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Introduction to the Company
Outdoors Unlimited is an outdoor adventure store located in Provo, Utah. The store sells and rents
camping and outdoor equipment, and offer services such as bike, ski, and snowboard repair. The store
stock all the equipment needed to take advantage of Utah’s beautiful outdoors. Outdoors Unlimited
update their selection of rental bikes, skis, and snowboards every year. The store is associated with
Brigham Young University, and all the employees are either BYU students or teaching staff.
History of the Company
Outdoors Unlimited opened its doors in 1982, and since then has been in several locations on the BYU
campus. The store has been steadily expanded over the past 32 years,with the store expanding into
their new building in 2012. As the university subsidizes the store,it allows the cost to the consumer to
remain relatively low. Also, the expansion of the company can be credited to their end of season sales
where they sell their excellently maintained rental inventory. Outdoors Unlimited offers customers
expert knowledge of the local area,high
quality repairs, and sells well-known and
established outdoor equipment brands such
as, Camelback, Smith Optics, and Fuji
Bikes.
Outdoors Unlimited significantly taps into
their BYU student market through offering
special discounts to students. The store has
a strong promotion through the university
and now connects with the wider
community through a website, as well as
through various social media outlets,
including, Facebook, Instagram, Foursquare,
and Twitter. The store also encourages customers to use their outdoor experiences on social media
using the #outdoorsunlimited.
Atmosphere of the Company
Outdoors Unlimited has an interesting atmosphere. When you pull into the parking lot, you are met by
a rather large, warehouse-looking building. The facade of the building is covered in pebbly material
that adds to the character to the store. However,there is little to draw the consumer into the building.
The store is split into two sections, the equipment storage and rentals section and the retail section.
The rental section has a distinct industrial warehouse feel, and smells like rubber and grease. The
walls are covered with every kind of outdoor equipment you could ever want. It is an outdoorsman’s
nirvana. In contrast the retail section of the store is much smaller in comparison, but much more filled
with color and life. The walls are covered with merchandise that gives the store a young, active
atmosphere. Also, the young, active-looking staff helps this atmosphere and videos of outdoor
activities and extreme sports are played on a large TV in the front of the store.
The Competitive Environment
Overall Marketing Analysis
Utah is known for having many natural wonders and many Utah residents love to get out and explore
the beautiful environment that they live in. The state also boasts to have some of the best
snowboarding and skiing terrain of anywhere in the United States. Outdoor recreation is a driving
force within Utah’s economy and contributes $5.8B annually. According to Utah’s Governor’s Office
of Economy Development (2014), outdoor recreationists have access to,“54 million acres of public
land, five National Parks,43 State Parks,14 ski resorts,thousands of miles of world class mountain
bike trails, big-walls, sand towers, and wild rivers…”
Outdoors Unlimited attempts to target the customers that want to take advantage of Utah’s natural
environment and outdoorsy lifestyle. Particularly, through the company’s association with BYU
targets students, alumni, and the greater BYU community, approximately 540,000 people. The
company targets those in the market that are interested in adventure sports, camping, backpacking,
cycling, and games. The typical outdoor recreation customer requires high-quality and reliable
products and services. Outdoors Unlimited has been a part of the community for almost 30 years, and
is well known throughout the community. The company relies on its longstanding in the community
and connection to BYU to draw in customers. Their marketing efforts are limited and are mostly
seasonal, for their seasonal sales. The company utilizes social media through the use of Facebook,
Twitter and Instagram, and has an excellent-looking website.
Competition
As previously mentioned, the outdoor recreation market is big business for Utah,and is a highly
saturated market. Many different types of companies attempt to access this market, including, large
box chain stores, specialty stores,and smaller rental/retail stores. There are about 15 companies in the
Provo/Orem area that make up specialty and rental/retail stores categories.
DirectCompetitors
OUT ‘N’ BACK
Out ‘n’ Back is a force to be reckoned with in the outdoor recreation world. They offer a wide and
varied range of outdoor equipment. Their price point in slightly cheaper than that of Outdoors
Unlimited and consistently receive outstanding online reviews. Out ‘n’ Back have been in business
since 1988 and specialize in climbing, camping, backpacking, and anything outdoors. They directly
compete for the same segment of the market as Outdoors Unlimited. Out ‘n’ Back promote their
business through online subscription and social media. The company also promotes their business
through more traditional methods, such as mail advertising and signage.
OUTDOOR ADVENTURE CENTER
Outdoor Adventure Center is UVU’s counterpart to Outdoors Unlimited. The store is run from the
Orem campus in the newly completed Student Life and Wellness Center. On almost every point
Outdoor Adventure Center and Outdoors Unlimited come out the same. There is basically no
difference between the two companies when comparing price. Outdoor Adventure Center taps into the
UVU student community and stands out from other outdoor recreation stores in the area through
offering guided tours and trips of Utah. Although, they do offer a smaller range of rental equipment
than many other outdoor recreation stores. Outdoor Adventure Center promotes the company through
social media and through a strong presence in on-campus advertising. The company is a direct
competitor through targeting the same segment of the market as Outdoors Unlimited.
MAD DOGCYCLE
Mad dog cycle has been in business for almost 20 years and first opened their doors in 1997. The
company is at the higher price point of the market, with an over 66 percent mark-up different between
Outdoors Unlimited and Mad Dog Cycle, when comparing a basic bike tune up. Mad Dog Cycle is
popular within the market and continuously receives excellent reviews. The company uses Facebook,
Google+, Instagram, and Twitter. They also promote the company through connecting with the
community through the Boy Scouts program. Mad Dog Cycle mostly targets bike owners in the
Orem/Provo area and therefore only targets a partial share of the same segment as Outdoors
Unlimited.
IndirectCompetitors
There are many indirect competitors for Outdoors Unlimited. Some of these competitors include well-
established outdoor recreation chain stores, such as, REI, Sportsmans Warehouse,and Scheels. All of
these stores specialize in outdoor recreation equipment and offer a wide range for beginners to experts,
at varying price points. Other indirect competitors include smaller specialty retail stores such as
Canyon Sports and Taylor’s Bike Shop.
Strategic Analysis
Outdoors Unlimited has shown longevity within an ever increasingly saturated market. This can be
attributed to their many strengths, including variety of inventory, pricing, location and most
importantly their ownership and association with BYU. Although, it must be recognized that
accompanying the many strength come some weakness that need to be addressed for the business to
continue its longevity and prominence in the market. However,these weaknesses provide
opportunities for the company to expand and improve, particularly in the area of marketing. There are
also a few threats that affect the way in which the business and other businesses like Outdoors
Unlimited run and continue to run in the future.
SWOT TABLE
STRENGTHS WEAKNESSES
 Time in business
 Owned by BYU
 Wide variety of inventory
 Pricing
 Location
 Customer service
 Owned by BYU
 Business Cost
 Market Saturation
OPPORTUNITIES THREATS
 Social Media Marketing
 Offer guided trips
 BYU resources
 Dependency on Weather
 Down turn in economy
 Ownership of outdoors equipment
Analysis of Strengths, Weaknesses, Opportunities, andThreats
STRENGTHS
1. Time in Business. Outdoors Unlimited has been in business for over 30 years and has the
experience to know and manage quality inventory of outdoors equipment.
