Benchmark- Marketplace Simulation

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Benchmark- Marketplace Simulation Maritza N Aguilar Colangelo College of Business, Grand Canyon University MKT-450: Marketing Management Eric Freeman February 4, 2024 1

Introduction Cycle Prints is a large international bicycle firm that has the licensed technology to create carbon bikes using 3-D printing. This allows the company to customize the bikes to the size, shape, and performance requirements of each customer. Throughout this paper, the topics that will be discussed include, the market strategies that Cycle Prints has tried, product positioning, recommended comprehensive marketing strategies, and the importance of brand equity and management. Report on Quarters 1-4 In Quarter 1 Cycle Prints hired me to be the Brand Manager. To gain comprehensive and relevant market information Cycle Prints spent $88,000 on market research. In Quarter 2 Cycle Prints was able to review the market research information and decided that the best market segments to serve were customers who use bicycles for work and recreation in New York and Amsterdam based on market potential and price willing to pay. Cycle Prints strategy for geographic market entry is to focus on the largest geographic markets, even if they are more expensive, and focus on geographic markets that are in the middle of the cost/size continuum. In Quarter 3, Cycle Prints designed the Commuter and the Vacationer bicycles to be sold on the market. The price for the Commuter is $825 and the Vacationer is $1,030. Then two different advertisements were created to showcase each bike, costing the company $12,000. The local media placement cost of the ads was $9,905. Two stores were opened, one in New York and one in Amsterdam costing Cycle Prints $476,000. Cycle Prints also hired a team of 14 sales and service people costing the company $116,557 in hiring and training costs. 2

In Quarter 4, Cycle Prints decided to add a new bike model and open a new store in Tokyo. The new bike will focus on having the top speed in the market and using innovative and new technologies to achieve the desired results. Cycle Prints was also able to review market share information on competitors and have 32% of the market. Product Positioning and Market Segmentation Cycle Prints has a total of three bikes, Commuter, Vacationer, and Racer. These bikes are positioned in the market based on the marketing mix. The product is bicycles with different models made based on customer needs. Prices are based on what consumers are willing to pay depending on what bicycle they are looking to purchase. The place where consumers will be able to see and purchase Cycle Prints bicycles would be in a brick and motor stores located in New York, Amsterdam, and soon Tokyo. They are also for sale on the Cycle Prints website. Promotion takes place on all major communication channels, posters, billboards, radio, TV, newspapers, city magazines, and websites. Comprehensive Marketing Strategies To continue success through the last four quarters there are a few strategies that can be employed to grow success. A marketing strategy for pricing could be to lower the prices to $100 cheaper than what they are right now. This would be encouraging to the customers who are hesitant to purchase due to price. The combined potential of 25,137 potential customers would be interested in purchasing a bicycle for their work and play needs but only sold 548 bicycles in two quarters (Cycle Prints is currently in the fourth quarter). Cycle Prints local placement of advertisements could be improved to help bolster sales. In comparison to the competition, our ad design is effective but could use some minor 3

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adjustments to receive an 85 or higher on the ad copy review. However, increasing ad placement by increasing ad spending from $10,000 to $15,000 will put the ad in front of more potential customers. Expanding the sales and service employee budget to $200,000 to be able to add more sales employees. Currently, Cycle Prints has 14 sales associates with a demand of 548. With the demand impact factor adding 7 more employees could add 334 to the demand making it 882 sales possible in the next quarter. Brand Equity and Management Brand equity is how the customers think of the name brand (Cycle Prints). Customers want to do business with a company that is well thought out and recognizable. It is important to succeed in the remaining quarters because having a good brand identity will help Cycle Prints gain loyal customers. Brand management is a marketing function that uses a variety of techniques to increase the perceived value of a product or brand. This is also a building block in receiving and keeping loyal customers. Cycle Prints needs to have good brand management to generate greater sales and long-term customers. Conclusion The first three-quarters of Cycle Prints have seen sustainable growth and have a great foundational reputation. Current market segments include individuals in New York and Amsterdam who are interested in the latest bike technologies to commute to work and for recreational uses. Some comprehensive marketing strategies that Cycle Prints needs to incorporate are price reduction, advertising placement, and increasing the workforce. 4

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