Road Runner

Running head: ROAD RUNNER 1 Road Runner Vitali Yanchev

ROAD RUNNER 2 Contents Introduction .......................................................................................................................... 4 Main Body ........................................................................................................................... 5 Marketing Strategy .......................................................................................................... 5 Quarterly Decisions ......................................................................................................... 5 Competitors ...................................................................................................................... 9 Brands' Performance ........................................................................................................ 9 Marketing Mix ............................................................................................................... 10 Financial Outcomes ....................................................................................................... 10 Pricing Strategies ........................................................................................................... 10 Evaluations & Recommendations ...................................................................................... 11 Lessons Learned ................................................................................................................. 11 References .......................................................................................................................... 12 Appendix ............................................................................................................................ 13 Quarters 1 and 2 ............................................................................................................. 13 Quarter 3 ........................................................................................................................ 14 Quarter 4 ........................................................................................................................ 15 Quarter 5 ........................................................................................................................ 16 Quarter 6 ........................................................................................................................ 18 Quarter 7 ........................................................................................................................ 19

ROAD RUNNER 4 Introduction This report's primary goal is to discuss my business, Road Runner. As part of my business administration class’s Marketplace bike simulation assignment, I came up with Road Runner. In this report, I will go over how my business generally performed for each quarter, explain why I changed any of my business's policies or goods, and lastly, go over how my business did overall. In order to complete the Marketplace simulation project, I had to establish a business that could use 3D printing to offer three different types of carbon fiber bikes. Recreational, mountain, and speed bikes comprise the three categories. I was responsible for developing the designs for my items, marketing, and setting the prices for each item. In addition, I had to employ sales and service personnel and build additional stores in four separate locations. Ultimately, I wanted to ensure that my company had a favorable total return on revenue. I employed a range of marketing ideas across all quarters. Business In Action's chapter one, page four, discusses the significance of businesses looking for a competitive edge. This lesson was put into practice when I used the selling idea to determine how to price my items based on those established by my rivals throughout each quarter. On page 14, the chapter describes how consumers profit from better products and more options (Bovee and Thill, 2016). In quarter four, I put this textual lesson into practice by producing many products to guarantee that I would use the production and marketing ideas to attract more customers. In order to exhibit and emphasis the premium design of my items, I had to construct a range of advertising campaigns. It was crucial for me to provide my clients with more items to keep them from switching to my rivals.

ROAD RUNNER 5 Main Body Marketing Strategy A marketing strategy is a scheme for publicizing and selling a good. My marketing plan called for me to design a bike that would be appealing and simple to sell. After considering the need for a specific bike, I choose to focus on the leisure bike. I decided to design an economical, comfortable bike and focus sales efforts on Bangalore. My company is Road Runner, and I have done an excellent advertising job. I also completed some studies on how frequently people in Bangalore walk. People who value social connection and are looking for fun and light exercise frequently go on short trips with friends and family make up the recreation sector. These clients place a higher value on comfort and usability than more dedicated bike riders. The majority of bicycles made for this market group combine commuter and mountain bike features, and they must be tough enough to withstand mild terrain like bike paths. They should also be able to sometimes move little objects like picnic meals, light packages, and groceries. Given that my business caters to all the requirements of this recreational market, providing a fun and comfortable ride, it was an ideal fit for this market segment. Quarterly Decisions The segment desires a mountain bike that is capable of handling off-road routes. Customers in this market use bicycles for sports, fitness, and adventure, and relish the challenge of riding on rough terrain. They take pride in their abilities, and often seek out the adrenaline rush that comes from climbing steep hills, descending fast, and exploring the countryside. Engaging in rigorous exercise is highly desirable for them. After looking at the results of the second quarter, I opened a second store in Amsterdam after deciding to concentrate more on the speed and leisure bikes because they were the ones that

ROAD RUNNER 7 compared to other brands, I am putting the 14-speed gears on my comfort rider bike. The only things that separated us were that I had suspension and they did not and that I had a 7-speed gear and they had a 14-speed. In the recreational bike industry, suspension appears far more significant to customers than 7 vs 14-speed ratios. I am hoping that this will improve my judgement. To try to move ahead of others, I decided to add a second, less expensive leisure bike. They are my biggest rivals in recreation. Given that it will be less expensive and have fewer features than comfort riders, I named it Value Rider. It now has a 7-speed gear. I will have a cheaper 7-speed bike and a 14-speed bike option. Given the little price difference, I am still maintaining the polymer gel comfort seat. This bike was equipped with reflectors, colourful tiny brushstrokes, comfortable straight handlebars, and an attractive plastic basket since these accessories are all reasonably priced and greatly coveted by recreational consumers. Instead of the mountain or race tyres, hybrid and off-road tyres were selected since they made the most sense for recreational clients. Since leisure clients place a high value on safety and weight, I decided to install precise brakes. I chose not to add suspension since I did not want the cost to increase. In light of the modifications I have made to my second bike, I also need to determine by the end of the following quarter if rec usage is crucial. My Value Rider bike's pricing is now 650, and the refund is 80, which is marginally better. Rio de Janeiro is one of the most affordable cities, so I decided to create a store there in the hopes that it would increase sales. Since I gained the capacity to do so this quarter, I decided to upgrade all three bikes in the fifth quarter. Because recreational cyclists are not interested in having more robust bikes, I maintained the conventional carbon fibre material for my comfort riders' bikes. Although it could be a lighter material, the price climbs dramatically (from 13 to 40), and money is more important

