AWIA business plan (Scott See)

AWIA business plan (Scott See)

Post by Bill O'Su » Wed, 01 Sep 1993 01:14:50

This was posted by Scott See 71760,3530 on the Compuserve.  He's looking
for comments on his proposed business plan

Attention all writers,

In the windsurfing library, there's a file called AWIABP.txt.  This is the
beginning of a Business Plan for the windsurfing industry.  PLEASE FEEL
FREE TO DOWNLOAD IT AND TAKE YOUR EDITORIAL PEN/KEYBOARD TO IT!  I could
use all the help I can get.  Don't hesitate to send hard copies to non-bbs
people for their input.  I would love to get ideas from all the major
players in the industry.

Right now the entire Board of Directors is working on this plan.  It will
be presented at the Trade Show in San Francisco in October.  That gives me
one month to get this business plan for the entire industry ready.  Quite a
daunting task when you think about how much there is to be done, and how
little resources there are.  We will have to leverage small efforts into
huge payoffs.

Thanks for your help,

                        Scott See
                        Executive Director
                        AWIA

I.Executive Summary

This business plan is actually a plan within a plan.  Not only
does it outline the future of the AWIA but also for the entire
industry of windsurfing itself.  The growth of the AWIA is
inevitably dependent on the growth of the windsurfing industry.

II.Windsurfing Growth Project

A.Background and Purpose
1.History
a.This section needs to include an analysis of the early growth
of the sport and why the industry was successful then.  What
qualities did the industry have back then that don't exist now?  
2.Current Conditions
a.Entry level
(1)The windsurfing industry has not focused sufficiently on
luring new *** into the sport.  Manufacturers, retailers, and
publications all have focused on creating an artificial
obsolescence to pressure current windsurfers into upgrading and
adding to their inventory of high performance equipment.  While
the serious windsurfer will continue to be a very important
target market, the industry can not ignore the entry level
market.  
b.Customer retention
(1)Once a person has decided to give windsurfing a try, there
still remains a long road to follow before he becomes an
enthusiast.  At every juncture, there are opportunities for him
to give up and turn back.  For example, he may receive poor
instruction and give up, he may learn and then be sold a board
inappropriate for his local conditions and personal style, or he
may try windsurfing for a while and become disillusioned by the
constant need to have the latest equipment or not be "cool."  In
short, there are too many opportunities for the industry to lose
a customer.
c.Industry viability
(1)It is not a good sign that windsurfing shops a closing down.
It is just as bad that many are closing their schools.  This has
left sections of the country under-represented and provides a
further obstacle for the potential consumer.
3.The Concept
a.The AWIA needs to present a unified front to change
windsurfing's image.  "Windsurfing is easy to learn and fun for
all types of people."  As opposed to, "Windsurfing is a
challenging sport only for serious, competitive athletes."  This
image must come from every level schools, dealers, manufacturers,
and publications.  If the AWIA can acheive this, with the help of
the industry of course, three things will happen:
(1)We will draw more people into the sport.
(2)We will retain more loyal customers in the long term.
(3)Windsurfing shops will be more profitable and more will open
up.
(4)It follows that the rest of the industry will become healthier
more profitable.
4.Overall Objectives
a.Entry Level
To design a marketing strategy that will make windsurfing seem
easy to learn and fun and will not perpetuate the misconceptions
about windsurfing.  
b.Customer Retention
To retain windsurfers once they learn.
c.Industry Viability
To make all levels of the windsurfing industry more profitable.
5.Specific Objectives
a.Entry Level
(1)Marketing
Consumer marketing should feature inviting photographs.  Not
serious boardheads getting air, but young girls, seniors, and
children having fun in a social setting.
(2)Schools
The three instructor certification organizations, U.S. Sailing,
BIG, and WIA should incorporate marketing instruction in their
efforts.  Currently, they provide instructional training and
little in the way of marketing training.  The two are
co-dependent.
(3)Shops
Sales people at the retail need to realize that a fast
transitional board is not the perfect board for everyone.  They
should not project their preferences on everyone.  Too many
people are being sold boards that are inappropriate for a
leisurely, light wind activity.
(4)Manufacturers
Manufacturers need to emphasize moderate wind (entry level)
equipment.  This moderate wind equipment should not be
stigmatized by calling it "entry level", "beginner", or
"starter."  If the industry continues to turn its nose up at
people who just like to sail leisurely, the industry will
continue to decline.
b.Customer Retention
(1)This industry needs to support the social aspect of
windurfing.  This can be done by supporting existing social
organizations such as windsurfing clubs/associations, and by
changing the image of the sport and the appeal to the consumer
and creating a more socially oriented market segment.
c.Industry Viability
(1)The above objective of course will promote the viability of
the industry, but specific efforts must be taken as well.  In
particular, the industry needs to provide more marketing support
to retailers and schools. We must not forget that dollars flow
from the consumer to the retailer to the distributor to the
manufacturer.  Not the other way around.  If consumers buy from
retailers, the money will trickle up.

