Presentation on theme: " Sales Revenue- $12,483,197 (+21%) Units Sold – Coolio = 42,256 - Funsta = 31,212 - Total = 73,468 Costs - $5,986,896 Profits – $1,776,239 (-23%)"— Presentation transcript:
Sales Revenue- $12,483,197 (+21%) Units Sold – Coolio = 42,256 - Funsta = 31,212 - Total = 73,468 Costs - $5,986,896 Profits – $1,776,239 (-23%) SHV - $16.50 Earnings per Share - $1.621
Strengths Bikes R Us sells the most youth bikes in the industry; Coolio_2014 is the most popular youth bicycle on the market. Bikes R Us has never endured a loss in their professional history. Weaknesses Bikes R Us has failed to succeed in the mountain and road bike categories this limits our capability to compete. Bikes R Us is only about 1/3 the size of industry leaders DaBois Bikes. Opportunities New youth bike; Funsta_2017, is expected to succeed as our second youth bicycle. Recent losses by Live 2 Ride have created opportunities to grow and compete with larger firms. Threats Rivaling firms are growing much faster rates than Bikes R Us. Bikes 4 Bros’ youth bike the “Little Bro” is very closely competing with the “Coolio_2014’s” sales numbers.
Provide low cost & reliable bicycles Sell to Discount & Sports stores Strategy to sell many bikes and get our brand well known in the population Advertise through TV and internet which focuses on our demographic Introduced a second youth bike to reach more consumers
Youth bikes priced at $315 and $300 respectively Bikes R Us spent $2.2 million collectively on brand and product advertising while only contributing just over $200,000 on PR as it is not very important in the youth bikes industry $150,00 per year was spent on quality improvement An average of $414,000 was spent a year on efficiency improvement
COGS - $5,986,896 Salaries - $330,000 Distribution Channel Support - $180,141 Finished Goods Warehousing - $66,000 SCU – 35,021 Max Efficiency – 54.3%