Inline Skating

Inline Skating food merchandising Plan Pegasus Sports This sample trade plan was created with merchandising Plan Pro softw ar. Plan Outline executive director compend Situation let online o Market Summary ? Market Needs ? Market Tr eat ups ? Market Growth o SWOT compend ? Strengths ? Weaknesses ? Opportunities ? Threats o Competition o Product Offering o Keys to victor o Critical Issues Marketing Strategy Financials Controls Executive Summary Pegasus Sports supranational is a start-up after grocery inline skate accessory manufacturer.In addition to the after commercialise harvest-homes, Pegasus is developing SkateTours, a help that takes clients out, in conjunction with a local glide shop, and provides them with an afternoon of skate using inline skates and some of Pegasus other accessories such as SkateSails. The after trade skate accessory commercialize has been largely ignored. While in that location atomic number 18 some(prenominal) major manufacturers of the skates themselves, the accessory market has non been hailed. This provides Pegasus with an extraordinary opportunity for market development.Skating is a booming bluster. Currently most of the skate is recreational. in that respect are however a growing number of con leavenations, twain squad orientated such as skate hockey as substanti solelyy as individual competitions such as speed skate racing. Pegasus depart work to grow these markets as well as develop the skate transummercateration market, a more utilitarian use of skating. several(prenominal) of Pegasus presently developed products hold back unmistakables pending and local market research indicates that thither is great demand for these products.Pegasus go away achieve fast, significant market incursion that volition be achieved by means of a solid business model, presbyopic range planning, and a strong management police squad that exit qualified to execute on this exciting opportunity. The three princ ipals on the management team have over 30 years of combined personal and exertion experience. This extensive experience provides Pegasus with the empirical information as well as the passion to provide the skating market with much compulsory aftermarket products.Pegasus testament sell their products initi completelyy through their website. This Dell direct to the consumer approach leave behind go away Pegasus to achieve higher margins and mention a close alliance with the customers which is essential for producing products that have a true market demand. By the end of the year, Pegasus exit have developed relationships with varied skate shops and will set out to sell some of their products through the use of retailers. pic gross gross tax herald 2003 2004 2005 gross gross gross revenue Recreational $455,740 $598,877 $687,765 Competitive $72,918 $95,820 $110,042 enumerate Sales $528,658 $694,697 $797,807 Direct Cost of Sales 2003 2004 2005 Recreation al $82,033 $107,798 $123,798 Competitive $13,125 $17,248 $19,808 Subtotal Direct Cost of Sales $95,159 $125,046 $143,605 Situation synopsis Pegasus is entering their first year of operation. The products have been well received and marketing will be key to develop brand and product ken as well as grow the customer base. Pegasus International offers some(prenominal)(prenominal) different aftermarket skating accessories, serving the growing inline skating industry. Market Summary Pegasus posesses good information about the market and k this instants a great view about the common attri exactlyes of the most prized customer. This information will be leveraged to wagerer understand who is served, their specific needs, and how Pegasus can better communicate with them. pic pic pic Market Analysis 2003 2004 2005 2006 2007 Potential clients Growth CAGR Recreational 10% 19,142,50021,056,75023,162,42525,478,66828,026,53510. 00% Fitness 15% 6,820,000 7,843,000 9,019,450 10 ,372,36811,928,22315. 00% repair 10% 387,500 426,250 468,875 515,763 567,339 10. 00% good 11. 36% 26,350,00029,326,00032,650,75036,366,79940,522,09711. 36% Market Needs Pegasus is providing the skating community with a wide range of accessories for all variations of skating.Pegasus anticipates to fulfill the avocation benefits that are important to their customers Quality craftsmanship The customers work hard for the gold and do not enjoy spending it on disposable products that besides work for a year or two. Well thought out designs The skating market has not been tracked by well thought out products that serve skaters needs. Pegasus industry experience and personal dedication to the sport will provide Pegasus with the needed information to produce insightfully designed products. Customer return Exemplary service is required to build a sustainable business that has a loyal customer base. Market TrendsPegasus will recognise themselves by marketing products not previo usly available to skaters. The emphasis in the past has been to sell skates and very few replacement parts. The number of skaters is not restricted to any maven single country, continent, or age group, so there is a world market. Pegasus has products for virtually every group of skaters. The quick growing segment of this sport is the fitness skater. at that placefore, the marketing is being direct to service this group. BladeBoots will enable them to enter establishments without having to remove their skates. BladeBoots will be aimed at the recreational skater, the largest segment however SkateAids are great for everyone.There is one more way the sport of skating will grow, and that is through SkateSailing. This sport is primarily for the medium to advanced skater. The growth potential for this sport is tremendous. The sails Pegasus has manufactured so far have ended up in Europe. The same thing happened with windsurfing. It started out here in Santa Monica but did not take off u ntil it had already grown big in Europe. much and more groups are getting together on skate excursions in cities all over the world. For example, San Francisco has night group skating that numbers in the hundreds of people. The market trends are showing continued growth in all directions of skating. pic pic Market GrowthWith the price of skates going down due to competition by so many skate companies, the market has had steady growth throughout the world, with 22. 5 trillion in 1999 to over 31 million in 2002. The growth statistics for 2003 are estimated to be over 35 million. much and more people are dis handleing, and in many cases rediscovering, the health benefits and play of skating. pic pic SWOT Analysis The followers SWOT depth psychology captures the key strengths and weaknesses in spite of appearance the company, and describes the opportunities and threats facing Pegasus. Strengths In-depth industry experience and insight. Creative, affairal product designers. The use of a highly efficient, flexible business model utilizing direct customer sales and distribution. Weaknesses The reliance of outside capital necessary to grow the business. A overleap of retailers who can work directly face to face with the customer to father brand and product awareness. The difficulty to developing brand awareness as a start-up company. Opportunities Participation within a growing industry. Decreased product costs through scales of economy. The ability to leverage other industry participants marketing efforts to help grow the general market. Threats Future/ potential competition from an already open market participants. A slump in the economy that could have a negative effect on peoples spending discretionary income on fitness/ recreational products. The release of a study that calls into question the caoutchouc of skating or the inability to prevent major skating bring forth traumas. Competition Pegasus Sports International is forming its own marke t. While there are a few companies that do make sails and foils that a few skaters are using, Pegasus is the plainly one that is truly designed for and by skaters. The few competitors sails are not designed for skating, but for windsurfing or for skateboards. In the case of foils, storage and carrying are not practical. There are different indirect competitors who are manufactures of the positive skates. After many years in the market, these companies have yet to break down direct competitors by manufacturing accessories for the skates that they manufacture. Product OfferingPegasus Sports International now offers several products The first product that has been developed is BladeBoots, a cover for the wheels and frame of in-line skates, which allow skaters to enter places that normally would not allow them in. BladeBoots come with a puny pouch and belt which converts to a well-designed skate carrier. The second product is SkateSails. These sails are specifically designed for u se while skating. Feedback that Pegasus has received from skaters indicates this could become a very popular sport. Trade marking this product is currently in progress. The third product will be referred to as SkateAid and be in production by December. different ideas for products are under development, but Pegasus must hold back until they can protect themselves through pending patent applications. Keys to Success The keys to success are simply designing and producing products that meet market demand. Additionally, Pegasus must ensure total customer satisfaction. If these keys to success are achieved, Pegasus will become a profitable, sustainable company. Critical Issues Pegasus is still in the regretful stages as a start-up business. The critical issues are Establish themselves as the phase modulation skating accessory company. Pursue controlled growth that dictates that payroll expenses will neer exceed the revenue base. This will help protect against recessions. Constantl y reminder customer satisfaction, ensuring that the growth strategy will never compromise service and satisfaction levels. Marketing Strategy The key to the marketing strategy is concentrate on the speed, health and fitness, and recreational skaters. Pegasus can cover about 80% of the skating market since they produce products geared towards from each one segment. Pegasus is able to address all of the different segments within the market because although each segment is intelligible in terms of its users and equipment, Pegasus products are reusable to all of the different segments. flush Pegasus Sports Internationals mission is to provide the customer with the finest skating accessories available. We exist to attract and maintain customers.With a strict adherence to this maxim, success will be ensured. Our run and products will exceed the expectations of the customers. Marketing Objectives admit positive, strong growth each quarter (not withstanding seasonal sales patterns) . Achieve a steady affix in market penetration. Decrease customer acquisition costs by 1. 5% a quarter. Financial Objectives Increase the profit margin by 1% per quarter through efficiency and scale of economy gains. Maintain a significant research and development budget (as a theatrical role relative to sales) to spur future product developments. A double to trey digit growth rate for the first three years. Target MarketsWith a world skating market of over 31 million and steadily growing (statistics released by the Sporting Goods Manufacturers Association), the niche has been created. Pegasus aim is to expand this market by promoting SkateSailing, a new sport which is popular at both Santa Monica and Venice Beach in California. The Sporting Goods Manufacturers Association survey indicates that skating now has more participation than football, softball, skiing, and snowboarding combined. The breakdown of participation of skating is as follows 1+% speed (growing), 8% hockey (declining), 7% extreme/aggressive (declining), 22% fitness (nearly seven millionthe fastest growing), and 61% recreational (first-timers).Our products are targeting the fitness and recreational groups, as they are the fastest growing. These groups are gear themselves towards health and fitness, and combined, they can easily grow to 85% (or 26 million) of the market in the next five years. Positioning Pegasus will position themselves as the phase modulation aftermarket skating accessory company. This positioning will be achieved by leveraging their competitive edge industry experience and passion. Pegasus is a skating company formed by