Analysis
[Author Name]
[Institutional Name]
Abstract
The Mikesbike is a advanced simulation software that helps to manage all the functional area of the company. The company’s total management data base can be viewed in the mikesbike software. It also acts as an interaction tool that helps to lean all the management strategy. The mikesbike is used for decision making process product, firm; finance and production are the key areas of decision making. The simulation software is used for the complex analysis in business and also it is used to take future financial decisions. The price of the software is comparably low. The Real Cool Cycles is a firm that is having huge market values in the business. The Reel cool cycles are using this software to take major financial decisions in their firm. The all the departments of the Reel Cool cycles works well to hold more profit in the market. The report is based on the analysis of various internal and external factors of the real cool cycle and its market value. The internal factors like brand awareness, advertising, support to distributors and external factors like distributing to wrong stores, public pr influence and product awareness needs to be analyzed. The real cool cycles are one of the leading cycle manufactures in the market. The departments are assigned duties the motto of this paper is to analyze the company performance on internal and external factors.
Keywords: Mikesbike, the Real Cool Cycles, Decision making, analysis, and market value.
1. The Internal Factors
- Brand Awareness
The total expense for brand awareness is $100,000, and the fair cost that has bought the brand to some of the places. The average numbers of people are aware of the brand. The customers are increasing day by day. About half of your brand awareness will carry over from the previous period. The present and previous data shows that the increase in brand expenditure will certainly increase the brand awareness. The current spending $100,000 has increased brand awareness to only 40% and it is recommended that the expenditure has to be increased to more than $100,000 to increase brand awareness to above 50% and even more to cover the lot of customers. The analysis tells that the brand awareness needs to be increased in a large way. The success full brand awareness depends on brand image. The expenditure on the brand awareness needs to be increased more than the estimated price, so that it is possible to cover customer up to the satisfied level. The attractive brand name should be attractive the current brand name of the product is more sufficient to attract the customers.
- Advertisement
The advertising is the major tool to attract more people in the market. Every corporate is giving much importance on advertising. The simulation data shows that the expenditure for advertisement is $800,000 needs improvement. The real cool cycles share holder value is comparably low when compare to the mountain top cycles. The awareness value of real cool cycles is decreasing year by year. The market summary reveals that the awareness of real cool cycles is only 11.08% when compare to mountain top cycles which is 22%, as a result of less advertisement methods the product sales gets reduced in real cool cycles corporate. The TV advertising is only 40% and internet advertising is low about 10%. The TV advertising needs to increase to above 55% and internet to 40%. The advertisement given to magazine is 50%, Try to reduce advertising in magazines and maintain less than 20%. Now a day’s peoples are giving more importance to social media in the internet and the TV. It is important to reduce the advertisement in the magazine. The advertisement needs to be increased more than $800,000, so that real cool cycles can improve its revenue. The real cool cycles are moving well but it is needed to increase the marketing. To make the product reach all most all the needed places.
- Supports to Distributors
The current bike shop distributors are 73, the extra support given is $100,000 and the retail margin of the product is 50.0% the current distributors are performing better. The real cool cycle’s product is in demand it is recommended to increase the distributors so that the products will move quickly without any delay. The allocation of bike store distributor is recommended to 120 numbers. The departmental store distributor is 152, the extra support given is $50,000 and the retail margin is 50% the departmental distributors are fair and it needs to be improved. The bike store distributors are performing well there is no need for extra care to be taken on them. The maximum allocation for the departmental stores is 300 and for bike stores are 120. The bike stores are much important than the departmental stores. The maximum allocation for the departmental stores should be increased and the bike stores need to be maintained considerably. The company has to maintain good relationship with the distributor it is necessary to avoid wrong distribution of the product. The wrong distribution will certainly has an impact on sales.
The internal factors like brand awareness and advertisement needs to be increased, the lack in this two internal factor affects the sales when compare to other corporate in the same market. There are lot of internal factors that holds the investment of the company, the lot of money has been spent in the design process, then to the liability at the same time advertisement should be given more importance to have good revenue.
2. The External Factors
The external factors are responsible for making profit from the customers. The external factors have a large influence over the company’s business structure. The more importance is given to the external factors like product awareness. The product awareness is to be given more importance to make the people to reach.
2.1 Distributing to Wrong Stores
The bike shop distribution needs to be improved; the distributing to wrong store will further reduce the sales of the product. It is necessary to maintain the correct distribution to all the stores without any delay. The departmental shop distributors need to be improved to increase the revenue. The distribution sector in a corporate has more influence on the timely sales. The distributing to the wrong stores certainly influences on the sales and it will certainly affect the sales.
2.2 Public PR Influence
The PR expenditure is $500, 000 and the Public Relation expenditure needs improvement. The 20% is spent for TV adds. 10% is for internet ads and over 70% is spent for magazines ads. The PR influence on the public is very low it needs some modification that most important mode of advertisement is to be given to TVs and internet. Many people in this world are the frequent users of internet and TVs the percentage of TV and internet is to be increased to 80% and magazine advertisement needs to be reduced to less than 20%. The PR influence of other corporate is more. The awareness of the product among the public is low. The PR expenditure needs to be improved. The much publicity will helps to reach much customers, the publicity is much powerful than advertisement. The awareness level is just 11% is it is needed to improve the public relation expenditure to increase the awareness, but at the same time expenditure on TVs and internet mode should be given more importance to cover the large number of customers. The Public PR influence is better but it has to be improved more to reach more customers.
2.3 Product Awareness
The product awareness is low only 9.35%. The product awareness is depends on effective advertising. The advertising expenditure is to be increased gradually. The TV advertisement is only 40%, internet is much low as 10%. The TV and internet are the much power full too. The TV advertisement is to be increased to more than 55% and internet advertisement is to be increased to more than 50%. Please try to reduce the advertisement in magazines and give importance to TV and internet. The publicity needs improvement. The mountain top cycles brand awareness is more compare to the real cool cycles. The increase in awareness will certainly increase the sales. The product awareness should be given more importance. The marketing holds the major effect on sales. The advertisement has the great impact on the product awareness. The advertisement on TVs and internet mode should be increased gradually to increase the product awareness. The current product awareness is just less than 10% which affects the sales of the particular product. The mountain top cycles are giving more importance to the product awareness. The product awareness has the direct influence on sales.
The average amount of sales in the real cool cycles is $5,243,650. The sales are better, real cool cycles are welcomed by the people, but some marketing methods to be reconsidered to attract more number of customers. The mountain top cycles holds much revenue because of huge investment in the market. The shareholder value is 13.38 which is the considerable amount of value, which is the considerable amount and the profit to 2, 186, 917. The targeted production units are 15,000. The market share of real cool cycles is 50% which is improving day by day. The net income of the company is good and it can be improved further by improving some factors. Some internal factors are given less importance and its need to be taken care, so that it is possible to improve the income. The finished goods warehousing is spent up to $77,750 it can be reduced. The PR expenditure should be maintained but the modes of advertisement like TVs and internet should be given more important. The company product awareness is just 9.35 % which needs larger improvement to improve the revenue of the company. The company expenditure needs to improve to have more sales.
