Park2Pedal Business Plan- Capstone

Park2Pedal

Business Plan Prepared on December 2015

By Liza Perez

Table of ContentsExecutive Summary

Market Opportunity Management Capital requirement Financial Projection

Organizational Plan: A. Summary of Business concept B. Management, Advisor & PersonnelC. Strategic PartnersD. Accounting & LegalE. Insurance F. Security

Operations Plan A. Product & ServicesB. LocationC. Projected employee costsD. Capacity &ProcessE. Key Milestone for Successes

Marketing Plan: A. Overview & Goals B. Marketing analysis C. Target Analysis D. StrategyE. ExecutionF. TimeframeG. Budget & Cost H. Measurement of Success

Financial PlanA. Benchmarks B. 3 year Revenue Projections C. 3 years income statement D. Break–even Analysis

Bibliography

Executive Summary

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Park2Pedal- a parking solution for bicycle will be establish with the objective to provide

monitored parking for bicycle throughout New York City via mobile or stationary garages and

partnerships. Park2Pedal is a NYC based company. This business plan will serve as a plan that will

guide the company through the administrative, marketing, and financial issues that are inherent in

reaching a growth plan.

Market Opportunity:

NYC is one of the most bike friendly cities in the US with more than 500,000 adult New Yorkers i use

a bike at least once a month. The city has more than 350 miles of bike lanes, many of them barricaded

from traffic by concrete and parking lanes, encouraging even casual cyclists to ride down Broadway

and through a car-free Times Square. Bicycling is New York City’s fastest-growing mode of

transportation and has seen the fastest growth in ridership. According to the Department of

Transportation's (DOT) Commuter Cyclin g Indicator , there was a 13% increase in daily commuter

bicycling between 2009 and 2010 alone (see chart below).

Our city has seen double-digit growth in bike ridership for four straight years -- effectively doubling

the number of regular cyclists on our streets, according to the DOT's annual counts.ii The reason for its

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fast growth is associated with the city’s effort to improve the roads for cyclists, the growing traffic

congestion and increase cost in public transportation. Bicycles are often the quickest method to travel

across town. New York City is still working on making the city a better place for bikers and according

to Mayor Bill de Blasio bicycling will comprise 6% of all trips in the city by 2020.iii

Management:

Liza Perez manages Park2Pedal. She has more than five prior years of experience in marketing and

team management. Previously she worked in a service industry selling and marketing products and

services. Liza has established a strong team of very dedicated people who are eager to make a

difference in the world. As manager her role is to handle the Marketing, business development and

maintaining relationships with key partners.

Capital requirement:

Park2Pedal is seeking funding in the amount of $171,179 for the purpose of purchasing

equipment, licenses, build the technology to operate the business (ex: app &website) and pre-

launch marketing efforts.

Breakdown of the use of funds

Provided below is a breakdown of the use of funds.

Activity CostRegistration & Parking licenses $10,000Customization & Equipment $25,000Marketing $19,513Technology (App/Website) $116,666Total $171,179

Financial Projection:

Park2Pedal is expected to break even in a year after our service is launched. Forecast for identified

growth resulting from a devoted and loyal customer-based and aggressive marketing initiatives

indicate that Park2Pedal will exceed $1million in sales by the end of year 3.

Part I: Organizational planA. Summary of Business concept:

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Park2Pedal surged as a need to solve the current lack of adequate parking space for bicycle in

NYC. As the city grows more bike-friendly the amount of bikes stolen is also rising. For the last few

years: there has been about 2,894 bikes stolen in 2011; 3,503 in 2012; 4,249 in 2013; and 4,849 in

2014. That's almost a 70% increase in thefts in just four years.iv

In effort to prevent bike theft legislations like the NYC's Bicycle Access to Buildings Law in 2009 was

passed. This law requires commercial buildings to allow tenants to bring their bicycles into offices

using the freight elevator if their employer approves the request to bring the bike up into the office.

Unfortunately, the legislation is seeing little success since most employers don’t have the space to

accommodate bicycles in their office. According to a TfGM survey the 5 th barrier to cycling is the

“lack of safe storage facilities” (see graph below) and per TransitAlternative.org if cyclists were

guaranteed safe bike parking, the number of people biking to work would quickly double.v

Another option for cyclist is to park the bike in a garage. The city also passed a law that requires

garages with 100 or more vehicles to provide bicycle parking at a rate of at least one space for every

ten-vehicle spaces. The problem is that most garages don’t want bike commuters because it means

losing car users. In order to discourage the use they charge very high prices ($75 a higher a month per

spot.). The only option left is the street and it’s adversities.

NYC street parking:

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Mission Statement:

Park2Pedal mission is to provide value added products and services that meets urban cyclists and their

evolving needs. We build lasting relationships and communities to advocate on the safety and security

issues that affect them along the road.

Vandalized bikes:

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Strategy:

Park2Pedal’s long-term goal is to be the forerunner in dominating the bicycle parking service

nationwide. Our goal is to provide an innovative solution to solve the bicycle-parking problem by

providing clients with a seamless experience across our locations. Park2Pedal is looking to create both

an online and physical presence across the industry. The Company drives to go beyond just being a

parking space by connecting with its users on different platforms or via different products offerings.

Location

Park2Pedal will operate from remote locations. Remote locations are strategically picked

based on the market and demand for the service. The company’s start off location will be all

five Boroughs in NYC. Each location in NYC will be launched by phases prior to expanding

to other areas of the country.

Administrative Plan C. Legal Structure:

Park2Pedal will be registered as a Limited Liability Company (LLC) under the law of the state of New

York.

