MS Marketing Plan

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channels, 20% with bikes shops, 60% with Sports stores and 20% with discount stores divides the mountain bike’s distribution.

And the media in the same way, 40% with television, 30% Internet and 50% with magazines.

1.2 Microenvironment

The MS Bikes currently situation, presents a Shared Holder Value (SHV) of $10.82 dollars. The mountain bike’s price is $700 dollars. The media investments are divided between TV, Internet and magazines. The TV has a $300.000 dollars investment, the Internet has a $75.000 investment and with $375.000 dollars invested are the magazines. The investments on Public relations are $200.000 dollars on TV, $50.000 on internet and $250.000 on Magazines. Currently, MS bike’s PR has a rating of 0.09, the quality is 0.75, distribution with 0.38, delivery time with 1.00 and product specs with 0.60. The highest possible rating is 1.00.

The MS Bikes distribution uses 72 Bikes shops, 305 sport stores and 190 discount stores.

2. Swot Analysis

Strenghts:

- High start capital, due shareholders investments post government intervention.

- Design’s team already working in new possible bike designs that will be available in coming years ahead.

- 3 kinds of retail channels, which make products accessible to targets segments.

Weakness

- Incapability to produce and launch new bikes models for Youth and Road segments quickly.

- Limited resources to operate in Mountain bike segment.

Opportunities:

- Market with high discretionary income consumers, who will freely buy any bicycle that suits their individual needs.

- Government regulated the market and restrict the importing of bicycles and bicycles components from other countries, improving the local manufacturers production.

- Unexplored market for Road and Youth segments.

- Consumers dissatisfied with the existing products.

- Market covering different types of consumers.

Threats

- 4 Competitors starting at same point as our company.

- Government market’s regulations.

3. Mission Statement

Provide the best bike experience for our costumers, with high quality product and service, and for our investors to maximize our shared holder value.

4. Opportunity and Issue Analysis

MS Bikes has the opportunity to work in a market which customers are willing to pay more money to get good products. Keeping the quality of the bikes would be a good opportunity to keep the shareholder value up and aiming to increase profitability and market share. Also starting in the same position as the other competitors it will be possible to measure our growth and keep up the updates and adjustments on our strategy.

5. Goals and Objectives

MS bikes aims to reach at least $ 400 of the Shared Holder Value (SHV) and to become top brand among on mountain bike segment. Onwards it is also expecting the best performance and good feedback on mountain bike segments. It is also making the strategic decisions that will maximize expected value even of the expense of lowering near-term earnings. Another goal is to enhance the innovation and the brand on main bike events and to become top sponsors in most of the bike contests or racing. Afterwards using the famous sponsors or bikers to get reputation for our brands and advertising.

6. Marketing Strategies

6.1 Segmentation strategy and target market

MS Bikes targets for both male and female age between 20 and 35 years old. Approaches to the customers who prefer healthier lifestyle and gives priority on it. That means customers who prefer to use bikes instead of cars to go for work.

6.2 The marketing mix

PLACE: Shopping malls, gyms, events

PROMOTION: Tv ads, internet social media, billboards, sponsorship (famous people).

PRODUCT: Mountains Bikes

PRICE: Recommended price would be $700,00

The purpose of the information of the marketing mix is due to the market scenario to achieve the best results in sales and shareholder value of our company. For the mountain bike customer’s profile we intended to activate our brand in shopping malls, gyms and bike events to get a closer approach of our customers and maximize our awareness on Tv ads,internet, billboards and sponsor our brand with famous people related to the bike segment. We will also start our sales with a competitive market price to reach even more customers, allowing our brand to reach further opportunities in sales and retail assistance.

7. Action Plan

2014

Recommended Retail Price (currently $700): $770

Forecast Sales Units (currently 18,000): 21.000

Advertising Decisions

- TV (currently $300,000): $900.000

- Internet (currently $75,000): $850.0000

- Magazines (currently $375,000): $1.000.000

PR Decisions

- TV (currently $200,000): $200.000

- Newspaper (currently $50,000): $50.000

- Magazines (currently $250,000): $250.000

Production Decisions

Quantity of bikes to produce: 21.000

(Maximum 30,000 bikes)

2015

Recommended Retail Price: $770

Forecast