MARKETING PLAN FOR MOUNTAIN RIDERS Executive Summary

MARKETING PLAN FOR MOUNTAIN RIDERS

Marketing Plan for Mountain Riders
Katherine Druin
Marketing 500
Professor Colbert

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MARKETING PLAN FOR MOUNTAIN RIDERS
Executive Summary
Mountain Riders is a biggest wholesale distributor which is serving the individual user as well as
the retail bicycle industries of Louisville. The company has employee strength of 500 which are
continuously working to make product offering innovative and effective. Company offers a wide
range of high end mountain bikes, BMX, Triathlon, Touring Bikes and accessories of world’s
top most brands like Ibis, Niner, Orbea, Pivot, Santa Cruz, Yeti etc. As prices continue to rise,
company’s occasional and seasonal discounts and special deals are attracted people to finding
good deals. Increased number of applications submitted to University of Louisville and other
colleges as per March 2014 issue of The Educational Times and current market trends showing
the great profit for Mountain Riders to achieve their targets. Expected profit will reach to $70000
by this year.
Environment Analysis
Economic Analysis:
The national economy has been strong and gaining momentum for the last two years. The local
unemployment rate has been hovering at around 6.4%, a relatively low level, for two years. Most
experts featured on the High Street Panel in the March 2014 issue of Economic Trends Today
forecast stable and increasing corporate earnings. On the city level, Louisville continues to
experience rapid expansion and prosperity. Being one of the most populous cities in United
States it has become more business focused. The younger generation has especially taken interest
to the Louisville. According to the March 2014 issue of The Educational Times, the average
number of applications submitted to University of Louisville and other colleges in Louisville has
increased by 10% over the last year. The increase is expected to rise more over the next five
years.

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MARKETING PLAN FOR MOUNTAIN RIDERS
Legal and Political Analysis:
Like every outdoor sport the sport of by-cycling may cause many type of injuries if safety
instruction were not followed. Several bike stores have faced many cases in recent years. In these
lawsuits the percentage of child injuries are higher than the other reasons Mountain Riders
believes its current full service approach and emphasis on safety gear provides protection from
potential suits related to safety. In the past years many states have passed legislation requiring all
bikers to wear head gear and the trend seems to be increasing. Mountain Riders is an outspoken
supporter of head gear legislation. To promote this Mountain Riders offers safety gears at a
relatively low price.
Competitive Analysis: The major competitors are:
Ride High: This is a state level distributor having several warehouses across the state.
Ride high sells high end mountain bikes and dirt bikes; however these sells are very small
part of their business.
Winder Co.: This is a high end bike national wholesaler but they have only one
warehouse in the state.
Socio-Cultural Analysis:
In the last years a definite awareness towards outdoor sporting and environmental issue like
global warming has emerged .With this increasing awareness of the physical risks associated
with stress, more and more people are getting involved in outdoor activities. Biking has become
a popular means for accomplish both the physical fitness and reducing global warming ,a
secondary source for local transportation, and a way for the average person to get involved in the
thrill of sporting competition. The biking trend has seen a favorable increase over the last years
and is broadening to include new market segments, such as the female market. A recent market

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MARKETING PLAN FOR MOUNTAIN RIDERS
analysis has shown that the bikes are getting popular in all age groups. With the ongoing
enhancements to the design and comfort level of bicycles, retailers are keeping their eye on these
new market segments.

Technological Analysis:
The design of high end bikes is constantly evolving. The designers and suppliers in the biking
industry continually survey and fulfill the market’s needs; the biking vendors endeavor to keep
up with the improvements in biking design. The outcome of these efforts is lightweight handling,
comfort, fast speed and better performance bikes. These technological advances affect both the
low and high end bike lines which keep the price variance constant Mountain Riders just in time
(JIT) inventory structure is a direct result of the ongoing technological advances in the industry.
The fewer inventories they have, the less they will find it necessary to discount prices to sell
obsolete merchandise.
Primary and secondary target markets for your company. Be sure to cover the 4Ps, 5Cs
and STP.
Primary and Secondary Target Markets:
There are two segments of the market which Mountain Riders will be targeting on:
1. University and college Students:
These are under graduate and college students, they will ensure at least constant 25%
turnover. There is a new enthusiasm seen among them for feature rich high end bikes
2. University/college professor and daily commuters:

