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TRANSCRIPT
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Vendetta – “to fight, to quarrel.” Vendetta Helmets is fighting back in response to
the epidemic of long-term head injuries that has recently embodied the nature of football.
A study done by the National Center for Injury Prevention found that “47% of high
school football players say they suffer a concussion each season, with 35% of those
reporting multiple concussions in a single season” (Shaw 2011). One can assume these
numbers are greater at the collegiate and professional levels, where the blows to the head
come at much greater impact. Our helmets, using padding that was inspired by memory
foam, will mold to a players head and provide superior protection for a player in a
football game. Vendetta Helmets will also feature a one-of-a-kind cooling system that is
integrated into our foam padding to provide extra comfort during those brutally hot days.
Vendetta Helmet’s patented technology has never been seen before and is by far and
away the best choice of helmet for any football player at any level of play.
Consumer/Market Analysis
The sporting industry is a constantly growing and helmet safety is one of the
hottest topics in sports today. The sport of football has quickly become America’s most
popular sport with an estimated 17 million kids playing organized football in youth
leagues all the way through the high school level.
The protective sporting equipment industry is booming in today’s economy, last
year the industry was estimated to be a $738 Million dollar industry (Protective Sports
Equipment Manufacturing in the US: Market Research Report). This year the numbers
are increase due to the sudden concern of concussions throughout the sport. As of right
now, the market is completely owned and dominated by two companies: Riddell and
Schutt Sports. Collectively, Riddell and Schutt Sports own nearly 95% of the market
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while the other 5% of the market is shared by Xenith (a newcomer to the industry) and
Rawlings (mainly known for baseball and clothing, made a return to the market after
taking a 20 year hiatus from the helmet industry). Riddell is easily the biggest name in
the helmet industry as they are the official outfitter of the National Football League and
dominates on the college level as well. After years of dominating the market, it is quite
surprising to see that from the numbers from 2001 Riddell only owns approximately 37%
of the market. With between 7-8 million kids playing organized youth football, Schutt
sports decided to take a different route in making their name in the market by making
youth leagues their target market. Targeting the youth market resulted in Schutt Sports
owning nearly 57% of the market in 2011. As a new company entering the market, our
plan is to go directly after the youth market just as Schutt Sports has done in the past. As
soon as we get our company cemented within the youth helmet market, we will then have
a good enough reputation to finally branch out and hit the College and Professional target
market.
Due to our product being a very specific or a “Specialty” product, the Market size
will obviously be somewhat limited. Our goal within the first year of full production is to
make a splash within the market and take over between 5-10 percent of the market. We
are fully aware that this may be a difficult goal to achieve but we strongly believe that our
product is good enough and unique enough to stand up against the titans of the industry
on day one. Within 5 years we plan to own at least 25% of the market, making us one of
the biggest names in the helmet industry. Within 10 years Vendetta Helmets will be the
biggest name on the market and the current big names like Schutt and Riddell will look
up to us.
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Our market potential is through the roof. We believe that the product that we are
putting on the market is going to satisfy all of the consumer needs (safety, style,
reliability, technology). We know exactly who our potential customers are going to be
and there are potentially 17 million customers out there to go get. Competition is strong
but we believe our product is and will continue to be far superior to the competition. As
the industry grows, so will we, to become the best you must be willing to evolve and as
technology and the industry changes we will be ahead of all of the changes that will
come. We have hired an elite group of engineers to help us stay ahead of any trends that
may come our way. With all of the factors listed above, we truly believe the Vendetta's
Market Potential is tremendous.
Consumer behavior is exactly what is going to make us successful in this industry.
Over the last 5 years, the media’s concern on concussions and head trauma has been
intense. There has been a much larger focus on safety especially on the youth level.
Putting out an elite product when it comes to safety in this day in age will change the
industry as we know it. The Vendetta Helmet offers a level of safety that has yet to be
seen in the industry and that is why we think the product will be so successful.
Consumers will be our backbone and their concerns are what will drive us.
Competitors
A brief overlook of our main competitors:
Riddell: Started in 1939 by John Tate Riddell when he invented the first plastic
suspension helmet (Hillard, 2012). Ever since that day Riddell has been the biggest name
in the football helmet industry. You can see the Riddell helmet just about everywhere.
