Marketing Plan: Marketplace Simulation
Marketing Plan: Marketplace Simulation
Marketing Plan: Marketplace Simulation
MARKETING PLAN
POWER N PEDALS – GROUP 7
Submitted By –
Aakanksha 20BSPHH01C0005
Avinash 20BSPHH01C0262
Chinmai Chaluvadi 20BSPHH01C0321
Dhanak Bansal 20BSPHH01C0373
Nipun Somani 20BSPHH01C0798
Sahil Rana 20BSPHH01C1045
Sannya Aggarwal 20BSPHH01C1101
Shubham Gupta 20BSPHH01C1563
Umang 20BSPHH01C1383
Submitted To-
Prof. Chakravarthi Koundinya
Associate Professor – Marketing Area
CURRENT POSITION – Performance Report till 4th quarter
Markets entered:
1. NORAM – Mexico City
2. MEA – Nairobi
3. LATAM – Buenos Aires
4. Europe – Nantes
Segments entered:
1. Primary segment – Mountains
2. Secondary segment – Recreation
Brands introduced:
1. Mountains – Steep racer V2, Urban Terrain V2
2. Recreation – Serene pro V2, Madmax V2
Demand generated:
Sales Total
Brand Units sold
Serene Pro V2 191
Recreation Madmax V2 234
Total 1203
Local Placements
Total number of inserts - 64 Ads
Total expenditure – 45,608
Judgement Scores
BRAND JUDGEMENT
Recreation Mountain
AD-COPY JUDGEMENT
Recreation Mountain
Rationale:
Q5.
Will Improve the features for products in Recreation segment as provided by other
competitors in market.
Will open new store in APAC
Will increase ad placement and inserts and will improve content by mentioning more
motivators and core values of the company.
We will fill gaps in pricing, advertising and product features which were lacking in the
previous quarter.
We will offer more rebates.
Q6.
Will invest in R&D features such as carbon fibre material and tyres.
Will open a new store in MEA
Will increase sales persons.
We will increase local media ad, social media ad and regional ads
We will increase ad inserts.
We are estimating 20% increase in sales due to new stores and change in advertising.
Q7
Will invest in R&D Features such as brakes.
Will further increase ad placement to increase brand judgement and increase demand.
We are estimating 15% increase in sales due to better ads and improvement in product
features.
Q8
We are expecting the demand to increase due to consistent sales in previous quarters
and minor adjustments in price, advertising and features.
We are estimating 20% increase in sales due to adjustments made in price, ads and
features.
Sales Projection – Region and Brand
RECREATION
Region NORAM MEA LATAM EUROPE
Brand Serene Mad Serene Mad Serene Mad Serene Mad Total
Pro Max Pro Max Pro Max Pro V2 Max
V2 V2 V2 V2 V2 V2 V2
Q4 50 58 58 77 46 54 37 45 425
Q5 85 102 100 140 80 98 65 80 750
Q6 104 120 120 168 95 118 76 98 899
Q7 118 140 137 192 110 134 89 114 1034
Q8 145 169 165 232 130 162 105 133 1241
MOUNTAIN
Regio NORAM MEA LATAM EUROPE
n
Brand Steep Urban Steep Urban Steep Urban Steep Urban Tota
Race Terrai Race Terrai Race Terrai Race Terrai l
r n r n r n r n
Q4 135 104 157 123 80 66 63 50 778
Q5 168 125 197 130 98 79 77 56 930
Q6 203 144 235 168 119 89 93 66 1117
Q7 235 173 270 188 138 101 105 76 1286
Q8 280 196 326 230 164 128 128 91 1543
Plan for Advertising – Local, Regional & Internet
To persuade new potential customers and encourage product purchase, PowerNPedals aims at
increasing visibility through advertising.
Current ad content holds 4 ads focussing on brands of both primary and secondary segments.
Local media placement currently has 64 inserts.
Q5
Focusses on tweaking current advertising message and removing clutter by focussing
more on motivators to increase ad judgment.
To get an edge on the competition, the local ad inserts have been increased
considerably.
Internet marketing – webpages have been deployed in all regions for recreating and
mountain ads along with social media pages.
Paid SEM – For paid search engine ads, the maximum bid is set to the level which
matches both cost-efficient budget of 5000 and gets and edge over competition.
Q6
Advertisement message is planned to be revised based on customer reaction and
judgement score.
Local ad inserts would be consistent with the sales revenue and wouldn’t be increased
too much to avoid bombarding customers with ads.
Regional ad inserts will be increased in MEA.
Internet marketing – web pages would be deployed on MEA along with its existing
deployment.
Paid SEM – Trail & error for bid and budget would be made to master paid search
return on investment.
