Transcript SUUNTO PROJECT “RAMPING UP SALES” June 2003 Vantaa, Finland IBD team: Marybeth Thomson Carlos Ramirez Youngsuk Ko Shin Hamanaka.

SUUNTO PROJECT
“RAMPING UP SALES”
June 2003
Vantaa, Finland
IBD team:
Marybeth Thomson
Carlos Ramirez
Youngsuk Ko
Shin Hamanaka
TABLE OF CONTENTS
Introduction
Communication Strategy
Distribution Strategy
Marketing Infrastructure
Programs and Tactics
Future Considerations
Appendix
INTRODUCTION
IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO REALIZES THE IMPORTANCE OF
TRANSITIONING FROM A STRONG R&D COMPANY TO A GLOBAL DESIRED SPORT BRAND
COMPANY . . .
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
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
THE MOST DESIRED SPORT BRAND
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
. . . AND TO SUCCESSFULLY FACILITATE THIS SHIFT, THE COMPANY MUST UNDERSTAND THE
END CUSTOMER WHEN DEVELOPING MARKETING STRATEGIES
Consumer needs as the driver
Suunto’s Goals and Strategy
R&D
Customer Feedback
New Product Development
Distribution Feedback
Distribution Decisions
Market Research & Analysis
Consumer
Communication Strategies
Pricing Decisions
SPECIFICALLY, THE COMPANY SHOULD IMPLEMENT A CONSUMER BEHAVIOR MODEL
CREATED AROUND HOW CUSTOMERS THINK, FEEL AND BEHAVE TO GUIDE DECISIONS
PERTAINING TO PRODUCT, MESSAGE, PLACEMENT AND PRICING
Think
Feel
Product Perceptions
Behave
Consumer Behavior
Brand Awareness
Purchasing Decisions
Building Consumer Behavior Profile
OUR TEAM DEVELOPED THE PRELIMINARY MODEL USING INFORMATION AVAILABLE WITHIN
THE COMPANY AND FROM RETAILERS IN THE U.S. WITH THE OBJECTIVE OF UNDERSTANDING
GENERAL CONSUMER BEHAVIOR CHARACTERISTICS THAT SHOULD BE CONSIDERED WHEN
ESTABLISHING COMMUNICATION AND DISTRIBUTION PROGRAMS
Input
Building Consumer Behavior Profile
Think
Brand Awareness
Suunto Product
managers
Feel
Product Perceptions
Suunto survey
Behave
Store buyers
interviews
Purchasing Decisions
Communication
Programs
Store visits
Microsoft
Research
Consumer Behavior
Distribution
Programs
Answers to who, why, how and
where from the customer
perspective
SUUNTO MUST INTERNALIZE THIS PROCESS AND CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILE
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
POSITION TO DESIGN MARKETING STRATEGIES THAT WILL ULTIMATELY HELP THE COMPANY
TO INCREASE SALES
Think
Potential Customer
Need Recognition
Behave
Feel
Search for Alternatives
Median age of 30
High education level
Technology proficient
Male dominated
Active participant
Part of a community
High average income
Trend setter
Influenced by heroes
Why do consumers desire a product?
Performance improvement; Performance verification; Direction; Safety;
Image; Status
How do consumers develop knowledge of product?
User advocates; Role model influence; Independent research; Retail
salespersons; Advertising
Evaluation of Alternatives
How do consumers judges benefit of product?
Purchase of the Product
Where do consumers go to buy the product?
Better game; Reliability; Quality; Ease of use; Offers features beyond
“needs”; Style; Relative value
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
Use of the Product
COMMUNICATION STRATEGY
UNDERSTANDING SUUNTO’S CURRENT POSITION IN THE MARKET DEVELOPMENT CYCLE IS
IMPORTANT TO DESIGNING AN APPROPRIATE COMMUNICATION STRATEGY
Market Development Cycle
SALES
Focus on
stimulating solid
references and
reviews from the
Early Adopters
Focus on creating brand image
and on the communication of
proven product results
Focus on
communicating ability
of product to
differentiate or improve
current performance.
Early Adopters
Early Majority
Late Adopters
Laggards
MANY COMPANIES HAVE ACHIEVED STRONG BRAND AWARENESS WITHOUT MASSIVE
ADVERTISING INVESTMENT, INSTEAD FOCUSING ON BUILDING BRANDS THROUGH GUERILLA
MARKETING TACTICS
Brand Awareness vs. Ad Spending (Illustrative)
+
Mass media advertising
Brand Awareness
Guerilla Marketing
Puma
Procter&Gamble
Spalding
Speedo
Reebok
-
Advertising Spending
+
PUMA AND SPEEDO, BOTH WELL KNOWN SPORTING BRANDS, ARE GREAT EXAMPLES OF
EFFECTIVE GUERILLA MARKETING, FOCUSING ON TARGETING CORE CONSUMERS THROUGH
SELECTIVE COMMUNICATION METHODS
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 Outfitters
Successfully 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
(1) Sports Industry Brand and Athlete Awareness Study (2002)
Source: Sporting Goods Business
Ranked 9th in brand awareness(1), spending $2M on marketing in
2001
Focuses 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
MARKETING TACTICS SHOULD AIM TO DEVELOP A POSITIVE COMMUNICATION LOOP AMONG
USERS AND POTENTIAL CUSTOMERS BY CREATING ADVOCATES FOR ITS PRODUCTS
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
1
USER
3. User Conversion
Focuses on the more traditional
advertisement methods as well
as on alternative methods to
reach out to the target customer
base.
ADVOCATE
3
2
POTENTIAL
CUSTOMER
2. Advocate Outreach
Focuses on building the
opportunity for advocates to
reach out and influence potential
buyers
SUUNTO HAS BEEN ACTIVELY PURSUING VARIOUS PROMOTIONAL ACTIVITIES IN ALL STAGES
OF THE LOOP, HOWEVER SUUNTO MAY COORDINATE THE ACTIVITIES BETTER TO ACHIEVE
GREATER EFFICIENCY
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)
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
USER
ADVOCATE
POTENTIAL
CUSTOMER
2. Advocate Outreach
• Whistler/Blackcomb Partnership
• Outdoor University
• Association with various outdoor
organizations (NSP, PSIA)
COMMUNICATION PROGRAMS SHOULD BE DESIGNED TO SPECIFICALLY REACH CONSUMERS
AT ALL STAGES TO ENSURE NEW CUSTOMER ACQUISTION IS STIMULATED THROUGH MANY
ANGLES
Stage in Loop
Post Purchase
Advocate
Outreach
User
Conversion
Initiative
Suuntosports.
com
Description
•
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
Pro Deals
•
Suunto Pro
Lessons
Web ads and
billboards
• Periodic newsletter with user tips,
special discount offers, and information
on sport related activities
• Rewards such as Suunto branded hats/tshirts for posting logs and referring new
members
• Discount/Giveaways to influential
community members (instructors,
performers) to create instant advocates
Tie up with well regarded schools in each sport segment
• Coordinated lessons structured around
and coordinate lessons which demonstrate the performance
Suunto products to improve
benefits of sports instruments
performance
•
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
Trial Programs
Tactics
• Trial programs allowing target users to
use product for a limited amount of
time
• Billboard placement on highways
leading up to major ski resorts/National
Parks
• Web ads focused on major sportsrelated sites and technology/travel
sites
CASE STUDY: TIVO HAS SUCCESSFULLY DEVELOPED A DEDICATED COMMUNITY AMONG
EXISTING USERS BY SUPPORTING USER DRIVEN COMMUNITY SITES SUCH AS
TIVOCOMMUNITY.COM AND BY OFFERING EXCLUSIVE SERVICES TO ITS SUBSCRIBERS
Post Purchase
Total Cumulative Subscriptions
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
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Apr 30,
2001
Jul 31,
2001
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
Oct 31, Jan 31, Apr 30,
2001
2002
2002
Jul 31,
2002
Oct 31, Jan 31,
2002
2003
CASE STUDY: PALM SUCCESSFULLY LAUNCHED ITS PDAs WITH MINIMAL ADVERTISEMENT
SPENDING, INSTEAD RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH AS MONEYBACK GUARANTEES AND REFERRAL PROGRAMS
Advocate Outreach
• 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
CASE STUDY: SUBARU HAS SUCCESSFULLY BRANDED ITSELF AS A SUPPLIER OF RUGGED
OUTDOOR VEHICLES BY ASSOCIATING ITSELF WITH MULTIPLE ORGANIZATIONS THROUGH A
VIP PARTNERS PROGRAM
User Conversion
Subaru VIP Partners Program
Members 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.
