This was the worst quarter for me because i only held

This preview shows page 8 - 11 out of 15 pages.

This was the worst quarter for me because I only held 25% of the market share. I was still#2 but my top competitor had a bigger lead on me. They had a little over half the Recreational share, and 35% of the Mountain share. A different competitor beat me in Speed share but it was less than 10% more. I had the second-highest market demand mainly because of my Recreationalbrand.I did hit $2.4 million in Sales with 2,001 units sold. I made three times in gross profits compared to last quarter. My net profit was four times more than quarter 3, resulting in four times the Cumulative Net Profit of last quarter for this division. My most profitable brand was the Carbon Cruiser with $598,683 and a profit per unit of 653. I had a higher profit per unit for
Running Head: Simulation PaperWaechter 1my Carbon-Missle but that makes sense since it was more expensive. I was right when I said thatI should have opened up in NYC instead of Rio in the last quarter because NYC had two times the demand than Rio. Since I didn’t open up a store in NYC until last quarter I had no sales in it. That is the main reason I didn’t do well in this quarter. I did make the right decision in which brands to make first because Recreational had two times as much demand than Mountain and a little more than three times the Speed segment.I had the highest average price and lowest-performing advertising which equated to my low demand as well. I had one more social media campaign than my top competitor and he still had double the number of clicks than me. I also had almost twice the number of salespeople than them which meant there was an issue there as well. I had no positive ratings for my ads. On a positive note, I did well with the best-rated brand in all three categories. Recreation was a bigger segment and had more searches and so I should have realized that I need to try and make that brand better. The strategic graphs showed a steady decline from quarter 2 and really gave me an insight as to how far behind I was to my top competitor. I neededto really look at what they were doing in ads and change that to reflect them so I would at least be doing okay there. My biggest problem with the brands was that they might have been too expensive, therefore I lowered the prices on all three brands. I only had high price judgment in the Recreation segment while the others were in their seventies and eighties. Again, this is because of the higher price that I made thinking that people will stay pay more for a quality item.My competitor had prices lower than $1,000, however that is not as low as I want to go. Lowering the price is good but not to the point of not making a profit. I made a $2.4 million
Running Head: Simulation PaperWaechter 1profit in Sales Revenue. My Gross Margin was $1.5 million. I did not get any good ad reviews and I realized that it was because I had just a little different choice of what to put in the ads. I had possibly lower ad judgments than the last time.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 15 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
John Eaton

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture