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Multitasking Clothes To FitMultisport Athletes
Co-FoundersKelly SennattJordan Esten
Kelly Sennatt T’12
BeFit Team
• Experienced triathlete• 2005 Graduate of
Dartmouth College• 2005-2010
Director at UBS Wealth Management
• Currently working on a triathlon role-up strategy for Tuck First Year Project
Jordan Esten T’12
• College athlete• 2006 Graduate of
Carnegie Mellon Univ.• 2006-2010
Investment Banker at Robert W. Baird
• Significant experience raising capital for start-up and growth companies
The Average Triathlete…is in their late 30’s…earns $126,000 per year…spends their discretionary income on triathlon…spends $285 per year on triathlon clothing…trains 9-12 hours/week…seeks personal challenge…has high expectations of themselves and their gear
Sources: SGMA/Sports Marketing Survey and the Tribe Group/USA Triathlon Survey
Participation in Triathlons….The Market
0.8 million
1.09 million
1.20 million
...continues to grow2007 2008 2009
The Need
What we heard from Tuck Triathletes…
The Products – Unit Breakdown
BeFit Women’s Swimsuit
$80Selling Price
$35Production
$15Material
$30Gross Profit
37.5%Margin
$130Selling Price
$60Production
$18Material
$52Gross Profit
40%Margin
Biking / Running Tights
Launch line:• Swimsuits• Hybrid run/tri
shorts• Hybrid run/tri
tights• Long sleeve top• Short sleeve top• Sleeveless top
All products will come for men and women in numbered sizingBottoms will come in three lengths: short, regular, longColor scheme will be black, gray, white with small colored accents and discrete logos
*clothes and gear only; excludes race fees, coaching and travel
The CustomerDabblers
“Entry-level everything”
Competitive and Aspirational Participants
Serious Competitor“Performance at
any price”
Why Tri• Personal challenge• Weight loss/fitness• Complete 1st triathlon
• Personal challenge• Desires continuous
improvement• Structured training
• Achieve personal best• Qualify for big races• Results for club team
Needs
• Generic training clothes
• Need 1-2 technical pieces for race day
• Mix of generic, tech and tri-specific gear
• Several race outfits• Begin upgrading
• Close to pro level tri & sport-specific gear
• Buys multiples in the best quality
Purchase
• Price• Recommendations of
friends or local shop• Versatile pieces
• Fit, style, sport-specific use
• Performance• Multi-use, versatility
• Most advanced and technical
• Race day credibility• Look to gear to save
time
Budget* To start: $1,000Per year: $100-200
To start: $2,000-5,000+Per year: $250-500
To start: $12,000+Per year: $1,000+
Target Customers Training Only Line
Production & Design
Partner with industry experts
in design, sourcing and production
MarketingAthlete
outreach, online promotion
through social media, trade-
specific advertising
SalesSales staff at
events so customers can see the product
plus online storefront driven by fit and sport
The Operating Plan
Competitive LandscapeCompetitors
Customer Base
Emphasize style and comfort
Emphasize technical
look
Tri-Specific Niche Player
Multiple Sport
Apparel Players
Ath-leisure
Performance and Participation
Pro Athletes
BeFit
Running, Swimming
and Cycling
Use core base in triathlon to
reach participants in our component
sports
Growth Opportunities
Fitness and Training
Reach the segment looking to improve their daily workout
experience, both inside and
outside the gym, regardless of their sport
International Expansion
Use our international
business experience and
contacts to grow primarily in
Europe and Asia
Stage 2 Stage 3 Stage 4
Financials
Comparables
2012 2013 2014 2015 2016
Triathlon Market
Market Participants 1,607,848 1,768,633 1,945,496 2,140,046 2,354,050
Market Growth 10.0% 10.0% 10.0% 10.0% 10.0%
Average Spend $285 $285 $285 $285 $285
Market Size $458,236,680 $504,060,348 $554,466,383 $609,913,021 $670,904,323
BeFit Market Share 0.1% 0.5% 1.0% 2.0% 3.0%
BeFit Financials
Revenue $458,237 $2,520,302 $5,544,664 $12,198,260 $20,127,130
COGS $297,854 $1,537,384 $3,271,352 $6,953,008 $11,271,193
Gross Profit $160,383 $982,918 $2,273,312 $5,245,252 $8,855,937
Margin 35.0% 39.0% 41.0% 43.0% 44.0%
SG&A $229,118 $882,106 $1,829,739 $3,781,461 $6,038,139
R&D $68,736 $189,023 $249,510 $487,930 $805,085
EBIT ($137,471) ($88,211) $194,063 $975,861 $2,012,713
Margin -30.0% -3.5% 3.5% 8.0% 10.0%
Sources: Tribe Group/USA Triathlon Survey, Management Estimates, SEC Filings
15% 21%
50% 54%
UA LULU
Includes growth in triathlon
market, and excludes
Stages 2,3,4
Firm quotes from potential design and manufacturing partners
More in-depth financial planning
Create sample line of 3-4 pieces and test with athletes
Test launch during summer race season
Refine line then launch web sales and wider marketing campaign
Next Steps