Senior Capstone Project (New Product Idea)

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2014 Marketing Plan

Technology That Fits

Team Leader Contact Info:

Tim Ranglos

(970) 420-4914

[email protected]

Presented by:

Tim Ranglos

Brandon Ast

John Dettling

Taylor Wyckoff

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Executive Summary

The fly fishing industry has long been an attractive market for many entrepreneurs to enter.

Fly fishermen are known for using some of the oldest techniques and equipment to catch trout.

However; the industry is changing in many ways. Technology has begun to find its way into the

sport, and finding a way to bring innovation to the river will help separate many companies within

the industry.

By capitalizing on the growing trend of wearable technology, and taking advantage of the

recent increase in participation in the sport, we have developed a pair of “smart” polarized

sunglasses that will change the way people fish. Many fly fishermen face a common problem

known as “matching the hatch”. We have solved this problem by developing a pair of sunglasses

which scan the rivers environment and provide the angler with valuable information to help

him/her catch more fish. Other benefits of our product include current weather patterns, GPS, an

HD camera, and a fully customizable design to match the trendy styles of today’s avid fly

fishermen.

A combination of high disposable income and a passion for using premium products while

on the river, means fly fishermen are an attractive niche to pursue. Style is becoming an important

characteristic for fly fishermen and finding ways to keep up with the latest trends will become

increasingly important in the coming years.

Because we are selling a premium product which takes significant knowledge and skill, we

are targeting the “avid” fly fisherman, who spends a significant amount of days on the river. The

size of our target amounts to 395,314 people. At the years end, we are expected to generate a profit

of $3,854,830.65.

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Table of Contents

1. Description of New Product .................................................................................................. 5

A. Type of New Product ......................................................................................................... 5

B. Product Analysis ................................................................................................................ 6

a. Visual ............................................................................................................................... 6

b. Features ........................................................................................................................... 7

C. Competitive Advantage (Level one and Level two) ........................................................ 7

2. Opportunities and Issues Analysis (SWOT) ....................................................................... 8

3. Target Market Strategy ........................................................................................................ 9

A. Primary Customer Target ................................................................................................. 9

a. Primary Target Market ................................................................................................. 9

b. Estimated Size of Target .............................................................................................. 11

B. Attractiveness of Target .................................................................................................. 11

C. Additional Targets to Consider in the Future ............................................................... 11

4. Positioning Strategy ............................................................................................................. 12

5. Marketing Objectives .......................................................................................................... 12

6. Marketing Mix Strategies ................................................................................................... 15

A. Product .............................................................................................................................. 15

a. Product Accessories...................................................................................................... 16

b. Branding Strategies ...................................................................................................... 16

c. Stage of the Product Life Cycle ................................................................................... 16

B. Place .................................................................................................................................. 17

a. Direct Distribution ....................................................................................................... 18

b. Indirect Distribution .................................................................................................... 18

c. Additional Channels to Consider in the Future (beyond First Year)...................... 20

C. Price ................................................................................................................................... 21

D. Promotion ......................................................................................................................... 22

a. Magazine ....................................................................................................................... 23

b. Internet/Website ........................................................................................................... 27

c. Public Relations ............................................................................................................ 31

E. Summary of Marketing Mix ........................................................................................... 35

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7. One Year Time Schedule for Implementing Marketing Plan ......................................... 36

A. Strategy ............................................................................................................................. 36

B. Table .................................................................................................................................. 38

8. Projected Profit and Loss Statement ................................................................................. 40

9. References/Source Information .......................................................................................... 44

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1. Description of New Product

A. Type of New Product

As a new to the world product, we have developed a pair of “smart” polarized sunglasses which

will change the way fly fishermen participate in the sport. We call this product “FlyZon” smart

sunglasses. Fly fishing requires a vast amount of focus and skill. To be successful at catching a

trout it is crucial to understand the environment in which you are fishing. Everything from weather

patterns, time of day/year, and even air pressure can have a significant impact of the success of

catching fish.

This product will scan the rivers environment using smart chip technology and provide

valuable information to the fly fisherman. Everything from weather patterns and forecasts to the

air pressure will be provided. Our product will also solve a problem many fly fisherman face

known as “matching the hatch”. This problem requires the angler to recognize the exact type of

insect the trout are currently feeding on and use an artificial fly that matches the exact insect. This

can be an extremely difficult and time consuming task because hundreds of different insects can

hatch on a river at any given time. Weather patterns, time of year, and air temperature are all

important factors when determining what insects are hatching on the river. The glasses will detect

which insects are currently hatching on the river and tell fishermen the exact name of the insect

and offer recommendations as to which artificial fly to use. The glasses will also detect where fish

are actively feeding on the surface of the water and let a fisherman know exactly where to cast.

