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BRITTANEY SEGUIN
CATHERINE MCCABE
EMMA MARTIN
JEREMY DENOMME
SOPHIE BUESCHLEB
Agency Overview
25 March 2015
OUR TEAM
25 March 2015
Research
About Bauer
Bauer Performance Sports Ltd. was founded in 1927 by the Bauer family in Kitchener, Ontario. The
company began designing and manufacturing hockey skates in 1927 and developed the first skate with the blade
permanently attached to the boot, revolutionizing the game of hockey (Company Overview). Bauer is dominant in
the hockey equipment market and continues to impress customers with its cutting edge innovations. Bauer is
known for its products being the highest quality on the market (Ballingall). It is the largest provider of hockey
equipment to the NHL, with 90 per cent of players currently using at least one Bauer product.
Bauer is a dominant force in the hockey equipment market, employing a variety of strategies to remain
current in the sports marketplace through utilizing engaging social media content, celebrity endorsements and
developing revolutionary sport performance technologies. The main strategy the company capitalizes on is the
acquisition of competitors, the most recent being Easton (baseball), providing Bauer with a large advantage over
their competitors. The company attributes its success to their growing stock, which was at an all time high, at
$24.70 in February 2014 and is currently trading at $24.55 on the TSX (
The Globe and Mail - Stock Quote).
In 2014 the hockey equipment market grew to new heights, with Canadian Tire partnering with the NHL
to boost equipment sales creating a great opportunity for the entire market and proved beneficial to Bauer.
Bauer has a number of competitors, the biggest being CCM and Easton, but these companies remain a step
behind Bauers competitive edge. New competitors struggle to break into the market and are of no concern to
Bauer, as the company continues to expand and dominate across global markets.
25 March 2015
Situation Overview
Bauer will be launching the NX100 in August 2016 and Shoot To Score is currently seeking to partner to
assist in the promotion of the new campaign. Bauers newest stick features the latest innovative Quick Release
(QR) technology that loads and recoils energy allowing for exceptional puck handling and quick-release time.
The NX100 utilizes the most innovative Bauer technology to date. The NX100 also features texXtreme carbon
fibre, making the stick 20 per cent lighter, but no less durable than any other model on the market. The blade is
manufactured with new reinforced carbon fibre allowing for the most durable hockey blade ever used. Underside
tactile grip has been added to the stick for a greater feel and ease with the puck during game time.
Launch Challenges and Opportunity
Bauer is the most recognized brand in the sports performance equipment market, maintaining the
largest market share in ice hockey. Currently, there are more than 6 million hockey players around the world,
allowing for an increased market interest in the NX100. With 90 per cent of players from the NHL using at least
one piece of Bauer merchandise, and a 54 per cent hold in the market share, there is already a strong brand
loyalty. By using a highly recognized athlete such as Alex Ovechkin to endorse our product, this will create
leverage over competition and generate publicity for our campaign and new the stick. With the start-up of the
hockey season and tryouts beginning in August, there is a high demand for quality sticks, making the timing of
this campaign ideal for the end of the Summer.
Bauer and Hockey Canada have teamed up on a joint marketing initiative to draw more kids and novices
to the sport, and have seen an increase of approximately 50 000 players in the past two years. This increase in
hockey administration provides an opportunity for a growing market capture rate and larger success in product
sales.
25 March 2015
The current challenges Bauer faces are the competitor launches, and identifying to the customers what
sets the NX100 apart from previous and competitor products. Through implementing the use of engaging social
media content, celebrity endorsements (Alex Ovechkin) and capitalizing off of the sticks revolutionary sport
performance technology, Bauer will be able to gain the leverage they need to set themselves apart from the
competition.
Market Financials
Bauer went public in 2011 and was listed on the Toronto Stock Exchange (TSX) under Bauer (BAU).
Bauer made a move to the New York Stock Exchange (NYSE) in 2014, under a new name, the Performance Sports
Group (PSG), allowing Bauer to grow to new heights. The move was made after Bauers acquisition of Easton
baseball equipment, which cost the company $330 million (Campbell). The company is now listed as PSG on
both the TSX and the NYSE. When the company went public in 2011 they were trading at $7.50 a share in the
TSX but with their move to the NYSE the company saw the stock trading at $17.50 a share.
The hockey equipment market is predicted to grow by one to two per cent each year and Bauer maintains a huge
gap in the market share. In the 2013 fiscal year Bauer generated revenues of $399.6 million with an adjusted net
income of $25.3 million. Today, analyst believe Bauer to control 45 per cent of the hockey equipment market
share, amounting to approximately $550 million,
which
makes it larger than their next three biggest competitors
combined (
Milstead).
