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com Brand Strategy RAJ Manufacturing, LLC
Concordia University, Irvine May, 2010
Candice Brown Aaron Castaneda Kipley Pereles Andrea Pridham
Executive Summary.............................................................................................................3 Situation Analysis................................................................................................................4 Target Market Analysis........................................................................................................7 Marketing Objectives.........................................................................................................10 Marketing Strategies..........................................................................................................10 Implementation Plan..........................................................................................................21 Because the swimsuit season is already ramping up for this year, the implementation timeline for many of these marketing programs is relatively short. Some may be implemented as a small-scale test this year and ramp up to a full-blown campaign next season. It is recommended that each program have a project lead to manage the implementation. The following timeline outlines the implementation schedule: ............21 ...........................................................................................................................................21 Financial Projections..........................................................................................................22 ............................................................................................................................................22 ............................................................................................................................................23 ............................................................................................................................................24 Appendix............................................................................................................................25 Brand Model A) Creative Brief B) Press Release C) Survey Results D) Travel Industry Statistics
As a new venture, Swimspot is presented with a challenge to develop the right blend of operational and strategic imperatives to successfully enter the online swimwear market. These strategic imperatives serve as a framework for identifying strategies that will allow Swimspot to capitalize on market opportunities and increase its website traffic and conversion rate. The purpose of this document is to recommend a marketing approach that includes the right blend of market development activities to successfully secure market traction and win customers. These recommended activities include partnership programs, advertising, call to action incentives and website enhancements. It includes the best combination of strategies and tactics to enable Swimspot to grow with minimum investment generating maximum impact and results as possible.
Organizational Background Founded in 1967 by Raj & Marta Bhathal, RAJ Manufacturing is swimwear’s leading house of fashion in Orange County. RAJ Manufacturing is also one of the only vertically integrated manufacturers of premium women’s swimwear in the US. Headquartered in Tustin, California, RAJ employs a staff of 400 at its 130,000 square foot facility, which houses design, production, distribution and warehousing operations. One of the main competitive advantages RAJ has is its tight inventory control and short lead times. By producing locally, RAJ has lead times of between 10-60 days versus 4 months if suits were being manufactured in China. RAJ Manufacturing continues to be family owned and operated and is now run by siblings and co-Presidents Alex Bhathal and Lisa Vogel. Products RAJ Manufacturing creates swimsuits for a number of different brands which are either under license or directly owned by RAJ Manufacturing. Products are classified into three separate brand tiers: luxury, contemporary missy, and young contemporary. The luxury brands include swimsuit products from Luxe by Lisa Vogel, Ella Moss Isla, St. John, and Splendid. The contemporary missy brands include Athena Pick Your Fit, Tommy Hilfiger, and Next by Athena. The young contemporary brands include Guess, Reef, and Hurley. RAJ Manufacturing, through each of their divisions, has entry into virtually all high-end segments of the swimwear market. Financial and Non-Financial Results RAJ Manufacturing by all accounts is a stable, growing company. In 2008 RAJ
expanded its facility in Tustin to accommodate new business and sales growth. In addition, RAJ introduced a new line of swimwear in 2008, Luxe by Lisa Vogel. Historically, RAJ Manufacturing has consistently delivered excellent results. Over each 4
of the last 3 years RAJ has grown an average of 29.2% and has projected sales growth of 15-10% over the next three years. Channels RAJ Manufacturing is a vertically integrated swimsuit manufacturer. They are involved in every step of the process from design, to pattern making, to cutting and sewing, to distribution. This business model has been very successful for RAJ, and led them to the decision to launch their online direct to consumer website, www.swimspot.com. Their goal for this website is to capture a portion of the retail income. international distributors, catalogs, and online retailers. Retailers include high-end department stores such as Neiman Marcus and Bloomingdale’s, mid-range department stores such as Macy’s, as well as swim specialty stores and resorts like Diane’s Beachwear, Tommy Hilfiger, Guess, and the Four Seasons Resorts. Swimsuits are also distributed globally to locations in the United States, This Canada, Mexico, South America, Europe, Asia, Australia, South Africa, and Dubai. Swimspot.com will add their own online distribution site to the current mix. channel has the potential to expand their market reach and sales dramatically. SWOT Analysis Strengths One of the most significant strengths of RAJ Manufacturing is their vertical integration. This business model allows them to manufacture and deliver goods more quickly than most competitors and also to understand and control every step of the manufacturing process, enabling them to consistently create high quality suits. Producing swimsuits for very well known name brands insures competitiveness and increased demand for their product. Using the momentum they have built up with their design and manufacturing business, RAJ is launching an innovative online retail site for their products. Their current marketing strategy for this site is to build a strong social media presence, which has been well implemented with their blog, Twitter, and Facebook pages. 5 RAJ currently distributes to major department stores, specialty retailers, swimwear boutiques,
Weaknesses Because RAJ is new as an e-tailor, sufficient brand equity and recognition has not yet been established for swimspot.com. Utilizing technology such as Facebook and twitter is a step in the right direction. These activities allow fans and followers to get to know the company and share it with friends. Innovative use of technology will be the key to boosting RAJ’s image with their target market. Other threats are the limited price discounting options because RAJ cannot compete with its core customers. In addition, there are some website navigation improvements that could be implemented. Threats The main threat that RAJ faces is how to market their website without undercutting or cannibalizing sales from their retail clients. They view the website as a source of additional income, but they do not want to loose any of their retail clients because of it. For this reason they have decided not to utilize a marketing campaign that would be in direct competition against their retailers. This will create more challenges for RAJ and Swimspot. In addition, the internet marketplace is extremely crowded. Current ecommerce competitors with strong brand presence as well as any new sites, particularly discount sites, entering the space are threats to Swimspot. Opportunities RAJ and Swimspot have a number of opportunities to increase their brand exposure, site traffic, and conversion rate. Improvements to the Swimsport site will help make it easier to convert consumers and get return business. The marketing opportunities are centered around building partnerships with other successful businesses, engaging consumers, and providing additional purchase incentives.
