Swimspot.com Brand StrategyRAJ Manufacturing, LLC

Concordia University, IrvineMay, 2010

Candice BrownAaron CastanedaKipley Pereles

Andrea Pridham

Contents

Executive Summary..............................................................................................................3Situation Analysis................................................................................................................4

Internal EnvironmentOrganizational BackgroundProductsFinancial and non-financial resultsChannels

SWOT AnalysisCritical Issues

Target Market Analysis........................................................................................................7DemographicsPsychographics

SurveySurvey Results

Marketing Objectives.........................................................................................................10Marketing Strategies..........................................................................................................10Implementation Plan..........................................................................................................21Financial Projections........................................................................................................22Appendix............................................................................................................................25

A) Brand ModelB) Creative BriefC) Press ReleaseD) Survey ResultsE) Travel Industry Statistics

2

Executive Summary

As a new venture, Swimspot is presented with a challenge to develop the right blend of

operational and strategic imperatives to successfully enter the online swimwear market.

These strategic imperatives serve as a framework for identifying strategies that will allow

Swimspot to capitalize on market opportunities and increase its website traffic and

conversion rate. The purpose of this document is to recommend a marketing approach

that includes the right blend of market development activities to successfully secure

market traction and win customers. These recommended activities include partnership

programs, advertising, call to action incentives and website enhancements. It includes the

best combination of strategies and tactics to enable Swimspot to grow with minimum

investment generating maximum impact and results as possible.

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Situation Analysis

Organizational Background

Founded in 1967 by Raj & Marta Bhathal, RAJ Manufacturing is swimwear’s leading

house of fashion in Orange County. RAJ Manufacturing is also one of the only vertically

integrated manufacturers of premium women’s swimwear in the US. Headquartered in

Tustin, California, RAJ employs a staff of 400 at its 130,000 square foot facility, which

houses design, production, distribution and warehousing operations. One of the main

competitive advantages RAJ has is its tight inventory control and short lead times. By

producing locally, RAJ has lead times of between 10-60 days versus 4 months if suits

were being manufactured in China. RAJ Manufacturing continues to be family owned

and operated and is now run by siblings and co-Presidents Alex Bhathal and Lisa Vogel.

Products

RAJ Manufacturing creates swimsuits for a number of different brands which are either

under license or directly owned by RAJ Manufacturing. Products are classified into three

separate brand tiers: luxury, contemporary missy, and young contemporary. The luxury

brands include swimsuit products from Luxe by Lisa Vogel, Ella Moss Isla, St. John, and

Splendid. The contemporary missy brands include Athena Pick Your Fit, Tommy

Hilfiger, and Next by Athena. The young contemporary brands include Guess, Reef, and

Hurley. RAJ Manufacturing, through each of their divisions, has entry into virtually all

high-end segments of the swimwear market.

Financial and Non-Financial Results

RAJ Manufacturing by all accounts is a stable, growing company. In 2008 RAJ

expanded its facility in Tustin to accommodate new business and sales growth. In

addition, RAJ introduced a new line of swimwear in 2008, Luxe by Lisa Vogel.

Historically, RAJ Manufacturing has consistently delivered excellent results. Over each

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of the last 3 years RAJ has grown an average of 29.2% and has projected sales growth of

15-10% over the next three years.

Channels

RAJ Manufacturing is a vertically integrated swimsuit manufacturer. They are involved

in every step of the process from design, to pattern making, to cutting and sewing, to

distribution. This business model has been very successful for RAJ, and led them to the

decision to launch their online direct to consumer website, www.swimspot.com. Their

goal for this website is to capture a portion of the retail income. RAJ currently

distributes to major department stores, specialty retailers, swimwear boutiques,

international distributors, catalogs, and online retailers.

Retailers include high-end department stores such as Neiman Marcus and

Bloomingdale’s, mid-range department stores such as Macy’s, as well as swim specialty

stores and resorts like Diane’s Beachwear, Tommy Hilfiger, Guess, and the Four Seasons

Resorts. Swimsuits are also distributed globally to locations in the United States,

Canada, Mexico, South America, Europe, Asia, Australia, South Africa, and Dubai.

Swimspot.com will add their own online distribution site to the current mix. This

channel has the potential to expand their market reach and sales dramatically.

SWOT Analysis

Strengths

One of the most significant strengths of RAJ Manufacturing is their vertical integration.

This business model allows them to manufacture and deliver goods more quickly than

most competitors and also to understand and control every step of the manufacturing

process, enabling them to consistently create high quality suits. Producing swimsuits for

very well known name brands insures competitiveness and increased demand for their

product. Using the momentum they have built up with their design and manufacturing

business, RAJ is launching an innovative online retail site for their products. Their

current marketing strategy for this site is to build a strong social media presence, which

has been well implemented with their blog, Twitter, and Facebook pages.

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Weaknesses

Because RAJ is new as an e-tailor, sufficient brand equity and recognition has not yet

been established for swimspot.com. Utilizing technology such as Facebook and twitter is

a step in the right direction. These activities allow fans and followers to get to know the

company and share it with friends. Innovative use of technology will be the key to

boosting RAJ’s image with their target market. Other threats are the limited price

discounting options because RAJ cannot compete with its core customers. In addition,

there are some website navigation improvements that could be implemented.

Threats

The main threat that RAJ faces is how to market their website without undercutting or

cannibalizing sales from their retail clients. They view the website as a source of

additional income, but they do not want to loose any of their retail clients because of it.

For this reason they have decided not to utilize a marketing campaign that would be in

direct competition against their retailers. This will create more challenges for RAJ and

Swimspot. In addition, the internet marketplace is extremely crowded. Current e-

commerce competitors with strong brand presence as well as any new sites, particularly

discount sites, entering the space are threats to Swimspot.

Opportunities

RAJ and Swimspot have a number of opportunities to increase their brand exposure, site

traffic, and conversion rate. Improvements to the Swimsport site will help make it easier

to convert consumers and get return business. The marketing opportunities are centered

around building partnerships with other successful businesses, engaging consumers, and

providing additional purchase incentives.

