3. Stay Tuned Bikes, a privately owned Bellevue bike shop, specializes in high end
bike sales and repairs. The marketing plan we have developed in coordination
with the owner, Oleg Mikhaylov, will help expand his current corporate
clientele. Our objective is to receive confirmation of a corporate partnership from
at least one local company, enabling them to provide bike tune-ups for their
employees before National Bike Month in 2015. We will be executing this by
offering the option to write off the repairs on their taxes. After compiling data
from secondary and primary research, we have concluded that the average
American will be interested in this service. Businesses that employ 1000-2000
people are ideal. In the next month we plan to reach out to the businesses via html
emails, as well as phone and personal meetings if the opportunity arises.
executive summary
1
4.
5. table of contents
3
ExecutiveSummary ………………………………………………………………………………………..1
Business Introduction & Overview ………………………………………………………........…..4-5
Marketing Team …………………………………………………………………………..……………….6
Marketing Objective ……………………………………………………………………………………….8
Situation Analysis …………………………………………………………………………………………10
SWOT ……………………………………………………………………………………………..11-14
Trend analysis ………………………………………………………………………………………..16
Competitiveanalysis ……………………………………………………………………………….. 17
Target Market …………………………………………………………………………………………… 18
Description……………………………………………………………………………………………19
Customer profile……………………………………………………………………………………..20
Business profile………………………………………………………………………………………21
Marketing Research ……………………………………………………………………………………...22
Secondaryresearch ……………………………………………………………………………..23-26
Primary research …………………………………………………………………………………….28
Strategies ……………………………………………………………………………………………………30
Tactics and implementationplan…………………………………………………………………..31
Tracking and evaluation……………………………………………………………………………..32
Appendices ………………………………………………………………………………………………….34
Bibliography ………………………………………………………………………………………………...35
6. business introduction…
4
Stay Tuned Bikes opened in June of 2013 as a simple
bike repair shop. Soon after, demand rose and they
moved on to filling custom bike orders and fittings.
Oleg Mikhaylov, the owner and founder, has ten years
of experience in the bike shop business from past
work. His shop is a small ‘hole in the wall’ type with
minimal inventory in-store, but a great deal of
character. Customersare guaranteed a professional
yet personal experience at Stay Tuned Bikes.
welcometo stay tunedbikes
7. …& overview
5
12001ne 12th
st.
suite #82
bellevue, wa
Repairs
Standard Tune-up
Major Tune-up
Overhaul
Fittings
$50 per 30 minutes
Free with bike purchase
Brands
8. marketing team
6
“Stay Tuned Bikes is a recently
opened business with a small
target market. Mr. Mikhaylovis
a young entrepreneur fresh out
of business school whowould
be appreciative of some
marketinghelp. His business is
doingwell buthe does not
spend much time in the realm of
promotion or advertising. When
asked abouta mission
statementor vision for the
future of Stay Tuned Bikes, he
didn’thave much to say. He is
open to our expertise and we
are excited tosee whatwe can
dofor the growth of Stay Tuned
Bikes!”
~The MarketingMagicians
Tucker Dana
Jordan Wakeman
Chris Conlogue
Kelsey Greene
MattMiddleton
Garrett Felix
9.
10. marketing objective
8
Our objective is to promote the annual tune-up program of Stay Tuned Bikes,
persuadingat least one new businessto join. Our strategy will be to contact
large localbusinessesvia Mr. Mikhaylov’sbusinessemailaddress, as wellas
by telephone. Businesses with at least one thousand employeesare highly
preferred. The program takes place in April of 2015, and any participating
businesseswill be expected to pay for tune-ups for their employees’bikes.
The corporate benefitsof partneringwith Stay Tuned Bikes would be
increasedemployeesatisfactionandtax write-offs. We will aim to have
commitment from at least one new businessto participateby Friday,
November 21st
, 2014.
