Reebok 2010 Annual Report Download - page 86

82 Group Management Report – Our Group Global Sales Strategy
Global Sales Strategy
The Global Sales function is responsible for the commercial activities of the adidas and Reebok brands. The function is
organised in three distinctive channels – Wholesale, Retail and eCommerce. By catering to these three business models,
the Group aims to service multiple customer and consumer needs to fully leverage brand potential, be more responsive
to market developments and manage channel synergies by establishing best practices worldwide.
Global Sales defines strategic
priorities until 2015
The Global Sales function directs all local
market organisations responsible for the
distribution of the adidas and Reebok
brands. The key priority of Global Sales is
to design and implement state-of-the-art
commercial strategies that ultimately
engage consumers with rewarding point-
of-sale experiences.
As part of our Group-wide strategic
business plan (Route 2015), which
defines strategies and objectives for
the period up to 2015, the Global Sales
function has defined three strategic
priorities:
– Increase the share of controlled space
to 45% of sales by 2015
– Implement an integrated distribution
roadmap to ensure further growth
and maximise brand potential in key
demographic locations
– Support growth initiatives in the Group’s
three key markets North America,
Greater China and Russia/CIS.
Focus on controlled space
Our brands must be competitive at
the point of sale, based on availability,
convenience and breadth of product
offering. As a result, we are continuously
refining our distribution proposition
with a strong focus on controlled space.
Controlled space includes:
– Own-retail business
– E-commerce
– Mono-branded franchise stores
– Shop-in-shops
– Joint ventures with retail partners
– Co-branded stores with sports
organisations and other brands.
These formats provide us with a high
level of brand control, as we either
manage the stores ourselves (i.e. own
retail and e-commerce, managed by our
Retail segment) or we work closely with
our partners (e.g. for mono-branded
franchise stores, shop-in-shops, joint
ventures, co-branded stores, managed
by our Wholesale segment) to ensure
the appropriate product offering and
presentation at the point of sale. We
intend to increase our controlled space
initiatives to 45% of Group sales by 2015.
This will mainly be driven by growth in
our Retail segment and the expansion of
our own-store base as well as by growth
initiatives within our Wholesale segment,
such as the expansion of our franchise
business.
Integrated distribution roadmap
to increase brand presence and
market share
In order to increase our global brand
presence and ensure further growth of
our business, our Global Sales function
has set up a comprehensive initiative
called “integrated distribution roadmap”.
The initiative encompasses a joint
approach between our three channels
to identify where we want our brands to
be represented and in which distribution
format in key markets. The initiative will
allow us to define how best to capture
the consumer in the biggest and most
attractive cities around the world without
cannibalising our brands and distribution
mix. The roadmap is designed to ensure
market share growth in underpenetrated
affluent cities.
Focusing on three “attack” markets
As part of our strategic business plan
Route 2015, the Global Sales function has
identified North America, Greater China,
Russia/CIS, Latin America, Japan, UK
and India as key growth markets see
Subsequent Events and Outlook, p. 174. Of those
markets, the three attack markets North
America, Greater China and Russia/CIS
are targeted to contribute over 50% of
the sales increase we anticipate over the
period. To ensure these attack markets
receive the focus and resources needed
to achieve their goals, these markets
report directly to adidas Group CEO
Herbert Hainer.