Download Columbia IMC Plan - Don Cheney | Portfolio

MKTG 420: Group 6 – Columbia Sportswear EXECUTIVE SUMMARY
Internal Environment
In 1938, Columbia Sportswear was founded by Paul and Marie Lamfrom in Portland, Oregon. The
company introduced its sportswear line in 1985 under Gert and Tim Boyle. From then on, the
company has focused on continually improving their products and technology.
External Environment
Columbia Sportswear is in an industry that has seen recent consumer trends involving flashy,
bright colors. These consumers spend nearly $1.25 billion each year on snow sports apparel.
Competitive Analysis
The ski apparel industry is competitive; The North Face is dominating the market and others like
Spyder and Saloman have created stiff competition for Columbia.
History of Advertising
Print ads have been the core of Columbia’s advertising, focusing on Gert Boyle as the
spokesperson. The style has grown stale and consumers have lost interest.
Objectives
1. Increase online sales of jackets by 20% in the 18-25 year old customer segment by 2014.
2. Match or surpass The North Face’s sales in the next 5 years. (long-term: $325,000,000)
3. Increase brand awareness to Generation Y through social media, sponsorships, contests,
and special promotions.
Key Issues
The key issues for Columbia are revamping the brand image and being able to acquire user
participation in the process.
Advertising Strategy
The new advertising campaign will target 18-25 year old skiers and snowboarders with a trendier
image and the opportunity to win a sponsorship from Columbia.
Implementation
Ads will be run in magazines and on television, selected to gain exposure among the target
consumers. facebook will play a major role as the platform for the Elite Fleet contest.
Financials
The total cost of this campaign is expected to be $2.47 million. Breaking even will require
additional sales, approximately 25,000 pieces of apparel.
Conclusion
Columbia is already an established brand, but it needs to improve its advertising reach. With the
success of these objectives, the brand’s new positioning will appeal more to Generation Y.
MKTG 420: Group 6 – Columbia Sportswear INDEX
Situation Analysis
2
Internal Analysis
2
External Environment
3
Competitive Analysis
3
History of Advertising
5
SWOT Analysis
7
Advertising Objectives
9
Key Issues
9
Advertising Strategy
10
Advertising Campaign
11
New Slogan
11
Contest
11
Support Advertising
12
Implementation of IMC Plan
12
Financials
13
Control and Contingency
15
Appendix
16
1 MKTG 420: Group 6 – Columbia Sportswear SITUATION ANALYSIS
Internal Analysis
Columbia Sportswear, originally known as the Columbia Hat Company, was established in 1938
by Paul and Marie Lamfrom after they fled from Nazi Germany and settled in Portland, Oregon.
The company was named after the historic and beautiful Columbia River, which was not far from
where the headquarters were located. In 1960, Gert Boyle (daughter of Paul and Marie Lamfrom)
designed the company’s very first fishing vest. From then on, the company would be called
Columbia Sportswear. Just ten years later in 1970, Gert’s husband Neal suffered a fatal heart
attack, leaving Gert responsible for the company.1
Gert enlisted the help of her son, Tim Boyle, a University of Oregon senior at the time. The two
worked tirelessly in order to save the company from bankruptcy. The next fifteen years were spent
developing an entire sportswear line, which was launched in 1985. A core piece of the sportswear
line was the “Bugaboo Parka,” which featured advanced technology. The Bugaboo Parka was the
item that essentially reformed the way downhill skiers dressed for the mountain. 2
In 1996, the company’s flagship store in Portland, Oregon had its grand opening. Two years later
in 1998 Columbia went public and also became a sponsor of the Olympic games in Sydney. In the
year 2000 Columbia acquired Sorel, a company that was incredibly popular and successful in
Canada for its high quality snow/winter boots. Columbia also acquired Mountain Hardware in
2004. Mountain Hardware was a California-based company known for its outdoor equipment such
as tents, sleeping bags, etc. and was a pivotal addition to Columbia Sportswear. This in this same
year, Columbia hit a giant benchmark: it finally reached $1 billion in annual sales. Two years
later, in 2006, Columbia acquired two more companies: Pacific Trail and Montrail. Soon after
these acquisitions, Columbia Sportswear began expanding rapidly and became available in over 70
different countries.2 Since then Columbia has continually been a leader in the ski apparel industry,
winning several awards for their technological creations and consistently revolutionizing apparel
in the ski world.
