Mountain Bike Swot Analysis
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A mountain bike or mountain bicycle (abbreviated MTB or ATB (all terrain bicycle)) is a bicycle created and made for off-road cycling, including jumps, and traversing of rocks and washouts, and steep declines, on dirt trails, logging roads, and other unpaved environments — activities usually called mountain biking. These bicycles need to be able to withstand the stresses of off-road use with obstacles such as logs and rocks. Since the development of the sport in the 1970s many new subtypes of mountain biking have developed, such as cross-country biking, all-day endurance biking, Freeride-biking, downhill mountain biking, and a variety of track and slalom competitions. Each of these place different demands on the bike requiring different designs for optimal performance. MTB development has included an increase in gearing, up to 30 speeds, to facilitate both climbing and rapid descents.
Other developments include disc instead of cantilever or V-brakes. The mountain bikes of today are much faster, lighter, reliable, and way more expensive than the bikes of the past. SilveRide produces mountain bicycles and bicycle parts for all ages with a wide variety of tyre patterns to suit different needs. Among these styles are: slick street tires, street tires with a center ridge and outer tread, fully knobby, front-specific, rear-specific, and snow studded. Some tires can be specifically designed for use in certain weather (wet or dry) and terrain (hard, soft, muddy, etc) conditions. Other tire designs attempt to be all-around applicable. SilveRide also use disc instead of v-breaks.
SilveRide is a bicycle manufacture company. With the slogan “Conquer everything on the way” SilveRide wants to create a new definition for bicycle riders in our country. This marketing plan is consists of companies target market, market segmentation, 4p’s of marketing mix, sales forecast, Break-even analysis and the financial analysis of the companies assets and liabilities. As prices continue to rise, and people’s
discretionary income decreases, more and more people are attracted to finding good deals. This trend will allow SilveRide to generate sufficient business to reach and conquer profitability. The company will grow rapidly and take away market share from the more traditional bicycle companies.
The target customers of the company’s product are middle class and upper class people of the society. The product will be sold in the major cities of our country. Our marketing strategy is based on becoming the resource of choice for local bicycle users. We will provide products for the casual biker who enjoys occasional recreational activity, for kids of all ages, and for the high level of enthusiast.
As we are a new company, SilveRide’s first marketing objective will be to get information about our products and services out to our customers. Our second objective will be to develop strong brand name recognition and loyalty among these customers. Our third marketing objective will be to increase yearly sales by 5%.
Our marketing strategy is based on becoming the resource of choice for local bicycle users. We will provide products for the casual biker who enjoys occasional recreational activity, for kids of all ages, and for the high level of enthusiast. Our strategy is based on superior performance in the following areas: product selection, product quality, and customer service (including repairs and tune-ups).
The profile of the SilveRide customer consists of the following geographic, demographic, psychographic, and behavior factors:
1. Geographic Segmentation:
Our immediate geographic market is the Dhaka and Chittagong. The Population of Dhaka (2006 EST.) is 67, 24,976 and Chittagong is 3.9 million which is mostly dense city of our country. 2. Demographic Segmentation:
Our general target market is male and female age 6-35, but we have segmented our market into smaller and more identifiable groups: Fig: Age Segmentation 3. Psychographic Segmentation:
* Health and fitness is a priority
* Enjoys watching sporting events
* Competitive, and competes in sporting events
* Enjoys recreational activities
* Enjoys being outdoors and staying physically active
4. Behaviors Segmentation:
* Take pride in how they look and feel
* Regularly shop at sporting goods stores
* Enjoy reading the sports section of the newspaper
* Shop at high end retailers with higher quality merchandise
* Watch sports on TV and listen to sports radio
* Works out at local gym or health center
4P’s of Marketing Mix
When it comes to marketing mix, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence). The term marketing mix refers to the four major areas of decision making in the marketing process that are blended to obtain the results desired by the organization. The four elements of the marketing mix are sometimes referred to the four P’s of marketing. The marketing mix shapes the role of marketing within all types of organizations, both profit and nonprofit. Each element in the marketing mix—product, price, promotion, and place—consists of numerous sub-elements. Marketing managers make numerous decisions based on the various sub-elements of the marketing mix, all in an attempt to satisfy the needs and wants of consumers.
These four P’s are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. 1. Product Section
The first element in the marketing mix is the product. A product is any combination of goods and services offered to satisfy the needs and wants of consumers. SilveRide will sell five types of high quality and high performance bicycles:
1) Mountain Bikes, including front suspension, full suspension, and no suspension.
2) Hybrid bikes that perform on and off road, and
5) Youth bikes for kids 6 and older.
In addition, SilveRide will offer the following accessories: helmets, locks, clothing, shoes, racks, cycle computers, tires, tubes, wheels, saddles, gloves, hydration, lighting systems, pedals, pumps, tools and lubricants. In addition to these high quality products, SilveRide will provide excellent, personalized, fun, one-of-a-kind customer service including, proper bike fittings, instruction on safety and proper use, and repairs. Some of the bicycle can be folded for carring.
2. Price Section
The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer’s perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Product and service pricing is based on offering high value to our customers. The price range for tune-ups and repairs will vary accordingly, but the following is a list of price ranges for our bicycles: 1. Mountain Bikes- Tk. 8,000- 15,000.
2. Hybrid Bikes- Tk. 5,000- 7,500.
3. Youth Bikes- Tk. 2,500-5,000.
Promotion is the third element in the marketing mix. Promotion is a communication process that takes place between a business and its various publics. Publics are those individuals and organizations that have an interest in what the business produces and offers for sale. Thus, in order to be effective, businesses need to plan promotional activities with the communication process in mind. We will market our business using the following mediums: television, radio, and newspaper advertisements, business website, printed promotional materials, and promotional events. Our television and radio advertisements will be aired across the country. We will place newspaper advertisements in two of the local papers. Our website will be up and running by opening day. We will also utilize print advertisements such as fliers and post cards to promote special sales events.
And finally, we will sponsor bicycle rally, show and we will pay the entry fees and all the participants have to do is wear our SilveRide jersey and insignias. 4. Place
The fourth element of the marketing mix is place. Place refers to having the right product, in the right location, at the right time to be purchased by consumers. It can include any physical store as well as virtual stores on the Internet. The Population of Dhaka (2006 EST.)is 67,24,976 and Chittagong is 3.9 million which is mostly dense city of our country. So, all products will be distributed through the retail store in these two areas. All repairs and service will be provided at this location. However, we will create a website for our business that will allow users to contact the store and view our complete list of products and services.
* Biking is a simple, low-impact means of exercise, which people of all ages can enjoy. * Low tax and duty
* Sells a variety of high quality specialty bikes, namely mountain, hybrid, and children’s bicycles * Provides excellent customer service including: bike fittings, training and instruction on proper use, safety tips and repair * Sells a wide variety of bicycle accessories and parts
* Government support with law and legislation
* Prices are relatively high
* Challenges of the seasonality of the business
* Access to Capital
* Lack of brand awareness
* Political instability
* Increasing trend of active lifestyle
* Area is experiencing population growth
* Online bicycle sales as well as catalogue sales and service * Price pressure from mass merchants and large discount chains * Fluctuations in the economy that affect discretionary spending