A Marketing Analysis

Emily Ennett, Jessica McCullough, Ryan Aucoin, Emma Taylor

February 14th, 2011

Overview of Performance

• High price, Lower volume strategy

• Selective distribution• High branding and

advertising

2010 2011 2012

Sales $7, 150, 000 $5, 562, 830 $6, 824, 096

Units Sold 20, 000 12, 226 24, 272

Costs $3, 820, 000 $2, 560, 474 $4, 474, 031

Profits $1, 022, 058 $795, 533 $1, 721, 189

SHV $9.60 $9.32 $ 4.10

EPS $1.022 $0.796 -$1.721

Prices and Sales2010 2011 2012

Vandelay Industries 550 700 605

Ride of Your Life 550 625 600

Industry Average 550 556 562

Vandelay Industries Ride of your Life Industry Average0

5,000

10,000

15,000

20,000

25,000

30,000

24,272

19,894

21,452

201020112012

• 2010-2011 sales revenue declined by -22%• 2011-2012 sales revenue increase by 22.7%• In 2012 we sold over 4000 more units than our director competitor as well as outselling the industry average

Retail PriceCompany 2011 2012

Vandelay Industries 700 605

Ride of Your Life 625 600

Life Cycle Co. 550 550

Firm 6 550 550

Firm 7 550 550

Rolling Spokes 522 522

Pedal Metal Inc. 500 550

PromotionVANDELAY INDUSTRIES 2010 2011 2012

Production Advertising $ 750, 000 $ 750, 000 $ 1, 200, 000

Public Relations $ 500, 000 $ 500, 000 $ 500, 000

Branding N/A N/A $ 1, 600, 000

PlaceDistribution Support Margin (%)

Sports Stores $ 280, 000 55 %

Bike Shops $ 92, 000 50 %

Conclusions

• Doubled sales between 2011-2012 due to increased production of units, lower price, and increased advertising

• Although we are in debt our firm is confident in its abilities increase its solvency and profit