Anderson Sports

Marketing Plan
By Nick Anderson

Table of Contents

Executive Summary .............................................................. Page 2-3 Marketing Plan Part 1 Situation Analysis ........................... Page 4-5 Marketing Plan Part 2 Marketing Objectives ........................ Page 6 Marketing Plan Part 3 A Target Markets ............................ Page 7-8 Marketing Plan Part 3 B Managing the Product .................... Page 9 Marketing Plan Part 3 C Pricing the Product .................. Page 10-11 Marketing Plan Part 3 D Promotional Strategies ............ Page 12-13 Marketing Plan Part 3 E Distribution Strategies .................. Page 14

Marketing Plan Executive Summary Description of Product/Service

Anderson Sports sells top of the line new and used sporting equipment for the entire family specializing in hockey, baseball, football, and golf. We carry and buy and sell basketball, soccer, and snow sports equipment as well. Anderson Sports was established in 2010 and is located in Cottage Grove, MN. Anderson Sports is a family owned and operated business with a knowledgeable staff that provides superior customer sales and service to our customers. We are very involved in the community with sponsorships of local sports teams and local sports complexes.

Description of Target Markets

The primary target market for Anderson Sports is young athletes that are involved in multiple sports throughout the calendar year. We buy and resell used and recycled equipment which provides a more cost effective way for families with young athletes involved in multiple sports throughout the year. The secondary target market for Anderson Sports is men and women between the ages of 18 to 60 that are sports enthusiasts. The target markets of Anderson Sports are from young athletes to lifestyles involving recreation and exercise that desire a knowledgeable and professional experience.

Overview of the Marketing Plan

The marketing plan for Anderson Sports is to increase our sales by 15% and to increase our repeat and loyal customer base by 50 every year. Anderson Sports buys their sporting equipment and products through wholesalers and suppliers of the top manufactures in the sporting world today. Anderson Sports also buys used and recycled equipment as well providing its customers with the best of both worlds new and used. With 50% of the communication budget, public relations will be used in sponsorships of local sports teams, and equipment demos at local sporting complexes. 15% of our budget will be used in advertising to run cable TV commercials, local newspaper ads, and billboards and flyers at local sports complexes in our community. 20% of the budget will focus on personal selling with our superior customer service and training of our employees. The last 15% of our communication budget will be in sales promotions with coupons and package deals in equipment and the services we provide at Anderson Sports.

Relationship of the Mission, Objectives, and Strategy

The mission of Anderson Sports is to provide a superior service and an unforgettable experience to our customers as well as the communities that we are involved in. Anderson Sports continues to grow every month and hopes to open another location in the near future in the northern metro of the Twin Cities while providing more opportunities to the sporting communities and their employees. Anderson Sports will monitor their marketing objectives, communication budget, and overall strategies through customer surveys, and invoice and sales records. Anderson Sports is a family owned and operated business and the owner will oversee and assist in all areas of the marketing plan to attain continued success in the sporting goods business.

Marketing Plan Part One

Description of Company
Anderson Sports sells quality new and used sporting good equipment for the entire family specializing in hockey, basketball, baseball and football. We sell golf, soccer, and snow sports equipment as well. The company was established in 2010, located in Cottage Grove, MN. We are open Monday- Saturday from 9am to 7pm and closed on Sundays. Anderson Sports currently operates out of a 5,000 square foot store front facility which consists of a retail store and stockroom.

Internal Environment
Anderson Sports has been in business for two years providing outstanding customer service to its customers with its knowledgeable staff (family owned and operated) and properly fitting entire families with the right equipment for their sports interests and teams. Anderson Sports hopes to expand their business to the northwest metro in the near future by opening a second sport shop. We carry all the major brands of sporting equipment like Bauer, Nike, Easton, etc. also have a huge selection of used equipment for the families with multiple children in sports or on a budget. It is our commitment to bring the customer the top of the line equipment at the lowest price possible. We are very active in the local communities in sponsorship of several youth and adult sports teams, as well as the adopt a highway program in Cottage Grove, MN.

External Environment
Anderson Sports is a domestic market company catering to athletes and their families in Cottage Grove, MN and its surrounding communities. There biggest competitor is Play it Again Sports who is also the largest retailer of new and used sporting goods in North America. Anderson Sports is the only sport shop in the city of Cottage Grove, MN home to 35,000 people which make it unique to the city and the surrounding areas like Hastings, MN, Rosemount, MN, and Prescott, WI, to name a few areas where its customers come from to purchase sporting equipment and accessories. Anderson Sports has online competition as well in the hockey industry with Hockey Giant that caters to the global market. Anderson Sports has many loyal satisfied families and customers in its market place and continues to grow every month.

