Professional Documents
Culture Documents
TRACKSTRONG
Introduction
Innovations and inventions happen every day. It is time to introduce
something that will not only change the way you ski or snowboard,
something that will not only protect you, but will not hinder your mobility. We
introduce you to TrackStrong. While poring over research article after article
to design and then improve our product, our team at TrackStrong could not
help but become more and more engaged, enthusiastic, and eager about the
TrackStrong product. The TrackStrong helmet aims to change up the helmet
market through the use of a global positioning system (GPS), gravitational
force sensor, and Bluetooth enabled technology. TrackStongs upcoming
introduction to the Colorado winter sports market has been carefully
calculated, as seen in the following marketing plan. Product, pricing, and
positioning strategy will be also be presented.
Wearing a helmet is a must to help reduce the risk of a serious brain
injury or skull fracture. However, helmets are not designed to prevent
concussions. (See Figure G.) There is no "concussion-proof helmet (Center
for Disease Control, USA). This quote, taken off of the CDC website, is, of
course very true. There is not a concussion proof helmet nor is there one
seriously in the works anywhere in the world. However, with new,
inexpensive, small and adaptable technology, the TrackStrong helmet is able
to detect the gravitational force impact of concussions, thus preventing
many of the dangers associated with impacts immediately following
undiagnosed concussions (See Figure G.). Immediate detection also protects
TRACKSTRONG
TRACKSTRONG
1) winter activities needed this helmet due to the unique challenges amid
terrain some families might face 2) consumers want to have fun and should
never be limited due to a less advanced helmet. So after investigation, the
final two main features were added GPS technology, and Bluetooth
capabilities.
Three main problems that can affect skiers and snowboarders would be
1) getting lost in an unfamiliar area 2) being trapped in a White-Out condition
where visibility can become extremely compromised 3) receiving an injury
and not having the ability to call for help.
Beginners and advanced winter athletes alike are known to run into
complications due to the unpredictability of winter weather as well as the
dangerous snow conditions/ surroundings skiers and snowboarders run into,
such as heavy snow fall in heavily wooded areas. With TrackStrong as their
helmet and the applications that are provided, many of the skiers and
snowboarders can find the joy of fun in the sport without the worry of what if
situations. Later in this marketing plan our team will explain how the exact
target market was chosen and why, but as of right now the target market
location will undoubtedly be limited to Colorado, home to more than 25 ski
resorts (Colorado.com).
Digging into analyses, it is clear to see that TrackStrong is on the right
path due to the answers given by snowboarders and skiers. The question
asked was simple what was the most important factor in deciding which
equipment to buy and why? 76% said I wanted new equipment with
TRACKSTRONG
better technology28% said they found a great deal on the Internet that
motivated them to buy. Skiers said the same as snowboarders, 75%
stated I wanted new equipment with better technology, but didnt limit
mobility (NSAA).
Throughout this marketing plan, specifics and logistics will unfold, such
as a target market that has a whopping $200 Billion in annual spending
power (Kelton Research) and makes up more than 40% of all snow sports
participants(Kelton Research) , and an advertising campaign that leads with
adrenaline and ends with over delivering on promises. TrackStrong helmets
are changing the game and are here to stay.
Situational Analysis
Industry Trends.
Snow sports are a $2 billion per year industry. Sales for 2014 season
were $2.8 billion. This is up 2% from last season, according to Snow Sports
Industries of America (also known as SIA). The sales data above were taken
from sales that occurred from August to December 2014. Out of the $2.8
billion, majority was outerwear sales, which was $1.1 billion, up 4% from last
season. Equipment and equipment accessories were down 2% to $892
million (-according to SIA) the reason for equipment sales being down in
2014 were because of an inventory problem with online channels. Due to
2014s lower equipment sales it brings concern regarding TrackStrongs
strategy because helmets fall under the equipment category, however,
TRACKSTRONG
unlike some other sports, (ex. surfing, skateboarding), snow activities such
as snowboarding, snowmobiling, and various types of skiing practically
require a helmet to gain access to slopes for safety reasons.
Out of $2.8 billion sales in 2014, most of it came from retail. $2.1
billion were sold in retail, and online sales were down 6%, selling $636
million. Equipment sales were much lower through online channels for lack of
inventory early in the season. Equipment sales were down 20% in 2014
December compared to the previous December. Equipment sales were down
in specialty shops too, they were down 2% to $380 million, but rental
revenue went up 15% to $90 million. Snowboard equipment sales were up in
chain stores 14% to $21 million. Snowboard equipment sales went up 10% to
$18 million in the Midwest region because of cold temperatures, frequent
snowfalls and low gas prices, encouraging tourism (SIA).
