CW 2: Marketing Research Proposal Student(s):Daniel Bornstein

Course Leader: Chris Shallow BA MSc

Course: Marketing Research MKT 375/2

Date Due: 5/11/2015

Date Submitted: 5/11/2015

Word Length: 2,000 Comments: Table of Figures:

Figure A: p15, “Unless otherwise in-dicted, Percentage of students inter-ested in Rossignol Products, included in this paper were created by Daniel Bornstein and Hayley Burns, Anglo-American University, Prague, 2015”

Figure B: p15, “Unless otherwise indi-cated, ‘Brand Loyalty of Rossignol Customers’, included in this paper were created by Daniel Bornstein and Hayley Burns, Anglo-American Univer-sity, Prague, 2015.”

TABLE OF CONTENTS:I. INTRODUCTION

1.1 EXECUTIVE SUMMARY……………………………………………………………….. 21.2 OVERVIEW OF ACTIVITIES…………………………………………………………… 31.3 COMPETITORS………………………………………………………………………… 3, 4

II. SITUATIONAL ANALYSIS………………………………………………….. 5

III. OBJECTIVES …………………………………………………...............................6

IV. METHODS 4.1 HYPOTHESIS ……………………………………………………………………………… 64.2 SAMPLE ……………………………………………………………………………………. 64.3 MEASURE ……………………………………………………………………………… 6, 74.4 DESIGN ……………………………………………………………………………… …….84.5 DATA ANALYSIS …………………………………………………………………………84.6 PROCEDURE ……………………………………………………………………………… 84.7 COLLECTION……………………………………………………………………………… 94.8 TIMING……………………………………………………………………………………… 94.9 REPORTING………………………………………………………………………………...95.0 COST AND FEES…………….……………………………………………………………...9

V. RESULTS AND DATA PRESENTATION5.2 CONFIDENTIALITY ………………………………………………………………………………. 115.3 LIMITATIONS ………………………………………………………………………………. ……..11

VI. CONCLUSION6.1 RECOMMENDATIONS……………………………………………………………………………12

VII. WORKS CITED………………………………………………………………… 13

I. INTRODUCTION Skis Rossignol S.A.

Rossignol is a world-renowned French manufacturer of winter sports and outdoor gear headquar-

tered in Isere, France. Rossignol was the first company to manufacturer plastic skis. The com-

pany, Skis Rossignol S.A., was founded in 1907 by a carpenter Abel Rossignol, who had prior

experience manufacturing wood products within the textile industry (Ski Rossignol, p1, 2008).

Rossignol was acquired by the brand Quicksilver from 2005 until 2008 when the company was

sold back to Bruno Cercely, former CEO from 2002-2005. In July of 2013 the Rossignol group

was sold to Altar Equity Partners and Boix-Vixes family (SkiingHistory, p1, 2002). Cercely is

currently the President and CEO of Rossignol (Facebook.com/Rossignol). It is a publicly traded

company that sells on the Euronext Paris stock exchange; it was incorporated in the year 1972.

Rossignol has a sales revenues of approximately EUR 430 million and employs 2,700 people

(ibid., p1). At one point during the 2000s Rossignol held a 40% market share of the ski equip-

ment industry. Rossignol seeks to withhold its market share and spends EUR 14.5 million annu-

ally on research and development.

1.1 EXECUTIVE SUMMARY

This report was commissioned to examine the profit potential within the market of university stu-

dents located in Prague, Brno, Ostrava, and Pilsen. Additionally the report seeks to uncover the

degree of brand loyalty within former customers of Rossignol. We determined both the buying

potential and interest among student and past consumer of Rossignol ski equipment through use

of questionnaire and pilot survey. The research draws attention to the fact that in 2014 the market

share in Rossignol was 40% and the size of the ski and snowboard industry within the university

segment was 5%. Over the past year there was a 2% increased demand for Rossignol products

within the university segment. Further investigation revealed that 90% of Rossignol consumers

were satisfied with their products and would buy from Rossignol again. This revealed strong

brand loyalty among Rossignol consumers in the Czech Republic. The report evaluates the re-

search conducted and concludes that there is a potential to penetrate a new market within the

Czech Republic as well as cross-sell the existing consumer base. It is recommend that Rossignol

target its advertising efforts toward university students throughout the Czech Republic as well as

re-define its brand image to connect with a younger segment. We further recommend Rossignol

promotes its new product line heavily toward former Rossignol customers.

1.2 OVERVIEW OF ACTIVITIES

Rossignol is a pioneer in the way of ski technology. Producing equipment first of wood, then

metal until ultimately landing upon breakthrough fiberglass technology. Since Rossignol stepped

into the spotlight in the 1970s, the company has diversified its offerings past premium fiberglass

skis to cross-country skis, ski boots, poles, snowboards, bindings, accessories, tennis rackets,

golf clubs and apparel (ibid., p2). The majority of products are sold under the Brand Name

Rossignol, with the exception of brand Lange (boots) and Dynastar (skis) (Gale, 2006).

