1. Bauer 1
Bauer
Group: Zoe Hahn, Steve Gardiner & Kimone Reid
Teacher: Justine Paquette
Course: SPRT 254
Due Date: Wednesday March 27th 2016
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Index:
Part A: History of Bauer………………………………………………………………………3
Part B: Position in Marketplace……………………………………………………………….4
Part C: Corporate Social Responsibility Strategies…………………………………………...7
Part D: Product and Brand Loyalty…………………………………………………………...8
Part E: Distribution Channel………………………………………………………………….12
Works Cited…………………………………………………………………………………..14
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Part A: History of Bauer
Bauer was founded in Kitchener, Ontario in 1927 by the Bauer family. Known to the hockey
world’s as the most recognized designer, marketer and manufacturer in hockey equipment. In
1976 Bauer Hockey became the first hockey company to being producing hockey skates in
which the blade was permanently secured to the boot which was introduced has the TUUK blade
holder. Now more then 83% of NHL players currently used them. An investor group called the
Kohlberg Funds in April 2008 acquired the Bauer Hockey Business from Nike (Bauer
Performance Ltd, 2013).
Throughout the years the Bauer Business continued to grow. In September 2008 Mission-ITECH
was acquired. The Mission-ITECH Brand is recognized for their contribution to roller hockey.
To make their presents know into another sport Bauer decided to acquire the Maverik Lacrosse
in June 2010 that provide lacrosse players with the best lacrosse equipment and in June 2012
they acquired Cascade which now could help them build on their lacrosse equipment line since
Cascade is know on the market as the leading company for lacrosse helmet and head gear (Bauer
Performance Ltd, 2013).
Four months later Inaria was acquired in October 2012. This allowed Bauer to know not only
build on their equipment line but to start to building on their team apparel line. With the
acquisition of Inaria, Baurer could now start designing, developing and manufacturing team
uniform for hockey, roller hockey, lacrosse, soccer and other team sports (Bauer Performance
Ltd, 2013).
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To expand their platform into high performance Bauer acquired Combat Sports in May 2013.
With the acquisition of Combat Sports they were able to expand their high performance platform
into baseball and softball (Bauer Performance Ltd, 2013).
Part B: Position in the Marketplace
Over the past 85 years not only has Bauer become the most recognized brand when it come to
the ice hockey equipment industry, it has also become synonymous with the sport of hockey as
many players from the adult to youth, and even professional level can strongly identify with
Bauer (Bauer, 2013). Bauer has gained strong brand recognition through consistent brand
communication, their true to the game authenticity and regularly bringing innovative, top-quality
equipment to the market. This strong brand recognition creates significant barriers to companies
trying to enter into the market (Bauer, 2013). This is due to the fact that many consumers believe
brands with authenticity and heritage understand the needs of their consumers and will provide
the best products. Due to the fact that Bauer has created such a strong brand more retailers want
to carry Bauer products over other competitors, as well as carry a full range of Bauer products
(Bauer, 2013).
In the 2013 fiscal year Bauer held 53% of the overall market share in the ice hockey equipment
market. By introducing new product in most of their equipment categories every year, and
alternating between the Vapor, Supreme, and Nexus lines, Bauer has been able to drive market
share growth (Bauer, 2013). By introducing new product every year Bauer has been able to
grown sales, create excitement and dialogue between retailers and consumers, they have also
been able to maintain a significant advantage over competitors that do not introduce product as
often (Bauer, 2013). Bauer is the top demanded and worn by the most elite players in the world,
almost 90% of NHL players either used or wore at least one piece of Bauer equipment during the
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2012-2013 NHL season, and 25% of players in the NHL have endorsements to wear Bauer from
head to toe (Bauer, 2013).