SWOT Analysis

SWOT TABLE Internal

Favorable Strength Family owned and operated Personal and Knowledgeable Service Location of the Business Opportunities Self-Employment Expansion Opportunities Local Community Interest

Unfavorable Weakness Inventory/Product Financial Position Little Market Presence Seasonal Sports

External

Threats Competition Price Wars Online/Internet Shoppers

Marketing Plan Part Two-Marketing Objectives

The overall marketing objectives for Anderson Sports are to:

Increase sales by 15% Increase average transactions by 10% Increase repeat customers by 50 as measured by invoice

The specific objectives are to:

Increase sales of skate sharpening packages by 15 Increase scrambled merchandising in store by adding five new categories by the register Increase brand recognition by 15% from survey responses

The overall and specific objectives are related. The specific objectives include increasing skate sharpening packages. This will in turn increase the overall sales by 15%.

Marketing Plan 3A Purchase Decision Behavior

The purchase decision behavior for customers of Anderson Sports store starts when my customers recognize there is a need or a problem with for sporting goods. The information search is easy for my customers because we carry all the major brands and offer very competitive low pricing and offer discounts as well as used sporting equipment. The purchase decision for my customers is very easy because we are the lowest priced top of the line sporting goods store in the area. The post purchase behavior is always a positive experience to my customers as the business is growing more and more with every season. The three specific factors that influence the decision process are the family of my customers who are loyal to Anderson Sports. Friends of my customers as well with word of mouth advertising and specials that we offer for the different seasons, and coaches of different sports teams are also a huge factor influencing purchases at Anderson Sports because we have developed strong relationships with associations, clubs, and organizations that have created a very loyal customer base. Customers avoid throwing equipment away by selling it back to us.

Market Segments and Characteristics

Geographic Segmentation
Live within 15 miles of Cottage Grove, MN Work within 15 miles of Cottage Grove, MN Southern metro area of MSP

Demographic Segmentation
Age 3 - 60 Income at least $35,000 Hobbies-enjoyment of sporting activities

Psychographic Segmentation
Sports enthusiasts Similar interests-family Recreation including seasonal activities

Target Market
The primary target market for Anderson Sports is from the demographic segmentation category, families with one or more children that play several sports throughout the year. The secondary target market for Anderson Sports is from the psychographic segmentation category by lifestyles. Birds of a feather flock together. Anderson Sports targets men and women of all ages who are sports enthusiasts. I think the target market that has the most potential for Anderson Sports and their main focus is demographic segmentation in families with children in sports because there are a lot of sports figures nowadays that children look up to and want to be like.

Positioning
I see Anderson Sports products and services are high quality and priced low. We offer top of the line new and used sporting goods and services. For a care-free and stress-free sporting experience Anderson Sports offers the best prices in the area and exceptional customer service.

Marketing Plan Three B-Creating and Managing the Product Product Description
Anderson Sports sells top of the line sporting goods and provides superior customer service. The benefits of buying from and using Anderson Sports are a higher percentage of money on trade-in for used equipment, a very knowledgeable staff, and Anderson Sports is very involved with the local community. Anderson Sports is very convenient and specializes in sporting equipment for most sports. The lifecycle stage of Anderson Sports is in the growth stage. When customers come to Anderson Sports they are provided with outstanding service and they tell other consumers about their experience which has allowed Anderson Sports to continually grow our customer base.

Product Line/Product Mix Strategy

Anderson Sports provides a huge selection of products and services; however the depth varies on the time of the year for seasonal sports. The strategy Anderson Sports has is to stay in the growth stage and open more shops throughout the Twin Cities metro area becoming a chain retailer expanding and serving their customer base that continues to grow month after month.

Packaging and Branding

Anderson Sports packaging is our company logo which is private labeling. The Anderson Sports logo is on our shopping bags, hats, shirts, sweatshirts, warm-up suits, etc. Our employees wear polo shirts with the company logo as uniforms and Anderson Sports also has a neon sign on the outside of the store front as well as posters and banners at sports complexes in and around the community. Anderson Sports is working with some of its manufacturers and suppliers to get a multi branding strategy in place to put Anderson Sports logos on hockey bags and certain sports products that are available.

Service Quality
The service that Anderson Sports provides is sporting goods and services. Anderson Sports provides fitting and sizing, information about equipment from our knowledgeable staff, skate sharpening and equipment repair. Above all Anderson Sports creates a positive experience for all its customers with our superior customer service and satisfaction. Anderson Sports in the near future is developing a rental plan or policy for sports equipment and plans on having demo days throughout the year at local sports complexes for consumers to test some of the products we carry before the purchase them.

Marketing Plan 3C Pricing the Product Pricing Objectives

Sales- Penetration pricing to increase package sales Market share- Below market pricing to create loyal customer base Satisfaction- Odd-even pricing to beat competitor pricing

Demand for Products and Services

Anderson Sports has a seasonal demand for some of its products and carries equipment for sports year round. The competition between sporting goods stores is fierce, however Anderson Sports separates themselves from their competitors with its used quality equipment which creates an elastic demand for Anderson Sports products.

Costs
The fixed costs for Anderson Sports are building mortgage and insurance, utilities, weekly advertising in the local shopper, and inventory and shipping cost from their manufacturers and suppliers. The variable costs for Anderson Sports vary on the sport and manufacturers both used and new equipment. Anderson Sports carries all the major brands of sporting equipment and accessories.