D. Management, Advisor and Personnel

Park2Pedal has a strong management team as well as a board of director, committed to achievement

and excellence. The Company’s management philosophy is based on responsibility and mutual

respect. We have an environment that encourages creativity and hard work. Pedal2Park’s management

team provides strong leadership ability, sales and marketing expertise, and an extensive knowledge in

the Internet and cycling world.

Staffing structure

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Core management team

Liza Perez, Co-owner/ President

• MS In Integrated Marketing at NYU.

• BA in Marketing Management at Baruch College.

• 4 years of experience in Marketing, PR and team management.

• Outdoor enthusiast bicycle rider.

Responsibilities:

Handle the marketing and business development initiatives.

Build and maintaining relationships with strategic partners.

Oversee and manage all operations along with co-founder.

Felipe Garcia, Co-Owner/Operations Manager

• Bachelors in Business administration from Nassau College.

• Has over 4 years of experience in the Bicycle industry.

• Founder of Brooklyn studios, a manufacturer of customized bicycle.

• Daily cyclist commuter and advocate for a bike friendly world.

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Responsibility:

Work in supply management and product development.

Work in the customization of our parking spaces to provide a unique and seamless UX.

Hire, train and manage staff.

Guillermo Lopez, Technology Development Manager

BA in Computer Science. Application developer expert at HeBS Digital.

Worked for the MTA as a server operator in obtaining and writing user

guide for software to facilitate inventory management and tracking.

Riding bicycle is his preferred form of exercise.

Responsibility:

Build and Maintain Park2Pedal app, website and any technology software/ server used by

the company.

Work on creating a unique UX as well as setting up a server who can manage

Park2Pedal’s inventory and POS.

Ensure information and inventory is kept secure via the use of encrypted technology.

Augusto Gomez, Mechanical Engineer Intern

Currently studying Mechanical Engineering at Vaughn College.

Previously worked 7 years in Aviation structural mechanic in the NAVY.

Loves to participate in Triathlons and bike tours.

Responsibility:

Design bike racks and parking facilities to maximize space and functionality.

Maintain and repair equipment.

Promote Park2Pedal during races and bike tours.

Board of Advisor:

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Robin Chase

Robin Chase is a transportation entrepreneur. She is co-founder and

former CEO of Zipcar, the largest car sharing company in the world; Buzz

car, a peer-to-peer car sharing service in France (now merged with Drivy);

and GoLoco, an online ridesharing community. She is also co-founder and

Executive Chairman of Veniam, a vehicle communications company

building the networking fabric for the Internet of Moving Things.

Chase loves spending her time giving talks about innovation,

entrepreneurship, technology, transportation, cities, and climate change.

Money is not an incentive for her; she cares more on how she can help

make the world a better place (Just like Park2Pedal).

Personnel:

Park2Pedal places an extremely high value on the importance of its workforce. Management realizes

that the strength of the company’s personnel is key to its success. As such, plans include filling staff

positions with people who embraces the cycling world and lifestyle. All employees will be treated with

respect, compensated sufficiently and provided with a professional environment. The company will

implement various incentive aimed to retain employees and minimize turnover. Group events, bonus,

contest will be implemented to promote engagement and boost moral. Engaged employees are more

inclined at making customers happy. As a result the company will profit from repeat business as

customers establish positive relationships with Park2Pedal employees.

The Company plans to hire at 24 hourly employees at an average of wage rate that totals $10.50 per

year per employee.

Personnel Profile:

High school education or higher.

Pass a background check.

Knows how to ride a bicycle safely.

Physical endurance to tow or carry at least 100 pounds.

Resilient to weather change and can navigate through crowded streets efficiently and safely.

Detail Oriented:  Pay close attention to all the little details.

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Trustworthy:  Known for your personal integrity and honesty.

Team Player:  Listen, Communicate, and Work with tons of different people.

Enjoys cycling and are interested in its lifestyle.

Responsibility:

Operate parking facilities

Pick up and drop off bicycles in assigned areas.

Check in and check out customers via our system.

Lock bicycle securely and monitor.

Manage parking units to the most efficient way.

Projected Personnel Costs

Staff will be hired both as fulltime and Part time contract staff. All fulltime employees get

basic salary benefits. The split is 70% to 30%. Benefits will include social security taxes,

unemployment insurance, worker compensation, and disability insurance; leave benefits as

required by the law.vi

The minimum wage in NYC is $8.75 per hour and in the case of Park2pedal attendants will

make up the rest of the wages through tips. Merit will vary from 0%-5% per year and will be

based evaluated based on performance.

Compensation for part-time staff will only be given minimum wage without any compensation

and benefit. Part-time staff will also be able supplement wages through tips.

D. Strategic Partners:

Park2Pedal plans to build strong partnerships with companies and communities who will benefit from

their services. Partnerships are going to be a key component to grow their business footprint.

Targeted partners will be:

• The Department of transportation (DOT)- will benefits from the reduction in carbon

monoxide, lower cost to repair roads caused by cars and better healthier and happier New

Yorkers by lower insurance cost by providing a healthier alternative to commute to work.

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• Parks and Recreation - will benefit from the increase in traffic and longer visits from cyclist.

• Businesses who target cyclists - will benefit from the joined forces and business exposure.

• Local Business - will benefit from lower insurance cost by providing a healthier alternative to

commute to work. Increase in productivity by having happier employees. Improvement in the

local economy since bike friendly areas tend to attract more tourists.

• Bike-friendly advocate organizations - will benefit from a service uniquely tailored to their

member’s need.

