Growing the
Snow Sports Industry:
Marketing Analysis and Strategy for
Breaking Down the Barriers
SPONSORED BY:
PREPARED BY: FOCALPOINT AND Z-SPORT
May 2000
Dear Colleagues:
The snow sports industry’s ability to market itself efficiently and be profitable has been a
challenge. We all know there are various reasons for this and all of them are valid. A
careful review of the industry’s national marketing projects for the last 20 or so years
pointed out a startling revelation. Perhaps we really didn’t know enough about our
targets, and for that matter, who to target.
In May 1999, the SIA board of directors made a major decision to invest the necessary
amount of money to do a market research study that would provide information and
knowledge that could be incorporated into the individual marketing planning of
companies in all segments of the industry.
We hired Sergio Zyman, the former chief marketing officer of Coca-Cola. His mission
and that of his colleagues at Focalpoint and Z-Sport was to identify the handful of
potential high-value, but under-performing customer segments that lend themselves to
snow sport participation; to develop a strategic framework that will unleash the potential
in each of these segments and finally to develop powerful messages and tactics that will
motivate the targets.
The program is designed to help define market segments’ interest in snow sports. It is
not intended to create an expensive advertising campaign. By conducting this program,
SIA is providing the industry with a framework of strategic information and resources
that each industry member can incorporate into their own existing programs, but that few
of us could afford to do on our own.
The challenge to you is to put it to good use. Here’s what one industry leader suggested
to get started: (1) Provide this report to all your marketing people and have them review
it. (2) Then assemble everyone in a room and compare what you are currently doing to
what the report suggests. It’s surprising how little changes in words, illustrations, etc.,
can impact the effectiveness of a campaign. Good luck.
Respectfully,
David Ingemie
President
SnowSports Industries America
TABLE of CONTENTS
Introduction…………………………………………………………………………..….. 4
The Challenge We Face ……………………………………………………………….... 5
Project Methodology and Approach …………………………………………………..... 6
Industry Myths and Facts …………………………………………………………..…… 7
Key Findings ……………………………………………………………………..……. 13
A New Approach to the Market ………………………………………………….……. 25
Critical Strategies for Success ………………………………………………………… 29
Tactical Rules of the Road ……………………………………………………….…… 31
The Bottom Line ……………………………………………………………………… 32
Attachment I: Acknowledgements ……………………………………………………. 33
Attachment II: Inventory of Research Materials ……………………………………… 34
Attachment III: Research Samples ……………………………………………………. 35
Attachment IV: Tactical Matrix………………………………………………………… 1
Attachment V: SIA Las Vegas 2000 Presentation……………………………………… 1
The information contained in this report is the property of SnowSports Industries America
(SIA). It cannot be reproduced or extracted in whole or part in any way without the prior
written permission of SnowSports Industries America
SnowSports Industries America
Introduction
The same winds of change that are buffeting America’s largest and most successful
corporations, from Sears to AT&T are effecting the snow sports industry as well.
•
Intense competition from many new directions – soccer leagues, basketball, new
leisure activities for families, and, even virtual recreation on the Internet.
•
A fragmented market with tougher consumers – who want greater quality products,
better service, customized to their needs … and all at a great price.
•
A glut of messages – as every brand competes for share of mind through a plethora of
new media channels including niche print, 500 cable channels, and infinity.com.
•
A new economy – with change at the speed of light, consumers with instant access to
market information and limitless product choice build and destroy powerful brands
virtually over night.
The snow sports industry is not exempt from these forces, and must adopt the new
marketing strategies that are essential to success in this modern world. This project was
designed to identify specific, actionable marketing strategies and tactics that could be
adopted by the snow sports industry to break through to success.
Our research observations and strategic recommendations address what we believe are
the four major steps that businesses must take to succeed in this new world.
1.
Know the customer – understand their needs, desires and aspirations,
how they are changing and how they differ based on the consumer’s
demographics, psychographics and purchase behavior.
2.
Know yourself – understand how the snow sports industry is
perceived by its consumers, and how you might broaden that
meaning, to meet those consumer needs better than your competition.
3.
Brand your differences – establish the snow sport industry’s powerful
points of differentiation, that make it stand out, emphasizing its unique
benefits.
4.
Focus your marketing efforts like a laser beam – targeting
marketing resources with discipline and insight, aiming marketing
messages and offers to consumers with the greatest potential value.
The snow sports industry faces a number of significant challenges, but it is blessed with
extraordinary opportunities as well. This report is designed to shed some light on those
challenges and opportunities … with recommendations on which direction to head.
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SnowSports Industries America
The Challenge We Face
With the new economy moving at light speed, we in the ski industry are falling behind.
Skiing days and sales are flat, and snowboarding growth -- which looked like a panacea -is beginning to flatten out. At the same time, we see that the baby boom generation, the
enormous population cohort which has driven American industries from fast food to
retirement planning, is now beginning to reach the “retirement age” for active
participation in skiing and snowboarding.
Most alarming, our industry sales are “flat,” during the most robust economic period of
the past many decades. This concern is born out by our research finding that while
industry sales and participation may not be declining, we are losing share of leisure
expenditures. That means our competitors, from soccer, to cruises, to the Internet, are
growing with the economic boom while we remain stalled.
If those facts were not sobering enough, the snow sports industry is fragmented in its
response to these changes, with relatively limited marketing resources and a lack of a
clear understanding of this marketing problem or its possible solution.
While we cannot transform our industry into a single, monolithic force in the
marketplace, our hope is that this SIA study will provide a clear, unified understanding of
the problem we face collectively, and identify some actionable solutions. If this SIA
study provides the strategic focus to encourage the industry to turn all of its guns on this
problem, the snow sports industry will win in this new marketplace.
But for our industry to win, we must step up to the challenge and change our approach to
the marketplace in several fundamental ways. We must:
•
Develop a unified understanding of the marketing problems and opportunities
– so that our industry of many voices has collective power.
•
Identify the market segments that hold the greatest “acceleration potential” –
because business can no longer afford to “shot gun” its marketing messages,
we must “rifle shot” our messages to the most receptive audiences.
•
Focus our marketing resources on those productive audience segments –
where our dollars will have the greatest impact in increasing snow sports
interest, participation and sales.
•
Apply those resources in an integrated, efficient manner – making every
marketing dollar work harder, because waste is deadly.
There is nothing magical about the marketing challenges we face, or the steps we need to
take to succeed. These are the same challenges facing virtually every company and
industry that is struggling to survive and prosper in this new age. However, like those
other businesses, we must act now.
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SnowSports Industries America
Project Methodology and Approach
With this need for change as a compelling context for our work, we began this research
project with two commitments:
1.
To not ignore history – but to review the research and critical insights that
we have obtained from literally dozens of studies conducted by the
industry over the past decade; and,
2.
To make this information actionable – not another academic study to put
in a bookcase, but a practical marketing document that can be used
throughout our industry.
Therefore, this marketing analysis and strategic development process followed a
disciplined series of steps in which we:
•
Reviewed and analyzed existing quantitative and qualitative industry research
– pulling together from resorts, retailers and manufacturers, studies that have
been conducted over the past two decades, on the marketing situation,
consumer interest and purchasing behavior, to develop a “baseline” of key
findings which would guide our new inquiries.
•
Developed strategic hypotheses about our marketing problems and
opportunities – which grew out of our analysis of previous research projects,
to focus our future research inquiries toward actionable insights.
•
Conducted focus groups to explore these hypotheses and to guide our
quantitative research – involving eight groups of both skiers and boarders
from the “avid” to “potentials,” with two groups each in Boston, Chicago and
Seattle. These conversations with our target audiences provided us with a
depth of understanding of how these “consumers” see our industry.
•
Conducted quantitative research to develop key baseline data and validate
hypotheses – 800 telephone interviews with skiers and boarders that included
self-rated “advanced/expert,” “intermediate” and “beginner” skiers and
boarders, plus another segment of “lapsed” skiers. This scientifically selected
sample provided us with hard data to support or debunk our focus group
insights.
•
Synthesized all of this information into a single analysis and set of strategic
marketing recommendations – in which we used the historic research
information coupled with our focused qualitative and quantitative research to
provide a set of relevant findings and actionable steps that can be taken to
capitalize on these findings.
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SnowSports Industries America
Industry Myths and Facts
This marketing report is all about the need for change. The critical first step on the path
of change is to explode the industry myths that bind us to the obsolete remedies of the
past. Accordingly, we have extracted from this research project a few selective findings
that debunk five widespread industry myths that are holding us back.
Myth #1:
Most skiers/snowboarders aspire to be “extreme” or most
demanding aspect of the “sport.”
Fact:
The “average” skier/boarder is less ambitious, and seeks the
more intrinsic rewards of a wholesome, lifestyle “activity.”
In listening to participants in our focus groups we began to suspect that the
overwhelming majority of snow sports participants did not reflect the
preponderance of snow sports imagery. Our suspicion was supported by
the quantitative research when we asked the question “What benefits to
skiing/snowboarding do you find most appealing?”
Most Appealing Aspects
Freedom/Getting Away
64%
Being with Family/Friends
59%
Being Outdoors
55%
Exercise and Athleticism
46%
Excitement/Thrill
45%
Challenge and Skill
42%
Travel/Scenery
38%
0%
10%
20% 30%
40% 50% 60%
70% 80%
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
As you can see from this chart, the softer side of snow sports,
“Freedom/Getting Away,” “Being with Friends and Family,” “Being
Outdoors,” was far more popular with consumers of all levels than was
“Excitement/Thrill” or “Challenge and Skill.”
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SnowSports Industries America
We then did a content analysis in which we reviewed scores of print
advertisements and web site material, which included trade publications,
broader periodicals and web sites in the areas of travel, vacations, etc. As
you can see from the chart below, the content of our messages portrays the
snow sports industry as overwhelmingly “Extreme/Air,” “Male”, and
“Under 30” years of age. Further, the critical marketing segment,
families, is almost entirely left out of the imagery.
How We're Portraying Ourselves
Print and Web Content Analysis
Print & Web
Editorial
Equipment
Resorts
Extreme/Air
77%
87%
60%
Male
83%
90%
67%
Under 30
85%
98%
86%
Family
5%
0
25%
Source: 1999 Magazine/Web Content Analysis by Focalpoint for SIA
Myth #2:
The dominant barrier to increased skier/boarder participation
is high-cost.
Fact:
The motivations for, and barriers to, skiing and
snowboarding, involve a more complex value proposition - including time, quality of experience, competitive interest and
proficiency.
