Marketing on Academy Sports and Outdoors

1. SITUATION ANALYSIS

Business/ Environment Context

Academy Sports and Outdoors goods  are going through dynamic and significant  growth  by   adding  twenty fresh stores every year  for a period of over  five years and  will thus eventually  lead to  having  more than 400 stores.  Marketing is, therefore, essential for the corporation’s success as well as the future generation of profit.  The corporation offers   quality and affordable goods which make this favorable for the current market segment.  There is a need of developing goods and services that meet the needs of generation X and millennial as they are the major buyers of sports goods. Academy shops and outdoor offers sophisticated strategies in enhancing the general satisfaction of the consumers. The requirement for academy sports and outdoor goods is clarified and validated by the existing information on their general long-term value to the users. There is a direct connection between sporting and outdoor academy goods with the youths.  Based on research it is indicated that sporting and outdoor activities are associated with numerous benefits to individuals and especially the two generations of millennial and X generation. The e-commerce marketing of the corporation cannot be termed as the best and therefore there is a need for developing strategic directions on how it should successful market academy and outdoor goods to the millennial and the X generation. In purchase trends, changes millennial are the leading changes (Swayne, 2011). This, therefore, raises the necessity of utilizing strategic approaches in marketing as more products will be available in the market.

Corporate Description

Mission and Vision Statement, Strategic Intent

The academy  sports  and outdoor  corporation’s vision  is to become a  premier  sports and outdoor  as well as  a lifestyle store  by  adopting continuously the changing trends and  necessitates of consumers.  The mission of the corporation is divided into three different parts.  The first section deals with dealing  unique and supreme  shopping experience to the corporations  consumers  through the provision of convenience,  offering a  wider  selection of quality products, delivering  consumer  services that are exceptional and  selling goods  at lower prices each day without fail.  The second part knows the corporate’s consumers.  Clients are the first priority of the corporation as it strives in ensuring that it becomes the retail destination that the consumers can fully trust (Academy, 2016).  Lastly, the stores wish to  respect  their associates through developing  opportunities  for  individual  growth  as well as career  development and  promote teamwork simultaneously  in a joyful  and rewarding working surrounding.

Corporate Plan

Academy sports and outdoors is categorized among the largest national outdoor and sporting stores. The funds owning advisory of the stores is done by KKR & Co. L.P in collaboration  with  KKR affiliates which is a  leading internal  firm  that  is grounded on  investment and n it is   directed by president Symancyk J.K. Before the year 2011 August the corporation was owned by the family of Gochman and the director and CEO was Gochman David. The corporation was founded by Gochman Max who is the grandfather of David seventy-five years ago. The corporation was started as a tire Academy shop in Texas, San Antonio in the year 1938 (Academy, 2016). After a few years of operation, the founder started providing military surplus and the evolution has continuously evolved with time to the existing status which is a premier outdoor, sports and lifestyle retailer. The store is characterized by high-quality fishing, hunting, camping, and gearing as well as leisure and sports products like footwear, apparel and much more.  The last few decades have characterized the corporation with adverse changes as compared to its humble beginning.  In particular 2004, sales amounted to  over  one billion  dollars and  in  2007 the sales totaled  to  two full billion  dollars and   this  increased in  2012 up to   three billion  dollars. The annual sales today are over 4.6 billion dollars. The corporation has more than three hundred stores that are situated in different states (Academy, 2016).

Long-Term Goals

The corporation’s stores are concentrated in few states which raise the need for expanding its locations to more states.  In the last few years, sales have been striping and this, therefore, necessitates the corporation to develop its manufacturing capabilities.  The corporation wants to increase its general sale in all the sales, maximize the generation of profit and improve its manufacturing abilities (Academy, 2016).

