Prepared by Ryan Ziemba & team for Columbia Business School

1. Ryan Ziemba | Work Sample | Sept. 19, 2013
This work sample contains excerpts from a comprehensive analysis I prepared
along with my team of student colleagues at Columbia Business School. The full
analysis was used by the investors and management team of a custom bicycle
design and manufacturing startup.
While this was in part a business school assignment, it was also a valuable
consulting-style deliverable with real business implications for the recipients.
In the interest of anonymity, I have replaced the name of the firm with “Bike
Startup X.”
Ryan Ziemba
Columbia Business School
Prepared Nov. 28, 2012

2. The Market: Overview
U.S. Bike Sales (in millions)
21.0
18.0
15.0
20" and above
12.0
All wheel sizes
9.0
6.0
3.0
0.0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
 Units sold between 2000 and 2008 averaged 18.7 million per year
 Sales have been volatile since 2009, when they dropped to 14.9 million, rising to 19.8 million in 2010,
and dropping again to 15.7 million last year
 On average, kids’ bikes have accounted for 30% of the total units sold per year for the past 10 years
 U.S. bicycle sale revenues have had an 1.5% average growth over the past 8 years
 Sales topped $6 billion in 2011, incl. retail sales, parts & accessories through all distribution channels.
Source: National Bicycle Dealers Association, Industry Overview 2011, online.
2

3. The Market: Sales Distribution Channels
 Specialty retailers
 Mass merchants
70%
 Outdoor specialty stores
 Full-line sporting goods stores
 Online and other retailers
70%
55%
60%
Market Share
50%
Share of Total Dollars Spent
27%
40%
30%
20%
18%
8%
10%
5%
0%
5%
7%
Mass Merchants
2%
Specialty Retailers
3%
Sporting Goods Chains
Outdoor Specialty
Retailers
Online and other
There is opportunity to capture market share and customer dollars
Source: National Bicycle Dealers Association, Industry Overview 2011, online.
3

4. The Market: Specialty Retailers
Specialty retailers are of particular interest.
Distribution Channel
Market Share
Mass merchants
Specialty retailers
Online & other
Full-line sporting goods chains
Outdoor specialty stores
70%
18%
7%
3%
2%
% of Total
Dollars Spent
27%
55%
8%
5%
5%
Avgerage
Price/Bike
$84
$680
$380
$249
$590

Only distribution channel that maintained or increased average retail bike selling price in recent
years;

Overall share and average selling price of new bike sales were up in 2011 compared to 2010;

New bicycle sales represent ≈ 41% of revenue – the rest is
parts, accessories, service/repair, rentals and fitness equipment sales;

Approx. 4,100 retailers nationwide, but numbers are declining due to consolidation;

Core business strategy is differentiation: quality merchandise, added value services (e.g. bike
fitting, assembly, repair, and community involvement)
Source: National Bicycle Dealers Association, Industry Overview 2011, online.
4

5. The Market: Relevant Bike Use Trends
Group bike programs on the rise (e.g. bike share, corporate fleets, hotel amenities), as more metro
areas become more bike friendly *
 Well-known bike share programs in place in:
City
Denver
Minneapolis
Chicago
Washington, DC
Miami
Boulder
Madison
# Bikes # Stations
500
50
700
65
100
6
1,100
110
1,000
100
200
25
350
35
Highest Cycling to Work Share
By State
By City
1. Oregon
1.Portland, OR
2. Montana
2. Minneapolis
3. Idaho
3. Seattle
4. Colorado
4. San Francisco
5. Wyoming
5. Sacramento
6. California
6. Oakland
7. Hawaii
7. Washington, DC
8. Alaska
8. Tucson
9. Washington
9. Denver
10. Arizona
10. New Orleans
 Some large corporations such as Google, Apple, Facebook, Genentech, and Williams-Sonoma
have implemented corporate fleet programs
There is room for growth in the corporate sales space
* 19 of the 51 largest U.S. cities and 26 states have adopted policies requiring streets be built to accommodate bikes
5

6. Corporate Sales Strategy: Segmentation & Analysis
Market segmentation is the cornerstone of an effective and efficient sales strategy
Consider barriers to entry

Understand potential barriers to entry for each potential market to determine if successfully targeting a
given segment is feasible and economically advantageous in both the short and long run.
Understand customer behavior & preferences

It is also crucial to investigate customer needs, buying processes and behaviors, value perceptions, and
channel preferences for each segment.

