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GBM Bolt Justin Forik Lisa Psomas Raven Gayle Emily Potrzuski Thomas Maggio.

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Presentation on theme: "GBM Bolt Justin Forik Lisa Psomas Raven Gayle Emily Potrzuski Thomas Maggio."— Presentation transcript:

1 GBM Bolt Justin Forik Lisa Psomas Raven Gayle Emily Potrzuski Thomas Maggio

2 Table of Contents I.Expansion Idea II.Goals III.Alignment with GBM IV.SWOT Analysis V.Industry overview VI.Video VII.Market Data VIII.Marketing IX.Race Specifics X.Race Locations XI.Points of Difference XII.New Employees XIII.Revenue XIV.Reebok XV.Sales XVI.Sustainability XVII.Future Endeavors XVIII.Q & A

3 GBM Bolt Inspired by the increasing popularity of obstacle course races, we want to create a branch of GBM that runs and sponsors obstacle course races.

4 Goals Create a completely new source of revenue Increase sales Increase brand equity

5 Who is GBM? Outdoor products retailer that focuses on delivering goods and services of regional interest Strong commitment to the environment and a diverse workforce

6 Alignment With GBM Obstacle races will promote the environment and outdoor activities Participants in these races are members of GBM’s target market Races will bring together a diverse group of people

7 SWOT Analysis STRENGTHS Popularity of competitive fitness Profitability WEAKNESSES Insurance/ injury risks High costs to run race OPPORTUNITIES Enter a rapidly growing industry Potential still untapped Increase sales Charity THREATS Big 3 have 70% of market share Many other smaller scale race companies in market Sustainability

8 Industry Overview Warrior Dash was the first to go big in 2009, Spartan Race and Tough Mudder followed In 2013, about 3.4 million people participated in races worldwide Registration revenue on pace to hit $362 million in 2014 Entry fees range from $65 to $185 Big races can draw 15,000 participants

9

10 Market Share

11 Target Market Male and Female ages: 21-35 Outdoor adventurists Adrenaline junkies Fitness fanatics

12 Marketing GBM Bolt website In store (75 stores) Promotion through social media – Facebook – Twitter – Instagram – Vine – YouTube

13 Race Specifics 18 total races $100 entry 5,000 participants per race 2,000 spectators per race Cash prizes and free giveaways ($5,000 per race) Cost: $200,000 per race

14 Race Specifics Food and drink provided by local vendors ($100 fee, profits are theirs) Free water stations provided by GBM Volunteer based work (free entry fee, lunch, etc.) First Aid Station Team (F.A.S.T) – Provided across the U.S. by American Red Cross – Volunteer based

15 Locations Two races in each city where GBM stores are located (Portland, Boston, NY, Dallas, Miami, and LA) One race in six states viewed as fitting our target market (Vermont, Oregon, Arizona, Utah, Michigan, and South Carolina)

16 Points of Difference Free parking Free spectator entry Established company as backer Support of local vendors Fulfillment of charitable promises – Donate 5% of entry revenue to local state & national parks – Study shows Spartan Race failing to fulfill promised donation amounts

17 New Employees Operations Coordinator ($75,000) Business Analyst ($80,000) Lead Marketer ($63,000) Location/ Event Planner (2) ($50,000) Safety Coordinator ($45,000) Website Content Manager ($55,000) Course Designers (2) ($75,000) *Salaries based off Tough Mudder listings on glassdoor.com

18 Revenue Year 1Year 2Year 3 Revenue: Registration$9,000,000$14,400,000$23,040,000 Vendor Fees21,60036,00057,600 Total9,021,60014,436,00023,097,600 Expenses: Race Expenses(3,600,000)(5,400,000)(8,000,000) Donations (5%)(450,000)(720,000)(1,152,000) Salaries(568,000)(779,360)(1,119,947) Prizes(90,000)(120,000)(160,000) Contingency(150,000)00 Website(15,000)00 Total(4,723,000)(6,899,480)(10,431,947) Total Revenue4,298,6007,536,52012,665,653 Market Share3%5%7%

19 Reebok Began sponsorship with Spartan Race in 2013 4% total increase in sales in 2013 3% increase in Q1 in 2014 7% increase in Q3 in 2014

20 Sales Year 1Year 2Year 3 Sales$300,000,000309,000,000324,450,000 Increase9,000,000 (3%)15,450,000 (5%)22,711,500 (7%) Total309,000,000324,450,000347,161,500 Sales increase of $47,161,500 over 3 year span 15.72% increase

21 Sustainability Participation will eventually level off, but still large market Become an Olympic sport by 2020-2024 Competitive styles of fitness here to stay

22 Future Endeavors Expand number of races Sponsorship of OCR athletes Creation of clothing line (ie. Reebok)

23 Q & A


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