AIBL Nightly Cruiser
“Having A Socially Responsible
Good Time”
Written by: Tiffany Piplika, Jacquelyn Polla, Brian Redfern, Victor Sargent, Kim Iron,
Martha Failing, Shelly Other Medicine
Presented By: AIBL of Montana State University-Billings
Kimberly Iron, Martha Failing, Shelly Other Medicine
Mission Statement
The AIBL Nightly Cruiser is a way to
promote the fight against drunk driving and
encourage the use of designated drivers.
The Nightly Cruiser is currently located in
Billings, Montana with plans to expand to
other major cities across Indian Country.
AIBL Nightly Cruiser
• Indian owned business in Billings,
Montana
• Providing entertaining, safe “bar hopping”
experience
• To promote the fight against drunk driving
Service
• Providing transportation from strategic
locations to local bars
• Designated driver
• The bus service will include four buses
Physical Facilities
• Home base office
• Storage lot leased from neighboring
suburb
Tribal and Local Benefits
•
Major entertainment hub of Montana
•
Home to a rising number of Indians
•
Provides safe transportation without the
hassle of finding a designated driver
Relationship to Tribal Economy
• Native entrepreneurship
• Encouragement to be competitive outside
of tribal boundaries
Strategy
•
Confirm sponsorship and participation with
bars
•
Confirm community support
•
Obtain loan
•
Establish marketing plan and launch calendar
•
Purchase Buses
Strategy
• Hire Employees
• Start with all operations plan and training
• Begin Marketing Launch Calendar
• Start Operations
• Adjust based on market response
Market Description
• Four Target Markets
– Billings’ residents without cars over age of 21
years.
– College students over 21 years of age
– Overnight visitors, hotels
– Entertainment seekers, designated driver
General Market Trends
• National ads creating awareness for
dangers of drunk driving
• High gas prices = rising taxi fares
• Increase of DUI’s in city of Billings by 35%
from 1999 to 2004
Customer Profile
• 21 years and older
• Male and Female
• Lower-Mid Income $0-30,000
• All races/social classes
Local Bars
•
•
•
•
•
•
Wild West
The Carlin
Brew Pub
Hooligans
Walkers Grill
Jakes
•
•
•
•
•
•
Traxx
Montana Chads
Crystal Lounge
Tiny’s Tavern
The Rex
Railyard
 Total bar capacity: 2,098 People
 42 passes to breakeven = 2% of bar capacity
Competition and Risk
• Competition
– Taxi-cabs
– Rental services
– Personal vehicles
• Risks
– Break-even achieved in longer period of time
Marketing Mix
– Place: Low-Cost Transportation Provider
• Type of channel
• Degree of market Exposure Desired
• Types of middlemen
• Facilities needed
Marketing Mix
• Promotion
– Primary Demand of our product to all four
target audiences
– Introduction of product life cycle
• Price
– $5.00/pass/night
– Season pass discount
Organization
• General Partnership
• Develop into Corporation
– Limit liability
– Open doors for investment for Indian people
Management Team
• Kim Iron – Financial Advisor
• Shelly Other Medicine – Operations Manager
• Martha Failing – Public Relations Specialist
Training Plans
• Bus driver’s to obtain current CDL
• Management
– Required to obtain qualified degrees
– Able to fill in for all aspects of organization
Financial Analysis
• Profit/Loss
– Earn first profit in 2009 of $5,397.
• Retained earnings
– First positive retained earning in 2009 of $25,928.
• Free cash flows
– Positive free cash flows each year.
• Capital structure 80% debt, 20% equity
• NPV using WACC $230,575
• NPV using RRR $59,455
Financial Analysis
• Contingency plan:
1.Implement a rock climbing wall along the
outer wall of the facility.
2.Look into the purchase of alternative floor
coverings.
3.Expansion of the facility.
4.Use arena boards as a marketing tool.
• Exit strategy
Thank You For Your Time