Business Summary


TRAK Outdoors Ltd.

Non-Confidential Business Summary - 2015/16

NOTE: This is not an investor presentation. If you wish to receive one, you can make a request.

This non-confidential business summary is intended to provide you with the information you will need to be clear about our business, the opportunities we have, and what we are looking for to exponentially scale our company.

We know we have something special with global market potential. We have built a great foundation. We now seek the assistance, partnerships and tools that will uncover the right people and resources to grow with. 

I invite you to review this and find areas you believe you could work with TRAK in partnership to help build a remarkable global brand. If you do, contact me directly and we will explore this together.

 

Nolin Veillard, President
TRAK Outdoors Ltd. 


Contents:

  1. Introduction
  2. Traction
  3. The Problem
  4. The TRAK Solution
  5. Media and Press
  6. The Big Picture: Global Market Focus
  7. TRAK Target Segments
  8. The Competition
  9. Our Threats
  10. Go-To-Market Strategy
  11. Recent Success
  12. Regional Focus
  13. Key Marketing Challenges
  14. Marketing Assets to Leverage
  15. Key Tools to Build Awareness
  16. Technology and Development
  17. The Milestones
  18. The Team
  19. Our Challenge
  20. What We Need
  21. Funding Strategy
  22. Explore More

 

 


 

INTRODUCTION

 

TRAK customers experience the freedom of being able to travel with a "real" kayak

We manufacture, distribute and sell a product with a unique balance of portability and performance - a 16' sea kayak that packs into a travel golf bag in 10 minutes

We are positioned and now focused on segments of the booming adventure tourism market and outdoor gear markets globally

President is a 15 year entrepreneur and CA, relentless and focused on building the company and brand

Adventure Kayak magazine recently said that, “TRAK’s do-it-all design means it’s truly the only boat you need”

  TRAK seeks to capitalize on a global market, offering customers the perfect combination of benefits in rapidly growing segments.

"The TRAKs are really invaluable. They are very light, they're compact, we can pack them into a skiff or into the float plane, and take them really any place we'd ever need to go."

– Sitka Conservation Society

 


 

TRACTION

Shifted to Direct-to-Consumer model globally in April 2015 and increased online sales in Q2-2015 by 105% vs. Q1-2015 and 93% vs. Q2-2014

Opened sales channels in parts of Europe and Asia

Building a global sales system, leveraging owner/ambassadors for reach in key markets

Established partnership with top outdoor gear manufacturer for scaled, profitable volume and product offerings (they mfg for Arc'teryx, Mountain Hardwear, CamelBak, Patagonia, Kjelti, Gregory, Black Diamond, etc.)

  We have created a foundation poised to scale.

 


 

THE PROBLEM

 

“It’s hard to own a kayak” 

"Buying and owning a kayak should not be this hard"

?  What kayak do I choose

    • So many different choices in the marketplace
    • Have to commit to one design based on single intended use
    • Cost vs. weight vs. durability (plastic vs. fiberglass/composite)

!  I have nowhere to store or stow my kayak

    • Live in a hi-rise apartment downtown
    • Don't have a basement or a garage, or don't want to use space
    • Limited stowage on my sailboat, yacht or RV

 I can't take my kayak with me

    • Can't check-in and fly with my kayak
    • Own a small car, rent Car2Go or use public transit
    • Don't want to buy a roof rack 

 


 

THE TRAK SOLUTION

 

?  What kayak do I choose

 

SOLUTION: Performance - The TRAK kayak can change its shape to accommodate different water conditions and paddler types. It is multi-use and you can grow with it.

 

“It’s truly the only boat you need.”

 

 

How: A shape-shifting engine – the only boat in the world that changes shape to perform in flat or moving water or adapt to beginner or expert paddler skill levels.

AND the TRAK kayak is durable: only one customer has reported puncturing the hull since being on the market. (which supports our 5-year tip-to-tip warranty)

Who Benefits:

  • All Consumer-paddlers: great value proposition, no upgrading required over time, replaces multiple kayaks
  • Retailers/Resellers: one product provides a solution to multiple sales problems, with dropship program
  • Adventure Tour Operators/Outfitters: one kayak serves a wide range of paddler skill levels, from beginner to expert and handle multiple water types/paddling environments

 

!  I have nowhere to store or stow my kayak

 

 

SOLUTION: Packability - The TRAK kayak comes in a rolling travel bag that you can fit into and store anywhere – up an elevator, in a closet, the trunk or backseat of a car or on a sailboat.

How: The 16 foot long (4.88 m) long sea kayak is a skin-on-frame design, like a tent – the skin folds up and the aluminum frame collapses –  so it all fits into a 52" (130 cm) high rolling travel bag. 

Who Benefits:

  • Urban paddlers: no special storage requirements, less room than a mountain bike
  • Tour Operators: no need for special trailers, transport or storage requirements
  • Sailboat/yacht/motorboat owners: stow kayaks under the deck, out of the way

 

 I can’t take my kayak with me

 

 

SOLUTION: Portability - The TRAK kayak comes in a rolling travel bag that can be transported on public transit, bike trailers, small vehicles, boats and planes – then sets up in 10 minutes.