For TrackStrong, any and all snow sport industry trends are important,
as it is the industry TrackStrong products will fall under. According to NSAA
(National Ski Areas Association), overall, 73% of all skiers and snowboarders
wore helmets during the 2013 and 2014 season, which was a record at that
time. So as the snow sporting industry is growing, it is good news for
TrackStrong. As of 2014, a projected growth in the industry means there are
more people trying out skiing and snowboarding for the first time. Which
means revenue will increase, as beginners need new helmets for their
newfound sport. There are also chances that old customers of other brands
will switch over to TrackStrong, because it is a new product in the current
TRACKSTRONG
TRACKSTRONG
Customer Analysis.
Helmet usage in snow sports has tripled since 2003, 70% of snow boarders
and skiers use helmets. Snow sports customers are really active, outgoing,
and environmentally friendly people. They are usually middle, or upper
middle class people. According to SIA more women are getting into snows
sports. In 2013-2014 season sales of women specific cross country
equipment increased 28% to over $6 million. In that season more girls
bought snowboarding equipment. Junior girl snowboarding equipment sales
were up 36% sold that year. Women are usually more careful and
environmentally friendly than men are, so it is an opportunity for Track
Strong to sell to the environmentally friendly recycled helmet, which has
sensors to measure how hard someone might get hit so they will know
immediately if they have a concussion or not.
SWOT Analysis.
Strengths
-
product cycle.
-
Safety is also another strength, As other helmet does a good job only
protecting the skull and does a bad job with concussions, we protect the skull
and also have sensors that can be used to tell if someone had a concussion
or not.
-
TRACKSTRONG
recycled materials to make our helmets, which also helps us to make our
product cost efficient, which is our strength.
Weaknesses
-
Our biggest weakness is that we are a new brand, and it will be hard
sporting good Industry is growing. Even though equipment sales were down,
this is an opportunity for us, because we are a new product in a current
market. Most consumers are technologically advanced. They like new
technology, they instantly know about new high tech products.
-
friendly.
-
because they usually tend to be more cautious about safety and the
environment.
-
news that snow sporting helmets are not good for concussion, like the New
York Times reporting about Michael Schumachers head injury while skiing,
so more people knows that these helmets are not good for concussions, and
when they know that Track Strong is helmet that has sensors to detect if
someone had a concussion or not, they will want the helmet. So it is also a
big opportunities is that it is a new product in the current market.
TRACKSTRONG
Our biggest threat is that the sensor technology was already used in
the NFL, and they got rid of it because some professional physicians thought
that it is not reliable enough.
-
Another threat is that there are other helmet companies that have
goggles, which has GPS. That is one of the threats because we also have the
GPS in our product.
-
TRACKSTRONG
10
They learn about innovative products very fast.So these people might like
our product for our concussion detection technology. They use social media
to criticize or praise the product they are using. Reading their feedbacks on
sites like twitter and Facebook, other consumers outside of Colorado who are
not that into snow sports make their decision on what to buy. For social
media brands have less control over consumers (SIA). There are lot of
tourists who come from all over the U.S. to enjoy snow sports in colorado.
They mostly come from California and stay in Aspen. They are also mostly
upper middle class. A lot of them are beginners, so safety is a big concern for
them. So we have a good chance that they will buy our product.
TRACKSTRONG
11
targeting, and positioning in very calculated order for our brand to achieve
success. The following are attributes we see in our prime segments that we
want to pursue.
Geographic
Colorado
Metropolitan, Urban
Demographic
Age appropriate to ski and snowboard
Interested in and have future years ahead of them in these sports
White (See Figure A.)
Upper class, wealthy
Men and women
Psychographic
Extroverted, ambitious, confident, active, positive
Health conscious
Value innovation and technology (See Figure B.)
Behavioral
Influencers / Experiencers
Frequent users
Want better tech
Internet users, aware of competitors, options
Targeting.
Heavy users in any industry are the most valuable. This is why we have
decided to go after our heavy users and die hard sporting enthusiasts. The
following profile is our target market. (See Figure E.)
experienced winter athletes. Experienced winter athletes do not
know what insecure feels like on the snow. They are young, Colorado natives,
who are just as comfortable slipping on a pair of skis as they are putting on
their shoes in the morning. These athletes are part of Generation Y (or
TRACKSTRONG
12
Millennials) and range from 18-34 years old. They display heavy usage of
winter apparel and equipment and are hard to please, but deadly loyal to the
brands they love and trust. They say they value new technology in their
equipment as well as Earth-friendly packaging and materials (Davis, K.).
