2.
Jade Lennstrom, Brent Villiott, Michael O’Neill, McCall Schilling
Industry Analysis
SUMMIT AT SNOQUALMIE
Owned by: Boyne Corporation (Parent company to Big Sky Resort, Brighton Ski Resort, Boyne Mountain
Resort, Crystal Mountain Resort, Loon Mountain, Sugarloaf, Sunday River Ski Resort and Summit at
Snoqualmie)
INDUSTRY
Ski & Snowboard Resorts in the US: This 2.6 billion dollar industry comprises establishments engaged in
operating downhill, crosscountry or similar skiing areas, or operating equipment, such as ski lifts and tows.
These establishments often provide food and beverage services, equipment rental services and ski
instruction services. Fourseason resorts without accommodations are also included in this industry, but
companies that own and do not operate ski resorts are excluded from the industry. There were 477 ski
resorts in the US in 2013.
OVERALL MARKET
Market review: What are the key factors that influence demand in your industry
Average annual precipitation, Per capita disposable income, Time spent on leisure and sport activities,
Domestic trips by US residents, Inbound trips by nonUS residents.
According to IBISWorld, industry competition as well as barriers to entry (capital intensity) are high and
steady. The ski resort industry is highly regulated with low governmental assistance. The industry was
severely affected by economic recessions because of its recreational category and reliance of consumers’
3. disposable income. While 4 resorts dominate over 70% of the ski resort in Washington state market, the
remaining 30% of the market is made up of 17 small resorts.
PORTER’S FIVE FORCES ANALYSIS
LOW Threat of new entrants: The barriers to enter the Ski & Snowboard Resort industry are extensive
research/planning, permitting, lack of location and high amounts of capital for costly infrastructure
LOW Buyer power: Customers cannot negotiate how much they will pay for a lift ticket or seasons pass,
therefore have low buyer power.
LOW Supplier power: Besides the electricity company contract to power the chairlifts and lodges, the
Summit at Snoqualmie does not deal with a high amount of supplier power.
MEDIUM Threat of substitutes: Washington State has 21 Ski Resorts. 7 (including the Summit at
Snoqualmie) are less than 130 miles of the Seattle area. Consumers will choose to ski at any of the 21 ski
resorts in Washington, though the target market lives in and around the Seattle area, and are not willing to
drive more than 2 hours to reach the ski hill.
HIGH Competitive intensity: There are 21 individual ski resorts within Washington State. The main
competitors for the Summit at Snoqualmie are Stevens Pass, Crystal Mountain, and Mt. Baker. Because
Snoqualmie targets individuals who live in the greater Seattle area and make day trips to go skiing, their
main competitors will all be less than a 2 hour drive away from the Seattle metropolis.
5. Intensity between the competitors is the most important force in this industry. Each mountain is targeting the
same market: skiers and snowboarders in the greater Seattle area. Outdoor activities in the mountains are
luxury expenses, and mountain resorts are competing for the limited market in Seattle, with a very similar
product offering. Because of this, companies must differentiate themselves by investing more capital into
their infrastructure with new trails, chairlifts, day lodges and places to stay overnight. The barriers to exit are
also high, leaving only selling or leasing the mountain as the only options.
INDUSTRY ATTRACTIVENESS
This industry is not attractive for new entrants. It is costly to open a resort, with the purchase or lease of a
mountain. The daytoday operating expenses are high as well including maintaining terrain, operating
chairlifts and liability insurance. Also, most of a resort’s yearly revenue is brought in during a four to five
month season. Another aspect that makes this industry unappealing is the high dependency on weather
conditions and time of snowfall. If there is not a lot of snowfall, operations will be limited and may result in
not opening at all.