Strengths • • • • Vertical Integration Brand partnerships Financial stability Quality Opportunities • • • • Partnerships Advertising Call to Action Incentives Site Enhancements Critical Issues • • • • • • •
Weaknesses New e-tailor – no brand equity for swimspot.com Limited pricing options Website Navigation Threats Competing with RAJ customers Undercutting price / cannibalization Crowded internet marketplace Discount sites – Groupon, Ideeli, etc.
There are several critical issues facing RAJ Manufacturing as it expands vertical integration to include online retail. Price integrity to insure it does not undercut its customers is essential. As such, offering discounted swimwear prices online is not feasible. Further, to avoid overtly competing with its customers, RAJ has branded its online retail storefront “swimspot.com”, which is not directly associated with RAJ. RAJ currently seeks to increase web traffic and conversion rates on swimspot.com, targeting key selling months of May and June.
Target Market Analysis
Demographics With its 11 different swimwear lines, Raj Manufacturing has the ability to cover a wide demographic of female clients. Each line targets a specific age group, together covering a core age range of 18-55. With the young contemporary Hurley brand, the target is the 19 year old who is inspired by creativity and interested in the nomadic lifestyles of the music and surf culture. With contemporary missy and luxury brands such as Luxe by 7
Lisa Vogel, Raj can just as easily provide product for the 29-49 year old woman who is well traveled, fashion aware, sophisticated, refined, and health conscious. They have the brands to appeal to women ranging from Gen Y to the sophisticated country club woman and anything in between. The swimspot.com demographic Raj wishes to target are females ages 21-35 with an income of $70,000 or more.
Brand Luxe by Lisa Vogel Ella Moss Isla St. John Splendid Age Keywords L uxury 29-49 modern, chic, eclectic 18-39 contemporary, stylish 35-55 sophisticated, sensible 18-39 clean, simple, fresh C ontem ryMis y pra s 30+ suburban, flattering 25-45 down to earth, confident 25-45 active, sporty YoungC ontem pora ry 18-28 sexy, fashion forward 16-24 surf, exotic, flirty 19 beach culture
Athena Tommy Hilfiger Next by Athena
Guess Reef Hurley
Psychographics In order to determine how to drive more traffic to the site and increase the overall conversation rate, a series of survey questions were compiled and distributed to over 300 random women of differing ages and financial status. The survey was conducted to flush out consumer behavior by determining who is purchasing swimsuits online, how many, for what reason and the perception of the overall experience. The demographics of those surveyed fit well with RAJ’s defined target market for swimspot.com. The majority of women were a median age of 28, single, with a 55% of the respondents had purchased a household income of $50,999-$75,000.
swimsuit online and 47% said they would do so again. 35% of the women said they would not purchase online because of fit issues. Overall, fit was the main concern when buying swimwear (48%). 8
It was determined that 54% of consumers purchase 2-3 swimsuits per year and 67% purchase 2 or more. Swimsuits are purchased for various activities, with tanning and swimming being the most popular.
Factors that would influence driving traffic to the website were varied, however selection was at the top of the list.
In terms of influencing conversion rate, respondents clearly rated price as the #1 factor influencing a purchasing decision.
Regarding the site itself, features that were of particular interest to respondents were interactive sizing tools and the build your own swimsuit feature. The full results of the survey are available in the appendix.
The marketing objectives are as follows: 1. 2. 3. 4. 5. Drive traffic to swimspot.com Increase conversion rate Build awareness and brand equity Avoid undercutting or aggressively competing with RAJ customers Perform against target budget of $200,000
To achieve brand awareness, increase site traffic and increase the conversion rate to swimpspot.com, a multi-level approach focusing on several key areas is recommended: • • • • Partnerships Advertising Call to Action Incentives Site Enhancements Partnerships A great way to build excitement, brand awareness, and a loyal customer base is to partner with other successful companies. Affiliate Program 10
One way to make it easy to partner is to create an affiliate marketing program. The Affiliate Partner program consists of establishing relationships with target partners and creating joint promotional activities and website affiliate links. There are numerous examples of successful affiliate programs, including Amazon.com and Sephora.com.
