Marketing 1102 Oral/Written Case Study
A Whistler MountAin Bike Business…. WhAt MArketing strAtegy is needed?
Group B: David Jones, Edward Yuen, Katie Lobb, Leslie Hong, Leslie Yao, Matthew Tymos, Steven Thaker
Introduction: Adam Craig, an Olympic bike racer and owner of the Golden Dreams Bike Rental and Repair Store, was having
some business difficulties. As a new business owner, he is experiencing the common challenge of maintaining a successful
profit margin. We are presenting a detailed Marketing Case Study into the Golden Dreams Bike Rental and Repair Store’s
business.
Problem: Adam Craig needs to increase his client base which will allow him to sustain business or make a profit for the long
term.
Facts/Assumption:
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Whistler culture embraces biking
Biking supported by local Municipal and provincial government
o Over 200 km’s of maintained double and single track cross-country trails are available, of varying difficulty
o 35 km paved pedestrian/bike trails meandering past five lakes, numerous beaches, and majestic
forests. It’s an eco-friendly way to experience Whistler’s natural beauty.
Existing market demand for Adam’s Bike Rental and Repair business
Research:
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Population (2006 census):
o 9,595 permanent residents
o 2,266 seasonal residents
o 11,522 second-home owners
o 79% of Whistler workers live in Whistler (average age 20-40)
Resort Capacity
o 35,000 overnight visitors (150 hotels, condos, chalets, pensions and bed & breakfast facilities offering more
than 8,000 bedrooms. There are also 230 hostel beds and 118 campsites)
Visitor Numbers
2.1 million over-night and non-overnight visitors per year (48% winter, 52% summer)
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New residential neighbourhood built across Hwy 99 from Nester’s Mall= more potential local clients
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Competitive Analysis:
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Whistler Blackcomb
o Vast majority of rental business
o Focusing on hotels and tourists
o Large Corporation, transactional orientation
o Strengths lay in the ability to accommodate a large variety of rental groups, and being able
to offer package deals that appeal to the tourist industry
Adam Craig
o A more intimate business atmosphere
o Connect with the customer
o Attract locals for repairs
o Ability to adapt to requests
Strengths:
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Existing business space+ inventory
Owner well-renown Olympic Bike racer, established reputation/ name recognition
Experience and knowledgeable staff (owner+ repair person)
Local client base
Small business offers more intimate service
Higher visitor population in summer 52% than winter 48% (of 2.1 million over-night guests per year)
Already advertising in local papers- getting word out
Weaknesses:
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Small business- 2 workers lots of strain to maintain operational hours
Seasonal business, no services in winter
Not prime location- 1km outside Village hard to compete with shops in immediate Village
Disproportionate hours- long days, 7 days/week
Small inventory- very negatively impacting when bikes from fleet are out of commission
Over-dependent on local client-base, not marketing to tourists
Rent inflation/ increases
Not using full resources- 100sq ft empty space in store (could be used for more merchandise, repair space, or
inventory)
Opportunities:
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Diversify into ski/snowboard rentals/repairs services
Change marketing plan
Owner changes services- does skills clinics and/or bike tours
Change/buy new bike inventory- electric bikes (good for Baby Boomer demographics)
Promote business during local’s weekly bike races (offer discount coupons, sponsor a bike race)
Post-Olympic awareness is drawing more visitors to Whistler
Threats:
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Major competitor Whistler Blackcomb- large bike fleet, mainly downhill bikes, better location
12 other bike repair/rental companies in Whistler, already established reputations and loyal clients
Economy hardship means less people’s discretionary money – families can’t afford vacations
“Staycation” trend (people opting to take vacations closer geographically to their homes, limiting travel distances)
To break-even, might need to increase bike rental fees for customers- increase price, decrease quantity demanded
Target Market:
Geographic:
- Whistler area, Sea to Sky Corridor (Vancouver to Whistler)
Demographic:
- Generation X,
Psychographic:
- Active lifestyle
Behavioral:
- Disposable income
Solution:
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Market Penetration:
o Increase market penetration by investing in marketing communications/advertising to create awareness to
increase value for our target market.
3 Advantages:
o Attract new customers
o Create loyal customers culture that will build his business
o Would produce an increases sales because people will be more aware of he is offering
3 Disadvantages:
o There is no guaranty that people will respond to the advertising
o The advertising might not reach the target market
o If ineffective marking plan, loss of time, money in advertising
Implementation:
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Majority of Focus on branding Adam Craig the person and relating into his business
1. Website
2. Email Advertising/ Newspaper (website/ customer sign up)
3. Sponsor Toonie race
These options are cheap and easy to implement and can easily apply to the marketing mix (4 Ps)
Valued based Whistler experience
Distinct from the corporate businesses, attract locals