Reference no: EM133342808

Case: Newman West Sportswear Russ Lipinski was pleased and proud. He was returning to his desk after a meeting in which he and his manager had together conducted his six-month performance review. His manager, Jennifer Pinewood, told him that, based on his performance to-date, she believed he was senior management material. Russ had joined the firm, Newman West, three years before as a marketing assistant to Jennifer who, at that time, was the marketing manager for the Winter Sports division. By the end of that first year, Jennifer was promoted Vice-President of marketing for the entire company. Two weeks after her promotion, she asked Russ to meet with her. Russ had learned a great deal about marketing from Jennifer in the time they had worked together, and he had been disappointed to lose her as his manager.

But he was shocked when Jennifer asked him to consider replacing her as the marketing manager in charge of the Winter Sports division. He was not at all sure he was ready for such a big move and told her so. Jennifer responded, "This promotion is a little early for you, but I believe you can grow into the job. Plus, I'll be available to guide you for the first couple of months." Russ did grow into the job even more quickly than even Jennifer had expected. He was particularly talented at anticipating and responding to new marketing opportunities. He had a sixth sense for seeing new trends and for grasping their implications for winter sports before any of his competitors did. Jennifer particularly noted Russ's skill during the performance appraisal. But Russ also knew that his next marketing initiative would either confirm or end his career at Newman West. His most recent marketing initiative was the launch of snowshoes into the Canadian market. Actually it was a relaunch. Newman West had introduced this product several years ago (before Jennifer's time) and withdrew it from the market just two years later. The company's documents from that venture are almost ten years ago and also incomplete, but Russ's best understanding was that initial demand was small and that the snowshoes never grew into a viable opportunity. The documentation indicated several reasons for the weak demand: (i) economic conditions did not favour it, (ii) an unknown winter sport, (iii) people were unwilling to make an investment to try something they might not enjoy, (iv) young people (the primary target audience) had little interest. His idea now was to position 'SnowBuster' snowshoes as the newest winter sport in Canada, with an entirely new and modern image targeted to active people in the 40- to 60-years age group.

Two important elements of his strategy would be: (i) a new design that incorporates the most recent discoveries in efficient body movement and (ii) a promotional campaign focused on a different target market. Obviously he had not developed a comprehensive marketing plan yet, but these were his initial ideas. Russ believed his most immediate task was to examine the old research and combine it with new research of the external environment to understand which various factors (internal as well as external) would affect his snowshoe launch. Russ needed to analyze the reasons for the initial failure and determine what had and had not changed during the past ten years. One of the initial reasons for his cautious approach for this snowshoe relaunch was the conflicting (secondary) data he had collected regarding the Canadian population. Specifically: - 60-80 year old; market is too small. But this segment has the funds to make the purchase and try the sport on a minimal level. - 40-60 year old; market is large and the segment has the funds to make the purchase and try the sport. This segment is were seeking sports with a low chance of severe physical injury, but still have a lifestyle that incorporates physical exercise into everyday life, not just one that meant a trip to the gym in order to achieve an elevated heart rate. - 30-40 year old; market is large and the segment has the funds to make the purchase and try the sport. But this segment is focused on career management; its idea of exercise is a quick a trip to the gym.

This segment is not willing to commit the time and effort for a day-long winter sport activity. - 15-30 year old; market is the largest segment has the funds to make the purchase. But they are focused on their smartphones. Physical exercise is a foreign concept unless it can be connected to being part of a trendy social event. Even so, losing cellphone coverage on a snow trail in the woods would convince this segment to try it only once (and heavily criticize it on social media). - Geographic issues - not all areas get sufficient snow. - Urban issues - is the target audience willing to travel to the best snowshoe trails? - Weather - is the season long enough to justify the purchase. - Cultural - is training required? - Legal - a young girl had been ice-skating on a backyard rink and somehow managed to severely cut her lower left leg with her own skate-blade when she fell down.

The family claimed that the skate construction had contributed to the accident and had accordingly filed a lawsuit. The incident had received national media attention and damaged the company's reputation. Russ started wondering about the legal issue of new snowshoe users being injured on isolated winter trails.

Finally, Russ was concerned about the initial receptiveness of the marketplace. Were there internal/external factors that favoured his plan? Had he overlooked anything or perhaps underestimated the significance of any possible future factor? Russ has some decisions to make.

Question 2: Define current situation (ie: problems/opportunities, issues, etc.) as you see them.

Question 3: State (what you see as being) the key Problem.