BTEC mock exam final report Introduction: Surf 4 Joy, a reputable manufacturer and retailer of surfing equipment and accessories with a massive consumer base in europe, australia, and north America. Due to the massive growth in the market and an increase in competitors Surf 4 Joy has started on a journey of introducing a new product, the SUP 7, a portable, lightweight, and stable Stand-Up Paddle Board made from recycled plastics. This report outlines a marketing strategy for the SUP 7, while also considering Surf 4 Joy's mission to provide quality water sport equipment and accessories to both beginners and experts, maintaining its loyal customer base and expanding its market share. The report also consists of a marketing campaign which will run for 6 months, taking into account the marketing budget of 80,000$. Marketing aims and objectives: This report outlines strategic goals designed to propel Surf 4 Joy forward. Surf 4 Joy is seeking to sell more, reach more people, and become a bigger player in the market. Which in specific terms means increase sales and revenue, a wider customer base, and an expanded market share. 1. Increase market share in the Stand-up paddle boarding segment by 10% within six months – can be achieved by increasing product offerings and diversifying the product portfolio by either adding in new products or re-introducing particular fan favorite products with minute changes. This can also be achieved by making use of multiple distribution channels which would allow the products to be known and/or undercutting the prices of competitors as the market for SUP boards is mainly priced by premium pricing strategies, lowering prices will bring attention towards Surf 4 Joy which will then help reach all three main aims of the company. 2. Generate a 25% increase in web traffic and online sales of SUP 7- this can be mainly achieved using financial tools – marketing and promotional strategies, these strategies will help Surf 4 Joy’s website to have a higher web traffic as most of the marketing strategies have a direct relation to digital marketing, for example making use of the marketing budget to create awareness for the products and using SEO’s to also bring attention towards the website 3. Increase social media followers on multiple platforms- this Is also completely related to the promotional strategies, such as- hiring of a social media marketing manager, buying social media ads and collaborating with influencers on platforms like TikTok which will in return appeal to the huge teenage consumer base. The wide demographic can also be appealed using YouTube to post about the company and instruction/tutorials for the products. Market research: Stand-up paddleboard is also known as SUP, a popular sport activity that involves standing up on a board and using a paddle to make the way through the water. This sport requires using arms while standing or kneeling to propel the board forward. Thus, the market includes a variety of boards, which are classified based on weight, material, length, product, application (has a bunch of uses ranging from yoga to flat water touring to surfing), and price. So, there is something for everyone. The SUP boards have grown in popularity not only due to but also due to the fact that SUP boards are a technical combination of kayaking and surfing since they are lighter and wide enough hence allowing them to be used for multiple purposes as mentioned above. Market Trends - There is an increasing demand for inflatable SUP’s, this is partially due to its convenience and portability; inflatable ones are also not distinguishable from their hardboard counterparts and there is an increase in demand for brands that focus on sustainability, innovations in materials, manufacturing and design allow for more sustainable manufacturing processes. So, all in all the trends speak out for the growth of Surf 4 Joy. Other trends are: - Since there are a variety of applications- SUP yoga, fishing and recreational racing. The market attracts new customers and intrigues the interests of many. - Regions like the Asia Pacific region, and the middle east are starting to have increased interests in water sports, this combined with higher disposable incomes in said regions, increasing demand. Target market - is pretty simple and straight forward, individuals from beginners to experts, spanning across all age groups, this particular approach of Surf 4 Joy allows them to cater to a wide range of costumers and satisfy their loyal consumers and maintain a brand image. Area wise, Surf 4 Joy aims to mainly target in North America as It has the highest market share for paddle boating and SUP’s, moreover the region is perfectly placed for a product which involves water sports because of the huge coastlines and multiple water boards in and out of the region, while also having a suitable climate almost all year round. Surf 4 Joy will also focus of targeting southeast Asia using multiple distribution channel and online sources due to the fact that there are few major competitors in that region (niche market) even after the sudden increase in leisure sports like SUP/paddle boating. Market analysis - The market research conducted using online sources and recent articles show that the market for SUP boards a compound annual growth rate of 9.6% and have a huge market size of 1.6 billion This growth is fueled by rising disposable incomes, increased interest in outdoor activities along with a change in taste and preference of the target market and a growing awareness of environmental sustainability because of the use of re-cycled plastics for the production of the boards. Furthermore, the predicted market for the SUP boards is also very positive, data researched state that the market has been estimated to reach almost 500 million dollars by the start of 2025. All of these statistics contribute to the fact that the market growth for SUP boards is very strong, allowing for contributions to be made by smaller companies, such as Surf 4 Joy, but that does not overpower the fact that the market is very competitive and will most likely not always go in the favor of Surf 4 Joy. It will be very