SUUNTO PROJECT “RAMPING UP SALES” June 2003 Vantaa, Finland IBD team: Marybeth Thomson Carlos...
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Transcript of SUUNTO PROJECT “RAMPING UP SALES” June 2003 Vantaa, Finland IBD team: Marybeth Thomson Carlos...
SUUNTO PROJECTSUUNTO PROJECT“RAMPING UP SALES”“RAMPING UP SALES”
June 2003Vantaa, Finland
IBD team:Marybeth ThomsonCarlos RamirezYoungsuk KoShin Hamanaka
TABLE OF CONTENTSTABLE OF CONTENTS
Introduction
Communication Strategy
Distribution Strategy
Marketing Infrastructure
Programs and Tactics
Future Considerations
Appendix
INTRODUCTIONINTRODUCTION
IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO REALIZES THE IMPORTANCE OF IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO REALIZES THE IMPORTANCE OF TRANSITIONING FROM A STRONG R&D COMPANY TO A GLOBAL DESIRED SPORT BRAND TRANSITIONING FROM A STRONG R&D COMPANY TO A GLOBAL DESIRED SPORT BRAND COMPANY . . . COMPANY . . .
THE MOST DESIRED SPORT BRANDTHE MOST DESIRED SPORT BRAND
Suunto Achievements • Top technology company• Extremely knowledgeable R&D
group• Professional and ambitious team
on board• Well establish brand name in the
diving category• Successful introduction of
products• Diversification into new markets
Goals and Challenges • Revenue growth expectations and
pressure as the future of Amer Group• Market development for “sport
instruments”• Brand awareness development with
limited marketing resources in Finland or abroad
• Balance between R&D and marketing skills to surpass the transition phase
Recent Progress• Already recognized as the leading
provider of diving instruments• Gaining meaningful traction
among outdoor sports enthusiasts• Planned completion of product
matrix for all new markets• All progress supported by the
launch of suuntosports.com and an improved customer service infrastructure
. . . AND TO SUCCESSFULLY FACILITATE THIS SHIFT, THE COMPANY MUST UNDERSTAND THE . . . AND TO SUCCESSFULLY FACILITATE THIS SHIFT, THE COMPANY MUST UNDERSTAND THE END CUSTOMER WHEN DEVELOPING MARKETING STRATEGIESEND CUSTOMER WHEN DEVELOPING MARKETING STRATEGIES
Consumer
Consumer needs as the driver
New Product Development
Distribution Decisions
Communication Strategies
Pricing Decisions
R&D
Customer Feedback
Distribution Feedback
Market Research & Analysis
Suunto’s Goals and Strategy
SPECIFICALLY, THE COMPANY SHOULD IMPLEMENT A CONSUMER BEHAVIOR MODEL SPECIFICALLY, THE COMPANY SHOULD IMPLEMENT A CONSUMER BEHAVIOR MODEL CREATED AROUND HOW CUSTOMERS THINK, FEEL AND BEHAVE TO GUIDE DECISIONS CREATED AROUND HOW CUSTOMERS THINK, FEEL AND BEHAVE TO GUIDE DECISIONS PERTAINING TO PRODUCT, MESSAGE, PLACEMENT AND PRICINGPERTAINING TO PRODUCT, MESSAGE, PLACEMENT AND PRICING
FeelThink
Behave
Brand Awareness
Product Perceptions
Purchasing DecisionsConsumer Behavior
Building Consumer Behavior ProfileBuilding Consumer Behavior Profile
OUR TEAM DEVELOPED THE PRELIMINARY MODEL USING INFORMATION AVAILABLE WITHIN OUR TEAM DEVELOPED THE PRELIMINARY MODEL USING INFORMATION AVAILABLE WITHIN THE COMPANY AND FROM RETAILERS IN THE U.S. WITH THE OBJECTIVE OF UNDERSTANDING THE COMPANY AND FROM RETAILERS IN THE U.S. WITH THE OBJECTIVE OF UNDERSTANDING GENERAL CONSUMER BEHAVIOR CHARACTERISTICS THAT SHOULD BE CONSIDERED WHEN GENERAL CONSUMER BEHAVIOR CHARACTERISTICS THAT SHOULD BE CONSIDERED WHEN ESTABLISHING COMMUNICATION AND DISTRIBUTION PROGRAMSESTABLISHING COMMUNICATION AND DISTRIBUTION PROGRAMS
FeelThink
Behave
Brand Awareness
Product Perceptions
Purchasing Decisions
Store buyers interviews
Store visits
Suunto Product managers
Suunto survey
Consumer Behavior
Input Input Building Consumer Behavior ProfileBuilding Consumer Behavior Profile
Communication Programs
DistributionPrograms
SUUNTO MUST INTERNALIZE THIS PROCESS AND CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILESUUNTO MUST INTERNALIZE THIS PROCESS AND CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILE
Microsoft Research
Answers to who, why, how and where from the customer perspective
Need Recognition
Search for Alternatives
Evaluation of Alternatives
Purchase of the Product
Use of the Product
Thin
kTh
ink
Feel
Feel
Beh
ave
Beh
ave
Potential CustomerPotential Customer
Active participant
Median age of 30
Male dominated
High average income
High education level Technology proficient
Part of a community
Influenced by heroesTrend setter
Why do consumers desire a product?
Performance improvement; Performance verification; Direction; Safety; Image; StatusHow do consumers develop knowledge of product?
User advocates; Role model influence; Independent research; Retail salespersons; AdvertisingHow do consumers judges benefit of product?
Better game; Reliability; Quality; Ease of use; Offers features beyond “needs”; Style; Relative value
Where do consumers go to buy the product?
Consumers research the product and then go to the nearest store to get the final “push” to back up their decision of buying the product
BY UNDERSTANDING WHO IS SUUNTO’s POTENTIAL CUSTOMER, WHY HE BUYS, HOW HE BY UNDERSTANDING WHO IS SUUNTO’s POTENTIAL CUSTOMER, WHY HE BUYS, HOW HE SEARCHES FOR INFORMATION AND WHERE HE BUYS, SUUNTO WILL BE IN A BETTER SEARCHES FOR INFORMATION AND WHERE HE BUYS, SUUNTO WILL BE IN A BETTER POSITION TO DESIGN MARKETING STRATEGIES THAT WILL ULTIMATELY HELP THE COMPANY POSITION TO DESIGN MARKETING STRATEGIES THAT WILL ULTIMATELY HELP THE COMPANY TO INCREASE SALESTO INCREASE SALES
COMMUNICATION STRATEGYCOMMUNICATION STRATEGY
SA
LE
S
UNDERSTANDING SUUNTO’S CURRENT POSITION IN THE MARKET DEVELOPMENT CYCLE IS UNDERSTANDING SUUNTO’S CURRENT POSITION IN THE MARKET DEVELOPMENT CYCLE IS IMPORTANT TO DESIGNING AN APPROPRIATE COMMUNICATION STRATEGYIMPORTANT TO DESIGNING AN APPROPRIATE COMMUNICATION STRATEGY
Focus on communicating ability of product to differentiate or improve current performance.
Focus on stimulating solid references and reviews from the Early Adopters
Focus on creating brand image and on the communication of proven product results
Market Development Cycle
Early Adopters Early Majority Late Adopters Laggards
Mass media advertisingMass media advertisingGuerilla MarketingGuerilla Marketing
-
+
Bra
nd
Aw
aren
ess
Advertising Spending +-
Procter&GambleSpalding
Reebok
PumaSpeedo
MANY COMPANIES HAVE ACHIEVED STRONG BRAND AWARENESS WITHOUT MASSIVE MANY COMPANIES HAVE ACHIEVED STRONG BRAND AWARENESS WITHOUT MASSIVE ADVERTISING INVESTMENT, INSTEAD FOCUSING ON BUILDING BRANDS THROUGH GUERILLA ADVERTISING INVESTMENT, INSTEAD FOCUSING ON BUILDING BRANDS THROUGH GUERILLA MARKETING TACTICSMARKETING TACTICS
Brand Awareness vs. Ad Spending (Illustrative)
IllustrativeIllustrative
PUMA AND SPEEDO, BOTH WELL KNOWN SPORTING BRANDS, ARE GREAT EXAMPLES OF PUMA AND SPEEDO, BOTH WELL KNOWN SPORTING BRANDS, ARE GREAT EXAMPLES OF EFFECTIVE GUERILLA MARKETING, FOCUSING ON TARGETING CORE CONSUMERS THROUGH EFFECTIVE GUERILLA MARKETING, FOCUSING ON TARGETING CORE CONSUMERS THROUGH SELECTIVE COMMUNICATION METHODSSELECTIVE COMMUNICATION METHODS
(1) Sports Industry Brand and Athlete Awareness Study (2002)Source: Sporting Goods Business
Ranked 4th in brand awareness(1), spending less than $3M on advertising (2001)Conveying its message using a "seed-and-spread" strategy
• Works with a product placement agency to get its collections on musicians/actors
• Has non-financial relationships with artists • Maintains selective distribution in hip stores e.g., Barneys,
Urban OutfittersSuccessfully created a unique brand image on the street
• "We try to build as an alternative, anti-establishment brand" - Global Director of Brand Management
• "There's hipness to Puma right now, and that's why they only have to spend $3 million on advertising"
- President and CEO of TSE Sports and Entertainment
Ranked 9th in brand awareness(1), spending $2M on marketing in 2001Focuses on PR and relationship with targeted user groups
• Signs top swimmers as models/endorsers to get exposure (e.g., Olympics)
• 75 Speedo stores help increase brand awareness• Maintains relationship with over 800 swim clubs in US
Closely monitors and understands the consumer needs• "It's not just putting money behind ads, but finding new
opportunities and things that will hit your core market, and keeping you finger on the pulse of everything."
- President and CEO of TSE Sports and Entertainment
IN ADDITION TO TRADITIONAL DIRECT ADVERTISING TO POTENTIAL CUSTOMERS, SUUNTO’S IN ADDITION TO TRADITIONAL DIRECT ADVERTISING TO POTENTIAL CUSTOMERS, SUUNTO’S MARKETING TACTICS SHOULD AIM TO DEVELOP A POSITIVE COMMUNICATION LOOP AMONG MARKETING TACTICS SHOULD AIM TO DEVELOP A POSITIVE COMMUNICATION LOOP AMONG USERS AND POTENTIAL CUSTOMERS BY CREATING ADVOCATES FOR ITS PRODUCTSUSERS AND POTENTIAL CUSTOMERS BY CREATING ADVOCATES FOR ITS PRODUCTS
3. User Conversion
Focuses on the more traditional advertisement methods as well as on alternative methods to reach out to the target customer base.