COMPETITIVE REVIEW
Brand competitors: Vail Resorts Inc., Intrawest Corporation, POWDR Corporation
Product competitors: Leavenworth Ski Hill, Mission Ridge Ski Resort, White Pass Ski Resort, Mt Baker
Ski Area, Stevens Pass, Crystal Mountain
Generic competitors: Cross country skiing, snowshoeing, sledding, mountain biking
Total budget competitors: Golf courses and country clubs, casino hotels, bed & breakfast hostels, theme
parks, warm weather resorts
6. Competitive Analysis: Stevens Pass, Crystal Mountain & Mt.
Baker
STEVENS PASS
Their current and past strategies: Although Stevens Pass is not the only pass to offer activities all year
around, it is clear that they are the market leaders when it comes to year round activities. Come spring and
summer, Stevens turns into a premier destination for hiking, biking, and other recreational activities. Stevens
also prides themselves in their award winning sustainable practices, which differentiates them from their
competition. (Mt. Baker also opens up during the summer for hiking and other activities)
Current performance: Approximate Market Share: (Ski resorts in Washington State): 21%
Primary strengths and weaknesses of Stevens Pass:
Strengths: Stevens Pass riders have access to 28 kilometers of crosscountry skiing trails, as well as front
and backside access to the mountain and is one of the only mountains that offer night skiing, which are all
incredibly unique experiences compared to their surrounding competition. Their website is also easy to
navigate, and helps customers plan their trip. Disc Golf, Hiking, and yoga are just a few activities that
Stevens offers over their summer sessions, making it a place that can be explored through every season. A
variety of kids programs are offered, and Washington State 5th graders are even allowed to ride the
mountain for absolutely free.
Weaknesses: While the packaged deals with Leavenworth lodging are a good deal, it’s actually one of the
few options available at Stevens. There is no onsite lodging on the premises, forcing customers to travel
elsewhere to stay the night.
Likely future marketing strategies: It is almost certain that Stevens Pass could benefit from the addition
of onsite lodging. The addition of lodging could create new opportunities for summer camps and multipleday
outdoor activity passes, that would attract a wider array of customers, and give them the opportunity to stay
7. for more than a day.
CRYSTAL MOUNTAIN
Current and past strategies: Unlike other ski resorts in the surrounding areas, Crystal offers lodging at the
base of the mountain to accommodate those who want to go on the perfect weekend getaway. The “Stay
and Play” packages are one of their main draws to attract mountain enthusiasts and families alike. With a
variety of unique places to choose from all with affordable prices, Crystal’s lodging becomes one of their
main selling points and marketing strategies. While competitors have tried to compete with lodging deals in
the past, nobody has been able to match Crystal’s affordable deals and the close proximity. Each hotel
offers unique amenities for their guests, in order to keep them busy when they are not on the slopes. In
addition Crystal Mountain offers a wide variety of restaurants for their guest. Their diverse terrain also is a
big attraction for families with varying levels of skill and interests. Even when you are not on the slopes,
Crystal has found many ways to keep the family busy.
Current performance: Approximate Market Share: (Ski resorts in Washington State): 27%
Primary strengths and weaknesses of Crystal:
Strengths: For many years now, Crystal Mountain has been considered one of Washington’s premiere ski
resorts. Located in Pierce County, Crystal Mountain is Washington’s largest ski area, offering 3,100 vertical
feet, and over 2,600 acres of surrounding land. Crystal has been known to offer a great deal of variety for
every level of skier. Whether you are skiing for the first time or you have been going to the mountain your
whole life, the folks at Crystal Mountain have made it their mission to offer something for everyone. This
level of diversity is achieved by creating 57 unique trails ranging from beginner, intermediate, and expert. In
the recent years, Crystal began offering a mobile application for their riders. People are able to get update
notifications about weather conditions, lift wait times, special events and more. The app includes a GPS
tracking device that tracks you as you go down the mountain and allows you to rewatch your latest run
using their interactive map. This app is the perfect tool for riders to get real time data about their favorite
8. skiing spots and offers great opportunity for Crystal Mountain to share upcoming events with their most loyal
customers.
