E HDVENTUR 承 ERGURSIONS January 2001 This sample marketing plan has been made available to users of Marketing Plan Pro m marketing planning software published by Palo Alto Software. Names, locations and numbers may have been changed and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information You are welcome to use this plan as a starting point to create your own but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here Requests for reprints, academic use, and other dissemination of this sample plan should be emailedtothemarketingdepartmentofPaloAltoSoftwareatmarketing@paloalto.com.For productinformationvisitourWebsitewww.paloalto.comorcall1-800-229-7526 Copyright Palo Alto Software, Inc. 1995-2002
January 2001 This sample marketing plan has been made available to users of Marketing Plan Pro™, marketing planning software published by Palo Alto Software. Names, locations and numbers may have been changed, and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. Copyright Palo Alto Software, Inc., 1995-2002
Confidentiality Agreement The undersigned reader acknowledges that the information provided by in this marketing plan is confidential; therefore, read disclose it without the express written permission of It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Upon request this document is to be immediately returned to Signature or printed Date This is a marketing plan. It does not imply an offering of securities
Confidentiality Agreement The undersigned reader acknowledges that the information provided by ________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _________________________. Upon request, this document is to be immediately returned to ________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities
Table of contents 1.0 Executive Summary .o Situation Analysi 2.1 Market Summary 2.1.1 Market Demographics 2.1.2 Market Need 2.1.3 Market Trends 2.1.4 Market Growth 2.2 SWOT Analysis 2.2.1 Strengths 2.2.2 Weaknesses 2.2.3 Opportunities 2.2 4 Threats 2.3 Competition 2. 4 Services 11223345555567888 2. 5 Keys to S 2.6 Critical issues 3.0 Marketing Strategy 3.2 Marketing Objectives 3.3 Financial objectives 3.4 Target Marketing 3.5 Positioning 3.6 Strategy Pyramids 10 3.7 Marketing Mix 3.8 Marketing Research 11 4.0 Financials, Budgets, and Forecasts 11 4.1 Break-even Analysis 11 4.2 Sales forecast 4.3 Expense Forecast 5.0 Controls 14 5.1 Implementation Milestones 5.2 Marketing Organization 5.3 Contingency Planning 15
Table Of Contents 1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . 2 2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.4 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . 11 4.0 Financials, Budgets, and Forecasts . . . . . . . . . . . . . . . . . . . . . . 11 4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 11 4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5.1 Implementation Milestones . . . . . . . . . . . . . . . . . . . . . . 14 5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 15 5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 15
Adventure Excursions unlimited 1.0 Executive Summary Adventure Excursions Unlimited(AEU) was formed January 2001 to provide hard adventure sport/travel packages with upscale accommodations, gourmet food, and celebrity service providers to wealthy clients. AEU Hard adventures include Helicopter -skiing, kayaking white ater rafting and mountain biking The founders of AeU are Jordan Stephan MBa/JD, Jillyn Certo, MBA, and Loren Harlo, MBA. In addition to their MBa status, they are passionate about the activities aeu will offer An opportunity exists for two reasons: 1. Tourism is a growing industry (4% annually and within the industry, adventure travel is rowing at 10% 2. There are few providers of hard adventure travel to upscale clients Virtually all companies that provide hard"adventure activities appeal to a lower income client. es that appeal to a wealthier clientele generally it adventure package. Hard adventure activities involve difficult physical requirements. They carry a higher level of risk than do soft"activities. Soft adventure activities may involve physical exertion, however they involve a low level of risk and can be engaged in by non-athletic people. The company's target customers are high income(min. $75,000 for single person), health- conscious individuals interested in popular hard adventure sports. These are lawyers, bankers, executives, doctors, etc. The major purchasers are located in urban areas within major United States cities. Our customers are more likely to be married 51%are men and 49% are women There is rapid growth in the market and increasing demand In addition, more niche markets are evolving. Initially, it will be difficult to compete with experienced providers, especially the market leaders. However, AEU's target market is an exploitable niche and our service is differentiated AEU's target market members will have similar activity interests, more disposable income and less sensitivity to price We will provide a luxury service with prestige value. Our prices will be out of reach for the majority of adventure travelers. Service will be priced based upon luxury competitor prices and the value added of our offering Providers that offer offering luxury services similar to ours do so at prices similar to ours. We are competitively priced in the luxury market. Because we appeal to luxury and thus a smaller market, volume will be limited However we will be able to capture a higher gross profit margin 2.0 Situation Analysis Adventure Excursions Unlimited(aeu) has been operating for several months now. The trips have been well received and marketing is now critical to its continued success and future profita bility. AEU offers high-end hard adventure trips. The basic market need is hard adventure trips for the wealthy client. This target market appreciates upscale accommodations, gourmet ood, and personalized attention aeU will meet this market need with a variety of trip offerings Page 1