E. Accounting and Legal

Accounting:

Day to day bookkeeping will be done in-house and will be kept on a computer via the use of the

software “QuickBooks Pro”. For added accounting and finance functions, Park2Pedal has retained the

services of Progresso Accountants & Advisors.

Legal:

For all legal aspects relating the business, Park2Pedal has retained the services of Chandra Law

Offices, PC.

F. Insurance:

The following insurance policies will be obtained for Park2Pedal:

Property

General Liability

Umbrella/Excess Liability

Workers compensation

For all is insurance needs, Park2Pedal has retained the services of Liberty Mutual Group.

G. Security:

Park2Pedal understand that providing security is one of its main goals and take the matter very

seriously. The company plans to implement several checkpoints to ensure the security is not breached.

Park2Pedal plans to procure a sophisticated point of sale system via the use of the app that will be the

foundation of accounting controls. All payment transaction will happen via the use of the application

or website under an encrypted broadband connection to the company’s credit card processor. This will

eliminate the need for employees to handle payments and focus on the main operations of the business.

Also any customer information retained for marketing purposes will be stored on the company’s

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server. Cameras will be installed in key areas. Access to the cameras will be available to authorized

users via an encrypted connection of the Internet. A password protected VPN client on the authorized

user’s workstation will provide the ability to monitor activities whenever necessary.

Additional measures will be taken to avoid internal and external theft:

a. Alarms will be set on each bicycle station.

b. Cameras will be installed in garage and in parking areas recording 24 hours.

c. All monetary transaction will be processed electronically via an encrypted POS.

d. Employee orientation will be hosted to reduce security concerns.

e. Inventory of bicycle will be managed by app in real time and other inventory count

will be performed in regular basis (at least once a month).

II. Operational PlanA. Product and Services:

Park2Pedal service is to provide surveillance to bicycle at an affordable cost. The service will be an

alternative to street parking. The company plans to have several product stages. Per the product road

map below, Park2Pedal will initially start its parking offering via customized bicycle cargo, Pop up

stores during peak seasons and areas, permanent parking in high traffic areas and lastly extend its

service offering by selling branded products or additional services like bicycle cleaning and tune ups.

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Tools needed:

In order for Park2Pedal to functions it will need:

o App/website

o Parking Facilities

o IPhones to scan with camera

o Locks & racks to secure bicycles in place.

o Security system (alarm & camera)

B. Location:

Park2Pedal will operate from remote locations. Remote locations are strategically picked based on the

market and demand for the service. The company’s start off location will be the Brooklyn district 1

location, prior to Manhattan’s District 1, 2 and 3 in NYC.

District one in Brooklyn, includes Williamsburg and Greenpoint. This location will be used as the pilot

location and was strategically picked because it sees around 2,271 cyclists. So it’s not too big or too

small. In addition Brooklyn is known to be very welcoming to new ideas than other parts of NYC.

Piloting the program here will allow Park2Pedal to have room for improvement and make adjustments

before move towards a more congested area.

Once the service delivery is fine-tuned and Park2Pedal will move to Manhattan’s Battery Park city and

Lower East Side area. These areas are right off 3 major bridges connecting Brooklyn to Manhattan

(Brooklyn, Manhattan and Williamsburg bridge). As of 2014, Approx. 8,849 cyclists commute daily.vii

According to Social explorer’s map Brooklyn’s District 1viii sees an average of 2, 271 cyclists using a

bicycle as a mode of transportation.

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District 1&2 in Manhattan has 4,259 cyclists alone

District 3 in Manhattan sees the

largest group of cyclist in NYC with

4,590 cyclists.

Our location expansion plan will be based on:

Number of ridership

Growth of bike friendly areas.

Accessibility to bike lanes or spaces to bike.

Number of local referrals from customers and businesses.

Operating hours:

Cycling in NYC happens mostly between 7am and 7pm and decreases drastically after hours due to the

decrease in visibility. Park2Pedal hours will initially offer its services between these hours and adjust

based on the demand of the location.

C. Capacity & Process:

Bicycle Specs:

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Average bicycle weight around15 lbs. to 30lbs. and is 2.30 feet wide, 4.20 feet high and almost 6 foot

long.

Shuttle Parking

Specs of Cargo TricycleHeight: 6’Length 8’Wide: 5’Sealed lockable box constructed from reinforced molded fiberglass with padded interiorCan tow up to 250lbs/ Fits: 4 bicycles

These Cargo tricycles will have several purposes for Park2Pedal. These eye-catching cycles will not

only serve as mobile billboards but also allow the company to be flexible with its location and reach.

Save Cost by not having to pay high rent for several physical locations. Reduce the Carbon monoxide

footprint and they are easy to maneuver and park.

Cargo cycles will need to have working brakes, front and rear lights, front mirrors for safety

and to comply with regulations. They will also need to know the following parking

regulationsix:

An attendant will operate Park2Pedal cargo bikes. Each attendant will be assigned a route to

trail and set schedule. Each route will have assign stops (no more than 5 stops per route) where

the attendants will stop for max 10-15 minutes to load/unload or simply wait for customers.

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Once the time is up they will move around to the next stop. After completing a loop they will

go to the main storage depot near their location and drop off the bicycle or pick up bicycles that

need to be returned. At least two cycles will cover a route to ensure there is always someone

covering the area. Here is a screenshot of the three routes and self-storage facilities that will be

used during the pilot:

Attendants will send a signal of their location via their mobile. This signal will be sent to the

company’s server with the exact location/ route of the shuttle so it can be tracked on a real time

map. The information will be updated into our app/ website so customers can locate it easily.

