Integrated Marketing Communication: Becker Surf and Sports - Case Study Example

Becker Surf and Sports Becker Surf and Sports Executive Summary Becker surf is one of theleading manufacturer and retailer of surf sport accessories and gears it carter’s different youth and young adults male and females who have keen interest in surfing. The main focus of the company is to introduce heating surfboards for its customers to keep away the sharks. The company shall provide cutting edge design and trends to meet the requirement of the market (Luther, 2011). The company believes that it shall position itself among the best retailers of the surfing gears in the market with the top shopping services. • Current Marketing Situation Our market research in the Southern coastal areas of the United States indicates that the surfers are frustrated and disappointed to not to surf in the higher tides in the deep sea because of the fear of the sharks (Kurtz & Boone, 2012). Over the past five years about 30,000 cases about the shark attacks have been reported all around the world, an average of about 38 percent surfers report shark attack and 4.2 percent on an average fatal rate have been reported. This reflects tat the surfers are at great risk of shark attack that can lead to serious injuries or death rates. According to the report of International Shark Attack file (2010), it has been observed that there has been a gradual increase in the beach attendance, whereas the shark attacks to surfers have significant inclined in the past five years. Usually the surfers are unaware of the speedy surfing in the high tides due to which the shark underneath the water often get hit or blood particles from the surfer’s goes in the water, due a number of provoked and unprovoked attacks have been reported. The surfer are often hit, bumped or hit and run attacked by the sharks this is because the sharks are curious about the new or different creature in their territory and do not want them in their territories due to which they attach surfers. The reason that surfers are more often victims of shark attack is because shark mistakes the shape of the surfing board. During the months of August to November when the summer heat is low the number of sharks attacks on surfers increases, among 108 attacks 54% percent shark attacks are reported by surfers. The surfers are looking forward for new accessories and surf boards that can allow them to do their sports effectively and keep away the sharks. Our objective is to capture the market to about 70% share to become the central hub for the local surfing population through enjoying with our new surfboards to keep away the sharks. We aim to open our outlets in the southern east and west region of the United States. In addition, the online stores shall allow the company to expand its business in international market. This location shall be favorable as it is the main hub for the professional surfers and can be easy to reach our target market. The new and advance heating feature of the surfing board is critical and initial success to our long-term growth. The company shall focus mainly on the surfing population belonging to the middle and higher class. • SWOT and Market Analysis The main targeted customer for our product shall be the different teen, young and adults that are interested surfing in the deep sea. The product we aim to launch shall serve our local surfers and professionals to enjoy surfing in the deep sea, as we are situated in the southern coasts of the United States here the summers are longer due to which the business shall be able to attract large percentage of customers in the area (Stolar, 2009). In addition, the product shall be designed according to the market demand of the customers to meet the demands of the customers. The assortment in the designs of the surfboard shall be the trend setter in the market for the customers of the higher classes. Different customized features shall also be incorporated in the surf gears and board to attract curious seekers. The other target of customer will be the popularity of stores that shall allow local curious seekers to make seasonal purchases during all the boarding seasons. SWOT analysis Strength Becker Surf is one of the oldest manufacturers and retailers of surfing boards and gears in the industry. It has a brand image and it is a prominent trendsetter in the industry. Becker’s loyalty towards its customer and brand image is one of the major strength for the Becker to increase the sales of its heating surfing board. The assorted customized heating surfing board shall attract customers that are curious in surfing and water activities. Weakness Heating surfing board is expensive due to which affording these boards and gears for the all the customer is difficult. Surfing is a seasonal sport due to which the demands of the surfing boards are in the summer seasons. Opportunities Other competitors do not produce heating surfing boards and due to this the unique feature of the board shall attract more customers. The customized feature for its customer can attract more customers towards the surfing sports. Brand image and customer’s loyalty can be a major contribution for higher sales volume of the company. Threats Change in the market trends and customer behavior. Decline in the recreational activities of the tourist can affect the sale of the surfing boards. In addition, intense competition in the market can be the threat to for the company to maintain its edge in the market. • Objectives and issues Objectives Provide high quality surfing boards with the feature of heating to keep the sharks away. Improve market positioning Be the trend setter in the market To capture 70 percent market shares Issues Tough competition Technical improvement Direct customers to order surfing boards Provide competitive prices • Marketing Communications Strategy/Positioning Strategy Surfing has become one of the fast growing industries in the Southern coasts of United States. Locals and Tourist throughout the world come for surfing in the area; therefore surfing has become more a passion than a fad or pastime. Therefore, unisex features and