

TO OUR SHAREHOLDERS Interview with the CEO 23
HERBERT HAINER
The sporting goods industry is one of the most competitive consumer spaces in the world.
And to be successful, we must have a clear profile towards our target consumers. Therefore,
I do not consider marketing a cost – but rather an investment. Each year we make this
investment to secure the highest possible return on our key assets – our brands and our
products. As such, all of our brands have an extensive partnership portfolio of high-profile
endorsees and regularly bring new global marketing concepts to life, which can be easily
leveraged to create simple and powerful brand messages and support an array of product
offerings. In addition, we also endeavour to be at the forefront of new communication
techniques such as digital social networks or digital broadcast mediums, particularly as
information flow becomes faster and faster. These methods are providing a new scope of
consumer experiences in a real-time and cost-effective way.
In 2009, we limited marketing to 12.2% of sales, which equates to an absolute decline
of € 160 million. From today’s perspective, I do not believe this level is appropriate as I am
convinced there is a major opportunity for all of our brands to capitalise on a rebounding
consumer environment and the opportunities we have in the current year. Therefore, in
2010, we will go on a marketing offensive. For example at adidas, we will use the “EVERY
TEAM NEEDS …” platform to transcend our entire football offering ahead of the 2010 FIFA
World Cup™. To keep momentum going in the adidas Sport Style division, we will launch a
new campaign which takes a close look at the “Street Where Originality Lives”. This highly
visible campaign will once again include musicians, skaters, athletes and even STAR WARS™
characters. At Reebok, we will increase marketing efforts to support the turnaround of
the brand with our new global campaign which uses the motto “Ree”, as Reebok strives to
“ReeDefine” sport and style. And TaylorMade-adidas Golf will secure and drive market shares
with campaigns like “TaylorMade versus TaylorMade” in metalwoods and “Project Burner” in
irons to keep momentum going. With this kind of support against a backdrop of major sporting
events and powerful product concepts, I believe we can use our marketing to great effect this
year to outgrow our major competitors.
HERBERT HAINER
Innovation is our most discerning competitive advantage. In
everything we do, we perpetuate our founder’s commitment
to the athlete, pride in what we do, quality and love of sport
and a sporting lifestyle. As you go through this year’s annual
report aptly titled “Every product tells a story”, you will see
how our innovative products have taken us to the pinnacle of
world sport. Whether it’s Lionel Messi scoring the winning
goal in the Champions League final, Santonio Holmes’ MVP
performance at Super Bowl XLIII, Yong-Eun Yang’s incredible
2009 PGA Championship victory, or Blanka Vlasic’s gold
medal high jump at the IAAF World Championships in
Berlin, they all performed at the top of their game with
products from the adidas Group. And this is what also
makes me most excited for the future. When I look around
the marketplace today, I do not see any other company with
a product pipeline as compelling, original or technologically
advanced. Whether it’s adidas’ miCoach training system,
Supernova™ Glide, TECHFIT™ PowerWEB™, or Reebok’s
EasyTone™, RunTone™ and ZigTech™, or TaylorMade’s
r9™ SuperTri and Burner® SuperFast drivers or Rockport’s
DresSport® – we are the most comprehensive sporting
goods company in the world. There is a product energy
at all of our brands which I am convinced will support
our Group’s development well into the future. You know it
from adidas and TaylorMade. And now you will see it from
Reebok as well.
QUESTION
Marketing expenses are one of your
major costs. Why is marketing so
important to you and how will you
approach marketing spend in 2010?
QUESTION
As you look out to this year and
beyond, what do you believe is your
biggest competitive advantage?
Herbert, thank you for this interview.