Piano Di Marketing Radical Downhill

Radical Downhill
Marketing Plan
123 Mountain Ridge Road

Skitown, CO 88000
Phone: 123-456-7890
Fax: 123-456-7890
Email: Rgonsalves@radicaldownhill.com
Web Site: www.radicaldownhill.com
Contact: Robert Gonsalves
Table of Contents
Executive Summary.........................................................................................................................4
MARKETING OBJECTIVES.................................................................................................................................................4
PRODUCTS OR SERVICES...................................................................................................................................................4
RESOURCES NEEDED.......................................................................................................................................................5
PROJECTED OUTCOMES....................................................................................................................................................5
Company Description......................................................................................................................5
Strategic Focus and Plan..................................................................................................................5
MISSION/VISION.............................................................................................................................................................5
GOALS..........................................................................................................................................................................6
CORE COMPETENCY/SUSTAINABLE COMPETITIVE ADVANTAGES..............................................................................................6
Situation Analysis............................................................................................................................6
INTERNAL FACTORS.........................................................................................................................................................6
Strengths:.................................................................................................................................6
Weaknesses:.............................................................................................................................7
EXTERNAL FACTORS........................................................................................................................................................8
Current Opportunities..............................................................................................................8
Potential Future Opportunities.................................................................................................8
Consumer/Social......................................................................................................................9
Competitive..............................................................................................................................9
Technological...........................................................................................................................9
Economic...............................................................................................................................10
Legal/Regulatory....................................................................................................................10
INDUSTRY ANALYSIS/TRENDS.........................................................................................................................................10
COMPETITOR ANALYSIS..................................................................................................................................................11
COMPANY ANALYSIS......................................................................................................................................................11
CUSTOMER ANALYSIS....................................................................................................................................................12
Demographics........................................................................................................................12
Geo-demographics.................................................................................................................12
Psychographics......................................................................................................................13
Usage and Usage Rate...........................................................................................................13
SWOT ANALYSIS SUMMARY.........................................................................................................................................14
Market – Product Focus ................................................................................................................14
MARKETING AND PRODUCT OBJECTIVES...........................................................................................................................14
TARGET MARKETS........................................................................................................................................................15
POINTS OF DIFFERENCE..................................................................................................................................................15
POSITIONING................................................................................................................................................................17
Creating a Brand Image Online.............................................................................................17
Maintaining Brand Image/Branding Concerns......................................................................17
Marketing Program........................................................................................................................17
PRODUCT AND PRODUCT STRATEGY.................................................................................................................................18
Augmented Product Definition..............................................................................................20
PRICE..........................................................................................................................................................................20
Static Pricing Strategies.........................................................................................................20
Dynamic Pricing Strategies....................................................................................................21
PROPRIETARY and CONFIDENTIAL INFORMATION: Do Not Distribute 2

PROMOTION.................................................................................................................................................................22
Mass Media Sales Promotion Strategy..................................................................................22
Online Sales Promotion Strategy...........................................................................................22
Channel Strategies: Push and Pull.........................................................................................23
Online Promotion/Advertising Objectives.............................................................................23
Mass Media Public Relations Strategies................................................................................23
Mass Offline Communications Strategy................................................................................24
Personal Offline Communications Strategy...........................................................................24
Mass Online Communications Strategy.................................................................................24
Affiliate Programs .................................................................................................................24
Personal Online Communications Strategy...........................................................................25
Viral Marketing .....................................................................................................................25
Generating E-Mail Lists for Advertising and Sales Promotion.............................................25
Online Public Relations Strategies.........................................................................................26
Community Strategic Development.......................................................................................26
PLACE.........................................................................................................................................................................26
Channel Management............................................................................................................27
Data and Projections......................................................................................................................27
SALES FORECASTING METHODS USED.............................................................................................................................27
SALES DATA................................................................................................................................................................28
E-Marketing’s Impact on Traditional Marketing Channels...................................................29
COSTS.........................................................................................................................................................................29
FINANCIAL PROJECTIONS................................................................................................................................................30
Organization...................................................................................................................................30
Implementation Plan .....................................................................................................................31
Website Content.....................................................................................................................31
Traffic Management...............................................................................................................31
Tracking Web Activity...........................................................................................................32
PEOPLE REQUIRED........................................................................................................................................................32
TIMING........................................................................................................................................................................32
Evaluation and Control..................................................................................................................33
MARKETING INFORMATION SYSTEMS NEEDED...................................................................................................................33
CRITERION MEASURES WITH OBJECTIVES.........................................................................................................................34
Appendix A: Biographies of Key Personnel..................................................................................35
Appendix B: Support Material.......................................................................................................36

Executive Summary
Radical Downhill is an outdoor sporting goods specialty shop focusing on alpine sports. It is
located in an artistic mountain community where creativity and innovation are encouraged.
Radical Downhill is located ¼ mile from the base lodge of Big Basin, a mountain known as the
“Mecca” for radical skiers. Its core market consists of extreme sports enthusiasts, professional
skiers and snowboarders and ski area visitors. The store has been in business for ten years and is
solvent and profitable. Radical Downhill enjoys excellent word-of-mouth advertising. Rarely
does a visitor to Big Basin leave town without first purchasing a Radical Downhill t-shirt or
sweatshirt. Radical Downhill seeks to expand its sales by launching an e-tailing website to offer
customers custom-made skis and snowboards, car rack systems and locally made arts & crafts.
Marketing Objectives
Radical Downhill enjoys current gross sales of $1,700,000 per year. Its business is seasonal and
most of the money is made in the six-month period from November through April. Radical
Downhill has developed a unique relationship with a local manufacturer of custom-made skis
and snowboards. Radical Downhill has exclusive distribution rights for these skis and
snowboards for a five-year period and an option for another five years. They have other
opportunities to market an innovative car rack system and to act as brokers for local artisans.
Radical Downhill wants to expand its sales through Internet marketing and intends to focus on
the extreme alpine sports niche, the same niche that it serves at its store. Its goal is to increase
gross sales by 30 percent in the first year and incrementally in subsequent years.
Products or Services
Although Radical Downhill stocks hundreds of items in its retail store, it intends to focus its e-
tail efforts on three new opportunities: custom-made skis and snowboards and accessories, an
innovative new car rack system and local arts and crafts.
The custom-made skis and snowboards are high quality, high performance items. They are the
Porsche or Lamborghini of the ski industry. Radical Downhill has contracted with the
manufacturer to use the shop name as the brand name.
The car rack system is superior to anything on the market, and, through an innovative
manufacturing break-through, retails for half the price of the industry leader. It is made of
composite materials, effortlessly mounts to a wide variety of cars, vans, and trucks, and makes
changing configurations a breeze.
Finally, by virtue of its location in an artistic mountain community, Radical Downhill has entered
into consignment agreements with local artisans to sell their arts & crafts via the Internet. Some
of the most popular items are the trinkets, necklaces, and jewelry made of silver and turquoise. A
local artist designed Radical Downhill’s brand symbol, a snowboard featuring a Mohawk haircut
and prominent piercing studs.
Resources Needed
Radical Downhill is seeking a capital infusion of $200,000 in order to develop, implement, and
promote an online website in order to sell these items to the national and international
marketplace. This $200,000 loan will be paid back in five years including interest. The company
has the management expertise to accomplish the plan but will need to hire outside consultants to
develop, debug and post the website. To offload much of the start-up expenses, Radical Downhill
plans to completely outsource the development, hosting, and operation of its website.
Projected Outcomes
We expect to increase our gross sales by $510,000 in the first year. In the second year and
beyond, we expect to increase gross sales by between 25 and 30 percent per year. The payback
schedule for the $200,000 is five years.
In addition to specific financial objectives, we intend to become the premier extreme alpine
sports website in North America and the world. Our online e-tail site will also serve to increase
traffic to our retail store. By building brand awareness, name, and equity, Radical Downhill
desires to become a destination store – one to which its clientele enjoys traveling.
Company Description
Radical Downhill was started in 1991 by cofounders Robert and Julie Gonsalves to cater
exclusively to extreme mountain sports enthusiasts. Radical Downhill sells a wide range of skis,
boots, bindings, snowboards, clothing, mountain bikes, climbing equipment and accessories.
Radical Downhill is a successful specialty shop. Its strengths include its location, its personnel,
and its products, and service offerings. In addition, Radical Downhill is profitable and generates
a positive cash flow annually. Radical Downhill owns the building (4,000 sq. ft. of retail space)
and property for its retail site and has a small outstanding mortgage.
Robert and Julie Gonsalves believe that an opportunity exists to expand their trade area through
the use of online sales. They want to increase their sales by 30 percent within the next year and
incrementally thereafter. They intend to do this by offering custom-made extreme skis,
snowboards, car racks and locally made artwork to a global niche market.
Strategic Focus and Plan

This section covers three aspects of corporate strategy that influence the marketing plan: 1) the
mission/vision, 2) goals, and 3) core competence/sustainable competitive advantage of Radical
Downhill.
Mission/Vision
The mission and vision of Radical Downhill is to market high-quality mountain sports equipment
at competitive prices and to provide exceptional support services to the growing niche of extreme
sports enthusiasts while providing challenging and satisfying career opportunities for employees
and an above average return on investment for the owners.