13. 11
Strengths:high qualityproducts, high quality services, location
W
O
T
High Quality Products
While general bikes can be found at just about any
outdoor sporting goods stores, shops like Stay Tuned
Bikes offer specific high-end brand road racing
bikes. Because the target market for these types of
bikes is so small, there is not a lot of demand for a wide
variety of high-end bike shops. This puts Stayed Tuned
Bikes at an advantage because they are one of very few
similar stores in this area.
High Quality Services
With ten years of experience in fixing
bikes at previous locations, Mr.
Mikhaylov can be trusted to deliver
exceptional service to his customers. He
is running a solo act, ensuring that every
bike that comes through his shop is
treated with a consistent hand. Previous
customers have described him as “not
only knowledgeable, but also very caring
and personal”, and “an excellent
mechanic” (Yelp.com).
Location
The shop is located in Bellevue in an area full of
high-end businesses such as Porsche, Mercedes
and Best Buy. This could help his business
because the population who shop in this area
probably fall under the wealth demographic of
our target market.
“Oleg, the owner, is not only
knowledgeable, but also very
caring and personal”
14. S
Weaknesses:lack of publicawareness, hard to find
O
T
12
Public Awareness
Stay Tuned is a new small business, with a very specific
target market. The age range of this market is not the
easiest to attract on social media, and Mr. Mikhaylov
doesn’t use much promotion other than his website,
Facebook, Yelp, and word of mouth.
Hard to Find
While there is some signage around the location, it still
may be difficult to locate Stay Tuned Bikes if you weren’t
looking for it specifically. It’s not in an area of heavy foot
traffic, but it could possibly be seen when driving
by. Once people find it, they will most likely enjoy the
quiet and calm location of the store.
New small business,
with a very specific
target market
·····
Not the easiest to
attract on social media
·····
Not inan area of heavy
foot traffic
15. S
W
Opportunities: roomto grow,not a lotoflocalcompetition
T
13
Not a Lot of Local Competition
Although older and better known, there are only
a few competing businesses in the surrounding
area. This gives more power to Stay Tuned Bikes
to become a well-established force in this field.
Room to Grow
Stay Tuned Bikes is a
young business, having
only been open since
the spring of last year,
and it specializes in a
rare product and
service. Mr. Mikhaylov
is in a great position to
expand his company
and increase clientele,
and with that, revenue.
16. S
W
O
Threats: short seasons,a few competing shops in area
14
Short Seasons
Local climate leaves a small window for
bike use every year. Bike sales and
repairs drop off in September through
December, and then pick up again at
the first of the year due to New Year’s
resolutions. Business then slows down
again until the start of summer, when
people are getting back out on their
bikes in the sunshine.
Competing Shops
Other local bike shops are slightly
better known and are in more
populated spaces, such as
downtown Bellevue near the main
shopping mall of the area. Other
bike shops offer large discounts in
the winter seasons in hopes of
bringing in more traffic in the slower
months.
17.
18. trend analysis
16
Political: A new mountain bikepark has just been built in Redmond, next toRedmondHigh School. This will be
foundencouraging tonew andregular riders. There are opportunities toget involved with thebuilding of the
park and be the“goto” place forpeople whoride at thepark. Nearby businesses willbe more likely to
participate in our tuneup program because of the conveniently close park.
Social: With biketowork month coming up in May, businesses can have their employees’bikes tunedup in
April while getting a tax write off. This allows the businesses togain employee satisfaction at virtually no cost.
Economic: Thereis ageneral decline in sales andservices starting in late August. It continues untilaspikein
January from people setting New Year’s resolutions, andthen continues todecline untilApril. Though the
decline in sales andservices is a problem, thepickup begins again in April. This is lines up perfectly with the
tuneup program because it runs through April just aftertheend of theoff season.
