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MarketInformation.pdf

28/05/21, 18)00Smartsims - MikesBikes Advanced Multi-Player

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Market Information 2021 Q2: BUSMGT 711 - Asia - Period 2023

Segment Size and Price Range The table below outlines the estimated market size (total retail sales value) of the various market segments. Segment Actual Demand (2023) Forecast Demand (2024)* Minimum Retail Price Maximum Retail Price Recommended Kids 268,956 units 309,000 units $100 $700 $375 Racers 24,619 units 26,000 units $1,000 $5,000 $3,950 Commuters 213,708 units 256,000 units $100 $500 $350 Leisure 201,605 units 222,000 units $100 $700 $425 Adventurers 192,000 units 192,000 units $1,000 $3,000 $1,700

Notes:

1. The Forecast Demand is an ESTIMATE of the likely size of each market segment for next year. 2. The Retail Price Range indicates the EXTREMES. You are advised to stay near the middle of the range.

Customer Preferences by Market Segment Customer responsiveness to product attributes for each market segment (low, medium or high). Segment Price Advertising PR Quality Distribution Delivery Time Product Specs Kids High High Low Low Med High Low Racers Low Low High High Med Low High Commuters High Med Low Med Low High Low Leisure Med High Low Low Med High Low Adventurers Med Med Med High Med Low Med

Product Dimension Preferences The estimated preferences for product dimensions in each segment is given below. Attaining index values close to or exceeding these targets is important to maximize sales in these segments. This table represents a reference point against which to measure how successfully positioned your product is in each segment. Refer to the 'Market Summary Report' to observe your current product performance under all these dimensions. Check competing products also. Segment Retail Price Awareness PR Quality Distribution Delivery Product Specs Kids $375 0.50 0.10 0.70 0.50 0.90 0.80 Racers $3,950 0.15 0.50 0.90 0.50 0.70 0.95 Commuters $350 0.50 0.10 0.80 0.30 0.90 0.70 Leisure $425 0.50 0.15 0.50 0.50 0.90 0.75 Adventurers $1,700 0.40 0.35 0.85 0.55 0.70 0.90

Media Channels

Media Viewing Habits

The proportion of each market segment that can be reached through the different media channels. Each row will add to more than 100% as people watch multiple media channels. Segment TV Internet Magazines Kids 70% 20% 20% Racers 10% 40% 60% Commuters 50% 20% 10% Leisure 60% 30% 20% Adventurers 40% 30% 50% Max Advertising $5,000,000 $5,000,000 $5,000,000 Max PR $5,000,000 $5,000,000 $5,000,000

Notes:

1. Because people watch/read more than one media channel, the rows can add to more than 100%. 2. Combine Viewing Habits with the Media Reach information below to decide on an optimal Advertising / PR Mix.

Advertising and Public Relations (PR) Media Reach

28/05/21, 18)00Smartsims - MikesBikes Advanced Multi-Player

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The proportion of media channel audience that can be reached for a given Advertising or PR spend.

Notes:

1. Combine Media Reach with the Viewing Habits information above to decide on an optimal Advertising / PR Mix.

Chart Data Table for Advertising and Public Relations (PR) Media Reach Chart

The following table shows the data points used to draw the above chart. Advertising Expenditure TV and Magazines Internet

$0 0.0% 0.0% $200,000 1.1% 9.5% $400,000 4.7% 24.9% $600,000 10.2% 35.0% $800,000 16.4% 40.5%

$1,000,000 22.3% 43.6% $1,200,000 27.4% 45.4% $1,400,000 31.6% 46.6% $1,600,000 34.9% 47.4% $1,800,000 37.5% 47.9% $2,000,000 39.6% 48.3% $2,200,000 41.2% 48.6% $2,400,000 42.6% 48.8% $2,600,000 43.6% 49.0% $2,800,000 44.5% 49.2%

Segment Shopping Habits The proportion of each segment that shops at the various distribution channels is shown below. Bike Shops Sports Stores Department Stores Kids 20% 20% 60% Racers 85% 15% 0% Commuters 10% 30% 60% Leisure 20% 40% 40% Adventurers 40% 50% 10%