Mikes Bikes Marketing Plan
Map bikes corporation is a bicycle manufacturing company that provides products and services to the local community of Sydney NEWS. Our production plant manufactures a variety of bicycles which we sell to customers through a variety of retailers & wholesalers including bike shops, sport shops & discount stores.
The main idea of the strategy is to take the middle route in regards to marketing, operations & finance. This way, we would not be lagging in any sector, and thus no other firm can take advantage of us in any sector. By marketing sure we have reputable investments in advertisement, public relations, distribution and etc, we would be able to watch the market and pounce on opportunities that may rise, while not worrying about all of our other sectors of business, that s for the very early rollovers (The introduction of mountain bike). For the next coming years we will be introducing another 2 different types of bikes,
Road bike, & youth bike. Each of the 2 bikes will have its own strategy. Our road bike product strategy will be based on high pricing, lower volume and that for the reason Road bike segment are not sensitive to price as other segments some will pay up to 2500$ for the right bike, all what customers care about in this segment is the Quality of the bike. We will not be focusing too much on advertising since this segment focus more on the advice of a sales assistance, word of mouth & Friends past experience. The youth bike segment product strategy will be based on low price, higher volume.
Product has to be durable, but also relatively inexpensive while having the best image on the block. Youth Bike segment is very large, the demand tort a product is determined by many doctors in addition to the product attributes. These also include a focus on Advertising and distribution. All we want to make sure is that we are not lagging extremely behind in any sector, but at the same time not spread our money out in too many sectors without a focus. While maintaining a small balance, we will spend the majority of our funds in a sector such quality, so that we know that we have a great competitive edge in one rear.
Market is separated into the three sections. The low cost Youth Bike, mid-range Mountain Bike and the high end Road bikes. Due to the very competitive market, government is regulating and prohibiting competition from other countries. Only local manufactures are able to produce, at the beginning Just Mountain Bike segment, later on the rest two also. Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as ell as taking sales from competitors.
Every segment has different expectations most important things are design or style and technical specification. All products are sensitive because of life cycle and therefore needs to be modified through the years. Demand for the product is determined by many factors, like pricing, quality, advertising and distribution. Consumers are able to choose to buy from three categories of retailers. Bike shops, sports stores and discount stores. Proportion is different for every bike. Every retailer is different with some specifications. Everything has to be combine, all the customers, retailers but also production needs.
The better we could deal with this problem, the more successful the MAP bikes could be. Distribution is specific because the number of channels will decide to stock the products or not. It depends on the retail price, margin, unit sales history and also extra support. Media are also playing very crucial role. There are 3 basic choices to advertising a product and public relations campaigns. There are television, internet and magazines. Advertising is about raising product awareness level by running advertising campaigns. Every kind of advertising is sensible on different things.
More money we are able to afford more multiple media are reach effectively. In the case of public relations, some products are more sensitive and some less. It also very important step to brand advertising. Having high brand awareness makes consumers more aware of company and more likely to buy their product. Maintaining a constant expand of branding is important in a process of gaining a loyal customer.
SWOt Strengths
- Ability to maintain the middle route creating a well known international brand.
- Predict and utilize different advertising tools to create good product awareness.
- Very efficient Witt our product output. forecast sales extremely accurately
- Producing high products on an affordable level – we are revolve around making sure we are not lagging behind in any major sector of our business so that other firms would be able to take advantage of us.
Weakness
- very high expenses on advertising and promotion, distribution
- quality – Limited budgets
Opportunities
- opportunities lie within the branding bracket – continue to create a brand that is well known for quality and price.
- continue to grow rapidly as a competitive force within the cycling industry.
Following the best distribution channels for every bike. Following the safe side trying our best for not putting any debts, so we keep in control of our expenses for a certain point.
Threats
- threats come from our main competitors.
- must continue to compete with the firms in price, quality ; distribution.
Vision: Map bikes are dedicated to providing quality products and services to our valued customers at affordable prices.
Provide quality and affordable products, Put customers first, Increase profits, map bikes is a manufacturer committed to make FUN affordable for everyone. We are omitted to not only the sport of cycling, but the Joy that a long ride bike can bring. We spark healthy living family bonds in our community by having the most affordable prices and ensuring top-notch customer satisfaction. We make certain that everyone who buys one of our cycles also receives a basic safety guide. Above all else we here at map bikes believe in good, clean active fun.
The critical issues that it faces are: The need to take a conservative approach to expansion. Expansion must not occur for the sake of growth in itself, but should occur because the customers will be better served. Continue to build brand awareness, driving customers to Map Bikes. Maintain good relationships with suppliers. Goals ; objectives Goals are the milestones by which achievement of the purpose statement are measured. The Goals also represent the vision for the company system in the future. In order to implement the purpose of the Map Bikes Plan, the following goals are/will be established.
