Diane Golovin



719455-1641475By: Deanna ReevesDiane Golovin Rebekah DullRemy Cloutier- StubbsAlyssa MyersMarketing 495/Marketing ManagementFinal ReportAugust 12th, 2018Table of ContentsExecutive Summary………………………………………………………………………….….4-6Vision and Mission Statement…………………………………………………………………..5-6MethodologyPrimary Research……………………………………………………………………..…...6Secondary Research…………………………………………………………………….6-7Situation AnalysisCompany Analysis………………………………………………………………………7-8SWOT Analysis…………………………………………………………………..……8-14Consumer/Social Forces……………………………………………………...14-15Competitive Forces……………....…………………………………………...15-18Economic Forces……………………………………………………………..19-21Political Forces………………....………………………………………….…21-22Legal and Regulatory Forces………………………………………………....22-23Technological Forces………………………………………………………....23-24Sociocultural Forces………………………………………………………….25-29The Customer Environment…………………………………………………………..29-34Current Marketing Objectives and Performance……………………………………..34-43Developing Competitive Advantages………………………………………………...43-45Developing a Strategic Focus………………………………………………………...45-48Current Marketing StrategyFleece…………………………………………………………………………………48-51Vests………………………………………………………………………...………..51-54Rain Jackets…………………………………………………………………………..54-57Convertible Pants……………………………………………………………………..57-60Snow Jackets………………………………………………………………………….60-63Marketing StrategyMarketing Goals and Objectives……………………………………………………..63-64Product Strategy……………………………………………………………………...64-69Pricing Strategy……………………………………………………………………....69-70Distribution/Supply Chain Strategy………………………………………………….70-71Integrated Marketing Communication Strategy……………………………...………71-73Marketing ImplementationStructural Issues………………………………………………………………………73-74Tactical Marketing Activities………………………………………………………...74-75Evaluation and ControlFormal Controls………………………………………………………………………75-81 Informal Controls…………………………………………………………………….81-83Marketing Audits……………………………………………………………………..83-85Implementation Schedule ……………..…………………………………………..…..…85Exit Strategy…...……………………………………………………………………………..85-87Works Cited…………………………………………………………………………………..88-97Figures………………………………………………………………………………………98-107Executive SummaryColumbia Sportswear (CS) is a nationwide company that has been making gear for over 75 years so people from all over the world can enjoy everything the outdoors has to offer. CS started as a family business based in Portland, Oregon and has grown into the global company it is today by “making no-nonsense apparel and footwear to keep you WARM, DRY, COOL, and PROTECTED no matter what” (A Tested Tough History, n.d.). Throughout CS’s growth from a small hat company in 1938 to a global firm in over 90 countries, they have stayed true to their approach of maintaining corporate responsibility company wide (Corporate, n.d.). Columbia’s strengths consist of having a progressive global strategy, being in the industry for over 75 years, having eco-friendly products, athleisure-wear, highly trained employees, competitive prices, and up-to-date technology. Their weaknesses include having a low physical presence in Europe (revealing a somewhat biased global strategy), implementing unnecessary middle management cutting costs, releasing clothing with too bright of colors, and not offering free return shipping. Despite those weaknesses, the company has amazing opportunities to expand globally, form new partnerships, release more athleisure wear, and improve its e-commerce operations. Common threats include counterfeit products, increasing competition, and identity issues outside the United States. While looking through all the research, we have chosen various marketing strategies and objectives based on Columbia Sportswear’s SWOT analysis and past performance of our marketing plan. Our suggested product strategies include releasing more gender-neutral colored clothing, expanding into Australia with its prAna line (along with introducing shoes and sunglasses to prAna), sponsoring BMX events and top-riders, and co-branding with “Dude Perfect” to attract millennials. It also includes simplifying products for its millennial target market, offering free shipping on returns and reinvigorating its Mountain Hardwear (MHW) brand by offering in-store tent set-up demos, and alpine classes. For the pricing strategy, we suggest lowering the prices on our less technology-advanced products, in order to offer more millennial-favored features. We also suggest giving the senior citizens an extra 20 percent off on every first Tuesday of every month. The company will fine tune their wholesale distribution process and online sales process so that they can educate the retailers of the products. CS will also be opening more stores in the underdeveloped markets in Europe. When it comes to integrated marketing communication strategies, the goal is to build brand awareness for MHW through marketing, advertising, sales promotions, social media, and blogs. We are also hoping to reposition MHW within the climbing community. Implementation of the new marketing strategy relies on MHW social media marketers, top leadership and middle management of the company. The structural issues that exist with the implementation of the marketing plan include cost cutting and budgeting from management. Before the plan is implemented informal controls must be put in place including additional research and development, human resources, financial resources and capital expenditure. Conducting the audits of this marketing plan are extensive and are conducted by multiple personnel within the company. Key audits to test the plan include employee surveys, online metrics such as engagement, pay-per-click results, and website traffic data. If CS decides to exit the existing markets, the strategy to do so involves licensing off products, technologies, and retail operations to third-parties. Selling its MHW brand is also an option. Vision Statement and Mission StatementVision Statement: “At Columbia Sportswear, we are committed to building a company of which we can all be proud-not only of the innovative products we create and the financial results we achieve, but the manner in which we achieve them. Whether it’s responsible sourcing, giving back to our communities, or reducing our environmental impact, we believe corporate responsibility is a companywide effort” (Corporate, n.d.). Mission Statement: “At Columbia Sportswear, our mission is to design and deliver authentic, outdoor, high-value products for active consumers of all ages” (Columbia, n.d.). MethodologyPrimary ResearchOur primary research consisted of insight provided by a team member who worked as a sales associate at a CS store for six months. This helped our team in determining the internal capabilities of the company (strengths and weaknesses) that would have been missed otherwise. Direct interaction with customers and careful observation revealed unsatisfied needs, which helped in the creation of the suggested marketing strategy. For our primary research, we also sent out emails and LinkedIn messages to three MHW employees in the marketing department: Lina Adams (Senior Marketing Manager - PR, Strategic Partnerships & Influencer Relations at MHW), Snow Burns (Vice President Of Global Marketing at MHW), and Ashlee Peterson (Marketing Coordinator at MHW). Our main question consisted of: “What are the current marketing objectives/goals of Mountain Hardwear and what specific actions are being taken to reposition Mountain Hardwear as a brand?” Secondary ResearchOur secondary research consisted of CS’s recent annual (full-year 2017) and quarterly reports, online articles, (for insight from direct employees to identify strengths and weaknesses), CS’s retail website (for reviews on products, also to identify strengths and weaknesses), and LinkedIn (for insight into executives and officers). The “Officers and Directors” page on CS’s website was also useful in identifying roles. We also accessed CS’s press releases to get a feel for recent promotions and endeavors. This helped us in identifying what current marketing actions were being taken. The marketing textbook “Strategic Marketing Problems” by Roger A. Kerin and Robert A. Peterson was also used for recognizing applicable strategies and other marketing concepts. Situation Analysis Company Analysis CS is a publicly traded company that designs authentic, high-quality outdoor products for active consumers of all different ages. They sell apparel, accessories, and equipment to be used during a wide variety of outdoor activities, such as “skiing, snowboarding, hiking, rock climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel” (Columbia Sportswear Company, 2017, p. 9). CS was once a privately owned company that became a Publicly owned company in March of 1998 (Columbia Sportswear Company, 2017). Columbia has earned a global reputation of innovation, quality and performance keeping outdoor enthusiasts in more than 100 countries, warm, dry, cool, and protected (Columbia Sportswear Company, 2017). Size of company- Net sales for the year of 2017 totaled $2.47 billion. The working capital CS had as of December 31, 2017 was $1.2 billion. At the end of 2017, it had 6,188 full-time equivalent employees. (Columbia Sportswear Company, 2017). Net income attributable to CS Company in 2017 totaled $105 million. Total assets as of December 31, 2017 equaled $2.2 billion. (Columbia Sportswear Company, 2017). SWOT AnalysisStrengths Year-round patented technologies, processes and designs create “distinctive competency”3,100 wholesale customers worldwide (vs. 129 retail stores) - eradicates expenses associated with brick-and mortar storesPhysical and online presence in the United States, Asia, Latin America, Africa, Middle East, Europe, and Canada (global strategy) Utilizes independent suppliers: specialists in chemistry, engineering, design and materials research and consumer feedback for product design and innovation Works closely with key wholesale customers to reinforce brands position as a leading outdoor innovatorBought out some of its major competitors: Sorel (2000) and Mountain Hardwear (2004). Provides wide variety of products through multi-branding Holistic lifecycle approach influencing social, environmental, ethical, and chemical factors Dedicated customer relationship management department, contributing to high brand equityOver 75 years in the industry (founded long before major competitors; longevity associated with quality)Strong free cash flows that allow for expansion into new projects60% of net sales comes in the second half of the year (approx. 90% of operating income)Does not exercise long-term contracts with its manufacturers (easy break-off) Automation within distribution facilities contributes to faster channel operations Staff is trained to be knowledgeable on all technologies (where and how to apply) Eco-friendly products: no PFCs intentionally used, dye-free fabric, recycled fabric, recycled trims (Outdry Eco Jacket)Responsible down standard certified (no live plucking, humane treatment, entire supplychain is audited by 3rd party certification body)First to earn the Skin Cancer Foundation seal of recommendation (Omni-Shade technology)Omni-Freeze Zero is the industry’s leading cooling technology Longevity of products - with proper care the protection/repellency will last for the life of the garmentReThreads program processes certain jackets to give them a second lifeTechnology features transfer to many products, streamlining the customer service experience Hires executives from top competitors like Nike and The North Face (competitive intelligence) Sponsors events - Olympics (international) & Timbers (local) to gain brand recognitionCreates successful limited-time partnerships (e.g. Star Wars & Paris-based Chloé).Strong social media presence and technological infrastructure within company websiteLocal artists (e.g. Sam Larson) design custom clothes linesColumbia Greater Rewards Program rewards purchases and drives repeat businessIn some instances, has lower price (vs. competitors)Retail stores have computers where customers can order unavailable products, without shipping feesMountain Hardwear’s expedition tents have summited more of the world’s top peaks than any other brandExecuting brand turnaround for Mountain Hardwear through new hirings Seen as both a sporting goods store and athleisure wear provider Generous discounts for employees and its “family and friends” (access to employee store)Provides temporary discounts for companies surrounding headquarters (e.g. Intel) Rejuvenated prAna’s sales and branding by emphasizing important lifestyle features to its target market Weaknesses Reliance on wholesale sales shifts the “branding.” Low direct-to-consumer business Low physical presence in Europe (Europe, the Middle East, and Africa collectively have 25 stores vs. 281 in Latin America & Asia Pacific)High seasonality within its business operations; 60% of net sales comes in the second half of the year (approx. 90% of operating income)Do not own or operate manufacturing facilities Lack of long-term contracts with manufacturers (no assurance of adequate or timely production capacity or favorable pricing). Vulnerable to price increasesOrders from wholesale customers are subject to cancellation (order-by-order basis) Patents vulnerable to being copied by competition and counterfeiting activities Automated distribution facilities may be impacted by computer virusesSales associates within wholesale customer companies not knowledgeable on product Retail facilities work with outdated technology (e.g. no chip readers, no system to track inventory of surrounding CS stores) Middle management strongly emphasizes cost cutting and budgeting, despite consistently improving earnings, which benefit executive management alone. Internal fragmentation.High turnover of retail workers reveals little room for growth, minimum wage with low commission percentage, favoritism, and overworking. No benefits to part-time workers Retail workers must buy and wear CS uniform despite low wages Occasional discrepancy between quality and price leads to customer dissatisfaction, low customer loyalty/repeat business, and bad word-of-mouthMountain Hardwear net sales fell by 2% in 2017 despite growth in mountain climbing activity in the U.S. (not capitalizing) Mountain Hardwear’s (retail) partners are not well known in the outdoor community Inability to connect with millennials in the U.S.Losing sales in Asia (brick-and-mortar stores and wholesale)Not seen as “authentic” sporting wear (seen more casual); contradicts brand name60-day return policy (vs. lifetime warranty as with UA)Discontinuing/alternating classics due to cost cuts result in loss of loyaltyDoes not offer free shipping for return purchases Product colors seem bright and unpractical Online product images and sizing details do not reflect true product appearanceCustomers complaints of product sleeves being too long on certain products Same product has differences in size between colorsCertain jackets do not have the right degree of warmth based on customer feedback Competitors have more aesthetically appealing websites Marketing teams and management do not consult front-line workers for advice Supporting liberals may cause loss of conservative customers OpportunitiesGrowth in e-commerce transactions (vs. brick-and-mortar stores)Influx in direct-to-consumer business transactionsElimination of tariffs for imported products from U.S. to AustraliaGrowing value in sports sponsorshipsAthletes’ growing appreciation of cotton materials that offer evaporation solutionsAthletes’ growing appreciation of thermal coolingAthletes’ growing appreciation of odor controlGrowth in hiking, yoga, paddle-boarding and BMX activitiesGrowing influence on millennial’s of Youtubers and bloggersClasses on how-to-use gear (life-saving tips)The aging of the U.S. population (providing comfort and warmth)Growing trend in apparel market emphasizing gender-neutral styles/featuresGrowing trend in apparel market emphasizing athleisure wearMillennials desire outdoor products that are less specialized and have more usesMillennials appreciate health and fitness that is more lighthearted, and involves friendsGrowth in lifestyle marketing (emphasizing health, wellness, and appreciation for nature)Scaling back on technology- “how much of this do we really need?”Millennials’ engagement with outdoors in simple ways (camping and hiking seen as form of social interaction versus solitary sport)Millennials love brands that emphasize diversity (in messaging and imaging)Millennials crave for gear that is both fun and functional (in design, packaging, etc.) ThreatsIdentity issue outside the U.petitors who have better price-points = loss of loyaltyCompetitors releasing technologically-advanced products Fake CS products overseas may damage brand name and product reputationOutdoor industry & fashion industry move at a fast paceRising pay level among workers (both U.S. and China) Political climate affects cost of goods. Import tariffs and international trade policyGravitation towards leisure-wear / activitiesWholesale and retail bankruptciesRecession and unemployment rates (less disposable income)Unstable environmental currency and import restrictionsExchange ratesLabor disputes (slowdowns)Change in environmental regulations and health/safetyHigher GDPR requirements make higher threat of breaking personal data handling lawsCyber security threats may cause less customer activity done online Hacking of personal data (of customers)Bad publicity (e.g. repression inside factories) may cause loss of salesUnemployment rates. With people losing its jobs, no money to afford new clothingCan lose customers who only buy American-made productsCan lose customers who do not support illegal immigrantsCustomer misconception that CS is only a winter apparel companyConsumers are spending more on “experiences” (e.g. travel) rather than items Consumer/Social Forces Columbia Sportswear is an industry leader in design, manufacture, and distribution of outdoor apparel, footwear, accessories, and equipment (Corporate, n.d.). CS currently serves a global market with (nearly) 7,000 employees, is working to increase its market-share across the world, and has strategically set its priorities for 2018 to drive global brand awareness and