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Athletic Cycles Strategic Plan

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One of the world's fastest, healthy, environment friendly and cheapest means of transportation is cycling. It not only reduces pollution to provide care free environment, but also improvises human health by burning massive amount of calories. By keeping the same benefits in mind, the chosen business for the assignment is a new brand of bicycles called "Athletic cycles".

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Athletic Cycles Strategic Plan

  1. 1. 1 | P a g e Executive Summary The following report will be based on Athletic cycles and its two key products cycles will be produced in Australia where few major parts will be imported from China. Athletic cycle will not only provide usual experience but will also have extra features to keep the users active and make their experience enjoyable. It contains a strong motor of 1.5 to 2.5 horsepower (HP) continuous duty. The handle bars are strong enough to provide a stable and fix position to riders. It will not create any kind of disturbance to block your arm motion and provides an easy grip. The new brand of cycle is going to be place into the market in the start of 2012. The potential target market is all the household/working class/ teenagers who have an average income, who love to have their own cycle that they can ride on the daily, weekly basis. Since the company is new and all its product will be new in the market, it will have big competitors in market but Athletic cycles strength is innovative and more flexibility in quality and price. All major macro environmental factors have been highlighted along with the growing trend that will help the company in designing their marketing campaigns and targeting the market. Evaluation process must be consistent and keep a strong check on customer feedback and feedback coming from advertising campaigns. Athletic Cycles will be promoted by highlighting the pollution free and recyclable nature of the products as that is the main concern of the company.
  2. 2. 2 | P a g e Contents Executive Summary ............................................................................................................................1 Introduction.......................................................................................................................................3 PRODUCTS.........................................................................................................................................3 Athletic Zone Z-5.............................................................................................................................3 Zone Z-5+.......................................................................................................................................3 STRATEGIC PLAN.................................................................................................................................4 Company’sVision............................................................................................................................4 Mission Statement..........................................................................................................................4 Demographic Macro-Environment:......................................................................................................4 Age:............................................................................................................................................4 Gender:......................................................................................................................................4 Geographic Location:...................................................................................................................5 Economic Macro-Environment:...........................................................................................................5 Cultural Macro-Environment:..............................................................................................................6 Education:...................................................................................................................................7 Natural Macro-Environment:...............................................................................................................7 Technological Macro-Environment:.....................................................................................................8 Political Macro-Environment:..............................................................................................................8 Conclusion .........................................................................................................................................9 References.......................................................................................................................................10
  3. 3. 3 | P a g e Introduction One of the world's fastest, healthy, environment friendly and cheapest means of transportation is cycling. It not only reduces pollution to provide care free environment, but also improvises human health by burning massive amount of calories. By keeping the same benefits in mind, the chosen business for the assignment is a new brand of bicycles called "Athletic cycles". Athletic cycles consists of a workforce over 40 employees, having outlets in all the major cities around Australia. The major feature of Athletic bicycles is that it has a sensor installed in it which automatically changes gear according to the weight of the cyclist. Although the cycle also has a meter to set the gear manually according to the weight and age of the cyclist but its automatic function is specially designed keeping the calorie burning process in mind for people of all age. PRODUCTS Athletic Zone Z-5 Athletic Zone Z-5 will be equipped with 1.5 HP motor and provides users an exceptional value. This cycle will be especially manufactured for all the busy people, who want to see themselves fit and strong. This Z-5 will have thin tire with fluid break systems on it that can go to the maximum speed of 15km along with 2 health programs to keep the users healthy and to make them relaxed. Zone Z-5+ Zone Z-5+ is the other Athletic cycle that will have an added value. This Z-5+ cyc;e will be manufactured for all the men and women who want to stay fit and good looking, as it will have a meter on it, that will indicate how much fat they have burned in last week, 15 days and monthly records as well. This cycle will have 2.5 HP motor and with the maximum speed of 20km along with up to 4 health programs. It also contains calories calculator and heart rate sensor. This cycle will not just provide number of features but a lifetime warranty of its body and 5 year complete warranty with the money back guarantee up to 5 years.
  4. 4. 4 | P a g e STRATEGIC PLAN Company’s Vision “To become the first choice by creating innovative health and fitness cycle products that provide absolute health & fitness solutions for all” Mission Statement With unique range of cycles, we aspire to provide multi-purpose Athletic Cycles which can keep people absolutely fit and to provide them with excellent health benefits. Our mission is to spread our health & fitness products throughout Australia. Demographic Macro-Environment: There are certain factors that play a significant role in affecting the demographic macro- environment among which the key factors are: Age: In the process of launching Athletic cycle brand, it has been ensured that the potential customers of the product will rely heavily on age factor. Though various designs and sizes of cycles will be available for Athletic cycles along with the updated software which relies solely on the initial customer input regarding his/her age, weight, gender and few basic questions, in order to adjust the calories burning program accordingly. Gender: Another major factor that plays a big role would be gender, color is not an issue now days for distinguishing a product between a male or female. Pink which was supposed to be a feminine color, is highly in demand by guys now a days. However, slight change in shape will differentiate the product for masculine and feminine (Laric, M. V., & Lynagh, P. M. (2010)). Also, the settings for burning calories in case or male are female will definitely be different as burning fat for females require extra effort.
  5. 5. 5 | P a g e GeographicLocation: According to the recent data, it has been observed that people are more urbanizing now a day’s rather then moving to rural areas which can be considered as a growing trend. The cities are filling up rapidly due to more earning opportunities in cities rather than one in towns. This is why, people are trying to get accommodations in cities, and if not, then to the areas closest to the major cities keeping this aspect in mind, Athletic Cycles will be having their outlets in major cities of Australia, targeting mainly those people who live within the city or suburbs that are close to city as they will be more interested in using cycles as their medium of travelling. http://chartingtransport.com/2010/11/13/public-transport-patronage-trends/ At the same time people living small suburbs or close to cities travels majorly by their own transports or by public transports, for personal transports majority of the people prefer to use cycles as the basic medium of their transportation, however cycling on the motorways is quiet
  6. 6. 6 | P a g e risky and claimed as hazardous. Hence use of Athletic cycles in their towns will be more appropriate which will be installed with small GPS unit on request from customers. Economic Macro-Environment: The major part of marketing mix relies on economic force. For cutting down the cost, the raw materials that will be used in the production process will be imported from China. So with the help of changes in import taxes and policies, the whole cost for production of bicycles will be changed. With an increase in taxes on import, the price for "Athletic Cycles" will eventually be a little higher which might allow our competitors an edge on prices. Many Australians usually shop on their credit cards and they pay at later stages, this trend is not something new and to satisfy customers with such requirements company has to offer various packages where customers can buy now and pay later or may be gift card options of up to $900 (Crawford, A. (2000). However, as being a new entrant in the market, we cannot allow our potential target market to emphasize on price; therefore, promotional activities will take place on a much greater rate in various malls, city centers, sponsorships will be done to various sporting events keeping the target market in mind (Schultz, D. E., & Schultz, H. F. (2004). Cultural Macro-Environment: In general one of the most significant impacts on Australian society is by culture and hence acknowledged for bringing people together. In Australia, sports are usually considered as their culture; even people who have arrived here from different countries enjoy the different kinds of sporting events and prefer to stay healthy by participating in different sport events. By participating in sport events it has highly supported quality of life and enhanced community networks and helped generating economic outcomes through opportunities of employment, business and government funding. There are so many sporting season here in Australia including the season for cyclist (Bonnema, M. (2006). This season can cause a major increase in demand which would lead to increase in sales figures, especially by sponsoring the cycling events will be
  7. 7. 7 | P a g e a very helpful. Keeping this impact in line, supply of Athletic cycles needs to align with the demand per season. Hence, the major task is to generate sales 365 days an year (Bonnema, M. (2006). Trend for riding on cycles is growing day by day, now more people prefer to ride cycles to their work, keeping this going trend in mind, developing cycles for people of all age groups will help the company in gaining competitive strategy over others. Education: The rate of literacy has higher impact on the marketing strategy. As people are on the road of education, they can understand the major advantages and disadvantages of healthy and carefree environment. With the help of such carefree environment the marketing and advertising message should revolve majorly along healthy and pollution free environment. People are now more concerned for recyclable and green products. Highlighting the recyclable factor and green nature of Athletic cycles will be very useful as it’s a growing trend and can be use as the key marketing factor. Also, the traffic in urban area is on a hype of increasing day by day because people are more urbanizing. Hence, to travel just a single mile, at least 20 minutes of spare time is required during peak hours especially in this era where time can be compared to money. Thorough advertising will definitely educate the educated ones about the importance of Athletic Cycles. Natural Macro-Environment: Natural macro environment usually consist of resources that are required or needed as inputs by marketers in their marketing campaigns. It will not be easy to maintain the quality of product on regular intervals (Laric, M. V., & Lynagh, P. M. (2010). The Role of Integrated Marketing Communications in Sustainability Marketing. Proceedings of ASBBS. Las Vegas). Certain natural impacts may cause product strategy or marketing mix to alter a bit, for which the company has to be prepared. Due to the rapidly increasing environmental concerns, Athletic cycles will be advertised by highlighting the pollution free and recyclable nature of the product. For the marketing of Athletic cycles, we have to be aware of several trends in natural environment, the first involves the growing shortages of raw materials.
  8. 8. 8 | P a g e Technological Macro-Environment: The speed in the technology shift encountered quiet often during the last few years. Older technology getting obsolete and rapid shift towards the newer technology has been noticed in all major sectors of businesses and industries. It is one of the most dramatic forces that is shaping our destiny, making use of proper technology not only in manufacturing but also in research and development for the company will be very helpful Kotler, P., Armstrong, G., Brown, L. & Adam, S. (1998). Certain technological factors will definitely effect the production and delivering cost of Athletic Cycles. Now days, companies are investing their massive amount of budgets on Research and Development of product, which requires heavy equipment and machinery. So, in order to stay within the competition, technology advancement will have to be adapted to rapid up the operations (Ravi. S, Torger. R, 1993). Government has also set standards on the production plants as far as technology advancement and technology adaption is concerned. Those who are unable to adopt the advanced technology are sent out of the competition by government regardless the nature of the industry they are in. Hence with each technological shift, the product's price will have to change. Marketing mix seems to be directional proportional to the technology advancement. Political Macro-Environment: Political macro-environment has a direct impact on marketing mix. With a change in political conditions (such as increase in taxes, increase in the duty of imports or in the change of governments) would eventually let prices of Athletic cycles to change. In case of increases in taxes, customers switching opportunities are quiet higher and hence could be stayed with the brand by making them feel self-esteemed with the brand (Kotler, P., Armstrong, G., Brown, L. & Adam, S. (1998)). The feeling of esteem will eventually turn them loyal with the brand resulting with the increase in customer retention rate.
  9. 9. 9 | P a g e Another major political influence on the business could be lifting up policies for the new entrants. In case of no economic or political barriers for new entrants, options are widely open for new comers to jump into the market and try making it a saturated one. Although the market is not saturated yet, there is still a gap that needs to fulfill. Conclusion For any company to be successful in this highly developed market requires extensive marketing, high level of research and development and great customer service. For Athletic cycles to be able to sell their products and gain the competitive advantage the company not only has to keep in mind the macro environment for their products but also to make sure that their customers are happy and satisfied. Once the target market is recognized the next big task would be to target them using the right strategy which can be achieved by working on the macro environments of marketing. Since Athletic cycles will be a new entrant in the market, it has to keep in mind the growing trend of its target market, how the people will perceive the product and if it’s really in demand or not.
  10. 10. 10 | P a g e References Bonnema, M. (2006, February). Sustainable Product Design: Just the Facts.Retrieved January 2012, from www.organicworkspaces.com: http://www.organicworkspaces.com/pdf/Sustainable- Product-Design.pdf Crawford, A. (2000, June 12). Enjoy It While You Can Afford It. The Age (Today section), p.1 Gyms, Sports Grounds, and other Facilities in Australia: Market Research Report http://www.ibisworld.com.au/industry/default.aspx?indid=658 Kotler, P., Armstrong, G., Brown, L. & Adam, S. (1998). Marketing (4th ed.). Sydney: Prentice Hall Laric, M. V., & Lynagh, P. M. (2010). The Role of Integrated Marketing Communications in Sustainability Marketing. Proceedings of ASBBS. Las Vegas. Melnick. M, ’20 Health and Fitness Trends in 2012’, http://www.fitness.org.au/317041.html Ravi. S, Torger. R, 1993, ‘The Environment of Marketing Channel Dyads: A framework for Comparative Analysis’, Journal of marketing Vol. 47, 55-67 Schultz, D., Kerr, G., Kim, I., & Patti, C. (2007). In Search Of A Theory Of Integrated Marketing Communication. Journal of Advertising Education, 11(2), 21-31. Schultz, D. E., & Schultz, H. F. (2004). IMC The Next Generation. NSW Australia: McGraw Hill

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