Other features include weather tracking and GPS to help the fisherman better predict weather

patterns. The sunglasses will also come with a front facing camera allowing the fishermen to take

pictures and videos of their adventures on the river. Because many people use prescribed glasses

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for better vision, we will offer customizable sunglasses allowing for prescription. Other

customizable options will be available such as color and design options.

B. Product Analysis

a. Visual

Figure 1

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b. Features

Table 1

Features Benefits

“Smart Chip” technology Provide angler with information to catch fish

more successfully

Front facing HD camera Allows angler to record memorable

experiences on the river

Fully customizable Unique and personable

GPS Saves angler time

Design Sleek and stylish

C. Competitive Advantage (Level one and Level two)

The fly fishing industry, which is a niche market, is not crucial to the success of large

companies that have similar products, such as Google Glass. This will act as a source of security

for our product. To prevent competitors within the fly fishing industry from replicating our

product, we plan to use a patent on the software application and chip technology. We also plan to

gain a sustainable competitive advantage by creating a level 1 and 2 competitive advantage.

Level 1

Our level 1 competitive advantage will use a differentiation strategy in which our

product will be perceived as unique in the industry. We will do this by providing superior

technology, product features, and customization. Because our product will be perceived as

unique it will enable us to charge premium price and help cover the increased costs due to

superior product features and customization.

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Level 2

To gain a level 2 competitive advantage, we plan to reach out to multiple of the best

fly fishing guides in the industry and seek their expertise and knowledge of the sport.

Creating the very best product in this category through knowledge, expertise, and

technology, will act as a core competency and barrier to competitors.

2. Opportunities and Issues Analysis (SWOT)

Table 2

Strengths Weaknesses

Expertise and knowledge

Product quality

Customization personalization

Limited brand equity (unknown)

Product use is limited to fly fishing

Inconsistent cash flow stream (due to

seasonality

Opportunities Threats

Wearable tech industry is growing1

Participation in outdoor sports is

expected to increase

Disposable income is projected to

increase2

License prices & regulations

Construction, fuel prices (people have

to drive to fish)

Poor weather conditions

1 Transparency Market Research. (2014). Wearable Technology Market- Global Scenario,Trends, Industry Analysis,

Size, Share And Forecast 2012-2018. Albany NY: Transparency Market Research

2 Kaczanowska, A. (2013, August). IBIS World report: Hiking &Outdoor Equipment Stores in the US. Retrieved

October 21,2014, from IBISWorld database

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S-O Connections3

With the expected increase in disposable income (2.9%) in 2015, more people will be

willing to spend on premium priced products (IBISWorld, 2013).

The expected increase in participation in outdoor sports expected to rise to 19.2% in the

United States by 2018, which represents an annualized increase of .5% from 2013, means

more Americans a will have a greater interest in outdoor sports and will spend more money

on recreation (IBISWorld, 2013).

W-T Connections

Poor weather conditions during prime fishing season could reduce spending on equipment

and reduce major cash flow streams.

A company with greater brand equity could enter the market with a similar product.

3. Target Market Strategy

A. Primary Customer Target

a. Primary Target Market

While the estimated number of U.S Fly Fishermen is 3.838 million people, as of 2011, we plan

to target a more specified group of fly anglers who we believe will be more interested in our

3 Kaczanowska, A. (2013, August). IBIS World Report: Hiking &Outdoor Equipment Stores in the US. Retrieved

October 21,2014, from IBISWorld database

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product4. Because our product will have a premium price and variety of features, we believe our

customers will primarily consist of fly fishing enthusiasts who have multiple outings per year. We

will call our target market “Avid Fly Fishermen”, and they have the following characteristics5:

4 Southwick Associates, Inc. (2012). Survey of U.S Fly Fishing Retailers for the American Fly Fishing Trade

Association. Fernandina Beach: Southwick Associates.

