AEROBIKE

BRIEFING - I
Presentation Agenda:
• Brief Overview of Mission, Vision, Goal and Objectives
• Current Market Position ( at the end of Q2)
Market Share
Sales Volume
Financial Performance
• Strategic Analysis
SWOT
PESTEL
Balance Score Card Analysis
• Introduction of Team
President
Business Analysis and Manufacturing
Marketing and Human resource
Sales Management
Accounting and Finance
• Strategy for Q3 and Q4

2
Overview of Strategic Approach:
Mission:
Aerobike believes biking is not just a means of transportation, but a way of life that promotes fitness, adventure, and
exploration. We attempt to provide a variety of items that meet their specific demands while adhering to quality and
innovation guarantees affordability for everybody. Our aim is to create a sustainable business that not only provides
value to our customers but also contributes positively to the environment and society.

Vision:
To be a market Leader in Sport, Recreation and Mountain Segment bicycle by end of quarter 6.

Objectives:
Objective Priority
Market presence (market share, sales volume...) 1
Profits (operating profit, net income...) 2
Shareholder value (earnings per share, net equity, net equity per share...) 3

Cash (ending cash position, cash flow from operations...) 4

3
Overview of Strategic Approach (Cont..)
Goal:
Corporate Goals
Indicator Q2 Position Goal to be Achieved
by Quarter 6
Total demand 1,565 8,000
Total Market Share [%] 27 51
Revenue 15,97,650 1,50,00,000
Net Income 2,46,348 45,00,000
Debt 0 0
Earnings Per Share 12 68
Share of Firm Owned by Executive 100 100
Team [%]

4
OUR POSITION
IN MARKET
Product Portfolio and Current Retail Store Presence:

 Our Products:
Retail Store :
Web Store
Target Segment: Aero Sprint V
 Aero Ezy Ride V Operational:
Operational:
1 – Speed  Aero Hulk X New York City
Bangalore
2 – Recreation Aero Sprint V0
3 - Mountain  Aero Ezy Ride V0 Opening:
 Aero Hulk X0 Amsterdam

6
Market Share :

7
Sales Volume :
Sales - Total
Net Units
Brand
Demand Sold
Aero Ezy Ride V 265 214
Aero Hulk X 594 482
Aero Sprint V 424 344
AeroEzy Ride V0 89 72
AeroHulkX0 54 44
AeroSprintV0 139 113
Total 1,565 1,269

Sales - Store Channel Sales - Web Channel

Brand Net Units Brand Net Units
Demand Sold Demand Sold
Aero Ezy Ride V 164 132 Aero Ezy Ride V 101 82
Aero Hulk X 367 298 Aero Hulk X 227 184
Aero Sprint V 262 213 Aero Sprint V 162 131
AeroEzy Ride V0 55 44 AeroEzy Ride V0 34 28
AeroHulkX0 33 27 AeroHulkX0 21 17
AeroSprintV0 86 70 AeroSprintV0 53 43
Total 967 784 Total 598 485

8
Financial Performance :

Industry Financial Ratios

Ratio Lowest Highest Average Aerobike
Activity Ratios
Fixed Assets Turnover 0.44 1.39 0.96 1.13
Total Assets Turnover 0.25 0.95 0.68 0.88
Profitability Ratios
Gross Profit Margin 53.72 61.50 57.22 55.12
Net Profit Margin -117.60 21.84 -16.73 15.42
Return on Assets -29.09 20.82 0.55 13.60
Return on Paid-In Capital -29.09 20.82 0.55 13.60
Financial Statement Highlights
Revenues 3,04,717 19,61,795 11,96,190 15,97,650
Gross Profit 1,64,646 11,43,985 6,85,053 8,80,552
Net Income -3,58,347 4,28,536 57,857 2,46,348

9
 CURRENT
MARKET
POSITION
STRATEGIC
ANALYSIS
SWOT Analysis:
Strength Weakness Opportunity Threat

• No.1 in All Segment • Poor ad Design and ad • Growing demand for • Competition from other
Market Share except judgement Score. Carbon Fiber bicycle. Players through launch
recreation. • Low Online Sales • Expanding global of New bicycle Portfolio.
• high-quality product Volume compared to market, partnerships • Changing consumer
Portfolio Retail Outlet. with retailers and preference.
• Offline and Online • Limited marketing distributors. • Change in Market Size
Presence budge. • Increasing demand for of the Targeted
• Strong management • Limited Production recreational cycling. Segment.
team Capacity compared to • Internet penetration • Changing Government
• Best Brand judgement market Demand. leads opportunity to regulation or policies.
score for Sport and grow web Channel. • New advance
Second best for Technology
Recreation and Development.
mountain
• High Gross Profit
Margin.
• Demand Greater then
Supply.

11
 • Government regulations on eco-friendly products
• Trade policies
Political • Tax policies.

• Consumer spending patterns

Economi • Inflation
c • global market trends.

• Increasing interest in eco-friendly products

Socioc • Changing consumer preference
ultural • cultural differences in cycling habits.

• Advancements in materials and manufacturing processes

Technol • E-commerce, social media.
ogical
• Product liability laws
• Intellectual property laws
Legal • labor laws.

• Sustainability initiatives
Environ • Carbon footprint reduction
mental • Climate change.

