Marketing Plan This marketing plan is for Perfect Pitch, a new product used to help aid baseball pitchers’ accuracy in a fun, game-like atmosphere. EXECUTIVE SUMMARY This marketing plan will be used to outline the necessary actions that are needed to take in order to effectively market my new product, Perfect Pitch. I have included a SWOT analysis, a market summary, some beneficial market statistics, and other information that will help booster this campaign. My goals for the marketing plan are to: establish the product’s strengths, weaknesses, opportunities, and threats find a relevant target market examine ways to create a positive brand image make a decision regarding licensing and sponsorship opportunities With this plan, we attend on building our product’s success. 1. MISSION 1.0 Mission Perfect Pitch is unlike the average pitching net. This new product is used to improve pitchers’ accuracy by creating a competitive, game-like feel. Perfect Pitch is set up in a yard or field, and at first glance, appears to have a similar appearance to other target nets on the market. Once switched on, the target illuminates a section of the strike zone using LED lights. If the pitcher hits this lit up area of the target, he or she is rewarded points. Another feature can be activated for intermediate athletes that displays different colors for different pitches. Perfect Pitch also includes a manual that shows how to throw different pitches, to help beginners add to their repertoire. This product will be targeted to baseball or softball players in Little League and High School. It can also be targeted to Little League and High School teams. Any position player can use the Perfect Pitch to improve their accuracy. We plan on obtaining a license from Little League and Major League Baseball to add their logos to our product. This will help create a reputable brand image for our product. Image is very important; but so is customer service. We want to make sure our customers are satisfied with our product and that it meets all expectations. A warranty can be purchased on the product, specifically the LED light system, to ensure that they are always working. All Perfect Pitch products will be sold online and in retail stores. 2. SITUATION ANALYSIS 2.0 Situation Analysis Children all over the world play baseball or softball throughout their lives. Even with the increasing popularity of other sports, these two still remain near the top of the list. Competitiveness and gaming is also becoming more present in kids’, teens’, and young adult’s lives. People seem to be turning everything into a competition. With this change in mindset comes a larger desire to win. There needs to be a way to make training to win more fun. Our competitors do not have the technology we have right now. Many nets only include a strike zone to aim at, but no LED lights and point systems. The competition does sell their products in retail stores and online, but the features our product has are far superior. 2.1 Market Summary According to the National Federation of High Schools, there are about 14,988 high school baseball teams in the United States and about 455, 414 players. Little League is the “largest youth sports organization in the world” with approximately 2.6 million baseball and softball players worldwide. This was a statistic from 2008, and the numbers are probably higher in 2014. With so many children playing baseball and softball, we predict high sales for our product. Web Market With a large portion of the population involved in online shopping and social media, we intend on using the web to our advantage. The Perfect Pitch product will be sold on our own website, along with the websites of some major sporting goods stores. We will also use advertisements and social media to inform potential customers of our product. Retail Market Our baseball and softball target markets are intermediate pitchers, amateur pitchers, position players, and potential players. We predict that a large number of our retail sales will come from children and teens that are already involved in sports. Potential new players may see our product online and will be interested on purchasing it to develop skills. 2.1.1 Market Demographics Baseball/Softball Players 2.1.2 Market Needs The Perfect Pitch helps fulfill some needs that the market possesses. Among these needs include: 1) The need to make training and practicing for a sporting event enjoyable. Many practices are grueling for young athletes, and coaches may get too focused on winning that they neglect having fun. 2) The need to encourage young athletes to practice developing skills not only in practice, but also on their own time. 3) The need to be able to practice when an athlete is alone. Practicing without a friend available can be difficult without the right equipment. 2.1.3 Market Trends Baseball and Softball participation has not declined significantly throughout the years Gaming has increased throughout the 21st century Online shopping has grown 2.1.4 Market Growth The number of baseball players in the United States increased from 2009 to 2010 by .72 million. 