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1. CCM Hockey:
The Re-Launch of the U+ Pro Skate
ADV 388K
Integrated Communication Management
Group 6
Zachary Bodner (bodnerzd)
Alex Hart (amh6375)
Xing Liu (xl5525)
Darya Procopovich (dp28353)
Emma Szyller (es34345)
The University of Texas at Austin

2. 1
Situation Analysis
Demographic Environment
While Hockey is popular in a number of countries, the market is concentrated in Canada,
the U.S. and Europe; the major European countries are the Czech Republic, Finland, Russia, and
Sweden. Buyers’ criteria when purchasing skates include brand, durability, fit and comfort,
weight and price. Depending on the market segment, the look of the skate is also important.
Many hockey players belong to households in the mid-to-high income brackets. More
than half of all hockey players in Canada live in households with incomes more than C $75,000
annually.
The manufacturers of hockey equipment consider winning the loyalty of the 12 to 18
years age group critical to their success. This target segment has been labeled ‘The Boss,’ and
has a major impact on sales because many of these players are growing and therefore regularly
need new equipment. In fact, some go through two pairs of skates in a single season. The Boss,
for whom hockey is a passion, enjoy the physical nature of the game and aspire to be “a player
with finesse, showing good moves, speed, and agility.” The Boss sees skates as the most
important piece of hockey equipment.
Table 1. Consumer segments
Personal Expression and
Performance Group
Smart Performers Price Conscious
Performers
Share of consumers 49% 45% 6%
Share of market US$ 59% = $365.8 Mil 37% = $229.4 Mil 4% = $24.8 Mil
Level of play Recreational/Elite Recreational/Elite Recreational
Age 18-20 years 12-17 years 18-20 years
Regional Prioritization CAN(1), US(2), RUS(3),
CZE(4)
CAN(1), US(2) CAN(1), US(2), SWE(3),
FIN(4)
Main concerns Image, product and
personal performance,
brand reputation and
brand popularity. They
want a brand that reflects
their style and personality.
Price is not a barrier.
Rational decision makers
who consider both value
and product performance
criteria when making a
purchase.
Price is paramount.
Subsidiary concerns Respond well to
endorsements from
players in the NHL;
Seek recommendations
from coaches, online
forums and sales staff
before purchasing;
Emotionally driven and
Want equipment that will
help them outperform the
competition while staying
within a budget; they
value superior product
design and performance;
don’t care much about
NHL endorsements or the
Also want durability and
value; they favor brands
that are priced within the
limited budgets.

3. 2
looking for leading edge
technology.
need for personal
expression.
While these three segments exist, their needs and behaviors are not very distinct. Thus,
there is some overlap. For instance, both recreational and performance players could be found in
the first two segments. The three segments also overlap with ‘the Boss’ consumer category.
Economic Environment
The hockey equipment industry has experienced relatively flat sales over the past few
years, and there has been a number of mergers and acquisitions among companies in the
industry. In 2006, the global hockey equipment industry was worth US $603 million and in 2007
it was worth US $642 million. In 2008, however, sales were down to US $620 million. It is
estimated that in 2009 sales will be relatively stable at US $615 million. According to the brand
managers, a family could sometimes spend as much as US $15,000 to US $20,000 annually for a
player in Bantam or Midget (AA or AAA) in the U.S.
However, in Canada, soccer has overtaken hockey as the most popular game among
younger demographic groups mainly due to cost. Relative to soccer, hockey is an expensive
game to play.
Natural Environment
There are relatively few skating rinks, so the cost of ice time is expensive and a
significant amount of travelling is required because of the distance.
Technological Environment
The technology of hockey skates and sticks is among the most visible emblems of the
sport and their technology often gives users an additional edge on the ice. Consequently,
manufacturers devote a considerable portion of their R&D budget to skate development, looking
for the next breakthrough in technology. Apart from weight, most of the quality features are
hidden from the buyer, except for the runner, the metallic blade of the skate that comes into
contact with the ice. Blades are made from either stainless or carbon steel. Carbon is considered
the cheaper blade but it delivers a much better edge that provides better and faster skating;
however, it does not last as long as the alternative.
CCM’s U+ Pro skate is the only true custom-fit skate on the market. It also features the
Rocket Runner, a new blade technology. Both of these new technologies result in the lightest
skate on the market, as well as the most thermo-formable. U+Pro skate is a one piece
construction that, when heated, takes the unique shape of each individual foot. There are no
sandwich layers, like traditional constructions, or pre-set shapes like competitors. This skate is
the only true custom-fit skate on the market. It also features a new blade technology. The new
U+Pro Reloaded - features an extra, more durable Sulyn outer layer, a new pro-approved felt
tongue, added padding in the ankle area and a tighter heel lock. In making this skate, CCM

