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I. EXECUTIVE SUMMARY

The Situation: All about Area Cycles
My project is about rebranding the Castro Valley based bicycle shop, Area Cycles. It
proposes new ideas and thoughts on how to rebrand, to ultimately grow the business customers
and the business itself. It takes into account many different things, such as the target market of
Area Cycles, and ranging to the budget of the entire rebranding process.

Research Methods and Findings
Primary research was the main technique in gathering information for Area Cycles. I
scheduled an appointment to meet with the owner and exchange our ideas for the company.
Some secondary research was included though, such as a survey. Aside from the research
methods, the findings of the community was important to pin point exactly who to target. Area
Cycles is located in a very unique environment. Its placed geographically where it can target its
market to its city, Castro Valley, but three neighboring cities as well, San Leandro, San Lorenzo,
and Hayward. That is a total of four separate cities, with four separate populations, increasing the
potential for the business exponentially. If Castro Valley is the only community taken into
consideration, the target population is 25.3% (males age 10-39) with a total population of 41,680
people. If you were to include Hayward, San Lorenzo and San Leandro, the total population
jumps to 304,199 people. The target market would then be 36.7% of 304,199 people. Thats an
11.4% increase of target population.

Objectives For Rebranding
Lets start out by focusing on 4 main objectives for this rebrand which includes: the
changing of the logo, introducing a new product line, improved promotion, and redecorating of
the store. The first, changing and remaking the logo, makes it more appealing and more
recognizable. The goal is to produce a logo to where if you look at it, you will automatically
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think, Area Cycles. The second objective is to introduce a new product line of apparel. Area
Cycles carries bikes, tools, and things related to cycling. The only apparel they carry is cycling
gear meant for serious riders. Due to this, a new line of street wear which will not only bring in
money from sales, but is also a great free promotional strategy. Customers can act as walking
billboards. This ties in to the third proposal of running a 30 second commercial to widen our
market reach to people who arent aware of Area Cycles and their mission to provide a great
riding experience in the Bay Area. In the planned commercial, we intend on marketing the
business by informing viewers about a biking event hosted at Area Cycles. The event will
include bike races, trick competitions and much more! The fourth and final objective is
rearranging and redecorating the Area Cycles store front. Renovating the store will result in more
client flow. It will draw people to come in and examine products because its something different,
new, clean, and a fresh experience. Even if people dont purchase anything, at least they will get
exposed to the new store and will most likely share their experiences with others. With all of
these proposed objectives completed, I hope to accomplish an improved business that has
increased profits and a better overall image.

II. INTRODUCTION
A. Description of Business
Kenji started Area Cycles, a well-known bike shop in Castro Valley. They are commonly
known for their fixed gear bicycles. Aside from their fixies, they also sell track bikes, BMX
bikes, scooters, and many other bicycle parts. Other than selling bicycles itself, they also have
varieties of bike parts, such as pedals, crank sets, lights, speedometers, and other accessories to
make riding a bicycle easier and fun too. Also, Area Cycles sells tools for bikes, such as portable
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pumps, levers to help remove the tire from the rim when the tube is needed to be changed, they
provide special tools that you cant find anywhere else besides bike stores. They also provide a
service for customers such as repairing damaged bikes and scooters. Area Cycles also make
custom bicycles to the clients eclectic specifications. They also welcome customers to come in
and fix their bikes with Area Cycles tools whenever they wish to. Area Cycles even offers input
on questions their customer have about their bikes without an appointment. This is incredibly
convenient, due to the average (beginning) cycler not having time in their schedule. This of
course can happen on a spur-of-the moment, after all, that is a huge reason why people
thoroughly enjoy biking.

