STRATEGIC MARKETING SIMULATION REPORT: ECO
BIKES
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Table of Contents
Introduction......................................................................................................................................3
Application of Theories and Models...............................................................................................3
Market Analysis...........................................................................................................................3
SWOT......................................................................................................................................3
PESTLE...................................................................................................................................4
Ansoff matrix...........................................................................................................................5
Financial Management.................................................................................................................6
Cost of Production Estimate........................................................................................................7
Market Share Analysis.................................................................................................................8
Stakeholder Management............................................................................................................9
Competitors’ Local Advertising and Stores Marketing Approach................................................10
Cash flow of Eco Bikes.................................................................................................................11
Critical Evaluation of Tools and Theories.....................................................................................12
Strengths....................................................................................................................................12
Limitations.................................................................................................................................13
Recommendation...........................................................................................................................13
Enhance Integration of Qualitative Factors...............................................................................13
Foster Cross-Functional Collaboration......................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
It has been explored that Eco Bikes aims to disrupt a harsh business with its environmentally
friendly bikes by displaying sustainable innovation and Eco Bikes competes in strategic
marketing by using data-driven methodologies and theoretical frameworks. Therefore, the
industry's third-quarter results highlight the difficulties and opportunities in an ever-changing
world and Eco Bikes' future investments surpassed competitors, demonstrating resilience despite
a poor overall result. Despite ups and downs, financial performance data points to rebalancing
strategies to maximise resources and revenues. Thus, it can be stated that marketing efficacy and
market performance measures reflect the company's dedication to brand awareness and consumer
engagement. As a result, Eco Bikes' global presence and smart shop expansions position the
company for growth. Hence, it can be stated that the study investigates Eco Bikes' strategic
marketing techniques, evaluates relevant theories and models, and develops plans for future
success in changing market conditions.
Application of Theories and Models
Market Analysis
SWOT
Strength Weakness Opportunity Threat
Eco-friendly Limited distribution Expansion into Intense competition
products cater to channels hinder emerging markets from established
growing market reach and presents opportunities players may erode
environmental penetration. for market growth. market share.
consciousness.
Robust financial Reliance on single Technological Economic downturns
management sourcing for key advancements offer could impact
ensures sustainable components increases avenues for product consumer
operations. supply chain innovation and discretionary
vulnerability (Flores differentiation. spending on eco-
and Jansson 2021). friendly products.
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Strong brand High production costs Strategic partnerships Regulatory changes
reputation and may limit price with complementary in environmental
customer loyalty competitiveness. industries enhance standards may
drive repeat market presence and necessitate costly
purchases. diversification. compliance measures.
Agile decision- Limited marketing Shifting consumer Volatility in raw
making enables budget constrains preferences towards material prices
swift adaptation to promotional activities. sustainability create impacts production
market trends. new demand for eco- costs and
friendly products profitability.
(Fyhri and Sundfør,
2020).
PESTLE
Factor Rationale Impact
Political Government policies on High impact; may influence production
environmental regulations costs and market access.
Economic Economic stability and Significant impact; affects demand for eco-
consumer purchasing power friendly products.
Social Shifting consumer High impact; drives demand for Eco Bikes'
preferences towards products (Arning et al. 2023).
sustainability
Technological Advancements in electric Moderate impact; offers opportunities for
vehicle technology product innovation.
Legal Compliance with High impact; non-compliance may result in
environmental and safety penalties and reputation damage.
standards
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Environmental Climate change and natural High impact; influences product design
resource conservation and market positioning.
Ansoff matrix
Existing Products New Products
Existing Expand market share through intensified Diversify product line by
Markets marketing efforts and customer retention introducing accessories or
strategies. complementary services.
New Penetrate untapped geographical regions Explore new market segments or
Markets with existing product offerings. demographics for product
expansion.
It has been explored that the Ansoff Matrix assesses strategic expansion opportunities by
comparing existing and new products and markets. Therefore, it can be stated that Eco Bikes can
use this matrix to broaden its product offerings and market share and Eco Bikes can increase its
marketing efforts and market share by focusing on the existing products and markets quadrant.
Thus, client loyalty programmes, awards, and targeted advertising may help achieve this goal
(Zhu, 2021). Eco Bikes can boost sales by using its brand and dedicated client base and another
method for global expansion is to enter new markets with existing items. Hence, it can be stated
that to address the increasing demand for green mobility, it may be required to expand into other
countries or locations and Eco Bikes may enter new markets without spending a fortune on
product development by utilising its existing products.
However, Eco Bikes can meet client requirements by expanding into new items and it could
include new accessories or services such as bike repair, eco-friendly gear, or subscription-based
models offering new things allowing Eco Bikes to reach more people and earn more money.