The swimspot.com Affiliate Partner Program offers a simple and convenient way to bring swimwear fashion to partner websites, giving each affiliate partner the ability to offer its customers access to a large and diverse selection of leading swimwear brands. Swimspot partners earn a 6-8% commission on every product sold through their affiliate links. Commission payments begin upon reaching $1,200 in minimum monthly sales. Tiered Commission Structure Commission Sales Revenue 6% $1,200 7% $6,000 8% $9,000 Each partner will be assigned a promotional code in the form of a coupon. The prospective customer will enter into Swimspot and upon checkout enter their promotional code, or click the link from the affiliate’s website and automatically activate the promo code. Swimspot will provide a complete marketing kit, including all the sales tools, marketing materials, and promotional items. There is no cost to join the program or monthly membership fee. All order transactions are managed by swimspot.com. 11
Target partners of the affiliate program are: • • • • • Tanning Salons Spas, International Spa Association, Live Spa Magazine Hotels / Resorts Hotel booking services (such as Travelocity) Yacht Clubs, Regatta Central
Promotional activities for each of the partners would include display advertisements, website affiliate linking and cross promotional events. Display advertisements would vary depending upon the type of establishment, from a small acrylic frame to an easel board with a tear-off pad to flyers.
The cost to Swimspot to produce 2500, 8.5 x 5.5 double sided, glossy flyers would be $350. Easel stands with tear pad are $12.50 for 5, and acrylics with inserts are $2.30 per piece. Additional cost savings would be available with higher volume printing. Affiliate Website Linking Brand awareness and site traffic could be increased by leveraging the existing traffic of a prospective partner’s website and directing customers to swimspot.com. Swimspot will be able to gain access to its target audience and promote its products through banner advertisements or link with the Swimspot logo. In the case of a tanning salon, each salon would be encouraged to participate in Swimspot.com’s affiliate program as described above. As each prospective customer is redirected to Swimspot.com, the website has the capability to capture the information of each new customer and record the transaction, thereby giving each affiliate credit for the sale. Tanning salons are ideal partners for Swimspot and are suited for display ads and flyers. • 10% of the US population visits tanning facilities 12
• Total Number of Professional Indoor Tanning Facility Businesses: 25,000 • The average Salon has 11 tanning beds and an average customer database of 2,200. • Total Professional Indoor Tanning Facility Customer Base: 30 million • Total Number of Professional Tanning Business Employees: 160,000 • Total Economic Impact of Professional Indoor Tanning Facilities: $5 billion
Sources: (http://www.theita.com/, http://www.tanningsalonbusinessplan.com/)
In addition to the affiliate linkages, a promo could be built with tanning salons that would include a small display space for swimspot bikinis in the salon and a free tan for each swimsuit purchased through the affiliate program. Events Cross-promotional events could be actively pursued by swimspot.com on an ongoing basis. Each affiliate partner would be approached for co-marketing sponsorship opportunities for local promotional events thereby reducing the costs to both the affiliate and Swimspot. These events will be hosted in February and March, prior to the peak season to target the spring break and fashion early adopters. Local events such as surf contests, festivals, fashion shows, and concerts will help with brand awareness and create buzz. Using a cost-effective web tool to broadcast a live show, users will have access to immediate promotional opportunities during the show. The show would be posted on the swimspot.com home page as an additional feature to capture more interest. A viral marketing approach could be adopted where the video could be pasted on the YouTube, Facebook, Twitter and other social media websites to attract more traffic to swimspot.com. Other partner promotions could be negotiated as well. An example of a partnership promo Swimspot might consider is the Glen Ivy Spa & Ayres Hotels promotion currently on the Ayres & Glen Ivy websites. Swimspot could potentially negotiate participation in time for this year’s season. Ayers Hotels are a growing high-end chain and are family
owned, much like RAJ.
In addition, the owner is an avid yachtsman, potentially
providing inroads to other marketing partnerships and promotions. Advertising Beyond partnership promotions, there are a number of advertising opportunities for Swimspot. It is important for Swimspot to continue building brand awareness and bring more traffic to the website. There are a few targeted advertising opportunities which might be ideal for reaching the right audience which is aligned with Swimspot’s target demographic. There are three areas that may be most ideal for Swimspot advertising. Travel sites and airports reach a broad audience with disposable income who may be vacationing and in need of a new swimsuit. Arenas provide a large audience that is actively going to concerts or sporting events. Travel Sites Swimspot could do targeted advertising on travel sites at the time of booking or in a confirmation e-mail. Travelocity, for example, has 50,000 hits per day. This again dovetails with the partnership opportunities, or could be pursued independently as pure advertising. Airlines as well as other travel sites are increasingly trying to provide a onestop-shop, including car rentals and hotel reservations for example, to attract visitors. The strategy seems to be working, as travel industry site visits are up.
