Rolling Spokes Natasha Herron: Tamara Tuttle: Patrick Hale:

Sales have decreased ◦Revenue is 13.98% less than 2011 ◦Units sold are 26% less than 2011 Costs have been cut - requires balance ◦Decreased by 24.19% from 2011 Net Income has decreased by 17% ◦Remains highest in the industry ◦Shareholder value has increased by 6% to $12.33 ◦Earnings per share Overview of Rolling Spokes

Price Low price, high volume strategy at $522 ◦Currently the lowest in the industry Closest competitors sell at $550 ◦Closer to medium price, medium strategy ◦Potentially giving Rolling Spokes the niche market No real correlation exists between price and sales ◦Price has remained the same, but units of sales have dropped

Promotion The promotion mix ◦Awareness rating lowest at 0.15, below the industry average of 0.22 ◦PR rating below industry average ◦Branding remains on target but well-below industry average by 66% Spent less than 1 million dollars on branding, PR and advertising. ◦Industry average was over 2 million dollars

Place Decreased distribution rating from 2011 ◦2012 at 9%, implying that consumers will find our product at the stores they regularly shop at Well-below industry average of.16 and target rating of 0.5 Lowest average retailer margin ◦Rolling Spokes bike was less appealing since they retailers making less money off a purchase

Conclusion Inefficient management of the Marketing Mix Finding the right balance of cutting expenses High Net Income is not sustainable for the future, with current strategy