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W.B.T.Y. Bikes “We’re Better Than You”

W.B.T.Y. Bikes “We’re Better Than You”. OFFICES: Headquartered in Los Angeles, CA. Branches in New York, Chicago, and Miami. European offices in Paris, France & Prague, Czech Republic. OUR MISSION: “To get people where they want to go fast, effectively and affordably”. W.B.T.Y. Bikes.

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W.B.T.Y. Bikes “We’re Better Than You”

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  1. W.B.T.Y. Bikes“We’re Better Than You” OFFICES: • Headquartered in Los Angeles, CA. • Branches in New York, Chicago, and Miami. • European offices in Paris, France & Prague, Czech Republic. OUR MISSION: “To get people where they want to go fast, effectively and affordably”

  2. W.B.T.Y. Bikes Board of Directors Arjun Rastogi – Chief Financial Officer Anuja Navaratna – Chief Administrative Officer Jeff Hayes – Chief Marketing Officer William Cunningham – Research & Market Analyst W.B.T.Y.

  3. Our Products Adv2 MOUNTAIN BIKE • Solid steel frame • Award winning brake system • Unmatched comfort W.B.T.Y.

  4. Our Products Coolio YOUTH BIKE • Classic steel frame • Excellent suspension • Affordable Price W.B.T.Y.

  5. Our Products QuickShifta ROAD BIKE • Unmatched Performance • Award winning design • Endorsed by the best • OnStar GPS system W.B.T.Y.

  6. Gauging The Sales Forecast… • Is extremely difficult • May require extensive outside research • Can involve a huge amount of risk • Can make or break a new product • Determines if you hit your target market W.B.T.Y.

  7. Objectives Met(Hitting the target market) • The Advance2 saw 0 lost sales over the six year period. • The QuickShifta also saw 0 lost sales all four years • We also met demand the first three years with our youth bike, Coolio. W.B.T.Y.

  8. Missed Opportunities • Final two years, the Coolio missed production forecasts by 6,299 bikes or $1.6 mil. • We were in a financial position to issue larger dividends to increase shareholder confidence. • Opportunity to redevelop the QuickShifta. W.B.T.Y.

  9. New Product Launchesand Developments • Coolio (2007) • Redeveloped Advance 2 (2007) • QuickShifta (2008) • In 2008 W.B.T.Y. became the first company to introduce an OnStar GPS system standard on all QuickShifta Road Bikes.

  10. PerformanceAn Overview I • TWO DISTINCT STAGES • Stage One 2006-2008 • New Product Launching • Profit Making • Earning revenue for future projects • Brand Promotion • Advertising & PR expenditure • Getting the company’s name out W.B.T.Y.

  11. PerformanceAn Overview I • A PERIOD OF PREPARATION • Identifying our ‘true’ competitors • Adapting to their strategies • Formulate counter-strategies • Increasing production capacity • A PERIOD OF DISCOVERY • Understanding market conditions W.B.T.Y.

  12. Capacity (SCU)2006 – 2008 First Three Years • 2006 – 20,000 • Produced only 1 bike • 2007 – 30,000 • Produced 2 bikes • 2008 – 30,000 • Produced 3 bikes W.B.T.Y.

  13. Production Standards2006-2008 ProductionWastageIdle Time 2006 --- 70% 24% 6% 2007 --- 73% 27% 0% 2008 --- 79% 21% 0% W.B.T.Y.

  14. Operations 2006 - 2008 Efficiency □ 2006 = $150,000 □2007 = $2,500,000 □ 2008 = $1,500,000 Quality □2006 = $150,000 □2007 = $150,000 □ 2008 = $150,000 W.B.T.Y.

  15. BrandingYears 2006 – 2008 • Year 2006 --- Middle of the market • Year 2007 --- Needed to increase to be more competitive • Year 2008 --- Another slight increase to help with release of road bike W.B.T.Y.

  16. Advertisement Years 2006 - 2008 • Year 2006 --- Majority concentrated on Magazine and Television Advertisements • Year 2007 --- Slightly increased • Concentrated more on Television and Magazine • Year 2008 --- Increased again to create more of an interest in the biking community W.B.T.Y.