1.3 COMPETITORS

Jarden Corporation is the largest hard-goods sporting equipment company

in the world. It is a leading global designer, manufacturer, and marketer of out-

door recreation activity and sporting goods products including skis, snow-

boards, and winter apparel. It owns the popular ski brand, K2. K2 Corpora-tion was founded by Bill and Don Kirschner in 1962 and is best known for its fiberglass ski

technology, On April 25, 2007 Jarden Corporation announced a definitive agreement to acquire

K2, Inc. for a cash and stock value per share of $15.50. Jarden is controlled by Martin Franklin, a

British investor and triathlete. In addition to skis, K2 also produces snowboards, skates, skate-

boards and footwear. Over the last 50 years K2 has grown into a major conglomerate that is con-

stantly developing new ski technology.

Burton Corporation built the world's first snowboard factory located in

Burlington, Vermont. The CEO Jake Burton is the creator of the one of the

largest snowboard brands in the world; Burton products are marketed world-

wide in over 4,348 stores and 1,536 of those stores are located in the United

States (Marquardt, p2, 2008). Burton stores also sell several sub-brands which focus on specific

market niches. These sub-brands include Anon Optics (snowboard goggles and eyewear), RED

(helmets and body armor), Analog (outerwear) and Gravis (footwear) (Reingold, 2015). In 2005,

the Burton line split into four types of categories: Freeride, Freestyle, Park, and Carving (Mar-

quardt, 2008). In 2009, Burton's line included 61 snowboards in men, women, and youth. In Feb-

ruary 2008, Burton acquired DNA Distribution, which includes the skateboard manufacturer

Alien Workshop, and two other companies (ibid., p2). In 2008, the snowboard equipment indus-

try had grown to $487 million and Burton held 40–70% of these sales, depending on the cate-

gory (ibid., p2).

Salomon Group is a sports equipment manufacturing company that origi-

nated in Annecy, France (Salomon, 2015). The company was founded in 1947

by François Salomon and his wife until three years later it became part of the

Adidas group (Nimmo, 2015). In 2005, Adidas-Salomon announced that it had agreed to sell the

Salomon Group for €485 million to Amer Sports of Finland (ibid., p1). Salomon produces prod-

ucts for a multitude sports markets that include trail running, hiking, climbing, adventure racing,

skiing, and snowboarding. Its products are sold in over 40 countries on five continents (ibid., p2).

North America and Europe hold the highest percentage of Salomon Sales (ibid., p1). Salomon is

number one in ski-bindings market with 46% market share, number one in cross-country boots

and bindings with 30% market share and number two in alpine ski boots (ibid., p2).

II. SITUATIONAL ANALYSISThe strength of Rossignol derives from its leadership; CEO Tim Petrick is one of the most inno-

vative in the industry. In addition, its market contains high barriers to entry but is also high prof-

itability. The ski industry produces a large volume of revenue and Rossignol uses strong distribu-

tion channels to maintain its position as the industry leader. Further, Rossignol operates with two

different strategic business units. Its brand is renowned for using premium ski material and ex-

cellent stock management, as well as innovative research and development. This has contributed

to the strong brand loyalty and recognition Rossignol has achieved in both the domestic market

and economies of scale.

Rossignol’s weaknesses’ include its high debt burden as well as its dependence on supplier’s

prices. The market is highly competitive and entirely seasonal. Further, Rossignol lacks a sus-

tainable and eco-friendly business model and participates in out-sourcing. Lastly, the nature of

the products it sells produce little after-sales revenue.

Rossignol has opportunities for increased sales as the demand for ski equipment increases due to

the recent growth of the world economy as well as the internalization of new markets. As the

world economy continues to expand there has been an increase in expenditures on hobbies within

the outdoor industry. As Rossignol expands its product line and offerings it has the opportunity

to vertically integrate. Lastly, there is ample opportunity for Rossignol to expand their e-com-

merce line.

Threats to the Rossignol company are primarily just two forces; the fierce competition within the

ski and snowboard industry and the weak economic climate in the US. The state of the economy

has a tremendous effect on recreational purchases and expenditures. Another recession simalier

to the one in 2008 would be detrimental to the profitability of Rossignol.

III. OBJECTIVES• To identify a new target market for Rossignol within the Czech Republic

• To identify the profit potential from within the university student market segment

• To evaluate the extent of brand loyalty among existing customers in the Czech Republic

IV. METHODS4.1 HYPOTHESIS

Our hypothesis is that the data collected will identify a new target market among university stu-

dents for Rossignol within the four major cities of the Czech Republic. Additionally, it will un-

cover strong brand loyalty and the large potential to cross sell within the existing customer base.

