In this proposal we discuss the marketing plan of our sportswear company Peak Performance. We start by explaining how and why we started our business the way we do, including our mission statement and goals. The plan presents an in-depth analysis of our target market and how we plan to position our business for that target market. You will also find a SWOT analysis, a description of our product development goals, our pricing strategies and the online shopping experience with us. We then explain how our promotion strategies work and how we measure marketing success at Peak Performance. The plan ends with an overview of our limitations. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayWho we arePeak Performance is an innovative online retail company established in 2010 specializing in comfortable workout clothing for all body types. Because the company celebrates the individuality and uniqueness of every human being, we created a clothing line based on body shape and size. Using body mass index statistics, Peak Performance developed an alternative sizing system for its clothing line to fit people of all shapes and sizes. Peak Performance's sizing system is different from other traditional clothing retailers. The sizes, based on body shape, correspond to colors instead of the traditional ones: “small, medium, large, x-large”. Female body shapes include: bean green, carrot orange, peanut beige, pear yellow, and apple red (shown in Figure 1 below). With both men's and women's sizes, as the sizes grow, the shade of each "size color" becomes darker. Figure 1 Male body types include: eggplant purple, leek green, beet red, and parsnip yellow (shown in Figure 2). below). We provide informational charts and videos about body proportions (height measurements and body shape) and their corresponding color on our website to help new customers navigate our sizing system. Figure 2Peak Performance is an environmentally conscious company that uses recycled materials to create its products. Using innovative technology, Peak Performance has invented and patented a new breathable material called polyethrinite. This material is perfect for workout clothing because it's lightweight, flexible, and doesn't shrink. Polyethrinite is also highly sought after because it is an inexpensive material, costing only $0.06 per square meter. This material is manufactured and processed into the unique training shirts that Peak Performance creates just three miles from our site, making our deliveries extremely efficient. To create polyethrinite, Peak Performance holds drives across America to gather used cotton and polyester shirts, which are transformed into polyethrinite using Rev's chemical technology. To increase the incentive for donations, Peak Performance has partnered with Yellowstone National Park, Yosemite National Park, and Bryce Canyon National Park. They offer free admission for three days to the parks as well as accommodation for three days and three nights to groups who donate more than 2,000 used shirts to Peak Performance on each trip. Each group must consist of less than ten people and trips cannot last more than eight days.VisionAt Peak Performance, our vision is to seeMore Americans are becoming active in their everyday lives and feeling more comfortable in their bodies through the clothes they wear. . We are also committed to recycling and keeping the earth green. Through innovative processes, we have created a recycled material that is perfect for both comfort and the environment. Mission Statement “Peak Performance's mission is to care for athletes and everyday people trying to get fit by providing them with comfortable, sensible sportswear and for the environment by giving new life to used products through to recycling. »Goals from current year1.Sales of one million shirts by the end of the year2. Increase sales by 10% each year3. On average 50,000 clicks on a web page per week4. Reach three million people via social media every year5. Reach an additional 500,000 people each year through advertising6. Receive an A+ rating from the Better Business Bureau every year. Market Segmentation In order to identify our target markets and tailor marketable benefits to each group, the entire market has been segmented into smaller groups based on geography, generation demographics and customer perception. self, gender and ethnicity, income. , and the psychographics of health or environmentally friendly social trends. Target Markets Geography Peak Performance is an American online retailer that operates only in the United States. Since all materials and products are made and sold in America, feelings of patriotism drive supporters of the American companies we target to purchase our products. We also donate a portion of our sales to maintain national parks, so adventurers who take pride in their land are also encouraged to purchase our products while supporting an environmental cause. Generation and Self-PerceptionOur target generational cohort is Millennials or Generation Y, both male and female, aged 18-30. We found that the negative stigma that millennials are “entitled” to gave us leverage to motivate them to have a positive impact on society. When studying other companies that donate money to social causes (like Love Your Melon, Toms, etc.), our research showed us that 68% of sales come from millennials. It appears that millennials are eager to break away from associated negative stereotypes by supporting businesses that are driving social change. Peak Performance also specifically caters to those who are sensitive to their body type with an emphasis on not having traditional size names: petite, medium, and large. – which often provokes negative reactions. This includes people with minority body shapes that are often not carried by major retailers, giving Peak Performance the opportunity to target a currently underserved market segment. With feminine body shapes aimed at women, both lines offer the flexibility to switch between the two. This means that if a person has a body type that is more plant (traditionally associated with men) than fruit (traditionally associated with women), they can choose the items that best fit their body type without worrying about traditional size differences between both. genders.Our company also expands beyond ethnic confusions by producing a range of clothing styles that appeal to different ethnic groups across America.IncomeOur target market is also people with middle-class incomes. We decided