4. 3
addressed all the product difficulties experienced in 2008, but did not change the overall ‘look’
of the skate.
Competitive Environment
In the past few years, many smaller equipment manufacturers have failed or have been
bought out by larger competitors. As a result, the hockey skate market is now made up of the
following key competitors: Reebok-CCM Hockey, Bauer Hockey, Easton, and Graf.
The global hockey equipment market is extremely competitive. Manufacturers compete
on innovation quality, brand and the use of endorsers who are often well known hockey players
from various teams and leagues (pg. 6). Hockey equipment companies are constantly looking for
ways to out-maneuver and steal market share from competitors.
Table 2. Competitor comparison
Reebok Bauer Easton Graf
Market share 20% 39% 19% 3%
Differentiator Has a real presence
in head-to-toe and
goalie; leader in
goalie equipment
Leading brand and
oldest competitor;
high quality goalie
and head-to-toe
equipment; brand of
choice among all
segments of the
market
Established name in
sticks and gloves
and growing force in
skates; does not
participate in the
goalie sector
Technologically
advanced, ultra
comfortable skates
Endorsers/
Partnerships
Sidney Crosby is
strongly associated
with the brand;
Patrice Bergeron;
Jason Spezza; Pavel
Datsyuk
Patrick Kane;
Evgeni Malkin,
Staal brothers;
International Ice
Hockey Federation;
Hockey Canada;
Hockey USA;
Nike
NHL; sponsor of the
Canadian Hockey
Association; Dan
Heatley; Henrik
Zetterberg; Jarome
Iginla
Image Stylish, innovative,
and modern
Stylish and built to
last
Trustworthy, proven
and an innovator in
stick technology
Product-
Driven;
Positioning “The technology
brand”; provides
performance for the
success-driven
player
At the high end of
the market, the
leading brand,
stylish long lasting
equipment
Trustworthy;
Innovator in stick
technology; first
company to launch
the one-piece
composite stick
Niche player that
specialized only in
high-end,
technologically
advanced, ultra
comfortable skates.
Marketing Strong and diverse Diverse media
outlets and heavy
reliance on
professional
Focuses on mass
media and
professional
exposure
Word-of-
mouth comms;
minimal presence
online; Strong

5. 4
endorsements. emphasis on retail
and staff education
Other competitors included Sherwood, Vaughn and Warrior, but their presence was of
little concern to CCM.
Product Environment
Hockey equipment can be classified into 5 categories: goalie, head/face, protective, sticks
and skates. Industry insiders refer to the last four as “Head-to-Toe.” A company that offers
equipment in all five categories is therefore referred to as a “goalie and head-to-toe” brand. Other
companies are referred to as “head-to-toe” if they manufacture everything except goalie
equipment. Goalie equipment is distinctive because the goalie needs special protection.
Most industry observers agree that the market for hockey equipment is showing signs of
maturation and hockey skates, together with sticks, are what drive the industry. Skates are often
named and players often identify with specific skates from different companies.
Hockey equipment is sold through pro-shops, independent retailers, mass merchandisers
and general sporting goods stores. In general, skates are sold at different price points. Quality
high-end skates, with the best features, benefits and materials, are priced between $400 and
$700. Medium quality skates are priced between $199 and $399 and low-end skates are priced
below $199.
In the past, CCM has typically launched a new product in November at a sales meeting
and then introduced the product into the market in March/April. The strategic timing of this
ensures that the new skate builds momentum in the late spring and is available in the Summer
when the majority of sales for new skates are made; sales then taper off at the end of Summer
when the “back to school” period hits.
Company Analysis
The CCM brand has experienced a sharp decline in sales and profits since its peak year in
2004. It is now ranked third in market share for skates, behind Bauer and Reebok. CCM has
fallen out of the consideration of elite players and has shifted its focus toward entry-level
products since sales declines have come almost exclusively from the elite product category. This
re-launch presents a significant challenge for CCM because a number of quality and marketing
missteps have occurred since the market introduction of the U+ Pro skates two years earlier.
During its long history CCM has developed its image as a classic, traditional and
authentic company that make long-lasting and reliable equipment. CCM positions its brand with
the tagline, “Performance Within.”