This myth exists in many industries and many product categories because
it is the first thing that you expect; and, often consumers will volunteer
price or cost as barrier as their first, most superficial response. But in this
research, we dug deeper, and discovered that “expense” was well down
the list of “negative” aspects of skiing and snowboarding.
As the chart on the following page reflects, in asking consumers to rank
the most “negative aspect of skiing/snowboarding,” barriers such as
“Nobody to Go With,” “Not Fun Unless Good,” and “Hard to Learn”
towered above the usual suspects: “Lift Lines” and “Expense.”
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SnowSports Industries America
Negative Aspects of Snow Sports
Nobody to Go With
48%
Not Fun Unless Good
42%
Hard to Learn
42%
Falling Down
38%
Risk of Injury
32%
Weather
28%
Getting There
27%
Hassle
25%
Lift Lines
22%
Expense
21%
0%
20%
40%
60%
80%
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
Myth #3:
There is a fruitful marketing opportunity with nonskiers/snowboarders particularly among “under-served”
populations who have never skied at all.
Fact:
These misnamed “potentials” not only must be lured to the
slopes, but they carry the additional marketing burden of
needing to be sold on winter vacations, cold weather activity
and adopting an activity outside their peer group.
It is all too common in marketing to look at your current customers and
assume that we have done such good marketing, that we have already
reached everyone who looks like these people. Therefore, we should try to
find people who are different than our current customers.
In fact, the greatest opportunity lies in persuading people who have already
adopted skiing/boarding to do it more … or those who are lapsed skiers/
boarders to take it up again … than it is to convince people who have never
skied/snowboarded before, that they should begin this new sport.
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SnowSports Industries America
This counter-intuitive fact was supported by quantitative research done a
few years ago by the industry, which identified these very different
“potentials” and explored their interest in snow sports and other leisure
activity. The chart below illustrates just one of the complexities of
persuading people to adopt a new activity outside of their experience –
including the habit of taking vacations during the wintertime. As you can
see, going after a market that looks entirely different than your current
customers, requires taking on entirely new marketing burdens, which is
why we say “birds of a feather flock together.”
Number of Vacations Taken This Winter
70
58%
60
50
40
28%
30
20
8%
3%
10
2%
0%
4
5
1%
0%
None
1
2
3
6
Source: 1998 Potential Market for Skiers Study by Leisure Trends for SIA
Myth #4:
There is a single, silver bullet advertising message that
could appeal to and motivate the vast majority of current
and potential skiers/snowboarders to participate more.
Fact:
This diverse consumer base of skiers and boarders, with
varying interests, attitudes, ages and proficiencies, requires
multiple targeted messages.
We would all like to believe that there is such a simple, mass advertising
solution. But whether we are selling fast food, automobiles, computers or
snow sports, the mass market is dead. In our research, we learned that a
majority of skiers/boarders do perceive some common benefits to the
activity. However, the emphasis and presentation of these benefits must
vary depending upon the participants proficiency, whether they are a day
or destination participant, whether they have young families, etc.
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SnowSports Industries America
The chart below shows the percentage of skiers/boarders of different
proficiencies who rate different aspects of the sport as “highly positive”
(8-10 on a 0-10 scale). You will note that while there are some commonly
agreed upon positive benefits, the percentage of consumers who rate them
as highly important varies depending upon proficiency.
Positive Aspects of Snow Sports
56%
63%
64%
67%
65%
57%
Freedom/Getting Away
Being with Family/Friends
39%
Being Outdoors
56%
55%
33%
Exercise and Athleticism
49%
54%
15%
Excitement/Thrill
34%
42%
17%
Challenge and Skill
0%
10%
20%
35%
30%
40%
53%
50%
60%
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
Beginner
Intermediate
Advanced
Myth #5:
Awareness of shaped skis, other “make it easier
technologies” and their benefit is quite high.
Fact:
Most skiers are either unaware of the existence of this new
technology or its relevant benefits.
In our focus groups we discovered that even among “avids,” or advanced
skiers/snowboarders, there was only a general awareness of this technology
and very little awareness of the significance of this technology to enhancing
their skiing experience. Among the “beginner” and “intermediate” skiers
there was low awareness of these technologies and virtually no
understanding of the impact this technology could have on their skiing
performance.
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SnowSports Industries America
While these insights come from focus group conversations with a relatively
small number of consumers, we found some interesting supporting data from
research conducted by Skiing Magazine of its subscribers -- a more committed
skier/boarder is likely to also be more focused on equipment. But even among
the Skiing Magazine subscribers, only 46% had ever tried “shaped skis.”
However, of those who had tried them 62% had bought a pair.
Lastly, we asked our consumers of all proficiencies to rank the most appealing
things the industry could do to get them to ski/snowboard more. Allowing
them to “Try new equipment free” was near the top of each group’s list.
Things Industry Could Do to Motivate More Frequent Snow Sporting
Skiers
Snowboarders
Adv.
1
Int.
1
Beg.
2
Lapsed
1
Adv.
3
Int.
2
Beg.
1
Season passes, multiple resorts
2
2
6
3
2
1
2
Individual season passes $200
3
4
7
7
1
4
4
Guaranteed good experience
4
3
3
2
4
3
3
Family season passes -- $595
5
9
8
9
5
9
8
Lessons with money-back guarantee
6
5
5
5
8
7
5
Season passes on installment plan
7
10
10
10
6
5
10
Bus transportation
8
7
9
8
7
6
9
Lift ticket, lessons package
9
6
4
9
9
8
7
Other activities; sledding, movies, shopping
10
8
1
4
10
10
6
Free quality day care
11
11
11
11
12
12
11
Valet parking
12
12
12
12
11
11
12
Try new equipment free
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
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SnowSports Industries America
Key Findings
After reviewing literally dozens of past research projects from our industry, conducting
focus groups around the country, completing our content analysis and our quantitative
research of 800 telephone interviews, we faced the challenge of boiling all of this down
into a handful of critical findings that people in the industry could absorb and use.
In this section we have identified what we believe are the five most strategically
significant and actionable findings from this entire research project. We have attempted
to explain the significance of each of these findings in strategic conceptual terms,
supported by data from our quantitative research.
Key Finding #1:
There is a strong relationship between skier/boarder
proficiency, enthusiasm, participation and sales.
This is very close to a “formula for success.” The data suggests
that as a consumer’s proficiency at skiing/boarding increases, it
pulls with it enthusiasm, participation and sales. As the
skier/boarder’s confidence within snow sports increases, the
confidence grows concomitantly and their investment in the
activity follows as a natural byproduct.
This finding, that proficiency equals higher sales, might be
illustrated by the conceptual diagram below:
Concept Diagram
Sales
&
Participation
Enthusiasm
Proficiency
Participation
Sales
Source: 1999 Analysis/Concept Development by Focalpoint for SIA
This diagram is relatively straightforward, after the natural dip in
enthusiasm during a skier’s/boarder’s early “honeymoon” with
the activity, enthusiasm, proficiency and sales rise together.
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SnowSports Industries America
As the conceptual illustration on the previous page suggests, one
aspect of this “formula for success” is enthusiasm, which appears
to increase with proficiency. In our quantitative research we
asked skiers and boarders to rank their enthusiasm on a scale of
0-10 (“0” = “not at all enthusiastic;” to “10” = “extremely
enthusiastic”), and we segmented these results by self-reported
proficiency - - beginner, intermediate and advanced.
Enthusiasm for Snow Sports
12
9.7
10
8.2
8
6
4.6
4
2
0
Beginner
Intermediate
Advanced
Source: 1999 Analysis/Concept Development by Focalpoint for SIA
As you can see, “Advanced” skiers/boarders were almost off the
charts with an enthusiasm rating of 9.7, followed by
“Intermediates” dropping back to 8.2 and “Beginners” far behind
at 4.6. Clearly, there is a relationship between proficiency and
enthusiasm.
Similarly, we wanted to see how that enthusiasm held up against
competing leisure activity - - the ultimate test. In the quantitative
research we asked these consumers to tell us whether skiing rated
as their favorite or second favorite activity, as you can see from
the chart on the following page.
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SnowSports Industries America
As the chart below demonstrates, skiing competes very effectively
with other activity among advanced skiers, but drops off as one would
expect from 59% rating it as their first or second activity among
“Advanced,” to 40% for “Intermediates” and 8% for “Beginners.”
Snow Sports Among Top Two Favorite Activities
70%
59%
60%
50%
40%
40%
30%
20%
20%
8%
10%
0%
Lapsed
Beginner
Intermediate
Advanced
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
We then investigated this finding further by asking whether the
consumer would be “not likely,” “somewhat likely,” or “much
more likely” to increase their participation if they were better at
it. As the chart below reflects, an exceptionally high percentage
of “beginners” (53%) said they would be “much more likely to
increase participation if they were better at it,” dropping off to
27% for “intermediates” and only 8% for “advanced.”
Participate More if Better At It
60%
53%
50%
40%
27%
30%
20%
8%
10%
0%
Beginner
Intermediate
Advanced
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
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SnowSports Industries America
Lastly, we discovered in past research, a question that was asked
several years ago of consumers about their reasons for not
buying new skis. We discovered, not surprisingly, that the most
significant correlation between not purchasing was “not
participating” as you can see below:
Reasons for Not Buying New Skis
36%
22%
11%
7%
7%
7%
4%
3%
2%
1%
Don’t ski enough
Just bought a new pair
Satisfied with what I have
Too expensive
Don’t know what to buy
Other
No money
Want to buy a snowboard
Don’t need
Prefer renting
Source: 1996 Southern California Snow Sport Study by Leisure Trends for SIA
Therefore, putting together the learning from the previous four
charts, you can see the correlation between proficiency and
enthusiasm, participation and, apparently, sales as well.
Key Finding #2:
The industry is bleeding new triers and participants
of low proficiency.
Every industry must grapple with attrition - - customers that fall
away over time. However, what is very clear in the snow sports
industry is that our customer attrition is not scattered throughout
skiers/boarders of all proficiencies; rather it is highly
concentrated among those skiers/boarders of lower proficiency.
We saw that data indirectly in a number of our questions, but in
particular in our quantitative results. We compared the
percentage of respondents by their proficiency level, (e.g., 7%
reported they were “Expert,” while 26% reported they were
“Low Intermediate”), and then the percentage of skiers who
reported themselves as “Lapsed” by proficiency.
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SnowSports Industries America
As you can see from the chart below, when you look at the
marketplace as a whole, you realize that we lose more low
intermediate and beginner skiers (and we assume the same
applies to boarders) than we keep.
