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Success Bikes

Success Bikes. Pat Carruthers, Ryan Gosse, Alyssa Dewar and Mike Livingstone. Agenda. Overview of Success Bikes 2014 Financial Results Analysis of Success Bikes’ Results 2008-2014 SWOT Analysis Recommendations for the Future. Success Bikes. Success Bikes’ Mission Statement:

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Success Bikes

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  1. Success Bikes Pat Carruthers, Ryan Gosse, Alyssa Dewar and Mike Livingstone

  2. Agenda • Overview of Success Bikes • 2014 Financial Results • Analysis of Success Bikes’ Results 2008-2014 • SWOT Analysis • Recommendations for the Future

  3. Success Bikes • Success Bikes’ Mission Statement: • At Success Bikes we truly abide by the belief that every customer should have the right to a premium product at a fair and reasonable price. • Moderate Pricing and High Volume Strategy • Average Price of our Premium Mountain Bike 2008-2014 $549 • Most recognizable brand with an awareness rating of 0.36 • Highest Volume of Sales in both Youth and Mountain Sectors

  4. Success Bikes: Financial Results 2014 • Shareholder Value ~ $29.38 • Cumulative Change in SHV ~ 215% • Retail Sales ~ $ 36,816,630 • Wholesale Sales ~ $25,771,641 • Gross Margin ~ $ 10,809,947 • Profit After Tax ~ $ 4,566,210

  5. Success Bikes: An Analysis I • Sales Growth:

  6. Success Bikes: An Analysis II • Cost of Goods Sold:

  7. Success Bikes: An Analysis III • Profitability:

  8. Success Bikes: Marketing Decisions • From 2013 to 2014 we increased our product advertising by $50,000, increased PR expenditure by $300,000 and maintained our brand advertising at $500,000. • This increased our awareness from 0.34 to 0.36 in the Mountain Bike sector and from 0.17 to 0.21 in the Youth Sector. Our level of investment in advertising expenditure enabled Success Bikes to uphold the highest awareness rating. • During the 2014 year Success Bikes maintained the price of $547 for the Mountain Bike and increased the price of our Trike Bike to $264.

  9. Success Bikes: Operational Decisions • During 2013-2014 Success’ increased production of bikes by a significant amount; 100.6% increase in Mountain Bike production, and a 24.2% increase in Trike production. This would prove to be an excellent decision as we sold all of our bikes! • Year-over-year Success Bikes: • Increased capacity purchased from $10,000 to $25,000 over the year. • Increased efficiency from $2,000,000 to $4,000,000. • Maintained our quality improvement at $73,000. • This enabled Success’ to see an increase in efficiency from 0.62 to 0.68 and an increase in the quality index from 0.55 to 0.64.

  10. Success Bikes: SWOT Analysis

  11. Success Bikes: Future Recommendations I • Once we began allocating more money to advertising, brand awareness and public relations, we witnessed significant increases in sales and profits. A smart strategy would be to maintain the high level of awareness through increased expenditures. • As we decreased quality in our products, it never resulted in a decrease in sales. In the future, lowering quality even more may prove to be beneficial. However, you would have to track sales to make sure that there is no visible negative effect.

  12. Success Bikes: Future Recommendations II • One of Success Bikes’ best decisions was to slightly undercut our main competitor’s price. By making our price simply $1.00 less than Mountain Excess’ price, we sold approximately 5,500 more bikes than them! • Despite selling significantly more bikes than Mountain Excess, our profits were barely higher than theirs. This is a result of Mountain Excess being in the Road Bike industry, where there is a higher possibility for profit. In the future Success Bikes would look to undercut Mountain Excess by a $1.00 in the Road Bike sector, and become the #1 player in the bicycle industry!

  13. Success Bikes “It is on our failures that we base a new and different and better success!”

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