Find where, when and how do prospective targets make related purchases.
Determine how individual target clients operate internally

Identify who influences buying decisions, who actually makes them, and who places the orders.
Analyze distribution channels

Evaluate each step in the the distribution channel pipeline.
Stay on top of market developments

Monitor the key trends in your market, such as market changes and the activities of competitors.
6

7. Corporate Sales Strategy: Potential Leads
“In the HR world—outside of the industry—bikes are fast becoming the “cool” recruitment tool.
High-tech firms in the Bay Area, including such behemoths as Apple, Google and Facebook, have invested in bikes
for workers to get to various campuses, and it’s a trend that Kurt Wallace Martin says is on the rise nationwide as
employers in dense urban cities feel the squeeze of congestion and limited parking.”
Large Corporations
Primary Commercial Benefits
Marketing Collateral
Co-branding
Ease of transportation
Exercise/health & wellness advantages
Eco-friendly
Stimulate purchase for personal use
Additional recreational offering
Google
Apple
Yahoo
Dell
Microsoft
Coca-Cola
Nestle
P&G
Unilever
Colgate
Recreational Parks
Central Park, NY
Golden Gate Park, San Francisco
Rochester Park, Dallas
Balboa Park, San Diego
McDowell Nature Preserve, Charlotte
Emma Long Park, Austin
Red Mountain, Mesa, Arizona
Gwynn Falls/Leakin Park, Baltimore
Lincoln Park, Chicago
Anacostia Park, Washington DC
Hotels
Ritz-Carlton
Four Seasons
St. Regis
W Hotels
Morgan's Hotel Group
Conrad Hotels & Resorts
Fairmont Hotels & Resorts
InterContinental
JW Marriott
Mandarin Oriental
Fashion Houses
Zara
H&M
Gap
Polo
J Crew
Tommy Hilfiger
Kenneth Cole
Michael Kors
Marc Jacobs
Abercrombie & Fitch
Universities
Stanford
Harvard
Yale
Princeton
Cornell
Dartmouth
UNC
UVA
UT, Austin
Michigan
Automotive
Mercedes Benz
BMW
Audi
Porsche
Rolls Royce
Bentley
Aston Martin
Ferrari
Lamborghini
Maserati
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8. Competitive Analysis: Summary
Competitor
Retail
Corporate Employee
Program Branding Program
√
Hotel
Fleet
√
√
√
√
√
√
√
√
University
Campus
City Bike
Bike Share
Share
√
√
√
√
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9. Digital Analysis: Competitive Demographic Profiles
BikeStartupX.com
RepublicBikes.com
PublicBikes.com
TrekBikes.com

10. Digital Analysis: Competitive Search Volume
Search volume for “Bike Startup X” was quite strong during 3 distinct time periods
What happened at these spikes and can it be repeated?
100 represents peak
search volume
BikeStartupX
BikeStartupX
BikeStartupX

11. Digital Analysis: Competitive Traffic & Unique Visitor Ranking
BikeStartupX.com’s traffic trails most competitors although SEO recommendations should boost rankings.
Villy
BikeStartupX.com
Republic
Public
Workman
Trek
0
17,366
63,094
100,000
90,006
107,500
117,320
163,626
200,000
300,000
268,984
400,000
380,435
Unique Visitor Rank (U.S.)
500,000
Visitors Rank (U.S.)
600,000
631,880
700,000
12,912