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Strengths Weaknesses

Vertical Integration

Brand partnerships

Financial stability

Quality

New e-tailor – no brand equity for swimspot.com

Limited pricing options

Website Navigation

Opportunities Threats

Partnerships

Advertising

Call to Action Incentives

Site Enhancements

Competing with RAJ customers

Undercutting price / cannibalization

Crowded internet marketplace

Discount sites – Groupon, Ideeli, etc.

Critical Issues

There are several critical issues facing RAJ Manufacturing as it expands vertical

integration to include online retail. Price integrity to insure it does not undercut its

customers is essential. As such, offering discounted swimwear prices online is not

feasible. Further, to avoid overtly competing with its customers, RAJ has branded its

online retail storefront “swimspot.com”, which is not directly associated with RAJ. RAJ

currently seeks to increase web traffic and conversion rates on swimspot.com, targeting

key selling months of May and June.

Target Market Analysis

Demographics

With its 11 different swimwear lines, Raj Manufacturing has the ability to cover a wide

demographic of female clients. Each line targets a specific age group, together covering

a core age range of 18-55. With the young contemporary Hurley brand, the target is the

19 year old who is inspired by creativity and interested in the nomadic lifestyles of the

music and surf culture. With contemporary missy and luxury brands such as Luxe by

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Brand Age Keywords

Luxe by Lisa Vogel 29-49 modern, chic, eclecticElla Moss Isla 18-39 contemporary, stylishSt. John 35-55 sophisticated, sensibleSplendid 18-39 clean, simple, fresh

Athena 30+ suburban, flatteringTommy Hilfiger 25-45 down to earth, confidentNext by Athena 25-45 active, sporty

Guess 18-28 sexy, fashion forwardReef 16-24 surf, exotic, flirtyHurley 19 beach culture

Young Contemporary

Luxury

Contemprary Missy

Lisa Vogel, Raj can just as easily provide product for the 29-49 year old woman who is

well traveled, fashion aware, sophisticated, refined, and health conscious. They have the

brands to appeal to women ranging from Gen Y to the sophisticated country club woman

and anything in between. The swimspot.com demographic Raj wishes to target are

females ages 21-35 with an income of $70,000 or more.

Psychographics

In order to determine how to drive more traffic to the site and increase the overall

conversation rate, a series of survey questions were compiled and distributed to over 300

random women of differing ages and financial status. The survey was conducted to flush

out consumer behavior by determining who is purchasing swimsuits online, how many,

for what reason and the perception of the overall experience.

The demographics of those surveyed fit well with RAJ’s defined target market for

swimspot.com. The majority of women were a median age of 28, single, with a

household income of $50,999-$75,000. 55% of the respondents had purchased a

swimsuit online and 47% said they would do so again. 35% of the women said they

would not purchase online because of fit issues. Overall, fit was the main concern when

buying swimwear (48%).

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It was determined that 54% of consumers purchase 2-3 swimsuits per year and 67%

purchase 2 or more. Swimsuits are purchased for various activities, with tanning and

swimming being the most popular.

Factors that would influence driving traffic to the website were varied, however selection

was at the top of the list.

In terms of influencing conversion rate, respondents clearly rated price as the #1 factor

influencing a purchasing decision.

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Regarding the site itself, features that were of particular interest to respondents were

interactive sizing tools and the build your own swimsuit feature. The full results of the

survey are available in the appendix.

Marketing Objectives

The marketing objectives are as follows:

1. Drive traffic to swimspot.com2. Increase conversion rate3. Build awareness and brand equity4. Avoid undercutting or aggressively competing with RAJ customers5. Perform against target budget of $200,000

Marketing Strategies

To achieve brand awareness, increase site traffic and increase the conversion rate to

swimpspot.com, a multi-level approach focusing on several key areas is recommended:

• Partnerships

• Advertising

• Call to Action Incentives

• Site Enhancements

Partnerships

A great way to build excitement, brand awareness, and a loyal customer base is to partner

with other successful companies.

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Affiliate Program

One way to make it easy to partner is to create an affiliate marketing program. The

Affiliate Partner program consists of establishing relationships with target partners and

creating joint promotional activities and website affiliate links. There are numerous

examples of successful affiliate programs, including Amazon.com and Sephora.com.

Source: (http://en.wikipedia.org/wiki/Affiliate_marketing)

The swimspot.com Affiliate Partner Program offers a simple and convenient way to bring

swimwear fashion to partner websites, giving each affiliate partner the ability to offer its

customers access to a large and diverse selection of leading swimwear brands. Swimspot

partners earn a 6-8% commission on every product sold through their affiliate links.

Commission payments begin upon reaching $1,200 in minimum monthly sales.

Tiered Commission Structure

Commission Sales Revenue

6% $1,200

7% $6,000

8% $9,000

Each partner will be assigned a promotional code in the form of a coupon. The

prospective customer will enter into Swimspot and upon checkout enter their promotional

code, or click the link from the affiliate’s website and automatically activate the promo

code.

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Swimspot will provide a complete marketing kit, including all the sales tools, marketing

materials, and promotional items. There is no cost to join the program or monthly

membership fee. All order transactions are managed by swimspot.com.

Target partners of the affiliate program are:

• Tanning Salons• Spas, International Spa Association, Live Spa Magazine• Hotels / Resorts• Hotel booking services (such as Travelocity)• Yacht Clubs, Regatta Central

Promotional activities for each of the partners would include display advertisements,

website affiliate linking and cross promotional events.

Display advertisements would vary depending upon the type of establishment, from a

small acrylic frame to an easel board with a tear-off pad to flyers.

The cost to Swimspot to produce 2500, 8.5 x 5.5 double sided, glossy flyers would be

$350.  Easel stands with tear pad are $12.50 for 5, and acrylics with inserts are $2.30 per

piece. Additional cost savings would be available with higher volume printing.  

