*Goes along with team objective -Inelastic -Higher price for higher quality -Increase advertising and public relations
First-year sales in units 6,000 First-year sales in dollars $10,800,000
-Objective was to sell 6,000 bikes Actual sold was 4,825 -Objective for sales was $10,800,000 Actual sale was $8,124,648 -Competition was extremely high
*Our quality index was 79.2 -We’re hoping target a serious market where buyers would buy high price for high quality *We chose the Annihilator Bike -Our technical specifications are at 62.55 -Our style/design is at 18.74
*Meeting our quality objective: -We should have spent more money on quality -People want a higher quality for the price they pay -The quality expected for Road Bikes is 90.0 *Meeting our target product design: -We did not spend enough money -Customers want a high tech bike with style
Our product launch price was 1800 dollars. We used information from current competition, and tried to look at it from a consumer’s point of view to set our launch price. We used a market skimming strategy to price our product. We are trying to supply our selected target market with road bikes that will satisfy them financially and efficiently. Take it to the Extreme!!!!!
We did not reach our objectives in the pricing area. Our price was not effective because we did not sell as many bike as desired. Our strategy had an effect on the number of bikes we sold because our price and quality were mismatched. We need to work our price along with our bike features together more next year and hope for sales.
Our product awareness objective was.20 and our PR index was.60 We set our objectives based on the scenario reports on product dimensions preference. O O ur strategy was based on the percentages in the statistics. It said that for the road bike segment the PR should be high because the consumer responds to PR more than they do to advertising. TThe percentages for the road bike segment were 10% television, 10% newspaper, and 80% magazines. WWe focused all our money in both Advertising and Public Relations towards magazines.
Our product awareness index for our new product was 6.94%. we did not obtain our objective awareness index. We did not spend enough money on our advertising and PR. If we spend more money on our product awareness we will increase our sales. Our objective was to sell 6,000 bikes and we ended up only selling 4,825 Our public relations index for our new product is at 0.15. Our objective was.20. We could have sold more bikes if our PR was higher
Extreme Bikes choose a distribution index objective of.30. Extreme Bikes choose a distribution index objective of.30. Extreme Bikes choose a delivery index objective of 1.0. Extreme Bikes choose a delivery index objective of 1.0. Distributed Distributed 60% Bike Shops 20% Sports Stores 20% Discount Stores
Our distribution index was.10, which was 20% percent short of the distribution index objective we had stated of.30. Our distribution index was.10, which was 20% percent short of the distribution index objective we had stated of.30. Our road bike our delivery index was 1.0, which was the delivery objective we stated before making our decision. Our road bike our delivery index was 1.0, which was the delivery objective we stated before making our decision.
*Market-Skimming – what we used for Road Bikes -Road Bikes are inelastic, this will make the revenue greater -Targeting a more serious market, less competition -The most effective way to get a response is through PR *Market-Penetration – we should have gone into Youth Bikes -Large mass market, an elastic product, more competition -The most effective way to get a response would be advertising on TV *Our initial strategy for Mountain Bikes -Price and quality range in between Youth and Road Bikes -Very competitive - The most effective way to get a response is with advertising in magazines