12
Balance Score Card Analysis :
Industry Results for Quarter 2
Indicator Minimum Maximum Average Aerobike Reason for Shortfall
Total Performance 0.000 25.323 9.554 12.714

Less Margin to gain Maximum Market Share

Financial Performance -0.943 47.485 24.977 34.573 Lost revenue and profitability due to less bicycle sales then demand due to
limited Production facility

Not able to sell maximum no of bicycle in targeted segment

Market Performance 0.050 0.265 0.158 0.203 Lost sales due to limited Production facility
Lost of sales in recreation segment due to brand judgment. ( Second Highest)

No ads have score more then 70 in Ad judgement.

Marketing Effectiveness 0.595 0.763 0.690 0.670
Poor ad Design
Investment in Future 4.402 20.162 9.052 5.442 No Shortfall.
Wealth 0.616 1.029 0.829 0.905 less then 1 due to heavy investment in Q1
Human Resource Management 0.590 0.738 0.696 0.726 Less Production and sales and Service Satisfaction Score due to poor basic Pay.
Asset Management 0.240 0.952 0.669 0.865 Loss of revenue due limited Production.
Lost of productivity due to poor production Perosonnel
Manufacturing Productivity 0.486 0.980 0.755 0.875
Loss of Productivity due to operating at maximum capacity.
Financial Risk 1.000 1.000 1.000 1.000 No Shortfall.

13
Team & Individual Domain Analysis

Profile Photo

Mahalakshmi Mahdi David Mihir Rathod Patrick

President- Leadership VP Marketing VP Sales and VP Business Analytics and VP Accounting and
Human Resource Production Finance
Responsible for Responsible for Management Responsible for Responsible for
overall strategy developing and Responsible for managing analyzing market
managing the
and vision, implementing marketingsales and service teams, trends, consumer company's financial
developing sales
overseeing all strategies to increase strategies, Retail and web behavior, Production operations, including
departments and brand awareness, Outlet opening decision and sales data to budgeting, forecasting,
ensuring promote products, and and establishing identify opportunities and financial
alignment with drive sales growth. partnerships with for growth and reporting.
company goals retailers and distributors. optimization. 14
and objectives.
Overall Leadership:
President - Mahalakshmi

Measures taken for

Key Responsibilities Good points Bad Points the improvement
Revised Strategic
Strategy is in line with our Its difficult to obtain Goals and targeted
target objectives with
Responsible for overall strategy and vision and objectives. available resources. segment.
vision, overseeing all departments High gross Profit margin. Low Net Profit Margin. Reduce Expense like
and ensuring alignment with Positive Cash Flow. 2 out of 6 products are marketing and make
Overall Good Product it more effective.
company goals and objectives. mix. loss making. Increase the Price of
2 product.

15
Business Analysis and Production
VP Business Analytics and Production-Mihir Rathod

Measures taken for

Key Responsibilities Good points Bad Points the improvement
Highest Overall Market Increase production
capacity.
Responsible for analyzing Share in All Segment. Limited Production Launch of new
market trends, consumer High demand then Capacity. Product to serve
behavior, Production and production Capacity. Low Production worker market.
sales data to identify High volume selling in Productivity. Upgrade Recreation
Speed and mountain Less no of Vehicle Sales in
opportunities for growth and segment. Recreation Segment. segment Product.
optimization. High Retail channel Sale. Low Web channel Sale. Web channel
development.

16
Marketing :
VP Marketing- Mahdi

Key Responsibilities Good points Bad Points Measures taken for

the improvement
Highest rated brand in
Speed Segment.
Responsible for developing Firm Core Strategy ( More Poor Ad judgement
rating.
Redesign Ad for each
product.
and implementing Value in less price ) is in Low Marketing Upgrade Product to
marketing strategies to line current Pricing of the Effectiveness. meet customer
increase brand awareness, Product.
Mountain and Recreation need.
promote products, and Good Product mix for every Product brand judgment
drive sales growth. segment. need improvement.

17
Sales and Human Resource Management
VP Sales and Human Resource Management- David

Measures taken for

Key Responsibilities Good points Bad Points the improvement
Increasing sales and
Have a Presence
Responsible for managing Online and offline. on Less web Channel Sales service staff
sales and service teams, Staff Productivity. satisfaction rating
Retail outlet at maximum
developing sales strategies, potential Customer for all Limited Financial through higher base
Retail and web Outlet segment. resource for store salary.
opening decision and expansion. Increase sales and
establishing partnerships Large sales and Service Financial constrain to service staff on web
Team Web and Retail
with retailers and Second retail outlet will maximize sales and channel.
distributors. be live in Q3 service team.

18
Accounting and Finance:
VP Accounting and Finance- Patrick
Key Responsibilities
Responsible for managing
the company's financial
operations, including
budgeting, forecasting, and
financial reporting.
Good points Bad Points Measures taken for
the improvement
Limited Financial
resource available to
No Debt. meet production facility Increase Financial
Positive Cash Flow. expansion. leverage by Profit
Good Cash On Hand to Limited Human Resource maximization and
meet financial Expense. hire due to financial raising money
constrain. through equity.
Limited Marketing
Budget.
19
STRATEGY FOR Q3
AND Q4

20
 Area Strategy for Q3 and Q4
Core Strategy Multiple Targeting Strategy -More value for the Money
Improve Brand Management with Constant R&D
Brand development Investment.
Focus on Customer needs to Launch Product.
Design ad which Focus targeted customer needs
Follow low pricing strategy with more value.
Marketing
Focus on aggressive marketing.

Open Store in Bangalore as next strategic location.

Motivate sales and service personnel to increase individual
Sales
sale.
Focus on Web and Retail outlet development equally.
Hire more production, Sales and service personnel.
Provide better compensation then industry average to
Human Resource
increase productivity.

Manufacturing Increase Production Capacity.

21
Thank you!

22