For the Love of the P-O-P Game

Sporting goods merchandising isn't all fun and games. It's big business. Despite a softened retail market, sporting goods retailers were projected to amass $21.9 billion in sales in 2001, up from $21.4 billion in 2000, according to the National Sporting Goods Association. Add in athletic shoes and apparel and that number jumps to $47 billion. Retailers are using innovative merchandising strategies, such as concept shops, to stay in front of the ball. That is no easy task, considering that retail competition is fierce and the sporting industry continues to add new categories and improve existing products with technological innovations.Sporting goods sales are not made up of just bats, balls and gloves anymore. New, alternative sports are fueling equipment purchases. So-called "extreme sports," such as snowboarding, skateboarding, in-line skating and wakeboarding are gaining participants at breakneck speed, according to the Superstudy of Sports Participation conducted by American Sports Data Inc. Other alternative sports, such as BMX biking and artificial wall climbing are also gaining in popularity.According to the report, extreme sports may be taking an extreme bite out of America's favorite pastime. For the year 2000, the study indicated that there were 10.9 million baseball players in the United States, that's 10% fewer players than in 1999 and a 28% slide from 1987 figures.Basketball is crying foul as well. The number of participants in basketball declined 5% in 2000 and is down 17% from its peak in 1997. Soccer figures remain stable, while football has gained in popularity, adding 15% more participants.While 10 of the top 20 growing sports categories are extreme sports or snow-related sports, which are embraced by primarily younger sporting enthusiasts, six of the remaining 10 top growth categories are characterized as driven by older participants. Elliptical motion trainers, stair climbers and general fitness equipment purchased for home use are driving the trend, according to the report.Even as extreme sporting categories attract new consumers, traditional sports are still the backbone of the industry. Golf, in particular, continues to generate a wealth of P-O-P, and manufacturers are using new merchandising tactics to promote new products and technologies.Enter the Concept ShopOne of the biggest changes to impact sporting goods merchandising in the past five years is the mass acceptance of manufacturer-supplied concept shops, says Steve Bostwick, marketing product manager for Phoenix-based Ping Inc. "That's not new to retailing, but it's certainly new to golf," he says. "Anywhere from 100 to, 1,000 feet of floor space is being dedicated to a single brand. A lot of golf manufacturers are jumping into the fray."In 1999, Ping introduced its first-generation concept shop to specialty golf shops. The company is now in the process of updating the design and graphics, and it plans to ship new units this spring. "We're actually doing two different versions of it," says Bostwick. "One is going to be much more modular so that retailers can add or subtract as many displays as they can use. They'll be able to create different looks to meet different space requirements. We also have a larger system that is a one-piece unit."Ping products are not sold through big box retailers because the company feels that its custom-fitted golf clubs require more service. As a result, Ping markets its products in golf specialty stores, and with that comes a unique merchandising opportunity. In 1997, Ping introduced a mobile cart that held clubs and fitting measurement tools. The display merchandised a variety of golf clubs and also served a useful function. It could be kept indoors as a merchandising piece or rolled out to the driving range to aid in custom fitting the clubs.Bostwick is currently in the process of changing out the existing carts with a newer, updated model. Last spring, 200 carts were replaced and another 2,000 will be swapped out by April 2002.Debra Weekley, sporting goods retail development manager for Nike Inc., Beaverton, Ore., says that store-within-a-store shops have a strong appeal for retailers. "That's been a very successful strategy for us and for our retailers," she says. "We sell a lot of product that way because the concepts of the products work together."Brooks Sports Promotions Manager Gina Short says the Bothell, Wash.-based company often purchases floor space for concept shops in sporting goods stores. The amount of space and the location are negotiated before the display is designed. This can make working with retailers easier, because the retailers are committed and compensated for displaying product. "If you're paying for space, you still have to work within the rules and guidelines of the retailer," she says. "That is determined up front with the buying team and the marketing team. But it's easy to get stuff put up if we paid for it because it is written into the contract."Brooks supports its Epic line of high-performance out-door apparel products with a display that illustrates the benefits of the fabric. To demonstrate the technology and innovation behind the fabric, a piece of the fabric is attached to a cylinder with a pump. When the pump is depressed, consumers can see how the fabric continues to allow air to pass through it while remaining waterproof. "Oftentimes, it's hard to talk to consumers about really technical stuff, so a good visual makes all the difference in selling this type of product," says Short.K2 Ski Corp.'s Director of Marketing, Andy Luhn, agrees that technology can be a very difficult thing to convey to consumers. In addition, merchandising that is designed to educate consumers about a particular technological advancement often has a limited life span in-store since technologies are always changing and improving. That's why Luhn has decided to take a different approach with K2's merchandising."Instead of highlighting some of our technology features, this year we're focusing on K2," says Luhn. "In the past, we've had some specific merchandising to highlight the construction or technology that goes into our products. This year, we're simply doing a 3-D brand sign with our logo. It's more brand art."The brand pieces aren't so time-sensitive," he continues. "They won't necessarily promote a technology that will have to be switched over in a year or two when it becomes obsolete. Usually, when a technology becomes obsolete, so does the merchandising."Luhn says that part of the change in strategy is due to high employee turnover rates in stores that sell sporting goods. Since employees don't stay around long enough to learn about the technology and its benefits to consumers, retailers are less likely to place displays that rely heavily on technical knowledge, he says.Still, the Vashon, Wash.