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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. - PowerPoint PPT Presentation
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W.B.T.Y. BikesW.B.T.Y. Bikes“We’re Better Than You”“We’re Better Than You”
OFFICES:OFFICES:Headquartered in Los Angeles, Headquartered in Los Angeles, CA.CA.
Branches in New York, Chicago, Branches in New York, Chicago, and Miami.and Miami.
European offices in Paris, France European offices in Paris, France & Prague, Czech Republic.& Prague, Czech Republic.
OUR MISSION:OUR MISSION:““To get people where they want to To get people where they want to
go fast, effectively and affordably”go fast, effectively and affordably”
W.B.T.Y. BikesW.B.T.Y. BikesBoard of DirectorsBoard of Directors
Arjun Rastogi – Chief Financial OfficerArjun Rastogi – Chief Financial Officer
Anuja Navaratna – Chief Administrative OfficerAnuja Navaratna – Chief Administrative Officer
Jeff Hayes – Chief Marketing OfficerJeff Hayes – Chief Marketing Officer
William Cunningham – Research & Market AnalystWilliam Cunningham – Research & Market Analyst
W.B.T.Y.
Our ProductsOur Products
Adv2 MOUNTAIN BIKEAdv2 MOUNTAIN BIKE Solid steel frameSolid steel frame Award winning brake systemAward winning brake system Unmatched comfortUnmatched comfort
W.B.T.Y.
Our ProductsOur Products
Coolio YOUTH BIKECoolio YOUTH BIKE Classic steel frameClassic steel frame Excellent suspensionExcellent suspension Affordable PriceAffordable Price
W.B.T.Y.
Our ProductsOur Products
QuickShifta ROAD BIKEQuickShifta ROAD BIKE Unmatched PerformanceUnmatched Performance Award winning designAward winning design Endorsed by the bestEndorsed by the best OnStar GPS systemOnStar GPS system
W.B.T.Y.
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.
Objectives MetObjectives Met(Hitting the target market)(Hitting the target market)
The The Advance2 Advance2 saw 0 lost sales over the six year saw 0 lost sales over the six year period.period.
TheThe QuickShifta QuickShifta also saw 0 lost sales all four years also saw 0 lost sales all four years
We also met demand the first three years with our We also met demand the first three years with our youth bike, youth bike, CoolioCoolio..
W.B.T.Y.
Missed OpportunitiesMissed Opportunities
Final two years, the Final two years, the CoolioCoolio missed production missed production forecasts by 6,299 bikes or $1.6 mil. forecasts by 6,299 bikes or $1.6 mil.
We were in a financial position to issue larger We were in a financial position to issue larger dividends to increase shareholder confidence.dividends to increase shareholder confidence.
Opportunity to redevelop the Opportunity to redevelop the QuickShiftaQuickShifta. .
W.B.T.Y.
New Product LaunchesNew Product Launchesand Developmentsand Developments
CoolioCoolio (2007) (2007)
Redeveloped Redeveloped Advance 2Advance 2 (2007) (2007)
QuickShiftaQuickShifta (2008) (2008)
In 2008 W.B.T.Y. became the first company to introduce In 2008 W.B.T.Y. became the first company to introduce an OnStar GPS system standard on all an OnStar GPS system standard on all QuickShiftaQuickShifta Road Bikes.Road Bikes.
PerformancePerformanceAn Overview IAn Overview I
TWO DISTINCT STAGESTWO DISTINCT STAGES Stage One 2006-2008Stage One 2006-2008
New Product LaunchingNew Product Launching
Profit MakingProfit Making Earning revenue for future Earning revenue for future
projectsprojects
Brand PromotionBrand Promotion Advertising & PR expenditureAdvertising & PR expenditure Getting the company’s name Getting the company’s name
outout
W.B.T.Y.
PerformancePerformanceAn Overview IAn Overview I
A PERIOD OF PREPARATIONA PERIOD OF PREPARATION Identifying our ‘true’ competitorsIdentifying our ‘true’ competitors Adapting to their strategiesAdapting to their strategies Formulate counter-strategiesFormulate counter-strategies Increasing production capacityIncreasing production capacity
A PERIOD OF DISCOVERYA PERIOD OF DISCOVERY Understanding market conditionsUnderstanding market conditions
W.B.T.Y.
