ET3OO6 INNOVATION AND ENTERPRISECOMPUTER AIDED DESIGN OF SCUBA

DIVING AIR PRESSURE WARNING DEVICE

Marketing SectionBy

EISA KAMRANI

BSc. (Honours) Gomputer Aided Product DesignSchool of Engineering and Built Environment

University of WolverhamPton

Year:Module Leader:lnnovation and Enterprise undertaken during:Credit Rating:Mode of Attendance:

,,

2007/2008Mr. G. HudsonSemester 2 2008, t t

Full Time

Marketing Contents

TifleContentsList offiguresOverview

1.0 Market Analysis:1.1 Observations and need for the product

2.0 Backgrund Research:2.1 Existing prcducts2.2 Console dive gauges

Page No

2.2.'1 Aeris pressure gauge 32.2.2 Compact 2 9au9e console 42.2.3 Triple console 52.2.4 Advantages and digadvantages of the gauge consotedevice 62.3 Dive Computers 72.3,1 Wtec DS Dive computer 82.3.2 Suunto launches new DO dive computer I2.3.3 Suunto stinger dive comput€r 102,3,4 Oceanic DataMask HUD 112,3,5 Advantages and disadvantages of the dive computer 122.4 Existing poduciE observations 13

3,0 Taryet markats:3.1 Market survey 143.2 Survey analysls 15, 16

4.0 Mafietlng Objoctlves:4.1 Establishing the market size 174.2 Meerkats posible target from BSAC active members

(D(iD(ii0(iv)

4.3 Sals target4.4 Forecasted sales

5.0 Marketing Strategy:5.1 Pricing strategy and designations5.2 Advertising designation5.3 Initial advertising facilities and cost5.4 Advertising method and cost:

5.4.1 Exhibitions (diving show)5.4.2 Advertising in divers magazine [1905.4.3 Company's website (Meerkats)5.4.4 Email thrcugh the BSAC

1819,20

2223

25

pLase condnue b net<t page

a

5.5 Advertising cost in 5 year breakdfivn basiE5.5.1 AdvertBing cost in yea|I5.5.2 Advertising cost in y6ar 25.5.3 Adv€rtising cost in year 35.5.4 Adwrtsing cost in year 45.5.5 Advgrlising cost in y6ar 55.5.0 Total adverlising cost3 in SyearE5.e Company's Logo

6,0 DEtrlbuton dorlgnrtlon:0.1 Product dlstrlbuffon cost

e.1.1 Dletlbutlon coet In year I (ono) for 1450 uni60,'1.2 DlEflbullon cost In y€ar 2 br 3150 units6.1.3 Dbflbutlon co8t in y€er 3 br 7300 unitB6. 1 :,{ Dlstlbutlon cost h yoar 4 br 1 2E00 unit8S.1.5 Distlbution cost in vsar 5 br 15200 unib

Appendh l:Samole of Questlonnaire

Blbllognphy

2e27

2A

2S30

31,3233,3434

qA

37

List of Figures

Background R€earch

Flgurc 2.1.'lFlgurs (2.2.1) AFlgure (2.2.2) BFlgure (2.2.3) CFlgu|p (2.3.'l) DFlgur. {2.3.2) EFlgure {2.3.3) FFlgun {2.3.4) G

Dive Computers & Console Pressure GaugesSingle Console Pressure GaugeCompact 2 gauge consoleTrlple gauge consoleVYTEC DS Dive computerD8 dive computerSuunto stingerOcsanlc DataMask HUD

Page No

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45

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'1011

Martot Surv€y (graph!, chart8 rnd tablo!)

Result of Oueston 1Result of Oueslion 6Breakdown of the forecasted 6alES (ovBr 5 years)

Total Market Target withln UK diving marketSales grov/ over five yearsForecast€d unlt sales tabl6 20Initial advertlslng facilities (hardwsre & sofrware) andcost t€bleAdverilslng cost in year IAdverlising cost in year 2Advertislng cost in ygar 3Advertising cost In year 4Advertising cost in y€8r 5Total adverlising co6ts in SyearsProduct distrlbuiion costDlslribution cost in Year 1Distributlon cost in Year 2Dislribution cost in Year 3Distribution cost in Year 4Distributlon co6t in Year 5

Company's Logo

Ple chrrt 3,2.1Ple chlrl3.2.2Grsph 4.3.2

Tabl€!

Table 4.2.2Table 4.3.1Table il.il.lTable 5.3.1

Tablr 5.5.1Table 5.5.2Table !,!,3Table 5.5.'lTabl€ 6.5.5Tablo 5,5,6Table 6.1.1Tabl.6.l.2Table 6.1.3Table 6.1.4Tabte 6.1.5Tablo 6.1.6

LOgOFlgure 5.6.1

l5

1619

18

2A27

'A

u

35

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Overview

Occasionally, there comes an idea so brilliant, so innovative and yet so simple

that you wonder why no one's thought of it before. The Oxycheck Company

has found in January 2008 when a group of final year product design

students, studying at the University of Wolverhampton, came up with a new

Droduct idea.

Tha Oxycheck present invention relates to a device for issuing a warning

signal to divers, (by vibrating) when the pressure in tha compressod-air tanks

has droDDed below a certain level.

The company is running undar direction of the following members (bullets

points below) and the report will be based on each director's individual duty.

. Eisa Kamrani: Marketing and Production Director

. Keenan Merckel: Design and Production Direclor

. Yashar Khatib Shahidi: Finance and Production Director

1. Market Analysis:

1.1 Observations and need for the product

Safaty is a major concem when scuba diving as you are operating in a

different environment and you need to respect the differences.

Although it's been said that, Scuba Diving is one ofthe safest recreational

sports around due to lo\,t/ fatalities and injuries but despite its safe reputation,

there are still important measures that should be taken in order to orevent

diving accidents.

Vvhen things go wrong undeMater they become serious very quickly. We are

surrounded by a hostile element and the dividing line b€twaen a near miss

and a serious accident is a thin one. For example: A minor heart attack soon

becomes a death by drowning or a panic attack brought on by inexperience

and challenging conditions can swifrly lead to the same result.

Although air pressur€ check is one of tho major duties of a diver, because

failure to do so mighl end up running out of air under water but sometimes

happens that divers forgst or unable to check it. Obviously, this happens due

to thr6e main reasons; (i) diving condition (ii) equipment's faulty (iii) diver

neglig6nce.

Equipment faulty is less obvious to happ6n because all the equipments must

test before diving. Diving condition can be predicted before entering to water

(apart from some emergency situations, when a rescuing issue musl be

carried out) but diver negligence is the most obvious problem.

When a diver suddenly feels that the compressed air tank is running out of air,

the diver gets panicked and rushes to the surface.

Consequently, if a diver rushes to the surface too quickly risks fatal lung

injuries, paralysis or brain damage.

Although there are different kinds of air pressure check devices in the market

(which will be detailed in existing product research) but none of them are

capable of automatic waming unless preset and timed.

Therefore, Orycheck felt that there is a need for an alternative air pressura

check device whlch could warn divers automatically by vibrating.

2.0 Background Regearch:

The background research is to make sure that thera is not a similar produc.t in

market already in existence and the idoa is new and unique but also when

researching a project it is very important to look at existing designs. Often tha

best ideas are developed from existing designg b€cause they can be

improved and lessons learned from earlier mistakeg or d6sign faults.

2.1 Existlng products

The existing producis regarding air pressur€ check will be split in two groups;

. Console Pressurs Gauges

. Dive Computgrs

lmaga 2.1.'l shows a sample of 6ach proouc-l.

Figure 2.t.1 Div€ Comput.B & Console presgur€ Gaugosr

l,9r]li!9 Re3oTce_sr frttp:/lmages.googte.co.uMmages?um=1&ht=en&q=scuba+diving+all+pressure+check

2.2 console dive gauges

Most console dive gauges combine both depth and air pressure for the scuoa

cylinder. VVllile there are some single dive gauges for specific applications,

integrated scuba gauges are most common. Generaljy when you purchase a

z-Gauge console you will have both depth and pressure with the gauge.

