Presentation on theme: "Trends Affecting the Downhill Ski Resort Industry Presented By: Ms. Angela Marie Gordon Undergraduate Commercial Recreation Student Michigan State University."— Presentation transcript:
Trends Affecting the Downhill Ski Resort Industry Presented By: Ms. Angela Marie Gordon Undergraduate Commercial Recreation Student Michigan State University The 2002 Annual Michigan Ski Industries Association Conference
Socio-Economic Trends n. n Trend #1:.The percentage of minorities and women that participate in downhill skiing is increasing on a continual basis. – –Resort Marketing departments need to expand their marketing plans to include marketing that targets the changing population dynamics of our society. – –Tapping untouched resources, such as the growing Hispanic and African American population, has the potential of increasing the customer sales volume by a significant amount. – –Change management needs to be implemented as a method to reorganize marketing efforts to include populations that are to presently targeted or even recognized as being potential ski resort customers.
Sources For Trend #1 n n National Tourism Foundation n n – –“African Americans are expected to comprise more than 13 percent of the US population by the year 2000 with over 35 million people. Moreover, this market base is growing at a rate of 10 percent per decade. It should come as no surprise then, that Black buying power overall is growing faster than that of the nation as a whole.” n n American Demographics: Ski Industry Looks Beyond Baby Boomers for Growth – –As evening falls on the baby-boomer era, the ski industry is looking to demographics to pump up its flat skier-day numbers in the future. Prime targets, said Brad Edmondson, editor of American Demographics magazine are children, women and ethnic minorities.
Sources - Cont’d n "The next five years are critical," Edmondson told attendees of the National Ski Areas Association Supershow. "They will be the last years when you can rely on baby boomers as your core market." n The Detroit News: Michigan Ski Resorts Put Women at the Top of the Hill n –Females now account for 40 percent of skiers and 25 percent of snowboarders, says the Snow Sports Association for Women.
Socio-Economic Trends n n Trend #2: As the “Baby Boomer” generation ages, they are becoming a significant segment of the recreation market because of their high disposable incomes and increased leisure time.
Socio-Economic Trends n n Trend #3: The downhill ski population remains to be composed of individuals that are well- educated with high incomes. –Provide an overview of product competitors, their strengths and weaknesses –Position each competitor’s product against new product
Lifestyle Trends n Trend #4:.Skiing continues to by a family-focused recreational sport with overnight stays and a focus on family recreational opportunities. –Statement that distinctly defines the product in its market and against its competition over time n Consumer promise –Statement summarizing the benefit of the product or service to the consumer
Lifestyle Trends n Trend #5: n Target consumer demographics
Packaging & Fulfillment n Product packaging –Discuss form-factor, pricing, look, strategy –Discuss fulfillment issues for items not shipped directly with product n COGs –Summarize Cost of Goods and high-level Bill of Materials
Launch Strategies n Launch plan –if product is being announced n Promotion budget –Supply back up material with detailed budget information for review
Public Relations n Strategy & execution –PR strategies –PR plan highlights –Have backup PR plan including editorial calendars, speaking engagements, conference schedules, etc.
Advertising n Strategy & execution –Overview of strategy –Overview of media & timing –Overview of ad spending
Other Promotion n Direct marketing –Overview of strategy, vehicles & timing –Overview of response targets, goals & budget n Third-party marketing –Co-marketing arrangements with other companies n Marketing programs –Other promotional programs
Pricing n Pricing –Summarize specific pricing or pricing strategies –Compare to similar products n Policies –Summarize policy relevant to understanding key pricing issues
Distribution n Distribution strategy n Channels of distribution –Summarize channels of distribution n Distribution by channel –Show plan of what percent share of distribution will be contributed by each channel -- a pie chart might be helpful
Vertical Markets/Segments n Vertical market opportunities –Discuss specific market segment opportunities –Address distribution strategies for those markets or segments –Address use of third-party partner role in distribution to vertical markets
International n International distribution –Address distribution strategies –Discuss issues specific to international distribution n International pricing strategy n Localization issues –Highlight requirements for local product variations
Success Metrics n First year goals n Additional year goals n Measures of success/failure n Requirements for success
Schedule n 18-month schedule highlights n Timing –Isolate timing dependencies critical to success