Strategy Plan

CYCOLOGIST

Company goal(s)/Evaluation
During Quarters 5-8 our goal is to make Cycologist the Market leader in first, Mountain
Bikes and Second, Speed Bikes. Cycologist will primarily focus on a high-end market that values
the high quality and luxurious products that we offer. Our third focus will be our recreational
bike which we will use to gain us market share and generate revenue which we can invest into
R&D for our mountain and speed bikes. Since adding our recreational bike Solace` in Quarter 4
our market share grew to 11% this is a 7% growth from Quarter 3 where our market share was
4%. Our recreational bike has proven to gain us a larger market share and this will allow us to
continue to create the highest quality bike for our mountain and speed bike customers while still
creating enough revenue for our company. Cycologist will continue to position itself as the top
bikes on the market. Focusing on a high quality product at a price relevant to the quality of the
product and how much our customers are willing to pay. We will continue to improve our bikes
as competition increases in order to have the highest quality bike on the market. Our goal is to
create a high quality brand image for our customers and we want to place highest in brand
judgment for our two premium product offerings, mountain and speed bikes.

Strategy
Cycologist’s overall corporate strategy is to provide premium, sustainable carbon-fiber
bikes that fit every bikers’ needs. However, Cycologist will first focus on perfecting the
mountain bike before introducing other models. The top three market segments Cycologist will
be focusing on goes as follows: 1. Mountain, 2. Speed and 3. Recreational. To gain a competitive
edge in the carbon-fiber bike market, Cycologist will be a fast follower in product design and be
the high service provider in the market. In order to achieve a successful corporate strategy,
Cycologist will have supporting sub-strategies which will be discussed in the following sections.

a. Generic Strategy (Porter’s Strategies)

In quarter two of the simulation, Cycologist decided to stick with a focused
strategy when introducing their first bike. The first bike, the Rattlesnake, was targeted at
experienced mountain bikers. In order to serve this market effectively, Cycologist wanted
to create a premium, carbon-fiber mountain bike that met top needs including the ability
to handle rough terrain, turn sharply, and durability. Moreover, we decided to focus on
selling the Rattlesnake domestically in large geographic locations such as Portland and
Toronto. Although this is a more costly decision, Cycologist knew that consumers in
 these locations were more likely to purchase the Rattlesnake based on market research.
By pursuing a focused strategy for our first bike, Cycologist was able to see how we
could improve upon our first bike and become the market leader.
Not surprisingly, the Rattlesnake did not generate high profits for Cycologist. We
came in second place in terms of market share in the mountain bike market. Based on
these results, Cycologist decided to: 1. Perfect their mountain bike and imitate their
competitors and 2. Introduce new bike models to gain a larger market share. With this
decision, we shifted from a focus strategy to differentiation strategy. By implementing a
differentiation strategy, Cycologist was now looking at the speed and recreational
markets, still offering each quality bikes. Moreover, to reach the speed and recreation
market, Cycologist decided to open their first international store in Tokyo based on
consumer demand and potential. In all, achieving a larger market share while providing
the top-performing bikes in each market segment would allow Cycologist to gain an
overall competitive advantage and higher profits in quarter four.

b. Growth Strategy
When introducing the Rattlesnake to mountain bike market, Cycologist utilized a product
development strategy. In order to achieve growth in our desired target market, Cycologist wanted
to create the best carbon-fiber mountain bike. To achieve this, we decided to invest heavily in
market research ($88,000) in quarter one. As a result, we were able to build the Rattlesnake
based on the target market’s top needs when it came to mountain bikes. Moreover, through
market research, we were able to determine which markets had the greatest potential for the
Rattlesnake. Although we came in second in terms of market demand, we were able to gauge
how people responded to our product and how we could catch up to our competitors.
When looking at where Cycologist stood in the carbon-fiber bike market, we only had
4% market share. However this did not come as a surprise since we only created one model. In
order to increase our overall market share, Cycologist decided to utilize a related diversification
strategy. After analyzing our results in the fourth quarter, we decided it would be best to improve
upon the Rattlesnake and introduce two more bike models: Solacé and Bolt. Solacé would serve
the recreational bike market and Bolt would serve the speed bike market. In order to produce the
best bikes in each of the new markets, we analyzed the bikes of our competitors. In addition,
Cycologist decided to introduce our bikes internationally by opening a store in Japan. This new
venture would not only grow Cycologist on an international level, but serve our new markets and
their needs effectively. As a result, Cycologist’s market share grew by 7% in the carbon-fiber
bike market and had the highest brand judgement in the speed bike market. Based on our
balanced scorecard, Cycologist is above the norm and has obtained a competitive edge.

c. In-Market Strategy
 Cycologist’s will utilize both high-end and middle as their in-market strategy for multiple
products that Cycologist is offering in the carbon-fiber bike market. The first bike that
Cycologist introduced was Rattlesnake, which later modified in quarter four and named
Rattlesnake 2.0. Rattlesnake 2.0 is aimed to target experience mountain bikers who are willing to
pay for premium mountain bikes. Cycologist created a luxury mountain bike and priced it at
$1,150, which is just below the price consumers from Tokyo, Toronto, and Portland are willing
to pay. In addition to modifying Rattlesnake, Cycologist created a recreational bike called Solacé
and speed bike called Bolt. Bolt is a high-end product that targeted to professional speed bikers.
The high-end in-marketing strategy will be utilized to market both Rattlesnake 2.0 and Bolt as
premium products that promises quality for the price unique to its competitors.
After releasing Rattlesnake in the market, Cycologist created more products to increase
the market share that the firm’s hold in the carbon-fiber bike industry. In quarter four, Cycologist
created a recreational bike called Solacé to expand the firm’s target audience. Solacé was
marketed using the middle in-marketing strategy to reach the middle class and was priced at
$800 with $40 rebate to appeal to the target audience.

Segmentation Plan
Cycologist created multiple bikes that will target specific consumers in the carbon-fiber
bike market. With various products, Cycologist is administering two focused segmentation
schemes and one differentiated segmentation scheme. In quarter two, Cycologist created the first
bike, called Rattlesnake. Rattlesnake was designed to target mountain bikers who are willing to
pay a premium for high-quality bikes that can handle rough terrain while remaining light and
durable. The market for this product is segmented using the focused scheme, which concentrates
on one specific segment. Since Rattlesnake is a luxury product, Cycologist targeted mountain
bikers that are in the high-income group.
In quarter four, Cycologist created two different bikes: Solacé and Bolt. Solacé was
created by Cycologist to serve the recreational bike market, who are looking for comfort and
quality at a reasonable price. Cycologist used differentiated segmentation scheme for Solacé to
target different segments. Unlike Rattlesnake, Solacé is not a premium product and is priced
below the average price consumers are willing to pay. Moreover, Solacé offers a rebate in hopes
of appealing to consumers in the higher to middle-income group. Cycologist designed Bolt to
target the speed bike market and is using a similar segmentation scheme as Rattlesnake.
Similarly to Rattlesnake, Bolt is a luxury product aimed towards speed bikers who are looking
for something fast and lightweight. Cycologist is selling Bolt for $1,400, which is just below the
price consumers are willing to pay in Tokyo and Toronto and above the price they are willing to
pay in Portland.
The market for Rattlesnake, Solacé, and Bolt are segmented on the bases of income,
lifestyle, and consumer needs. Both Rattlesnake and Bolt are luxury products aim to target
consumers that are within the high-income group. Cycologist wants to attract consumers that
have high disposable income and are willing to spend money on our premium bikes. However,
Cycologist still wants to target bikers that value adventure, sport, and exercise. We created
Solacé for the recreation bike market to attract consumers in the middle-income group, and
values relaxation and fun.
Positioning
Cycoloigist wants to position itself as the highest quality bike available in the market. In
quarter 4 all our product offerings place in the Top 2 for brand judgment. Our Mountain and
Speed bike will follow a high-end positioning strategy while our recreational bike will follow a
mid-market positioning strategy.
For our mountain bike Rattlesnake and Rattlesnake 2.0 we created our bike to hold
attributes that our target customers valued the most. Our product includes items like premium
high grip mountain tires, 24 speed gears, and a premium suspension. Utilizing market research
our goal was to fulfil the most important and valued needs for our riders. Our product will
perform efficiently in the toughest terrain and its product user is targeted toward experienced
riders who will value the superior quality of our bike.
Bolt our speed bike has ranked highest in brand judgment in the speed bike category. Bolt
is equipped with premium handles, 24 speed-gears, racing tires, and colorful thin brushstrokes.
These product attributes offer our customers what they value the most, speed, durability, and a
status symbol/exclusivity. Our bike was created in Quarter 4 by imitating what our competitors
succeeded in creating for the market but adding product attributes to create a higher quality bike
that customers would value most. Bolt was created to be used as the fastest bike on the market
keeping in mind that our target market values competitive advantage. Bolt is designed to be used
by an experienced speed biker therefore we created the bike to be of high quality and easy to
maneuver for an experienced rider.
Solace` our recreational bike is the product that will follow a slightly different
positioning strategy. In quarter 4 we made a decision to diversify our product offering in order to
create a product targeted toward a larger market to gain market share for our brand. Solace` still
follows Cycologist’s image of high quality bikes but offers a bike that more customers can
afford. When creating the Solace` we realized that our recreational bike was to be used by
customers who valued comfort and an easy to use bike. Our Solace` contains product attributes
like a comfort frame, comfort seat, and easy to use gears. Our targeted customers for our
recreational bike find value in these attributes by enjoying a comfortable and easy ride that
requires no expertise. The values of the market that shops for recreational bikes are different
from the market that shops for speed and mountain bikes therefore we determined it would be
best to position this as a mid-market product priced significantly lower than our other products.