55 % of Facebook users surveyed in a study say they play social games and 19% even say they are addicted. Online sales have grown from 2009 to 2010 by 30.5 billion 2.2 SWOT Analysis The strengths, weaknesses, opportunities, and threats of Perfect Pitch are: Strengths: Unique Product Licenses from Little League and Major League Baseball Strong knowledge of baseball Strong knowledge of social media platforms Can play by yourself Durable Weakness: Lack of financial startup money Limited experience running business Opportunities: Baseball is a worldwide recognized sport Increase of online shopping Many people like games/competition Cheap costs to advertise online Threats: Cheaper for regular nets Increase in popularity of other sports Other companies taking idea of using technology 2.2.1 Strengths The Perfect Pitch has many strengths. One major strength our product has is that it is unique. There may be other pitching nets available for sale, but none of them have the game-aspect with the LED lights and scoring attached to them. The LED lights themselves are long-lasting, durable, and can withstand harsh temperatures. The product is also beneficial for athletes who want to practice, but do not have anyone to train with. The pitchers can throw by themselves and may even try to beat some high scores. Licensing is also a major part of the success of this product. If customers notice the Little League Baseball and Major League Baseball logos on the packaging, they may feel like they can trust it more. These two organizations are very reputable, so having their names on the box can profit Perfect Pitch. One last strength is my personal knowledge of baseball and social media. I played baseball throughout my childhood and in high school. I know what it feels like to be a baseball player and what needs I had. I enjoyed throwing into the pitching nets; however, it would lose the excitement after awhile. As for social media, I have many different accounts and use them to my advantage. 2.2.2 Weaknesses There are two definite weaknesses of this project. One weakness is that I am a college student with very little funds to start up a new business. Business owners need to use some of their own money in the beginning to establish an effective campaign, which I do not possess. Another major weakness is that I do not have the experience of previously running a company. Although I have created ideas and discussed with clients about products, the competition has more experience in the field than I do. 2.2.3 Opportunities Along with strengths and weaknesses, the Perfect Pitch also has some promising opportunities. Baseball, unlike American football, is a world-wide sport. Countries all over the world have baseball leagues and produce highly trained athletes. Since people outside the United States participate in the sport, our product can be sold worldwide. There are also certain trends in the market we are looking to enter. There is a large increase in the use of technology in everyday households. Many people are purchasing goods online or using social media platforms to advertise different products. Online marketing is also becoming a much cheaper technique than trying to market in papers or on television. With technology advancements, we also can notice things such as a growing desire to participate in gaming. Like the Sales Huddle we demoed in class, adding a game-like feel to skills building programs can increase production. 2.2.4 Threats Finally, it is crucial for our company to acknowledge some threats we may come across during the process. One threat is that regular pitching targets will be cheaper than our technology driven target. If a customer cannot afford our model, they may decide to purchase a cheaper alternative. The competition can also try to replicate our idea if the Perfect Pitch becomes successful. Another trend that can affect our business is that there are sports that are growing in popularity. Football, basketball, soccer and lacrosse are some other options athletes can decide to play rather than baseball. Children are also more likely to specialize in one sport, which creates the need for decision-making. 2.3 Competition There are certain companies that have created products that will be considered competition for the Perfect Pitch. Many sporting goods companies such as Franklin, Rawlings, and Louisville Slugger have produced pitching nets with images of a catcher on them. Pitchers throw at the target and see if they hit the strike zone or not. It is difficult to know if you hit the strike zone in these products. Franklin also has a similar design in another product with a backstop included to it. Another product, (produced by companies like Easton), have nets in them to catch the baseball in the target zone. This setup is better than the catcher design, because you can see which target areas you hit; however, the pitcher decides where he or she wants to throw it. There is no development of control and accuracy because even if the pitcher gets the ball into one of the nets, it may or may not be the one they were aiming for. One last similar product for pitchers is the pitch back. Pitch backs use the simple strategy of the first example I have included (pitching nets with catchers on them), but also stretch the main net so that balls thrown at the target are sent back to the pitcher. This improves pitcher’s reaction time to batted balls. 2.4 Keys to Success In order for our product to become successful, we must: Attract customers away from the competitors’ products. Even though they have the wellknown brand in baseball, our company must be convincing that we own the better product. Deliver on our promises. If we say our product is the best and most durable pitching net on the market, we have to make sure our customers think so too. If some buys a warranty on the LED lights, they also need to be replaced. Have excellent customer service. This goes for our entire business. If a customer has an issue we must do our best to resolve it. 2.5 Critical Issues As discussed, we are going to have to compete against brands that have existed for a long period of time. They have their reliable brand image and our company will have to develop into one. The Perfect Pitch will be marketed on the ability to improve skills while also having fun. Working with retail stores like Modell’s and Sports Authority will allow customers to gain awareness of the Perfect Pitch. The product will be sold in their stores and on their websites. Our competitors will also be selling their products in these stores, so it is necessary to create an appeal to potential customers. 