When you buy a 3-Gauge console you wilt have depth, air pressure, and an

underwater compass. Console Pressure Gauge was designed in 1943, when

Jacques-Yves Cousteau (who has to head lhe list of Famous Scuba Divers)

and Emile Gagnan redesigned and tested the first ,,aqualung,,' or open alr

clrcuit, w€ use today, After 65 years the capability and functionality of the

console gauges are remained the same (apart from the outside appearance).

2,2,'l Aeri6 pressur€ gauge

"This is a single console submersible Prassure Gauge has a specially

designed Bourdon Tube to make this one ofthe most accurate gauges on th6

market. A large luminous dial makes vi6wing oasier in low light situations. For

the price of €46, this device is only capable of reading the air pressure. "

Figure below shows a single console and relevant hose which connect the

console to the comoressed air tank.' '

Figure A (2,2.1) Slngte Console prEssure Gaugo -

2 Online Resources: http/www.divebooty.com/dem/332/aeris-pfessure_gauge. html'OnlineResources: hitp://jmages-goog,e.co.uk/images?um=1&hj=en&q=scuba+orvrng+ajr+press0re+check

Features:

-_ Small and compactPressure gauge to 5000psi and 220ftShock resistant bootReads to 400 barLumlnescent gauge facelncludes orotective boot and 750 mm hose

2.2.2 Compact2 gauge console

. Compact 2 gauge console, is small and compact for less drag and weight.

lvlade from light durable PVC with a compact, ergonomic design. Fitted with a

quality 4cm pressure gauge. Also fitted with a 4cm depth gauge. Fitted with a

- 92cm hose rated to 1500 bar. The gauge faces are luminous which makes it

easy to read, as shown in figure B (2.2.2)

This product is being sold in the market for $129.99 which is about €65.

Figure B (2.2,2) compact 2 gaug€ consol€a

Features

Small and compacl for less drag and weight

Brass pressure gauge to 5000psi and 22oft depth gauge with maximum depth

indicator

Shock resisiant boot

Reads to 400 bar

Built-in thermometer in Celsius

Luminescent gauge face

Includes protective boot and 92 cm hose

a Online Resources: http://images.google.co.uk/images?um= 1&hl=en&sa=X&oi=spell&resn!m=0&ct=result&cd=1 &q=diving+gauge&spell=1

4

2,2,3 Triple console

'- lt is made from highly durable polycarbonate and desmopan with reinforced

- glass fibre for excellent wear resistance and grip. Fitted with a quality 4cm

pressure gauge available in either PSI (0 to 5000) or Bar (0 to 350). AIso fifted

with a 4omm re-settable depth gauge available in either feet (O to 230) or

. Metres (0 to 68). The rear bf the console is fitted with a quality calculated

angulation compass with a rotating graduated bezel. Fitted with a 75cm hose

rated to 15OO bar. The gauge faces are luminous and the console is free to

- swivel on the hose. As shown in figure C (2.2.3).

Figure C (2.2,3) Trlple gauge consoles

Total approximate weight in air - 4759

Suggested retail price - e139.95

5 Online Resources: http://images.google.co.uUimgr€s?imgurl=ht1p://www.cressFsub.nel/images/72console4.jpg&imgrefurl

2.2.4 Advantag$ and disadvantages of the gauge console devices

- Advantages:

Console Pressure Gauges are easy to use

. Product is available in Single console, double console and triple console

. All gauge consoles (fcr diving use) have Luminescent gauge face vyhich

,- makes it easy to read in dark condition.

. Easy to attach to the oxygen tank

. No po\r/er needed (when the air valve is opened starts showing the air level

* and depth)

Dlgadvantages:

Tho products do not give an aulomatic warning to divers, when the air

.. prssure levels drops.

. lt is difticult to read if the water is invisibte.

Gauge consoles are to hang up by lhe side therafore to chack the air

- pressuro it must be grabbed and read.

. Although the producf is reliablo, but it is not hundred percent accurate when'

the @mpressed air pressure drops under 50 bar.

Th6 product functionality and mgchanism remains the same (apart from its

app€aranc€) since it was lirst designed in 1943.

6

a;

2.3 Dlve Computars

* Dive Computers (Scuba diving computoF) are programmable device which

! work with battery pot{er and has more tunciionatity and capabitity in

compariaon to console gaug€s. Dive comput€E are great additions to div6* gear aB€nal which can greafly improve dives experi6nc6 by providing

, important information. A Dlvs computer or sometimEs a div6 wetch is us€d to

sho\.v the divsr their depth and oryg6n l6v6F including many mora fEatureE- euch as ths duration of the dive, decompr3sdon times, their position in th6

L wEtor (No.th, South 6tc) and many other valuablo data.

Of course therB ls a baoad rang6 of div6 compu!6r8 availeble in the martet

with diflbr€nt prica, d6p6nding on dive/s n6€ds end budget.

7

2.3.1 Vytec DS Dive computer

The Suunto Vytec DS is a versatile full decompression computer for the

advanced diver. lts three op€rating modes, ability to set multiple gasses and

its optional wireless pressure transmission probably makes it the most

feature-rich dive computers on the market. The Vytec provides a wids range

of operating modes and settings that can be set to suit ev6ry diveis needs

with an easy-to-operate user interface. Operating mode specific displaye,

reliable push buttons and a dear display add to us€r friendliness.

The rstailer price is e396.

Figure D (2.3.r) shows the VYTEC DS Dive comDuter

Flgure O (2,3.1) VYTEC DS Dtve computoro

Optlom:

PC Interface

Universal Computer RetractorAvailable with or without transmitterHose Mount, Rekaclor, or consolg mounting optionsDepth display range 0450ft (0-150m)Altitude Adiustment O.10,000 leet / 0-3000 metersBattery-po\./er indicator

6 Online Resources: http/images.google.co. ukfimgres?imgurl=http://wwr,v.aqualung.com/imageslprcducts/prd_suunto

2.3.2 Suunto launches new D6 dive computet

Made from stainless steel, the new Suunto D6 dive computer has been

designed to be both a stylish watch on land and a trusted companion

underwater. Suunto's unique digitalcompass is also found in the Suunto D6

and shows divers the direction in which they are heading both graphically and

numerically. The Suunto DO has lhree modes; Air, Nitrox, and Gauge. Divers

can choose between making traditional shallow safety stops or, with the deep

stops function activated, making safety stops at depth.

Price of this device on the ebay is $929 which is equivalent to 1479.6.

Figure below shows a new D6 dive compuler from Suunto.

Figurs E (2.3.2) D6 dtvo computor 7

Featurea:

. Full watch funclion with wake up alarm, 12 ot 24 hour mode, date andtime zone shifr for travelling

. No-decompression Dive Planner up lo 57.7m al21o/a

. Safety Stop Timer

. User seloctable alarms

. Desaturation reset function

. Push-button action to toggle through settings during djving

. Infrared technology

' Online Resources: hltpJ/wwwscubascoop.co.uk/buying/suunio_launches_new*d6_drve co,ono

2,3.3 Suunto stinger dive computer

Suunto Stinger has everything a diver can ask for. lt is the only wristop

computer in the world with separ€te Air, Nitrox and Free/Gauge modes, each

of which has a detailed profile memory. Suunto Stinger records and stores

data for later analysis. You can view compare, and analyze your diving

performance through a specially designed PC interface.

The technical features, combined with the pC interface (not in the price

included) developed ior more graphical representation of your performance,

and our Intarnet Community, whers you can share information with other like-

minded divers irom around the wodd, make Suunto Stinger the device of

choice for every diver and undaMater explorsr. The retailer price of this

product is 444EUR which is equivalent to e299.9 and an ATOM 2.0

Transmifter for thls devico cost $419.95 = e210.

