West Coast Boarder
Airboardz®
Strategic Marketing Plan
Ryan Snelling
Cassie Smith
Ryan Galang
Plan Outline (Table of Content)
1. Executive Summary
2. Corporate Mission Statement
3. Situational Analysis
a. External Environment
i. Technology
ii. Economic
iii. Competitive
iv. Social
v. Regulatory
b. Internal Environment
c. SWOT table
4. Marketing and Product Objectives
5. Target Market
a. Description
b. Points of difference
c. Positioning statement
6. Strategic Marketing Plan
a. Product Strategy
i. Product/Service components
b. Pricing Strategy
i. Pricing factors
ii. Pricing objective
iii. Demand-oriented approach
iv. Special adjustments
v. Quarterly target revenue
c. Distribution Strategy
i. Type of marketing channel
ii. Specific location and rationale
d. Promotional Strategy
i. Advertising
ii. Personal selling
iii. Public relations
iv. Sales promotion
7. Evaluation and Control
8. Conclusion
1. Executive Summary
West Coast Boarder is a new, innovative and technology driven company that has a
passion for diversifying the world of extreme sports. With our first product launch,
Airboardz®, we are looking to establish ourselves as the brand of the future for winter
sports. Airboardz® is a snowboard that uses new air cushion technology that allows you
to hover over a surface creating the feeling of floating on air. Providing the rider
increased speed and manoeuvrability puts Airboardz® is in a category of its own. This
marketing plan is designed to give us a blueprint for marketing our new product launch.
We have included a complete market analysis, target market summaries, a SWOT
analysis, detailed objectives, strategic marketing plans, and other relevant discussions.
2. Corporate Business Statement
We strive to improve ones existing lifestyle and introduce new adventure by providing a
quality product for our quality customer.
3. Situation Analysis
a) External Environment
i. Technology
The technology of the Airboardz® consists of five major parts, the board, fan,
battery, bindings and switch.
●
Board – A sport board similar to a snowboard, which utilizes air cushion
technology on powdered snow. It will have a modified surface at the top of the
board, a contoured bottom, adjacent to the ground surface. The core of board
will be made of high-grade, lightweight aluminum and sheets of fibreglass and
plastic to overlap the core material. (Different designs will be provided later in
the development). A Life Time Warranty will also be provided for the board.
●
Fan – Mounted on top of the board will be a power source. Two high-powered
fans will be located in the inner cavity, between the top and bottom of the
board and facing downward towards the ground. The fans, compromising of an
air inlet and outlet, will create an air cushion between the bottom of the board
and the ground, snow. There will also be a Life Time Warranty of the fans.
●
Battery – Also known as the power source is located on top of the board. The
energy used in these rechargeable batteries is called a rechargeable energy
storage system that stores energy for delivery of electric energy. There will be
a two year warranty on them.
●
Bindings and switch – Both will be located on top of the board. The bindings
are used to strap the rider’s boots tightly onto the board, so the rider can use
their gravitational energy (weight) to control the Airboardz®. The switch will
be located at the center, for the rider to turn the board on or off.
ii. Economic
Economy is income, expenditures, and external sources that affect the cost of
running West Coast Boarder. The macroeconomic conditions that need to be taking
into consideration are Canada’s inflation, which it above the United States at around
1.4. By Canada having a high inflation rate at the moment, it is affecting most
Canadian retailers negatively because Canadians are going to the United States to
make big purchases. It would not have an affect on the Airboardz® sale because the
product is only distributed through out BC at all of Comor’s Lower mainland
location, including Whistler, and on Airboardz.com. Also Airboardz® prices will
be up to date, equal with the American prices. Canadian economy, focusing mainly
on Vancouver BC, is doing very well at the moment. It is mainly dominated by the
service industry (wikipedia.com). When West Coast Boarder was creating the
Airboardz®, it focused on the consumers need for value, and their desire to not
spend huge amounts of money on it. Our company also had to consider its target
markets gross income so that they can establish the price range of the product. The
average income for one person it around 25,000 (stats Canada) and more then 50%
of snowboarders HH income is 50,000+ annually (snowboarder.com). West Coast
Boarder would also have to consider a customers discretionary income because that
is going to be the money left over after taxes and food, which the consumer will
decide on how to spend it.
