IBP Project StingAway: Innovative Stingray Deterrent Solution

Week Four: IBP Project : StingAway 1 Week Four Assignment – IBP Project : StingAway Tiare Secrest, 900465687, Julio Cesar Lopez - 023858570 IBU606 Global Business Professor Matthew Jordan National University 2/25/2023

Week Four: IBP Project : StingAway 2 Week 4 IBP Project StingAway 1. Course No/Title a. IBU 606: Week 4 IBP Project StingAway 2. Name of the Professor and Course Term/Month a. Professor Matthew Jordan, Winter February 2023 3. Team Number and Designated Team Leader a. Group 6 b. Team Leaders: Julio Lopez & Tiare Secrest 4. Team member names, NU ID numbers. a. Julio Lopez, 023858570 b. Tiare Secrest, 900465687 5. Name of the Assigned Foreign Nation a. Australia 6. Team Company Name and Logo (be creative) - Meaning of the company name, meaning of the company logo, company mission and structure. Meaning of Company Name: StingAway! We selected this name as our product is a stingray deterrent that can be worn as either a bracelet or anklet. “Most stingray injuries occur on the legs or feet after unwary people step on or disturb the animals in shallow water. It is clearly dangerous to swim directly over a stingray.” (Potter, 2006). A way to prevent injuries would be a repellent offered to swimmers in coastal areas to stay safe and enjoy their recreational activities. In coastal areas, a repellent would be great to keep families safe and increase safety for swimmers and stingray species.

Week Four: IBP Project : StingAway 3 Company Logo & Meaning: The company logo features the brand name as well as an image of a stingray. The logo is kept minimalistic so that it can be easily featured and read on the company’s product. The stingray is shown to represent what our product deters. Company Mission & Structure: Our company’s mission is to deliver ocean safety, protecting beachgoers from stingray- related injuries through preventative measures while advocating for marine education. CEO: Tiare Secrest CMO: Julio Lopez 7. Tangible (not a service) new product and description (uses and benefits) StingAway is a stingray deterrent that can be worn as a bracelet or anklet. The product is sleek and meant to fit comfortably on beachgoers while they participate in watersport activities or walking in the shallow water areas where stingrays are common. The product features a secure fastener to ensure it stays on if strenuous activities occur. StingAway’s technology deters stingrays away from those wearing the product and thus helps prevent stingray-related injuries such as stings.

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Week Four: IBP Project : StingAway 4 8. Identification of the industry for the new product There are many companies that produce repellent solutions in Australia and there are only a few companies that feature that type of product. The popularity of swimming is high in Australia, and they have a population of 25.77 million, their GDP stands at 1.64 trillion U.S. dollars, and life expectancy is averaged at 83.2 years of age. (O'Neill, 2022) Australia is one of the biggest importers in the world and according to a study published, “Australia is an export nation, generating yearly exports of around $195 billion and importing around $187 billion per year. The country has achieved a positive trade balance of around $8 billion, yet we also rely heavily on imports.” (Shonae, 2023) The sector that Stingway falls under would be Agriculture chemicals and products, that department code identifies which chemicals and products need to be registered or approved by the Australian Pesticides and Veterinary Medicines Authority (APVMA) and which products are exempt. The band with the product would meet very little resistance from the government and some other products that are similar have been introduced in the economy. The main competition comes from other manufacturers in the United States which have a similar design but are limited to just mail distribution. To better position Stingaway, price and distribution would be strategically thought out to capture the interest of the high swimmer population in Australia marketing it with better pricing to gain a quick entrance to the market. 9. Marketing Objectives/Strategies/Tactics 1. Product range – What is our total, core and auxiliary product? What are the product ingredients? What are the product features? How is the product used? What are the