Capacity (SCU)Capacity (SCU) 2006 – 20082006 – 2008
First Three YearsFirst Three Years
2006 – 20,0002006 – 20,000Produced only 1 bikeProduced only 1 bike
2007 – 30,0002007 – 30,000Produced 2 bikesProduced 2 bikes
2008 – 30,0002008 – 30,000Produced 3 bikesProduced 3 bikes
W.B.T.Y.
Production StandardsProduction Standards2006-20082006-2008
ProductionProduction WastageWastage Idle TimeIdle Time
2006 ---2006 --- 70% 70% 24% 24% 6% 6%
2007 ---2007 --- 73% 27% 73% 27% 0%0%
2008 ---2008 --- 79% 21% 79% 21% 0%0%
W.B.T.Y.
Operations Operations 2006 - 20082006 - 2008
Efficiency Efficiency
□□ 2006 = $150,0002006 = $150,000
□□ 2007 = $2,500,0002007 = $2,500,000
□□ 2008 = $1,500,0002008 = $1,500,000
Quality Quality
□□ 2006 = $150,0002006 = $150,000
□□ 2007 = $150,0002007 = $150,000
□ □ 2008 = $150,0002008 = $150,000
W.B.T.Y.
BrandingBrandingYears 2006 – 2008Years 2006 – 2008
Year 2006 --- Middle of the marketYear 2006 --- Middle of the market
Year 2007 --- Needed to increase to be more Year 2007 --- Needed to increase to be more competitivecompetitive
Year 2008 --- Another slight increase to help with Year 2008 --- Another slight increase to help with release of road bikerelease of road bike
W.B.T.Y.
Advertisement Advertisement Years 2006 - 2008Years 2006 - 2008
Year 2006 --- Majority concentrated on Magazine and Year 2006 --- Majority concentrated on Magazine and Television AdvertisementsTelevision Advertisements
Year 2007 --- Slightly increasedYear 2007 --- Slightly increased Concentrated more on Television and Magazine Concentrated more on Television and Magazine
Year 2008 --- Increased again to create more of an Year 2008 --- Increased again to create more of an interest in the biking communityinterest in the biking community
W.B.T.Y.
Product PRProduct PRYears 2006 - 2008Years 2006 - 2008
Product Public Relations was Product Public Relations was set and maintained at a low set and maintained at a low amount for the duration of the amount for the duration of the first 2 year periodfirst 2 year period
Large increase in 2008 to Large increase in 2008 to encompass release of road bikeencompass release of road bike
W.B.T.Y.
BudgetingBudgeting (Advertising and PR) (Advertising and PR)2006 --- $1,415,000 2007 --- $2,365,000 2008 --- $3,635,0002006 --- $1,415,000 2007 --- $2,365,000 2008 --- $3,635,000
BrandingBranding2006 --- $500,000 2007 --- $650,000 2008 --- $700,0002006 --- $500,000 2007 --- $650,000 2008 --- $700,000
Wholesale Sales RevenueWholesale Sales Revenue2006 --- $7,078,328 2007 --- $14,245,444 2008 --- $17,127,5652006 --- $7,078,328 2007 --- $14,245,444 2008 --- $17,127,565
W.B.T.Y.
Stage 1Stage 1
Profits Earned1 --- $532,178 2 --- $60,705 3 --- $1,529,1051 --- $532,178 2 --- $60,705 3 --- $1,529,105
Cash Reserves 1 --- $4,734,861 2 --- $6,747,068 3 --- $8,560,8331 --- $4,734,861 2 --- $6,747,068 3 --- $8,560,833
Formative years --- slow and steady improvement Formative years --- slow and steady improvement Trying to carve a niche for WBTY in the marketTrying to carve a niche for WBTY in the marketNeed for sound financial decisionsNeed for sound financial decisionsLaunch new products to cater to consumer needsLaunch new products to cater to consumer needs
W.B.T.Y.