Pricing Environment
The pricing environment and overall economy for Anderson Sports is solid. Lots of people play sports for fun and recreation as well as for competition, especially families with children in sports these days and equipment and accessories are needed and we provide that to our customers. The trends that Anderson Sports are involved in are Lacrosse and Snowboarding and carry all the necessary equipment for these trending sports. Anderson Sports sets themselves apart from the competitors with their used sporting equipment.

10

Pricing Strategy
Anderson Sports uses a few different pricing strategies. Penetration pricing is used to increase skate sharpening package sales. Below market and odd-even pricing strategies are used to beat our competitors prices, increase sales, and to create a loyal customer base.

Pricing Strategy Implementation

The pricing strategy implementation will be offered through discounted new and used equipment versus our competitors prices on multiple products for all sports. Anderson Sports has a company website for customers to view our products and services and hopes to become an online distributer of their products in the near future. Anderson Sports takes great pride in serving sports enthusiasts and their life styles with their superior customer service.

11

Marketing Plan Three D-Advertising & Sales Promotion Strategies Communication Objectives
Increase awareness that used beats new when buying youth equipment. Purchase at a reasonable price through us. Knowledgeable staff and superior customer service.

Budgeting Method
The budgeting method that Anderson Sports uses is a combination of the all you can afford and the percentage of sales methods. Anderson Sports relies on word of mouth and local community advertising heavily. Anderson Sports also believes that the profits made are put back into the business for future expansion to the northern Twin Cities metro area.

Approaches
The majority of Anderson Sports budget (50%) will be in public relations in the sponsorship of local sports teams as well as sporting equipment demos at local sporting complexes. Advertising will include (15%) of our budget with local cable TV commercials, local papers, and flyers, billboards at the local sports complexes in the community. Personal selling is a key factor in Anderson Sports success with our knowledgeable staff which in turn increases our overall sales and creates word of mouth advertising through the community with customer satisfaction (20%). Anderson Sports has a very loyal customer base and sales promotion take up (15%) of our budget through skate sharpening packages as well as coupons to draw the non-loyal customers in.

12

Communication Budget

With our 50% of the communication budget public relations will be used in sponsorships of local sports teams, and equipment demos at local sporting complexes as well as our 15% of our budget in advertising will be used to run cable TV commercials, local newspaper ads, and billboards at local sports complexes in the community. 20% of our budget will focus on personal selling with our superior customer service and training of employees. The rest of the communication budget 15% will be in sales promotions with coupons and packages in equipment and the services we provide at Anderson Sports.

Effectiveness of Communication
Anderson Sports will monitor its communication program through customer surveys as well as through their sales invoices and records. Anderson Sports is a family run business and the owner will oversee and assist in all areas of the communication program to attain success in the sporting goods business.

13

Marketing Plan Three E Distribution/Supply Chain Strategies Distribution Channel

Anderson Sports provides sporting equipment and services to their customers from all the top manufactures in the sporting equipment business through wholesalers. Anderson Sports buys sporting equipment and accessories from suppliers and distributors of all the top manufactures like Easton, Bauer, Nike, Wilson, and many others. The products and equipment delivered to our location in Cottage Grove, MN. We also buy used and recycled equipment form our customers to provide top of the line equipment at low more affordable prices to our customers.

Distribution Strategy
The distribution strategy that Anderson Sports uses is a conventional marketing system. Anderson Sports uses this strategy to maximize their own profits, as well as bringing only the best products and equipment to their customers, also providing them with superior customer service and satisfaction. Our ability to get products at cost or often below cost form our wholesalers allows us to maximize our profits and beat our competitors pricing, giving our customers the best price possible.

Distribution of Products
The products that Anderson Sports offers to their customers from the manufacturers and suppliers are mostly of intensive distribution. However some of the products are selectively distributed due to some of the manufactures rules and regulations on limited retailers that carry them or a certain geographical area. Anderson Sports however buys used and recycled equipment and we are able to carry certain products (limited quantities and styles) that some of our competitors are not allowed to carry making us at Anderson Sports somewhat of a specialized retailer as well.

Logistical Functions
Anderson Sports prides itself on its superior customer service that they provide on a daily basis. Being that Anderson Sports buys and resells used and recycled equipment we have a wide variety and selection available for all our customers needs. Anderson Sports has a stockroom in the back of their store for overstock of equipment and seasonal sporting equipment that may not be in season to allow more space for the sports that are in season. In the purchasing of used and recycled equipment and accessories Anderson Sports is a small independently and family owned and operated sporting goods retailer and has need for warehousing their products at this time. We also buy and sell new sporting equipment from wholesalers and distributors from all the major brands in the sporting world. All the logistical functions of Anderson Sports work to the lowest possible cost of buying products and selling them to our customers at the lowest possible prices. Why pay full price when used is just as nice.

14