Business Plan. Business plan ECO SURF. IP Poland Team DarkBlue. Tourism + Services dark blue. Dirting, Barbara.

Transcription

1 Business Plan IP Poland 2008 Team DarkBlue Tourism + Services dark blue Dirting, Barbara Silva, Ana Rita Skoczylas, Paulina Stenman, Meri Verkempynck, Carol Wueschner, Christoph 1

2 Table of content 1. Introduction 3 2. Executive summary 4 3. Current situation - vision, mission and values 5 - business organisation 7 - products and services 8 4. External environment - market analysis 11 - marketing mix 16 - competitor analysis 20 - success factors Strategy and plans - communication plan 22 - Business strategy Financial analysis 33 - break even analysis - sales projections - capital spending - operation costs - balance sheet - cash flow +funding requirements 7. Risks - SWOT Conclusion Logo s, webpage, flyers, billboards, merchandising and magazine Sources 45 2

3 1. Introduction We would like to introduce you to a brand new company, ECO SURF. The company is located in Sagres, in the Algarve. The 2 owners are aware that there are already a lot of surf schools but we are very different of all of them. They have a whole new vision on surfing and on the environment. The main purpose is to have a smooth running business that makes profit but they want to do this in an environmentally friendly way. They love our world, our nature, and they want to spread the message as good as possible. For this reason they created a whole new concept, surfing lessons combined with environmental workshops. The main focus group are kids and youngsters because they are the new generation, they need to live in tomorrow s world so they need to take care of it. Family s are also very important so ECO SURF had a couple of different packages to fulfil everybody s needs. Ecological problems are very hot topics at the moment, but it will stay in the news..it s not a hype or a temporary problem. So they are convinced that their business will be profitable and will have an enormous success. Besides their main activity they also run a surf-shop and they give private lessons to create more profit. Because raising the ecological awareness of kids is very important to them, they also offer a package to schools. 3

4 2. Executive summary ECO SURF school offers surfing lessons for everybody from children to senior people. The mission is to raise the ecological awareness of people. The slogan says it all: Eco way of living The company is located in an environmentally friendly building in a preserved area. ECO SURF is a very open-minded company with a clear vision. They want to make a change in this world, so they will search for the most motivated and passionate people to work with. ECO SURF is owned by 2 equal partners and the decision-making process happens by consensus. ECO SURF offers 3 different packages; a family package, a package only for kids and private lessons. The environmental workshops have 4 different themes; sea, beach, forest an culture so the most important subjects are discussed. Besides this ECO SURF also runs a surf shop where you can buy or rent surfing equipments. ECO SURF is a sustainable business because it s their way of living. Everything they use, from the building to the bus, is ecological. ECO SURF does something for the people, they create new opportunities for the locals and they raise the ecological awareness of people. They also do something for the planet because they want to preserve the area. But nevertheless ECO SURF is a commercial business so their goal is to make profit. The main goal is to attract as many potential clients as possible so ECO SURF uses a great variety of media. The advertising will be clear, simple and just tells the main information about the business. ECO SURF s prices are justified, they aren t cheap but if you compare them to other surf schools people get more for their money with ECO SURF. Market research learned us that people will be prepared to pay a little bit more. ECO SURF s strategy for the coming years is to expand, preferably to other preserved areas. 4

5 3. Current situation Vision, missions and values Vision The business has been given the name ECO SURF. They are located in the lovely Sagres in the Algarve. The main activity is a surf school for every age, but the thing that makes them different and better that any other school is their way of living. They care about the environment, so they life by that philosophy. ECO SURF offers surfing lessons combined with environmental workshops for kids. In every workshop they start with a theoretical part that is brought it in a nice and relaxing way. Then practical information is given to improve the environment and at last they ll do an excursion or a fun assignment. ECO SURF is located in a nice and environment friendly building near the beach where it has a surf shop that is at the same time an information point where people can come, and find out everything they want to know about the environment. To apply the ECO LIFE-STYLE on everything the most energy comes from solar panels. Mission The owners mission is to improve the ecological awareness of kids. They want to teach them something about their own environment and what they can do to preserve it. Some examples of environmental activities: - Bird watching walk. An expert gives some explanation about the different kind of birds and then you can go for a exploration walk to spot all the species. - Dolphin trip. They ll take you on a boat trip to spot some dolphins and on the way there and back you can learn about the sea life and what they can do to improve it. - Values Profound values They have a unique idea, but at the same time it s a very responsible idea. They don t sell air, it s very important to them that they teach people something, especially in times like these. 5

6 Relationship values ECO SURF employees are kind of informal with their clients, especially with the kids because it s very important for them to have a good time. They are at school for 9 months a year so they don t have the need to be lectured in their holiday. With their adult clients they are also informal but in a mature way. The ECO SURF staff is dressed in the same uniform, they will provide a nice t-shirt and shorts for them, preferably in organic cotton. Also the 2 CEO s are dressed in the same way, because equality is very important in ECO SURF. We all need to work together to make the world a better place, so they start with this principle in their company. Inspirational values They want to change the way people think. There are a lot of people who think that change can only happen if the government regulates it, but big changes start with little things. It s important that they realize that change starts with their self? Personality& Soul of ECO SURF ECO SURF is a very open-minded company with a clear vision. They want to make a change in this world, so they will search for the most motivated and passionate people to work with. 6

