Mountain Bikes Simulation

During the beginning of the simulation our company came out of the gates a little slow, but thanks to some key marketing as well as production changes, we were able to get our shareholder-value all the way up to second in our world. The approach we took was to specialize in the youth and mountain biking segments of the market, which gave us the second most awareness towards our products. Although the approach we used worked pretty well for us, I think offering another youth or mountain bike model would have vastly increased revenue. Will, Vince, and I turned out to be very good fits for one another, we were able to go through the simulation as a unit and make decisions based on the group input of everyone. Will was our unspoken leader, but …show more content…
The youth bicycle was successful, because it had no lost sales, while racking in a lump sum of income. Our mountain bikes weren’t as lucky as the other model, due to its numbers in sales lost, despite having a higher level of public awareness. The problem with our mountain model was the areas we selected to invest advertising into; if we had allocated more funding towards online advertising, I believe our number of sales would have increased, while our number of lost sales went …show more content…
We also are holding 22.6% of the mountain bike market as well as 16.9% of the youth market. Our company may only produces two types of bicycles, but they seem to be fairly popular amongst consumers. The first bike we offer is an affordable youth model and the second bike that we offer is a fairly priced mountain model. Hopefully in the future we’ll be able to expand into the road market or even further into one of our current markets by adding a new model or two. The pricing strategy was to keep the price either average or lower depending on the model; this strategy usually will lead to an increase in sales, which it precisely what we saw. As for where we ship our products to be sold, we primarily focused on sports and bike shops, while slightly focusing on discount stores. To promote the bikes we offer, we decided to move more funds to the magazine and TV sections, when we should have been investing in the internet to get the word out. The promotional mix we use has been tweaked here and there along the way, but one of the more notable adjustments was the decision to move funding from discount stores to bike and sport shops. Our strategy appears to have work out well so far, with a high SHV and the amount of the market we possess, it’s safe to said we’ve had a successful