iii. Competitive
In 2000 there were 4.3 million people participating in snowboarding within
America (nssra.com) and there are now over 8 million snowboarders worldwide. As
skiing continues to lose participants, snowboarding has soared into an $800 million
dollar a year industry (powproductions.com). Transworld Snowboarding magazine
has called it “steroid like growth”. This evolution has stream-lined the
snowboarding industry into monopolistic competition, where a large number of
sellers compete with on another by offering customers similar or substitute products
(kerin et al., 2005). .
Direct Brand Threat
Burton (burton.com) sells everything from snowboards, boots and bindings to travel
bags, belts and apparel to our target market. They have a powerful international
retail and online presence. Promotion through media, international series of
snowboard competitions, rider sponsorships, tradeshows and the internet they are a
powerhouse in the snowboard industry. Burton offers over 30 different boards for 3
different styles, free ride, all-mountain freestyle and park with prices ranging from
$159.95 to $999.95. Burton is a direct threat due to similar defined target markets
and coinciding product purposes
-
Strengths
Experience: Burton has the longest history in snowboard market. It was
established in 1977 and has played a vital role in transitioning
snowboarding from a backyard hobby to a world-class sport.
Industry Leader: Burton dominates the snowboard industry worldwide,
controlling 40% of the Market (hoovers.com), with global headquarters in
Vermont and international offices in Austria and Japan. Extensive R&D
capabilities comprised of highly skilled personnel and well-equipped
manufacturing center.
Popularity: Through product quality and availability they have
established brand loyalty and brand equity. Burton supports a team of
many of the world’s best snowboarders who dominate all aspects of
snowboarding.
-
Weaknesses
Product Similarity: Burton snowboards have a similar use to that of the
Airboardz®, providing ability to manoeuvre down a snow covered slope.
On the contrary they DO NOT use air cushioned technology that allows
your board to hover above the snow allowing for increased speed and
maneuverability.
Diverse Brand Threat
Salomon (salomonski.com) has produced a vast range of revolutionary new
concepts in bindings, boots, skis and apparel for both alpine and Nordic skiing and
brought innovative solutions to footwear, apparel and equipment for snowboarding,
adventure racing, mountaineering, and many other sports. Snowboards price range
from $249.99 to $649.99. Salomon is a more diverse threat because their products
appeal to our entire target market from ski and snowboarders to active outdoors
enthusiasts and families.
-
Strengths
Market Share: Products sold in over 160 countries becoming a global
icon. Targets ski, snowboarders and active outdoor enthusiasts.
Reputation and Reliability: Over its 60 years history it is known for its
performance driven design and progression in mountain sports.
-
Weaknesses
Snowboards: Although Salomon produces a large number of
snowboards they are not known or viewed as a top manufacturer within
the snowboard community.
Research & Development: Do not use R&D capabilities towards
snowboard manufacturing department, thus do not have concepts to keep
up with Airboardz® air cushioned technology.
Product Similarity: Airboardz® fulfills same product purpose as a
Salomon snowboards and ads increase speed and manoeuvrability due to 2
inch air cushion above surface.
iv. Social (demographic and social)
External social environment is adapting our product to the expected change of
society’s values, use, demand and lifestyle.
●
Values
There are many snowboarders in the lower mainland, an average of 80% of kids
who practice winter sports decide to choose snowboarding. Canadian mountains
receive a great amount of snow, which results in powder. The two major troubles
that boarders have while snowboarding on powder is the huge out put effort, and
it’s easy to catch an edge of their board. The Airboardz® prevents this from
happening by having the board lifted 2 inches off the powder; giving it a smoother,
faster (because of less friction) and, more movable ride (which lessens the chance
of catching the boards’ edge.)
●
Use
There are three different styles types of snowboards Freestyle, Free ride (All
Mountain), and Alpine (Carving) Boards. The type of Snowboard someone chooses
to ride should match with to his or her particular style of riding. When it comes to
the Airboardz® it would fit the category of the free ride because it’s created to be
used in powder; for a smooth ride that uses less effort and can go faster.
