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Title: SUUNTO PROJECT RAMPING UP SALES


1
SUUNTO PROJECTRAMPING UP SALES
  • June 2003
  • Vantaa, Finland

IBD team Marybeth Thomson Carlos
Ramirez Youngsuk Ko Shin Hamanaka
2
TABLE OF CONTENTS
  • Introduction
  • Communication Strategy
  • Distribution Strategy
  • Marketing Infrastructure
  • Programs and Tactics
  • Future Considerations
  • Appendix

3
INTRODUCTION
4
IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO
REALIZES THE IMPORTANCE OF TRANSITIONING FROM A
STRONG RD COMPANY TO A GLOBAL DESIRED SPORT
BRAND COMPANY . . .
  • 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 RD and marketing skills to
    surpass the transition phase
  • Suunto Achievements
  • Top technology company
  • Extremely knowledgeable RD group
  • Professional and ambitious team on board
  • Well establish brand name in the diving category
  • Successful introduction of products
  • Diversification into new markets

5
. . . AND TO SUCCESSFULLY FACILITATE THIS SHIFT,
THE COMPANY MUST UNDERSTAND THE END CUSTOMER WHEN
DEVELOPING MARKETING STRATEGIES
Consumer needs as the driver
  • RD
  • Suuntos Goals and Strategy
  • New Product Development
  • Customer Feedback
  • Distribution Decisions
  • Distribution Feedback
  • Communication Strategies
  • Market Research Analysis

Consumer
  • Pricing Decisions

6
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
Brand Awareness
Feel
Product Perceptions
Behave
Purchasing Decisions
Consumer Behavior
Building Consumer Behavior Profile
7
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
  • Store buyers interviews

Think
Brand Awareness
Communication Programs
  • Store visits

Feel
  • Suunto Product managers

Product Perceptions
  • Suunto survey

Distribution Programs
Behave
Purchasing Decisions
Consumer Behavior
  • Microsoft Research

Answers to who, why, how and where from the
customer perspective
SUUNTO MUST INTERNALIZE THIS PROCESS AND
CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILE
8
BY UNDERSTANDING WHO IS SUUNTOs 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

Median age of 30
High education level
Technology proficient
Active participant
Male dominated
Part of a community
Potential Customer
High average income
Influenced by heroes
Trend setter
Why do consumers desire a product? Performance
improvement Performance verification Direction
Safety Image Status
Think
How do consumers develop knowledge of
product? User advocates Role model influence
Independent research Retail salespersons
Advertising
Feel
How 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
Behave
9
COMMUNICATION STRATEGY
10
UNDERSTANDING SUUNTOS CURRENT POSITION IN THE
MARKET DEVELOPMENT CYCLE IS IMPORTANT TO
DESIGNING AN APPROPRIATE COMMUNICATION STRATEGY
Market Development Cycle
Focus on stimulating solid references and reviews
from the Early Adopters
SALES
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
11
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)
Illustrative

Mass media advertising
Guerilla Marketing
ProcterGamble
Puma
Spalding
Speedo
Brand Awareness
Reebok
-
-

Advertising Spending
12
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
  • 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

(1) Sports Industry Brand and Athlete Awareness
Study (2002) Source Sporting Goods Business
13
IN ADDITION TO TRADITIONAL DIRECT ADVERTISING TO
POTENTIAL CUSTOMERS, SUUNTOS 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
2. Advocate Outreach Focuses on building the
opportunity for advocates to reach out and
influence potential buyers
POTENTIAL CUSTOMER
14
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
  • 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
  • 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)

USER
ADVOCATE
  • 2. Advocate Outreach
  • Whistler/Blackcomb Partnership
  • Outdoor University
  • Association with various outdoor organizations
    (NSP, PSIA)

POTENTIAL CUSTOMER
15
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
Initiative
Description
Tactics
  • 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 Suuntos 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
  • Periodic newsletter with user tips, special
    discount offers, and information on sport related
    activities

Suuntosports. com
Post Purchase
  • 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

Pro Deals
Advocate Outreach
  • Coordinated lessons structured around Suunto
    products to improve performance

Suunto Pro Lessons
  • Trial programs allowing target users to use
    product for a limited amount of time

Trial Programs
User Conversion
  • Billboard placement on highways leading up to
    major ski resorts/National Parks

Web ads and billboards
  • Web ads focused on major sports-related sites and
    technology/travel sites

