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1. Executive Summary
CapX is a unique bungee jumping business established to generate high-thrills through our various service
components. This company offers numerous features including diverse jumping techniques during all seasons as
well as outstanding customer service. CapX is a valuable market to venture into because of its market opportunities.
It will only occupy a third of the market share, with regards to direct competition. This report will outline CapX’s
marketing strategy through projected company objectives and describes the means by which it intends to produce
these goals.

As a new company, CapX’s main focus is to provide an exciting opportunity to our target market as well as
display the natural environment surrounding the Capilano River. The company objectives will help to
achieve this major goal by means of creating awareness, development of the current market, encouraging
customer loyalty, and generating sales relative to the market.

A breakdown of CapX’s internal and external advantages and disadvantages provides a better
understanding of its business model. It enables the company to “build on strengths, correct any
weaknesses, exploit opportunities, and avoid and prepare for any threats” (Kerin et al 300).

The primary target market of CapX is comprised of young adults, age 15-35, with outgoing, adventurous
personalities who enjoy affordable outdoor recreation. CapX has a number of unique characteristics that
separates it from the competition such as specific services including its weekly Saturday Night Life feature
and membership deals.

The four elements of the marketing mix will explain in detail how CapX plans to initiate this service. The
product, price, placement, and promotional strategies emphasize the specific implementation efforts that
CapX will employ in order to attain its objectives.

A budget will be produced from the projected sales revenue versus the fixed operational costs of CapX.
Evaluative controls will be specified in order to measure the success of the business.
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2. Strategic Focus and Plan
Mission
The mission of CapX is to provide a memorable and exhilarating experience that allows consumers to get in
touch with nature, have an adventure and see the beauty of Vancouver.
Marketing and Product Objectives
CapX’s marketing intent is to take full advantage of its marketing and sales potential; this is detailed in four
areas below.
Current Markets: Current markets will increase in size after CapX gains experience, knowledge and credibility.
CapX’s goal is to attract as many customers as possible within the primary target market as well as within the
secondary target market. This will be done by providing excellent service, advertising well and gaining reliability over
time. Our target market is local Vancouver residents and tourists, particularly younger people. After 5 years’ time,
CapX will be a well-known, established company.
Customer Loyalty: By creating a fun and social environment and using our membership program, CapX will ensure
that customer loyalty is created. After two years, CapX will have loyal customers who come to CapX often and share
good reviews with others.
Sales: Sales are expected to increase by around 20% over the next 5 years. This will be done by effective
advertisement and establishing credibility.
Awareness: Awareness of CapX is to be increased among the target audience as much as possible in one year. Our
goal is to make the name CapX well known to consumers. By using compelling advertisements, marketing skills and
word of mouth this is expected to be accomplished.
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3. SWOT Analysis
Strengths

Weaknesses

Good, experienced employees can improve the
business significantly
Proper training for employees is crucial for the
safety of customers

Offers a variety of bungee jump experiences

Can’t differentiate a whole lot from competitors

Offers many other services (gift shop, food,

Many employees must be hired/trained for gift
photo-taking, etc.)


shop, photo-taking, etc. as well
With quality management, the business can

Getting business started is costly
flourish

Bad management can result in disaster
Customer loyalty can be created
Opportunities
Threats

Large demographic

Competition (Whistler, , Nanaimo)

