Irwin Sport Case Study
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Situation Audit
The newly appointed Director of Marketing for Irwin Sports, Mr. Greg Anger has been assigned to create the 1996 – 1997 communications strategy for the companys two newest products, Ice and Inline Cover Ups for goalies. It is June 6th 1996, and the annual budget meeting is scheduled for June 27th 1996. (Three weeks away)
Problem Statement
Mr. Greg Anger as the Director of Marketing for Irwin Sports must introduce a marketing communication strategy for Ice and In-line Cover Ups for goalies. Two of the major challenges facing Mr. Anger are the two different major geographical marketing areas; Canada and the United States, and the introduction of an innovative product that is very new to the marketplace. In addition, he has a capital constraint of $115,000 to choose the best communication strategy.
SWOT ANALYSIS
Strengths
Irwin Sports is a division of the Irwin Toy Corporation which is a well established company with major distribution channels for leading brands of sports equipment.
Irwin Sports distributes its products in the U.S. ( 2,200) Canada ( 1,200 retailers) and 35 five other countries.
Irwin Sports is considered one of the channel captains.
The Ice and In-line Cover Ups for goalies is a patented product with no direct competition.
The product is unique – lightweight, durable, could be attached and removed quickly, and provides a lot of benefits for goalies, main of them are performance and stile.
The company conducted a serious market research and can use the results to make the best decision.
The company has already participated in several shows to promote the product and obtained valuable feedback buyers, consumers, professionals and media.
The company obtained an order from the Sport Authority, a large American sporting goods chain, which is going to test both versions in its 5 Canadian outlets. In addition, by June 1996, IS has already received orders from 48 independent retailers from across the US.
IS signed eight NHL players to wear one of the products in the WinnWell line for the 1995-1996 season. Covers Ups belongs this line too, and NHL players are role model for other hockey players, and are very important for establishing equipment-usage trends.
Weaknesses
Irwin Sports is embarking on a new and untested marketing strategy of price skimming. (Existing of a lot of concerns from potential consumers about price).
Ice Cover ups are limited to medium and large sizes, which constricts the market to individuals over the age of 14 and there are only 3 color combinations.
The price point of Ice and Inline Cover Ups for goalies has not been well received by his sales managers. ( $195.00 $179.00 respectively) Price point desired by sales manager $99.00.
The Ice and Inline Cover Ups for goalies is a very new and largely unaccepted product.
In-line Cover Ups can not be used for in-line hockey pads because of their different design.
It means that in the Southern US, where hockey players prefer special in-line pads, the demand for In-line Cover Ups could be very limited.
Opportunities
Based upon surveying in-line hockey associations and publications, in 1994 there were 183 000 goalies playing in line hockey with an annual expected growth rate of 15%. This equates to another 55,000 goalies for a total in line market of 238,000 goalies.
The growth of ice hockey in North America is tremendous too; presently there are an estimated 80,376 minor league goalies and about 20,000 adult goalies.
The product received positive reaction from trade buyers.
In California, there were more players registered in in-line hockey than in baseball in 1995.
Californians are known to pay huge premiums for in-line hockey equipment. This fact coupled with the California growth rate is a great opportunity for the new price skimming market strategy for possible new product, adapted for in-line pads.
98% total North American in-line market is in the U.S.
30% of this U.S. market is in Pacific States.
Used pads have the advantage of being broken in which takes a significant amount of time. The new products allow to extend their life.
In-line hockey has two distinct playing seasons. This is very relevant for the communication strategy.
Both Ice and In-line Cover Ups are marketed under the WinnWell brand as both products complemented one another.
Competitive minor and adult ice-hockey players spend a lot of money for uniforms and equipment.
The launch of the Ice and In-line Cover Ups coincided with the launch of Don Cherrys “Original Series” youth hockey equipment. 73% of the competitive minor hockey parents mentioned price as a very important attributes of goalie pads, and new products can help to save money.
Participation in major shows brings a lot of benefits to the company (recognition the unique benefits of the product, consumer publications, awareness about concerns, orders of the product).
Threats
The premium price may slow down initial growth which is critical for a new product.
Indirect competition from new color customized traditional goalie pads, repainted goalie pads and repaired goalie pads represent a threat.
Used pads have the advantage of being broken in which takes a significant amount of time.
Very little in-line equipment are sold in strong ice hockey markets since players used their ice hockey equipment and are reluctant to buy two sets. However, providing awareness about In-line Covers Up can made this issue an opportunity.