sales growth through increased, focused-demand creation investments. CS is growing rapidly, has opened 25 new stores in the last three years, and has expanded into Asia. According to the first quarter financial statement of 2018, out of the first quarter, 60% of CS sales are inside the U.S (Columbia Sportswear Company, 2018). In 2017, CS’s sales outside the U.S. increased 9% to $946.1 million, resulting in 38% of total revenue in 2017 (Columbia Financial Statement, 2017).Columbia Sportswear’s business is impacted by seasonal trends. Its products are marketed on a seasonal basis, and its sales are weighted toward the end of the year in the colder months. In 2017, 60% of CS net sales and about 90% of its operating income came from the second half of the year, which shows its reliance on the sales in the second half of the year (Columbia Financial Statement, 2017). The fact that its sales are skewed toward the fall and winter months proves that CS products mostly appeal to consumers living in locations that experience colder seasons (Columbia Financial Statement, 2017). As temperatures around the world drop during the fall and winter seasons, the demand for CS products increases, especially in the outerwear category. But with temperatures rising, this poses a challenge to CS, as 60% of its net sales were in the second half of the year, and most of its products are focused on outdoor wear (Columbia Financial Statement, 2017). Another thing that can affect CS sales is changes in consumer preferences and fashion trends. CS is working on expanding its products, including more categories in more geographic areas that are more “fashionable.” If CS fails to predict the newest fashion trends and customer preferences in a timely matter, CS could face lower sales, excess inventories, and lower profit margins (Columbia Financial Statement, 2017). Competitive Forces There are many competitors in Columbia’s market, including some that have similar or better products that can be sold at a better price point. There is also less customer loyalty since Columbia faces many competitors. Additionally, there is the threat of counterfeit products that are sold at a lower price. Columbia Sportswear’s largest competitor that designs, manufactures, and commercializes footwear, apparel, sports equipment and accessories is Nike. Nike’s revenue for 2017 was $34.4 Billion, up 6% from the year before (NIKE, Inc., 2017), while CS revenue was only $2.47 Billion, but its revenue was up 4% from the previous year (Columbia Sportswear Company, 2017). Nike’s target market is women in their 20s and 30s, young athletes, and runners with a motto of “Just Do It”; they purchase from a clothing company that claims it will make you a better athlete and expand human potential (Lutz, 2015). CS’s target market is geared more towards serving a broad population of consumers who enjoy a wide range of outdoor activities, including “skiers, snowboarders, mountain climbers, outdoor enthusiasts, hikers, hunting and fishing enthusiasts, endurance trail runners, golfers and outdoor inspired consumers” (Columbia Sportswear Company, 2017, p. 2). Columbia Sportswear identifies as more of an outdoorsy company that sells products that are environmental and “will keep people warm, dry, cool, and protected so that they can enjoy the outdoors longer” (Columbia Sportswear Company, 2017, p.2). Over the years, Nike has expanded from selling shoes, to now selling apparel, equipment, and accessories, a success in addressing the needs of more market segments. Both CS and Nike sell all of their products through a large number of outlets worldwide; Nike includes wholesalers, retailers, Nike’s online store, Nike branded stores, and Niketown retail outlets (Gregory, 2017), while CS includes wholesale, retail, CS own branded stores, CS outlets, and online sales (Columbia Sportswear Company, 2017, p. 4). For Nike to maintain a strong brand image it promotes its products through advertising, personal selling, direct marketing, sales promotions, and public relations (Gregory, 2017), whereas CS uses online advertising and social media, television and print publications, experiential events, and consumer-focused public relation efforts (Columbia Sportswear Company, 2017, p.6). When it comes to the pricing strategy of the marketing mix, both CS and Nike use the value-based pricing strategy when selling their products, in which they use customers’ perceptions about the value of its products and how much they are willing to pay (Gregory, 2017). Columbia Sportswear’s next competitor that will be analyzed is Under Armour (UA), which is an American company that manufactures footwear, sportswear, casual apparel, and accessories (Under Armour Inc., 2017). UA’s revenue was $5 Billion for 2017 (Under Armour Inc., 2017), while CS’s revenue was $2.47 Billion (Columbia Sportswear Company, 2017). Under Armour’s primary target market consists of athletes between the ages of 18 to 25 and they have “excelled at marketing to 18-to-35 year old age group,” while one of CS’s biggest challenges is connecting to the millennials in the U.S. (Gustafson, 2015). UA uses value-based pricing strategy just like CS and it is well known for its advanced quality (Under Armour Inc., 2017). UA is based in the United States, but has also expanded globally. They have UA brand and factory house stores, wholesale, and online shopping stores that ship to more than 200 countries, but they only have a limited number of stores worldwide (Under Armour Inc., 2017). UA promotes its products by personal selling, salespeople, billboards, TV, Youtube, online, magazines, and sponsorships (Z. Under, n.d.).North Face (NF) is the next competitor to analyze against CS. NF had revenues of $3.1 Billion in 2017 (Annual, 2017), vs. CS revenue of $2.47 Billion (Columbia Sportswear Company, 2017). NF is an American company that manufactures footwear, functional sportswear, sports equipment, and accessories (Annual, 2017) just like CS, and some people are more loyal to NF over CS even though CS is more affordable. This is partially because some people see NF products as a more authentic sporting wear, while CS is seen as more practical (Compare, n.d.). Another reason is because NF is more of a status symbol than CS, although they both have become status symbols over the years (Compare, n.d.). NF also has a lifetime warranty on its products, while CS has a 60-day return policy (Compare). NF’s target market includes men, women, and children of all ages who are athletes or modern day explorers (Press, n.d.). NF and CS both use value-based pricing strategy, as they are both known for their high quality products (Annual, 2017). It is are a company that is based in the United States but have expanded globally just like CS, however NF is seeing strong growth is Asia (Annual, 2017), while it is a difficult economic and competitive environment for CS (Columbia Sportswear Company, 2017, p. 28). NF sells its products on its online store, retail stores, and NF Outlet stores. NF used six percent of its total revenues to promote its products through social media, word of mouth, sponsoring events, TV, magazines, and radio (Annual, 2017, p. 6), while CS used five percent of its total net sales (Columbia Sportswear Company, 2017, p. 6). Patagonia has a much lower revenue than CS for 2017 at $209 Million (Finding, 2018). Patagonia is an American company that sells top-of-the-line outdoor clothing marketed as sustainable, which includes sports apparel, casual apparel, sports equipment, and accessories (Finding, 2018). The target market for Patagonia is environmentally-conscious and upscale consumers who like to be environmentally-friendly (Beginnings, n.d.); although it is a smaller company than CS, both are environmentally-conscious (Corporate, n.d.). Patagonia also has donated one percent of its earnings to preserve and restore the natural environment since 1985, awarding over 89 million to environmental causes (1%, n.d.). Although CS does not donate a percentage of its sales, this year the CEO, Tim Boyle, donated 1.5 million to the non-profit Oregon Harbor of Hope to build a new homeless shelter in its hometown, Portland, Oregon, to help address the homeless problem (Reaume, 2018). When it comes to Patagonia’s employees, they have great benefits for full time and part time workers (Patagonia, n.d.), whereas CS has competitive benefits for its full time employees but not its part time employees (Columbia Sportswear Employee, n.d.). Patagonia sells its products online, from a catalog, retail stores, and from independent Patagonia dealers. It promotes its products from word-of-mouth, sponsor sporting events, environmental fundraisers, and sponsors expeditions all over the world (Beginnings, n.d.). Economic ForcesWith the United States’ economic growth on track, this should increase customer spending. In May of 2018, the unemployment rate hit a new low, and growth in retail sales increased (Columbia Sportswear Company, 2018). Additionally, even recent tariff measures will have minimal impact on the U.S., but the increasing likelihood of a trade war with China is a downside (Columbia Sportswear Company 2017). The current economic strength is good news for CS; CS is typically very dependent on consumer discretionary spending and retail sales patterns. When there is economic uncertainty, sales are very unpredictable for CS and demand is down, resulting in sales goals not being reached or declining. As mentioned earlier, retail sales have increased within the past year (Columbia Sportswear Company, 2017), so this is good news for CS, as its consumers will have more discretionary income to spend on its products. Columbia Sportswear experienced challenges in the U.S. markets in 2017. CS has experienced the bankruptcies of its wholesale and retail customers, which resulted in a decline of sales, causing stores to shutdown (Columbia Sportswear Company, 2017). These conditions led to a sales decline in wholesale net sales in 2017, with nearly two-thirds of the decrease resulting from the impact of retail bankruptcies (Columbia Sportswear Company, 2017).Columbia Sportswear is also subject to risks while doing business internationally. These risks include the effects of foreign and domestic laws and regulations, foreign or domestic government fiscal and political crises, and political/economic disputes and sanctions (Columbia Sportswear Company, 2017). All of these factors can impact CS’s ability to sell its products in certain markets, or the ability to manufacture products. In South American markets, political and economic turmoil have resulted in currency and import restrictions, limiting CS’s ability to sell products in that region (Columbia Financial Statement 2017). Also, Russia consists of a large portion of CS’s non-U.S. sales and operating income, and significant changes in its political conditions have resulted in adverse effects on sales. Economic downturns also affect global markets. CS vendors, customers, and other members of its supply chain may be affected by these downturns. Economic Threats:The exchange rates and stability of country currency. In 2016, with the UK’s “Brexit,” there has been economic uncertainty and volatility in exchange rates. “Brexit” was a separation of the United Kingdom (UK) from the European Union (EU) in 2016, which has caused political and economic changes for the UK and other countries (Amadeo, 2018). The day after “Brexit” was implemented, the Dow fell 610.32 points, and currency markets were also in turmoil. The Euro also fell 2% to $1.11 (Amadeo, 2018). As exchange rates fall, it is not good for U.S. stock markets, as it makes American shares more expensive for foreign investors (Amadeo, 2018). “Brexit” slowed down business growth for companies that operate in Europe, and U.S. businesses are the most significant investors in Great Britain (The so-called Brexit has wide implications for the U.S. economy, 2016).Labor laws. Labor disputes have been reported at CS contract manufacturers. These disputes have resulted in work slowdowns, lockouts, strikes, and other disruptions. For example, work slowdowns and stoppages at the ports on the West coast of the U.S. have resulted in delays and increased costs. Labor disruptions may also result in canceled orders by customers, unexpected inventory, and reduced revenues and earnings. With new labor laws, minimum wage rates, and health and insurance costs have increased. CS may be unable to locate, attract, or retain exceptional employees, which will reduce its ability to sell products, and distribution may also be negatively impacted. Unemployment rate. As the unemployment rate increases or decreases, CS’s sales will be impacted. As unemployment rates go up, there will be less disposable income, a reduced availability of credit, increased savings rates, and consumers may not buy CS products. As unemployment rates go down, consumers have more money and more discretionary spending money, leading to more profits. Political ForcesThe political environment, especially in election years, can vastly impact a company that takes a specific stance. During the 2016 election, CS donated and publicly supported liberal causes, thus staying active within the scope of the political election (Brown, 2017). This strategy may only appeal to those who agree or who identify with progressive issues. For those consumers who care about a company for more than its products or services, this is alienation. Changes in employment laws, environmental regulations, and health and safety can negatively affect CS. Conversely, they can positively impact the company as well. Political figures can take a stand to raise the minimum wage, leaving companies such as CS at a loss with more labor expenses than they can handle. Cities like Los Angeles and Seattle, whose minimum wage rates are increasing, can lead to a decrease in presence for CS (Hitlzik, 2017). Those stores would be substantially more expensive to operate, hurting the company's profit margin (Ro, 2015).Changes in the political climate, such as the election of Donald Trump, sparks uncertainty in regard to CS trade policy. Donald Trump has declared America’s economic independence and has imposed tariffs on certain items coming into the United States, such as steel. Only time will tell what will have a tariff placed on it next. This could be a major concern for CS as they currently do not manufacture any clothing themselves, but rather import it from outside the United States (CSI Market, 2017).Tim Boyle took a political stance by addressing the issue of homelessness in Portland, Oregon. By announcing he wanted to move the headquarters due to safety concerns in the downtown area, he received criticism and backlash from the community who felt he was insensitive to the issue (Schmid, 2017). Homelessness is a current and ongoing issue, not only in the nation, but Portland specifically. The company’s public stance could affect marketing in Portland. Legal and Regulatory ForcesWith regard to legal and regulatory forces, CS noted the following in its 2017 annual report: “In the U.S., the current administration has publicly supported potential trade proposals, including import tariffs, modifications to international trade policy, and other changes that may affect U.S. trade relations with other countries, any of which may require us to significantly modify our current business practices or may otherwise materially and adversely affect our business” (Columbia Sportswear Company , 2017, p. 23). The General Data Protection Regulation was adopted by the European Union in 2018 and reinforces additional requirements for personal data handling. It calls for privacy and process enhancements, which require additional resources (Columbia Sportswear Company, 2017). In his blog, SuperOffice, Steven MacDonald stated that companies impacted by GDPR are required to build in privacy settings into its digital products and websites – and have them switched on by default. Companies also need to regularly conduct privacy impact assessments, strengthen the way they seek permission to use the data, document the ways they use personal data, and improve the way they communicate data breaches. In practice, this forces CS to have customers physically confirm that they want to be contacted. It also means that marketers at CS are responsible for confirming that users can easily access its data and remove consent for its use. In addition, GDPR requires CS to legally justify the processing of the personal data collected, meaning only necessary data should be collected (MacDonald, 2018). Violations of the regulations will result in significant penalties. On an international level, CS has been facing pressure in terms of labor costs: “[W]e have seen significant political pressure and legislative actions to increase the minimum wage rate in many of the jurisdictions within which our stores are located” (Columbia Sportswear Company, 2017 , p. 21). Giving in to these pressures may result in less profitable stores, store closings, write-downs of inventory, and an overall negative effect on financial conditions. In a report made by the Worker Rights Consortium, India’s largest clothing manufacturer, Shahi Exports, which supplies CS, was accused of brutally repressing attempts by workers to unionize and stifled an increase in the wages of workers. This repression included “physical beatings; death threats; gender, caste, and religion-based abuse; threats of mass termination; and the expulsion from the factory of 15 worker activists” (Bain, 2018, p. 2). Columbia Sportswear took action by temporarily suspending those accused of violence, while the investigation is ongoing, however no one was fired (Bain, 2018). Technological ForcesOverall, consumers have embraced the technical advances of shopping online with 79% of all consumers shopping online (Perez, 2016). With that much online shopping occurring, there are concerns of cyber security, with 77% of consumers reporting that they do not feel safe shopping online (Fiorletta, 2014). These concerns are with shopping online in general, not just with CS. According to , there were two billion records stolen or lost because of cyber attackers in 2017 (Graham, 2017). With that many records being stolen or lost and with