2. Owned by BYU. The company has the financial and administrative backing from a long-
established university. This association provides an endless stream of potential new customers
for the company.
3. Wide Variety of Inventory. Outdoors Unlimited has a large building and warehouse and are
therefore able to provide their customers with an extensive variety of equipment to choose
from. The variety allows them to market to a wider and larger market.
4. Pricing. The company is in the lower price point in the market and provides quality equipment
at low prices and offers further discounts to BYU students.
5. Location. The store is located conveniently close to Provo Canyon. Anyone going up the
canyon from Provo will most likely have to pass the store on his or her way.
WEAKNESSES
1. Customer Service. Outdoors Unlimited consistently score lower in online customer reviews
for customer service compared to their direct competitors.
2. Owned by BYU. The store relies too much on the connection to BYU alone as a marketing
strategy.
3. Business Costs. Due to the large amount of inventory kept in the store at once, the cost to
maintain the entire inventory to a high quality is expensive for the business.
4. Market Saturation. Utah Valley is saturated with outdoor equipment stores and customers
have an almost endless number of stores they can choose from.
OPPORTUNITIES
1. Social Media Marketing. Outdoors Unlimited has an opportunity to engage more with
customers through social media marketing and this can be achieved through having staff
become more involved in actively marketing the store.
2. Offer Guided Trips. Other outdoor stores in the area offer guided trip to customers, such as
rock climbing in Rock Canyon, Hiking in the Unitas, and kayaking on Lake Powell. It would
be beneficial for Outdoors Unlimited to expand into this area.
3. BYU Resources. Another opportunity presents itself through capitalizing on the resources of
BYU to advertise the store. The store could market at BYU sporting event, on BYU TV, and
through BYU Radio.
THREATS
1. Dependency on Weather. The business sales and rentals are dramatically affected by the
weather. If the weather is bad, then rentals and sales fall.
2. Down Turn in Economy. Outdoor adventure is not an essential and if the economy is down
then people do not have the disposable income to spend on buying or rental outdoor
equipment.
3. Ownership of equipment. As Outdoors Unlimited mainly focuses on the rental of outdoor
equipment it relies on people who do not own outdoor equipment. Now, with box chain stores
emerging into the outdoor equipment market, it is cheaper and easier than before for
customers to own their own outdoors equipment. Therefore,the ownership of outdoors
equipment decreases the available market of renters.
Marketing Research
Proposal
Outdoors Unlimited would benefit from remaining up-to-date with the latest outdoor equipment and
trends in the outdoor adventure scene. The company needs to stay in touch with their consumers to
know what they are interested in and how to best serve the customer’s needs and wants. If Outdoors
Unlimited can offer their consumers the latest technology and merchandise in outdoor adventure gear
they can put themselves ahead of their competition.
Due to the season aspect of the business and customer trend the company should collect data from
previous sales records and buying/ renting trends of customers throughout each season. Also,
collecting data from national forestry services and state government agencies would be beneficial, as
they often keep accurate and up-to-date records of customer trends and statistics regarding outdoor
activities.
Outdoors Unlimited should collect primary data through a variety of survey methods. It is essential
that the company gather data directly form customers. This can be done through e-mail surveys,
observational data,experimental data, and most importantly personal interview. Due to the consumer
environment, focus groups and surveys administers through social media would provide the company
with the most valuable data.
Sample Survey
Below is a sample survey that can be distributed to customers. The survey should be administered
online through a two-pronged approach. Surveys should be distributed through the use of the social
media site Facebook and secondly through the use of email addresses of customers. Through the use
of a digital survey service provider, such as Surveymonkey or Kwiksurveys the costs will remain
minimal, significantly decreasing the cost of assembly and distribution.
Due to the potential of low returns for the survey and the low cost of distribution, the survey should be
administered to all customers in the company’s database. Furthermore,to combat the potential for low
survey participation the company should send out reminder emails and Facebook posts one week after
initial contact with customers. It is also suggested that the company offer rewards for those who
participate, suggested reward include a raffle for participants or coupons on merchandise or services.
For the purposes of the example the offer consists of a raffle of a Fuji mountain bike worth $600. The
survey should be collected after three weeks and the raffle should be drawn a few days after the data is
collected.
Outdoors Unlimited Customer Survey
Dear Valued Customer,
Outdoors Unlimited is committed to providing you with the best products and services possible. Please
help us know how we can better serve you by completing this survey. Your answers will be remain
anonymous and will assist us to know how we can make your experiences at Outdoors Unlimited
easier and more enjoyable. To thank you for your participation, you will be entered to win a Fuji
mountain bike worth $600.
1. Have you purchased services or products from Outdoors Unlimited in the past month?
a) YES b) NO
2. If Yes, What products or services did you purchase?
a) Biking rental
b) Bike purchase/ repair
c) Camping rental
d) Hiking rental
e) Snowboarding/ Skiing rental
f) Other, Please Specify _____________________
3. I am very satisfied with the customer service I receive at Outdoors Unlimited
a) TRUE b) FALSE
4. If you answered False, Please explain:
5. What advertising medium do you best respond to? Check all that apply.
o Social Media
o TV
o Radio
o Phone
o Email
o Internet
o Mail
o Newspaper
6. Outdoors Unlimited are meeting my outdoor equipment needs. Circle One.
Strongly Disagree 1 2 3 4 5 Strongly Agree
7. What areas of outdoor adventure interest you? Rank answers below 1-6. 1= High Interest, 6=
No Interest.
Camping Cycling
Hiking Snowboarding/ Skiing
Rafting Rock Climbing
8. How can Outdoors Unlimited make your outdoor experience easier and more enjoyable?
Positioning Strategy
Segmenting the Market
The general market targeted by Outdoors Unlimited consists of college students attending BYU. This
market includes both male and female students, as well as traditional and non-traditional students.
Outdoors Unlimited targets both students who live at home and students who live in student housing.
Most of the general market of BYU students work in part-time employment and earn between $15,000
and $20,000 annually. The typical student targeted by Outdoors Unlimited lives with 3 to 5 other
students in single gender housing. Most of the students live within an eight-mile radius of the campus
and many walk or ride bicycles to get to school. The general market can be segmented into two
smaller groups that would be beneficial to pursue for focusing marketing efforts. Each of these
segments of the market has commonalities, but also have differences that differentiate each segment.
“BudgetFitnessBarbies” are girls between the ages of 18 and 24. They are unmarried students
who live in student housing. They value outward appearances and fitness. They also value healthy
eating and enjoy getting out into nature to stay healthy and fit. They want a cheaper alternative to gym
memberships, but still value quality in products. Due to their living arrangements they do not have
enough disposable income to buy their own outdoor equipment, so, prefer to rent equipment. They
have limited time on weekdays and like to break their fitness routine, mostly consisting of running, on
the weekend by exploring Utah’s outdoors. They rely on word of mouth and social media to get
information about businesses and services.
“OutdoorDaters” are typically male students between the ages of 21 and 27. They enjoying giving
girls a unique date experience through enjoying the nature at Utah has to offer. They devote a large
amount of their free time on taking girls on dates. Outdoor Daters are on a budget and value dates that
are fun and inexpensive. They watch a lot of professional sports and value a love for the outdoors.