7 Business organization ECO SURF is owned by 2 equal partners and the decision-making process happens by consensus. The structure is a simple line-structure but the opinion of their employees is taken into consideration. Board of directors CEO 1 CEO 2 -Human Resources - Advertising / Marketing -Financials -Logistics - Daily activities - Daily activities Monitor 1 1r 1 Monitor 2 1r 1 Monitor 33 1r 1 Monitor Scientist 2 Scientist 1 They will hire 4 surfing monitors to give the surf lessons. Of course it will depend on their number of bookings if they have to work part time or full time. For the environmental workshops they need to hire 2 scientist, because they want to give correct and interesting information. The scientist have to work part-time because they are only needed for ½ day. The working time of the monitors depends on the number of bookings they have. 7

8 Products and services ECO SURF s main activity will be a surf school in combination with environmental workshops for kids. They will offer this package in the following months; June, July, August and September. The minimum number of lessons is 5 days. Each day will have another theme (sea, beach, culture, forest and surf). Week plan of the environmental workshops: Monday Sea-theme (The kids are taken on a boat trip to spot some dolphins and along the way they are taught something about the ocean, and the fauna and flora of the ocean.) Tuesday Beach-theme ( They will teach the kids something about the earth and the changes that are happening now, and what they can do to stop these changes. This will be done by little experimenting) Wednesday Culture-theme ( The kids will visit some some native people and get to know their culture) Thursday Forest-theme ( They teach the kids some more about the different species in the forest and something more about the woods. ECO SURF will have a platform provided in the forest where the scientists can go with them. Afterwards they will be taken on a bird watching walk. ) Friday a whole day of surfing ECO SURF offers this package for kids (surf lessons + environmental workshops) at 399 / week. Included in the price are: transportation, lunch and use of all the necessary equipment. Practical information for the 1 week package for kids. The kids are divided into 2 age groups. The children and teenagers are divided into two different groups. The kid s package is for kids from 8 to 12 years and the teen package is from 13 to 17 years. So the different groups will experience the workshops apart from each other. Program They will have 3 days of surfing, and respectively half a day for the themes. Sea ½ day Beach ½ day Culture ½ day 8

9 Forest ½ day Surfing lessons 3 days. To fulfil family needs ECO SURF offers a special family package. Each 2 nd and 3th weekend of each month ECO SURF offers an ecological family weekend. The price for 2 parents and 1 child is 599, and there is a fee of 100 for an extra child. Practical information for the ECO SURF family weekend Program Saturday morning surfing lessons Saturday afternoon an environmental workshop Saturday evening Portuguese cultural dinner Sunday (morning+afternoon) surfing lessons Next to the ECO SURF lessons for kids they offer all year long private surf lessons for every age group, and they have a surf shop where you can buy or rent surf equipment. The prices for the surf lessons are as following: 1 Person: 105, - 2 Person: 150, - 3 Person: 205, - 4 Person: 250, - These lessons can be private if there is a high demand. The maximum for a surf group is 2 people. The courses include all equipment (surfboard and wetsuits) and consist of 3 hours per day. Furthermore ECO SURF offers its customers free drinks during the surf lessons. 9

10 In the low season ECO SURF offers a package to schools. The schools can come with their kids to ECO SURF for 1 day and they will be given a ½ day of surfing lessons and the rest of the day they ll attend an environmental workshop. (The schools can choose which workshop will be given. Sea, Beach, Forest or Culture.) The price for 1 child will be 15/ day. 10

11 4. External environment Market analysis General Facts: Inhabitants: 10, 8 million Total area: 92,345 km² Capital: Lisbon GDP total: $ GDP per capita: $ 23,464 Averaged income: , - Official Language: Portuguese Currency: Euro Climate: Mediterranean The Tourism is a growing industry in the Portuguese economy. Every year there are coming as many tourists to Portugal than already living there. The GDP was growing with circa 5% during the last years. So this means the tourist factor is increasing a lot and very important for the Portuguese economy. This graphic shows the current tourism in Portugal. Most tourist are coming from other European countries (59,9 %) and from inside Portugal (31,3 %). The rest is coming from outside of Europe and the USA (9%). Tourism in Portugal 31,3% Portugal USA 59,9% 1,8% 7,2% others EU without Portugal 11

