SUUNTO PROJECTSUUNTO PROJECT“RAMPING UP SALES”“RAMPING UP SALES”

June 2003Vantaa, Finland

IBD team:Marybeth ThomsonCarlos RamirezYoungsuk KoShin Hamanaka

TABLE OF CONTENTSTABLE OF CONTENTS

Introduction

Communication Strategy

Distribution Strategy

Marketing Infrastructure

Programs and Tactics

Future Considerations

Appendix

INTRODUCTIONINTRODUCTION

IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO REALIZES THE IMPORTANCE OF IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO REALIZES THE IMPORTANCE OF TRANSITIONING FROM A STRONG R&D COMPANY TO A GLOBAL DESIRED SPORT BRAND TRANSITIONING FROM A STRONG R&D COMPANY TO A GLOBAL DESIRED SPORT BRAND COMPANY . . . COMPANY . . .

THE MOST DESIRED SPORT BRANDTHE MOST DESIRED SPORT BRAND

Suunto Achievements • Top technology company• Extremely knowledgeable R&D

group• Professional and ambitious team

on board• Well establish brand name in the

diving category• Successful introduction of

products• Diversification into new markets

Goals and Challenges • Revenue growth expectations and

pressure as the future of Amer Group• Market development for “sport

instruments”• Brand awareness development with

limited marketing resources in Finland or abroad

• Balance between R&D and marketing skills to surpass the transition phase

Recent Progress• Already recognized as the leading

provider of diving instruments• Gaining meaningful traction

among outdoor sports enthusiasts• Planned completion of product

matrix for all new markets• All progress supported by the

launch of suuntosports.com and an improved customer service infrastructure

. . . AND TO SUCCESSFULLY FACILITATE THIS SHIFT, THE COMPANY MUST UNDERSTAND THE . . . AND TO SUCCESSFULLY FACILITATE THIS SHIFT, THE COMPANY MUST UNDERSTAND THE END CUSTOMER WHEN DEVELOPING MARKETING STRATEGIESEND CUSTOMER WHEN DEVELOPING MARKETING STRATEGIES

Consumer

Consumer needs as the driver

New Product Development

Distribution Decisions

Communication Strategies

Pricing Decisions

R&D

Customer Feedback

Distribution Feedback

Market Research & Analysis

Suunto’s Goals and Strategy

SPECIFICALLY, THE COMPANY SHOULD IMPLEMENT A CONSUMER BEHAVIOR MODEL SPECIFICALLY, THE COMPANY SHOULD IMPLEMENT A CONSUMER BEHAVIOR MODEL CREATED AROUND HOW CUSTOMERS THINK, FEEL AND BEHAVE TO GUIDE DECISIONS CREATED AROUND HOW CUSTOMERS THINK, FEEL AND BEHAVE TO GUIDE DECISIONS PERTAINING TO PRODUCT, MESSAGE, PLACEMENT AND PRICINGPERTAINING TO PRODUCT, MESSAGE, PLACEMENT AND PRICING

FeelThink

Behave

Brand Awareness

Product Perceptions

Purchasing DecisionsConsumer Behavior

Building Consumer Behavior ProfileBuilding Consumer Behavior Profile

OUR TEAM DEVELOPED THE PRELIMINARY MODEL USING INFORMATION AVAILABLE WITHIN OUR TEAM DEVELOPED THE PRELIMINARY MODEL USING INFORMATION AVAILABLE WITHIN THE COMPANY AND FROM RETAILERS IN THE U.S. WITH THE OBJECTIVE OF UNDERSTANDING THE COMPANY AND FROM RETAILERS IN THE U.S. WITH THE OBJECTIVE OF UNDERSTANDING GENERAL CONSUMER BEHAVIOR CHARACTERISTICS THAT SHOULD BE CONSIDERED WHEN GENERAL CONSUMER BEHAVIOR CHARACTERISTICS THAT SHOULD BE CONSIDERED WHEN ESTABLISHING COMMUNICATION AND DISTRIBUTION PROGRAMSESTABLISHING COMMUNICATION AND DISTRIBUTION PROGRAMS

FeelThink

Behave

Brand Awareness

Product Perceptions

Purchasing Decisions

Store buyers interviews

Store visits

Suunto Product managers

Suunto survey

Consumer Behavior

Input Input Building Consumer Behavior ProfileBuilding Consumer Behavior Profile

Communication Programs

DistributionPrograms

SUUNTO MUST INTERNALIZE THIS PROCESS AND CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILESUUNTO MUST INTERNALIZE THIS PROCESS AND CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILE

Microsoft Research

Answers to who, why, how and where from the customer perspective

Need Recognition

Search for Alternatives

Evaluation of Alternatives

Purchase of the Product

Use of the Product

Thin

kTh

ink

Feel

Feel

Beh

ave

Beh

ave

Potential CustomerPotential Customer

Active participant

Median age of 30

Male dominated

High average income

High education level Technology proficient

Part of a community

Influenced by heroesTrend setter

Why do consumers desire a product?

Performance improvement; Performance verification; Direction; Safety; Image; StatusHow do consumers develop knowledge of product?

User advocates; Role model influence; Independent research; Retail salespersons; AdvertisingHow do consumers judges benefit of product?

Better game; Reliability; Quality; Ease of use; Offers features beyond “needs”; Style; Relative value

Where do consumers go to buy the product?

Consumers research the product and then go to the nearest store to get the final “push” to back up their decision of buying the product

BY UNDERSTANDING WHO IS SUUNTO’s POTENTIAL CUSTOMER, WHY HE BUYS, HOW HE BY UNDERSTANDING WHO IS SUUNTO’s POTENTIAL CUSTOMER, WHY HE BUYS, HOW HE SEARCHES FOR INFORMATION AND WHERE HE BUYS, SUUNTO WILL BE IN A BETTER SEARCHES FOR INFORMATION AND WHERE HE BUYS, SUUNTO WILL BE IN A BETTER POSITION TO DESIGN MARKETING STRATEGIES THAT WILL ULTIMATELY HELP THE COMPANY POSITION TO DESIGN MARKETING STRATEGIES THAT WILL ULTIMATELY HELP THE COMPANY TO INCREASE SALESTO INCREASE SALES

COMMUNICATION STRATEGYCOMMUNICATION STRATEGY

SA

LE

S

UNDERSTANDING SUUNTO’S CURRENT POSITION IN THE MARKET DEVELOPMENT CYCLE IS UNDERSTANDING SUUNTO’S CURRENT POSITION IN THE MARKET DEVELOPMENT CYCLE IS IMPORTANT TO DESIGNING AN APPROPRIATE COMMUNICATION STRATEGYIMPORTANT TO DESIGNING AN APPROPRIATE COMMUNICATION STRATEGY

Focus on communicating ability of product to differentiate or improve current performance.

Focus on stimulating solid references and reviews from the Early Adopters

Focus on creating brand image and on the communication of proven product results

Market Development Cycle

Early Adopters Early Majority Late Adopters Laggards

Mass media advertisingMass media advertisingGuerilla MarketingGuerilla Marketing

-

+

Bra

nd

Aw

aren

ess

Advertising Spending +-

Procter&GambleSpalding

Reebok

PumaSpeedo

MANY COMPANIES HAVE ACHIEVED STRONG BRAND AWARENESS WITHOUT MASSIVE MANY COMPANIES HAVE ACHIEVED STRONG BRAND AWARENESS WITHOUT MASSIVE ADVERTISING INVESTMENT, INSTEAD FOCUSING ON BUILDING BRANDS THROUGH GUERILLA ADVERTISING INVESTMENT, INSTEAD FOCUSING ON BUILDING BRANDS THROUGH GUERILLA MARKETING TACTICSMARKETING TACTICS

Brand Awareness vs. Ad Spending (Illustrative)

IllustrativeIllustrative

PUMA AND SPEEDO, BOTH WELL KNOWN SPORTING BRANDS, ARE GREAT EXAMPLES OF PUMA AND SPEEDO, BOTH WELL KNOWN SPORTING BRANDS, ARE GREAT EXAMPLES OF EFFECTIVE GUERILLA MARKETING, FOCUSING ON TARGETING CORE CONSUMERS THROUGH EFFECTIVE GUERILLA MARKETING, FOCUSING ON TARGETING CORE CONSUMERS THROUGH SELECTIVE COMMUNICATION METHODSSELECTIVE COMMUNICATION METHODS

(1) Sports Industry Brand and Athlete Awareness Study (2002)Source: Sporting Goods Business

Ranked 4th in brand awareness(1), spending less than $3M on advertising (2001)Conveying its message using a "seed-and-spread" strategy

• Works with a product placement agency to get its collections on musicians/actors

• Has non-financial relationships with artists • Maintains selective distribution in hip stores e.g., Barneys,

Urban OutfittersSuccessfully created a unique brand image on the street

• "We try to build as an alternative, anti-establishment brand" - Global Director of Brand Management

• "There's hipness to Puma right now, and that's why they only have to spend $3 million on advertising"

- President and CEO of TSE Sports and Entertainment

Ranked 9th in brand awareness(1), spending $2M on marketing in 2001Focuses on PR and relationship with targeted user groups

• Signs top swimmers as models/endorsers to get exposure (e.g., Olympics)

• 75 Speedo stores help increase brand awareness• Maintains relationship with over 800 swim clubs in US

Closely monitors and understands the consumer needs• "It's not just putting money behind ads, but finding new

opportunities and things that will hit your core market, and keeping you finger on the pulse of everything."

- President and CEO of TSE Sports and Entertainment

IN ADDITION TO TRADITIONAL DIRECT ADVERTISING TO POTENTIAL CUSTOMERS, SUUNTO’S IN ADDITION TO TRADITIONAL DIRECT ADVERTISING TO POTENTIAL CUSTOMERS, SUUNTO’S MARKETING TACTICS SHOULD AIM TO DEVELOP A POSITIVE COMMUNICATION LOOP AMONG MARKETING TACTICS SHOULD AIM TO DEVELOP A POSITIVE COMMUNICATION LOOP AMONG USERS AND POTENTIAL CUSTOMERS BY CREATING ADVOCATES FOR ITS PRODUCTSUSERS AND POTENTIAL CUSTOMERS BY CREATING ADVOCATES FOR ITS PRODUCTS

3. User Conversion

Focuses on the more traditional advertisement methods as well as on alternative methods to reach out to the target customer base.

2. Advocate Outreach

Focuses on building the opportunity for advocates to reach out and influence potential buyers

1. Post Purchase

Focuses on the conversion of an existing Suunto user into an advocate who has positive experience with Suunto products and/or services

POTENTIAL POTENTIAL CUSTOMERCUSTOMER

11

22

33

USERUSER

ADVOCATEADVOCATE

SUUNTO HAS BEEN ACTIVELY PURSUING VARIOUS PROMOTIONAL ACTIVITIES IN ALL STAGES SUUNTO HAS BEEN ACTIVELY PURSUING VARIOUS PROMOTIONAL ACTIVITIES IN ALL STAGES OF THE LOOP, HOWEVER SUUNTO MAY COORDINATE THE ACTIVITIES BETTER TO ACHIEVE OF THE LOOP, HOWEVER SUUNTO MAY COORDINATE THE ACTIVITIES BETTER TO ACHIEVE GREATER EFFICIENCYGREATER EFFICIENCY

USERUSER

ADVOCATEADVOCATE

1. Post Purchase• Post-purchase support through

HelpDesk• Information shared on Suunto

Sports.com (Forums, travel logs)

• FAQ, User Manual, warranty registration through Suunto. com

2. Advocate Outreach• Whistler/Blackcomb Partnership • Outdoor University• Association with various outdoor

organizations (NSP, PSIA)

3. User Conversion• Advertisement and product

reviews in specialty magazines• Retail support through displays,

brochures, and other POP materials

• Sponsorships (i.e. Whistler/ Blackcomb Freeride Team)

• Trade Shows (i.e. Outdoor Retailer Trade Show)

POTENTIAL POTENTIAL CUSTOMERCUSTOMER

COMMUNICATION PROGRAMS SHOULD BE DESIGNED TO SPECIFICALLY REACH CONSUMERS COMMUNICATION PROGRAMS SHOULD BE DESIGNED TO SPECIFICALLY REACH CONSUMERS AT ALL STAGES TO ENSURE NEW CUSTOMER ACQUISTION IS STIMULATED THROUGH MANY AT ALL STAGES TO ENSURE NEW CUSTOMER ACQUISTION IS STIMULATED THROUGH MANY ANGLESANGLES

Stage in Loop Initiative Description

Suuntosports. com

Suuntosports. com

Web ads and billboards

Web ads and billboards

Trial ProgramsTrial Programs

Post PurchasePost PurchasePost PurchasePost Purchase

User User ConversionConversion

User User ConversionConversion

• Provide incentives to turn active Suunto users into advocates through positive user experiences

• Give exclusive service/support to owners through Suunto.com, Suuntosports.com and other Suunto managed communication channels

• Develop and maintain a strong relationship with influential members of the community who actively communicate Suunto’s benefits to other users

• Tie up with well regarded schools in each sport segment and coordinate lessons which demonstrate the performance benefits of sports instruments

• Trial programs at targeted locations allow potential users to actually experience the benefits of Suunto products before taking the “plunge”

• Targeted advertisement through the web and through billboards is an efficient way to reach a larger portion of potential users

Tactics

Advocate Advocate OutreachOutreachAdvocate Advocate OutreachOutreach

Pro DealsPro Deals

Suunto Pro Lessons

Suunto Pro Lessons

• Periodic newsletter with user tips, special discount offers, and information on sport related activities

• Rewards such as Suunto branded hats/t-shirts for posting logs and referring new members

