Reebok 2009 Annual Report Download - page 58

54 GROUP MANAGEMENT REPORT – OUR GROUP Global Sales Strategy
Global Sales Strategy
In 2009, the adidas Group established the Global Sales function, to promote and fully leverage the commercial activities of the
adidas and Reebok brands. The function is organised into two distinctive channels – Wholesale and Retail. By catering more
specifically to these two business models, the Group is in a better position to act on multiple customer and consumer needs, be
more responsive to market developments and manage channel synergies by establishing best practices worldwide.
Excellence in execution in all
markets and channels
In 2009, the Global Sales function was
formed to direct all local market organi-
sations responsible for the distribution of
the adidas and Reebok brands. A crucial
element to achieving commercial success
is the understanding that brand presen-
tation must be competitive in an environ-
ment where consumers make their final
purchase decisions based on availability,
convenience and breadth of product
offering. Therefore, the key priority of
Global Sales is to design and implement
state-of-the-art commercial strategies
that ultimately engage consumers with
interactive product and rewarding point-
of-sale experiences.
To better achieve these goals,
Global Sales is organised into two oper-
ating segments, Wholesale and Retail,
recognising that different skill sets
are required to manage these distinctive
channels.
Wholesale is defined as every business
where the consumer pays his purchase
to a non-Group retailer, while Retail is
defined as any business where the con-
sumer pays his purchase directly to an
entity of the adidas Group.
As part of their mandates, these
segments are also primarily responsible
for the delivery of the short-term opera-
tional targets and financial goals for the
adidas and Reebok brands. As such,
following the Group’s reorganisation,
Wholesale and Retail are the primary
operating segments of the adidas Group.
Wholesale: becoming the leading
sales organisation
The main strategic objective of the
Wholesale segment is to deliver profit-
able market share growth by becoming
the most effective and efficient sales
organisation in the sporting goods indus-
try. To realise this, the Wholesale sales
organisation takes the go-to-market
strategies handed over by Global Brands,
and commercialises them within a clearly
defined framework across various distri-
bution channels.
Our most important distribution chan-
nels are sporting goods chains, depart-
ment stores, independent sporting goods
retailer buying groups, lifestyle retail
chains and e-tailers. In this respect,
Wholesale strives to establish strong
partnerships with the most dynamic
retailers in their respective channel of
distribution by offering best-in-class
and tailored services. The principles to
achieve this include:
Differentiating and segmenting
product offering to match channel
strengths.
Harmonising and standardising of sell-
ing models and processes to achieve
efficiency and cost leverage and reduce
working capital requirements.
N °-
01
WHOLESALE STRATEGIC PILLARS
Building strong partnerships
with leading and most dynamic retailers
Activating our brands at retail
Leading in cost to serve, best-in-class in efficiency
Leading in all channels
TO BECOME THE
GLOBALLY LEADING
SALES ORGANISATION IN
THE SPORTING GOODS INDUSTRY