16
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,
Jul 31,
Oct 31,
Jan 31,
Apr 30,
Jul 31,
Oct 31,
Jan 31,
2001
2001
2001
2002
2002
2002
2002
2003
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
17
CASE STUDY PALM SUCCESSFULLY LAUNCHED ITS PDAs
WITH MINIMAL ADVERTISEMENT SPENDING, INSTEAD
RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH
AS MONEY-BACK 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
18
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.
19
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
20
SUUNTOS 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

21
KEY TAKEAWAYS COMMUNICATION STRATEGY
  • In order to reach a larger audience of potential
    customers, Suunto must pursue a more broad-based
    communication strategy
  • Many companies have successfully built brand
    awareness without substantial expense by using
    creative guerilla marketing tactics to facilitate
    word-of-mouth momentum
  • Suuntos 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

22
DISTRIBUTION STRATEGY
23
IN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS
NEEDED TO SERVE SUUNTOS 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
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
24
AN ANALYSIS OF SGBs ANNUAL REPORT OF THE TOP 100
SPORTING GOODS RETAILERS IS A USEFUL STARTING
POINT FOR ANALYZING SUUNTOS PENETRATION OF MAJOR
RETAILERS IN THE UNITED STATES
Sporting Goods Business Retail Top 100
Top 100 Sporting Goods Retailers 2001 Sales
Other includes specialty sports retailers for
biking, running, fitness equipment, marine,
soccer and team sports apparel. Source Sporting
Goods Business, June 2002
25
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 GALYANS SUGGEST
THE GENERAL SPORTS CATEGORY SHOULD BE EXPLORED
FURTHER
Top Ten General Sports Retailers
Top Ten Outdoor Specialty Sports Retailers
Excludes outlet stores Source Sporting Goods
Business, June 2002 Reflects 2001 store sales,
2002 Suunto sales
26
CURRENTLY, 90 OF SUUNTO USAs RETAIL
RELATIONSHIPS ACCOUNT FOR ONLY 27 OF WRISTOP
DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS
ACCOUNT FOR 41 OF WRISTOP DOLLAR VOLUME
Top five relationships include REI, Army/Air
Force, Galyans, Niche Retail, and Backcountry
27
GIVEN A SIGNIFICANT NUMBER OF SUUNTOS ACCOUNTS
ARE INDEPENDENT RETAILERS, SUUNTO MUST MONITOR
THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED
RETAILERS ALIGN WITH SUUNTOS BRAND POSITIONING
  • Monitoring programs such as that recently
    established with Franklin Resources are important
    to avoid any damage to Suuntos image, strategy
    and ultimately sales

MARMOT MOUNTAIN WORKS Store. 3049 Adeline Street,
Berkeley, CA
28
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 companys 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

29
OAKLEY CONTINUES TO EMPHASIZE CAREFUL MANAGEMENT
OF ITS DISTRIBUTION CHANNEL EVEN AS THE COMPANYS
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, Oakleys 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 stores
    offering and are required to carry a minimum
    level of sunglass inventory as well as obligated
    to buy at least 50 of Oakleys 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 Oakleys web site as
    well as tagging in Oakleys 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

30
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
Top Ten Specialty Golf Stores Sales (MM)- 1997
Golf Channel Retail Sales 1997
1,200
800
400
Other
Mail Order
Pro Shops
General Sport
Specialty Sport
Discount Stores
Department Stores
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
31
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
    Suuntos 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

32

OUR CHANNEL ATTRACTIVENESS MATRIX ALSO SUGGESTS
THAT TECHNOLOGY CATEGORY KILLERS REPRESENT A
POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE
TECHNOLOGY PROFICIENCY OF SUUNTOS TARGET
CONSUMERS AS WELL AS SUUNTOS 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

Category Killer Functions and Characteristics
  • Mass appeal and technology emphasis of the
    channel reflects target consumer of N-Series
  • Channel offers benefit for differentiating Suunto
    as a computer vis-à-vis watches
  • The channel also represents a good fit for
    Suuntos traditional target consumer profile
    described earlier as technology proficient

Right place for target market
33
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

Commissions
  • 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 Citys inventory policies
    and mass purchasing ensure that a given product
    is in stock and available

Product Supply
  • 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 Suuntos traditional product line is
    adequately portrayed vis-à-vis the non-sport
    functions of the N-Series

Brand Image
34
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
    Suuntos 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

35
MARKETING INFRASTRUCTURE
36
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
  • Decision process (gate) preparation
  • Continuous ideation for new market opportunities
  • Market analysis, internal interview, consumer
    research, etc