Percentage of Each Group - Current vs. Lapsed
Expert
3%
Advanced
7%
23%
7%
High intermediate
31%
26%
Low intermediate
10%
Beginner
0%
5%
10%
34%
36%
20%
15%
20%
Lapsed skiers
25%
30%
35%
40%
Current skiers
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
Key Finding #3:
The greatest marketing opportunity in the snow
sports industry lies in reactivating lapsed and
upgrading light and moderate users.
It is true in virtually every industry that the most valuable
consumers are the heavy users, which in this industry means our
“avid/expert/advanced” skiers and boarders. This is a group we
don’t want to lose and to whom the industry currently focuses an
enormous amount of its attention and financial resources.
However, if we then want to look at how to grow our sport and
where we might find the greatest potential to accelerate
skiing/boarding participation and sales, it is not among the most
avid, but among the light users (lower intermediate and beginner)
and “intermittent” (lapsed) skiers and boarders.
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SnowSports Industries America
As the following chart from previous industry research
demonstrates, the most active skiers generate the most “skier
days” within our industry, but not the most equipment demand.
Further, the potential to grow both skier days and sales is most
significant among light and intermittent skiers/boarders who are
under-represented in both skier days and equipment demand.
Skier Population vs. Participation and Sales
5%
Heavy
15%
26%
Moderate
43%
33%
Light
26%
32%
26%
Intermittent
35%
9%
18%
10%
New
8%
Active Skiers
New
Intermittent
6%
8%
Skier Days
Equipment Demand
Light
Moderate
Heavy
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
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SnowSports Industries America
As you can see, while heavy skier/boarders (avid/experts)
represent only 5% of the active skier population, they generate
43% of the skier days and 15% of equipment demand - - both
disproportionate percentages. However, there is little
“headroom” available in their increased participation, whereas
among the light and intermittent users (who represent 26% and
35% respectively of skier days) they are under-represented in
both skier days and equipment demand.
We hypothesize that relatively small incremental increase in the
proficiency of light and intermittent skiers/boarders would
produce a dramatic increase in overall industry skier days and
sales.
Key Finding #4:
The new equipment technology can produce
significant marketing leverage.
As we discussed briefly under the “Myths and Facts” section, the
“make it easier” technology within the skiing/boarding industry
(skis, boots and boards) is a marketing opportunity yet to be fully
exploited. We began to see evidence of this in our focus group
discussions, and in our review of existing research in the
marketplace.
In our quantitative research we delved further into this new
technology as the driver of potential increased skier/boarder
participation and sales.
Specifically, we asked the question of our quantitative survey
group to rate on a scale of 0-10 (“0” = “least appealing” to “10”
= “most appealing”) which of a list of over a dozen things the
industry can do to encourage the individual to increase their
participation.
In the chart on the next page we have broken these responses out,
again, by proficiency level; “Free New Equipment Trial” and
“Season Passes at Multiple Resorts” were the two winning
incentives.
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SnowSports Industries America
Most Appealing Incentives to Participate More
27%
Lift Ticket and Lessons Package
37%
30%
Lessons With Guarantee
47%
39%
44%
Guaranteed Good Experience
42%
Free New Equipment Trial
59%
39%
Season Passes at Multiple Resorts
42%
Individual Season Passes Under $200
24%
Installment Plans for Season Passes
30%
10%
20%
Beginner
68%
62%
37%
34%
25%
25%
0%
66%
59%
47%
29%
Family Season Passes for $595
57%
53%
30%
40%
50%
Intermediate
60%
70%
Advanced
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
Not only is it surprising that new equipment trial ranks so high,
but it ranks above several discount options. Further, we see that
incentives likely to increase proficiency (ski lessons) also were
found to be very appealing, particularly, among beginners and
intermediates.
Key Finding #5:
Children can be either a significant barrier or
motivator to increased skiing/boarding
participation.
Not surprisingly, when we asked lapsed skiers what was the main
reason they did not ski in the past twelve months, the two issues
that came to the top were “time issues” and “children.” Among
snowboarders, a much younger audience less likely to have
children, “no time” and “too expensive” were the top reasons for
not boarding more.
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SnowSports Industries America
At the same time, when we asked what is the main reason these
individuals were skiing more in the past five years, the number
one reason was “family/children.” This seeming dichotomy was
explained by looking a little bit deeper, where we discovered that
skiers and boarders with children had a strong desire to involve
their children in this activity, but that involvement came with
considerable increased complexity, inconvenience and cost.
Therefore, we wanted to know whether skiers/boarders would be
significantly likely to increase their participation if we made it
easier to include their children.
As the chart below demonstrates, nearly two-thirds of consumers
who had children under the age of 10 years, said they would be
“much more likely” to increase their participation in
skiing/boarding “if it were easier to include their children.”
Likelihood to Increase Participation if Easier to Involve Kids
Don't Know
1%
1%
29%
No More Likely
35%
Somewhat More
Likely
18%
23%
52%
Much More Likely
41%
0%
10%
20%
30%
Male
40%
50%
60%
Female
Source: 1999 Segmentation Study by Focalpoint/FSR for SIA
As you can see, the likelihood of increasing their participation
was particularly pronounced amongst women, with 52% saying
they would be much more likely to increase their participation
vs. 41% for males. These consumers are saying loud and clear
that if it were easier for them to include their children, you would
see a significant increase in snow sports participation.
21
SnowSports Industries America
Key Finding #6:
Introducing consumers to skiing/boarding at an
earlier age, and sustaining their loyalty, will have an
exponential impact on industry revenue.
We all can imagine that if consumers have a longer “career” as
skiers/boarders that will mean greater revenue to the snow sports
industry. However, we discovered there is a much more
significant economic factor at play.
In fact, we discovered that if consumers are introduced to
skiing/boarding in their teenage years or before, it increases not
only the number of years they are likely to participate, but their
proficiency as well -- which as we learned earlier in this report,
drives greater frequency of participation and sales.
The conceptual graphic below illustrates the impact of a
skiing/boarding career begun at age 10 vs. age 25. If the
consumer starts at the age of 25 they move up to an intermediate
level, on average, and then drop out of the sport fairly quickly.
But, if the consumer starts at the age of 10, for example, the data
seems to suggest that they reach a higher level of proficiency, ski
longer, ski more often, and therefore, make more purchases.
P r o f ic ie n c y
A d va nced
I n t e r m e d ia t e
S ta r tin g @ A g e 1 0
S ta r tin g @ A g e 2 5
B e g in n e r
0
5
10
15
20
25
30
35
40
45
50
A ge
Source: 1999 Analysis/Concept Development by Focalpoint for SIA
22
SnowSports Industries America
The conceptual diagram on the previous page is supported by a
very simple consumer lifetime value model which is summarized
below. We have compared both the average annual expenditure
of a consumer starting at the age of 25 vs. one who starts at the
age of 10. We can make these assumptions because our data
demonstrates that there is a direct correlation between
proficiency and the age in which you started to ski/board.
Therefore, using that data as a guide, we projected the following
likely lifetime value of these two groups.
Lifetime Value Starting at Age 25
Item *
Skis
Boots
Bindings
Apparel
Accessories
Lift tickets
Food, beverage
Lodging
Retail Price
$331
$255
$148
$216
$28
$44
$25
$150
Units/Year
0.15
0.15
0.15
0.075
0.75
4
4
2
Years
20
20
20
20
20
20
20
20
TOTAL
AVERAGE/Year
Total
$993
$765
$444
$324
$420
$3,520
$2,000
$6,000
$14,466
$723
* Purchased at Specialty Store
Source: 1999 Analysis of SIA data by Focalpoint for SIA
Lifetime Value Starting at Age 10
Item*
Skis
Boots
Bindings
Apparel
Accessories
Lift tickets
Food, beverage
Lodging
Retail Price
$331
$255
$148
$216
$28
$44
$25
$150
Units/Year
0.2
0.2
0.2
0.1
1
10
10
4
TOTAL
AVERAGE/Year
Years
35
35
35
35
35
35
35
35
Total
$2,317
$1,785
$1,036
$756
$980
$15,400
$8,750
$21,000
$52,024
$1,487
* Purchased at Specialty Store
Source: 1999 Analysis of SIA data by Focalpoint for SIA
23
SnowSports Industries America
As you can see, the consumer who starts at the age of 10
has an average yearly value of $1,487 vs. $723 for the
consumer who starts at the age of 25, and a lifetime value
of $52,024 vs. $14,466 for the consumer who starts “later
in their career.”
Therefore, starting consumers early in the sport must
become a high marketing priority because it produces
exponential impact on participation and sales over time.
24
SnowSports Industries America
A New Approach to the Market
Given these key findings about our consumers, it is clear that if we are to successfully
compete in this new economy and grow our industry, we must change our approach to the
market.
While there is a virtually limitless number of tactical changes we can make, we believe
there are four key strategic changes of particular merit.
This new strategic approach to the market involves a transformation common in so many
industries today - - from “product focus” to “customer focus.” Rather than have our
infatuation for the “product” drive our marketing, (e.g., a new ski design or a high-speed
quad lift), we must define who we are and what we do through the eyes of the customer.
This means that we must better understand the value of the different
segments of our customer base, the needs of those segments, and how
to align our “products” to meet those needs.
Specifically, the research has taught us that we can compete more effectively by making
our marketing messages and offers more relevant to our consumers by looking at our
industry quite differently than we do today.
1.
We can no longer look at snow sports as a mass market, but as the
sum of many segments.
The research analysis suggested that our consumers view skiing/boarding
quite differently based on a series of variables including:
•
Their behavior – whether they are snowboarders or skiers, day
or destination participants, rent or own their own equipment,
participate in lessons or not, are responsive to promotions;
•
Proficiency – advanced/expert, intermediate, beginner, lapsed,
potential;
•
Demographics – age, gender, income, occupation, family
status; and,
•
Psychographics – importance of skiing, thrill seeker vs. escape,
other activities that they participate in, media interest.
Each of these variables and many more have an impact on our consumers’
view of this activity and our marketing offers and messages. The list of
variables could be limitless, segmenting our market to literally a segment
of one.
25
SnowSports Industries America
However, to be practical in our new approach, we should focus our
marketing strategies and plans on what we call the Big 3 Segmentation
Criteria:
•
Behavior: skier or snowboarder, day or destination;
•
Value/proficiency: Intermediate, Beginner or Lapsed; and,
•
One demographic: whether the consumer has children under
the age of 16 or not.