Weaknesses: One of their major weaknesses is their high prices for day and season tickets. For riders who
are more price sensitive, they may hesitate choosing Crystal over the other mountains in the same proximity
due to their increased prices. For the 2014/2015 season, Crystal is charging $300.00 more than the second
most expensive season ticket, Stevens. In addition, although Crystal is known for their family friendly
atmosphere, they are currently competing with surrounding ski resorts who are offering “Fifth Graders Ride
Free” programs, a big draw for families with younger children. Another weakness is their lack of night skiing,
night skiing is a popular attraction for those who work over 40 hours a week.
Likely future marketing strategies: During this past summer Crystal introduced two new chairlifts into
their lineup, and these introductions have generated a lot of buzz with their most loyal skiers. These new
and improved chairlifts will undoubtedly draw more attention to the mountain, which could potentially attract
first time skiers. The combinations of word of mouth and marketing efforts on their application will play a
major role in the success of these new lifts.
MT. BAKER SKI AREA
Current and past strategies: Mt. Baker Ski Area prides itself on being family owned and operated while
maintaining a friendly small town, laid back feel. This relaxed atmosphere is key to their success especially
because of its close proximity to the college town of Bellingham. Having a moderately low priced ‘student
season pass’ and a multitude of social events including the world renowned Legendary Banked Slalom,
makes Mt. Baker the perfect destination for Western students and young adults alike.
Current performance: Approximate Market Share: (Ski resorts in Washington State): 10%
Their primary strengths and weaknesses:
Strengths: Mt. Baker currently holds the world record for the most amount of snowfall in one season; 1,140
inches of snow in the 199899 season. 2014 marks the 30th year of the historic and internationally known
9. halfpipe race called the Legendary Banked Slalom that brings hundreds of the best athletes from around
the world to the Northwest to compete. In attempt to lure in the skiers and snowboarders of tomorrow, Mt.
Baker offers free season passes for 5th graders, which has proven to be a successful program by turning
these kids into ‘lifelong skiers’. Mt. Baker is a popular place to hike for free in the summer yet does not offer
any servicers in the summer months.
Weaknesses: With a lack of lodging on the mountain, no night skiing, lack of accessible public utilities
limiting future development in the ski area, Mt. Baker has many weaknesses. Due to the fact that this resort
is located on a deadend highway, traffic from the East is nonexistent and is a huge negative in comparison
to its top 3 competitors that are built on highways that are accessible from both the West and East. Poorly
integrated marketing communications such as their website, social media, blog, and lack of event schedule
is a major weakness for Mt. Baker as well.
Likely future marketing strategies: As a result of their national attention for accumulating world record
snowfall, Mt. Baker plans on introducing lodging packages available to the public to better serve the large
amounts of visitors to the area each winter.
IMPACT OF THE COMPETITOR’S STRATEGY ON THE SUMMIT AT SNOQUALMIE
Because the Summit at Snoqualmie is in a market that is highly competitive, it’s important to understand
how the surrounding companies are interacting within the market, by doing so the Summit is able to see
ways in which they are able to improve our own business. After examining the industry as a whole, and
looking closely at the three largest competitors, it’s clear that each of the competing ski resorts has their
major selling points, which really differentiates them from one another. For example, Crystal Mountain has
really begun focusing on creating a luxury destination. By offering onsite lodging and additional amenities to
their riders, they have been able to create a true vacation destination. By creating a vacation destination,
they have the potential to become the goto mountain for the customers who are looking for more than a day
trip. Stevens Pass is an ideal location for those who enjoy being on the mountain year round, unlike
Snoqualmie, Stevens has a full range of summertime activities that are available to the public. Although
10. Snoqualmie offers a few activities during their off season, their primary focus is during their winter months.
Stevens also is known for having better quality snow, and their backcountry access as well. This is an offer
that is nearly impossible to imitate on Snoqualmie. Finally, Baker is becoming nationally recognized for
having world record snowfall, which is impossible to try to beat as well. Baker is also the host to
worldrenowned events such as Ski to Sea and the Legendary Banked Slalom. With all the attention and
exposure, Baker is quickly gaining popularity in the Pacific Northwest.
