2. AGENDA
• About VOLCOM
– 4Ps, 5Cs, STP
• SWOT
• Competition
• Core Problem
• Possible Solutions
• Critical Issues
• Recommendation
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3. ABOUT VOLCOM
• Board sports apparel brand (Surf, Skate, and Snow)
• Born in California in 1991
• Vecco Music Label
• Unapologetic; Mantra: “youth against establishment”
• Founders: Richard Woolcott, Tucker Hall
• First year sales 1991: $2,600
• IPO June 30, 2006: $89.1 million
• Purchased by Kering May 2011: $608 million
• Promotes through sponsorships, events, print ads,
music, film, retail stores, & online
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5. 5Cs of VOLCOM
• Customer – Direct to Consumer, Independent Retail, Licensees
• Competitors – Action sports based companies (ex. Vans, Billabong,
etc.) and Action sports divisions (ex. Nike SB)
• Collaborators – “The Core”; industry insiders with geographic target
areas; specialty apparel manufacturers
• Context – Sells VOLCOM brand: “youth against establishment”
• Company – Division of Kering: multinational apparel and
accessories
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6. STP MARKETING PROCESS
• Skateboarders
• Surfers
• Snowboarders
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Segmenting Targeting Positioning
• Pro-skaters/boarders
• Subgroups
• The Core
• Youth against
establishment
• True to this
• Authenticity
7. VOLCOM SALES TRENDS
United States Europe All Other
2006 $158 $5 $39
2007 $174 $40 $51
2008 $196 $78 $58
Sales (millions)
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Volcom products can be found in the United States, Europe,
Canada, Latin America, Asia Pacific, and Puerto Rico
2013 Total Revenue anticipated decline of 6.2% to $254MM
8. VOLCOM SWOT
Strengths Opportunities
• Connection to target market
• Recognized Authenticity
• Diversified sales model
• Global presence
• Increase presence in non-traditional
geographic markets
• Development of more established
collaboration
• Enhance cross-over between
clothing and non-clothing offerings
Weaknesses Threats
• Fast paced trends/taste industry
• Little control over manufacturing
• Consolidation in independent
retailer market
• Changing sports trends to non-3S
• Social acceptance of foundation of
Culture
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9. NIKE SB SWOT
Strengths Opportunities
• Strong Brand Recognition
• Core Sponsors
• Innovative ie Flash Pack
• Customizability
• Shoe quality
• Collaborations with outside
designers for more unique designs
• Bring back old styles generated
toward skateboarders that got Nike
started in SB
Weaknesses Threats
• Mainstream
• Not authentic board brand
• Independent Board Brands
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10. NO FEAR
• Authenticity is everything
• No core target from inception
• Poor supply chain management lead to over-
production
• Brand diluted through lack of focus
“If you don’t know where you are going, any road
will get you there.” – Lewis Carroll
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11. VOLCOM’S AUTHENTICITY
• Not over-extended
• Core values stem from passionate owners
• Sponsor with creative innovators ie Ozzie Wright
• Stick to their core values and mantra
CORE PROBLEM:
How does VOLCOM maintain the Authenticity that
drives brand value, while continuing to drive value for
stakeholders?
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12. GOING FORWARD…
1. Hyper-Localize – Allow individual markets to
operate independently as free-players under
the VOLCOM brand
2. Hyper-Globalize – Leverage resources of
Kering to expand presence in international
markets and economies of scale
3. Hybrid – Provide resources and business
expertise to local markets, but allow local
VOLCOM brands to channel the directions of
their local tribes
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13. CHANGING TRENDS
The Core
• Sponsored professionals
• Look down on newcomers
• Develop fashion trends
The Middle Ground
• Committed to skateboard lifestyle
part-time
• May have family/job/school
Periphery
• New to the sport
• May not participate
• Wannabes
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14. SKATEBOARDING TRIBE
Group of individuals that identify themselves based on a
shared commitment to a particular product, brand, or activity
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1. Ethos and Values
2. Risk-Taking
3. Individuality
15. SHOPPING EXPERIENCE
• Blogs centered on
underground
skateboarding videos,
bridging the culture gap,
and pro skater coverage
• Artistic designs on boards
and apparel
• DVDS & Music
• Passionate Team
• “if you love
skateboarding and don’t
care about the rules…
WELCOME!”
• “Contemplate your power
as an individual…”
18. DAVID GONZALEZ
Metal Subgroup
• Long hair
• Leather jacket
• Black clothing
• Satanic symbolism
• Heavy metal music
Behavior and Attitude
• Positive attitude
• High energy
• Adrenaline
• Risk-taker
• Persistent
• Creative
• Innovative
• Authentic
• Inspirational
• Pure
• Natural talent
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19. Recommendation
• Allow local subsidiaries to take advantage
of a hybrid local/global model
• VOLCOM global as a resource and not a
new “establishment”
• VOLCOM centrally develops catalogue
that local markets can either pull directly
from or pull inspiration from
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