1
2
http://en.wikipedia.org/wiki/Columbia_Sportswear
http://www.columbia.com/About-Us/About_Us_Landing,default,pg.html 2 MKTG 420: Group 6 – Columbia Sportswear External Environment
The ski apparel industry has grown substantially in recent years. Large contests and events, such
as the X-Games and the Olympics, have brought TV exposure and advertisers to the industry.
More people have been able to see what the skiing world is all about and companies have
capitalized on it. There are many competitors in the ski clothing industry and they are all vying for
the attention of consumers. Much of the technology behind the jackets and pants is similar, but
competitors develop unique designs and sponsor big names to differentiate themselves. For
example, Burton endorses one of the most famous names in snowboarding history, Shaun White.
He has helped Burton’s brand rise to the top of the industry.
Consumers in the apparel category are attracted to flashy, bright colors. The overall culture of
skiing is about standing out and being unique. Even with the high demand to be distinct,
consumers also want a functional product that will keep them warm and dry in the harshest of
conditions. With regards to advertising, companies use a multitude of different strategies and
media vehicles. They place pictures of sponsored athletes in magazines riding in the Alaskan
backcountry or they sponsor big events like the X-Games. Another huge part of this industry is the
production of films. Companies sponsor riders and help them pay to produce documentaries that
serve as product placement opportunities for brands.
The ski industry has recently taken a hard hit because of the Great Recession. People have less
money to go out and spend on their hobbies. Skiing is an expensive sport, many people are
choosing to cut back or quit entirely. With declining number of skiers there is less of a demand for
outerwear.
Competitive Analysis
The Ski Apparel market segment presents a strong competitive field that Columbia must
outperform. According to Snow Sports Industries America, consumers spend nearly $1.25 billion
dollars per year on apparel.3 Columbia may have serious competition, but that billion-dollar
market is worth the fight.
3 http://www.snowsports.org/Retailers/Research/SnowSportsFactSheet/ 3 MKTG 420: Group 6 – Columbia Sportswear The North Face
The North Face is Columbia’s greatest competitor. They are the industry leader in sales volume,
selling over $325 million in apparel.4 The brand’s image is also similar to that of Columbia’s,
mature and functional. In terms of style, The North Face has a more fashionable image than
Columbia that has allowed it to attract more customers and dominate the market.5
•
•
•
•
Strengths: The North Face’s ability to fuse product style and functionality has made it the
market leader, with over $325 million in apparel sales. With its dominance, The North
Face has built large base of brand loyal customers.
Weaknesses: The North Face is strongest in the Pacific Northwest and the brand has
become a western stereotype, which makes attracting customers from different regions
challenging.
Opportunities: With the strength of its winter apparel, The North Face could expand into
just about any new apparel market.
Threats: Market saturation given the durability of The North Face’s products is a threat.
Climate changes that make warm apparel unnecessary also threaten sales.
Spyder
Spyder is a high-end brand primarily used in ski and snowboard competitions, it has an edgy
image and mixes performance with style. Spyder markets primarily to racers, but appeals to avid
non-competitive skiers as well.6
•
•
•
•
Strengths: Spyder is a high profile brand that dominates the competitive skiing market,
predominantly with skin tight racing suits. The brand has leveraged its sponsorships of
Olympic athletes to build strong perceived value.
Weaknesses: As a racing brand, casual skiers are less likely to purchase products made by
Spyder, because they do not identify with the racing culture.
Opportunities: With a strong brand in a respected category (racing), the opportunity to
branch off and expand into the casual market is strong. With the upcoming 2014 Olympics,
Spyder has the opportunity to gain recognition internationally on skiing’s highest stage.