CASE STUDY: POLAR HAS AGGRESSIVELY PURSUED A COMPREHENSIVE COMMUNICATION
STRATEGY THROUGH PARTNERSHIPS AND GRASS ROOTS COMMUNCIATION AND HAVE
CAPTURED NEARLY 80% OF THE HEART RATE MONITOR MARKET IN THE U.S.
User 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.
Sweepstakes
Special Events
Trial Program
Event Participation
SUUNTO’S WHISTLER BLACKCOMB PROGRAM DEMONSTRATES THE SUCCESS OF AN
AGGRESSIVE 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 STRATEGY
In order to reach a larger audience of potential customers, Suunto must pursue a more broadbased communication strategy
Many 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 Me
Additionally, 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 media
Targeted 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 STRATEGY
IN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS NEEDED TO SERVE SUUNTO’S
TYPICAL CONSUMER WITH THE DISTRIBUTION CHANNELS APPROPRIATE FOR THE WRISTOP
PRODUCTS RESULTED IN A RANKING LED BY SPECIALTY SPORTS CHAINS, BUT ALSO SHOWS
CATEGORY KILLERS AND GENERAL SPORTS ARE INTERESTING CHANNELS TO EXPLORE
Secondary
Primary
Functions/ Characteristics
Match to Customer Target
Accessibility to Customer Target
Complementary Brand Image
Image Fit - Sport Equipment Concept
Image Fit - Computer Concept
Sport Knowledge of Sales Staff
Tech Knowledge of Sales Staff
Customer Service
Market Research/ Feedback Potential
Prominence of Product Placement
Potential to Carry Full Product Line
Scalability for Future Product Lines
Weighted Channel Attractiveness Index
Specialty
Specialty Sports
Sports Chain Independents
General
Sports
Technology
Watch
Fashion
Category Killers Specialty
5
3
5
5
2
5
2
4
4
3
2
3
5
2
3
5
1
5
1
5
2
2
1
2
4
3
3
4
2
3
2
3
3
3
4
5
2
4
4
1
5
1
5
3
2
4
5
5
1
1
3
1
2
1
2
5
1
4
5
1
3
2
5
1
1
1
1
3
1
2
1
2
10.91
8.69
9.60
10.09
6.34
5.80
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
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 IN
THE UNITED STATES
Top 100 Sporting Goods Retailers – 2001 Sales
Specialty Sports - Golf
4%
Specialty Sports Hunting/Fishing
4%
Other*
3%
Manufacturer Owned
5%
General Sports
35%
Sporting 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
880
2
1,018
11
782
14
25,016
100
Specialty Sports - Hunting/Fishing
Specialty Sports Outdoor
16%
Specialty Sports - Golf
Other
Footwear & Apparel
33%
* Other includes specialty sports retailers for biking, running, fitness equipment, marine, soccer and team sports apparel.
Source: Sporting Goods Business, June 2002
SUUNTO HAS DEEP PENETRATION OF THE PREMIER OUTDOOR SPECIALTY RETAILERS,
HOWEVER CERTAIN STORES MAY BE PERFORMING BELOW POTENTIAL RELATIVE TO THEIR
SIZE. STRONG SALES AT GALYAN’S SUGGEST THE GENERAL SPORTS CATEGORY SHOULD BE
EXPLORED FURTHER
Top Ten Outdoor Specialty Sports Retailers
Store
Sales
# of
Stores
($MM)
Suunto
Sales
Top Ten General Sports Retailers
Store
Sales
Suunto
Rank
($K)
# of
Stores
3*
30
25
Sports Authority
1,400
198
Cabelas
875
7
26
30
Dicks
1,050
125
REI
740
61
1,223
1
Champs Sports
800
574
Gander Mtn.
250
55
Academy Sports
775
60
Orvis
230
26
19
45
Big 5
663
252
EMS
180
86
147
7
Galyan's
483
26
Sportsman's Guide
169
1
Modell's
460
90
Sportsman's WH
Campmor
110
85
8
1
Sportmart
370
72
52
15
Gart
310
62
Christy Sports
43
36
7
105
Oshman's
256
45
Kittery Trading
42
1
Eastbay
250
1
Popular
35
23
Scheel's
250
20
66
14
* Excludes outlet stores
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales, 2002 Suunto sales
Suunto
Rank
($K)
($MM)
1,140
L.L. Bean
Suunto
Sales
379
3
CURRENTLY, 90% OF SUUNTO USA’s RETAIL RELATIONSHIPS ACCOUNT FOR ONLY 27% OF
WRISTOP DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS* ACCOUNT FOR 41% OF
WRISTOP DOLLAR VOLUME
Suunto USA 2002 Sales - % Dollar Volume
<$ 1K
2%
Suunto USA 2002 Sales - % # of Stores
>$ 100K
1%
>$ 1M M
19%
$ 1-10K
20%
$ 50-99
1%
$ 10-49K
8%
<$ 1K
37%
$ 500-999K
8%
c
$ 10-49K
19%
$ 250-499K
16%
$ 50-99
10%
$ 100-249K
6%
* Top five relationships include REI, Army/Air Force, Galyans, Niche Retail, and Backcountry
$ 1-10K
53%
GIVEN A SIGNIFICANT NUMBER OF SUUNTO’S ACCOUNTS ARE INDEPENDENT RETAILERS,
SUUNTO MUST MONITOR THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED
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
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:
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 products
Build 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 account
U.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
EVEN AS THE COMPANY’S PRODUCT OFFERINGS HAVE EXPANDED
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)
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 stores
Owned 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
GOLF AND CURRENT SUUNTO SALES FORCE NETWORKS ARE WELL EQUIPED TO SERVE THIS
HIGHLY CONCENTRATED CHANNEL
Golf Channel Retail Sales – 1997
1,200
800
400
* 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
Top 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
WHILE INDEPENDENT SPECIALTY STORES DID NOT SCORE HIGHLY IN OUR CHANNEL
ATTACTIVENESS INDEX FOR SUUNTO OVERALL, THE GOLF SEGMENT HAS UNIQUE
CHARACTERISTICS THAT SUGGEST PRODUCT PLACEMENT IN THIS CHANNEL MAY HAVE
MERIT 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
KILLERS REPRESENT A POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE
TECHNOLOGY PROFICIENCY OF SUUNTO’S TARGET CONSUMERS AS WELL AS SUUNTO’S
INITIATIVES WITH MICROSOFT AND POSITION AS A SPORT COMPUTER BRAND
“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
N-Series Consumer Behavior Profile
Category Killer Functions and Characteristics
Trend Setting Info Seekers
Most likely to have MSN as their ISP (26%)
Likely to work in computer related retail (15%)
and finance/ consulting/ accounting (12%)
Young Mobile Achievers
Always on the go; likes travel
Likely to work in computer related businesses
(13%)
Sports Enthusiast
Not necessarily “active”
Favorite sports: Football (college and
professional) and baseball
In general, younger demographics, high average
income, high education level
Microsoft Research 2002

Right place for
target market
Mass appeal and technology emphasis of
the channel reflects target consumer of NSeries
Channel offers benefit for differentiating
Suunto as a computer vis-à-vis watches
The channel also represents a good fit for
Suunto’s traditional target consumer profile
described earlier as technology proficient
THE N-SERIES REPRESENTS THE ENTRY POINT INTO THE TECHNOLOGY CHANNEL, HOWEVER
SUUNTO SHOULD TAKE THE OPPORTUNITY TO ESTABLISH THE SPORT INSTRUMENT
CATEGORY AND CAREFULLY MONITOR THE PRODUCT SUPPLY, BRAND IMAGE AND PRODUCT
PLACEMENT
STRATEGIC CONSIDERATIONS TO BE AWARE OF WHEN ENTERING CATEGORY KILLERS
•
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
•
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
Commissions
Product Supply
•
•
Brand Image
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 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 stores
There 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 G9
The 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
TO EVOLVE INTO A MARKET-CENTERED COMPANY, SUUNTO SHOULD ESTABLISH INTEGRATED
MARKETING OPERATIONS FOR PRODUCT MANAGEMENT, NEW PRODUCT PLANNING AND
MARKETING SUPPORT
Key Operational Functions of a Global Consumer Marketing Company
