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RUNNINGHEAD: PACIFIC DIVING ACADEMY MARKETING PLAN

Pacific Diving Academy Marketing Plan

Scott Shelley

DeVry University

Professor Elliot Masocha

September 29th 2013

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Pacific Diving Academy

Pacific Diving Academy

Table of Contents
Executive Summary 4
Company Description 4
Strategic Focus and Plan 5
-Mission Statement 5

-Goals

-Core Competency and Sustainable Competitive Advantage 6

Situation Analysis 7
-SWOT 7
-Industry Analysis 8
-Customer Analysis 8

-Company Analysis 9

-Competitor Analysis 9
Market Product Focus 10
-Marketing and Product Objectives 10
-Target Market 11
-Points of Difference 11
-Positioning 12
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Pacific Diving Academy

Table of Contents Continued

Marketing Program 12
-Product Strategy 12

-Price Strategy 12
-Promotion Strategy 12
-Distribution 12
Financial Data and Projections 13
-Past Sales Revenue 13
-Five Year Projections 13
Organizational Structure 14
Implementation 15
Evaluation and Control 15
Appendix A 17
Bibliography 19
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Pacific Diving Academy

Executive Summary

Pacific Diving Academy is proud to introduce itself to the world of professional diver

education. With the combined experience of the founding partners totaling 55 years of diving,

PDA will be offering professional diver education programs in a college format rather than a

piece by piece recreational only format. PDA’s target audience are young divers age 18-26 who

are looking for a career in recreational diving, and 50-60 year old divers looking for a second

career or income..

PDA will offer three main programs of study, Divemaster, Public Safety Diver, and

Instructor. Each program of study results in internationally recognized certification (s). With

6200 dive centers and resorts in 183 countries around the world the increasing need for dive

professional dramatically (PADI, 2013). PDA is prepared to meet that need. As outlined within

this document PDA is uniquely positioned to provide the diving industry with high quality

instructors capable of operating in a variety of conditions and geographic locations.

Company Description

PDA is formed around its founding partners, each with an extensive body of work in

professional diver education. Senior partner and Course Director Scott Shelley has an incredible

success rate in producing professional divers with a 100% employment rate for candidates

graduating his programs, and more than 30 years in professional diving. Partners Jay Reinhart

and Andrew Gardner combine previous careers in purchasing and finance with more than 10

years each training professional divers. Together the PDA team has trained more than 300

professionals with an additional 50 candidates in various stages of training at the time of this

writing.
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Pacific Diving Academy

Strategic Focus and Planning

Mission Statement:
“To train the finest professional dive educators in the world.”

Company Goals:

Objective Action Time Frame Desired Result

Develop a new Web presence and Within the first 180 To complete 5% more
market. targeted print media. days of operation. programs than were
conducted prior to
2013 independently.*
Develop profitable Create professional Within the first 180 Create a business
relationships with information packages days of operation. relationship where
dive centers and for dive centers and owners and operators
resorts in Hawaii. resorts seeking a in Hawaii can make
source for competent one call to PDA for
staff. their staffing needs.
Develop profitable Create professional Within the second Create a business
relationships with information packages 180 days of relationship where
dive centers and for dive centers and operations. owners and operators
resorts in Grand resorts seeking a in Cayman can make
Cayman. source for competent one call to PDA for
staff. their staffing needs
Objective Action Time Frame Desired Result
Attend at least two Place a multi-media Within two years. To further expose the
diving trade shows. equipped booth in PDA brand to an
Long Beach Ca. and each trade show expanded market on a
DEMA. Orlando Fl. complete with virtual national scale.
classroom
Sponsor at least 3 Work in conjunction Annual after the first Expose the general
Beach restoration with PADI Project year. (365 days) public to PDA’s
projects in Ventura AWARE* to remove commitment to a
County Ca. contaminants from cleaner environment.
local beaches.
Donate one complete Package one PDA In progress Ensure that we as a
program of education program of study company dedicated to
to Wounded Warrior from Basic- education never
Project per year. Instructor, acquire the forget why we can do
necessary what we do.
tax ID numbers.
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Pacific Diving Academy

Competencies:

Pacific Diving Academy possesses key elements which are unparalleled within the diving

industry. Specifically they are:

 Full time PADI Course Director. PADI Course Directors are the only individuals

authorized to teach the Instructor Development Course (IDC) there are 900 PADI Course

Directors worldwide.