Tactics
 1. Product
In quarter two, Cycologist focused on experienced mountain bikers and designed a
premium bike based on their wants and needs. Mountain Bikers were looking for a bike that had
the ability to handle rough terrain, turn sharply, and durable. This is where Rattlesnake came into
play; the Rattlesnake is built with a rugged bike frame, made out of enriched carbon fiber which
allows the bike to handle rough terrains while being both light and strong. In addition, the
Rattlesnake is equipped with mountain tires and front suspension that has high grip to handle
rugged paths and inclines, precision brakes to stop quickly, and basic straight handlebars for the
most control on turns while riding through rough terrain. For added speed and comfortability, we
also included clipless pedals, a 24 speed gear, and an all purpose polymer gel seat for a extra
comfortability during rough rides. Lastly, we added in an extra bottle cage for a water bottle and
standard lights for night riders.
Because of low profitability and decent market share, we decided to modified the
Rattlesnake to perfect the mountain bike and introduce two new bike models. Instead of using
basic clipless pedals, we modified them to basic clip pedals for more control. We also
implemented a full suspension system to absorb as much shock as possible, creating a
comfortable ride. In addition to the bottle cage and the light, we included an extra repair kit for
riders; this is now known as the Rattlesnake 2.0. We also introduced two new lines of bikes:
Solace and Bolt. Solace was built for recreational bikers who were looking for a bike that was
easy to ride and comfortable. We created a bike with a standard hybrid carbon fiber frame,
hybrid wheels, and a urethane foam seat to create the most comfort for riders. It also comes with
an extra accessories like a repair kit for on-the-go repairs, a water bottle cage, lights, and
reflectors. On the other hand, Bolt was built for all speed demons alike and focuses on being the
fastest and lightest bike on the market. It features a sleek, aerodynamic design made out of
enriched carbon fiber to minimizing the weight and maximize speed. Equipped with racing tires
and basic drop down handlebars, this bike will make users more aerodynamic and faster. We
have also included a repair kit that will be supplementary to the bike.
We have prioritized the bikes these bikes based on the overall corporate strategy.
Mountain bikes (Rattlesnake 2.0) will be our main priority, followed by speed bikes (Bolt), and
recreational bikes (Solace).

2. Price
Originally, we focused primarily on providing a luxury mountain bike for our target
markets in Portland and Toronto. Both of these cities were willing to pay a similar price for a
mountain bike. We priced the Rattlesnake at $1,100 because the bike’s benefits and features
matched the customer’s wants and needs, while providing the highest quality. Another factor that
played into our pricing were competitors. Compared to our competitors providing the same type
of bike, our bike was priced the lowest and gave Cycologist a high market share, but it wasn’t
nearly what we were hoping for. In quarter 4, we introduced two new bicycles to an international
market along with our modified mountain bike, Rattlesnake 2.0, priced at $1,150. For our newer
bikes, Tokyo was willing to pay a high price for their speed and recreation bikes, $1,526 and
$1,072 respectively. Sticking to our overall corporate strategy, we priced the Bolt at $1,400
because it is a premium bike for users that were looking for something with a competitive
advantage for their next race. On the other hand, we took a different approach with Solace. We
made our recreational bike affordable, charging $800 and also offering a $40 rebate to draw in
more customers to purchase this bike.

