Adidas 2001 Annual Report Download - page 28

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23
Brand Strategies
Utilizing Synergies between TaylorMade and adidas Golf
In 2001, all adidas Golf product development and
marketing direction was transferred to Carlsbad,
California, the global center of the golfing industry.
By putting the product direction and marketing
message creation under the leadership that also
heads TaylorMade, the adidas Golf brand will con-
tinue to make rapid advances as an authentic, per-
formance-driven golf footwear and apparel brand.
Maxfli
Growing in the Golf Ball Market
In 1999, TaylorMade-adidas Golf introduced a line
of golf balls under the TaylorMade brand name. This
innovative product line received modest success in its
initial two years on the market but was limited in its
ability to expand market share due to the dominance
of the golf ball segment by a small number of estab-
lished brands. To make its offering more competitive,
TaylorMade-adidas Golf took over distribution and
licensing rights for the Maxfli and Slazenger golf
brands. Dunlop Slazenger, in turn, agreed to purchase
TaylorMade’s golf ball production facility and took
over manufacturing and supply responsibilities for
the Maxfli, Slazenger and TaylorMade balls. This deal
puts TaylorMade-adidas Golf in a leading position in
the golf ball category and allows them to realize cost
savings by utilizing Dunlop Slazenger’s manufactur-
ing economies of scale.
The Future of Maxfli
In addition, adidas-Salomon has acquired a 15-
month option to purchase the Maxfli brand and to
acquire a perpetual license for Slazenger Golf prod-
ucts should the partnership be deemed appropriate.
In 2002, Maxfli sales will be incorporated into
TaylorMade-adidas Golf and an evaluation during
this period of potential brand synergies will deter-
mine whether or not the option will be exercised.
Slazenger Golf
An Established Golf Apparel Brand
Slazenger is one of the oldest and most established
names in sporting goods. The brand, which is owned
by the Dunlop Slazenger Group, enjoys a rich heritage
in racquet sports as well as in golf. TaylorMade-adidas
Golf has been granted the distribution and license
rights to the Slazenger name in the golf market.
The brand has a small but loyal following in the golf
ball market and holds a very strong position in the
US golf apparel market with on-course, or “green-
grass” retailers. The Slazenger apparel line in the
United States has a reputation of traditional styling
and high quality that is highly complementary to
the quality, comfort and innovative styling of adidas
Golf. TaylorMade-adidas Golf intends to continue
to focus the Slazenger brand on this established
on-course golf distribution and to maintain the
classic styling that has made the brand successful.
TaylorMade Golf Clubs/
adidas Golf Footwear
US Open Champion Retief Goosen