the overwhelming percentage of consumers being concerned with cyber security, it is a threat that e-commerce businesses should take seriously. Another threat in the area of technology is rapidly-changing equipment technologies and consumer needs. CS has a Performance Innovation Team (PIT) lab based in Beaverton, Oregon that focuses exclusively on developing and bettering the existing technologies in apparel and other outdoor-related equipment (Reimers, 2016). Recently, CS debuted its patented OutDry Extreme Diamond Raincoat with new technology in breathability, durability, and waterproofing. Specifically with this jacket, the innovation team put an abrasion-resistant membrane on the outside of the jacket that repels moisture and rain, avoiding what is called “wetting out” in its industry (Reimers, 2016). It is necessary for CS to continue updating and creating new technological features in its existing and new products. Failing to do so could lead to the threat of the company becoming outdated and behind in the tech features of its products. Another threat for CS is the new and improved technology from competitors in the outdoor clothing market. Under Armour has been identified as a competitor in our competitive forces section and is a threat in regard to technology and innovation. UA has leading technologies in clothing, with innovative products such as “ISO-Chill” which works by dissipating the heat created from the body, creating a cooling effect (Technology | Under Armour, n.d.). The need for CS to stay up-to-date in innovation and technology against its many competitors is essential. Failing to do may can be seen as a threat to the company’s viability. Sociocultural Forces The USDA Forest Service Southern Research Station recently published a study revealing that Americans’ are choosing activities that involve viewing and photographing nature over “traditional” activities such as hunting and fishing. This same study goes on to say that “...not only are more Americans participating in outdoor recreation, [but] the number of times they participated in many of the outdoor activities surveyed has grown" (Cordell, 2012, p. 2). Also, motorized off-road and snow activities grew until about 2005, but ended the decade at about the same level as 2000. Along with hunting and fishing, backcountry activities stayed relatively flat and various forms of skiing, including snowboarding, declined during this period (Cordell, 2012). The Physical Activity Council and PHIT America recently reported that “4.6 million people participated in either sport climbing, bouldering or indoor climbing last year [2015], ranking climbing seventieth on the list of the top 111 activities in America” (More Climbers Than Ever, 2016, p. 2). The Gen Z population prefer outdoor sports and team sports, providing those selling climbing gear with a bright future, since Gen Z will shortly come to adulthood and financial independence (More Climbers Than Ever, 2016). The growth of the yoga lifestyle has been astonishing. A 2016 article states that “the number of Americans doing yoga has grown by over 50% in the last four years to over 36 million as of 2016, up from 20.4 million in 2012” (Linn, 2016, p. 1). Additionally, 75% of those actively participating in yoga also participate in sports or other fitness activities (Linn, 2016). From 2013-2016, trail running saw an 8% increase in the number of participants, yet stand-up paddling was the top outdoor activity for growth, increasing participation an average of 18%. In 2016, running, jogging and trail running remained the most popular outdoor activities, yet BMX biking saw the largest growth in participants from 2015 to 2016, at 15% growth. (Outdoor Recreation Participation: Topline Report 2017, 2017). The Los Angeles Times published an article in 2016 about the influx of minorities hiking and camping. To reflect this fact, “A recent survey of nearly 3,000 Americans and Canadians found that among the 1 million people who began camping for the first time last year, nearly 1 in 5 was black and 11% were Latino, nearly twice the rate for those groups in 2014” (Martin & Lien, 2016, p. 5). Marketing Mix How affected by changes Products (features, benefits, branding)CS has been very successful at seeing the growth of the yoga movement and reacting by branding its prAna line successfully. In its 2017 report, CS stated the following: “Over the past five years, sales at prAna have more than doubled, demonstrating the power of the brand’s message of sustainability and healthy, active, free-spirited lifestyles with consumers” (Columbia Sportswear Company, 2017, p. 4). Pricing (value) Excess inventory is sold at discounted prices through CS-owned outlet stores or third-party liquidation channels (Columbia Sportswear Company, 2017). Declining activities like skiing and snowboarding may reflect in larger amounts of discounted clothing in those categories. Distribution & supply chain (convenience, efficiency) Since more Americans are participating in outdoor activities, an expanded supply chain is required to fulfill all needs. Columbia Sportswear is enhancing its information systems and supply chain operations through Project CONNECT (Columbia Sportswear Company, 2017).Promotion (message content, delivery, feedback) In the fall of 2017, CS launched a new seasonal campaign titled “Columbia Warm,” with a focus on a partnership and outfitting deal with the UK National Parks system, which correlated with viewing and photographing nature (Columbia Sportswear Company, 2017). People (human resource issues) By understanding that minorities are gaining interest in outdoor activities and must have someone they can relate to within the company, CS is hiring employees without regard to race, color, national origin or ancestry. With regard to ethical and social responsibility issues, CS ensures that its prAna line of apparel and accessories are “designed and manufactured with an emphasis on sustainable materials and processes” (Columbia Sportswear Company, 2017, p. 8). This approach seems to have paid off, based on the following statement: “Over the past five years, sales at prAna have more than doubled, demonstrating the power of the brand’s message of sustainability and healthy, active, free-spirited lifestyles with consumers” (Columbia Sportswear Company, 2017, p. 4). The issue of sustainability is expected to grow as more and more concern is placed on protecting our environment. In its 2017 annual report, CS stated that about 64% of its products (excluding footwear) is manufactured in Vietnam and China (Columbia Sportswear Company, 2017). Since CS sources its products around the globe, it requires that these operations are handled in a legal, ethical, and fair manner. Regular monitoring is exercised by personnel from liaison offices to determine whether or not standards are being met.This affects customers in two ways: some customers desire to buy only from producers who manufacture in America, concerned about the social factor of available resources. Not only is this better for the environment, but it also provides jobs for future generations (serving as a “guaranteed job”), promotes American independence (by eliminating reliance on exports of other countries), and guarantees a high quality of goods (10 Reasons Why You Should Buy American-Made Products, 2016). That being said, a recent poll revealed that only 32% of respondents consider American- made products as a very important decision factor in the buying process. Price is a more important factor at 69% (Long, 2017). Referring back to the Shahi Exports example under Legal and Regulatory Forces, by keeping jobs in America we guarantee safe and fair working conditions. The issue of overseas manufacturing may change in the future as the Trump administration is fervently working at getting manufacturing jobs back to America to bolster the economy. Currently, CS is taking is taking on an ethical responsibility and protesting Trump’s “zero tolerance” policies targeted toward illegal immigrants. In an interview with The Oregonian, Tim Boyle stated that “International customers hesitate to visit the Northwest Portland company's headquarters for fear they could get stuck here in some immigration foul-up” (Manning, 2018, p. 9). He goes on to say that “[S]ome of his own IT employees who are in this country on a green card don't want to travel to China to work on a technology project due to the same concern” (Manning, 2018, p. 9). Nike is taking a similar stand. It is not clear how this issue is to change in the future, yet measures are being taken to soften the blows previously dealt to illegal immigrants. The Customer Environment Columbia Sportswear is one of the largest outdoor and active lifestyle apparel and footwear companies in the world. CS was founded in Portland, Oregon in 1938 and became global in over 90 countries. CS products have earned an international reputation for innovation, performance, and quality at a reasonable price (Columbia Sportswear Company, 2017, p. 2). The durability and functionality of its products make them ideal for serving a broad population of consumers who enjoy a wide range of outdoor activities, including “skiers, snowboarders, mountain climbers, outdoor enthusiasts, hikers, hunting and fishing enthusiasts, endurance trail runners, golfers and outdoor inspired consumers” (Columbia Sportswear Company, 2017, p.2). Consumers’ desire for CS products are affected by many different variables, including how popular the outdoor activity and active lifestyles are where they are sold, the changing design trends, seasonal weather, consumer adoption of performance technology, discretionary consumer shopping and spending patterns, and the competitor alternatives available (Columbia Sportswear Company, 2017, p. 3). CS apparel and footwear is most popularly known and used in winter sports, therefore sales are weighted heavily toward the third and fourth quarters (Columbia Sportswear Company, 2017, p. 3). The important players in the purchase process for CS products are the purchasers who focus on business-to-business, wholesalers and retailers, and the active, outdoor enthusiasts who buy their products from the retailer or through one of CS’s outlets or online (Columbia Sportswear Company, 2017, p. 4). The end product users are the outdoor enthusiasts. Purchase influencers, who influence the decision and make recommendations, include friends and family who love the products, CS employees, and retail employees (Columbia Sportswear Company, 2017, p. 4). Depending on what outdoor sport activity someone is interested in, CS has unique performance benefits to fulfill all its consumers’ needs. Whether the outdoor activity is in the hot sun or the cold snow, CS designs innovative and functional products. These products are designed to keep people warm, cool, dry, or and protected to ensure its consumers get to enjoy their activities longer and in greater comfort. Along with the technological performance, CS also relies heavily on the product design and fit so people can look good while doing the activities they enjoy (Columbia Sportswear Company, 2017, p. 4). Consumers who purchase CS products are usually buying them for a solution (Product Design, n.d.). These solutions could include performance benefits, features that the products have that others lack, style, brand name, functionality, durability, and price. CS products are used for all types of outdoor activities for the outdoor enthusiast or for everyday wear. Columbia Sportswear is an ethical company that makes every effort to respect and preserve natural resources. It’s goal is to limit its impact on the communities they touch, while sustaining the environment we all love (Corporate, n.d.). In efforts to protect clean water, they buy materials that are dyed without water and follow very strict regulations (Corporate, n.d.). CS not only takes care of our environment, but they also invest in charitable organizations around the world to help out people (Corporate, n.d.). Columbia Sportswear’s products are purchased through a variety of different distribution channels, wholesale channels, direct-to-consumer channels, independent international distributors, and licenses. Most of CS’s sales are through wholesale channels, which include small, independently-operated specialty outdoor and sporting goods stores, internet retailers, regional, national, and international sporting good chains, as well as large regional, national, and international department store chains (Columbia Sportswear Company, 2017, p.4). Its products are also sold on its own branded and outlet retail stores and online (e-commerce) stores (Columbia Sportswear Company, 2017, p.4). Columbia Sportswear started selling online in 2009 and since then e-commerce has changed the way most consumers shop. In 2016, CS projected that 90% of its business would be online, which is up 50% from 2015 (Tepper, 2017). Columbia Sportswear has a wide range of different purchase behaviors that vary throughout the year, such as its Professional Purchase Program (Professional, n.d.). This program allows certain professionals, including athletes, national ski patrol, outdoor guides, search and rescue members, certain people in the media, event management personnel, non-profits, governmental, and educational professionals to purchase CS products at a discounted price (Professional, n.d.). These all increase its sales depending on certain activities going on around the world, like competitions, filming, events, festivals, and outdoor activity functions (Professional, n.d.). A few other things can affect purchasing behavior: how popular the outdoor activity and active lifestyles are where they are sold, the changing design trends, seasonal weather, consumer adoption of performance technology, discretionary consumer shopping and spending patterns, and the competitor alternatives available (Columbia Sportswear Company, 2017, p. 3). Columbia Sportswear’s products have many advantages over the competitor’s products because CS products are very environmentally-friendly, its prices are lower than that of the leading competitors, they have very few to compete with, they have a reputation for innovation and performance (Company, n.d.), promoting high-performance by having professional-wear products at a lower price, and they have been around since 1938 (Company, n.d.). Brand loyalty can affect consumers’ behavior and can be a problem if they are loyal to another company and not yours. Brand loyalty can give consumers a sense of satisfaction, trust, and commitment. If customers are satisfied with their recent purchases, it can determine a purchase pattern for the future, and can enhance craving for the product. “Trust develops positive attitude towards the brand and commitment leads to loyalty towards the brand” (Usman, n.d.). Another aspect that affects customers’ purchase behaviors is when a product/brand becomes commodified. This makes that product/brand no longer unique and it is no longer distinguishable among the other brands. Consumers who purchase CS products buy from a U.S. direct-to-customer platform that includes more than 90 company-owned outlet stores, and distinct ecommerce sites for all four brands and branded stores in select markets (Columbia Sportswear Company, 2017). Due to the acceleration of consumer shopping preferences on ecommerce sites, Canada’s revenue fell 2% from bankruptcies and liquidations of some of the best wholesale customers. Columbia Sportswear ecommerce sites tell the consumer everything they need to know about the product brand, technology, and style stories (Columbia Sportswear Company, 2017). Columbia Sportswear has also “expanded into the leading online wholesale channels that are viewed as brand-enhancing venues by today’s consumers, where we can offer strong brand presentations and broad assortments, and where consumers enjoy outstanding service and fast delivery” (Columbia Sportswear Company, 2017). Potential customers might not purchase CS products because some of its products tend to be expensive. CS has more reasonably priced products than its leading rival, Nike, but they do have some jackets that can range from $100 to $1000 (Snow Jackets, 2018) which can be too expensive for some people. CS also has many competitors with similar products, but some potential customers may prefer another product or have brand loyalty toward another company (Better Business Bureau, 2015).Additionally, other competitors might have features in their products that potential customers prefer over CS. Columbia Sportswear is an outdoor apparel company, and other companies, such as Nike, Adidas, have sports-specific products and products that are endorsed by famous athletes. Potential customers might be looking for a basketball shoe, or a soccer cleat, and CS will not be able to fulfill this need. Current Marketing Objectives and PerformanceReview of current marketing goals and objectives The main goal of CS's marketing is to create innovative solutions to consumer needs (Columbia Sportswear Company, 2017, p. 4) within their outdoor industry. Not only do they want to create innovative products, but CS wants to communicate the benefits of these products. CS’s specifically states that their goal is to educate consumers by delivering “consistent messages about the performance benefits, features and styling of our products within each of our brands” (Columbia Sportswear Company, 2017, p. 12). Marketing objectives for the company include consumer-first initiatives, responding to consumer demand, and responding to industry trends. Consumer-first Initiatives: In 2017, CS created a “consumer-first initiative” with the goal of creating an enhanced customer experience (Columbia Sportswear Company, 2017, p. 5). This initiative is the creation and development of their online platform and IT systems infrastructure to to support consumers. The consumer-first initiatives directly supports the company's goal of creating innovative solutions to consumer needs (Columbia Sportswear Company, 2017, p. 5). With all IT systems communicating, this creates the consistent messaging for consumers across all marketing platforms and campaigns. Responding to Industry Trends: Responding to the industry trends is a CS marketing