Golden Dreams Bike Rental and Repair Store Team A David Kelvin Amy Dong Manbir Mohammad Introduction • • • • Golden Dreams Bike Rental Owned by Adam Craig Nester’s Market Strip Mall Been in business for 1 year Main Problems • Not enough clients during the winter season • Lack of advertisements in central locations • Limited variety of bikes Facts • 80% rental capacity in June, July and August – 50% in September and October – 10% for rest of the year • Currently have advertisements in: – Pique and Whistler Question – Free weekly papers – Yearly cost: $5000 Assumptions • Dude Taylor stays employed at the store • Technology is unchanged • No other bike shops open in the area Competitive Analysis • Competition: – Large bike shop • Strengths: – Located at Whistler Mountain Bike Park – Caters to hotels and individuals SWOT: Strengths • Large inventory space • Dude Taylor for bike repairs and maintenance • Only bike store in the Nester’s Market Strip Mall SWOT: Weaknesses • • • • Currently have 2 broken bikes Limited capital for expansion Store hours can be revised Limited variety of bikes SWOT: Opportunities • Rent town centre location – More space and better car traffic • Move to Function Junction – Cater to local market and home owners – Larger than current location – Rent is lower, but may increase – Close to new Whistler Creek development SWOT: Threats • Weather leading to low demand – Winter season • Competition – Large bike shop • If move to alternative locations: – Higher rent – New competition Target Market • • • • • • 16-30 year olds Male and female Sports-loving families Risk takers Health-conscious people Weekenders Recommendations • Relocation • Diversify products • Promotion Relocation • Advantages: – Bigger market (new target market) – More inventory space – Easier access • Disadvantages: – Higher expenses (i.e. rent) – More competition – Possibility of bankruptcy Diversify Products • Advantages: – More potential customers – More stable revenue during winter season – Make use of idle inventory space • Disadvantages – Don’t know if products will have market – More competition (i.e. Ski shop) – Need more staff to look over new products Promotion • Advantages: – Reach and attract more customers – Free advertisements on the web – Can create free website for store • Disadvantages: – More costs for advertisements – Some customers and markets are not responsive Solution • Establish a new mission statement – Provide new service to community for sports lovers (i.e. bike training) • Diversify his products – Have more variety of products for people of all experience levels – i.e. beginners to experts • Establish customer excellence – i.e. more public events for bikers Plan of Action Product -Service-oriented -Establish customer excellence through training courses and public events Price -Set up a competitive price -Promotions for beginners -Discounts for regular clienteles (i.e. membership) Promotion -More public events for bikers -Bike training packages for beginners -Setup a website -Advertise on social media websites Place -Remain in the same location because there is sufficient amount of population Plan of Action 1. Establish a mission statement 2. Schedule a training program for new and beginner bikers 3. Create public events for bikers (i.e. contests) Plan Action 4. Setup a website and advertise on social media websites 5. Have winter products available i.e. ski bikes, toboggan, sleds Course Concepts • • • • • • Diversification Market penetration STP SWOT Customer excellence Marketing mix