There are budgetary areas that raise concern in the budget planning of Competition Bikes, Inc. One area is forecasting of the sales budget. The sales projection in units for year 9 is set at 3510. In comparison to year 8, there was a 15% decrease in units sold in comparison to year 7 levels. Due to the present economic situation, there is no support for the projected sales to reflect 3510, as professional rider’s sponsorship is at a decline. The decline is expected to continue for another three years. The sales projections does not seem realistic as going forward there are no discussions as to how to increase sponsorships in the declining market.…
During the evaluation of Competition Bike’s budget schedule a few areas of concerns were identified within the budgeting and proformas. The first area of concern within budget was advertising. The advertising was budgeted for $28,412; they may want to consider increasing their marketing to reach a wider audience to boost sales. In year 6 the advertising was $23,820, then increased year 7 $32,760, and year in 8 decreased to $27,428. They need to increase their exposure within the bike market. They need to consider redoing their website, the website allows them to reach a wider audience 24 hours a day 7 days a week. Increasing advertising could be a favorable outcome on net sales since net sales were down in year 8 by -15%.…
1. Age: Canadian tire’s average shopper is middle aged, so Canadian tire really gets into the 18-35 age groups.…
Thorr Motorcycles is a $5 billion company producing a wide range of motorcycles. In addition to producing motorcycles, the company, also have licensing programs; sell T-shirts, shoes, toys for the motorcycle. The company offer services in dealer training, dealer software packages, motorcycle rental, and rider training (University of Phoenix, 2013). The sales of high quality of motorcycles are declining. The cost of a princely motorcycle was $200 in 1901. Today, a heavyweight powerful cruisers cost $25,000 (University of Phoenix, 2013). The company must develop a marketing strategy to improve sales for Thorr Motorcycles.…
Sales of the Cruiser Thorr are decreasing. The decrease is because the Cruiser Thorr’s target consumers are aging and their tastes have begun to outgrow the lifestyle that Cruiser Thorr symbolizes. Another issue is that younger consumers are more interested in lower priced motorcycles because of their lower personal disposable incomes and they do not identify with Cruiser Thorr’s lifestyle image. This scenario wanted to determine the Cruiser Thor’s position in the market by choosing four relevant parameters that will reflect the highest potential.…
Harley-Davidson should consider modernizing the technology used in its motorcycles while at the same time maintaining their retro look. Harley’s lack of innovation has tarnished the brand’s image, especially to younger consumers. The Chevrolet Camaro, Dodge Challenger, and Ford Mustang have all revived classic body styles in their latest model redesign. However, modern technology was incorporated into these models, so while they look similar to classic automobiles of the past, they have all the bells and whistles of a modern car. Harley has emphasized having its motorcycles resembled those of the company’s storied past, however they have done so by not updating certain components of the bikes, and by keeping old technologies in their new bikes. Although the vintage look and feel is appealing to its loyal followers, Harley should modernize the technology used in its bikes in order better compete with its Japanese competitors. If Harley can do this without affecting the retro look and distinct sound that a Harley exhaust makes, then Harley would be able to attract new customers that value performance and modern technology, while not alienating its current customer base.…
The results revealed that a different segment, the younger individual, influenced more by price more than the aging demographic that has maintained Thorr Motorcycles success during the past years, is fueling the now growing motorcycle market. The younger generation seems to care less for brand and image of the Cruiser Thorr, due in part to the price being outside their preferred price range. It is for these reasons that the Cruiser Thorr is in stage four of its product life cycle, which is declining sales. The marketing plan should consider launching a new product. One that represents the corporate core value of commitment to quality, excellence, and offers a new market niche of affordability, finance option, and enhanced services. This will require a differentiation in the marketing mix. Shifting the market plan with changing differentiation attributes mix now focused on affordability, attractive financing option, and expanding services including social fraternities, it seems the new customer base will be more inclined to view the innovatively designed motorcycle as a commodity that offers superior value and quality. Realigning internal corporate processes and unifying the change in focus on a new product goal will cause other processes in the marketing mix to function toward the goal of promoting and placing the new product in a positive light. Attracting this new demographic is creating the…