Technological: New designs arecontinually produced. 3D printing will bring theproduction cost of bikes down
and makehigh end bikes more affordable over time. Thecommon customeris also gaining access to higher
end road bike equipment that was once reserved for racers. An example of this wouldbe timetrial cranks that
will record datafrom theride andanalyze the data. This attracts morecustomers. Theinnovativeproducts will
increase interest in customers andkeep them coming back.
19. 17
competitiveanalysis
Gregg’s Cycles is a well-established local business. They havea wide selection in the store. Although they do
not usually offer sales, they are votedtobe the best in Seattle. They have bikes available forrent.
Performance Bikes offeralot of sales, dueto surplus inventory from previous years. Their bikes are easy to
order online, and they offer free shipping. Videos on “how to” bikerepairs are available online.
REIis a large co-op that stands behind all products for one year. They are well-established andknown for
biking accessories available in store. REI also offers free bike fittings.
Quality Price Product Availability Customer
Service
Categories
Relativenumberscale
1
2
3
4
5
21. 19
description
The Geographic:
They live in Kirkland, Seattle,
Bellevue, and Redmond, but also
come from places across the
Pacific Northwest, including
Canada.
The Lifestyle:
Loves biking!
Athletic Healthy
Go-getter
The Attitude:
Currentcustomersfeelasthoughtheycan rely on the industry to
deliver a quality product that can help with everything from
commuting to exercise. They keep coming to Stay Tuned Bikes
because of Mr. Mikhaylov’s cause to provide the highest quality
service. The product that is being produced is of high quality,
leadingpeople to repair the bike rather than replace it over time.
Thesmallbusinessisable to careforeachindividual’sneeds while
also being able to provide excellent service to everyone that walks
through the door. They stand behind the work they do on the
bikes sothe customers know everything will be done correctly the
first time.
The Motivation:
Stay Tuned delivers the highest quality
available in repairs, tune-ups, bike fittings,
andcustomorders. Customers are likely to
be frequent cyclists, or would at least want
tobe. Customerswillmostlikely notcome if
they are not serious cyclists.
The Demographic:
35-50
Upper-middle class
Disposable income
22. 20
customerprofile
Our target market is Jon Smith. Jon is a 36 year old
software developer for Microsoft.He lives on
Mercer Islandwith his wife and two daughters. In
his free time he playsgolf with hisfriends. He
exercises and works out about six hours per week,
many of whichare spent on his bike. Although Jon
has a very large annual salary,he is very frugal. Our
marketingcampaignis centered on Jon. He enjoys
fitness, as well as saving money. Getting his bike
tuned up and ready to ride would be an excellent
service. Bikingto work for a month (or longer)
would improvehis level of fitnessas well as save
him money on gas.
23. 21
business profile
Costco’s corporate Human Resources
Manager is Steve Jacobson. Steve greatly
values employee satisfaction.In his free
time he takes his family to the beach to surf.
Our marketing campaign fits in with Mr.
Jacobson very well. He will have many happy
employees as well as a platform to promote
fitness and environmental friendliness. Best
of all, paying for the service for his
employees will be a tax write-off.
25. 23
secondary research
Inrecent years, society has developed an increased desire forhealthy living. This progression in lifestyle has led toheightened demand for
innovation in culturethat will allow the health-conscioustoapply healthful practicesto their daily routine. Individualsare seeking political action, suchas
the development ofdedicated bike lanes to use in their daily commute. These people are ofteninterested in not only their ownhealth, but the health of
their environment as well. Businesses are respondingby offeringenvironmental andpersonal health incentives to their employees, whichthey in turn
benefit from throughtaxexemptions acquiredthroughthese programs.Health-consciousconsumersare shapingthe future ofthe country,andare
motivating businesses and governments alike to take action
Aspopularity to this new healthy lifestyle grows,more andmore cities are joining the bicycle lane trend. Seattle is one of the cities on the
forefrontofthis movement. Ithas dedicated bikes lanes that are separated from the carson the roads. These lanes even include bike specific lights telling
bikes whenit safe to crossthe intersection. Seattle postedan article ontheir website showingoffthese new bike dedicated lanes and how they would
benefit the health and safety ofpeople along withhelping with traffic congestion.“Seattle is building a networkthat puts all residents within¼ mile ofa
bike facility. We want to make riding a bike a comfortable part ofdaily life foreveryone.” (seattle.gov 2014) Theyexplain how it will be convenientto all
residents of Seattle so they canhelp bringabout a greener and healthier community. “Riding a bicycle is a comfortableand integral part ofdaily life in
Seattle for people of all ages andabilities.” (seattle.gov 2014) StayTunedbikes is on this same path as well, encouragingpeopleto ride more thandrive
and make cycling a daily partof everyday life. By utilizing all means oftransportation available it will bringabout a healthier and strongercommunity.
