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The Wedgeys Inc.

The Wedgeys Inc. “The Wedgey you can work with”. The Wedgeys Inc.

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The Wedgeys Inc.

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  1. The Wedgeys Inc.

  2. “The Wedgey you can work with”

  3. The Wedgeys Inc. Our mission is to provide you with a top of the line golf club that will grow with your child. We work hard to make a product that will engage your child at a young age and promote an active lifestyle. We will maintain an eco-friendly organization because in golf we go green.

  4. Target Market Families with children First-time golf players Middle-class families Southern states

  5. Organizational Values • Green orientation: recycled graphite materials, recycling program for used Wedgey golf clubs • Active family lifestyle • Made in America: headquarters and manufacturing plant located in Lubbock, TX • Influencing new players to join the United States Golf Association (USGA)

  6. Where did Wedgey originate? • Create a product for an active family • Affordable product • One golf club that can be used for several years • A product that appeals to children and adults

  7. The Wedgey The purchase of one Wedgey golf club includes: One grip Four extenders for shaft One golf club head Optional customized grip

  8. Recommended Wedgey Series

  9. Customer Benefit Package

  10. Customer Benefit Package cont. Optional: customizable grip Recycling Program Return Wedgey after child has outgrown it Customer will receive 10% off next Wedgey purchase • Online Custom Wedgey Builder • Following options available: • Color • Pattern • Matching golf club headcover with purchase of customized grip

  11. Break Even Timeline • Production begins January 13, 2014 • Product release date is February 21, 2014 • Expected break even date is December 2015

  12. Strategy Development • Survey of 50 local adults • 43 had young children (86%) • Survey questions and results: • How often do you golf with family? • 48% yearly, 40% monthly, 4% weekly, 8% never • If you have children, do they own golf clubs? • 54% yes, 32% no, 14% n/a • Would you purchase and introductory golf club for children? • 72% yes, 14% no, 14% n/a • Do you play golf during a particular season? • 16% winter, 28% spring, 32% summer, 24% fall

  13. Survey Results

  14. Viable Product • Can be used over time as it adjusts to the child's increasing height • Green orientation • Recyclable program that offers discount towards future purchases • Option to customize product

  15. Order Winner Saves families money by avoiding the purchase of multiple golf clubs as the child grows

  16. Competition and Threats Competitors Maintain Viability Patent our product design Continue to be innovative Maintain a reasonable price Reflect organizational values • Nike Golf • Titleist • Callaway • TaylorMade Golf • Williams Sports • Wilson Golf • Ping Golf

  17. Competitive Priorities Innovation Low Cost Good Quality Flexibility Eco-friendly

  18. Core Competencies • Strong research and development team • Recyclable materials for production purposes • Use of graphite and stainless steel • Customization of grips

  19. Maintaining Core Competencies • By offering the recycling program we encourage the return of old products to be used for new products • Decreasing purchase of additional raw materials • Providing a comfortable work environment to stimulate efficiency and creativity among our employees • Continually update website to offer the customization options to our customers

  20. Testing Stages • Developed multiple models • Tested each model for • Weight • Flex • Balance • Ease of use • Performance • Solidified an appealing design

  21. Product Design Raw Materials Major Equipment Clubmaking automated machine customized for the use of Wedgey extendable shaft Graphite Casting Mold Machine for creating extenders • Graphite • Synthetic rubber composite • Stainless steel

  22. Forecasting Competitor: Nike Revenue of Last 5 Years • Leading brand in sports equipment including golf

  23. Nike 5 Year Revenue and Forecast

  24. Wedgeys Inc. Forecast Percentage of Nike Sales Wedgeys Inc. Forecasted Sales • Calculated Percentage: • %0.0065 • 15% Nike’s sales are golf related

  25. MAD and Tracking Signal *Seasonality is not applicable.

  26. Fixed Costs

  27. Variable Costs

  28. Selling Price • Wedgey price WITHOUT customization: $145.00 • Wedgey price WITH custom grip: $165.00 • Expect 50% of consumers to purchase custom grip • Average selling price per Wedgey: $155.00 • Average Selling Price = $145 (50%) + $165 (50%)

  29. Break Even Analysis • Break even quantity = [$1,680,000 / ($155 - $45)] + [$1,702,000 / ($155 - $45)] = 30,746

  30. Break Even Timeline • 15,699 / (15797/12) = 11.926 • Break even point is December of 2nd Year

  31. Production Capacity • Plan to operate at a 80% production capacity and a 20% safety capacity • 20% safety capacity allows us to expand on production if needed, but with an increase in capital we expect to have an increasing production capacity every year while maintaining a reasonable safety capacity

  32. The Future of the Wedgey • Wedgeys Inc. is based out of Lubbock, TX and serving Southern region • Wedgey is available for purchase online and at the following retailers: • Big 5, Academy, Sports Authority, and Dicks • We plan to expand to other regions and extend our product line to various types of clubs and other golf related items

  33. Thank You! Questions?

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