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Jennifer Westra , Alexandra Tobin, Griffin Turnipseed

Jennifer Westra , Alexandra Tobin, Griffin Turnipseed. Key Terms. Freeskiing : freestyle, backcountry, urban, telemarking , and other extreme disciplines, along with related snowboarding disciplines. - Differentiated from family-oriented, casual, and racing markets of skiing.

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Jennifer Westra , Alexandra Tobin, Griffin Turnipseed

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  1. Jennifer Westra, Alexandra Tobin, Griffin Turnipseed

  2. Key Terms Freeskiing: freestyle, backcountry, urban, telemarking, and other extreme disciplines, along with related snowboarding disciplines. -Differentiated from family-oriented, casual, and racing markets of skiing. Skier Participation: the total number of visits to all areas in a market within a given year. -Not the number of unique skiers to areas within the market/ year.

  3. Internal Analysis

  4. Company Background • Owner: Jim Borchardt • Location: Boulder • Year Founded: 2011 • High quality ski and snowboard outerwear • Jim in charge of all business functions • Assistance from friends and family • Currently sponsors 11 riders • Colorado and Utah

  5. Current Product • Two main products: • Onward jacket • Upward pant • 8 colorways • Men’s M, L, XL • Differentiate through fit • High quality, many features

  6. Current Price • Onward Jacket starts at $250 • Upward Pant starts at $190 • Competitively priced • Average Northface jacket: $450 • Average boutique jacket: $300 • Prices vary greatly

  7. CURRENT PLACE • Majority of sales on website • Distributes from home in Boulder • One brick and mortar location • Retailer buyer power • Many personal sales • Some Boulder Freeride "Snovember” sales Borchardt, J. (2012, October 5). Email Interview

  8. Current promotion • Boulder Freerideevents (Personal selling) • Promotional materials -stickers, banners, business cards (Advertising) • Social media - facebook, twitter, instagram, newschoolers.com (Internet) • Direct mail (Direct Mail) • Testimonial, blog, and newsletter sections of company website (PR) • Coupons and discounts (Sales Promotion) • Sponsor 11 actively competing skiers and snowboarders (Sponsorship) Borchardt, J. (2012, October 5). Email Interview

  9. Operations and Manufacturing • Illustrator to design • Denver-based manufacturer Sans • Sans production facility in China • 5 months total Borchardt, J. (2012, October 5). Email Interview

  10. Mission Statement • No official mission statement • From Bloom website: • We are unconventional, we are refreshing, we are different, and we will pay attention to you…We create stylish, sleek, and handsome outerwear that is high quality and technicality that we keep you, our loyal customer, warm, dry, and looking good.

  11. Research • Informal combined with experience • Primary Research: • Personal Interviews • Ski outerwear industry professionals • Customer Responses • Secondary Research: • Ski Industry Magazines • Online Research • Competitor Information • Newschoolers.com • Target Market Information • *Borschardt, J. (2012, October 4). Email Interview

  12. Research • Informal combined with experience • Primary Research: • Personal Interviews • Ski outerwear industry professionals • Customer Responses • Secondary Research: • Ski Industry Magazines • Online Research • Competitor Information • Newschoolers.com • Target Market Information • *Borschardt, J. (2012, October 4). Email Interview

  13. Development • Initial Investment (2009): $1000 • Local seamstress • Never produced • Lack of experience and preparation • Created Design Booklet (2011) • Used previous knowledge • 20-30 pages of future designs • Sent Designs to Sans (2011) • Development and feedback • Recorded Customer Reponses (2012) • Used for upcoming product

  14. Current Target Market • No current formal target market • Implicit market served: • Demographic: males, 16-30, in Colorado • Socio-economic: mid- upper mid class • Lifestyle: active in freeskiing community Borchardt, J. (2012, October 18). Email Interview

