2006 Marketers That Mattered
VP OF CORPORATE MARKETING Hubert Wat, who went back to basics. “We revisited everything”
Photograph: Chris Bolin
Two years ago, media references to The Forzani Group routinely contained the adjectives “troubled” and “struggling.” Sales at Canada’s largest sports retailer were disappointing, the stock price was down, and the Calgary-based company that operates the banners Sport Chek, Sport Mart, Coast Mountain Sports and National Sports, was in trouble. CEO Bob Sartor announced a strategy for recovery: revitalized stores, slimmed down inventories and major changes to marketing.
The last was the responsibility of VP of corporate marketing Hubert Wat, who went back to basics. “We revisited everything. We looked at who our customers were, who we wanted them to be and how to reach them,” he says. “We examined how we handled and marketed each of our different banners.” That resulted in a marketing strategy of clearly differentiating between the sometimes competing banners, diversifying the marketing and “getting more bang for our marketing dollar.”
Proof of success is in the numbers. In September, Forzani reported a second quarter profit of $1.9 million, compared with a loss of $2.3 million in the same quarter of 2005, plus same-store sales were up by 5.4%. Franchise banners showed similar improvement. And despite increasing the reach and range of its advertising, marketing costs were down 21% as Wat revisited and re-negotiated supplier contracts.
The flagship Sport Chek was the first banner to receive a marketing makeover to coincide with the update of its stores. Driven by its “Power of Sport” brand positioning, Sport Chek reached out to new customers through new channels. Sport Chek’s soccer mom demographic was expanded to include a younger customer, which meant expanding beyond traditional price-point driven flyer advertising. “A 14-year-old snowboarder isn’t likely to see our flyer in the Victoria Times-Colonist,” says Wat.
So there were more TV spots, both branded and strategic, to the point where “we were on some TV channel somewhere 365 days a year.” Costs were mitigated by partnerships with suppliers and embedded ads like the RBK spot which showed NHL phenom Sidney Crosby practicing in front of a Sport Chek rink board or a Nike spot with the Calgary Flames’ Jarome Iginla that was shot in a Sport Chek store. There’s also subtle product placement for Sport Chek’s sponsorship of CanWest’s hockey reality show Making the Cut: Last Man Standing.
Equipment guide inserts in Ski Canada‘s gear guide and Park & Pipe snowboarding magazine’s riders guide provided exposure and added credibility with younger customers. The same younger demographic was lured to a revamped website with an online contest.
“I think they’ve done very good things in the last couple of years,” says Lynne Ricker, senior instructor in marketing at the University of Calgary’s Haskayne School of Business. As examples, she cites store facelifts, improved inventory and a focus on new customers. “They are going beyond the parents buying sporting equipment for their kids.” Ricker says Sport Chek’s new look advertising “looks pretty good and goes well with what they’re doing.”
Forzani’s other corporate banners are getting a similar makeover with national campaigns and new slogans that clearly position and differentiate them. An outdoor campaign for outdoor equipment store Coast Mountain Sports features mountaineers and backcountry hikers and introduces the slogan “Find new ground.” For National Sports, which supplies equipment to minor league and amateur teams, the national campaign slogan is “Raise your game.” A campaign for Sport Mart is in the works.
Looking back on the year, Wat believes Forzani has successfully begun creating distinct brands for its various corporate banners. He’s even more enthusiastic about improved sales and revenues. “Building brand awareness is fine, but it’s all about increasing sales. If any marketer tells you it’s not, it’s a crock.”