The top travel industry websites are as follows:
Swimspot should target those that offer booking services such as Expedia, Southwest Airlines, Priceline, etc. A more detailed list of travel site web statistics may be found in the Appendix. Cost of advertising varies, but ranges from $15 to $65 CPM and depends upon the type of advertising, such as banner ads or e-mail ads. Haiwaiian Airlines is another great example of a potential partner not only for advertising, but to build a whole promotional campaign with. Airports Placing advertisements in airports is another recommended avenue for Swimspot to explore. A recent study done by Arbitron (a media and marketing research firm) showed a number of significant findings: • Ninety-two million Americans have taken at least one round-trip airline flight in the past 12 months (39%). 21% of Americans, or 50 million people, have flown within the past 3 months, and 11%, or 26 million people, have used air travel in the past month. • Airline Travelers are 80% more likely to have an annual household income of $100,000 or more. 18% of airline travelers have an annual household income of $100,000 or more, compared with only 10% of average Americans. 51% of airline travelers have a household income of $50,000 or more per year. • Airline Travelers are sophisticated shoppers. Airline Travelers are more 15
likely to have a propensity for designer clothes, luxury cars and cutting-edge personal digital devices. They also shop more often online and spend more when they do shop. • Airline travel remains remarkably consistent throughout the year. The number of people using airline travel does not vary significantly from month to month or season to season. The monthly average remains steady at around 26 million Americans, and the three-month average hovers around 50 million. • 46% of Airline Travelers are spending more time at the airport. 51% spend 30 minutes or more at the airport before going through security, and 68% spend an additional 30 minutes or more in the terminal waiting to board their flight. • During longer airport waiting periods Airline Travelers take the time to read advertisements. 72% of Airline Travelers who recall noticing airport advertising displays say they take the time to read them. 82% of Frequent Flyers say they take the time to read airport advertising displays. • Airport advertising that runs for three months delivers double the reach of a one-month campaign.
Airport advertising runs in 4-week increments and varies in cost, depending upon traffic and ad location. Cost for the Orange County Airport is $2,000 per month. A listing of airports and consumer traffic can be found in the appendix.
Arenas Arenas present another excellent advertising opportunity for Swimspot. Just in Southern California, there are a number of major arenas which cover a wide demographic.
(source: Anaheim Convention Center)
• • •
10.9 million people within a 30 mile radius 20.6 million people within a 90 mile radius So Cal represents 58% of California’s total population
A few different options exist for arena advertising, such as the LED banner around the arena, print ads in the programs, and ticket stub ads. Ad costs at the Honda Center, for example, would be $120,000 annually for the LED banner at every single event, $5,000 for a program print ad, and $10,000 for ticket stub ads. The best option for Swimspot would likely be targeted ticket stub ads for events with the demographic profile matching that of Swimspot’s target consumers.
Call to Action Incentives Refer a Friend Program Upon completing a purchase, a customer opts in to send an email to friends announcing that they have just made a purchase at swimspot.com. In turn, the email will include a 10% off coupon that the customer’s friends may use towards a new purchase of $100 or more. For every new friend that buys a product, the customer receives a $20 “bikini bucks” credit toward their next purchase. The Bikini Bucks are redeemable online as a cash discount. Give Away Items To further motivate consumers to convert to purchasing a swimsuit, Swimspot could offer some give-away items. Inexpensive items such as a sarong, cinch bag, or flip flops are a nice perk for customers and increase their perceived value without discounting the list price of the swimsuits.
Costs for the away items are estimated at $2.00 per piece for the sarong, $1.50 for the cinch bag, and $2.00 for the flip flops. If RAJ were to manufacture the items in-house, costs could likely be further reduced.
Website Enhancements In order to increase site traffic and conversion rates as well as page views, there are a number of enhancements recommended to the Swimspot website. Navigation and ease of selection are extremely important, as are key features indicated by consumers. The suggested website enhancements are as follows: • • • Bikini Builder Enhancements o Additional selections o Model Selection Feature Interactive Bikini Sizing Tool o Suggestions based on body type & measurements Navigation Improvements o By Style o By Color o By Price o By Feature (reversible)
Bikini Builder Enhancements Survey responses indicated that the top two features consumers would like to see when purchasing a swimsuit online are the Bikini Builder option and an Interactive Sizing Tool. Swimspot.com already incorporates a Bikini Builder tool, however, there are a few recommendations that could be implemented to increase the site’s conversion rate. Enhanced selection criteria, broader selection, and a variety of models will improve the customer’s interaction with this tool. The pieces that are available in the Bikini Builder tool are limited at this time. This tool would be greatly enhanced if all of the suits available on swimspot.com were available for selection. An increase in selection would allow the customer to be more creative with her style and could improve the customization experience for her. This same survey also revealed that the main reservations customers have regarding purchasing a swimsuit online is the fit of the suit. Some of these reservations could be alleviated by providing the customer the option to select a model that has a similar body type. The present setup of the Bikini Builder tool only shows one model for each brand. It is commonly known that each suit piece will look different on women with different 19
body shapes. Allowing the customer to select a model that has a similar shape to her may elevate the level of confidence she has in the fit of the suit. Further, having models with different hair color and skin tone will help the consumer to have a more personalized Swimspot experience that is tailored to her. Interactive Bikini Sizing Tool Another option to consider for enhancing the site would be to develop an interactive sizing tool. Currently, Swimspot has sizing charts for each brand. If the consumer could input her own measurements, the site could then return the correct size for each suit the customer has interest in. The site could also provide some style recommendations based on the customer’s preferences (click history) and that work well with the customer’s body type. Further, the site could have an alert at checkout if the customer has inadvertently selected a size that does not work for her. Site Navigation Currently, a customer must select a brand name or navigate via the filters. While this gives the consumer the ability to narrow choices, there may be other desired navigation filters. For example, if the customer could select a bra style of halter or tankini and a pant style of hipster or shorts, the tool could display all tops and bottoms of the specified style regardless of the brand. Other selection criteria could be color, price, or special features such as reversible. Combining the ability to refine the list of styles displayed in the shop section as well as the Bikini Builder tool will not only enhance the customer’s experience, but will help sell the bikinis based on features the customer prefers. The costs related to these three enhancements include the modeling costs, photographer costs, and programming costs. However, these are all enhancements to the existing features of swimspot.com and not completely new development. RAJ Manufacturing needs to take advantage of the opportunities created by new technology. For example, if they were to build an iPhone application for the Swimspot they could expand their technological presence. This application could provide the users with up to date swimming and surfing news and events as well as the “Build Your Bikini” tool which could be used to drive the consumer to the website.
