Motocross isn’t a lifestyle, it’s a life, style is optional. - Graham Noyce
Business Plan
1
21. Customer
2. Index
22. Customer
3. Executive Summary
23. Customer
4. Ethos
24. Customer
5. MX timeline
25. Marketing
6. Team
26. Marketing
7. PHOTO
27. Marketing
8. PHOTO
28. Marketing
9. Details/Vision
29. Finance
10. Details/Vision
30. Finance
11. Brand Identity
31. Finance
12. Brand Identity
32. Finance
13. Brand Identity
33. PHOTO
14. Brand Identity
34. PHOTO
15. Brand Identity
35. Markert Research Survey
16. Brand Identity
36. Markert Research Survey
17. Competitors
37. Markert Research Survey
18. Competitors
38. Markert Research Survey
19. Competitors
39. Note from MD
20. PHOTO
40. The End
Front page: Cole Seely, Troy Lee Designs Lucas Oil Honda, Team Honda Supercross Test Track Quote by Graham Noyce
2
Index
1.
Executive Summary
Business Name : ON THE EDGE Registered Address : Fevrier Hubits De Haut St. Martins Guernsey Channel Island United Kingdom Post Code : GY4 6NA Website Address : www.ontheedge.co.uk Contact Details : Email : info@ontheedge.co.uk Number : 07714 27 28 67 Legal Status : Unincorporated Ownership : Abigail Le Prevost Robin Le Prevost
3
The interest in Extreme Sports may be by way of taking part or just spectating. My followers will want to ‘get involved’ and make their opinions known. In the past it has been accepted that trend for men moves at a slower pace than womens, however the gap is closing rapidly with my followers now wanting up to the minute fashion which is on trend with colour and style. Traditionally women prefer to have different clothes for different occasions i.e. Work, Leisure, Sport etc. Men want their clothing to cover a wider range of activities with Sport clothing easily crossing over to Leisure and even Work.
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Ethos
‘Webazine’ an online and interactive magazine style website where men can read about their favourite extreme sport, latest gadgets and even fashion. The reader can post and discuss their thoughts, photos or videos and exchange views and ideas with other like-minded people, they will become my ‘followers’.
1906 First originated in the UK Became more known internationally 1924 First scramble race took place 1930 British teams would compete
1940 BSA riders dominated internationally
1950 Swinging fork rear suspension was designed 1952 European 500cc Championship started 1957 World championship status 1962 250cc world championship was created 1966 MX was introduced to USA Expolosive growth in the sport
1972 First Stadium sx event - Los Angeles Coliseum 1975 125cc world championship was introduced 1980 Americans began winning international competitions
1970 Suzuki their claimed first world championship 1970s European riders continue to dominate mx
1990 Environmental issues in California forced manufacturers to develop environmentally friendly four-stroke technology 1993 First back flip
1995 X Games started 1997 FMX was founded 1998 First womans MX race 2004 125cc was renamed MX2 and 250cc MX1 2004 Pit bikes were designed
2005 First womans world cup
2006 Travis Pastrana became the first rider to land a double backflip in a competition 2006 Veterans’ World Cup was created 2008 Womans got world championship status 2011 First monster energy cup 2013 SX champions 450cc - Ryan Villopoto, 250cc West - Ken Roczen and 250cc East - Will Hahn
Abigail Hansie Amelia Le Prevost, know as - Abi
MD Currently at AUB studying Fashion Promotion My main area of interest is men’s fashion particularly sports fashion and the use of technology to enhance performance clothing and the different dimensions this can add. I have excellent digital communication skills and social networking knowledge which is universally required in the fashion industry today.
Oppisite page Mx time line 1906 to present showing all the big events in history.
