Group Project marketing plan for fictional product. Created a new app that helped people find "adventures" in their area. Using SWOT analysis and conducting survey data, introduced promotion, distribution and product strategies to help launch the app.
W.H.Bender Quote 61 -Influential restaurant and food service industry network...
Final Marketing Plan
1. Appventure
BUS 346 - Principles of Marketing
Brenna Dickinson, Bradley Gritsch, Celeste Gritsch, Kelly Harding, Ria Vinod, Candice Walton
College of Business
California Polytechnic State University
San Luis Obispo
June 5, 2015
Table of Contents
3. 2
STRENGTHS
Convenience: Appventure provides the convenience of having consolidated information found
across several sites such as Yelp and TripAdvisor. Appventure aims to make it as convenient to
find fun activities outdoors as finding a show on Netflix, and according to Qualtrics survey data,
respondents rate Appventure’s convenience higher than both its leading competitors Yelp and
TripAdvisor (Exhibit D in Appendix, Qualtrics, 2015).
Sharing Capability: Approximately 1 in 4 millennial women and 1 in 5 millennial men use social
network sites to share things they like, and roughly the same number pay attention to ratings
and reviews posted by other consumers (Packaged Facts, 2012, p. 98-99). Further, this feature
is important to Qualtrics respondents, 45% of which post on social media often or all the time
(Exhibit C in Appendix, Qualtrics, 2015). Appventure’s “share” and “rate” features capitalize on
these preferences by helping users discover new places and experiences from people similar to
themselves, as well as share their own.
WEAKNESSES
Limited Use: Appventure is centered around the use of Facebook with its sign up process and
sharing function. Individuals without a smartphone or Facebook profile are unable to utilize the
app. In addition, Facebook usage among teens in 2014 (the bottom of the target age range and
those who will join within the next 5 years) dropped from 72% to 45% during the last year
(ValueWalk, 2014).
Limited Target Market: Appventure’s target age is college aged individuals, ages 18-24, which
limits possible users. Considering 18-24 year olds in the U.S. represent only 9% of the total
population, and the fastest growing age bracket of the U.S. population will soon be those aged
65 and older, Appventure will be missing out on a strong potential growth demographic
(Packaged Facts, 2013, p.29).
OPPORTUNITIES
Local Government and Tourism Boards: Cities and regions in the US have local tourism boards
such as visitcalifornia.com, whose purposes are to promote tourism in their area. Appventure
could partner with these services and promote the app to increase activity level at various
government tourism locations.
Advertising Partnerships: Local businesses could pay Appventure to advertise their services
through the app. Millennials are the generation most likely to purchase goods or services
advertised on their cell phone (Packaged Facts, 2012, p. 100).
THREATS
Similar Apps: Other apps like Yelp and Findery allow searching for user rated activities and/or
sharing experiences. Specifically, Yelp offers user-generated reviews and information on local
4. 3
businesses and services through its website and mobile app. Yelp has established a strong
place in the market, with sales in 2014 of $377.54 million and a market value of $3.08 billion
(Yelp, Inc., 2014).
Alternative Activities: There’s always the danger that individuals simply choose to engage in
another activity that does not involve the services Appventure provides. For example, people
aged 18-24 are almost three times more likely to have downloaded/streamed TV or movies six
plus times in the last 30 days than they are to have gone hiking once in the last 12 months (Fall
2013 product, 2013).
(Charts, listed in order of mention in the document)
Exhibit D
Exhibit C “How often do you post on social media?”
Segmentation, Targeting, and Positioning Part 1
5. 4
Appventure is a new to the world mobile application that’s designed for 18-24 year old,
social-media users, with an active lifestyle. As a location-based app, Appventure gives users
outdoor recreation suggestions based on location, difficulty, and reviews. Because Appventure
is a mobile application, it will be available through the Apple App Store and Google Play.
Therefore, the market will be limited to only those with smartphones and tablets.
Appventure’s primary target market is users between the ages of 18-24, of all genders.
The target user defines themselves as adventurous, outgoing, and active. According to the MRI
index, people ages 18-24 are 150% more likely to participate in rock climbing, 39% more likely
to participate in hiking, and 54% more likely to participate in mountain biking as compared to the
average American (MRI Reporter, 2013). Along with these attributes the target market will also
incorporate users who are active on social media. The “favorite” and “share” buttons of the app
make it imperative that Appventure targets the frequent outdoor activity participant and very
active social media user because their high activity level, and subsequent high level of
“sharing”, will increase the exposure of the app. Further, Appventure wants to target the
adventurous trend-setter because their innovative social status will attract new users to follow in
their footsteps. This connects with the target age group because millennials ages 18-25 are
more likely to try new things and consider themselves adventurous than any other age group
(Packaged Facts, 2012). Finally, seeing this shared information via Facebook will be of value to
users because an overwhelming majority of millennials trust information from their friends and
family most when researching places, products, or services (Marketing to Millennials, 2014).
