Outward Bound Adventures,

dba OBA Inc.*Nature-Based Experiences and Self Mastery Skills for

Underserved Youth

By Wendell E. Hall

Natural Knowledge, LLC

January 2010

* OBA is a 501(c)(3) private non-profit charitable organization

The “New OBA” Strategic Plan

WHO?

“We” Are One…Just One

“Natural Knowledge” is my consulting company

I am a Marketing professional with over 28 years of marketing experience with major package goods companies such as ConAgra Foods, Quaker Oats and DowBrands

I recently crafted a marketing position for a new Non-profit in Dallas, Heart of a Warrior Foundation

I practice a brand of marketing called

“Mother Nature Marketing”

– Follow/Friend me at: http://twitter.com/MotherNaturMktg

http://www.linkedin.com/in/MotherNatureMarketing

http://www.facebook.com/MotherNatureMarketing

My Blog at Mather Nature Marketing http://wendellhall.wordpress.com

Professional Bio

CONAGRA FOODS 1995 to 2007 Senior Marketing Manager (Director Organizationally) -- Delivered top-line

growth for 10 of 12 years for ConAgra Foods $120M membership warehouse club channel.

 

THE QUAKER OATS COMPANY 1990 to 1995 Product Manager -- Leveraged Quaker brand equities to provide a family of

consumer-recognized wholesome snacks

DOWBRANDS INC., A DOW CHEMICAL CO. SBU 1980 to 1990 Brand Manager -- Was the key strategic leader for the Ziploc Storage Bag

brand. DowBrands Inc.’s flagship $80M brand

  

EDUCATION Continuing Education -- Executive Program in Brand Strategy,

Northwestern University, Kellogg Graduate School of Management

Bachelor of Science in Business (Marketing Concentration), Indiana University, Kelley School of Business

Community Service Bio

Board Member, Heart of a Warrior Charitable Foundation (2007 – Present)

Executive Director/CMO, Heart of a Warrior Foundation (2007 – 2009)

Safety Committee Member, Outward Bound (2006-2009)

Course Leader, Outward Bound Adventures (1997-Present)

Board of Directors, Outward Bound Adventures (1997-2008)

Instructor and Mgmt. Committee Member, Sierra Club-Angeles Chapter Wilderness Training Course (1999-2006)

CPR/First Aid Certification Coordinator, Sierra Club-Angeles Chapter (2001-2005)

Volunteer Leader and Indy Board “Committee” Member, Young Life Inc., (Cumulative 18 years of service in 4 Cities) - Indianapolis, IN / Dallas, TX / Chicago, IL / Pasadena, CA

For More Info See www.WendellHall.vpweb.com

Also Check Out My Blog at http://wendellhall.wordpress.com/

OBA Situation Assessment OBA is virtually a 50 year old local LA

institution providing outdoor education and experiences to local underserved youth

In 2006 OBA agreed to merged with OB

As part of the merger agreement an “unwind” provision was created in the event that the 2 cultures were not compatible

In November 2009 OB exercised the unwind provision

As of December 31, 2009 we are on our own

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”  -- Winston Churchill

The OB Unwind = Opportunity

Our separation from OB creates uncertainty and stress, but opportunity to:

– Strengthen the OBA brand– Correct frustrations from the past– Incorporate best practices from OB– Serve our audience our way, unencumbered– Emerge better and stronger than ever

Time Critical Needs

Relaunch the OBA BrandDefine the OBA position

Refine the brand message

Begin the Marketing CampaignNEED TO DO ASAP!!!