Threats: The industry is trending towards fewer ski trips per year, which reduces avidity
and the likelihood that consumers will be interested in high end racing apparel.
Saloman
In the Skiing industry, Saloman is a complete brand. It manufactures everything consumers need
to participate in snow sports from skis to gloves, Saloman can satisfy the needs of consumers.
4
Snow Sports Industries America
www.thenorthface.com
6
www.Spyder.com
5
4 MKTG 420: Group 6 – Columbia Sportswear Saloman caters predominantly to older skiers who are heavy users, but ski in a casual manner.7
•
•
•
•
Strengths: Saloman is a complete ski supplier, making skis, boots, and apparel. They are a
high-end brand with top quality products. The full service nature of the brand lends to
customer confidence across its entire product line.
Weaknesses: With a diverse range of ski products, Saloman may be stretching itself thin
and be incapable of producing any one product at a higher quality than its competitors.
Opportunities: As a supplier of all types of ski products, Saloman has the potential to be
skier’s exclusive brand.
Threats: As an equipment supplier, Saloman faces the threat of consumers trending
towards rentals and away from purchasing skis.
Burton
Burton is a snowboard apparel brand. It is a rebellious brand that aligns well with the counter
culture among snowboarders. Their products are trendy and eye catching, as opposed to the
functionality based Columbia products. With trends toward stylish apparel, Burton, although not a
Ski, company may threaten Columbia in the ski market if Columbia is unable to satisfy the style
needs of consumers.8
•
•
•
•
Strengths: Burton is a major player in the snowboarding category and has captivated
consumers with stylish products. The brand’s image also appeals to the rebellious nature of
snowboarders.
Weaknesses: Burton is focused on style, making it weaker than other brands in terms of
product functionality and durability.
Opportunities: As a snowboarding brand, Burton has the opportunity to expand into skiing
and could threaten Columbia.
Threats: Like all companies in the industry, Burton is threatened by climate change and
trends away from snow sports.
History of Advertising
Gert Boyle could not have turned Columbia Sportswear into the billion-dollar business it is now
without effective advertising. In fact, one of her main theories in the late 1980’s and early 1990’s
when Columbia was still a small company was “early to bed, early to rise, work like hell and
advertise”.9 It’s easy to see that the company readily endorsed that motto.
In the past Columbia Sportswear marketed itself primarily through national television ad
7
www.saloman.com 8 www.burton.com 9 http://www.youtube.com/watch?v=E4u_VPAMiRY
5 MKTG 420: Group 6 – Columbia Sportswear campaigns, print, and some sponsorship. The key to its success, however, was relying on its new
and innovative products. One of Columbia’s most innovative products at the time was the
“Bugaboo”. This was a key in keeping the company out of bankruptcy after Gert’s father passed
away. Columbia advertised this product by placing print ads in the newspaper that clearly depicted
the fact that there were three coats in one; a shell and a liner, or both together. As of today they
have sold over 5 million Bugaboos.10
Columbia’s business really took off after they decided to reposition themselves. Instead of making
commercials about how outdoorsmen are tough, they embraced the fact that a woman owned a
“man’s” company and started using Gert as a spokesperson. In the first national television ad, Gert
sent her son, Tim, through a car wash. Not only did it get the point across that they test their gear
tough, but many people also found the commercial to be hilarious. Another hit commercial with
consumers was based on Gert throwing her son off a cliff and almost hitting the ground but a rope
of Columbia garments saved his life. These ads were successful because they were memorable,
unlike the majority other commercials.
Nowadays, Columbia does not focus on national television advertisement. Instead, it focuses
primarily on Internet and print ads. One way that Columbia advertises online is through its
YouTube channel. It has several humorous ads that market everything from shoes to jackets. One
commercial revolves around a taste test where they put hot dog buns in two people’s jackets (one
being a Columbia jacket and one being a competitor’s) and make them go mountain biking. When
they come back one bun is soaked in sweat and the other is dry, which promotes the breathability
of Columbia’s jacket on the mountain.
