1. 16/03/2011 1

2. Diagnostic | Strategy | Actions
Strategy
• Internal Analysis • Actions
• External analysis • Synthesis
• SWOT • Target • KPI
• Positioning
• Objectives
Diagnostic Actions
16/03/2011 2

3. Diagnostic | Strategy | Actions
QUIKSILVER
Quiksilver Europe (Na Pali SAS) is a multi brand company based in Saint Jean de Luz, France
 Brands : Quiksilver, Roxy, DC shoes, Lib Tech
 Geography area : Europe, EMEA
 Products : Casual clothes, accessories & technical
products (wetsuits, ski suits)
 Distribution : Core market shops, sport specialized
shops, retail shops and e-commerce site
 Specificity : the group manages its own strategy and
its own lines of products independently from the US
headquarters (Quiksilver inc.)
16/03/2011 3

4. Diagnostic | Strategy | Actions
CURRENT SITUATION
Quiksilver remains leader on the action sports market despite difficulties for the last few years
 A drop of sales in the last 4 years
 A Cannibalization of DC shoes
SALES (M€) TURNOVER (M€)
400 400
300 - 24% 300 - 23%
200 200
100 100
0 0
2008 2008
2009 2009
2010 2010
2011 2011
16/03/2011 4

5. Diagnostic | Strategy | Actions
MARKETS BRAND IDENTIY BRAND IMAGE BRAND NOTORIETY BRAND KEY VALUES
BRAND AWARENESS
 Innovation  Quality product  The biggest and  Authenticity
 Quality product  Innovation product most respected
OUTDOOR  Respect  Attractive & Shared action sports brand  Wildness
ACTION SPORT  Unique way of life values  Worldwide
 Dynamic  Good-looking notoriety  Freedom
 « Young » spirit clothes  Leader in action
 Passion  Technical product sports market  Youth
 Performance
 Respect
 Low quality product  Bad notoriety
 Non fashionable  Difficulties to
 Passion
STREET WEAR clothes attract customers on
FASHION  Too young clothes the streetwear
 Quiksilver is
 Sport image market
willing to promote a
certain way of life
16/03/2011 5

6. Diagnostic | Strategy | Actions
ACTIONSPORTS MARKET OUTDOOR MARKET STREETWEAR MARKET
 39.5 billion € worldwide in 2010 Sport activities practiced outside  ≈ 8 billion € in France
 18% of the world sport market  14,3 billion € in Europe in 2009  24 billion € with just England
 10.7 billion € in Europe in 2010 (-1% / 2008) and Germany, France
(+1% / 2009)  Stagnant market  Demand for good value fast –
 Stagnant market  Fragmented & competitive fashion has supported the
 Fragmented & competitive market market despite the emergence of market during the crisis and
multi brand companies should push its future growth*
 Future big markets : eastern
Quiksilver
7% 5%
Europe **
Roxy
8%
24% Billabong
* ** source Xerfi 2010
9% Burton Quiksilver
15%
O'Neil
10% 12%
Rip Curl
10%
Vans 1,9
HOW ? As major retailers’ growth is limited by the maturity of their domestic markets, strategies will include
conquering independent stores’ market shares. For instance, brand building (acquiring or creating new brands)
could enable large retailers to increase their market share and scope - Xerfi 2010
16/03/2011 6

7. Diagnostic | Strategy | Actions
STRENGTHS WEAKNESSES
 Multi brand company (DC, Roxy, Quiksilver) BUSINESS
IMAGE  Decrease of the turnover (-11% in 2010-2011)
 Value, culture & lifestyle  Loss of core clients (surfers, …)
 Communication strategy : endorsement, events, etc.  Drop of the sales for 4 years
 Good brand image on the action sports market  Cannibalization of DC shoes (+7% en 2011)
PRODUCT  Difficulties on the street wear market to attract new customers
 Leader on the action sport market  Loss of market shares
 Technical products : high quality, growth of sales & innovation
 Distribution network
OPPORTUNITIES THREATS
STREETWEAR MARKET ACTION SPORTS
 Biggest market apparel  Stagnant and saturated market
 Doesn’t suffering so much from the crisis, especially for most fashion brands  New aggressive incoming companies on the action sports market (Nike, Adidas)
 Eastern Europe : dynamic markets (forecasts)  Fierce competitions
OUTDOOR / ACTION SPORTS OUTDOOR
 Increasing interest for the leisure and the outdoor sports  Stagnant and saturated market
 Increasing interest for good health  Supremacy of Nike and Adidas
 Increasing interest for environment & natural values STREETWEAR MARKET
 Constant incremental innovation  Dominated by giants such as Nike, Adidas, etc.
 Competitive market
GLOBAL
 Economic crisis and growth of cotton price
QS is the leader of the action sports market and one of the main actors on the outdoor market. However, face to competitive and limited
markets and decreasing sales of casual clothes, the company has to focus on new markets.
Streetwear market represents a strong opportunity to attract new clients especially in areas where outdoor & action sports are not really
developed (cities, some countries)
16/03/2011 7

8. Diagnostic | Strategy | Actions
CATEGORY CHARACTERISTIC BEHAVIOR
- Young (12 – 20 years old) - Addiction to trends & fashion  Apparent brands
- Urban - Undergo fashion
Brand Addict - SPC + - Street culture / Hip Hop / Skate
- High frequency of renewal
- 20 – 35 years old - Urban fashion / BCBG
LifeStyle
- Urban - Fashion attractiveness  Discreet
- SPC + - More independent in dressing up
- Proactive : to bargain-hunt / to find last trends
- Middle frequency of renewal
- 30 – 45 years old - Stylish to confirm social status
Ageing Romeo
- Urban - Low frequency of renewal
- SPC +
- 15 – 40 years old - No specific attraction for brands
- Spread - Necessity to dress up
Casual - SPC -
16/03/2011 8

