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K2 Sports: K2 Skis Brinn Hovde May 22, 2012

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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

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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 , 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 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 . 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 , Volkol, , Zoot, Tubbs, Fotoball

USA, , 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 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. No matter what type of terrain a skier is seeking, it can provide a ski for those conditions. Because of this the current customers range throughout all abilities, age and both genders. The price range for K2 skis are fairly comparable to most recreational skis so it is likely that the current market of skiers displays a wide use of K2

Skis. The Local Market Analysis reveals that there is a high population of skiers in western

Washington, the central west coast of California, Alaska, Colorado, Utah and Wyoming so it can be assumed that there are a high number of current customers in these locations. Since these are all locations in the western United States, there could also be current brand loyalty to K2 Skis because of its origins in western Washington.

Skiing is a seasonal sport so the purchase of skis is dependent on the weather and geographical location. Skis will be in higher demand during the winter and as an essential purchase as part of the sport ski will continue to be purchased. The skis can be purchased through a local retailer, online retailer, or directly from K2Skis online.

Target market The target market that I selected is female skiers ages 20 – 34 (young adults) who live in Washington, Oregon, California, Alaska, Montana, Utah and Colorado. These females are single, living in a non-family household and have a disposable income that they can spend on themselves. As females continue to emerge as athletes with increased interest and participation, they will continue to expand the sporting goods market with their disposable incomes.

This target market consists of a high number of young achievers within the age group of young adults (Local Market Analysis, 2011). These young adults can be classified as strivers 9 because they have limited resources but still have an understanding of this primary motivation according to the VALS model. Young adults are also environmentally conscious and are interested in products that are eco-friendly. According to the Local Market Analysis tool (2011), young adults are willing to pay more for this attribute. This is also a non-traditional age group.

According to the Local Market Analysis (2011), young achievers like to stand out in society and be seen as unique. In the context of the VALS model this could classify the target audience as makers because they are seeking individual self expression but are also faced with limited resources. As young adults, low price and high quality are going to be conflicting benefits sought by these consumers. Disposable income is likely to be minimal, however social status is highly valued. This leads to the desire for a high-quality product that also performs well.

Product SWOT analysis Strengths One strength of K2 Skis that will lead to strong sales within this target market includes its local origins. It also has a reputation of creating quality products that are reliable and include some skis that are environmentally friendly. The amount of features and options that are offered to fit all skiers provides K2 Skis as an option for everyone. It also owns two other ski manufactures.

Weaknesses Price point is slightly higher than some recreational skis because of the attention to quality and detail. This may deter a first time ski buyer from choosing K2 Skis therefore risk the development of brand loyalty.

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Opportunities As previously stated, women continue to become more involved in sports and female skiing icons are becoming more common as an extreme sport which has the potential to reach more females as well. For such a long time the mountain sport industry saw skiers turn to snowboarding so there is potential to either have these people return or convert to skiing.

Threats Other winter sports, especially snowboarding are a threat because it would keep K2 Skis from ever having the opportunity to reach people who are not, or don’t desire to be skiers.

Additionally, other ski manufactures are a clear threat because there are a significant number of brand choices when it comes to purchasing skis.

Advertising Objectives 1. Primary objective (conviction): Promote belief in 75% of skiers that K2 Skis have superior quality and technical features that allow the most enjoyable ride and feel.

2. Secondary objective (desire): Persuade 75% of the believers to desire the opportunity to demo a pair of K2 skis next time they visit a mountain.

3. Tertiary objective (action): Convince 75% of those desiring to follow through and demo K2 skis.

Advertising plays a key role in leading the target market through the steps it takes to eventually have them purchase the product, which is the primary measure of success in a business. These objectives lead the target market through believable mental processes as consumers. I didn’t choose awareness as an objective because most skiers are probably already 11 going to be aware of the brand so it is more important to focus on getting people who are already aware of their options to believe that K2 Skis is the best. This is the best way to get this market to want to try the skis and crave the opportunities and feeling that they will offer on the mountain. These are traits that are important to all skiers so this desire will then lead them to take action and demo the skis. It’s a logical process that is believable and reasonable to obtain through the advertising that I will be creating for this campaign.

Creative Brief

Basic opportunity

Within the ski manufacturing industry there is no particular leader when it comes to selecting a favorite for female skis. When a female is presented with an opportunity to buy a new pair of skis, there isn’t a company that comes to the forefront of her mind. Typically female skis are an afterthought to men’s skis. Women continue to increase in sport participation and are making a stronger presence in action sports such as skiing so the market for female skis is going to increase. There are specific motions being initiated to also encourage female participation in skiing (Ski and Snowboard, 1996). If female skis are going to be in higher demand, it would be to K2 Skis best interest to become known to this audience as a women’s ski manufacturer.

Communication objectives

1. Primary objective (conviction): Promote belief in 75% of skiers that K2 Skis have superior quality and technical features that allow the most enjoyable ride and feel. 12

2. Secondary objective (desire): Persuade 75% of the believers to desire the opportunity to demo a pair of K2 skis next time they visit a mountain.

