Speedy Cycles Final Report Final Report Meet the

Speedy Cycles Final Report

Final Report Meet the Team! • President: Mariah Mc. Ginnis-Marston • VP Finance: Bari Badler • VP Brand Management: Jason Di. Giralomo • VP Advertising: Nicole Lehner • VP Sales Management: Justin Decino

• Financial Performance • Market Performance • Brand Strategy • Pricing Strategy • Advertising Strategy • Sales Channel • Business Strategy and Performance • Current Situation in Market • Speedy Cycle’s Future • What we have learned Final Report Agenda

Financial Performance Final Report

Q 5 Q 8 • • Financial Performance 7. 44 Gross Profit $1, 240, 723 Operating Expenses $1, 082, 268 ROI -55 Financial Performance 38. 811 Gross Profit $7, 887, 361 Operating Expenses $2, 243, 633 ROI 205 Q 6 • • Financial Performance 24. 285 Gross Profit $2, 664, 074 Operating Expenses $1, 504, 897 ROI -56 Q 7 • • Financial Performance 39. 454 Gross Profit $6, 835, 380 Operating Expenses $1, 856, 939 ROI 64 Financial Performance

Final Report Cumulative Financial Performance

Market Performance Final Report

Final Report Market Performance

Marketing Plan Highlights Final Report

Brand Strategy Workaholic Brand • Judgement We are the industry leaders in brand judgement for our work segment bike with a rating of 75 Rec Bike 2. 0 Brand • With a brand judgement of 67 we have Judgement decided to discontinue this bike and create a new brand design based around the Santa Cruzer Final Report New Brand Development • Increase our work bike offerings into a basic and pro version • Re-engineer our Rec bike and create a basic and pro version • Enter Youth and Speed bike segments to increase market share and better compete

Pricing Strategy Final Report

• Our Workaholic bike has a price judgement of 100 in the work segment. This indicates that we may be able to again increase our price because our customers are willing to pay more for this bike. We are priced similarly to that of our competitors in this category and consumers do not seem too price sensitive. • Our Rec Bike 2. 0 has a price judgement of 100 as well. However, this bike has not performed well in the market overall so we plan on using this pricing judgement as an example for the new recreation bike we plan on creating. • We may want to slightly decrease the price of our new recreation bike to gage demand then increase it in the following quarter if it does well in the market • Price gouging strategy if demand Final Report Pricing Strategy

• • • Our recreation bike advertisement did well as far as Ad Judgement. While we plan on discontinuing this particular bike, we now have a better grasp on what a successful recreation advertisement looks like and can use this information in future ad campaigns. • We plan to look at Steel Rider’s Santa Cruzer ad as a successful example moving forward Our Bike to Work Ad also did very well, scoring higher than all of our competitors. This ad will continue to run and can be used as an example moving forward on the appropriate amount of content to place in an ad as well as what customers are drawn to. Growth in our advertising efforts can be seen in the form of increased frequency of local ad placements, regional print media, paid search engine marketing and social media marketing • Steel Rider had 52 local ad placements last quarter compared to our 30, we saw their market demand share skyrocket using this strategy. • Testing out Paid SEM in Q 5 to increase our brand exposure • Social media presence in APAC Advertising Strategy

Sales Channel • • • Final Report Open new location in APAC and Europe Purchase Market Research • Allows us to see feedback of what the market thinks of our revised brand design, advertising and marketing strategies • Only buying market research in Europe and APAC but plan on improving our market share there and opening new stores once we see an increase in demand become more profitable Hire more sales and service people • Q 5 Tokyo • Considering opening locations in Melbourne (APAC) because the seasons are opposite allowing us to maintain demand year round by having locations in the northern and southern hemispheres • Hire more sales and service people • Add sales people to new store, Tokyo

Business Strategy & Performance Final Report

We have fewer bike designs that all of our competitors • This is not necessarily a bas thing if our demand was greater but we have a lower market share so we need to increase demand for our bikes and gain back market share Analyze competitor brands to see what components are leading to their • success In Europe Steel Rider has the largest brand • demand by far with the Santa Cruzer (Rec bike) Decrease our Rec bike costs to make up for last quarter loss of demand All competitors have set up retail locations in Amsterdam Need 4 Speed is our only competitor in Seville Business Strategy and Performance

Competition Final Report • Out total market share has decreased over the past quarter leaving us behind Need 4 Speed, Zorlox and Steel Rider • Our two target segments have been Recreation and Work bikes • Work -> we have fallen behind Need 4 Speed (34% Market Share and Zorlox (28% Market Share), but not by much. We have a market share in this segment of 27% • Recreation -> Steel Rider (36% Market Share), Need 4 Speed (20% Market Share) and Zorlox (25% Market Share) all have captured a greater share of the market than us in this category. We have lots of room for improvement with our • Our competition entered into the youth, mountain current markethas share of only 15% and speed market segments while we have not • We are entering the APAC market this quarter and focusing on introducing a speed bike and reengineering our recreation bike to better suit the market

Marketing Effectiveness Strengths Ads/ Advertising Campaign • Our ”Bike To Work” Ad rated highest in Ad Copy Judgement for the Work bike segment in Year 1 Creation of Wealth Final Report Liquid Assets • We have a large amount of Cash available for new investments • $3, 405, 782

Market Performance Final Report • Lowest in industry at. 210 • Our Recreation bike market share of only 15% brought us down Market Share • After Year 1 only 14% • Plan to increase our market demand enter new markets to increase our market share Financial Performance • We are doing well but not the financial leaders in the industry Limited Bike Selection • As of the end of Year 1 we only have 2 bike offerings • Plan to expand our offerings in our current and new segments Weaknesses

• Invest in research and development on new brand features that will improve our existing product offerings and create new profitable products • Invest in Paid Search marketing to continue and improve upon our already successful advertising efforts • Invest 50 -75% • Expand marketing efforts • Increase the number of local ad inserts • Create a new brand to better meet the needs of our target market • We currently only have two brand offerings on the market which is the least across the industry giving us ample room for growth Final Report Opportunities

Threats • Our current Recreation bike offering lacks the minimum requirements to meet the needs of our target market • Low total market demand compared to that of our competitors at only 14% Final Report

Moving 40 Forward 30 • • 20 10 0 Item 1 Item 2 Item 3 Item 4 Final Report Our price is comparable to that of our competitors, so we do not believe price is playing a large factor in demand As far as our search engine results, we are leading the work segment with out Bike to Work ad. We have an average click through rate of 26% which is more than double that of our competitors • We have not been as successful with our recreation bike- Steel Rider’s Santa Cruzer advertisement has double the

Final Report • Europe continues to have a high demand for work bikes overall • Amsterdam and Seville both have a high demand for this market segment • APAC market has the highest demand for recreation bikes • The customer union did not recommend out recreation bike during Q 4 because it fell short of the minimum requirements for the target segment • We plan on re-engineering this bike to better suit our customers and meet demand • Customers seem to be happy with our marketing efforts and our pricing strategy • APAC market has a high demand for speed bikes- only 1 other competitor in the market is currently offering speed bikes, there is a huge opportunity here for us to gain market share Lessons Learned

• Invest in research and development In • Improve market performance Conclusion… • Expand on advertising efforts • Brand development Final Report • Open new store locations and increase sales force

Final Report Team 1 Thank you!