12 In November 2007 the Algarve was one of the most favourite destinations for foreign tourist in Portugal. In global terms the Algarve assumed a weight of 24, 7% of total nights of Portugal. General Facts about the Algarve: Region: Algarve Inhabitants: habitants Capital District: Faro Total area: 4960 km² Weather: Between 15 and 31 C. The Algarve is hilly, but traversed with rich valleys. Its highest point is the mountain range of Monchique, with a maximum altitude of 906 m (Peak of the Fóia). It is composed of 5,412 square kilometres with approximately 410,000 permanent inhabitants (density of 76 inhabitants per square kilometre). This figure increases to over a million people at the height of summer due to an influx of tourists. The region is also the home of the Ria Formosa lagoon, a nature reserve of over 170 square kilometres and a stopping place for hundreds of different birds. The Algarve is a popular destination for tourism, primarily because of its beaches, the Mediterranean climate, the safety, and the relatively low costs. The length of the south-facing coastline is approximately 155 kilometres. Beyond the westernmost point of Cape St. Vincent 12

13 it stretches a further 50 kilometres to the north. The coastline is notable for picturesque limestone caves and grottoes, particularly around Lagos, which are accessible by powerboat. Praia da Marinha, Lagoa was classified as one of the 100 most beautiful and well preserved beaches of the world. During the month of November, tourists from the United Kingdom were responsible for the largest number of tourist areas of Albufeira, Portimao, Lagos /Sagres and Loule. In the area of Faro/Tavira has seen predominance of Dutch tourists in the area of Laguna/Silves of German tourists. In November 2007, the total income in the hotel units were around 20,2 million euros in Algarve and million euros on the national level which represents increases of 10,9% for counterparts and 11,3 % for respectively. 13

14 In terms of values accumulated, from January to November, the hotel units of the Algarve registered euro s of the total income, which creates a variation of positive counterpart of 8, 8%. Total Profits in the Hotel Establishments in Algarve The market of Portugal should be segmented into two different criteria s: Geographic criteria: The Algarve is the most visited place in Portugal by tourist. Per year there are circa tourists. You can see this in the graphic beneath. So ECO SURF chose the Algarve for its place of business so they can use the best visited place by tourist in Portugal. 14

15 Division of tourists North Lisboa Algave Center Acores Madeira Alentejo Demographic criteria: The main target group for ECO SURF are children and teenagers, because the package of the workshops is only for this target group. Furthermore they have an averaged target group of young adults for the surfing lessons and the surf shop.. To introduce the ECO EXPERIENCE successfully it is necessary to create a good image for quality and innovation. It is very important that the customers tell their friends about ECO SURF and the great experience they had with them. The name ECO SURF should stand out against its competitors with creativity, innovation and very good quality. Sagres Sagres is a beautiful village that breathes surf spirit all around. This village is surrounded by the sea, the sun, the green space and all the culture that Portugal used to offer. The most famous beach is called Tonel, It has the best waves to surf and for further sea activities. Sagres also offers great green spaces, such as the Costa Vicentina This is a natural resort that has a lot of special specie characteristics in the area. The different point is its culture and its way of living. This is a very charming village because it is composed by a lot of small houses and small bars All of the tourists have a lot of surf sensation so no one is after trouble. Sagres is a peaceful and fun location for visits or even to live. So this paradise is wonderful to support ECO SURF, because of its concept and the philosophy of the brand. 15

16 Marketing mix Product: The Brand Name The company is named ECO SURF. This stands for innovation, creativity, and a new idea of creating a business. Included in the name of the company is everything it stands for. ECO symbolizes the different work shops where the participants can learn a lot about their environment and how to keep it clean. This is a very new business structure and means innovation in the branch of tourisms and service. The second part of the name SURF is important because the customers also learn how to surf. Therefore the clients get the chance to combine sports and learning important things about the right behaviour in the nature. This business culture is very unique and special. ECO EXPIRIENCE is new creation where children and teenagers can learn how to surf in a totally different way because they get taught in two very different subjects. On the one hand the participants learn how to surf by well trained and experienced coaches and on the other hand they learn the right behaviour how to deal with the environment by well prepared teachers. The lessons about the environment are divided in four different categories. The four categories are the sea, the beach, the Portuguese culture and the forest. Sea- theme: Here the children make a boat trip where they can observe dolphins or other interesting objects the ocean bears. ECO SURF creates a platform in the sea where the kids get taught about the peculiarities of the sea, for example about the tights and how this influences the behaviour of sea animals. A further point is that the participants will be instructed how they can help to safe sea animals which are threatened with extinction and also how to keep the sea clean. For example if the situations allows they can even help stranded cancers to get back into the ocean. Furthermore they can themselves get rubbish out of the sea and will learn about the how to treat the environment and especially the ocean. While learning about the sea they can observe the behaviour of the ocean and what secrets it bears for them Beach-theme: During the beach day the participants will go to another platform ECO SURF created at the beach. Trained teacher will tell them everything about the particularities of the beach. So for example the children get taught about the animals that are living at the beach. Furthermore the kids also learn about the earth and the changes which are taking place now and how they can contribute that the climate change does not go further in this speed. Besides they get told how important it is to keep the beaches clean and what consequences dirt on the 16

17 beaches can have. Additionally to this, they can pick up some dirt from the beach or the coast which makes them more responsible for the environmental problems around them. Culture-theme: For the cultural aspect ECO SURF covers different facts. The kids will visit native people from Sagres and learn about their lives and the different ways how to deal with culture. For example they will visit native people, have dinner with them and talk to them about their way of live. They will see a different way of living which makes them a bit more open minded. Furthermore they will be taught with games how to react in Portugal and how to treat different cultures. Forest-theme: Dealing with this theme there is a platform in the forest created. The children will experience the nature in a totally different way. In this workshop a trained teacher will show them different species, different types of wood and how to keep a forest alive. Furthermore the customers get a better knowledge about the importance of forests and trees in the live circle of the humans. They will have a small walk through the forest with a quiz. In the end, they can carve small wooden figures if they want. This whole package consists of 5 different workshops which go on for 5 days. The four themes and the surfing lesions are in it. The children and teenager are divided into two different groups. The kid s package is for kids from 8 to 12 years and the teen package is from 13 to 17 years. So the different groups will experience the workshops apart from each other. They will have 3 days of surfing, and respectivly half a day for the themes. The complete package includes the transport to the surf school, the surfing lessons, the workshops and all materials for it and food and drinks for the 5 days. The customer can book the package of the workshops from June to September. To fulfil family needs ECO SURF offers a special family package. Each 2 nd and 3th weekend of each month ECO SURF offers an ecological family weekend. (there is a maximum reservation of 3 family s per weekend) The price for 2 parents and 1 child is 599, and there is a fee of 100 for an extra child. On the Saturday morning of the family weekend we ll take the family s surfing, in the afternoon they will be given an environmental workshop and in the evening we will teach them something more about the Portuguese culture. The family s will have a meal with local Portuguese people. On Sundays the family s have a whole day of surfing lessons. 17

18 Besides this workshop for children and teenagers ECO SURF offers private surf classes for everybody and a surf shop. Here you can buy your surf equipment and also hire the required stuff. The surf school also open from June till September but the shop is open the whole year. Price: The price for the package of the different workshops and the surf lessons is 399,- The price is a bit higher than that of the other surf schools. The reason for this is, because ECO SURF wants to attract averaged and a bit richer customers and their children. Furthermore it is a very new business culture which has to be more expensive. But still the price will be not too high that a lot of people can afford to come to ECO SURF. The price - quality relationship is very importance and ECO SURF offers very good quality and is able to demand for a higher price. Private classes: The prices for the surf lessons are as following: 1 Person: 105, - 2 Person: 150, - 3 Person: 205, - 4 Person: 250, - These lessons can be private if there is a high demand. The maximum for a surf group is 2 people. The courses include all equipment (surfboard and wetsuits) and consist of 3 hours per day. Furthermore ECO SURF offers its customers free drinks during the surf lessons. Rentals: The clients also have the possibility to rent the equipment they need for surfing. It is not necessary to visit a surfing lesson to get the chance to rent the equipment. Surf board 1 day 25 Euro 3 days 60 Euro 5 days 80 Euro 7 days 100 Euro every other day 15 Euro Wet suit 1 day 7,50 Euro 3 days 20 Euro 5 days 30 Euro 7 days 40 Euro every other day 5 Euro 18

19 Body board 1 day 20 Euro 3 days 30 Euro 5 days 50 Euro every other day 10 Euro The prices for the surf lessons and the rental are nearly the same as the ones from the competitors. ECO SURF decided not to create very high prices for this because if they do so, the customers will change to cheaper competitors. Place: The different workshops take place on the different platforms which are created by ECO SURF or in the school. The customers have the possibility to order the ECO EXPERIENCE or the private lessons via internet or in the surf shop. In the shop they can rent a surf board, a wet suit or a body board without any surf lessons or eco experience. The customers also have the chance to buy several surfing stuff for a good price in the shop. A competent advice is included in the hiring or buying process. Furthermore the customers can visit the homepage of ECO SURF and are also able to buy everything what is offered in the shop. They can order it and get the stuff sent to their home address. It is very important that the homepage is very clear to make it easy for foreign customers to order the required stuff easy online. Promotion: ECO SURF will make use of outside promotion media. This includes posters in public places like billboards or walls. These will be mostly close to school or in shopping centres. Furthermore they customer can see advertisement in newspapers and teen- magazines or other magazines or the internet. This should be enough to cover the biggest part of the target group TV spots are not necessary because they are very expensive and would not get the right target group. ECO SURF will invest a lot of time and money in the promotion to be as known and successful as possible. 19

