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       SHIPWRECKED DECKS (SWD)
                 Cruise OnBoard

                  Christopher J. Conery
                               Founder

                     c.coney@gmail.com
        www.wix.com/shipwreckeddecks/1
                          (514) 261-6399
Christopher J. Conery
                                                                                                 Founder
	
                                                                       c.coney@gmail.com
	
                                                          www.wix.com/shipwreckeddecks/1
                                                                             (514) 261-6399
	
  
Executive Summary
SWD manufactures and distributes custom longboards (elongated skateboard, with large
wheels and loose trucks, meant to simulate surfing on tarmac) to customers in the Greater
Toronto Area (GTA) and in Montreal; two urban Canadian cities with a high concentration of
consumers within the target market. As a provider of extreme sport utilities, we strive for
more than a quality product, we strive to integrate our band into extreme sport culture. Our
competitive edge is simple; our product becomes more than a longboard, rather a piece of
art that enhances the ride and lifestyle. How do we do this? It is our integrated production
model labeled TEACH:
       · Technical Specifications: customer chooses wood, wheels, trucks.
       · Explanation: Customer graphically, orally, or textually explains vision.
       · Art: artwork for grip tape and deck is processed in COREL DRAW by artist
       · Creation: Outsourced products are processed through Laser Engraver
       · Help: Customer support; not only for product, but for lifestyle. Website helps
       customers find: best spots to ʻshredʼ, fresh music, other riders, cultural news/events;
       and blog.
This gives SWD a competitive edge in three ways: (1) customization, (2) unique deck art and
tape designs, and (3) sustained interaction for a lifestyle brand.

To continue, our product, first and foremost, satisfies the thrill-seeking needs of our
customers. From their it satisfies transportation, leisurely, athletic/fitness, and specific to
SWD, creative, individual, and expressive needs of our clients. Our implementation plan,
detailed in this document, requires start-up funds for production capital and supplies,
promotion, and administration. Phase one focuses on market penetration; phase two,
expansion of distribution channels, and three, increased product lines.




	
  
	
  
	
  
                                                                                                            2
Christopher J. Conery
                                                                    Founder
	
                                                       c.coney@gmail.com
	
                                          www.wix.com/shipwreckeddecks/1
                                                             (514) 261-6399
	
  




Table of Contents



Executive Summary                                                         2
1. Mission                                                                4
2. Management Team                                                        5
3. Consumer Profile - Market Segmentation                                 6
4. Environmental Analysis                                                 8
   A. Strengths                                                           8
   B. Weaknesses                                                          8
   C. Opportunities                                                       9
   D. Threats                                                             9
5. Marketing Plan                                                       10
   A. Product                                                           10
   B. Distribution                                                      11
   C. Pricing                                                           13
   D. Promotion                                                         13
6. Quantitative Analysis                                                14
7. Implementation Strategy                                              14




I. Appendix A-1                                                         16
II. Appendix A-2                                                        17
III. Appendix B-1                                                       18
IV. Appendix B-2                                                        20
V. Appendix C-1                                                         21
VI. Appendix C-2                                                        22
ViI. Appendix D-1                                                       24
VIiI. Appendix D-2                                                      25




	
  
	
  
	
  
                                                                               3
Christopher J. Conery
                                                                                                 Founder
	
                                                                                    c.coney@gmail.com
	
                                                                       www.wix.com/shipwreckeddecks/1
                                                                                          (514) 261-6399
	
  

	
  
	
  
	
  
	
  
	
  


1. Mission
Our mission is to customize and distribute longboards to our target market segments and
create a network through which the SWD brand be embedded into extreme sport culture. To
dedicate ourselves to the SWD standard, SIQ [sik], working towards extended customer
service, innovation, and quality product.

       We have set three initiatives through which our mission can be accomplished. In order
become embedded into extreme sport culture, SWD must maintain a (1) position selling
more than a product through added utility in service. There are two measures for
achievement; (A) establish TEACH customization method, and (B) implement extended
customer loyalty program through ‘HELP’ portal (online customer service feature of TEACH).

       The second initiative involves (2) implementing strategic supply infrastructure by: (A)
establish industrial supplier and increase buying power, and (B) invest in capital for product
customization; acquire laser engraver. This initiative leads towards delivering quality,
consistent, and fully customized longboards.

       Third, (3) raise awareness and create customer base to begin distribution. To prepare
the market for a March 2012 entry date, we will use social medias, Facebook and Twitter to
(A) raise pre-season awareness, (B) direct interest towards shipwreckeddecks.com, and (C)
conduct ongoing market research for brand development/integration.




                           Refer to appendix D-1 for more information on the status of each objective.
	
  
	
  
	
  
                                                                                                            4
Christopher J. Conery
                                                                                               Founder
	
                                                                        c.coney@gmail.com
	
                                                           www.wix.com/shipwreckeddecks/1
                                                                              (514) 261-6399
	
  
2. Management Team
      Christopher John Conery is the sole-proprietor of SWD; single ownership allows
consistency, fast decision-making, and accountability. Conery is responsible for managing
and coordinating different factors of production, marketing, and development, to work
towards company objectives.



       Christopher John Conery (June 17, 1992) is a young entrepreneur, student, and
extreme sport goer. Conery previously founded DogPound (2005), a hot dog stand, Retro-
Pops (2006), a candy manufacturer, Sawmill Valley Landscaping (2007), and Knockout
Buttons (2009). Currently, Conery is a business undergraduate student in the Desautels
Faculty of Management at McGill University. Conery discovered his passion for the extreme
sport lifestyle in 2000, when he began mountain biking the biggest mountains in Eastern
Canada. His passion for extreme sports, and presence on the mountain led to a
snowboarding obsession by the age of twelve. His conformation to board sports, led Conery
to skateboarding. Realizing the similarities between longboarding and snowboarding, he
quickly abandoned the short-board, for the longboard. His passion for longboarding led to
the establishment of SWD in 2011, an idea that was born four years earlier in 2007.



       Conery is a dominantly right brain thinker. His intuition, creativity, and view of the big
picture allow him to think on his toes, and come up with fresh innovative ways to connect
SWD to the extreme lifestyle. He is able to come up with creative solutions to industry,
company, and customer problems quickly. Conery is strong at connecting with customers,
and corporate partners, which has created a strong network for SWD. He is majoring in
marketing and has innovative ideas for promoting his brand. His attention to detail ensures
that nothing is overlooked in production and can confidently guarantee his products.
Coneryʼs confidence distracts his young age; he is not intimidated by any situation, and
looks at them as opportunities. Time-management and organization skills are important for
Coneryʼs ability to balance his education, business, extra-curricular activities, and social life.


	
  
	
  
	
  
                                                                                                          5
Christopher J. Conery
                                                                                                                                                                                                                                                Founder
	
                                                                           c.coney@gmail.com
	
                                                              www.wix.com/shipwreckeddecks/1
                                                                                 (514) 261-6399
	
  
3. Consumer Profile - Market Segmentation
Three market segments have emerged as key target markets; (1) Grom, (2) Stud, and (3)
Curve. The following is a list of characteristics describing the Grom:


                           •                          Male, between the ages 12 and 18; he attends high-school.
                           •                          Lives in urban settings with parents (ex. GTA, Montreal).
                           •                          Minimal/no income; the ʻGromʼ is the customer, his parents, the consumer.
                           •                          In the GTA, this segment is estimated to 172 5001, in Montreal, 106 0002.


                           The Grom’s need is in love/belonging, SWD welcomes the Grom into adolescenthood
and unites him with the Stud (aspiring mentor they long to become). More; it allows them to
seek thrill and rebel against parents/society that they have trouble connecting to at their
tender age.


                           The following list describes the characteristics of segment 2, referred to as the Stud:
                           •                          Male, 19-24 years; enrolled in post-secondary education or has a low-income job.
                           •                          Living in urban areas, without parents, has little disposable income as consumer.
                           •                          In the GTA, this segment is estimated at 195 000 3 ; Montreal, 66 6064 (excludes
                                                      temporary residents attending McGill University, Concordia, UQAM, etc.; the actual
                                                      market size is estimated to be over 100 000).


                           The Stud’s need is unique from that of the Grom (although both satisfy the need for thrill),
the Stud’s need is in self-actualization. SWD allows the Stud to express himself through his
longboard and provides an activity through which he can ponder morality and spontaneity.




	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1
  ,3 Statistics Canada, Consensus 2006. www.toronto.ca/invest-in-toronto
2
  ,4 Statistics Canada. Consensus 2006. www.stat.gouv.qc.cam
2
   http://www.usatoday.com/sports/2006-06-20-longboarding_x.htm



	
  
	
  
	
  
                                                                                                                                                                                                                                                           6
Christopher J. Conery
                                                                                                                                                                                                                                                           Founder
	
                                                                                                                                                                                                                                              c.coney@gmail.com
	
                                                                                                                                                                                                                                 www.wix.com/shipwreckeddecks/1
                                                                                                                                                                                                                                                    (514) 261-6399
	
  
                           Segment 3, titled the Curve, is our female segment between the ages 15-22. We have
kept the female market separate from the male and less classified due to their lesser
presence in the industry; however, we understand that this segment’s interest in the extreme
lifestyle is growing, and that it is important to develop relationships with this market now to
gain loyalty in the future. USAtoday says growth rates of females in the longboarding sector
are 2% higher than males5.


                           The customizability of SWD boards liberates female riders to express themselves through
their board in an industry centered around males. The Curve introduces a new need and
requires a unique position of SWD. Through extreme culture, the Curve satisfies esteem
needs; SWD provides confidence, achievement, respect, and empowerment.


                           Along with our customizable product and unique artistic stylings, our integrated website
will connect SWD to extreme culture, and will establish customer loyalty, growth, and
excitement. Moreover, by involvement in cultural events, consumers get to know SWD
personally, and get to see our artwork and board quality. Also because our product is also a
unique piece of art, it keeps customers open to multiple purchases.




	
  
	
  
	
  



	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  
	
  
	
  
                                                                                                                                                                                                                                                                      7
Christopher J. Conery
                                                                                             Founder
	
                                                                                c.coney@gmail.com
	
                                                                   www.wix.com/shipwreckeddecks/1
                                                                                      (514) 261-6399
	
  
4. Environmental Analysis

             A. Strengths
	
  
       SWD is strong in: (1) production capability, (2) product width, (3) distribution, and (4)
power over customers. (1) Buying materials wholesale reduces variable costs, and the need
for capital in fixed costs (minimizing investment risk), and also displaces legal accountability
for injuries and damaged goods. Outsourcing also allows increased supply without
employing more staff and capital investments. To continue, (2) multiple product lines,
separated and justified through strategic pricing, captures riders at any skill level:
competitive to recreational. Further, (3) the online store attracts customers through its
interactive lifestyle space and reduces storefront costs; it is enhanced by targeted segments
time spent online. Also, being located on the McGill campus allows for fast penetration of
Montreal student market through trendsetters enrolled at McGill. Finally, (4) the SWD
competitive advantage displaces buyer power through product differentiation, i.e.
customization and grip tape designs, which also entices multiple purchases.



             B. Weaknesses
                	
  
       Although weaknesses can be found through a company analysis of SWD, they can be
turned into strengths through simple administration. (1) Creative spirits of artists cannot be
consistently timely; however, motivations from customers can foster artistic capital. (2)
Without market share at start-up, there is an obligation for SWD to gain customer loyalty
through engaging with extreme culture (integration in lifestyle events). (3) The on-line store
presents opportunity for international market, but it cannot be reached because of shipping
incapabilities; there is, however, a potential to test foreign markets through the online store
in the future to maintain an economy of scale. (4) Reliance on suppliers removes control over
deadlines; however, suppliers are made accountable through contingencies.




	
  
	
  
	
  
                                                                                                        8
Christopher J. Conery
                                                                                                                                                                                                                                                           Founder
	
                                                                                                                                                                                                                                              c.coney@gmail.com
	
                                                                                                                                                                                                                                 www.wix.com/shipwreckeddecks/1
                                                                                                                                                                                                                                                    (514) 261-6399
	
  
                                                            C. Opportunities
                                                               	
  
                                                      The current industry presents an opportune climate for SWD. (1) The socio-political
movement towards environmental sustainability and alternative transportation offers a
potential new market for SWD. Also raising gas and oil prices powers the search for
alternative transportation for economic reasons. USA Today reports the latest trend in
transportation amongst adults is longboarding. 85% of skateboarders leave the sport by the
time they are 18, 80% of which return to recreational and transportation-based
longboarding6. (2) Municipalities in the GTA and Montreal area are funding renovations of
skate parks; as well (3) the rejuvenation of the Toronto boardwalk and Montreal warf,
presents a new space to longboard that is similar to California, a novelty that attracted new
athletes in California and potentially will do the same in Canada. (4) Socio-cultural
opportunities are seen through local industry/target market events that attract media
attention (Wakestok, SnowJam, etc.). (5) Increasing online interactions offers an opportunity
for the SWD online store. (6) There is a potential opportunity to innovate by partnering with
SlowBros; a company on the verge of developing a patented longboard disc break. The
owner is a student at McGill politically tied to Conery.

                                                           D. Threats
                                                               	
  
                                                      SWD is threatened by (1) direct competition including: Sector 9 (cheap), Loaded
(prestigious), Landyatz (solely slalom decks), Arbor (focus on sustainability), and Original
(high value). (2) Substitutes include bikes, rollerblades, and skateboards; however, extreme
sport enthusiasts are not deviated from one discipline for another. (3) Political concerns are
municipal regulations and by-laws regarding skateboarding. The requirement to ride on the
road, for example, may present a threat to the Grom segment; however, similar regulations
on biking, did not affect young bikers. (4) Socio-cultural concerns in raising interests in video
games displaces the desire for physical activity. However, government advertising to
promote physical activity will work in SWD’s favor. (5) Technology poses a threat in SWDs
inability to innovate longboard technologies because of a reliance on suppliers.

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
6
       http://www.usatoday.com/sports/2006-06-20-longboarding_x.htm
	
  
	
  
	
  
                                                                                                                                                                                                                                                                      9
Christopher J. Conery
                                                                                              Founder
	
                                                                                 c.coney@gmail.com
	
                                                                    www.wix.com/shipwreckeddecks/1
                                                                                       (514) 261-6399
	
  
5. Marketing Plan

            A. Product
       SWD strives to offer more than a quality product; this is done through what SWD calls
brand-culture integration. This SWD a competitive edge; the product becomes more than a
longboard, rather a piece of art that enhances the ride and lifestyle, and it is done through
the TEACH customization model (refer to appendix A-1):
                               1.   Technical Specifications
                               2.   Explanation
                               3.   Art
                               4.   Creation
                               5.   Help.

       The TEACH production method allows the customer to be part of the creation of their
board and remain involved with SWD through lifestyle enhancements. In step one the
customer chooses technical specifications of their board; such as wheels, trucks, bearings,
and deck material, all affecting the total cost of their board. Customers can choose from a
list of brand name, and non-branded trucks, and wheels to create a ride suited to them. If
they are looking for a more competitive level ride they can choose a bamboo deck with
Gator trucks, and Abec wheels; or a beginner rider, or someone looking for a lower priced
product, still high in quality, can choose a maple deck, with select trucks, and hybrid wheels.


       In step two, explanation, the customer explains their vision for their board. This is
done in a graphical method where the customer sketches, on-line, the top and bottom of
their board. In step three the interface displays a mock-up of their customized longboard for
their approval. Step four is the creation of the board. Inventory will be kept in order to fulfil
the requested features. In this stage the order is processed on CORELdraw and sent to a
laser engraver through wich the deck is engraved with the design created by the customer.


       Step five, help, is continued support for both the product and lifestyle. Manufacturer
defects are guaranteed and nothing further, like most utilities in extreme sports. The help
feature is most apparent on shipwreckeddecks.com (refer to appendix A-2).

	
  
	
  
	
  
                                                                                                         10
Christopher J. Conery
                                                                                              Founder
	
                                                                                 c.coney@gmail.com
	
                                                                    www.wix.com/shipwreckeddecks/1
                                                                                       (514) 261-6399
	
  


               B. Distribution
       In the initial stages of start-up operations, SWD products will be e-tailed through their
online store; a direct channel of distribution, the product moves directly from the
manufacturer to consumer. The online store is a strong distribution method because (1) the
amount of time the target market spends on the computer, and (2) the traffic attracted by
other features of the website (music, routes, news, etc.).