They work on the weekends and study on weekdays,and therefore value doing business with
company’s that have good customer service and fast service. They value non-conformity and like to
make themselves different from those around them. Although at the same time they like to be involved
outdoor activities that are seen as the latest trends.
Positioning Strategy
To most effectively position Outdoors Unlimited in the minds of consumers, the company must focus
on their inventory of products that reflect the latest trends in outdoor activities and the social nature of
their products. Focusing these two areas of the business will target consumers that value the social
aspect of outdoor adventure and keeping up the latest trends. This will further differentiate Outdoors
Unlimited from their competition as most of their competition focus on outdoor adventure equipment
that deemphasizes social interaction in nature and therefore isolates these segments of the market.
Price has little difference across outdoor store in Utah and so is not valid to access for a positioning
strategy, as long as pricing stays relatively similar.
Positioning Map
Below is a positioning map to reflect how consumers perceive Outdoors Unlimited’s products. The
map may not be a reflection of how things really are in terms of market positioning. Companies and
segments are positioned using two scales,vertically measuring the social emphasis of the products,
and horizontally measuring the products that reflect the latest trends.
Summary of the Positioning Map
The positioning map indicates where Outdoors Unlimited and their competitors are positioned in the
minds of consumers. Outdoors Unlimited should strive to position themselves as close to the “Budget
Fitness Barbies” and “Outdoor Daters” segments of the market. It is important that the company
focuses on the needs and wants of these two segments of the market in order for Outdoors Unlimited
to be the outdoors equipment store of choice. For Outdoors Unlimited to more effectively capture the
Established
Trend Latest
Trend
Social
ability
Individuality
Outdoor
Daters
Budget
Fitness
Barbies
Outdoors
Unlimited
Mad
Dog
Cycle
Outdoor
Adventure
Center
REI
Out ‘n’
Back
Taylor’s
Bike Shop
Scheels
Canyon
Sports
Sportsman’s
warehouse
“Budget Fitness Barbies” and “Outdoor Daters” segments,they need to make their product better
reflect the latest trends in outdoor adventure and offer more products that promote social interaction.
Product Strategy
Product Line
Outdoors Unlimited exclusively target students of BYU and other community members who live in
Utah County. They offer a wide range of outdoor recreationalequipment that caters to anyone with a
love for outdoor adventure for both retail and rental business. Outdoors Unlimited customers have
strong financial motivation that is balanced with an excitement for the recreation and leisure that is
offered by the natural beauty of Utah County.
Customers are driven to find a good price for quality equipment, this is due to the number of students
who live independently, and sustain themselves from their own income. Outdoors Unlimited
excellently caters to this need through being priced on the lower end of the market, without
compromising on quality of the product. As a result of the range of services and products offered by
Outdoors Unlimited, including bike servicing, equipment rentals, and retail services, the store has a
steady flow of customers throughout each day.
Outdoors Unlimited’s success can,in part, be attributed to three key elements that differentiate them
from their competition. These elements have allowed Outdoors Unlimited to create customer loyalty
and brand awareness that is associated with top brand products, competitive pricing and quality
services, keeping them in business for over 30 years.
CompetitivePricing – Outdoors Unlimited very competitive pricing in comparison to others in
the outdoor recreation market. They offer top quality brands for rent at a fraction of the price, allowing
customers to experience the best on a budget. The store is positioned on the lower end of pricing scale,
permitting students and families with little disposable income to access quality outdoor recreational
equipment.
PrimeLocation – Outdoors Unlimited is excellently located to differentiate themselves from their
competitors. They are the closest store to Provo Canyon and can offer convenience to customers that
other stores cannot. Also, in a time where leisure time is precious to the consumer, Outdoors
Unlimited’s location offers customers the least time wasted acquiring their desired equipment and the
maximum time enjoying the outdoors.
BYUBrandAssociation – Outdoors Unlimited reaps the benefit of being associated with BYU.
This is achieved through piggybacking on an already established brand that has been present in Utah
County for 130 years. The association with the university reaches out to customers who already have a
brand loyalty and shadows that loyalty onto Outdoors Unlimited. The qualities associated with BYU
are reflected in the perceptions of Outdoors Unlimited, in the minds of customers.
Product Life Cycle
Outdoors Unlimited are in the maturity stage of the life cycle. The outdoor recreation industry has
been well established for many years and that is evident through the company being in business for the
past 32 years. Although, being in the maturity stage bring with it its own set of challenges that
Outdoors Unlimited needs to be aware of and face. Some issues associated with this stage that will
affect Outdoors Unlimited include, overcapacity, adapting to changing customer needs,and defending
market share.
The company is already working to operate
effectively in the maturity stage of the life cycles
through keeping their prices low to maintain market
share,however, they must work on ways to keep cost
per customer as low as possible to ensure to keep
profits flowing. Maximizing profits and defending
market share should be their main objective. Some
strategies to support this objective many include
modifying the market through access more
marginal segments of the market, or modifying the
marketing mix through offering competitions or
other aggressive sales promotions. Other strategies
that can address the issues associated with the
maturity stage include, stress the brand differences
and benefits, and improve distribution methods to
become more intensive.
Accelerating the Adoption Process
There are severalways that Outdoors Unlimited can accelerate the adoption process of their products.
Specifically, they can improve customer’s perception of the Relative Advantage, Divisibility, and
Communicability. Outdoors Unlimited can stress,through advertising, that they have superior
products compared to their competitors and let customers know when they receive new outdoor
recreation products. The rate of adoption can be increased through Divisibility. Many of the product
sold through retail are different to rental products, the store could trial a rent to buy system for a
selection of their products. To improve Communicability, Outdoors Unlimited can launch a social
media campaign to let customers communicate with each other about the store and products. Through
developing a social media presence it allows others to observe the products and innovations.
Product Life Cycle
Curve
Time
Sales
Introduction
Growth
Maturity
Decline
Price Strategy
Strategy Decisions
Currently, Outdoors Unlimited is using a competitive pricing strategy. The company’s pricing is very
similar to that of their competitors, with little to no difference. The need for a competition- based
pricing strategy stems from the judgments made by customers. Many of Outdoors Unlimited’s
customers value price comparison to get the best deal they can. This is aided through the similar
product lines and product mixes that are carried by Outdoors Unlimited and their competitors.
The competitive environment that Outdoors Unlimited is operating in is a monopolistic competitive
environment. The outdoor adventure industry relies heavily on physical stores that customers can do to
and rent and buy outdoor equipment. Although the Utah County market centers on the two major areas
of Provo and Orem these centers do not control the market as a whole. As a result of fewer sellers,
Outdoors Unlimited must be more responsive to the pricing strategies and marketing moves of their
competitors. However,they do have some wiggle room as individual sellers to set their own pricing.
Outdoors Unlimited prides itself on having the new and latest product, and they ensure this by selling
off inventory seasonally to allow for bringing in the newer products next season. They use the market
penetration strategy to attract customers to move their unwanted inventory. The company should use
the market skimming strategy for their new inventory, and this must be done through emphasizing
superior quality compared to competitors. There are customers who are willing to pay a higher price in
the outdoor adventure industry, even in an monopolistic competitive environment.
