1. New Product Development
& Marketing plan:
“Columbia” Snowboards
Corporate Development and Strategies: Alexey Tsukanov
Product Development & Research: Fabricio Schnoremberger
Product Augmentation and Communication: Aygun Suleymanova

3. Company History:
Founded 1937 by Paul and Marie Lamfrom in Portland, Oregon. Began as
a small hat distributor but quickly expanded into
outerwear, sportswear, footwear, accessories, and equipment.
Columbia Sportswear Commercial
Mission Statement:
“Columbia Sportswear outfits outdoor enthusiasts with unmatched
performance and advanced technology from head to toe with
outerwear, sportswear, footwear, and accessories”
Key competitors: The North Face, Patagonia, Timberland
Industry Background
Apparel Manufacturing Industry, (subsector Outerwear Manufacturing)
$7.2 Billion, 6% growth - 2006
2007 2006 2005 2004 2003
Net Sales $1,356,039 $1,287,672 $1,555,791 $1,095,307 $951,786
Net Income $144,452 $123,018 $130,736 $138,624 $120,121

4.  Our recommendation is to expand into sports equipment industry by offering a full line of
snowboards and snowboard equipment.
 This strategy fits with Columbia’s mission statement of offering high quality “head to toe”
products for outdoor enthusiasts.
Sports Equipment Industry Five Force
Analysis
Threat of Entry: Low. High Brand
Awareness, economies of scale.
Industry
Supplier Power: Low. Rivalry: Medium. Buyer Power: Low.
Raw materials (wood) Products are interchangeable products sold through many
are plentiful, no threat Numerous established smaller retailers with
of forward integration. competitors limited bargaining power.
Substitutes: Medium. Other
extreme sports such as mountain
biking, climbing, etc

5. - Sports Equipment is a $25 billion
industry. Snowboarding
subcategory of the Sports
Equipment Industry is a $500
million industry.
Cost Leadership Differentiation
- Very high growth rate. Atomic
Customer base has increased Broad Empire *Columbia*
Burton
from 2.5 million in mid 90’s to Market
over 5 million today.
Narrow
Market Mash
- More than half of the market
share is owned by Burtons
Snowboards.
-Opportunity exists for a high
quality snowboards offered to a
broad market

6. Strengths: Weaknesses:
- Strong brand-name that is - Slowdown in revenue growth
synonymous with quality and due to increased costs and
durability increased competition
- Healthy financials - International expansion has
- Innovative marketing not been very successful
-Reputation as an eco-friendly
company
Opportunities: Threats:
-Very fast growing industry -Economic slowdown may
- Strong demand for high negatively affect demand
quality, durable products - Unpredictable seasonality and
- Emerging markets show good warmer winters may reduce
future potential demand
- Burton Snowboards is a very
strong competitor

7. - Columbia’s strategic
growth entails
expanding product
offering for every
outdoor segment
- Our recommendation
is to acquire a premium
snowboard
manufacturer and
market their products
under Columbia brand

9.  Segment: regular snowboarders-practitioners
 Size: 7.1 million
 Growth rate: 30%
 Access to segment: accessible
 Geographic concentration: US and Europe
 Emotional motives: high
 Company fit & ease of business
 Other business opportunities provided by the
segment: immersion in extreme-sports!


11. Demographics
 most snowboarders are 12-to-24-year-olds
 females make up roughly 25 percent
Geographic targeting: US (38 states)
Social/cultural influences
 inspired by surfing and skateboarding
 came to rebel the more sophisticated way of skiing
 Snowboarders stereotypes: "lazy", "grungy", "punk", "stoners", "troublemakers"
Purchasing behavior: high appealing durable good
 less frequent purchases
 greater consumer investment
 more intensive personal selling

12.  Columbia conveys functionality, durability and high
quality
 associated with active, healthy lifestyle
 brand extension opportunity: positive consumer
expectations, retailer support, leverage current brand
awareness, and reduced cost of the launch campaign
 Create the perception of high value-added product
 Association with Columbia’s points-of-parity

14.  Achieve market share large enough to consolidate the new
product line as a strong competitor in the market.
 Create an association of snowboarding equipments and
Columbia’s name inside the target audience’s minds.
 Making Columbia’s snowboards available and reachable for
any American customer.
 Convey a high-quality message about the new product line to
the target audience.
 Achieve 5% of market share in revenue measure ($24.4M annual
sales) in the second year.
 Sponsor 2 of the 5 best snowboarding professionals in the United
States at the end of 1 year.
 Sponsor at least 2 major US snowboarding competitions at the
end of 1 year.
 Having snowboards available in all states where snowboarding
resorts are popular at the end of 1 year.
 Reach superior product performance indicators than any
industry competitor in 1 year

16. a board that slides on snow
shape with front and back upturned
high speed and agility; no
scratches, and graphics printed on both sides.
3-years warranty; free
engraving; option to customize
boards made of lighter materials,
such as titanium, aluminum, or carbon fiber.

17. Performance
 high performance levels
 constantly assessed: indoor, in a science lab; and
outdoor, a team of pros and amateurs will take the
boards to the slopes and subject them to different
riding styles and terrains
Price-value-quality relationship
 both amateurs and professionals
 it is imperative to deliver a high
value-added product
 practice of higher prices than the
average of competition

19.  Brand name
 Logo design
 Warranty
 Package trade dress
 Customer Relationship Building programs
 Customer Service requirements
 Trade-in; Financing
 On-line community building plan
 Other augmentation
› Engraving
› Customization

20.  Price-quality-value relationship
 Buyer’s perception
 Influences on price
 Pricing Policy
 Pricing objective
 Recommended list price - $479 - $499
 Price adaptation

21.  Distribution requirements demanded by
the target market
 Distribution intensity policy
 Channel path selection
 Supply-chain partners’ selection
 Channel diplomacy
 Reseller program

22.  Target audience profile:
 Channels to be used
› On-line;
› Colleges;
› Snow resort regions
 Geographic coverage
 Frequency
 Key Messages: