Marketing Strategies and Decisions: Mike's Bike Shop Report

This report presents a comprehensive marketing analysis of Mike's Bike Shop from 2019 to 2024, examining the company's strategic decisions and their impact on market performance. The analysis begins with an overview of the shop's market position and the competitive landscape. The core of the report details the marketing strategies implemented each year, including pricing decisions, advertising expenditures, product awareness campaigns, and production adjustments. The report highlights key financial metrics, such as market share, shareholder value, and sales revenue, to assess the effectiveness of each strategy. It also explores how the shop adapted its approach in response to market changes and competitor actions. The conclusion summarizes the findings, emphasizing the company's ability to adapt its marketing strategies to maintain profitability and navigate market fluctuations. The report references key marketing concepts, such as product promotion, public relations, and advertising spend, to provide insights into effective business practices.

Running head: Marketing Decision
Name of the Student
Name of the University
Author Note:

1Marketing Decision
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

2Marketing Decision
Introduction
Mike Bike Shop is a Canadian shop which ranks along 165 stores for almost three years
since 2016. Mike Bikes has been recognised as most demanded shop in Canada. Mikes Bikes
has rewarded with many recognitions. The following report has depicted the current market
analysis which shows that how the business turned itself into a brand and yearly strategies
implemented by the company. The paper also shows the yearly comparison for brief
understanding.
Discussion
Marketing Decision
For the Year 2019
In 2019, the Mike’s Bike market share is 60.9 and the total market share is $445,091,962 which
shows good value for PR that is over $211,000 in public relation for the “Erehwon bike” as they
have great demand in the year 2019. The retail price is $375 for youth bikes. Compared to the
rest of the competitors in the market is high. Therefore the overall cost spends in advertisement
for this product was found to be satisfactory. The overall production is $33,000. The other
strategy to make is to increase the price of the bikes that is adventure bikes as $800 per unit.
Therefore the year 2019 was profitable for Mike Bike’s with special reference to marketing.
Marketing Decision
For Year 2020

3Marketing Decision
Mike’s Bike is making certain changes in the youth product, the retail price is $325 and the
advertising expenditure is $400,000, the product awareness is 11%, and the actual sales unit is
11%. The overall planned production is $75,000. The actual production is $67,500. The
production is more as compared to more than the previous year.
Marketing Decision
For the year 2021
In the year 2021, the retail price is $300 for youth bike and the average whole sale price is $210,
the overall advertising expenditure is $800,000 which double of the year in 2019 and the product
awareness that is 18% which is again more than that in 2019 which was 11%. Therefore as the
advertisement expenditure is increasing the product awareness is increasing. The average
manufacturing cost per unit is $80.61 and the actual production is 63,440 which is less than
2020.
Marketing Decision
For the year 2022
For the year 2022 we took the decision to increase the price of mountain bikes (electric bike –s
work turbo Levo) from $12,049.99 to $13,000. Our price for the other bikes was decreased by
10% but the other promotional factors were not changed. Only the price of the mountain bike is
changed as according to the previous recodes the mountain bikes where highly searched by the
customers through internet like facebook.
Marketing Decision
For the Year 2023

4Marketing Decision
As the price of the mountain bike was increased in the previous year, there is no alteration of
price in this year. This made the prices a mid-range price for all the bikes. This strategy is found
to be good enough for all the models of bikes. This year the advertising funds were re-allocated
so as to increase the advertising pay-off and confined within the budget. With the mountain bikes
the advertisement through magazine and television is reduced by $100,000 and the cash was
redistributed into youth bikes. The overall expenditure for the advertisement of youth bike in this
year is $980,000 for television and $350,000 for internet and nothing for magazines.
Marketing Decision
For the Year 2024
The market share price has fallen down to 32%, and the competition is getting higher and the
shareholder value $66. Lot of changes were made in the previous consecutive years therefore
there was lack of good amount of production. Since the new model of huge mountain bike is
introduced priced $13,000, it was very obvious that the competitors would produce a different
model of mountain bike therefore as it is new it was decided that huge amount will be spent on
huge mountain bike to attract the customers. Around $500,000 was spent on advertisement for
huge mountain bike. Apart from this the competitor of Mike’s Bike received the maximum retail
sales which range from $44 million to over $60 million which is highest but fairly the company
received high recognition for the new product that is for huge mountain bike due to the heavy PR
and advertisement.

5Marketing Decision
Conclusion
It can be concluded from the above analysis that the company is at utmost profit through various
strategies and marketing decision through promotion. The following marketing decision from
2019 to 2024 shows the market recession and boom. The report shows how Mike Bike changes
its marketing strategy to earn profit and maintain its balance in the market.

6Marketing Decision
Reference
Byrd, D., Hybinette, M., & Balch, T. H. (2019). ABIDES: Towards High-Fidelity Market
Simulation for AI Research. arXiv preprint arXiv:1904.12066.