Academy sports and outdoor is generally committed to giving back to   the society through making local programs   conservation.  Eventually, the corporation wishes to   create and funds its individualized surrounding programs. The plan will, therefore, demonstrates the intentions of   academy sports and outdoor stores in   developing fresh products, expanding their general distribution, get into the new markets as well as give back to the community that surrounds its general stores.  The store additional wants to be the leading marketer and producer of casual and personalized clothing for the consumers who are highly interested in academy sports and activities that are done in the outdoor and especially the X generation and the Millennial who are the major consumers. In addition, the corporation  wants to be leading in developing clothing  unique messages, trendy  attires, and colors and well as a high-quality following  among  the consumers  who are  between the  ages  of  10 to 35.  Academy sports and outdoor stores want to be an inspiration to individuals of getting outdoors in an often period and get the chances of enjoying with their friends as well as family. The corporation strives in designing programs that are objected mainly at preserving the environment.

In the next five years, the corporation aims at achieving several goals as follows. First, the corporation wants to add 20 more stalls annually which will total to more than 400 total stores after the five year period.

Non-Financial Goals

The corporation is also striving to increase its sales by at least 14 % and 20% to the millennial and the X generation respectively. This will help in maximizing the general profit that the corporation develops without fail.  The corporation wants to achieve this through developing strategic marketing strategies to the two groups as well as to the entire group of its consumers (Academy, 2016).

1. Develop two fresh and unique product lines with customized logos as well as luggage that are characterized by lightness.
2. Enter into fresh geographic markets that will include the states located in mid-Atlantic and those that are in the southwest direction.

• Develop internet locations that are efficient in order to maintain well-developed associations with the store's relations through effective communication.

1. Develop a corporate own program that is based on conservation  which will be purposed  for  helping the   surrounding communities to  raise  funds that will help to purchase more open space for  retailing.

Financial Goals

1. The corporation wants to obtain more finances  in  order to develop  its  manufacturing   abilities,  develop  distribution  and  create  two fresh product lines.
2. Develop higher revenue by at least 45% every year

• Make community donations of at least 20, 000 dollars every year to conservation programs.

Strategic objectives include:

1. Creating increased consumer satisfaction as demonstrated by the development of consumer recommendations
2. Obtaining a much higher consumer input into the sourcing which will be demonstrated by the participation in the advisory teams.

Distribution Description

Distribution is conducted in retail and online supply. Academy’s merchandise planning is characterized by fashion, staple, seasonal and convenience. Its location is basically a shopping center. This can be described as a strategic location mainly because there are no other sporting and outdoor stores that surround it.  The location of the stores offers many conveniences to the consumers as it can be accessed easily.

The merchandise begins with the manufacturing process. From this point, the academy is able to purchase the product and it is then shipped to the distribution location. The merchandise is then distributed and then transported to the different stores to be retailed for the consumers to purchase from there.  The distribution centers for the corporation are still growing, currently, they are at 1.4 million feet square and they generally utilize state of art equipment as well as technology.

The store’s layout personality is very organized and very attractive to the target consumers.  This is mainly because the merchandise of the stores is neatly and well organized and with helpful and caring employees the services are efficient. 

Competitive Analysis

The sports and outdoor retail goods industry make annual sales of approximately more than 5 billion dollars which range from equipment as well as clothing.  The outdoor and sporting attire industry is characterized by numerous enters.  Much competition is offered by corporations such as timberland, pentagon, Cabello’s, Bass shops, REI among other recognized firms that offer similar products.  There are other smaller stores that offer  athletic sporting clothes  for  the female gender  as well as Ragged mountain which is  recognized  for offering  fleece  clothes  for skiers and the hiking consumers which  grab a share of the market segment.  The industry’s outlook generally and particularly for academy sports and outdoor stores can be described as a positive one based on several rationales.  First is based on the fact that the customers of the products are continuously taking part and investing in recreational programs in the communities. The second reason is that consumers are mainly trying to establish ways in which they can generate much enjoyment with the loved one without spending much. Lastly, since the consumers are slowly gaining confidence in the current economy they are willing and hold the capability of spending more.