Affiliate Website Linking

Brand awareness and site traffic could be increased by leveraging the existing traffic of a

prospective partner’s website and directing customers to swimspot.com. Swimspot will

be able to gain access to its target audience and promote its products through banner

advertisements or link with the Swimspot logo.

In the case of a tanning salon, each salon would be encouraged to participate in

Swimspot.com’s affiliate program as described above. As each prospective customer is

redirected to Swimspot.com, the website has the capability to capture the information of

each new customer and record the transaction, thereby giving each affiliate credit for the

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sale. Tanning salons are ideal partners for Swimspot and are suited for display ads and

flyers.

10% of the US population visits tanning facilities

Total Number of Professional Indoor Tanning Facility Businesses: 25,000

The average Salon has 11 tanning beds and an average customer database of 2,200.

Total Professional Indoor Tanning Facility Customer Base: 30 million

Total Number of Professional Tanning Business Employees: 160,000

Total Economic Impact of Professional Indoor Tanning Facilities: $5 billion

Sources: (http://www.theita.com/, http://www.tanningsalonbusinessplan.com/)

In addition to the affiliate linkages, a promo could be built with tanning salons that would

include a small display space for swimspot bikinis in the salon and a free tan for each

swimsuit purchased through the affiliate program.

Events

Cross-promotional events could be actively pursued by swimspot.com on an ongoing

basis. Each affiliate partner would be approached for co-marketing sponsorship

opportunities for local promotional events thereby reducing the costs to both the affiliate

and Swimspot. These events will be hosted in February and March, prior to the peak

season to target the spring break and fashion early adopters.

Local events such as surf contests, festivals, fashion shows, and concerts will help with

brand awareness and create buzz. Using a cost-effective web tool to broadcast a live

show, users will have access to immediate promotional opportunities during the show.

The show would be posted on the swimspot.com home page as an additional feature to

capture more interest. A viral marketing approach could be adopted where the video

could be pasted on the YouTube, Facebook, Twitter and other social media websites to

attract more traffic to swimspot.com.

Other partner promotions could be negotiated as well. An example of a partnership

promo Swimspot might consider is the Glen Ivy Spa & Ayres Hotels promotion currently

on the Ayres & Glen Ivy websites. Swimspot could potentially negotiate participation in

time for this year’s season. Ayers Hotels are a growing high-end chain and are family

owned, much like RAJ. In addition, the owner is an avid yachtsman, potentially

providing inroads to other marketing partnerships and promotions.

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Advertising

Beyond partnership promotions, there are a number of advertising opportunities for

Swimspot. It is important for Swimspot to continue building brand awareness and bring

more traffic to the website. There are a few targeted advertising opportunities which

might be ideal for reaching the right audience which is aligned with Swimspot’s target

demographic. There are three areas that may be most ideal for Swimspot advertising.

Travel sites and airports reach a broad audience with disposable income who may be

vacationing and in need of a new swimsuit. Arenas provide a large audience that is

actively going to concerts or sporting events.

Travel Sites

Swimspot could do targeted advertising on travel sites at the time of booking or in a

confirmation e-mail. Travelocity, for example, has 50,000 hits per day. This again

dovetails with the partnership opportunities, or could be pursued independently as pure

advertising. Airlines as well as other travel sites are increasingly trying to provide a one-

stop-shop, including car rentals and hotel reservations for example, to attract visitors.

The strategy seems to be working, as travel industry site visits are up.

(source: http://econsultancy.com/blog/5350-compete-traffic-is-up-at-for-travel-sites-online-but-it-s-not-quite-a-comeback-2)

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The top travel industry websites are as follows:

(source: http://www.hitwise.com/us/datacenter/main/dashboard-10133.html

Swimspot should target those that offer booking services such as Expedia, Southwest

Airlines, Priceline, etc. A more detailed list of travel site web statistics may be found in

the Appendix. Cost of advertising varies, but ranges from $15 to $65 CPM and depends

upon the type of advertising, such as banner ads or e-mail ads. Haiwaiian Airlines is

another great example of a potential partner not only for advertising, but to build a whole

promotional campaign with.

Airports

Placing advertisements in airports is another recommended avenue for Swimspot to

explore. A recent study done by Arbitron (a media and marketing research firm) showed

a number of significant findings:

• Ninety-two million Americans have taken at least one round-trip airlineflight in the past 12 months (39%). 21% of Americans, or 50 million people, have flown within the past 3 months, and 11%, or 26 million people, have used air travel in the past month.• Airline Travelers are 80% more likely to have an annual household incomeof $100,000 or more. 18% of airline travelers have an annual household income of $100,000 or more, compared with only 10% of average Americans. 51% of airline travelers have a household income of $50,000 or more per year.• Airline Travelers are sophisticated shoppers. Airline Travelers are more

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likely to have a propensity for designer clothes, luxury cars and cutting-edgepersonal digital devices. They also shop more often online and spend more whenthey do shop.• Airline travel remains remarkably consistent throughout the year. Thenumber of people using airline travel does not vary significantly from month tomonth or season to season. The monthly average remains steady at around 26million Americans, and the three-month average hovers around 50 million. • 46% of Airline Travelers are spending more time at the airport. 51% spend 30 minutes or more at the airport before going through security, and 68% spend an additional 30 minutes or more in the terminal waiting to board their flight.• During longer airport waiting periods Airline Travelers take the time toread advertisements. 72% of Airline Travelers who recall noticing airport advertising displays say they take the time to read them. 82% of Frequent Flyers say they take the time to read airport advertising displays.• Airport advertising that runs for three months delivers double the reach of a one-month campaign.

Source: (http://www.arbitron.com/downloads/Arbitron_Airport_Study.pdf)

Airport advertising runs in 4-week increments and varies in cost, depending upon traffic

and ad location. Cost for the Orange County Airport is $2,000 per month. A listing of

airports and consumer traffic can be found in the appendix.

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Arenas

Arenas present another excellent advertising opportunity for Swimspot. Just in Southern

California, there are a number of major arenas which cover a wide demographic.

