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New Product Development& Marketing plan:Columbia Snowboards

Corporate Development and Strategies: Alexey TsukanovProduct Development & Research: Fabricio SchnorembergerProduct Augmentation and Communication: Aygun Suleymanova

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Company History:

Founded 1937 by Paul and Marie Lamfrom in Portland, Oregon. Began asa small hat distributor but quickly expanded into outerwear, sportswear,footwear, accessories, and equipment.Columbia Sportswear Commercial

Mission Statement:Columbia Sportswear outfits outdoor enthusiasts with unmatchedperformance and advanced technology from head to toe with

outerwear, sportswear, footwear, and accessories

Key competitors: The North Face, Patagonia, Timberland

Industry BackgroundApparel Manufacturing Industry, (subsector Outerwear Manufacturing)$7.2 Billion, 6% growth - 2006

2007 2006 2005 2004 2003

Net Sales $1,356,039 $1,287,672 $1,555,791 $1,095,307 $951,786

Net Income $144,452 $123,018 $130,736 $138,624 $120,121

http://www.youtube.com/watch?v=TeaI-UAH4gkhttp://www.youtube.com/watch?v=TeaI-UAH4gk

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Our recommendation is to expand into sports equipment industry by offering a full line ofsnowboards and snowboard equipment.

This strategy fits with Columbias mission statement of offering high quality head to toeproducts for outdoor enthusiasts.

IndustryRivalry: Medium.

Products are interchangeableNumerous establishedcompetitors

Supplier Power: Low.

Raw materials (wood)are plentiful, no threatof forward integration.

Buyer Power: Low.

products sold through manysmaller retailers withlimited bargaining power.

Threat of Entry: Low. High BrandAwareness, economies of scale.

Substitutes: Medium. Otherextreme sports such as mountainbiking, climbing, etc

Sports Equipment Industry Five Force

Analysis

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BroadMarket

NarrowMarket

Cost Leadership Differentiation

Burton*Columbia*

Mash

Atomic

Empire

- Sports Equipment is a $25 billion

industry. Snowboardingsubcategory of the SportsEquipment Industry is a $500million industry.

- Very high growth rate.

Customer base has increasedfrom 2.5 million in mid 90s toover 5 million today.

- More than half of the marketshare is owned by Burtons

Snowboards.

-Opportunity exists for a highquality snowboards offered to abroad market

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Strengths:

- Strong brand-name that issynonymous with quality anddurability- Healthy financials- Innovative marketing-Reputation as an eco-friendlycompany

Weaknesses:

- Slowdown in revenue growthdue to increased costs andincreased competition- International expansion hasnot been very successful

Opportunities:-Very fast growing industry- Strong demand for highquality, durable products

- Emerging markets show goodfuture potential

Threats:-Economic slowdown maynegatively affect demand- Unpredictable seasonality and

warmer winters may reducedemand- Burton Snowboards is a verystrong competitor

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- Columbias strategicgrowth entailsexpanding productoffering for every

outdoor segment

- Our recommendationis to acquire a premiumsnowboardmanufacturer andmarket their productsunder Columbia brand

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Segment: regular snowboarders-practitioners Size: 7.1 million Growth rate: 30% Access to segment: accessible Geographic concentration: US and Europe Emotional motives: high Company fit & ease of business

Other business opportunities provided by thesegment: immersion in extreme-sports!

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Demographics

most snowboarders are 12-to-24-year-olds females make up roughly 25 percent

Geographic targeting: US (38 states)

Social/cultural influences

inspired by surfing and skateboarding came to rebel the more sophisticated way of skiing Snowboarders stereotypes: "lazy", "grungy", "punk", "stoners", "troublemakers"

Purchasing behavior: high appealing durable good

less frequent purchases greater consumer investment more intensive personal selling

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Columbia conveys functionality, durability and high

quality associated with active, healthy lifestyle brand extension opportunity: positive consumer

expectations, retailer support, leverage current brandawareness, and reduced cost of the launch campaign

Create the perception of high value-added product Association with Columbias points-of-parity

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Achieve market share large enough to consolidate the new

product line as a strong competitor in the market.

Create an association of snowboarding equipments andColumbias name inside the target audiences minds.

Making Columbias snowboards available and reachable forany American customer.

Convey a high-quality message about the new product line tothe target audience.

Achieve 5% of market share in revenue measure ($24.4M annualsales) in the second year.

Sponsor 2 of the 5 best snowboarding professionals in the UnitedStates at the end of 1 year. Sponsor at least 2 major US snowboarding competitions at the

end of 1 year. Having snowboards available in all states where snowboarding

resorts are popular at the end of 1 year. Reach superior product performance indicators than any

industry competitor in 1 year

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a board that slides on snow

shape with front and back upturned

high speed and agility; noscratches, and graphics printed on both sides.

3-years warranty; freeengraving; option to customize

boards made of lighter materials,such as titanium, aluminum, or carbon fiber.

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Performance

high performance levels constantly assessed: indoor, in a science lab; and

outdoor, a team of pros and amateurs will take the

boards to the slopes and subject them to differentriding styles and terrains

Price-value-quality relationship

both amateurs and professionals it is imperative to deliver a highvalue-added productpractice of higher prices than the

average of competition

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Brand name Logo design

Warranty Package trade dress Customer Relationship Building programs Customer Service requirements Trade-in; Financing

On-line community building plan Other augmentation

Engraving Customization

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Distribution requirements demanded bythe target market

Distribution intensity policy Channel path selection

Supply-chain partners selection

Channel diplomacy Reseller program

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Target audience profile: Channels to be used

On-line;

Colleges; Snow resort regions

Geographic coverage Frequency Key Messages:

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Pro

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Pro