GBM Bolt

Justin ForikLisa PsomasRaven Gayle

Emily PotrzuskiThomas Maggio

Table of ContentsI. Expansion IdeaII. GoalsIII. Alignment with GBM IV. SWOT AnalysisV. Industry overviewVI. VideoVII. Market DataVIII. MarketingIX. Race SpecificsX. Race LocationsXI. Points of DifferenceXII. New EmployeesXIII. RevenueXIV. ReebokXV. SalesXVI. Sustainability XVII. Future EndeavorsXVIII. Q & A

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.

Goals

• Create a completely new source of revenue• Increase sales• Increase brand equity

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

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

SWOT AnalysisSTRENGTHS • 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

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

Market Share

70%

27%

3%

Spartan Race, Tough Mudder, Warrior DashOtherGBM Bolt

Target Market

• Male and Female ages: 21-35• Outdoor adventurists • Adrenaline junkies• Fitness fanatics

Marketing

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

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

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

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)

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

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

RevenueYear 1 Year 2 Year 3

Revenue:

Registration $9,000,000 $14,400,000 $23,040,000

Vendor Fees 21,600 36,000 57,600

Total 9,021,600 14,436,000 23,097,600

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) 0 0

Website (15,000) 0 0

Total (4,723,000) (6,899,480) (10,431,947)

Total Revenue 4,298,600 7,536,520 12,665,653

Market Share 3% 5% 7%

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

SalesYear 1 Year 2 Year 3

Sales $300,000,000 309,000,000 324,450,000

Increase 9,000,000 (3%) 15,450,000 (5%) 22,711,500 (7%)

Total 309,000,000 324,450,000 347,161,500

• Sales increase of $47,161,500 over 3 year span• 15.72% increase

Sustainability

• Participation will eventually level off, but still large market

• Become an Olympic sport by 2020-2024• Competitive styles of fitness here to stay

Future Endeavors

• Expand number of races• Sponsorship of OCR athletes• Creation of clothing line (ie. Reebok)

Q & A