Sports Equipment Marketing Plan by PaloAltoSoftware

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This marketing plan is for The Boulder Stop, a rock-climbing gear and espresso emporium, who sells specialized gear while providing a place for snacks, beverages, and talk.

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                                Table Of Contents


1.0   Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0   Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
         2.1    Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
                    2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . 3
                    2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . 3
                    2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . 4
                    2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 4
         2.2    SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
                    2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 6
                    2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 6
                    2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . 7
                    2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
         2.3    Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
         2.4    Product Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
         2.5    Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
         2.6    Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
         2.7    Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
         2.8    Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.0   Marketing Strategy . . . . . . . .            .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 11
        3.1    Mission . . . . . . . . . .           .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 11
        3.2    Marketing Objectives . . . .         .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .     . 11
        3.3    Financial Objectives . . . .         .    .    .    .    .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    . 12
        3.4    Target Markets . . . . . .            .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 12
        3.5    Positioning . . . . . . . .           .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 12
        3.6    Strategies . . . . . . . . .         .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    .    .    .    .    . 12
        3.7    Marketing Mix . . . . . . .          .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    .    .    .    .    . 13
                   3.7.1 Product Marketing          .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 13
                   3.7.2 Price . . . . . .          .    .    .    .     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 14
                   3.7.3 Promotion . . . .          .    .    .    .    .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    . 14
                   3.7.4 Service . . . . .          .    .    .    .    .    .     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 14
        3.8    Marketing Research . . . .           .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 14

4.0   Financials . . . . . . . . . . . . . . . . . . . . . . .                                        . . .          .    .    .    .    .    .    .    .    . 15
         4.1    Break-even Analysis . . . . . . . . . . . . . .                                       . . .          .    .    .    .    .    .    .     .    . 16
         4.2    Sales Forecast . . . . . . . . . . . . . . . . .                                      . . .          .    .    .    .     .    .    .    .    . 17
                   4.2.1 Sales Breakdown - Mail and Web Direct                                        Sales           .    .    .    .    .    .    .    .    . 19
                   4.2.2 Sales Breakdown - Retail Store Sales .                                       . . .          .    .    .    .    .    .    .     .    . 19
         4.3    Expense Forecast . . . . . . . . . . . . . . .                                        . . .          .    .    .    .    .    .    .     .    . 20
         4.4    Contribution Margins . . . . . . . . . . . . . .                                      . . .          .    .     .    .    .    .    .    .    . 21

5.0   Controls    . . . . . . . . . . . .   .   .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 22
         5.1     Implementation . . . .     .   .   .    .    .    .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    .    . 22
         5.2     Marketing Organization     .   .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 23
         5.3     Contingency Planning .     .   .   .    .    .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    .    .    . 24
                                         The Boulder Stop


1.0 Executive Summary

   This marketing plan is designed to give us a blueprint for marketing our new retail store, The
   Boulder Stop. We have included a complete market analysis, target market summaries, a SWOT
   analysis, a detailed milestones table, and other relevant discussions.

   Our ambitions for this marketing plan include:

        • Using our existing Internet and direct-mail marketing expertise to build local promotions
          and marketing literature.
        • Devising lucrative promotions that will draw sponsorships from possible strategic partners.
          These promotions are key to our strategy of increasing our strategic alliances through cross-
          promotions.
        • Identifying our strengths, weaknesses, opportunities, and threats.
        • Identifying the local market forces, target markets, and promotional opportunities.

   We hope this marketing plan creates a long-term growth model for our retail success. The Boulder
   Stop has been successful at direct mail and Internet sales, and we hope to make a smooth
   transition into retail.



2.0 Situation Analysis

   The Bend/Redmond area is growing faster than any other Oregon metropolitan area. This growth
   is fueled by the purchase of 2nd homes, from home-buyers nationwide and retirees, or those
   searching for an idyllic America. In addition, many people in Western Oregon make the two to
   three-hour drive from Portland, Oregon's largest city, or Eugene, site of the University and
   Oregon's and the state's second largest city, to escape the Spring, Fall, and Winter cloud cover and
   rainfall. We count all tourists and locals as potential customers, since we offer coffee and ice
   cream, as well as climbing gear and events.

   Many locals in Redmond believe that growth, for the sake of growth, is a political disease. They are
   right. We must make sure our physical and sociological impact is kept to a minimum, and that
   locals maintain the quality way of life they deserve.

