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Assignment 4

Business Plan
Created by Truc Nguyen on May 1, 2009

Overview
In the vastness of the internet, there are very few sites devoted to kite flying. Within the Kite Flying Society and in general, many people who are of college age often say "Wow, I haven't flown a kite since I was 10". The Kite Flying Society seeks to revive what may be a lost art or a dying activity in the face of competition with new diversions such as video games. We also want to remove the social stigma that certain activities such as kite flying are "just for kids". The website format makes it easier to disseminate information and reach a wider audience beyond that of Stanford students. The reader benefit from having the information need to start doing this activity, if they choose, to promote it locally. In (re)introducing people to kite-flying, we hope that they gain enjoyment from kite flying or just reading the articles about kite history.

Target Market
There are two markets the site aims to appeal to: one is Stanford students or other affiliated members of the University, and the other is casual readers who are lack familiarity with kite flying but are open to learning about it. We try to appeal to Stanford students in order to recruit new members for our club, ensuring its long-term survival, which in turn allows the site to keep running under new hands. The other market is for people who might not know or considered kite flying. The website is designed to be a user-friendly guide in getting started and has information about beginner's techniques. As they progress in their abilities, they can read up on more advanced kite flying techniques such as kite fighting or flying kites with multiple lines. The information about kite history is meant as an interesting diversion for people who already know the beginner information. It can also enable the lay reader to be interested in kites initially before developing this interest into an activity (i.e. actionable information).

Marketing Plan
To better publicize my site without spending a lot of money, I will rely on viral marketing. Traditional means would include word of mouth promotion by the members of the Kite Flying Society and posting flyers in residential areas on campus and popular hangouts such as White Plaza. Additionally, we would try to have a publication, such as the Stanford Daily, write about us and our aims. Ways we could promote our site through the web include having a monthly email newsletter to retain readership, listing the website in online directories. We could also approach other websites in the same niche about an affiliate program in which we could share links. Lastly, we would turn our attention to the social networking platforms by creating a Facebook group and page, which members would invite other people to join. We would also start at Twitter account to keep people as up to date as possible.

Competition
Although there are random webpages about kite flying, there are few sites devoted to only this activity. Most of the time kite flying is a subpage in a site about recreational activities. The market is relatively untapped save for is one main competitor, which is the American Kitefliers Association. They have information about basic kite flying, a forum, an event calendar and a traditional magazine. They charge membership dues to be part of the site and promote exchange between members. We do not wish to charge a membership fee, but will consider implementing some of their ideas such as the calendar.

Features/Organization
The website will be built with three purposes in mind: 1) to educate people about the kite throughout history, 2) to teach people the joys of kite-flying, 3) to facilitate the administration of the Stanford chapter of Kite Flying Society. Thus, the three sections are the following (As detailed in Assignment 2)
Content

  1. Information on the significance of kites in society
    1. Give a brief history of the kite, when it was invented, how it has evolved and the different types of kites there are.
    2. Uses of the kite ranging from recreational, military, scientific, and artistic.
    3. The culture of kite-flying. (Ex: kite-fighting in India)
    4. Kites in popular culture. Is the story about Benjamin Franklin discovering electricity while flying a kite really true? (and similar articles)
  2. How to get involved in kite-flying
    1. How to make your own kite or where to buy one.
    2. Virtual kite designer: you can create and decorate your own custom kite.
    3. A beginner's guide to flying a kite.
    4. Often overlooked, but necessary kite safety considerations.
    5. Expert tips on kite-flying. (Will gather from magazines, etc)
    6. How to start a kite-flying society chapter.
  3. Stanford Kite-Flying Society specifics
    1. History and inspiration
    2. Announcements and meeting information
    3. Member bios
Hopefully, the articles about the history and uses of kites and kites in the news will arouse people's interest in kites, which will lead to wanting to get involved. For this purpose, there will also be a page devoted to why kite-flying is a worthwhile activity aimed towards inspiring people to fly kites, after which they can go to our how-to guide to gain information on the process. There will also be do-it-yourself (DIY) manuals on personalizing and creating your own kite and shopping guides for those less inclined to DIY. The website will be a useful tool for the Stanford chapter as it will help the club communicate with its members and be more organized.

Implementation
The website will be built on Google Sites. I will design the website and gather information from the internet and print sources, including books and periodicals, especially hobby magazines. I will synthesize the information into a more reader-friendly guide that breaks down the art of kite flying step-by-step. For the historical or cultural articles, I will write with a more informal style meant to entertain readers. There will also be a discussion forum for members to interact. The site will also include an anonymous feedback box as we are always trying to improve.

Costs
The start-up costs for running the website are relatively low. Since the website is being hosted on Google Sites, there is no cost for hosting. The only cost incurred is the time spent creating the website, which represents an opportunity cost for the creator (me), which I would value at $11 an hour, how much a job at Stanford pays. I expect to put a substantial about of work into this site 45-50 hours for the quarter, rounding out the start-up cost about $500. Maintenance costs would be insubstantial as it would be strictly volunteer work by the members of the Kite Flying Society to keep the site up to date. Bandwidth costs would increase as the site gains popularity, but this will be offset with revenue (which will also increase as the site increases in popularity) detailed in the financial model.

Financing Model
Although the website is mainly informative and not meant to be a for-profit business, there are a couple ways it can generate enough income for it to stay afloat. The OSA grants student organizations a small amount of money each year, which we will be frugal in spending. If necessary, we would apply for Special Fees from the ASSU. The source of income I will rely on is to use Google AdSense which displays target ads. Google AdSense does not disclose the revenue share, but one can expect to earn $0.02-$0.15 cents from each visitor. The site would need to attract 6000 visitors to break even. Selling branded merchandise such as t-shirts, thermal sweaters, and coffee mugs (not actual kites) would also be a way to generate income without diminish the credibility of the site. We would run the store through CafePress where prices would be set such that we earn a 20% profit margin. It would be made clear that the purpose of a store would to support the site as a non-profit entity. Lastly, if people do not wish to buy merchandise, they can make a small donation through PayPal if they would like.

Possible Problems
The main concerns are a failure to attract people to the site, maintaining a readership and in room for expansion. Due to the nature of the content, there will be difficulty in presenting the historical articles in an interesting but also informative and scholarly way. In regards to the "get involved" portion of the site, the actual activity of kite flying remains largely the same. The techniques have not changed, so it will be difficult to expand on that. Coming up with new content to satisfy readers who have visited the site before will also prove to be a challenge. People may initially be interested, but the site might lose its novelty appeal after a few viewings if we do not provide new information.