EAST COAST RIMS JILLIAN GEDDES, AUSTIN CARTER, CARY KONOPKA, BAILEY PENNEY Rolling in all Weather

OVER VIEW OF RESULTS East Coast Rims serves as a bike retailer with a high price, large awareness and high quality rating. Results for 2018 Sales of $37,218,240 (increase of 16.6%) 25,588 units sold (Decrease of 1.58% in mountain bike industry) Highest units sold in road and youth bikes Costs of $15,279,437 (decrease of 2.39%) A profit of $11,904,440 (increase of 51.6%) Shareholder value of $ (increase of 86%) Earnings per share of $16.15 East Coast Rims market strategy involved high price, and high awareness East Coast Rims is in direct competition with Whistler Bikes.

A STATEMENT OF THE FIRMS STRATEGY East Coast Rims road and mountain bikes are high quality, high price bikes. Youth bikes are low price, high quality and quantity East Coast Rims shareholder value $ and EPS of $16.15 In direct competition with Whistler Bikes who has a shareholder value of $102.42

FIRMS FINANCIAL RESULTS East Coast Rims had Wholesale sales of 37,218,240 Mountain bike sales of 25,588 Road bike sales of 7,400 Youth bike sales of 64, COGS of $15,279,437 with a decrease in costs of 2.45% from profits of $11,904,440 seeing a 52% increase from 2017

FINANCIAL ANALYSIS Average sales growth 29% Ability to reduce cost of production-management COGS 41% compared to IA 56% Profitability, highlight 2015 capital spending Return on sales 5 year EPS growth 70.8% Cash position Financing P/E 6.04, 7.88 PEG.085 Year Sales Cogs % of sales41.05%49.06%51.22%62.92%46.69%45.90%49.14%53.43% $1000's Year Sales Net Income Net Income Growth51.60%129.52%138.23%-31.85%18.17%26.19%43.45% % of Sales 31.98%24.61%13.47%7.90%22.67%21.30%18.16%13.78%

MARKETING ANALYSIS Marketing = branding, public relations and advertising Branded as high quality high price Match target for each dimension of marketing Aimed above target youth and road bike market because of high price sensitivity Youth bike market high price high quality vastly under producing, then making the executive decision to drop price and increase production Youth bike market, awareness rating of.33, slightly higher than the recommended Distribution rating of.54 in the road bike market compared to the.51 of whistler East Coast Rims highly effective and efficient marketing = dominating all markets Posting the highest total sales in all markets since 2015

OPERATIONS ANALYSIS Decrease in COGS by 16%, giving East Coast Rims a COGS percentage of 41.1%. 15.9% lower than the industry average Highest capacity in the industry, due to the demand for our products. With 46,000 standard capacity units. Quality rating of 0.83, the highest within the industry. High wastage of 21%, due to the large amount of capacity. Working at full capacity, creating no idle time.

SWOT ANALYSIS Strengths Efficient and effective marketing strategy Generate sales $.13/$1 of sales, Whistler Bikes $.193/$1 COGS Distribution strategy Ability to anticipate competitor’s decisions Financial management

SWOT ANALYSIS Weaknesses Underproduction causing loss of: Youth bike sales: 42.3%, 22.7%, 3% Road bike sales: 14.1% 8.9% 4.5% Future distribution Opportunities Cash position of competitors and profitability of competitors Rest of youth bike market Product Improve

SWOT ANALYSIS Threats Whistler Bike’s COGS and marketing strategy New bike launch by competition

RECOMMENDATIONS FOR THE FUTURE Increase average retailer margin Bike shops: 40% Sport stores: 35% Discount stores: 35% Capitalize on all markets 16% in youth bike market 21% in road bike market 7% in mountain bike market Increase capacity for expected future demand Maintain dividend, and quality index

RECOMMENDATIONS FOR THE FUTURE Wholesale sales increase of 21% in 2019 Supply of sales to bike market by % in mountain bike 44% in road bike 59% in youth bike

CONCLUSION Consistent high sales, driven by high awareness, high price Highest SHV $ Highest Earnings per share $ Lowest COGS in 2018 Biggest threats include direct competitor Whistler Bikes, very close SHV with a similar price and product strategy but lower quality, distribution, and wholesales. Be future oriented in order to ensure that East Coast Rims remains a successful company