Market Analysis Of Kitesurfing Industry In Australia

Business Model Canvas

Even though sport tourism has engrossed high consideration among the scientific scholars, journals and articles, the game economic outlook on sport travel, affiliation selling in sports besides travel promotion, particularly for aquatic sports in Australia has casing a micro fraction of literature. Scientific mechanisms have dispensed chiefly with surfing the market in general, affiliation selling in sports, tourism and mobile marketing in Australia, a training of Australian kitesurfing arcade has been carried out(Mock & Garel, 2018).The study gave a chance to figure out the bazaar of this watersport, in addition to arcade sector, knowledge of consumer behaviour, wants and ethics. The writings assessment of Australian surfing shop is frolicking the part of vital contextual for this venture. In these regards business idea and survey outcomes are adopted (Ratten, 2017).

2.1 Customer Segments- the business would be specifically for precise target group, the efforts of marketing would be based on the pull marketing, in this case the customers would be able to look for product according to market research. The market would be segmented according to specific target groups like the age group, sex and the level of experience.

• Customer Relationships- a recent relationship have had more attention. Most sports firms mainly focus on long-term retention of customers and utilizing database management method to enhance and maintain relationship with customers.   

The aim of this business idea is to deliver a new service to the market of Australia with the goal of satisfying the needs of the customers. Provide a unique with an extra value more than what are provide by the Kitesurfing schools in Australia. To enjoy and have fun while learning. To adapt skills and knowledge in easy and clear way free of pressure and also making their trio extraordinary experience. To deliver water sports accomplishments and finally to provide reliable and quality course of kitesurfing under best coaches in Australia ((Joe & Fiona, 2018).

• Key Resources- the employees of this organization would be required to proof qualifications from ‘’ international Kiteboarding organization’’ IKO. An experienced personnel who would deal with the kitesurfing equipment would be required. The resources of this company would be divided into tangible and intangible assets.

Tangible assets:  

• Boards, kite bars, kites, harnesses, wetsuits and the trainer kites
• The vehicle
• Company phone and the computer
• Tool box
• Weather station

Intangible assets: the brand name, logo, customer list, insurance, employments contracts, permits, shareholders agreement, business knowledge, supplier contracts and copyrights.

There are 3 major competitors in Melbourne area, that is

1. The Kite republic- it is the most active group based in St Kilda. It was founded in the year 2000 and it is now leading in the market because of high number of instructors found in the beach. The institution offers variety of Kitesurfing lessons.
2. Zu Boarders- it is a Waterports and also a professional store found in St Kilda, Melbourne. The company majors on hiring Kiteboarding and Windsurfing and other resources to their clients. They also educate clients on Kitesurfing.

• GoKite-  its was founded in the year 2009, it is situated at St Kilda.  The company has grown into Rosebud on Peninsula. It operates at the centre of teaching position.

Seasonality- the port depend on wind and weather likewise to the business

Sharks- attack by sharks would affect clients psychologically. Many cases of sharks has always been witnessed in Australia.

No more permissions- local beach authorities may stop granting permissions to Kitesurfing businesses.

 Business mobility- the ability of business to have mobility power makes the business to be strong. The port depend so much on weather and wind.  The bus make it possible for clients to move around the coastal region when looking good conditions that favours the teaching practice.

Key Activities

Presents of Qualified Instructors- the instructor of the organization has great experience and best qualifications. The company would take quality as the first priority.

Flexible needs of the people- for the organization to have a high sustainability of the business there is need to adjust to all the needs of the people. The kitesurfing lessons should be delivered in the best way in a method that will be suitable for all. The sudden change in the wind might interfere with a pre-plan trip which would lower down the cost (Ratten, 2017).

The revue for the organization would vary according to time because it rely on weather and wind.  There is no guarantee to predict on the wind variation.  

• Cost Structure- the cost of kitesurfing would be based on the fix cost and the variable costs.

The in industry for tourism continues to enlarge rapidly with new methods to travel and explore the world. The modern technology and globalization has given new ideas to explore to remote areas. Backpacker tourism is currently trending in Australia, it has given and continue to give young people a lot of opportunities, to work, travel and walk around the world at a go. Australia is offering various things to practise, from the desert via surfer beaches and to the fancy cities. By adhering to the backpacker’s  needs for adventuring and gaining experience,  tourist adventure , which is now the rising segment, must be besieged for them. Adventure tourist is considered to be a crucial and rising market segment. The adventures are looking forward for adventure and they are after an interesting, unique and need to gain new experience. Mastering lifestyle of tourist may assist in designing advertising messages that are tailored to this unique market that is being targeted (Derriks, 2018).

