Kap7 International, Inc Investment Opportunity Assessment
ASSESSMENT OF KAP7 INTERNATIONAL, INC.
AS AN INVESTMENT OPPORTUNITY
Prepared by:
Alex Elcenko
December 10, 2012
EXECUTIVE SUMMARY
Assessment of KAP7 International, Inc. as an Investment Opportunity
(2012)
OBJECTIVE
The objective of this assessment was to evaluate KAP7 International, Inc. as a potential investment opportunity through primary and secondary research. This opportunity assessment attempts to provide the scope of KAP7’s water polo cap market opportunity analysis, current water polo cap marketing program and partnerships, product technology and overall business model for growth in a niche environment.
FNDINGS
KAP7 International is a privately held company that aims to provide products which promote and advance the game of water polo, as well as supporting the community and culture around the sport. With a strong presence in the water polo community as the result of a few high profile members of their management team, KAP7 has partnered with the governing body for the sport in the United States to provide caps, suits and apparel to the Olympic teams and development program. In addition, the two organizations recently launched a marketing program centered around the water polo cap, which has increased KAP7’s water polo cap sales.
The water polo cap is a Class-1 medical device aimed to prevent injury to players’ ears. Prior to the launch, KAP7 had negotiated long-term licensing rights to market and sell the TURBO brand water polo caps and products in the United States. TURBO brand caps are considered to be the toughest in the world as the result of proprietary material. The market opportunity for water polo caps is strong on a year by year basis given the increasing popularity of the sport, as well as, the fact the cap is a mandatory piece of equipment used during practice and play. KAP7 continues to beat sales forecasts on a quarter by quarter basis and has a strong return on investment (ROI) across product lines, according to
AS AN INVESTMENT OPPORTUNITY
Prepared by:
Alex Elcenko
December 10, 2012
EXECUTIVE SUMMARY
Assessment of KAP7 International, Inc. as an Investment Opportunity
(2012)
OBJECTIVE
The objective of this assessment was to evaluate KAP7 International, Inc. as a potential investment opportunity through primary and secondary research. This opportunity assessment attempts to provide the scope of KAP7’s water polo cap market opportunity analysis, current water polo cap marketing program and partnerships, product technology and overall business model for growth in a niche environment.
FNDINGS
KAP7 International is a privately held company that aims to provide products which promote and advance the game of water polo, as well as supporting the community and culture around the sport. With a strong presence in the water polo community as the result of a few high profile members of their management team, KAP7 has partnered with the governing body for the sport in the United States to provide caps, suits and apparel to the Olympic teams and development program. In addition, the two organizations recently launched a marketing program centered around the water polo cap, which has increased KAP7’s water polo cap sales.
The water polo cap is a Class-1 medical device aimed to prevent injury to players’ ears. Prior to the launch, KAP7 had negotiated long-term licensing rights to market and sell the TURBO brand water polo caps and products in the United States. TURBO brand caps are considered to be the toughest in the world as the result of proprietary material. The market opportunity for water polo caps is strong on a year by year basis given the increasing popularity of the sport, as well as, the fact the cap is a mandatory piece of equipment used during practice and play. KAP7 continues to beat sales forecasts on a quarter by quarter basis and has a strong return on investment (ROI) across product lines, according to