The research suggests that these are the three most important variables that
we must keep in mind in thinking about our market as a sum of many
segments.
2.
Communicate the strengths of the brand “snow sports” in terms
relevant to each of these customer segments.
A simplistic way to make this point is we must have “different strokes for
different folks.” For example, we know that the needs of the destination
skier with three children planning a week-long ski vacation, are quite
different than the needs of a single, 18 year-old, day snowboarder.
If before we design our marketing offers and messages we determine what
consumer segment is our target audience, we can then anticipate their
needs and align our products, messages and offers accordingly.
This is a very different approach to the market than that which the snow
sports industry currently follows. Rather than create a single image or a
single message designed to have appeal to the entire marketplace, we
identify an actionable market segment and craft our offers and messages
accordingly. An illustration of this approach might be demonstrated by
the three illustrations below:
•
Intermediate snowboarder, day-tripper – for this consumer we
may have success in upgrading their growing enthusiasm for
this sport by providing them with a “special snowboarder
season pass” and an invitation to join the snowboarders
“Pioneer Club,” recognizing the pride and adoption that exists
among this target audience.
26
SnowSports Industries America
•
Beginner skier with children under 16 years of age – we know
that this audience has an aspiration to involve their children
and they themselves can’t help but marvel at the kids they see
racing down the slopes with growing confidence. Therefore,
providing them with an offer such as a discount on ski school
for their children and a message such as “Don’t you wish your
parents had started you skiing at your kid’s age?” might be
targeted to this segment.
•
Lapsed skier with no children – while this skier does not have
the barrier of children to overcome, they do have the barrier of
a mixed experience with snow sports in the past. Here the
offer might focus on the “make it easier” technology and a
message such as “try it again for the first time, it’s a
completely new experience.”
Of course, these are not intended to be comprehensive customer segment
messaging tactics, rather they are intended to serve as illustrations to
demonstrate how a focus on a customer segment can make our offers and
messages far more relevant.
3.
Allocate our marketing resources based on the potential value of each
customer segment.
Ultimately, spending marketing dollars should be the execution of an
investment strategy - - you are betting that your $1 investment in
marketing to an individual skier/boarder will produce $10 or $20 in
incremental revenue. If you do not receive a significant return on that
investment you lose money.
A segmented approach to the market permits you to target those
investments far more shrewdly, investing the greatest number of dollars in
consumers whom you believe will produce the greatest return on
investment.
The point that we have made repeatedly in this report is that we believe
that our investment in marketing should be focused on the customer value
acceleration opportunity – those segments of the consumer marketplace
that present the greatest opportunity to increase participation and sales.
27
SnowSports Industries America
Of course, the most avid skier/boarder (self-described experts/ advanced)
needs to be one of your high-value targets. At the same time, we want to
focus considerable resources on the customer segments with the greatest
“acceleration potential” of light and intermittent users - - lapsed, beginner
and lower intermediate skiers/boarders.
Returning to a chart that we used earlier in this report, you can see why
segments that represent large snow sports populations, but are under
represented in participation and sales, represent good marketing
opportunities.
Population Participation Sales
5%
Heavy
15%
26%
Moderate
43%
33%
Light
26%
Target Segments
Light
32%
Intermittent
26%
35%
Intermittent
9%
18%
10%
8%
New
Active Skiers
New
Intermittent
8%
6%
Skier Days
Light
Moderate
Equipment Demand
Heavy
As you can see, a relatively small percentage increase in the participation
of these less proficient skiers/boarders should produce a very substantial
total return in increased participation and sales.
28
SnowSports Industries America
Critical Strategies for Success
Beyond a discussion of what we learned and the need for a new approach to the market,
we developed a series of marketing strategies which we believe could prove critical to the
snow sports industry’s success in the years ahead.
The importance of each of these strategies was reflected in our research review and
analysis, and it is supported by the experience of other companies and industries who are
struggling with the same market forces as are we.
You will note that the following strategies grow directly out of the previous report
sections, “Key Findings” and “A New Approach to the Market.”
•
Capture critical customer information – name, address, proficiency, frequency
of participation, etc. The relative handful of customer data points that you
will need to be able to focus your resources on your single-most productive
market segment … current/past customers.
•
Invest in growing your skier/snowboarders proficiency – don’t just spend your
marketing dollars to promote price; instead, invest those dollars in special
offers that involve lessons to increase proficiency and return value over time.
•
Leverage the full potential of season passes – because season passes are a
device to increase the customer’s “stake” in snow sports, it is likely to be a
productive tactic to increase proficiency, participation and additional sales.
•
Bundle price into a larger value proposition – to avoid focusing the customer
on price, you can bundle a discount offer within a package of benefits of at
least equal and probably greater value to the customer such as lessons, lift
tickets, meals, child care as a complete “family package.”
•
Turn children into motivators – if you are going to discount, focus on
discounting kids, ski school and other tactics likely to get the customer into
the activity early, and to make the participation of kids more convenient and
less costly for parents (it is the “secret” to McDonald’s success).
•
Reward loyalty and heavy users – create formal recognition for the
skier/boarder’s increase in proficiency (ski school report cards, equipment
upgrade discounts) and acknowledge those consumers who participate more
and/or purchase more.
•
Use affinity marketing for recruiting – if you are going to invest dollars in
recruiting “potentials” or other new participants, “wholesale” the activity,
don’t “retail” it by working with affinity interests such as “Geeks on Skis”.
29
SnowSports Industries America
•
Target lapsed skiers/boarders for reactivation – it appears that the two
principal reasons lapsed skiers/boarders dropped out is: 1) the challenge of
getting better at the sport; or, 2) the added complexity of skiing/boarding with
children. So, focusing on those two barriers with targeted promotions such as
“try it again for the first time” will be relevant to these lapsed customers and
help your message get through.
•
Target beginners and intermediates for upgrades – this is a group “on the
bubble.” They are considering whether snow sports is an activity that gives
them enough reward and sense of achievement to successfully compete for
their time and pocketbook. Therefore, we should create promotions to
increase their proficiency (e.g., “up a notch in a week”) and reinforce their
sense of achievement (e.g., graduation certificates).
•
Focus on children’s lifetime value – view an expenditure on a child (whether a
discount on a helmet or on ski school) as an investment that will produce a
broad return over time, including the participation of their parents. Further,
their satisfaction with their growing proficiency and participation will be
associated with your resort, retail outlet or equipment brand and their loyalty
will follow.
30
SnowSports Industries America
Tactical Rules of the Road
Attachment Number IV of this report is a tactical matrix, which is a summary of
illustrative tactics (marketing offers and messages) and their alignment with the different
target market segments we have discussed.
While these are not full tactical plans, they are intended to be tactical ideas, based on the
marketing principals that grow out of this research to “prime the pump” of your
marketing plan. However, before you dive into the development of your tactical plans,
there are five tactical rules of the road that we think bear keeping in mind.
1.
Remember who is your target audience – resist the temptation to
broadcast a general message to a mass market.
2.
Don’t shoot over your consumers’ heads – don’t create an exclusive
message that you and the other snow sports “insiders” find appealing, but
tailor messages that are inclusive, targeted to the vast majority of
consumers who represent your greatest sales acceleration potential.
3.
Make sure your messages and offers are relevant to each segment – it
is no longer enough in marketing to make your imagery appealing and
your messages and offers competitive, you must strive to make all of this
more relevant to the needs of the consumer.
4.
Keep your messages and tactics simple – as they say in politics “do the
doable,” and don’t confuse the consumer, simple remains better.
5.
Continually refresh your knowledge of the needs and value of the
customer and adjust your marketing accordingly – marketing today is
characterized by constant change and tactical adjustment. While the
fundamental principals in your core strategies should remain constant, you
will need to adjust your tactics to accommodate shifting consumer
interests, changing market conditions and the individual realities of your
business.
31
SnowSports Industries America
The Bottom Line
In one respect our research project has uncovered dozens of layers of insight into
marketing for the snow sports industry. At the same time, all of this data continues to
point to a few critical observations and recommendations. That handful of critical issues
are woven throughout this report and they constitute the “bottom line” of what we have
learned and what we recommend to the industry.
•
The market is not monolithic; its many segments reflect different values,
needs, attitudes and behaviors.
•
Our messaging and offers must reflect those differences and begin to
build relationships with our customers.
•
The greatest opportunity to grow our industry lies in reinstating lapsed
and upgrading beginner and intermediate users - - less with advanced
skiers/boarders and even less so with “potentials.”
•
Increasing our target audience’s skiing/boarding proficiency is key to
increased participation and sales … and growing our industry.
There are few industries in which there is such a clear connection between cause and
effect … marketing actions you can take to encourage a change in consumer behavior
that will produce significant increases in participation and sales. In almost every
industry, business leaders ask:
How can I get the consumer to spend more with me
than with my competitors?
With the snow sports industry we believe the answer to this perennial question is clear:
When the consumer feels their proficiency at skiing/snowboarding is increasing, they feel
more confident, they participate more and they spend more dollars.
The snow sports industry has extraordinary tools to increase consumer proficiency and
confidence -- new technology, lessons, a breadth of potential new imagery, imaginative
new marketing offers and increasingly relevant messages. It is a huge opportunity, the
fundamental economics of which can be captured in a strategy statement as simple as:
Get the consumer in early, and make them better.
32
SnowSports Industries America
Attachment I
ACKNOWLEDGEMENTS
We want to thank the following individuals and companies for making this report a useful
reality.
The SIA board of directors for their vision and courage to embark on this project:
Ned Post, Smith Sport Optics, Chairman
Diane Boyer-Irwin, SKEA
Mike Carey, Seirus Innovative Accessories
Stephen Crisafulli, Marmot Mountain Ltd.
Bob Gundram, Northwave North America
Hugh Harley, Rossignol Ski Co., Inc.
Edward Kiniry, Tubbs Snowshoe Company
David Lampert, Swix Sport USA
Darcy Lee, Cold As Ice
Richard Leffler, Nils, Inc.
Emily Merrill, Turtle Fur Company
Richard Zuckerwar, Grandoe Corporation
Tom Wright, Salomon North America
Betty Tung, Fera International Corp.
John Stahler, Tecnica USA
John Schweizer, Garmont USA, Inc.
David Schubert, Alpine Design
David Schmidt, Burton Snowboards
David Provost, Dynastar Skis, Inc.
Bob Provost, Vans, Inc.