Research and Development
Bauer is dedicated to improve safety and player performance at all levels of play, they do
this through equipment and apparel innovation. With a dedicated team of over 54 people
including designers, developers, engineers, and technicians, Bauer is able to maintain world class
reputation of leading the ice hockey equipment industry, and constantly bringing innovative, and
revolutionary equipment that is trusted by players at all skill levels (Bauer, 2013). Bauer uses a
rolling five-year innovation cycle, which allows them to launch between 100 and 150 new
hockey equipment products each year for each of the hockey equipment categories.
Manufacturer and Retailer Relationships
Bauer has approximately 829 retailers in Canada, 2646 in the U.S, and 613 in Finland and
Scandinavia, and 61 distributors outside these countries that sell to more than 1000 retailers in
other countries. Due to Bauer’s large size they are able to support retailers in different ways,
such as, “retail merchandising alliances, in store display units, order purchasing and inventory
management systems, grassroots product demonstrations, and education, digital and social media
initiatives” (Bauer, 2013, 15).
Innovation and Growth
Bauer’s management team has developed and is executing a growth strategy, they have
also executed strategic initiatives to distinguish themselves from the competition. These
initiatives include (Bauer, 2013):
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- Introduction of a Two SeasonProduct Launch Schedule: Bauer has created a
schedule for two annual product launches, the first one is called the Back To Hockey
season, from April to September, the second is the Holiday season which is from October
to March. Bauer was the first company in the industry to do this, and it has now become
the industry standard.
- Category Management Approach: Bauer was the first company in the hockey
equipment industry to organize their team into smaller cross-functional teams that are
dedicated to specific product categories, for example, skates. This has allowed them to
better target the needs of their consumers and retailers and to also respond more quickly
to the specific market dynamics within each product category.
- BauerWorld: Bauer has created an annual, multi-day customer event to showcase their
new hockey equipment and apparel products, and conduct retailer education seminars. In
October of 2012, Bauer held their BauerWorld 2013 where approximately 575 attendees
from more than 25 countries were present. By demonstrating their technological
innovations, BauerWorld helps to show their commitment to their retailer base.
BauerWorld is exclusive to a single hockey equipment manufacturer, whereas other
tradeshows are not, making it the only one of its kind.
- CustomerOne: CustomerOne is a platform of competency training, processes and tools
that jointly maximize the partnership between Bauer Hockey and its customers. The
initiative regular retail management education, web-based order facilitation, and online
inventory management tools. Having this technology creates the ability to place and
check orders and inventory twenty-four hours a day, seven days per week. Today,
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approximately 48% of Bauer’s hockey orders are received on-line through CustomerOne
web portal.
Part C: Corporate Social Responsibility
1. Community Development
o Bauer could use some of their revenue to help to create a better environment to
live and work. For example, setting up a foundation to assist in learning or
education for the public.
2. Voluntary Hazard Elimination
o Bauer could become involved in taking action to eliminate production practices,
regardless of whether they are required by law.
o According to Bauer, they are not aware of any environmental issues but still could
be use this as a way to further elimination hazardous production practices.
o “We are not aware of any material environmental problems with respect to any of
our operations or facilities. Existing applicable environmental laws and
requirements have not had any adverse financial or operational effects on our
capital expenditures, earnings or competitive position and we do not anticipate
that continuing compliance with such laws and requirements will have a material
adverse effect upon our expenditures, earnings or competitive position in future
years” (Bauer Performance Ltd, 2013, p. 26).
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Part D: Products & Brand Loyalty
Products: Supreme 1s Composite Hockey Stick & Vapour 1x Skate
In this section the authors will be explaining how the above products became successful and
stayed as the companies’ top products. To do this, the 6 stages of Brand Loyalty will be used to
explain how Bauer products gain recognition and are able to stay as top high performance
products.
Brand:
Bauer is the most recognized brand in the world for hockey equipment and has been a
recognizable part of the sport for over 85 years (Bauer Performance Ltd, 2013). Generations of
hockey players connect with the brand, and over the years an image of high quality products for
all ages (Bauer Performance Ltd, 2013).