Mojorsurf Camp Melbourne will be targeting two segments: the kitesurfers and the no-kitesurfers. Segments of the Kitesurfers would be the major focus of this business and non-kitesurfers would act as a corresponding target market (Tayebi, Bahmanpour, Mirkazemi & Rohany, 2018).

This should match the needs of the clients. Within this there would be a need to differentiate between, promotional strategy and pricing and distinctive product features (Riga, 2018).

The coastline of Australia is an important place for recreation resource. The surf tourism is enlarging rapidly and it is increasing the market segmentation to a wide sport in the tourism industry. The surf tourism features travel to aid surfing, learning surfing or visiting surfing activities. There are three categories of surf tourists (Villamil, 2018) this are

1. Hard surf- this are the tourist who travel with the intention of just surfing
2. Incidental surf- this are the tourist who are have little knowledge in kitesurfing

• Soft surf- this are the tourist with an aid of surfing.

Key Partners

The traveling behaviour depends on motivations of wide range, the market for this activity is mostly diverse thus market segmentation is very necessary for the company to reach their specific target groups. Segmentation is very important because it gives a simple understanding a specific groups which poses similar behaviour and characteristics. Market segmentation would be applied in different ways like demographics, geographic, social-economic and psychographics. The segmentation in Kitesurfing industry should concentrate more on motivational travelling, behaviours. It should also address the customer’s features and preferences (Setili, 2017).

According to the reports from Surf industry, Surf coast has been the primary destination for kitesurfing as well as an entrance to Great Ocean Road. This is among the world’s supreme charming coastal drives. The Coast Surf shire recorded sum of 1.6 million tourist in the year 2017 this an increase of 20 percent compared to the previous years. This actually shows the potential business idea to invest in. Major surf Melbourne is targeting to accommodate 5000 tourist at a go at the beginning of next year 2019 and their target is to accommodate more than 5000 travellers within the next four years (Conradie, 2018).

The mangers for Mojorsurf Camp Melbourne would responsible for planning, staffing organizing, organizing, directing and controlling all the kitesurfing activities of the company. Managers would be assisted by the field instructors and the technical experts. The instructors would give guidelines to the clients whereas the technical experts would handle technical problems such as equipment repair and maintenance (Pham & Pearce, 2017).

Like we have side early the Mojorsurf Camp Melbourne would be sorely own by a group of 5 fresh graduates who are the entrepreneurs and their roles would be:

1. Planning- this is the pre-determine course of performance.
2. Organizing- this refers to assembling man power, material, money, machinery and other resources to execute plans of the organizations.

• Staffing – this is the human resource planning and management.

1. Directing – the entrepreneurs in this case counsel guides stimulate and teaches the employees to perform their work effectively and efficiently.
2. Controlling- this is the comparison between the set standards and the actual performance.

The proposed business strategy would help the business to grow and increase the sales, the following are the growth strategies that would be employed:

1. Market penetration- this is the ability of the product to be recognize by the customers, for instance, the company may lower the prices to entice customers.
2. Market expansion- this strategy is also called market development, this involves the process of selling the same product in a new market.

• Product expansion-  this strategy involves involve adding  more features to a certain product or service to make it increase the value hence making the profit to be higher

1. Diversification strategy- this is the process of selling a newly product to a new-fangled market.
2. Acquisition strategy- the company may plan in the near future to purchase another company to increase their operations.

The organization would look at technologies in product design, riding and graphic design, it wold be able to step out innovation in each level and conspire and align with clients who are after technological advancement. In regards to brand, the organizations attitude towards technology is going to be unique to the competitors, the central motive is the desire to invent and innovate which would affect the business positively and hence cause rise in the revenue (Wo?niak, Kulczyk & Derek, 2018).

1. Universal Common sense Guidelines- elude collusions, even if you are on your right way;

Maintain clear of minimum navigable watercrafts; all refreshment water will be free of commercial ships and the sailing watercrafts

1. Traditional rules for sailing- a boat on a port screw with  wind on the side of the port will clear a port on the starboard screw, this is the opposite screw rule.

• Wave sailing rule- a surf sailor heading in tends to keep vibrant of a wave, this is the opposite track rule (Tomik, Kosmala & Ardenska, 2017).

Threats

Trade marks- according to the constitution, the company would be protected against trading and the brand name.

Copyright and designs- the company would be protected from their written and creative works.

Patent right- the company invention in local and abroad is protected.

General

• the kites must always be update the third party insurance policy
• the beginners must always seek instructions from their professionals
• every client must carry out  personal risk assessment
• Clients should always beware of fluctuating weather conditions.