5 Recreational Boating & Fishing Foundation: Outdoor Foundation. (2014). 2014 Special Report on Fishing.

Washington D.C: Sport Fish Restoration

Demographics

Gender: 70% are male

Age: 41.2% between the ages of 25-44

Income: 60.2% earn between $50,000- $100,000+

Education: 31.0% are college graduates

Ethnicity: 71.5% are Caucasian/White

Lifestyle/Psychographics

Prefer doing outdoor activities in groups

Tend to be laid back

Enjoy life as it comes

Care about personal appearance and style

Prefer to use the highest quality equipment

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b. Estimated Size of Target

To estimate the size of our target market (The Avid Fly Fisherman), we took the top 10.3%

of total U.S fly fishermen based on the number of days fished annually6. 10.3% of fly fishermen

fished between 12-23 times in 2012 and represents our target market7.

Size of Target = .103 x 3,838,00 = 395,314 (Avid Fly Fishermen)

B. Attractiveness of Target

We believe this target will be more inclined to purchase our product, because avid fly

fishermen are more willing to spend premium products to enhance their fly fishing skills and image

on the river. Because our product will come with a premium price, only fly fishermen who consider

themselves enthusiasts will be willing to make the investment in our product.

C. Additional Targets to Consider in the Future

The growing interest in fly fishing among women provides a possible target to consider in the

future. Providing stylish sunglasses for women could provide an attractive opportunity in the

future.

6 Recreational Boating & Fishing Foundation: Outdoor Foundation. (2014). 2014 Special Report on Fishing.

Washington D.C: Sport Fish Restoration



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4. Positioning Strategy

We will be using an “attribute/benefits” positioning strategy to differentiate our product in

the market. As described in the “Target Market” section, fly fishermen have a unique lifestyle and

the benefits our product offers match this lifestyle. Fly fishing has long been considered an elitist

sport, where wealthy men compete amongst their friends and enjoy the satisfaction of catching the

most fish or the biggest fish. Because many fly fishermen have high disposable incomes and

consider themselves elitist, fashion and style are important characteristics of this audience. Avid

fly fishermen want to have the highest-end and most innovative equipment on the market and are

willing to pay the premium price. They also enjoy looking fashionable while on the river. Our

product offers the fly fisherman with an innovative way to catch more fish and do it in style.

FlyZon will be known for bringing innovation and style to the river. To communicate our

positioning strategy, we will use the slogan:

“Technology That Fits”

5. Marketing Objectives

Given the overall size of our target market of 395,314, we predict that 3% of this population

will actually purchase one of the versions of our product. This conversion amounts to 11,859.42

people who will purchase one of our products.

Total Customers = .03 x 395,314 = 11,859.42

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Because 13.1% of fly fishing sales took place online in 2012 (Southwick), we are predicting

the same percentage of our sales will come from our website. 83.3% will come from specialty fly

shop retailers, and the remaining 3.6% will come from trade shows8.

Figure 2

Reference: Southwick Associates, Inc. (2012)



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Because we are targeting avid fly fishermen who carry high disposable incomes, we predict

that 65% of our customers will purchase the Z+ model, while the remaining 35% will purchase the

Z model. (A detailed description of specific sales objectives for individual models and accessories

are provided in the Profit and Loss section of the marketing plan.)

Total Customers = .03 x 395,314 = 11,859.42

Direct Web Sales = .131 x 11,859 = 1553.52

Direct Trade Show = .036 x 11,859 =426.92

Indirect Retailer = .833 x 11,859 =9878.54

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6. Marketing Mix Strategies

A. Product

Our product mix will include two different models as well as accessories which can be

purchased separately. Our first model is a basic (Z) version and is designed with less features for

a consumer who is looking to enter the FlyZon product line. Our second model is considered

premium (Z+) and comes with additional features. This model is designed for people who are

willing to spend more for additional features and want to fully customize their sunglasses. Both

models will come with a warranty, however the Z+ model will come with a lifetime warranty,

compared to the Z models 1 year warranty.

Table 3

Model Features

Z

Front facing HD Camera

64 GB of internal memory

Black or white (color)

GPS

Video editing software

“Match the Hatch” technology

1 year warranty

Z+

Front Facing HD Camera

128 GB

Fully customizable color

GPS

Video editing software

“Match the Hatch” technology

Detects fish movements

Voice recognition

Lifetime warranty

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a. Product Accessories

The accessories that will be included with the purchase of either of our models will be a

carrying case and a USB connector and charger. We will also include a specially designed lens

cleaner and microfiber cloth.

We will also be offering accessories that will be available for purchase. This will include

a strap that attaches to the glasses and will allow the user to hang the sunglasses around their neck.