The other target market is local outdoor recreation businesses such as local kayak or
bicycle rental places. Appventure would want these companies to pay for advertising space on
the app. For example, Kayak Shack in Morro Bay would pay to have their company’s
information pop up first when someone searches a kayaking activity in the local area. According
to MRI+, 18-24 year olds are 43% less likely than the average person to own a watercraft
device (kayak), yet they are 32% more likely than the average person to have canoed or
kayaked in the past 12 months (MRI Reporter, 2013). This gap shows the need for local rentals
for these activities. Further, these local businesses can efficiently reach this customer base, as
millennials are three times as likely as other generations to use social media as a pre-purchase
tool (Marketing to Millennials, 2014). By marketing the product to local outdoor recreation rental
companies, Appventure will be helping them, while they help the app.
Appventure aims to position itself, in comparison to its competitors, as the easiest to
use, all-in-one app that promotes local exploration and discovery. Appventure encourages
childlike spontaneity-- just getting out, getting dirty, and exploring this crazy and beautiful world.
Segmentation, Targeting, and Positioning Part 2
6. 5
Appventure is a mobile, location-based app that gives users outdoor recreation
suggestions based on location, difficulty, and reviews. Appventure’s target market is 18-24 year
old college students and young adults looking for a convenient app to find outdoor adventures in
their area. The app aims to make it extremely easy for users to navigate through the app and
find an adventure that will fit into their schedule.
Appventure’s primary competitors are Yelp and TripAdvisor-apps and websites that offer
location based activity information with reviews from users. Appventure will modify its
positioning strategy to differentiate itself from these companies to members of its target market
based on its convenience and user-friendliness. These two attributes were rated most important
by survey respondents, and Appventure was rated higher in both than their competitors
(Exhibits D and J in Appendix, Qualtrics, 2015).
Appventure will also target users who are active on social media as their high activity
level, and high level of “sharing” as mentioned before, will increase the exposure of the app.
This was confirmed by Qualtrics data that showed that social media users who post at least
once a day, to multiple times a day, rated Appventure higher in user-friendliness, and
convenience than its competitors. They also gave higher ratings overall compared to less
frequent social media posters (Exhibit F in Appendix, Qualtrics, 2015). Furthermore, research
confirmed that Appventure will target the active individual because those who participate in at
least three outdoor activities per week also rated Appventure higher than its competitors in the
two attributes mentioned, as well as giving higher ratings than respondents who do not
participate in outdoor activities very often (Exhibit G in Appendix, Qualtrics, 2015). Appventure
will target both males and females, however it will modify its marketing strategy and put more of
an emphasis on targeting females as they post more often on social media, and participate
more in outdoor activities (Exhibit I in Appendix, Qualtrics, 2015). Also, females seemed to like
the concept of Appventure more than males, rating both the user-friendliness and convenience
higher than males (Exhibit H in Appendix, Qualtrics, 2015).
Appventure’s will still market towards local outdoor recreation businesses who would pay
for advertising space on the app. By considering the need for rentals or purchases of outdoor
equipment by millennials mentioned in the previous document, and that high social media users
rate Appventure better than Yelp in critical aspects like convenience, local businesses have the
opportunity to specifically target the customers who are likely to need their products through
Appventure (MRI Reporter, 2013; Exhibit D in Appendix,Qualtrics, 2015). This confirms
Appventure’s belief that advertising through the app will help gain ad revenue, and help local
businesses gain customers.
Finally Appventure will still seek to differentiate itself by promoting exploration of lesser
known places. According to Qualtrics, 53% of survey respondents describe themselves as
“adventurous” or “very adventurous” showing that users are receptive to experiencing new
activities or locations (Exhibit E in Appendix, Qualtrics, 2015).
Exhibit D
8. 7
Exhibit H
Exhibit E “How adventurous would you describe yourself?”
Pricing Strategy and Financials
9. 8
In choosing the price for Appventure, both $.99 and $1.99 were considered as possible
prices. Appventure’s price elasticity of demand from charging $.99 to $1.99 was calculated as -
.63, labeling Appventure an inelastic good (Exhibit M in Appendix, Qualtrics, 2015). When
inelastic goods increase in price revenue positively increases. This indicates that Appventure
will make greater revenue charging $1.99 per download.