2. Advocate Outreach
Focuses on building the opportunity for advocates to reach out and influence potential buyers
1. Post Purchase
Focuses on the conversion of an existing Suunto user into an advocate who has positive experience with Suunto products and/or services
POTENTIAL POTENTIAL CUSTOMERCUSTOMER
11
22
33
USERUSER
ADVOCATEADVOCATE
SUUNTO HAS BEEN ACTIVELY PURSUING VARIOUS PROMOTIONAL ACTIVITIES IN ALL STAGES SUUNTO HAS BEEN ACTIVELY PURSUING VARIOUS PROMOTIONAL ACTIVITIES IN ALL STAGES OF THE LOOP, HOWEVER SUUNTO MAY COORDINATE THE ACTIVITIES BETTER TO ACHIEVE OF THE LOOP, HOWEVER SUUNTO MAY COORDINATE THE ACTIVITIES BETTER TO ACHIEVE GREATER EFFICIENCYGREATER EFFICIENCY
USERUSER
ADVOCATEADVOCATE
1. Post Purchase• Post-purchase support through
HelpDesk• Information shared on Suunto
Sports.com (Forums, travel logs)
• FAQ, User Manual, warranty registration through Suunto. com
2. Advocate Outreach• Whistler/Blackcomb Partnership • Outdoor University• Association with various outdoor
organizations (NSP, PSIA)
3. User Conversion• Advertisement and product
reviews in specialty magazines• Retail support through displays,
brochures, and other POP materials
• Sponsorships (i.e. Whistler/ Blackcomb Freeride Team)
• Trade Shows (i.e. Outdoor Retailer Trade Show)
POTENTIAL POTENTIAL CUSTOMERCUSTOMER
COMMUNICATION PROGRAMS SHOULD BE DESIGNED TO SPECIFICALLY REACH CONSUMERS COMMUNICATION PROGRAMS SHOULD BE DESIGNED TO SPECIFICALLY REACH CONSUMERS AT ALL STAGES TO ENSURE NEW CUSTOMER ACQUISTION IS STIMULATED THROUGH MANY AT ALL STAGES TO ENSURE NEW CUSTOMER ACQUISTION IS STIMULATED THROUGH MANY ANGLESANGLES
Stage in Loop Initiative Description
Suuntosports. com
Suuntosports. com
Web ads and billboards
Web ads and billboards
Trial ProgramsTrial Programs
Post PurchasePost PurchasePost PurchasePost Purchase
User User ConversionConversion
User User ConversionConversion
• Provide incentives to turn active Suunto users into advocates through positive user experiences
• Give exclusive service/support to owners through Suunto.com, Suuntosports.com and other Suunto managed communication channels
• Develop and maintain a strong relationship with influential members of the community who actively communicate Suunto’s benefits to other users
• Tie up with well regarded schools in each sport segment and coordinate lessons which demonstrate the performance benefits of sports instruments
• Trial programs at targeted locations allow potential users to actually experience the benefits of Suunto products before taking the “plunge”
• Targeted advertisement through the web and through billboards is an efficient way to reach a larger portion of potential users
Tactics
Advocate Advocate OutreachOutreachAdvocate Advocate OutreachOutreach
Pro DealsPro Deals
Suunto Pro Lessons
Suunto Pro Lessons
• Periodic newsletter with user tips, special discount offers, and information on sport related activities
• Rewards such as Suunto branded hats/t-shirts for posting logs and referring new members
• Discount/Giveaways to influential community members (instructors, performers) to create instant advocates
• Trial programs allowing target users to use product for a limited amount of time
• Coordinated lessons structured around Suunto products to improve performance
• Billboard placement on highways leading up to major ski resorts/National Parks
• Web ads focused on major sports-related sites and technology/travel sites
CASE STUDY: TIVO HAS SUCCESSFULLY DEVELOPED A DEDICATED COMMUNITY AMONG CASE STUDY: TIVO HAS SUCCESSFULLY DEVELOPED A DEDICATED COMMUNITY AMONG EXISTING USERS BY SUPPORTING USER DRIVEN COMMUNITY SITES SUCH AS EXISTING USERS BY SUPPORTING USER DRIVEN COMMUNITY SITES SUCH AS TIVOCOMMUNITY.COM AND BY OFFERING EXCLUSIVE SERVICES TO ITS SUBSCRIBERSTIVOCOMMUNITY.COM AND BY OFFERING EXCLUSIVE SERVICES TO ITS SUBSCRIBERS
Post PurchasePost Purchase
The company encourages TiVo owners to host what might be dubbed "TiVo-ware parties," … TiVo-ware parties give non-users the chance to experience some of TiVo's features, such as pausing the show or rewinding it for an instant replay. TiVo sometimes
creates special content around a big event, such
as the Super Bowl or the Oscars, that only TiVo
owners can watch. – Fast Company
Emphatic TiVo fans came in droves. More than 100 members of the TiVo Community Forum clustered around a barbecue,
swapping screen names and software-upgrade tips. Most of them had never met. The
thread that binds these tech fans together is an unabashed love for TiVo, the
digital video recorder with a Mac-like devotion and following. – Tech TV
Total Cumulative Subscriptions
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Apr 30,2001
Jul 31,2001
Oct 31,2001
Jan 31,2002
Apr 30,2002
Jul 31,2002
Oct 31,2002
Jan 31,2003
CASE STUDY: PALM SUCCESSFULLY LAUNCHED ITS PDAs WITH MINIMAL ADVERTISEMENT CASE STUDY: PALM SUCCESSFULLY LAUNCHED ITS PDAs WITH MINIMAL ADVERTISEMENT SPENDING, INSTEAD RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH AS MONEY-SPENDING, INSTEAD RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH AS MONEY-BACK GUARANTEES AND REFERRAL PROGRAMSBACK GUARANTEES AND REFERRAL PROGRAMS
• The April 1996 launch of the PalmPilot™ in the U.S. market went ahead with a launch budget of less than $5M
• Palm began by “seeding models with influential analysts and journalists to get a buzz going...” (Khermouch, 1997)
• A no-questions-asked, money-back guarantee was offered to reduce the purchase risk to consumers
• Finally, simple customer loyalty programs were established, rewarding customers who referred new customers to Palm
Source: BusinessWeek
Advocate OutreachAdvocate Outreach
CASE STUDY: SUBARU HAS SUCCESSFULLY BRANDED ITSELF AS A SUPPLIER OF RUGGED CASE STUDY: SUBARU HAS SUCCESSFULLY BRANDED ITSELF AS A SUPPLIER OF RUGGED OUTDOOR VEHICLES BY ASSOCIATING ITSELF WITH MULTIPLE ORGANIZATIONS THROUGH A OUTDOOR VEHICLES BY ASSOCIATING ITSELF WITH MULTIPLE ORGANIZATIONS THROUGH A VIP PARTNERS PROGRAMVIP PARTNERS PROGRAM
Subaru VIP Partners ProgramMembers of participating organizations are now eligible for Subaru's VIP Partners Program. This program allows members to purchase or lease any new Subaru vehicle at dealer invoice cost. Savings may be as much as $1,300 - $3,000 off the manufacturer's suggested retail price, depending on model selected.
User ConversionUser Conversion
CASE STUDY: POLAR HAS AGGRESSIVELY PURSUED A COMPREHENSIVE COMMUNICATION CASE STUDY: POLAR HAS AGGRESSIVELY PURSUED A COMPREHENSIVE COMMUNICATION STRATEGY THROUGH PARTNERSHIPS AND GRASS ROOTS COMMUNCIATION AND HAVE STRATEGY THROUGH PARTNERSHIPS AND GRASS ROOTS COMMUNCIATION AND HAVE CAPTURED NEARLY 80% OF THE HEART RATE MONITOR MARKET IN THE U.S.CAPTURED NEARLY 80% OF THE HEART RATE MONITOR MARKET IN THE U.S.
User ConversionUser Conversion
Polar has integrated various low-cost tactics into a comprehensive communication strategy. As a result they have established themselves as the leading brand for HRMs, and have been wildly successful in converting potential users into actual customers.
Trial Program
Sweepstakes
Event Participation
Special Events
SUUNTO’S WHISTLER BLACKCOMB PROGRAM DEMONSTRATES THE SUCCESS OF AN SUUNTO’S WHISTLER BLACKCOMB PROGRAM DEMONSTRATES THE SUCCESS OF AN AGGRESSIVE APPROACH TO BRAND DEVELOPMENTAGGRESSIVE APPROACH TO BRAND DEVELOPMENT
Partnership activities include: Installation of 85 Digital Clocks (with altitude information) at the bottom, middle and top of all
lift stations, customer service locations, restaurants and ski schools Exclusive sponsorship of Whistler/Blackcomb Freeride team Supply of wristops to the Atomic Dave Murray Racing Camp coaches and to the top 20 Ski
Instructors & the 2 Demo Teams
Benefits to Suunto: Rights to use the Official Whistler/Blackcomb logo in all advertising Suunto Station installed in the Mountaintop Business center allows S6 users to download
data and print results Visibility to over 2.2 million visitors to the mountains and over 7 million hits on their web site Realization of $27,000 increase in sales in the Whistler area alone
Cost to Suunto: $16,000
KEY TAKEAWAYS – COMMUNICATION STRATEGYKEY TAKEAWAYS – COMMUNICATION STRATEGY
In order to reach a larger audience of potential customers, Suunto must pursue a more broad-based communication strategyMany companies have successfully built brand awareness without substantial expense by using creative guerilla marketing tactics to facilitate word-of-mouth momentum
• Suunto’s post purchase relationship with users through Suuntosports.com is a strong start to creating a loyal user base that will ultimately drive growth in the U.S. market
• In the Tactics and Programs section of this report, specific ideas are outlined. The objective of these programs is to create Suunto advocates, strengthen product awareness and build the Suunto brand
• Virtual Caddy, Smart Sailing and S6 Try MeAdditionally, Billboard and Web advertising is recommended in the Tactics and Programs section as a means of expanding reach to a broader audience than current sport specific print mediaTargeted partnerships such as that at Whistler/Blackcomb are a highly visible and efficient way to increase awareness among potential customers and create brand loyalty among core users
DISTRIBUTION STRATEGYDISTRIBUTION STRATEGY
Functions/ CharacteristicsSpecialty
Sports ChainSpecialty Sports
IndependentsGeneral Sports
Technology Category Killers
Watch Specialty
Fashion
Gol
f Chan
nels
Specia
lty R
etai
lers
Pro S
hops
Disco
unters
Prim
ary
Match to Customer Target 5 5 4 2 1 3Accessibility to Customer Target 3 2 3 4 1 2Complementary Brand Image 5 3 3 4 3 5Image Fit - Sport Equipment Concept 5 5 4 1 1 1Image Fit - Computer Concept 2 1 2 5 2 1Sport Knowledge of Sales Staff 5 5 3 1 1 1Tech Knowledge of Sales Staff 2 1 2 5 2 1Customer Service 4 5 3 3 5 3Market Research/ Feedback Potential 4 2 3 2 1 1Prominence of Product Placement 3 2 3 4 4 2Potential to Carry Full Product Line 2 1 4 5 5 1Scalability for Future Product Lines 3 2 5 5 1 2
Weighted Channel Attractiveness Index 10.91 8.69 9.60 10.09 6.34 5.80
Prim
ary
Seco
ndar
yIN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS NEEDED TO SERVE SUUNTO’S IN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS NEEDED TO SERVE SUUNTO’S TYPICAL CONSUMER WITH THE DISTRIBUTION CHANNELS APPROPRIATE FOR THE WRISTOP TYPICAL CONSUMER WITH THE DISTRIBUTION CHANNELS APPROPRIATE FOR THE WRISTOP PRODUCTS RESULTED IN A RANKING LED BY SPECIALTY SPORTS CHAINS, BUT ALSO SHOWS PRODUCTS RESULTED IN A RANKING LED BY SPECIALTY SPORTS CHAINS, BUT ALSO SHOWS CATEGORY KILLERS AND GENERAL SPORTS ARE INTERESTING CHANNELS TO EXPLORE CATEGORY KILLERS AND GENERAL SPORTS ARE INTERESTING CHANNELS TO EXPLORE
The Index is calculated as a sum of the average of Primary and Secondary functions, with Primary functions receiving 200% weighting and Secondary functions receiving 100% weighting.Functions/ Characteristics definitions are in the Appendix section; Examples of channels above: Specialty Sports Chain: REI/ West Marine; General Sports: Sports Authority; Technology Category Killer: Best Buy; Watch Specialty – Torneau; Fashion - Barneys
General Sports35%
Footwear & Apparel33%
Specialty Sports - Outdoor
16%
Manufacturer Owned5%
Specialty Sports - Hunting/Fishing
4%
Specialty Sports - Golf4%
Other*3%
AN ANALYSIS OF SGB’s ANNUAL REPORT OF THE TOP 100 SPORTING GOODS RETAILERS IS A AN ANALYSIS OF SGB’s ANNUAL REPORT OF THE TOP 100 SPORTING GOODS RETAILERS IS A USEFUL STARTING POINT FOR ANALYZING SUUNTO’S PENETRATION OF MAJOR RETAILERS USEFUL STARTING POINT FOR ANALYZING SUUNTO’S PENETRATION OF MAJOR RETAILERS IN THE UNITED STATESIN THE UNITED STATES
Top 100 Sporting Goods Retailers – 2001 SalesTop 100 Sporting Goods Retailers – 2001 Sales Sporting Goods Business Retail Top 100Sporting Goods Business Retail Top 100
Revenue # Stores
General Sports 8,681 27
Footwear & Apparel 8,268 23
Specialty Sports - Outdoor 4,028 17
Manufacturer Owned 1,360 6
Specialty Sports - Hunting/Fishing 880 2
Specialty Sports - Golf 1,018 11
Other 782 14
25,016 100
* Other includes specialty sports retailers for biking, running, fitness equipment, marine, soccer and team sports apparel.
