Global Brands Strategy
Global Brands is responsible for all the product and marketing functions and long-term development 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 ofadidas 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 customers’ and consumers’ perception. Global Brands played a central role in the creation of Route 2015, the adidas Group’s five-year strategic business plan that was unveiled in 2010. The adidas and Reebok brands are expected to deliver 90% of the targeted growth for the Group in this period.
Areas within adidas and Reebok that were identified as key contribu- tors and game changers for the adidas Group include:
– Gaining sales and market share in the key global categories running and basketball with adidas Sport Performance
– Expanding adidas Sport Style into fast fashion with the adidas NEO label
– Establishing Reebok as the leading fitness brand
– Leading the industry in the fields of customisation and interactivity across categories
In addition, Global Brands is also playing a key role in our Driving Route 2015 programme, which is focused 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 a “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 deliver long-term success. 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 .
To be successful across consumer segments, we acknowledge that a strategy of mass production or mass marketing is no longer suffi- cient. 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:
– 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, relating to fun, socialising and quality of life.
– 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.
– Celebrating individuality:
Consumers increasingly fulfil their desire to differentiate 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.
– Together is better:
There is an increasing need for meaningful social interaction, both online and offline, as consumers become more mobile, and the rise of digital technologies makes it easier for them to connect with like-minded people.
– Back to basics:
For everyday life, products and services are desired to be simple and authentic, making consumers’ lives easier, rather than more complicated. There is a growing interest in outdoor activ- ities, reflecting the desire to reconnect and be in tune with nature.
To match these trends and fulfil consumer demands, Global Brands teams adhere to the following principles:
– Create the unexpected in terms of product and brand experience
– Create the highest emotional connection between our brands andthe consumer
– Be prepared for the next generation, anticipating change
– Simplify to the maximum
– Show excellence in execution, being consistent in whatever we do, from idea creation to communication at the point of sale, and in the digital world
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Created by : Lisa Maritseda (group3)