Fall 12

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Robert Seymour

Table of Contents

Executive Summary 3

Company Overview5Goals 5

Strategic Assets 5Core Competencies……...………………………………………………………………………………………….….6

Market Overview………………………………………………………………………………………………..………………….7Customers…………………………………………………………………………………………………………………..7Collaborators……………………………………………………………………………………………………………...8Competitors………………………………………………………………………………………………………………..9Context……………………………………………………………………………………………………………………..10

SWOT Analysis……………………………………………………………………………………………………………………..12Strengths….………………………………………………………………………………………………………………12Weaknesses….…………………………………………………………………………………………………………..12Opportunities…………………………………………………………………………………………………………...12Threats….………………………………………………………………………………………………………………….12

Target Customers….……………………………………………………………………………………………………………..12Goal….………………………………………………………………………………………………………………………………….14

Ultimate Goal……………………………………………………………………………………………………………14Market Objectives….…………………………………………………………………………………………………14

Strategy….……………………………………………………………………………………………………………………………15Target Market….……………………………………………………………………………………………15Value Proposition….………………………………………………………………………………………16

Tactics….………………………………………………………………………………………………………………….16Product………………………………………………………………………………………………………….16Service….……………………………………………………………………………………………………….16Brand….…………………………………………………………………………………………………………17Pricing and Incentives…………………………………………………………………………………..17Communications….………………………………………………………………………………………..17Distribution…..………………………………………………………………………………………………17

Implementation………………………………………………………………………………………………………17Infrastructure……………………………………………………………………………………………….17Processes………………………………………………………………………………………………………18Schedule….…………………………………………………………………………………………………….18

Control….…………………………………………………………………………………………………………………18Performance Evaluation….…………………………………………………………………………….18Environmental Analysis………………………………………………………………………………..19

Work Cited………………………………………………………………………………………………………………20Exhibits……………………………………………………………………………………………………………………21

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Executive Summary

Our company is the only designer and manufacturer of the all in one board / storage rack for action sports enthusiasts called the 3B Board Rack. These storage units are totally adjustable from every joint in order to accommodate for every type of sporting equipment. This storage unit appeals to the organizational, aesthetic, and convenience needs of the consumers in the action sports industry.

Our product is set out from all the rest on the market today because of the versatility it has to offer. Most storage units on the market today only offer one width, with no adjustability. As for the vendors who carry our product in their store, it offers another dimension to the way they can display their product, while displaying our units. It will attract attention due to the fact that there is nothing like this currently on the market.

Our target customers are water and winter sports enthusiasts between the ages of 18 and 24 that reside in the southeast United States, as well as the west coast. The reasoning behind this is because that is where most of the action sports take place in the United States. The western portion of the US offers a little bit of everything; snow in the winter and good weather for water sports in the summer. The southeast is the epicenter of water sports all year round, so we will put extra emphasis on our sales efforts in this area.

We see this storage unit becoming the new norm in action sports storage. We hope to start seeing a return within the first two years. We will begin the sales of this unit to our vendors and distributors on the first of 2013, and plan to have direct customer sales operating after the first six months.

The 3B Board Rack will be a single stud mounted rack that has enough room to hold three separate boards with the base models, with additional levels available for purchase. Each level can be customized in order to accommodate for whatever type of board the customer would like to store on the 3B Board Rack. As a company, we plan to develop a relationship with all of our customers. In order to carry out this relationship, we will be offering a frequent customer program that gives the customer an incentive to continue doing business with us.

We plan to reach our customer base by means of print ads for the most part. We plan on having a partnership with magazines such as Transworld Magazines, as well as Alliance Wakeboard Magazine. Print ads will be most beneficial to our product do to the wide range of customers they will reach, as well as the life span that print ads hold. Also with print ads, it gives us the ability to connect with each of the message recipients on a more personal level.

Due to the fact that there is nothing like this currently offered on the market, we would be able to penetrate the market relatively easily. The benefits that our product offers consumers is unmatched by anything currently available. We believe that customers will catch on very quickly, and establish us as a well-known brand in the industry.

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The following marketing plan shows how we expect to carry out our operation and successfully launch a new innovative product into the market in early 2013.

