Page 85 - Marketing Management

62 PART 1 UNDERSTANDING MARKETING MANAGEMENT

skaters are using, Pegasus is the only brand that is truly designed 3.1 Mission
for and by skaters. The few competitors’ sails on the market are
not designed for skating, but for windsurfing or for skateboards. In Pegasus Sports International’s mission is to provide the customer
the case of foils, storage and carrying are not practical. There are with the finest skating accessories available. “We exist to attract
different indirect competitors who are manufacturers of the actual and maintain customers. With a strict adherence to this maxim,
skates. After many years in the market, these companies have yet success will be ensured. Our services and products will exceed
to become direct competitors by manufacturing accessories for the expectations of the customers.”
the skates that they make.
3.2 Marketing Objectives
2.4 Product Offering
■ Maintain positive, strong growth each quarter (notwithstand-
Pegasus Sports International now offers several products:
ing seasonal sales patterns).
■ The first product that has been developed is BladeBoots, ■ Achieve a steady increase in market penetration.
a cover for the wheels and frame of inline skates, which
allows skaters to enter places that normally would not ■ Decrease customer acquisition costs by 1.5%
allow them in with skates on. BladeBoots come with a per quarter.
small pouch and belt that converts to a well-designed
skate carrier.
3.3 Financial Objectives
■ The second product is SkateSails. These sails are specifically
designed for use while skating. Feedback that Pegasus ■ Increase the profit margin by 1% per quarter through effi-
has received from skaters indicates skatesailing could ciency and economy-of-scale gains.
become a very popular sport. Trademarking this product is ■ Maintain a significant research and development budget
currently in progress. (as a percentage relative to sales) to spur future product
■ The third product, SkateAid, will be in production by the end developments.
of the year. Other ideas for products are under development, ■ Achieve a double- to triple-digit growth rate for the first
but will not be disclosed until Pegasus can protect them three years.
through pending patent applications.
2.5 Keys to Success 3.4 Target Markets

The keys to success are designing and producing products that With a world skating market of over 31 million that is steadily
meet market demand. In addition, Pegasus must ensure total growing (statistics released by the Sporting Goods Manufacturers
customer satisfaction. If these keys to success are achieved, it will Association), the niche has been created. Pegasus’ aim is to
become a profitable, sustainable company. expand this market by promoting SkateSailing, a new sport that is
popular in both Santa Monica and Venice Beach in California. The
2.6 Critical Issues Sporting Goods Manufacturers Association survey indicates that
skating now has more participation than football, softball, skiing,
As a start-up business, Pegasus is still in the early stages. The and snowboarding combined. The breakdown of participation
critical issues are for Pegasus to: in skating is as follows: 1+% speed (growing), 8% hockey (declin-
ing), 7% extreme/aggressive (declining), 22% fitness (nearly
■ Establish itself as the premier skating accessory company.
7 million—the fastest growing), and 61% recreational (first-timers).
■ Pursue controlled growth that dictates that payroll expenses Pegasus’ products are targeting the fitness and recreational
will never exceed the revenue base. This will help protect groups, because they are the fastest growing. These groups are
against recessions.
gearing themselves toward health and fitness, and combined,
■ Constantly monitor customer satisfaction, ensuring that they can easily grow to 85% (or 26 million) of the market in the
the growth strategy will never compromise service and satis- next five years.
faction levels.

3.0 Marketing Strategy 3.5 Positioning

The key to the marketing strategy is focusing on the speed, health Pegasus will position itself as the premier aftermarket skating
and fitness, and recreational skaters. Pegasus can cover about accessory company. This positioning will be achieved by leverag-
80% of the skating market because it produces products geared ing Pegasus’ competitive edge: industry experience and passion.
toward each segment. Pegasus is able to address all of the differ- Pegasus is a skating company formed by skaters for skaters. Its
ent segments within the market because, although each segment management is able to use its vast experience and personal pas-
is distinct in terms of its users and equipment, its products are sion for the sport to develop innovative, useful accessories for a
useful to all of the different segments. broad range of skaters.