A premium and customizable hard case will also be available for purchase.

b. Branding Strategies

Since our product is new to the industry and we have low brand equity, our focus will be

on increasing awareness for our products and the many benefits they offers. We will spend a

significant amount of effort giving consumers and influencers, such a fly fishing guides, hands on

experience with our product. This will help us directly communicate with the most important

people in the industry and increase WOM.

Our brand mark (which contains our name) is designed with elegance to communicate a

premium brand which is known for style. The premium version of our product will be known as

the “Z+” version, while the basic will be known at the “Z” version.

c. Stage of the Product Life Cycle

Since our product is new to the world, it is inevitably in the Introduction stage of the

Product Life Cycle. While we have no direct competition, we do face competition from indirect

competitors who sell standard polarized sunglasses. Because we are in the introduction state of the

PLC, it is important that we focus on increasing awareness for our products to help generate sales.

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We plan to do this by placing a heavy focus on advertising, as well as gaining publicity through

public relation efforts. Specific tactics for this are discussed in the marketing mix section of the

marketing plan.

B. Place9

The basis of our channel strategy will involve a direct distribution strategy in which we will

distribute directly through our website and directly at trade shows. Our indirect strategy will

involve “selective distribution” based on the most attractive geographic regions based on sales

trends. We will be distributing to a wholesaler to increase efficiencies and take advantage of their

knowledge of local markets.

Figure 3

9 The following content is based on Southwick Associates, Inc. (2012). Survey of U.S Fly Fishing Retailers for the

American Fly Fishing Trade Association. Fernandina Beach: Southwick Associates.

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a. Direct Distribution

Website: According to a study done by Southwick Associates, the second highest preferred

media by anglers is websites. This indicates that fishermen are turning the web as a source

of information and offers a viable channel to sell our product. Southwick also reports that

there has been a positive increase of 17.2 % in fly fishing retailers Internet sales, meaning

a significant portion of fisherman are turning to the web to purchase fly fishing products.

Tradeshows: Obtaining a booth and distributing our product directly through Expos will

act as an additional source of revenue, as well as a quality source of increase awareness

through publicity. We plan to reserve a booth at 3 of the major Fly Fishing Show’s

locations which include Denver (Colorado), Lynnwood (Washington), and Pleasanton

(California).

b. Indirect Distribution

The basis of our indirect distribution strategy will be based on “Selective Distribution” where

we will use a limited number of outlets according to the highest percentage of fly fishing retailer

sales geographically. The geographic area in which will we distribute our product is based the

percentage of sales that took place by fly fishing retailers in 2011. During the first year of

operations will distribute to the “West” region, as well as the “Rockies” region. According to

Southwick associates, the following pie chart depicts the highest percentage of fly fishing retailer

sales in 2011:

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Figure 4

Reference: Southwick Associates, Inc. (2012).

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To ensure the effectiveness of our distribution strategy we will be targeting a specific type of

retailer within the most attractive geographic distribution area. We will distribute our product to

“Fly Fishing Specialty Stores” who have single locations. This is because the majority of retailers

in each of the most attractive regions shown above are considered in this category.

Figure 5


c. Additional Channels to Consider in the Future (beyond First

Year)

Beyond the first year of sales, we will consider Independent Sporting Goods Stores (who carry

more than just fishing equipment) as a possible channel. This is because this 18% of fly fishing

sales comes from this type of retailer. Once our brand becomes more established in the market,

demand from retailers will increase and we stand a better chance at getting in larger retailers.

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C. Price

We have set the MSRP for our basic (Z) model at $799.99 and our premium (Z+) model at

$1199.99. The sale of each product through our direct channels (website and tradeshows) will

generate a profit of $649.99 and $1049.99. To increase efficiencies and take advantage of local

market knowledge, we will be selling our products to a wholesaler. Our markups will give us a

more than reasonable markup of over 100% for our Z model and a 40% markup for the Z+ leave

plenty of margin for the wholesaler and retailer to generate a profit as well. We have two

accessories that will be available for purchase through each channel described above. The Z Strap

will be sold at $19.99 and the customizable hard case will be sold at $34.99.

a. General Pricing Objectives, Strategies and Policies

Because we are selling a new product to the world, we have based our price and cost structure

off of a similar product, being Google Glass. Currently the price for Google Glass is $1,500 and it

costs $150 to manufacture. Because our product will have less features than Google Glass and it

will be designed specifically for Fly Fishing, we will charge less than Google Glass. According to

Fly Fisherman magazine, the average amount spent on fly fishing equipment in the past 12 months

was $1,050 per person10. This helps ensure our target will be willing to pay a premium for our

product. Because we are new company with few resources the Google, we predict our costs to be

slightly higher for each model. The cost for the Z model will be $150 and the cost for the Z+ model

will be $250.