Product portfolio/profitability
Management
• Product planning &
monitoring
• Product extension/
termination decision
• Brand value maximization
Market research planning
• Required data definition
Communication strategy planning
Cooperation w/ other functions
• Sales, production,
procurement, research,
Finance
New product development
• Cross-functional team
Brand/Product
Management
New Product
Planning
Marketing
Support
Marketing Research
Ad/PR
Mid/long term market research
planning & implementation
Mid/long term ad/PR planning &
implementation
Market data collection & maintenance
Market research initiated by PM
Ad/PR info collection and sharing w/
PM
Market research agency mgmt
Ad/PR effectiveness analysis
Ad/PR agency management
Suunto needs to develop its own organizational structure to incorporate the key
operational functions
• Decision process (gate)
preparation
Continuous ideation for new
market opportunities
• Market analysis, internal
interview, consumer
research, etc
SUUNTO NEEDS TO STRENGTHEN ITS MARKETING INFRASTRUCTURE COMPOSED OF
INFORMATION, PEOPLE AND PROCESS
Marketing
Strategies
Marketing
Mix
Marketing
Operations
Marketing
Infrastructure
Strategic Marketing Planning
Branding
Brand/Product
Management
Information
Communication
Pricing
New Product
Development
People
Distribution
Market Research
Process
KEY INITIATIVES TO IMPROVE SUUNTO’S MARKETING INFRASTRUCTURE
Infrastructure
Description
•
Information
•
•
People
•
•
Process
•
Initial Assessment
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?
•
Source: GlobeSmart, Team Analysis
•
•
Solid top-down
market overview
(size/penetration by
sport sector)
Detail info on local
markets and
consumers (bottomup) required
Marketer
development needs
to be improved
Not enough local
information /
perspective for PM
US branch
positioned to focus
trade marketing
(distribution
management)
Key Initiatives
Marketing
Information
Management
Detail
•
•
Consumer DB
Information
sharing culture/
organization
•
Assistant product
managers (APM)
•
Marketing
process
improvement for
HQ
End-user oriented
implementation in
US branch
Marketing
Specialist
Development
Global
Marketing
Process
Enhancement
•
IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT: CONSUMER INFORMATION AND
INFRASTRUCTURE TO SHARE IT SHOULD BE ESTABLISHED
Information Creation & Maintenance
Technology
Information Usage & Sharing
Culture
Development of Consumer Database
Spec
•
•
Consumer
database
R&R
•
•
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
Financial
database
(product)
Spec
•
R&R
•
Sales/profitability by
product/retailer
Managed by
finance/control
function
Nonnormalized
market data
Spec
•
R&R
•
3d party market/
consumer research
Managed by PM
Information Sharing
Culture/Organization
•
Exchange and cousage 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
Exhaustive
Customer
Understanding
ENHANCEMENT OF MARKETING SPECIALIST DEVELOPMENT: ON-THE-JOB TRAINING TO
DEVELOP MARKETING SPECIALISTS REQUIRED
Introduction of Assistant Product Managers
Primary Objectives
Marketing
Director
To develop a capable marketing specialists
through mentorship/on-the-job-training
PM for Xsport/Snow
PM for XMarine/Golf
PM for
Diving
PM for
Compass
To strengthen market research by letting APM
focus on basic market research and analysis
APM
•
•
•
APM
............
Support PM’s works
Focus on basic market research
Rotate after 1~2 years
To help product managers spend more of
their time on long-run significant tasks
(e.g., NPD)
ENHANCEMENT OF GLOBAL MARKETING OPERATIONS PROCESS: HQ NEEDS TO HAVE MORE
LOCAL MARKET INFORMATION, WHILE US BRANCH COLLECTS INFORMATION AND MAINTAINS
RELATIONSHIP WITH END-USERS
Marketing
Headquarter
(Finland)
•
•
Strategic directions
Implementation guideline
•
•
•
3-1
Local
Branch
(US)
Detail implementation planning
Market monitoring
Consumer/distributor info
Marketing Process Improvement
• 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
3-2
End-user Oriented Implementation
• First-hand information source on US
consumers/distributors
• Planning and implementation of detail
marketing activities
-E.g., user group support
KEY 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 PLAN
Items
Marketing
Information
Management
Marketing HR
Improvement
Marketing
Process
Realignment
Description
•
•
Goals
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)
•
Roles&Responsibilty
To increase market-driven consumer
understanding (bottom-up)
To build basis to conduct marketing
campaigns targeting end-users
•
•
PM – planning/analysis
Customer service –
IT/maintenance/ analysis
•
To establish systematical infrastructure
to develop capable marketers
•
Task force under CEO
direction - planning
•
To strengthen local market
understanding in product management/
development in headquarters
To reposition local branch (US) as a
local information provider and
implementation planner
•
Central board under
CEO direction
Marketing Directorplanning
Local branch –
participation in planning
•
•
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 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 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 REALIGNMENT
Objective:
To strengthen local market understanding in product management/ development in headquarters
To 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 & TACTICS
SUMMARY OF POTENTIAL NEW WRISTOP MARKETING PROGRAMS & TACTICS
Program
Goals
Cost and Benefits
Virtual Caddy
• G9 training Aid Program; target instructors
from very well known golf academies to
use G9 as a training aid tool
• Create advocates that will spread
the word by exposing the benefits of
the product
• approx $50K to reach
approx. +75k
players/year
Smart 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”
• “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
•
•
• To increase brand awareness
• $ 110K with an
expected reach of 3.4
million potential
consumers
• To increase brand awareness
• $17K per month to
reach 200k potential
consumers
Billboards
Web Ads
Description
Billboard ads in targeted areas
Focus on snow and x-sport
• Ski resorts/national park
• Banner ads in targeted web sites
• Generate traffic to Suunto’s web sites
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” OVERVIEW
Objective: Create advocates that will spread the word by demonstrating the benefits of the product and help build the brand
Target: Golf instructors of well known Golf Academies
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 rollout 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 ACADEMIES
Ranking
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Golf Academy
Academy of Golf Dynamics
Aviara Golf Academy
Balance Point Golf Schools
Butch Harmon School of Golf
Classic Swing Golf School
Craft-Zavichas Golf School
Dana Rader Golf School
Dave Pelz Scoring Game Schools
David Leadbetter Golf Academy
Dr. David Wright's Mind Under Par Golf School
ESPN 3-Day Resort School
Extraordinary Golf
Golf Advantage School
Grand Cypress Academy of Golf
Jim McLean Golf School
John Jacobs' Golf Schools
Kapalua Golf Academy
Martin Green Golf Academy
McGetrick Golf Academy
Natural Golf Schools
Phil Ritson-Mel Sole Golf School
Pine Needles Learning Center
Resort Golf Schools
Todd Sones Impact Golf School
Tradition Golf School
Presence in California?
X
X
X
X
X
X
X
X
X
X
Sytems to improve game?
