Rush marketing plan by Tom Williams

MARKETING PLAN Jazmine Brown | Makoa Ho Elle Merril | Hannah Sippel Armaine Tomacder | Tom Williams point loma nazarene university

RUSH

marketing plan

TABLE OF CONTENTS 3

Executive Summary

Internal Analysis

Customer Analysis

Competition

Macro-environmental Factors

Strengths

Weaknesses

Opportunities

Threats

Segmentation & Targeting Strategy

Products & services

Features

Pricing Plan

Distribution Plan

Promotion Plan

Measures, Evaluation & Budget

Works Cited

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EXECUTIVE SUMMARY Rush is a durable, bold, modern company breaking into the sports utility industry. It aspires to provide explorers with quality backpacks that exceed consumers current opinions on what a backpack is capable of. Not only are Rush’s backpacks waterproof, they are also stylish, fair trade, and durable. Rush has one product: waterproof backpacks. These backpacks are designed to provide hikers, adventure-seekers, and travelers with gear that will protect their belongings from nature’s elements while they enjoy the “rush” of life.These backpacks come in multiple sizes which gear to specific sports and activities. They also have a variety of print and color options, allowing customers to express their style while on the go in nature. The target market is adventure seekers who have a zest for life and a passion for the outdoors. They are both male and female, live mostly in the Pacific Northwest, and range in age from 25-65 years old. All of these potential customers are valuable to Rush, as the company will provide them with the best back pack possible. Rush’s marketing objectives include brand awareness, growth within the outdoor market, emergence into new markets, and growth in sales. The marketing budget of $750,000 will take care of advertisements, website costs, sponsorship costs, promotional activity, sample products, and sale promotions. The advertisements for Rush will cost $490,000, which includes the company’s print advertisements and online advertisements. In addition to this, $250,000 will be allocated for the creation and maintenance for the online website. A total of $10,000 will be spent for our ten sponsored outdoor enthusiasts; each of our advocates will receive $1,000 worth of merchandise and promotional goods.

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INTERNAL ANALYSIS Rush is a new company in the activewear industry. It has recently been introduced and is based in San Diego, California. Rush aspires to create and design athletic gear for sports such as surfing, sailing, hiking, and other action water sports; however, Rush will primarily focus on waterproof backpacks and hopes to showcase that to customers. The company will be competitive with other brands such as Patagonia, Hurley, Quiksilver, Jansport, North Face, and Dakine due to its similar products and styles that provide trendy and even rugged elements. What sets Rush apart from the rest are the qualities of innovation and equality. The company’s waterproof backpacks will have new design features, unique to the company including individually sealed pockets, completely waterproof fabric, and moneyback guarantee on products. Second, Rush ensures that its backpacks are manufactured in ethical factories, making the backpacks fair trade products. Rush will incorporate fair trade products, innovative technology, functionality, and fashion into our products. Rush’s mission is to provide adventure seekers with products that are “resilient, rigorous, and ready for adventure”. The name Rush derives from the feeling customers get when adventuring. The company will target adventure seekers, athletes, and those who are young at heart. Rush’s leading product is the waterproof backpack, which is both functional and fashion-conscious. In the community of adventure-seekers, the company observed a need for backpacks that protect our belongings from the elements. With the use of waterproof backpacks, consumers will be able to not only keep their gear safe, but also continue to participate in daring activities without worry.

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A biggest strength of Rush is that it is a fresh, new company. The company is just entering the market, and it is exciting to customers, because it is introducing an innovative product. Secondly, Rush’s backpack designs are different from competitors, because the waterproof technology is greater, Rush will offer a greater variety of design options, and the products will be fair trade. These products are designed with the latest technology that seals water out, yet the backpacks come in various designs and colors to keep personal style in mind. An additional strength is the fact that the company employees, both developers and salespersons classify as the target market people we aim to reach. Because Rush employees are the target market they are selling to, they can easily identify and create products our customers desire. Also, Rush’s target market is not narrowed by a specific subculture or socio economic group, since our product is relatable to many sports, and has various product prices. The two weaknesses Rush faces are its lack of finances and newness as a company. Since the company is low on finances to begin, it will have to take a conservative approach, and reach out to investors. Secondly, its new spot on the market is both a strength and weakness. Although the lack of experience may challenge Rush, it also means it is putting new ideas into the market.

CUSTOMER ANALYSIS

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Rush, an outdoor equipment company, is dedicated to providing the experienced hiker, avid outdoor enthusiast, and adventurous world traveler, with the ideal waterproof backpack. This backpack will meet all of the technical requirements of a fully waterproof- not just water resistantpack. It will be trendy enough to be used for simply going to school or for a weekend getaway.

This generation is also full of hikers. As they go through exciting new experiences, they don’t want to be held back by the fear of their precious items being ruined. While researching an article about complaints from Hikers was found. They stated that there is a lack of waterproof backpacks on the market, calling it a “four-leaf clover of the... backpacking gear world”. In the following comments of this article, people replied with:

The ideal adventure-seeking customer is between age 18 and 35 and is either male or female. Based off of research done on so called ‘adventure travelers’, there is a large number of potential customers included in this target who are millennials. This customer regularly makes purchases from companies such as REI and most likely owns products from companies such as Patagonia, Timberland, Quicksilver, Columbia Sportswear, and The North Face. While these companies help identify the buying habits of the ideal customer, Rush’s customers are primarily in a more concentrated segment. This is because Rush, as a new company, only has the one primary product so the market base is slightly different from these other larger companies. Rush expects this segment to purchase backpacks for hiking, surfing, skiing, and beyond. Since similar products from the companies listed before can cost upwards of $200 they will be willing to pay in the same price range for Rush’s products. These backpacks are considered an ‘investment’ purchase. The quality and functionality of the product will be the main selling point of the product. With features including water-tight zippers, and waterproof fabric, the backpack will be both durable and hydrophobic. In addition, the product will come with various print, color, and style options, incorporating fashion into function.