       Customers walk through the TEACH integrated production method online to submit
their order. The order is processed, the deck engraved, and parts assembled; the finished
product is delivered to the customer in different ways depending on the customer’s delivery
preferences and location. If they are outside the downtown areas of Montreal or Toronto, the
product is delivered via FedEx. FedEx is a reliable company that has an excellent reputation
in timely delivery. If the customer opts out of delivery, and is within the Montreal or Toronto
downtown areas, they can choose to pick-up their finished product at 3451 Aylmer St.
Montreal, or 129 Walmer Rd. Toronto at an arranged time.


       After growth, SWD will sell products in local skate shops in Montreal and the Greater
Toronto Area. At this point, a second distribution channel will run parallel to the former; SWD
will continue direct distribution for online buyers and establish a second channel:
manufacturer to retailer to consumer. Retailing in local skate shops will enhance the reliability
and credibility of SWD, and will enhance market share growth by extending competition to
off-line sellers. This will also expand the reach of the SWD brand to customers of the local
skate shops. SWD will use selective distribution when selling to retail outlets. This is because
the company plans to place the products in a selected amount of retail outlets that
correspond to the SWD brand. The skate shop would offer a new product line with set (non-
customized) packages, as well as information on the original TEACH process, and order
forms. Moving into retail stores, online orders will be picked up at a retail location chosen by
the customer, rather than the previous address. Set packages will be created through a
contest where customers post pictures of their custom SWD longboards on the SWD site
	
  
	
  
	
  
                                                                                                         11
Christopher J. Conery
                                                                                               Founder
	
                                                                              c.coney@gmail.com
	
                                                                 www.wix.com/shipwreckeddecks/1
                                                                                    (514) 261-6399
	
  
and other riders vote on their favorite design. The winners have their boards produces as a
set package sold in retail stores, credit will be given as not to distract the originality of their
ride. In order to maintain the Curve segment, female and male winners will be selected
proportionately. Customization allows SWD to capture the Curve market, as woman can
create a board they will enjoy with whatever colours and designs they desire; it is important
to maintain their representation when selling set packages.


       As a long term goal in distribution, SWD plans to move into retail outlets that
maximize the TEACH customization process and allow for complete integration into both the
virtual and real world of extreme sport culture. Online sales will remain available; however,
will be directed towards international markets, as SWD expands to European and Asian
markets. The main focus will remain in North America with testing markets in Toronto and
Montreal, and later in Vancouver and California. The retail outlets aim for a prestigious
image, where apparel and accessories will be sold in the front of the store leading to the
focal point along the back wall. This will be the ʻshopʼ. At the ʻshopʼ there will be artists
working on products ordered by customers in the store. Customers will be able to see their
boards being made right in front of them, as they enjoy a complementary Redbull to enhance
the experience. There will be a lounge for customers to interact and remain informed on
cultural and SWD news. Distributed at the counter of the ʻshopʼ will be touch screen
interfaces where customers can go through the TEACH process, and even sketch there
ideas on the tablet provided. The order goes directly to the artists who create the boards as
soon as possible. The outlet will lead into other markets as well. In Canada, longboards are
only sold two seasons of the year; however, the TEACH customization method is not limited
to longboards; nor is the help feature, both are open to the entire extreme sport culture. This
allows SWD to open new product lines in snowboarding, wake boarding, skiing, water skiing,
etc. This is an opportunity for the future, that starts by building the SWD brand, and capital
through the online store.




	
  
	
  
	
  
                                                                                                          12
Christopher J. Conery
                                                                                               Founder
	
                                                                                  c.coney@gmail.com
	
                                                                     www.wix.com/shipwreckeddecks/1
                                                                                        (514) 261-6399
	
  
           C. Pricing
       SWD will use introduction psychological pricing strategies. To elicit a prestigious
image, initial product lines take a skimming pricing strategy. This will allow capitalization over
consumer surplus, and will give the SWD brand a prestigious image that will be passed on to
secondary lines in the future. This pricing strategy, paired with a gorilla style promotional
campaign will penetrate the market and embed SWD in extreme culture as a prestigious
brand. To do this, the price will be set to $250.00-$275.00/brd. pending on customer
customizations.


       After moving towards the growth stage of the product’s life cycle, SWD will introduce
a second product line at a lower price in order to stimulate quick growth and develop a
relationship with a variety customers. This line will maintain the SWD image; however, will
increase market share by targeting lower income demographics. In order to maintain the
prestigious image, products will have even number pricing. This directs consumers to
believe that they are getting a better product because it costs more than competition;
however, they understand that they did not have to pay much more to get it. This line will be
priced at $200.00-$225.00.


       SWD will also use geographic pricing strategies; demand will be higher in downtown
regions than rural suburban areas. Therefore, to maintain a supply-demand equilibrium, SWD
will charge consumers in cities more money than in rural areas. Lower costs in areas that
otherwise would not purchase the product will encourage consumption.



            D. Promotion
       SWD has developed strategic promotional plan that revolves around TEACH;
specifically the HELP portal (refer to appendix A-2). To enhance brand integration into
extreme culture SWD will target specific market segments as they have different needs,
which requires unique product positioning. Asides from promoting shipwreckdecks.com
through social media; SWD will also involve themselves in many cultural events that are
important to extreme culture as well as other events important to the target segments. An
	
  
	
  
	
  
                                                                                                          13
Christopher J. Conery
                                                                                           Founder
	
                                                                         c.coney@gmail.com
	
                                                            www.wix.com/shipwreckeddecks/1
                                                                               (514) 261-6399
	
  
example of such events include: FROSH week at McGill and Concordia, Carnival at McGill,
Wake Stock, SnowJam at Mt. Tramblant, etc. At these events boards will be on display and
available to demo. There will also be sticker give awaways with a reminder of the brand and
website. SWD will also engage in poster advertisements around University Campuses, skate
parks, and cultural stores (refer to appendix B-1 and B-2).




6. Quantitative Analysis
      With a start-up capital investment of $10 000, SWD could begin operations
immediately. First, SWD would acquire a laser engraver in order to perform customization.
The investment in inventory will be the basis of the TEACH customization model. It would
also allow for SWD acquire a wider variety of inventory. By investing in brand name supplies,
SWD can capture a higher end market of more competitive riders in the penetration phase of
implementation. It would also stimulate the development of an online store and building of
the interactive homepage crucial for the HELP step of the TEACH customization model.
Further, in order to participate in cultural events, SWD would need an attractive, portable,
display. It is important that this booth is inline with the SWD brand image. It will need to
facilitate the needs of artists in producing boards on site. The booth would include a tent,
banner, counter top, and speakers. SWD would also need to invest in stickers as give-aways
at such cultural events. Refer to appendix C-1 for a projected budget with the proposed $10
000 grant, as well as a break-even analysis in appendix C-2 (2 pages).




7. Implementation Strategy
      The implementation plan is divided into three phases: (1) penetrate market, (2) expand
distribution channel, and (3) increase product lines. In the penetration phase we will begin
promoting shipwreckeddecks.com (point of purchase) to the Stud and Curve markets
segment; the; Grom idolizes the Stud allowing us to penetrate the Grom segment through
success with the Stud. Penetration of the market will be swift with promotional campaigns
(posters, displays, demonstrations, giveaways, etc.) in Montreal at McGill University (starting
	
  
	
  
	
  
                                                                                                      14
Christopher J. Conery
                                                                                                  Founder
	
                                                                           c.coney@gmail.com
	
                                                              www.wix.com/shipwreckeddecks/1
                                                                                 (514) 261-6399
	
  
point to test the market). We will put posters up around the McGill campus as well as the
surrounding residence ghettos. We will also get involved with lifestyle events at the
University specifically. With a launch date set for March 2012; we will raise awareness for
customers in the pre-purchase stage of the buying process. Doing this over social medias,
we will also get involved with Carnival; a university-wide event that lasts an entire week at
the end of February. Here we will have samples of our product to demonstrations and
displays.    We   will   have   sticker   give-a-ways     meant    to   direct   attention     towards
www.shipwreckdecks.com. From there, promotional campaigns will extend to other
univertities and CJEBS in Montreal, Laval, and Kirkland. After an evaluation the Montreal
market, we will look into penetrating the Toronto market starting with Ryerson U and the
University of Toronto.


