MS Marketing Plan

MS BIKES: MARKETING PLAN

Executive Summary

After the government regulation in the bicycle market, the MS Bikes received the support of the shareholders and increase the operations on the mountain bike segment. This marketing plan supports the strategies planned by the company with the objective to achieve the 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. With this statement in mind the goals set to our future are basically achieve a high Shared Holder Value, at least $400 and become the top brand on the mountain bike segment. The strategies that will be used are essentially use efficiently all the medias and public relations, use a price strategy that is adequate to our target, be aware of the activity of our competitors and if necessary lowering near term earnings to achieve a better earnings in a long term. Also, this marketing plan includes a action plan for our future decisions, obviously we are ready to adapt depending on the market behave in front of our product, decisions and our competitors strategies.

We at MS Bikes are prepared for the years ahead and ready to to be the best bicycle company!

TABLE OF CONTENTS

1. Situational Analysis………………………………………………………. 4

1.1 Macro environment ………………………………………………………4

1.2 Microenvironment ………………………………………………………..5

2. Swot Analysis ………………………………………………………………5

3. Mission Statement …………………………………………………………6

4. Opportunity and Issue Analysis .........................................................6

5. Goals and Objectives ..........................................................................7

6. Marketing Strategies ...........................................................................7

6.1 Segmentation strategy and target market .......................................7

6.2 The marketing mix .............................................................................7

7. Action Plan ...........................................................................................8

8. Evaluation Process (Marketing Controls) .......................................14

1. Situational Analysis

1.1 Macro environment

MS Bikes is located on a Western capitalist economy, with a population of 15 million people, approximately, with high discretionary income.

The government regulates the market and restrict the importing of bicycles and bicycle components from other countries, with the objective of protect local manufacturers. After this government intervention, many shareholders invested in these companies.

There are three available segments: Mountain Bike, Road Bike and Youth Bike. But all local manufacturers were only able to produce a single product in the mountain bike segment, and after a couple of years will be possible to produce the others segments.

It is important to notice that with MS Bikes, there are more 4 companies in the similar situation macro environmental.

The mountain bike segment, presents some characteristics such as a recommended price of $700 dollars, the sensitivity from the market it’s low about public relations, high with advertising and medium with price, quality, distribution, delivery time and about the product specifications.

The mountain bike market it’s young, with health and environment awareness, they want a bike that supplies they day by day needs, that is why they don’t care so much about luxury, they want a sturdy and high performance bicycle.

Three 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: