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Exercise – Annual Reports for Marketers

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This exercise asks you to apply Annual Reports for Marketers to a rival of Colorado Ricardo Mountain Bikes.

The Scenario: Colorado Ricardo Mountain Bikes

Colorado Ricardo Mountain Bikes was founded by Ricardo Francisco, a keen off-road cyclist who grew frustrated with bikes breaking down under the strain of the Colorado mountains. After years of trial and error, he built a bike tough enough to survive the terrain and named it the “Colorado Ricardo”. Word spread quickly among local riders, and Ricardo gave up his day job to build and sell bikes full-time from a small workshop outside Denver.

A larger, publicly listed bike manufacturer has just started competing directly for Colorado Ricardo’s off-road customers. Before deciding how aggressively to respond, Ricardo wants to understand this rival’s position by reading its latest published annual report.

Your task: As a marketer rather than an accountant, list at least three things you would look for in the rival’s annual report, and explain what each one would tell you about how seriously to treat the new competitive threat.

Annual report sections a marketer should read: narrative, financials, and risk factors

Once you have drafted your own answer, compare it with Marketing Teacher’s suggested answer.