●
The demand
It’s a fact that most regular boarders own an average of two snowboards, all
depending on their style. For example when someone goes in to a store to buy a
new snowboard they tend not to buy a similar board to what they already have. A
person tends to buy a board they don’t already own because they desired a board
for a different style.
External environment of the demographic characteristics, such as gender, age, level
of snowboarder, geographic location, and income:
●
Age
80.8% of snowboarders are under the age of 24; so we are focusing the majority of
is market on 12-24. The Airboardz® will also be marketed towards individuals up
to the age of 40 years old because of their inner kid.
●
Level of snowboarder
The level of boarder to use this product should be a frequent user, which means
they go up to the mountain and use it around 10 times a year, due to the cost of it
($799.99)
●
Geographic location
The geographic location that the Airboardz® is being focusing towards is Canada,
and mainly on the North West coastal region. We pick mainly the North West
coastal region because there are lots of mountains with a great amount of snow (ex.
Whistler, Seymour, Grouse, Big White, and so on.) Another main reason is because
of the hugely publicized 2010 winter Olympic Games, which are being held in
Vancouver Canada.
●
Income
The average income for one person it around 25,000 (and more then 50% of
snowboarders HH income is 50,000+ annually. Since the Airboardz® is a specialty
board the average HH income should be around 50-70,000+ annually. We also took
in to consideration that a majority of boarders are students and to afford this board
they would have to be depending off their parents or have a part time job, all while
living at home.
v. Regulatory
●
West Coast Boarder (company name) has been regulated and approved under the
Canadian Business Corporations Act. Our proposed name with related NUANS®
search was submitted to the director and has complied with all regulations under the
act
●
Airboardz® is a registered trade mark of West Coast Boarder under the trademarks act enforced by the Department of Justice Canada
b) Internal Environment
●
Strengths
-
Our marketing knowledge is very strong, enabling West Coast Boarder
Inc. to expose our name and product very well. A new product will also
provide new and exciting sports, activities, and events. It will also improve
sales and profits for Comor, where the Airboardz® is located. Through
networking and word-of-mouth, our contacts that are well known
companies will help our company get started.
-
The Airboardz® itself is a lightweight and very durable for smoother and
faster rides. Unlike snowboards, the Airboardz® will be above the snow
and will create less friction due to the air cushion technology.
●
Weaknesses:
-
Having a different company manufacture our product could potentially
slowdown our product and sales. Existing competition could also drive the
Airboardz® to a failure due to less interest for our product.
-
c) SWOT Table
PRODUCTS
Markets
Current
New
Current
New
Market Penetration
Airboardz® will use market penetration
once creating loyal customers with its
unique uni-sex board. Once that occurs
Airboardz® will then branch out with
designs focused towards both males and
females.
Product Development
Once our company succeeds in the
boarding market we would expand in to
clothing and accessories, such as goggles,
gloves, t-shirts, thermal wear, and so on.
Market Development
Once Airboardz® is satisfied with its
distribution in the North West region it
will then branch out toward to rest of
snowboard loving Canada, (such as
Quebec) and the states (such as Vermont)
Diversification
In the case of West Coast Boarders, we
decided that if we had a chance, we
would expand our company into the
energy drink market. We chose the
energy drink market because In 2001, in
the US, the energy drink market brought
in an estimated 8 million dollars per year,
in retail sales (wikipedia.com).
4. Marketing and Product Objectives
1. Create brand/product awareness and acceptance, measured by use of product in
media (television and movies) and sales in each quarter.
2. Build brand equity and brand loyalty through innovative technology, superior
design and product quality. Following a “customer-centric approach” by actively
engaging consumers will help distinguish our company
3. Establish sales and relationship between local mountains/resorts. Have
Airboardz® rental available through Whistler/Blackcomb resort, Cypress
mountain, Grouse mountain, and Mt.Seymour
4. Gain an increase market share to 5% within first year by generating sales revenue
across Canada and into the United States.