B. Description of the Community (economic, geographic, demographic, and socioeconomic)
The community that Area Cycles serves is mainly Castro Valley, but includes other
neighboring cities, such as San Leandro and Hayward. Castro Valley is filled with hills and is
ideal for bicycle riders looking for a challenging ride. It is a perfect place to operate a bicycle
shop especially because in this area, there is a rise in youth participation and interest in bicycle
sports. In addition, we figured out that there are 4 public high schools in Castro Valley. These
include: Castro Valley High School, Redwood Alternative High School, Redwood Continuation
High School, and Roy A. Johnson High School. This tells us that there are many youths in the
city, which is perfect for Area Cycles target market since biking, specifically fixie bike riding, is
becoming more and more popular throughout the nation. With a population of 41,680 people,
Castro Valley is a great community for bikers to ride around. However a target market of only
youths would be to limited. Especially taking into consideration the entire population of Castro
Valley. Castro Valley contains a male and female percentage at the age of ten to thirty-nine year
olds, Castro Valleys overall percent population of 50.6% of them are at that age. With only
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about 5% of people who are below poverty line, Area Cycles is affordable for most people in
Castro Valley.
Area Cycles location is also perfect, because they are located right next to a bike, scooter, or
skateboard park, owned by the city. Anyone could just hang around the park after they purchased
a new bicycle or scooter from Area Cycles or after they fixed their bike or scooter.

C. Description of the Business Mission, Target Market and Existing Brand Efforts
Our motto says it all. Area Cycles is the shop that true riders come to. Our philosophy
is based on not only having excellent customer service, but also on first hand experience and
knowledge of the products we provide. We are unlike other bike shops who are just following
trends and know very little about the stuff they have. All of our staff are experienced riders and
will be able to help you find the best bike for your needs. Area Cycles target market are true
riders who are looking for excellent customer service and a knowledgeable, experienced rider.
They run their business to spread the word out, which is to ride bikes. They want the world to
become a more active society, which is why he wants his custom bikes to model a style for
people to ride, while being active.
III. RESEARCHED METHODS SEARCHED IN THE STUDY
A. Description and Rationale of Research Methodologies Selected to Conduct the Research
Study
The method of research was mostly comprised of primary and secondary research. For
primary research, I visited Area Cycles and personally spoke with Kenji and asked a variety of
questions regarding about rebranding his company. Questions ranging from: When did you start
your business? What did you expect from starting your business? As for the secondary data, I
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visited their website and conducted our research by getting information that was given on the
site. I examined the sites information, and also the quality of their website. I analyzed whether
or not it catches the customers attention and if its informative.

B. Process used to Conduct the Selected Research Methods
I researched the demographic, geographic, and the economic information of Castro
Valley. Also, I gained more information from Area Cycles website. Aside from that, primary
research was used in our project by personally speaking with the owner of Area Cycles, Kenji. I
personally asked essential questions to the owner of the store to help us get deeper understanding
of Area Cycles in order for us to rebrand their business. Another form of research conducted was
my survey. Random students ranging from freshmen to seniors at San Leandro High School were
questioned. Based on the results of the survey, many people from the high school did not hear
about Area Cycles before. The only people who really knew what the business was, were fixed
gear riders attending San Leandro High School who visit Area Cycles regularly for parts and
materials for their own bicycles.

IV. FINDINGS AND CONCLUSIONS OF THE STUDY
A. Findings of the Research Study
During the research, I discovered this is not an ordinary bicycle shop. Area Cycles was
started not to only make money, but it was to give back to the community. The business was
started to give youths the opportunity to have a place, which had a positive environment and
united the young from any background under the love of biking. Since Kenji grew up in a biking
environment and was taught many things about biking as a young man, he decided to give back
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to the youth in his hometown. So as a result, he started Area Cycles as a way to live everyday
doing what he loves to do while making money and to give back. Since opening four years ago,
he has helped youths by spreading his infinite knowledge of biking, building and repairing their
own bikes.