6. 5
SWOT Analysis
Strengths Weaknesses
Company
● During its long history CCM has
developed its image as a classic,
traditional and authentic company that
make long-lasting and reliable equipment.
● Over the years, CCM introduced a number
of innovative technological features into
the world of hockey (pg.5)
● CCM is ranked third in market share for
skates, behind Bauer and Reebok.
● CCM is the only company that
manufactures its top model skate in
Canada
● By including the content of U+University
on this site, CCM is further educating
those who are not able to attend the
Montreal product knowledge sessions
(pg.10)
Product
● U+ Pro skate is the only true custom-fit
skate on the market. It also features the
Rocket Runner, a new blade technology.
Both of these new technologies result in
the lightest skate on the market, as well as
the most thermo-formable.
● U+ Pro skates’ new design has tested
exceptionally well in focus group across
North America and Europe.
● CCM learned from past models to vastly
improve the fit (pg.11)
● U+Pro Reloaded have addressed all the
product difficulties experienced in 2008,
but did not change the overall ‘look’
(pg.10)
Marketing
● Floor staff has been educated on the
benefits of the improved skates, and they
can introduce that to customers.
Industry
● The industry is very conservative and old
school; many of the independent stores do
not use the internet, Facebook and Twitter
(pg.6)
Company
● The CCM brand has experienced a sharp
decline in sales and profits since its peak
year in 2004. It has fallen from being a
leader to now being third in the market
after Bauer and Reebok (pg.8)
● Recent CCM products have not lived up
to expectations (pg.8)
● CCM is unable to replicate past successes
(pg.8)
Product
● A physical inspection of the product does
not provide the buyers with much
additional information (pg.3)
● Shortly after the initial launch of the U+
Pro skate, it became apparent that it was
experiencing quality issues (pg.9)
● With the improvements made to the skate,
CCM can no longer claim that the skate is
the lightest on the market.
● Quality and marketing missteps preceded
the upcoming relaunch of the U + Pro
Skate
Consumers
● Credibility with ‘the Boss’ and retail
partners has slipped (pg.8)
Timing
● The new design will hit the stores in the
fall of 2010 which is risky because much
of the sales for new skates are made in the

7. 6
summer and tapered off at the end of
summer with “back to school”. So most
people will have already bought their
skates.
Opportunities Threats
Industry
● The market is concentrated in Canada, the
United States and Europe (pg. 2)
● Overall global hockey equipment industry
sales is gradually increasing (exhibit 1)
● Hockey is engrained in the psyche of
Canadians and it is seen by many as their
game - a national activity.
● Hockey skates, together with sticks, are
what drive the industry (pg.3)
Consumer
● Some members of the most important
consumer group (12-18 year old) go
through two pair of skates in a season
because they are growing.
Industry
● The hockey equipment industry has
experienced relatively flat sales over the
past few years, along with a number of
mergers and acquisitions among
companies in the industry (pg. 1)
● The market for hockey equipment is
showing signs of maturity (pg. 2)
● In Canada, soccer has overtaken hockey
as the most popular game among younger
demographic groups (pg. 2)
● In the United States, playing hockey is
also expensive (pg.2)
● Relative to soccer, hockey is an expensive
game to play (pg.2)
● There are relatively few rinks, so the cost
of ice time is expensive and a significant
amount of travel is often required of
players (pg.2)
● Percentage of players who eventually
played professionally was less than 0.1
percent (pg.2)
● The global hockey equipment market is
extremely competitive (pg.6)
Product
● missteps had occurred since the launch of
U+Pro skate two years earlier (pg.1)
● Apart from weight, most of the quality
features are hidden from the buyer (pg.3)
Distribution
● There are no sporting goods retailers in
the U.S. that is nationwide. This creates a
major challenge for the distribution of
hockey equipment in the U.S. (pg. 4)

