Exploration of expanding an existing business into a new market

1. ELISA APONTE, FRANK CUNHA, MARIAN EKLADIOUS, WILSON ROBLES
Oceania
Experiences of a Lifetime

2. AGENDA
• Executive Summary
• Business Description
• Market Definition
• Analysis of the Proposed
Business Environment
• Product and Service
Description
• Organization and
Management
• Market Entry Strategy
• Marketing and Sales Strategy
• Financials
• Summary
2

3. 1.EXECUTIVESUMMARY
3
• The Company Vision
• What We Do
3

4. OUR VISION
You’ve loved bicycles since you were a kid, flying free down your neighborhood street. Our roots capture that same exact
feeling, only the world is your neighborhood. So, whether you’re an old pro or a beginning rider, you’ll feel right at home.
We pick the best, most classic, postcard-worthy routes in every location, so you’ll leave feeling like you have a sense of the
curves that make it unique. And together we rediscover the same fun you had on a bicycle back when you didn’t have a
care in the world. The wind in your hair is just the start and incredible routes for all abilities is our true vision.
TREK TRAVEL OCEANIA 4

5. WHAT DO WE DO?
o We passionately believe in the invigorating
enjoyment of experiencing the world on a
bicycle
o It’s why we do what we do – but what it’s
really how we do it that sets us apart
o On singular passion and focus is on providing
our customers with exceptional hospitality at
every moment of their vacation
o We are constantly raising the bar with the
latest Trek bicycle upgrades that can take any
one from a beginner to a pro while traveling
around the world exploring the most
beautiful destinations 5
5

6. 2.BUSINESS
DESCRIPTION
6
• Mission Statement
• Goals and Objectives
6

7. 7TREK TRAVEL OCEANIA 7
MISSION
STATEMENT Oceania

8. GOALS & OBJECTIVES
• Expansion into Oceania and
Pacific-Asian Market
• Diverse selection of unforgettable
cycling experiences
• Create lasting memories with
friends or family
• Explore stunning landscapes
• Rejuvenate in truly unique
accommodations
• Our passion is to be the best and to make
adventure accessible doing things right in
the right way
• We know how to inspire everlasting
memories and truly believe that you’ll the
difference once you experience it
• It’s our job to find the best roads,
hotels, town, food, routes and
attractions and introduce them to
you
• All on bikes that you’re guaranteed to
love
YOUR COMPANY NAMETREK TRAVEL OCEANIA 8

9. 3.MARKET
DEFINITION
• Market Size & Growth
• SWOT Analysis Diagram
• Competition Analysis
• Market Need
• Target Market
YOUR COMPANY NAMETREK TRAVEL OCEANIA 9

10. MARKET SIZE & GROWTH
• Australia's mixed market economy is a
prosperous, Western market economy where
the GDP is high and the rate of poverty is low
• Their free market is among the first five
developed countries of the world and we expect
growth for their robust economy making this a
perfect destination for Trek Travel
• Australia has become one of the most attractive
tourist spots in the world with 9 million visitors a
year
TREK TRAVEL OCEANIA 10

11. TREK TRAVEL OCEANIA 11
SWOT ANALYSIS DIAGRAM
SWOT
Strengths Weaknesses
Opportunities Threats
• Enhance domestic tourism and promote
cross-border tourism
• Promote active and healthy tourism
• Offer Australian residents and tourists a
better quality of life
• Offer "slow" tourism that fosters
interest in the richness of local cuisine,
the heritage and life of the communities
traversed
• Slight deficiencies in the hotel plant of
the region, especially in high season
• There are no companies dedicated to the
rental of medium-high end bicycles
• Intensity of moderate traffic on some
routes, especially coastal routes
• Promoting cycling in tourist areas
• Exploit natural beauty of the region as well
as its premier travel destinations
• Have a strategic plan and act in the
medium and long term as a reference
tourist destination in terms of cycling
• Lack of roads or safe roads for the use
of the bicycle in interurban roads
• Sensation of insecurity in the use of the
bicycle
• Lack of funding for the maintenance
and improvement of the current road
infrastructure

12. MARKET NEED
• The tourist cycling is one of the largest sports categories in the
world, with a market volume of US $45B per year
• Cycling has become one of the star sports of the whole world
population, and fashion has not been exempted from participating
in the bicycle boom that has shaken the world in recent years
• The total turnover of the category of bicycles, which includes both
vehicles and accessories and clothing, is estimated to go from the
current US $45B to US $62B at the end of the period
• The Asia-Pacific region is expected to grow in the coming years
12TREK TRAVEL OCEANIA 12

13. In recent years, sports in general have
developed remarkably as a leisure activity,
especially thanks to the growth of the need
to be fit and healthy.
Cycle Tourism
• Health and Wellness
• Fitness Goals
• Increase Quality of Life
• Get Away From Routine
• Social Enjoyment
• Community Connection
Target Segment
• Men and Women
• 25 to 65 years of age
• High Income
• Minimum of Undergraduate
College Degree
YOUR COMPANY NAME
MARKET NEED
TREK TRAVEL OCEANIA 13