26. 24
Growingpopulationand industry have been increasingly damaging the environment since the comingof man. Inrecentyears, it has become
evident that the wearand tear humansputon the earth couldpotentially be very dangerousto the survival ofmankind and animals alike. Fortunately,the
trends in environmental decay are being researchedand recordedin incredible detail, and allow foractivists tofight against the issues at
hand. Environmental friendliness movements are sproutingupeverywhere. Bicyclingis one trend that is currentlyskyrocketing. Accordingtothe Bike to
Work Day organization,bicycling hasa less negative effecton the environment becausethey use no fuel,use less energyto manufacture,and don’t
require toxic batteries or motor oil (Bike to Work Day, 2014). Bicyclingisan easy and funwayto help the world, andmore and more people are buying
into this hobby. The advantage this providesfor the Stay Tuned marketing campaignis that businesseswill be inclined to partner withan effort that will
not only benefit its employees, but the worldas well; at the same time, improving the overall image oftheir company.
Biking to workwouldnot only improve an individual's health andwallet, it wouldalso give the entire countrya mustneeded boost, byhaving
more bikes andfewer carson the road. JoeFriel, a nationally knownpersonal trainer and authorgoes overthe health benefits ofcycling. These benefits
include promotinga healthy heart, improving bloodchemistry, lowing blood pressure,decreasing the risk of cancer,buildingstronger bones,promoting
greater muscle strength, reducingstress, anddecreasing chronic pain.
27. LightfootCycles explains the economic benefits ofbicycling. Unlike automobiles, there are very few ongoingcostswith getting aroundon a
bike. The Canadian AutomobileAssociationcompared the costofbiking andthe accessoriesthat go along withthat, to the costof justusinga car. It
was estimated people wouldhave an additional $5,000 -$6,000peryear. Employees whobike to workare also reportedto be on time andtake less
sick days. “Some studies have shownthat businessesthat encouragestaffto cycle towork benefit fromincreased productivityas a result of
improved fitness and mental health” (www.experienceplus.com).
Healthy lifestyles in the United States and aroundthe worldhave broughtchangeto even the “unhealthiest” offast foodchains.Accordingto
an article bythe New York Times, McDonaldsis adding to its menu, whichis knownforits fats and carbs,to offersome light optionsofsalads along
with their meals. It is part oftheir plan to matchthe growingpopularity of this new lifestyle. In organizationwith the Clinton Foundation,McDonalds
is striving to curbobesity in today’s youth. “Customerschoosingoneof its “value meals,” whichtypically include a sandwichorwrap,Frenchfries and
a drink, will have the optionof havinga side salad or a piece of fruitor a vegetable in lieu ofthe fries.”(nytimes.com2014) Thisnew trend which
McDonaldsis setting will further enhanceand reinforcethe idea behind usingbikes to provide a heathy and greenway to commute.McDonaldsis
helping to upholda high standard ofpublic health and wellness whichwe canall learn andbenefit from.
25
28. 26
AARP claimsthat there is an increase in employers providinghealth carefor employees. “...employer spendingonemployees escalates…”
(AARP 2013) Companiesarecontinuingtopromote health to their employees. This should transition well into promotingbiking to work.With
employers wantingto keep employees healthy, they are most likely to promotebiking to work.
