T5_MARKETING PLAN Final

Running head: MARKETING PLAN 1 Marketing Plan Grand Canyon University MKT-607: Marketing Management October 25, 2023

Marketing Plan Executive Summary Carbon Crafter Bikes (“CCB”) stands as one of four leading carbon 3D printing companies specializing in carbon fiber bikes. Our product line includes five distinct bike types, catering to recreational, speed, rough terrain, and comfort riders. Our mission is to empower cyclists globally with innovative, sustainable, and performance-driven bicycles tailored to meet the diverse needs of our riders worldwide. The global bicycle market is experiencing a growth rate of approximately 3%, with North America and Europe showing promising signs of recovery from recent declines, offering our business significant growth opportunities. In our first 3 quarters, we have experienced consistent growth in assets and equity, increasing from $1,587,696 in Q2 to 2,400,653 in Q3. Given our steady increase and #1 industry ranking, CCB is seeking additional funding to invest in new technology, expand sales outlets, increase production capacity, and enhance system improvements. CCB presents an exciting investment opportunity in the thriving cycle industry. Our innovative, sustainable, and diverse product line, combined with initial solid sales performance, positions us for growth in North America, Europe, and beyond. Situational Analysis CCB operates within different internal and external factors that influence and determine how it performs in different market segments. The growth of the bicycle sportswear market has been boosted by an increase in the interest among individuals in bicycle events as they focus on participating in sports and leisure activities. The three inter-related environments in which CCB operates are the industry, the geographic market, and the country. PESTEL analysis assesses the brand, making it easier for the business to understand the environment that it operates in. Political factors play an important role as the company needs to understand the political aspects 2

Marketing Plan placing commercially significant news in mass media as a way of mass communication about the products offered by the company. Through public relations, the company has been able to maintain constructive relations with different parties inside and outside the business. Integrated marketing communications have made it possible for a company to create a multi-pronged campaign in the market targeting a wider audience (Simplilearn, 2022). Through communications, the business has been able to know the right channels that will target the right audience with the right message. SWOT Analysis A SWOT analysis is a globally recognized tool to identify within the organization the strengths, weaknesses, opportunities, and threats on the path to success. The fallacy is focusing on strengths and weaknesses first – by altering our mindset, we can conduct a much more substantial analysis by looking at opportunities and threats first (Minsky & Aron, 2021). To conduct the CCB SWOT analysis, we will first analyze the environmental factors (threats and opportunities) and then explore our internal strengths and weaknesses. The opportunities within the global carbon fiber bike market are clear. The market is rapidly expanding, as evidenced by the market size. In 2022, the carbon fiber bike market size was USD 3.01 billion, estimated to be USD 3.24 billion in 2023. It is projected to grow at a CAGR of 7.69% to hit USD 5.45 billion by 2030 (Research and Markets, 2023). Currently, CCB is a small fish in a huge pond, but growth quarter over quarter has shown there is plenty of market share to be had. There is an opportunity to expand beyond our four locations. Additionally, our speed series has performed beyond expectations. This leaves room for more models with enhanced features. We also have room for massive growth in both recreation and 4

Marketing Plan mountain bikes – thus far, our focus has been on speed, but a new campaign has the chance to bring more attention to our other offerings. The threats to future profitability are numerous. The most significant barrier to entry is the cost of carbon fiber bikes. Carbon fiber bikes have exploded in the past decade, but the cost is still high for many casual riders. Carbon fiber is expensive due to the complicated fabrication process. Building a carbon fiber bike requires more mechanical and chemical processes, so there are more material and labor costs. The process of producing carbon fiber alone is time- consuming, with multiple steps, something not required for aluminum bike frames (Lindsey, 2022). Another threat is more and more competitors. While a few brands are solely focused on racing and high-end bikes, more and more are entering the recreational market with similarly priced bikes. Being relatively new to the market, CCB has to fight harder as we lack the brand recognition of competitors such as Cannondale, Trek, Kona, and Specialized. We also face some internal threats due to production volume, weak frames, and limited sales of our mountain bike line. We need to examine our internal strengths and weaknesses to combat any external threats. First, we focus on our strengths. CCB has achieved great success with our speed bike line. This was a bit unexpected as the market skewed towards recreation, but we pivoted and leaned into this line. We also have powerful marketing and accounting departments. CCB’s cash flow is strong, and marketing capitalizes on our successes. Because we have a surplus of funds, we can funnel more into R&D and bring even more bikes to market. This will allow for greater distribution and a larger footprint. Our corporate structure has also allowed each department to flourish, and leadership aligns with CCB’s goals. 5