6
Team
7
8
Details/Vision
On The Edge (OTE) is an information and promotional website that will appeal to people who participate in, or who wish to follow the world of Extreme Sports. To begin with OTE will concentrate on Motocross (MX) as this is something I have knowledge of and also, more importantly, I have immediate access to a number of participants in the sport. However I see the website quickly evolving and expanding to include skate boarding, snowboarding, BMX etc, in fact any extreme sport that my followers wish to see added. OTE will give it's followers the opportunity to be kept informed of the latest updates in relation to their chosen sport, i.e. articles about any new hi-tech fabrics for performance sportswear, the introduction of new kit and accessories - opinions will be sought from the followers on the functionality, reliability and accessibility. General news on the sport, and updates about the top performers and the up and coming stars to watch out for. Action videos will be a mainstay of the website. The emergence of cameras such as the GoPro have opened up endless possibilities of filming oneself, team mates and others whilst actually participating in the sport. The cameras can be attached to helmets, handlebars, skateboards, surfboards to mention a few. This has led to a wealth of filmed material being available on websites such as You Tube, but what I want to do is bring these films together in one place where they can be reviewed and discussed by like-minded followers. By comparing themselves to others techniques and style can be changed or improved upon. Venues (well known, new or under utilised) can be discussed with users (both participants and spectators) making comments and recommendations.
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Double Page #151: Justin Barcia, Geico Honda, Blue Diamond MX Park
Details/Vision
In addition to the sport angle I also propose to include information and articles on mens grooming and wellbeing, as well as sports clothing that has crossed over into the street style market. I see my followers being typical ‘metrosexual man’ - happy to shop, visit the Gym and his hairdresser. He will probably be unmarried and have a disposable income. He likes to look good and whilst he takes a keen interest in his chosen sport he looks to be associated with that sport by way of his individual and casual style. It should all look effortlessly achieved!
My first action would be to launch a website, this would be quickly followed by an App. I would also send out regular updates via Facebook and Twitter to keep my followers interested and included. Inclusion plays a big part in my vision, I want my followers to feel compelled to get involved and help create the 'Webazine' (as it will be known) my job will be to make it happen and to keep it interesting by linking similar material together, as well as introducing those with opposing views in order that informed discussions can take place. Everyone always has an opinion and this is somewhere they can actually air those thoughts with the like minded.
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Brand Identity
Choosing Brand Name Business Name
19%
30%
7% 4% 41% 19% On The Edge 4% In The Zone 30% Forty Four 41% Live - Breathe - Ride 7% To The Limit ON THE EDGE
Living on the edge - "a type of life in which you are often involved in exciting or dangerous activities. If you were always living on the edge like that I'm sure you wouldn't live past the age of sixty". Extreme Sports encompasses this ethos - pushing yourself to the limit, higher, faster, better. Even spectators get a thrill out of watching this type of performance. My webazine will bring like minded people together to show, discuss and share. LIVE - BREATHE - RIDE This tag line can be attributed to all those that take their extreme sport very seriously be it MX, Surfing, Skateboarding or Snowboarding to name but a few. My experience of the MX riders I have met epitomise the quote "Motocross isn't a lifestyle - its a life - style is optional".
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Brand Identity
Logo Designs
LOGO Black, White and Grey - Colours that stand out, and are good to work with, allowing simple, clean and masculine designs which have immediate impact. The logo design reproduces well on all merchandise and against a myriad of background colours.
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Brand Identity
BUSINESS CARD Part of my advertising will be to hand out my Business Cards at all events I attend, and to everyone who appear in my street style reports and photos. They will be encouraged to visit the site to view their photos and to become ‘a follower’.
BRANDED VECHICLE Going to MX and other sports events having a Van willl be great advitisment on the road, with having to pay just one off fee for the graphics and having a VW Transporter all ready its a cheap advitisment.
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14
Brand Identity
BRANDED MERCHANDISE
T-Shirts, hats, phone cases and stickers all symbolise the brand. These goods are important as they allow my followers to identify each other, instantly recognising a 'brother'. People wear labels to show their appreciation of that brand and to tell you something about themselves and their aspirations. This is a simple way people can show support for a particular individual, team, sport or cause. Celebrity endorsement can increase sales instantly.
15
37.5
25.0
‘Branded merchandise is a great way to get ON THE EDGE out in there.’
