Introduction: Surf 4 Joy is a company known for selling surf equipment and accessories, consisting of stores in the international market of Europe, Australia and North America. The brand makes use of multiple distribution channels as they sell through both online and physical stores, distributing their products on an international basis. On the basis of remaining relevant, Surf 4 Joy has undertaken the approach of diversifying their products through novel and innovative means, as this may help in increasing the customer demand and market share of the company. Surf 4 Joy has developed a new Stand-Up Paddle Board made entirely of recycled plastics- the SUP 7. They have attempted appealing to a large demographic across all ages; beginner to expert. This report consists of a thorough marketing campaign that will remain under operation for a period of six months, keeping in mind the campaign budget of $80000. Market Analysis: The Stand-Up Paddle Board market has a promising growth forecast, with an estimated US$2.2 billion being set to create in absolute opportunity during the forecast period 2022-2023. At a global scale, the SUP market had been estimated to be USD 337 million in 2021, and USD 365 million in 2022, with a growth projection of CAGR 8.55% in the forecast period 2022-2027, leaving the market at USD 551.5 million by 2027. Additionally, the global growth rate for the forecast period 2022-2025 is USD 108.21 million. All these factors contribute to prove that the SUP market has a strong growth, with a large market scope and high returns. Though, the market is said to be fragmented due to the large proportion of domestic and international players. This fact remains to be at a disadvantage to Surf 4 Joy since they may not wield the power to exploit and influence the market to move in a direction favorable to their means. Furthermore, most of the market share is captured by key players, namely: Billabong, Quiksilver Inc., Hurley Inc., etc., who dominate a significant portion of the market, while also possessing a strong global presence. This may seem to be a challenge for Surf 4 Joy as it may prove to be difficult to penetrate the market scene with their new product line while also swaying sales and revenue in their direction. Apart from the key players, the more important competitors of Surf 4 Joy are the top 5 market players: Ben Bucker Board, Blue Planet Surf, Funky SUP, Dunn-rite products, and Hobie Cat Company. Such leading companies of the SUP market have a global network of distributors and retailers in over 50 countries. Consequentially, Surf 4 Joy would need a long period to deeply penetrate and base a strong global presence. All in all, the projected forecast value of the SUP market is USD4.3 billion, with an expected market value of USD 1.65 billion. Such statistics demonstrate an auspicious outlook for Surf 4 Joy, as there is room for expansion of consumer base and market share. Market trends: The SUP market has a strong growth factor for a multitude of reasons. As growing concerns for health and fitness arise, individuals are taking their health more seriously, a shift in trend working in favor of the SUP market. StandUp Paddling carries an adventurous aspect in its recreational and leisure activities such as yoga, surfing, touring and racing; boosting health along the way. There has been a distinguished adoption of surfing in adventure tourism, alongside a growing trend among youth who are interested in the availing aspect of adventure that SUPing brings. As a result, water equipment suppliers have implemented heavy growth tactics to benefit from the growing trends of demand. Furthermore, numerous training facilities from US to Europe began offering SUP yoga classes in relation to the uptick in demand for use of SUP for yoga from 2022-2023, contributing to the expansion of the water sport industry. One of the main reasons demand for SUP yoga has risen is due to the lack of supervision needed, providing a serene ambient environment when doing such exercises. In terms of demand, a large proportion of the growing trend can be attributed to the growth of the tourism industry, as Stand-Up paddle boards deem to be integral in recreational and leisure activities pertaining to adventure tourism. Manufacturers have begun adopting innovative technologies and novel materials to increase demand in the forecast period. This ties back to the increase in sports penetration to the level where overall demand has risen global sport equipment sales, illustrating how impactful Stand-Up Paddling is to the market. In relation to innovative strategies implemented by manufacturers, low cost plastics are predicted to be the most favored material for SUPs; attracting manufacturers and increasing demand. Evidence for this can be found in the fact that plastic is said to have a strong holding of approximately 70% revenue shares. The growing trend of convenience, eco-friendly materials and ease of use are all attributed to the increasing demand for plastic paddleboards. The rising popularity of storage compartments existing in paddleboards assigns plastic as the best option for consumers. The preferred material is proven to be affordable, strong, durabile, easy to handle, sturdy, and has a long lifespan tying in with its endurance. These factors are supportive of Surf 4 Joy’s adoption of recycled plastic in their new products, as it relates to the theme of cheap and eco-friendly; a rare find in today’s economy. The incorporation of eco-friendly