Pricing Comparisons
Ski rental Bicycle rental Bicycle tune up
Outdoors Unlimited $15 per day $35 per day $30
Outdoor Adventure
Center
$20 per day $30 per day N/A
Out ‘n’ Back $20 per day N/A N/A
Mad Dog Cycle N/A N/A $49.99
Future Pricing
In the future, Outdoors Unlimited should consider using a Good-Value pricing strategy. The company
is compromising the potential of larger profits through their current competitive-based pricing
strategy. The company would benefit from the good-value pricing strategy through emphasizing their
superior quality, and this can be achieved through the implementation of psychological pricing. A
large part of Outdoors Unlimited’s business is the experience that customers have with products.
Psychological pricing would allow the company to set their prices a little higher to be aligned with the
value placed on the products and services through the customer’s own experiences rather the value
placed by the products by the competition.
Place Strategy
Distribution Channel
Outdoors Unlimited is a retailer in their distribution model. They
receive goods directly from producers and then resell those good to
consumers. The goods are shipped from the producers to the store’s
location in Provo, Utah. The products are then stored in Outdoors
Unlimited’s offsite warehouse or displayed in the store for the
purposed of rental or purchase. Outdoors Unlimited are solely
responsible for the selling, marketing, and maintenance of their
products.
Location, Location
Outdoors Unlimited are a one-location company, as are many of their main competitors. However,the
store has excellent location for customer convenience. Many customers rent or buy outdoor equipment
with the intention of leaving from the store to go into Provo Canyon. This places Outdoors Unlimited
in the prime location to attract customers,as they are located just south of the mouth of the canyon.
The store is a warehouse style building and therefore creates little foot traffic and has no window
displays. Outdoors Unlimited has a large parking lot for customers and the walk from car to storefront
is less than 70 feet. Also, the store as a drive-up where customers who have bought or rented larger
outdoor equipment items can drive their cars up to the storefront’s door and staff will assist with
loading the equipment.
Customer Procedures
The distribution process for customers is very simple. Customers can see the store’s inventory before
coming to the store through their website or through coming to the store and seeing the products first
hand. Customers then order what they want from staff or the staff can make recommendation to
customers based on their needs. In the case of bike sales/rentals customers are then permitted to try out
the bike, ride it around the parking lot, and decide if that is the product they desire. Customers can also
order in products to be purchased that are not currently in stock, this is done in store or over the phone.
Seasonality Problems
Seasonality is a large factor of consideration for Outdoors
Unlimited. Every fall and spring the company sells off its summer
and winter inventory. This is advantageous to keep running cost
low, however, it can also be a challenge. Outdoors Unlimited move
their seasonalstock early in fall and spring making an approximate
two week gap where they are loosing profit their could have made on the rental of equipment.
Suggestions for Improvement
 The main retail showroom lacks space and only displays bikes, we suggest decreasing the
number of bikes displayed and adding a larger variety of inventory to the showroom,
including climbing equipment and a tent.
 As seasonality plays a large role in the business we suggest waiting until the middle of fall and
spring to move off-season equipment to allow for longer rental periods and avoid loss profits.
 The main way to order and deliver products for the customer is through in-store sales, we
suggest offering customers online ordering and payments through Outdoors Unlimited’s
website.
 To increase foot traffic and due to the lack of windows in the storefront, Outdoors Unlimited
should create a display outside the storefront to draw customers into the store.
Promotion Strategy
Past Promotion
In the past, Outdoors Unlimited has had very few promotional strategies. All of the store’s promotions
use the outdoors as the main theme. The theme is reflected in Outdoors Unlimited’s through the logo
and color scheme. The company’s logo reflects the outdoor theme through the use of a pine tree as the
focal point. The color scheme is not as effective as the
image of the logo in reflecting the outdoors theme. The
color scheme consists of black, white, and red, with red
used as an accent color to emphasize the company’s slogan.
The slogan for the company reads, “You’ll find it off
campus,” and perpetuates the outdoor theme for the
company’s promotion. The logo and slogan as a whole work well together to promote the overall
theme of the company’s promotion. The promotion visuals are simple and eye catching, especially
with the contrasting color scheme.
However,Outdoors Unlimited has little to no brand equity. They rely on the brand power of BYU and
the promotion the association between them brings to the company. With that being said the brand is
most aware with the local public and particularly with the students of BYU as the company uses
extensive sales promotion techniques to draw in customers. Outdoors Unlimited heavily offers
students sales promotions through an immediate 20% discount on all rentals and retail, and through
annual sales that promotes the store through extensively discounted, high-quality merchandise.
IMC
Through the use of the company’s logo, color scheme,and slogan, the company is beginning to
establish a strong brand identity and build their band equity. Outdoors Unlimited would benefit from
an integrated marketing communication approach for the promotion of the business. The company
must utilize multiple forms of communication with the consumer to make their promotion more
effective.
To develop the company’s identity in the minds of the consumer, Outdoors Unlimited should launch a
new promotional campaign. The big idea for the campaign should be based on the established slogan
of the company; “You’ll find it off campus.” The logo, including the slogan, as seen in the above
image, should be made prevalent on all promotional mediums. The campaign would target college
students, particularly BYU students. The campaign should encourage students to get off campus and
experience the outdoors that surrounds them, while at the
same time emphasizing the great prices that Outdoors
Unlimited offers BYU students. The campaign should make
clear that value that experiencing the outdoors can add to
their college experience without breaking their meager
budgets.
Outdoors Unlimited’s campaign should use the mediums of both digital media and visual media to
draw in customer awareness. TV advertising through BYU TV as well as emails and social media
should be utilized to reach the intended segment of the market. The emails should be sent to customers
approximately once a month and should encourage students to get into the outdoors and remind
students of their 20% student discount. The TV ads should emphasize the same message as the email
campaign while including videos and images of people getting out in the outdoors. The social media
aspect of the campaign should include tweets,Facebook updates, and Instagram posts of students and
staff utilizing student discounts and getting off campus into the outdoors. The staff should also post
updates about new equipment and discounts. To increase traffic to the company’s Facebook page the
Outdoors Unlimited should offer people whom like and then share the Facebook page with their
Facebook friends an additional 5% discount. The discount will be able to be downloaded and printed
by the user after they have liked and shared the Facebook page.
Promotion Strategy
Two Promotion Samples
Below are two promotion samples that can be utilized by Outdoors Unlimited. The first is a sales
promotion sample. The sample is of a clothing line that would have the company’s logo, name and
slogan on it. The clothing line could start with just T-shirts and Hoodies, with the potential to expand
into a larger line.
The merchandise can be ordered from online wholesalers that specialize in custom clothing. The
advantage of using online wholesalers is that designing the merchandise is quick, simple and
convenient.
The steps to creating merchandise online is as follows:
1. Choose the website you want to do business with
2. Select the specific merchandise you want to use
3. Design the merchandise by uploading logos, inserting company’s name and slogan, and
choosing colors.
4. Choose the quantity of merchandise, including specific sizes.
5. Have merchandise shipped to the company
Some examples of pricing and different websites can be seen in the table below.
Website Merchandise item Quantity Cost per Item
Customink.com T-shirt 120 $9.45
Hoodies 140 $18.81
Discountmugs.com T-shirt 120 $2.26 + $240 setup
fee
Hoodies 140 $13.27 + $220 setup
fee
Ooshirts.com T-shirt 120 $5.25
Hoodies 140 $11.78
*Prices reduce as quantity increase
The second is a sample of the Digital promotion through the use of the company’s Instagram account.