(source: Anaheim Convention Center)

• 10.9 million people within a 30 mile radius• 20.6 million people within a 90 mile radius• So Cal represents 58% of California’s total population

A few different options exist for arena advertising, such as the LED banner around the

arena, print ads in the programs, and ticket stub ads. Ad costs at the Honda Center, for

example, would be $120,000 annually for the LED banner at every single event, $5,000

for a program print ad, and $10,000 for ticket stub ads. The best option for Swimspot

would likely be targeted ticket stub ads for events with the demographic profile matching

that of Swimspot’s target consumers.

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Call to Action Incentives

Refer a Friend Program

Upon completing a purchase, a customer opts in to send an email to friends announcing

that they have just made a purchase at swimspot.com. In turn, the email will include a

10% off coupon that the customer’s friends may use towards a new purchase of $100 or

more. For every new friend that buys a product, the customer receives a $20 “bikini

bucks” credit toward their next purchase. The Bikini Bucks are redeemable online as a

cash discount.

Give Away Items

To further motivate consumers to convert to purchasing a swimsuit, Swimspot could

offer some give-away items. Inexpensive items such as a sarong, cinch bag, or flip flops

are a nice perk for customers and increase their perceived value without discounting the

list price of the swimsuits.

Costs for the away items are estimated at $2.00 per piece for the sarong, $1.50 for the

cinch bag, and $2.00 for the flip flops. If RAJ were to manufacture the items in-house,

costs could likely be further reduced.

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Website Enhancements

In order to increase site traffic and conversion rates as well as page views, there are a

number of enhancements recommended to the Swimspot website. Navigation and ease of

selection are extremely important, as are key features indicated by consumers. The

suggested website enhancements are as follows:

Bikini Builder Enhancementso Additional selectionso Model Selection Feature

Interactive Bikini Sizing Toolo Suggestions based on body type & measurements

Navigation Improvementso By Styleo By Coloro By Priceo By Feature (reversible)

Bikini Builder Enhancements

Survey responses indicated that the top two features consumers would like to see when

purchasing a swimsuit online are the Bikini Builder option and an Interactive Sizing

Tool. Swimspot.com already incorporates a Bikini Builder tool, however, there are a

few recommendations that could be implemented to increase the site’s conversion rate.

Enhanced selection criteria, broader selection, and a variety of models will improve the

customer’s interaction with this tool.

The pieces that are available in the Bikini Builder tool are limited at this time. This tool

would be greatly enhanced if all of the suits available on swimspot.com were available

for selection. An increase in selection would allow the customer to be more creative with

her style and could improve the customization experience for her.

This same survey also revealed that the main reservations customers have regarding

purchasing a swimsuit online is the fit of the suit. Some of these reservations could be

alleviated by providing the customer the option to select a model that has a similar body

type. The present setup of the Bikini Builder tool only shows one model for each brand.

It is commonly known that each suit piece will look different on women with different

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body shapes. Allowing the customer to select a model that has a similar shape to her may

elevate the level of confidence she has in the fit of the suit. Further, having models with

different hair color and skin tone will help the consumer to have a more personalized

Swimspot experience that is tailored to her.

Interactive Bikini Sizing Tool

Another option to consider for enhancing the site would be to develop an interactive

sizing tool. Currently, Swimspot has sizing charts for each brand. If the consumer could

input her own measurements, the site could then return the correct size for each suit the

customer has interest in. The site could also provide some style recommendations based

on the customer’s preferences (click history) and that work well with the customer’s body

type. Further, the site could have an alert at checkout if the customer has inadvertently

selected a size that does not work for her.

Site Navigation

Currently, a customer must select a brand name or navigate via the filters. While this

gives the consumer the ability to narrow choices, there may be other desired navigation

filters. For example, if the customer could select a bra style of halter or tankini and a

pant style of hipster or shorts, the tool could display all tops and bottoms of the specified

style regardless of the brand. Other selection criteria could be color, price, or special

features such as reversible. Combining the ability to refine the list of styles displayed in

the shop section as well as the Bikini Builder tool will not only enhance the customer’s

experience, but will help sell the bikinis based on features the customer prefers.

The costs related to these three enhancements include the modeling costs, photographer

costs, and programming costs. However, these are all enhancements to the existing

features of swimspot.com and not completely new development.

RAJ Manufacturing needs to take advantage of the opportunities created by new

technology. For example, if they were to build an iPhone application for the Swimspot

they could expand their technological presence. This application could provide the users

with up to date swimming and surfing news and events as well as the “Build Your

Bikini” tool which could be used to drive the consumer to the website.

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Implementation Plan

Because the swimsuit season is already ramping up for this year, the implementation timeline for many of these marketing programs is relatively short. Some may be implemented as a small-scale test this year and ramp up to a full-blown campaign next season. It is recommended that each program have a project lead to manage the

implementation. The following timeline outlines the implementation schedule:

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Partnerships May June July August September October November December

Affiliate ProgramDevelop Affiliate program details, legal, etc.Develop Marketing materials / collateralDevelop Target Partner ListImplement web tackingMarket program to target listYear 1 goal = 15 affiliate partners 3 4 3 2 1 1 1

Cross Promotional EventsGlen Ivy Spa & Ayres Hotels promoNegotiate with Ayers & Glen IvyDevelop Marketing CollateralImplement web linking and discounts