8. 7
Problem Statement
What target audience, budget allocation and positioning strategy should CCM Hockey choose for
launching its next generation of U+ Pro Skates?
Critical Factors
1. Target Audience - each of the target audiences highlighted in the case have certain
concerns that are important to consider when targeting each segment. Also, each
consumer segment has an influence on the positioning strategy CCM should choose for
promoting its skates.
2. Budget Allocation - considering the importance that each target consumer segment puts
on various aspects of the branding and sales path, it is key that CCM effectively allocate
their budget to emphasize the categories on which each segment puts the most weight.
3. Distribution Channels: Seeding/Education of Sales Representatives - all potential target
segments care about conducting effective research and becoming educated on the brand
and product that are going to invest in. However, some segments care more about the
overall brand image while others are more rational decision makers and care more about
product value and performance.
4. Marketing/Advertising
a. Endorsements (Events/PR) - some consumer segments care about brand image
and endorsement from famous athletes and have needs for personal expression.
b. Social Media and Internet - potential target audiences include young people in age
range from 12 to 20 years old that use heavily social media and Internet.
c. Point-of-Purchase - some customers from potential target segments value brand
performance less care about NHL endorsements, and could be easier influenced
by shop assistants and more aggressive advertising at point-of-purchase.
5. Negative consumer and distributor experience surrounding previous product
launches - U+ Pro skate, which was launched in 2007, experienced quality issues.
Although these issues did not affect the performance of the skate, customers experienced
frustration, and CCM lost credibility with target audience and retail partners.

9. 8
Solution 1: Target Smart Performers / “the Boss” Segment;
Keep Existing Budget Allocation
This solution includes targeting Smart Performers / “the Boss” Segment and keeps the budget
allocation that was created when the campaign was launched in the 2007-2008 season.
Positioning
CCM positions the U+Pro Reloaded as the next generation of hockey skates. Since the target
audience is the Smart Performers, who value superior product design and performance within
budget, CCM should position the new product as refined technology. The company cannot
advertise the new skate as the most lightweight on the market, but it still has great performance
characteristics and customized construction for maximum energy transfer.
Distribution
CCM uses their independent sales agents, who are commission-based, to sell their products to the
different distribution channels. They also have an in-house key accounts manager that takes care
of major clients. In the rest of Europe, besides Finland and Sweden, CCM sells through
distributors. In addition, the team has a sales force that services all team business such as NHL,
AHL and CHL players. It also sells at the mass merchandisers’ level. When relaunching its
U+Pro Reloaded, CCM needs to focus on rebuilding the relationship with their independent
dealers. Inviting them to Montreal for learning sessions and training them to become qualified
floor staff is the first step in that process.
Marketing
CCM runs print ads featuring creative in all hockey publications, and employes digital marketing
on YouTube and ccmhockey.com. It also engages with grassroots events in conjunction with
hockey camps. CCM should also use its revamped 3point5.com website to train more dealers
who could not attend the in-person seeding session.
Budget Allocation
CCM invites its top dealers to attend knowledge sessions to re-establish the relationship with its
independent dealers. Those who attend the session will become fitting specialists, and will talk to
consumers about the improved benefits of the newer skates. The U+University helps train staff
from all over the world. The launch will start in the fall of 2010, during “back to school” season.
This solution targets 12-17 Smart Performers. With a launch budget of $1 million. The budget
allocation is as follows: 15 percent media and internet, 12 percent production, 9 percent creative,
10 percent point of purchase, 20 percent events/PR, 5 percent research, 3 percent seeding, 16
percent sales and marketing, and 10 percent miscellaneous.

