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Bikes R Us

Bikes R Us. Overview. Sales Revenue - $12,483,197 (+21%) Units Sold – Coolio = 42,256 Funsta = 31,212 Total = 73,468 Costs - $5,986,896 Profits – $1,776,239 (-23%) SHV - $16.50 Earnings per Share - $1.621. Overview - SWOT. Strengths

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Bikes R Us

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  1. Bikes R Us

  2. Overview • Sales Revenue- $12,483,197 (+21%) • Units Sold – Coolio = 42,256 • Funsta = 31,212 • Total = 73,468 • Costs - $5,986,896 • Profits – $1,776,239 (-23%) • SHV - $16.50 • Earnings per Share - $1.621

  3. Overview - SWOT Strengths Bikes R Us sells the most youth bikes in the industry; Coolio_2014 is the most popular youth bicycle on the market. Bikes R Us has never endured a loss in their professional history. Weaknesses Bikes R Us has failed to succeed in the mountain and road bike categories this limits our capability to compete. Bikes R Us is only about 1/3 the size of industry leaders DaBois Bikes. Opportunities New youth bike; Funsta_2017, is expected to succeed as our second youth bicycle. Recent losses by Live 2 Ride have created opportunities to grow and compete with larger firms. Threats Rivaling firms are growing much faster rates than Bikes R Us. Bikes 4 Bros’ youth bike the “Little Bro” is very closely competing with the “Coolio_2014’s” sales numbers.

  4. Strategy • Provide low cost & reliable bicycles • Sell to Discount & Sports stores • Strategy to sell many bikes and get our brand well known in the population • Advertise through TV and internet which focuses on our demographic • Introduced a second youth bike to reach more consumers

  5. Finances & Marketing • Youth bikes priced at $315 and $300 respectively • Bikes R Us spent $2.2 million collectively on brand and product advertising while only contributing just over $200,000 on PR as it is not very important in the youth bikes industry • $150,00 per year was spent on quality improvement • An average of $414,000 was spent a year on efficiency improvement

  6. Operating • COGS - $5,986,896 • Salaries - $330,000 • Distribution Channel Support - $180,141 • Finished Goods Warehousing - $66,000 • SCU – 35,021 • Max Efficiency – 54.3%

  7. Short Term Goals

  8. Long Term Goals

  9. Conclusions

  10. Recommendations

  11. Questions?

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