• Discount/Giveaways to influential community members (instructors, performers) to create instant advocates

• Trial programs allowing target users to use product for a limited amount of time

• Coordinated lessons structured around Suunto products to improve performance

• Billboard placement on highways leading up to major ski resorts/National Parks

• Web ads focused on major sports-related sites and technology/travel sites

CASE STUDY: TIVO HAS SUCCESSFULLY DEVELOPED A DEDICATED COMMUNITY AMONG CASE STUDY: TIVO HAS SUCCESSFULLY DEVELOPED A DEDICATED COMMUNITY AMONG EXISTING USERS BY SUPPORTING USER DRIVEN COMMUNITY SITES SUCH AS EXISTING USERS BY SUPPORTING USER DRIVEN COMMUNITY SITES SUCH AS TIVOCOMMUNITY.COM AND BY OFFERING EXCLUSIVE SERVICES TO ITS SUBSCRIBERSTIVOCOMMUNITY.COM AND BY OFFERING EXCLUSIVE SERVICES TO ITS SUBSCRIBERS

Post PurchasePost Purchase

The company encourages TiVo owners to host what might be dubbed "TiVo-ware parties," … TiVo-ware parties give non-users the chance to experience some of TiVo's features, such as pausing the show or rewinding it for an instant replay. TiVo sometimes

creates special content around a big event, such

as the Super Bowl or the Oscars, that only TiVo

owners can watch. – Fast Company

Emphatic TiVo fans came in droves. More than 100 members of the TiVo Community Forum clustered around a barbecue,

swapping screen names and software-upgrade tips. Most of them had never met. The

thread that binds these tech fans together is an unabashed love for TiVo, the

digital video recorder with a Mac-like devotion and following. – Tech TV

Total Cumulative Subscriptions

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Apr 30,2001

Jul 31,2001

Oct 31,2001

Jan 31,2002

Apr 30,2002

Jul 31,2002

Oct 31,2002

Jan 31,2003

CASE STUDY: PALM SUCCESSFULLY LAUNCHED ITS PDAs WITH MINIMAL ADVERTISEMENT CASE STUDY: PALM SUCCESSFULLY LAUNCHED ITS PDAs WITH MINIMAL ADVERTISEMENT SPENDING, INSTEAD RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH AS MONEY-SPENDING, INSTEAD RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH AS MONEY-BACK GUARANTEES AND REFERRAL PROGRAMSBACK GUARANTEES AND REFERRAL PROGRAMS

• The April 1996 launch of the PalmPilot™ in the U.S. market went ahead with a launch budget of less than $5M

• Palm began by “seeding models with influential analysts and journalists to get a buzz going...” (Khermouch, 1997)

• A no-questions-asked, money-back guarantee was offered to reduce the purchase risk to consumers

• Finally, simple customer loyalty programs were established, rewarding customers who referred new customers to Palm

Source: BusinessWeek

Advocate OutreachAdvocate Outreach

CASE STUDY: SUBARU HAS SUCCESSFULLY BRANDED ITSELF AS A SUPPLIER OF RUGGED CASE STUDY: SUBARU HAS SUCCESSFULLY BRANDED ITSELF AS A SUPPLIER OF RUGGED OUTDOOR VEHICLES BY ASSOCIATING ITSELF WITH MULTIPLE ORGANIZATIONS THROUGH A OUTDOOR VEHICLES BY ASSOCIATING ITSELF WITH MULTIPLE ORGANIZATIONS THROUGH A VIP PARTNERS PROGRAMVIP PARTNERS PROGRAM

Subaru VIP Partners ProgramMembers of participating organizations are now eligible for Subaru's VIP Partners Program. This program allows members to purchase or lease any new Subaru vehicle at dealer invoice cost. Savings may be as much as $1,300 - $3,000 off the manufacturer's suggested retail price, depending on model selected.

User ConversionUser Conversion

CASE STUDY: POLAR HAS AGGRESSIVELY PURSUED A COMPREHENSIVE COMMUNICATION CASE STUDY: POLAR HAS AGGRESSIVELY PURSUED A COMPREHENSIVE COMMUNICATION STRATEGY THROUGH PARTNERSHIPS AND GRASS ROOTS COMMUNCIATION AND HAVE STRATEGY THROUGH PARTNERSHIPS AND GRASS ROOTS COMMUNCIATION AND HAVE CAPTURED NEARLY 80% OF THE HEART RATE MONITOR MARKET IN THE U.S.CAPTURED NEARLY 80% OF THE HEART RATE MONITOR MARKET IN THE U.S.

User ConversionUser Conversion

Polar has integrated various low-cost tactics into a comprehensive communication strategy. As a result they have established themselves as the leading brand for HRMs, and have been wildly successful in converting potential users into actual customers.

Trial Program

Sweepstakes

Event Participation

Special Events

SUUNTO’S WHISTLER BLACKCOMB PROGRAM DEMONSTRATES THE SUCCESS OF AN SUUNTO’S WHISTLER BLACKCOMB PROGRAM DEMONSTRATES THE SUCCESS OF AN AGGRESSIVE APPROACH TO BRAND DEVELOPMENTAGGRESSIVE APPROACH TO BRAND DEVELOPMENT

Partnership activities include: Installation of 85 Digital Clocks (with altitude information) at the bottom, middle and top of all

lift stations, customer service locations, restaurants and ski schools Exclusive sponsorship of Whistler/Blackcomb Freeride team Supply of wristops to the Atomic Dave Murray Racing Camp coaches and to the top 20 Ski

Instructors & the 2 Demo Teams

Benefits to Suunto: Rights to use the Official Whistler/Blackcomb logo in all advertising Suunto Station installed in the Mountaintop Business center allows S6 users to download

data and print results Visibility to over 2.2 million visitors to the mountains and over 7 million hits on their web site Realization of $27,000 increase in sales in the Whistler area alone

Cost to Suunto: $16,000

KEY TAKEAWAYS – COMMUNICATION STRATEGYKEY TAKEAWAYS – COMMUNICATION STRATEGY

In order to reach a larger audience of potential customers, Suunto must pursue a more broad-based communication strategyMany companies have successfully built brand awareness without substantial expense by using creative guerilla marketing tactics to facilitate word-of-mouth momentum

• Suunto’s post purchase relationship with users through Suuntosports.com is a strong start to creating a loyal user base that will ultimately drive growth in the U.S. market

• In the Tactics and Programs section of this report, specific ideas are outlined. The objective of these programs is to create Suunto advocates, strengthen product awareness and build the Suunto brand

• Virtual Caddy, Smart Sailing and S6 Try MeAdditionally, Billboard and Web advertising is recommended in the Tactics and Programs section as a means of expanding reach to a broader audience than current sport specific print mediaTargeted partnerships such as that at Whistler/Blackcomb are a highly visible and efficient way to increase awareness among potential customers and create brand loyalty among core users

DISTRIBUTION STRATEGYDISTRIBUTION STRATEGY

Functions/ CharacteristicsSpecialty

Sports ChainSpecialty Sports

IndependentsGeneral Sports

Technology Category Killers

Watch Specialty

Fashion

Gol

f Chan

nels

Specia

lty R

etai

lers

Pro S

hops

Disco

unters

Prim

ary

Match to Customer Target 5 5 4 2 1 3Accessibility to Customer Target 3 2 3 4 1 2Complementary Brand Image 5 3 3 4 3 5Image Fit - Sport Equipment Concept 5 5 4 1 1 1Image Fit - Computer Concept 2 1 2 5 2 1Sport Knowledge of Sales Staff 5 5 3 1 1 1Tech Knowledge of Sales Staff 2 1 2 5 2 1Customer Service 4 5 3 3 5 3Market Research/ Feedback Potential 4 2 3 2 1 1Prominence of Product Placement 3 2 3 4 4 2Potential to Carry Full Product Line 2 1 4 5 5 1Scalability for Future Product Lines 3 2 5 5 1 2

Weighted Channel Attractiveness Index 10.91 8.69 9.60 10.09 6.34 5.80

Prim

ary

Seco

ndar

yIN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS NEEDED TO SERVE SUUNTO’S IN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS NEEDED TO SERVE SUUNTO’S TYPICAL CONSUMER WITH THE DISTRIBUTION CHANNELS APPROPRIATE FOR THE WRISTOP TYPICAL CONSUMER WITH THE DISTRIBUTION CHANNELS APPROPRIATE FOR THE WRISTOP PRODUCTS RESULTED IN A RANKING LED BY SPECIALTY SPORTS CHAINS, BUT ALSO SHOWS PRODUCTS RESULTED IN A RANKING LED BY SPECIALTY SPORTS CHAINS, BUT ALSO SHOWS CATEGORY KILLERS AND GENERAL SPORTS ARE INTERESTING CHANNELS TO EXPLORE CATEGORY KILLERS AND GENERAL SPORTS ARE INTERESTING CHANNELS TO EXPLORE

The Index is calculated as a sum of the average of Primary and Secondary functions, with Primary functions receiving 200% weighting and Secondary functions receiving 100% weighting.Functions/ Characteristics definitions are in the Appendix section; Examples of channels above: Specialty Sports Chain: REI/ West Marine; General Sports: Sports Authority; Technology Category Killer: Best Buy; Watch Specialty – Torneau; Fashion - Barneys

General Sports35%

Footwear & Apparel33%

Specialty Sports - Outdoor

16%

Manufacturer Owned5%

Specialty Sports - Hunting/Fishing

4%

Specialty Sports - Golf4%

Other*3%

AN ANALYSIS OF SGB’s ANNUAL REPORT OF THE TOP 100 SPORTING GOODS RETAILERS IS A AN ANALYSIS OF SGB’s ANNUAL REPORT OF THE TOP 100 SPORTING GOODS RETAILERS IS A USEFUL STARTING POINT FOR ANALYZING SUUNTO’S PENETRATION OF MAJOR RETAILERS USEFUL STARTING POINT FOR ANALYZING SUUNTO’S PENETRATION OF MAJOR RETAILERS IN THE UNITED STATESIN THE UNITED STATES

Top 100 Sporting Goods Retailers – 2001 SalesTop 100 Sporting Goods Retailers – 2001 Sales Sporting Goods Business Retail Top 100Sporting Goods Business Retail Top 100

Revenue # Stores

General Sports 8,681 27

Footwear & Apparel 8,268 23

Specialty Sports - Outdoor 4,028 17

Manufacturer Owned 1,360 6

Specialty Sports - Hunting/Fishing 880 2

Specialty Sports - Golf 1,018 11

Other 782 14

25,016 100

* Other includes specialty sports retailers for biking, running, fitness equipment, marine, soccer and team sports apparel.

Source: Sporting Goods Business, June 2002

Store Sales

# of Stores

SuuntoSales

SuuntoRank

($MM) ($K)

L.L. Bean 1,140 3* 30 25 Cabelas 875 7 26 30 REI 740 61 1,223 1

Gander Mtn. 250 55

Orvis 230 26 19 45 EMS 180 86 147 7

Sportsman's Guide 169 1

Sportsman's WH 110 8 Campmor 85 1 52 15 Christy Sports 43 36 7 105

Kittery Trading 42 1 Popular 35 23 66 14

SUUNTO HAS DEEP PENETRATION OF THE PREMIER OUTDOOR SPECIALTY RETAILERS, SUUNTO HAS DEEP PENETRATION OF THE PREMIER OUTDOOR SPECIALTY RETAILERS, HOWEVER CERTAIN STORES MAY BE PERFORMING BELOW POTENTIAL RELATIVE TO THEIR HOWEVER CERTAIN STORES MAY BE PERFORMING BELOW POTENTIAL RELATIVE TO THEIR SIZE. STRONG SALES AT GALYAN’S SUGGEST THE GENERAL SPORTS CATEGORY SHOULD SIZE. STRONG SALES AT GALYAN’S SUGGEST THE GENERAL SPORTS CATEGORY SHOULD BE EXPLORED FURTHERBE EXPLORED FURTHER

Store Sales

# of Stores

SuuntoSales

SuuntoRank

($MM) ($K)

Sports Authority 1,400 198

Dicks 1,050 125

Champs Sports 800 574

Academy Sports 775 60

Big 5 663 252 Galyan's 483 26 379 3

Modell's 460 90

Sportmart 370 72

Gart 310 62

Oshman's 256 45

Eastbay 250 1

Scheel's 250 20

Top Ten General Sports RetailersTop Ten General Sports RetailersTop Ten Outdoor Specialty Sports RetailersTop Ten Outdoor Specialty Sports Retailers

* Excludes outlet stores

Source: Sporting Goods Business, June 2002; Reflects 2001 store sales, 2002 Suunto sales

Suunto USA 2002 Sales - % # of StoresSuunto USA 2002 Sales - % # of StoresSuunto USA 2002 Sales - % Dollar VolumeSuunto USA 2002 Sales - % Dollar Volume

CURRENTLY, 90% OF SUUNTO USA’s RETAIL RELATIONSHIPS ACCOUNT FOR ONLY 27% OF CURRENTLY, 90% OF SUUNTO USA’s RETAIL RELATIONSHIPS ACCOUNT FOR ONLY 27% OF WRISTOP DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS* ACCOUNT FOR 41% OF WRISTOP DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS* ACCOUNT FOR 41% OF WRISTOP DOLLAR VOLUMEWRISTOP DOLLAR VOLUME

>$1MM19%

$500-999K8%

$250-499K16%

$100-249K6%

$50-9910%

$10-49K19%

$1-10K20%

<$1K2%

c

$50-991%

$10-49K8%

$1-10K53%

<$1K37%

>$100K1%

* Top five relationships include REI, Army/Air Force, Galyans, Niche Retail, and Backcountry

