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The Morrow Equation: A talk with Greg Hughes By Sean O'Brien February 28, 2000
With the Industrys attention on the pending Ride/K2 deal, it would be easy to forget that K2 is still in the process of integrating Morrow into the operation.
We tracked down Morrows Sales Manager Greg Hughes and asked him about Rob Morrow rejoining the Morrow team, how the transition is going, and whether he feels forgotten in the wake of the Ride deal.
So, Rob Morrow has decided to continue on with the Morrow Snowboards brand. What will his role be? Hell be one of our main spokepeople and an important consultant when were designing the board lineand with all our snowboard products for that matter. Hell be out there visiting shops and riding. Were actually giving him a photo incentive. He still rides a bunchproabaly more than ever now that hes up in Whistler.
What attributes will his involvement maintain in the Morrow brand, and what will he also give K2 that wasnt there before? Its important for people in the industry and especially the retailers to know that Rob is still a part of it. He was the founder of Morrow and his philosophy is an important part of the brand and its direction. Hey, its his name on all the boards. Its importnat to the industryespecially at this stage of the gameto see that a visionary like him in involved with the brand. Plus, Rob is a fun guyhell certainly help me enjoy my job a lot more.
What he brings to K2 is the clear sign that sure, they bought the brand, but theyve also taken a big step to keep the people who made the brand involved with its future direction.
Are you worried that the Ride deal has stolen your thunder? Its a bit of a worry, but more from an external point of view than in-house. People have moved on [from talking about the Morrow deal] to talking about Ride, and in some ways we really didnt have an opportunity to get out into the shops and talk about what were planning to do. But on an internal level, I certainly dont feel as if we arent getting what we need because of Ride. I havent noticed any difference. Were just busy getting stuff out to the stores.
Whats the biggest change in your day-to-day management of the brand? In many ways, I feel like a guardian of the Morrow brand. [K2 Product Manager] Sanders Nye is busy doing products. We have a few new people working on the Morrow brand, but they really dont have the same historical perspective about Morrow as I do. But its mostly an internal deal.
Have things gotten easier or harder for you? Right now, its a little bit harder, just because I feel we need to address the rumors floating around out there. Weve sent a letter out to retailers outlining how our distribution strategy will remain the same, and Im also busy on the phone talking to retailers.
So what can you say to stop all the distribution rumors? Really, only time will tell, but I think they wont stop until the retailers see our stuff in specialty stores and not in chains [stores] and not at Sams Club.
How has K2s acquisition of Morrow changed your marketing budget? Its probably gotten a little bit bigger. Its nice to be able do things that we wanted to, but couldnt for financial reasons. We also dont have any lingering issues that we were tied to, so in many ways, its a nice fresh start.
So, how will K2 be able to manage so many different brands? Its possible because the products are different. I try to point to the business models found in other industries. For example, Ford owns Volvo but that doesnt affect who each company designs, manufactures, or markets their cars. These are two different products with different consumers. Its pretty unlikely consumers would decide not to buy a Volvo so they could buy a Taurus.
Plus, it think all this blows over most consumers heads. For the most part, they dont pay attention to who owns the business, as long as the product is good and is found in the right places.
What changes to the line have been made as result of the purchase? The Morrow focus has become more specialized. We decreased the number of our board families to about six, because the market isnt as wide as it was. We dont need a freeriding Alpine board. Freestyle will be our focus.
Morrow was a declining brand before the K2 acquisition. What are you doing differently now to counteract that? Even though we were declining overall, there were some categories in which we were declining more than others. So, the first step was to get rid of all those categories that were declining the most.
What are some important dates we should keep our eyes on? I think the first date will be when everyone ships into the stores, and they see all the brands where theyve always been and with no surprises.
Then, of course, the second big date will be the SIA Vegas show. Thats when people will see three brands under one umbrella, but three brands that look different and have different messages. Thats going to be the real test.
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