1. Jennifer Johnson David Sikora Matt Dufour 10/21/2014
2. AGENDA About VOLCOM 4Ps, 5Cs, STP SWOT Competition Core
Problem Possible Solutions Critical Issues Recommendation 2
3. ABOUT VOLCOM Board sports apparel brand (Surf, Skate, and
Snow) Born in California in 1991 Vecco Music Label Unapologetic;
Mantra: youth against establishment Founders: Richard Woolcott,
Tucker Hall First year sales 1991: $2,600 IPO June 30, 2006: $89.1
million Purchased by Kering May 2011: $608 million Promotes through
sponsorships, events, print ads, music, film, retail stores, &
online 3
4. PRO-RIDERS AS CREATORS Musicians, Designers, and Riders
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5. 5Cs of VOLCOM Customer Direct to Consumer, Independent
Retail, Licensees Competitors Action sports based companies (ex.
Vans, Billabong, etc.) and Action sports divisions (ex. Nike SB)
Collaborators The Core; industry insiders with geographic target
areas; specialty apparel manufacturers Context Sells VOLCOM brand:
youth against establishment Company Division of Kering:
multinational apparel and accessories 5
6. STP MARKETING PROCESS Skateboarders Surfers Snowboarders 6
Segmenting Targeting Positioning Pro-skaters/boarders Subgroups The
Core Youth against establishment True to this Authenticity
7. VOLCOM SALES TRENDS United States Europe All Other 2006 $158
$5 $39 2007 $174 $40 $51 2008 $196 $78 $58 Sales (millions) 7
Volcom products can be found in the United States, Europe, Canada,
Latin America, Asia Pacific, and Puerto Rico 2013 Total Revenue
anticipated decline of 6.2% to $254MM
8. VOLCOM SWOT Strengths Opportunities Connection to target
market Recognized Authenticity Diversified sales model Global
presence Increase presence in non-traditional geographic markets
Development of more established collaboration Enhance cross-over
between clothing and non-clothing offerings Weaknesses Threats Fast
paced trends/taste industry Little control over manufacturing
Consolidation in independent retailer market Changing sports trends
to non-3S Social acceptance of foundation of Culture 8
9. NIKE SB SWOT Strengths Opportunities Strong Brand
Recognition Core Sponsors Innovative ie Flash Pack Customizability
Shoe quality Collaborations with outside designers for more unique
designs Bring back old styles generated toward skateboarders that
got Nike started in SB Weaknesses Threats Mainstream Not authentic
board brand Independent Board Brands 9
10. NO FEAR Authenticity is everything No core target from
inception Poor supply chain management lead to over- production
Brand diluted through lack of focus If you dont know where you are
going, any road will get you there. Lewis Carroll 10
11. VOLCOMS AUTHENTICITY Not over-extended Core values stem
from passionate owners Sponsor with creative innovators ie Ozzie
Wright Stick to their core values and mantra CORE PROBLEM: How does
VOLCOM maintain the Authenticity that drives brand value, while
continuing to drive value for stakeholders? 11
12. GOING FORWARD 1. Hyper-Localize Allow individual markets to
operate independently as free-players under the VOLCOM brand 2.
Hyper-Globalize Leverage resources of Kering to expand presence in
international markets and economies of scale 3. Hybrid Provide
resources and business expertise to local markets, but allow local
VOLCOM brands to channel the directions of their local tribes
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13. CHANGING TRENDS The Core Sponsored professionals Look down
on newcomers Develop fashion trends The Middle Ground Committed to
skateboard lifestyle part-time May have family/job/school Periphery
New to the sport May not participate Wannabes 13
14. SKATEBOARDING TRIBE Group of individuals that identify
themselves based on a shared commitment to a particular product,
brand, or activity 14 1. Ethos and Values 2. Risk-Taking 3.
Individuality
15. SHOPPING EXPERIENCE Blogs centered on underground
skateboarding videos, bridging the culture gap, and pro skater
coverage Artistic designs on boards and apparel DVDS & Music
Passionate Team if you love skateboarding and dont care about the
rules WELCOME! Contemplate your power as an individual
16. TRIBE SUBGROUPS 16 HessianHip Hop PunkMetal
17. POSSESSED TO SKATE 17
18. DAVID GONZALEZ Metal Subgroup Long hair Leather jacket
Black clothing Satanic symbolism Heavy metal music Behavior and
Attitude Positive attitude High energy Adrenaline Risk-taker
Persistent Creative Innovative Authentic Inspirational Pure Natural
talent 18
19. Recommendation Allow local subsidiaries to take advantage
of a hybrid local/global model VOLCOM global as a resource and not
a new establishment VOLCOM centrally develops catalogue that local
markets can either pull directly from or pull inspiration from
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