Product Proposal For Increasing Sales

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• Steady growth from 1992-2001 o Over 25,000 bicycles sold o Over 6,000 bikes sold in 2001 o 5.2M sales in 2001 o Designs win national awards and large following • BikeE products o Weight of single rider products 28-31 lbs o Basic product, CT (no suspension) ƒ Manufactured by Giant in Taiwan ƒ List price 750 ƒ Landed cost 280 ƒ Giant estimated landed cost of 150 if made in China o Most popular, AT with rear suspension ƒ Manufactured by Giant in Taiwan ƒ List price 1000 ƒ Landed cost 320 ƒ Giant estimated landed cost if made in China, 200 o Mountain Bike, FX ƒ Developed the first off-road seated bike ƒ Made in USA ƒ Fully suspended ƒ List price 1500 o FantaceE concept bike ƒ Designed in 1994 ƒ Monocoque construction ƒ Only one built o Other models produced and sold ƒ Tandem ƒ Road bike • BikeE transformed recumbent market o Introduced “seated cycling”, riding in a comfortable position like fitness recumbent bicycles o Introduced compact design, total length similar to traditional bicycle o Large popular following ƒ Many websites devoted to BikeE’s (see for one of the best) ƒ Many BikeE customers customized their bikes similar to what Harley Davidson owners do ƒ Many customers use BikeE for commuting ƒ Others rode BikeEs across the USA Market for the Product: • Recumbent Market o The market for recumbents prior to 1992 was about 2000/year worldwide..

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