Post on 13-Apr-2017
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
HOW CAN REI CONTINUE TO GROW AND THRIVE?
CONNECT PEOPLE TO
THE OUTDOORS
ELEVATE VALUE OF REI CO-OP
DRIVE MEMBERSHIP
GROWTH
TRAILHEAD YOUR ASK & OUR STRATEGY
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
INTEGRATE ONLINE + IN-STORE
FOSTER MEMBERSHIP COMMUNITY
SIMPLIFY CUSTOMER
EXPERIENCE
myREI TRAILHEAD YOUR ASK & OUR STRATEGY
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
ONLINE RETAILERS
SPECIALTY LOCAL SHOPS
BRICK & MORTAR RETAILERS
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
54 MILLION
AMAZON PRIME MEMBERS
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
ONLINE RETAILERS
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
BRICK & MORTAR RETAILERS
SOCIAL MEDIA MENTIONS
3.2 MILLION
THE NORTH FACE
58 THOUSAND
REI
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
SPECIALTY LOCAL SHOPS
4,000+
SPECIALTY BIKE RETAILERS
PREVELANCE OF ONLINE &
MOBILE SHOPPING
INCREASE IN MILLENNIAL
PURCHASING POWER
GROWING POPULARITY OF FITNESS APPS
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
INCREASE IN MILLENNIAL
PURCHASING POWER
MILLENNIALS SPEND MORE THAN
$200 BILLION
ANNUALLY
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
PREVELANCE OF ONLINE &
MOBILE SHOPPING
64% OF MILLENNIALS USE THEIR
SMARTPHONES TO PURCHASE PRODUCTS ONLINE
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
GROWING POPULARITY OF FITNESS APPS
62% GROWTH IN DAILY USE
OF FITNESS APPS VS. 33% IN ALL OTHER APPS
ENVIRONMENT INDUSTRY ANALYSIS & TRENDS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
S W
O T
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
6 Million Loyal Members High Employee Satisfaction In-store Experience Brand Equity
Strengths W
O T
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Under-Promotion of Co-Op Structure Lack of Member
Engagement
S Weaknesses
O T
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
Personalize Customer Experience Leverage Social Media Incorporate Technology In-Store
and Outdoors
S W
Opportunities T
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
Changing Demographics Showroom Effect Low Outdoor Interest Among
Millennials
S W
O Threats
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
WEARABLE TECHNOLOGY
FASHION VS. FUNCTION
MEMBER COMMUNITY APP
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
BRAND EQUITY
PROMOTES CO-OP
ATTRACTS MILLENNIALS
& WOMEN
PROFIT- ABILITY
RISK / FEASIBILITY
BENEFITS MEMBERS
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
BRAND EQUITY
PROMOTES CO-OP
ATTRACTS MILLENNIALS
& WOMEN
PROFIT- ABILITY
RISK / FEASIBILITY
BENEFITS MEMBERS
+6
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
BRAND EQUITY
PROMOTES CO-OP
ATTRACTS MILLENNIALS
& WOMEN
PROFIT- ABILITY
RISK / FEASIBILITY
BENEFITS MEMBERS
+6 +3
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
BRAND EQUITY
PROMOTES CO-OP
ATTRACTS MILLENNIALS
& WOMEN
PROFIT- ABILITY
RISK / FEASIBILITY
BENEFITS MEMBERS
+6 +3 +8
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
DRIVE MEMBERSHIP GROWTH
ELEVATE VALUE OF REI CO-OP
CONNECT PEOPLE TO THE OUTDOORS
Members-Only Benefits: Coupons | Dividend Management | Personal Shopper
Increased Member Engagement | Targeted Marketing & Consumer Research | Post-Purchase Follow Up
Community Activities | Group Challenges | Social Sharing
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
KEY FUNCTIONALITIES
Personalized Membership Profile Monitor Activity Levels Membership Community & Social Feed Quick Access to Coupons, Dividend Payments, & Personal Shopper
SUMMIT OUR RECOMMENDATIONS
LEVERAGE SOCIAL MEDIA
IMPLEMENT IN-STORE
PROMOTION
SUMMIT OUR RECOMMENDATIONS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
SWITCHBACKS RISKS & MITIGATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
ONLINE RETAILERS
SPECIALTY LOCAL SHOPS
BRICK & MORTAR RETAILERS
SWITCHBACKS RISKS & MITIGATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
RISK MITIGATION
E-Commerce Competitors
Rapid Expansion of Brick & Mortar Retailers
High Social Media Engagement of Competitors
Unknown Demand for Community App Among Members
myREI Makes Mobile & In-Store Shopping Easier & More Dependable
myREI Can Help Determine Strategic Locations for Expansion
App Feature & #myREI Campaign Will Elevate Social Media Presence
Previous Success with MeetUp.com for #OptOutside
Finance New Projects