“Sigh. I feel like I’ll never find the perfect pack... I’m shocked a better waterproof hiking pack doesn’t exist.”

“Very useful post and deals with an issue I have also been thinking for a long time :((“ “...It really is impressive how companies fail to recognize smart and efficient materials to use in product confection. Especially with backpacks, there seems to be a great issue with simply researching the market and responding to the demands of users.” After reading all of the following comments, especially the last one, Rush employees understood just how much enthusiastic globetrotters are seeking a functional backpack. However our current era also shows a growing trend of ‘wanderlust’ youth who want to travel the world and be ‘hip’ at the same time. According to TrendActive.com, there is a movement of “ Health to Happiness” where “...Health, wellness and happiness are converging into total wellbeing. People in the western industrialized world are demanding quality of life and a healthy work-life balance. People are trying to slow down their lives in a world where most things are going faster than ever.” TrendActive also reported that we are

CUSTOMER ANALYSIS now living in a “Visual Culture” where “their way of working with images also differs from older generations… [and] also highlights the social cultural structures behind this new visual culture”. Since discovering these findings, Rush decided that hikers are an additional target market segment. They can be any age, male or female, and upper middle class, as they are willing to spend money on quality hiking gear, including our backpacks. The final target segment for Rush are travelers. Those who go abroad to adventure and discover new places need a backpack that provides them with essential storage and protects their valuables. Patagonia and The North Face are known for providing their customers with quality luggage, and Rush plans on competing with these companies using their waterproof backpacks. The segment purchasing these travel backpacks are usually older customers in their thirties and beyond. They are both male and female, and are willing to spend upwards of $250 for their backpacks. They are the perfect fit for Rush backpacks, because they care about issues such as fair trade, and all of Rush’s products are fair trade. These three target markets all have great potential to be the primary target market for Rush products. Due to all of their need of a waterproof backpack, they will be great for sales. Rush employees are excited to market to these adventure seekers, hikers, travelers, and more.

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COMPETITION As Rush Outdoor Equipment, we are a company that creates waterproof backpacks for outdoorsmen—particularly hikers and watermen. Naturally, our company faces competitors who create similar products that attract similar audiences. Patagonia is a well established and environmentally conscious, high quality (long lasting), popular among college students and active types Patagonia offers quality products that last longer and provide better performance than that of their competitors because their products are functional and address environmental/ social concerns. Patagonia emphasizes a environmentally friendly attitude to customers. The “Don’t buy This Jacket” campaign consisted of Patagonia telling its consumers to look for a second hand jacket to minimize environmental impact of production. This actually brought sales in, furthering the connection with the target audience: environmentally conscious and upscale consumers. The products are quality buys that will last. They actually walk the walk, producing clothing from fair trade recyclables. A portion of their revenue goes to environmental causes and their head quarters run on solar power. Patagonia, though a very strong competitor in this industry, struggles with incorporating style in their designs. They are very focused on performance and durability; however, they have not succeeded well in becoming a standout competitor in the fashion aspect. North Face has several strengths that make them one of the leading brands of hiking, action sports and adventurists.

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A critical strength is seniority, as they have been established since 1966. Having the reputation of being a successful and trusted brand for 49 years puts the North Face at the top of the list in all things outdoorsy. Another strength is the athlete team that promotes their products. The team includes well-known athletes in snowboarding, climbing, running, endurance sports, skiing and other snow sports. Sponsorship is an amazing outlet to advertise to fans. Other strengths include high quality products, loyal customers, and their logo. Some of the North Face’s value propositions include services and features. One of their services is titled “Support the Cause”, in which customers can purchase product from a limited edition line that supports breast cancer organizations. Another feature includes the option of online custom orders, where customers can design their own jacket and logo. These value propositions suggest to customers that the North Face is not just a multi-million dollar company, but a company concerned about the needs of customers and society. One of the North Face’s strategies is the mission to be environmentally friendly, a strategy many companies advertise. However, unlike other companies North Face provides customers with the option to recycle at any of their outlets in return for a reward and the feeling of conserving what is left of nature. In this, they advertise their efforts of sustainability through their use of renewable energy and other industry leading strategies; including their Responsible Down Standard Program committed to improving animal welfare and traceability in the goose down and feather supply chain, Clothes the Loops Apparel and their footwear recycling program.

COMPETITION North Face, similar to Patagonia, also focuses more on the functionality, performance, and durability of their products without focusing much on the fashion and style. This becomes a problem for their customers who would like to feel comfortable with using the products while also looking good in them.

as the world around us evolves”, and that is exactly what they have accomplished in their 46 years in the business. They communicate with their audience not only through advertisements in magazines and the internet, but they also utilize their (surfer) athletes as a means of promoting their brand.

Quiksilver serves as a strong competitor against Rush because of their large business portfolio that spans more than just backpacks. Quiksilver is a company that our own (and their) target audience views as a one-stop-shop because they offer clothing, accessories, shoes, and gear for their outdoor activity of choice. Because they have existed for over 45 years, they are very experienced and already well-known in the segment in which Rush plans to target.

Quiksilver focuses on a male audience, providing products for men and boys only. Although they have a female counterpart, Roxy, to handle their customers of the other gender, this still separates their company-and target audience--down the middle.