Week Four: IBP Project : StingAway 5 benefits of our Product? How much we buy/produce? Where do we buy/produce? How do we package and label our product? 1. The core product is safety and peace of mind for our consumers when doing activities in the ocean. The total product includes a sleek and comfortable bracelet/anklet that can help prevent stingray-related injuries. The product is used by being worn as either a bracelet or anklet on an individual when in the ocean. StingAway’s technology deters stingrays away from the individual wearing the product. The benefits of our product include ocean safety for beachgoers and prevention from stingray-related injuries. We package our products in a small recyclable box with our logo found on the top of the box as well as on the bracelet/anklet itself. Main competitor SharkBanz has sold over 117,727 units at a 130 price tag on Amazon according to their website. (Flexport, 2023) Positioning StingAway at a lower cost will be advantageous and allow the company to compete by making a more affordable option available. A forecast for units would be around 200,000 at a cost of 100 dollars per unit, by meeting the target revenues can reach around 20 million which will surpass the current market gain that Sharkbanz has. 2. Target consumers/market segments – Who we market it to? What is our target customer’s profile? What are our market segments? 1. We market to beachgoers within the coastal cities along Australia. Our target customer’s profile includes active individuals who partake in watersports or swimming at the beach. Our target consumer’s demographic age ranges from elementary school to older adults and no specific targeted gender or race. Target consumers include beachgoers, surfers, swimmers, etc. who live in Australian beach/coastal areas. Geographic segmentation includes suburban

Week Four: IBP Project : StingAway 6 locations on the coast, specifically southern Sydney, New South Wales, and the northern coast of Australia. 3. Target markets – Where do we find our customers? Where do we market? 1. Our customers are found on the Australian coast, many near popular beaches where swimming and other water sports are common. We market heavily in popular beach areas such as New South Wales, where stingray injury incidents are very high. Within this region, “between September 1, 2013, and December 31, 2016, there were 116 incidents involving stingrays” (Hoh, 2017). We market in southern Sydney and the northern coast of Australia as these regions experienced the “greatest number of calls made to triple-0 relating to a stingray incident” (Hoh, 2017). We market our products in local water sports stores and coastal hotels to target our specific market segment. In 2018, Australia had nearly 9 million tourists visit with a majority traveling to the coastal areas (Monaco, 2018). Australia’s marine attractions and coastlines are the most popular places visited by tourists. The Great Barrier Reef recorded around “2.3 million international and 1.8 million domestic visitors per year” (Becken, 2016). These coastal areas with lots of marine life are where we find our customers. One particular type of coastal tourism in Australia that categorizes our target market is beach and surf tourism. This is defined as the most prevalent tourism “and is relevant along the whole coastline of Australia… typical activities include walking, swimming, sunbathing, surfing, sports events” (Becken, 2016). Individuals participating in such activities are our target customers as they are most at-risk for stingray injuries in the ocean. 4. Market share/market growth – What is the size of the total market? How much we market? When we market?

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Week Four: IBP Project : StingAway 7 Australia is a great economic market to enter and shows great promise due to the management of the COVID crisis of 2020. Australia was ranked 13th biggest based on its Gross Domestic Product based on a survey by The World Bank. (World Bank, 2022) In addition to their GDP, their top imports of Australia are Cars ($13.7B), Refined Petroleum ($10.8B), Gold ($6.49B), Broadcasting Equipment ($6.38B), and Computers ($5.76B), importing mostly from China ($57.2B), United States ($24.2B), Japan ($12.2B), Thailand ($10.4B), and Germany ($9.67B). In 2020, Australia was the world's biggest importer of Sodium or Potassium Peroxides ($502M) and Horsehair Fabric ($2.06M). (Observatory of Economic Complexity et al., 2022) Their open import market potential allows Stingaway to gain market share from an already thriving economy. The opportunities are based on meeting the standards of the Australian Government’s Australian Pesticides and Veterinary Medicines Authority which regulates personal and domestic commercial repellants of wildlife like insects and animals. After meeting their criteria and getting Australia’s approval with import guidelines and policies, Stingaway can market to certain target audiences. According to a recent research study conducted in the nation of Australia, swimming is identified as the continent’s most popular sport. (Morgan, 2018) They concluded that over 6 million people recreationally swim on a regular basis and are in coastal waters. They participate in this recreational activity due to the warm weather and the coast that surround the whole continent. Ideally, people who swim buy gear and come across