To target this market will be difficult, but worthwhile. Once we obtain
their loyalty and dollar, they will advertise for us just by being themselvesskilled, young, attractive, and active. Their visibility on the slopes daily,
performing stunts, and practicing on advanced slopes, all while wearing a
TrackStrong helmet, will do wonders for our brand. Ultimately, this is where
our brand wants to be (Davis, K.). (See Figure F.)
This target market wants what we have to offer - new age, lightweight,
state of the art design. They want to be cool and on the cutting edge. This
group reacts strongly to viral marketing and interactive physical promotions.
Below we will go into detail about our advertising strategy, but the basis for
gaining these Millennial's money will be to stress our product differentiation.
Giving stylish gear increased safety performance offers customers the
best of both worlds. Ensuring their future health and allowing them to be cool
on the slopes will hopefully propel our product into the lives of our customers
and helping them to achieve new heights with flair and security.
Positioning.
Positioning is the narrowest choice of the three analyses. Now that we
know that we plan to target the market of Colorado 18-35 year old serious
winter athletes, we have to ask the question - what do we want them to think
TRACKSTRONG
13
of us?
Well, we want them to see three things when they look at a
TrackStrong helmet- strength, durability, and technology. We want them not
to see our safety features as cushions for the breakable, inexperienced skier
or snowboarder. Instead, we want them to see strength in us - quality
material and lightweight, hard plastic exterior.
Targeting Generation Y will also enable us to invariably capture a larger
market. As the product reaches economies of scale, we will be able to better
produce quality low cost offerings that will allow us to reach further into the
marketplace and potentially enable us to spin off into other sports. This is
crucial for future growth and development.
Pricing Strategy
When introducing a similar product out to the market world we have to
take into consideration the distinctive features our product carries up against
our opponents. This allows us to determine the pricing for our product will be
lower than our competitors. The other helmet companies have an inefficient
production systems which leads their product to higher prices. They are at a
good standpoint to generate profit but once TrackStrong hits the market they
will be reevaluating their pricing considerations. Having three major
competitors in the market which are Giro Seam Rival Pro and Smith, they
offer helmets with some features like audio, sensory, and GPS but they dont
offer these features combine in one Helmet. This allows us to have a
TRACKSTRONG
14
competitive advantage.
As a result of having 100% recycled material, we are able to make our
price attainable. Due to the value of our product and unique features,
TrackStrong will have more to offer to our consumers with an affordable
price. Estimating our fixed cost containing rent $388,000, utilities $142,000,
and salaries $500,000 equal at a total of 1,030,000. Our variable cost consist
of direct material $450,000, production supplies $290,000, freight out
$10,000 and advertising expense $20,000 brings us to a total of 770,00 for
variable cost. Bringing us to an estimated cost per unit at $90.00.
TrackStrongs profit goal is to sell 20,000 unit bringing us to a total of
442,000 and a $1,800,000 revenue. Calculating fixed cost by dividing our
selling price minus variable cost gives us a breakeven of 11,417 units. Once
hitting our break-even point, this will be our mark where we dont gain or
lose any revenue or total costs. At this point considerations on price cuts will
be formed, making our product once again profitable.
Our competitor Giro seam sells their product for $120, Rival Pro
$103.96 and Smith $95.93. TrackStrong brings a competitive price of
$90.00 by displaying efficiency in GPS, Impact sensors and Bluetooth
captivity, unmatched by current competitors. The current competitors fall
short in providing these exclusive technology components in their helmets.
TrackStrong is able to provide this pricing by the materials consisting of
recycled components. Bringing environmental factors, quality and efficiency,
our product acknowledges the meaning of importance these three aspects
TRACKSTRONG
15
have within consumers. The demand for this product is in the market, our
product will be providing much more to those consumers by meeting their
needs. Pricing constants not effecting us, we will be able to successfully offer
our product at the price we set. We strongly believe we have an advantage
by providing our product at a lower price than those out there.
Throughout our product life cycle we will be continually reviewing our
pricing, keeping up with the market, new competitors and trends. Starting off
with skimming pricing we would have to consider when to bring our product
price down by regulating our product success, we wouldnt want to
underprice. Special adjustments will made and at this point quantity sold will
be considered.
TrackStrong will be granting allowances and discounts. Our product
discounts will be promotional, during off seasons we will offer an exclusive
offer of two helmets for a set price depending on the time of season chosen.
These discount will help out as a product promotion, attracting new potential
consumers.
Having a strong advantage within the market TrackStrongs main
objective is to get our product out to the market at an affordable and
reasonable price. With skim pricing obtaining our goal will maximize our
potential profit totals. TrackStrongs survival rate wont be a problem with
the correct pricing and successful advertising of what we have to offer. Our
product is untouchable by our competitors and will be dominating the
market.
TRACKSTRONG
16
Product Strategy
In the marketing world, all products go through the distinct life cycle
stages of introduction, growth, maturity and decline. A product life cycle may
last for a couple of days, months or it may continue for years. This all varies
on how well the product or service is positioned in the customers mind. It is
essential to determine the life cycle stage of our product to set performance
goals, such as sales and profit growth targets.
Our product, the TrackStrong Helmet, will be staged throughout the
four stages eventually. Since TrackStrong will be new to the market we will
focus on the introduction stage. In the introduction stage we want to be able
to invest in marketing campaigns to build awareness and most prominently
distribution channels to get our TrackStrong Helmet into stores. There is no
more fundamental way to increase the awareness of a brand than to place it
in potential customers' line of sight. Advertising TrackStrong at locations
where people congregate, such as sport-snowboarding events or
tournaments. The longer customers sees our product, the more likely it will
be remembered. Noting some of TrackStrongs product's notable qualities
on the product packaging in a bold and attractive design, so that it draws the
attention of even those who aren't planning to buy it.
TrackStrong does not simply want to over promote. We want to over
deliver. After the initial awareness and beginning stages of TrackStrongs
introduction, we plan to far exceed buyer expectations! Without the
TRACKSTRONG
17
introductory stage, our product will not be able to infiltrate the market. Our
growth will gradually rely on our product quality (discussed below) and
targeted marketing.
Analyzing sales and profit trends closely during TrackStrongs
emergence, we should see our sales line always traveling upwards. In a case
where our product were to fail, it would land in the decline stage forcing us to
exit the market. Competition is always high. Other helmets may increase
their quality and due to this, we may face a shift in the sales and profits
level. Lowering prices and increasing advertisements may help, but it could
also lead to lower profit margins if sales volumes do not grow. A way to keep
from losing profit would be by adjusting our product based on consumer
feedback.
The key Marketing Mix points we will consider are the product, pricing,
position, and promotion. Our product, the TrackStrong Helmet, will offer
GPS and impact sensing technology, a Bluetooth enabled application that
gathers data from helmet when within vicinity, and emergency pinging if a
button is pressed on the helmet. Even with all features and benefits,
TrackStrong will be lightweight and versatile.
We want to be able to choose the right price that will maximize profits
and also allow us to build strong, loyal relationships with our market. Due to
the competitive market, we want to offer a quality product that not only
satisfies customer wants and needs, but includes multiple features and
combines everything into one competitive price. We will consider using the
TRACKSTRONG
18
TRACKSTRONG
19
predict. Some companies have the ability to control the length. With
TrackStrongs new technological features, we are confident that our
products life will be protracted.
TrackStrongs four main features (GPS and impact sensing
technology, Bluetooth enabled chip, emergency button that pinpoints
location from helmet when pressed), enables its consumers to experience
four growing trends all in one product. No more need to carry four different
devices while snowboarding. Hence, the length of our product will depend on
the technology innovation we imply on the product alone. Continuing
innovation and adjusting or adding features will keep TrackStrong from
falling in to the dog PLC stage.
TrackStrong is a low-learning product, meaning that consumers will
be able to pick it up and use it with little to no new learning involved.
TrackStrong requires minimal consumer education, which results in a short
introductory stage.
Product quality relates directly to how well a product does and what it
is intended to do. TrackStrong will be made in a modern design, high
quality material, and layout and fitting that draws our segmented markets
needs. We want to be able to provide a smart, modern, working environment
that builds an image that reflects the status of the client. Consumers will
always focus on product features and quality to define how well the product
compares to competing brands in the marketplace. TrackStrong will also be
an injection-molded helmets allowing TrackStrong to have a strong
TRACKSTRONG
20
durability against everyday falls and knocks and providing impact protection.
A standard, three-quarter shell will be used to protect the top, sides and back
of the head giving a full all-around protection.
Channels and Distribution.
TrackStrong will be available to consumers by indirect sales. By
having a limit of intermediaries we have cut the potential costs by a lot,
making our profits larger. From the producer to the retail store then the
consumer, we have determined this is the most rewarding way to get our
product out to the market. Our indirect channel benefits the intermediary,
our product, and most importantly our consumers by cutting off any middleman costs or mark ups. The retail stores will play an important role in making
our product successful, they are transaction in selling and promoting our
product. Consumers profit by gaining expertise knowledge of our product and
having the convenience of locating our product though the retail store.
When your marketing plans involve retail stores to sell or distribute
your product to consumers, it is important to send your product to retail
stores where you know consumers will be willing to pay for more or better
products or services. This will open doors when choosing a combination of
retail pricing. We want to be able to offer TrackStrong using three pricing
methods. Cost-based pricing, competition-based pricing, or customer-based
pricing. At this stage since our product will be displayed at retail local stores,
competition-based pricing will be the best fit to use for TrackStrong. The
first step we will consider is to review the manufacturer's suggested retail as
TRACKSTRONG
21
our main starting point. This will allow us to gain an idea of the value of our
product from our manufactures perspective. Setting pricing close to our
competitors will be our key. Very low pricing will make the quality of our
product a suspect of a not very good product while setting a high price will
draw our consumers away to our competitors. A strategy that will be very
important to us is as a company is that our pricing will reflect the image of
our product. Our product will be sold in the state of Colorado, where our
segmented market will be. Retail stores that will carry our product will be
Dicks Sporting Goods, Sports Authority Sporting Goods, REI, and Fanz Sport
Apparel in state or Colorado only. Retail communication will play an
important role. Retail communication evolves as consumer media change
throughout time. Retailers display advertisements and promotions to attract
customers. Social media and mobiles communication have grown widely
opening new channels to interact with consumers. Hence, choosing the
correct retailers to sell our products is an important role to our product.
Advertising Strategy
Promoting TrackStrong will be the key that sticks into every
consumers mind. The design of the helmet down to the features that
TrackStrong provides. Our advertising strategies will consist of multiple
parts that will gain not only the attention of safety enthusiast but also
athletes that not only want to perform stunts but also the knowledge that
they have a helmet that will keep them 100% safe.
TRACKSTRONG
22
TRACKSTRONG
23
TRACKSTRONG
24
Appendix
TRACKSTRONG
25
Fig. A.
Fig.B.
TRACKSTRONG
26
TRACKSTRONG
Fig. C.
27
Fig. D.
TRACKSTRONG
28
TRACKSTRONG
29
Fig. D.
TRACKSTRONG
Fig. E.
30
TRACKSTRONG
31
TRACKSTRONG
32
References
Zipp, Yvonne. (2014, July 18). Concussion-Detecting Football Helmet Sensor
developed by Western Michigan University students. Retrieved April 1, 2015,
from http://www.mlive.com/business/westmichigan/index.ssf/2014/07/helmet_sensors_that_detect_con.html
Brain Sentry. Retrieved April 1, 2015, from http://brainsentry.com/what/
Shockbox Impact Alert Sensors. Retrieved April 1, 2015, from
https://www.theshockbox.com
Skiing Helmet Vector Clipart. Retrieved April 1, 2015, from
http://www.canstockphoto.com/vector-clipart/skiing-helmet.html
Lench, B. (2012, May 15). Underreporting of Concussions: Is Monitoring Head
Impact Exposure A Way Around The Problem? Retrieved April 5, 2015, from
http://www.momsteam.com/problem-underreporting-concussions-helmetsensors-solution-to-problem
Dziemianowicz M, Kirschen MP, Pukenas BA, Laudano E, Balcer LJ, Galetta SL.
(2012, July 13). Sport-Related Concussion Testing. Curr Neurol Neurosci Rep.
Retrieved from DOI:10.1007/s11910-012-0299-y
TRACKSTRONG
33
Apgar, J. Shopping for and Using GPS Units for Hiking and Trekking On and
Off Trail. Retrieved April 1, 2015, from http://www.nynjtc.org/content/gps-trail
Tracking System. Retrieved April 1, 2015, from http://www.trackingsystem.com/for-consumers/gps-personal-tracking-system/214-gps-trackingsnowboarders.html
Brain Injury Safety Tips and Prevention. (2015, February 16). Retrieved April
1, 2015, from
http://www.cdc.gov/headsup/basics/concussion_prevention.html
Davis, K. (2013). Engaging Gen Y in Snow Sports. Retrieved April 1, 2015,
from http://www.snowsports.org/gatekeeper/files/SIA_Engaging_GENY_in_Snow_Sports.pdf
News, C. (2011, February 21). Understanding G-force. Retrieved April 1,
2015, from http://www.cbc.ca/news/canada/understanding-g-force-1.1015232
Bogaisky, J. (2014, February 12). Retail In Crisis: These Are The Changes
Brick-And-Mortar Stores Must Make. Retrieved April 11, 2015, from
http://www.forbes.com/sites/jeremybogaisky/2014/02/12/retail-in-crisis-theseare-the-changes-brick-and-mortar-stores-must-make/
SkiHelmets.com - The Ski Helmet Source - Home. Retrieved April 11, 2015,
from http://www.skihelmets.com/
TRACKSTRONG
34