SITUATION ASSESSMENT & KEY ISSUES

Fontana Paddle Company

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October 8, 2013

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EXECUTIVE SUMMARY

● The Fontana Paddleboard “Tribe” is an opportunity to increase awareness of Fontana Paddle Co. and of paddle boarding as a sport in Fontana while building a local, communal group through the “tribe”. We will work to overcome the challenges of seasonal change and local competitors to establish and promote the “tribe” on a larger, more developed scale.

● Key issues that Fontana Paddleboard must address:○ Under promotion of “Tribe” membership○ Lack of unique selling point○ Define who is target demographic for the “Tribe”

Category: Outdoor RecreationSegments: Kayaking, canoeing, rafting, stand-up paddle boarding

OUTDOOR RECREATION MARKET

● Industry grew 5% per year from 2005-2011 despite economic recession (Outdoor Industry Assn.)

● Snow sports make up approximately 50% of retail sales in extreme/action sports industry (Mintel)

● Participation of women in boardsports has increased (Surfers Village)

Female participants represent an opportunity for growth.

Paddlers participate in social but independent activities.

● Top motivators for participation are relaxation, exercise and fun (Outdoor Industry Assn.)

● Paddlers share many “crossover” activities (Mintel)○ Prefer independent over team sports (Mintel)

● Women and minority groups have been underrepresented (Outdoor Industry Assn.)

PADDLE SPORTS OVERVIEW

Source: “A Special Report on Paddleboards 2009.” The Outdoor Foundation. http://www.outdoorfoundation.org/pdf/ResearchPaddlesports.pdf

Source: “A Special Report on Paddleboards 2009.” The Outdoor Foundation. http://www.outdoorfoundation.org/pdf/ResearchPaddlesports.pdf

SEGMENT: STAND-UP PADDLEBOARDING

● Fastest growing segment of surf industry (WSJ)○ 18% increase in participation from 2010 to 2011

(LA Times)● Biggest growth of SUP has been inland (TIME)● Can provide more fitness benefits than other paddle

sports (WSJ)

Opportunity for workout options unavailable to other paddle sports.

Segment:

STAND UP PADDLE BOARDING

The Brand/Company:

Fontana Paddle Board Company

BRANDING:

HALAU TRIBEHalau Tribe● Website design evokes serenity ● Tribe logo and pendent have a Hawaiian

feel ● Social media posts do not evoke the

same brand personality○ Halau Tribe accounts have not

established an independent voice from FPC

Brand personality has not been developed.

Marketing and Sales Support:

WEBSITE PROMOTIONSEvents and Programs Tab● This is the clearest description of FPC events

Events Drop Down● Event dates are not always clear● Past events should be removed● The “Events” tab is cluttered

Home Page● Events tab is replicated on the home page

Suggestions● Combine all events information under one tab● Convert the paddle rental calendar into an online form● Erase past events from the website

Website promotions should all be grouped together in one place

Marketing and Sales Support:

SOCIAL MEDIA PRESENCEFacebook● Good at uploading photos from events● Events are promoted frequently● Good at answering questions followers post● Should engage more in a conversation with followers

Twitter● Tweets are replicas of Facebook posts● Should engage more in a conversation with followers● Does not utilize photo or video features● Should keep to 140 character posts

Suggestions● Social media is currently being used as a promotional tool but not as a conversation

tool● FPC does a good job posting photos of events but does not utilize videos

Engage in a conversation with social media followers

1,070 likes

68 followers

Marketing and Sales Support:

TRIBE PROMOTIONWebsite● The Tribe is not clearly listed on the Website● Drop down and graphic on the home page● More visually engaging and personal webpage page

about the tribe● Easier to link to the Halau Tribe Website

Social Media● Halau Twitter page only resposts Facebook Posts● There is no cross promotion between the FPC and

Halau Tribe social media accountsOther● Lack of print promotional materials● Emails blasts about the Tribe

Utilize web presence to specifically promote the Halau Tribe

30 likes

5 followers

The Consumer Fontana Paddleboard and the “Tribe”

The Consumer

● Current Market○ Rentals: Women and their

children○ Sales: Lake people,

Exercise/Fitness/Health nuts, Outdoor types

● General Market○ Sales

■ Women

■ Elderly/Empty-Nesters

■ Outdoor Types

Localized audience = Increased Commonalities & Reduced FoW/Enhanced Strategic Clarity