Goals
For the coming years, Radical Downhill seeks to achieve the following goals:
• Nonfinancial Goals
1. To retain and defend its position as the premier extreme mountain sports retail specialty
shop in the western U.S.A.
2. To leverage its reputation and image on a national and international basis through
offering its products online through a supplemental Internet marketing effort.
3. To remain on the leading edge of mountain sports technology and customer support
services.
4. To become the premier website for extreme sports enthusiasts throughout the world.
• Financial Goals
1. To increase gross sales by 30 percent per year over the next three to five years.
2. To maximize shareholder equity for the owners.
Core Competency/Sustainable Competitive Advantages

In terms of core competency, Radical Downhill seeks to achieve a unique ability (1) to serve the
needs of the growing niche market of extreme mountain sports enthusiasts and (2) to provide
customers with unparalleled levels of quality-oriented, value-added, customer service.
To translate these core competencies into a sustainable competitive advantage, Radical Downhill
will work closely with suppliers and employees to ensure that customers receive the highest
quality goods and services available in the industry.
Situation Analysis
Radical Downhill seeks to realistically match its internal strengths with market opportunities that
it has identified, while simultaneously minimizing its weaknesses and controlling threats from
the external environment.
Internal Factors
Strengths:
Radical Downhill’s location is key to its success. It has married its success to the explosive
growth in extreme skiing and snowboarding – particularly at Big Basin. It serves two groups of
customers: 1) the local extreme skiers and snowboarders and professionals, and 2) vacation
skiers and snowboarders. The local extreme enthusiasts are the smaller of the two markets. They
generally demand a higher quality of product and service. They are “shop loyal” customers,
many of which have purchased their equipment and clothing from Radical Downhill for the past
10 seasons. The vacation skiers are “drop-in” customers who need ski rentals, emergency service
or clothing and accessories to make their trip to the mountain more enjoyable. Many of the
vacationing skiers are remarkably loyal to the small store.

Radical Downhill is a family owned business. The owners are former ski instructors who began
the shop to service the equipment and clothing needs of their friends. Mr. Gonsalves has an MBA
degree and Mrs. Gonsalves has a law degree. A majority of the employees have worked at
Radical Downhill for eight years or more. Many are ski instructors or on the ski patrol in
addition to working at Radical Downhill. Most are college graduates. The low employee turnover
is an asset as it is a plus for customers returning every season to see familiar faces. In addition,
because of their length of employment, the employees have in depth product knowledge and
experience.
Radical Downhill offers high quality ski and snowboard equipment and clothing as well as mid-
level and lower-level equipment and apparel for its more price conscious customers. Since it
offers high performance equipment, and employs ski instructors and ski patrollers, Radical
Downhill has developed a reputation as THE shop for professional skiers, snowboarders,
extreme skiers, and those that strive to become either.
The owners of Radical Downhill left their high paying corporate jobs in San Francisco to pusue a
higher quality of life in this mountain “arts” community. Since resettling in the area a decade
ago, they have become fixtures in the local arts and crafts community. Their interaction with the
local craftspeople and artisans has blossomed into a business opportunity. They were approached
by a local custom ski and snowboard maker and asked to distribute custom-made extreme skis
and snowboards to the national and international market. Radical Downhill can make a good
margin selling these custom-made items. They have signed a five year contract to be the
exclusive distributors of these skis and snowboards, and an option to extend the agreement for an
additional five years.
Another local manufacturer has made a technological breakthrough in the engineering and
manufacturing of an automobile rack system. These racks retail for half the price of the industry
leader, are twice as durable, utilize a more efficient method of changing the rack’s setup (can
easily change from carrying skis to carrying bikes), and attach to any type of automobile without
requiring drilling or customization. Finally, the owners of Radical Downhill have agreed to sell
locally made arts & crafts for area artists. These items are for sale on consignment, meaning that
when they sell, Radical Downhill receives a percentage of the sales price.
Weaknesses:
Although Radical Downhill is open for business all year, it is a seasonal business with sales
peaking in January and declining rapidly beginning in March. Most of the sales are generated in
the six-month period of November to April. Summer sales are mostly to local customers or to
seasonal skiers who come to the mountain in the summer to hike or mountain bike. The shop
barely breaks even during the off months, and the staffing is reduced to reflect the level of
business. Radical Downhill is expanding its selection of mountain bikes to capitalize on the
growing demand for bikes and service in the summer months.
Even though the business is profitable on an annual basis, its cash flow fluctuates. Each season,
the shop relies on credit from its suppliers to replenish stock. Each fall after sales pick up,
Radical Downhill pays the summer bills and hires back the seasonal employees. Cash flow is a
problem, especially if suppliers refuse to grant credit. In addition, cash flow and profits are
reliant on an uncontrollable factor: snow. Even if there is snow at the mountain, many customers

don’t think of skiing until they see snow in their backyards. In a good season, the mountain has
between 100 and 150 ski days. In a bad season, this can go as low as 70 to 80 days. No snow
equals no business.
A third weakness is the general decline in the number of skiers. In the industrial growth cycle,
the ski industry is in maturity or decline. This is mostly because of the high cost of skiing. With
lift tickets at $50 or more per day and average ski costs exceeding $400 per pair, middle class
families can no longer afford to ski. The cost of a ski weekend for a family of five averages
about $1,000 when you include lift tickets, lodging, and food (not including transportation costs).
Getting new equipment and clothing for that same family costs anywhere from $2,000 to over
$5,000 depending on quality.
External Factors
Current Opportunities
Radical Downhill has an opportunity to be one of the first ski shops to sell custom-made extreme
equipment, clothing, and accessories online. Its focus is on the upper income segment of the
market. There are currently six competitors offering equipment online. None of the sites offer
much product depth – each has only one or two skis for sale in limited sizes. An opportunity
exists to become the first site to offer a unique (numbered) series of skis and snowboards to
extreme sports enthusiasts internationally.
The local craftsman that makes the custom skis and snowboards has agreed to charge Radical
Downhill a flat fee for everything produced. Radical Downhill has the freedom to set the retail
price. The company that produces the car racks has a Manufacturer’s Suggested Retail Price, but
the technology is so advanced and the price so low (50 percent of the industry leader’s price) that
it will be easy to sell. The local artisans are offering their artwork through Radical Downhill via
consignment.
Potential Future Opportunities
Given the number of ski shop bankruptcies per season and the resultant liquidation sales, a
second opportunity exists for Radical Downhill to enter the discount market and to become the
first ski discounter online. If Radical Downhill can acquire sufficient inventory, it could launch a
new website to sell discount equipment, clothing and accessories. This low-price focus fits well
with consumers’ expectations of web-based shopping. Radical Downhill must guard against its
own brand erosion if it pursues this opportunity. The discount site will be different from the
store’s main site and no references to Radical Downhill will be made on the discount ski page.
If the e-tail site proves successful, Radical Downhill will have an opportunity to offer arts and
crafts from new artists on its site. Vendors will also be approached to explore the possibility of
forming a strategic e-marketing alliance where the vendor provides advertising and sales
promotion support for its products being sold on the site.
The biggest threat facing Radical Downhill is the trend of global warming and shifting snowfall
patterns globally. The number of snow days and the amount of seasonal snowfall is decreasing
across North America. Snow drives the industry. Consumers don’t think of skiing until they see
snow in their back yard.