Closer to Vancouver residents/visitors than

Time of year (different seasons, weather)
Whistler or Nanaimo

Must get certain licenses and waivers in order

Can use free social media websites to advertise
to run business

(Facebook, Twitter, YouTube, Flickr…)
Economy; recession is still ongoing, less

Change in population age

Technological advances can be used to

Tax increases
advantage

Change in population age
Changing consumer wants

Changing consumer wants

tourists
CapX’s internal factors have most to do with employees; good employees can make or break the business.
Training is costly, but crucial in order to create a striving business. Management is also an important factor; good
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management is excellent, bad management can result in disaster. CapX offers a variety of other services besides
bungee jumping; unfortunately it is difficult to differentiate a whole lot from the competition.
The external factors affecting CapX are all very different, ranging from location to the economy to
advertising. The main influence is consumers; however there are various other factors that contribute such as the
economy, tax increases, competition, etc. Opportunities include technology, social networking sites and change in
consumer wants. Threats include the time of year, licenses and shift in consumer tastes away from company.
4. Target Market
Geographic Segmentation
The primary target market for the CapX bungee jumping experience lives in the province of British
Columbia, and specifically the urban area of Metro Vancouver and its suburban area of the North Shore. As of 2006,
the Metro Vancouver area held a population of approximately 2.2 million people, while the suburban cities of both
North and West Vancouver that make up the North Shore held a combined population of approximately 170,000
people in 2011.
Psychographic Segmentation
The psychographics of the primary target market for the CapX bungee jumping experience are younger
extroverted people with an enthusiastic, energetic, adventurous, and youthful attitude to life. Further, the primary
target market generally enjoys outdoor and high excitement/ exhilarating activities that provide them with a rush of
enjoyment and fun that most indoor activities simply can’t fulfill. This younger group generally is very social and likes
interacting with people, and enjoys and is interested in doing outdoor activities with people close to them such as
friends and family. In addition, this younger target market for the CapX bungee jumping experience is
environmentally aware and friendly as a result of them enjoying outdoor activities so much.
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Behaviouristic Segmentation
The primary target market for the CapX bungee jumping experience is seeking for an affordable yet
extremely exciting, entertaining, and fun outdoor activity. In addition, this target market is looking to enjoy a unique
and special outdoor activity that they can share with the people they socialize with such as friends or people who are
closest with them such as family. Further, our younger target market is somewhat price conscious as a result of them
only earning an annual income ranging from ten thousand to fifty thousand dollars in which CapX has cheaper and
relatively the same prices that our direct competitors do such as with our cheaper weekly Saturday “night life” offer at
a reduced rate as well as with our membership offer in which once you pay once at the regular price, every
successive jump at CapX is thirty percent off that set seasonal regular price. This encourages loyalty amongst out
younger target market including first time jumpers, regular to medium jumpers, and frequent users of this service.
Demographic Segmentation
The primary target market for the CapX bungee jumping experience is young and single or young and
married couples with no children who range from the ages fifteen to thirty five. The fact that CapX Bungee has a
younger target market and located in North Vancouver is significant as approximately sixty percent of the entire
population in North Vancouver consists of people of the ages five to forty. Additionally, they are either student’s still
attending school or younger professionals working with annual incomes ranging from ten thousand to fifty thousand
dollars. This younger target market is either still in high school or a high school graduate, is in college or university, or
is highly educated and is a college or university graduate.
Points of Difference
CapX Bungee jumping has a number of special characteristics that makes them unique relative to their
direct competitors which “offer very similar products in the same category” such as Whistler Bungee or Wild Play
Nanaimo Bungee and also unique to their indirect competitors who “compete for the same buying dollar in a slightly
different, but related category” such as Grouse Mountain and the Capilano Suspension Bridge which are just minutes
away from CapX Bungee. CapX Bungee offers an exhilarating outdoor activity experience in which you are free
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falling from a platform at high exhilarating speeds that no other known competitor on the North Shore and Metro
Vancouver area offers. Although indirect competitors such as Grouse Mountain and Capilano Suspension Bridge
offer ziplines or cliffwalks, they do not offer a free-falling adrenaline pumping experience in which you can reach as
high speeds like CapX Bungee does. Further, in relation to CapX’s direct competitors such as Whistler Bungee,
