1. SUUNTO PROJECT “RAMPING UP SALES” June 2003 Vantaa, Finland IBD team: Marybeth Thomson Carlos Ramirez Youngsuk Ko Shin Hamanaka

2. TABLE OF CONTENTS Introduction Communication Strategy Distribution Strategy Marketing Infrastructure Programs and Tactics Future Considerations Appendix

3. INTRODUCTION

4. IN ORDER TO ACHIEVE DESIRED GROWTH, SUUNTO REALIZES THE IMPORTANCE OF TRANSITIONING FROM A STRONG R&D COMPANY TO A GLOBAL DESIRED SPORT BRAND COMPANY... THE MOST DESIRED SPORT BRAND Suunto Achievements Top technology company Extremely knowledgeable R&D group Professional and ambitious team on board Well establish brand name in the diving category Successful introduction of products Diversification into new markets Goals and Challenges Revenue growth expectations and pressure as the future of Amer Group Market development for “sport instruments” Brand awareness development with limited marketing resources in Finland or abroad Balance between R&D and marketing skills to surpass the transition phase Recent Progress Already recognized as the leading provider of diving instruments Gaining meaningful traction among outdoor sports enthusiasts Planned completion of product matrix for all new markets All progress supported by the launch of suuntosports.com and an improved customer service infrastructure

5. ... AND TO SUCCESSFULLY FACILITATE THIS SHIFT, THE COMPANY MUST UNDERSTAND THE END CUSTOMER WHEN DEVELOPING MARKETING STRATEGIES Consumer Consumer needs as the driver New Product Development Distribution Decisions Communication Strategies Pricing Decisions R&D Customer Feedback Distribution Feedback Market Research & Analysis Suunto’s Goals and Strategy

6. SPECIFICALLY, THE COMPANY SHOULD IMPLEMENT A CONSUMER BEHAVIOR MODEL CREATED AROUND HOW CUSTOMERS THINK, FEEL AND BEHAVE TO GUIDE DECISIONS PERTAINING TO PRODUCT, MESSAGE, PLACEMENT AND PRICING Feel Think Behave Brand Awareness Product Perceptions Purchasing Decisions Consumer Behavior Building Consumer Behavior Profile

7. OUR TEAM DEVELOPED THE PRELIMINARY MODEL USING INFORMATION AVAILABLE WITHIN THE COMPANY AND FROM RETAILERS IN THE U.S. WITH THE OBJECTIVE OF UNDERSTANDING GENERAL CONSUMER BEHAVIOR CHARACTERISTICS THAT SHOULD BE CONSIDERED WHEN ESTABLISHING COMMUNICATION AND DISTRIBUTION PROGRAMS Feel Think Behave Brand Awareness Product Perceptions Purchasing Decisions Store buyers interviews Store visits Suunto Product managers Suunto survey Consumer Behavior Input Building Consumer Behavior Profile Communication Programs Distribution Programs SUUNTO MUST INTERNALIZE THIS PROCESS AND CONTINUOUSLY DEFINE THE CONSUMER BEHAVIOR PROFILE Microsoft Research Answers to who, why, how and where from the customer perspective

8. Need RecognitionSearch for AlternativesEvaluation of AlternativesPurchase of the ProductUse of the Product Think Feel Behave Potential Customer Active participant Median age of 30 Male dominated High average income High education levelTechnology proficient Part of a community Influenced by heroes Trend setter Why do consumers desire a product? Performance improvement; Performance verification; Direction; Safety; Image; Status How do consumers develop knowledge of product? User advocates; Role model influence; Independent research; Retail salespersons; Advertising How do consumers judges benefit of product? Better game; Reliability; Quality; Ease of use; Offers features beyond “needs”; Style; Relative value Where do consumers go to buy the product? Consumers research the product and then go to the nearest store to get the final “push” to back up their decision of buying the product BY UNDERSTANDING WHO IS SUUNTO’s POTENTIAL CUSTOMER, WHY HE BUYS, HOW HE SEARCHES FOR INFORMATION AND WHERE HE BUYS, SUUNTO WILL BE IN A BETTER POSITION TO DESIGN MARKETING STRATEGIES THAT WILL ULTIMATELY HELP THE COMPANY TO INCREASE SALES

9. COMMUNICATION STRATEGY

10. SALES UNDERSTANDING SUUNTO’S CURRENT POSITION IN THE MARKET DEVELOPMENT CYCLE IS IMPORTANT TO DESIGNING AN APPROPRIATE COMMUNICATION STRATEGY Focus on communicating ability of product to differentiate or improve current performance. Focus on stimulating solid references and reviews from the Early Adopters Focus on creating brand image and on the communication of proven product results Market Development Cycle Early AdoptersEarly MajorityLate AdoptersLaggards

11. Mass media advertising Guerilla Marketing - + Brand Awareness Advertising Spending + - Procter&Gamble Spalding Reebok Puma Speedo MANY COMPANIES HAVE ACHIEVED STRONG BRAND AWARENESS WITHOUT MASSIVE ADVERTISING INVESTMENT, INSTEAD FOCUSING ON BUILDING BRANDS THROUGH GUERILLA MARKETING TACTICS Brand Awareness vs. Ad Spending (Illustrative) Illustrative

12. PUMA AND SPEEDO, BOTH WELL KNOWN SPORTING BRANDS, ARE GREAT EXAMPLES OF EFFECTIVE GUERILLA MARKETING, FOCUSING ON TARGETING CORE CONSUMERS THROUGH SELECTIVE COMMUNICATION METHODS (1)Sports Industry Brand and Athlete Awareness Study (2002) Source:Sporting Goods Business Ranked 4th in brand awareness (1), spending less than $3M on advertising (2001) Conveying its message using a "seed-and-spread" strategy Works with a product placement agency to get its collections on musicians/actors Has non-financial relationships with artists Maintains selective distribution in hip stores e.g., Barneys, Urban Outfitters Successfully created a unique brand image on the street "We try to build as an alternative, anti-establishment brand" - Global Director of Brand Management "There's hipness to Puma right now, and that's why they only have to spend $3 million on advertising" - President and CEO of TSE Sports and Entertainment Ranked 9th in brand awareness (1), spending $2M on marketing in 2001 Focuses on PR and relationship with targeted user groups Signs top swimmers as models/endorsers to get exposure (e.g., Olympics) 75 Speedo stores help increase brand awareness Maintains relationship with over 800 swim clubs in US Closely monitors and understands the consumer needs "It's not just putting money behind ads, but finding new opportunities and things that will hit your core market, and keeping you finger on the pulse of everything." - President and CEO of TSE Sports and Entertainment

13. IN ADDITION TO TRADITIONAL DIRECT ADVERTISING TO POTENTIAL CUSTOMERS, SUUNTO’S MARKETING TACTICS SHOULD AIM TO DEVELOP A POSITIVE COMMUNICATION LOOP AMONG USERS AND POTENTIAL CUSTOMERS BY CREATING ADVOCATES FOR ITS PRODUCTS 3. User Conversion Focuses on the more traditional advertisement methods as well as on alternative methods to reach out to the target customer base. 2. Advocate Outreach Focuses on building the opportunity for advocates to reach out and influence potential buyers 1. Post Purchase Focuses on the conversion of an existing Suunto user into an advocate who has positive experience with Suunto products and/or services POTENTIAL CUSTOMER 1 1 2 2 3 3 USER ADVOCATE

