Outward Bound Adventures,dba OBA Inc.* Nature-Based Experiences and Self Mastery Skills for Underserved Youth The “New OBA” Strategic Plan By Wendell E. Hall Natural Knowledge, LLC January 2010 * OBA is a 501(c)(3) private non-profit charitable organization
“We” Are One…Just One “Natural Knowledge” is my consulting company I am a Marketing professional with over 28 years of marketing experience with major package goods companies such as ConAgra Foods, Quaker Oats and DowBrands I recently crafted a marketing position for a new Non-profit in Dallas, Heart of a Warrior Foundation I practice a brand of marketing called “Mother Nature Marketing” Follow/Friend me at:
My Blog at Mather Nature Marketinghttp://wendellhall.wordpress.com
Professional Bio ConAgra Foods 1995 to 2007 Senior Marketing Manager (Director Organizationally) -- Delivered top-line growth for 10 of 12 years for ConAgra Foods$120M membership warehouse club channel.
The Quaker Oats Company 1990 to 1995 Product Manager -- Leveraged Quaker brand equities to provide a family of consumer-recognized wholesome snacks DowBrands Inc., a Dow Chemical Co. SBU1980 to 1990 Brand Manager -- Was the key strategic leader for the Ziploc Storage Bag brand. DowBrands Inc.’s flagship $80M brand
Education Continuing Education -- Executive Program in Brand Strategy, Northwestern University, Kellogg Graduate School of Management Bachelor of Science in Business (Marketing Concentration), Indiana University, Kelley School of Business
Community Service Bio Board Member, Heart of a Warrior Charitable Foundation (2007 – Present) Executive Director/CMO, Heart of a Warrior Foundation (2007 – 2009) Safety Committee Member, Outward Bound (2006-2009) Course Leader, Outward Bound Adventures (1997-Present) Board of Directors, Outward Bound Adventures (1997-2008) Instructor and Mgmt. Committee Member, Sierra Club-Angeles Chapter Wilderness Training Course (1999-2006) CPR/First Aid Certification Coordinator, Sierra Club-Angeles Chapter (2001-2005) Volunteer Leader and Indy Board “Committee” Member, Young Life Inc., (Cumulative 18 years of service in 4 Cities) - Indianapolis, IN / Dallas, TX / Chicago, IL / Pasadena, CA
For More Info See www.WendellHall.vpweb.com
Also Check Out My Blog at http://wendellhall.wordpress.com/
OBA Situation Assessment OBA is virtually a 50 year old local LA institution providing outdoor education and experiences to local underserved youth In 2006 OBA agreed to merged with OB As part of the merger agreement an “unwind” provision was created in the event that the 2 cultures were not compatible In November 2009 OB exercised the unwind provision
As of December 31, 2009 we are on our own “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” -- Winston Churchill
The OB Unwind = Opportunity Our separation from OB creates uncertainty and stress, but opportunity to: Strengthen the OBA brand Correct frustrations from the past Incorporate best practices from OB Serve our audience our way, unencumbered Emerge better and stronger than ever
Time Critical Needs
A History of Successful Re-branding Rebuilding the Brand is Job #1 Kentucky Fried Chicken KFC Pittsburg Plate Glass PPG Southwestern Bell SBC Gatorade - currently in “transform” process G
Who Should We Become… Outward Bound Adventures (dba,OBA) Becomes…… Simply branded as… OBA “Now New and Improved”
Rationale For Rebranding Negatives of “OBA” Brand Positives of “OBA” Brand Some in LA/Pas. remember what OBA stands for “Outward Bound” has high name awareness and broad recognition OBA already has local and outdoor brand awareness New audience, no ties to the original name Eliminates confusion between us and OB Reduces the need to explain the separation from OB “dba, OBA” is cumbersome OBA is crisp and memorable Clear, single communication message Simplifies branding efforts
How to Answer OBA Questions… Q- What does “OBA” stand for? A- We were founded as Outward Bound Adventures 50 years ago Q- Are you a part of Outward Bound? A- NO Q- Were you formerly part of Outward Bound? A- Yes, but not currently Q- Does “OBA” stand for anything now? A- Yes, we are still “Outward Bound Adventures”
Immediate Rebranding Communication Steps (First 60 Days)
Example of Effective E-Blast Strategy
Example of a Good Website
Example of Contemporized Logos ?