Equipment

• The manufactures instruction for all the equipment must be read with cautions and the guidelines should be read and followed accordingly before using it in the water.
• The equipment should be checked regularly for possibility of wear and tear.
• The kitesurfing cite should always be equipped with safety equipment.       

The business would be privately owned by 5 young graduates, the initial source of capital for the organization would be: (Park & Chae & Cho, 2017).

1. Bootstrapping also known as self-funding
2. Contribution from family and friends

• Contribution from private investors

1. Government funding initiatives for youths

The following table shows offers in regards to fix and variable costs of operating the business. 

The table below summarise the initial cost, the kitesurfing cost is assumed in regards to the cost price which the board companies and the kites can offer to the Mojorsurf. The figure bellows shows the initial cost

START-UP COSTS	Cost ($)	EQUIPMENT/CAPITAL COSTS	Cost ($)
Registrations	20	Business purchase price	30
Business name	50	Franchise fees	25
Licences	100	Start-up capital	5000
Permits	45	Plant & equipment	35
Domain names	10	Computer equipment	2000
Trade marks/designs/patents	50	Security	15
Vehicle registration	12	Computer software	08
Membership fees	10	Phones	05
Accountant fees	10	Fax machine	30
Solicitor fees	12	Security system	20
Rental lease cost (Rent advance/deposit)	20	Office equipment	50
Utility connections & bonds (Electricity, gas, water)	08	Furniture	50
Phone connection	10	Shop fit out	500
Internet connection	13
Computer software	15
Training	10
Wages	50
Stock/raw materials	50
Insurance	12
Building & contents	100
Vehicle	500
Public liability	20
Professional indemnity	16
Product liability	15
Workers compensation	100
Business assets	2000
Business revenue	20
Printing	10
Stationery & office supplies	15
Marketing & advertising	200
Total start-up costs	$ 3,600	Total equipment/capital costs	$ 7,768

Profit and loss for Mojorsurf Camp Melbourne as at 2018-2020 

PROFIT & LOSS	October	November	2018	2019	2020
Sales	950	850	30520	29050	28500
less cost of goods sold	500	420	12500	14500	15500
Gross profit/net sales	$450	$430	$18020	$14550	$13000
Expenses
Accountant fees	15	15	180	180	180
Advertising & marketing	10	10	120	110	130
Bank fees & charges	12	12	120	105	115
Bank interest	10	10	120	115	100
Credit card fees	16	16	190	190	190
Utilities (electricity, gas, water)	10	10	120	130	100
Telephone	08	08	105	95	100
Lease/loan payments	15	15	180	180	180
Rent & rates	20	20	240	240	240
Motor vehicle expenses	15	15	180	100	110
Repairs & maintenance	10	10	120	130	140
Stationery & printing	15	15	180	190	170
Insurance	10	20	200	180	220
Superannuation	12	12	120	100	150
Income tax	10	10	120	120	120
Wages (including PAYG)	15	15	120	200	120
More…	12	12	120	100	90
Total expenses	$215	$215	$2535	$2465	$2455
NET PROFIT (Net Income)	$235	$215	$15485	$12085	$10545

The statement above is estimated for the 3 years from the start of the business. The calculation was derived from the income from the kitesurfing activities each month. 

Conclusion 

This business plan have outline several factors that can be followed and adhered to while setting up a new business venture, it has look at the market strategies, the cost valuation, the business growth strategy, ethical issues, intellectual properties among other factors that are essential for any business plan. 

References

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Joe, T. and Fiona, S., 2018. Innovation heroes: understanding customers as a valuable innovation resource (Vol. 31). World Scientific.

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Setili, A., 2017. Fearless Growth: The New Rules to Stay Competitive, Foster Innovation, and Dominate Your Markets. Red Wheel/Weiser.

Tayebi Sani, S.M., Bahmanpour, H., Mirkazemi, S.H. and Rohany, A., 2018. Shahrood sport tourism planning using SWOT technique with emphasis on natural attractions. Journal of Tourism Hospitality Research, 7(1.2), pp.65-82.

Tomik, R., Kosmala, G. and Ardenska, A., 2017. Active sport tourism in Poland: environmental condition and motivational aspect. European Journal of Geography, 8(1), pp.129-138.

Villamil, J.A., 2018. Towards a technology and agglomeration platform of the colombian caribbean shipyard sector. Ciencia y tecnología de buques, 12(23), pp.9-20.

Wo?niak, E., Kulczyk, S. and Derek, M., 2018. From intrinsic to service potential: An approach to assess tourism landscape potential. Landscape and Urban Planning, 170, pp.209-220.