2.6 Historical Results Since we are a new company developing a new product, we do not have any previous results. Other companies that have similar products have become successful and we will have to strive to become the best baseball equipment company there is. 2.7 Macro Environment Baseball Baseball is a sport that is played worldwide. Even if participation fluctuates in the United States, other countries such as the Dominican Republic, Japan, and Korea have a constant growth of the sport. Little League is extremely popular in many countries (the Little League World Series is even broadcasted on ESPN) and most high schools in the United States have a baseball team. It is not as expensive as sports like football. 3. MARKETING STRATEGY 3.0 Marketing Strategy We will have a licensing agreement with Little League and Major League Baseball We will market our product in sporting goods stores and on their websites We will be offering warranty to replace LED lights if they are damaged in a certain time period We will developing a strong marketing campaign on social media platforms to create awareness 3.1 Mission Perfect Pitch is a fun new way to help kids, teens, and young adults practice pitching. Anyone can pick up a baseball or softball and try to hit the targets that light up. The more targets you hit, the higher the score you receive. Compete against family and friends or try to beat your own personal high score. Older, more skilled athletes may want to turn the difficulty up and use different pitches shown by multiple colors. If you can only throw one pitch, our manual inside the box shows you how to throw others, such as a changeup, curveball, and knuckleball. You will be pitching better in no time. Our customer service team is here to help you. Any issues can be brought to their attention via phone, and they will do their best to come up with a solution. A warranty can be purchased for the LED lights so that you know you are taken care of. Our number one priority is customer satisfaction, and we will do whatever we can to answer all questions you have regarding our product. 3.2 Marketing Objectives 1) To make Perfect Pitch the top seller in the baseball/softball pitching net industry. We want Little League and high school teams from all over the country to purchase our product. 2) To create a large amount of international sales. Baseball and softball players from many different countries can use this product to train during their own time. 3) Once we gain enough money and brand recognition, eventually we would like to sponsor some Little League events. 3.3 Financial Objectives Our financial objectives are: 1) To always have a minimum cash balance of $20,000 2) To grow sales by 13% at the least each year 3) To achieve sales of $500,000 in one year 3.4 Target Markets We want to target baseball and softball players of all skill levels. Everyone can improve in some way, so the Perfect Pitch has a large target market group. We also want to market our product to teams. It can be beneficial for local teams to purchase our product to use at practices. The players can work on their accuracy while having fun at the same time. This can lead to player competitions on the team to see who is the most accurate. 3.5 Positioning For players and teams that want to have a fun way to improve their pitching skills. Training is no longer a strenuous necessity, but rather something that is entertaining and promotes competition. Our brand name will have an index of “reliable” and “top-notch” attached to it. 3.6 Strategy Pyramids Strategy: Increase sales to baseball players, Increase sales to softball players, Increase sales to baseball teams, Increase sales to softball teams, Build customer satisfaction Tactics: License partner with Little League and Major League Baseball, Sold in retain stores, Sold online, endorsements, marketing at baseball and softball events, Eventual sponsorship of event, improve employee training Programs: Regular meetings with Little League and Major League Baseball, Regular meetings with retail stores, marketing booths, employee training programs 3.7 Marketing Mix Our marketing mix focuses mostly on the product. Our company wants to offer customers the best product available for their needs. Although the price may be a little higher than some of our competitions’, the return on investment will be greater. We will also develop a strong online marketing campaign to attract buyers. 3.7.1 Services Offered Since our product is sporting equipment, we do not offer many services. If you bought a warranty for the LED lights, you can receive repair within a certain time frame. 3.7.2 Price Since LED lighting is fairly expensive, the cost of our product increases. We are not afraid to raise our price up to 20% higher than our competitors’ prices. The Perfect Pitch is of higher quality than those made by Franklin and have more technological features. Although we do not want to have prices too high, it is important to make sure that the company profits. 3.7.3 Promotion Advertising will be more important in our plan than promotion. We may be able to discuss some promotions with our retail stores; however, for the most part, we want to advertise to gain customers. Advertising on social media sites such as Facebook, Twitter and Instagram will play an important part on our campaign. We also intend on attending Little League events to market our product. Once develop into a larger brand, we can sponsor Little League and high school baseball events. 3.7.4 Service Our service is a large part of our marketing plan. Our company wants to provide the best service possible. A help line will be open for an extended period of time to answer any questions or concerns a customer may have regarding the product. The warranty for the LED lights is available for purchase if they happened to get damaged. Customers should receive exceptional treatment and all dilemmas should try to be resolved. 3.8 Marketing Research All marketing research will be done by reviews and surveys online. Customers will receive a paper in the box asking to give feedback to help us know what aspects need to be improved. To test different marketing campaigns, we will address a focus group made up of people from our target market. 