CapX offers a more engaging, affordable, and fun environment for its younger target market that no other known
competitor does. For example, our weekly Saturday “night life” offer that allows people to jump every Saturday night
from eight pm to midnight at a reduced rate than they normally pay as well as with our cheaper membership rates
after you bungee jump once. Our weekly Saturday “night life” offer not only creates an social and fun environment
where our younger target market can enjoy bungee jumping with their friends at a cheaper rate than usual, but it also
will provide free transportation courtesy of our free shuttle bus that will take people back to downtown Vancouver.
Positioning
Positioning Statement: CapX is positioned in the Greater Vancouver Tourism Business as a unique, exhilarating, yet
affordable social outdoor activity perfect for young people who want to lead adventurous and exciting lives.
Positioning: In the past, outdoor tourist activities have been either very exciting or relatively affordable, but not both.
CapX bungee jumping puts together these two important characteristics to create a positioning in consumers’ minds
as a fun and affordable outdoor activity.
Positioning Map: This section is a visual
representation of how CapX is positioned in
the Greater Vancouver tourism business in
the eyes of consumers relative to its
competition. It also clears and identifies the
two most important attributes that drive
purchases in the tourism business.
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5. Marketing Objectives Relative to Target Market
CapX Bungee’s marketing intent relative to its younger target market is to provide an exciting, affordable,
fun, and memorable outdoor experience. This will in turn help create customer loyalty and awareness of the CapX
brand and company among its target market. CapX Bungee plans to accomplish this by offering weekly Saturday
“night life” deals which allows our younger guests to bungee jump at a cheaper rate, have fun with friends, and then
get free transportation to downtown Vancouver. Further, CapX Bungee offers membership deals that customers can
sign up for after they bungee jump once at the regular seasonal price. This will allow customers to enjoy thirty
percent off every successive bungee jump every time they return to CapX bungee as a member. These affordable
offers will help CapX Bungee to create customer loyalty by encouraging customers to return. It will help build the
brand name of CapX by making it recognizable as an exciting and affordable outdoor product. It will also make it
stand out among both its indirect competitors such as Grouse Mountain as well as its direct competitors such as
Whistler Bungee. Awareness of the CapX brand and company will also be created among our younger target market
by focusing the elements of our promotional strategy described below on places where our younger target market
typically goes and places where they will be best reached.
6. Strategic Marketing Plan:
This Section outlines the major strategies in the marketing mix that Capilano Extreme will be using in pursuit
of this business venture.
Product Strategy
Capilano Extreme is an outdoor bungee jumping service that allows you to witness the natural beauty of the
Capilano River and cliffs while experiencing a high-thrills and adventure. The product elements are as follows:
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Layer
Description
Capilano Extreme is in the tourism sector; it is a leisure
Core
activity that provides entertainment and adventure for both
residents of B.C. and people travelling into Vancouver
A branded service involving harnessed customers to jump
Actual
from a firm, engineered platform (height?) overtop the
Capilano River supervised by trained professionals
Capilano EXtreme will offer professional photography
Augmented
accessibility,
gift shop and food service, certificate of
accomplishment, membership, etc.
Consistency
CapX prides itself in consistency with regards to our service components. Our staff is professionally trained
and equipped to harness and assist in all the jumps. We strive for quality in our customer service and exceed in all
precautions taking all necessary and additional measures to ensure safety and satisfaction.
Product Line: CapX is certified in offering diverse jumping methods including: ankle, tandem (2 people), chest, back,
and wheelchair jumps all priced per person (prices fluctuate with season).
Night Life: CapX will also introduce weekly night jumping on Saturdays from 8pm-Midnight at $100/person, maximum
16 jumpers per night.
Membership: Free membership (upon first jump) guarantees 30% off the regular price jump (for each season) on any
successive jump, discounted price on photos/ video, as well as flyers and event notifications (holidays). This comes
with a barcode key tag that will be scanned each visit.
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Branding
Brand Name: CapX
CapX plans to encourage brand loyalty with our customers by offering unparalleled quality and consistency
throughout our service. In addition to our regular services, CapX provides professional photography from multiple
angles (on platform and below), an optional live camera videoing your every move during the jumps, various
promotions and discounts, and finally a gift shop and cafe.
Pricing Strategy
CapX offers a variety of prices based on the demand and influx of tourists into the city. These prices are set
seasonally: summer, spring/fall, and winter. This setup allows CapX to guarantee the greatest profit during all
seasons. Prices are set as follows:

Summer: $130

Spring/ Autumn: $120

Winter: $100

Night:$ 100
These prices reflect the incomes of our younger target market. They are relatively lower than our direct
competitors (Whistler and Nanaimo) including transportation costs. In relation to indirect competition, CapX offers
fairly comparable prices to Grouse Mountain’s Zipline tour which also targets the same younger target market as
CapX.
Prices of a CD with pictures and video will be sold at $30 and $15 with a membership
Place Distribution
i)
CapX uses a direct marketing channel, this means that the service begins at the producer and flows
directly to the consumer. This also applies with CapX’s additional photography and a video feature, the
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marketing channel is straight from producer to the consumer. The CD’s with both photo and video will
be produced and sold on site.
ii)
CapX will be located along the Capilano River, up the road from Capilano Suspension Bridge. While
Capilano Suspension Bridge is considered our indirect competition, this location is beneficial to our our
business in numerous ways.

Firstly, the incoming traffic of customers to Capilano Suspension Bridge will see our sign
therefore promoting our outdoor adventure,

There is limited direct competition in the area—the next closest bungee jump is in Whistler
(further drive) and then Nanaimo (drive and ferry)

The cliff itself meets the height requirements (230 above river)

Enough space for a bridged platform to be constructed as well as main lodge for member
sign in, gift and food shop
I.

Easily accessible by shuttle, car, or public transit

Finally, this location demonstrates the natural beauty of the area
Advertising:
CapX plans on using a variety of advertising techniques in order to create brand awareness for our target
market. These methods reflect who our target market is: demographically, geographically, psychologically, and
behaviouristically. Listed below are the methods in which CapX will pursue advertisement strategically ordered in
terms of importance with regards to our customer profile.
Type of Advertisement
Cost
Quantity/Time
Total
$646/four weeks
6 months
$3876
Sktrain Station:
“A” Stations:
Total:
$3876
Skytrain
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Interior Cards:
$43/four weeks
50 units/3 months
$6450
Vertical Cards:
$114/four weeks
5 units/6 months
$3420
Sky Strips:
$2545/four weeks
1 unit/3 months
$7635
Sky Wraps:
$5460/four weeks
1 unit/3 months
$16380
Murals:
$2290/ four weeks
2 units/3 months
$13740
59 units/year
$47,625
Total:
Bus
Interior Card:
$25 ea./four weeks
50 units/4 months
$5000
Full Back:
$999/four weeks
3 units/2 months
$5994
Headliner:
$180/four weeks
10 units/2 months
$3600
Super King:
$816/four weeks
2 units/2 months
$3264
Full Wrap:
$5460/ four weeks
1 unit/ 2 months
$10920
66 units/year
$28,778
1 unit/6 months
$4164
1 unit/year
$4164
Total:
Seabus
Platform King:
$694/four weeks
Total:
Province
$10,000
Total:
Flyers
Brochures
$199/1000 units
15,000 units
$2985
4”x6”:
$249/5000 units
15,000 units
$747
5”x7”:
$249/5000 units
15,000 units
$747
8.5”x5.5”:
$249/5000 units
15,000 units
$747
60,000 units/year
$5226
Total:
Subtotal:
$100,000
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II.
Personal Selling:
Because CapX strives to provide exceptional customer service, we plan on using personal selling
techniques that involve face to face interactions in order to engage our target in what we are offering. As mentioned,
the target market consists of outgoing, extroverted people who are willing to take risk in order to received benefits.
We believe that this form of promotion will ultimately increase awareness.
III.
Public Relations:
CapX plans to gain publicity through our product differentiation, future events, and campaigns that will be
held. CapX major positioning difference opposed to direct competitors is our membership plan as well as our Night
Life feature. Via the grand opening, CapX will show our potential customers and media outlets our distinct features
thus giving CapX an identifiable brand and business. We also plan on utilize PR through testimonials from customers
on the CapX website.
IV.
Sales Promotions:
For CapX, sales promotion also coincides with our product and price differentiation. After a customer
completes their first jump, they have the opportunity to become a “CapX Member.” This authorizes customers to
return and jump at a percentage discount for any successive jump during any season. This method also encourages
customer loyalty; people will be able to return and experience the attraction at all times of the year. Secondly, rather
than one fixed price all year, CapX recognizes that demand fluctuates throughout the year, therefore, we have
seasonal prices that will persuade our customers to come at all times of the year. CapX will also promote various
holiday and special event prices throughout the year, for example, reducing prices on tandem (two person) jumps on
Valentine’s Day. Finally, CapX also offers a free shuttle bus to and from the site
V.
Direct Response:
As previously mentioned, CapX will initiate face-to-face communication to generate awareness about the
service. Other techniques of direct response we would employ are the use of surveys via our business website as
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well as a Facebook page and Twitter Account. This use of social media outlets directly correlates to our target
audience thus we will be able to pose questions and gather information about our service. Once you become a
member with our business, we will also send information via email that will update our customers on our promotions,
services, and special events that we will be holding.
7. Budget
An important aspect of our marketing plan is achieving a competitive cost structure with an optimum pricing
strategy. By adhering to predetermined costs, and achieving sales targets, we will be able to maximize our profit.
Equipment Costs
The two essential equipments to bungee jumping are harnesses and cords. We estimated cost of $6000 for
harnesses and $12000 for cords. With $6000 cost for other equipment, our total start-up equipment costs will be
$22000.
Ankle harnesses 200$ * 6 = $1200
Body harnesses 300$ * 16 =$4800
Bungee cords
1200$ * 10 = $12000
Other equipment costs
= $6000
Estimated equipment cost: $22000
Labour Cost
As bungee jumping is an outdoor activity, labour costs vary by season. We will have more staff in peak
summer season and less staff for winter. We estimated our annual labour cost as $222000 for the first year of our
business.
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SEASON
Customer Service
Operational Staff
Manager
Summer (3months)
2*$2500/month
4*$4000
$4500
$76500
Spring–Fall (4months)
1*$2200/month
3*$3500
$4500
$68800
Winter (5months)
1*$2000/month
2*$3000
$4500
$62500
Extras
$14200
Est. Labour Cost
$222000
Marketing Budget
Advertising helps us to generate awareness, and more importantly, interest in our offerings. We chose the
following advertising methods to reach our target customers:
Type of Advertisement
Total
Sktrain Station:
4%
Skytrain
48%
Bus
29%
Seabus
4%
Province
10%
Flyers
5%
Subtotal:
$100,000
SEASON
MONTHS/days
Summer
June,
July,
OPERATION TIMES
Aug/ 9am-7pm
EST. DEMAND
PRICE
50 jumps a day
$130
90days
Spring-Fall
$585,000
(90*50*130)
Sept, Oct, Apr, May/ 10am-6pm
30 jumps a day
120days
$120
$432,000
(120*30*120)
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Winter
Nov, Dec, Jan, Feb, 10am-4pm
20 jumps a day
March / 150days
$100
$300,000
(150*20*100)
EST. TOTAL REVENUE
$1,317,000
Based on our estimated number of customers, pricing strategy and operation hours all of which vary by
season; we expect our annual revenue to be $1,317,000: 44.4% from summer, 32.8% from spring & fall, and 22.8%
from winter.
EXPENSES
Equipment
$ 22.000
Labour
$222.000
Rent, bills & others
$120.000
Promotion
$100.000
$464.000
REVENUE
$1,317,000
PROFIT
$853,000
After all estimated expenses our first year profit will be approximately $853,000.
8. Evaluation and Control
We will measure our business’s success by comparing our marketing goals with actual results. One aspect
is comparing our actual sales with targeted sales. Additionally, we will conduct surveys in a regular basis to see the
improvement of our product awareness, while also tracking customer loyalty through our membership program. Also
based on our market share we will be able to measure both our sales success and company awareness. This will
give us the opportunity to evaluate our development and improvements from the previous seasons. If there is a
planning gap, or deficiency in results from expectations, we will take the appropriate corrective measures by revising
our marketing plan.
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Works Cited
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