materials develop more reliable and versatile products with better insulation. Through strategic collaboration, manufacturers may find it possible to increase production while meeting consumer demand, increasing overall revenue and market share in a global scale. Sales And Demographics: Detailed analysis of the demographics concerning the SUP market have found that 50000 stand-up paddle boards are sold annually in the US. With the average annual paddle board revenue as $1100, a total of $55 million is earned from paddle board sales. Similarly, a 2015 market report illustrates the total European paddle board sales to be 80000. Altogether, the SUP market sees a total of $143 million annually in the US and Europe alone. Data sources from 2011 show that 55000 paddle boards were purchased in the USA, 95% of which were manufactured outside of North America, though a large bulk of the sales originated from North America. In 2012, it was found that the median age for individual paddle boarding was 28, with a median age ranging from 18-35 having the most participation and interest in the sport. By 2013, it was clear that 43% of the people who participated in SUP related activities were female, which was accredited to the lure and appeal of SUP Yoga. Recent data figures from the National Marine Manufacturers Association, in the year 2019, display the fact that more than 180 million individuals in the United States have taken part in water sports events. Target Market: North America The best target market for Surf 4 Joy is North America. In 2020, North America had dominated the global surfing equipment market with a share of 47.09%. The expected market share of North America in 2023 is 11.2%, alongside an estimated 38% growth to originate from North America as well. Control over the water sport equipment market arises from the heavy adoption of cutting-edge technology, and the substantial level of large players existing in this region, creating sufficient growth opportunities in this particular market. Moreover, growing trends and interest in water sports among individuals across the region have further advanced growth in the paddleboard market. The region is comprised of lakes and rivers that are perfect for paddle boarding. Geographical factors are also attributed to the growing success in the water sports market as North American weather is deemed to be favorable for paddle boarding. The temperate climate of the summers and the calm, tranquil seas allow paddleboarding to be a practical option all year-round in the North American region. Furthermore, the growing interest in leisure sports, presence of countless market players in the region, and expansion of surfing events and competitions cumulate to dominate the global market for water sports through rapid growth. SWOT Analysis: Strengths: Increased amount of surfing contests Prevalance of surfing in adventure tourism Use of SUP in yoga and leisure activities Increasing government funding to drive up SUP board sales Opportunities: Increasing investments to boost leisure and recreational activities Numerous business opportunities to arise from the inflatable boards market segment since it accounts for the largest market share High level of distribution channels available Changes in individual’s lifestyle, adoption of trends by youth and higher disposable income Weaknesses: High costs associated with SUP which may inhibit the growth of the market Lack of skilled and experienced professionals Threats: Highly prone to getting affected by economic and environmental impacts Limitations in Factor of Productions Competition: The main competitors to Surf 4 Joy are: Naish International, EXOCET, Tahe Outdoors, BOARDWORKS, C4 Waterman, Rave Sports, Sun Dolphin Boats, RED Paddle co., Coreban, NRS and Slingshot Sports. Blue planet surf, an important player of paddle boarding had taken over the management of a Tropical Rush Store in Haleiwa, which had significantly benefited the company in improving sales of SUP alongside increasing demand for SUP board rental services. Similarly, on 23 August 2011, Dunn rite products had introduced a floral inflatable SUP board. This paddle board was designed with military grade PVC, allowing the material to be rigid, beautiful and durable with a maximum weight capacity of 435 lbs. What’s more is the fact that large companies have access to a plethora of distribution channels, including but not limited to: online sites, franchised sport outlets, third-party online, modern trade channels, retail sport outlets, independent sports outlets, and specialty stores. Successful existing marketing campaign: Red Paddle Co.; digital marketing and, Love the Oceans initiative Red Paddle Co. is a water sports equipment company who prides themselves in the passionate and enthusiastic community of paddle boarders they have built. The brand has consistently shown a clear ESG focus, and has proven their respect to the environment by completion of its B-Corp application. The company is highly focused on a continuous ‘Taking Steps’ strategy that aligns with their aim to reduce the total global impact as well as working towards a Net Zero status. In their product development, they have also undertaken a ‘design-for-disassembly’ approach wherein they may remain serviceable to consumers for years, allowing consumers to change or replace their component parts as and when needed. Love the Oceans: Love the Oceans is one of the world's leading ocean conservation charities, and they had partnered with