10. 9
Table 3. Original Budget Allocation
Pros:
1. The Smart Performers segment, age 12-17, are growing, and therefore regularly need new
skates.
2. The Smart Performer segment consists of 45 percent of consumers. It is the second
largest segment in the hockey equipment market.
3. Reaching “The Boss” at this age will promote brand loyalty as they continue their hockey
and skating careers.
Cons
1. Credibility with ‘the Boss’ has slipped.
2. The Smart Performers group does not care about NHL endorsement or the need for
personal expression, therefore 20 percent budget on PR and events may be excessive and
not hit the right target audience.
3. By allocating only 3 percent of the budget for the seeding strategy, CCM may be missing
an opportunity to invite more independent dealers to their U+University. This also limits
educational resources they can offer on the internet.

11. 10
Solution 2: Target Smart Performers/’the Boss’ Segment;
Adjust Budget Allocation
This solution includes targeting Smart Performers/’the Boss’ Segment and adjusting the budget
allocation in a way that will reach target audience under new circumstances.
Positioning
The Smart Performance segment are rational decision makers and as a consequence, they are
sensitive to price. This is largely due to the fact that they usually need more than one pair of
skates in a year and, because of their age, their parents pay for the hockey equipment. To justify
the high price and regain the trust of the target audience, CCM Hockey should position U+ Pro
Reloaded Skates as high quality skates. This segment values superior product design and product
performance criteria, and CCM should mention U Foam, which makes the skate custom-fit for
maximum energy transfer, and the Rocket Runner, a new blade technology that provide superior
performance characteristics.
Distribution
Use the same distribution channel as solution number one, however, because CCM will allocate
more of their budget to the seeding strategy, they must leverage their resources that contribute to
training their dealers and creating floor staff members who actively engage in conversation with
consumers to explain the value proposition of these new skates compared to the older version.
Marketing
Use the same marketing spending as solution number one, but change the budget allocation to
spend more on point-of-purchase, because this will appeal to the target audience when they shop
in-stores and will provide a clear direction to the location of sales. CCM should also allocate
more money on media and internet. It will give the company great advantage in reaching target
audience because the use of internet this age group engages.
Budget allocation
CCM should increase the budget allocation for seeding strategy up to 6 percent because the
Smart Performers segment cares much more about product performance, and staying within a
strict budget. This strategy hinges on the idea that by having more floor staff who can convey the
value proposition of these new skates to prospective buyers, the target audience will see that
although the outside of the skates still look the same, the inside quality is greatly improved and
will help the players perform better on the ice. In addition, CCM will also increase its media and
internet budget allocation to 16.5 percent to attract more internet users. Based on the fact that this
age group is growing and needs new skates very frequently, we recommend that CCM develop a
loyalty program that allows customers to purchase a new pair of skates twice a year so they will
stay within the CCM brand for the next purchase.