3. Tertiary objective (action): Convince 75% of those desiring to follow through and demo K2 skis.

Target audience

The target audience is female skiers ages 20 – 34 (young adults) who live in Washington,

Oregon, California, Alaska, Montana, Utah and Colorado. The main demographics that I specified are sex (females), age (20-34), and household type (nonfamily). The target audience is ambitious and in addition, she is environmentally conscious and is interested in products that are eco-friendly and is willing to pay more for this attribute. She 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. As a young adult, low price and high quality are going to be conflicting benefits that she seeks. Disposable income is likely minimal, but social status is also an important variable in her eyes. This leads to the desire for a high-quality product that also performs well. Performance 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.

She views skiing as more of a lifestyle than a form of exercise and recreation, which exemplifies the fact that status is crucial.

Ultimately these are female skiers who are in need of skis. Beyond this primary demand, she desires an attractive ski that is high-quality but still reasonably affordable. She would find an earth-friendly ski attractive and would be willing to pay slightly more for this feature. She will 13 also seek a ski that visually stands out from the rest. The skis are a part of her image and status on the mountain and it needs to appeal to her in this regard.

Brand personality

K2 skis have a number of various styles specifically designed for women with the same considerations given to their men’s line. K2 Sports as a whole is passionate about the sports that it supplies gear for and this same passion extends to K2 Skis. It seeks to provide a unique, true experience for its users through both product use and lifestyle (K2 Sports, 2012). K2 Skis is reliable and authentic while still being daring, energetic, creative and moderately rebellious. The tone of a created ad will successfully reach the target audience if it evokes a reasonably feminine message that is empowering to the female skiers. She will be attracted to a message that conveys the skiing and mountain lifestyle through action, revolution and originality.

Benefits to communicate

K2 Skis offer a wide selection of styles for the female skier. There are high-performance skis for every level of skier dependent on what type of terrain she seeks to ride. The skis range in technical variation to conform to her physical specifications and mountain variability, and visual style. K2 Skis also offer a ski that has a “green” core for the skier who is environmentally conscious (Ski Selector, 2012).

Benefit support

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 14

70mm – 140 mm depending on the model of ski. These skis utilize K2 Ski’s bioflex core and there are five different rocker options available between the various models which include: all terrain, catch-free, jib, powder, and speed. 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. One of the ski models has a blended aspen, bamboo and paulowina core, which boasts a smaller environmental impact (Ski

Selector, 2012).

Additional suggestions

Female skiers do not want to be viewed as any less capable than males when it comes to performance on the mountain. In addition to this, they don’t want to be considered a secondary priority to male skiers. The target audience wants to be acknowledged for her ability to conquer terrain and obtain a presence in the mountain-oriented culture and lifestyle.

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Media Plan

Media Objectives Audience objectives The audience that I want to reach is female skiers ages 20 – 34 (young adults). The main demographics that I specified are sex (females), age (20-34), and household type (nonfamily).

The target audience is ambitious and in addition, she is environmentally conscious and is interested in products that are eco-friendly and is willing to pay more for this attribute. As a young adult, low price and high quality are going to be conflicting benefits that she seeks. This leads to the desire for a high-quality product that also performs well. She views skiing as more of a lifestyle than a form of exercise or recreation, which exemplifies the fact that status is crucial.

Message-distribution objectives

1. To reach 390,000 members of the target audience per each month of the campaign.

2. To primarily reach the target audience who live in Washington, Oregon, California, Alaska,

Montana, Utah and Colorado.

3. To deliver the message for a total of one year, starting in September.

4. To attain 15 exposures per audience member throughout the campaign.

Media Strategy

Classes of media to use in the campaign

For this campaign I am selecting magazines and Internet sites as two classes of mass media. Both of these will be effective outlets for this campaign because they are refined fairly 17 closely to the target audience of skiers. There are no magazines that target female skiers specifically, so this is the most that the target audience will be able to be narrowed in this circumstance. The women that subscribe to relevant magazines and visit related online sites, are already skiers so they are in the market for buying skis or developing a brand image of K2 Skis that can influence their decision later on when it is time for them to buy new skis. As young adults, this target audience is active in the use of both outlets as well. They are comfortable navigating the Internet and may also have extra time because they are in a non-family environment, which promotes leisure reading and Internet use.

Media vehicles used in campaign

The first media vehicle that I will use for this campaign is Ski magazine. Ski started in

1936 so it has solidified its market share as a national sport and lifestyle consumer magazine. It has a significant number of readers with a most recent reporting of 1,496,000. Of these readers,

32% are females, 41% are between the ages of 18 and 34, 45% are single and 64% don’t have children, which make this an appropriate publication for the target audience. However, 62% of readers have an income over $75,000, which may not be a very accurate match to the target audience since young adults range so widely in ages and career development. Other statistics that exemplify traits that the target audience shares are that 88% of readers said they are willing to stick with a brand that they like, which is important when targeting young adults as they are forming brand loyalty. Also, 68% said they’re willing to pay more for quality, which is important as well because K2 skis are priced slightly above average, but are also known for their superiority. 18

The second media vehicle that I will use is the website Ski Resorts.com, which is a site that is focused on skiing as a winter lifestyle. This site will be a good fit for the target audience because 41% of the viewers are female, which is higher than other ski related media outlets.

