November 17, 2011
Table of Contents
* Introduction……………………………….Pages 3-4 * Current Marketing Situation…………….Pages 4-5
* Marketing Mix and Target Market……..Pages 6-7
* Executive Summary………………………Page 8
* Work Cited………………………………..Page 9
Introduction to the company and Industry
Skullcandy is a company that marketing and sells many things. These things may vary from headphones and earphones all the way to clothing such as hats and T-shirts. Skullcandy was founded by Rick Alden in Park City, Utah. (Wikipedia, 2011) Rick started it in 2003 by a product called the Skullcandy Portable Link. The Skullcandy Portable Link is a headphone that uses the LINK system and is combined with hands-free cellular technology. Mr. Alden brought the product to the International Consumer Electronics Show in Las Vegas, Nevada. Many people really liked the idea because it allowed people to listen to music on a cell phone, but when a call came in the music would stop and you could answer the call with the headphones still in.(Wikipedia, 2011) The first place to buy the Skullcandy products was, Milo Snow & Skate, a action sports shop in Utah. (Wikipedia, 2011)
Since its start in 2003 Skullcandy has sold many different kinds of headphones and Appeal. By 2005 Skullcandy brought its annual sales up to 1.3 million dollars and became ranked as the third most-sold of headphones in the United States market. In 2008 Alden was a part of the top one-hundred venture entrepreneurs in the nation. Also, in 2008 Skullcandy was named “the world’s coolest ear bud” by “Fortune Magazine”. (Wikipedia, 2011) In later part of 2008 Skullcandy became backed financially by Goode Partners. Goode Partners is a private equity firm. (Wikipedia, 2011)
In the year of 2009 Skullcandy hit the one-hundred million dollar mark in sales, and Alden was quoted saying “We’re gunning for number one” according to the Salt Lake City Tribune. On January 28, 2011 Skullcandy filed for initial public offering with the Securities and Exchange Commission. (Wikipedia, 2011) This means that Skullcandy will be able to sell stocks to the public. The files were confirmed on July 6, 2011 and now can sell stocks to the public. Skullcandy expects to reach 150 million in sales by the end of 2011. (Wikipedia, 2011)
Skullcandy is a big supporter of Breast Cancer. In 2007 Skullcandy donated $36,723.80 to “Boarding for Breast Cancer”. “Boarding for Breast Cancer is a non-profit fundraiser to help educate kids on breast cancer and the dangers it brings to young and old. Since 2006 Skullcandy has donated five percent of anything pink that it sells to “Boarding for Breast Cancer”.
Skullcandy headphones are sponsored by many outdoor sport athletes. Many sports also help out by letting Skullcandy sponsor big events. Some of the sports are snowboarding, skateboarding, and surfing. Skullcandy has now become one of the major suppliers for the people who enjoy these sports. Some of the sponsored athletes are Terje Hakonsen, Louis Vito, Clay Marzo, and Balaram Stack. (Wikipedia, 2011) Even big-time hip-hop artists such as Snogg Dogg and Jay-Z have helped design some of Skullcandy signature Skullcrushers. (Wikipedia, 2011) Between these two forms of marketing Skullcandy is going in the right direction.
Current Marketing Situation
Skullcandy’s marketing situation is on the incline right now. So, of the things that Skullcandy headphones have going for them is the fact that they are new and not many people have heard about them yet. Its strengths are that the company keeps coming up with new designs and always thinking of the next big thing. Skullcandy has many supports from athletes to stockholders and has been going up (besides 2010) in stock every year. (Russell, 2011) Skullcandy is a smaller company right now and its customer service is highly rated. Also, Skullcandy headphones have a life-time warranty on them and will...