Brand/Product Management
New Product Planning
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
Suunto needs to develop its own organizational
structure to incorporate the key operational
functions
37
SUUNTO NEEDS TO STRENGTHEN ITS MARKETING
INFRASTRUCTURE COMPOSED OF INFORMATION, PEOPLE
AND PROCESS
Strategic Marketing Planning
Marketing Strategies
Branding
Pricing
Distribution
Communi-cation
Marketing Mix
Brand/Product Management
New Product Development
Market Research
Marketing Operations
Information
People
Process
Marketing Infrastructure
38
KEY INITIATIVES TO IMPROVE SUUNTOS MARKETING
INFRASTRUCTURE
Infrastructure
Description
Initial Assessment
Key Initiatives
Detail
  • 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?
  • 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)
  • Consumer DB
  • Information sharing culture/ organization
  • Assistant product managers (APM)
  • Marketing process improvement for HQ
  • End-user oriented implementation in US branch

Information
Marketing Information Management
People
Marketing Specialist Development
Global Marketing Process Enhancement
Process
Source GlobeSmart, Team Analysis
39
IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT
CONSUMER INFORMATION AND INFRASTRUCTURE TO SHARE
IT SHOULD BE ESTABLISHED
Information Creation Maintenance
Information Usage Sharing
Technology
Culture
Development of Consumer Database
  • 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

Spec
Information Sharing Culture/Organization
Comprehensive and Exhaustive Customer
Understanding
  • 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

Consumer database
RR
Financial database (product)
Non-normalized market data
  • Sales/profitability by product/retailer
  • Managed by finance/control function
  • 3d party market/ consumer research
  • Managed by PM

Spec
Spec
RR
RR
40
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 X-sport/Snow
PM for X-Marine/Golf
PM for Diving
PM for Compass
To strengthen market research by letting APM
focus on basic market research and analysis
APM
APM
............
To help product managers spend more of their time
on long-run significant tasks (e.g., NPD)
  • Support PMs works
  • Focus on basic market research
  • Rotate after 12 years

41
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
  • Strategic directions
  • Implementation guideline

Marketing Headquarter (Finland)
Local Branch (US)
  • Detail implementation planning
  • Market monitoring
  • Consumer/distributor info
  • 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
  • First-hand information source on US
    consumers/distributors
  • Planning and implementation of detail marketing
    activities
  • E.g., user group support

3-1
Marketing Process Improvement
End-user Oriented Implementation
3-2
42
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

43
MARKETING INFRASTRUCTURE ACTION PLAN
Items
Description
Goals
RolesResponsibilty
  • 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)
  • 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

Marketing Information Management
Marketing HR Improvement
Marketing Process Realignment
Suunto needs to consider creating a central
discussion board to supervise and make decisions
about the marketing infrastructure initiatives
44
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
    PMs 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 PMs on the detailed report requirement
  • PMs will analyze the consumer database for
    product management/ development

45
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

46
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 PMs 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/ PMs 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
    (PMs) and local branches
  • Roles of local branch as a local information
    source and implementation planning

47
PROGRAMS TACTICS
48
SUMMARY OF POTENTIAL NEW WRISTOP MARKETING
PROGRAMS TACTICS
Program
Description
Goals
Cost and Benefits
  • 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

Virtual Caddy
  • 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

Smart Sailing
  • 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

S6 Try Me
  • 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

Billboards
Web Ads
  • Banner ads in targeted web sites
  • Generate traffic to Suuntos 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
49
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
    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
50
G9 TRAINING AID PROGRAM TARGET GOLF ACADEMIES
51
G9 TRAINING AID PROGRAM INITIAL COST/ BENEFIT
ANALYSIS
  • Five instructors per Academy
  • Teaching 5 hours/ week
  • One player per instructor
  • 150 marginal cost per Wristop
  • One hour training for each instructor

52
G9 TRAINING AID PROGRAM A GOOD FIT WITH CURRENT
PRODUCT STRATEGY
Aiming to affect the instant satisfaction phase
Instant satisfaction
53
G9 TRAINING AID PROGRAM STAGED ROLL OUT
  • Roll out to the most prestigious schools in the
    US
  • Create Suunto Certificate program for schools
  • Pilot Test in Carlsbad Learn and build success
    stories
  • Roll out if successful in California

54
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
55
M9 TRAINING AID PROGRAM TARGET SAILING ACADEMIES
US Sailing Association
56
M9 TRAINING AID PROGRAM INITIAL COST/ BENEFIT
ANALYSIS
  • 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

57
M9 TRAINING AID PROGRAM STAGED ROLL OUT
  • Roll out to the ,most prestigious schools in FL,
    take advantage of the geographic concentration of
    the schools
  • Pilot Test in California Learn and build
    success stories
  • Roll out to to FL if successful experience