14. SUUNTO HAS BEEN ACTIVELY PURSUING VARIOUS PROMOTIONAL ACTIVITIES IN ALL STAGES OF THE LOOP, HOWEVER SUUNTO MAY COORDINATE THE ACTIVITIES BETTER TO ACHIEVE GREATER EFFICIENCY USER ADVOCATE 1. Post Purchase Post-purchase support through HelpDesk Information shared on Suunto Sports.com (Forums, travel logs) FAQ, User Manual, warranty registration through Suunto. com 2. Advocate Outreach Whistler/Blackcomb Partnership Outdoor University Association with various outdoor organizations (NSP, PSIA) 3. User Conversion Advertisement and product reviews in specialty magazines Retail support through displays, brochures, and other POP materials Sponsorships (i.e. Whistler/ Blackcomb Freeride Team) Trade Shows (i.e. Outdoor Retailer Trade Show) POTENTIAL CUSTOMER

15. COMMUNICATION PROGRAMS SHOULD BE DESIGNED TO SPECIFICALLY REACH CONSUMERS AT ALL STAGES TO ENSURE NEW CUSTOMER ACQUISTION IS STIMULATED THROUGH MANY ANGLES Stage in LoopInitiativeDescription Suuntosports. com Web ads and billboards Trial Programs Post Purchase User Conversion Provide incentives to turn active Suunto users into advocates through positive user experiences Give exclusive service/support to owners through Suunto.com, Suuntosports.com and other Suunto managed communication channels Develop and maintain a strong relationship with influential members of the community who actively communicate Suunto’s benefits to other users Tie up with well regarded schools in each sport segment and coordinate lessons which demonstrate the performance benefits of sports instruments Trial programs at targeted locations allow potential users to actually experience the benefits of Suunto products before taking the “plunge” Targeted advertisement through the web and through billboards is an efficient way to reach a larger portion of potential users Tactics Advocate Outreach Pro Deals Suunto Pro Lessons Periodic newsletter with user tips, special discount offers, and information on sport related activities Rewards such as Suunto branded hats/t- shirts for posting logs and referring new members Discount/Giveaways to influential community members (instructors, performers) to create instant advocates Trial programs allowing target users to use product for a limited amount of time Coordinated lessons structured around Suunto products to improve performance Billboard placement on highways leading up to major ski resorts/National Parks Web ads focused on major sports- related sites and technology/travel sites

16. CASE STUDY: TIVO HAS SUCCESSFULLY DEVELOPED A DEDICATED COMMUNITY AMONG EXISTING USERS BY SUPPORTING USER DRIVEN COMMUNITY SITES SUCH AS TIVOCOMMUNITY.COM AND BY OFFERING EXCLUSIVE SERVICES TO ITS SUBSCRIBERS Post Purchase The company encourages TiVo owners to host what might be dubbed "TiVo-ware parties," … TiVo-ware parties give non-users the chance to experience some of TiVo's features, such as pausing the show or rewinding it for an instant replay. TiVo sometimes creates special content around a big event, such as the Super Bowl or the Oscars, that only TiVo owners can watch. – Fast Company Emphatic TiVo fans came in droves. More than 100 members of the TiVo Community Forum clustered around a barbecue, swapping screen names and software-upgrade tips. Most of them had never met. The thread that binds these tech fans together is an unabashed love for TiVo, the digital video recorder with a Mac-like devotion and following. – Tech TV Total Cumulative Subscriptions 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Apr 30, 2001 Jul 31, 2001 Oct 31, 2001 Jan 31, 2002 Apr 30, 2002 Jul 31, 2002 Oct 31, 2002 Jan 31, 2003

17. CASE STUDY: PALM SUCCESSFULLY LAUNCHED ITS PDAs WITH MINIMAL ADVERTISEMENT SPENDING, INSTEAD RELYING HEAVILY ON WORD-OF-MOUTH INITIATIVES SUCH AS MONEY- BACK GUARANTEES AND REFERRAL PROGRAMS The April 1996 launch of the PalmPilot™ in the U.S. market went ahead with a launch budget of less than $5M Palm began by “seeding models with influential analysts and journalists to get a buzz going...” (Khermouch, 1997) A no-questions-asked, money-back guarantee was offered to reduce the purchase risk to consumers Finally, simple customer loyalty programs were established, rewarding customers who referred new customers to Palm Source:BusinessWeek Advocate Outreach

18. CASE STUDY: SUBARU HAS SUCCESSFULLY BRANDED ITSELF AS A SUPPLIER OF RUGGED OUTDOOR VEHICLES BY ASSOCIATING ITSELF WITH MULTIPLE ORGANIZATIONS THROUGH A VIP PARTNERS PROGRAM Subaru VIP Partners Program Members of participating organizations are now eligible for Subaru's VIP Partners Program. This program allows members to purchase or lease any new Subaru vehicle at dealer invoice cost. Savings may be as much as $1,300 - $3,000 off the manufacturer's suggested retail price, depending on model selected. User Conversion

19. CASE STUDY: POLAR HAS AGGRESSIVELY PURSUED A COMPREHENSIVE COMMUNICATION STRATEGY THROUGH PARTNERSHIPS AND GRASS ROOTS COMMUNCIATION AND HAVE CAPTURED NEARLY 80% OF THE HEART RATE MONITOR MARKET IN THE U.S. User Conversion Polar has integrated various low-cost tactics into a comprehensive communication strategy. As a result they have established themselves as the leading brand for HRMs, and have been wildly successful in converting potential users into actual customers. Trial Program Sweepstakes Event Participation Special Events

20. SUUNTO’S WHISTLER BLACKCOMB PROGRAM DEMONSTRATES THE SUCCESS OF AN AGGRESSIVE APPROACH TO BRAND DEVELOPMENT Partnership activities include: Installation of 85 Digital Clocks (with altitude information) at the bottom, middle and top of all lift stations, customer service locations, restaurants and ski schools Exclusive sponsorship of Whistler/Blackcomb Freeride team Supply of wristops to the Atomic Dave Murray Racing Camp coaches and to the top 20 Ski Instructors & the 2 Demo Teams Benefits to Suunto: Rights to use the Official Whistler/Blackcomb logo in all advertising Suunto Station installed in the Mountaintop Business center allows S6 users to download data and print results Visibility to over 2.2 million visitors to the mountains and over 7 million hits on their web site Realization of $27,000 increase in sales in the Whistler area alone Cost to Suunto: $16,000

21. KEY TAKEAWAYS – COMMUNICATION STRATEGY In order to reach a larger audience of potential customers, Suunto must pursue a more broad- based communication strategy Many companies have successfully built brand awareness without substantial expense by using creative guerilla marketing tactics to facilitate word-of-mouth momentum Suunto’s post purchase relationship with users through Suuntosports.com is a strong start to creating a loyal user base that will ultimately drive growth in the U.S. market In the Tactics and Programs section of this report, specific ideas are outlined. The objective of these programs is to create Suunto advocates, strengthen product awareness and build the Suunto brand Virtual Caddy, Smart Sailing and S6 Try Me Additionally, Billboard and Web advertising is recommended in the Tactics and Programs section as a means of expanding reach to a broader audience than current sport specific print media Targeted partnerships such as that at Whistler/Blackcomb are a highly visible and efficient way to increase awareness among potential customers and create brand loyalty among core users