Total price of the device = 8509.3

lmages below shows a Suunto stinger div6 computer and transmitter,

Ftguro F (2.3,3) Suunto sdngorsFeaturcs:

. Air, Nitrox, Free/Gauge modes

. Complete watch functionsr Extensive memory func.tions. Adjustable units. Bookmark func{ione Suunto RGBM model

3 Online Resources: httpJ/www-is-heinemann.com/suuntoiive-computer-stinger-p-163 html

10

2.3.4 Oceanic DataMask HUD

The Oceanic DataMask HUD contains a miniature liquid crystal display

i (LCD) panel, proprietary Digital Optic System, microprocessor, depth

transducer, wireless cylinder pressure receiver, diver replaceable battery, and

controlling soft\{are. The miniature LCD allows you to keep your eyes focused

i on the dive while presenting critical dive data including: current depth, elapsed

dive time, cylinder pressure, and dive time remaining. The Digital Optic

System provides a clear, highly magnified image of the LCD, which is

L viewable regardless of environmental conditions and may be seen clearly by

the vast majority of people, regardless of vision.

Price on the ebay is $1295.95 = e650." '

- lmage below G (2.3.4) shows the product in use.

Figure G (2.3.4) Ocaanic DataMask HUDr0

Features:

In-Mask Dive Computer Digltal Optic System

Wireless Air Integrated Technology

Patented Air Time Remaining Algorithm

Audible Alarms with User Acknowledgment

Backlighting may be adjusted undeMater for brightness as well as full-time or

on oemano use

Diver Replaceable Batteriese Online Resources: httpr//scubatoys.com/store/Scuba_Watches.aspr0 Online Resources: httpJ/search.ebay.com/divingcom puiers-WoQQ-tfksidzm3TQQfromZR40QQfrtszo

11

2.3.5 Advantages and disadvantages of the dive computer- Advantages:

. Allthe dive computers have Extensive memory functions

. The products display cunent tank pressure and remaining bottom time

(RBT), without the use of a high pressure hose

. The products have safet stop countdown

. The products have adjustable profile memory sampling rare

. The producis have undeMater stopwatch and bookmarks which are

easily accessible.

. In addition to thoge advantages, the information can be retrieved and

available to you at all timss

- Dieadvantages:

. Div6 computers are exp€nsive and it is not affordable for the majority of

dtvefti.

You musi buy a iransmitter wh€n you purchasing a dive computer.

You must preset the davice before diving.

. As the device is hose less, it is possible to lose connecton between

transmitter and computer becausa of low signal.

. Dive computers only provide audio alarm which is more likely to g6t

confus€d if there are other noises heard under walsr.

. Alihough the manufactureF say that the device is simple to use, but for

- the non professional divers takes time to leam the functionality of the device.

12

2.4 Existing products observationg

The research canied out into existing prcduc{s regarding to diving equipments

market sector, has proven that there is not a similar product already in

existence and none ofthe existing producls discussed prevrousry can meet

the dive/s safety requirements related to air pressure check, which mentioned

in initial observation (j. i ).

Although lhe Dive Computers have a remarkable advantages to the gauge

consotes such as, Wireless Air tntegrated Technology, No_decompression

Dive Planner, having full watch function with wake up alarm, (Air, Nitrox,

Free/Gauge modes), date and time zone shifl, safety Stop Timer, Adjustable

units and etc, but none of the existing produc.ts has the functionalitv and

availability to fit the nesd of ihe majority of divers.

From the point of Orycheck view, the main reasons which make the sxistino

products quite prohibitive are:

Gauge consoles (pressure check devices) do not have an automatjc

warning option to warn the divers when the compressed air pressure droDs

below the certain level.

. Dive computsrs are too cosfly to be afforded by the majority of divers,

also the warning option on this kinds of devices are an audio sound which

could interfere by th6 sounds under water and @nfuse the oNer.

The flashing alarm oplion on dive computers, which could not be spotted

unless the environment is dark and invisible.

. In addilion, it is possible to lose the connection between crmouter and

transmifter due to poor signal.

13

3.0 Target markets

Accurate larget market selection is crucial to productive marketing efforts.

ldentification and analysis of a target market provide a foundatjon on whtcn a

markeling mix can be developed. products and even companjes sometimes

fail because marketer do not identify appropriale customer groups at which

to aim their efforts.

Although the producl mncept doss have a potential market in different

countriss (especially in the USA market), Oxycheck Company have decioeo

lo put its eftort in to the UK market for the fst five years of business.

Oxycheck aim's to expand the business intemationally by franchising, when

the company has enough fnancial stability to be expanded.

3,1 Market survoy

A primary mafket research was carried out in the form of questionnaire, to find

out an gccurate summary of the potential inisrest to the nsw product.

Questions mainly focusod to the following areas:

. The level of importance of air pressure checking in scuba diving for

div6rs safsty.

. Possible problems regarding oxygen pressure check.

. The level of interest in automatic air waming device and its price

A sample of th€ questionnaie has been shown in marketing section,s

appendix. Please see the Appendix.

l4

The live market survey took place in the following places:

> Smethwick leisure centre in Birmingham

> Stechford Cascades Leisure Centre in Birmingham

> Dudley nautilus - BSAC Scuba Diving Club (Brierley Hill Leisure

Centre)

> SCUBA diving accessories Scuba & Outdoor Pursuits Centre

3.2 Survey analysis

A sample of 32 active members within four scuba diving clubs (named above)

were interviewed and the result showed that 75% of the questioned divers

have had 5 to 10 years of diving experience, therefore, the high rate of the

accuracy in answers is not inevitable. (According to the result for Ql)

Results for the rest of the questions described as following;

Result of Q2:

. Sports diver qualificatlon holders = 65%

. Dive Leader qualification holders = 19%

. Advanced Diver qualification holders = 13%

. First Class Diver qualification holders = 3%

Chart 3.2.1 shows the result in percentages

3%13%t Spods diver quali f ical ion

holdsrsI Dive Leader quali f ication

n0tdercoAdvancBd Diver

quali i lcat on holderstr First Class Diver

l i l lcation holders

Pie chart 3.2.1 Result of Question 'l

Result of Q3:

. Diving set accessories (diving gear) owners = 85%

15

Result of Q4:

. The answer of expecled 100% of the interviewees was "vital" to the

question four, when they asked about the impotency of the air pressure

check.

Result of Q5:

. Almost 85% replied, "Every 5 minutes" when they asked, how often

they would check the air pressure under water.

Result of Q6:

. Almost 90% of the interviewees had at least one problem regarding

pressure check in diving. According to the replies from interviewees the main

problems are categorized as following

. Diving conditions (restricted visibility) = 44%

. Diver negligence = 360/o

. Equipment faulty = lQok

r 10olo ofthem replied without any problem

Chaft3.2.2 shows the result in percentages

r Diving condit iorlsl0iver negligenceD Equipmert faulty

EWithout problem

Ple chart 3.2.2 Result of Question 6

Result of Q7:

. Reply to this question was 100% "Yes" when asked, if they were

. interested in an automatic airwarning device.

16

Result of 08:

Regarding to the price 55% replied €i 20 to € 160, 32% suggesteo

about €100 and 13% would nol mater the Drice.

Result of Q9:

As to suggestion, 7070 suggested the device to be compact and life

cycle and 30% reminded of battery kit durability.

4.0 Ma*eting Objectives:

4.1 Estrblbhing the market size

Although the ProfesBlonal Association of Diving Instructors (pADl) is the

world's largest recraalional diving membeFhip and diver training organization

and serving more than 130,000 individual profossional members and more

than 5,300 dive centars and resorls in more than 1gO countries (foundeo In

1966 by John Cronin and Ralph Erikson), but Oxycheck market target

foucusing on UK marke.

The main diving organization in Britain called BSAC or Brltish Sub-Aqua

Club which is the governing body of recreational diving in Britain, Tho club

was found€d in 1953 and has over 5O,OOO member. lt is a diverkaining

organizalion ihat opsrates through its associated network of around 1600

local, independent diving clubs and around 4OO diving schools woddwide.

According to a market size slatistic provided through the Mintel, the UK diving

market size in Europ is 200,OOO audience (based on total divers populatton)

bu the average UK market is = 55,000 (based on actjve divers population ),

therefore a medium term business plan will be aimed at 55,O0O BSAC aclrve

member€ for the first five years (as mentiond previously in target market

section).

17

4.2 Orycheck's posibte target from BSAC active members

Live market result showed that, 58% of the divers owned diving equipment,

42% hiing.

Taking this into account, not all of42% ( 23tOO members ) would need to hire

the equipment from the clubs which Oxycheck name them as ,,Bulk buyers".

Orycheck estimated that there will be SOOO units targe within the clubs across

the UK therefore, the total pssible target estimated 39,OOO units.

Table below shows, how the total market target within UK diving market size

has been figured out.

As an start up company Oxycheck haE aimed about 4% of the totalpossible target for tho firBt year which is about 14SO units of thepuposed p.oduct.

4,3 8ale3 targetAccording to the broad rosearch, Oxycheck has confidence that the aimed

produc{ is a unique idea, therefora, there will be no competition, that Oxycnck

would re€ch the total sale target of 40,000 units within the first tive years.

Table below shows the gragually grows of the sale per year (over the first five

fiv6 years).

Year Units salss perYear1450

2 31503 73004 128005 15200

Table 4.3,

AverageUK market

Divingequipment

ownerll

oquipm6nt hirers(b€ginner diveE &

othet3|

Clubs(Bulk buyer3)

55,000 31900 23100 8000

'lOOYo 58o/o 420k 35%le 4.2,2 Total Ma wlthln UK dlvlno mE*.t

grow over ffve yoara

l8

Using the table 4.3.1 the breakdown of the forecasted sales (over 5 years)

has been shown graphically.

Forccastad Salcs

1600014000'12000'100000000600040002000

012345

YearGraph 4.3.2 Broakdown ofth€ foracaat.d sale! (ov€r 5 years)

4.4 Forecasted sal€s

Although th€ UK weather restricts outer diving activity in the winter, this will

not affecl Oxycheck sale target. Statistic shows that BSAC members are

actlve in all ssasons of the year. For example, when the weather changes to

become cold in UK, Britlsh divers make their way to North Cyprus wh ich is

an ldeal p lace for scuba div ing, s ince the is land doesn' t have t ides

to worry about, and is blessed with warm waters for much of the

year. Or, they head up to Spain with a coastllnE of 5000km which

includes the Msditerranean and Atlantic coasts as well as the Balearic and

Canary lslands ther€ is no shortage of scuba diving opportunities in Spain.

For BSAC divers it is the clear waters of the Meditenanean that is most

attractive for a diving holiday.

Therefore, the unit sales shown in the forecasted sales table (per weekly &

monthly) expected to stay evenly across the year.

kI

19

a

Table 4.4.1 shows the Forecasted unit sales weekty and monthly within s

yeara.

Year Por w€ek Per month

1 120

2 05 262

3 '152 608

4 2€6 1066

5 316 1266

Table,f.4.t Forccr3tsd unlt 'rt€.

table

20

5.0 Marl(eting Strategy

Organizations are largety dependent on the marketing function for growing the

business and driving the customer experienc€.

From the marketing direclor point of view, the product (s) has to be right.

Therefore particular product decisiona are important in the product

planning process.

Oxycheck particular strategy point is lo take advantages of the weakness

point of the existing product in the market and apply the appropriate benefits

to its aimed product.

Taking this into account, tho air pressure waming dovice should have the

following advantages, compared to the existing products:

. Product should be easily attached to the air tank

. To be c€pable ofwarning the diver at list in two cortain leval, when air

pressure drops.

. A reliable battsry kit which would tast longer (mor6 than g years).

. Applying an appropriate test to the device in real environment (tour

weeks of frequent test in different temperatures) to make sure that the product

is reliable.

. Product should enable divers to 6njoy diving without frequent checking of

the air pressure in oxygen tank.

. A three years wananty to deal with faulty goods or services by a variety

of methods including repair, replacement.

2l

5.1 Pricing strategy and designations

The pricing decision is a critical one for most marketers, yet lhe amount of

attention given to this key area is often much less than is given to other

marketing decisions.

The final price for a producl may be inlluenced by many factors which can oe

categorized into two main groups:

. Internal Factors - For instance, product pricing may depend heavily on

the productivity of a manufacturing facility (e.g., how much can be produced

withln a certain period of time).

. External Factors - There are a number of influencing factors which are

not conirolled by the company but will impact on pricing decisions.

For most customeE price by its€lf is not the key factor when a purchase is

bsing considered, This is because most customers compare the €ntire

marketing offering and do not simply make lheir purchase dacision based

solely on a producl's pric€,

Taking all these into account and referring to the initial survey rssult which

showed that 55% of the interviewees are willing to pay !120 to €160 for the

product."Ir

A long discussion took place with the other members of the group, finally a

retail price of fl45 decided tor the product.

'.' Online Resources: http://www.knoMhis.com/luiorials/principles-ol-marketing/pricjng_decisions/4.htm

22

5.2 Advertising designation

"Promotion is a form of crrporate communication that uses various methoos

to reach a targeted sudience with a certain message in order to achieve

specific organizational objectives.' ', The Oxycheck marketing objective for

the first fwe years of business is to sell 39900 units of product across the UK.

Thereforc, company has decided to establish an effectjve promotional

strategy to achieve its target. For the first five years of business Oxycheck will

attempt to get maximum benefit from promotion and advertising by cost. For

example, the internet is one ofthe less cosfly adverlising methods where you

can introduce tha product to your audiences, nationally and internationally.

Taking advantagos of website, Oxycheck will invite the Marine Accessories

Manufactures, euch as Speedo, Saltwater/Marin6 Accessories, Fusion

Wakeboard, Newave Marino etc, to the advertising co-operation (Advertrsrng

their produc.t on Oxycheck wobsite and O)qcheck product on their w6bsi€s).

Th6 other available methods of advertising will be; Adveftlsing in Oivols

Magazlne, Aftendance to Exhibitiorc (dlving show), Emalllng which nag

been detailed to year by year breakdown and the costing information of this

details has been passed to the tinance director.

It is obvious that company will gradually grow and the profit will incraase year

by year. Consequently, company will be able to invest on different advertrErng

and promotional methods.

It online Resources:decisions/1.htm

httpj/www.knoMhis.com/tutorials/principles-of-marketing/promotion-

5,3 Initial advertising facilities and cost

Online websile advertising can be effectively managed al a tow cost. This is

especially helpful for small start-ups with limited capital. As soon as Oxycheck

got its web site set up, the company will begin to draw its targeted traffic to the- site through efiective online website advertising strategies,

* As all memb€r of the team-are familiar with webpage d$igning, therefore,

Oxycheck do not need to pay for webpage designing.-

How6ver, a suitable pC, a Microsoft Frontpagg 2OO2 package and some

- relovant sofiware such as 3D studio max, multimedia flash softwars for

graphical design to craate a qualily image of ths product will be necessary.

Table below Ehows th6 initial advertising cost and facilities,

Desktop computer €380Web d€sign software (MicrosoftFrontPage 2002Software for graphicat design(gDstudio max modollino)

€54.99

lllustrating with Macromedia FlashMX 2004 (virtual realitv)

t14.49

Inltial Total Advertising cost . f524.48

Table 5,3.t Inltlal advortlllng t clll0.s (h.rdw.E & lottwarr) and co.t tabt.

24

5.4 Advertising method and cost;

5,4.1 Exhibitions (diving show)

There are two diving show events held every year in ExCeL London and

Birmingham NEC, where divers come from across the country (even from

Europe and other part of the world) to buy new scuba diving gear, Iearn to

scuba diving and to seg the latest innovations in new scuba diving equipment.

