The Active Approach: A Guide to Sporting Goods

A healthy lifestyle is the goal of more people of every age. This article describes how to use sporting goods in your program and where to turn for information and advice.

One of the more popular strategies among brand marketers is to connect with the active lifestyles of today's consumers. Images of people sweating on exercise machines or on playing fields and courts flood the airwaves and print media. Statistics show that this is not all image: People are showing more interest in sporting activity, and sales of sporting goods have been growing steadily. For those in the premium and incentive business, this trend provides an opportunity to add value to incentive programs for consumers, employees, and dealers and distributors. You just have to get the right goods for your particular group. (For an overview of the incentives field, see Doc. 3010, Premiums/Incentives Core Overview, and Doc. 3020, Strategies for Success).

DEFINITION

Before you go off in search of the right sporting goods to buy, it's helpful to know what kinds of merchandise are included in this category. Of course, there are the obvious items: bats, balls, rackets, paddles, and pads for all manner of team and individual sports. But sporting goods is a deep category, as a trip through the industry's sprawling trade shows will attest (see Trade Shows). You not only have to include everything from billiards to trap shooting, but also the wide array of accessories and other items that round out the gear used by sports enthusiasts. Sporting goods include fishing and camping gear, exercise equipment, apparel, and footwear. Indeed, these product categories are among the most lucrative in the industry. The bottom line: If you broaden your concept of sporting goods to include a wide selection of items, you will similarly expand the appeal of your program.

STATISTICS

In its “Sporting Goods Global Market in 2005” report, the National Sporting Goods Association (NSGA) reports that retail sales of sporting goods, including athletic and sports equipment, shoes, and apparel, had reached $48.9 billion in 2004 and was expected to exceed $50 billion in 2005. Sales of sports equipment, at $22.9 billion, accounted for the greatest portion of that total. The largest growing major segment was athletic and sport clothing, which showed a 6 percent growth rate and accounted for $11.2 billion. Within the major segments, sales of recreational transport equipment (including bicycles, pleasure boats and motors, recreational vehicles, and snowmobiles) were particularly strong. Some of the other equipment product categories that showed growth included hunting equipment, exercise equipment, camping equipment, fishing tackle, and golf equipment. The only equipment categories to show declines were wheeled skates and scooters, water skis, and hockey and ice skates.

PROS AND CONS OF SPORTING GOODS

Sporting goods offer you the opportunity to reach people on a personal level, because people tend to identify closely with their favorite sports. Fly-fishing enthusiasts have an affinity for their gear that they'd never feel for a TV set or clock radio. Recognizing that kind of enthusiasm is a great way to bond with your program participants. The down side to sporting goods, ironically, is closely linked to the benefit: Because people take a strong personal interest in their gear, it is sometimes hard to find just the right selections for your participants.

WHAT'S HOT

The big theme in sporting goods today is lifestyles: More people are active later in life, especially with regard to fitness and exercise. In terms of participation, the leading sport activity in the U.S. today is probably exercise walking. But survey any employee or consumer group and you will find that activities like swimming, bicycling, fishing, exercising with equipment, camping, bowling, basketball, soccer, and hiking are also popular.

And keep in mind that a health lifestyle isn’t just for the young. The “baby boom” generation, poised to enter its 60s, is determined to maintain their health and stay active well into their senior years. And today’s seniors are already major consumers of health and fitness products. According to a 2005 study by American Sports Data Inc. (ASD), the number of fitness participants aged 55 plus increased by 33 percent from 1998 to 2004, compared to zero growth for fitness participants in the traditionally sports-minded age 18-34 category. In fact, ASD reports that 25 percent of the nation’s 41.3 million health club members are now over 55.

CRITICAL ISSUES

• Make careful selections. More than with other merchandise categories, the degree to which you match sporting goods to the lifestyle of the recipient can make or break a program. After all, most households long for upgraded video or stereo equipment, but only a dedicated golfer can appreciate a $200 putter.
  
  
• Know your demographics. Pay attention to such factors as age and region. For example, participation in team sports drops off markedly as you move up the age scale. Freshwater bass fishing equipment is much more popular in the Southeast than in, say, the greater New York area, and just the opposite holds true for skis.
  
  
• Fanatics vs. dabblers. A hard-core mountain biker will probably not get sweaty-palmed over a $300 bike. However, someone who rides occasionally on weekends might. That logic holds true in almost every sporting goods category. This is less true in apparel, making it a relatively safe bet. Obviously, it's up to you to decide what's best for your group.
  
  
• Use a theme. Sporting goods lends itself particularly well to theming, because you can group all sorts of premium and incentive items around a popular sport. With a golf theme, the product grouping may include everything from clubs and lessons to apparel and even air fare to a golf resort. Licensed merchandise has trophy value way beyond the utility of the item itself, and it also makes for interesting theming possibilities. You'll see team logos on all sorts of items at a wide range of price points. What better way to group such disparate items as caps, clocks, sports equipment, and travel than through theming by sport?
  
