Date post: | 06-Dec-2014 |
Category: |
Marketing |
Upload: | mattrosenthal |
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THERE’S STANDARD BIKES,
Anna Galian, Keiko Hoen, Sean Mohan, Matt Rosenthal
& THEN THERE’S MONTAGUE THERE’S FOLDING BIKES,
AGENDA
Current SituationProblem StatementDecision Criteria
AlternativesDecision Matrix
RecommendationFinancial BenefitsImplementation
Risks & ContingenciesConclusion
CURRENT SITUATION
Current customers: B2B (auto partnerships and military) & B2C (commuters & travelers)
Industry trends Independent bicycle retailers are consolidatingMass merchandisers and sporting chains are growing
Salesmen lack knowledge and incentive to push Product Life Cycle
Only so much room for growth given limited resources and patented technology
Currently positioned as a “bike that folds”
PERCEPTUAL MAP
Montague
Trek
Dahon
Giant
Specialized
Schwinn
Raleigh
Brompton
Strida
Sinclair
PROBLEM STATEMENT
DECISION CRITERIA
Accelerate Product Adoption
Increased product exposure through various
distribution channels
Increase Montague Brand Awareness
Montague emerge as category leader
Align with Product Associations
Maintain performance and lifestyle perceptions
associated with Montague
Develop Consumer Insights
Learn about consumers to develop products that better suit their needs
ALTERNATIVES
Channel Decision License Decision1. Military – 30% of US Sales
US Licensing Agreement
• May deter some consumers
• Volatile demand
• Difficulty selling due to low-volume
• Reach a wider audience• Diffuse technology more
broadly
• Currently partnered with BMW and Hummer
• Explore other partnerships
• Exclusive License• May charge around
10%• Similar to deal with
Schwinn• Non-Exclusive License
• Multiple companies• May charge around
5%
2. Independent Bicycle Dealers – 30% of US Sales
3. Corporate Partnerships – 30% of US Sales
DECISION MATRIX
Accelerate Product
Adoption
Increase Brand
Awareness
Product Associations
Consumer Insights
Military
Bicycle Dealers
Partnerships
US Licensing
RECOMMENDATION
Sell current products to independent specialty
stores
Sell folding bikes to US Military
Maintain Current Relationships and
sales outlets to sell Montague Products
RECOMMENDATION
REALLOCATE RESOURCES
Travelers
Commuters
RECOMMENDATION
Folding Frame Bicycle Fold is on Seat Tube
• Increase product adoption
• Increase sales volume through mass merchandisers and sporting good chains
FINANCES
Revenue Earned
2007 2008 2009 2010
Total Sales Revenue $19.5 mill
$20.9 mill
$22.4mill $23.95mill
Licensing Revenue $3.1mill $4.3mill $4.5mill $4.6mill
Total Projected Revenue
$22.6mill $25.1mill $26.9mill $28.16mill
% growth in sales volume
IMPLEMENTATION
Developing Corporate Partnerships
Increase Brand Awareness & Product Adoption
US Licensing Agreement with Trek
Increase Product Exposure
Gain Marketing Data
Analyze consumer insights & refine our target market
RISKS AND CONTIGENCIES
CONCLUSION
There’s regular bikes,There’s folding bikes,& then there’s
1. Sustain current practices
2. Seek new partnerships
3. U.S. Exclusive License Agreement
23% Increase in Sales Revenue
$16.5mill in Revenue from Licensing over 4
years
Partnerships:• Reach Travelers and
CommutersU.S. Exclusive License:• Increase product adoption• Mass Merchandisers and
Sports Chains distribution
Montague.
APPENDIX