Analysis of a Marketing Plan
Analysis of a Marketing Plan
FreeRiders Inc’s mission is to generate custom bicycles of high quality in the United States of America. The company is in the manufacturing industry, and its mission statement defines it; it aims at manufacturing high quality bicycles that appeal to its clients. The company generates a significant amount of revenue from the sales of high-end mountain bikes. This implies that the mission is aligned with its targets, hence define it. FreeRiders Inc’s mission statement defines its products; each bicycle the company produces is hand-made in its machine shop, in Massachusetts.
Marketing Objectives
FreeRider’s marketing objectives are realistic but not measurable. The company aims to participate in local events, in the United States and Canada. This is realistic, but the company does not provide for a metric, which it will use to measure the outcome or how much of this objective has been achieved. A measurable marketing objective is one where the outcome is subject to a given metric to assess its success (Cohen, 2006). According to the set marketing objectives, the company will give their clients an opportunity to design their bikes. The company will also provide bicycle shops with free products; each shop will receive five to fifty bikes to give to their customers to sample. This objective is realistic because it will enhance the relationship between FreeRider Inc and its customers. The objective, however, is not measurable; the company has no way to find out if this goal will increase the company’s revenue or market share. In addition, FreeRider’s marketing objectives are not time-specific.
The marketing objectives set by FreeRider Inc integrate different marketing efforts. The principal aim of integrated marketing is to complement the impacts of different marketing techniques (Belch, & Belch, 2001). The company’s objectives have integrated mass-marketing, direct marketing, and one-on-one marketing. Mass marketing will be achieved through its participation in local events, in the United States of America and Canada. Direct marketing will be attained through the issue of bicycles to various bike shops, while one-on-one marketing is achieved by giving bicycle users an opportunity to design a logo for their bikes. This shows that FreeRider’s marketing objectives indicate integration of marketing techniques.
The set objectives serve as motivators for FreeRider’s employees to strive at manufacturing custom bicycles that cope with the competition in the market. Given that the company’s major source of revenue is the sale of these bicycles, the employees should become vigilant in their production techniques so that the products they make generate surplus revenue. The company can channel this surplus to marketing so that it achieves its objectives.
Situation Analysis
FreeRider’s marketing plan identifies the company’s internal strengths and weaknesses. Some of its internal strengths are an efficient communication network and low labor costs attributed to no employee turnover. The company’s internal weakness is high pricing; their lowest-priced bicycle retails at $1500. FreeRider’s external opportunities include an impending long-term demand following an authorization of federal expenditure on bicycle paths, and potential for growth through an increase in athlete sponsorship programs. FreeRider Inc also has an opportunity to expand its business following global warming awareness programs. These programs will encourage cycling as an environmental-friendly transportation mode.
The company faces external threats such as a damaged reputation that may arise from scandals associated with athletes. Such a scandal would be doping, which damages the status of a sponsor (Shilbury, Quick, & Westerbeek, 2003). Retailers such as Wal-Mart have lowered their prices for consumers; these retailers have put pressure on suppliers to reduce their wholesale prices. This is a threat to FreeRider Inc because it sells it bicycles at high prices hence may reduce its customer base if Wal-Mart declines its products. FreeRider Inc, despite the external threats, has a competitive advantage in its production label, which is ‘hand-made’. The Baby-Boomer generation, for example, favors the company’s products because they are hand-made and green. This promotes the company’s sales over its rivals.
Marketing Strategy
FreeRider Inc targets the males aged between sixteen and thirty-five, who are professional cyclists or racers; this is its primary target. The company’s secondary target market comprises athletic males aged between twenty and forty-five, whose preferences are socially responsible and premium brands. FreeRider’s marketing mix comprises a product, distribution, promotion, and price strategy.
The company’s uses various bicycle attributes as the basis for its product mix. The quality, speed, customization, and business ethics employed in their manufacture are its product mix. FreeRider Inc distributes its bicycles through a website, and various bicycle shops in Mexico, the United States of America, and Canada. Products purchased through the website are shipped to customers through various courier firms. FreeRider’s marketing team attends cycling and sponsorship events as their promotion strategy. The company aims at expanding promotion using the media in the future. FreeRider prices its bicycles depending on its features; a customized bike retails between $5000 and $10000. Premium consumer bikes are sold for a minimum price of $1500.
Summary
FreeRider Inc’s marketing plan is not effective because its marketing objectives are neither measurable nor time-specific. FreeRider faces the threat of competition, especially on pricing. This is because its bicycle retail prices are high when compared to rival companies. The marketing plan does not provide the procedure the company will take to offset the loss in revenue it may incur, in reducing bicycle prices to $350. The marketing plan should involve such procedures and should incorporate time schedules and metrics for assessing the objectives.
Marketing plays an integral role to the achievement of the goals set by an entity (Cohen, 2006). It generates a guide for an organization to follow in the course of promoting its brand. Marketing also integrates various aspects of an entity such as its financial and production capabilities. Forecasting is a fundamental policy for any business; marketing helps a company forecast the outcome of promotion efforts, for example, in terms of sales (Belch & Belch, 2001). It also helps a company align its finances with forecasted achievements. The role of marketing is crucial to an organization’s success because it aids in pricing products; marketing efforts assist in the assessment of competitor behavior, hence appropriate pricing strategies.
The lessons learnt from this project have prepared me for my career in entrepreneurship. I have learnt that successful entrepreneurship is achieved through efficient marketing plan. A marketing plan should accommodate objectives that are measurable, time-specified, and realistic. The plan should also highlight strengths and weaknesses as well as opportunities and threats of the enterprise. These lessons will propel me towards successful entrepreneurship.
References
Belch, G. E., & Belch, M. A. (2001). Advertising and promotion: An integrated marketing communications perspective. Boston, Mass: Irwin/McGraw-Hill.
Cohen, W. A. (2006). The marketing plan. Hoboken, NJ: J. Wiley & Sons.
Shilbury, D., Quick, S., & Westerbeek, H. (2003). Strategic sport marketing. Crows Nest., N.S.W: Allen & Unwin.