-based company does take advantage of market-place trends when they present themselves. Two years ago, the company noticed an increased concern about safety among consumers. Noting that helmets for bicyclists were very popular, the company produced a skiing helmet. The product introduction was supported by an in-store promotion and P-O-P."We did a promotion in-store with small but very effective P-O-P that hung on the tips of the skis and had a sign card that fit into it," says Luhn. "It was effective because it didn't take up much space."K2 also produced a helmet display that highlighted the features and benefits of the helmet. A promotional message informed consumers that if they spent more than $520 on a ski package, they would receive the helmet free. "It had a good perception of added value to the sale," says Luhn. "It got people's attention."Concept ClutterThough concept shops can help boost sales, many manufacturers are finding that they can also add to store clutter and make getting through to consumers even more difficult. Wilson Sporting Goods Co. is addressing this issue by simply trying to build better displays. The company has shifted its focus away from temporary displays to more permanent, high-end units. "We're going in a different direction with our P-O-P," says Cindy Daws, assistant sales planning manager for the Chicago-based company. "We want to focus on technology. I think we're more visible at retail right now because of that."The philosophy behind new display designs is to match the look of the display to the technology that the company touts as superior. New display pieces feature a high-tech, futuristic design, says Daws. Another goal is to prominently display the Wilson brand name.For mass merchants, permanent displays aren't feasible, so the company produces some temporary materials that support the Wilson brand and highlight value-related issues. "In mass merchants, you know that the customer is looking for a deal, and we want to send P-O-P that is temporary but still talks about Wilson as a great brand name," says Daws. "We don't talk as much about technology as we would on the sporting goods retailer side."In addition to temporary materials, mass merchants also require other special considerations. Case packs, for example, become a key issue. Each retailer wants a different configuration, says Daws. Many retailers also request a customized product. "They want it to be specialized as a Kmart-only ball or a Wal-Mart-only ball," she says. "With that comes special packaging."Wilson also continually grapples with competitive pressures. New display ideas and new placements in-store don't go unnoticed by other marketers. "If a retailer has one display from Wilson and everyone sees it, then Rawlings, Spalding and everyone else is going to want to get their display in there," says Daws. "A lot of times, a retailer might anticipate ending up with a store full of vendor-specific displays. I think that might take away from our display's appeal."However, a good idea always wins out. When Wilson purchased bat maker DeMarini Sports, Daws says marketers wanted to design a display to encourage retailers to purchase more bats. With a specified buy, retailers received the display free."Bats have been a difficult product to display for some retailers," says Daws. "This display organized the bats and really worked great to increase sales."Sales were affected to such an extent, says Daws, that retailers had an incentive to make sure that the display was consistently kept filled with product.Marketing in the RoughEven with concept shops, it's hardly one size fits all. Ping's Bostwick has found that it's impossible to be all things to all retailers with the same display. Even stores within the same chain often have very different store designs and planograms. Independents complicate matters even more, since store sizes and dimensions can range from a few hundred square feet to several thousand square feet. As a result, Bostwick has tiered Ping's display offerings to give retailers as much display flexibility as possible.The first tier features a small display that holds either 10 metal wood clubs or two sets of irons. This is a base-level display that can go into a store as small as 500 square feet. The second tier has larger displays that support a "family" look, says Bostwick. "A larger retailer can put in components of this tier as standalone pieces or put them together and create a store-within-a-store concept shop," he says.The third tier is a one-piece unit that merchandises the whole assortment of Ping's product line. "It's for a retailer who has really made a commitment to carrying all of our products and wants to display them in the most eye-appealing manner," says Bostwick.Nike's Weekley says that since her company sells its products in a wide array of market channels, from 5,000-square-foot stores to 100,000-square-foot stores, a varied display program is essential. She notes that different customers are shopping in different channels. As such, display materials have to communicate with them in different ways."We're continually