the new oba strat plan 2
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Outward Bound Adventures,
dba OBA Inc.*Nature-Based Experiences and Self Mastery Skills for
Underserved Youth
By Wendell E. Hall
Natural Knowledge, LLC
January 2010
* OBA is a 501(c)(3) private non-profit charitable organization
The “New OBA” Strategic Plan
WHO?
“We” Are One…Just One
“Natural Knowledge” is my consulting company
I am a Marketing professional with over 28 years of marketing experience with major package goods companies such as ConAgra Foods, Quaker Oats and DowBrands
I recently crafted a marketing position for a new Non-profit in Dallas, Heart of a Warrior Foundation
I practice a brand of marketing called
“Mother Nature Marketing”
– Follow/Friend me at: http://twitter.com/MotherNaturMktg
http://www.linkedin.com/in/MotherNatureMarketing
http://www.facebook.com/MotherNatureMarketing
My Blog at Mather Nature Marketing http://wendellhall.wordpress.com
Professional Bio
CONAGRA FOODS 1995 to 2007 Senior Marketing Manager (Director Organizationally) -- Delivered top-line
growth for 10 of 12 years for ConAgra Foods $120M membership warehouse club channel.
THE QUAKER OATS COMPANY 1990 to 1995 Product Manager -- Leveraged Quaker brand equities to provide a family of
consumer-recognized wholesome snacks
DOWBRANDS INC., A DOW CHEMICAL CO. SBU 1980 to 1990 Brand Manager -- Was the key strategic leader for the Ziploc Storage Bag
brand. DowBrands Inc.’s flagship $80M brand
EDUCATION Continuing Education -- Executive Program in Brand Strategy,
Northwestern University, Kellogg Graduate School of Management
Bachelor of Science in Business (Marketing Concentration), Indiana University, Kelley School of Business
Community Service Bio
Board Member, Heart of a Warrior Charitable Foundation (2007 – Present)
Executive Director/CMO, Heart of a Warrior Foundation (2007 – 2009)
Safety Committee Member, Outward Bound (2006-2009)
Course Leader, Outward Bound Adventures (1997-Present)
Board of Directors, Outward Bound Adventures (1997-2008)
Instructor and Mgmt. Committee Member, Sierra Club-Angeles Chapter Wilderness Training Course (1999-2006)
CPR/First Aid Certification Coordinator, Sierra Club-Angeles Chapter (2001-2005)
Volunteer Leader and Indy Board “Committee” Member, Young Life Inc., (Cumulative 18 years of service in 4 Cities) - Indianapolis, IN / Dallas, TX / Chicago, IL / Pasadena, CA
For More Info See www.WendellHall.vpweb.com
Also Check Out My Blog at http://wendellhall.wordpress.com/
OBA Situation Assessment OBA is virtually a 50 year old local LA
institution providing outdoor education and experiences to local underserved youth
In 2006 OBA agreed to merged with OB
As part of the merger agreement an “unwind” provision was created in the event that the 2 cultures were not compatible
In November 2009 OB exercised the unwind provision
As of December 31, 2009 we are on our own
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” -- Winston Churchill
The OB Unwind = Opportunity
Our separation from OB creates uncertainty and stress, but opportunity to:
– Strengthen the OBA brand– Correct frustrations from the past– Incorporate best practices from OB– Serve our audience our way, unencumbered– Emerge better and stronger than ever
Time Critical Needs
Relaunch the OBA BrandDefine the OBA position
Refine the brand message
Begin the Marketing CampaignNEED TO DO ASAP!!!
