Performance Review There has been a lot of change that took place in Quarters 5-8 for the company, TriCycle. We have officially opened more retail locations for business such as Buenos Aires, Marrakech, and Nantes. That gives us a total of store locations in six different cities, including the three locations we had open as of Quarter 4. Also, since Quarter 4 we have created three different bike brands. We have a children 's bike named Squirt, a mountain bike called Rocky, and a speed bike named Turbo. However, our bikes Turbo and Rocky were not available for sale at all of our retail stores because our market research informed us that there was no need for those products in certain locations. Our speed and recreation bike, Swift, was not
…show more content…
The company used this information to see what the highest price customers were willing to pay and from there placed each product around that maximum amount while coinciding the popularity of the bicycles function; the larger the market for a certain type of bike, the more willing they are to go to higher prices. While this strategy “limits the customer base available to market products and services to, it also provides a much higher profit margin for each sale” (Burns-Milliard, 2010). With the costs of making the bikes as well as starting a company adds up very quickly, they cannot afford to set their prices extremely low if they hope to make a profit anytime in the near future. By pricing the bicycles close to what the customers are willing to pay, not all of their interest will be lost due to the product being expensive. The high-quality features are going to draw in consumers that are using their bikes often, not bargain hunters that rarely ride bikes. With time they hope to grow their customer base and find ways to lower costs so that they will be able to offer their bicycles at a lower rate to accommodate a wider target …show more content…
They currently have four bicycles on the market, the work bicycle Metro, the children bicycle Squirt, the mountain bicycle Rocky, and the speed bicycle Turbo. As far as location, the company is currently set up in six cities all in different countries, Amsterdam Netherlands, Seville Spain, Nantes France, Buenos Aires Argentina, Marrakech Morocco, and Bangalore India. With a broad range of both styles of bicycles and locations across the world, TriCycle has set up for themselves a great foundation to build upon in their next year of business and the many years to follow. They have created for themselves a good foothold in the market, having a significant place in the work and youth segment, a decent standing in the mountain market, and could use some more attention in the speed division. This will all likely grow with time as the mountain and speed bicycles are the newest, and simply need time to grow and differentiate themselves from the competition in their
The company used this information to see what the highest price customers were willing to pay and from there placed each product around that maximum amount while coinciding the popularity of the bicycles function; the larger the market for a certain type of bike, the more willing they are to go to higher prices. While this strategy “limits the customer base available to market products and services to, it also provides a much higher profit margin for each sale” (Burns-Milliard, 2010). With the costs of making the bikes as well as starting a company adds up very quickly, they cannot afford to set their prices extremely low if they hope to make a profit anytime in the near future. By pricing the bicycles close to what the customers are willing to pay, not all of their interest will be lost due to the product being expensive. The high-quality features are going to draw in consumers that are using their bikes often, not bargain hunters that rarely ride bikes. With time they hope to grow their customer base and find ways to lower costs so that they will be able to offer their bicycles at a lower rate to accommodate a wider target …show more content…
They currently have four bicycles on the market, the work bicycle Metro, the children bicycle Squirt, the mountain bicycle Rocky, and the speed bicycle Turbo. As far as location, the company is currently set up in six cities all in different countries, Amsterdam Netherlands, Seville Spain, Nantes France, Buenos Aires Argentina, Marrakech Morocco, and Bangalore India. With a broad range of both styles of bicycles and locations across the world, TriCycle has set up for themselves a great foundation to build upon in their next year of business and the many years to follow. They have created for themselves a good foothold in the market, having a significant place in the work and youth segment, a decent standing in the mountain market, and could use some more attention in the speed division. This will all likely grow with time as the mountain and speed bicycles are the newest, and simply need time to grow and differentiate themselves from the competition in their