Because the swimsuit season is already ramping up for this year, the implementation timeline for many of these marketing programs is relatively short. Some may be implemented as a small-scale test this year and ramp up to a full-blown campaign next season. It is recommended that each program have a project lead to manage the implementation. The following timeline outlines the implementation schedule:
Partnerships Affiliate Program Develop Affiliate program Develop Marketing mate Develop Target Partner Implement web tacking Market program to targe Year 1 goal = 15 affiliate Cross Promotional Events
ROI Projections by Project
Partnerships Affiliate Program Startup costs per a 500 flyer 2 Easel S 1 Acrylic Monthly Commissi $1,200 = $6,000 =
$1,200 $6,000 $9,000 Projected Numbe Proj. Mont Project Project ROI (re Cross Promotional Example: Glen I Marketing Coll
Cash Outlay Year 1
Year 1 Cash Outlay Partnerships Affiliate Program Startup costs affiliates: Cross Promotional Events (per event) Marketing Collateral Advertising Travel sites $25 CPM / to budget Airports (Example: Orange County) 3 month block 2 x per year Arenas Ticket Stub ads Incentives Refer a Friend Programming @$60/hr, 10 Give Away items Initial Inventory Investment Website Improvements Navigation Improvements Programming @$60/hr, 25 Interactive Bikini Sizing Tool Programming @$60/hr, 50 Bikini Builder Additional selections/filters (programming 15hrs) Model Selection Feature Photography Models Total Annual $1,160 $2,000 Annual $162,840 $12,000 $10,000 Annual 600 $1,800
$1,200 $3,000 $900 $2,000 $2,500 $200,000
Appendix A – Brand Model
Raj Manufacturing/Swimspot.com Brand Model Current Brand Position: "An online swimwear site built on 43 years of success" Future Brand Objective: “The Convenient Luxury Swimwear Supplier” Conceptual Target: “The Affluent and Up-To-The-Minute” The women who frequent this site have the income to purchase seasonal luxury items. They are comfortable and familiar with both the internet, and purchasing products via the internet. They are heavy influencers in terms of their fashion style and sense. Core Desire: “Looking Good Does Not Have To Be Complicated” There are over 10 major swim brands to choose from on the site. They can set their own trends, using the selection and on-line tools to their advantage. Aside from selection, the navigation of the site and turnaround time is both unproblematic and immediate. The ultimate attribute the copious and up to the minute not only desire but rather expect. Role of the Brand: “To Provide High Quality Products And Excellent Service” Compelling Truth: Swimspot.com offers luxury brands and service for the fashion forward modern woman who desires convenience and a personal touch. Selling Idea: “The perfect spot to suit your needs”
Appendix B – Creative Brief Raj Manufacturing/Swimspot.com Creative Brief Target: Women, between ages 21-35, who frequently participate in sun or water related activities. They believe in high quality products and are willing to pay for them. They are up to date on the latest technologies and frequently use the internet to make purchases. Ad Objectives: Drive traffic and increase conversion rate on the website Insight: “A bathing suit is a very personal item. I want to look good, I want selection, and I want it fast.” Promise: With Raj Manufacturing’s superior workmanship and unfailing shipping to add to the immense selection of swimsuits, they deliver a sentiment of satisfaction. Support: -Vertical, Quick Response production system -Excellence in customer service, quality, and design -Broad selection of the most fashion forward brands Tone: -Personal -Confident -Influential Assignment: Use the swimspot website. Have customers submit creative testimonials. Stream testimonials on social networks creating a web that leads back to swimspot.com.
