marketing campaign 2014

Stay Tuned Bikes, a privately owned Bellevue bike shop, specializes in high end bike sales and repairs. The marketing plan

we have developed in coordination with the owner, Oleg Mikhaylov, will help expand his current corporate clientele.  Our

objective is to receive confirmation of a corporate partnership from at least one local company, enabling them to provide bike tune-

ups for their employees before National Bike Month in 2015.  We will be executing this by offering the option to write off the repairs on their taxes.  After compiling data from secondary and primary

research, we have concluded that the average American will be interested in this service. Businesses that employ 1000-2000

people are ideal. In the next month we plan to reach out to the businesses via html emails, as well as phone and personal

meetings if the opportunity arises.

executive summary

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table of contents

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Executive Summary ………………………………………………………………………………………..1Business Introduction & Overview ………………………………………………………........…..4-5Marketing Team …………………………………………………………………………..………………. 6Marketing Objective ……………………………………………………………………………………….8Situation Analysis …………………………………………………………………………………………10

SWOT ……………………………………………………………………………………………..11-14

Trend analysis ………………………………………………………………………………………..16

Competitive analysis ……………………………………………………………………………….. 17Target Market …………………………………………………………………………………………… 18

Description ……………………………………………………………………………………………19

Customer profile ……………………………………………………………………………………..20

Business profile ………………………………………………………………………………………21

business introduction…

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Stay Tuned Bikes opened in June of 2013 as a simple bike repair shop. Soon after, demand rose and they moved on to filling custom bike orders and fittings. Oleg Mikhaylov, the owner and founder, has ten years of experience in the bike shop business from past work. His shop is a small ‘hole in the wall’ type with minimal inventory in-store, but a great deal of character. Customers are guaranteed a

welcome to stay tuned

…& overview5

12001 ne 12th st. suite #82bellevue, wa

RepairsStandard Tune-

upMajor Tune-up

OverhaulFittings

$50 per 30 minutesFree with bike

purchase

Brands

marketing team

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“Stay Tuned Bikes is a recently opened business with a small target market.  Mr. Mikhaylov is a young entrepreneur fresh out of business school who would be appreciative of some marketing help. His business is doing well but he does not spend much time in the realm of promotion or advertising. When asked about a mission statement or vision for the future of Stay Tuned Bikes, he didn’t have much to say. He is open to our expertise and we are excited to see what we

Tucker Dana

Jordan Wakeman

Chris Conlogue

Kelsey Greene

Matt Middleton

Garrett Felix

marketing objective

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Our objective is to promote the annual tune-up program of Stay Tuned Bikes, persuading at least one new business to join. Our strategy will be to contact large local businesses via Mr. Mikhaylov’s business email address, as well as by telephone. Businesses with at least one thousand employees are highly preferred. The program takes place in April of 2015, and any participating businesses will be expected to pay for tune-ups for their employees’ bikes. The corporate benefits of partnering with Stay Tuned Bikes would be increased employee satisfaction and tax write-offs. We will aim to have commitment from at least one new business to participate by Friday, November 21st, 2014.

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The Deadline: November 21, 2014

The Offer: Annual Tune-

up Program for National Bike

Month

The Goal: Commitment from at least

one new business

situation analysis

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SWOT · Trend Analysis · Competitive Analysis

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Strengths: high quality products, high quality services, locationWOT

High Quality ProductsWhile general bikes can be found at just about any outdoor sporting goods stores, shops like Stay Tuned Bikes offer specific high-end brand road racing bikes.  Because the target market for these types of bikes is so small, there is not a lot of demand for a wide variety of high-end bike shops.  This puts Stayed Tuned Bikes at an advantage because they are one of very few similar

High Quality ServicesWith ten years of experience in fixing bikes at previous locations, Mr. Mikhaylov can be trusted to deliver exceptional service to his customers.  He is running a solo act, ensuring that every bike that comes through his shop is treated with a consistent hand. Previous customers have described him as “not only knowledgeable, but also very caring and personal”, and “an excellent mechanic” (Yelp.com).

LocationThe shop is located in Bellevue in an area full of high-end businesses such as Porsche, Mercedes and Best Buy. This could help his business because the population who shop in this area probably fall under the wealth demographic of our target market.  