GIVEN A SIGNIFICANT NUMBER OF SUUNTO’S ACCOUNTS ARE INDEPENDENT RETAILERS, GIVEN A SIGNIFICANT NUMBER OF SUUNTO’S ACCOUNTS ARE INDEPENDENT RETAILERS, SUUNTO MUST MONITOR THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED SUUNTO MUST MONITOR THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED RETAILERS ALIGN WITH SUUNTO’S BRAND POSITIONING RETAILERS ALIGN WITH SUUNTO’S BRAND POSITIONING

Monitoring programs such as that recently established with Franklin Resources are important to avoid any damage to Suunto’s image, strategy and ultimately sales

• A detail as simple as the product placement can damage the entire pricing, communication and product strategy

• It is difficult to communicate a premium brand at high end prices when the product is poorly displayed as shown in the picture taken at Marmot in Berkeley, CA

MARMOT MOUNTAIN WORKS Store. 3049 Adeline Street, Berkeley, CA

OAKLEY HAS TRADITIONALLY EMPLOYED A HIGHLY SELECTIVE DISTRIBUTION STRATEGY, A OAKLEY HAS TRADITIONALLY EMPLOYED A HIGHLY SELECTIVE DISTRIBUTION STRATEGY, A CASE SUUNTO MAY CONSIDER EMULATING AS IT BUILDS THE SUUNTO BRAND CASE SUUNTO MAY CONSIDER EMULATING AS IT BUILDS THE SUUNTO BRAND

Prior to its recent diversification, Oakley consistently pursued a selective distribution strategy for its sunglasses to:Prior to its recent diversification, Oakley consistently pursued a selective distribution strategy for its sunglasses to:Limit number of doors

• Four years after launching the sunglass line, Oakley stopped soliciting new retail accounts in the US (approx. 7,000 doors were carrying Oakley at that time)

• Accounts that failed to meet the Company's standard were eliminated• As of the company’s IPO in 1995, Oakley sold its products through 7,100 selected retailers with a combined total of 9,500 doors. In comparison, Bolle

sold its products through more than 14,000 doors• Most of the Company's accounts, other than sunglass retail chains, were single stores

Create an exclusivity to the Oakley brand• Sold primarily to optical, specialty sunglass and sporting goods stores, carefully selected to complement the high-quality image of the product• Never sold in discount stores, drug stores or department stores

Ensure a high standard of service• Selected stores represented specialty retailers with employees that typically were more product knowledgeable, more customer-service oriented, and

better able to educate the customer on the superior attributes of the Oakley productsBuild account loyalty

• Oakley required all of its accounts to agree not to sell or divert Oakley products to unauthorized dealers and such sales were monitored via a tracking code

• In return, Oakley products provided strong, reliable margins because of the limited competition and lack of product discounting • Retailers were more likely to give Oakley product prominent shelf space and make timely payments

Despite limited account expansion, Oakley grew by increasing sales per accountDespite limited account expansion, Oakley grew by increasing sales per accountU.S. sales per door increased 50% from 1992-1995, which equates to a compound annual growth rate of about 22%. The increased sales per door approximate a same-store sales figure Sales achieved through mix changes and product expansion with limited door expansion at various accounts

OAKLEY CONTINUES TO EMPHASIZE CAREFUL MANAGEMENT OF ITS DISTRIBUTION CHANNEL OAKLEY CONTINUES TO EMPHASIZE CAREFUL MANAGEMENT OF ITS DISTRIBUTION CHANNEL EVEN AS THE COMPANY’S PRODUCT OFFERINGS HAVE EXPANDEDEVEN AS THE COMPANY’S PRODUCT OFFERINGS HAVE EXPANDED

More recently, Oakley has diversified its product line and expanded its distribution network, however this was More recently, Oakley has diversified its product line and expanded its distribution network, however this was accompanied by the implementation of the Oakley Premium Dealer program (OPD)accompanied by the implementation of the Oakley Premium Dealer program (OPD) Today, Oakley’s products are distributed through approximately 9,200 accounts and 15,600 doors in the United States

• Comprised of optical stores, sunglass retailers and specialty sports stores, including bike, surf, ski and golf shops, and motorcycle, athletic footwear and sporting goods stores and department stores

• The Company continues not to sell its current season products through discount stores, drug stores or traditional mail-order companies

The OPD strategy was launched in 2000• Intended to enable consumers to identify retailers that offer the broadest selection and latest Oakley products• OPD partners will carry all categories of Oakley products that are consistent with the store’s offering and are required to carry a

minimum level of sunglass inventory as well as obligated to buy at least 50% of Oakley’s new styles• Oakley does not give these dealers preferential pricing, however it offers them exclusive products • The OPD partners are eligible for a cooperative marketing and advertising prioritization that includes a positioning on Oakley’s web

site as well as tagging in Oakley’s annual print and outdoor advertising campaigns• For example, Champs qualified for the OPD program in September 2001, and about 650 Champs stores in the U.S. carry Oakley

products and 30 stores will have a dominant Oakley selling area featuring sunglasses, footwear, apparel and watches. In addition, the highest volume Champs stores (100 stores) will double its shelf space devoted to Oakley sunglasses

• Oakley has enlisted 2,400 U.S. dealers thus far in its OPD program

Distribution also now includes Oakley owned stores and store-in-store format with select department storesDistribution also now includes Oakley owned stores and store-in-store format with select department storesOwned stores include 14 O Stores, 5 Oakley Vaults (outlet stores), oakley.com, and 64 mall based specialty sunglass stores

DISTRIBUTION TO SPECIALTY STORES IS KEY TO ESTABLISHING THE SPORT COMPUTER IN DISTRIBUTION TO SPECIALTY STORES IS KEY TO ESTABLISHING THE SPORT COMPUTER IN GOLF AND CURRENT SUUNTO SALES FORCE NETWORKS ARE WELL EQUIPED TO SERVE THIS GOLF AND CURRENT SUUNTO SALES FORCE NETWORKS ARE WELL EQUIPED TO SERVE THIS HIGHLY CONCENTRATED CHANNELHIGHLY CONCENTRATED CHANNEL

Golf Channel Retail Sales – 1997Golf Channel Retail Sales – 1997 Top Ten Specialty Golf Stores Sales ($MM)- 1997Top Ten Specialty Golf Stores Sales ($MM)- 1997

Nevada Bob's 450

Pro Golf Discount 195

Golfsmith 180

Edmin Watts 160

Golf Day 78

Golf USA 70

Las Vegas Discount Golf 65

Special Tee Golf 61

International Golf 55

Somerton Springs 43

* Specialty sport defined as sporting goods stores specializing in four or less product lines

Source: SBI Market Profile: Golf Equipment and Accessories 1998; Golf Pro Magazine

400

800

1,200

Specia

lty S

port*

Pro S

hops

Discou

nt S

tore

s

Mail

Ord

er

Gener

al Spo

rt

Depar

tmen

t Sto

res

Other

WHILE INDEPENDENT SPECIALTY STORES DID NOT SCORE HIGHLY IN OUR CHANNEL WHILE INDEPENDENT SPECIALTY STORES DID NOT SCORE HIGHLY IN OUR CHANNEL ATTACTIVENESS INDEX FOR SUUNTO OVERALL, THE GOLF SEGMENT HAS UNIQUE ATTACTIVENESS INDEX FOR SUUNTO OVERALL, THE GOLF SEGMENT HAS UNIQUE CHARACTERISTICS THAT SUGGEST PRODUCT PLACEMENT IN THIS CHANNEL MAY HAVE CHARACTERISTICS THAT SUGGEST PRODUCT PLACEMENT IN THIS CHANNEL MAY HAVE MERIT FOR INCREASING BRAND AWARENESS AND CAPTURING CORE GOLF ENTHUSIASTSMERIT FOR INCREASING BRAND AWARENESS AND CAPTURING CORE GOLF ENTHUSIASTS

Rationale• Pro shops are a good fit for Suunto and should be

emphasized even though current sales force networks may not have such reach

• Pro shops tend to specialize in high-end equipment and carry niche or impulse oriented items

• Demographic profile strongly aligned with Suunto’s pricing strategy

• Specialty stores may have dollar volume but not traffic – for example “consumables" such as balls are typically bought at discounters

Challenging Implementation• Fragmented structure of pro shops requires

intensive sales function• Initially, this can be reduced by targeting high end

resorts and schools only• Additionally, focus should be on GPS mapped

courses where technology has prior acceptance • Channel should be valued as a communication

tool as well as distribution

OUR CHANNEL ATTRACTIVENESS MATRIX ALSO SUGGESTS THAT TECHNOLOGY CATEGORY OUR CHANNEL ATTRACTIVENESS MATRIX ALSO SUGGESTS THAT TECHNOLOGY CATEGORY KILLERS REPRESENT A POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE KILLERS REPRESENT A POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE TECHNOLOGY PROFICIENCY OF SUUNTO’S TARGET CONSUMERS AS WELL AS SUUNTO’S TECHNOLOGY PROFICIENCY OF SUUNTO’S TARGET CONSUMERS AS WELL AS SUUNTO’S INITIATIVES WITH MICROSOFT AND POSITION AS A SPORT COMPUTER BRANDINITIATIVES WITH MICROSOFT AND POSITION AS A SPORT COMPUTER BRAND

Right place for target market

Trend Setting Info SeekersMost likely to have MSN as their ISP (26%)Likely to work in computer related retail (15%) and finance/ consulting/ accounting (12%)

Young Mobile AchieversAlways on the go; likes travelLikely to work in computer related businesses (13%)

Sports EnthusiastNot necessarily “active”Favorite sports: Football (college and professional) and baseball

In general, younger demographics, high average income, high education level

N-Series Consumer Behavior ProfileN-Series Consumer Behavior Profile

Microsoft Research 2002Microsoft Research 2002

Mass appeal and technology emphasis of the channel reflects target consumer of N-SeriesChannel offers benefit for differentiating Suunto as a computer vis-à-vis watchesThe channel also represents a good fit for Suunto’s traditional target consumer profile described earlier as technology proficient

Category Killer Functions and CharacteristicsCategory Killer Functions and Characteristics

“Consumer electronic stores like Best Buy and Circuit City have come to be known as the toy store of the American adult male”2003 Market Study: Information Technology & North American Category Killers- IHL Consulting Group

THE N-SERIES REPRESENTS THE ENTRY POINT INTO THE TECHNOLOGY CHANNEL, HOWEVER THE N-SERIES REPRESENTS THE ENTRY POINT INTO THE TECHNOLOGY CHANNEL, HOWEVER SUUNTO SHOULD TAKE THE OPPORTUNITY TO ESTABLISH THE SPORT INSTRUMENT SUUNTO SHOULD TAKE THE OPPORTUNITY TO ESTABLISH THE SPORT INSTRUMENT CATEGORY AND CAREFULLY MONITOR THE PRODUCT SUPPLY, BRAND IMAGE AND PRODUCT CATEGORY AND CAREFULLY MONITOR THE PRODUCT SUPPLY, BRAND IMAGE AND PRODUCT PLACEMENTPLACEMENT

• Given the low margin profits typical of Technology Category Killers’ operations, the current commissions Suunto pays to retailers seems to be suitable for the introduction of the product

STRATEGIC CONSIDERATIONS TO BE AWARE OF WHEN ENTERING CATEGORY KILLERS

Commissions

Product Supply

Brand Image

• The “No backorder” policies of most Techology Category Killers suggests that Suunto should review the current product supply if it decides to sell through this retailers

• Best Buy and Circuit City’s inventory policies and mass purchasing ensure that a given product is in stock and available

• Category Killers rely heavily on print and TV advertisement. This could be a great opportunity for Suunto to create brand awareness; nevertheless Suunto should target the premier stores that reflect the Suunto brand and monitor that Suunto’s traditional product line is adequately portrayed vis-à-vis the non-sport functions of the N-Series

KEY TAKEAWAYS – DISTRIBUTION STRATEGYKEY TAKEAWAYS – DISTRIBUTION STRATEGY

Suunto has strong penetration of specialty sports retailers, particularly for its x-sports and snow oriented products• Selective criteria should be implemented to ensure that retailers in this channel, many of which are independent

operations, reflect Suunto’s premium brand image• In return for the robust margins offered by Suunto, products should be expected to receive high quality

merchandising space in selected storesThere appears to be untapped potential among the general sports category, many of which carry a broad offering of outdoor sporting equipment

• Store quality in this channel can vary and any further exploration of this channel should emphasize the premium retailers only

In golf, a two-tiered distribution approach should be considered:• Only premium specialty retailers should be targeted and can be easily reached through current Wilson or Suunto

in-house sales forces• Pro shops of premier courses offer an opportunity to build product awareness among potential users and align with

the demographics appropriate for the G9The introduction of the N-Series creates the opportunity for Suunto to bring the whole product line to the technology category killers

• Positioning of Suunto as the “sport computer” is strengthened by entering this channel• Opportunity to extend reach to mass audience

MARKETING INFRASTRUCTURE MARKETING INFRASTRUCTURE

TO EVOLVE INTO A MARKET-CENTERED COMPANY, SUUNTO SHOULD ESTABLISH TO EVOLVE INTO A MARKET-CENTERED COMPANY, SUUNTO SHOULD ESTABLISH INTEGRATED MARKETING OPERATIONS FOR PRODUCT MANAGEMENT, NEW PRODUCT INTEGRATED MARKETING OPERATIONS FOR PRODUCT MANAGEMENT, NEW PRODUCT PLANNING AND MARKETING SUPPORTPLANNING AND MARKETING SUPPORT

Ad/PR

Mid/long term ad/PR planning & implementation

Ad/PR info collection and sharing w/ PM

Ad/PR effectiveness analysis

Ad/PR agency management

Marketing Research

Mid/long term market research planning & implementation

Market data collection & maintenance

Market research initiated by PM

Market research agency mgmt

Marketing Support

Marketing Support

Product portfolio/profitability Management

• Product planning & monitoring

• Product extension/ termination decision

• Brand value maximizationMarket research planning

• Required data definitionCommunication strategy planningCooperation w/ other functions

• Sales, production, procurement, research, Finance

New product development

• Cross-functional team

• Decision process (gate) preparation

Continuous ideation for new market opportunities

• Market analysis, internal interview, consumer research, etc

Brand/Product Management

Brand/Product Management

New Product Planning

New Product Planning

Suunto needs to develop its own organizational structure to incorporate the key operational functions

Suunto needs to develop its own organizational structure to incorporate the key operational functions

Key Operational Functions of a Global Consumer Marketing Company

SUUNTO NEEDS TO STRENGTHEN ITS MARKETING INFRASTRUCTURE COMPOSED OF SUUNTO NEEDS TO STRENGTHEN ITS MARKETING INFRASTRUCTURE COMPOSED OF INFORMATION, PEOPLE AND PROCESSINFORMATION, PEOPLE AND PROCESS

Strategic Marketing PlanningStrategic Marketing Planning

BrandingBranding PricingPricing DistributionDistributionCommuni-cationCommuni-cation

Brand/Product Management

Brand/Product Management

New Product DevelopmentNew Product Development Market ResearchMarket Research

InformationInformation PeoplePeople ProcessProcess

Marketing Strategies

MarketingMix

Marketing Operations

Marketing Infrastructure

KEY INITIATIVES TO IMPROVE SUUNTO’S MARKETING INFRASTRUCTUREKEY INITIATIVES TO IMPROVE SUUNTO’S MARKETING INFRASTRUCTURE

Infrastructure Description

InformationInformation

ProcessProcess

• Market analysis based on broad and accurate information about local markets and customers

• What information is examined?