       In the expansion phase, online store operations will continue; however, we will focus
on sales to independent (local) skate shops in the GTA (ex.: Noise, So Hip, Gravity), and
Montreal (ex.: Off the Wall, Underground, Empire). To maintain and enhance TEACH
(integrative production), there will be an Artist/Salesperson at each shop (during the busiest
hours) who creates the board on-site while the customer enjoys a Redbull (branded as
extreme, enhances mood) on us. To celebrate the transition, we will host ʻpartiesʼ in the
shops with live music from bands/DJs on our website, refreshments, giveaways, and
discounts.



       In phase three we will increase the product lines to lifestyle apparel and accessories
that perpetuate the originality and individuality of the SWD brand. These products will skim
the market, first to be given away with boards, later to be sold at a discount when
purchasing a board.




                         Refer to appendix D-2 for an outline of each phase of the implementation plan.

	
  
	
  
	
  
                                                                                                             15
Christopher J. Conery
                                                                                          Founder
	
                                                                             c.coney@gmail.com
	
                                                                www.wix.com/shipwreckeddecks/1
                                                                                   (514) 261-6399
	
  
I. Appendix A-1


       Below is the, Marketing Layout for TEACH:




       Below the marketing layout for TEACH appears on the website. Each step is clickable;
a pop-up explains what happens during the corresponding stage and how it contributes to
the process. There will be pictures, videos, and copy:
	
  




	
  
	
  
	
  
                                                                                                     16
Christopher J. Conery
                                                                                              Founder
	
                                                                                 c.coney@gmail.com
	
                                                                    www.wix.com/shipwreckeddecks/1
                                                                                       (514) 261-6399
	
  
II. Appendix A-2

       Step five, HELP, is continued support for both the product and lifestyle. Manufacturer
defects are guaranteed and nothing further, like most utilities in extreme sports. The help
feature is most apparent on shipwreckeddecks.com. The home page is divided into four
quadrants, and is shown below:




        The home page will be interactive with each of the four quadrants linked to a pop-up
window. In the Leisure (top left) quadrant, users can find friends, blog, post pictures, and find
tips (in video form) on executing new maneuvers (dancing, carving, etc). They will also find
lifestyle events, festivals, and music from bands we will support in the future. In the Routines
(bottom left) quadrant, users can find the best routes in their area to navigate through the city
seamlessly. They can also find some of the more challenging places to ride; boarders will be
able to post new places, comment on certain routes, and ʻlikeʼ them. Under the Athletics
(bottom right) quadrant, users can find information on the industry’s top riders, and
competitions, as well as what is going on around the world, relevant to extreme culture. The
SHIPWRECKEDDECKS quadrant will link to information about SWD. It will be a blog-like
setting that keeps customers up to date with what’s new with SWD. This is a website that
extreme sport goers would appreciate as a personal homepage.
	
  
	
  
	
  
                                                                                                         17
Christopher J. Conery
                                            Founder
	
                               c.coney@gmail.com
	
                  www.wix.com/shipwreckeddecks/1
                                     (514) 261-6399
	
  
III. Appendix B-1
	
  




	
  
	
  
	
  
                                                       18
Christopher J. Conery
                                                                                             Founder
	
                                                                                c.coney@gmail.com
	
                                                                   www.wix.com/shipwreckeddecks/1
                                                                                      (514) 261-6399
	
  




Describing the Advertisements

        On the previous page, in Appendix B-1, is a temporary promotional poster/newspaper
ad. It is meant to connect the brand back to the roots of longboarding on the boardwalk,
away from the city. The ad implies the sexual innuendo: itʼs better on top. It is aimed toward
the Stud as it gives him the opportunity to explore his own roots through longboarding, all
the while teasing him with his sexual counterpart, the Curve; portraying the Curve as
unattainable, enhancing desire. This ad also target the Curve as the female in the image
represents a woman empowered by longboarding; she is free from the stereotypes
restricting her in the ‘real’ world.

       On the following page, in Appendix B-2, the ad aims towards the need of thrill, and
rebel, and is largely targeted towards the Grom. The ad also captures the Stud at is present
an opportunity to exceed expectations the world has of him as he is at a point in his life that
pressures him to succeed for the sake of his future. As this as allows the Grom to rebel, it
allows the Stud to go further.




	
  
	
  
	
  
                                                                                                        19
Christopher J. Conery
                                           Founder
	
                              c.coney@gmail.com
	
                 www.wix.com/shipwreckeddecks/1
                                    (514) 261-6399
	
  
IV. Appendix B-2




	
  
	
  
	
  
                                                      20
Christopher J. Conery
                                                                                                                                                                      Founder
	
                                                                                                                                             c.coney@gmail.com
	
                                                                                                                                www.wix.com/shipwreckeddecks/1
                                                                                                                                                   (514) 261-6399
	
  
V. Appendix C-1
                                                              Projected	
  Start-­‐Up	
  Budget	
  
       	
                            Allocation	
                               	
     Value	
             	
   Future	
  Cost	
  to	
  Acquire	
   	
              Margin	
  
       Production	
                                                                                        Made	
  prior	
  investment	
  	
  
       Capital	
                                                                	
  
       	
  	
  	
  Laser	
  Engraver	
                                          	
   $8,000	
  	
   	
                                $8,000	
  	
   	
              fixed	
  
       	
  	
  	
  Ocilating	
  Spindle	
  Sander	
                                    $200	
  	
                                      $200	
  	
                    fixed	
  
       	
  	
  	
  Jig-­‐Saw	
                                                         $125	
  	
                                      $125	
  	
                    fixed	
  
       	
  	
  	
  Cat	
  Sander	
                                                      $75	
  	
                                        $75	
  	
                   fixed	
  
       	
  	
  	
  Drill	
                                                              $75	
  	
                                        $75	
  	
                   fixed	
  
       	
  	
  	
  Tool	
  Box	
  (wrench,	
  screwdriver,	
  knife)	
                  $50	
  	
                                        $50	
  	
                   fixed	
  
       Supplies	
  	
                                                           (price/unit)	
  
       	
  	
  	
  Deck	
                                                               $20	
  	
   	
                                 $400	
  	
        	
   20	
  units	
  
       	
  	
  	
  Truck	
  (2	
  pcs.)	
  [includes	
  hardware]	
                     $15	
  	
                                      $300	
  	
             20	
  units	
  
       	
  	
  	
  Wheel	
  (4	
  pcs.)	
  [Includes	
  Bearings]	
                     $25	
  	
                                      $500	
  	
             20	
  units	
  
       	
  	
  	
  Grip	
  Tape	
                                                        $3	
  	
                                        $60	
  	
            20	
  units	
  
       Sub-­‐Total	
                                                                                                                  $9,785	
  	
  
                                                                                	
                                                                  	
  
       Distribution	
  
       	
                                                                       	
                       	
                                         	
  
       Online	
  Store	
                                                        	
                       	
                                         	
  
       	
  	
  	
  TEACH	
  Portal	
  development	
                             	
          $300	
  	
   	
                           $250	
  	
   	
                fixed	
  	
  
       	
  	
  	
  HELP	
  Portal	
  development	
                                          $200	
  	
                                $250	
  	
                     fixed	
  	
  
       	
  	
  	
  Store	
                                                                  $500	
  	
                                $500	
  	
                     fixed	
  	
  
       	
  	
  	
  Hosting/Domain	
                                                          $30	
  	
                                  $30	
  	
                      /yr.	
  	