The Instagram account would work to let customers know about new merchandise, promotions, and
experiences staff have had in the outdoors. The account would be updated every two to three days, and
below will show two example posts. Social media is an excellent forum for promotion as it is free and
can be accessed by millions of people, with little effort. The use of Instagram to promote Outdoors
Unlimited is both cost and time effective and allows for brand awareness to grow among the target
demographic.

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MP 3-12

  • 1. Introduction to the Company Outdoors Unlimited is an outdoor adventure store located in Provo, Utah. The store sells and rents camping and outdoor equipment, and offer services such as bike, ski, and snowboard repair. The store stock all the equipment needed to take advantage of Utah’s beautiful outdoors. Outdoors Unlimited update their selection of rental bikes, skis, and snowboards every year. The store is associated with Brigham Young University, and all the employees are either BYU students or teaching staff. History of the Company Outdoors Unlimited opened its doors in 1982, and since then has been in several locations on the BYU campus. The store has been steadily expanded over the past 32 years,with the store expanding into their new building in 2012. As the university subsidizes the store,it allows the cost to the consumer to remain relatively low. Also, the expansion of the company can be credited to their end of season sales where they sell their excellently maintained rental inventory. Outdoors Unlimited offers customers expert knowledge of the local area,high quality repairs, and sells well-known and established outdoor equipment brands such as, Camelback, Smith Optics, and Fuji Bikes. Outdoors Unlimited significantly taps into their BYU student market through offering special discounts to students. The store has a strong promotion through the university and now connects with the wider community through a website, as well as through various social media outlets, including, Facebook, Instagram, Foursquare, and Twitter. The store also encourages customers to use their outdoor experiences on social media using the #outdoorsunlimited. Atmosphere of the Company Outdoors Unlimited has an interesting atmosphere. When you pull into the parking lot, you are met by a rather large, warehouse-looking building. The facade of the building is covered in pebbly material that adds to the character to the store. However,there is little to draw the consumer into the building. The store is split into two sections, the equipment storage and rentals section and the retail section. The rental section has a distinct industrial warehouse feel, and smells like rubber and grease. The walls are covered with every kind of outdoor equipment you could ever want. It is an outdoorsman’s nirvana. In contrast the retail section of the store is much smaller in comparison, but much more filled with color and life. The walls are covered with merchandise that gives the store a young, active atmosphere. Also, the young, active-looking staff helps this atmosphere and videos of outdoor activities and extreme sports are played on a large TV in the front of the store.
  • 2. The Competitive Environment Overall Marketing Analysis Utah is known for having many natural wonders and many Utah residents love to get out and explore the beautiful environment that they live in. The state also boasts to have some of the best snowboarding and skiing terrain of anywhere in the United States. Outdoor recreation is a driving force within Utah’s economy and contributes $5.8B annually. According to Utah’s Governor’s Office of Economy Development (2014), outdoor recreationists have access to,“54 million acres of public land, five National Parks,43 State Parks,14 ski resorts,thousands of miles of world class mountain bike trails, big-walls, sand towers, and wild rivers…” Outdoors Unlimited attempts to target the customers that want to take advantage of Utah’s natural environment and outdoorsy lifestyle. Particularly, through the company’s association with BYU targets students, alumni, and the greater BYU community, approximately 540,000 people. The company targets those in the market that are interested in adventure sports, camping, backpacking, cycling, and games. The typical outdoor recreation customer requires high-quality and reliable products and services. Outdoors Unlimited has been a part of the community for almost 30 years, and is well known throughout the community. The company relies on its longstanding in the community and connection to BYU to draw in customers. Their marketing efforts are limited and are mostly seasonal, for their seasonal sales. The company utilizes social media through the use of Facebook, Twitter and Instagram, and has an excellent-looking website. Competition As previously mentioned, the outdoor recreation market is big business for Utah,and is a highly saturated market. Many different types of companies attempt to access this market, including, large box chain stores, specialty stores,and smaller rental/retail stores. There are about 15 companies in the Provo/Orem area that make up specialty and rental/retail stores categories. DirectCompetitors OUT ‘N’ BACK Out ‘n’ Back is a force to be reckoned with in the outdoor recreation world. They offer a wide and varied range of outdoor equipment. Their price point in slightly cheaper than that of Outdoors Unlimited and consistently receive outstanding online reviews. Out ‘n’ Back have been in business since 1988 and specialize in climbing, camping, backpacking, and anything outdoors. They directly compete for the same segment of the market as Outdoors Unlimited. Out ‘n’ Back promote their business through online subscription and social media. The company also promotes their business through more traditional methods, such as mail advertising and signage. OUTDOOR ADVENTURE CENTER Outdoor Adventure Center is UVU’s counterpart to Outdoors Unlimited. The store is run from the Orem campus in the newly completed Student Life and Wellness Center. On almost every point Outdoor Adventure Center and Outdoors Unlimited come out the same. There is basically no
  • 3. difference between the two companies when comparing price. Outdoor Adventure Center taps into the UVU student community and stands out from other outdoor recreation stores in the area through offering guided tours and trips of Utah. Although, they do offer a smaller range of rental equipment than many other outdoor recreation stores. Outdoor Adventure Center promotes the company through social media and through a strong presence in on-campus advertising. The company is a direct competitor through targeting the same segment of the market as Outdoors Unlimited. MAD DOGCYCLE Mad dog cycle has been in business for almost 20 years and first opened their doors in 1997. The company is at the higher price point of the market, with an over 66 percent mark-up different between Outdoors Unlimited and Mad Dog Cycle, when comparing a basic bike tune up. Mad Dog Cycle is popular within the market and continuously receives excellent reviews. The company uses Facebook, Google+, Instagram, and Twitter. They also promote the company through connecting with the community through the Boy Scouts program. Mad Dog Cycle mostly targets bike owners in the Orem/Provo area and therefore only targets a partial share of the same segment as Outdoors Unlimited. IndirectCompetitors There are many indirect competitors for Outdoors Unlimited. Some of these competitors include well- established outdoor recreation chain stores, such as, REI, Sportsmans Warehouse,and Scheels. All of these stores specialize in outdoor recreation equipment and offer a wide range for beginners to experts, at varying price points. Other indirect competitors include smaller specialty retail stores such as Canyon Sports and Taylor’s Bike Shop.
  • 4. Strategic Analysis Outdoors Unlimited has shown longevity within an ever increasingly saturated market. This can be attributed to their many strengths, including variety of inventory, pricing, location and most importantly their ownership and association with BYU. Although, it must be recognized that accompanying the many strength come some weakness that need to be addressed for the business to continue its longevity and prominence in the market. However,these weaknesses provide opportunities for the company to expand and improve, particularly in the area of marketing. There are also a few threats that affect the way in which the business and other businesses like Outdoors Unlimited run and continue to run in the future. SWOT TABLE STRENGTHS WEAKNESSES  Time in business  Owned by BYU  Wide variety of inventory  Pricing  Location  Customer service  Owned by BYU  Business Cost  Market Saturation OPPORTUNITIES THREATS  Social Media Marketing  Offer guided trips  BYU resources  Dependency on Weather  Down turn in economy  Ownership of outdoors equipment Analysis of Strengths, Weaknesses, Opportunities, andThreats STRENGTHS 1. Time in Business. Outdoors Unlimited has been in business for over 30 years and has the experience to know and manage quality inventory of outdoors equipment. 2. Owned by BYU. The company has the financial and administrative backing from a long- established university. This association provides an endless stream of potential new customers for the company. 3. Wide Variety of Inventory. Outdoors Unlimited has a large building and warehouse and are therefore able to provide their customers with an extensive variety of equipment to choose from. The variety allows them to market to a wider and larger market. 4. Pricing. The company is in the lower price point in the market and provides quality equipment at low prices and offers further discounts to BYU students. 5. Location. The store is located conveniently close to Provo Canyon. Anyone going up the canyon from Provo will most likely have to pass the store on his or her way. WEAKNESSES 1. Customer Service. Outdoors Unlimited consistently score lower in online customer reviews for customer service compared to their direct competitors.
  • 5. 2. Owned by BYU. The store relies too much on the connection to BYU alone as a marketing strategy. 3. Business Costs. Due to the large amount of inventory kept in the store at once, the cost to maintain the entire inventory to a high quality is expensive for the business. 4. Market Saturation. Utah Valley is saturated with outdoor equipment stores and customers have an almost endless number of stores they can choose from. OPPORTUNITIES 1. Social Media Marketing. Outdoors Unlimited has an opportunity to engage more with customers through social media marketing and this can be achieved through having staff become more involved in actively marketing the store. 2. Offer Guided Trips. Other outdoor stores in the area offer guided trip to customers, such as rock climbing in Rock Canyon, Hiking in the Unitas, and kayaking on Lake Powell. It would be beneficial for Outdoors Unlimited to expand into this area. 3. BYU Resources. Another opportunity presents itself through capitalizing on the resources of BYU to advertise the store. The store could market at BYU sporting event, on BYU TV, and through BYU Radio. THREATS 1. Dependency on Weather. The business sales and rentals are dramatically affected by the weather. If the weather is bad, then rentals and sales fall. 2. Down Turn in Economy. Outdoor adventure is not an essential and if the economy is down then people do not have the disposable income to spend on buying or rental outdoor equipment. 3. Ownership of equipment. As Outdoors Unlimited mainly focuses on the rental of outdoor equipment it relies on people who do not own outdoor equipment. Now, with box chain stores emerging into the outdoor equipment market, it is cheaper and easier than before for customers to own their own outdoors equipment. Therefore,the ownership of outdoors equipment decreases the available market of renters.
  • 6. Marketing Research Proposal Outdoors Unlimited would benefit from remaining up-to-date with the latest outdoor equipment and trends in the outdoor adventure scene. The company needs to stay in touch with their consumers to know what they are interested in and how to best serve the customer’s needs and wants. If Outdoors Unlimited can offer their consumers the latest technology and merchandise in outdoor adventure gear they can put themselves ahead of their competition. Due to the season aspect of the business and customer trend the company should collect data from previous sales records and buying/ renting trends of customers throughout each season. Also, collecting data from national forestry services and state government agencies would be beneficial, as they often keep accurate and up-to-date records of customer trends and statistics regarding outdoor activities. Outdoors Unlimited should collect primary data through a variety of survey methods. It is essential that the company gather data directly form customers. This can be done through e-mail surveys, observational data,experimental data, and most importantly personal interview. Due to the consumer environment, focus groups and surveys administers through social media would provide the company with the most valuable data. Sample Survey Below is a sample survey that can be distributed to customers. The survey should be administered online through a two-pronged approach. Surveys should be distributed through the use of the social media site Facebook and secondly through the use of email addresses of customers. Through the use of a digital survey service provider, such as Surveymonkey or Kwiksurveys the costs will remain minimal, significantly decreasing the cost of assembly and distribution. Due to the potential of low returns for the survey and the low cost of distribution, the survey should be administered to all customers in the company’s database. Furthermore,to combat the potential for low survey participation the company should send out reminder emails and Facebook posts one week after initial contact with customers. It is also suggested that the company offer rewards for those who participate, suggested reward include a raffle for participants or coupons on merchandise or services. For the purposes of the example the offer consists of a raffle of a Fuji mountain bike worth $600. The survey should be collected after three weeks and the raffle should be drawn a few days after the data is collected.
  • 7. Outdoors Unlimited Customer Survey Dear Valued Customer, Outdoors Unlimited is committed to providing you with the best products and services possible. Please help us know how we can better serve you by completing this survey. Your answers will be remain anonymous and will assist us to know how we can make your experiences at Outdoors Unlimited easier and more enjoyable. To thank you for your participation, you will be entered to win a Fuji mountain bike worth $600. 1. Have you purchased services or products from Outdoors Unlimited in the past month? a) YES b) NO 2. If Yes, What products or services did you purchase? a) Biking rental b) Bike purchase/ repair c) Camping rental d) Hiking rental e) Snowboarding/ Skiing rental f) Other, Please Specify _____________________ 3. I am very satisfied with the customer service I receive at Outdoors Unlimited a) TRUE b) FALSE 4. If you answered False, Please explain: 5. What advertising medium do you best respond to? Check all that apply. o Social Media o TV o Radio o Phone o Email o Internet o Mail o Newspaper 6. Outdoors Unlimited are meeting my outdoor equipment needs. Circle One. Strongly Disagree 1 2 3 4 5 Strongly Agree 7. What areas of outdoor adventure interest you? Rank answers below 1-6. 1= High Interest, 6= No Interest.
  • 8. Camping Cycling Hiking Snowboarding/ Skiing Rafting Rock Climbing 8. How can Outdoors Unlimited make your outdoor experience easier and more enjoyable?
  • 9. Positioning Strategy Segmenting the Market The general market targeted by Outdoors Unlimited consists of college students attending BYU. This market includes both male and female students, as well as traditional and non-traditional students. Outdoors Unlimited targets both students who live at home and students who live in student housing. Most of the general market of BYU students work in part-time employment and earn between $15,000 and $20,000 annually. The typical student targeted by Outdoors Unlimited lives with 3 to 5 other students in single gender housing. Most of the students live within an eight-mile radius of the campus and many walk or ride bicycles to get to school. The general market can be segmented into two smaller groups that would be beneficial to pursue for focusing marketing efforts. Each of these segments of the market has commonalities, but also have differences that differentiate each segment. “BudgetFitnessBarbies” are girls between the ages of 18 and 24. They are unmarried students who live in student housing. They value outward appearances and fitness. They also value healthy eating and enjoy getting out into nature to stay healthy and fit. They want a cheaper alternative to gym memberships, but still value quality in products. Due to their living arrangements they do not have enough disposable income to buy their own outdoor equipment, so, prefer to rent equipment. They have limited time on weekdays and like to break their fitness routine, mostly consisting of running, on the weekend by exploring Utah’s outdoors. They rely on word of mouth and social media to get information about businesses and services. “OutdoorDaters” are typically male students between the ages of 21 and 27. They enjoying giving girls a unique date experience through enjoying the nature at Utah has to offer. They devote a large amount of their free time on taking girls on dates. Outdoor Daters are on a budget and value dates that are fun and inexpensive. They watch a lot of professional sports and value a love for the outdoors. They work on the weekends and study on weekdays,and therefore value doing business with company’s that have good customer service and fast service. They value non-conformity and like to make themselves different from those around them. Although at the same time they like to be involved outdoor activities that are seen as the latest trends. Positioning Strategy To most effectively position Outdoors Unlimited in the minds of consumers, the company must focus on their inventory of products that reflect the latest trends in outdoor activities and the social nature of their products. Focusing these two areas of the business will target consumers that value the social aspect of outdoor adventure and keeping up the latest trends. This will further differentiate Outdoors Unlimited from their competition as most of their competition focus on outdoor adventure equipment that deemphasizes social interaction in nature and therefore isolates these segments of the market. Price has little difference across outdoor store in Utah and so is not valid to access for a positioning strategy, as long as pricing stays relatively similar.