  
• Make the most of brand-name goods. Program managers should keep in mind that branded products in general have higher perceived value to incentive program participants and thus have a corresponding higher trophy value.

PRICE POINTS

An unusual characteristic of sporting goods is that there is apt to be a dizzying array of options within a single product category. Among baseball gloves, for instance, you'll find items for $15, $35, and $100 from every major manufacturer. Mountain bikes can range from $300 to $3,000. To the untrained eye, all the products within a given category may look the same.

CASE HISTORIES

• A large waste management company, seeking to rekindle the appeal of its employee safety program, looked for merchandise and certificate options that would connect with workers and also underscore the personal benefits of an injury-free workplace. A survey of its 95-percent-male, blue-collar workforce revealed that almost everyone took part in weekend sporting activities ranging from golf and fishing to league bowling. Company managers felt that workers would instantly grasp the concept of the proposed program: Fewer on-the-job injuries mean more time for leisure activities. Thus they substituted an array of sporting goods for the traditional offering of family dinners and merchandise gift certificates. Enthusiasm for the program was so high that a majority of the participants carried their points over into a second year to qualify for the highly desirable top-tier awards.
  
  
• A midsized municipality wanted to promote a ride-share program for employees. The motivational strategy included a year-long incentive program that would reward participants for continual participation. Managers wanted prizes to reflect the spirit of alternative commuting in a fun way, so they selected merchandise that included running shoes, inline skates, and bicycles. Not only was this innovative program a success within the city government, but it helped generate a surprising amount of publicity for the city's traffic-reduction policy.
  
  
• A major long-distance telephone company grouped a large assortment of merchandise, travel, and certificate options around a lifestyle theme in an ongoing consumer incentive program. In contrast to a competitor's program that focused on free phone minutes, awards included everything from discounts on airline tickets to baseball mitts, golf apparel, and camping gear. The emphasis on quality awards paid off, and the program was successful for several years.

FINDING A SUPPLIER

Most major sporting goods manufacturers have special-markets departments that cater to the premium/incentive market. Large retailers offer gift certificates, and some offer customized incentive programs (see Doc. 3060, Gift Certificates). The best place to find these suppliers is at trade shows, and the associations that sponsor the two major shows are themselves are a good source of names. The following service is designed to facilitate the process of finding qualified suppliers and making sure that you have access to the best people for the job:

To find a supplier, go to #9520, Supplier Finder.

ASSOCIATIONS

• National Sporting Goods Association (NSGA) represents 22,000 members, most of them sporting goods retailers. NSGA is an excellent source of consumer-focused industry research. Call 847-296-6742 or go to http://www.nsga.org.
  
  
• Sporting Goods Manufacturers Association (SGMA) represents suppliers and has a number of valuable research materials on hand. Call 561-842-4100 or go to http://www.sgma.com.
  
  
• The Incentive Federation was formed to protect the rights of organizations to motivate customers and employees through the intelligent and ethical use of incentive programs. Comprised of the leading associations, trade shows, and some of the top suppliers in the incentive field, the Federation monitors Federal regulations that could affect the proper use of incentive programs and lobbies against proposals that could hinder the ability of businesses to properly use incentive programs. As part of its industry services, the Federation also conducts the only regular research on use of incentives by U.S. organizations, and manages the Incentive Promotion Campaign, the industry-wide effort to promote professional use of incentives and that underwrote this Web site. For information, call 908-233-4009, e-mail hhenry333@aol.com.

TRADE SHOWS

For a list of Industry Events, go to #9510, Calendar of Industry Events.

RESEARCH

The Sporting Goods Manufacturers Association (SGMA) (www.sgma.com) offers a wealth of published information. Some reports, such as the "SGMA Recreation Market Report," are free. Others are available only to members.  Call 202-775-1762.

The National Sporting Goods Association (NSGA) (www.nsga.org) offers a number of surveys and other publications. Call 847-296-6742.

PUBLICATIONS

Potentials publishes good articles on promotional-product uses, strategies, and trends. Lots of photos and case studies. Free to qualified readers. Call 612-340-4807.

Incentive magazine covers all aspects of incentives, from premiums to travel. Free to qualified readers. Call 212-592-6263.

Promo is a monthly magazine for people who make promotion marketing part of their job. Heavy packaged-goods emphasis. Free to qualified readers. Call 203-358-4351 or 800-463-4054.

OTHER RESOURCES

SGMA's site, sgma.com, is a great resource, and you can get a lot of information about fitness equipment by clicking on fitnesszone.com. Check the following Web sites for a look at the latest product offerings from various companies:

Rawlings Scoreboard: rawlings.com

Reebok: planetreebok.com

Spalding Sports Worldwide: spalding.com

Wilson Sporting Goods: wilsonsports.com.

SGRnet, the business-to-business Web site for sporting goods professionals, is a comprehensive source of sporting goods market research and industry information: http://www.sgrnet.com/.