Type of Competitive Market: High / Mature
MOUNTAIN STATISTICS IN COMPETITIVE MARKET
TARGET MARKET
Who the existing and potential customer are: Primarily, instate skiers who frequent the mountain
multiple times per season and secondly, destination skiers who travel from out of the state to visit the resort
and stay in a nearby hotel.
Demographic & Socioeconomic: Between the ages of 2430, single, white male, $3050,000 annual
income, bachelor’s degree, with an entry level sales jobs at Elysian Brewing Company.
Psychographic: Has mode of transportation, democratic, outdoor interests, young professional, friends in
area with similar interests, weekends off, drinks beer regularly, dog owner, active skier, active mountain
biker, enjoys all outdoor activities, active on various forms of social media, GoPro enthusiast, 4wheel drive
vehicle, lives with a male roommate.
11. Geographic: Greater Seattle area, grew up skiing mostly at the Summit at Snoqualmie and occasionally at
Stevens Pass.
Behavioral Characteristics: Cares about the environment, price sensitive, brand loyal, and convenience is
important.
THE PURCHASE DECISION PROCESS
The first step in buying a lift ticket at a ski resort is figuring out what outcomes one wants from their
mountain experience. Each mountain offers different amenities, for example: skiin/skiout lodging at Crystal,
state of the art terrain parks at Snoqualmie and Stevens, backcountry tails at Stevens, etc. Each of the
resorts have websites which show live webcam footage at the base, snowfall measurements, ski reports and
weather conditions allowing skiers to review conditions and make educated decisions before they travel.
Another factor that will affect the decision process is the location of the mountain resort and the customer’s
willingness to drive. Mount Baker is a significantly further drive from Seattle than Snoqualmie or Stevens.
The price of each lift ticket is different for each mountain, and price plays a role in the decision making
process. Once the customer has done research of their options, they will compare and come to a conclusion
of the resort that best fits their needs and wants. After evaluating alternatives a consumer will purchase a lift
ticket for their desired mountain experience.
When a customer visits a mountain, they are buying the recreation experience of skiing on the mountain and
being outdoors with Mother Nature. Mountains and ski resorts are marketing the experience they have to
offer. Customers are also taking time to spend with friends and family while improving their skill level on the
slopes!
Customers expect a well maintained ski resort with extremely safe conditions including chair lifts, marked
trails and the support of the ski patrol staff. While the core product that ski resorts offer is a place to ski or
snowboard with lift access, resorts are expected to provide ancillary services such as dining options,
13. what ski resorts base their operations on, and have begun using snow making machines to compensate for
a lack of snow.
Technological: The two main ways that technology is improving ski resorts in the US are through electronic
ticketing and snowmaking systems. Electronic ticketing benefits the resort by creating a more efficient
experience for the customer as well as optimizes internal operations. Snowmaking machines are operated
via computer controls and can be fully automated to fit the distinct needs of each individual resort.
Firm Analysis
Seattle helped pave the way for skiing in the area. Before the resort was even built, skiing pioneers hiked up
the mountain, and held competitions on a jump built by the Seattle Ski Club. This caught the attention of the
public, and soon the sport began to grow. In 1933 the Seattle Parks Department received permits to
establish a ski hill on Snoqualmie Pass. Five years later, the first rope tow was installed in the ski area,
followed by gas station lights being installed in the early 40’s making Snoqualmie Summit the second resort
to offer night skiing in the USA. Thunderbird was Snoqualmie’s first chairlift, which was installed in 1954.
Two businessmen who thought the Summit was too steep established Alpental in 1967. They capitalized on
that thought and erected three chairlifts and a lodge that served the over the 500 acres of backcountry.
Formally owned by Holland America (Westours) the resort was purchased by Ski Lifts, Inc. in 1992. Then
ownership changed to Booth Creek Ski Holdings Inc, which is the fourth largest ski resort company in the
US. Currently, Boyne Resorts is the leaseholder fo.r Snoqualmie, who has since created a Summit Master
Development plan approved by the Forest Service. With this plan, the East Hidden Valley Summit was
opened in 2011 with allowed access to the backside of the mountain. Snoqualmie celebrated their 75th
anniversary in 2012. [1]
PRIMARY PRODUCT AND SERVICES
14. Summit at Snoqualmie is a full service ski resort offering over 20 chairlifts, food service at the base of the
mountain, pro shops with rental equipment and ski and snowboard lessons. First time skiers have the option
of learning from a wide variety of instructors who are trained to teach both individual and group lessons.