The financial environment also has an impact on industry sales. The shrinking purchasing power
of the middle class and the increased costs of lift tickets and equipment have combined to
decrease the total number of skiers. Less than five percent of the U.S. population participates in
skiing or snowboarding. Its image as an elitist sport remains intact.
Consumer/Social
There are three main geographic regions of the country in which skiers reside. They are the
northeast (Pennsylvania and north), the mid-west (Ohio, Michigan, Indiana, Illinois, Wisconsin,
and Minnesota), and the northwest (Utah, Colorado, Idaho, Oregon, Washington, and Northern
California). Most skiers are suburbanites and have the demographic characteristics presented
above. Trends impacting the industry are the reduced numbers of skiers and the reduced number
of days skied by each. Innovations in ski design have made skiing easier for recreational skiers
(parabolic skis), but have failed to re-invigorate the sport. Snowboarding is the fastest growing
segment of the snowsport industry and appeals to a younger, more adventurous clientele than
does alpine skiing. The reduced number of skiers and of days skied is attributable to the raising
cost of skiing, including rapidly raising lift ticket prices.
Competitive
At the macro-level, there are more ski shops going out of business each year than there are new
entrants into the marketplace. The number one reason for ski shop bankruptcies is the inability to
pay suppliers for goods shipped on credit.
At the micro-level, Radical Downhill has four competitors within a ten-mile radius of their store
location. One of the competitors is experiencing financial difficulties. The others are surviving.
Although there are many ski shops in North America, few are looking to the Internet with an eye
for increasing sales. Most are too busy trying to survive season to season. Time, costs, and
expertise seem to be the prevalent barriers to entry. And with manufacturers publishing their
Manufacturer’s Suggested Retail Price (MSRP) plus threatening retaliation for deviation from
the MSRP, there is little to no price competition in the ski industry.
Over time, as the competition becomes more technologically astute and as web page
development and maintenance becomes easier, more competitors will enter the online retail
market. However, Radical Downhill will have an established web presence by then along with a
dedicated customer base.
Technological
Ski and snowboard design and manufacturing technology is undergoing dramatic changes.
Newly engineered and designed skis are making it easier for recreational skiers to ski
proficiently.
On the online retailing side, as website development and maintenance software becomes more
user friendly, more competitors are expected to enter the online ski retail market. The technology
needed to launch the website is minimal. The computers, a computer network complete with a

dedicated server and a DSL high-speed Internet connection are the main components. Our
computers will be obsolete within the next three years and will need to be replaced. This is not
something that is unique to us. It may make more sense for us to lease our computers and have
an upgrade agreement. Using this strategy, we are never more than one or two innovations away
from the state of the art in computer systems.
While no one on our staff has experience developing, posting, and maintaining websites, Radical
Downhill plans to either train ourselves to do this or hire a consultant to provide these services
for us. If we hire a consultant, he or she will need to train others to maintain the system after
development and deployment.
Economic
Current economic conditions exacerbate declining industry revenues by reducing the number of
middle-income skiers and snowboarders. The affluent aren’t as impacted by the economic
downturn, although they are becoming increasingly selective about where they spend their
vacation time and money. All signs point to an early economic recovery, but uncertainty
regarding the rapidity at which the economy will change abounds.
Legal/Regulatory
There are no foreseeable changes in the legal and regulatory environment and its impact on the
snowsport industry. Legal and regulatory influences, however, are deemed to be the culprits in
driving lift ticket prices out of reach for the average person. Ski areas are forced to charge higher
rates every year to cover increasing insurance costs. Litigation against ski areas and ski shops is
one of the major causes of bankruptcy in the industry. The burden of skier safety has shifted from
the skier to the resort and to the shop responsible for outfitting the skier.
Industry Analysis/Trends
The ski/snowsport industry is in the maturity stage of market development and is possibly
heading into decline. According to the National Sporting Goods Association, there were 7.4
million skiers and 3.3 million snowboarders in the U.S. in 1999. These numbers are down from
the previous year, a trend that has been consistent for the past three years. In terms of dollar
volume, the alpine ski industry had $793 million in sales in 1999 and the snowboard industry had
$184 million in sales for the same period. No single ski shop has more than one percent of the
total market share. With gross sales of $900,000 per year, Radical Downhill is a minor player in
the ski industry. However, with ski shop bankruptcies at an all time high, Radical Downhill is a
profitable exception in its industry.
To gather more information about the ski industry as a whole and the characteristics of ski and
snowboard customers, the National Sporting Goods Association’s website at http://www.nsga.org
was searched. While much of the information is available for free, access to the in-depth reports
requires a membership. Macro-level information such as the total number of skiers and
snowboarders in the U.S. age seven and older (10.7 million) and the total industry sales for skis
and snowboards ($976.5 million) is available for free.

Core Competency Comparison
Crossed Ski and
Radical Ski Outlet Ski Lodge
Sabers Sports
Core High Lower Lower Lowest
Expertise
Strength Quality Prices Prices Price
Secondary Large
High Quality Value Location Value
Strength variety
Close to Close to
Next Large
Service where Service where
Strength Warehouse
skiers live skiers live
No control
Biggest Far from Far from
Seasonality Seasonality over
Weakness Skiing Skiing
inventory
Too far for To far for
Second Cash Flow
Cash Flow emergency emergency No service
Weakness Problems
repairs repairs
Declining Operated Declining
Next No
Customer by non- Bad Credit Customer
Weakness warranties
Base skiers Base
Competitor Analysis
There are four competitors within ten miles of Radical Downhill, one of which is the area shop
(the ski shop in the ski lodge at the base of the mountain). The total number of skiers coming to
the ski area each year is declining and the amount of time that they stay at the area is declining as
well. The exception to this trend is the radical ski and snowboard segments, both of which are
experiencing growth. Of the four competitors, three are financially stable and one is in trouble
with its suppliers. The total size of the local market for ski and snowboard equipment, clothing,
and accessories is estimated to be about $3 to $5 million per year.
Radical Downhill is the second largest shop in terms of gross sales. It is positioned to gain local
market share should one of its competitors goes out of business. In addition, it may be able to
gain some inventory for a bargain if its competitor goes out of business. Local growth for
Radical Downhill therefore depends on the demise of its competition rather than an expansion of
demand. However, Radical Downhill plans to expand its market by becoming the worldwide
distributor of custom-made skis and snowboards and automobile racks.
To provide management with a concise comparison of its retail competition, the following table
was developed.
Company Analysis
The husband and wife team that cofounded Radical Downhill in 1991 has 40+ years of
experience between them in the ski industry, mostly however as ski instructors. Both are highly

educated professionals and have played key roles in the management of Radical Downhill. They
are being advised by an advisory board consisting of upper level managers (former colleagues)
who remained in industry.
Currently Radical Downhill competes in the mountain sports industry on a local basis. It is the
number one performing specialty shop in its market and seeks expand its reach to a national and
international audience.
The company uses existing distribution channels to supply its store and has an opportunity to
partner with the local custom production market to develop “mass-customized” products for the
extreme mountain sports market.
Customer Analysis
Consumers of ski and snowboard equipment, clothing, and accessories tend to be upscale and
outdoor oriented. They purchase equipment infrequently and therefore seek durability in addition
to performance. Many of these consumers are brand loyal, with parents, friends, and role models
being the main influences on brand preference. On average, consumers spend seven days or less
skiing per season. Many schedule their family ski holiday to coincide with the week between
Christmas and New Years. Skis and snowboard equipment, clothing, and accessories are
specialty goods and the suppliers use either selective or exclusive distribution. This means that
shops in close proximity may not offer the same products or mix of products depending on the
supplier’s distribution strategy.
Radical Downhill’s customers tend to be at the upper end of either the financial continuum or of
the dedication-to-skiing continuum. That is, they are either financially well off or highly
dedicated skiers. They are able and willing to pay for the best in quality and service. Radical’s
customers are unique because of their commitment to leading edge technologies. Every season,
they have to have the best products available. They stay informed by reading ski and snowboard-
oriented consumer magazines and by talking to “experts” such as ski instructors. In addition,
they are thrill-seekers who enjoy pushing their limits and capabilities on the mountain. The
extreme ski and snowboard crowd has a unique sense of joie-de-vive. Their motto is “live for the
moment.”
Demographics
In terms of demographics, skiers and snowboarders tend to be between the ages of 25 to 34 (35.6
percent), male (70.8 percent), have household income in excess of $50,000 per year (51.6
percent), and are college graduates (43.4 percent). These characteristics (professional male
college graduates) mirror the characteristics of typical Internet users.
Extreme skiers and snowboarders tend to be between the ages of 16 and 28. Most are male (75
percent) and live in households with income in excess of $50,000 per year.
Geo-demographics
There are three main geographic regions of the country in which skiers reside. They are the
northeast (Pennsylvania and north), the mid-west (Ohio, Michigan, Indiana, Illinois, Wisconsin,
and Minnesota), and the northwest (Utah, Colorado, Idaho, Oregon, Washington, and Northern

California). Most skiers are suburbanites and have the demographic characteristics presented
above.
Psychographics
Skiers and snowboarders tend to share a love of outdoor activities and seek the adrenaline rush of
conquering the mountain. Extreme skiers and snowboarders enjoy pushing the envelope more
than do recreational skiers. They live hard, play hard, and party hard. They are hedonistic and
live for the moment. Extreme skiers and snowboarders also tend to enjoy in-line skating, hiking,
climbing, mountain biking, music, partying, and socializing with friends.
Usage and Usage Rate
There are different usage rates and segments based on how many days one skis per year. Heavy
users, those people who spend more than thirty days per season on the slopes, tend to make
skiing the focus of their lives. They either work in the ski industry or live close enough to a ski
area so that they can indulge in their passion.
Skiers that ski between 10 and 29 days per year are moderate users. They enjoy skiing, but their
lives do not revolve around having the opportunity to do so. They tend to focus more on the
social aspect of skiing than on the experience itself.
The majority of skiers in the U.S. ski less than 10 days per year. These light users are referred to
as recreational skiers. They enjoy skiing, but don’t ski enough to become highly proficient. For
this group, the ski trip tends to be a vacation.

SWOT Analysis Summary
Strengths Weaknesses
Location Seasonal business

Family-owned Cash flow fluctuations
Profitable Mature industry – possibly in decline
Educated owners (MBA & JD) No website building skills
Dedicated employees – low turnover Difficult to offer services via the Internet
High quality/upper end products
Excellent service
Custom-made skis & snowboards
New technology rack system
Arts & Crafts from local artisans
Opportunities Threats
Can be one of the first shops with online Four local competitors
sales Six online competitors
Potential to launch a separate clearance Hundreds of shops in North America
or discount site Global warming
Can represent/obtain new vendors Shrinking consumer purchasing power
Can represent/partner with new artists Technological innovation – computer
Market expansion systems need to be updated on a regular
Potential to become the nationally or basis
globally preferred shop for extreme
skiers
SWOT Analysis Chart
Market – Product Focus

This section describes the marketing and product objectives for Radical Downhill and its target
markets, points of difference, and the positioning of its product offerings.
Marketing and Product Objectives

Radical Downhill seeks to expand its markets by offering custom-made skis and snowboards,
automobile racks and customer artwork. The prospect for growth in the local market is minimal,
unless Radical purchases one of the competitors or one of the competitors goes out of business.
With more products being sold via the Internet and the prospects for a continued increase in the
amount of online shopping, Radical Downhill is making a bet on market expansion. While it will
predominantly remain dependent on sales within the local community, Radical Downhill hopes
to expand its customer base by serving the extreme ski and snowboard niche nationally and
internationally.

The online market for ski and snowboard equipment is growing and the number of competitors is
low. Radical Downhill will be one of the first shops to go online and sell equipment. The
challenge is to appeal to the upper income segment online. Most online shoppers tend to be price
shoppers or bargain seekers. Radical Downhill is betting there is a market for premium custom-
made products on line and believes it is a prospect worth pursuing.
Target Markets
Radical Downhill serves the upper income segment of the market. Its customers either have
enough money to afford the very best, or spend a high proportion of their income on their
equipment, clothing and accessories. In addition, it has “ownership” of the local and regional
extreme ski and snowboard niche. Visitors to the ski area come to the shop to purchase a Radical
Downhill t-shirt or sweatshirt whether they are extreme skiers or not because of the store’s
reputation.
Segmenting in the ski industry is accomplished demographically with the main variables being
income and social class. The upper income segment is the smallest in terms of total consumers
but offers higher average margins than the other segments. The upper income segment consists
mainly of singles or working professionals with few or no children.
Given the cost of skiing and of equipment, clothing and accessories, there is a growing price
conscious segment. This segment is less concerned with the performance of its equipment and
more concerned with the price of outfitting an entire family. The price conscious segment
consists of middle income families who enjoy skiing and outdoor sports. They strive to emulate
the consumers in the upper income segment.
Most ski shops are location-bound. Area ski shops exist to service visitors to the ski slope and are
conveniently located in close proximity to the ski area. Urban and suburban ski shops are
destination stores. Both are specialty shops, but area shops have more immediate competition
than do urban and suburban shops. Regardless of where skiers purchase their equipment, they
need ski repair or tuning services while they are at the slope. As a result, they take the equipment
to the closest available shop. More importantly, they take the equipment to the shop that can
accommodate their service needs while they wait.
So in addition to segmenting by the quality of the equipment, clothing, and accessories offered,
ski shops are segmented by their perceived service quality and the time that it takes to deliver
those services.
Points of Difference
Radical Downhill prides itself in offering top-of-the-line products from the market leaders in the
ski and snowboard industry. Skis and hard-goods generate a 40 percent margin, clothing
generates a 50 percent margin, and accessories can generate up to a 400 percent margin. In
addition to selling equipment, clothing, and accessories, Radical Downhill generates additional
revenue through its ski and snowboard rentals and its technical services. Technical services
include ski and snowboard binding mounting services and tuning and repair services. Likewise,
it services the mountain bikes that it sells including having annual tune-up packages and
performing on-site repairs while the customer waits. Most of its service business during the

prime season is “service on demand” meaning that it is performed while the customer waits.
Since they provide this high level of service, Radical Downhill can charge premium prices for its
services. Skiers are willing to pay for immediate service rather than risk losing a day on the snow
because of equipment problems.
Radical Downhill focuses on the upper end of the market, although it does stock mid- and lower-
priced equipment and clothing for its price conscious customers. This reputation for quality
products and quality services, combined with the allure of having a shop run by professional
skiers and snowboarders for professional skiers and snowboarders, has positioned Radical
Downhill uniquely in the local market.
Its competitors focus more on mid- and lower-priced equipment and clothing, targeting primarily
the price conscious segment. Of the four ski shops located within ten miles of Radical Downhill,
only one offers a level of service similar to that of Radical Downhill’s: the area ski shop. None of
the local competitors offer their products for sale via the Internet. And certainly none offer
custom-made extreme skis and snowboards.
A search of the Internet yielded six ski shops in North America (Canada, Mexico & the U.S.) that
sell equipment, clothing and accessories online. Two of the competitors are in Western Canada.
One of the competitors has products pictured online, but can only process telephone orders and
not online orders. Radical Downhill defined its online ski retail competition as the four U.S.-
based competitors.
Product/Servic Mountain
Radical Alpine Ski House Boards Inc.
e Comparison Top
Moderate to Moderate to
Price High High Discount
low low
Perceived Moderate to Moderate to Moderate to

High High
Quality low low low
Internet In
Yes, but not Yes, but not Yes, but only
marketing/sale developmen Yes
much depth much depth close-outs
s t
Custom-
Feature 1 Retail Retail Retail Retail
made
Quality
Top of line Top of line Acceptable Acceptable
Feature 2 dependent
quality quality quality quality
on supply
Ski Business Ski Business Discount
Feature 3 Professional Professional Professional Professional Professional
s s s s s
Good Acceptable Good Acceptable
Feature 4 No Service
Service Service Service Service
Competitive Comparison Matrix