5. Target Market
a) Geographic, psychographic, benefits, and demographic segmentation.
●
We conducted a marketing survey by questioning prospected buyer throughout the
lower mainland and we determined snowboarders…
-
Own more then one board
-
listen to their own music, rather then the radio
-
sourced information when making a purchase decision via websites,
magazines, and catalogues
-
go snowboarding more than 10 times in a season
-
are active consumers in the sense they purchase new equipment or apparel
every season
-
They majority watch snowboarding videos on You-Tube, rather then
purchasing videos or watching TV
-
Buy snowboards from Comor, Boardroom, or on-line
●
Geographic
The target market of the Airboardz® is being focused mainly on the North West
coastal region, because there are lots of mountains with a great amount of snow and
the 2010 winter Olympic Games, which are being held in Vancouver Canada. The
density is urban (Vancouver) because of the large population and their access to
several mountains. The climate would have to be cold to produce the snow, which
the board is used on.
●
Psychographic
The personality and life style of the target user of the Airboardz® should be an
adventurous, athletic, and knowledgeable. Psychographics is based on the variables
that are associated with personality types or lifestyle: young and confident. People
who want to snowboard buy a board because they can or because they like the
scene and want to fit in or belong. Our target consumers are outdoor activity
enthusiasts. They Snowboard in winter; water sports, skateboard and bike etc. in
summer. Majority are internet savvy: use the internet & e-mail as source for
information on products. Download videos of favourite bands and movie trailers.
Heavily influenced by peer group, current styles, looks and trends in urban cities.
●
Demographic
The target market age is from 12- 40 years old. We chose 12years old because
80.8% of snowboarders are under the age of 24 and as old as 40 to bring out the
inner kid in everyone and also so that parents will buy the air board for their kids.
The gender we will mainly target is male, because less then 30% of snowboarders
are female. In result we will start with uni-sex board designs and then branch out in
to male and female board designs once becoming somewhat successful. The
average HH income is product is targeted at is 50-70,000+ annual HH incomes
because more then 50% of snowboarders HH income is 50,000+ annually. Also
majority of boarders are students and to afford a specialty board like the
Airboardz®, they would have to be depending off their parents or have a part time
job, all while living at home.
●
Benefit
Benefits sought would be a product that has quality and that includes; a board that’s
not going to easily snap, a fan that won’t break (has a life time warranty), and a
product that is usable. The Airboardz® is with quality for a built for a high user
that will go up 10 or more times a season.
b) Point of difference
West Coast Boarder created a new innovative product, called the Airboardz®. The
Airboardz® uses a unique air cushion technology, which is battery powers, to levitate 2
inches off the ground and to limit friction while boarding on powdered snow. There is no
other product like this out on the market today. The closest thing, on the market, to the
Airboardz® is a snowboard. A snowboard is a board used to ride down snow-covered
slopes. The board of a snowboard and an Airboardz® are both made of a base layer of
polyethylene material. Next adding graphite to the polyethylene pellets creates the base.
The board’s outer edge is made with metal, which protects the board from damage. The
core of snowboards can be made of wood, foam, honeycomb panels, fibreglass weaves,
or other composite materials. The Airboardz® core is made up of a honeycomb cores
because it is lightweight and strong. The main difference of the board of the Airboardz®
is that it is more the twice the thickness compared to the board of a snowboard. The
Airboardz needs a thick board so that will be able to protect the air fan. Overall there is
no other product that uses air cushion technology to levitate up to 300 pounds off the
ground.
c) Positioning statement
We’re planning on establishing a rental system through these popular mountains;
Whistler, Grouse, Seymour, and Cypress. The Airboardz® will be available exclusively
in Comor locations in the Lower Mainland, as well as online for Canadian citizens.
6. Strategic Marketing Plan
a) Product Strategy
i. Description of Product
●
The Airboardz® is an evolved snowboard that uses a combination of two air
fan, a modified snowboard platform, and air cushions, which are made out of
a innovative fabric that contain unique fibres that made it so the cushion is
indestructible. The Airboardz® structure is made so it can glide two inches
above snow, while holding a maximum capacity of 300 pounds. It is created
to be used on snow, for a smother, faster, easily moveable, and overall more
enjoyable ride.
