1. Blake’s Bikes Marketing Management Analsys Group Members: Christopher Brunet - 201104350 Samantha Curry – 200903333 Erin Ford - 201104557 William MacGillivray – 201103094

2.  Sales- $7,999,994  Units Sold- 30,266  Costs- $7,364,927  Profits- $635,067  SHV- $10.18  Earnings per share- $0.635  Mission Statement: To become the “Wal-Mart of bike manufacturing.”

3.  Decreased from $475 to $469  Industry average was $546  The suggested retail price was $550  Low price, high volume ◦ Take advantage of economies of scale  Room exists to raise prices

4.  Lowered advertising, public relations and branding costs by $230,000 (25% drop)  $1,290,000 was well below industry average of $1,726,000  This was in line with our strategy of being a discount provider  Focus is not on brand recognition, but on price leadership  Promotion was not essential to sales, even though we cut marketing costs by 25% we still sold all possible units

5.  Retail margin was previously 35% for all stores, with no support  Focus was on getting our bikes distributed through sports stores and discount stores ◦ Higher retail margins, more support  Consistent with our pricing strategy

6.  Industry leader in units sold with 30,266 sales  Sales increased by 532 units relative to 2012  Estimated market size of 140,00 ◦ Only 110,262 sold ◦ Untapped market – Raise production and lower prices

7.  Sports stores were targeted  Cut unnecessary promotion expenses ◦ Focus is on cost leadership, not brand recognition or product differentiation  Pricing strategy was successful ◦ Highest number of sales and lowest profit margin and price points led to leading the industry in market share