Positioning
Brand image is something that is built over time. Radical Downhill has spent considerable time
and effort over the past decade building an image of high quality and expert knowledge. Our
competitive advantages include our level of service and dedicated knowledgeable employees.
Neither transfers well to the Internet. While our current customers have the benefit of visiting the
ski shop, seeing the quality, and experiencing our service, cyber-customers can only infer these
qualities from the information presented to them online.
Creating a Brand Image Online
By having a professionally designed website that is both appealing and functional, and by
providing the best in after-sale service including warranties, Radical believes that it can build the
same brand image in the minds of our cyber-customers as exists in our current customers. And by
including exterior and interior photographs of the store on the website, we can create a sense of
familiarity in the minds of our cyber-customers. The key to this is to create a buzz about the
custom-made skis and snowboards among extreme sports enthusiasts.
Maintaining Brand Image/Branding Concerns
Since we plan to offer custom-made skis and snowboards, car racks, and locally made arts &
crafts via the Internet, we can sell online year-round. Seasonal themes and promotions will allow
us to keep the site’s content fresh. Using a continuous online promotion strategy, supported by
seasonal advertising in the traditional media, we plan to keep our name in front of consumers and
to generate the projected traffic goal of 1,000 unique customer visits per week.
Marketing Program
Our reason for selling skis online is to broaden the consumer base. Ski shops are location bound.
There are few strategies available to expand sales in a competitive local environment. Radical’s
goal is to use a market diversification strategy – where we offer our products and services to new
markets – in order to increase our overall sales.
We seek to become one of the top, if not the top, ski retailers doing business online. No data is
available on the division of market share among the six competitors. After reviewing the online
competition, only one competitor has a site that we find appealing, and their product depth is
almost nonexistent (only a few products are offered and not in many sizes). No current online
competitor has the capability of offering custom-made skis and snowboards.
We are selling premium, custom-made products that do not have published MSRPs. Given the
lack of information regarding the volume of skis and snowboards sold online, it is difficult to
estimate an expected level of sales. The company plans to sell 280 pairs of custom-made skis
and/or snowboards in a season (November to April). This is our target number in order to
consider the online marketing effort a success.

Product and Product Strategy
Radical Downhill will offer two versions of the custom-made snow ski, two versions of the
custom-made snowboard, a technologically innovative car rack system, and local arts & crafts to
the Extreme ski and snowboard niche via the Internet. All skis, snowboards, and car racks will be
marketed under the Radical Downhill name in order to build brand equity and awareness.
The table below provides an overview of the product offerings and their descriptions.
Product Model Characteristics Sizes
Slalom ski with Giant

Slalom stability at
193, 198, 203, 208, 213
Extreme Ski Outer Limits high speeds. Quick
cm.
turns and great
cruising.
Wider profile than a

normal ski, great
floater in deep 193, 198, 203, 208, 213
Powder Ski Avalanche
powder. Giant cm.
Slalom profile for
cruising.
Extreme out-of-
bounds snowboard
that is stable at high
Extreme Back Bowl 158, 163, 168, 173, 178
speeds. Accepts
Snowboard Busta’ cm.
both hard-boot and
soft-boot mounting
systems.
Aggressive freestyle
board for use in the
pipeline. Extra
dense base and
Pipeline 143, 148, 153, 158, 163
Der Terminator edges for grinding
Snowboard cm.
and rail riding.
Accepts both hard-
boot and soft-boot
mounting systems.
Rack System Four feet, pads and Varies by automobile

Mounting kit
mounting hardware type

Innovative bar
system. Non-rust,
50, 53, 56, 59, 62, 65
Rack System Rack bars highly durable
inches
composite material.
Strong and light.
Sold in groups of Skis, snowboards,

Rack System Carrying kits
two bicycle
Rack System Aqua kits Sold individually Kayak, canoe, sailboard
Covered cargo
Rack System Sold individually ½ width and full width
carriers
Specializing in silver Bracelets, necklaces,

Arts & Crafts Jewelry and turquoise and earrings, pendants,
native jewelry piercing studs, etc.
Numbered prints by Nature and action

Arts & Crafts Lithographs
area artists motifs
Oil and Water color

Nature and action
Arts & Crafts Paintings paintings. All
motifs
originals.

Leaded glass – Stained glass, lamps
Arts & Crafts Stained Glass
Tiffany-style quality and lamp shades, etc.
Glazed and unglazed

ceramics by local Figurines, bowls,
Arts & Crafts Ceramics
and native kitchenware, art, etc.
craftspeople
Native American Native crafts that are

Arts & Crafts Baskets
weaved baskets functional and artistic.
Product offerings and their descriptions
Augmented Product Definition

Each of the products offered online, excluding artwork, clothing and clothing accessories, will
come with an extended warranty. In addition, Radical Downhill will provide access to its service
department via the Internet so that customers with equipment questions can interact with a
customer service representative.
Price
For the custom-made skis and snowboards, there is no defined Manufacturer’s Suggested Retail
Price (MSRP). Because of this, and the uniqueness of the product, we will use a price skimming
strategy. For the car racks, an MSRP exists, but we are allowed to market them under our own
brand name (contract manufacturing). And for the arts & crafts, the artist sets the price and we
receive a commission on all sales (25 percent).
Static Pricing Strategies
For our regular equipment, clothing, and accessories, the suppliers limit us with regard to how
we price their products. If we deviate too far from their MSRP, there is a possibility of losing the
supplier. And since the MSRP’s are widely published, consumers have little incentive to be price
shoppers for the current season’s equipment, clothing and accessories.
There is more pricing latitude with older equipment. Items left over from last season can be sold
at a discount to clear them from inventory. Since the manufacturer changes colors and styles
every season, it is impossible to sell last season’s products for this season’s prices.
If we have leftover inventory, we may use nontraditional pricing strategies such as auctions or
reverse auctions to build market share or e-mail lists. Otherwise, we are limited to static pricing

strategies for the current season’s product offerings. This pricing option only comes into play if a
decision is made to launch a separate discount equipment, clothing and accessories site.
In the table below are the retail prices, wholesale prices, and margins for each of the products
that we intend to sell online.
Product Retail Price Cost Margin
Outer Limits $1,500 $450 70 percent
Avalanche $1,500 $450 70 percent
Back Bowl Busta’ $1,200 $360 70 percent
Der Terminator $1,200 $360 70 percent
Accessories – t-
$40 – 60 $10 – 15 75 percent
shirts, sweatshirts
Rack Mounting kit $80 $40 50 percent
$70 – 95 by
Rack bars increments of $5 $35 – 47.50 50 percent
depending on size
Carrying kit – ski $20 for 2 $10 50 percent
Carrying kit –
$20 each $10 50 percent
snowboard
Carrying kit – bike $45 each $22.50 50 percent
Carrying kit –
kayak, canoe, $50 each $25 50 percent
sailboard
Covered cargo
$200 $100 50 percent
carrier – ½ size
Covered cargo
$400 $200 50 percent
carrier – full size
Varies – set by
Arts & Crafts Not applicable 25 percent
artist
Wholesale prices and margins
Dynamic Pricing Strategies

Beginning in 15 May every year, Radical Downhill will sell its leftover inventory via online
auction sites such as e-Bay. Customers purchasing items via online auction will receive only the

basic augmented product service levels. Radical Downhill will offer auction customers the option
of purchasing an extended warranty and will target online auction customers for direct mail
campaigns in an effort to convert them to committed customers.
Promotion
Our budget for e-sales promotion is $50,000. Since we are marketing direct to consumers, we
will use a combination of special offers, promotional discounts, limited-time offers, and sale
prices to move consumers from desire to action. We intend to rely heavily on Internet sales
promotion but will also use traditional media.
Mass Media Sales Promotion Strategy
Most of the sales promotion money is to be spent on traditional media strategies such as direct
mail and specialty advertising. Our intention is to rent a list of active snowboarders and skiers
from one of the ski and/or snowboard publications and to send a direct mail piece to each list
member. The rental cost of the list depends on its size as these are priced on a cost per thousand
(CPM) basis.
A list of 100,000 snowboarders and skiers between the ages of 16 and 28 may cost as much as
$2,000. Sorted bulk rate postage varies depending on the size and weight of the direct mail piece.
A tri-fold self mailer may cost as little as 13.9 cents each to mail. The cost to mail to a list of
100,000 equals $13,900. If we send a small (four page) catalog-style or newsletter-style mailer,
we can keep printing costs to a minimum (2 ½ cents per page or 10 cents per piece). If we pursue
this strategy, we can only afford one mailing.
A better strategy may be to design Radical Downhill post cards that invite addressees to visit our
web site. The post cards could feature seasonal themes custom designed by our local artists.
Mailing cost for sorted bulk rate postcards is 7.9 cents per postcard. The cost for postage is
therefore $7,900. The cost for producing these cards is less than five cents each (3.3 cents each
for orders of 450,000 or more). If we order 450,000 postcards, the total investment is $14,850.
The cost of four mailings is $31,600. The total cost of this direct mail sales promotion campaign
is $46,450.
Online Sales Promotion Strategy
Although it will take time to build a good e-mail list, our intention is to focus sales promotion
efforts on people who visit the site, purchase from our store, purchase from our site, or contact us
for more information. After we begin to collect e-mail addresses, we intend to launch an e-mail
sales promotion campaign. Visitors to the site will be offered e-mail coupons, discounts, limited-
time offers, and special offers.
We also intend to offer our site visitors an opt-in e-newsletter. The content of this e-newsletter
will focus on extreme skiing and snowboard events, competitions, and profiles of competitors. In
addition, each e-newsletter will contain hot links to special offers for that month. Assuming that
we don’t need to pay for an existing e-mail list, the cost of the Internet sales promotion efforts
will be less than $1,000.