Source: Sporting Goods Business, June 2002
Store Sales
# of Stores
SuuntoSales
SuuntoRank
($MM) ($K)
L.L. Bean 1,140 3* 30 25 Cabelas 875 7 26 30 REI 740 61 1,223 1
Gander Mtn. 250 55
Orvis 230 26 19 45 EMS 180 86 147 7
Sportsman's Guide 169 1
Sportsman's WH 110 8 Campmor 85 1 52 15 Christy Sports 43 36 7 105
Kittery Trading 42 1 Popular 35 23 66 14
SUUNTO HAS DEEP PENETRATION OF THE PREMIER OUTDOOR SPECIALTY RETAILERS, SUUNTO HAS DEEP PENETRATION OF THE PREMIER OUTDOOR SPECIALTY RETAILERS, HOWEVER CERTAIN STORES MAY BE PERFORMING BELOW POTENTIAL RELATIVE TO THEIR HOWEVER CERTAIN STORES MAY BE PERFORMING BELOW POTENTIAL RELATIVE TO THEIR SIZE. STRONG SALES AT GALYAN’S SUGGEST THE GENERAL SPORTS CATEGORY SHOULD SIZE. STRONG SALES AT GALYAN’S SUGGEST THE GENERAL SPORTS CATEGORY SHOULD BE EXPLORED FURTHERBE EXPLORED FURTHER
Store Sales
# of Stores
SuuntoSales
SuuntoRank
($MM) ($K)
Sports Authority 1,400 198
Dicks 1,050 125
Champs Sports 800 574
Academy Sports 775 60
Big 5 663 252 Galyan's 483 26 379 3
Modell's 460 90
Sportmart 370 72
Gart 310 62
Oshman's 256 45
Eastbay 250 1
Scheel's 250 20
Top Ten General Sports RetailersTop Ten General Sports RetailersTop Ten Outdoor Specialty Sports RetailersTop Ten Outdoor Specialty Sports Retailers
* Excludes outlet stores
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales, 2002 Suunto sales
Suunto USA 2002 Sales - % # of StoresSuunto USA 2002 Sales - % # of StoresSuunto USA 2002 Sales - % Dollar VolumeSuunto USA 2002 Sales - % Dollar Volume
CURRENTLY, 90% OF SUUNTO USA’s RETAIL RELATIONSHIPS ACCOUNT FOR ONLY 27% OF CURRENTLY, 90% OF SUUNTO USA’s RETAIL RELATIONSHIPS ACCOUNT FOR ONLY 27% OF WRISTOP DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS* ACCOUNT FOR 41% OF WRISTOP DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS* ACCOUNT FOR 41% OF WRISTOP DOLLAR VOLUMEWRISTOP DOLLAR VOLUME
>$1MM19%
$500-999K8%
$250-499K16%
$100-249K6%
$50-9910%
$10-49K19%
$1-10K20%
<$1K2%
c
$50-991%
$10-49K8%
$1-10K53%
<$1K37%
>$100K1%
* Top five relationships include REI, Army/Air Force, Galyans, Niche Retail, and Backcountry
GIVEN A SIGNIFICANT NUMBER OF SUUNTO’S ACCOUNTS ARE INDEPENDENT RETAILERS, GIVEN A SIGNIFICANT NUMBER OF SUUNTO’S ACCOUNTS ARE INDEPENDENT RETAILERS, SUUNTO MUST MONITOR THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED SUUNTO MUST MONITOR THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED RETAILERS ALIGN WITH SUUNTO’S BRAND POSITIONING RETAILERS ALIGN WITH SUUNTO’S BRAND POSITIONING
Monitoring programs such as that recently established with Franklin Resources are important to avoid any damage to Suunto’s image, strategy and ultimately sales
• A detail as simple as the product placement can damage the entire pricing, communication and product strategy
• It is difficult to communicate a premium brand at high end prices when the product is poorly displayed as shown in the picture taken at Marmot in Berkeley, CA
MARMOT MOUNTAIN WORKS Store. 3049 Adeline Street, Berkeley, CA
OAKLEY HAS TRADITIONALLY EMPLOYED A HIGHLY SELECTIVE DISTRIBUTION STRATEGY, A OAKLEY HAS TRADITIONALLY EMPLOYED A HIGHLY SELECTIVE DISTRIBUTION STRATEGY, A CASE SUUNTO MAY CONSIDER EMULATING AS IT BUILDS THE SUUNTO BRAND CASE SUUNTO MAY CONSIDER EMULATING AS IT BUILDS THE SUUNTO BRAND
Prior to its recent diversification, Oakley consistently pursued a selective distribution strategy for its sunglasses to:Prior to its recent diversification, Oakley consistently pursued a selective distribution strategy for its sunglasses to:Limit number of doors
• Four years after launching the sunglass line, Oakley stopped soliciting new retail accounts in the US (approx. 7,000 doors were carrying Oakley at that time)
• Accounts that failed to meet the Company's standard were eliminated• As of the company’s IPO in 1995, Oakley sold its products through 7,100 selected retailers with a combined total of 9,500 doors. In comparison, Bolle
sold its products through more than 14,000 doors• Most of the Company's accounts, other than sunglass retail chains, were single stores
Create an exclusivity to the Oakley brand• Sold primarily to optical, specialty sunglass and sporting goods stores, carefully selected to complement the high-quality image of the product• Never sold in discount stores, drug stores or department stores
Ensure a high standard of service• Selected stores represented specialty retailers with employees that typically were more product knowledgeable, more customer-service oriented, and
better able to educate the customer on the superior attributes of the Oakley productsBuild account loyalty
• Oakley required all of its accounts to agree not to sell or divert Oakley products to unauthorized dealers and such sales were monitored via a tracking code
• In return, Oakley products provided strong, reliable margins because of the limited competition and lack of product discounting • Retailers were more likely to give Oakley product prominent shelf space and make timely payments
Despite limited account expansion, Oakley grew by increasing sales per accountDespite limited account expansion, Oakley grew by increasing sales per accountU.S. sales per door increased 50% from 1992-1995, which equates to a compound annual growth rate of about 22%. The increased sales per door approximate a same-store sales figure Sales achieved through mix changes and product expansion with limited door expansion at various accounts
OAKLEY CONTINUES TO EMPHASIZE CAREFUL MANAGEMENT OF ITS DISTRIBUTION CHANNEL OAKLEY CONTINUES TO EMPHASIZE CAREFUL MANAGEMENT OF ITS DISTRIBUTION CHANNEL EVEN AS THE COMPANY’S PRODUCT OFFERINGS HAVE EXPANDEDEVEN AS THE COMPANY’S PRODUCT OFFERINGS HAVE EXPANDED
More recently, Oakley has diversified its product line and expanded its distribution network, however this was More recently, Oakley has diversified its product line and expanded its distribution network, however this was accompanied by the implementation of the Oakley Premium Dealer program (OPD)accompanied by the implementation of the Oakley Premium Dealer program (OPD) Today, Oakley’s products are distributed through approximately 9,200 accounts and 15,600 doors in the United States
• Comprised of optical stores, sunglass retailers and specialty sports stores, including bike, surf, ski and golf shops, and motorcycle, athletic footwear and sporting goods stores and department stores
• The Company continues not to sell its current season products through discount stores, drug stores or traditional mail-order companies
The OPD strategy was launched in 2000• Intended to enable consumers to identify retailers that offer the broadest selection and latest Oakley products• OPD partners will carry all categories of Oakley products that are consistent with the store’s offering and are required to carry a
minimum level of sunglass inventory as well as obligated to buy at least 50% of Oakley’s new styles• Oakley does not give these dealers preferential pricing, however it offers them exclusive products • The OPD partners are eligible for a cooperative marketing and advertising prioritization that includes a positioning on Oakley’s web
site as well as tagging in Oakley’s annual print and outdoor advertising campaigns• For example, Champs qualified for the OPD program in September 2001, and about 650 Champs stores in the U.S. carry Oakley
products and 30 stores will have a dominant Oakley selling area featuring sunglasses, footwear, apparel and watches. In addition, the highest volume Champs stores (100 stores) will double its shelf space devoted to Oakley sunglasses
• Oakley has enlisted 2,400 U.S. dealers thus far in its OPD program
Distribution also now includes Oakley owned stores and store-in-store format with select department storesDistribution also now includes Oakley owned stores and store-in-store format with select department storesOwned stores include 14 O Stores, 5 Oakley Vaults (outlet stores), oakley.com, and 64 mall based specialty sunglass stores
DISTRIBUTION TO SPECIALTY STORES IS KEY TO ESTABLISHING THE SPORT COMPUTER IN DISTRIBUTION TO SPECIALTY STORES IS KEY TO ESTABLISHING THE SPORT COMPUTER IN GOLF AND CURRENT SUUNTO SALES FORCE NETWORKS ARE WELL EQUIPED TO SERVE THIS GOLF AND CURRENT SUUNTO SALES FORCE NETWORKS ARE WELL EQUIPED TO SERVE THIS HIGHLY CONCENTRATED CHANNELHIGHLY CONCENTRATED CHANNEL
Golf Channel Retail Sales – 1997Golf Channel Retail Sales – 1997 Top Ten Specialty Golf Stores Sales ($MM)- 1997Top Ten Specialty Golf Stores Sales ($MM)- 1997
Nevada Bob's 450
Pro Golf Discount 195
Golfsmith 180
Edmin Watts 160
Golf Day 78
Golf USA 70
Las Vegas Discount Golf 65
Special Tee Golf 61
International Golf 55
Somerton Springs 43
* Specialty sport defined as sporting goods stores specializing in four or less product lines
Source: SBI Market Profile: Golf Equipment and Accessories 1998; Golf Pro Magazine
400
800
1,200
Specia
lty S
port*
Pro S
hops
Discou
nt S
tore
s
Ord
er
Gener
al Spo
rt
Depar
tmen
t Sto
res
Other
WHILE INDEPENDENT SPECIALTY STORES DID NOT SCORE HIGHLY IN OUR CHANNEL WHILE INDEPENDENT SPECIALTY STORES DID NOT SCORE HIGHLY IN OUR CHANNEL ATTACTIVENESS INDEX FOR SUUNTO OVERALL, THE GOLF SEGMENT HAS UNIQUE ATTACTIVENESS INDEX FOR SUUNTO OVERALL, THE GOLF SEGMENT HAS UNIQUE CHARACTERISTICS THAT SUGGEST PRODUCT PLACEMENT IN THIS CHANNEL MAY HAVE CHARACTERISTICS THAT SUGGEST PRODUCT PLACEMENT IN THIS CHANNEL MAY HAVE MERIT FOR INCREASING BRAND AWARENESS AND CAPTURING CORE GOLF ENTHUSIASTSMERIT FOR INCREASING BRAND AWARENESS AND CAPTURING CORE GOLF ENTHUSIASTS
Rationale• Pro shops are a good fit for Suunto and should be
emphasized even though current sales force networks may not have such reach
• Pro shops tend to specialize in high-end equipment and carry niche or impulse oriented items
• Demographic profile strongly aligned with Suunto’s pricing strategy
• Specialty stores may have dollar volume but not traffic – for example “consumables" such as balls are typically bought at discounters
Challenging Implementation• Fragmented structure of pro shops requires
intensive sales function• Initially, this can be reduced by targeting high end
resorts and schools only• Additionally, focus should be on GPS mapped
courses where technology has prior acceptance • Channel should be valued as a communication
tool as well as distribution
OUR CHANNEL ATTRACTIVENESS MATRIX ALSO SUGGESTS THAT TECHNOLOGY CATEGORY OUR CHANNEL ATTRACTIVENESS MATRIX ALSO SUGGESTS THAT TECHNOLOGY CATEGORY KILLERS REPRESENT A POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE KILLERS REPRESENT A POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE TECHNOLOGY PROFICIENCY OF SUUNTO’S TARGET CONSUMERS AS WELL AS SUUNTO’S TECHNOLOGY PROFICIENCY OF SUUNTO’S TARGET CONSUMERS AS WELL AS SUUNTO’S INITIATIVES WITH MICROSOFT AND POSITION AS A SPORT COMPUTER BRANDINITIATIVES WITH MICROSOFT AND POSITION AS A SPORT COMPUTER BRAND
Right place for target market
Trend Setting Info SeekersMost likely to have MSN as their ISP (26%)Likely to work in computer related retail (15%) and finance/ consulting/ accounting (12%)
Young Mobile AchieversAlways on the go; likes travelLikely to work in computer related businesses (13%)
Sports EnthusiastNot necessarily “active”Favorite sports: Football (college and professional) and baseball
In general, younger demographics, high average income, high education level
N-Series Consumer Behavior ProfileN-Series Consumer Behavior Profile
Microsoft Research 2002Microsoft Research 2002
Mass appeal and technology emphasis of the channel reflects target consumer of N-SeriesChannel offers benefit for differentiating Suunto as a computer vis-à-vis watchesThe channel also represents a good fit for Suunto’s traditional target consumer profile described earlier as technology proficient
Category Killer Functions and CharacteristicsCategory Killer Functions and Characteristics
“Consumer electronic stores like Best Buy and Circuit City have come to be known as the toy store of the American adult male”2003 Market Study: Information Technology & North American Category Killers- IHL Consulting Group
THE N-SERIES REPRESENTS THE ENTRY POINT INTO THE TECHNOLOGY CHANNEL, HOWEVER THE N-SERIES REPRESENTS THE ENTRY POINT INTO THE TECHNOLOGY CHANNEL, HOWEVER SUUNTO SHOULD TAKE THE OPPORTUNITY TO ESTABLISH THE SPORT INSTRUMENT SUUNTO SHOULD TAKE THE OPPORTUNITY TO ESTABLISH THE SPORT INSTRUMENT CATEGORY AND CAREFULLY MONITOR THE PRODUCT SUPPLY, BRAND IMAGE AND PRODUCT CATEGORY AND CAREFULLY MONITOR THE PRODUCT SUPPLY, BRAND IMAGE AND PRODUCT PLACEMENTPLACEMENT
• Given the low margin profits typical of Technology Category Killers’ operations, the current commissions Suunto pays to retailers seems to be suitable for the introduction of the product
STRATEGIC CONSIDERATIONS TO BE AWARE OF WHEN ENTERING CATEGORY KILLERS
Commissions
Product Supply
Brand Image
• The “No backorder” policies of most Techology Category Killers suggests that Suunto should review the current product supply if it decides to sell through this retailers
• Best Buy and Circuit City’s inventory policies and mass purchasing ensure that a given product is in stock and available
• Category Killers rely heavily on print and TV advertisement. This could be a great opportunity for Suunto to create brand awareness; nevertheless Suunto should target the premier stores that reflect the Suunto brand and monitor that Suunto’s traditional product line is adequately portrayed vis-à-vis the non-sport functions of the N-Series
KEY TAKEAWAYS – DISTRIBUTION STRATEGYKEY TAKEAWAYS – DISTRIBUTION STRATEGY
Suunto has strong penetration of specialty sports retailers, particularly for its x-sports and snow oriented products• Selective criteria should be implemented to ensure that retailers in this channel, many of which are independent
operations, reflect Suunto’s premium brand image• In return for the robust margins offered by Suunto, products should be expected to receive high quality
merchandising space in selected storesThere appears to be untapped potential among the general sports category, many of which carry a broad offering of outdoor sporting equipment
• Store quality in this channel can vary and any further exploration of this channel should emphasize the premium retailers only
In golf, a two-tiered distribution approach should be considered:• Only premium specialty retailers should be targeted and can be easily reached through current Wilson or Suunto
in-house sales forces• Pro shops of premier courses offer an opportunity to build product awareness among potential users and align with
the demographics appropriate for the G9The introduction of the N-Series creates the opportunity for Suunto to bring the whole product line to the technology category killers
• Positioning of Suunto as the “sport computer” is strengthened by entering this channel• Opportunity to extend reach to mass audience
MARKETING INFRASTRUCTURE MARKETING INFRASTRUCTURE
TO EVOLVE INTO A MARKET-CENTERED COMPANY, SUUNTO SHOULD ESTABLISH TO EVOLVE INTO A MARKET-CENTERED COMPANY, SUUNTO SHOULD ESTABLISH INTEGRATED MARKETING OPERATIONS FOR PRODUCT MANAGEMENT, NEW PRODUCT INTEGRATED MARKETING OPERATIONS FOR PRODUCT MANAGEMENT, NEW PRODUCT PLANNING AND MARKETING SUPPORTPLANNING AND MARKETING SUPPORT
Ad/PR
Mid/long term ad/PR planning & implementation
Ad/PR info collection and sharing w/ PM
Ad/PR effectiveness analysis
Ad/PR agency management
Marketing Research
Mid/long term market research planning & implementation
Market data collection & maintenance
Market research initiated by PM
Market research agency mgmt
Marketing Support
Marketing Support
Product portfolio/profitability Management
• Product planning & monitoring
• Product extension/ termination decision
• Brand value maximizationMarket research planning
• Required data definitionCommunication strategy planningCooperation w/ other functions
• Sales, production, procurement, research, Finance
New product development
• Cross-functional team
• Decision process (gate) preparation
Continuous ideation for new market opportunities
• Market analysis, internal interview, consumer research, etc
Brand/Product Management
Brand/Product Management
New Product Planning
New Product Planning
Suunto needs to develop its own organizational structure to incorporate the key operational functions
Suunto needs to develop its own organizational structure to incorporate the key operational functions
Key Operational Functions of a Global Consumer Marketing Company
SUUNTO NEEDS TO STRENGTHEN ITS MARKETING INFRASTRUCTURE COMPOSED OF SUUNTO NEEDS TO STRENGTHEN ITS MARKETING INFRASTRUCTURE COMPOSED OF INFORMATION, PEOPLE AND PROCESSINFORMATION, PEOPLE AND PROCESS
Strategic Marketing PlanningStrategic Marketing Planning
BrandingBranding PricingPricing DistributionDistributionCommuni-cationCommuni-cation
Brand/Product Management
Brand/Product Management
New Product DevelopmentNew Product Development Market ResearchMarket Research
InformationInformation PeoplePeople ProcessProcess
Marketing Strategies
MarketingMix
Marketing Operations
Marketing Infrastructure
KEY INITIATIVES TO IMPROVE SUUNTO’S MARKETING INFRASTRUCTUREKEY INITIATIVES TO IMPROVE SUUNTO’S MARKETING INFRASTRUCTURE
Infrastructure Description
InformationInformation
ProcessProcess
• Market analysis based on broad and accurate information about local markets and customers
• What information is examined?