McDonald’srestaurants have beguna plan to incorporatehealthier options tocustomers as well. Many people view health in a high
importance and McDonaldsis satisfying that need. “Under pressureto provide healthier meals, McDonald’sannouncedonThursdaythat it wouldno
longer market some ofits less nutritional options to children andsaid it also planned to include offeringsoffruits andvegetables in many of its adult
menu combinations.”(Strom2013) Thiscorporationis recognizingthe need for a healthier lifestyle andis respondingaccordingly.
There are many advantages ofwrite-offsfor businesses.‘Tax write-offsare provided tobusiness ownersfor the purposeofpromoting
business activity. Write-offscover businessexpenses, depreciation of businessproperty and businesslosses’.
Write-offs cancoverentertainment expenses, litigation expenses, losses and depreciation, and lastly travel expenses.A travel expense includes
bicycle travel, whichis within our businessmarketing. This is an extraordinary write offbecause a bicycle will last longerthan most write offs,it
improves health, and employees save financially by commutingona bicycle. Tax incentives help businesses give back totheir communityand bring a
unity within the workplace.
29.
30. primary research
Alongwith the secondaryresearch weconducted,ourgroupalso set to the streets in searchof primary data. We asked a variety ofpeople
walking aroundBellevue Square Mall if they wouldlike to have a bike service be offeredby the companythey workfor (See Sample Surveyand
Survey Results in Appendix).Wefoundmostpeople to like and supportthis idea stating they wouldlike their companyto offera bike service. We
discovered that a lot ofthese people were in the age rangeof 25-40.Thisdata is in supportofour marketing plan ofreaching outto local companies
and offeringto tunebikes in the month prior toNational Bike Month.A lot ofthe people weasked also consideredphysical fitness to be an important
role in their lives.
With the rise in interest to live healthfully, many corporationsare movingtowards providinga means for their employees to be healthy. Many
companies bothlarge andsmall providehealth care. Manycorporationswill be likely tofix upan employee's bike for“Bike to Work Week” because it
will providea taxwrite-off,please employees, promote health consciousness,andpromotehelping the environment by notusing as muchgasoline.
Based offofthese findings,it is expected that a majorcorporationwouldbe willing to encouragetheir employees to participate in “Bike toWork
Week”, as well as get their employees’ bikes tuned up.
28
33. tactics& implementation plan
31
Tactics >>> Contactingbusinessesviaemail and phone. We will use aneye appealing html email to contactthe businesses.
Product
Bike tune upswill be performed in the month ofApril, oncethe companies have agreed to use the service fortheir employees. The bike tune upis the best
available. All partsare checkedforwear and tear. Frame is cleaned andcheckedfor cracks.Wheels are truedand cleaned in a parts tank. Cassette and
chain are cleaned and lubed. Brakes are adjusted.Frontand Rear shifting is checkedand adjusted.Derailleur hanger alignment is checked.All bearing
assemblies are checkedand adjustedif necessary. All bolts are checkedfor correcttorque.Tires are inflated to correctpsi.Bicycle is test ridden.
Price
The businesses will coverthe costof the tuneups. Eachtune upis $80.Althoughthere is an initial cost tothe businessforeach participant, there is a tax
write offafter, making it nocost to them. All formsof communicationwill be over email, by calling, or by faceto faceinteractions.
Place
We will be contactingthe businesses throughMr.Mikhaylov’s email and phone.Ourimplementation location will be his shop,but wemay also meet with
management at the specific business locations, if giventhe opportunity.
ImplementationPlan >>>
By sendinghtml emails and make phonecalls to each companyand followingupwith additional information as needed. Persuadingthe companies tojoin
througha competitive and quality service for the employees will in turn benefit the company.Intended businessesto be contactedinclude butare notlimited
to Amazon,Coca-Cola,Starbucks,Safeway,QFC,Eddie Bauer, NorthwestUniversity, City Council,Pokemon,andCostco.
