THERE’S STANDARD BIKES,

Anna Galian, Keiko Hoen, Sean Mohan, Matt Rosenthal

& THEN THERE’S MONTAGUE THERE’S FOLDING BIKES,

AGENDA

Current SituationProblem StatementDecision Criteria

AlternativesDecision Matrix

RecommendationFinancial BenefitsImplementation

Risks & ContingenciesConclusion

CURRENT SITUATION

Current customers: B2B (auto partnerships and military) & B2C (commuters & travelers)

Industry trends Independent bicycle retailers are consolidatingMass merchandisers and sporting chains are growing

Salesmen lack knowledge and incentive to push Product Life Cycle

Only so much room for growth given limited resources and patented technology

Currently positioned as a “bike that folds”

PERCEPTUAL MAP

Montague

Trek

Dahon

Giant

Specialized

Schwinn

Raleigh

Brompton

Strida

Sinclair

PROBLEM STATEMENT

DECISION CRITERIA

Accelerate Product Adoption

Increased product exposure through various

distribution channels

Increase Montague Brand Awareness

Montague emerge as category leader

Align with Product Associations

Maintain performance and lifestyle perceptions

associated with Montague

Develop Consumer Insights

Learn about consumers to develop products that better suit their needs

ALTERNATIVES

Channel Decision License Decision1. Military – 30% of US Sales

US Licensing Agreement

• May deter some consumers

• Volatile demand

• Difficulty selling due to low-volume

• Reach a wider audience• Diffuse technology more

broadly

• Currently partnered with BMW and Hummer

• Explore other partnerships

• Exclusive License• May charge around

10%• Similar to deal with

Schwinn• Non-Exclusive License

• Multiple companies• May charge around

5%

2. Independent Bicycle Dealers – 30% of US Sales

3. Corporate Partnerships – 30% of US Sales

DECISION MATRIX

Accelerate Product

Adoption

Increase Brand

Awareness

Product Associations

Consumer Insights

Military

Bicycle Dealers

Partnerships

US Licensing

RECOMMENDATION

Sell current products to independent specialty

stores

Sell folding bikes to US Military

Maintain Current Relationships and

sales outlets to sell Montague Products

RECOMMENDATION

REALLOCATE RESOURCES

Travelers

Commuters

RECOMMENDATION

Folding Frame Bicycle Fold is on Seat Tube

• Increase product adoption

• Increase sales volume through mass merchandisers and sporting good chains

FINANCES

Revenue Earned

2007 2008 2009 2010

Total Sales Revenue $19.5 mill

$20.9 mill

$22.4mill $23.95mill

Licensing Revenue $3.1mill $4.3mill $4.5mill $4.6mill

Total Projected Revenue

$22.6mill $25.1mill $26.9mill $28.16mill

% growth in sales volume

IMPLEMENTATION

Developing Corporate Partnerships

Increase Brand Awareness & Product Adoption

US Licensing Agreement with Trek

Increase Product Exposure

Gain Marketing Data

Analyze consumer insights & refine our target market

RISKS AND CONTIGENCIES

CONCLUSION

There’s regular bikes,There’s folding bikes,& then there’s

1. Sustain current practices

2. Seek new partnerships

3. U.S. Exclusive License Agreement

23% Increase in Sales Revenue

$16.5mill in Revenue from Licensing over 4

years

Partnerships:• Reach Travelers and

CommutersU.S. Exclusive License:• Increase product adoption• Mass Merchandisers and

Sports Chains distribution

Montague.

APPENDIX