MGMT 449: Strategic Marketing Management

Dr. Dixie Button

19 May 2019

Table of Contents Executive Summary 3 Description of Business and Industry 3 Corporate Marketing Strategy 3 Company's Objectives 3 History of Company 4 Industry Overview 4 Current Status and Prospects 4 SWOT Analysis 4 Market Opportunity Analysis 5 Market profile 5 Industry Trends 5 Marketing Plan and Sales Tactics 5 Geographical 6 Behavioral 6 Product Line 6 Discuss Branding and Brand Loyalty 6 Research and Development 7 Pricing 7 Promotion 7 Distribution 7 Financial Plan 7 Customer Profiles 8 Product Match to Customer Profiles 9 Price Sensitivity of Segments 9 Price Versus Performance Importance 9 Key Competitor Profiles 9 Competitor Strategies 10 Competitor's Strengths and Weaknesses 10 Competitor Future Actions 10

Tricky Trail Bikes is a company composed of a four-member executive team with the mission of, "Providing industry-leading bicycles and components at lower costs without sacrifice in quality." The executive team responsible for mission success is Mark Titler, Joshua Veneman, Christopher Shelton, and Robert Jack. Mark Titler's primary role in the company is the President, and his secondary role is the Vice President in Finance. Joshua Veneman is the Vice President of Business Analytics and Sales Management. Christopher Shelton is the Vice President of Internet Marketing and Advertising. Robert Jack is the Vice President of Advertising and Brand Management. The company offers five bicycles that target four market segments. In order to provide the highest quality of products, the executive team decided to limit the number of products available for each market. Instead of providing multiple bikes for each segment, the team focused on developing one industry-leading product. The only market segment to have two products was recreation. This was to target two different customers, one that would pay a premium price for a fully loaded model while the other offered a product for customers who wanted an affordable, high-quality model with fewer features. The Tricky Trail Bikes will be seeking a $5,000,000 initial investment which will be spread out over 5 quarters. The money will be used to open stores, pay for employees training and payroll, research and development, advertising, brand design, and market research to establish a market presence. Within eight quarters, we expect to make up enough profit to cover the initial investment while sustaining a positive future outlook. Through market research, we were able to see customer needs within each market segment. From the research, we determined the mountain and recreation segments would be most profitable. Each product was designed to offer features that target the highest of customer needs. With this philosophy, we believed we would be able to gain significant market share with the possibility of extending our reach to other segments.

Initial focus of the strategy revolves around the mountain and recreational segment to appeal to both the adventurer and relaxing riders. Quarter 2, the marketing strategy was to take a reserved stance in the integration of the market and try to gain some insight to the markets variables prior to implementing any major strategy. Once the market was understood and competition to market shares was established, the company began considering different tactics to obtaining some ground with the market. Overall marketing strategy focused on the initial reserved market stance then progressive adaptability as the quarters progressed. New brands and additional brands were established in the markets, aiding in obtaining higher market shares. This adaptive approach proved to be beneficial since the company was able to not only obtain information but interpret data to action plans to better fulfill company goals.

Initial segment priorities were recreation as the company’s priority with mountain as our second priority. The objective was to focus on large and highly competitive segments with largest geographic markets within financial means of doing so. Our initial competitive posture was to build market position and defend it with taking the lead in the markets of recreation and mountain bikes. After some consideration in quarter 3, the company shift strategies to be a fast follower and investigate geographical locations where competition was either non-present or not focused for markets segments, we were focused on.

Current industry standing, Tricky Trail Bikes has been facings steep obstacles in trying to make a competitive dent in the mountain and recreation markets for the countries of which the company is operating out of. Throughout the quarters, there has been the need to constantly reconstruct market strategies and advertisements to correctly advertise our products without false advertising. While not the leading company in these segments, the company has been able to establish a sustainable marketing strategy within the highly competitive markets and maintain a presence in the areas of which brings in customers.

The market segments selected where work, recreation, mountain, and speed. These segments

were selected due to their segment size, all being quite large compared to the youth. This allowed us

to focus our recourses to build each segment overtime without overextending ourselves.