Strategic Messaging For the “NewOBA”
“New OBA” Vision Vision: OBA will be known for service to diverse underserved youth and their development into responsible, participative and productive leaders and citizens of the world. OBA will teach youth to care for natural environments and social communities in-need around the world, because we are all part of humankind in an interrelated, bio-diverse global community.
OldOBA Mission Purpose -- dedicated to providing challenging outdoor environmental experiences to urban youth. Community – provide multi-ethnic, low-income students in Los Angeles area inner cities with year-round programs of challenging outdoor environmental learning activities. Education -- using mountain, dessert, coastal tide pools and other locals as tools to educate youth about the natural environment and outdoor careers Self-esteem -- challenge youth to learn more about themselves through adventure experiences. Not to be read now. For reference only.
“New OBA” Mission Mission: OBA is the community service organization that serves underserved urban youth in Southern California and other select cities, and their families, by promoting self empowerment, dignity, accountability, community commitment and environmental stewardship. By seeking to establish deep relationships with participants, OBA strives to advance cultural, class and ethnic diversity and ensure equal access and opportunity for all to enjoy wilderness environments. Furthermore , OBA will upgrade student academic, social and self mastery skills that are applicable in all aspects of life, including: school, professional, outdoors, as well as in their home communities.
“New OBA” Purpose Purpose: To serve underserved urban youth and their families, to promote self empowerment, to inspire personal accountability, to teach a greater appreciation of the wilderness, self, family and community through meaningful contact with and exposure to nature.
“New OBA” Positioning Brand Statement: For underserved urban youth OBA is the fun, adventurous way to develop into productive peer community leaders and responsible citizens of the world. Brand Promise: Through use of outdoor environments, OBA will create experiences and build relationships that will positively impact participant’s lives.
OBA’s Old 5 Areas of Focus Eco-literacy/Environmental education Teambuilding skills Outdoor careers and practical experience Challenging hikes/activities “Leave-no-Trace” wilderness principles Not to be read now. For reference only. Old Objectives
Promotes group involvement, personal challenge and inspires youth to find positive, peaceful solutions to problems.
Teach basic resource management, conservation and ecological concepts.
Promote teambuilding and leadership skills.
To help youth discover themselves and understand their role as responsible members of their community.
OBA’s “New” Five Programmatic KeystonesCreated By OBA Staff Eco-Literacy Social Action Public Speaking Community Organizing Collaborative Decision Making Community Service: Urban and Wilderness Self Mastery Goal Setting Values Clarification Prejudice Reduction ICTSOLO Meditation Physical Challenge
Family Communication Skills
Family Goal Setting
Employment and Life Skills
Job Readiness Preparation
Outdoor Career Exposure
Differences – Old vs. New Drops any reference to “Low Income”, which is a negative Expands geographic focus from LA to SoCal and other select cities Stated inclusion of “families” Broadens “education” to mean total academic proficiency, not just eco-literacy Specifically spells out an old tenet of OBA that was mere implied before – to “build deep relationships” Greater emphasis on bringing learned skills back to their home community
OBA S.W.O.T. Analysis STRENGTHS
50 Years of Success/History
Strong Community, Local Govt. relationships and So Cal Outdoor Connections
Large Alumni Following
Strong, Proven Programming
Proven Fee-for-Service Model
Weak Financial Footing / Cash
Weak Economy for Development
No Board Members with Direct Company Financial and/or Media Resources
ED wears too many hats and spread too thin
Social and Science based programs
Community, Local Govt. relationships already in place
Plan to Relaunch OBA
Plan for New Revenue Streams
OB Expected to Enter So Cal
Crowded Social Service field vying for reduced dollars
No ED succession plan in place
We Are Clearly a Contract Driven Org.
Mitigation of Weakness/Threat As noted in the SWOT we depend on the ED for most of the elements ED is spread too thinly A Two Part Solution….