Red Paddle Co., which is one of the key players in the sports equipment market and a leading manufacturer of inflatable paddle boards. As part of their collaboration with Red Paddle Co., the company has promised to donate 10% of their sales revenue to LTO. This significantly boosts the brand image of Red Paddle Co. and lines up with the growing market trends, namely the popularity of ecofriendly and sustainable products among the consumer base. Furthermore, Red Paddle Co. had come up with a global campaign wherein individuals were asked to design their Ride’s award winning 10’6” paddle board, and had also urged creatives to participate. As a result, their board ended up being affordable, customizable and had storage compartments which allowed the board to be fitted with accessories( fishing rod holders, backrests, etc.) The campaign was a competition that was a collaboration between Red Paddle Co. and Spoonflower. At last, a special repeater pattern was designed by thousands of creatives for their first ever limited edition SUP. Such initiatives have greatly propelled Red Paddle Co.’s marketing campaign further as they have made use of multiple selection of medias and involved people as well, coming under a community based approach. The brand has consistently and successfully followed through with a strategy of innovative and novel products. Red Paddle Co. has also registered multiple patents and developed processes and materials that have proven to be industry leading. These approaches have helped inflatable technology prevail onto the forefront of the industry, to the level where inflatable paddle boards are now the most dominant technology in the market. Alongside the more social approach, Red Paddle Co. had also approached Innovation Visual and Wired Media to enhance their digital marketing scheme. Wired: While looking for an agency that could service web development and digital marketing tools, Red Paddle Co.(RPC) approached Wired media. They had a goal to cut down on the number of agencies they worked with, and so, Wired manages all of RPC’s digital marketing activities, such as: SEO, PPC, paid search, ongoing website maintenance and development. Innovation Visual: This company had undertaken a comprehensive audit of RPC’s site and improved them in terms of organic searches. They even got their paid campaigns to work more effectively to target potential customers in UK, US, Australia and, Europe. They had implemented individual accounts for their key global markets and improved them in terms of search terms, demographics and locations. Innovation Visual had designed and implemented a structured approach to their search and display ads, and had even introduced video advertising as a means to improve brand awareness. By 3 months, RPC’s organic visibility of their site for the 50+ key terms had doubled, and the rankings for a number of their main products had risen to the top 5 on Google, when previously they had been ranked outside the top 30. The rapid increase in organic search visibility had led to high increases in traffic, as 115% of an increase in monthly users had been found, within just 3 months of working with innovation visual. Product lifecycle: SUP 7 will be made available in brand-new shops throughout the North American continent. Customers will learn about it on the Instagram feed. Within the first few weeks of the advertising effort, word should start to get out about the product. Due to this, there will be a rise in demand and a wider distribution of SUP 7 after marketing initiatives. During this time, higher revenue and sales are anticipated. Sales of SUP 7 would eventually reach their maximum level when it reached its most profitable period, and competition was anticipated to rise. Profit margins will start to decline when SUP 7 fills the market to saturation. At this point, rival businesses would start developing fresh products in the same market. At this point, SUP 7 can experience a takeover by rivals, lose market share, and start to decline. Extension strategies: Partner with surfing clubs, pro surfers, and surfing superstars who may bring in more clients and consumers. Make use of the exclusive online community that may provide a single platform for all surf industry businesses. Implement use of specialty stores that are willing to pay a higher price for quality goods. These stores may set themselves apart by marketing themselves as a family and community based store, catering to young teenagers and parents alike. Make use of the increasing disposable income of consumers who prefer premium products Take into consideration: functionality, product features, comfort. Heavily market why plastic is a preferred material as they are high in strength and durability. Implement video and google ads Market the physical and mental benefits of surfing. A surfing expedition comes along with great solitude and tranquility which is a great appeal to surf enthusiasts. Make use of such professional endorsements which may bring about the necessary boost in increasing sales. Marketing Plan: Marketing Aims and Objectives: As part of the marketing campaign for Surf 4 Joy, this report consists of some goals set for the company in alignment with a goal of boosting sales and revenue, increasing their consumer base as well as their market share. 