• Gutierrez Cesar• Ibrahim Samera• Joseph Willymena• Piva Benedetta
Introduction• Benji Bikez exports used and completely restored motorcycles to Chile.• Benji Bikez Team Members: – Has experience; – Knowledge; and – Know-how.
Introduction Why Chile?• One of the most prosperous nations within Latin America;• Government policies encourage foreign direct investments;• Most progressive retail sector in South America; and• Strong demand for consumer durables.
Management Plan Human Resources• Mechanic in Atlanta: a reliable person• Two key people in Chile: Alberto Gazzo knows the local motorcycles Cesar Gutierrez industry very well speaks spanish fluently; He will be a representative agent to experience in selling motocycles help us build and manage local marketing relationships in Chile He will develop the market and learn the culture and business environment
Management Plan Location• Santiago de Chile: the capital and the largest city of Chile• The population of Santiago has seen a steady increase over the years• We will rent a place and use it as a dealership• This place has to be large enough to allow us to create a showroom, an office, and a small warehouse where to keep motorcycles before selling them.
Management Plan Shipping• We will purchase motorcycles from local public auctions and sellers and will export them to Chile.• UPS, FedEx or DHL.
Marketing Plan Marketing Objectives• Target young males in growing affluent middle class segment; and• Offer high quality product demanded by the target consumers.
Marketing Plan Marketing Objectives• Exploit our strength: – a solid foundation in United States; and – prior exporting experience of members of our team.• Minimize the affects of our weakness: – being a new entrant of a foreign market environment – by aligning ourselves with an importing agent with local market experience.
Marketing Plan Marketing Objectives• Take advantage of opportunities: – government incentives (bilateral free-trade agreement); – Access to credit; – ranked 49/183 countries for ease of doing business by the World Bank.• Counter threats: – By offering better quality bikes at comparable prices.
Marketing Plan Marketing Objectives• Advertising will be done via: – Radio; – The World Wide Web; and – Various forms of guerilla marketing.• Price determination: – Competitively and strategically set; and – Segmenting and targeting a profitable niche consumer segment.
Financial Plan Income statement• Revenue (in thousands) – Gross sales $250 – Less sales returns & allowance 200 Net Sales $50 Cost of Sales Beginning inventory $360 plus goods purchased 165 Total Goods Available $525 Less ending inventory 500 Total Cost of Goods Sold $25 Gross profit $25
Financial Plan Balance Sheet - 1st year• Assets (in thousands) Current assets Cash $54 Net accounts receivable $367 Inventory $177 Temporary investment $12 Prepaid expense $2 Total Current Assets $612
Financial Plan• We expect to have a great gain in profit after the first two years after our advertising starts to pay off.• We plan on building our clients and start having more advanced orders from our customers.
Financial PlanComparable tax rates between countries such as Chile’s 18% corporate income tax and the United State’s comparable federal corporate income tax.However, after totaling the many different tax brackets:Property + insurance + unemployed + etc= 25% in Chile’s= 46% in United State’s