Cabela's 2012 Annual Report Download - page 18

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Hunting Equipment. The hunting equipment merchandise category includes a wide variety of firearms,
ammunition, optics, archery products, and related accessories and supplies. We provide equipment, accessories,
and consumable supplies for almost every type of hunting and sport shooting. Our hunting equipment products are
supported by in-house services such as gun bore sighting, scope mounting, and bow tuning to serve the complete
needs of our customers.
General Outdoors. The general outdoors merchandise category includes a full range of equipment and
accessories supporting all outdoor activities, including all types of fishing and tackle products, boats and marine
equipment, camping gear and equipment, food preparation and outdoor cooking products, all-terrain vehicles and
accessories for automobiles and all-terrain vehicles, and gifts and home furnishings. We provide products for fresh
water fishing, fly-fishing, salt water fishing, and ice-fishing. In addition, we feature a wide selection of electronics,
boats and accessories, canoes, kayaks, and other flotation accessories. We provide a diverse selection of camping
gear and equipment for various experience levels of outdoor enthusiasts and offer a full range of equipment and
accessories supporting other outdoor activities, including food preparation, outdoor cooking, travel, and outdoor
living. Our gifts merchandise includes games, food assortments, books, jewelry, and art with outdoor themes.
Home furnishings merchandise includes furnishings and accents with outdoor themes for the home and cabin.
Clothing and Footwear. The clothing and footwear merchandise category includes fieldwear apparel and
footwear, sportswear apparel and footwear including technical gear for the active outdoor enthusiast, apparel and
footwear for the casual customer, and workwear products.
Cabela’s Branded Products. In addition to national brands, we offer our exclusive Cabela’s branded
merchandise. We have a significant penetration of Cabela’s branded merchandise in casual apparel and footwear as
well as in selected hard goods categories such as camping, fishing, and optics. Where possible, we seek to protect
our Cabela’s branded products by applying for trademark or patent protection for these products. Our Cabela’s
branded products typically generate higher gross profit margins compared to our other branded products. In 2012,
our Cabela’s branded merchandise accounted for approximately 30% of our merchandise revenue. By having an
appropriate mix of Cabela’s branded and other branded merchandise, we strive to meet the expectations and needs
of our customers and expand the recognition of the Cabela’s brand.
Marketing
We seek to increase the amount each customer spends on our merchandise through enhanced customer
targeting, expanded use of digital marketing channels in mobile marketing and social networking and other
technology-based approaches, continued introduction of new catalog titles, and the development and marketing of
new products. We have taken advantage of web-based technologies such as targeted promotional e-mails, on-line
shopping engines, and Internet affiliate programs to renew efforts in local markets and to increase sales. We also
have improved our customer relationship management system, which we expect will allow us to better manage our
customer relationships and more effectively tailor our marketing programs. We will continue to use our expanding
Retail business to capture additional customer purchase history and information.
Our digital transformation continues with efforts around enhancing our Internet website to support the
Direct business. Cabelas.com continues to be the most visited website in the sporting goods industry according
to Hitwise, Inc., an online measurement company. The amount of traffic now coming through mobile devices
is growing significantly. As a result, we continue to utilize best-in-class technology to improve our customers’
digital shopping experience and build on the advances we have made to capitalize on the variety of ways customers
are shopping Cabela’s today. We have seen early successes in our social marketing initiatives and now have over
2.2 million fans on Facebook. Our omni-channel marketing efforts are resulting in increased customer engagement
across multiple channels and a more consistent experience across all channels.
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 by sponsoring
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