As a company that focuses on “mountain and ocean lovers across the globe”, Quiksilver values extreme functionality while maintaining a high standard of adventurous style. They are also very conscious of the community, and they recognize that they have a responsibility to improving the lives of others locally and globally. In October 2004, the company began The Quiksilver Foundation, which is a nonprofit organization that encompasses all of the company’s endeavors to improve the environmental, educational, health and youth lives in surfing communities around the world. Quiksilver continues to be a strong competitor in their industry because they continue to adapt to the ever-changing trends and styles while staying true to their foundation as a brand for mountaineers and watermen. As stated in their mission, they hope to “inspire the youth and progress

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Sea to Summit is a small family owned company with sales worldwide. The company was started in Australia by Tim MacartneySnap. Their founder, Tim, has climbed Mt. Everest twice and is the first person to have climbed it from ‘sea to summit’. Their North American headquarters are in Boulder, Colorado. One of their biggest strengths is that their products are sold at the large and reputable retailer REI as well as a variety of online distributors. The employees within Sea to Summit are all outdoor enthusiasts with a passion for making innovative products that help fill the ‘voids’ in the current marketplace. The employees and their foundation as a company helps them gain reputation as a function oriented company. There is a great amount of attention to detail as their product width is not very large. Their backpacks specifically, are very technical and meet the rigid specifications of climbers, hikers, and other outdoor enthusiasts. Their knowledge of the outdoors helps them to create truly ingenious and well-made but affordable outdoor equipment.

COMPETITION Some of the ways that they have been able to create a sense of community is through brand ambassadors and consistent blog posts. They also support non-profits- a total of 4 different outdoor related organizations. Their blog serves as a way to answer customer questions about products. Lastly, Sea to Summit’s YouTube channel offers lots of product demonstrations and serves as another form of social media that reaches out to consumers. Some of the key weaknesses of Sea to Summit are that they are not very well known and their products are not heavily advertised. This means that they rely mainly on wordof-mouth and features in articles and magazines such as Backpacker magazine. Their backpacks specifically are not popular with young millennials because their price point is still fairly high and the pack has a very industrial look to it. The look of their ‘dry-bag’ backpack is very distinctive (it would stand out if used for everyday classes and school) with it’s roll-top closure and the colors are limited. All in all, the overall look of their fully waterproof backpacks is a weakness in comparison to the product that Rush has to offer. Our product will be the first to truly mesh function with style. This will be done by providing a backpack that meets both rigid technical requirements and have the looks of a standard school-ready backpack. Despite our competitive advantage, we have very little to show in order to gain a good following due to our lack of experience in the industry. All in all, analyzing our competitors helped give us a good understanding of the current marketplace surrounding our product. We now know what advantages other companies

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have over us as well as what we can offer to ‘one-up’ our competitors. Analyzing our competitors also gave us a good sense of the reality of the current market share of our competitors. Our most direct competitor would have to be Sea to Summit, as their product line meets the functionality requirements of the pack that we are designing. The company that is the most difficult to compete with would have to be Patagonia because they have a great loyal customer base and their standard ‘school’ backpacks are currently very popular and recognizable. As a brand new company, we have a lot of work to do with insuring that our brand image is up to par with all of our competitors.

ENVIRONMENTAL FACTORS As Rush debuts its first line of backpacks this year, it is important to consider the social, demographic, economic,and technological factors of 2015 that will affect the company. As a company that produces fair trade, completely waterproof merchandise, economic, demographic and social issues have the most influence. In 2006, despite the recession, “more than 140 million Americans made outdoor recreation a priority in their daily lives, proving it with their wallets by [spending] $646 billion”, (The State of The Outdoor Industry). For Rush, this is great news, as it proves that consumers are still willing to spend money on gear for sports whether the economy is great or failing. Also, Rush’s backpacks are designed to last for years, so consumers will not be expected to buy multiple backpacks within a short time. This is a second economic factor in favor of the company. According to Suburbanstats.org, the median age in San Diego is 33 and the population of people ages 15- 34 is 29.2%. Knowing that San Diego does have a fair amount of young people allows us to create our market and establish a brand in this county. San Diego is also known for fostering an active environment for multiple sports including surfing, sailing, hiking, running, diving, and more. Due to San Diego’s athletic spirit and its young median age, Rush is headquartered in a thriving area for its demographic target market. Vend University writes that “consumers these days are more drawn to retailers that invest in Corporate Social Responsibility (CSR) and a survey by Cone Communications and Echo Research uncovered that 87 percent of global consumers factor in CSR into

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their purchase decisions.” As a company that produces fair trade backpacks, Rush will excel in meeting conscious consumers’ needs ,and in turn allow them to see the operations that are taken place. This social factor will very positively support purchases of the backpacks. Vend University also reports that “ merchants who want to reach millennials will need to invest in mobile, as they are the largest group of smartphone owners (and adoption is still growing)...” . Since our target market constantly uses social media to post pictures and share their adventurous sporting events, we must become engaged with online activities such as e commerce and social media. This will be to our benefit because we were planning to use social media ,such as Instagram, to become our platform to guide potential shoppers to our store. Also in this digital age, technology is always with us. This limits its use and has proved to be a huge problem for people. We have become comfortable with the idea of constantly having our tech on hand because of how useful it has become in our lives. People are constantly searching now for ways to take their technology everywhere and that includes water. However we are still unable to take our technology everywhere due to most tech’s lack of water protection. This limits its use and has proved to be a huge problem. With this in mind, the idea of having a waterproof backpack that allows one to take their tech anywhere is a very desirable idea. After evaluating all factors involved in Rush’s business success, most factors were found to be positive and fostering for the new company. Although political factors are difficult to determine and the most

ENVIRONMENTAL FACTORS commonly negative, Rush will still benefit from Social, Economic, technological, and demographic factors. While keeping these influences in mind and developing quality backpacks, Rush will likely thrive with its upcoming launch.

