Strategic marketing – bicycle shop assignment

Bunny Hop is an established bicycle specialty store, offering retail sales of new bicycles, parts and accessories, clothing, and maintenance and repair service. It will be located in a heavily trafficked, university-focused area, Absurdness RA. For our store, we have selected a shop, which is about 1500 square feet. It will be partnership business including four partners. Their Jobs are specific but their contribution has a broader value to lead the business to climb the stairs of success. We will keep four sales persons, one cashier, one security, one cleaner, four service people.

Our Mission: To serve the highest quality bicycles and maintenance service at the most competitive prices. Our Vision: Within next five years we will try to be one of the best bicycle stores in Bangladesh. The Reason behind Choosing this Business: Nowadays riding bicycles is a craze. Everyone wants to have the latest model of brand new bicycles. This trend is becoming popular day by day. So, we think it is a eight business to select. We have potentiality in this sector of business and we have a keen interest in this trend. The market is also growing.

We will give them the best quality bikes and accessories within their budget. We also give guarantee of our service that no one will ever get disappointed from our service. Q: How many times you go to ride with a cyclist group? In this question, all options got almost same votes. 30% of the target market are not involved with cyclist groups. May be they like to ride bicycle alone or they use it for necessary purpose like transportation. Other 70% are more or less involved with cyclist groups. People who involve with bicycle riding groups are more concerned about new bikes and accessories.

We have asked this question to learn about the intensity of eagerness we might find from our target market regarding bicycles. Market Segmentation: Demographic Segmentation Consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality. We Segment our product (bicycle) based on peoples age, gender and also keep in mind about the buying ability of our product. We also keep in mind that as we might expect, anemographic segmentation variables are amongst the most popular bases for segmenting customer groups.

Our secondary targets are middle aged people who are more likely do cycling for exercise. We are targeting students or young people as our primary target for various reasons. They are, Students need to go to their institutions. But other mediums of transportation have high cost value. But income of our primary target market is quite low. That is why they will like to choose bicycle as it does not have any fuel cost. Young people like to travel a lot in a group. Having a bicycle make it lot easier to do so. Young people are now more concerned about their health. They want to be fit and look good.

Bicycling is the most effective way to keep the body and mind fit and working. We are targeting middle aged working people as our secondary target market for some reasons. Like, They are now more concerned about their body. They don’t want any diseases like cardiac disease or diabetes. That is why they want to do exercise. But because of Job and other works, this segment do not get time to do physical exercise. For them, cycling is a best way fulfill their demand. They can go to their working and other places riding bicycle. It will save their time form traffic Jam and burn calories. Market Positioning:

In a middle center of Absurdness ARIA road. Well decoration and Comfortable to move. Weakness Expensive floor rent Expensive bicycle As we don’t have enough trained mechanics so we have to depend on other service shop or other expertise Our price will not be low from present market price. So we can’t get any competitive advantage here. Opportunity Lots of customer (especially students). Customers buying ability is high. Low cost of workers. Online shop and home delivery are available Huge demand of cycle. Customers are very eager to buy bicycles No business rival, as we are the first in this area so there will be no competitor for us.

So we will get a first mover advantages. New and untapped market Threats Customers’ lack of knowledge about branded cycle. Absurdness ARIA internal traffic Jam The political unrest situation can be a threat for us. Entry of competitors. Stealing of bicycles. Negative perspectives and doubts about the cycling concept. High maintenance costs(Generator, A/C, Fan, Lights and delivery costs) PEST Analysts: Political Factors The strikes will affect the normal growth of the business and hence political stability is important for any business.

Accessories We will also sell some important accessories like, helmet, tail light, blinker, front light, tubes, fork, saddle, paddle, safety lock, breaks, t-shirt, Jerseys and pants, waterproof rainwater etc. We will provide hex wrenches and hex key sets to our customers absolutely free with the bikes. Some other parts such as headsets, bottom brackets, spokes, chains, cables, and cable housings will be sold to cyclists who prefer to work on their bikes themselves. Price: We can promise many popular & quality bicycles and accessories within a reasonable price.

Our pricing strategy will be competition-based pricing where price will be close or quite same to our competitors or we are going to follow value-based pricing strategy. Different types and brands of bicycles cost different. There are 10000-40000 take bikes and there are also 40000-100000 take bikes. We would like to keep all prices of bicycles in our store. But we will also consider the average income of our main target market and would likely to keep bicycles that match their income. So we will keep 10, task to 40, task bicycles more because our target customers are quite comfortable to buy bicycles within this price range.

Some factors are: Signs and graphics will add personality to a store’s image Good lighting can highlight merchandise sculpt space, and capture a mood that enhances a store’s image. POS (point of Sale) signage for clearance and sale items tends to be in red to draw a consumer’s attention. People: One of the key components of a firm’s strategy is how to achieve and maintain competitive advantage. We all know about the role and importance of the lessons in the distribution channel and salesperson access to the customer as a means of achieving competitive advantage.