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Emma Harlow Graham Haynes Neil McCabe Matt Sawler

reamTeam Corporation. Board of Directors: Reports and Presentations. Emma Harlow Graham Haynes Neil McCabe Matt Sawler. Synopsis of Price Strategy. reamTeam. Medium price/medium production at induction Low price/high production strategy future. Production Strategy.

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Emma Harlow Graham Haynes Neil McCabe Matt Sawler

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  1. reamTeam Corporation Board of Directors: Reports and Presentations Emma Harlow Graham Haynes Neil McCabe Matt Sawler

  2. Synopsis of Price Strategy reamTeam • Medium price/medium production at induction • Low price/high production strategy future

  3. Production Strategy • High production needed • 3 cost developments • Highest gross margin/lowest COGS • Highest SCUs SCUs

  4. Analysis of Financial Results • High opportunity costs • 2014-2016 • Upward trend shown • 2018 Anomaly Profit After Tax

  5. Marketing Conclusions • Shift in marketing funds during the introduction of youth bike • Positive results from financing productand branding • Leveraging media sensitivity (Ad/Pricing) • Large product demand created by our marketing strategy

  6. Product Awareness

  7. Operations Results • Failure to accurately plan for production and capacity • Did not produce enough bikes for demand – loss of sales • Wastage too high (35%) • Idle time too low (0%)

  8. SWOT Analysis Strengths • Highest industry product developments • Cause for an ever-increasing and highest industry profitability (ratios) • Highest gross margin (54.2%) • Highest capacity at 36000 SCU (average of 28,800) • Above high sensitivity indexes • Advertising and pricing for both bikes Weaknesses • Lowest SHV at $15.72 • Poor operations decisions • 0 Idle time for 2018; always low • 35% Wastage for 2018; always high • Lowest quality rating of 0.58 (average 0.76) • Lowest cash holdings in world • Future developments may require financing

  9. SWOT Analysis cont Opportunities • Unmet demand in both markets • 10,000-20,000 lost sales • Price drop possible (developments) • Increased demand, more sales • Market space still available • Youth and mountain segments Threats • Market share could be stolen • Youth bike market entries • JJRG - 50,000 units sold • Developments made to increase market share • Niche market unavailable to strategy

  10. Future Recommendation2 Year Outlook • Sell 15,000 additional youth bikes • Operations overhaul – get wastage at or below 25% • Keep expenses manageable and sales high – maintain a 50% gross margin • Sell 5,000 additional mountain bikes

  11. Question Period Thank you reamTeam Corporation

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