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

Steep racer V2 435

Mountain Urban Terrain V2 343

Total 1203

Sales NORAM Sales MEA

Brand Units sold Brand Units sold
Serene Pro 50 Serene Pro V2 58
Recreation V2 Recreation
Madmax V2 77
Madmax 58
V2
Steep racer 135 Steep racer V2 157
Mountain V2 Mountain
Urban 104 Urban Terrain 123
Terrain V2 V2
Total 347 Total 415
 Sales LATAM Sales Europe
Brand Units sold Brand Units sold
Serene Pro 46
Recreation V2 Serene Pro V2 37
Madmax 54 Recreation
Madmax V2 45
V2
Steep racer 80 Steep racer V2 63
Mountain V2 Mountain
Urban 66 Urban Terrain 50
Terrain V2 V2
Total 246 Total 195

Sales Outlets, Sales persons

Sales force NORAM
City Annual Total sales Service Recreation Mountain
salary and service
people
Mexico 11,450 7 2 2 3

Sales force MEA

City Annual Total sales Service Recreation Mountain
salary and service
people
Nairobi 9200 7 2 2 3

Sales force LATAM

City Annual Total sales Service Recreation Mountain
salary and service
people
Beunos 12,560 7 2 2 3
Aries

Sales force EUROPE

City Annual Total sales Service Recreation Mountain
salary and service
people
Nantes 22880 7 2 2 3
 Advertising Expenditure
Advertisements
 Total number of Ads – 4
 Total expenditure – 24000

Local Placements
 Total number of inserts - 64 Ads
 Total expenditure – 45,608

Internet Marketing – 3600

Judgement Scores

BRAND JUDGEMENT
Recreation Mountain

Brand Score Brand Score

NORAM Serene ProV2 64 Urban Terrain V2 61
MadMax V2 61 Steep Racer V2 62
MEA Serene Pro V2 65 Urban Terrain V2 63
MadMax V2 63 Steep Racer V2 65
LATAM Serene Pro V2 66 Urban Terrain V2 65
MadMax V2 64 Steep Racer V2 66
EUROPE Serene Pro V2 62 Urban Terrain V2 60
MadMax V2 60 Steep Racer V2 61
 PRICE JUDGEMENT
Recreation Mountain

Brand Score Brand Score

NORAM Serene Pro 100 Urban Terrain 100
V2 V2
MadMax V2 100 Steep Racer V2 100
MEA Serene Pro 100 Urban Terrain 100
V2 V2
MadMax V2 100 Steep Racer V2 100
LATAM Serene Pro 98 Urban Terrain 100
V2 V2
MadMax V2 98 Steep Racer V2 98
EUROPE Serene Pro 99 Urban Terrain 100
V2 V2
MadMax V2 99 Steep Racer V2 100

AD-COPY JUDGEMENT
Recreation Mountain

Brand Score Brand Score

NORAM Serene 60 Urban 39
ProV2 TerrainV2
MadMaxV2 60 Steep RacerV2 52
MEA Serene 60 Urban 39
ProV2 TerrainV2
MadMaxV2 60 Steep RacerV2 52
LATAM Serene 60 Urban 39
ProV2 TerrainV2
MadMaxV2 60 Steep RacerV2 52
EUROPE Serene 60 Urban 39
ProV2 TerrainV2
MadMaxV2 60 Steep RacerV2 52
 Balanced Score card Till Q4
Cumulative Results for Q4
Minimum Maximum Average PowerNPedals
Cumulative Total Performance 0.000 27.761 5.249 3.131
Cumulative Financial
-34.399 27.493 -1.477 6.628
Performance
Cumulative Market Performance 0.068 0.363 0.211 0.223
Cumulative Marketing
0.453 0.718 0.616 0.589
Effectiveness
Cumulative Investment in Future 4.438 8.578 6.323 4.464
Cumulative Wealth 0.538 0.913 0.732 0.808

1. Cumulative Total Performance = Cumulative Financial Performance * Cumulative Market

Performance * Cumulative Marketing Effectiveness * Cumulative Investment in Future *
Cumulative Wealth
= 6.628 * 0.223 * 0.589 * 4.464 * 0.808
= 3.131

2. Cumulative Financial Performance = (Financial Performance Q3 + Financial Performance

Q4 ) / 2
= ( 2.77 + 10.49 ) / 2
= 6.63
Financial Performance Q3: 2.77
Financial Performance Q4: 10.49

3. Cumulative Market Performance = (Market Performance Q3 + Market Performance Q4 ) /

2
= ( 0.20 + 0.25 ) / 2
= 0.22

Market Performance Q3: 0.20

Market Performance Q4: 0.25

4. Cumulative Marketing Effectiveness = (Marketing Effectiveness Q3 + Marketing

Effectiveness Q4 ) / 2
= ( 0.57 + 0.61 ) / 2
= 0.59

Marketing Effectiveness Q3: 0.57

Marketing Effectiveness Q4: 0.61

5. Cumulative Investment in Future = Investment in Future Q4

= 4.46

6. Cumulative Wealth = Wealth Q4 = 0.81

 Reasons for deviations in reaching targeted sales

1. Competition Features – Competitors in the market used features which

were superior, which gave them a relative edge. This resulted in increases
sales of the competitors.

2. Ad design – Our advertisements missed some important benefits which

should have been included in our brand advertisements and this negatively
impacted our demand.

3. Inadequate number of stores – Our competitors opened more stores as

compared to us which resulted in low sales.

4. Price Rebate – Our competitors offered price rebate on all products

whereas we offered only on 2 products, hence customers opted for the
competitors’ brand.
 Marketing Plan from Quarter 5 to Quarter 8

Demand Projections – Q5-Q8

Brand Demand
Projection Demand projection for the Quarter
Last
Quarter
Demand % Q5 % Q6 % Q7 % Q8 %
Serene 191 15.9 330 19.6 395 19.6 454 19.6 545 19.6
ProV2
MadMaxV2 234 19.5 420 25 504 25 580 25 696 25
Urban 343 28.5 390 23.2 467 23.2 538 23.2 645 23.2
TerrainV2
Steep 435 36.2 540 32.1 650 32.1 748 32.1 898 32.1
RacerV2
Total 1203 100 1680 100 2016 100 2320 100 2784 100

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

A differentiation strategy is an approach that companies build by selling something unique,

distinct and distinct to consumers from goods that their rivals can sell in the marketplace.
Rising competitive advantage is the main goal of the implementation of a differentiation
strategy.
PowerNPedals has also focused on product differentiation which strives to distinguish its
products from its competition. The product differentiation is based on product features and
product colours different from that of the competition. A few R&D features are – Breaks, Tiers
and Carbon Fibre Material. These features are the best features and are used for just not one
segment but both, our primary and secondary segment i.e., Mountain and Recreational
Segment.
 Points of Parity
 Brand Features – Major features of the products are inspired from the competition and
market leader to maintain parity and transform their POD into our pop.
 Prices & Rebates – Prices have been set in parity with the competition. This had been
done keeping in mind the cost of production and profit margin. Rebates have also been
given in some products to attract more customers.
 Advertising – Major brands have advertised all their products and PowerNPedals
follows the same strategy.

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).