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STRENGTHS Product Functionality and Quality Rush is strong in its product functionality and quality. Built for customers that participate in action sports and outdoor activities, Rush’s waterproof backpacks serve as a special function that most companies do not offer. Along with its valuable function is Rush’s noteworthy quality. Rush’s high quality build and sourcing ensures that it can compete with its few competitors that also sell waterproof backpacks. Knowledge of Target Market Rush has a great understanding of its target market. Rush aims to target an audience involved in action sports and outdoor adventures by way of employee to customer relationships. For example, Rush employs people that not only have knowledge about the fun and active lifestyle they promote, but also tend to live out such a lifestyle as well; much like Rush’s customers. This consensus between Rush’s employees and customers suggests that Rush is a brand loyal to its name and attitude. Further, it ensures buyers as well as potential buyers that Rush provides quality backpacks fit for their intentions: a product designed by adventurists and sold by adventurists to meet the needs of other adventurists.

Fair Trade Products The current market contains a trend of social consciousness amongst its customers. As there is a growth in demand and population size, there is also a growth in cruel manufacturing as it is easier, quicker and cheaper for the production of a company’s product. However, customers are becoming aware of the marginalized third-world factory workers and desire a product made on the basis of fair trade; trade in which fair prices are paid to producers in developing countries. As Rush’s backpacks are produced in a fair-trade environment, Rush can relate to demographic and furthermore help in making the world a better place.

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WEAKNESSES New Brand Rush needs to improve on becoming more known among its potential customers. Considering that Rush is a new company, its products, quality of products, and values are unknown to many. Rush must ensure popularity by way of marketing strategies. Low differentiation from competitors One of Rush’s weaknesses is appealing to the customers of its competitors as well as setting its name and products apart from it’s competitors. Because Rush is similar to its market’s leading brands, such as Patagonia and Quiksilver, it is hard for Rush to appeal to customers that have already established their loyalty to these existing companies. Small Width of Products Rush offers a very narrow range of products. As Rush is a new company specializing in waterproof backpacks, it is vulnerable to failure against leading competitors that also offer waterproof backpacks as well as a plethora of other products. Rush must acquire strong sellers and a reputation for quality products to make up for its limited sale opportunities.

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OPPORTUNITIES Customers Thirsty for a Product like Ours Because the current society demands higher technology in their everyday products, this will directly affect the demand for our companyâ&#x20AC;&#x2122;s products because people will search for ways to protect their equipment and other investments. Electronics and textbooks are not cheap; therefore, there will be an increased amount of people who are willing to purchase a supplementary product that will keep their belongings out of the water. Rush will satisfy these consumersâ&#x20AC;&#x2122; needs by providing them with a backpack that will keep their laptops, computers, and textbooks nice and dry. Competitors Not Aggressive in the Market of Waterproof Backpacks Because our competitors have not been too aggressive with advertising their waterproof backpacks, not many people are aware that waterproof backpacks already exist. As a new company, we will then advertise our product strategically to enter the quiet market of waterproof backpacks and take control of it. While we may not be the first company to introduce the concept of waterproof backpacks, we will be the company who popularizes this product with the combination of functionality and fashion. 14

Growing Social Media Culture An opportunity for Rush is to be able to make our appeals through the use of social media. One of the current market strategies is advertising through social media sites, including Instagram, Facebook, and Tumblr. Seeing that these sites are very popular with our target audience, a youth culture ranging from 15-25 years old, Rush has the opportunity to use an outlet that directly speaks to potential buyers.

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THREATS Cost-Conscious Customers A potential threat to our company could be cost-conscious consumers. Seeing that our product will be of higher price in terms of the average backpack, consumers that are not willing to pay the price could threaten Rushâ&#x20AC;&#x2122;s revenue. An additional threat to this idea is the difficulty that comes with convincing costconscious consumers to pay for our product, which begs the question, how do we convince them that our product is worth buying? Successful and Appropriate Mediums of Sale Our company must find an outlet that will allow us to successfully and appropriately sell our product, whether it be through online storefronts or physical storefronts. Do we approach third party entities that already sell to our target audience for wholesale, or should we become an exclusive brand with a strict single-channel online storefront?

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SEGMENTATION AND TARGETING STRATEGY Ideal Customer James is 25 years old and living in Portland, Oregon- in the Pacific Northwest. He is a few years out of college where he received a degree in Graphic Design. He is currently working for a small branding and consulting corporation and is living in a modestly sized condo in the Pearl District downtown. He goes grocery shopping at Whole Foods and Trader Joe’s, buys his home goods from the nearby City Target, and goes out to eat around 3 times a week with his buddies. He is a young professional with limited expenses because he is not married and does not make mortgage payments yet. This means that he has a comfortable sized amount of disposable income. He is someone who is willing to pay more money for a quality product and the image that comes along with it. A fun fact is that he is Instagram famous for all of the pictures that he takes while going on sweet trips around the world with his adventure-seeking friends. James drives a black 2012 Subaru Outback and loves to go on road trips to central Oregon and the Oregon Coast. He loves a good adventure. As someone who is constantly traveling and transporting his quality belongings around, he puts a lot of thought into what type of bag, duffel, or suitcase he is going to invest in. He currently owns a lot of Patagonia, Mountain Hardware, and Poler gear. He loves supporting local companies and organizations committed to social responsibility. James is our ideal customer and represents our target market. James, our ideal customer, falls into the bachelor life cycle stage because he is young, single, and not living at home. We are also targeting the newly married crowd