22. DISTRIBUTION STRATEGY

23. IN TERMS OF DISTRIBUTION, MATCHING THE FUNCTIONS NEEDED TO SERVE SUUNTO’S TYPICAL CONSUMER WITH THE DISTRIBUTION CHANNELS APPROPRIATE FOR THE WRISTOP PRODUCTS RESULTED IN A RANKING LED BY SPECIALTY SPORTS CHAINS, BUT ALSO SHOWS CATEGORY KILLERS AND GENERAL SPORTS ARE INTERESTING CHANNELS TO EXPLORE The Index is calculated as a sum of the average of Primary and Secondary functions, with Primary functions receiving 200% weighting and Secondary functions receiving 100% weighting. Functions/ Characteristics definitions are in the Appendix section; Examples of channels above: Specialty Sports Chain: REI/ West Marine; General Sports: Sports Authority; Technology Category Killer: Best Buy; Watch Specialty – Torneau; Fashion - Barneys

24. AN ANALYSIS OF SGB’s ANNUAL REPORT OF THE TOP 100 SPORTING GOODS RETAILERS IS A USEFUL STARTING POINT FOR ANALYZING SUUNTO’S PENETRATION OF MAJOR RETAILERS IN THE UNITED STATES Top 100 Sporting Goods Retailers – 2001 Sales Sporting Goods Business Retail Top 100 Revenue# Stores General Sports 8,681 27 Footwear & Apparel 8,268 23 Specialty Sports - Outdoor 4,028 17 Manufacturer Owned 1,360 6 Specialty Sports - Hunting/Fishing 880 2 Specialty Sports - Golf 1,018 11 Other 782 14 25,016 100 * Other includes specialty sports retailers for biking, running, fitness equipment, marine, soccer and team sports apparel. Source: Sporting Goods Business, June 2002

25. Store Sales # of Stores Suunto Sales Suunto Rank ($MM) ($K) L.L. Bean 1,140 3* 30 25 Cabelas 875 7 26 30 REI 740 61 1,223 1 Gander Mtn. 250 55 Orvis 230 26 19 45 EMS 180 86 147 7 Sportsman's Guide 169 1 Sportsman's WH 110 8 Campmor 85 1 52 15 Christy Sports 43 36 7 105 Kittery Trading 42 1 Popular 35 23 66 14 SUUNTO HAS DEEP PENETRATION OF THE PREMIER OUTDOOR SPECIALTY RETAILERS, HOWEVER CERTAIN STORES MAY BE PERFORMING BELOW POTENTIAL RELATIVE TO THEIR SIZE. STRONG SALES AT GALYAN’S SUGGEST THE GENERAL SPORTS CATEGORY SHOULD BE EXPLORED FURTHER Store Sales # of Stores Suunto Sales Suunto Rank ($MM)($K) Sports Authority 1,400 198 Dicks 1,050 125 Champs Sports 800 574 Academy Sports 775 60 Big 5 663 252 Galyan's 483 26 379 3 Modell's 460 90 Sportmart 370 72 Gart 310 62 Oshman's 256 45 Eastbay 250 1 Scheel's 250 20 Top Ten General Sports Retailers Top Ten Outdoor Specialty Sports Retailers * Excludes outlet stores Source: Sporting Goods Business, June 2002; Reflects 2001 store sales, 2002 Suunto sales

26. Suunto USA 2002 Sales - % # of Stores Suunto USA 2002 Sales - % Dollar Volume CURRENTLY, 90% OF SUUNTO USA’s RETAIL RELATIONSHIPS ACCOUNT FOR ONLY 27% OF WRISTOP DOLLAR VOLUME WHILE THE TOP FIVE RELATIONSHIPS* ACCOUNT FOR 41% OF WRISTOP DOLLAR VOLUME * Top five relationships include REI, Army/Air Force, Galyans, Niche Retail, and Backcountry

27. GIVEN A SIGNIFICANT NUMBER OF SUUNTO’S ACCOUNTS ARE INDEPENDENT RETAILERS, SUUNTO MUST MONITOR THAT FUNCTIONS AND CHARACTERISTICS OF SELECTED RETAILERS ALIGN WITH SUUNTO’S BRAND POSITIONING Monitoring programs such as that recently established with Franklin Resources are important to avoid any damage to Suunto’s image, strategy and ultimately sales A detail as simple as the product placement can damage the entire pricing, communication and product strategy It is difficult to communicate a premium brand at high end prices when the product is poorly displayed as shown in the picture taken at Marmot in Berkeley, CA MARMOT MOUNTAIN WORKS Store. 3049 Adeline Street, Berkeley, CA

28. OAKLEY HAS TRADITIONALLY EMPLOYED A HIGHLY SELECTIVE DISTRIBUTION STRATEGY, A CASE SUUNTO MAY CONSIDER EMULATING AS IT BUILDS THE SUUNTO BRAND Prior to its recent diversification, Oakley consistently pursued a selective distribution strategy for its sunglasses to: Limit number of doors Four years after launching the sunglass line, Oakley stopped soliciting new retail accounts in the US (approx. 7,000 doors were carrying Oakley at that time) Accounts that failed to meet the Company's standard were eliminated As of the company’s IPO in 1995, Oakley sold its products through 7,100 selected retailers with a combined total of 9,500 doors. In comparison, Bolle sold its products through more than 14,000 doors Most of the Company's accounts, other than sunglass retail chains, were single stores Create an exclusivity to the Oakley brand Sold primarily to optical, specialty sunglass and sporting goods stores, carefully selected to complement the high-quality image of the product Never sold in discount stores, drug stores or department stores Ensure a high standard of service Selected stores represented specialty retailers with employees that typically were more product knowledgeable, more customer-service oriented, and better able to educate the customer on the superior attributes of the Oakley products Build account loyalty Oakley required all of its accounts to agree not to sell or divert Oakley products to unauthorized dealers and such sales were monitored via a tracking code In return, Oakley products provided strong, reliable margins because of the limited competition and lack of product discounting Retailers were more likely to give Oakley product prominent shelf space and make timely payments Despite limited account expansion, Oakley grew by increasing sales per account U.S. sales per door increased 50% from 1992-1995, which equates to a compound annual growth rate of about 22%. The increased sales per door approximate a same-store sales figure Sales achieved through mix changes and product expansion with limited door expansion at various accounts

29. OAKLEY CONTINUES TO EMPHASIZE CAREFUL MANAGEMENT OF ITS DISTRIBUTION CHANNEL EVEN AS THE COMPANY’S PRODUCT OFFERINGS HAVE EXPANDED More recently, Oakley has diversified its product line and expanded its distribution network, however this was accompanied by the implementation of the Oakley Premium Dealer program (OPD) Today, Oakley’s products are distributed through approximately 9,200 accounts and 15,600 doors in the United States Comprised of optical stores, sunglass retailers and specialty sports stores, including bike, surf, ski and golf shops, and motorcycle, athletic footwear and sporting goods stores and department stores The Company continues not to sell its current season products through discount stores, drug stores or traditional mail-order companies The OPD strategy was launched in 2000 Intended to enable consumers to identify retailers that offer the broadest selection and latest Oakley products OPD partners will carry all categories of Oakley products that are consistent with the store’s offering and are required to carry a minimum level of sunglass inventory as well as obligated to buy at least 50% of Oakley’s new styles Oakley does not give these dealers preferential pricing, however it offers them exclusive products The OPD partners are eligible for a cooperative marketing and advertising prioritization that includes a positioning on Oakley’s web site as well as tagging in Oakley’s annual print and outdoor advertising campaigns For example, Champs qualified for the OPD program in September 2001, and about 650 Champs stores in the U.S. carry Oakley products and 30 stores will have a dominant Oakley selling area featuring sunglasses, footwear, apparel and watches. In addition, the highest volume Champs stores (100 stores) will double its shelf space devoted to Oakley sunglasses Oakley has enlisted 2,400 U.S. dealers thus far in its OPD program Distribution also now includes Oakley owned stores and store-in-store format with select department stores Owned stores include 14 O Stores, 5 Oakley Vaults (outlet stores), oakley.com, and 64 mall based specialty sunglass stores

