Title: LaceBone Lace Tensioning System
1This Opening Slide Contained a Video Clip of
People Snowboarding.
Courtesy of Warren Millers Ride and Cold Fusion
2Lace BoneLace Tensioning System
- Brian Albert
- Tom Chau
- Jamie Martin
- Cynthia A. Oster
3The Trail Map
- Introduction and Days Expectations
- Product Summary
- Market Background and Trends Analysis
- Sports and Skill Levels
- The Target Snowboarder Green Run Riders
- Positioning and Marketing Mix
- Advertisement
- Projected Results and Financials
4Lace Bone Objective
- Any snowboarders?
- Anyone want to go to the mountains right now!
- The Lace Bone lace tensioning tool is the best
way to tighten snowboard boots to enhance comfort
and performance. - Following is a detailed, thorough marketing plan
and the trail map to success - Seeking investment in early product lifecycle
opportunity!
5The History of the Lace Bone
- Peter Leahys Story
- Company partners have expertise in the following
areas - Operations and Injection Molding
- Marketing and Sales
- Partnerships with promotion, legal, and
accounting firms - Manufactured in Colorado
6Product
- Strong, molded plastic
- 4.25 long, 0.75 wide, 1.0 tall
- Ergonomically designed for easy grip
- Hook feature to provide additional leverage on
crosshairs
7Product Demonstration
- The Lace Bone is so simple and easy to use, even
Cindy is a Lace Bone expert.
8Market Background
- The Lace Bone has application in the following
sports - Snowboarding
- Ice Hockey
- Snowshoeing
- Ice skating
9Competition
Salomon Powerlace
Boa Lacing System
Bauer Hockey Lace Tightener
10Snowboarding Participation (000s)
DID YOU KNOW? In 1985, only 7 of U.S. resort
areas allowed snowboarding?
5.6 million Americans 7 years or older who
snowboarded at least one time in 2002
The drop from 1989-1990 and 1996-1997 was most
likely due to sample error not to a participation
drop.
Source 2003 NSGA Sports Participation Study
11Snowboarder Participation by Region
Source 2003 NSGA Sports Participation Study
12Demographics of Snowboarders (2002 Calendar Year)
Age
Gender
Household Income
Source 2003 NSGA Sports Participation Study
13Snowboarder Average of Days Participated
The average number of days that riders
participated jumped to 8.9 days, an increase of
24 from the previous year. It came close to
breaking the all time high record of 9.3 days.
Source 2003 NSGA Sports Participation Study
14Snowboarder Profile
Average age Male 22, Female
23 Gender 77 Male, 23 Female Percentage
with a College Degree 65.5 Ave. price pd for a
snowboard at specialty shop 262 Ave. price pd
for snowboard boots at specialty shop 134 Ave.
price pd for snowboard bindings at specialty
shop 123 Ave. of days snowboarding 8.9
(Males 9.2) (Female 7.6) Ave. price pd for
weekend lift ticket 52.36 Percentage that use
the Internet 58.9 Average of Internet hours
per week 17
Source 2003 NSGA Sports Participation Study and
2002-03 SIA Retail Audit
15Segmentation Scheme
16Green Run Riders
- Characteristics of beginning snowboarders
- Most difficulty tightening their boots
- Greatest interest in purchasing product
- Willing to pay up to 25
- Limited snowboard product preconceptions
17Positioning Statement
- For beginning snowboarders, using the Lace Bone
lace tensioning tool is the best way to tighten
their snowboard boots to enhance comfort and
performance. - Simple and easy to use
- Ergonomically designed
- Light and compact
- Hook feature for crosshair leverage
18Average Price Paid by Consumers at Chain Stores
- Consumers
- Can pay over 500 for snowboard, boots, and
bindings. - Can spend over 325 for apparel and accessories
- Pay from 15-60 for accessories
Comparatively, the Lace Bone is an inexpensive
accessory.
19Pricing
- Consumers said they would be willing to pay as
much as 25 for a Lace Bone - Other lace tensioning systems such as the Boa
and Powerlace systems can only be found on
higher-end boots that are priced in upwards of
300.00
The target MSRP is 9.99
20Other Pricing Activities
- Market penetration strategy of 9.99 MSRP to
generate volume and market share - Low involvement purchase decisions
- Consider quantity discounts for large orders
- Price could be further reduced by coupons or
other price promotions
21Distribution
- Direct from manufacturer to retailers
- Initial distribution focus on retail and rental
snowboard shops in Rocky Mountain Region - Target major retailers include Sports Authority
(Garts), Colorado Ski and Golf, Christies, REI - Initial selective channel distribution strategy
can be expanded nationally and internationally
(Canada) in Year 2 - Predominantly push strategy
22Distribution Details
- Target 250 accounts with five dozen packages per
account - Key selling months December and February
- Place Lace Bone counter display next to registers
to drive impulse buying and hang on pegboards
wherever boots or accessories are sold - Eventual partnership with boot manufacturers and
product bundling, e.g. Burton
23Retail Sales by Week for Winter Sports Products
End of October
End of Nov
End of Dec
End of Jan
End of Feb
End of March
2002-2003 SIA Retail Audit
24Promotion
- Sales promotions driven by personal selling
- Spiffs sales force incentives and free Lace
Bones for board shop professionals - Target snow sales events (Sniagrab, Snowsports
Expo, etc.) - Sampling at Demo Days at local resorts
- Coupons on flyers
- Public relations focused on a Colorado product
invented by Coloradan - www.LaceBone.com available for additional
information
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26Green Run Rider Print Advertising
- Print advertising in local and Front Range
newspapers Westword and Denver Post - Westword 1/6 page 12 week run 5,600
- Sunday Denver Post 8 col-in 12 week run 20,000
- Consider print in national snowboarding
publications in Year 2 - Media still to be negotiated
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28Break Even Analysis
- Data Intentionally Deleted
29Concept Purchase Intent
- Data Intentionally Deleted
30Pro Forma Income Statements
- Data Intentionally Deleted
31Financial Summary
- The bottom line
- Cost structure of the Lace Bone is resilient to
uncertainty - The Lace Bone is expected to break even in the
first year - The Lace Bone is expected to post a profit of
9,750 in the first year with net margin of 12.8 - A solid investment opportunity
- This represents a 19.5 return on a 50,000
investment
32Conclusions
- The Lace Bone lace tensioning tool is the best
way to tighten snowboard boots to enhance comfort
and performance. - The detailed, thorough marketing plan is the
trail map to success. - Your capital investment provides the lifeblood
for the future.