Reebok 2010 Annual Report Download - page 15

Absolutely. Firstly, I am glad you haven’t forgotten that I consider marketing an investment and not a cost.
We increased total marketing spend to 13.3% of sales in 2010, returning it to pre-crisis levels. As with any
marketing investment we make, I always scrutinise the returns carefully, benchmarking our performance
versus our own expectations and the competition. And the results, no matter which brand I look at, speak for
themselves, as we seized the enormous potential I saw for our company to leapfrog the competition out of
the recession.
Let’s look at a few examples. At adidas, sales increased 9% currency-neutral to € 8.7 billion, with our
performance in the football category standing out. In South Africa, we witnessed the most successful World
Cup we’ve ever had, generating record football sales well in excess of € 1.5 billion. Through our world-
class partnership portfolio, adidas was front and centre on every podium with adidas long-term partner
Spain winning the World Cup. The adiZero F50 was the top-scoring boot in the competition and one of the
top-selling football boots in the industry. Another great example of marketing success in 2010 can be seen
in our strong rebound in basketball. The Derrick Rose and Dwight Howard commercials, supporting our
positioning as the fastest and lightest brand in the game, have generated our highest sell-throughs in the
category for years. And on the streets, bold collaborations with the likes of Jeremy Scott and unexpected
campaigns such as the highly successful Star Wars Cantina spot, have catapulted sales of our adidas Sport
Style sub-brands up 23% to a record € 2.2 billion. adidas Originals alone now has over 7 million followers on
Facebook, making it the most popular lifestyle brand in our industry.
For Reebok, investments to promote our new initiatives have also been a home run. Reebok’s sales
expanded 12% currency-neutral to € 1.9 billion. EasyTone has been a magnificent hit with global
consumers and customers. Supported by exciting campaigns and fitness testimonials such as those
with Helena Christensen and Kelly Brook, we ended the year on the top spot in the toning category. Even
more pleasing, however, is that we created a second engine for growth in 2010, with the highly successful
launch of ZigTech. This was driven by our largest ever online viral pre-launch campaign. The commercial
success has been phenomenal. Taking these initiatives together, Reebok was among the top three selling
footwear brands during the Christmas period in the USA.
We also made sure that our Other Businesses had the right support to reach their goals. No more so than
TaylorMade-adidas Golf. Sales grew to € 909 million in 2010. And in doing so, TaylorMade-adidas Golf
became the global leader in the golf industry in 2010.
Speaking of investments, 2010 saw a significant increase in your marketing expenses. Speaking of investments, 2010 saw a significant increase in your marketing expenses.
Do you think it was money well spent?Do you think it was money well spent?
To Our Shareholders Interview with the CEO 11