Executive Summary
In the US, several states are experiencing long winter seasons, making the mobility of people to access remote regions impossible. Similarly, the country promotes recreational sporting activities, which influence people to purchase most of the products used in such events. Therefore, it presents an opportunity to export the Bombardier Recreational Products into the country. The market size of the snowmobile industry is improving, indicating potential gains when invested in. the development and level of middle-class families with adequate disposable income show the viable market for the company. Putting into consideration the features of the product, promotion, advertisement technique, channels of distribution, and nature of completion in the region, it will be appropriate to export the machines to the US market.
The Product
In the early days before the invention of the Ski-doo, the movement was problematic in most areas that experience extreme winter seasons. It became challenging for individuals to traverse remote regions of Alaska that experience icy cover with a temperature of about -50 Fahrenheit. The production of Ski-doo has made the situation better because the product can maneuver the challenging terrains. Ski-doo provides a more reliable mode of transport since it has a wide space than its competitors. The commodity allows for easy interoperability making it more compatible. Ski-doo is less complex, and its body parts are apparent, allowing the user to operate with ease. It has a broader tad board and a number of current technologies embedded in it. Furthermore, the industry offers people the chance to experience the product before purchasing it. The nature of Ski-doo makes it visible hence consumers can easily share it and the idea of adoption.
The company faced consumer resistance previously following the failure to meet the expectation of clients. Generally, most customers expected the functionality of the Ski-doo to meet their target; however, the product was more sporting. This made it challenging for another group of people to purchase the new arrival in the market. It did not match the needs, such as carrying heavy commodities through the icy condition.
The Market
The geographical region selected for the Ski-doo products is Alaska in the US. Generally, the weather condition experienced in Alaska takes a long season with blankets of white snow. In this location, the snow is most common in the places that are less inhabitable, having a temperature of -50 Fahrenheit. The area’s forms of transport include the Alaska railroad, highway vehicles, boats, snowmachines, and off-road cars. However, following the long duration of icy coverage, some of the methods are inefficient and cannot allow people to reach remote places.
In the region, consumers prefer buying commodities for both recreational and transport. They purchase during winters when the weather pattern does not favor other means of locomotion and when there is adequate snow for sporting activities. The product has some specific features that make it reliable and suitable for the people of Alaska. First, it has Skis that bend in an upward direction to stop the machine from submerging into the snow. Furthermore, the skis handle allows the operator to maneuver the terrain effectively. The shock absorbers enable riders to feel less bumps during the ride. Individuals prefer buying products that meet their expectations, and in most cases, they purchase from motor dealers. The products can be distributed through wholesalers, where consumers can access them with ease.
In the market for snowmobiles, the products are advertised through relevant sporting events to showcase the effectiveness and reliability of a given brand of product. In addition, the companies use platforms such as TVs, Radios, and social media to promote the image of commodities (Voorveld, 2019). In the industry, dealers use the penetration price strategy to enable them to compete effectively with the available competitors in the market.
Competitor
The key competitor of Skidoo in the snowmobile industry is Polaris. Its brand name is known as the PRO RMK AXYS in the market. Key features of the product include instantaneous lift due to the powerful engine and track design. It has raised platform to keep the rider on top of the snow. Furthermore, the machine has a rear suspension that facilitates weight transfer and better control. It has options for multiple drive systems and rider-balanced control and is lightweight. The company’s packaging includes a slot mount, drive belt, ice scratchers, and racer edge. The prices of Polaris brands vary depending on the type of machine; however, they range from $9,000 to $16,000. The company advertises its product using national TV, print, digital platform, and ads. They give offers to buyers who purchase the machines at a given specific time of the year. The organization uses both offline and online distribution channels.
The Market Size
On average, the industry sales of snowmobiles are relatively high. In the country, there were over 59,000 snowmachines sold which indicates about a 16% increase. Based on the statistic, Ski-doo is estimated to attain net sales of 23,000 snowmobiles.
Government Participation
Some of the government agencies that can facilitate the importation include Federal Transportation Funds Benefits Recreation, Recreational Trails Program, and Federal Transportation Enhancement Activities. The imposed regulations in the country are payment of tariffs, adhering to consumers’ safety, and contacting Customs and Border Protection bodies.
The Marketing Plan
Target Market
The target market is the male population between the age of 25 to 46 years and having a disposable income of $20,000. The segmentation base will include engine type, engine size, product type, and seating capacity. The group prefers adventuring and recreational activities; hence will be able and willing to purchase the machines that offer them a comfortable ride.
Marketing Goals and Objectives
Key marketing goals include maintaining customer satisfaction, attaining more online reviews, increasing website interaction, adopting social media tactics, locating trends in the market, launching new products, and encouraging in-person promotions.
SWOT Analysis
The Skidoo snowmobile is enjoyable and offers greater ecological validity. It requires less capital to produce and hence can be cheap to produce. The area that needs improvement is the ability to loop during the action. Its price presents an opportunity for buyers to afford and use it. It can accommodate a moving video rather than a stationary one. Lastly, it can increase motion sickness amongst female riders.
Product Adaptations
Ski-doo machines will deliver a great taste of ride with maximum safety measures. It will be packaged and labeled as ‘designed by riders, for riders.’ Furthermore, it will entail contacts and details of the company, which buyers can use to reach the organization for queries and support. It will contain a basic description of Canada to show how effective the machine can be when dealing with deep snow.
Promotion Mix
Advertising
The product will be advertised through TVs, print and digital media, social media, ads, and direct emails platforms. The aim is to reach many customers in the market and create awareness of the brand. It will cost the company about $3,000 to conduct the advert (Ali & Anwar, 2021). The message will be ‘Explore Extreme Ends of Alaska.’ The advertisement will be communicated in English, French, German, Chinese, and other main languages to limit misinformation. The ads will be precise and ethical in nature to avoid possible legal concerns. Skidoo will partner with Pittsburgh SEO Services Company to enhance local marketing.
Sales Promotion
The reasons for sales promotion will increase the demand of potential buyers, stimulate the market, raise the size of purchases, and increase the availability of the machines. The company will engage in activities such as conducting recreational events, annual competitions, and offering discounts. Moreover, the corporation will use salespeople to persuade customers to purchase the products. Lastly, Skidoo will be displayed in large burners across the country with adequate description to inform people.
Channels of Distribution
In the US, the distribution structure is mainly indirect; however, a firm can choose to use the direct approach. The company will rely on the retail channel where customers will be able to access the product. They will mainly be supermarkets, departmental and warehouses which are large in size to accommodate a significant volume of the machines. The middlemen will be retailers, about 20 in the country. They will manage the operations within the facilities, whereas the company will focus on controlling the channel.
Logistics
The products will be transported by roads, railway, and air. Each container will be labeled with the serial number of the respective product. The machines will be stored in warehouses, and custom-duty documents will be needed to avoid complications with authority.
Price Determination
The company will use the penetration price strategy in the market. The primary pricing tactic that will be used is offering a discount to customers. Factors such as transportation costs, increased tariffs, and rising costs of inputs may escalate the charges. In such cases, the company will charge its product at the average between the initial and final prices.
Pro Forma Financial Statement
For Bombardier Recreational Products in ($)
Pro Forma Annual Profit and Loss Statement
References
Ali, B. J., & Anwar, G. (2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. International journal of Rural Development, Environment and Health Research, 5(2), 26-39.
Voorveld, H. A. (2019). Brand communication in social media: A research agenda. Journal of Advertising, 48(1), 14-26.