End to End Marketing as a Strategic Accelerator · End to End Marketing as a Strategic Accelerator...

End to End Marketing as a Strategic Accelerator

Victor Duran – AMER SPORTS SVP Marketing & Direct to Consumer

What we will do today

• Where were we in 2009

• Company and marketing strategy to turnaround results

• Key learnings

Amer Sports CMD 20152

What I say it looked like


What it really looked like

Amer Sports in brief

• Net sales 2,228.7 (2014)

• Personnel 7,630

• One of the leading sporting

goods and outdoor companies

in the world

• Strong brand portfolio

• Positioned to benefit from long

term trends

18%

17%

15%14%

13%

11%

6%

6%Net Sales by business

(2014) Footwear

Winter SportsEquipmentApparel

Fitness

Individual BallSportsTeam Sports

Cycling

SportsInstruments

23 September 2015 Amer Sports Company Presentation4

Situation in 2010 was challenging

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10.0 %

1,200m

1,400m

1,600m

1,800m

2,000m

2,200m

2,400m

2,600m

2,800m

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Net Sales EBIT Margin

Net Sales (EUR) EBIT Margin

*Vara consensus

• Business down 4

years in a row

• Product focused

• Lack of growth

building blocks

• Brands very narrow



Amer Sports’ five strategic priorities

1. Clear portfolio roles and synergies, integrated company

2. Faster growth in softgoods

3. Winning with consumers

4. Winning in Go to Market

5. Operational excellence

The company focused on 5 areas –Marketing is integrated into each

6

Marketing a key

factor in each

Key Marketing Strategies and building blocks

• Refined the positioning of all of its brands to win with the Core

and More, broadening consumer relevance and enabling

significant revenue growth

• Created a €170M (6% of Sales) Ecommerce & Retail business

which supported Softgoods and created “profit driving”

advertising for the base business

• Significantly increased (4x) Digital consumer engagement

globally

• Built a global, multi-brand organization and platform to

execute this.


Results are good and we are well poised for the future

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10.0 %

1,200m

1,400m

1,600m

1,800m

2,000m

2,200m

2,400m

2,600m

2,800m

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Net Sales EBIT Margin

Net Sales (EUR) EBIT Margin

*Vara consensus


Mountain Sports

Progression

We Create Progressive Gear

To Enable Freedom and Help You

Challenge Yourself In the Mountains

Primary: Adventurer

Create to core: Hybrids

Commercial: All Mountain Sport Enthusiasts

Values: Authenticity, Passion, Innovation, Commitment

Personality: Inspiring, Free-spirited, Craftsmanship, Forward thinking, Performing

BRAND EQUITY

PYRAMID

Progressive, Intuitive, Crafted, Fit, Performance Led Design, Hybrid, Premium

Quality, Reliability, ValueProduct

PoP

Product

PoD

Brand

Character

Target

Consumer

Brand

Preference

Statement

Core

Brand

Essence

Salomon: Nearly 2x growing in and from the core


Wilson & Mavic: Adding more


What is the origin of the Arc’teryxbrand name?


ARCHEOPTERYX LITHOGRAPHICA

One hundred and forty million years ago a creature struggled to

escape the hostile horizontal world.

It became lean and strong and developed into a magnificent climber.

Then, driven by success and the years of evolution,

it developed the feather.

Downclimbing had become a thing of the past.

EVOLUTION IN ACTION

2. Created a significant Retail and Ecommerce business

Major step change in our direct to consumer presence to drive engagement and profit

2009

• Salomon retail, primarily partner

stores and Factory Outlets

• No other brands

• No ecommerce

• Salomon and Arc’teryx retail, full

mix, global. Limited Suunto and

Wilson retail.

• Ecommerce: all brands, most

countries


Central: 30

South: 10North Am:

24

N° stores EMEA :

79Russia : 14North: 7

N° stores Americas:

63

Korea: 74China: 39Japan: 28

Latin Am.:

39

N° stores APAC:

141

Amer Sports Retail network (end 2015):

280+ stores: 33 000 sqm of controlled distribution

Export: 18

Examples of Arc’teryx store expansion


LONDONPiccadilly

NYCSoho

SHANGHAIHong Kong Square

Example of Salomon store expansion


Moscow

Tokyo

Toronto

Arc’teryx: In full acceleration: 4x since 2009

Amer Sports CMD 201520 Amer Sports CMD 201520

We have built 70+ web shops over the past 5 years covering most of NA, Europe and Asia


0

2

4

6

8

10

12

14

16

18

20

Salomon Suunto Arc'teryx Wilson Atomic Mavic

# of Country Web Shops

2010 2015/16

While we are selling the range, we are also focusing on customization


Which has been the only ball used in every single pro football game and Super Bowl?