Besides that, developing and researching new items for untapped markets is a straightforward
strategy that is riskier, but it provides more opportunities for creativity (Pisa, 2021). Hence, it
can be stated that Eco Bikes could expand into new markets by producing products for urban
commuters and outdoor lovers and the Ansoff Matrix enables Eco Bikes to examine growth
plans and make informed decisions in order to expand and compete in an ever-changing market.
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Financial Management
Figure 1: Balanced Scorecard
According to statistics, Eco Bikes' financial management is critical to its capacity to operate and
profit despite market volatility and the third quarter's financial performance assessments show
opportunities and risks that must be addressed for long-term financial sustainability. Therefore, a
minimal financial performance indicator of -208.615 indicates a loss, thus financial risks must be
addressed with a maximum metric of 14,362, and ECO bikes could be viable (Sarrica et al.
2020). It has been found that from a beginning balance of $425,000 to an ending balance of
$1,127,373, cash flow has been positive throughout the time period and this upward trend
implies that cash inflows outweighed cash outflows throughout the analysed period. Besides that,
earning more money, keeping spending under control, and taking advantage of financial plans
are all methods to improve your cash on hand while the Remus product line is losing money, it is
actually bringing in more money overall. Furthermore, if prudent expenditure management had
been followed, such as lowering operational expenses and reallocating resources, additional
monies may have been made available for other purposes. However, non-operating activities
such as finance or investment may also contribute to the positive cash flow trend. The company
may have raised funds by selling non-essential assets or taking out loans to fund operations
(Cipriani, 2023). Thus, it can be noticed that to maximise financial data prospects, Eco Bikes
must focus on a few important tasks and ABC cost management is the first step towards lowering
expenses and increasing profits. As a result, it could be accomplished by leveraging economies
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of scale, renegotiating supplier contracts, and improving production procedures to eliminate
waste and expanding product lines or entering new markets may lessen fluctuations in demand
and competition. Hence, it can be stated that effective financial planning enables Eco Bikes to
weather uncertainty and maintain its financial health. Budgeting, forecasting, and risk
management.
Cost of Production Estimate
Figure 2: Cost of Production
According to the statistics, Eco Bikes' capacity to generate a profit and compete is determined by
its estimated manufacturing cost. Its has been explored that production costs are determined by
raw material prices, labour costs, overhead costs, and production efficiency and the brands' total
production ranges between 100 and 10,000 pieces. Thus, it can be stated that variability
underlines the importance of flexible manufacturing techniques that can satisfy demand
fluctuations at a low cost and all brands use fewer units when producing 100 units versus 10,000
units. However, higher production volumes may spread fixed expenses over a larger output, and
cutting unit costs and size disparities can have an impact on economies of scale (Kaivonen,
2024). Therefore, it can be noticed that competition and customer demand influence production
cost predictions to preserve market share and profit and Eco Bikes must keep costs down while
producing high-quality products.
Therefore, Eco Bikes may optimise production costs using numerous methods such as supply
chain optimisation lower lead times, inventory management, and procurement costs. Besides
that, "Lean Manufacturing" maximises resource consumption, minimises waste, and increases
efficiency. On the other hand, negotiating bulk discounts and long-term contracts with suppliers
lowers procurement expenses and modern industrial technology, such as robots and automation,
decreases labour costs and increases output (Beirman, 2020). Therefore, instilling a culture of
innovation and continuous improvement aims to cut production costs wherever possible. Hence,
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it can be stated that controlling production costs allows Eco Bikes to remain competitive,
profitable, and market-relevant.
Market Share Analysis
Figure 3: Market Share of Eco Bikes and Competitors
It can be noticed that Eco Bikes' strategic marketing approach leverages market share statistics to
compare the company to its competitors and analysing the data can show Eco Bikes' market
share and strategic consequences. Therefore, Eco Bikes is making an impact, with a 21% market
share and uses this indicator to determine the company's market share and competitiveness.
Thus, it can be stated that a thorough examination of the competitive landscape is required to
comprehend Eco Bikes' market share growth. Besides that, Eco Bikes Gear ranks second with a
13% market share and this is a robust aftermarket and supplemental product market for Eco
Bikes bodes well for brand visibility and consumer appeal (Stone et al. 2020). However,
understanding Eco Bikes Gear's market share allows the two divisions to work together
strategically to maximise synergies and growth.
On the other hand, Wheelie Good Bikes is ranked eighth, with DealsOnWheels coming in sixth.
In view of DealsOnWheels' dominance and severe market competition, Eco Bikes must
differentiate and increase its value propositions in order to attract and keep customers. Thus, Eco
Bikes can benefit from market share data by tracking consumer preferences and trends to
compete in competitive categories, Eco Bikes could collaborate with specialised businesses or
invest in new product features (Aaker and Moorman, 2023). It has been reported that
understanding regional market share can assist with marketing and resource allocation and Eco
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Bikes can increase marketing and expansion ROI by identifying market strengths and growth
prospects.