10 Fly Fisherman Media Kit. (2013). Fly Fisherman Magazine, 2014. Retrieved December 5, 2015, from

http://www.imoutdoorsmedia.com/IM3/fishing/pdf/2014_ FlyFisherman_MediaKit.pdf

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D. Promotion

Our promotional mix strategy will include a variety of tactics using multiple types of media

and will reinforce our positioning strategy. Several tactics, which will be discussed in the following

sections, will also be designed to create a database in which direct marketing efforts can be made.

We have based our advertising and promotion strategies according to the preferred type of media

outlets used by our target market. The distribution of preferred media used by anglers is

represented in the chart below:

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Figure 6


a. Magazine11

Because magazines are the most preferred type of media, we will focus a significant

amount of our marketing efforts using this medium. Fly Fisherman magazine is the leading

publication dedicated to the interests of fly fishing enthusiasts and will represent our primary outlet

for advertising. This magazine currently has over 80,000 subscribers, whose lifestyle matches our



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target audience. Fly Fisherman describes its subscription base as a “wealthy, engaged, active, and

an influential target for premier products and services.”

Because Fly Fisherman is distributed on a national scale, our print ads will be designed to

drive people to our website and increase awareness of our product. Rather than driving sales in

specialty stores, our print ads will attempt to drive direct sales by getting our target audience to

visit our website and make a purchase.

Fly Fisherman currently has the following metrics:

Circulation: 75,246

Frequency: 5 times/ year

Total Audience: 362,622

Male/Female: 87/13

Median Age: 42.6

We plan to insert a full page ad and pay for 5 circulations during the first year. The cost for this

is provided in the table below:

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Figure 7

Reference: Fly Fisherman Media Kit. (2013).

Creative Example

As mentioned earlier, the overall design and copy of our printed media advertisements will

reinforce our positioning strategy. By emphasizing style and innovation, we are able to

communicate our unique selling point. The creative example shown below is designed to

communicate the primary benefit that our product offers and does it in an eye catching and stylish

way. The design is intended to increase awareness and interest in our product and drive people to

visit our website for more information.

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Figure 8

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b. Internet/Website

Because the Internet is the second highest preferred medium among anglers12, we will also spend

a significant amount of marketing efforts using this medium. Using the Internet will act as a way

to increase brand awareness and drive direct sales. We plan to use the following tactics using the

Internet:

Website: This will be used for direct purchasing. Our website will act a place where

customers can go to research and get information regarding our products. We will have

demonstration videos and testimonials to help educate consumers. The context of our

website will reinforce our positioning strategy and focus on innovation and style. We will

use PayPal as our preferred payment method.



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Figure 9

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Google Adwords: To help increase the number of people who visit our website we will use

Google Adwords. This will help increase SEO (Search Engine Optimization). By using

Google Keyword Planner, we have formulated a budget for ideal keywords.

Figure 10

Reference: AdWords, 2014

Social Media: Although social media represents a lower percentage of the preferred media

from anglers, this medium saw a 6% increase in preference between 2012 and 2013, and

offers an increasing opportunity to reach our target audience13.

I. Facebook: Because our product will rely heavily on WOM

recommendations, Facebook will be used as a tool to gain

positive reviews from our customers. Facebook also offers an

opportunity to increase SEO by engaging people through shares,

comments, and likes.



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II. Twitter: Twitter will be used to increase brand awareness.

Videos and photos are becoming easier to share on Twitter and

they offer an opportunity to increase user interactivity. Twitter

allows for customer feedback, which can be extremely valuable

in providing a better product and customer service.

III. Google+: Google+ will be used primarily as a tool to increase

SEO. Positive reviews for our product will act as a way to

increase the rank of search results.

IV. YouTube: YouTube will be used as a tool for product

demonstrations and testimonial videos from professional fly

fishing guides who have tested our product as well as customers.

Because our product is new to the world, it is important that

people know how to use it and the direct benefits associated with

using it.

Direct Database: To gain a better understanding of our customers and communicate with

them more effectively we plan to implement a direct database. We will do this by collecting

information during registrations on our website. Because it will take time to collect

customer information and build a database, we will develop strategies and tactics for our

second year of operations.