• Development of capable talents who manage and analyze information
• Who is dealing with information?
• Efficient/ effective flow of information and interaction among people
• How is the process structured?
Initial Assessment
• Solid top-down market overview (size/penetration by sport sector)
• Detail info on local markets and consumers (bottom-up) required
• Marketer development needs to be improved
• Not enough local information / perspective for PM
• US branch positioned to focus trade marketing (distribution management)
PeoplePeople
Key Initiatives Detail
• Consumer DB• Information
sharing culture/ organization
• Assistant product managers (APM)
• Marketing process improvement for HQ
• End-user oriented implementation in US branch
Marketing Information
Management
Marketing Information
Management
Global Marketing Process
Enhancement
Global Marketing Process
Enhancement
Marketing Specialist
Development
Marketing Specialist
Development
Source: GlobeSmart, Team Analysis
IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT: CONSUMER INFORMATION AND IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT: CONSUMER INFORMATION AND INFRASTRUCTURE TO SHARE IT SHOULD BE ESTABLISHEDINFRASTRUCTURE TO SHARE IT SHOULD BE ESTABLISHED
• Profile of existing customers- Contact/Product/Complaints- Demographic/Preference
• Focused database for loyal customers- Special management of active loyal
customer (e.g., top 5% ) information- Basis of membership activities and
consumer research (e.g., focus group)
• Planned by PM/Customer Service• Maintained by Customer Service
Consumer database
Financial database(product)
Non-normalized market data
Development of Consumer Database
Spec
R&R
• Sales/profitability by product/retailer
• Managed by finance/control function
Spec
R&R
• 3d party market/ consumer research
• Managed by PM
Spec
R&R
Information SharingCulture/Organization
Information Creation & Maintenance
• Exchange and co-usage of information
• Company culture that favors knowledge sharing
- IT is only a piece of KM
• Multi-dimensional efforts required
- Top management initiative
- Incentive/reward- Communication/
teamwork
Comprehensive and
ExhaustiveCustomer
Understanding
Information Usage & SharingTechnology Culture
ENHANCEMENT OF MARKETING SPECIALIST DEVELOPMENT: ON-THE-JOB TRAINING TO ENHANCEMENT OF MARKETING SPECIALIST DEVELOPMENT: ON-THE-JOB TRAINING TO DEVELOP MARKETING SPECIALISTS REQUIREDDEVELOP MARKETING SPECIALISTS REQUIRED
Marketing Director
Marketing Director
PM for X-sport/SnowPM for X-
sport/SnowPM for X-
Marine/GolfPM for X-
Marine/GolfPM for DivingPM for Diving
PM for Compass
PM for Compass
APM APM ............
To develop a capable marketing specialists through mentorship/on-the-job-training
To develop a capable marketing specialists through mentorship/on-the-job-training
To strengthen market research by letting APM focus on basic market research and analysis
To strengthen market research by letting APM focus on basic market research and analysis
To help product managers spend more of their time on long-run significant tasks
(e.g., NPD)
To help product managers spend more of their time on long-run significant tasks
(e.g., NPD)
Introduction of Assistant Product Managers Primary Objectives
• Support PM’s works• Focus on basic market research• Rotate after 1~2 years
Marketing Headquarter
(Finland)
Marketing Headquarter
(Finland)
ENHANCEMENT OF GLOBAL MARKETING OPERATIONS PROCESS: HQ NEEDS TO HAVE MORE ENHANCEMENT OF GLOBAL MARKETING OPERATIONS PROCESS: HQ NEEDS TO HAVE MORE LOCAL MARKET INFORMATION, WHILE US BRANCH COLLECTS INFORMATION AND MAINTAINS LOCAL MARKET INFORMATION, WHILE US BRANCH COLLECTS INFORMATION AND MAINTAINS RELATIONSHIP WITH END-USERSRELATIONSHIP WITH END-USERS
• Development of global products based on localized information
- Research on local consumers (Europe, US, and Asia)
• Central management of global marketing activities
- Closed loop by monitoring implementation results
• Development of global products based on localized information
- Research on local consumers (Europe, US, and Asia)
• Central management of global marketing activities
- Closed loop by monitoring implementation results
• Strategic directions• Implementation guideline• Strategic directions• Implementation guideline
• Detail implementation planning• Market monitoring• Consumer/distributor info
• Detail implementation planning• Market monitoring• Consumer/distributor info
3-13-1 Marketing Process Improvement
• First-hand information source on US consumers/distributors
• Planning and implementation of detail marketing activities
- E.g., user group support
• First-hand information source on US consumers/distributors
• Planning and implementation of detail marketing activities
- E.g., user group support
3-23-2 End-user Oriented Implementation
LocalBranch
(US)
LocalBranch
(US)
KEY TAKEAWAYS - MARKETING INFRASTRUCTURE IMPROVEMENTKEY TAKEAWAYS - MARKETING INFRASTRUCTURE IMPROVEMENT
Marketing infrastructure can significantly impact on long-term performance
Improvement of marketing infrastructure is a result of combined efforts in information
technology, people development, process reorganization
- Reward system, incentives, and performance evaluation (e.g., KPIs) should be
aligned in accordance
Top management should constantly care about improving marketing infrastructure
MARKETING INFRASTRUCTURE ACTION PLANMARKETING INFRASTRUCTURE ACTION PLAN
Items Description
Marketing Information
Management
Marketing Information
Management
MarketingProcess
Realignment
MarketingProcess
Realignment
• Consolidation of consumer database• Clear roles & responsibilities in marketing data
management
• Master plan to develop marketing experts - Assessment of various alternatives
including introduction of Assistant Product Manager
• Redesign of product development/ management process in headquarters
• Assignment of information collection/ implementation planning function in local branch (US)
Goals
Marketing HR ImprovementMarketing HR Improvement
Roles&Responsibilty
• To increase market-driven consumer understanding (bottom-up)
• To build basis to conduct marketing campaigns targeting end-users
• To establish systematical infrastructure to develop capable marketers
• To strengthen local market understanding in product management/ development in headquarters
• To reposition local branch (US) as a local information provider and implementation planner
• PM – planning/analysis• Customer service –
IT/maintenance/ analysis
• Task force under CEO direction - planning
• Central board under CEO direction
• Marketing Director- planning
• Local branch – participation in planning
Suunto needs to consider creating a central discussion board to supervise and make decisions about the marketing infrastructure initiatives
Suunto needs to consider creating a central discussion board to supervise and make decisions about the marketing infrastructure initiatives
MARKETING INFRASTRUCTURE ACTION PLAN : MARKETING INFORMATION MANAGEMENTMARKETING INFRASTRUCTURE ACTION PLAN : MARKETING INFORMATION MANAGEMENT
Objective: To increase market-driven consumer understanding (bottom-up) and to build basis for end-user marketing campaigns
Rationale: • Currently, Suunto is focusing on solid top-down market overview (size/ penetration by sport sector)• Detailed studies on local markets and consumers required to complement the top-down perspectives• Special management of core loyal consumers (“user advocates”) required to improve referral marketing effects
Implementation Direction(1) Plan/ Design of Consumer Database• A PM will be responsible to consolidate other PM’s opinions and design information specification required for consumer database• Customer Service Manager will participate in planning and lead discussion on practical implementation and technical requirements• The dedicated PM will also develop plans to collect and maintain the consumer information, having close discussion with Commercial Operations and local branches• Marketing Director/ CEO will supervise the progress(2) Implementation/Analysis• Customer Service Manager will be in charge of constructing IT systems and operating consumer database• Customer Service Team will provide periodic analysis report on consumer data, after agreement with PM’s on the detailed report requirement• PM’s will analyze the consumer database for product management/ development
MARKETING INFRASTRUCTURE ACTION PLAN: MARKETING HR IMPROVEMENTMARKETING INFRASTRUCTURE ACTION PLAN: MARKETING HR IMPROVEMENT
Objective: To establish systematical infrastructure to develop capable marketers
Rationale: • Continuous development of capable marketers is a basis for transforming into a marketing-oriented company• Currently only a few of marketing-dedicated people work in headquarters
Implementation Direction(1) Establishment of Task Force• Under CEO direction, Marketing Director and HR specialist develop a report on marketing HR issues
- Assessment of current marketing-related HR practices- Benchmarking of marketing HR in global marketing companies- Development of marketing HR improvement plan
(2) Key Items To Be Reviewed• Organizational change
- Potentially introduction of Assistant Product Managers• Revision of recruiting/ selection process• Redefinition of marketing career track• Improvement of marketer education/ training• Revision of reward/ incentive system
MARKETING INFRASTRUCTURE ACTION PLAN: MARKETING PROCESS REALIGNMENTMARKETING INFRASTRUCTURE ACTION PLAN: MARKETING PROCESS REALIGNMENT
Objective: To strengthen local market understanding in product management/ development in headquartersTo reposition local branch (US) as a local information provider and implementation planner
Rationale: • Currently, information/perspectives of local markets not provided enough for PM’s at headquarters• Local branch (US) focusing on “trade marketing,” dealing with retailers, not end-users
Implementation Direction(1) Establishment of Central Board/ Task Force for Process Realignment• CEO will supervise the progress and make decisions• Marketing Director/ PM’s will develop a plan to redesign marketing process in headquarters, incorporating roles and responsibilities of local branches• Commercial Operations/ local branches will participate in the Board and discuss(2) Key Items To Be Reviewed• (New) Product development/management process
- How to incorporate local consumer needs and market situation• Process to communicate local market/ consumer situation to headquarters• Roles and responsibilities between headquarters (PM’s) and local branches
- Roles of local branch as a local information source and implementation planning
PROGRAMS & TACTICSPROGRAMS & TACTICS
SUMMARY OF POTENTIAL NEW WRISTOP MARKETING PROGRAMS & TACTICSSUMMARY OF POTENTIAL NEW WRISTOP MARKETING PROGRAMS & TACTICS
Program Description
Virtual CaddyVirtual Caddy• G9 training Aid Program; target instructors
from very well known golf academies to use G9 as a training aid tool
Goals Cost and Benefits
• Create advocates that will spread the word by exposing the benefits of the product
• approx $50K to reach approx. +75k players/year
Smart SailingSmart Sailing• M9 training aid program; target sailing
instructors of US Sailing Certificate Schools. Idea is to use M9 as a training aid tool
• Create advocates that will spread the word by exposing the benefits of the product
• approx $47K to reach approx. 20k sailors/year
S6 “Try Me” S6 “Try Me”
• “Try out sessions” in the best ski resorts of the US. Place a booth at the central area of the mountain and let skiers try the wristop computer for a few rides
• Attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides
• $35K to show the benefits to 11.5k potential users
BillboardsBillboards
Web AdsWeb Ads
• Billboard ads in targeted areas• Focus on snow and x-sport
• Ski resorts/national park
• To increase brand awareness • $ 110K with an expected reach of 3.4 million potential consumers
• Banner ads in targeted web sites• Generate traffic to Suunto’s web sites
• To increase brand awareness • $17K per month to reach 200k potential consumers
New marketing programs are more cost-effective than magazine ads• Magazine ads $16K per month to reach ~90K target consumers (1)
(1) 1 page ad for S6 on Skiing Magazine ($15,675 ); target consumers(88K) = target ratio(22%) x circulation (400K)Source: company data, team analysis
G9 TRAINING AID PROGRAM: “VIRTUAL CADDY” OVERVIEWG9 TRAINING AID PROGRAM: “VIRTUAL CADDY” OVERVIEW
Target: Golf instructors of well known Golf AcademiesObjective: Create advocates that will spread the word by demonstrating the benefits of the product and help build the brand
Rationale: • To capture Golf Academies as marketing media or tool for Suunto, a benefit for the Academy must exist. The top 25 Golf Academies in the U.S. emphasize and sell as a value added service to their customers the fact that they have computerized video analysis, techniques and technology to help the client to IMPROVE THEIR GAME. The benefit is clear for the academies, because Suunto represents another “trainer aid device” to offer to their clients, thus, there could be a competitive advantage for Academies that integrate the G9 as a improvement tool to help their customers….”The latest in training technology”• Technology proficiency of the teachers• 10 out of top 25 are in California, 2 in Carlsbad
Implementation:• Staged roll – out: start in one State (California), try the concept, build strong relationship with your users, create success stories and move to the next state• Selection criteria for the Golf Academies should include: prestige, location, technology usage for teaching purposes (see next slide for a proposed roll-out plan)• Try to develop a certificate for Academies such as the PADI case... For example, “Suunto compliance” or “Suunto inside” (as Intel program) to start creating the image of enabler compan… enabler in the sense of allowing players to improve their game
Expected Cost/Benefit: approximately $50K to reach +75k players/year… if just 10% of the players buy the wristop computer, Suunto could achieved the quota for two years
G9 TRAINING AID PROGRAM: TARGET GOLF ACADEMIESG9 TRAINING AID PROGRAM: TARGET GOLF ACADEMIES
Ranking Golf Academy Presence in California? Sytems to improve game?