Hence, it can be stated that market share analysis explains Eco Bikes' competitiveness and
opportunities and data may be used to make sound decisions and launch strategic initiatives in
order to stay ahead of the competition, satisfy customers, and thrive in an ever-changing market.
Stakeholder Management
Figure 4: Corporate Structure
It has been analysed that effective stakeholder management enables Eco Bikes to address the
demands and interests of its consumers, employees, investors, suppliers, and community
members. Therefore, effective stakeholder management fosters trust, relationships, and long-
term business success and Eco Bikes prioritises consumers. As a result, Eco Bikes can increase
client loyalty, repeat business, and word-of-mouth by focusing on customer satisfaction and
engagement to achieve this goal, one must consistently provide excellent products and services,
go above and above in terms of customer service, and aggressively seek feedback to enhance
offerings.
Besides that, Eco Bikes sees its employees as valuable stakeholders and Eco Bikes can enhance
morale and productivity by providing a welcoming environment, opportunities for professional
progress, and competitive compensation and benefits. It has been found that Eco Bikes seeks
investors to help it develop and build confidence and attracting investment requires open
communication, financial commitment, and a well-defined value development strategy
(Quesenberry, 2020). Thus, it has been found that suppliers are essential to Eco Bikes since they
provide bike components and raw materials and building strong connections with suppliers,
negotiating fair terms, and purchasing ethically and responsibly are critical for a dependable
supply chain and risk reduction.
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However, Eco Bikes must engage with the public and other stakeholders to demonstrate
corporate citizenship and environmental care and as part of our pledge, Eco Bikes will support
community projects, reduce our environmental footprint, and have a beneficial influence on our
retail sites (Gryshchenko et al. 2022). Hence, it can be stated that Eco Bikes must understand
stakeholder management in order to thrive, create a reputation, and attract customers and Eco
Bikes benefits society by prioritising stakeholder demands and fostering mutually beneficial
connections.
Competitors’ Local Advertising and Stores Marketing Approach
It has been explored that analysis of competitors' local ads and store marketing to better
understand how they draw customers and increase brand awareness. Therefore, it can be stated
that data can help Eco Bikes better understand its competitors' marketing strategies and market
impact.
Local Advertising Strategies:
Figure 5: Competitors’ Local Advertising
It has been noticed that Eco Bikes' competitors include Wheelie Good Bikes, DealsOnWheels,
and Pikainen Tech, who all market locally. Therefore, it has been noticed that DealsOnWheels
uses more local media inserts than its competitors to sell their products indicating a strong
reliance on traditional advertising to reach local consumers and develop brand recognition. It has
been analysed that in contrast, Pikainen Tech primarily employs "Vahta" and "Askara"
advertisements online. However, Pikainen Tech seeks to attract tech-savvy customers who prefer
to discover and buy products online and this advertising method is moving to digital platforms as
client tastes shift in a digitalized market (Huang et al. 2021). Hence, it can be stated that Wheelie
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Good Bikes advertises locally and online with a balanced approach and the multi-channel
strategy allows Wheelie Good Bikes to engage customers at several touchpoints while increasing
brand visibility and enhancing advertising campaigns.
Store Marketing Approach:
It has been evaluated that local advertising, competitor marketing, and other factors influence
foot traffic and sales. Thus, it can be stated that assess store locations and current conditions to
better understand competitors' geographic presence and expansion strategy. Therefore, to
demonstrate their claim, DealsOnWheels creates shops in New York City and Amsterdam, both
of which have considerable demand for cycling products. However, DealsOnWheels requires a
strong physical presence in these markets to capitalise on local customer preferences and
purchasing habits and grow sales and market share (Olson et al. 2021). On the other hand, in
emerging nations such as Johannesburg, Pikainen Tech is heavily investing in new outlets to
meet the growing need for environmentally friendly mobility solutions and the strategic
expansion gives Pikainen Tech an advantage in untapped areas and new geographies.
It has been explored that Wheelie Good Bikes operates more traditionally, maximising earnings
while maintaining a small number of stores and Wheelie Good Bikes prioritises shop
profitability and operational efficiency in order to foster long-term growth through efficient
resource allocation. Hence, it can be stated that studying competitors' local ads and shop
marketing techniques will help to learn a lot about brand promotion and customer acquisition and
the data could help Eco Bikes improve its marketing and stand out from the crowd. This will
increase corporate growth and market success.
