Snowboarding Market Research: Norway Essay Example

up to 28 cm to aid with balance, whereas alpine boards typically have a width of 18-21 cm, but can be as narrow as 15 cm. The average rider typically uses boards in the 24-25 cm range. Depending on the size and style of the board, weights can vary from 1lb to 5lbs or .4 to 2.3kgs.

(Snowboard) The boards discussed in this report are the most popular boards used for recreational purposes. The brand Endo Snowboards is distinguished by its distinctive style and high quality. The use of vibrant air brushing, intricate detailing, and trendy graphics makes the Endo Snowboards brand distinct from its competitors. Additionally, the inclusion of Kevlar and meticulous manufacturing result in unparalleled quality and durability for the snowboard.

Endo Snowboards is a Canadian company that specializes in offering recreational snowboards for men, women, and youth. In Canada, snowboarding is a popular activity for both leisure and competitive purposes. According to the Print Measurement Bureau, approximately 72% of Canadian snowboarders belong to the 12-24 age group. Among these individuals, the most enthusiastic participants are aged between 12 and 17 and engage in the sport at least four times per month.

Statistics show that snowboarders between the ages of 35 and 49 make up only 9% of the total number of skiers and snowboarders. Although snowboarding is a relatively new sport, it has become increasingly popular over the past 25 years as an exciting outdoor winter activity. Despite facing competition from downhill skiing, which was the first established winter sport, people are drawn to try snowboarding because of its novelty and thrill. According to Statistics Canada, there was a decrease of 4% in Canadian skiers

between '97 and '99, while the number of snowboarders increased by 3%.

The production of ski and snowboard equipment in the west coast region of Canada, known for its Rocky Mountains, continues to thrive. New ski and snowboard resorts are also constantly emerging along the west coast of Canada and the United States. According to a report by The Mercanti Group, several current trends are benefiting the ski and snowboard industry. These trends include a shift in demographics, with individuals aged 25 to 34 projected to become the majority within the next five years instead of those aged 35 to 44 as it was previously. Specialty stores that specialize in higher margined winter apparel are also experiencing significant growth.

The number of winter leisure trips taken increased by 15% from 2000 to 2005, and targeting young singles and families with children could further drive growth in the industry (source: firsttracksonline.com). Snowboards vary in price based on user, brand name, and purpose (professional or recreational). They are widely distributed throughout Canada, with the highest popularity in mountainous areas like British Columbia, Alberta, and Quebec.

The snowboard market is dominated by well-known brands like Burton, K2, Forum, Gnu, Option, and Solomon. However, there are many other brands operating in the market. The prices of snowboards range from $50.00 for youth boards to $700.00 for men's boards.

• Endo Snowboards is a Canadian company that follows a price skimming strategy for its men's boards. The higher price reflects the exceptional quality of the product and aims to maximize profits. In Canada, Endo Snowboard Company offers snowboards ranging from $200 for youth boards to $300 - $700 for

men's and women's boards. The specific price depends on the style and production year but generally remains approximately $100 higher compared to similar competitors in the domestic market.

Endo Snowboard Company offers a two-year manufacturer's warranty for all their snowboards. To have a snowboard inspected under warranty, customers must obtain a return authorization by phone or email. The products must be shipped with pre-paid freight and insurance. Please note that Endo is not responsible for any damages or loss during shipment from the customer to Thunder Bay.

Please ensure that the waybill includes the phrase 'Damaged Goods Returning to Manufacturer' in the 'Description of Goods' section. The value of the returning goods should be stated as US$20.00. It is mandatory to provide the original order or purchase receipt for all warranty claims.

The warranty covers issues such as lamination failure on various components like top sheet, base, sidewall, and edge, as well as structural cracks on fiberglass, top sheet, base, core, edge, sidewall, and inserts. However certain issues are not covered under warranty including problems resulting from misuse, abuse, impact or neglect; damage caused by rocks or any other impact-related factors; normal wear and tear; damage caused by anything other than defects in material or workmanship; cosmetic issues like discolored graphics, top sheet dents or chips or rust; board damage resulting from improper mounting of bindings; incorrect mounting of hardware or cross threading inserts; and damage caused

by any board modifications not performed by Endo Snowboards.

To initiate a claim:
1) Assess the validity of your claim.
2) Confirm that the product was purchased within the last 24 months.
3) Verify that you are the original owner.

Next step is to return the product either to the store where it was originally purchased or contact Endo Snowboards via email or phone call. Clearly describe the problem for which you are returning it back.Step three: The Customer should opt for a cardboard box while transporting boards. Additionally, the Customer is accountable for the shipping expenses to Thunder Bay. However, upon receiving the board, Endo Snowboards will reimburse the Customer by issuing a cheque.

