Reebok 2011 Annual Report Download - page 66

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
62
2011
02.2 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 in
order to fully leverage brand potential, be more responsive to market developments and manage channel
synergies by establishing best practices worldwide.
02.2
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, the
Global Sales function has defined three strategic priorities:
– Increase the share of controlled space to 45% of Group 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 “attack” 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
– eCommerce
– 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. Retail and eCommerce) or
we work closely with our wholesale partners (e.g. for mono-branded
franchise stores, shop-in-shops, joint ventures and co-branded
stores) 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 (2011: 36%). 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 (IDR) 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 compre-
hensive initiative called “Integrated Distribution Roadmap”. The initia-
tive encompasses a joint approach between our three channels,
allowing 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 metropolitan areas
such as New York City, where the IDR has helped us to clearly map out
several potential new locations for increasing our brands’ presence,
which we are now beginning to execute upon.
Focusing on three “attack” markets
The Global Sales function has identified North America, Greater China,
Russia/CIS, Latin America, Japan and the UK as key growth markets
SEE SUBSEQUENT EVENTS AND OUTLOOK, P. 163 . Of these markets, the three attack
markets North America, Greater China and Russia/CIS are targeted
to contribute over 50% of the sales increase we anticipate as part of
Route 2015.