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
G9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS
Assumptions
# Teachers/school
hrs/week
week/yr
Hour training the professors
5
10
40
5
Wristop marginal cost per unit
150
• Five instructors per Academy
• Teaching 5 hours/ week
• One player per instructor
• $150 marginal cost per Wristop
•One hour training for each instructor
Training Costs per hour
40
POP+Brochures+ placement per School400
Location
California
Florida
Phoenix
Las Vegas
Texas
Wristop
7,500
7,500
4,500
5,250
3,750
Training
2,000
2,000
1,200
1,400
1,000
POP+Brochures+
placement
4,000
4,000
2,400
2,800
2,000
Total Costs
13,500
13,500
8,100
9,450
6,750
51,300
Location
California
Florida
Phoenix
Las Vegas
Texas
# Academies
10
10
6
7
5
Potential Players exposed
20,000
20,000
12,000
14,000
10,000
76,000
G9 TRAINING AID PROGRAM: A GOOD FIT WITH CURRENT PRODUCT STRATEGY
Aiming to affect the instant satisfaction phase
Products
Instant
satisfaction
Deeper
understanding
Community
G9 TRAINING AID PROGRAM: STAGED ROLL OUT
3Q 2003
Phase 1
Phase 2
4Q 2003
1Q 2004
2Q 2004
3Q 2004
4Q 2004
California
Florida
Phoenix
Las Vegas
Texas
Phase 3
• 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
Rest US
M9 TRAINING AID PROGRAM: “SMART SAILING” OVERVIEW
Objective: create advocates that will spread the word by demonstrating the benefits of the product
Target: Sailing instructors of well known Sailing Academies in the US., specifically US Sailing Certificate Schools
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
School Name
State
School Name
State
Club Nautique
CA
Piers Park Sailing Center
MA
US Sailing Center - Long Beach California
CA
Boston Sailing Center
MA
Del Mar Marina and Sailing Center
CA
J World Annapolis
MD
J World San Diego
CA
Annapolis Sailing School
MD
San Diego Sailing Academy
CA
Onboard Sailing School
MN
CA
Offshore Sailing School
NY
Orange Coast College
CA
Offshore Sailing School
NY
Scenic Bay Sailing School & Charters
CA
New York Sailing Center and Yacht Club
NY
Club Nautique
CA
Oyster Bay Sailing School
NY
J World San Francisco
CA
Rochester Yacht Club
NY
Club Nautique
CA
Harbor North Sailing School
OH
California Maritime Academy Sailing Program CA
Thunderbird Sailing Club
OK
OCSC-San Francisco Bay Sailing School
CA
J World Sailing Schools
RI
CA
Ocean Sailing Academy
SC
CA
Concord Yacht Club
TN
Southern Sailing Academy, Inc
FL
Offshore Sailing School
BVI
J World
FL
Offshore Sailing School
BVI
Florida Keys Sailing, Inc
FL
Magellan Sailing Center, Inc
TX
Offshore Sailing School
FL
At The Helm Sailing School
TX
Shake-A-Leg Miami
FL
Texas Sailing Academy
TX
Castle Harbor Sailing School
FL
Vashaw Ent, Inc/Washington Sailing School VA
Annapolis Sailing School
FL
Premier Sailing School
VA
FL
Jones Maritime Co
VI
Offshore Sailing School
FL
Starpath School of Navigation
WA
Actionquest/Sea-Mester
FL
Wind Works Sailing Center, Inc
NW
Lake Forest Sailing
IL
Milwaukee Community Sailing Center
WI
Chicago Sailing Club
IL
Mission Bay Aquatic Center
Cass' Sailing School & Charters
Club Nautique
Offshore Sailing School
US Sailing Association
M9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS
Assumptions
# Teachers/school
session/week
week/yr
Hour training the professors
Wristop marginal cost per unit
Training Costs per hour
POP+Brochures+ placement per School
Location
California
Florida
NY
Texas
5
3
40
5
150
40
400
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
# Academies Potential sailors exposed
15
12
5
3
9,000
7,200
2,400
720
19,320
Location
California
Florida
NY
Texas
Wristop
11250
9000
3000
900
Training
3750
3000
1250
750
POP+Brochures+
Total Costs
placement
6000
21,000
4800
16,800
2000
6,250
1200
2,850
46,900
M9 TRAINING AID PROGRAM: STAGED ROLL OUT
3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004
Phase 1
California
Phase 2
Phase 3
• Pilot Test in California – Learn and build
success stories
• Roll out to to FL if successful experience
FL
NY
TX
• Roll out to the ,most prestigious schools in FL, take
advantage of the geographic concentration of the
schools
Rest US
S6 DEMO PROGRAM: ”TRY ME” OVERVIEW
Objective: attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides
Target: Skiers at intermediate and advanced levels of expertise of well known resorts
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 STATE
Ranking + Resort
45. Lodge & Spa at Breckenridge
41. Sheraton Crested Butte Resort
3. Lodge & Spa at Cordillera
4. Vail Cascade Resort & Spa
5. Lodge at Vail
6. Sonnenalp Resort of Vail
23. Vail Marriott Mountain Resort
9. St. Regis
15. Little Nell
18. Hotel Jerome
10. Wyndham Peaks Resort
20. Ice House Lodge
28. Silvertree Hotel
47. Stonebridge Inn
7. Park Hyatt Beaver Creek Resort
33. Steamboat Grand Resort Hotel
43. Torian Plum
46. Sheraton Steamboat Resort
21. Charter at Beaver Creek
34. Beaver Creek Lodge
17. Delta Whistler Resort
16. Snowmass Club
1. Westin Resort & Spa
2. Fairmont Chateau Whistler
8. Pan Pacific Lodge
13. Summit Lodge
Beginner Intermediate Advance State
15%
28%
57% Col
14%
32%
54% Col
18%
29%
53% Col
18%
29%
53% Col
18%
29%
53% Col
18%
29%
53% Col
18%
29%
53% Col
0%
48%
52% Col
0%
48%
52% Col
0%
48%
52% Col
24%
38%
38% Col
24%
38%
38% Col
7%
55%
38% Col
7%
55%
38% Col
34%
29%
37% Col
13%
56%
31% Col
13%
56%
31% Col
13%
56%
31% Col
34%
39%
27% Col
34%
39%
27% Col
20%
55%
25% Col
7%
55%
38% Vancouver
20%
55%
25% Vancouver
20%
55%
25% Vancouver
20%
55%
25% Vancouver
20%
55%
25% Vancouver
Ranking + Resort
36. Fairmont Chateau Lake Louise
40. Post Hotel
38. Embassy Suites Hotel
50. Harvey's Resort & Casino
26. Resort at Squaw Creek
49. Plumpjack Squaw Valley Inn
12. Knob Hill Inn
19. Sun Valley Lodge
35. Summit at Big Sky
29. Taos Inn
37. Mirror Lake Inn
14. Sunriver Resort
32. Fairmont Tremblant
39. Fairmont Le Chateau Frontenac
48. Cliff Lodge
31. The Homestead
42. Lodge at the Mountain Village
11. Stein Eriksen Lodge
22. Lodges at Deer Valley
25. Alta Lodge
30. Goldener Hirsch Inn
24. Spring Creek Ranch
27. Amangani Resort
44. Alpenhof Lodge
Beginner Intermediate Advance State
25%
45%
30% Alberta
25%
45%
30% Alberta
20%
45%
35% Cal
20%
45%
35% Cal
25%
45%
30% Cal
25%
45%
30% Cal
36%
42%
22% Idaho
36%
42%
22% Idaho
17%
25%
58% Montreal
24%
25%
51% NM
20%
36%
44% NY
15%
25%
60% Oregon
17%
33%
50% Quebec
25%
41%
34% Quebec
25%
30%
45% Utah
18%
44%
38% Utah
18%
44%
38% Utah
15%
50%
35% Utah
15%
50%
35% Utah
25%
40%
35% Utah
15%
50%
35% Utah
10%
40%
50% Wyoming
10%
40%
50% Wyoming
10%
40%
50% Wyoming
S6 DEMO PROGRAM: RELEVANT SNOW SPORTS DEMOGRAPHICS
Ages per Discipline
4%
12%
2%
3%
5%
7%
15%
17%
20%
26%
8%
Alpine
12-23
Snowboard
18-24
25-34
24%
8%
6%
8%
10%
9%
Cross Country
35-44
45-54
27.60%
50.00%
40.80%
20%
15%
18%
39.80%
17%
15%
31%
19%
7-11
13%
24%
21%
15%
Skiers Gender per Discipline
60.20%
Alpine
Snowshoe*
55-64
65-74
75+
72.40%
50.00%
Snowboard
Male
Total Number of U.S. Snow Sports Visits (In Millions)
Cross Country
59.20%
Snowshoe*
Female
Consumer Spending
$787 Millions
18.1
12.2
12.1
5
Northeast
Southeast
$663 Millions
$663 Millions
7
Midwest
Rockies
