Sports Authority in Australia

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Sports Authority in Australia

• Eric Augst
• Anthony Galgano
• Jonathan Head
• Chris Johnson
• Adam Robbins

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Australia Facts

• 21 Million People
• 630 Billion GDP per capita of 31,900
• Biggest Cities Sydney, Melbourne, Brisbane
• 44.4 Ages 29 under
• 39.89 Ages 30-59
• 15.8 Ages 60

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• Caucasian 91
• Asian 8
• Aborigines 2

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SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats

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Strengths

• Cost advantage
• New high quality brand
• Large inventory
• Large variety
• Lots of in-house capital to invest

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Weaknesses

• Unknown Brand Names
• Lack of control over all aspects of company
• Brand Name
• Reputation
• Management
• Unknown territory for Sports Authority

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Opportunities

• Hugh market w/ unfilled customer needs- sports
  oriented culture
• Australia welcomes free enterprise and
  entrepreneurship
• Free Trade Agreement
• Young Population
• Currency Conversion Rewards
• Good weather year round in coastal cities
• Adoption of U.S. Culture

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Threats

• Competition
• Rebal Sports - Biggest Competitor
• Online Sales
• Niche Stores - Surf Shops, Golf Pro Shops
• Substitute products
• Growing TV and Internet Culture
• Currency Risks

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Segmenting the MarketBy Population Density
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Segmenting the MarketBy Age
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Major Competition

• Rebel Sports
• Nearly 50 stores (most of which near Sydney and
  Melbourne)
• Over Au22,000,000 net profit last year

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Positioning

• Initial low pricing approach
• benefit of quicker entry into Rebel Sports market
  share
• benefit of name recognition based on low costs
• Strong Advertising Campaign
• to gain name recognition quickly

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Products to Bring

• Based on closely tied demographics, slight
  adjustments if any will need to occur for our
  venture to Succeed.
• Our research suggest that five particular
  industry products thrive in Australia.
• Based on this analysis we will primarily but not
  exclusively base our product decisions and
  placement on these sports.

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Recap of Australias top 5

• Golf
• Rugby
• Swimming
• Tennis
• Cricket

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Companies Used

• Luxoticca, has the largest market share and
  international reach, within the sunglass
  industry.
• Nike, and Reebok, based on international share
  and acceptance.
• Ping, Callaway, Titleist
• Addidas
• RAM Rugby products
• Speedo
• Slight Surf involvement based on geographic and
  psychographic trends.

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Product analysis

• Overall industry product area Mature stage
• No language change, just any slang or language
  that is not understood or may be misinterpreted
  in Australia.
• Minor cultural differences.
• No legal constraints or barriers to entry.
• Australia has the capital and technology to house
  this operation.
• Primary Competition Rebel sports

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Placement/Distribution

• Foreign Direct Investment
• 100 Ownership
• Sydney, Australia 1st city to open store
• 4th largest export destination for sporting goods
  and equipment

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Placement/Distribution Cont.

• Products
• Golf, Rugby, Swimming, Tennis, Cricket
• Customers
• Males Females under age 45
• Intermediaries
• Most Products already produced in Australia
• Directly from Manufacturing/Distribution facility
  to store

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Pricing Decisions

• Positioning
• Sales Objectives
• Pricing
• Australias Economic Standing

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Our Researchand concluding remarks

• www.hoovers.com
• www.ibisworld.com
• www.sportsauthority.com
• www.rebelsports.com
• Our Course text book Global Marketing

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Questions?
We Have Answers