hard for Surf 4 Joy to make waves in the market as soon as it enters as the market is captured by big companies such as- Hurley, red paddle, BIC sport, Billabong, Naish international and many more, these companies all have a significant share in the market and have huge consumer bases, hence dominating the market. This all also goes to show that the market for SUP boards is somewhat of a monopolistic competition. Consumer analysis – SUP board enthusiasts have a diverse demographic, ranging from young adults seeking adventures to retirees prioritizing healthy activities. Segments include: -Fitness enthusiasts- Seeking low-impact, full-body workouts on the water. -Families- Attracted to the social and bonding aspects of group SUP activities. -Yoga and meditation practitioners- Utilizing SUPs for unique, water-based wellness experiences. -Eco-conscious consumers- Appreciating SUP 7's recycled plastic construction. Competitor analysis- Red Paddle, a key competitor in the SUP board market, has executed several notable marketing campaigns to promote their products. One of their successful strategies involved partnering with influential athletes and celebrities in the water sports industry to endorse their boards, leveraging their large social media followings to reach a wider audience. The estimated cost for such partnerships ranges from $10,000 to $20,000 per campaign, depending on the stature of the influencer. Another effective tactic employed by Red Paddle is the organization of demo events and workshops at popular beach destinations, allowing customers to test their boards firsthand and receive expert guidance from professional instructors. These events typically incur costs for venue rental, equipment setup, staffing, and promotional materials, totaling approximately $10,000 to $15,000 per event. Red Paddle also invests highly in online advertising, utilizing targeted ads on platforms like Facebook, Instagram, and Google to reach potential customers actively searching for SUP boards or related content. The estimated monthly budget for digital advertising campaigns ranges from $5,000 to $15,000, depending on the scope and objectives of each campaign. Additionally, Red Paddle offers exclusive promotions and discounts during peak seasons or special occasions, incentivizing customers to make a purchase. The cost of these promotions varies but typically amounts to $2,000 to $5,000 per campaign. The most recent campaign ran by red paddle: Just Add Air (2023): - Timescale: Spring-Summer season campaign. - Media: Website, social media (Instagram, Facebook), YouTube ads, influencer partnerships. - Message: Encourages people to get outdoors and experience the joy of SUP with Red Paddle Co. boards. - Cost: Estimated 20,000$-40,000$ considering influencer fees, ad spend, and content creation. - Effectiveness: Increased website traffic as per official reports, engagement and followers on social media increased likely leading to an increase in sales. Market research on price - Though the pricing strategies for all the competitors can’t be completely figured out, the average pricing of the product in the market can be used for the company’s marketing mix. SUP board prices vary widely depending on size, construction, features, and brand. Inflatable boards, popular for their portability, range from $300 to $1,000+, while rigid boards start at $500 and can exceed $3,000. This market research then allows us to understand the balance that Surf 4 Joy needs to go for between pricing and product quality to keep customers satisfied. Market research on promotion - Most of the competitors use the same promotional strategies, the main difference is the amount of money spent for the promotions, which usually means that higher the company spends the better the result is. Likewise, the media and means of communication is also pretty much the same between all the companies such as social media, word of mouth, videos and blog posts and websites. The main promotional strategy used are: 1) Digital marketing- which include the optimization and use of SEOs, social media announcements and campaigns and email/WhatsApp subscriptions. 2) Partnerships - partnerships with various entities allow the business to not only increase brand awareness but also the opportunity to reduce competition/reduce focus of consumers on the competitors, for instanceRed paddle has had multiple influencers for their video advertisement in return bringing attention towards the influencers and Red paddle, making it a kind of win-win situation. Partnerships can be made with places likeyoga/fitness centers or eco-conscious organizations for meetups/events. 3) Content marketing - Creating engaging blog posts, videos, and social media content highlighting SUP 7's benefits and unique features. These strategies can also be combined and used as per Surf 4 Joy’s choice and research, just like Red paddle made use of both ‘content marketing’ and ‘partnerships’ to make a video including influencer for their surf boards. Overall, by understanding these research insights, Surf 4 Joy can tailor a targeted and impactful marketing campaign for SUP 7 Swot analysis: StrengthsThe business model can be a hybrid, providing both retail and rental services, which then can also allow for partnerships with hotels and resorts and/or can run the rental by themselves. - attracts a lot of people since it is suitable for everyone and fun - Since the products can be used multiple times, it allows for the business to be cost effective as equipment is being used multiple times - Can take advantage of competitors not focusing on environmental stability Weaknesses - Seasonal demand Stand-up paddleboarding is a seasonal activity, and demand can change drastically depending on the weather. This can lead to difficulty in cash flow forecasting and managing revenue. - Weather Dependent: Stand-up paddleboarding is highly dependent on favorable weather conditions, such as calm waters and sunshine. Cancelled bookings due to weather can result in lost revenue and angry customers. - Environmental Concerns: stand-up paddleboarding can have an environmental impact, which may result in negative