Bicycles will be loaded into the shuttle and locked in place from the back of the shuttle through

double lockable swinging doors. The cargo area will be monitored via a camera and alarm

system. In order to unload the bicycles the alarm needs to be deactivated and bicycle needs to

be unlocked. To deactivate the alarm the attendant will need to use an electronic key, which can

be deactivated if needed.

As part of the pilot Park2Pedal will use a storage units provided by a third parties like U-Haul.

As the company grows it will look to lease or own permanent locations. At that point the Cargo

cycles will be used as an optional bicycle shuttles for customers in designated areas.

U-Haul provides self-storage solutions for business with a 24-hour access. Locations are secure

and easy to access. They also have convenient locations across NYC. Park2Pedal will use

storage units of 15’x20’x8’ (300 square feet)x and use double deck bike racks to maximize

storage. The storage capacity of each unit will be 66 bicycles and will cost $650 a month. This

equals to $3 per sqft versus leasing a warehouse in Williamsburg, Brooklyn- Which costs an

average of $15-$18 per sqft. Sample floor plan of self storage below:

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Shuttle attendant will access the self-storage facilities as needed to drop off and pick up

bicycles.

Pop up container stores

Specs20’ Length 8’ Height 8’ WideLarge Lockable reusable steel boxesFit 32 bicycles

The pop up container stores will allow Park2Pedal to store larger amount of bicycles in high peaks

seasons and in locations where mobility is limited or restricted. This Pop up fun stores will be

customized by the company and will be used as a temporary solution during special events as outdoor

concerts, street fairs, triathlons, summer events. The interior will be divided in parking areas and

service areas where branded products could be sold and additional services offered, such as tune-ups.

Containers will need to be lifted at night or at the end of the event unless the facility is locked down

and under surveillance at night like private terraces in malls and other commercial areas. The Interior

will have padded surfaces to prevent bicycles from scratching.

Users will drop off their bicycle directly to the store and will be to locate the facility via the

app/website.

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

IIIIIII-Bike parking

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Sample Floor plans for container stores.

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Permanent Parking:

Once Park2Pedal has built a larger customer base then this option

will be made available. The benefits of having a permanent location

will make it easier to operate in high traffic areas. Clients will have

the options to drop off and pick up their bicycle directly from the

location or drop it off with one of our Cargo cycle, which will bring

it to the permanent location.

The company will look for an average of 2,500 sqft space to park around 500 bicycles. The

floor plan will depend on the availability of the place and the dimensions. The location will

need to be easy to access for bicycles. The interior will be divided in areas for parking and

service where branded products could be sold and additional services offered, such as tune-

ups.

Double deck bike racks will be used in all storage areas. Those racks are specialized to lock bicycle

into place and maximize storage. To keep bicycle safe and secure locks will have an alarm system,

which will deactivate with an electronic key. Padded sleeves will separate the bicycles to prevent

damage. In addition all storage units will be monitor via camera surveillance. See sample of storage

rack below:

16 Bikes in less than 48 Square Feet

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Bicycle will be loaded and locked in place. In addition the store will be monitored via a camera and

the attendants at all times. In order to unload the bicycles the alarm needs to be deactivated and

unlocked from rack. To deactivate the alarm the attendant will need to use an electronic key, which

can be deactivated if needed.

Service launch:

Service will be launched in 5 phases:

Phase 1: Launch Shuttles Parking in Brooklyn and Manhattan

Weekdays in work place areas.

Weekends in areas where people recreate

Phase 2: Launch Shuttles Parking in Queens and Bronx

Weekdays in work place areas

Weekends in areas where people recreate

Phase 3: Launch seasonal container parking for areas of high demand via partnerships or special

events.

Phase 4: Launch permanent locations in high concentration areas via partnerships or lease.

Phase 5: Launch branded product line/ bicycle services & expand to other cities.

Customer experience

Clients will need to create an account with Park2Pedal in order to use the service. The steps listed

below will only need to be taken once. Nonetheless, customers will be able to update their information

anytime afterwards.

o While creating an account they will be prompt to:

Save their basic contact information (Name, email, phone, address).

Save a Credit/debit card on file

Pick a preferred method of payment (membership, subscription or one time

users)- Please note payments will not be processed until the service has been

completed.

Build a quick profile for each bicycle they have (include make/ model/ color/

style).

Each bicycle will get a virtual tag to use via the app as part of the identifying process when checking

in and out of a parking facility.

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o In order to use the service clients will need to access the website or app & select:

The bicycle(s) they need to park

A timeframe of when they need to dropped off and picked up their bicycle

The frequency of service (one time or reoccurring).

Location (closest to their current location or they can input an address).

o Once they made their selection they will be able to see the available parking locations

closest to their desired location with their operating schedule.

o After selecting their preferred location (either a physical location or a stop of the

shuttle) they will be able to finalize their booking. Now, if they are parking for more

than 4 hours and the parking facility offers additional services, like Tune ups, then

they will get an additional screen offering

o They will receive a message confirming from Park2Pedal with their booking and a

copy of their virtual tag. Then later, reminders of their time to drop off and pick up

their bicycle will be sent. For shuttles Park2Pedal will send an ETA within a 30-

minute window prior to drop off or pick up.

o Customer will just need to show up to the parking location or shuttle stop- In addition

For shuttles, customers will be able to track their schedule and distance on a real time

map via the website or app.

o Once the shuttle shows up or they drop off their bicycle at a location, clients will just

need to show their virtual tag. The tag will be scanned via their phone or printed copy

to the parking attendant. The attendant just scans the tag and the client is all set to go.

o Customers will be able to track the progress of their parking space on their mobile. It

will show up as a progress bar, which will be very useful especially if their bicycle is

getting additional services done during their stopover.