Additionally, 25% are ages 18-34 and of the 200,000 monthly viewers 50,000 are “uniques” with an average page viewing time of three minutes so there will be a consistent flow of new advertisement views over the course of the six month campaign.

Ad size

Ski: Full page color

I am electing to print this as a full page because the poster style layout is what resonates the best with the viewer. Color is important for this ad because it will be depicting some of the features of the skis, which is important to see as realistic as possible. Also, the target audience is aware and conscious of how the design looks since it will be a contributing factor to their identity on the mountain.

Ski Resorts.com: 160 x 600 skyscraper

Based off of my time on the site I felt that the skyscraper ads stood out the best because a lot of the design elements of the page itself were horizontal.

Positioning of the ad

Ski: ROP

As a ski magazine the ad will be relevant no matter where it is placed throughout. Since it will have some details about product benefits and features I think it is better to place it within the 19 magazine versus the second cover because the viewer will already be reading the editorial so they might be more likely to read the ad copy as well.

Ski Resorts.com: Since I will be purchasing a skyscraper it will run vertically on the right hand side of the website’s homepage. (Same reasoning as positioning).

Schedule of insertions

Ski: The ad will run six times over the course of the year because it is a biweekly magazine. The ad will start running in the September issue when the campaign begins because according to its editorial calendar this is its product issue.

Ski Resorts.com: The ad will run for six months starting in September and concluding in March.

This is not going to run the full extent of the campaign because it is less likely that the target audience will be visiting a website to plan any ski trips during months other than these. Also, based off of the estimated rates that I found, it wouldn’t be worth the value to accept the additional discount to advertise for a full year.

Budget

Media Ad Cost per Frequency Total cost Audience CPM vehicle size/length insertion for size schedule Ski Full page 1x= 6 $2,976,000 1,496,000 x $55.26 magazine full color $501,190 6= 6x= 8,976,000 $496,000 Ski 160 x 600 1 month= 6 $2,250 200,000 x $0.30 Resorts.com skyscraper $400* 6= 6 month = 1,200,000 $375* Totals $2,978,280 10,176,000

*http://www.acgih.org/resources/web_adv_rates.pdf 20

Reference List

Advertise with us. Retrieved from http://skiresorts.com/sites/default/files/SkiResortscom2009- 2010MediaKit.pdf

Company search: K2 sports In Business & Company Resource Center Gale Databases. Retrieved

from http://tinyurl.com/7qh7oxp

Covell, J., & Galens, J. (2007). K2 inc. In J. Pederson (Ed.), International Directory of Company Histories (pp. 206-211). Detroit: St. James Press. Retrieved from http://tinyurl.com/86ap85c

Harrison, J. (2004). Busy buyer K2 targets top sports brands. Mergers & Acquisitions: The Dealermaker's Journal, 39(9), 27. Retrieved from http://tinyurl.com/7hlmd6k

K2 sports. (2012). Retrieved from http://www.k2sports.com/

Local market audience analysis. In (2011). SRDS Des Plaines, Illinois: Retrieved from

http://www.claritas.com/SRDS/home?user_id=11223036;fK4mHsW4XjC3&auth_token

=Cr40E1Twm2SPhoNnbrxYmJW6oaU=

Norman, J. (2009). K2 sports buys Zoot for undisclosed sum. Bicycle Retailer & Industry News,

18(2), Retrieved from http://tinyurl.com/7mcobff

Pearce, L. (2011). Sic 7999: Amusement and recreation services, not elsewhere classified In

Encyclopedia of American Industry (6 ed. pp. 2855-2857). Detroit: Gale. Retrieved from

http://tinyurl.com/7qft2yz

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Pearce, L. (2011). Sic 5091: Sporting and recreational goods and supplies In Encyclopedia of

American Industry (2 ed. pp. 2064-2067). Detroit: Gale. Retrieved from

http://tinyurl.com/7nceybu

Rossignol skis. (2012). Retrieved from http://store.rossignol.com/category/120345/SKIS

Ski selector. (2012). Retrieved from http://k2skis.com/skis/womens

Ski mag media kit . (2012). Retrieved from http://www.skinet.com/ski/mediakit

(1996). Ski and snowboard report. Women's sports & fitness, 18(8), Retrieved from

http://web.ebscohost.com.ezproxy.linfield.edu:2048/ehost/detail?sid=dc41a709-f742-

4d71-bf9d

6bd3bd413e04@sessionmgr11&vid=2&hid=15&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ

2012 website advertising rates. Retrieved from

http://www.acgih.org/resources/web_adv_rates.pdf

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