18_solomon_cases.qxd

2/18/10

4:47 PM

Page 1

Case 6

CASE 6: ATLANTICRIDER.COM
“Opportunities are always there. But only people who are prepared get them. If you are prepared, you are lucky. If you are not prepared, you are unlucky.” —Jane Savoie, U.S. Olympic Equestrian Athlete
AtlanticRider.com has established itself as the most popular website for horse enthusiasts in Atlantic Canada. In the first 10 days of 2004, the Riders’ Forum alone hosted more than 85 000 page views by its 1129 registered members and other visitors (considered “lurkers” because they visit, but don’t post). This is an amazing accomplishment for a site with a target market of approximately 3851 participants who ride and drive about 18 000 horses. The present challenge for the CEO of
AtlanticRider.com is to overhaul the site in a way that meets current challenges and ensures future success (see Exhibit 6-1).

The Initial Business Model
AtlanticRider.com is a web portal serving horse enthusiasts in Atlantic Canada and beyond (see Exhibit 6-2). The site was launched in October 1999 after several months of planning and development. With a newly acquired MBA (in electronic commerce and international business) and 20 years of horse-industry experience, the founder and CEO, Diana Swain, recognized the need for an Atlantic Canadian horse site. She expected it to be well received, based on the rapid growth of the
World Wide Web and the striking similarities in demographics of internet users and horse owners (see Exhibit 6-3).
Initially, the portal blended paid and free services to appeal to individual horse enthusiasts, as well as horse-related businesses (such as stables, tack and equipment stores, insurance agents, and others). Free services to individuals included a discussion board, classified ads, weekly newsletter, featured riders, tributes, and listings of events. Free web design and hosting (five-page sites) were offered to non-profit horse clubs within the region. There were also free reciprocal hyperlinks for those with existing sites to increase the visibility and traffic of
AtlanticRider.com.

Exhibit 6-1 ATLANTICRIDER.COM STATISTICS
Site Traffic in Page Views, October 1999 to December 2003
Year
1999 (Fourth
Quarter only)
2000
2001
2002
2003

Average/Month
66 024
224 701
298 896
906 347*
1 286 279

* Estimated due to problems with monitoring software.
Detailed Statistics as of January 2004
86 373 page views (first 10 days in 2004)
9 forums
1129 registered members
223 paid classified subscribers
25 paid hyperlinks from front page ($120 each)

Year Total
198 072
2 696 421
3 586 763
10 876 164*
15 435 350

1

18_solomon_cases.qxd

2/18/10

4:47 PM

2

Page 2

Case 6

Exhibit 6-2 ESTIMATED NUMBER OF HORSES PER PROVINCE
Province

Canada

Estimated # of Participants

Average # of Horses per Owner

Estimated # of Horses

% of
National
Total

Horses on
1996
Census Farms

% of
National
Total

110 574

—

886 431

100%

443 889

100%

British Columbia

19 754

5.74

113 387

12.79%

49 305

11.11%

Alberta

20 101

15.38

309 146

34.88%

149 960

33.78%

Saskatchewan

13 035

9.47

123 441

13.93%

66 372

14.95%

7 143

5.99

70 786

7.99%

68 783

15.5%

Ontario

36 875

5.12

188 800

21.30%

76 553

17.24%

Quebec

9 815

6.42

63 015

7.11%

25 108

5.70%

New Brunswick

2 183

4.89

10 677

1.20%

2 757

0.62%

346

4.43

1 534

0.17%

1 869

0.42%

1 083

4.60

4 982

0.53%

2 907

0.65%

239

2.78

664

0.07%

275

0.06%

Manitoba (adjusted for
PMU farms)

Prince Edward Island
Nova Scotia
Newfoundland and Labrador

Source: Adapted from 1998 National Horse Industry Study/Étude de l’industrie canadienne du cheval 1998 (Table 3.3: Estimated Number of Horses per Province). Accessed at www.equestrian.ca/EC/EC_HIC_IR_1998Study_Table3-3.shtml on January 26, 2004.

Exhibit 6-3 DEMOGRAPHIC CHARACTERISTICS OF HORSE OWNERS
The Canadian Horse Industry (1998 Equine Canada Study)
•
•
•
•
•
•
•
•
•
•
•
•
•
•

880 000 horses in Canada with 110 000 owners
More than 1.3 million people ride each year (riding lessons, competition, trail rides, etc.)
Average investment of $1700 per horse
Average investment in tack and equipment: $1500 per horse
77 percent female
Median age: 40–49 years
60 percent attended college or university
Usually more than one rider per “horsehold”
83 percent have been riding/driving for 10+ years
93 percent own another pet
68 percent to 70 percent own a computer
47 percent use the internet; 86 percent of those research horse-related information Estimated total economic impact: $2.1 million–$4.7 billion
“Normal” household incomes for horse owners: $40 000–$60 000 per year

18_solomon_cases.qxd

2/18/10

4:47 PM

Page 3

Case 6

3

The initial business model offered web design and hosting services to horserelated businesses. In 1999, very few horse-related businesses had existing websites, and only the early adopters were motivated to navigate the information highway. As the site grew, however, business owners began to feel the pressure to affiliate with the site, whether they chose a hosting package with AtlanticRider.com or purchased a hyperlink to their existing site. As a result, the number of purchased hyperlinks to existing websites began to grow. The hyperlink package offered (and continues to offer) a link from the front page, a link from the business’s free directory listing, and a profile in the regular e-zine, called e-Rider (see Exhibit 6-4).
Stallion owners were offered the opportunity to promote their stallions on the site through a customized “one-page site” that included up to two photos, an extended pedigree (ancestry), text, and contact information. Finally, business owners could choose to advertise on AtlanticRider.com’s front page in the form of a banner or block ad (see Exhibit 6-5).

