Bicycle: Revenue and Overall Impact

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Baldwin Bicycle Company

by Van Essa on Oct 29, 2012

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[pic]Baldwin Bicycle CompanyPresentation Transcript

• 1. BALDWIN BICYCLECOMPANY2nd Group CaseGroup I:Jake BasaVanessa PabuhatSister Marietta PiaKatrina Pineda

• 2. OUTLINEI. BACKGROUNDII. STATEMENT OF THE PROBLEMIII. OBJECTIVESIV. DATA PERTINENT TO HI-VALU PROPOSALV. ALTERNATIVE COURSES OF ACTIONVI. ANALYSISVII. CONCLUSION

• Baldwin Bicycle Company (BBC) had been in the business for almost 40 years manufacturing above average (quality( Ms. Susan Leister, Marketing VP(3. BACKGROUNDBALDWIN BICYCLE COMPANY: & Current operation of BBC is at 75% of one-shift capacity( Sales generated from independently owned toy stores and bicycle shops. BBC had never before distributed it products through department store chains of any type.( Current annual sales of about US$10million( In 1989, BBC line includes 10 models ranging from small beginner’s model to 12-speed adult’s model(price) bicycles

• Hi-Valu Stores’ sales volume has grown to the extent that it was beginning to add “house brand”/private label merchandise to its product lines( Hi-Valu Stores, Inc. operates a chain of discount department stores( Mr. Karl Knott, buyer(4. BACKGROUNDHI-VALU COMPANY

• The proposal is a for a 3-year period , contract would be automatically extended on year-on-year basis, with at least 6 months notice if contract will not be extended( However, Hi-Valu would agree to take title to any bicycle that had been...
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