Bike Simulation Report (mkt PDF

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group report assignment...

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Bike Simulation Report Team-4 Group Member’s: Patel, Naisha Oshimoto, Yuka Petron, Jacob Takahashi, Shintaro

Teacher: Wang, Myra Course: Marketing 220 Section-2

Date: May 10, 2020

Table of Contents 1. Company Performance for the Entire Simulation 1 2. Decision Criteria 6 3. Summary 8

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Company Performance for the Entire Simulation

Market Share Quarter:3 At the moment, there are only two companies, FASTEST and Pegasus, that made bikes in speed segment, so these two companies occupy the top marketing area in the speed segment. Quarter: 5&6 You can see Market Share for each company in speed segment. There is a more competition in the speed segment. From the top, Mountain Revolution Bikes, Pegasus, St. Cloud Cycle in speed segment. As a result, in the total, these three teams also occupy the top three lank. From Quarter5, A and B decrease their marketing share in speed segment, as a result, their overall marketing share fell. Market Share – Speed segment Company Name FASTEST

Pegasus

Mountain Revolution Bikes

Rocky Road Bikes

Quarter 2

Quarter 3

Quarter 4

Quarter 5

Quarter 6

Speed5 2.9%Tot al 16.7% Speed 47.1% Total 14.6% Mountai n 82.3% Total 33.4%

Speed5 2.9% Total16. 7% Speed4 7.1% Total14. 6% Mountai n 82.3% Total 33.4%

Speed 5.3% Total 4.3% Speed2 8.7% total 20.9% Speed 26.7% Total 40.9%

Speed 5% Total 5%

Mountai n 17.7%

Mountai n 17.7%

Speed 0.0%

Speed 0.0%

Marketing 220 Section-2

Speed3 2% total 22% Speed 35% Total 44%

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Total 5.4% Recreati on 56.5% Total 29.9%

St. Cloud Cycles

Total 5.4% Recreati on 56.5% Total 29.9%

Total 5.1% Speed 39.3% Total 28.8%

Total 3% Speed 28% Total 26%

Brand Judgement Quarter: 2&3 In the first quarter, there are few companies that make bikes in speed segment, it ranks high and has a high bland evaluation. Quarter: 5 Take a look at how many brands are there on the market? In the speed segment, there are four companies with over 80% brand judgment. Quarter: 6 Olympia, a Pegasus bike, took the top spot by rapidly increasing its brand rating from the quarter 5. The top three companies are above 95%. Brand Judgement– Speed segment Company Name PegasusPegasus Bikes

Quarter 2

FASTESTFASTEST

Speed6 4

FASTESTSpecialized

Quarter 3

Quarter 4

Quarter 5

Quarter 6

Speed6 4

Speed6 4

Speed6 4

Speed6 4

Speed5 4

Speed 54

Speed5 4

Speed5 4

Speed7 9

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PegasusOlympia

Speed7 6

Speed7 Speed8 Speed9 6 2 6

PegasusAngel Wings

Speed6 1

Speed7 9

Speed7 9

St. Cloud Cycles-The Speedster St. Cloud CyclesSuper Speedster Mountain Revolution Bikes-Race Master PegasusPersus St. Cloud State-S Speedster mk2 Mountain Revolution Bikes-Race Master+ St Cloud StateSpeedster mk2

Speed7 9

Speed 65

Speed 65

Speed 65

Speed7 0

Speed7 5 Speed9 5

Speed7 5 Speed9 5

Speed7 5

Speed8 Speed9 3 5 Speed 80

Speed 80

Ad Judgement Quarter: 2 Since only two companies make bikes with speed segment, inevitably the two companies will be the top, but both are around 50%, which shows that the advertisement evaluation is low. Quarter: 4

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The top three companies are all rated 70%. Companies that did not make speed segment bikes in Quarter 3 made it in Quarter4 and those companies make better advertisement.

Quarter: 5&6 Almost all companies keep improving the product and advertisement. The advertisement rating of Mountain revolution bike is by far the highest, 99%. Also, all companies are over 60%. Ad Judgement– Speed segment Company Name PegasusFind Adventure!