4. Financials 4.0 Financials Since we have not begun selling our product at the moment, it is unclear how much money the product will grow. As stated, our goal is to increase sales by at least 13% per year (for the first 3 to 5 years). 4.1 Break-even Analysis The numbers that were chosen are rough estimates (since it is difficult to find out the cost of production at the time). We chose to use $50.00 as the average revenue per unit. According to the analysis, the company will break-even at 571 units. 4.2 Sales Forecast Our company plans on educating retail stores about the Perfect Pitch so that they have more information in the sales process. If employees are aware of the benefits of the product, they can use them in their pitch to the customer. We also plan on talking to focus groups to see how the customers think we should advertise online to create more sales. 4.2.1 Sales Breakdown- Retail Store Sales In the retail stores, we plan on seeing certain patterns of growth in sales. We predict an increase in sales March-June (spring baseball season) and September-October (fall baseball season). During the winter, we plan on seeing a decline in sales. Throughout the week, we plan on Friday-Sunday being the days we sell the most. These are days when many people shop and retail stores are the busiest. 4.2.2 Sales Breakdown- Online Sales Online sales are projected to be similar to retail sales. Spring and fall seasons should have an increase in sales while a decrease in sales may occur in the winter. It is difficult to predict which day of the week will produce the most sales because people do not have to go to the stores in order to purchase the product. Each and every day should see a considerable amount of revenue. 4.3 Expense Forecast Perfect Pitch will most likely cost more to produce than the competitions’ products. The LED lights and technology for the scoring can be rather expensive. Advertising, sponsorship, and licensing fees will also account for some of the expenses the company with endure. 4.3.1 Expense Breakdown - Retail Store Expenses There will be some expenses that need to be paid on our products in the retail stores. Advertising and shelf placement is very important. If our product has a section on a shelf where everyone can see it, the cost will be more. It will also cost money to ship the products to the stores themselves. Things such as packaging are also expenses that need to be paid. 4.3.2 Expense Breakdown – Online Expenses Our online store also has some expenses. If we decide to hire someone to create our online store and handle all of the order, they would be expenses. Another major expense will be shipping products, especially internationally. If the item is not shipped properly, it can get damaged. 4.4 Linking Expenses to Strategy and Tactics In order to cut down expenses, there needs to be certain strategies or tactics used. Products can be manufactured overseas to create a low cost, which means more revenue. Even though we are going to have to pay someone to create our website, we can also hire an unpaid intern who can work for credit and come up with ideas based on their perspective. As for shipping, prices will need to be high enough in order to compensate for shipping costs. 4.5 Contribution Margin We plan on dividing promotional and advertising expenses based on projected sales. During spring and fall baseball seasons, we will be spending more money on advertising; however, we also plan on making more money. In the winter, our advertising budget will be lower. In order to create larger profits during the winter, we would need to build another similar product for winter sports (like hockey). 5.0 CONTROLS 5.0 Controls We will have more information about the controls once the product is released and on the market online and off. 5.1 Implementation Our company is going to start off by marketing the Perfect Pitch to Little League and Major League Baseball to obtain a license to use their logos. If this is approved, we will develop our online website, and contact retail stores about selling our product. The products themselves will most likely be made oversees to gain more revenue. On Facebook, Twitter, and Instagram, we will be holding strong marketing campaigns to create awareness our pitching net. We can contact members of our target market, and send them information. We will also use social media for endorsements. People that have bought our product can post pictures or videos of them using it, and we might put them on our site. We will also bring our product to Little League and high school games so that players can try it for themselves. Once the company and our product starts to expand, we will look into sponsoring Little League events, having professional athletes as endorsements, and occasional television commercials. 5.2 Management Organization As the creator of Perfect Pitch, I will oversee the company. We will also hire department leaders and people to work under them. We will have workers in charge of marketing, branding, licensing, and sponsorship. Additionally, there will be some employees in charge of running the online site and processing orders to be shipped. Just like our product, we want our company to have a fun, relaxed environment; but there will still be rules and protocols that will need to be followed. 5.3 Contingency Plan The biggest issue this product faces is that it is very expensive. It is going to cost more to produce than the competitions’ model, which means prices are going to be higher. We need to make sure that we market the product effectively so that customers realize the higher price is worth it. If the product becomes successful, as mentioned, we can sponsor Little League events and hire athletes for endorsements. Creating nets for different sports such as football, soccer and hockey can also produce more income for the company. Products need to expand otherwise they will eventually die out.