1 K2 Sports: K2 Skis Brinn Hovde May 22, 2012
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1 K2 Sports: K2 Skis Brinn Hovde May 22, 2012 2 Table of Contents Target Market Analysis………………………………………………………....3 Product Situation Analysis…………………………………………………...…5 Advertising Objectives…………………………………………………………10 Creative Brief…………………………………………………………….…….11 Creative Concept…………………………………………………………….…15 Media Plan …………………………………………………………………….16 Reference List………………………………………………………………….20 3 Target Market Analysis The product category that is in primary demand in this campaign is sports and recreation equipment. Consumers within this category are athletic, ambitious, and active. Both K2 Sports and K2 Skis both fall into this category of consumer products, however, K2 Skis’ specific manufactured skis are the secondary demand in this case. The skis that it produces are in a marketplace that is demanded by skiers of all abilities. The specific target market that I am seeking to reach through my advertising campaign is female skiers ages 20 – 34 (young adults) who live in Washington, Oregon, California, Alaska, Montana, Utah and Colorado. The main demographics that I am specifying in this campaign are sex (females), age (20-34), and household type (nonfamily). I selected this target market because females are continuing to emerge as athletes with increased interest and participation. This provides an expanding market that is also young and single, allowing them to spend disposable income on personal recreational goods. Relevant behavioral variables in this case include purchase occasion and benefits sought. Since skiing is a seasonal sport, the purchase of skis is dependent on the weather and geographical environment in relation to the season. Clearly skis will be more highly sought during the winter and are an essential purchase as part of the sport. Skiers in this target audience are going to be seeking a high-quality product at an affordable price, which also contributes to the enhancement or preservation of their status on the mountain. In addition, young adults may be less likely to have developed deep-rooted brand loyalty. This means they are willing to try new brands and experiment granting K2 Skis the opportunity gain new customers that have potential to become loyal through a positive brand experience. 4 The defined location of the target audience has a high population of young achievers, especially in western Washington and the central west coast of California (Local Market Analysis, 2011). They could be classified as strivers because they are young adults so they have limited resources but they still have an understanding of this primary motivation. Additionally, this group of young achievers is environmentally conscious and is interested in products that are eco-friendly and are willing to pay more for this attribute. This would place them higher on the VALS chart as thinkers because this is an ideal for them and having access to these products means higher resources. This is also an age group that is non-traditional. According to the Local Market Analysis (2011), young achievers like to stand out in society and be seen as unique. They also are non-traditional in the sense that they rely more heavily on magazines as a news outlet than television or newspapers. This could classify the target audience as makers because they are seeking individual self expression but are faced with limited resources at the same time. These psychographics are all true to the target market’s principles while maintaining status within this market. As young adults, low price and high quality are going to be conflicting benefits sought by these consumers. Disposable income is likely to be scarce, but social status is also sought. This leads to the desire for a high-quality product that also performs well. Performance claims and style are both key factors to the success of ski sales (Pearce, 2011). Pearce also claims that style is something that can readily set one ski apart from the next. Extreme sports such as skiing are viewed as more of a lifestyle than a form of exercise and recreation to this target market, which exemplifies the fact that status is crucial. Skiing is more or less popular due to accessibility depending on geographic location. The Local Market Analysis reveals that there is a high population of skiers in western Washington, 5 the central west coast of California, Alaska, Colorado, Utah and Wyoming. In addition to the other demographic, behavioral and psychographic traits, Washington, Oregon, California, Alaska, Montana, Utah and Colorado were designated as the targeted states. I found the Local Market Analysis tool to be the most useful in the process of identifying my target market. It allowed clear comparisons that were customizable and abundant. It was able to provide relevant information for the majority of the components that built up the research used to determine the target market. Product Situation