The Success of Schwinn Bicycles: An Analysis

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SLP 5 Pricing The prices to be implemented in the retail of the bicycles have to be competitive ones, affordable for the consumers, as well as able to generate a return on investment. This virtually means that a variable pricing strategy would be implemented, to ensure that the final retail price reflects the costs incurred in the manufacturing and delivery of the bicycles (Mills, 2002). On occasions, the firm would also implement promotional pricing in order to stimulate sales and attract customers. Executive summary The bicycle industry is stimulated by an increasing emphasis on health and environmental responsibility, revealing as such new potential for the business agents in the industry. In order to succeed within the sector, it is necessary for the companies to develop and implement specific and adequately targeted marketing plans. Part I: Situation analysis Schwinn Bicycles is a long lasting and reputable manufacturer of bicycles, which has revealed a rather tumultuous history. The company has even been on the verge of bankruptcy, but has managed to overcome this challenge. Today, the organization is part of the Pacific Cycle Inc., which means that its particular data are difficult to retrieve and separate from those of the parent group. Schwinn Bicycle encounters difficulties in satisfying the continually changing needs of customers or the advancing technologies. The demand for the Schwinn bicycles is characterized by seasonality (higher in the

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