In 1997, the Adidas-Salomon group was formed as a result of the fusion of three brands: Salomon, Adidas and TaylorMade. This group represents 14,000 employees worldwide. The strength behind this association is the global presence of Adidas-Salomon in more than 60 sports, and its distribution of products in 160 countries.
Salomon is an international firm which is implanted in several countries.
However, we can see that this brand is mostly established in Europe. Salomon's sales represent 64% of its turnover in this geographical area.
The second main market for Salomon is North America with only 25% of its sales. This market represents the biggest blackhead of this company. For example, at the end of 2003, the order book of Adidas-Salomon showed a 31 % recession in nominal value with regard to the same period in 2002, and only 18 % was free from the effects of exchange. Indeed, the competitors were more implanted in the US, and were very profitable and mature. Hence, the lone way for Salomon to increase its market share was to stay focused on this market via Adidas. Finally, Asia and South America represent only 11% of Salomon's sales in the world market.
From 1985 to 2002, the turnover of the ski market had witnessed a huge increase from 75 billion euros to 160 billion euros. However in 2002, sales began to be directed downwards.
In this market, there are three different actors who share themselves as a primary component of this market:
Salomon was the primary one, with 492 million euros in 2002 in Winter (684 millions of euros at the end of the year), Rossignol is the second one with 468 million euros (in Winter) and Atomic was the last one and was placed in the third position in the market of the equipment of the winter sports. It recorded a turnover of some 200 million euros , and expects a stagnation of the world market in 5 million units .
The sales of snowboards are not expected to increase (1.7 million units approximately), as it faces some difficulties in the Japanese market, especially after the effects of September 11 attacks that slowed down the American economy.
Salomon and Rossignol aim at being a reference brand in each segment of practice (from Racing to Freestyle. This strategy has been quite successful, thanks to its innovative products. However, as they are not specialized, their image is very broad in the middle segment. We can see that Armada is very small and is highly specialized in Freestyle/Freeride. This is the typical example of a "core brand". Therefore, when a young customer will look for freestyle skis, he will be more confident in buying Armada skis.
[...] The strength of their team rests on legends like Candide Thovex, as well as revelations from last season like Simon Dumont The weakness is the fact that Salomon is financially limited as the following example demonstrates. Candide Thovex received an interesting offer from Rossignol and Salomon did not want to outbid an offer made by one of its competitors. If Salomon had acted otherwise, it would have endangered its entire team and more particularly young talents, by mobilizing an unreasonable sum for the only one of their icons. [...]
[...] Growing European brand Salomon is an international firm which is implanted in several countries. However, we can see that this brand is mostly established in Europe. Salomon's sales represent 64% of its turnover in this geographical area. The second main market for Salomon is North America with only 25% of its sales. This market represents the biggest blackhead of this company. For example, at the end of 2003, the order book of Adidas-Salomon showed a recession in nominal value with regard to the same period in 2002, and only was free from the effects of exchange. [...]
[...] For example, when Salomon launched its new Crossmax skis, it organized a Skiercross championship to promote this new type of skiing. The events are strategic as they gather at the same place the firm, the product, the riders, the audience and sometimes the media. To be sure so as to have a report on these events in the media, the firms use content providing. During each event that it organises, the brand records a lot of images. When TV channels want to broadcast a report about the event, they ask the brand whether to send those images or even to mount it and send a “Ready-To-Broadcast” (final version of the report). [...]
[...] The aim of our communication strategy is to have the best skiers riding Salomon skis. If a skier sees good skiers with Salomon skis, then he will have a positive and qualitative image of these skis. Customized cars Having cars designed with the brand logos on them is a very trendy communication tool. This is used especially during events, where the cars move all around the resort. To be more efficient, the brands have to use cars that reflect an image in accordance with the brand image. [...]
[...] large consumption products and we do not remember them afterwards Radio Negative effect: not appropriated for Salomon which needs visual adverts Low impact Cinema Adverts before Not targeted Positive effect movies for young enough, no return They see the Low impact people (people do not advert only one Good for image look at them) time because of the presence of the big screen MOVING Can touch a lot Cars are seen Medium impact Customized cars group if the cars times during an depends on the in the colours of are shown during event of a couple quality of the the company a ski event , of days car for the image otherwise it is a of the brand waste of time and money People It can touch a T-shirts and High impact Or GIMMICKS lot of people on other accessories Positive effect Gifts such as our target if it can be worn because gifts are T-shirts, bags, is done during a several times appreciated caps, beanies ski competition The targeted or event group then represents the brand by wearing the Salomon clothes PAPER Targeted if If the poster is Medium impact Posters distributed put on the wall Positive effect during ski event in the rooms of Poster is part of or in specialized persons from the the daily life press as an target, it will and environment additional gift be seen everyday Identification to the brand Catalogues Targeted, if put The catalogue is High impact in because the times making because it target often come The target spends gives a lot of to these stores a lot of time to information about read it, dreaming the products of the future Good image equipment they wish to have INTERNET The targeted Depends on the High impact Corporate website group, as other structure of the The image of the young people of site: if there brand depends on their generation are goodies, the quality of often go on forum, etc, the the site Internet target will stay longer website such as people subscribed and spend several because a lot of websurfers are brand part of our target In conclusion, we think that, according to the RFI analysis, the most suitable media for Salomon to reach its objective of being the spotlight of the ski sector could be: Specialized press on ski or freestyle culture Moving vehicles, people, gimmicks and posters can be effective in a case of a ski event situation Catalogues Internet : both the Salomon's site and other specialized sites on ski B2C The first communication tool is public relations. [...]
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