Transcript Trends Affecting the Downhill Ski Resort Industry

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

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
Sources For Trend #1

National Tourism Foundation

http://www.ntaonline.com/www2/MAPs/african_american_market/section_1.html
– “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.”

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

"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."

The Detroit News: Michigan Ski Resorts Put Women at the Top
of the Hill

http://detnews.com/1999/entertainment/0129/ski/ski.htm
– Females now account for 40 percent of skiers and 25 percent of
snowboarders, says the Snow Sports Association for Women.
Socio-Economic Trends

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

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

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

Consumer promise
– Statement summarizing the benefit of the
product or service to the consumer
Lifestyle Trends

Trend #5:

Target consumer demographics
Packaging & Fulfillment

Product packaging
– Discuss form-factor, pricing, look, strategy
– Discuss fulfillment issues for items not
shipped directly with product

COGs
– Summarize Cost of Goods and high-level
Bill of Materials
Launch Strategies

Launch plan
– if product is being announced

Promotion budget
– Supply back up material with detailed
budget information for review
Public Relations

Strategy & execution
– PR strategies
– PR plan highlights
– Have backup PR plan including editorial
calendars, speaking engagements,
conference schedules, etc.
Advertising

Strategy & execution
– Overview of strategy
– Overview of media & timing
– Overview of ad spending
Other Promotion

Direct marketing
– Overview of strategy, vehicles & timing
– Overview of response targets, goals &
budget

Third-party marketing
– Co-marketing arrangements with other
companies

Marketing programs
– Other promotional programs
Pricing

Pricing
– Summarize specific pricing or pricing
strategies
– Compare to similar products

Policies
– Summarize policy relevant to
understanding key pricing issues
Distribution
Distribution strategy
 Channels of distribution

– Summarize channels of distribution

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

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

International distribution
– Address distribution strategies
– Discuss issues specific to international
distribution
International pricing strategy
 Localization issues

– Highlight requirements for local product
variations
Success Metrics
First year goals
 Additional year goals
 Measures of success/failure
 Requirements for success

Schedule
18-month schedule highlights
 Timing

– Isolate timing dependencies critical to
success