One of the industry trends we are seeing is most of the competition has expanded to every region and are operating a store in most available cities. Another strong trend we are seeing is substantial increases in spending on social media and Internet marketing. The numbers have a strong correlation with market share control.

Based on our analysis, we have dived the current market into the following segments.

· North America - Europe (NORAM)

· LATAM -MEA

· APAC

Demographics

· Youth

· Family’s

· Individuals

Psychographics

· High class

· Higher Middle Class

· Middle class

· Work

· Recreation

· Mountain

· Speed

The variety of behavioral segments provides a broad spectrum for targeting potential as well as

returning customers due to regional locations. Proximity to mountains, cities, and large areas

used for recreational and sporting events provides TTB opportunities to capitalize on our broad

product offerings. Locating stores within the diverse regions provides the best chance for TTB

growing market share and excelling in those markets we wish to dominate.

Mountain: Altitude MAX....2rd place and climbing in the 5th quarter.

Recreation: Recreation

Recreation: Recreation 2...3rd place in the 5th quarter.

Work: Urbanite....4th place and climbing in the 5th quarter

Need for Speed: Recently developed for the racing market customer 6th quarter

Our products are seeking to appeal to the largest possible cross sections of those customers that are seeking specialize bikes for their respective needs. Some of those needs could be related to living a healthier lifestyle, lessening environmental impact, Adventure, or competitive hobbies. TTB has a product that fits into each one of those segments. We provide local sales and services to aid in answering the customer's questions and providing the continued product service they expect after product sale. We seek a relationship with our customers that will last a lifetime.

In what way is it different than the competition's?

Does this product enjoy a favored position in the market? What is this position?

TTB, as an ongoing project, continues to review and seek improvement through research and development of product lines. Each product line has its own incorporated technology with the primary goal of creating a light, able, and strong carbon fiber frames that can handle the rigors of uses the customer place on them in the environment they were purposed for. Our research will continually improve upon overall product design and features the market demands. We will continue to answer the needs and desire of our customers as we grow and remove the market share from our competitors to dominate our market segments by being on the cutting edge of technology. Future development of a Youth product line will complete our overall objective of having a well-rounded product line to aid in this effort.

TTB’s strategy is a simple one that seeks competitive pricing when compared with our

competitors. In addition, we offer rebates to those customers that purchase our products. This

strategy provides the customers with the value they are seeking, while TTB continues to remain

competitive and capitalize on potential profits on the products it sells.

Despite having five marketing channels to promote our product line, we have received strong competition from our competitors despite our best attempts to gain market share and increase our position in the market. We believe that we didn’t compete aggressively enough on our initial venture, and we were not as aggressive with creating a more varied product line. Our expenditures initially were more reserved but now are coming up to what the competition expenditures are. We took a more cautious approach. As such our standings for our bikes were in the good to an acceptable range for all except for our mountain bike and our newly introduced speed bike. They both failed to make the cut. We’ll be reducing our local media advertising in

the near future and be putting more resources into the internet and regional advertising seeking to gain broader market advertising to increase our percentage of sales on all our bikes. Our promotion plan has always included rebates on our complete product line. There is no plan to change this in the future. We believe this adds value to the customer that is on the fence when deciding which bike to purchase.

What geographic markets are you in, and which do you plan on entering?

What are the sizes of the segments in those areas?

How many salespeople will you assign to each sales channel?

How many salespeople will you assign to each segment?

When and where will you open new sales channels?

Would direct or indirect channel work for your company?

Our mountain bike line AMX and speed bike NFS had the highest profitability. Highest brand judgment among the competition and price judgment was rated 100 for both products. We also achieved having the highest rated advertisements. While maintaining high ratings in those 3 categories, we were able to sell our product and the higher end of the market price range.

Over the last 4 quarters, our product line remained consistent except for adding the speed segment product line “NFS” and an ABC Analysis was conducted based on quarters 5,6, 7, and 8 sales.

· Recreation – Meets top five for customer profile

· Recreation 2- Meets the top five for customer profile

· Altitude Max – Does not have full suspension that would make it more capable of handling rough terrain.

· Urbanite – Meets top five for customer profile

· Need for Speed – Did not utilize upgrades for carbon fiber materials and handlebars that would have made the bike lightweight providing a competitive advantage.