Stage 1
PerformancePerformanceAn Overview IIAn Overview II
TWO DISTINCT STAGESTWO DISTINCT STAGES Stage TwoStage Two (2009-2011) (2009-2011)
Tweaking expenditureTweaking expenditure Release dividendsRelease dividends
A PERIOD OF CHANGEA PERIOD OF CHANGE
A PERIOD OF ACHIEVEMENTA PERIOD OF ACHIEVEMENT Plans made were put into actionPlans made were put into action Hard work pays offHard work pays off
W.B.T.Y.
Capacity (SCU)Capacity (SCU) 2009 - 20112009 - 2011
□ □ Year 2009 --- 30,000Year 2009 --- 30,000
□ □ Year 2010 --- 30,000Year 2010 --- 30,000
□ □ Year 2011 --- 32,500Year 2011 --- 32,500
W.B.T.Y.
Production StandardsProduction Standards2009-20112009-2011
Production Wastage Idle Time
2009 --- 2009 --- 73% 73% 27% 27% 0%0%
2010 ---2010 --- 78% 78% 21% 21% 1%1%
2011 ---2011 --- 75% 75% 19% 19% 6%6%
W.B.T.Y.
Operations Operations 2009 - 20112009 - 2011
EfficiencyEfficiency□□ 2009 --- $02009 --- $0□□ 2010 --- $650,0002010 --- $650,000□□ 2011 --- $1,500,0002011 --- $1,500,000
QualityQuality□□ 2009 --- $650,0002009 --- $650,000□□ 2010 --- $2,000,0002010 --- $2,000,000□ □ 2011 --- $2,000,0002011 --- $2,000,000
W.B.T.Y.
BrandingBrandingYears 2009 - 2011Years 2009 - 2011
Year 2009 --- Remained at $700,000 to retain public Year 2009 --- Remained at $700,000 to retain public standards of new and old productsstandards of new and old products
Year 2010 --- Increased by $50,000 Year 2010 --- Increased by $50,000
Year 2011 --- Plateau at $750,000Year 2011 --- Plateau at $750,000
W.B.T.Y.
Advertisement Advertisement Years 2009 - 2011Years 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.
Product PRProduct PRYears 2009 - 2011Years 2009 - 2011
Product PR did not see Product PR did not see an increase until the year an increase until the year 20112011 Increased by $5,000Increased by $5,000
W.B.T.Y.
Profit Margins Profit Margins and Dealer Supportand Dealer Support
Profit MarginsProfit Margins Average of 35% for all Average of 35% for all
yearsyears
Dealer supportDealer support Kept low to create more Kept low to create more
incentive with profit incentive with profit marginsmargins
W.B.T.Y.
Budgeting (Advertising and PR)2009 --- $3,635,000 2010 --- $3,734,999 2011 --- $3,805,000
Branding2009 --- $700,000 2010 --- $750,000 2011 --- $750,000
Wholesale Sales Revenue2009 --- $18,953,038 2010 --- $19,663,968 2011 --- $22,537,325
W.B.T.Y.
Stage 2
Profits Earned2009 --- $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 --- stabilizationYears of Consolidation --- stabilizationEstablished ourselves in the marketEstablished ourselves in the marketNeed for expansionNeed for expansionRecord profitsRecord profitsIncreased profitability --- care for investorsIncreased profitability --- care for investors
W.B.T.Y.
Stage 2Stage 2
HIGHLIGHTSHIGHLIGHTS(2006 – 2011)(2006 – 2011)
Record Profit ----- $Record Profit ----- $5,394,466 Never recorded a loss in any single year of running Never recorded a loss in any single year of running Current Ratio ----- 7.147Current Ratio ----- 7.147Earnings Per Share ----- $3.883Earnings Per Share ----- $3.883Debt to Equity Ratio ----- 0.14Debt to Equity Ratio ----- 0.14Top Market Share ----- 28.0%Top Market Share ----- 28.0%Top Wholesale Sales ----- Top Wholesale Sales ----- $22,537,325
W.B.T.Y.