A small rec{anglo table of 1200mm x 600mm and a display panel of 1200 x

100mm will be rented to advsrtise the product by lsafleting, also displaying

some product to attract the buyors.

5.4.2 Advertblng In divers magazine €190

Adveriising in magazine provides a targeted, low cost and highly visible way

to reach thousands of local real esiale professionals wh6re they live and

work. \Mile visiting tha diving clubs to take out a live marketing surv6y, the

Marketing Director was raminded of advertising on diving magazines and

many divers said that they had triad products or services they had s6en, had

advertis€d in diver magazines.

Discussing this advice of tha divers with other members of th€ team the

Oxycheck beli6v6s that tho magazine gets into some particular places such

as clubs, state offices and sport centres that may have restrictions or a

closed-door policy to sales persons.

25

5.4.3 Company's website (Orycheck)

As menlioned previously, when the company,s website designed and suitable

images of the producl created, a Mrgins Businesses Broad band Option .t

package will be available for the company, for an annual cost of e48O which

will be included the web space cost as well.

5.4.4 Email through the ESAC

Email Advertising is a meaningful and highty responsive way to reach Internet

users. lt is a great way to ac@ss our most targeted and receptjve audience

through out UK (and world in next stage). Assistanc€ with mass email grabs

th6 attention of next potential clienl base.

Email Advertising through the BSAC (3,000emails) wiI offer many

opportunities for Oxycheck to increase sales by spending a small amount of

money. (BSAC & PADI havs a data basa of all members including email

addrssses).

5.5 Advertising cost ln 5 year breakdown basis

5.5.1 Adyertlsing cost in year 1

Exhibitions (diving show) 2S-29 tvtarch 2OO9 Excel London €250

Exhibitions (diving show) 13h & t4mof Octobt2009

NEC €180

Divers Magazine e190

Virgins Businesses Broaa bana Option t 0480

Oxycheck Website free

Email Through BSAC(3,00oemails) €'l 80

Total t1280

Table 5.5,1 Advertising cost in yoar 1

26

5.5.2 Advertising cost in year 2*

Price rise could affect all businesses. Oxycheck predict that some ofthe ad

- cost such as exhibitions or magazine could rise between 10 to 20 percent.

However, other advertising sources such as mailing or intemet facilitias would

lower the price or stay the same as previous year prices.

_ Therefore the total advortising cost for year 2 (tablo balow) shows an increase

of 7% which is !90 comparing io the firsl year.

Exhibitions (diving show) 28-29 March 2010 Excel London t290

Exhibitions (diving sho/) 13'^ & 14'n of Oclober2010

NEC e210

Divors Magazine 8210

Virgins Businesses Broad band Option 1 €480

Oxycbck Website fre6

Email Through BSAC(3.000emails)

e160

Total [1370

Tlblo 6.5,2 Advord3lng cost ln ycrr 2

2'7

5.5.3 Advertising cost in year 3

The total advertising cost of year 3 could rise by 13.2% for me reasons

mentioned in year 2 (predicted price rising) also Oxycheck aims to order a

larger emails list (3000 e-mails will be increased to 4500 e-mails.

Exhibitions (diving show) 28-29 March 2011 Excel London e320

Exhibitions (diving show) 'l3- & 14" of October2011

NEC e230

Divers Magazine €230

Virgins Businesses Broad band Option 1 8460

Oxycheck Websits free

Email Through BSAC(4500emails)Total €1550

Tablo 5.5.3 cost in ygar 3

5.5.4 Advertising cost in year 4

In the year 4 of tho business, (to reach more people faster) the email list will

be increased to 6,000 mails, therefore, adding up the cost rise according to

the table below, the total advertising cost will be e1700.

Exhibitions (diving show) 28-29March 2012 Excel

London !360

Exhibitions (diving show) 13' & 14'of October 2012

NEC t250

Divers Magazine

Virgins Businesses Broad bandOption 1

1480

Oxycheck Website free

Email Through BSAC(6000emaits)

e380

Total €1700Table 5.5.4 Advertisinq cost Inng cogr In year

28

5.5.5 Advertising cost in year 5

- In year 5, mailing list will stay the same and the other advertising cost will rise

as predicted.

Therefor€, the total adveriising cost in year S will be e1790 which will be

showing an increase of 40% comp€ring to the yealI of the Dusness.

Exhibitions (diving show) 28-20March 2013 Excel

London e400

Exhibitions (diving showy tam & t+mof Octob€r 2013

NEC e280

Divers Magazine 8250

Virging Brcinosses Broad bandOotion 1

e4E0

Oxychsck Website froe

Email Through BSAC(6000amails) LJOU

Total e1790o t.5.5 colt In yglr 5

5.5.6 Total advertlslng costs in Syears

Initialcosting 8524.48

Year '1 El280

Yeqr 2 e1370

Year 3 81440

Year 4 e1700

Year 5 r1790

Total €8104.,l8

Tablo 5.5.6 Total advenislng costs in syears

29

r

5,6 Company's Logo

Business Logo is one of the important aspects of the business industry, as

logos give a visual reprosentation ofthe company and is actively ussd in

marketing and advertising campaign.

After consultation to the other members of the team the company logo (figure

5.6.1) has been created aS a unique identification of the business.

Flgure 5.6.1 Company's Logo

30

6.0 Distribution designation

For marketers, the distribution decision is primarily concerned with the supply

chain's front-end or channels of distribution that are designed to move the

product (goods or services) from the hands of the company to the hands of

the customer.

Therefore, when the customers' attention drowns to buy a product (by

adve(ising), the most reliable and suitable channels should be used to serl

and deliver the product to the customers.

There are varieties of distribution channels available for the product (air

pressurc warning device), such as tranchising, int€rnet, catalogues, sales

representaiives, retailsrs etc. When analyzing which distribution channel iB

best for your business, you should not restrict your8elf to one channel, but

instead adopt a number of channels that are suitable for selling your

producvs€rvice efficienlly and ofiectively (if necessary).

For example, a business may us6 a retailer to sell their product and at the

sams time, use direct mail and telemarksting to further encourage sal6s.

There are a number of faasible combinations.

Oxycheck have chosen the Inlernet and existing retailers.

The reasons for choosing these channels;

Internet (direct selling); product advertised on the internet is immediately

available to your target audience of users. You don,t need to wait until

resources are available to conduct business, because the internet ooerates

24 hours. This makes the internet a very cost-efGctive medium to dishibute

the product throughout the UK. Therefore selling your own product(s) on the

Internet is the ideal solution to make more orofit of lhe sales.

31

Exigting retailers: One of the advantages of selling a producl through

retaileF (located in touns and cities) b that, the consumers can view, and

check the produc.t physically and then make the right decision to buy it.

Because, there are not many diving accessory retailers as the other goods

have. Therefore Oxycheck will use the retailers based in sport centres (in

some sport centres they are in a form of kiosk lo sell sport accessories).

Although using retailers as distribution chsnnel reduces profit but Oxycheck

believe that combination of suitable channels would help to increase the sslo.

However the club raiailers will get a small percentaga of sold products.

To avoid the traditional payment mothods such as choques and mon6y

orders, a PayPal payment procossing account will be signd up, The payment

method will allow cu8tomers to use their credit or debit cards to pay the

amouni fur purchesad product through a reliable servicvs sourse.

"Although ther is a s€rvice charge of 3.4% on private individuals but for the

regular users (esellers) the charge will be 1.4% plus €0.20 per transac-tion.,, 13

https://www.paypal.com/uk/cglbinlrebscr?cmd=*disp{ay-fees-outsidot3 online Resources:

32

6.{ Product distribution cost

- Paypal service charge: 1.4% plus e0.20 per transaction.