20 Competitor Analysis In the Algarve surfing is very popular, so there are a lot of surfing schools. ECO SURF has approximately 11 competitors in the area that offer surfing lessons. They have surf lessons for local kids and adults, but ECO SURF focuses more on the people who stay in the many resorts in the Algarve. Some of their competitors also have a surf-shop where they rent or sell surf equipment but ECO SURF offers something more than just that. People can come to ECO-SURF to get some information about the environment, and they are located in an environmental friendly building. Their competitors offer surfing lessons, but we offer a way of living. They don t only teach people how to surf but they teach them how to be responsible with the world. ECO SURF offers something more than the others so this is definitely a competitive advantage. The prices are not that high in comparation with other surf schools. They ask +/- 270 for 5 days of surfing lessons, but they only get surfing lessons for this price. In the packages from ECO SURF they get also transportation, lunch, environmental workshops, trips, 20

21 Success factors ECO SURF School has a lot of success factors. The main point is to be aware of the environmental issues. The areas where the lessons take place (the beach, the sea, the forest and the school) are very safe so the parents do not have to worry about their children. They can rest while their kids learn responsibility about the environment and sustainable development. Of course this happens in a funny and very interesting way. Furthermore the company offers surf classes for everybody from children to senior people. Certainly all groups are getting the same treatment in relation with age, health and other. The goal of the surf shop is to get profits with renting and purchasing of surf materials, from which ECO SURF can finance the costs and survive all year. The last success factor is that the company has a bio diesel bus to transport the customers. With using bio diesel ECO SURF protects the nature because it will not pollute the environment as much as the normal diesel. 21

22 5. Strategy and plans Communication plan Communication target group The main target group for ECO SURF are parents and their children. Parents will be influenced through the advertisement of the company on walls or in magazines and that will awake their interests. ECO SURF offers the transportation from the school to the hotels of their kids so they do not have to do more than call ECO SURF and book the package. The company bus will pick the kids up and take them to the school. The parents are free to do whatever they like while their kids are at the workshop. The professors are also included in the target group because they will tell their students about the ECO EXPERIENCE and attract them to visit the company. Furthermore they will book the special day programmes for students and visit ECO SURF with their classes. Besides tourists who come on vacation to Sagres or in the neighbourhood are a potential target group. They will hear about the concept and book the ECO EXPERIENCE or simple surf classes. Of course ECO SURF also has to attract the surfers who are coming every year to Sagres, even though they already know how to surf. They can dispread the information and tell their friends about the business concept. Additionally ECO SURF is also for native people who are living in the area of Algarve. It is very important to attract as many native kids as possible. Everyone who has any interest in surfing can come to the company and learn how to surf and about the unique sustainable thinking. Communication Goals The major goal is to get to know this new business concept which will motivate surf practice and increase the responsible awareness about the environment. Communication needs to deal with three aspects. First of all ECO SURF wants to spread the information about the new concept to the different target groups to attract a lot of new clients with using different variations of media like magazines, internet, billboards, and the radio. The image of ECO SURF is that the company is very ecological, sustainable, and nature protective. 22

23 Position For people who are interested in surfing and learning about ecological activities, ECO SURF offers surf lessons and teaches the way of living in a different and sustainability way. This all will separate the company from other competitors. The main thing is that ECO SURF offers new experiences and how to treat the nature right. This is very important for the creation of a sustainable business. Slogan ECO WAY OF SURF ECO Way of Surf is chosen because it fits perfectly for the business culture of the company. In the concept the surfing is combined with the learning about the environment and how to protect it. ECO stays for the ecological way of living and the surfing. So it reflects the idea which is behind the business culture, because ECO SURF creates a very new idea, so it is its interpretation of the way of surfing. Communication Mix Advertisement In the first year the advertising is a bit intensive. This is very important to dispread the information about ECO SURF to everybody and attracts a lot of people. By using many different kinds of media the information about ECO EXPERIENCE is dispreading around and therefore the advertisement is effective. The promotion in specialized magazines represents the idea of being very unique and innovative. Advertisements in specialized magazines will represent the idea of the school to the surfers and other athletics. The main goal is to attract as many potential clients as possible. The advertising will be clear, simple and just tells the main information about the business. ECO SURF will create different kinds of advertisements to every segment which includes children, youngsters, adults and senior people. With using radio spots ECO SURF will also obtain new clients. Furthermore it is not very expensive and therefore a great opportunity to reach different groups of potential clients. The radio channels that we use will be Antenna 3, RFM, Mega FM and other regional Radios. 23

24 Public relations (PR) The idea of the PR is the managing of outside communication of an organization to create and maintain a positive image. Arranging events will give more visibility to the company. The events will include the contests of professional surfers. The first event will be at the opening day on the 5th of June and another one will take place on the 7th of September. Everyone can buy tickets for the events. ECO SURF earns profit from the ticket sales, sponsorships (BES, Optimus) and of course from the clients who will buy the surf packages. ECO SURF will promote its events by sending information via to the nearest schools or customers. Furthermore they will give flyers away and make big promotions in magazines and the radio. This way the interest of children and other target groups will arouse which makes them want to go to the event. The most effective way to obtain new clients is mouth to mouth promotion or in other words through satisfied customers. This is free promotion for the company and works better than any other way of promotion. Furthermore it does not cost anything which is a positive point for a young company like ECO SURF. The main promotion way is to hand out flyers on the beach, in the surf shop and to the nearest schools. ECO SURF will hire two students who will allocate the flyers on two days every week to schools and households. The merchandising is about giving t-shirts to customers and also to all guests at the events. This is a very good way to spread further knowledge about ECO SURF and to attract more and more potential new customers. Promotion Promotion means that ECO SURF will give 5 percent of discount for the first 20 clients for the private classes. 24