Channel Strategies: Push and Pull
Most of the sales promotion money is to be spent on traditional media strategies such as direct
mail and specialty advertising. Our intention is to rent a list of active snowboarders and skiers
from one of the ski and/or snowboard publications and to send a direct mail piece to each list
member. The rental cost of the list depends on its size as these are priced on a cost per thousand
(CPM) basis.
Online Promotion/Advertising Objectives
Our goal is to generate traffic to our site by advertising the Radical Downhill site address
through traditional media and through e-marketing efforts. In addition, we will use a direct mail
campaign to inform current and former customers of our sites existence and address. The web
site will be an extension of our customer service orientation. By providing our current customers
with a way to “visit” us from wherever they are in the world, we seek to keep connected with
them. And by drawing new visitors to our site and encouraging them to become customers, we
seek to expand our customer base beyond our typical location-bound clientele.
Database Viral
Online Marketing Mailing Direct E- Online
Marketin Marketin
Goals Lists mail Sales
g g
Find Affiliates No No No No Yes
Gather Customer
No Yes Yes Yes Yes
Information
Improve Customer
No Yes Yes Yes No
Service
Increase
Brand/Name Possibly Yes Yes Yes Yes
Awareness
Sell Goods or
Possibly Yes Yes Yes Yes
Services
Enhance Company
Image
Engage in
Suggestive Selling
Generate Sales
Possibly No Yes Yes Yes
Leads
Online Marketing Checklist
To support the launch of our site we intend to pursue all public relations and publicity options
available. To establish brand equity, the press release will feature the Radical Downhill name,
then the custom-made skis and snowboards, rack systems, and local arts & crafts.
Mass Media Public Relations Strategies
In addition to Internet public relations, we will use traditional public relations media to support
our e-marketing plan. We will hold a press conference to announce our E-marketing business and
the availability of custom-made skis and snowboards on the Internet. Press releases will also be
sent to the Associated Press, various consumer magazines, industry magazines, television
stations, and radio stations. As with our Internet public relations strategy, we plan to consistently

place our message in front of reporters who can best publicize our e-tail site and retail store. We
expect to send a minimum of one press release per month to the media.
Mass Offline Communications Strategy
We intend to spend $75,000 on magazine print ads in specialty media such as Outside Magazine,
a magazine that has a broad appeal in both the extreme ski and snowboard community. Since our
products are priced at the top of the price range, we must also seek other methods of reaching our
target market such as specialty advertising. Table tents for ski area bars and lounges, drink
coasters and radical ski and snowboard posters are some possible specialty advertising items that
we may produce. With only $75,000 to spend, it is essential to get the most exposure for our
money.
Radical Downhill enjoys the benefits of positive word-of-mouth advertising. A majority of the
visitors to Big Basin stop by the ski shop during their vacation to purchase a Radical Downhill t-
shirt or sweatshirt. These items, by virtue of their unique artwork including Radical’s signature
snowboard with Mohawk hair and body piercing, are proof to others that you are in the “in-
crowd.” Radical Downhill will continue to change the graphics offered on their clothing on an
annual basis. This serves to stimulate demand and creates a collectors market (based on release
dates) for the t-shirts and sweatshirts.
Personal Offline Communications Strategy
We intend to use a direct mail campaign to inform potential customers about our site and to
invite them to visit. Our intention is to get four exposures per year from this campaign. Those
four mailings would need to hit the post office in October, November, December and January for
distribution in November, December, January and February. These are the four peak months for
ski and snowboard purchases as well as for car rack purchases.
Mass Online Communications Strategy
Our Internet advertising strategy is straightforward. We will register our website with as many
search engines as we can by using one of the commercial submission programs. These programs
list your site address with as many as 400 search engines, business directories, and online yellow
pages. We will resubmit every three months, coinciding with the beginning of each quarter, to
keep our site name at the top of the search engine’s site rankings. In addition, we will create a
banner ad and pay for its placement on numerous sites that appeal to extreme skiers and
snowboarders. The budget for Internet advertising is $12,000 with the bulk of the banner ad
placements occurring in the second and third quarters. There are currently 35 to 40 online
snowboard magazines to select from and on skinet.com, the premier online ski magazine from
the publishers of Ski magazine.
Affiliate Programs
All ski and snowboard instructors who are registered with the PSIA and who wish to participate
in our affiliate program will be provided with a unique affiliate identification number and will
have access to the affiliate section of our website.
Their incentive to participate is simple: if they sell any combination of ten pairs of skis or
snowboards, they will receive either a free set of skis or a free snowboard. The affiliates can
offer their friends, colleagues, students, etc. our custom-made skis and snowboards for 10

percent off the retail price. The instructors can either print out our order form from the affiliate
section of the website and have their customers order via mail or fax, or they can have customers
log in to a special referred customer section of our site by using the instructor’s unique affiliate
identification number.
Radical’s affiliate program for non-PSIA customers includes offering affiliates the following:
• Points rewarded for each 1000 referrals
• Points rewarded for each referral who purchases
• Ability to use reward points to purchase from the site
Affiliates will receive five points for each 1000 referrals that click through from their site to
Radical Downhill’s site. Points rewarded for referrals who purchase equals one percent of the
purchaser’s gross sale. Reward points are cumulative from season to season. Affiliates can
save their reward points for two to three seasons or more before cashing them in.
Personal Online Communications Strategy
During the initial year of our e-marketing plan, the bulk of our funds are dedicated to advertising
and sales promotion efforts. In subsequent years, most of the emphasis will be placed on Internet
direct marketing techniques. The success of an Internet direct marketing campaign depends upon
the quality of the proprietary and/or rented e-mail list. The biggest tasks during the first year will
be to collect e-mail addresses from store customers, e-tail customers, and visitors and from
extreme skiers and snowboarders in general.
Viral Marketing
Our viral marketing program will utilize a form of marketing well known in the ski industry. It is
essentially a referral program whereby ski and snowboard instructors registered with the
Professional Ski Instructors Association (PSIA) become area representatives for Radical
Downhill’s custom-made skis and snowboards. These instructors are the opinion leaders on the
ski slopes and have considerable influence over consumer perceptions and preference. We have
budgeted $10,000 to support our affiliate program.
Generating E-Mail Lists for Advertising and Sales Promotion
Radical Downhill has a database of its customers over the past ten years, but the information
doesn’t include their e-mail addresses. It is our intention to build a proprietary database of
customers and site visitors to which we can send messages. Site visitors will be asked to provide
us with their e-mail address in order to receive special promotions and discounts sent by e-mail.
Our list will be maintained and e-mail recipients will be provided with information on how to
remove their address from the e-mail list.
Potential Privac
Activities/Evaluatio Effectivenes Rate of
Costs Negative y
n s Return
s Issues
List Swap Low High High High Low
List Rental Low Moderat High High Low
e
Viral/Affiliate Programs Medium Moderat Low Low High
e

Site registration High Low Medium Medium Medium
Product registration High Low Low Low Medium
E-Newsletters Medium Medium Low Low Medium
E-zines Medium High Low Low Low
Give-aways/contests High High Low Low Low
Harvesting Low High High Medium Low
E-Mail List Acquisition Strategy Evaluation
Online Public Relations Strategies