  15. Finances • Funded entirely by personal investment • Profits currently reinvested • All accounting and finance done internally • Large portion of capital currently tied in inventory Borchardt, J. (2012, October 18). Email Interview

  16. Internal Information Tech • Operates www.bloomouterwear.com domain as a e-commerce site • Includes capacity for customer relationship building • Product design done through use of Adobe Illustrator • No formal CRM or accounting software currently in use Borchardt, J. (2012, October 18). Email Interview

  17. External Analysis

  18. Legal, regulatory, and political • Laws surround children’s outerwear • Does not currently affect Bloom • Bloom operates exclusively in the U.S. • Political stability not a concern • Changes in the fiscal/ economic climate may affect sales

  19. Social Trends • New outerwear fights air pollution • Trends emerging this season: • Bright simple colors & color-blocking • Faux fur • Recycled outerwear • Waterproof/breathable outerwear • Baggy jackets & pants – new trend • for telemark skiers • Retro styles • Longer hem coats • Metcalf, John. (2012). High-Tech Outerwear Designed to Fight Air Pollution. The Atlantic Cities. Retrieved from http://www.theatlanticcities.com/design/2012/07/high-tech-outerwear-designed-fight-air-pollution/2593/ • Braveskimom. (2011). What's Hot When You're Out in the Cold. The Brave Ski Mom. Retrieved from http://braveskimom.com/ski-fashion-2012-whats-hot-when-youre-out-in-the-cold • Larsen, Melissa and Michelson, Megan. (2011). Innovations on Snow. ESPN. Retrieved from http://espn.go.com/action/freeskiing/story/_/id/7005441/2011-12-winter-ski-snowboard-gear-guide • Fuller, Kim. (2011). On Vail's slopes, the cool kids go bright. Vail Daily. Retrieved from http://www.vaildaily.com/article/20111117/AE/111119875 • (2012). Aspen Fashion Week 2012. Skinet. Retrieved from http://www.skinet.com/ski/olgallery/55576030/55576031 • Stavo-Debauge, Sandra. (2012). Ski wear trends from 2012/2013. wintersports.com. Retrieved from http://www.winter-sports.com/EN/Articles/skiwear2012-2013.php

  20. Technological Environment • Machine Operated Functions: • Design • CAD programs • Adobe Illustrator • Sewing • Inspection • Human, hands on involvement minimal • Manufacturing generally outsourced to Asia

  21. Economic Environment • Very slow GDP growth • Unemployment rate    • slowly declining • US trade ↑ • Although trend of economic growth, economy still recovering from crisis in 2009 • Tourism ↑ • *Photo: http://www.bls.gov Colorado

  22. Natural Environment • Ski Season: Mid October- Early June • Common Weather in Colorado: • 300 days of sunshine • 300+ inches of snowfall in mountains • Wildfires common • Extreme weather changes common • Weather Affecting Business: • Sales  in warmer months • Major weather patterns may affect shipping of product • Large snow storms affecting travel from out-of-state • *www.coloradoski.com • *Wikipedia.org

  23. Ski Industry Environment • 2010/ 2011 season saw largest skier participation in history • Rates have recovered since falling in 2008 • Rocky Mountain region 34.42% of all U.S. skier participation • Industry forecasted to grow 2012-2016 RRC, A. (2011, June 01). Kottke national end of season survey 2010/2011. Retrieved from http://www.nsaa.org/nsaa/press/historical-visits.pdf First, R. (2012, September 10). Ski facilities - quarterly update 9/10/2012. Retrieved from http://search.proquest.com/docview/1038940138/13993825ABE5C576ECC/1?

  24. Ski Industry Environment • Marketing efforts shifting • Environmentalism, all-season operations, and freeskiing • Forecasted industry wide growth • Average marketing budget 3.9% of revenue • Mature, saturated industry First, R. (2012, September 10). Ski facilities - quarterly update 9/10/2012. Retrieved from http://search.proquest.com/docview/1038940138/13993825ABE5C576ECC/1?