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c. Public Relations

We have also developed strategies and tactics to promote our brand through public relations. Our

primary form of public relations will rely on special events, sponsorships, and the use of social

media. Each of these tactics are described in the next section.

Film Tour: New technology has allowed for amateurs to capture and produce professional

like short films/ documentaries. The fly fishing industry has taken advantage of this and

the popularity in fly fishing films has increased. As of 2013, the official Fly Fishing Film

Tour had events in over 150 cities in the U.S. and Canada14. We plan to take advantage of

this trend by hosting a fly fishing film tour in which the users of our product can collect

their best video footage and make a short film. Because our brand is relatively unknown,

we will seek the sponsorship of New Belgium Brewing Co. and ask that the event is hosted

at their brewery. We believe our target market carries a similar lifestyle as that of New

Belgium’s and the event would benefit both parties. Because we are selling in the “West”

region as well, we plan to do a similar event at Sierra Nevada Brewing Co. as well. The

first place film will win a free pair of our Z+ model sunglasses as well as a broad range of

accessories. The second place film will receive a pair of our Z model sunglasses.

14 Block, E. (2013, April 13). Fly Fishing Show’s 2014 Dates. Retrieved December 5, 2014, from

http://midcurrent.com/2013/04/13/fly-fishing-shows-2014-dates-sites-set/

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Figure 11

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Demo Days: Product demonstrations are an extremely important aspect for producers of

fly fishing products and offer a great opportunity to educate consumers on the newest

innovations in the industry. Many companies in this industry offer “Demo Days” in which

their product or brand is promoted through specialty fly shops and demonstrations are given

by brand ambassadors and professional guides. We will offer a “Demo Day” in a variety

of fly shops in both the “Rockies” and “West” regions. We will send brand ambassadors

who will give product demonstrations and educate customers and professional guides who

work in the fly shops. T-Shirts, hats and bumper stickers will be provided to participants

for free to help increase brand awareness. We will also hold a raffle contest in which two

people will win a pair of our Z and Z+ model of sunglasses. To help build a direct database,

we will require people to provide their contact information such as name, email, and phone

number to enter the contest. Flyers and posters will be placed in specialty fly shops in the

U.S Rockies and U.S. West regions due to the majority of fly fishing sales taking place in

these regions. The following is an example of a flyer or poster that will be used:

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Figure 12

Trade Shows: Fly Fishing trade shows offer a great opportunity to promote our product

increase awareness. Expos are often known for a place where enthusiasts can gather and

check out the industries newest innovations. Because our product is new to the world and

innovative, a fly fishing expo offers a great opportunity to gain awareness. The 2013 Fly

Fishing Show saw growth for the shows in attendance and exhibitors by 10.1%

demonstrating the growth and increasing popularity in trade expos15. We plan to reserve a



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booth at 3 of the major Fly Fishing Show’s locations which include Denver (Colorado),

Lynnwood (Washington), and Pleasanton (California). Promotional gear such as t-shirts,

hats, and bumper stickers will be provided for free to gain awareness. Our product and

accessories will also be sold to gain additional revenue. Gaining positive press from Expos

will be important in increasing awareness and WOM from the most influential people in

the industry.

E. Summary of Marketing Mix

The overall strategy behind our marketing mix is designed to increase awareness for our

brand and become known as the premium provider of the best polarized sunglasses in the fly

fishing market. Our target market carries a unique lifestyle where using high-end products and

looking stylish while using them are core characteristics. Our brand will become known for

“Bringing Innovation and Style to The River”.

Our product line will consist of two models designed for the needs and wants of different

consumers as well as a variety of accessories to add personalization and style. Giving our target

audience the ability to upgrade and personalize their sunglasses will match their desire to fish

in style.

Our distribution strategy is focused on selective distribution in which we will target

“specialty fly shops” in the U.S. Rockies and U.S. West regions. These regions account for the

highest percentage of fly fishing sales and will help ensure the effectiveness of our distribution

strategy. More specifically, we will target specialty fly shops within these regions who have a

single location. This type of retailer accounts for nearly 51% of total industry sales. We will

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distribute our products directly through our website, as well as Fly fishing Expos, Both of

which have seen an increase in usage over the past years.

Because we are selling a new to the world product to a nice audience, we have based our

price points at a premium level. In addition, our target market carries relatively high disposable

income and are willing to spend a significant amount of money on premium fly fishing

products.

