Bobsla Electric Snowmobile: Market Insights & Financial Viability
Bobsla, a new electric snowmobile with unique features, faces financial challenges due to COVID lockdowns. Recommendations include financing with Canadian investors, pursuing affinity financing, targeting the Canadian market, and expanding into the B2B segment to secure short-term viability and increase market share.
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Presentation Transcript
BOBSLA Emerald Deku, Oluwabanke Shodimu, Rick Desloge
Industry Background Snowmobiling has an estimated market size of $1.4-1.8B (2020-2027) 85% of market: US, Canada, Russia 2020: 123,862 units sold; (51,036 in US, 43,535 in Canada) Canada and Russia expected to experience fastest growth Traditional snowmobiles are expensive, sophisticated, heavy, dangerous, heavily polluting Noisy, polluting, & gas guzzling Arctic Cat, Polaris, Yamaha, BRP Electric snowmobiles represent 0.12% of snowmobile market Significant players: i-Cat Pro, Mattro, Aurora e-sled Unattractive price points: $30k, $38k, $35k Polaris (traditional ICE) exploring electrification via partnership with Zero Motorcycles Taiga Motors: start-up w/ high valuation ($430M); base price $15k, still in pre-order Learning from experience of early movers, Bobsla has created a new electric snowmobile/e-sled
Bobsla Background Different type of vehicle Simpler design Fewer sophisticated and expensive parts like suspensions, gearboxes, transmission and steering bars Unique value proposition: Compact and low weight, unique driving pleasure, high levels of safety, improved energy efficiency Extreme agility and ability to drift Sturdy roll-cage and center of gravity an inch above the snow Does not sink easily into fresh snow More efficient than conventional design e-sleds (3.5 miles/kWh vs. 2.5 miles, or +40%) COVID lockdowns forced Bobsla into financial survival mode Despite organizing events and engaging sponsors during pandemic, company struggling How can Bobslasecure short-term financial viability which allows for pursuit of increased market share among both consumers and businesses?
Recommendations Initially, prioritize securing the financial viability of Bobsla Cash flows must be positive to pursue other strategic initiatives These cash flows will be from financing activities Recommendation: Finance Bobsla with Canadian investors Recommendation: Pursue affinity financing through Kickstarter After securing financial viability, pursue market share Recommendation: Aggressively pursue Canadian market Recommendation: Target the B2B segment Recommendation: Expand into the downstream market of ski businesses
Why Finance with Canadian Investors? Geographic proximity of target market Canada is a leader in energy transition and sustainability Montreal-based Taiga Motors recently secured $148M equity investment from Canaccord Genuity Group CGG is largest independent investment dealer in Canada Suggests Canadian investments are viable
Why Finance with Kickstarter No equity dilution Potential word of mouth may increase brand recognition Increased brand awareness makes enacting subsequent strategies easier Provides instant cash flow for Bobsla
Market Entry - Canadian Market Canada is one the biggest snowmobile market. In 2020, Canada had 35% of the snowmobile sales and it is expected to experience the fastest growth in the nearest future. Although the US had more sales of 41%, however, the population in Canada is about 12% that of the US. Based on the population, the demand for snowmobile is higher in Canada compared to the US. Investment opportunity: Canandian investors have more depth of funding compared to Austria and these investors are open to emerging concepts. Competition: Canada has one top snowmobile producer, Bombardier Recreational Product, the producer of the Ski-Doo Snowmobile Bobsla offers more value proposition; high level of safety, low weight, doesn't sink easily
Target Segment (B2B) Bobsla should target businesses since consumers are influenced by businesses' product offerings Ski Resorts in Canada Snowballing clubs There are 700 snowmobile clubs in Canada Non Profit Associations Racing Corporations
Marketing Strategy Partner with Complementary ski apparel brands in Canada. Arc'teryx Patagonia Helly Hanson Improve e-commerce presence Integrate social media channels into website to build an online community and boost customer loyalty Enter the downstream market in the long term Pursue rental services for race course events
Risks of Competition BRP in Quebec: The company also sells complementary products like accessories and sports gears Yamaha Motor Corporation: Yamaha differentiates its snowmobile product by manufacturing the following product lines. Trail Crossover Mountain Up Touring & Utility Youth
