Full marketing plan, of which I served as team captain, for innovative new product. Includes competitive product, company, trend, niche, utility, and life cycle analyses, among many others, as well as pricing and promotional plans.

1. Never Flat
Mary Lopez – Chief Executive Officer
Toni Alugbue – Chief Performance Officer
Spencer Castillo – Chief Financial Officer
Trenton Templeton – Chief Operating Officer
John Collins – Chief Innovation Officer
1

2. Energy Return Wheel
2

3. Overview
 Part One - Assessment
 Selection of Product
 Target Industry
 Target Niche
 Part Two – Action




Product Plan
Distribution Plan
Pricing Plan
Promotion Plan
3

4. Product Selection
John Collins
4

5. Energy Return Wheel
 Replaces inflated tubes with a rubber tread stretched
over carbon nanotube reinforced composite rods
 Conserves potential elastic energy and converts to
forward motion
5

6. Comparative Product Scorecard
10
Never Flat Energy
Return Wheel has the
highest score (188.5/9.4)
Key advantages
• Newness/Trendy
• High Value/Low cost
• Durability
We can win with the
Energy Return Wheel
6

7. Utility Analysis of Industry
10
Never Flat has highest score
(188.5/9.4)
Biggest advantage in form utility
• Value in use vs. cost
• Ease of use
Key superiority in differential
advantage
Unique and Trendy
Never Flat can win in its
industry
7

8. Trend Analysis
Once again Never Flat
has a large advantage
with a ratio of 0.96
Biggest advantage is
in technology and
socially/culturally
Based on trends we
can win with our
product
8

9. Can We Win With this Product?
Never Flat
Energy Return
Wheel
Test
Utility Analysis Total
Redline
Freaky X
Specialized
Ground Control
Trek Bontrager
All-Weather
Giant PX-1
190.5
107
111
102
121
9.52
5.35
5.55
5.1
6.05
Trend Analysis Total
29/30
13/30
13/30
13/30
11/30
Trend Analysis Ratio
0.96
0.4
0.43
0.43
0.36
Utility Analysis Average
Never Flat is the best option
Product is innovative, trendy, high value
in use/low cost, cultural advantage
Industry potential is high
High scores demonstrate we can win
with this product
9

10. Target Industry
Trenton Templeton
10

11. Competitive Product Scorecard
Highest score is the
Never Flat Energy Return
Wheel (190.5/9.525)
Key advantages in High
value vs. cost,
trendy/newness, and life
cycle
We can win with this
product
11

12. Target Industry
Oligopoly
All competitors in maturity or decline
Attack Trek – decline and largest
market share
Never Flat is the only company in
introduction and marketing
We can win in this industry
12

13. Industry Triangle
-Sports Authority, Big 5, REI
-Performance Bike, Mom and Pop Bike Stores
Trek has the largest market share and is furthest into decline
Trek has the largest market share and is furthest into decline
13

14. Niche Selection
Spencer Castillo
14

15. Micro Matrix
The Energy Return Wheel would be most
valuable to competitive bikers and triathletes
15

16. Triathlete Demographics
Category
Description
Age
38
Ethnicity
88% White
Income
$126,000 1
Male : Female
60:40
Hours of Usage (per week)
12.1
Dollars per year
$4000
Marital Statues
66% married
Reason for Participation
95%- “For the personal challenge”
87%- “To stay in shape”
Number of Participants
1,992,000 (in 2011)
Magazine Subscription percentage
64%
Main part of the country
California, Florida, and Colorado
Triathletes are
married, middle
aged white men
with significant
buying power
2
1 http://www.usatriathlon.org/about-multisport/demographics.aspx
2
http://www.reuters.com/article/2013/07/29/us-fitness-triathlon-idUSBRE96S08H20130729
16

17. Utility Bundle
Never Flat has competitive advantage in form, time and information
17

18. U.S. Clear Days
Southwest has the most optimal weather for the use of
the Energy Return Wheel
18

19. Triathlon Locations in Southwest
California:
1st in triathlon
participants1
2nd in USA Triathlon
adult membership2
At least 50 triathlons
per year3
1http://www.usatriathlon.org/about-multisport/demographics.aspx
2http://www.sfia.org/reports/113_Triathlon-(Traditional-Road)-Participation-Report-2013
3Simplymaps.com/triathlons
19

20. Product Plan
Toni Alugbue
20

21. Primary Goal
At least $10 million in sales with $4
million in revenue (at a 40% profit
margin) by the end of the first fiscal
year
21

22. Secondary Goals
• Become the leader of innovative bicycle tire technology
by patenting at least one new technology per year
• Become sponsor of USA Triathlon and USA Cycling
teams and present at all major competitions to
promote tire
• Sell 3 tires per store per day (based on unit price of
$300 at 56 stores)
22

23. Strategy
• Differential Advantage: maintain a high level of differential
advantage by investing at least 25% of sales revenue to
research and development
• Brand loyalty: maintain a high level of communication with
niche market of competitive cyclists through associations,
magazines, and competitions
• Sales management: Monitor daily sales by store and offer
incentive (larger percentage of sale) for increased sales. If daily
requirement is consistently not met, pull product from store
23

24. Trend Analysis
Product
Launch StageEnergy Return
Wheel
Growth Stage-High
Performance Tire
Focus Trends
1.
2.
3.
Maturation StageFitness Tire
Fall Out Stage-High
End Performance
Tire
New Life Cycle
Stage-Never Flat
Bicycle
1.
2.
3.
Technological Innovation-Unique energy return system allows for greater speed and performance
Economic-Long lasting and durable, it will allow customers to cut down on their spending
Time-Users can spend less time in maintenance since it is mostly unneeded.
Technological Innovation- Use of an imbedded chip is revolutionary
Connectivity-Chip will allow information about the tire, terrain, and speed instantaneously
Green Movement-Introduction of new green tire recycling program
Technological Innovation-First tire to keep track of fitness related statistics
Connectivity-Tire will provide users with more information than ever before
Health and Fitness-Tire will provide information on Heart Rate, Calories, etc.
Competitive Edge-Self Coaching application will allow users to train better than competitors
Technological Innovation-Lighter and thinner than ever before
Social and Cultural-Embedded chip will now be able to send information and stats directly too social
media
Convenience-Chip will now have bike map as well as tire performance information
New Technology-Lighter frame with rechargeable battery for energy boosters
Competitive edge-Highest performing bicycle yet
Fitness-Rechargeable battery will allow people to train longer and more effective
Never Flat will focus on the growth stage for distribution and advertisement purposes
Technological innovation, Connectivity, Green Movement
24

25. Maslow’s Hierarchy
The Energy Return Wheel satisfies self actualization, esteem, and safety
www.psychology.org/maslow.html
25

26. Distribution Plan
Trenton Templeton
26

27. Distribution Plan
Product Goals
Primary Goals
-Achieve $10 million in sales at a 40% profit margin
-Sell three products per day per store at a price of $300 per
product, with a total of 56 stores
Secondary Goals
-Sell a total of 56,000 products in the first year
-Make 20% of sales through the web to reduce expenses
associated with selling through retailers
27

28. Strategy for Distribution Plan
Distribution
Plan
• Web Sales
20%
• Just-in-Time
• Competitive
Advantage: 2
day shipping
Coverage
• Store
Locations:
Satellites
outside of
big cities
Store
Types
• Specialty
Shops
Transport
Promotions
• Companyowned
Trucks
• Sponsoring
Matt Chrabot
• Demos at
triathlons
28

29. Distribution Channel
Make 20% sales through web
Sales
Stores
(80%)
Retailer
Web
(20%)
Consumer
• Triathletes spend 3 hours per day on
email/web-surfing1
• Get the product to the consumer
quicker
Make 80% sales through
stores
• Specialty bike retailers command
52% of market sales in terms of
dollars2
Consumer
1http://www.usatriathlon.org/about-multisport/demographics.aspx
2http://nbda.com/articles/industry-overview-2012-pg34.htm
29

30. Summary
Summary
Unit price
Sales per day per store
$300
3 tires
Required units sold per year
56,000
Number of cities
30
Number of states
10
Number of warehouses
2
Transportation
Company owned trucks
% of sales through web
20% of total sales
Distribution strategy
Selective
In order to reach $10 million in sales, Never Flat will utilize
• Selective distribution
• 20% of total sales through web
• Sell three tires per day per store
30

31. Pricing Plan
John Collins
31

32. Pricing Plan Goals and Strategy
Pricing Goals
Primary Goals
-10 million in sales at a 40% profit margin
-Sell 40,000 units in first 182 days at a price of $300 to break
even, assuming costs of 60%
Secondary Goals
-Gain a market share of 10% in first year and 50% by maturation
-Make 20% of sales through the web to reduce expenses associated
with selling through retailers
Strategy
Description
Skim Strategy
Enter the market in the introduction stage at a
high price to attract innovators and early
adopters
Pull Strategy
Advertise directly to triathletes - more likely to
respond to recommendations from other
triathletes1, as opposed to retail advertisements
1http://www.runskiprun.com/demographics-of-triathletes/
32

