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Marketing Plan: New Company, New Product

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Marketing Plan: New Company, New Product

  1. 1. New Product Development& Marketing plan:“Columbia” SnowboardsCorporate Development and Strategies: Alexey TsukanovProduct Development & Research: Fabricio SchnorembergerProduct Augmentation and Communication: Aygun Suleymanova
  2. 2. Company History: Founded 1937 by Paul and Marie Lamfrom in Portland, Oregon. Began as a small hat distributor but quickly expanded into outerwear, sportswear, footwear, accessories, and equipment. Columbia Sportswear CommercialMission Statement: “Columbia Sportswear outfits outdoor enthusiasts with unmatched performance and advanced technology from head to toe with outerwear, sportswear, footwear, and accessories” Key competitors: The North Face, Patagonia, TimberlandIndustry Background Apparel Manufacturing Industry, (subsector Outerwear Manufacturing) $7.2 Billion, 6% growth - 2006 2007 2006 2005 2004 2003Net Sales $1,356,039 $1,287,672 $1,555,791 $1,095,307 $951,786Net Income $144,452 $123,018 $130,736 $138,624 $120,121
  3. 3.  Our recommendation is to expand into sports equipment industry by offering a full line of snowboards and snowboard equipment. This strategy fits with Columbia’s mission statement of offering high quality “head to toe” products for outdoor enthusiasts. Sports Equipment Industry Five Force Analysis Threat of Entry: Low. High Brand Awareness, economies of scale. Industry Supplier Power: Low. Rivalry: Medium. Buyer Power: Low. Raw materials (wood) Products are interchangeable products sold through many are plentiful, no threat Numerous established smaller retailers with of forward integration. competitors limited bargaining power. Substitutes: Medium. Other extreme sports such as mountain biking, climbing, etc
  4. 4. - Sports Equipment is a $25 billionindustry. Snowboardingsubcategory of the SportsEquipment Industry is a $500million industry. Cost Leadership Differentiation- Very high growth rate. AtomicCustomer base has increased Broad Empire *Columbia* Burtonfrom 2.5 million in mid 90’s to Marketover 5 million today. Narrow Market Mash- More than half of the marketshare is owned by BurtonsSnowboards.-Opportunity exists for a highquality snowboards offered to abroad market
  5. 5. Strengths: Weaknesses:- Strong brand-name that is - Slowdown in revenue growthsynonymous with quality and due to increased costs anddurability increased competition- Healthy financials - International expansion has- Innovative marketing not been very successful-Reputation as an eco-friendlycompanyOpportunities: Threats:-Very fast growing industry -Economic slowdown may- Strong demand for high negatively affect demandquality, durable products - Unpredictable seasonality and- Emerging markets show good warmer winters may reducefuture potential demand - Burton Snowboards is a very strong competitor
  6. 6. - Columbia’s strategicgrowth entailsexpanding productoffering for everyoutdoor segment- Our recommendationis to acquire a premiumsnowboardmanufacturer andmarket their productsunder Columbia brand
  7. 7.  Segment: regular snowboarders-practitioners Size: 7.1 million Growth rate: 30% Access to segment: accessible Geographic concentration: US and Europe Emotional motives: high Company fit & ease of business Other business opportunities provided by the segment: immersion in extreme-sports!
  8. 8. Demographics most snowboarders are 12-to-24-year-olds females make up roughly 25 percentGeographic targeting: US (38 states)Social/cultural influences inspired by surfing and skateboarding came to rebel the more sophisticated way of skiing Snowboarders stereotypes: "lazy", "grungy", "punk", "stoners", "troublemakers"Purchasing behavior: high appealing durable good less frequent purchases greater consumer investment more intensive personal selling
  9. 9.  Columbia conveys functionality, durability and high quality associated with active, healthy lifestyle brand extension opportunity: positive consumer expectations, retailer support, leverage current brand awareness, and reduced cost of the launch campaign Create the perception of high value-added product Association with Columbia’s points-of-parity
  10. 10.  Achieve market share large enough to consolidate the new product line as a strong competitor in the market. Create an association of snowboarding equipments and Columbia’s name inside the target audience’s minds. Making Columbia’s snowboards available and reachable for any American customer. Convey a high-quality message about the new product line to the target audience. Achieve 5% of market share in revenue measure ($24.4M annual sales) in the second year. Sponsor 2 of the 5 best snowboarding professionals in the United States at the end of 1 year. Sponsor at least 2 major US snowboarding competitions at the end of 1 year. Having snowboards available in all states where snowboarding resorts are popular at the end of 1 year. Reach superior product performance indicators than any industry competitor in 1 year
  11. 11. a board that slides on snow shape with front and back upturned high speed and agility; noscratches, and graphics printed on both sides. 3-years warranty; free engraving; option to customize boards made of lighter materials, such as titanium, aluminum, or carbon fiber.
  12. 12. Performance high performance levels constantly assessed: indoor, in a science lab; and outdoor, a team of pros and amateurs will take the boards to the slopes and subject them to different riding styles and terrains Price-value-quality relationship  both amateurs and professionals  it is imperative to deliver a high value-added product  practice of higher prices than the average of competition
  13. 13.  Brand name Logo design Warranty Package trade dress Customer Relationship Building programs Customer Service requirements Trade-in; Financing On-line community building plan Other augmentation › Engraving › Customization
  14. 14.  Price-quality-value relationship Buyer’s perception Influences on price Pricing Policy Pricing objective Recommended list price - $479 - $499 Price adaptation
  15. 15.  Distribution requirements demanded by the target market Distribution intensity policy Channel path selection Supply-chain partners’ selection Channel diplomacy Reseller program
  16. 16.  Target audience profile: Channels to be used › On-line; › Colleges; › Snow resort regions Geographic coverage Frequency Key Messages:

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