Larry Morton, Scott USA
The individuals and companies that contributed proprietary research to the project
including:
Leisure Trends
RRC Associates
National Ski Areas Association
Brand Consulting
National Skier Opinion Survey
McKinsey
The Skiing Company
Neilsen
SGMA
NSGA
Transworld Media
Rossignol
Ride
The individuals who participated on the task force and offered great insight,
encouragement and valuable direction to all involved:
Mike Berry, NSAA
Bruce Mainzer, Vail Mountain
Ed Pitoniac, Intrawest Corp.
Chris Brink, ASC
John Norton, Aspen Mtn.
Tim Petrick, Booth Creek Ski
Russell Coloton, Hunter Mountain
David Crowley, Wachusett Mtn.
Cris Frado, CCSAA
Bob Danzeisen, Danzeisen & Quigley
Erik Anderson, Switch Mfg.
Jack Baltz, Atomic Ski USA
Greta Brumbach, Ride Snowboards
Steve Crisafulli, Marmot Mtn. Ltd.
Hugh Harley, Rossignol Ski Co.
Dennis Jensen, Burton Snowboards
Tom Wright, Salomon North America
John Stahler, Tecnica
Kenny Friedman, Kenny’s Double Diamond
Ken Gart, Specialty Sports
Ned Hamilton, Peter Glenn Ski
Jan Peterson, Jans Mtn. Outfitters
Wilbur Rice, Equipe Sport Ltd.
Julie Maurer, Booth Creek Ski
John Schweizer, Garmont USA
Stu Rempel, K-2 Corporation
Skip Rap, Hard Corps Sports
David Provost, Dynastar Skis
Ned Post, Smith Sport Optics
Barbara Owen, Sport Obermeyer
David Lampert, Swix Sport
33
SnowSports Industries America
Attachment II
Inventory of Research Materials
Materials Received
STUDY TITLE
RESEARCHER / SPONSOR
STUDY
DATE
REC’D FROM
REC’D
DATE
Southern California Snow Sport
Marketing Study
SIA Snow Sports Book - Industry
Guide
Snowtrak
SIA National Snowboarder Survey
Top Line Retail Audit
Transworld Snowboarding
Business/NSAA-1997/98 Ski Resort
Snowboarding Survey
National Ski Areas Association
National Demographic Study
NSAA KOTTKE End of Season
Survey 1997/98
Brand Focus Groups on Skiing and
Snowboarding
1994-95 National Skier Opinion
Survey
U.S. Ski & Snowboard Industry
Retail Audit
Potential Market For Skiers and
Snowboarders
Building Industry Profits – National
Ski Areas Association – 2nd Steering
Committee Discussion
Facts & Figures on the Snow Sports
Industry
1998/1999 Subscriber/Reader Profiles
Leisure Trends Group/SIA
09/96
SIA
7/9/99
SIA
1999
SIA
7/9/99
SIA
SIA
SIA
RRC Associates/NSAA
1999
1996
03/99
10/98
SIA
SIA
SIA
RRC Associates
7/9/99
7/9/99
7/9/99
7/8/99
RRC Associated/NSAA
09/98
RRC Associates
7/8/99
RRC Associates/NSAA
1997/98
RRC Associates
7/8/99
Brand Consulting Group/SIA
05/94
SIA
6/15/99
National Skier Opinion
Survey Inc./SIA
Leisure Trends Group &
Recreation Research/SIA
Leisure Trends Group/SIA
1994
SIA
6/15/99
09/95
SIA
6/15/99
06/98
SIA
6/15/99
McKinsey &
Company/NSAA & SIA
012/88
SIA
6/15/99
SIA
01/98
SIA
6/15/99
RRC Associates/The Skiing
Company
Leisure Trends Group
1999
The Skiing Co.
8/31/99
1999
8/16/99
Ride, Inc.
Rossignol Ski Company
5/4/97
1999
Aspen Skiing
Company
Ride, Inc.
Rossignol
8/20/99
8/16/99
TransWorld Media/Rogers
1998
TransWorld
9/27/99
TransWorld Media/Simmons
1999
TransWorld
9/27/99
TransWorld Media/Simmons
1998
TransWorld
9/27/99
1998/1999 National Skier/Boarder
Opinion Survey
Compilation of Market Research
Shop and Employee Survey
Questionnaires
Snowboard Life Magazine Reader
Survey
Snowboarding Magazine Reader
Surveys
Skateboarding Magazine Reader
Surveys
34
SnowSports Industries America
Attachment III
Research Samples
Advanced/
Expert
%
Skiers
Intermediate Beginner
%
%
Lapsed
%
Boarders
Advanced/ InterExpert
mediate
%
%
Beginner
%
GENDER
Male
Female
65
35
44
56
22
78
34
66
90
10
77
23
53
47
AGE
18-29
30-39
40-49
50-59
60+
29
16
31
18
6
22
22
37
15
4
22
25
44
8
--
19
23
33
23
2
78
15
8
---
77
8
9
2
4
40
44
11
4
--
INCOME
<$50K
$50-100K
>$100K
16
36
38
11
43
30
3
50
33
12
41
28
16
40
21
24
34
21
11
45
18
MARITAL STATUS
Married
Single*
70
29
72
25
81
19
76
22
12
87
23
75
51
42
CHILDREN
% With Children
Living at Home in
Each Age Group
Under age 5
Age 5 to 10
Age 11 to 18
No children under 18
15
15
26
44
19
20
36
25
25
22
31
22
20
14
29
37
8
3
3
86
11
11
23
55
24
22
23
31
35
SnowSports Industries America
Attachment IV
Resort Tactical Matrix
Segment I-Resort
−
−
−
−
Segment
Description
Skiers/
Snowboarders
Children < 16
Active
Participant
Local or
Destination
Strategic
Theme
Objective
Turn children New fun for
into
the whole
motivators,
family.
not barriers.
Message
Tactical Execution
We’ve made it
− “Family Fun Ticket” Transferable lift ticket between
much easier for you
parents. Media: collateral, internet, direct mail, newsprint,
and your whole
radio
family to enjoy the − “Family Zones” Specially designated areas. Media:
wholesome,
collateral, internet, direct mail
outdoor experience − (local) “Newcomer Ski Bus” Ages 6-12. All-inclusive
that is
lessons, bus, rental, chaperone. Reward with certificate of
skiing/boarding.
achievement for proficiency. Media: direct mail, coop,
radio, newsprint, school insert
− (local) “Family Ski/Snowboard Pass” Parents purchase pass,
12 & under ski free, plus ½ off groups of package of 5 kid
lessons. Media: collateral, direct mail, radio, newsprint,
regional distribution partnerships
1
Attachment IV
Segment II-Resort
−
−
−
−
Segment
Description
Skiers/
Snowboarders
Children < 16
Lapsed
Participant
Day or
Destination
Strategic
Theme
Objective
Turn children Your kids
into
will thank
motivators,
you for it.
not barriers.
Message
Tactical Execution
Don’t you wish
− “E-Z” Family Holiday. One easy, great value, all-inclusive
you’d started skiing
family vacation: Meals, lodging, lessons, lesson prewhen you were
registration, rental, lift ticket, winter activities. Media:
your kid’s age?
wholesalers/travel agents coop, newsprint, direct mail,
Give them
collateral
something they’ll
− Kid “thank you” bonus. Kids, fill out thank you card at end
thank you for a
of vacation, get your first day of next visit free. Media:
lifetime.
wholesalers/travel agents coop, newsprint, direct mail,
collateral
− “Second time around” ski clinics. Package shape ski with
lesson. Move up a notch in one day or your next days of
lessons are free. Media: direct mail, in-resort, collateral
− “My first ski lesson,” kids introductory package. Preregistration of rentals/lessons, field trips of “behind the
scenes” of mountain operations, organized snow games,
certificate of accomplishment, videotape or pitcher from
first lesson. Special parents incentive on shape ski and
lesson package. Provide additional discounts on ancillary
winter activities (tubing, ice-skating). Media: direct mail,
radio, newsprint, internet, collateral
2
Attachment IV
Segment III-Resort
Segment
Description
− Skiers Only
− No
Children
− Active
Participant
− Day
Strategic
Objective
Increase
level of
participation
and
proficiency.
Theme
Now you can
take full
advantage of
your backyard.
Message
Tactical Execution
With new, easier
− “Local Ski Tune-up,” season pass and discount card holders
technology and
receive an early season shape ski and lesson special. Media:
teaching methods, it
direct mail
is much easier for a
unique outdoors
experience in your
own backyard.
3
Attachment IV
Segment IV-Resort
Segment
Description
− Skiers Only
− No
Children
− Active
Participant
− Destination
Strategic
Objective
Increase
level of
participation
and
proficiency.
Theme
Message
Stay an extra
couple of days
and
“breakthrough.”
With new
technology and
teaching methods,
if you’re going to
make the trip take a
full week of lessons
and we guarantee
you will
“breakthrough” to
another level.
4
Tactical Execution
“Move up a notch, guaranteed.” Three-day program including
shape skis and lessons. If you don’t breakthrough to the next
level, the next two lessons are on us. Media: direct mail,
collateral
Attachment IV
Segment V-Resort
Segment
Strategic
Description
Objective
− Skiers Only Try skiing
again.
− No
Children
− Lapsed
Participant
− Day or
Destination
Theme
Message
It’s not as you
remember – it’s
a new sport.
With new
technology and
teaching methods,
skiing is a much
easier and more
enjoyable activity –
unlike any other.
You owe it to
yourself to try it
again – for the first
time.
5
Tactical Execution
− “Second time around” ski clinics. Package shape ski with
lesson. Move up a notch in one day or your next days of
lessons are free. Media: direct mail (lapsed skier-ski school
database), in-resort, collateral
Attachment IV
Segment VI-Resort
−
−
−
−
Segment
Description
Snowboarder
No Children
Active
Participant
Day
Strategic
Objective
Increase
level of
activity and
proficiency
Theme
Carve out
another couple
of days and
take full
advantage of
your own
backyard.
Message
Tactical Execution
You’ve discovered
the unique
experience of
carving a turn on a
board, so carve out
another couple of
days and take full
advantage of that
discovery in your
own backyard.
− “Carve Two More Days-on Us.” Tell us how many days you
boarded last year (if 10 or more) and we’ll sell you a special
pass for that length, plus 2 free days on us. Media: local
print, internet, local radio, collateral, distribution partnership
− “You know boarding” mini camp. Riders can discover a
whole new world of snowboarding. Five-day clinics with
local snowboard personality spread over the season. Camps
are designed specifically for riders “who know how to ride,”
but want to know more. Media: local print, internet, local
radio, collateral, distribution partnership
− “Introduce a friend to riding, save on your lift ticket.” Enroll
a beginner snowboard friend into our quick start snowboard
lesson program and you get your lift ticket for ½ price.