Riddell is the official helmet of the NFL and dominates the College level as well.
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Schutt Sports: Founded in 1918, Schutt sports made their first splash in the football
industry when they invented their version of the helmet faceguard in 1935. (Schutt
Sports, 2012) Due to their cheaper prices, Schutt Sports has become the leader in the
youth market owning over 57% of the market.
Xenith: Breaking into the industry in 2006, Xenith prides themselves on their innovative
thermoplastic shock absorbers. Xenith has become a respectable name in the helmet
industry. (Xenith.com, 2012)
Rawlings: After taking a 20 year hiatus of producing helmets, Rawlings is back in the
market with their NRG Helmet.
SWOT Analysis
Strengths: The biggest strength for our company/product is the safety and reliability that
our product provides to the consumer. Our innovative memory foam will provide safety
and comfort that hasn’t been seen anywhere else around the market. Our technologically
advanced cooling system will provide a feature that has yet to be seen and will be a must
have feature to any customer. Word-of-Mouth will also be one of our big strengths once
the players put on the helmet get on that field, realizing how great of a product we have
produced. Parents will also be a strength because they all talk to each other and word
about the product will travel.
Weaknesses: Our biggest weakness will be competing within a market in which two
companies own 95% of the market. We know it’s going to an uphill battle but we believe
that our product is good enough to take away a huge chunk of that Market. Another
weakness would be that since our helmet is a specialty item and we will have to figure
out new and creative ways to advertise to that small buyer market.
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Opportunities: Once we are able to get our company to certain level of comfort we are
planning on branching our brand out and introducing shoulder pads and clothing to our
consumers. We cannot just rely on our helmets to carry us. We must be able to introduce
new and innovative products to keep our company interesting and profitable. Another
opportunity is going to be international marketing. With American Football becoming
more and more popular overseas, it will allow us to take our brand to an international
level.
Threats: Our biggest threats are obviously going to be the titans within the industry
(Riddell and Schutt Sports). Another threat is going to be the media's constant scrutiny of
concussion prevention. With a larger focus on what we produce and how it holds up, we
will have to stay on top of our game. Another threat is going to be the constant
technology advancements throughout the industry. It seems like every few years a
company is developing new and innovative helmet components.
Product and Marketing Strategies
Our helmet is designed to increase safety and decrease injuries that occur during
normal participation in the game of football. One of the most influential differences in
this helmet is the fact that it has padding, much like memory foam, rather than air
pouches that most of the helmets on the market have. These air pouches tend to deflate,
therefore causing safety problems. Once the helmet has been fitted appropriately to the
player, their head will be surrounded by a much more effective source of protection in
comparison to those used in the past.
In addition to the memory foam, another important aspect about our helmet is that
there will be a cooling gel within the memory foam that is activated when heated up.
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This will keep the player much cooler during the game and ensure that they will not
overheat. By having the cooling gel integrated in our new age memory foam, Vendetta
Helmets has created the safest helmet yet.
When designing this product, we were thinking of something that could take over
the market because it has something that no other product in the industry has. The
technology that is used to make Vendetta Helmets will help create its own niche in the
industry that could make us successful. In doing so, all the revenue generated will not
come in by simply putting the product on the shelves and hoping people will buy it. We
have outlined certain target markets, and it’s competitive advantage along with how we
are going to position the helmet.
Vendetta Helmets will be positioned in the market in a way that will be more
expensive but will also make the buyers more willing to purchase due to its safety. Our
helmet will be priced at a more expensive rate because of the advanced technology that
will be incorporated within it. Due to the advanced technology it will make buyers more
willing to purchase because of the overwhelming factor or safety. Spending more money
on this helmet is good for the consumer in the long run because it will reduce or eliminate
possible medical costs in the future.
By using certain marketing strategies, Vendetta Helmets will be targeting specific
markets like families who have children who play football recreationally. In addition, we
will be focusing heavily on teams and leagues to create a very efficient marketing plan.
In order for our company to use the hybrid approach of push and pull strategies, we will
plan on selling the helmets to the various markets mentioned. When selling the helmets
to individuals, we will be targeting student athletes and younger children who play
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recreational football. By doing this the company will be using push strategies as the
helmets would be purchased in retail stores where employees would attempt to sell the
helmet to the buyer.