Quarter 2

Quarter 3

Speed5 2

Speed5 1

FASTESTFASTEST

Speed4 2

FASTEST Specialized

Quarter 4

Quarter 5

Quarter 6

Speed4 2

Speed6 4

Speed6 4

Speed6 4

Speed6 1

Speed6 1

Speed6 1

Speed6 1

Mountain Revolution BikesRacing Bike St. Cloud CyclesSuper Speedster PegasusAngel Wings St. Cloud Cycles-The Speedster Marketing 220 Section-2

Speed7 Speed7 Speed7 3 3 3

Speed7 Speed7 2 2

Speed7 6

Speed7 Speed7 0 0

Speed7 0

Speed6 8

Speed6 6

Speed6 5

5

PegasusOlympia PegasusPersus Mountain Revolution Bikes-Race Master+

Speed6 5 Speed5 1

Speed8 Speed7 2 7 Speed6 1 Speed9 Speed9 9 9

Decision Criteria

A. Brand Management: Originally we wanted a catchy name that would be easy to remember if someone were to mention it, or if you just got a quick glance at it, and we wanted it to translate well to other countries, so we settled on FASTER, we liked it because it was just one word and would look good printed on the frame of the bike. Obviously our first bike needed to be fast, so we made a racing bike, then an even faster racing bike after that. Then we noticed the opportunity to create a recreational bike because almost none of our competitors had one in the market. We wanted to diversify from being just a speed bike company. We learned that it was smart to kind of change our branding a little. Finally, we finished with a mountain bike to round out our company, and we found out that it was good for us to expand what our company made and were competitive with the other companies. B. Pricing: Our first bike was a speed bike and initially we thought that we priced the bike correctly, but the market told us otherwise and that it was actually underpriced by about $400 so after we adjusted it and saw good results in sales. We learned that speed bikes are the highest

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priced and that they range over $1000. Our other bikes we liked the launch prices, we thought that each bike type should have its own price range and that is how the prices were picked. As for rebates, we knew that not every customer would claim theirs, so we tried to set it around 5% to 10% to help us get good relations with our buyers but didn’t want it to high that we would lose a lot of money on it. We learned that customer relations are important and that is why we offered a rebate so maybe some customers would chop with us again

C. Advertisement: Our advertisement was always different for each bike, if one bike was a mountain bike, we would do a photo of the bike going up a mountain and say “the smoothest ride yet” and “conquer your mountain”, and we would do the same for speed and recreation bikes. We found that it works well if you match up advertising with the details of the bike, but that’s kind of obvious. We tried to promote the bikes differently in each city, for example in New York City there is no mountains, so we did not promote the mountain bike their as much. We saw that, that was working quite well and continued it. D. Channels: We tried to open as many stores as we could to extend our global reach and number of possible customers as much as we could. And tried to keep our sales staff small but good, more of a quality over quantity viewpoint. We found that this works well and saw good results from it. We thought that a specialized sales team would work the best, but we also focused on service, we wanted to have good service to help build up a good customer relationship.

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Summary

From this simulation, we could learn the essence of doing business through marketing strategies. Also, the knowledge we got from this simulation can be used after coming to society. As a tool, each section was divided into six parts; Brand Management, Pricing, Advertising, Channels. And some tips to create the product better in each section in this simulation. Therefore, it was clear what should we had to do, and we were able to work the simulation smoothly throughout this assignment. In addition, this simulation started with making the company’s name as the first task and we considered what kind of bikes we would sell. Moreover, even how to make an advertisement could be considered. From these aspects, we could experience our business development in detail, and we also were able to find some parts that we lacked in our ability to run a business. Furthermore, we could see the results of the other groups in each section. These inspired us to run our business and we were able to experience competing with other companies. Another point is that we were able to make use of what we learned in the class by simulation. University’s classes would provide us some valuable information or knowledge in general. However, it is a little difficult to practice what we learned at the same time even if the Marketing 220 Section-2

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practice is done in the application. Hence, we believed that this simulation will benefit our future economic activities like company management or work at any firm. The most important thing we have learned is teamwork. Obviously, any project is hard to succeed with one person. Particularly, this simulation could not be accomplished without the corporation of team members. We exchanged opinions and worked to make a great product through discussion. Certainly, these skills exert a positive impact on our future. Overall, people who have experience of this market simulation, open up their own future. Therefore, this simulation is a truly great educational tool from those perspectives.

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