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Pro Bike Swag Corp

Pro Bike Swag Corp. Kendra Curran, Richard Howe, Lauren Koerber and Asante Mayeka. Results Overview. PBSC severs the mid range mountain bike industry with a mid range price, high volume strategy in direct competition with Petal Pushers Results include Sales of $8,711,703 21,274 units sold

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Pro Bike Swag Corp

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  1. Pro Bike Swag Corp Kendra Curran, Richard Howe, Lauren Koerber and Asante Mayeka

  2. Results Overview • PBSC severs the mid range mountain bike industry with a mid range price, high volume strategy in direct competition with Petal Pushers • Results include • Sales of $8,711,703 • 21,274 units sold • Costs of $3,932,105 • Profits of just under $1,000,000 • Shareholder value of $9.83 • Earnings per share of $0.95 • Marketing strategy emphasizing mid range pricing, high awareness and strong distribution • Poor overall performance despite a 12.5% increase in sales, an increase in COGS by 2.8% and profit drop of 15.6%

  3. Advertising • PBSC is spending $750,000 in terms of brand advertising, well above the industry average • PBSC is spending just over $1 million in terms of total product advertising which is well below the industry average of $1.3 million • Petal Pushers is spending $250,000 in brand advertising and $1.5 million in total advertising

  4. Price • PBSC offers a mid range price to consumers which is still above the industry average • PBSC has raised its price by 2% over the past year • PBSC is undercutting Petal Pushers by $15 a bike

  5. Sales • PBSC has increased sales by 3% over the past year • PBSC is selling 3,000 more bikes per year than Petal Pushers • PBSC is just below the industry average in terms of sales

  6. Awareness • Currently sitting just below industry average • PBSC is sitting at 24% of market awareness • Petal Pushers has 3% more awareness

  7. Public Relations • PBSC is on par with the industry average of 0.18 • Petal Pushers have a PR of 0.17, giving PBSC an advantage

  8. Distribution • PBSC has invested heavily into distribution channels spending close to $600,000, almost twice as much as the industry average of $268,217 • PBSC is focused on Sports stores with little emphasis on Bike and discount stores • Petal Pushers spent a minimal amount of $146,202

  9. Conclusion • Industry second in wholesale sales revenue and a 12.5% increase in sales • Sales driven by distribution, competitive and public relations • Petal Pushers has increased product advertising and has established a high price which has increased their product awareness, despite shifting away from distribution support • Most likely threats will be an increase in public relations and distribution channels by Petal Pushers, as well as a possible venture into our target price market by Bikes R Us

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