• Development of capable talents who manage and analyze information

• Who is dealing with information?

• Efficient/ effective flow of information and interaction among people

• How is the process structured?

Initial Assessment

• Solid top-down market overview (size/penetration by sport sector)

• Detail info on local markets and consumers (bottom-up) required

• Marketer development needs to be improved

• Not enough local information / perspective for PM

• US branch positioned to focus trade marketing (distribution management)

PeoplePeople

Key Initiatives Detail

• Consumer DB• Information

sharing culture/ organization

• Assistant product managers (APM)

• Marketing process improvement for HQ

• End-user oriented implementation in US branch

Marketing Information

Management

Marketing Information

Management

Global Marketing Process

Enhancement

Global Marketing Process

Enhancement

Marketing Specialist

Development

Marketing Specialist

Development

Source: GlobeSmart, Team Analysis

IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT: CONSUMER INFORMATION AND IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT: CONSUMER INFORMATION AND INFRASTRUCTURE TO SHARE IT SHOULD BE ESTABLISHEDINFRASTRUCTURE TO SHARE IT SHOULD BE ESTABLISHED

• Profile of existing customers- Contact/Product/Complaints- Demographic/Preference

• Focused database for loyal customers- Special management of active loyal

customer (e.g., top 5% ) information- Basis of membership activities and

consumer research (e.g., focus group)

• Planned by PM/Customer Service• Maintained by Customer Service

Consumer database

Financial database(product)

Non-normalized market data

Development of Consumer Database

Spec

R&R

• Sales/profitability by product/retailer

• Managed by finance/control function

Spec

R&R

• 3d party market/ consumer research

• Managed by PM

Spec

R&R

Information SharingCulture/Organization

Information Creation & Maintenance

• Exchange and co-usage of information

• Company culture that favors knowledge sharing

- IT is only a piece of KM

• Multi-dimensional efforts required

- Top management initiative

- Incentive/reward- Communication/

teamwork

Comprehensive and

ExhaustiveCustomer

Understanding

Information Usage & SharingTechnology Culture

ENHANCEMENT OF MARKETING SPECIALIST DEVELOPMENT: ON-THE-JOB TRAINING TO ENHANCEMENT OF MARKETING SPECIALIST DEVELOPMENT: ON-THE-JOB TRAINING TO DEVELOP MARKETING SPECIALISTS REQUIREDDEVELOP MARKETING SPECIALISTS REQUIRED

Marketing Director

Marketing Director

PM for X-sport/SnowPM for X-

sport/SnowPM for X-

Marine/GolfPM for X-

Marine/GolfPM for DivingPM for Diving

PM for Compass

PM for Compass

APM APM ............

To develop a capable marketing specialists through mentorship/on-the-job-training

To develop a capable marketing specialists through mentorship/on-the-job-training

To strengthen market research by letting APM focus on basic market research and analysis

To strengthen market research by letting APM focus on basic market research and analysis

To help product managers spend more of their time on long-run significant tasks

(e.g., NPD)

To help product managers spend more of their time on long-run significant tasks

(e.g., NPD)

Introduction of Assistant Product Managers Primary Objectives

• Support PM’s works• Focus on basic market research• Rotate after 1~2 years

Marketing Headquarter

(Finland)

Marketing Headquarter

(Finland)

ENHANCEMENT OF GLOBAL MARKETING OPERATIONS PROCESS: HQ NEEDS TO HAVE MORE ENHANCEMENT OF GLOBAL MARKETING OPERATIONS PROCESS: HQ NEEDS TO HAVE MORE LOCAL MARKET INFORMATION, WHILE US BRANCH COLLECTS INFORMATION AND MAINTAINS LOCAL MARKET INFORMATION, WHILE US BRANCH COLLECTS INFORMATION AND MAINTAINS RELATIONSHIP WITH END-USERSRELATIONSHIP WITH END-USERS

• Development of global products based on localized information

- Research on local consumers (Europe, US, and Asia)

• Central management of global marketing activities

- Closed loop by monitoring implementation results

• Development of global products based on localized information

- Research on local consumers (Europe, US, and Asia)

• Central management of global marketing activities

- Closed loop by monitoring implementation results

• Strategic directions• Implementation guideline• Strategic directions• Implementation guideline

• Detail implementation planning• Market monitoring• Consumer/distributor info

• Detail implementation planning• Market monitoring• Consumer/distributor info

3-13-1 Marketing Process Improvement

• First-hand information source on US consumers/distributors

• Planning and implementation of detail marketing activities

- E.g., user group support

• First-hand information source on US consumers/distributors

• Planning and implementation of detail marketing activities

- E.g., user group support

3-23-2 End-user Oriented Implementation

LocalBranch

(US)

LocalBranch

(US)

KEY TAKEAWAYS - MARKETING INFRASTRUCTURE IMPROVEMENTKEY TAKEAWAYS - MARKETING INFRASTRUCTURE IMPROVEMENT

Marketing infrastructure can significantly impact on long-term performance

Improvement of marketing infrastructure is a result of combined efforts in information

technology, people development, process reorganization

- Reward system, incentives, and performance evaluation (e.g., KPIs) should be

aligned in accordance

Top management should constantly care about improving marketing infrastructure

MARKETING INFRASTRUCTURE ACTION PLANMARKETING INFRASTRUCTURE ACTION PLAN

Items Description

Marketing Information

Management

Marketing Information

Management

MarketingProcess

Realignment

MarketingProcess

Realignment

• Consolidation of consumer database• Clear roles & responsibilities in marketing data

management

• Master plan to develop marketing experts - Assessment of various alternatives

including introduction of Assistant Product Manager

• Redesign of product development/ management process in headquarters

• Assignment of information collection/ implementation planning function in local branch (US)

Goals

Marketing HR ImprovementMarketing HR Improvement

Roles&Responsibilty

• To increase market-driven consumer understanding (bottom-up)

• To build basis to conduct marketing campaigns targeting end-users

• To establish systematical infrastructure to develop capable marketers

• To strengthen local market understanding in product management/ development in headquarters

• To reposition local branch (US) as a local information provider and implementation planner

• PM – planning/analysis• Customer service –

IT/maintenance/ analysis

• Task force under CEO direction - planning

• Central board under CEO direction

• Marketing Director- planning

• Local branch – participation in planning

Suunto needs to consider creating a central discussion board to supervise and make decisions about the marketing infrastructure initiatives

Suunto needs to consider creating a central discussion board to supervise and make decisions about the marketing infrastructure initiatives

MARKETING INFRASTRUCTURE ACTION PLAN : MARKETING INFORMATION MANAGEMENTMARKETING INFRASTRUCTURE ACTION PLAN : MARKETING INFORMATION MANAGEMENT

Objective: To increase market-driven consumer understanding (bottom-up) and to build basis for end-user marketing campaigns

Rationale: • Currently, Suunto is focusing on solid top-down market overview (size/ penetration by sport sector)• Detailed studies on local markets and consumers required to complement the top-down perspectives• Special management of core loyal consumers (“user advocates”) required to improve referral marketing effects

Implementation Direction(1) Plan/ Design of Consumer Database• A PM will be responsible to consolidate other PM’s opinions and design information specification required for consumer database• Customer Service Manager will participate in planning and lead discussion on practical implementation and technical requirements• The dedicated PM will also develop plans to collect and maintain the consumer information, having close discussion with Commercial Operations and local branches• Marketing Director/ CEO will supervise the progress(2) Implementation/Analysis• Customer Service Manager will be in charge of constructing IT systems and operating consumer database• Customer Service Team will provide periodic analysis report on consumer data, after agreement with PM’s on the detailed report requirement• PM’s will analyze the consumer database for product management/ development

MARKETING INFRASTRUCTURE ACTION PLAN: MARKETING HR IMPROVEMENTMARKETING INFRASTRUCTURE ACTION PLAN: MARKETING HR IMPROVEMENT

Objective: To establish systematical infrastructure to develop capable marketers

Rationale: • Continuous development of capable marketers is a basis for transforming into a marketing-oriented company• Currently only a few of marketing-dedicated people work in headquarters

Implementation Direction(1) Establishment of Task Force• Under CEO direction, Marketing Director and HR specialist develop a report on marketing HR issues

- Assessment of current marketing-related HR practices- Benchmarking of marketing HR in global marketing companies- Development of marketing HR improvement plan

(2) Key Items To Be Reviewed• Organizational change

- Potentially introduction of Assistant Product Managers• Revision of recruiting/ selection process• Redefinition of marketing career track• Improvement of marketer education/ training• Revision of reward/ incentive system

MARKETING INFRASTRUCTURE ACTION PLAN: MARKETING PROCESS REALIGNMENTMARKETING INFRASTRUCTURE ACTION PLAN: MARKETING PROCESS REALIGNMENT

Objective: To strengthen local market understanding in product management/ development in headquartersTo reposition local branch (US) as a local information provider and implementation planner

Rationale: • Currently, information/perspectives of local markets not provided enough for PM’s at headquarters• Local branch (US) focusing on “trade marketing,” dealing with retailers, not end-users

Implementation Direction(1) Establishment of Central Board/ Task Force for Process Realignment• CEO will supervise the progress and make decisions• Marketing Director/ PM’s will develop a plan to redesign marketing process in headquarters, incorporating roles and responsibilities of local branches• Commercial Operations/ local branches will participate in the Board and discuss(2) Key Items To Be Reviewed• (New) Product development/management process

- How to incorporate local consumer needs and market situation• Process to communicate local market/ consumer situation to headquarters• Roles and responsibilities between headquarters (PM’s) and local branches

- Roles of local branch as a local information source and implementation planning

PROGRAMS & TACTICSPROGRAMS & TACTICS

SUMMARY OF POTENTIAL NEW WRISTOP MARKETING PROGRAMS & TACTICSSUMMARY OF POTENTIAL NEW WRISTOP MARKETING PROGRAMS & TACTICS

Program Description

Virtual CaddyVirtual Caddy• G9 training Aid Program; target instructors

from very well known golf academies to use G9 as a training aid tool

Goals Cost and Benefits

• Create advocates that will spread the word by exposing the benefits of the product

• approx $50K to reach approx. +75k players/year

Smart SailingSmart Sailing• M9 training aid program; target sailing

instructors of US Sailing Certificate Schools. Idea is to use M9 as a training aid tool

• Create advocates that will spread the word by exposing the benefits of the product

• approx $47K to reach approx. 20k sailors/year

S6 “Try Me” S6 “Try Me”

• “Try out sessions” in the best ski resorts of the US. Place a booth at the central area of the mountain and let skiers try the wristop computer for a few rides

• Attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides

• $35K to show the benefits to 11.5k potential users

BillboardsBillboards

Web AdsWeb Ads

• Billboard ads in targeted areas• Focus on snow and x-sport

• Ski resorts/national park

• To increase brand awareness • $ 110K with an expected reach of 3.4 million potential consumers

• Banner ads in targeted web sites• Generate traffic to Suunto’s web sites

• To increase brand awareness • $17K per month to reach 200k potential consumers

New marketing programs are more cost-effective than magazine ads• Magazine ads $16K per month to reach ~90K target consumers (1)

(1) 1 page ad for S6 on Skiing Magazine ($15,675 ); target consumers(88K) = target ratio(22%) x circulation (400K)Source: company data, team analysis

G9 TRAINING AID PROGRAM: “VIRTUAL CADDY” OVERVIEWG9 TRAINING AID PROGRAM: “VIRTUAL CADDY” OVERVIEW

Target: Golf instructors of well known Golf AcademiesObjective: Create advocates that will spread the word by demonstrating the benefits of the product and help build the brand

Rationale: • To capture Golf Academies as marketing media or tool for Suunto, a benefit for the Academy must exist. The top 25 Golf Academies in the U.S. emphasize and sell as a value added service to their customers the fact that they have computerized video analysis, techniques and technology to help the client to IMPROVE THEIR GAME. The benefit is clear for the academies, because Suunto represents another “trainer aid device” to offer to their clients, thus, there could be a competitive advantage for Academies that integrate the G9 as a improvement tool to help their customers….”The latest in training technology”• Technology proficiency of the teachers• 10 out of top 25 are in California, 2 in Carlsbad

Implementation:• Staged roll – out: start in one State (California), try the concept, build strong relationship with your users, create success stories and move to the next state• Selection criteria for the Golf Academies should include: prestige, location, technology usage for teaching purposes (see next slide for a proposed roll-out plan)• Try to develop a certificate for Academies such as the PADI case... For example, “Suunto compliance” or “Suunto inside” (as Intel program) to start creating the image of enabler compan… enabler in the sense of allowing players to improve their game

Expected Cost/Benefit: approximately $50K to reach +75k players/year… if just 10% of the players buy the wristop computer, Suunto could achieved the quota for two years

G9 TRAINING AID PROGRAM: TARGET GOLF ACADEMIESG9 TRAINING AID PROGRAM: TARGET GOLF ACADEMIES

Ranking Golf Academy Presence in California? Sytems to improve game?

