An outdoor-clothing company’s key product range has not achieved its sales target
Wincote International is an outdoor-products company based in Colorado, US. Eighteen months ago, it launched a range of jackets and boots for men and women. The company believed that the market for these products was not saturated. The clothes were aimed at mountaineers, hikers, snowboarders and anyone participating in extreme sports or outdoor activities. The brand name of the range was XWS (Extreme Winter Sports).
THE LAUNCH
Following the product launch, the boots sold well, but the jacket fell below its sales target. Few people seemed to know that there was a new jacket on sale made from a new all-weather material. This was very disappointing, as the jacket was considered to have great sales potential. The management decided therefore to relaunch the product and change their approach to marketing it.
Read the information below about the jacket and how it was marketed.
Product
• The two-layer jacket is for men and women. It is a versatile, all-weather garment.
• It is offered in two sizes: medium and large.
• Colours: black for men; black and red for women.
• The outer shell of the jacket is made from a special new material. As a result, it is lightweight, hardwearing, very warm and weatherproof.
• The lining is removable, making the jacket suitable for all seasons.
• The jacket has a removable hood, 14 pockets, and a wide zipper down the centre.
Price
Promotion
• Full-page advertisements in magazines for people with outdoor and sports interests
• Half-page advertisements in newspapers; posters and point-of-sale advertisements
• Product demonstrations at exhibitions
• Slogan: ‘A jacket for all seasons’
Place
Study the charts below，why do you think sales have been so poor?
Chart 1 Comparison of the price of the Wincote XWS with four other top-selling outdoor jackets
Chart 2 Market share of outdoor jacket brands
The Marketing Department did some research with focus groups to get opinions about the jacket. The group participants' ages ranged from 16 to 60. Listen to their comments and make notes.
Summary of a consultant’s report on the Wincote XWS
The market for outdoor jackets is highly competitive. Because of its unique qualities, the Wincote XWS jacket could achieve its sales target with a new marketing approach. It needs to be relaunched as a stylish jacket for younger people in the 16–30 age group, and appeal to people living and working in cities as well as to outdoor enthusiasts. It should be promoted as a ‘must-have’ item of clothing for younger people. Changes must be made to the product and its marketing. The jacket should be relaunched as soon as possible.
TASK
1 Work in groups. Each group is a team in the marketing department. Hold a meeting to discuss what you should do to improve sales of the Wincote XWS. Use the questions in the box on the right as a guide.
2 Present your ideas to the other teams in the marketing department.
3 As a whole department, hold a meeting and decide what the company must do to improve the sales of the Wincote XWS.
Questions
• Product: How should the product be changed? Think about colour, sizes, changes to its design, specifications, etc.
• Price: Is the price correct? If not, what should it be? Should there be a different price for the men’s and women’s jackets?
• Promotion: Was it promoted the correct way? Is the Wincote XWS targeted at the right segment of the market? Does it need a new slogan? If so, what? What kind of advertising campaign should be used to relaunch the product?
• Place: Is it being sold in the right places?
As Marketing Director, write an e-mail to the Chief Executive Officer (CEO) of Wincote International, summarising the changes that you will make to the product and its marketing when the jacket is relaunched.