Exhibit 6-4 NUMBER OF E-RIDER SUBSCRIPTIONS e-Rider Subscriptions

Number of Subscribers

1400
1200
1000
800
600
400
200

Date

Exhibit 6-5 PRICE SCHEDULE FOR ADVERTISING
Front-page ad (one month)
Same ad (subsequent months)
Hyperlink from front page (yearly)
Stallion advertising (yearly)
Website hosting (yearly)
Domain forwarding (yearly) e-Rider sponsorship (issue)
Classified subscription (yearly)

$150.00
$100.00
$120.00
$120.00
$300.00
$120.00
$50.00
$24.50

01/11/03

01/08/03

01/05/03

01/02/03

01/11/02

01/08/02

01/05/02

01/02/02

01/11/01

01/08/01

01/05/01

01/02/01

01/11/00

01/08/00

01/05/00

01/02/00

01/11/99

0

18_solomon_cases.qxd

2/18/10

4:47 PM

4

Page 4

Case 6
The website itself was designed with best practices in mind. A professional appearance, ease of navigation, and simplicity of design were of paramount importance to attract visitors who were new to the web. Frequent site updates and changes were implemented to keep visitors coming back, and the weekly e-zine kept visitors apprised of upcoming events, new classified ads, and news that had been added to the site. The initial components of the site included Rider of the
Week; Show Results; Upcoming Events; Local, National, and International News; a weekly e-zine (e-Rider); Kids’ Pages; a directory of horse-related businesses in the region; Tributes; Photo Gallery; and Stallion Barn.
The success of AtlanticRider.com can be attributed in large part to the marketing strategy that was employed even before the site launched in October 1999. The choice of name was strategic and aimed to appeal to an Atlantic Canadian audience, while not conflicting with any existing business in Canada to facilitate national incorporation. A graphic artist was hired to create a logo that would not exclude any type of rider or riding discipline.
The promotion strategy began with ads in the “Horses & Equipment” and
“Livestock” sections of major newspapers in the four Atlantic provinces (New
Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland) and was supplemented with other promotional activities. Registration with search engines was a key element in ensuring that surfers could find the new site. (The site was optimized for search engines through strategic choice of design features and keywords.) Free components, such as classifieds and horse-club sites, also helped to generate traffic.
These efforts were augmented with participation at trade shows and the creation of a booth that included a cart, banner, and computer with the new site available for surfing. Promotional materials distributed at these events included business cards, notepads, and tri-fold brochures—each with the site address and benefits clearly identified. Contests at trade shows and on the site included draws for AtlanticRider.com baseball hats, horse-oriented books, and a toy stable.

Changes to AtlanticRider.com
The skeleton of the site has remained essentially stable since its initial launch, with minor changes that included discontinuing the kids’ pages, which were not receiving significant traffic. Software has been added to the site to make it more userfriendly for visitors and site administrators; automated classified ad software (to replace the original practice of posting ads manually with one that allows users themselves to post ads, including photos); bulletin-board software; newsletter distribution service; and a real-time chat room. A domain-forwarding service has been employed so that hosted sites can choose their URLs (for example, www. mystable.com), while still enjoying the benefits of hosting within AtlanticRider.com.
The weekly schedule for e-Rider has been changed to a monthly schedule to reduce the time required for publication, and Rider of the Week has been changed to Rider of the Month. The most recent change to the business model occurred in September
2002, when the site began charging for classified subscriptions. Advertisers now pay a yearly fee to post their ads on the site.

Current Challenges
The company is now facing a number of challenges to its continued success. After four years, the site is in need of an overhaul—a new look and feel to keep it fresh.
Keeping the content current is very labour intensive and challenging, especially for a company of this size. The company must constantly battle the persistent attitude that services on the internet should be free, and it faces potential competition from sites offering free classifieds.

18_solomon_cases.qxd

4/17/10

9:20 AM

Page 5

Case 6

QUESTIONS
1.
2.
3.
4.

What is the nature of the market segment(s) served by AtlanticRider.com?
How well does AtlanticRider.com serve its market segment(s)? How much is this service worth to the segment(s)?
How well does AtlanticRider.com do relative to its competitors?
What must AtlanticRider.com do to overhaul the website?

© 2004 Donna Sears, Acadia University. This case is based on a real situation and written for the sole purpose of providing material for class discussion. It is not intended to reflect either effective or ineffective marketing solutions. Only the identity of the CEO is disguised.

5