Warc, 5 August 2014
FRANKFURT: Adidas is overhauling its global brand structure
and plans to spend more than €2bn on marketing, especially in developed markets
such as North America and Europe, the German sports accessories firm has
announced.
It said the new brand structure, which came into effect on
Friday, will involve having one brand marketing team in each category to drive
faster decision-making and more effective consumer-focused strategies,
Marketing Week reported.
Meanwhile, a vertical team led by executive board member
Eric Liedtke will continue to look after long-term strategy for each category
while developing the corporate brand.
The recently announced sponsorship deals with two football
clubs, Manchester United and Juventus, were the first stages of its plan to
increase marketing spend, the company indicated.
And it also represents its first significant increase in
marketing spend since its sponsorship of the 2010 FIFA World Cup in South
Africa.
The announcement came as Adidas reported that it has lowered
its full-year net profit target to about €650m ($870m) from between €830m and
€930m.
By way of explanation, it cited declining sales for its
TaylorMade-adidas Golf brand combined with lower consumer spending in Russia
and the worsening political situation in the country.
Adidas operates 1,000 stores in Russia, but now plans to
close some of them and to scale back its plans for new outlets.
"Everything we announced [today] has one objective: to
strengthen our brands, to drive consumer desire, and to set our group up for
long-term success," chief executive Herbert Hainer said in a statement.
Data sourced from Adidas, Marketing Week; additional content
by Warc
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