Google Bike Marketing and Market Research and Analysis - Essay Example

Our current market research indicates that a 20-inch wheel diameter is not comfortable with the majority of the rides; hence we will stoke bikes with wider wheel diameters to beat our competitors. Further, our bikes will cost relatively low for the first years to attract more customers as we brand our company.

Market Research And Analysis
Our store will be located in Dallas and California among other mountainous regions. This would help attract more customers. Our team conducted comprehensive market research and the findings will be applied in making major decisions. The company will stock bikes with wider diameter wheels for good speed and comfort. Currently, our competitors are stocking a 20-inch diameter wheel, and this is not appreciated by the customers. Customers complain of carrying a huge amount of cash to such stores in major parts of the US, hence, will incorporate Visa services to enable easy and comfortable transactions.

A good number of US citizens suffer from obesity and respiratory complications due to a lack of sufficient exercise. Google bikes would provide them with a good opportunity to burn some calories and maintain good health. The majority of US citizens prefer cycling or walking to work places due to several reasons like expensive fuel, environmental conservation strategy, and enjoying the natural weather among others, hence the company will stock quality Google bikes with comfortable designs at affordable prices to workers or individual who prefer cycling to drive to workplaces (Abrams, 216).

There is an increasing trend of collages establishment, this would mean an increased number of students who prefer cycling to school, thus increasing demand or market. Our competitors are prone to running out of stock more o during summer or other holidays. Our company will adopt a supply chain that ensures that orders are made in good time to limit chances of running out of stock, customers are always turned away whenever they visit any store only to realize their preferred item is out of stock. Our biggest competitor will be Mashable Company whose bikes are expensive and uncomfortable since they come in 20-inch wheel diameter.

Financial Plan
The latest Good ride financial report indicates that the company made a net profit of about $ 3 billion in the year 2012, from the sales of spare parts. To venture into the Google bike business, it is estimated that a total of $ 2.5 million will be needed. The company financial team has done the financial analysis and ascertained that the company will employ both equity and debt capital. The equity capital will see the company raise about $ 1.5 million from its asset fluidification or previous profits. The debt capital would see the company seek about $ 1.0 million loan from regional or national banks among other loaning institutions. It is estimated that the company is likely to make an annual net profit of $2.0 billion from the sale of Google bikes. The company will use 0.005% of the profit to settle the loan, however, the company will seek more loans to further expand the business while repaying the current loan, but all this will depend on the customers’ turnout.

Economics Of The Business
Currently, there is a good demand for Google bikes from the increasing trend of colleges’ establishment, rise in fuel prices and increase in outdoor activities like picnics, bike riding, and bike rides among others. The good ride would take advantage of its competitors’ weaknesses, for instance, it would ensure it does not run out of stock and sell its products at a relatively subsidized price compared to its competitors. It is estimated that the company would sell about 50 bikes per week. Each bike would go $120, while our competitors sell theirs at $ 150. The company financial planners have however predicted that it may take about 5 months before such sales are made.

Marketing Plan
The company will use several strategies to market or popularize Google bikes. First, it would conduct a road show with a public address system to advertise the product. Secondly, posters with product portraits will be posted on major corners of the streets as well as in colleges to attract more customers. The company will set aside about $50,000 to cater to the campaigns and advertisements. Media companies will also be engaged in efforts to popularize the product (Bangs, 119).

Design Plan
Our bicycles will have more than 20-inch diameter wheels for improved comfortability. It will also have tubeless tires for easy maintenance. The company will stock bikes with adjustable saddle bars, this would ensure comfort and suitability, more so in hilly or mountainous regions.

The company is likely to suffer some setbacks, for instance, demand is likely to drastically reduce during winter; which will call for low sales. The company is likely to have difficulty in settling its loan due to unstable commercial bank rates. However, the company assumed that it would be awarded more loans without necessarily clearing the initial loan, for business expansion. The company is also likely to be disadvantaged by completion from existing or operating companies offering a similar product. However, the company will make remarkable sales and prosperity despite all the risks and problems. Read More