MARKET STIMULATION

GROUP ASSIGMENT

Thank You

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 INDEX

Sr.No. Particulars Page No.

1. Quarter 1
2. Quarter 2
3. Quarter 3
4. Quarter 4

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Quarter 1

Introduction

SoulTrek is an ambitious venture set out to deliver its consumer high quality carbon-fibre
cycles at an affordable price. At present, this niche market is dominated by manufacturers
producing bikes at a premium price, only a handful can source them. The intention of
SoulTrek is to make these cycle available to a larger audience with the help of novel and
innovative technology.

SoulTrek believes in teamwork. It aims to cultivate a work environment which propagates

creativity. It believes to take decisions with approval of majority of the team members. Work
discipline is another element that SoulTrek believes in and ergo, it has laid some ground rules
that need to be followed by the team members.

 Attendance at all meetings is mandatory, unless members inform others in advance of

a conflict.
 Meetings start and end on time.
 Members come prepared for all meetings (having completed all assignments).
 Outsiders must be approved before they are allowed to attend meetings.
 An agenda is prepared and followed in each meeting.
 Members brainstorm solutions to problems, and only critique suggestions after all
ideas are on the table.

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  Everyone has an opportunity to participate in discussions.
 Members use active listening techniques and refrain from interrupting each other.
 Members minimize or abstain from allowing outside interruptions in the meeting
(e.g., visits, phone calls).
 Members maintain confidentiality of what is discussed in team meetings.
 Members are open to giving and receiving honest feedback to/from each other.
 Roles for a timekeeper and meeting facilitator are rotated for meetings.

Logo

SoulTrek’s logo consists of a cycle that seemingly portrays

speed. The colour purple signifies royalty, nobility, luxury,
power, and ambition. These qualities resonates with our value
proposition.

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Market Survey

It is always suggested to study a market before commencing into a business. It provides

quintessential insights that help businesses to take important decision. SoulTrek too, decided
to hire a market research firm to conduct a survey. A larger sample of geographically
dispersed end users drawn from diverse economic markets and population sizes should yield
an accuracy of plus or minus 4 percent, a minimum in survey research. Therefore, taking a lot
of aspects into consideration, we went with a market survey with the size of 800 respondents;
Error rate of 3.18% and a Total Cost of 72,800.

Quarter 2
Decision Making Process
1. Goal and Strategy
 We received the market research that was purchased in the prior quarter. The first
decision we had to make in this quarter was which segment we wanted the company
to focus on. We chose to target the Recreation and Mountain segments in order to
build a marketing niche. Speed was ranked third on our priority list.
 Our target market size was small focus groups with high margin segments and large
focus groups with high competitive segments.

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  We focused on the geographic market which are middle of the cost/size continuum
 Our competitive posture is to take the lead in the new market, build and maintain the
position in the markets. We also focus on attacking the competition on the home
ground.
 Our distinctive competencies are being the low price provider in the market, be the
market share leader, being the profit margin leader, being profit margin leader and
high service provider in the market.

2. Brand Management
Looking at the customer needs and use pattern we designed to brands for out top two
priority segments and one for our third priority segment, namely:

Segment Brand Name

Recreation SoulInfinity
SoulTrek
Mountain SoulFurry
Speed SoulFly

The qualities of these brands were chosen with the demands of the consumer. Our
goal was to establish a brand that had all of the required attributes for the consumer in
order to gain the most market share. We kept an eye on rising production costs while
introducing new components in order to maintain good profits.

3. Sales Management
We opened stores in Seville, Europe and Tokyo, Asia. These stores had the good
market potential and the price the consumers were willing to pay was also favourable.
These regions gives us the highest return at a very plausible cost. The demand in this
region was also at its peak, so it was only natural to start our operations in this region.

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Quarter 4
Market Share:

Starting with the market share, the total share of Soul Trek in quarter 3 was 29 %. And C-
Fycles were the highest with 44% of market share. Our main focus for the quarter 4 was to
break the C-Fycles’ market share in youth and work segment as they were dominating it and
to increase ours.
Including New Segment:
Till quarter 4 we didn’t had a product for the work and youth segment so in order to break the
C-Fycles’ share we launched our Soul wonder for youth and Soul X-Cel for work segment

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with few similar features as C-Fycles as we were financially strong and capable of launching
new product.
Pricing:
We opened two new stores in MEA and NORAM in order to launch our new products as the
competitor’s demand for youth was high in these areas. While deciding the prices we kept in
mind the willingness of the customers to pay for a particular cycle and the competitors price.
Our profit margins are higher than our competitors.
Advertising:
We also focused more on advertising in order to increase sales. We know that advertising is
an important factor contributing to sales. We have increased our total number of inserts for
local media to 60. We have kept less people for sales and service at stores compared to our
competitors. As we have decided to spend more in advertising which have shown significant
results in the next quarter.
Results:
The results of quarter 4 were astonishing. We were the top performer as we had the highest
balanced scorecard. We also managed to have the highest market share of 35%. We also
succeeded to gain a significant amount of market share in the youth segment.
We generated more than 3 million in sales and decision to open stores in NORAM and MEA
was appropriate. We also get good response for our two new products Soul wonder and Soul
X-Cel. We also did great in advertising as our ads were the top most rated ads. And deciding
to spend more on advertising was the right decision we took. Overall this quarter showed
good stats for Soul Trek.

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