1 Academy of Golf Dynamics X2 Aviara Golf Academy X X3 Balance Point Golf Schools X X4 Butch Harmon School of Golf X5 Classic Swing Golf School X6 Craft-Zavichas Golf School X X7 Dana Rader Golf School X8 Dave Pelz Scoring Game Schools X X9 David Leadbetter Golf Academy X

10 Dr. David Wright's Mind Under Par Golf School X X11 ESPN 3-Day Resort School X12 Extraordinary Golf X X13 Golf Advantage School X14 Grand Cypress Academy of Golf X15 Jim McLean Golf School X X16 John Jacobs' Golf Schools X X17 Kapalua Golf Academy X18 Martin Green Golf Academy X19 McGetrick Golf Academy X20 Natural Golf Schools X X21 Phil Ritson-Mel Sole Golf School X22 Pine Needles Learning Center X23 Resort Golf Schools X X24 Todd Sones Impact Golf School25 Tradition Golf School

G9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS G9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS

# Teachers/school 5hrs/week 10week/yr 40Hour training the professors 5

Wristop marginal cost per unit 150

Training Costs per hour 40POP+Brochures+ placement per School400

Assumptions

Location Wristop TrainingPOP+Brochures+

placementTotal Costs

California 7,500 2,000 4,000 13,500 Florida 7,500 2,000 4,000 13,500 Phoenix 4,500 1,200 2,400 8,100 Las Vegas 5,250 1,400 2,800 9,450 Texas 3,750 1,000 2,000 6,750

51,300

• Five instructors per Academy• Teaching 5 hours/ week• One player per instructor• $150 marginal cost per Wristop•One hour training for each instructor

Location # Academies Potential Players exposed

California 10 20,000 Florida 10 20,000 Phoenix 6 12,000 Las Vegas 7 14,000 Texas 5 10,000

76,000

CommunityDeeper

understandingInstant

satisfactionProducts

Aiming to affect the instant satisfaction phase

G9 TRAINING AID PROGRAM: A GOOD FIT WITH CURRENT PRODUCT STRATEGYG9 TRAINING AID PROGRAM: A GOOD FIT WITH CURRENT PRODUCT STRATEGY

G9 TRAINING AID PROGRAM: STAGED ROLL OUTG9 TRAINING AID PROGRAM: STAGED ROLL OUT

3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004

Phase 1 California

FloridaPhoenixLas Vegas Texas

Phase 3 Rest US

Phase 2

• Pilot Test in Carlsbad – Learn and build success stories• Roll out if successful in California

• Roll out to the most prestigious schools in the US• Create Suunto Certificate program for schools

M9 TRAINING AID PROGRAM: “SMART SAILING” OVERVIEWM9 TRAINING AID PROGRAM: “SMART SAILING” OVERVIEW

Target: Sailing instructors of well known Sailing Academies in the US., specifically US Sailing Certificate Schools

Objective: create advocates that will spread the word by demonstrating the benefits of the product

Rationale: • The rationale suggested for the introduction of the G9 Training Program apply in this case. Again, in order to capture Sailing schools as marketing media or tool for Suunto, a benefit for the Academy must exist. The top 50 Sailing Schools of the U.S. is provided in the next slide, the idea would be to sell them the M9 at a discount to help them improve their teaching techniques• The benefit, again, is clear for the academies - M9 is a “trainer aid device” that will improve their customers’ skills and thus the name of the School• 15 out of top 50 are in California, facilitating the launch and control of this initiative

Implementation:• Staged roll – out: start in California, try the concept, built strong relationship with your users, create success stories and move to the next state if the results are favorable• Selection criteria for the Sailing schools should include: prestige, location, US Sailing Certification • Again the idea of a Suunto Certification for instructors is a good idea to build the “desirable” image around the product

Expected Cost/Benefit: approximately $47K to reach roughly 20k sailors/year

M9 TRAINING AID PROGRAM: TARGET SAILING ACADEMIES M9 TRAINING AID PROGRAM: TARGET SAILING ACADEMIES

School Name State

Piers Park Sailing Center MA

Boston Sailing Center MA

J World Annapolis MD

Annapolis Sailing School MD

Onboard Sailing School MN

Offshore Sailing School NY

Offshore Sailing School NY

New York Sailing Center and Yacht Club NY

Oyster Bay Sailing School NY

Rochester Yacht Club NY

Harbor North Sailing School OH

Thunderbird Sailing Club OK

J World Sailing Schools RI

Ocean Sailing Academy SC

Concord Yacht Club TN

Offshore Sailing School BVI

Offshore Sailing School BVI

Magellan Sailing Center, Inc TX

At The Helm Sailing School TX

Texas Sailing Academy TX

Vashaw Ent, Inc/Washington Sailing School VA

Premier Sailing School VA

Jones Maritime Co VI

Starpath School of Navigation WA

Wind Works Sailing Center, Inc NW

Milwaukee Community Sailing Center WI

School Name State

Club Nautique CA

US Sailing Center - Long Beach California CA

Del Mar Marina and Sailing Center CA

J World San Diego CA

San Diego Sailing Academy CA

Mission Bay Aquatic Center CA

Orange Coast College CA

Scenic Bay Sailing School & Charters CA

Club Nautique CA

J World San Francisco CA

Club Nautique CA

California Maritime Academy Sailing Program CA

OCSC-San Francisco Bay Sailing School CA

Cass' Sailing School & Charters CA

Club Nautique CA

Southern Sailing Academy, Inc FL

J World FL

Florida Keys Sailing, Inc FL

Offshore Sailing School FL

Shake-A-Leg Miami FL

Castle Harbor Sailing School FL

Annapolis Sailing School FL

Offshore Sailing School FL

Offshore Sailing School FL

Actionquest/Sea-Mester FL

Lake Forest Sailing IL

Chicago Sailing Club IL

US Sailing Association

M9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSISM9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS

# Teachers/school 5session/week 3week/yr 40Hour training the professors 5Wristop marginal cost per unit 150Training Costs per hour 40POP+Brochures+ placement per School 400

Assumptions

Location Wristop TrainingPOP+Brochures+

placementTotal Costs

California 11250 3750 6000 21,000 Florida 9000 3000 4800 16,800 NY 3000 1250 2000 6,250 Texas 900 750 1200 2,850

46,900

Assumptions:• Five Instructors per school•Five M9 per school• Teaching 3 sessions/ week•$150 marginal cost of a Wristop•One Hour training for each instructor

Location # Academies Potential sailors exposed

California 15 9,000 Florida 12 7,200 NY 5 2,400 Texas 3 720

19,320

3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004

Phase 1 California

FLNYTX

Phase 3 Rest US

Phase 2

M9 TRAINING AID PROGRAM: STAGED ROLL OUTM9 TRAINING AID PROGRAM: STAGED ROLL OUT

• Pilot Test in California – Learn and build success stories• Roll out to to FL if successful experience

• Roll out to the ,most prestigious schools in FL, take advantage of the geographic concentration of the schools

S6 DEMO PROGRAM: ”TRY ME” OVERVIEWS6 DEMO PROGRAM: ”TRY ME” OVERVIEW

Target: Skiers at intermediate and advanced levels of expertise of well known resorts

Objective: attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides

Rationale: • In snow sports, it is easier to provide the instant satisfaction of Suunto’s products by showing on a few rides how the wristop computer can help you to improve your performance by illustrating the speed and altitude of the skier• The best ski resorts are geographically concentrated, facilitating the launching process and logistics• Demo concept strongly accepted in snow sports• The skiers are “gadget” oriented consumers - they love to ski with latest technology in skis, jackets, Camelbaks and some of them even MP3 players• To complement this initiative, some merchandising like t-shirts or caps should be included; Suunto must look for vehicles to overcome the stage where the brand is just on the wrist

Implementation:• Plan “try me” sessions per state, starting with the most visited ski resorts in the U.S.• Selection criteria for the ski resorts should include: volume of visitors, location, percentage of intermediate and advance trails (this way there is more probability of hitting our target market)• Given the limited resources in terms of human labor in the U.S., probably the right way to start is by hiring an outsourcing company. If the program works, future in-house could be considered

Expected Cost/Benefit : US$35K to show the benefits of the instant satisfaction of Suunto’s wristop computers to approximately 11.5k potential users. This figure is just skiers trying out the product; if we consider that this skier can talk to at least one more person (conservative), the experience would spread out to more than 23k skiers (in depth)

S6 DEMO PROGRAM: TARGET RESORTS SORTED BY SKI EXPERTISE LEVEL AND STATES6 DEMO PROGRAM: TARGET RESORTS SORTED BY SKI EXPERTISE LEVEL AND STATE

Ranking + Resort Beginner Intermediate Advance State45. Lodge & Spa at Breckenridge 15% 28% 57% Col41. Sheraton Crested Butte Resort 14% 32% 54% Col3. Lodge & Spa at Cordillera 18% 29% 53% Col4. Vail Cascade Resort & Spa 18% 29% 53% Col5. Lodge at Vail 18% 29% 53% Col6. Sonnenalp Resort of Vail 18% 29% 53% Col23. Vail Marriott Mountain Resort 18% 29% 53% Col9. St. Regis 0% 48% 52% Col15. Little Nell 0% 48% 52% Col18. Hotel Jerome 0% 48% 52% Col10. Wyndham Peaks Resort 24% 38% 38% Col20. Ice House Lodge 24% 38% 38% Col28. Silvertree Hotel 7% 55% 38% Col47. Stonebridge Inn 7% 55% 38% Col7. Park Hyatt Beaver Creek Resort 34% 29% 37% Col33. Steamboat Grand Resort Hotel 13% 56% 31% Col43. Torian Plum 13% 56% 31% Col46. Sheraton Steamboat Resort 13% 56% 31% Col21. Charter at Beaver Creek 34% 39% 27% Col34. Beaver Creek Lodge 34% 39% 27% Col17. Delta Whistler Resort 20% 55% 25% Col16. Snowmass Club 7% 55% 38% Vancouver1. Westin Resort & Spa 20% 55% 25% Vancouver2. Fairmont Chateau Whistler 20% 55% 25% Vancouver8. Pan Pacific Lodge 20% 55% 25% Vancouver13. Summit Lodge 20% 55% 25% Vancouver

Ranking + Resort Beginner Intermediate Advance State36. Fairmont Chateau Lake Louise 25% 45% 30% Alberta40. Post Hotel 25% 45% 30% Alberta38. Embassy Suites Hotel 20% 45% 35% Cal50. Harvey's Resort & Casino 20% 45% 35% Cal26. Resort at Squaw Creek 25% 45% 30% Cal49. Plumpjack Squaw Valley Inn 25% 45% 30% Cal12. Knob Hill Inn 36% 42% 22% Idaho19. Sun Valley Lodge 36% 42% 22% Idaho35. Summit at Big Sky 17% 25% 58% Montreal29. Taos Inn 24% 25% 51% NM37. Mirror Lake Inn 20% 36% 44% NY14. Sunriver Resort 15% 25% 60% Oregon32. Fairmont Tremblant 17% 33% 50% Quebec39. Fairmont Le Chateau Frontenac 25% 41% 34% Quebec48. Cliff Lodge 25% 30% 45% Utah31. The Homestead 18% 44% 38% Utah42. Lodge at the Mountain Village 18% 44% 38% Utah11. Stein Eriksen Lodge 15% 50% 35% Utah22. Lodges at Deer Valley 15% 50% 35% Utah25. Alta Lodge 25% 40% 35% Utah30. Goldener Hirsch Inn 15% 50% 35% Utah24. Spring Creek Ranch 10% 40% 50% Wyoming27. Amangani Resort 10% 40% 50% Wyoming44. Alpenhof Lodge 10% 40% 50% Wyoming

S6 DEMO PROGRAM: RELEVANT SNOW SPORTS DEMOGRAPHICSS6 DEMO PROGRAM: RELEVANT SNOW SPORTS DEMOGRAPHICS

Source: National Sporting Goods Association, 2001 Sports Participation Study

Ages per Discipline

8%18%

10% 9%

19%

31%

8% 8%

15%

26%

15%6%

21%

15%

15%24%

20%

5%

24% 20%

12%3%

17%17%

4% 2%7% 13%

Alpine Snowboard Cross Country Snowshoe*

7-11 12-23 18-24 25-34 35-44 45-54 55-64 65-74 75+

Skiers Gender per Discipline

60.20%72.40%

50.00%59.20%

39.80%27.60%

50.00%40.80%

Alpine Snowboard Cross Country Snowshoe*

Male Female

Total Number of U.S. Snow Sports Visits (In Millions)

