1. R IDE OF Y OUR L IFE Rhea Black (201005195) Leah Gillies (200902316) Chanel Johnson (201004987) Patrick McCrossin (200904268)

2. S ALES S UMMARY Sales $7,519,932 Units Sold 19,984 Cost of Goods Sold $3,535,776 Total Other Costs $3,146,629 Other Income $88,786 Profits $648,419 Shareholder Value $8.33 Earnings per Share $0.65

3. P RICE Our price decreased by 4% with a price of $625 in 2011 and $600 in 2012 Our price continued to be the second highest at $600 and $5 below the highest price Our price at $600 is $39 above the industry average A decrease in price had a strong, positive affect on sales, so while price decreased, sales rose from $6,093,750 to $7,519,932

4. P LACE 75% of our total sales took place in Sports Stores in 2012. Yet the number of Sports Stores stocking our bikes decreased from 160 to 135. Vandelay Industries invested $1,600,000 whereas we invested 500,000. Selling 19,894 units did not meet our forecasted sales of 26,000 units. Our awareness rating was 0.26, the average was 0.24. Our profit could have increased if more money had been invested in Bike Shops then Discount Stores.

5. P ROMOTION Spent $1,575,000 on product advertising, $625,000 more than we did in the previous period. We decreased our expenditure on Public Relations by $100,000 to $400,000 in 2012. We doubled our expenditure on brand advertising to $500,000 Spent the second highest in the industry on total product promotion, $460,000 less than the highest, Pedal Metal Inc. We spent the third highest on brand advertising at $500,000, $1,500,000 lower than the highest expenditure and $220,000 above the next highest price Our amount spent on brand advertising falls $232,857.14 below the industry average. We spent $457,857.14 above the industry average on total product promotion Our product promotion strategy seems to have a positive correlation to unit sales, that as we increased product promotion by $525,000, our unit sales increased by 4,894

6. C ONCLUSION Overall, our sales increased by 32.6%. The key reasons our sales increased are: the decrease in price more expenditure on advertising increasing our production of bikes.

7. Q UESTIONS AND ANSWERS