B. Conclusions Based on Findings
Based on a series of in depth questions, I was able to gather up a lot of information. With
Kenji, he has been biking his whole life. Since he was a teenager he fell in love and started
working for various bike shops. In 1997, he started working in his first bike shop and learned a
lot. So with 12 years of experience under his belt, he decided to start his own shop, in his
hometown. Kenji wanted to start his own shop, because he wanted to have something that was
just his own. He is an independent worker, or a sole proprietorship business. From this
information, I concluded that since hes been doing this business by himself for years now, he
has been quite successful as a small business. The fact that he only has one employee serving for
him, Kenji has ran this business enough for him to be content. Although Kenji is content with his
business so far, there is always room for improvement. The most significant thing that he wants
to improve on is marketing his shop. Its not just so people can go to his shop, but he wants to
market the whole biking idea to the world. As it showed on our survey, most people have never
heard of Area Cycles before. Therefore, marketing is our main goal in order to rebrand Area
Cycles. Kenji is not just about himself and about selling his products, he is about spreading his
hobby for all to enjoy. He wants to make everyone active by riding bikes.

V. PROPOSED REBRANDING PLAN
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A. Objectives and Rationale of the Proposed Rebranding Plan
Logo
Rationale: One of the proposals is to make an
improved logo for Area Cycles, adding onto the
original one. Currently it is a Area Cycles in a
fancy cursive script. This way, Area Cycles will
have a new look, which will make their company
more appealing to their customers. Not only will it
give the company a new look, but it will show a
refreshing image for them, or a new start for their
company. This will result in better sales, because
how they mark their company is how they will mark
their products. By doing so, their products will feel
brand new, aside from the fact that its fresh out of the box. We dont only plan on changing the
logo once, permanently, but constantly over time.
Redecorating
Rationale: Another proposal to rebrand Area Cycles is to redecorate their shop. Redecorating
their shop will result in a better environment for their customers and employees for a bigger
space to move around the shop. Redecorating their shop will give their customers a feeling of a
brand new store. A brand new store usually appeal customers,
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because of the fact that its new. Unless youre a grocery store, customers will not go to a bike
shop every week or two. However, no matter what type of business you are running, just the fact
that its brand new, more people will be interested in visiting a new-looking shop rather than
seeing the same, old shop every time they pass by.
Apparel
Rationale: After the redecoration process and after the new logo is developed, we plan to add
apparel to their brand. Adding clothing into the business will guarantee an increase in popularity
for their shop, and of course the brand. By adding clothing it will result in more sales for the
company, because wearing an Area Cycles t-shirt is promoting the company. Area Cycles will be
involved in apparels, such as designer shirts, hoodies, or even pants. Of course their clothing
may be bike relevant, in which they will be worn during biking. However, apparel may be way
more successful than just a small part of the company. My proposal may even become a trend for
its foreign biker style. Even those who dont bike at all may be interested in the brand.
Promotion
Rationale: Finally, my most important plan to rebrand Area Cycles is different promotion
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strategies, Including commercials, billboards, stickers, and even hosting events in our
community. With this strategy, I will be expanding the market for Area Cycles and increasing
the visibility in the community. This will increase sales and add more customers to the shop.

