Hunley’s biggest challenge

Hunley’s changing external environment, with competitor’s higher and lower-priced offerings and products,
has seen the company face the challenge of reinventing and re-establishing their original successful brand
image of the industry’s best in high quality and performance, originally differentiated by using the
breakthrough material and skilled craftsmanship. Their unreactive marketing strategy and in addressing the
concerns of their market, has seen Hunley’s fly-rod revenues decline and remain stagnant in 2017, despite
rises by 10% in 2016 (Exhibit 1). Hunley’s also has a challenge in choosing between two marketing
approaches in improving sales and establishing a value proposition. Hunley must therefore reposition and
create an effective marketing strategy that differentiates itself from their competitors in order to maintain
their competitive advantage, boost sales and addresses the concerns of the changing external environment
and motivations of their target market.

Operational marketing environment and impact on decison making

In order to increase sales and enhance their market position, Hunley has current and future marketing
strategies were influenced by the marketing environment they operate in.

Immediate environment

Hunley has numerous competitors in the American Market including Sage, Thomas & Thomas where its
position in the market has fallen from a once high-end pioneer to products now considered mid-tier and in
maturity, resulting in stagnant sales. Hunley provides customers with stable, quality products and matches
its core competencies that satisfies market needs, but should continue to analyse the environment and
trends in order to create an innovative image. It is highly important for Hunley to enhance their market
positioning and monitor the actions and strategies of their competitors.

Macroeconomic environment

The economic impact of fly-fishing in America is valued at $115 billion [1], with over 47 million U.S residents
participating in some form of fishing annually. The demographic involved in the activity of fly-fishing is
generally made up of baby boomers and Generation X, the majority have had a college education (65%)
and aged 25 to 45 years and older [Exhibit B]. This impacts the marketing strategy, as they consider the
incomes and perceived likelihood of purchase from their main target market and users. Technological
advances with the increasing popularity of digital marketing, creates strain on the marketing budget as
management reassess the appropriate strategy in order to increase reach and create brand association.
Social trends of increasing female empowerment [3] and sustainability, enhances the need to analyse
these trends and target new markets. The increasing female involvement in fly-fishing with 42% of first-time
fishing participants being female [2], creates opportunities for product line extension that tailors to women.

Exhibit B shows the age distribution of fly-fishing participants in 2016

Brand positioning and the value proposition of Hunley

The brand image of Hunley is dependent upon their actual product and its associated services. Their
current brand positioning has fallen from its original establishment of what was once a pioneer and was
recognised as industry best. The quality level of their products have now been adopted by competitors, who
have further reverse engineered or specialised in certain aspects of the niche market. In order to continue
upholding and re-establishing themselves as a market leader, the introduction of the ‘Grand Bassara’ as
part of the Titaluk River - an increase in product mix; the innovation should be marketed to showcase the
unique packaging, features and its warranty in order to enhance the prestige and perception of the
speciality product for avid and competitive users that make up most of their sales [Exhibit 3]. This would
ensure that their value proposition is clear to their target market as they create value as a consistent, high-
end brand that would then facilitate purchases and establish customer loyalty. Continued strong
partnerships with retailers, and premium pricing of the new product along with increase in digital promotion,
would allow an enhanced perception of the brand and increase awareness. Promoting on media such as
Wall Street Journal and enhancing social media presence in order to increase engagement and visibility to
female markets would further allow Hunley to position their brand in a competitive market. However, after
exclusivity of the graphite ends, and as competitors adapt, there would be a decrease in sales if brand
loyalty hasn’t been effective established and competitor offerings are seemingly more attractive. Overall,
the consistent value proposition would create brand equity and Hunley must implement branding strategies
and the consistent emphasis on their core values and vision in order to ensure a value proposition that is
on par or better than their competitors. This should be done with the new product line, after further market
research, testing and feedback, before evaluating the effectiveness of such strategy.
Considerations in supporting the marketing-growth relationship