To ensure proper protection of the board during transportation, it is recommended to use Styrofoam to enclose all edges. Additionally, the customer should include a copy of the original proof of purchase (receipt) and a brief explanation of the issue. After receiving the package, Endo Snowboards will contact the customer to verify warranty information and provide details on repair or replacement timing. Moreover, any repaired or replaced items remain covered by warranty for an extra two years from the date of initial purchase.

Despite the potential cost, Endo Snowboards prioritizes the excellence and craftsmanship of their boards. Their commitment is backed by a two-year warranty, which sets them apart from competitors as they also cover shipping expenses. This advantage gives their warranty a competitive edge in the market.

Norway is my recommended target market due to the existing growth in export of Canadian skis and snowboards to this country. Notably, Norway, along with other Scandinavian nations, features an extensive mountainous terrain that includes nine renowned ski and snowboard

resorts. (Trade Data Online)

Despite economic struggles, the snowboard market in Norway remains relatively strong compared to other western European markets. The ski and snowboard resorts in Norway offer luxurious accommodations and pristine locations similar to those found in North America's Rocky Mountains. While Canada only holds a 1.1% import market share for skis and snowboards, Austria dominates with a much larger share of 13%. Nonetheless, I believe there is an opportunity for a new "Canadian" snowboard brand to establish itself in the Norwegian market. Norway operates as a mainly free-market economy and boasts abundant natural resources, with oil accounting for one-third of its exports and making it the third largest global oil exporter.

According to the Index of Economic Freedom, Norway is ranked 34th in terms of economic freedom, with a percentage of 69 percent. The index also highlights Norway's trustworthiness as an export partner, thanks to low tariffs and minimal corruption. Norway is well-known for its freedom in business, trade, and property rights, making it a reliable choice for exports. In Europe, the snowboard industry faces tough competition from the increasing popularity of freeskiing (also known as freestyle skiing) in the ski/snowboard experience.

Previously, snowboarding was considered the trendy approach to enjoying the slopes. However, freeskiing offers a freestyle interpretation of skiing, attracting individuals looking for a different and thrilling skiing experience. The concern for the snowboarding industry arises from the fact that learning freeskiing is comparatively easier for those seeking novelty and excitement. Snowboarding gained popularity because it provided an alternative to skiing, but now there is a third option available. The introduction of this new winter sport consequently creates another competitor for snowboarding, potentially

reducing the snowboard market size.

Endo snowboards plans to target the Scandinavian market by participating in the annual skiexpo in Finland in October 2008. This trade show will provide an opportunity for Endo snowboards to showcase the quality and unique artistic design of their product. It will also be their first introduction to the European market, allowing them to gain visibility and recognition. The main objective is to attract major wholesalers or large retailers who can help distribute the product throughout the country, with a focus on the southern region where most ski/snowboard resorts are located. (See appendix for contact information)

Purchasing criteria for distributors typically rely on quality, price, graphics, logos, and name brands. Timing plays a crucial role in the sales and marketing of snowboarding due to its seasonal nature. To penetrate the Norwegian market and establish brand recognition, the market penetration method will be employed by making the snowboards affordable for distributors. The strategy involves pricing the product approximately $100.00 USD (571.00NOK) lower than the competing brands. By offering a new brand at a competitive price point, it will attract customer attention and generate inquiries.

By leveraging marketing and sponsorship deals, our aim is to entice customers to break away from their usual name brand and try something new. Our product is well-suited for this market, given the mountainous regions and presence of 9 major ski/snowboard resorts. Furthermore, our brand is a stylish newcomer from North America and through aggressive promotion, we intend to capture the attention of snowboarders and gain market share. To cater to the local customers, our snowboard graphics, details, and packaging will be translated into Norwegian. However, it is important to

acknowledge the competition we face in Norway's snowboard market. Many of the same name brands dominating Canada's market also dominate here. One notable new competitor is Bataleon Snowboards, a Norwegian company that has garnered attention by winning the "Source" breakthrough band of the year award at the Eurisma Industry Awards Ceremony in April 2007. Their innovative triple base technology makes them a formidable rival for our product in this market, with increasing popularity in Europe.

Bataleon Snowboards is a rising star in the European market thanks to its sponsorships, events, and enthusiastic marketing style. Endo faces the challenge of generating as much excitement and capturing as much of the market as Bataleon. The pricing for Bataleon snowboards is similar to that of competitors for recreational snowboards for men and women, ranging from $200 - $600USD (1,034 – 3,103NOK). Additionally, youth snowboards are priced at $100 - $300USD (517 -1,551NOK).