Bauer credits they`re strong brand recognition to persistent communication, `true to our game`
authenticity and regular implementation of top-quality innovated sport products with a high
performance (Bauer Performance Ltd, 2013). The recognition of the brand makes it very difficult
for other companies to produce hockey equipment at a high level, as most athletes know that
Bauer understands they`re core market (sport) and will offer the best products to improve the
individual athlete, as well as the sport as a whole (Bauer Performance Ltd, 2013). Lastly, what is
to be considered Bauer`s greatest strength, more retailers carrying they`re products. Because of
the strong brand recognition retailers gladly take on Bauer equipment knowing it will sell (Bauer
Performance Ltd, 2013).
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With all this information about the Bauer brand you can see how and why they`re products do so
well in the market. They own the market of Hockey equipment, athletes trust them and they
continue to improve technologically and quality wise.
Product Quality:
Skates:
Bauer can offer many explanations on how they`re product sells well but I think they`re biggest
strength is Product Quality.
Bauer hockey skates were worn by 71% National Hockey League Players as of 2013 and this is
said to be on the rise, as more players switch to more quality (Bauer Performance Ltd, 2013).
Some of the biggest athletes in the NHL (Jonathan Toews, Steven Stamkos, etc) put their name
to the brand, this speaks to the quality of the product, because if the guys who play at the highest
level are willing to use the product then it must be high quality.
Edge holder technology and multiple patented boot construction methodologies which help with
the turning radius and overall better fit, are some of the features that Bauer has implemented in
they`re skates to increase product quality (Bauer Performance Ltd, 2013).
Stick:
Bauer hockey sticks are used by nearly 44% of all NHL players. Bauer offers customized sticks
that fit each individuals needs (Bauer Performance Ltd, 2013). Customizations offered are:
- Special flex technologies
- Grip
- Curves
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- Colors (Bauer Performance Ltd, 2013)
These customizations show the quality that your getting in product, because your getting the #1
stick in all of the sports world, plus customizations to meet your needs.
Price:
Bauer hockey sticks range in price from $100-$600 sometimes more, depending on the quality of
stick and the customizations. While Bauer skates range from $50-$1000 depending on the quality
of skates (Bauer Performance Ltd, 2013). Bauer justifies this by the technology and research put
into each product they produce. Consumers are willing to pay the money because they trust the
brand and its quality.
Bauer as a part of they’re pricing offers 3 kind of categories which all they’re products fit into;
1. Elite – for elite players including NHL players or other sport leagues. Consumers will
pay a premium price for best performing equipment (Bauer Performance Ltd, 2013)
2. Performance – for high-level players who buy advanced equipment for a competitive
edge. Usually between the ages of 12-22 (Bauer Performance Ltd, 2013)
3. Recreational – for players of all ages who look for comfort and value (Bauer Performance
Ltd, 2013)
These 3 categories help Bauer to reach all over the target market through all price ranges.
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Style:
Bauer always tries to make they’re product stylish. Part of the appeal of Bauer equipment is the
customization of equipment, between color, personal name on equipment and personalization of
the design it always guaranteed you will get a stick the way you want it to look.
Another initiative that strengthens the style of the Bauer’s equipment is the Athletes endorsement
initiative. This initiative takes National Hockey League players such as Steven Stamkos and
Patrick Kane and uses them to wear they’re equipment which then adds another part to the style
of they’re equipment. Bauer is a stronger believer that if you can get the top of the line
professional athletes to use they’re equipment and be a voice for them, then they will add more
style appeal to the already stylish equipment line (Bauer Performance Ltd, 2013).
Store Environment:
Bauer has 2 initiatives that take the experience level of they’re equipment to another level.
1. Customization on-line – If you go online to Bauer.com you will find that you can’t buy
products on-line. What you can do is pick a stick you like customize it to your liking, and
submit a form with what store you will pick it up at. Customization usually can take up to
a few weeks but it saves the customer time and improves the accessibility of allowing
customers to receive what they want for their sporting needs.