  
       Sub-­‐Total	
                                                                                                                 $1,030	
  	
  
                                                                                	
                                                                  	
  
       Promotion	
  
       	
                                                                       	
                     	
                                           	
  
       Advertising	
                                                            	
                     	
                                           	
  
       	
  	
  	
  Posters	
                                                    	
     $200.00	
  	
   	
                           $200.00	
  	
   	
               fixed	
  
       	
  	
  	
  Business	
  Cards	
                                                   $300	
  	
                                   $300	
  	
                     fixed	
  
       	
  	
  	
  Stickers/Buttons	
                                                    $100	
  	
                                   $100	
  	
                     fixed	
  
       Event	
  Sponsorship	
  
       	
  	
  	
  Tent	
                                                       	
           $75	
  	
   	
                                $75	
  	
                 fixed	
  
                                                                                                                                                                          	
  
       	
  	
  	
  Speakers	
                                                               $150	
  	
                                    $150	
  	
                 fixed	
  
       	
  	
  	
  Banner	
                                                                  $50	
  	
                                     $50	
  	
                 fixed	
  
       Sub-­‐Total	
                                                                                                                      $875	
  	
  
                                                                          	
                                                                             	
  
       	
  
       Total	
  	
                                                        	
                      	
                 $11,690	
  	
                       	
  
       Total	
                                                            	
  	
                                     $10,260	
  	
                       	
  	
  
       *Highlighted	
  is	
  the	
  arrangement	
  for	
  grant	
  that	
  will	
  be	
  spent	
  within	
  6	
  months	
  




	
  
	
  
	
  
                                                                                                                                                                                      21
Christopher J. Conery
                                                                                                                          Founder
	
                                                                                                             c.coney@gmail.com
	
                                                                                                www.wix.com/shipwreckeddecks/1
                                                                                                                   (514) 261-6399
	
  


       VI. Appendix C-2
       	
  
                                              Break-­‐Even	
  Analysis	
  
       Costs	
  
       	
                                                                    	
  
       Fixed	
  Costs	
                                                      	
  
       Capital	
  Investment	
  for	
  Production	
                          	
  
       	
  	
  	
  Laser	
  Engraver	
  	
                                   $8,000	
  	
  
                                                                             	
  
       	
  	
  	
  Ocilating	
  Spindle	
  Sander	
                          $200	
  	
  
       	
  	
  	
  Jig-­‐Saw	
                                               $125	
  	
  
       	
  	
  	
  Cat	
  Sander	
                                           $75	
  	
  
       	
  	
  	
  Drill	
                                                   $75	
  	
  
       	
  	
  	
  Tool	
  Box	
  (wrench,	
  screwdriver,	
  knife)	
       $50	
  	
  
       Capital	
  Investment	
  for	
  Distribution	
  
       	
  	
  	
  TEACH	
  Portal	
  development	
                          $300	
  	
  
                                                                             	
  
       	
  	
  	
  HELP	
  Portal	
  development	
                           $200	
  	
  
       	
  	
  	
  Online	
  Store	
                                         $500	
  	
  
       	
  	
  	
  Hosting/Domain	
                                          $30	
  	
  
       Capital	
  Investment	
  for	
  Promotion	
  
       	
  	
  	
  Advertising	
                                             	
  
       	
  	
  	
  	
  	
  	
  Posters	
                                     $200.00	
  	
  
                                                                             	
  
       	
  	
  	
  	
  	
  	
  Business	
  Cards	
                           $300	
  	
  
       	
  	
  	
  	
  	
  	
  Stickers/Buttons	
                            $100	
  	
  
       	
  	
  	
  Event	
  Sponsorship	
  
       	
  	
  	
  	
  	
  	
  Tent	
                                        $75	
  	
  
                                                                             	
  
       	
  	
  	
  	
  	
  	
  Speakers	
                                    $150	
  	
  
       	
  	
  	
  	
  	
  	
  Banner	
                                      $50	
  	
  
       Total	
                                                               $10,430.00	
  	
  
       Variable	
  Costs	
  
       	
  	
  	
  Deck	
                                                    $20	
  	
  
                                                                             	
  
       	
  	
  	
  Truck	
  (2)	
  [includes	
  hardware]	
                  $15	
  	
  
       	
  	
  	
  Wheel	
  (4)	
  [Includes	
  Bearings]	
                  $25	
  	
  
       	
  	
  	
  Grip	
  Tape	
                                            $3	
  	
  
       Total	
                                                               $63	
  	
  
       Contribution	
  Margin	
  
       	
  	
  	
  Avg.	
  Price/unit	
                                      $250	
  	
  
                                                                             	
  
       	
  	
  	
  Avg.	
  Cost/unit	
                                       $63	
  	
  
       Contribution	
  Margin	
                                              $187	
  	
  
       Break-­‐Even	
  Analysis	
                                            	
  	
  
       Number	
  of	
  Units	
  	
                                           55.77540107	
  
       Sales	
                                                               $13,943.85	
  	
  


	
  
	
  
	
  
                                                                                                                                     22
Christopher J. Conery
                                                                                                                                                                         Founder
	
                                                                                                                                                     c.coney@gmail.com
	
                                                                                                                                        www.wix.com/shipwreckeddecks/1
                                                                                                                                                           (514) 261-6399
	
  


                                                                     Break-­‐Even	
  Analysis	
  
                          20000	
  



                          18000	
  



                          16000	
  



                          14000	
  



                          12000	
  
              Sales	
  




                          10000	
  



                           8000	
  



                           6000	
  



                           4000	
  



                           2000	
  



                                0	
  
                                        1	
     6	
     11	
     16	
     21	
     26	
     31	
     36	
     41	
      46	
     51	
     56	
     61	
      66	
     71	
  
                                                                                            Number	
  of	
  Units	
  


       	
  
       	
  
       	
                                                                                                                                                                       	
  
	
  
	
  
	
  

	
  
	
  
	
  
                                                                                                                                                                                       23
Christopher J. Conery
                                                   Founder
	
                                      c.coney@gmail.com
	
                         www.wix.com/shipwreckeddecks/1
                                            (514) 261-6399
	
  
ViI. Appendix D-1
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
                  	
  
	
  
	
  
	
  
	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
          	
  
	
  
	
  
	
  
                                                              24
Christopher J. Conery
                                             Founder
	
                                c.coney@gmail.com
	
                   www.wix.com/shipwreckeddecks/1
                                      (514) 261-6399
	
  
VIiI. Appendix D-2
         	
  
	
  
	
  




	
  
	
  
	
  