12.1

18.1

75

12.2

Northeast Southeast Midwest Rockies Pacific

Consumer Spending

$663 Millions

$787 Millions

$663 Millions

Apparel Equipment Accessories

S6 DEMO PROGRAM: INITIAL COST/ BENEFIT ANALYSISS6 DEMO PROGRAM: INITIAL COST/ BENEFIT ANALYSIS

Time with Skier MinSet up (sign up + quick training) 10Ski ride time (hrs) 20

Total trial time 30

Wristops per mountain (# units) 10 Hrs/day 8 Ski rides/day 16 days/week 2 Potential skiers experiences/ weekend 320 # Simultaneous programs/weekend 3 Total weekends/year 12

Total skiers experiences 11,520

Assumptions + Calculations

Costs Units Cycle TotalMarginal Costs per wristop 100 30 1 3,000 Booth Rental 500 3 12 18,000 POP 200 3 12 7,200 Other 100 3 24 7,200

Total Cost per season 35,400

BILLBOARD ADVERTISEMENT: OVERVIEWBILLBOARD ADVERTISEMENT: OVERVIEW

Target: Top ski resorts in North America and top national parks in US

Objective: To increase brand awareness among target consumers

Rationale: • Outdoor ads located on highways to ski resorts and national parks can significantly increase brand awareness of snow sports and X-sports products• Billboards are more effective to reach target consumers than magazine ads

-Only small fraction of skiers or X-sports players regularly read related magazines

Implementation:• Target top ski resorts and national parks

- E.g., Whistler/Blackcomb, Alta/Snowbird, Jackson Hole, Squaw Valley, and Mammoth (ski resorts)- E.g., Great Smoky Mountains, Grand Canyon, Olympic, Yosemite, and Rocky Mountains (national parks)

• Focus on brand/image, rather than product information- Detailed information can be provided in the company web site (Suunto.com/Suuntosports.com)

• Need to be combined with other communication initiatives to maximize synergies- E.g., billboards in ski resorts + ski instructors deal + trial/demo in ski slopes

• Consistent follow-ups critical

Expected Cost/Benefit:• Assumption: 3 billboards in Whistler/Blackcomb(ski resort)/Great Smoky(park)/Olympic (park+snow), monthly charge $3K, 1 billboard per site• Expected reach to target consumers: 3.4 million per year (22% (2) of total 15 million recreational visitors)• Expected monthly expense ~$9K, yearly expense ~$110K

(1) Based on company data (Suunto US); (2) portion of core consumers for X-sport/snow product in US (company data)Note: Further cost/benefit study requiredSource: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis

BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKSBILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS

(1) Estimated annual visitors 2.2MSource: Skiing Magazine (2002)

Top 25 Ski Resorts in North AmericaTop 25 Ski Resorts in North AmericaRank Resort State

1 Whistler Blackcomb BC2 Alta/Snowbird UT3 Jackson Hole WY4 Squaw Valley CA5 Mammoth CA6 Vail CO7 Aspen/Aspen Highlands CO8 Big Sky MT9 Aleyeska AK

10 Fernie, BC11 Steamboat CO12 Heavenly CA13 Telluride CO14 Kirkwood CA15 Snowbasin UT16 Big Mountain MT17 Park City UT18 The Canyons UT19 Beaver Creek CO20 Sunshine Village AB21 Lake Louise AB22 Taos NM23 Crested Butte CO24 Kicking Horse BC25 Crystal WA

(1)

Rank National Parks Recreational Visitors (2002)

Location

1 GREAT SMOKY MOUNTAINS NP 9,316,420 Tennessee and North Carolina2 GRAND CANYON NP 4,001,974 Grand Canyon, AZ3 OLYMPIC NP 3,691,310 Port Angeles, WA4 YOSEMITE NP 3,361,867 Yosemite National Park, CA 953895 ROCKY MOUNTAIN NP 2,988,475 Estes Park and Grand Lake, CO6 YELLOWSTONE NP 2,973,677 ID,MT,WY7 GRAND TETON NP 2,612,629 Moose, WY8 ZION NP 2,592,545 Springdale, UT9 ACADIA NP 2,558,572 Bar Harbor, ME

10 GLACIER NP 1,905,689 Northwest Montana11 MAMMOTH CAVE NP 1,891,307 Mammoth Cave, KY12 HOT SPRINGS NP 1,440,227 Hot Springs, AR13 SHENANDOAH NP 1,389,244 Blue Ridge Mountains near Luray, VA14 MOUNT RAINIER NP 1,310,390 Ashford, WA15 HALEAKALA NP 1,260,601 Kula, Maui, HI16 JOSHUA TREE NP 1,178,376 Twentynine Palms, CA17 HAWAII VOLCANOES NP 1,110,998 Hilo, HI18 EVERGLADES NP 968,909 Miami, Naples, and Homestead, FL19 SEQUOIA NP 920,292 Sierra Nevada near Three Rivers, CA20 BADLANDS NP 908,898 southwestern, SD21 DEATH VALLEY NP 897,596 Death Valley, CA22 BRYCE CANYON NP 886,436 Bryce Canyon, UT23 WIND CAVE NP 810,298 Hot Springs, SD24 ARCHES NP 769,672 Moab, UT25 PETRIFIED FOREST NP 571,586 Petrified Forest National Park, AZ

Source: National Park Service

Top 25 National Parks in USTop 25 National Parks in US

BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS CONT.BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS CONT.

BILLBOARD ADVERTISEMENT: INITIAL COST/ BENEFIT ANALYSISBILLBOARD ADVERTISEMENT: INITIAL COST/ BENEFIT ANALYSIS

SiteMonthly

Billboard Cost #

billboards Monthly Cost Yearly cost

RecreationalVisitors (Year)

EstimatedTarget Reach

Whister/Blackcomb 3,000 1 3,000 36,000 2,200,000 493,274 Great Smokie Mts. N.P. 3,000 1 3,000 36,000 9,316,420 2,088,883 Olympic N.P. 3,000 1 3,000 36,000 3,577,007 802,020 Total 9,000 108,000 15,093,427 3,384,176

Assumptions• 3 target areas: Whistler/Blackcomb (X-sport/Snow), Great Smoky Mountains N.P. (X-sport), and Olympic N.P. (X-sport/Snow)• 1 billboards ads based on 12 month contract• Monthly cost of billboards ads $3,000• Expected target reach = total number of recreational visitors x target ratio (22%)

Source: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis

WEB ADS: OVERVIEWWEB ADS: OVERVIEW

Target: Top sport-related media/portal and community sites

Objective: To increase brand awareness among target consumers

Rationale: • Suunto’s target consumers are technology and internet-savvy• Web ads can generate traffics to Suunto sites, Suunto.com/SuuntoSports.com

Implementation:• Prioritize target web sites: focus on visitor fit (Suunto’s target consumers) and traffic (number of visits/page view, etc)

- Sport portal/media sites and Sport segment specific sites are first priorities- Computer/technology sites and travel info/tool sites are second priorities- General portal/news and other high-traffic sites are less effective for target web ads

- Generate forwarding traffic from web ads to Suunto’s web sites- Monitor click-through rate and evaluate advertisement effectiveness- Need to be connected to other marketing campaigns (e.g., user events, special offer, etc)

Expected Cost/Benefit:• Assumption: 1 banner ad per each target category (sport portal/media (1), sport segment specific (4), computer/tech (1), and travel (1)), cost $20 per thousand banner impression (reach)• ~$17K per month or ~$200K per year for 7 target sites, expected reach ~200K target consumers per month

Note: further cost/benefit study requiredSource: TrafficRanking.com, Alexa.com, Team Analysis

WEB ADS: TOP GENERAL SPORT PORTAL/ MEDIA SITESWEB ADS: TOP GENERAL SPORT PORTAL/ MEDIA SITES

Top 20 Sport Portal/ News /Media SitesTop 20 Sport Portal/ News /Media SitesNo Rank Domain Visits  Page

Views Links 

1 849 theinsiders.com 8,165 23,366 86,1932 1,594 rivals.com 6,828 29,025 200,5903 3,105 sportsnetwork.com 5,915 18,235 118,4854 10,794 ctvsportsnet.com 5,106 9,614 6,2585 10,868 espn.com 5,103 10,034 394,0886 11,107 allsports.com 5,096 9,506 48,0617 12,428 sportsfeed.com 5,057 9,145 5,6738 31,734 cnnsi.com 4,858 8,928 284,9489 35,400 sportserver.com 4,844 8,988 70,673

10 42,606 sports.com 4,826 8,757 92,20111 106,915 sports-central.org 4,774 8,722 19,02412 123,965 doitsports.com 4,770 8,687 20,35913 126,985 netsports.com 4,770 8,669 014 131,228 sportscribe.com 4,767 8,907 4,50515 170,132 armchairqb.com 4,763 8,683 016 177,698 psx.com 4,763 8,666 6817 218,205 iis-sports.com 4,760 8,669 13,35018 351,469 cbssportsline.com 4,756 8,645 18,10619 408,780 cswstats.com 4,753 8,690 020 496,485 sportsfilter.com 4,753 8,655 0

(1) Rated by TrafficRanking.com; sports.yahoo, sportingnews.com, sportinglife.com, and foxsports.lycos.com are excluded but ranked high by Alexa.com; (2) A trip to a site by an individual (not unique) staying more than 20 min; (3) Refers to No. of pages served; (4) HTML links on other web sites that lead to the siteNote: Figure is based on around 30,000 sample surfers selected by TrackRanking.com Source: TrafficRanking.com (6.2003), Alexa.com (6.2003), Team Analysis

(1) (2) (3) (4)

WEB ADS: TOP SPECIALIZED SPORT SITES DEDICATED TO SUUNTO’S TARGET SPORT WEB ADS: TOP SPECIALIZED SPORT SITES DEDICATED TO SUUNTO’S TARGET SPORT SEGMENTSSEGMENTS

Note: surveyed web sites include portal, news/magazine, and organization sites for each sport segmentNote: Figure is based on around 30,000 sample surfers selected by TrackRanking.com Source: TrafficRanking.com(6.2003), Team Analysis

No Rank Domain Visits  PageViews 

Links 

1 4,053 active.com 5,656 18,658 184,9032 15,593 gorp.com 4,991 9,604 330,0063 40,514 wildernet.com 4,830 8,928 21,1104 46,266 publicbookshelf.com 4,819 8,725 3,2545 47,610 outdoorreview.com 4,816 8,851 143,0166 57,267 backpacker.com 4,802 8,858 22,2787 79,212 peakware.com 4,784 8,788 23,6978 126,860 outsidemag.com 4,770 8,669 212,6899 168,347 progressivefarmer.com 4,763 8,690 6,024

10 178,310 thebackpacker.com 4,763 8,662 10,596

No Rank Domain Visits  PageViews 

Links 

1 46,925 boattest.com 4,816 9,114 9,9292 55,601 marinersguide.com 4,805 8,715 10,5963 99,616 forsailbyowner.com 4,777 8,673 04 179,549 latitude38.com 4,763 8,662 05 334,250 schoonerman.com 4,756 8,648 19,5256 422,244 boatingamerica.com 4,753 8,676 3287 708,539 bwsailing.com 4,753 8,641 08 829,949 sailing.com 4,753 8,641 0

No Rank Domain Visits  PageViews 

Links 

1 20,491 golf.com 4,928 9,247 60,0772 35,953 golfdigest.com 4,840 11,035 29,7043 43,210 worldgolf.com 4,823 9,149 50,1474 43,701 golfreview.com 4,823 8,897 141,0975 79,807 freegolfinfo.com 4,784 8,760 8,0936 173,209 ifyougolf.com 4,763 8,673 14,9357 212,746 golf101.com 4,760 8,676 4868 241,159 segetaway.com 4,760 8,648 5479 339,904 egolfweekly.com 4,756 8,648 0

10 395,739 st-duffer.com 4,753 8,718 0

X-sportsX-sports Snow SportsSnow Sports

GolfGolf MarineMarine

Top 10 Segment-specific Sport SitesTop 10 Segment-specific Sport Sites

No Rank Domain Visits  PageViews 

Links 

1 51,125 goski.com 4,809 9,142 42,0532 65,497 onthesnow.com 4,795 8,739 13,2673 87,389 ski.com 4,781 8,732 32,5414 122,977 skinet.com 4,770 8,694 05 131,869 myskitrip.com 4,767 8,862 06 145,974 skitown.com 4,767 8,673 38,5347 222,951 skimag.com 4,760 8,662 188 294,911 skiingmag.com 4,756 8,666 09 322,076 freezeonline.com 4,756 8,652 5

10 374,259 epicski.com 4,756 8,645 0

WEB ADS: INITIAL COST-BENEFIT ANALYSIS WEB ADS: INITIAL COST-BENEFIT ANALYSIS

Assumptions• 7 target sites: sport portal/media (1), sport segment specific (4), computer/tech (1), and travel (1))• 1 banner ads per site• Cost per thousand banner impressions: $10• Banner impression = number of visits• Internet users in US: 167million• Internet users between 25 and 49 years old: 52% of total Internet users• Expected target reach ratio: 22%

Source: Alexa.com, TrafficRanking.com, Internet Search, Team Analysis

Category Site

Daily reachper million

(3 mo.avg.)