AdvertisingTravel sites

Choose target site & ad typeSet budget and periodsDesign adRun Ad

AirportsSelect airportDisplay design & Production3 month Ad block

ArenasSelect Venue, ad type, & eventsNegotiate packageImplement discount codes

IncentivesRefer a Friend

ProgrammingGive Away items

Order / Manufacture ItemsDesign promosWeb programming

Website ImprovementsProgrammingPhoto layout / shoot

Financial Projections

ROI Projections by Project

PartnershipsAffiliate Program Annual

Startup costs per affiliate: $77 $1,160

500 flyers $702 Easel Stands $5

1 Acrylic stand $2

Monthly Commissions:$1,200 =6% $72

$6,000 =7% $420$9,000 =8% $720

Projected Number of Affiliates 15Proj. Monthly sales per affiliate 10 suits

Projected Revenue $18,000 $216,000

Projected Cost $30,353ROI (return per dollar invested) $7.12

Cross Promotional Events (per event)Example: Glen Ivy Spa & Ayres Hotels

Marketing Collateral $2,000

Discounts 10%Glen Ivy Annual visitors 192,000

Swimspot Sales Forecast = 2% 3,840Average sale = $120 $460,800

less 10% = $108 $46,080Projected Revenue $460,800Projected Cost $48,080ROI $9.58

AdvertisingTravel sites Annual

Site Traffic (Example: Expedia, 51% female, 10% target) 1,393,269Click-through rate (4.9%) 68,270Total Conversions (1.5%) 1,024 Projected Revenue @ 4 months $122,886 $491,545Projected Cost ($25 CPM) @ 4 months $34,832 $139,327ROI $3.53

Airports (Example: Orange County)Display design & Production $4,0004 week ad increment $2,0003 month block 2 x per year $6,000 $12,000Monthly Traffic (females) 332,657Projected Response Rate (2%) 6,653Projected Conversion Rate (1.5%) 100Projected Revenue $11,976 $143,708Projected Cost $16,000ROI $8.98

ArenasTicket Stub ads $10,000Avg. Number of (non Ducks) event Tickets 899,240Projected Response Rate (2%) 17,985Projected Conversion Rate (1.5%) 27010% off incentive $3,237Projected Revenue $32,373Projected Cost $13,237ROI $2.45

IncentivesRefer a Friend

Programming @$60/hr, 10Bikini Bucks per friend that buysNumber of monthly Friend referrals10% off for friend's initial purchase

Projected RevenueProjected Cost

Give Away itemsSarongCinch BagFlip Flops

Navigation ImprovementsProgramming @$60/hr, 25

Interactive Bikini Sizing ToolProgramming @$60/hr, 50

Bikini BuilderAdditional selections/filters (programming 15hrs)Model Selection Feature

ROI - Website Improvements & Give-Away'sSwimspot visitors (avg. 3,000 / day)Current Conversions (.43%)Current RevenueIncreased Conversions (1.5%)Increased RevenueProjected Incremental Revenue

Total RevenueTotal Costs

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Affiliate ProgramStartup costs per affiliate:

500 flyers2 Easel Stands1 Acrylic stand

Monthly Commissions:$1,200 =6%$6,000 =7%$9,000 =8%

Projected Number of AffiliatesProj. Monthly sales per affiliate

Projected Cost

Cross Promotional Events (per event)Example: Glen Ivy Spa & Ayres Hotels

Marketing CollateralDiscountsGlen Ivy Annual visitors

Swimspot Sales Forecast = 2%Average sale = $120

less 10% = $108Projected RevenueProjected Cost

Travel sites

Click-through rate (4.9%)Total Conversions (1.5%)Projected Revenue @ 4 months

Airports (Example: Orange County)Display design & Production4 week ad increment3 month block 2 x per yearMonthly Traffic (females)Projected Response Rate (2%)Projected Conversion Rate (1.5%)Projected RevenueProjected Cost

ArenasTicket Stub ads Avg. Number of (non Ducks) event Tickets Projected Response Rate (2%)Projected Conversion Rate (1.5%)10% off incentiveProjected RevenueProjected CostROI $2.45

IncentivesRefer a Friend Annual

Programming @$60/hr, 10 600Bikini Bucks per friend that buys $20Number of monthly Friend referrals 1010% off for friend's initial purchase $120

Projected Revenue $1,200 $14,400Projected Cost $320 $4,440ROI $3.24

Give Away itemsSarong $2.00Cinch Bag $1.50Flip Flops $2.00

Website ImprovementsNavigation Improvements

Programming @$60/hr, 25 $1,200

Interactive Bikini Sizing ToolProgramming @$60/hr, 50 $3,000

Bikini BuilderAdditional selections/filters (programming 15hrs) $900Model Selection Feature

Photography $2,000Models $2,500

ROI - Website Improvements & Give-Away'sSwimspot visitors (avg. 3,000 / day) 1,095,000Current Conversions (.43%) 4,709Current Revenue $565,020Increased Conversions (1.5%) 16,425Increased Revenue $1,971,000Projected Incremental Revenue $1,405,980Projected Cost ($2 per piece) + Improvement costs $42,450ROI $33.12

Total Revenue $2,764,806Total Costs $293,887ROI all Recommendations $9.41

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Cash Outlay Year 1

FinancialsYear 1 Cash Outlay

PartnershipsAffiliate Program Annual

Startup costs affiliates: $1,160

Cross Promotional Events (per event)Marketing Collateral $2,000

AdvertisingTravel sites Annual

$25 CPM / to budget $162,840

Airports (Example: Orange County)3 month block 2 x per year $12,000

ArenasTicket Stub ads $10,000

IncentivesRefer a Friend Annual

Programming @$60/hr, 10 600

Give Away itemsInitial Inventory Investment $1,800

Website ImprovementsNavigation Improvements

Programming @$60/hr, 25 $1,200

Interactive Bikini Sizing ToolProgramming @$60/hr, 50 $3,000

Bikini BuilderAdditional selections/filters (programming 15hrs) $900Model Selection Feature

Photography $2,000Models $2,500

Total $200,000

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Appendix

Appendix A – Brand Model

Raj Manufacturing/Swimspot.com Brand Model

Current Brand Position: "An online swimwear site built on 43 years of success"

Future Brand Objective: “The Convenient Luxury Swimwear Supplier”

Conceptual Target: “The Affluent and Up-To-The-Minute”The women who frequent this site have the income to purchase seasonal luxury items. They are comfortable and familiar with both the internet, and purchasing products via the internet. They are heavy influencers in terms of their fashion style and sense.