public opinions and potential regulations. This includes erosion, pollution, and disturbance of marine life. It is important for businesses to prioritize sustainability and educate customers on responsible practices. Opportunities - rapid growth since there is an increase in the need for water competitions due to changes in preferences and increase in the adaption of global trends among youngsters. - Surf 4 joy can make use of the market research and change their operations accordingly, for example – can run yoga/fitness classes due to increase in demand for such activities. - can also make collaborations with influencers to approach a broader consumer base Threats-Lack of skilled and experienced professionals may hinder the market. - Huge amount of new sup board brands are entering the market leading to an all-time high of competition in the market - Regulation and Legal Risks: Stand-up paddleboarding businesses may have to comply with state and federal regulations, obtain permits, and bear legal liability for any accidents or injuries during the rental or lesson periods. - Since there is very high competition in the market, the competitors which are huge can benefit from economies of scale. Pestle analysis: Political - Government regulations promoting environmental sustainability align perfectly with the brand's ecofriendly positioning, offering a boost to their marketing efforts. However, international trade presents challenges. Tariffs and trade policies can also impact the manufacturing costs and distribution channels, such as the recent tariffs on aluminum (used in SUP frames) from china have impacted productions costs for US brands, whereas with European brands, have benefitted from the ongoing trade agreements. This in all requires the brand to stay agile and adapt to shifting landscapes. Economic - The most common and obvious economic factor is the fact that economic downturns can lead to consumers being fiscally conservative, impacting a decrease in spending on recreational activities like stand-up paddleboarding. Moreover, economic downturns can also come with or without currency fluctuations which affect the importing costs of goods (which will highly disrupt Surf 4 Joy’s efficiency, as it operates in many countries, each with their own economies and trade agreements) and affect pricing strategies. Lastly, inflation can also cause a decrease in the demand of SUP boards as the product itself is price elastic and in a case where prices are increasing, consumers will focus on saving for necessary products. Social - The growing awareness of health and fitness benefits associated with paddleboarding creates a perfect situation for brand growth. Changing lifestyles favoring outdoor activities present exciting opportunities, while demographic shifts offer valuable understanding into evolving consumer preferences. Technological - Advancements in manufacturing technologies allow Surf 4 Joy to develop high-quality, sustainable products, setting them apart from the competition though the costing is always a problem. Digital platforms and e-commerce allow them to reach wider audiences and streamline sales, while also integrating cutting-edge features like GPS tracking can further enhance the user experience and improve their brand image. Legal - following environmental regulations regarding plastic use and recycling is crucial for Surf 4 Joy's sustainability claims, not being able to follow them would lead to serious consequences. Additionally, adhering to consumer protection laws and product safety standards ensures the quality and safety of their paddleboards, building trust and loyalty among customers. Environmental - Surf 4 Joy's commitment to using recycled plastics makes sense and works perfectly as there is a growing demand for eco-friendly products, giving them a competitive edge. To add on, ethical sourcing of materials and sustainable manufacturing practices not only benefit the environment but also once again increase the brand's reputation and appeal to environmentally conscious consumers allowing Surf 4 Joy to partner up with conservation organizations to further strengthen their eco-conscious image, making their claims backed by evidence and makes sure that their brand is a responsible and sustainable brand. Product Life Cycle: Introduction, SUP 7 launches across North America, with social media engagement and a lot of marketing strategies. Expected early demand widening the distribution. Growth, Initial success drives higher sales and revenue, leading to short burst of income and demand. Maturity, As competitors see the opportunity and launch similar products, squeezing SUP 7's profit margins ultimately, decreasing the sales of the product and hindering the perfect process. Decline, as SUP 7 experiences a loss in market share leading to sales almost coming to a halt, SUP 7 must adapt by offering new versions, expanding its audience, or partnering strategically to avoid losing market share or even facing a takeover. For instance, the product (SUP7) is gonna be at an introduction stage when released, in this stage there will be a steep increase in demand and a sudden increase in brand awareness. It’s going to be crucial for Sup 4 Joy to be very careful at this stage as any mistakes now will affect the future situation a lot. The introduction stage will also highly influence upcoming decisions such as promotional and pricing strategies for the next stage. Extension strategies: - Leverage influencers: Partner with surf clubs, pro surfers, and superstars to attract new customers. - Build a community: Create an online community platform connecting all surf industry businesses. - Target high-value customers: Focus marketing on consumers with rising disposable income seeking premium products. - Boost brand awareness: Implement video and Google ads and increase marketing budget for wider promotion. Marketing Mix Marketing message – the marketing message will be concise and related completely to the positive practices of Surf 4 Joy, relating to the environmental concerns. The message would also include information about the new product – SUP 7 which will be small yet enough for