B. Proposed Activities and Timelines
Our proposal of incorporating apparel into Area Cycles in order to change their company
for the better will begin as soon as possible. However, we plan to redevelop their logo before
anything else. The plan to change the logo stems from a new logo representing a new company.
The outside world needs to know that the brand is new and different, and the only way to know
that something is new is by seeing something they have never seen before. The logo has to be
colorful to catch the eyes of their customers. However, its a must to make it simple, because
simplicity is always the best way to go. The logo will have to begin before anything else so that
it is ready when the events start. Also, the logo is important to be finished so that it can be put
onto the upcoming apparel, and for everyone to see in the event that Area Cycles will host.
Then the redecoration of the shop comes in. Redecorating will give space for the section
for our proposed apparel. Despite the lack of space in the shop, I will (appoint someone to)
redecorate their shop with a goal of making it look and feel spacious. Giving the shop space will
give their customers freedom to look around, and also provide enough space for a small apparel
section.
After the shop is rearranged and made spacious, I will start talking to companies who
could make apparels for the shop. I will then start ordering the t-shirts, hoodies, and crewnecks
with the new logo printed onto them.
The process of rebranding Area Cycles starts with the logo development on Friday,
February 7th. While the logo is being developed, rearrangement of the store will start almost
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immediately. The projected time for this is on Saturday, February 8th to Monday, February 10th.
After taking a short break to make sure everything is in order, apparel design will begin
Saturday, February 15th. When everything has been completed, and the end is near, the final
phase of my plan will be in full effect, the Promotions! Our promotion plan will commence on
the day of Monday, March 10th. During the promotion plan, I will first start with creating the 30-
second commercial on the 10th of March. The commercial will include appealing information
about Area Cycles, and the upcoming event that Area Cycles will be hosting. The day after, on
Tuesday, March 11th, Kenji will order the stickers to give away during the event and also, the
stickers will be placed on every bike purchased in the store. The stickers will have the new logo
on them and Area Cycles contact information. After the stickers are ordered, the planning for
the event will begin. This will take almost a month of planning, so I will begin on Thursday,
March 13th. After planning, more than a month of the commercial being aired, and after a month
of getting all the t-shirts ready along with the stickers and decals, this Area Cycles event will
take place on Saturday, May 10th. By this time, everything will be ready to go! This event will
consist of contests for fixie bike tricking, a race for road bikes and another race for track fixie
bikes, an auction for customized bikes, and of course the giveaways of t-shirts and stickers. After
a terrific day of the Area Cycles event, Area Cycles will inform the people who attended the
event about their store. After a weeks time has passed, the billboard will be put up. This process
will begin on Saturday, May 17th.

Proposed Activities Date
Logo Development Friday, February 7, 2014
Rearrangement of Shop Saturday, February 8 to Monday, February 10, 2014
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Apparel Saturday, February 15, 2014
Commercial (Promotion Plan) Monday, March 10, 2014
Stickers (Promotion Plan) Tuesday, March 11, 2014
Planning for Event Thursday, March 13, 2014 to Friday, May 9, 2014
Community Event (Promotion Plan) Saturday, May 10, 2014
Billboard (Promotion Plan) Saturday, May 17, 2014