1.0 Executive Summary Adventure Excursions Unlimited (AEU) was formed January 2001 to provide hard adventure sport/travel packages with upscale accommodations, gourmet food, and celebrity service providers to wealthy clients. AEU Hard adventures include Helicopter-skiing, kayaking, white water rafting, and mountain biking. The founders of AEU are Jordan Stephan, MBA/JD, Jillyn Certo, MBA, and Loren Harlo, MBA. In addition to their MBA status, they are passionate about the activities AEU will offer. An opportunity exists for two reasons: 1. Tourism is a growing industry (4% annually) and within the industry, adventure travel is growing at 10%. 2. There are few providers of hard adventure travel to upscale clients. Virtually all companies that provide “hard” adventure activities appeal to a lower income client. Companies that appeal to a wealthier clientele generally provide “soft” adventure package. Hard adventure activities involve difficult physical requirements. They carry a higher level of risk than do “soft” activities. Soft adventure activities may involve physical exertion, however they involve a low level of risk and can be engaged in by non-athletic people. The company's target customers are high income (min. $75,000 for single person), healthconscious individuals interested in popular hard adventure sports. These are lawyers, bankers, executives, doctors, etc. The major purchasers are located in urban areas within major United States cities. Our customers are more likely to be married. 51% are men and 49% are women. There is rapid growth in the market and increasing demand. In addition, more niche markets are evolving. Initially, it will be difficult to compete with experienced providers, especially the market leaders. However, AEU’s target market is an exploitable niche and our service is differentiated. AEU's target market members will have similar activity interests, more disposable income and less sensitivity to price. We will provide a luxury service with prestige value. Our prices will be out of reach for the majority of adventure travelers. Service will be priced based upon luxury competitor prices and the value added of our offering. Providers that offer offering luxury services similar to ours do so at prices similar to ours. We are competitively priced in the luxury market. Because we appeal to luxury and thus a smaller market, volume will be limited. However, we will be able to capture a higher gross profit margin. 2.0 Situation Analysis Adventure Excursions Unlimited (AEU) has been operating for several months now. The trips have been well received, and marketing is now critical to its continued success and future profitability. AEU offers high-end hard adventure trips. The basic market need is hard adventure trips for the wealthy client. This target market appreciates upscale accommodations, gourmet food, and personalized attention. AEU will meet this market need with a variety of trip offerings. Adventure Excursions Unlimited Page 1
Adventure Excursions unlimited 2.1 Market Summary AEU possess good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. AEU will leverage this information to better understand who is served their specific needs and how aeu can better connect with them Target Markets High-income health-conscious individuals Young active trustafarians Table 2.1: Target Market Forecast Target Market Forecast conscious individuals 525,000551,250578,813 trustafarians Other 01931801000128 10.19% 2.1.1 Market demographics The profile for the aeu customer consists of the following geographic, demographic, and behavior ors Geographics AEU's customers are most likely to come from the following states: California, Florida New York, Texas, Illinois, Nevada, Hawaii, Pennsylvania, and georgia Located in urban areas of major cities Demographics Slight majority male. An increasing number of hard adventure travelers are women(some statistics suggest that women comprise 49% of the hard adventure market). Men on average however, spend more than women on their adventure travels Page 2
2.1 Market Summary AEU possess good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. AEU will leverage this information to better understand who is served, their specific needs, and how AEU can better connect with them. High-income health-conscious individuals Young, active "trustafarians" Other Target Markets Table 2.1: Target Market Forecast Target Market Forecast Potential Customers Growth 2001 2002 2003 2004 2005 CAGR High-income healthconscious individuals 12% 1,300,000 1,456,000 1,630,720 1,826,406 2,045,575 12.00% Young, active "trustafarians" 5% 500,000 525,000 551,250 578,813 607,754 5.00% Other 0% 00000 0.00% Total 10.19% 1,800,000 1,981,000 2,181,970 2,405,219 2,653,329 10.19% 2.1.1 Market Demographics The profile for the AEU customer consists of the following geographic, demographic, and behavior factors: Geographics • AEU's customers are most likely to come from the following states: California, Florida, New York, Texas, Illinois, Nevada, Hawaii, Pennsylvania, and Georgia. • Located in urban areas of major cities. Demographics • Slight majority male. An increasing number of hard adventure travelers are women (some statistics suggest that women comprise 49% of the hard adventure market). Men on average however, spend more than women on their adventure travels. Adventure Excursions Unlimited Page 2