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Profitability of Eco Bikes
Figure 6: Cash flow of Eco Bikes
It has been analysed that to operate, meet financial obligations, and maintain liquidity, Eco Bikes
must assess its cash flow data allowing for analysis of Eco Bikes' cash flow and strategy. The
financial statement suggests Remus product line concerns and high cost of goods sold (COGS) of
$1,010,043 produces a negative gross profit of -$767,043, despite $243,000 in revenue. After
production costs, the company is losing money on this product line an running expenses total
$1,151,962, worsening the financial situation. Special Programmes, Caperies, Advertising, and
Employee Salaries costs. Operating Profit is -$1,919,005, indicating a large loss. The company's
bottom line is impacted by Miscellaneous Income and Expenses, especially the -$700,000 R&D
spend. Thus, it can be stated that growth and innovation depend on R&D spending, yet its high
cost drains resources without matching income. It has been found that a $1,564,503 net loss
shows the company's financial performance highlights the need to rethink the company's strategy
and cut costs to protect the Remus product line against financial storms. Recalculating
production costs, investment goals, or operations may be needed to return the business to
profitability and long-term viability.
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Hence, it can be stated that the cash flow numbers demonstrate Eco Bikes' liquidity, efficiency,
and health along with wise finance management, may enable Eco Bikes to weather market
volatility, seize development opportunities, and thrive.
Critical Evaluation of Tools and Theories
Strengths
Strength Rationale Implication
Systematic Theoretical frameworks provide a Enhances consistency and
Decision-making structured approach to decision- coherence in decision-making,
Framework making, facilitating alignment with ensuring alignment with
strategic goals. organizational objectives.
Comprehensive Tools such as SWOT analysis offer Facilitates thorough evaluation of
Assessment a holistic view of internal and strengths, weaknesses,
external factors, enabling informed opportunities, and threats,
decision-making (Flores and minimizing blind spots.
Jansson, 2021).
Financial Viability Financial models like NPV and Provides objective criteria for
Evaluation ROI enable quantitative evaluation assessing investment
of investment decisions, enhancing opportunities, optimizing
financial performance. resource allocation.
Limitations
Limitation Rationale Implication
Overreliance on Some tools may prioritize Risks oversimplification of complex
Quantitative quantitative data over qualitative issues, leading to suboptimal
Analysis insights, potentially overlooking decision-making in dynamic and
nuanced factors influencing uncertain environments.
decisions.
Lack of Real- Theoretical frameworks may not Hinders agility and adaptability,
always accommodate real-time increasing vulnerability to market
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time Adaptability changes in the business disruptions and missed
environment, limiting opportunities (Fyhri and Sundfør,
responsiveness to emerging trends. 2020).
Limited The focus on rational decision- Underestimates the impact of
Integration of making may neglect the influence human factors on decision-making
Behavioral of human behavior and psychology processes, potentially leading to
Theories on organizational dynamics. resistance and suboptimal
outcomes.
Recommendation
Enhance Integration of Qualitative Factors
Recommendation Rationale Implication
Conduct Customer Gather feedback on customer Provides a deeper understanding of
Surveys preferences, satisfaction, and customer needs and preferences,
brand perception to complement informing product development
quantitative data with qualitative and marketing strategies
insights (Arning et al. 2023). effectively.
Implement Focus Engage with customers in Facilitates direct interaction with
Groups interactive sessions to explore customers, uncovering valuable
attitudes, motivations, and insights that may not be captured
perceptions, capturing qualitative through quantitative analysis
insights. alone.
Monitor Social Track online conversations, Offers real-time insights into
Media Engagement reviews, and sentiment to gauge consumer sentiment and behavior,
brand perception and identify enabling timely adjustments to
emerging trends and customer marketing strategies and product
preferences. offerings.
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Foster Cross-Functional Collaboration
Recommendation Explanation Implication
Implement Regular Schedule cross-functional meetings Promotes synergy and alignment
Meetings to facilitate collaboration and between departments, enhancing
information sharing. decision-making.
Establish Shared Define common objectives that Encourages teamwork and
Goals require collaboration across cooperation, fostering a unified
departments for achievement. organizational culture (Sarrica et
al. 2020).
Utilize Collaborative Implement digital platforms for Enhances efficiency and
Tools communication and project transparency in cross-functional
management across teams. collaboration efforts.
Conclusion
It has been explored that Eco Bikes strategic marketing simulation research focuses on merging
theoretical frameworks, data analysis, and practical insights to enable informed decision-making
and business success. Therefore, Eco Bikes uses SWOT analysis, financial models, and market
share analysis to optimise resource allocation and obtain a competitive advantage. Thus, it can be
observed that these concepts and technologies have drawbacks, including oversimplification and
real-time inflexibility. Hence, it can be stated that to compete in an ever-changing sector, Eco
Bikes must increase teamwork, quality, and adaptability and a thorough strategic marketing plan
can help Eco Bikes prosper and profit in a highly competitive sector.
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