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Marketing Management analysis –Bikes4Bros

Gareth Winsor (201005305) Rob Diamond (201005105) Josh Crotch (201006284) Cory Clark (201006173). Marketing Management analysis –Bikes4Bros. OVERVIEW. This year Bikes4bros achieved: Sales increased 10% to $8,736,682 25,602 units sold-an increase of 10%

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Marketing Management analysis –Bikes4Bros

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  1. Gareth Winsor (201005305) Rob Diamond (201005105) Josh Crotch (201006284) Cory Clark (201006173) Marketing Management analysis –Bikes4Bros

  2. OVERVIEW This year Bikes4bros achieved: • Sales increased 10% to $8,736,682 • 25,602 units sold-an increase of 10% • Costs of goods sold increased 12% to $4,558,292 • Profit dropped 2% to $1,447,789 • SHV increased 10% to $12.89 • Earnings per share increased 10% to $1.448

  3. PRICE • We maintained last years price at $525 • This price is $21 below the industry average of $546, making it the second lowest in the industry, just above Bikes R Us • It is $25 below the recommended price of $550 • Although sales increased this would not be related to a change in our pricing as we did not change our price.

  4. PROMOTION • Brand advertising was increased 80% to $450,000. Product advertising was left at $825,000. PR were also unchanged, with $180,000 being spent. • Our product awareness increased 5% to 0.21, making it tied for second highest in the industry and 0.01 above the industry average. Our PR dropped 17% to 0.1, leaving it tied for the lowest in the industry and 0.03 below the industry average. • Our increased spending on brand advertising resulted in an increase in sales.

  5. PLACE • We kept all our margins at 35% • For extra support we spent $85 in both bike shops and discount stores. For sport stores we spent $225. • We had 55 bike shops carrying our product, the second highest in the industry. With 143 discount stores carrying our product we were second again in the industry. We were second again with sport stores with 174 stores carrying our product, only 3 behind the leader. Bikes R Us was the leader in all store types. • Increasing our spending on sport stores was extremely beneficial as it resulted in sales of $10,468,235, compared to sales of just approximately $1.5m in both discount stores and bike stores.

  6. CONCLUSION • We think it would be beneficial to increase store support in an effort to have the most stores carrying our product in the industry. • Lower our production this year as we have leftover unsold product from 2011. • Increase the store margins in an effort to increase sales.

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