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Business Plan Presentation. Tyler Hutchens Dave Ryan Gary Tobin Carrie Xing. Agenda. The Problem Giraffe Rack Solution Marketing Strategy Operations Strategy Financial Plan Questions. Bicycle Rack Market trends. SUV Sales are increasing as a percentage of total vehicle sales.

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Tyler Hutchens Dave Ryan Gary Tobin Carrie Xing


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    Presentation Transcript
    1. Business Plan Presentation Tyler Hutchens Dave Ryan Gary Tobin Carrie Xing

    2. Agenda • The Problem • Giraffe Rack Solution • Marketing Strategy • Operations Strategy • Financial Plan • Questions

    3. Bicycle Rack Market trends • SUV Sales are increasing as a percentage of total vehicle sales. • Sales of racks to SUV owners are increasing by 15% annually.

    4. People Want Roof Racks • “Most people would rather use a roof rack, but can’t because of the vehicle size” Bobby Noyes, founder, Rocky Mounts, Inc.

    5. Roof Racks can be tough to use • “I get hurt far more often loading and unloading my bike than riding it.” Pam Simich, Director, VeloNews Magazine. • “I’ve seen people use ladders…” Margaret Principe, Counselor, Englewood High School. • “I constantly struggle to get my bike on and off of my car.” Christy McDevitt, Physician, KaiserPermanente.

    6. Our Solution Get the rack to the bike, not the bike to the rack!

    7. Giraffe Rack Rack Design

    8. Giraffe Rack Rack Design

    9. Giraffe Rack Rack Design

    10. Giraffe Rack Rack Design

    11. Giraffe Rack Rack Design

    12. Giraffe Rack Rack Design

    13. Giraffe Rack Rack Design

    14. Giraffe Rack Rack Design

    15. Giraffe Rack Rack Design

    16. Giraffe Rack Rack Design

    17. Giraffe Rack Rack Design

    18. Giraffe Rack Rack Design

    19. Giraffe Rack Rack Design

    20. Giraffe Rack Rack Design

    21. Giraffe Rack Rack Design

    22. Giraffe Rack Rack Design

    23. Giraffe Rack Rack Design

    24. Giraffe Rack Rack Design

    25. Giraffe Rack Rack Design

    26. Giraffe Rack Rack Design

    27. Innovative Design • Yakima and Thule complementary • No need to design to vehicle types • Easy to use

    28. Marketing Strategy

    29. Market Size • 2005 SUV rack market = $215M • Total Market Potential = $630M

    30. Focused Strategy • Roof rack accessory • Compatible product • SUVs

    31. Customer • Survey Findings • Bike enthusiasts • SUV owners • Women • Vertically Challenged • Already own/shopping for roof rack

    32. Pricing Strategy • MSRP = $150.00 • Retail discount = 45% • 65% surveyed will pay $150

    33. Retailer • Specialty Stores • Good discount for merchant – 45% • Can sell to existing rack customers • Additional installation revenue opportunity

    34. Rollout Year One - Colorado • Great Market! • Most SUVs per capita • High concentration of bicyclists • Wealthiest counties in Rockies • Sales, Sales, Sales

    35. Ongoing Rollout • Year Two • Colorado mountain towns • California, Portland, Seattle • National Rollout in Year Three • 180 stores by Year Five

    36. Brand Image • Targeted Advertising • Print ads, point-of-purchase displays • Guerilla Marketing • Demo units • Events

    37. Giraffe Rack Advertising

    38. Brand Image • Targeted Advertising • Print ads, point-of-purchase displays • Guerilla Marketing • Demo units • Events

    39. Talented Management • Dave Ryan – President • 10 years experience in early-stage companies • Experienced Sales and Marketing Management • Tyler Hutchens – Vice President • 7 years experience in Marketing, Promotion, Operations, Finance • Experience with early-stage companies

    40. Operations Strategy

    41. Operations Plan • Major Features: • Complements Sales and Marketing • Low fixed costs • Outsource

    42. Scope of Operation • Outsource design • Contract out to manufacturers for tooling and production • Minimal assembly and packaging

    43. Key Success Factors • Strong supplier relationships • Strong retailer relationships • Management involvement

    44. Development Timeline • Concept R&D (30 days) • Product Development (55 days) • Product Release to Manufacturing (50 days) • Manufacturing Ramp-up (85 days) Total Duration 220 Days (Dec ’01 – Oct ’02)

    45. Financial Plan

    46. Giraffe Rack Gross Margin • Selling price of $82.50 • Cost of goods sold $41.80 • Our Gross Margin is 49.3% • Outdoor Products average = 38.8% • Higher for Marketing Costs

    47. Giraffe Rack Revenue • 30 retail outlets in Year 1 • Average 100 units per location • Year 1 Revenues = $247,500 • Year 1 Operating Expenses = $182,675 • Year 1 Earnings = ($180,776)

    48. Revenue Growth

    49. Giraffe Rack Cash Flow

    50. Giraffe Rack Cash Flow • Highly seasonal sales • 75% coming between April and September • Cash need early, excess later