Secure Operational Funding

Notify Grant Givers

Revise Contracts with Clients

Appeal for Donations

In Process

Replace Operational Tools

Phone Systems

Email

Website

Already Done

A History of Successful Re-branding

Rebuilding the Brand is Job #1 Kentucky Fried Chicken KFC

Pittsburg Plate Glass PPG

Southwestern Bell SBC

Gatorade - currently in “transform” process G

Who Should We Become…

Outward Bound Adventures (dba,OBA)

Becomes……

Simply branded as…

OBA “Now New and Improved”

Rationale For RebrandingNegatives of “OBA” Brand

Some in LA/Pas. remember what OBA stands for

“Outward Bound” has high name awareness and broad recognition

Positives of “OBA” Brand OBA already has local and

outdoor brand awareness

New audience, no ties to the original name

Eliminates confusion between us and OB

Reduces the need to explain the separation from OB

“dba, OBA” is cumbersome

OBA is crisp and memorable

Clear, single communication message

Simplifies branding efforts

How to Answer OBA Questions…

Q- What does “OBA” stand for?

A- We were founded as Outward Bound Adventures 50 years ago

Q- Are you a part of Outward Bound?

A- NO

Q- Were you formerly part of Outward Bound?

A- Yes, but not currently

Q- Does “OBA” stand for anything now?

A- Yes, we are still “Outward Bound Adventures”

Immediate Rebranding Communication Steps

(First 60 Days)

Personal/Phone Contact

•All current clients

•Major Supporters

•Hot prospects

•Former staff and board members

Mailing Campaigns

•News E-Blast

•Electronic Newsletter

•Mail Special Edition Newsletter

Update All Normal Branding Vehicles

•Signage

•Letterhead

•Update Phone system Message

•800 number System

•New Website!!!

Update All Written Communications

•Donor Letters/Cards

•Add N&I Tagline in your Email Signature

•Revise and Update the Logo

Example of Effective E-Blast Strategy

Example of a Good Website

Example of Contemporized Logos

?

Strategic Messaging

For the

“New OBA”

“New OBA” Vision

Vision:OBA will be known for service to diverse

underserved youth and their development into responsible, participative and productive leaders and citizens of the world.

OBA will teach youth to care for natural environments and social communities in-need around the world, because we are all part of humankind in an interrelated, bio-diverse global community.

Old OBA Mission

Purpose -- dedicated to providing challenging outdoor environmental experiences to urban youth.

Community – provide multi-ethnic, low-income students in Los Angeles area inner cities with year-round programs of challenging outdoor environmental learning activities.

Education -- using mountain, dessert, coastal tide pools and other locals as tools to educate youth about the natural environment and outdoor careers

Self-esteem -- challenge youth to learn more about themselves through adventure experiences.

Not to be read now.

For reference only.

“New OBA” Mission

Mission:OBA is the community service organization that serves

underserved urban youth in Southern California and other select cities, and their families, by promoting self empowerment, dignity, accountability, community commitment and environmental stewardship.

By seeking to establish deep relationships with participants, OBA strives to advance cultural, class and ethnic diversity and ensure equal access and opportunity for all to enjoy wilderness environments.

Furthermore , OBA will upgrade student academic, social and self mastery skills that are applicable in all aspects of life, including: school, professional, outdoors, as well as in their home communities.

“New OBA” Purpose

Purpose:To serve underserved urban youth and their

families, to promote self empowerment, to inspire personal accountability, to teach a greater appreciation of the wilderness, self, family and community through meaningful contact with and exposure to nature.

“New OBA” Positioning

Brand Statement: For underserved urban youth OBA is the fun,

adventurous way to develop into productive peer community leaders and responsible citizens of the world.

Brand Promise:Through use of outdoor environments, OBA will

create experiences and build relationships that will positively impact participant’s lives.

OBA’s Old 5 Areas of Focus Eco-literacy/Environmental education

Teambuilding skills

Outdoor careers and practical experience

Challenging hikes/activities

“Leave-no-Trace” wilderness principles

Promotes group involvement, personal challenge and inspires youth to find positive, peaceful solutions to problems.

Teach basic resource management, conservation and ecological concepts.

Promote teambuilding and leadership skills. To help youth discover themselves and understand their role

as responsible members of their community.

Old Objectives

Not to be read now.

For reference only.