Marketing research must be conducted in order to find and take advantage of opportunities that can help
perpetuate growth. Defining objectives and designing research needs, as well as collecting data primarily
and secondarily, would allow Hunley to analyse trends and understand their consumers so that marketing
activities can further enhance their value. Collections of external secondary data helps determine the size
of the market and potential markets, however, may not be specific enough If the data was acquired for
some other purpose. Syndicated external data and Internal primary data should be considered in regards to
targeting specific markets with their products, with social media insights, focus group interviews and survey
research to outline the value proposition of Hunley and their strategies. Interviewing customers about the
way a new brand line would impact their image of Hunley or their opinions on a cheaper-priced range would
prove valuable in helping determine the most effective strategy. Exhibit 3 showcases the Marketing Survey
undertaken by Hunley in order to get a better understanding of their target market and sales, which would
allow them to develop strategies around their brand and products so that it would prove most effective in
attracting and retaining customers. Experimental research can also be considered, however, can result in
losses or disengagement with the brand due to inconsistencies. However, experimental data can be
addressed and analysed to find the most effective price point for different markets and can be effective if
limited market research was conducted. With the implementation of a digital marketing plan, Hunley can
also take advantage of new unique consumer insights and can engage, or tailor product offerings through
cookies, enhancing satisfaction and loyalty. Analysing and evaluating market research is essential in
ensuring marketing activities are carried out effectively, correctly targeting the potential market,
understanding consumer behaviour and enhancing the marketing-growth relationship.

Pricing strategies in the creation, delivery and capture of value

Pricing plays a critical role in profitability and establishes the perception and value of a brand and product.
It is critical in the case of Hunley, their rods are priced between $200-$800 which mainly targets the avid
and competitive users of the target market. A focus on introducing a new premium product line can
enhance the company’s positioning and value proposition, but there would be a loss with the delay of low-
cost options which would’ve generated increased sales, shown through the demand curve where more is
demanded at lower prices. It is inherent that Hunley’s pricing objectives came from examining its
objectives, of being profit and customer orientated. Customer demand and the income effect on the price
elasticity of demand, would ultimately rely on economic and income factors, which would affect sales. This
would be a concern during times of recessions but ultimately fly-fishing is recreational and those avid and
professional users that are willing to invest for a durable long-term product, would still pay a premium price.
The costs of manufacture and changing variable costs also influences the value of the end product.
Determining the break-even point and using a markup and target return pricing strategy would result in
determined profits and return on R&D. The competition also influences pricing for Hunley, as competitors
may seek to undercut or use price penetration strategies to increase their market share initially. Channel
members such as the retailers including fly shops, Orvis and Cabela’s, must work in mutual agreement
regarding pricing for profits and perception. Other concerns, such as the ease of internet access and
comparison proves concern for showrooming, therefore Hunley must ultimately market the benefits of their
product and brand image to retain customers and increase sales. Value-based and status quo pricing can
also be examined in Hunley’s pricing strategy where the pricing is consistent with many of their
competitors. The introduction of new product line, allows them to match their top competitors and examine
the price-quality interaction. From this, consumer’s can perceive the new product as higher quality, as well
as commanding higher margins whilst retailers focuses on selling the product. This creates value for the
firm and in regards to the product image. Through analysing pricing concerns and strategies, the creation,
delivery and capture of Hunley’s value can be seen and retained.
Bibliography

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https://asafishing.org/facts-figures/sportfishing-economics/

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https://news.takemefishing.org/Special-Report-on-Fishing

[3] John Clarke., (Dec 10, 2017) ‘Fly Fishing Targets Women as a Source for Growth’, Accessed 27 April
2019

https://www.nytimes.com/2017/12/10/sports/fly-fishing-women.html

Everett Potter., (May 9, 2011) ‘Orvis: How to reinvent a 160 year old fly fishing company’, Accessed 27th
April 2019

https://www.forbes.com/sites/everettpotter/2017/05/09/orvis-how-to-reinvent-a-160-year-old-fly-fishing-
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