2. Own the Moment – is another customization initiative, Own The Moment was built on the
premise to help inform, inspire and advance every player’s game (Bauer, 2016). Each
"Own The Moment" hockey experience features experts to guide consumers in
customizing their equipment based on the athlete's level, and style of play. Also in each
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experience boasts an indoor rink where consumers can try the gear on ice, to ensure best
fit (Bauer, 2016).
Part E. Distribution Channel
Year 1
- “Advanced research and technology and material projects generate new product concept”
(Bauer Performance Ltd, 2013, p. 23)
Year 2
- “Reviewing and defining research needs and agenda” (Bauer Performance Ltd, 2013, p.
23)
- “Initial advanced project/product briefing” (Bauer Performance Ltd, 2013, p. 23)
- “Prototype development and design” (Bauer Performance Ltd, 2013, p. 23)
Year 3
- “Advanced materials sourcing” (Bauer Performance Ltd, 2013, p. 23)
- “Manufacturing method selected” (Bauer Performance Ltd, 2013, p. 23)
- “Initial testing and prototyping” (Bauer Performance Ltd, 2013, p. 23)
Year 4
- “Product – concept validation” (Bauer Performance Ltd, 2013, p. 23)
- “Comprehensive on-ice and lab testing” (Bauer Performance Ltd, 2013, p. 23)
- “Final product briefing” (Bauer Performance Ltd, 2013, p. 23)
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Year 5
- “Finalization of specifications” (Bauer Performance Ltd, 2013, p. 23)
- “Full size range commercialization” (Bauer Performance Ltd, 2013, p. 23)
- “Quality plans defined” (Bauer Performance Ltd, 2013, p. 23)
- “Production” (Bauer Performance Ltd, 2013, p. 23)
- “Commercial product launch” (Bauer Performance Ltd, 2013, p. 23)
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Works Cited
McCullough, B. (2010). The Hockey Stick Graph. Fraser Forum, 2(10), 30-32.
Montford, A.W. (2011). The Hockey Stick Illusion. Journal of the Royal Statistical Society,
174(4), 1183-1185.
Singer, M. (2009). Who wants to break the hockey-stick sales pattern in the supply chain?
Annals of Operations Research, 169, 131-147.
A.M. Lebrun, (2013). Social representations and brand positioning in the Sporting Goods
Market. European Sport Management Quarterly, Vol. 13, No. 3, 358-379.
(2016). Sports Equipment in North America. MarketLine Industry Profile, 1-35.
Sanches, L.M. (2014). Hockey Stick Phenomenon: Supply Chain Management Challenge
in Brazil. Brazilian Administration Review, 11(3) 264-283.
Goalie Buyer’s Guide. (2013). Bauer Rebuilt for a New Generation. 42.
Stick Buyer’s Guide. (2012). Bauer's High-level Performance Lineup. 35-36
Carlson, M. (2011). 2011 Stieles Feature Improved Balance and Durability. Hockey Products
Review.
Skate Buyer’s Guide. (2014). Bauer Revamps Skate Lines.
M. Carlson. (2014). Keeping Up with Skate Technology. Skate Buyer’s Guide.
N.L. Lough, W.A. Sutton. (2008). Sporting Goods. Sports Marketing Research Handbook.
Dr. S. Lee, Dr. H. Shin, Dr. J.J. Park, Dr. O.R. Kwon. A Brand Loyalty Model Utilizing Team
Identification and Customer Satisfaction in the Licensed Sports Product Industry, Licensed
Sports Product Industry. 5(1) 60-67
A. Subic, A. Mouritz, O. Troynikov. (2010). Sustainable design and environmental impact
of materials in sports products. Sports Technology. 2, No. 3–4, 67–79
Annual Information Form. (2013). Bauer Sports LTD. 1-60