Bikes have been around for more than a century and many people use it in their daily lives sales. Scwhinn’s reorganization into the high-end part of the market won’t produce huge surges in demand. For this reason I believe the bicycle market to be in the maturity phase.…
T-Mobile is one of the leading mobile network operators in the world. Today, the company operates worldwide, though it is headquartered in Germany and European market was traditionally the main, target market of the company. Nevertheless, the process of globalization stimulated T-Mobile to develop its business internationally and the company has entered successful mobile network markets in many countries of the world, including the USA. In such a situation, the company needs to focus on the target audience which can allow the company to maximize its profits. In this respect, the proper market segmentation is crucial. Taking into consideration the specificity of T-Mobile’s business, i.e. mobile networks and telecommunication services, the following segments are particularly prospective: 16-24 years and 25-35 years customer groups.…
Wholesale Mopeds & Scooters are a big business these days due to high gas prices in the market. Many people will be focused on these products because of…
All braaarp motorcycles are design and tested in Australia, because it is an online shop they got a well organize and a good services. Customer can choose their own plastics colour and sticker kits, all customers want will appear on what they ordered. Customers will get free learn to ride lessons, that can give much more information about their products and make customers like this product because they learn more can know more and they will have a good impression on the braaap’s product and services. The entire bike have disk brakes, it’s make the bike more safety and easy to maintains and repairs, and this will make customers more comfortable with braaap’s product, more safety means life will go longer when you use their products. There have no weight limit, so that’s means every one can ride. The bikes have adjustable set high, if you buy it for your kids, they can ride for a very long time. Also if customers don’t know about how to ride their bike, they are providing lessons to teach people how to ride your own bike, this is very good services because people always want to try new things for this braaap can make people have confidence. Pricing policy…
Thorr insist on maintain their lifestyle image, this image set their motorcycles apart from all others in the industry. To reach a solution for the lagging sales the solutions that have been recommended are reformulating areas of Quality Engineering, Price, and Services. Quality Engineering is one of the principles was built on and a need to emphasize the quality engineering characteristics of the company 's products. Some of the aspects Thorr has to capitalize on as part of the quality engineering is the design of the product, style of the product, the capacity and design of the engine, the unique qualities and a good manufacturing process. Quality Engineering reflects important quality is for an organization. If the organization has and maintains high quality in the products, it gives the organization credibility. Price is an important aspect to most consumers. Thorr 's products are among the most expensive motorcycles on the market. Many of Thorr 's customers are willing to pay the premium price to have the status of owning one of Thorr 's motorcycles. The company has determined that price is a major factor of the younger customers who do not have the disposable income for a high priced motorcycle and affects the customer 's…
Before offering solutions to any of the problems mentioned above, we would like to dig into details about the industrial background, company strategic positions, and competitive advantages and disadvantages about the company. These analyses are especially beneficial to help identify potential opportunities and threats of the motorcycle industry and its sport segment. Five forces analysis are supplemented to our analysis.…
Horizontal Analysis - The financial statements of Competition Bikes indicates a reverse in sales between fiscal years 6 and 7 where revenues increased to 37.5% and then a decreased 16.3% between fiscal years 7 and 8. This apparent trend is an indication that the company is moving in the wrong direction as sales have decreased. Not only is sales decreasing because of the current economic situation, but customers who also sponsor professional riders are decreasing. Reduction of sponsors will decrease advertising resulting in reduced sales. The trend in sales will have ramifications through out the entire organization as is demonstrated in further review.…
One of the biggest opportunities in the motorcycle industry is the growth trend of 3.3% in unit sales over the past five years, mostly in the United States and Asia/Pacific markets. Also, the rapid growth of women ridership offers the potential of an even larger customer base in the future. In the sport segment in particular, growth in the next few years is expected between 2% and 3%. The history and brand recognition of Ducati will help them to attract some of these new customers related to industry growth.…