Week Four: IBP Project : StingAway 8 Australia’s wildlife when recreating. Australia has 132 ray species in our ocean territory, from the tropics to sub-Antarctic seas, and many are only found in Australia. (University of Tasmania, Australia, 2022) Swimming puts likely encounters possible and the interactions between swimmers and rays are inevitable but with repellents, it is possible to avoid injuries. Most Popular Sports & Activities participated regularly or occasionally. Source: (Morgan, 2018) Since swimming is a recreational activity that many people participate in Australia, it is possible to market to swimmers to carry StingAway with them every time they touch the waters of their coast. For example, every year, about 1,500-2,000 stingray injuries are reported in the US and they double in Australia due to more swimmers and more coastal waters around the continent present. Even though Rays have a certain reputation, the stingray is a shy and even gentle fish that does not confront threats but swims away. It uses its

Week Four: IBP Project : StingAway 9 defenses for its natural predators like sharks and other carnivorous fish that it needs to protect itself from. It only feels threatened by humans when they step on them and there are unintentional interactions that cause the species to protect themselves and this is usually when humans swim. With this repellant, we can avoid encounters and it is one less worry that a swimmer has and allows rays to coexist without injury to humans and animals. e. Competitive advantages/competition – Who are our competitors? What are their strengths & weaknesses? What are their Four Ps? Competitors: There is only one popular brand Sharkbanz by Flexport that makes a repellent when swimming to avoid creatures in the ocean which are mainly sharks. They use a bracelet with a magnet and plastic to deter sharks when swimmers are close to these fish. They claim that it also works on other species like rays, and it causes them to swim away from areas where humans are. They have patented the technology and sell their repellent online and are present in Australia. The company is based out of Santa Barbara California with $70,000 in extra sales generated 117,727 total units shipped with Flexport according to their company website (Flexport, 2023). “Their flagship product is the first wearable band that surfers, divers, swimmers, beachgoers, and even Navy SEALS wear on their wrists or ankles to deter sharks. As part of their company mission, Sharkbanz optimizes their technology to help

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Week Four: IBP Project : StingAway 10 ocean-focused industries grow” (Flexport, 2023). They have a strong presence in this area due to the time they started up which was in 2014. Strengths: i. Patented technology that is effective in repelling wildlife in the oceans including all species of rays which is our target animal. ii. Existing exports to Australia from the United States which have existing agreements and presence in the country. iii. Founded in 2014 and has been operational longer with existing distribution channels through internet fulfillment. Weaknesses: iv. Their price per unit costs is higher than most swimming accessories making it a luxury item for most swimmers which is 134.95 based on their websites. iv. There is no retail or in-person distribution and orders to consumers are fulfilled by parcel companies that operate in Australia. iv. Sharkbanz wanted to grow its customer base globally, but it faced freight inefficiencies making their growth very slow in a small industry which gives any other company time to catch up and take market share. Four P’s: Their “marketing mix” comprised four key elements—product, price, place, and promotion which has helped them capture market share worldwide with their repellent product.

Week Four: IBP Project : StingAway 11 Product : It is a wearable wristband that you place on your wrist or ankle and is lightweight and blends with swimming attire. Magnet and rubber technology offers convenient protection for sharks and rays in a variety of activities. They are designed to prevent the most common hit-and-run attacks from most shark species found in shallow coastal waters around the world. Price: The price for their repellent is $134.95 which has been labeled on their website as well as on Amazon. Is it priced for more continued swimmers and not the average swimmers making the product expensive for recreational swimmers. Placement : According to their website, “Flexport’s Flow Direct solution eliminated supply chain bottlenecks while freeing up their founder’s bandwidth to focus on growth. Today, Sharkbanz benefits from transit times that are nearly half that of industry standards.” (Flexport, 2023) Promotion : Sharkbanz is promoted through social media, search engines like Google and Bing, email blasts, and its digital marketing on sites like Amazon. 10. Marketing Objectives/Strategies/Tactics a. Our cost per unit is around $26. Our pricing objective is to be more affordable for the average water sport and beachgoer consumers than our competitors. Our forecasted production units would be around 200,000 units at a selling price of $100 per unit. This price would allow us to compete with SharkBanz by having StingAway be the more affordable option available in the market. With

