• 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.

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.

Introduction

Human Resources

• Mechanic in Atlanta: a reliable person

• Two key people in Chile:

Management Plan

Cesar Gutierrez

speaks spanish fluently;experience in selling motocycles

He will develop the market and learn the culture and business environment

Alberto Gazzo

knows the local motorcycles industry very well

He will be a representative agent to help us build and manage local marketing relationships in Chile

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.

Management 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 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.

Marketing Plan

Pricing

• Cost of our Products $2000-$5000

• Selling price $4000-13,000

Investment asking price

$ 150 - 200,000

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

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 Plan

Comparable 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

Chile example:http://moto.mercadolibre.cl/MLC-37818909-yamaha-yzf-r6-_JM

US example:

http://nashville.craigslist.org/mcy/2654482167.html

http://atlanta.craigslist.org/atl/mcy/2691028122.html

Summary

• Chile offers the perfect environment for a small exporter to thrive:

– open market economy – well regulated business environment – growing middle class – high demand for products

Summary

Conclusion

• By taking advantage of all that Chile has to offer, we believe that we will be successful.

Thank you!