1. EXERSWIM STRATEGIC ANALYSIS & MARKETING PLAN Prepared for-Master Spas Presented by: Adam Fox Nick Harter Abi Peterman Julie Graber Brandi Grimm Curtis Meyer Pete Bushnell

2. 2 AGENDA  Strategic analysis Problems Causes Alternative solutions Recommendation  Marketing plan Market segmentation Primary marketing plan Secondary marketing plan

3. 3 PROBLEMS TO ADDRESS  Exerswim is not a core competency product  Limited sales  No detailed plan  Difficulty launching new products  No sales force  Different customer demographic  What is the next step?

4. 4 CAUSES  Primary cause Company is inexperienced in launching new products outside of their current market segment  Contributing factors Lack of product launch plan Management style

5. 5 Management Organization Strategy Resources INTERNAL FACTORS FOR SUCCESS

6. Rivalry Suppliers Buyers Potential Entrants Substitutes EXTERNAL FACTORS FOR SUCCESS

7. 7 Management OrganizationStrategy Resources Rivalry Suppliers Buyers Potential Entrants Substitutes ANALYSIS OF EXERSWIM POTENTIAL INTERNAL FACTORS EXTERNAL FACTORS  Intellectual property lease  Project delay  Drop product  Put full weight of Master Spas behind launching the Exerswim

8. 8 Product Portable, easy to install, battery operated Pricing $3995-dtc, $2895-dealer Ensure pricing remains the same whether bought dtc or through dealer Distribution (Place) Purchase through dealer Purchase direct from Master Spas Promotion No one knows it exists Not a pull product Target right market STRATEGY Management OrganizationStrategy Resources INTERNAL FACTORS

9. 9 MARKET SEGMENTATION Family fun -Lazy river -Games -BBQ fun -“Toys” for pool -Workout Competitive swimming -College / high school -Tri-athletes -Instructors -Coaches -Swim clubs Swimming enthusiasts -Lap swimming -Fitness focused -Wants latest workout equipment Rehab/medical -Geriatric care -Injury recovery -Weight loss

10. 10 MARKET SEGMENTATION Family fun -Lazy river -Games -BBQ fun -“Toys” for pool -Workout Competitive swimming -College / high school -Tri-athletes -Instructors -Coaches -Swim clubs Swimming enthusiasts -Lap swimming -Fitness focused -Wants latest workout equipment Rehab/medical -Geriatric care -Injury recovery -Weight loss

11. 11 MARKET SEGMENTATION Family fun -Lazy river -Games -BBQ fun -“Toys” for pool -Workout Competitive swimming -College / high school -Tri-athletes -Instructors -Coaches -Swim clubs Swimming enthusiasts -Lap swimming -Fitness focused -Wants latest workout equipment Rehab/medical -Geriatric care -Injury recovery -Weight loss

12. 12 MARKET SEGMENTATION Family fun -Lazy river -Games -BBQ fun -“Toys” for pool -Workout Competitive swimming -College / high school -Tri-athletes -Instructors -Coaches -Swim clubs Swimming enthusiasts -Lap swimming -Fitness focused -Wants latest workout equipment Rehab/medical -Geriatric care -Injury recovery -Weight loss

13. 13 Goals and Objectives  Professionals of the industry to use product  Flood the market with the Exerswim name PRIMARY MARKET: COMPETITIVE SWIMMING

14. 14 Promotion  Provide sponsorship to competitive events Booth at 10 events-$500 each Demo pools-$10,000 each Breakeven point-29 units  Sales staff visits coaches/instructors 3 sales reps on two year contract & 1 product manager-$500,000 Breakeven point-190 units  Spokesman for product Spokesman-$10,000 Breakeven point-4 units PRIMARY MARKET: COMPETITIVE SWIMMING

15. 15 Implementation  First year marketing expenses Sponsorship-$5,000 (10 EVENTS x $500) Internal staff-$500,000 (4 REPS x $125,000 salary, benefits, travel expenses) Commission-$119,850 (400 units x 7.5%) Demo pool-$20,000 (2 POOLS x $10,000) Spokesman-$10,000  Total-$654,850  Profit-$423,150 (off of internal sales reps alone) PRIMARY MARKET: COMPETITIVE SWIMMING

16. 16  Pool owners who desire benefits of lap swimming  Keep independent sales reps Work on commission (low initial investment) Sales contests Additional bonus for high volume sold  Marketing tools and literature focused on the swim enthusiast  Demo units at dealers Locator on master spas website SECONDARY MARKET: SWIM ENTHUSIAST

17. SUMMARY Management OrganizationStrategy Resources Rivalry Suppliers Buyers Potential Entrants Substitutes INTERNAL FACTORS EXTRERNAL FACTORS  Commit Time, money, resources  Execute Primary & secondary marketing strategies

18. QUESTIONS