While all the corporations that have been listed above can be considered as major competitors there is none that offers the kind of trend, quality and practical goods like those offered by Academy sporting and outdoor. In addition, there is none that  aims at providing  the customized  slogans  and  symbols that the Academy  plans in providing  in the  close future in the market. In addition, most of the competitors offer products that are manufactured from high tech fabrics. In the exception of  sporting  jackets academy’s sporting attires are  developed from  the  greatest  quality of cotton which makes it flexible to wear during  sports and outdoor  operations.  Finally, the academy’s products are characterized by lower prices thus ensuring that they are much affordable in more quantities (Swayne, 2011).

Pricing Overview

For example, the Academy’s stores sell T-shirts sells ranges from 15.99 dollars and the competing T-shirts by some firms is sold at 29.99 dollars.  This, therefore, makes it easier for the consumers to replace their products in different seasons by picking the freshest trend and color without the hustle of giving many thoughts to purchases.

Based on  the recent survey conducted by the corporation it was established that individuals  especially those between the age of 15 and 30 prefers to  replace their sporting  attires and outdoor equipment’s more often as compared to other kinds of clothes (Weiner, 2016).  With this, the pricing of academy sporting attracts the interests of these consumers even more. Additionally the trend towards developing healthy and mindful activities and the general concern that regards the environment continuous as consumers are able to relate to the Academy’s philosophy of sustainability development and social contributions (Weiner, 2016).

Consumer Analysis

The major target market of academy sports is basically active persons who participate in different popular sports and outdoor activities.   A 14-year-old  individual  who  is highly interested in  obtaining the  most suitable  sporting equipment’s in order  to train  and   get ready in participating  in sports such as soccer can be regarded as the perfect description  of the  academy’s stores target market.  In the context of demographics teens and youths are specifically attracted to the products offered by the store. In the context of psychographics, athletes are more attracted to the store (Weiner, 2016). The stores are geographically located in places were sporting and outdoor programs are popular. The store has a competitive advantage   as it sells more stuff at more reduced prices that   all persons can afford.  This advantage can work for the millennial and X generation mainly because they are more attracted by quality, trendy and affordable product.  In addition, these are the groups that participate mostly in sporting and outdoor activities. The Academy mainly targets active consumer’s people who are highly interested in fishing, hiking, sporting, riding and similar activities. In other words, individuals who love to engage in activities that are not indoors.  This, therefore, means that the target is not mainly for those that are expertise in this field that they are involved but they are highly motivated and happy doing the outdoor activities (Weiner, 2016).

The active consumers are a representation of the demographic groups of efficient and educated individuals who might be single married or raising their particular families.  Their general income in this context of individuals between the age of 25 and 45 is from 45, 000 dollars up to 120,000 dollars annually (Weiner, 2016).   In this despite the comfortable incomes the consumers are highly conscious in regard to prices and thy additional look for value in the products that they buy.  Regardless of the ages these individuals’ lives in active lifestyles based on the changing trends and needs of activeness.  The individuals are oriented on status but not in general.  Despite the fact that this particular demography loves to be linked with high-quality brands they are never willing to pay a higher premium in attaining certain products.  Most consumers of the Academy’s products are mainly based in the United States southern part, California, and neighboring states. However, the primary future goal of the corporation is to target customers who are located   in the middle states in the Atlantic middle states as well as those from the southwest regions (Weiner, 2016).

1. PROBLEMS AND OPPORTUNITIES

SWOT Analysis

The operating and marketing surrounding of Academy’s sporting is a representation of interesting opportunities. The structure of cost can be described as dynamic this is mainly because corporations in the market are faced with a rapidly increasing products demand for sporting and outdoor products and activities (Swayne, 2011). The academy sports and outdoors corporation SWOT analysis provides a strategic analysis of the operations and the general business which can help in generating a competitive advantage.