One tactic Columbia has not used frequently is sponsorship of athletes and events. Other
competitors such as The North Face spend much more of their budgets on sponsoring huge
sporting events, movies, and athletes.
10
6 http://www.youtube.com/watch?v=E4u_VPAMiRY
MKTG 420: Group 6 – Columbia Sportswear SWOT ANALYSIS
Strengths
In the target segment of skiers, Columbia has established itself as a reliable brand. The primary
point of differentiation for Columbia is product quality, few brands produce products that are as
durable and capable as Columbia. The high quality products have built brand equity for Columbia.
Skiers of all levels are concerned with remaining dry and warm on the mountain and Columbia
has built a reputation for providing consumers with these user benefits that have created a lot of
value for the brand. The innovation used to produce these functional products has allowed
Columbia to remain a perennial contender in the Ski Apparel Industry.
Another strength of Columbia is that it has strong retail distribution through major sporting stores
such as Dick’s Sporting Goods, REI, Sports Authority, and Cabela’s. The company is also
profitable off its own retail stores, which are located throughout the United States. Lastly,
Columbia has a strong online presence on its company website, Columbia.com. The website
provides consumers with a wide array of interactive options such as online shopping, a store
locator, videos, and blog posts. The website also features information and tutorials with regards to
Columbia’s mobile apps, appealing to the younger segment of outdoor enthusiasts.
7 MKTG 420: Group 6 – Columbia Sportswear Weaknesses
With The North Face dominating the Ski Apparel Industry, Columbia clearly has weaknesses that
it needs to overcome. The greatest weakness is the brand’s image. Columbia’s brand has a number
of issues that are preventing it from gaining market share. The first is that it feels stale. Columbia
has focused its product development on functionality and that has led to bland style. The North
Face and others have managed to incorporate both style and functionality, placing them safely
ahead of Columbia in the market. The advertising has not helped that image. Promoting the brand
as being run by an elderly lady has turned many young consumers away.
Another weakness is that Columbia only provides a line of clothing for skiers, yet the growth and
popularity of snowboarding has been steadily increasing. That is a very large market that is not
currently being served by Columbia. Also, skiers and snowboarders have drastically different
personalities, so making the brand exclusive to skiers likely means that snowboarders will not
identify with the brand
Opportunities
Columbia is highly regarded among Generation X consumers because of its image of being
functional and tough. It has a great opportunity to market towards the younger age group, as they
are new to the sport. This generation’s numbers are continually growing and they are the future of
the industry. Secondly, the number of people switching from skiing to snowboarding is increasing.
With a focus on snowboarders, Columbia could increase its reach in the apparel industry.
Columbia’s advertisements are mainly directed toward males. With a large number of female
riders out there, it could benefit from diversifying its messages. Finally, as the use of social media
continues to grow, Columbia can create viral ad campaigns that will attract a multitude of different
users. Whether it is YouTube or facebook, Columbia needs to integrate a social media campaign.
Threats
Companies that focus more on their aesthetic appeal than the functionality of their product are a
threat to Columbia. Some consumers are more focused on how they look rather than how their
gear performs. Another big threat to Columbia is companies like Saloman that not only make ski
apparel but also make top of the line equipment. Consumers often get the idea that if a brand
8 MKTG 420: Group 6 – Columbia Sportswear makes good skis, it will make good apparel and that could hurt Columbia’s market share.
A macro-economic threat that Columbia could face is the lack of demand for cold weather gear
due to global warming. If winters become less intense, a lot of its cutting edge technology will be
unnecessary. Another macro-economic threat could be a recession. Columbia produces top of the
line gear so if people have less money to spend, they will be more likely to compromise and buy
from mediocre producers.
ADVERTISING OBJECTIVES
This Integrated Marketing Communications Plan will increase Columbia’s market share in the ski
apparel industry by repositioning the brand with a new advertising campaign. The objectives that
will help to reach the ultimate goal are:
1. Increase online sales of jackets by 20% to the 18-25 year old customer segment by 2014.
2. Match or surpass The North Face’s sales in the next 5 years. (long-term)
3. Increase brand awareness to generation Y through sponsorships, contests, and special
promotions.