  • 10. Positioning Map Below is a positioning map to reflect how consumers perceive Outdoors Unlimited’s products. The map may not be a reflection of how things really are in terms of market positioning. Companies and segments are positioned using two scales,vertically measuring the social emphasis of the products, and horizontally measuring the products that reflect the latest trends. Summary of the Positioning Map The positioning map indicates where Outdoors Unlimited and their competitors are positioned in the minds of consumers. Outdoors Unlimited should strive to position themselves as close to the “Budget Fitness Barbies” and “Outdoor Daters” segments of the market. It is important that the company focuses on the needs and wants of these two segments of the market in order for Outdoors Unlimited to be the outdoors equipment store of choice. For Outdoors Unlimited to more effectively capture the Established Trend Latest Trend Social ability Individuality Outdoor Daters Budget Fitness Barbies Outdoors Unlimited Mad Dog Cycle Outdoor Adventure Center REI Out ‘n’ Back Taylor’s Bike Shop Scheels Canyon Sports Sportsman’s warehouse
  • 11. “Budget Fitness Barbies” and “Outdoor Daters” segments,they need to make their product better reflect the latest trends in outdoor adventure and offer more products that promote social interaction. Product Strategy Product Line Outdoors Unlimited exclusively target students of BYU and other community members who live in Utah County. They offer a wide range of outdoor recreationalequipment that caters to anyone with a love for outdoor adventure for both retail and rental business. Outdoors Unlimited customers have strong financial motivation that is balanced with an excitement for the recreation and leisure that is offered by the natural beauty of Utah County. Customers are driven to find a good price for quality equipment, this is due to the number of students who live independently, and sustain themselves from their own income. Outdoors Unlimited excellently caters to this need through being priced on the lower end of the market, without compromising on quality of the product. As a result of the range of services and products offered by Outdoors Unlimited, including bike servicing, equipment rentals, and retail services, the store has a steady flow of customers throughout each day. Outdoors Unlimited’s success can,in part, be attributed to three key elements that differentiate them from their competition. These elements have allowed Outdoors Unlimited to create customer loyalty and brand awareness that is associated with top brand products, competitive pricing and quality services, keeping them in business for over 30 years. CompetitivePricing – Outdoors Unlimited very competitive pricing in comparison to others in the outdoor recreation market. They offer top quality brands for rent at a fraction of the price, allowing customers to experience the best on a budget. The store is positioned on the lower end of pricing scale, permitting students and families with little disposable income to access quality outdoor recreational equipment. PrimeLocation – Outdoors Unlimited is excellently located to differentiate themselves from their competitors. They are the closest store to Provo Canyon and can offer convenience to customers that other stores cannot. Also, in a time where leisure time is precious to the consumer, Outdoors Unlimited’s location offers customers the least time wasted acquiring their desired equipment and the maximum time enjoying the outdoors. BYUBrandAssociation – Outdoors Unlimited reaps the benefit of being associated with BYU. This is achieved through piggybacking on an already established brand that has been present in Utah County for 130 years. The association with the university reaches out to customers who already have a brand loyalty and shadows that loyalty onto Outdoors Unlimited. The qualities associated with BYU are reflected in the perceptions of Outdoors Unlimited, in the minds of customers. Product Life Cycle
  • 12. Outdoors Unlimited are in the maturity stage of the life cycle. The outdoor recreation industry has been well established for many years and that is evident through the company being in business for the past 32 years. Although, being in the maturity stage bring with it its own set of challenges that Outdoors Unlimited needs to be aware of and face. Some issues associated with this stage that will affect Outdoors Unlimited include, overcapacity, adapting to changing customer needs,and defending market share. The company is already working to operate effectively in the maturity stage of the life cycles through keeping their prices low to maintain market share,however, they must work on ways to keep cost per customer as low as possible to ensure to keep profits flowing. Maximizing profits and defending market share should be their main objective. Some strategies to support this objective many include modifying the market through access more marginal segments of the market, or modifying the marketing mix through offering competitions or other aggressive sales promotions. Other strategies that can address the issues associated with the maturity stage include, stress the brand differences and benefits, and improve distribution methods to become more intensive. Accelerating the Adoption Process There are severalways that Outdoors Unlimited can accelerate the adoption process of their products. Specifically, they can improve customer’s perception of the Relative Advantage, Divisibility, and Communicability. Outdoors Unlimited can stress,through advertising, that they have superior products compared to their competitors and let customers know when they receive new outdoor recreation products. The rate of adoption can be increased through Divisibility. Many of the product sold through retail are different to rental products, the store could trial a rent to buy system for a selection of their products. To improve Communicability, Outdoors Unlimited can launch a social media campaign to let customers communicate with each other about the store and products. Through developing a social media presence it allows others to observe the products and innovations. Product Life Cycle Curve Time Sales Introduction Growth Maturity Decline
  • 13. Price Strategy Strategy Decisions Currently, Outdoors Unlimited is using a competitive pricing strategy. The company’s pricing is very similar to that of their competitors, with little to no difference. The need for a competition- based pricing strategy stems from the judgments made by customers. Many of Outdoors Unlimited’s customers value price comparison to get the best deal they can. This is aided through the similar product lines and product mixes that are carried by Outdoors Unlimited and their competitors. The competitive environment that Outdoors Unlimited is operating in is a monopolistic competitive environment. The outdoor adventure industry relies heavily on physical stores that customers can do to and rent and buy outdoor equipment. Although the Utah County market centers on the two major areas of Provo and Orem these centers do not control the market as a whole. As a result of fewer sellers, Outdoors Unlimited must be more responsive to the pricing strategies and marketing moves of their competitors. However,they do have some wiggle room as individual sellers to set their own pricing. Outdoors Unlimited prides itself on having the new and latest product, and they ensure this by selling off inventory seasonally to allow for bringing in the newer products next season. They use the market penetration strategy to attract customers to move their unwanted inventory. The company should use the market skimming strategy for their new inventory, and this must be done through emphasizing superior quality compared to competitors. There are customers who are willing to pay a higher price in the outdoor adventure industry, even in an monopolistic competitive environment. Pricing Comparisons Ski rental Bicycle rental Bicycle tune up Outdoors Unlimited $15 per day $35 per day $30 Outdoor Adventure Center $20 per day $30 per day N/A Out ‘n’ Back $20 per day N/A N/A Mad Dog Cycle N/A N/A $49.99 Future Pricing In the future, Outdoors Unlimited should consider using a Good-Value pricing strategy. The company is compromising the potential of larger profits through their current competitive-based pricing strategy. The company would benefit from the good-value pricing strategy through emphasizing their superior quality, and this can be achieved through the implementation of psychological pricing. A