1 Academy of Golf Dynamics X2 Aviara Golf Academy X X3 Balance Point Golf Schools X X4 Butch Harmon School of Golf X5 Classic Swing Golf School X6 Craft-Zavichas Golf School X X7 Dana Rader Golf School X8 Dave Pelz Scoring Game Schools X X9 David Leadbetter Golf Academy X
10 Dr. David Wright's Mind Under Par Golf School X X11 ESPN 3-Day Resort School X12 Extraordinary Golf X X13 Golf Advantage School X14 Grand Cypress Academy of Golf X15 Jim McLean Golf School X X16 John Jacobs' Golf Schools X X17 Kapalua Golf Academy X18 Martin Green Golf Academy X19 McGetrick Golf Academy X20 Natural Golf Schools X X21 Phil Ritson-Mel Sole Golf School X22 Pine Needles Learning Center X23 Resort Golf Schools X X24 Todd Sones Impact Golf School25 Tradition Golf School
G9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS G9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS
# Teachers/school 5hrs/week 10week/yr 40Hour training the professors 5
Wristop marginal cost per unit 150
Training Costs per hour 40POP+Brochures+ placement per School400
Assumptions
Location Wristop TrainingPOP+Brochures+
placementTotal Costs
California 7,500 2,000 4,000 13,500 Florida 7,500 2,000 4,000 13,500 Phoenix 4,500 1,200 2,400 8,100 Las Vegas 5,250 1,400 2,800 9,450 Texas 3,750 1,000 2,000 6,750
51,300
• Five instructors per Academy• Teaching 5 hours/ week• One player per instructor• $150 marginal cost per Wristop•One hour training for each instructor
Location # Academies Potential Players exposed
California 10 20,000 Florida 10 20,000 Phoenix 6 12,000 Las Vegas 7 14,000 Texas 5 10,000
76,000
CommunityDeeper
understandingInstant
satisfactionProducts
Aiming to affect the instant satisfaction phase
G9 TRAINING AID PROGRAM: A GOOD FIT WITH CURRENT PRODUCT STRATEGYG9 TRAINING AID PROGRAM: A GOOD FIT WITH CURRENT PRODUCT STRATEGY
G9 TRAINING AID PROGRAM: STAGED ROLL OUTG9 TRAINING AID PROGRAM: STAGED ROLL OUT
3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004
Phase 1 California
FloridaPhoenixLas Vegas Texas
Phase 3 Rest US
Phase 2
• Pilot Test in Carlsbad – Learn and build success stories• Roll out if successful in California
• Roll out to the most prestigious schools in the US• Create Suunto Certificate program for schools
M9 TRAINING AID PROGRAM: “SMART SAILING” OVERVIEWM9 TRAINING AID PROGRAM: “SMART SAILING” OVERVIEW
Target: Sailing instructors of well known Sailing Academies in the US., specifically US Sailing Certificate Schools
Objective: create advocates that will spread the word by demonstrating the benefits of the product
Rationale: • The rationale suggested for the introduction of the G9 Training Program apply in this case. Again, in order to capture Sailing schools as marketing media or tool for Suunto, a benefit for the Academy must exist. The top 50 Sailing Schools of the U.S. is provided in the next slide, the idea would be to sell them the M9 at a discount to help them improve their teaching techniques• The benefit, again, is clear for the academies - M9 is a “trainer aid device” that will improve their customers’ skills and thus the name of the School• 15 out of top 50 are in California, facilitating the launch and control of this initiative
Implementation:• Staged roll – out: start in California, try the concept, built strong relationship with your users, create success stories and move to the next state if the results are favorable• Selection criteria for the Sailing schools should include: prestige, location, US Sailing Certification • Again the idea of a Suunto Certification for instructors is a good idea to build the “desirable” image around the product
Expected Cost/Benefit: approximately $47K to reach roughly 20k sailors/year
M9 TRAINING AID PROGRAM: TARGET SAILING ACADEMIES M9 TRAINING AID PROGRAM: TARGET SAILING ACADEMIES
School Name State
Piers Park Sailing Center MA
Boston Sailing Center MA
J World Annapolis MD
Annapolis Sailing School MD
Onboard Sailing School MN
Offshore Sailing School NY
Offshore Sailing School NY
New York Sailing Center and Yacht Club NY
Oyster Bay Sailing School NY
Rochester Yacht Club NY
Harbor North Sailing School OH
Thunderbird Sailing Club OK
J World Sailing Schools RI
Ocean Sailing Academy SC
Concord Yacht Club TN
Offshore Sailing School BVI
Offshore Sailing School BVI
Magellan Sailing Center, Inc TX
At The Helm Sailing School TX
Texas Sailing Academy TX
Vashaw Ent, Inc/Washington Sailing School VA
Premier Sailing School VA
Jones Maritime Co VI
Starpath School of Navigation WA
Wind Works Sailing Center, Inc NW
Milwaukee Community Sailing Center WI
School Name State
Club Nautique CA
US Sailing Center - Long Beach California CA
Del Mar Marina and Sailing Center CA
J World San Diego CA
San Diego Sailing Academy CA
Mission Bay Aquatic Center CA
Orange Coast College CA
Scenic Bay Sailing School & Charters CA
Club Nautique CA
J World San Francisco CA
Club Nautique CA
California Maritime Academy Sailing Program CA
OCSC-San Francisco Bay Sailing School CA
Cass' Sailing School & Charters CA
Club Nautique CA
Southern Sailing Academy, Inc FL
J World FL
Florida Keys Sailing, Inc FL
Offshore Sailing School FL
Shake-A-Leg Miami FL
Castle Harbor Sailing School FL
Annapolis Sailing School FL
Offshore Sailing School FL
Offshore Sailing School FL
Actionquest/Sea-Mester FL
Lake Forest Sailing IL
Chicago Sailing Club IL
US Sailing Association
M9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSISM9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS
# Teachers/school 5session/week 3week/yr 40Hour training the professors 5Wristop marginal cost per unit 150Training Costs per hour 40POP+Brochures+ placement per School 400
Assumptions
Location Wristop TrainingPOP+Brochures+
placementTotal Costs
California 11250 3750 6000 21,000 Florida 9000 3000 4800 16,800 NY 3000 1250 2000 6,250 Texas 900 750 1200 2,850
46,900
Assumptions:• Five Instructors per school•Five M9 per school• Teaching 3 sessions/ week•$150 marginal cost of a Wristop•One Hour training for each instructor
Location # Academies Potential sailors exposed
California 15 9,000 Florida 12 7,200 NY 5 2,400 Texas 3 720
19,320
3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004
Phase 1 California
FLNYTX
Phase 3 Rest US
Phase 2
M9 TRAINING AID PROGRAM: STAGED ROLL OUTM9 TRAINING AID PROGRAM: STAGED ROLL OUT
• Pilot Test in California – Learn and build success stories• Roll out to to FL if successful experience
• Roll out to the ,most prestigious schools in FL, take advantage of the geographic concentration of the schools
S6 DEMO PROGRAM: ”TRY ME” OVERVIEWS6 DEMO PROGRAM: ”TRY ME” OVERVIEW
Target: Skiers at intermediate and advanced levels of expertise of well known resorts
Objective: attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides
Rationale: • In snow sports, it is easier to provide the instant satisfaction of Suunto’s products by showing on a few rides how the wristop computer can help you to improve your performance by illustrating the speed and altitude of the skier• The best ski resorts are geographically concentrated, facilitating the launching process and logistics• Demo concept strongly accepted in snow sports• The skiers are “gadget” oriented consumers - they love to ski with latest technology in skis, jackets, Camelbaks and some of them even MP3 players• To complement this initiative, some merchandising like t-shirts or caps should be included; Suunto must look for vehicles to overcome the stage where the brand is just on the wrist
Implementation:• Plan “try me” sessions per state, starting with the most visited ski resorts in the U.S.• Selection criteria for the ski resorts should include: volume of visitors, location, percentage of intermediate and advance trails (this way there is more probability of hitting our target market)• Given the limited resources in terms of human labor in the U.S., probably the right way to start is by hiring an outsourcing company. If the program works, future in-house could be considered
Expected Cost/Benefit : US$35K to show the benefits of the instant satisfaction of Suunto’s wristop computers to approximately 11.5k potential users. This figure is just skiers trying out the product; if we consider that this skier can talk to at least one more person (conservative), the experience would spread out to more than 23k skiers (in depth)
S6 DEMO PROGRAM: TARGET RESORTS SORTED BY SKI EXPERTISE LEVEL AND STATES6 DEMO PROGRAM: TARGET RESORTS SORTED BY SKI EXPERTISE LEVEL AND STATE
Ranking + Resort Beginner Intermediate Advance State45. Lodge & Spa at Breckenridge 15% 28% 57% Col41. Sheraton Crested Butte Resort 14% 32% 54% Col3. Lodge & Spa at Cordillera 18% 29% 53% Col4. Vail Cascade Resort & Spa 18% 29% 53% Col5. Lodge at Vail 18% 29% 53% Col6. Sonnenalp Resort of Vail 18% 29% 53% Col23. Vail Marriott Mountain Resort 18% 29% 53% Col9. St. Regis 0% 48% 52% Col15. Little Nell 0% 48% 52% Col18. Hotel Jerome 0% 48% 52% Col10. Wyndham Peaks Resort 24% 38% 38% Col20. Ice House Lodge 24% 38% 38% Col28. Silvertree Hotel 7% 55% 38% Col47. Stonebridge Inn 7% 55% 38% Col7. Park Hyatt Beaver Creek Resort 34% 29% 37% Col33. Steamboat Grand Resort Hotel 13% 56% 31% Col43. Torian Plum 13% 56% 31% Col46. Sheraton Steamboat Resort 13% 56% 31% Col21. Charter at Beaver Creek 34% 39% 27% Col34. Beaver Creek Lodge 34% 39% 27% Col17. Delta Whistler Resort 20% 55% 25% Col16. Snowmass Club 7% 55% 38% Vancouver1. Westin Resort & Spa 20% 55% 25% Vancouver2. Fairmont Chateau Whistler 20% 55% 25% Vancouver8. Pan Pacific Lodge 20% 55% 25% Vancouver13. Summit Lodge 20% 55% 25% Vancouver
Ranking + Resort Beginner Intermediate Advance State36. Fairmont Chateau Lake Louise 25% 45% 30% Alberta40. Post Hotel 25% 45% 30% Alberta38. Embassy Suites Hotel 20% 45% 35% Cal50. Harvey's Resort & Casino 20% 45% 35% Cal26. Resort at Squaw Creek 25% 45% 30% Cal49. Plumpjack Squaw Valley Inn 25% 45% 30% Cal12. Knob Hill Inn 36% 42% 22% Idaho19. Sun Valley Lodge 36% 42% 22% Idaho35. Summit at Big Sky 17% 25% 58% Montreal29. Taos Inn 24% 25% 51% NM37. Mirror Lake Inn 20% 36% 44% NY14. Sunriver Resort 15% 25% 60% Oregon32. Fairmont Tremblant 17% 33% 50% Quebec39. Fairmont Le Chateau Frontenac 25% 41% 34% Quebec48. Cliff Lodge 25% 30% 45% Utah31. The Homestead 18% 44% 38% Utah42. Lodge at the Mountain Village 18% 44% 38% Utah11. Stein Eriksen Lodge 15% 50% 35% Utah22. Lodges at Deer Valley 15% 50% 35% Utah25. Alta Lodge 25% 40% 35% Utah30. Goldener Hirsch Inn 15% 50% 35% Utah24. Spring Creek Ranch 10% 40% 50% Wyoming27. Amangani Resort 10% 40% 50% Wyoming44. Alpenhof Lodge 10% 40% 50% Wyoming
S6 DEMO PROGRAM: RELEVANT SNOW SPORTS DEMOGRAPHICSS6 DEMO PROGRAM: RELEVANT SNOW SPORTS DEMOGRAPHICS
Source: National Sporting Goods Association, 2001 Sports Participation Study
Ages per Discipline
8%18%
10% 9%
19%
31%
8% 8%
15%
26%
15%6%
21%
15%
15%24%
20%
5%
24% 20%
12%3%
17%17%
4% 2%7% 13%
Alpine Snowboard Cross Country Snowshoe*
7-11 12-23 18-24 25-34 35-44 45-54 55-64 65-74 75+
Skiers Gender per Discipline
60.20%72.40%
50.00%59.20%
39.80%27.60%
50.00%40.80%