Media: local print, internet, local radio, collateral, retail
partnership
6
Attachment IV
Segment VII-Resort
−
−
−
−
Segment
Description
Snowboarder
No Children
Active
Participant
Destination
Strategic
Objective
Increase
level of
activity and
proficiency.
Theme
Carve out
another couple
of days and
discover even
more.
Message
Tactical Execution
If you’re going to
− “Accelerate Ride Camps” Accelerate your learning curve so
make the trip, carve
that you can enjoy riding even more. Branded and operated
out a couple of
by notable resort sponsored snowboard athletes/snowboard
extra days and find
teams. All-inclusive three-day session include athletes
out how much more
insights and training techniques. Camps guaranteed to
there is to discover
improve their riding or they will get a rebate. Media:
in boarding with a
regional snowboard retailer partnership, internet, collateral
week’s lesson.
7
Attachment IV
Segment VIII-Resort
−
−
−
−
Segment
Description
Snowboarder
No Children
Lapsed
Day or
Destination
Strategic
Objective
Try
boarding
again.
Theme
It’s worth
another try,
and we’ll
make it easy
for you.
Message
Tactical Execution
Boarding is an
− “Black and Blue Special.” Daily one-hour free lesson to new
experience like no
riders with purchase of lift ticket. Cover the very basics of
other, but you need
snowboarding and provide a beginner lesson incentive for
to get over the
that afternoon. Media: collateral distributed on-hill to
initial humps.
struggling snowboarders.
We’ll make it fun
− “Second Chance Snowboard lesson.” Guarantee beginner
and easy to get over
snowboard lessons. If you don’t have a fun time in your first
the hump and on to
day, your second days of lessons are free. Media: local print,
years of carving
local radio, internet, retailer partnership
fun.
− “Ride the mountain lesson guarantee.” You will be able to
ride top to bottom in three days, or your fourth day of
lessons will be on us. Media: collateral, internet, regional
retailer partnership
8
Attachment IV
Retailer Tactical Matrix
Segment I-Retailer
−
−
−
−
Segment
Description
Skiers/
Snowboarders
Children < 16
Active
Participant
Local or
Destination
Strategic
Theme
Objective
Turn
New fun for
children into the whole
motivators, family.
not barriers.
Message
Tactical Execution
We’ve made it
− “Kids Ski and Snowboard Swap.” Turn in your kids’ old
much easier for you
skis/snowboard, $$ back on new set. Media: newsprint,
and your whole
direct mail, radio, POS
family to enjoy the
wholesome,
outdoor experience
that is
skiing/boarding.
9
Attachment IV
Segment II-Retailer
−
−
−
−
Segment
Description
Skiers/
Snowboarder
s
Children <
16
Lapsed
Participant
Day or
Destination
Strategic
Theme
Objective
Turn children Your kids
into
will thank
motivators,
you for it.
not barriers.
Message
Tactical Execution
Don’t you wish
you’d started skiing
when you were
your kid’s age?
Give them
something they’ll
thank you for a
lifetime.
− “Lesson for Kids, Refresher for parents” Weeks rental
package with lessons.
− “Deja vu Guarantee” Week’s shaped ski rental, if not easier,
reduced rate.
− “10 Steps to Happy Campers” Tip pamphlet on how to
ensure your kids will have fun. Media: direct mail, in-store,
POS, resort partnership
− “ My First Ski Lesson” gift package on season long
rental/purchase. Parents receive one shape ski demo, lesson.
Media: direct mail, in-store, POS, radio, newsprint, ski
resort partnership
10
Attachment IV
Segment III-Retailer
Segment
Description
− Skiers Only
− No
Children
− Active
Participant
− Day
Strategic
Objective
Increase
level of
participation
and
proficiency.
Theme
Now you can
take full
advantage of
your backyard.
Message
Tactical Execution
With new, easier
− “Guarantee improvement special.” One-day shape ski lesson
technology and
and shape ski package. Move up a notch or rental is on us.
teaching methods, it
Keep them, and we’ll apply $20 to the purchase of shape
is much easier for a
skis. Media: radio, newsprint, ski resort partnership, coop,
unique outdoors
direct mail, in-store
experience in your
own backyard.
11
Attachment IV
Segment IV-Retailer
Segment
Description
− Skiers Only
− No
Children
− Active
Participant
− Destination
Strategic
Objective
Increase
level of
participation
and
proficiency.
Theme
Stay an extra
couple of days
and
“breakthrough.”
Message
Tactical Execution
With new
− “Better Skier Guarantee.” Purchase a pair of shape skis
technology and
before your next vacation. If you don’t see an improvement
teaching methods,
in your skiing, get credit back on another pair. Media: direct
if you’re going to
mail, travel agent/wholesaler, in-store, POS, newsprint
make the trip take a
full week of lessons
and we guarantee
you will
“breakthrough” to
another level.
12
Attachment IV
Segment V-Retailer
Segment
Strategic
Description
Objective
− Skiers Only Try skiing
again.
− No
Children
− Lapsed
Participant
− Day or
Destination
Theme
Message
It’s not as you
remember – it’s
a new sport.
With new
technology and
teaching methods,
skiing is a much
easier and more
enjoyable activity –
unlike any other.
You owe it to
yourself to try it
again – for the first
time.
13
Tactical Execution
− “Straight Ski Special.” Trade in your old straight skis for
new shape skis, receive $$ off the purchase. Media:
newsprint, direct mail, coop advertisement, radio
− “Shape Ski Challenge.” Resort on-site demonstration day.
Free one-hour usage of equipment combined with hourly
clinics on “how to use technology". Provide rebate on
purchase. Media: resort partnership, radio, newsprint,
internet
Attachment IV
Segment VI-Retailer
−
−
−
−
Segment
Description
Snowboarder
No Children
Active
Participant
Day
Strategic
Objective
Increase
level of
activity and
proficiency.
Theme
Message
Tactical Execution
Carve out
another couple
of days and
take full
advantage of
your own
backyard.
You’ve discovered
the unique
experience of
carving a turn on a
board, so carve out
another couple of
days and take full
advantage of that
discovery in your
own backyard.
− “The Great American Snowboard Swap.” Snowboard swap
at areas hottest nightspot. Trade your old board in and get
20% trade-in allowance on new board technology. Media:
local print, direct mail, POS, local radio partnership
− “Bring a friend, carve out some savings.” Bring in a friend
for a first time rental and receive 10% off your next
equipment purchase. Plus, your friend can get a discount on
an introductory snowboard lesson at a local resort. Media:
local print, direct mail, radio, POS, resort partnership
14
Attachment IV
Segment VII-Retailer
−
−
−
−
Segment
Description
Snowboarder
No Children
Active
Participant
Destination
Strategic
Objective
Increase
level of
activity and
proficiency.
Theme
Carve out
another couple
of days and
discover even
more.
Message
Tactical Execution
If you’re going to
− “Buy a board, save on an Accelerated Ride Camp.”
make the trip, carve
Purchase a board and save $$ on a snowboard camp. You
out a couple of
will get better, faster. Media: destination ski resort
extra days and find
partnership, newsprint, POS, radio
out how much more
there is to discover
in boarding with a
week’s lesson.
15
Attachment IV
Segment VIII-Retailer
−
−
−
−
Segment
Description
Snowboarder
No Children
Lapsed
Day or
Destination
Strategic
Objective
Try
boarding
again.
Theme
It’s worth
another try,
and we’ll
make it easy
for you.
Message
Tactical Execution
Boarding is an
− “Try it again” special. Snowboard rental and beginner
experience like no
snowboard lesson package especially for those who took a
other, but you need
lesson from a friend. Media: newsprint, direct mail, radio
to get over the
initial humps.
We’ll make it fun
and easy to get over
the hump and on to
years of carving
fun.
16
Attachment IV
Supplier Tactical Matrix
Segment I-Supplier
Segment
Description
− Skiers/
Snowboard
ers
− Children <
16
− Active
Participant
− Local or
Destination
Strategic
Theme
Objective
Turn children New fun for the
into
whole family.
motivators,
not barriers.
Message
Tactical Execution
We’ve made it
− “Family Pak” buy child ski/snowboard, rebate on adult
much easier for you
shape ski/snowboard from same manufacturer. Media: onand your whole
pack, POS, coop, internet
family to enjoy the
wholesome,
outdoor experience
that is
skiing/boarding.
17
Attachment IV
Segment II-Supplier
−
−
−
−
Segment
Description
Skiers/
Snowboarders
Children < 16
Lapsed
Participant
Day or
Destination
Strategic
Theme
Objective
Turn
Your kids
children into will thank
motivators, you for it.
not barriers.
Message
Tactical Execution
Don’t you wish
− “My First Ski/Snowboard” gift package: Welcome and tips
you’d started skiing
on safety, clothing, stories, discounts on children’s apparel
when you were
and lessons. Media: coop advertising, on-package, in-store
your kid’s age?
− “The Scoop on Shapes”: Branded brochure about shape
Give them
skis-what to look for and how to get the most from our skis.
something they’ll
Distributed by retailers, given to renters or purchasers.
thank you for a
Media: coop advertising, on-package, in-store
lifetime.
18
Attachment IV
Segment III-Supplier
Segment
Description
− Skiers
Only
− No
Children
− Active
Participant
− Day
Strategic
Objective
Increase
level of
participation
and
proficiency.
Theme
Now you can
take full
advantage of
your backyard.
Message
Tactical Execution
With new, easier
technology and
teaching methods, it
is much easier for a
unique outdoors
experience in your
own backyard.
“Shape Ski Challenge.” Resort on-site demonstration day. Free
one-hour usage of equipment combined with hourly clinics on
“how to use technology". Provide rebate on purchase.
Media: resort partnership, radio, newsprint, internet
Segment IV-Supplier
19
Attachment IV
Segment
Description
− Skiers Only
− No
Children
− Active
Participant
Destination
Strategic
Objective
Increase
level of
participation
and
proficiency.
Theme
Message
Stay an extra
couple of days
and
“breakthrough.”
With new
technology and
teaching methods,
if you’re going to
make the trip take a
full week of lessons
and we guarantee
you will
“breakthrough” to
another level.
Segment V-Supplier
20
Tactical Execution
“Ski better, faster.” Branded brochure/in-store video about
shape skis-what to look for and how to get the most from our
skis. Distributed by retailers, given to renters or purchasers.