The main advantage of the competition in Norway is that well-known brands such as Burton, Forum, K2, and Gnu have a strong presence and are familiar to most participants in the sport. These companies promote events, sponsor riders, and create films featuring their wide range of products, establishing their dominance in the market. However, this can also be a disadvantage as many riders already own their products, making them less appealing to those who want to be unique. Endo Snowboards can capitalize on this by marketing themselves as the new "cool" brand, gaining market share and increasing brand awareness. In 2001, 26% of people in Norway aged 16-79 participated in snowboarding, highlighting the potential market. With a population of 4 million living in a narrow and mountainous country

with 9 major ski/snowboard resorts, Norway boasts one of the world's most financially prosperous economies.

(Summary) Endo Snowboards sees great opportunity in the Norwegian market. They have identified G Sport, the largest sporting goods retailer in Norway, as a potential local distributor. Endo Snowboards plans to establish a business relationship with G Sport by inviting them to attend the Skiexpo in Finland. This will allow them to sell their products directly to G Sport, eliminating the need for a wholesaler. By selling directly to this major retailer at a lower price, Endo Snowboards aims to penetrate the Norwegian market effectively.

By utilizing G Sport, a renowned local distributor, Endo Snowboards can establish a strong brand presence and expand its distribution network nationwide. G Sport operates stores in 14 cities across Norway and holds a significant 27% market share in the sporting goods industry. To obtain details regarding distribution and contract options, Endo can contact a local representative in Norway (see appendix for contact information). The adoption of a distributor is customary among snowboard manufacturers, given the unique characteristics of the product, its seasonal demands, and the restricted product range.

Costs may include shipping, freight, insurance, packaging, warehousing or other costs that would be specified in the contract between the buyer and seller. The main challenge for Endo Snowboards' promotion strategy is its lack of recognition or brand awareness as a relatively new company. The success of the company will be determined by its promotion and marketing efforts. There are various factors to consider when promoting in this industry. Endo Snowboards can identify the top snowboarders in Norway by partnering with local Ski/Snowboard resorts like Geilo and Hemsedal and

sponsoring contests and events.

Endo Snowboards utilizes the popularity and achievements of riders by offering sponsorships and free boards to promote their brand. This promotional approach is highly prevalent in the industry where ski/snowboard resorts constantly seek events and activities to attract people. To gather riders from all over the country for competitions, Endo can advertise at local board shops and ski hills, provide cash prizes, and establish sponsorship deals. The initial step in this endeavor would be to contact both resorts. Financing an event and sponsoring competitions are costly but crucial for the success of a company venturing into a new market.

Endo Snowboards can organize the events with the help of their representatives and salespeople who will be sent from Canada to Norway. In case the costs become too high, they can consider partnering with another brand like Bataleon to finance the events and create brand awareness. (Refer to appendix for contact information)
Considerations for pricing include production cost, trucking, docking fees, wharfage and handling, finance charge, profit margin, ocean freight, marine insurance, and marketing costs. All these factors will be included in the cost sheet for this product. (Refer to appendix for cost sheet)
The planned payment method between Endo Snowboards and G Sport in Norway is a letter of credit. While payment in advance would be preferable for Endo Snowboards, both parties find the letter of credit method to be the safest, most reliable, and in their best interest.

The distributor's size eliminates the need for G Sport to provide collateral. It is suggested that the letter of credit fees should be divided between the two companies. Endo Snowboards will handle the bank fees,

while G Sport will be responsible for the reimbursement charges. By maintaining constant communication and fostering a constructive, positive relationship with the distributor, Endo Snowboards can ensure timely and complete payment. The U.

S. Dollar is recommended for payment due to the current exchange rate between the U. S.

The distributor will face increased costs due to the higher exchange rate between the Dollar and the Norwegian Kroner. It is therefore crucial that the price remains as low as possible. Fortunately, the recent weakening of the Dollar against the Kroner means that G Sport can make a cheaper purchase. This decline has been consistent for the past three months and is expected to continue due to factors related to the U.S economy. (Currency converter) (Refer to appendix for charts) To have more control over the shipment, Endo Snowboards has decided to use CIF as the chosen Incoterm.

By utilizing CIF, Endo Snowboards has the option to select the specific insurance and mode of transportation for their products. This Incoterm is advantageous for both parties due to their knowledge of the export country. The importer will be relieved of any transportation concerns within Canada, while Endo Snowboards will be alleviated of transportation responsibilities in Norway. Freight forwarding assistance will be sought from DHL Canada, with the probable shipment route being truck transportation to Montreal, followed by boat transportation to either the port of Oslo or the port of Bergen in Norway.

The port of Oslo is advantageous in terms of its size and accessibility. The freight forwarding company will determine potential carriers and select the most cost-effective and dependable ones. The only border crossing is from Canada across the Atlantic

to Norway. The snowboards will be grouped based on their size and stacked on top of each other, including men’s, women’s, and youth boards, to ensure a compact shipment. Initially, the snowboards need to be covered with plastic shrink wrap.