Alpine Snowboard Cross Country Snowshoe*
Male Female
Total Number of U.S. Snow Sports Visits (In Millions)
12.1
18.1
75
12.2
Northeast Southeast Midwest Rockies Pacific
Consumer Spending
$663 Millions
$787 Millions
$663 Millions
Apparel Equipment Accessories
S6 DEMO PROGRAM: INITIAL COST/ BENEFIT ANALYSISS6 DEMO PROGRAM: INITIAL COST/ BENEFIT ANALYSIS
Time with Skier MinSet up (sign up + quick training) 10Ski ride time (hrs) 20
Total trial time 30
Wristops per mountain (# units) 10 Hrs/day 8 Ski rides/day 16 days/week 2 Potential skiers experiences/ weekend 320 # Simultaneous programs/weekend 3 Total weekends/year 12
Total skiers experiences 11,520
Assumptions + Calculations
Costs Units Cycle TotalMarginal Costs per wristop 100 30 1 3,000 Booth Rental 500 3 12 18,000 POP 200 3 12 7,200 Other 100 3 24 7,200
Total Cost per season 35,400
BILLBOARD ADVERTISEMENT: OVERVIEWBILLBOARD ADVERTISEMENT: OVERVIEW
Target: Top ski resorts in North America and top national parks in US
Objective: To increase brand awareness among target consumers
Rationale: • Outdoor ads located on highways to ski resorts and national parks can significantly increase brand awareness of snow sports and X-sports products• Billboards are more effective to reach target consumers than magazine ads
-Only small fraction of skiers or X-sports players regularly read related magazines
Implementation:• Target top ski resorts and national parks
- E.g., Whistler/Blackcomb, Alta/Snowbird, Jackson Hole, Squaw Valley, and Mammoth (ski resorts)- E.g., Great Smoky Mountains, Grand Canyon, Olympic, Yosemite, and Rocky Mountains (national parks)
• Focus on brand/image, rather than product information- Detailed information can be provided in the company web site (Suunto.com/Suuntosports.com)
• Need to be combined with other communication initiatives to maximize synergies- E.g., billboards in ski resorts + ski instructors deal + trial/demo in ski slopes
• Consistent follow-ups critical
Expected Cost/Benefit:• Assumption: 3 billboards in Whistler/Blackcomb(ski resort)/Great Smoky(park)/Olympic (park+snow), monthly charge $3K, 1 billboard per site• Expected reach to target consumers: 3.4 million per year (22% (2) of total 15 million recreational visitors)• Expected monthly expense ~$9K, yearly expense ~$110K
(1) Based on company data (Suunto US); (2) portion of core consumers for X-sport/snow product in US (company data)Note: Further cost/benefit study requiredSource: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis
BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKSBILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS
(1) Estimated annual visitors 2.2MSource: Skiing Magazine (2002)
Top 25 Ski Resorts in North AmericaTop 25 Ski Resorts in North AmericaRank Resort State
1 Whistler Blackcomb BC2 Alta/Snowbird UT3 Jackson Hole WY4 Squaw Valley CA5 Mammoth CA6 Vail CO7 Aspen/Aspen Highlands CO8 Big Sky MT9 Aleyeska AK
10 Fernie, BC11 Steamboat CO12 Heavenly CA13 Telluride CO14 Kirkwood CA15 Snowbasin UT16 Big Mountain MT17 Park City UT18 The Canyons UT19 Beaver Creek CO20 Sunshine Village AB21 Lake Louise AB22 Taos NM23 Crested Butte CO24 Kicking Horse BC25 Crystal WA
(1)
Rank National Parks Recreational Visitors (2002)
Location
1 GREAT SMOKY MOUNTAINS NP 9,316,420 Tennessee and North Carolina2 GRAND CANYON NP 4,001,974 Grand Canyon, AZ3 OLYMPIC NP 3,691,310 Port Angeles, WA4 YOSEMITE NP 3,361,867 Yosemite National Park, CA 953895 ROCKY MOUNTAIN NP 2,988,475 Estes Park and Grand Lake, CO6 YELLOWSTONE NP 2,973,677 ID,MT,WY7 GRAND TETON NP 2,612,629 Moose, WY8 ZION NP 2,592,545 Springdale, UT9 ACADIA NP 2,558,572 Bar Harbor, ME
10 GLACIER NP 1,905,689 Northwest Montana11 MAMMOTH CAVE NP 1,891,307 Mammoth Cave, KY12 HOT SPRINGS NP 1,440,227 Hot Springs, AR13 SHENANDOAH NP 1,389,244 Blue Ridge Mountains near Luray, VA14 MOUNT RAINIER NP 1,310,390 Ashford, WA15 HALEAKALA NP 1,260,601 Kula, Maui, HI16 JOSHUA TREE NP 1,178,376 Twentynine Palms, CA17 HAWAII VOLCANOES NP 1,110,998 Hilo, HI18 EVERGLADES NP 968,909 Miami, Naples, and Homestead, FL19 SEQUOIA NP 920,292 Sierra Nevada near Three Rivers, CA20 BADLANDS NP 908,898 southwestern, SD21 DEATH VALLEY NP 897,596 Death Valley, CA22 BRYCE CANYON NP 886,436 Bryce Canyon, UT23 WIND CAVE NP 810,298 Hot Springs, SD24 ARCHES NP 769,672 Moab, UT25 PETRIFIED FOREST NP 571,586 Petrified Forest National Park, AZ
Source: National Park Service
Top 25 National Parks in USTop 25 National Parks in US
BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS CONT.BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS CONT.
BILLBOARD ADVERTISEMENT: INITIAL COST/ BENEFIT ANALYSISBILLBOARD ADVERTISEMENT: INITIAL COST/ BENEFIT ANALYSIS
SiteMonthly
Billboard Cost #
billboards Monthly Cost Yearly cost
RecreationalVisitors (Year)
EstimatedTarget Reach
Whister/Blackcomb 3,000 1 3,000 36,000 2,200,000 493,274 Great Smokie Mts. N.P. 3,000 1 3,000 36,000 9,316,420 2,088,883 Olympic N.P. 3,000 1 3,000 36,000 3,577,007 802,020 Total 9,000 108,000 15,093,427 3,384,176
Assumptions• 3 target areas: Whistler/Blackcomb (X-sport/Snow), Great Smoky Mountains N.P. (X-sport), and Olympic N.P. (X-sport/Snow)• 1 billboards ads based on 12 month contract• Monthly cost of billboards ads $3,000• Expected target reach = total number of recreational visitors x target ratio (22%)
Source: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis
WEB ADS: OVERVIEWWEB ADS: OVERVIEW
Target: Top sport-related media/portal and community sites
Objective: To increase brand awareness among target consumers
Rationale: • Suunto’s target consumers are technology and internet-savvy• Web ads can generate traffics to Suunto sites, Suunto.com/SuuntoSports.com
Implementation:• Prioritize target web sites: focus on visitor fit (Suunto’s target consumers) and traffic (number of visits/page view, etc)
- Sport portal/media sites and Sport segment specific sites are first priorities- Computer/technology sites and travel info/tool sites are second priorities- General portal/news and other high-traffic sites are less effective for target web ads
- Generate forwarding traffic from web ads to Suunto’s web sites- Monitor click-through rate and evaluate advertisement effectiveness- Need to be connected to other marketing campaigns (e.g., user events, special offer, etc)
Expected Cost/Benefit:• Assumption: 1 banner ad per each target category (sport portal/media (1), sport segment specific (4), computer/tech (1), and travel (1)), cost $20 per thousand banner impression (reach)• ~$17K per month or ~$200K per year for 7 target sites, expected reach ~200K target consumers per month
Note: further cost/benefit study requiredSource: TrafficRanking.com, Alexa.com, Team Analysis
WEB ADS: TOP GENERAL SPORT PORTAL/ MEDIA SITESWEB ADS: TOP GENERAL SPORT PORTAL/ MEDIA SITES
Top 20 Sport Portal/ News /Media SitesTop 20 Sport Portal/ News /Media SitesNo Rank Domain Visits Page
Views Links
1 849 theinsiders.com 8,165 23,366 86,1932 1,594 rivals.com 6,828 29,025 200,5903 3,105 sportsnetwork.com 5,915 18,235 118,4854 10,794 ctvsportsnet.com 5,106 9,614 6,2585 10,868 espn.com 5,103 10,034 394,0886 11,107 allsports.com 5,096 9,506 48,0617 12,428 sportsfeed.com 5,057 9,145 5,6738 31,734 cnnsi.com 4,858 8,928 284,9489 35,400 sportserver.com 4,844 8,988 70,673
10 42,606 sports.com 4,826 8,757 92,20111 106,915 sports-central.org 4,774 8,722 19,02412 123,965 doitsports.com 4,770 8,687 20,35913 126,985 netsports.com 4,770 8,669 014 131,228 sportscribe.com 4,767 8,907 4,50515 170,132 armchairqb.com 4,763 8,683 016 177,698 psx.com 4,763 8,666 6817 218,205 iis-sports.com 4,760 8,669 13,35018 351,469 cbssportsline.com 4,756 8,645 18,10619 408,780 cswstats.com 4,753 8,690 020 496,485 sportsfilter.com 4,753 8,655 0
(1) Rated by TrafficRanking.com; sports.yahoo, sportingnews.com, sportinglife.com, and foxsports.lycos.com are excluded but ranked high by Alexa.com; (2) A trip to a site by an individual (not unique) staying more than 20 min; (3) Refers to No. of pages served; (4) HTML links on other web sites that lead to the siteNote: Figure is based on around 30,000 sample surfers selected by TrackRanking.com Source: TrafficRanking.com (6.2003), Alexa.com (6.2003), Team Analysis
(1) (2) (3) (4)
WEB ADS: TOP SPECIALIZED SPORT SITES DEDICATED TO SUUNTO’S TARGET SPORT WEB ADS: TOP SPECIALIZED SPORT SITES DEDICATED TO SUUNTO’S TARGET SPORT SEGMENTSSEGMENTS
Note: surveyed web sites include portal, news/magazine, and organization sites for each sport segmentNote: Figure is based on around 30,000 sample surfers selected by TrackRanking.com Source: TrafficRanking.com(6.2003), Team Analysis
No Rank Domain Visits PageViews
Links
1 4,053 active.com 5,656 18,658 184,9032 15,593 gorp.com 4,991 9,604 330,0063 40,514 wildernet.com 4,830 8,928 21,1104 46,266 publicbookshelf.com 4,819 8,725 3,2545 47,610 outdoorreview.com 4,816 8,851 143,0166 57,267 backpacker.com 4,802 8,858 22,2787 79,212 peakware.com 4,784 8,788 23,6978 126,860 outsidemag.com 4,770 8,669 212,6899 168,347 progressivefarmer.com 4,763 8,690 6,024
10 178,310 thebackpacker.com 4,763 8,662 10,596
No Rank Domain Visits PageViews
Links
1 46,925 boattest.com 4,816 9,114 9,9292 55,601 marinersguide.com 4,805 8,715 10,5963 99,616 forsailbyowner.com 4,777 8,673 04 179,549 latitude38.com 4,763 8,662 05 334,250 schoonerman.com 4,756 8,648 19,5256 422,244 boatingamerica.com 4,753 8,676 3287 708,539 bwsailing.com 4,753 8,641 08 829,949 sailing.com 4,753 8,641 0
No Rank Domain Visits PageViews
Links
1 20,491 golf.com 4,928 9,247 60,0772 35,953 golfdigest.com 4,840 11,035 29,7043 43,210 worldgolf.com 4,823 9,149 50,1474 43,701 golfreview.com 4,823 8,897 141,0975 79,807 freegolfinfo.com 4,784 8,760 8,0936 173,209 ifyougolf.com 4,763 8,673 14,9357 212,746 golf101.com 4,760 8,676 4868 241,159 segetaway.com 4,760 8,648 5479 339,904 egolfweekly.com 4,756 8,648 0
10 395,739 st-duffer.com 4,753 8,718 0
X-sportsX-sports Snow SportsSnow Sports
GolfGolf MarineMarine
Top 10 Segment-specific Sport SitesTop 10 Segment-specific Sport Sites
No Rank Domain Visits PageViews
Links
1 51,125 goski.com 4,809 9,142 42,0532 65,497 onthesnow.com 4,795 8,739 13,2673 87,389 ski.com 4,781 8,732 32,5414 122,977 skinet.com 4,770 8,694 05 131,869 myskitrip.com 4,767 8,862 06 145,974 skitown.com 4,767 8,673 38,5347 222,951 skimag.com 4,760 8,662 188 294,911 skiingmag.com 4,756 8,666 09 322,076 freezeonline.com 4,756 8,652 5
10 374,259 epicski.com 4,756 8,645 0
WEB ADS: INITIAL COST-BENEFIT ANALYSIS WEB ADS: INITIAL COST-BENEFIT ANALYSIS
Assumptions• 7 target sites: sport portal/media (1), sport segment specific (4), computer/tech (1), and travel (1))• 1 banner ads per site• Cost per thousand banner impressions: $10• Banner impression = number of visits• Internet users in US: 167million• Internet users between 25 and 49 years old: 52% of total Internet users• Expected target reach ratio: 22%
Source: Alexa.com, TrafficRanking.com, Internet Search, Team Analysis
Category Site
Daily reachper million
(3 mo.avg.)