VI. PROPOSED BUDGET
A. Costs Associated with Proposed Rebranding Strategies
First, I will start off with changing or renewing the logo. In order to accomplish this, I
will need to hire a graphic designer. The cost for a logo development is about $750-$1,500 for
small businesses, and it is also depending on what the design will be. Based on the new look I
am trying to achieve, I project the cost to be about $1,000-$1,500. Having the logo already made
will give entrance to the apparel and stickers that will be part of the promotional plan.
Secondly, while the logo is being developed, I will save time by renewing the
environment inside the physical shop the next day. In order to do that, I will be rearranging the
bikes and accessories to make more space for customers to move. Eliminating the racks on the
left side of the store, it will add space and give the customers the ability to inspect the bikes
themselves without having to ask for help. The total cost for that will be zero dollars because I
and Kenji arent purchasing anything. However, we will hire 2 workers to help move out the
unnecessary furnitures, such as the bike racks. This will add up to only $102 for the whole three
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days of rearrangements or redecorating process. The hired workers will start rearrangements on
Saturday, February 8th at 7:00PM to 9:00PM. The same process will happen the next day.
However, Area Cycles is not open for business on Mondays. Therefore, the redecorating workers
will work at 10:00AM to 12:00AM. They will both work for 2 hours for 3 days, and will be paid
$8.50 per hour. Aside from just eliminating the bike racks, we will rearrange the other furnitures
around the store, which will increase space in the store for Kenjis customers to move around.
Third, we will be adding apparel to Area Cycles. The cost for a standard designer t-shirt in bulk
will be sold to Area Cycles for $10 per shirt. In a bulk, there are 50 shirts. From these shirts,
Area Cycles will make a 50% profit if they decide to sell each t-shirt for $20 each. However, the
price will move up to 50% if we also make designer hoodies or crewnecks for Area Cycles. They
will then be sold to Area Cycles for $20 each and they can also have the opportunity to make a
50% profit if they sell their hoodies and crewnecks for $40 each.
The final rebranding process is promoting Area Cycles. The price will vary in price
because of the different strategies for promoting. I chosed to market Area Cycles through
commercials, stickers, billboards and special events.
First of all, the cost for a local television station to create a 30-second commercial is
typically around $200 to $1,500. However, at this price, the commercial will only be aired for 2
minutes per hour. At this low price, the commercial will be aired typically during unpopular TV
shows, during the local news at noon, and other low rated shows. It was decided to be kept
cheap, because there is also a need to spend money for other promotional plans. Our group will
use the commercial in order to promote the upcoming events for Area Cycles and to inform the
viewers what and where they are.
Next, I will order stickers online that shows the new developed logo for Area Cycles.
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Also, the stickers will include Area Cycles contact information. These stickers will be given
away during the special events or to those who visit the shop personally. The stickers will also be
placed on every bike that was purchased in Area Cycles. The price for these stickers are
$1,119.95 for 2,000 stickers. That means that each stickers will cost about 55.
After the commercial, apparel, and the stickers are finished and going we will need to
hire an event planner to plan Area Cycles promotion event at Lake Chabot Regional Park. An
event planner costs about $75 per hour. There will be a 28 day gap between planning and the day
of the event. Planning an event will take about 30 hours of planning. Therefore, the total cost of
an event planner will be $2,250. At this price, all of the planners needs, such as transportation,
private guide, lunch, and other admission fees to venues are already included. However, the fees
for the park and staffs are not included. The cost for a special event permit in Lake Chabot is
$250. Lake Chabot also asks for business profit fees. The cost for a for-profit businesses fee is
$50 per course. This means that if we sell bikes during the event they would have to pay the park
$50. Also, there is a vendor permit required. The cost for a vendor permit, in order to sell t-shirts,
foods, and drinks is $75 per event. There will be 3 events, so the total cost for the vendor permit
is $225. During this event, Area Cycles will also have to pay for staffing fees. There will be a $2
fee per person on biking events. Since there are 3 events and only 10 people can enter in each
one (fixie tricking contest, road bike race, and fixie bike race), the total cost for the staffing fee is
$60. Next, public safety officers are required to be present during the event. The cost for that will
be $110 per hour, and since the event will go on for 8 hours the total cost will be $880. Finally,
the last fee for the special event at lake Chabot will be the park rangers. The park rangers will
cost $73 per hour. This will bring the total cost for park rangers to $584.
The last step to promote Area Cycles, after the event, I will constantly remind everyone
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by advertising through billboard ads. The estimate cost for the development (designing) of the
billboard will cost about $500 to $1,000 depending on the size of the billboard. Depending on
location, the billboard itself can be rented for $900 to $2,500 per month for city and interstate
signs. The total overall cost for the whole rebranding process is $13,520.95.




Rebranding Plan PRICE
Logo $1,000-$1,500
Apparel $10 per 50 t-shirts, $20 per 50 hoodies or crewnecks
Stickers $1,119.95 for 2000 stickers
Overall = $4,119.95

Rebranding Plan Time Price
2 Workers for Rearrangement of Shop 2 hrs/day for 3 days $102
Commercial (Local stations only) 30sec each for 2 min/hr every
afternoon
$200-$1,500
Creation of Billboard 1 to 2 weeks $500-$1,000
Billboard (City or interstate signs) Paid monthly $900-$2,500
Planning of the Event (Event Planner) (30 hours of planning) x ($75) $2,250
Permit to Hold an Event at the Park 9AM to 5PM $250
For-Profit Business Fee 9AM to 5PM (1 event) $50/event
Vendor Permit (t-shirts, foods, drinks) 9AM to 5PM (3 events) $75/event
Staffing Fees for Bike Events 9AM to 5PM (10 persons) x (3
events)
$2/person
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Park Rangers 9AM to 5PM ($110 Per hour) $880
Public Safety Officers 9AM to 5PM ($73 Per hour) $584
Overall Amount = $9,401