Next, place three square inch cubes of styrofoam on the front, back, and middle pressure points. Then, the box can be filled with dunnage. It is recommended to use inflatable cushions as dunnage. The size of the boxes may vary because of the difference in board sizes. The snowboards should fit tightly inside the box.

Each box will contain five snowboards and will be tagged as fragile to ensure the boards are not damaged during shipping. The boxes will then be stacked on pallets. Norway operates as a free market economy and welcomes trade with Canada. Exporting to Norway typically involves minimal trade complications. However, Norwegian Customs Authority mandates a 24% VAT (Value Added Tax) for shipments valued above US $20.

Norway does not impose tariff charges on snowboards. For easy identification, outer containers should include the consignee's mark, port mark, and numbers that correspond to the packing list. Unless the contents can be easily identified, the term "Utenlandsk" (Foreign) or "Fabrikert i..." (Made in...) should be mentioned.

The product should have the country of origin stamped on it or shown on the label. All written information will be in English and Norwegian. The metric system is used for weights and measurements. There is no prescribed form for the commercial invoice, but it should include the names and addresses of both the buyer and seller, the place and date of issue of the invoice and date of purchase, a

detailed description of the goods including type and net quantity, an HS number, the number of packages and type, weight, marks and number of outer containers, an agreed price for each product, and all terms related to payment, sale, takeover, and delivery including discounts and rebates.
For the Bill of lading, two certified copies are required and must be certified by the Chamber of Commerce. When exporting from Canada, the Canadian Border Services Agency has certain requirements. Specifically for this item, a Business Number (BN) must be included on all export declarations regardless of the reporting method chosen. The BN is a 15-digit account number consisting of a 9-digit BN, RM letters representing import/export program, and 4 digits representing a unique program account identifier activated for exports. All exports must be reported.

In general, the Norwegian economy is robust, enabling

many of its inhabitants to afford snowboarding. Lift tickets and resort memberships are often pricey, so exporting this product would not be viable without a strong economy. Norway's mountainous regions provide excellent terrain for snowboarding and present an ideal opportunity to introduce more competition within the market. Snowboarding is primarily dominated by well-known brands.

Most of the products are globally sold, known, and recognized. For a small company with limited resources, having an extremely innovative technological advancement, a creative eye-catching name brand and logo, a low price, and a long warranty are crucial. However, even with all of the above, if the product is not being used by top riders in videos and magazines, it will never gain popularity. Proper marketing and promotion are the determining factors for success in this industry. Implementing these marketing strategies can be costly and involves risks. Although the initial cost may be high, if done correctly, it can lead to lucrative expansion and success. Exporting Endo Snowboard’s product from Canada to Norway is feasible but challenging and risky.

References

1. Boardsport Source. Eurisma European Industry Awards Winners. 15 May 2007.
2. Accessed April1, 2008 http://www. boardsportsource. com/show_news_item/8166/ En Canada Boarder Service Agency.Exporting goods from Canada a handy guide for exporters. 2007 08 29. Accessed April 1, 2007.
3. http://www. cbsa-asfc. gc. ca/publications/pub/rc4116-eng. html CIA World Fact Book.

Norway. March 20th 2008. Accessed April 1, 2008. https://www.cia.gov/library/publications/the-world-factbook/geos/no.html

• Exchangerates.org

Norwegian Kroner (NOK) to 1 US Dollar (USD) from exchangerates.org. Accessed on April 1, 2008 at http://www.exchange-rates.org/history/NOK/USD/G/180.

Outlook for the Ski and Snowboard Industry is positive, according to an article accessed on January 25th, 2007 from http://www.firsttracksonline.com/index.php?name=News=1436. Additionally, the Industry Canada website is a relevant source for information.

Trade Data Online.February 20/08. Accessed February 28th/08 http://www.ic.gc.ca/sc_mrkti/tdst/tdo/tdo.

The article "Monique Beyrouti. More Skiers and Snowboarders are Visiting Canadian Ski Areas. Winter 2000." can be accessed on February 28, 2008.

Monson Snowboards.

Accessed on February 28th/08. http://www.boardsportsource.com/issues/snow_forum/european_snowboard_market.pdf Summary.

• Author unknown, published date unknown.

Accessed April 1, 2008 http://commercecan.ic.gc.ca/scdt/bizmap/interface2.nsf/vDownload/ISA_3518/$file/X_2627497.DOC

• The Heritage Foundation.

Accessed April 1, 2008, the Index of Economic Freedom can be found at http://www.heritage.org/index/country.

cfm? id=Norway Trade Map.

List of supplying markets for the product imported by Norway in 2006. accessed February 28th/08 http://beta. trademap. net/Country_SelProductCountry. aspx http://www. statcan.ca/english/freepub/87-003-XIE/0010087-003-XIE.

pdf

org/wiki/Snowboard