25 New Media Internet is a media that almost everyone uses nowadays especially. By putting some banners to several webpage s we will spread the information and knowledge about ECO SURF. By clicking the ad the user will come directly to our home page with having the opportunity to read more about us. The banner advertising is not so expensive comparing to the benefit that will get from it. The layout of the ECO SURF s web page is similar to the concept and design of the brand. The image of the layout seems exotic but at the same time there is an ecological view. In the back of the page it is possible to see the ocean and in the middle there is the logo from ECO SURF, which is a surfboard. The flowers give a feeling of the nature and freedom. The colours are the same as in the logo, blue, turquoise, white, yellow, and green. The layout of the web page is very simple so that everybody can use it very easy. Even children won t have problems to make use of it. Brand ECO SURF SCHOOL The brand is a way to create the value and to identify the product. Furthermore this separates ECO SURF from the competitors. We chose this name for the brand because it is an easy name for every nationalities, the Word ECO means the same thing in almost every language. ECO SURF is a company with an ecological way of thinking and surfing. This enterprise represents our concept very clearly. 25

26 Logo The Logo represents the business in a very simple way. The recycling symbol, wich is green, and the flowers describe the environmental care. The surf board describes our main business, surfing. The colors are very neutral, like green, blue white, and turquoise. All colours fit together very well. The green colour reflects the nature, the white colour represents pureness and turquoise blue the sea, and finally the yellow colour reflects the sun. Together they create the concept for ECO SURF. Strategy Development Timing Open: 5 June 2009 Start: 6 April 09 Finish: 7 September 09 Time Mix Localization 6 th April to 5 th May (TEASER) 1. Outdoor Advertising: Billboards and posters 2. PR (mailings to the hotels and some schools) 3. Promotion - Distribution by Promoters of 1. - Near to schools and some resorts Algarve Resorts (Lagos, 26

27 some informative flyers and merchandising in hotels and Schools Portimão, Vilamoura, Sagres) 3. - Algarve Resorts* - Schools (Algarve, Lisbon) 6th May to 4th June 1. Malling s 2. Promoters (school and Hotels) 3. Advertising : Radio Specialize Magazines 4. New Media 1 and 2 Resorts* Lisbon Schools. 3. Radio: Antenna 3 RFM Mega FM Regional Radios Specialize Magazines: Surf Magazines Resorts Magazines 4. - Sapo ADSL - Surf Web Sites 5 th June PR: 1. Surf for a cause : Charity Event in morning. Treasure Hunt for careless children. Sponsor: Optimus and BES Afternoon. 2. Surf Experience Body Board, Surf, Windsurf - Natural Reserve - Tonel Beach 27

28 challenges. With professional and amateur people. Sponsor: Optimus and Reef Stands: Subscriptions to the school and shop promotion. Algarve Resorts* Advertising: Billboards and JCdecaux: 6 th June to 6th September 1. Mailings (For Resorts) Advertising: - JCdecaux and Billboards (promotion of the new event) - Special Magazines - Radio Near to the beach and at principal squares of the cities, such as Lagos, Sagres, Portimão and Vilamoura Special Magazines: Surf Magazines and Resorts Magazines. Radio: Antenna 3 RFM Mega FM Regional Radios 28

29 7th September PR: Finish Event End of Summer Morning: Kids Activities (show the company concept) - Ludic Actores. Stands at the Reserve: Promoters that give information about the Eco surf School and in this day the company can give discounts for the first ones subscriptions (5%). Sponsor: BES and Optimus Afternoon: Surf Challenge Stands in Beach: Promoters that give information about the Eco surf School and in this day the company can give discounts for the first ones subscriptions (5%). Sponsor: Optimus and Reef. Night: Party on the beach for special resort clients. Sponsor: Optimus Morning: Natural Reserve. Afternoon and Night: Tonel Beach. 29

30 ECO SURF will open the surf shop on the 5 th of June but the advertising will start on the 6 th of May. The season is over on the 7 th of September. 30