  25. Freeskiing Specific Industry • Colorado has lead the way in freeskiing • Nearby mountains with best rated terrain parks • Many CO mountains expanding to more off-piste terrain • Influx of freeskiing related events First, R. (2012, September 10). Ski facilities - quarterly update 9/10/2012. Retrieved from http://search.proquest.com/docview/1038940138/13993825ABE5C576ECC/1?

  26. Target Market Factors • Summit and Eagle counties fastest growing in key demo • Most of key demo makes over $50k/yr • Wealthiest visitors in U.S. ski market • Men in 18-34 demo expected to grow by 6% by 2016 • Skiers: 60% male, avg age- 30 • Snowboarders: 70% male, avg age-24 National Ski and Snowboard Retailers Association. (2011) Downhill Ski Participation. National Ski Areas Association. Retrieved from http://www.nsaa.org/nsaa/press/industryStats.asp National Ski and Snowboarders Retailers Association. (2011) Snowboarding Participation. National Ski Areas Association. Retrieved from http://www.nsaa.org/nsaa/press/industryStats.asp University of Utah. (2012) Ski Industry Demographics. Marriot Library, University of Utah. Retrieved from http://campusguides.lib.utah.edu/content.php?pid=79127&sid=649229

  27. Competitive Environment • The largest ski industry conglomerates all make products in the freeskiing outerwear category • Also several large players specifically in Freeskiing category • Not precisely direct competition to Bloom • All share several characteristics About k2 sports. (2012, June 10). Retrieved from http://www.k2sports.com/about

  28. Boutique Outerwear Competition • Specific category: Boutique Freeskiing Outerwear • Several direct competitors • Similar characteristics: • Small product lines, reliance on online distribution, prices around $275/ jacket Borchardt, J. (2012, October 18). Email Interview

  29. S.W.O.T.

  30. Strengths • High quality product at a competitive price point • Direct contact with customer base • Professionally designed website • Personalized promotion strategies • Passionate team who actively participate in the freeskiing industry

  31. Weaknesses • Company funds tied up in inventory • No defined marketing strategy • Few distribution outlets • No formal staff, all company activities rely on Jim • Dependence on one product, limited consumer choices

  32. Opportunities • Target Market Trends • Freeskiing • Slimmer fit preference • Color-blocking preference • Location • Colorado leading ski state • Most out-of-state visitors • Population Growth in Bloom’s Markets • Summit and Eagle county fastest growing • Colorado’s Natural Environment • Long winters • Use beyond ski resort season • Economic • Skier participation  despite suffering economy

  33. Threats • Mature Industry • Little growth • Big market leaders • Customers stolen from competitors • Competition • Boutique outwear competition  • Market leader presence in Bloom category • Sell Bloom substitutes • Economies of scale advantage=  prices • Retailer Bargaining Power • Demand high mark-ups • Large slotting fees • Economy • Further downturn could  need for luxury

  34. Marketing Plan 2013-2014

  35. Top level marketing objective • Sales Objective: $100,000 • Sell out of 2013/2014 inventory • Includes expanded inventory • Sell 70% at MSRP, 20% at discount, and 10% for promo • 50% of sales at retailers, and 50% online • Fiscal Period: • September 1, 2013- August 31, 2014

  36. Marketing Budget • Overall marketing expense • 10% of revenue, $10,000 • The Bloom product is currently in introduction stage

  37. New Target Market • Expanding to Include Women • Simmons Metrics: • 18-29, Colorado, who own a snowboard or skis, have skied or snowboarded with the last 12 months, who enjoy quality apparel, and prefer shopping at local stores • Size: 4 million • Reduced to account only for freeskiers • Estimated Size: 2.5 million

  38. New Product Strategy • Expand product line • Women’s: Bloomette • T-shirts and beanies • Remaining inventory after giveaways • Expand target market • Improve R&D • Order prototypes well in advance, opportunity to test before going to market