Marketing Plan the broader community, the company can build trust, enhance its reputation, and foster customer loyalty. The mission and values reflected by CCB reflect a commitment beyond profit, indicating a solid alignment between conscious capitalism and the Christian worldview. By embracing CSR and these principles, the board of directors’ approach serves the company’s financial interests. It fulfills its moral and ethical obligations, ultimately contributing to a more just and sustainable world. Financial and Market Performance As CCB acclimated to the market, there were growing pains in our production division and lost opportunities due to unforeseen demand. In Q3, these issues were rectified and production exceeded demand ensuring that demand would be met. In terms of Market performance on a cumulative basis through Q3, CCB sits at the top of most categories. Most notably total market performance and financial performance. In each of these categories, CCB was able to double market performance with a total market performance rating of 2.648 compared to a market average of .983. In regards to financial performance, CCB achieved a cumulative rating of 22.182 compared to the market average of 11.106. Attached for reference is a copy of the most recent market report as well as our income statement and proforma for Q4. With a stable market outlook and a better understanding of the market, we will take the opportunity heavily reinvest into the company in preparation for increased production. Despite negative GOP projections for Q4, CCB fully intends to show significant profits for future quarters. 7

Marketing Plan Cumulative Results for Quarter 3 Indicator Minimu m Maximu m Averag e CCB Cumulative Total Performance 0.000 2.648 0.983 2.648 Cumulative Financial Performance -0.084 22.182 11.106 22.18 2 Cumulative Market Performance 0.172 0.281 0.218 0.281 Cumulative Marketing Effectiveness 0.629 0.740 0.697 0.740 Cumulative Investment in Future 4.841 13.169 7.403 5.022 Cumulative Wealth 0.570 0.960 0.813 0.960 Cumulative Human Resource Management 0.648 0.675 0.659 0.648 Cumulative Asset Management 0.251 0.488 0.354 0.488 Cumulative Manufacturing Productivity 0.460 0.713 0.612 0.615 Cumulative Financial Risk 1.000 1.000 1.000 1.000 Cumulative Reputation 0.609 0.635 0.618 0.613 Pro Forma Income Statement Report Item Quarter 1 Quarter 2 Quarter 3 Quarter 4 Gross Profit Revenues 0 494,365 1,618,935 3,639,475 - Rebates 0 4,375 15,100 35,625 - Cost of Goods Sold 0 199,381 503,174 1,151,086 = Gross Profit 0 290,609 1,100,661 2,452,764 Expenses Research and Development 90,000 0 60,000 884,178 + Quality Costs 0 46,811 75,002 92,107 + System Improvement Costs 0 5,000 100,000 959,013 + Advertising 0 94,000 126,000 182,500 + Internet Marketing Expenses 0 3,000 4,000 39,000 + Sales Force Expense 0 41,643 100,540 228,714 + Store Expense 136,000 244,000 190,000 209,000 + Marketing Research 0 15,000 15,000 15,000 + Shipping 0 5,829 16,654 34,568 + Excess Capacity Cost 0 0 50,509 1,986 + Depreciation 0 30,000 50,000 80,000 = Total Expenses 226,000 485,283 787,705 2,726,066 Operating Profit -226,000 -194,674 312,957 -273,302 8

Marketing Plan References Kenton, W. (n.d.). Conscious capitalism: Definition, 4 principles, company examples. Investopedia. https://www.investopedia.com/terms/c/conscious-capitalism.asp Lindsey, J. (2022). 11 Things You Didn’t Know About Carbon Fiber. Bicycling. https://www.bicycling.com/bikes-gear/g20029412/the-10-things-you-didnt-know-about- carbon-fiber/ Minsky, L. & Aron, D. (2021). Are You Doing the SWOT Analysis Backwards? Harvard Business Review . https://hbr.org/2021/02/are-you-doing-the-swot-analysis-backwards Research and Markets. (2023). Global Carbon Fiber Bike Market 2023-2030: Carbon Fiber Bike Market Thrives - Road Bikes Lead with 49.68% Market Share. Globe Newswire. https://www.globenewswire.com/news-release/2023/08/29/2733187/0/en/Global-Carbon- Fiber-Bike-Market-2023-2030-Carbon-Fiber-Bike-Market-Thrives-Road-Bikes-Lead- with-49-68-Market-Share.html Simplilearn. (2022, July 12). What makes integrated marketing communications important? Simplilearn.com. https://www.simplilearn.com/what-makes-integrated-marketing- communications-important-article Sujan. (2023, August 18). 5 essential components of the promotion mix (Made easy). tyonote. https://tyonote.com/components_of_promotion_mix/ 10