31 Business Strategy We analysed the market very well and we ve come to the conclusion that there is a trend towards combining amusement and ecological conscience and awareness. We observed that this trend will evolve in the next years very rapidly, especially towards our younger consumers and so we ve developed a unique concept towards entertainment and ecological education to catch this wave of the trend. We try to be innovative and have a different offer to propose to the tourism and services market. Our business strategy is one of creating different packages of products within the same concept in order to make the spectrum of our target consumers bigger. And also at the same time to have a product with direct focus on the younger people. We ll have to promote towards family s in order to have their improval and interaction with our business. ECO SURF will enter the market with strong investment so people get to know them. In the beginning they will invest much in advertising and marketing, so that they can benefit from it later on. ECO SURF will start with their communication in many resorts in the Algarve area, because the biggest percentage of the target group is located there. Another big focus group will be the local government, because they can support them with promoting and developing our product. The government will support us because the town will benefit from their vision towards the environment. They will be seen as an ecological town who give a lot of opportunities to innovative and ecological businesses. ECO SURF will also offer a package to schools because then they don t need a licence to teach. This one day package is offered only for 5 months in the low season. ( October and November & March, April and May. ) In the short run they ll start with a lot of advertising and public relation so that people get to know ECO SURF. They will organise some events to receive some more publicity and to show the people how important it is to be responsible for the environment. Once ECO SURF is well known they should think about newer marketing and advertising strategies. In the first year they want to see and analyse how our product is accepted in the market, and if changes are needed they will look into it. 31

32 If the business is profitable for a year they will think about expanding their business. Then they will know how big the profit is for each month. By then the owners will know if they managed a turn-over. They will expand to other countries but with the same concept; surfing/environmental workshops. The cities of whom they are thinking, are Biaritz in France and Cadiz in Spain. The owners will make a good market analysis of which place is better for us at that particular moment in time. We are already convinced that ECO SURF will have a profitable business because we did a lot of research about the market and about the area. They combine sports, fun and education, so with this combination they will convince the parents that their children use their free time useful. 32

33 6. Financial views See computer file. 33

34 7. Risks In this chapter a SWOT-analysis of ECO SURF will be executed. Internal strengths and weaknesses will be analyzed. Furthermore, an external analysis of opportunities and threats will be carried out. I. Strengths: The company ECO SURF has got a lot of strengths. It has a very innovative and unique business culture. The company combines the fun and the learning effect into one business. This is a strength because it is also a new way of doing business. It creates new possibilities for children to find out more about the environment while being at the beach, in the forest or in the sea. They also learn about a different culture which is a great experience especially for kids. Furthermore it is very important to care about the nature nowadays. This is why this new business culture is so unique and important very child friendly and in a funny way. A further strength is that the management of ECO SURF is really passionate and the two members of the management board are well educated person. They have known each other for a very long time and even worked together for a couple of years. Even though they are young and fresh they focus on the best possible strategy for the new company. This is a very important requirement to start a new business. Another strength is that the future employees of the company will be well trained and educated. For ECO SURF it is very important that its employees will be experienced in surfing, the environment, child care, and to speak different languages. Furthermore they will be very creative and have a good knowledge about different cultures in Europe. This makes ECO SURF very attractive for its customers from abroad. Additionally the products of the company will be very good and qualitative. Of course ECO SURF does not produce its products themselves, but they want to reach a status of a high qualitative surf shop. The company uses very famous brands and special equipment. This means a great possibility to sell a lot of products, because there exists a lot of averaged shops but not many shops that offer qualitative high equipment. Furthermore ECO SURF has an excellent location. It is located in the town centre of Sagres but also close to the beach. It has its own platforms at the beach, in the forest and on the sea which makes it very unique. To have such a great location is very important for a business because a nice location attracts a lot of customers. 34

35 Recently the company pays a lot of attention to the service they are going to offer its clients. This is also a strength for ECO SURF because a good service is very important for a stable company. It is very necessary to have satisfied customers, because a satisfied customer is a good customer. For this ECO SURF has its own website and a hotline where you can ask for further information about the company, what is offers, and its business culture. II. Weaknesses: Of course to open a new company always bears a lot of risks and weaknesses, too. For ECO SURF there is a weakness because the management is very young and might not be as experienced as older people who worked their whole life in such a company. The board of management has to be aware that they need specialist to help them build up their business. And of course the business structure is very unique there is always a risk of failure. Furthermore the owners of the company do not have a lot of capital resources. They have to get a high credit from the bank. This means that the company has to run very well from the beginning, because it has the burden of debts in its neck. So the company needs a well and elaborated working structure how the business has to be run. Additionally the enterprise has to be aware, what kind of customers they want to attract. This means ECO SURF has to make sure that the company identity is clear. If this is missing, customers might not get a clear or good image of the company. They will also not know if the service is a high quality service or what the company focuses on. So ECO SURF has to make sure, everybody understands what its ideas are and how to focus on them. Besides the company needs a good flow of information inside the company and a clear organizational structure. ECO SURF needs a commercial approach and to pay attention to its customers needs and wants. So they have to focus on the innovation of the company and the customer demands. If this is unclear there will be no clients because they do not find themselves attracted to the company. III. Opportunities: The market for surfing is growing extremely. Especially children everywhere in Europe want to try out and learn how to surf. Besides more and more young people want to help to keep the environment save. This people fit exactly in this business culture, because with ECO SURF they can get both, learn how to surf and deal with environmental 35