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o Customer will get an alert of when they need to pick up their bicycle. For shuttles

clients will be able to obtain ETA and track them on a real time map or via the bicycle

tracker.

o The client picks up their bicycle with the bicycle tag. Tag is scanned to check out

bicycle and server is updated with available space on Park2Pedals end.

o Once service is completed client is charged for service and a message is sent to the

client with the confirmation.

o In the message, customers will be thanked for using the company and asked to rate the

service. Clients will also be given the option to give a tip to their parking/shuttle

attendant to show their gratitude.

On Park2Pedal’s end:

o Once client makes a booking an update get sent to the parking facility or shuttle so

they will have access to the daily booking schedules and can plan accordingly.

o Server will also be updated with parking availability. Meaning that as soon as

customer books a space the company will decrement the availability of the space and

the website/app will be updated with the information so it only reflects available

spaces left.

o When client is dropping off bicycle attendant will scan tag with the camera of their

iPhone. Information of bicycle and basic contact information of client will generate.

o Attendant will quickly confirm tag matches bicycle information and then load and

lock the bicycle on the bike rack.

o Based on the timeframe of the parking the operations will vary for shuttles cycles. For

example if the bicycle is going to be park for:

Less than 2 hours: Attendant will keep bicycle on the shuttle cargo.

More than 4 hours: Attendant will take the bicycle to main storage

location for the rest of the length and load bicycle back into the

shuttles 30 min prior to pick up time.

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o As the bicycle moves around from location they will get scanned to update the

progress bar and keep the client up to date. Progress will be customized base on what

service the client is getting.

o When the client picks up their bicycle- Attendant will scan the virtual tag from client

to check out bicycle. Quickly confirm bicycle information and return the bicycle.

o Once the service has been completed our server will process payment and send a

confirmation.

Revenue streams:

Park2Pedal will have 3 different revenue streams.

o Users paying for parking.

o Branded product sale/bicycle services.

o Contractual revenue from partnerships.

Pricing

Park2Pedal has different types of Pricing.

i) Unlimited parking- No annual fee

o $20-30 days subscription for unlimited parking during the day.

o $180- One year unlimited parking during the day (25% off)

*(Operating hours will vary based on locations. Most locations will start from 7am to 7pm)

ii) Subscription with Annual fee

o $40 annual fee and pay $2 per usage.

iii) One time usage

o One time users Pay $10 during the day (No subscription)

iv) Penalty fees:

o Overnight $5 per night

o Late Pick up fee $2

o Do not show booking fee of $1 (Park2Pedal will have a 15min grace period before

Charging fee)

v) Additional services:

o Bicycle tune ups: $50

o Bicycle cleaning: $20

o Flat tire: $10 per tire

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o Branded products Avg price $10-$20 (However will vary)

D. Key Milestones for Success:

Operations planning keys to success:

o Functional Technology to support user experience and operations.

o Efficiency in inventory control-Finding the right place and time to be and managing

availability of parking spots.

o Keeping customers informed about product and services.

Part III: Marketing PlanA. Overview and Goals

Overview

The marketing plan is developed in order to support Park2Pedal’s goals and strategies. It is based on

the strategic goals as well as from knowledge gained during the situation analysis of the industry,

competitors and target market. The marketing tactics will focus on efficient PR campaigns, including

strong Internet search engine optimization, social media presence and events sponsorship. The

marketing plan will follow the three strep awareness, acquisition, and retention and loyalty model.

Awareness AcquisitionRetention &

Loyalty

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Marketing Goals

To create a strong brand awareness

To build market share.

To gain at least 10,000 customers by year 3.

To retain and create a loyal customer base

To make Park2Pedal the number one option for cyclist to leave their bicycle.

Create a community of bicycle riders.

B. Market Analysis

Industry

Park2Pedal falls within two industries the Parking/Garage industry and the Bicycle industry. Per

information below both Industries are very promising.

Bicycle Industry

Riding a Bicycle is a convenient form of transportation and provides three distinct advantages that

include price, performance and environment protection. Compared to other products that faded out of

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consumer’s life, bicycles continue to exist in the market. The global bicycle industry is expected to

reach an estimated $65 billion by 2019.xi The growth is driven primarily by its eco-friendly

characteristics, growth in cycling as a preferred recreational and fitness activity, growing traffic

congestion, and rising prices of public transportation. NYC is a great example of this phenomenon. As

shown in the following graphs NYC has seen a large in increase in ridership across the board.

Governments across the world are also aiding the bicycle industry through various bicycle promotion

projects and policies. In exchange they benefit from reduction in pollution, reduced cost in roads

repairs and economical growth. Studies show that bikers are more likely than drivers to stop and spend

at local retailers rather than driving to suburban malls. By driving 20% less than other places, cities

like Portlanders contribute to $800 million to the local economy per studies.xii

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The bicycle industry is currently valued to $6.1 billion in the US and the number of frequent adult

cyclists has been increasing by 12% since the year 2000.xiii  Bicycles purchased in the United States are

mostly produced in Asia. Per the chart below the world bicycle production has spiked in comparison to

the number of automobile produced.

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Parking/Garage Industry:

In the US the parking lot and garage industry is currently valued to $10 billion and has been growing

at a rate of 1.2% annuallyxiv. However, The global parking market is expected have an annual growth

rate of 11.4% from 2014 to 2019. This means the market will be worth $8630.76 million by 2019xv.