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of people. Our ideal customer is either male or female and living in either affluent suburban housing or high-status non-family areas. The generation that ‘James’ falls into is Generation Y, or the Millennials, because he was born between the years 1980 and 2000. We want to fill a gap in the marketplace by meeting the need for a backpack that is fully waterproof while also highly functional. This is in the sense that it can be used for day to day activities. It is also a priority that all of our products are ethically sourced and produced. Outdoorsy people who live in a rainy climate, or simply love water sports and those kinds of activities, will appreciate all of the features that this backpack has to offer. Also, with our unique products, we will be able to distinguish ourselves from other brands and open up our market to those who love social responsibility and fashion. We are going to use value-based pricing because it will serve as an indicator of the quality of our items and peak customer curiosity, just like Burt’s Bees products. We want our potential customers to understand our products’ amazing waterproof technologies. We believe that in this meeting of form and fashion will create a strongly positive reputation as a high quality brand. By utilizing the value-based pricing model, we will be able to attract our ideal customer. Positioning Currently, the action sportswear industry does not have great competition in the waterproof backpack market. Although there are a few styles available, they are not well known and are limited in selection. Rush, however, offers a wide variety of backpacks and in the near future, other products with

SEGMENTATION AND TARGETING STRATEGY intelligent design. The top priority of Rush is to provide smart, effective, and elegant design that will provide customers with the needs they have in a backpack. Since design quality ranks high on the company’s values, Rush targets consumers through value proposition. While other companies may offer waterproof backpacks, none offer them in the same range of designs and styles. Rush is also a company that guarantees product warranties, and prides itself in free-trade, recycled materials. When purchasing, customers receive the full mix of benefits in buying their product. With these aspects of our company and our products, our customers view us as a brand of functional innovation and fashionable inspiration. In their minds, our company is classified as a luxury brand that delivers high-quality and high-performance products. General objectives Market growth- One of Rush’s strategies is market growth by way of market penetration. Market penetration is the act of penetrating a market in which current or similar products already exist with the hopes of gaining competitors customers. Considering that Rush is a new brand that sells products similar to its leading competitors, market penetration is an ideal strategy to use in Rush’s beginning stages. By penetrating the same target market as leading brands, Rush can promote and sell a stronger version of waterproof backpacks to its competitors customers. Finding new markets- A second form of general strategy objective is finding new markets. Both Rush and its competitors target the same market for waterproof backpacks: young adventure seekers. If Rush could sell to market segments not previously

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targeted, such as people who do not live in rural areas and older aged demographics, Rush could expand its sales and promotion. Financial objectives Sales growth- On a financial basis, Rush finds that sales growth is a crucial objective to achieve. Sales growth is the average sales volume of a company’s product and how much it has grown. Considering the idea of sales growth, it is then clear that to achieve sales growth, Rush must first achieve a significant increase in average sales volume. By increasing the average sales volume through marketing techniques, Rush can increase the number of backpacks sold in a given amount of time. Channel sales- While sales growth focuses on selling to one market segment using one technique, channel sales uses a more versatile approach to sell to several market segments thus increasing the average volume of goods sold. As the channel sales technique sells products through a company’s store and website as well as through unassociated vendors including retail stores, resellers that bundle products, and other distributors, Rush can further expand its sales to outer locations thus selling product to new target markets ultimately increasing average volume sales. Promotional objectives Brand awareness- As a new company, Rush believes that creating brand awareness is a significant objective to set, achieve, and maintain. Brand awareness is the extent to which customers feel familiar and accustomed to a company and its brands. If Rush can create brand awareness, it can create popularity and loyal customers. Rush can achieve this in a number of ways including advertising, guerrilla marketing, extreme specialization, and more.

PRODUCT AND SERVICES Our company, Rush, offers products that are geared toward adventurers and excitementseekers. Our primary product is the waterproof backpack which features a sleek and elegant design combined with highquality functionality. The innovations that are exclusive to our company will introduce the world to the revolutionary idea that they can indulge in their risky activities without worrying about the water damage to their beloved electronics and other belongings. An additional value-added benefit of purchasing our backpack is that it comes with the confidence of Rushâ&#x20AC;&#x2122;s repair program. The repair program offers customers support from Rush when a backpack is in need of fixing. With a copy of the receipt, customers can send in their backpack and get it repaired free of cost. We understand that while our mission is to provide people with the highest quality products, the activities that our backpacks are used for can put the bag at risk. With our repair program, customers can use their backpack for a longer amount of time and we can save further resources from being used. This lifetime warranty on the backpacks is something that gives the customers reassurance in their purchase. Along with repairing the bags, is assistance in recycling a bag beyond repair. When a backpack is beyond repair, a customer can send in their product and we will recycle it in exchange for store credit/discounts. Rushâ&#x20AC;&#x2122;s repair program fosters a sustainable life in a world where sustainability is crucial to saving the earth. We are a new brand and with that we will only be able to offer very limited options for our backpacks. We will be able to sell only waterproof, stylish backpacks with a few variety of colors. For the first season of backpacks, Rush will provide three styles of waterproof backpacks. Each of the backpacks will be in different sizes: one small backpack (25 liters), one medium (28 liters), and one

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large (30 liters). Each of the sizes are made from 100% hydrophobic fabric. They feature two straps with a top clip and one small external, front pocket. All zippers on the backpacks are waterproof so not a single drop of water can enter. Also, the various backpack sizes come with different pocket options on the inside. The largest backpack has the most internal organization, while the smallest style features only a single internal compartment. Finally, all backpacks come in four different color combinations ranging from neutral black to prints including tie dye. While options are more limited in this first season, they will expand in future years. Additionally, there are no necessary ancillary services. The backpacks do not include anything that involves power or electricity. This is an advantage to customers, because they do not need to spend money on batteries or electricity to use our product. Packaging should be minimal in order to promote the green standards of the company. A simple tag in one location of the bag will be used. This represents authenticity and adds to the overall branding of the backpack. In addition, when shipped to stores for resale, backpacks will be wrapped together and protected by one big plastic covering rather than wrapped individually. This will prevent unnecessary waste, especially when retailers just throw the plastic coverings away. This is important to show due to the long lifespan of our quality backpacks, along with our recycling program. The idea is to take tip from Patagonia and encourage the purchase of used products in order to cut down on production and save resources on this Earth. The backpacks will be sold as individual products and Rush sales associates are trained to know about our products. They are well informed with backpack design features, warranties, and technical uses. It is important that they are trained so that they can let customers know about our products.