B. Proposed Metrics to Measure Return on Investments (ROI)
1. Promotion Plans
Expected increase in sales up to 15%
- High demand for stickers
- More people are talking about Area Cycles
- More people biking
- High demand for fixed gear bikes
2. Logo
We expect to increase sales by 3%
- Survey about the new logo
- Compliments about the design of the logo
3. Rearrangement of Shop
We expect to increase sales by 2%
- Survey on how customers feel about the shop
- Easier to fix or make bikes in the shop
- More space for products in the shop
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4. Apparel
We expect to increase sales by 10%
- Survey on what customers feel about the t-shirts, hoodies, and crewnecks
- Observed that Area Cycles shirts are worn in schools, skate/bike parks, and during biking
The total return on investment is an increase in sales to 30%








VII. BIBLIOGRAPHY
A. Internet Sites
askville.amazon.com -
http://askville.amazon.com/cost-rent-average-billboard-
sign/AnswerViewer.do?requestId=12691479
www.areacycles.com - http://www.areacycles.com/
www.bizstats.com - http://www.bizstats.com/
www.ebparks.org -
http://www.ebparks.org/Assets/_Nav_Categories/Activities/Permits/Special+Event+Perm
it+Fees+List.pdf
eventplanning.about.com - http://eventplanning.about.com/od/eventcareers/a/fees.htm
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www.fitsmallbusiness.com - http://fitsmallbusiness.com/how-much-does-billboard-
advertising-cost/
www.makestickers.com - http://www.makestickers.com/Stickers_Pricing.aspx
smallbusiness.chron.com - http://smallbusiness.chron.com/much-television-advertising-
really-cost-58718.html
www.yelp.com - http://www.yelp.com/biz/areacycles-castro-valley-2
www.zipskinny.com - http://zipskinny.com/index.php?zip=94546
B. Printed Resources
Business Operations Research Events 2014 (DECA) by PostNet
Smoothie King Gahanna Sample Rebranding Research Paper
C. Interviews
Kenji, Area Cycles founder/owner in Castro Valley, California
VIII. APPENDIX
Questions:

Who opened the business? Why?

How long have you been biking?

How long have you been in business?

Why was the location chosen?

How many employees do you have?

What do you feel your brand is now?

If you could change/improve something about your business, what would it be?

How do you see your business in the future?

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What is your mission statement?

Employee Questions:

How long have you been working here?

How long have you been biking?

What do you think of the brand for Area Cycles?

How do you provide input into this business?






AREA CYCLES SURVEY


Are you a cyclist?
YES NO
15% 85%

If you are a cyclist what bike shop do you gravitate to? (write own answer)
- Mikes Bikes
- The Bike Company
- Vics Bikes

If you are a cyclist, where do you ride at?(write own answer)
- Everywhere - Oyster Bay Trail
- To school - Lake Chabot Regional Park
- Marina Park

If you arent a cyclist, would you become one?
YES NO
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40% 60%

And where would you ride?(write own answer)
- Lake Chabot - San Leandro Hills
- Marina Park - Lake Merrit
- Alameda - Castro Valley Hills

Have you heard of Area Cycles?
YES NO
20% 80%



If you have a question about bikes, where would you go for in depth information?
Bike Shop Someone who bikes that you know Internet Other
25% 15% 55% 5%

Do you know about the different types of bikes there are, such as fixed gear, road bike,
BMX etc.
YES NO
65% 35%

If you do, which would you (or already) ride on?
Fixed Road BMX Other
40% 15% 20% 25%

How much would you pay for a bike?

$80-200 $200-400 $500-800 $1000+
75% 15% 10% 0%

Would you prefer a bike that is customized on every part, or a pre-built together bike that
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you just purchase?
Customized Pre-assembled
65% 35%