The company plans to send public relations announcements to the web-based public relations
sites for immediate distribution. The goal is to manage our press releases and public relations
efforts so that there is a minimum of one press release per month.
Our communications budget is the largest portion of the total e-marketing budget. We have
allocated $97,000 for this task and plan to spend the majority of it in traditional media to build
awareness of the e-tail site, generate interest among extreme skiers, build their desire to purchase
our custom-made skis and snowboards, and prod them into action.
In subsequent years, we will rely less on advertising in traditional media and more on direct
marketing techniques.
Radical Downhill intends to seek the designation as an “Award Winning Site” by registering with
the known award providers and by submitting the site’s address on a quarterly basis. These
designations have a positive impact on the attitudes of casual surfers towards one’s site.
Finally, Radical Downhill will send out a monthly E-newsletter to its e-mail list in order to keep
their name in front of the customer twelve months per year. During the off-season months in the
northern hemisphere, the southern hemisphere is enjoying snow. Ski season in New Zealand,
Chile, and Argentina, three big ski countries in the southern hemisphere, begins in May and ends
in September.
Community Strategic Development
Radical Downhill has an established clientele and this clientele is Internet savvy. One of the
goals of the website it to provide non-local customers with a means to feel connected to Radical
Downhill and to other radical downhill skiers and snowboarders.
The people criteria that we will use to develop online community involves using opt-in e-mail,
customer loyalty programs, providing customers with the option of posting a one page
customized website and vanity e-mail addresses. The culture criterion that Radical Downhill will
use is the development of a Radical Downhill forum for the open exchange of ideas and
experiences. Online forums are known for fostering a sense of community and connectedness.
Easy navigation and fast loading graphics will be used as the technology criterion for building
community.
Place
In addition to serving our existing clientele from our principle location, we propose using pre-
existing package delivery channels to reach national and international clients. We plan to partner
with U.P.S. for domestic shipping and DHL for international shipping. U.P.S. stops at the shop

daily for deliveries or pickups. Radical already has a strong relationship with U.P.S. and it is the
easiest option in terms of familiarity with their service and trust in their ability to deliver as
promised. The customer pays shipping with their level of desired service determining the price.
Next day air is the most expensive and ground shipping is the least expensive.
Channel Management
Our distribution strategy, shipping by U.P.S. and DHL, will be evaluated on an annual basis to
determine whether or not customer expectations are being met. It is possible that at sometime in
the future Radical Downhill will select one delivery provider to handle all of its domestic and
international shipments.
Data and Projections

Our goal is to increase our gross sales by 30 percent by using online marketing. We will be using
the e-retailer model. That is, we are primarily a retail store offering custom-made skis and
snowboards to a niche market. Our sales last season were $1,700,000. To reach our goal, we need
to sell $510,000 worth of equipment, accessories, and arts & crafts online. Detailed financial
projections may be found in Appendix B.
Sales Forecasting Methods Used

Radical Downhill is pursuing an e-tailing model and therefore will use expert judgment to
predict the number of units that we will sell given the price of the custom-made skis and
snowboards. Based on our ten years of experience in the alpine sports retail industry, we
established sales targets for the products that we will sell online. The estimates are conservative.
Our fiscal year begins July 1 and ends on June 30. Our goal is to achieve $510,000 in gross sales
via the Internet for the fiscal year. One of the assumptions that we make is that the average
purchase price of a car rack system is $182.50 ($80 for mounting kit, $82.50 average bar price
and $20 for a ski or snowboard carrying kit). Because of the innovative technology and price,
demand for the rack system is expected to increase rapidly once we establish the brand in the
market. However, for the first year, we use a conservative estimate for the rack systems. Another
assumption is that any arts & crafts sold are considered “bonus sales” since we do not own the
inventory. Because we are selling the arts & crafts on a consignment basis, and to remain
conservative in our estimate, there are no sales forecast estimates for the arts & crafts.
Our sales forecast for each of the products is:
Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Skis 10 50 70 25 155
Snowboards 10 50 50 15 125
Accessories $10,000 $25,000 $35,000 $15,000 $85,000
Car racks 30 75 85 43 233
First year sales forecast by product line (all in units except accessories)

Sales Data
For the e-tailing model, the company has made conservative estimates for each product line by
quarter. The goal is to increase gross sales by $510,000 in the first year (30 percent) and
incrementally for the next couple of years. Given the proposed retail price of each product, the
year 1 sales revenue forecast can be summarized by the following table:
S Snow Car
Avg. $ Avg. $ Accessories Avg. $ Total
kis Boards Racks
155 $1,50 125 $1,20 $85,000 233 $182.50 $510,022.50
0 0
Year 1 sales revenue forecast
Below is the year one sales forecast figures by month followed by the sales forecast by quarter for three years.
Year 1
sales forecast

Sales by
quarter
E-Marketing’s Impact on Traditional Marketing Channels

Our e-marketing/e-retailing plans will have little impact on our traditional marketing channels.
The company will remain a regionally oriented alpine sports store designed to serve extreme
skiers and snowboarders, professional skiers and snowboarders, and vacationing skiers. If
anything, our online presence will enhance our image nationally and internationally. In a best-
case scenario, the publicity generated by our online e-tailing efforts and our custom-made skis
and snowboards will establish us as a destination retail store among the extreme skiing and
snowboarding market niche.
Costs
To support the e-tailing rollout and the marketing of custom-made skis and snowboards, Radical
Downhill estimates that it will cost $200,000 to accomplish its objectives. Because of the
seasonality of the ski business and the subsequent fluctuations in cash flow, Radical Downhill
seeks either a bank loan or private investment to raise the $200,000.
The primary budget assumption is that $200,000 is adequate capital for establishing an e-tail
website, advertising and promoting it and generating the targeted 20 percent increase in sales in
the first year. We have identified a web hosting service that will host our site for $24.95 per
month. The cost to register our domain name www.RadicalDownhill.com is $70 for two years
and $35 per year for each subsequent year. The cost for processing MasterCard and Visa
transactions is 1.8 percent of gross sales and for American Express transactions, it is 3 percent of
gross sales. Radical Downhill’s current bank will handle the processing of the credit card orders.
The $200,000 marketing budget is tentatively allocated as follows:
Activity Allocation

E-Commerce/Internet $30,000
Marketing
E-Advertising $80,000
E-Sales Promotion $50,000
E-Direct Marketing $25,000
Viral & Affiliate Programs $10,000
Global Aspects of E-Marketing $5,000
Total $200,000
Year 1 marketing budget
Financial Projections
Our financial results will be measured in terms of gross sales. Our goal is to increase gross sales
in the first year by $510,000 and incrementally in future years, with a target of 30 percent growth
per year in year two and beyond. This translates to an increase in sales in year two from
$510,000 to $663,000 via e-retailing. Estimated gross profits, based upon the sale projections,
exceed $352,000 in the first year. Our desired investment payback period is five years.
The chart below summarizes the e-marketing expense budgets by quarter for the next three years.
E-Marketing Expenses by Quarter
Organization
Radical Downhill’s organizational structure appears below. It shows the key personnel who
report to the owners. Below this level are both the full-time and part-time employees of the
Company.