Continuing with data collected from Appventure’s survey, it was determined that at a
price of $1.99, 1.2% of consumers exposed to the app would purchase it (Exhibit O in Appendix,
Qualtrics, 2015). Initially, because of extensive location database cost and work, Appventure will
only be available to California residents. There are about 3,650,000 Californians aged 18-24, of
which approximately 72% consider themselves physically active (Suburban Stats, 2015; Stress
and Exercise, 2013). This will result in approximately 31,530 people buying Appventure for a
total sales revenue of about $62,750. Both the Apple App Store and Google Play will take out
30% of the sales revenue for allowing Appventure to sell on their platforms (TechRepublic,
2012). This results in a listing expense of $18,741. Additionally, to list on these platforms, it will
cost $99 per year for the Apple App Store and a one time fee of $25 for Google Play
(TechRepublic, 2012). On average apps make about $.09 in ad revenue per download (Quora,
2013). Based on Appventure’s download numbers it should make about $2,840 in ad revenue in
the first year.
Advertising expense for Appventure will be incurred through Facebook and Twitter.
Appventure will advertise on Facebook for $1.00 per day, hopefully reaching about 960,000
people in its target market (Facebook, 2015). Four percent of those people will actually click on
the ad, and Facebook charges an average of $0.25 per click, resulting in a total cost of $9,965
to advertise on Facebook (Marsland, 2010). Advertising through Twitter will cost between $.50
and $2.00 per engagement-clicking or favoriting a tweet (Allegar, 2013). Twitter is unique in that
it lets companies set a max budget, therefore Appventure will budget $1,000 for Twitter
advertisements. In addition, promotion through free downloads during the first year will further
Appventure’s exposure. When companies decide to advertise on Appventure they will receive
free download handouts to give to their customers. Appventure will disperse a total of 200 free
downloads to these local businesses. Appventure will also allocate 300 free downloads to
various local Starbucks.
Appventure will hire an app developer to develop the initial app. Typically, non
“recognized brand app” cost between $3,000 and $8,000 for development, prompting a
predicted expense of about $8,000 for the initial development, and $8,000 in year two for
potential fixes or upgrades (AppMuse, 2013).
Finally, Appventure expects a growth rate of 47.83% from year one to year two based on
an expansion from just California into Oregon and Washington (Age and Sex Composition,
2010).
(Calculations)
12. 11
Appventure promotes individuals to to be spontaneous and adventurous by conveniently
allowing users to find various locations to participate in a variety of activities. The convenient
and user-friendly design of Appventure makes it valuable to its target market, especially when
they’re on the move.
The logo for Appventure is simple but recognizable-one single green pine tree on a white
background. The simplicity of the logo mirrors the simple, user friendly design of Appventure.
Once inside the app, users will see a similar design with a white background and green pine
trees around the periphery of the page. The use of green for the logo is designed to highlight
that green is the color of nature, making it easy for users to recognize the app when scrolling
through their phone (Color Wheel Pro, 2015). Dark green will be used throughout the app
because it’s associated with growth and ambition, which will subconsciously mesh well with, and
attract, the adventurous individual Appventure is targeting (Color Wheel Pro, 2015). The name
“Appventure” will appear across the top in thin black letters with the slogan “is calling” right
below.
User-friendliness and convenience were rated as the two most important attributes by
survey respondents (Exhibit J in Appendix, Qualtrics, 2015). Therefore, Appventure was
designed to make it as easy as possible to use and eliminate any confusion or frustration while
using the app . The tools to help users find activities will be directly below the title, and the
sections for adventure type, time, and location will feature easy to use drop down menus.
Finally, after filling out these sections, users will be able to easily select from the various
locations that appear on a map of their desired area in the form of dropped pins. Every input
and output is extremely simple to use and view, which will enhance its value to users because
they expend little effort for a speedy process. Users should be aware that Appventure will not
come with any sort of warranty due to the terms in the end user licensing agreement of both the
Apple App Store and Google Play (Apple, 2015; Google, 2015).
Furthermore, 53% of survey respondents consider themselves “adventurous” or “very
adventurous”, this shows that many users are looking for new experiences and the ability to
leave their comfort zone (Exhibit E in Appendix, Qualtrics, 2015). Therefore, Appventure will
focus on displaying locations that are not overly very well known in order to appeal to the user’s
truly adventurous side.
Finally, in order to increase brand awareness Appventure will attempt to establish a co-
branding strategy with GoPro by partnering with local retailers that sell the device. GoPro’s
established position in the adventurous community will allow Appventure to piggyback off the
brand name. This will help promote the idea that Appventure can be used to capture your
adventures and share them with others.
Exhibit J
15. 14
Appventure will partner with the app developer Sourcebits to develop the mobile
application. Sourcebits is the ideal developer because of their ability to handle all aspects of
creating the app. From the initial design, to the backend integration: including data storage, app
security, and GPS, Sourcebits will help execute features crucial to Appventure’s success
(Sourcebits, 2015). Furthermore, Appventure will hire Sourcebits to develop the application on
both the iOS and Android operating systems. This will not be a problem because 85% of
Sourcebits’ development projects are on either the iOS iPad, iOS iPhone, or the Android
platform (Clutch, 2015). Finally, Appventure will hire Sourcebits because of their experience with
small businesses. Small business clients make up 40% of Sourcebits business, making them
qualified to manage the needs of Appventure (Clutch, 2015).