Analysis The Company Prior to the creation of K2, Bill Kirschner of Kirschner Manufacturing Co. had been using fiberglass to create animal splints and dog cages. On Vashon Island in Washington in the late 1950s Kirschner used a pair of borrowed skis as a pattern to create fiberglass skis, which proved to be superior to the aluminum skis that he currently owned. In 1964 these fiberglass skis were starting to be sold through Kirschner Manufacturing and by 1967 K2 Corporation was founded. This was a revolutionary change for the skiing industry and K2 Corporation overtook Head, the creators of the aluminum ski revolution, as the popular choice in ski manufacturing. Now under the name K2 Sports, it sells a variety of additional products such as snowboards, snowshoes, bikes, in-line skates, and recreational apparel and accessories. It also owns many different companies including Rawlings, Volkol, Marker, Zoot, Tubbs, Fotoball USA, Marmot, Ex Officio, and Stearns, to name a few (Covell & Galens, 2007). A mission statement couldn’t be located, however at the time of purchase Zoot’s chief executive officer 6 Brian Enge said that both Zoot and K2 focus on “great products and great service” (Norman, 2009). The Product Product description and positioning Due to the nature of the product as sport equipment, there are a significant number of relevant features and benefits in K2 Skis. K2’s 2012 women’s skis are divided into three main categories: the Supermodels for all mountain skiing, Backside Adventure for backcountry skiing and the Factory Team for park riding. The skis range in length from 143 – 17 4 inches and the waist of the ski ranges from 70mm – 140 mm depending on the model of ski. All women’s skis use a bioflex core that K2 has created, which is a combination of spruce in the tip and fir in the core of the ski. This allows for increased maneuverability while maintain stability and a light weight. There are five different rocker options available between the various models which include: all terrain, catch-free, jib, powder, and speed. This allows the skier to select a ski more compatible to the type of terrain that she wishes to pursue and makes skiing feel more effortless. All of the ski models can be purchased with or without bindings. If bindings are selected K2 will include the Marker K2/ERS System bindings that have been designed specifically for the female skier for a true fit. The Supermodels are designed specially or all terrain skiing. They are constructed using two sheets of lightweight titanal metal laminate around the bioflex core. This along with the various side cut options create a lightweight ski that has responsive carving capabilities. The Backcountry Adventure skis use a triaxial fiberglass braiding pattern as well as an additional bio core. This is a unique core because it is a blend of aspen, bamboo and paulowina, which boasts a smaller environmental impact. Another feature unique to this ski is the Snophobic top sheet that 7 repels snow from the surface of this ski. Since this ski is intended for use in deep snow this feature is helpful because it keeps the weight of the snow that accumulates on the ski to a minimum. The Factory Team skis utilize a twin tip feature that allows skiing in both directions. Thick steel edges are resistant to cracking, which is important for park riding where skis are exposed to a lot of hard, direct contact with surfaces. They have been shaped with a directional taper and use its triaxial fiberglass braiding technique for maximum ease, forgiveness and responsiveness. With these different models of skis that cater to various terrain K2 is serving the varying uses that any recreational skier would have. The features that these skis boast are designed uniquely for K2’s skis, and these skis have been specifically designed for females. The stated benefits affirm the quality and strong reputation as an industry leader that excels in quality that K2 has maintained since its origin. The price of the skis reflect their quality, however they are still reasonably prices within the recreational ski market. The three different models of skis range in price from approximately $300 - $700 (Ski selector, 2012). As a comparison, Rossignol, which is another popular ski manufacturer, sells women’s skis in a price range from $400 - $800 (Rossignol skis, 2012). Product sales In 2000 K2 Sports sales exceeded $64 million and there were 450 employees. K2 Sports is owned by Jarden Corporation’s outdoor solutions segment. Jarden’s annual sales in 2011 was more than six billion dollars (Company search: K2). According to Joan Harrison (2004), K2 Sports’ sales in 2003 were over $718 million with earnings of $11.4 million. K2 Sports is known for its acquisition of other businesses but only those that are already known for being ranked first in market share or that have the potential to be under its ownership. 8 The Market Current customers K2 Skis serve skier of all recreational ability.