12.5
0
Yes
No
Other Skipped
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Competitors
Branded merchandise
50.0
My research on competitors has been to review various websites and magazines ranging from niche sports to fashion for men . You Tube attracts users due to its ability to share and comment on postings and has a proven track record, with its most popular videos going viral in a matter of hours. Whilst sporting action is posted it can take a while to find what you are looking for and the site does not send out ‘Alerts’. OTE has the advantage of posting action videos for individual sports and followers will be ‘Alerted’ to any new postings that will be of interest to them. Vurb Moto is a MX website. The articles are of a more journalistic nature and only edited videos are available to view. Readers can comment only. Moto produces a magazine and has a website and App. It offers a forum which allows discussion by readers and videos can be uploaded to their site. Moto is purely MX it does not offer its reader information of any other sports, or lifestyle trends.
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Ben Le Cornu, Danger UK KTM, Guernsey twoday MX 2012
YouTube
Fashion Bean
Fashion
Mpora
JC Clothing Moto Mag
Competitors
Interactive
Sports
Broken Clothing Co
Vurb Moto
Not Interactive
Using the positioning map I have shown where OTE’s rivals are positioned, using the Y axis to show how interactive they are with their customer and the X axis showing where they are between Sports and Fashion. You can see the gap for OTE as it is centre top of interactive and in the middle of fashion and sports.
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Competitors
Mpora is a website only competitor but although this website invites users to upload videos and photos, and enter various competitions the participation by readers is limited, the blog is a series of postings (written mainly by the Managing Editor of Mpora) which seem only to advertise upcoming events. This site relies heavily on leading the user to other more specific websites for their chosen sport, and whilst these websites provide in-depth information they do not promote the amount of user interaction that OTE will encourage from its followers. Mpora or the other websites mentioned do not include the lifestyle trends that OTE will also be covering. JC Clothing Company is an ethical brand based in Australia and not widely followed outside of there - they do have their own FMX Team. Whilst they could be seen as a competitor I like the feel of their website which includes a lifestyle element - they currently head up The JC Denim Stop Traffik campaign which produces hi-quality denim jeans. This is “A fashion-meets-socialjustice project” something which I would like OTE to aspire to. OTE will be more than just a Sports ‘webazine’ its unique selling point will be as a sought after communication tool for men. It will combine interests they care about with lifestyle trends. OTE will go further; when providing information on sports clothing, where possible, it will lead the follower to ethical clothing companies, as many of todays generation like to ‘do their bit’ so why not benefit someone less fortunate than yourself by way of the choices you make. There are similarities between all of the above, however I have been unable to identify a direct like for like competitor to On The Edge. OTE is all about participation and interaction with its end user - ‘the follower’, building a community interest through technology. OTE will appeal to a wider audience due to its more diverse content and my conclusion is that On The Edge is a unique concept.
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Photo opposite, Twitch at X Games 2012 Gold meld
Customer
Age
40 30
‘This shows 19-22 year olds have the most interest in ON THE EDGE therefore we will base our site in favour of them.’
20 10 0
16-18
19-22
23-26
27-30
21
31+
As On the Edge gains popularity I would like to see the demographic change to include men of all ages who perhaps although no longer taking part are still keen to follow their chosen extreme sport. The Lifestyle element of the webazine will appeal to them, as with their interaction and participation, this can quickly grow to include any current issues that may be being discussed at any given time.
Customer
On The Edge will appeal initially to those participating in or with a strong interest in Extreme Sport, starting with Motocross (MX). The age group will be sixteen to thirty, mainly single men with a disposable income.
The metrosexual is here to stay and the current generation will continue to expect technology to play a part in every aspect of their lives from hobbies and interests, to trends and wellbeing. All information must be available at the 'touch of a screen or a button' when they want it. They want to be kept constantly updated with news and information as it happens this generation does not need to wait for news and sports bulletins on the TV or a newspaper through the door. They want it now and they can have it.
What do you do
30.0 22.5 15.0 7.5 0
Participate
Not interested
‘From the survey ON THE EDGE have found that MX is one of the stongest extreme sports. So we will use the findings and start off with basing the site around MX.’