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MARKETING PLAN FOR MOUNTAIN RIDERS
The group of the professor and teacher is small but the group is pretty stable, on the other
hand there are daily commuters but the both groups want a bike which looks decent and
comfortable for daily use, these groups look for personalized service.
Positioning: Mount Riders is the only bike shop in the city that takes care of the students as well
as daily commuter and professors/teachers, through discount programs, student financing,
recycled packaging, sales promotions and colored employee shirts in the university colors,
Mount Riders will succeed in its endeavor to be the shop of choice among students and
professors/teachers.
Segmentation: Segmentation is the marketing concepts in which market places are segmented
into the parts and Mountain rider have the marketing strategy for each segment of the market.
Each market segment has some unique opportunity and need some specific effort to settle
business in particular market segment. For the effective business it is required to make the
segment centric marketing approach to offer something lucrative for customer in each market
segment.
Products Offered: Mount Riders provides a wide range of brands for high end bikes for both the
university persons and daily commuters. These brands are mostly demanded and recommended
by the professional bikers. The brands currently offered are:

Ibis

Niner

Orbea

Pivot

Santa Cruz

Yeti

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MARKETING PLAN FOR MOUNTAIN RIDERS
Pricing: Considering both the targeted markets the bikes are offered on reasonable prices .The
price range for the bikes is $250 to $550, depending on the quality of the bike and accessories
ranges from $9 to $99. The customer has an option for one year financing at 15% finance charge.
Promotion: Mountain Riders’ promotion efforts include monthly newspaper ads (local and
university), radio spots on local stations, print advertising in the brochures and flyers which are
housed in the student union on campus and distributed to student mail boxes.. To better reach the
increasing number of students, Mountain Riders would like to expand their efforts by creating an
Internet web site (which is a cost effective way to reach a large number of customers). Seasonal
biking events will be organized from time to time to promote the bike riding.
5C’s Concept of the marketing: 5C’s concept of marketing is customer, company, context,
collaboration and competitor. Each marketing strategy should be based on the customer centric
approach in which dedicated group of customer should be targeted to achieve the high market
share. Marketing strategy should be based in the collaboration, and when any good business
opportunity come by the collaboration then company have to grab it to create the business. In
marketing strategy competitor offering and competency should be taken care so that a better
product than the competitor can be offered to its customer.
Performance analysis with set benchmarks of 50% to 75% per annualized plan
Metrics
Website visitors
Increases in market share
Tracking downloads of
Website content
Margin

50% Benchmark
100000
4%
75000

75% Benchmark
150000
6%
125000

20%

30%

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MARKETING PLAN FOR MOUNTAIN RIDERS
Above statistical analysis of the Mountain rider bikes is based on the marketing strategy of the
company. Target of the Mountain Rider bikes is achievable due to its strong market analysis
based on the market scenario and customer centric approach of the marketing.
In terms of the qualitative approach Mountain Rider need to incorporate the quality
product I its portfolio with the engagement of customer in the process. Customer can freely
provide its feedback and suggestion to company so that it can take care of their suggestion and
provide the effective product to our customer. Mountain bike Rider need to make its website
capable enough to provide the effective information about its product portfolio and user can
easily download the product broacher for the effective information about the company and
product.
SWOT Analysis
The following swat analysis captures the key strengths, existing weaknesses, opportunities and
possible threats that may be faced by Mountain Riders.
Strengths:

Having strong and good relationship with manufacturers, which may result in
negotiated distribution deals?

Staff that are well trained and have appealing looks which promotes enthusiastic
biking.

A wide range of high end mountain bikes.

Offers limited time maintenance on the purchased bikes.

Offers excellent customer service and training manual

Only store in the city which offers customization of the bikes as per customers’
needs.
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MARKETING PLAN FOR MOUNTAIN RIDERS

Store is located in the center of the city which results in increase of foot traffic.

Weakness:

Prices of high end mountain bikes are relatively high

Being a seasonal business, sales may not be linear and may experience up and
downs throughout the year.

Predicting which product has a higher rate of sale if difficult.

Opportunities:

Increasing trend of environmental awareness and active life style.

University of Louisville is just 2 miles away from the store.

Most of the industries are affected by the nature of the economy and bike industry
is no exception but the economy doesn’t impact the sales as there are many people
who will ride bikes regardless of the economy.