30. DISTRIBUTION TO SPECIALTY STORES IS KEY TO ESTABLISHING THE SPORT COMPUTER IN GOLF AND CURRENT SUUNTO SALES FORCE NETWORKS ARE WELL EQUIPED TO SERVE THIS HIGHLY CONCENTRATED CHANNEL Golf Channel Retail Sales – 1997 Top Ten Specialty Golf Stores Sales ($MM)- 1997 Nevada Bob's450 Pro Golf Discount195 Golfsmith180 Edmin Watts160 Golf Day78 Golf USA70 Las Vegas Discount Golf65 Special Tee Golf61 International Golf55 Somerton Springs43 * Specialty sport defined as sporting goods stores specializing in four or less product lines Source: SBI Market Profile: Golf Equipment and Accessories 1998; Golf Pro Magazine 400 800 1,200 Specialty Sport* Pro Shops Discount Stores Mail Order General Sport Department Stores Other

31. WHILE INDEPENDENT SPECIALTY STORES DID NOT SCORE HIGHLY IN OUR CHANNEL ATTACTIVENESS INDEX FOR SUUNTO OVERALL, THE GOLF SEGMENT HAS UNIQUE CHARACTERISTICS THAT SUGGEST PRODUCT PLACEMENT IN THIS CHANNEL MAY HAVE MERIT FOR INCREASING BRAND AWARENESS AND CAPTURING CORE GOLF ENTHUSIASTS Rationale Pro shops are a good fit for Suunto and should be emphasized even though current sales force networks may not have such reach Pro shops tend to specialize in high-end equipment and carry niche or impulse oriented items Demographic profile strongly aligned with Suunto’s pricing strategy Specialty stores may have dollar volume but not traffic – for example “consumables" such as balls are typically bought at discounters Challenging Implementation Fragmented structure of pro shops requires intensive sales function Initially, this can be reduced by targeting high end resorts and schools only Additionally, focus should be on GPS mapped courses where technology has prior acceptance Channel should be valued as a communication tool as well as distribution

32. OUR CHANNEL ATTRACTIVENESS MATRIX ALSO SUGGESTS THAT TECHNOLOGY CATEGORY KILLERS REPRESENT A POSSIBLE OUTLET FOR WRISTOP COMPUTERS GIVEN THE TECHNOLOGY PROFICIENCY OF SUUNTO’S TARGET CONSUMERS AS WELL AS SUUNTO’S INITIATIVES WITH MICROSOFT AND POSITION AS A SPORT COMPUTER BRAND Right place for target market Trend Setting Info Seekers Most likely to have MSN as their ISP (26%) Likely to work in computer related retail (15%) and finance/ consulting/ accounting (12%) Young Mobile Achievers Always on the go; likes travel Likely to work in computer related businesses (13%) Sports Enthusiast Not necessarily “active” Favorite sports: Football (college and professional) and baseball In general, younger demographics, high average income, high education level N-Series Consumer Behavior Profile Microsoft Research 2002 Mass appeal and technology emphasis of the channel reflects target consumer of N- Series Channel offers benefit for differentiating Suunto as a computer vis-à-vis watches The channel also represents a good fit for Suunto’s traditional target consumer profile described earlier as technology proficient Category Killer Functions and Characteristics “Consumer electronic stores like Best Buy and Circuit City have come to be known as the toy store of the American adult male” 2003 Market Study: Information Technology & North American Category Killers- IHL Consulting Group

33. THE N-SERIES REPRESENTS THE ENTRY POINT INTO THE TECHNOLOGY CHANNEL, HOWEVER SUUNTO SHOULD TAKE THE OPPORTUNITY TO ESTABLISH THE SPORT INSTRUMENT CATEGORY AND CAREFULLY MONITOR THE PRODUCT SUPPLY, BRAND IMAGE AND PRODUCT PLACEMENT Given the low margin profits typical of Technology Category Killers’ operations, the current commissions Suunto pays to retailers seems to be suitable for the introduction of the product STRATEGIC CONSIDERATIONS TO BE AWARE OF WHEN ENTERING CATEGORY KILLERS Commissions Product Supply Brand Image The “No backorder” policies of most Techology Category Killers suggests that Suunto should review the current product supply if it decides to sell through this retailers Best Buy and Circuit City’s inventory policies and mass purchasing ensure that a given product is in stock and available Category Killers rely heavily on print and TV advertisement. This could be a great opportunity for Suunto to create brand awareness; nevertheless Suunto should target the premier stores that reflect the Suunto brand and monitor that Suunto’s traditional product line is adequately portrayed vis-à-vis the non-sport functions of the N-Series

34. KEY TAKEAWAYS – DISTRIBUTION STRATEGY Suunto has strong penetration of specialty sports retailers, particularly for its x-sports and snow oriented products Selective criteria should be implemented to ensure that retailers in this channel, many of which are independent operations, reflect Suunto’s premium brand image In return for the robust margins offered by Suunto, products should be expected to receive high quality merchandising space in selected stores There appears to be untapped potential among the general sports category, many of which carry a broad offering of outdoor sporting equipment Store quality in this channel can vary and any further exploration of this channel should emphasize the premium retailers only In golf, a two-tiered distribution approach should be considered: Only premium specialty retailers should be targeted and can be easily reached through current Wilson or Suunto in-house sales forces Pro shops of premier courses offer an opportunity to build product awareness among potential users and align with the demographics appropriate for the G9 The introduction of the N-Series creates the opportunity for Suunto to bring the whole product line to the technology category killers Positioning of Suunto as the “sport computer” is strengthened by entering this channel Opportunity to extend reach to mass audience

35. MARKETING INFRASTRUCTURE

36. TO EVOLVE INTO A MARKET-CENTERED COMPANY, SUUNTO SHOULD ESTABLISH INTEGRATED MARKETING OPERATIONS FOR PRODUCT MANAGEMENT, NEW PRODUCT PLANNING AND MARKETING SUPPORT Ad/PR Mid/long term ad/PR planning & implementation Ad/PR info collection and sharing w/ PM Ad/PR effectiveness analysis Ad/PR agency management Marketing Research Mid/long term market research planning & implementation Market data collection & maintenance Market research initiated by PM Market research agency mgmt Marketing Support Marketing Support Product portfolio/profitability Management Product planning & monitoring Product extension/ termination decision Brand value maximization Market research planning Required data definition Communication strategy planning Cooperation w/ other functions Sales, production, procurement, research, Finance New product development Cross-functional team Decision process (gate) preparation Continuous ideation for new market opportunities Market analysis, internal interview, consumer research, etc Brand/Product Management New Product Planning New Product Planning Suunto needs to develop its own organizational structure to incorporate the key operational functions Key Operational Functions of a Global Consumer Marketing Company

