ncFreeRider, Inc. Situation Analysis
FreeRiders’ marketing plan identify strengths as a brand represents quality, customization, performance, style and responsible business practices both to its retailers and consumers. As a small company, FreeRiders is able to communicate quickly and effectively, in person. An on-site manufacturing facility ensures not only a high level of quality control, but enables the company to react quickly, resulting in the fastest to-market in the category. Since the company was founded in 1999, FreeRiders has seen no employee turnover. Employing freelance help on an as-needed basis has helped keep labor costs low, ensuring better wages for all. FreeRiders values loyalty and maintaining strong relationships with its suppliers. This ensures continuity in quality, faster turn-around times and preferential pricing. A strong program of educational and promotional materials for its resellers provides excellent profit opportunities for FreeRiders and its retail partners. 6. 68% of FreeRiders’ sales can be attributed to word of mouth, suggesting not only customer satisfaction, but also loyalty. The weaknesses are with over 2000 bicycle and parts manufacturers world-wide, over 100 brands to choose from, and approximately 4800 specialty bike shops, not to mention the powerful ‘big box’ retailers in the US alone, the bicycle market is fully saturated. Consumers purchasing bicycles for recreational use spend on average $350.00-$500.00 for a front suspension mountain or ‘comfort’ street bike. FreeRiders’ lowest priced full suspension mountain bicycle retails at $1,500. A highly specialized product line limits FreeRiders’ consumer base. FreeRiders’ commitment to small, independent resellers limits its ability to reach a wider audience through the ‘big box’ and chain sporting goods retailers. FreeRiders’ commitment to local manufacturing and locally sourced materials as opposed to outsourcing and going overseas results in higher production costs....
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