Our promotional mix strategy is designed to increase awareness for our brand and reinforce

our positioning strategy. Selected media outlets for advertising is based on the most preferred

media by our target audience. Magazine print ads will communicate our positioning strategy

as display stylish fly fisherman using our product.

7. One Year Time Schedule for Implementing Marketing Plan

A. Strategy

We have based the timing of our advertising/ promotion activities to ensure communication with

our target audience during each month of the following year. Because the fly fishing industry faces

seasonality, we plan to increase communication during specific periods of the year that generate

more sales. The months between July and September are considered prime fishing season and the

highest percentage of sales take place during this period. A significant amount of our marketing

tactics will take place during this time to take advantage of higher sales. The months between April

June also account for a significant amount of sales and we will also advertise/ promote heavily

during this time. The diagram below displays the months during the year which produce the most

revenue:

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Figure 13


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B. Table

Table 4

Month Magazines Film

Festivals

Demo

Days

Trade Shows Social Media

January

Denver Fly

Fishing Show:

9th, 10th, 11th

60 Facebook Updates

60 Tweets

1 YouTube Video

February

Lynnwood Fly

Fishing Show:

14th, 15th,

Pleasanton Fly

Fishing Show:

20th 21st, 22nd

60 Facebook Updates

60 Tweets

1 YouTube Video

March Full Page

Color Print Ad

60 Facebook Updates

60 Tweets

1 YouTube Video

April

New Belgium

Tour: 6th and

7th

Demo Day

(Rockies

Region)

North Platte

Fly Shop

Wyoming

60 Facebook Updates

60 Tweets

2 YouTube Video

May

Full Page

Color Print

Ad.

Demo Day

(Rockies

Region)

St. Peters

Fly Shop

Colorado

60 Facebook Updates

60 Tweets

2 YouTube Video

June

Demo Day

(West

Region)

Chico Fly

Shop

California

60 Facebook Updates

60 Tweets

2 YouTube Video

39

July

Full Page

Color Print

Ad.

Demo Day

(Rockies

Region)

Taylor

Creek Fly

Shop

Colorado

60 Facebook Updates

60 Tweets

2 YouTube Video

August

Sierra Nevada

Tour:

12th and 13th

Demo Day

(West

Region)

Gorge Fly

Shop

Oregon

60 Facebook Updates

60 Tweets

2 YouTube Video

September

Full Page

Color Print

Ad.

Demo Day

(West

Region)

Elko Fly

Shop

Nevada

60 Facebook Updates

60 Tweets

2 YouTube Video

October

Demo Day

(Rockies

Region)

Big Horn

Fly Shop

Wyoming

60 Facebook Updates

60 Tweets

2 YouTube Video

November Full Page

Color Ad.

60 Facebook Updates

60 Tweets

1 YouTube Video

December

60 Facebook Updates

60 Tweets

2 YouTube Video

40

8. Projected Profit and Loss Statement

Z+ Model (Premium)

Channel 1: Direct (Web) Channel 2: Direct (Tradeshow) Channel 3: Indirect (Wholesaler)

MSRP $ 1,199.99 $ 1,199.99 $ 1,199.99

Cost for Retailer / / $ 750.00

Cost for Wholesaler / / $ 600.00

Manufacturing Cost $ 250.00 $ 250.00 $ 250.00

Percent of Sales 13.10% 3.60% 83.30%

Revenue per Unit $ 1,199.99 $ 1,199.99 $ 600.00

Gross Profit per Unit $ 949.99 $ 949.99 $ 350.00

Units per Channel 1009.83 277.51 6,421.28

Z Model (Basic)


