Bro Model Skis: Marketing Strategies

[DerJaeger]

Splat mentioned in another thread that PMGear hasn't exactly been raking in the big bucks, and since marketing and business strategy is something I have a big interest in, the discussion got me thinking about how PMGear could could sell more Bros, more profitably.

Let me preface this by saying that I know pretty much nothing about how Bros are currently being promoted and sold, and I am not well versed in the history behind these skis. So I apologize in advance if I suggest things that have been tried, are being done, and/or are contrary to the spirit of the whole venture.

As I see it, the two main competitive advantages of Bros is image (the association between Bros, Maggots and big mountain skiing is something that no other ski manufacturer can easily duplicate) and superior performance. So given this, what could PMGear do to take things to the next level? Here's my ideas:


Refine positioning

Every sucessful company has a strong position - that is, their offerings, culture, brand, etc convey that the company fits a certain niche. Good examples that come to mind include Patagonia, Black Diamond, Arc'Teryx and Santa Cruz.

Is the current positioning of PMGear and Bros well-defined? Is it connecting with the desired target market as well as it could? There are a number of different positions that PMGear can have -- they might choose to differentiate themselves as the company that sells "gear made with the input a community of passionate freeride skiers" or perhaps it might simply be positioned as selling the "gear for truly gnar skiing".

Whatever it is, it's important to be focused on that position. Looking at the PMGear website, I get a feeling they might benefit from stepping back and reviewing their positioning.

Smart marketing

Like every small company, PMGear needs to make ever dollar count in marketing. Fortunately, they do have one thing on their side: the internet has reduced the cost of reaching diffuse niche markets such as those interested in backcountry and freeride skiing.

I suggest a make-over of the PMGear site that includes a regularly updated blog that covers topics of interest to Bro skiers, trip reports involving Bros, galleries with images featuring Bros, and more. Connect with the target market by providing info they value and keep coming back for. These forums function in that way, but let's face it, not everyone is comfortable with (or has the time to use) these forums. Perhaps the blog could even simply be a "best of TGR forums" thing.

People who ski Bros are passionate about the product. Help them spread that passion. Ship Bro/PMGear stickers with each ski. Ship a small stack of promotional business cards that they can hand out to people who want more info about Bros. When people ask about them on the chair -- that's marketing Atomic, K2, et al would kill for.

Direct sales isn't the only sales channels of course, but given the type of market, it's the most profitable channel.

Product augmentation

People don't just buy a product, they buy the whole package. Part of the package with Bros is these forums, the level of support from the PMGear guys (which, honestly impresses the hell out of me), etc. Augmentation can allow companies to charge a premium for their products even when they're inferior in some way (which Bros aren't - I simply mean that the right kind of augmentation can be suprisingly powerful competitive advantage).

Perhaps there are other forms of augmentation that would be especially valuable to the target market. For example, maybe a super good deal on Str8line camps? Or maybe just something that helps the owner feel connected with the industry in a special way? An automatic invite to the world-famous exclusive Bro Pimp 'n Bro party? There's tons of possibilities, but the key is that they be things that aren't expected and are yet valuable in differentiating Bros as per the chosen position.

Refine pricing strategy

I don't want to get too deeply into this here since it's a complex topic that requires a lot of information that I don't have, but basically if PMGear has a highly differentiated product, they may be able to charge a bit more for it. Generally, one can charge more for a highly differentiated products as long as it's price does not exceed the value of that differentiation. The tricky part is figuring out what the differentiation is worth. It might even be zero if the target market is highly price sensitive (and I know many of us are, myself included).

In any case, performing a financial/pricing analysis is very worthwhile, if only because it can provide new insight into the fundamentals of any business.

I hope this at least puts a few useful ideas out there, because I'd love to see Splat et al be awesomely successful with PMGear.

[Blurred]

They need to build their skis in the Summer, and have them ready in the Fall when people are stoked on skiing. Recieving skis in February is pretty retarded for most people.

[powder11]

one word:

China

[schindlerpiste]

1) Spancer free western summer mountain town events like Mountain Town Stages Summer Concert Series in Park City. I'm sure there are similar events in Aspen, Breck, Tahoe, Vail, Jackson, etc. It's cheap, it's full of young skiers and you get the name out.

2) Place a few pair of skis in western resort shops, and in Main Street shops.

3) Tee Shirts; stickers; website with a chatroom.

I guess you can tell that I'm not in marketing.

[Red Baron]

Correct me if I'm wrong, but I don't believe the problem has been selling skis; rather it's been making them.

[XtrPickels]

RB-I believe you are right for years past... even blems have been selling out.