Source: National Sporting Goods Association, 2001 Sports Participation Study
Pacific
Apparel
Equipment
Accessories
S6 DEMO PROGRAM: INITIAL COST/ BENEFIT ANALYSIS
Time with Skier
Set up (sign up + quick training)
Ski ride time (hrs)
Total trial time
Costs
Marginal Costs per wristop
Booth Rental
POP
Other
Min
10
20
30
Assumptions + Calculations
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
Units Cycle
100
30
1
500
3
12
200
3
12
100
3
24
Total Cost per season
Total
3,000
18,000
7,200
7,200
35,400
BILLBOARD ADVERTISEMENT: OVERVIEW
Objective: To increase brand awareness among target consumers
Target: Top ski resorts in North America and top national parks in US
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 required
Source: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis
BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS
Top 25 Ski Resorts in North America
Rank
(1) Estimated annual visitors 2.2M
Source: Skiing Magazine (2002)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Resort
(1)
Whistler Blackcomb
Alta/Snowbird
Jackson Hole
Squaw Valley
Mammoth
Vail
Aspen/Aspen Highlands
Big Sky
Aleyeska
Fernie,
Steamboat
Heavenly
Telluride
Kirkwood
Snowbasin
Big Mountain
Park City
The Canyons
Beaver Creek
Sunshine Village
Lake Louise
Taos
Crested Butte
Kicking Horse
Crystal
State
BC
UT
WY
CA
CA
CO
CO
MT
AK
BC
CO
CA
CO
CA
UT
MT
UT
UT
CO
AB
AB
NM
CO
BC
WA
BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS CONT.
Top 25 National Parks in US
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: National Park Service
National Parks
GREAT SMOKY MOUNTAINS NP
GRAND CANYON NP
OLYMPIC NP
YOSEMITE NP
ROCKY MOUNTAIN NP
YELLOWSTONE NP
GRAND TETON NP
ZION NP
ACADIA NP
GLACIER NP
MAMMOTH CAVE NP
HOT SPRINGS NP
SHENANDOAH NP
MOUNT RAINIER NP
HALEAKALA NP
JOSHUA TREE NP
HAWAII VOLCANOES NP
EVERGLADES NP
SEQUOIA NP
BADLANDS NP
DEATH VALLEY NP
BRYCE CANYON NP
WIND CAVE NP
ARCHES NP
PETRIFIED FOREST NP
Recreational Visitors
(2002)
9,316,420
4,001,974
3,691,310
3,361,867
2,988,475
2,973,677
2,612,629
2,592,545
2,558,572
1,905,689
1,891,307
1,440,227
1,389,244
1,310,390
1,260,601
1,178,376
1,110,998
968,909
920,292
908,898
897,596
886,436
810,298
769,672
571,586
Location
Tennessee and North Carolina
Grand Canyon, AZ
Port Angeles, WA
Yosemite National Park, CA 95389
Estes Park and Grand Lake, CO
ID,MT,WY
Moose, WY
Springdale, UT
Bar Harbor, ME
Northwest Montana
Mammoth Cave, KY
Hot Springs, AR
Blue Ridge Mountains near Luray, VA
Ashford, WA
Kula, Maui, HI
Twentynine Palms, CA
Hilo, HI
Miami, Naples, and Homestead, FL
Sierra Nevada near Three Rivers, CA
southwestern, SD
Death Valley, CA
Bryce Canyon, UT
Hot Springs, SD
Moab, UT
Petrified Forest National Park, AZ
BILLBOARD ADVERTISEMENT: INITIAL COST/ BENEFIT ANALYSIS
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%)
Site
Whister/Blackcomb
Great Smokie Mts. N.P.
Olympic N.P.
Total
Monthly
#
Billboard Cost billboards
3,000
1
3,000
1
3,000
1
Monthly Cost
Source: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis
3,000
3,000
3,000
9,000
Yearly cost
36,000
36,000
36,000
108,000
Recreational
Estimated
Visitors (Year) Target Reach
2,200,000
493,274
9,316,420
2,088,883
3,577,007
802,020
15,093,427
3,384,176
WEB ADS: OVERVIEW
Objective: To increase brand awareness among target consumers
Target: Top sport-related media/portal and community sites
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 required
Source: TrafficRanking.com, Alexa.com, Team Analysis
WEB ADS: TOP GENERAL SPORT PORTAL/ MEDIA SITES
Top 20 Sport Portal/ News /Media Sites
No
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
(1)
849
1,594
3,105
10,794
10,868
11,107
12,428
31,734
35,400
42,606
106,915
123,965
126,985
131,228
170,132
177,698
218,205
351,469
408,780
496,485
Domain
theinsiders.com
rivals.com
sportsnetwork.com
ctvsportsnet.com
espn.com
allsports.com
sportsfeed.com
cnnsi.com
sportserver.com
sports.com
sports-central.org
doitsports.com
netsports.com
sportscribe.com
armchairqb.com
psx.com
iis-sports.com
cbssportsline.com
cswstats.com
sportsfilter.com
Visits(2)
8,165
6,828
5,915
5,106
5,103
5,096
5,057
4,858
4,844
4,826
4,774
4,770
4,770
4,767
4,763
4,763
4,760
4,756
4,753
4,753
Page (3)
Views
23,366
29,025
18,235
9,614
10,034
9,506
9,145
8,928
8,988
8,757
8,722
8,687
8,669
8,907
8,683
8,666
8,669
8,645
8,690
8,655
Links(4)
86,193
200,590
118,485
6,258
394,088
48,061
5,673
284,948
70,673
92,201
19,024
20,359
0
4,505
0
68
13,350
18,106
0
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 site
Note: Figure is based on around 30,000 sample surfers selected by TrackRanking.com
Source: TrafficRanking.com (6.2003), Alexa.com (6.2003), Team Analysis
WEB ADS: TOP SPECIALIZED SPORT SITES DEDICATED TO SUUNTO’S TARGET SPORT
SEGMENTS
Top 10 Segment-specific Sport Sites
X-sports
No
Rank
1
2
3
4
5
6
7
8
9
10
4,053
15,593
40,514
46,266
47,610
57,267
79,212
126,860
168,347
178,310
Domain
Visits
active.com
gorp.com
wildernet.com
publicbookshelf.com
outdoorreview.com
backpacker.com
peakware.com
outsidemag.com
progressivefarmer.com
thebackpacker.com
5,656
4,991
4,830
4,819
4,816
4,802
4,784
4,770
4,763
4,763
Page
Views
18,658
9,604
8,928
8,725
8,851
8,858
8,788
8,669
8,690
8,662
Links
184,903
330,006
21,110
3,254
143,016
22,278
23,697
212,689
6,024
10,596
No
Rank
1
2
3
4
5
6
7
8
9
10
51,125
65,497
87,389
122,977
131,869
145,974
222,951
294,911
322,076
374,259
Golf
Rank
Domain
Domain
goski.com
onthesnow.com
ski.com
skinet.com
myskitrip.com
skitown.com
skimag.com
skiingmag.com
freezeonline.com
epicski.com
Visits
4,809
4,795
4,781
4,770
4,767
4,767
4,760
4,756
4,756
4,756
Page
Views
9,142
8,739
8,732
8,694
8,862
8,673
8,662
8,666
8,652
8,645
Links
42,053
13,267
32,541
0
0
38,534
18
0
5
0
Marine
No
Rank
Page
Links
Views
1
46,925
1
20,491 golf.com
4,928
9,247
60,077
2
55,601
2
35,953 golfdigest.com
4,840
11,035
29,704
3
99,616
3
43,210 worldgolf.com
4,823
9,149
50,147
4
179,549
4
43,701 golfreview.com
4,823
8,897
141,097
5
334,250
5
79,807 freegolfinfo.com
4,784
8,760
8,093
6
422,244
6
173,209 ifyougolf.com
4,763
8,673
14,935
7
708,539
7
212,746 golf101.com
4,760
8,676
486
8
829,949
8
241,159 segetaway.com
4,760
8,648
547
9
339,904 egolfweekly.com
4,756
8,648
0
10
395,739 st-duffer.com
4,753
8,718
0
Note: surveyed web sites include portal, news/magazine, and organization sites for each sport segment
Note: Figure is based on around 30,000 sample surfers selected by TrackRanking.com
Source: TrafficRanking.com(6.2003), Team Analysis
No
Snow Sports
Visits
Domain
boattest.com
marinersguide.com
forsailbyowner.com
latitude38.com
schoonerman.com
boatingamerica.com
bwsailing.com
sailing.com
Visits
4,816
4,805
4,777
4,763
4,756
4,753
4,753
4,753
Page
Views
9,114
8,715
8,673
8,662
8,648
8,676
8,641
8,641
Links
9,929
10,596
0
0
19,525
328
0
0
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%
Category
Sport-general
Sport-spec-outdoor
Sport-spec-ski
Sport-spec-sailing
Sport-spec-golf
Computer/Tech
Travel
Total
Site
theinsiders.com
active.com
goski.com
boattest.com
golf.com
zdnet.com
mapquest.com
Estimated
Internet
Daily reach
number of
users
per million
% reach visits per between 25(3 mo.