Provide shape skis lesson incentive on package.
Media: on-package, in-store, POS, ski resort partnership,
collateral.
Attachment IV
Segment
Strategic
Description
Objective
Try
skiing
− Skiers Only
again.
− No
Children
− Lapsed
Participant
− Day or
Destination
Theme
Message
Tactical Execution
It’s not as you
remember – it’s
a new sport.
With new
technology and
teaching methods,
skiing is a much
easier and more
enjoyable activity –
unlike any other.
You owe it to
yourself to try it
again – for the first
time.
− “The Scoop on Shapes”: Branded brochure about shape
skis-what to look for and how to get the most from our skis.
Distributed by retailers, given to renters or purchasers.
Media: coop advertising, on-package, in-store
− “Easy Carve” branded ski line. Product line specific to skier
converting from their older straight ski design. Package with
shape ski lesson at a variety of ski resorts throughout the
country. Media: national advertisement (vertical/horizontal
publications), direct mail (lapse skiers-resort ski schools,
SIA), Internet, on-package, resort partnership, in-store).
Segment VI-Supplier
21
Attachment IV
−
−
−
−
Segment
Description
Snowboarder
No Children
Active
Participant
Day
Strategic
Objective
Increase
level of
activity and
proficiency.
Theme
Message
Tactical Execution
Carve out
another couple
of days and
take full
advantage of
your own
backyard.
You’ve discovered
the unique
experience of
carving a turn on a
board, so carve out
another couple of
days and take full
advantage of that
discovery in your
own backyard.
− “It’s time to upgrade.” Like your computer, board
technology is racing ahead. Make product statements
comparing new advancements to older product lines. Drive
consumer to snowboard swap. Media: coop advertising,
retail swap partnership, on-package, internet, POS
− “Lease a board.” Lease a board and trade it in on new board
technology every two years. Media: coop advertising, onpackage, national print, in-store, POS, internet
Segment VII-Supplier
22
Attachment IV
−
−
−
−
Segment
Description
Snowboarder
No Children
Active
Participant
Destination
Strategic
Objective
Increase
level of
activity and
proficiency.
Theme
Carve out
another couple
of days and
discover even
more.
Message
Tactical Execution
If you’re going to
− “It’s time to upgrade.” Like your computer, board
make the trip, carve
technology is racing ahead. Make product statements
out a couple of
comparing new advancements to older product lines. Drive
extra days and find
consumer to snowboard swap. Media: coop advertising,
out how much more
retail swap partnership, on-package, internet, POS
there is to discover − “Lease a board.” Lease a board and trade it in on new board
in boarding with a
technology every two years. Media: coop advertising, onweek’s lesson.
package, national print, in-store, POS, internet
− “Team Rider.” Get the latest tips on how to be a better rider,
faster. Purchase our snowboard; get an automatic enrollment
into our “members only” web site. Contents include weekly
ride tips and daily chat rooms with one of the manufacturers
team riders. Plus special discounts on team merchandise.
− Media: On-package, coop advertisement, POS, direct mail,
internet, collateral
Segment VIII-Supplier
23
Attachment IV
−
−
−
−
Segment
Description
Snowboarder
No Children
Lapsed
Day or
Destination
Strategic
Objective
Try boarding
again.
Theme
It’s worth
another try,
and we’ll
make it easy
for you.
Message
Tactical Execution
Boarding is an
− “Snowboarding for Dummies.” Branded pamphlet providing
experience like no
helpful tips on how to snowboard for the first time, glossary
other, but you need
of snowboard lingo, insights into the best way to enter the
to get over the
sport, plus first time lesson incentives with purchase with
initial humps.
resorts nationwide. Media: on package, internet, POS, coop
We’ll make it fun
advertisement, ski resort partnership
and easy to get over
the hump and on to
years of carving
fun.
24
Attachment V
Growing the Industry
Marketing Analysis and Strategy
Attachment V
March 2000
F O C A L P O I N T/Z-Sport
Situation
z Ski days/sales flat, boarder growth slowing.
z Baby boomers nearing “retirement” age.
z Snow sports share of leisure time declining.
z Industry fragmented in response.
z Marketing resources limited.
z No clear understanding of the problem or the
solution.
1
Attachment V
The Challenge
zDevelop a unified understanding of the
marketing problems and opportunities.
zIdentify the market segments that hold
greatest “acceleration potential.”
zFocus industry marketing resources on
those productive audience segments.
zApply those resources in an integrated,
efficient approach to the market.
Project Process
z Reviewed & analyzed existing quantitative & qualitative
industry research.
z Developed strategic hypotheses about problems and
opportunities.
z Conducted focus groups to delve into hypotheses and
guide quantitative research.
z Conducted quantitative research to develop key
baseline data and validate hypotheses.
z Synthesized information into single analysis and set of
strategic marketing recommendations.
2
Attachment V
Summary of Key Observations
z The snow sports market is not monolithic - it is a market of diverse niches.
z Much of the industry’s advertising imagery
does not connect with the majority of snow
sporters.
z There is considerable untapped marketing
opportunity.
z There are many industry myths to
overcome.
The Opportunity
z Several key consumer trends in our direction.
¾ Spend more time in rural, scenic areas.
¾ Engage in more physically active outdoor activity.
¾ More wholesome fun for the entire family.
¾ Breaks from the stress and hectic pace of life.
y To change our approach to marketing and the
marketplace, to capture these trends before our
competition.
3
Attachment V
Industry Myths & Facts
Myth
Most skiers/boarders aspire to the
“extreme” or most demanding aspect of
the “sport.”
Fact
The “average” skier/boarder is less
ambitious, and seeks the more intrinsic
rewards of a wholesome, lifestyle “activity.”
How We’re Portraying Ourselves
Print and Web Content Analysis
Extreme/Air
Male
Under 30
Family
Editorial
77%
83%
85%
5%
Equipment
87%
90%
98%
0%
Resorts
60%
67%
86%
25%
Source: 1999 Magazine/Web Content Analysis by Focalpoint for SIA
4
Attachment V
Extreme or Serene
Growing the Snow Sports Industry
• “Everything communicates
messages to the consumer -products, service, liftlines, price,
advertising -- and your dominant
messages are currently ones of
exclusion, not inclusion.”
– Sergio Zyman
5
Attachment V
“Lifestyle” Benefits
Rated Highest
Percent Rating These Reasons High (8-10 on a 0-10 Scale)
in Contributing to their Enjoyment of Snow Sports
64%
Freedom/Getting Away
59%
Being with Family/Friends
55%
Being Outdoors
46%
Exercise and Athleticism
45%
Excitement/Thrill
42%
Challenge and Skill
38%
Travel/Scenery
0%
20%
40%
60%
80%
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
Reasons to Participate
Reflect Gender
Percent by Gender Rating These Reasons High (8-10 on a 010 Scale) in Contributing to their Enjoyment of Snow Sports
Freedom/Getting Away
Being with Family/Friends
52%
55%
55%
50%
42%
35%
53%
34%
49%
44%
32%
Being Outdoors
Exercise and Athleticism
Excitement/Thrill
Challenge and Skill
Travel/Scenery
0%
20%
40%
Males
60%
64%
63%
67%
80%
Females
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
6
Attachment V
Industry Myths & Facts
Myth
The dominant barrier to increased
participation is high cost.
Fact
The motivations for, and barriers to skiing
& boarding, involve a more complex value
proposition – time, quality of experience,
competitive interests, proficiency.
Negative Aspects of
Skiing/Boarding
Percent Rating These Reasons High (8-10 on a 010 Scale) as Worst Aspects of Snow Sports
48%
42%
42%
38%
Nobody to Go With
Not Fun Unless Good
Hard to Learn
Falling Down
32%
28%
27%
25%
Risk of Injury
Weather
Getting There
Hassle
22%
21%
Lift Lines
Expense
0%
10%
20%
30%
40%
50%
60%
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
7
Attachment V
Industry Myths & Facts
Myth
There is a fruitful marketing opportunity with nonskiers/boarders, particularly among minorities and
other “under-served” populations.
Fact
These misnamed “potentials” carry the additional
marketing burden of needing to be sold on winter
vacations, cold weather activity and adopting an
activity outside their peer group.
Potential Snow Sporters
Number of Vacations Taken This Winter
70%
58%
Disconcertingly, 58%
of “potentials” did
not take a vacation
the prior winter.
60%
50%
40%
28%
30%
20%
8%
3%
10%
2%
0%
4
5
1%
0%
None
1
2
3
6
Source: 1998 Potential Market for Skiers Study by Leisure Trends for SIA
8
Attachment V
Industry Myths & Facts
Myth
There is a single, silver bullet advertising message
that could motivate the vast majority of current and
potential skiers/boarders to participate more.
Fact
This diverse consumer base, with varying interests,
attitudes, ages and proficiencies, requires multiple
targeted messages.
Positive Aspects of
Skiing/Boarding
Percent by Proficiency Level Rating These
Reasons High (8-10 on a 0-10 Scale) in
Contributing to their Enjoyment of Snow Sports
63%
64%
Freedom/Getting
Away
56%
65%
57%
67%
Being with
Family/Friends
Intermediate
Adv/Expert
Beginner
56%
67%
Being Outdoors
39%
0%
20%
40%
60%
80%
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
9
Attachment V
Positive Aspects of
Skiing/Boarding
(cont.)
Percent by Proficiency Level Rating These
Reasons High (8-10 on a 0-10 Scale) in
Contributing to their Enjoyment of Snow Sports
33%
Exercise and
Athleticism
Challenge and
Skill
17%
49%
54%
35%
53%
15%
34%
42%
Excitement/Thrill
0%
20%
Adv/Expert
40%
Intermediate
60%
80%
Beginner
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
Industry Myths & Facts
Myth
Awareness of shaped skis and other
“make-it-easier technologies” and
their benefits is quite high.
Fact
Most skiers are not aware of the
relevant benefits of these
technologies.
10
Attachment V
Awareness of Shaped Skis
z Even among the “Avids” in our focus groups
there was very little awareness of the significance
of these technologies.
z Less than half (46%) of Skiing magazine
subscribers have tried them.
z However, of those who tried them, 62% bought a
pair.
z Of 12 incentives to participate more, offer of free
trial of new tech was #1.
Source: 1998/9 Subscriber/Reader Profiles by RRC for The Skiing Company,
1999 Segmentation Study and Focus Groups by Focalpoint/FSR for SIA
Strategic Hypotheses
zThere is a strong relationship between
proficiency, enthusiasm, participation
and sales -- perhaps proficiency =
confidence.