3. Place
For our luxury mountain bike, we opted to distribute our initial product in North
America, specifically in Toronto and Portland. These large cities displayed a higher market
potential for mountain bikes, which influenced our decision to open up sales offices within these
areas. Due to Portland and Toronto displaying a higher market potential, these consumers were
willing to pay a higher price for what they needed. As a result, we opted to distribute the
Rattlesnake, a luxury mountain bike that met the needs of our target market. These two decisions
factored into our choice of choosing the place to distribute our product. Our company also
purchased market research for areas within the North America territory to gather more
information about the consumers needs and preferences for bikes.
For our previous quarter, quarter three, we opted to open stores in each city and staff
them with one person that specialized in service, while another focused primarily on selling the
mountain bikes. This would come out to a total of four sales and service people that would assist
the guests when needed. Our decision to hire less sales and service people stemmed from our
worry of having enough funds. As a result of this decision, Cycologist did not do well in terms of
profit growth.
In quarter four, Cycologist came out with an additional two bikes, Solace and Bolt, that
would help us gain a competitive advantage in Portland and Toronto. Our company has learned
from our previous mistakes and opted to hire more sales and service people to staff at all of our
locations to assist guests. We currently have twelve sales and service people which has benefited
our company. In addition, we decided to expand overseas and begin distributing our products in
Tokyo. It has a high market potential and consumers are willing to pay a higher price for the
speed bike, Bolt. We plan on hiring multiple sales and service people once we open our store in
Tokyo and maintaining the same number of sales and service people in Portland and Toronto.
We are currently looking into expanding into other cities in North America, but our primary
focus is on ensuring that our current locations show considerable growth and profit.
4. Promotion
For our company, advertising plays an important role for our business because it allows
for us to communicate with the consumer. Since we are primarily focusing a majority of our
budget on opening new stores, creating new products, and increasing the number of employees
we have, our company decided to do a lower number of local print media ads compared to our
competitors. In Portland, we chose to focus all the attention on the new and modified Rattlesnake
2.0 bike by doing three ads. Cycologist wanted to draw the consumers attention and have it
solely focused on the modifications added to the current Rattlesnake bike, instead of promoting
our newer bikes. Based on the market research, mountain, speed, and recreational bikes attract all
types of customers, which influenced our decision to run two ads based on the newest
Rattlesnake bike, one ad based on our recreational bike, Solace, and running at least two
advertisements on Bolt, our newest speed bike. This would total eight number of product
advertisements in local media which would cost $8,855.
We plan to tailor each of our advertisements to the geographical region we plan on
promoting our product lines. An example would be how in Tokyo we planning on heavily
focusing on promoting our speed bike, Bolt, since customers there would be willing to pay a
higher price for a good quality bike. By creating advertisements that include aspects of the local
environment, our brand will be able to relate more personally to the consumer. In addition, we
plan on incorporating different variations of advertisements, such as print and media, to widen
the amount of advertisements that consumers will see.
For our social media marketing approach, we plan on utilizing social networking, blogs,
and newsletters. Our company hopes to target specific interest groups and working professionals
with expendable income, social networks such as Facebook, Instagram, and Youtube these will
attract their attention. In the age of social media marketing, it is important for us to create a
relationship with our customers. We are able able to be authentic on social media sites as well as
blogs. Blogs are created to offer a positive review on our products, be informative, and drives
traffic back to the business. It offers a fresh view of the business and makes the product lines
relevant to the consumer. Individual blogs that target specific groups will be a reference point for
our customers and maintain the relationship between the brand and the consumer. For our
business, we do believe not our social media marketing tactics that this will vary by region,
because social media has become widely used everywhere. As trends do occur, we do plan on
changing this over time.
We initially did not intend on doing a sales promotion for our brand at the beginning,
however, after seeing the benefits of doing so, we incorporated it into our decisions for the next
quarter. As of right now, we are only offering a rebate on our recreational bike, which made our
product even more affordable. It is priced at $800 and offering a rebate for $40, which is not a
big discount. As of right now, we are planning on offering rebates on products in the future, but
will determine on a product base. When factoring our decisions to offer rebates, we will monitor
how our competitors offer sales promotion and our own plans. Most likely, our promotion
activities will vary by geographical region to be receptive to the current regions preferences.
Customer service is important to our brand, because it will change the position a business
has in their market. With good customer service, this will retain and strengthen relationships
between the consumer and the brand. By having a strong customer service that goes above the
customers expectations, we will increase the amount of money spent at our business, appeals to
the consumer, and builds brand awareness. If the customer service is poor, it will damage the
appearance of the brand and drive the customers to the competitors. When determining the
amount of our budget to allocate, we will be investing more into customer service. By pouring
the money into customer service, we make an important decision to invest in an area of our
brand.