●
The Airboardz® uses a unique air cushion technology, which is battery
powers (a rechargeable battery), to levitate of the ground and limit friction.
There are two air fans, located on the left and the right, that blow air through
air cushions at the bottom of the board. The power source it first started by
an on switch, located on the top surface of the board in the middle. The inner
cavity, which is located in between the top and bottom of the board’s
surface, holds the air fan. The air fan then receives air through the inlet, and
outputs through the outlet. There are air cushions connected to the inner
cavity of the bottom of the board. They are used as a cushiony surface and
are used to prevent unwanted debris and materials from harming the air fan.
ii. Detailed Services
●
We provide our customers with great services so that they can receive the
best quality product and ride that they disserve.
Services that our company provides for our customers are:
-
2 year warranty for the board
-
2 year warranty for the rechargeable battery
-
Life time warranty for the fans
-
Life time warranty for the air cushions
b) Pricing Strategy
i. Pricing factors considered
What we want to do with the Airboardz® price is to present a reasonable price for
consumers to buy even the younger targets. We don’t want it too expensive or too
cheap to make it seem like it is a toy. The set price is $799.99 CDN which includes
the whole board and bindings. It is set at a medium price and we may decrease it to
match our goals.
ii. Pricing objectives
West Coast Boarder’s objective is a maximizing current profit for a year. The target
return objective we want to reach is 25% on investment. We will also use volume as
a pricing objective. Selling the Airboardz® at the three Comor locations and having
it available for rental at local mountains. We hope to have most of our profit before
the ski/snowboard season begins because people involved in winter sports will
purchase our product then. As a new product on the market, we expect our profit to
increase later in the development because the Airboardz® will be exposed to many
more people who are interested. In the long run, we want our sales to cover our
producing and marketing costs so we will be successful as the product develops.
iii. Concepts from demand-oriented approach
We will set a prestige price for the Airboardz® which will be $799.99 CDN. This
price is also known as “odd-even pricing.” Our product will be high quality which
is why the price is at that but we will implement target pricing as well to determine
what the reasonable price should be.
iv. Special adjustments
If our product isn’t sold at our expected goal we will have special adjustments to
achieve our profit goals. We will provide a ski pass for consumers to any local
mountain which will be 30% off the season pass. Whether it is an early bird or a
regular price, they will get the discount.
v. Quarterly target revenue projections for the first 12 months
We hope to sell 1000 boards through our website, Comor locations, and selling to
local mountains (Possible additional retailers and winter resorts/mountains). Our
goal is to have a 25% profit for the first year.
TR = P x Q
= $799.99 x 1000
= $799,990
.25($799,990) = $199,997.50 quarterly revenue
c) Distribution
i. Marketing Channel
●
Multiple Channels/dual distribution
1) Direct Channel (producer to consumer) - airboardz.com allows direct
sales to consumers across Canada for (1) use at ski/snowboard resorts
rental shops (2) personal use.
2) Indirect Channel (producer, retailer, consumer) – West Coast Boarder
produces Airboardz® sold to our exclusive launch retailer, Comor.
Airboardz® are available to consumers through Comor’s three
locations: Kitsalano, Burnaby and Whistler.
ii. Locations and Rationale
Airboardz® will be launched October 20, 2008 and will be available
exclusively through Comor and airboardz.com. (Product will be available to
consumers across Canada by way of Internet sales).
-
Reason for launch date: Consumers are beginning to purchase snowboards
for upcoming season. Generate sales and product awareness through retail
hiatus over the holidays. Snowboards are still #1 Christmas present in
North America (bulgariaski.com)
●
Retail Channel- Comor (Kitsalano, Burnaby and Whistler)
-
Reason: Locations in both lower mainland and Whistler (grown to one of
Whistlers largest ski and snowboard retailers). Sell both skis and
snowboards which in turn attract a larger market. Has been in business for
30 years which has created customer loyalty.
