Mikes Bikes

1818 Words Dec 30th, 2014 8 Pages
Mike’s Bikes Paper # 1
Instructions: Complete a five year simulation, and answer the following questions on the actual approach you used for the simulation. You may type your answers directly on this form, but the completed document must be 2-3 pages in length (please do not change the margins). Due November 25, 11:59pm

1. What is your overall strategy (Selling on Price or Value?) A. If selling on low price, what is the implication for decisions you will make on spending (Advertising, PR, Branding, Channel Support, Quality, Efficiency, etc.)?

My Overall strategy eventually was to provide a moderately priced product at suggested cost and again and medial quality. After dabbling in the program for a while, I began to somewhat
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I figured putting money towards efficiency would not only allow me to create more units, but it would also bring down the amount of wastage as to where increasing SCU would create more wastage and also make the efficiency upgrades that I would purchase less effective per dollar. This is likely because with more SCU, comes more equipment and more employees that need to be trained or upgraded with ‘efficiency updates’ in order to improve production and productivity. Therefore, less units equals less distribution of upgrades.

I essentially wanted to be an efficient company that could maintain a steadily increasing Share Holder Value with as few expenditures as possible, and it seemed to be working for a while. I also wanted to have a higher number of sales as it seemed the more sales I had, the less customers the competition had to sell to keeping their sales down a little bit.

B. If selling on value, what “value” are you planning to sell (Quality, Product Specs, Delivery, a trusted brand)? Use the Market Information Report (Product Dimension Preferences and Product Dimension Sensitivities tables) to explain your decision.

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2. Describe your planned Marketing Mix Strategy. Note the relevant Market Information data: * Product (Add

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