month (US,
49 (US,
avg.)
million)
million)
530
0.1%
0.09
0.05
126
0.0%
0.02
0.01
12
0.0%
0.00
0.00
42
0.0%
0.01
0.00
102
0.0%
0.02
0.01
2,080
0.2%
0.35
0.18
7,250
0.7%
1.21
0.63
0.88
Source: Alexa.com, TrafficRanking.com, Internet Search, Team Analysis
Target
reach
(millon)
0.01
0.00
0.00
0.00
0.00
0.04
0.14
0.194
Monthly Yearly cost
cost (USD)
(USD)
885
210
20
69
170
3,474
12,108
16,935
10,621
2,515
240
832
2,044
41,683
145,290
203,226
WEB ADS: FOCUS ON MAJOR SPORTS-RELATED SITES AND TECHNOLOGY/ TRAVEL SITES,
WHERE TARGET CONSUMERS AND HIGH TRAFFIC EXIST
Prioritization of Web Site Categories
• General
portal/directory
•General
news/media
• Shopping
/auction
•Travel sites
• Sport portal/
news/media sites
• Other categoryspecific sites(1)
• Computer/tech
sites
Traffic
High
• Segmentspecific sport
sites
• Sport user
group/club sites
Priority sites
Low
Sportenthusiast
General
Consumer Target
(1) Entertainment, art, health care, business/economy, science, etc.
Source: Team Analysis
IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM HAS THE POTENTIAL TO TAKE
THE WHISTLER/BLACKCOMB PARTNERSHIP FURTHER
User Acquisition
Advocate Outreach
Strategic
Partnership
i.e. Whistler
Suunto Booth
on site
Opportunity for Suunto
advocates to share
experiences with others.
A PC may be placed for
on-hand demonstration.
Giveaway program
to instructors
Warranty Registration
on Suunto.com
S6 Demo
Program
Allow users to try out a
product for limited time.
Quick-user guide showing
how to use basic
functions.
Lessons utilizing WTC as
performance
enhancement tool
Purchase
decision
Special discounts
for lesson
participants
Work with instructors to incorporate
WTC to improve game. Encourage
them to post measurable results on
Suuntosports. com
Post-Purchase
Encourage users to
post “success stories”
through giveaways
Communication of
upcoming events
through newsletters
Nurture community development through periodic
communication with end-users
Suuntosports.com
KEY MILESTONES FOR RECOMMENDED ACTION ITEMS
Action Items
3Q 2003
4Q 2003
1Q 2004
2Q 2004
G9 Training Aid Program
Pilot in California
Replicate to FL, PX, LA, TX
Replicate to the rest of US
Communication
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
Billboards Ads
Start planning
Start w/ launch of new X-sport/Snow product
Web Ads
Marketing infrastructure
Start planning
Start w/ launch
of N-Series
Effectiveness evaluation
Marketing Information Management
Develop. finish
Requirement study/design finish
System
Open
Marketing HR Improvement
Task force formed
Plan finished
New process launch
Interim review
Marketing Process Realignment
Central board
formed
Plan finished
New process launch
Interim review
FUTURE CONSIDERATIONS
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
DISTRBUTION STRATEGY AND BRAND AWARENESS IN ORDER TO INCREASE PENETRATION
AMONG THE EXISTING TARGET SPORT SEGMENTS
New Product Development
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
Current
penetration
Increase penetration
within current niche
# Customers
IN THE LONG TERM, THE COMPANY COULD PENETRATE DIFFERENT MARKETS, WHICH MEANS
EXPANDING TARGET CUSTOMER SEGMENTS AND OFFERING A NEW VALUE PROPOSITION
Long Term Goals
New Product Development
Short Term Goals
Penetrate
different niches,
introduce
different products
Explore
different
niches
Current
penetration
Increase
penetration
within current niche
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
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
# Customers
APPENDIX
APPENDIX:
Distribution Matrix Definitions of Key
Functions/ Characteristics
DEFINITIONS OF KEY FUNCTIONS AND CHARACTERISTICS RELEVANT TO DISTRIBUTION OF
SUUNTO PRODUCTS
Secondary
Primary
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 “most
desired”
Reflects Suunto branding for the “active participant” and “sports enthusiast” consumer
Image Fit - Sport Equipment Concept
Tech Knowledge of Sales Staff
Reflects Suunto branding as a “sport computer”
Staff identify with application of product to specific sports and able to emphasize
“performance measurement” benefits
Staff experienced and competent explaining technical functions of product
Customer Service
Service is efficient and high quality
Market Research/ Feedback Potential
Prominence of Product Placement
Retailer relationships can provide insight into market trends and product perceptions of
target consumer profile group
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
Image Fit - Computer Concept
Sport Knowledge of Sales Staff
APPENDIX:
Sporting Goods Business’ Top 100 Sporting Goods Retailers
SBG’s TOP 100 SPORTING GOODS RETAILERS
Distributors
Foot Locker
Sports Authority
L.L. Bean
Dicks Sporting Goods
Famous Footwear
Cabelas
Bass Pro Shops
Champs Sports
Nike
Academy Sports and Outdoors
REI
The Finish Line
Pacific Sunwear
Big 5
Footaction
Galyan's Trading Co
Shoe Carnival
Modell's
Just Four Feet
Lady Foot Locker
Journeys
Sportmart
Gart
Play It Again Sports
Orvis
Channel Type
Footwear & Apparel
General Sports
Specialty Sports - Outdoor
General Sports
Footwear & Apparel
Specialty Sports - Outdoor
Specialty Sports - Hunting/Fishing
General Sports
Manufacturer Owned
General Sports
Specialty Sports - Outdoor
Footwear & Apparel
Footwear & Apparel
General Sports
Footwear & Apparel
General Sports
Footwear & Apparel
General Sports
Footwear & Apparel
Footwear & Apparel
Footwear & Apparel
General Sports
General Sports
Footwear & Apparel
Specialty Sports - Outdoor
Rank
1
2
3
4
5
6
7
8
8
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Revenues
(2001, in millions)
1,800
1,400
1,140
1,050
1,044
875
850
800
800
775
740
701
685
663
550
483
477
460
450
425
382
370
310
259
230
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
Stores
1,472
198
3 (12 outlet)
125
920
7
14
574
13
60
61
449
718
252
494
26
183
90
88
632
533
72
62
502
26
SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.