OBA’s “New” Five Programmatic Keystones

Created By OBA Staff

Eco-Literacy

Social Action– Public Speaking– Community Organizing– Collaborative Decision

Making– Community Service: Urban

and Wilderness

Self Mastery– Goal Setting– Values Clarification– Prejudice Reduction– ICTSOLO– Meditation– Physical Challenge

Community/Family– Family Communication Skills– Group Functioning– Family Goal Setting– Family Bonding– Cultural Celebrations

Employment and Life Skills– Job Readiness Preparation– College Prep– Outdoor Career Exposure– Fund Raising– Add: Volunteerism

Differences – Old vs. New Drops any reference to “Low Income”, which is a

negative

Expands geographic focus from LA to SoCal and other select cities

Stated inclusion of “families”

Broadens “education” to mean total academic proficiency, not just eco-literacy

Specifically spells out an old tenet of OBA that was mere implied before – to “build deep relationships”

Greater emphasis on bringing learned skills back to their home community

OBA S.W.O.T. Analysis

OPPORTUNITES Social and Science based programs Community, Local Govt.

relationships already in place Plan to Relaunch OBA Plan for New Revenue Streams

THREATS OB Expected to Enter So Cal Crowded Social Service field vying

for reduced dollars No ED succession plan in

place

STRENGTHS 50 Years of Success/History Charismatic Leader Strong Community, Local Govt.

relationships and So Cal Outdoor Connections

Eco-Scientist Leadership Large Alumni Following Strong, Proven Programming Proven Fee-for-Service Model Proven Staff

WEAKNESSES Weak Financial Footing / Cash Weak Economy for Development No Board Members with Direct

Company Financial and/or Media Resources

ED wears too many hats and spread too thin

We Are Clearly a Contract Driven Org.

1%

91%

8%

OBA Average Revenue Sources 2009

Board Give & Get Contribu-tions

Contracts

Fundraised

Mitigation of Weakness/Threat

As noted in the SWOT we depend on the ED for most of the elements

ED is spread too thinly

A Two Part Solution….

Business Unit Director (BUD)

Part 1: To free the ED to maximize program funding and development, I recommend a “Bus. Unit Director” (BUD) CMO - Brand Building for the “New OBA” Oversee Day-to-Day Ops

Build New Bus. and Fee-for-Service Revenue Streams

(This is NOT philanthropy development)

Face to the Client Manage all Financials Special Reports per Board Requests

30%

15% 30%

10% 10% 5%

Development Manager (Part-time)

Part 2: To free up the ED to maximize his efforts, I recommend we replace the “Development Mgr.” position

Corporate & Major Donor Philanthropy

Donation Campaigns

Grant Writing

Annual Fund Raising Events

Proposed OBA Org. Flow

Board

BUD/

OPS

Financial/Bus. Management

Program Management

ED

Development/

Funding

Development

of

Programs

?TB

Discussed Later

Revenue Sources Corporate & Major Donor Philanthropy

– Disadvantage – Extremely weak economy

Fee-for-Services (Client Agencies)– Effective source of revenue but diminishing returns

Donation Campaigns– OBA friends are loyal but not significant givers

Grant Writing– Major grant giver portfolios are extremely depressed

Annual Fund Raising Events– Unproven and risky

Plus -- A New Revenue Stream

A New Financial Paradigm

“Those who do not remember the past are doomed to repeat it.”

George Santayana

A New Revenue Stream Sister Company – “NewCo” Enterprises

Summary The Unwind created new opportunities Relaunching the OBA brand is key to success A simple, clear brand will minimize confusion Need to immediately communicate the “New & Improved” OBA

brand message to our stakeholders Synergy across all communication vehicles is a must to

maximize the brand impact ED needs to be able to “focus” on key relationships for

development and financial sustainability A BUD is a solution for making the ED more effective A New revenue stream outside of traditional philanthropy and

grants is needed Other 501(c)(3)s have successfully employed a sister company

who’s purpose is generating income for the service agency

Recommendations

Immediately close gaps left by the unwind Board development that adds members that

can activate financial resources

Activate the BUD Strategy to oversee critical operating and marketing needs

Employ a part-time development mgr.

