Week 2- Camelbak

Written Assignment: Camel Back Foundations of Marketing: BA181 Instructor: Stacey Smeltzer Grantham University William Hornung Student ID#: G00079415 January 1, 2012 Camel Back -They’ve Got Your ’Bak. – Case Study Analysis The case study is to understand the importance of the CamelBak. CamelBak Products, LLC is an outdoors equipment company known primarily for its hydration products, such as hydration packs and water bottles. CamelBak is also a supplier of hydration packs, protective gear, and other products to the U. S. military and law enforcement agencies around the world. The CamelBak headquarters are in Petaluma, California. CamelBak is the leading manufacturer of hydration packs. The CamelBak name comes from a play on the myth that a camel stores water in its hump. Camels actually store fat in their hump. CamelBak Given Facts in the case: 1. In 1989, Michael Eidson, has invented CamelBak for overcoming dehydration. 2. The first version, which used medical tubing to flow water from an intravenous drip bag that was insulated by a sock and strapped to the back of his shirt, was born as most inventions are—out of necessity. . The packs gained fame during the 1991 Gulf War as extreme sports enthusiasts in the U. S. Special Forces carried their personal CamelBaks into combat during Desert Storm. 4. By 1995, Edison sold the company for $4 million. Kransco has purchased it. 5. In 1999, two years after buying his first CamelBak pack, cyclist Chuck Hunter left Lockheed Martin to join the upstart company in hopes of growing its military business. 6. Hun ter partnered with DuPont to help CamelBak develop the Low Infrared Reflective (LIRR) system. 7. Other CamelBak innovations include the Water Beast reservoir, a fluid storage system that boasts 30 percent more rigidity than other packs on the market. 8. Another CamelBak first is its CBR 4. 0 pack system, which is specially designed to perform under chemical or biological weapons attack. 9. The product manager Shawn Cullen likens CamelBak to Kleenex: â€Å"Everyone calls a hydration system a CamelBak,† he says. 10. U. S. Army is working with a former supplier to develop its own version, most likely in an attempt to reduce costs. Questions: 1. Discuss how business relationships and strategic partnerships have helped to increase the value of Camelback’s products and the business itself. Answer: Camelback is first invented by Michael Edison in 1989, for solving the problem of dehydration. 1. CamelBak is purchased by Kransco. 2. Chunk Hunter has partnered with CamelBak after he left Lockheed Martin, because of growing military business. 3. Hunter partnered with DuPont to help CamelBak develop the Low Infrared Reflective (LIRR) system. 2. What type(s) of business market customers does CamelBak sell to? Answer: The following are the different segment of customers using the CamelBak products. 1. The military is big customer 2. Sports people. 3. Outdoor enthusiasts 4. Law enforcement personnel 5. U. S Special Forces 6. U. S Secret Service 7. Department of Health and Human Sciences 8. Government agencies from around the world 9. HAZMAT 10. New York Police Department 11. Extreme sports, Hunting, Recreational personnel 12. Industrial and Professionals The following is the list of Camelback Products: 1. Camelback packs 2. Low Infrared Reflective (LIRR) system. 3. CBR 4. 0 pack system 4. Water Beast packs At prices up to $200 for combat-ready systems, one thing CamelBaks aren’t is cheap. But then again, neither is CamelBak itself. Its strong product lines, history of innovation, secure strategic relationships, and dominance in government and institutional markets drove its value to over $200 million when investment bank Bear Stearns Company bought the outfit from Kransco in 2003—not bad for a product that started life as an intravenous fluid bag wrapped in a sock. 3. Review the types of demand that most influence business markets. Which ones do you think are most important for Camelback to consider in their marketing strategy? Why? Answer: The types of demand that influence business market are. 1. Bulk Orders 2. Potential Market 3. Payment System 4. Inelastic demand 5. Price inelasticity of demand. The things most important for Camelback to consider in their market strategy are. 1. There must be selective media channels. 2. Less advertisement 3. The price to be reduced by using modern technology of production. 4. The biggest client i. e. military is in the impression that the product is charged high. 5. There is lot of demand for the product in the international market. 6. The marketing should concentrate on awareness of product in untouched market. 4. What type of business product is a Camelback backpack? Answer: Camelback is an essential product for its customers. It is need for its customers. The price such product influences the consumption process of the customer. The product can be compared to a pharmaceutical drug which solves the problems of patients. There is lot of market growth for Camelback. Conclusion: From the above case study it is understood that business products have few major customers (here military to Camelback), but these customers are price sensitive and it is also threat and opportunity. The organizations that are in marketing of business products should be careful in dealing with the customers with a strategic marketing plan. One of CamelBaks biggest investors is the US military. As a soldier without the CamelBak soldiers would still be using canteens as a hydration system. Clearly this is a good marketing strategy for them to use in this particular arena and to focus on them as a whole in this one area. References Camelback. (n. d. ). From Wikipedia, the free encyclopedia. Retrieved January 1, 2012, from http://en. wikipedia. org/wiki/Camelback History of the CamelBak. (2010, October 17). High on Mountain Biking. Retrieved January 1, 2012, from http://highonmountainbiking. com/blog-mtb/history-of-the-camelbak/ Quackenbush, J. (2011, August 25). CamelBak acquired for $257 million. Business Journal. Retrieved January 1, 2011, from http://www. northbaybusinessjournal. com/39102/camelbak-acquired-for-257-million/