 PDA is the only dive school offering a complete program of study online with

e-Learning.

 PDA is completely self-contained with multi-media classrooms, onsite training pool and

access to open ocean 35ft/10m from the front door.

Competitive Advantages:

Pacific Diving Academy enjoys several advantages over conventional diving centers and

resorts. Foremost among these are:

 PDA does not sell diving equipment and therefore remains unencumbered by a large

retail staff, expensive vendor commitments and spaces within the facility dedicated to

display rather than education.

 PDA does not own a diving vessel. PDA contracts with three local operators at a

discounted rate in exchange for limited professional services. As such we avoid the

expense associated with commercial boat ownership.

 Our ownership is our teaching staff. Each has lived and worked overseas for a minimum

of 15 years, far outpacing the experience of local operators.

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Pacific Diving Academy
 Each partner has a unique skill that alleviates the need for outside contracting, such as tax

services, budgets, and buying and government relations.

Situation Analysis
Moving forward in 2013-2014 with an aggressive two pronged educational push to attract

student divers, PDA has identified several core strengths among which is our compact size and

diverse method of information delivery, e-Learning, Live Presentation or both in combination.

We feel strongly moving ahead that we will effectively counter known threats, and are confident

in our flexibility to take advantage of emerging opportunities

S.W.O.T. Analysis: Figure 1

Strengths
 Compact size with low overhead.
 Elite educational team.
 Superior facility and location.
 Financially stable.
 Associated with the top training agency
in the world, PADI.
 24/7 Access for student divers through
e-Learning portal.
Weaknesses
 Possibility for duplication by large
chain.
 Expansion could be challenging to
limited available space at current
location.
 Distance from International
Airport/transportation issues for
international students.

Opportunities
 Continued high unemployment rate
increases the number of people seeking
professional training.
 Boomers are retiring and are looking
for a second less stressful career.
 Navy Base Ventura offers service
members reimbursement for outside
professional training.
Threats
 Potential environmental disaster due to
proximity of oil rig operations in the
Santa Barbara Channel.
 A worsening economy locally may
affect availability of contracted dive
vessels for open ocean training.
 Increase in local and state regulations.
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Pacific Diving Academy

Industry Analysis:

Scuba diving as an industry has enjoyed an upswing in both numbers of people becoming

certified at the entry level, and those expressing interest in continuing education programs in

most dive centers and resorts. Primary research of student record file folders is listing

professional level courses as those of greatest interest. The interest in Instructor level and Public

Safety is increased by 50% over previous years alone.

Customer Analysis:

Southern California has one of the highest per capita populations of scuba divers in the

nation. Specifically the city of Ventura and its surrounding towns have a long maritime history.

The median income for the region is between shown in Figure (2) Figure 2

("Ventura, California (CA) profile: population, maps, real estate, averages, homes, statistics, relocation, travel, jobs,
hospitals, schools, crime, moving, houses, news", n.d.)

As indicated above, incomes are on the rise in a region rich with prospective professional dive

students. Household incomes are up just over 13k for the region, in a state with a rough

economy making Ventura a prime market for professional education offerings.

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Pacific Diving Academy

Company Analysis:
Pacific Diving Academy is designed as a privately owned and operated professional diving

academy specializing in professional education as sanctioned through the Professional

Association of Diving Instructors, herein referred to as PADI. Pacific Diving Academy’s

concentration is education with the intent to produce a variety of professional divers at the entry

level. Do date no such entity exists in the West Coast (U.S.) market. The Ownership is

comprised of three partners with expertise in diver education, operations and procurement, and

finance.

Pacific Diving Academy will be a Limited Liability Corporation with financing provided by

direct investment from the owner (named in Company Structure), who will control 75% of the

company, with the remaining 25% equally distributed between two partners, 14.5% each

respectively. The principal investment on the part of the two partners (named in Company

Structure) is to be in the form of labor and expertise.