Activate the “Sister Co.” concept ASAP

QUESTIONS?

DISCUSSION?

Take 10:

Intermission

A NEW PRESENTATION

Clear your mind of the prior presentation. Think “NEW”.

WELCOME BACK TO…

OBA Gets a “Buddy”… Now it Needs a “Sibling”

Introducing…

The “NewCo” Concept

THE BUSINESS CASE

The “NewCo” Concept “NewCo” is merely a placeholder for the company name

that will be chosen

One of NewCo’s main purposes is to generate revenue that will help to financially support OBA

The purpose/mission will be clearly stated in all marketing communications for transparency and altruistic appeal

NewCo may be a for-profit or a non-profit company, depending on the analysis of tax favorability vs. profit upside

NewCo board will be the Newco CEO, the OBA ED and an OBA interlocking directorate (a small subset of OBA directors, probably 3 to 5)

The “NewCo” Concept Continued

NewCo will target adults, age 18 to 60, that have a love for active outdoor experiences, with financial means

NewCo will offer vacation Excursions

Excursions will be multi-day trips to compelling outdoor locations

Locales will be in attractive eco-vacation destinations or challenging outdoor experiences

Excursions will be non-technical

Excursion will rely on a supply chain of professional outfitters or guides as contractors

Types of Excursions

Excursions Can Be:

Thru-hiking on the PCT

(The Main Attraction; See Appendix)

Hut-to-hut hiking Backpacking in National Parks Mule packs Paddling trips International trekking Rain Forest Eco-tours Photo Safaris Sailing cruises WFA/WAFA training courses

Excursions Will Not

Not be technical Not include extreme conditions Not have >3rd class exposure

Example #1 - BCM & SFS

Example #2 - BAWT & CFC

STRATEGIC MESSAGING

The “NewCo” Vision

NewCo will be widely known as the outdoor excursion and eco-tourism outings provider that offers a variety of the most fulfilling outdoor experiences that delight adult vacationers.

The “NewCo” Purpose & Mission

Mission: NewCo will provide unique outdoor vacation

experiences for its clients while generating revenue that supports OBA’s “unrestricted” financial needs for operations, overhead and programming.

Purpose: 1. If For-profit: To provide a reasonable return to

investors/owners2. To provide incremental funding to support OBA

operations in serving underserved youth and their families.

The “NewCo” Brand Position

Brand Statement: For adventure vacationers NewCo will add

unparalleled comfort and convenience to the outdoor experience without robbing them of their outdoor adventure.

Brand Promise: We will be the outdoor concierge for adventure

vacationers.

THE EXECUTIONAL PLAN

•Start-up Process•Tactics

•Financials

The 4Ps of Marketing

Packaging

Our packaging will be the “hands-on value added attention” given to each client, for each excursion

We will be the Outdoor Concierge

Promotions We will offer loyalty discounts or

promotional offers on multiple excursion bookings

Product Unique Types of Excursions: Thru-

hiking, Trekking, Mule packs, Sailing, Paddling, Training trips, Eco-vacations, etc.

Price We will price excursions on a cost-

plus markup basis

Prices will be within 15% of market pricing for similar programs

Value proposition will include the “altruistic” benefit of helping kids

Possible NewCo Names• Adventure Excursions, Because Kids Matter

• Trekking Toward New Horizons

• Walkabout for Kids

• Bright Sunrises Excursions

Option: We could operate under the Natural Knowledge, LLC banner initially

New ideas for names WELCOMED!

Business Startup Processes1) Select Name

2) Incorporate

3) Logo Design

4) Phone System

5) Website/Email/Domain

6) Printing (business cards, letterhead/envelopes, signage, etc.)