37. SUUNTO NEEDS TO STRENGTHEN ITS MARKETING INFRASTRUCTURE COMPOSED OF INFORMATION, PEOPLE AND PROCESS Strategic Marketing Planning Branding Pricing Distribution Communi- cation Brand/Product Management New Product Development Market Research Information People Process Marketing Strategies Marketing Mix Marketing Operations Marketing Infrastructure

38. KEY INITIATIVES TO IMPROVE SUUNTO’S MARKETING INFRASTRUCTURE InfrastructureDescription Information Process Market analysis based on broad and accurate information about local markets and customers What information is examined? Development of capable talents who manage and analyze information Who is dealing with information? Efficient/ effective flow of information and interaction among people How is the process structured? Initial Assessment Solid top-down market overview (size/penetration by sport sector) Detail info on local markets and consumers (bottom- up) required Marketer development needs to be improved Not enough local information / perspective for PM US branch positioned to focus trade marketing (distribution management) People Key Initiatives Detail Consumer DB Information sharing culture/ organization Assistant product managers (APM) Marketing process improvement for HQ End-user oriented implementation in US branch Marketing Information Management Global Marketing Process Enhancement Marketing Specialist Development Source:GlobeSmart, Team Analysis

39. IMPROVEMENT OF MARKETING INFORMATION MANAGEMENT: CONSUMER INFORMATION AND INFRASTRUCTURE TO SHARE IT SHOULD BE ESTABLISHED Profile of existing customers -Contact/Product/Complaints -Demographic/Preference Focused database for loyal customers -Special management of active loyal customer (e.g., top 5% ) information -Basis of membership activities and consumer research (e.g., focus group) Planned by PM/Customer Service Maintained by Customer Service Consumer database Financial database (product) Non- normalized market data Development of Consumer Database Spec R&R Sales/profitability by product/retailer Managed by finance/control function Spec R&R 3d party market/ consumer research Managed by PM Spec R&R Information Sharing Culture/Organization Information Creation & Maintenance Exchange and co- usage of information Company culture that favors knowledge sharing -IT is only a piece of KM Multi-dimensional efforts required -Top management initiative -Incentive/reward -Communication/ teamwork Comprehensive and Exhaustive Customer Understanding Information Usage & Sharing Technology Culture

40. ENHANCEMENT OF MARKETING SPECIALIST DEVELOPMENT: ON-THE-JOB TRAINING TO DEVELOP MARKETING SPECIALISTS REQUIRED Marketing Director PM for X- sport/Snow PM for X- Marine/Golf PM for Diving PM for Compass APM............ To develop a capable marketing specialists through mentorship/on-the-job-training To strengthen market research by letting APM focus on basic market research and analysis To help product managers spend more of their time on long-run significant tasks (e.g., NPD) To help product managers spend more of their time on long-run significant tasks (e.g., NPD) Introduction of Assistant Product ManagersPrimary Objectives Support PM’s works Focus on basic market research Rotate after 1~2 years

41. Marketing Headquarter (Finland) Marketing Headquarter (Finland) ENHANCEMENT OF GLOBAL MARKETING OPERATIONS PROCESS: HQ NEEDS TO HAVE MORE LOCAL MARKET INFORMATION, WHILE US BRANCH COLLECTS INFORMATION AND MAINTAINS RELATIONSHIP WITH END-USERS Development of global products basedon localized information - Research on local consumers(Europe, US, and Asia) Central management of globalmarketing activities - Closed loop by monitoringimplementation results Development of global products basedon localized information - Research on local consumers(Europe, US, and Asia) Central management of globalmarketing activities - Closed loop by monitoringimplementation results Strategic directions Implementation guideline Strategic directions Implementation guideline Detail implementation planning Market monitoring Consumer/distributor info Detail implementation planning Market monitoring Consumer/distributor info 3-1 Marketing Process Improvement First-hand information source on USconsumers/distributors Planning and implementation of detailmarketing activities - E.g., user group support First-hand information source on USconsumers/distributors Planning and implementation of detailmarketing activities - E.g., user group support 3-2 End-user Oriented Implementation Local Branch (US) Local Branch (US)

42. KEY TAKEAWAYS - MARKETING INFRASTRUCTURE IMPROVEMENT Marketing infrastructure can significantly impact on long-term performance Improvement of marketing infrastructure is a result of combined efforts in information technology, people development, process reorganization -Reward system, incentives, and performance evaluation (e.g., KPIs) should be aligned in accordance Top management should constantly care about improving marketing infrastructure

43. MARKETING INFRASTRUCTURE ACTION PLAN ItemsDescription Marketing Information Management Marketing Process Realignment Marketing Process Realignment Consolidation of consumer database Clear roles & responsibilities in marketing data management Master plan to develop marketing experts -Assessment of various alternatives including introduction of Assistant Product Manager Redesign of product development/ management process in headquarters Assignment of information collection/ implementation planning function in local branch (US) Goals Marketing HR Improvement Roles&Responsibilty To increase market-driven consumer understanding (bottom-up) To build basis to conduct marketing campaigns targeting end-users To establish systematical infrastructure to develop capable marketers To strengthen local market understanding in product management/ development in headquarters To reposition local branch (US) as a local information provider and implementation planner PM – planning/analysis Customer service – IT/maintenance/ analysis Task force under CEO direction - planning Central board under CEO direction Marketing Director- planning Local branch – participation in planning Suunto needs to consider creating a central discussion board to supervise and make decisions about the marketing infrastructure initiatives

44. MARKETING INFRASTRUCTURE ACTION PLAN : MARKETING INFORMATION MANAGEMENT Objective: To increase market-driven consumer understanding (bottom-up) and to build basis for end-user marketing campaigns Rationale: Currently, Suunto is focusing on solid top-down market overview (size/ penetration by sport sector) Detailed studies on local markets and consumers required to complement the top-down perspectives Special management of core loyal consumers (“user advocates”) required to improve referral marketing effects Implementation Direction (1) Plan/ Design of Consumer Database A PM will be responsible to consolidate other PM’s opinions and design information specification required for consumer database Customer Service Manager will participate in planning and lead discussion on practical implementation and technical requirements The dedicated PM will also develop plans to collect and maintain the consumer information, having close discussion with Commercial Operations and local branches Marketing Director/ CEO will supervise the progress (2) Implementation/Analysis Customer Service Manager will be in charge of constructing IT systems and operating consumer database Customer Service Team will provide periodic analysis report on consumer data, after agreement with PM’s on the detailed report requirement PM’s will analyze the consumer database for product management/ development

45. MARKETING INFRASTRUCTURE ACTION PLAN: MARKETING HR IMPROVEMENT Objective: To establish systematical infrastructure to develop capable marketers Rationale: Continuous development of capable marketers is a basis for transforming into a marketing-oriented company Currently only a few of marketing-dedicated people work in headquarters Implementation Direction (1) Establishment of Task Force Under CEO direction, Marketing Director and HR specialist develop a report on marketing HR issues - Assessment of current marketing-related HR practices - Benchmarking of marketing HR in global marketing companies - Development of marketing HR improvement plan (2) Key Items To Be Reviewed Organizational change - Potentially introduction of Assistant Product Managers Revision of recruiting/ selection process Redefinition of marketing career track Improvement of marketer education/ training Revision of reward/ incentive system