This is due to the result of cities becoming more urbanized and space to find parking more restricted.

In term of bicycle alone studies show that bicycle parking brings in more revenue than car parking—

The Blue zonesxvi project in Fort Worth, Texas, pointed out that an 160 bike spaces cost $12,000xvii—

about the same as a single car space, which means you can accommodate more people in the same

space of a car and make it more lucrative. However, most parking lots go after cars because it’s the

largest share of the market and charge cyclist high prices to discourage the use.

SWOT Analysis

Strengths:

o First mover advantage

o Unique service tailored to Cyclist’s need

o Operationally strong

o Strong partnerships/ Build community around Cyclists

o Various income streams

o Strong brand

o Proprietary technology to manage resources and connect with users

Weaknesses

o Cost associated with owning customized equipment’s.

o Have seasonality/slow seasons

o Learning curve for the company and clients since it’s a new service offering.

Opportunities

o Usage of technology

o Partnership opportunities with government or local businesses

o Product expansion to events sponsorship or Branded products

o Bike friendly legislations

o Growth in Healthy trends

o Rising cost of public transportation and fuel

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Threats

o Insurance cost keeps increasing

o Changes in trends

o New legislations

o Stronger competitors

o Improving economy

o New substitutes to biking.

Competitors:

Currently there is no other company that matches the services Park2Pedal offers. Currently, options for

a cyclist to park their bicycle are to either lock it to a street pole or bike rack if available. In some

cases they can use parking garages, but they are pricey and are mainly focus on cars users. An indirect

substitute to our offering is bike sharing programs/Citi bikes, however, this service is usually limited in

locations, time and availability. Bicycles are usually an extension of one self and these bikes lack

esthetic due to being branded and bulky. Park2Pedal users are sophisticated bike riders, who care

about their bicycle and see it as long-term investment for their health and the preservation of the

planet.

Competitive Advantage:

Park2Pedal benefits from the first-mover initiative as the company introduces a unique service tailored

to cyclists. Additional competitive advantages will be our use of technology to manage our resources

and connect with our customers. The company will provide a seamless service across its different

locations. Park2Pedal will also partner with key governmental agencies and local businesses to build

stronger communities for cyclist in order to upkeep the environment, health and economy of its

communities.

C. Target Analysis

35.6 million Americans age seven and older were estimated to have ridden a bicycle six times or more

in 2014, according to the National Sporting Goods Association NSGA.xviii In New Yorker City over

200,000 are biking our streets every day and more than 500,000 adult New Yorkers use their bicycles

at least once per month for exercise or transportation.xix The Bicycle Market Research Institute

reported in 2006 reported that 73% of adult cyclists rode for recreation, 53% for fitness, 10% for

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commuting, 8% racing and 6% sport. The figures add up to more than 100% because some ride in

multiple ways.

Primary Target: Commuters

This particular group comprises at least 10% of the cyclist community and it’s the fastest growing

segment of cyclists with an approximate 13% growth rate per year. The average bicycle commuter has

been commuting by bike for 8.3 years. 30% of bike commuters use a mountain bike, 28% a road bike,

18% a hybrid, and 17% a touring bike. 35% own a second bicycle.

Meet Mark!

Demography:

Age: 30 - 50

Status: Busy, healthy lifestyle, established careers.

Demo: $70K+, mostly male, working professionals.

Habit: Mass transit Avoider.

Characteristics:

Commute by subway 3 days a week and by bicycle 2 days a week. Days cycling increases

as he gets more confortable with his commute.

He rides a bicycle for about 40 minutes.

Spent an average of $1000 per bike plus $200 in accessories.

He owns two bicycles. One is a bad-weather bike.

He doesn’t have time or desire to go to a gym but wants to stay fit and healthy.

He enjoys life, and wants to take control of his happiness.

He is very tech savvy but enjoys unplugging from his devices.

Motto: “The journey is part of the destination”

Quote from a commuter like Mark:

“Nothing puts me in a bad mood like sitting in stop-and-go traffic. I’d much rather start the day

whooshing down hills as the sun rises and pedaling my way to the train station. Plus, I don’t have to

invest in a gym membership and my money can be saved for more important things like happy hour.”xx

Touch points: Lifestyle magazines, newspapers and blogs. Social media (PInterest, Twitter,

Facebook, Linked in, Google), Bicycle interest apps like bike lanes maps, subway ads.

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Secondary Target: Outdoors enthusiast

This particular group comprises 73% of the cyclist community. It’s the largest segment of cyclists. The

average rider tends to be men except for the outdoor enthusiast who sees the most female ridership

than the other groups. Bicycling is the most popular outdoor activity among youth in America, and it

is also the outdoor activity they do with the second-highest frequency.xxi This group tends to own 2-3

bicycles.

Meet Carrie!

Demography:

Age: 20-40

Status: Busy, Outgoing and trendy.

Demo: $40K+, college students to working professional. 42% female Habit: Experience seekers,

FOMO generation (fear of missing out)

Characteristics:

Rides bicycle mostly over the weekend or time off.

Uses cycling as part of the destination.

Loves to ride to stay in shape and explore new areas.

Make frequent stops to enjoy the views of the city, eat, and shop or sunbath.

Tends to cycle with others and enjoys social gatherings.

Bicycle is an extension of one and invested in a good bike. Avg price of bicycle is $1000.

Has tendency to forge deep and abiding connections with brands.

Likes to experience the outdoors as a way to connect with family and friends, enjoy nature,

and escape everyday obligations.

Motto: “Life is a beautiful ride”

Quote from an outdoor enthusiast like Carrie: "I don’t have a bucket list but my bike it list is a mile

long." xxii

Touch Points: Events sponsorship, social media (Instagram, Facebook, PInterest, Snap chat), Event &

destination apps & website ex: Meetup.com, lifestyle magazines and blogs, Banner ads, out of home

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advertising.

D. Marketing Strategy

Overview:

The overall plan for Park2Pedal’s service is based on the following fundamentals of:

A segmentation strategy to reach target market and people who want to reach them too.

Distribution channels planned to reach target: social media, blogs, print, and events

sponsorship.

Share of the market expected to capture over a fixed period of time.

Method of distribution:

Park2Pedal sells directly to the customer, is primarily a service business, with the exception of our

branded products expansion line that will come from wholesalers merchants.

Brand Identity:

Park2Pedal is a convenient solution for parking your bicycle. The company fits any budgets needs.

Park2Pedal is not just a brand it also builds an identity for cyclist by connecting with them on issues

they care. The brand joins the movement of sustainable transportation and motivates more cyclists to

bike on a daily basis. Park2bike connects with cyclists with a comforting and motivational tone.

Brand Positioning:

Compare to other options on the road Park2Pedal will position its self as the safest option as well as

being budget friendly.

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Marketing Channels/Media

We will use both traditional and digital marketing channels to reach our potential customers.

E. Execution:

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Brand awareness campaign

1. Create website and social media presence on Facebook, twitter, Instagram, P-interest and

other social media platforms in trend.

2.

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2. Search engine marketing will be implemented to make it efficient for customers to find us as

they search for similar products. Park2Pedal will use Ad words and organic search engine

techniques to optimize all our media channels.

Impressions: 20,000

Cost: $36,000

3. Banner ads on apps, social media, online print and websites targeted to people who ride

bicycle in NYC via the usage of AdSense.

CTR is 2%/CPC: $1.02xxiii/Reach: 50,000

4. In App advertisement with NYC Bike maps. This great way to reach my targeted audience. Users of this application are bicycle riders in NYC.

NYC bike map app (Free app) Has 50,000 downloadsxxiv.

Top app for bikers in NYC. This map downloads to your phone, so it’s available even when you’re not on the Internet. Shows bike lanes throughout the city, as well as NYC bike rules and a list of bike shops throughout town.

Cost of advertising $5 per clicks of about 5%CTR. Total cost $12,000 in app advertisement

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Events sponsorship: Park2Pedal will attendant several events during the year to network and connect with potential customers. Here is a list of events Park2Pedal plans to attend.

Total Cost $5449 per year for a total reach of 350,000 people.

Cost: $650 per street fair.xxv Reach: 300,000 people Attending all 3 days Total Cost $650 x 3= $1950

NYC Bike expo cost: $1650xxvi Frequency once per yearReach: 50,000 people

Sponsor Meet up groups in NYCxxvii: Bike’n eat

Members 1,904Spend $1000 per yearhttp://www.meetup.com/nyc-bike-food/

Urban cyclists Members 1,334 Spend $1000 per year http://www.meetup.com/UrbanCyclists/

5. Print: Park2Pedal’s target market likes to unplug from their devices and consume non-digital

media. Using print is still a great way to reach your audience. The company will purchase on

the bicycle times magazine and provide a special coupon code to track conversion ratexxviii.

Reach: 11,800 in Tri-state area. 25-55 Years old68% Male90K plus IncomeRiding habit 3- 6 times a weekOwns 2-3 bicyclesTop selling magazine at Barnes and Nobles, Book a Million, Meijers & KrogersCost: Full-page 3x $3,150

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Acquisition campaign

1. Publish info graphics & videos on how to use our service will be posted on our website and

different media channels to educate potential customers on how our service works.

2. Coupons sent to local bike shops. Coupons are a great way to attract and get existing

customers coming to your business. As part of Park2Pedal we want to offer potential

customers the ability to try our services for free as a one-time courtesy. In order to redeem

their coupon users will need to register on our app/ website in order to active an account.

3. Freebies to well connected influencers like Bill Cummingham:

83 years old street photographer for the New York Times.

Bill bikes the streets of NYC everyday- He is a true inspiration

to all the cyclist community in NYC.

Unfortunately up to this day he has had 33 bicycles stolen.

As a token of our appreciation for his hard work and dedication

to cycling the streets of NYC, Park2Pedal will offer him

unlimited parking for free at any of our facilities.

Bill Cummingham is an iconic figure in the fashion and

publishing world. Offering our services will connect us with bike riders in NYC, who looks

up to him as a symbol that cycling helps you live longer.

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Retention and brand loyalty Campaign

1. Email campaigns: Cost per month is $34/$420 per year/ and you can send unlimited emails to

up to 2,600 subscribers via Mail champ. Emails will be sent on special occasions like

birthdays, anniversaries, services updates, promotions and special events notifications.

2. Build customer support section on website and app with option for live chat, blogs and FAQ.

In addition they will have the ability to reach Park2pedal parking attendants via phone for

additional questions.

3. Social media Contest: for example Park2pedal will tease consumers to share their favorite

pictures on a bicycle via the Hashtag #iPark2Pedal and the picture with the most likes will win

$100 in bicycle accessories.

4. Loyalty program: Park2Pedal will work on loyalty program, where consumers earn points

each times they use our services to redeem on tune ups or bicycle cleaning services.