At a Glance

Sports Utility Moms

● Child-centered

○ Earlier introduction to sports can lead to lifelong

● Physically active

○ Very likely to spend money on Sports Equipment

● Suburban Life

○ Car-Friendly Media

○ Kid-Friendly Media

● Web Presence

○ Mainstream Utility

Leveraging Parents/Children for information and

messaging

At a Glance

Fast Track Couples

● Mobile/Active Lifestyles

○ Physical activity and health are high priority

○ Don’t have time for traditional media

● Social and Status-Conscious

○ Socially active

○ Self-described trendsetters

● Web Presence

○ Online Receptive

○ Informed Consumer

Incredibly High Social Media ROI

At a Glance

Empty Waterfront Nests

● Spending Power

● Leisurely Enjoyment

● Expanding Market

● Expensive Messaging Demographic

Competition

Competitors

Regional:● Wai Nani Surf & Paddle

○ Minnetonka, MN

● PaddleBoard Specialists

○ Westport, WI

● Windward Boardshop

○ Chicago, IL

Local:● ClearWater Outdoors

○ Lake Geneva, WI

○ Delafield, WI

○ Williams Bay, WI

● Gordy’s Lakefront Marine

○ Fontana, WI

● Gage Marine

○ William’s Bay, WI

Top Competitors

Local:● ClearWater Outdoors● Gordy’s Lakefront Marine

Regional:● Windward Boardshop ● PaddleBoard Specialists

Gordy’s Lakefront Marine

ClearWater Outdoors

GORDY’S LAKEFRONT MARINEFONTANA, WI

● Positioned as a high-class, high-quality brand

● Positioned as a community asset● Boat Club & non-exclusive social

events appeal to various types of consumers

3,824 likes

464 followers

High quality, for everyone

COMMUNITY INVOLVEMENTGORDY’S LAKEFRONT MARINE

● Motto & focus based on high-quality customer service

● Boat House Restaurant and Bar● Give back to the community via volunteering,

fundraising and donations● Weekly and monthly social events to engage

various community members

Source/s: gordysboats.com

CLEARWATER OUTDOORLake Geneva, Delafield & WILLIAMS BAY, WI

● Positioned as a community asset/resource

● E-commerce & online presence give CWO a competitive advantage

● CWO is putting the tribe concept to work

3,824 likes

464 followers

High quality e-commerce and national distribuition

Community AssetClearWater Outdoor

• CWO GIVES BACK TO THE COMMUNITY

• SPONSORING AND HOSTING COMMUNITY EVENTSo 9TH ANNUAL TURKEY TROT

• PROVIDE COMMUNITY RESOURCES ONLINEo CWO WEBSITE CONTAINS

INFORMATION ON LOCAL CAMPING SITES, TRAILS AND PLACES TO MOUNTAIN BIKE AND PADDLE BOARD

• ADVENTURE CLUB

Adventure ClubClearwater Outdoor

●APPEALING AND INTUITIVE WEBSITE

● BLOG● E-COMMERCE● ACTIVE ON SOCIAL MEDIA;

POSITIVE CONSUMER FEEDBACK

CWO OnlineClearWater Outdoor

2,309 likes

413 followers

Analylics by TOPSYComparing Tweets per day statistics form Fontana, Gordy’s, and Clearwater

PADDLEBOARD SPECIALISTSWESTPORT, WI

● Positioned as competitive, professional

● Focus on sales online● Nationally recognized name

2,525 likes

1,614 followers

COMPETITIVE & PROFESSIONALPADDLEBOARD SPECIALISTS

● Messaging is focused on competitions and professional paddleboarding events

● Hosts the Annual Midwest Paddle Fest (2012, 2013)

● Events include clinics, opportunities to Paddle with Pros

● Their name and brand is associated with success in the sport

● Has a professional paddleboard team

ONLINE SALES FOCUSPADDLEBOARD SPECIALISTS

● Extensive e-commerce○ SUPs, accessories, swimwear, etc.○ New online outlet○ Weekly rentals offered online

NATIONALLY RECOGNIZEDPADDLEBOARD SPECIALISTS

● Known through competitive circuits and national paddleboard events

● High SEO & Google ranking for paddleboard related searches○ Shown when searching for

paddleboard

Photo from Paddleboard Specialists’ Facebook page. Photo from Paddleboard Worlds in Chicago.