46. MARKETING INFRASTRUCTURE ACTION PLAN: MARKETING PROCESS REALIGNMENT Objective: To strengthen local market understanding in product management/ development in headquarters To reposition local branch (US) as a local information provider and implementation planner Rationale: Currently, information/perspectives of local markets not provided enough for PM’s at headquarters Local branch (US) focusing on “trade marketing,” dealing with retailers, not end-users Implementation Direction (1) Establishment of Central Board/ Task Force for Process Realignment CEO will supervise the progress and make decisions Marketing Director/ PM’s will develop a plan to redesign marketing process in headquarters, incorporating roles and responsibilities of local branches Commercial Operations/ local branches will participate in the Board and discuss (2) Key Items To Be Reviewed (New) Product development/management process - How to incorporate local consumer needs and market situation Process to communicate local market/ consumer situation to headquarters Roles and responsibilities between headquarters (PM’s) and local branches - Roles of local branch as a local information source and implementation planning

47. PROGRAMS & TACTICS

48. SUMMARY OF POTENTIAL NEW WRISTOP MARKETING PROGRAMS & TACTICS ProgramDescription Virtual Caddy G9 training Aid Program; target instructors from very well known golf academies to use G9 as a training aid tool Goals Cost and Benefits Create advocates that will spread the word by exposing the benefits of the product approx $50K to reach approx. +75k players/year Smart Sailing M9 training aid program; target sailing instructors of US Sailing Certificate Schools. Idea is to use M9 as a training aid tool Create advocates that will spread the word by exposing the benefits of the product approx $47K to reach approx. 20k sailors/year S6 “Try Me” “Try out sessions” in the best ski resorts of the US. Place a booth at the central area of the mountain and let skiers try the wristop computer for a few rides Attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides $35K to show the benefits to 11.5k potential users Billboards Web Ads Billboard ads in targeted areas Focus on snow and x-sport Ski resorts/national park To increase brand awareness$ 110K with an expected reach of 3.4 million potential consumers Banner ads in targeted web sites Generate traffic to Suunto’s web sites To increase brand awareness$17K per month to reach 200k potential consumers New marketing programs are more cost-effective than magazine ads Magazine ads $16K per month to reach ~90K target consumers (1) (1)1 page ad for S6 on Skiing Magazine ($15,675 ); target consumers(88K) = target ratio(22%) x circulation (400K) Source:company data, team analysis

49. G9 TRAINING AID PROGRAM: “VIRTUAL CADDY” OVERVIEW Target: Golf instructors of well known Golf Academies Objective: Create advocates that will spread the word by demonstrating the benefits of the product and help build the brand Rationale: To capture Golf Academies as marketing media or tool for Suunto, a benefit for the Academy must exist. The top 25 Golf Academies in the U.S. emphasize and sell as a value added service to their customers the fact that they have computerized video analysis, techniques and technology to help the client to IMPROVE THEIR GAME. The benefit is clear for the academies, because Suunto represents another “trainer aid device” to offer to their clients, thus, there could be a competitive advantage for Academies that integrate the G9 as a improvement tool to help their customers….”The latest in training technology” Technology proficiency of the teachers 10 out of top 25 are in California, 2 in Carlsbad Implementation: Staged roll – out: start in one State (California), try the concept, build strong relationship with your users, create success stories and move to the next state Selection criteria for the Golf Academies should include: prestige, location, technology usage for teaching purposes (see next slide for a proposed roll- out plan) Try to develop a certificate for Academies such as the PADI case... For example, “Suunto compliance” or “Suunto inside” (as Intel program) to start creating the image of enabler compan… enabler in the sense of allowing players to improve their game Expected Cost/Benefit: approximately $50K to reach +75k players/year… if just 10% of the players buy the wristop computer, Suunto could achieved the quota for two years

50. G9 TRAINING AID PROGRAM: TARGET GOLF ACADEMIES

51. G9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS Five instructors per Academy Teaching 5 hours/ week One player per instructor $150 marginal cost per Wristop One hour training for each instructor

52. Community Deeper understanding Instant satisfaction Products Aiming to affect the instant satisfaction phase G9 TRAINING AID PROGRAM: A GOOD FIT WITH CURRENT PRODUCT STRATEGY

53. G9 TRAINING AID PROGRAM: STAGED ROLL OUT Pilot Test in Carlsbad – Learn and build success stories Roll out if successful in California Roll out to the most prestigious schools in the US Create Suunto Certificate program for schools

54. M9 TRAINING AID PROGRAM: “SMART SAILING” OVERVIEW Target: Sailing instructors of well known Sailing Academies in the US., specifically US Sailing Certificate Schools Objective: create advocates that will spread the word by demonstrating the benefits of the product Rationale: The rationale suggested for the introduction of the G9 Training Program apply in this case. Again, in order to capture Sailing schools as marketing media or tool for Suunto, a benefit for the Academy must exist. The top 50 Sailing Schools of the U.S. is provided in the next slide, the idea would be to sell them the M9 at a discount to help them improve their teaching techniques The benefit, again, is clear for the academies - M9 is a “trainer aid device” that will improve their customers’ skills and thus the name of the School 15 out of top 50 are in California, facilitating the launch and control of this initiative Implementation: Staged roll – out: start in California, try the concept, built strong relationship with your users, create success stories and move to the next state if the results are favorable Selection criteria for the Sailing schools should include: prestige, location, US Sailing Certification Again the idea of a Suunto Certification for instructors is a good idea to build the “desirable” image around the product Expected Cost/Benefit: approximately $47K to reach roughly 20k sailors/year

55. M9 TRAINING AID PROGRAM: TARGET SAILING ACADEMIES US Sailing Association

56. M9 TRAINING AID PROGRAM: INITIAL COST/ BENEFIT ANALYSIS Assumptions: Five Instructors per school Five M9 per school Teaching 3 sessions/ week $150 marginal cost of a Wristop One Hour training for each instructor

57. M9 TRAINING AID PROGRAM: STAGED ROLL OUT Pilot Test in California – Learn and build success stories Roll out to to FL if successful experience Roll out to the,most prestigious schools in FL, take advantage of the geographic concentration of the schools

58. S6 DEMO PROGRAM: ”TRY ME” OVERVIEW Target: Skiers at intermediate and advanced levels of expertise of well known resorts Objective: attract potential buyers by letting them experience the instant satisfaction a wristop computer can provide with a couple of rides Rationale: In snow sports, it is easier to provide the instant satisfaction of Suunto’s products by showing on a few rides how the wristop computer can help you to improve your performance by illustrating the speed and altitude of the skier The best ski resorts are geographically concentrated, facilitating the launching process and logistics Demo concept strongly accepted in snow sports The skiers are “gadget” oriented consumers - they love to ski with latest technology in skis, jackets, Camelbaks and some of them even MP3 players To complement this initiative, some merchandising like t-shirts or caps should be included; Suunto must look for vehicles to overcome the stage where the brand is just on the wrist Implementation: Plan “try me” sessions per state, starting with the most visited ski resorts in the U.S. Selection criteria for the ski resorts should include: volume of visitors, location, percentage of intermediate and advance trails (this way there is more probability of hitting our target market) Given the limited resources in terms of human labor in the U.S., probably the right way to start is by hiring an outsourcing company. If the program works, future in-house could be considered Expected Cost/Benefit : US$35K to show the benefits of the instant satisfaction of Suunto’s wristop computers to approximately 11.5k potential users. This figure is just skiers trying out the product; if we consider that this skier can talk to at least one more person (conservative), the experience would spread out to more than 23k skiers (in depth)

