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Marketing Plan-Situation Analysis - Essay Example


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Marketing Plan-Situation Analysis

The main feature of Masi bikes are quality, speed, endurance with innovation at an affordable price. The bike is light in weight as compared to other bikes and equipped with latest and modern frame. The key feature of this bike is the knobby tires that improve the grip on rough surfaces and the high quality brakes that have high power than normal brakes. Some other features if this bike includes additional stability and dual side pedals. The distribution channel that would be used to provide the consumers with latest model of Masi CXR will be through outlets where the consumer would easily engage in buying. The Masi CXR would be sold through intermediaries where the consumers would be encouraged to provide feedback regarding the bikes and the consumers will also be encouraged to take the bike for trials. The market for such bikes are increasing day by day as the customers are getting more inclined towards a healthy lifestyle and so are getting obsessed with cycling. This increasing trend can be clearly seen in modern cities where the bicycle journey has increased by 120 percent since 2000. The market has great potential for growth as evident from the popularity of the events like Cyclocross, which have gained attention of whole world; the popularity of Cyclocross has increased to an extent where women and juniors are also participating in such events (Spence, 2010). The increase in shifting trend from cars to bicycles is a golden opportunity for the biking industry to reach their target

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audience. The marketing strategy is to host events and programs which would support the cultural awareness of bike riding. Cyclocross has become the fastest growing market in USA and is increasing globally. The economy of most of the countries is drenched in crisis where even banks are not lending loans to one another; this has created an opportunity for the biking industry as these bicycles are one time investment and are not powered by products that are continuously facing price increase. The economic crises in countries have provided the biking industry with a window to set their feet firmly in the market to generate sales. This business is flourishing world wide as people are more conscious about eco-friendly environment. This market is at peak because most of the consumers are tired of the rising prices of gas and petroleum products because of which the consumers are shifting to two wheeled mode of transportation rapidly. The sales of bicycles are increasing continuously resulting in high profits and sales annually. This is the only industry that is thriving in the economic crisis and hasn’t experienced recession for the last 2 years like the rest of the businesses (Suciu, 2012). According to a forecast regarding the biking industry in UK and the rest of the world; the market value for this industry will exceed ?3billion by 2015 (BBC News, 2011; The Guardian, 2011). This biking industry might have to face some setbacks due to the increase in prices of aluminum, carbon and steel. The cost of steel alone has increased by 60 percent in the economic recession. Even the cost of hiring labors has increased that leaves the industry with new hurdles; this might not be the only hurdle because the cost of producing a unit in the bicycle industry has increased that leaves the industry with low profit margin. The leading companies in the market are aggressively competing for the market share in bicycle


SITUATION ANALYSIS: The Masi CXR is designed for passionate bikers that want to have fun while cycling. This Cyclocross bike is specifically for those bikers that would go for speed, stability and endurance. This bike enables a biker to cross rough terrains and also is light in weight to be carried on shoulder for impenetrable areas…
Author : cschamberger
Marketing Plan-Situation Analysis
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