4.2 SAMPLE

Our target sample is comprised of 500 students from the four largest metropolitan areas in the

Czech Republic: Prague, Brno, Ostrava, and Plzen. We believe this number is small enough to

obtain but large enough to give a valid prediction of the buying potential of this segment. Indi-

viduals were comprised of both men and women, ages 17 to 25. Qualifications included a high

school diploma or equivalent, and the confirmation that they are pursuing a higher degree. Our

goal is to question individuals who would be more likely than not to participate in outdoor

sports. Due to the expensive and selective nature of the ski industry we chose to sample from

four different regions in the Czech Republic and also use education as a way to filter out the least

likely consumers.

4.3 MEASURES

In our questionnaire we used both qualitative and quantitative methods of questioning. We ac-

complished this by asking open-ended questions, close ended questions, completion questions

and the Likert Scale. A disadvantage of using a questionnaire is that is produces limited re-

sponses. Because questionnaires are uniform, there is no room for follow up to answers or ex-

pansion. However, the advantage of using a questionnaire is also its standardization; all respon-

dents will be asked the same questions in the same order. It also provides consistent, un-biased

data that is easy to organize and compare. We concluded the advantages outweighed the disad-

vantages and chose to use this method of market research.

Example:

1. Closed ended questions:

Do you have a desire to participate in winter sport activities?

a.yes/no

2. Multiple Choice:

How often do you ski/snowboard annually?

a. Once or twice a year

b. 3-5 times a year

c. 5-10 times a year

d. 10+

3. Likert Scale:

How much do you agree with this statement?

I plan to buy new ski/snowboard equipment annually.

a. strongly disagree

b. disagree

c. neutral

d. agree

e. strongly agree

4. Open-ended Questions:

A.What ski or snowboard company's’ equipment do you own/use?

___________________________

5. Complete the sentence:

B. The most important feature I look for in ski/snowboard equipment is________?

4.4 DESIGN

A list of past customer was obtained from Rossignol using its CRM Software. With this informa-

tion we emailed and mailed, if no email was found, the survey to the addresses provided. To

reach the university segment we handed out surveys in populated public spaces such as the main

quads and libraries at all the major universities within the four targeted cities. If the test subject

completed the survey in person then they received a 10% discount on all products purchased at

Rossignol retail locations and Rossignol’s E-commerce site.

4.5 DATA ANALYSIS

A descriptive study is one that studies a sample at one point in time with the goals of identifying

areas to further research, better product distribution and provide overall information about a mar-

ket. (Rice, 2). We used a descriptive study to obtain past customer records and question them

about the features and designs that they favor to discover what new features to include in produc-

tion.

Causal: The purpose of causal-comparative is to reveal any potential cause and effect relation-

ships between two or more groups (Kravitz, 2). We acquired intelligence comparing the sales of

Rossignol skis and their compeitiors during the period of August to December. The variable be-

ing the ski and snowboard products and the dependent variable will be the amount of Rossignol

products sold from August to December, and compare the amount of ski and snowboard products

sold by Rossignol’s competitors during the same time.

4.6 PROCEDURE

The research is comprised of both primary and secondary data sources. Primary research is de-

fined as “original research carried out to fulfil specific objectives” (Rice, 10). The primary source

of data will be our questionnaires. This questionnaires will be given to existing Rossignol cus-

tomers and the sample of university students. This method is more costly and time consuming

but will produce the most current and candid information relating to our objectives. Secondary

data is defined as “data originally collected for any purpose other than the current research objec-

tives usually by a third party” (10). The secondary data sources we will use are Rossignol’s CRM

information and databases. In order to target existing customers, we will acquire information

from Rossignol’s past purchase record as well as their current statistics on the current market

they target.

4.7 DATA COLLECTION

First we collected data first from PoS scanners and databases of Rossignol ski companies in the

Czech Republic. Using email and home addresses from the data obtained, the survey was sent for

completion. We collected it via a custom email account. The other survey was distributed in per-

son and also collected in person. The survey is designed to be short enough to answer in five

minutes.

4.8 TIMING

The window of time in which we completed the survey is from the beginning of August 2016 to

December to 2016. This is the most popular time when people buy skis and therefore we believe

consumers will be more willing to take a ski related survey. In this time period the survey will

have the most relevance to both the consumer and also to Rossignol. We have allocated a gener-

ous five months in order to provide ample time to collect the desired 500 samples from the four

major cities in the Czech Republic.

4.9 REPORTING

We aim to report our finding in a published report which we will deliver to the Rossignol sales

and marketing team. Additionally, we will present our recommendations and findings in person

at the quarterly review.

