Business Plan Essay, Research Paper
Business Plan
Target Things
Fiscal Year 2000
Proprietors
Submitted to:
2 August, 2000
CONTENTS
Executive Summary 3
Introduction 3
Situation Analysis 6
Competitive Analysis 7
Marketing Planning 8
Marketing Objectives 8
Target Markets 8
Marketing Mix 9
Implementation and Control 9
Summary 10
Appendix: 12
Sales Forecast 12
Budget 12
Profitability 12
Executive Summary
Target Things is a mobile training and safety instruction company; it will utilize the DART Targeting System, a computerized range system incorporating the latest in technology and graphics. It is a 3-D range, which can be used for archery or other weapons type training. This convenient, compact and very affordable Dart digital shooting system comes in three portable cases that can be easily transported in a mid-sized vehicle. One case holds the electronic equipment, another the firearms, and the third case holds the screen/frame. Target Things will specialize in the techniques needed to become proficient with all types of archery and firearm equipment. Also, we will become firearms and archery National certified safety instructors.
The electronic equipment package is enclosed in a quick set-up console that sits on the floor. The system comes with your choice of two Dart modified firearms also, over 1000 wildlife scenarios. As a secondary specialty, we will also offer instruction in gun safety and proficiency and National Bowhunter safety education course, which is required to hunt all big game animals in South Dakota and many other states with archery equipment.
Introduction
Target Things is intended to be a one-stop mobile target range designed to meet the archery and firearms needs of the local community and beyond. It will specialize in personal and family instructional training for the archery and firearm enthusiast while at the same time providing a specialized training operation for use by the South Dakota Department of Game, Fish and Parks Service, schools, colleges and universities, wildlife organizations, and other local and state organizations. It is very important for customers’ wellness and well being. We will be able to deliver this instruction through the use of the DART mobile training and practice system and the professional knowledge of our staff. There is also a child firearm weapons available for use and they would be available for hunters’ safety courses and firearms safety. This compact gun is just 30 inches in length and weighs a mere 2 pounds 4 ounces. The “Cricket” is ideal for young kids and can be easily handled by them.
Hunter Education on the Dart Target System gives hunter education instructors an exciting new tool for archery and firearms education. Dart’s Core Curriculum is available on all Dart Target Systems at Dart Dealers nationwide and on Dart Mobile Systems.
Dart’s Hunter Education & Bowhunter Education Curriculum:
· Supplements existing courseware
· Is simple to use
· Covers shot placement/selection, shoot/no shoot situations, and going afield exercises with visual realism and real situations
· Teaches safe and responsible hunting practices
· Simulates actual hunting situations in a risk-free environment so students acquire “experience” prior to going into the field
Dart is committed to having the best and most realistic product on the market today. Their company’s mission is to, identify and develop visionary products employing interactive multimedia technologies that contribute to the growth and prosperity of the shooting sports industry. These are some of the improvements made in the year 2000 for the Dart system:
· Sturdy camouflage walled tent for outdoor use; flat-top tent for indoor use
· 2 screens—one for firearms only, and one for archery & firearms
· Rugged consoles with sturdy wheels and exterior plug-in connections
· Consoles also serve as secure gun cabinets
· UPS power conditioner for protection
· Desiccant packets for moisture control
· Portable gun rack to hold 6 long guns
· New youth guns: Mossburg .410, Marlin .22 and the Cricket .22
· Improved Recurve bows and arrows
The Dart system is here to stay in the archery and firearms industry. It has won many awards since its inception in 1992. Like:
· The Dart Target System was voted the winner of the Bowhunting World Readers Choice Award for 2000 in the video target system category.
· Dart International; Inc. received the International Hunter Education Association’s (IHEA) Industry Award at the IHEA conference in June 1999.
· Featured in the June 1997 issue of Field and Stream, and winter 1997-98 issue of Sports Afield.
· Featured on ESPN’s Shooters Challenge every Saturday and Sunday for 28 weeks in 1996.
