Tuesday, August 3, 2010

The business plan: who will buy

The buyer of the company's frames are independnet bike stores (IBS) that serve the dedicated amateur cyclist nationwide. The target IBS is located in cities, it has high income, masters cyclists as customers who are "I want it right" rather than "I want it now" consumers; it has accounts with high end component and wheel manufacturers; retains knowedgeable staff and supports amatuer racing among other things. The company seeks to complement the brand selection of an IBS with a choice that is high quality, good value and customized for the consumer and profitable and low risk for the IBS. The company does not envisage selling frames directly to consumers because the consumer will always need and want the support of the IBS. Additionally, the company will always need and want the goodwill and support of the IBS. The company is not trying to cut out the IBS from the market; rather the company seeks to help the IBS reduce its risk and better serve its customers using the principals of frugal innovation. The fundamental difference between the company and other manufacturers is that the company does this by retaining the IBS to be an agent of the company's brand. This allows the IBS to better match supply with demand and liberates the IBS from buying a dozen fully built bicycles up front months in advance.

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