Reebok 2010 Annual Report Download - page 93

Group Management Report – Our Group Global Brands Strategy 89
Each brand and sub-brand is separately
responsible for bringing its respective
positioning to life, through the creation
of products and communication tools
that not only support the commercial
functions in their day-to-day business
activities, but also provide the platform
and framework for long-term market
share and profitability improvements.
While adidas and Reebok each have
unique identities, heritages, technologies,
designs and reputations, the strategic
principles and methods for driving
future sales growth and profitability
improvements are common to both.
These include:
– Leadership in product innovation
to excite and inspire the consumer
– Marketing and communication
leadership
– Activation and validation via a relevant
set of promotion partnerships
– Extending brand reach and appeal
through strategic partnerships.
Leadership in product innovation
to excite and inspire the consumer
Through Global Brands, we are
determined to address every consumer
in a specific and unique way – with
product initiatives that generate trade
and consumer interest.
We believe that technological innovation
is essential to sustainable leadership in
our industry. By leveraging the extensive
R&D expertise within the Group, adidas
and Reebok continuously challenge
the boundaries of functionality and
performance. In addition, innovation
plays a significant role in differentiating
the adidas and Reebok product offerings
in the minds of consumers.
For example at adidas,
personalisation is one of the brand’s lead
innovation concepts, and it is an adidas
goal to be the most personal sports
brand by 2015. At Reebok, innovation
focus is on fitness and training, where a
priority is creating products that provide
a material benefit to the consumer in
terms of strength, conditioning and
flexibility see Research and Development,
p. 110.
By creating inspiring product and
brand experiences, adidas and Reebok
strive to enhance their positions as
premium brands. This, in turn, is an
important catalyst to sustaining and
improving the brands’ gross margins,
therefore making continuous innovation
an important enabler for future
profitability improvements.
Brand differentiation
02
FITNESS AND TRAINING
The performance brand and
multi-sport specialist
“FIT FOR PERFORMANCE”
FITNESS AND TRAINING
The fitness and
training brand
“FIT FOR LIFE”
Cricket Running American sports Hockey Basketball Tennis
Olympic sports Running Football Regional & American sports Basketball Tennis