MSRP $ 799.99 $ 799.99 $ 799.99




Percent of Sales 13.10% 3.60% 83.30%

Revenue per Unit $ 799.99 $ 799.99 $360.00

Gross Profit per Unit $ 649.99 $ 649.99 $210.00


Revenue per Channel $ 434,998.09 $ 119,541.46 $ 1,244,741.00

COGS per Channel $ 81,563.16 $ 22,414.30 $ 518,642.09

Profit per Channel $ 353,434.93 $ 97,127.16 $ 726,098.92

Total Profit for Z Model $ 1,176,661.00

41

Revenue per Channel $ 1,211,785.44 $ 333,009.74 $ 3,852,769.78

COGS per Channel $ 252,457.40 $ 69,377.61 $ 1,605,320.74

Profit per Channel $ 959,328.03 $ 263,632.13 $ 2,247,449.04

Total Profit for Z+ Model $ 3,470,409.20

Z Strap


MSRP $ 19.99 $ 19.99 $ 19.99




Percent of Sales 13.10% 3.60% 83.30%

Revenue per Unit $ 19.99 $ 19.99 $ 9.60

Gross Profit per Unit $ 15.99 $15.99 $ 5.60


Revenue per Channel $ 23,292.11 $ 6,400.88 $ 71,128.06

COGS per Channel $ 4,660.75 $ 1,280.82 $ 29,636.69


Total Profit for Z Strap $ 65,242.79

Hard Case


MSRP $ 34.99 $ 34.99 $ 34.99




42

Percent of Sales 13.10% 3.60% 83.30%

Revenue per Unit $ 34.99 $ 34.99 $ 18.00

Gross Profit per Unit $ 24.99 $ 24.99 $ 8.00


Revenue per Channel $ 10,871.98 $ 2,987.72 $ 35,564.03

COGS per Channel $ 3,107.17 $ 853.88 $ 19,757.79


Total Profit for Hard Case $ 25,704.89

Marketing Expenses

Magazine ($1,515/issue * 5 issues) $ (7,575.00)

Google Ad Words (2077.20 clicks *$ 1.26/per click) $ (2,612.23)

Database (1 system) $ (5,000.00)

Film Festivals (2 festivals * $10,000/festival) $ (20,000.00)

Demo Days (7 demos * $10,000/demo) $ (70,000.00)

Tradeshows (3 Locations * $5000/location) $ 15,000.00)

Total Marketing Expenses $ (120,187.23)

Overhead Expenses

Website(Implementation) $ (3,000.00)

Management Salaries (4*100,000) $ (400,000.00)

Employees Salaries-Fulltime (6*50,000) $ (300,000.00)

Warehouse Supplies $ (10,000.00)

Warehouse Rent/Bills(12 months) $ (15,000.00)

Office Rent/Bills(12 months) $ (20,000.00)

Office Supplies $ (15,000.00)

Total Overhead Expenses $ (763,000.00)

43

Profit and Loss Statement

Revenue

Z Model $ 1,799,280.55

Z+ Model $ 5,397,564.95

Z Strap $ 100,821.05

Hard Case $ 49,423.73

Total Revenue $ 7,347,090.28

COGS

Basic $ (622,619.55)

Premium $ (1,927,155.75)

Strap $ (35,578.26)

Hard Case $ (23,718.84)

Total COGS $ (2,609,072.40)

Operating Expenses

Overhead $ (763,000.00)

Marketing $ (120,187.23)

Total Operating Expenses $ (883,187.23)

Total Profit $ 3,854,830.65

44

9. References/Source Information

Actively Diffrent: Fitness vs. Outdoor Messaging. (2008). Active Insight, 2(3). Retrieved

December 5, 2014, from http://www.brandchannel.com/images/papers/442_

hanson_dodge_final.pdf

Block, E. (2013, April 13). Fly Fishing Show’s 2014 Dates. Retrieved December 5, 2014, from

http://midcurrent.com/2013/04/13/fly-fishing-shows-2014-dates-sites-set/

Costs for a Customer Database. (2014, September 20). Retrieved December 5, 2014, from

http://www.marketingzone.com/costs-marketing/costs-customer-database

Fly Fisherman Media Kit. (2013). Fly Fisherman Magazine, 2014. Retrieved December 5, 2015,

from http://www.imoutdoorsmedia.com/IM3/fishing/pdf/2014_

FlyFisherman_MediaKit.pdf

Kaczanowska, A. (2013, August). IBIS World report: Hiking &Outdoor Equipment Stores in the

US. Retrieved October 21,2014, from IBISWorld database

Recreational Boating & Fishing Foundation: Outdoor Foundation. (2014). 2014 Special Report

on Fishing. Washington D.C: Sport Fish Restoration

Southwick Associates, Inc. (2012). Survey of U.S Fly Fishing Retailers for the American Fly

Fishing Trade Association. Fernandina Beach: Southwick Associates.

Special Report on Fishing and Boating. (2013). The Outdoor Foundation. Retrieved December 5,

2014, from http://takemefishing.org/uploadedFiles/Content/General/

About_RBFF/Research_ and_Evaluations/2013SpecialReportFinalWEB.2013-06-26.pdf

Transparency Market Research. (2014). Wearable Technology Market- Global Scenario,Trends,

Industry Analysis, Size, Share And Forecast 2012-2018. Albany NY: Transparency

Market Research

Senior Capstone Project (New Product Idea)

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