design for the boards shall be induced in the product line therefore it is a greatest opportunity for Becker to be a part of growing industry. Our targeted customers shall be the younger adult’s customers as they are more passionate for sports and trend followers. Trendsetter Becker aims to be trendsetter in the market with the innovative feature of heating in the surfing board to overcome the frustration of the surfers to keep away the sharks. The company aims to keep update and enacted with its customer through online chat boards, manufacturer, new technology and designs. To be the pioneer for the heating board for new board style and designs to give them edge in the market. Offer competitive price in the market with the great deal of money to maintain the edge. The custom ordering capabilities our product will make the customer feel like they have discovered their own trend. Trend follower Becker aims to focus its anxious customer to maintain the edge in the market and playing constant game of catch up with the trendsetter with the purchase of the new and updated purchases of the surfing board. The online forum shall keep the customer engaged to learn about the new style online and magazine (Becker, 2014). Our objective is to be the top local trend to keep the best and updates surfing boards and gears in the market with the good array of colors and designs with the accessories for the style of the month (Pickton & Broderick, 2009). • Tactics and Action Programs Becker’s objective is to be the special provider of the surfing board and gears with the heating feature, along with the different hardware and miscellaneous special items (Caywood, 2013). To serve the surfing community in the southern region with the new trends and features of the surfing boards in the market. There are few manufacturers of the competitors, therefore, customers think that they have no alternatives to go for purchases (Yeshin, 2012). This shall welcome locals and tourists to have an alternative for surfing board. Be the first introducer of the heating feature in the surfing board Offer competitive prices and latest trend in the market Sponsorship card to provide discounts to its new surfers Best location for the customers to have a close access to targeted customer Sale and package deals Marketing Strategy The main objective to increases sales by 15 percent and to increase customer retention in the market Stay tuned with the customer through social forum interaction In order to market the product at a wider platform, the company shall sponsor surfing events and competition. One of the major focus of the company shall remain is its online advertisement of different social media websites, traveling and sport websites. In addition, viral marketing shall also be done for the product so that the every advertisement goes with the other user who interacts with each other. Different banner, surfers, tee shirts, sport products shall be distributed. Sales Strategy Maintain database with the customer with their name, address and purchase information to keep enacted with them. Offering 15 days exchange or return policy for the customers to build trust with its customer retention and loyalty. • Develop Messaging “Surfing with sharks- our surfing board keeps them away”. Evaluation As the main focus of this Integrate Marketing Communication strategy is to promote heating surfing board. The succession of the campaign can be evaluated through the increase of its sales to about 15% by the next year. In addition, the online sales and promotions of the product on the global platform can be main determinant to evaluate succession of the campaign. The decline in the shark attacks reported by surfers will also be a prominent factor to determine succession of the campaign. For this purpose, a reduction of 25% is set as a target for performance evaluation. • Develop Budget Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales Apparel 0% $6,000 $5,700 $8,000 $7,600 $9,000 $7,600 $6,000 $9,200 $6,000 $5,700 $6,200 $7,000 Boards/Hardware/Misc. 0% $2,400 $2,300 $2,680 $3,360 $2,450 $2,200 $2,100 $4,400 $5,000 $4,700 $2,200 $2,400 Total Sales $11,700 $11,160 $15,380 $17,360 $20,250 $15,800 $11,800 $22,400 $17,400 $15,100 $11,500 $12,600 Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Boards/Hardware/Misc. $1,080 $1,035 $1,206 $1,512 $1,103 $990 $945 $1,980 $2,250 $2,115 $990 $1,080 Subtotal Direct Cost of Sales $5,265 $5,022 $6,921 $7,812 $9,113 $7,110 $5,310 $10,080 $7,830 $6,795 $5,175 $5,670 ESTIMATED BUDGET Year 1 Year 2 Year 3 Sales $182,450 $208,008 $236,089 Direct Cost of Sales $82,103 $93,604 $106,240 Other $0 $0 $0 Total Cost of Sales $82,103 $93,604 $106,240 Gross Margin $100,348 $114,404 $129,849 Gross Margin % 55.00% 55.00% 55.00% Expenses Payroll $43,884 $50,329 $51,846 Marketing/Promotion $9,600 $11,040 $12,696 Depreciation $0 $0 $0 Rent $22,500 $23,175 $23,870 Utilities $2,700 $2,781 $2,865 Insurance $576 $576 $576 Payroll Taxes $0 $0 $0 Telephone $1,560 $1,560 $1,560 Total Operating Expenses $80,820 $89,461 $93,413 Profit Before Interest and Taxes $19,528 $24,943 $36,436 EBITDA $19,528 $24,943 $36,436 Interest Expense $4,098 $2,501 $834 Taxes Incurred $4,629 $6,733 $10,681 Net Profit $10,801 $15,710 $24,922 Net Profit/Sales 5.92% 7.55% 10.56% References Becker. (2014). Becker Surf and Gears. Retrieved from http://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCkQFjAA&url=http%3A%2F%2Fbeckersurf.com%2F&ei=aO1oU_fJEoTe7Aab1oGYDw&usg=AFQjCNG9owdI9WsVsdZjPgmB2o_SbvzzVA&sig2=BvC5ttIEu6ZAWB52bMrjEQ Caywood, C. L. (2013). of Integrated Marketing Communications. The Handbook of Communication and Corporate Reputation, 49. Kurtz, D., & Boone, L. (2012). Contemporary Marketing, 2013 Update. New York: Cengage Learning. Luther, W. (2011). The Marketing Plan: How to Prepare and Implement it. New York: AMACOM Div American Mgmt Assn. Pickton, D., & Broderick, A. (2009). Integrated Marketing Communication. New York: Prentice Hall. Stolar, D. (2009). Developing Successful Sport Marketing Plans. New York: Fitness Information Technology. Yeshin, T. (2012). Integrated marketing communications. New Jersey: Routledge. Read More