Promotional campaign: MAP Bikes will be visible at the two major industry trade shows. 5% of the retail icicle shops attend at least one trade show a year. The shows provide retailers an opportunity to view upcoming products and chat Witt representatives trot the companies as well place pre-season orders. This campaign will also encourage retailers to stock and promote our bikes. We will provide them a small percentage of profit for that. Extra support is useful to achieve short term boost in distribution coverage as our product is new in market. We are offering discounts, brochures, trials to attract customers. Target market Bikes are such kind of transport system that can be used by all kind of people. E got different kinds of bikes. In 1st year we are only focusing on mountain bikes. After 2 or 3 years of our company we are going to launch bikes in the market such as, Road bikes and Youth bikes. We have different target markets for these different kinds of bikes. Mountain bikes: For this kind of bikes target market would be people who are young, focus on fitness and in tutoring. People who want to go anywhere and everywhere and then come back. People who prefer luxury features in favor of a sturdy, high performance bike.
Road bikes: People who view cycling as a competitive activity would be the target market for the dad bikes. They prefer the bike with light, fast and technically at the leading edge. Youth bikes: We are targeting a large section of people for youth bikes. Because the average youth bike will go through 2. 1 between the age of 4 to 15. Usually parents will be buying youth bikes for their children. They prefer bikes with durability, inexpensive with best image on the block for their children. Segmentation Strategy: Customers in bicycle market can choose to purchase at one of 3 categories of retailers.
Bike shops: The bike shop is a specialty store dedicated to bikes and bike-related products. Store assistants are trained bike specialist, able to tailor specific bikes to specific customers. Bikes shops generally stock bikes in the mid to high price range and bikes they stock in common with the discount stores are often priced slightly higher than in the discount stores. Bikes shop rely on their higher margin to gain a profit so are less likely to discount their stock. 20% of our Mountain bikes, 90% of our Road bikes and to our Youth Sport stores: n bikes will EAI bike shops.
They stock a wide range of sporting equipment, including bikes that have been designed for active, outdoors people. The staffs at these stores don’t know much bout individual bikes or technical aspects but they are knowledgeable about the purpose for which the bikes will be used. They tend to sell the bikes at higher price than the discount stores. 60% of our Mountain bikes,10% of our Road bikes and Youth bikes will be in sport stores. Discount stores: Discount stores are the chain retailers who stock a wide range of goods, from electronics to kitchenware. Account stores offer little support to bike manufacturers, don’t have sales people who are bike expert to give the customers information about the bikes but they have the largest customer base and focus on quantity. They typically stock a wide range of low to mid-priced In the 1st year of our company we are launching only one product that is Mountain bike. Gradually in year 3 of our company we will bring 2 new bikes in the market . Those are Youth bike and Road bike. We got complete freedom to manage our bikes, stocking competing brands side by side. 20% of our Mountain bikes and 80% of our Youth bikes will be at discount stores.
We are not going to display any Road bikes at discount stores because it’s a bit expensive one. Marketing mix: Product: 3 different bikes and also have 3 different strategies for our products. Such as, High price low volume In this section we will increase our product price up to 10% and promotion expenditure by $500000-$1000000. Medium price, medium volume Our price will be a little less by 1% in this section and we will increase our product promotion expenditure by $250000-$500000. Low price, higher volume Our product price will be decrease by 5% in this section and promotion expenditure will increase by $0-$250000.
Mountain bike has good potential if customer’s preferences are met. Road bike’s customers know what they actually need and w a they want. Youth bike has the most durability and the best look on the block. Promotion: There are 3 types of promotion we are going to use for our bikes. Product advertising: The aim of product advertising is to raise the product awareness level of a product within a particular segment by running an advertising campaign using the media option. Affectively of the advertisement will depend on our budget.
If we have that much affordability at that very moment we will go for a comprehensive campaign. And if we don’t have then we will do the small one. Public relation: Some market segments are very sensitive to the PR image of the products while others are less so. He aim of product PR spending is to raise the PR image level of a product with a particular segment by running a PR campaign using media. Corporate brand advertising: The investment to create a company’s public awareness is called corporate brand advertising. High brand awareness make customer aware about the company and more receptive to product advertisement.
Maintaining a constant level of branding expenditure will slowly improve brand awareness overtime and will also increase individual product awareness. We have chosen 3 different media for this promotional activity of our company: Television: The most effective method of reaching a large audience. It is the reflection of the fact that virtually every household has a television and that over 85% of all people watch television at least once a day. Adult bike riders tend to lead physically active lives, which lead them to have less time for television watching than the younger customer.
TV advertising is expensive. It will cover 50% of mountain bikes, 10% of Road bike’s and 80% of Youth bike’s market segment. Internet: The internet can reach a relatively large mass audience with a single exposure and at a relatively low cost. It attract younger to middle get audience. T is also involve in developing company’s web site, pay per click advertising on popular bike review sites, sponsored ad words on major search engines etc. Internet will cover 10% of Mountain bikes and 10% of Road bike’s market segment. For Youth bikes, internet is not applicable for market segmentation.
