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EAGLE RIDER
Presentation to Our Shareholders
The Past Eight Years
The Past Eight Years
99.5%Percentile in Global SHV
6/8Years As The Market
Leader in SHV
$62MCumulative Profit
We believe that we are
the best company for
shareholders to invest,
and here’s why:
Our Main Objectives were:
✓ To get high shareholder values

✓ Create profit

✓ Increase Awareness of our bikes

✓ Stand out from competitors

✓ Learn from mistakes and improve
ORGANIZATION
Mission Statement
Our mission is to satisfy our  consumers by producing
premium quality bicycles. Through dedication in craft
we will insure our consumers to enjoy the cool breeze
and braise freely on the road.
STRATEGY
Risk
Yield
Balancing Risk and Yield
Risk
Yield
Balancing Risk and Yield
RiskYield
Balancing Risk and Yield
Road Segment
Youth Segment
Mountain Segment
Road Segment
Youth Segment
Mountain Segment
Road Segment
Youth Segment
Mountain Segment
• Our shareholders are our number one priority
• Share value growth
Shareholder Strategy
1880%
• Dividends
Shareholder Strategy
2016-2020 $0.00
2021-2022 $5.00
2023 $20.00
2024 $16.80
• No debt (0 DoE)
• High cash reserves: 20M+
• A fine balance
Obtaining High Growth
Consumer Strategy
“The road less traveled.”
Healthy Margins
Understanding The
Market
High Quality
Branding
FINANCE
0
55
110
165
220
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$11.10 $13.45 $15.56 $18.62 $22.27
$36.34
$53.07
$68.69
$82.52
SHV Compares to The Industry Average
0
55
110
165
220
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$11.10 $14.99
$22.14 $27.42
$63.41
$107.88
$130.77
$170.03
$208.69
$11.10 $13.45 $15.56 $18.62 $22.27
$36.34
$53.07
$68.69
$82.52
SHV Compares to The Industry Average
$0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$5,610,544.00
$5,251,613.00
$4,905,539.50$4,950,859.25
$1,720,581.00
$2,016,911.50
$1,743,699.75$1,585,766.50$1,388,115.00
Profit Compares to The Industry Average
$0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$12,234,940
$10,272,377
$10,015,673
$12,050,229
$9,289,826
$2,945,185$3,002,760
$1,762,234
$1,388,115
$5,610,544.00
$5,251,613.00
$4,905,539.50$4,950,859.25
$1,720,581.00
$2,016,911.50
$1,743,699.75$1,585,766.50$1,388,115.00
Profit Compares to The Industry Average
$0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$12,234,940
$10,272,377
$10,015,673
$12,050,229
$9,289,826
$2,945,185$3,002,760
$1,762,234
$1,388,115
0.00%
9.00%
18.00%
27.00%
36.00%
2016 2017 2018 2019 2020 2021 2022 2023 2024
30.09%
26.70%
35.42%34.77%
30.69%
25.13%
26.34%
18.17%
16.95%
Profit Margin Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
18.40%
17.80%
15.70%
16.40%
16.80%
18.50%
19.00%
19.30%
20.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
Market Share Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
18.40%
17.80%
15.70%
16.40%
16.80%
18.50%
19.00%
19.30%
20.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
Market Share Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
30%
32%
34%
50%
100%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
18.40%
17.80%
15.70%
16.40%
16.80%
18.50%
19.00%
19.30%
20.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
Market Share Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
30%
32%
34%
50%
100%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
23.60%
20.10%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
MARKETING
Not all channels are equal:
Marketing Research
Segment TV Internet Magazines
Road 10% 40% 60%
Mountain 40% 30% 50%
Youth 70% 20% 20%
+
Segment Advertising PR
Road Low High
Mountain High Low
Youth High Low
+
Channel Distribution Marketing Sensibility
Marketing Decision Analysis:
0
0.1
0.2
0.3
0.4
$0 $600,000 $1,200,000 $1,800,000 $2,400,000
TV Internet
Magazine
Mountain Segment
0
0.1
0.2
0.3
0.4
$0 $600,000 $1,200,000 $1,800,000 $2,400,000
TV Internet
Magazine
Road Segment
0
0.1
0.2
0.3
0.4
$0 $600,000 $1,200,000 $1,800,000 $2,400,000
TV Internet
Magazine
Youth Segment
What set us apart: Quantitative Analysis
5easy steps used to determine
advertising expenditures
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 1: Determine advertising expenditure
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 2: Finding the corresponding audience proportion
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 3: Scale down advertising expenditure in $200,000 increments
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 4: Finding the corresponding marginal improvement in alternative channels
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 5: Comparing the sum of marginal improvement
to the scaled down expenditure
What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal	
Improvement	
Internet
Marginal	
Improvement	
Magazine
Marginal	
Improvement	
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 5: Comparing the sum of marginal improvement
to the scaled down expenditure
Marketing Decisions
Advertising Public Relations
TV Magazine Internet TV Magazine Internet
Mountain $0.00 $1,000,000.00 $1,250,000.00 $0.00 $0.00 $0.00
Road $0.00 $0.00 $0.00 $0.00 $1,000,000.00 $1,000,000.00
Youth $1,800,000.00 $0.00 $0.00 $0.00 $0.00 $0.00
“Eagle Rider dominates the road segment with the lightning fast 420 Bikes.”
July, 2020 Issue, Cycling Magazine
CONCLUSION
What have we learned:
✓ It is very important to review financial statements

