Reebok 2015 Annual Report Download - page 75

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GROUP MANAGEMENT REPORT – OUR GROUP
Group Strategy – TaylorMade-adidas Golf Strategy
Pricing and trade terms
•As the market leader in metalwoods, TaylorMade-adidas Golf will put a high emphasis on maximising
list prices for future product launches, while at the same time extending product life cycles.
•
Management will further optimise trade terms with its retail partners through a focus on full-price sell-
through. Promotions will be very closely linked to the individual customer performance.
Product cost and supply chain
•
TaylorMade-adidas Golf aims to reduce supply chain and product expenses, primarily by improving
operating efficiency and productivity in assembly as well as by reducing spend on inbound air freight.
•In addition, Management aims to further reduce the overall article complexity by focusing on products
that are resonating well with their target consumer and that deliver upon TaylorMade-adidas Golf’s
ambition to lead innovation in the golf industry.
Marketing activities
•In light of Management’s efforts to shift to longer product launch cycles, TaylorMade-adidas Golf will
further reduce the number of new product introductions, thus limiting the overall marketing activities.
•
Furthermore, TaylorMade-adidas Golf will re-prioritise its global marketing spend by significantly
reducing investments in non-priority markets.
Operating overhead costs
•TaylorMade-adidas Golf aims to generate substantial operating overhead savings. In order to create a
leaner, faster and more efficient organisation, during the course of 2015, TaylorMade-adidas Golf moved
to a lead-market strategy. With a focus on the biggest golf markets – USA, Japan, South Korea and the
UK – the company was able to restructure and significantly reduce its global workforce.
•
Further initiatives aimed at reducing the cost base are the consolidation of warehouses around the globe,
the optimisation of shipping policies with retail partners as well as the creation of shared service centres.
In addition to the restructuring programme, the adidas Group has engaged with an investment bank for
the purpose of analysing future options for the company’s golf business, in particular the Adams and
Ashworth brands. This strategic review of the company’s golf business is expected to be concluded by the
end of the first quarter of 2016.
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