Analysis of Volcom Inc.

Topics: Financial ratios, Asset, Balance sheet Pages: 8 (2400 words) Published: November 10, 2011
Volcom Inc. SWOT
Volcom was acquired by PPR in May 2011, I did the analysis from the standpoint that Volcom's management still remained independent. 1) Volcom's advertising and promotional strategy consisted of athlete sponsorship, print advertisements, branded events, online marketing, branded retail stores, music, film, and the Featured Artist Series. The company has stayed true to its board sport heritage since day-one recognizing a portion of their customers to be "poseurs" or groups of people who want to fit in with the current fad but have no real connection to what the brand represents. Through their corporate sponsorship of extreme sport athletic events and the development of both a music label & production company, Volcom has found a low-cost grassroots way to market their product line to loyal customers. This doesn't mean that Volcom doesn't value the business of the "poseur" or fad-follower customers, but management has maintained a strategy that will target and maintain their core market without "selling out". Volcom has established itself as a true board sport company, producing products & a marketing strategy in-line with that concept. This strategy runs from the bottom all the way up to top management; when examining the board of directors you find that the majority of professional in key roles have come from a skate, surf, and board background. Who better to design the overall direction for a company looking to stay true to its extreme sport roots than people who have been involved in that very industry their entire lives. Volcom has continue to integrate the mentality of those involved in extreme sports throughout their business strategy; the companies very logo "The Volcom Stone" represents the euphoric state one feels when riding, whether it's on snow, water, or concrete. The very philosophy behind the brand, outlined as “youth against establishment,” demonstrates how management is in touch youth culture and the cultivation of young creative thinking. Volcom was established during a period of time when skating, surfing and boarding was looked down upon, the philosophy youth against establishment only help to solidify the brand loyalty of people who connected with this movement. "The people behind the company consider themselves to be a family of people not willing to accept the suppression of the established ways." (Volcom Case 22). Overall when evaluating this company you couldn't ask for a management team and marketing strategy more in-line with the company's mission and philosophy; this is a company created by the very same type of people that Volcom is targeting. 2) Volcom's distribution strategy is somewhat unique but to date has been very effective as the company has expanded across the United States and into markets abroad. The company has practiced a reinforced its elite brand image by selling it in distribution areas that promote this concept, such as independent skate and surf shops (promoting the ideal that Volcom was created by boarders for boarders) and high-end retail chains. Volcom specifically targeted retailers in that were already involved in the board sport market, thus maintaining the Volcom brand and also quickly and effectively making the Volcom product line available to consumers who appreciate the product. Retails companies like Pacific Sun and Zumiez were perfect outlets to distribute the Volcom product since they already attracted consumers involved in the board sport concept. Not only was Volcom's management team very effective at distributing their products to retailers that would promote their brand image but they also collaborated with these specialty retailers by providing in-store marketing displays, which included racks, wall units, and point-of-purchase materials that promote its brand image. To date Volcom's management team has been very effective in both promoting their brand name as well as practicing savvy business strategies to get their...
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