Appventure will be distributed via an indirect marketing channel. The app store from
which consumers can buy the app will be the only intermediary. From there, Appventure will be
digitally transported onto the tablet or smartphone. Appventure will be listed on both the Apple
App Store and Google Play because based on survey data, 99% of respondents said they
would expect to find the app on either of these platforms (Exhibit K in Appendix, Qualtrics,
2015). The system between Appventure and these app stores will be a contractual vertical
marketing system because Appventure has to electronically sign a contract to list on their
stores. This will leave Appventure relatively powerless to any sort of vertical channel conflict as
the app stores will have legitimate power (Grewal & Levy, 2015, p. 335).
Appventure’s risk of not reaching their target market would be extremely low because
the Apple App Store has a specific category for Travel apps, and when Appventure takes off in
popularity it could be featured free of charge on the primary featured page (Apple, 2015).
Further, Google Play has a specific Travel and Local category as well and a “Recommended for
You” section on the homepage which will help Appventure be seen by people whose purchasing
history indicates they fall in the desired target market (Google, 2015). While these app stores
may hold legitimate power over Appventure in the marketing system, they allow for specific
distribution targeting of Appventure’s target market and possess the reach to expose many
more consumers than Appventure would be able to reach on its own.
Exhibit K “Where are you most likely to download Appventure?”
Promotion Strategy
16. 15
Appventure’s promotion strategy will be based around its slogan, “Appventure is calling!”
Appventure will work to convey the spontaneity and convenience of the app through the
promotion strategy by attempting to be constantly visible to consumers via online and through
physical marketing strategies.
Appventure will use only a pull marketing strategy when marketing because the Apple
App Store and Google Play offer no way to incorporate a push strategy. They will directly
communicate with the target market consumer in the places they commonly visit, thus
stimulating demand.
Appventure’s promotion strategy will focus on online advertising via popular social media
sites, Facebook and Twitter, rather than mediums such as television, radio, or magazines. 64%
of survey respondents expected to hear about Appventure through social media, making social
media advertising the most efficient way to reach the target market (Exhibit L in Appendix,
Qualtrics, 2015). Furthermore, 23.3% of Facebook users and 31.1% of Twitter users in the U.S.
are between 18-24, allowing Appventure to be exposed to a large number of people through
these sites (iStrategyBLabs, 2014; Solis, 2012). Finally, according to survey data, 45% of
respondents post on social media often or all the time (i.e. daily or multiple times a day), and
this will enhance publicity by allowing users to spread Appventure’s message for free (Exhibit C
Appendix, Qualtrics, 2015). Appventure will further enhance publicity and exposure with a free
Facebook page, Twitter, and Instagram account that will incorporate user input by posting daily
activities from users who post #appventure with their adventure. This will increase usage,
sharing, and brand awareness.
A physical sales promotion strategy will be utilized by having free download cards at
select local outdoor recreation apparel and rental stores, and Starbucks locations. Starbucks
frequently has app promotion cards in their stores and young adults aged 18-24 total 40% of
Starbucks’ sales (O’Farrell, 2013). This will also help Appventure target female college aged
individuals who are frequent Starbucks visitors, and, according to survey, post more often on
social media and participate in more outdoor activities each week than males (Exhibit I in
Appendix, Qualtrics, 2015). Another physical strategy is to employ a guerilla marketing strategy
by placing stickers of the logo on trailhead signs to promote brand awareness in places
Appventure’s target market will visit, but not expect app promotions.
Appventure will also be promoted through popular adventure brands that target 18-24
year olds. Poler Outdoor Stuff prides itself on affordable outdoor products that relate to young
people while promoting them to embrace the outdoors everyday (Feingold, 2014). Collaborating
with Poler Outdoor Stuff through social media promotional posts will further convey
Appventure’s goal of providing adventures wherever, whenever. Poler Outdoor Stuff has a
strong social media presence with more than 300,000 followers on Instagram. Cross promoting
with Poler will increase their social media following, as well as Appventure brand awareness
and downloads (Starr, 2014).
Exhibit L “Which of the following ways would you expect to hear about Appventure?”
24. 23
“Which of the following ways would you expect to hear about Appventure?”
(Qualtrics, 2015)
Exhibit M
(Qualtrics, 2015)
Exhibit N
25. 24
(Qualtrics, 2015)
Exhibit O
(Qualtrics, 2015)
Exhibit P
This calculation shows a second comparison that if the app were free it would still generate less
revenue and net income than if the app were $1.99.
(Qualtrics, 2015)
Full Qualtrics Survey
31. 30
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