  39. New Price Strategy • Increase MSRP to $265 for jackets and $205 for pants • $15 increase on both units • Offer $15 discount for online orders • Purpose: • Improve bargaining power • Incentive for online purchase • Allot 70% at MSRP 20% Discount, and 10% Promo

  40. New place strategy • Enter 6 Retail Stores • Boulder • Breckenridge • Keystone • Vail • Avon • Aspen • 36 units per store • Supplement Online Sales • Convenience, product trial, and awareness

  41. Onward Upward And 2013-2014 Integrated Marketing Campaign Inspired Designs, Growing Beyond.

  42. Personal selling • B2B: Selling Product to Retailers • Objective: Increase product availability, stimulate trial • Measure: 6 Colorado retailers • B2C: In-store Rep • Objective: Stimulate trial, provide information, lower cognitive dissonance • Measure: 1 retailer per day, 3 weekends in December; 5 items sold each day • B2C: Booth Work • Objective: Provide information, increase brand awareness, develop brand image, collect customer information • Measure: Attend 5 Boulder Freeride events, Kings of Campus Rail Jam Event, speak with 25+ per event • Guerilla Tactics • Objective: Provide information, increasing brand interest, collect customer information • Measure: Each rep speaks with 25+ per event • Budget: $1,000RelevanceIncreased availability and product demonstration will lead to increased sales

  43. Print advertising • Powder, Rooster, Colorado Daily Ads    • Objective: Brand awareness, drive site traffic, efficient reach of target market • Measure: 600,000 impressions, 2.5% QR code scan rate • Budget: $3,200RelevanceIncreased reach to target market leads to higher sales

  44. Support advertising • Promotional Material Production • Objective: Generate buzz, increase brand interest • Measure: Pass out allotted t-shirts and beanies • Budget: $2,300RelevancePlace Bloom in evoked set for outerwear purchases

  45. Direct Marketing • Direct Mail • Objective: Personal relationship cultivation, increase coupon redemption, promote brand loyalty • Measure: Send 400 personalized cards, 150 birthday cards, 150 thank you cards • 20% newsletter sign up, 10% coupon redemption • Newsletter (Email) • Objective: Brand loyalty, provide information • Measure: 50% open rate • Unique Coupon Codes • QR Codes • Budget: $500 • Relevance • Coupons provide incentive for online purchases, personalized mailings encourage repeat purchases

  46. Sales Promotion • Online Discount • Objective: Drive traffic to site • Measure: 50% sales made online • Booth Work • Premiums • Coupons • No monetary expense • Relevance • Creates urgency in the purchase process to drive revenue

  47. Public Relations • Press Release • Objective: Increase brand credibility, promote awareness, develop brand image • Measure: 1 press release sent to 500 news sources, 3 times throughout the year; coordinate with ad runs • Direct Mail • Booth Work • Blog/Newsletter • Social Media Involvement • Giveaways • Sponsored Athletes • Budget: $300 • Relevance • Credibility of company background builds trust and confidence in the product

  48. Athlete Sponsorship Strategy • Expand Bloom Team • Keep current men’s team structure • 6 full sponsors 6 on “Pro Form” team • Expand to women’s team, for women’s line • 2 full sponsored riders, 3 “Pro Form” • Each rider gets “giveaway bag” • Each rider enters 2-3 competitions/ season

  49. Athlete Sponsorship Strategy • Train team for personal selling • Bi-annual dinner meetings • Educate on product features, representing Bloom, and being liaison to the market. • Sponsorship Budget: $2,000 • Comm Objectives: foster brand image and awareness, provide product information, stimulate trial

  50. Internet Strategy • Expand newschoolers.com ads • Current CPM of $2.50 • Both banner and sponsored video ads • Unique links to track effectiveness • Create YouTube channel • Both monthly rider profiles, and company promo video • Integrated with NS and social media flow

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