                                                        25

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Shiwpreck Decks

  • 1.                                                                 SHIPWRECKED DECKS (SWD) Cruise OnBoard Christopher J. Conery Founder c.coney@gmail.com www.wix.com/shipwreckeddecks/1 (514) 261-6399
  • 2. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   Executive Summary SWD manufactures and distributes custom longboards (elongated skateboard, with large wheels and loose trucks, meant to simulate surfing on tarmac) to customers in the Greater Toronto Area (GTA) and in Montreal; two urban Canadian cities with a high concentration of consumers within the target market. As a provider of extreme sport utilities, we strive for more than a quality product, we strive to integrate our band into extreme sport culture. Our competitive edge is simple; our product becomes more than a longboard, rather a piece of art that enhances the ride and lifestyle. How do we do this? It is our integrated production model labeled TEACH: · Technical Specifications: customer chooses wood, wheels, trucks. · Explanation: Customer graphically, orally, or textually explains vision. · Art: artwork for grip tape and deck is processed in COREL DRAW by artist · Creation: Outsourced products are processed through Laser Engraver · Help: Customer support; not only for product, but for lifestyle. Website helps customers find: best spots to ʻshredʼ, fresh music, other riders, cultural news/events; and blog. This gives SWD a competitive edge in three ways: (1) customization, (2) unique deck art and tape designs, and (3) sustained interaction for a lifestyle brand. To continue, our product, first and foremost, satisfies the thrill-seeking needs of our customers. From their it satisfies transportation, leisurely, athletic/fitness, and specific to SWD, creative, individual, and expressive needs of our clients. Our implementation plan, detailed in this document, requires start-up funds for production capital and supplies, promotion, and administration. Phase one focuses on market penetration; phase two, expansion of distribution channels, and three, increased product lines.       2
  • 3. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   Table of Contents Executive Summary 2 1. Mission 4 2. Management Team 5 3. Consumer Profile - Market Segmentation 6 4. Environmental Analysis 8 A. Strengths 8 B. Weaknesses 8 C. Opportunities 9 D. Threats 9 5. Marketing Plan 10 A. Product 10 B. Distribution 11 C. Pricing 13 D. Promotion 13 6. Quantitative Analysis 14 7. Implementation Strategy 14 I. Appendix A-1 16 II. Appendix A-2 17 III. Appendix B-1 18 IV. Appendix B-2 20 V. Appendix C-1 21 VI. Appendix C-2 22 ViI. Appendix D-1 24 VIiI. Appendix D-2 25       3
  • 4. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399             1. Mission Our mission is to customize and distribute longboards to our target market segments and create a network through which the SWD brand be embedded into extreme sport culture. To dedicate ourselves to the SWD standard, SIQ [sik], working towards extended customer service, innovation, and quality product. We have set three initiatives through which our mission can be accomplished. In order become embedded into extreme sport culture, SWD must maintain a (1) position selling more than a product through added utility in service. There are two measures for achievement; (A) establish TEACH customization method, and (B) implement extended customer loyalty program through ‘HELP’ portal (online customer service feature of TEACH). The second initiative involves (2) implementing strategic supply infrastructure by: (A) establish industrial supplier and increase buying power, and (B) invest in capital for product customization; acquire laser engraver. This initiative leads towards delivering quality, consistent, and fully customized longboards. Third, (3) raise awareness and create customer base to begin distribution. To prepare the market for a March 2012 entry date, we will use social medias, Facebook and Twitter to (A) raise pre-season awareness, (B) direct interest towards shipwreckeddecks.com, and (C) conduct ongoing market research for brand development/integration. Refer to appendix D-1 for more information on the status of each objective.       4
  • 5. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   2. Management Team Christopher John Conery is the sole-proprietor of SWD; single ownership allows consistency, fast decision-making, and accountability. Conery is responsible for managing and coordinating different factors of production, marketing, and development, to work towards company objectives. Christopher John Conery (June 17, 1992) is a young entrepreneur, student, and extreme sport goer. Conery previously founded DogPound (2005), a hot dog stand, Retro- Pops (2006), a candy manufacturer, Sawmill Valley Landscaping (2007), and Knockout Buttons (2009). Currently, Conery is a business undergraduate student in the Desautels Faculty of Management at McGill University. Conery discovered his passion for the extreme sport lifestyle in 2000, when he began mountain biking the biggest mountains in Eastern Canada. His passion for extreme sports, and presence on the mountain led to a snowboarding obsession by the age of twelve. His conformation to board sports, led Conery to skateboarding. Realizing the similarities between longboarding and snowboarding, he quickly abandoned the short-board, for the longboard. His passion for longboarding led to the establishment of SWD in 2011, an idea that was born four years earlier in 2007. Conery is a dominantly right brain thinker. His intuition, creativity, and view of the big picture allow him to think on his toes, and come up with fresh innovative ways to connect SWD to the extreme lifestyle. He is able to come up with creative solutions to industry, company, and customer problems quickly. Conery is strong at connecting with customers, and corporate partners, which has created a strong network for SWD. He is majoring in marketing and has innovative ideas for promoting his brand. His attention to detail ensures that nothing is overlooked in production and can confidently guarantee his products. Coneryʼs confidence distracts his young age; he is not intimidated by any situation, and looks at them as opportunities. Time-management and organization skills are important for Coneryʼs ability to balance his education, business, extra-curricular activities, and social life.       5
  • 6. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   3. Consumer Profile - Market Segmentation Three market segments have emerged as key target markets; (1) Grom, (2) Stud, and (3) Curve. The following is a list of characteristics describing the Grom: • Male, between the ages 12 and 18; he attends high-school. • Lives in urban settings with parents (ex. GTA, Montreal). • Minimal/no income; the ʻGromʼ is the customer, his parents, the consumer. • In the GTA, this segment is estimated to 172 5001, in Montreal, 106 0002. The Grom’s need is in love/belonging, SWD welcomes the Grom into adolescenthood and unites him with the Stud (aspiring mentor they long to become). More; it allows them to seek thrill and rebel against parents/society that they have trouble connecting to at their tender age. The following list describes the characteristics of segment 2, referred to as the Stud: • Male, 19-24 years; enrolled in post-secondary education or has a low-income job. • Living in urban areas, without parents, has little disposable income as consumer. • In the GTA, this segment is estimated at 195 000 3 ; Montreal, 66 6064 (excludes temporary residents attending McGill University, Concordia, UQAM, etc.; the actual market size is estimated to be over 100 000). The Stud’s need is unique from that of the Grom (although both satisfy the need for thrill), the Stud’s need is in self-actualization. SWD allows the Stud to express himself through his longboard and provides an activity through which he can ponder morality and spontaneity.                                                                                                                 1 ,3 Statistics Canada, Consensus 2006. www.toronto.ca/invest-in-toronto 2 ,4 Statistics Canada. Consensus 2006. www.stat.gouv.qc.cam 2 http://www.usatoday.com/sports/2006-06-20-longboarding_x.htm       6
  • 7. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   Segment 3, titled the Curve, is our female segment between the ages 15-22. We have kept the female market separate from the male and less classified due to their lesser presence in the industry; however, we understand that this segment’s interest in the extreme lifestyle is growing, and that it is important to develop relationships with this market now to gain loyalty in the future. USAtoday says growth rates of females in the longboarding sector are 2% higher than males5. The customizability of SWD boards liberates female riders to express themselves through their board in an industry centered around males. The Curve introduces a new need and requires a unique position of SWD. Through extreme culture, the Curve satisfies esteem needs; SWD provides confidence, achievement, respect, and empowerment. Along with our customizable product and unique artistic stylings, our integrated website will connect SWD to extreme culture, and will establish customer loyalty, growth, and excitement. Moreover, by involvement in cultural events, consumers get to know SWD personally, and get to see our artwork and board quality. Also because our product is also a unique piece of art, it keeps customers open to multiple purchases.                                                                                                                             7
  • 8. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   4. Environmental Analysis A. Strengths   SWD is strong in: (1) production capability, (2) product width, (3) distribution, and (4) power over customers. (1) Buying materials wholesale reduces variable costs, and the need for capital in fixed costs (minimizing investment risk), and also displaces legal accountability for injuries and damaged goods. Outsourcing also allows increased supply without employing more staff and capital investments. To continue, (2) multiple product lines, separated and justified through strategic pricing, captures riders at any skill level: competitive to recreational. Further, (3) the online store attracts customers through its interactive lifestyle space and reduces storefront costs; it is enhanced by targeted segments time spent online. Also, being located on the McGill campus allows for fast penetration of Montreal student market through trendsetters enrolled at McGill. Finally, (4) the SWD competitive advantage displaces buyer power through product differentiation, i.e. customization and grip tape designs, which also entices multiple purchases. B. Weaknesses   Although weaknesses can be found through a company analysis of SWD, they can be turned into strengths through simple administration. (1) Creative spirits of artists cannot be consistently timely; however, motivations from customers can foster artistic capital. (2) Without market share at start-up, there is an obligation for SWD to gain customer loyalty through engaging with extreme culture (integration in lifestyle events). (3) The on-line store presents opportunity for international market, but it cannot be reached because of shipping incapabilities; there is, however, a potential to test foreign markets through the online store in the future to maintain an economy of scale. (4) Reliance on suppliers removes control over deadlines; however, suppliers are made accountable through contingencies.       8