Figure 1. Market Segment Size. Adapted from Marketplace® Live, 2019, https://web6.marketplace-live.com

We have found that price sensitivity is mostly found in youth, work, and recreation. When it comes to mountain and speed the buyer is less concerned with price and more concerned with performance.

Price is more important with youth work and recreation. These segments seem to be more sensitive in price judgment. The speed and mountain segments are very sensitive to brand judgment. The product is capable of desired performance the products brand judgment is usually ranked at a 1 out of 100.

Key competitors for Tricky Trail Bikes are Palmetto Breeze Cycles, 3D Cycling, and Bikes 4 U. Palmetto Breeze Cycles quickly jumped out and took 33 percent of the market share at the beginning of the fourth quarter. 3D Cycling quickly established itself as a key competitor by nearly doubling its market share and leading the market with 35 percent of the market. By the 8th quarter, 3D cycling continued to dominate the market, with 32 percent of the market share. This left Palmetto Breeze, Bikes 4 U, and Tricky Trails in close competition, fluctuating control of the next three spots in the market share.

Palmetto Breeze Cycles took the strategy of flooding the market with bikes to compete in every segment from the first actual sales quarter. This strategy proved successful by establishing themselves as being a leader or close competitor in every segment. 3D Cycling took a completely different approach. They focused on their efforts on fewer products with greater attention on the brand judgment. By the end of the 6th quarter, they had a product in the top three of every category of brand judgment.

3D Cycling’s strength comes from their ability to create and produce bikes that have high brand judgment. Their products are also sold at higher prices than the majority of other competitors in the same segment. Their weakness is they have limited their sales to NORAM – EUROPE, and APAC. Palmetto Breeze’s strength from the beginning has been saturating the market. This has allowed them to stay at the top in brand judgment in every segment, even though they have multiple products that have little to no demand in the market. Their weakness is they are losing market share every quarter. This is because they have not cut their failing products and refocused efforts.

The key competitors are likely to focus on increasing their advertising judgment. I good score for advertising judgment is 90 or greater. None of the competitors in the simulation has been able to accomplish that. Palmetto Breeze Cycling will likely re-focus advertising expense their most profitable and popular products to regain market share. 3D cycling will likely invest in additional social media marketing, specifically blog and newsletters as they are trending in a higher percentage in increasing demand. 3D cycling will also expand to LATAM- MEA.

Competitor Actions Towards Our Plans

Competitors are likely to continue to expand into new cities in an effort to gain market share. They will seek to exceed our brand judgment and advertising judgment in all segments.

Reference

Marketplace® Live. (2019). Retrieved from https://web6.marketplace- live.com/engine.php?tpl=student&studentID=10891993&sessionID=d34c3773ab4079b7 a24eab167289e3cd&quarter=2&language=en- us&resource=pricewillingtopay&parentResource=marketing-research&tab=workspace

1 posts

Re:Topic 2 DQ 2 (Obj. 2.2)

What are some specific goals and methods you may incorporate into group counseling that might be shaped by your culture? Describe the approach you can use that considers yours and the group member’s culture backgrounds.  

Some of the goals and methods I may incorporate into group counseling  are first to be aware of cultural differences between myself in a diverse counseling group. For some cultures the Western approach of communicating is viewed as being too direct and can be off putting. It is extremely important, for group counselors to be aware of different worldviews. What can be thought of as resistance  can be  due to cultural differences. Careful preparation prior to beginning the group process can set clear expectations and can reduce anxiety associated with the group process.   (Corey, G, 2015 ).  The approach that I will use is to treat people with respect and dignity. There are so many factors that make people think and behave the way they do. This comes from family of origin, society, the media, friends and life experiences. All these factors contribute to how people present themselves in group counseling and life. It's important to provide a safe and accepting environment for the client's. Being authentic is an approach which clients respond positively too.  Authentic group counselors tend to  build  trust and a strong rapport  with the group members.  

Refere nces:  

Corey, G. (2015).  Theory & practice of group counseling  (9th ed.). Belmont, CA: Brooks/Cole, Cengage Learning. ISBN-13: 9781305088016