Furthermore, by incorporating the pull strategy, Vendetta Helmets will only create
helmets on a need basis when teams would order the helmets in bulk. That way the cost
would be much lower because they would not be going through a retail store and the team
can get the helmets right from the manufacturer. A goal of the website will be to attract
more teams to buy directly from the company and get more teams to buy our helmets for
all of their players. Another way that our company will create large buyers is by setting
up presentations to various football organizations and investors which in turn can create
large amounts of sales. We would only be manufacturing products on an as need basis.
Price
We will use competitive and premium pricing strategies to succeed in the football
helmet market. The football helmet industry is dominated by two companies, Riddell and
Schutt, which account for 90% of the market share (Lazich 2009). Our goal is to use a
premium pricing strategy relative to the other companies that have 10% of the market,
and use a competitive pricing strategy relative to Riddell and Schutt. Therefore, we will
distinguish our product from the lower quality products, but also challenge top products
by offering our product at a lower price. Our competitors’ prices are as follows:
Name PriceRiddell 360 $376.99Schutt Vengeance DCT
$255.00
Xenith X2 $235.00Rawlings NRG Quantum Plus
$260.00
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(“Riddell 360 Helmet,” “NRG Quantum Plus,” “Xenith X2 Varsity,” and “Vengeance DCT”)
More specifically, considering our competitors’ pricing in the above table, we
plan to price our Vendetta helmet at $317.95. This price will show consumers that our
helmet is high-quality. However, at the same time, $317.95 makes our helmet
competitive with Riddell and Schutt’s helmets and gives consumers a third option to
choose from when looking in the $250-$400 price range. Our price of $317.95 implies
better quality than Schutt’s helmet and more affordability than Riddell’s helmet.
In terms of cost, we strive to keep costs low, and thus be able offer our helmet at
competitive prices relative to our top competitors. It costs us $196.00 to make the
helmet; we will sell it directly to the customer at $317.95 ($121.95 profit per unit). Since
we will be selling large quantities to retailer and whole-sellers as well, we will offer the
product at a discounted price to them at $249.99 and set the suggested retail price at
$317.95 with a $10.00 variance (allow the retailer/whole-seller to sell it at $327.95 or
$307.95 to stay competitive). The whole goal is to make money, by setting a competitive
price-point and keeping costs low we should be profitable in no time.
Furthermore, we will offer discounts throughout the year. For example, football
season is in the fall and we plan to offer online discounts in the summer right before the
season starts to increase sales. Moreover, we will also offer major yearly sales to our
retailers and wholesalers in order to ensure bulk deals. All of our discounts will be
designed to pry consumers away from our competitors and gain brand loyalty.
Distribution
Vendetta Helmets will target U.S. consumers and base its distribution centers in
Florida, Texas, California, and Ohio. Distribution centers will be located in the
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previously listed states because high school football is extremely popular and serious in
these states (Jackson, “Talent Pool”). Thus, Vendetta Helmets will ensure that these
states will have priority in our distribution. Furthermore, the intensity of distribution will
vary seasonally. With football season beginning in the fall, distribution will increase
during the summer when players are buying equipment and continue into the fall.
Moreover, Vendetta Helmets will selectively distribute its helmets to traditional store-
based retailers, such as Dick’s Sporting Goods and Sports Authority. Vendetta Helmets
will sell its helmets at all Dick’s Sporting Goods and Sports Authority store locations, but
more heavily stock the stores in Florida, Texas, California, Ohio, or adjacent states
because of reasons listed above.
In addition to selling helmets at traditional store-based retailers, Vendetta Helmets
will also have a website on which it will sell its helmets, including customizable ones.
Consumers will have the option to change the colors, face masks, chin straps, and visors
of their helmets. E-Commerce will attract more customers for Vendetta Helmets because
it offers convenience and customization. For example, certain store locations may not
have the exact product that a customer wants. E-Commerce ensures that a customer gets
exactly what he/she wants through the website’s customization tools. Our website can be
found at: http://vendettahelmets.webs.com/
In addition to selling single helmets to individuals at retail stores, Vendetta
Helmets will sell helmets directly to NFL and college football teams. Whereas middle-
school or high-school players may want to buy their own helmets from a retailer, NFL
and college football teams buy their helmets directly from the manufacturer in bulk
purchases. For example, Riddell is the official helmet provider of the NFL (“NFL
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Renews Contract with Riddell Sports”). Therefore, Vendetta Helmets will work to
complete contracts with the NFL and college football teams to sell its helmets.
