Sample Marketing Plan: Pegasus Sports International 1.0 Executive Summary Pogasus Sports lilernatlonal is a start-up skating acceysory manufacturer. tain gle tine and are al bhladles by the general public afier one of 1 the category. In cal early market praduets, Pegasus using inline skates and some of Pegasus's ‘cessarles such as SkaleSails, The af secessory market has been largely Ignored. Alt sal major manufacturers of the skates themselves, the accessory market has not been addressed. This provides Pegasus with an extraordinary oppor: unity for market growth, Skatingisa boomingspart. Currently, most of the sk however, a grow- Ing number of skating competi Im-oriemted conipetitions such as skate hockey as well as individual com- petitions such as specd skate racing. Pegasus will work to grow these markets and develop the skate transportation market, a ‘more utilitarian use of skating. other: Pegasus has outlined a go-to-market marketing program that combines highly relevant products and services with an evolving direct-to-consumer distribution strategy to tap into custosner passions and loyalty. 2.0 Situation Analysis Pegasus is entering its first year of operation. Its products have been well received, and marketing will be key to the develop- ‘ment of brand and product awareness as well as the growth of the customer base, Pegasus International offers several dilfer- ent aftermarket skating accessories, serving the growing inline skating industry, Table 2.3 Target Markel Forecast Torget Market Forecast 2.1 Market Summary parker and nf thie most knows a je prized customer, ‘His informatio tan wha is served, what the how Pegasus can hetter ecmin ‘specific needs are, and with Target Markets Ne Hines Spe Hockey Exireme 2.1.1 Market Demographics ‘The profile for the typical Pegasiis customer consists of the fol- lowing geographic, demographic. and behavior Factors Geographics Pegasus has no set geographic target area. By leveraging the expansive reach of the Internet and mukiple delivery services, Pegasus can serve both domestic and interna- tional customers. ‘The total argeted population is 31 million users. Demographics There is an almost equal rauo berween male and female users, Ages 13-46, with 48 percent clustering around ages 23-34 The recreational users tend to cover the widest age range, Including young users through active adults. The fimess users tend to be ages 20-40. The speed users tend ta be in their late 20s and early 40s. The hockey players are gener- ally in their teens through their early 20s. The extreme seg. mentis of similar age to the hockey players. Potential Customers Growth 2016 2017 2018 2019 2020 CAGR Recreational 10% 19,142,500 21,056,750 23,162,425 25,478,668 28,026,535 10.00% Fitness 15% 6,820,000 7,843,000 9,019,450 10,372,368 11,928,223 15.00% Speed 10% 387,500 426,250 468,875 515,763 567,339 Hockey 6% — 2,480,800 2,628,800 2,768,528 2,953,720 3,130,943 Exteme 4% 2,170,000 2,256,800 2,347,072 2,440,955 2,538,593 Total 10.48% 31,000,000 34,211,600 37,784,350 41,761,474 46,191,633 "Compound Aree! Growth Fete6 OF the users Who are AVE gratuuate degeee or stabs Theadult usershavea 65 percent have at Behavior Factors © Users enjoy fitness activities not ns a: means for a healt fe but as intrinsically enjoyable activities in themsolv + Users spend money on gear, typically sports equipment © Users have active lifestyles that inehute sore: ation at least 8y0 to three tines 39 otters 2.1.2 Market Needs Pegasus is providing the skating community with a whle range of accessories for all variations of skating, The company’ seeks (0 fulfill the follovving benefits that are Important 10 1s customers: © Quatity craftsmanship. The customers work hard for their money and do not enjay spending it on disposable products that work for only a year orwvo, Well-thought-out designs. The skating market has not been addressed by well-thought-out products that serve skaters’ needs, Pegasus's industry experience and personal dedication to the sport will provide it with the needed information to produce insightfully designed products. © Customer sernice. Exemplary service is required to bulld a sustainable business that has a loyal customer base, 2.1.3 Market Trends Pogasus will distinguish itself by marketing products not previe ously available to skaters. The emphasis in the past has been to sell skates and very few replacement parts. The number of skatersis not restricted to any one single country, continent, or age group, so there isa world market, Pegasus has products for virmually every group of skaters. The fastest-growing segment of this sport is the fitness skater (Table 2.3). Therelore, the marketing is being directed toward this group. BladeBoots will enable users to enter estab- lishments without having to remove their skates. BladeBoots Will be almed at the recreational skater, the largest segment. ‘SkateAids, on the other hand, are great for everyone. “The sport of skating will also grow through SkaveSatling. This sport is primarily for the mediumsta-advanced skater, and its growth potential is tremendous. The sas that Pegasus has manufactured have been sald In Europe, followhng 3 pal- tern similar vo windsurfing, Another trend Is group skating. More nd anare ge are getting together on skating excursions tn cities all aver the world. Far example, Tokyo hi night group skating that attracts hundlreds of people. The market tends are showing cominued ‘growth in all directions of skating. 2.1.4 Market Growth With the price of skates going down due ta eaimpeiition by so many skate companies, the market has hud steady growih sant the worked, altouagts sales Trae showed oy tre ala A ii wos, tone al my diseovenlig-—aiid in-many cases feedlscave ie howe icine fo shai 2.2 SWOT Analysis the following SWOT iol ung weaknesses within th Hes and threts facing Meg 2.2.1 Strengths + Invdepth Industry experience and insight 4 Creatlve yet prnetical product designers ‘The use ofa highly efficient, exible business riot uti, ingdirect customer sales and distribution 2.2.2 Weaknesses ©The reliance on outside capi business © AN lack of retallers who ‘euistomer to generate bra © The diffeulty of developing brand awareness as a starc-up company I necessary (© grow the work face 10 face with the and product awareness 2.2.3 Opportunities Participation within a growing © Decreased product costs through economies of scale © ‘The ability to leverage other industry participants’ market ing efforts to help grovr the general market 2.2.4 Threats Future/potential competition from an aleeady-established market participant © Acontinuied sump in the economy that could have anes tive effect on people's spending of discretionary incon fimmess/recteational products © The release of a stndy tha ealls into question the safer of skating or the inability to prevent anajor skating.induced traumas 2.3 Competition Vegasis Sports International is forming ‘own market Although how are a fev" companies tha da make sails a Folls that a fow skaters ate using, Pegasus isthe only toatl th! ist signed! for and by skaters. ‘The few coup salle the market are not designed for skating but for windsutl ‘ing or for skateboards, In the case of fois, storage st a ing ate nor practical. ‘Thee are (ifferont indirect competitor’ who are manwfact ers ofthe actual skates, After many yeast tho markets these eanyauties have yet to became direct €0" peal by manufacturing accessuries for the skates that the make,_— 2.4 Product Offering Pegasus Sports International now offers sev © The first product that has bees cover for the wheels and frame inline skates, which allows skaters to enter places that normally waitld nov allow thom in with shales on, Bladeftoots come with asmal pouch and beli that converts oa well-designed skate carrer ‘The second product iy SkateSais, cally designed for use while sus hn become: ‘ral products Nn developed is Bladeftaats, These ails are specif skating Feedback that Pegg Fectived from skaters indicates skaievailing could ‘hing this product is ©The third produ reid, will be in production by the end of the year, Other ideas for products are uns ‘opment but will not be disclosed until Po Hiem through p er devel ‘pasuis can protect ending patent applications 2.5 Keys to Success ‘The keys to success are desi igning and producing products that meet market demand, 11 addition, Megasiss must ensure total lumer satistuetion. If these keys 10 success ate achieved, it will become a profitable, sustainable company, 2.6 C Asus erie ical Issues business, Pegasus is sil in ‘Issues are for Pegasus to: arly stages, The Establish liself as dhe premier skatiaye accessory company: © Pursue-contralled goa will never exc against re thatdiciatesthat payroll vl the revenue base, This will help proteet sions Constunily monitor customer satisfaction, en: the growth strategy wil Istoctton he rng that omipromise service and sat 3.0 Marketing Strategy ‘The key 10 the marketing strategy is focusing: an the speed, health and tess, and recreational skaters. Pegasus can cover about 80 percent of the skating market hecatse it pro- duices products geared toward each segment. Pegasus is able to axldress all of the different segments within the market hhecause, although each segment is distinct in terms of its users and equipment, its products are usoful (0 all of the different segments, 3.1 Mission Pegasus Sports International's mission is to provide the cus- omer with the finest skating accessories available. “We exist to artract and maintain customers. With a strict adherence to this maxitn, success will be ensured. Ourservices and products will exceed the expectations ofthe customers” 3.2 Marketing Objectives Maintain postive, strong growth each quaner (notwith standing seasonal sales patterns) Achiew a steady increase in market penetration Decrease customer seq quarter. jon costs by 1.5 pervent per 3.3 Financial Objectives Inerease the profit margin by 1 percom per qu efficiency and economy-al-scale ein Mainiain a significant reseascly anh devel (as @ percentage relative t9 sales) 1 developments. Achieve a double- to triple-digit gens three years 3.4 Target Markets With a poy Ad world skating market of 1 millon that ts steaully growing (statistics released by the Sporting Goods 11s Association), the niche has been created, Pega- {s to expand this matket by promoting ShateSailing. The breakdown of participation in skating is as follows: 1+ percent speed (growing). 8 percent hockey (declining), 7 per- cent extreme/aggressive (lectining). 22 percent finess (nearly 7 million—the lastest growing), and 61 percent recreational (first-timers), Pegasts’s produets are targeting the fitness and recreational groupshecause they are the fastest growing, These roups are gearing themselves toward health and fitness, and combined they can easly grow to 85 percent (or 26 million) of the market in the nex five years, 3.5 Positioning Pegasus will position itself as the premier aftermarket skat- {ng accessory company. This positioning will be achieved by leveraging Pegasus’s competitive edge: industry experience ‘and passion. Pegasus is a skating company formed by skaters {for skaters. Is management is able to use its vast experience ‘and personal passion for the spart to develop innovative, use- ful accessories for a broad range of skaters 4.0 Marketing Tactics ‘The single objective of the marketing program is to position Pegasus as the premier skating accessory manufacturer, serv. lng the domestic market as well as the international mar- ket. The marketing prograrm will sek to first create customer awareness concerning the offered products and services and then develop the customer base, Specifically, Pegasus's mar- keting program is composed of the following approaches to Product, pricing, distribution, and comraunications,ee ee ee a Oe 4.) Product JofPegssuss currently developed products have patents cand Toca athet esearch bleach there rer nse predic Pegs all achieve fax sg mt market penetration through a soll business model, long oeeeeler ement team that fy able fange planing. snl a strong management team that cme esi ptt The tie ea rranagemtent team have mare than 30 yexts of cabin wre cenal and Win experienc. TH eiteneveExperence Frovides Peas with the emplriest information aswell as the inarket products 4.2 Pricing “This will be based on & per-product retail price. Because of the advantages of selling directly, higher margins ean be achieved with premium pricing that will still appeal to cus: tomer segments 4.3 Distribution Pegasus wil sell its products initially through its Web: site. tn addition 10 allowing for higher margins, this direct-to-the- consumer approach will allow Pegasus to maintain a close relationship with customers, which is essential for producing products that have a true market demand, By the end of the year, Pegasus also will have developed relationships with dif forent skate shops and will begin to sell some of its products through retailers. 4.4 Communications ‘The message that Pegasus will seek to communicate is that it oilers the best- designed, most useful skating accessories. This. ‘message will be communicated through a variety of methods, The frst wil be the Pegasus Web site, which will provide a rich source of product information andl offer consumers the oppor tunity to purchase. A lot of time and money will he invested {nthe site to provide the customer with the perception of total Professionalism and utility for Pegasus's products and services, The second marketing method will be advertisements placed in numerous industry magazines. The skating industry | supported by several different glossy magazines designed to promote the industry as a whole. In addition, a number of smaller periodicals serve the smaller market segments within the skating industry. The last method of communication is the Use of printed sales literature, The two previously mentioned ‘marketing methods will create demand for the sales literate, ‘which will be sert out to customers. The cost of the sales lit erature will be faitly minimal because it will use compiled Information from the Web site. the alrendy- 4.5 Marketing Research Pegasusis blessed with the Asian ety where skating i taleverage thisopporiune different skaters wha live ood fortune of being located jn an popular: Tokyo, Japan, Iwill he able Jocatlon hy working with many atthe Inthe area, Pegastis was able t0 test nfs pres at ny wih it inca ohn th hed skaters, but alyo wlth the many liber de Mw ble users facated In Tokyo, The extensive yr “1 Fae de eariety of users proved PSU ugg Met eck a as es ‘th 5.0 Financials , er the i evo Pet slag rhis section will offer the finan db : Canarketing netvlies. Peggisus will adddeess brea) yng) etn tees a expense FOTECANL AL Ie hy, these activities link to the marketing strategy. 5.1 Break-Even Analysis “The breakeven analysis (able 21) indicates i S74 will be required In monthily sales revenue tty the break oven point Table 24 BreokEven Analysis a ‘Monthly Units Break-Even. ry Monthly Sales BrookEven $ 7.760 ‘Assumptions: Average Per-Unit Revenue $125.62 Average PerUnit Variable Cost $ 2261 Estimated Monthly Fixed Cost 5.2 Sales Forecast Pegasus feels hat the sales forecast figures are conservative twill steadily increase sales as the advertising budget allows. Although the target market forecast (Table 2.3) listed all ofthe Potential customers divided into separate groups, the sales forecast (Table 2.5) groups customers into two categories: tee reational and competitive. Reducing the nuumber of categories allows the reader to quickly discern information, making the chart mote functional Table 2.5 Monthly Soles Forecast Sales 2016 2017-2018 Recreational $455,740 $598,877. $687,765 Competitive $72,918 $95,820 $110,042 Toll Sales, $528,658 $694,097 $797,807 Direct Cost of Sales 2016 2017 2018 Recreational $82,033 $107,798 §123,798 Compete $13,125 $17,248 $19,808 Subtotal Cos of Solos $95,158 $125,046 $143,608—_— Table 2.6 Milestones Plon Milestones Stor! Dale Ln Date Baden Depron Marketing plan completion Wie Qo 40 Marken Web site completion Vie asyie 420,409 Minbernn Advertising campaign #1 Wise 6/30/16 $2,500 ™ a Advertising campaign #2 VIO R707 V6 $4,550 “ Development of the retail channel WA/16 N/20/16 $0 Totals — $28,450 5.3 Expense Forecast 6.2 Marketing Organization The expense forecast will be used aya toot ww keep the depart: Helens Lt will be tesppnsibie fr the niar ment on target and provide indicators when conections/ modifications are needed forthe proper imple marketing plan, we 6,3 Contingency Planning Difficulties and Risks visihility, a function af being. anf 6.0 Controls tetchased start-up organizanion The purpose of Pegasus's marketing plan isto serve An entry inta the market yy an already established marker for the organization. The following arcas will be monitored to compettior gauge performance Revenue: monthly and annual Worst-Case Risks Expenses: monthlyand annual Determining that the business cannot support itself an 2 Customer satisfaction ongoing basis New-product development © Having to liquidate equipment or intetlecnaat capital cover liabilities 6.1 Implementation ‘The milestones identify the key marketing programs (Table 2.6). itis important to accomplish each one on time and on budget (Tabie27). Table 2.7 Marketing Expense Budget 2016 «= 2017,— 2018 Web Site $25,000 $8,000 $10,000 Adveriivements $8,050 $15,000 $20,000 Printed Moleriol $1,725 $2,000 $3,000 Total Sales ond $34,775 $25,000 $33,000 Marketing Expenses Percent of Sales 6.58% 3.60%, 41am Contribution Margin $398,725 $544,652 $621,202 Contiibution 754% 70.40% 77.86% Deira a teem Seutce biped lo ough pla prose yp ao equal lg Bs Aha elt, Lain wd Pe fl Seon Peyred by