11
Attachment V
Enthusiasm Increases
with Proficiency
Mean Rating of Enthusiasm for Snow Sports (0 = “Not at All;”
10 = “ Extremely”) by Proficiency Level
9.7
Expert
8.2
Intermediate
4.6
Beginner
0
2
4
6
8
Not at all
10
Extremely
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
Competitive Appeal
Increases with Proficiency
Percent of Skiers by Proficiency Level Rating it as
Their Favorite or 2nd Favorite Recreational Activity
70%
59%
60%
40%
50%
40%
20%
30%
8%
20%
10%
0%
Adv.
Inter.
Beg.
Lapsed
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
12
Attachment V
Participation Increases with
Proficiency
Participation in Past 12 Months by Proficiency Level
6%
16%
Over 12 Days
48%
8%
41%
38%
7-12 Days
86%
1-6 Days
43%
14%
0%
20%
40%
Advanced/Expert
60%
Intermediate
80%
100%
Beginner
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
Increased Proficiency Likely
to Increase Participation
Percentage of each Proficiency Level Stating They
Would Be “Much More Likely To Increase” Participation
53%
If "I Were Better
At It…"
27%
8%
0%
20%
Adv/Expert
40%
Intermediate
60%
80%
Beginner
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
13
Attachment V
Strategic Hypotheses
z There is a strong relationship between
proficiency, enthusiasm, participation
and sales -- perhaps proficiency =
confidence.
z The industry is bleeding new triers and
participants of low proficiency.
Attrition Appears to be Higher
Among the Less Proficient
Current (participated in past 12 months) vs. Lapsed
(not participated in past 12 months) by Proficiency Level
Expert
Advanced
7
3
23
7
20%
34
High Intermediate
31
26
Low Intermediate
36
10
Beginner
20
%
Lapsed Skiers
Current Skiers
Source: 1998 Potential Market for Skiers Study by Leisure Trends for SIA
14
Attachment V
Strategic Hypotheses
z There is a strong relationship between
proficiency, enthusiasm, participation
and sales -- perhaps proficiency =
confidence.
z The industry is bleeding new triers
and participants of low proficiency.
z The greatest opportunity lies in
reactivating lapsed and upgrading
light and moderate users.
Marketing Opportunity
100% = 13
million
Heavy
5
Moderate
26
Light
26
53.9
million
$1.5
billion
15
43
The greatest opportunity to
increase participation and
sales is to upgrade
moderate and light users.
33
32
Intermittent
New
35
9
8
10
6
Active
Skiers
Skier
Days
26
18
8
Equipment
Demand
Source: 1987/8 Building Industry Profits Report by McKinsey & Co. for SIA & NSAA,
primary data from NSGA & Simmons
15
Attachment V
Strategic Hypotheses
z There is a strong relationship between
proficiency, enthusiasm, participation and
sales -- perhaps proficiency = confidence.
z The industry is bleeding new triers and
participants of low proficiency.
z The greatest opportunity lies in reactivating
lapsed, upgrading light and moderate users.
z The new equipment technology can produce
significant marketing leverage.
Most Appealing Things
Industry Could Do
Percent by Proficiency Level Rating These
Benefits High (8-10 on a 0-10 Scale) as Reasons
They Would Increase Participation
39%
Free New
Equipment Trial
42%
Season Passes at
Multiple Resorts
29%
Individual Season
Passes Under $200
Installment Plans for
Season Passes
20%
Adv/Expert
59%
47%
24%
30%
37%
25%
25%
34%
Family Season
Passes for $595
0%
59%
66%
40%
Intermediate
68%
62%
60%
80%
Beginner
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
16
Attachment V
Most Appealing Things
Industry Could Do (cont.)
Percent by Proficiency Level Rating These
Benefits High (8-10 on a 0-10 Scale) as Reasons
They Would Increase Participation
47%
Lift Tickets &
Lessons Packge
37%
27%
44%
Lessons w/
Guarantee
30%
39%
42%
Guaranteed
Good
Experience
0%
20%
Adv/Expert
40%
Intermediate
53%
57%
60%
80%
Beginner
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
Strategic Hypotheses
z There is a strong relationship between
proficiency, enthusiasm, participation and
sales -- perhaps proficiency = confidence.
z The industry is bleeding new triers and
participants of low proficiency.
z The greatest opportunity lies in reactivating
lapsed, upgrading light and moderate users.
z The new equipment technology can produce
significant marketing leverage.
z Children can be either a critical barrier or
motivator.
17
Attachment V
Including Children Can
Be a Motivator
Percent by Gender of Parents with Children Under
10 Years Old Who Would Ski More “If It Were
Easier to Include Your Children”
Don't Know
1%
1%
29%
No More Likely
35%
18%
23%
Somewhat More
Likely
52%
Much More Likely
0%
41%
10%
20%
30%
Males
40%
50%
60%
Females
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
The Earlier The Better
Percent of each Proficiency Group Who Started
Skiing/Boarding Before Age 15
28%
Beginner
42%
Intermediate
67%
Adv/Expert
0%
20%
40%
60%
80%
Source: 1999 SIA Segmentation Study by Focalpoint/FSR for SIA
18
Attachment V
Proficiency
The Value of Starting Young
Advanced
Intermediate
Starting @ Age 10
Starting @ Age 25
Beginner
0
5
10
15
Source: 1999 Analysis/Concept Development by Focalpoint for SIA
20
25
30
35
40
45
50
Age
Lifetime Value
Starting at Age 25
Item*
Skis
Boots
Bindings
Apparel
Accessories
Lift Tickets
Food/Beverage
Lodging
Retail Price Units/Year Years
$331
$255
$148
$216
$28
$44
$25
$150
TOTAL
AVERAGE/YEAR
* Purchased at Specialty Store
0.15
0.15
0.15
0.075
0.75
4
4
2
20
20
20
20
20
20
20
20
Total
$993
$765
$444
$324
$420
$3,520
$2,000
$6,000
$14,466
$723
Source: 1999 Analysis of SIA Data by Focalpoint for SIA
19
Attachment V
Lifetime Value
Starting at Age 10
Item*
Retail Price Units/Year Years
Skis
Boots
Bindings
Apparel
Accessories
Lift Tickets
Food/Beverage
Lodging
$331
$255
$148
$216
$28
$44
$25
$150
0.2
0.2
0.2
0.1
1
10
10
4
35
35
35
35
35
35
35
35
TOTAL
AVERAGE/YEAR
* Purchased at Specialty Store
Total
$2,317
$1,785
$1,036
$756
$980
$15,400
$8,750
$21,000
$52,024
$1,487
Source: 1999 Analysis of SIA Data by Focalpoint for SIA
A New Approach
zView market as the sum of many
segments.
20
Attachment V
Segmentation Variables
Behavior
z
z
z
z
z
z
z
Boarder/ Skier
Day v. Destination
Rent v. Own
Ski Days
Type of Pass
Lessons
Promotional
Responsiveness
Proficiency
z
z
z
z
z
Advanced/Expert
Intermediate
Beginner
Lapsed
Potential
Psychographics
z
z
z
z
Importance of skiing
Thrill seeker v. escape
Other activities
Media interests
Demographics
z
z
z
z
z
z
z
Age
Gender
Income
Occupation
Family Status/Children
Region
Ethnicity
A Practical First Step
Focus Your Marketing Strategies and Plans on
the “Big Three” Segmentation Criteria
z Behavior: Skier or Boarder, Day or
Destination.
z Value/Proficiency: Intermediate, Beginner or
Lapsed.
z One Demographic: Children < 16 or
No Children < 16.
21
Attachment V
A New Approach
zView market as the sum of many parts.
zLearn who your customers are by
segment.
When You Move to the Next
Level...
Potential
Value
Share of
Wallet
Segment
Customer
Database
Demographics
Skier or
Boarder
Destination
or day
• Value
• Attitudes
• Needs
• Behavior
Barriers Proficiency
22
Attachment V
A New Approach
zView market as the sum of many parts.
zLearn who your customers are by
segment.
zAllocate marketing resources based on
potential customer value.
Because That’s Where The
Money is . . .
Invest Where There is the Greatest Acceleration Potential
Heavy
Moderate
Light
Intermittent
New
100% = 13
million
5
26
53.9
million
$1.5
billion
43
33
< Intermediates
32
26
< Beginners
9
10
6
Skier
Days
18
26
35
8
Active
Skiers
Invest in:
15
< Lapsed
8
Equipment
Demand
Source: 1987/8 Building Industry Profits Report by McKinsey & Co. for SIA & NSAA,
primary data from NSGA & Simmons
23
Attachment V
A New Approach
z View market as the sum of many parts.
z Learn who your customers are by segment.
z Allocate marketing resources based on
potential customer value.
z Communicate the strengths of “brand
snow sports” in terms relevant to each
segment.
Different Strokes . . .
Join our Boarder’s Pioneer Club and
receive special benefits starting with
a Special Boarder Season Pass.
Don’t you wish your parents had
started you skiing at your kids’
ages?
Try it again for the first time, it’s a
completely new experience.
Intermediate
Boarder
Day Tripper
Beginner Skier
Children
< 16 yrs.
Lapsed Skier
No Children
24
Attachment V
Specific Strategies
z Capture critical customer information – name,
address, proficiency, frequency, etc.
z Invest in growing proficiency – not just spend
against price – “top of mountain in one week.”
z Leverage the full potential of season passes –
tenure, condition “guarantee,” recognition.
z Bundle price – value days, family packages.
z Turn children into motivators, not barriers –
discount kids, ski school, special promotions.
z Reward loyalty and heavy users.
Specific Strategies
z Use affinity marketing for recruiting – groups of
clones, proficiency threshold.
z Target lapsed for reactivation – “try again for the
first time,” “black and blue special.”
z Target beginners and intermediates for upgrades
– “up a notch in a week.”
z Focus on kids’ lifetime value – “at last, kids are
VIPs,” “your mountain.”
z Time marketing to purchase decision cycle –
“winterize the mountain bike, tune the skis.”
25
Attachment V
The Bottom Line . . .
z We have an opportunity to launch a Snowsports
Renaissance.
z We must view our market as many segments with
different values, needs, attitudes, behaviors.
z Our messaging and offers must reflect these
differences and begin to build relationships.
z We should target the “growth” segments -- lapsed,
beginners and lower intermediates.
z We should trumpet new, “easier” technology to
make them feel welcome, successful, confident.
The Bottom Line . . .
Get them in early . . .
and make them better.
26