KEY ISSUES
A few key issues that Columbia is facing revolve around the repositioning of Columbia’s ski line.
Essentially, the plan attempts to turn a somewhat stale and dull line of ski gear into a more
modern, hip, and trendy line that appeals to both skiers and snowboarders. This could pose a
challenge for Columbia considering its ski line has remained “plain” in the eyes of consumers for
a number of years.
Another key issue that Columbia faces involves using consumer-generated content. In order for a
consumer-generated contest to be successful, consumers must buy in and participate. The
challenge lies in the fact that it can be difficult to gain the necessary buy in from the younger
demographic that is being targeted. Consumers of this segment are often hard to convince, as they
are becoming more and more skeptical toward the corporate world.
9 MKTG 420: Group 6 – Columbia Sportswear ADVERTISING STRATEGY
Target Market
Geographic
The advertising campaign will target the United States nationally. The goal is to capture as many
young snow sport enthusiasts as possible, so advertising will be focused throughout the skiing
hotbeds in the country. Targeted areas include Oregon, Washington, California, Colorado,
Vermont, New York, Minnesota, Michigan, Alaska, etc. The campaign will not run in the
Southern states, because skiing and snowboarding are not prevalent in these warmer climates.
Demographic
The goal is to influence the age group of 18-25 year old males and females. These consumers have
a decent discretionary income, as many are in college, still receiving support from their parents.
They also have the time necessary to participate because most do not have family commitments at
this point in their lives. Most skiers are male (61%) and the majority of them are between 18 and
34 years old, clearly indicating opportunity among these consumers.11
Psychographic
Avid skiers and casual skiers fit into similar psychographic descriptions. Avid skiers are in tune
and up to date with the industry’s technology, whether it be apparel or filming equipment. They
communicate through internet blogs and sponsored/unsponsored events. Casual skiers are actually
fairly knowledgeable about the industry as well. They have a passion for the outdoors and the
main thing separating them from avid skiers is free time, because skiing is an expensive, time
consuming sport. Overall, the typical target consumer’s psychographics incorporate: an active
lifestyle, passion for skiing/outdoors, and an easygoing, yet determined personality.
Positioning Statement
Columbia seeks to facilitate all outdoor adventurers in their pursuit of excitement across a range of
activities by supplying the best and most appealing products on the market.
In the past, Columbia’s image has been that of a family owned company focused on providing
11
Snow Sports Industries America
10 MKTG 420: Group 6 – Columbia Sportswear durable and functional products. Advertising focused on Gert Boyle as a rare female leader of a
sports company. That positioning has gone stale and this new advertising campaign is aimed at
reinvigorating the brand image.
ADVERTISING CAMPAIGN
New Slogan
– See Appendix
In support of repositioning, the slogan “Rule The Mountain” will be adopted for Columbia’s snow
sport apparel. Columbia needs something with which younger consumers can relate. The desire to
possess and control aspects of the world is part of human nature and Generation Y’s feeling of
disenfranchisement amplifies that yearning and causes them to clutch at anything that provides a
sense of control. As a whole, Generation Y also feels as if it is meant for more, longing to achieve
something great. This slogan appeals to that nature by conveying the message that the product can
help them achieve greatness in the form of performance in snow sports. Most importantly, this
new slogan transitions Columbia from a quirky brand that supplies good products, to a brand with
flair and the ability to improve the lives of consumers.
Contest
Overview
The main piece of Columbia’s advertising campaign will be a contest that engages consumers by
allowing them to produce original content for the chance to win a sponsorship. Skiers and
snowboarders will film themselves on the slopes performing their best tricks and upload the
highlight reel footage for others to judge throughout the snow season. The videos will be uploaded
to facebook, where the number of Likes will determine the winners of the competition. After the
season, one male and one female will be crowned by their peers and awarded a comprehensive
apparel sponsorship from Columbia and have their videos featured on Columbia’s YouTube
channel. The winners will also be featured in the next year’s contest. This competition will take
place annually and the winners will be known as Columbia’s Elite Fleet.