Design with Adventure Projects
Design Website Changes
Develop myREI App
Implement Website Changes
Launch Marketing Campaign
Evaluate Customer Response
Improve App Based on Feedback
Launch App Abroad
JUN|JUL|AUG|SEP|OCT|NOV|DEC|JAN|FEB|MAR|APR|MAY
ROADMAP IMPLEMENTATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
ROADMAP IMPLEMENTATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
6 MILLION ACTIVE MEMBERS
300,000 ADOPT
THE APP
YEAR 1 FINANCIAL ASSUMPTIONS
15,000
NEW MEMBERS FROM APP
$50 INCREASED SPENDING BY 10% OF APP USERS
$355 CURRENT REVENUE PER ACTIVE MEMBER
$266 EXPECTED REVENUE PER NEW MEMBER
ROADMAP IMPLEMENTATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
-$5,000,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
yr.0 yr.1 yr.2 yr.3 yr.4 yr.5
NET PROFIT $1 MILLION
INITIAL INVESTMENT - DEVELOPMENT
COSTS
Marketing Servers Maintenance
REVENUES
From Active Members From New
Members Membership Fee
ROADMAP IMPLEMENTATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
NEW MEMBER ACQUISITION SENSITIVITY
NPV
ROADMAP IMPLEMENTATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
25% 50% 75% 100%
NEW MEMBER SPENDING (% OF CURRENT SPENDING)
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
myREI
INTEGRATE ONLINE + IN-STORE
FOSTER MEMBERSHIP COMMUNITY
SIMPLIFY CUSTOMER
EXPERIENCE
CONNECT PEOPLE TO
THE OUTDOORS
ELEVATE VALUE OF REI CO-OP
DRIVE MEMBERSHIP
GROWTH
APPENDIX
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
FINANCE PROJECTIONS
ALTERNATIVES MATRIX
SWOT ANALYSIS
MARKET EXP. GRID
VRIO FRAMEWORK
ROOT CAUSE ANALYSIS
FITNESS APP GROWTH
FOREIGN EXPANSION
ONLINE SHOPPING
2ND APP ADOPTION
myREI MOCK-UPS TRAILHEAD
ENVIRONMENT
GEAR
SUMMIT
SWITCHBACKS
ROAD MAP
CRITERIA EVALUATION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
Convert To Sales Easy Access to Dividends Coupon Use Statistics Members-Only Personal Shopping
SUMMIT OUR RECOMMENDATIONS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
In-App Messaging for Member Interaction Friends can see where are people are doing activity outdoors, encouraging them to tag along
SUMMIT OUR RECOMMENDATIONS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
HiAlex,Letusknowhowyoulikeyournewboots!
ReviewNow
BRAND EQUITY
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Likelihood That Initiative Will Improve / Compromise Customers’ Trust In: Quality Of Products Fulfillment Of Co-op Mission
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
PROMOTES CO-OP
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Raises Awareness About REI’s Co-op Structure Highlights Key Benefits of Co-Op Membership Improves Accessibility To Membership
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
ATTRACTS MILLENNIALS
& WOMEN
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Integrates Technology In Customer Experience Capitalizes On Mobile Shopping Trends Capitalizes On Growth In Mobile App Use Makes The Outdoors More Accessible To These Demographics
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
PROFITABILITY
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Short-Term Profitability Initial Investment Revenues Generated In First 2 Years
Long-Term Profitability Membership Growth Return On Investment
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
RISK / FEASIBILITY
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Long-Term Relevance To Customers Aggressive Competitor Response Related Vs. Unrelated Diversification
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
BENEFITS MEMBERS
GEAR STRATEGIC RESOURCES & CAPABILITIES OF REI
Creates Value For Existing Members Increases Benefits To Attract New Members Improves Member Engagement
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
FULL ALTERNATIVES MATRIX
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
Criteria Importance MemberCommunity
WearableTechnology
Fashionvs.Func;on
B2B–CorporateAdventures SpecialtyShops
BrandEquity HIGH +2 +1 -1 +2 0
PromotesCo-Op&Mission HIGH +2 +2 0 +1 +1
AUractsMillennials HIGH +2 +2 +2 +1 +1
AUractsWomen MEDIUM +1 +2 +2 0 0
AUractsDiversePopulaXons LOW 0 0 0 0 0
ProfitabilityST MEDIUM -1 -1 +2 +1 -2
ProfitabilityLT HIGH +1 0 +1 +2 +2
Risk/Feasibility MEDIUM +1 -1 -1 -1 -2
CompeXtorResponse HIGH -1 -1 0 -1 0
BenefitsMembers HIGH +2 +1 +1 0 +1
EnvironmentalImpact HIGH +1 -0 0 0 -1
TOTAL 10 5 6 5 0
BENEFITS MEMBERS
COMPLETE SWOT ANALYSIS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