, Oxycheck predicts that a 40% ofthe sales will b; through the retailers and

company will receive the amount thrcugh a differenl payment methodes

(cheques, postal order, transaction through banks or collecting in cash)

Therebre the Paypal service charge for the 6oyo percent of direct sales

lhrough the company,s wobsite will be as bllowing:

The retail price is €14S (this price has been decided with consultation to the

othere members of th€ team)

Paypal service f6e = 1.4o/o + eO.2.

Therofore (1.4o/o x 122) + 0.2 = €1,908 per units

Table 6.1.1 shows ho\w ths paypal servic€ charge (cost) for direct sales hasbeen figured out within the tirst 5 years ofthe business.

Year Unib salesoor vear

diroct unltlales per year

Paypal service f€e (1,4%plus €0.20) per transaction)

1450 870 €'t659,96

3150 1890 €3606.12

7300 4380 e$57.04

4 12800 7680 t14653.44

5 1s200 s120 e17400.96

Total 39900 23940 845677.54

Table 6..1.1 Paoduct dbtrlbudon co3t

Note: to help the company to cover lhe distibution cost. a e6.SO fixed

postage charge will be applied to the retail price of the product.

33

packaging cost:

White postal boxes (2OOmm x 14ommx7smm)

. 50 boxes for e14.30

. bubble wraping - large rofi (50 melers ro ) covering 60 packages for

€19,04'

. packaging cost for direcl sales and retailers channet will be rne same.

Therefore packaging cost will be figured out as tollowing:

Boxes = €414.7 (first year sates (1480 / S0) x't4.go = 414.7)

! Bubble wraping = €460.1

Total packaging cost for year 1 (one) = eg74.8

. Note: Thers will be no transportation cost because the company is locatod bylhe local posl office and all need lo c€rry the packages for 2 minuts.

Postage cost:

'Price of the low cost Standard Parcels service up to 1Kg is eg.ES and up to

1oKg cost e11.45, Therefore an average postage cost of e2.60 will be applied

per unil." 15

6.1,1 Dbt.ibution co3t In year 1 (one) for 1450 unltE

Annual dbtribution costPaypal servicecnarue

€1659.96

packaoinq 1874.8postage e3770Total 86304.78

Tabb a.l ,2 dist.lbuilon co8t In vear 1

'- Onlin6 Resources: http://images.google co.uMmages?q=postat+package+boxes&um=1&hl=enI5 Online Resourcsst httpJ/www.royalmail.com/poftat/ftnlcontentl ?ca d=4OOO3.l &mediald=5100071 1

6.1.2 Distribution cost in year 2 for 3{50 units

Annual distribution costPaypal service charge €3606.12

packaging €1900.5Postage e8190Totsl €13696.62

Tabl€ 6.1.3 Dbtribugon cort in ysar 2

0.1.3 Distribution cost in year 3 for 7300 unitg

Annual dlstrlbution costPayoal service charqe e8357.04PackaOino t4404.3postage €18980

Total 831.741.34

Table 6.1.4 Dbtrtbuflon cost In y€ar 3

6,1.4 Dbtrlbution cost in year 4 for 12800 units

Tabl.8,l.5 Dlltaibudon cott ln year4

6.1.5 Dbtribution cost in year 5 for 15200 units

Annual distributlon costPaypal servic€ charoe t17400.96Packaging 29170.7postage e39520

Total €6609t.66

Tablo 6.1 .6 Distribution cost in year 5

All the calculation (figures) and information regarding distribution cosl hasbeen passed to the tinance director.

Annual dbtrlbution costPaypal service charge € 14653.44packaging 87722.7pos€ge e33280

Total 855656.14

J]

Appendix

36

Q6. Frye you ever ercounter€d problems regrrding air pr€ssure checktlevice?

E Ye":

ENoIf ycE pleare tick tppropriat€ bored b€low

E I! it du. to div.r tr€It8.nc.?

U Ir it doc to f.ultt .quipmcnt?

E lr it duc to divhS cotrdltlo|rr?

(Xher! (ples!€ 3!Ecify)

Q7. Would I sclbr diving rir wrrtrinS device th|t sutomatically warns you ofrunring out of alr, be of interert to yout

E Yes

t rNo

QS.litrt price would you e:poct to pry for thll type ofalr warningde,vlc€?

E t120 -tr60tr 3t6o - r2ooE 9200 or more (pl€sle lp€cify)

Q9. Do you hsvc rDy lugg€ition! r€grrding r scubr diving air pre!6urechecking deyice?

On behalf of the University of Wolverhampton, atrd our s€lf we would lilre toth8trk you for t8kitrg the tim€ to compl€te thi! quEtionnaire.

QUESTIOIINAIRE

'We Nre r group of rtud€rt! curetrdy workbg on a derign proj€ct regsrditrg 8Scuba Diving air prercur€ ch€ck deyice. It would b€ gre;dy Niprecia-ted if youcould sl|rwer th€ qugtions correctly to the bert of your knowledge.

Ql. Eow long have you been doing scuba diving?

E I - 5 y€rrB

E 5 - 10 yct]r

E 10 yea.r o" mo* (please specify)

Q2. What ir your scuba divlng qualilicetion?

Q3. Do you own diving r€t rcce$ori€s?E yes

ENoIf (No', please lp€clfy

Q4. Eow import nt i! checlitrg tbe rir prclrure und€r wat€r to you?

E Importrnt

E Very importanttr vital

Q5. Eow oft€tr woutd you check th€ tir pr€rsure grug€ (under wsterx

E Every 10 minutetE Every 20 rninutesE Othel! (plcas€ lpec y)

I We 8r€ r grcup of ltudcnt3 currtntly working oD*darign prcject rcgrldlng r; Scuba Diving rir prclsurc chcck devica It would bc gready rpprtctrtcd ifyou

QUESTIONNAIRE

could rnlwer thc qucstion! corractly to thc bcrt of your knowlcdge.

Ql. Eow long hrvc you bcen doing scubr dMng?

E/ 1- 5 yern

E 5 - 10 ycrr!

E 10 y""rr o" ^o""

(plcsle rpcclfy)

Q2. Whrt i! your lcube divlng qudilicrtion?

Se"a-= D,i*p

- q3. Eow imporaart i! chcckirg orygcn prcurrc utrdcr wrtcr to you?

E Importrnt

- tr Va? impor'8ot

V virul

Q4 Eow oftcn would you chcck orygen prctrurc geugc (under watcr)?

u EYGrf 10 Einutct

-

EvcrT 20 minutcr. .^ . . . . '<

Er Ofrcrr (plcrrc rpccifj') c-v€Kr J Nr^E

Q5. Have you ever cncountered problems regrrding oiygen pressurc check

devise?

/ Yes

nNoIf yes, plcase tick apProprirte boies below

n It it drr€ to div€r negligcnce?

d/ Is it due to faultY equipmedl?

E Is it du€ to dMtrg.onditions?

Othen (pleare specify)

Q6. Would a scuba diving air warning devicc thrt automatically warns you of

runtritrg out of orygetr, be of inter€st to you?

Vlues

-No

Q7. What price would you €tpect to pty for this type of orygen warning

devic€?

vcr20 - tr6oE t16o - r2oo

-

€200 or more (pleasc specify)

Q8. Do you have any suggeltions regarding scuba diving air presgure check

device?

On behalfofthe Univetsity of Wolverhampton, a{d our sclf we would likc to

thank you for taking thc time to co!|plete this questiontraire.

QUESTIONNAIR.E

We are a group ofstudents curretrtly working on I desigtr project rcgardhg r

Scuba Div-ing air prcssure check device. lt would be greatly apprcclrtco rl you

"oorA ""t.t"I,n" i"estiotrs correctly to the best ofyour knowledgc'

Ql. Eow tong hrvc you becn doing scubr diving?

E' 1- 5 year.

E 5- 10 years

-

10 ycars or more (Plesse specify)

Q2, Whet is your scubr diving qualilicrtion?