· Recognized on The Nashville Network (TNN) Celebrity Outdoors Special, “Buck Madness”, in November 1995.
· Featured on the ESPN program “Ultimate Outdoors” in the fall of 1995.
· Honored by Outdoor Life magazine as one of the fifteen “Outstanding People, Gear & Achievements” in 1994.
· Distinguished by Bowhunting World as one of the Top Twenty Hot New Products for 1993.
· Awarded the Special Achievement Award at the International CINDY Competition for innovative use of interactive technology.
The Dart Corporation has also been commended for their involvement in safety and conservation projects for the National Wild Turkey Federation and the Rocky Mountain Elk Foundation, as well as integrating the Dart Target System Hunter and Bowhunter Education Core Curriculum in eleven IHEA member states.
My sales and training staff will be composed of two individuals, Mr. and Mrs. , with a 20-year background in the archery, firearms, and trained in various safety and instructional areas. These will be used to improve individuals overall archery and firearm skills and knowledge and also giving them a better life experience.
Situation Analysis
Rapid City and the surrounding communities are composed of mostly middle class professionals. According to the Small Business Association there are 168,000 people in a 50-mile area surrounding Rapid City, with another 60,000 people within a 100-mile circle. According to the South Dakota Game, Fish, and Parks (SDGFP) license department, there has been an increase in both firearm and archery education participation since 1994. With an average increase of 8 percent each year. Archery participation has increased the most at 11 percent each year in education and license application response. The SDGFP has did several survey initiatives and found out more people are getting involved in the archery sport because, of longer seasons for various types of game hunting and a better success at obtaining a license. Plus, they have found that there are fewer accidents per archer compared to firearms handlers, so state agencies promote more archery involvement.
Also located in these areas are families and individuals that fall in to the upper and lower income groupings. Research has indicated an interest in archery and archery instruction from adults and children in all income categories. The area of Rapid City, Wyoming, Northern Colorado, Northern Nebraska, and Western North Dakota all have a long-standing reputation and history of interest in hunting and the outdoors that make this a viable training environment. Getting involved with local chapters of Ducks Unlimited, Rocky Mountain Elk Foundation, Pheasants Forever, and the National Wild Turkey Federation will give us more exposure and good coordination can raise awareness. According to local chapters in a 300-mile area, their memberships have increased at an average of 21 percent per year, with a drop off rate of 4 percent during the same time.
According to the South Dakota Labor Board the population distribution is:
· Population Median Age
Male 44,084 30.7 3 mile radius: 65-70,000
Ellsworth AFB: 14,000-16,000
Female 44,216 32.8 Households: 33,400
South Dakota Labor Force – 398,900
South Dakota Employment – 389,400
South Dakota Unemployment – 9,500
South Dakota Unemployment Rate – 2.4%
South Dakota Labor Supply – 54,122
· South Dakota’s Fastest Growing Industries 1998 – 2008
Industry Title 1998 2008 %Growth
Amusement & Recreation Services 5,070 6,740 32.9%
· South Dakota Population Estimates
1990 1999 1999 Population by Select Age Group
Area Census Census 0-14 15-24 25-44 45-64 65+
South Dakota 696,004 733,133 161,774 114,147 202,334 149,435 105,443
These are just some of the numbers that support this business plan.
Competitive Analysis
Our strategy is based on serving our niche markets well. What begins as a customized version of a standard product, tailored to the needs of a local clientele, can become a niche product that will fill similar needs in similar markets across the Midwest. None of the 3 local archery pro-shops offer a mobile video display and only one of them provides the opportunity of a stationary video range. This type of system does not allow or have not formed a worldwide tournament schedule, which the Dart system has. Which is accomplished by the worldwide web. These tournaments are shot during a whole week of shooting and instantly the results are sent to the main headquarters. This, in our opinion, creates an opening in this market area. Our ability to move to where the demand is and to provide the customer with a convenient range with little disruption in their daily schedule makes us very attractive. Due to these factors we expect very little competition from others for the next two years.
