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Ride of Your Life. Rhea Black (201005195) Leah Gillies (200902316) Chanel Johnson (201004987) Patrick McCrossin (200904268). Sales Summary. Sales $7,519,932 Units Sold 19,984 Cost of Goods Sold $3,535,776
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Ride of Your Life Rhea Black (201005195) Leah Gillies (200902316) Chanel Johnson (201004987) Patrick McCrossin (200904268)
Sales Summary • Sales $7,519,932 • Units Sold 19,984 • Cost of Goods Sold $3,535,776 • Total Other Costs $3,146,629 • Other Income $88,786 • Profits $648,419 • Shareholder Value $8.33 • Earnings per Share $0.65
Price • Our price decreased by 4% with a price of $625 in 2011 and $600 in 2012 • Our price continued to be the second highest at $600 and $5 below the highest price • Our price at $600 is $39 above the industry average • A decrease in price had a strong, positive affect on sales, so while price decreased, sales rose from $6,093,750 to $7,519,932
Place • 75% of our total sales took place in Sports Stores in 2012. • Yet the number of Sports Stores stocking our bikes decreased from 160 to 135. • Vandelay Industries invested $1,600,000 whereas we invested 500,000. • Selling 19,894 units did not meet our forecasted sales of 26,000 units. • Our awareness rating was 0.26, the average was 0.24. • Our profit could have increased if more money had been invested in Bike Shops then Discount Stores.
Promotion • Spent $1,575,000 on product advertising, $625,000 more than we did in the previous period. We decreased our expenditure on Public Relations by $100,000 to $400,000 in 2012. We doubled our expenditure on brand advertising to $500,000 • Spent the second highest in the industry on total product promotion, $460,000 less than the highest, Pedal Metal Inc. We spent the third highest on brand advertising at $500,000, $1,500,000 lower than the highest expenditure and $220,000 above the next highest price • Our amount spent on brand advertising falls $232,857.14 below the industry average. We spent $457,857.14 above the industry average on total product promotion • Our product promotion strategy seems to have a positive correlation to unit sales, that as we increased product promotion by $525,000, our unit sales increased by 4,894
Conclusion • Overall, our sales increased by 32.6%. The key reasons our sales increased are: • the decrease in price • more expenditure on advertising • increasing our production of bikes.
