Ccm
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CCM is a hockey equipment company facing declining market share and brand reputation. To address these issues and relaunch its U+ Pro skate, CCM must devise a new strategy. The strategy involves reinvigorating brand enthusiasm among its most important customer segment, "The Boss", through an influencer marketing campaign emphasizing NHL endorsements. CCM will also focus on independent retailers and community involvement to rebuild its credibility. Financial projections estimate the new strategy could increase CCM's market share and expected returns by over $10 million compared to not implementing a new strategy.
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Ccm
- 1. CCM CASE MORGAN JOHNSON BEN TANG
- 2. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION CCM OPENS 1899 TACKABERRY SKATES INTRODUCED REEBOOK-CCM ENTERS ICE SKATES MARKET 1905 1937 2007
- 3. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION FACING A FAILED PRODUCT LAUNCH, A MATURE HOCKEY SKATE MARKET, AND DECLINING BRAND REPUTATION, CCM MUST DEVISE A STRATEGY TO REGAIN MARKET SHARE THESE PROBLEMS MUST BE ADDRESSED TO PREPARE FOR THE RELAUNCH OF THE U+ PRO CALLED U+² THE PROBLEM
- 4. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION REINVIGORATE BRAND ENTHUSIASM AMONG “THE BOSS” SEGMENT FOCUS ATTENTION ON INDEPENDENT RETAILERS OBJECTIVES
- 5. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION Industry Rivalry Substitutes Buyer Power Supplier power New Entrants Mature Market Strong competition Small number of brands Educated, high-volume buyers Strong substitutes Possible to switch High R&D costs Difficult to build brand credibility Differentiated high-performance products Changing consumer trends towards soccer
- 6. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION Brand ambassadors History of innovation Strong sales training Poor reputation and associations Low operating budget Expensive Opening for influencer strategy Possibility to differentiate Reaffirm technology Losing market share Mature market Previous failure
- 7. THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION Concerned about image, performance, and brand The Boss 12 - 18 Repeat customers Want to impress peers Influenced by NHL stars Expressive Performers Smart Performers Price Conscious Consumers SEGMENTATION
- 8. THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION Most prized segment Repeat customers Want to impress peers Influenced by NHL stars The Boss (12 – 18)
- 9. THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION 49% of market ($365.8 M) Concerned with image, performance, brand Not price sensitive Technology seeking Highly involved in purchase Expressive Performers (18 – 20)
- 10. THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION 45% of market ($229.4 M) Rational in considering value and performance On a budget Not sensitive to endorsements Smart Performers (12 – 17)
- 11. THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION 6% of market ($24.8 M) Price is paramount Price Conscious Consumers (12 – 18)
- 12. TARGETING
- 13. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION Sensitive to influencers Critical age to build brand loyalty Value design Tech savvy Value endorsements Highly involved consumers The Boss Expressive Performers
- 14. POSITIONING
- 15. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION THE CCM U+ PRO IS THE BEST FITTING SKATE ON THE MARKET THAT COMBINES A COMFORT, DESIGN, AND PERFORMANCE THAT STARS LIKE OVECHKIN NEED TO BE THE BEST
- 16. MARKETING MIX
- 17. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION PLACE Distribution by % CAN USA Pro Shops 5 3 Independent Retailers 24 47 Buying Groups 22 31 Mass Merchandise 28 0.3 General Sporting Goods 20 19 Distribution by % CAN USA Pro Shops 0 0 Independent Retailers 35 50 Buying Groups 35 30 Mass Merchandise 0 0 General Sporting Goods 30 20
- 18. WIDEST US MARKET REACH STRONG MARGINS, CREDIBILITY, AND KNOWLEDGE APPROPRIATE CHANNELS FOR THE BOSS AND EXPRESSIVE PERFORMER FOCUS ON INDEPENDENT RETAILERS
- 19. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION INFLUENCER STRATEGY EMPHASIS ON NHL ENDORSERS WITH OVECHKIN AT THE CENTER FOCUS ON INDIVIDUALITY, PERFORMANCE, AND STYLE TARGETS THE BOSS AND EXPRESSIVE PERFORMERS
- 20. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION COMMUNITY INVOLVEMENT BUILD CREDIBILITY AND ENCOURAGE PRODUCT TRIAL REINFORCE CREDIBILITY WITH PARENTS SPONSOR JUNIOR LEAGUES
- 21. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION PROMOTIONAL CAMPAIGN REBUILD BRAND CREDIBILITY CREATE ASSOCIATIONS OF TECHNOLOGY, RELIABLE, AND DESIGN
- 22. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION PROMOTION Allocation by % % Media & Internet 15 Production 12 Creative 9 Point of Purchase 10 Events & PR 20 Research 5 Seeding 2 Sales & Marketing 16 Miscellaneous 10 Allocation by % % Media & Internet 15 Production 15 Creative 15 Point of Purchase 5 Events & PR 20 Research 7 Seeding 2 Sales & Marketing 16 Miscellaneous 5
- 23. REACH THE BOSS, EXPRESSIVE PERFORMERS, AND THEIR PARENTS TO REBUILD BRAND REPUTATION REINVIGORATE RETAILER PULL AND PROVIDE SUPERIOR TRAINING ALIGN WITH INFLUENCERS AND REBRAND ALONG TECHNOLOGY, RELIABILITY, AND DESIGN PRODUCT STRATEGY
- 24. RETURN TO COMPANY LEGACY OF INNOVATION INCREASE INTERNATIONAL BRAND EQUITY REPOSITION BRAND IMAGE BRAND STRATEGY
- 25. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION FINANCIAL FORECAST Assumptions: Hockey skate market continues to decline at 0.8% rate CCM is able to gain a 2% market share as a result of new strategy If CCM implements new strategy for 2010: Total sales of skate market: $610 M CCM market share: 17% Expenditure: $1 M Total expected return = $102.7 M 610 ∗ 0.17 − 1 = 102.7 If CCM does not implement new strategy for 2010: Total sales of skate market: $610 M CCM market share: 15% Expenditure: $0 Total expected return = $91.5 M 610 ∗ 0.15 − 1 = 91.5
- 26. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION
- 27. COMPANY THE PROBLEM THE INDUSTRY THE ALTERNATIVESTHE COMPANY THE SOLUTION