59. S6 DEMO PROGRAM: TARGET RESORTS SORTED BY SKI EXPERTISE LEVEL AND STATE

60. S6 DEMO PROGRAM: RELEVANT SNOW SPORTS DEMOGRAPHICS Source: National Sporting Goods Association, 2001 Sports Participation Study Ages per Discipline 8% 18% 10%9% 19% 31% 8% 15% 26% 15% 6% 21% 15% 24% 20% 5% 24% 20% 12% 3% 17% 4% 2% 7% 13% AlpineSnowboardCross CountrySnowshoe* 7-1112-2318-2425-3435-4445-5455-6465-7475+ Skiers Gender per Discipline 60.20% 72.40% 50.00% 59.20% 39.80% 27.60% 50.00% 40.80% AlpineSnowboardCross CountrySnowshoe* MaleFemale Total Number of U.S. Snow Sports Visits (In Millions) 12.1 18.1 7 5 12.2 NortheastSoutheastMidwestRockiesPacific Consumer Spending $663 Millions $787 Millions $663 Millions ApparelEquipmentAccessories

61. S6 DEMO PROGRAM: INITIAL COST/ BENEFIT ANALYSIS

62. BILLBOARD ADVERTISEMENT: OVERVIEW Target: Top ski resorts in North America and top national parks in US Objective: To increase brand awareness among target consumers Rationale: Outdoor ads located on highways to ski resorts and national parks can significantly increase brand awareness of snow sports and X-sports products Billboards are more effective to reach target consumers than magazine ads -Only small fraction of skiers or X-sports players regularly read related magazines Implementation: Target top ski resorts and national parks - E.g., Whistler/Blackcomb, Alta/Snowbird, Jackson Hole, Squaw Valley, and Mammoth (ski resorts) - E.g., Great Smoky Mountains, Grand Canyon, Olympic, Yosemite, and Rocky Mountains (national parks) Focus on brand/image, rather than product information - Detailed information can be provided in the company web site (Suunto.com/Suuntosports.com) Need to be combined with other communication initiatives to maximize synergies - E.g., billboards in ski resorts + ski instructors deal + trial/demo in ski slopes Consistent follow-ups critical Expected Cost/Benefit: Assumption: 3 billboards in Whistler/Blackcomb(ski resort)/Great Smoky(park)/Olympic (park+snow), monthly charge $3K, 1 billboard per site Expected reach to target consumers: 3.4 million per year (22% (2) of total 15 million recreational visitors) Expected monthly expense ~$9K, yearly expense ~$110K (1) Based on company data (Suunto US); (2) portion of core consumers for X-sport/snow product in US (company data) Note: Further cost/benefit study required Source:Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis

63. BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS (1) Estimated annual visitors 2.2M Source:Skiing Magazine (2002) Top 25 Ski Resorts in North America (1)

64. Source:National Park Service Top 25 National Parks in US BILLBOARD ADVERTISEMENT: FOCUS ON TOP SKI RESORTS AND NATIONAL PARKS CONT.

65. BILLBOARD ADVERTISEMENT: INITIAL COST/ BENEFIT ANALYSIS Assumptions 3 target areas: Whistler/Blackcomb (X-sport/Snow), Great Smoky Mountains N.P. (X-sport), and Olympic N.P. (X-sport/Snow) 1 billboards ads based on 12 month contract Monthly cost of billboards ads $3,000 Expected target reach = total number of recreational visitors x target ratio (22%) Source: Ski Magazine, National Park Service, Lamar Outdoor Advertising, Team Analysis

66. WEB ADS: OVERVIEW Target: Top sport-related media/portal and community sites Objective: To increase brand awareness among target consumers Rationale: Suunto’s target consumers are technology and internet-savvy Web ads can generate traffics to Suunto sites, Suunto.com/SuuntoSports.com Implementation: Prioritize target web sites: focus on visitor fit (Suunto’s target consumers) and traffic (number of visits/page view, etc) - Sport portal/media sites and Sport segment specific sites are first priorities - Computer/technology sites and travel info/tool sites are second priorities - General portal/news and other high-traffic sites are less effective for target web ads - Generate forwarding traffic from web ads to Suunto’s web sites - Monitor click-through rate and evaluate advertisement effectiveness - Need to be connected to other marketing campaigns (e.g., user events, special offer, etc) Expected Cost/Benefit: Assumption: 1 banner ad per each target category (sport portal/media (1), sport segment specific (4), computer/tech (1), and travel (1)), cost $20 per thousand banner impression (reach) ~$17K per month or ~$200K per year for 7 target sites, expected reach ~200K target consumers per month Note: further cost/benefit study required Source:TrafficRanking.com, Alexa.com, Team Analysis

67. WEB ADS: TOP GENERAL SPORT PORTAL/ MEDIA SITES Top 20 Sport Portal/ News /Media Sites (1) Rated by TrafficRanking.com; sports.yahoo, sportingnews.com, sportinglife.com, and foxsports.lycos.com are excluded but ranked high by Alexa.com; (2) A trip to a site by an individual (not unique) staying more than 20 min; (3) Refers to No. of pages served; (4) HTML links on other web sites that lead to the site Note: Figure is based on around 30,000 sample surfers selected by TrackRanking.com Source: TrafficRanking.com (6.2003), Alexa.com (6.2003), Team Analysis (1)(2)(3)(4)

68. WEB ADS: TOP SPECIALIZED SPORT SITES DEDICATED TO SUUNTO’S TARGET SPORT SEGMENTS Note: surveyed web sites include portal, news/magazine, and organization sites for each sport segment Note: Figure is based on around 30,000 sample surfers selected by TrackRanking.com Source: TrafficRanking.com(6.2003), Team Analysis X-sports Snow Sports GolfMarine Top 10 Segment-specific Sport Sites

69. WEB ADS: INITIAL COST-BENEFIT ANALYSIS Assumptions 7 target sites: sport portal/media (1), sport segment specific (4), computer/tech (1), and travel (1)) 1 banner ads per site Cost per thousand banner impressions: $10 Banner impression = number of visits Internet users in US: 167million Internet users between 25 and 49 years old: 52% of total Internet users Expected target reach ratio: 22% Source:Alexa.com, TrafficRanking.com, Internet Search, Team Analysis

70. WEB ADS: FOCUS ON MAJOR SPORTS-RELATED SITES AND TECHNOLOGY/ TRAVEL SITES, WHERE TARGET CONSUMERS AND HIGH TRAFFIC EXIST Prioritization of Web Site Categories General portal/directory General news/media Shopping /auction Traffic Consumer Target Sport- enthusiastGeneral High Low Priority sites Travel sites Sport portal/ news/media sites Other category- specific sites (1) Computer/tech sites Segment- specific sport sites Sport user group/club sites (1)Entertainment, art, health care, business/economy, science, etc. Source: Team Analysis