Core Desire: “Looking Good Does Not Have To Be Complicated”There are over 10 major swim brands to choose from on the site. They can set their own trends, using the selection and on-line tools to their advantage. Aside from selection, the navigation of the site and turnaround time is both unproblematic and immediate. The ultimate attribute the copious and up to the minute not only desire but rather expect.

Role of the Brand: “To Provide High Quality Products And Excellent Service”

Compelling Truth:Swimspot.com offers luxury brands and service for the fashion forward modern woman who desires convenience and a personal touch.

Selling Idea: “The perfect spot to suit your needs”

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Appendix B – Creative Brief

Raj Manufacturing/Swimspot.com Creative Brief

Target: Women, between ages 21-35, who frequently participate in sun or water related activities. They believe in high quality products and are willing to pay for them. They are up to date on the latest technologies and frequently use the internet to make purchases.

Ad Objectives: Drive traffic and increase conversion rate on the website

Insight:“A bathing suit is a very personal item. I want to look good, I want selection, and I want it fast.”

Promise:With Raj Manufacturing’s superior workmanship and unfailing shipping to add to the immense selection of swimsuits, they deliver a sentiment of satisfaction.

Support:-Vertical, Quick Response production system-Excellence in customer service, quality, and design-Broad selection of the most fashion forward brands

Tone:-Personal-Confident-Influential

Assignment:Use the swimspot website. Have customers submit creative testimonials. Stream testimonials on social networks creating a web that leads back to swimspot.com.

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Appendix C – Press Release

SwimSpot Unveils the Details of Its Affiliate Program Expected to Bolster Revenues in 2010

Tustin, California – May 4th, 2010 – Tapping into the key channel and nebulous world of internet traffic secured with a commission program will seal the deal for the swimsuit retailer, backed by Raj Manufacturing. Swimspot serves as the company’s launch into the direct to consumer online business. The goal for this website is to capture a portion of the retail income by attracting key channel partners to expand the reach of its online service to new vertical markets.

Swimspot intends to capitalize on the explosion of consumer presence online that has fueled the growth of online retailers the last several years. The Affiliate Program represents Swimspot’s commitment to expand its online retail sales capabilities. The Affiliate Program rewards participants with economic incentives, co-marketing opportunities and promotional activities.

Renatta Carlson has been operating a tanning salon for twelve years and has seen the highs and lows of the trade. With the recent economic conditions, Ms. Carlson welcomes cost-effective marketing models that provide the opportunity to expand the salon’s customer base.

"Salons come and go," says Ms Carlson, “and those businesses that explore innovative ways to adapt to present market conditions maintain a presence.”

Other affiliate partners such as Live Spa Magazine value the new website’s interactive tools and enhancements. Swimspot has invested in a major overhaul of its website aimed at improving the customer experience by adding new features that include an interactive bikini sizing tool, mini-website catered to their partner’s audience, and an online community with product reviews, product comparisons and more.

Founded in 1967 by Raj & Marta Bhathal, RAJ Manufacturing is swimwear’s leading house of fashion in Orange County. RAJ Manufacturing is also one of the only vertically integrated manufacturers of premium women’s swimwear in the US. Headquartered in Tustin, California, RAJ employs a staff of 400 at its 130,000 square foot facility, which houses design, production, distribution and warehousing operations. One of the main competitive advantages RAJ has is its tight inventory control and short lead times. By producing locally, RAJ has lead times of between 10-60 days versus 4 months if suits were being manufactured in China.

Contact:

Alex Bhathal, CEOwww.SwimSpot.comPh: 714.838.3110###

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Appendix D -Survey Summary

TOTAL SURVEYS 3111. What are your main considerations when buying swimwear?    

Style 117 28%Price 76 18%

Fit 204 48%Brand 21 5%Other 4 1%

2. How many swimsuits do you purchase annually?    1 90 33%

2-3 144 54%4-5 28 10%

6 7 3%

3. How do you stay updated on the hottest styles?    Magazines 213 57%

Celebrity Watching 22 6%Television 58 15%

Blogs 30 8%Internet Sites 44 12%

Other 8 2%

4. What activities do you typically buy swimsuits for?    Surfing 23 5%

Tanning 172 37%Parties 58 12%

Swimming 166 35%Exercise 33 7%

Other (Leisure, Vacation, Laying Out ) 17 4%

5. Would you purchase a swimsuit online again? If no, why not?    

Yes 148 55%No 120 45%

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5. Would you purchase a swimsuit online again? If no, why not?    

Yes, I would purchase a swim suit online again. 114 47%No because of : Fit Issues 85 35%

Transaction/ Payment Problems 3 1%Shipping Problems 9 4%

Poor Quality of Product 9 4%Product didn't look like it did online 23 9%

I have never purchased a swimsuit online 0 0%

6. What would attract you to an online swimwear retail site?    Convenience 95 15%

Word of Mouth 98 16%Promotions 79 13%

Selection 119 19%Customization 64 10%

Return/Ship Policy 99 16%Company Reputation 72 12%

7. Once on the website, what factors influence your decision to actually purchase the swimsuit?

Price 206 40%Return/Ship Policy 137 26%

Site Security 59 11%Promotion Codes 45 9%

Ease of shopping cart 49 9%Urgency-Only 1 left! 21 4%

8. Are there certain features you would like to see on swimwear websites? Interactive Sizing Tools 157 35%

Suggestions 56 13%Price Comparison Tool 62 14%

Build Your Own Swimsuit Tool 158 36%Other 10 2%

9. How do you hear about new shopping sites?    Friends 203 43%

Blogs 63 13%Radio/Television/Magazines 41 9%

Online Advertisements 101 22%Website Review Forums 47 10%

Other Websites 12 3%

10. Please tell us a little about yourself.    Age: (Median Age) 28  

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Married 78 33%In a Relationship 51 22%

