Reebok 2012 Annual Report Download - page 100

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adidas Group
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2012 Annual Report
Group Management Report – Our Group
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2012
Global Brands Strategy
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02.3
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Global Brands Strategy
Global Brands is responsible for brand positioning, brand strategy, product creation, innovation and
all the product and brand marketing functions of the adidas and Reebok brands. The primary objective
of this portfolio strategy is to ensure that our brands seize market and category opportunities through
well-defined and coordinated go-to-market strategies. Each brand is responsible for the execution of
its strategic focus by creating a constant stream of innovative and inspiring products and generating
communication strategies that represent each brand and category in an engaging and compelling way.
Driving the long-term development of adidas and Reebok
To secure long-term sustainable growth for the Group, Global Brands is
focused on driving the development of the adidas and Reebok brands.
The overall strategic goal is to achieve qualitative, sustainable growth
by building desirable brands in consumers’ perception. Global Brands
played a central role in the creation of Route 2015, the adidas Group’s
strategic business plan that was unveiled in 2010. The adidas and
Reebok brands are expected to deliver more than 80% of the targeted
growth for the Group until 2015.
Areas within adidas and Reebok that were identified as key contributors
and game changers for the adidas Group include:
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Gaining sales and market share in the key global categories running
and basketball with adidas Sport Performance.
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Expanding adidas Sport Style into fast fashion with the adidas NEO
label.
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Maintaining adidas Originals’ strong momentum with the fashion-
driven lifestyle consumer.
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Establishing Reebok as the leading fitness brand.
Global Brands also plays a key role in bringing the efficiency initiatives
of Route 2015 to life, by focusing on speed, consistency and consumer
focus. Among other things, we are striving to present adidas and Reebok
in a more consistent way around the world in terms of ranges and
pricing. In the long term, this should lead to range size efficiencies and
gross margin optimisation. One example of this is the creation of the
adidas “Global Foundation Range”, which will be mandatory for all of our
markets and channels.
Focus on the consumer
The consumer is at the heart of everything we do. This is the first and
most important realisation, and we must adhere to it to ensure the
long-term success of our brands. As part of its function, Global Brands
has mapped out our target consumer universe, which spans from our
roots in sport, the “pure performer”, through to today’s style setters
who have embraced sporting goods brands as part of their lifestyle
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DIAGRAM 01.
To be successful across consumer segments, we acknowledge that a
strategy of mass production or mass marketing is no longer sufficient.
Only by identifying and understanding consumers’ buying habits, their
fitness level, their motivations and goals for doing sport and their
individual lifestyle can we create meaningful products, services and
experiences that build a lasting impression. In this respect, we have
identified five key global trends which will be important to address with
our brands and sub-brands over the duration of Route 2015:
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Fit for life: Sport is no longer just about competing and winning.
Sport is becoming more embedded in consumers’ everyday lifestyles.
Motivations and goals are becoming more holistic, fun, socialising and
life-enhancing.
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You are what you know and what you do: Society is embracing a
life-long learning attitude, and placing more emphasis on what we know
and do versus what we have and where we come from.
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Celebrating individuality: Consumers increasingly fulfil their desire
to differentiate themselves from one another by being more creative – on
the one hand mixing and matching products and services they need, and
on the other hand seeking personalised offerings tailored for them. The
growth in social media continues to fuel more and more opportunities to
display individuality, making it even more important.
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Together is better: There is an increasing need for meaningful social
interaction, both online and offline, as consumers become more mobile,
and digital technologies and social networks make it easier for them to
connect with like-minded people.
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Back to basics: For everyday life, products and services are desired
to be simple and authentic, making consumers’ lives easier. There is
a growing interest in outdoor activities and minimalistically designed
products, reflecting the desire to reconnect and be in tune with nature.