Secure Operational Funding
Notify Grant Givers
Revise Contracts with Clients
Appeal for Donations
In Process
Replace Operational Tools
Phone Systems
Website
Already Done
A History of Successful Re-branding
Rebuilding the Brand is Job #1 Kentucky Fried Chicken KFC
Pittsburg Plate Glass PPG
Southwestern Bell SBC
Gatorade - currently in “transform” process G
Who Should We Become…
Outward Bound Adventures (dba,OBA)
Becomes……
Simply branded as…
OBA “Now New and Improved”
Rationale For RebrandingNegatives of “OBA” Brand
Some in LA/Pas. remember what OBA stands for
“Outward Bound” has high name awareness and broad recognition
Positives of “OBA” Brand OBA already has local and
outdoor brand awareness
New audience, no ties to the original name
Eliminates confusion between us and OB
Reduces the need to explain the separation from OB
“dba, OBA” is cumbersome
OBA is crisp and memorable
Clear, single communication message
Simplifies branding efforts
How to Answer OBA Questions…
Q- What does “OBA” stand for?
A- We were founded as Outward Bound Adventures 50 years ago
Q- Are you a part of Outward Bound?
A- NO
Q- Were you formerly part of Outward Bound?
A- Yes, but not currently
Q- Does “OBA” stand for anything now?
A- Yes, we are still “Outward Bound Adventures”
Immediate Rebranding Communication Steps
(First 60 Days)
Personal/Phone Contact
•All current clients
•Major Supporters
•Hot prospects
•Former staff and board members
Mailing Campaigns
•News E-Blast
•Electronic Newsletter
•Mail Special Edition Newsletter
Update All Normal Branding Vehicles
•Signage
•Letterhead
•Update Phone system Message
•800 number System
•New Website!!!
Update All Written Communications
•Donor Letters/Cards
•Add N&I Tagline in your Email Signature
•Revise and Update the Logo
Example of Effective E-Blast Strategy
Example of a Good Website
Example of Contemporized Logos
?
Strategic Messaging
For the
“New OBA”
“New OBA” Vision
Vision:OBA will be known for service to diverse
underserved youth and their development into responsible, participative and productive leaders and citizens of the world.
OBA will teach youth to care for natural environments and social communities in-need around the world, because we are all part of humankind in an interrelated, bio-diverse global community.
Old OBA Mission
Purpose -- dedicated to providing challenging outdoor environmental experiences to urban youth.
Community – provide multi-ethnic, low-income students in Los Angeles area inner cities with year-round programs of challenging outdoor environmental learning activities.
Education -- using mountain, dessert, coastal tide pools and other locals as tools to educate youth about the natural environment and outdoor careers
Self-esteem -- challenge youth to learn more about themselves through adventure experiences.
Not to be read now.
For reference only.
“New OBA” Mission
Mission:OBA is the community service organization that serves
underserved urban youth in Southern California and other select cities, and their families, by promoting self empowerment, dignity, accountability, community commitment and environmental stewardship.
By seeking to establish deep relationships with participants, OBA strives to advance cultural, class and ethnic diversity and ensure equal access and opportunity for all to enjoy wilderness environments.
Furthermore , OBA will upgrade student academic, social and self mastery skills that are applicable in all aspects of life, including: school, professional, outdoors, as well as in their home communities.
“New OBA” Purpose
Purpose:To serve underserved urban youth and their
families, to promote self empowerment, to inspire personal accountability, to teach a greater appreciation of the wilderness, self, family and community through meaningful contact with and exposure to nature.
“New OBA” Positioning
Brand Statement: For underserved urban youth OBA is the fun,
adventurous way to develop into productive peer community leaders and responsible citizens of the world.
Brand Promise:Through use of outdoor environments, OBA will
create experiences and build relationships that will positively impact participant’s lives.
OBA’s Old 5 Areas of Focus Eco-literacy/Environmental education
Teambuilding skills
Outdoor careers and practical experience
Challenging hikes/activities
“Leave-no-Trace” wilderness principles
Promotes group involvement, personal challenge and inspires youth to find positive, peaceful solutions to problems.
Teach basic resource management, conservation and ecological concepts.
Promote teambuilding and leadership skills. To help youth discover themselves and understand their role
as responsible members of their community.
Old Objectives
Not to be read now.
For reference only.