Diagram of channels of distributionManufacturer
Distribution Center
Pro or Collegiate teams Retail store Website
Consumer
Vendetta Helmets’ channel structure is direct when it sells its products to NFL or college
teams, as the helmets are made by the manufacturer and shipped directly to the teams.
On the other hand, Vendetta Helmets’ channel structure is indirect when a consumer buys
a helmet. In that case, the consumer buys the helmet from the retailer. That helmet was
made by the manufacture, sent to the distribution center, and sent to the retailer before the
consumer could purchase it. Lastly, when a consumer purchases a helmet over the
internet, the structure is also indirect. The manufacturer has to make product, send it to
the distribution center, and ship it to the consumer.
Finally, Vendetta Helmets will use a multichannel distribution strategy to
broaden its market. Consumers will be able to buy helmets from retail stores, over the
internet, and directly from the manufacturer. A multichannel distribution strategy allows
Vendetta Helmets to meet a variety of consumers’ needs. First, the stores allow
consumers to physically interact with the product before they purchase it. Secondly, NFL
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and college teams can buy the product directly from the manufacturer. And, thirdly,
consumers can customize their helmets by using Vendetta Helmet’s website.
Promotion
One of the most important parts of promoting our product will be to get it in the
hands of the athletes that will be using it. We will accomplish this through test and trial
sessions in which the athletes will use our helmets and give us feedback, which will be
crucial to our promotional development. By partnering with athletes, we will be able to
develop testimonials. Our goal is to get recognized athletes to train with our products so
that the followers of those recognized athletes will be able to identify our product with
that specific athlete. Furthermore, by getting recognized athletes to use our products, the
influence that those athletes have will be a driving force for further promoting Vendetta
Helmets.
In order to partner up with athletes, our company will start by going to the public
and private school systems of both collegiate and secondary education systems.
Specifically, we will get our helmets into the athletic programs of these schools that are
not under existing contracts with other helmet companies. By getting into these programs
we not only give our product a platform to be used in, but we also give our product the
chance for public recognition. Secondary and Collegiate level sports are all covered by
the public media and as a result, our product will receive attention from many different
media channels.
Another way that we will promote our product is by emphasizing the unique and
patented features of our helmets. Recently, hundreds of cases have been arising related to
brain trauma and injury caused by impact during football games. In certain cases, these
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brain injuries have been directly related to poor helmet protection. Considering our helmet,
it provides a degree of safety that has never before been available to football players. With
the specific safety features that our helmets offer, like the patented cooling system and
memory foam like padding, we will be able to advertise and promote ourselves unlike any
other helmet provider. We can seek recognition and promotion from doctors and safety
agencies that our helmet protects players better than our competitors. In addition, we can
appeal to the school systems. By promoting our product to the parents of the younger
athletes, we have an excellent chance to gain more support and market share for our product.
This aspect of our promotional efforts will greatly benefit our recognition in not only the
athletic world but also in the general public.
Our company will also promote ourselves through mainstream media. By using
the testimonials of trial athletes, as well as the recognition from safety agencies, we will
be able to publicly promote our helmets with success. Being that we are a new company
entering a big market, we face significant obstacles to overcome. However, since
Vendetta Helmets is able to promote ourselves from a platform of safety that no other
company can duplicate, Vendetta Helmets will immediately draw the attention of the
greater public who trust the word of their fellow athletes and safety agencies.
In addition to the mainstream media that our product is already going to receive
from our product placement in schools and university athletic programs, we will also
advertise our product in the football venues. By running commercials and live interviews
during televised events, millions of people will become aware of our brand. Additionally,
since the athletic world is currently engulfed in taking greater safety measures, we also
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have the chance to get in magazine articles. We will pursue Sports illustrated, ESPN, as
well as other written sources to further promote ourselves.
Lastly, as stated in the Price section, our profit per unit will be about $122, but
Vendetta Helmets will donate large sums of their revenue to further our research and to
broaden our technological capabilities. Social responsibility should gear the majority
towards choosing our helmets. Our message is simple and effective, as our company is
“Preserving Memory, One Brain Cell at a Time.”