Appendix C – Press Release
SwimSpot Unveils the Details of Its Affiliate Program Expected to Bolster Revenues in 2010
Tustin, California – May 4th, 2010 – Tapping into the key channel and nebulous world of internet traffic secured with a commission program will seal the deal for the swimsuit retailer, backed by Raj Manufacturing. Swimspot serves as the company’s launch into the direct to consumer online business. The goal for this website is to capture a portion of the retail income by attracting key channel partners to expand the reach of its online service to new vertical markets. Swimspot intends to capitalize on the explosion of consumer presence online that has fueled the growth of online retailers the last several years. The Affiliate Program represents Swimspot’s commitment to expand its online retail sales capabilities. The Affiliate Program rewards participants with economic incentives, co-marketing opportunities and promotional activities. Renatta Carlson has been operating a tanning salon for twelve years and has seen the highs and lows of the trade. With the recent economic conditions, Ms. Carlson welcomes cost-effective marketing models that provide the opportunity to expand the salon’s customer base. "Salons come and go," says Ms Carlson, “and those businesses that explore innovative ways to adapt to present market conditions maintain a presence.” Other affiliate partners such as Live Spa Magazine value the new website’s interactive tools and enhancements. Swimspot has invested in a major overhaul of its website aimed at improving the customer experience by adding new features that include an interactive bikini sizing tool, mini-website catered to their partner’s audience, and an online community with product reviews, product comparisons and more. Founded in 1967 by Raj & Marta Bhathal, RAJ Manufacturing is swimwear’s leading house of fashion in Orange County. RAJ Manufacturing is also one of the only vertically integrated manufacturers of premium women’s swimwear in the US. Headquartered in Tustin, California, RAJ employs a staff of 400 at its 130,000 square foot facility, which houses design, production, distribution and warehousing operations. One of the main competitive advantages RAJ has is its tight inventory control and short lead times. By producing locally, RAJ has lead times of between 10-60 days versus 4 months if suits were being manufactured in China. Contact: Alex Bhathal, CEO www.SwimSpot.com Ph: 714.838.3110 ###
Appendix D -Survey Summary
TOTAL SURVEYS 1. What are your main considerations when buying swimwear? Style Price Fit Brand Other 2. How many swimsuits do you purchase annually? 1 2-3 4-5 6 3. How do you stay updated on the hottest styles? Magazines Celebrity Watching Television Blogs Internet Sites Other 4. What activities do you typically buy swimsuits for? Surfing Tanning Parties Swimming Exercise Other (Leisure, Vacation, Laying Out ) 5. Would you purchase a swimsuit online again? If no, why not? Yes No 23 172 58 166 33 17 5% 37% 12% 35% 7% 4% 213 22 58 30 44 8 57% 6% 15% 8% 12% 2% 90 144 28 7 33% 54% 10% 3% 311
117 76 204 21 4
28% 18% 48% 5% 1%
5. Would you purchase a swimsuit online again? If no, why not? Yes, I would purchase a swim suit online again. No because of : Fit Issues Transaction/ Payment Problems Shipping Problems Poor Quality of Product Product didn't look like it did online I have never purchased a swimsuit online 6. What would attract you to an online swimwear retail site? Convenience Word of Mouth Promotions Selection Customization Return/Ship Policy Company Reputation
114 85 3 9 9 23 0
47% 35% 1% 4% 4% 9% 0%
95 98 79 119 64 99 72
15% 16% 13% 19% 10% 16% 12%
7. Once on the website, what factors influence your decision to actually purchase the swimsuit? Price 206 40% Return/Ship Policy 137 26% Site Security 59 11% Promotion Codes 45 9% Ease of shopping cart 49 9% Urgency-Only 1 left! 21 4%
8. Are there certain features you would like to see on swimwear websites? Interactive Sizing Tools 157 Suggestions 56 Price Comparison Tool 62 Build Your Own Swimsuit Tool 158 Other 10
35% 13% 14% 36% 2%
9. How do you hear about new shopping sites? Friends Blogs Radio/Television/Magazines Online Advertisements Website Review Forums Other Websites 10. Please tell us a little about yourself. Age: (Median Age) 28 203 63 41 101 47 12 43% 13% 9% 22% 10% 3%
Married In a Relationship Divorced Single Widowed Household Income 0-$25,000 $25,999-$50,000 $50,999-$75,000 $75,999-$100,000 $100,000+
78 51 4 100 2
33% 22% 2% 43% 1%
33 19 87 19 32
17% 10% 46% 10% 17%
Appendix E – Travel industry statistics
Expedia, Inc. Demographics
Monthly Unique Visitors: 27,319,000 Women: 51% Men: 49% Children: 56% % with HH Income above $75K: 49% Taken Personal Domestic Trip in Past Year: 77% % over 35 years of age: 61.63% Married: 63% Online Domestic Travel Spending (Past 6 mths) Bought Airline Ticket: 43.0% Made Hotel Reservation: 39.0% Made Car Rental Purchase: 21.0% Spent over $500 on Online Travel Products: 41.6% Source: Media Metrix, 2006
Airport Traffic Statistics
State AUS NZ AUS AUS NZ NZ CARRIACOU NZ AUS AUS City Coffs Harbour Wanganui Broome Dubbo Gisborne Invercargill Carriacou New Plymouth Newcastle Proserpine Airport Coffs Harbour Regional Airport Wanganui Airport Broome Airport Dubbo Airport Gisborne Airport Invercargill Airport Laureston Airport New Plymouth Airport Newcastle Airport Whitsunday Coast Airport Puerto Plata Samana Santo Domingo NZ AUS ST. KITTS BELIZE BARBADOS AUS NZ JAMAICA BONAIRE AUS BAHAMAS AUS NZ AUS GRENADA ANTIGUA NZ AB AK Tauranga Townsville Basseterre Belize City Bridgetown Port Gladstone Hamilton Jamaica Kralendijk Mount Isa, Qld Nassau Queensland Queenstown Rockhampton, Qld St. Georges, St. John's Taupo Edmonton Anchorage Fairbanks Juneau Kenai AL Dothan Huntsville Mobile Montgomery Tauranga Airport Townsville Airport Robert L. Bradshaw International Airport Philip S.W. Goldson International Barbados Cruise Terminal Gladstone Airport Hamilton International Airport Norman Manley International Airport Bonaire International Airport N.V. Mt Isa Lynden Pindling International Airport Mackay Airport Queenstown Airport Rockhampton Airport Point Salines Intl Airport V C Bird International Airport Taupo Airport Edmonton International Airport Anchorage International Airport Fairbanks International Airport Juneau International Airport Kenai Municipal Airport Dothan Regional Airport Huntsville International Airport Mobile Regional Airport Montgomery Regional Airport 5,235,928 898,152 807,650 189,440 96,038 1,214,410 607,024 362,462 66,000 745,000 700,000 656,000 163,000 160,000 450,000 170,000 1,485,000 270,000 1,145,000 240,000 Traffic 330,000 45,000 300,000 158,000 122,000 250,000
AR ARUBA AZ
Bentonville Aruba Bullhead City Flagstaff Tucson Yuma
Northwest Arkansas Regional Airport Aeropuerto Internacional Reina Beatrix Laughlin Bullhead International Airport Flagstaff Pulliam Airport Tucson International Airport Yuma International Airport Abbotsford Airport Kern County Air Terminal Fresno Yosemite International Airport Long Beach Airport Monterey Peninsula Airport Oakland International Airport Sacramento International Airport Norman Y. Mineta San Jose International Airport Aspen/Pitkin County Airport Colorado Springs Airport Durango-La Plata County Airport Gunnison Crested-Butte Regional Airport Montrose Regional Airport Juan Santamaria Internacional Bradley International Airport Hato International Airport Dunedin Airport St.Petersburg-Clearwater Intl Airport Daytona Beach International Airport Destin Airport Northwest Florida Regional Airport Southwest Florida International Airport Ft. Lauderdale-Hollywood Intl Airport Gainesville Regional Airport Melbourne International Airport Naples Municipal Airport Panama City-Bay County International Airport Pensacola Gulf Coast Regional Airport Orlando Sanford Domestic Airport Orlando Sanford International Airport Sarasota Bradenton Intl Airport Tallahassee Regional Airport Palm Beach International Airport Southwest Georgia Regional Airport Augusta Regional Airport
218,732 88,476 4,357,496
Abbotsford Bakersfield Fresno Long Beach Monterey Oakland Sacramento San Jose
328,800 1,272,064 2,830,560 431,594 14,288,254 10,764,926 10,510,514 364,536 2,081,758 232,620 85,244 185,164
Aspen Colorado Springs Durango Gunnison Montrose Aeropuerto Costa Rica Windsor Locks Curacao, Netherlands Antilles Dunedin Clearwater Daytona Beach Destin Eglin Air Force Base Fort Myers Ft. Lauderdale Gainesville Melbourne Naples Panama City Pensacola Sanford Sanford Sarasota Tallahasse West Palm Beach
CR CT CUR NZ FL
542,000 744,566 680,656
763,984 7,973,856 22,158,500 284,136 274,204 27,968 319,896 1,664,316
1,971,194 1,564,994 924,466 6,950,690 77,516 309,116
Savannah Valdosta GUAM IA Tamuning Cedar Rapids Des Moines Dubuque Waterloo ID Idaho Falls Lewiston IL Bloomington Peoria Champaign Springfield IN Indianapolis South Bend KS KY Wichita Lexington Louisville LA Alexandria New Orleans Lafayette Monroe Shreveport MA MB ME Hyannis Winnipeg Bangor Portland MI Flint Grand Rapids Kalamazoo Lansing MN Duluth Rochester MO MS Kansas City Columbus Gulfport Jackson MT NB NC Butte Dieppe Fayetteville Greensboro New Bern