looking at different retail environments and evaluating how we can get our message to cut through the clutter," says Chuck Eichten, design director for Nike. "Retailers are looking for creative solutions from us. Typically, we'll come to them with an idea for something we think will be effective in their stores. Then we'll center our conversation around, 'Is it big enough? Is it too big? Are there too many pieces?' "Weekley points out that even for an established brand like Nike, getting displays placed isn't a no-brainer. "The Nike name gets you about halfway there because we are a very important vendor with a lot of our accounts," she says. "But we still have to prove to them that our display holds a good capacity, the graphics are relevant to their consumer and it will have good sell-through possibility."K2's Luhn has found that good P-O-P isn't always good enough. "Unless you come up with the best merchandising program, you are in competition," he says. "Floor space is very valuable. A lot of specialty retailers have smaller spaces to deal with per category line. They can't afford to merchandise each section even if they had great P-O-P for each one of those lines. They simply don't have the space."Luhn says that K2 doesn't alter its merchandising across channels. The company's technology is carried through its entire product line so the merchandising pieces are still applicable, from mass merchants to specialty sporting goods stores. "The only time that we would do something different is for our preferred dealers," he says. "Based on volume or depth of buy, they might get a tiered program that wouldn't be available to smaller, specialty retailers or smaller mass merchants."Coach RetailerMany stores are taking a more active approach in their merchandising. Some chains are attempting to standardize their merchandising by designing sign holders with changeable graphic panels and category management systems.Within The Sports Authority, David Broadwell, vice president of visual merchandising, says the Fort Lauderdale, Fla.-based company wants more artistic control over displays that go into its stores. While Broadwell issues specific guidelines regarding the colors, size and shape of displays, he admits most of the P-O-P that goes into his stores is primarily designed by The Sports Authority and accented with some vendor-supplied signs and displays. "Our concerns usually surround a display being too tall or a manufacturer not understanding how the customer shops at The Sports Authority. We also want a look that complements the store environment," he says.K2's Luhn has witnessed firsthand more involvement on the part of retailers. "What they'll do is approach us and say they want to do a display with these products from our snowboard, ski and bike departments," he says. "Or they may merchandise their ski and bike sections based on what they like, and try to get funds from manufacturers to support that. They'll feature our brands and products in it, but it could be made up of several different brands.""A lot of chains are going out of their way to develop their own P-O-P frames that work for their space and give them their own branding," says Nike's Weekley. "In that case, we work with them and work within their parameters."Though mass retailers and big-box sporting goods stores are strong forces in the sporting goods industry, they don't yet dominate other retail channels, says Brooks' Short. Independent stores remain a significant distribution channel for sporting goods manufacturers, particularly those that cater to specialty sports, and working with them can pose challenges and opportunities.Short says smaller retailers are often more receptive to in-store campaigns since they don't have firm corporate policies regarding display placement. "If we're going into a smaller, specialty shop, it's really a matter of working with them," she says. "A lot of times they have needs and we'll plan for a way to address those needs. It usually comes down to what the single owner of the store wants to do."Jamie Spicer, marketing coordinator for Scuba Pro, El Cajon, Calif., says the diverse independent dealer network that sells the company's scuba diving equipment can make consistent merchandising difficult. She says that about 20% of her retailers actively merchandise equipment and gear. But when they do get displays in-store, the problem may be that retailers like the P-O-P too much -- after a few weeks in-store, competitive equipment sometimes finds its way onto Scuba Pro's displays."If you make a display, eventually everybody's product is going to end up on it," says Spicer.A similar thing happens with the company's brochure holder, Spicer says. "If we have a brochure, we might send it out with a counter stand or something," she says. "The minute it gets there, it's either forgotten or filled with other materials. If it runs out, retailers don't think to refill it with more brochures."This ambiguous attitude toward P-O-P on the part of retailers forces Scuba Pro's regional sales managers to visit dealers more frequently to ensure that the company's P-O-P is being used to its full advantage. The regional managers encourage them to give Scuba Pro's products more prominent positions at retail.Despite the obstacles and challenges that her company has faced in maintaining a consistent display presence with retailers, Spicer hasn't given up. "This past year, we've done a couple of counter cards and I sent out some fliers on a new product," she says. "It's obviously very important to be out there and to have your products shown in a prominent place in stores."Regardless of the market channel and sporting products being sold, good merchandising, like good coaching, is about the details. Manufacturers with the right game plan who provide sporting goods retailers with effective in-store solutions will be in a league of their own.

For the Love of the P-O-P Game

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