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Company Overview

GoalsIn the long term, I hope to grow this company as a whole in many different ways. With a product in the niche market of action (board) sports, I hope to create a valuable brand image with customers in the action sports world. Also, with a product offering to this particular market, I have an immediate advantage to most other offerings that provide the same functional benefits. Members of this market are very dedicated to their products, and I believe this will help me develop a sense of brand loyalty throughout the industry.

With the base product model, I hope to have sales of 4,500 units, $224,955, in the first quarter. As the first year of sales continue, I believe that the product will begin to build momentum and sales will increase throughout the year. I hope to have sold a total of 31,500 units, worth $1,574,685 (This data excludes the additional levels sold at $14.99). As the first year of sales go on, I hope to build strong relationships with not only the customers, but the suppliers as well. In doing so I hope to cut my margins by up to 10%, saving thousands of dollars on production costs.

Once established in the marketplace, as many products do, the sales of our storage units may slow. One of my goals is to counteract this by expanding our currently narrow product line by offering different attachments. These attachments could consist of bike racks, storage shelves, a drying rack, or any type of storage system for all types of sporting goods. The possibilities are endless with this product, which is why I believe it has such a good chance at succeeding in the marketplace.

Strategic AssetsWith a new offering, come many obstacles in gaining momentum selling the product. With that being said, I anticipate a strong relationship with suppliers, distributers, even all the way down to individual customers. Beginning with the suppliers, I believe we can begin an automatic reorder system with almost any plumbing supplier. The plumbing supplier would be able to supply all of the parts needed to construct each individual rack (the pipe to construct the rack, as well as the joints to connect all of the pieces). One link down the chain, I see a strong relationship developing with all of our customers, whether they’re distributers or end customers. Developing these relationships will be pivotal to the success of not only this product, but also the entire business operation.

Another key to this product succeeding in the market is protection. I plan on protecting the sliding storage rack with a design patent. With a design patent, according to the U.S. Patent and Trademark Office, competitors will not be able to make, use, or sell this particular design for a period of fourteen years. This protection will be key for desired performance of this product on the market.

Developing a loyal customer base will play a big role in the success of this storage unit as well. The desired customer base will be those who are involved in the action sports industry, seeking the benefits of organization, aesthetics, and convenience provided by this product. Not one of the pieces of sports equipment that would utilize this product would be

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considered inexpensive. I believe that will benefit the sales of this product because the consumers in this industry spend a lot of money on their equipment, and would love to display and protect their products in a realistic way. With that being said, this product must also be very reliable. It must be able to pass different capacity tests, so the consumer is not wary about hoisting thousands of dollars worth of equipment off the ground. To ensure this, it must be manufactured by a small group of specialized employees, and a manager to oversee each unit as it exits production.

With such an extensive production from start to finish, it will take a decent amount of capital to fund the operation. I intend to fund the process with my own capital, as well as that acquired from other investors in this product. I believe there will be enough to fund the beginning phases of production, but we will eventually rely on unit sales to help keep the units in production.

Core CompetenciesThroughout the production process, certain competencies will be key in the success and ease of the production of this product. First of all, the process must be streamlined and organized. Without an organized production process we run many risks, the worst of which would be defective units. Having an organized production process will reduce weight on the shoulders of the employees that are hands on with the unit, as well as those at the production management level. Employees will have his or her specific, specialized position that makes the process seamless.

Second, customer focus will be recognized in every step from placing orders, until the product is in the hands of the final consumer. Keeping customer focus at the forefront of the mind of everyone involved will make sure that we are producing the best quality products that we are capable of. Knowing how the customers needs can best be met will help keep our standards up in every aspect of production.

Next, forward thinking will play a big role in our success. Being able to answer the question, ‘What comes next?’ will be key in the production and sales of this product. Knowing what the next step in the business process consists of will ensure that we have completed to previous step to the accepted standard. Without the answer to this question, our entire production and business process would be in jeopardy.

Lastly, customer retention and acquisition will be key to the success of this product. First, customer retention comes into play mainly with our distributers. These distributers, mainly specialty shops, will have to consistently reorder our product and be able to sell their units to the end customers. As for customer acquisitions, this applies to the sales we will do directly to the consumers. Most of the time, customers are only going to buy one base unit, and then the possibilities of secondary level purchases are endless. In acquiring more customers, we will be able to sell more base models, which is where most of our revenue is located.

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Market Overview

CustomersCustomers of this particular product will be located in the action sports market. These customers will be searching to fulfill one or several of the benefits provided by this product. The benefits that this product provides are convenience, aesthetics, and organization. Going a step further than benefits sought, each of the sections can be further broken down by geographic location as well as demographics. The water sports industry creates $40,296,370,000 dollars each year alone, and the winter sports industry creates $58,672,760,000 each year, as displayed in exhibit three. As you can see in exhibit one and two, both of these industries are more prevalent in different areas of the United States. The geographic area that they share, which I believe is where we should target customers, is the west coast of the United States. In both of these industries, this is the area where more money is spent by consumers on equipment for their respective sports than in any other geographic area.

The second half of customers that must be considered are the distributers that we will work with. The main distributer that I anticipate benefiting our distributer is Dick’s Sporting Goods, owning 13.6% of the market in the sporting goods industry, according to IBIS World 45111. IBIS World also mentions a sporting goods chain called The Sports Authority Inc. that owns 8.8% of the market. I believe working with chain retailers such as Dick’s Sporting Goods and The Sports Authority will help expose more consumers in our designated market to my product.

The customers who will be purchasing this product will be looking to fulfill either of the needs provided by this product, which are aesthetics, convenience, and organizational needs.

The customers who will be purchasing this product in order to satisfy the aesthetic benefit provided would be those who are merely looking for the decorative aspect. This storage unit is something that catches your eye when you enter the room because of they way customers are able to display their equipment. Typically, these customers would be a little bit older than the bulk of those purchasing this product, closer to the age of 28 according to Surfing Magazine’s subscriber information. Also, these customers would be people who wakeboard or surf less than the average number of times than a typical athlete would per month, which is currently twelve days out of every month.

There are customers who will be purchasing this storage unit solely for the convenient benefit provided. This rack makes the storage of all of your action sports equipment easier than it has ever been before, and that is something that consumers will begin to realize. I see these customers as the local board shops and dealers that rent or sell equipment on a regular basis. Convenience is something that all of the dealers are looking for, mainly because they must interact with their inventory and consumers in a way that lets them operate more efficiently. These customers will be ones who most likely do not participate in their sports ‘heavily’ but still have immense interest in the sport. These customers are also people who have a lot of equipment that they have no way to store in a way that suits

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them, and that is where my unit comes into play. The age range for those people who are purchasing this product based on the convenience provided are also probably going to be a little bit older than the average action sports participant, most likely around the age of 25 – 28 years old.

Lastly, there are customers who will purchase this unit only for the organizational benefits provided. Customers who are buying solely for this benefit will be those that have a large amount of equipment that is used extremely frequently. I see these customers as the action sports enthusiasts that just have a lot of excess equipment. They are the ones looking for a way to organize all of their equipment in a way that makes sense to them so that they know where everything is when they need it. These customers are going to be in the age range of 18 – 24 years old, and be heavy users of action sports equipment. According to ‘Surfing Magazine’, these users will be ones who typically spend about $820.00 on equipment each year. CollaboratorsConsumers who regularly participate in board sports usually interact on a regular basis with one of three locations to purchase their equipment. These locations are: (1) local board shops, which provide sport specific products, whether it be wakeboarding, snowboarding, skiing etc.; (2) Marinas or Shops on the water or on the mountain, these marinas and shops provide many services to consumers on the water as well as on the mountain, and have great potential to expose consumers to our product; and (3) Cable parks are the alternative to riding behind the boat in the water sports industry. These parks are most prevalent in the Southern section of the United States, but would be a great opportunity for consumers to get a look at this product in use.

- Local Board Shops – These shops sell everything that your typical action sports enthusiasts need to participate in their sport. Whether it is a snowboard shop at the bottom of the mountain, or a wakeboard shop near your local lake, they both provide the same services to their customers. Having my product in use, and for sale, in their shops would give our ideal target market a chance to see this product in use for their particular sport.

- Marinas – Marinas would be a perfect chance to expose a different group of consumers to our product. Though it would not be considered the ideal target market, it would still be a chance to expose those in the same interest group to our product. Typically those who partake in any activity on the water, not just board sports, frequent marinas. Exposing everyone on the water to our product would begin the exposure of our product by word of mouth on the lake.

- Cable Parks – Cable parks are the alternative to wakeboarding, kneeboarding, or skiing behind the boat. According to WakeScout.com, there are currently 56 cable parks in the United States, with 27 located in Florida, Texas and California. Having my product in these locations is a must. The consumers who frequent these locations are the ones who care enough about their equipment to spend money to display, organize, or store their boards.

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Each of these locations would come in contact with consumers searching either the convenience, aesthetic, or organizational benefit provided by this product. Collaborating with these three types of locations would benefit my company as well as the collaborators in terms of sales, as well as drawing customers into the secondary location.

CompetitorsCompetition in the board storage market originates from one of three destinations: (1) home made board racks (which would be considered an alternative), (2) board racks offered by Body Glove, and (3) pre-made board racks offered by Hyperlite.

First, the homemade board storage racks. I consider these to be more of an alternative, rather than a competitor just because they are not something that is sold on the market. Though these racks can be made to fit your specific equipment and unique specifications, there are reasons why my product would be a much better alternative. First, these racks are not easy to build. With many different parts coming together, these board storage racks are rather complex, and can be difficult to build for your everyday consumer. Also, making sure these racks are strong enough to hold all of your equipment is a must. By the time you are done figuring out how to build the rack on your own so it fits your equipment, gathered all of the resources needed to build it, and made sure it is sturdy enough to hold your equipment, you would have sacrificed enough of your own money and time to justify spending a little bit extra on one of my units, that is ready to go right out of the box. I would consider this competitor a strong intensity alternative to my product.

Second, there are board racks that are readily available on the market today, but these units are only angled toward one type of storage, and do not offer additional storage levels. Body Glove, a well-known name in the water sports industry, is a company that currently offers a storage unit that is not adjustable. These units are not only extremely expensive, $99.99, they only offer enough storage space for two boards of your choosing, in a way that does not allow you to display the boards in the way of your choosing. . Also, these racks are made of pre-cut metal, so if your board is too thick for the inserts, there is no way your board will fit in this unit. What these units are lacking is personality, which is where my storage rack comes into play. I would consider this competitor a medium intensity competitor to my product. As a company, Body Glove brings in sales of about 1.1 Million dollars each year. Their product is positioned toward the younger demographic of the sport, due to the fact that it is not very specialized. The people that would be interested in this product would be ones who spend less than the average, $820 per year, on their equipment.

Lastly, Hyperlite offers stationary board racks that are very similar to those offered by Body Glove. Hyperlite is offering a most personalized experience with their version of the board rack, positioning their product toward the higher income consumers. According to Wakebaording Magazine, which is one of Hyperlite’s largest advertising avenues, almost 38% of all readers reside on the east and west coasts of the United States. Also, the customers that Hyperlite are targeting by advertising in Wakeboarding Magazine are riders that ride just over five and half months out of each year. Hyperlite has what they call the

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claw wakeboard rack that is offered for $64.99, and it only holds two boards. Neither of these levels are adjustable due to the fact that it is made out of fabricated metal.

Though companies like Body Glove and Hyperlite offer storage units there are many drawbacks:

Unattractive – The units that Body Glove offers are not something that consumers see as having an attractive appearance. These units are plain, sheeted metal and have no beneficial aesthetic properties to them.

Price – Though these units serve their purpose, they charge an outrageous price for what they are offering. These units are prices at $99.99 in most retail locations.

Protection – As previously stated, these units offer no protection to the boards that they hold. They are made of sheeted metal, so the potential to scratch and mar the boards which it holds.

Space – These racks only have the potential to hold two boards, which is extremely irrational. The people who would be willing to spend $99.99 on a storage unit for their boards are extremely likely to have more than two boards they want to store.

All of these problems listed above are ones that are corrected with my product offering. Body Glove and Hyperlite currently only offers the unit either through their website, or through larger water sports retailers such as Overton’s. These units are only marketed towards wakeboarders, which is extremely limiting considering how many potential customers are out there in different board sports.

ContextI believe my product is the next step forward in action sport board storage units. In the sporting goods market, there is an expected annual growth rate of 1.9% between the years 2012 and 2016, according to MarketLine. This means that consumers will have increased disposable income they will be willing to spend of products just like the one I am offering.

There are also some technological innovations that are taking place in the retail world that could help my product sell better. With the use of RFID in retail outlets such as Dick’s Sporting Goods, as a supplier, we will be better connected with our distributers and be able to keep track of how many units are moved in and out of each establishment at any given time. At first glance, it seems that this only benefits the ones selling the product, but it benefits the consumers more than anyone else. Those looking for this product will not have to worry about it being in stock at their local distributer, because RFID will help control inventory amounts, and make sure we, as a supplier, have sent enough units out to our distributers.