ROAD RUNNER 8 than lightness. I made the decision also to update my Speed Racers bike. Because it makes the bike lighter and more durable, I switched the carbon fibre material to Enriched - lighter and more substantial. Because recreational cyclists are not interested in having more robust bikes, I maintained the conventional carbon fibre material for my Value rider bike. Although it could be a lighter material, the price climbs dramatically (from 13 to 40), and money is more important than lightness. I switched to Hybrid Cushion tyres since they increase riding comfort without significantly increasing cost. In order to reduce saturation, I increased the number of staff I had in each city in the sixth quarter. I did not modify brands in the seventh and eighth quarters since I have the best brand judgement across all categories. Because my financial analysis is substantially better than everyone else's, I decided against creating a new brand. In order to compete with other manufacturers who advertise their mountain bike costs at 1050, I increased the price of my Hard Climber bike to 1045 while maintaining the rebate. Given that my Speed and both rec bikes had considerably higher ratings than any of the other brands in their categories, I maintained the pricing and rebated the same as they were before. With my refunds and better pricing than my competitors, my prices received an overall grade of 100. I was pleased with them all. My advertising is perhaps my most significant problem or area for improvement. They were

ROAD RUNNER 10 there. Social media and online marketing are our main priorities. In the most recent quarter, the marketing's success has been demonstrated. Although not ideal, the numbers have gradually begun to rise. Marketing Mix Road Runner, the four Ps form the foundation of the marketing mix. All four P's are present in the bicycles created for each new store that opened in two distinct regions. The company's sales are a reflection of its affordable costs. In order to reach a consumer base that is not in the top pay grade bracket, Road Runner chose to place their rates in the middle of the national market. There will be more prospective consumers as a result. The Road Runner carefully considered where the two locations should be to maximise sales of their low-cost bikes. Financial Outcomes In order to predict future sales statistics for Road Runner, a new company in the carbon fibre bike sector, projections based on market research and industry standards might be used. When predicted income and costs are taken into account, a cash flow calculation estimates the amount of money that Road Runner anticipates will flow into the company (receipts) and out of it (payments) (Richards, 2019). Additionally, Road Runner might forecast demand for the bikes now selling to anticipate the figures for the upcoming 12 months. Pricing Strategies The Road Runner process methods are based on the market-determined average price of carbon fibre bicycles. The prices established by the rivals range from the most costly, running for $1,260 plus giving a $50 refund, to the Road Runner bike, which sells for $1100 plus there is a $55 rebate provided.

ROAD RUNNER 11 Evaluations & Recommendations In this game, there are several factors to consider. The most crucial one was ensuring all expenditures were included in your price. I had much trouble with this in the first few quarters since I did not comprehend it. When I looked at my rivals' prices, advertisements, and locations, it began to make more sense. Minor errors I made cost me a lot of money. My advice is to examine every number, then make a chart using your gathered data. Once you have a comprehensive view of everything, you may select the best course of Action. Lessons Learned I discovered that you must be an expert to run a successful business. You cannot just enter a situation blind-sided and hope for the best. It takes a lot of commitment and labour to run a firm. The key is to take the time to reconsider your choices and learn from your errors. I benefited from the simulation because it taught me that becoming a successful businessperson takes hard work and dedication. I learned through the simulation that running a business has ups and downs, but producing an original product at a competitive price will make you highly successful. Playing this game taught me a crucial lesson: you should not just go in headfirst and believe you know what you are doing. You must thoroughly research and evaluate every situation. It was a simulation, but I think having a fantastic staff and soliciting feedback will make your firm successful in the real world.

ROAD RUNNER 13 Appendix Quarters 1 and 2

ROAD RUNNER 14 Quarter 3

ROAD RUNNER 16 Quarter 5

ROAD RUNNER 17

ROAD RUNNER 19 Quarter 7

ROAD RUNNER 20