As a Five Star Instructor Development Center (IDC) associated with the Professional

Association of Diving Instructors (PADI) PDA will work closely with PADI’s International

Retailer and Resort Association (IRRA) to stay on the cutting edge of the diving market.

Competitor Analysis:

PDA does not currently have a competitor in the current market. PDA is unique in its

offering of college formatted programs specific to professional diving. There are two diving

centers offering a mix of courses ranging from basic to advanced diver training, however none

possess a staff made up entirely of Instructor Trainers, and none possess the ability to train

professional divers on a daily basis. None can match us in experience or offerings.

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Pacific Diving Academy

Product Market Focus

This section describes the marketing and product development for PDA and also provides

information concerning the marketing and product objectives, market-product grid, target

markets, points of difference, and positioning for PDA.

Marketing and Product Objectives:

PDA’s primary goal is to promote professional diving programs ranging from professional

dive guides and instructors, along with the addition of offering Public Safety Diving to local

military entities, law enforcement and fire rescue. Initial marketing will be directed toward

existing markets (students past and present) and expand outward to include local joint operations

base Ventura (USN) and Ventura County Fire Rescue. Web advertising and joint advertising

with PADI IRRA will take PDA internationally.

PDA’s products are unique within the industry. Our goal is to offer semester inspired

schedules designed to fit the needs of busy student divers. To facilitate this we will use a

combination of online learning platforms and live presentation. Our dive lab will be open to all

students a minimum of 12 hours per day Monday-Sunday.

PDA will explore new markets, (within 365 days) with programs directed toward high school

level students, and promote these programs at job fairs and in conjunction with our already

successful diving seminars offered to local schools. Figure 3 page 11 demonstrates our Market

Segment.
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Pacific Diving Academy

Target Market: Figure 3

As shown above, we will market more programs of study to the military at the Divemaster

and Instructor levels. Surveys of current military personnel indicate that they are more interested

in teaching recreational programs as a second career, than the potential hazards associated with

Public Safety Diving. Additionally younger candidates, right out of high school will make up

the bulk of Public Safety Diver programs.

Points of Difference:

We have unique capabilities that separate PDA from similar business ventures:

 We are located in a beautiful and functional harbor with access to a top ten diving

destination.

 Our school is self-contained, all components of education occur in one location.

 We are an internationally experienced multilingual team of educators able to offer

programs in Spanish, German, Arabic, Hebrew and French.

 Students have direct access to manufacturers for equipment needs.

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Pacific Diving Academy

Positioning:

Pacific Diving Academy is the Harvard Business School of professional diving. As such we

are maneuvering around large recreational chain competitors within the diving industry and

directly toward a professionally focused employment driven customer. We will emphasize the

Profession of diving, not the recreation.

Marketing Program

Our marketing program is simple, and depicted in figure 4 below. We have the finest facility

and staff in the industry, the flexibility to deliver programs with recreational or

commercial/military applications.

Figure 4 PRODUCT STRATEGY

Product Offer a program of study appealing to professionally minded clients.

By eliminating costly inventories of retail products and contracting

Price dive vessels as needed, PDA is able to offer high value programs
below that which our nearest competitor is capable. (Below $5k)

PDA programs will appear in the Undersea Journal published by PADI

Promotion to 183 countries around the world in over 15 different languages, along
with a vigorous web presence and trade shows.

PDA will employ our carefully cultivated contacts both in the

Placement continental United States and abroad to distribute the name and the
product (our students) to discerning dive operators seeking eh very
best Divemasters, Instructors and Public Safety Divers.
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Pacific Diving Academy

Financial Data and Projections

PDA’s financials are based of the combined student numbers from the controlling partners

over the period beginning 01-JAN-2012 and ending 01-JAN-2013. Because PDA is privately

funded there are no current outstanding loans to banks. Our breakeven point is described

calculated as shown along with key financial data:

Figure 5

Figure 6 Gross sales projections 2013-2017

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Pacific Diving Academy

Organization

PDA is specifically designed as a small company with a big punch. Simplicity and cohesive

decision making are paramount to our success. The chart below describes our company

organization as of September 2013.

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Pacific Diving Academy

PDA does occasionally contract to control any overflow of student divers, it is anticipated that

two full time positions will be added to PDA as Senior Instructors answering at first directly to

the CEO, and after probation to the Operations Manager.