Operation
As videos are uploaded to Columbia’s facebook page, it will be the responsibility of the
contestants to drive traffic to their videos in order to win the competition. For people to like the
videos, they will be required to like Columbia’s page, exponentially increasing the reach of
11 MKTG 420: Group 6 – Columbia Sportswear Columbia’s social media efforts. Videos will also be uploaded on various skiing and
snowboarding websites that will drive traffic to the facebook page and assist in allowing the
competition to spread virally.
Launch – See Appendix
In order to launch this competition, Columbia will run an ad called Elite Fleet as an introduction
to the contest. The ad will say: “At Columbia, we play King of the Hill differently,” then there will
be a series of skiing and snowboarding highlights to illustrate the message. The commercial will
then ask the question say: “Do you have what it takes to Rule the Mountain and earn your spot in
Columbia’s Elite Fleet?” To close, the ad will direct viewers to facebook for rules and entry.
Support Advertising
Sick Day – See Appendix
To drive home the new positioning, Columbia will release a Sick Day commercial. The Sick Day
commercial will combine a little bit of humor with Columbia’s new, exciting, brand image. The ad
will start with the quote: “If you don’t do it this year, you’ll be one year older when you do” from
world-renowned skier Warren Miller to reinforce the new position of an exciting and competitive
brand. Then the video will transition to a student emailing his/her teacher saying that she/he is sick
and cannot attend class as she/he is arriving at a mountain. The student will then be shown
performing some “sick” tricks on the slopes. Throughout the video, there will be text to emphasize
that a sick day means a great day on the mountain for Columbia.
Where Does Columbia Take You?
Another part of the IMC plan is the use of social media. Columbia will launch a program where
users of Columbia products can post pictures of themselves in awe-inspiring locations. Hopefully,
riders will send pictures of themselves on top of the mountain sporting Columbia jackets, pants,
etc. to build even more awareness.
IMPLEMENTATION OF IMC CAMPAIGN
To achieve the IMC goals with a multi-level advertising campaign, three mediums will be
incorporated. The new IMC campaign will consist of:
12 MKTG 420: Group 6 – Columbia Sportswear PRINT ADS
Print ads will feature the theme from the Sick Day commercial. Each ad will have a picture from
the mountain with the Columbia logo and slogan, “Rule the Mountain.” The ads will be placed
strategically in college student promotional handbooks, ESPN magazine, Sports Illustrated, and
Transworld Snowboarding and Skiing magazines. The ads will also run as banners on the side of
internet sites such as ESPN.com, dogfunk.com, and other ski sites.
TV Commercials
Both the Elite Fleet and Sick Day commercials will run on TV, playing on ESPN, Discovery
Channel, and the Outdoor Channel. The ads will be run twice during two-hour prime time blocks
for the best opportunity to reach the target audience. The ads will be run on 12 days over the
course of the snow season.
Social Media
The Where Does Columbia Take You? campaign will run through Twitter and Instagram. It will be
managed by the current social media team and will therefore require no additional spending.
Milestones
•
•
•
•
August 15th- Begin awareness for the Elite Week contest via Twitter
November, December and January - Release print ads in ESPN, Sports Illustrated, and
Skiing and Snowboarding magazine.