   Our local competition is not as fierce as our direct mail and Web competition. They currently do
   very little marketing and very few company-sponsored events. We won't rule out the possibility
   that they may do so in the future as a response to our projected success in such marketing. The
   competition for coffee is an issue, yet we aren't directly competing with the downtown
   Starbucks(tm), since we don't cater to the urbane culture, but rather the natural explorers, those
   who would rather go to a state park than city shops.



2.1 Market Summary

   In a 1997 state-generated report, consumer expenditures for espresso beverages and rock
   climbing equipment combined rose to $4,000,000 in Central Oregon. We expect sales to increase
   steadily as Oregon's population grows and the rock climbing industry becomes increasingly
   popular.

   The proximity of several large cities in Western Oregon helps fuel our business, as does the status
   of Smith Rock as an international destination for rock climbing enthusiasts. Individuals from as far
   away as Japan, Europe, South America, and Australia travel to Smith Rock to 'recreate'.

        • Direct Mail and Web Market



This sample plan produced in Marketing Plan Pro™ software. www.paloalto.com 1-800-229-7526       Page 1
                                               The Boulder Stop


            Our direct sales are fueled by our current list of customers and Web co-marketing. To date,
            we have allocated minimal funds to marketing over the Web. We have relied on word of
            mouth, free banner exchange programs, our printed catalogs, and Web reviews to drive
            revenues to the site. We count worldwide readers of such publications as Rock & Ice
            magazine and Outdoor Adventure among our target direct audience.

        • Retail Market

            Our three main target markets are weekend warriors, hard core climbers, and the curious.
            We predict that the number of hard core climbers will grow faster than the number of
            weekend warriors. Climbing is becoming more and more technical, an "insider's sport", and
            we believe this will fuel the growth of dedicated, highly sophisticated climbers. At the same
            time, amateur growth is leveling off.

   This market analysis is conservative when compared with Oregon's predicted population growth of
   2% per year and Bend's 5% average gains over the last five years.




                                               Target Markets




                                                                                   Weekend warriors
                                                                                   The curious
                                                                                   Hardcore climbers
                                                                                   Direct customers
                                                                                   Other




       Table 2.1: Target Market Forecast

        Target Market Forecast
        Potential Customers           Growth       2000       2001      2002      2003        2004      CAGR
        Weekend warriors                 25%      40,000    50,000    62,500    78,125      97,656     25.00%
        The curious                      25%      30,000    37,500    46,875    58,594      73,243     25.00%
        Hardcore climbers                30%      15,000    19,500    25,350    32,955      42,842     30.00%
        Direct customers                 35%      85,000   114,750   154,913   209,133     282,330     35.00%
        Other                             0%           0         0         0         0           0      0.00%
        Total                         30.70%     170,000   221,750   289,638   378,807     496,071     30.70%




This sample plan produced in Marketing Plan Pro™ software. www.paloalto.com 1-800-229-7526             Page 2
                                             The Boulder Stop


2.1.1 Market Demographics

   Direct Mail and Web Market

    Geography:              80% U.S. customers.
                            15% European customers.
                            5% Other countries
    Age:                    18-34
    Sex:                    75% male
                            25% female


   Retail Market

    Geography:              90% U.S. customers
                            9% European customers
                            1% Other countries
    Age:                    15-45
    Sex:                    62% male
                            28% female


   Males buy gear through catalogs and the Web more often than women. This skews the direct sales
   toward male customers. In-store customers tend to be younger than catalog shoppers, and a
   larger % of them are locals or native to the United States.



       Table 2.1.1: Target Market Analysis

        Target Market Analysis
        Market Segments                       Age    Household Income   Experience      Sex         Native
                                                                         Climbing
        Weekend warriors                     20-35           45-65K      1-2 years   65% M            Yes
        The curious                          35-45          35-100K      0-1 years    50% F        90% No
        Hardcore climbers                    15-35         10K-120K     3-15 years   70% M         60% No
        Direct customers                     18-34          24K-65K     0-10 years   75% M         80% No
        Other                                    -                 -             -        -             -




2.1.2 Market Needs

   There are two important underlying needs, and the combination of gear and coffee serves both.
   The Boulder Stop's function is similar to that of the ski lodge at the bottom of the slopes; selling
   important gear while providing a place for snacks, beverages, and talk. We're the rock climber's
   version of the ski lodge.

      1.    There is a real need for a highly professional provider of climbing gear near the Smith Rock
            location. People forget to pack exactly what they need, and things break.
      2.    There is a practical need for coffee, a meeting place, and conversation. This is part of the
            activity focus of the location.
      3.    There is a need for 'one-stop' shopping. Climbers, and recreationalists don't want to have
            to buy their gear at one store, and driv
								
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