●
Electronic Channel- AirBoardz.com
-
Reason: Create brand/product awareness and belief through product
descriptions and demonstration. Initiates the ability for greater market
share via direct sales Canada wide
●
After establishing rental services through local resorts and generating a
market share in retail sales we will be looking to expand across Canada and
into the US. Airboardz® will be sold directly by retailers throughout BC,
Alberta, Quebec, and Washington. Also looking to generate more sales to
winter ski/snowboard resort which will provide rental opportunities across
these provinces and state.
d) Promotional strategy
i. Advertising
●
The Airboardz® will have pictures and articles in popular magazines such
as Transworld Snowboarding, SNOWBOARD magazine, Snowboard
Canada. Billboards will be placed at all Comor and mountain locations with
banners saying “New product!” We will have endorsements for professional
riders and celebrities. The board will also be the main product or item for
the MTV Awards. Warner Brother Movies will get the chance to use the
board in their movies.
●
We will have our own website, www.airboardz.com, which is a direct
selling site for Canadians. Such features include FAQ, product description
and demonstrations. At BC Ski/Snow Tradeshows and The TELUS Snow
Show, the Airboardz® will be present to expose itself to possible costumers
i. Personal Selling
●
We will inform the retail representatives about the Airboardz® and hold
trial events at local mountains to expose the knowledge of our product and
on-site sales.
●
Manufacture promotion to sales representatives of Comor – free day pass to
any of the four local mountains (Whistler, Seymour, Cypress, Grouse) or
$30 cash for first 100 boards sold.
iii. Public Relations
●
You-Tube clip will be posted of various Airboardz® demonstrations to gain
product interest and awareness. We will contact local newspaper and new
station to use as a form of free publicity. Generate publicity through Popular
Science Magazine, TIMES magazine, Vancouver Sun and The Province by
offering a free product for critique and review.
iv. Sales Promotion
●
One free Airboardz® will be offered for the first customer to enter one of
the three Comor locations on October 20, 2008.
●
With every rental of an Airboardz® (Whistler, Cypress, Grouse, Seymour)
you will be enter to win a free Airboardz® and a seasons pass to the
mountain (null and void if rental service not available).
●
If actual sales do not meet are company’s projected sales we will be
offering addition promotions: 50% off season pass to any local mountain or
$100 rebate with purchase of Airboardz®.
7. Evaluation and Control
Tracking Results
●
We will graphically and numerically compare our total sales compared to
our projected sales each month (compared weekly for first two month)
●
Revenue and expenses will be monitored for performance monthly,
quarterly, and annual
●
Customer satisfaction reports will be conducted through local mountains
rental staff and through West Coast Boarder employees at product
demonstrations
●
Monitor and track website visits
Budget/ Actual Expenditures
The following area of the marketing plan will be track by comparing the budget to
actual expenditures upon completion or monthly
●
Retail Staff Training seminars
Budget: $500
●
Knowledge booklet
Budget: $1,000
●
Manufacture sales promotion
Budget: $5000
●
Employees
Budget: $12,500/month
●
Manufacturing
Budget: $200,000
●
Web Development
Budget: $7,500
●
Total Advertising
Budget: $100,000
●
Head office rental space
Budget: $2,500/month
●
Total Expenses
Budget: $500,000 (first year)
Methods of Adjustment
●
$50,000 extra advertising funds available
●
Promotional offers in connection with rentals of product (free day pass with
rental of Airboardz®)
●
Room for price adjustments
●
Offer product sales through additional retailers across British Columbia
●
Additional product demonstration (letting consumer try to product)
8. Conclusion
With this strategic marketing plan, West Coast Boarder is striving to implement itself as
the leading innovative and technology driving company within the snowboard industry.
Airboardz®, in a way, is a product in its own category, providing new extreme adventure
for any outdoor activity enthusiast. Once establishing our brand, creating revenue, and
gaining market share we will be looking to expand our business with new products and
new markets. Nonetheless, West Coast Boarder is still a dark horse in a competitive
business. By a planned strategy and a cutting edge product like Airboardz®, we are
anticipating building consumer loyalty and confidence becoming a powerhouse in one of
the fastest growing industries.