✓ There has to be a balance between price, marketing and
distribution

✓ Cash reserves should be used wisely

✓ Continuously adjust decision

To Summarize..
Working as a team gave us the opportunity to know each
other, share different ideas, compromise and learn from each
other. Mike’s Bikes has given us a better understanding of
the real world and how a manufacturing company works.

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Mikes Bikes Business Simulation | Global 99.8th Percentile

  • 1. EAGLE RIDER Presentation to Our Shareholders
  • 3. The Past Eight Years 99.5%Percentile in Global SHV 6/8Years As The Market Leader in SHV $62MCumulative Profit
  • 4. We believe that we are the best company for shareholders to invest, and here’s why:
  • 5. Our Main Objectives were: ✓ To get high shareholder values
 ✓ Create profit
 ✓ Increase Awareness of our bikes
 ✓ Stand out from competitors
 ✓ Learn from mistakes and improve
  • 7. Mission Statement Our mission is to satisfy our  consumers by producing premium quality bicycles. Through dedication in craft we will insure our consumers to enjoy the cool breeze and braise freely on the road.
  • 8.
  • 16. • Our shareholders are our number one priority • Share value growth Shareholder Strategy 1880%
  • 17. • Dividends Shareholder Strategy 2016-2020 $0.00 2021-2022 $5.00 2023 $20.00 2024 $16.80
  • 18. • No debt (0 DoE) • High cash reserves: 20M+ • A fine balance Obtaining High Growth
  • 19. Consumer Strategy “The road less traveled.” Healthy Margins Understanding The Market High Quality Branding
  • 21. 0 55 110 165 220 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Average Eagle Rider $11.10 $13.45 $15.56 $18.62 $22.27 $36.34 $53.07 $68.69 $82.52 SHV Compares to The Industry Average
  • 22. 0 55 110 165 220 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Average Eagle Rider $11.10 $14.99 $22.14 $27.42 $63.41 $107.88 $130.77 $170.03 $208.69 $11.10 $13.45 $15.56 $18.62 $22.27 $36.34 $53.07 $68.69 $82.52 SHV Compares to The Industry Average
  • 23. $0.00 $3,500,000.00 $7,000,000.00 $10,500,000.00 $14,000,000.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Average Eagle Rider $5,610,544.00 $5,251,613.00 $4,905,539.50$4,950,859.25 $1,720,581.00 $2,016,911.50 $1,743,699.75$1,585,766.50$1,388,115.00 Profit Compares to The Industry Average $0.00 $3,500,000.00 $7,000,000.00 $10,500,000.00 $14,000,000.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Average Eagle Rider
  • 24. $0.00 $3,500,000.00 $7,000,000.00 $10,500,000.00 $14,000,000.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Average Eagle Rider $12,234,940 $10,272,377 $10,015,673 $12,050,229 $9,289,826 $2,945,185$3,002,760 $1,762,234 $1,388,115 $5,610,544.00 $5,251,613.00 $4,905,539.50$4,950,859.25 $1,720,581.00 $2,016,911.50 $1,743,699.75$1,585,766.50$1,388,115.00 Profit Compares to The Industry Average $0.00 $3,500,000.00 $7,000,000.00 $10,500,000.00 $14,000,000.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 Industry Average Eagle Rider $12,234,940 $10,272,377 $10,015,673 $12,050,229 $9,289,826 $2,945,185$3,002,760 $1,762,234 $1,388,115
  • 25. 0.00% 9.00% 18.00% 27.00% 36.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 30.09% 26.70% 35.42%34.77% 30.69% 25.13% 26.34% 18.17% 16.95% Profit Margin Progression
  • 26. 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 18.40% 17.80% 15.70% 16.40% 16.80% 18.50% 19.00% 19.30% 20.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket Market Share Progression 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket
  • 27. 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 18.40% 17.80% 15.70% 16.40% 16.80% 18.50% 19.00% 19.30% 20.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket Market Share Progression 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 30% 32% 34% 50% 100% 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket
  • 28. 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 18.40% 17.80% 15.70% 16.40% 16.80% 18.50% 19.00% 19.30% 20.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket Market Share Progression 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 30% 32% 34% 50% 100% 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket 23.60% 20.10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.00% 25.00% 50.00% 75.00% 100.00% Adv2 420 Bikes Rocket
  • 30. Not all channels are equal: Marketing Research Segment TV Internet Magazines Road 10% 40% 60% Mountain 40% 30% 50% Youth 70% 20% 20% + Segment Advertising PR Road Low High Mountain High Low Youth High Low + Channel Distribution Marketing Sensibility
  • 31. Marketing Decision Analysis: 0 0.1 0.2 0.3 0.4 $0 $600,000 $1,200,000 $1,800,000 $2,400,000 TV Internet Magazine Mountain Segment 0 0.1 0.2 0.3 0.4 $0 $600,000 $1,200,000 $1,800,000 $2,400,000 TV Internet Magazine Road Segment 0 0.1 0.2 0.3 0.4 $0 $600,000 $1,200,000 $1,800,000 $2,400,000 TV Internet Magazine Youth Segment
  • 32. What set us apart: Quantitative Analysis 5easy steps used to determine advertising expenditures
  • 33. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes
  • 34. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes Step 1: Determine advertising expenditure
  • 35. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes Step 2: Finding the corresponding audience proportion
  • 36. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes Step 3: Scale down advertising expenditure in $200,000 increments
  • 37. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes Step 4: Finding the corresponding marginal improvement in alternative channels
  • 38. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes Step 5: Comparing the sum of marginal improvement to the scaled down expenditure
  • 39. What set us apart: Quantitative Analysis Advertising Expenditure TV Marginal Improvement Internet Marginal Improvement Magazine Marginal Improvement $0 0.0000 0.0000 0.0000 $200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195 $400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300 $600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290 $800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255 $1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210 $1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175 $1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140 $1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115 $1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095 $2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080 $2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070 $2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055 $2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050 $2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040 Example: Road Bikes Step 5: Comparing the sum of marginal improvement to the scaled down expenditure
  • 40. Marketing Decisions Advertising Public Relations TV Magazine Internet TV Magazine Internet Mountain $0.00 $1,000,000.00 $1,250,000.00 $0.00 $0.00 $0.00 Road $0.00 $0.00 $0.00 $0.00 $1,000,000.00 $1,000,000.00 Youth $1,800,000.00 $0.00 $0.00 $0.00 $0.00 $0.00
  • 41.
  • 42.
  • 43. “Eagle Rider dominates the road segment with the lightning fast 420 Bikes.” July, 2020 Issue, Cycling Magazine
  • 45. What have we learned: ✓ It is very important to review financial statements
 ✓ There has to be a balance between price, marketing and distribution
 ✓ Cash reserves should be used wisely
 ✓ Continuously adjust decision

  • 46. To Summarize.. Working as a team gave us the opportunity to know each other, share different ideas, compromise and learn from each other. Mike’s Bikes has given us a better understanding of the real world and how a manufacturing company works.