Board sports are growing at an astonishing rate. As an employee of this industry, I can verify that more people are beginning to participate in all types of board sports. With this trend in consumers between the ages of 18 and 24, my product offering is entering the market at a perfect time. Wakeboard sales for the year of 2012 have been above the industry average, which means there is a need for storage units for all of the boards being

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sold. As this trend in board sports continues, the market will continue to grow for items such as board storage units, which is great news for products like the one I am offering.

Regulations are going to play a huge role in this products ability to survive. Something that is vital to the success of this product is going to be the protection of this intellectual property. Patents and trademarks are going to be something that will have to be done immediately. The patent will help protect the design of the storage unit, so that no other producers can manufacture this type of storage rack. The trademark will help distinguish my brand from the competition.

Lastly, physical factors will impact this product from production all the way through until consumption. Having the resources available at the production stage is obviously the first and most important step in the process. The storage units will be made from a base layer of schedule 40 polyvinyl chloride (PVC) pipe, which is a man made, chemically formulated pipe. Having access to this essential to production, but should not be an issue when it comes time for production. Also, climate plays a large role in many markets. Fortunately for me, climate only changes to market looking to purchase the storage unit. In the summer, when the climate is warm, mainly water sports enthusiasts (wake boarders, water-skiers, surfers) will be purchasing this unit. When it begins to cool down and winter begins, our market begins to shift to more of the winter board sports such as snowboarding. I believe that the fact that there is no “off season” for this product will be a huge factor in its success.

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SWOT Analysis

Target Customers

With a product offering such as this storage unit, I believe it will be the most successful unit on the market. The target customers, better displayed by exhibit one and two, consist mainly of water and winter sports enthusiasts that reside along the west coast as well as the south eastern portion of the United States, between the ages of 18 and 24. I believe these customers will find that the strengths of this product; it will hold any size board, it is totally customizable, and the benefits filled (convenience, aesthetics, and organization); make it far superior to its competitors. Having this competitive advantage will definitely give this product an edge when the target customers are faced with a purchase decision. The way I plan to work with collaborators will maximize value for this product, and showcase the product in a way that shows how exciting and new this product truly is to consumers in the action sports industry across the United States.

According to data collected from ‘Wakeboarding’ as well as ‘Surfing’ Magazines, their subscribers correlate directly with our target customers. We hope to target people who participate in their particular sports as close to six months out of the year as possible, and have been participating in their respective sports around 4 years. Majority of the subscribers, almost 38%, of ‘Wakeboarding Magazine’ reside on the east and west coast combine, which will be a big area to focus the advertisement of these units. Majority of our target customers will be male, according to ‘Surfing Magazine’, 77% of their subscribers are male, and only 23% are female. Lastly, being in local board shops will be extremely important to the success of this product because over 80% of action sports enthusiasts rely on their local board shops to purchase their equipment.

This particular product is incredibly compatible with the target customers needs, due to the fact that it is so versatile. With the trend of action sports growing in today’s society, I believe that this product will fit right in with the consumer needs in this target market. The previously described target customers will see this product as another item that will help solve functional needs in their everyday life. Being immersed in something such as action sports is more of a lifestyle than a hobby, and that is why I believe consumers will be so attracted to a product such as this. Working with collaborators such as marinas, board shops, and cable parks will help give our target consumers a first hand look at the product, and show that it fits right in with their lifestyle. Having our product in use, and for sale, in these locations will help expose more of the target consumers how this product can become part of their lifestyle. As mentioned in the SWOT analysis, I believe this product would become even more attractive to consumers when partnerships with established brands already on the market. Having units that have brand logos and patterns on them would keep customers loyal to their board brands, as well as spark their interest in my product.

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Other options that were considered when designing this product, was a storage unit that only adjustable horizontally. This unit would have been appropriate for the same target customers, but it would not be as effective as the proposed product. The unit that only adjusts horizontally would still be able to fit all types of wakeboards and snowboards, but would not be able to adjust for thicker boards, like surfboards. Going with the storage unit that is totally adjustable (vertically, horizontally, as well as the angle of the boards) opens up this product to many more uses, making it a much more reasonable product on the market. It opened up my target customers to a whole different industry, not to mention the attachments that could become available to accommodate for all different types of sporting equipment. I believe that the target customers will be much more satisfied with the fully adjustable unit because it gives them a sense of power in how they display their equipment, as well as a bit of uniqueness, knowing they can organize or display their product in different ways than everyone else.

These customers that are being targeting will definitely have a choice that they make when purchasing a storage unit like mine. They can choose between making their own units, a unit that is not adjustable to their liking, or my unit, which is going to accommodate all of their equipment. This unit will positively impact everyone that it comes in contact with all the way down the supply chain. From suppliers all the way to the end customers, everyone will benefit from being a part of the supply chain of this product.

Goals

As an over arching goal, we hope to sell 31,500 units, worth $1,574,685. Though these may be high numbers, they are extremely realistic. With our distribution network, and our ability to sell straight to the consumer, this goal gives us something to work toward. We hope to be in every cable park throughout the United States, as well as all of the major water sports retailers.

Ultimate GoalAs previously stated, we hope to sell 31,500 units, worth $1,574,685 within the first twelve months of operation. With each unit holding a manufacturing cost of about twelve dollars, we plan on a net income around $1,196,685, which is before wages have been paid. Within the second twelve months of operation, we hope to increase all of these figures by fifteen percent, as our product begins to gain momentum in the action sports community.

Market ObjectivesWith this product offering, we are targeting those involved in the action sports world, between the ages of 18 and 24. These customers are typically extremely passionate about their chosen segment of action sports (whether it be wakeboarding, snowboarding / skiing, surfing etc.). We hope to reach at least 35% of all action sports enthusiasts within the first year. In doing so, we will be able to create awareness of this product by having them in use in board shops and retailers all over the country. The benefit of having additional levels that are available to customers is the keep customers coming back and staying in touch with our company.

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From the launch of this product our collaborators will consist of board shops, cable parks, sporting good stores, and large water sports dealers throughout the country. With such a substantial collaborator network in place, we do not plan to expand our collaborator network, but within our first year of operation we hope to strengthen our relationships with all of our collaborators. In doing so, we will make the sales process go smoothly from start to finish. With strong relationships with collaborators, we will be able to establish a sense of trust, understanding, and familiarity between the two of us.

As a company involved in the manufacturing and selling of tangible goods, we have a few internal objectives that are important to us as a company. First, we hope to lower manufacturing costs by up to ten percent at the end of the fourth quarter of production. As we produce more and more units, we will be able to streamline our production and make the process much more efficient. As with any production company, you run the risk of mistakes throughout the process. We hope that at the end of the first year of production, we will be able to reduce our defective units by up to fifteen percent. A lower number of defective units will not only save us money as a company, but also keep customers happy with their initial purchases. Lastly, within our company, we hope to decrease our throughput time per unit by up to ten percent within the first year of production. As we produce more and more units, our employees who are hands on with the units will gain experience and be able to produce units at a much faster rate.

With such a new and innovative product, we must do everything that we can to protect our product design as well as our intellectual property. We hope to have every aspect of this product that can be protected, protected under federal patent laws. We hope to have the patents filed as soon as manufacturing beings, and hope to have the patents approved at the end of two full years of production. Patents can take a long time to be approved or denied based on many factors. For example, how many other patents are waiting for approval, and how long the negotiation process takes place can both influence the length of time it takes for a patent approval. Also, our collaborators will help us have a competitive edge against our competitors. Having the board shops as well as the distributers carry our product will give us a competitive edge. Having this excellent retail location secured will increase the barriers to entry in this market, and boost our competitive advantage greatly.

Strategy

Target MarketThe target market for the storage unit consists of action sports enthusiasts between the ages of 18 and 24, seeking the organizational, aesthetics, and convenient benefits provided by our product. Majority of these customers we will serve will be located close to large bodies of water, or near ski slopes. Something else to consider is the seasonality of the sports we are targeting. Most sports we are providing benefits to have an off-season, meaning that the weather does not provide the right conditions in order to partake in the sport. This is something that we cannot look over when it comes to allocating expenses, such as advertising, throughout the year.

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Throughout the process, we will be working with different people throughout the supply chain in order to make this work smoothly. The goals for everyone on the supply chain is to have the units made, shipped, and sold to the final customer without a hitch. In doing so, we will be able to achieve maximum efficiency and be operating to our full potential.

The strategic business unit responsible for this offering is my company, producing the storage units. Throughout the production of these units, there are personnel that are relevant to the entire operation. First off are the buyers for our company, they are responsible for purchasing the materials needed in order to manufacture the storage units. After the buyers, come the hands on manufactures of the product. They are responsible for physically putting together the products, and making sure that they are ready to be delivered to the next step down the value chain. Lastly comes the end customer for our business, whether it be the board shops, distributers, or the customers who purchase the units directly. All of these people are vital in the success of the production and sale of every one of the units produced.

In the market, there are two main competitors that have similar offerings to the storage units. These two main competitors are home made storage units, and pre crafted stationary units. Though these products can offer similar benefits to the product we are offering, they do not provide the same utility that my product does. First of all, my storage unit is adjustable in every way possible, and there is nothing like that on the market right now. Potentially, a customer could make something that would fit their specific boards, but nothing that would be able to accommodate every type of board that they have.

Value PropositionFor customers, my storage unit provides aesthetic, convenience, and organization for customers that are involved in action sports looking for a new way to store their equipment with a unit that will fit boards and products of all different shapes and sizes.

For collaborators carrying this product, my storage unit will drive in customers, described above, into their business and increase their sales potential exponentially with this new and innovative product that the market has never seen before.

For the company, this storage unit provides jobs up and down the value chain, opens new doors to many different products, and keeps employees interactive in the action sports world by working for a company that is so tightly knit within the industry. People inside the company will have all sorts of chances, and be encouraged, to continue to stay involved with the sports in their community as well as around the country.

The value held by stakeholders as well as end customers will be their ownership of the latest technological advance in action sports storage. The value shared by all stakeholders is expressed by the benefits provided from the product that we offer.

Tactics

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ProductThe equipment storage unit that I am offering is something that the action sports market has never seen before. The storage unit is a single stud mounted unit that will hang directly on the wall. With one center spine running vertically, it will come with three levels that can be spaced out as far as 36 inches vertically. Each level consists of two ‘arms’ that protrude at a 45-degree angle. These arms are also adjustable up to 36 inches horizontally, making plenty of room for any type of equipment being placed in the unit.

The additional levels that can be purchased will consist of an extension that attaches to the bottom of the main spine, and will have the two ‘arms’ that are also adjustable 36 inches horizontally.

Both the base model and the additional levels will come ready to be hung, with all the hardware included. Each unit will be rated up to 150lbs of equipment, which is more than enough for any action sports enthusiast.

ServiceWe will be in close contact will all of our collaborators and plan on backing our product under all circumstances. After a board shop or wholesaler signs on to sell this storage unit, we will hold an information training session at their location to inform the sales associates working at these location of all the benefits of our product. We want to make sure that then end customer is fully informed of all the benefits provided by our product, and we believe this is the best way to do that. Also, whenever we have a new model of this unit, we plan on sending a team of representatives to these same locations to update their sales associates on the benefits of our latest models.

BrandWe will market our storage unit as well as the additional units under the name 3B Storage. We have filed trademark application with the United States Patent and Trademark Office, and will have our brand and logo protected by the time we begin to sell units. We will market all of our products with the 3B Storage logo visible, displayed in exhibit 4.

Pricing and IncentivesMy all in one storage unit, base model, will be available to customers for $49.99 at their local board shops, distributers or directly through the company. The additional levels, which are sold one level at a time, are sold for $14.99 through the same channels. For each purchase directly through the company, customers will be added to a database and will have their own account. As they spend more money on our products, they will accrue points, which convert to cash toward their next purchase. For collaborators we will offer a bulk discount of up to 10% depending on how many units they order. Company personnel will be able to purchase the units at 20% lower than retail value. Also, each year, every employee will receive one unit as well as an additional level of our latest model for themselves, as well as another unit, how they use it is up to their discretion (keep it or give it as a gift).

Communications

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One of the most effective ways to reach the wide range of target customers we plan on using is a print ad in all of the action sports magazines. We plan on having ads in all of the Transworld and Alliance related magazines, as well as posting posters and flyers in the cable parks and larger distributers. Also, specifically targeted ads online will play a big role in our success. We plan to partner with action sports specific web pages and have banner ads for our product on the page. In doing so, we will be reaching our exact target market in a very efficient way.

