MARKET INSIGHTS

TEAM BIG DADDYADAM PIRON / GERALD CARVALHO / JACOB GUERNSEY / MARIA MACEDO / NAOMI KIESER

> Executive Summary

> Why Alite & Background

> Objectives

> Research Methodology

> Experience Investigation

> Customer Segments

> Findings & Insights

> Competitive Landscape

> Recommendations & Conclusion

TOPIC AREAS

EXECUTIVE SUMMARY > Alite is a fun brand with excellently designed products; however, they could have a better understanding of their target market

> Active campers think it’s too expensive and niche for their needs

> People who love “the outdoors” don’t necessarily like camping — risky to build business model around changing customer behavior

> Alite is designing for the right customer segment (20s / 30s urbanite) but the wrong experience: meet your customers where they are, not where you want them to be

> There is a huge unmet need within the experiences of comfort and freedom that urban explorers want (i.e. parks, beaches, festivals) — Alite could be the brand that facilitates this

> Local Brand

> Unique value proposition

> Well designed products

> ... so much potential!

WHY ALITE?

“Outside made simple”

Founded in 2010 by Tae Kim Former Design Director of The North Face

> Well-designed products that are extremely functional, ridiculously fun and easy to use

> Targets city dwellers in their 20s/30s looking for fun ways to explore nature

> The brand promise is less about technical equipment and more about having fun outside

> Known for Monarch “tent-pole” chair and other quirky products (i.e. a sleeping bag that can zip to others, called Sexy Hotness)

BACKGROUND

HAVE HAVE HAVEHAVE HAVE HAVEHAVE HAVEHAVE HAVE HAVEHAVE HAVEHAVE HAVE HAVEHAVE HAVE HAVEHAVE HAVE HAVEHAVE HAVE HAVEHAVE HAVE HAVE HAVE

Triple sales (market share) by 2016 and increase brand awareness to become the #1 outdoor equipment company for city dwellers in the SF Bay Area

Market research – the brand experience > What do their customers want? > How can that experience be delivered: define a marketing strategy

OBJECTIVES

METHODOLOGY

1 : 1 interviewsQUALITATIVE RESEARCH

INTERVIEW LOCATIONS

SF PARKSDolores Park, Golden Gate &Washington Square

UNIVERSITY CAMPUS

ASU, Phoenix, AZOUTDOOR GEAR RETAIL STORE

REI, San Carlos, CA

TARGETED URBAN 20s AND 30s WITH AN INTEREST IN “THE OUTDOORS”

32 PEOPLE

What are the experiences people want from the outdoors?

URBAN EXPLORERS ACTIVE CAMPERS HARDCORE CAMPERS

[ [[COMFORT FREEDOM WONDER ACCOMPLISHMENT

URBAN EXPLORERS [ FREEDOM + COMFORT ]

> Being outside is really important

> Hang out often at parks in the city

> Have camped a few times or never camped

> ‘Hike’ around the city

> Have some camping gear (chairs, maybe a sleeping bag) but don’t feel like spending much money on it; if they were to, it would be restricted to one “high quality / outdoor technical” product purchase

> Looking for a sense of living without constraints (away from the “concrete jungle”) yet within the convenience of the city (phone coverage, restaurants, transportation home)

RELATIONSHIP TO ALITE

> “They are too expensive. I am not so into camping that I would want this, and if I was, I’d go with The North Face” - Amanda

> Open to purchasing goofy outdoor gear but Alite is not designing directly for the experiences they want (freedom and comfort)

ACTIVE CAMPERS [ FREEDOM + WONDER ]

> ‘The outdoors’ is really important

> Sometimes hang out at parks in the city

> Hike, car camp or backpack often (3-5 times a year)

> Have their own camping gear (usually from big known outdoor gear brands) and spend a fair amount of money for it

> Know a fair amount about the market, the products and features

> Looking to get out of the city frequently and experience the awe of nature, a majestic creation beyond their everyday lives

> “It looks too goofy and you cannot tell if it is good quality — when you are camping it’s all about simplicity and function” - Julia

> Needs just one set of camping gear to fulfill all their camping needs; likely to purchase a technically focused, “serious” brand over Alite

RELATIONSHIP TO ALITE

HARDCORE CAMPERS [WONDER + ACCOMPLISHMENT]

> The outdoors, specifically backcountry camping, is essential to their happiness

> Don’t hang out at parks very regularly

> Go backpacking frequently

> Have a lot of technical camping gear for every kind of camping experience

> Love to get out into the depths of pure wilderness for days on end

RELATIONSHIP TO ALITE

> “I’ve never heard of it” - Sean

> Indifferent to Alite as they are not aware of the brand; looking for technical, functional gear that aids their intense outdoor adventures

FINDINGS & INSIGHTSBranding

> No brand awareness within any of the customer segments, even when individuals own the product (e.g. chair, backpack)

> Confusion around brand identity: multiple logos, inconsistent nomenclature, opaque name … people don’t get it

Pricing > Pricing for Alite’s camping gear is above the expectation: hard to justify

a “goofy” approach at this price point for any customer

Lifestyle > Existing Alite products are enjoyed most in an urban environment; often

perceived as as lower-quality or ‘diet’ camping gear to devoted outdoor enthusiasts

FINDINGS & INSIGHTSProduct market fit

> Urban explorers that enjoy “the outdoors” do not necessarily like camping and are not inclined to spend a lot money on an activity that is not part of their lifestyle

> Active campers need only one set of high-quality, expensive camping gear and they will almost always choose a technically focused brand such as The North Face

> Hardcore campers are not a current target for Alite and many brands already cater to this segment

Missing the target > Good intentions but at this price point, Alite is an unlikely purchase for any of the customer

segments: hardcore and active campers would likely purchase elsewhere, and urban explorers prefer different activities over camping

> Huge opportunity around the ‘urban outdoors’ — designing products specifically intended for use at the parks, festivals, and beaches that are so central to the Bay Area city dweller lifestyle; currently few brands occupy this space

Right demographic. Wrong experience.

So what strategy SHOULD be driving Alite’s innovation?

It’s not about bringing more people into the world of Alite.

It’s about bringing Alite into the world of more people.

This is the experience their demographic wants.Why not design for that?

Competitive AnalysisNa

ture

/Won

der

Urba

n/Co

mfo

rt

Utilitarian/Accomplishment

Fun/Freedom

CONCLUSION > Alite has the potential to be huge in the Bay Area and throughout the nation, but currently has a poor product market fit

> Most 20s/30s city dwellers view “the outdoors” as urban nature — not campsites and hiking trails; they are willing to spend money on products that enhance their existing lifestyle (chairs, bags, blankets) not those that require a new one (tents, sleeping bags)

> There are many unmet needs in the experience of urban nature; with a slight pivot, Alite can be THE brand that facilitates that desired experience

> Consider discontinuing serious camping gear (tents, sleeping bags, etc.) or segmenting it into Alite’s sister brand, Boreas

> Promote a line of products called “Designed for Dolores,” for example:

RECOMMENDATIONS

- Bag that unfolds into a blanket - Park kit backpack — frisbee slot, small cooler compartment - Waterproof, durable blanket with cup holders - Two-person bench chair / love seat

> Continue market research to discover how Alite can best enable the “urban outdoor” experience of comfort and freedom that customers want