9. Diagnostic | Strategy | Actions
BUSINESS IMAGE
TARGET Interest Accessibility Interest Accessibility
- Market dominated by - Averagely adapted - Target = Base of our image - Good knowledge
major groups products on action sports - Control of communication
- High frequency of buying - Average legitimacy with - Too isolated young image ways
Brand addict distributors  no trend setters
- Weak market shares
compared to competitors
- Market : Important & - Insufficient & Inadequate - Trend setters - No legitimacy
Dynamic offer - Valuable for brand - Incoherence with actual
Lifestyle - High purchase power - Uncontrolled distribution - Influence brand addicts target
- Important frequency of network
buying - No legitimacy
Ageing
- Important purchase - Presence even if weak - No Trend setters - Low coherence with
power position actual target
Romeo
- Low renewal - Experience
- Low frequency of buying - No existence in - Depreciation to actual - High incoherence with
- SPC – distribution network target actual target
Casual - High market size - Unadequate position
- Unadapted marketing mix
16/03/2011 9

10. High Prices Diagnostic | Strategy | Actions
LifeStyl
e
Brand
Ageing
Addict Romeo
Sport Fashion
Casual
Low Prices
16/03/2011 10

11. Diagnostic | Strategy | Actions
High Prices
Fashion
Low Prices
16/03/2011 11

12. Diagnostic | Strategy | Actions
« QSV by Quiksilver » is the streetwear collection which brings
the trendiest & environmentally friendly products to
LifeStyle
Quantitative Qualitative
 Market Shares : Objective 3 years = 1,5%  To increase Quiksilver global Brand Image
 Awareness : Objective 3 years = 30% (source survey Psyma within 18-30 years old in 2015)
(3 pts source survey Psyma within 18-30 years old in 2015)
16/03/2011 12

13. Diagnostic | Strategy | Actions
16/03/2011 13

14. Diagnostic | Strategy | Actions
PRODUCT
We launch a new Brand – Name : QSV
style, logo , image
o Characteristics of the collection
 Sobriety : colors and logo less visible than in Quiksilver actual products
 Trendy / Fashion : a style close to our new target
 Environmentally friendly : we will adopt a new trend in the textile market
and use this value of the Quiksilver Group
o The new brand products will include around 25-30 pieces
 Shirts, T-shirts, Pants, Shoes, Jackets
16/03/2011 14

15. Diagnostic | Strategy | Actions
DISTRIBUTION NETWORK
Independent Quiksilver Well-known
Big Stores Online
shops flagships Reps
• Citadium, • Specialized in • Corners in • Specialized in • Hire
• Urban streetwear and specific QS street wear representatives
Outfitters fashion shops and fashion in the fashion
• Creation of and street
• Galleries
website wear market
Lafayette
• Creation of
showrooms in
main cities
↗ legitimacy and
New strategy & new target  Change our distribution network place of products
16/03/2011 15

16. Diagnostic | Strategy | Actions
COMMUNICATION - ABOVE AND BELOW THE
LINE
EVENTS PR MEDIA
 Launching events : defile +  Magazines specialized in  Ads in magazines specialized in
public party with concerts fashion, culture, music culture, fashion and music : GQ,
WAD
 Organization of a tour in the  Influent fashion blogs
main influent European cities in WEB 2.0
terms of fashion (London, Paris, TRADE MARKETING  Dedicated website for QSV
Berlin, etc.) Creation of corners linked to the
new universe of the collection  Web banners on influent blogs
SPONSORING with art work and music of our and websites
 Trend setters : underground sponsored artists
artists, bands, etc.
16/03/2011 16

17. Diagnostic | Strategy | Actions
BUDGET : 4 MILLIONS €
15% Below the line marketing
event, PR, sponsoring, web
20% Trade marketing
55%
Web
10%
Media
Prominence of BELOW THE LINE
Best ways to develop our brand and its world / universe
16/03/2011 17

18. Diagnostic | Strategy | Actions
Need to
PRICING New in this
segment :
increase the
Brand value
key prices
& Sales
Identification
Personal
of the need
values &
for the
Needs
product
Purchasing
Experience /
Emotions
16/03/2011 18

19. Diagnostic | Strategy | Actions
16/03/2011 19

20. Diagnostic | Strategy | Actions
16/03/2011 20

21. Diagnostic | Strategy | Actions
KEY POINTS OF OUR MARKETING MIX
PRODUCT PRICE COMMUNICATION DISTRIBUTION
Fashion Aligning Independent
PR
Eco-Friendly strategy shops
ONE AIM : REACH LIFESTYLE TARGET
16/03/2011 21

22. Diagnostic | Strategy | Actions
KPI’S OF 2 OF OUR MAIN ACTIONS ABOUT OUR MIX
MARKETING MIX ACTION INDICATOR PROGRESS 1ST YEAR 2ND YEAR 3RD YEAR
3.500.000 unique 5.600.000 unique 7.000.000 unique
Planned
Number of clicks visitors visitors visitors
Communication Web 2.0
on our website
Real
Planned 700 shops 1050 shops 1750 shops
Number of
Distribution Referencing
retailers (shops)
Real
To help us managing our Marketing Plan
16/03/2011 22

23. 16/03/2011 23