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Malcolm Brown Kendall cook James Iwayemi Tekiah Banks Sam Rhodes Quality experience with quality prices Quality products That provide a quality experience.

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Presentation on theme: "Malcolm Brown Kendall cook James Iwayemi Tekiah Banks Sam Rhodes Quality experience with quality prices Quality products That provide a quality experience."— Presentation transcript:

1 Malcolm Brown Kendall cook James Iwayemi Tekiah Banks Sam Rhodes Quality experience with quality prices Quality products That provide a quality experience.

2 Company history Problem: SIUE transportation is not always reliable and having a car is not an option for everybody. Additionally, Health is ignored on campus. Solution: create a bike company with affordable pricing for college students. Company was founded by 5 SIUE students. Purpose: to provide another mode of transportation for students and to encourage a healthy life style.

3 Core competencies Better pricing Better pricingConvince Better bike services than our competition. Bike rentals

4 Company's Goals Mission: Bikes “R” US mission is to provide quality service in the realm of bikes and bike repairs. To help provide another source of transportation for the college students who cannot drive as well as provide quality reasonably priced bikes and bike accessories.

5 Financial Goals Achieve break-even at the end of our first year of operation. Increase in our profit margin by 4% annually. Achieve profitability within two years of operation. Reduce costs by 2%.

6 Budget, Schedule & Monitoring According to NBDA (National Bicycle Dealers Association) (www.nbda.com) the average bicycle retailer has gross sales of $500,000 annually and an average profit of $25,000. Bike sales accounted for 47% of the gross sales revenue, while parts and accessories accounted for 35.1%, bike repair accounted for 11.4%, Bike rental for 1.6%, and the “other” category (which includes the sale of fitness equipment) accounted for 4.9% of sales revenue.www.nbda.com Our sales forecast is based off the information from the National Bicycle Dealers Association.

7 Quarterly Sales Forecast for Bikes ‘R’ Us

8 Strengths Production Variety Production Quality Resoanable Pricing Leading Brands Opportunities Add to production line Increace market share Threats Competition with rival Entry of new competitors Weaknesses Low cash assets Lack of reputation Lack of management depth SWOT ANALYSIS Bikes ”R” Us

9 Target Market Active consumers between the ages of 16 and 45 Active consumers between the ages of 16 and 45 Enjoy Cycling Enjoy Cycling Low income college students Low income college students Ewdarsville and Glen Carbon area Ewdarsville and Glen Carbon area

10 Marketing Mix: Promotion. Flyers throughout campus. Handbills. Community bike race. Social Networks. Television Advertisement.

11 Marketing Mix: pricing Reasonably priced for the struggling college student. SIUE students receive a 15% discount on bike purchases. BMX bikes will begin at right under $300 and will go as high as $900

12 Marketing Mix: Product Broad product line. Ranges from bike accessories to bike rentals and from bike rentals to bike repairs. Plan to expand off campus.

13 Marketing Mix: Distribution Marketed locally on SIUe campus Plans to expand regionally. Make purchases available online.

14 Competition Only competitor is the Cyclery. Bicycles are priced higher at the Cyclery. Plan to partner with SIUe rental bikes.


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