Adventure for All E-Bike Tours

Adventure for All
Produced For:
Copeland Associates Managers
College of Business
Ohio University
Prepared By:
Team 7
Mid 101
1
Cameron Huey
David Young
Nick Winnenberg
Jack Summers
Christopher Laux

2
Overview................................................................................................ 3
Environmental Analysis ..........................................................................5
Macro-environment..........................................................5
Local Environment.............................................................6
Key Success Factors .......................................................... 7
Competition……………………………………………………………………8
Strategy………………………………………………………………………………………………9
Mission / Vision………………………………………………………………9
S.M.A.R.T. Goals………………………………………………………………9
Objectives……………………………………………………………………….9
Marketing…………………………………………………………………………………………..10
Timeline………………………………………………………………………….11
STP………………………………………………………………………………….12
4 P’s…………………………………………………………………………………13
Information Software …………………………………………………………………………14
Demand Scenarios………………………………………………………………………………15
Secondary……………………………………………………………………….15
Primary…………………………………………………………………………..16
Financial Projection…………………………………………………………………………….18
Table of Contents

We are Island E-Bike Tours. We are an E-Bike
rental and tour organization operating on the
Big Island of Hawaii. We offer pedal-assisted
technology on all of our E-bikes that boost the
efficiency of every stroke by up to 150%. With
this technology, the entire family can adjust
the bike to stay close together, without anyone
struggling or falling behind. Our bikes are
equipped with GPS counsels that have all of
the wonderful tourist destinations already pre-
loaded on the machine, ensuring that you will
have the best adventure possible!
Overview
• No Tour Guides
• No Timelines
• Preloaded GPS Counsels with destinations
We have used GPS and E-Bike technology to
organize tours without using guides. This
offers a unique tour alternative that has not
been done by any competitors. We equip
each of our bikes with GPS counsels that are
preloaded with tons of the most popular
tourist activities. The patrons simply select the
destinations that they are interested and
follow the GPS direction to get there. The
main selling point of this style of tour is the
ability to have free reign of the island, without
anyone telling you what to do, or strict
timelines. The GPS will direct the patrons
between stops and the assisted pedaling
features of our E-Bike will make it easier and
more convenient to get there.
Our target demographic for these types of
tours include young travelers and those who
want to have some privacy. (Young
newlyweds and college vacationers.)
Freestyle ToursGuided Tours
• Professional Guided Tour
• 4 Pre-designed routes
• Informational and Engaging
This appeals for those who prefer the
traditional touring method with highly trained
and friendly tour guides. The patrons of our
company will still be using the same style E-
bikes with the pedal assisted technology. This
will ensure that everyone in the tour group
can keep pace with each other and enjoy as
much of the island as possible.
We will have four predesignated tour routes.
One that leads to the beach, the volcano, the
rainforest, and one to the Rift. Each of the
tours have different stops along the way. This
will present an adventure for everyone in the
family. These tours will be led by our skilled
staff, who are trained in first aid and CPR. We
will try to gain employees from local sources.
We will offer competitive pay for the tour
guides.
Our target demographic for this operation is
families. Typically adults who travel to Hawaii
with kids want to experience the island, and
what better way to do this then on one of our
E-Bikes to ensure that no one gets left behind.
3
Adventure for All
Overview – External Analysis – Internal Strategy – Marketing Strategy – M.I.S. – Demographics – Financials

This National Park is the most visited
attraction in Hawaii. They typically average
around 3 Million visitors per year. This is the
location of the worlds “most massive”
volcano, named Mauna Loa.
We are going to locate our main headquarters
along crater rim, an eleven-mile road that
surrounds the summit of the volcano. The
tourists will have the option to partake in
various other recreational activities such as
hiking, and scenic stops around the rim. The
exact address would be along Mamaloha
highway near the Hawaii Mountain Golf
Course. This will allow good access to the
Crater Rim Circuit and the beach route access
as well as being closer to the main tourist
accommodation areas.
We will offer various guided routes including
beach and mountain bike routes to take
patrons up the mountain and to the beach.
Most of the routes go along one lane paved
road. A couple of the roads that we will be
using include Saddle Road, Route 11, and
Route 130.
While the big island it fourth in terms of total
daily expenditure at $169 per person; they are
the second highest in entertainment and tour
spending at $17 per day per patron.
Hawai’i Volcanoes National Park
The E-Bike Technology
Of course, our company relies heavily on the
development of electronic bike technology.
These bikes have an electronic motor, that
assists in pedaling. This does not eliminate the
need to peddle. it just increases the efficiency
and decreases the total amount of effort
required.
The average Electronic Assisted bike increases
the peddlers efficiency by 150%. With this
efficiency boost, it is much easier to travel
long distance's and in up-hill settings. The
Electronic Assisted motor kicks on at a flip of a
switch, to help conserve power during flat and
down hill sections.
4Overview – External Analysis – Internal Strategy – Marketing Strategy – M.I.S. – Demographics – Financials