At present, Radical Downhill operates with full-time employees in only essential positions.
Seasonal help is added as needed and Radical Downhill enjoys the benefit of possessing a cadre
of trained, qualified seasonal sales help that returns each year.
President & CEO

(Owners)
Accounting & Manager of Manager of Retail Inventory

Accounts Payable Technical Services Mgmt./Shipping
Services and Receiving
Hardgoods Softgoods/
Buyer Accessories
Buyer
Implementation Plan
The successful implementation of the marketing plan depends upon the development of a
successful online marketing strategy. The components of that strategy include items such as
website content, traffic management, and tracking web activity. Additional factors needed for
success include securing through outsourcing a capable Internet marketing development firm and
striving to launch the website in a logical and effective manner.
Website Content
The website must appeal to the extreme skier and snowboarder market. It must be visually
stimulating, energetic, and hip. In addition, it must also appeal to a wider audience in order to
assure the level of sales desired. These are the overall specifications for the site. Furthermore, the
site will not be too graphic intensive and will load quickly on a wide variety of browsers and it
will contain general information about extreme skiing and snowboarding in addition to
information specific to Radical Downhill’s purpose.
Finally, the site will be designed for the purpose of gathering information on visitors and
customers in order to establish a database. In future years our online sales will rely more on
database marketing efforts, e-mail marketing efforts, and affiliate programs.
Traffic Management
Traffic generation and management is a consistent sub-theme throughout the e-marketing plan.
We intend to register our web site address with all of the search engines and can manage this task
in-house by purchasing site submission software. We will use traditional advertising and Internet
advertising to inform potential customers of our site’s address. We will use a direct mail
campaign to increase awareness of the site and to drive more traffic to our site. We intend to

build a proprietary e-mail list and customer database by expanding our current customer database
to include critical data such as e-mail addresses. After gathering e-mail addresses by either sales,
site visits, or by list rental, we will launch an e-mail advertising and promotion campaign
designed to entice the recipients to visit the site. We will also write and distribute a one-page e-
newsletter that our customers can sign up to receive (opt-in). This monthly newsletter will be
informative and provide an additional contact with our customers. Customers who receive the e-
mail newsletter will also receive information on special promotions and sales.
The content on our site will change biweekly during the season to reflect the seasonality of the
industry. While the overall look and navigation of the site will remain the same, the information
presented will be timely, accurate, and entertaining. If we do our job correctly, not only will sales
increase as expected, but the number of customers coming to the store every season will also
increase, as we become a destination store.
Tracking Web Activity
We have the ability to track hits, unique ISP’s, pages viewed, time on site, and sales volume for
our site. Our ISP provides many of these statistics. We may partner with a site diagnostic service
to obtain more in-depth information about our visitors such as their viewing
history/characteristics and what other pages they visit prior to and after visiting our site. The data
collected in the first year of operation will become the basis for future comparisons.
After one year of operation, we will make a decision as to whether to continue with the e-tail site
or to convert it to a general information site. Our main concern is whether or not the site is
meeting our sales objectives. A secondary concern is how to improve the site and increase sales
in subsequent years.
People Required
Radical Downhill does not currently possess the personnel required to launch this effort
internally. We intend to “job-out” website development, hosting and maintenance to a firm that
specializes in e-tail website development and management. After the initial launch of the
website, Radical Downhill will take over the maintenance and management of the website once
it is deemed profitable to do so – that is when the cost of paying the outside consulting firm
exceeds the cost of hiring a web/information systems specialist. At that time, we will add another
full-time position to the staff for a Manager of Information Systems. This support position will
interact with the other members of the management team to build a cohesive interactive
information system including inventory management, POS, accounting, etc.
Timing
Introducing the online retail side of the business is a complex task and requires coordination of
production and promotion. The anticipated launch of the website is during the last quarter of
business (May or June). The logic for this decision is as follows: a fourth quarter roll-out will
allow us to track the success or failure of our online marketing efforts for an entire year, and
business volume in April tapers off to a trickle until the summer mountain bike, climbing and
hiking season kicks in.

Evaluation and Control
Quarterly sales projections and website traffic projections have been developed. Actual sales and
website traffic will be compared with these targets and the marketing program will be modified
to reflect changes in the external environment. Our sales goal is to increase gross sales by a
minimum of $510,000 in the first year, the bulk of which should come from online sales.
Another objective is to generate about 4,000 hits per month (1,000 hits per week) and to grow
that to about 6,000 hits per month (1,400 per week) by the end of year 1. Below is a projection of
hits and page views for year 1.
Hits and
page views – projections for year 1
The tasks necessary to accomplish these objectives will be funded by the e-marketing budget
detailed in a previous section. The bulk of the promotional effort is dedicated to advertising, with
an emphasis on using traditional advertising to move the target market through the phases of
awareness, interest, desire, and action. The e-marketing budget is high for the first year in order
to allow us to establish a strong web-presence. It will be substantially lower in subsequent years
as we rely more on e-mail marketing, cybercasting, and affiliate programs to build sales.
Marketing Information Systems Needed

Because of the shop’s existing network and DSL connection, hardware and software costs are
minimal. The major cost associated with this project will be the development of a website that is
appealing to the market niche and capable of processing orders. The e-retailing environment
needs to be secure in order for shoppers to feel comfortable about entering their credit card
numbers online. We already use IBM-compatible PC’s as our Point of Sale machines and gather
information on each customer such as name, address, and telephone number. It isn’t too difficult

for us to add another field to our database in order to capture each in-store customer’s e-mail
address.
Criterion Measures with Objectives

Radical Downhill is using an e-tail Internet business model. The success of this form of e-
commerce depends on the generation of sufficient numbers of qualified site visitors.
Our objective is to generate 1,000 hits per week. Our hosting service provides us with statistics
on a weekly basis. These statistics allow us to chart the number of hits per day/week/month, the
referring website if applicable (which search engine the customer used to find us), the viewer’s
country of origin, and the browser that they use.
All visitors to the site will be asked to register to access the site by entering their e-mail address
as their username and by selecting a password. This will allow us to track repeat visitors and to
build a database about each visitor’s purchases, favorite areas of the site, length of time spent on
the site, and preferences. We will encourage registered visitors to return to the site by holding
product drawings and by sending targeted e-mail. Information can also be collected regarding the
average number of visits prior to purchase, the average amount of purchase per customer, and the
number of repeat customers.

Appendix A: Biographies of Key Personnel
Robert Gonsalves
Robert Gonsalves received his MBA degree from Stanford University in 1982. He received his
undergraduate degree in 1980 from the University of California - Berkeley where he majored in
marketing with a focus in international business. After his graduation from Stanford, Mr.
Gonsalves joined a management consulting firm where he specialized in formulating market
entry strategies for clients. Born in Salem, Massachusetts, he is fluent in English, Spanish and
Portuguese. He began skiing at age 6 and became a ski instructor at age 18. His passion for
skiing and outdoor sports has never waned. He continued as a part-time ski instructor (weekends
when available) until opening Radical Downhill with his wife in 1991. He was offered a
partnership in the management consulting firm in 1991 just after he announced his intention to
leave the firm and move to Colorado.
Julie (Glatre) Gonsalves

Julie Gonsalves received her Juris Doctorate (J.D.) in Law degree from Suffolk University in
1984. She received her undergraduate degree in 1981 from the University of California –
Berkeley where she double majored in accounting and French. After graduating from Suffolk,
she passed the California State Bar Exam (Fall, 1984) and joined a San Francisco law firm
specializing in corporate law and international trade. Born in Grenoble, France, she is fluent in
French, English and German. She began skiing at age 4 and became a ski instructor at age 19
while in college. She met Robert while teaching for the same ski school. Her passion for outdoor
sports has never waned and she also continued as a part-time ski instructor while employed at the
law firm. She became a partner in the firm in 1990 after a rapid rise through the ranks because of
her expertise in international contract law.

Appendix B: Support Material
In the pages that follow are several key e-marketing forecasts and budgets. These projections support this e-marketing plan.

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Radical Downhill

123 Mountain Ridge Road

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Strategic Focus and Plan

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Core Competency/Sustainable Competitive Advantages

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Location Seasonal business

SWOT Analysis Chart

Market – Product Focus

Marketing and Product Objectives

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Perceived Moderate to Moderate to Moderate to

Competitive Comparison Matrix

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Product Model Characteristics Sizes

Slalom ski with Giant

Wider profile than a

Rack System Four feet, pads and Varies by automobile

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Sold in groups of Skis, snowboards,

Rack System Aqua kits Sold individually Kayak, canoe, sailboard

Specializing in silver Bracelets, necklaces,

Numbered prints by Nature and action

Oil and Water color

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Glazed and unglazed

Native American Native crafts that are

Product offerings and their descriptions

Augmented Product Definition

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Outer Limits $1,500 $450 70 percent

Avalanche $1,500 $450 70 percent

Back Bowl Busta’ $1,200 $360 70 percent

Der Terminator $1,200 $360 70 percent

Rack Mounting kit $80 $40 50 percent

Carrying kit – ski $20 for 2 $10 50 percent

Carrying kit – bike $45 each $22.50 50 percent

Wholesale prices and margins

Dynamic Pricing Strategies

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Online Public Relations Strategies

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Data and Projections

Sales Forecasting Methods Used

Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

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E-Marketing’s Impact on Traditional Marketing Channels