objective that supports the company's goals. CS anticipates and responds to trends in the market by creating new products while clearly communicating the features of them to consumers (Columbia Sportswear Company, 2017, p. 3). In marketing these products, CS creates persuasive and memorable marketing communications (Columbia Sportswear Company, 2017, p.3).Consumer Demand Responses: Not only does the company take into consideration the industry trends, but they also consider consumer preferences when developing new products (Columbia Sportswear Company, 2017, p.3). Their objective is to market these products created with the consumer preferences in mind, going back to the goal of educating consumers of the benefits of CS products. The company invests approximately 5% of their net sales into marketing programs to achieve their goals. (Columbia Sportswear Company, 2017, p. 6) The goals and objectives of CS are being achieved through four main methods, according to the 2017 Annual Report to Shareholders. Campaigns with CTA’s: The company reports that more of their marketing campaigns are including a ‘Call to Action’ for consumers. This encourages consumers to take action with the content they view, not just view it. By using CTA’s in their marketing efforts in regards to the performance, benefits and features of their products, this contributes to achieving the organizational goal. Campaign Projects: The company creates internal results based projects to drive revenue, generate saving and improve the effectiveness of their marketing efforts. By creating and running internal campaigns, the company can make strategic decisions for their marketing efforts. Relationships with Key Wholesalers: CS focusses on a relationship based strategy with their key wholesalers through “cooperative online, television, radio and print advertising campaigns”(Columbia Sportswear Company, 2017, p. 12). By having strong wholesale relationships they are able to reinforce consistent brand messages and information in regards to the performance of their products. Digital Marketing and Social Media: The company uses social media marketing to communicate with consumers to build strong relationships with them. Consumers are able to interact with the CS brands, (Columbia Sportswear Company, 2017, p. 12). The mission statement is the following: “at Columbia Sportswear, our mission is to design and deliver authentic, outdoor, high-value products for active consumers of all ages” (Columbia, n.d.). While their mission is to create outdoor products that have high-value, their marketing goal is to communicate with consumers about the benefits and features of these products. The mission and the goals of the company are consistent and align by being a consumer centric brand. The company creates products with the consumers preference in mind and communicates it with them through their marketing efforts (Columbia Sportswear Company, 2017, p.3)The mission of the organization and their marketing goals are consistent with both the external environment and the customer environment. Since CS’s products have a wide range of functionality, they are able to serve a range of customers with different needs. The main consumer market that they intend to educate and communicate through marketing efforts is the “active consumer” as described in their mission statement (Columbia, n.d.). The customers of CS are attracted to the design components of the products and the consumers want to look good while doing activities that they enjoy (Columbia Sportswear Company, 2017, p. 4). CS marketing goals and objectives are able to successfully communicate with the identified customer environment by educating the consumers on the product benefits and features. From the goal of education, consumers can make decisions on what technologies and designs they want that make them feel good while doing outdoor activities.While the external environment is rapidly changing due to being a performance based product, Columbia Sportswear appears to have continued to be consistent with creating the type of product mentioned in their mission statement, which are authentic, outdoor and high-value products (Columbia, n.d.). As discussed, in the section “Analysis of External Environment”, CS appears to be facing multiple threats, specifically in their competition. Competitors such as Under Armor are creating products high tech products for the outdoor market (Technology | Under Armour, n.d.). CS is able to be consistent in the external environment against competitors by sticking to their marketing goals and objectives of creating innovative products and communicating the benefits of them to the consumer.Review of current marketing strategy and performanceColumbia Sportswear produces outdoor products for active consumers. They sell apparel, accessories, and equipment to be used for outdoor activities, such as “snowboarding apparel, skiwear, ski-goggles, hunting and fishing clothing, sunglasses, gloves, hats and mittens” (Under Armour Marketing Mix, n.d.). The company’s CEO and Director is quoted saying that he wants the customers to “be proud to wear our products, and use our accessories and equipment anytime you step into the Greater Outdoors” (Corporate Responsibility – Explore Columbia, Columbia Sportswear, n.d.)The pricing of CS products is “having something for everyone.” Based on the products on its website, there are options of jackets from $40 to $300, proving the wide pricing strategy CS has (Men's Jackets - Windbreakers & Winter Coats | Columbia Sportswear, n.d.). This is likely due to the wide range of technological advances in CS products, as discussed previously. Basic products are on the lower end of the pricing scale, such as a women's t-shirt with CS's logo (cost $19.99) (Columbia, n.d.). Products with high-end technology built in are on the higher end of the pricing scale, such as a women’s performance-based fishing shirt that is light and has sun-shielding technology (cost $45.00) (Columbia, n.d.). Columbia Sportswear is based in the Pacific Northwest of the U.S., but sells its products globally in over 90 countries (Columbia Sportswear Marketing Mix, n.d.). Columbia’s products are purchased through different distribution channels, wholesale channels, direct-to-consumer channels, such as online, and independent international distributors (Columbia Sportswear Company, 2017, p.4). Promotions for CS products can be seen on a variety of platforms, such as television, online advertisements (Google Ads) and social media. A unique promotion activity that CS does is cause marketing. Through cause marketing they “able to increase awareness and raise support for important outdoor industry causes” (Cause Marketing - Product Initiatives | Columbia Sportswear, n.d.). Columbia Sportswear is both in the sports & outdoor and apparel industry. Both industries have grown in the last two years and are projected to continue growing through 2022 by up to $15 million (Statista Market Forecast, n.d). Since CS is in the largest market in the U.S., with annual retail-based sales exceeding $290 billion, the projections for companies in this market are likely to continue improving sales and profitability because of the high consumer demand. With regard to CS specifically, the company’s gross profit has increased every year with a positive net income since 2014, from $954,951 in 2014 to $1,159,962 in 2017 (Columbia Sportswear Company Stock, 2018). This is in comparison to competitors such as UA, which has a higher gross profit from years 2014-2017, but has a negative net income (Under Armour, Inc. Class C Stock, 2018). Review of current and anticipated organizational resourcesColumbia Sportswear is performing well financially now with year-over-year increases in net sales, with $2.5 million in 2017 (Columbia Sportswear Company, 2017, p. 26). The company offers stocks to raise funds as a contribution to the financial resources of the company and has steadily increased to nearly $300 per share in 2017 (Columbia Sportswear Company, 2017, p. 25). While the company appears to be performing well at the moment, it is subject to change due to the market conditions, volatile common stock prices, and control of common stock. The company has an investment portfolio that is not excluded from the effects of an economic downturn, if there was one (Columbia Sportswear Company, 2017, p. 12). If an economic downturn was to occur and if the company portfolio was not diversified properly, this could lead to a reduction in its financial resources. The company is also dependent on its common stock as part of its financial resources. The prices of the company’s common stock has fluctuated substantially over time, causing the price to be a concern as it pertains to the financial resources of the company. This change is due to multiple factors, such as “general market conditions, actions by institutional investors to rapidly accumulate or divest of a substantial number of our shares, fluctuations in financial results” etc. (Columbia Sportswear Company, 2017, p. 21). There are five related shareholders who own a majority of the common stock, allowing them to make decisions without the cooperation of other shareholders. If a sale of its stock were to occur, the price of its common stock could change negatively (Columbia Sportswear Company, 2017, p. 21).Columbia Sportswear employs thousands of people, with human resources being a major resource for them. In its 2017 Annual Report to Shareholders, CS identifies key personnel as being dependent on them. They spend time and resources attainting and training qualified professionals for management, designers, sales, and technology (Columbia Sportswear Company, 2017, p. 21). The level of resources they have in the human capacity is likely to change because of the competition the company faces in finding key personnel worldwide. If they are not able to attract and retain existing employees, this will not only hurt the human resources, but could have a negative effect on the financial resources of the company as well. Another reason the human resource levels could change is due to the labor laws and labor disputes. When employees are in disagreement about important issues such as pay, they could strike, causing a disruption in materials, inventory, or even canceled customer orders. In the end, this would affect the financial resources of CS. Columbia Sportswear is dependent on the resources of its key suppliers. Some materials used in products are purchased from a very limited number of sources; this means the relationship that they have with existing suppliers is important to the production of the products. In regard to production and getting the products to the customers, they are relying on its distribution facilities. Its primary distribution facilities are in the United States, France, and Canada and are highly automated (Columbia Sportswear Company, 2017, p. 19). Being automated opens the company to multiple risks, such as computer viruses, software and hardware issues, or power connection disruptions.Multiple resources that Columbia Sportswear relies to bring products to consumers on are interdependent and by the reduction in one resource, could affect the level of another resource (Columbia Sportswear Company, 2017, p. 12). To compensate for the potential changes in the level of resources available to the firm, (financial, capital, human and relationships with their key suppliers and distribution facilities) the company will need to leverage their strengths with their current resources. While the economy is stable and profitable, the company could invest in their resources so if/when the economy declines, they are prepared for it. For example, Columbia Sportswear could strengthen the relationship with their suppliers now so that in any type of economy the company will still receive the materials needed to create the products offered. Since current some of Columbia Sportswear’s distribution facilities are completely automated and are subject to a number of risks (Columbia Sportswear Company, 2017, p. 19), they could invest in updating the technology of their automated facilities to reduce the number of risks that could occur.Review of current and anticipated cultural and structural issuesColumbia Sportswear has recently experienced changes within the culture of the organization that could affect the marketing strategy and development, both positively and negatively (Max, 2018). With regard to customer orientation, CS has adapted to what the customers need and want. Previously, CS has tried to make the technology invisible, but the Chairman, Gert Boyle, says they now focus on making it obvious for consumers to see (Max, 2018). While focusing on the development of its products, they focus on four problems consumers face: “keeping people warm, dry, cool and protected from the sun” (Max, 2018). This is a positive for the company, aligning its product development and implementation to consumer needs.The organization is also focused on long-term planning, specifically for demand and inventory, as well as profitability. With the business model that currently exists, its biggest risk to capital is inventory (Columbia Sportswear Company, 2017 p. 7). The company develops and designs seasonal products nearly 12 months prior to orders for wholesalers and 18 months for consumers (Columbia Sportswear Company, 2017 p. 7). This demonstrates its commitment to long-term planning throughout the entire process of design, product creation and distribution. Columbia Sportswear even offers discounts to wholesalers who place orders at least 6 months in advance (Columbia Sportswear Company, 2017 p. 7). This strategy allows them to cut down on the risk of inventory management. This is positive for CS, giving them ample amounts of time to create a marketing strategy and implement it through the desired channels.The company’s culture with regard to employee satisfaction and morale overall seem to be high. From reviews on Glassdoor, the general consensus is that CS offers a great working environment and supportive management, with one review stating, “Great management, flexible hours, and very polite co-workers” (Columbia Sportswear Reviews. n.d.). One review also commented on the company’s “friends and family discount” and its volunteer program as a positive. Unfortunately, multiple reviews revolve around the lack of room for growth or advancement opportunities. This could have a negative effect on the company due to employees becoming burned out and not seeing themselves as part of the company in the future. The recent changes in the key executive positions could be seen as both positive and negative for the marketing strategy of the company. In 2017, CS announced its strategic realignment with top management in the company (ISPO, 2017). While Tim Boyle made the announcement with a positive undertone, stating, "I am confident that the leadership structure we are announcing today will enhance our ability to successfully execute on our strategic plan and to further drive sustainable, profitable growth” (ISPO, 2017), there could be concerns due to the unfilled positions. With these changes the organization could be lacking by not operating at full capacity with each board position filled. Another reason the changes could be seen as negative is because different people in positions could change the direction of the company’s marketing strategy, development, and implementation, depending on the power of the position to make decisions.Developing Competitive Advantages Columbia Sportswear is committed to sustainable and profitable growth, always improving, and upper management has many strategic focuses. Columbia Sportswear first wants to continue to drive brand awareness and sales growth through increased, focused demand creation investments (Columbia Financial Statement 2017). This includes improving technology and increasing global outreach (Columbia Financial Statement 2017). Columbia also wants to enhance consumer experience and digital capabilities in all its channels and geographies, expanding and improving local direct-to-consumer (DTC) business while prioritizing digital platforms (Columbia Financial Statement 2017). The market for outdoor and active lifestyle apparel, footwear, and equipment are very competitive. Columbia Sportswear’s main factors to match its strengths are brand strength, product innovation, design, functionality, durability, price, marketing efforts, and speed of product delivery (Columbia Financial Statement 2017). If CS follows its main strengths, this can create more opportunity for additional sales, and match customer needs. Columbia Sportswear should continue to research what customers are looking for in products, and differentiate its products from its competitors, to increase this competitive advantage. Columbia Sportswear should look to continue to grow in e-commerce transactions, versus sales in brick-and-mortar stores. E-commerce transactions are becoming increasingly popular, and with CS not having as many brick-and-mortar stores as other competitors, CS should look to selling online as an advantage. What sets CS apart from its competitors is its willingness to improve its products and improve its technology to match what its consumers are looking for. Columbia Sportswear currently offers technology under its Omni line of patents. The line features Omni-Tech, which is its fabric technology that allows a piece of clothing to be breathable but waterproof. Omni-Dry, is similar in that it is waterproof, but has four times the air passage capability than Omni-Tech. Columbia Sportswear is known for its high level of technology in its outdoor wear, and they need to use this to its advantage, and let people know about it. With CS already high brand awareness, CS uses its technology to its advantage, and informs its customers about it. As the growth in popular activities such as hiking, yoga, paddle-boarding, and outdoor activities keeps increasing, this presents CS with an opportunity to showcase its superior products. Athletes now have a growing appreciation of all the technologies that come in its apparel. Athletes are now searching for products that include more breathable, lighter, thermal clothing, and CS is one of the