  • 14. large part of Outdoors Unlimited’s business is the experience that customers have with products. Psychological pricing would allow the company to set their prices a little higher to be aligned with the value placed on the products and services through the customer’s own experiences rather the value placed by the products by the competition. Place Strategy Distribution Channel Outdoors Unlimited is a retailer in their distribution model. They receive goods directly from producers and then resell those good to consumers. The goods are shipped from the producers to the store’s location in Provo, Utah. The products are then stored in Outdoors Unlimited’s offsite warehouse or displayed in the store for the purposed of rental or purchase. Outdoors Unlimited are solely responsible for the selling, marketing, and maintenance of their products. Location, Location Outdoors Unlimited are a one-location company, as are many of their main competitors. However,the store has excellent location for customer convenience. Many customers rent or buy outdoor equipment with the intention of leaving from the store to go into Provo Canyon. This places Outdoors Unlimited in the prime location to attract customers,as they are located just south of the mouth of the canyon. The store is a warehouse style building and therefore creates little foot traffic and has no window displays. Outdoors Unlimited has a large parking lot for customers and the walk from car to storefront is less than 70 feet. Also, the store as a drive-up where customers who have bought or rented larger outdoor equipment items can drive their cars up to the storefront’s door and staff will assist with loading the equipment. Customer Procedures The distribution process for customers is very simple. Customers can see the store’s inventory before coming to the store through their website or through coming to the store and seeing the products first hand. Customers then order what they want from staff or the staff can make recommendation to customers based on their needs. In the case of bike sales/rentals customers are then permitted to try out the bike, ride it around the parking lot, and decide if that is the product they desire. Customers can also order in products to be purchased that are not currently in stock, this is done in store or over the phone. Seasonality Problems Seasonality is a large factor of consideration for Outdoors Unlimited. Every fall and spring the company sells off its summer and winter inventory. This is advantageous to keep running cost low, however, it can also be a challenge. Outdoors Unlimited move their seasonalstock early in fall and spring making an approximate two week gap where they are loosing profit their could have made on the rental of equipment.
  • 15. Suggestions for Improvement  The main retail showroom lacks space and only displays bikes, we suggest decreasing the number of bikes displayed and adding a larger variety of inventory to the showroom, including climbing equipment and a tent.  As seasonality plays a large role in the business we suggest waiting until the middle of fall and spring to move off-season equipment to allow for longer rental periods and avoid loss profits.  The main way to order and deliver products for the customer is through in-store sales, we suggest offering customers online ordering and payments through Outdoors Unlimited’s website.  To increase foot traffic and due to the lack of windows in the storefront, Outdoors Unlimited should create a display outside the storefront to draw customers into the store.
  • 16. Promotion Strategy Past Promotion In the past, Outdoors Unlimited has had very few promotional strategies. All of the store’s promotions use the outdoors as the main theme. The theme is reflected in Outdoors Unlimited’s through the logo and color scheme. The company’s logo reflects the outdoor theme through the use of a pine tree as the focal point. The color scheme is not as effective as the image of the logo in reflecting the outdoors theme. The color scheme consists of black, white, and red, with red used as an accent color to emphasize the company’s slogan. The slogan for the company reads, “You’ll find it off campus,” and perpetuates the outdoor theme for the company’s promotion. The logo and slogan as a whole work well together to promote the overall theme of the company’s promotion. The promotion visuals are simple and eye catching, especially with the contrasting color scheme. However,Outdoors Unlimited has little to no brand equity. They rely on the brand power of BYU and the promotion the association between them brings to the company. With that being said the brand is most aware with the local public and particularly with the students of BYU as the company uses extensive sales promotion techniques to draw in customers. Outdoors Unlimited heavily offers students sales promotions through an immediate 20% discount on all rentals and retail, and through annual sales that promotes the store through extensively discounted, high-quality merchandise. IMC Through the use of the company’s logo, color scheme,and slogan, the company is beginning to establish a strong brand identity and build their band equity. Outdoors Unlimited would benefit from an integrated marketing communication approach for the promotion of the business. The company must utilize multiple forms of communication with the consumer to make their promotion more effective. To develop the company’s identity in the minds of the consumer, Outdoors Unlimited should launch a new promotional campaign. The big idea for the campaign should be based on the established slogan of the company; “You’ll find it off campus.” The logo, including the slogan, as seen in the above image, should be made prevalent on all promotional mediums. The campaign would target college students, particularly BYU students. The campaign should encourage students to get off campus and experience the outdoors that surrounds them, while at the same time emphasizing the great prices that Outdoors Unlimited offers BYU students. The campaign should make clear that value that experiencing the outdoors can add to their college experience without breaking their meager budgets.
  • 17. Outdoors Unlimited’s campaign should use the mediums of both digital media and visual media to draw in customer awareness. TV advertising through BYU TV as well as emails and social media should be utilized to reach the intended segment of the market. The emails should be sent to customers approximately once a month and should encourage students to get into the outdoors and remind students of their 20% student discount. The TV ads should emphasize the same message as the email campaign while including videos and images of people getting out in the outdoors. The social media aspect of the campaign should include tweets,Facebook updates, and Instagram posts of students and staff utilizing student discounts and getting off campus into the outdoors. The staff should also post updates about new equipment and discounts. To increase traffic to the company’s Facebook page the Outdoors Unlimited should offer people whom like and then share the Facebook page with their Facebook friends an additional 5% discount. The discount will be able to be downloaded and printed by the user after they have liked and shared the Facebook page.
  • 18. Promotion Strategy Two Promotion Samples Below are two promotion samples that can be utilized by Outdoors Unlimited. The first is a sales promotion sample. The sample is of a clothing line that would have the company’s logo, name and slogan on it. The clothing line could start with just T-shirts and Hoodies, with the potential to expand into a larger line. The merchandise can be ordered from online wholesalers that specialize in custom clothing. The advantage of using online wholesalers is that designing the merchandise is quick, simple and convenient. The steps to creating merchandise online is as follows: 1. Choose the website you want to do business with 2. Select the specific merchandise you want to use 3. Design the merchandise by uploading logos, inserting company’s name and slogan, and choosing colors. 4. Choose the quantity of merchandise, including specific sizes. 5. Have merchandise shipped to the company Some examples of pricing and different websites can be seen in the table below. Website Merchandise item Quantity Cost per Item Customink.com T-shirt 120 $9.45 Hoodies 140 $18.81 Discountmugs.com T-shirt 120 $2.26 + $240 setup fee Hoodies 140 $13.27 + $220 setup fee
  • 19. Ooshirts.com T-shirt 120 $5.25 Hoodies 140 $11.78 *Prices reduce as quantity increase The second is a sample of the Digital promotion through the use of the company’s Instagram account. The Instagram account would work to let customers know about new merchandise, promotions, and experiences staff have had in the outdoors. The account would be updated every two to three days, and below will show two example posts. Social media is an excellent forum for promotion as it is free and can be accessed by millions of people, with little effort. The use of Instagram to promote Outdoors Unlimited is both cost and time effective and allows for brand awareness to grow among the target demographic.