Q7
After R&D necessary changes would be made in the advertising design.
Local ad inserts might be increased keeping in view the competition inserts
Regional ads would be deployed due to lower sales season and maintain share in the
eyes of the customers.
Paid SEM – trial and error for bid and budget would be made to master paid search
return on investment.
Q8
Advertisement activities would remain consistent in this quarter with little tweaks in all
aspects to match competition and improve slow season sales.
Plan for sales force, training, incentives
PowerNPedals has employed total 7 sales people in all the stores in all the regions where
maximum have been allotted to the segment which has better potential.
Along with specialized sales staff deployment in segments specific areas, to service people
have also been employed in each city to carry out after sales service operation.
We are predicting increase in sales from 5th quarter, this increase will be facilitated with an
increase in sales person to assist the selling process.
To meet the growing demand NORAM will have one more sales person added
to it sales force.
In Q6 we will add one sales person in MEA.
Q7 is expected to see service demands by the customers in lieu of new features
and brands. The company may employ more service personnel.
Q8 is likely to see no apparent change in the sales person.
All sales persons would be trained and specialised in the job responsibility.
Strategy for Positioning
The bicycle segment is divided into 5 market segments: Youth, work, Recreation, Mountain
and speed. Each segment also has a price point where if you are able to meet their needs and
desires, they are likely to accept a purchase.
The following graph represents these 5 segments. To show the price and performance
requirements of each section, The circles are placed. The segments size is measured by the
circle size.
The name of our company is PowerNPedals, which means Powerful yet comfortable bikes!
The mission statement of our company is ‘We at Power N Pedals aim to compete in the market
for people thriving to challenge themselves in the tough mountain ranges and for people who
believe riding gives them fun.’
The Recreation section is looking for a little workout and fun. These customers are very
sociable and enjoy biking on relatively short excursions with friends and relatives. Such
customers are not as rugged as other bike riders; comfort and ease of handling are therefore
very important. Elements in both mountain and commuter bikes can also be adopted by bikes
that cater to this category.
The Mountain Segment wants a bike that can be taken on off-road trails. A bicycle for
adventure, fitness, and sport is used by customers in this category. They like the challenge of
riding on challenging terrain. They take pride in their abilities, and many enjoy the thrill and
adrenaline rush that comes with hills, downhill runs, and cross-country treks being tackled.
Vigorous exercises make it all the easier.
The mission statement of our company directly corresponds to the Recreation and the Mountain
Segment and their goals which is why we positioned our bicycle in these two segments.
Strategy for Differentiation
Points of Differentiation
1. Brand Features:
PowerNPedals has its presence in 2 segments Recreation and mountains. The
brands under the Recreation segment are Serene ProV2 and Mad MaxV2, and
the brands under the Mountain segments are Urban TerrainV2 and Steep
RacerV2.
All these brands have features that make them stand out from the competitor’s
brand. These brands were designed by carefully looking into all aspects of both
the brands.
The bike type for recreation segment is comfort and has features like precision
brake, comfort straight handle bars and 1*7 gears with standard fenders.
The mountain segment requires more and advance features for the bikers. Both
the brands under this segment have the bike type Rugged. The products have
features like 24 speed gear style, full suspension shock absorbers. It is made of
polymer gel comfort.
2. In Every advertisement PowerNPedals has focussed on health & environment friendly
aspects as ad motivators like, have an adventure on a carbon bike, the gym is wherever
you take it, lots of fun to ride, No pain, lots of gain. These motivators help in giving an
edge over the competitor’s brands.
3. Personalized advertising for all brands with non-cluttered ads that depict all features as
well as the positioning of all brands. Carefully designed ads always help in
communicating with the right audience and to persuade the potential customers to buy
our brand.
R&D Expenditure plan
With infusion of cash from corporate office, PowerNPedals has invested a considerable
amount in major R&D features as per the demand of a potential segments (Mountain &
Recreation) This investment is expected to expand market demand.
Although huge investment can result in short term losses, the future quarters are expected
to make up for the lost money and ensure good returns.
The Features are as follows:
Carbon fibre material – Increasing the strength and reduction in weight which is
directly related to the major USP of the brand.
Tyres – Hybrid-Superior comfort - Wider tyres and higher thread per inch, ensuring
comfort and performance.
Brakes – Wet and dry carbon – Ceramic disk – These stand as the most reliable
braking option in the category.
The above features ensure major changes in the performance of the product and are the
best in their respective categories. These can be used not just in one particular segment
but for both Primary as well as secondary segment.
The investment has been made in carbon fibre material and tyres for the 6th quarter use
and the investment in brakes have been made for use in 7th Quarter. The total cost of
tyres have been spread over 2 quarters (6th & 7th Quarters).