F. Timeframe:

Park2Pedal will scatter their activities through out the year.

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G. Budget & Cost:

Here is the break down on how funds will be spent in during the Marketing plan. Total budget

for all 3 years will be $58,539.

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H. Measures of success:

It’s going to be very important for Park2Pedal to measure it successes with each marketing tactics by

tracking:

Traffic

# Of traffic to site & mobile app Traffic source CTR & Cost per CTR

Conversion Cost per lead Conversation rate Repeat purchase rate

Revenue Avg transaction per customer ROI Cost of AC

Engagement Testimonials, likes shares, comments. Email list size Time spent on site

IV. Financial PlanProvided below is a summary of the key budget areas used as assumptions for the financial

projections.

A. Benchmarks

Several variables where analyzed and combined to estimate the number of projected sales.

a. Number of people who ride a bicycle in NYC who would potentially purchase

Park2Pedal’s service. Out of 500,000 riders in NYC, 10% are commuters (50,000)

and 73% are outdoor enthusiasts (365,000).

b. Industry trends and growth rate- Combined industries growth rate in the US=6%.

c. Marketing efforts average conversion rate (2-3%).

Park2Pedal do faces the challenge of not having ample data on competitors to benchmark due to

the uniqueness of its service offering.

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B. Three years sales projections

Phases 1 &2

Phase 3

Phases 4 & 5

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Here is the quarterly breakdown of the three years revenue projection:

C. Operational Cost:

Cost of Service provided Per spot:

The COGS is expected to increase over the 3 years as we implement each phases.

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Occupancy & Average Order value

• Commuters will use service in average 3 days per week.

• 10% are monthly subscribers.

• Avg Sales price per Unit is $1.48

• AOV per quarter=$1.48x3x4.5x3=$59.94

• 5% are yearly subscribers

• Avg Sales Price per Unit is $1.11

• AOV per quarter=$1.11x3x4.5x3=$44.95

• Outdoors Enthusiast will use service for an average of 4 times per month.

• 60% are annual fee +pay per park subscriber.

• Avg Sales price per unit $2.88

• AOV per quarter =$2.88x4x3=$34.56

• 10% are one-time users.

• Avg Price per Unit is $5

• AOV per quarter=$5x4x3=$60

D. Three years income statement

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E. Break-even analysis.

Fixed cost

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Fixed CostMarketing 19,513Website app 116,666Assets Depreciation 32,988Total $169,167

Variable cost

Variable costSalaries 553,230Bike racks 9,100Equipment 204,800Salaries 553,230Total $1,320,360

The total number of parking spots available once all the phases are completed is 2184 units and each

spot is used by an average of 1.5 clients per day. Total units=3270 units per day/ 1,195,740 units per

year.

Fixed Cost $169,167Variable Cost per unit $1.11Sales Price Per unit $2.61

Break-Even (Units) 112,778Break-Even ($) $294,351

Financial Projections:

Park2Pedal is expected to break even in a year after the service is launched. Forecast for identified

growth resulting from a devoted and loyal customer-based and aggressive marketing initiatives

indicate that Park2Pedal will exceed $1 million in sales by the end of year 3.

Bibliography:

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i http://www.nyc.gov/html/dot/html/bicyclists/bikestats.shtml

ii https://transalt.org/issues/bike/bikefaq

iii http://www.bicycling.com/culture/advocacy/2014-top-50-bike-friendly-cities

iv http://gothamist.com/2015/04/16/bike_thieves_abound.php

vhttp://www.transalt.org/sites/default/files/news/magazine/044Fall/04baneofbicyclist.html

vi https://www.sba.gov/content/required-employee-benefits

vii http://www.socialexplorer.com/6f4cdab7a0/explore

viii http://www.socialexplorer.com/6f4cdab7a0/explore

ix http://parkitnyc.com/2011/05/pedicabs-follow-traffic-rules/

x http://www.uhaul.com/Locations/Self-Storage-near-Jersey-City-NJ-07302/003638/

xi http://www.prnewswire.com/news-releases/global-bicycle-industry-2014-2019-trend-forecast-and-opportunity-analysis-269202531.html

xii http://www.fastcoexist.com/3021074/making-the-economic-case-for-cycling-friendly-cities-with-bikeonomics

xiii http://www.statista.com/topics/1448/bicycle-industry-in-the-us/

xiv http://www.ibisworld.com/industry/default.aspx?indid=1739

xv http://www.parking-net.com/parking-industry-blog/market-growth-report-2014-2019

xvi https://www.bluezones.com/about-blue-zones/

xvii http://www.fastcoexist.com/3021074/making-the-economic-case-for-cycling-friendly-cities-with-bikeonomics

xviii http://nbda.com/articles/industry-overview-2014-pg34.htm

xix https://transalt.org/issues/bike/bikefaq

xx http://www.bikecommuters.com/2013/11/29/commuter-profile-emily-shellabarger/

xxi http://www.peopleforbikes.org/statistics/category/participation-statistics

xxii http://www.sacredrides.com/blog/mountain-biking-quotes

xxiii http://www.hochmanconsultants.com/cost-of-ppc-advertising/

xxivhttps://play.google.com/store/apps/details?id=com.webcomrades.bike.newyork&hl=en

xxv http://manhattan.about.com/od/careersjobs/a/streetfairsvendorlicense.htm

xxvi http://www.bike.nyc/events/bike-expo-new-york/become-an-exhibitor/

xxvii http://help.meetup.com/customer/portal/articles/615408-how-to-sponsor-meetups

xxviii http://www.rotatingmassmedia.com/bicycletimes/