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Implementation
Marketing 360 is our initial implementation plan (see appendix B) for which all future

markets will be exploited. Table 6 below demonstrates the physical time table goals for 2013-

2017.

Market 2013 2014 2015 2016 2017

California 9.15.13 –
Military – College-Boomers-High 12.30.13
School 01.01.14-
Hawaii 03.30.14

Oahu - Maui
04.30.15-
British West Indies 07.30.15
Grand Cayman – Little Cayman - Brac
01.30.16 –
Egypt 03.28.16
South Sinai
10.30.16 –
Israel 01.30.17
Tel Aviv - Eilat

Each start date and end date are chosen based on seasons in each region.

Evaluation and Control

PDA is not nor will it ever be a “What if” company, if we were we’d be out of business

before we even get started. Fortunately we are a group of seasoned dive educators well versed in

our field. This does not mean we will ignore possible bumps in the road. There are however

specific counter measures.

Possible Deviations:
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Pacific Diving Academy
1. There is always the possibility that the desire and or need for professional diver training

will wane with economic swings.

2. There is the possibility of injury or death, to both student and Instructor Staff.

3. There is always the possibility that the international markets won’t cooperate with an

American company.

Possible Counter Measures to deviations:

1. Our programs all contain components of simple recreational diver courses designed for

resorts and dive shops. We have the capability to shift gears in an unsteady professional

market and create a new recreational market at will.

2. We are partnered with Vicencia & Buckley the most comprehensive professional liability

company on the planet and as a PADI Five Star Instructor Development Center is under

the legal protection of the world’s largest dive training agency.

3. We have taken great pains to speak the languages in the regions we plan to serve and also

understand their cultures and values. We feel strongly that our commitment to our future

overseas partners will identify with this effort. In some regions we are simply

maintaining previously established partnerships.

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Pacific Diving Academy

APPENDIX A

About us:

Founding member of the PDA Educational Team and

C.E.O Scott Shelley has been diving since age 10. Today at
45 he pours over thirty years of diving experience into
every program.

It is nearly impossible to imagine anywhere on the planet

he hasn’t trained a diver, or run a dive school. From
Europe and the Middle East to North Africa and the
Caribbean he has done it all.

Company CFO and Master Instructor Andrew Gardner

has over 15 years’ experience as a dive educator and a
degree from Harvard to boot. As CFO he is responsible
for all financial aspects of our company, a task which he
takes to heart and to the water every chance he gets.

Pictured left Andrew personally tests each new

innovation before the company invests in new products
or markets. Here he is testing the newly released
Military version of the Mk5 Re-Breather.
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Pacific Diving Academy

A waterman his entire 37 year life, a former police

officer and U.S.C.G. captain, Jay Reinhart is in charge of
Operations. He somehow manages to keep all the
contractors, Boat Captains, suppliers and student divers
flowing evenly.

Jay is a vital member of the PDA Team; he has an

unstoppable attitude, infectious smile, and can create
organization from chaos.

Advertising-

Sample of PDA Electronic Flyer

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PDA uses Constant Contact styled advertising once per month. We do not discount nor do we

run specials on educational programs. Additionally as PADI Members we have legal permission

to use any logo, text or term generated by PADI provided it is unaltered. (Richardson, 2013)

Bibliography

Kerin, R. A., Hartley, S. W., & Rudelius, W. (2013). Marketing. New York, NY: McGraw-

Hill/Irwin.

Divemaster Courses - Lessons, Training, Tips & Professional Careers - PADI Scuba Diving

Training Organization. (n.d.). Retrieved September 22, 2013, from

http://www.padi.com/scuba/padi-courses/professional-courses/view-all-professional-

courses/divemaster/default.aspx

Richardson, D. (2013) Course director manual, Rancho Santa Margarita CA; PADI Worldwide/

Diving Science and Technology.

Ventura, California (CA) profile: population, maps, real estate, averages, homes, statistics,

relocation, travel, jobs, hospitals, schools, crime, moving, houses, news. (n.d.).

Retrieved September 19, 2013, from http://www.city-data.com/city/Ventura-California.html