Week Four: IBP Project : StingAway 12 Sharkbanz already having a presence within Australia, our pricing strategy is essential for us to surpass their market gain. The current price tag for Sharkbanz is $130 which will be met with a lower price item that will help with a price pricing strategy to gain market share. Penetration Pricing Strategy “Marketers use penetration pricing to gain market share by offering their goods and services at prices lower than those of the competitors.” (Woodruff, 2019) b. Our product is packaged in a small recyclable box with our logo found on the top of the box. Promoting our product with eco-friendly packaging also benefits our brand’s representation. We advertise the product on both an internet website as well do as social media. StingAway’s website offers further information on the company, its mission, and our product. It also includes links to social media profiles for consumers to view the product in action. With much of our target market being younger than 50-60 years old and active, many of our potential consumers utilize social media. Social media apps such as Instagram and Tiktok are used to market our products. Users on these apps are significantly influenced into purchasing products and in one study it was found that, “49% of users said they’ve purchased a product after seeing it promoted on TikTok” (Wiley, 2022). To further brand awareness and make our product more recognizable, we also utilize creators and influencers to promote our product. Creating brand deals with popular water sport professionals (such as Kelly Slater, Koa Rothman, Ethan Ewing, and Coco Ho) can also help us target a more specific audience who possess a more active lifestyle. Partnering with famous professionals known worldwide also provides further recognition to our brand’s name by consumers in

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Week Four: IBP Project : StingAway 13 different countries. Along with Tiktoks, StingAway also possesses a strong presence on Instagram with the use of Instagram Reels and posting consistently on the account. It was estimated that Instagram “reels take up 30% of the time people spend on Instagram, and this number is growing fast, up 50% from the 20% reported in Meta’s Q2 2022 earnings call” (Newberry, 2023). Consumers are also able to utilize the Shop tab on Instagram’s home page to purchase the StingAway product directly from our company’s Instagram profile. Around 80% of Instagram users follow at least one business account and around 200 million users visit a business profile on a daily average (Schaffer, 2022). A strong social media presence also allows potential customers to contact the business directly regarding questions/concerns if they prefer that over emailing from our website. The message of our advertisements is that our product can be used by anyone that frequents the beach as it fits comfortably for any activity and promotes ocean safety. The theme of our advertisements is essentially ocean safety and promoting an environmentally-safe way to interact with marine life. Market entry/outlets c. Main competition like Sharkbanz distributes through shipping parcel companies and they have only an online presence. With StingAway the same will be for online distribution to meet online demand and allow for applications to be made for additional features like smart tips and group swimmers. A partnership would be advantageous with a company like Nike which has physical stores in multiple coastal cities in Australia. According to a data company called ScrapeHero, “There are 57 Nike retail stores in Australia as of September 15, 2021. The state with the most number of Nike locations in Australia is New South Wales, with

Week Four: IBP Project : StingAway 14 22 retail stores, which is about 39% of all Nike retail stores in Australia. 57 Locations6States and Territories53 Cities.” (ScrapeHero, 2021) Using a physical presence in coastal areas will expose our brand to more swimmers which will create better awareness of our repellent. It will be an easier transition to export and help generate revenues for Stingaway and use Nike to help sponsor their strong existing relationship with Australia. 57 Locations 6 States and Territories 53 Cities

Week Four: IBP Project : StingAway 15 d. StingAway enters the market by targeting the high swimmer population along the coastal cities within Australia. To gain further interest, we price our product at a more affordable rate in order to gain quicker entrance into the market. Our delivery time is between five to seven business days depending on the distance between the destination and the closest StingAway packaging and shipping center. If shipping from the United States location to an overseas location, our delivery cost is around $15 via USPS as the carrier. Shipping within the United States, the delivery cost is $8.45 via USPS. e. We market to further our brand image and awareness to potential customers. StingAway markets to connect the right customers to our product with strategic marketing. Around 91% of executives plan to increase social media marketing budgets in the next few years. Additionally, over half of them anticipated increasing the budget by over 50% (Cover, 2022). Marketing StingAway to consumers in new foreign markets is essential in expanding business overseas. Australia’s swimmer’s common recreational activity creates a market segment in the continent to allow a successful venture like a repellent by StingAway to fit the needs of safety in the waters. 11. Business Analysis – Forecasting, breakeven, and personnel and administrative aspects. The initial partnership with Nike will allow for a physical footprint to be set and allow to reach more potential swimmers in coastal areas. In addition, fulfillment via parcel companies will allow for meeting demand on two fronts which will be brick and mortar and on the internet. Setting up the desired expectations will allow for future company growth. An article

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Week Four: IBP Project : StingAway 16 written on financial strategy, “Forecasting is valuable to businesses so that they can make informed business decisions. Financial forecasts are fundamentally informed guesses, and there are risks involved in relying on past data and methods that cannot include certain variables.” (Beattie, 2022) Forecasting for operations for the first year we estimate a cost of 26 dollars per unit and within the first year we want to reach 200,000 units sold. The initial investment for this many units at a 26-dollar cost would be 5,200,000 to break even. Selling 52,000 units quarterly in the first year would allow a met goal of 20,800,000 in revenue generated. This would create a profit of 15,600,000 dollars when meeting forecast numbers and selling set goal units. Time Forecast Revenue Total Year Revenue Sale Unit Goal Forecast Close Profit Quarter One $ 5,200,000.00 $ 5,200,000.00 52000 March 2023 $ - Quarter Two $ 5,200,000.00 $ 10,400,000.00 52000 June 2023 $ 5,200,000.00 Quarter Three $ 5,200,000.00 $ 15,600,000.00 52000 September 2023 $ 10,400,000.0 0 Quarter Four $ 5,200,000.00 $ 20,800,000.00 52000 December 2023 $ 15,600,000.0 0

Week Four: IBP Project : StingAway 17 References Beattie, A. (2022, October 5). What is business forecasting? definition, methods, and model . Investopedia. Retrieved February 25, 2023, from https://www.investopedia.com/articles/financial-theory/11/basics-business- forcasting.asp#:~:text=Forecasting%20is%20valuable%20to%20businesses,that%20cannot %20include%20certain%20variables. Becken, S. (2016). On Coastal Tourism - Home | CoastAdapt . Retrieved February 14, 2023, from https://coastadapt.com.au/sites/default/files/factsheets/T312_7_Coastal_Tourism.pdf. Cover, L. (2022, June 10). 7 statistics that prove the importance of social media marketing in business . Sprout Social. Retrieved February 19, 2023, from https://sproutsocial.com/insights/importance-of-social-media-marketing-in-business/. Deepblu. (2020, February 15). The truth about stingrays . Deepblu Mag. Retrieved February 19, 2023, from https://www.deepblu.com/mag/index.php/2019/07/19/are-stingrays-dangerous/. Flexport. (2023). Shark deterrent technology leader SHARKBANZ streamlines global shipments with Flexport's flow direct . Flexport. Retrieved February 13, 2023, from https://www.flexport.com/customers/Sharkbanz/. Hoh, A. (2017, January 18). Rate of stingray injuries prompts warning from paramedics . ABC News. Retrieved February 13, 2023, from https://www.abc.net.au/news/2017-01-18/rate- of-stingray-injuries-prompts-warning-from-paramedics/8190800 Monaco, S. (2018, November 19). Marine and Coastal Environments: Tourism vs conservation . Integrate Sustainability. Retrieved February 13, 2023, from https://www.integratesustainability.com.au/2018/11/19/marine-and-coastal-environments- tourism-vs-conservation/. Morgan, R. (2018, February 15). Six million Australians make Swimming the ‘Number 1 Sport.’ . Home - Roy morgan research. Retrieved February 13, 2023, from https://www.roymorgan.com/findings/six-million-australians-make-swimming-number-1- sport. Myers, J. N. (2023, January 10). Are stingrays actually dangerous? 3 reasons you shouldn't fear these sea pancakes . The Conversation. Retrieved February 19, 2023, from https://theconversation.com/are-stingrays-actually-dangerous-3-reasons-you-shouldnt-fear- these-sea-pancakes-196390#:~:text=Thousands%20of%20stingray%20injuries%20are,and %20fewer%20than%2020%20worldwide. National Geographic. (2023). Stingrays: National geographic . Animals. Retrieved February 19, 2023, from https://www.nationalgeographic.com/animals/fish/facts/stingrays.