7) Bank Account(s)

8) Board Development (Interlocking)

9) Secure Startup Financing

10) Augment Business Plan

11) Finalize Marketing/Media Plan

12) Develop a rolling 2 year Excursion Program schedule

13) Vet the supply chain and test programs

14) Contract Supplier services and deliverables

15) Execute Media Strategy

16) D&O and Liability Insurance

Program Goals Conduct 12 Excursions in the first 12 months working up to

18 per year by year 2 …or 36 by year 5

Define and vet the supply chain to support each type of excursion in year 1

Have 2 suppliers for each excursion type by year 3

Generate $33k for OBA in year 1… growing to $135k by year 3… $200k per year by year 5

Establish at least 3 promotion partners that supplies appealing products and/or services by year 1

Establish a relationship with at least 1 “trusted” travel agency partner to recommend to our clients for their travel plans before operations begin

Year 1 P&L - Lo/Med/Hi12 Mo. Forecast

  Lo (2 per 4 Mo.)

  Realistic(3 per Qtr.)

  Hi(3 per 2 Mos.)

Gross $ 195,000   390,000   585,000

Discounts 0   0   0

Net $ 195,000   390,000   585,000

COGS 140,400   234,000   280,800

Gear Promo. 19,500   39,000   58,500

A&P 25,200   25,200   25,200

Profit Cont. 9,900   91,800   220,500

Overhead. 27,000   27,000   27,000

Salary(20% of PC)

-   18,360   44,100

PBT (17,100)  46,440   149,400

Inc. Tax .28% -   13,003   41,832

To OBA 0   33,437   107,568

Based on trips at avg. $2,500 per

Est. no “Multiple Trip Discounts” yr. 1

Based on trips at $1,000 GP Margin

Based on avg. $1500 Cost

$500 retail value, at 50% wholesale cost

Seed money needed for CPC advertising

Based on trips at $1,000 GP Margin.

Add’l. investment (See Budget Details in the Appendix)

Target 20% of PC for Salaries.

.

Estimate of 28% Tax rate after deductions .

100% of PBT to OBA up to $200,000, then a percentage over the target.

Year 3 and 5 P&L Forecast  Year 3 Goal

(4 per 2 Mo.)Year 5 Goal

(4 per 1.3 Mo.)

Gross $ 780,000 1,170,000

Discounts 31,200 77,922

Net $ 748,800 1,092,078

COGS 374,400 561,600

Gear Promo. 78,000 117,000

A&P 25,200 25,200

Profit Cont. 271,200 388,278

Overhead 28,350 29,700

Salary(20% of PC)

54,240 77,656

PBT 188,610 280,922

Inc. Tax .28% 52,811 78,658

To OBA 135,799 202,264

.

Assumes 20% disc. on 1/5 & 1/3 of the yr 3 & 5 revenue, respectively

Based on cost reduction from yr 1 to $1200 per person

Minimum seed money needed (CPC)

Increased GP Margin to $1,300 per trip

See Budget Details in the Appendix.

Target 20% of PC for Salaries.

.

Funds that could go to OBA if Non-Profit

100% of PBT to OBA up to $200,000, then a percentage over the target.

Next Steps

OBA Board to approve the 2010 budget including the BUD & Devel. Mgr. positions

OBA Board to approve an official affiliation with NewCo using OBA’s mission as a driving purpose of NewCo

Agree on tax status

OBA ED to determine financial investment into NewCo and gain Board approval.

Final Thought

"The point of…being an optimist, is to be foolish enough to believe the best is yet to come."

                                                                                                   -- Peter Ustinov

APPENDIX

.