FEATURES • Removable Internal Dry Bag (to keep your wet and dirty goods separate from dry and clean goods) • Side Compression Straps • Removable Sternum Strap with Whistle Buckle • Removable Multi Point Adjustable Waist Belt • Shaped Shoulder Straps with Load Lifters (for Comfort and Stability Under Heavy Loads) • YKK Waterproof Zippers • Premium Leather Trims • Aluminum Strap Retention Hardware • Molle System for Multiple Lash Points • Custom Molded EVA Foam Back Panels • Full Internal Back Panel Frame (for load support) • Top Loading Roll-top (for various sized gear) 19

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PRICING PLAN As a new company, Rush has yet to familiarize the consumers with their brand and their products. Rush plans on achieving this by using the market-skimming strategy, which will set the company on a high platform because customers will associate high-end prices with Rushâ&#x20AC;&#x2122;s high-end quality. This strategy is most appropriate for Rush as opposed to market-penetration pricing because the companyâ&#x20AC;&#x2122;s objective is to provide durable, high-performing products that will inevitably cost more to produce. With a higher price floor, the company has to set a price for their waterproof backpacks that will account for the cost of goods sold, while also maintaining profitability. As Rush continues to add products to the product line, it plans to implement several product-bundle options that are suitable for particular activities. For example, Rush hopes to develop the hiking segment by creating accessories to supplement waterproof backpacks: hiking clips, canteens that are made to fit perfectly in a special compartment, and detachable emergency kits. Rush customers will have the option to buy these supplementary products together in one bundle for a slightly reduced price. The price for the product bundle will be cheaper than if the customer were to buy each item individually, even if the value is equal. Rush only offers volume discounts to store buyers on the wholesale level. When a store purchases a certain number of units and pays their bill within 15 days of receiving their shipment, the company will offer a 2% discount on the merchandise. However, general consumers of Rush will not be offered volume discounts. The company will exercise this strategy because the

RUSH

marketing plan

purpose of our product is to provide lasting quality, rather than promoting frequent replacements. The company aims to make sure that customers do not need to purchase more than one backpack at a time because backpack at a time should be adequate for the consumer. Rush will rarely offer discounts on the products themselves, since the backpacks are going to be priced using a marketskimming strategy. This means that along with the image of a high-quality product comes a higher price point. If Rush offers too many discounts the company may give off the impression that it is a discount retailer company. There will be the occasional sitewide sale at the end of each retail season. This would be anywhere from 10% to 20% off of full price items for a limited time of 2 to 3 days. By setting the time frame of these sales to such a short period, the customers will be attracted to the company because of the sense of urgency to buy, and they will still perceive it as such an exclusive, luxurious brand that limits their deals. To encourage customer loyalty, Rush will emphasize the lifetime warranties of their products. Biweekly emails will be sent to reach out to the consumers to inform them of these seasonal sales. As a possibility for the future growth of Rush, a club membership may be offered to customers, which would allow them to receive free shipping on all orders along with additional perks. The membership would be free of cost, with the requirement of an email sign up. Customer value pricing is the main tactic for Rush. The company provides products of utmost quality. Consumers are not looking for bargain backpacks when they purchase Rush backpacks. They are instead satisfied

PRICING PLAN with the supreme value and the quality of the products. Customers know they are paying more for fair-trade and supreme quality fabrics. Since buyers perceive these values as crucial, they will buy the products. With these variables considered, our original waterproof backpack will be sold at a price of $189.99. Over time, the range of pricing for Rush items will change. Rush hopes to expand its collection of backpacks and gear throughout the years. This means the addition of smaller backpacks that cost less (around $99.99), and higher tech backpacks that will cost more (around $229.99-$249.99).

RUSH

marketing plan

DISTRIBUTION PLAN Rush’s main strategy for its distribution plan is a multichannel distribution plan, that is, a system that focuses on reaching several demographics through different outlets. The multi-channel distribution system creates quick revenue and appeals to loyal customers and potential customers. Through the multichannel distribution system, Rush plans on using three main outlets to sell product: online, in already established retail stores, and in standalone brick and mortar Rush stores. The focus in the beginning will be to push sales through Rush’s online store with the help of strong social media and marketing initiatives. Also, by cutting out the middlemen, Rush will be able to keeps costs down. While Rush’s own website will be the primary focus, the backpacks will also be sold in mainstream retailers and eventually Rush will have a brick and mortar flagship store of their own. The goal is to first establish the online store and be in business for at least 6 months and then set out to make the product available in other retailers. Both the big chain retailers and smaller outdoor shops will all have to go through the same approval process in order to carry our products. We will make sure that the company’s mottos and reputations are up to par with the standards that we have already set in place. For the more logistical side of our distribution plan, we are going to use a factory that is based in the Philippines. Dong-In Mountaineering Inst. is a factory in Mariveles, Batan, Philippines, that specializes in sewing packs and travel gear. This factory pays its employees fair wages and complies with our high ethical standards. The products will be shipped from the factory

