Introduction
My team members and I were able to analyze and comprehend the product testing market as well as bring the product to the marketplace for customers owing to the marketplace simulation. We shifted our activities in the fourth quarter, choosing to improve our product line with new commercials and build more locations with more personnel. The goal of this assignment is to describe how to leverage existing marketing methods to create a marketing mix that promotes sales while also maximizing long-term profits.
Objectives and Marketing Decisions
The corporation’s goal has always been to remain competitive through activities, generating orders, visitation to retail establishments, or demands for more information. Because we did not perform effectively, we had to devise a series of improved techniques to make up for our losses. Operational enhancement measures include developing more stores, expanding the consumer union share, creating more bikes, and engaging in marketing to raise income. Finally, marketing strategies were made depending on the location we chose, NORAM-EUROPE. That location gave us the chance to create bikes in high want in cities such as Chicago and Los Angeles. Focusing on those cities, we examined which bikes piqued customers’ interest with certain demands and want, which comprised the market prospects primarily in the business and recreational sectors.
Product Positioning
All three of our businesses’ distinct product positioning, Trusted Tires, Speedy Quick, and Mini Tots, were customized for their intended market with a flexible pricing range of $750-$1200. The first is Trusted Wheels, whose market is for professional people who want reliable transportation, as well as leisure use due to the hybrid pleasure tyres and easy comfort architecture. Second, Speedy Quick is targeted to individuals in demand of speed; with its intense energy metropolis being Los Angeles, they must be equipped to match up with the nearby customers due to the aerodynamic form and the drop-down handlebars that allow additional wind flow. Finally, Little Tots is designed for child-sized customers, giving caregivers peace of mind understanding that their children enjoy comfortable tyres, straight handlebars, and a polymeric cushion seat for maximum satisfaction. These commodities are priced to describe the item category and why it provides worth in the form of excellent quality, specific characteristics, or reputation. Since it provides benefits in the form of excellent quality at a fair cost, an item’s cost could be about average for the product category. Furthermore, a product may be priced fairly low for its product category since it provides value in the form of satisfactory performance at a lesser cost (Peter and Donnelly, 2018).
Marketing Strategy and Recommendations
A detailed approach for Trusted Wheels would be to boost the promotions and advertising by publicizing the bikes in more localities due to the flexibility of the bike but to retain the cost due to the competition’s cost levels being mildly greater, and finally, to raise shop lines with more sales representatives to describe its utilization and reliability for those on the go. Furthermore, since Speedy Quick is currently our second best-seller and dominates the speed sector in bikes, we need to capitalize on it and display its ability to operate at higher velocities. This can be accomplished by displaying a simulation in our showroom so that customers can see its capabilities. It has shown to yield larger overall profits than our rivals at its pricing point, so that will continue unchanged. Finally, because Little Tots is a child consumer market, we can drop the pricing point by around 50% to obtain a sales increase. This would lead to increased interest for people who do not have the finances to purchase a fancy bike for their youngsters and highlighting this cost reduction in commercials would catch the attention of caregivers. We can demonstrate the easy-to-ride features by walking through each functionality on social networks, allowing parents, in particular, to see the device up close before purchasing (Adams, 2017).
Brand Equity and Management
It is critical to emphasise on brand equity and brand management for the organization’s performance in quarters 5-8. According to the literature, brand equity is established by the customer and is the totality of the customer’s evaluation of the item, the organization that produces and promotes the item, and any other elements that influence the item between production and customer usage (Peter and Donnelly, 2018). The collection of resources or obligations connected with a business can either contribute or take worth from it, and we can raise our equities by properly maintaining our brand and integrating valuable extra brands. Brand management extends by communication with our organization and international scheduling, financing, coordination operations, and the capacity to conduct universal performance assessments and execute universal pay schemes (Bhasin, 2021). We will benefit the most from extending into other places because we are currently centred on only one.
Price and Demand Estimates
In the third quarter, we produced the Super Lightweight Bike, which was offered for $950 and had a request of 200 units (four salesmen multiplied by 50 units). In Quarter 4, we increased our brand portfolio by adding three new bikes and removing Super Lightweight Bike from Trusted Tires. By including three bikes in the mix, the industry became more diverse. Trusted Tire remained at $950, Speedy Quick at $1,200, and Little Tots at $750. Demand had risen to 900 for 12 salespeople who could potentially offer 75 units per individual. This was divided into a demand of 300 units per product.
Financial outcomes
With these three products in view for improvement, we introduced two additional bikes to the portfolio. These are called Xhilaration and challenging landscape, and they are geared for racing and terrain biking. We also launched an additional storefront in Sydney as a result of the merging of these businesses, which will enable our earnings to grow and our goods to attract a new customer base.
Pro Forma Profitability of Marketing Division
Report Item Quarter 5 Quarter 6 Quarter7 Quarter8
Gross Profit
Revenues 1,847,547 2,243,345 1,522,050 2,632,100
-Rebates 65,464 69,676 81,000 100,100
-Costs of goods sold 534,446 759,535 2,044,443 1,242,435
Gross Profit 1,353,553 1, 343,544 1,544,956 2,543,663
Expenses
| Store Leases 145,454 253,343 143,545 254,345 |
| + Sales and Service Personnel Expense 59,345 74,244 75, 353 75,545 |
| + Brand Promotions 0 0 0 0 |
| + Special Programs 0 0 0 0 |
| + Ad Creation/Revision 16,000 7, 000 16,000 7,000 |
| + Point of Purchase Display Expenses 800 800 800 800 |
| + Advertising Expenses 10,500 11,500 10,500 10,500 |
| + Internet Marketing Expenses 3,500 3,500 3,500 3,500 |
| + Engineering Cost for New Brands 45,000 0 0 0 |
| + Market Research 60,000 0 0 0 |
| = Operating Expenses 305,445 270,575 346,880 336,676 |
| Operating Profit 996,363 1,454,575 1, 464,073 2,575,464 |
| Miscellaneous Income and Expenses |
| + Other Income 0 0 0 0 |
| – Other Expenses 0 0 0 0 |
| – Research and Development Costs 0 0 0 0 |
| – Set Up Costs for New Stores 0 0 0 0 |
| = Net Profit for Division 353,544 256,657 344,657 367,474 |
| Cumulative Net Profit for Division 1, 176,546 1,357,646 1,478,767 2,545,646 |
| References |
Adams, R. (2017). Ten marketing strategies to fuel your business growth. Entrepreneur. https://www.entrepreneur.com/article/299335
Hitesh Bhasin. (2021, April 22). Brand equity definition and importance. Marketing91. https://www.marketing91.com/brand-equity/
Peter, J. P., & Donnelly, J. H., Jr. (2018). A preface to marketing management (15th ed.). New York, NY: McGraw-Hill. ISBN-13: 9781260287257
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