DistributionThe 3B Storage Unit will be distributed through local board shops, as well as larger action sports retailers throughout the country. Our product will also be offered through the 3B online store. We will distribute our product to collaborators as needed based on an automated order system. When their inventories reach a certain minimum quantity, we will automatically restock their inventory to the maximum quantity, which is set by the seller.

Implementation

InfrastructureSince we offer such a specialized piece of equipment, we plan on manufacturing all of the units in house. We have registered with the United States Government as a producer of commercial goods, and are in compliance will all of their rules and regulations. We chose to manufacture the units in house in order to guarantee the quality of the product we are delivering to the consumers. We plan on reducing the defective unit count by hand checking each and every unit that we produce. By 2014, we hope to have increased our manufacturing efficiency by up at ten percent. This will help prevent things such as hold ups in the manufacturing process, as well as increase our total number of units produced.

ProcessesThe manufacturing of each unit will follow a certain procedure as follows:

Customers will communicate their orders electronically depicting how many of each unit they need.

On site buyers will then purchase the materials necessary for the production of each order

Once the materials arrive on site, our hands on manufacturers will inspect each order to ensure that we have all of the materials necessary to produce the specified number of units

The units will be assembled in the order in which they are received Each unit will the thoroughly inspected one fully assembled to ensure the best

possible quality Orders will be shipped out to customers with their entire order in one shipment

Schedule

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Currently, we are only involved with the manufacture and distribution of our adjustable storage units, as well as the addition levels. In 2013 we plan on launching customizable units that customers can make through our website and make their own (third quarter). By the end of Q4 in 2013 we hope to have partnerships and deals with certain companies in the action sports industry so that we can produce our units containing their logos.

Control

Performance EvaluationAs a company that is concerned with efficiency of production, we are also very concerned with our financial efficiency. We plan on monitoring our finances very closely to make sure that we meet our goals each quarter, and if we don’t, what we can do to make us more successful. Other than just our finances, we plan to use the following ways to track our success:

Number of new customers Number of orders per month Number of distributers that carry our product Number of units sold per month

We will constantly be pitching our product with our highly trained sales force to new distributers and wholesalers in hopes to continue the growth of our clientele. Environmental AnalysisBeing in such a specialized market, we must be able to keep up with the trends of new sports and new styles of equipment. In doing so, we will make sure that our product fits the style and shape of the new products in the market. Also, this will help up stay on top of what is going on in the action sports world. We will monitor our competition, seeing if they have any big innovations in their units, and if they are protected or not. Also, we plan to do the following things to make sure that we are constantly up to date with consumer preferences in the action sports world:

Attend surf expo in Orlando, Florida on a yearly basis Have a booth at every major action sports competition Attend all action sport association conferences Determine customer preferences through research methods

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Works Cited

"Circulation | SURFING Magazine." SURFING Magazine RSS. Grind Media, 2012. Web. 19 Nov. 2012. <http://www.surfingmagazine.com/media-kit/circulation/>.

"Description of Patent Types." Description of Patent Types. United States Patent and Trademark Office, 1 June 2000. Web. 5 Oct. 2012. <http://www.uspto.gov/web/offices/ac/ido/oeip/taf/patdesc.htm>.

SimplyMap. N.p., N.d., Web. 9 Oct 2012. <http://www.simplymap.com.jproxy.lib.ecu.edu/>

"Sporting Goods Stores in the US." IBISWorld. N.p., July 2012. Web. 5 Oct. 2012. <http://clients1.ibisworld.com.jproxy.lib.ecu.edu/reports/us/industry/default.aspx?entid=1079>.

"United States - Sports Equipment." MarketLine Advantage. N.p., 31 Jan. 2012. Web. 5 Oct. 2012. <http://advantage.marketline.com.jproxy.lib.ecu.edu/Product?pid=MLIP0136-0014&view=d0e5>.

"Wakeboarding Mag 2010 Media Kit." Wakeboarding Mag. N.p., 2010. Web. 19 Nov. 2012. <http://www.surfingmagazine.com/media-kit/circulation/>.

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"WakeScout." Cable Parks in United States -. N.p., Aug. 2012. Web. 10 Oct. 2012. <http://www.wakescout.com/directory/category/cable-park/north-america/united-states>.

Exhibits

1. Water Sports Equipment ($000)

2. Winter Sports Equipment ($000)

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3. Water and Winter Sports Revenue

4. 3B Logo

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