Market Planning
Marketing Objectives
My objectives for the year 2000 are sales profits of $60,000 as well as expanded operations to surrounding communities and states. In conjunction with training operations with state and federal agencies. Ad Designer software for promoting upcoming events, meetings, classes, etc. is included in the Dart system. We need to build the systems reputation so that we can replicate the product, the experience, and the environment across broader geographic lines. Concentration will be on maintaining quality and establishing a strong identity in each local market. The identity becomes the source of “critical mass” upon which expansion efforts are based. Not only does it add marketing muscle but it also becomes the framework for further expansion.
Target Markets
The target market is 18 to 40-year-old males and/or females interested in archery or having children interested in archery. Based on marketing surveys there is approximately 55-60 percent of families are interested in this type of training for themselves and/or their children.
Marketing Mix
To attract the potential “target market.” Target Things will be actively promoting their services at all local sports shows and sporting events. Surveys where done initially to find out what types of people were interested in this type of activity. The surveys were handed out to 287 people in the surrounding community. This is where we found out that males were more interested in this activity between the ages of 18 to 40. Females were more interested in this area of involvement if they had children close to the legal hunting age that is 8 for small game.
The overall strategy will be to get a core group of individuals who will draw others to the sport, and get them involved with archery and firearms not only for hunting, but also for a past time or enjoyment.
Target Things will also get involved with the state agencies in promoting a safe and viable environment for future archers and firearm handlers to learn and develop their skills.
Implementation and Control
The owner is responsible for executing this marketing plan. Starting in July 2000 begin acquisition of DART system. During the month of July the owner will be receiving training on the utilization of the DART system. Middle of August, launch promotional advertising campaign. September and October we will begin promotional pricing on DART system demonstration events. December will see the beginning of Target Things first tournaments. At this time we will also begin National Bowhunter Education course training in conjunction with the South Dakota Department of Game, Fish and Parks (SDGF&P). The training courses are sponsored by the SDGF&P will be non-profit. This will assist with advertising and promotion. Also getting involved with organizations such as Ducks Unlimited, Pheasants Forever, National Wild Turkey Federation, and the Rocky Mountain Elk Foundation will increase our exposure. Organizing national tournaments and moving around during the week of the tournament to allow maximum participation. Beginning in January we will focus on organizing training with local schools, colleges and universities. We will expand our operations to include institutions in the states of Nebraska, Wyoming and North Dakota and other state agencies.
Summary
Target Things will provide the state of South Dakota and many of the surrounding state’s Game and Fish Departments, universities, and schools with a one of a kind archery training, firearm training and competition system. This system will provide the best graphics and software available in today’s industry as well as the largest number of possible targets, over 1,000. The mobility characteristics of this system will also allow for greater flexibility in scheduling training events in other locations. The training that is sponsored by the SDGF&P will be provided at cost, which will aid in receiving the space on their web site to advertise. With the purchase of the DART system, we will receive one year of advertisements and our address will be listed on their web page for free.
The people of our community have shown interest in the Dart system and the main group of people to be targeted will range in age from 18 to 40. Males show more interest than do the women and the about 50% of the parents are interested in training their children. With the help of “Women in the Outdoors” and “Outdoors Women” becoming more popular in this area. We expect to see more women and family participation in outdoor activities and hopefully archery and firearm involvement.
Appendix
Sales Forecast : * Note: In Thousands
Budget
Initial investment for the purchase mobile DART Targeting System $51,000.00
Travel expenses –projection $10,000.00
Advertising Expenses
DART International (1 year free)
South Dakota Game Fish & Parks (free for non-profit classes)
Profitability
Potential is extremely high for this system at this time. Only predictions can be made based on the survey results. With full utilization on a daily basis, predictions can be a high as $180,000 income for a year. After expenses this could leave a net of approximately $80,000. At this time these are based on predictions based on consumer response.
Bibliography
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