OBA’s “New” Five Programmatic Keystones
Created By OBA Staff
Eco-Literacy
Social Action– Public Speaking– Community Organizing– Collaborative Decision
Making– Community Service: Urban
and Wilderness
Self Mastery– Goal Setting– Values Clarification– Prejudice Reduction– ICTSOLO– Meditation– Physical Challenge
Community/Family– Family Communication Skills– Group Functioning– Family Goal Setting– Family Bonding– Cultural Celebrations
Employment and Life Skills– Job Readiness Preparation– College Prep– Outdoor Career Exposure– Fund Raising– Add: Volunteerism
Differences – Old vs. New Drops any reference to “Low Income”, which is a
negative
Expands geographic focus from LA to SoCal and other select cities
Stated inclusion of “families”
Broadens “education” to mean total academic proficiency, not just eco-literacy
Specifically spells out an old tenet of OBA that was mere implied before – to “build deep relationships”
Greater emphasis on bringing learned skills back to their home community
OBA S.W.O.T. Analysis
OPPORTUNITES Social and Science based programs Community, Local Govt.
relationships already in place Plan to Relaunch OBA Plan for New Revenue Streams
THREATS OB Expected to Enter So Cal Crowded Social Service field vying
for reduced dollars No ED succession plan in
place
STRENGTHS 50 Years of Success/History Charismatic Leader Strong Community, Local Govt.
relationships and So Cal Outdoor Connections
Eco-Scientist Leadership Large Alumni Following Strong, Proven Programming Proven Fee-for-Service Model Proven Staff
WEAKNESSES Weak Financial Footing / Cash Weak Economy for Development No Board Members with Direct
Company Financial and/or Media Resources
ED wears too many hats and spread too thin
We Are Clearly a Contract Driven Org.
1%
91%
8%
OBA Average Revenue Sources 2009
Board Give & Get Contribu-tions
Contracts
Fundraised
Mitigation of Weakness/Threat
As noted in the SWOT we depend on the ED for most of the elements
ED is spread too thinly
A Two Part Solution….
Business Unit Director (BUD)
Part 1: To free the ED to maximize program funding and development, I recommend a “Bus. Unit Director” (BUD) CMO - Brand Building for the “New OBA” Oversee Day-to-Day Ops
Build New Bus. and Fee-for-Service Revenue Streams
(This is NOT philanthropy development)
Face to the Client Manage all Financials Special Reports per Board Requests
30%
15% 30%
10% 10% 5%
Development Manager (Part-time)
Part 2: To free up the ED to maximize his efforts, I recommend we replace the “Development Mgr.” position
Corporate & Major Donor Philanthropy
Donation Campaigns
Grant Writing
Annual Fund Raising Events
Proposed OBA Org. Flow
Board
BUD/
OPS
Financial/Bus. Management
Program Management
ED
Development/
Funding
Development
of
Programs
?TB
Discussed Later
Revenue Sources Corporate & Major Donor Philanthropy
– Disadvantage – Extremely weak economy
Fee-for-Services (Client Agencies)– Effective source of revenue but diminishing returns
Donation Campaigns– OBA friends are loyal but not significant givers
Grant Writing– Major grant giver portfolios are extremely depressed
Annual Fund Raising Events– Unproven and risky
Plus -- A New Revenue Stream
A New Financial Paradigm
“Those who do not remember the past are doomed to repeat it.”
George Santayana
A New Revenue Stream Sister Company – “NewCo” Enterprises
Summary The Unwind created new opportunities Relaunching the OBA brand is key to success A simple, clear brand will minimize confusion Need to immediately communicate the “New & Improved” OBA
brand message to our stakeholders Synergy across all communication vehicles is a must to
maximize the brand impact ED needs to be able to “focus” on key relationships for
development and financial sustainability A BUD is a solution for making the ED more effective A New revenue stream outside of traditional philanthropy and
grants is needed Other 501(c)(3)s have successfully employed a sister company
who’s purpose is generating income for the service agency
Recommendations
Immediately close gaps left by the unwind Board development that adds members that
can activate financial resources
Activate the BUD Strategy to oversee critical operating and marketing needs
Employ a part-time development mgr.
Activate the “Sister Co.” concept ASAP
QUESTIONS?
DISCUSSION?
Take 10:
Intermission
A NEW PRESENTATION
Clear your mind of the prior presentation. Think “NEW”.
WELCOME BACK TO…
OBA Gets a “Buddy”… Now it Needs a “Sibling”
Introducing…
The “NewCo” Concept
THE BUSINESS CASE
The “NewCo” Concept “NewCo” is merely a placeholder for the company name
that will be chosen
One of NewCo’s main purposes is to generate revenue that will help to financially support OBA
The purpose/mission will be clearly stated in all marketing communications for transparency and altruistic appeal
NewCo may be a for-profit or a non-profit company, depending on the analysis of tax favorability vs. profit upside
NewCo board will be the Newco CEO, the OBA ED and an OBA interlocking directorate (a small subset of OBA directors, probably 3 to 5)
The “NewCo” Concept Continued
NewCo will target adults, age 18 to 60, that have a love for active outdoor experiences, with financial means
NewCo will offer vacation Excursions
Excursions will be multi-day trips to compelling outdoor locations
Locales will be in attractive eco-vacation destinations or challenging outdoor experiences
Excursions will be non-technical
Excursion will rely on a supply chain of professional outfitters or guides as contractors
Types of Excursions
Excursions Can Be:
Thru-hiking on the PCT
(The Main Attraction; See Appendix)
Hut-to-hut hiking Backpacking in National Parks Mule packs Paddling trips International trekking Rain Forest Eco-tours Photo Safaris Sailing cruises WFA/WAFA training courses
Excursions Will Not
Not be technical Not include extreme conditions Not have >3rd class exposure
Example #1 - BCM & SFS
Example #2 - BAWT & CFC
STRATEGIC MESSAGING
The “NewCo” Vision
NewCo will be widely known as the outdoor excursion and eco-tourism outings provider that offers a variety of the most fulfilling outdoor experiences that delight adult vacationers.
The “NewCo” Purpose & Mission
Mission: NewCo will provide unique outdoor vacation
experiences for its clients while generating revenue that supports OBA’s “unrestricted” financial needs for operations, overhead and programming.
Purpose: 1. If For-profit: To provide a reasonable return to
investors/owners2. To provide incremental funding to support OBA
operations in serving underserved youth and their families.
The “NewCo” Brand Position
Brand Statement: For adventure vacationers NewCo will add
unparalleled comfort and convenience to the outdoor experience without robbing them of their outdoor adventure.
Brand Promise: We will be the outdoor concierge for adventure
vacationers.
THE EXECUTIONAL PLAN
•Start-up Process•Tactics
•Financials
The 4Ps of Marketing
Packaging
Our packaging will be the “hands-on value added attention” given to each client, for each excursion
We will be the Outdoor Concierge
Promotions We will offer loyalty discounts or
promotional offers on multiple excursion bookings
Product Unique Types of Excursions: Thru-
hiking, Trekking, Mule packs, Sailing, Paddling, Training trips, Eco-vacations, etc.
Price We will price excursions on a cost-
plus markup basis
Prices will be within 15% of market pricing for similar programs
Value proposition will include the “altruistic” benefit of helping kids
Possible NewCo Names• Adventure Excursions, Because Kids Matter
• Trekking Toward New Horizons
• Walkabout for Kids
• Bright Sunrises Excursions
Option: We could operate under the Natural Knowledge, LLC banner initially
New ideas for names WELCOMED!
Business Startup Processes1) Select Name
2) Incorporate
3) Logo Design
4) Phone System
5) Website/Email/Domain
6) Printing (business cards, letterhead/envelopes, signage, etc.)
7) Bank Account(s)
8) Board Development (Interlocking)
9) Secure Startup Financing
10) Augment Business Plan
11) Finalize Marketing/Media Plan
12) Develop a rolling 2 year Excursion Program schedule
13) Vet the supply chain and test programs
14) Contract Supplier services and deliverables
15) Execute Media Strategy
16) D&O and Liability Insurance
Program Goals Conduct 12 Excursions in the first 12 months working up to
18 per year by year 2 …or 36 by year 5
Define and vet the supply chain to support each type of excursion in year 1
Have 2 suppliers for each excursion type by year 3
Generate $33k for OBA in year 1… growing to $135k by year 3… $200k per year by year 5
Establish at least 3 promotion partners that supplies appealing products and/or services by year 1
Establish a relationship with at least 1 “trusted” travel agency partner to recommend to our clients for their travel plans before operations begin
Year 1 P&L - Lo/Med/Hi12 Mo. Forecast
Lo (2 per 4 Mo.)
Realistic(3 per Qtr.)
Hi(3 per 2 Mos.)
Gross $ 195,000 390,000 585,000
Discounts 0 0 0
Net $ 195,000 390,000 585,000
COGS 140,400 234,000 280,800
Gear Promo. 19,500 39,000 58,500
A&P 25,200 25,200 25,200
Profit Cont. 9,900 91,800 220,500
Overhead. 27,000 27,000 27,000
Salary(20% of PC)
- 18,360 44,100
PBT (17,100) 46,440 149,400
Inc. Tax .28% - 13,003 41,832
To OBA 0 33,437 107,568
Based on trips at avg. $2,500 per
Est. no “Multiple Trip Discounts” yr. 1
Based on trips at $1,000 GP Margin
Based on avg. $1500 Cost
$500 retail value, at 50% wholesale cost
Seed money needed for CPC advertising
Based on trips at $1,000 GP Margin.
Add’l. investment (See Budget Details in the Appendix)
Target 20% of PC for Salaries.
.
Estimate of 28% Tax rate after deductions .
100% of PBT to OBA up to $200,000, then a percentage over the target.
Year 3 and 5 P&L Forecast Year 3 Goal
(4 per 2 Mo.)Year 5 Goal
(4 per 1.3 Mo.)
Gross $ 780,000 1,170,000
Discounts 31,200 77,922
Net $ 748,800 1,092,078
COGS 374,400 561,600
Gear Promo. 78,000 117,000
A&P 25,200 25,200
Profit Cont. 271,200 388,278
Overhead 28,350 29,700
Salary(20% of PC)
54,240 77,656
PBT 188,610 280,922
Inc. Tax .28% 52,811 78,658
To OBA 135,799 202,264
.
Assumes 20% disc. on 1/5 & 1/3 of the yr 3 & 5 revenue, respectively
Based on cost reduction from yr 1 to $1200 per person
Minimum seed money needed (CPC)
Increased GP Margin to $1,300 per trip
See Budget Details in the Appendix.
Target 20% of PC for Salaries.
.
Funds that could go to OBA if Non-Profit
100% of PBT to OBA up to $200,000, then a percentage over the target.
Next Steps
OBA Board to approve the 2010 budget including the BUD & Devel. Mgr. positions
OBA Board to approve an official affiliation with NewCo using OBA’s mission as a driving purpose of NewCo
Agree on tax status
OBA ED to determine financial investment into NewCo and gain Board approval.
Final Thought
"The point of…being an optimist, is to be foolish enough to believe the best is yet to come."
-- Peter Ustinov
APPENDIX
.
