10 Tree - New Product Competition Presentation

agenda• Recommendation• Why Australia• Marketing Strategy• Measuring Results

recommendation

Enter Australia Export

100,000 trees

plantedSurfer Sam

goal

100,000 trees = 10,000 units sold = $400,000 in revenue

why Australia• Consumer behaviour connects to brand• Green product trend• Online purchasing trends

porter’s diamondFirm Strategy• Product attributes and attitudes• High Quality• Green initiative

porter’s 5 forces

INTENSITY OF

RIVALRY

NEW ENTRANTS

BUYER POWER

SUBSTITUTES

SUPPLIER POWER

LOW- key suppliers are manufacturers and retailers- low switching cost for retailers- lack of diversity between suppliers

porter’s 5 forces

INTENSITY OF

RIVALRY

NEW ENTRANTS

BUYER POWER

SUBSTITUTES

SUPPLIER POWER

LOW- substitutes include: bespoke tailoring, factory shops, homemade clothing, second hand clothing- online retailers

porter’s 5 forces

INTENSITY OF

RIVALRY

NEW ENTRANTS

BUYER POWER

SUBSTITUTES

SUPPLIER POWER

MODERATE- low switching cost- buyer independence is high- fast pace of change in the demands of individual buyers

porter’s 5 forces

INTENSITY OF

RIVALRY

NEW ENTRANTS

BUYER POWER

SUBSTITUTES

SUPPLIER POWER

MODERATE- composed of large number of similar independent retailers- strong emphasis on apparel- rivals include: Elements, Billabong, RVCA, Jay Jays

benchmarking

Regular Tshirt Regular Sweater

Quality Design Brand0

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10Benchmarking 10tree vs. Competition

BillabongElement RVCAJay Jays10Tree

Factor Conditions • Educate sales force • Capital Resources

porter’s diamond

Relating & Supporting Industries• The green movement • Surf and Adventure

porter’s diamond

Demand Conditions • Sophisticated local consumer• Virtual consumption • Consistent demand

porter’s diamond

porter’s diamond• Local consumer: education on

green trends, desire for superior quality

• Consistent Demand: needs to be described for “OUR” definition

porter’s diamond Government and External Events• Trans-Pacific Partnership talks• Current Tariffs and Import Charges

MARKETING

STRATEGY

target market profile• Surfer Sam – Age: 18-35–Male and Female– Consumption Behaviours– Lifestyle

mode of entry• Export– Direct export– Online and in-store retailers

4P’S: product• Core product benefits• Product attributes• 10tree support services

• Australian line – designs in production

4P’S: price

CompanyFactors

Internal

ProductFactors

Environmental Factors

External

MarketFactors

Pricing Strategies:Skimming/Market

Other elements of

the Marketing Mix

Terms of Business

Firm Performance

4P’S: place• Australian retail market

• Online forums

4P’S: promotion• Promotion adaptation

• Emphasis on message importance – T.R.E.E. • Trust• Responsible • Emotions• Empowering

financials

Total Budget = $38,000

Budget Item Cost ($CAD)Aus. Website $200Online Retailer $8,000Airfare $2,500In-store Retailer $15,000Local Surf Shops $5,000In-store Promotional Material $3,400Online Analytics $1,400Contingency $2,500

measuring results• 100,000 trees planted • $400,000 in revenue

• Budget allocation and efficiency • 8 month diagnoses – 3 year plan TBD