Political
• State Park Permits
• Regulations regarding safety
• Bike laws
• CFC- Brake times, reflectors, helmet
standards.
• Transport Classification – Under the
same bike laws in Hawaii
(Mintel, 2015) (NBDA, 2014)
(SD Fly Rides, 2014)
Economic
• 13% of recreation trips are spent on
bike trips
• Low Start-Up Costs
• 48.1% Growth in E-Bike Sales
• $6.8B Industry projected with 3.5%
growth annually
• E-Bike is the most sold Electric Vehicle
(Ebikes, 2014) (IBIS, 2015)
Social
• Baby-boomers are riding more often.
• Older people can use E-bike easier
then traditional bikes. (55+)
• 75+ - 87 days a year
• 2.4% growth in Disposable Income
• 3% growth for International Tourism
• >2% growth in domestic tourism
• Health and Leisure Tours Increasing
• Climate allows us to operate all year
around.
(Hawaii Tourism, 2013) (IBIS, 2015)
Technological
• “Green Branding”
• Easier to use for entry level
participants.
• Development of E-Bike technology
within the industry
• Audio-GPS systems growing at 2.5%
annually (Garmin) (Needs research)
(Garmin 10-K, 2014)
After constructing the PEST analysis, it became
clear that the largest political factors effecting
our individual industry relates primarily to the
transportation classification of E-Bikes.
Currently in the state of Hawaii, these bikes
are under the same legal scope as regular
bikes. This means that riders have the ability
to maneuver these bikes in bike lanes, avoid
traffic, and can use them at any age. This
legislation is not expected to be altered any
time soon, and directly relates to our
company.
Another political factor incorporated with our
company is the restrictions that the Cycling
Federal Committee puts on safety laws. They
incorporate laws requiring reflectors, brake
times and helmets.
Political Takeaways Economic Takeaways
The first economic fact that needs to be
considers as a crucial takeaway is that over the
last three years there has been a 48.1%
growth in E-Bike Sales. This directly relates to
our company because it proves the increased
amount of attention the E-Bikes are
generating. This being said, the E-bike is the
most commonly purchased electric vehicle.
Tour operators in general compete in a
medium sized industry, with revenues close to
$6.8B and an expected annual growth of
around 3.5%. This fact, paired increased sales
rate of E-bike create an equation that will lead
us towards success.
Macro Environment Analysis

The parent industry of the tour guide segment
is the domestic tourism industry. This industry
is growing at a rate of 2.2% annually and
generated $960.2B last year alone. The largest
factor relating to this current and expected
growth is the increase in disposable income.
With more non-designated income people are
going on more vacations.
More specifically in our industry, there has
been an increase in the amount of health and
leisure tours, and cycling interest in the older
generations. Last year alone, senior cyclists
(75+) biked an average of 85 days a year. Our
bike rental service on Hawaii will include that
group, to maximize profits.
Social Takeaways
Our entire business is focused around our E-
Bikes. The technology surrounding these new
inventions are continuously being developed,
meaning that we will have to maintain our
competitive placement on the cutting edge of
this technology.
This new technology has made it much easier
for everyone in the family to enjoy our self-
guided bike tours. With the ability to have
pedal assisted technology for up to 2 hours on
our bikes, anyone can flip it on when they
need a little boost. This will allow the patrons
who are attempting to climb the Mau Lau
Volcanos, an easier journey.
Technological Takeaways
Threats of New Entrants High- Due to the low Start-Cost and low barriers of entry
associated with the tour operators.
Threats of Substitutes High : Moped, Bike, Walking, and Bus tours are all possible
substitution for E-Bike Tourism.
Internal Competition Medium - Pedigo Kailua are hosting E-Bike tours, but on
Oahu, not the big island. There are a couple smaller
companies on the other islands as well.
Supplier Power Medium Supplier Power- Due to lack of competition in their
industry, and medium competition in ours.
Buyer Power Medium- High due to substitution, low due to internal
competition.
Local Market Analysis
The most potentially problematic factor in our
local market is the threat of substitution. We
have picked a location with a very large tourist
base. This works for us because of the sheer
volume of people coming to Hawaii, but works
against us because they have more options to
pick a different type of tour.
This is why it is important to differentiate
ourselves from the external completion. We
need to focus on advertising the benefits of E-
Bike rental against the other types of tours.
These tours include ATV, walking, biking and
horseback riding tours of the Big island.
Another slightly less prevalent issues arises
because of the threats of new entrants. While
low barriers to entry works well for us, it will also
work well for our future competition.

After looking at the external factors working
with and against us, the development of Key
Success Factors, or objectives was the logical
next step. Our factors include the creation of
external agreements, user friendly and exciting
GPS audio tours, and the adventure vacation
orientation of our company as a whole. If we
follow these Key Success Factors we will offer
a much more competitive tour agency, and
maximize the potential of our company.
Key Success Factors
• Partnerships with hotels and agents
• Competitive discounts
• E-Bike racks at restaurants and hotels
Our next key success factor / objective is to
establish external agreements with hotels,
restaurants, taxi services, rental car companies
and travel agents. These practical partnerships
will benefit us in terms of marketing and by
offering value towards our customer base.
One thing we can offer is competitive
discounts with theses agencies. The coupons
can go both ways. We will offer coupons and
discounts for restaurants, to encourage our
patrons to go and visit the businesses and
hotels will offer coupons for our services.
Another portion of our external agreements
relates with the storage and security of our
bikes, while visiting these establishments. We
need to ensure that all of the facilities have
bike racks and have nearby outlets to charge
the bikes.
KSF #2: External Agreements
• Safe route guidance
• Tracking and information software
• Location and emergency services
We need to work closely with GPS providers to
ensure that our patrons have access to a
powerful, yet user-friendly GPS device. This
device can lead the patrons on self guided
tours through the mountain and around town.
All of the devices come pre-loaded with routes
for the patrons to enjoy.
Using the location information gathered from
devices, we will be better able to market our
products based off of routes and popular
destinations. For example, if the majority of
people prefer the beach trail, rather than the
mountain trail, we can more accurately target
that demographic.
Lastly, these devices provide a safety tool, in
case the patrons of our service get lost, or
encounter an emergency. These devices will
have direct communication with our
headquarters and the emergency stations
located around the island. This will help limit
our liability and offer a package that appeals
to family. Even though the patrons are not
touring with a guide, they will still feel safe,
only being one button away from help.
KSF #1: User Friendly GPS Audio
Tours
• Adventure branding
• Display all of the benefits of E-bikes
As discussed in the environmental analysis, we
need to differentiate ourselves from the
substitute companies on the island. The first
way we can do this is by ensuring that we have
a strong brand that is associated with the idea
of having a relaxing and adventurous
experience on the island.
Secondly, we need to effectively convey all of
the advantages of renting an E-bike as
opposed to any other type of tour. We can do
this by offering demos, elaborate brochures
and allowing easy access to information
relating to E-Bikes and our company.
KSF #3: Adventure Vacation
Orientation

There are currently no E-Bike tours or rental
agencies on the Big Island of Hawai’i. The only
other large E-Bike rental agency is located in
Oahu, where our organization is located on
the Hawai’i . This gives us a geographical
advantage, through isolation.
The tour operator in Oahu is called Pedego
Kauila and primarily do guided tours and trails.
This differs from our organization because we
provide the bikes, and the GPS technology to
create self guided tours to allow greater
freedom. This does not limit the time, at each
of the major locations and allows more
freedom for the riders.
Yet the presence of E-Bike in the other island
in Hawaii suggests that there is a market for
our company. We can also use these
organizations as a benchmarking tool and to
help create more accurate projections for our
company.
Internal Competition
Automobile Rental Agency
We offer our product on a weekly basis that will
be competing with traditional automobile rental
agencies. Of course what we are lacking for in
speed, but it is more of a relaxing experience.
Also you do not have to worry about parking,
traffic or insurance claims, and it is much lower
cos.
Kilauea Volcano Bike Tour
They offer many of the similar packages that we
have. Yet we have differentiated ourselves from
them in a number of different ways. First we
offer more diverse tours and rental packages, as
well as offering our electric-motor assisted bikes.
This will allow more people to use our company,
due to the assisted pedaling and increased
efficiency of the bikes.
Fire and Falls Helicopter Adventure Tour
The largest difference between us and a
Helicopter tour is the obvious contrast between
being on an E-Bike versus being in a Helicopter.
Our tours and rentals offer much more freedom
and are more family oriented.
ATV Tours
There are three different companies currently
doing ATV tours on the island. The first of these is
called ATV outfitters Hawaii that offer hourly
tours through the central portion of the island.
Another example of is called Ride the Rim tours,
that offer ATV tours on the Road boarding the
Volcano.
Horse Back Riding Tours
There are four companies currently offering
horse back tours on the Big Island. These are
Dahana Ranch, Kings Trail Rides ,Naalapa Stables,
Paniola Adventures.
External Competition
8

Strengths
• Freestyle touring
• E-Bike technology allows
everyone to participate
• Innovative technology
Weaknesses
• High relative technology costs
• Insurance costs
Opportunities
• Low local internal
competition
• Cross-island selling
• Low Start-up
Threats
• High Rate of Substitution
• Attractions on other islands
• Low Barriers to entry
Company Strategy
Mission StatementVision Statement
We strive to give travelers a unique and
beautiful Hawaiian Experience, while
unlocking their inner explorer. If it is a
scheduled E-Bike Tour, or just a rental of one
of our quality bikes, you will visit many of
Hawaii most beautiful attractions. We will
provide an excellent experience by providing
high quality gear and by offering a large variety
of exciting and safe expeditions.
To provide premier, fun and safe electronic
biking adventure that the whole family can
enjoy.
Objectives
• We will provide a unique experience by
offering E-Bike with pedal assisted
technology so everyone in the family can
keep up, and more time can be dedicated
to adventure.
• We will offer guided tours that will engage,
educate, and entertain the patron. These
tours will be at exciting locations that show
case the beauty of the island.
• We will provide the E-bikes and the pre-
loaded self guided tours to allow Freestyle
touring where the patrons can design their
own routes and take there time
S.M.A.R.T. Goals
• Purchase and maintain at least 30 E-bikes at
all times.
• Purchase and maintain at least 30 GPS
counsels at all times.
• Program a minimum of 30 tourist locations
on the systems, within the week of
operation.
• Program a minimum of 20 sponsors
locations onto the GPS.
• Put the locations on our website and
brochure with at least two pictures of each
location.
• Offer ‘panic button’ on all E-bikes in case of
emergency
Adventure, Freedom, Family
9