thenfrom creating our outfit that we wanted our clothes to be expensive enough so that we could make a profit, be able to donate a sufficient amount of funds to our cause, and give our items the appeal of being high quality simply by being more expensive than low price. retailers like Walmart. We do not consider our prices premium because the cost of selling is not significantly higher than the cost of creating each item; however, our prices are consistently slightly higher than those of our competitors. Because our store is entirely online, we also need to reach people who can afford to access our store to make online purchases. Psychographic Characteristics and Social Trends Customers who want to be healthier and are trying to “get in shape” but don’t know where to start. are a prime target market for Peak Performance. By researching post-purchase feelings after purchasing exercise equipment, we found that 88% of consumers feel little or no regret about purchasing exercise equipment, and 52% of consumers believe their new purchases will motivate them to change their lifestyle. . This showed us that customers feel psychologically satisfied after purchasing workout clothes. Thus, our product meets both functional and psychological needs. Fashionable activewear also helps consumers feel more confident when entering a gym and workout room. A recent study by the American Psychology Association found that people who wore workout clothes they found attractive were 32% more likely to enter a gym and would stay there twice as long as if they weren't dressed in something they felt. was attractive. This shows us that psychological views about physical self-image play an important role in influencing people to exercise. Our business also appeals to those already focused on health and wellness issues. We found that over the past five years, gym memberships have doubled since 2012, grocery store Sam's Club saw a 42% increase in product sales, and Vitamin Shoppe saw a 60% increase. of its vitamin sales. While these findings don't necessarily prove conclusively that Americans are more health conscious today than ever before, they certainly seem to support that claim. We also tracked various studies from the US Center for Disease Control and Prevention and found that rates of obesity, hypertension and type 2 diabetes have each doubled over the past ten years, making it even more necessary a healthy lifestyle. follows eco-friendly social trends and is aimed at environmentally conscious people. Our production process recycles used cotton and polyester t-shirts into new activewear, and we donate a portion of our profits to national parks for their upkeep. Those who donate can enjoy three days of free entry and overnight accommodation to these national parks while wearing their new eco-friendly activewear during their stay. PositioningTo better understand our target market , we conducted research on some of our competitors. The most notable are REI, Duluth and Tentree. Tentree is the company we have researched the most because, like Peak Performance, Tentree donates a portion of its sales to aenvironmental cause, notably to plant trees around the world. By further examining these outerwear companies, we were able to determine what their demographics are, how they typically price clothing, and what they do for sales promotion. We could also see how our customers would rank us against these companies and draw up a comparison chart to see where we stack up against our competitors. As an entrepreneurial company, Peak Performance found it necessary to understand our competitors in order to know where we stand. compared to them. We differentiate ourselves from our largest competitor, Tentree, because our shipping and returns are free to the consumer and our products are recycled. We leverage these differences in our marketing campaign to show that we are an eco-friendly, premium retailer. Customer ExcellencePeak Performance is committed to making customers its top priority. To make the customer experience the best possible, we start with the employee experience. We know that a happy employee makes a happy customer, which is why we continually strive to make our employees a priority. Every employee is treated with the same respect and compassion we want our customers to be treated with, and we see the results every day. It is essential to maintain positive relationships with customers. We want loyal, repeat customers to come back to do business with us because they are more than satisfied with our service. To facilitate these relationships, we have employees ready to respond to concerns and questions 24/7 via online chat or by phone at 555-555-3429. We also have sizing experts who are ready to help customers determine what "product size" is so they don't have to worry about shipping products. In the event that an item does not fit properly or was improperly packaged, Peak Performance offers free returns to any customer. This encourages new buyers to try our products due to the low risk associated with a purchase, and encourages returning customers to continue shopping with us and try new styles and colors of items. We also offer a loyalty program to everyone. customers who register with an email address to receive specially priced promotional materials from us - which would not otherwise be available to customers. Our program also rewards customers who fill their wardrobe with our products by offering one free shirt for every seven shirts purchased. These shirts have a special branding on the front that we use only for these free shirts, marking the customer with a sort of badge of honor for purchasing from us. We develop new designs for each “level” a customer arrives at (i.e. first design as eighth shirt, second design as sixteenth shirt, etc.). This program benefits our customers because they receive a free jersey, and it also benefits Peak Performance because we receive free advertising on the jerseys we offer. With every special edition Peak Performance shirt we offer, a handwritten thank you note accompanies the package. We think this is a special way to show our appreciation to our customers. This also limits the post-purchase anxiety our customers will have because they feel good about the donation their purchase created to help maintain our national parks. While we create our shirts from recycled shirts, we also strive to thankeveryone who donates recycled shirts to our company. Each shirt donor receives a handwritten note thanking