"The Duke", named in honor of

football legend Wellington ""Duke""

Mara, is the official game ball of the

NFL. Wilson has been the official

game ball of the NFL since 1941.


3. Developed a clear and meaningful Digital Strategy

What is good? Brands benchmarked

Traditional Sporting

Goods

Digital Services and

Wearables*

Nike Garmin

adidas FitBit

The North Face Strava

VF Corp. Runkeeper

Under Armour Endomondo

Columbia MyFitnessPal

Rossignol MapMyFitness

K2 Nike+

Scott Sports GarminConnect

Black Diamond Runtastic

• Web traffic: for every €1B in sales, 30MM in visits

• Social: for every €1B in sales, 5MM fans

• Consumer database (base assumption): 2% consumer capture rate from offline product sales; 10% consumer capture rate from e-com orders

Web site visits

(MM)

€ sales

(B)

0

20

40

60

80

100

120

0 0.5 1 1.5 2 2.5

Digital services and wearables

Amer SportsUnder Armour

The North Face

Columbia

Salomon

WilsonPreco

r

Suunt

o Arc’tery

xAtomic

Mavic

Movescount

Runkeeper

/

MapMyRid

e

Strava /

MapMyRun

Endomond

o

Runtastic

Nike+

FitBit

GarminConnect

MyFitnessPal

GLOBAL BRAND TRAFFIC (M) GLOBAL DATABASE (M)

Brand 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

Arc'teryx

Atomic

Wilson/DM

Mavic

Salomon

Suunto

AS Total 45 64 76 106 129 158 192 1 2 3.5 6 9 12 15

Traffic and Database targets quantified by brand and through 2020,

cascading down to country level

REACH

INSPIRE

EDUCATEENGAGE

SELL

RETENTION

- SEARCH OPTIM.

- ON ALL DEVICES

- INSP. CONTENTS

- MOBILE SERVICES

- PRODUCT EDUCATION

- MERCHANDISING

- SPORTS EDUCATION

-COMMUNITY MKG.

- ECOM CUST. SERVICE

- INCREASE REVIEWS

- INDIRECT

- DIRECT

- IN STORE KIOSKS

- INVITE

CONSUMER TO

COME BACK

CONSUMER

JOURNEY

EACH KEY PILLAR TRIGGERS DIFFERENT PROGRAMS –

Amer Sports Model with Salomon Example

2012 PROGRAMS

- FSTV: 5M VIEWS

- KILIAN QUEST: 1.5M VIEWS

- MOBILE: 80K SUBSCRIBERS

- 75% OF TRAFFIC COMING

FROM SEO

- MOBILE PRESENCE

LAUNCH IN Q4

- EDU. CONTENTS & VIDEOS

- CONV RATE FROM 0.5 TO

0.8%

- 10 M VISITS // YEAR

-250K FANS & FOLLOWERS

- ENGAGMENT: 16%

- CONV. RATE : 5%

-NPS SCORE: 9

-INDIRECT : 10 E-SIS

-DIRECT: 3M€ SALES- KIOSKS: 10% OF ADD. SALES

PER DOOR

-LAUNCH OF CROSS CHANNEL

LOYALTY CARD IN Q3

CONTENT REACH: +10% ON AWARENESS & CONSIDERATION

Salomon Running TV

4th season

YTD est. 3M views

Salomon Freeski TV

9th season

8th season est. 3M views

Season 9 teaser 0,5M in 2 weeks

What was Salomon’s first product?


Salomon saw blades - 1947


4. Built a global, multi-brand organization & platform

We added significant capability and capacity

1) Brand Marketing: new Marketing leaders and brand managers in

many brands and countries

2) Digital and Ecommerce: 50+ new people across the globe

3) Retail: Marketing, Operations, Development, Logistics capabilities

from leading companies (Nike, VF Corp, Luxottica, Levis)


Key Learnings

1) Deliver profit as you go – no hockey stick

2) Set an ambitious target and ensure you have a 3 year strategy

and business plan with clear targets and building blocks.

3) Staff a dedicated team, bring in the best from the outside and

blend with the best from existing team.


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