Concrete Carbon Parts, a California-based company, designs and markets a variety carbon fiber seatposts for road bikes and mountain bikes. The company was formed as a California L.L.C. The company was established as a California L.L.C. and has been operating out of the home of the owner for the past year. The company has sold individual seatsposts through the Internet to customers and the owner wants the company to go to the next level.
The products
Concrete Carbon is a supplier of high-end carbon fibre seatposts. The shafts will be made out of custom drawn carbon fiber and the head unit will be CNC machined out of 6000 series aluminium. Josh developed a post design that is safe and secure through extensive torture testing. Concrete Carbon is able offer a high-end, lightweight seatpost for road and mountain biking applications. These posts are very comfortable and safe due to the natural ability of carbon fiber to disperse vibrations. Concrete Carbon has never had a seatpost go sour.
Concrete Carbon’s competitive advantage lies in the product. It is capable of offering a range to best fit each rider. The range of posts are based on rider weight. No other manufacturers offer custom fitting. This is quite valuable as the ride, safety margin, and weight are all significantly effected by the way the post is tuned. By having the post tuned to rider’s specific weight range, the maximum weight is possible. Ride quality and safety will also be improved by allowing for sufficient flex, which dampens road and trail vibrations. The post’s flex is so great that it can be compared to suspension.
Concrete Carbon will utilize an outsourcing model to produce. Concrete Carbon can then concentrate on what is most important, serving the customer. Two industry leaders will outsource production. Josh will supply the subcontractors with the design details. The parts will be made to order by them. Josh’, Concrete Carbon’s prior networking connections, was a key factor in selecting the subcontractors. They were also selected for their capacity to scale production as required.
The Market
Concrete Carbon currently only sells seatposts direct to customers. In order to grow the business, Concrete Carbon needs to begin selling to new customers. Concrete Carbon has decided to start selling to distributors. With 3433,0009 potential customers, the annual growth rate for individual customers stands at 10%. Distributors are at 4%, with 14 potential customers. While the growth rate of distributors is not that high the sheer volume that distributors will sell and buy relative to the individuals makes the potential market very exciting.
Marketing
Concrete Carbon will utilize two marketing strategies that are very different to reach potential customers segments. Concrete Carbon will use the website to make concrete carbon’s parts more visible to consumers. The website has been in operation for a year. Continuous improvements will be made to it. Concrete Carbon will participate in various trade shows and develop business relationships with different distributors. The trade shows offer the best opportunity to form close relationships with prospective distributors. Concrete Carbon will have the opportunity to build trust through participation at trade shows, since business relationships are built on trust.
In Year 1, sales will reach $119,000, and rise to $332,000 by Year 3. Concrete Carbon Parts will see a steady increase in profitability and gross margins over the next three-years.
1.1 Keys to Success
- Products precisely designed.
- All promises to customers and vendors must be kept.
- Strict financial controls.
1.2 Mission
Concrete Carbon Parts is dedicated to creating the highest quality carbon seatposts. It will emphasize lightweight, comfort and a realistic safety margin for all of our products.
1.3 Objectives
- To be the most trusted carbon-seatpost bicycle manufacturer.
- Concrete Carbon must increase its sales in order to become a sustainable company.
- You can significantly increase your sales by entering a new market segment.
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