SPa'-t s- .-\ , .ja-"

Q3. Eow importrnt is checking orygen presrure underwrter to you?

-

Importstrt

D Very important

dvnr

Q4. Eow often lvorld you check oxygen presrnre gaugc (utrder wrter)?

! Every 1o minutes

n Everv 20 minutes

d otlen lplease specig

Q5. gave you ever etrcountered problems reg|rdiDg oxygen pressure ch€ck

devise?

Ef Yes

!No

If yes, pleare tick appropriate bor€s below

E/lt it duc to diver ftgltgen e?

- I3 it drc to frultY equipment?

- t! it due to dlvirg cotrditton!?

OthcE (plealc rpecify)

Q6, Would a scuba diving air wsrning devicc thrt sutomrticdly warns you of

Running out of orygetr, be of interest to you?

ffYes

ENo

Q7, Whrt pricc would you erpect to pry for this type of orygen warning

Device?

6l trzo - fleon t160 - 1200

-

!200 or more (Please rPecifY)

Q8. Do you have any suggeltionr regrrdilg rcuba diving air preslure check

device?

On behalfofthe University of Wolverhampton' etrd our telf we would likc to

thank you for taking the time to complete thfu questionn&ire'

Page 1 of l

Estimated size of European diving markets, 2000

t50(Xno

1000000

500000

FE$5'€grn;

Sourca; CTO/Technodive S.AR.L

h@://gtaphserver0.mtutel.com/inagescrvcr/gEr_ipgl6tztf2l6_0]18_807_814_431... 18/02200E

Diving Touism - Intemational - April 2007 . Maxket Size atrd Trends Page l of2

Diving Tourisrn - International - Apnil 2007This repod is supplied ln accordance wiln Minrets terms and @ndirons o Minrot tnlernEnonat Group Limited

Reli€ble, consistent data on lhe worldwide diving industry is unavailable. As a matter of fact, statisticsrelatrng to.this.niche mark€tare quit€ fragmented and sparce_ presenfly, tho most trustworthy sourc€ol Int€matbnal diving statistics is PADI.

Sinc€ its inception in 1966, PADI has issued a tolal of i4,730,658 certifications. tn 2005, itscertific€tions hit 913,419 - a dip of some 4.4% over 2OO4 figures. The docline can be aflributedprimarily to lhe tsunamith6t occured on Boxing Day in 2004, which severely dFrupted tounsmactivity in diving hotspots, such as the Maldives and Thaitand, for sevefat m6nihs. The Americ€s,followed byAsia-Pacific, are PADl,s two t€rgost source markets, gamedng € totalof287,gO7 (31.5%)and 1U,9'17 (2O.2o ) rcspectively in terms of entry as well as c.n-tinuing c;rtifications awarded in2005

FTGURE 1; PADI c€riification history wortdwide, 1970-2005

Cadlficadon! p€r y.adl6 changscumula{vo codifl cadons% chango

7970 23,736 +95.r 47,572 +99.6L97L 36190 +53.7 84,062 +76,7L972 51,842 +42.1 !35pO4 +6L.77973 6O,L2O +L6.0 t96,O24 +44.21974 49,834 -t7.2 245,858 +25.4L975 57,244 +22.9 307,tO2 +24,91976 66,509 +8.8 373,71L +2L.71977 69,77L +4,7 443,482 +L8.71978 86,187 +23.5 529,669 +19,4L979 95,793 +7O.4 624,862 +78.01980 107,404 +r2.8 732,266 +77,21981 124,365 +15.8 856,531 +17.0r9a2 147,429 +13.7 998,060 +16.51983 168,778 +19.3 1,155,838 +10.91984 203,001 +20.3 1,369,839 +17.41985 240,384 +18.4 1,610,223 +17.51946 277,37A +L5.4 !,884,375 +L7.O1987 315,468 +73.7 2,203,069 +76.91988 350,000 +10.9 2,553,059 +15.91989 3a7,767 +10.8 2,940,836 +15.21990 440,478 +13.6 3,381,254 +15.01991 456,045 +3.5 3,837,300 +13.s1992 529163 +76.L 4,366,763 +73.81993 564,672 16.6 4,931,435 +12.9L994 625,497 +1O.8 5,556P22 +L2.71995 680,263 +8.8 6,237,195 +12.21996 72a,295 +7.1 6,965,480 +tL.71997 742t93O +2.O 7,708,4LO +rO.7r99a 779,467 +4.9 A,4a7,877 +L0.11999 809,912 +3.9 9,297,789 +9.s

http://academic.mintel.com/sinatra,hintel/pri ntl id:2j 1946 06/03/2008

Diving Tourism - Intemational - Apdl 2007 - Market Size and Trends

2000 854,052 +5.4 10,151,841 +9.22001 908,188 +6.3 11,060,029 +8.92002 896,551 -1.3 11,956,580 +8.12003 905.278 +1.0 12,861,858 +7.62004 955,381 +5.5 r3,8L2,239 +7.42005 913,419 -4.4 14,730,658 +6.6

Page 2 of 2

During lhe 1970s, groMh in the number ot diving certificates awarded gr6w at an avorage of 26% perannum, c.inciding with the boom in air and packaged hotidays. Comparatively, the growth inintemational anivals averaged onty 5.6% over this period. Av€r€ge growth inFADl aertificationsslipped to 15.1% during the 1980s. Nonethel€ss, this was €bout twice the rate of that achieved by theglobalanivals rnarket over€ll. From 2000 io 2005, yoar-on-year growth slowed to 2.5%, a figure -marginally lower than ths 3.3% attained by the wo.ldwide inbound tourism sector. The num59r ofPADI cartifications psaked in 2004, the s€me year global tourism rccov€rcd f.om the n6gativ6impacts of both 9/11 and the lrao waf.

Demand for diving holidays worldwidel\4intel approximations bes€d on available data suggests lhat diving tourism accounts for ebout 3-4million trips woddwide e€ch year, which is equival€nt to le99 than 1% of the total numb€r of annualinbound anivals aacen€rned globalty. Th€ LJNWTO estimates that the globgt drvrng toLlrism Industrygenerates Eround US$ billion p€r annum. H6nce, divers on holidsy tend to sp6nd-an 6ver€g€ of -aboul US$2,0Cr0 per trip, a^ftg^ur€ re€dy two and a h€f tim€s highei than tne dverage spent ius$a+s;Dy Intemationat arrivats in 2005 Acc.rding to pADl, therg are 5-7 million active divors around theworld. Around 3 million orign€te from the US. m€king the US th6 targ€st singlo source of€ctivescuba divsrB worldwide. The Sporting Goods Marketing Association iSGl\,lAib€ti€ves thet about 3.4million US rgsidsnts particpeted jn scuba diving in 2004, an increasg of j7 2rh ouet 2OOO.

FrcuRE 2: Participation in scuba diving in the US, 1987-2004

Number ot p.rtlclpanB (OOO) o/o changeL9A7 2,4331990 2,515 +7.51993 2,306 -11.81998 3,448 +49.52000 2,901 -15.92001 2,700 -6.92OO2 3,328 +23.32003 3,215 -3.42OO4 3,430 +6.7

SouBe: Sp..b G@d6 Ma.r€rjns A$oci.tton

A stridy clnducted by the CTO concluded that there were approximately 1.7 mithon certified activedivers m Europe in2000. France (18.1%). cermany (24. j%). ttaty (18 io/ andthe UK\12ok) arcEurope's pnmary diving tourism markets. Of the total number of diveas in Europe. €pproximately861,000 (or 51.9%) took a diving holiday in 2000. Based on both pADt and CiO dai;, Mintelestimates that there are probably arouM 2 million certified dive.s in Europe today.llyou want nDre details abo.ii this parricutar repon, pbase contacr $e Mintet infomalion team on +1 312-932-o4oo inlhe U.S. or +44 (0)2G760640O0 in the L,K and lh€ r€st of the wodd, or emait ih6m to ]nfoominiet.ccm.