36 problems. With this business concept new markets can be explored and a lot more customers will be addressed and attracted. Another opportunity is the good image of ECO SURF. The surf school and as well the surf shop are known for high quality, originality and special brands. This good reputation can attract new and old customers and can also depict a competitive advantage. Furthermore ECO SURF deals with environmental problems and tries to take care of them and to keep the environment cleaner and safer. This is even more important to stick to the good image of the company. Furthermore the dynamic concept of the company is an opportunity. New solutions have been found in order to help to keep the environment safe. In other words creativity and innovations are more and more demanded to develop a better working with the nature. This is very important when creating a new business with such a unique company culture. Another opportunity is the locally available skills of the culture of Portugal, because ECO SURF is working with local people who know a lot about the culture in the country. This native people who lived their whole life with beliefs and thoughts about the Portuguese culture are able to bring their beliefs to foreign children. IV. Threats: One big threat is the competition Competitors like other surf schools and shops in the neighbourhood of ECO SURF might recognize that clients consider a business structure as the one from this company to be very exclusive and start to imitate the concept of ECO SURF. If they offer their service for a cheaper price and as a simpler version they might have a better connection to the demands of the customers. Another threat might be the shorter time-to-time market. Right now, customers care about the nature and want to change something. But also customer wishes change rapidly and new communication media (like the internet) enables the client to find other companies with similar or other business cultures which they prefer more at a time. So changing from one school to the other will therefore not be difficult any longer if the service is not satisfying. Cultural differences might influence the business as well. Especially children might not get along with a different way of living because they just know very less about differences of cultures, languages and food. They might have to deal with a little culture 36

37 shock even though they are not staying very long. ECO SURF therefore has to make sure, that the children will be a bit prepared if visiting native people for example. Additionally there might be a threat concerning the area around the platforms of the company. Right now, the area is protected by the government of Portugal. This means the nature is protected. Right now the area is still open for visitors but regulations can change. In 5 years the areas might be closed and even more protected so that are useless for ECO SURF. 37

38 8. Conclusion The Portuguese market was analyzed in order to open ECO SURF in Sagres. ECO SURF mainly offers its product ECO EXPERIENCE, which is a package of 4 different workshops and a surfing course. The company created a very unique and innovative business culture to open a new market for the workshop. The market analyse showed that opening a surf school in Sagres will be very profitable because the market is very open minded for environmental and sustainable products. Besides the Algarve is the most famous tourist area in Portugal so that ECO SURF will not have a lot of difficulties to get the customer to visit Sagres. ECO SURF wants to target children, teenagers and families with the ECO EXPERIENCE and people form all ages for the surf lessons. The main goals of the company are to create a sustainable and innovative firm which attracts a lot of customers and to protect the environment. For ECO SURF it is very important to stick to the image they want to create. So if anybody hears the name ECO SURF he should think about innovation, sustainability, high quality and a lot of fun. To reach this the company uses a very clear communication strategy. The most important part for ECO SURF is using the mouth to mouth strategy where the customers tell others about their experience they made with the company. This is the best promotion, because a satisfied customer is a good customer. Besides teacher will talk about ECO SURF in their classes to everybody will know about the business culture very soon. To start this new business as well as possible, four characteristics are very important, product, price, promotion and place. ECO SURF offers 2 different packages of ECO EXPERIENCE, one for children and one for the whole family. The packages ECO SURF created fit very well to the offered price. In other word the price-performance ratio is very stable. This is very important to make a business work. Furthermore the quality of the surf stuff has a very high quality therefore the price will be a bit higher compared to the other brands. The Promotion ECO SURF uses is very easy and understandable. The company uses billboards, posters, flyers, the internet and the radio to advertise its packages. To use a combination of all these different advertisements the promotion campaign will be very affective. On this way, ECO SURF is able to attract the right target. The location where the company has its place of business is protected by the government. Thus to help to safe this area the company created platforms which benefits the sustainability of ECO SURF. 38

39 Comparing this business structure with other companies it is very clear, that this structure is very unique and innovative. Of course there are a lot of surfing schools in Sagres but none of them deals with the protections of the environment. This is the factor which differentiates ECO SURF from other competitors. Furthermore concerning the business strategy ECO SURF will expand to other countries with protected areas within the next years. It is very important to stay innovative at all time and therefore ECO SURF always has to be up to date and needs to compare themselves with competitors. Besides dealing with the costs and profits of the company the total incomes will be ,-. The total costs of the first year will be ,- All in all the company is going to be very profitable and unique. Therefore the business culture can be seen as very special and famous. 39

40 9. Logo, webpage, flyers, billboards, merchandising and magazine Logo Webpage 40

41 Teaser Ecological platform 41

42 Teaser Billboard 42

43 Billboard Flyer 43

44 Magazine Merchandising 44

45 10. Sources 1. Stutely, Richard (1999), The definitive business plan, Great Britain, Prentice Hall, Financial Times Billboard company Red Price Table 45