33. Composition of Sales and Break
Even Analysis
Retail Sales
• $16,000,000
Web Sales
• $4,000,000
Total Sales
• 40,000 units
3 units/day/store
Total Sales
Cost
Break Even
Costs
% Fixed
Total Fixed
Costs
% Variable
Variable
Cost per unit
Unit Sales to
break even
Unit Sales
per day to
break even
Unit sale per
day per
store
Break Even Analysis
Retail
Web
$16,000,000
$4,000,000
.60
.60
$9,600,000
$2,400,000
Total
$20,000,000
.60
$12,000,000
.60
$5,760,000
.60
$1,440,000
.60
$7,200,000
.40
$120
.40
$120
.40
$120
$9,600,000/$300=
32,000 units
32,000 units/182
days= 175 units
$2,400,000/$300= 40,000 units
8,000 units
8,000 units/182
219 units
days =44 units
175 units/56
stores = 3
units/day/store
-
-
33

34. Pricing Plan Over Life Cycle
Second product
release to Triathletes
will gain market
share and brand
recognition
$1500
34

35. Summary
Pricing Goals
Primary Goals
-10 million in sales at a 40% profit margin
-Sell 40,000 units in first 182 days at a price of $300 to break
even, assuming costs of 60%
Secondary Goals
-Gain a market share of 10% in first year and 50% by maturation
-Make 20% of sales through the web to reduce expenses associated
with selling through retailers
Amount
Total unit sales per day
219 units
Total daily revenue
$65,700
Revenue in six months
$11,957,400
Revenue in one year
$23,914,800
35

36. Promotion Plan
Mary Lopez and Spencer Castillo
36

37. Goals
Primary
Goals
Secondary
Goals
• $10 million in sales
Achieve 60% product
awareness in target
niche of triathletes
25,000 likes on
Facebook and 10,000
followers on Twitter and
Instagram
37

38. Strategy
Achieve sales of 3 units per day per store
Create brand loyalty through strong word-of-mouth campaign
and publicity at cycling events
Engage consumer through interactive social media
campaign
Enlist support of spokesperson to back product’s features
Maintain differential advantage throughout product’s life
cycle
38

39. Media Mix
Thousands of Dollars
35
30
25
Radio - 4%
20
Billboards -13%
15
Magazines -18%
10
Web -25%
5
Social Media -40%
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
0
Centered towards the beginning of cycling season
Geared towards web and social media
• Triathletes spend 3 hours per day on email/web-surfing1
1http://www.usatriathlon.org/about-multisport/demographics.aspx
39

40. Channel Mix
Introduction
Growth
Maturation
Word of
Mouth
Spreads through talk93% of triathletes gave
purchase advice to 12+
people in past year1
Spreads through talk
about our product at
competitions
Publicity
Matt Chrabot -Target
spokesperson who is
an avid, innovative
cyclist with committed
fan base2
Niche magazines such Explore other venues
as
such as publications
Bicycling, Triathlete, a
nd USA Triathlon
Advertising
Highlight form, safety,
and time saving utility
Introduce new
features as they
become available
Personal
Selling
Set up tents at
triathlons showing the
technological
advantages of Never
Flat
Have demonstrations
Promote new
at conventions headed features of products
by proactive social
media team
1http://www.runskiprun.com/demographics-of-triathletes/
2http://www.mattchrabot.com
Passed on to fellow
athletes during
training for
competitions
Highlight continued
differential advantage
40

41. Message Design
Category
Key Features
Key Benefits
Key Maslow/Utility
Triggers
Social hooks/Trends
Context
Description
1. Eliminates flat tires
2. Reduces energy requirements
3. Social media connectivity
4. Range of personalized
statistics to improve
performance
1. Eliminates flat tires
2. Easy to use
3. Saves energy
1. Self Actualization
2. Esteem
3. Safety
4. Form Utility
Focus on differential advantage
Highlight safety and form utility,
high self actualization of triathletes
Environmental awareness and
technology trends
Key Words and Phrases
Resistance
Bead
Synthetic
Rolling
Boot
Multi-compound
1. Environmental awareness
2. Technology
3. Personalization
Pressure
Clincher
Carbon
Puncture
Elastomer
Nanotube
1. White, affluent married males
2. 30-40 years old
3. Attractive to innovators and
adopters of social/technological
trends
Flat
Tread
Sewables
Apex
Threads
Threads per inch
Attack
Folding
Diameter
41

42. 42

43. 43

44. Advertisements
Triathletes are responsive
• 69% purchased advertised products3
• 61% likely to upgrade to new gear4
• Represents target niche (White
male triathlete, 30-40 years old)
• Value statement highlights
differential advantage
• Drives to webpage
3,4http://www.runskiprun.com/
demographics-of-triathletes/
44

45. 45

46. 46

47. Conclusion
Based on the extensive research and analyses of the
product and market, Never Flat is confident that the
Energy Return Wheel will win
47