  • 9. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   C. Opportunities   The current industry presents an opportune climate for SWD. (1) The socio-political movement towards environmental sustainability and alternative transportation offers a potential new market for SWD. Also raising gas and oil prices powers the search for alternative transportation for economic reasons. USA Today reports the latest trend in transportation amongst adults is longboarding. 85% of skateboarders leave the sport by the time they are 18, 80% of which return to recreational and transportation-based longboarding6. (2) Municipalities in the GTA and Montreal area are funding renovations of skate parks; as well (3) the rejuvenation of the Toronto boardwalk and Montreal warf, presents a new space to longboard that is similar to California, a novelty that attracted new athletes in California and potentially will do the same in Canada. (4) Socio-cultural opportunities are seen through local industry/target market events that attract media attention (Wakestok, SnowJam, etc.). (5) Increasing online interactions offers an opportunity for the SWD online store. (6) There is a potential opportunity to innovate by partnering with SlowBros; a company on the verge of developing a patented longboard disc break. The owner is a student at McGill politically tied to Conery. D. Threats   SWD is threatened by (1) direct competition including: Sector 9 (cheap), Loaded (prestigious), Landyatz (solely slalom decks), Arbor (focus on sustainability), and Original (high value). (2) Substitutes include bikes, rollerblades, and skateboards; however, extreme sport enthusiasts are not deviated from one discipline for another. (3) Political concerns are municipal regulations and by-laws regarding skateboarding. The requirement to ride on the road, for example, may present a threat to the Grom segment; however, similar regulations on biking, did not affect young bikers. (4) Socio-cultural concerns in raising interests in video games displaces the desire for physical activity. However, government advertising to promote physical activity will work in SWD’s favor. (5) Technology poses a threat in SWDs inability to innovate longboard technologies because of a reliance on suppliers.                                                                                                                 6 http://www.usatoday.com/sports/2006-06-20-longboarding_x.htm       9
  • 10. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   5. Marketing Plan A. Product SWD strives to offer more than a quality product; this is done through what SWD calls brand-culture integration. This SWD a competitive edge; the product becomes more than a longboard, rather a piece of art that enhances the ride and lifestyle, and it is done through the TEACH customization model (refer to appendix A-1): 1. Technical Specifications 2. Explanation 3. Art 4. Creation 5. Help. The TEACH production method allows the customer to be part of the creation of their board and remain involved with SWD through lifestyle enhancements. In step one the customer chooses technical specifications of their board; such as wheels, trucks, bearings, and deck material, all affecting the total cost of their board. Customers can choose from a list of brand name, and non-branded trucks, and wheels to create a ride suited to them. If they are looking for a more competitive level ride they can choose a bamboo deck with Gator trucks, and Abec wheels; or a beginner rider, or someone looking for a lower priced product, still high in quality, can choose a maple deck, with select trucks, and hybrid wheels. In step two, explanation, the customer explains their vision for their board. This is done in a graphical method where the customer sketches, on-line, the top and bottom of their board. In step three the interface displays a mock-up of their customized longboard for their approval. Step four is the creation of the board. Inventory will be kept in order to fulfil the requested features. In this stage the order is processed on CORELdraw and sent to a laser engraver through wich the deck is engraved with the design created by the customer. Step five, help, is continued support for both the product and lifestyle. Manufacturer defects are guaranteed and nothing further, like most utilities in extreme sports. The help feature is most apparent on shipwreckeddecks.com (refer to appendix A-2).       10
  • 11. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   B. Distribution In the initial stages of start-up operations, SWD products will be e-tailed through their online store; a direct channel of distribution, the product moves directly from the manufacturer to consumer. The online store is a strong distribution method because (1) the amount of time the target market spends on the computer, and (2) the traffic attracted by other features of the website (music, routes, news, etc.). Customers walk through the TEACH integrated production method online to submit their order. The order is processed, the deck engraved, and parts assembled; the finished product is delivered to the customer in different ways depending on the customer’s delivery preferences and location. If they are outside the downtown areas of Montreal or Toronto, the product is delivered via FedEx. FedEx is a reliable company that has an excellent reputation in timely delivery. If the customer opts out of delivery, and is within the Montreal or Toronto downtown areas, they can choose to pick-up their finished product at 3451 Aylmer St. Montreal, or 129 Walmer Rd. Toronto at an arranged time. After growth, SWD will sell products in local skate shops in Montreal and the Greater Toronto Area. At this point, a second distribution channel will run parallel to the former; SWD will continue direct distribution for online buyers and establish a second channel: manufacturer to retailer to consumer. Retailing in local skate shops will enhance the reliability and credibility of SWD, and will enhance market share growth by extending competition to off-line sellers. This will also expand the reach of the SWD brand to customers of the local skate shops. SWD will use selective distribution when selling to retail outlets. This is because the company plans to place the products in a selected amount of retail outlets that correspond to the SWD brand. The skate shop would offer a new product line with set (non- customized) packages, as well as information on the original TEACH process, and order forms. Moving into retail stores, online orders will be picked up at a retail location chosen by the customer, rather than the previous address. Set packages will be created through a contest where customers post pictures of their custom SWD longboards on the SWD site       11
  • 12. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   and other riders vote on their favorite design. The winners have their boards produces as a set package sold in retail stores, credit will be given as not to distract the originality of their ride. In order to maintain the Curve segment, female and male winners will be selected proportionately. Customization allows SWD to capture the Curve market, as woman can create a board they will enjoy with whatever colours and designs they desire; it is important to maintain their representation when selling set packages. As a long term goal in distribution, SWD plans to move into retail outlets that maximize the TEACH customization process and allow for complete integration into both the virtual and real world of extreme sport culture. Online sales will remain available; however, will be directed towards international markets, as SWD expands to European and Asian markets. The main focus will remain in North America with testing markets in Toronto and Montreal, and later in Vancouver and California. The retail outlets aim for a prestigious image, where apparel and accessories will be sold in the front of the store leading to the focal point along the back wall. This will be the ʻshopʼ. At the ʻshopʼ there will be artists working on products ordered by customers in the store. Customers will be able to see their boards being made right in front of them, as they enjoy a complementary Redbull to enhance the experience. There will be a lounge for customers to interact and remain informed on cultural and SWD news. Distributed at the counter of the ʻshopʼ will be touch screen interfaces where customers can go through the TEACH process, and even sketch there ideas on the tablet provided. The order goes directly to the artists who create the boards as soon as possible. The outlet will lead into other markets as well. In Canada, longboards are only sold two seasons of the year; however, the TEACH customization method is not limited to longboards; nor is the help feature, both are open to the entire extreme sport culture. This allows SWD to open new product lines in snowboarding, wake boarding, skiing, water skiing, etc. This is an opportunity for the future, that starts by building the SWD brand, and capital through the online store.       12
  • 13. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   C. Pricing SWD will use introduction psychological pricing strategies. To elicit a prestigious image, initial product lines take a skimming pricing strategy. This will allow capitalization over consumer surplus, and will give the SWD brand a prestigious image that will be passed on to secondary lines in the future. This pricing strategy, paired with a gorilla style promotional campaign will penetrate the market and embed SWD in extreme culture as a prestigious brand. To do this, the price will be set to $250.00-$275.00/brd. pending on customer customizations. After moving towards the growth stage of the product’s life cycle, SWD will introduce a second product line at a lower price in order to stimulate quick growth and develop a relationship with a variety customers. This line will maintain the SWD image; however, will increase market share by targeting lower income demographics. In order to maintain the prestigious image, products will have even number pricing. This directs consumers to believe that they are getting a better product because it costs more than competition; however, they understand that they did not have to pay much more to get it. This line will be priced at $200.00-$225.00. SWD will also use geographic pricing strategies; demand will be higher in downtown regions than rural suburban areas. Therefore, to maintain a supply-demand equilibrium, SWD will charge consumers in cities more money than in rural areas. Lower costs in areas that otherwise would not purchase the product will encourage consumption. D. Promotion SWD has developed strategic promotional plan that revolves around TEACH; specifically the HELP portal (refer to appendix A-2). To enhance brand integration into extreme culture SWD will target specific market segments as they have different needs, which requires unique product positioning. Asides from promoting shipwreckdecks.com through social media; SWD will also involve themselves in many cultural events that are important to extreme culture as well as other events important to the target segments. An       13