Blurred also has a point about making skis ahead of time, which got me to thinking... how many skis should them make? By making them in the winter, they've had orders in, so they can judge the need.

Hopefully they can secure a press and other needed items so that they can produce their own... Kingswood presses them with each order correct? It'd be nice to do it in house like that.

My main question concern is the limited marketing... who are they going to be selling skis to next year? the year after? It seems that most of the people on the board interested in bro's have gotten them. Their main clientel is almost kicked and unless they come out with a new shape, i fear sales to mags will start to plummet.

[Blurred]

Blurred also has a point about making skis ahead of time, which got me to thinking... how many skis should them make? By making them in the winter, they've had orders in, so they can judge the need.

They need the money up front to produce the skis. That's the problem. Financial backers must not be too strong.

[skiguide]

Der Jaegar,

Thank you sincerely for your thoughts on our marketing and general business strategy, which of course been discussed here many times before.

as an 'open source' company we're always willing to listen to the thoughts, wants, needs of our target customer base. That truly is, the very core of PMGear's business strategy.

To address your particular points in short form:

1) You are citing Splat's recent comments regarding cash flow, manufacturing problems and bulging production costs as a result. That has been, and continues to be our biggest issue. We have a market beyond what we're currently producing, and we are well aware of it, but our problems are mainly production related.

as much as we have tried to avoid going overseas, it is a sad reality that China is a possible/probable solution, but along with that decision comes other potential pitfalls.

2) Website - a new form of it has been in the works for quite some time. As a marketer (one who is particularly aware of our main sales platform being the web and all that entails) - trust me, I want to see a new version of it more than anyone.

we've got the pieces and people we need to make it happen, it's just a matter of time available. As a group of people (other than splat) who have regular jobs and other time committments, this has been a hard area to focus on timewise.

3) we did for awhile, ship out cards to hand out with BROs.

[skiguide]

My main question concern is the limited marketing... who are they going to be selling skis to next year? the year after? It seems that most of the people on the board interested in bro's have gotten them. Their main clientel is almost kicked and unless they come out with a new shape, i fear sales to mags will start to plummet.

it's not all that limited - and we definitely see a huge potential market beyond this particular forum. There are other forums out there you know - ttips, epic ski, etc. But that has never been our sole marketing strategy.

may I remind everyone of all the strange looks maggots are getting when they spot someone on BROs and ask for change --- that clearly indicates that there are indeed skiers out there on them who are not part of this community in particular.

we have a had a (more than) reasonable amount of offline, traditional press driving outsiders to the BRO model. and that's a HUGE piece of marketing success that we value as a small company breaking into a very established industry.

[Trackhead]

My main question concern is the limited marketing... who are they going to be selling skis to next year? the year after? It seems that most of the people on the board interested in bro's have gotten them.

I skied down from Flagstaff today, and ran into an infrequent touring partner of mine. He immediately wanted to know what was on my feet. I took the ski off, handed it to him, and he realized how light they are. He will likely be buying a pair of 179's in the future.

It's that easy. You pass someone in a skin track with the "dehydrated piss" colored skis, and people notice them. One comment on the weight, and any touring geek will buy 'em.

[Hunterski]

As has been mentioned above, my impression is that the problem is in the production of the product. I frankly do not see how PM gear can avoid China if they are going to serve interested buyers particularly on this board. It is not enough to simply charge more, many talk about off-shoring production as a negative thing yet our purchasing habits do not reflect the concerns many have. IMHO PM gear is a victim of the growing trade defecit this country faces, I applaud their efforts by trying to make a go of production here in North America, but it obviously has not worked. I expect to see many more "bros" on the hill as PM gear works out their production issues. From a marketing standpoint they have utilized this board in a way that no "fancy" ad campaign in a glossy ski mag could compete with.

[MTT]

The Website is an issue. I refer people to the site fairly often, it is usualy out of date and unimpressive.

If Bro production is moved to China I will no longer be an abvocate of the product.

[Twoplanker]

Interesting comments -- thanks for the input.

About your comment regarding partnering with Str8line's camps: I have thought about this because, in addition to being an owner of PM Gear, I also help Gordy with his business and I'm the webmaster for his site. Trouble is, Gordy has a ski sponsor already.

Other than that, great ideas. I think they are spot on.

[Twoplanker]

The Website is an issue. I refer people to the site fairly often, it is usualy out of date and unimpressive.

If Bro production is moved to China I will no longer be an abvocate of the product.

The website is definately an issue (my work, so I am responsible), one that we are working on resolving. We have a new site in the works. Right now we're spending virtually all our capital on making skis.

