California State University, Los Angeles
Principals of Marketing: MKT 500
Dr. Iksuk Kim
Fall Quarter 2007
Arredondo, Belen
Enriquez-Marquez, Martin
Fuentes, William
Hung, Sheng Hsiung
Wei, Dan
1) The environmental forces influencing the snowboarding industry are: Social: Winter Sports declining
Alpine Skiers 1993 10.6 million 4.6% USA
Alpine Skiers 2003 6.3 million 2.6% USA Demographics
80% participants were under 24 years old, median age 15.7 years, 74+% male
Y Generation 72 Million
Economic:
30% of ski passes are snowboarding passes
Ski lodges losing 1/3 of market share
Price range for equipment $300 - $800
Affluent Caucasian market
Technological:
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Innovative sleek designs
Competitive:
Burton 38%
Competition 62%
K2: 31%
Lamar 7%
Salomon 6%
Rossignol 4%
Gnu 3%
Regulatory:
Lobbying ski resorts for more access to ski slopes
2) The differences in marketing goals for Burton Snowboarding in both (a) Its early years while developing the industry:
Become sole/leading supplier of Snowboards
Introduce the sport of Snowboarding
Lobby ski resorts to allow Snowboarders on their slopes
Maximize profits
Profit Responsibility
(b) Today with growing competition:
Stakeholder responsibility
Societal responsibility
Ads in Snowboarder and Transworld SNOWboarding Magazines
Sponsor Athletes: Global Team (17), Kelly Clark, Chris Klug and Ross Powers
Innovative sleek designs
Advertise to younger crowd
Retaining original customers happy (baby boomers)
Additional merchandise such as clothing and pipe boards
3) The marketing mix we would recommend for Burton given the changes occurring in the snowboarding marketplace is:
Product
Offer an innovative, sleek designed product that appeals to everyone individually (ex.
Children, teens, athletes, women, etc.); clothing and accessories
Price
A competitively priced product that has a variety of price ranges that everyone can afford respectively ($300 - $800)
Promotion
Hold events at local and major ski resorts all around the world
provide incentives such as discount coupons or buy one get one free alternatives Advertise with celebrities
Special discounts for long term customers
Place
Stores
Ski Resorts
Schools in areas where snow is available during the season
Specialty stores,
National chains
4) The image of snowboarding will be affected if more skiers or older participants take up the sport because:
More revenue from skiers
Stimulate innovation due to a new client base
Snowboarding might not be considered edgy enough (older participants)
Profits continue to grow or level off due to baby boomers
Reputable due to long term customers
May shift from an older audience to a much younger one (15.7 years of age)