Savannah- Hilton Head International Airport Valdosta Regional Airport A.B. Won Pat International Airport Eastern Iowa Airport Des Moines Dubuque Regional Airport Waterloo Airport Idaho Falls Regional Airport Lewiston-Nez Perce County Regional Central Illinois Regional Airport General Wayne A Downing Peoria Int'l Airport University of Illinois-Willard Airport Abraham Lincoln Capital Airport Indianapolis International Airport South Bend Regional Airport Wichita Mid-Continent Airport Blue Grass Airport Louisville International Airport Alexandria International Airport Louis Armstrong New Orleans International Lafayette Regional Airport Monroe Regional Airport Shreveport Regional Airport Barnstable Municipal Airport Winnipeg James Armstrong Richardson International Airport Bangor International Airport Portland International Jetport Bishop International Airport Gerald R. Ford International Kalamazoo/Battle Creek Capital Region International Airport Duluth International Airport Rochester International Airport Kansas City International Airport Golden Triangle Regional Airport Gulfport - Biloxi International Airport Jackson-Evers International Airport Bert Mooney Airport Greater Moncton International Airport Fayetteville Regional Airport Piedmont Triad International Coastal Carolina Regional Airport
1,985,250 70,188 2,840,514 1,060,834 1,926,462 91,756 57,760 333,006 139,452 525,960 542,732 224,880 124,276 8,194,796 797,000 1,538,248 1,041,520 3,824,990 291,522 7,540,492 438,884 218,022 614,624 408,304
693,376 1,639,990 1,065,242 1,985,078 377,984 513,126 339,942 320,904 11,666,128 55,042 924,832 1,435,152 73,688
350,864 2,178,872 208,210
Raleigh-Durham ND Bismarck Fargo NE Lincoln Omaha NZ NF NH Nelson St. Johns Manchester Portsmouth NM NOVA SCOTIA NV NY Albuquerque Enfield Elko Albany Ithaca New Windsor Syracuse White Plains NZ OH Rotorua Cleveland Columbus North Canton Swanton Vandalia OK ON Tulsa Mt. Hope Ottawa PA Allentown Avoca Erie Latrobe Middletown State College PEI AUS AUS RI SC Charlottetown Gold Coast Hervey Bay Warwick Florence Hilton Head Island West Columbia SD SK Rapid City Regina Saskatoon
Raleigh-Durham International Airport Bismarck Municipal Airport Hector International Airport Lincoln Airport Omaha Eppley Airfield Nelson Regional Airport St. Johns International Airport Manchester Boston Regional Airport Pease International Tradeport Albuquerque International Sunport Halifax Robert L. Stanfield Int'l. Airport Elko Regional Airport Albany International Airport Tompkins Regional Airport Stewart International Airport Syracuse Hancock International Airport Westchester County Airport Rotorua Airport Cleveland-Hopkins International Airport Port Columbus International Akron-Canton Airport Toledo Express Airport Dayton International Airport Tulsa International Airport John C. Munro International Airport Ottawa International Airport Lehigh Valley International Airport Wilkes-Barre Scranton Intl Airport Erie International Airport, Tom Ridge Field Arnold Palmer Regional Airport Harrisburg International Airport University Park Airport Charlottetown Airport Gold Coast Airport Fraser Coast Airport T. F. Green Airport Florence Regional Airport Hilton Head Island Airport Columbia Metropolitan Airport Rapid City Regional Airport Regina Airport John G. Diefenbaker Airport
9,959,106 365,836 601,696 340,210 4,325,908 850,000
3,841,822 116,114 6,478,192
57,046 2,847,508 171,330 910,090 2,358,226 1,646,956 310,000 11,142,438 7,654,698 1,383,206 339,358 2,825,516 3,242,034
853,374 438,218 284,730 35,186 1,286,570 288,320
3,900,000 224,000 4,999,354 92,904 169,580 1,241,836 475,384
SM JAMACIA St. Lucia
Saint Maarten Montego Bay Castries Castries
Princess Juliana International Airport Sangster International Airport George F. L. Charles Airport Hewanorra International Tri-Cities Regional Airport McGhee Tyson Airport Nashville International Airport Rick Husband Amarillo International Airport Easterwood Airport Corpus Christi International DFW International Airport El Paso International Airport Valley International Airport Killeen-Fort Hood Regional Airport Laredo International Airport Lubbock International Airport McAllen Miller International Airport Midland International Airport San Antonio International Airport Tyler Pounds Regional Airport Waco Regional Airport Albemarle Airport Newport News/Williamsburg Intl Airport Norfolk International Airport Shenandoah Regional Airport Henry E. Rohlsen Airport Cyril E. King Airport Burlington International Airport Vance W. Amory International Airport Tri-Cities Airport Pullman-Moscow Regional Airport Yakima International Airport Seattle-Tacoma Austin Straubel International Airport Dane County Regional Airport Mitchell International Airport Oneida County Airport 485,576 49,712 144,032 30,838,232 880,352 1,567,874 7,502,690 75,216 227,948 1,155,174 827,386 983,694 7,823,452 156,964 152,820 374,156 1,026,762 3,734,614 9,814 364,934 1,199,018 1,406,372 425,618 1,777,990 9,775,850 916,456 181,790 844,782 56,964,834 3,339,584 885,676
Blountville Knoxville Nashville
Amarillo College Station Corpus Christi Dallas Fort Worth El Paso Harlingen Killeen Laredo Lubbock McAllen Midland San Antonio Tyler Waco
Charlottesville Newport News Norfolk Weyer's Cave
St. Croix St. Thomas
VT W.I. WA
South Burlington Nevis Pasco Pullman Yakima
Seattle Green Bay Madison Milwaukee Rhinelander