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Customer
Follower Profile
Ryan is twenty-three, active and currently single - although always on the look-out! Clean shaven and middle class, He still lives at home with his parents in Dorset, like many of his mates. ÂŁ20,000 a year does not run to a place of his own and why bother when he can come and go as he pleases and has no bills to pay, apart from the up keep of his VW Transporter. He enjoys his job as a sound engineer in a small recording company but is always looking for the move that will get him into working with well known bands and recording stars. Style is important. He favours a street look and wears all the brands - Troylee designs, DC, Fox, Oakley and Alpinestars all make an appearance in his wardrobe. He has an assortment of hats with a new era flat cap being his current favourite. Clothes must be comfortable as well as fashionable, a look that is easy to maintain but can take you anywhere - work, pub or club. Ryan is up to date with the latest technology, his newest purchase being his GoPro camera meaning he can film him and his mates, stream it back and immediately watch it on his iPad which goes everywhere with him. He Likes to keep up to date with the sports, news and watches American super cross online. He spends his spare time hanging out with his mates working on their bikes, doing up cars and watching extreme sports. MX every other weekend, gym in the week, and weekends away with his friends. He mainly shops online. He downloads music, lots of American bands, and films. Ryan is very creative. His friends are always asking him to customize their bike helmets and to search out new kit, which must include an element of safety as well as looking good. Holidays are usually spent in vans on road trips. They travel with their bikes visiting Motocross circuits throughout the UK and Europe. In the Winter they swop bikes for snowboards - both adrenalin pumping sports! Ryan has persuaded his close friends to go on a month long holiday to the US, where they will be visiting amazing MX circuits and have bikes lined up to use and 'show the Americans how it is done'. They will drop into Las Vegas for a little RnR- the ultimate 'lads' vacation! He dreams of living in California and of a career in extreme sports; a dirt track on his door step and snow covered mountains in sight.
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Pen Portrait
Marketing
Marketing and Promotion will be the biggest focus for On The Edge due to it being such an interactive site. Making people feel part of On the Edge and being engaged by it is fundamental. A number of strategies will be deployed to get that crucial engagement; Viral Marketing - Marketing campaigns where the message is spread by consumers on the internet . Experience marketing - focuses on experience as a way to create connection between a publication and its audience. Market Research - research into a specific market including investigation of consumers. Peer Marketing - Recommendation and promotion of products among consumer. E-commerce - Business and retail conducted via the internet. Direct marketing - when a company markets directly to the end consumer via mail out, emails, text message or magazine inserts. Crowdsourcing - A Company outsources design or other functions to the public, usually via the internet. Promotion and PR Business cards Flyers/leaflets Branded merchandise - Stickers, Hats, Hoodies, t-shirts (organic) – to engender a feeling of being part of a team. Vehicle graphics Event attendance utilising stands, promotional give-aways and retail selling. Sponsorships from relevant brands. Hold competitions to gain exposure and marketing lists. QR codes to drive traffic to the website.
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Photo of the week from social network. Street style - if photo is taken then business card is given and encourage tags on social media sites. WEBSITE - will be designed using Adobe Dreamweaver, Muse or Wordpress.org. I have already enlisted help to build the site from a colleague who is working for me at a vastly reduced rate. Crowdsourcing A simple and effective way of obtaining material and articles to use on the website. The primary attraction for Crowdsources is seeing their work ‘out there’, other benefits include social contact and the possibility of their contributions leading to future financial gain or reward. It is crucial for the website to have an open format which can lead to a large network of contributors, this provides the obvious financial benefit of little or no payment being necessary, in the early days, as well as an ever changing discussion base. APP - Smart phone/tablet allowing people to keep connected with OTE wherever they are, with the ability to send Notifications and keeping people updated all the time. The OTE app will allow you to upload and comment on the site as if you had accessed it from the web page. 27% of the 4 billion mobile phones worldwide are smartphones 25% of smartphone owners go online mostly on their phones 62% reach for their smartphones immediately after waking up, while 79% do so within 15 minutes of waking up
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Marketing
Use social media for competitions - like, follow, share and win (a photo of the prize - t-shirts, hats etc.)