Distributors
Oshman's
Athletes Foot
Eastbay
Gander Mountain
Scheel's All Sports
Dunhams
Hibbett Sporting Goods
Reebok
Sports Chalet
Golfsmith
Pro Golf of America
Kids Foot Locker
Bob's Stores
MC Sporting Goods
Timberland
Edwin Watts Golf Shops
Eastern Mountain Sports
The Sportsman's Guide
Performance Inc.
G.I. Joes
Sketchers USA
Hat World
The Sportsman's Warehouse
Vans
GSI Commerce
Channel Type
General Sports
Footwear & Apparel
General Sports
Specialty Sports - Outdoor
General Sports
General Sports
General Sports
Manufacturer Owned
General Sports
Specialty Sports - Golf
Specialty Sports - Golf Discount
Footwear & Apparel
Footwear & Apparel
General Sports
Footwear & Apparel
Specialty Sports - Golf
Specialty Sports - Outdoor
Specialty Sports - Outdoor
Specialty Sports - Bike
General Sports
Manufacturer Owned
Footwear & Apparel
Specialty Sports - Outdoor
Manufacturer Owned
Other
Rank
26
27
27
27
27
31
32
33
33
35
35
37
38
38
40
41
42
43
44
45
46
47
48
49
50
Revenues
(2001, in millions)
256
250
250
250
250
245
241
230
230
220
220
215
210
210
204
200
180
169
150
135
120
118
110
103
103
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
Stores
45
400
1
55
20
116
329
213
26
26
145
391
34
70
23 (50 outlet)
49
86
1
47
18
83
418
8
160
n/a
SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.
Distributors
Olympia Sports
Omni Fitness
The Walking Company
Decathlon
Copeland Sports
Shoe Pavilion
Campmor
Jimmy Jazz
Overtons
Road Runner Sports
Dr. Jays
Golf USA
Chicks Sporting Goods
Worldwide Golf Enterprises
Adidas America
Las Vegas Golf & Tennis
Sports Endeavors
Paragon Sports
Gym Source
Quicksilver
International Golf Discount
Just Sports
Ron Jon Surf Shop
Christy Sports
Kittery Trading Post
Channel Type
General Sports
Specialty Sports - Equipment
Footwear & Apparel
General Sports
General Sports
Footwear & Apparel
Specialty Sports - Outdoor
Footwear & Apparel
Specialty Sports - Marine
Specialty Sports - Running
Footwear & Apparel
Specialty Sports - Golf Discount
General Sports
Specialty Sports - Golf Discount
Manufacturer Owned
Specialty Sports - Golf
Specialty Sports - Soccer
General Sports
Specialty Sports - Equipment
Manufacturer Owned
Specialty Sports - Golf Discount
Footwear & Apparel
Specialty Sports - Other
Specialty Sports - Outdoor
Specialty Sports - Outdoor
Rank
51
52
52
54
55
56
57
57
57
57
61
61
63
64
65
65
67
68
69
70
71
71
71
74
75
Revenues
(2001, in millions)
102
100
100
95
90
88
85
85
85
85
80
80
78
75
60
60
55
52
50
47
45
45
45
43
42
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
Stores
84
65
97
21
37
80
1
35
3
1
17
89
9
35
3 (43 outlet)
25
1
22
28
48
91
4
36
1
SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.
Distributors
The Pro Image
Anaconda Sports
Martin's Golf & Tennis
Popular Outdoor Outfitters
Ski Market
Tri-City Sporting Goods
Shoe City
Special Tee Golf & Tennis
Peter Glenn
Turner's Outdoorsman
Paradies/ PGA Tour Shops
Fleet Feet
City Sports
Bob Wards and Sons
Golfers' Warehouse
Johnny Mac's Sporting Goods
Boyne Country Sports
Fanbuzz.com
Kessler's Team Sports
Schuylkill Valley Sports
Bike Line
Blades, Board, and Skate
Dixie Sporting Goods
Fitness Holdings International
Push Pedal Pull
Channel Type
Footwear & Apparel
General Sports
Specialty Sports - Golf
Specialty Sports - Outdoor
Specialty Sports - Outdoor
General Sports
Footwear & Apparel
Specialty Sports - Golf
Specialty Sports - Outdoor
Specialty Sports - Hunting/Fishing
Specialty Sports - Golf
Footwear & Apparel
General Sports
Specialty Sports - Outdoor
Specialty Sports - Golf Discount
General Sports
Specialty Sports - Outdoor
Team Sports Apparel
Team Sports Apparel
Team Sports Apparel
Specialty Sports - Bike
Specialty Sports - Outdoor
General Sports
Specialty Sports - Equipment
Specialty Sports - Equipment
Rank
76
77
78
78
78
78
82
83
84
84
86
87
88
89
90
91
92
93
93
95
96
96
96
99
100
Revenues
(2001, in millions)
40
35
35
35
35
35
33
31
30
30
28
28
27
25
24
22
21
20
20
19
18
18
18
17
15
Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers
Stores
80
2
3
23
24
1
27
18
21
13
36
38
9
5
5
4
27
5
14
22
14
5
14
12
APPENDIX:
Top 100 Golf Courses in the USA
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING
THE G9 IN PRO SHOPS
2001
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: Golf Magazine
1999
Rank
1
2
3
4
5
6
8
7
9
10
12
14
15
13
11
16
23
20
17
19
21
22
18
26
Course
Pine Valley
Cypress Point
Pebble Beach
Augusta National
Shinnecock Hills
Pinehurst (No. 2)
Sand Hills
Merion (East)
Oakmont
Seminole
Winged Foot (West)
San Francisco
Prairie Dunes
National GL of America
Crystal Downs
Oakland Hills (South)
Pacific Dunes
Fishers Island
Chicago GC
Olympic (Lake)
The Country Club (Open)
Oak Hill (East)
Baltusrol (Lower)
Muirfield Village
Riviera
Location
Clementon, N.J.
Pebble Beach, Calif.
Pebble Beach, Calif.
Augusta, Ga.
Southampton, N.Y.
Pinehurst, N.C.
Mullen, Neb.
Ardmore, Pa.
Oakmont, Pa.
North Palm Beach, Fla.
Mamaroneck, N.Y.
San Francisco, Calif.
Hutchinson, Kan.
Southampton, N.Y.
Frankfort, Mich.
Birmingham, Mich.
Bandon, Ore.
Fishers Island, N.Y.
Wheaton, Ill.
San Francisco, Calif.
Brookline, Mass.
Rochester, N.Y.
Springfield, N.J.
Dublin, Ohio
Pacific Palisades, Calif.
Architect
Crump/Colt, 1918
Mackenzie, 1929
Neville/Grant, 1919; Egan
Mackenzie/Bobby Jones, 1932
Toomey/Flynn, 1931
D. Ross, 1903-35
Coore/Crenshaw, 1995
H. Wilson, 1911
Fownes, 1903
D. Ross, 1929; D. Wilson
Tillinghast, 1923
Tillinghast, 1915
Maxwell, 1935-56
Macdonald, 1911
Mackenzie/Maxwell, 1929
D. Ross, 1917; R. T. Jones Sr.
Doak, 2001
Raynor, 1917
Macdonald, 1895; Raynor
Reid, 1917; Whiting, R. T. Jones Sr.
W. Campbell, 1895; Flynn, Rees Jones
D. Ross, 1926; R. T. Jones Sr., G.&T. Fazio
Tillinghast, 1922; R. T. Jones Sr.
Nicklaus/Muirhead, 1974
Thomas/Bell, 1926
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING
THE G9 IN PRO SHOPS CONT.
