Reebok 2015 Annual Report Download - page 109

GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Internal Group Management System
105
3
Market share and Net Promoter Score (NPS): Maintaining and enhancing brand image and reputation
through the creation of strong brand identities is crucial for sustaining and driving revenue and profit growth.
It is also an important credential as we extend our brands into new categories and regions. Therefore, mainly
on a market and category level, we invest in primary qualitative and quantitative research such as trend
scouting, consumer surveys and market share data to determine brand and category strength. Measures
that are regularly tracked include market shares, brand awareness, likeability and purchase intent. In
addition, within the framework of ‘Creating the New’, we implemented a Net Promoter Score (NPS) which
strengthens our capabilities to more carefully review brand perception. These efforts are driven by our
global market research and consumer insight teams and monitored on a regular basis. The results are also
reflected in the variable compensation for Executive Board members and the majority of our employees.
Backlogs and sell-through data: To manage demand planning and anticipate our future performance,
backlogs comprising orders received up to nine months in advance of the actual sale are monitored
closely. However, due to the growing share of own retail in our business mix as well as fluctuating order
patterns among our customers, order books at the Group level are less indicative of anticipated revenues
for the adidas Group compared to the past. Therefore, qualitative feedback from our retail partners on the
sell-through success of our collections at the point of sale as well as data received from our own-retail
activities is becoming increasingly important.
On-Time In-Full (OTIF): OTIF measures the adidas Group’s delivery performance towards customers and
our own-retail stores. Managed by our Global Operations function, OTIF assesses to what degree customers
received what they ordered and if they received it on time. It helps our Group to investigate improvement
potential in the area of order book management and logistics processes. It therefore also helps us to
improve our delivery performance, which is a major aspect when it comes to customer satisfaction. The
OTIF assessment covers both the adidas and Reebok brands in most of our key markets.
Employee engagement: To measure the level of engagement and motivation of our employees, the adidas
Group carries out employee engagement surveys. These surveys aim to provide key insights into how well
as an employer we are doing in engaging our employees. They thus enable us to develop the right focus
and future people strategies across our organisation. Against the background of organisational changes
within the Group, the existing engagement survey approach is currently being re-designed with regard to
the survey’s scope and frequency. The new survey approach is planned for 2017.
Sustainability performance: We have a strong commitment to enhance the social and environmental
performance of our Group. By doing so, we firmly believe we will not only improve the Group’s overall
reputation, but also increase our economic value. We have therefore implemented a comprehensive
sustainability programme under which we regularly review our performance. We closely monitor our
sustainability targets and have set ourselves clear milestones. A major focus lies on monitoring and
rating our factories with regard to compliance with our Workplace Standards and rating the effectiveness
of compliance systems. A rating tool helps us evaluate six fundamental elements of social compliance.
We have a strong track record in sustainability reporting, with our Sustainability Progress Report being
an integral part of this. All our social and environmental publications, which include more details and
additional data, are provided on our corporate website.
see Management Assessment
of Performance, Risks and
Opportunities, and Outlook,
p. 148
see Glossary, p. 260
see Global Operations, p. 74
see Our People, p. 87
see Sustainability, p. 94
see Sustainability, p. 94
www.adidas-group.com/en/
sustainability/reporting-
policies-and-data/
sustainability-reports