  • 14. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   example of such events include: FROSH week at McGill and Concordia, Carnival at McGill, Wake Stock, SnowJam at Mt. Tramblant, etc. At these events boards will be on display and available to demo. There will also be sticker give awaways with a reminder of the brand and website. SWD will also engage in poster advertisements around University Campuses, skate parks, and cultural stores (refer to appendix B-1 and B-2). 6. Quantitative Analysis With a start-up capital investment of $10 000, SWD could begin operations immediately. First, SWD would acquire a laser engraver in order to perform customization. The investment in inventory will be the basis of the TEACH customization model. It would also allow for SWD acquire a wider variety of inventory. By investing in brand name supplies, SWD can capture a higher end market of more competitive riders in the penetration phase of implementation. It would also stimulate the development of an online store and building of the interactive homepage crucial for the HELP step of the TEACH customization model. Further, in order to participate in cultural events, SWD would need an attractive, portable, display. It is important that this booth is inline with the SWD brand image. It will need to facilitate the needs of artists in producing boards on site. The booth would include a tent, banner, counter top, and speakers. SWD would also need to invest in stickers as give-aways at such cultural events. Refer to appendix C-1 for a projected budget with the proposed $10 000 grant, as well as a break-even analysis in appendix C-2 (2 pages). 7. Implementation Strategy The implementation plan is divided into three phases: (1) penetrate market, (2) expand distribution channel, and (3) increase product lines. In the penetration phase we will begin promoting shipwreckeddecks.com (point of purchase) to the Stud and Curve markets segment; the; Grom idolizes the Stud allowing us to penetrate the Grom segment through success with the Stud. Penetration of the market will be swift with promotional campaigns (posters, displays, demonstrations, giveaways, etc.) in Montreal at McGill University (starting       14
  • 15. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   point to test the market). We will put posters up around the McGill campus as well as the surrounding residence ghettos. We will also get involved with lifestyle events at the University specifically. With a launch date set for March 2012; we will raise awareness for customers in the pre-purchase stage of the buying process. Doing this over social medias, we will also get involved with Carnival; a university-wide event that lasts an entire week at the end of February. Here we will have samples of our product to demonstrations and displays. We will have sticker give-a-ways meant to direct attention towards www.shipwreckdecks.com. From there, promotional campaigns will extend to other univertities and CJEBS in Montreal, Laval, and Kirkland. After an evaluation the Montreal market, we will look into penetrating the Toronto market starting with Ryerson U and the University of Toronto. In the expansion phase, online store operations will continue; however, we will focus on sales to independent (local) skate shops in the GTA (ex.: Noise, So Hip, Gravity), and Montreal (ex.: Off the Wall, Underground, Empire). To maintain and enhance TEACH (integrative production), there will be an Artist/Salesperson at each shop (during the busiest hours) who creates the board on-site while the customer enjoys a Redbull (branded as extreme, enhances mood) on us. To celebrate the transition, we will host ʻpartiesʼ in the shops with live music from bands/DJs on our website, refreshments, giveaways, and discounts. In phase three we will increase the product lines to lifestyle apparel and accessories that perpetuate the originality and individuality of the SWD brand. These products will skim the market, first to be given away with boards, later to be sold at a discount when purchasing a board. Refer to appendix D-2 for an outline of each phase of the implementation plan.       15
  • 16. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   I. Appendix A-1 Below is the, Marketing Layout for TEACH: Below the marketing layout for TEACH appears on the website. Each step is clickable; a pop-up explains what happens during the corresponding stage and how it contributes to the process. There will be pictures, videos, and copy:         16
  • 17. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   II. Appendix A-2 Step five, HELP, is continued support for both the product and lifestyle. Manufacturer defects are guaranteed and nothing further, like most utilities in extreme sports. The help feature is most apparent on shipwreckeddecks.com. The home page is divided into four quadrants, and is shown below: The home page will be interactive with each of the four quadrants linked to a pop-up window. In the Leisure (top left) quadrant, users can find friends, blog, post pictures, and find tips (in video form) on executing new maneuvers (dancing, carving, etc). They will also find lifestyle events, festivals, and music from bands we will support in the future. In the Routines (bottom left) quadrant, users can find the best routes in their area to navigate through the city seamlessly. They can also find some of the more challenging places to ride; boarders will be able to post new places, comment on certain routes, and ʻlikeʼ them. Under the Athletics (bottom right) quadrant, users can find information on the industry’s top riders, and competitions, as well as what is going on around the world, relevant to extreme culture. The SHIPWRECKEDDECKS quadrant will link to information about SWD. It will be a blog-like setting that keeps customers up to date with what’s new with SWD. This is a website that extreme sport goers would appreciate as a personal homepage.       17
  • 18. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   III. Appendix B-1         18
  • 19. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   Describing the Advertisements On the previous page, in Appendix B-1, is a temporary promotional poster/newspaper ad. It is meant to connect the brand back to the roots of longboarding on the boardwalk, away from the city. The ad implies the sexual innuendo: itʼs better on top. It is aimed toward the Stud as it gives him the opportunity to explore his own roots through longboarding, all the while teasing him with his sexual counterpart, the Curve; portraying the Curve as unattainable, enhancing desire. This ad also target the Curve as the female in the image represents a woman empowered by longboarding; she is free from the stereotypes restricting her in the ‘real’ world. On the following page, in Appendix B-2, the ad aims towards the need of thrill, and rebel, and is largely targeted towards the Grom. The ad also captures the Stud at is present an opportunity to exceed expectations the world has of him as he is at a point in his life that pressures him to succeed for the sake of his future. As this as allows the Grom to rebel, it allows the Stud to go further.       19
  • 20. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   IV. Appendix B-2       20
  • 21. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   V. Appendix C-1 Projected  Start-­‐Up  Budget     Allocation     Value     Future  Cost  to  Acquire     Margin   Production   Made  prior  investment     Capital          Laser  Engraver     $8,000       $8,000       fixed        Ocilating  Spindle  Sander   $200     $200     fixed        Jig-­‐Saw   $125     $125     fixed        Cat  Sander   $75     $75     fixed        Drill   $75     $75     fixed        Tool  Box  (wrench,  screwdriver,  knife)   $50     $50     fixed   Supplies     (price/unit)        Deck   $20       $400       20  units        Truck  (2  pcs.)  [includes  hardware]   $15     $300     20  units        Wheel  (4  pcs.)  [Includes  Bearings]   $25     $500     20  units        Grip  Tape   $3     $60     20  units   Sub-­‐Total   $9,785         Distribution           Online  Store              TEACH  Portal  development     $300       $250       fixed          HELP  Portal  development   $200     $250     fixed          Store   $500     $500     fixed          Hosting/Domain   $30     $30     /yr.     Sub-­‐Total   $1,030         Promotion           Advertising              Posters     $200.00       $200.00       fixed        Business  Cards   $300     $300     fixed        Stickers/Buttons   $100     $100     fixed   Event  Sponsorship        Tent     $75       $75     fixed          Speakers   $150     $150     fixed        Banner   $50     $50     fixed   Sub-­‐Total   $875           Total         $11,690       Total       $10,260         *Highlighted  is  the  arrangement  for  grant  that  will  be  spent  within  6  months         21
  • 22. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   VI. Appendix C-2   Break-­‐Even  Analysis   Costs       Fixed  Costs     Capital  Investment  for  Production          Laser  Engraver     $8,000            Ocilating  Spindle  Sander   $200          Jig-­‐Saw   $125          Cat  Sander   $75          Drill   $75          Tool  Box  (wrench,  screwdriver,  knife)   $50     Capital  Investment  for  Distribution        TEACH  Portal  development   $300            HELP  Portal  development   $200          Online  Store   $500          Hosting/Domain   $30     Capital  Investment  for  Promotion        Advertising                Posters   $200.00                  Business  Cards   $300                Stickers/Buttons   $100          Event  Sponsorship              Tent   $75                  Speakers   $150                Banner   $50     Total   $10,430.00     Variable  Costs        Deck   $20            Truck  (2)  [includes  hardware]   $15          Wheel  (4)  [Includes  Bearings]   $25          Grip  Tape   $3     Total   $63     Contribution  Margin        Avg.  Price/unit   $250            Avg.  Cost/unit   $63     Contribution  Margin   $187     Break-­‐Even  Analysis       Number  of  Units     55.77540107   Sales   $13,943.85           22
  • 23. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   Break-­‐Even  Analysis   20000   18000   16000   14000   12000   Sales   10000   8000   6000   4000   2000   0   1   6   11   16   21   26   31   36   41   46   51   56   61   66   71   Number  of  Units                       23
  • 24. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   ViI. Appendix D-1                                                                                                                   24
  • 25. Christopher J. Conery Founder   c.coney@gmail.com   www.wix.com/shipwreckeddecks/1 (514) 261-6399   VIiI. Appendix D-2             25