Gallons Per Mile

• 1. Rent, Pedal, Ride,Water World-Wide

2. GPM Executive Summary A bike rental service that will donate a gallon of cleanwater for every mile ridden. Will fight the growing problem of watercontamination. A network of bicycle-dispensing hubs allowing forcheap and convenient transportation across largecampuses. Focus on universities 3. How It Works User Interface Features (also available online) Quick and easy registration Pricing Info Instructions (Check in and Check Out) Damaged bikes Nearby locations Damage resistant locks Extended backboardfor advertisements 4. Needs and Wants Fulfilled Transportation needs Exercise wants Recreational wants Clean water incentive 5. Why Water? 6. Location Analysis Stanford university is a platinum-level Bike FriendlyUniversity as declared by the L.A.B. At 8,183 acres, Stanford is the second largest universityin the world Relatively flat, large, and sunny all year round,Stanford is an ideal place to launch GPM 7. Management TeamStudent Managers: CEO- James Brasel CFO- Alice Liao CMO- Zachary Driscoll CWO- Jack Brence 8. Advisory Board Brogan Graham- Marketing Manager for Hubway Peter Chasse- Founder of The Water Project Jay Mirinov- Owner of Jays Cycles Daniel Liao- Owner of Viscount Industries Co. 9. Well establishedrelationship with Giant Specialized in casualbikes User friendly Lower cost 10. Financial Costs (1 University) Fixed costs: Terminals: 10x$1000 = $10000 +Giant Bikes: 150x$50 = $7500 Initial Cost = $17,500 Variable costs: Maintenance, Administration,Electricity for Terminals $5500 per year 11. Funding/Revenue Advertisements Focused on market for college students User Fees $20 yearly registration fee $0.50 per half an hour Government Funds Public Universities(Barclays $39M funding for London Program) 12. Projections (each campus) 1st year - $15000 loss Yet to break even from initial cost 2nd year - $5000 profit System begins to run smoothly with little operationalmanagement 5th year - $70000 profit Exponential profit growth due to low variable costs 13. SWOT AnalysisStrengths Weaknesses A proven business model Lack of awareness for our brand Cheap and convenient useand issue we are trying to solve Revenue stream relies on Giving model/Philanthropy advertising for other companiesOpportunities Threats Expanding into various Competitor bike rentingdifferent universitiescompanies Demand from Barriers of entry intouniversitiesuniversities Demand fromcompanies whose targetmarket is collegestudents 14. Industry Size Bicycle industry in 2011 was a$6 billion industry Includes retail sales of bicycles,rentals, related parts andaccessories Industry has remained stablesince 2003, with sales between$5.8 billion and $6.1 billioneach year. Bike sharing services (Hubwayin Boston, Citi Bike in NYC)have been a major success 15. Industry Trends In 2010, Denver, Minneapolis,Chicago and Washington DC allopened bike sharing programs. By 2012, Miami, Boulder,Madison, New York City,Portland, Boston, Indianapolis,Citi Bike in New YorkKansas City, Anaheim and SanDiego joined the bike sharingindustry. Other cities including LosAngeles and Santa Monica planto launch major bike sharingservices within the next year.From: bikesbelong.org B-Cycle in Denver 16. Target Market Segment Male and female collegestudents ages 18-22 People looking for exercise People that feel good aboutgiving back Students who do not want towalk to class or wait for shuttles 17. Target Market Segment contd Look to expand to 5 warm-weathereduniversities with large studentpopulations (Texas-Austin, UCLA,Arizona State, UCF, Texas A&M-CollegeStation) According to a survey by the Outdoors UCLA campusIndustry Association, the 16-24 agedemographic holds the largest percentageof cycling participation at 29% of totalcycling participation 18. Students Are Cheap Yes, we know students dont liketo spend money Furthermore, parents dont wanttheir kids asking them formoney Key in marketing strategy is toprovide students with veryaffordable way to get from placeto place while beingphilanthropic 19. How do we do this? 20. Cheap, affordable pricing options GPM B-Cycle (competitor) $20 registration fee Must buy a membership for 50 cents per half hour of either 24-hour period, 7-dayuse period of annual period. Ratesfor these are $10, $24, $60, No cap on swipes to rentrespectively. Student Discountbikefor annual rate is $48. After the membership charge,there are still charges forriding. Each additional 30minutes after the first halfhour is $2. 21. With such low rates, it would seemthat GPM could never be profitable enough to warrant outside investments, time and effort So how do we turn a profit? 22. Advertising With ads on the bike racks, renting stations andbicycles themselves, a major cash flow stream isopened. Ads will be targeted towards college students Ads will take into consideration geographicsegmentations, demographic segmentations andpsychographic segmentations of the specific universitywe are working out of. 23. Advertising contd Ads will also be shown on front panel where gallons donated are displayed 24. Barriers to entry Convincing universities that GPM will benefit them Universities allowing advertising. Often, universities will have a certain agenda and willonly allow certain kinds of ads on campus, if any. Wehope to work with Stanford and our 5 target schools onpossible advertising that works for the school and willcatch the eye of our consumers. 25. Promotion the giving back aspect of riding We want to workGPM bikes Make it fashionable to ride for exercise and ride forhelping those in need Compare campus area to size of better known areas(eg building a to building b is equivalent to 7 blocksin NYC) to show how long of a walk it is. 26. Intra-university competitions As a means of promoting ourselves and promotingclean water, every other month we will host a 10kwhich will start and end at all of our participatinguniversities. Goals to reach x amount of gallons will be set andwinner will receive prizes. Positive media will result from these competitions 27. Market strategy towardsuniversities Working with GPM means working for a great cause Positive connotation towards university if they work with us. This university has GPM? They are philanthropic. You will not want to be the university thatdoes not have GPM on campus. 28. Contact InformationJames [email protected] [email protected] [email protected] [email protected]