Snoqualmie is known for offering an array of terrain parks, and a variety of runs for every level of talent. In
addition to their ski and snowboard trails, Snoqualmie also offers a tubing park for those who are less
interested in purchasing a lift ticket for the ski hill.
CURRENT GOALS AND OBJECTIVES
Summit at Snoqualmie should make it their goal to continue to provide an allaround memorable experience
for their customers. With a large amount of competition in the area, Snoqualmie should continue to
differentiate their offering by providing services that are unique to their business. With the first signs of snow
already showing in early October, it is important that Snoqualmie has a strong marketing presence in order
to attract consumers to choose their product/service, instead of the alternatives. Marketing goals should
include advertising what is unique at Snoqualmie, like the tubing experience for nonskiers/snowboarders,
and night skiing/snowboarding. Doing this will help reinforce their claim of being a “Buffet for the outdoor
enthusiast.”
CURRENT & PAST STRATEGIES
Unlike some of their most important competitors, Summit at Snoqualmie began offering a fun and easy way
to enjoy the mountain without needing to commit any time or energy to learning how to ski or snowboard.
Tubing is the perfect alternative for people who are seeking adventure and excitement, but want to enjoy the
mountain in a more affordable, and less time intensive way. The tubing hill at Snoqualmie is comprised of 12
perfectly groomed lanes that are hand crafted and perfect for racing friends, family, or coworkers. Tubers
have the option of either walking up the side of the hill, or using the surface tow, which allows them to sit
15. back and relax as they are pulled back up the hill. Another strategy that helps Snoqualmie attract customers
is offering night skiing. Having the park open during the evening is a huge attraction for riders within our
target market. Customers busy work schedules would normally deter them from visiting the mountain during
the week, but by offering night skiing as an option, Snoqualmie has made it easier for riders to find the time
to enjoy the mountain. Although Summit at Snoqualmie doesn’t currently offer lodging at the base of the
mountain like Crystal, they do offer a StayandSki Free package with a local hotel. During the winter, “When
you book one of our lovely suites, you pay only $189.99 + tax and receive two free oneday adult lift tickets
to The Summit,” (Best Western).
CURRENT PERFORMANCE
The assumed market share of Ski resorts in Washington: Summit at Snoqualmie = 12% Mt.Baker = 10%
Crystal Mt. = 27% Stevens Pass = 21% Other= 30%. Summit, Mt Baker, Crystal and Stevens are assumed
to own 70% of the market, while the other 17 (small) resorts in the state account for only 30%. The Summit
at Snoqualmie has the potential to own up to 20% of the local market within the next 3 years, taking profits
from primarily Crystal and Stevens. Since Summit at Snoqualmie is a seasonal operation, profitability is
dependent on only 68 months of the year. By offering summer operations (see opportunities in SWOT)
Summit at Snoqualmie has the opportunity to increase profits from 50% up to 75%.
SWOT ANALYSIS
Strengths
Location near major city center
Low prices
State of the art terrain park
Weaknesses
Lack of lodging for their riders
Lack of summer operations
16. Opportunities
Onsite lodging
Expanding summer operations
(biking, weddings, corporate events)
Threats
Climate change
Customers disposable income
Strengths: After researching the main competitors in the greater Seattle area, we found that one of
Snoqualmie’s greatest strengths is their affordable prices especially their relatively cheap season passes
available to customers. An adult season pass is for Summit at Snoqualmie is only $549 dollars which is
extremely affordable when you begin to compare the price to other surrounding ski resorts whose prices
range anywhere from $790$1,099. In addition, Snoqualmie has been able to leverage their terrain parks as
a sustainable competitive advantage. Riders from all over the greater Seattle area have chosen to make
Snoqualmie their main mountain because of this unique offering. Another strength is the location of
Snoqualmie, in less than an hour; riders from the Seattle area can drive to the base of the mountain. This is
a huge advantage for the resort. Instead of their target market having to commit to a full day or even
weekend trip they could make go night skiing and still be at work in the morning.