Profit margins can be increased by spreading the fixed cost over a large area as
sales increase.

Threats: Below are listed some threats which can hamper the business opportunity of the
Mountain Rider Bikes

Online retail store and catalogue sales

Pressure from large discount chains

A new trend where the manufacturers show interest in selling their products directly to
mail order houses instead of selling them to wholesalers.

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MARKETING PLAN FOR MOUNTAIN RIDERS
Company introduction and Mission Statement
Mountain Riders is new edge bicycle distributor which offers high end mountain bikes, racing
bikes and all the accessories. Company also offers customized bicycles as per customer
requirements. Mission of Mountain Riders is “To provide high quality cost effective bicycles that
provide value to their customers and to educate and motivate them for the safe use of bicycles as
a viable, affordable and eco -friendly means of transportation and personal fitness within
society”. Purpose of company is to make this world healthier and pollution free day by day.
Positioning Statement of Mountain Riders
“Mountain Riders is an experience and innovative bicycle manufacture and provider that offer
wide range of bicycles for all age group and to generating awareness towards the effective use of
bicycle as a safe transport mean. Mountain Riders is the only company that is offering the
customize cycles to their customers as per their need along with two year service and part
repairing warrantee”.
Company offered a new commuter specific bike in market for everyone. To achieve its starting
goals, Easy Ride for Every One, company will need around 1 year to make bike available for
everyone in Louisville and to target each university. After that proper evaluation of sales will be
done to measure the success, to find out scoop of improvement and feedback will be shared with
bike manufactures.

Branding Strategy for Product
Latest offering of company is Commuter Bicycle with all the advance features including fenders
and braze ons for bike racks. Mountain Riders will be used as brand name and slogan will be
“get a commuter Bi CYCLE… gets more out of your Life CYCLE. The brand extension is

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MARKETING PLAN FOR MOUNTAIN RIDERS
used as name given to the bicycle is “Bike for all”. Company added a slogan “Ridding to The
Future” for branding of this product.
“Drive and Burn your fat”, “Ride with pride, save environment”, “Ride cycle daily or Stay Ill”,
“You Healthy, We Happy” are the few tag lines through which company will show its vision and
will connected to the all students and other customers.

Marketing Strategy of Mountain Riders
“The aim of marketing is to know and understand the customer so well the product or service fits
him and sells itself”( Peter Drucker).
Company will target these two segments.
–

Individual customers – Those who use exercise cycles and high end ride bike for
adventure trips

–

University/college students and daily commuters – Daily commuters and college students
who travel daily to their offices or college will go for decent looking and affordable bike.

4 P’s of Marketing – In order to make sure product gets sold, Company will promote their
quality commuter cycles as a must have product in reasonable price. Main targets are individual
customer, students of universities and daily commuters. The price range for the bikes is $200 to
$350. To attract students an option for one year financing at 10% finance charge will be given.
Company will use all source of online marketing like promotional videos, Advertisement on e –
commerce sites, NEWS sites, social media, flash sales, YouTube ads and

search engine

optimization (SEO) techniques to promote its. Ads in print media, Flyers, Banner will be used to
do the local marketing.

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MARKETING PLAN FOR MOUNTAIN RIDERS
Mountain Riders will also organize a cycle racing competition with collaboration of University
of Louisville to promote cycling in the area.
Along with above marketing medium company will use below innovative ideas to identify their
customer and to reach them directly.
Effective Market Research – “Market research feeds the knowledge base of an organization
whether it is a commercial one or one that is not for profit”( Callingham, 2004). Company will
use market research as it focuses on understanding the customer, the competition and the features
of required product needed to customers. Few surveys are Market Description, Market ProfilingSegmentation, Customer Intention – Purchase Analysis, Customer Attitudes and Expectations,
New Product Concept Analysis, Habits and Uses Survey.

Customer’s Social Profile – Marketing strategy will include normal person’s personal profile
(on Linkedin, Facebook and etc) to gain information about the customer’s behavior, interest and
customer requirements and current trends. “You can really get to know his or her needs through
social listening. It’s a great way to research a market and initiate conversation leading to a sale”
(Smith J., 2014). Company will directly will be able to send mails, offer, new products
information to students or professionals ones this database will be ready. “Once you have the
social profiles of your customer database, you can really take it to the nth degree” (Smith M.,
2014). As direct communication will increase the trust and understanding of customer, so
information for any enhancement if required will be available early.