Windward Boardshop

Chicago, IL

● Old business with a new face

● Hub of social activity ● Strong online presence● Non-seasonal business 7,761 likes

247 followers

REDEFINING “BOARDSHOP”WINDWARD BOARDSHOP

● Purchased from previous owners, rebranded○ Young, hip vibe

● Renewed focus on customer service

● Social Center○ Groups and teams that meet

regularly○ Events

■ SUP gatherings● women

■ Sales Parties○ Just for kicks

● Make non-seasonal sales all year round

● WINDWARDBOARDSHOPS.COM ○ BLOG

■ HOW-TO ■ TIPS■ EVENTS

○ E-COMMERCE ■ WAY BEYOND BOARDS ■ NATIONAL

DISTRIBUTION ■ FREE SHIPPING

● SOCIAL MEDIA ○ FACEBOOK ○ TWITTER ○ YOUTUBE

CREATING COMMUNITY ONLINEWINDWARD BOARDSHOP

7,761 likes

247 followers

SWOT ReportPromotion of the “Tribe”

Strengths Weaknesses

Opportunities

Threats

SWOT Analysis

● No Direct Substitutes for the tribe

● Knowledgeable staff● Existing event opportunities● Local Presence

● Access to Geneva National Community

● The Tribe 365● Consumers are Role

Models

● E-Commerce● Established area

recreational groups

● Seasonal Population● Social media engagement● Promotion of the Tribe

Key Issues & Opportunities

ISSUES AND OPPORTUNITIES:

BRAND

● This is the first SUP fitness group in the area. ○ There is little direct competition to the tribe○ There is little understanding of what the tribe is

● We have to focus on education, branding, and then promotion.○ Skipping education or branding and going straight to

promotion of the Halau Tribe will result in an incomplete marking initiative.

ISSUES AND OPPORTUNITIES

CATEGORY: OUTDOOR RECREATION

● Snow sports are a large segment in the outdoor recreation industry (Mintel) ○ Account for 50% of equipment revenue ○ Highest participation rate of all sports for ages 6+

● We should consider including snow sports and activities as an aspect of FPC during the offseason○ Not including snow sports could result in potential Tribe

members migrating to competitor clubs who do offer these activities

CONSUMER

● The Feminine and SUP ○ Are key decision makers in sports apparel and

product retail ○ 2010 WSJ Report: 50%+ of SUP purchases were

made by women○ Strong promotional foundation in place for reaching

out to this demographic - Let’s build off of it!● Empty Nesters and their Spare Time (and Change!)

○ Fontana as a major hotbed for Older Adults ● The Spaces We Don’t Think Of

○ Dentist/Cello Lessons/Ballet Waiting rooms, Cafe signage boards

COMPETITION

● ClearWater Outdoor has an established group recreation club (Adventure Club)○ Teamed up with larger group (American Canoe Association)○ More off-season recreational opportunities

● We should focus on promoting the Tribe and obtaining members who can be influencers/opinion leaders.○ Not promoting could result in potential Tribe members

gravitating towards opportunities offered by well-known competitor recreational clubs

PRODUCT: THE “TRIBE”

● Primary Research Needed

● Is the Tribe willing to connect with other fitness groups?○ Competitor recreational groups have partnered with

larger organizations

● Clarity on the Infrastructure of the Tribe○ What resources can we leverage in our messaging?

“What Don’t We Know”

CONSUMER: “WHAT DON’T WE KNOW?

● The Tribe Demographic Composition● Spending Power of Non-Seasonal

Households○ Only 13.8% Population Doesn’t Own

Property● The Culture of the Empty Waterfront Nests

○ Open-Minded vs. Conservative○ Adventurous/Bold vs. Safe○ Hippies vs. Straight-Laces

CATEGORY: “WHAT DON’T WE KNOW?

● What are the specific trends of SUP in the Midwest?

● Most market research polls coastal regions● If we know the trends in the Midwest, we can

apply these more specifically to FPC● Knowing how paddle boarder demographics

and psychographics in Midwest differ from coastal regions can help us strategize how to target the Midwestern market

BRAND: “WHAT DON’T WE KNOW?”

● Halau Tribe demographic composition● Scope of the Tribe● What is the brand personality of the Halau

Tribe?○ Have a consistent theme among marketing

efforts○ Channel the voice of the tribe in social

media posts○ Create promotional materials that reflect

the voice of the Tribe

COMPETITION: “WHAT DON’T WE KNOW?

● Who are their target markets? Top consumers? Recreational group members?