RUSH

marketing plan

in the Philippines to our distribution center in Reno, Nevada. Nevada is a great state to hold inventory in because there is no inventory tax and no corporate income tax, among other things, which all make it a very cost efficient choice. This distribution center will then ship out product to stores and directly to customers. The market intermediary for Rush is selective distribution. Rush’s products are not necessary for every consumer or as an everyday purchase. Since the waterproof backpacks are marketed towards a specific adventurous consumer they will only be sold through retailers who are geared for the outdoors. Rush wants consumers to have a unique shopping experience, so we will do everything in our power to make their shopping experience enjoyable. The backpacks will appear to be fairly exclusive as they are not sold in every possible retail outlet. To our consumers, a Rush backpack is an investment purchase that is expected to last a long time. This is why selective distribution is the best option for Rush. One key thing to note is that Rush products will not be distributed to every REI or Sport Chalet store, as the buyers for these retailers may decide that the product may only sell well in specific regions within the U.S. This means that there may be more of the waterproof backpacks in stores that are located in the rainy regions such as the Pacific Northwest rather than in desert regions such as Arizona. Rush backpacks are a specialized product for a specific market and our distribution choices reflect that. The method of physically distributing our product depends on the particular channel. When we are shipping goods to the selected stores, we will have a truck

DISTRIBUTION PLAN shipment transport backpacks out about once a month. When individual sales are made online we will ship consumers the Rush products by mail. This distribution will be carried out by Rush employees until a jump in sales requires Rush to contract out and use an outside company to help with shipping and processing. This distribution center in Reno, Nevada will be where Rush houses and processes all the product before it is sent via mail or truck.

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marketing plan

PROMOTION PLAN Rush is involved in an industry that sells a common product with a wide variety, so it would only make sense for the company to utilize a push strategy for their marketing campaign. The backpack industry already has a large number of companies so it is necessary to be very competitive and aggressive in the marketing aspect in order to survive in the marketplace. Currently, there is not an apparent demand for waterproof backpacks because the target audience generally does not notice the need for a waterproof backpack until they are faced with a critical situation. For example, when their backpack, which is filled with expensive electronics, falls in water. Rush’s goal, then, is to change the perception of customers concerning this demand-- to convince consumers that there is a strong need to get a waterproof backpack, and to get a hold of one before they regret it. This will only be accomplished when customers are attracted to the Rush company with the use of a push marketing strategy. This new company will utilize an Integrated Marketing Communication system to reach the target audience through the five elements of the promotional mix-advertising, sales promotion, personal selling, public relations, and direct marketing). Rush’s multiple outlets of communication will send the message that the company is bold and adventurous, while also building the brand’s reputation of providing products that are reliable in performance and style. For example, Rush will run advertisements with campers caught in the rain, only saving their valuables because of their waterproof Rush backpacks. The current society is heavily reliant on the internet, so the company will primarily advertise with banners that appear on

RUSH

marketing plan

popular online websites, such as Facebook, Instagram, and Twitter. Additionally, Rush will purchase advertisement space in magazines like Outside and Surfer, who share the same target audience. Through advertising, Rush will convince consumers that there is a need for waterproof backpacks. Online promotion will play a very big influence of the number of customers that will be attracted to the company. The foundation of the company will be built on the official online site to position Rush in the mind of the customers through this medium. Building the company brand would be highly effective online because people tend to be very connected to the internet in one way or another, and also it will be way less expensive to use the internet since Rush is a new company. The key to bringing in a low cost level of marketing upon start up is to relate to the target audience in such a way that promotes brand loyalty. Social media plays a huge role in this, allowing you to create a “tribe” of backpack users who promote the product by sharing their adventures in which they feature their respective Rush bag. This is key in building customer trust while building a brand identity among a community. Influential social media figures can be 24 targeted, and offered free products with social media mentions (called “shutouts”, in the online community) in return. This strategy of selling the lifestyle can be applied across all forms of promotion, but social media is a good place to start. One of Rush’s goals is to get into the following magazines: Outside, National Geographic, Travel and Leisure, Backpacker, and Surfer. While paying for a magazine advertisement can be very expensive and not

PROMOTION PLAN necessarily the best option for a company that is in its introductory stage, Rush will try to get featured in these magazines in a ‘free’ way. This means that the company will send products to the companies along with other promotional material with the hope of getting featured on one of their ‘gear lists’ or in an ‘up and coming company’ article. Rush will also have a booth at the popular Snowball Music Festival, which takes place on the ski slopes in Vail, Colorado. The music festival will be a great way to get the attention of people in Rush’s target market, as they are most likely action sport enthusiasts that could definitely utilize the waterproof functionality of the backpacks while skiing or snowboarding on the mountains. The company’s main objective through sales promotion is to turn first-time and shortterm customers into returning, devoted customers. Rush guarantees top quality with their waterproof backpacks, and this will get customers to buy again. Customers will be introduced to our product by being incentive to use coupons to buy Rush products. These coupons will be offered to the general public at the start of each new season, while the dedicated, subscribing customers will receive coupons and offers every two months. By offering a discount of 15% off for first-time customers and free returns, the company allows customers a chance to get to know the product. They also see it as less of a risk when contemplating on buying Rush’s new product. The company’s secondary main element of sales promotion is personnel sponsoring. Since Rush is a brand geared toward athletic, adventurous consumers, a few popular outdoor enthusiasts will be selected and sponsored to represent and promote Rush products.