them for donating to a worthy cause. We also offer them 20% off their next purchase to encourage them to shop with us again. Peak Performance understands that customers want their products as quickly as possible. Just as the consumer can purchase our products 24 hours a day, we pack orders 24 hours a day, this way all our products are shipped as quickly as possible. While other companies' products ship within 5-8 business days, we ship products the same day they are ordered. With Rev being located so close to us, we see no reason why our shipping process couldn't be efficient. SWOT AnalysisInternal Strengths and WeaknessesAs a company in the apparel industry valued at $225 billion in 2012, Peak Performance has heavily evaluated its internal strengths and weaknesses. weaknesses. One of the company's greatest strengths is the direct online sales of our company to our customers. Without middlemen, we have the power to ensure that the product reaches the customer, from easy ordering to on-time delivery. Our product and store are accessible virtually anywhere. Second, by selling only in the United States, we can avoid customs duties, quotas and exchange rates. Additionally, our geographic location in the Western United States is an advantage for us as we support three regional national parks. Many of our customers are knowledgeable about parks and enjoy purchasing from us because they want their local parks to remain in excellent condition. We also conduct ongoing research and development activities to improve our products and increase the value of our products and our business. Although our online retail sales will be strong, not having a storefront for customers to physically experience our products and services could potentially reduce our number of sales. and gross profit due to the number of consumers who do not yet shop online or prefer a traditional retail store. Additionally, although we offer a line of sportswear, our reliance on primarily producing and selling shirts could pose a risk if such sales decline. External Opportunities and Threats By analyzing the external environment, we assessed opportunities and threats on a larger scale. With the constant evolution of social trends like fashion, the demand for new products with new materials and designs remains. The online clothing sales market is growing and is expected to grow by 10% each year over the next ten years. As the population would increase by five million people per year, we would expect the quantity of clothing demanded to increase. As the population increases, it may become more difficult to provide transportation, which will also contribute to the growth of online clothing sales. All of this aligns our online position with the future of the market. The United States is increasingly becoming an athletic and exercise-driven society, and as that evolves, so does the demand for performance clothing. Unlike competitors, our goal is to become a revolutionary brand that clothes athletes for everyday people trying to exercise more. That's why our shape sizing system is popular with culture in the United States. Even though we are starting in the United States, the opportunity to expand into any area of ​​the marketglobal remains an option for the future. However, our company will have a small market share because we are a small, non-global company. We will face fierce competition from competing international and domestic brands, such as Tentree. Securing the brand and producing materials to have inventory so that customers get the products as quickly as possible will and is also a risk. ProductAt Peak Performance, we create breathable, stylish sports gear for all body types. We are best known for our quality athletic shirts, available in long sleeve, short sleeve and sleeveless so athletes can stay at the peak of their performance. We have sizes for both male and female body types, with a crossover between the two because we understand the unique sizes of humans. We also offer twenty different colors which vary in styles as well. All of our products are made with our innovative, recycled and eco-friendly polyethrinite material. Polyethrinite is breathable and comfortable. We often read customer reviews that are "thank you" notes for selling such a quality material. Polyethrinite is perfect for exercise due to its windy nature. Customers feel confident when training in polyethrinite because it does not become heavy when wet and it does not retain body heat. Research and Development While Peak Performance strives to remain innovative with its products, we continually strive to always keep pace with our customers. ' changing needs. Since many of our customers are busy parents training for physical challenges, they are sometimes forced to train in the rain, snow, or even at night. This is why we develop jerseys containing reflective materials so that athletes wearing our brands are visible to cars and are safer. When our customers' needs change, so do our products. We work to ensure the safety and satisfaction of our customers. For almost a year, we have been testing this concept and taking steps every day to ensure that our shirts are infused with reflective materials. We worked on this design with NCAA Division 1 cross country athletes and gathered their feedback to incorporate it into the designs. The product is still under development and unlike normal reflective wear, we are working to make it ten times more reflective than any material. in the current market. After market testing, we see that we have a chance to be at the top of the reflective equipment market in the next six months. We hope to release the final developed product within the next year, and when it hits the market, we expect our shirts to be the best-selling reflective gear. Pricing: Pricing Strategy Peak Performance is a value-based company that continually develops top-of-the-line, cutting-edge products to provide our customers with the greatest value. We set our prices so that we can run our business efficiently, make a profit, and be able to donate a sufficient amount to the national parks. We first look at competitor prices, particularly Tentree, knowing that our shirt prices compete with theirs, and then place our prices at slightly higher prices to give our products the perception of a higher price.quality associated with higher prices. Additional discounts, sales promotions and deductionsPrices are offered in conjunction with our regular prices, ranging from $15 to $50. Location: Partners, Supply Chain Members and DeliveryCurrently, we work with our corporate partner Rev, the manufacturers of our polyethrinite. Rev is giving us a great deal on their fabric because, compared to other retailers Rev sells to, Peak Performance leads in polyethrinite sales. This helped us develop a relationship of mutual trust with Rev and opened up contract opportunities with them. We plan to finalize a contract with them in January 2018. We are also working with our second partner company, Bill's Recycled Cardboard, the supplier of our shipping packaging. We established a contract with them in 2016 and use their recycled boxes to support our desire to be a more environmentally conscious company. When it comes to business-to-business transactions outside of our partners, we work exclusively with national parks, such as Yellowstone National Park. Park. We do not allow other stores to carry our products because we want to remain a unique, independent online retailer and be able to control how our brand is represented. One of the advantages of our purely business-to-consumer marketing activity is having direct access to our customers, who can rely entirely on us. If there is a problem, customers know exactly where to go and who to contact to resolve their issue. Since some of our main marketing points are free shipping and free returns, it would be difficult to provide and guarantee if other companies sold our products. Working with fewer partners has allowed us to better manage supply chain operations and maintain close relationships with our partners. Peak Performance's supply chain begins with Rev, our polyethrinite manufacturer. After making the fabric, they ship it to our company building. Bill's Recycled Cardboard sends our shipping packaging to our company building where Peak Performance assembles, organizes and packages the final products. Once the product is packaged, it is held until it is ready to ship or is immediately shipped to the customer. PromotionWe want people to know what sets our company and our products apart from our competitors. With our promotions, we seek to excite and educate customers about our company and our offerings. We seek to introduce our customers to our products and services and keep them engaged and enthusiastic. We pride ourselves on our biggest free shipping and returns promotion every day. Our primary channels of communication with customers are through our website, customer service phone line and social media. Our website is the source that contains the majority of our educational materials and allows customers to learn about our products and services. Any public information about our company and processes, our founders and managing directors, recent company events, our products and sizes, and any discounts or business promotions can be found in articles and written reports, photos and video clips. Our website also offers the ability to live chat 24/7 with a company representative or call a representative on our customer service line with any issues, questions, comments or concerns. Facebook, Twitter, Instagram and our company blog are the most popular. form of communication used, which we mainly use to enthuse and engage our customers. We excite our customers by publishing promotionssales or our new designs and styles by offering rewards for their engagement. We engage our customers in design competitions, referral programs, sweepstakes and giveaways, and by asking them to tell us what they think by responding to polls, surveys, posting comments, photos or stories to share with the Peak Performance community. With changes and updates every hour, we stay top of mind for customers as they come back to see what's new. We believe that word of mouth marketing is the most successful form of advertising, which is why we use social media heavily to reach our consumers. With “Action Posts” on our various social media platforms, we encourage our consumers to share, comment and post photos of themselves in our gear. We often offer random gifts to people who actively promote our business on social media. Our goal is that our consumers' other followers become familiar with our name on social media, and we then become at the forefront in each customer's internal information search. This focus eliminates the potential of our competitors because we are the first company people associate workout equipment with. Our high-quality clothing adds value to the customer shopping experience through Peak Performance. We are working on a marketing campaign that highlights the many attributes our products have to offer, while putting to rest any ideas our customers may have about performance, financial, social, physiological or psychological risks. This is another way our handwritten notes help us. These notes open up a model of open communication with our customers, even if it's not through handwritten notes, allowing them to feel comfortable expressing their concerns to us about their purchases. We hope this will eliminate any negative word of mouth that might arise if our customers feel their needs are not being adequately met. By being personal with our ratings, we show each customer that we care about them and want them to have a good experience. Evaluate and measure objectives Understanding whether we are achieving our objectives is important to us as a company. We work every day to achieve our goal and we track our progress. We track all of our online sales through an automated system. At the end of each year, we publish our annual sales and immediately work to increase the following year's sales by 10% over the next year. Based on the annual sales target, quarterly targets are set to track steady progress towards the annual target. We monitor the website itself very closely, as this is where our sales transactions take place. Every week we review clicks on our website to ensure we are hitting our goal of 50,000 clicks per week. Peak Performance also monitors the performance of social media and other advertisements by tracking the number of people reached through them to assess their effectiveness. Finally, our most important goal is to maintain an A+ rating from the Better Business Bureau to assure future customers that they can trust Peak Performance, which we can confirm with award letters. ConclusionPeak Performance has set goals for the next five years to become a leading market competitor. As shown by the analysis of our market segmentation, target markets and positioning.