Strengths

In the recent three years, the corporation has been able to build loyal consumers which are indicated by   an increase in the generated finances.  The corporation has an effective financial management that helps in allocation of the general funds.  This has resulted in reduced labor thus increasing the profit margin as well as the generated revenue.  The domestic market for the corporation is very high which out plays the competitors based on the current sales networks and distributions channels (Academy, 2016).

Weaknesses

As the corporation plans on expansion and getting into fresh markets it is advisable that it makes consideration of the cost structure of the development as well as future profitability.  This will, therefore, require the firm to gain protection against the failure of establishing a scope in business (Academy, 2016).

Opportunities

In attaining competitive advantage in the fresh markets require the incorporation of capable strategies. The corporations have the opportunity of developing better relationships with the all the retailers, suppliers as well as the consumers which will help in thwarting the general competition (Academy, 2016).

Threats

As the corporation makes plans in  entering  to  more fresh markets, developing new products and increasing their  e-commerce sales  the  management will  be subjected to  increased competitions threats and these products  and services  may be duplicated easily (Academy, 2016).

III.    STRATEGIC PLANNING: THE BASIC DECISIONS

Marketing objectives are divided into four parts. That is promotional, profitability community relations and consumer based market objectives.  The corporation strives on increasing online advertise and television advertisements by 10%, in addition, the corporation also wants to develop sales by 10% per year (Academy, 2016).  Through developing sales by 10%, the profit is bound to increase at the same rate. In developing community-based relations the corporations aims at developing community awareness programs of the benefits through the creation of events.  In the context of produce marketing objectives, the corporation aims at manufacturing product that is characterized by new logos and mottos based on the selected sport as well as activity (Academy, 2016).

Positioning and Branding

Academy sports and outdoor product are mainly associated with   quality, quality package, and affordability.  Increasing the number of stores and the introduction of slogans is additionally positioned in the thoughts of the products consumers with the same aspects well incorporated.  The products are trusted with the leading quality with a good feel (Weiner, 2016).  The existing efforts in developing and position products for the millennial and X generation are focused on attracting more active consumers.  The corporation, therefore, wants this set of the market to understand the products as a benefit that they are all required to have.  This will help in benefiting from the current changing trends in the industry of sports.  It is, therefore, important that the corporation evolves through the adoption of a different positioning strategy.  The company should, therefore, work in ensuring that the consumers fully understand that the products are long lasting and that with the accompanying strength it is easy to achieve greater heights. With this target market, a packaging and quality positioning may work in developing success (Graham, Goldblatt, Neirotti, & Graham, 2001).

Branding and Identification

Academy sports and outdoor stores hold great advantage in the sports competitive field and its dominating history has resulted in an increase in all the products visibility. In the context of brand awareness the corporation currently holds a favorable position as it is the most recognized as it is currently dominating the market.  The brand image is favorable as people view the corporation as a superior firm that is characterized by success (Weiner, 2016).

Brand loyalty is a very important aspect when developing an organization or when aspiring to develop sales (Weiner, 2016).  The corporation must, therefore, ensure efficiency of all the added stores in order to attain consumer satisfaction easily.  Through developing the performance of the stalls this will work in ensuring that products are purchased repeatedly.

1. MARKETING MIX OBJECTIVES, STRATEGIES, AND TACTICS

The following is a presentation of detail to the projected marketing mix for the Academy sports and outdoors products.

Product Strategy

Academy sports and outdoor stores currently provide a high-quality line outdoor attires and equipment. This general includes jackets, t-shirt, caps fishing, hunting as well as camping equipment’s and not forgetting leisure and recreation products such as attires and footwear.  The firm is expected to make research of items names and popular colors to ensure that their consumers enjoy the services in general (Weiner, 2016).  Over the period time of the five years, the corporation's plan on expanding the stores to over 400 and develop fresh product lines with customized styles.  Consumers will be allowed to select a symbol that depicts their sports or activity.  With this, a slogan can be added to match the provided logo.  When starting there will be   an addition of ten slogans and logos and the addition will be done with time.  For instance, for a baseball participant, the cap for a cyclist can hold the slogan ‘’ Spinning it’’.  This will mean that some slogans will be gotten rid with the introduction of fresh ones. This strategy will help in ensuring that the concepts are fresh and thus hinders the concept from becoming diluted by the numerous variations (Weiner, 2016). The second plan of expanding the stores and the product line is through offering items that are characterized by lighter weights. This can be generated in trendy colors, quality, and selection of logos and slogans.

