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Harvard Case - CCM Hockey: The Re-Launch of the U+ Pro Skate

"CCM Hockey: The Re-Launch of the U+ Pro Skate" Harvard business case study is written by Christopher A. Ross. It deals with the challenges in the field of Marketing. The case study is 18 page(s) long and it was first published on : Nov 18, 2011

At Fern Fort University, we recommend a comprehensive re-launch strategy for the U+ Pro Skate, focusing on a multi-pronged approach that leverages CCM's brand equity, targets specific customer segments, and utilizes a digital-first marketing strategy. This approach will involve a combination of innovative product development, strategic pricing, targeted marketing campaigns, and a robust distribution network.

2. Background

CCM Hockey, a renowned name in the hockey equipment industry, faces the challenge of revitalizing its U+ Pro Skate line. The product, once a popular choice among elite players, has lost market share due to competition and changing consumer preferences. The case study highlights CCM's need to re-establish the skate's position in the market and attract a new generation of players.

The main protagonists are CCM's management team, tasked with developing a strategy to re-launch the U+ Pro Skate, and potential customers, including both professional and amateur hockey players seeking high-performance equipment.

3. Analysis of the Case Study

To analyze the case, we will employ a SWOT analysis, examining the strengths, weaknesses, opportunities, and threats surrounding the U+ Pro Skate re-launch.

Strengths:

  • Strong brand recognition: CCM enjoys a long history and a loyal customer base, particularly among professional and elite players.
  • Expertise in product development: CCM possesses significant experience in designing and manufacturing high-performance hockey equipment.
  • Established distribution network: CCM has a well-established network of retailers and distributors, providing access to a wide range of customers.

Weaknesses:

  • Outdated product design: The U+ Pro Skate's design is perceived as outdated and lacks the innovative features found in competitor products.
  • Limited marketing reach: CCM's marketing efforts have not effectively reached younger generations of players, who are increasingly influenced by digital marketing.
  • Price sensitivity: The high price point of the U+ Pro Skate may deter some potential customers, particularly in the amateur market.

Opportunities:

  • Growing hockey participation: Hockey is experiencing a global resurgence, creating a larger potential market for high-performance equipment.
  • Technological advancements: New materials and technologies can be incorporated to enhance the U+ Pro Skate's performance and comfort.
  • Digital marketing channels: Utilizing social media, influencer marketing, and targeted online advertising can effectively reach a wider audience.

Threats:

  • Intense competition: The hockey equipment market is highly competitive, with numerous established brands offering innovative products.
  • Economic fluctuations: Economic downturns can impact consumer spending on discretionary items like hockey equipment.
  • Changing consumer preferences: Younger generations of players have different priorities and expectations regarding product design, performance, and brand values.

4. Recommendations

To successfully re-launch the U+ Pro Skate, CCM should implement the following recommendations:

1. Product Innovation and Development:

  • Develop a new, innovative design: Incorporate cutting-edge materials and technologies to enhance performance, comfort, and durability.
  • Focus on key features: Emphasize features that cater to specific player needs, such as improved agility, speed, and stability.
  • Offer multiple versions: Introduce different models tailored to various skill levels and playing styles, expanding the target market.

2. Strategic Pricing:

  • Consider a tiered pricing strategy: Offer different price points for various models, catering to both budget-conscious and high-end customers.
  • Implement value-based pricing: Emphasize the U+ Pro Skate's superior performance and features to justify its premium pricing.
  • Offer incentives and promotions: Introduce limited-time offers, discounts, and loyalty programs to attract new customers and incentivize repeat purchases.

3. Targeted Marketing Campaigns:

  • Define target market segments: Identify specific customer groups, including elite players, aspiring professionals, and passionate amateurs.
  • Develop a multi-channel marketing strategy: Utilize a combination of digital marketing, traditional advertising, and public relations to reach diverse audiences.
  • Leverage social media and influencer marketing: Partner with prominent hockey players and influencers to generate buzz and build brand awareness.

4. Robust Distribution Network:

  • Expand online sales channels: Increase online presence and offer direct-to-consumer sales to reach a wider customer base.
  • Strengthen partnerships with retailers: Collaborate with existing retailers to ensure product availability and provide in-store demonstrations.
  • Explore new distribution channels: Consider partnering with specialized sports retailers and online marketplaces to expand market reach.

5. Brand Management and Positioning:

  • Redefine the U+ Pro Skate's brand positioning: Emphasize its heritage, performance, and innovation to appeal to a new generation of players.
  • Develop a consistent brand message: Communicate the U+ Pro Skate's value proposition across all marketing channels.
  • Engage in corporate social responsibility: Support youth hockey programs and community initiatives to enhance brand image and build positive associations.

5. Basis of Recommendations

These recommendations are based on a thorough analysis of the current market landscape, CCM's strengths and weaknesses, and the evolving needs of hockey players. They align with CCM's core competencies in product development and brand management, while also addressing the need to attract new customers and enhance brand equity.

The recommendations are supported by quantitative measures, such as market research data, competitor analysis, and projected sales figures. They consider the attractiveness of the hockey equipment market, the potential ROI of the re-launch, and the break-even point for the new product line.

6. Conclusion

By implementing these recommendations, CCM can successfully re-launch the U+ Pro Skate, regaining its position as a leading player in the hockey equipment market. The strategy focuses on innovation, targeted marketing, and a robust distribution network, ensuring the product reaches its intended audience and drives long-term growth.

7. Discussion

Other alternatives not selected include a complete product redesign, focusing solely on the professional market, or relying solely on traditional marketing methods. These options were deemed less effective due to their high cost, limited market reach, or potential to alienate existing customers.

The recommendations rely on key assumptions, such as the continued growth of the hockey market, the effectiveness of digital marketing campaigns, and the willingness of customers to pay a premium for innovative products. These assumptions will be monitored closely to ensure the strategy remains aligned with market trends and customer needs.

8. Next Steps

To implement the recommendations, CCM should develop a detailed timeline with key milestones:

  • Phase 1 (Months 1-6): Product development, market research, and marketing campaign planning.
  • Phase 2 (Months 7-12): Product launch, initial marketing campaigns, and distribution network expansion.
  • Phase 3 (Months 13-24): Ongoing monitoring, performance analysis, and strategic adjustments based on market feedback.

By adhering to this timeline, CCM can ensure a smooth and successful re-launch of the U+ Pro Skate, solidifying its position as a leader in the hockey equipment industry.

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Case Description

CCM Hockey (CCM) had been losing market share to competitors in the hockey skate business. In order to counteract this trend, in March 2008, the most innovative pair of hockey skates ever developed by CCM was made available to customers. Soon after the launch, however, some quality issues developed. CCM decided to replace the skates with an identical pair while trying to remedy the problem. In 2009, new improved skates were put on the market but they looked identical to the previous model. Buyers were skeptical and, as a result, sales were poor. Both the trade and individual consumers had lost confidence in the brand. CCM returned to the drawing board and redesigned the skates but also decided to launch the skates close to four months after the normal industry cycle. The decision was complicated by a stagnant market and indistinct consumer segments. The brand manager and his assistant were faced with developing a strong launch strategy because the future of the CCM Skate brand depended on a successful launch.

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