Montana Whitewater Adventures - Montana State University Billings

Marketing Plan
Created by:
John Dickerson
Kristen Rehbein
Kari Bostick
Mission Statement
The family at Montana Whitewater Adventures is committed to
providing the ultimate rafting adventures in the most scenic,
wild rivers of Montana. We are dedicated to providing
outstanding customer service. Our customers will be treated
with a once in a lifetime adventure. Combined we have over 75
years of rafting experience and are committed to safely getting
our customers home with the memories to last a life time.
With customer service being of utmost priority, we extend our
offerings to patrons by partnering with other local business to
create a once in a life time adventure. We work with zip-line
Montana and Quinn’s Hot Springs to bundle our trips.
On average 500,000 thousand people visit Missoula each year. With a
population over 155,000 in Missoula and the surrounding community we
have ample opportunity in this market. Our survey results determined that
32% of people polled, were eager to raft the beautiful rivers surrounding
Missoula. The total market potential is well over 200,000 people.
Our objectives are:
•To create a fun, action packed experience for our customers.
•Provide outstanding customer service and grow our customer base by
word of mouth referrals.
•Sell 12,000 raft trips, at a rate of $150.00 per person.
•Utilize connections within the community, by booking group trips.
Group trips should comprise at least 10% of total bookings.
• Family uses connections with
local business, summer camps
and schools for group trips
• Expand top-selling trips more
days a week
• Provide exciting, affordable
family mini-vacations during
hard economic times
•Based in tourist area
• Newly purchased cutting edge, finest
equipment available today
• Starting massive advertising campaign
with a committed $30,000.00
• Over 75 years of rafting experience
• Differentiation from competition by
partnering with other local business to
create a once in a life time adventure
• Lower operating costs with family owned
storage facility
Higher price point
• New to market
• Competing with over 20 other
rafting companies
• Environmental – depend on the
weather, natural disasters (fire,
flooding, etc.)
•Permit availability
•Competition prices are lower
•Competition with established and
loyal clientele
Potential Market Survey
The following questions were asked at Five locations in Missoula Montana:
Have you ever rafted near Missoula, MT?
Do you intend on rafting during the 2013 season near Missoula, MT?
16/50 people said they intend on rafting in the 2013 season you. (32%)
Did you raft during the 2012 season near Missoula, MT?
38/50 people said they had rafted near Missoula. (76%)
12/50 people said they rafted last season. (24%)
Would you be interested in rafting the rivers near Missoula, MT?
said they were interesting in rafting near Missoula MT. (42%)
Surveyed 50 people:
10 at Wal-Mart
10 at Worden’s Market
10 at U of M – University Center
10 at AT&T
10 at Southgate Mall
Survey conducted by John Dickerson
21/50 people
Population Statistics
and POTENTIAL Market Share
Missoula County Population: 110,138
Ravalli County Population: 40,450
Mineral County Population: 4,593
10 Million Tourist per year through Montana. On average 500,000 people travel to
Missoula each year.
Total population: 655,181
655,181 total population / 32% of population that intends on rafting
= 209,658 total market potential
209,658 market potential / 12% objective market share for Missoula Whitewater
= 25,159 customers in our market share.
Running at capacity, we have 10 rafts holding 8 people per raft
= 80 people/day
80 people per day x 5 months of the season
= 12,000 people we have to take rafting to meet the budget
Resident Market - 140,000 people.
Renting rafting rental equipment
Large student population ( 15,600) at
University of Montana. Offer students
end of school year rates.
Business Market –thousands of area
Tourism Market - one million visitors
Feature articles in the Montana Magazine,
Outside Missoula and Montana
Outdoors. Combined the magazines have
over 150,000 subscribers.
Flyer campaign to local businesses in the Affiliate Businesses-work with two large
existing organizations with large client
Missoula and surrounding county
Offer group rates. As the number in
your party increases, the rate decreases.
Pamphlets will be on hand at Missoula Zip
Lining and Quinn’s Hot Springs.
Brand Positioning
Experience the excitement with Montana Whitewater
Adventures. Come play with us!
Providing safe, unforgettable experiences, with over 75
years of rafting experience.
Decision Making Process
Identify the Problem
• Consumer needs to experience adventure on Montana’s Rivers.