% reach

Estimatednumber ofvisits per

month (US,million)

Internetusers

between 25-49 (US,million)

Targetreach

(millon)

Monthlycost (USD)

Yearly cost(USD)

Sport-general theinsiders.com 530 0.1% 0.09 0.05 0.01 885 10,621Sport-spec-outdoor active.com 126 0.0% 0.02 0.01 0.00 210 2,515Sport-spec-ski goski.com 12 0.0% 0.00 0.00 0.00 20 240Sport-spec-sailing boattest.com 42 0.0% 0.01 0.00 0.00 69 832Sport-spec-golf golf.com 102 0.0% 0.02 0.01 0.00 170 2,044Computer/Tech zdnet.com 2,080 0.2% 0.35 0.18 0.04 3,474 41,683Travel mapquest.com 7,250 0.7% 1.21 0.63 0.14 12,108 145,290Total 0.88 0.194 16,935 203,226

WEB ADS: FOCUS ON MAJOR SPORTS-RELATED SITES AND TECHNOLOGY/ TRAVEL SITES, WEB ADS: FOCUS ON MAJOR SPORTS-RELATED SITES AND TECHNOLOGY/ TRAVEL SITES, WHERE TARGET CONSUMERS AND HIGH TRAFFIC EXISTWHERE TARGET CONSUMERS AND HIGH TRAFFIC EXIST

Prioritization of Web Site Categories

• General portal/directory•General news/media• Shopping /auction

Tra

ffic

Consumer Target

Sport-enthusiastGeneral

High

LowPriority sites

•Travel sites • Sport portal/ news/media sites

• Other category-specific sites(1)

• Computer/tech sites

• Segment-specific sport sites

• Sport user group/club sites

(1) Entertainment, art, health care, business/economy, science, etc.Source: Team Analysis

Allow users to try out a product for limited time. Quick-user guide showing how to use basic functions.

Nurture community develop-ment through periodic communication with end-users

Opportunity for Suunto advocates to share experiences with others. A PC may be placed for on-hand demonstration.

IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM HAS THE POTENTIAL TO TAKE IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM HAS THE POTENTIAL TO TAKE THE WHISTLER/BLACKCOMB PARTNERSHIP FURTHERTHE WHISTLER/BLACKCOMB PARTNERSHIP FURTHER

Advocate Outreach User Acquisition Post-Purchase

Strategic Partnershipi.e. Whistler

Suunto Booth on site

S6 Demo Program

Special discounts for lesson

participants

Giveaway program to instructors

Work with instructors to incorporate WTC to improve game. Encourage them to post measurable results on Suuntosports. com

Lessons utilizing WTC as performance

enhancement tool

Communication of upcoming events

through newsletters

Encourage users to post “success stories” through giveaways

Suuntosports.com

Warranty Registration on Suunto.com

Purchase decision

KEY MILESTONES FOR RECOMMENDED ACTION ITEMSKEY MILESTONES FOR RECOMMENDED ACTION ITEMS

Action Items 3Q 2003 4Q 2003 1Q 2004 2Q 2004

Marketing Information Management

Marketing HR Improvement

Billboards Ads

Web Ads

Start w/ launch of N-Series

Start w/ launch of new X-sport/Snow product

Requirement study/design finish Develop. finishSystem

Open

Task force formed Plan finished New process launch Interim review

Marketing Process Realignment

Central board formed

Plan finished

Effectiveness evaluation

G9 Training Aid Program

Pilot in California

Interim reviewNew process launch

Replicate to FL, PX, LA, TX Replicate to the rest of US

M9 Training Aid Program

Pilot in California Replicate to FL, NY, TX Replicate to the rest of US

S6/X6 Try-Me Program

Pilot in California Replicate to the rest of US

Start planning

Start planning

Com

mun

icat

ion

Mar

ketin

g in

fras

truc

ture

FUTURE CONSIDERATIONSFUTURE CONSIDERATIONS

SO FAR, WE HAVE EXPLORED THE OPPORTUNITY SUUNTO HAS IN THE SHORT TERM TO SO FAR, WE HAVE EXPLORED THE OPPORTUNITY SUUNTO HAS IN THE SHORT TERM TO IMPROVE THE COMPANY’S POSITIONING IN THE U.S. MARKET BY STRENGHTENING THEIR IMPROVE THE COMPANY’S POSITIONING IN THE U.S. MARKET BY STRENGHTENING THEIR DISTRBUTION STRATEGY AND BRAND AWARENESS IN ORDER TO INCREASE PENETRATION DISTRBUTION STRATEGY AND BRAND AWARENESS IN ORDER TO INCREASE PENETRATION AMONG THE EXISTING TARGET SPORT SEGMENTS AMONG THE EXISTING TARGET SPORT SEGMENTS

# Customers

New

Pro

duct

Dev

elop

men

t

Current penetration

Increase penetration within current niche

Short Term Goals Long Term Goals

Goal: dominate sport enthusiasts niche• Increase quality of distribution channels

(search for value added service channels)• Emphasize product placement/ merchandising• Increase communication effectiveness and

strengthen brand awareness

IN THE LONG TERM, THE COMPANY COULD PENETRATE DIFFERENT MARKETS, WHICH MEANS IN THE LONG TERM, THE COMPANY COULD PENETRATE DIFFERENT MARKETS, WHICH MEANS EXPANDING TARGET CUSTOMER SEGMENTS AND OFFERING A NEW VALUE PROPOSITIONEXPANDING TARGET CUSTOMER SEGMENTS AND OFFERING A NEW VALUE PROPOSITION

# Customers

New

Pro

duct

Dev

elop

men

t

Current penetration

Increase penetration within current niche

Explore different niches

Penetrate different niches, introduce different products

Short Term Goals Long Term Goals

Goal: Create product innovator brand • Modify some products to go after additional sport users and

explore some other market niches• Attack mass sport segment (not just sport enthusiasts)• Perform minor product development to simplify• Increase presence in general sports retailers• Continue to strengthen Suunto brand awareness

Goal: Diversification to increase revenues • Leverage Suunto brand to explore new products (sports apparel)• Increase presence in additional distribution channels• Explore self owned Suunto stores or franchises

APPENDIXAPPENDIX

APPENDIX:APPENDIX:Distribution Matrix Definitions of Key Distribution Matrix Definitions of Key

Functions/ Characteristics Functions/ Characteristics

DEFINITIONS OF KEY FUNCTIONS AND CHARACTERISTICS RELEVANT TO DISTRIBUTION OF DEFINITIONS OF KEY FUNCTIONS AND CHARACTERISTICS RELEVANT TO DISTRIBUTION OF SUUNTO PRODUCTSSUUNTO PRODUCTS

Functions/ Characteristics

Match to Customer Target Retailers reflect target consumer profile of active participant/ sports enthusiast

Accessibility to Customer Target Stores are located in convenient, visible locations

Complementary Brand Image Status as premier quality retailer within category to reflect Suunto positioning as “mostdesired”

Image Fit - Sport Equipment Concept Reflects Suunto branding for the “active participant” and “sports enthusiast” consumer

Image Fit - Computer Concept Reflects Suunto branding as a “sport computer”Sport Knowledge of Sales Staff Staff identify with application of product to specific sports and able to emphasize

“performance measurement” benefitsTech Knowledge of Sales Staff Staff experienced and competent explaining technical functions of product

Customer Service Service is efficient and high quality

Market Research/ Feedback Potential Retailer relationships can provide insight into market trends and product perceptions oftarget consumer profile group

Prominence of Product Placement Verticals will be used and products will receive premier positioning in store

Potential to Carry Full Product Line Appropriateness for multiple sport lines in store

Scalability for Future Product Lines New sport lines or technologies can be introduced to store

Prim

ary

Seco

ndar

y

APPENDIX:APPENDIX:Sporting Goods Business’ Top 100 Sporting Goods Retailers Sporting Goods Business’ Top 100 Sporting Goods Retailers

SBG’s TOP 100 SPORTING GOODS RETAILERSSBG’s TOP 100 SPORTING GOODS RETAILERS

Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers

RevenuesDistributors Channel Type Rank (2001, in millions) StoresFoot Locker Footwear & Apparel 1 1,800 1,472 Sports Authority General Sports 2 1,400 198 L.L. Bean Specialty Sports - Outdoor 3 1,140 3 (12 outlet)Dicks Sporting Goods General Sports 4 1,050 125 Famous Footwear Footwear & Apparel 5 1,044 920 Cabelas Specialty Sports - Outdoor 6 875 7 Bass Pro Shops Specialty Sports - Hunting/Fishing 7 850 14 Champs Sports General Sports 8 800 574 Nike Manufacturer Owned 8 800 13 Academy Sports and Outdoors General Sports 10 775 60 REI Specialty Sports - Outdoor 11 740 61 The Finish Line Footwear & Apparel 12 701 449 Pacific Sunwear Footwear & Apparel 13 685 718 Big 5 General Sports 14 663 252 Footaction Footwear & Apparel 15 550 494 Galyan's Trading Co General Sports 16 483 26 Shoe Carnival Footwear & Apparel 17 477 183 Modell's General Sports 18 460 90 Just Four Feet Footwear & Apparel 19 450 88 Lady Foot Locker Footwear & Apparel 20 425 632 Journeys Footwear & Apparel 21 382 533 Sportmart General Sports 22 370 72 Gart General Sports 23 310 62 Play It Again Sports Footwear & Apparel 24 259 502 Orvis Specialty Sports - Outdoor 25 230 26

SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.

Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers

RevenuesDistributors Channel Type Rank (2001, in millions) StoresOshman's General Sports 26 256 45 Athletes Foot Footwear & Apparel 27 250 400 Eastbay General Sports 27 250 1 Gander Mountain Specialty Sports - Outdoor 27 250 55 Scheel's All Sports General Sports 27 250 20 Dunhams General Sports 31 245 116 Hibbett Sporting Goods General Sports 32 241 329 Reebok Manufacturer Owned 33 230 213 Sports Chalet General Sports 33 230 26 Golfsmith Specialty Sports - Golf 35 220 26 Pro Golf of America Specialty Sports - Golf Discount 35 220 145 Kids Foot Locker Footwear & Apparel 37 215 391 Bob's Stores Footwear & Apparel 38 210 34 MC Sporting Goods General Sports 38 210 70 Timberland Footwear & Apparel 40 204 23 (50 outlet)Edwin Watts Golf Shops Specialty Sports - Golf 41 200 49 Eastern Mountain Sports Specialty Sports - Outdoor 42 180 86 The Sportsman's Guide Specialty Sports - Outdoor 43 169 1 Performance Inc. Specialty Sports - Bike 44 150 47 G.I. Joes General Sports 45 135 18 Sketchers USA Manufacturer Owned 46 120 83 Hat World Footwear & Apparel 47 118 418 The Sportsman's Warehouse Specialty Sports - Outdoor 48 110 8 Vans Manufacturer Owned 49 103 160 GSI Commerce Other 50 103 n/a

SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.

Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers

RevenuesDistributors Channel Type Rank (2001, in millions) StoresOlympia Sports General Sports 51 102 84 Omni Fitness Specialty Sports - Equipment 52 100 65 The Walking Company Footwear & Apparel 52 100 97 Decathlon General Sports 54 95 21 Copeland Sports General Sports 55 90 37 Shoe Pavilion Footwear & Apparel 56 88 80 Campmor Specialty Sports - Outdoor 57 85 1 Jimmy Jazz Footwear & Apparel 57 85 35 Overtons Specialty Sports - Marine 57 85 3 Road Runner Sports Specialty Sports - Running 57 85 1 Dr. Jays Footwear & Apparel 61 80 17 Golf USA Specialty Sports - Golf Discount 61 80 89 Chicks Sporting Goods General Sports 63 78 9 Worldwide Golf Enterprises Specialty Sports - Golf Discount 64 75 35 Adidas America Manufacturer Owned 65 60 3 (43 outlet)Las Vegas Golf & Tennis Specialty Sports - Golf 65 60 25 Sports Endeavors Specialty Sports - Soccer 67 55 - Paragon Sports General Sports 68 52 1 Gym Source Specialty Sports - Equipment 69 50 22 Quicksilver Manufacturer Owned 70 47 28 International Golf Discount Specialty Sports - Golf Discount 71 45 48 Just Sports Footwear & Apparel 71 45 91 Ron Jon Surf Shop Specialty Sports - Other 71 45 4 Christy Sports Specialty Sports - Outdoor 74 43 36 Kittery Trading Post Specialty Sports - Outdoor 75 42 1

SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.SBG’s TOP 100 SPORTING GOODS RETAILERS CONT.

Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers

RevenuesDistributors Channel Type Rank (2001, in millions) StoresThe Pro Image Footwear & Apparel 76 40 80 Anaconda Sports General Sports 77 35 2 Martin's Golf & Tennis Specialty Sports - Golf 78 35 3 Popular Outdoor Outfitters Specialty Sports - Outdoor 78 35 23 Ski Market Specialty Sports - Outdoor 78 35 24 Tri-City Sporting Goods General Sports 78 35 1 Shoe City Footwear & Apparel 82 33 27 Special Tee Golf & Tennis Specialty Sports - Golf 83 31 18 Peter Glenn Specialty Sports - Outdoor 84 30 21 Turner's Outdoorsman Specialty Sports - Hunting/Fishing 84 30 13 Paradies/ PGA Tour Shops Specialty Sports - Golf 86 28 36 Fleet Feet Footwear & Apparel 87 28 38 City Sports General Sports 88 27 9 Bob Wards and Sons Specialty Sports - Outdoor 89 25 5 Golfers' Warehouse Specialty Sports - Golf Discount 90 24 5 Johnny Mac's Sporting Goods General Sports 91 22 4 Boyne Country Sports Specialty Sports - Outdoor 92 21 27 Fanbuzz.com Team Sports Apparel 93 20 - Kessler's Team Sports Team Sports Apparel 93 20 5 Schuylkill Valley Sports Team Sports Apparel 95 19 14 Bike Line Specialty Sports - Bike 96 18 22 Blades, Board, and Skate Specialty Sports - Outdoor 96 18 14 Dixie Sporting Goods General Sports 96 18 5 Fitness Holdings International Specialty Sports - Equipment 99 17 14 Push Pedal Pull Specialty Sports - Equipment 100 15 12

APPENDIX:APPENDIX:Top 100 Golf Courses in the USA Top 100 Golf Courses in the USA

THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPSTHE G9 IN PRO SHOPS

2001 1999Rank Rank

1 1 Pine Valley Clementon, N.J. Crump/Colt, 1918 2 2 Cypress Point Pebble Beach, Calif. Mackenzie, 1929 3 3 Pebble Beach Pebble Beach, Calif. Neville/Grant, 1919; Egan 4 4 Augusta National Augusta, Ga. Mackenzie/Bobby Jones, 1932 5 5 Shinnecock Hills Southampton, N.Y. Toomey/Flynn, 1931 6 6 Pinehurst (No. 2) Pinehurst, N.C. D. Ross, 1903-35 7 8 Sand Hills Mullen, Neb. Coore/Crenshaw, 1995 8 7 Merion (East) Ardmore, Pa. H. Wilson, 1911 9 9 Oakmont Oakmont, Pa. Fownes, 1903

10 10 Seminole North Palm Beach, Fla. D. Ross, 1929; D. Wilson 11 12 Winged Foot (West) Mamaroneck, N.Y. Tillinghast, 1923 12 14 San Francisco San Francisco, Calif. Tillinghast, 1915 13 15 Prairie Dunes Hutchinson, Kan. Maxwell, 1935-56 14 13 National GL of America Southampton, N.Y. Macdonald, 1911 15 11 Crystal Downs Frankfort, Mich. Mackenzie/Maxwell, 1929 16 16 Oakland Hills (South) Birmingham, Mich. D. Ross, 1917; R. T. Jones Sr. 17 - Pacific Dunes Bandon, Ore. Doak, 2001 18 23 Fishers Island Fishers Island, N.Y. Raynor, 1917 19 20 Chicago GC Wheaton, Ill. Macdonald, 1895; Raynor 20 17 Olympic (Lake) San Francisco, Calif. Reid, 1917; Whiting, R. T. Jones Sr. 21 19 The Country Club (Open) Brookline, Mass. W. Campbell, 1895; Flynn, Rees Jones 22 21 Oak Hill (East) Rochester, N.Y. D. Ross, 1926; R. T. Jones Sr., G.&T. Fazio 23 22 Baltusrol (Lower) Springfield, N.J. Tillinghast, 1922; R. T. Jones Sr. 24 18 Muirfield Village Dublin, Ohio Nicklaus/Muirhead, 1974 25 26 Riviera Pacific Palisades, Calif. Thomas/Bell, 1926

Course Location Architect

Source: Golf Magazine

THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT.THE G9 IN PRO SHOPS CONT.

2001 1999Rank Rank

26 24 Southern Hills Tulsa, Okla. Maxwell, 1935 27 28 Bethpage (Black) Farmingdale, N.Y. Tillinghast, 1935 28 27 The Golf Club New Albany, Ohio Dye, 1967 29 37 Whistling Straits Haven, Wis. Dye, 1998 30 25 Camargo Cincinnati, Ohio Raynor, 1921 31 30 Medinah (No. 3) Medinah, Ill. Bendelow, 1928; Collis, Packard 32 33 TPC at Sawgrass (Stadium) Ponte Vedra, Fla. Dye, 1981 33 29 Garden City GC Garden City, N.Y. Emmet, 1898; Travis 34 36 Winged Foot (East) Mamaroneck, N.Y. Tillinghast, 1923 35 35 Los Angeles (North) Los Angeles, Calif. Thomas, 1921 36 34 Quaker Ridge Scarsdale, N.Y. Tillinghast, 1926; R. T. Jones Sr. 37 46 Shoreacres Lake Bluff, Ill. Raynor, 1919 38 39 Inverness Toledo, Ohio D. Ross, 1919; G.&T. Fazio, Hills 39 32 Maidstone East Hampton, N.Y. W. & J. Park, 1891; Tucker 40 31 Shadow Creek North Las Vegas, Nev. T. Fazio/Wynn, 1989 41 44 Bandon Dunes Bandon, Ore. Kidd, 1999 42 43 Scioto Columbus, Ohio D. Ross, 1912; D. Wilson 43 49 Spyglass Hill Pebble Beach, Calif. R. T. Jones Sr., 1966 44 41 Harbour Town Hilton Head Island, S.C. Dye/Nicklaus, 1969 45 38 World Woods (Pine Barrens) Brooksville, Fla. T. Fazio, 1993 46 45 Ocean Forest Sea Island, Ga. Rees Jones, 1995 47 51 Somerset Hills Bernardsville, N.J. Tillinghast, 1918 48 40 The Honors Course Ooltewah, Tenn. Dye, 1984 49 42 Cascades (Upper) Hot Springs, Va. Flynn, 1923 50 47 Cherry Hills Englewood, Colo. Flynn, 1923

Course Location Architect

Source: Golf Magazine

THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT.THE G9 IN PRO SHOPS CONT.

2001 1999Rank Rank

51 50 Peachtree Atlanta, Ga. R. T. Jones Sr./Bob Jones, 1948 52 48 Wade Hampton Cashiers, N.C. T. Fazio, 1987 53 54 East Lake Atlanta, Ga. Bendelow, 1910; D. Ross, Rees Jones 54 57 Nantucket Siasconset, Mass. Rees Jones, 1997 55 53 Congressional (Blue) Bethesda, Md. Emmet, 1924; R. T. Jones Sr., Rees Jones 56 55 Valley Club of Montecito Santa Barbara, Calif. Mackenzie/Hunter, 1926 57 59 Double Eagle Galena, Ohio Weiskopf/Morrish, 1991 58 52 Colonial Fort Worth, Tex. Bredemus, 1935; Maxwell 59 61 Baltimore (Five Farms East) Timonium, Md. Tillinghast, 1926 60 60 Black Diamond Lecanto, Fla. T. Fazio, 1987 61 63 Interlachen Edina, Minn. Watson, 1910; D. Ross, R. T. Jones Sr. 62 58 Canterbury Cleveland, Ohio Strong, 1922 63 56 Shoal Creek Birmingham, Ala. Nicklaus, 1977 64 70 Wannamoisett Rumford, R.I. D. Ross, 1916 65 72 Kiawah Island (Ocean) Kiawah Island, S.C. Dye, 1991 66 62 Pablo Creek Ponte Vedra, Fla. T. Fazio, 1996 67 64 Yeamans Hall Hanahan, S.C. Raynor, 1925 68 66 Long Cove Hilton Head Island, S.C. Dye, 1982 69 65 Pasatiempo Santa Cruz, Calif. Mackenzie, 1929 70 73 Pete Dye GC Bridgeport, W.V. Dye, 1994 71 87 Salem Peabody, Mass. D. Ross, 1926 72 74 Baltusrol (Upper) Springfield, N.J. Tillinghast, 1923; Rees Jones 73 77 Plainfield Plainfield, N.J. D. Ross, 1920 74 67 Blackwolf Run (River) Kohler, Wis. Dye, 1988 75 86 Olympia Fields (North) Olympia Fields, Ill. W. Park, 1922

Course Location Architect

Source: Golf Magazine

THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT.THE G9 IN PRO SHOPS CONT.

2001 1999Rank Rank

76 - The Dunes New Buffalo, Mich. Nugent, 1996 77 69 Kittansett Marion, Mass. Hood, 1923 78 82 The Creek Locust Valley, N.Y. Macdonald/Raynor, 1925 79 79 Forest Highlands Flagstaff, Ariz. Weiskopf/Morrish, 1988 80 75 Oak Tree GC Edmond, Okla. Dye, 1976 81 96 Hazeltine National Chaska, Minn. R. T. Jones Sr., 1962; Rees Jones 82 91 Firestone (South) Akron, Ohio R. T. Jones Sr., 1960; Nicklaus 83 80 Myopia Hunt Club So. Hamilton, Mass. Leeds, 1896/1901 84 83 Crooked Stick Carmel, Ind. Dye, 1964 85 92 Desert Forest Carefree, Ariz. Lawrence, 1962 86 - Sea Island (Seaside) St. Simons Island, Ga. Colt & Alison 1928; J. Lee, T. Fazio 87 76 Yale University New Haven, Conn. Macdonald, 1926 88 88 Laurel Valley Ligonier, Penn. D. Wilson, 1960 89 81 Pumpkin Ridge (Witch Hollow) Cornelius, Ore. Cupp/Fought, 1991 90 84 Jupiter Hills (Hills) Tequesta, Fla. G. Fazio, 1970 91 78 Estancia Scottsdale, Ariz. T. Fazio, 1995 92 94 Butler National Oak Brook, Ill. G. & T. Fazio, 1974 93 93 Piping Rock Locust Valley, N.Y. Macdonald/Raynor, 1913 94 - Bel Air Los Angeles, Calif. Thomas/Bell, 1926 95 - Newport Newport, R.I. W. Davis, 1894; Tillinghast, D. Ross 96 98 Indianwood (Old) Lake Orion, Mich. Reid/Connellan, 1928; Cupp 97 71 Stonewall Elverson, Penn. Doak/Hanse, 1993 98 89 Troon GC Scottsdale, Ariz. Weiskopf/Morrish, 1986 99 - Bellerive Creve Coeur, Mo. R.T. Jones Sr., 1959 100 90 Pumpkin Ridge (Ghost Creek) Cornelius, Ore. Cupp/Fought, 1991

Course Location Architect

Source: Golf Magazine

APPENDIX:APPENDIX:Oakley / Fossil Strategy Overview Oakley / Fossil Strategy Overview

A MULTI-FACETED MARKETING STRATEGY HAS BEEN CORE TO OAKLEY’S BRANDING AND A MULTI-FACETED MARKETING STRATEGY HAS BEEN CORE TO OAKLEY’S BRANDING AND ENABLED OAKLEY TO BECOME AN IN-DEMAND BRANDENABLED OAKLEY TO BECOME AN IN-DEMAND BRAND

Sports marketing has been essential to Oakley’s branded strategySports marketing has been essential to Oakley’s branded strategyOakley has utilized sports marketing extensively to promote its products and their image

• Use of high-profile athletes that wear, evaluate and promote the company’s eyewear• Athletes and public figures selected to provide a pure editorial endorsement of the brand as opposed to a commercial endorsement • Most often accomplished through the use of two- to four-year performance contracts with small retainers• In addition, Oakley products supplied to athletes and public personalities that wear the sunglasses without any formal arrangement

at a reduced cost or without charge • The company internally employs a marketing staff to identify athletes in each market segment and niche, so it can negotiate the

contracts with the athletes, as well as educate and train the athletes in all aspects of Oakley products

Sports marketing supported with advertising through print media, outdoor media, in-store visual displays and other point-of-sale materials

• Advertising intended to educate consumers on the health and performance benefits of Oakley products as well as to impart technical information in layman's terms

• Print media campaign focused on sport publications such as Bicycling, Surfer, Powder and lifestyle/music publications such as Details and Rolling Stone

• Campaigns occasionally involved electronic media, primarily television, to promote its image and to introduce its brand name to a larger universe of potential customers. Oakley primarily selected specific sports programming such as the Olympics and the Tour de France and contemporary channels, such as MTV and ESPN

As of 1995, Oakley’s marketing budget represented approximately 6% of sales, of which it allocated approximately $5 million for endorsement arrangements and $3 million for advertising

OAKLEY HAS PROJECTED THE IMAGE AS AN IINOVATOR ACROSS ALL THEIR PRODUCT LINES OAKLEY HAS PROJECTED THE IMAGE AS AN IINOVATOR ACROSS ALL THEIR PRODUCT LINES AND CREATED AN EXPANDED DISTRIBUTION NETWORKAND CREATED AN EXPANDED DISTRIBUTION NETWORK

WITH A SIMILAR STRATEGY, FOSSIL IS A GOOD EXAMPLE OF DIVERSIFICATION BY MEANS OF WITH A SIMILAR STRATEGY, FOSSIL IS A GOOD EXAMPLE OF DIVERSIFICATION BY MEANS OF LEVERAGING ITS BRAND. FOSSIL IS EXPANDING THEIR MARKET REACH AND PRODUCT LEVERAGING ITS BRAND. FOSSIL IS EXPANDING THEIR MARKET REACH AND PRODUCT OFFERING OFFERING

Fossil produces over three hundred different styles of watches in a line which continually changesAfter augmenting the watch selection choice for consumers, Fossil expanded its selection to other fashionable accessory items Fossil introduced small leather goods in 1992 for men and women. Wallets, belts, key chains and backpacks helped Fossil establish its expertise in leather goodsIn 1995,Fossil moved into the eyewear market introducing uniquely designed sunglasses creatively capturing the Fossil imageIn addition, the company began opening a group of outlet stores nationwide creating its own distribution channel for discontinued itemsIn 1996, Fossil began opening several company-owned accessory storesDuring 2000, Fossil introduced its first line of apparel, launching it both on-line as well as through several larger format company-owned stores

APPENDIX:APPENDIX:Other Other

Suunto Brand Peeling off the Wristop computer

IMAGE POST PURCHASE IS ALSO IMPORTANTIMAGE POST PURCHASE IS ALSO IMPORTANT