10
• Targeting Travelers already in Hawaii
• Aggressive Marketing approach
Our primary customer is those who are already
traveling in Hawaii. The reason for this is that
our consumers will not travel to our location
exclusively for our service. We need to adopt
an aggressive marketing strategy, because we
have no chance to benefit from them when
they leave the island.
The average traveler stays on the big island of
Hawaii for 7.1 days. This means we have 7 days
to inform them of our service and entice them
into using our service. This does not seem like
a lot of time, but travelers stay on the big
island for more time than any other of the
Hawaiian islands. (HTA, 2013)
This is why we have incorporated many
different advertising techniques into our
model. These techniques include, online
advertising, print advertisements,
partnerships, sponsorships of healthy snacks at
bars, demonstrations, and Hotel TV
advertisements. See the next page for more
details
Marketing Strategies Overview
• Bosch – E-bike Supplier
• UNFI – Food and Drink Supplier
• Garmin – GPS Supplier
Our largest supplier will be focused around
Bosch E-Bikes. Creating and maintaining a
relationship with Bosch will help us control
costs. We contacted them directly and they
offered us a bulk price of $2500 per unit if we
buy more than 20 units.
We are also working with UNFI, a natural
product wholesaler that we are working with
to provide us with healthy food items. We are
also working with Garmin who quoted us with
a bulk price of for $250 per unit if we buy
more than 20 Bike GPS Systems.
Supply Chain
• Hotels
• Restaurants
• Tourist Stops
Our main focus would be on creating
partnerships with local businesses. The largest
potential for this strategy is getting in with
hotels and restaurants. We will put them in as
tourist locations on our pre-loaded GPS maps.
In exchange we will install our E-Bike charging
facilities and our secure bike racks. These
stations would offer more freedom for our
freestyle by increasing their range, as well as
an advertising tool to attract new customers.
Partnerships
20%
15%
20%
15%
10%
10%
10%
Marketing Focus Print
Demonstrations
Online
Partnerships
Sponserships
Social Media
Hotel TV Ads
Bar Chart to break down pie
chart

11
Marketing Timeline
Traveler creates itinerary
Traveler goes to airport
Traveler flies to Hawaii
Travels to hotel Shuttle
Taxi
Rental Car
Arrives at hotel
Checks in at hotel
Plans out rest of week
Concierge
Travel Website
Hotel Desk
Relaxation Time
Pool / Bar
Hotel Room
Beach
Traveler goes home
Restaurant
Online advertisements including
Trip Advisor
Advertisements inside in-flight
magazine
Video demonstrations if possible
Back-of-seat advertisement
Window advertisements
Advertisement in baggage claim
Posted brochure on billboard
and on hotel desk
E-Bike rack and charging station
Hotel Partnership
Online Advertisements
Posted brochure
Sponsor healthy snacks
TV slide advertisements
Demonstrations
Partnerships with restaurants

• Families
• Couples
• Family Income 80-120K
• Families with Teenage Kids
• Active Lifestyles
These are the typical demographics we are
targeting. We target these groups through the
use of different product offerings. We offer the
Freestyle and Guided tours to target the two
different groups.
There are plenty of these people traveling to
the Big island of Hawaii, with an estimated
1,435,245 people traveling there last year
alone. Of those people 70% went on
individually booked tours, and 18% of those
went on bike tours. (HTA, 2014)
Segmentation and Targeting
Branding
Adventure for All
Adventure, Family, Freedom
Logo
Our design features a small group (possibly a
family) zooming along on a bicycle. They do
not seem to be exerting themselves too much.
The logo also reflects our Light Green, Light
Blue and Yellow Color-scheme which is also
reflected in the business plan.
Tagline
Our tagline represents our 3 core values. We
use the word adventure, the word all suggests
that anyone, no matter of skill can use our
service and everyone has the same freedom to
adventure
Branding and Core Values
We are basing the business and marketing
scheme completely around these three values.
Adventure because it is an island tour, Family
because that is our audience and freedom
because our freestyle touring is a major
differentiating factor.
Positioning
12
• Touch Points
• Positioning in a Family Market
• Demonstrations
We need to have an aggressive positioning
approach because we only have a small
window to reach out to these tourist before
we lose their sale. To do this we plan on
making as many touch points and partnership
with other companies as possible. We plan on
placing advertising in airports, taxi services
and rental car companies so potential
customers can recognize our brand.
We will position ourselves in the market by
appealing to families, by targeting family
friendly hotels and services. We also plan on
giving demonstrations outside of these hotels
to show the benefits of our E-bikes.
Particularly we plan on targeting the decision
makers of the family, specifically the mothers
and fathers.

13
Price
• Advertising Experience
• High Quality E-Bikes
• Healthy and Organic Food Products
Our product offering is an exciting and safe
adventure for the whole family. Instead of
selling an individual product, we are selling
this experience. We also will advertise our
high quality E-Bikes and how easy they are to
use by doing demonstrations and trials.
To further advertise our products, we will
ensure that all of our bikes and helmets
incorporate our color scheme of green, yellow
and blue; as well as our company name, logo,
and phone number. All of our offerings must
be focused around Adventure, Family, and
Freedom.
Product
• Hotels and Restaurants
• Lower Emphasis on Social Media
• Trip advisor
No one will be traveling to Hawaii for Island
E-Bike Tours. This is why we are focusing on
getting the customers who are already
traveling to Hawaii. We are focusing the
majority of our advertising towards Hotels and
other tourist attractions on the big island. We
will have brochures and coupons in the
individual buildings, as well as our E-Bike
charging stations outside.
We do not expect there will be many returning
customers, so we will have a larger emphasis
on Trip Advisor than social media pages.
People often reference Trip Advisor to plan out
their vacation, and trust the logo when they
see it on buildings.
Place
• Brochures and Coupons
• Demonstrations
• Traveling Advertisements
As mentioned previously, our first and largest
form of advertising will be through brochures
and coupons at local hotels and businesses.
These will incorporate our color scheme,
pictures of the experience that we will be
offering, and detailed information about our
location.
We will also have traveling advertisements
with our logos and phone numbers
incorporated on our bikes and on our roadside
assist vehicle. Offering demonstrations of our
technology at tourist hot-spots will also
increase the exposure to our product and help
educate our consumer. This is our primary
strategy because of the new E-Bike
technology.
Promotion
• Focused-Differentiation Strategy
• Added Value of E-Bike
We are pricing our packages at a competitive
rate. We are comparing our prices most
similarly too that of Pedego Kaulua, who is a E-
Bike rental agency on O’ahu. We are focused
on Differentiating our services from others
with an emphasis on quality over price. We
will accomplish this by offering packages and
products that are not available elsewhere.
Guided tours Freestyle
Tours
2 Hour $50 Hourly $10
4 Hour $100 Daily $100
8 Hour $150 Weekly $450

14
• Provided by Garmin
• Updated regularly
• Complete Coverage over Hawaii
• Added Value, Customer Data, Security
GPS technology is essential in regards to our
free-style touring. Without a reliable GPS
system on each bike, our patrons would have
no reliable method for navigation. We could
not pre-load all of the devices with our “top
tourist attractions” and we could not track the
location of our bikes.
We plan on going with the device line
provided by Garmin that is customized
exclusively for bikes. The reason we are going
with Garmin is that they have the most
coverage over the big island of Hawaii. The
Specific unit we are using is the Edge Touring
Model. (Garmin, 2015)
The decision to use GPS technology in our
operation falls back onto three reasons. The
first factor is to add value to our experience.
With the Freestyle Tour option the rider can
experience a greater degree of freedom, while
still seeing the top attractions offered in
Hawaii. The second reason is that it will allow
us to collect beneficial data about where the
majority of the tours are going. This will allow
us to customize our tours, and offer more
attractive packages. Lastly, it will offer an extra
layer of security to protect against thieves. Our
bikes can costs several thousand dollars per
bike. (Bosch, 2014)
The estimated cost for each individual system
is roughly $249.99 and the software to track
and support the devices is called Basecamp
and it is free. This software allows the creation
of customized locations and routes, as well as
tracking for registered units. (Garmin, 2015)
Global Positioning Satellites
• Customer Relationship Management
• Supply Chain Management
• Accounting Software
• Point of Sale Software
We outfitting our physical location with Apple
computers and our road crews with Ipads with
internet access. All of our information
software will be able to store the information
in the cloud. The reason that we are picking
this method for data storage is the lower price
and the ease of access from multiple
locations.
Customer Relationship Management
The software we chose was ZOHO. The reason
that we selected ZOHO as our CRM software is
because of the easy to use interface, and the
low cost for start-up companies. The average
monthly cost will be free for the first 3 users
and $100 monthly after that. (ZOHO, 2014)
Supply Chain Management
For our SCM software we selected Fishbowl.
The reason we went with this company is due
to the lower cost and the compatibility with
QuickBooks. (Fishbowl, 2015)
Accounting Software
We are planning to use QuickBooks as our
accounting software. We are also planning to
use this software also for our Point of Sale
software. This will help track our transactions
and budget the company. (QuickBooks, 2014)
Information Software
$18.86
$7.99
$39.00
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
ZOHO QuickBooks Fishbowl
Monthly Price of I.S.
Monthly Price

Determining Customer Base
Annual number of people
Visiting Island
Annual number
of people
booking and
individual tour
Percentage of
Travelers
booking an
individual tour
Projected number of
people visiting big island
Percentage of
Travelers
booking an
individual tour
Number of
travelers taking a
tour
Percentage of People
who want Bike tours
Exclusively
Number of
people going
on tours (2015)
Number of
People going on
Bike Tours
1,435,245 1,004,671
70%
Year Number of Visitions Growth Taking Tours Number of People in Tours
2013 1,435,245 1.01 70% 1,004,672
2014 1,449,597 1.01 70% 1,014,718
2015 1,464,093 1.01 70% 1,024,865
2016 1,478,734 1.01 70% 1,035,114
2017 1,493,522 1.01 70% 1,045,465
2018 1,508,457 1.01 70% 1,055,920
2019 1,523,541 1.01 70% 1,066,479
2020 1,538,777 1.01 70% 1,077,144
18% 1,024,865
184,476
15
(Hawaii Tourism Authority, 2013)
(Hawaii Tourism Authority, 2013)

Determining Customer Base
Number of Bike
Competitors on the Big
Island of Hawaii
+15% of added
value because
of E-Bikes
Projected 2020
Customers
5 35%
67,860
Year Number of Visitions Growth Taking Tours Number of People in Tours
2013 1,435,245 1.01 70% 1,004,672
2014 1,449,597 1.01 70% 1,014,718
2015 1,464,093 1.01 70% 1,024,865
2016 1,478,734 1.01 70% 1,035,114
2017 1,493,522 1.01 70% 1,045,465
2018 1,508,457 1.01 70% 1,055,920
2019 1,523,541 1.01 70% 1,066,479
2020 1,538,777 1.01 70% 1,077,144
Guests Per Year in
2020
186Guests Per Day by
2020
16
Year Number of People in Tours
Bike Tour
Exclusive
People Going on
Bike Tours
Market
Share
Projected
Guests
2013 1,004,672 18% 180,841 0% 0
2014 1,014,718 18% 182,649 0% 0
2015 1,024,865 18% 184,476 15% 27,671
2016 1,035,114 18% 186,321 20% 37,264
2017 1,045,465 18% 188,184 25% 47,046
2018 1,055,920 18% 190,066 30% 57,020
2019 1,066,479 18% 191,966 32% 61,429
2020 1,077,144 18% 193,886 35% 67,860

17
Primary Research
Uzip Electric Ride Pedego Pedego
Location
Hilton Head
Island, SC Cape Cod, MA Coronoa Del Mar, CA Carlsbad, CA Avg.
Tourists Per Year 2,500,000 1,250,000 6,000,000 1,500,000 2,875,000
Average Daily E-Bike
Rentals 15 10 15 12 13
E-Bikes on Inventory 5 4 10 8 6.75
E-Bike Rentals to
Inventory Ratio 3.00 2.50 1.50 1.50 2.13
Average Daily Bike
Rentals 32 26 N/A N/A
Bikes on Inventory 15 11 N/A N/A
Bike Rentals to
Inventory Ratio 2.13 2.36 N/A N/A
Contact E-Bike Companies
Ask about
Inventory and
amount of daily
rentals
Create a ratio
between Daily
Rentals and
Inventory
Find Customer Base Daily
Divide Customer
Base by Rental to
Inventory Ratio
(RI)
Project that
number to
estimate Bike
Inventory
185 2.13
88
E-Bikes Required by
2020
Projected Guests
Annually Daily Guests
Rental Inventory
Ratio
Number of Bikes
Helmets and GPS
Units Required
2013 0 0 2.13 0
2014 0 0 2.13 0
2015 27,671 76 2.13 36
2016 37,264 102 2.13 48
2017 47,046 129 2.13 61
2018 57,020 156 2.13 73
2019 61,429 168 2.13 79
2020 67,860 186 2.13 87

18
Financial Projections
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
2015 2016 2017 2018 2019
Expected Income Growth
Yearly Revenue
Operating Expenses
Net Income
Our five year income projections look bright.
We are expecting explosive growth right
coming out of the gate, and then rounding off
a little after year five, due to the stabilization
in amounts of tours sold. Our largest expense
is our labor cost, due to us needing 12 staff
members in year one, and two additional staff
members each year following. We will be
offering benefits, that equate roughly to
$15,000-25,000 per employee.
After staffing the next highest cost comes from
Advertising. We budgeted 10% of our first
years sales. We also did something a little
different when it came to advertising. Because
we are planning such an aggressive strategy,
we are looking to invest more and more
money each year. So are increasing our
amount allotted to 10% for each year after as
well.
As for our income based essential ratios, our
profit margin should be between 17% and
21%. Due to the same stabilization as
mentioned above, the profit margin is going to
decrease and then stabilize.
Expected Income growth
Operating Expenses
Labor
Utlities
Rent
Software
Food Inventory
Insurance
Advertising
Depreceation
10%
12%
14%
16%
18%
20%
22%
24%
2015 2016 2017 2018 2019
Profit Margin

19
Relevant Cash flows
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
2015 2016 2017 2018 2019
Relevent Cashflows
Relevent
Cashflows
Relevant Cash flows
2015 $ 520,139.43
2016 $ 745,072.51
2017 $ 868,483.78
2018 $ 999,404.64
2019 $ 1,106,556.22
$ 6,869,840.02
Enterprise Value
$ 3,423,626.30
Net Present Value
We projected our next five years in terms of
cash flows. We have came to the conclusion
that Island E-Bike Tours is a Go. Not only that,
but through eternal discussion with our team,
we have ranked it a GO, GO, GO!
We have discovered that the most accurate
predictive ratio is the Net Present value. As
long as that is above 0, we would deem the
project worthy of a go. Our net present Value
was a little under $3.5M. Which means that
this project has a tremendous amount of
potential.
This fact, along with having an enterprise value
of almost $7M at the end of year five helps us
rank the project as extremely viable.
Expected Income growth
GO! GO! GO!
Group 7 Ranking
% 147
Internal Rate of Return
< 1 year
Payback Period