In relation to the global marketplace, Bauer currently holds 49 per cent of the global
market share in hockey equipment sales and continues to build on its growing success.
SWOT
Strengths
54 per cent of the market share in ice and
roller hockey has been captured by Bauer
Strong brand loyalty among athletes
Weaknesses
Pricing may prove to be problematic for the
everyday consumer
Reliance on the forecasts of markets
25 March 2015
Opportunities
Growing market demand as hockey
registration is on the increase
A number of high profile NHL athletes are
sponsored under Bauer allowing for high
levels of exposure (90 per cent)
Bauer continues to expand into new
equipment areas
Acquisition of competitors
Bauer has recently made a move to the NYSE,
increasing the stock trading price to $17.50 a
share
Threats
Competing with other high-profile
companies in the industry: CCM, Easton,
Reebok and Warrior
Products are more durable, the amount of
repeat customers may decline
AHL and CHL contracts remain in the hands
of the competition
New equipment companies continue to try
and join the market and limit Bauers market
share
New NHL stars emerge each year and are
sponsored by competitors
Analysis
Objectives
-
Sell 100 000 sticks in the time of the campaign and the three months following the launch of the event
Create 200 000 media impressions three months leading up to My First Bauer Skills Competition and an
additional 300 000 media impressions in the three months post event
Competitive Strategy
In order to get ahead of the competition and set the NX100 aside from other sticks on the market, we
have invited NHL hockey all-star Alex Ovechkin to exercise Bauers fierce consistency, innovation and
performance technology at the companys My First Bauer Skills Competition. With the emerging market trend for
25 March 2015
high-tech durable hockey sticks, Ovechkin will take part in a hardest slap shot competition with an assortment
of different sticks that will be used to test the strength of Bauer enticing the public to make the purchase of the
NX100. Bauer is the first to use the innovative QR technology offering a unique feature to its consumers. The
revolutionary QR technology will gain media attention, generating a larger number of impressions, thus
generating more buzz in the hockey community.
Jeremy Denomme, will speak at the event on behalf of Shoot To Score to share a personable story of his
first Bauer experience. By connecting with the youth throughout the community at the event, the NX100 will
help young athletes gain confidence in their sport, through the directness and variable flex profile that the Bauer
stick has to offer.
Timing
The My First Bauer Skills Competition will be held on August 22, 2016 from 3-7 p.m. at the Air Canada
Centre in Toronto, Ontario. The downtown location is easily accessible for media and attendees, assisting in
generating buzz for the event. This time of year is when minor hockey league camps begin and before the
primary target audience goes back to school. August is also the time when NHL players begin off ice training, so
there is no game commitment for Ovechkin, allowing him to be more accessible for the event.
Timeline (PR PLAN and EVENT)
Time
Event
Details
Press Release
- Embargoed until July 27, 2016 (launch with social media campaign)
Media Advisory
- Inform and allow enough time for media to attend the event
Media Follow Up
(twice)
Event
- 10 stick giveaways
- Skills competition
25 March 2015
- Media interview
- Filming for commercial
August 23, 2016
Media Follow Up
- Questions
- Feedback
- Confirmation of information media may require
Media Monitoring
and Final Report
Respond to feedback
-
Budget
The total budget allocation for this campaign is $500 000, the breakdown of funds are listed below:
PR Activities
Quantity/
Frequency
Hours
Expenses
*inclusive of our rates as
well as additional fees
Total
News Release
4 hours
$100/ hr
$400
News Release
Distribution
$1000
$1000
Media Advisory
4 hours
$100/ hr
$400
Media Advisory
Distribution
$1000
$1000
Media Kit
40 hours
$125/ hr
$5000
Set Fee
$65 000
$65 000
$7300
1 Round
Trip First
Class
25 March 2015
(Same day
travel August 22,
2016)
Transportation: $1100
(Chauffeur)
Darryl Hughes
Bauer
Travel and
Accommodation
August 22,
2016
One day
trip
Media Coaching
2
(Ovechkin
and
Hughes)
-
Venue
Air Canada Centre
(
Full Venue Rental The Air Canada
Centre)
$6100
3 hours
(already used
to dealing with
media)
$125/hr
$750
10 hours
$73 450
Event
6 hours (set up
and clean up)
4 hours for
event
$88 850
(not including venue and
celebrity appearance)
Filming/
Commercial Cost
(
What Is the Cost of
Video Production for
the Web?