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marketing plan

The online personas who will be a good fit for a sponsorship with Rush include: David Doubilet, a highly-experienced underwater photographer for National Geographic (@ daviddoubilet on Instagram); Ben Saunders, known for his record of taking the longest one-man Arctic journey by a Briton (@ polarben on Instagram); and Justin Lucas, who is a professional fisherman and outdoor enthusiast (@justinlucasbass on Instagram. By following these sponsored people on social media and meeting them at Rush events, consumers will see the backpacks and purchase them because they trust those names that are sponsored by Rush. Personal selling will further carry out the attitude of Rush, as the employees themselves embody a fun and adventurous lifestyle and use the Rush products while they do so. Rush will not initially have their own stand-alone stores, therefore the company will not have any sales associates to make the direct connections with the customers. Rush will instead encourage the designers, management, manufacturers, and other employees to personally use the Rush products and utilize testimonials and word-of-mouth strategies to attract sales. By doing so, the Rush team will get hands-on experience with using the products and will be familiarized with its features. Additionally, they will communicate with people in their inner circle and share how great these products are, and it will be even more enticing because the information is coming from a person whose opinion they trust. With offers of discounts to the employees, this will also contribute to our public relations as it shows that Rush truly does believe in and exercises the lifestyle being promoted, and that the employees are valued as much as the customers are.

PROMOTION PLAN By combining these strategies into the companyâ&#x20AC;&#x2122;s promotion plan, Rush will be able to promote the lifestyles associated with the product more than the bag itself. This relates to the companyâ&#x20AC;&#x2122;s main goal, which is to change the perception of the customers concerning the demand for such a bag. By seeing relatable situations in which the high functionality of the product is needed, consumers will understand the necessity for such a product to match their lifestyle.

RUSH

marketing plan

MEASURES, EVALUATION, AND BUDGET Rush was founded in September of 2015 through the partnership of Jazmine Brown, Makoa Ho, Elle Merrill, Hannah Sippel, Armaine Tomacder, and Tom Williams. The initial monetary backing of the company came from the six founders and two venture capital investors, who contribute a collective total of $1 million. In addition to the $250,000 set aside for the manufacturing, administrative, and other fixed costs, we also plan on allocating a total of $750,000 for our marketing campaign. For the $750,000 marketing budget, the funds will be distributed accordingly for the advertisements, website, sponsored athletes, and sales promotions and sample products. A total of $490,000 will be contributed to our advertising campaigns, which covers print advertisements, online advertisements, and the marketing firm that we are going to partner with. An additional $250,000 will be used for the creation and maintenance of our online website.

collecting feedback will be implemented. For the online customers, they will be emailed surveys of satisfaction after they receive their order. These surveys will include their level of satisfaction with timeliness of delivery, customer expectations, and method of order and payment. The survey will also ask the customer about how they heard about Rush, how frequently they shop with the brand, and how likely they would refer others to Rush. The company would also track the cash and inventory flow of each targeted region every month to evaluate the effectiveness of our promotional efforts. The higher the shelf life of our backpacks, the slower the inventory flow; by knowing this, the company can tailor their regional marketing strategy fit the region’s particular needs. For example, if one region is lacking in sales, Rush will boost their promotions in that area to make sure that the consumers are aware of the company’s existence.

Rush plans on promoting the products by distributing samples and trial offers to potential customers, which will use up $10,000 of the budget. There will be a total of 10 sponsored athletes who will annually receive compensated merchandise with a MSRP of $1,000. The merchandise will be split up into 4 shipments per year, one at the beginning of each season. These shipments will be valued at $250 each and will include one backpack (in the season’s latest color and style) and other branded merchandise. The fixed and variable costs for each backpack will come out to be $71.60 (with at 2.5x markup for a MSRP of $189 and free shipping). The total cost to the company for these promotional goods will be $10,000 annually.

Rush’s expected revenue is $1,350,000 for the first fiscal year. Expected expenses are set at $1,000,000 ($750,000 of which is marketing related expenses). Our projected profit is $350,000 for 2017.

To measure the success and satisfaction of Rush’s financial efforts, different channels for

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marketing plan

IDENTITY BASICS LOGOTYPE

COLOR SCHEME

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RUSH 28 MARK

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marketing plan

WORKS CITED “Select Your Location.” Sea to Summit. N.p., n.d. Web. 07 Dec. 2015. “Sea Stash Sealable Wetsuit Dry Bag.” EQYBA00031. N.p., n.d. Web. 07 Dec. 2015. “Patagonia Stormfront® Waterproof Roll Top Pack 30L.” Patagonia Stormfront® Waterproof Roll Top Pack 30L. N.p., n.d. Web. 07 Dec. 2015. “WATERPROOF DAYPACK | United States.” United States. N.p., n.d. Web. 07 Dec. 2015. Current San Diego, California Population, Demographics and stats in 2014, 2015. (n.d.). Retrieved October 8, 2015 Vend - Point of sale you’ll love to use. (n.d.). Retrieved October 10, 2015. The State of The Outdoor Industry. (n.d.). Retrieved October 10, 2015. “The Bizarre Scarcity of Waterproof Hiking Backpacks.” Snarky Nomad. N.p., 17 Jan. 2014. Web. 26 Sept. 2015. Lamoureux, Kristen, Ph.D, Philippe Duverger, Ph.D, Natasha Martin, Christina Heyniger, and Paige Schneider, Ph.D. Adventure Tourism Marketing Report. Adventure TravelBiz. George Washington University, Adventure Travel Trade, Association, Xola Consulting, Aug. 2010. Web. 25 Sept. 2015.

TRENDSACTIVE – International Trend Interpretation Agency. (n.d.). Retrieved September 26, 2015.

RUSH

marketing plan