20
Works Cited
Advisor, T. (2015). Top things to do in Hawaii Volcanoes National Park. Retrieved 2 24, 2015, from
Trip Advisor : http://www.tripadvisor.com/Attractions-g143034-Activities-
Hawaii_Volcanoes_National_Park_Island_of_Hawaii_Hawaii.html
Gov, H. (2015). 101 Things to do . Retrieved 3 10, 2015, from Hawaii.com:
http://www.101thingstodo.com/big-island/
Gov, H. (2013). Hawaii Tourism Authority. Hawaii Government , Department of Tourism , Honolulu .
NPS. (2015, 3 23). Bike The Volcano. Retrieved 3 10, 2015, from National Park Service :
http://www.nps.gov/havo/planyourvisit/bike.htm
Tanaka, C. (2013, 8 29). Electric Bicycles: The Next Big Thing? Retrieved from Hawaii New Now:
http://www.hawaiinewsnow.com/story/23284232/electric-bicycles-the-next-big-thing
Viator. (2015). Viator. Retrieved from Kilauea Volcano Bike Tour: http://www.viator.com/tours/Big-
Island-of-Hawaii/Kilauea-Volcano-Bike-Tour/d669-5005BIKE
Zax, D. (2011, 9 27). The Rise of E-bikes. Retrieved 3 10, 2015, from Technology Review:
http://www.technologyreview.com/view/425559/the-rise-of-the-e-bike/
Bosch ebike Systems. (2014, January 1). Retrieved March 23, 2015, from http://www.bosch-
ebike.de/en/home/home.html
NBDA Industry Overview. (n.d.). Retrieved March 23, 2015, from http://nbda.com/articles/industry-
overview-2013-pg34.html
Dealers. (2013, January 1). Retrieved March 23, 2015, from http://www.ebikes.ca/dealers.html
E-bikes - U.S. sales forecast 2016 | Statistic. (2014, March 8). Retrieved March 23, 2015, from
http://www.statista.com/statistics/326124/us-sales-of-electric-bicycles/
E-bikes - U.S. sales 2014 | Statistic. (2015, January 8). Retrieved March 23, 2015, from
http://www.statista.com/statistics/328871/sales-of-electric-bicycles-in-the…
Shop. (2013, January 1). Retrieved March 23, 2015, from http://www.pedegokailua.com/shop/
What are the running costs of owning an electric bike? - E-bikeshop News. (2013, October 23).
Retrieved March 23, 2015, from https://www.e-bikeshop.co.uk/blog/post/electric-bike-running-
costs/
SD FLY RIDES – Service. (2013, January 1). Retrieved March 23, 2015, from
http://sandiegoflyrides.com/service/
Cycling Standards. (n.d.). Retrieved March 23, 2015, from
http://academic.mintel.com.proxy.library.ohiou.edu/display/699737/?highligh…

Appendix A: Contact Email
Dear (Company Name),
Hello I am a junior business student at Ohio University. We were assigned a group
project, to develop a business feasibility project and we have decided to look into a e
bike tours in Hawaii. In this project we have to conduct an Interview with an existing
company and after much research we found that (Company name) is one of the top
electric bike tours in (Location). We had a couple of questions that we would like to
ask you, that would give us a better understanding of the industry. I am willing to
agree to a nondisclosure agreement necessary. We would love to set up an over the
phone interview with you at your convenience. Below are a few questions we were
interested in.
How many customers do you get daily?
What are you peak months of business?
Does your company appeal to more of a local audience or tourism based?
Does your organization partner with any of the local companies?
What are the average sales per customers?
Kind Regards,
Jack Summers
21

22
Appendix B: Larger outlook of bike routes in Hawaii

23
Appendix C: Closer look at Mauna Loa Bike Routes

24
Appendix D: Business Model Canvas
1. Key Partner
-Bikes (MBDA)
-Motors (Bosch)
-GPS (Garmin)
-Organic Food Supplier
2. Key Activities
-E-Bike Tours
-Ebikes rentals
-Guided tours
3. Key Resources
-Bike
-Motor
-Drinks
-GPS/software
-Bike Accessories
4.Value Proposition
-Adventure
-New Experiences
-New Views
-Family Bonding
5. Customer Relationship
-GPS-Gudied Tours
-Ease of use
-No Loyalty Programs
-Online Presence
6. Customer Segments
-Familes
-Couples
-Tourist
-Retirees
7. Channels
-Hotels and Resorts
-Online/social media/ Instagram
-Customer surveys
- Rate your Ride
-Reviews/Trips advisors
8. Cost Structure
-Bikes/Motors
-GPS
-Rent
-Maintenance
-Inventory
-Value Driven
9.Revenue Streams
-Self Guided tours
-Guided Tours
-Food/Drink

28
Appendix H: Income Sheet
2015 2016 2017 2018 2019
Revenue
Number of Guests Daily 76 102 129 156 168
Average Package Price Daily $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00
Daily Sales $ 7,600.00 $ 10,200.00 $ 12,900.00 $ 15,600.00 $ 16,800.00
Yearly Revenue $ 2,774,000.00 $ 3,723,000.00 $ 4,708,500.00 $ 5,694,000.00 $ 6,132,000.00
Operating Expenses
Labor $ 600,000.00 $ 700,000.00 $ 800,000.00 $ 900,000.00 $ 1,000,000.00
Utlities $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00
Rent $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00
Software $ 790.20 $ 790.20 $ 790.20 $ 790.20 $ 790.20
Food Inventory $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00
Insurance $ 2,400.00 $ 2,400.00 $ 2,400.00 $ 2,400.00 $ 2,400.00
Advertising $ 277,400.00 $ 372,300.00 $ 470,850.00 $ 569,400.00 $ 613,200.00
Depreceation $ 20,252.00 $ 39,287.20 $ 37,553.12 $ 36,994.55 $ 38,534.90
Operting Expenses $ 924,842.20 $ 1,138,777.40 $ 1,335,593.32 $ 1,533,584.75 $ 1,678,925.10
Operating Income
Intrest Expense $ 9,600.00 $ 9,600.00 $ 9,600.00 $ 9,600.00 $ 9,600.00
Income before taxes $ 915,242.20 $ 1,129,177.40 $ 1,325,993.32 $ 1,523,984.75 $ 1,669,325.10
Tax Rate 0.65 0.65 0.65 0.65 0.65
Net Income $ 594,907.43 $ 733,965.31 $ 861,895.66 $ 990,590.09 $ 1,085,061.32