Divorced 4 2%Single 100 43%

Widowed 2 1%

Household Income    0-$25,000 33 17%

$25,999-$50,000 19 10%$50,999-$75,000 87 46%

$75,999-$100,000 19 10%$100,000+ 32 17%

Appendix E – Travel industry statistics

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Source (http://www.iaateam.com/advertise/demographics.html)

Expedia, Inc. DemographicsMonthly Unique Visitors: 27,319,000Women: 51%Men: 49%Children: 56%% with HH Income above $75K: 49%Taken Personal Domestic Trip in Past Year: 77%% over 35 years of age: 61.63%Married: 63%

Online Domestic Travel Spending (Past 6 mths) Bought Airline Ticket: 43.0%Made Hotel Reservation: 39.0%Made Car Rental Purchase: 21.0%Spent over $500 on Online Travel Products: 41.6%

Source: Media Metrix, 2006

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Airport Traffic Statistics

State City Airport Traffic

AUS Coffs Harbour Coffs Harbour Regional Airport 330,000

NZ Wanganui Wanganui Airport 45,000

AUS Broome Broome Airport 300,000

AUS Dubbo Dubbo Airport 158,000

NZ Gisborne Gisborne Airport 122,000

NZ Invercargill Invercargill Airport 250,000

CARRIACOU Carriacou Laureston Airport

NZ New Plymouth New Plymouth Airport 270,000

AUS Newcastle Newcastle Airport 1,145,000

AUS Proserpine Whitsunday Coast Airport 240,000

Puerto Plata

Samana

Santo Domingo

NZ Tauranga Tauranga Airport 170,000

AUS Townsville Townsville Airport 1,485,000

ST. KITTS Basseterre Robert L. Bradshaw International Airport

BELIZE Belize City Philip S.W. Goldson International

BARBADOS Bridgetown Port Barbados Cruise Terminal

AUS Gladstone Gladstone Airport 160,000

NZ Hamilton Hamilton International Airport 450,000

JAMAICA Jamaica Norman Manley International Airport

BONAIRE Kralendijk Bonaire International Airport N.V.

AUS Mount Isa, Qld Mt Isa 163,000

BAHAMAS Nassau Lynden Pindling International Airport

AUS Queensland Mackay Airport 745,000

NZ Queenstown Queenstown Airport 700,000

AUS Rockhampton, Qld Rockhampton Airport 656,000

GRENADA St. Georges, Point Salines Intl Airport

ANTIGUA St. John's V C Bird International Airport

NZ Taupo Taupo Airport 66,000

AB Edmonton Edmonton International Airport

AK Anchorage Anchorage International Airport 5,235,928

Fairbanks Fairbanks International Airport 898,152

Juneau Juneau International Airport 807,650

Kenai Kenai Municipal Airport 189,440

AL Dothan Dothan Regional Airport 96,038

Huntsville Huntsville International Airport 1,214,410

Mobile Mobile Regional Airport 607,024

Montgomery Montgomery Regional Airport 362,462

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AR Bentonville Northwest Arkansas Regional Airport 1,148,112

ARUBA Aruba Aeropuerto Internacional Reina Beatrix

AZ Bullhead City Laughlin Bullhead International Airport 218,732

Flagstaff Flagstaff Pulliam Airport 88,476

Tucson Tucson International Airport 4,357,496

Yuma Yuma International Airport

BC Abbotsford Abbotsford Airport

CA Bakersfield Kern County Air Terminal 328,800

Fresno Fresno Yosemite International Airport 1,272,064

Long Beach Long Beach Airport 2,830,560

Monterey Monterey Peninsula Airport 431,594

Oakland Oakland International Airport 14,288,254

Sacramento Sacramento International Airport 10,764,926

San Jose Norman Y. Mineta San Jose International Airport 10,510,514

CO Aspen Aspen/Pitkin County Airport 364,536

Colorado Springs Colorado Springs Airport 2,081,758

Durango Durango-La Plata County Airport 232,620

Gunnison Gunnison Crested-Butte Regional Airport 85,244

Montrose Montrose Regional Airport 185,164

CRAeropuerto Costa Rica Juan Santamaria Internacional

CT Windsor Locks Bradley International Airport 6,462,748

CURCuracao, Netherlands Antilles Hato International Airport

NZ Dunedin Dunedin Airport 542,000

FL Clearwater St.Petersburg-Clearwater Intl Airport 744,566

Daytona Beach Daytona Beach International Airport 680,656

Destin Destin Airport

Eglin Air Force Base Northwest Florida Regional Airport 763,984

Fort Myers Southwest Florida International Airport 7,973,856

Ft. Lauderdale Ft. Lauderdale-Hollywood Intl Airport 22,158,500

Gainesville Gainesville Regional Airport 284,136

Melbourne Melbourne International Airport 274,204

Naples Naples Municipal Airport 27,968

Panama City Panama City-Bay County International Airport 319,896

Pensacola Pensacola Gulf Coast Regional Airport 1,664,316

Sanford Orlando Sanford Domestic Airport

Sanford Orlando Sanford International Airport 1,971,194

Sarasota Sarasota Bradenton Intl Airport 1,564,994

Tallahasse Tallahassee Regional Airport 924,466

West Palm Beach Palm Beach International Airport 6,950,690

GA Albany Southwest Georgia Regional Airport 77,516

Augusta Augusta Regional Airport 309,116

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Savannah Savannah- Hilton Head International Airport 1,985,250

