Executive Presentation: Market Performance of BiCyclone Company

Executive Presentation to the Board
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Introduction
This report is a representation of the market performance of BiCyclone Company from Marketplace live simulation that I carried out for the first quarter to the sixth quarter. The report starts by providing an overview of the financial performance of the firm since it was started and how strategic decisions made at the start of the company impacted its financial performance. The report also provides information about how management of teams impacts the success of the company. Some of the crucial aspects highlighted in the report include overall corporate strategy, marketing strategy, sales strategy, and human strategy
BiCyclone intended to introduce a new line of carbon fiber bicycles in North America, Latin America, Europe, Middle East, and Africa. There were also plans of expanding the business to Asia Pacific regions. Before delving into an analysis of BiCyclone performance, it is recommended that one understands the current state of carbon bicycles in the selected market segments and how they have fared so far. Generally, carbon bicycles are expensive to produce and very few people have them in the selected regions of entrance. While it is expected that the demand for these bicycles is likely to surge in future, the decisions that we have made are likely to have a significant impact on the lifespan of the company and its overall success.
Three segments were selected for launching the carbon bicycles. The choice of the three segments was based on the potential that it holds for the success of the business. The three segments are recreation, mountain, and speed segments. Each of them has unique attributes that make it preferable for the future of business. It is evident from the financial results in the sixth quarter that some of the decisions made in the first quarters had a significant impact on the financial performance of the company.
Review of BiCyclone’s Financial and Market Performance
A quick overview of the financial performance of BiCyclone in quarter six shows that the management board’s decision had a significant impact on the company’s market share and overall market performance. Figure i.o below shows the cumulative industry results for quarter
Figure SEQ Figure \* ARABIC 1. BiCyclone's Cumulative results for Q6
While it is true that the company made some investments in the first year, there was a significant change in the second financial year for the fifth and sixth quarters where the company decided to invest more in research and development, advertising including internet marketing, and sales force expenses. There is little doubt that these decisions had an impact on the success of the company, considering that there was a need to expand the company’s market share. It is evident from figure 1 above that these decisions had a significant impact to the overall revenue realized in the sixth quarter of the financial year. It is evident that research and development in addition to market research and internet marketing had a significant impact in creating awareness about the company and generating new customers both online and offline that increased the company’s market share from 29.25% in Q5 to 30.71 in Q6. This indicates the importance of investing in advertisement, internet marketing, and the overall purpose of focusing on internet marketing where vibrant consumers spend their time.
However, in spite of BiCyclone’s increase in its market share, the company still ranked less compared to its major two competitors in the market as seen in the figure below. BiCyclone’s market share stood at 30.71 % while its two competitors Sunride and Leopard were at 34.18% and 35.12% in the company’s sixth year. It is evident that the higher demand among the market leaders was responsible for their higher market share. This indicates that BiCyclone’s target of increasing the market share is directly linked to the firm’s market demand. Evidently, the company’s increase in market share was linked to advertisement and marketing research activities. Further investments in these sectors are likely to attract desirable results.
Figure SEQ Figure \* ARABIC 2 Market Share
BiCyclone's Marketing Strategy
Marketing strategies play a significant role in the success of any company in the market. Different factors had significant impacts on the success of the company and its brands. An analysis of the strategies such as target segments, brand strategy, financial strategy, advertising strategy, and sales channels strategies reveal how these strategies played a crucial role in the success of the company.
Overall corporate strategy
The success of any business is linked to the corporate strategy in place. Corporate strategy entails the duty the business has towards its stakeholders. Any change in the value recorded during the time the business was operational is directly linked to the manner the business worked with its stakeholders to create value to the business. BiCyclone’s corporate strategy revolves around adding value to the community while at the same time contributing to social and community development. Apple’s corporate strategy revolves around manufacturing quality carbon bicycles and selling them to consumers with an expectation that the consumers will get value for their money. Today’s consumers are sensitive on how they spend their money. BiCyclone is mainly interested in making sure that its target consumers get quality bicycles at an affordable price.
Marketing strategy
During the opening year, BiCyclone decided to focus on three target segments, but the recreation segment was not one of its priorities. The target segments were mountain and speed segments. The company assumed that the competitors would most likely target the speed and mountain segments, even though this turned out to be different As seen in figure 3 below, speed was the least performing followed by recreation at 31%. It is evident that the decision to prioritize Speed brand had an adverse impact on the company’s market share. If the firm could have considered recreation brand as the priority, there could have been significant changes in the company’s market share and overall performance.
Figure SEQ Figure \* ARABIC 3 Target Segment performance
During the fourth quarter, BiCyclone decided to introduce two more segments, the BiCyclone SE and RE. Two additional segments of monster and thunder were introduced in the Q6. The reason for these new segments was due to lack of the competitors in the market. The diagram below shows the performance of each segment in Q 6.
Figure SEQ Figure \* ARABIC 4 Performance by segment
It is evident from the table above that the decision to introduce new segments had a significant impact on the company’s success. The demand for monster was 603, above the original segments such as BiCyclone-M and BiCyclone-S. Thunder was at 476, still above BiCyclone-S. It is acceptable to conclude that the company made an informed decision to introduce these target segments because they not only increased the company’s market share, but also generated significant revenue for the firm.
Brand Strategy
Each of BiCyclone’s segment had a unique brand designed to meet the target market. The three original brands were BiCyclone-M and BiCyclone-S, and BiCyclone-R, before the company introduced additional brands of BiCyclone-SE and BiCyclone-RE and eventually the monster and thunder brands. The figure below shows the profitability of each brand.
Figure SEQ Figure \* ARABIC 5. Profitability by brand
It is good to note that the decision to introduce new brands was not made overnight. Each decision was made after a significant research and analysis of consumers’ tastes and preferences. Each brand was channeled to its respective market after the firm had conducted significant market research to match the expectations of the target consumers. Additionally, one of the strategies of meeting the consumer demands is to understand the consumers’ tastes and preferences. However, since the tastes and preferences of consumers are unpredictable, the focus shifted on usage patterns with the goal of creating brands that resonate with the consumers’ tastes and preferences. Additional modifications were made later to make sure that the brands presented resonated with the expectations of our target consumers.
Sales channel strategy
BiCyclone’s first sales channels were opened in North America, Latin America, Europe, Middle East, and Africa. There were also plans of expanding the business to Asia Pacific regions. The ch...