29
Appendix I: Cash Flows
Start Up 2015 2016 2017 2018 2019
EBITDA $ 945,094.20 $ 1,178,064.60 $ 1,373,146.44 $ 1,570,579.30 $ 1,717,460.00
Depreciation and amortization $ 20,252.00 $ 39,287.20 $ 37,553.12 $ 36,994.55 $ 38,534.90
EBIT $ 924,842.20 $ 1,138,777.40 $ 1,335,593.32 $ 1,533,584.75 $ 1,678,925.10
(1 - tax rate) 65% 65% 65% 65% 65%
Operating profit after tax $ 601,147.43
$
740,205.31
$
868,135.66
$
996,830.09 $ 1,091,301.32
Depreciation and amortization $ 20,252.00 $ 39,287.20 $ 37,553.12 $ 36,994.55 $ 38,534.90
Operating cash flow $ 621,399.43
$
779,492.51
$
905,688.78 $ 1,033,824.64 $ 1,129,836.22
Investment
$
101,260.00 $ 34,420.00 $ 37,205.00 $ 34,420.00 $ 23,280.00 $ 23,208.00
Free cash flow $ 520,139.43
$
745,072.51
$
868,483.78
$
999,404.64 $ 1,106,556.22
Enterprise value (end of year 5) $ 6,869,840.02
Relevant cash flow $ 520,139.43
$
745,072.51
$
868,483.78
$
999,404.64 $ 1,106,556.22

30
Appendix J: Balance Sheet
Start Up $ 2,015.00 $ 2,016.00 $ 2,017.00 $ 2,018.00 $ 2,019.00
Assets
Cash $ 400,000.00 $ 393,240.00 $ 453,320.00 $ 510,615.00 $ 570,695.00 $ 641,915.00
Inventory $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00
Equipment $ 101,260.00 $ 135,680.00 $ 172,885.00 $ 207,305.00 $ 230,585.00
Total Assets $ 400,000.00 $ 500,500.00 $ 595,000.00 $ 689,500.00 $ 784,000.00 $ 878,500.00
Liabilites
Current Liabilites
Accounts Payable $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00
Current Portion of long term debt $ 17,142.86 $ 17,142.86 $ 17,142.86 $ 17,142.86 $ 17,142.86
Long Term Debt
Remainder of Loan $ 120,000.00 $ 102,857.14 $ 85,714.28 $ 68,571.42 $ 51,428.56 $ 34,285.70
Total Liabilites $ 120,000.00 $ 120,500.00 $ 103,357.14 $ 86,214.28 $ 69,071.42 $ 51,928.56
Retained Earnings
Paid-in-Equity $ 280,000.00
Retained Earnings $ 594,907.43 $ 733,965.31 $ 861,895.66 $ 990,590.09 $ 1,085,061.32
Owners Distrbution $ (214,907.43) $ (242,322.45) $ (158,609.94) $ (175,661.51) $ (158,489.88)
Total Equity $ 280,000.00 $ 380,000.00 $ 491,642.86 $ 603,285.72 $ 714,928.58 $ 826,571.44
Total Liabilites and Equity $ 400,000.00 $ 500,500.00 $ 595,000.00 $ 689,500.00 $ 784,000.00 $ 878,500.00

31
Appendix K: Depreciation Calculation
Year 1 Year 2 Year 3 Year 4 Year 5
Excessive Capital Needed 36.00 12.00 13.00 12.00 8.00
Bikes $ 90,000.00 $ 30,000.00 $ 32,500.00 $ 30,000.00 $ 20,000.00
Helmets $ 1,260.00 $ 420.00 $ 455.00 $ 420.00 $ 280.00
GPS $ 9,000.00 $ 3,000.00 $ 3,250.00 $ 3,000.00 $ 2,000.00
Other $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Capital Investment Required $ 101,260.00 $ 34,420.00 $ 37,205.00 $ 34,420.00 $ 23,280.00
Running Capital $ 101,260.00 $ 135,680.00 $ 172,885.00 $ 207,305.00 $ 230,585.00
Depreciation Percentages
Year 1 Total 20% 32% 19% 12% 12%
Year 2 Total 20% 31% 19% 12%
Year 3 Total 20% 32% 19%
Year 4 Total 20% 32%
Year 5 Total 20%
In Cash
Year 1 Total $ 20,252.00 $ 32,403.20 $ 19,441.92 $ 11,665.15 $ 11,665.15
Year 2 Total $ 6,884.00 $ 10,670.20 $ 6,539.80 $ 4,130.40
Year 3 Total $ 7,441.00 $ 11,905.60 $ 7,068.95
Year 4 Total $ 6,884.00 $ 11,014.40
Year 5 Total $ 4,656.00
Total Depreciation
$ 20,252.00 $ 39,287.20 $ 37,553.12 $ 36,994.55 $ 38,534.90

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