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 increased customers and transactions, costs and projected returns on new products. It also outlines strategies and schedules to implement the plan, and sales and marketing needs like closing sales faster, presenting concepts clearly, and leveraging customer database information.

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

4. Our Current Products
• Camping • Climbing
 Duffel Bags  Harnesses
 Daypacks  Climbing shoes
 Family camping tents  Helmets
 Foam sleep pads  Rappel gloves
 Internal frame packs  Rope bags
 Cookware  Carabineers
 Dehydrated food  Gaiters
packs

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

10. Strategy and Schedule
• Strategy
 Tactic #1
 Tactic #2
 Tactic #3
• Schedule
Adopt plan Implement Evaluate Adjust
3Q05 4Q05 3Q06 4Q06

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

15. Questions and Answers

16. Adventure Works: The ultimate source for outdoor equipment