1. Boost social media profile on multiple selection of media: - Gain x number of social media followers within the first month - Work with online influencers who may promote the SUP 7 to increase brand awareness and make use of influencer marketing - Launch a specific number of social media content programs by x% 2. Make use of partnerships, collaborations, competitions, and events: - Partner with physical surfing clubs, and pro surfers alike who may bring about more consumers, mainly targeted towards youth who are interested in the adventure aspect of paddle boarding - Partner and collaborate with NGO’s and charitable organizations to increase popularity on social and humanitarian means - Initiate and host water sport events, where a fixed number of x% of revenue would be passed onto charitable proceeds. - Globalize SUPRA to the North American region, where an eco-friendly water sport event may boost popularity for the brand. And so, promote a campaign similar to the Kerala Backwaters challenge. 3. Build a strong global presence: - Make use of multiple distribution channels in order to make the products widespread - Run continuous video advertising, google ads, and Instagram ads to reach the target demographic of 18-35. - Cater products toward social causes such as feminism to appeal to the large consumer base of females - Implement marketing strategies that are both physical and digital 4. Improve digital marketing in an attempt to follow competition matching: - Improve organic visibility by x% for the first 100+ terms in which Surf 4 Joy may rank. - Rank up to the top 5 on Google within 2 months - Work alongside marketing and consulting agencies that may serve as an extension of the company itself. - Follow through with a complete audit of the company’s website - Follow through a complete overhaul of paid campaigns, and implement a well structured approach to search and display ads. 5. Appeal to the wide demography of beginner to experts; kids to adults: - Appeal to families by appearing as family stores in physical stores and billboards - Host events that require a team effort, so that individuals may purchase experiences, not just products. - Upload guides and instructions on YouTube and the company’s website - Incorporate a ‘customization’ feature on online sites and physical stores wherein kids and young teenagers may design their own boards, promoting connectivity with products - Provide gift accessories for new-time members and existing members after x number of purchases so as to maintain customer loyalty - Include a rewards and points system 6. Establish good communication between the company and customers: - Enhance the chat function on the site to include colloquial terms and jargon so that the bot’s immediate responses connect more to consumers since it would imitate a real conversation. - Increase salary by x% to employees so as to maintain the good customer service. Follow through with costs to employers and raise them by x% as and when profit increases by x%. - Include feedback boxes in all stores across the North American region and make use of reviews on the website. These marketing aims have been set with the intention of keeping up with competitors. After thorough research, evidence has proven that the market for water sports equipment is highly dominated by the top 5-15 market players. In order to boost the ranks of Surf 4 Joy to meet the level of the top market players, the marketing approach set takes into consideration physical and digital marketing. The main theme is competition matching, keeping in mind the marketing campaigns by Red Paddle Co., and following en suite with similar marketing tactics. The main strengths of Surf 4 Joy is their strong customer service, innovative products, eco-friendly products that match with popular trends and their premium products. The marketing aims and objectives takes these into consideration and so, I have set objectives wherein their communication with consumers remain top priority and top tier. They may mix with multiple companies and consumers alike so as to gain popularity and make a stand of themselves alongside boosting brand image. Partnerships and digital marketing tactics go well with this aim as a large number of individuals and brands can be reached all in one approach Selection of Media: Strategies: Video advertising, such as YouTube and TV broadcasters to display ads Include an Ad feature on all social media platforms Make use of app development to boost ease of use and create competition Google advertising and E-mail marketing to keep consumers in the loop and reach a large consumer base quickly Consistently run ads on Instagram and Youtube Make use of billboards wherein a large number of foot and vehicle traffic may be reached Tracking performance: Conduct analytics on views on advertisements of youtube and Instagram ads Check how many orders have been made on different product segments bi-monthly Calculate profit or loss every month, and make use of contingency funds accordingly Conduct analytics on time spent viewing the website and e-mail newsletters by consumers Conduct analytics on how many consumers actually use the chat function. Marketing Mix: 7 P’s of marketing Price: Numerous pricing strategies may be implemented to create the best pricing plan for the wide demographics of consumers. Consumers with high amounts of disposable incomes prefer premium pricing. Other pricing strategies such as: bundle pricing, competitive pricing, psychological pricing and dynamic pricing may be implemented as well. Product prices may range from affordable($50) to premium/exclusive, ($2000). Place: The marketing campaign will heavily make use of digital