Weaknesses: One of Snoqualmie’s biggest weaknesses is not offering lodging at the base of the mountain.
While lodging and overnight skiers may not be their primary focus or intended target audience, it is still
closing the door to many potential customers and a steady source of revenue. By offering on site lodging
and amenities for overnight guests, Snoqualmie could begin to attract a new group of customers. Another
weakness is not offering a full range of activities for guests during the summer. Unlike their competitors who
offer an array of hiking and mountain biking trails that are open to the public, Snoqualmie fails to keep
guests coming all year long and is in fact closed for the summer months.
Opportunities: There are several areas of opportunities for Snoqualmie to take and grow into. One of the
major opportunities it can pursue is overnight lodging. By adding lodging on the mountain, Snoqualmie will
be a more attractive destination for out of area visitors. The Summit can also take advantage of summer
18. focusing a majority of their efforts on one particular element. For example, Crystal Mountain has focused a
majority of their efforts on becoming known as the perfect weekend getaway, rather than a ski resort whose
primary focus is accommodating those who are day trip skiers. Within the past 10 years, Summit at
Snoqualmie has been trying to brand themselves as the premier destination for young mountain enthusiasts
who are passionate about riding in terrain parks and doing tricks. Snoqualmie offers four different terrain
parks for riders, each individual park requiring a varying level of skill and experience. “Central Park is our
flagship park featuring over 30 acres of terrain open seven days and six nights a week. It also holds the
state's largest jib fleet and is home to some amazing events including Jib This! – Jib That!, Red Bull's Third
Shift, and Squirrel's Skate Jam.” (SummitAtSnoqualmie). Riders from all over Western Washington consider
Snoqualmie to be the premier terrain park destination. In recent years, Snoqualmie has been able to gain
more and more recognition due to these events. While other mountains in the area also offer terrain parks
for their riders, none of them have been able to match the versatility and size of the Snoqualmie parks.
Snoqualmie has been able to gain an extremely high amount of attention from the younger generation of
skiers and snowboarders who have grown up on the mountain and tend to spend a lot of their riding time in
terrain parks.
Core Competencies
Although it’s difficult to distinguish core competencies in the ski resort industry, one inimitable competency is
the geographic location of the mountain. Snoqualmie is the quickest drive to a mountain for our target
audiences, and have therefore, have experienced a high degree of success.
COMPETITIVE ADVANTAGES
Cost Advantages: Summit at Snoqualmie is owned by Boyne Resorts USA, which is a publicly traded
entity. This gives Summit at Snoqualmie a cost advantage over its competitors in that the majority of ski
19. resorts in Washington are privately owned. Being a publicly held ski resort has is an advantage because of
the financial backing, expertise of the board of directors, and strategic goals influenced by increasing the
wealth of the stockholders.
Cost differentiation is not a key driver for any of the firms. While most ski resorts lease their facilities from
the state or National Parks Association, Summit at Snoqualmie owns its ski area, giving them a slight
advantage. However, it’s noted that this advantage is not significant or sustainable.
Differentiation Advantages: A large differentiating factor for Snoqualmie is its utilization of the backside of
the mountain. There are four base areas with twelve lifts around the entire mountain. Snoqualmie is set up
to take advantage of all sides of the mountain, which is a sustainable advantage over our competitors who
are limited due to their locations. Dangerous terrain and the inability to expand public utilities, like piping and
electricity, limit our competitors from copying Snoqualmie. Currently, night skiing is another differentiation
advantage for Snoqualmie. While it could be stated that other resorts could offer night skiing as well, it
seems to be sustainable for the near future because they are the only resort that offers the service when
compared to our competitors, and our competitors have no plans to offer night skiing in the near future. By
offering night skiing at the resort, Snoqualmie has been able to capture the attention of our target audience.