06/c3n008

. Intemational Dving Ma*et - Intemational - December 2003 - Market Charactedstics Page I of3

lnternational Diving Market - International -December 2003Tnis €port i6 suppfied

'n a@ldance with Minret,s r€rh6 and conditjons. @ Miniet knenatonal Group Ljmiied

DemographicsScubE dMng has always bg€n considered a fairly youthfuland athletic activity and this is reflected inthe demographic in Figure 4. Over the past decado, the mean age of certified divers in the USA hasrrcreased slghty, €nd whitst more people taking are taking up th6 sport later in life, pADl attributesthis to more.of a signof market maturity. h the USA the emergence of a c€sh_ and_ timejch babyooomer ssctor may atso geneElg a wave of older and more active divers. According to pAOl, 60* ofcertified divers werldvride are aged betwe€n 1 5 and 34 years oI age, and around tu;.{hirds are male.

Jha.fqrmg-r{y held eefeption is that most divers are we -€ducated and well-travelled and I study intt|e US. ry Universrty of VMsconsin SeagrEnt revealed that 8096 hetd a valid passport, cornpared with20% of the populgtioft on ave€g€. Thu€ Amefican divers lepresglts a valugble iaragt narkel fortourbt bo€fds, esp€cially those in .elatively n€srby Caribbo€n d€stinstions, seekin; b boaden th€irappeal beyo0d r|€ all-inclu9ive and l|'D(ury products.

Ft€uRE 3: Ms€n ag6 of divers €ceiving certification in th6 USA. 199G2OOO

1990 2000Mafe 24.5 29.7Female 28.5 29.3Tot l 2a.5 29.4

GonderA3 tt|g dMng msRet expands and matures in th6 USA the hnde s€sment i9 orowinq. alb€it at €mod€rat€ .Ete. B€tween 1990 and 2000, the proportion of iE nal€ ac{-ive div€rs-orew ircm 31.7% to34.6%. Ths gro"vh of the fomale cornponont indic€tes thst th€ m€rket is becom-ino moresophisticat€d and broadening in appe€|. This is obviousty conducivo towards e coiptes man<er,Enabling dive ragorts and opgrators to taitor th€ir holidays accodingly.

FGURE 4: US PADI certific€tion, by gender, 1990-2OOO(%\

YGar F€mala llale1990 31.7 68.37991 32.3 67 -7!992 32.5 67.51993 33.2 66.81994 33.8 66.21995 34.0 66.01996 34.1 65.91997 34.7 65-31998 35.1 64.91999 34.8 65.22000 34.5 66.4

http://acadernic.Dirtel.com/sinatra./mineVpri ntl i&-,15429 I 20tu/2008

. Intemational Diying Market - In&mational - December 2003 - Market Cha@ctsdstics paee 2 of 3

The US nE ketAs the great€st slqgle sourc.e af intemational dive tourists the US market is a useful baromgter for theatiaraderistic.s of t|e market wgrldwide.

A study cordu.ied in | 999 by Texas A&M University fouoj that 64% of divers in the State had four ormors ye€rs of college educ€tioo behind them and that they entoyed a m€di€n income rang6 ofbetween US$O,OOO and US970,000 per annum.

Populous silatgs s{rch as California, T6xas and New yo* unsurprisingly find themggtues in the topftve diver€td$ h t€ms of resir€ntial addesses, but the pres€nc€ oi Hawaii in the to9 five forlocatbn of cerlification compldion indicate€ that many pADl coirsqr take th6 form of; 'trainingholiday'. Thus it is nd just active divers wtro constituto a toorism s€gment, but also those in training.From lhis and lhe passpo.t evi(bnce, there would appear to be a wjaer propenshy amongst divers iofavel great dstancas to gither pass thgir training or 6njoy the oppo unities gr€ntad by cgrtification.

P,aol's holiday division rgports t|at prior to Septernber 11th Arn€rican divers were becomina moreadventurous dd looldng fadher afeld to destinations in the Red Se€ €nd Micfonesig, but hive sincepulled back soms,vhE[ to tradition€l destinations in Central America ths Caibboan, wirich, bscawe ofprice and prqimity afe always going to be the favourites of the Arnerican market.

F|qunE 5: Top US states for padi c€rtification, 2000

Rttlng DhrGE rcrldentlal lddress Locrton of cGrflficrtlon comple onCalifornla

FlorldaTexas

New YorkIl l lnois

FlorldaCallfornla

HawallTe)(asIllinols

The European marketIn Ewopg th€rs has boen a definitq b€nd away from traditional, local clubs towgrds Drof$sional.intom€tional, diving schools, psrtiqJlady those of North Am€rican pa.ent€ge, such as pADt. A socialclr-6 Etuctrre do6€ still exist al local l€vel and for m€ny counki€s, M€dit€iansan sites €t Corsica,Ssrdinia, ldaltE, t|€ Balearics, Cyprus sre still popular ard inc.Easingly acc€ssiblo with the advent oflow-co6t aidines, hit fieir app€al has diminishod a9 they hEve beco;; over-ioqu€nted, whilst moreexotic log+a.rl al€rn€tives hsys beco.ne afordable. Thi6 is v,,iy Eu.op6 has b€dn omitted from thedestinations so.iion of th€ report, becalse with trt6 possibl€ o(aef'tions of lord diving, wirat€_watchino ardwl€ck diving the r€gion der litfle that is sufficienfly unique t6 attE.t ilong+€ulincoming m€rket

Ih. UK ma*.tPADI _cerlifi€s betre€.t 5O,0m and 60,000 UK m€mbe.B eadt year. The BritBh Sub Aqua Club(8SAC) cedifi€€ €ro@d 100,0m pe@ts e€ch year wortdvride, ;cross its l,2OO brarcfEs and 2OOschoob. BSAC is lhe lqrg€st club in th€ world lvith ov€r 4O,OOO members_

fn a po{ d m,000 vbwers for lho BBC'S 50 ltirgs To h B6tor"- you Die programme screeneq InSeptemb€r Z)O3,

-diving qpear€d twice, and marine activities a tufther tw6 timr-6s, in lhe top 1 O

aspiratioial wishlisl. This urderlines lt|e massive poteniat of divirE in west€m ma.kets, as an activityio be incdporated into holiday plans, or one to totally dominate them. There is certainly a laeenumber of potential first-time divers ammgst the time-rich baby boomer gen€ration.

Fr6uRE 6: 50 thing6 to do beforB you die survey

http://acadernic.mintel-com,/sha.tralmintel,/pri t/id.4429l 2010u2008

, hternational Dving Ma*et - Intemational - Decembe.2003 - Ma*et characteristics pase 3 of3

Poaltson Ac-dvttyI)

4

8

9

10

Swim with DolphlnsS€uba dive on the Great Barrler ReefFly by ConcordeGo whale-watchingDive wlth sharksS|q'divingHot air balloonlngFly tn a ffght€rJetGo on safarlSee the northem lights

IP-9f"-l/9]']!"ry* survwd 2,500 ot jrr l€ad€rs.€gardim destinetions they h6d dived duringurg p€8r lwo y€qr!. Th€ rg3ponl€€ €rs rs@duced b€lq,v.

Fsrn€ 7t at€rmageine d€3thation sllrwy, 208(96)

Dcadn'do|r Foportlon ot rclda vlrfdngUK 75Red Sea 49Medltsrrdn€an 48Carlbbean 25Indlan Ocean 20Far East tzAfrka 10Pacnc 9

8our6: &rr .!dm

I yos E rrFrt dclcs rbout thlr partcular rrpo( pladlo co||tal fi. Mtr{d informafion taam on +1 312-932-0400 int'rc U.6. o. +,1,t (0)2G76(F4000 in t|. UK end tha ialt ot th. rcrtd. or.rn. thafi U into@mintet.com.

htF://academic.mintcl.cotr/sfu at a/mincvDrh tl id=64295 20t02D008

Bibliography

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