skaters for skaters. They are able to use their coarse experience and personal passion for the sport to develop innovative, useful accessories for a broad range of skaters. StrategiesThe single objective is to position Pegasus as the premier skating accessory manufacturer, serving both the domestic market as well as international market. The market ing strategy will seek to first create customer awareness concerning the offered products and services and develop the customer base. The message that Pegasus will seek to communicate is that they offer the best-designed, most useful skating accessories. This message will be communicated through a mix of methods. The first will the use of their robust website. As well as a rich source of product information, the site will as well be used for purchasing. A lot of time and money will be invested into the site to provide the customer with the perception of total professionalism and emolument for Pegasus products and services.The second method will be advertisements placed in numerous industry magazines. The skating industry is hold uped by several different glossy magazines designed to promote the industry as a whole. Additionally, there are a couple of smaller periodicals that serve the smaller market segments within the skating industry. The last method of communication is the us e of printed sales literature. The two previously mentioned marketing methods will create demand for the sales literature that will be sent out to customers. The cost of the sales literature will be fairly minimal as it will use the already compiled sales information from the website. Marketing MixPegasus marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing This will be based on a per product retail price. Distribution ab initio Pegasus will use a direct to the consume distribution model. oer time Pegasus will use retailers as well. Advertising and Promotion Several different methods will be used for the advertising effort. Customer Service Pegasus will strive to achieve benchmarked levels of customer care. Marketing Research Pegasus is doomed with good fortune of being located in the center of the skating world, Venice, CA. Pegasus will be able to leverage this opportune location by working w ith many of the different skaters that live in the area.Pegasus was able to test out all of their products, not only with the principals who are accomplished skaters, but also the many other dedicated and newbie users located in Venice. The extensive product testing by a wide signifier of users provided Pegasus with valuable product feedback and has led to several design improvements. Financials This section will offer the financial overview of Pegasus as it related to the marketing activities. Pegasus will address Break-even Analysis, sales estimates, expense forecast, and indicate how these activities link to the marketing strategy. Break-even Analysis The break-even analysis indicates that $7,760 will be required in monthly sales revenue to reach the break-even point. pic pic pic Break-even Analysis Monthly gross Break-even $6,372 Assumptions Average Percent changeable Cost 18% Estimated Monthly Fixed Cost $6,363 Sales Forecast Pegasus feels that the sales forecast ing is conservative.Pegasus will steadily increase sales as the advertising budget allows. satisfy refer to the Sales Forecast Chart. Please note that while in the market segmentation section all of the potential customers have been broken down into separate groups, for the sales forecasts, the chemical group has been changed Recreational and Competitive. By reducing the number of categories it allows the reader to quickly get laid information, making the chart more functional. pic pic Expense Forecast The expense forecast will be used as a tool to stop the department in target and provide indicators when corrections / modifications are needed for the proper implementation of the marketing plan. pic pic pic Marketing Expense cipher 2003 2004 2005 Website $25,000 $8,000 $10,000 Advertisements $8,050 $15,000 $20,000 Other $1,725 $2,000 $3,000 Total Sales and Marketing Expenses $34,775 $25,000 $33,000 Percent of Sales 6. 58% 3. 60% 4. 14% Controls The purpose of Pegas us marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance Revenue monthly and annual. Expenses monthly and annual. Customer satisfaction. New product development. Implementation The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget. pic Milestones Advertising suck in Date arrest Date compute Manager incision Marketing plan utmost 1/1/2003 2/1/2003 $0 Stan Marketing Webiste finale 1/1/2003 3/15/2003 $20,400 outside firm Marketing Advertising campaign 1 1/1/2003 6/30/2003 $3,500 Stan Marketing Advertising campaign 2 3/1/1999 12/30/2003 $4,550 Stan Marketing Development of the retail channel1/1/2003 11/30/2003 $0 Stan Marketing ready me 1/1/2003 1/15/2003 $0 first principle plane section telephone me 1/1/2003 1/15/2003 $0 first principle plane section pay heed me 1/1/2003 1/15/2003 $0 rudiment Department Name me 1/1/2003 1 /15/2003 $0 ABC Department Other 1/1/2003 1/15/2003 $0 ABC Department Total Advertising figure $28,450 PR take off Date End Date Budget Manager Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Other 1/1/2006 1/15/2006 $0 ABC Department Total PR Budget $0 Direct Marketing Start Date End Date Budget Manager Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Other 1/1/2006 1/15/2006 $0 ABC Department Total Direct Marketing Budget $0 Web Development Start Date End Date Budget Manager Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Other 1/1/2006 1/15/2006 $0 ABC Department Total Web Development Budget $0 Other Start Date End Date Budget Manager Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Name me 1/1/2006 1/15/2006 $0 ABC Department Other 1/1/2006 1/15/2006 $0 ABC Department Total Other Budget $0 Totals $28,450 Contingency Planning Difficulties and Risks Problems generating visibility, a function of being a internet-based start-up organization. An entry into the market by an already established market competitor. Worst Case Risks Include Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment or intellectual capital to cover liabilities.