The presentation about Athleta company, what specialized in Women's Athletic Clothing

1. AthletaWomen's Athletic Clothing
ADA University
Entrepreneurship
MBA 2018
ARAZ Abbasov
EMIN Maharrami
ILAHA Zeynalova
JALAL Shiralizadeh

2. First phase - family,
friends, ($700k)
150% annual increment in revenues,
extended staff, 400k orders end of
2002, 231k customers, $ 55 mln revenue
1998
$700k
2002
Foundation Fundraising
Capital
expenditure
C O M P A N Y O V E R V I E W
designed by EMIN M

3. Results
Purposes
Requirements of Kerslake
Venture Capital Firms
Angel Investors
Challenges
S E C O N D P H A S E O F F U N D R A I S I N G
designed by EMIN M

4. Standpoint of an athlete
Founders personal values and approach to market
Motivation behind the vision
V I S I O N
designed by EMIN M

5. Fitness
Membership
Busy lifestyle
1
2
3
4
Sports involvement of women in USA 21.2/15.5
mln
Health Club membership in 2001-58%
Sports apparel spending in USA in 2001,
by women-$25 bln
Busy lifestyle, preventing outlet visits
01
02
03
04
WOMEN’S SPORT’S APPAREL MARKET
Sports apparel
designed by EMIN M

6. Category breaks
Tier 4
Tier 3
Tier 2
Tier 1
1
2
3
4
Woman specific retailers(Lady Foot
Locker, Title9)
Specialty sporting goods retailers(higher
level of expertise)(Fleet Feet, Recreation
Equipment Inc)
Big-box retailers, with broad and deep
product selections for various sports(Big
5, Sport Mart)
Department stores with narrow
C O M P E T I T O R S
designed by EMIN M

7. Potential Sales
strategy for the
product
ProductChannel
Strategy
 Mail orders(70% of
revenues)
 Online
channels(30%
revenues from
Athleta.com)
 Retail outlets(after
2003)
Athleta Essentials-
private line body
wear
Technical apparel
Customer specific
apparel
Sales of a knock off
an existing item at a
lower price
Development of
distinctive product
Low cost-low priced
item/High quality-well
developed item
B U S I N E S S M O D E L
Brand
Designed to
communicate
Catalogued product list
Staff consisted of retired
or part time athletes
 Staff well organized
Customers are trained
Team tried to find best
match for each customer
designed by EMIN M

8. E A R L Y H I S T O R Y
designed by EMIN M
1998
$ 769,000
93,5 k catalogues
1999
19,8 k customers
$10 million vs $2.2 million, $1.2
million
dot.com vs mail order businesses

9. G R O W T H P L A N
$2,2
MLN
$1,2
$769k
SEED
FINANCING
ANGEL
INVESTORS
VENTURE
CAPITAL
MLN
designed by EMIN M

10. G R O W I N G C O M P A N Y
Professional
staff
Teamwork
ethic
Loyal
customers
designed by EMIN M

11. A C T U A L R E S U L T
designed by EMIN M
REVENUE CUSTOMER ORDERS AVERAGE ORDER SIZE ATHLETA HOUSE FILE
1999
2000
2002
2001

12. CATALOG CIRCULATION TO ACQUIRE
LARGER BASE OF CUSTOMERS
SUPPLIER TERMS
HEAQUARTERS AND IMPROVE
MANEGEMENT INFORMATION SYSTEM
ATHLETA’S PRIVATE LABEL-LINE
TEAM EXPANSION AND MARKETING
INITIATIVES
INCREASE
IMPROVE
TRANSER
EXPAND
INITIATIVE
G R O W T H P L A N
designed by EMIN M

13. 1
2
3
VENTURE CAPITAL
ANGEL INVESTORS
COMMERCIAL BANKS
F I N A N C I N G O P T I O N
designed by EMIN M

14. 3
PLANPLAN
2
PLAN
1Cyclical
downturn
More cautious
about investing in
consumer retail
business models
Not high enough
projected profits
V E N T U R E C A P I T A L
designed by EMIN M

15. 2
PLANPLAN
1
Low investments To be partners
rather than
investors
A N G E L I N V E S T O R S
designed by EMIN M

16. 2
PLANPLAN
1Reluctant to
open large credit
lines
Viable source of
bridge
C O M M E R C I A L B A N K S
designed by EMIN M

17. A T H L E T A
HOW SUCCEED?
designed by EMIN M

18. S U C C E S S
More
1st
Affordable
Price
Effective
2nd
Return
PolicyLarger
3rd
selection
Variety
4th
fitness
classes
More
5th
Customer
friendly
Athleta ships items to you at
no charge if you can't find
your size in stores.
designed by EMIN M

19. designed by EMIN M

20. T H A N K S F O R W A T C H I N G
designed by EMIN M