  17. Product PRYears 2006 - 2008 • Product Public Relations was set and maintained at a low amount for the duration of the first 2 year period • Large increase in 2008 to encompass release of road bike W.B.T.Y.

  18. Stage 1 Budgeting (Advertising and PR) 2006 --- $1,415,000 2007 --- $2,365,000 2008 --- $3,635,000 Branding 2006 --- $500,000 2007 --- $650,000 2008 --- $700,000 Wholesale Sales Revenue 2006 --- $7,078,328 2007 --- $14,245,444 2008 --- $17,127,565 W.B.T.Y.

  19. Stage 1 Profits Earned 1 --- $532,178 2 --- $60,705 3 --- $1,529,105 Cash Reserves 1 --- $4,734,861 2 --- $6,747,068 3 --- $8,560,833 • Formative years --- slow and steady improvement • Trying to carve a niche for WBTY in the market • Need for sound financial decisions • Launch new products to cater to consumer needs W.B.T.Y.

  20. PerformanceAn Overview II • TWO DISTINCT STAGES • Stage Two (2009-2011) • Tweaking expenditure • Release dividends • A PERIOD OF CHANGE • A PERIOD OF ACHIEVEMENT • Plans made were put into action • Hard work pays off W.B.T.Y.

  21. Capacity (SCU)2009 - 2011 □ Year 2009 --- 30,000 □ Year 2010 --- 30,000 □ Year 2011 --- 32,500 W.B.T.Y.

  22. Production Standards2009-2011 Production Wastage Idle Time 2009 --- 73% 27% 0% 2010 --- 78% 21% 1% 2011 --- 75% 19% 6% W.B.T.Y.

  23. Operations 2009 - 2011 Efficiency □2009 --- $0 □2010 --- $650,000 □ 2011 --- $1,500,000 Quality □2009 --- $650,000 □2010 --- $2,000,000 □ 2011 --- $2,000,000 W.B.T.Y.

  24. BrandingYears 2009 - 2011 • Year 2009 --- Remained at $700,000 to retain public standards of new and old products • Year 2010 --- Increased by $50,000 • Year 2011 --- Plateau at $750,000 W.B.T.Y.

  25. Advertisement Years 2009 - 2011 • Year 2009 --- Level off of Advertisement • Sufficient levels to sustain product sales • Year 2010 --- Increase of $100 thousand • Needed to compete with competition • Year 2011 --- Expenses lowered due to advertisement satisfaction W.B.T.Y.

  26. Product PRYears 2009 - 2011 • Product PR did not see an increase until the year 2011 • Increased by $5,000 W.B.T.Y.

  27. Profit Margins and Dealer Support • Profit Margins • Average of 35% for all years • Dealer support • Kept low to create more incentive with profit margins W.B.T.Y.

  28. Stage 2 Budgeting (Advertising and PR) 2009 --- $3,635,000 2010 --- $3,734,999 2011 --- $3,805,000 Branding 2009 --- $700,000 2010 --- $750,000 2011 --- $750,000 Wholesale Sales Revenue 2009 --- $18,953,038 2010 --- $19,663,968 2011 --- $22,537,325 W.B.T.Y.

  29. Stage 2 Profits Earned 2009 --- $3,577,984 2010 --- $3,709,317 2011 --- $5,394,466 Cash Reserves 2009 --- $12,840,041 2010 --- $16,223,933 2011 --- $18,579,456 • Years of Consolidation --- stabilization • Established ourselves in the market • Need for expansion • Record profits • Increased profitability --- care for investors W.B.T.Y.

  30. HIGHLIGHTS(2006 – 2011) • Record Profit ----- $5,394,466 • Never recorded a loss in any single year of running • Current Ratio ----- 7.147 • Earnings Per Share ----- $3.883 • Debt to Equity Ratio ----- 0.14 • Top Market Share ----- 28.0% • Top Wholesale Sales ----- $22,537,325 W.B.T.Y.

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