Distribution Strategy

Currently, Academy sports and outdoors does its marketing via local as well as regional expertise as the retails shops are scattered across different states.  The e-commerce of the corporation is not the best so far and the products have not yet been distributed via attire chains and national sporting goods.  The sale of the retails shops are mainly determined by climates as well as seasons.  Outdoor and leisure attires and equipment are sold more during warm weathers as compared to the cold seasons (Weiner, 2016).  The   industry trends are acquired by the corporation from distinct retails outlets and geographic locations. In the next five years, the corporation aims at distributing its products throughout the nation through increasing its stores. The determination of whether selling through national chains   has not ben established yet.  The corporation plans on developing sales through the utilization of retails stores. Regardless of this plan, the corporation aims   at building stronger relationships with all the channel members of the distributions.

Promotional Strategy

Academy sports and outdoor stores communicate to all its consumers and retailers in regard to product through the utilization of different forms.  This includes Personal selling, Advertising, Sales promotion, packaging as well as direct marketing. These promotional efforts are additionally based on ensuring that the corporation’s products are differentiated from those of the competitors (SB-Wire, 2013).

Personal selling is the strategy that the corporation relies on when connecting with the retailers which help in establishing their products in the retailer’s stores.  This helps in conveying product awareness and develops better relationships. Sales promotion is done to attract more retailers and consumers and increase awareness of the products.  Packaging is done effectively which helps in conveying the products message as well as the increased awareness (SB-Wire, 2013).

Price Strategy

As discussed earlier, the corporation’s products are priced affordably with competition   as a priority.  The firm is not mainly centered with developing high prices in regard to prestige and it is neither centered on offsetting low prices in order to increase its sales quantities (SB-Wire, 2013).  Value pricing for the corporation is mainly done in order to ensure that the consumers are comfortable purchasing fresh clothes and equipment’s to replace the ones they had even if they are doing it because they love the new colors.  The pricing strategy makes the product favorable (Morgan, & Summers, 2005). The customized goods will range from two dollars as compared to regular logo clothing and equipment.  This will work to ensure that they are priced in a competitive way which will work to provide better value against the competition.

Academy sporting and outdoor corporation intend on continuing operations into the future that is foreseeable and it has no plans of exiting the current market.  As presented in the plan the corporation’s anticipates on developing its general presence throughout the market by increasing its stores by 20 every year in the period of five years.  Currently, the corporation has no plans of merging with a different corporation or else to develop public stocks (SB-Wire, 2013).

 

 

            References

Academy. (2016). Academy Sports + Outdoors. Retrieved from http://www.academy.com/

Graham, S., Goldblatt, J. J., Neirotti, L. D., & Graham, S. (2001). The ultimate guide to sports marketing. New York: McGraw-Hill.

Linda E. Swayne. (2011). Encyclopedia of sports management and marketing: 1. Los Angeles [u.a.: Sage.

Morgan, M. J. J., & Summers, J. (2005). Sports Marketing. Southbank, Vic: Thomson.

SB-Wire. (2013). Academy Sports + Outdoors: Retail Company Profile, SWOT and Financial Report. Retrieved from http://www.sbwire.com/press-releases/academy-sports-outdoors-retail-company-profile-swot-and-financial-report-237623.htm

Weiner, C. (2016). Academy Sports Outdoors Dynamic and Strategic SWOT Analysis. Retrieved from http://www.swotanalysis24.com/swot-a/1027-swot-analysis-academy-sports-outdoors.html