Gather Information
• Consumers will gather information via word of mouth, yellow pages internet and newspapers.
Evaluate Alternatives
Consumer alternatives are:
 Other white water rafting companies
 Other adventure companies
 No adventures
Make Decision
• Consumers will choose Montana Whitewater Adventures because of the diversity of our product. We
are family owned and operated invested in the Missoula economy.
Evaluate Decision
• Consumers will know they chose the right product because of the personal safe adventure we take
them on. The quality of the service will create positive word of mouth thus increasing repeat business.
Means End Chain
Pay too much
Less money for
other things
Feeling of Guilt
Worth the
Valuable Family
Pay for Rafting
• Large student population , offering students end of school year rates.
• Resident Market consists of 140,000 people, offering rental rafting equipment.
• Capitalize on the tourism market by featuring articles in the Montana Magazine,
Outside Missoula and Montana Outdoors. Combined these magazines reach over
150,000 subscribers.
• Flyer campaign to area businesses in Missoula and surrounding areas to solicit
group trips as team building trips.
• Offer group rates; as the number in your party increases, the rate decreases.
• Work with affiliate businesses to reach out to their large client base.
Pamphlets will be on hand at Missoula Zip Lining and Quinn’s Hot Springs.
Product and PLC
• Product Life Cycle – Montana Whitewater Adventures is
entering a market in the mature stage of the Product Life
Cycle. There is strong competition in the area with companies
attempting to position their strategies to develop a competitive
• Product:
Brand positioning statement – Montana Whitewater
Adventures provides a unique exhilarating rafting
experience by utilizing our knowledge of local rivers to ensure
clients have a memorable day.
Perceptual Map
Showing Four Water Recreation Options
Guided Rafting
High on Safety
High on Social
Low on Scheduling Flexibility
High on Equipment Quality
Independent Rafting
Safety depending highly on experience
High on Social
High on Freedom of Scheduling
Low on Equipment Availability (own or
Guided Kayaking
High on Safety
Moderate on Social
Low on Scheduling Flexibility
High on Equipment Quality
Independent Kayaking
High on freedom of schedule
Moderate on Social
Safety depending highly on experience
Low on Equipment Availability (own
or rent)
• Convenient location in Missoula, MT. Clients are then bussed to launching sites.
• Rafting equipment stored at business location
• Administrative activities conducted at business location
• Website Accessibility
• Easy to navigate
• Scheduling and contact information
• Guide information including experience and safety qualifications
• Channels of Distribution
• Direct
• Collaboration with Quinn’s Hot Springs Resort and Montana Zip Lining
• Launching sits at Montana Fish Wildlife and Parks designated fishing access sites.
• Commercial permit required
• No maintenance costs
• Increased exposure to public
Initial Investment $250,000.00
Operating Costs
Equipment Costs
10 Rafts at $3,975 each; total cost $39,750
70 Paddles at $130 each; total cost $9,100
100 Helmets at $50 each; total cost $5,000
100 Life Jackets at $110 each; total cost $11,000
1 Bus providing transportation; total cost $7,000
Total Equipment Costs $71,850
Marketing Costs
Radio, television and magazine advertising campaign
• Advertisement development budget $15,000
• Purchase of Ad time budget $ 10,000
Pamphlet and Flyer Disbursement
• Delivery fees budget $5,000
Total Marketing Budget $30,000.00
Operating Costs
Gasoline per month $1,400
• $3.75 per gallon factoring 350 gallons per week
Salary per month $8,000
• $10.00 per hour for 8 part time employees
Insurance per month
• Includes auto, equipment, and liability insurance
Permit Costs per month $200
Total Annual Operating Costs $53,000
Cost of trip per person $150/weekend rate
• Must book 75 people each weekend
Cost of trip per person $120/weekday rate
• Must book 30 per week
Cost of group trips more than 8 people $100
• Must book 10 per week
Total Income Annually $457,000
Final Remarks
We will focus on providing the best
customer service in the industry by
holding ourselves to the highest standards
and conducting business with integrity
and pride, while staying within our
In time, Montana Whitewater Adventures
will be the best rafting company is Western
Chet Crouser, Fishing Access Manager
Montana Fish Wildlife and Parks
Resources Continued
Cost Analysis