● Are our target markets the same?● If the target markets and group members are

different, may be less of a competitor

Appendix

PRODUCT LINE REVIEW

Paddle Equipment

● SUP boards

● SUP paddles

● Kayaks

● Kayak Paddles

● Indo Boards

● Rowing Skiffs

The Tribe comes with great benefits for members

Tribe Package

• Halau Tribe t-shirt

• Halau Tribe pendant necklace

• 10-20% discount on regular priced items

• 30% discount on paddlesport rentals

• Free Access to tribe member events

BOAT CLUBGORDY’S LAKEFRONT MARINE

● Boat Club○ One time fee: $995○ Annual fee: $3,540 over 12 mo. payments○ “unlimited usage of 21 ft. Cobalt, unlimited

member guests, boat driving & safety instructions, insurance/maintenance/cleaning/storage, access to wakeboards, tubes, ropes and life vests, fast check-in/out” (website)

○ Targeted towards families - “Family fun-tastic,” “Boomers and Consumers”

Source/s: gordysboats.com, MOSAIC USA B09 and L41

● PARTNERED WITH AMERICAN CANOE ASSOCIATION

● MEMBERSHIP○ YEARLY MEMBERSHIPS: ADULT - $40,

FAMILY - $70○ WEEKLY EVENTS THROUGHOUT THE

SUMMER○ OFF-SEASON EVENTS

● Member benefits○ Discounted rentals during activities ($10/event)○ 10% off anything in-store not on sale or kayak○ 50% off CWO Midweek Boat Rentals○ “fun!”

● Group SUP activities● Partner with Body Logic to offer $10 yoga classes

every Tuesday and Thursday

Adventure ClubClearWater Outdoor

Source/s: clearwateroutdoor.com

SourcesAction and extreme Sports - US. (2011). Mintel. Retrieved from http://academic.mintel.com.ezproxy.library.wisc.edu/display/570755/

A special report on paddlesports. (2009). Outdoor Association Industry & Outdoor Foundation. Retrieved from http://www.outdoorfoundation.org/pdf/ResearchPaddlesports.pdf

Author unavailable. (2012, April 20). Boardsports market $19.6 billion in five years. Surfers Village. Retrieved from http://www.surfersvillage.com/surfing-news/56025#.UlOSFWSgkfr

Barrovick, Harriet. (2012, August 28). SUP grows up: stand up paddling hits uncharted waters. TIME. Retrieved from http://nation.time.com/2012/08/28/sup-grows-up-stand-up-paddling-hits-uncharted-waters/

Cullen, Jack. (2013, July 13). Midwest standup paddle festival highlights growing popularity of sport here. Wisconsin State Journal. Retrieved from http://host.madison.com/news/local/midwest-standup-paddle-festival-highlights-growing-popularity-of-sport-here/article_0e55bf7a-4c06-5d2b-9f64-6545c8f6f4c7.html

Gordy's Lakefront Marine - Fontana, WI & Fox Lake, IL. (n.d.). Gordy's Lakefront Marine - Fontana, WI & Fox Lake, IL. Retrieved October 8, 2013, from http://gordysboats.com

Helliker, Kevin. (2010, July 20). Surf’s up: the rise of stand-up paddleboards. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052748703720504575377023651849234.html

Standup paddling survey. (2011). SUP Magazine. Retrieved from http://c.ymcdn.com/sites/www.americancanoe.org/resource/resmgr/spp-documents/sup_demo_survey.pdf

SourcesThe outdoor recreation economy. (2012). Outdoor Association Industry. Retrieved from http://www.outdoorindustry.org/pdf/OIA_OutdoorRecEconomyReport2012.pdf

Wallack, Roy. (2012, July 28). A rising tide for stand-up paddleboarding. Los Angeles Times. Retrieved from http://articles.latimes.com/2012/jul/28/health/la-he-paddleboard-popular-20120728

Outdoor Clothing, Equipment, Gear for all your Adventures. . (n.d.). Outdoor Clothing, Equipment, Gear for all your Adventures. . Retrieved October 8, 2013, from http://www.clearwateroutdoor.com/

Fontana Paddle Company Facebook Page https://www.facebook.com/fontanapaddleco Fontana Paddle Company Twitterhttps://twitter.com/FontanaPaddleCo Halau Tribe Facebook Pagehttps://www.facebook.com/pages/Halau-Tribe/426870064070326 Halau Tribe Twitterhttps://twitter.com/HalauTribe