71. Allow users to try out a product for limited time. Quick-user guide showing how to use basic functions. Nurture community develop- ment through periodic communication with end-users Opportunity for Suunto advocates to share experiences with others. A PC may be placed for on-hand demonstration. IN SUMMARY, A COMPREHENSIVE COMMUNICATION PROGRAM HAS THE POTENTIAL TO TAKE THE WHISTLER/BLACKCOMB PARTNERSHIP FURTHER Advocate Outreach User Acquisition Post-Purchase Strategic Partnership i.e. Whistler Suunto Booth on site S6 Demo Program Special discounts for lesson participants Giveaway program to instructors Work with instructors to incorporate WTC to improve game. Encourage them to post measurable results on Suuntosports. com Lessons utilizing WTC as performance enhancement tool Communication of upcoming events through newsletters Encourage users to post “success stories” through giveaways Suuntosports.com Warranty Registration on Suunto.com Purchase decision

72. KEY MILESTONES FOR RECOMMENDED ACTION ITEMS Action Items 3Q 20034Q 20031Q 2004 2Q 2004 Marketing Information Management Marketing HR Improvement Billboards Ads Web Ads Start w/ launch of N-Series Start w/ launch of new X-sport/Snow product Requirement study/design finish Develop. finish System Open Task force formedPlan finishedNew process launch Interim review Marketing Process Realignment Central board formed Plan finished Effectiveness evaluation G9 Training Aid Program Pilot in California Interim review New process launch Replicate to FL, PX, LA, TX Replicate to the rest of US M9 Training Aid Program Pilot in California Replicate to FL, NY, TX Replicate to the rest of US S6/X6 Try-Me Program Pilot in California Replicate to the rest of US Start planning Communication Marketing infrastructure

73. FUTURE CONSIDERATIONS

74. SO FAR, WE HAVE EXPLORED THE OPPORTUNITY SUUNTO HAS IN THE SHORT TERM TO IMPROVE THE COMPANY’S POSITIONING IN THE U.S. MARKET BY STRENGHTENING THEIR DISTRBUTION STRATEGY AND BRAND AWARENESS IN ORDER TO INCREASE PENETRATION AMONG THE EXISTING TARGET SPORT SEGMENTS # Customers New Product Development Current penetration Increase penetration within current niche Short Term GoalsLong Term Goals Goal: dominate sport enthusiasts niche Increase quality of distribution channels (search for value added service channels) Emphasize product placement/ merchandising Increase communication effectiveness and strengthen brand awareness

75. IN THE LONG TERM, THE COMPANY COULD PENETRATE DIFFERENT MARKETS, WHICH MEANS EXPANDING TARGET CUSTOMER SEGMENTS AND OFFERING A NEW VALUE PROPOSITION # Customers New Product Development Current penetration Increase penetration within current niche Explore different niches Penetrate different niches, introduce different products Short Term Goals Long Term Goals Goal: Create product innovator brand Modify some products to go after additional sport users and explore some other market niches Attack mass sport segment (not just sport enthusiasts) Perform minor product development to simplify Increase presence in general sports retailers Continue to strengthen Suunto brand awareness Goal: Diversification to increase revenues Leverage Suunto brand to explore new products (sports apparel) Increase presence in additional distribution channels Explore self owned Suunto stores or franchises

76. APPENDIX

77. APPENDIX: Distribution Matrix Definitions of Key Functions/ Characteristics

78. DEFINITIONS OF KEY FUNCTIONS AND CHARACTERISTICS RELEVANT TO DISTRIBUTION OF SUUNTO PRODUCTS

79. APPENDIX: Sporting Goods Business’ Top 100 Sporting Goods Retailers

80. SBG’s TOP 100 SPORTING GOODS RETAILERS Source: Sporting Goods Business, June 2002; Reflects 2001 store sales; highlighting reflects current Suunto USA retailers

81. SBG’s TOP 100 SPORTING GOODS RETAILERS CONT. Source: Sporting Goods Business, June 2002; Reflects 2001 store sales ; highlighting reflects current Suunto USA retailers

82. SBG’s TOP 100 SPORTING GOODS RETAILERS CONT. Source: Sporting Goods Business, June 2002; Reflects 2001 store sales ; highlighting reflects current Suunto USA retailers

83. SBG’s TOP 100 SPORTING GOODS RETAILERS CONT. Source: Sporting Goods Business, June 2002; Reflects 2001 store sales ; highlighting reflects current Suunto USA retailers

84. APPENDIX: Top 100 Golf Courses in the USA

85. THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS Source: Golf Magazine

86. THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT. Source: Golf Magazine

87. THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT. Source: Golf Magazine

88. THE TOP 100 GOLF COURSES IN THE USA WOULD BE A GOOD TEST MARKET FOR SELLING THE G9 IN PRO SHOPS CONT. Source: Golf Magazine

89. APPENDIX: Oakley / Fossil Strategy Overview

90. A MULTI-FACETED MARKETING STRATEGY HAS BEEN CORE TO OAKLEY’S BRANDING AND ENABLED OAKLEY TO BECOME AN IN-DEMAND BRAND Sports marketing has been essential to Oakley’s branded strategy Oakley has utilized sports marketing extensively to promote its products and their image Use of high-profile athletes that wear, evaluate and promote the company’s eyewear Athletes and public figures selected to provide a pure editorial endorsement of the brand as opposed to a commercial endorsement Most often accomplished through the use of two- to four-year performance contracts with small retainers In addition, Oakley products supplied to athletes and public personalities that wear the sunglasses without any formal arrangement at a reduced cost or without charge The company internally employs a marketing staff to identify athletes in each market segment and niche, so it can negotiate the contracts with the athletes, as well as educate and train the athletes in all aspects of Oakley products Sports marketing supported with advertising through print media, outdoor media, in-store visual displays and other point- of-sale materials Advertising intended to educate consumers on the health and performance benefits of Oakley products as well as to impart technical information in layman's terms Print media campaign focused on sport publications such as Bicycling, Surfer, Powder and lifestyle/music publications such as Details and Rolling Stone Campaigns occasionally involved electronic media, primarily television, to promote its image and to introduce its brand name to a larger universe of potential customers. Oakley primarily selected specific sports programming such as the Olympics and the Tour de France and contemporary channels, such as MTV and ESPN As of 1995, Oakley’s marketing budget represented approximately 6% of sales, of which it allocated approximately $5 million for endorsement arrangements and $3 million for advertising

91. OAKLEY HAS PROJECTED THE IMAGE AS AN IINOVATOR ACROSS ALL THEIR PRODUCT LINES AND CREATED AN EXPANDED DISTRIBUTION NETWORK

92. WITH A SIMILAR STRATEGY, FOSSIL IS A GOOD EXAMPLE OF DIVERSIFICATION BY MEANS OF LEVERAGING ITS BRAND. FOSSIL IS EXPANDING THEIR MARKET REACH AND PRODUCT OFFERING Fossil produces over three hundred different styles of watches in a line which continually changes After augmenting the watch selection choice for consumers, Fossil expanded its selection to other fashionable accessory items Fossil introduced small leather goods in 1992 for men and women. Wallets, belts, key chains and backpacks helped Fossil establish its expertise in leather goods In 1995,Fossil moved into the eyewear market introducing uniquely designed sunglasses creatively capturing the Fossil image In addition, the company began opening a group of outlet stores nationwide creating its own distribution channel for discontinued items In 1996, Fossil began opening several company-owned accessory stores During 2000, Fossil introduced its first line of apparel, launching it both on-line as well as through several larger format company-owned stores

93. APPENDIX: Other

94. Suunto Brand Peeling off the Wristop computer IMAGE POST PURCHASE IS ALSO IMPORTANT