)
30 hours
$20 000
$20 000
25 March 2015
Social Media
Campaign
(Content Creation
Hootsuite)
25 hours
$100/ hr
$2500
Stick Giveaway
$280/ stick
$42 000
Media Monitoring
90 days
4 hours/ day
360 hours total
$50/ hour
$18 000
Website Content
25 hours
$125/ hr
$3125
Final Report
6 hours
$225/ hr
$1350
Totals
$336 225
targeting the players is a key step towards gaining traction in the hockey community
- Players are the first to establish a need and desire for the stick
Parents of Youth
- Provide financial support for youth (children) and are often the purchasing agent, or at the least a factor
in where goods are purchased
- Generating a good impression with parents is the first step to initiating the purchase
- The stick that is being launched may be considered an investment
Media
- Important to target the media as they are a crucial aspect in relation to getting the word out about the
new product and generating publicity for the event and overall campaign
- Radio, television, newspaper (local and national) and local sports bloggers
Toronto and Surrounding Area
- Toronto is home to numerous hockey fans
- The My First Bauer Skills Competition is being held at the Air Canada Centre, making it imperative that
people in the GTA are targeted
25 March 2015
Stakeholders
Customers/ general public
NHL Teams
Retailers
Stockholders
Employees
Competitors (i.e. Easton, CCM, Warrior)
Media
Communication
Tactics
The main tactics that will be utilized for this campaign are: a press release, media advisory, social
media, website content development and an event. A press release will be sent July 20, 2016 and will be
embargoed until July 27, 2016 when Shoot To Score plans to launch the social media campaign. The release will
inform the media of the new product and provide the details of the new stick and celebrity endorsement. The
media advisory will be released on July 22, 2016 informing media of the event and allowing time to RSVP. Our
social media launch and giveaways will begin on Facebook, Twitter and Instagram on July 27, 2016, this is when
we will begin to launch images of the stick to create anticipation of the upcoming event and product release. A
new image with the accompanying stick feature will be released daily until the full stick image is exposed,
similar to a scavenger hunt (see appendix) . Along with every image released, Bauer will be giving away an
NX100 stick. Throughout the social media campaign, the company will continue to do these giveaways,
allocating 50 sticks for each platform. The event will take place on August 22, 2016 in Toronto, Ontario at the
Air Canada Centre. Ovechkin will be in attendance along with the media and the public. A mini skills competition
will be set up where attendees will be able to play with Ovechkin. The event will be filmed for footage for an
online viral video to be released post event. The video will launch on August 24, 2016 on Facebook and Twitter
containing footage of the event, performance of the stick and interviews with Ovechkin.
25 March 2015
Media Questions
1. What differentiates this stick from some of the others that are already out there?
2. Why did you decide to design and release a new stick?
3. Ovechkin, why is Bauer your company of choice?
Key Messages
1. Our newest stick features the latest innovative QR technology that loads and recoils energy allowing for
exceptional puck handling and quick-release time.
2. Bauer is committed to sport and athlete performance, with the launch of the NX100 stick, the company
looks to push the boundaries of sport, helping athletes achieve their impossible.
3. Bauer is the leading developer and manufacturer of sports equipment and the global leader in hockey
with the strongest brand, making it the number one choice for athletes at any skill level.
Spokesperson
Darryl Hughes, marketing director of Bauer Hockey Canada will be the company's media
spokesperson for this campaign. Hughes has more than 20 years of management experience, including
expertise in hockey sales, marketing and operations (Bauer Executives). Hughes has experience with
successfully introducing and marketing innovative products, making him the ideal candidate to help
launch the NX100. Ovechkin will serve as the product spokesperson as he is endorsing and using the
stick. Ovechkin demands a lot of media attention and is a popular player in the NHL allowing for greater
publicity and exposure on an international level.
Evaluation
Measure
Shoot To Score will monitor the hockey stick market over the course of one full year to ensure that 15
per cent of the total market has been captured by Bauer. Tracking sales of the NX100 three months following
25 March 2015
the event will be conducted through the suppliers sales reports to ensure that 100 000 sticks have been sold.
Event attendance will be tracked by the event facilitators on August 22, 2016. The media impressions leading up
to the event and following the event will be tracked through the press release publishing rate and the media
monitoring that will be done post event. Social media monitoring will also be taking place to ensure that our
social media campaign hits all of our objectives, this can be measured through the companys website click
through rates.
Note
: All clients and agencies created in this document are not real and were fabricated for the assignment, the
campaign was not implemented in real life.
25 March 2015
Works Cited
Ballingall, Alex. "How Bauer Emerged as Hockeys Undisputed Top Equipment Brand."
Macleans
. Macleans, 11 Dec.
2011. Web. 25 Mar. 2015.
Campbell, Morgan. "Bauer Hits the New York Stock Exchange under a New Name."
Thestar.com
. The Star, 20 June
2014. Web. 25 Mar. 2015.
"Company Overview."
Performance Sports Group Ltd.
Performance Sports Group Ltd., 1 Jan. 2015. Web. 25 Mar.
2015.
25 March 2015
Appendix
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