Download presentation
Presentation is loading. Please wait.
Published byArleen Waters Modified over 8 years ago
1
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 Customer Satisfaction Petal PushersPBSCSpinAwayFirm4Bikes R UsAverage Wholesale Sales$8,357,400$8,711,703$7,739,922$8,930,768$8,668,006 $8,481,559.80 Brand Advertising$250,000$750,000$400,000$250,000$300,000 $390,000.00 Total Product Advertising$1,500,000$1,050,000$1,500,000$1,200,000$1,265,000 $1,303,000.00
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 Retail Price 2013%2012%2011Target Petal $6000%$6009%$550 PBSC $5852%$5755%$550 SA $495-11%$5551%$550 Firm4 $6052%$5958%$550 BRU $5350%$535-3%$550 $564-1%$5724%$550
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 PRICE (AND SALES VOLUME) FirmSales 2013%2012%2011 Petal Pushers18,572-10%20,5903%20,000 Pro Bike Swag Corp21,2743%20,7144%20,000 SpinAway25,00014%22,00010%20,000 Firm421,088-3%21,7889%20,000 Bikes R Us24,8888%23,11216%20,000 22,1642%21,6418%20,000
6
Awareness Currently sitting just below industry average PBSC is sitting at 24% of market awareness Petal Pushers has 3% more awareness PROMOTION (Product Advertising, Public Relations, Branding) FirmAwareness Rating 2013%2012%2011Target Petal Pushers0.274%0.260%0.26 Pro Bike Swag Corp0.244%0.23-12%0.26 SpinAway0.2817%0.24-8%0.26 Firm40.25-7%0.274%0.26 Bikes R Us0.244%0.23-12%0.26 0.2564%0.246-5%0.260.25
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 PR Rating 2013%2012%2011Target Petal 0.170%0.17-6%0.18 PBSC 0.180%0.180%0.18 SA 0.14-13%0.16-11%0.18 F4 0.3036%0.2222%0.18 BRU 0.12-29%0.17-6%0.18 -1%0.180%0.180.10
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 Customer Satisfaction Petal PushersPBSCSpinAwayFirm4Bikes R UsAverage Average Retailer Margin25%30%37%30%35% 31% Distribution Channel Support$146,202$570,902$152,673$194,020$279,288 $268,617.00
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
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.