business plan dark blue

7/28/2019 Business Plan Dark Blue

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Business plan ECO SURF

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Business Plan

IP Poland 2008

Team DarkBlue

Tourism + Services dark blue

Dirting, Barbara

Silva, Ana Rita

Skoczylas, Paulina

Stenman, Meri

Verkempynck, Carol

Wueschner, Christoph


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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 21

5. Strategy and plans

- communication plan 22

- Business strategy 31

6. Financial analysis 33

- break even analysis

- sales projections

- capital spending

- operation costs

- balance sheet

- cash flow +funding requirements

7. Risks

- SWOT 34

8. Conclusion 38

9. Logos, webpage, flyers, billboards, merchandising and magazine 40

10. Sources 45


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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 tomorrows world so they need to take care of it.

Familys are also very important so ECO SURF had a couple of different packages to fulfil

everybodys needs.

Ecological problems are very hot topics at the moment, but it will stay in the news. .Its

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.


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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 its 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 SURFs prices are justified, they arent 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 SURFs strategy for the coming years is to expand, preferably to other preserved

areas.


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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

theyll 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 ofbirds and then you can go for a exploration walk to spot all the species.

- Dolphin trip. Theyll take you on a boat trip to spot some dolphins and on theway 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 its a very responsible idea. They dont sell

air, its very important to them that they teach people something, especially in times like

these.


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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

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 day. The

working time of the monitors depends on the number of bookings they have.

Monitor Monitor Monitor Scientist ScientistMonitor


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Products and services

ECO SURFs 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 kids 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 day

Beach day

Culture day


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Forest day

Surfing lessons 3 days.

To fulfil family needs ECO SURF offers a special family package. Each 2nd 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.


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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 day of surfing lessons and the rest

of the day theyll 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.


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4. External environment

Market analysis

General Facts:

Inhabitants: 10, 8 million

Total area: 92,345 km

Capital: Lisbon

GDP total: $ 232.000.000.000

GDP per capita: $ 23,464

Averaged income: 13.610, -

Official Language: PortugueseCurrency: 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%

1,8%

7,2%

59,9%

Portugal

USA

others

EU without

Portugal


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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: 411 513 habitants

Capital District: Faro

Total area: 4960 km

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 Fia).

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


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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 113.8 million euros on the national level which represents increases of 10,9%

for counterparts and 11,3 % for respectively.


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In terms of values accumulated, from January to November, the hotel units of the Algarve

registered 561.635.874 euros 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 criterias:

Geographic criteria:

The Algarve is the most visited place in Portugal by tourist. Per year there are circa 58.000

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.


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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.

0

10000

20000

30000

40000

50000

60000

North

Center

Lisboa

Alente

jo

Algave

Acores

Madeira

Division of tourists


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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


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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 kids 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 2nd and 3th

weekend of each month ECO SURF offers an ecological family weekend. (there is amaximum reservation of 3 familys 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 well take the familys 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 familys will have a meal

with local Portuguese people.

On Sundays the familys have a whole day of surfing lessons.


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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



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Body board

1 day 20 Euro

3 days 30 Euro

5 days 50 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 whatis 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.


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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 dont 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,


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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.


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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.


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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.


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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 e-mail 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.


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New Media

Internet is a media that almost everyone uses nowadays especially. By putting some

banners to several webpages 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 SURFs 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 wont 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.


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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.

2.

- Algarve Resorts (Lagos,


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some informative flyers and

merchandising in hotels and

Schools

Portimo, Vilamoura,

Sagres)

3.

- Algarve Resorts*

- Schools (Algarve, Lisbon)

6th May to 4th June 1. Mallings

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


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challenges. With professional

and amateur people.

Sponsor: Optimus and Reef

Stands:

Subscriptions to the school and

shop promotion.

6 th June to 6th

September

1. Mailings (For Resorts)

Advertising:

- JCdecaux and Billboards

(promotion of the new event)

- Special Magazines

- Radio

Algarve Resorts*

Advertising:

Billboards and JCdecaux:

Near to the beach and at

principal squares of the

cities, such as Lagos, Sagres,

Portimo and Vilamoura

Special Magazines:

Surf Magazines and Resorts

Magazines.

Radio:

Antenna 3

RFM

Mega FM

Regional Radios


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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.


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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.


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Business Strategy

We analysed the market very well and weve 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 weve 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. Well have to

promote towards familys 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 dont 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 theyll 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.


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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.


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6. Financial views

See computer file.


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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.


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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


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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


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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.


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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 sustainabilityof ECO SURF.


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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 387.544,-

. The total costs of the first year will be 322.584,-

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.


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

Logo

Webpage


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Teaser

Ecological platform


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Teaser

Billboard


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Billboard

Flyer


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Magazine

Merchandising


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10. Sources

1. Stutely, Richard (1999), The definitive business plan, Great Britain, Prentice Hall,Financial Times

2. www.min-economia.pt3. www.algarvesurfschool.com4. www.rathenau.com5. www.surfingportugal.com6. www.portugal-aktuell.de7. www.gettyimages.com8. www.tui.pl9. www.eds-destatis.de10.www.lokomatywa.pl11.www.praca.gazeta.pl12.www.urlaub-portugal-reise.de13.Billboard company Red Price Table
http://www.min.economia.pt/http://www.algarvesurfschool.com/http://www.rathenau.com/http://www.surfingportugal.com/http://www.portugal-aktuell.de/http://www.gettyimages.com/http://www.eds-destatis.de/http://www.lokomatywa.pl/http://www.lokomatywa.pl/http://www.praca.gazeta.pl/http://www.praca.gazeta.pl/http://www.urlaub-portugal-reise.de/http://www.urlaub-portugal-reise.de/http://www.urlaub-portugal-reise.de/http://www.praca.gazeta.pl/http://www.lokomatywa.pl/http://www.eds-destatis.de/http://www.gettyimages.com/http://www.portugal-aktuell.de/http://www.surfingportugal.com/http://www.rathenau.com/http://www.algarvesurfschool.com/http://www.min.economia.pt/

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