How: The rolling travel bag can be wheeled almost anywhere and checked-in as sports equipment on almost any airline in the world.

Who Benefits:

  • Eco-conscious paddlers: tow behind your bike or hop-on public transit for minimal footprint
  • Adventure Travelers and Tour Operators: travel with performance kayaks to new destinations, opening up business opportunities
  • Anyone who is on the road or lives away from water

 

“Beginners will dig this easy-to-use system; experts will have a field day.”

 

Summary

Game-changer: Single most compelling quality of the TRAK product* is the "functional-technical" features it offers paddlers of any skill level. And you can take it anywhere.

* 80% of TRAK Owners rated the kayak and after sales service as 8 or higher out of 10, in early 2015 survey

 


 

MEDIA AND PRESS

 

“It’s truly the only boat you need.”

 

 

Video Review:  TRAK Seeker Kayak Review

Print Review:  TRAK Seeker ST 16 

 

“For many of these folks, the Seeker is going to be their perfect kayak.” 

Online Review: An independent Playak Review of the TRAK Seeker Kayak

 

“Keeps up with a hard-shell kayak in speed and performance.” 

 

Interview: TRAK Kayaks Designer Nolin Veillard

 

“Beginners will dig this easy-to-use system; experts will have a field day.”

  

“It's a freakin' Transformer!” 

 

 

“But... you can check in a damn kayak.” 

 

 

“A kayak that will revolutionize paddling.” 

 

 

  We are a media attractor intent on creating a media frenzy in our target segments.

 


 

THE BIG PICTURE: GLOBAL MARKET FOCUS

 

USA Market Overview (2013): $200M sales / 235K kayaks sold per year

Global Market: est. $500M sales per year

Principal Sources: Outdoor Industry Association (OIA), National Marine Manufacturer's Assoc. (NMMA) 

 

 TRAK Primary Advantage for URBAN Lifestyle Market: Packability

 TRAK Primary Advantage for Adventure TRAVEL Market: Portability

 TRAK Primary Advantage for OUTDOOR Gear Market: Performance

TRAK's "Sweet Spot" is at the intersection of: URBAN - Higher Density and Compact Lifestyle, TRAVEL - Adventure Travel and OUTDOOR - Outdoor Gear.

TRAVEL - Adventure Travel: $400B per year; Growth: 65% per year

OUTDOOR - Outdoor Gear: $300B per year; Growth: 5% per year

Principal Sources: OUTDOOR - The Outdoor Foundation, Outdoor Industry Association (OIA); TRAVEL - Adventure Travel Trade Association (ATTA)

 


 

TRAK TARGET SEGMENTS

 

The majority of our TRAK Customer Base to date:

Age: 40-65 year olds

Gender: Male 80% Female 20%, Couples

Profile: Professional, Business Owners, Retiring, Empty Nesters, Transitional, Outdoor Lifestyle, Adventure Travellers, Financially Fit or Well-to-do

Lifestyle: Mobile, Travellers, Space issues, Small Vehicles, Eco-conscious

Ethos: “Small and portable is more expansive”

The D2C Segment Opportunities include:

Adventure Traveler

Consummate adventurers, bucket-list

Couples

Young urban couples or empty-nesters

Young Professional

Financially fit, outdoor enthusiasts

Female Paddlers

Independent, adventurous women

Whitewater Transition

Mature paddlers, outgrowing, evolving

The B2B Segment Opportunities include:

Tour Operators

Adventure tour fleets, worldwide  

Paddlesport Retailers

Unique offering, dropship program       

Environmental Groups

Water conservation, eco-charities

Youth Programs

Educational, seasonal, outfitters

 


 

THE COMPETITION

 

The competitive landscape of portable kayaks includes inflatable, folding and skin-on-frame designs:

  

  TRAK offers a strong value proposition for its unique combined benefits.

 

The competitive landscape of hardshell or rigid kayaks comprises four main materials and manufacturing processes:

 

  TRAK is a portable kayak that is as durable and robust as hardshell kayaks, and there is no compromise in performance. We can compete directly with this market.


 

OUR THREATS

 

Market shifted to lower quality, cheaper products since 2008

  TRAK Primary Response: Lowered price point by 20% in March 2015

Alternative technology positioned competitors to reach part of our target markets at lower price points

  TRAK Primary Response: Introduced Financing Program and targeting our value proposition

Folding kayaks are not favoured by specialty paddlesport retailers

  TRAK Primary Response: Moved to Direct-to-Consumer model in April 2015

 

 


 

GO-TO-MARKET STRATEGY

KEY MARKETS: North and South America, UK and Europe, Asia, Australia

Any worldwide destination reached economically by FedEx within 2 - 5 days transit time.