industry leaders of outdoor clothing; as these activities get more popular, then CS has the advantage of all of its outdoor technology versus other competitors. Columbia Sportswear can look to grow a larger market share in Europe. CS needs to take advantage of Europe having colder weather which is the season when they have higher profits. Also with CS high seasonality (60% of net sales come in the second half of the year) (Columbia Sportswear Company, 2017), CS can take this threat of lower sales in the warmer months, and try to increase sales in the first part of the year, to turn this into an opportunity. One major problem CS faces is the increase of counterfeit products. Columbia Sportswear does a lot of outsourcing, which keeps costs down, but also results in them being too dependent on outside producers (Columbia Sportswear Company, 2017). Outsourcing increases the risk of its products being counterfeited (Columbia Sportswear Company, 2017). Counterfeits can tarnish CS brand, and making sure its products are not counterfeited is an advantage to them (Columbia Sportswear Company, 2017). Columbia Sportswear has, in the past, discovered that some retailers in Asia are selling private label merchandise which is very similar to CS products (Columbia Sportswear Company, 2017).Developing a Strategic FocusColumbia Sportswear is focused on accelerating its market-share across its geographies by focusing on four strategic priorities: driving global brand awareness and sales growth through increased, focused demand creation investments, enhancing consumer experience and digital capabilities in all of our channels and geographies by expanding and improving global direct-to-consumer (DTC) operations with supporting processes and systems, and investing in its people and optimizing its organization across CS’s portfolio of brands (Columbia Sportswear Company, 2017 p. 11) . As CS is focused on its market share across geographies, this leads CS to invest in building its CS brand in China, with e-commerce, and expansion of direct and dealer-operated retail locations. In 2017, CS bought out the remaining 40% of its non-controlling interest in its China joint venture. This joint venture’s 2017 total net sales were about $168 million, and sales are expected to achieve low, double-digit percentage growth in 2018 (Columbia Sportswear Company, 2017 p. 11). Columbia Sportswear plans to use the existing management, staff, dealers, and distribution network that have already helped CS succeed in China.Additionally, CS is investing in its C1 initiative, which includes the Global Retail Platform and IT systems infrastructure to support the growth and continued development of its Omni Channel capabilities (Columbia Sportswear Company, 2018). Its plan with this initiative is the same as its strategic priorities: to help deliver a better consumer experience, and modernize and standardize its systems (Columbia Sportswear Company, 2018). Next, CS is investing in Experience First or “X1.” X1 is an initiative with its direct-to-consumer operations and is designed to enhance its e-commerce systems to take advantage of the changes in consumer browsing and purchasing behavior on mobile devices. This includes an upgrade of its e-commerce platforms to offer improved search, browsing, checkout, loyalty, and customer care experiences for mobile shoppers (Columbia Sportswear Company, 2018 p. 12). Another initiative CS is implementing in 2018, is Project CONNECT, which is a comprehensive assessment of the company’s operating model aimed at aligning its resources to accelerate the execution of its strategic priorities. Project CONNECT includes goals to increase revenue and improve marketing effectiveness (Columbia Sportswear Company, 2018). Columbia Sportswear is starting to shift its focus on becoming relevant and hip among younger consumers. It is implementing a new ‘Star Wars’ line of jackets which includes features such as Luke, Leia, and Han coats (1859 Oregon's Magazine, 2018). Additionally, CS has recently created new partnerships to connect with a new generation, in which online shopping is the way the shop most efficiently. It also sent Zac Efron, and his brother on a gear-testing adventure as a promotion, and created a $515 limited edition Sorel boot in the lineup of Chloé, a chic Paris based online retailer (1859 Oregon's Magazine, 2018). Lastly, CS also teamed up with Manchester United, one of England’s most storied soccer clubs, and became its official apparel sponsor (1859 Oregon's Magazine, 2018). Gert Boyle states, “We’re trying to differentiate ourselves from the big athletic brands that heavily rely on athletes to promote its products, but we certainly get the brand awareness from these unusual connections with popular brands and personalities” (1859 Oregon's Magazine, 2018).Columbia Sportswear also has innovative product initiatives through marketing campaigns, increasing awareness of important outdoor industry causes. First, in ‘I Wear Pink,’ CS and the National Breast Cancer Foundation partner to create an apparel collection which benefits the foundation and contributes funds to provide mammogram services for those in need (Cause Marketing - Product Initiatives | Columbia Sportswear, n.d.). Since 2007, this program has raised over $1 million for the National Breast Cancer Foundation (Cause Marketing - Product Initiatives | Columbia Sportswear, n.d.). CS is also committed to protecting and preserving America’s national parks. With the 100th anniversary of the National Park Service, CS is launching an innovative program with the National Park Foundation with the goal to educate everyone about all the great natural and cultural resources available in our areas (Cause Marketing - Product Initiatives | Columbia Sportswear, n.d.).Columbia Sportswear also partners with The Skin Cancer Foundation (SCF), to help educate consumers how to safely enjoy the outdoors. Columbia Sportswear’s Omni-shade line has earned the SCF’s Seal of Recommendation , which is awarded to sun protection products with a minimum of UPF 30 that meet its specific criteria (Cause Marketing - Product Initiatives | Columbia Sportswear, n.d.). It is the first international large apparel company to hold this seal (Cause Marketing - Product Initiatives | Columbia Sportswear, n.d.).Overall, CS is trying not to be like its competitors which partner with famous athletes. It plans to promote its products with everyday use (1859 Oregon's Magazine, 2018). They will promote its products with famous people, but not famous athletes because its products are not specifically designed for a certain team sport or sports athlete (1859 Oregon's Magazine, 2018).Current Market Strategy (Products) Product #1 - Columbia Fleece JacketPrimary Target Markets Consumers who wear the Columbia fleece jackets are middle aged men and women, usually in middle to upper class (Fleece, n.d.). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). Consumers who buy CS Fleece Jackets tend to have brand loyalty, are environmentally friendly, and value comfort while staying warm. The Columbia Fleece Jacket is lightweight and very versatile so it is a great jacket for anyone, active or not (Fleece, n.d.). In many of the reviews on the Columbia website, it seems to be that people who wear the Columbia Fleece tend to like to be comfortable while also staying warm doing whatever activity they love most. “Whether you’re an outdoorsman or woman, love the occasional weekend hike to clear your mind of the stresses from the week, or are just looking for a great jacket to wear around town” (Fleece, n.d.). Consumers who buy The CS Fleece Jacket usually buy it for the quality of the product, popularity, name brand, brand loyalty, and functionality (Fleece, n.d.). Unfulfilled Market NeedsThe current needs in the marketplace, especially in the United States that are not being met from the CS Fleece is the sizing. It shows from the reviews and from the sizing on the website that the fleece jackets only come in sizes x-small to x-large (Fleece, n.d.). In the U.S. we have approximately 160 Million people that are obese (The Vast, n.d.) and would not be able to fit into an x-large fleece. Market Trends Columbia Sportswear’s Fleece Jacket has been evolving over the years into a higher quality product, ranging from thinner-to-thicker fabric and has more options to choose from (Fleece, n.d.). The fleece has also become more expensive due to an array of competitors and a much higher demand from the consumers (Fleece, n.d.). Market GrowthThe market for fleece jackets has been growing over the recent years, but due to recent studies on polyester and acrylic fibers found in our oceans due to clothing made out of these fabrics, things might change. Patagonia did a recent study that showed, “During laundering, a single fleece jacket sheds as many as 250,000 synthetic fibers [and] [b]ased on an estimate of consumers across the world laundering 100,000 Patagonia jackets each year, the amount of fibers being released into public waterways is equivalent to the amount of plastic in up to 11,900 grocery bags” (O’Connor, 2016). This eventually ends up in our oceans and in our sea-life. This will take a turn for the worse, especially for all the environmentally conscious consumers. If CS does not start making a more sustainable clothing line, they could potentially lose customers. Current Marketing Mix Columbia Sportswear Fleece Jackets range from $12.90 to $75.00 (Fleece, n.d.). Columbia Sportswear uses a variety of different ways to promote its fleece jackets, including online advertising and social media, television and print publications, experiential events, and consumer focused public relation efforts (Columbia Sportswear Company, 2017, p.6). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). The United States has 3100 wholesalers, and direct-to-consumer consists of 105 outlets and 24 branded stores, plus, e-commerce websites in the U.S. LAAP has 250 wholesalers, 119 and 162 branded outlets, and shop-in-shop locations in Japan and Korea. With a joint venture with Swire, they operate 86 retail stores in China. In addition, CS and Swire have e-commerce websites in China with about 50 wholesalers that operate 750 retail locations (Columbia Sportswear Company, 2017, p. 5). EMEA has 3500 wholesalers with 26 independent international distributors that sell to over 750 wholesale customers, 24 outlets, and 1 branded retail store in Europe. They also have e-commerce websites in Austria, Belgium, Finland, France, Germany, Ireland, Italy, The Netherlands, Spain, and the United Kingdom (Columbia Sportswear Company, 2017, p. 6). Canada has 1000 wholesale customers, 6 outlets retail stores, and e-commerce (Columbia Sportswear Company, 2017, p. 6). Current STPConsumers who wear the Columbia fleece jacket are middle age men and women, usually in the middle to upper class (Fleece, n.d.). Columbia Sportswear’s target market for its fleece jackets are geared more toward serving a broad population of consumers who enjoy a wide range of outdoor activities, including skiing, snowboarding, mountain climbing, hiking, hunting and fishing, endurance trail running, golfing, and just hanging out (Columbia Sportswear Company, 2017, p.2). Columbia Sportswear’s positioning for its fleece jacket is a complete sportswear, everyday wear, and outerwear product. Product #2 - Columbia Sportswear VestsPrimary Target Markets Consumers who wear CS vests are middle aged men and women, usually in the middle to upper class (Vests, n.d.). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). Consumers who buy CS Vests tend to have brand loyalty, are environmentally friendly, and value comfort while keeping their core temperature warm. The CS vests are lightweight and can be a great addition to layering any outfit, whether one lives an active lifestyle or not (Vests, n.d.). The CS vests are attractive, comfortable, light, and very versatile. Consumers can wear them while meandering through the woods or commuting to work, while also retaining their core body heat (Vests, n.d.). Consumers who buy CS vests usually buy them for the quality of the product, popularity, name brand, brand loyalty, layering, and functionality (Vests, n.d.). Unfulfilled Market NeedsThe current needs in the marketplace, especially in the United States, that are not being met from the CS vest seems to be the sizing, from all the consumer reviews on the Columbia website (Vests, n.d.). With all of the different types of vests they make, some seem to run big, while others tend to run small. Also, when customers want to return items they are charged for return shipping (Vests, n.d.). Market Trends Columbia Sportswear vests and vests in general have become very popular over the years which makes them in high demand (Best, n.d.), especially with such high competition. Because vests are in high demand, CS started designing more of a variety of vests that range from fleece, responsibly sourced down-filled, synthetic insulated, with or without hoods, have pockets inside and out, are water resistant, have double zippers, and some that are made extra-long (Vests, n.d.). Some of these vests are made of very high quality which makes them more expensive, like CS’s new line of vest fillings to ensure the highest industry animal welfare guidelines. These include synthetic insulation and 100% responsibly-sourced down (Vests, n.d.). Additionally, CS has patented what they call a Light Rail Zipper that is used on many of its products and has eliminated the need for sewing tape, resulting in a complete removal of that particular material from the pockets in its product line (Corporate, n.d.). Market GrowthThe market for CS Vests has evolved over the years and now “they have a technically advanced product line with something for everyone” (Company, 2018). Whether one is outside in the woods, sitting around a campfire, hiking, fishing, hunting, doing indoor chores, or commuting to work, there is a vest for that consumer. Current Marketing Mix Columbia Sportswear Vests range from $14.98 to $130.00 (Vests, n.d.). Columbia Sportswear uses a variety of different ways to promote its vests, including online advertising and social media, television and print publications, experiential events, and consumer-focused public relation efforts (Columbia Sportswear Company, 2017, p.6). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017, the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). The United States has 3100 wholesalers, the direct-to-consumer consists of 105 outlets and 24 branded stores, plus, e-commerce websites in the U.S. LAAP has 250 wholesalers, 119 and 162 branded outlets, and shop-in-shop locations in Japan and Korea. With a joint venture with Swire, they operate 86 retail stores in China. In addition, CS and Swire have e-commerce websites in China with about 50 wholesalers that operate 750 retail locations (Columbia Sportswear Company, 2017, p. 5). EMEA has 3500 wholesalers with 26 independent international distributors that sell to over 750 wholesale customers, 24 outlet and 1 branded retail store in Europe. They also have e-commerce websites in Austria, Belgium, Finland, France, Germany, Ireland, Italy, The Netherlands, Spain, and the United Kingdom (Columbia Sportswear Company, 2017, p. 6). Canada has 1000 wholesale customers, 6 outlets retail, and e-commerce (Columbia Sportswear Company, 2017, p. 6). Current STPConsumers who wear Columbia vests are middle aged men and women, usually in the middle to upper class (Vests, n.d.). Columbia Sportswear’s target market for its vests are geared more towards serving a broad population of consumers who enjoy a wide range of outdoor activities, including skiing, snowboarding, mountain climbing, hiking, hunting and fishing, endurance trail running, household chores, and just hanging out (Columbia Sportswear Company, 2017, p.2). Columbia Sportswear’s positioning for its vests are a complete sportswear, everyday wear, and as an outerwear product. Product #3 - Columbia Sportswear Rain JacketsPrimary Target Markets Consumers who wear the CS Rain Jackets are middle age men and women, usually in the middle to upper class (Rainwear, n.d.). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017, the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). Consumers who buy CS Rain Jackets tend to have brand loyalty, are environmentally friendly, and want to stay warm and dry while doing its outdoor activities (Rainwear, n.d.). The CS Rain Jackets are made from high quality material making them waterproof and breathable, while also being lightweight and easily packable for when the sun comes out, making them ideal for an active lifestyle (Rainwear). The CS Rain Jackets are lightweight, comfortable, waterproof yet breathable, stylish, practical, and keep one warm. Consumers can wear them while doing just about anything, including walking, hiking, fishing, mountain climbing, snowshoeing, snowboarding, skiing, trail running, golfing, hunting, running errands, or just standing out in the rain (Rainwear, n.d.). Consumers who buy the CS Rain Jackets usually buy them for the quality of the product, popularity, name brand, brand loyalty, layering, and functionality (Rainwear, n.d.). Unfulfilled Market NeedsThe current needs in the marketplace, especially in the United States, that are not being met from the CS Rain Jackets, by reading all the customer reviews, seems to be an inside pocket to keep a cell phone and other valuables; also, the OutDry Hybrid Jacket does not seem to come with a hook to hang it up. (Rainwear, n.d.). The only other issue that was noticed from all the reviews was the sizing on most of the jackets seem to run a bit small. Also, when customers want to return an item, they are charged for return shipping (Rainwear, n.d.). Market Trends Rain jackets have always been very popular and in high demand with the more rainy climates and people wanting to stay warm and dry while doing activities. Columbia Sportswear has come up with new lines of rain jackets with increased technology to keep people dry, including CS’s signature line of Omni-Tech that is waterproof, breathable, guaranteed, and its OutDry Extreme with a membrane outside keeps dry inside (Rainwear). With the new technology it not only makes these jackets a higher quality product, but also comes with a higher price. Another technology that raises the price of CS’s rain jackets is it is trying to phase out Perflourinated Compounds (PFCs) from its products by introducing OutDry Extreme Eco (OutDry, n.d.). This creates a high performance, environmentally-friendly rain jacket with no PFCs because PFCs do not break down easily in the environment. Nearly every other major outdoor brand has not eliminated PFCs from its products because they have acknowledged that PFC-free alternatives do not provide the durability and performance customers want (OutDry, n.d.). Market GrowthThe market for CS Rain Jackets have evolved over the years and now they have Omni-Tech that is waterproof, breathable, and guaranteed. Plus, its OutDry Extreme has a membrane outside, keeping the garment dry inside (Rainwear, n.d.). Columbia Sportswear is also one of the only outdoor companies to have a high performance, environmentally-friendly rain jacket with no PFCs (OutDry, n.d.), which could get more people to be brand loyal to CS for moving forward to new technology and helping the environment. Current Marketing Mix Columbia Sportswear’s Rain Jackets range from $24.90 to $500.00 (Rainwear, n.d.). Columbia Sportswear uses a variety of different ways to promote its rain jackets, including online advertising and social media, television and print publications, experiential events, and consumer focused public relation efforts (Columbia Sportswear Company, 2017, p.6). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). The United States has 3100 wholesalers, the direct-to-consumer consists of 105 outlets and 24 branded stores, plus, e-commerce websites in the U.S. LAAP has 250 wholesalers, 119 and 162 branded outlets, and shop-in-shop locations in Japan and Korea. With a joint venture with Swire, they operate 86 retail stores in China. In addition, CS and Swire have e-commerce websites in China with about 50 wholesalers that operate 750 retail locations (Columbia Sportswear Company, 2017, p. 5). EMEA has 3500 wholesalers with 26 independent international distributors that sell to over 750 wholesale customers, 24 outlet and 1 branded retail store in Europe. They also have e-commerce websites in Austria, Belgium, Finland, France, Germany, Ireland, Italy, The Netherlands, Spain, and the United Kingdom (Columbia Sportswear Company, 2017, p. 6). Canada has 1000 wholesale customers, 6 outlets retail, and e-commerce (Columbia Sportswear Company, 2017, p. 6). Current STPConsumers who wear the Columbia Sportswear rain jackets are middle age men and women, usually in the middle to upper class (Rainwear, n.d.). Columbia Sportswear’s target market for its rain jackets are geared more towards serving a broad population of consumers who enjoy a wide range of outdoor activities, including skiing, snowboarding, mountain climbing, hiking, hunting and fishing, endurance trail running, walking, working outside, and camping (Columbia Sportswear Company, 2017, p.2). Columbia Sportswear’s positioning for its rain jackets are as a complete sportswear, everyday wear, and outerwear product. Product #4 - Columbia Sportswear Convertible PantsPrimary Target Markets Consumers who wear the CS Convertible Pants range from young adults to grown men and women, usually in the middle to upper class (Sites, n.d.). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). Consumers who buy CS Convertible Pants tend to have brand loyalty, are environmentally friendly, while also wanting something that is minimal and will keep them warm during the cold morning or night, and cool during the hot day (Sites, n.d.). Columbia Sportswear’s Convertible Pants are made from high quality Omni-Shade and Omni-Wick material making them durable, quick wicking pants that feature built in sun protection and plenty of storage; this makes them the perfect choice for active days in warm weather (Sites, n.d.).The CS Convertible Pants are lightweight, comfortable, provide sun protection, stain repellent, and provide zip-off legs that give them versatility in changing weather conditions which keep one comfortable and protected during active outdoor adventures of all kinds (Sites). Consumers can wear these pants while doing just about anything, including walking, hiking, fishing, mountain climbing, snowshoeing, trail running, golfing, hunting, or just doing things around the house (Sites, n.d.). Consumers who buy the CS Convertible Pants usually buy them for the quality of the product, popularity, name brand, brand loyalty, layering, and functionality (Sites, n.d.). Unfulfilled Market NeedsThe current needs in the marketplace, especially in the United States, that are not being met from the CS Convertible Pants, from reading all the consumer reviews, include the men’s lining on the inside being very uncomfortable and the fly not being long enough, so men have to pull them down to use the restroom. For the women’s convertible pants, they seem to run a bit small and the zipper around the thigh is too tight (Sites, n.d.). Market Trends Convertible pants have become more popular over the years and they have evolved into a much better pants/shorts with Omni-Shade and Omni-Wick and Omni-Shield material (Sites, n.d.). The Omni-Shade material has UPF 50 sun protection, Omni-Wick is a new technology that pulls moisture away from the skin, and Omni-Shield has advanced repellency to keep from getting stains (Sites, n.d.). Creating this new technology has not only made these pants a higher quality product, that is in higher demand, but also is more expensive (Sites, n.d.). Market GrowthThe market for CS Convertible Pants have evolved over the years and now they have Omni-Shade, Omni-Wick, and Omni-Shield material for its convertible pants, which have made them more desirable for consumers (Sites, n.d.). Current Marketing Mix Columbia Sportswear Convertible Pants range from $40.00 to $75.00 (Sites, n.d.). Columbia Sportswear uses a variety of different ways to promote its convertible pants, including online advertising and social media, television and print publications, experiential events, and consumer-focused public relations efforts (Columbia Sportswear Company, 2017, p.6). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). The United States has 3100 wholesalers, the direct-to-consumer consists of 105 outlets and 24 branded stores, plus, e-commerce websites in the U.S. LAAP has 250 wholesalers, 119 and 162 branded outlets, and shop-in-shop locations in Japan and Korea. With a joint venture with Swire, they operate 86 retail stores in China. In addition, CS and Swire have e-commerce websites in China with about 50 wholesalers that operate 750 retail locations (Columbia Sportswear Company, 2017, p. 5). EMEA has 3500 wholesalers with 26 independent international distributors that sell to over 750 wholesale customers, 24 outlet and 1 branded retail store in Europe. They also have e-commerce websites in Austria, Belgium, Finland, France, Germany, Ireland, Italy, The Netherlands, Spain, and the United Kingdom (Columbia Sportswear Company, 2017, p. 6). Canada has 1000 wholesale customers, 6 retail outlets, and e-commerce (Columbia Sportswear Company, 2017, p. 6). Current STPConsumers who wear the CS Convertible Pants range from young adults to grown men and women, usually in the middle to upper class (Sites, n.d.). Columbia Sportswear’s target market for its convertible pants are geared more towards serving a broad population of consumers who enjoy a wide range of outdoor activities, including mountain climbing, hiking, hunting and fishing, endurance trail running, walking, working outside, and camping (Columbia Sportswear Company, 2017, p.2). Columbia Sportswear’s positioning for its convertible pants areas a complete sportswear, everyday wear, and outerwear product. Product #5 - Columbia Sportswear Snow JacketsPrimary Target Markets Consumers who wear the CS Snow Jackets tend to be grown men and women, usually in the middle to upper class (Snow, n.d.). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). Consumers who buy CS Snow Jackets tend to have brand loyalty, are environmentally friendly, while also wanting something that will keep them warm during the cold morning or night, whether on the mountain or out for a stroll (Snow, n.d.). Most of CS Snow Jackets are made from high quality Omni-Tech to keep one dry and Omni-Heat to keep one warm, making these jackets ideal for winter sports and adventures (Snow, n.d).Columbia Sportswear Snow Jackets are lightweight, keep you dry with Omni-Tech, keep one warm with Omni-Heat, have lots of pockets inside and out, have underarm venting, are windproof, and have many adjustable features to fit just right (Snow, n.d). Plus, these jackets will keep anyone warm and comfortable doing winter sports and adventures they love, whether it is snowboarding/skiing down a mountain, snowshoeing around trails, building a snowman, or just walking around town (Snow, n.d.). Consumers who buy CS Snow Jackets usually buy them for the quality of the product, popularity, name brand, brand loyalty, layering, warmth in the winter, and functionality (Snow, n.d.). Unfulfilled Market NeedsThe current needs in the marketplace, especially in the United States, that are not being met from the CS Snow Jackets, include zippers being too hard to zip up on the men’s OutDry Ex Mogul Jacket, the women’s Powder Keg Jacket and Heavenly Long Hooded Jacket having a couple bad reviews saying they are too lightweight, and the women’s Bugaboo Jacket have had complaints that the sizing is off, they don’t like the velcro closure instead of snaps, and they have changed some other aspects that people loved about the jacket from previous years (Snow, n.d.). Market Trends Columbia Sportswear Snow Jackets have become much better over the years with their new lines of material, Omni-Heat and Omni-Tech (Snow, n.d.). The Omni-Heat material has thermal reflective warmth to keep people warmer in cold temperatures, while Omni-Tech is a new technology that is guaranteed to be waterproof and breathable (Snow, n.d.). Because of the increasing technology and competitors, snow jackets have been going up in price with the higher quality (Snow, n.d.). Market GrowthThe market for CS Snow Jackets has evolved over the years and now they have Omni-Heat and Omni-Tech material to keep its consumers warm and dry, which have made them more desirable for consumers who enjoy being outdoors in the winter months (Snow, n.d.). Current Marketing Mix Columbia Sportswear Snow Jackets range from $29.90 to $1000.00 (Snow, n.d.). Columbia Sportswear uses a variety of different ways to promote its snow jackets, including online advertising and social media, television and print publications, experiential events, and consumer focused public relation efforts (Columbia Sportswear Company, 2017, p.6). Columbia Sportswear “operates in four geographic segments: (1) The United States, (2) Latin America and Asia Pacific (“LAAP”), (3) Europe, Middle East and Africa (“EMEA”), and (4) Canada” (Columbia Sportswear Company, 2017, p. 5). In 2017 the United States accounted for 61.6% of net sales, LAAP accounted for 19.3%, EMEA accounted for 11.9%, and Canada accounted for 7.2% of net sales (Columbia Sportswear Company, 2017, p. 5). The United States has 3100 wholesalers, the direct-to-consumer consists of 105 outlets and 24 branded stores, plus, e-commerce websites in the U.S. LAAP has 250 wholesalers, 119 and 162 branded outlets, and shop-in-shop locations in Japan and Korea. With a joint venture with Swire, they operate 86 retail stores in China. In addition, CS and Swire have e-commerce websites in China with about 50 wholesalers that operate 750 retail locations (Columbia Sportswear Company, 2017, p. 5). EMEA has 3500 wholesalers with 26 independent international distributors that sell to over 750 wholesale customers, 24 outlets and 1 branded retail store in Europe. They also have e-commerce websites in Austria, Belgium, Finland, France, Germany, Ireland, Italy, The Netherlands, Spain, and the United Kingdom (Columbia Sportswear Company, 2017, p. 6). Canada has 1000 wholesale customers, 6 retail outlets, and e-commerce (Columbia Sportswear Company, 2017, p. 6). Current STPConsumers who wear the CS Convertible Pants range from little kids to grown men and women, usually in the middle to upper class (Snow, n.d.). Columbia Sportswear’s target market for its snow jackets are geared more towards serving a broad population of consumers who enjoy being outside during the cold winter months while enjoying a wide range of outdoor activities, such as skiing, snowboarding, snowshoeing, hiking, hunting, walking, working outside, and camping (Columbia Sportswear Company, 2017, p.2). Columbia Sportswear’s positioning for its snow jackets are a complete as sportswear, everyday wear, and outerwear product. Marketing StrategyMarketing Goals and Objectives Marketing Goal A: Respond to industry trends by emphasizing athleisure wear to customers.Objective A1: Sales of athleisure wear lines within CS’s offerings should increase by 15% in 2019. Person responsible: Ethan Pochman - Vice President, Global Brand Marketing for the Columbia Brand (Officers and Directors, n.d.) Marketing Goal B: Introduce flourishing prAna line in Australia by capitalizing on existing, calculated global strategy.Objective B1: Within five years of operation of prAna’s brick-and-mortar store should realize 20% of market share (of yoga clothes consumers in Australia). Person responsible: Nancy Dynan - Vice President, Marketing at prAna Living (Dynan, n.d.) Marketing Goal C: Build brand awareness and sales growth for MHW by emphasizing its expedition tents and by utilizing knowledge of newly hired executive Joe Vernachio (Columbia Sportswear Company Announces Appointment of Joe Vernachio as Mountain Hardwear Brand President, 2017). Objective C1: Sell 30% more tents within first two years of promotion. Person responsible: Lina Adams - Senior Marketing Manager, PR & Influencer Relations at MHW (Adams, n.d.). Objective C2: Overall sales for MHW should increase by 15% within those two years . Person responsible: Lina Adams (Adams, n.d.). Product StrategyAs the American culture changes and gravitates towards more gender-neutral colors (Pandey, 2016), one of our recommendations is to eradicate certain product offerings with bright (ex: neon green) unappealing shades and replace them with more soothing, practical colors. While some jackets get purchased primarily for their bright appearance (for example: joggers in rainy states appreciate bright blues or yellows, for safety reasons), women’s layering pieces should be more neutral and soft-toned. Working at CS has revealed many women complaining about the pink and the purple, asking for more manly tones like clay orange and forest green. Since consumer feedback for product design and innovation is an important strength of CS’s, the company should consider making these changes.Our second product strategy is related to the current lack of tariffs on imports from the U.S. to Australia (Australia-United States FTA, 2017). CS currently sells to Australian wholesalers its highly successful prAna line (Store Locator, n.d.). Since Australians are familiar with the high quality of clothes prAna produces, we believe CS should build its first international prAna retail store in Australia, thus improving its direct-to-consumer business (Store Locator, n.d.). This should be directly associated with the action of introducing shoes and sunglasses within the prAna line. Currently, prAna does not carry shoes nor sunglasses, and its clothing line does not include the technological features that CS’s relines on. Thus, the shoes should consist of flip-flops, sandals, and slip-on shoes.We believe that entering Australia and introducing certain types of shoes and sunglasses in the prAna brand should be complementary and exclusive to the country. Since Australia appreciates the lifestyle concepts of yoga, swimming and sustainability (Rustia, 2016), introducing these products for the first time within this country will serve as a form of “market testing” (Kerin, & Peterson, 2015). Our third product strategy is to capitalize on the growth of BMX biking (Outdoor Recreation Participation: Topline Report 2017, 2017), sports sponsorships (Kelly, 2018), and thermal cooling (Salfino, 2017), CS should sponsor several BMX biking events (USA BMX Winter Nationals and USA BMX Gator Nationals), while providing several professional BMX riders (Daniel Dhers and Steven Cisar) with gloves featuring Omni-Freeze technology. CS has previously partnered with Fishing League Worldwide (FLW and Columbia Sportswear Launch Extensive Partnership - FLW Fishing: Articles, 2017) and Major League Soccer (Columbia Sportswear and Major League Soccer Announce New Relationship, 2018). For FLW, CS is the official apparel outfitter and for MLS the partnership features co-branded outerwear and apparel for men, women and children. With BMX events, CS should follow its past experience with FLW and attempt to become the official outfitter for either an event(s) or rider(s).Our fourth product strategy is to attract millennials by co-branding with “Dude Perfect” (DP), a YouTube channel featuring sports and entertainment. According to our research, DP is ideally positioned to take advantage of the Millennial Generation’s love of YouTube (Bazilian, 2017), by promoting the brand to its 133 million subscribers (Dude Perfect Live Subscriber Count and Stats!, n.d.). The weaknesses of a lot of outdoor brands is that they fail to connect to millennials because outdoor brands still want to create a product with features for professional athletes (which is what worked for them before) (Elliott, 2018). Yet millennials want athleisure wear, functionality, and clothing that reflects their lifestyle goal that nature should be fun and enjoyed with friends (Lieber, 2015). The DP brand is in line with those goals. The description of DP’s channel says: “5 Best Friends and a Panda. If you like Sports + Comedy, come join the Dude Perfect team!”