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Emma Harlow Graham Haynes Neil McCabe Matt Sawler

Harlow, Emma Haynes, Graham McCabe , Neil ( Sawler , Matthew . reamTeam Corporation. Board of Directors: Reports and Presentation . Emma Harlow Graham Haynes Neil McCabe Matt Sawler. (201103855) (201103218) (201103506) (201102510 ). Overview of Finances.

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Emma Harlow Graham Haynes Neil McCabe Matt Sawler

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  1. Harlow, EmmaHaynes, Graham McCabe, Neil (Sawler, Matthew reamTeam Corporation Board of Directors: Reports and Presentation Emma Harlow Graham Haynes Neil McCabe Matt Sawler (201103855) (201103218) (201103506) (201102510)

  2. Overview of Finances reamTeam • Expense Strategy • High Advertising • Low PR • Average Branding • Profits • Gross Margin down 63% • Net Income down 156% • SHV • Value only $5.00 - Down 47% • Earnings Per Share • Loss of $0.790 per share • Units Sold • 20,000 units* • Loss of 3,607 Multifirm Wholesale Revenue, World 2

  3. Synopsis of Market Strategy • Save money and prepare • Already above the 0.25 index value for advertising • Keep firm grip on advertising • Future in Youth Bikes • Highest number of stores, lowest annual logistical cost • Increased branding and particular advertising • Decrease product advertising • Untapped Potential • High demand potential • Capacity Allocation • High expenses made for $790,004 losses

  4. Pricing Decisions • Price increased by 1.6%, from $615-$625 • Decision prompted by highest industry awareness • 25$ below the highest competitor (Bombay) • $40 above our direct competitor (Hartford Wheelers) • Retail price was 4.8% above the industry average of $596 • Potential Success • Shortage of 3,607 units with increase • Shows high demand • Successful if not for error

  5. Promotion Strategy • Heavy Promotion Strategy • Total costs down from $1,175,000 to $1,325,000. • (11.3% decrease) • 21.5% higher expenditure than the industry average • Our direct competitor spent 30.5% less on promotion at $900,000 • Strong Correlation • Between sales and promotion • 3,607 units lost shows demand correlation

  6. Logistical Figures • Unacceptable Decisions • Poor reputation built • Zero 2013 store support gives firms no advantages • Margin extremes • Kept alive by Sports Stores • 60% Margin given to Sports stores • Where 60% of mountain bikes are sold

  7. Sales Conclusions • Sales fell drastically • 33% drop in sales • 156% drop in net income • 3,607 unit sales loss primary culprit • Sales could have potentially exceeded projections • Likely between 1-2 million dollars lost • Two Fatal Errors 1. Production Capacity Allocation 2. Poor Margin and Store Support Decisions • Yet, High Demand and Market Position • 2014 rebuilding but promising outlook

  8. Conclusions Market Share

  9. Questions?

  10. Thank you reamTeam Corporation

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