Another sustainable advantage is their distance from Seattle, where a lot of our target market will be coming
from. Because there is no way to move closer to Seattle, distance will be a major sustainable advantage to
Snoqualmie when compared to its competitors.
Another sustainable advantage that Snoqualmie offers is their impressive terrain parks. The ski resort has
spent the previous ten years creating four terrain parks for their riders, each park offering a variety of
different jumps for variety of different skill levels. Riders from all over Western Washington have selected
Snoqualmie as their primary ski destination because of their premier terrain parks. In recent years,
Snoqualmie has been able to gain significantly more recognition due to a number of ski and snowboard
events they have hosted in of the previous years. Other resorts in the greater Seattle area offer terrain parks
21. Backcountry 8
Night Skiing 7
Terrain Parks 7
Snowfall Amount 9
Trails 7
Varying Difficulty of Slopes 6
Lessons 4
Lodging 2
SNOQUALMIE PASS AND STEVENS PASS COMPARISON
Factors Snoqualmie Stevens
Access and Size of Backcountry 7 9
Night Skiing Opportunities 6 7
Terrain Parks 9 10
Snowfall Amount 6 7
Trails 8 7
Varying Difficulty of Slopes 8 8
22. Lessons 8 8
Lodging 0 0
Total 38 56
Firm Perspectives:
Summit at Snoqualmie Key Features
● 45 minutes from Seattle
● 523 acres of back bowls and backcountry
● 541 acres of lit terrain for night skiing
● 2 terrain parks
● 4 base lodges with free shuttle service between them
Stevens Pass Key Features
● 1,125 acres of skiable terrain
● Largest night skiing area in Washington 6 lifts
● Mountain biking in the summer
● Largest Nordic Center in the Northwest for snowshoeing and cross country skiing
Three Circles Analysis
25. “For the family of skiers, Summit at Snoqualmie is the ideal location for family fun that offers an
extensive variety of activities for all ages of outdoor enthusiasts because it is under an hour’s
drive from Seattle and there is something to do for everyone.”
This segment consists of younger uppermiddle class families living in the greater
Seattle area, with two or more children. Both parents work full time, and the children are
involved in variety of different extracurricular activities, which can make it difficult to organize
trips to the mountain as often as they would like. Their benefits sought are things like, “spending
quality time with the family” and “getting out of the city for a weekend.”
Currently, Snoqualmie offers a variety of standout features that really cater to this
specific segment. Most importantly, Snoqualmie offers an extensive Kids Club. The Kids Club
offers lessons and activities for all ages of children, and because of Snoqualmie’s diverse set of
runs, there are numerous runs for everyone in the family. Another important feature that
Snoqualmie offers for the Family segment is a state of the art inner tubing course. Tubing is the
perfect alternative for family members who are seeking adventure and excitement, but want to
enjoy the mountain in a more affordable and less time intensive way. If this segment was
chosen, Snoqualmie would need to narrow down their marketing efforts and begin focusing on
the features that will add value for these skiers. It would be important to overemphasize the
familyfun atmosphere and provide compelling evidence as to why Summit at Snoqualmie is the
ideal staycation spot for any family who is looking to get away for a weekend.
THE HOBBY SKIERS
Originally, the market was divided into three identifiable segments: families, college
students, and young professionals. It was quickly discovered however, that targeting young
27. TARGETING
After looking at the strengths and weaknesses, and examining both segments closely, Summit
has decided that targeting the hobby skier segment will increase revenue. Because of the
unique product offering, Summit see the opportunity to build lifelong relationships with these
consumers and therefore have an opportunity to increase customer value. By choosing to target
the hobby skiers, Summit has more opportunities to capitalize on repeat visits and become a
home away from home, enabling Summit to build a strong sense of community for these skiers.
In order to successfully reach the target audience, Summit knew there was a need to find a way
to appeal to their core benefits sought. Because these skiers have less responsibility than the
young family segment, they have the ability to visit the mountain more frequently, which gives
Summit a great opportunity to better understand the segment.
