-I chose the name “Aaron’s Bikes” because it is simple and easy to remember. Most of the
big branded companies have very simple, memorable names (Best Buy, Ikea, Amazon,
Apple, etc.) Aaron’s Bikes is simple and gets to the point.
-Based on the data from New York City, Rio De Janeiro, Amsterdam, and Bangalore, the
12-month potential demand for recreational bikes combined is 23,536. The 12-month
potential demand for mountain bikes is 15,555. Finally, the potential demand for speed
bikes is 14,374.
-If the demands were met, a profit of (900 x 23,536) would be made off $21,182,400
Recreational bikes. A profit of (1,120 x 15,555) would be made off $17,421,600
mountain bikes. Lastly, a profit from speed bikes would be (1,300 x 14,374).$18,686,200
-Based off this information, the greatest Target Segment would be Recreational Bikes.
More people are interested and would therefore strike interest out of more buyers.
-I gave myself the position of “President-Overall Leadership” because I will be making
most of the company wide decisions. I also gave my second responsibility “VP-Sales
Management” because I have a sales job in real life and will be able to apply real life
skills to it.
-New York City’s 12-month potential on recreation bikes is (900 x 5,836) on $5,252,400
mountain it’s $5,557,440 (1,120 x 4,692) and speed is $6,282,900 (1,300 x 4,833) All of
which adds up to $17,092,740.
-NYC’s Quarterly lease cost is 72,000. Per year that would be $288,000 (72,000 x 4).
Total profit on rec bikes would be (5,252,400 – 288,000) per year.$4,964,400
-Rio de Janeiro’s 12-month potential on recreation bikes is (900 x 4,978). $4,480,200
Mountain bikes is $4,223,520 (1,120 x 3,771) while speed is $2,995,200 (1,300 x 2,304)
Totaling out to $11,698,920.
-Rio’s quarterly lease cost is 17,000. Per year that would be 68,000 (17,000 x 4). Total
profit on rec bikes would be (4,480,200 – 68,000) per year.$4,412,200
-Amsterdam’s 12-month potential on recreation bikes is (900 x 6,830). $6,147,000
Mountain bikes is $3,839,360 (1,120 x 3,428) while speed is $5,739,500 (1,300 x 4,415)
Totaling out to $15,725,860.
Marketing Simulation Paper
Quarter 1
-Amsterdam’s quarterly lease cost is 54,000. Per year that would be $216,000 (54,000 x
4). Total profit on rec bikes would be ($6,147,000 – 216,000) per year.$5,931,000
-Bangalore’s 12-month potential on recreation bikes is (900 x 5,892). $5,302,800
Mountain bikes is $3,801,280 (1,120 x 3,394) while speed is $3,668,600 (1,300 x 2,822)
Totaling out to $12,772,680.
-Bangalore’s quarterly lease cost is 13,000. Per year that would be $52,000 (13,000 x 4).
Total profit on rec bikes would be (5,302,800 – 52,000) per year.$5,250,800
-I chose Bangalore to open my first store because they had the second highest value on
Recreation bikes (which is my priority), the third highest overall revenue and the
cheapest quarterly lease cost. Long term, starting here would save me the most money