% reach
Estimatednumber ofvisits per
month (US,million)
Internetusers
between 25-49 (US,million)
Targetreach
(millon)
Monthlycost (USD)
Yearly cost(USD)
Sport-general theinsiders.com 530 0.1% 0.09 0.05 0.01 885 10,621Sport-spec-outdoor active.com 126 0.0% 0.02 0.01 0.00 210 2,515Sport-spec-ski goski.com 12 0.0% 0.00 0.00 0.00 20 240Sport-spec-sailing boattest.com 42 0.0% 0.01 0.00 0.00 69 832Sport-spec-golf golf.com 102 0.0% 0.02 0.01 0.00 170 2,044Computer/Tech zdnet.com 2,080 0.2% 0.35 0.18 0.04 3,474 41,683Travel mapquest.com 7,250 0.7% 1.21 0.63 0.14 12,108 145,290Total 0.88 0.194 16,935 203,226
WEB ADS: FOCUS ON MAJOR SPORTS-RELATED SITES AND TECHNOLOGY/ TRAVEL SITES, WEB ADS: FOCUS ON MAJOR SPORTS-RELATED SITES AND TECHNOLOGY/ TRAVEL SITES, WHERE TARGET CONSUMERS AND HIGH TRAFFIC EXISTWHERE TARGET CONSUMERS AND HIGH TRAFFIC EXIST
Prioritization of Web Site Categories
• General portal/directory•General news/media• Shopping /auction
Tra
ffic
Consumer Target
Sport-enthusiastGeneral
High
LowPriority sites
•Travel sites • Sport portal/ news/media sites
• Other category-specific sites(1)
• Computer/tech sites
• Segment-specific sport sites
• Sport user group/club sites
(1) Entertainment, art, health care, business/economy, science, etc.Source: Team Analysis
Allow users to try out a product for limited time. Quick-user guide showing how to use basic functions.
Nurture community develop-ment through periodic communication with end-users
Opportunity for Suunto advocates to share experiences with others. A PC may be placed for on-hand demonstration.
IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM HAS THE POTENTIAL TO TAKE IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM HAS THE POTENTIAL TO TAKE THE WHISTLER/BLACKCOMB PARTNERSHIP FURTHERTHE WHISTLER/BLACKCOMB PARTNERSHIP FURTHER
Advocate Outreach User Acquisition Post-Purchase
Strategic Partnershipi.e. Whistler
Suunto Booth on site
S6 Demo Program
Special discounts for lesson
participants
Giveaway program to instructors
Work with instructors to incorporate WTC to improve game. Encourage them to post measurable results on Suuntosports. com
Lessons utilizing WTC as performance
enhancement tool
Communication of upcoming events
through newsletters
Encourage users to post “success stories” through giveaways
Suuntosports.com
Warranty Registration on Suunto.com
Purchase decision
KEY MILESTONES FOR RECOMMENDED ACTION ITEMSKEY MILESTONES FOR RECOMMENDED ACTION ITEMS
Action Items 3Q 2003 4Q 2003 1Q 2004 2Q 2004
Marketing Information Management
Marketing HR Improvement
Billboards Ads
Web Ads
Start w/ launch of N-Series
Start w/ launch of new X-sport/Snow product
Requirement study/design finish Develop. finishSystem
Open
Task force formed Plan finished New process launch Interim review
Marketing Process Realignment
Central board formed
Plan finished
Effectiveness evaluation
G9 Training Aid Program
Pilot in California
Interim reviewNew process launch
Replicate to FL, PX, LA, TX Replicate to the rest of US
M9 Training Aid Program
Pilot in California Replicate to FL, NY, TX Replicate to the rest of US
S6/X6 Try-Me Program
Pilot in California Replicate to the rest of US
Start planning
Start planning
Com
mun
icat
ion
Mar
ketin
g in
fras
truc
ture
FUTURE CONSIDERATIONSFUTURE CONSIDERATIONS
SO FAR, WE HAVE EXPLORED THE OPPORTUNITY SUUNTO HAS IN THE SHORT TERM TO SO FAR, WE HAVE EXPLORED THE OPPORTUNITY SUUNTO HAS IN THE SHORT TERM TO IMPROVE THE COMPANY’S POSITIONING IN THE U.S. MARKET BY STRENGHTENING THEIR IMPROVE THE COMPANY’S POSITIONING IN THE U.S. MARKET BY STRENGHTENING THEIR DISTRBUTION STRATEGY AND BRAND AWARENESS IN ORDER TO INCREASE PENETRATION DISTRBUTION STRATEGY AND BRAND AWARENESS IN ORDER TO INCREASE PENETRATION AMONG THE EXISTING TARGET SPORT SEGMENTS AMONG THE EXISTING TARGET SPORT SEGMENTS
# Customers
New
Pro
duct
Dev
elop
men
t
Current penetration
Increase penetration within current niche
Short Term Goals Long Term Goals
Goal: dominate sport enthusiasts niche• Increase quality of distribution channels
(search for value added service channels)• Emphasize product placement/ merchandising• Increase communication effectiveness and
strengthen brand awareness
IN THE LONG TERM, THE COMPANY COULD PENETRATE DIFFERENT MARKETS, WHICH MEANS IN THE LONG TERM, THE COMPANY COULD PENETRATE DIFFERENT MARKETS, WHICH MEANS EXPANDING TARGET CUSTOMER SEGMENTS AND OFFERING A NEW VALUE PROPOSITIONEXPANDING TARGET CUSTOMER SEGMENTS AND OFFERING A NEW VALUE PROPOSITION
# Customers
New
Pro
duct
Dev
elop
men
t
Current penetration
Increase penetration within current niche
Explore different niches
Penetrate different niches, introduce different products
Short Term Goals Long Term Goals
Goal: Create product innovator brand • Modify some products to go after additional sport users and
explore some other market niches• Attack mass sport segment (not just sport enthusiasts)• Perform minor product development to simplify• Increase presence in general sports retailers• Continue to strengthen Suunto brand awareness
Goal: Diversification to increase revenues • Leverage Suunto brand to explore new products (sports apparel)• Increase presence in additional distribution channels• Explore self owned Suunto stores or franchises
APPENDIXAPPENDIX
APPENDIX:APPENDIX:Distribution Matrix Definitions of Key Distribution Matrix Definitions of Key
Functions/ Characteristics Functions/ Characteristics
DEFINITIONS OF KEY FUNCTIONS AND CHARACTERISTICS RELEVANT TO DISTRIBUTION OF DEFINITIONS OF KEY FUNCTIONS AND CHARACTERISTICS RELEVANT TO DISTRIBUTION OF SUUNTO PRODUCTSSUUNTO PRODUCTS
Functions/ Characteristics
Match to Customer Target Retailers reflect target consumer profile of active participant/ sports enthusiast
Accessibility to Customer Target Stores are located in convenient, visible locations
Complementary Brand Image Status as premier quality retailer within category to reflect Suunto positioning as “mostdesired”
Image Fit - Sport Equipment Concept Reflects Suunto branding for the “active participant” and “sports enthusiast” consumer
Image Fit - Computer Concept Reflects Suunto branding as a “sport computer”Sport Knowledge of Sales Staff Staff identify with application of product to specific sports and able to emphasize
“performance measurement” benefitsTech Knowledge of Sales Staff Staff experienced and competent explaining technical functions of product
Customer Service Service is efficient and high quality
Market Research/ Feedback Potential Retailer relationships can provide insight into market trends and product perceptions oftarget consumer profile group
Prominence of Product Placement Verticals will be used and products will receive premier positioning in store
Potential to Carry Full Product Line Appropriateness for multiple sport lines in store
Scalability for Future Product Lines New sport lines or technologies can be introduced to store
Prim
ary
Seco
ndar
y
APPENDIX:APPENDIX:Sporting Goods Business’ Top 100 Sporting Goods Retailers Sporting Goods Business’ Top 100 Sporting Goods Retailers
SBG’s TOP 100 SPORTING GOODS RETAILERSSBG’s TOP 100 SPORTING GOODS RETAILERS
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
RevenuesDistributors Channel Type Rank (2001, in millions) StoresFoot Locker Footwear & Apparel 1 1,800 1,472 Sports Authority General Sports 2 1,400 198 L.L. Bean Specialty Sports - Outdoor 3 1,140 3 (12 outlet)Dicks Sporting Goods General Sports 4 1,050 125 Famous Footwear Footwear & Apparel 5 1,044 920 Cabelas Specialty Sports - Outdoor 6 875 7 Bass Pro Shops Specialty Sports - Hunting/Fishing 7 850 14 Champs Sports General Sports 8 800 574 Nike Manufacturer Owned 8 800 13 Academy Sports and Outdoors General Sports 10 775 60 REI Specialty Sports - Outdoor 11 740 61 The Finish Line Footwear & Apparel 12 701 449 Pacific Sunwear Footwear & Apparel 13 685 718 Big 5 General Sports 14 663 252 Footaction Footwear & Apparel 15 550 494 Galyan's Trading Co General Sports 16 483 26 Shoe Carnival Footwear & Apparel 17 477 183 Modell's General Sports 18 460 90 Just Four Feet Footwear & Apparel 19 450 88 Lady Foot Locker Footwear & Apparel 20 425 632 Journeys Footwear & Apparel 21 382 533 Sportmart General Sports 22 370 72 Gart General Sports 23 310 62 Play It Again Sports Footwear & Apparel 24 259 502 Orvis Specialty Sports - Outdoor 25 230 26
SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
RevenuesDistributors Channel Type Rank (2001, in millions) StoresOshman's General Sports 26 256 45 Athletes Foot Footwear & Apparel 27 250 400 Eastbay General Sports 27 250 1 Gander Mountain Specialty Sports - Outdoor 27 250 55 Scheel's All Sports General Sports 27 250 20 Dunhams General Sports 31 245 116 Hibbett Sporting Goods General Sports 32 241 329 Reebok Manufacturer Owned 33 230 213 Sports Chalet General Sports 33 230 26 Golfsmith Specialty Sports - Golf 35 220 26 Pro Golf of America Specialty Sports - Golf Discount 35 220 145 Kids Foot Locker Footwear & Apparel 37 215 391 Bob's Stores Footwear & Apparel 38 210 34 MC Sporting Goods General Sports 38 210 70 Timberland Footwear & Apparel 40 204 23 (50 outlet)Edwin Watts Golf Shops Specialty Sports - Golf 41 200 49 Eastern Mountain Sports Specialty Sports - Outdoor 42 180 86 The Sportsman's Guide Specialty Sports - Outdoor 43 169 1 Performance Inc. Specialty Sports - Bike 44 150 47 G.I. Joes General Sports 45 135 18 Sketchers USA Manufacturer Owned 46 120 83 Hat World Footwear & Apparel 47 118 418 The Sportsman's Warehouse Specialty Sports - Outdoor 48 110 8 Vans Manufacturer Owned 49 103 160 GSI Commerce Other 50 103 n/a
SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
RevenuesDistributors Channel Type Rank (2001, in millions) StoresOlympia Sports General Sports 51 102 84 Omni Fitness Specialty Sports - Equipment 52 100 65 The Walking Company Footwear & Apparel 52 100 97 Decathlon General Sports 54 95 21 Copeland Sports General Sports 55 90 37 Shoe Pavilion Footwear & Apparel 56 88 80 Campmor Specialty Sports - Outdoor 57 85 1 Jimmy Jazz Footwear & Apparel 57 85 35 Overtons Specialty Sports - Marine 57 85 3 Road Runner Sports Specialty Sports - Running 57 85 1 Dr. Jays Footwear & Apparel 61 80 17 Golf USA Specialty Sports - Golf Discount 61 80 89 Chicks Sporting Goods General Sports 63 78 9 Worldwide Golf Enterprises Specialty Sports - Golf Discount 64 75 35 Adidas America Manufacturer Owned 65 60 3 (43 outlet)Las Vegas Golf & Tennis Specialty Sports - Golf 65 60 25 Sports Endeavors Specialty Sports - Soccer 67 55 - Paragon Sports General Sports 68 52 1 Gym Source Specialty Sports - Equipment 69 50 22 Quicksilver Manufacturer Owned 70 47 28 International Golf Discount Specialty Sports - Golf Discount 71 45 48 Just Sports Footwear & Apparel 71 45 91 Ron Jon Surf Shop Specialty Sports - Other 71 45 4 Christy Sports Specialty Sports - Outdoor 74 43 36 Kittery Trading Post Specialty Sports - Outdoor 75 42 1
SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
RevenuesDistributors Channel Type Rank (2001, in millions) StoresThe Pro Image Footwear & Apparel 76 40 80 Anaconda Sports General Sports 77 35 2 Martin's Golf & Tennis Specialty Sports - Golf 78 35 3 Popular Outdoor Outfitters Specialty Sports - Outdoor 78 35 23 Ski Market Specialty Sports - Outdoor 78 35 24 Tri-City Sporting Goods General Sports 78 35 1 Shoe City Footwear & Apparel 82 33 27 Special Tee Golf & Tennis Specialty Sports - Golf 83 31 18 Peter Glenn Specialty Sports - Outdoor 84 30 21 Turner's Outdoorsman Specialty Sports - Hunting/Fishing 84 30 13 Paradies/ PGA Tour Shops Specialty Sports - Golf 86 28 36 Fleet Feet Footwear & Apparel 87 28 38 City Sports General Sports 88 27 9 Bob Wards and Sons Specialty Sports - Outdoor 89 25 5 Golfers' Warehouse Specialty Sports - Golf Discount 90 24 5 Johnny Mac's Sporting Goods General Sports 91 22 4 Boyne Country Sports Specialty Sports - Outdoor 92 21 27 Fanbuzz.com Team Sports Apparel 93 20 - Kessler's Team Sports Team Sports Apparel 93 20 5 Schuylkill Valley Sports Team Sports Apparel 95 19 14 Bike Line Specialty Sports - Bike 96 18 22 Blades, Board, and Skate Specialty Sports - Outdoor 96 18 14 Dixie Sporting Goods General Sports 96 18 5 Fitness Holdings International Specialty Sports - Equipment 99 17 14 Push Pedal Pull Specialty Sports - Equipment 100 15 12
APPENDIX:APPENDIX:Top 100 Golf Courses in the USA Top 100 Golf Courses in the USA
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPSTHE G9 IN PRO SHOPS
2001 1999Rank Rank
1 1 Pine Valley Clementon, N.J. Crump/Colt, 1918 2 2 Cypress Point Pebble Beach, Calif. Mackenzie, 1929 3 3 Pebble Beach Pebble Beach, Calif. Neville/Grant, 1919; Egan 4 4 Augusta National Augusta, Ga. Mackenzie/Bobby Jones, 1932 5 5 Shinnecock Hills Southampton, N.Y. Toomey/Flynn, 1931 6 6 Pinehurst (No. 2) Pinehurst, N.C. D. Ross, 1903-35 7 8 Sand Hills Mullen, Neb. Coore/Crenshaw, 1995 8 7 Merion (East) Ardmore, Pa. H. Wilson, 1911 9 9 Oakmont Oakmont, Pa. Fownes, 1903
10 10 Seminole North Palm Beach, Fla. D. Ross, 1929; D. Wilson 11 12 Winged Foot (West) Mamaroneck, N.Y. Tillinghast, 1923 12 14 San Francisco San Francisco, Calif. Tillinghast, 1915 13 15 Prairie Dunes Hutchinson, Kan. Maxwell, 1935-56 14 13 National GL of America Southampton, N.Y. Macdonald, 1911 15 11 Crystal Downs Frankfort, Mich. Mackenzie/Maxwell, 1929 16 16 Oakland Hills (South) Birmingham, Mich. D. Ross, 1917; R. T. Jones Sr. 17 - Pacific Dunes Bandon, Ore. Doak, 2001 18 23 Fishers Island Fishers Island, N.Y. Raynor, 1917 19 20 Chicago GC Wheaton, Ill. Macdonald, 1895; Raynor 20 17 Olympic (Lake) San Francisco, Calif. Reid, 1917; Whiting, R. T. Jones Sr. 21 19 The Country Club (Open) Brookline, Mass. W. Campbell, 1895; Flynn, Rees Jones 22 21 Oak Hill (East) Rochester, N.Y. D. Ross, 1926; R. T. Jones Sr., G.&T. Fazio 23 22 Baltusrol (Lower) Springfield, N.J. Tillinghast, 1922; R. T. Jones Sr. 24 18 Muirfield Village Dublin, Ohio Nicklaus/Muirhead, 1974 25 26 Riviera Pacific Palisades, Calif. Thomas/Bell, 1926
Course Location Architect
Source: Golf Magazine
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT.THE G9 IN PRO SHOPS CONT.