Valdosta Valdosta Regional Airport 70,188

GUAM Tamuning A.B. Won Pat International Airport 2,840,514

IA Cedar Rapids Eastern Iowa Airport 1,060,834

Des Moines Des Moines 1,926,462

Dubuque Dubuque Regional Airport 91,756

Waterloo Waterloo Airport 57,760

ID Idaho Falls Idaho Falls Regional Airport 333,006

Lewiston Lewiston-Nez Perce County Regional 139,452

IL Bloomington Central Illinois Regional Airport 525,960

Peoria General Wayne A Downing Peoria Int'l Airport 542,732

Champaign University of Illinois-Willard Airport 224,880

Springfield Abraham Lincoln Capital Airport 124,276

IN Indianapolis Indianapolis International Airport 8,194,796

South Bend South Bend Regional Airport 797,000

KS Wichita Wichita Mid-Continent Airport 1,538,248

KY Lexington Blue Grass Airport 1,041,520

Louisville Louisville International Airport 3,824,990

LA Alexandria Alexandria International Airport 291,522

New Orleans Louis Armstrong New Orleans International 7,540,492

Lafayette Lafayette Regional Airport 438,884

Monroe Monroe Regional Airport 218,022

Shreveport Shreveport Regional Airport 614,624

MA Hyannis Barnstable Municipal Airport 408,304

MB Winnipeg Winnipeg James Armstrong Richardson International Airport

ME Bangor Bangor International Airport 693,376

Portland Portland International Jetport 1,639,990

MI Flint Bishop International Airport 1,065,242

Grand Rapids Gerald R. Ford International 1,985,078

Kalamazoo Kalamazoo/Battle Creek 377,984

Lansing Capital Region International Airport 513,126

MN Duluth Duluth International Airport 339,942

Rochester Rochester International Airport 320,904

MO Kansas City Kansas City International Airport 11,666,128

MS Columbus Golden Triangle Regional Airport 55,042

Gulfport Gulfport - Biloxi International Airport 924,832

Jackson Jackson-Evers International Airport 1,435,152

MT Butte Bert Mooney Airport 73,688

NB Dieppe Greater Moncton International Airport

NC Fayetteville Fayetteville Regional Airport 350,864

Greensboro Piedmont Triad International 2,178,872

New Bern Coastal Carolina Regional Airport 208,210

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Raleigh-Durham Raleigh-Durham International Airport 9,959,106

ND Bismarck Bismarck Municipal Airport 365,836

Fargo Hector International Airport 601,696

NE Lincoln Lincoln Airport 340,210

Omaha Omaha Eppley Airfield 4,325,908

NZ Nelson Nelson Regional Airport 850,000

NF St. Johns St. Johns International Airport

NH Manchester Manchester Boston Regional Airport 3,841,822

Portsmouth Pease International Tradeport 116,114

NM Albuquerque Albuquerque International Sunport 6,478,192

NOVA SCOTIA Enfield Halifax Robert L. Stanfield Int'l. Airport

NV Elko Elko Regional Airport 57,046

NY Albany Albany International Airport 2,847,508

Ithaca Tompkins Regional Airport 171,330

New Windsor Stewart International Airport 910,090

Syracuse Syracuse Hancock International Airport 2,358,226

White Plains Westchester County Airport 1,646,956

NZ Rotorua Rotorua Airport 310,000

OH Cleveland Cleveland-Hopkins International Airport 11,142,438

Columbus Port Columbus International 7,654,698

North Canton Akron-Canton Airport 1,383,206

Swanton Toledo Express Airport 339,358

Vandalia Dayton International Airport 2,825,516

OK Tulsa Tulsa International Airport 3,242,034

ON Mt. Hope John C. Munro International Airport

Ottawa Ottawa International Airport

PA Allentown Lehigh Valley International Airport 853,374

Avoca Wilkes-Barre Scranton Intl Airport 438,218

Erie Erie International Airport, Tom Ridge Field 284,730

Latrobe Arnold Palmer Regional Airport 35,186

Middletown Harrisburg International Airport 1,286,570

State College University Park Airport 288,320

PEI Charlottetown Charlottetown Airport

AUS Gold Coast Gold Coast Airport 3,900,000

AUS Hervey Bay Fraser Coast Airport 224,000

RI Warwick T. F. Green Airport 4,999,354

SC Florence Florence Regional Airport 92,904

Hilton Head Island Hilton Head Island Airport 169,580

West Columbia Columbia Metropolitan Airport 1,241,836

SD Rapid City Rapid City Regional Airport 475,384

SK Regina Regina Airport

Saskatoon John G. Diefenbaker Airport

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SM Saint Maarten Princess Juliana International Airport

JAMACIA Montego Bay Sangster International Airport

St. Lucia Castries George F. L. Charles Airport

Castries Hewanorra International

TN Blountville Tri-Cities Regional Airport 425,618

Knoxville McGhee Tyson Airport 1,777,990

Nashville Nashville International Airport 9,775,850

TX Amarillo Rick Husband Amarillo International Airport 916,456

College Station Easterwood Airport 181,790

Corpus Christi Corpus Christi International 844,782

Dallas Fort Worth DFW International Airport 56,964,834

El Paso El Paso International Airport 3,339,584

Harlingen Valley International Airport 885,676

Killeen Killeen-Fort Hood Regional Airport

Laredo Laredo International Airport 227,948

Lubbock Lubbock International Airport 1,155,174

McAllen McAllen Miller International Airport 827,386

Midland Midland International Airport 983,694

San Antonio San Antonio International Airport 7,823,452

Tyler Tyler Pounds Regional Airport 156,964

Waco Waco Regional Airport 152,820

VA Charlottesville Albemarle Airport 374,156

Newport News Newport News/Williamsburg Intl Airport 1,026,762

Norfolk Norfolk International Airport 3,734,614

Weyer's Cave Shenandoah Regional Airport 9,814

VI St. Croix Henry E. Rohlsen Airport 364,934

St. Thomas Cyril E. King Airport 1,199,018

VT South Burlington Burlington International Airport 1,406,372

W.I. Nevis Vance W. Amory International Airport

WA Pasco Tri-Cities Airport 485,576

Pullman Pullman-Moscow Regional Airport 49,712

Yakima Yakima International Airport 144,032

Washington Seattle Seattle-Tacoma 30,838,232

WI Green Bay Austin Straubel International Airport 880,352

Madison Dane County Regional Airport 1,567,874

Milwaukee Mitchell International Airport 7,502,690

Rhinelander Oneida County Airport 75,216

Source: (http://www.iaateam.com/dynamicpages/linkspage.aspx)

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