Adventure Works proposes expanding into new outdoor equipment product lines like survival gear, sportswear, outerwear, bicycles, fishing gear, and canoes. The proposal discusses Adventure Works' current products and profits, 2005 sales research showing growth, costs and projected returns on new products. It outlines strategies and schedules to adopt the plan in 3Q05, implement in 4Q05, and evaluate and adjust in 3Q06 and 4Q06. The proposal identifies sales and marketing needs like closing sales faster, presenting concepts clearly, and leveraging customer database information.
Innovative Go-To-Market strategies for Financial Product Innovations
Adventure Works 2006 Sales Proposal
1. Adventure Works
2006 Sales Proposal
Linda Martin
Senior Vice President
Worldwide Sales
March 24, 2005
Adventure Works: The ultimate source for outdoor equipment
2. Executive Summary
• The Concept
Just-in-time retail inventory
• The Opportunity
Reduced overhead costs
Increased customer satisfaction
• The Potential
3. What We’ll Cover Today
• A review of our current products and profits
• 2005 sales research
• Proposed new products
• Costs on return and investment projections
• Terms and conditions
• Strategy and schedule
• Sales and marketing needs
• Questions and answers
5. Previous Year Profits
(in millions)
2002 2003 2004
Revenue 10.1 27.7 50.0
Cost of Goods 1.8 3.1 4.6
Gross Profit 8.3 24.6 45.4
Total Expenses 3.03 8.1 15.3
Pre-Tax Profit 5.27 16.5 30.1
Pre-Tax Profit as
64.6% 59.6% 60.2%
Percent of Revenues
6. 2005 Sales Research
• Customers
2005 is projected to attract 920,700 new
customers
27% of first-time customers have become
repeat customers
• Transactions
Average sale transaction = $52.17
75% of customers have bought at least 1 non-
sale item in addition to a sale item
7. Proposed New Products
• Survival gear
• Sportswear
• Outerwear
• Off-road bicycles
• Fishing equipment and tackle
• Canoes and personal rowing shells
8. Costs of Return on Investment
Projections
• Costs
• ROI
80
60 Costs
40 ROI
ROI
20
Costs
0
'06 '07 '08 '09
9. Terms and Conditions
• Terms and conditions #1
• Terms and conditions #2
• Terms and conditions #3
• Terms and conditions #4
• Terms and conditions #5
11. Sales and Marketing Needs
• Close sales faster
• Present complex concepts quickly and clearly
• Leverage database information (sales
numbers, customer locations, etc.)
12. Close Sales Faster
• Need and solution #1
• Need and solution #2
• Need and solution #3
• Need and solution #4
• Need and solution #5
13. Present Complex Concepts
Quickly and Clearly
• Need and solution #1
• Need and solution #2
• Need and solution #3
• Need and solution #4
• Need and solution #5
14. Leverage Database Information
• Need and solution #1
• Need and solution #2
• Need and solution #3
• Need and solution #4
• Need and solution #5