2001
Rank
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Source: Golf Magazine
1999
Rank
24
28
27
37
25
30
33
29
36
35
34
46
39
32
31
44
43
49
41
38
45
51
40
42
47
Course
Southern Hills
Bethpage (Black)
The Golf Club
Whistling Straits
Camargo
Medinah (No. 3)
TPC at Sawgrass (Stadium)
Garden City GC
Winged Foot (East)
Los Angeles (North)
Quaker Ridge
Shoreacres
Inverness
Maidstone
Shadow Creek
Bandon Dunes
Scioto
Spyglass Hill
Harbour Town
World Woods (Pine Barrens)
Ocean Forest
Somerset Hills
The Honors Course
Cascades (Upper)
Cherry Hills
Location
Tulsa, Okla.
Farmingdale, N.Y.
New Albany, Ohio
Haven, Wis.
Cincinnati, Ohio
Medinah, Ill.
Ponte Vedra, Fla.
Garden City, N.Y.
Mamaroneck, N.Y.
Los Angeles, Calif.
Scarsdale, N.Y.
Lake Bluff, Ill.
Toledo, Ohio
East Hampton, N.Y.
North Las Vegas, Nev.
Bandon, Ore.
Columbus, Ohio
Pebble Beach, Calif.
Hilton Head Island, S.C.
Brooksville, Fla.
Sea Island, Ga.
Bernardsville, N.J.
Ooltewah, Tenn.
Hot Springs, Va.
Englewood, Colo.
Architect
Maxwell, 1935
Tillinghast, 1935
Dye, 1967
Dye, 1998
Raynor, 1921
Bendelow, 1928; Collis, Packard
Dye, 1981
Emmet, 1898; Travis
Tillinghast, 1923
Thomas, 1921
Tillinghast, 1926; R. T. Jones Sr.
Raynor, 1919
D. Ross, 1919; G.&T. Fazio, Hills
W. & J. Park, 1891; Tucker
T. Fazio/Wynn, 1989
Kidd, 1999
D. Ross, 1912; D. Wilson
R. T. Jones Sr., 1966
Dye/Nicklaus, 1969
T. Fazio, 1993
Rees Jones, 1995
Tillinghast, 1918
Dye, 1984
Flynn, 1923
Flynn, 1923
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING
THE G9 IN PRO SHOPS CONT.
2001
Rank
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Source: Golf Magazine
1999
Rank
50
48
54
57
53
55
59
52
61
60
63
58
56
70
72
62
64
66
65
73
87
74
77
67
86
Course
Peachtree
Wade Hampton
East Lake
Nantucket
Congressional (Blue)
Valley Club of Montecito
Double Eagle
Colonial
Baltimore (Five Farms East)
Black Diamond
Interlachen
Canterbury
Shoal Creek
Wannamoisett
Kiawah Island (Ocean)
Pablo Creek
Yeamans Hall
Long Cove
Pasatiempo
Pete Dye GC
Salem
Baltusrol (Upper)
Plainfield
Blackwolf Run (River)
Olympia Fields (North)
Location
Atlanta, Ga.
Cashiers, N.C.
Atlanta, Ga.
Siasconset, Mass.
Bethesda, Md.
Santa Barbara, Calif.
Galena, Ohio
Fort Worth, Tex.
Timonium, Md.
Lecanto, Fla.
Edina, Minn.
Cleveland, Ohio
Birmingham, Ala.
Rumford, R.I.
Kiawah Island, S.C.
Ponte Vedra, Fla.
Hanahan, S.C.
Hilton Head Island, S.C.
Santa Cruz, Calif.
Bridgeport, W.V.
Peabody, Mass.
Springfield, N.J.
Plainfield, N.J.
Kohler, Wis.
Olympia Fields, Ill.
Architect
R. T. Jones Sr./Bob Jones, 1948
T. Fazio, 1987
Bendelow, 1910; D. Ross, Rees Jones
Rees Jones, 1997
Emmet, 1924; R. T. Jones Sr., Rees Jones
Mackenzie/Hunter, 1926
Weiskopf/Morrish, 1991
Bredemus, 1935; Maxwell
Tillinghast, 1926
T. Fazio, 1987
Watson, 1910; D. Ross, R. T. Jones Sr.
Strong, 1922
Nicklaus, 1977
D. Ross, 1916
Dye, 1991
T. Fazio, 1996
Raynor, 1925
Dye, 1982
Mackenzie, 1929
Dye, 1994
D. Ross, 1926
Tillinghast, 1923; Rees Jones
D. Ross, 1920
Dye, 1988
W. Park, 1922
THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING
THE G9 IN PRO SHOPS CONT.
2001
Rank
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Source: Golf Magazine
1999
Rank
69
82
79
75
96
91
80
83
92
76
88
81
84
78
94
93
98
71
89
90
Course
The Dunes
Kittansett
The Creek
Forest Highlands
Oak Tree GC
Hazeltine National
Firestone (South)
Myopia Hunt Club
Crooked Stick
Desert Forest
Sea Island (Seaside)
Yale University
Laurel Valley
Pumpkin Ridge (Witch Hollow)
Jupiter Hills (Hills)
Estancia
Butler National
Piping Rock
Bel Air
Newport
Indianwood (Old)
Stonewall
Troon GC
Bellerive
Pumpkin Ridge (Ghost Creek)
Location
New Buffalo, Mich.
Marion, Mass.
Locust Valley, N.Y.
Flagstaff, Ariz.
Edmond, Okla.
Chaska, Minn.
Akron, Ohio
So. Hamilton, Mass.
Carmel, Ind.
Carefree, Ariz.
St. Simons Island, Ga.
New Haven, Conn.
Ligonier, Penn.
Cornelius, Ore.
Tequesta, Fla.
Scottsdale, Ariz.
Oak Brook, Ill.
Locust Valley, N.Y.
Los Angeles, Calif.
Newport, R.I.
Lake Orion, Mich.
Elverson, Penn.
Scottsdale, Ariz.
Creve Coeur, Mo.
Cornelius, Ore.
Architect
Nugent, 1996
Hood, 1923
Macdonald/Raynor, 1925
Weiskopf/Morrish, 1988
Dye, 1976
R. T. Jones Sr., 1962; Rees Jones
R. T. Jones Sr., 1960; Nicklaus
Leeds, 1896/1901
Dye, 1964
Lawrence, 1962
Colt & Alison 1928; J. Lee, T. Fazio
Macdonald, 1926
D. Wilson, 1960
Cupp/Fought, 1991
G. Fazio, 1970
T. Fazio, 1995
G. & T. Fazio, 1974
Macdonald/Raynor, 1913
Thomas/Bell, 1926
W. Davis, 1894; Tillinghast, D. Ross
Reid/Connellan, 1928; Cupp
Doak/Hanse, 1993
Weiskopf/Morrish, 1986
R.T. Jones Sr., 1959
Cupp/Fought, 1991
APPENDIX:
Oakley / Fossil Strategy Overview
A MULTI-FACETED MARKETING STRATEGY HAS BEEN CORE TO OAKLEY’S BRANDING AND
ENABLED OAKLEY TO BECOME AN IN-DEMAND BRAND
Sports marketing has been essential to Oakley’s branded strategy
Oakley 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 pointof-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
AND CREATED AN EXPANDED DISTRIBUTION NETWORK
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
OFFERING
Fossil produces over three hundred different styles of watches in a line which continually changes
After 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 goods
In 1995,Fossil moved into the eyewear market introducing uniquely designed sunglasses creatively capturing
the Fossil image
In addition, the company began opening a group of outlet stores nationwide creating its own distribution
channel for discontinued items
In 1996, Fossil began opening several company-owned accessory stores
During 2000, Fossil introduced its first line of apparel, launching it both on-line as well as through several larger
format company-owned stores
APPENDIX:
Other
IMAGE POST PURCHASE IS ALSO IMPORTANT
Suunto Brand Peeling off the Wristop computer