By these techniques, company will be able understand their customers and their buying habits /
needs and will manufacture products as per market requirement and it will give an advantage

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MARKETING PLAN FOR MOUNTAIN RIDERS
over other competitors. Sell of products will increase and it will reflect in company profitability
and growth.

Appropriate Time to Implement this Strategy Mountain Riders is offering new commuter bicycle in market to target students and daily
commute professionals. As a phase 1, Company will implement this Strategy for marketing of
these products. “A marketing audit is an effective tool for both a marketer and an organization,
because it allows you to determine and evaluate the effectiveness of your company’s marketing
efforts” (Bennett, 2014). After 3 months company will do the evaluation of this with the number
of equipments sold in market, customer feedback about the product, is right customer targeted or
not , market value of company , demand of product. If Company will find any issue, it will
resolve that with the help of feedback, surveys and direct communications with customer. Then
Phase 2 will include the launch of new products with enhanced marketing strategy on the basis of
last quarter success. Customer experience for these products in first 3 months will be used for
further marketing, “The periodic strategic meetings should discuss strengths, weaknesses,
opportunities and threats (or SWOT). They can help executives determine if the strategy’s
soundness in light of changes within the organization, industry and economy” (Torres, 2014). It
will be making sure that all the quarter results are properly evaluated and appropriate steps are
taken to make sure company growth as a revenue basis along with high customer satisfaction
including innovative ideas for making Louisville health and fit.
Examination of Customer Behavior for the Product
Definition of consumer behavior is "The process and activities people engage in when searching
for, selecting, purchasing, using, evaluating, and disposing of products and services so as to

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MARKETING PLAN FOR MOUNTAIN RIDERS
satisfy their needs and desires"(Belch and Belch, 2007). Customer’s behavior of purchasing for
product depends on these points –
Company message about product – Mountain Riders is communicating with a great powerful
message of Riding to the future, to their customer. Their mission itself makes connection with all
customers irrespective of financial status or culture barriers. "Run to the FUTURE" inspires
customer to buy the product and make themselves healthy lifelong.
Evaluation with other competitor – Mountain Rider motivating their customer to buy as it is
offering innovative, cost effective and highly quality daily use cycle. Two competitors are Ride
High and Winder Co., both are currently focusing on high end bikes and sharing a smart part of
market.
Purchase decision- Before purchasing customer looks for past records and services offered.
Company has already offered bikes in high end segments for adventure trips those were well
appreciated in the students.
Experience of used product and feedbacks – As a promotional ads company is showing
existing customers experience about product and services. It will make a positive image about
the product in market.

Mountain Rider is offering their product after proper market research and promoting as a must
have products for customers, as a result High probability is there that customer will buy this
advance daily commuter bike to save money, environment and to keep themselves fit.

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MARKETING PLAN FOR MOUNTAIN RIDERS
References
Torres, J. (2014 ). 4 Steps to Successful Execution of a Strategy. Retrieved from
http://www.entrepreneur.com/article/237005
Smith, J. (2014). How To Use Social Media To Make Sales. Retrieved from
http://www.forbes.com/sites/jacquelynsmith/2014/01/10/how-to-use-social-media-to-make-sales2014/
Belch, GE & Belch MA 2007, Advertising and Promotion: An Integrated Marketing
Communication Perspective (7th ed.), McGraw Hill/Irwin, New York.
Callingham, M. (2004). Market Intelligence: How and why Organizations Use Market Research
(1st ed.). Kogan Page Limited.
Smith, M. (2014). The New Relationship Marketing.
Franses, P., & Paap, R. (2004). Quantitative Models in Marketing Research. CAMBRIDGE
UNIVERSITY PRESS.

Farris, P., Bendle, N., Pfeifer, P., & Reibstein, D. (2010). Marketing Metrics. Pearson Education.

McDonald, M. (2007). Marketing Plans: How to Prepare Them, how to Use Them (Sixth Edition
ed.). Elsevier.

A Brief History of the Mountain Bike by Jobst Brandt (A Brief History of the Mountain Bike by
Jobst Brandt). Retrieved from, http://sheldonbrown.com/brandt/mtb-history.html

Secondary Research – Mountain Biking Market Profiles. (2010).

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