12. 11
Table 4. Adjustment of Budget Allocation
Add allocation to:
● Media and Internet (+ $15,000)
○ The target audience for this solution, 12-17 year olds, is very enmeshed in social
media and technology as a whole. Overall, this segment is one of the largest
consumers of media. As a result, we suggest adding ~$15,000 of the budget
allocation to this category to ensure that CCM is constantly reaching their target
audience.
● Point-of-Purchase (+ $10,000)
○ This target audience doesn’t care as much about NHL endorsements compared to
the older 18-20 year old Performance segment. As a result, their opinion of a
brand and it’s products will largely come from the information they find online as
well as the branded materials they see in stores. As a consequence, we suggest
allocating additional funds to the point-of-purchase category to make sure all
CCM materials and products are attractive to potential customers.
● Seeding (+ $30,000)
○ Due to the fact that this target audience are rational decision makers who consider
both value and product performance, it is key that CCM ensure that their sales
representatives are knowledgeable and can help potential customers understand
the value proposition of CCM’s skates.
Reduce allocation:
● Production (- $15,000) and Creative (- $10,000)
○ Large budget allocations for production and creative are necessary when targeting
consumers who weigh brand image and expensive advertising (e.g., TV
commercials, billboards) over everything else. Because the target segment for this
strategy care more about product value and product performance, it is reasonable
to pull some of the budget allocation from these two categories in order to invest
it into categories that will be more effective with our target audience (e.g., media
and internet, seeding, and point-of-purchase).

13. 12
● Events/PR (- $30,000)
○ Due to the fact that this target audience has little interest in NHL endorsements,
we suggest pulling some of the budget allocation from this category because it
will be used more effectively elsewhere.
Pros:
1. Since the new U+Pro Reloaded skate looks exactly the same as the old version, the
seeding strategy allows floor staff to proactively explain the difference to customers.
2. Customers will spend less money on buying the same shoes if they make the second
purchase within one year, thus CCM can maintain customer loyalty with the brand.
3. As the strategy spends more money on the internet campaign, more people will benefit
from additional floor staff being educated about the product value, even if they could not
attend to the Montreal knowledge session.
4. The Smart Performers group is growing, and therefore regularly needs new skates.
5. The Smart Performers segment frequently uses internet to search for information.
Increasing media and internet budget allocation will help achieve a higher impression and
sales goal for U+Pro Reloaded skate.
6. The seeding program will help regain independent retailers confidence in the product.
7. Reaching “The Boss” at this age will promote brand loyalty as they continue their hockey
and skating careers
Cons
1. Credibility with ‘the Boss’ has slipped.
2. Many independent stores do not use computers and many are not familiar with the
internet. Training them on the new features of U+Pro Reloaded skate will be a challenge.

14. 13
Solution 3: Target Personal Expression and Performance Group Segment;
Change Budget Allocation
This solution involves adjusting the target audience and budget allocation. This solution suggests
that CCM target the Personal Expression and Performance Group Segment and allocate the
budget in another manner compared to the budget composition in the 2007-2008 season.
Positioning
Because Personal Expression and Performance Group Segment members respond well to
endorsement of famous NHL players and care about brand popularity and brand reputation, the
new U+ Reloaded Pro Skate should be positioned as a high-end skate that is used during the
most important tournaments and games. This skate is custom-fit and fully customizable for
reflect consumers’ style and personality in a best way. The U+ Pro Skate featured U Foam and
the Rocket Runner, a new blade technology.
Distribution
Due to the fact that this target segment (18-20 years old) is most influenced by endorsements and
online information, the in-store purchase experience is less important. Moreover, by the age of
18, most people’s feet have stopped growing. As a result, these consumers should already have a
good idea of their preferred size and skate fit. Thus, they do not need to try on multiple size
options in a store and instead can go online and be more confident with an online purchase.
Given these facts, CCM should aim to distribute more of their skates online for this strategy as
opposed to pushing sales through independent retailers.
Marketing
Use the same marketing strategy as solution one. This is based on the fact that this target
audience cares more about image, brand reputation and a brand that can reflect their style and
personality. CCM should allocate more of the budget towards NHL endorsement to attract this
group. Reduce the budget for point-of-purchase since this group cares more about the
recommendations from coaches, online forums and sales staff before purchasing rather than the
in-store appearance of displays. They should also add more to the media and internet spending
because the target audience relies heavily on social media and the Internet when searching for
information regarding new skates and equipment.
Budget allocation
CCM will target the Personal Expression/Performance group, 18-20 year olds. Since this group
is concerned with image, brand reputation and popularity, this strategy will focus more of the
budget allocation toward NHL endorsements. At the same time, they will partner with numerous
leagues to let the coaches and athletes “test-drive” the skates before investing such a significant
amount of money. This should ensure that customers do not have any buyer’s remorse or
cognitive dissonance about spending so much money on their skates. As a consequence, the
number of return customers will hopefully increase. The Performance group then would search
for recommendations from coaches, online forums before purchasing.

15. 14
Table 5. Adjustment of Budget Allocation
Add allocation to:
● Media and Internet (+ $15,000)
○ The target consumers for this strategy want the brand to reflect their style and
personality; they are emotionally driven and are looking for leading edge
technology. Moreover, they are still within the age range of high media
consumers. Due to these facts, it is imperative that CCM focus a good portion of
their budget allocation on their media and internet efforts.
● Events/PR (+ $15,000)
○ The target consumer for this strategy cares greatly about the image of the product,
personal performance, brand reputation and brand popularity. They also respond
well to endorsements from players in the NHL and seek recommendations from
coaches, online forums, and sales staff before purchasing. Given these facts, it is
important for CCM to focus more of their promotional efforts and budget on the
events and public relations category to increase the overall brand image and
endorsements.
Reduce allocation:
● Point-of-Purchase (- $20,000)
○ The target consumer segment cares much less about in-store advertising efforts
and much more about the overall brand image across social media, elite players,
and the top hockey organizations. As a result, CCM can sacrifice some of their in-
store point-of-purchase budget in order to put it toward more lucrative advertising
efforts.
● Seeding (- $10,000)
○ Although this consumer segment relies on produce recommendations from
coaches, online forums and sales staff, those recommendations are not as
important as the overall brand image and the consumer’s personal and emotional
connection with the brand. Given this fact, CCM should take a small portion of
the seeding budget allocation and reallocate it toward more effective categories
(e.g., media and Internet, and events/PR)

16. 15
Pros:
1. The Personal Expression and Performance group makes up 49 percent of consumers,
which is the largest segment among the three consumer segments.
2. This group cares about brand reputation. Thus, celebrity endorsement will influence this
group’s purchasing decision.
3. The seeding program will help regain independent retailers confidence in the product.
4. Point of purchase can attract customers’ attention and direct people to the right place to
purchase the skates.
5. Price is not a barrier for this segment.
6. Other manufacturers mostly focus on ‘the Boss’ segment, by focusing their efforts on a
different segment, CCM would have less competition for this target audience.
Cons
1. Since the group cares about image and personal style, it is hard to differentiate the new
U+Pro appearance from the old version. By only improving the fit, this target group may
not be convinced to switch back to this new skate.
2. Since the Personal Expression and Performance Group Segment is less influenced by
recommendations from the staff at stores, the budget allocated for seeding is less.
Because of this, the suggested strategy would not restore the relationship between CCM
and their distributors.
3. Most manufacturers focus on the younger target audience (12-18 years old), and by the
age of 18, this target audience is already loyal to some brand. CCM should put much
effort to lure them because this will pose a significant challenge for this solution.
4. By ignoring The Boss, an opportunity to continue to provide them with skates as they
progress through their hockey and skating careers may be missed.

17. 16
Recommendation
Solution 2: Target Smart Performers/’the Boss’ Segment; Adjust Budget Allocation
We recommend CCM choose solution 2; targeting the Smart Performers/’the Boss’ segment,
adjusting the budget allocation to focus more on Seeding, Media and Internet, as well as Point-
of-Purchase materials and spending less toward Production, Creative and Events/PR. We think it
is imperative that CCM hit consumers when they are young in order to build brand loyalty and
allow the players to grow with the brand. If CCM chose to target the 18-20 year old segment,
they would face a significant challenge of persuading consumers who are already loyal to other
brands to switch over to the CCM brand. Moreover, ‘the Boss’ age group needs more skates and
as a consequence, targeting them will provide more sales opportunities for CCM.
A re-launch of U+ Pro Skate will help CCM achieve their objectives from their previous
campaign launch in 2008 (pg. 8):
1. Superior skates with no quality issues would re-establish CCM’s credibility as a high
performance skate brand among elite players. CCM allocates 17% of its budget for events
and PR, and it will be used to emphasize endorsement with the leading NHL players.
2. The new re-launched product address all the product difficulties experienced in 2008 and
in order to inform customers and retails partners, CCM will increase spending on seeding
by 100% compared to the previous budget.
3. The above point will help create consumer pull at the retail level around the U+ story and
will help retail partners regain the confidence they had lost in CCM.
4. After a successful re-launch, the company may translate this technology to mid and entry
price point products and will have an advantage by working with that segment.
5. In order to create a solid connection to the technology story and platform across key
product categories CCM should position its new skate as a high quality skate that
provides superior performance characteristics.
Moreover, the case states that successful market launches require the product to be innovative,
used and validated by the pros and to have a performance/technology story that creates a unique
selling proposition. All three components are needed in order for CCM to ensure the best chance
of a successful launch. The components are as follows:
1. Product Innovation
The new CCM U+Pro Reloaded remains the thermo-formable U-FORM technology, takes the
unique shape of each individual foot when heated, no sandwich layers, or pre-set shapes like
competitors. The fit has been vastly improved and has tested exceptionally well in focus groups
across North America and Europe. The product overall ‘look’, however, has not changed. Since
CCM targets Smart Performance group, this segment values superior product design and
performance and puts more weight on the advice and expertise of experienced salespeople as
opposed to endorsements by famous hockey players. To influence them more, allocating a larger
segment of the budget toward seeding that allow the floor staff to explain the benefit behind the
new U+Pro Reloaded would help the consumers to differentiate the old version and new version.

18. 17
2. Pro Validation
Although the proposed strategy does not rely as heavily on professional endorsements as the
third solution, partnerships with players and other endorsement deals are still important,
particularly during the initial stages of a product launch. While the target market for this
recommendation do not put as much weight on NHL endorsements, it is still important for CCM
to use their players to prove that the product is tried, tested and validated by the best of the best.
However, because CCM is choosing to launch this product in the fall as opposed to late spring,
they need to find an innovative way to create a pre-launch campaign to build hype around the
product during the key skate purchasing period (the standard late spring launch dates are
strategically timed to coincide with the NHL Playoffs when the best elite players are competing
for the Stanley Cup). Because they cannot leverage the standard timing of launches, CCM should
create a pre-launch campaign that focuses on their players preparing for the upcoming season
(which starts in October). They can create relatively cheap content by highlighting the practice
and preparation that typically goes on off camera.
3. Marketing Communications
Because the credibility with ‘the Boss’ and retail partners has slipped, it is crucial that CCM
create a comprehensive advertising and marketing strategy to appeal to these consumers and
retail partners again. In order to accomplish this, CCM will have an integrated marketing strategy
across media and internet, social media, NHL player endorsements and all other advertising
efforts.
The comprehensive seeding strategy suggested for this solution will ensure that CCM will get in
the hands of both influencers and key players. Additionally, all CCM sales staff will be highly
educated on the benefits, quality and overall value of the skates through both the U+University
and CCM’s online educational materials. Because CCM needs to overcome the hurdles of their
past launch fails, these things taken together will help potential customers understand the value
proposition of the new skates and hopefully pull in customers they lost due to the past debacles.
Additionally, the target audience relies on retail staff recommendations and may make a final
decision about purchasing a pair of skates in a shop. As a result, CCM will also increase the
budget allocation for point-of-purchase advertising because this is a key moment in the purchase
path of this target consumer group. In addition to that, the company needs a pre-launch teaser
campaign and POP ads as well as encouraging store staff to potentially convince customers to
wait several months till the re-launch of the U+ Pro Skates before purchasing skates in order to
receive a better deal (which is a very important part of the purchase decision for the target
audience).
Therefore, using this strategy CCM would meet customers’ needs, restore slipped credibility
with the target audience and retail partners, meet the campaign objectives, and re-establish
company’s reputation as a manufacturer of high-quality skates for elite players.