58
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 Suuntos 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 US35K to show the
benefits of the instant satisfaction of Suuntos
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)
59
S6 DEMO PROGRAM TARGET RESORTS SORTED BY SKI
EXPERTISE LEVEL AND STATE
60
S6 DEMO PROGRAM RELEVANT SNOW SPORTS DEMOGRAPHICS
Ages per Discipline
Skiers Gender per Discipline
2
3
4
5
7
13
12
15
27.60
17
39.80
40.80
17
20
50.00
26
24
20
21
15
72.40
31
15
24
60.20
59.20
15
50.00
6
19
8
8
18
10
9
8
Alpine
Snowboard
Cross Country
Snowshoe
Alpine
Snowboard
Cross Country
Snowshoe
7-11
12-23
18-24
25-34
35-44
45-54
55-64
65-74
75
Male
Female
Total Number of U.S. Snow Sports Visits (In
Millions)
Consumer Spending
787 Millions
18.1
12.2
12.1
663 Millions
663 Millions
7
5
Northeast
Southeast
Midwest
Rockies
Pacific
Apparel
Equipment
Accessories
Source National Sporting Goods Association, 2001
Sports Participation Study
61
S6 DEMO PROGRAM INITIAL COST/ BENEFIT ANALYSIS
62
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(sk
    i resort)/Great Smoky(park)/Olympic (parksnow),
    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
63
BILLBOARD ADVERTISEMENT FOCUS ON TOP SKI RESORTS
AND NATIONAL PARKS
Top 25 Ski Resorts in North America
(1)
(1) Estimated annual visitors 2.2M Source Skiing
Magazine (2002)
64
BILLBOARD ADVERTISEMENT FOCUS ON TOP SKI RESORTS
AND NATIONAL PARKS CONT.
Top 25 National Parks in US
Source National Park Service
65
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)

Source Ski Magazine, National Park Service,
Lamar Outdoor Advertising, Team Analysis
66
WEB ADS OVERVIEW
Objective To increase brand awareness among
target consumers
Target Top sport-related media/portal and
community sites
  • Rationale
  • Suuntos 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 (Suuntos 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
    Suuntos 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
67
WEB ADS TOP GENERAL SPORT PORTAL/ MEDIA SITES
Top 20 Sport Portal/ News /Media Sites
(1)
(2)
(3)
(4)
(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
68
WEB ADS TOP SPECIALIZED SPORT SITES DEDICATED TO
SUUNTOS TARGET SPORT SEGMENTS
Top 10 Segment-specific Sport Sites
X-sports
Snow Sports
Golf
Marine
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(6.200
3), Team Analysis
69
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
70
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

High
  • Other category-specific sites(1)
  • Computer/tech sites
  • Segment-specific sport sites

Traffic
  • Sport user group/club sites

Priority sites
Low
Sport-enthusiast
General
Consumer Target
(1) Entertainment, art, health care,
business/economy, science, etc. Source Team
Analysis
71
IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM
HAS THE POTENTIAL TO TAKE THE WHISTLER/BLACKCOMB
PARTNERSHIP FURTHER
Advocate Outreach
User Acquisition
Post-Purchase
Warranty Registration on Suunto.com
Strategic Partnership i.e. Whistler
Suunto Booth on site
S6 Demo Program
Opportunity for Suunto advocates to share
experiences with others. A PC may be placed for
on-hand demonstration.
Allow users to try out a product for limited
time. Quick-user guide showing how to use basic
functions.
Encourage users to post success stories through
giveaways
Purchase decision
Special discounts for lesson participants
Lessons utilizing WTC as performance enhancement
tool
Communication of upcoming events through
newsletters
Giveaway program to instructors
Work with instructors to incorporate WTC to
improve game. Encourage them to post measurable
results on Suuntosports. com
Nurture community develop-ment through periodic
communication with end-users
Suuntosports.com
72
KEY MILESTONES FOR RECOMMENDED ACTION ITEMS
Action Items
3Q 2003
4Q 2003
1Q 2004
2Q 2004
G9 Training Aid Program
Replicate to FL, PX, LA, TX
Replicate to the rest of US
Pilot in California
M9 Training Aid Program
Replicate to FL, NY, TX
Replicate to the rest of US
Pilot in California
S6/X6 Try-Me Program
Communication
Replicate to the rest of US
Pilot in California
Billboards Ads
Start planning
Start w/ launch of new X-sport/Snow product
Web Ads
Start planning
Effectiveness evaluation
Start w/ launch of N-Series
Marketing Information Management
Develop. finish
Requirement study/design finish
System Open
Marketing HR Improvement
Marketing infrastructu
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