marketing to breach consumer bases of all demographics. A few new in-store places may also be constructed. Promotion: Boards displayed on billboards, social media, etc. New articles of adventures by pro surfers and novice surfers can be uploaded on email newsletters. Foot traffic, vehicle traffic, and word of mouth to be trusted for more of an in-person marketing approach People: Pay employees higher salaries as profits increase, keep customer service at a good level. Improve company culture to be more community-based and implement a family based culture as well. Process: Products ordered online to be packed and given with proper packaging, a good shipping service will be used. The interactive features of the website allows consumers to review products, and boosts communication between the company and individuals Physical Environment: Make use of attractive interior designing, and create a sort of visualization experience with digital billboards that show clips of surfers,waves, etc Product: The products will be made from affordable and preferred materials, namely recycled plactic. The stand-up paddle boards will have storage compartments and will be made as ‘design for disassembly’ so that consumers can benefit more from the use of the surfboards as they would be more convenient and serviceable. The surfboard will also be inflatable as inflatables take up the higher proportion of market share. Justification: I have selected a pricing strategy that incorporates different pricing ways so that all age groups can be catered to. It is also found that as disposable income increases, people may want more premium products, so the marketing campaign will focus more on premium pricing as the North American region has higher income and wealth levels(people are richer). The marketing campaign focuses more on digital marketing so as to follow through with competition matching and build a strong foundation on online platforms so that a widespread consumer base can also be reached. One new store will be constructed to attract more in person consumers as well, this will be done to have a marketing mix of digital and traditional ways. The product is made from recycled plastic so that the company appeals to consumers with a strong ethos and humanitarian aims. The promotion tactics incorporate physical as well as social media marketing strategies so that all types of audiences can be reached. Budget Plan: Costs Digital marketing: Product Agency and Consultation fees: CPA SEO PPC advertising Social media marketing Instagram ads Google ads Video advertising Physical/Inperson marketing: Cost $100 per hr. Total hrs: 30, (10-20% markup) $50 per customer, 200 new customers $1500-$5000 per month (3 months) $9000 per month $4000-7000 per month (2 months $7k per day $490 per week $ 1960 (2 months) Cost per click: $2-4 Most expensive keywords: $50 Total clicks: 1000*2= $2000 Pay for keywords: 50*100=$5000 Cost per view: $0.01-0.03. 100000 views is approx. Total views: 1000000*0.01= $10000 Construction of 1new stores: One store: $10K Store insurance Inventory costs Interior designing Labor costs for 2 new stores Entry formation costs(permit, insurance, etc) Contingency fees $2000 $5000 $5000 $5000 Total Cost $3300 $1000 $4500 $9000 $8000 $3920 $7000 $10000 Total: $10k $4000 $2000 $2000 $5000 $5000(depending on roles) $4000 $500 $500 Justification I have chosen to focus more heavily on digital marketing due to the fact that it would be easier to reach a wide consumer base and also to keep up with the rising trends of technological advances and keep Surf 4 Joy relevant and up to date. It has also been chosen so as to follow competition matching, since RPC had very similar digital marketing schemes that propelled them to the top of the market, so I have chosen to take a similar approach $46720 I have also incorporated physical/In-person marketing as I have kept in mind the fact that the marketing campaign would need to be diversified and can’t be solely based on digital marketing schemes Total: Total of digital marketing and physical marketing only, so I have implemented some form of traditional marketing that acts as a safety blanket in terms of having a tangible asset and having something that represents the brans ‘Surf 4 Joy’ and demonstrates the brand image and personality $24900 $46720+$24900= $71620 Gantt Chart: Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 R&D, working with consultation company Digital marketing Implementation/ Advertising Follow through/Check-up on performance Reliability and Validity: I have conducted solely secondary research that is high in reliability and validity. Almost all my sources are up-to date and trustworthy, and contain reliable information that matches the true and real market of the water sports equipment industry. In the places where I couldn’t find data that was up to date, I had taken data from the years 2011 onwards, for the demographics to be specific. The data still lies within the same decade, so can be said to be somewhat relevant. There are many data gaps in this industry, the content of statistics is limited and a deep scope of data cannot be found. Valid and qualitative data also was limited, only a few credible sources had relevant sources. I couldn’t conduct primary research due to time contstraints and practical limitations, though, I have conducted secondary research that is thorough enough to implement and plan out a marketing campaign based on statistics and market research from the secondary research.