POSITIONING STRATEGY
“To the hobby skiers, Summit at Snoqualmie is the year round adventure playground that
offers a unique sense of community because of their state of the art terrain parks, base hostel
and expansive back country all within an hour’s drive from Seattle.”
First and foremost, the positioning strategy will be focused on creating a strong sense of
community for the younger generation of skiers and snowboarders, allowing Summit to build
lifelong relationships and increase overall brand loyalty. In the past, Snoqualmie has been able
to leverage terrain parks as a sustainable competitive advantage. Hobby Skiers from all over the
greater Seattle area have chosen to make Snoqualmie their main mountain destination because
of this unique offering. Because Summit is the only resort in Washington that offers an
expansive terrain park the environment is unmatched by any competitors. The terrain park plays
a crucial role in success of the future positioning strategy and the foundation Summit will build
29. Since the individuals in the target market were primarily born in the 80’s and 90’s, they
are considered digital natives and spend a great deal of their time online. For this reason,
Summit will focus on communicating through digital media. Summit plans to create content that
evokes emotions of wanderlust, adventure, and community then share it via th owned social
media channels such as Facebook, Twitter, and Instagram. Currently, the Summit at
Snoqualmie’s Instagram account has over 3,200 followers who can be reached easily and
inexpensively.
The Summit at Snoqualmie has the potential to become Washington State’s premier
yearround playground. After a few additions and upgrades, the resorts’ operation schedule is
estimated to increase twofold, drive profitability per customer, and strengthen overall brand
loyalty. Summit at Snoqualmie can truly become the best in the Northwest. Instead of closing
during the spring and summer months, Summerside activities will be a highly profitable way of
giving Snoqualmie’s core winter customers activities to do year around including, lift access
mountain biking, hiking, and disc golf. The resort would further benefit by improving its
restaurant and bar offerings, as well as becoming the ideal location for summer weddings and
corporate retreats. These new activities will synergistically work together to reinforce the sense
of community that Snoqualmie is looking to build. Many of its loyal winter customers are also
dedicated to summer activities and will be the perfect target audience for introducing mountain
biking and hiking.
Summit at Snoqualmie will then further differentiate themselves by opening a Hostel at
the base of the mountain. This type of lodging will offer an inexpensive and social way to extend
the Summit at Snoqualmie experience. Summit believes this will increase revenues as guests
will pay to additionally to stay the night, eat, drink and ski or snowboard on the mountain again
in the morning. Since most customers are season pass holders and spend most of their money
30. upfront, at the beginning of the ski season, the hostel and additional activities offered will
dramatically increase cash flow throughout the year. Staying true to its slogan, ‘Just around the
corner, a million miles away’, onsite lodging would take Snoqualmie’s product offering one step
further into the hospitality industry.
COST OF ACTIVITIES
Summit plans to acquire an old motel and renovate it into the hostel. Summit is allocating
$3,750,000 for the purchase of the motel and another $1,300,000 for the renovations. The
building of the mountain bike trail will cost and additional $50,000 and will only run one lift during
that time. Marketing expenses will be approximately 10% of the annual budget at 1.5 million
dollars. The marketing expenses will include reaching the entirety of Washington state,
highlighting our new yeararound activities, lodge, bar and wedding venue. In total, Summit
intends to allocate $6,600,000 for the entire launch.
EVALUATION AND CONTROL
The main measures of success will mainly come from the change in revenue. Consumers now
have many options to customize how they want their experience at Summit to be. Whether they
are buying a season lift ticket, a weekend getaway package at the hostel or even a year round
pass, Summit will measure the patterns that consumers choose to take and make adjustments
accordingly. Summit will be able to collect information on how many customers chose to
upgrade to a year round pass, as well as utilize the hostel for weekend getaways. The hostel
will be another point at which to measure success. Summit will send email surveys to those who
stayed in the hostel, asking them how their experience was. This is Summit’s chance to see
how much customers liked the offering or where the areas in which there is room for
improvement.
32.
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