Losing some customers because of Chinese manufacturing is a risk that we may have to take if the only alternative is going out of business. Having struggled with two different North American manufacturers, we may be forced to look to China. We're sorry that we'll lose you as a customer if we do that, but at least we will still be in business and still American-owned. We wouldn't do it if we could find a manufacturer in the U.S. that we could rely on.

[m1e448]

I think Bro Stickers with the plane symbol or something MD9 makes up would be awesome. Even if you sold them and just put on or two in with every pair of skis shipped. Maybe not huge for marketing, but definately cool.

I also like the idea of just going around to resorts with demos and having a few of the more commonly requested flexes in the back of you car and just unload them right there.

[MeatPuppet]

If Bro production is moved to China I will no longer be an abvocate of the product.

Booooooooo!

[splat]

Wow!
Der Jaeger - you rock. Thank you.

Thank you for taking the time and being concerned enough about our well-being to offer up some rock solid suggestions based in marketing experience. Right now we are on the cusp of taking charge of production and it looks like it could happen.This will allow us to have skis ready in the fall and crank out new models at will, something that has been painful and costly to do thus far.
We are also closing in on having a source in China and help there to get us going. There are actually a ton of developments that will start to occur as soon as we close out the current run still getting pressed. We might go ahead and make the skis here for another year and see how it plays out.

As for marketing, in a general sense, we have proposed forming an independent ski manufacturers association to some of the other indies for cooperative marketing based on a centralized website and a major ad campaign. It has been quite well-received and the concept will progress over the summer. Once everyone saw the value of working together as opposed to competing, it became a very positive vibe. We might also do joint pprototyping and manufacturing. We are very close to getting that part of the business in our control so we can focus on having enough product to market. Please stay in touch. Your input is right on target and very constructive. Without the help of people like you, the PM Gear dream would not have gotten this far.

[The Suit]

Bro brand recognition seems surprisingly good to me, considering how few pairs are out there. I'd guess there were a dozen times this year when a random person (lift operator, gondola or chairlift rider, etc.) asked me "Which flex are those?"

[BLOODSWEATSTEEL]

Good stuff here. We all want to see PM succeed. Were you at Rose demo day today, Splat?

I talked to THREE non-mags on Bros today @ KW, so word is definitely out!

[splat]

I skied with 4 other people on Bros at the Wood today. As we slid past the lineup onto Chair 4, I heard like three people in the queue go "Ooooh, Bros..."

God, I love that.

[Cono Este]

Keep the dream alive. Make them where ever you have to.

China can present its own problems though. They have there own way of doing things, just be careful.

[MTT]

I apologize For the website criticism, but yea keep it updated. Your main sales channel is word of mouth and the web. When I talk to someone about the skis, the website and TGR, is where I have to refer them for information.

As for China I do not believe the only place on earth that can make quality skis in china. You have now spent two seasons ramping up from scratch with different organizations. I can't help but wonder how your year would have gone if you had put all the time and energy and (Money) you spent in Canada with the original manufacturer. Now that you have a shop that seems to be pumping out product? You have your 2007 models keep making them so they are readily available next fall, or even better this summer when people are headed to SA.

The cards are also a good idea. All maggots who ski Bro's should have cards or brochures readily available to pass out on request. I for one would be happy to pass out the info rather than verbalize it on a chair lift.

You may also want to see if some of the more articulate maggots would mind if you published there TR’s o on your website. There is some fantastic advertising here. No pro lifetime skiers rocking the BRO Model. (I LIKE IT)!

The website is definately an issue (my work, so I am responsible), one that we are working on resolving. We have a new site in the works. Right now we're spending virtually all our capital on making skis.

Losing some customers because of Chinese manufacturing is a risk that we may have to take if the only alternative is going out of business. Having struggled with two different North American manufacturers, we may be forced to look to China. We're sorry that we'll lose you as a customer if we do that, but at least we will still be in business and still American-owned. We wouldn't do it if we could find a manufacturer in the U.S. that we could rely on.

[fluffballs]

As far as the maggot market burning out, new maggots join every day. I'm fairly new and my brother just joined. I skied with Vets last weekend in mammoth, and today my brother got to ski with Splat, Vets, and I think Kush or Tyrone. Needless to say, we'll both be picking up a pair of bros, that kind of personal marketing is incredible, not to mention the product.

[mntlion]

web site address on the skis topsheet ....

near the tails where it says "PM gear"

[MTT]

Booooooooo!

Hey I thought allot about saying that out loud. I feel very strongly about it. I might be the only one who feels this way, but I seriously doubt it.

At least I'm not a puss about it. You know where I stand.
Moving Manufacturing to China would certainly make people who ride K2 the New Volki and DP skis feel a bit better about them self’s.