Marketplace Simulation: Effective Marketing Plan for Biking Industry

Marketplace Simulation: Marketing Plan Braelyn Ayala, Callaghan Swift, Delaney Richardson, Liliana Piercey Colangelo College of Business, Grand Canyon University MKT-450: Marketing Management Ashlie Roeder February 11, 2024 1

Executive Summary- (Delaney) In this marketing plan, there will be many different components discussed which will cover strategies for our company to be successful in the biking market. Creating a market plan can be very important for the company to get the plan started. Marketing plans can help companies seek opportunities and reach their goals financially. In this market plan we will cover the financial and market performances from previous years, the current situation and the market, the marketing strategy for the future, the project demand quarter table, and the tactical plan. Identifying these parts will help assess any problems and solve them. Customer feedback, competition, historic problems, strengths, and improvements will be analyzed. This assessment will help to decide on pricing, branding, advertising, and strategies. Review of Financial and Market Performance During Previous Year (Callaghan) For quarters one and two there are zeros listed for everything but market research in quarter one, in which we spent $64,100. Engineering cost for new brands were $90,000 in quarter 2. In quarter three we grossed $107,316, but due to our operating expenses being $254,057, we netted -$146,741. In quarter four, despite our gross profit rising to $253,000, our expenses also rose $281,520, leading us to net -$392,075 for that quarter. Overall, for the previous year we netted -$1,167,916. We had 38% of the market at the end of quarter four, beating out our competitors. Currently we are the only company that offers speed bikes, and thus we have 100% of the speed bike market and the youth bike market. Despite our work bikes being our top sellers, we only own 12% of that market, likewise we own the second largest portion of the recreation bike market at 35%. 1

Assessment of Current Situation and the Market- (Brae) In terms of customers, the company focuses on building brands for working adults, adults in recreation, and bikes for children’s enjoyment and exercise. The Work Bike and Work Bike 2 introduces the first bikes of the brand which specializes in comfortability and duration for the working adult. The Child Bike allows children to be safe and ride with fun in mind. Competition falls in other work and recreation-based bikes including EcoVelo Excel and ComfortPlus+. All competition is in New York City. Portland has little to no competition with Precision Ride Innovations. The strength of the company is that they are the only company in Portland which makes competition nonexistent. Other strengths include the company being in cities that have a large amount of biking commuters. Weaknesses include the ability to advertise to increase revenue and the lack of specialized salespersons. Major problems to be addressed in the following year include lack of detail in brand names and lack of salespeople. Opportunities could include opening new store locations, breaking into internet marketing channels, and changing the prices of bikes to increase profit. Customers Working adults, adults interested in recreation, children in recreation. Prioritizing children and adult safety, comfortability, and durability. Competition Portland - none 2

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New York City - work and recreation- based bikes including brands EcoVelo Excel and ComfortPlus+ Company Strengths/Weaknesses Strengths - Only company in Portland, location promotes bikers Weaknesses - Ability to advertise to increase revenue Lack of specialized salespeople Problems/Opportunities Problems - Lack of detailed brand name, lack of salespeople Opportunities - New store locations, adding internet marketing channels, increasing bike prices Marketing Strategy for the Next Year in the Business (What will it take to get ahead or stay ahead?) (Lili) For each bike going into quarter 5, we can adjust our marketing strategies. To start for the Work Bike, we should offer reasonable prices to draw in budget- conscious commuters. In cities like New York, we can place advertisements that highlight dependability and usefulness. For the children’s bike we can use a premium pricing approach that takes durability and safety elements into account. As far as advertisements we could put an emphasis on in-store exhibits. Lastly for the Fast Bike, expensive price that reflects 3

characteristics with great performance. We should also pay attention to events and specialist bike stores that appeal to bike aficionados. Pro Forma Financial Projections (Excel spreadsheet for Quarters 1-8) (Callaghan) Projected demand per quarter (Q4) Brand Previous Demand Projected Demand Selling Price Work Bike 282 0 500 Child bike 105 0 500 Fast Bike 192 0 800 Work Bike 2 0 0 550 Projected demand per quarter (Q5) Brand Previous Demand Projected Demand Selling Price Work Bike 449 500 0 Child bike 207 250 0 4

Fast Bike 358 400 0 Work Bike 2 119 250 0 From Q3 to Q4 we saw an increase of more than a 55% in demand for our Work Bike, more than a 95% increase in demand for our Child Bike, more than an 85% increase in demand for our Fast Bike, and almost a 200% increase in demand for our Work Bike 2. It is likely that demand for these bikes is going to continue to move up as word of our company and services continues to spread. Tactical Plan (Quarters 1-8) The tactical plan should articulate what is planned for each quarter. For example, Q6- open three offices, Paris, London, and New York. Each office will staff five employees, one service and four sales personnel, with two sales staff for priority 1 and 2 target markets, at a determined cost. The reader should then be able to see the cost entry on the pro forma. Every planned expenditure shown on the pro forma should include an explanation on the tactical plan. Revenue should reflect the projected number of units, price of each, and the cost of goods sold. 5

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CLC - Marketplace Simulation_ Marketing Plan (1)

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