THREATS • Amazonandotherlowprice
compeXtors• ITchallenges-integraXon• Shi]toonlinepurchases/people
whogotothestorebutfindthedealonline
• Showroomeffect
• Corporatemindsethasregionalappeal
• SocialmediamenXons• Changingdemographics• OmnichannelcompeXtors• LowfitnesslevelsinUS• EnvironmentaldegradaXon
OPPORTUNITIES • Moresocialmediapresence• BeUeradverXseandpromoteCSR
pracXces• SporXnggoodsgrowthpotenXal• BeUerreachingofnon-members• Socialresponsibilityand
consciousnessmovement• Loyaltyprograms• Youth/corporatesponsorships
• ConnecXonbetweenonline&brickandmortar
• Technology/Omnichannel• Increaseproductreviews• Elevatebrand• Globalexpansion• Morepersonalizedcustomer
experienceusingtechnology• Capturefemaleshare
STRENGTHS • 6millionmembers• Extremeloyalty• Highmarketshareinoutdoor
equipment• Co-opstructure• →dividendsalesincenXves• →ownershipstructuredifficultto
buyout;independence
• Brandequity• Moderateonlinepresence• Economiesofscope• In-storeexperience• EmphasisonsustainablepracXce• Growingindustry• NewmemberacquisiXonsrising• Employeebenefits
WEAKNESSES • Co-opmakesithardtoraise
capital• Employeeperformancemetrics
(unclearexpectaXonsandsuccessmetrics)
• Generousreturnpolicycreatesfinancialloss
• REIprivate-labelbranding
• Globalexpansioneffortshavefailed
• RelaXvelymatureoutdoorindustry
• UnderuXlizaXonoffemalemarketshare
BENEFITS MEMBERS
MARKET EXPANSION GRID
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
• Extend“optoutside”markeXngcampaign;brandproducts/bagswithit
• EnhancedadverXsingonco-opstructure-makeitrelevanttoyoungerconsumer
• Outdoorschoolexperiencesforcorporate/othergroups:partneringwithcompaniesinsteadofjustaskingforsignups.Chargehighfees
• Morefashionableproducts(clothes,highpopularitygearbrands,etc.)
• Wearabletechnology(i.e.fitbit),trackingofoutdooracXvity
• MembershipCommunityApp• Expandprivatelabeltoallproductsegments
• SpecialtyShops;targeXngthelocalspecialtystoresbytakingoneREIsportorlineandcreaXngabrickandmortarstoreforthatline.
• ExpandintosporXnggoodsmarkets(fishing,hunXng,etc.)
Existing Products New Products
Exi
stin
g
Mar
ket
s N
ew
Mar
ket
s
Is th
e m
yRE
I ap
p:
VRIO FRAMEWORK
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
• Tothemember?Yes,makesshoppingatREIandvisualizingyouroutdooracXvityeasier
• TotoCo-Op?Yes;promotesfurtherengagementwiththebusinessandthereforesalesandoutdooracXvity
VALUABLE?
• Yes;differentelementsoftheappexistalready(inseparateoutdoorappsordifferentcompanies)butthemembershipmanagementandcommunityaspectsoftheappdon’texisttogetherinasimultaneousexperience.REIfillsthatgap
RARE?
• No;TheadvantageoftheappincorporatestheREImemberbasewhichisuniquetoREIandinherentintheirCo-Opstructure
• No;theappenhancesthein-storeexperience,whichisextremelydifficultforothercompaniestore-create.
EASY TO IMITATE?
• Yes-REIalreadysupportsoneapp.Thiswillbeintegratedwiththecurrentshoppingappandmemberswillbeabletousethemtogether.
ORGANIZED TO CAPTURE
VALUE? Is th
e fi
rm:
ROOT CAUSE ANALYSIS
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
LowAIrac;venesstoMillennials
PriceSensi;vity
REIfocusesonfuncXon&qualityoverlowprices
Highpricecommunicateshighquality
REIcarriesalmostexclusively
premiumbrandsHighpricedmaterialsmakelowerpricesdifficult
Urban>Suburban/ruralliving
Youngadults“seUlingdown”laterthanearliergeneraXons
VolaXlejobmarket
Millennialsgoing
outsideless
ViewasagroupacXvity
SpendmoreXmewithtechnology
UndereducatedonoutdoorrecreaXon
products&skills
LackofXme
VolaXlejob
market
Demandingschoolschedules,elevatedratesofhighereducaXon
FITNESS APP GROWTH
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
WOMEN ARE
18% MORE LIKELY THAN MEN
TO SPEND TIME OUTDOORS WITH FAMILY AND FRIENDS
BRAND EQUITY
FOREIGN EXPANSION
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
Japanese chatting app was banned by Chinese government in 2015 Line now sells cupcakes, coffee mugs, tote
bags and gained huge popularity
ADOPTION OF SECONDARY APP
TRAILHEAD | ENVIRONMENT | GEAR | SUMMIT | SWITCHBACKS | ROAD MAP | Q&A
Techcrunch.com reports that Facebook Messenger has been downloaded over 1 billion times from the Google Play store. Our two apps will have similar connectivity that the main Facebook app and Facebook Messenger app have, so we anticipate a similarly positive response to having two separate, faster functioning apps http://techcrunch.com/2015/06/09/the-new-facebook/