Montana Whitewater Adventures

Marketing PlanCreated by:

John DickersonKristen Rehbein

Kari Bostick

Mission StatementThe family at Montana Whitewater Adventures is committed to providing the ultimate rafting adventures in the most scenic, wild rivers of Montana. We are dedicated to providing outstanding customer service. Our customers will be treated with a once in a lifetime adventure. Combined we have over 75 years of rafting experience and are committed to safely getting our customers home with the memories to last a life time. With customer service being of utmost priority, we extend our offerings to patrons by partnering with other local business to create a once in a life time adventure. We work with zip-line Montana and Quinn’s Hot Springs to bundle our trips.

On average 500,000 thousand people visit Missoula each year. With a population over 155,000 in Missoula and the surrounding community we have ample opportunity in this market. Our survey results determined that 32% of people polled, were eager to raft the beautiful rivers surrounding Missoula. The total market potential is well over 200,000 people. Our objectives are:•To create a fun, action packed experience for our customers. •Provide outstanding customer service and grow our customer base by word of mouth referrals. •Sell 12,000 raft trips, at a rate of $150.00 per person.•Utilize connections within the community, by booking group trips. Group trips should comprise at least 10% of total bookings.

Objectives

Opportunities• Family uses connections with local business, summer camps and schools for group trips• Expand top-selling trips more days a week• Provide exciting, affordable family mini-vacations during hard economic times•Based in tourist area

• Newly purchased cutting edge, finest equipment available today• Starting massive advertising campaign with a committed $30,000.00• Over 75 years of rafting experience combined• Differentiation from competition by partnering with other local business to create a once in a life time adventure• Lower operating costs with family owned storage facility

Strengths

Weaknesses

• Higher price point

• New to market

• Competing with over 20 other rafting companies

Threats

• Environmental – depend on the weather, natural disasters (fire, flooding, etc.)•Permit availability•Competition prices are lower•Competition with established and loyal clientele

Potential Market SurveyThe following questions were asked at Five locations in Missoula Montana:

Have you ever rafted near Missoula, MT? 38/50 people said they had rafted near Missoula. (76%)

Do you intend on rafting during the 2013 season near Missoula, MT? 16/50 people said they intend on rafting in the 2013 season you. (32%)

Did you raft during the 2012 season near Missoula, MT? 12/50 people said they rafted last season. (24%)

Would you be interested in rafting the rivers near Missoula, MT? 21/50 people said they were interesting in rafting near Missoula MT. (42%)

Surveyed 50 people:• 10 at Wal-Mart• 10 at Worden’s Market• 10 at U of M – University Center• 10 at AT&T• 10 at Southgate Mall

Survey conducted by John Dickerson

Population Statisticsand POTENTIAL Market Share

• Missoula County Population: 110,138• Ravalli County Population: 40,450• Mineral County Population: 4,593• 10 Million Tourist per year through Montana. On average

500,000 people travel to Missoula each year. Total population: 655,181 655,181 total population / 32% of population that intends on rafting

= 209,658 total market potential209,658 market potential / 12% objective market share for Missoula Whitewater

= 25,159 customers in our market share.Running at capacity, we have 10 rafts holding 8 people per raft

= 80 people/day 80 people per day x 5 months of the season

= 12,000 people we have to take rafting to meet the budget

TargetResident Market - 140,000 people. Renting rafting rental equipment Large student population ( 15,600) at University of Montana. Offer students end of school year rates.

Business Market –thousands of area businesses Flyer campaign to local businesses in the Missoula and surrounding county Offer group rates. As the number in your party increases, the rate decreases.

Tourism Market - one million visitors annually. Feature articles in the Montana Magazine, Outside Missoula and Montana Outdoors.  Combined the magazines have over 150,000 subscribers.

Affiliate Businesses-work with two large existing organizations with large client base. Pamphlets will be on hand at Missoula Zip Lining and Quinn’s Hot Springs.

Brand Positioning Statement

Experience the excitement with Montana Whitewater Adventures.

Come play with us!

Providing safe, unforgettable experiences, with over 75 years of

rafting experience.

Decision Making ProcessIdentify the Problem• Consumer needs to experience adventure on Montana’s Rivers.Gather Information• Consumers will gather information via word of mouth, yellow pages internet and newspapers.Evaluate AlternativesConsumer alternatives are:

Other white water rafting companies Other adventure companies No adventures

Make Decision• Consumers will choose Montana Whitewater Adventures because of the diversity of our product. We are family owned and operated invested in the Missoula economy.Evaluate Decision• Consumers will know they chose the right product because of the personal safe adventure we take them on. The quality of the service will create positive word of mouth thus increasing repeat business.

Means End Chain

Pay for Rafting

Pay too much money

Less money for

other things

Feeling of Guilt

Enjoyable Experience

Worth the Money

Valuable Family

Memories

Promotion• Large student population , offering students end of school year rates.

• Resident Market consists of 140,000 people, offering rental rafting equipment. • Capitalize on the tourism market  by featuring articles in the Montana Magazine, Outside Missoula and Montana Outdoors.  Combined these magazines reach over 150,000 subscribers.

• Flyer campaign to area businesses in Missoula and surrounding areas to solicit group trips as team building trips.  • Offer group rates; as the number in your party increases, the rate decreases.

• Work with affiliate businesses to reach out to their large client base. Pamphlets will be on hand at Missoula Zip Lining and Quinn’s Hot Springs.

Product and PLC• Product Life Cycle – Montana Whitewater Adventures is entering a market in the mature stage of the Product Life Cycle. There is strong competition in the area with companies attempting to position their strategies to develop a competitive advantage.• Product:

Brand positioning statement – Montana Whitewater Adventures provides a unique exhilarating rafting experience by utilizing our knowledge of local rivers to ensure clients have a memorable day.

Perceptual MapShowing Four Water Recreation OptionsGuided Rafting• High on Safety• High on Social• Low on Scheduling

Flexibility• High on Equipment

Quality

Guided Kayaking• High on Safety• Moderate on Social• Low on Scheduling

Flexibility• High on Equipment

QualityIndependent Rafting• Safety depending highly on

experience• High on Social• High on Freedom of

Scheduling• Low on Equipment

Availability (own or rent)

Independent Kayaking• High on freedom of

schedule• Moderate on Social• Safety depending highly on

experience• Low on Equipment

Availability (own or rent)

Place• Convenient location in Missoula, MT. Clients are then bussed to

launching sites. • Rafting equipment stored at business location• Administrative activities conducted at business location

• Website Accessibility• Easy to navigate• Scheduling and contact information• Guide information including experience and safety

qualifications• Channels of Distribution

• Direct• Collaboration with Quinn’s Hot Springs Resort and Montana

Zip Lining• Launching sits at Montana Fish Wildlife and Parks designated

fishing access sites.• Commercial permit required• No maintenance costs• Increased exposure to public

CostsInitial Investment $250,000.00

Equipment

Marketing

Operating Costs

Reserves

Equipment Costs10 Rafts at $3,975 each; total cost $39,75070 Paddles at $130 each; total cost $9,100100 Helmets at $50 each; total cost $5,000100 Life Jackets at $110 each; total cost $11,0001 Bus providing transportation; total cost $7,000

Total Equipment Costs $71,850

Marketing CostsRadio, television and magazine advertising campaign • Advertisement development budget $15,000 • Purchase of Ad time budget $ 10,000

Pamphlet and Flyer Disbursement • Delivery fees budget $5,000

Total Marketing Budget $30,000.00

Operating Costs

Gasoline per month $1,400 • $3.75 per gallon factoring 350 gallons per week Salary per month $8,000 • $10.00 per hour for 8 part time employeesInsurance per month • Includes auto, equipment, and liability insurancePermit Costs per month $200

Total Annual Operating Costs $53,000

Price

Cost of trip per person $150/weekend rate • Must book 75 people each weekendCost of trip per person $120/weekday rate • Must book 30 per weekCost of group trips more than 8 people $100 • Must book 10 per week

Total Income Annually $457,000

Final RemarksWe will focus on providing the best customer service in the industry by

holding ourselves to the highest standards and conducting business

with integrity and pride, while staying within our budget.

In time, Montana Whitewater Adventures will be the best rafting

company is Western Montana.

Resourceshttp://www.strategicmediainc.com

ceic.mt.gov/Census2010.asp

http://www.deq.mt.gov/ClimateChange/Commerce/Tourism/tourism.mcpx

Chet Crouser, Fishing Access ManagerMontana Fish Wildlife and Parks406.542.5562

Resources ContinuedCost Analysis www.nrsweb.com

www.paddlesandoars.com

www.outdoorplay.com

www.bargainbusnews.com

http://aldebaranwebdesign.com

http://windowscleaningresources.com