If the campaign does notgo as planned and wedo not have a businesssigned up byThursday November 20thwe will runlocal print advertisements to be put
upin local gyms.Gyms with a spinningprogram are preferred.
Ifany business signsup forourtune-upprogram we will continueto pursuemore businesses, as well as set upan email to be sent in March(right before April)
reminding them ofthe program.
34. tracking & evaluation
32
Because our campaignis marketed towards a much larger group of individualsas
a whole, trackingwill be quite simple. Progresswill be tracked by the amount of
commitmentsfrom businesseswillingto participate. If our goal of one businessis
not met by November 20th we will run print advertisements in localgyms.
We will measure successof the marketingplan by havinga list of the number of
companieswho are willingto use the tune up program. Our goal is to have at least
one new companyinthe tune up programby the end of the campaign.Our
successwill be based on our finallist of companies,and whether we achievedour
goal of one company’scommitment.
35.
36. appendixSurveyResults
Gender Age Employer Value Fitness Weekly Exercise (hrs.) Utilize Service?
Male 0-25 Albertson's Yes 4 No
Male 26-35 Olive Garden Yes 6 No
Male 26-35 Crate and Barrel Yes 5 No
Female 0-25 Starbucks No 5 No
Male 26-35 ValleyMedical Yes 7-8 No
Male 26-35 Major Bank Yes 7-8 Yes
Male 26-35 Microsoft Yes 3-4 Yes
Male 36-45 Self-Employed Yes 6 Yes
Male 0-25 D'ambrosio Gelato Yes 5-10 Yes
Female 36-45 Microsoft Yes 6-8 Yes
Female 0-25 Personal Touch Demos Yes 10 Yes
Female 26-35 MOTF Yes 4 Yes
Male 0-25 Unemployed Yes 1 Yes
Male 36-45 Microsoft Yes 5-6 Yes
Male 26-35 WildeRover Yes 8 Yes
Male 26-35 Starbucks Yes 5 Yes
Male 26-35 Microsoft Yes 4 Yes
Male 26-35 Microsoft Yes 0 No SampleSurvey
Male / Female
0-25 26-35 36-45 46-55 56-65 66-75 75-85 85+
Who do youwork for? ___________________
Do you value general fitness? Yes / No
How many hours a week do you exercise? ___
If this service was provided byyour employer,would you utilizeit?Yes / No34
37. bibliography
ACS: BikeCommuting Continues to Rise | League of American Bicyclists.(n.d.). Retrieved from http://bikeleague.org/content/acs-bike
commuting-continues-rise
Biketo Work Day. (2014). Environmental Benefits. Retrieved October1, 2014, from
http://www.youcanbikethere.com/content/environmental benefits-0
Economic Benefits. (n.d.). Retrieved from http://www.lightfootcycles.com/benefits-of-biking/economic-benefits/
Rappa, F. (n.d.). TheAdvantages of Write-offs for Business Owners. Retrieved from http://smallbusiness.chron.com/advantages-writeoffs
business-owners-22190.html
SeattleDepartment of Transportation:SeattleBicycleMaster Plan. (n.d.). Retrieved from
http://www.seattle.gov/transportation/bikemaster.htm
Strom, S. (2013, September26). With Tastes Growing Healthier,McDonald’sAims to Adapt Its Menu. Retrieved October01, 2014, from
http://www.nytimes.com/2013/09/27/business/mcdonalds-moves-toward-a-healthier-menu.html?_r=0
The Health Benefitsof Bicycling |Experience Plus. (n.d.). Retrieved from http://www.experienceplus.com/blog/?p=232Health
Wellness Programs Keep Workers, Businesses Healthy - AARP. (n.d.). Retrieved from http://www.aarp.org/work/employers/info-06
2013/wellness-programs-keep-workers-healthy.1.html
35