Financial Component
Do projections of sales and breakeven points make sense given the marketing
strategy and marketing operations? The protective sporting equipment industry is a $738
million dollar industry (Protective Sports Equipment Manufacturing in the US: Market
Research Report). Over the last few years the industry has skyrocketed due to the sudden
media and global concern of football concussions. Currently, the future of the protective
sporting equipment industry is almost limitless. The sport of football is played in almost
every city and town across the United States and we have even seen the game spreading
globally in recent years. Every level of the sport requires the purchase of helmet, whether
it is an individual purchase or a bulk purchase for an entire team or league.
As a new company, we will have start-up costs that existing companies no longer
have to deal with. We foresee to be operating at a loss until we are able to position and
promote Vendetta Helmets accordingly. Moreover, since our product’s technology is
unique and patented, we can afford to charge for the quality of our product. A Vendetta
Helmet has a listed retail price of $317.95. Our helmets are priced competitively to our
two top competitors. At this price, we believe that not only will the existing market be
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willing to try our product out, but also we believe that the market will be willing to invest
in our promise as the safest helmet available. A consumer is willing to pay for safety but
only to a certain extent. Once we have grabbed the attention of the athletic arena and
current market, we will be able to raise our prices to allow for a larger profit margin and
expansion.
At $317.95 per unit, we believe that our profit margins will be high enough to
continue to reinvest and develop even safer products for our athletes. Furthermore, with
our profit margins allowing us, we plan to expand our product into other contact sports
such as lacrosse and boxing. Since our technology is patented this will not be difficult so
long as our profits allow us to continue to pursue research and development. We plan to
continue to grow our brand and take more of the sporting equipment market share. In
addition, we could potentially raise prices further once the public has realized the full
appreciation that Vendetta Helmets brings to the world of contact sports.
Conclusion
With strong combinations in company name, logo, and slogan, Vendetta Helmets
will surely be able to deliver our messages effectively and motivate our potential clients.
Our helmets will penetrate and overcome the market quicker than any other sports
equipment has been able to do. Our product promises safety and satisfaction as well as
delivers. As soon as we are able to get our product into the hands of fellow athletes, our
clients will quickly realize there is no alternative to a Vendetta Helmet. Vendetta Helmets
are developed with a technology that none of our competitors can match, which is the
main reason why we will find major success in the sporting industry.
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Works Cited
Ed. Lazich, Robert S. and Virgil L. Burton III. “Football Helmet Market, 2009.” Market Share Reporter.2013 ed. Detroit: Gale Group, 2013. 822 pp. 2 vols. Gale Directory Library. Gale. Towson University. Web. Nov. 30, 2012.
Hillard, N. (n.d.). Riddell Athletics: History. Riddell Athletics: History. Retrieved December 03, 2012, from http://sitemaker.umich.edu/sm101003b/history
Jackson, Dallas. “Talent Pool: Where the D1 Signees Come From.” RivalsHigh.com. Feb. 7, 2011. Web. Nov. 21, 2012
“NFL Renews Contract with Riddell Sports.” LicenseMag.com. Aug. 17, 2009. Web. Nov. 21, 2012.
“NRG Quantum Plus.” Rawlingsfootball.com. N.D. Web. Dec. 3, 2012."Protective Sports Equipment Manufacturing in the US: Market Research Report." Protective Sports Equipment Manufacturing in the US Market Research. IBISWorld, July 2012. Web. 15 Oct. 2012. <http://www.ibisworld.com/industry/protective-sports-equipment-manufacturing.html>.
“Riddell 360 Helmet.” Riddell.com. N.D. Web. Dec. 3, 2012.
Shaw, Gina. "WebMD." WebMD. (2011): n. page. Web. 3 Dec. 2012. <http://www.webmd.com/fitness-exercise/features/football-player-concussions>.“Vengeance DCT.” Schuttsports.com. N.D. Web. Dec. 3, 2012Schutt Sports. (n.d.). Schutt Sports- History Timeline. Schutt Sports- History Timeline. Retrieved from http://www.schuttsports.com/aspx/general/historytimeline.aspx
“Xenith X2 Varsity.” Xenith.com. N.D. Web. Dec. 3, 2012.