 

PRIMARY STRATEGY: Direct-to-Consumer supported by:

  1. PILOT PROGRAM: Global mobile sales team for demonstrations, events, test-paddles
  2. DROP-SHIP PROGRAM: Paddlesport Dealers do not need to carry inventory, only demos
  3. DISTRIBUTION PROGRAM: in select geographic markets

 

MAKING IT EASY: Three Simple Ways Customers Access TRAK and Buy

  1. FINANCE: Financing Plan for $1,000 down and $100/mo. for 21 months or 90 Day Plan
  2. TRY TRAK: 30 day demonstration period for customer to test-paddle
  3. PURCHASE: Buy retail for $2,799 

 

SECONDARY STRATEGIES:

  1. TOUR OPERATOR PROGRAM: market TRAK fleets to specialty tour operators to outfit or open up new remote destination tour channels
  2. YACHT/SAILING MARKET: market TRAK's stowability and simple set-up benefit to yacht and superyacht chandlers worldwide
  3. RV/OVERLANDER MARKET: develop ways to reach and market to those segments
  4. SPECIALTY: find channels with unique needs that TRAK's value proposition works in and market there

Overall: own the relationship with the customer, driving inspiration to purchase to financing, building a global brand

 

 


 

RECENT SUCCESS

 

Exhibited at Banff Film Festival – November 2014

Differentiated: The only kayak at a world-class event

Targeted: Crowd of financially fit outdoor enthusiasts, adventure travellers, inspired by films

Results: Generated 4 sales and about 20+ qualified leads – team was inundated with engaged visitors

  We are seeking opportunities to find, reach and sell into this segment of the market.

 


 

REGIONAL FOCUS

 

Focus: Pacific Northwest - Seattle launch in 2016, then Portland, SF Bay Area, Vancouver

Target: Financially fit outdoor enthusiasts in hi-density urban demographic

Strategy: Younger demographic, online community of outdoor adventurers, social media savy, local demonstrations and gatherings

  We are piloting a vertically-integrated regionally intensive campaign to "own" paddling in a region. This includes Switzerland focus in 2016.

 


 

KEY MARKETING CHALLENGES

 

What we are working on: Finding and reaching our target customer segments in a scalable manner

OUTREACH  STRATEGIES


We are seeking assistance in uncovering these opportunities and developing the tools and mechanisms to reach them

 


 

MARKETING ASSETS TO LEVERAGE

 

New Website: launched April 2015

The TRAK Files: 6 episode web video series filmed in 9 countries over 3 years

Nobody’s River film: 30 minute short film, featured by National Geographic

Bucket List Kayak Tours: including one week Amazon/Rio Negro tour

Marketing Automation: industry-leading software (InfusionSoft) being implemented 

  TRAK's vault of digital media assets grows stronger, demands a wider audience.

 


 

KEY TOOLS TO BUILD AWARENESS

 

Public Relations: strategies for sharing our story in targeted segments

Community: Owners, TRAK Pilots, Events

Social Media: expanding digital presence and building community

Content Marketing: stories, images, video

Media: film and video

Tours: Adventure Travel - Outdoor crossover

  Tools and pathways need to be leveraged to cause a shift in awareness and the desire factor about TRAK.

 


 

TECHNOLOGY AND DEVELOPMENT

 

Patents: Patented system for tensioning and shape-changing

Assistance: Leveraging Federal and Provincial government incentive programs accessing resources at world class technical colleges

Commercialize: Accessing other Provincial programs to increase commercialization efforts and to develop new products

Roadmap:  Working to extend the technology roadmap to align with opportunities identified through our commercialization process

 

 


 

THE MILESTONES

 

Current Focus (2016): Outreach, Expanding Network, Strategic Partnerships, and accessing Capital for Scaling and Growth

 

 


 

THE TEAM

 

TRAK Team : Efficient, effective team at HQ leverages field members and global agents for results

EXPLORE: Full TRAK Team bios 

Extended TRAK Team: Highly trained, dedicated team at a world-class outdoor gear manufacturer

EXPLORE: Extended TRAK Team blog story 

 

 


 

OUR BIG CHALLENGE

 

What we've proven:
• Can design and produce a world-leading product
• There is consumer-segment demand for the TRAK value proposition

Scale: We are now well positioned to scale

Secret: Our problem is that TRAK is still a well-kept secret – need an exponential growth in awareness and traffic

Strategy: Need to design and implement a series of marketing/outreach strategies to achieve our targets, including regional focus

  

 


 

WHAT WE NEED

 

Find and reach target market segments, outreach strategies and go-to-market implementation support

Access capital and funding to build and scale

Complete technology development to achieve our strategic objectives

Source a steering group, strategic advisors, and Board of Directors for this stage of growth

People with ideas and access to strategies, tools and key partnerships

  

 


 

FUNDING STRATEGY

 

All technology is paid for and in the pack with a clean structure

We now need to access capital for inventory and working capital

We also intend on raising additional equity capital to scale, executing a more rigorous and strategic set of go-to-market strategies

We are currently leveraging a few government-sponsored programs to match against other investment, including a few for 2016

 

To discuss how we may partner, or to request a more comprehensive investor package, please contact us directly:


Nolin Veillard, President / Director
Tel: +1 403 723 0077 ext 3
Email: nolin@trakkayaks.com

 


 

EXPLORE MORE

 

TRAK Kayaks Website 

Social Media - Facebook and YouTube

Partners:

Outdoor Project

Research data reference sources: 

Paddlesport / Kayak Market

Outdoor Recreation and Gear Market

Adventure Travel Market