Business Unit Director (BUD) Part 1: To free the ED to maximize program funding and development, I recommend a “Bus. Unit Director” (BUD)
CMO - Brand Building for the “New OBA”
Oversee Day-to-Day Ops
Build New Bus. and Fee-for-Service Revenue Streams
(This is NOT philanthropy development)
Face to the Client
Manage all Financials
Special Reports per Board Requests
Development Manager (Part-time) Part 2: To free up the ED to maximize his efforts, I recommend we replace the “Development Mgr.” position
Corporate & Major Donor Philanthropy
Annual Fund Raising Events
Proposed OBA Org. Flow
Revenue Sources Corporate & Major Donor Philanthropy Disadvantage – Extremely weak economy Fee-for-Services (Client Agencies) Effective source of revenue but diminishing returns Donation Campaigns OBA friends are loyal but not significant givers Grant Writing Major grant giver portfolios are extremely depressed Annual Fund Raising Events Unproven and risky Plus -- A New Revenue Stream
A New Financial Paradigm “Those who do not remember the past are doomed to repeat it.” George Santayana A New Revenue Stream
Sister Company – “NewCo” Enterprises
Summary The Unwind created new opportunities Relaunching the OBA brand is key to success A simple, clear brand will minimize confusion Need to immediately communicate the “New & Improved” OBA brand message to our stakeholders Synergy across all communication vehicles is a must to maximize the brand impact ED needs to be able to “focus” on key relationships for development and financial sustainability A BUD is a solution for making the ED more effective A New revenue stream outside of traditional philanthropy and grants is needed Other 501(c)(3)s have successfully employed a sister company who’s purpose is generating income for the service agency
Recommendations Immediately close gaps left by the unwind Board development that adds members that can activate financial resources Activate the BUD Strategy to oversee critical operating and marketing needs Employ a part-time development mgr. Activate the “Sister Co.” concept ASAP
Take 10: Intermission
Welcome back to… A New Presentation Clear your mind of the prior presentation. Think “NEW”.
OBA Gets a “Buddy”… Now it Needs a “Sibling” Introducing… The“NewCo” Concept
THE BUSINESS CASE
The “NewCo” Concept “NewCo” is merely a placeholder for the company name that will be chosen One of NewCo’s main purposes is to generate revenue that will help to financially support OBA The purpose/mission will be clearly stated in all marketing communications for transparency and altruistic appeal NewCo may be a for-profit or a non-profit company, depending on the analysis of tax favorability vs. profit upside NewCo board will be the Newco CEO, the OBA ED and an OBA interlocking directorate (a small subset of OBA directors, probably 3 to 5)
The “NewCo” Concept Continued NewCo will target adults, age 18 to 60, that have a love for active outdoor experiences, with financial means NewCo will offer vacation Excursions Excursions will be multi-day trips to compelling outdoor locations Locales will be in attractive eco-vacation destinations or challenging outdoor experiences Excursions will be non-technical Excursion will rely on a supply chain of professional outfitters or guides as contractors
Types of Excursions Excursions Can Be: Thru-hiking on the PCT (The Main Attraction; See Appendix) Hut-to-hut hiking Backpacking in National Parks Mule packs Paddling trips International trekking Rain Forest Eco-tours Photo Safaris Sailing cruises WFA/WAFA training courses Excursions Will Not
Not be technical
Not include extreme conditions
Not have >3rd class exposure
Example #1 - BCM & SFS
Example #2 - BAWT & CFC
The “NewCo” Vision NewCo will be widely known as the outdoor excursion and eco-tourism outings provider that offers a variety of the most fulfilling outdoor experiences that delight adult vacationers.
The “NewCo” Purpose & Mission Mission: NewCo will provide unique outdoor vacation experiences for its clients while generating revenue that supports OBA’s “unrestricted” financial needs for operations, overhead and programming. Purpose: If For-profit: To provide a reasonable return to investors/owners To provide incremental funding to support OBA operations in serving underserved youth and their families.
The “NewCo” Brand Position Brand Statement: For adventure vacationers NewCo will add unparalleled comfort and convenience to the outdoor experience without robbing them of their outdoor adventure. Brand Promise: We will be the outdoor concierge for adventure vacationers.