5.0 COST AND FEES

The cost of the research will result largely from the paper survey. We will need a minimum of

500 completed copies. The cost incurred to buy and print the materials will total around $100-

200. In addition, there will be the cost of travelling to other cities within the Czech Republic.

VI. RESULTS AND DATA PRESENTATION

We anticipate that the data collected from our questionnaires will reveal certain characteristics

about the ski market in the Czech Republic that will be of great use to the sales and marketing

department of Rossignol. We expect the data to reveal a new target market within the university

student segment. In addition, our survey of existing customers should uncover the degree of

brand loyalty and the potential to cross-sell. We will present our findings in a written report that

will be available online. Further we will be presenting to the marketing and sales departments at

Rossignol.

5.2 CONFIDENTIALITY

The names of the participants in the survey will remain confidential. The information obtained

from the existing customers will remain confidential. In order to complete the survey the partici-

pants will sign a statement of agreement and understanding of the implications of their participa-

tion.

5.3 LIMITATIONS

● The lack of funds to expand the range of our sample

● The lack of participation because of competing prioritized tasks

VIII. CONCLUSIONThis report was commissioned to examine the profit potential within the market of university stu-

dents as well as uncover the degree of brand loyalty within former Rossignol customers within

Prague, Brno, Ostrava, and Pilsen. We determined the buying potential from university students

for Rossignol ski equipment through use of questionnaire and pilot survey. The research draws

attention to the fact that in 2014 the market share in Rossignol was 40% and the size of the ski

and snowboard industry within the university segment was 5%. Over the past year there was a

2% increased demand for Rossignol products within the university segment. Further investiga-

tion revealed that 90% of Rossignol consumers were satisfied with their products and would buy

from Rossignol again. This reveals there is strong brand loyalty among Rossignol consumers in

the Czech Republic. Based on our findings we can estimate the growth potential within the

Czech Republic market for ski equipment and therefore help predict Rossignol’s future prof-

itability. The quantitative data collected will show growth potential of the ski industry and poten-

tial to cross-sell while the qualitative data will reveal the interest of in ski equipment and apparel

in the market.

6.1 RECOMMENDATIONS

It is recommend that Rossignol target its advertising efforts toward university students through-

out the Czech Republic as well as re-define its brand image to connect with this younger seg-

ment. We suggest Rossignol launch a campaign at major universities in Prague, Ostrava, Pilsen

and Brno that feature ski products endorsed by popular athletes to attract this group. Further, cre-

ating loyalty programs and online student discounts will help penetrate this segment. We further

recommend Rossignol promotes their new product line heavily toward former Rossignol cus-

tomers.

IX. Works Cited

Gale, Thomas. "Skis Rossignol SA." Encyclopedia.com. HighBeam Research, 01 Jan. 2002.

Web. 03 Nov. 2015.

Gall, Meredith Damien, Walter R. Borg, and Joyce P. Gall. Educational research: An introduc-

tion . Longman Publishing, 1996.

Kravitz, Len. "Understand Research." Understand Research. IAFC, 1997. Web. 09 Dec. 2015.

Marquardt, Katy. "Burton Snowboards: King of the Hill." Money: US News. US News, 19 Sept.

2008. Web. 3 Nov. 2015.

Masia, Seth. "100 Years of Rossignol." 100 Years of Rossignol. International Skiing History, 1

Jan. 1995. Web. 04 Nov. 2015.

Nimmo, Kieran. "The Story Behind Salomon Skis | WinterBadass." Winter Badass. N.p., 2015.

Web. 03 Nov. 2015.

Reingold, Jennifer. "Burton Snowboards." Fast Company. Fast Company, 01 Sept. 2006. Web.

03 Nov. 2015.

"Rossignol's History." Rossignol. Company Rossignol, 2007. Web. 3 Nov. 2015.

"Rossignol: Skiing, Snowboarding, Ski Boots, Helmet, Goggle, Ski Wear."Contact Us Help.

Facebook, 1 Jan. 2007. Web. 04 Nov. 2015.

Rice, Chris, and Chris Rice. Glossary. Understanding Customers. 2nd ed. Vol. 1. Oxford: Butterworth-Heinemann, 1997. 1-12. Print.

"Saloman History." ABOUT US. Saloman Company, n.d. Web. 3 Nov. 2015.

Thomson, Gale. "Skis Rossignol SA." Encyclopedia.com. HighBeam Research, 01 Jan. 2002.

Web. 04 Nov. 2015.

O'Reilly, Lara. "Rossignol Launches First Loyalty Programme." Marketing Week (Online Edi-

tion) (2013): 7. Business Source Complete. Web. 12 Dec. 2015.

Aaker, David A., and Kevin Lane Keller. “Consumer Evaluations of Brand Extensions”. Journal

of Marketing 54.1 (1990): 27–41. Web.