Year 1 BudgetBUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

Mo 1 Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Mo 7 Mo 8 Mo 9 Mo 10 Mo 11 Mo 12 Total. Yr. 1 Comments

Revenue

Through-Hiking 97,500 97,500 97,500 97,500 390,000 3 groups of 13 per group in 4 Cells

Costs

Audit 1,500 1,500 Audit of books for Donor request purposes

Bookkeeping/Accounting/Tax Prep. 150 150 150 650 150 150 150 150 150 150 150 150 2,300 Monthly Bookeeper and Ann. Tax prep.Insurance 2,200 2,200 D&O and $1M Liab. Insurance

Bank Fees and Credit Card Processing 325 25 25 325 25 25 325 25 25 325 25 25 1,500 Credit card Fees activated by processing for trips

Debt. Service - Administrative - Misc 50 50 50 50 50 50 50 50 50 50 50 50 600 Petty Cash

postage-administration 20 20 20 20 20 20 20 20 20 20 20 20 240 Includes $15 per month for misc. Fed-x Salaries-Administrative (SG&A) 4,590 0 0 4,590 0 0 4,590 0 0 4,590 0 0 18,360 Salary is estimated at 20% of Net Sales

Other Compensation - Office Supplies 25 25 25 25 25 25 25 25 25 25 25 25 300 Misc.

Misc. Taxes - Unemployment Tax - Office phone & DSL 125 125 125 125 125 125 125 125 125 125 125 125 1,500 Cell Phone Monthly Svs. 120 120 120 120 120 120 120 120 120 120 120 120 1,440 Travel/Subsistence/Ent. 2,500 2,500 2,500 2,500 10,000 Travel to kickoff and greet returning Excursion

Staff Development / Training 300 300 Board Meeting Expense 30 30 30 30 120 Printing and snacks for Quarterly meetings

Board Development - Computer Network 70 70 70 70 70 70 70 70 70 70 70 70 840 Verizon Broadband monthly fee

Equipment/Software 100 100 100 100 400 Scanner, Camara, Router, Software, etc

Equipment - Maintenance 50 50 50 50 200 Occasional Geek Squad Expense

Unemployment Tax - Office Rent 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Photography 50 50 50 50 200 Excursion Photo processing/Printing

Web Hosting 30 30 30 30 30 30 30 30 30 30 30 30 360 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total Cost of Overhead (SG&A) 8,405 3,415 895 8,905 915 895 8,405 915 895 8,405 915 2,395 45,360 Overhead Less Salary 3,815 3,415 895 4,315 915 895 3,815 915 895 3,815 915 2,395 27,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Gear Promotion Expense 9,750 9,750 9,750 9,750 39,000 Offer $500 retail value purchased at 50% Wholesale cost per customerDiscounts 0 0 0 0 0 0 0 0 0 0 0 0 - None predicted in year 1Marketing 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Advertising 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total Cost of Adv. & Promo. 11,850 2,100 2,100 11,850 2,100 2,100 11,850 2,100 2,100 11,850 2,100 2,100 64,200

Supplier Contracts 58,500 58,500 58,500 58,500 234,000 Income Taxes 13,003 13,003 No Income in Year 1 to pay tax on

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total Cost of Services 58,500 - - 58,500 - - 58,500 - - 58,500 - 13,003 247,003

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Profit / (Shortfall) 18,745 (5,515) (2,995) 18,245 (3,015) (2,995) 18,745 (3,015) (2,995) 18,745 (3,015) (17,498) 33,437

PCT Thru-Hiker Facts The Pacific Crest Trail (PCT) goes from Mexico to Canada through

California, Oregon and Washington As the crow flies the distance between Mexico and Canada is over

2,500 miles The PCT crosses the world-famous San Andreas Fault three times. It pass through six out of seven of North America's eco-zones including

high and low desert, old-growth forests, rain forests and arctic-alpine The PCT passes the three deepest lakes in the nation; Lake Tahoe

(1,645 feet), Crater Lake (1,932 feet) and Lake Chelan (1,149 feet) within driving distance of San Diego, Los Angeles, San Francisco,

Sacramento, Portland, and Seattle, Offers the best of the West:

The Mojave Desert the Sierra Nevada and Mt. Whitney Yosemite National Park Marble Mountain and the Russian Wilderness in Northern California, The volcanoes of the Cascades including Mt. Shasta and Mt. Hood, Crater Lake,

Columbia River Gorge, Mt. Rainier, and the remote Northern Cascades.