Year 1 BudgetBUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
Mo 1 Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Mo 7 Mo 8 Mo 9 Mo 10 Mo 11 Mo 12 Total. Yr. 1 Comments
Revenue
Through-Hiking 97,500 97,500 97,500 97,500 390,000 3 groups of 13 per group in 4 Cells
Costs
Audit 1,500 1,500 Audit of books for Donor request purposes
Bookkeeping/Accounting/Tax Prep. 150 150 150 650 150 150 150 150 150 150 150 150 2,300 Monthly Bookeeper and Ann. Tax prep.Insurance 2,200 2,200 D&O and $1M Liab. Insurance
Bank Fees and Credit Card Processing 325 25 25 325 25 25 325 25 25 325 25 25 1,500 Credit card Fees activated by processing for trips
Debt. Service - Administrative - Misc 50 50 50 50 50 50 50 50 50 50 50 50 600 Petty Cash
postage-administration 20 20 20 20 20 20 20 20 20 20 20 20 240 Includes $15 per month for misc. Fed-x Salaries-Administrative (SG&A) 4,590 0 0 4,590 0 0 4,590 0 0 4,590 0 0 18,360 Salary is estimated at 20% of Net Sales
Other Compensation - Office Supplies 25 25 25 25 25 25 25 25 25 25 25 25 300 Misc.
Misc. Taxes - Unemployment Tax - Office phone & DSL 125 125 125 125 125 125 125 125 125 125 125 125 1,500 Cell Phone Monthly Svs. 120 120 120 120 120 120 120 120 120 120 120 120 1,440 Travel/Subsistence/Ent. 2,500 2,500 2,500 2,500 10,000 Travel to kickoff and greet returning Excursion
Staff Development / Training 300 300 Board Meeting Expense 30 30 30 30 120 Printing and snacks for Quarterly meetings
Board Development - Computer Network 70 70 70 70 70 70 70 70 70 70 70 70 840 Verizon Broadband monthly fee
Equipment/Software 100 100 100 100 400 Scanner, Camara, Router, Software, etc
Equipment - Maintenance 50 50 50 50 200 Occasional Geek Squad Expense
Unemployment Tax - Office Rent 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Photography 50 50 50 50 200 Excursion Photo processing/Printing
Web Hosting 30 30 30 30 30 30 30 30 30 30 30 30 360 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total Cost of Overhead (SG&A) 8,405 3,415 895 8,905 915 895 8,405 915 895 8,405 915 2,395 45,360 Overhead Less Salary 3,815 3,415 895 4,315 915 895 3,815 915 895 3,815 915 2,395 27,000
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Gear Promotion Expense 9,750 9,750 9,750 9,750 39,000 Offer $500 retail value purchased at 50% Wholesale cost per customerDiscounts 0 0 0 0 0 0 0 0 0 0 0 0 - None predicted in year 1Marketing 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Advertising 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total Cost of Adv. & Promo. 11,850 2,100 2,100 11,850 2,100 2,100 11,850 2,100 2,100 11,850 2,100 2,100 64,200
Supplier Contracts 58,500 58,500 58,500 58,500 234,000 Income Taxes 13,003 13,003 No Income in Year 1 to pay tax on
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total Cost of Services 58,500 - - 58,500 - - 58,500 - - 58,500 - 13,003 247,003
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Profit / (Shortfall) 18,745 (5,515) (2,995) 18,245 (3,015) (2,995) 18,745 (3,015) (2,995) 18,745 (3,015) (17,498) 33,437
PCT Thru-Hiker Facts The Pacific Crest Trail (PCT) goes from Mexico to Canada through
California, Oregon and Washington As the crow flies the distance between Mexico and Canada is over
2,500 miles The PCT crosses the world-famous San Andreas Fault three times. It pass through six out of seven of North America's eco-zones including
high and low desert, old-growth forests, rain forests and arctic-alpine The PCT passes the three deepest lakes in the nation; Lake Tahoe
(1,645 feet), Crater Lake (1,932 feet) and Lake Chelan (1,149 feet) within driving distance of San Diego, Los Angeles, San Francisco,
Sacramento, Portland, and Seattle, Offers the best of the West:
The Mojave Desert the Sierra Nevada and Mt. Whitney Yosemite National Park Marble Mountain and the Russian Wilderness in Northern California, The volcanoes of the Cascades including Mt. Shasta and Mt. Hood, Crater Lake,
Columbia River Gorge, Mt. Rainier, and the remote Northern Cascades.