B.Market Analysis
1.Market Research
a.Description of Christine Brooks' efforts.
b.Description of Recreation Research Group's efforts.
c.Description of "Sailboard Retailer's" research efforts.
2.Overall Market
a.Size in terms of participants
b.Size in terms of dollar volume
c.Demographics
d.Trends
3.Specific Market Segment
a.Who are the various target markets?
4.Competitive Factors
a.Rollerblades
b.Bicycling
5.Other Market Influences
a.Economic factors
(1)Trend of disposable income for target markets.
(2)Projection of disposable income for target markets.
6.Sales Forecasts
a.Historical trends.
b.Projections

C.Development and Production
1.Research and Development
This section should focus on efforts to develop "moderate wind"
equipment at an affordable price.
2.Production Requirements
What are the production requirements to bring a high volume board
to market at a low price?
3.Production Process
Are there any new processes that may help this effort?
4.Quality Assurance/Quality Control
Inexpensive equipment can not mean low quality equipment.  What
should manufacturers not comprise on?
5.Contingency Plans
Are there old designs that should be brought back into
production?

D.Marketing
E.Marketing Orientation
F.Marketing Strategy
1.Entry Level
a.Public relations efforts
b.Developing associations with other organizations
c.AWIA Catalog
d.AWIA Video
2.Customer Retention
a.Windsurfing Clubs/Associations
3.Industry Viability
a.Point of purchase efforts
b.Cross promotions with other industries
c.Windsurfing instructor training organizations
d.AWIA trade show
(1)Ideas for alternate locations.
(2)Ideas for added features.
(3)Travel reimbur***t.
(4)Analysis of merging the AWIA show with another.
e.Exposure in other trade shows
(1)List of trade shows the AWIA should be present.
G.Contingency Plans

III.Financial Data
A.Current Financial Position
B.Break-Even Analysis
C.Financial Projections
1.Plan 1
Assumes high participation from the industry.
2.Plan 2
Assumes moderate increase in participation from the industry.
3.Plan 3
Assumes current participation from the industry.
4.Plan 4
Assumes slight reduction in participation from the industry.
5.Plan 4
Assumes large reduction in participation from the industry.
IV.Organization and Management
A.Key Personnel
1.Executive Director
2.President
3.Vice President
4.Secretary
5.Treasurer
6.Legal Council
7.
B.Other Personnel
1.Dealer/School Boardmembers
a.Definition and purpose
2.Publication/Associate Boardmembers
a.Definition and purpose
3.Committees
a.Marketing Committee
(1)Chairman
(2)Members...
b.Trade Show Committee
(1)Chairman
(2)Members...
c.Public Relations Committee
(1)Chairman
(2)Members...
d.Membership Committee
(1)Chairman
(2)Members...
e.Election Ad Hoc Committee
(1)Chairman
(2)Members...
C.Miscellaneous Issues
D.Contingency Plans

V.Ownership
A.Structure of Business
1.Jim Weinstein, perhaps you could elaborate here.
B.Financing/Equity Considerations

VI.Critical Risks and Problems
A.Descriptions of Risks

VII.Summary and Conclusions
A.Summary
B.Scheduling

VIII.Appendices
A.Market Survey
B.Sample Press Release
C.Historical Financial Statements
D.Current and Projected Profit and Loss Statement
E.Statement of Cash Projections
F.Current and Projected Balance Sheet
G.Resumes of Key Personnel
H.Organizational Tax Returns

--
Bill O'Such
Eastman Kodak Company

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