2001 1999Rank Rank
26 24 Southern Hills Tulsa, Okla. Maxwell, 1935 27 28 Bethpage (Black) Farmingdale, N.Y. Tillinghast, 1935 28 27 The Golf Club New Albany, Ohio Dye, 1967 29 37 Whistling Straits Haven, Wis. Dye, 1998 30 25 Camargo Cincinnati, Ohio Raynor, 1921 31 30 Medinah (No. 3) Medinah, Ill. Bendelow, 1928; Collis, Packard 32 33 TPC at Sawgrass (Stadium) Ponte Vedra, Fla. Dye, 1981 33 29 Garden City GC Garden City, N.Y. Emmet, 1898; Travis 34 36 Winged Foot (East) Mamaroneck, N.Y. Tillinghast, 1923 35 35 Los Angeles (North) Los Angeles, Calif. Thomas, 1921 36 34 Quaker Ridge Scarsdale, N.Y. Tillinghast, 1926; R. T. Jones Sr. 37 46 Shoreacres Lake Bluff, Ill. Raynor, 1919 38 39 Inverness Toledo, Ohio D. Ross, 1919; G.&T. Fazio, Hills 39 32 Maidstone East Hampton, N.Y. W. & J. Park, 1891; Tucker 40 31 Shadow Creek North Las Vegas, Nev. T. Fazio/Wynn, 1989 41 44 Bandon Dunes Bandon, Ore. Kidd, 1999 42 43 Scioto Columbus, Ohio D. Ross, 1912; D. Wilson 43 49 Spyglass Hill Pebble Beach, Calif. R. T. Jones Sr., 1966 44 41 Harbour Town Hilton Head Island, S.C. Dye/Nicklaus, 1969 45 38 World Woods (Pine Barrens) Brooksville, Fla. T. Fazio, 1993 46 45 Ocean Forest Sea Island, Ga. Rees Jones, 1995 47 51 Somerset Hills Bernardsville, N.J. Tillinghast, 1918 48 40 The Honors Course Ooltewah, Tenn. Dye, 1984 49 42 Cascades (Upper) Hot Springs, Va. Flynn, 1923 50 47 Cherry Hills Englewood, Colo. Flynn, 1923
Course Location Architect
Source: Golf Magazine
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT.THE G9 IN PRO SHOPS CONT.
2001 1999Rank Rank
51 50 Peachtree Atlanta, Ga. R. T. Jones Sr./Bob Jones, 1948 52 48 Wade Hampton Cashiers, N.C. T. Fazio, 1987 53 54 East Lake Atlanta, Ga. Bendelow, 1910; D. Ross, Rees Jones 54 57 Nantucket Siasconset, Mass. Rees Jones, 1997 55 53 Congressional (Blue) Bethesda, Md. Emmet, 1924; R. T. Jones Sr., Rees Jones 56 55 Valley Club of Montecito Santa Barbara, Calif. Mackenzie/Hunter, 1926 57 59 Double Eagle Galena, Ohio Weiskopf/Morrish, 1991 58 52 Colonial Fort Worth, Tex. Bredemus, 1935; Maxwell 59 61 Baltimore (Five Farms East) Timonium, Md. Tillinghast, 1926 60 60 Black Diamond Lecanto, Fla. T. Fazio, 1987 61 63 Interlachen Edina, Minn. Watson, 1910; D. Ross, R. T. Jones Sr. 62 58 Canterbury Cleveland, Ohio Strong, 1922 63 56 Shoal Creek Birmingham, Ala. Nicklaus, 1977 64 70 Wannamoisett Rumford, R.I. D. Ross, 1916 65 72 Kiawah Island (Ocean) Kiawah Island, S.C. Dye, 1991 66 62 Pablo Creek Ponte Vedra, Fla. T. Fazio, 1996 67 64 Yeamans Hall Hanahan, S.C. Raynor, 1925 68 66 Long Cove Hilton Head Island, S.C. Dye, 1982 69 65 Pasatiempo Santa Cruz, Calif. Mackenzie, 1929 70 73 Pete Dye GC Bridgeport, W.V. Dye, 1994 71 87 Salem Peabody, Mass. D. Ross, 1926 72 74 Baltusrol (Upper) Springfield, N.J. Tillinghast, 1923; Rees Jones 73 77 Plainfield Plainfield, N.J. D. Ross, 1920 74 67 Blackwolf Run (River) Kohler, Wis. Dye, 1988 75 86 Olympia Fields (North) Olympia Fields, Ill. W. Park, 1922
Course Location Architect
Source: Golf Magazine
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT.THE G9 IN PRO SHOPS CONT.
2001 1999Rank Rank
76 - The Dunes New Buffalo, Mich. Nugent, 1996 77 69 Kittansett Marion, Mass. Hood, 1923 78 82 The Creek Locust Valley, N.Y. Macdonald/Raynor, 1925 79 79 Forest Highlands Flagstaff, Ariz. Weiskopf/Morrish, 1988 80 75 Oak Tree GC Edmond, Okla. Dye, 1976 81 96 Hazeltine National Chaska, Minn. R. T. Jones Sr., 1962; Rees Jones 82 91 Firestone (South) Akron, Ohio R. T. Jones Sr., 1960; Nicklaus 83 80 Myopia Hunt Club So. Hamilton, Mass. Leeds, 1896/1901 84 83 Crooked Stick Carmel, Ind. Dye, 1964 85 92 Desert Forest Carefree, Ariz. Lawrence, 1962 86 - Sea Island (Seaside) St. Simons Island, Ga. Colt & Alison 1928; J. Lee, T. Fazio 87 76 Yale University New Haven, Conn. Macdonald, 1926 88 88 Laurel Valley Ligonier, Penn. D. Wilson, 1960 89 81 Pumpkin Ridge (Witch Hollow) Cornelius, Ore. Cupp/Fought, 1991 90 84 Jupiter Hills (Hills) Tequesta, Fla. G. Fazio, 1970 91 78 Estancia Scottsdale, Ariz. T. Fazio, 1995 92 94 Butler National Oak Brook, Ill. G. & T. Fazio, 1974 93 93 Piping Rock Locust Valley, N.Y. Macdonald/Raynor, 1913 94 - Bel Air Los Angeles, Calif. Thomas/Bell, 1926 95 - Newport Newport, R.I. W. Davis, 1894; Tillinghast, D. Ross 96 98 Indianwood (Old) Lake Orion, Mich. Reid/Connellan, 1928; Cupp 97 71 Stonewall Elverson, Penn. Doak/Hanse, 1993 98 89 Troon GC Scottsdale, Ariz. Weiskopf/Morrish, 1986 99 - Bellerive Creve Coeur, Mo. R.T. Jones Sr., 1959 100 90 Pumpkin Ridge (Ghost Creek) Cornelius, Ore. Cupp/Fought, 1991
Course Location Architect
Source: Golf Magazine
APPENDIX:APPENDIX:Oakley / Fossil Strategy Overview Oakley / Fossil Strategy Overview
A MULTI-FACETED MARKETING STRATEGY HAS BEEN CORE TO OAKLEY’S BRANDING AND A MULTI-FACETED MARKETING STRATEGY HAS BEEN CORE TO OAKLEY’S BRANDING AND ENABLED OAKLEY TO BECOME AN IN-DEMAND BRANDENABLED OAKLEY TO BECOME AN IN-DEMAND BRAND
Sports marketing has been essential to Oakley’s branded strategySports marketing has been essential to Oakley’s branded strategyOakley has utilized sports marketing extensively to promote its products and their image
• Use of high-profile athletes that wear, evaluate and promote the company’s eyewear• Athletes and public figures selected to provide a pure editorial endorsement of the brand as opposed to a commercial endorsement • Most often accomplished through the use of two- to four-year performance contracts with small retainers• In addition, Oakley products supplied to athletes and public personalities that wear the sunglasses without any formal arrangement
at a reduced cost or without charge • The company internally employs a marketing staff to identify athletes in each market segment and niche, so it can negotiate the
contracts with the athletes, as well as educate and train the athletes in all aspects of Oakley products
Sports marketing supported with advertising through print media, outdoor media, in-store visual displays and other point-of-sale materials
• Advertising intended to educate consumers on the health and performance benefits of Oakley products as well as to impart technical information in layman's terms
• Print media campaign focused on sport publications such as Bicycling, Surfer, Powder and lifestyle/music publications such as Details and Rolling Stone
• Campaigns occasionally involved electronic media, primarily television, to promote its image and to introduce its brand name to a larger universe of potential customers. Oakley primarily selected specific sports programming such as the Olympics and the Tour de France and contemporary channels, such as MTV and ESPN
As of 1995, Oakley’s marketing budget represented approximately 6% of sales, of which it allocated approximately $5 million for endorsement arrangements and $3 million for advertising
OAKLEY HAS PROJECTED THE IMAGE AS AN IINOVATOR ACROSS ALL THEIR PRODUCT LINES OAKLEY HAS PROJECTED THE IMAGE AS AN IINOVATOR ACROSS ALL THEIR PRODUCT LINES AND CREATED AN EXPANDED DISTRIBUTION NETWORKAND CREATED AN EXPANDED DISTRIBUTION NETWORK
WITH A SIMILAR STRATEGY, FOSSIL IS A GOOD EXAMPLE OF DIVERSIFICATION BY MEANS OF WITH A SIMILAR STRATEGY, FOSSIL IS A GOOD EXAMPLE OF DIVERSIFICATION BY MEANS OF LEVERAGING ITS BRAND. FOSSIL IS EXPANDING THEIR MARKET REACH AND PRODUCT LEVERAGING ITS BRAND. FOSSIL IS EXPANDING THEIR MARKET REACH AND PRODUCT OFFERING OFFERING
Fossil produces over three hundred different styles of watches in a line which continually changesAfter augmenting the watch selection choice for consumers, Fossil expanded its selection to other fashionable accessory items Fossil introduced small leather goods in 1992 for men and women. Wallets, belts, key chains and backpacks helped Fossil establish its expertise in leather goodsIn 1995,Fossil moved into the eyewear market introducing uniquely designed sunglasses creatively capturing the Fossil imageIn addition, the company began opening a group of outlet stores nationwide creating its own distribution channel for discontinued itemsIn 1996, Fossil began opening several company-owned accessory storesDuring 2000, Fossil introduced its first line of apparel, launching it both on-line as well as through several larger format company-owned stores
APPENDIX:APPENDIX:Other Other
Suunto Brand Peeling off the Wristop computer
IMAGE POST PURCHASE IS ALSO IMPORTANTIMAGE POST PURCHASE IS ALSO IMPORTANT