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Blake’s Bikes Marketing Management Analsys

Blake’s Bikes Marketing Management Analsys. Group Members: Christopher Brunet - 201104350 Samantha Curry – 200903333 Erin Ford - 201104557 William MacGillivray – 201103094. Overview of Financial Results. Sales- $7,999,994 Units Sold- 30,266 Costs- $7,364,927 Profits- $635,067

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Blake’s Bikes Marketing Management Analsys

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  1. Blake’s Bikes Marketing Management Analsys Group Members: Christopher Brunet - 201104350 Samantha Curry – 200903333 Erin Ford - 201104557 William MacGillivray – 201103094

  2. Overview of Financial Results • Sales- $7,999,994 • Units Sold- 30,266 • Costs- $7,364,927 • Profits- $635,067 • SHV- $10.18 • Earnings per share- $0.635 • Mission Statement: To become the “Wal-Mart of bike manufacturing.”

  3. Pricing • Decreased from $475 to $469 • Industry average was $546 • The suggested retail price was $550 • Low price, high volume • Take advantage of economies of scale • Room exists to raise prices

  4. Promotion • Lowered advertising, public relations and branding costs by $230,000 (25% drop) • $1,290,000 was well below industry average of $1,726,000 • This was in line with our strategy of being a discount provider • Focus is not on brand recognition, but on price leadership • Promotion was not essential to sales, even though we cut marketing costs by 25% we still sold all possible units

  5. Place • Retail margin was previously 35% for all stores, with no support • Focus was on getting our bikes distributed through sports stores and discount stores • Higher retail margins, more support • Consistent with our pricing strategy

  6. Sales • Industry leader in units sold with 30,266 sales • Sales increased by 532 units relative to 2012 • Estimated market size of 140,00 • Only 110,262 sold • Untapped market – Raise production and lower prices

  7. Conclusion • Sports stores were targeted • Cut unnecessary promotion expenses • Focus is on cost leadership, not brand recognition or product differentiation • Pricing strategy was successful • Highest number of sales and lowest profit margin and price points led to leading the industry in market share

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