Reebok 2011 Annual Report Download - page 93

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
89
2011
02.4 Other Businesses Strategy Reebok-CCM Hockey Strategy
– Reebok-CCM Hockey has formed endorsement partnerships with
many of the best athletes in the world. With development capabil-
ities close to the world’s major leagues, the two brands can respond
rapidly with customised solutions. This provides a strong competitive
advantage in attracting key pro athletes. Reebok Hockey is currently
endorsed by NHL players such as Sidney Crosby, Pavel Datsyuk,
Patrice Bergeron, Dion Phaneuf, Matt Duchene, Roberto Luongo and
Marc-Andre Fleury. CCM’s roster of player endorsees includes Joe
Thornton, Vincent Lecavalier, John Tavares, Marián Hossa and the
revelations of the 2011-2012 season Ryan Nugent-Hopkins, Gabriel
Landeskog and Sean Couturier.
Key strategic categories to drive growth
Reebok-CCM Hockey intends to accomplish growth through a
continuous stream of product launches in its key category priorities:
skates, sticks, protective & helmets and licensed apparel.
14 Reebok Hockey
A.i 9 Sticks
– Skates: The focus in the skate category is to drive market share
increases through products addressing critical aspects such as fit,
weight and durability. An example of this is the U+ platform which
features the CCM U+ Crazy Light skate, the brand’s most thermo-
formable and customisable skate to date. In addition, in September
2011, a new line of Reebok Hockey skates, led by the 20K Pump, was
successfully presented to retailers. It features an advanced fit element
and is designed with a focus on lightweight and durable materials. The
full line will be delivered to markets in spring 2012.
– Sticks: To drive future growth in the sticks category, Reebok-
CCM Hockey focuses on developing new technologies that incor-
porate enhanced power, feel, flexibility and weight. Launched in the
fourth quarter of 2011, Reebok Hockey’s A.i sticks feature the new
2:1 Power Taper ratio for maximum power transfer and Xlerated
Blade technology for better reaction time with the puck PICTURE 14 . In
2011, CCM launched its new CCM U+ Crazy Light stick, the lightest
perform ance stick in the marketplace, along with the launch of the
U+ Crazy Strong stick, a high-performance stick engineered to offer
greater durability.
– Protective: In summer 2011, the 11K helmet was launched,
featuring the 5-Point Safety System. This product is the first in a series
of products to enhance players’ safety and was developed in collabor-
ation with universities and medical experts. In September 2011, CCM
presented to retailers the lightest protective equipment, the U+ Crazy
Light, which will be delivered in spring 2012.
– Licensed apparel: Reebok-CCM Hockey will strive to further
leverage its league partnerships and exclusive uniform status to drive
growth. In addition to official uniforms, Reebok-CCM Hockey will take
advantage of its status as the official NHL locker room performance
apparel supplier, and its exclusive rights related to the NHL Players’
Association (NHLPA) for name and numbered apparel and headwear.
Reebok-CCM Hockey is also developing its capacity to perform in a
reactive market and maximise sales potential linked to special events
such as the Stanley Cup Final, All-Star Game and Winter Classic.
Increase profitability through supply chain efficiencies
Another strategic priority for Reebok-CCM Hockey is to continue to
pursue a movement away from own manufacturing to sourcing goods.
In 2011, for example, the transfer of helmet production from North
America to China was finalised, and the transfer of high-end skates
production from Canada to Thailand in 2012 was also announced.
Manufacturing activities will be maintained mainly to develop and
manufacture performance products for pro level athletes.
Pricing strategy mirrors product positioning
Reebok-CCM Hockey’s pricing strategy is consistent with its high-
performance positioning in the sport. Through a commitment to
product innovation, Reebok-CCM Hockey’s pricing strategy is to
dominate the market in the premium price segments and to be a
strong competitor within the mid-price segment of the market.