Marketing
FACEBOOK +350 million users suffer from Facebook addiction syndrome. INSTAGRAM 575 Likes per second. 5million images uploaded every 24 hours. TWITTER If twitter was a country it would be the 12th largest in the world. YOUTUBE The average visitor spends 15 minutes a day on the site. Facebook Promoted posts (pages with over 100 likes) - increase your audience. People to tag themselves in photos, follow, share, like. Be able to talk to OTE. Instagram Followers are interested in the behind the scenes, advertise where you are going to or have been. Document everything through a photo (photo = 1000s words) It’s human nature to be curious about what’s going on. Interact with followers - ‘like’ photos, comment, follow back in return builds the community, encourage uploads and hash tags. ‘aura’ - the distinctive atmosphere or quality that seems to surround and be generated by a person, thing, or place Twitter Grow your business, 140 characters at a time Retweets lets your followers know you are interested in what they are doing. Encourage hash tags Competitions again - tags, shares, likes Pay to increase your market presence All the above provide cost effective and rapid market penetration which is absolutely essential and relevant to the target market. AMAZON/EBAY - Get people through online shops - they search for things and come across OTE from tags.
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Marketing
View social media
Twitter Instagram Facebook Apps Websites Other Skipped 0
15
30
45
60
‘Tumblr’ Using the findings from the research survey 95.2 % use facebook, 51.6% use apps on there phone
Interact social media
60
45
30
15
0
Websites
Skipped
When asked if they interacted with social media sites, the outcome was highly possitive. Being able to link all your social media together now makes it easier to post on facebook, instagram and twitter.
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Finance
Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
Website Development & Hosting
£382.45
£500.00
£750.00
£1,000.00
£2,000.00
Promotional material
£397.00
£500.00
£600.00
£700.00
£800.00
Travel
£200.00
£800.00
£2,800.00
£4,000.00
£6,000.00
Telephone
£600.00
£720.00
£840.00
£960.00
£1,080.00
General Office Exp
£480.00
£550.00
£750.00
£1,000.00
£1,250.00
£0.00
£0.00
£0.00
£0.00
£0.00
Total Expenses
£2,059.45
£3,070.00
£5,740.00
£7,660.00
£11,130.00
Total Income @ 5% hit rate
£1,067.50
£2,135.00
£4,270.00
£8,540.00
£17,080.00
Total Income @ 10% hit rate
£2,135.00
£4,270.00
£8,540.00
£17,080.00
£34,160.00
Profit / Loss @5%
-£991.95
-£935.00
-£1,470.00
£880.00
£5,950.00
Profit / Loss @10%
£75.55
£1,200.00
£2,800.00
£9,420.00
£23,030.00
Salary
No salary would be requi
No salary would be taken until the business was able to afford it, so I will be working this part time with another job untill a salary could be paid out of the profits.
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Oppisite page Honda Crf250r 4 stroke - Joseph Holden
2 Years 3 Years 4 Years 5 Years
Time Period 1 Year
2 Years 3 Years 4 Years 5 Years
Unique Users 5000
Increase in Users
10.0%
5.0%
500
250
10000
5000
1,000
500
20000
10000
2,000
1000
40000
20000
4,000
2000
80000
40000
8,000
4000
Buying Users
Profit
Buying Users
Profit
Avg Profit per sale.
500
£2,135.00
250
£1,067.50
£4.27
1000
£4,270.00
500
£2,135.00
2000
£8,540.00
1000
£4,270.00
4000
£17,080.00
2000
£8,540.00
8000
£34,160.00
4000
£17,080.00
Finance
Time Period 1 Year
Of which 40% click throu
Of which 40% click through, 25% buy merchandise and 35% create affiliate commission. Therefore average profit per buying user = £4.27
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Finance
Start Set up a website, Run OTE from home in Guernsey, Working by myself with the help of friends and family. Build a team, From working by myself having people work for me to enable me to keep up todate in all areas of extreme sports.
1Year Introduce other sports into OTE, from only having MX this will increase my followers.
2-3 years Sponsor amateur sportsmen - my logo on their bikes giving increased exposure. Using the sports covage as advertisment.