“Oleg, the owner, is not only knowledgeable, but

also very caring and personal”

SWeaknesses: lack of public awareness, hard to findOT

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Public AwarenessStay Tuned is a new small business, with a very specific target market.  The age range of this market is not the easiest to attract on social media, and Mr. Mikhaylov doesn’t use much promotion other than his website, Facebook, Yelp, and word of mouth.Hard to FindWhile there is some signage around the location, it still may be difficult to locate Stay Tuned Bikes if you weren’t looking for it specifically.  It’s not in an area of heavy foot traffic, but it could possibly be seen when driving by.  Once people find it, they will most likely enjoy the quiet and calm location of the store.

New small business, with a

very specific target market

·····Not the easiest to attract on social

media·····

Not in an area of

SWOpportunities: room to grow, not a lot of local competitionT

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Not a Lot of Local CompetitionAlthough older and better known, there are only a few competing businesses in the surrounding area. This gives more power to Stay Tuned Bikes to become a well-established force in this field.

Room to GrowStay Tuned Bikes is a young business, having only been open since the spring of last year, and it specializes in a rare product and service. Mr. Mikhaylov is in a great position to expand his company and

SWOThreats: short seasons, a few competing shops in area

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Short SeasonsLocal climate leaves a small window for bike use every year. Bike sales and repairs drop off in September through December, and then pick up again at the first of the year due to New Year’s resolutions. Business then slows down again until the start of summer, when people are getting back out on their bikes in the sunshine.

Competing ShopsOther local bike shops are slightly better known and are in more populated spaces, such as downtown Bellevue near the main shopping mall of the area. Other bike shops offer large discounts in the winter seasons in hopes of bringing in more traffic in the slower months.  

trend analysis

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Political: A new mountain bike park has just been built in Redmond, next to Redmond High School. This will be found encouraging to new and regular riders. There are opportunities to get involved with the building of the park and be the “go to” place for people who ride at the park. Nearby businesses will be more likely to participate in our tune up program because of the conveniently close park.

Social: With bike to work month coming up in May, businesses can have their employees’ bikes tuned up in April while getting a tax write off. This allows the businesses to gain employee satisfaction at virtually no cost.

Economic: There is a general decline in sales and services starting in late August. It continues until a spike in January from people setting New Year’s resolutions, and then continues to decline until April. Though the decline in sales and services is a problem, the pickup begins again in April. This is lines up perfectly with the tune up program because it runs through April just after the end of the off season.

Technological: New designs are continually produced. 3D printing will bring the production cost of bikes down and make high end bikes more affordable over time. The common customer is also gaining access to higher end road bike equipment that was once reserved for racers. An example of this would be time trial cranks that will record data

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competitive analysis

Quality Price Product Availability Customer Service

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2

3

4

5

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Gregg’s Cycles is a well-established local business. They have a wide selection in the store. Although they do not usually offer sales, they are voted to be the best in Seattle. They have bikes available for rent.

Performance Bikes offer a lot of sales, due to surplus inventory from previous years. Their bikes are easy to order online, and they offer free shipping. Videos on “how to” bike repairs are available online.

REI is a large co-op that stands behind all products for one year. They are well-established and known for biking accessories available in store. REI also offers free bike

Quality

Price ProductAvailabilityCustomer

ServiceCategories

Relative number scale

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target marketDescription · Customer Profile · Business

Profile

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descriptionThe Geographic:

They live in Kirkland, Seattle, Bellevue, and Redmond, but

also come from places across the Pacific Northwest,

The Lifestyle:Loves biking!

Athletic Healthy

Go-getter

The Attitude:Current customers feel as though they

can rely on the industry to deliver a quality product that can help with

everything from commuting to exercise. They keep coming to Stay Tuned Bikes

because of Mr. Mikhaylov’s cause to provide the highest quality service. The product that is being produced is of high quality, leading people to repair the bike

rather than replace it over time. The small business is able to care for each

individual’s needs while also being able to provide excellent service to everyone that walks through the door. They stand behind the work they do on the bikes so the customers know everything will be

done correctly the first time.

The Motivation: Stay Tuned delivers the

highest quality available in repairs, tune-ups, bike

fittings, and custom orders. Customers are likely to be frequent

cyclists, or would at least want to be. Customers will

most likely not come if they are not serious

The Demographi

c: 35-50

Upper-middle class

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customer profile Our target market is Jon Smith. Jon is a

36 year old software developer for Microsoft. He lives on Mercer Island with

his wife and two daughters. In his free time he plays golf with his friends. He

exercises and works out about six hours per week, many of which are spent on his

bike.  Although Jon has a very large annual salary, he is very frugal. Our

marketing campaign is centered on Jon. He enjoys fitness, as well as saving

money. Getting his bike tuned up and ready to ride would be an excellent

service. Biking to work for a month (or

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business profile

Costco’s corporate Human Resources Manager is Steve Jacobson. Steve greatly values employee satisfaction. In his free time he takes his family to the beach to surf. Our marketing campaign fits in with Mr. Jacobson very well. He will have many happy employees as well as a platform to promote fitness and environmental friendliness. Best of all, paying for the service for his employees will be a tax write-off.

marketingresearch

Secondary Research · Primary Research

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secondary researchIn recent years, society has developed an increased desire for healthy living. This progression in lifestyle has led to

heightened demand for innovation in culture that will allow the health-conscious to apply healthful practices to their daily

routine.  Individuals are seeking political action, such as the development of dedicated bike lanes to use in their daily

commute. These people are often interested in not only their own health, but the health of their environment as well.

Businesses are responding by offering environmental and personal health incentives to their employees, which they in turn

benefit from through tax exemptions acquired through these programs. Health-conscious consumers are shaping the future

of the country, and are motivating businesses and governments alike to take action

As popularity to this new healthy lifestyle grows, more and more cities are joining the bicycle lane trend. Seattle is one

of the cities on the forefront of this movement. It has dedicated bikes lanes that are separated from the cars on the roads.

These lanes even include bike specific lights telling bikes when it safe to cross the intersection. Seattle posted an article on

their website showing off these new bike dedicated lanes and how they would benefit the health and safety of people along

with helping with traffic congestion. “Seattle is building a network that puts all residents within ¼ mile of a bike facility. We

want to make riding a bike a comfortable part of daily life for everyone.” (seattle.gov 2014)  They explain how it will be

convenient to all residents of Seattle so they can help bring about a greener and healthier community. “Riding a bicycle is a

comfortable and integral part of daily life in Seattle for people of all ages and abilities.” (seattle.gov 2014)  Stay Tuned bikes

is on this same path as well, encouraging people to ride more than drive and make cycling a daily part of everyday life. By

utilizing all means of transportation available it will bring about a healthier and stronger community.

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Growing population and industry have been increasingly damaging the environment since the coming of man.  In

recent years, it has become evident that the wear and tear humans put on the earth could potentially be very dangerous to

the survival of mankind and animals alike.  Fortunately, the trends in environmental decay are being researched and

recorded in incredible detail, and allow for activists to fight against the issues at hand.  Environmental friendliness

movements are sprouting up everywhere.  Bicycling is one trend that is currently skyrocketing.  According to the Bike to

Work Day organization, bicycling has a less negative effect on the environment because they use no fuel, use less energy to

manufacture, and don’t require toxic batteries or motor oil (Bike to Work Day, 2014).  Bicycling is an easy and fun way to

help the world, and more and more people are buying into this hobby.  The advantage this provides for the Stay Tuned

marketing campaign is that businesses will be inclined to partner with an effort that will not only benefit its employees, but

the world as well; at the same time, improving the overall image of their company.

Biking to work would not only improve an individual's health and wallet, it would also give the entire country a must

needed boost, by having more bikes and fewer cars on the road.  Joe Friel, a nationally known personal trainer and author

goes over the health benefits of cycling.  These benefits include promoting a healthy heart, improving blood chemistry,

lowing blood pressure, decreasing the risk of cancer, building stronger bones, promoting greater muscle strength, reducing

Lightfoot Cycles explains the economic benefits of bicycling.  Unlike automobiles, there are very few ongoing costs

with getting around on a bike.  The Canadian Automobile Association compared the cost of biking and the accessories

that go along with that, to the cost of just using a car.  It was estimated people would have an additional $5,000 - $6,000

per year. Employees who bike to work are also reported to be on time and take less sick days.  “Some studies have

shown that businesses that encourage staff to cycle to work benefit from increased productivity as a result of improved

fitness and mental health” (www.experienceplus.com).

Healthy lifestyles in the United States and around the world have brought change to even the “unhealthiest” of

fast food chains. According to an article by the New York Times, McDonalds is adding to its menu, which is known for its

fats and carbs, to offer some light options of salads along with their meals. It is part of their plan to match the growing

popularity of this new lifestyle.  In organization with the Clinton Foundation, McDonalds is striving to curb obesity in

today’s youth. “Customers choosing one of its “value meals,” which typically include a sandwich or wrap, French fries

and a drink, will have the option of having a side salad or a piece of fruit or a vegetable in lieu of the fries.” (nytimes.com

2014) This new trend which McDonalds is setting will further enhance and reinforce the idea behind using bikes to

provide a heathy and green way to commute. McDonalds is helping to uphold a high standard of public health and

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AARP claims that there is an increase in employers providing health care for employees. “...employer spending on

employees escalates…” (AARP 2013) Companies are continuing to promote health to their employees. This should

transition well into promoting biking to work. With employers wanting to keep employees healthy, they are most likely to

promote biking to work.

McDonald’s restaurants have begun a plan to incorporate healthier options to customers as well. Many people view

health in a high importance and McDonalds is satisfying that need. “Under pressure to provide healthier meals,

McDonald’s announced on Thursday that it would no longer market some of its less nutritional options to children and

said it also planned to include offerings of fruits and vegetables in many of its adult menu combinations.” (Strom 2013)

This corporation is recognizing the need for a healthier lifestyle and is responding accordingly.

There are many advantages of write-offs for businesses. ‘Tax write-offs are provided to business owners for the

purpose of promoting business activity. Write-offs cover business expenses, depreciation of business property and

business losses’.

           Write-offs can cover entertainment expenses, litigation expenses, losses and depreciation, and lastly travel

expenses. A travel expense includes bicycle travel, which is within our business marketing. This is an extraordinary write

off because a bicycle will last longer than most write offs, it improves health, and employees save financially by

commuting on a bicycle.  Tax incentives help businesses give back to their community and bring a unity within the

workplace.

primary researchAlong with the secondary research we conducted, our group also set to the streets in search of primary data. We

asked a variety of people walking around Bellevue Square Mall if they would like to have a bike service be offered by the

company they work for (See Sample Survey and Survey Results in Appendix). We found most people to like and support

this idea stating they would like their company to offer a bike service. We discovered that a lot of these people were in

the age range of 25-40. This data is in support of our marketing plan of reaching out to local companies and offering to

tune bikes in the month prior to National Bike Month. A lot of the people we asked also considered physical fitness to be

an important role in their lives.

    With the rise in interest to live healthfully, many corporations are moving towards providing a means for their

employees to be healthy. Many companies both large and small provide health care. Many corporations will be likely to

fix up an employee's bike for “Bike to Work Week” because it will provide a tax write-off, please employees, promote

health consciousness, and promote helping the environment by not using as much gasoline. Based off of these findings, it

is expected that a major corporation would be willing to encourage their employees to participate in “Bike to Work

Week”, as well as get their employees’ bikes tuned up.

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strategiesTactics & Implementation · Tracking &

Evaluation

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tactics & implementation plan

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Tactics >>> Contacting businesses via email and phone.  We will use an eye appealing html email to contact the businesses.

Product Bike tune ups will be performed in the month of April, once the companies have agreed to use the service for their employees. The bike tune up is the best available. All parts are checked for wear and tear. Frame is cleaned and checked for cracks. Wheels are trued and cleaned in a parts tank. Cassette and chain are cleaned and lubed. Brakes are adjusted. Front and Rear shifting is checked and adjusted. Derailleur hanger alignment is checked. All bearing assemblies are checked and adjusted if necessary. All bolts are checked for correct torque. Tires are inflated to correct psi. Bicycle is test ridden.