((Dude Perfect Live Subscriber Count and Stats!, n.d.). The clothing line should feature current summer products since DP mostly films in casual sportswear, like shorts, shirts, and baseball hats. It should have high-end, techy outerwear and low-end, no-fuss outerwear. The high-end outerwear is for die-hard fans who want exactly what DP members are wearing in the videos, while low-end outerwear (example: t-shirts with logos) should be for fans who desire the brand association. By co-branding with DP, CS communicates to millennials that “yes, it’s ok to enjoy sports in a down-to-earth, energetic fashion, without running a marathon or climbing Mount Everest. We’re here for you.”CS already has a strong social media presence, a leg-up in the athleisure-wear section, and an impressive list of partnerships (including MLS). Its global strategy will allow all those who view DP’s channel to jump online and check out their website. By co-branding with DP, CS will flatten out the high seasonality within its business and get closer to satisfying millennials. This partnership also provides CS with competitive advantage via variety in offerings, being portrayed as having an adaptive culture, and being seen as a company that values customer satisfaction. DP has not partnered with a clothing company as of yet and that ought to change. Similarly, DP has a strong social media presence with 18 million Facebook likes (Dude Perfect, n.d.), is always associated with sports and fun, and experienced its own share of partnerships, including Nerf and Whistle Sports Network (Case Studies, n.d.). The partnership makes sense because both CS and DP are highly involved in sports, one providing athletes (pro and non-pro) with comfort and style, the other portraying that comfort and style in videos. CS has for a long time created commercials with humor, starting from when previous CEO Gert Boyle would test products by forcing her son (current CEO) to walk through a car-wash (Gianatasio, 2015). Humor is no foreigner to the DP team.Now, the main reason why millennials are not attracted to CS (in comparison to the older generation) is not the product but the price. Observing from personal experience and then asking fellow colleagues, it is clear that around 75% of CS customers are older. They can afford the offering and they value warmth and comfort higher than their young counterparts. That being said, our fifth product strategy is to release more and more products that are plain, and do not include any sort of technological features. Technologically-advanced products may be a strength for the older population, yet it may play a role as more of a weakness for the younger generation (which is here to stay) (Roberts, 2015). By introducing more patterns and cultural references, and lowering the price on simple t-shirts, CS will attract more millennials into their stores.Our sixth product strategy has to do with customer service. Since e-commerce transactions are on the rise (Zaroban, 2018), CS should take advantage of this and instead of charging for returns, it should offer free shipping on returns. This does not mean all returns, but those whose value exceeds $75. A person may be willing to keep (or give away to a friend) a $25 shirt that didn’t fit or wasn’t the right color. Yet, if they purchase a $75+ vest or jacket, and have to pay an additional fee to ship it back, which they’re more likely to do since the shipping fee is less than the item price, customer loyalty may be lost.Our seventh, and final, product strategy is in relation to the tents that MHW offers. MHW has a very strong reputation within the alpine community, specifically in relation to its tents (Graepel, 2018). Several reviewers of the Trango 2 Tent, MHW’s most popular, classic tent offering, have complained that the tent is hard to set up (Trango? 2 Tent, 2018). One reviewer has also claimed that the tent manual has images that are backward from the actual tent (Trango? 2 Tent, 2018). Three things should be done to fix this. One, MHW’s sales associates should provide in-store demos on how to set up the tents. This is incredibly important because of the bad weather conditions of the alps. Alpine climbers who stay out in the cold too long face the risk of freezing to death. Two, MHW should offer classes, similar to what REI does currently (Outdoor Classes, Events & Outings, n.d.), for beginner and advanced alpine athletes. Offering classes is on the rise amongst outdoor brands (Lieber, 2015). And three, MHW’s team should review Trango 2 Tent’s manual and clarify instructions, updating images as required. Completing these three tasks will increase brand equity and drive repeat business throughout all of MHW’s offerings. Pricing StrategyOur two suggested pricing strategies are related to millennials and the older generation. In relation to millennials, we want to capitalize on the strength of having lower prices than CS’s competitors and lower those prices even more. Since millennials highly value functionality, and functionality no longer means advanced technology, but rather versatility, we want to suggest expanding the line of non-techy offerings that still have thoughtful features, without the premium price. This includes keeping the two-way zippers, the extra pockets, and attachable hoods. From personal observation, anything in the CS store that is priced below $100 is considered “cheap.” Jackets and other items that did not include any sort of technology would still be “expensive” for what they offer. Thus, we suggest reducing the “markup” to increase the amount of “traffic builders,” specifically for the purpose of millennials.An interesting statistic shows that “by 2030, all baby boomers will be older than age 65. This will expand the size of the older population so that 1 in every 5 residents will be retirement age” (US Census Bureau, 2018, p. 1). To take advantage of this, CS should give additional discounts to its most loyal customers – the baby boomers. It already gives 10% discounts to seniors who show its ID in store, yet that does not seem to be enough. Our suggestion is that CS adopt a pricing strategy where every first Tuesday of the month, seniors get an additional 20% off.Many of the senior customers associate with the brand due to its long history and because they feel a sense of comradery with the feisty Gert Boyle. Having shopped at CS for decades, many are familiar with the “classics” and the products that jump-started the company as a whole. The longevity of the products is what keeps them coming back for more, purchasing either for themselves or loved ones. That being said, such loyal customers are hard to find, and sure do deserve an extra discount once a month. Distribution/Supply Chain StrategyOur supply chain strategy for CS is to work on the online sales process. This is due to wholesale creating a barrier between the company and its customers. A full time team of approximately three people need to constantly check the website for accuracy and ensure all the links are active. This also means measuring what customers are clicking, where, and how long they are spending on each page. This data will be used to send out promotional items, reminders, and coupons to the potential customer. With regard to wholesale, there is a clear disconnect between CS and the retailer. Retailers simply place products on a shelf, but do not necessarily have the knowledge or training to inform customers of the products’ features or benefits. Going forward, we would like to place a booklet of information on more specialty products for the sales representative to read: winter jackets, the PFG line, and shoes/ hiking boots to start. To support the sales representative, CS should send its own representative to travel to the stores where its products are being sold. The sales representative would be there to answer any questions and further educate the employees about CS products. Having educated and knowledgeable sales staff adds value in the customer's mind. This will differentiate CS products from the competitors’. There is also a lack of stores and distribution centers in Europe. Setting up a distribution center in Europe can keep the cost of freight down while pushing into an undeveloped market. Because Europe has cold weather, this can be an opportunity for CS to spread its products in a new area. The connection to value CS places to its customers is in the form of convenience and customer support. Consumers can be assured that they will receive support from the company for the life of the product. Columbia Sportswear should continue to enhance its information systems through Project CONNECT. This system should be reevaluated periodically to ensure its performance is optimal. Challenging market conditions in the United States caused bankruptcy issues with Mountain Hardware wholesalers which, in turn, caused net sales to decline (Columbia Sportswear, 2017). During unfavorable market conditions, CS should not rely on wholesalers, and move away from wholesale and present its offerings through the CS store and online only. This can be coupled with coupons to certain products.Integrated Marketing Communication (Promotion) StrategyBecause Mountain Hardware brand’s net sales declined by 2% from the fiscal year 2016, the promotion strategies’ first priority is interrelated to Marketing Goal C: Build brand awareness and sales growth for MHW (Columbia Sportswear, 2017 pg.1). This will be achieved by content marketing, advertising, sales promotions, and social media. Content about Mountain Hardware’s best-selling item, the Ghost Whisperer Down Hooded Jacket, should be available for consumers to get more information about. This should include links to Youtuber and blogger reviews, opinions, and final remarks on the product. Repositioning Mountain Hardware in the mountain climbing community is paramount. Repositioning will occur through the IMC, by means of promotions at climbing gyms and hosting events. This will serve one primary purpose: to create brand awareness in the climbing community, which should be Mountain Hardwares priority. Content Marketing: sponsoring bloggers, such as Faith Briggs, who has blogged for CS in the past can reach potential customers far before the sales process has begun (Columbia Sportswear Company, 2017). Columbia Sportswear's news section on its website is outdated and does not have any current posts. Current posts should be added every week and include information to consumers about subjects such as hiking, mountain biking, and fishing, to name a few. This can inform consumers how to use the company's products while participating in their favorite activities. On YouTube, CS should have short how-to videos to showcase consumers using its products in different sports, and for different and new activities. For example, Columbia could create a short video where they teach outdoorists how to go bass fishing while wearing some of its UV blocking long sleeve shirts, talk about the technology of the shirt, and why it is vital to wear while fishing in the sun. Advertising: 2.34 Billion people throughout the world partake in some form of social media (Statista, pg.1). This presents CS with an opportunity to reach its target market for the Mountain Hardwear line, while maximizing its budget. Pay-per-click ads, placed on social media websites such as Youtube, Instagram, and Facebook are a cost effective way for Columbia to promote its rebranded Mountain Hardware line. Consumers would simply click on the advertisement and the link would take them directly to the product page, bypassing the home page. By doing so, consumers would be one step closer to purchasing the item, cutting out any excess frustration navigating the website to find the product (Siu, 2013).Publicity strategy: In the past, Tim Boyle donated to one political side, alienating the other. It is our recommendation the company refrain from taking political sides that do not pertain to the company's core values and mission. If insisted upon by the media, the company should consult a political advisor prior to making any public statements. Marketing Implementation Structural Issues Changes to the firm's structure are inevitable in order for the plan to be implemented. The Mountain Hardwear line needs to be reconfigured internally in order to be reborn. Positions that should be added include a Mountain Hardwear specific social media team. This team would be the major players who are engaging customers on a daily basis and answering any questions they may have. The team will also take feedback on the company's current offerings and suggestions about new offerings. Top leadership in the company cannot simply tell its employees what the plan is, and expect them to execute. They must be specific and patient with its employees. Ensuring every employee understands and has the tools to implement will be instrumental in the marketing plan implementation’s success. Employees must have the ability to be autonomous and to feel heard if they have a concern. Employee welfare should be the company’s number one focus, as employees who feel valued and taken care of will make or break a company. Structural issues in the company stem from a strong emphasis by middle management on cost cutting and budgeting. These activities benefit senior management, frustrate hourly employees, and foster low morale. This internal fragmentation causes a riff between employees and the company, distancing CS from accurately executing its mission. These issues, directly relate to the high turnover rate with hourly workers. Retail employees in the company are hired, and kept at a low wage with no benefits. In addition to low wages, employees are expected to purchase CS uniforms that are mandatory to wear.This cost cutting has led CS to chose not to adopt recent technology. Their retail stores do not have chip readers. They also do not have software to track inventory of nearby stores to help employees. These issues can severely cripple a company such as CS.These problems all lead to the problem of marketing teams and management do not solicit its ground employees for input. Because of that, there are a few prominent tactical marketing activities that need to be addressed. Tactical Marketing ActivitiesCS should first implement a set of benefits for its hourly employees that not only attracts prospective employees, but retains current employees as well. CS cannot move forward in its operations without taking care of its employees. Benefits should include scheduled and non scheduled raises to reward employees, and to keep wages in moving forward in proportion to the living wage, as well as refer a friend program, and giving its employees free and discounted CS gear. Programs such as the refer a friend program reward employees with a monetary amount while supplying the company with the same quality of workers. The company desperately needs and should encourage the input of its employees. There are several insights that can only be provided by front line employees. These employees should 455295541020be rewarded and feel valued by CS. Other tactical marketing activities are included in Exhibit 2 and follow the below structure:Evaluation and ControlFormal ControlsBefore the marketing plan can be implemented there are a few types of input controls that must be in place, including additional research and development, additional human resources, financial resources, and capital expenditures. Adding more research and development will give our company increased knowledge to develop, design, or enhance the company’s products, or technologies used on the products. Also, with creating new products it will lead to adding new features to some of the old favorite products. Additional human resources will be needed if we are going to be entering new markets internationally, therefore, we will be needing to hire more people to work at the new store locations. For any company, big or small, liquid assets/cash which is a financial resource, is needed to carry out the operations of the business and make it possible for the company to expand. The types of process controls that will be needed during the execution of the marketing plan will include a number of different controls, including employee evaluations/compensation system, management training, and internal communication activities. Employee evaluations are a great way to measure job performance and apply feedback, which recognizes quality performance so that you can compensate the employees accordingly. This not only benefits the employee, but the employer as well because great employees doing their job well can take the company higher. Another process control that is much needed is management training, this builds on their strengths to mentor and train their team, which in turn creates higher moral and motivation in all the employees making a great place to work. Also, another process that is needed is internal communications activities, not only will it bring everyone together as a team and make it so everyone is on the same page, but it will also motivate employees to work towards a common goal. The types of output controls that will be used to measure marketing performance:Overall performance standardsOverall Performance Standard for Objective A1: Sales volume of athleisure wear lines should represent 30% of CS’s entire offering by the end of 2019. This means that in every quarter of 2019, the sales volume of athleisure wear should increase by approximately 3.75% to reach our goal.Overall Performance Standard for Objective B1: 20% share of customers in the Australian yoga offering segment should be gained by the end of the fifth year. This means that every year, prAna should gain 4% of market share in that geographical area for that offering.Overall Performance Standard for Objective C1: Profitability should increase approximately by 30% at the end of the second year. Profitability should increase by 15% in the first year and an additional 15% in the second year.Overall Performance Standard for Objective C2: Sales volume should increase by 15% by the end of the second year. This means that sales volume should increase in all of MHW’s offering by approximately 7.5% in the first year and an additional 7.5% in the second year.Product performance standards1. For gender-neutral colored base layersCore product quality and supplemental quality must remain the same including features currently present in the “Women’s Midweight stretch Baselayer long sleeve shirt”: Omni-Hea thermal reflective, Omni-Wick, 4-way comfort stretch, Antimicrobial treatment, and ergonomic seaming (Women's Midweight Stretch Baselayer Long Sleeve Shirt, n.d.). Colors should not necessarily be “neutral” (ex: grey or brown) since women consider that to be their least favorite colors (Bear, 2018). Blue is a color that is loved by both men and women, even though it is mostly associated with the male gender (Bear, 2018). Quality of color (richness or faintness, whichever is required) should be judged through market testing.2. For introducing prAna footwear and sunglasses in AustraliaNew product innovation – Shoes should be made in a sustainable manner. Shoes made from faux leather are not acceptable, as they are not as environmentally-friendly as assumed by the public (Folk, 2017). Options for shoes will be cork (water resistant, durable and easily recyclable), waxed cotton (also waterproof and durable),tree bark leather (durable and comes in a unique pattern), and pinatex (derived from cellulose fibers that are extracted from pineapple leaves) (Folk, 2017). prAna should explore which of these are easily sourced by the company and what fits in best with the brands image.Similarly, sunglasses should follow lead in sustainability and be formed from environmentally-friendly material. This may include bamboo, cork, reclaimed wood or other hardwoods (9 Eco-Friendly Sunglasses You Can Wear This Summer & Beyond, n.d.). This makes the material organic, free of chemicals and renewable. Features may also include 100% UV protection, and scratch-resistant lenses (9 Eco-Friendly Sunglasses You Can Wear This Summer & Beyond, n.d.).3. For creating products for top BMX bikersProduct specification – Gloves should be similar to “PFG Freezer Zero Fingerless gloves” including the following features: Omni-Wick, Omni- Freeze (sweat-activated super cooling), and Omni-Shade (UPF 50 sun protection)( PFG Freezer Zero? Fingerless Gloves, n.d.). While this particular product is created for fishing purposes, a lot of reviewers have claimed using it for activities other than fishing, like kayaking. The “fingerless” portion may be sewed on specifically for the top riders, based on their preferences. Quality of logos and images/names on gloves should be vibrant and clearly visible (not smudged). 