5 years Clothing and merchandising - add more lines. Build a specific sports team,
8-10 years Main aim will be to sponsor competitions, an to building OTE to become a leading world wide and respected brand.
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Time line of OTE progression.
Assumptions
Sales Income
Contribution
Income
Cost
Click Through Commission
£ 0.06
00
£ 0.06
40
£ 2.40
Affiliate Income
£ 5.00
00
£ 5.00
35
£ 175.00
Direct Merchandising Sales
£ 25.00
£ 10.00
25
£ 250.00
£ 15.00
Profit
to Avg sale
£ 427.40
Average Sales based on 40% create click through income, 25% buy merchandise and 35% create affiliate income. In turn this creates an average profit per buying user of £4.27.
Web Hosting
Website Construction
£14.95 £7.5 £360 £382.45
Company Ads Van graphics
Business Cards
Brochures and hand bills
Price
Quantity
Total
£98.00
1
£98.00
£49.00
250
£49.00
£250.00
£250.00 £397.00
Stock
Price
Amount
200 (Merchandise)
£10.00
£2,000.00
Travel Cost Trips year Total
Phone bill Rent
General Office Expenses
30% of Gross profit on sales. Based on average purchase of £25.00 assuming gross profit of £15.00 Based on average sale less cost of production (65%) and distribution (35%). Includes a 40% personal discount.
Website
Web Address
Average click through commission £0.06
1 Year £200.00 1 £200.00
£50 per month N/A
£40 per month
2 Years £200.00 4 £800.00
£60
3 Years £350.00 8 £2,800.00
£70
4 Years £400.00 10 £4,000.00
£80
5 Years £500.00 12 £6,000.00
£90
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Market Research Survey
63 people took part in the Survey from all over the world. OTE have used the market research to find out about their potential followers. Questions asked ranged from how old they are to what extreme sports they do. From the answers OTE received, the website will be be designed around what the follower wants to see. The majority read magazines and prefer to read them as hard copy, using this imfomation On The Edge will concider publishing a monthly print out.
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37.5 25.0 12.5 0
Blogs
News Paper
78% like to read Magazines
79% prefer Hard copy to an online magazine.
Do you prefer Hard copy Online Skipped 0
12.5
25.0
37.5
36
50.0
Market Research Survey
Do you read any of the following
50.0
Market Research Survey
How much a month £
40
30
20
10
0
Under £5
£5-£10
£10+
Skipped
‘Having asked about monthly sub- scriptions ON THE EDGE will look to charge around £4.99’
Competitions
Graphics Videos Photo Skipped 0
10
20
30
40
‘Having competitions will encorage followers to upload their videos and photos, which will populate my site.’
37
Double page, Ken Roczen, Red Bull KTM, Lake Elsinore Pro Ride Day 2013
Yes
No
37% ‘Would especially ap- preciate being able to contribute to the content.’
63%
‘Loads of Ass’
‘Including, upcom- ing events, deals/ sales etc on equipment/ merchandise also competitions’
The last question was would you be intrested in the site, 63.5% said they would with a few saying no due to not being intrested in sports. Finally there was a comment box at the end of the survey, asking for any ideas. The responses are as above - highlighted in green.
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Market Research Survey
Interested in the site
Note From the MD - Producing my Business Plan for On The Edge has been a very interesting experience. I have learnt a lot from all of my research about starting my dream business like how to approach other businesses and most importantly how to engage with my ‘followers’ and to provide them with what they want. As suggested I bought the book ‘How To Start a Business with No Money’ by Rachel Bridge and this has proved to be an invaluable source of information. On The Edge is a combination of my love for guys style, my interest in the extreme sport of MX and being able to use my considerable digital communication skills and knowledge of social networking. As part of my research I have visited and watched MX in Guernsey and the UK, notably #RBPN. I have shared my experiences on Facebook and Twitter and have even been Re-Tweeted by Red Bull one of the main sponsors of MX - result!!
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Photo above, #92: Adam Cianciarulo, Pro Circuit Kawasaki, 2nd Place @ 2012 Amateur All Stars Monster Energy Cup
The End
Business Plan by Abigail Le Prevost Managing Director of On The Edge
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