Week Four: IBP Project : StingAway 18 Newberry, C. (2023, January 24). 34 Instagram stats marketers need to know in 2023 . Social Media Marketing & Management Dashboard. Retrieved February 19, 2023, from https://blog.hootsuite.com/instagram-statistics/. Observatory of Economic Complexity. (2022). The observatory of economic complexity . OEC. Retrieved February 13, 2023, from https://oec.world/en/profile/country/aus. Observatory of Economic Complexity. (2022). The observatory of economic complexity . OEC. Retrieved February 19, 2023, from https://oec.world/en/profile/country/aus. O'Neill, A. (2022). Topic: Australia . Statista. Retrieved February 13, 2023, from https://www.statista.com/topics/752/australia/. Potter, A. (2006, September 12). Are stingray tours safe? NBCNews.com. Retrieved February 13, 2023, from https://www.nbcnews.com/id/wbna14800994. Potter, A. (2006, September 12). Are stingray tours safe? NBCNews.com. Retrieved February 19, 2023, from https://www.nbcnews.com/id/wbna14800994. Rinaldi, G. (2023). Surfing in Costa Rica: The Truth About Stingrays & Jellyfish . Uvita 360 Costa Rica. Retrieved February 19, 2023, from https://www.uvita360.com/2011/07/31/surfing-in-costa-rica-the-truth-about-stingrays- jellyfish/. Schaffer, B. N., Ceambur, A., Herman, J., Mathew, G., & Schaffer, N. (2022, December 5). The 31 definitive Instagram statistics for 2023 you should know - and why . Social Media & Influencer Marketing Speaker, Consultant & Author. Retrieved February 19, 2023, from https://nealschaffer.com/instagram-statistics/. ScrapeHero. (2021, September 15). Number of Nike locations in Australia in 2021 . ScrapeHero. Retrieved February 19, 2023, from https://www.scrapehero.com/location-reports/Nike- Australia/. Shonae. (2023, January 23). Australia's top 10 imports and exports: Where does your industry sit? International Cargo Express. Retrieved February 13, 2023, from https://icecargo.com.au/top-10-imports-exports/#:~:text=Australia%20is%20an%20export %20nation,around%20%24187%20billion%20per%20year. SydneyDives. (2023). Rays . SydneyDives. Retrieved February 19, 2023, from https://www.sydneydives.com/rays.html. University of Tasmania, Australia. (2022, October 28). Assessing Australia's rays for Sustainability Report Card . Institute for Marine and Antarctic Studies - University of Tasmania, Australia. Retrieved February 13, 2023, from https://www.imas.utas.edu.au/news/news-items/assessing-australias-rays-for-sustainability- report-card.

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Week Four: IBP Project : StingAway 19 Wiley, D. (2022, November 8). Council post: 3 tiktok marketing strategies every brand should embrace . Forbes. Retrieved February 19, 2023, from https://www.forbes.com/sites/forbesagencycouncil/2022/07/07/3-tiktok-marketing- strategies-every-brand-should-embrace/?sh=53411c5e43f7. Woodruff, J. (2019, March 4). Different types of pricing strategy . Small Business - Chron.com. Retrieved February 19, 2023, from https://smallbusiness.chron.com/different-types- pricing-strategy-4688.html. World Bank. (2022, November 18). Data Catalog. Retrieved February 13, 2023, from https://datacatalog.worldbank.org/search/dataset/0038130.

IBU606 Week Four Assignment

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