consumers to be attracted/intrigued by the product. The 7p’s: Product: SUP 7 is positioned as a portable, lightweight, and stable Stand-Up Paddle Board made from recycled plastics, offering durability, performance, and environmental sustainability. Its unique features cater to both beginner and experienced paddleboarders, providing ease of use across different water conditions. Price: Surf 4 Joy adopts a competitive pricing strategy for SUP 7, balancing quality and affordability to appeal to a broad spectrum of customers. The price point is set slightly below premium brands like Red Paddle, offering excellent value for money without compromising on product quality or performance. Additionally, seasonal promotions and discounts are implemented to stimulate sales and incentivize purchase. Though the pricing strategy for SUP 7 is planned to be competitive all round, this does not restrict Surf 4 Joy to make use of other numerous strategies such as premium and psychological pricing therefore, the introduction stage will make use of dynamic pricing to accommodate for other factors. Place: SUP 7 is available for purchase through Surf 4 Joy's website and physical stores located in Europe, Australia, and North America, providing international distribution to reach customers worldwide. The website offers a user-friendly interface with a chat function for potential buyers to seek advice and assistance from experienced staff, enhancing the shopping experience and facilitating informed purchase decisions. Promotion: Promotional strategies will include bundling, loyalty program, advertising on social media, using push notifications using apps or website, influencer, vouchers, and brochures being handed out at the store. In the introductory stages make use of aggressive strategies such as free trials. Example - 20% discount on 1000$ product. So, 2 -> cost per unit, 100 units 200$ total cost Physical Attributes: SUP 7 is designed with a focus on portability, lightweight construction, and stability, making it suitable for paddlers of all skill levels and water conditions. The use of recycled plastics reflects Surf 4 Joy's commitment to environmental sustainability, aligning with the values and preferences of eco-conscious consumers. People: Surf 4 Joy employs experienced staff at each store location who are knowledgeable about the product range and passionate about water sports. The website features a chat function where potential buyers can interact with customer service representatives in real-time to address any queries or concerns, providing personalized assistance and enhancing the overall shopping experience. Process: The purchasing process for SUP 7 is streamlined and convenient, whether customers choose to buy online through the website or visit physical stores. Secure payment options, drama-free returns, and great customer support ensure a smooth and satisfactory buying experience, fostering customer satisfaction and bring back customers. Justification: I have chosen to make use of competitive pricing as the first and main choice for SUP 7 as pricing for most of the market is competitive as consumers themselves have somewhat of a high average disposable income (most which enjoy such leisure sports) therefore, competitive pricing makes sure that competitors are undercut of their prices and the sales are directing towards the company itself. Moreover, the use of other pricing tools is important as well, for example – premium pricing can be used when special/custom orders are made, and psychological pricing can be used in retail stores to create a false impression of low prices. The use of dynamic pricing in the introductory stages in crucial as this would just be the beginning of a sale-period for Sup 4 Joy and concluding on one single pricing strategy simply based on market research and competitor’s pricing strategy would not justify the reason for why that particular strategy is choose, hence, dynamic pricing allows the company to smooth into the market and the working of the business, while also minimizing the possibilities of major mistakes or small mishaps. Budget plan and the costs: Strategy Cost Online marketing: Social media marketing manager 100$ per hours, so – 100*20*2 (6 months) - 4,000$ in total SEO (2 months) 4000 per month, so – 4000*2 -8,000$ in total Google and Instagram ads (4 months) Insta- 1.10$ cpc, 2000 clicks (estimate) So, in total – 2,200$ Google - Cost per click: $2 keywords: $60 Total clicks: 1000*2= $2,000 Pay for keywords: 60*100=$6,000 TikTok- influencer 200k-500k followers 5,000$ in total Email subscription system (bot) 45$ per month 270$ in total App development 15,000 Justification Since most of target market in gen z and millennials, the use of online marketing is very important, as most of the target spends their time online, hence using online marketing increase the chance of people running into the brand and letting themselves know of the products and services. Moreover, it is easier to reach a wider audience with digital marketing as it also works with the fact that Surf 4 Joy is an internationally providing business as well. Total cost online marketing = 42,470$ Offline marketing: Demo events and workshops 8,000$-15,000$ 10,000 in total Offline marketing will also allow me to convey Brochure distribution 15$ per piece 500 pieces 7,500$ in total Total for offline marketing = 17,500$ lastly, The choices made for marketing strategies are justified through the process of competitor analysis, as stated in the competitor analysis that most competitors make use of the same strategies just at different levels of costing, therefore, it makes absolute sense for Surf 4 Joys to also make use of almost the same marketing strategies since the company has relatively good amount of sum for the marketing budget. Total = 60,000$ Gantt chart Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 R&D Digital marketing Offline marketing Follow up Reliability and validity: Despite time constraints preventing primary research, the report includes data from, recent secondary data from credible sources. This thorough secondary research has reliable statistics and market analysis.