4. For creating product line with Dude PerfectBranding- Quality of products with the “DP” logo must be at the same high standard as the rest of CS’s offerings (both at the high-end and low-end of the price spectrum). The typical “dp” logo should be visible, with several offerings showcasing the logo in black on turquoise. CS could feature its logo on the left side of the shirt, and DP’s logo on the right, with YouTubeTV in big letters in the center below (with the YouTube logo). This is similar to what Adidas completed with MLS and YouTube partnership (MLS Shop, MLS Store, MLS Gear, Soccer Fan Gear, n.d.).5. For creating simplified offerings for millennialsPositioning – The positioning that CS is seeking from creating simplified offerings for millennials is in the following statement: “For millennial’s, CS is the judge-free zone among all outdoor brands because sports can be enjoyed anywhere, with anyone, as long as you’re comfortable” (Kerin & Peterson, 2015, p. 154). This communicates that you can wear CS’s clothes while skiing or camping in your backyard, with your sports team or your friends. A millennial can appreciate all the “Omni’s” the company has to offer without testing it out in extreme settings meant for test labs and hardcore athletes.6. For offering free shipping on returns – N/A7. For providing demos, alpine classes, and manual updates for MHWDemos must be accompanied with detailed instructions (answering all relevant questions) and completed from start to finish (from package to set-up tent, ready to use). Alpine classes must be lead by experienced alpine athletes and provide information that can not be easily found online (based on personal stories and potential troubles). Price performance standardsAdding more simple, “functional” items for millennialsCS should drive demand for its simple and functional offerings through marketing activities. This demand should be met with a proper balance of supply, which will limit quantity of products being sold in outlets, at a discounted price. The standard we propose during the execution of the marketing plan is to have 75% of items targeted at millennial’s to be sold at retail stores and online, and only 25% to be sold through outlets. After the marketing plan is executed, the standard should raise to 90% being sold at retail stores and online, and only 10% being sold through outlets. This will signify that the suggested product strategy and related pricing strategy are working satisfactorily.2. Offering additional discounts for seniors We believe that giving seniors 20% additional discounts every first Tuesday of the month will result in great price elasticity. We will consider the suggested pricing strategy successful if the “elastic demand” is greater than one (once the marketing plan is executed), signifying that a a sum of 30% off (going from a $35 fleece to a $24.50 fleece) will result in a large increase in the quantity purchased (purchasing two fleeces instead of one fleece)(Kerin & Peterson, 2015, p. 469). As a result, we expect our revenue to increase by .5%. Thus, if in 2017 the revenue was 2,466 M$, we would expect it to climb up to 2,589 M$ based on this pricing strategy alone (increasing by 123 M$ in a year) (Columbia Sportswear Company, 2017, p. 9). Fleeces serve as a good example for our price elasticity of demand concept because they have lots of substitutes (other relatively cheap offerings to stay warm in), uses (layering, wearing on its own, etc.), and they have a high ratio of price to income of the buyer (Kerin & Peterson, 2015, p. 470). (Note: Our reasoning behind introducing this pricing strategy was not because we assumed seniors were low-income, but do acknowledge that a decent portion of senior customers shopping at CS are bargain hunters.)Distribution Performance StandardsSales from wholesalers should increase after the first two months of implementation. This will be evaluated on a weekly and monthly basis after sales associates are properly trained and have had one month to get to know our products via the literature we’ve distributed to them. Sales increases must be at least 5% to continue the training program. This will be reevaluated if sales fall short after the first two months. Performance standards for establishing a presence in the European market include sales from the physical retail store. We expect sales to be heavy in the first few months of opening. This directly relates, and will be measured by our promotion strategies. IMC (promotion) performance standardsSales promotion reach, and ad impressions will be the basis for measuring success in the European market. The Australian sales team will have weekly, and monthly sales quotas that will be managed by a sales manager, and reported back to headquarters. We will also be distributing customer satisfactions surveys to measure brand awareness, and brand perception. The survey will also ask recipients if they would like to opt into CS weekly emails. Will also measure the growth of customers receiving emails since inception. All objectives should tie back to the mission and values. If a product or line is not performing well, which will be measured in sales, it should next be determined if it is vital to Columbia Sportswear’s success, and mission. Informal Controls Columbia Sportswear and its leadership staff are committed to building a strong and progressive human resource strategies to enhance their leadership capability, organizational development, and career opportunities for their employees. CS has 7,000 full and part-time global employees who are committed to sustaining their high-quality sales and operating income growth. CS also focus on their employees at any of their retail locations to give in-store presentations of their products. CS also has their products for sale at large retail stores such as Macy’s, Nordstroms, and others. At these retail locations, employees won’t be trained as well on CS products, and technologies that can properly sell the products to customers. Additionally, CS is committed to building a company in which they can be proud of. They like to give back to communities, or reducing environmental impact. CS has been driven by a commitment to the people and families who live, work and play in the communities in which they operate (Columbia Corporate Responsibility Report). CS values and promotes diversity in its workplace, and has a culture of honesty, respect and trust, and are committed to an environment where equal employment opportunities are available to all applicants.Columbia Sportswear has a Social Responsibility program called Standards of Manufacturing Practices (SMP) (Columbia Sport, "Social Responsibility | Columbia Sportswear"). In these practices, CS products are manufactured at independent factories around the world. CS values, and ethical and fair treatment of people, and are committed to people with who they partner with share these values (Columbia Sport, "Social Responsibility | Columbia Sportswear"). If employees are happy and feel valued, they will implement the marketing plan to the most of their capability. CS focuses on making their employees feel valued, so they are always satisfied and committed to their work (Columbia Sport, "Social Responsibility | Columbia Sportswear").As competitors become increasingly skilled at replicating products companies seek new ways to turn resources into a competitive advantage (Pant, 2001). Management consultants, have suggested several initiatives companies can implement to enhance employee knowledge, which also improves competitiveness (Pant, 2001). Activities like organizational learning, empowerment, and open book management all increase the decision making and strategic participation of employees. Laurie W. Pant states that sociobiologists explain the use of informal controls to encourage worker initiative as the natural process of adaptation to survive (Pant, 2001). For example, to meet or exceed competition, firms draw on employees knowledge of customers and initiative (Pant, 2001). Acquiring and retaining knowledgeable employees is imperative to businesses, and healthy firms increasingly rely on developing and maintaining a knowledge as a necessary condition of survival in their competitive marketplace (Pant, 2001). CS should continue to invest in developing, and retaining top employees as a necessary condition to survive in such a competitive marketplace. Marketing Audits The goals of Columbia Sportswear’s new marketing strategy revolve around building awareness, entering new markets, and improving internal communication. The goals and activities should be monitored appropriately per activity.Social components such as having bloggers and YouTubers review products (Ghost Whisperer Down Hooded Jacket) to increase awareness and product knowledge among the target market. The activities of pay-per-click, advertising, social media and sales promotion are to be monitored by Lina Adams, Senior Marketing Manager, PR & Influencer Relations at MHW. Specific time based measurements include, social engagement, organic website traffic growth, as well as conversion rates (Davis, July 2018). These measurements will effectively measure the number of engagements on the bloggers/Youtubers review videos, as well as the direct traffic from the videos to the website with the ultimate goal of converting a viewer into a customer.Entering new markets include both by methods of brick-and-mortar and e-commerce. Entering a new market is an entire company wide effort with multiple measurements and personnel responsible for conducting audits. Building a brick-and-mortar in Northern Europe includes measures of timeline and deadline completion, social engagement of awareness campaign of new market. The personnel responsible for conducting the audit of if the objectives are being met include Matthieu Schegg (Vice President, EMEA General Manager) and Patricia Higgins (Vice President, E-Commerce). While Matthieu Schegg would be conducting audits of the brick-and-mortar expansion, Patricia Higgins would be overseeing the creation of the website and implementation of summer products in Australia. Measurements include the timeline and deadlines for completion of the website and the campaigns targeted to the Australia market. Specific measurements include advertising results on social media and pay-per-click ads as well as website traffic sources and numbers.Improving internal communication focuses on employee morale and creating happier employees to have more satisfied customers. Measurements include sales numbers month to month, customer service calls resolved, and questionnaires answered by employees from before, during and after implementation of objectives. Questionnaires can include opinions from employees in regards to the meeting schedules and the team building exercises. These activities and the audits of them are to be overseen by Richelle Luther, the Senior Vice President and a Chief Human Resources Officer.If the above measurements and audits conducted by the appropriate personnel indicate that the marketing objectives will not be met, the marketing plan can be improved by the following:Corrective action can be taken with social campaigns: if audits of pay-per-click and advertising on social media provide insight to low engagement or low sales, many aspects can be changed. When advertising online, factors such as demographic, age, location, and interest can all be changed to better focus the campaign to reach the most consumers that could be interested in CS products. Corrective action can be taken with results from questionnaires: Based on the results from the audit from employees changes can be made. For example, if the results indicate that employees are not participating in the type of team building exercises implemented, the activities could be changed based on the feedback from them. Corrective action can be taken with timelines and project management: Aspects of the new market creation can be changed if the measurements are proving to show that the project is not moving forward in regards to the timeline. Timeline can be changed or the key management or project manager could be moved if results show an issue with personnel. Product selection changes: If audits indicate that consumers are not interested in the product choice (ex: summer clothes for Australia), CS can evaluate their product selection and implement the promotion of a new product/category strategy. The marketing plan can also be altered in whole or part. If marketing strategy audits reveal that the pricing strategy is incorrect according to the consumer market, it can be corrected. Changes in the pricing strategy could include an increase or decrease in price of products. Although our strategy is to resist lowering pricing on classics, maybe consumers will expect that the classic prices will decrease due to the advanced technologies and higher end products that Columbia Sportswear has available. In this case, it would be in the best interest of CS to lower the pricing of their classics, but continue using the other component of the marketing strategy as is. Since the distribution chain of channels is complex for CS, multiple issues could occur in the marketing strategy. If audits reveal that there is an issue with getting products from development, to retailers and ultimately to the customer, changes could include replacement of key distribution locations/providers or retailers.Implementation Schedule - Refer to Exhibit 1 Exit strategyColumbia Sportswear is actively engaged in licensing its products and technologies to third parties. The OutDry technology and The Pacific Trail brand (acquired in 2006) are two examples. Trademarks are also licensed in the form of apparel, footwear, accessories, equipment, and home products. In its 2017 annual report, CS claimed that “...from time to time we license the right to operate retail stores for our brands to third parties, primarily to our independent international distributors” (Columbia Sportswear Company, 2017, p. 21). As certain products become outdated, and not purchased, CS will begin to send these products to off-price retailers for a discounted price. For example, at Ross Dress For Less, an off-price retailer, they sell CS products for up to 30% off. Columbia’s exit strategy is to slowly license off its products, technologies, trademarks, and retail operations to third-parties, all the while aiming to develop products in perpetuity. CS should continue to license their products, as this gives CS an additional revenue, and more opportunities to sell additional units. In the second quarter of 2018 financial report, CS states that licensing has grown 35% since the second quarter of 2017, driven by increased net sales by existing licensing partners (Columbia Financial Statement, 2018). CS specifically the Mountain Hardwear line, could benefit from line simplification. While this strategy could hurt the company’s market share, CS could see a benefit from reduced offerings. This will allow CS to aim targeted marketing due to a smaller product line. Savings for the company stem from reduced inventories and longer production runs (Freeman and Spenner 2012). These savings come in the form of increased profits for the company as a whole, due to the elimination of the failing product line. Line simplification helps the company focus on improving its other products. If the MHW line continues to lose market share and becomes unprofitable, CS should consider total line divestment. This should only be considered if net sales continue to see a steady decline. Total line divestment can improve CS return on investment while simultaneously increasing its growth rate. CS should consider selling the line to another mountain climbing company, such as Black Diamond, who could benefit from adding a predominantly apparel company to its line up of climbing gear. -8255477520Figure 1Figure 2 ................
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