Cabela's 2008 Annual Report Download - page 13

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8
Our marketing strategy focuses on using our multi-channel model to build the strength and recognition of
our brand by communicating our wide and distinctive offering of quality products to our customers, and potential
customers, in a cost effective manner. Our largest marketing effort consists of distributing over 133 million catalogs
annually in order to attract customers to our Retail and Direct businesses. We have also established our website to
market our products to customers and potential customers who shop via the Internet. We use both our catalogs and
our website to cross-market at our retail stores. Our marketing strategy is designed to convey our outdoor lifestyle
image, enhance our brand, and emphasize our position in our target markets.
In addition to the use of our catalogs and our website, we use a combination of promotional events, traditional
advertising, and media programs as marketing tools. We engage in certain promotional activities as well as sponsor
sportsmen and women advocacy groups and wildlife conservation organizations, including U.S. Sportsmen’s
Alliance, National Rifle Association, National Wild Turkey Federation, Women in the Outdoors, Rocky Mountain
Elk Foundation, Whitetails Unlimited, Pheasants Forever, Ducks Unlimited, Delta Waterfowl, Trout Unlimited, and
Safari Club International, as well as regional and local events and organizations. We also provide sponsorship of
fishing tournaments and other related activities.
In addition, we have historically received extensive free publicity from the unique Cabela’s shopping experience
when we open a store. As we enter more metropolitan markets, where the opening of a Cabela’s store may not be major
news, we will need to supplement this free publicity with additional advertising to increase consumer awareness of
new store openings.
Competition
We compete in a number of large, highly fragmented, and intensely competitive markets, including the outdoor
recreation, and casual apparel and footwear markets. The outdoor recreation market is comprised of several categories
including hunting, fishing, camping, and wildlife watching, and we believe it crosses over a wide range of geographic
and demographic segments.
We compete directly or indirectly with other broad-line merchants, large-format sporting goods stores and
chains, mass merchandisers, warehouse clubs, discount and department stores, small specialty retailers, and catalog
and Internet-based retailers.
We believe that we compete effectively with our competitors on the basis of our wide and distinctive merchandise
selection, and the superior customer service associated with the Cabela’s brand, as well as our commitment to
understanding and providing merchandise that is relevant to our targeted customer base. We cater to the outdoor
enthusiast and the casual customer, and believe we have an appealing store environment. We also believe that our
multi-channel model enhances our ability to compete by allowing our customers to choose the most convenient sales
channel. This model also allows us to reach a broader audience in existing and new markets and to continue to build
on our nationally recognized Cabela’s brand.
Customer Service
Since our founding in 1961, we have been deeply committed to serving our customers by selling high-quality
products through sales associates who deliver excellent customer service and in-depth product knowledge. We strive
to provide superior customer service at the time of sale and after the sale through our 100-percent money-back
guarantee. Our customers can always access well-trained, knowledgeable associates to answer their product use
and merchandise selection questions. In 2008, we completed the implementation of customer service enhancements
directed, in part, at increasing customer satisfaction. These enhancements continue our efforts to offer customers
integrated opportunities to access and use our retail store, catalog, and Internet channels. For example, our in-store
pick-up program allows customers to order products through our catalogs and Internet site and have them delivered
to the retail store of their choice without incurring shipping costs, increasing foot traffic in our stores. Conversely,
our expanding retail stores introduce customers to our Internet and catalog channels. We believe that our ability to
establish and maintain long-term relationships with our customers and encourage repeat visits and purchases is due,
in part, to the strength of our customer support and service operations.