THE EXECUTIONAL PLAN
The 4Ps of Marketing Price
We will price excursions on a cost-plus markup basis
Prices will be within 15% of market pricing for similar programs
Value proposition will include the “altruistic” benefit of helping kids
Unique Types of Excursions: Thru-hiking, Trekking, Mule packs, Sailing, Paddling, Training trips, Eco-vacations, etc.
Our packaging will be the “hands-on value added attention” given to each client, for each excursion
We will be the Outdoor Concierge
We will offer loyalty discounts or promotional offers on multiple excursion bookings
Possible NewCo Names
Adventure Excursions, Because Kids Matter
Trekking Toward New Horizons
Walkabout for Kids
Bright Sunrises Excursions
Option: We could operate under the Natural Knowledge, LLC banner initially New ideas for names WELCOMED!
Business Startup Processes Select Name Incorporate Logo Design Phone System Website/Email/Domain Printing (business cards, letterhead/envelopes, signage, etc.) Bank Account(s) Board Development (Interlocking) Secure Startup Financing Augment Business Plan Finalize Marketing/Media Plan Develop a rolling 2 year Excursion Program schedule Vet the supply chain and test programs Contract Supplier services and deliverables Execute Media Strategy D&O and Liability Insurance
Program Goals Conduct 12 Excursions in the first 12 months working up to 18 per year by year 2 …or 36 by year 5 Define and vet the supply chain to support each type of excursion in year 1 Have 2 suppliers for each excursion type by year 3 Generate $33k for OBA in year 1… growing to $135k by year 3… $200k per year by year 5 Establish at least 3 promotion partners that supplies appealing products and/or services by year 1 Establish a relationship with at least 1 “trusted” travel agency partner to recommend to our clients for their travel plans before operations begin
Year 1 P&L - Lo/Med/Hi12 Mo. Forecast Based on trips at avg. $2,500 per Est. no “Multiple Trip Discounts” yr. 1 Based on trips at $1,000 GP Margin Based on avg. $1500 Cost $500 retail value, at 50% wholesale cost Seed money needed for CPC advertising Based on trips at $1,000 GP Margin . Add’l. investment (See Budget Details in the Appendix) Target 20% of PC for Salaries. . Estimate of 28% Tax rate after deductions . 100% of PBT to OBA up to $200,000, then a percentage over the target.
Year 3 and 5 P&L Forecast .
Assumes 20% disc. on 1/5 & 1/3 of the yr 3 & 5 revenue, respectively
Based on cost reduction from yr 1 to $1200 per person
Minimum seed money needed (CPC)
Increased GP Margin to $1,300 per trip
See Budget Details in the Appendix.
Target 20% of PC for Salaries.
Funds that could go to OBA if Non-Profit
100% of PBT to OBA up to $200,000, then a percentage over the target.
Next Steps OBA Board to approve the 2010 budget including the BUD & Devel. Mgr. positions OBA Board to approve an official affiliation with NewCo using OBA’s mission as a driving purpose of NewCo Agree on tax status OBA ED to determine financial investment into NewCo and gain Board approval.
Final Thought "The point of…being an optimist, is to be foolish enough to believe the best is yet to come." -- Peter Ustinov
Year 1 Budget
PCT Thru-Hiker Facts
The Pacific Crest Trail (PCT) goes from Mexico to Canada through California, Oregon and Washington
As the crow flies the distance between Mexico and Canada is over 2,500 miles
The PCT crosses the world-famous San Andreas Fault three times.
It pass through six out of seven of North America's eco-zones including high and low desert, old-growth forests, rain forests and arctic-alpine
The PCT passes the three deepest lakes in the nation; Lake Tahoe (1,645 feet), Crater Lake (1,932 feet) and Lake Chelan (1,149 feet)
within driving distance of San Diego, Los Angeles, San Francisco, Sacramento, Portland, and Seattle,
Offers the best of the West:
The Mojave Desert
the Sierra Nevada and Mt. Whitney
Yosemite National Park
Marble Mountain and the Russian Wilderness in Northern California,
The volcanoes of the Cascades including Mt. Shasta and Mt. Hood, Crater Lake, Columbia River Gorge, Mt. Rainier, and the remote Northern Cascades.