14. TARGETMARKET
• Occupation
• Income
14TREK TRAVEL OCEANIA

15. 4.BUSINESSENVIRONMENT
• Political
• Economic
• Social and Cultural
• Technology and
Infrastructure
• Economics
• Legal
15TREK TRAVEL OCEANIA

16. YOUR COMPANY NAME
P.E.S.T.E.L.
TREK TRAVEL OCEANIA 16

17. 5.PRODUCTANDSERVICE
DESCRIPTION
• Our Services
• Our Products
• Competitive Advantage
17
Voted a 2018 Travel
+ Leisure
World’s Best Tour
Operator!
TREK TRAVEL OCEANIA

18. OUR SERVICES
All of our tours are guided by the friendliest tour guides who
know the routes. All of our tours come with a premium Trek
bicycle, guaranteed to meet your needs.
Our People
• First Class
Service
• Tour Guide:
Friendly and
knowledgeable
of the routes
• Safety First:
Certified in CPR
and First Aid
• Support Vehicle:
Road side
assistance
YOUR COMPANY NAME 18TREK TRAVEL OCEANIA 18

19. 19
• Premium Trek Bicycles
• Premium Gear
• Safety Equipment
• MIPS BPS Helmets
OUR PRODUCTS
Our Bicycles
Our Reputation
TREK TRAVEL OCEANIA 19

20. 20
COMPETITIVE
ADVANTAGE
TREK TRAVEL OCEANIA 20
COMPETITIVE FORCES INTENSITY REASONS
Supplier power Low
 Trek bikes will supply us with 100% of our bicycle
stock
Buyer power Medium
 Many options but less known brands, inferior
products and services
Competitive rivalry Medium
 There are only a few cyclo-tourism companies in the
market
 There are only a few cyclo-tourism companies with
the brand recognition of Trek Travel
Threat of substitution Medium
 Alternatives to bicycle tourism
 Active tourism companies, activities offered by hotels
and public institutions
Threat of new entry
Low-Medium
 Low volume of investments
 Procedures for incorporation
 Long implementation period
 Barriers to exit: low
 There are no significant material investments to
recover their value
Other Threats Low-Medium
 Negative general mass media news reports on
cyclist/motor vehicle collisions (TV news, social
media, radio, newspaper, etc.)
 Influence of other companies and organizations that
may procure our services

21. 6.ORGANIZATIONANDMANAGEMENT
• Organization Chart
Oceania
21

22. WHO IS OUR
TEAM?
TREK TRAVEL OCEANIA 22

23. 7.MARKETENTRY
STRATEGY
23
• Entry Modes
• Company Legal Structure:
Joint Venture
TREK TRAVEL OCEANIA 23

24. 2424TREK TRAVEL OCEANIA 24

25. 25
WHAT IS OUR
MARKET ENTRY
STRATEGY?
TREK TRAVEL OCEANIA
Early Entry first-mover advantages:
Barriers to new entrants
Cost advantage
Build brand and market share
Social ties
Trek Travel Oceania will partner with Trek Travel to establish a successful global
presence
Although Trek Travel has been able to penetrate many markets around the
world, the Pacific-Asian market has been dormant due to the fact the company
is half way around the world. By creating a joint venture, we will be able to
establish presence in the Oceania region and assist the parent company growth
through expansion
25

26. 8.MARKETINGANDSALES
STRATEGY
• Product Positioning Strategy
• Distribution Strategy
• Pricing Strategy
• Promotion Strategy
• People
• Physical Evidence
26TREK TRAVEL OCEANIA

27. 27
26TREK TRAVEL OCEANIA 27TREK TRAVEL OCEANIA 27

28. WHAT TO EXPECT
• Our passion is to be the best and to make
adventure accessible doing things right in the
right way
• We know how to inspire everlasting memories
and truly believe that you’ll the difference once
you experience it
• It’s our job to find the best roads, hotels, town,
food, routes and attractions and introduce
them to you
• All on bikes that you’re guaranteed to love
28
Voted a 2018 Travel + Leisure
World’s Best Tour Operator!
TREK TRAVEL OCEANIA 28

29. ROUTES
• EASY ROUTE - Estimated
1.5-2 Hours (with one break)
• MEDIUM ROUTE - Estimated
3-4 Hours (with two breaks)
• DIFFICULT ROUTE - Estimated
6-7 Hours (with four breaks)
2929TREK TRAVEL OCEANIA 29

30. WHAT IS OUR
MARKETING
STRATEGY?
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31. 9.FINANCIALS
• Estimate of Start-up Costs
• Projected Income Statement
• Projected Cash Flow
Statement
31TREK TRAVEL OCEANIA

32. WHAT ARE
OUR START-
UP COSTS?
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33. WHAT IS
OUR
PROJECTED
INCOME?
33TREK TRAVEL OCEANIA 33

34. WHAT IS
OUR
PROJECTED
INCOME?
34TREK TRAVEL OCEANIA 34

35. WHAT IS
OUR
PROJECTED
CASH FLOW?
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36. 36
36
IT’S NOW TIME FOR
YOU TO HAVE
Experiences of a Lifetime
TREK TRAVEL OCEANIA

37. THANK YOU
TREK TRAVEL OCEANIA TEAM
www.TrekTravelOT.com