Price The businesses will cover the cost of the tune ups. Each tune up is $80. Although there is an initial cost to the business for each participant, there is a tax write off after, making it no cost to them. All forms of communication will be over email, by calling, or by face to face interactions.

Place We will be contacting the businesses through Mr. Mikhaylov’s email and phone. Our implementation location will be his shop, but we may also meet with management at the specific business locations, if given the opportunity.

Implementation Plan >>>By sending html emails and make phone calls to each company and following up with additional information as needed. Persuading the companies to join through a competitive and quality service for the employees will in turn benefit the company. Intended businesses to be contacted include but are not limited to Amazon, Coca-Cola, Starbucks, Safeway, QFC, Eddie Bauer, Northwest University, City Council, Pokemon, and Costco.

If the campaign does not go as planned and we do not have a business signed up by Thursday November 20th we will run local print advertisements to be put up in local gyms. Gyms with a spinning program are preferred.

If any business signs up for our tune-up program we will continue to pursue more businesses, as well as set up an email to be sent in March (right before April) reminding them of the program.

tracking & evaluation

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Because our campaign is marketed towards a much larger group of individuals as a whole, tracking will be quite simple. Progress will be tracked by the amount of commitments from businesses willing to participate. If our goal of one business is not met by November 20th we will run print advertisements in local gyms.

We will measure success of the marketing plan by having a list of the number of companies who are willing to use the tune up program. Our goal is to have at least one new company in the tune up program by the end of the campaign. Our success will be based on our final list of companies, and whether we achieved our goal of one company’s commitment.

appendix

Survey Results

Gender Age Employer

Value Fitness

Weekly Exercise (hrs.)

Utilize Service?

Male 0-25 Albertson's Yes 4 No

Male26-35 Olive Garden Yes 6 No

Male26-35 Crate and Barrel Yes 5 No

Female 0-25 Starbucks No 5 No

Male26-35 Valley Medical Yes 7-8 No

Male26-35 Major Bank Yes 7-8 Yes

Male26-35 Microsoft Yes 3-4 Yes

Male36-45 Self-Employed Yes 6 Yes

Male 0-25 D'ambrosio Gelato Yes 5-10 Yes

Female36-45 Microsoft Yes 6-8 Yes

Female 0-25Personal Touch Demos Yes 10 Yes

26-

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Sample Survey

Male / Female

0-25 26-35 36-45 46-55 56-65 66-75 75-85 85+

Who do you work for? ___________________

Do you value general fitness?  Yes / No

How many hours a week do you exercise? ___

If this service was provided by your employer, would you utilize it? Yes / No

bibliography

Sample Survey

Male / Female

0-25 26-35 36-45 46-55 56-65 66-75 75-85 85+

Who do you work for? ___________________

Do you value general fitness?  Yes / No

How many hours a week do you exercise? ___

If this service was provided by your employer, would you utilize it? Yes / No

ACS: Bike Commuting Continues to Rise | League of American Bicyclists. (n.d.). Retrieved from http://bikeleague.org/content/acs-bike

commuting-continues-rise

Bike to Work Day. (2014). Environmental Benefits. Retrieved October 1, 2014, fromhttp://www.youcanbikethere.com/content/environmental benefits-0

Economic Benefits. (n.d.). Retrieved from http://www.lightfootcycles.com/benefits-of-biking/economic-benefits/

Rappa, F. (n.d.). The Advantages of Write-offs for Business Owners. Retrieved from http://smallbusiness.chron.com/advantages-writeoffs business-owners-22190.html

Seattle Department of Transportation: Seattle Bicycle Master Plan. (n.d.). Retrieved from http://www.seattle.gov/transportation/bikemaster.htm

Strom, S. (2013, September 26). With Tastes Growing Healthier, McDonald’s Aims to Adapt Its Menu. Retrieved October 01, 2014, from http://www.nytimes.com/2013/09/27/business/mcdonalds-moves-toward-a-healthier-menu.html?_r=0

The Health Benefits of Bicycling | Experience Plus. (n.d.). Retrieved from http://www.experienceplus.com/blog/?p=232Health

Wellness Programs Keep Workers, Businesses Healthy - AARP. (n.d.). Retrieved from http://www.aarp.org/work/employers/info-06 2013/wellness-programs-keep-workers-healthy.1.html

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