December - Run TV commercials on ESPN, Discover, and the Outdoor Channel.
o Have 200 user videos submitted for Elite Fleet competition
May 1st - Announce Elite Fleet winners
FINANCIALS
In order to effectively implement this integrated marketing communications plan, Columbia will
have to incur the following costs:
The Sick Day print ads will be one of the most expensive parts of the campaign because of the
total number of ads. There are going to make a total of 3 different ads and place them each at the
same time in the different magazines for 3 consecutive issues. The estimated labor and materials
13 MKTG 420: Group 6 – Columbia Sportswear costs to make the 3 ads is $5,000, which will include paying the designer. Then, to place the ads in
these three magazines will be:
ESPN magazine12 - Full page color ad in three issues=
Sports Illustrated13 - Full page, four color ad in three issues=
Skiing/snowboarding magazines14 - full page color ad in three issues=
$225,818*3
$238,000*3
$40, 000*3
$1,511,454
The Elite fleet video contest will be very cheap to implement. The cost for advertising this is
already taken into account in our print ads. At the bottom of the ads there will be writing directing
potential contestants to the facebook page for more information. There will also be banner ads
placed on Columbia.com. The estimated costs are around $1,000- that includes a designers labor
time.
= $1,000
The Where does Columbia take you? campaign will also be inexpensive. Like the video contest,
there will be writing on the full-page ads that informs consumers about campaign. Consumers
should take over and transforms it into a viral campaign. This will cost no money to implement
and the cost of the text is already taken into account in the print ads.
The Sick Day TV commercial will be another expensive part of the budget. This commercial will
be produced to make Columbia standout to younger audiences. Production will cost $5,000, which
includes paying a skier/snowboarder and editing costs. The cost of airing this commercial on
Monday- Wednesday for an entire month will be:
ESPN15 - 30 second ad twice from 8-10pm E.T. =
Discovery16 - 30 second ad twice from 6-8pm E.T.=
Outdoor Network - 30 second ad twice from 7-9pm E.T=
Total Cost:
$20,000*2 per night *12 days
$11,000* 2 per night*12 days
$8,000*2 per night *12 days
=$936,000
TOTAL=2,448,454
12
http://www.espncms.com/magazine/espn-the-magazine/2012-rates-specs.aspx
http://sportsillustrated.cnn.com/adinfo/si/ratecardframe.html
14
http://www.gaebler.com/Skiing+Magazine-magazine-advertising-costs++30845
15
http://domainshane.com/the-average-cost-of-a-30-second-spot-on-national-tv-104051-and-a-domain/
16
http://www.adweek.com/news/television/their-prime-broadcast-spot-costs-soar-132805
13
14 MKTG 420: Group 6 – Columbia Sportswear CONTROLS & CONTINGENCY
Objectives
1. Increase online sales of jackets by 20% to the 18-25 year old customer segment by 2014.
2. Match or surpass The North Face’s sales in the next 5 years. (long-term)
3. Increase brand awareness to Generation Y through sponsorships, contests, and special
promotions.
Objective Measurement
The first objective will be measured by simply implementing a short survey before consumers
check out of Columbia’s online store. The survey will include demographic information only, such
as age, location, and gender. The customers will not be able to proceed to the purchase
screen until they have completed the survey. This will allow the measurement of online jacket
sales to 18-25 year old segment and if the 20% growth goal is being met.
The easiest objective to measure will be Columbia’s sales compared to North Face’s sales. Both
Columbia and North Face are publicly traded companies so it will be easy to compare their sales
and compare the growth. In 2017, if Columbia’s sales are greater than North Face, the goal will be
accomplished.
Brand awareness will be measured by the number of Elite Fleet contest videos that are received.
The goal for number of video entries is 1,000. If 1,000 video entries are submitted, that will be a
good indication of an increase in brand awareness from this specific age demographic (entries
must be made by consumers 18-25 years old). Also, sales growth will be measured after the two
winners are selected and their videos are aired on Columbia’s YouTube channel.
If contestants do not enter the Elite Fleet contest, the plan will shift to sponsorships. Columbia
will pursue contracts with established athletes and reexamine the messaging to determine if it is
consistent with the desires of consumers.
15 MKTG 420: Group 6 – Columbia Sportswear APPENDIX
Slogan: Elite Fleet: Video -­‐ http://doncheney.com/portfolio/columbia-­‐sportswear/ 16 MKTG 420: Group 6 – Columbia Sportswear Sick Day: Video -­‐ http://doncheney.com/portfolio/columbia-­‐sportswear/ 17